Inspiring Entrepreneurship Creating value through the recognition of business opportunity

Core PMOEntrepreneurial Life Cycle

PHASE IDEA SEED INTRODUCTION GROWTH TRANSITION

Ideal Life Cycle

GO

ALS

Idea

Opportunity

Business models

Business model

Niche and client

Value proposition

Channel

Price

Regular revenues

Acceptable efficiency in operations

Optimize operations

Set up Organization

Scale the business

Company consolidation

Bring Professional Management

RECESSION RENAISSANCE

Temporary Diversions

GO

ALS

Absorb the shock internally

LearningRefocus business model

New business model introduction

Regular revenues

STAGNATION DOWNFALL

Hazard

GO

ALS

Constant SalesMargins shrinkLack of internal energyDependence on

subsidies

Hard to finance WCRHigh StressNegative economic

results

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Core PMO

Framework:

Validation

Mentors

Subject Matter Experts

Third party Market Research

and Survey’s

Own Market Research

Family and Friends

Funds requirement

Minimal or None

Source of funds

Self

Family and Friends

Full time team requirement

Self

Entrepreneurial Life Cycle Home

Ideal Life Cycle

IDEA SEED INTRODUCTION GROWTH TRANSITION

Insp

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And few key actions during stage are:

Seek the opportunity behind the idea, and shape it into a rough business model.

Identify and reduce that huge uncertainty.

Learn a lot in both dimensions, deep vertical and wide horizontal.

Market analysis: product, client, rivalry, industry, size, trends (up/down/steady), channel, regulatory, potential new entries

Seek feedback on the idea and the business opportunity, again from trusted people.

The most significant features that describe this stage are listed

below:

Idea Sense

Uncertainty Sacrifice

Informal Public /Private

Austerity Learning

Speed Transition

Goal: Find and define the business opportunity that will allow us to achieve our mission

Entrepreneurial Life Cycle Home

Ideal Life Cycle

IDEA SEED INTRODUCTION GROWTH TRANSITION

Insp

iring En

trepren

eursh

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Framework:

Validation

Mentors

Subject Matter Experts

3rd party Market Research

Own Market Research

Family and Friends

Funds requirement

Minimal

Source of funds

Self, Family and Friends

Team requirement

Full time – SELF

Part time – few more

And few key actions during this stage are:

Plan and raise required capital; prefer strategic investors (even if small)

Develop Product – get feedback on your prototypes first

Find and develop Customers (look for friendlycustomers first)

Look for good alliances and partners

Setup advisory board with experts

Incorporate the company

Build an acceptable corporate image

Protect intellectual property

Most significant features of this stage are:

Sense Opportunity

Formal Flexibility

Efficiency Working capital requirement

Vulnerability Heuristic

Validation Dynamism

Goal: Build and validate the business model

Entrepreneurial Life Cycle Home

Ideal Life Cycle

IDEA SEED INTRODUCTION GROWTH TRANSITION

Insp

iring En

trepren

eursh

ip

Framework:

Validation

Mentors

Subject Matter Experts

Third party Market Research

and Survey’s

Own Market Research

Family and Friends

Funds requirement

Minimal or None

Source of funds

Self

Family and Friends

Full time team requirement

Self

And a few key action items in this stage are:

Intensify sales efforts

Distribution channel development

Setup up an organization chart

Main processes definition to back operations

Growth strategy draft

Operational processes optimization

Fluid communication, both formal and informal

Establish internal policies

High attention to quality control and customersatisfaction

Most significant features of this stage are:

Focus Organization chart

Income Planning

Control Growth

Benchmark Efficiency

Goal: Regular income and acceptable efficiency in operations.

Entrepreneurial Life Cycle Home

Ideal Life Cycle

IDEA SEED INTRODUCTION GROWTH TRANSITION

Insp

iring En

trepren

eursh

ip

Framework:

Validation

Mentors

Subject Matter Experts

Third party Market Research

and Survey’s

Own Market Research

Family and Friends

Funds requirement

Minimal or None

Source of funds

Self

Family and Friends

Full time team requirement

Self

And few key actions in this stage are:

List indicators for growth

Name limitations of indicators

Identify growth strategies

Explain implications of expansion

Make recommendations

Suggest methods

Describe management skills

Give reasons for problems

Most significant features of this stage are:

The need to study businesses that are growing

Then nature of growth

The entrepreneurial growth challenge

External growth strategies

Financial, economic and management relatedgrowth indicators

Goal: Manage and measure growth and implement strategies

Entrepreneurial Life Cycle Home

Ideal Life Cycle

IDEA SEED INTRODUCTION GROWTH TRANSITION

Insp

iring En

trepren

eursh

ip

Framework:

Validation

Mentors

Subject Matter Experts

Third party Market Research

and Survey’s

Own Market Research

Family and Friends

Funds requirement

Minimal or None

Source of funds

Self

Family and Friends

Full time team requirement

Self

And few key actions of this stage are:

Public offerings (IPOs)

Trade sales

Management and employee buy-outs and buy-in

Acquisitions, mergers and takeovers

Liquidations, bankruptcies, and write-offs

Most significant features of this stage are:

The first transition begins when one or more persons start to commit time and resources to founding a new firm

The second transition occurs when the gestation process is complete and when the new venture either starts as an operating business or abandon effort

The third transition is the passage from infancy to adolescence – the fledgling new firm's successful shift to an established new firm

Goal: Voluntary (Harvesting) or involuntary (Closure) transition.