ENTREPRENEURSHIP. Monica Zimmerman, Ph.D., CPA West Chester University. Good Ideas - Monica Zimmerman
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1 ENTREPRENEURSHIP Monica Zimmerman, Ph.D., CPA West Chester University 1
2 Entrepreneurship Creation of new businesses Small businesses Sole proprietorships Family owned businesses High growth businesses Franchise ownership Innovative established businesses Intrapreneurship 2
3 Intrapreneurship Creation and/or innovation within an existing business Examples of intrapreneurial companies 3M Apple Computer Need for intrapreneurship 3
4 Today we will discuss entrepreneurship in terms of The creation of a new business 4
5 IDEA GENERATION HOW IT ALL BEGINS 5
6 ENTREPRENEURIAL PROCESS 1. Idea Generation 2. Feasibility Study 3. Business Plan 6
7 IDEA GENERATION Characteristics of good entrepreneurial business ideas Sources of good entrepreneurial business ideas Ideas to avoid Group exercise 7
8 IDEA GENERATION Characteristics of good entrepreneurial business ideas Sources of good entrepreneurial business ideas Ideas to avoid Group exercise 8
9 GOOD ENTREPRENEURIAL BUSINESS IDEAS ARE: MARKET DRIVEN Solve a problem Find a market need Customer focused not product driven Targets an identified sizeable market segment 9
10 GOOD ENTREPRENEURIAL BUSINESS IDEAS ARE: FEASIBLE Attractive there is a demand Achievable it can be done Durable it lasts Value creating it is worth something Safe Affordable 10
11 GOOD ENTREPRENEURIAL BUSINESS IDEAS ARE: UNIQUE Faster/Better/Cheaper Differentiated (vs. commodity) They have a Special Sauce 11
12 GOOD ENTREPRENEURIAL BUSINESS IDEAS ARE: FUNDABLE Revenue stream Manageable risk Sustainable - Market exists with frequency of purchase Scaleable or Replicable Barriers to entry Growth potential Product pipeline Exit plan Innovative 12
13 INNOVATIVE Radical vs. Incremental 1 Invention Extension Duplication Synthesis 1 Kuratko & Hodgetts, Entrepreneurship: Theory, Process, and Practice 13
14 GOOD ENTREPRENEURIAL BUSINESS IDEAS ARE OFTEN BASED ON: Intellectual Property Copyrights Trademarks Patents Trade Secrets 14
15 IDEA GENERATION Characteristics of good entrepreneurial business ideas Sources of good entrepreneurial business ideas Ideas to avoid Group exercise 15
16 SOURCES OF GOOD ENTREPRENEURIAL IDEAS Talk to friends, family and other contacts Read Examine surroundings Consider your Hobbies/activities Education Work Experience Personal Life Network 16
17 SOURCES OF GOOD ENTREPRENEURIAL IDEAS Known needs not effectively met Geographic or business niches not currently served or under served niches Changes in Market Industry Legal/ Political factors Technology factors 17
18 Successful Entrepreneurs recognize an opportunity while it is still taking shape Skate to where the puck will be not where it is or it was. O Malia & & Whistler,
19 IDEA GENERATION Characteristics of good entrepreneurial business ideas Sources of good entrepreneurial business ideas Ideas to avoid Group exercise 19
20 GENERATING A GOOD IDEA Avoid Unfavorable industries Unfavorable markets Crusades N of one One Hit Wonders Unsafe or illegal products/services 20
21 IDEA GENERATION Characteristics of good entrepreneurial business ideas Sources of good entrepreneurial business ideas Ideas to avoid Group exercise 21
22 GROUP EXERCISE Think of a business idea Think of an everyday problem and the solution for it Be creative - No idea is too obscure/crazy/simple One idea per group 5 minutes 22
23 IDEA GENERATION Characteristics of good entrepreneurial business ideas Sources of good entrepreneurial business ideas Ideas to avoid 23
24 ENTREPRENEURIAL PROCESS 1. Idea Generation 2. Feasibility Study 3. Business Plan 24
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