Entrepreneurship 101 for Early Career Scientists

Transcription

1 Entrepreneurship 101 for Early Career Scientists, 2013 AGU Career Center 19 November 2013 Copyright, 2011,

2 Our Plan for Today Skills needed to be an entrepreneur Transitioning from scientist to entrepreneur The role of innovation Elements an entrepreneurial venture

3 Congratulations! You have the advantage! Scientist Business leader, Entrepreneur Business leader > Scientist You CREATE the VALUE! You can be a successful tech entrepreneur and business leader

4 Congratulations! You have another advantage! Entrepreneurship is linked to Innovation Innovation is required for successful science and engineering careers Mindset training as an entrepreneur can help you in science innovation Triumphant, blissful scientific careers

5 Who is an Entrepreneur? Driven to victory nothing will stop you Self-starter, go-getter, think beyond realm of possibilities See opps where others see probs Control your own destiny, responsible for own work Willing to give up safety net and benefits of a regular paycheck/job Change agent, flexible Understand you have to make a profit From Abrams, Passion to Profits, 2008

6 What is the purpose of any business? To make money You do this by providing VALUE: Solving problems Cutting costs Increasing sales NOTE: EVERY Organization is a biz!

7 Entrepreneurship Way of thinking, reasoning, acting that is Opportunity obsessed Holistic in approach Leadership balanced An Opportunity is attractive, durable, timely Anchored in a product or service Creates/adds VALUE for its buyer or end user Sustainable From Timmons, New Venture Creation

8 The Necessary Transition from Scientist to Entrepreneur

9 The Scientist Science is my life Introverted vs extroverted Highly intelligent Devoted to the fundamental science/technology/engineering Always thinking about my STEM problem Science or technology-driven problem solving Self-motivated For scientists and eng researchers: In some cases, very patient (years and years to solve a problem)

10 The Scientist Inquisitive Open-minded about the way things work, Don t accept things because someone tells me the way things are, I want to find out for myself Logical decision-maker bifurcation diagram Measurement of Success: Inwardly-driven or outwardly-driven Goal in academic STEM: understand the science/engineering then go on to the next project

11 The Entrepreneur Show me the Money Highly intelligent Very focused on Solving problems Increasing sales Cutting costs Beating the competition Always thinking about the vision of the business Market-driven problem solving

12 The Entrepreneur Measurement of Success: outwardlydriven Global view of the business venture Sees venture in terms of all aspects (team, $, management, organization, distribution, marketing, risk, etc.) Goal: find the right alternative to meet the market need, make a profit and then go on

13 Vision of Problem Solving Business Person Problem Solving marketing (profit generation) Inventor Engineer Scientist Problem Solving science (knowledge generation)

14 Keys for scientists to remember Forget about STEM for the beauty of it Science/engineering in this endeavor is a means: Serves as the foundation of an innovation that brings a solution (to a problem) that people will pay for Understand customer is king w/o customer, tech innovations would never see light of day Business leader/entrepreneur gets those customers Marketing is everything Every organization is a business

15 Innovation and the Entrepreneurial Venture

16 Innovation Thoughts In general, entrepreneurial ventures need: Tech innovation -- as the basis of the product or service Business innovation -- to ensure successful delivery of value to the customer

17 What we can learn about innovation from Steve Jobs Not All Innovation Is Equal Technical innovation will earn you lots of adoring fans (think Apple, pre-ipod). Business-model innovation will earn you lots of money (think Apple, post-ipod). Innovate for Cash, Not Cachet If your cool new thing doesn't generate enough money to cover costs and make a profit, it isn't innovation. It's art. Don't Hoard Your Goodies Getting to market on time and at the right price is vital. If that means licensing your idea to an outside manufacturer or marketer, do it. From, Hawn, If He's So Smart...Steve Jobs, Apple, and the Limits of Innovation, Fast Company, 1/04

18 What we can learn about innovation from Steve Jobs Innovation Doesn't Generate Growth. Management Does If you covet awards for creativity, go to Hollywood. Managers get rewarded for results, which come from customers. Attention Deficit Has No Place Here Every innovation worth doing deserves your commitment. Don't leap from one new thing to another. If your creation doesn't appear important to you, it won't be important to anyone else. From Hawn, If He's So Smart...Steve Jobs, Apple, and the Limits of Innovation, Fast Company, 1/04

19 A successful Business Has a vision what do you see for your business? Solves a societal/market prob (innovation) Has a Brand a promise of value Has a plan to fulfill the vision and deliver the value to customers who will pay Has a talented team which understands the value

20 All You Need is Plans Early-stage Business Plan Marketing Plan Financing Plan Business Plan for Commercialization

21 Early Stage Business Plan Goals Precursor to the biz plan Gain knowledge of steps needed to develop a viable technology from an innovation Gain experience in conducting market research Formalize the near term conceptual planning and next steps to move from where the innovation is today towards actually launching a company to provide a product based upon the innovation

22 Entrepreneurial elements The problem you are addressing The solution you propose the innovation The Market who cares and who/how will buy? End user and customer may be different Risk Assessment The Business Model how will you make money? The technological needs to commercialize Intellectual Property The Finance Model and Financials Operations manufacturing, distribution Your Company organization Exit Strategy

23 What is the problem? What is the business, societal, or technological problem that creates the need for a solution? Whose problem is this? How prevalent is the problem? What is the historical basis for the problem? How long has this problem existed? How are people addressing the problem today? Are there solutions to the problem that exist now?

24 What is the innovation? (What is the solution?) How does this innovation actually solve the problem or reduce its effect? How does it work? What does this innovation do? Does it provide a long- or short-term solution? Does it last? Is this a new innovation, or an improved version of a previous solution? What will actually be sold? How is the innovation able to be transferred into a product that people will buy?

25 What is the market? Who will benefit from the innovation? Who are the customers who will buy it? How big is the market? Where is the market located? What are your Strengths, Weaknesses, Opportunities, and Threats (SWOT)? What is the current competition, and what is your competitive advantage? What other firms or organizations might also introduce such an innovation? What are the current/historical industry trends?

26 What is the market? Why has the social or market need been missed up to this point? How will customers respond to the innovation? How will it be marketed? Are there any special challenges that must be addressed to meet a particular market segment? What is the market share for this product?

27 What is the business model? How will your company make money? How will you price your product? How will you sell and market your product? What is your distribution method? How will you obtain the necessary materials and resources (raw, operations support, logistical issues, IP) to be able to produce and sell your product? How will the company stay innovative and competitive?

28 The Finance Model how will you finance it? Your credit cards F,F and Fs Bank loans Angels regionally-based, personal focus Venture Capitalists more than $ Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR) Phase 1 feasibility ($150k) Phase 2 prototype ($1M) Federally-funded, different agencies no repayment

29 Intellectual Property Who owns the IP? What kind of IP do you have? Trade secret Copyright Trademark Patent doesn t protect secret, just excludes others from making and selling it

30 Your exit strategy How will investors get their ROI? Where do you want the business to be in X years? What will be your milestones and schedule? What is the exit strategy? Will you sell your innovation? Will you license it? Will you sell your company? To whom?

31 Resources Abrams, From Passion to Profits Abrams, The Successful Business Plan Timmons, New Venture Creation

32 Go for it! Scientists have distinct skills making you prime candidates for successful entrepreneurs Do your research tech innovation + biz innovation needed for a successful biz Know your market You must sell something Will take more time, energy and possibly $ than you originally thought You will work harder than ever Ok to fail You can do it!

33 AGU Fall Meeting 2013 Fall Meeting website: Job Seekers Thurs, 11/12: One-on-One career consultations available My talks: Monday 12/9: 11:00 AM - 12:00 PM: Transitioning Your Career from Academia to Industry 2:00 PM - 3:00 PM: The Biggest Mistakes You Should Never Make in the Postdoc And How to Avoid or Recover From Them Tuesday 12/10: 12:00 PM - 1:00 PM: Career Lounge talk Open Q&A Wed 12/11: 11:00 AM - 12:00 PM: Accessing Hidden Career Opportunities through Networking 3:00 PM - 4:00 PM: Negotiation strategies and tactics

34 Group Alaina s Alumni ** me for a free resume template! Author: Networking for Nerds (Wiley 2014) Speaking: keynotes, workshops, training Private Career Consulting Writing: white papers, reports, articles