The Entrepreneurial Mindset
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- Allan Newman
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1 The Entrepreneurial Mindset From Idea to Opportunity School of Business and Economics TIMEResearch Area Innovation & Entrepreneurship Group (WIN)
2 THE ENTREPRENEURIAL MINDSET IDEA APPROACH GET YOURSELF STARTED TEAM LEAN START-UP Create your business idea and evaluate its potential PITFALLS
3 IDEA OR OPPORTUNITY?
4 DIFFERENCE BETWEEN IDEA AND OPPORTUNITY [1] IDEA A thought or conception that potentially or actually exists in the mind of an individual or group OPPORTUNITY A chance for progress or advancement under favorable or advantageous circumstances
5 GOOD IDEA GOOD BUSINESS OPPORTUNITY Segway will be to the car what the car was to the horse and buggy. Dean Kamen, founder of Segway [2] [3] Technologically a brilliant idea, but does it fulfil its original purpose?
6 HOW TO RECOGNIZE AN OPPORTUNITY Process Open Mind Creative Process Ideas Short Evaluation Good Ideas Structured Work To Do s Openness Creativity Tools Business Opportunity Reflection Experience/ Tools
7 [1] EP Studios (2015): Reading about Steve Jobs. URL: Access Date: [2] Heilemann, J. (2001): Reinventing the Wheel. In: Time Magazine, Dec. 02, 2001 [3] Seattle Travels (2016): Segway Tour of Prag. URL: Access Date: REFERENCES
8 ORIGIN OF IDEAS
9 1 Social Network for university 1 2 It's graduation day, 4 years of college come to an end. Many will move to a different city, even a different country... 3 "I will miss you guys so much such a pity that we won't see each other anymore!" "It will be super hard to keep in touch with everyone spread out around the globe..." "Yes, definitely I would really love to know what everyone is up to..." 4 "Why isn't there a platform for us to keep track of each other this shouldn't be too hard to do, right?" "This sounds amazing like a Facebook for university students where you can share pictures & post stuff..." "Such a cool idea I would definitely sign up for this!"
10 2 Backpacker Luggage Delivery 1 After months of anticipation, the day has finally come: Philipp is about to start his backpacking trip to Australia. After packing everything he needs for the next weeks, he can barely lift his backpack. 2 Having arrived at the airport, he tries to check in his luggage... 3 "Sorry, Sir your luggage far exceeds the allotted weight limited of 23 kg. I am afraid that I need to charge you an additional 50 per additional kg." "Wow that's more than 300 on top! How am I to fit all my clothes, my tent, my sleeping bag and all the other stuff into a 23kg bag? That's impossible!" 4 "I am really sorry, Sir you will either need to pay the excess fee or send it by mail this might take a couple of weeks, though." "This is ridiculous! There should be a company that specializes in helping out travelers like myself this must happen all the time!" Service desk agent Philipp Service desk agent Philipp
11 3 Online Style Consultant 1 It's a sunny day in spring, Tom and David are waiting for their friend Michael to arrive to grab a coffee in the park. 2 "Hey Michael, what's going on? We've been waiting for you for a while, what took you so long?" "I am so sorry guys! It's just that I have a wedding this weekend and my crush is going to be there...you know how long it's been since I have been to an event like this? I have no idea what to wear!" He finally gets there, looking distressed... Tom David Michael 3 "So what? Just put on a nice suit and your best tie and you are good to go! What's so hard about that?" "The only suit I own is from my high school graduation you know how long that has been? I definitely need a new one and it needs to look great! Can you guys help me pick one?" 4 "Hmmmm...not sure what to look out for my cousin always helps me out with this kind of stuff, she works in fashion." "Same here if I didn't have my girlfriend to help me out, I wouldn't know what to buy!" "This sucks I don't know anyone who I could take...why isn't there a platform that connects me with someone who can give me some advice this shouldn't be hard to set up, right?" Tom David Michael Tom David Michael
12 OPENESS IS NECESSARY FOR IDEA GENERATION Process Open Mind Creative Process Ideas Short Evaluation Good Ideas Structured Work To Do s Openness Creativity Tools Business Opportunity Reflection Experience/ Tools
13 GENERATION OF IDEAS Ideas are often created in everyday situations 14% 1% 4% 16% Others At work 11% 1% 3% 13% Meeting Holidays Leisure time Breaks Creativity Techniques Business travel 37% At home [1]
14 ORIGINS OF IDEAS SERVE A NEED Pain of Customer Gain of Customer CREATE A NEED Biggest frustrations Major obstacles to achieve goals Needs Fears Needs Desires Goal and success definition Customer s strategies of achieving goals [2]
15 EVENTS & CHANGES Trigger of entrepreneurial activities! TECHNOLOGICAL EVENTS Technological innovation Digitalization MARKET EVENTS Deregulation Economic opening Insolvencies SOCIAL EVENTS World cups Festivals Public holidays SOCIATAL CHANGES Environmental awareness Urbanization
16 REFERENCES [1] Fueglistaller, U., Müller, C., & Volery, T. (2013): Entrepreneurship: Modelle-Umsetzung-Perspektiven. Springer Verlag. [2] Bratsberg, H. M. (2012): Empathy Maps of the FourSight Preferences.
17 QUICK EVALUATION
18 Assessment of commercial potential by quick evaluation Process Open Mind Creative Process Ideas Short Evaluation Good Ideas Structured Work To Do s Openness Creativity Tools Business Opportunity Reflection Experience/ Tools COMMERCIAL POTENTIAL
19 Problem? Customer? Willingness to pay? QUICK EVALUATION
20 Problem? Customer? Willingness to pay? QUICK EVALUATION
21 Problem? Customer? Willingness to pay? [1] [3] [2]? QUICK EVALUATION
22 Problem? Customer? Willingness to pay? [4] [5]? QUICK EVALUATION
23 [1] Asorkon, E. (2011): The Big 3 Most Important Backpacking Gear Items. URL: Access Date: [2] Funny Potato (2016): A huge backpack! URL: Access Date: [3] Express Delivery (2016): Services. URL: Access Date: [4] Bachinsky, A. (2011): My prayer closet. URL: Access Date: REFERENCES
24 DETAILED EVALUATION
25 Opportunity recognition requires structured work Process Open Mind Creative Process Ideas Short Evaluation Good Ideas Structured Work To Do s Openness Creativity Tools Business Opportunity Reflection Experience/ Tools STRUCTURE
26 MARKET & COMPETITION CRITERIA Market size & structure Market growth Market entry barriers Customer Competitive advantage Lowest Highly concentrated Growth rate <10% High Loyal to competitors Low POTENTIAL Highest Fragmented Growth rate of 30-50% None Reachable High FINANCIALS Gross margin Time to break-even Capital intensity R&D expenses <15% >4 years High High >30% <2 years Low to moderate Low OTHERS Value-add potential Exit mechanism Team Technology Opportunity orientation Low strategic value Undefined exit B team Many substitutes Napping High strategic value Present/future options Best-in-class Groundbreaking Always searching [1] SET OF CRITERIA
27 Business Model Canvas by Osterwalder KEY PARTNERS KEY ACTIVITIES KEY RESOURCES VALUE PROPOSITION CUSTOMER RELATION- SHIPS CHANNELS CUSTOMER SEGMENTS COST STRUCTURE REVENUE STREAMS [2] VIZUALIZATION OF POTENTIAL
28 Key Partners Backpacking gear companies Logistic companies Local stores for drop-off and pick up Key Activities Logistics IT maintenance Key Resources Basic IT Network Cost Structure Individual national and international shipments Local handling and insurance of shipping Value Proposition Comfortable travelling Long term travelling No transportation problems Customer Relationships Short term Acquisition Channels Online Print Personal Revenue Streams Customer Segments Backpackers Students on low budgets Adventure seeking individuals Customer pays delivery fees depending on size and weight VIZUALIZATION OF POTENTIAL
29 Key Partners Clothing brands Logistic companies Key Activities Trend Scouting Delivery Key Resources Stylists IT & Analytics Cost Structure Fixed costs: office, employees, IT Variable costs: outfits, logistics Value Proposition Customer journey Customized styles Quick delivery Saving of time? Customer Relationships Long term Individualized Channels Online Social media / Calls Revenue Streams Customer Segments People struggling with getting stylish outfits and having not enough time to go shopping Customer pays online for each outfit Different price ranges for different segments VIZUALIZATION OF POTENTIAL
30 Essential to consider all aspects of the business idea Executive Summary Corporate Goals Products & Services Market & Sector Marketing Organization Management & Key Roles Implementation Finances Chances & Risks BUSINESS PLAN
31 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality IDEA APPROACH TEAM GET YOURSELF STARTED LEAN START-UP Create your business idea and evaluate its potential PITFALLS
32 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality IDEA APPROACH GET YOURSELF STARTED TEAM LEAN START-UP Create your business idea and evaluate its potential? Apply the process of successful entrepreneurs PITFALLS I had to give it a full go and see what happened. [3] Michel Dell [4]
33 [1] Timmons, J.A. and Spinelli, S. (1999): New Venture Creation: Entrepreneurship for the 21st Century. p. 86 [2] Osterwalder, A. and Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers and Challengers. John Wiley & Sons. [3] Hartmann Studios (2011): Michael Dell. URL: Access Date: [4] Dell, M.: URL: Access Date: REFERENCES
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