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Entrepreneurship

Introduction, Varna Economic University April 1st, 2009

By Fred Westenberg, managing director,Ingenieursbureau Westenberg B.V. / BGConsult EOOD

fred@westenberg.net

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Content

• Today: Entrepreneurs, YOU

• Next 2 lessons: Feasibility, Structure, Juridical matters, Money, Juridical entity, Social security, Other security, Administration, Personnel, Business plan, Management

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Life is about

• Creating value

• Taking calculated risks

• Listening to your heart

• Realizing your aspirations

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So is …….

Entrepreneurship

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Are entrepreneurs unique?

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Some defined their lives

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Some changed the world

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Some are still in schoolAnshul SamarAge: 13

Does homework regularlyPlays Computer gamesFights with his sister

Also an entrepreneur ……..

CEO Elementeo www.elementeo.com

Anshul invented a board game called Elementeo, to teach kids about chemistry.

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Some are in collegeMark Zuckerberg

Age: 22

Hangs out with girlfriendsLives in a rented apartmentDrives a bicycle

Also an entrepreneur ……….

CEO Facebook www.facebook.com

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Some sold garbage(still became millionaire)

Tom ZsakyAge: 27

Coolest entrepreneur of the year (acc. to Inc.com)

CEO TerraCycle www.terracycle.net

makes fertilizer using worms Revenue 5 million dollar

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Some started at home

Jared IsaacmanAge: 23

CEO United Bank Card

Transaction processing company. Manages 45.000 clients daily

Revenue 58 million dollar

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Some save lives

Elizabeth HolmesAge: 21

CEO Theranos (www.theranos.com)

Deals with nanotech & micro fluids. Saves lives from adverse drug reactions

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Some teach at Varna Economic University

Fred WestenbergAge: 47

Nominated for Entrepreneur of the Year Harderwijk, Holland 2009

Westenberg Holding (since 1993)Main Activity: Engineering, Real

Estate

BGHold (since 1998)Main Activity: IT, Real Estate

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So what’s next???

D.S.M.J.F.Y. 1 ?

OR

N.J.J.G. 2 ?

1 Doing the Same Monotonous Job For Years

2 No Job Just Gaming

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OR …..

Wanna Join the elite league of entrepreneurs?

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IF SO ………

Keep ‘em open

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Entrepreneur:“one who organizes, manages, andassumes the risks of a business.”

Entrepreneurs:• Are risking: Reputation, Money, Time• Are not gamblers, but take calculated risks• Calculate risks and try to set odds in their favor• Transfer risk to others• Limit risks by careful definition of the ends and

control over the means

It’s all about Risks

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Entrepreneurs born or created?

– Alert– Neurotic– Creative– Decisive– Easily bored– Flair– Independent– Innovators– Leaders

– Achievers– Risk-taking propensity– Self-confidence– Self-motivation– Self-realizing– Versatile

Source: McCelland (1961)

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Are determined and persistent

Can find people to shore-up Weaknesses. Are good judges of talent and character

Can see how all the parts fit together

Willingness to sacrifice

Emotional stability & optimism

Low need for status

Objective approach to interpersonal relationships

Intuitive decision taking/making

Creative problem solving

Ability to conclude deals

Strategic Thinking

Project Management

Time management

Persuasion

Selling

Negotiating

Leadership skills

Inheritance of Tradition

• Are Decisive Decision Makers• Love What They Do• Want to be Master of their

Financial Destiny• Are Organized, Independent and

self-confident• Are hard workers• Can take criticism and rejection• Have specialized business ability

from experience or education

Character(ization) entrepreneurs

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… Get Rich!!!

• In 1892, 84% of America’s 4,047 Millionaires were Entrepreneurs

Source: American Economy, Stanley Lebergott

• Now, 7 million have incomes > $100k• But, only 4 million Millionaires in US!• 86% accumulated their wealth in one

generation• Only 14 % Inherited their money

Source: Millionaire Next Door, Stanley and Danko

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Millionaires …. (1/2)

• Live WELL below their means• Allocate time efficiently, in ways conducive to

building wealth – plan for $$ future, not which car to buy

• Want financial independence more than social status

• Parents did NOT provide economic outpatient care• Adult children are economically self-sufficient

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Millionaires …. (2/2)

• Proficient in targeting economic opportunity• Are entrepreneurs applies for 2/3 of Millionaires• Are rarely in sexy businesses• Chose right occupation• They made their money doing WHAT THEY LIKE

Source: Millionaire Next Door, Stanley and Danko

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BUT ….. It comes with a price (Failures)

• Marriage• Hours• Stress• Lawsuits• Financial

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Do you have what it takes?

Find your

passion!!!!!!!!!!

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Stephen Covey – 7 habits

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Be pro-active!

Re-active• I can’t help it• This is how I am• He makes me so angry• I would never be able

to do that• I have to …• If only I could …

Pro-active• Let’s see if there are

alternatives• I can do it differently• I control my own

emotions• I can choose• I prefer that• That is what I am going

to do

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Concern vs Influence• Be pro-active• Concern yourself with the things you

can influence• Your influence will increase• Concern yourself with more things• Your influence will increase even more• The sky is the limit

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Everything is created twice

• Design a house• Decorate your house• Plan a trip• What about your life?

Write your personal mission statement … your personal business plan

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Personal MissionStatement

Activities Type Contribution Results

Family

Friends

Work

Social activities

Start with “the end” in mind!!!!!

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Time managementmatrix

Urgent Not-urgent

Important I Necessity (Manage)•Crisis •Medical emergencies •Pressing problems •Deadline-driven projects •Last-minute preparations for scheduled activities

II Quality & Personal Leadership (Focus)•Preparation/planning •Prevention •Values clarification •Exercise •Relationship-building •True recreation/relaxation

Not-important III Deception (Avoid)•Interruptions, some calls •Some mail & reports •Some meetings •Many “pressing” matters •Many popular activities

IV Waste (Avoid)•Trivia, busywork •Junk mail •Some phone messages/email •Time wasters •Escape activities •Viewing mindless TV shows