Lecture 3: Thinking Like an Entrepreneur PDF

Lecture3: Thinking like an entrepreneur Dr. Amira Gaber Entrepreneurship in Health Care Industry SBEN215 TASK 2 DISCUSSION Interview one entrepreneur in your area and reflect upon their personal and professional characteristics and how these characteristics have contributed to their success as an...

Lecture3: Thinking like an entrepreneur Dr. Amira Gaber Entrepreneurship in Health Care Industry SBEN215 TASK 2 DISCUSSION Interview one entrepreneur in your area and reflect upon their personal and professional characteristics and how these characteristics have contributed to their success as an entrepreneur. Entrepreneurship in Health Care Industry SBEN215 “How does an entrepreneur think while running their business?” “Can I think like an entrepreneur too?” Entrepreneurship in Health Care Industry SBEN215 What are the problems that an entrepreneur would face on a day-to-day basis? ▪ Not knowing how to get customers to buy. ▪ Customers bargaining and not paying the correct price for the product. ▪ ……………………………………………………….. Entrepreneurship in Health Care Industry SBEN215 ▪ Problem-solving is the process of thinking, through which entrepreneurs can come up with many solutions to improve their business. ▪ This process starts with first recognizing what the problems are. Once the problems are known, there are many ways in which an entrepreneur can think of solving them. Entrepreneurship in Health Care Industry SBEN215 problems an entrepreneur may face while running a business 1. Idea What should my business idea be? How do I know that this idea will work? 2. Money How much money should be raised to start a business? 3. Acquiring Material From where to get the material and at what cost? 4. Manufacturing How to manufacture (if it is a product business)? At what price should I sell the product so that I make enough profits? How 5. Pricing do I know what price the customer is willing to pay? How would I tell my customers about business which will attract them to 6. Marketing & Advertising come to me How would the customer buy from me? Will the customer come to me or 7. Selling will I go to the customer? How do I keep a track of the money I am spending and making? How do I 8. Accounting know how much profit I am making? How can I be better than what is already available in the market? How do I 9. Standing out add value to my customer? 10. Growing business How can I grow my business and continue to get better? ▪ Selling fruits and vegetable on a small handcart to different houses. ▪ Struggling to turn the hand-cart when they would have to cross narrow lanes. While turning, he had to lift and rotate the cart many times. ▪ School project  something which would make the life of parents easy. ▪ Steering system for hand-carts controlled by hand, and can be used to lift and rotate the cart. This system was easy and cheap. ▪ mechanic shops  sell it to people who used handcarts. ▪ The product became very popular among a lot of fruits and vegetable sellers, and is now used throughout the country. Entrepreneurship in Health Care Industry SBEN215 ▪ Three ways most entrepreneurs think when they are trying to solve a problem. Creativity Innovation Critical Thinking Entrepreneurship in Health Care Industry SBEN215 ▪ Come up with ideas that others have not thought of before. ▪ Creativity does not mean being artistic or being good at drawing. ▪ An entrepreneur has to believe that they can come up with new ideas to solve a problem. Entrepreneurship in Health Care Industry SBEN215 ▪ Innovation means to think of new ideas and come up with ways to make it work in real life. ▪ Creativity  is about just coming up with an idea ▪ Innovation  is about also coming up with ways to make idea into reality. Entrepreneurship in Health Care Industry SBEN215 ▪ Understand a situation or problem by asking oneself questions (why, what, when, how) and researching about reasons for the situation or a problem. ▪ An entrepreneur has to always think critically when faced with a problem. They just cannot get worried about the problem and not do anything about it. Entrepreneurship in Health Care Industry SBEN215 Entrepreneurship in Health Care Industry SBEN215 ▪ Design Thinking is an efficient way of Problem Solving. ▪ a non-linear, iterative process that teams use to understand users, challenge assumptions, redefine problems and create innovative solutions to prototype and test. Entrepreneurship in Health Care Industry SBEN215  Research Your Users' Needs ▪ Develop a deep understanding of the challenge ▪ Consider the user requirements ▪ Find a solution to their problems ▪ Research the user’s needs ▪ Ask the right questions (survey) ▪ Product Fulfilling their needs Knowing the solutions that did not work for the users help designers prevent from repeating the same unsuitable solutions Entrepreneurship in Health Care Industry SBEN215  State Your Users' Needs and Problems ▪ Accumulate the information gathered during the Empathize stage. ▪ Analyze your observations and synthesize them to define the core problems. ▪ Clearly articulate the problem you want to solve ▪ Define Boundaries of the Problem ▪ Write Problem Statement ▪ Refine Statement. ▪ Constraints and Criteria Entrepreneurship in Health Care Industry SBEN215  Challenge Assumptions and Create Ideas ▪ The solid background of knowledge from the first two phases means you can start to “think outside the box” ▪ look for alternative ways to view the problem and identify innovative solutions to the problem statement you’ve created. ▪ Brainstorm potential solution ▪ Collective Process. ▪ Open discussion. ▪ Sky is the Limit. ▪ Cluster Ideas ▪ Filter Ideas Entrepreneurship in Health Care Industry SBEN215  Start to Create Solutions ▪ This is an experimental phase. ▪ Design a series of prototypes to test all parts of the solution. ▪ The aim is to identify the best possible solution for each problem found. ▪ Your team should produce some inexpensive, scaled-down versions of the product (or specific features found within the product) to investigate the ideas you’ve generated. ▪ Prototypes saves Cost. ▪ Crucial Step before going for large scale. Entrepreneurship in Health Care Industry SBEN215  Try Your Solutions Out ▪ Engage in testing, refine your solution ▪ Evaluators rigorously test the prototypes. ▪ Although this is the final phase, design thinking is iterative: Teams often use the results to redefine one or more further problems. So, you can return to previous stages to make further iterations, alterations and refinements – to find or rule out alternative solutions. ▪ Limited Users. ▪ Feedback. Entrepreneurship in Health Care Industry SBEN215 Entrepreneurship in Health Care Industry SBEN215 ▪ How Design Thinking Transformed Airbnb from a Failing Startup to a Billion Dollar Business https://review.firstround.com/How-design-thinking-transformed-Airbnb-from-failing-startup- to-billion-dollar-business In 2009, Airbnb was close to going bust. Like so many startups, they had launched but barely anyone noticed. The company’s revenue was flatlined at $200 per week. Split between three young founders living in San Francisco, this meant near indefinite losses on zero growth. Entrepreneurship in Health Care Industry SBEN215  Identifying and Solving Problems ▪ Identify problems of a family member/friend, and then think like an entrepreneur to solve their problem. ▪ Come up with three ideas to solve each problem. Do you think this solution will help more people? Can this solution become a business? Entrepreneurship in Health Care Industry SBEN215 Entrepreneurship in Health Care Industry SBEN215