Background Slides on Entrepreneurship

BACKGROUND SLIDES ON ENTREPRENEURSHIP

©Professor Barry Unger unger@bu.edu

Updated January 9, 2008

Boston University

CONTENTS:

INTRO –

• The Changing Nature Of Business Competitive Advantage.

• Starting Companies In A World Of Dynamic Technology And Market Innovation Requires Interactive Planning.

PART I -THE BASICS

"ENTREPRENEURSHIP 101"

• The Entrepreneurial Process: A Systems Model.

• “Promoter” Vs Committed Entrepreneur Vs “Trustee/ Manager”: A Continuum On Which To Characterize Entrepreneurial Behavior.

• Various Criteria For A Good Business Opportunity.

• Purposes And Contents Of The Business Plan and Request for Financing.

FINANCE - THE LIFEBLOOD OF A COMPANY.

• Potential Sources Of Cash Flow.

• Bootstrapping: Why And How?

• Bootstrapping Vs Rapid Rollouts - The Pro's And Cons

• Angels And Informal Capital.

• When Are “Venture Capitalists” (Professional Institutional Investors) Right For Your Company?

• Initial Public Offerings (“I.P.O.”) For The Young Company?

• Small Business Innovation Research (S.B.I.R.) Grants — An Important Source Of High Risk Funds In The United States.

• A Realistic Look At Cash Flow Sources For Early Stage Cos. In 2008 – Both Private Venture Capital And Public Offerings May Never Again “Party Like Its 1999.”

• The Implications for Your Business Model And Company Financing Strategy.

PART II – “ENTREPRENEURSHIP 102” – INTEGRATING THE BEST OF TRADITIONAL ENTREPRENEURIAL PRACTICES AND WHAT WAS LEARNED IN THE NEW STYLE INTERNET HIGH TECH HIGH GROWTH COMPANIES. A NEWER MORE SOPHISTICATED WAY.

• The New Companies Must Be "Fast" And Efficient.

• Reduce Inherent Technological And Market Risk By Emphasizing A "Chain Of Credibility And Momentum" (©Unger And McDonald, 1995)

• Emphasize Fast Value Creation Through Shortening Time To Market And Increasing Flexibility Of Response.

• Aggressively Motivating Effective Employees And Teams.

• H.R. Implications:

o Emphasize...