Stages of Entrepreneurship Dr Milton Silver Outline Critical

Stages of Entrepreneurship Dr. Milton Silver

Outline Critical Stages of Entrepreneurship n Major Activities along the stages n Transition to next class n

Basics: Five Best Ways to Get Rich Inheritance n Marry rich n Win a state lottery n Be a show-biz celebrity n Start a company – From Stolze, Start up n

Major Stages of Entrepreneurship Converging on the idea n Business Plan n Business Formation n Growth/ exit n Going public n

A Framework to Think About Ideas for Entrepreneurship

Existing Products Existing Markets Identifiable Markets New Markets Modified Products New Products

Existing Products Women’s Shampoo Modified Products Alternative Existing Greeting Markets Cards Clothes for Overnight Identifiable professional package Markets women delivery Mobile pet Personal New grooming Computers Markets device New Products Solid state still camera Specialty sports car Laser discs

1. Converging on the idea n n n In many cases, the decision start a business precedes the idea Many ideas fall by the way side, since they are either technically not feasible or financially not viable or both So you need to do enough ‘research’ to converge on the idea u Documentary u Experience

Ideas: Intellectual Property The meaning of the term n Four forms of legal defense u Patent u Copyright u Trademark u Trade Secret n Confidentiality Agreements n In many cases, you will need legal help!

2. Business Plan Development Four major elements: n New product/ service development n Business Model n Financial Model n Operating plan

3. Business Formation Type of company: legal form, registration n Financing new product development: u Family and friends u SBIR grants u NCIA awards/ Ben Franklin grants u Angels n Frugal: This is the time for extreme frugality

Example – BAIDA Entrepreneurs To be announced… Incubator n SBDC n Colleges n

4. Growth/exit n n n Difference between life style and growth companies Growth will require u infusion of capital through internally generated funds u Sometimes employment of venture capitalists u Passive investors Growth will also require organization, as taught in business schools (Michael Dell story)

Exit Various reasons n Story of Land’s End n

5. Going Public n Initial Public Offering Probably the point in time the entrepreneur extracts the value of his/her efforts

Major Stages of Entrepreneurship Converging on the idea n Business Plan n Business Formation n Growth/ exit n Going public n