ITM C9 Supp 2015

8/15/2019 ITM C9 Supp 2015

1/36

Copyright © 2014 Pearson Education, Ltd

CREATING ANDLEADING

ENTREPRENEURIALVENTURES MODULE

Copyright © 2016 Pearson Education, Ltd. 9a-1

8/15/2019 ITM C9 Supp 2015

2/36


THE CONTEXT OFENTREPRENEURSHIP

Entrepreneurship – the process of starting

new usinesses, genera!!y in response to

opportunities.

" Entrepreneurial ventures – organi#ationsthat pursue opportunities, are characteri#ed

y inno$ati$e practices, and ha$e growth and

profitai!ity as their %ain goa!s.


8/15/2019 ITM C9 Supp 2015

3/36


THE CONTEXT OF ENTREPRENEURSHIP(CONT.)

Small business – an organization tati! in"#$#n"#nt%& o'n#" o$#rat#"an" nan*#"+ a! ,#'#r tan -

#/$%o#!+ "o#!n0t n#*#!!ari%&#ngag# in an& n#' or inno1ati1#$ra*ti*#!+ an" a! r#%ati1#%& %itt%#

i/$a*t on it! in"2!tr&.


8/15/2019 ITM C9 Supp 2015

4/36


3H4 IS ENTREPRENEURSHIPI5PORTANT6

&nno$ation

– Engage in the creati$e destruction process

– 'ct as agents of change

" (u%er of (ew )tartups

– &ncreasing nu%ers of new fir%s

" *o Creation

– (ew $entures create 60+0- of the net new os


8/15/2019 ITM C9 Supp 2015

5/36


THE ENTREPRENEURIAL PROCESS

Entrepreneurs %ust address four /ey

steps as they start and %anage their

entrepreneuria! $entures.

1. Ep!oring the entrepreneuria! contet

2. &dentifying opportunities and possi!e

co%petiti$e ad$antages

. )tarting the $enture4. anaging the $enture


8/15/2019 ITM C9 Supp 2015

6/36


3HAT DO ENTREPRENEURS DO6

(o two entrepreneurs are eact!y the

sa%e. 3enera!!y, entrepreneurs Create so%ething new, so%ething different.

)earch for change, respond to it, and ep!oit it.

5esearch feasii!ityunco$ering usiness ideas,

!oo/ing at co%petitors, and ep!oring financing

options.

Launch and %anage new $entures.


8/15/2019 ITM C9 Supp 2015

7/36


SOCIAL RESPONSI7ILIT4 AND ETHICSISSUES

7ow i%portant are ethics and socia!

responsii!ity issues to entrepreneurs8 – 9:;-< in a study of s%a!! co%panies e!ie$ed that

de$e!oping a positi$e reputation and re!ationshipin co%%unities where they do usiness is

i%portant for achie$ing usiness goa!s.

– 7owe$er, =0 percent ad%itted that they fai!ed to

consider co%%unity goa!s in their usiness p!ans.


8/15/2019 ITM C9 Supp 2015

8/36


START8UP AND PLANNING ISSUES

&dentifying En$iron%enta! >pportunities and

Co%petiti$e 'd$antage – Entrepreneurs %ust e a!e to identify en$iron%enta!

opportunities.

– Peter ?ruc/er identified se$en potentia! sources of

opportunity that entrepreneurs %ight !oo/ for in the eterna!

contet

" the unepected, the incongruous, the process need,

industry and %ar/et structures, de%ographics, changesin perception, and new /now!edge.


8/15/2019 ITM C9 Supp 2015

9/36


START8UP AND PLANNING ISSUES(CONT.)

5esearching the @entureAs Beasii!ity – G#n#rating I"#a! – !o2r*#! o, t#ir i"#a! ar#

2ni92# an" 1ari#".

– 3or:ing in t# !a/# in"2!tr& i! a /a;or !o2r*# ,or/an& i"#a!.

– 3at !o2%" #ntr#$r#n#2r! %oo: ,or6

" %i/itation! o, 'at0! *2rr#nt%& a1ai%a

8/15/2019 ITM C9 Supp 2015

10/36


EXHI7IT EV8-EVALUATING POTENTIAL IDEAS

:a + 10Copyright © 2016 Pearson Education, Ltd. 9a-10

8/15/2019 ITM C9 Supp 2015

11/36



E$a!uating &deas

– Feasibility study – an ana!ysis of the

$arious aspects of a proposed

entrepreneuria! $enture designed to

deter%ine its feasii!ity.


8/15/2019 ITM C9 Supp 2015

12/36


EXHI7IT EV8?FEASI7ILIT4 STUD4


8/15/2019 ITM C9 Supp 2015

13/36


EXHI7IT EV8?FEASI7ILIT4 STUD4 (CONT.)


8/15/2019 ITM C9 Supp 2015

14/36


EXHI7IT EV8?FEASI7ILIT4 STUD4 (CONT.)


8/15/2019 ITM C9 Supp 2015

15/36



5esearching the @entureAs Beasii!ity

Co%petitors, so%e possi!e uestions

" Dhat types of products or ser$ices are co%petitors offering8

" Dhat are the %aor characteristics of these products or

ser$ices8

" Dhat are their productsA strengths and wea/nesses8

" 7ow do they hand!e %ar/eting, pricing, and distriuting8

" Dhat do they atte%pt to do different!y fro% other co%petitors8


8/15/2019 ITM C9 Supp 2015

16/36


RESEARCHING THE VENTURE0SFEASI7ILIT4@CO5PETITORS (CONT.)

uestions aout co%petitors . . .

" ?o they appear to e successfu! at it8 Dhy or why not8

" Dhat are they good at8

" Dhat co%petiti$e ad$antage9s< do they appear to ha$e8

" Dhat are they not so good at8

" Dhat co%petiti$e disad$antage9s< do they appear to ha$e8

" 7ow !arge and profita!e are these co%petitors8


8/15/2019 ITM C9 Supp 2015

17/36



5esearching the @entureAs Beasii!ity

Binancing" Fecause funds !i/e!y wi!! e needed to start

the $enture, an entrepreneur %ust researchthe $arious financing options.

" enture !apitalists – eterna! euity

financing pro$ided y professiona!!y

%anaged poo!s of in$estor %oney.


8/15/2019 ITM C9 Supp 2015

18/36


RESEARCHING THE VENTURE0SFEASI7ILIT4@FINANCING (CONT.)

"n#el $nvest%rs – a pri$ate in$estor 9or

group of pri$ate in$estors< who offers

financia! ac/ing to an entrepreneuria!

$enture in return for euity in the $enture.

" $nitial publi! %&&erin# '$()* – the first

pu!ic registration and sa!e of a

co%panyAs stoc/.


8/15/2019 ITM C9 Supp 2015

19/36


EXHI7IT EV8POSSI7LE FINANCING OPTIONS


8/15/2019 ITM C9 Supp 2015

20/36



P!anning the @enture ?e$e!oping a

Fusiness P!an

– +usiness plan – a written docu%ent that

su%%ari#es a usiness opportunity and

defines and articu!ates how the identified

opportunity is to e sei#ed and ep!oited.


8/15/2019 ITM C9 Supp 2015

21/36


PLANNING THE VENTURE@DEVELOPINGA 7USINESS PLAN (CONT.)

' good usiness p!an co$ers si %aor

areas

" 'na!ysis of opportunity

" 'na!ysis of the contet

" ?escription of the usiness

" Binancia! data and proections

" )upporting docu%entation

:a + 21Copyright © 2016 Pearson Education, Ltd. 9a-21

8/15/2019 ITM C9 Supp 2015

22/36


ORGANIBING ISSUES

Lega! Bor%s of >rgani#ation

– S%le pr%priet%rship – a for% of !ega!

organi#ation in which the owner %aintains

so!e and co%p!ete contro! o$er the usinessand is persona!!y !ia!e for usiness dets.

– ,eneral partnership – a for% of !ega!

organi#ation in which two or %ore usiness

owners share the %anage%ent and ris/ of the

usiness.


8/15/2019 ITM C9 Supp 2015

23/36


LEGAL FOR5S OF ORGANIBATION(CONT.)

imited liability partnership '(* – a for% of

!ega! organi#ation consisting of genera! partner9s<

and !i%ited !iai!ity partner9s

8/15/2019 ITM C9 Supp 2015

24/36



S !%rp%rati%n – a specia!i#ed type of

corporation that has the regu!ar characteristics of

a C corporation ut is uniue in that the owners

are taed as a partnership as !ong as certaincriteria are %et.

imited liability !%mpany '.* – a for% of

!ega! organi#ation thatAs a hyrid etween a

partnership and a corporation.


8/15/2019 ITM C9 Supp 2015

25/36



)peratin# a#reement – the docu%ent

that out!ines the pro$isions go$erning the

way an LLC wi!! conduct usiness.


8/15/2019 ITM C9 Supp 2015

26/36


EG7&F&H E@+4

LE3'L B>5) >B FI)&(E)) >53'(&J'H&>()


8/15/2019 ITM C9 Supp 2015

27/36


ORGANIBING ISSUES (CONT.)

>rgani#ationa! ?esign and )tructure

– >rgani#ationa! design decisions in

entrepreneuria! $entures re$o!$e around the

si /ey e!e%ents of organi#ationa! structure" wor/ specia!i#ation, depart%enta!i#ation, chain of

co%%and, span of contro!, a%ount of

centra!i#ationKdecentra!i#ation, and the a%ount of

for%a!i#ation.


8/15/2019 ITM C9 Supp 2015

28/36



7u%an 5esource anage%ent &ssues in

Entrepreneuria! @entures

– E%p!oyee 5ecruit%ent – one of the iggest

cha!!enges that entrepreneurs face.

– E%p!oyee 5etention – 'n entrepreneur wants

to /eep the peop!e he or she has hired and

trained.


8/15/2019 ITM C9 Supp 2015

29/36



)ti%u!ating and a/ing Changes –

during any type of organi#ationa! change, an

entrepreneur %ay a!so ha$e to act as chief

coach and cheer!eader." Hhe &%portance of Continuing &nno$ation –

organi#ations %ust continua!!y inno$ate new

products and ser$ices if they want toco%pete successfu!!y.


8/15/2019 ITM C9 Supp 2015

30/36


LEADING ISSUES

Persona!ity Characteristics of

Entrepreneurs

– (r%a!tive pers%nality – a persona!ity trait

that descries indi$idua!s who are %ore prone

to ta/e actions to inf!uence their en$iron%ents.

– E%power%ent – gi$ing e%p!oyees the power

to %a/e decisions and ta/e actions on theirown to so!$e pro!e%s.


8/15/2019 ITM C9 Supp 2015

31/36


LEADING ISSUES (CONT.)

Leading the @enture

– Hhe way an entrepreneur !eads the $enture

shou!d e %uch !i/e the a## !eader drawing

the est out of other indi$idua!s, e$en gi$en

the unpredictai!ity of the situation.

– Leading E%p!oyee Dor/ Hea%s –

entrepreneurs %ust shift fro% the traditiona!co%%and+and+contro! sty!e to a coach+and+

co!!aoration sty!e.


8/15/2019 ITM C9 Supp 2015

32/36


CONTROLLING ISSUES

P!anning for 3rowth – I"#a%%& i! $art o, t# 1#nt2r#0! o1#ra%%

8/15/2019 ITM C9 Supp 2015

33/36


EXHI7IT EV8 ACHIEVING A SUPPORTIVE

GRO3TH8ORIENTED CULTURE


8/15/2019 ITM C9 Supp 2015

34/36

8/15/2019 ITM C9 Supp 2015

35/36


EXITING THE VENTURE

arvestin# – eiting a $enture when an

entrepreneur hopes to capita!i#e financia!!y

on the in$est%ent in the $enture.


8/15/2019 ITM C9 Supp 2015

36/36


5ANAGING PERSONAL LIFECHOICES AND CHALLENGES

>ne of the %ost i%portant things an

entrepreneur can do is become a good time

manager.

" 'nother suggestion is to seek

professional advice in those areas of

usiness where itAs needed.

" &tAs i%portant to deal with conflicts asthey arise.

Copyright © 2016 Pearson Education Ltd 9a 36

Documents

ITM C9 Supp 2015