Different Types of Entrepreneurship - Entrepreneursip 101
•
2 j'aime•5,425 vues
This lecture describes different types of business structures. We discuss some of the early questions that an entrepreneur must ask before committing to a business: * Will your business be a for-profit enterprise, a not-for-profit or somewhere in between? * What are the different requirements and resources necessary for your selected enterprise model? * What type of financing should you target: equity, debt, grant funding or a combination of all three?
Recommandé
Contenu connexe
Tendances
Tendances (20)
En vedette
En vedette (20)
Similaire à Different Types of Entrepreneurship - Entrepreneursip 101
Similaire à Different Types of Entrepreneurship - Entrepreneursip 101 (20)
Plus de MaRS Discovery District
Plus de MaRS Discovery District (20)
Dernier
Dernier (20)
Different Types of Entrepreneurship - Entrepreneursip 101
- 2. Entrepreneurship 101! ! Presented by Dr. Tony Redpath, Vice President, Partner Programs and Allyson Hewitt, Director, Social Entrepreneurship and Director, SiG@MaRS! ! October 2011!
- 3. ¨ Insert text for bullet #1! ¨ Insert text for bullet #2! ¨ Insert text for bullet #3! – Insert text for sub bullet A! – Insert text for sub bullet B! ¨ Insert text for bullet #4! Picture with inset white frame & shadow on image! Pg 3!
- 4. Memory at Work ¨ Why do I want to start this business?! – What is my motivation! ¨ What resources do I need?! – Basement or corporate office! – Shared spaces/ incubators! ¨ How do I fit into the rest of the world?! – Is my product and/or services unique?! – Have others tried this before?! ¨ What is my business model?! – For profit! – Not-for-profit! – Co-operative! – Hybrid! Pg 4!
- 5. Target Zone Grant Funded Revenue Social Social Ventures Tradi;onal Non-‐Profit Genera;ng NFP Purpose (B Corps – L3C) Business (Charity) (Social Enterprise) Business Co-‐opera3ve Structure Social (Charitable) Financial (Commercial) RETURN Pg 5!
- 6. Memory at Work CONSULTING! ¨ Key Characteristics! – Multiple participants, diverse focus, variable size, leverage core assets to provide access to market and advice! ¨ Examples! – Hatch Associates/ Professional Consulting Firms! – Aperio/ Venture Deli! ¨ Benefits & Risks of Model! – Low capital costs and minimal input! – Liability insurance, lack of support! Pg 6!
- 7. Memory at Work SERVICES! Pg 7!
- 8. Memory at Work SERVICES! ¨ Key Characteristics! – Speciality business serving existing businesses! ¨ Examples! ¨ Benefits & Risks of Model! – Online software as a service! – Capital costs can be high; labs services, servers! Pg 8!
- 9. Memory at Work Advise. Convene. Accelerate. Do good- er Photo: Chris Chapman This is John Mighton of JUMP Math. We worked together to take his innovative venture to the next level. Do good better. This is SiG@MaRS. marsdd.com/sig Pg 9!
- 10. Memory at Work PRODUCTS! Pg 10!
- 11. Memory at Work PRODUCTS! ¨ Key Characteristics! – Tangible offering (pharmaceutical compound, medical device, consumer product)! ¨ Examples! ! ¨ Benefits & Risks of Model! – High development costs; market traction! – Production costs high, outsource?! – Potential for scale - huge! Pg 11!
- 12. Memory at Work PRODUCTS! Pg 12!
- 13. Memory at Work ¨ Forms of Financing! ! – Debt - borrow from someone, using an asset as security; rate & time period to be negotiated! ! – Equity - sell a piece of your venture to someone in exchange for an investment in the venture! ! – Bootstrap - self-fund and reinvest all profits for growth ! ! – Fundraising: grants/ foundations/ government funding/ corporate sponsorship/ members (co- ops)! Pg 13!
- 14. Memory at Work A quick primer on debt vs equity:! ! Debt: - gets paid back first, before any dividends ! get paid ! !- secured by asset (the companyʼs, yours)! !+ once the debt is repaid (with interest of ! course), the lender gets nothing else! ! Equity: + never has to be “repaid”! ! - keeps on “paying” forever! ! -/+ you now have an investor partner who ! is in this, like you, for the long haul! Pg 14!
- 15. The Lemonade Stand Example! Assume you’re 10 years old and you need $20 to set up a lemonade stand Revenues Debt 50:50 Equity Rain $10 lender loses $10 partner loses $15 entrepreneur gets $0 entrepreneur gets $5 Cloud $30 lender is even partner loses $5 entrepreneur gets $10 entrepreneur gets $15 Sun $50 lender is even partner makes $5 entrepreneur gets $30 entrepreneur gets $25
- 16. Memory at Work Pg 16!
- 17. Memory at Work ¨ The 3Fʼs again – Friends, Family and Fools! – The turkey principle! ! ¨ Angels (aka high net worth individuals)! – Generally like to invest in areas that they have worked in or are comfortable with! – Can add valuable hands-on experience! – http://www.angelinvestor.ca/! – http://www.mapleleafangels.com/186103_186104.html! ! ¨ Venture Capital Funds! – Different funds invest at different stages in the growth of a company! – http://www.cvca.ca/! Pg 17!
- 18. Memory at Work ! ¨ Proof of Principle / Idea to Innova;on – www.ResearchNet.com – www.nserc-‐crsng.gc.ca/index_eng.asp ¨ NRC -‐ IRAP – hPp://irap-‐pari.nrc-‐cnrc.gc.ca/main_e.html ¨ Founda;ons: – Ontario Trillium Founda;on -‐ www.trilliumfounda;on.org – Gates Founda;on – www.gatesfounda;on.org Pg 18!
- 19. The Financing Life Cycle Public Markets Venture Capital Seed Funds Angels Grants Risk Concept Start-up Growth Expansion
- 20. The Financing Life Cycle Public Markets Venture Capital Seed Funds Angels Grants Risk Concept Start-up Growth Expansion
- 21. The Financing Life Cycle Risk Grants Concept Start-up Growth Expansion
- 22. Memory at Work Pg 22!
- 23. Memory at Work ¨ Technology Risks! ¨ Market Risks! – Stage of development! – Market size, dynamics and – Proof of concept! growth potential! – Prototype product! – Route to market, access, scalability! ! – USPs of the products or services ¨ Intellectual Property Risks! ! – Nature of the invention! ¨ Execution Risks! – Scope of the invention! – IP form: patent, know-how, – Knowledge of the market, software! networks! ! – Skills required to move the enterprise through all stages of development! – Reputation in the marketplace! Pg 23!
- 24. Memory at Work ¨ Mission drift ! – Balancing a Social (or Environmental) and Financial Bottom Line ! ¨ Execution risk ! – Knowledge of the market, networks! – Skills required to move the enterprise through all stages of development! – Reputation in the marketplace! ¨ General lack of understanding in the global marketplace! – People understand charity and business but creating a new sector is not without its challenges – we better have fun while we are doing! ! Pg 24!
- 25. Tony Redpath – tredpath@marsdd.com and Allyson Hewitt – ahewitt@marsdd.com!