Chapter 7- Entrepreneurship lecture International University- HCMcity

1. Technology Ventures: From Idea to OpportunityChapter 7: Summary
The method of enterprising is to plan with
audacity and execute with vigor.
Christian Bovee
How are ventures actually formed and what is the role of
the business plan?
Entrepreneurs respond to attractive opportunities by forming
new ventures. One particularly important step is the
development of a business plan. We also discuss the benefits of
joining a cluster of interconnected enterprises.
Summary

2. Technology Ventures: From Idea to OpportunityChapter 7: Figure 7.1
Building A New Business
Opportunity
Vision
Access to Distinctive Capabilities of
Resources Competencies the Team
Innovation Business Industry
or Strategy Context
Novelty
Talent Structure Processes
Profitability

3. Technology Ventures: From Idea to OpportunityChapter 7: Table 7.1
Step
1. Identify and screen opportunities. Create a vision and concept statement and build an
initial core entrepreneurial team. Describe the initial ideas about the value proposition and
the business model.
2. Refine the concept, determine feasibility and prepare a mission statement. Research the
business idea and prepare a set of scenarios. Draft the outline of a business plan and an
executive summary.
3. Prepare a complete Business Plan with a financial plan, and the legal organization suitable
for the venture.
4. Determine the amount of financial, physical and human resources required. Prepare a
financial model for the business and determine the necessary resources. Prepare a plan
for acquiring these resources.
5. Secure the necessary resources and capabilities from investors as well
as new talent and alliances. Launch the organization
The Five-Step Process for Establishing A New Venture

4. Technology Ventures: From Idea to OpportunityChapter 7: Exercise
Consider the corporate venture creation process of a firm
you know or have worked for. Describe their creation
process and their successes and failures. How could they
improve the process?

5. Technology Ventures: From Idea to OpportunityChapter 7: concept
A business plan is a document that describes the
opportunity, product, context, strategy, team, required
resources, financial return, and harvest of a business
venture.

6. Technology Ventures: From Idea to OpportunityChapter 7: Table 7.2
The Elements of a Business Plan
• Executive Summary
• The Opportunity — Quality, Growth potential
• The Vision — Mission, Objective, Core Concept
• The Product or Service — Value Proposition, Business Model
• The Context — Industry, Timeliness, Regulation
• The Strategy — Entry, Marketing, Operations, Six Forces
• The Organization — Structure, Culture, Talent

7. Chapter 7: Table 7.2 continued Technology Ventures: From Idea to Opportunity
The Elements of a Business Plan (cont.)
• The Entrepreneurial Team — Capabilities and Commitment
• The Financial Plan — Assumptions, Cash Flow, Profit
• The Required Resources — Financial, Physical, Human
• The Uncertainties and Risks
• The Financial Return — Return on Investment
• The Harvest — Return of Cash to Investors and Entrepreneurs

8. Technology Ventures: From Idea to OpportunityChapter 7: Table 7.3
• Solutions or technologies looking for a problem
• Unclear or incomplete business model and value proposition
• Incomplete competitor analysis and marketing plan
• Inadequate description of the uncertainties and risks
• Gaps in capabilities required of the team
• Inadequate description of revenue and profit drivers
• Limited or no description of the metrics of the business
• Lack of focus and a sound mission
• Too many top down assumptions like "we will get 1% market share"
• Limited confirmation of customer demand or pain
Ten Common Mistakes or Gaps in Business Plans

9. Technology Ventures: From Idea to OpportunityChapter 7: Figure 7.3
The business plan serves
as the alignment tool for a
new business venture.
Resources
Financial
Physical
Intellectual
Deal
Reward, Risks
Incentives
Ownership
Harvest
People
The Team
Capabilities
Attitude
Reputation
Opportunity
Customers
Strategy
Business
Model
The
Business
Plan
Context: Economy, Regulatory, Industry

10. Technology Ventures: From Idea to OpportunityChapter 7: concept
A cluster is a geographic concentration of interconnected
companies in a particular field. A new company within a
cluster is more likely to find the employees and
infrastructure that it needs.

11. Technology Ventures: From Idea to OpportunityChapter 7: Figure 7.4
The Three Interrelated Factors That Determine The
Quality of Life on Earth
Societal Quality of
Life and Equity—
Social Capital
Global and
Regional
Environmental
Quality—
Natural Capital
Economic Growth
and Standard of
Living—
Economic Capital

12. Technology Ventures: From Idea to OpportunityChapter 7: concept
A social entrepreneur is a person or team that acts to
form a new venture in response to an opportunity to
deliver social benefits while satisfying environmental and
economic values.

13. Technology Ventures: From Idea to OpportunityChapter 7: Principle
Entrepreneurs can learn and master a process for building
a new venture and they communicate their intentions by
writing a business plan.

14. Technology Ventures: From Idea to OpportunityChapter 7: Venture Challenge
VENTURE CHALLENGE
1)Create a draft table of contents for your venture’s
business plan.
2)Describe your process necessary for creating a business
plan.
3)Write an executive summary for your opportunity.
4)Will your firm locate in a region that offers cluster
dynamics?
5)What steps will your venture take to be socially
responsible?

15. Technology Ventures: From Idea to OpportunityChapter 7: DVD Video
DVD Video
“Changing the Business Plan in Response to a
Changing Environment”
Gordon Ringold (Surromed)