uofr marketing class feb 14 2013
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UofR Marketing Class
February 14, 2013
How to Become
A Successful
Entrepreneur or Intrapreneur
HJR background
• Xerox Corp
• PriceWaterhouse Coopers MCS
• Founded 8 technology or service businesses: – consulting, restaurant, offsite records
management, fire safes (2), fire technology, computer sales & service, SaaS software solutions
• Sold 5 businesses
• SafeSite Records Management (NYSE: IRM) – Sold for $62M
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What you will learn today …
• How to be an Entre- or Intrapreneur
– Traits & Differences
• Thinkers vs. Doers
• Contracts
• How to be profitable
• Sales & Net Profit
• Customer Buying & Sales factors
• Supply Chain costs
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Are you a Small business entrepreneur?
• Who has owned or run a small business?
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Entre/Intrepreneural traits
• Integrity • Vision • Not afraid to fail … learn by it … move on • Be a change agent • Recognize needs & problems • Develop affordable solutions • Independent thinker • Passionate about your beliefs • Perseverance • Communications skills, esp. listening • Admit you do not have all the answers • Don’t worry about what others think
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Entre/Intrepreneural differences
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Entrepreneur Intrapreneur
Risk taken Huge Minimal
Salary + benefits Minimal Corporate std.
Investment Own $$$ Corporate $$$
Reward Big potential Minimal
Ability to execute solution
Green light Constrained by politics & other
priorities
Problem solving approaches: Thinker vs. Doer
Generalization: – Thinker
• 95% of the solution upfront • 2 years later - near 100% best solution
– Doer • 60% of the solution upfront • 2 years later - owns the market
• DON’T OVERTHINK THE SOLUTION • You won’t get it all right the first time • Consumers don’t care about 100% • Get it to market, listen to customers, then make it
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Business startup contracts
• Get Agreements in writing early on – Who does what & other commitments
• Definition of Friendship
– Changes as sales increase
• Prenup agreements with business partners
• “DON’T TRUST ME” – “In God We Trust,” all others have contracts – Contracts are for successors
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The key to profitability
• REDUCE THE CYCLE TIME – Manufacturing
– Customer service
– Restaurants
– Every product & service
– Investor ROI
• The shorter the cycle, the more $ you make
• Create annuity opportunities: Paychex
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What’s more important
Sales or Net Profit
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What’s more important Sales or Net Profit
• DEPENDS ON THE STAGE
–Start up Sales
–Early stage Sales
–Growth Sales & profit
–Established Sales & profit
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Customer Buying & Sales Factors
• What’s the product strategy
• Market research: Who will buy it + how many
• Why
• How much will they pay
• Marketing plan
• Sales/distribution channels
– What industry(s) channels
– Complementary & bundled sales
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Product costs
Which is the best supply chain option?
Product cost (ex-works)
• China $2.25
• Los Angeles $2.65
• Rochester $3.18
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Possible landed costs
• LANDED = DELIVERED TO MY DOCK • Cost • Insurance • Freight to US port • Freight to distribution center • Import duties & taxes • Bank fees • Brokerage fees • Other fees • Import/export documentation must all be in order,
else delay of payments
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Which is the best supply chain option?
• Whichever option:
– Minimizes most risk – Minimizes time to market – Optimizes cash flow
Product cost Landed cost • China $2.00 $3.05
• Los Angeles $2.65 $3.07
• Rochester $3.08 $3.18
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Resources: Innovation Institute & SCORE
http://www.wini2.com/
• Evaluates ideas for US$250
• Formerly Wal-Mart Innovation Network
• (573) 999-4518
SCORE
http://www.scorerochester.org/help/steps.php
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