EntrepreneurshipStart, Survive and Grow

Dr. Travis PereraPostgraduate Institute of Managementdrtravisperera@gmail.com

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).

8 reasons why people start their own businesses

1. Creating true wealth and financial freedom

2. Being in control of your own future

3. Lifestyle choices4. Desire for independence5. Feeling like you have a purpose6. Change in circumstances7. Necessity – not enough income8. Necessity – no income

What Makes a Successful Entrepreneur?

SUCCESSFUL ENTREPRENEUR

Strong Business Plan

Execution

Quality Opportunity

Entrepreneurial Qualities

THE DNA

Innovative, Action oriented, Extremely self-confident, Achievement Oriented, Decisive, Affiliation oriented

ENVIRONMENT

An innovative technology, An attractive market, Risks- Market, Technology, Team, Financial

MANAGEMENT

Business formation. Product development,

Customer development, Financial management

COMPONENTS

Idea, Startup, Technology,

Customer, Financials

5 Signs That You're an Entrepreneur at Heart

1. Entrepreneurs are passionate, inside and outside of work

2. Entrepreneurs are committed to building businesses, not just coming up with great ideas

3. Entrepreneurs know how to focus, yet are comfortable moving in multiple directions at once

4. Entrepreneurs are happy5. Entrepreneurs can be employees

Ref: Inc.com, 2012

1. Not starting small2. Founders give up3. Not continuously learning4. Not innovating5. Poor team6. Startup over-spends7. Lack of planning

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

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.

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

Minimum Viable Product Product Vision

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

The Lean Startup Business ModelPROBLEM SOLUTION UNIQUE

VALUE PROPOSITION

UNIQUE ADVANTAGE

CUSTOMER SEGMENTS

KEY METRICS CHANELS

COST STRUCTURE REVENUE STREAMS

Top 3 problems

Top 3 features in a minimum viable product

Single clear compelling message that states why you are different and worth buying

Cant be easily copied or bought

Target customers

Key activities you measure

Path to customers

• Fixed costs• Variable costs

• Revenue model• Lifetime revenue• Margins

11 2

3

46

7

5 5

Adapted from Osterwalder, http://www.businessmodellgeneration.com