Beruflich Dokumente
Kultur Dokumente
Creativity
Uncertainty
Team (3)
Leadership
Capital market context
Founder (1)
90% of opportunities arise from your employment 8-10 years of experience typical
Build an organization You do need money, but not necessarily a lot of money, to get started
A core, fundamental entrepreneurial process Central themes or driving forces dominate this highly dynamic entrepreneurial process
It is opportunity driven It is driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious and creative It depends on the fit and balance among these It is integrated and holistic
What is an Opportunity?
It has the qualities of being attractive, durable, and timely and is anchored in a product or service that creates or adds value for the end user (or buyer). Opportunities arise from
Societal change Market & regulatory dynamics & change Technology change
What is an Opportunity?
O P P O R T U N I T Y
The Opportunity
Market Demand
Margin Analysis
Reachable customer Payback < 1 year Share Growth 20%+ and Durable Emerging/Fragmented $50 million => 1 billion Barriers to entry
Market Structure/Size
Low cost provider Low capital requirements Break even 1-2 years Value added increase of P/E ratio
The Opportunity
A good idea is not necessarily a good opportunity. For every 100 ideas presented to investors, usually fewer than 4 get funded. An investor has to be able to quickly evaluate whether potential exists and to decide how much time and effort to invest. Underlying market demand drives the value creation potential. The greater the growth, size, durability, and robustness of the gross and net margins and free cash flow, the greater the opportunity.
Basic Resources
One of the most common misconceptions is that you first need to have all the resources in place, especially the money, to succeed. Money follows high potential opportunities conceived of and led by a strong management team.
Successful entrepreneurs devise ingeniously creative and stingy strategies to marshal and gain control of resources Example Howard Head (metal ski) Bootstrapping can create a significant competitive advantage. Think Cash Last! Such strategies encourage a discipline of leanness, where everyone knows that every rupee counts.
I prefer a Grade A entrepreneur and team with a Grade B idea, over a Grade B team with a Grade A idea
An Entrepreneurial Leader
Relevant experience and track record Motivation to excel Commitment, Determination and Persistence Tolerance of risk, ambiguity, and uncertainty Creativity Team locus of control Adaptability Opportunity obsession Leadership and courage Communication
Concept of fit and balance between and among the three forces When envisioning a companys future, the entrepreneur can ask:
What pitfalls will I encounter to get to the next boundary of success? Will my current team be large enough? Are my resources sufficient (or too abundant)?
Some of the most successful investments ever were turned down by numerous investors before the founders received backing. The unique combination of people, opportunity, and resources coming together at a particular time may determine a ventures ultimate chance for success.
ENLIGHTENED SERENDIPITY
Being in the right place At the right time, Recognizing it, and