Entrepreneurship PDF

ENTRE PRE NEUR SHIP  PMP (PMI – Project Management Professional) RAHEEL PMI-ACP (PMI – Agile Certified Practitioner) MPM (Masters in Project Management) KHOK...

ENTRE PRE NEUR SHIP  PMP (PMI – Project Management Professional) RAHEEL PMI-ACP (PMI – Agile Certified Practitioner) MPM (Masters in Project Management) KHOKHAR SMC (Scrum Master Certified) SFC (Scrum Fundamentals Certified) Six Sigma Yellow Belt Professional MCAD.NET (Microsoft Certified Application Developer) MCP (Microsoft Certified Professional) Co-founder Code Movement Trainer Keynote Speaker /illbeapmp 1200+ hours of technical interviews /in/raheel-Khokhar 1000+ hours of trainings Mr. Rawalpindi (2009) /raheel.ahmad.Khokhar Mr. Zone (2009) /@raheel.khokhar Mr. Punjab (Silver Medal 2012) 2 ATTENDEES INTRODUCTION Name Educational background Professional experience (if any) Expectations from this course 3 AGENDA Introduction Building confidence Why Business? How to? Start With Why? Final tips and takeaways 4 WHAT TO FOLLOW Zero to One (business) Start with why (Self-help) Think and grow rich (personal development) Rework (Self-help) The lean startup (non-fiction) Hit Refresh (Non-fiction) The hard thing about the hard thing (self-help) Good to Great Outliers 5 WHAT IS ENTREPRENEURSHIP ÓN-TRU-PRU'NUR,SHIP Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties to make a profit. BUSINESS VS. ENTREPRENEURSHIP Businessmen run their businesses for the primary purpose of making profits. Entrepreneurs intend to make profits but with the purpose of making a difference. They want to change the world by addressing a problem. They are passionate about providing unique solutions for problems in the community. HOW TO BECOME AN ENTREPRENEUR Invent Discover Innovate Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. Redefine Solve 9 10 THE START DOESN’T MATTER Microsoft Market valuation over $3.x T. (Started from a garage) Apple Market valuation over $2.815 T. (Started from a garage) Amazon Market valuation over $1.761 T. (Started from a garage) Google Market valuation over $1.75 T. (Started from a garage) Facebook Market valuation over $1.206 T. (Started from a dorm room) 11 4TH INDUSTRIAL REVOLUTION 1. Steam Engine (1760-1840) 2. Electricity (1871-1914) 3..Com (1969-Present) 4. Technology (ongoing from the late 20th century) YouTube has over 2.7 billion users and gets a daily traffic of over 122 million, with almost 5 billion videos getting watched every day. Facebook has more than 3.3 billion active users. Instagram currently has more than 700 million active users with more than 60 million photos uploaded per day. Twitter currently has more than 1.4 billion active users. LinkedIn, meanwhile, has more than 1 billion active users and is home to over 130k posts getting published per week, with a high trust and conversion rating from professionals and businesses. FUTURE OF SOFTWARE/ TECHNOLOGY? By 2035, 85% of the jobs our kids will be doing, haven’t even been invented yet. Dell Institute for the Future (IFTF) 14  “Technology is neither the problem nor the solution, it’s just a tool. In the end, these are all messy human problems that need messy human solutions.” - Dr. Vivienne Ming, How to Robot-Proof Your Kids @neuraltheory  The Future of Work: Creative, Adaptive, Problem-Solver Explorer @neuraltheory  PRODUCT LIFE CYCLE - IN THE BIG PICTURE Product life cycle Identify Problem or Opportunity Need Tenders/ Project Project Operation & Salvage Business Case Assessment Bidding Start End Maintenance Point Project life cycle 17 COMPETITION VS MONOPOLY In 2012, when the average airfare each way was $178, the airlines made only 37 cents per passenger trip. Google brought in $50 billion in 2012 (versus $160 billion for the airlines), but it kept 21% of those revenues as profits — more than 100 times the airline industry’s profit margin that year. Google makes so much money that it’s now worth three times more than every U.S. airline combined. The lesson for entrepreneurs is clear: IF you want to create and capture lasting value, don’t build an undifferentiated commodity business. 18  MONOPOLIZATION Famous competitor acquisitions: Microsoft acquired Activision Blizzard for $68.7B in 2022. IBM acquired Red Hat for $34B in 2019. Google bought YouTube for $1.65B in 2006. Today YouTube earns $2.65B for Google every month. Adobe bought Macromedia for $3.4B in 2005. 19 CHARACTERISTICS OF A MONOPOLY Proprietary technology Network Effects Network effects make a product more useful as more people use it. For example, if all your friends are on Facebook, it makes sense for you to join Facebook, too. Economies of Scale Branding Paid advertising, branded stores, luxurious materials, playful keynote speeches, high prices, and even minimalist design are all susceptible to imitation. 20 BUILDING A MONOPOLY Start small and monopolize Scale up (E.g., Amazon) Don’t disrupt Avoid competition as much as possible. Napster’s then-teenage founders, credibly threatened to disrupt the powerful music recording industry in 1999. The next year, they made the cover of Time magazine. A year and a half after that, they ended up in bankruptcy court. 21 WHAT TO DO AND WHAT TO LEARN The next Bill Gates will not build an OS The next Larry Page or Sergey Brin will not make a search engine. The next Mark Zuckerberg won’t create a Facebook. The paradox of teaching entrepreneurship is that such a formula necessarily cannot exist; because every innovation is new and unique, no authority can prescribe in concrete terms how to be innovative. THE PROBLEM It’s hard to develop new things in big organizations, and it’s even harder to do it by yourself. Bureaucratic hierarchies move slowly, and entrenched interests shy away from risk. At the other extreme, a lone genius might create a classic work of art or literature, but he could never create an entire industry. STARTUP The term startup refers to a company in the first stages of operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand. Startups operate on the principle that you need to work with other people. HOW TO GROW Vertical vs. Horizontal (Globalization) Progress Horizontal or extensive progress means copying things that work— going from 1 to n. If you take one typewriter and build 100, you have made horizontal progress. Vertical progress is harder to imagine because it requires doing something nobody else has ever done. Vertical or intensive progress means doing new things - going from 0 to 1. If you have a typewriter and build a word processor, you have made vertical progress. 28 HABITS OF HIGHLY EFFECTIVE ENTREPRENEURS Focus on Culture Build the Right Teams Be Transparent Relentlessly Focus on the Customer/Consumer Establish Influential Support Networks Set and Communicate Clear Goals and Metrics Be Maniacally Focused 30 TIPS FROM THE PROS Tell the truth Be Honest Be the best at what you do, don’t fool people by reading through the internet. Stand out. AI will eradicate commonality. 31 S.C.A.M.P.E.R Substitute Combine Adapt Modify Put to other uses Eliminate Reverse 32 S.C.A.M.P.E.R To Focus on the existing products and how to improve them. It can often be difficult to produce new ideas when you're focusing on an existing product. It's useful for generating ideas by improving existing ones. Ask questions about the 7 prompts. Pick a product > Ask yourself questions. 33 S.C.A.M.P.E.R Substitute Substitute any part Substitute base material Substitute rules Substitute another product with this one Instead of using traditional paper and ink for books, substitute them with e-books and digital readers like Kindle. Substitute gasoline engines in cars with electric motors to create electric vehicles. 34 S.C.A.M.P.E.R Combine Have you tried creating something new by mixing two existing parts of your business? Combine with another product? Combine purpose Combine talent/resources Combining a mobile phone with a camera to create smartphones. Combining a bicycle with a scooter to create a hybrid transportation device like the electric scooter. 35 S.C.A.M.P.E.R Adapt How could you transform your product to fill a gap in the market? Adapt to serve another purpose or use? Who or what could you emulate to adapt this product? Any similar product as yours What inspiration you can get? Adapting traditional taxi services to app-based ridesharing platforms like Uber or Lyft. Adapting shipping containers into affordable and sustainable housing solutions. 36 S.C.A.M.P.E.R Modify Why not try changing the look, feel, or shape of your product? What else you could modify? Modifying traditional light bulbs to LED bulbs for energy efficiency and longevity. Magnifying the size of food portions in fast-food combos to offer more value to customers. 37 S.C.A.M.P.E.R Put to other uses Could your product be useful elsewhere (another industry)? OR Could you adapt it to reach a wider target audience? Recycle the waste to create something new Using shipping containers as pop-up shops or mobile offices. Repurposing plastic bottles as eco-friendly building materials for low-cost housing. 38 S.C.A.M.P.E.R Eliminate Is your product as streamlined as possible? How could you simplify it? Features, parts, or rules to eliminate Make it smaller, faster, lighter, or more fun Take out any part of the product Eliminating physical keys and locks with digital smart locks operated via smartphones. Elaborating on traditional bicycles by adding electric motors to create electric bicycles for easier commuting. 39 S.C.A.M.P.E.R Reverse What would happen if you did the exact opposite of what you’re doing right now? Would you get a different result if you adjusted the sequence? Any Roles could be reversed? Reversing the order of meal preparation by offering meal kits delivered to homes with pre-portioned ingredients and recipes. Reversing the roles of consumers and producers by allowing users to generate content for platforms like YouTube or TikTok. 40 VENTURE CAPITAL FUNDS A venture capital (VC) fund is a sum of money investors commit to investment in early- stage companies. The investors who supply the fund with money are designated as limited partners. The person who manages the fund is called the general partner. Venture capitalists aim to identify, fund, and profit from promising early-stage companies. They raise money from institutions and wealthy people, pool it into a fund, and invest in technology companies that they believe will become more valuable. If they turn out to be right, they take a cut of the returns—usually 20%. The biggest secret in venture capital is that the best investment in a successful fund equals or outperforms the entire rest of the fund combined. 48 VENTURE CAPITAL FUNDS Andreessen Horowitz invested $250,000 in Instagram in 2010. When Facebook bought Instagram just two years later for $1 billion, Andreessen netted $78 million—a 312x return in less than two years. That’s a phenomenal return. But in a weird way it’s not nearly enough, because Andreessen Horowitz has a $1.5 billion fund: If they only wrote $250,000 checks, they would need to find 19 Instagrams just to reach break even. The life of a venture fund is 10 years, the time a startup matures and becomes profitable. 49 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER Whatever your industry, any great business plan must address every one of them. If you don’t have good answers to these questions, you’ll run into lots of “bad luck” and your business will fail. If you nail all seven, you’ll master fortune and succeed. 50 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 1. THE ENGINEERING QUESTION Can you create breakthrough technology instead of incremental improvements? Companies must strive for 10x better because merely incremental improvements often end up meaning no improvement at all for the end user. Only when your product is 10x better can you offer the customer transparent superiority. 51 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 2. THE TIMING QUESTION Is now the right time to start your business? Entering a slow-moving market can be a good strategy, but only if you have a definite and realistic plan to take it over. 52 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 3. THE MONOPOLY QUESTION Are you starting with a big share of a small market? If you can’t monopolize a unique solution for a small market, you’ll be stuck with vicious competition. 53 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 4. THE PEOPLE QUESTION Do you have the right team? Never invest in a tech CEO who wears a suit. Because real technologists wear T- shirts and jeans. There’s nothing wrong with a CEO who can sell, but if he looks like a salesman, he’s probably bad at sales and worse at tech. 54 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 5. THE DISTRIBUTION QUESTION Do you have a way to not just create but deliver your product? 55 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 6. THE DURABILITY QUESTION Will your market position be defensible 10 and 20 years into the future? That starts with asking yourself: what will the world look like 10 and 20 years from now, and how will my business fit in? Every entrepreneur should plan to be the last mover in their market. 56 7 QUESTIONS THAT EVERY BUSINESS MUST ANSWER 7. THE SECRET QUESTION Have you identified a unique opportunity that others didn’t see? Great companies have secrets; specific reasons for success that other people don’t see. 57 TESLA IS A GOOD EXAMPLE OF THIS, GETS 7 OUT OF 7 TECHNOLOGY TIMING Tesla’s technology is so good that 2009 was the time of Clean-Tech, the other car companies rely on it: government of the US was funding. Daimler uses Tesla’s battery packs; Tesla secured a $465 million loan Mercedes-Benz uses a Tesla from the U.S. Department of Energy. powertrain; Toyota uses a Tesla motor. General Motors has even A half-billion-dollar subsidy was created a task force to track Tesla’s unthinkable in the mid-2000s. It’s next moves. even unthinkable today. 58 TESLA IS A GOOD EXAMPLE OF THIS, GETS 7 OUT OF 7 MONOPOLY TEAM Tesla started with a tiny submarket Tesla’s CEO is the consummate that it could dominate: the market engineer and salesman, so it’s not for high-end electric sports cars. surprising that he’s assembled a team that’s very good at both. Now Tesla owns the luxury electric sedan market, too. Elon says: “If you’re at Tesla, you’re choosing to be at the equivalent of Special Forces, not regular Army.” 59 TESLA IS A GOOD EXAMPLE OF THIS, GETS 7 OUT OF 7 DISTRIBUTION DURABILITY Tesla took it so seriously that it The car is second biggest decided to own the entire investment one makes in life. distribution chain. Unlike every other car company, at Tesla sells and services its vehicles in Tesla the founder is still in charge, so its own stores. it’s not going to ease off anytime soon, promising durability to the customers. 60 TESLA IS A GOOD EXAMPLE OF THIS, GETS 7 OUT OF 7 SECRETS Tesla tapped the eco-conscious cool-looking rich people market who want to associate themselves with the Clean-Tech or Green initiative. 61 START WITH WHY How Great Leaders Inspire Everyone to Take Action 62 PEOPLE DON'T BUY WHAT YOU DO; THEY BUY WHY YOU DO IT. 64 The Golden Circle corresponds precisely with the three major levels of the brain. The neocortex is responsible for rational and analytical thought and language. Limbic Brain: The middle two sections comprise the limbic brain. The limbic brain is responsible for all of our feelings, such as trust and loyalty. It is also responsible for all human behavior and all our decision- making, but it has no capacity for language. 65 WHAT Every single company and organization on the planet knows WHAT they do. This is true no matter how big or small, no matter what industry. Everyone is easily able to describe the products or services a company sells, or the job function they have within that system. WHATs are easy to identify. 66 HOW Some companies and people know HOW they do WHAT they do. Whether you call them a “differentiating value proposition,” “proprietary process” or “unique selling proposition,” HOWs are often given to explain how something is different or better. Not as obvious as WHATs, many think these are the differentiating or motivating factors in a decision. It would be false to assume that's all that is required. 67 WHY Very few people or companies can clearly articulate WHY they do WHAT they do. When we say WHY, we don't mean to make money— that's a result. By WHY I mean what is your purpose, cause or belief? WHY does your company exist? WHY do you get out of bed every morning? And WHY should anyone care? 68 ELEVATOR PITCH An elevator pitch, elevator speech, lift speech or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period. A RANDOM ELEVATOR PITCH Hi, my name is Lee Blue, and I’m with Blue Media Web Design. We do web design, graphic design, logos and branding, social media, as well as print marketing and signage. We offer complimentary estimates for all website and digital marketing projects. We also offer free website and SEO audits. You’ll get a modern and responsive website from a company that cares about growing your business. WHY IT IS A BAD EXAMPLE? 1. Boring 6. No call to action 2. Context (Who this is for) 7. No reason to take the action 3. No problem or Pain point discussed 8. No story (no feelings) 4. Not outcome or result offered 9. Forgettable 5. No differentiator 10. No referrals SATRANGI FORMULA 7 Questions Formula: 1. What problem you are solving? 2. How does it feel to have this problem? 3. What do you have that solves the problem? 4. Why does it work (Story > Feelings > Remember > Leads)? 5. Who do you want to respond to your offer? 6. What should they do? 7. How should they do? A GOOD EXAMPLE? Isn’t it crazy how hard it is to get leads for a genuinely good local business? It feels like you have to do everything all the time - build relationships, work on your website, deal with social media… I have a done-for-you lead generation system for local professionals called TheClickFlow. TheClickFlow drives traffic, collects leads, and nurtures your leads into paying clients, all without you having to do anything. If you need more leads but already feel stretched so thin you might snap, we should talk. I’m Lee Blue, and you can reach me at TheClickFlow.com * Introduce yourself at the end after you’ve given them a reason to remember you * The entire pitch is about the client, not you. Even when you’re talking about yourself, it is in the context of how you help people achieve the results they want. * People easily forget what you say, but they remember how they felt. You are linking yourself to that feeling and that’s why they remember you. That’s why you get leads. ONE LINER I help X achieve Y by doing Z. X = Audience Y = Value Z = How Then…… Tell a story…. 75