LECTURE 1

300 millions entrepreneurs in the world (survey in 40 countries) A

growing interest for that kind of business
Entreprenors are important to grow the economy (creation of jobs) and
change it (innovation Half of inventions since WWII)
Process of destructive creation (Schumpeter) : To emerge, a new economy
need to destroy the old one (Services economy vs Manufacturing
industry). For example : Some jobs disapear and new one are created.
Different types of entreprenors : Profit start-up ; social entrepreneurship,
start-up launched by big firms
The entrepreneurial process :
-

Ideas
Assessing opportunity
Business Plan development
Resource assembly
Launch
Growth
Harvest
LECTURE 2

Difference between Idea&opportunity : An opportunity is a favorable

set of circumstances that creates the need for a new product,
service or business idea and a way to fulfill its profitability
whereas an idea is just a thought, an impression
Its important to distinguish between idea and opportunity because many
business fail because they dont have a real opportunity, just an idea.
Where do opportunities come from ?
- Changes in technology or production (Internet)
- change in market or society (way of life)
- complacent organization that no more innovate.
How identify opportunities ?
1. Observing trends Economic forces, Social forces, technological
advances, political and regulatory changes then existing Business,
product and/or services create new business products and services
ideas.
(Example of new trends/opportunies raising middle class in developing
countries, Baby-boomers).

2. Solve a identified problem You notice a problem and no available or

reliable solution to it so create a new produt/service to solve it. (Example :
Norton antivirus software)
Skills of a good entreprenors : experience (helps to identify opportunities),
social network (most of entreprenors get their idea with their relations),
cognitives factors(ability of the entreprenor to treat information and
recognize opportunities), creativity.
How generate ideas ?
-

Brainstorming. Generate a large range of ideas in a short time. Rules

No criticism, free-wheeling, session move quickly, leap-frogging
( ?)
Focus group : Group of 5 to 10 people with same skills, charateristics
who focus on issues. There is a moderator who runs the discuss and
try to get the better of people.
Survey
Others techniques Customer advisory boards in big companies or
Day-in-the-life (an entreprenor/employee spend a day with a
customer)
LECTURE 3

How do assess the atractiveness of an opportunity ?

1. Feasibility analysis (has to be done before spending too much money in
the business) needs 4 components to be good :
-

Product/service feasibility
Industry/market feasibility
Organization feas.
Financial feas.

Feasibility analysis also requires to : Create a concept statement which is a

one page description of the business ;
Include informations : description of the product, intented target market,
benefits of the product, positioning of the product/service, Selling and
distribution methods, about the founders.
2. POCD FRAMEWORK :
People : Know (experience and skills) and Known (whom they know and
who know them ?)
Opportunity :
-

Market size
5 forces (PORTER)

Can customer be reached cost effectively ?

Cash requirements.

Context : Demography, technology, availability of capital,

regulation/deregulation
Change in the context are like to happen ? Favorable or not ?
Deals : Key strategic and financial partners
From whom you reach money ? Is the deal fair for all parties involved ?
Managing risk :
-

Analyse what could go wrong ?

Start on a restricted area and test to see how the market respond.
Identify alternatives
Breakeven analysis
Cash flow curves
Fishbone analysis ( ?)
Risk payoff diagrams.

Breakeven formula : Q = FixedCost/(UnitPrice VariableCostPerUnit)

Burn rate is the rate at which a new business uses up its venture capital to
finance overhead before generating positive CF
LECTURE 4
Definition Business Model (BM) : succinctly explains how the firm
puts together resources to deliver something of value to customer while
retaining profit for itself
Famous business model : Subscription-based ; Razor and blades ; the
cutting out the middle man (Eliminate intermediaire), auction business
model (Like Amazon or Ebay),
Good BM : based on realistic assumptions about customers, costs and
capabilities of the firm. Clearly presetend cash flow, revenues..
Bad BM : Misreading customers needs/expectations, Utterly unsound
economics.
How improve a BM ?
-

Primary and secondary research about customers, costs..

Inspire from successful BM.
In case of trouble, prepare a plan B.
Fishbone analysis (See PTT)
Using 5 forces analysis (Threat of New entrants, Buyers power,
Suppliers power, threat of substitute, rivalry among firms) Answer
the question : Should i enter this market ? (See PTT for more details
about 5 forces)