introduction to entrepreneurship 101/finding and validating your idea - entrepreneurship 101...

Our future matters

The quality of that future depends on innovation

Innovation ______ matters

Entrepreneurship ___________ matters

Talent __ matters

You _ matter

The quality of our future depends on you

Tonight’s Agenda I.  Why entrepreneurship matters II.  About MaRS III.  What is entrepreneurship? IV.  Do you have what it takes? V.  Can entrepreneurship be taught? VI.  Course overview VII.  Up-Start! Competition VIII.  Other resources IX.  Finding and validating your idea X.  Stamp cards

I. Why entrepreneurship matters Dennis Whittle on Why Entrepreneurship Matters

Why entrepreneurship matters -  Innovation and entrepreneurship drive productivity and global

competitiveness"

-  The majority of new jobs in modern economies are created "by firms that are less than 5 years old "

-  4-10% of startups become high growth firms – they create "most new jobs, and they create them faster

Young high growth firms create the majority of new jobs in

modern economies.

II. About MaRS -  MaRS is focused on building the next generation of Canadian companies.

We help entrepreneurs start and grow successful new companies, creating the jobs of tomorrow.

-  We connect science, business and capital to improve "

the efficiency and output of the commercialization process. -  MaRS is connected to 16 regional innovation centres that are "

part of the Ontario Network of Entrepreneurs (ONE).

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Gardiner Museum of Ceramic Art Royal Ontario Museum

Women’s College

The MaRS Centre UHN Toronto General"Hospital for Sick children

Entertainment District

Four Seasons Centre

University of Toronto

UHN Princess Margaret Mount Sinai

Art Gallery of Ontario

Royal Conservatory of Music

TIFF & OCAD

Financial District

Toronto Rehab

Ryerson University

MaRS: Urban innovation hub Linking Toronto’s creative and business assets!

The MaRS Centre

University of Toronto Asset Management

PRIVATE! PUBLIC!

How do we help entrepreneurs? Acceleration programs for high growth firms !

Business Advice & Mentorship

Market Research

High Growth Firms

Networks | Talent | Customers | Partners


Access to Capital Business Advice & Mentorship

Market "Research

Entrepreneurship"Education

MaRS Entrepreneurship Programs

Events! Online !Resources!

Workshops!

Comprehensive suite of "integrated, high quality educational programs to support Ontario entrepreneurs through the different stages of growing their businesses.

Memory at Work

Pg 21"

Our Programs

"

Largest and most comprehensive entrepreneurship education in the world

• 60 events/yearwith 11,000 attendeesin 2012

• 120 workshops delivered to 1,500 attendees in 2012

• 18 workbooks• 500 articles• 850 videos• 1,000,000 page views • 300,000 video views

WORKSHOPS

EVENTSONLINE

RESOURCES

Entrepreneurship and innovation series

Entrepreneurship 101 | MaRS Best Practices | MaRS Market Insights MaRS Global Leadership | MaRS Startup Bookclub | MaRS Future Leaders

Entrepreneur’s Toolkit Workshops

179! Number of entrepreneurship educational events programmed "and delivered in 2012

12,415! Number of MaRS entrepreneurship education attendees in 2012

18,995! Hours of live education provided to entrepreneurs in 2012

Online resources Entrepreneur’s Toolkit!

1,200,000!

400,000!

Number of views of articles "and workbooks

Number of videos viewed

Since Launch in Q4, 2009 to December 31, 2012

marsdd.com/toolkit!

Articles | Videos | How-to Guides | Workbooks | Funding Database!

How do we help entrepreneurs? Acceleration programs for high growth firms !

Business Advice & Mentorship

Market Research

High Growth Firms



Access to Capital Business Advice & Mentorship

Market "Research

Entrepreneurship"Education

Who do we work with? MaRS Business Advisory Services!

SECTORS

SUPPORT

ADVISORS

Health | ICT | Cleantech | Social

Due Diligence

Financing

HR & Talent Mgmt Intellectual Property

Market/Competitive Intelligence

Marketing & Sales

Corporate Governance

Financial Management, Accounting, Tax

Legal

Product Development and Marketing

Operations and Process

Strategic Partnerships

Strategy and Business Planning

MaRS Advisor | EIRs | Volunteers

MaRS Advisory Services Clients by sector!

Information Technology, Communication and

Entertainment"46%

Materials and "Advanced Manufacturing"

5%

Cleantech"

18%

Social Purpose"

14%

Life Sciences and Healthcare"

17%

•  1,200+ active clients receiving "Advisory Services"

•  ~65% in GTA

III. What is entrepreneurship?

Entrepreneurship: individuals identify opportunities, allocate resources, and create value through the identification of unmet needs or opportunities. Social entrepreneurship is identifying a social problem and using entrepreneurial principles to organize, create, and manage "a venture to make social change. “The purpose of a business is to find and serve customers profitably.”

—Peter Drucker

“If people aren't calling you crazy, you aren't thinking big enough.”

—Richard Branson

IV. Do you have what it takes?

Entrepreneurs’ capabilities (Five Minds for the Entrepreneurial Future): 1.  Opportunity recognizing mind 2.  Designing mind 3.  Risk managing mind 4.  Resilient mind 5.  Effectuating mind

The key traits of a serial entrepreneur Based on a control group of 17,000 working adults, serial!entrepreneurs tested above or below average in the!following skills: !Above or below the control group’s average

Persuasion Leadership

Personal accountability Goal orientation

Interpersonal skills Analytical problem solving Empathy Planning & organizing Self-management

+1.17 +1.02

+.86 +.48

+.03

-.20 -.80 -.80 -.80

SOURCE TARGET TRAINING INTERNATIONAL | HBR.ORG

What motivates entrepreneurs?

What motivates entrepreneurs? Money is rarely the chief motivator for tech entrepreneurs!!

Impact

68% Experience

27%

Money

5%

Entrepreneur's Oath: I will fail and fail again until I succeed

V. Can entrepreneurship be taught?

TITLE [Helvetica-neue / Bold – 36pt. SUBTITLE [Helvetica-neue / Medium] – 24pt.!Bold text [Helvetica-neue / Medium] – 18pt.!Text [Helvetica-neue / Light] – 18pt. “Most of what you hear about entrepreneurship is all wrong. It’s not magic; it is not mysterious; and it has nothing to do with genes. It’s a discipline and, like any discipline, it can be learned.”

—Peter Drucker

How entrepreneurship education has changed 1.  Business plans rarely survive their first contact with customers/market. Long

range forecasts in multiple areas of uncertainty are essentially fiction. 2.  Startups are NOT smaller versions of large companies. Startups must search for

a business model and product/market fit.

3.  New tools and methodologies specifically for startups are being developed: Steve Blank’s Customer Development, Eric Ries’ Lean Startup, and Osterwalder’s Business Model Canvas.

Startups evolve through discrete stages of development The Startup Genome stages: -Discovery (the value of the innovation is assessed) -Validation (first customers are acquired) -Efficiency (the business model is refined) and -Scale (where growth is aggressive).

Ideation

Discovery

Validation

Efficiency

Scaling

The impact of mentors Startups with a mentor raise significantly more money!

$0"

$500,000"

$1,000,000"

$1,500,000"

$2,000,000"

$2,500,000"

$3,000,000"

$3,500,000"

$4,000,000"

Discovery" Validation" Efficiency" Scale"

Have Helpful Mentors

Don't Have Helpful Mentors

Searching for a business model is different than executing against one


Startups


Startups

Established businesses

Lean definition of a startup: !A temporary organization designed to search for a repeatable and scalable business model

How can this course help you?

-  We can’t create entrepreneurial drive that desire has to come from you"

-  What we can do is help you accelerate your ideas and build your "company by providing you with tools, advice, and networks to help

VI. Course overview Entrepreneurship 101 is a 30-session weekly lecture series with:! -  23 lectures on key topics related to starting and growing a business"

-  2 ‘Lived It Lectures’ with celebrated entrepreneurs

-  4 ‘Meet the Entrepreneurs’ events: sector-specific panel session "with startup entrepreneurs

-  The ‘Up-Start! Competition’: business pitch competition to recognize and reward

promising participants

The Modules: Our building blocks

-  The Journey Begins"

-  Model: How you’ll make money"

-  Market: Targeting your market"

-  Management: Building your team"

-  Money: Funding your business

The journey begins

-  Finding/validating your idea"

-  Different types of entrepreneurship"

-  Nuts and bolts of starting a business"

-  Intro to entrepreneurial management"

-  Value proposition"

-  Product development

Model: How you’ll make money -  IP management"

-  Business model"

-  Business plan and other "

communication tools

Market: Targeting your market / selling -  Market analysis"

-  Marketing communications"

-  Go-to-market strategy"

-  Sales"

-  Negotiations"

Management: Building your A team

-  Board/Governance"

-  Financial planning"

-  Recruiting"

-  Entrepreneurial leadership

Money: Funding your business

-  Bootstrapping"

-  Terms of investment"

-  Raising money from VCs"

-  The pitch

Following Entrepreneurship 101

1.  Attend the live events (get stamps for certificate)"

2.  Watch the live webcasts: www.marsdd.com/ent101-webcasts "

3.  View past videos and other resources online: www.marsdd.com/ent101-online"

4.  Join the Entrepreneurship 101 LinkedIn Group for related "resources and conversations."

5.  Weekly e-newsletters are sent to registrants of the live course.

VII. The Up-Start! Competition MaRS Business Advisory Services!

Business pitch competition open to Ent 101 participants:! -  Stage 1: Those interested in the competition will be invited in November to

attend a series of Entrepreneur’s Toolkit Workshops to help them prepare their application.

-  Stage 2: Apply for the competition in early February. Ten individuals (or teams) will be selected by end of February.

-  Stage 3: Selected participants work with MaRS Advisors on their pitch in March and April.

-  Stage 4: Competition in May (10-minute pitch to panel of investors) for $15,000 first prize.

Up-Start! Competition eligibility

-  Participants must be registered in Ent 101 and have attended at least 20 sessions (20 stamps or watched 20 live webcasts or combination thereof)"

-  Can be a business you wish to start or have already started"

-  Since inception, entrants must have received no more than $100K investment money and earned no more than $100K in cumulative revenue"

-  Eligible ventures must fall into one of four categories: ICT (ICE), cleantech, social ventures, or life sciences and be able to work with an advisor from the ONE network

Up-Start! Competition past winners

-  2013: TrendyMED - invented the MobileIV infusion device -  2012: LifeBike – lightweight electric bike -  2011: Eve Medical (medical device to test for STDs at home) and The Hot Plate

(multimedia platform for quick, simple, affordable cooking) -  2010: Shape Collage – automatic photo collage maker -  2009: Dreamcube – working with Apple on UiRemote (turns iPhone into universal

remote) -  2008 (2nd): CognoVision – Acquired by Intel in 2010, their interactive digital

signage changes screen content in real time based on face detection and tracking technology

VIII. Other resources

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The Funding Portal Search Tool A new tool in the Entrepreneur’s Toolkit to help !entrepreneurs connect to more than $30 billion!in funding sources!

Three easy steps to access:! -  $30 billion in more than 7,000 total

funding sources updated 24/7 -  4,500 government sources in the

form of grants, contributions and tax credits"

-  2,500 private sources, including angel investors and venture capitalists, private equity and bank financing, and foundations and alternate financing

Entrepreneur’s Toolkit Workshops Suggested workshop path:

Pg 64"

•  5 hands on workshop series facilitated by experienced entrepreneurs for groups of 9-15 entrepreneurs individually or together as an intensive program

•  Offer entrepreneurs tools, mentoring and peer feedback

to solve specific problems and build essential business components

"

New Program Launching in October 2013

Pg 65"

IX. Finding your idea Steven Johnson’s ‘Where Good Ideas Come From’

Where ideas come from

-  Solve problems; create products you would use -  Iterate: Ideas are not always flashes of insight, they are often developed and

refined over time -  Reassemble: Creativity is often the act of reassembling many known elements in

new ways -  Collaborate: Talk and listen to those around you -  Ask questions: Find the customer problem and then develop the solution

Validating your idea

-  Validation is testing your value proposition and other assumptions inherent in your business model in the market.

-  Remember startups are searching for a business model, not executing one: validation is key to their survival and success.

-  “There is only one boss. The customer. And they can fire everybody in the

company from the chairman on down, simply by spending their money somewhere else.” - Sam Walton

-  The number one reason start-ups die is because they didn’t have enough customers.

Customer development

Get out of the building! Talk to your customer/s: ! -  Learn more about the problem -  Does your solution solve it? -  Is the problem a ‘bleeding neck wound’ meaning a real problem that they are

they willing to pay to solve? -  Can you build it economically? -  Can you sell it profitably? The goal is to achieve product/market fit via trial and error early on in the development of your product. !

Why startups are hard

1.  High costs of getting first customer


1.  High costs of getting first customer 2.  High costs of getting first product right


1.  High costs of getting first customer 2.  High costs of getting first product right 3.  Long technology/product development cycles


1.  High costs of getting first customer 2.  High costs of getting first product right 3.  Long technology/product development cycles 4.  People not always willing to take risks


1.  High costs of getting first customer 2.  High costs of getting first product right 3.  Long technology/product development cycles 4.  People not always willing to take risks 5.  Finding financing – structure of VC industry, competition

Why now is a good time

1.  Entry barriers not as limited by technology


1.  Entry barriers lowered by technology 2.  98% of startups bootstrapped


1.  Entry barriers lowered by technology 2.  98% of startups bootstrapped 3.  Can reduce risk with customer development/lean startup


1.  Entry barriers lowered by technology 2.  98% of startups bootstrapped 3.  Can reduce risk with customer development/lean startup 4.  Communities to help


1.  Entry barriers lowered by technology 2.  98% of startups bootstrapped 3.  Can reduce risk with customer development/lean startup 4.  Communities to help 5.  Decentralization of funding (crowdsourcing, accelerators, impact investing)


1.  Entry barriers lowered by technology 2.  98% of startups bootstrapped 3.  Can reduce risk with customer development/lean startup 4.  Communities to help 5.  Decentralization of funding (crowdsourcing, accelerators, impact investing) 6.  Availability of tools and information online

X. Stamp cards Pick up your attendance card on the way out. To register it, send your name and card number to: [email protected]. Attendance to 20 out of 30 lectures (or watching live webcasts) required for certificate and/or participation in Up-Start! Competition.

Questions?

Contact us at [email protected]!