Introduction To New Business Ventures PROFESSOR BALAGOPAL VISSA INSEAD 1, Ayer Rajah Avenue...
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Transcript of Introduction To New Business Ventures PROFESSOR BALAGOPAL VISSA INSEAD 1, Ayer Rajah Avenue...
Introduction To New Business Introduction To New Business VenturesVentures
PROFESSOR BALAGOPAL VISSAINSEAD
1, Ayer Rajah AvenueSingapore 138676
---Office: (65) 67995382
Hand phone: (65) 94244573Email: [email protected]
These notes are intended to support class discussions. They should not be considered a comprehensive set of issues to be dealt with.
Welcome! Something about me Bala Vissa Ph.D. from London Business School Research focuses on new venture team
dynamics and networks, Business Groups and entrepreneurship in emerging economies
Work experience: 7 years with Unilever plc and HCL in India 2 years experience in corporate entrepreneurship
Now, something about you
Please take 5 minutes to fill in the questionnaire (whether registered or not)
• Pair up with another person whose first name
starts with the same letter as yours or is one letter away – e.g. John can pair up with Jane, Ian or Kate
• Explain your favorite new venture idea to your counterpart
• Your Task: Introduce your counterpart to the class in under 2 minutes focusing on:– His/her name and background– His/her favorite new venture idea– Is he/she seeking team members– His/her relevant prior experience
“She’s always in your face isn’t she. I don’t get it. What is it about her? She’s not a great dancer or singer.”
Michael Jackson
Sensing an opportunity & executing flawlessly, time after time …
“As America turns prim and proper, radical Madonna, always ahead of trends, has been penning children’s books, dressing demurely in Laura Ashley florals, and exalting motherhood”
Source: The Straits Times, July 10, 2004
Madonna: The serial entrepreneur?
1989 1996 20031983 1988 1995
Positioning
Leveraging Resources
Growth and change
Music, sex appeal Music, sex and new age
“Like a Virgin” “Desperately Seeking Susan”
Ambition; Relationship with Prince; Marriage to Sean Penn, ability to spot trends
DisciplineBuilding and using alliances;Manipulating the press
“Like a Prayer”; “Sex”;“In Bed with Madonna”
Relationship with Warren Beatty – played in several movies, ability to spot trends
“What it feels like for a girl”“Evita”
New producers;New staff; Guy Ritchie, ability to spot trends
Discipline,Breaking alliances; Creating Controversy; Film experience
Discipline (with a softer face?)Self-development;Motherhood; Move toLondon; Guy Ritchie
Music,sex and controversy
So, what is entrepreneurship?
Pursuing opportunities without regard to resources currently controlled
In this course, we are interested in a specific aspect of entrepreneurship
Building a high growth venture
Common problem: How to start?
« I always wanted to create a company…There were times I didn’t sleep when I was an employee just because I didn’t know how to go about starting something. I wanted to start something , I wanted to be an entrepreneur, but I didn’t know what to do, I didn’t know how to build on my knowledge and expertise. What could I do? It’s easy to say – everybody wants to be an entrepreneur. The question is, how do you go about it? »
- Entrepreneurial INSEAD Alumnus
New business ventures
You want to build a business: How do you go about building a
business? What resources do you need? How do you acquire & manage them? How do you change your management
style as the venture grows?
New business ventures
You are working with start-ups: How do you judge the prospects of an
entrepreneurial venture? How can you anticipate potential
problems? How can you help the venture team
build the business?
Course objectives Learn how to turn opportunity into
revenue-generating business Experience the entrepreneurial
process Meet practice Work with start-ups Get your feet wet...
Discover / develop your entrepreneurial potential
What not to expect
A “boilerplate solution” Logically, there cannot be one
Legal details on how to start a business Talk to a lawyer in the country where you
wish to incorporate
Deep industry expertise Go find the experts!
« From the beginning, we had known that the New Ventures course would require a great deal of work. So we had decided to select a project which was potentially feasible, although at the time that didn’t necessarily mean we were going to go through with it. We worked hard on the project, and by the end of the course, after we had tested the idea with many people, seen the success of others… and got a better knowledge of the business, we became convinced that it was a real opportunity. »
- Paul Chantler and Thor Gudmundsson, MBA ‘92
Ideal course outcome
Success curves
Venture success curves
1
10
100
1000
10000
Raw id
ea
Subm
ittal
for f
unds
4 Hou
r rev
iew
In-d
epth
analy
sis
Offers
mad
e
Develo
pmen
t
Suc
cess
Sur
vivi
ng p
roje
cts
Entrepreneurialventures
Large Firm NPD
Liabilities of newness and smallness
General knowledge only Inadequate managerial knowledge Inadequate financial management abilities
Conflict, worry, inefficiency during founding period
Few relations with outside individuals and organizations
Initial lack of trust No stable ties with customers
Sources: Stinthcombe (1965), Thornhill and Amit (2001)
There are many sources of risk
Science/idea/service
Science/idea/service
ManagementManagement
BusinessModelsBusinessModels
FinanceFinance
MarketMarket
CompetitionCompetition
CultureCulture
Economicregime
Economicregime Exit
environmentExit
environment
Source: Advent InternationalGLOBAL PRIVATE EQUITY
>>>CONVERTING OPPORTUNITY TO AN OPERATING BUSINESS<<<
Module 1: The
EntrepreneurialMindset
Module 2: Entry
and Positioning
Module 3:Organization
Design
Module 4: Post-
Startup choices
Session #1 & #2: Whatdo Entrepreneurs Do?
Session #4 & #5:Business Models, EntryStrategy & Positioning
Session #7 & #8: UsingPersonal NetworksStrategically
Session #12: LettingGo of Your Baby
Session #3:Opportunity – The well spring of enterprise
Session #6: AligningPowerful Partners
Session #9: Building aWorld Class Team
Session #13: Copingwith Failure
Session #10: HerdingCats? Managing theStart-up team
Session #14: Summing up: Does Learning before Doing help?
Session #11: Managingfor Cash Flow
Focus on risks related to “Organizing”
Entrepreneurship is all about shifting the odds to your favor
Riskversus
Reward