entrepreneurship 101 for early career scientists - agu · alaina g. levine quantum success...

Entrepreneurship 101

for Early Career Scientists

Alaina G. Levine

Quantum Success Solutions

AGU Career Center

19 November 2013

Copyright, 2011,Alaina G. Levine

© Alaina G. Levine, 2013

Alaina G. Levine Quantum Success Solutions

Our Plan for Today

Skills needed to be an entrepreneur

Transitioning from scientist to

entrepreneur

The role of innovation

Elements an entrepreneurial venture


Congratulations!

You have the advantage!

Scientist Business leader, Entrepreneur

Business leader ≠ > Scientist

You CREATE the VALUE!

You can be a successful tech entrepreneur and business leader


Congratulations!

You have another advantage!

Entrepreneurship is linked to Innovation

Innovation is required for successful

science and engineering careers

Mindset training as an entrepreneur can

help you in science innovation

Triumphant, blissful scientific careers


Who is an Entrepreneur?

Driven to victory – nothing will stop you

Self-starter, go-getter, think beyond realm of possibilities

See opps where others see probs

Control your own destiny, responsible for own work

Willing to give up “safety net” and benefits of a regular paycheck/job

Change agent, flexible

Understand you have to make a profit

From Abrams, “Passion to Profits”, 2008


What is the purpose of any business?

To make money

You do this by providing VALUE:

Solving problems

Cutting costs

Increasing sales

NOTE: EVERY Organization is a biz!


Entrepreneurship…

Way of thinking, reasoning, acting that is

Opportunity obsessed

Holistic in approach

Leadership balanced

An Opportunity

is attractive, durable, timely

Anchored in a product or service

Creates/adds VALUE for its buyer or end user

Sustainable

From Timmons, “New Venture Creation”


The Necessary Transition

from Scientist

to Entrepreneur


The Scientist

Science is my life Introverted vs extroverted

Highly intelligent

Devoted to the fundamental science/technology/engineering

Always thinking about my STEM problem Science or technology-driven problem solving

Self-motivated

For scientists and eng researchers: In some cases, very patient (years and years to solve a problem)


The Scientist

Inquisitive

Open-minded about the way things work,

Don’t accept things because someone tells me the way things are, I want to find out for myself

Logical decision-maker bifurcation diagram

Measurement of Success: Inwardly-driven or outwardly-driven

Goal in academic STEM: understand the science/engineering then go on to the next project


The Entrepreneur

“Show me the Money”

Highly intelligent

Very focused on Solving problems

Increasing sales

Cutting costs

Beating the competition

Always thinking about the vision of the business

Market-driven problem solving


The Entrepreneur

Measurement of Success: outwardly-

driven

Global view of the business venture

Sees venture in terms of all aspects (team, $,

management, organization, distribution,

marketing, risk, etc.)

Goal: find the right alternative to meet the

market need, make a profit and then go on

Vision of Problem Solving

Business Person

Inventor

Engineer

Scientist

Problem Solving –

science (knowledge

generation)

Problem Solving –

marketing (profit

generation)


Keys for scientists to remember

Forget about STEM for the beauty of it Science/engineering in this endeavor is a

means: Serves as the foundation of an innovation that

brings a solution (to a problem) that people will pay for

Understand customer is king w/o customer, tech innovations would never see

light of day Business leader/entrepreneur gets those

customers

Marketing is everything Every organization is a business


Innovation and the

Entrepreneurial

Venture


Innovation Thoughts

In general, entrepreneurial ventures need:

Tech innovation -- as the basis of the product or

service

Business innovation -- to ensure successful

delivery of value to the customer


What we can learn about innovation

from Steve Jobs

Not All Innovation Is Equal Technical innovation will earn you lots of adoring fans (think Apple, pre-ipod). Business-model innovation will earn you lots of money (think Apple, post-ipod).

Innovate for Cash, Not Cachet If your cool new thing doesn't generate enough money to cover costs and make a profit, it isn't innovation. It's art.

Don't Hoard Your Goodies Getting to market on time and at the right price is vital. If that means licensing your idea to an outside manufacturer or marketer, do it.

From, Hawn, “If He's So Smart...Steve Jobs, Apple, and the

Limits of Innovation”, Fast Company, 1/04


What we can learn about innovation

from Steve Jobs

Innovation Doesn't Generate Growth. Management Does If you covet awards for creativity, go to Hollywood. Managers get rewarded for results, which come from customers.

Attention Deficit Has No Place Here Every innovation worth doing deserves your commitment. Don't leap from one new thing to another. If your creation doesn't appear important to you, it won't be important to anyone else.

From Hawn, “If He's So Smart...Steve Jobs, Apple, and the

Limits of Innovation”, Fast Company, 1/04


A successful Business

Has a vision – what do you see for your

business?

Solves a societal/market prob (innovation)

Has a Brand – a promise of value

Has a plan to fulfill the vision and deliver

the value to customers who will pay

Has a talented team which understands

the value


All You Need is Plans…

Early-stage Business Plan

Marketing Plan

Financing Plan

Business Plan for Commercialization


Early Stage Business Plan

Goals

Precursor to the biz plan

Gain knowledge of steps needed to develop a viable technology from an innovation

Gain experience in conducting market research

Formalize the near term conceptual planning and next steps to move from where the innovation is today towards actually launching a company to provide a product based upon the innovation


Entrepreneurial elements

The problem you are addressing

The solution you propose – the innovation

The Market – who cares and who/how will buy? End user and customer may be different

Risk Assessment

The Business Model – how will you make money?

The technological needs to commercialize

Intellectual Property

The Finance Model and Financials

Operations – manufacturing, distribution

Your Company organization

Exit Strategy


What is the problem?

What is the business, societal, or technological problem that creates the need for a solution?

Whose problem is this?

How prevalent is the problem?

What is the historical basis for the problem?

How long has this problem existed?

How are people addressing the problem today?

Are there solutions to the problem that exist now?


What is the innovation?

(What is the solution?)

How does this innovation actually solve the problem or reduce its effect?

How does it work?

What does this innovation do?

Does it provide a long- or short-term solution? Does it last?

Is this a new innovation, or an improved version of a previous solution?

What will actually be sold?

How is the innovation able to be transferred into a product that people will buy?


What is the market?

Who will benefit from the innovation?

Who are the customers who will buy it?

How big is the market?

Where is the market located?

What are your Strengths, Weaknesses, Opportunities, and Threats (SWOT)?

What is the current competition, and what is your competitive advantage?

What other firms or organizations might also introduce such an innovation?

What are the current/historical industry trends?


What is the market?

Why has the social or market need been missed up to this point?

How will customers respond to the innovation?

How will it be marketed?

Are there any special challenges that must be addressed to meet a particular market segment?

What is the market share for this product?


What is the business model?

How will your company make money?

How will you price your product?

How will you sell and market your product?

What is your distribution method?

How will you obtain the necessary materials and resources (raw, operations support, logistical issues, IP) to be able to produce and sell your product?

How will the company stay innovative and competitive?


The Finance Model –

how will you finance it?

Your credit cards

F,F and Fs

Bank loans

Angels – regionally-based, personal focus

Venture Capitalists – more than $

Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR) Phase 1 – feasibility ($150k)

Phase 2 – prototype ($1M)

Federally-funded, different agencies

no repayment


Intellectual Property

Who owns the IP?

What kind of IP do you have?

Trade secret

Copyright

Trademark

Patent – doesn’t protect secret, just excludes others

from making and selling it


Your exit strategy

How will investors get their ROI?

Where do you want the business to be in X

years?

What will be your milestones and schedule?

What is the exit strategy?

Will you sell your innovation?

Will you license it?

Will you sell your company?

To whom?


Resources

Abrams, From Passion to Profits

Abrams, The Successful Business Plan

Timmons, New Venture Creation


Go for it!

Scientists have distinct skills making you prime candidates for successful entrepreneurs

Do your research

tech innovation + biz innovation needed for a successful biz

Know your market

You must sell something

Will take more time, energy and possibly $ than you originally thought

You will work harder than ever

Ok to fail…

You can do it!


AGU Fall Meeting 2013

Fall Meeting website: “Job Seekers”

Thurs, 11/12: One-on-One career consultations available

My talks:

Monday 12/9:

11:00 AM - 12:00 PM: Transitioning Your Career from Academia to

Industry

2:00 PM - 3:00 PM: The Biggest Mistakes You Should Never Make

in the Postdoc And How to Avoid or Recover From Them

Tuesday 12/10: 12:00 PM - 1:00 PM: Career Lounge talk –Open Q&A

Wed 12/11:

11:00 AM - 12:00 PM: Accessing Hidden Career Opportunities

through Networking

3:00 PM - 4:00 PM: Negotiation strategies and tactics


Alaina G. Levine

Quantum Success Solutions

[email protected]

www.alainalevine.com

facebook.com/QuantumSuccessSolutions

@alainaglevine

www.linkedin.com Group – “Alaina’s Alumni”

**Email me for a free resume template!

Author: “Networking for Nerds” (Wiley 2014)

Speaking: keynotes, workshops, training

Private Career Consulting

Writing: white papers, reports, articles

http://www.alainalevine.com/

http://www.facebook.com/quantumsuccesssolutions



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entrepreneurship 101 for early career scientists - agu · alaina g. levine quantum success...

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