This document appears to be a lecture presentation on entrepreneurship given by John Mueller. The key points covered include: 1. Mueller asks students questions to engage them and find out who has taken an entrepreneurship course, wants to be an entrepreneur, start a company, or be entrepreneurial. 2. Mueller provides some background information about himself, including his education and experience running several companies. 3. The document outlines various topics that will be covered about entrepreneurship, including the definition, opportunity discovery, reasons for starting firms, and firm performance. 4. Mueller shares some career advice for entrepreneurs, emphasizing continuous learning, having a positive attitude, passion for your work, and persistence.

1. Entrepreneurship
John Mueller
November 2011
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2. ASK QUESTIONS!!!
(be engaged)
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3. Who has taken an entrepreneurship
course?
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4. Who wants to be an entrepreneur?
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5. Who wants to start a company?
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6. Who wants to be an entrepreneurial?
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7. Educate Me
Who is an engineer?
What is engineering?
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8. November 14-20
http://unleashingideas.org
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11. http://www.bloomberg.com/tv/shows/techstars/
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12. Friday, November 18, 2011 Powered
by
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14. (SocialQs – 8 members, mostly engineers)
Important Lessons Learned
from Rob McCrea
1. Make sure you have a product that customers will really BUY
2. Know your MARKET & initially make it NARROW (to fit plan)
3. Know HOW you will make MONEY & takes LONGER than
you think
@ Simon Fraser University
Vancouver, Canada
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15. Mueller’s Career Advice (N of 1)
• Learn how to think
– Paul & Elder critical thinking framework
• Preferably get a non-business undergraduate degree
– can get a business graduate degree
• Work for someone else first
• Solve a problem from your knowledge set
• Do what you love
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16. Mueller’s Career Advice for Successful Entrepreneurs
• Be engaged
• Be continuously learning
• Have positive attitude
• Be persistent at what you do
• Be passionate about what you do
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17. Let’s all go home
Have a Happy Thanksgiving
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18. Outline
• Official introduction
• What is entrepreneurship?
• Opportunity discovery / recognition / creation
• Why start a firm?
• Performance of new firms
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19. Information about Mueller
– Education
• BBA – Southern Methodist University (1992)
– Started out in Computer Science (honors)
– Management Information Systems (MIS)
• MBA – University of Illinois / University of Texas (1999)
– Entrepreneurial way to get an MBA
– 4th year Ph.D. Student
• Entrepreneurial finance; resourceful financing
– Interests
• Golf
• Music
• Computers
• Travel
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20. Information about Mueller
– Prior to UofL
• 10+ years running my own companies
• Worked for others – Jack Nicklaus, Hank Haney, Arthur Andersen
• Worked and lived in various places in the USA and the world
– Texas, Illinois, Florida, Colorado
– Europe
– Middle East
– Africa
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21. Information about Mueller
– GolfSolutions.com (founded in 1998)
• Online facility management software
• Golf Investors
• Golf Watercolors
– SmartBond (founded in 2000)
• Working with universities in various places
• SmartBond Remote Explorer
• Timeline Resume
– Colorado Software Architects (bought in 2004)
• 1Disk
• 1Safe
• 1Disk.com (like Dropbox)
• vSERV (storage aggregation)
– Idea Mornings (started in 2011)
• Breakfast talks to spark ideas
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22. Information about Mueller
– My Focus
• Entrepreneurial Finance
• Technology Entrepreneurship
• Sport Entrepreneurship
– Course: Entrepreneurial Finance
• Financial forecasting for new ventures
• New venture financing
– Course: Entrepreneurial Creativity and Innovation
• Entrepreneurship vs. Intrapreneursihp
• Opportunity discovery
• Become more creative; thinking process
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23. So What?
Practice What I Preach
(personal gratification?)
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24. Once an entrepreneur,
Not always an entrepreneur
(being an entrepreneur is episodic)
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25. Ted Leonsis
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26. Introduction
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27. Is Tim Cook an entrepreneur? Was Steve Jobs an entrepreneur?
Is Tim Cook entrepreneurial? Was Steve Jobs entrepreneurial?
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28. Once entrepreneurial,
Always entrepreneurial
(being entrepreneurial is a way of thinking)
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29. “Entrepreneurs can change the world”
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30. Entrepreneurship and Intrapreneurship
– Monster.com (1999)
• “When I grow up, I want to be….” commercial
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31. If I paid you $5 million in total over 40 years to
do the following:
Dig a hole in the morning, fill it in the evening,
and come back and do that again each weekday
for the next 40 years,
would you take the offer?
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32. Break into Separate Rooms
(for 30 minutes)
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33. Entrepreneurship = ?
(word association)
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34. Who IS NOT an entrepreneur?
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35. Who IS an entrepreneur?
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36. What DOES an entrepreneur DO?
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37. What DOESN’T an entrepreneur DO?
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38. Examples of Entrepreneurs
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39. Return from Separate Rooms
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40. Words Used to Describe an Entrepreneur
– …
Visionary; see potential Question conventional wisdom
Ambition Well-rounded; familiar with many things
Driven Curiosity
Think outside of the box At peace; relaxed
See what others don’t Good at thinking; constantly thinking
Promoting Knowledgeable
Networking Initiative
Encouraging Honesty
Ability to dream Confidence
Imagination Good personal skills (can read other people)
Creator Engaging
Innovator Active
Self-made Quality
Take risks Reputation
Explorer Good instinct
Eschew rigid rules Had a purpose
Passionate Fearless; not afraid of failing
Misfit (doesn’t fit the standard mold) Cultivated a good reputation
Goal oriented Accurate business sense
Competitive (heated rivalry) Trustworthy
Rich Integrity
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41. Engineering = Entrepreneurship?
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42. Entrepreneurship = Creativity
= Innovation
= Creative destruction
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43. Can You Draw Curious George?
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46. – My question: Is there a time when there is too much innovation?
– My examples:
• Golf balls and equipment becoming too good
– Thus players are outdating / out-distancing the current courses
– Square grooves
– Drivers – material
– Ball flies more; spins more
• Basketball shoes
– NBA has ruled a certain shoe as being an advantage to players (article)
– Other Examples??
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47. Entrepreneurship = $
$ = Entrepreneurship
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48. Entrepreneurship = Philanthropic Work
= Greedy
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49. Entrepreneurship = Good for Society
= Productive
= Unproductive
= Destructive
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50. Entrepreneurship = Jobs
(new, fast growing firms create jobs)
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51. Entrepreneurship = High Risk
= Uncertainty
= Unknowns, unks
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52. "If you want to be original, you have to accept the uncertainty,
even when it’s uncomfortable, and have the capability to recover
when your organization takes a big risk and fails."
Ed Catmull, President, Pixar Animation Studios
Source: "How Pixar Fosters Collective Creativity, HBR, 2008-09
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53. Entrepreneurship = Cool
= Heroes
= Gunslingers
= Gamblers
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54. – Examples of an Entrepreneur as portrayed by the media
• Larry Page and Sergey Brin
– Founders of Google (1998)
– Is Eric Schmidt (CEO) an entrepreneur?
• Jim Clark and Mark Andreesen
– Founders of Netscape (1994)
• Kevin Plank and Kip Fulks
– Founders of Under Armour (1996 – UofMaryland)
– Created moisture-wicking T-shirt; tired of changing t-shirt
– Breakthrough – Jeff George (Raiders – wearing one of their mock turtlenecks)
– Are these typical entrepreneurs?
– What about…? Are they cool? Are they heroes?
• Dry cleaners
• Mechanics owning their own shop
• Lawyers working in their own practices
• Doctors working in their own practices
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55. Entrepreneurship = Smart People
= Highly Educated
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56. – Does a college education help / hurt entrepreneurial activity?
– Education doesn’t hurt…how you use it depends on how it will
help
– Increase in education, associated with increase in
entrepreneurship activity (Shane, 2003)
• Except at the PhD level
– But, the following have college degrees:
• 317,000 waiters / waitresses (8k have PhDs / pro degrees)
• 80,000 bartenders
• 18,000 parking lot attendants
• 17m Americans with college degrees doing jobs less than their skills
• 5,057 janitors in U.S. with PhDs / professional degrees
• Source: Chronicle of Higher Education and Jon Bischke
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57. Entrepreneurship = Solving Problems
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58. – Example: Fishbowl Water Faucet
– What problem is being addressed?
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59. – Example: Gutter Robot
– What problem is the Gutter Robot (iRobot Looj) addressing?
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60. – Example: Birdie Ball
– What problem is Birdie Ball addressing?
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61. • Don’t get caught up in the idea and your product…
• Example: Audible.com
• Facebook status update
• The main point: Understand and Address the Source of the Problem
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62. Entrepreneurship = Think Differently
= Diff. Perspectives
= See Differently
= Visionary
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63. Envisioning the Future
• Bob Rotella – sports psychologist
• Putt: If you don’t think you will make it, what will happen?
– Focus is in the wrong direction
– Worse, might not even try to make it
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64. What Do You See?
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65. Entrepreneurship = Thinking Out of the Box
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66. How many squares can you see in the graphic?
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68. How many squares can you see in the graphic?
55
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80. Entrepreneurship = Challenge Status Quo
= Critical Thinking
= Break Rules
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81. – By moving one circle, make two rows of 4 circles
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82. – By moving one circle, make two ROWS of 4 circles
– It doesn’t have to be an exact line; i.e. question the rules
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84. Entrepreneurship = Hard Working
= Perseverance
= Persistence
= Passion
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85. James Dyson
– History
• Byam Shaw art school (London)
• Studied architecture
• But he wanted to create, not just draw
• Graduated: worked on marine devices (engineering)
– First Invention
• Ballbarrow
– Assigned patent to company
– Company sold patent, against his will
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86. James Dyson
• Big Invention
– In 1978, local sawmill, with giant cyclone
• Spun sawdust out of the air
• Collecting in a chamber
– 5,127 prototypes
– 15 years
– Dual Cyclone technology
• First vacuum that didn’t lose suction
– Manufacturers rejected product
• Running, to get through difficult times
– Licensed product in Japan in 1983 (G-Force)
– Within 22 months, best selling vacuum in the UK
– Dyson DC101
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87. James Dyson
– …
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88. James Dyson
– Other Inventions
• Washing machine with 2 drums
• Emission-filtering diesel exhausts
• Clean air hand dryers
• New type of school
• ….and more
– Strategy
• Keeping inventions secret
• Protecting the ideas
• Always taking risks
– Quote:
• “It seems as though you can’t carry on, but if you
just get through the pain barrier, you'll see the
end and be okay. Often, just around the corner is
where the solution will happen”
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89. James Dyson
– Ad on the Ball-technology
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90. “Glass breaks, why don’t you fix it?” – Executive to an engineer (circa late 1950s)
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91. Gorilla Glass
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92. Never Summer Industries (Snowboards)
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93. Entrepreneurship = Implementation
= Execution
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95. TNG Pharmaceuticals
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96. Entrepreneurship = Opportunity
= Opportunistic
= Greedy
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97. Entrepreneurship
– Entreprendre (French) – “to undertake“
– Various definitions for entrepreneurship, entrepreneur, entrepreneurial
• Owner-manager (economists)
• Self-employed (economists)
• Founders of new businesses (Davids, 1963; Draheim, 1972)
• Person assuming risk in a business venture (Cantillon, 1755)
• Innovation in business; new combinations (Schumpeter, 1942)
• The pursuit of an opportunity without regard to resources in hand
(Stevensen, 1983)
• The process of discovering, evaluating, and exploiting an
opportunity (Shane and Venkat, 2000)
• and others….it can get messy
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98. Start a new firm or
within a firm
Opportunity Discovery Exploitation
Evaluation
(or recognition or creation) (or exploration)
* Keep evaluation separate from opportunity discovery (idea generation)
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99. Start a new firm or
within a firm
Opportunity Discovery Exploitation
Evaluation
(or recognition or creation) (or exploration)
* Keep evaluation separate from opportunity discovery (idea generation)
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100. Opportunity Discovery
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101. Exercise: Missing Numbers
1 1 1 1 1
1 3 5 7
1 5 13
1 7
1 ?
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102. Exercise: Missing Numbers
1 1 1 1 1
1 3 5 7 9
1 5 13 25
1 7 25
1 9 ?
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103. Exercise: Missing Numbers
1 1 1 1 1
1 3 5 7 9
1 5 13 25 41
1 7 25 63
1 9 41 ?
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104. Exercise: Missing Numbers
1 1 1 1 1
1 3 5 7 9
1 5 13 25 41
1 7 25 63 129
1 9 41 129 ?
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105. Exercise: Missing Numbers
1 1 1 1 1
1 3 5 7 9
1 5 13 25 41
1 7 25 63 129
1 9 41 129 321
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106. What does this exercise have to do
with opportunity discovery?
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107. The Person with the Best Imagination Wins
“Problems don’t get solved by
the smartest or the fastest or the
strongest; they get solved by
the one who sees the
possibilities.” – Dan Roam
– Believe it can be done
– Get in the habit of thinking up ideas
– Keep an idea journal
– Look for better ways to do things
– See problems as opportunities
– Relax, daydream
– Think young
– Be curious
– Inspire yourself
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108. Announcements
– Hiring at Zappos (CEO: Tom Hseih)
– Question they ask in an interview:
Do you consider yourself lucky?
– Study:
• Asked them if they were lucky
• Then had them read a newspaper and count how many photos
• Some headlines said: “There are 37 photos, stop now and collect $100”
• Conclusion: Lucky people tend to be open to a wider realm of options and
solutions – thus can work with more people and come up with more creative
ideas (“be creative and a little weird” – from Zappos culture definition)
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109. The Candle Problem
The Goal
Affix the candle to the wall such that the candle will not drip
wax onto the table.
Use only the materials provided in the picture.
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110. The Candle Problem
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111. The Candle Problem
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112. The Candle Problem
– Example of “Functional Fixedness”; include the box
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113. Be Aware of Environment and Changes in It
– Change Blindness: The Bistro
Source: http://nivea.psycho.univ-paris5.fr/Slow%20changes%20bis/1_BISTRO.HTM
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114. Be Aware of Environment and Changes in It
– Change Blindness: The Workroom
Source: http://nivea.psycho.univ-paris5.fr/Slow%20changes%20bis/5_IVRY.HTM
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115. Be Aware of Environment and Changes in It
– Change Blindness: The Door Study
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116. Why Start a Firm?
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117. Why Not Start a Firm?
– Fear
– Risk aversion
– Lack of resources
– …
“Don't let the fear of the time it will take to accomplish
something stand in the way of your doing it. The time will
pass anyway; we might just as well put that passing time
to the best possible use.”
– Earl Nightingale (1921-1989)
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118. Why Start a Firm?
– Self-realization
– Financial success
– Roles
– Innovation
– Recognition
– Independence (autonomy)
– Necessity (lost job, can’t find job)
– …any others?
– Guy Kawasaki (formerly w/ Apple)
• Make Meaning
– Increase quality of life
– Right a wrong
– Prevent an end to something good
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119. • Guy Kawasaki “Make Meaning” video
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120. Performance of New Firms
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121. Performance of New Firms
• # of firms in the USA
– ~27.4 million (2007)
• # of firms started each year in the USA
– ~670,000 (2007)
• # of firms closed each year in the USA
– ~595,000 (2007)
• % of firms raising from angel investing, venture capital funds, IPO
– Angel investing: 1-3%
– Venture capital funds: 0.3 – 1%
– IPO: < 0.1%
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122. Performance of New Firms
• Failure (Success) rates
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123. Why do new firms fail?
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124. Performance of New Firms
• Business Idea / Model
• Founders (Management)
• Capital Structure
• Environment
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125. Entrepreneurship = Happiness?
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127. IF (
love what you do &
passionate about what you do
) THEN
Entrepreneurship = Happiness &
Success
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128. Is being an entrepreneur for everyone?
No, but
being entrepreneurial is beneficial for many
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129. 129
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130. John Mueller
john.mueller@louisville.edu
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