This document contains 27 slides summarizing various topics related to entrepreneurship and business success. The slides discuss factors such as business survival rates over time, income comparisons between employees and entrepreneurs, job satisfaction levels, traits of successful entrepreneurs, strategies for growing a business, the importance of commitment, focus, planning and obtaining funding for new ventures. Later slides cover developing a company mission statement, building an effective team, and models for leadership.
7. Individual Differences
Traits Motivation
• Bad Risk • Work For
Assessors Himself
• Overconfident • Task Oriented
• Fewer Regrets
7
8. Sample Case:
Threatened with $1.1MM lawsuit
Offer to settle for $0.3MM (6% of company
profits)
At 99% likely to prevail, you’d go to court
At 1% likely to prevail, you’d settle
Choose the lowest chance to win that
would prompt you to go to court
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9. Sample Case:
Chickens don’t fight in red light
Chickens can be fitted with red-tinted
contact lenses, resulting in fewer attacks
Lenses cost $0.02 each, but save $0.50 per
bird
Initial results with a local farmer are positive
Is this a good idea? Should you
pursue it?
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10. Overconfidence
◦ More likely to believe they knew certain facts
Illusion of Control
◦ More likely to believe that they can achieve success
where others can’t
Law of Small Numbers
◦ Willing to believe results from small data sets
10
12. Individual Differences
Traits Background/Skills Motivation
• Disagreeable • More Education • Growth
• Conscientious • More Experience Orientation
• Desire to Succeed • Older • Organizational
• More Time in Orientation
Industry
• Ventured Before
12
13. Likelihood of Rapid Growth
3.5x
3.0x
2.5x
2.0x
1.5x
1.0x
0.5x
0.0x
Industry College Motivation Mission Growth
Experience Education to Succeed Statement Goals
13
14. When the entrepreneur’s role is less about
what s/he can do, and more about what s/he
can get the organization can do.
14
15. Task Orientation Hierarchic Orientation
• Achieve by own efforts • Compete
• Attribute success to self • Exercise power over others
• Avoid risk and chance • Assert oneself
• Get feedback • Distinctive status
• Introduce innovations • Be a manager
• Think about the future
15
17. Commit
◦ Work full time
◦ Start marketing sooner
◦ Build a team
◦ Do a proper evaluation of the biz
Focus
◦ Get more capital
◦ Establish financial controls
◦ Focus on one thing
◦ Set goals
17
18. Relative Likelihood of Disbanding (30 Months)
100%
80%
66%
58%
60% 54%
43%
40%
20%
0%
Complete Plan Form Entity Ask for funds Obtain inputs
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19. Improves venture growth
Improves employee commitment
Reduces cost of inputs by aligning suppliers
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20. The reason that your company does what it
does.
Its purpose.
20
21. 3M: To solve unsolved problems.
Merck: To preserve and improve human life.
Nike: To experience the emotion of
competition.
Wal-Mart: To give ordinary folk the chance
to buy the same things and rich people.
Disney: To make people happy.
21
22. A mission statement explains what the
company intends to achieve.
It is realistic, setting you up for success.
It is measurable, so you can know how close
you are to achieving it.
It is meaningful, so people want to get
behind it.
It is time-bound
22
23. References growth
Written down
Frequently communicated
23
24. Stakeholders understand their role
They can see how they fit into the
company’s overall goals
They can recognize and take pride in their
individual contributions
Employees are not mushrooms
24
25. Larger startup teams outperform smaller
teams (up to 4 people)
Distributed leadership outperforms unitary
control
Team cohesion improves sales and profits
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26. Convenience Model:
Access/Similarity
Instrumentality Model:
Based on role need
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27. Recognize your limitations
Learn and grow
Set goals
Commit yourself
Build a team
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