1st Edition
The Guide to Entrepreneurship How to Create Wealth for Your Company and Stakeholders
Whether you work for an established company and want to trailblaze new products (intrapreneurship), or want to establish your own new venture (entrepreneurship), The Guide to Entrepreneurship: How to Create Wealth for Your Company and Stakeholders supplies invaluable guidance along with concrete action plans. In contrast to academic publications that merely emphasize accounting methods, this guide to intrapreneurship and entrepreneurship focuses squarely on the entrepreneur.
Demystifying the process of starting a company from scratch, the book provides aspiring entrepreneurs with detailed guidance that is written in plain English. It explores what constitutes entrepreneurial timber and the leadership skills required to raise all the needed capital. If you are thinking of starting your own company or have already decided to take the plunge, this book will help you determine:
- If you have what it takes to become a successful entrepreneur
- The value of your idea before funding
- If you and your team possess the skills required to gain a market advantage
- How to raise capital effectively
Explaining the critical importance of intellectual property to investors, the book covers the fundamentals of business valuations. It also explains how to write winning business proposals. While each chapter is designed to stand on its own, the book chapters are arranged in a manner that makes it easy for experienced entrepreneurs to jump from chapter to chapter as they please.
Identifying the unique set of characteristics that are shared by successful entrepreneurs, this guide will be especially helpful to anyone looking to start new ventures that require a high degree of scientific knowledge.
Entrepreneurial Timber
Introduction
Entrepreneurial Anatomy
The Entrepreneurial World
Entrepreneurial FAQ
Success Characteristics
Failure Characteristics
Risk Is a Four-Letter Word
Challenges of Entrepreneurship
The Ten Commandments of Entrepreneurship
References
Intrapreneurship: Corporate Entrepreneurship
Introduction
Definitions
Kelly Johnson’s 14 Rules of Skunk Works
Theory of Intrapreneurship
The 3M Illustration
Characteristics of Intrapreneurs
External and Internal Business Environment
Culture Regarding Innovation
Corporate Support for Internal Business Creation
Critical Issues in Intrapreneurship
The Spin Zone
The Spin-Out
The Spin-Off Reorganization
The Equity Carve-Out
Intrapreneurship in Academia
The Ten Commandments of Intrapreneurship
References
Women and Entrepreneurship
Introduction
Global Impact of Women Entrepreneurs
Personal Challenges Faced by Female Entrepreneurs
Women and Success
Defining Success
Twenty-Five Leading Female CEOs
Hurdles to Overcome
Role of Angel Groups
Angel Capital Market and Female Entrepreneurs
The Green Alliance. A Female-Owned Business
Profile of Sarah Brown, Owner, Director
The Green Alliance Business Model
Business Conceptualization
Green Alliance Mission
The "Green" Business Enterprise
An Interview with Sarah Brown
The Importance of Emotional Support
Don’t Undersell Yourself
Overcoming Perceptions, Gaining Respect, and Finding Success
Putting It in Perspective
References
The Entrepreneurial Environment
Introduction
Leadership Qualities
Leaders vs. Managers
The Centrality of Leadership in a Start-Up
Leadership Is Situational
Establishing Your Founder Team
Elements of Skilled Teams
Establishing Your Board of Directors
Selecting Your Board of Advisors
Authority, Power, and Influence
The Founder and Organizational Politics
Power, Politics and Influence
Organizational Persona
The Dominant Coalition
Dominant Coalition as Change Agent
Theory of Change
Force Field Analysis
Leaders Need Followers
Current Views of Followership
The Followership Universe
Time Management
The Urgent-Important Matrix
Conflict Management
Entrepreneurial Rewards
Entrepreneurial Types
The Ten Commandments of Leadership
References
New Venture Creation
Introduction
Corporate Life Cycle
Global Fortune 500 Annual Turnover
Corporate Life Cycles
Greiner’s Model of Organizational Growth
Churchill and Lewis Growth Model
New Product Life Cycles
A Small Company Is Not a Little Big Company
Cash Is King
Your Innovative Organization
Types of Innovation
Creating Your Own Innovation Culture
Strategic Planning for Start-Ups
Your Value Chain Analysis
Your Value Proposition
SWOT Analysis
The Early Adopters
Bridging the Valley of Death
References
Financing Your Dream
Naming Your Baby
Bad Company Names
Bad Product Names
Incorporating Your New Venture
Characteristics of Corporations
Selecting the Optimal Legal Structure
Legal Powers of Corporate Executives
Creating Value for Your Stakeholders
Employee Benefits
The 3 Fs, Angels, and VCs
Friends and Family
Angel Investors
Venture Capital
Principles of Raising Capital
Persuasive Business Presentations
Rookie Mistakes
Your Elevator Pitch
Must Haves
Brief Descriptions
Last Three Bits of Advice
Estimating Start-Up Costs
Valuing You and Your Team
Valuing Your New Venture. (Calculating Pre-Revenue Valuation)
Basic Calculations
Valuation Examples
References
Organizational Structure
Introduction
The Founding Team
Hiring Your Executive Team
Teamwork Not Titles
Team Discipline
Focus on Outcomes, Not Activities
Too Many Chiefs, and Not Enough Productive Indians
Accountants and Lawyers
Accountants
Lawyers
Managing Managers
How Is Managing Managers Different From Managing Projects?
A Roadmap for Managing Managers Effectively
Selling Your Vision to Your Team
Fail as Fast as You Can
Overcoming Organizational Inertia and Defenses
Organizational Inertia
Organizational Defenses
An Old Aphorism
References
Power Negotiations
Business Negotiations 101
Negotiation Wheel
Negotiation Strategies
Distributive Negotiation
Integrative Negotiation
The Entrepreneur as Chief Negotiator
Start-Up Negotiator Fears
The Neophobia Syndrome
If You Expect More, You Get More
Knowing Your Negotiation "Counterpart"
Your First Negotiation
Aligning Interests
Planning Your Negotiation Success
The Negotiation Agenda
Preparing the First Draft of Any Document
Measuring Success
Negotiation Strategies
Negotiation Styles
Negotiation Tactics
Laws of Power Negotiation
The Chicken or Egg Cycle
The Negotiating Table
How Is Your Meeting Progressing?
Power Negotiator’s TIR
Managing Negotiation Conflict
Secrets of Power Presentations
Secrets of Closing the Deal
The Ten Amendments of Negotiations
References
Marketing and Sales
Introduction
Selling Your Innovation
Needs, Wants, and Demands
Analyzing Your Market
The Promise of Unmet Needs/Wants
Costs and Functions of Marketing
Pioneering Start-Ups
Crossing the "Chasm"
Your Pioneer Strategy
Setting the Right Price
Establishing Your Pricing Tactics
Tensions between Marketing and Sales
The Complex Sale
Market Segmentation
Positioning: Your Place in the Sun
Famous Positioning Statements
Template for a Positioning Statement
Sales and Sales Promotions
Your Sales Force
Sales Force Compensation
Sales Force Time Management
References
Intellectual Property
Introduction
Patentable Inventions
Who Benefits From Intellectual Property Rights?
Understanding Patents
Contents of a Patent
Claims: The Heart of a Patent
Claims Categories
Real Estate Analogy
Provisional Patents
Time Limits
Advantages and Disadvantages
Patents Can Have Siblings/Children
International Patent Organizations
Basis for Venture Investment
The America Invents Act
First to File
No Grace Period
The Special Case Involving Biotechnology Patents
Genetic Engineering Patents
Microbiological Sciences Patents
Plant and Animal Sciences Patents
Pharmaceutical and Chemical Sciences Patents
Medical Sciences Patents
Microorganisms and Sufficiency of Description
Practical Advice to Entrepreneurs/Inventors
Who Is the "Inventor" in Your Company?
Conception
Should You Out-License Your Patent?
Fundraising Importance of Patents
Trade Secrets in the Start-Up Environment
References
Meet the JOBS Act
Introduction
The JOBS Act at a Glance
Title III of the US JOBS Act
Equal Access and Disclosure
Crowdfunding
Issuer Requirements
Intermediary Requirements
Funding Portals
Restrictions on Funding Portals
Mini-IPOs
Emerging Growth Company IPOs
Relief for EGCs
Confidential Filing Process
Relaxed Restrictions on Investor Communications
References
Strategic Management
Introduction
Strategic Corporate Planning
Core Values and Core Purpose
Mission, Vision
Competitive Intelligence
Marketing Intelligence
The Pizza Analogy
Strategic Marketing Goals by MI
References
Valuation Techniques
Introduction
Value vs. Price
Pre-Seed Financing
What Is Your Company Worth at Start-Up (Seed Round)?
Initial Valuation at Seed Round
Valuation at Series "A" Round
Valuation Approaches—Companies with Revenues
Income Approach
Discounted Future Returns Method
Capitalized Returns Method
Assumptions
Market Approach
Asset-Based or Cost Approach
Venture Capital Valuation
Staged Capital Infusions
Venture Capital Metrics
The Investment "Hurdle Rate"
Top Ten Lies VCs Tell
Vulture Capitalist
Last Words of Advice
How to Maximize Your Company’s Value
References
Writing a Winning Business Plan
Introduction
Need for a Winning Business Plan
The Essential Components
Common Parts of a Good Business Plan
Risk Is a Four-Letter Word
Management Team That Can Execute
Competent Team
How Innovative Is Your Invention?
Ignore Naysayers (and Prove Them Wrong)
Milestones Make Your Plan Real and Believable
The Value of Your Plan Will Be Measured by Its Implementation Potential
Example of a Winning Business Plan
References
Harvesting
Introduction
Start at the End
Who Needs an Exit?
Capitalization Principles
How to Capitalize Your Start-Up
Going Public
Advantages
Disadvantages
The Going Public Process
The Registration Process
Strategic Alliances
The "Big Question"
Drivers of M&A Activities
Advantages of Strategic Alliances
Pitfalls of Strategic Alliances
Best Practices
Mergers and Acquisitions
Mergers
Acquisitions
The Challenge of M&A
The Enduring Questions
The Day That Little David Acquired Giant Goliath—A Case Study
The Acquisition
Open Heart Procedures
CardioTech as the White Knight
Risk Factors SWOT Analysis of the Gish Acquisition
Strengths
Weaknesses
Opportunities
Threats
The Stock-for-Stock Transaction
An Accretive Acquisition
Sample Prospectus
References
Index
Biography
Ph.D Szycher