Instilling The Entrepreneurial Spirit at Toyota

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Entrepreneurship Boot Camp Opportunity
Recognition
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Mind Buster How did Paul Orfalea get the idea
for Kinkos? How did Fred Smith get the idea for
Fed Express?
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Opportunity Stoppers
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Getting Over Your Success

• You got here by knowing the rules and doing what
  was asked a formula approach coloring inside
  the lines
• You have been trained to expect a correct answer
• Students ask me if I like their idea. I tell
  them no one knows if it is good.
• Rule 1 Entrepreneurship is not a formula.

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Your Mindset

• Need to be curious, perceptive, open to new, open
  to change, prepared to listen without challenge
• Must tolerate and then thrive on ambiguity
• Look for opportunity in situations that appear to
  be negative on the surface
• Rule 2 Slow down and see the opportunity

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Ideas Dont Make Opportunities

• Thousand spend time on ideas. Its not about
  ideas, it is about customers.
• Many exciting successes come from modest
  offerings, often imitating other things.
• People and situations create ideas, isolation
  does not.
• Rule 3 Dont spend time trying to come up with
  a new widget, spend time out there.

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Your Knowledge Base Counts

• Game is not played at 30,000 feet
• Prior experience and industry knowledge account
  for 87 of successes
• Most entrepreneurs are not successful on their
  first venture
• You need to know the territory
• Rule 4 Get physical fast, get into the hunt

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Ideas come everyday

• You see them in different form
• Ask people their business problems
• People come to you to have you create their
  solution the organizational entrepreneur
• Rule 5 Develop a filtering process to
  determine value of idea

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Inventory Yourself

• How open are you to embarrassment?
• Can you tolerate rejection?
• Will you quit before it is time?
• What is your tolerance of failure?
• Rank your level of Perseverance and Perception

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Prior knowledge and the Discovery of
Entrepreneurial Opportunities
Scott Shane

• Shane shares the result of his research which
  suggests that entrepreneurs discovery is
  dependent on what they know (often referred to as
  industry knowledge) and that most opportunity
  recognition is by chance and not by a methodical
  search.
• In more common terms, entrepreneurs use the
  phrase Who can spot a twenty-dollar bill?
• Someone who knows what it looks like and is
  looking for it.

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Why Wilbur and Orville Wright? Some thoughts on
the Wright Brothers and the process of invention
Tom
Crouch

• How can two brothers who owned a bicycle shop in
  Ohio be responsible for the first flight of man
  at Kitty Hawk, North Carolina?
• Several major efforts by the best research
  universities and companies had failed to answer
  the riddle of man flight.
• The article contains a great deal about their
  home environment and early work experience both
  factors found often in successful entrepreneurs.

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Why the Wright Brothers were the first to fly.
Known as Intelligent Failure.
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Consider Stages

• Four stages of entrepreneurial growth

Stage One Idea to First Customer
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Stage 1 - idea to first customer

• Total focus on customer
• Never assume you are the customer
• Your market is not your customer
• Big guys fail 99 of the time
• Why will E win??
• Because you are driving to a single customer, not
  to a market share

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Consider Stages

• Four stages of entrepreneurial growth

Stage Two First Customer to Multiple Customers
Stage One Idea to First Customer
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Stage 2 - first to multiple customers

• Initial customers provide credibility
• Growing from one to many is first sign of change
• move from I to We
• execution team starts to form
• selling benefit through others

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Consider Stages

• Four stages of entrepreneurial growth

Stage Three Multiple Customers to Multiple
Customer Multiple Products
Stage Two First Customer to Multiple Customers
Stage One Idea to First Customer
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Stage 3 - multiple customers to multiple
customers and multiple products

• Benefit offerings more critical
• Establish needs and fulfill them
• Dont revert to classic management

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Consider Stages

• Four stages of entrepreneurial growth

Stage Four Multiple Customers to Multiple
Products to Harvest \ Reinvention
Stage Three Multiple Customers to Multiple
Customer Multiple Products
Stage Two First Customer to Multiple Customers
Stage One Idea to First Customer
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Stage 4 - multiple to harvest \ reinvention

• Policies and procedures - necessary evil
• Two primary options - sell or reinvent and
  reposition

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Reading ReviewNew Venture Ideas do not
overlook experience factor
Karl H. Vesper

• What are the best sources for new ideas? Vesper
  gives a checklist to all who are looking for the
  opportunity they can turn into a venture.
• Vesper confirms the importance of know what you
  know what some call industry knowledge and what
  he calls experience.

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• Tom OMalia Orfalea Chair for
  Entrepreneurial Studies 213.821.0917 tom.omali
  a_at_marshall.usc.edu
• Lloyd Greif Center Marshall School of
  Business University of Southern
  California Bridge Hall One Los Angeles, CA
  90089-0801