Stages of Entrepreneurship

Dr. Milton Silver

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

Basics: Five Best Ways to Get Rich

Inheritance Marry rich Win a state lottery Be a show-biz celebrity Start a company From Stolze, Start up

Major Stages of Entrepreneurship

Converging on the idea Business Plan Business Formation Growth/ exit Going public

A Framework to Think About Ideas for Entrepreneurship

Existing Products
Existing Markets

Modified Products

New Products

Identifiable Markets New Markets

Existing Products

Modified Products

New Products

Alternative Existing Greeting Markets Cards Clothes for Overnight Identifiable professional package Markets women delivery Mobile pet Personal New grooming Computers Markets device

Womens Shampoo

Solid state still camera Specialty sports car Laser discs

1. Converging on the idea

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 Documentary Experience

Ideas: Intellectual Property

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

2.Business Plan Development

Four major elements: New product/ service development Business Model Financial Model Operating plan

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

Example BAIDA Entrepreneurs

To be announced Incubator SBDC Colleges

4.Growth/exit

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

Exit
Various reasons Story of Lands End

5. Going Public

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 Business Plan Business Formation Growth/ exit Going public