Entering the World of Entrepreneurship Fred Nanni Babson College
Why Babson? US News and World Report ranks Babson the Number 1 undergraduate program for entrepreneurship for the 20 th consecutive time! 1. Babson College 2. MIT 3. University of Pennsylvania 4.5 UC, Berkeley 4.5 USC
Entrepreneurship and the Pro Football Path Babson s approach Entrepreneurial Thought and Action What does every successful entrepreneur rely on? The answers to these questions: Who are you? What do you know? What do you have? Who do you know?
Babson-Trust Entrepreneurship Path Is entrepreneurship for me? Babson 101 It s my Business: Basic Training is aimed at Trust members who are contemplating entry into the world of entrepreneurship. Have an offer you can refuse? The Trust program at Babson College has three primary workshops, each one focused on a different stage of entrepreneurial development. Babson 201 Entrepreneur s Boot Camp is aimed at people with a developed business idea who are preparing to seek funding. Babson 301 Growing My Business is for entrepreneurs who have viable businesses and are looking to move them to a higher level of development. Babson 101 Shape the business model Have a business idea? Babson 201 Seek funding Build ramp up the business - Products - Processes - Employees - Partners - Customers - Sales channels Babson 301 April 3-5, 2017 May 22-26, 2017 July 24-28, 2017
Basic Training: It s My Business (101) Objectives: Determine whether a future career in business, and most critically, a career as an entrepreneur, is a potential fit for you Build a personal playbook of next steps toward such a career Workshop goals: Develop connections and network with a group of like-minded colleagues Build second career confidence Develop skills to recognize gaps in business plans, both self-generated ones and those proposed by others Workshop design: Intensive 3 day session Hands-on learning; lots of team activity High levels of interaction Many opportunities to offer and test ideas
Strategic Economic Business Model What do you sell? To whom? Why would they buy? How do you make money doing that? What about foundations?
According to Business Model Generation by Osterwalder & Pigneur 8 7 2 4 1 6 3 9 5
Babson Business Model Canvas Key Partners Who are your key partners? What value is delivered by each? What can be rented, leased or borrowed rather than purchased? How critical are partners to delivering the value proposition? What key resources or activities are delivered by each? What risks or uncertainties are are reduced? Key Metrics What are the key measures of business model success? How will value delivery to the customer be measured? How are performance standards developed? Key Resources What key assets are required to deliver on the value proposition? (Human, Financial, Physical, Intellectual) Value Proposition What is it? Who is it for? Why do they need it? How important is it to solve the problem or need? How does it work? What is unique or different? Differentiation Leading to Advantage What is truly unique about your product? Which attributes resonate with your target customer? Is there are durable advantage? Why? Can the value be substantiated quantitatively or qualitatively? Channels How will you reach the customer? Each segment? How are they reached today? Direct? Indirect? Owned? Partnered? What services/relationship is offered with each? Which channels work best? Are the channels integrated? Which channels are most cost efficient? Customer Segments For whom are you creating value? What is the Total Available Market? Identify each potential market segment? Compare the needs of each segment? Where do they purchase? How do they purchase? What and how do they pay? What relationship is required for each? What other products or services do they want you to provide? How profitable is each segment? Cost Structure Revenue Structure What are the cost drivers? (activities, resources, standards) What is the resource intensity of producing your productor service? What is the unit cost structure? Are there economies of scale or scope? What costs are fixed/variable? Is the value proposition cost driven or value driven? Where is there leverage in the cost model? What are the drivers of revenue? What are customers willing to pay? What are the pricing mechanisms? How do they pay? Are there alternative methods of payment? What is the average time to a sale? Frequency of purchase? Volume of purchase? What is the contribution margin? What are the breakeven points? (unit volume, sales volume) Where is there leverage in the revenue model? Source: Adapted from Business Model Generation, Osterwalder, Alexander; Running Lean, Maurya, Ash
Launching a Business Let s talk about your business ideas!
Upcoming Dates 101 Workshop: Monday April 3 to Wednesday April 5 201 Workshop: Monday May 22 to Friday May 26 301 Workshop: Monday July 24 to Friday July 28
Entering the World of Entrepreneurship and The Babson-Trust Program Last Questions?