Business 5600

1
Business 5600

• Course Introduction
• Winter, 2004

2
Course Objective

• To enhance the understanding of the process that
  is followed in establishing a new business.
• To provide students with the opportunity to
  experience the process of new venture creation
• To assist student in evaluating entrepreneurship
  as a potential career.

3
Pedagogy

• Focus is on process and the application of the
  business knowledge acquired in other courses
• Much of the work is done in groups of four.
• Group meetings with course instructor are held in
  lieu of class throughout the course
• No text - information packages available on web
  page

4
Evaluation Scheme

• Participation 15
• Entrepreneur biography 20
• Opportunity evaluation 15
• Marketing plan 15
• Financial plan 15
• Final business plan 20

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Entrepreneur Interview

• 15 pages, 12 point font, single-spaced
• Focus paper on
• Business description
• Characteristics and attributes of entrepreneur
• Problems and issues during startup phase

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Venture Plan

• 30 page maximum
• Real or simulated business
• Follow the process presented during the course
• Activities must be real, not simulated
• Sections of the plan are due throughout the
  semester
• Final plan due at end of semester

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Venture Plan

• Plan will include the marketing and financial
  sections submitted earlier in addition to other
  material as required
• Revisions to these sections are permitted.

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Venture Creation Process
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Types of Business Owners

• Self - employed, full or part time
• Small business owners
• Entrepreneurs
• Examples - Ray Kroc, Frank ODea, Greg Clarke,
  Craig Dobbin

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Venture Growth Stages

• Innovators - come up with new or innovative
  products or services
• Entrepreneurs - bring the business from concept
  to stability
• Managers - operate the stable business

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Role of the Entrepreneur

• To identify opportunities
• To evaluate and select opportunities
• To assemble resources - financial and other
• To grow the business to stability

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What After Stability?

• Companies may be sold
• Companies may die
• Professional management is acquired

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Myths of entrepreneurs

• Entrepreneurs are born, not made
• Anyone can start a business, its all luck and
  guts
• Entrepreneurs are gamblers
• Entrepreneurs are rugged individualists
• You need lots of money

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Sources of Business Ideas

• Personal education/training
• Personal interests
• Hobbies
• Copycat
• Group brainstorming

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Team Building
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Some Findings

• In the USA, of the fasted growing Inc 500
  companies almost 2/3 were started by teams.
• Almost 60 of Americas fastest growing private
  cos have 2 or more partners
• 30 of individually founded cos reach annual
  sales of 6M whereas 70 of team founded firms
  reach this level.

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The Facts

• No such thing as a perfect manager
• No such thing as a perfect entrepreneur
• Different personality characteristics, knowledge
  and skills are needed to be successful.

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Problems with team formation

• Lack of start up experience
• Balancing team size
• Finding the right combination of expertise
• Finding the right combination of management
  skills
• Conflicting decision making and management styles
  
• Dilution of ownership