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© Prof Ali Beba – All Rights Reserved
创业动态 and 创业者思维
白 亚力 教授
亚洲家族企业与创业研究中心 副主任
© Prof Ali Beba – All Rights Reserved
Prof. Ali Beba
Associate Director - Center for Asian Family Business and Entrepreneurship
Studies
DYNAMICS OF E’SHIP & MIND-SET OF E’SHKUST Business School–Shenzhen Campus11 December 2011
© Prof Ali Beba – All Rights Reserved
Presentation Topics
1. E’ship: Present Status and Its Future in HK/ China
2. Mind-Set of E’s / Personal Operating Systems
What are the important values, back-ground, culture and must haves for
becoming a successful entrepreneur?
3. Business Plans
What are they and why are they needed? What are the critical elements
in preparation and presentation of a successful Business Plan?
4. E’ship @ HKUST
Dynamics of E’ship & Mind-set of Entrepreneur’s 3
© Prof Ali Beba – All Rights Reserved
1. E’SHIP: PRESENT STATUS AND ITS FUTURE IN HK / CHINA
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© Prof Ali Beba – All Rights Reserved
Description of E’ship
Creates Monetary Wealth for Individuals as well as Large Corporations
Creates Social Impact (Social E’ship) / Social Business (no-loss and no
dividends)
Multidisciplinary and dynamic nature
Creates wealth and new jobs
But: Over 50% of Small Businesses fail within the 1st year and 95% within the first five years
But: Over 50% of Small Businesses fail within the 1st year and 95% within the first five years
Source: US SBA
Dynamics of E’ship & Mind-set of Entrepreneur’s 5
© Prof Ali Beba – All Rights Reserved
Description of E’s: Business people
“Be a seed planter, not a bean counter.”
Dynamics of E’ship & Mind-set of Entrepreneur’s 6
© Prof Ali Beba – All Rights Reserved
E’ship: Grand Opportunity for HK / China
28.0% of 8.89 million will be over 65 in 2039
12.8% of 7.00 million were over 65 in 2009
“ .. City’s sustainable development will hinge on whether its labor force can
boost its productivity, whether the city can open up new areas for
economic growth and whether it can attract more young people to
settle..”Source: HK Census and Statistics Department: Statement by Fung Hing-wang, Commissioner, (30 July 2010)
Dynamics of E’ship & Mind-set of Entrepreneur’s 7
© Prof Ali Beba – All Rights Reserved
E’ship in HK and in China
“...China and HK have the healthiest entrepreneurial anatomies. Their
nascent and new entrepreneurs appear to be the most growth-oriented,
with nearly 20% of them anticipating high-growth...” (*)
Source: (*) Global Entrepreneurship Monitor, 2008
Dynamics of E’ship & Mind-set of Entrepreneur’s 8
© Prof Ali Beba – All Rights Reserved
E’ship Issues
92% of HK’s GDP derived from service sector and 98% of HK’s companies are
micro-enterprises (<50 employees) – Limited resources for R&D and innovation
Family Businesses (represent a significant proportion of business) differ widely
from the West in succession planning, family governance, professionalism and
financing
Insufficient and fragmented R&D, non-structured teaching and small number of
outreach activities in E’ship
Small number of incubation centers and techno parks
Knowledge gap between academicians and practitioners
Dynamics of E’ship & Mind-set of Entrepreneur’s 9
© Prof Ali Beba – All Rights Reserved
E’ship Issues (Continued)
In China it takes 38 days to complete procedures to start a business, compared to
the average of 5.7 days in OECD countries.
Copyrights, patents, brand names, trademarks, and trade secrets appear to be
routinely violated
Overall, China lacks legal, regulatory and Governance transparency
Innovation mostly by foreign investors (Fortune, 5 July 2010)
In addition, China needs a cultural shift. “…innovation can more quickly gain a
foothold in an entrepreneurship-friendly and failure-tolerating culture..”
Overcoming these issues will accelerate China’s transition to greater economic
freedom
© Prof Ali Beba – All Rights Reserved
2. MIND-SET OF E’S / PERSONAL OPERATING SYSTEMS (POS)
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© Prof Ali Beba – All Rights Reserved
Dynamics of Entrepreneurship
1) Product / Service Product /Service Knowledge Compelling Benefits
2) Team Multitasking Self Motivating
5) Mind Setor
Entrepreneur’s Personal Operating System (POS)
3) Management Tools Sales Marketing Financing
4) Working Environment Lean Fast
Dynamics of E’ship & Mind-set of Entrepreneur’s 12
© Prof Ali Beba – All Rights Reserved
Mind-Set: Entrepreneur’s POS
Optimism (positive thinking)
Ability to learn from mistakes
Initiative
Courage
Imagination
Aggressive problem (=opportunities) solvers
Responsibility and ccommitment
Honesty and integrity
Maturity
Dynamics of E’ship & Mind-set of Entrepreneur’s 13
© Prof Ali Beba – All Rights Reserved
Mind-Set: Entrepreneur’s POS (Cont)
Confidence
Determination
Energy
Intelligence
Creativity/innovation
(Quick) Decision Making
Independence
Calculated risk taking
Knowledge (product/market/technology)
Leadership: Ability to Influence
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Dynamics of E’ship & Mind-set of Entrepreneur’s
© Prof Ali Beba – All Rights Reserved
Mind-Set: Entrepreneur’s POS (Cont)
Disciplined and hard working:
“..If I find 10,000 ways something won't work, I haven't failed. I am not
discouraged, because every wrong attempt discarded is another step
forward..."
(Thomas Jefferson)
Dynamics of E’ship & Mind-set of Entrepreneur’s 15
© Prof Ali Beba – All Rights Reserved
Typology of E’ship Mind- Sets: Risk vs. Profit
Level of Personal Financial Risk
Level of
Profite Motive
Low High
Low Risk Avoiding Risk Accepting
Activity Seeking Activity Seeking
High
Risk Avoiding Risk Accepting
Profit Seeking Profit Seeking
Dynamics of E’ship & Mind-set of Entrepreneur’s 16
© Prof Ali Beba – All Rights Reserved
3. BUSINESS PLANS
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© Prof Ali Beba – All Rights Reserved
BPs: E’ship Road-maps Translating Issues/Needs Into Opportunities/Actions
Product/Service (what are we selling?)
Customer (to whom are we selling it?)
Process and compelling benefits (how are we selling it?)
Distribution (how do we reach the customer?)
Finance (what are the prices, costs and investments?)
Administration (and how do we manage all this?)
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Dynamics of E’ship & Mind-set of Entrepreneur’s
© Prof Ali Beba – All Rights Reserved
Maslow's Hierarchy of Needs
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.6. Cognitive needs - knowledge, meaning, etc.7. Aesthetic needs - appreciation and search for beauty, balance, form, etc.8. Transcendence needs - helping others to achieve self actualization
Dynamics of E’ship & Mind-set of Entrepreneur’s 19
© Prof Ali Beba – All Rights Reserved
What Goes in a BP?
1) Description of the business
2) Marketing
3) Finance
4) Management
No single formula for developing a business plan: They are like snowflakes. They look alike, but each one is unique and different.
No single formula for developing a business plan: They are like snowflakes. They look alike, but each one is unique and different.
Dynamics of E’ship & Mind-set of Entrepreneur’s 20
© Prof Ali Beba – All Rights Reserved
Executive Summary – Very Important
Written last
Provides an a reliable snapshot of your company
Explains who you are, what you do and why
Max 2 pages
Purpose:
Give reader a basic understanding about your company: Creates appetite
to learn more about your business
Dynamics of E’ship & Mind-set of Entrepreneur’s 21
© Prof Ali Beba – All Rights Reserved
Tips for Successful BPs
1. BPs should tell a compelling story about your business, explaining who,
what, when, where, how and why
2. BPs should be focused and clear. It’s not about the number of pages or
style of cover
3. The plan should define specific business objectives and goals with
general parameters to guide the organization
4. Writing a business plan should force logic and discipline into a business
5. A good business plan is a living document. It should be updated regularly
Dynamics of E’ship & Mind-set of Entrepreneur’s 22
© Prof Ali Beba – All Rights Reserved
4. E’SHIP @ HKUST
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© Prof Ali Beba – All Rights Reserved 24
Five career tracks1. General Management
in China2. Finance3. Marketing4. Consulting5. Entrepreneurship
HKUST MBA Career Tracks
Dynamics of E’ship & Mind-set of Entrepreneur’s
© Prof Ali Beba – All Rights Reserved
Best E’ship Programs are Based on:
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© Prof Ali Beba – All Rights Reserved
c) Outreach Activities
Partnerships with other schools allowing access to their e’ship programs
Number of clubs and organizations they offer for students
Number of competitions (BP, innovation) as well as number of officially
sponsored mentorship programs they have
IMPORTANT TO NOTE: ANNUAL HKUST BP COMP (TARGET: MAY 2011)
Amount of entrepreneurial scholarship offerings they provide
Intensity of outreach activities with strong NGOs and governmental bodies
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© Prof Ali Beba – All Rights Reserved
Top 12 E’Ship Programs (U.S. News Ranking)1. Babson College
2. Stanford
3. MIT (Sloan)
4. Harvard
5. Pennsylvania (Wharton)
6. Indiana (Kelley)
7. Berkeley (Haas)
8. Southern Cal (Marshall)
9. Texas-Austin (McCombs)
10. Arizona (Eller)
11. Northwestern (Kellogg)
12. Michigan (Ross)
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Goal of HKUST E’ship track: Be a member of this list
© Prof Ali Beba – All Rights Reserved
Existing Electives for E’ship Track Spring 2011
1. Venture Capital and Private Equity (FINA 539) (2 credits)
2. Entrepreneurial Finance and Family Business (FINA 691I) (2 credits)
3. International Growth (MGMT 650H) (1 credit)
4. Family Business (SBMT 601R) (1 credit)
Detailed content: http://mba.ust.hk/ftmba/program/electives.htm)
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Dynamics of E’ship & Mind-set of Entrepreneur’s
© Prof Ali Beba – All Rights Reserved
New Electives for E’ship Track(2 Credits)
1. Venture Capital Perspective on E’ship: What E’s Need to Know About
VCs? (Prof. Po Chi Wu)
2. Corporate E’ship and New Business Venturing (Dr. Wouter Stam)
3. E’ship: Power of Business Plans for Creation of Wealth and New Jobs
(Prof. Ali Beba)
_________
1. Strategy Workshop for E’s – (Dr. Chris Doran) (open to BP competing
students only, no credit)
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Dynamics of E’ship & Mind-set of Entrepreneur’s
© Prof Ali Beba – All Rights Reserved
APPENDICES
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© Prof Ali Beba – All Rights Reserved
DETAILS FOR BUSINESS PLANS
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© Prof Ali Beba – All Rights Reserved
Title Page
Company Name and its coordinates
(Addres, Phone/Fax Numbers, e-mail address, internet site)
Date
Prepared by…
Dynamics of E’ship & Mind-set of Entrepreneur’s 32
© Prof Ali Beba – All Rights Reserved
Table of Contents
1. Table of Contents……………………………………………Pg. No.
2. Executive Summary…………………………………………
3. Business Description & Vision…………………………
4. Definition of the Market…………………………………
5. Description of Products and Services………………
6. Organization & Management…………………………
7. Marketing and Sales Strategy…………………………
8. Financial Management……………………………………
9. Appendices………………………………………………………
Dynamics of E’ship & Mind-set of Entrepreneur’s 33
© Prof Ali Beba – All Rights Reserved
Executive Summary
Written last
Provides an a reliable snapshot of your company
Explains who you are, what you do and why
Max 2 pages
Purpose:
Give reader a basic understanding about your company: Creates appetite
to learn more about your business
Dynamics of E’ship & Mind-set of Entrepreneur’s 34
© Prof Ali Beba – All Rights Reserved
Business Description
Mission: Purpose of Business
Vision: Statement on company growth
Business goals and objectives
Brief history of the business
Key company managers /employees
Purpose:
Describe what the business stands for
Tell your perception of the company’s growth potential
Outline specific goals and objectives of the business
Give background information about the company
Dynamics of E’ship & Mind-set of Entrepreneur’s 35
© Prof Ali Beba – All Rights Reserved
Definition of the Market
Describe business industry and outlook
Define critical needs of your perceived or existing market
Identify your target market
Provide a general profile of your targeted clients
Describe what share of the market you currently have and/or anticipate
Purpose:
Provide basic information about the industry and customer needs fulfilled
Define the scope and share of your business market, plus target customers
Dynamics of E’ship & Mind-set of Entrepreneur’s 36
© Prof Ali Beba – All Rights Reserved
Description of Products and Services
Specifically describe all of your products and services
Explain how your products and services are competitive
If applicable, reference a picture/ brochure of your p’s/services, which would
be included in the BP’s appendix
Purpose:
Explain why you are in business
What your products and services are and how much they sell for
How and why your products & services are competitive
Dynamics of E’ship & Mind-set of Entrepreneur’s 37
© Prof Ali Beba – All Rights Reserved
Organization & Management
Provide description how your company is organized+ organigram
Describe legal structure of your business (partnership, corporation, etc.)
Identify necessary or special licenses and/or permits you need
Provide brief bio’s of key managers
Purpose:
Describe legal form of ownership
Who the leaders are in your business as well as their roles
Flow of operations within the firm (split of roles & responsibilities)
Dynamics of E’ship & Mind-set of Entrepreneur’s 38
© Prof Ali Beba – All Rights Reserved
Marketing and Sales Strategy
Identify and describe your market – who your customers are and what the
demand is for your products & services
Describe your channels of distribution
Explain your sales strategy, specific to pricing, promotion, products and place
(4Ps)
Purpose:
Explain who your market is and how you will reach it
How will you apply pricing, promotion, product diversification and channel
distribution to sell your products and services
Dynamics of E’ship & Mind-set of Entrepreneur’s 39
© Prof Ali Beba – All Rights Reserved
Financial Management
New Business Estimate of start-up costs Projected balance sheet (1 yr forward) / Projected income statement (1 yr forward) /
Projected Cash Flow Statement (12 months forward)
Existing Business Balance sheets (last 3 years) / Income statements (last 3 years) / Cash flow statement
(12 months)
Purpose Provide the reader with a good understanding of your financial capacity and/or
projections Show that: NPV >0; Pay-Back Period: Acceptable; IRR > inflation rate
Dynamics of E’ship & Mind-set of Entrepreneur’s 40
© Prof Ali Beba – All Rights Reserved
Appendices
Company brochures
Resumes of key managers/employees
List of business equipment (if applicable)
Copies of press articles and advertisements (if available)
Pictures of your business location and products (optional)
Information supporting growth of industry and/or products (optional)
Key business agreements, such as lease, contracts, etc. (optional)
Dynamics of E’ship & Mind-set of Entrepreneur’s 41
© Prof Ali Beba – All Rights Reserved
Political, Economic, Social and Technological (PEST) Market Analysis Tool
Simple & quick business measurement tool for understanding market
growth / decline, the position, potential and direction for a business.
Used for business and strategic planning, marketing planning, business
and product development and research reports
Four key perspectives (all external)
Source: http://www.businessballs.com/
Dynamics of E’ship & Mind-set of Entrepreneur’s 42
© Prof Ali Beba – All Rights Reserved
Political, Economic, Social and Technological (PEST) Market Analysis ToolPoliticalecological/environmentalcurrent/ future legislationinternational legislationregulatory bodies and processesgovernment policiesgovernment term and changetrading policiesfunding, grants and initiativeshome market pressure-groupsinternational pressure- groupswars and conflicts
Economicalhome economy economy trendsoverseas economies general taxation taxation specific to product/servicesseasonality issuesmarket/trade cyclesspecific industry factorsmarket routes trendsdistribution trendscustomer/end-usersinterest/ exchange ratesinternational trade and monetary issues
Sociallifestyle trendsdemographicsconsumer attitudes and opinionsmedia viewslaw changes affecting social factorsbrand, company, technology imageconsumer buying patternsfashion and role modelsmajor events and influencesbuying access and trendsethnic/religious factorsadvertising and publicityethical issues
Technologicalcompeting technology developmentresearch fundingassociated/dependent technologiesreplacement technology/solutionsmaturity of technologymanufacturing maturity and capacityinformation and communicationsconsumer buying mechanisms/technologytechnology legislationinnovation potentialtechnology access, licensing, patentsintellectual property issuesglobal communications
Source: http://www.businessballs.com/
Dynamics of E’ship & Mind-set of Entrepreneur’s 43
© Prof Ali Beba – All Rights Reserved
SWOT TemplatePOSITIVE NEGATIVE
Strengths (Maintain, Build and Leverage)
Weakness (Remedy or Exit)
Opportunities (Prioritize and Optimize),
Threats (Counter)
INTE
RNAL
EXTE
RNAL
Dynamics of E’ship & Mind-set of Entrepreneur’s 44
© Prof Ali Beba – All Rights Reserved
SWOT Template Advantages of proposition? Capabilities? Competitive advantages? USP's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioral? Management cover, succession? Philosophy and values?
• Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations? Processes and systems, etc? Management cover, succession?
Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USP's? Tactics: eg, surprise, major contracts? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences
Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy - home, abroad? Seasonality, weather effects?
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