..

Entrepreneurship is the process of designing,launching & running a new

business which was initially small.The people who create these business
are called entrepreneurs
..Area of Interest->You lose track of time while doing->You have the pre
requisite talent/skills to do this.->You take initiative
..A person is said to be in the state of flow when they do something they
love.This is very much diff frm ours liesure activities.

..Effectuation-It is an entrepreneurial thought process ie a common set

of principles & techniques that these people apply in order to solve
prblms.It focus on what is doable and design a framework to make better
decision.These are of types namely:
a.Bird in Hand-Start with your what you have initially.
b.Affordable loss-What we can afford to loose at each step.Don't look
for large or nothing kind of opportunities ie they
don't gamble.
c.Lemonade-When life gives you lemons make lemonade.Turn prblms into
opportunities.
d.Patchwork Quilt-Form Partnership
e.Pilot in the plane-Be your own boss

..Type of entrpreneurs:
Maker Merchant Master Mobilizer Magician
Maker-Bring ideas to life through tangible plans(Henry Ford)
Merchant-They quickly spot a market opportunity and thus know how to
demand with supply.(Richard Branson)
Masters-Expert in their own right ie very knowledgeable(Bill Gates)
Mobilizer-They are the connecting threads ie connecting people ideas
relationship and thus making high performance teams.
Magician-Use to innovate(Steve Jobs)

..Identify a prblm worth solving.Also see if its worth solving.

..Design is how it loos,how it feels,how it gets operated.It is deeply
human centered.
..Values of design thinking:
a.Empathy:Walk in the shoes of your customer.
b.Curiosity
c.Imagination.
d.Make:Continuous iteration or hit and trial process
e.Optimism
..Popular design thinking mode.
a.Stanford d.school-EDIPT
Empathize Design Ideate Prototype Test.
b.Wadwani foundation:
Immerse Empathize Ideate Prototype Validiate.

..Brainstorming principles:
a.Generate as many ideas as you can.
b.Don't critisize or stop anyone,let them say.
c.Welcome wild and crazy ideas.
d.Build upon each other ideas.

..Cusotmer vs Consumer:
One who buys=Customer
One who consumes=Consumer
Both of the above are equally important ie if a consumer dosen't like
your pdt the customer may not buy it or if cusotmers don't find your
pdt well suited for their pocket they will also not go with it.
Types of Market:
a.Exisiting Market:
b.Resegmented Market:
c.New Market:
d.Clone Market:

Segmentation:It is the process of defining and subdividing your cusotmers

into distict segments based on their need,wants,demands.
Market segmented by geographies,demographics(gender,age,
religion etc),Behaviour
Target:Deciding which potential customer segment your idea,your pdt or
your service will focus.Here target strategies can be
Single segment,multi segment,unsegment,niche.
..A new startup should prefer to try on niche market.

Value Proposition Design:

Simple & Comprehensive process of designing and testing value proposition
It helps you to create pdts and services that exactly matches the need
of the customer.
Gain, Pain, Customer Jobs(..,..,..,)
| | |
Gain Pain Pdt &
Creators Relivers Services

ODI(Outcome Driven Innovation):

What the customer wants your pdt to do for them.
It involves:Plan,Capture,Organize,Rate,Design

Difference between business model & business plan:

Business model is a way though which company generates its financial
value.A business plan is a document presenting the comapny's strategy.

Lean Canvas:
1.Problems(top 1 to 3 prblms)
2.Customer Segment(b2b,b2c or both,niche,early adopters)
3.UVP(most compelling thing)
4.Solution(top 3 features)
5.Channel(Path to cusotmers)
6.Revenue Streams(Revenue)
7.Cost Structure(fixed cost,variable cost,customer acquisition cost)
8.Key metrics(Key activities to be measured)
9.Unfair Advantage(State why your sol can't be copied)

Prioritizing your risk & assumption:

Customer pain level,ease of reach,Pricing,Market size,technical feasibility

Blue Ocean Strategy:

In this approach your sol have little to no competetion ie an unknown or
new market place.

Red Ocean Strategy:

Rivalary,limited profit,cut throat competetion.

Value Preposition:
1.Def the competetion.(Identify 5 to 6 existing players)There is always
some competetion if not then the choose the substitute that people are
using in absence of its.
2.Identify the pdt benefits.(Pain releivers,gain creators)
3.Plotting the strategy canvas(Pdt vs benefit graph).
4.Apply four action framework:reduce eliminate create raise

MVP(Minimum Viable Pdt):

Building the min features in order to get the feedback.In this regard we
can get inputs verbally or orally frm the customer.It ranges from simply
be a web wireframe,ppt slide or a physical pdt or a working part of its.
In this you will get to know if the cusotmers are willing to pay.

Sol demo:Smallest possible solution capturing the core essence of actual

product.We dont have to invest a lot building a full fledge pdt
that no body wants instead of it create a moc or sol demo and
test it with cusotmers.
Sol demo is a prerequisite to devloping your mvp.

Cost-
Startup cost-Cost that an enterprise incur before starting a business.
Fixed cost-expenses incurred regularily irrespective of how much you sell
Variable cost-cost that depend on the no of units sold or produced.

Pricing Strategy:
1.Maximization-
It is a process by which company determines the price & the pdt output
level that generates more profit.The best example for this can be
starbucks.
2.Market Penetration-
It involves pricing the pdt at a low price therby covering a large
share of market.The best eg of this can be slack technologies
3.Market Skimming-
It is a primilarily used for high tech pdts and low availability goods.
In skimming you start with high prices and gradually increase the pdt
offferings.Apple sells latest iPhones at high prices and repackage older
ones at low.

Profit-It is the revenue that is left with you after the fixed & variable
cost has been deducted from total revenue.
Breakeven-It is the no of units that needed to be sold in order to recover
fixed expenses for that period
Payback Period-The required time to recover the money invested in a startup
cost,assuming certain level of sales.

Boodstrapping-It is a way of starting your business without any external help.

hence by taking personal finances,loans frm friends & family
or by means of revenue or profits.Here we try to covert fix cost
to variable cost.

Type of Leadership:
Autocratic(-ve emotions,dissatisfaction)
Democratic(merge with the team)
Laissez Fiare(Giving complete freedom to the team,always in chaos)
Shared Leadership-Invloving two or more people sharing resposibilites.

Brand-Image of pdt on customer's mind.It reflects what customer think &

feel abt the pdt.For eg spiderman is a brand and when it gets put
on notebook,stickers,waterbottle we treat it as pdt.
a.Your brand should be consistent with the pdt.
b.Reinforce your brand to the consumer.
c.Concentrate on your target customer.
d.Tiup with strong brands.
e.Be consistent in all your communication.

Channels:
We can use it for communicating with our customers and also for
delivering our pdt ie providing a mean for all these.
tips:
a.Leverage free and low cost channels
b.Channels right for early days may not be good for later days.
c.Prioritize with few channels.
d.Be consistent with the messaging

Why cusotmers don't buy:

a.beause there are alternatives and customers don't want to switch
b.In this factors involved are:
i.Switching Cost
ii.Psychological bias(Percived value,Loss aversion,optimism)
In this optimism is related with entrepreneurs and thier over +ve
nature

Customer acquisition--funnel diagram

eg. 100,000 is the size of niche-->10,000 contacted-->1,000 showed
interest-->100 coverted.

Types of Selling:
a.Spin selling-Extensive use of consulting techniques.
b.Consultative selling-Extensively listening to all
c.1to1 sales method:
.Preparation,open the call,investigate the need,sharing the benefits
Objection handling,close the sale