Chapter 7 Exhibit 7.1

1. Chapter 7Exhibit 7.1

2. Exhibit 7.3

3. Exhibit 7.6

4. Entrepreneurial Influence Skills • Interpersonal/teamwork skills • Create a climate and spirit conducive to high performance • Lead in those situations where it is appropriate • Generate consensus and share power / information • Recognize that high-quality decisions require a rapid flow of information in all directions (* see HBR) • Accept that knowledge, competence, logic, and evidence need to prevail over official status or formal rank in organization

5. Characteristics of Successful Managers • Managers skilled at teamwork and people management • Encourage innovation and calculated risk rather than by punishing or criticizing whatever is less than perfect • Expect and encourage others to find and correct their own errors and to solve their own problems • Make heroes out of other team members and contributors • Generate trust among colleges and subordinates • Perceived as honest and direct, open and spontaneous

6. HBR • Crafting strategies that work… • All ventures require planning, yet too much time spent planning causes missed opportunities • Screen quickly • Analyze parsimoniously • Integrate action and analysis (Kawasaki states this too)

7. HBR • Crafting strategies that work… • Most successful businesses were discovered through personal experiences: work or personal need… • See page 60, HBR

8. Key Questions for the Lead Entrepreneur/Founder • Is formation of a team desirable or necessary? • Do I want to grow a higher potential company? • What talents, know-how, skills, track record, contacts, and resources are currently available? • What is needed to succeed? • Who is needed to complement me?

9. Forming and Building a Team • Three issues for consideration • Values, goals, and commitment • Definition of roles • Peer groups

10. Common Pitfalls • Do not use the “honeymoon” period of start-up advantageously • Do not answer the questions of who is in charge • Do not address or recognize the deficiencies of the lead entrepreneur or the management team

11. Common Pitfalls • Do not recognize that creating and building a new venture is a dynamic process • Do not identify and defuse destructive motivations of investors, prospective team members, or the lead entrepreneur • Do not value trust and integrity

12. Slicing the Founder’s Pie • How much stock ownership should go to whom? • Share the wealth with those who help to create the value and thus the wealth • Realize a harvest of at least 5 to 10 times the original investment • Make sure the company prospers and grows thus creating a huge, shared pie

13. Distribution Issues • Differentiation • Reward system recognizes differences in contributions among team members • Performance • Reward is a function of performance (as opposed to effort) • Flexibility • Reward system acknowledges and accounts for changes in contributions of team members

14. Consideration of Value • Idea • Business plan preparation • Commitment and risk • Skills, experience, track record, or contacts • Responsibility

15. Exhibit 9.1

16. Exhibit 9.3

17. Exhibit 9.4