Entrepreneurship

1. Entrepreneurship Start, Survive and Grow Dr. Travis Perera Postgraduate Institute of Management drtravisperera@gmail.com

2. Who Are Entrepreneurs? • Entrepreneurs are: • Persons who start and/or operate a business. • Individuals who discover market needs and launch new firms to meet those needs. • Risk takers who provide an impetus for change, innovation, and progress. • All active owner-managers (founders and/or managers of small businesses).

3. 8 reasons why people start their own businesses • Creating true wealth and financial freedom • Being in control of your own future • Lifestyle choices • Desire for independence • Feeling like you have a purpose • Change in circumstances • Necessity – not enough income • Necessity – no income

4. ENVIRONMENT An innovative technology, An attractive market,Risks-Market, Technology, Team, Financial THE DNA Innovative, Action oriented, Extremely self-confident, Achievement Oriented, Decisive, Affiliation oriented Quality Opportunity Entrepreneurial Qualities SUCCESSFUL ENTREPRENEUR Strong Business Plan Execution MANAGEMENT Business formation. Product development, Customer development, Financial management COMPONENTS Idea, Startup, Technology, Customer, Financials What Makes a Successful Entrepreneur?

5. 5 Signs That You're an Entrepreneur at Heart • Entrepreneurs are passionate, inside and outside of work • Entrepreneurs are committed to building businesses, not just coming up with great ideas • Entrepreneurs know how to focus, yet are comfortable moving in multiple directions at once • Entrepreneurs are happy • Entrepreneurs can be employees Ref: Inc.com, 2012

6. Not starting small • Founders give up • Not continuously learning • Not innovating • Poor team • Startup over-spends • Lack of planning

7. Identifying Startup Ideas • Opportunity Recognition • Identification of potential new products or services that may lead to promising businesses • Entrepreneurial Alertness • Readiness to act on existing, but unnoticed, business opportunities • Good Investment Qualities • Products that serve clear and important needs • Products that customers know about • Products that customers can afford • A good idea is not the same as a good opportunity. Ref: Inc.com, 2012

8. Start Lean, Pivot/Persevere • What do successful startups have in common? • They started out with one idea, learnt and changed to another • Pivot: change directions but stay grounded in what we’ve learned.

9. Minimum Viable Product (MVP) • The minimum set of features needed to learn from early customers and partners • Avoid building products that nobody will need • Maximize the learning for every Rupee spent Product Vision Minimum Viable Product

10. Unique Value Proposition (UVP) • “Unique Value Proposition: A single, clear compelling message that states why you are different and worth buying.” • Steve Blank The Four Steps to the Epiphany • Be different, but make sure your difference matters • Target early adopters • Focus on the end in mind • Pick your words carefully and own them • Answer: 5W+1H

11. The Lean Startup Business Model UNIQUE VALUE PROPOSITION PROBLEM SOLUTION CUSTOMER SEGMENTS UNIQUE ADVANTAGE Top 3 features in a minimum viable product Top 3 problems Cant be easily copied or bought Target customers Single clear compelling message that states why you are different and worth buying 3 7 KEY METRICS CHANELS Key activities you measure Path to customers 2 6 4 1 1 COST STRUCTURE REVENUE STREAMS • Revenue model • Lifetime revenue • Margins • Fixed costs • Variable costs 5 5 Adapted from Osterwalder, http://www.businessmodellgeneration.com