© Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维白亚力教授...

© Prof Ali Beba – All Rights Reserved

创业动态 and 创业者思维

白亚力教授

亚洲家族企业与创业研究中心副主任


Prof. Ali Beba

Associate Director - Center for Asian Family Business and Entrepreneurship

Studies

DYNAMICS OF E’SHIP & MIND-SET OF E’SHKUST Business School–Shenzhen Campus11 December 2011


Presentation Topics

1. E’ship: Present Status and Its Future in HK/ China

2. Mind-Set of E’s / Personal Operating Systems

What are the important values, back-ground, culture and must haves for

becoming a successful entrepreneur?

3. Business Plans

What are they and why are they needed? What are the critical elements

in preparation and presentation of a successful Business Plan?

4. E’ship @ HKUST

Dynamics of E’ship & Mind-set of Entrepreneur’s 3


1. E’SHIP: PRESENT STATUS AND ITS FUTURE IN HK / CHINA

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Description of E’ship

Creates Monetary Wealth for Individuals as well as Large Corporations

Creates Social Impact (Social E’ship) / Social Business (no-loss and no

dividends)

Multidisciplinary and dynamic nature

Creates wealth and new jobs

But: Over 50% of Small Businesses fail within the 1st year and 95% within the first five years

But: Over 50% of Small Businesses fail within the 1st year and 95% within the first five years

Source: US SBA



Description of E’s: Business people

“Be a seed planter, not a bean counter.”



E’ship: Grand Opportunity for HK / China

28.0% of 8.89 million will be over 65 in 2039

12.8% of 7.00 million were over 65 in 2009

“ .. City’s sustainable development will hinge on whether its labor force can

boost its productivity, whether the city can open up new areas for

economic growth and whether it can attract more young people to

settle..”Source: HK Census and Statistics Department: Statement by Fung Hing-wang, Commissioner, (30 July 2010)



E’ship in HK and in China

“...China and HK have the healthiest entrepreneurial anatomies. Their

nascent and new entrepreneurs appear to be the most growth-oriented,

with nearly 20% of them anticipating high-growth...” (*)

Source: (*) Global Entrepreneurship Monitor, 2008



E’ship Issues

92% of HK’s GDP derived from service sector and 98% of HK’s companies are

micro-enterprises (<50 employees) – Limited resources for R&D and innovation

Family Businesses (represent a significant proportion of business) differ widely

from the West in succession planning, family governance, professionalism and

financing

Insufficient and fragmented R&D, non-structured teaching and small number of

outreach activities in E’ship

Small number of incubation centers and techno parks

Knowledge gap between academicians and practitioners



E’ship Issues (Continued)

In China it takes 38 days to complete procedures to start a business, compared to

the average of 5.7 days in OECD countries.

Copyrights, patents, brand names, trademarks, and trade secrets appear to be

routinely violated

Overall, China lacks legal, regulatory and Governance transparency

Innovation mostly by foreign investors (Fortune, 5 July 2010)

In addition, China needs a cultural shift. “…innovation can more quickly gain a

foothold in an entrepreneurship-friendly and failure-tolerating culture..”

Overcoming these issues will accelerate China’s transition to greater economic

freedom


2. MIND-SET OF E’S / PERSONAL OPERATING SYSTEMS (POS)

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Dynamics of Entrepreneurship

1) Product / Service Product /Service Knowledge Compelling Benefits

2) Team Multitasking Self Motivating

5) Mind Setor

Entrepreneur’s Personal Operating System (POS)

3) Management Tools Sales Marketing Financing

4) Working Environment Lean Fast



Mind-Set: Entrepreneur’s POS

Optimism (positive thinking)

Ability to learn from mistakes

Initiative

Courage

Imagination

Aggressive problem (=opportunities) solvers

Responsibility and ccommitment

Honesty and integrity

Maturity



Mind-Set: Entrepreneur’s POS (Cont)

Confidence

Determination

Energy

Intelligence

Creativity/innovation

(Quick) Decision Making

Independence

Calculated risk taking

Knowledge (product/market/technology)

Leadership: Ability to Influence

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Dynamics of E’ship & Mind-set of Entrepreneur’s


Mind-Set: Entrepreneur’s POS (Cont)

Disciplined and hard working:

“..If I find 10,000 ways something won't work, I haven't failed. I am not

discouraged, because every wrong attempt discarded is another step

forward..."

(Thomas Jefferson)



Typology of E’ship Mind- Sets: Risk vs. Profit

Level of Personal Financial Risk

Level of

Profite Motive

Low High

Low Risk Avoiding Risk Accepting

Activity Seeking Activity Seeking

High

Risk Avoiding Risk Accepting

Profit Seeking Profit Seeking



3. BUSINESS PLANS

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BPs: E’ship Road-maps Translating Issues/Needs Into Opportunities/Actions

Product/Service (what are we selling?)

Customer (to whom are we selling it?)

Process and compelling benefits (how are we selling it?)

Distribution (how do we reach the customer?)

Finance (what are the prices, costs and investments?)

Administration (and how do we manage all this?)

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Maslow's Hierarchy of Needs

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.6. Cognitive needs - knowledge, meaning, etc.7. Aesthetic needs - appreciation and search for beauty, balance, form, etc.8. Transcendence needs - helping others to achieve self actualization



What Goes in a BP?

1) Description of the business

2) Marketing

3) Finance

4) Management

No single formula for developing a business plan: They are like snowflakes. They look alike, but each one is unique and different.

No single formula for developing a business plan: They are like snowflakes. They look alike, but each one is unique and different.



Executive Summary – Very Important

Written last

Provides an a reliable snapshot of your company

Explains who you are, what you do and why

Max 2 pages

Purpose:

Give reader a basic understanding about your company: Creates appetite

to learn more about your business



Tips for Successful BPs

1. BPs should tell a compelling story about your business, explaining who,

what, when, where, how and why

2. BPs should be focused and clear. It’s not about the number of pages or

style of cover

3. The plan should define specific business objectives and goals with

general parameters to guide the organization

4. Writing a business plan should force logic and discipline into a business

5. A good business plan is a living document. It should be updated regularly



4. E’SHIP @ HKUST

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© Prof Ali Beba – All Rights Reserved 24

Five career tracks1. General Management

in China2. Finance3. Marketing4. Consulting5. Entrepreneurship

HKUST MBA Career Tracks



Best E’ship Programs are Based on:

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c) Outreach Activities

Partnerships with other schools allowing access to their e’ship programs

Number of clubs and organizations they offer for students

Number of competitions (BP, innovation) as well as number of officially

sponsored mentorship programs they have

IMPORTANT TO NOTE: ANNUAL HKUST BP COMP (TARGET: MAY 2011)

Amount of entrepreneurial scholarship offerings they provide

Intensity of outreach activities with strong NGOs and governmental bodies

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Top 12 E’Ship Programs (U.S. News Ranking)1. Babson College

2. Stanford

3. MIT (Sloan)

4. Harvard

5. Pennsylvania (Wharton)

6. Indiana (Kelley)

7. Berkeley (Haas)

8. Southern Cal (Marshall)

9. Texas-Austin (McCombs)

10. Arizona (Eller)

11. Northwestern (Kellogg)

12. Michigan (Ross)

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Goal of HKUST E’ship track: Be a member of this list


Existing Electives for E’ship Track Spring 2011

1. Venture Capital and Private Equity (FINA 539) (2 credits)

2. Entrepreneurial Finance and Family Business (FINA 691I) (2 credits)

3. International Growth (MGMT 650H) (1 credit)

4. Family Business (SBMT 601R) (1 credit)

Detailed content: http://mba.ust.hk/ftmba/program/electives.htm)

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New Electives for E’ship Track(2 Credits)

1. Venture Capital Perspective on E’ship: What E’s Need to Know About

VCs? (Prof. Po Chi Wu)

2. Corporate E’ship and New Business Venturing (Dr. Wouter Stam)

3. E’ship: Power of Business Plans for Creation of Wealth and New Jobs

(Prof. Ali Beba)

_________

1. Strategy Workshop for E’s – (Dr. Chris Doran) (open to BP competing

students only, no credit)

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APPENDICES

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DETAILS FOR BUSINESS PLANS

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Title Page

Company Name and its coordinates

(Addres, Phone/Fax Numbers, e-mail address, internet site)

Date

Prepared by…



Table of Contents

1. Table of Contents……………………………………………Pg. No.

2. Executive Summary…………………………………………

3. Business Description & Vision…………………………

4. Definition of the Market…………………………………

5. Description of Products and Services………………

6. Organization & Management…………………………

7. Marketing and Sales Strategy…………………………

8. Financial Management……………………………………

9. Appendices………………………………………………………



Executive Summary

Written last

Provides an a reliable snapshot of your company

Explains who you are, what you do and why

Max 2 pages

Purpose:

Give reader a basic understanding about your company: Creates appetite

to learn more about your business



Business Description

Mission: Purpose of Business

Vision: Statement on company growth

Business goals and objectives

Brief history of the business

Key company managers /employees

Purpose:

Describe what the business stands for

Tell your perception of the company’s growth potential

Outline specific goals and objectives of the business

Give background information about the company



Definition of the Market

Describe business industry and outlook

Define critical needs of your perceived or existing market

Identify your target market

Provide a general profile of your targeted clients

Describe what share of the market you currently have and/or anticipate

Purpose:

Provide basic information about the industry and customer needs fulfilled

Define the scope and share of your business market, plus target customers



Description of Products and Services

Specifically describe all of your products and services

Explain how your products and services are competitive

If applicable, reference a picture/ brochure of your p’s/services, which would

be included in the BP’s appendix

Purpose:

Explain why you are in business

What your products and services are and how much they sell for

How and why your products & services are competitive



Organization & Management

Provide description how your company is organized+ organigram

Describe legal structure of your business (partnership, corporation, etc.)

Identify necessary or special licenses and/or permits you need

Provide brief bio’s of key managers

Purpose:

Describe legal form of ownership

Who the leaders are in your business as well as their roles

Flow of operations within the firm (split of roles & responsibilities)



Marketing and Sales Strategy

Identify and describe your market – who your customers are and what the

demand is for your products & services

Describe your channels of distribution

Explain your sales strategy, specific to pricing, promotion, products and place

(4Ps)

Purpose:

Explain who your market is and how you will reach it

How will you apply pricing, promotion, product diversification and channel

distribution to sell your products and services



Financial Management

New Business Estimate of start-up costs Projected balance sheet (1 yr forward) / Projected income statement (1 yr forward) /

Projected Cash Flow Statement (12 months forward)

Existing Business Balance sheets (last 3 years) / Income statements (last 3 years) / Cash flow statement

(12 months)

Purpose Provide the reader with a good understanding of your financial capacity and/or

projections Show that: NPV >0; Pay-Back Period: Acceptable; IRR > inflation rate



Appendices

Company brochures

Resumes of key managers/employees

List of business equipment (if applicable)

Copies of press articles and advertisements (if available)

Pictures of your business location and products (optional)

Information supporting growth of industry and/or products (optional)

Key business agreements, such as lease, contracts, etc. (optional)



Political, Economic, Social and Technological (PEST) Market Analysis Tool

Simple & quick business measurement tool for understanding market

growth / decline, the position, potential and direction for a business.

Used for business and strategic planning, marketing planning, business

and product development and research reports

Four key perspectives (all external)

Source: http://www.businessballs.com/



Political, Economic, Social and Technological (PEST) Market Analysis ToolPoliticalecological/environmentalcurrent/ future legislationinternational legislationregulatory bodies and processesgovernment policiesgovernment term and changetrading policiesfunding, grants and initiativeshome market pressure-groupsinternational pressure- groupswars and conflicts

Economicalhome economy economy trendsoverseas economies general taxation taxation specific to product/servicesseasonality issuesmarket/trade cyclesspecific industry factorsmarket routes trendsdistribution trendscustomer/end-usersinterest/ exchange ratesinternational trade and monetary issues

Sociallifestyle trendsdemographicsconsumer attitudes and opinionsmedia viewslaw changes affecting social factorsbrand, company, technology imageconsumer buying patternsfashion and role modelsmajor events and influencesbuying access and trendsethnic/religious factorsadvertising and publicityethical issues

Technologicalcompeting technology developmentresearch fundingassociated/dependent technologiesreplacement technology/solutionsmaturity of technologymanufacturing maturity and capacityinformation and communicationsconsumer buying mechanisms/technologytechnology legislationinnovation potentialtechnology access, licensing, patentsintellectual property issuesglobal communications

Source: http://www.businessballs.com/



SWOT TemplatePOSITIVE NEGATIVE

Strengths (Maintain, Build and Leverage)

Weakness (Remedy or Exit)

Opportunities (Prioritize and Optimize),

Threats (Counter)

INTE

RNAL

EXTE

RNAL



SWOT Template Advantages of proposition? Capabilities? Competitive advantages? USP's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioral? Management cover, succession? Philosophy and values?

• Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations? Processes and systems, etc? Management cover, succession?

Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USP's? Tactics: eg, surprise, major contracts? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences

Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy - home, abroad? Seasonality, weather effects?

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© Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维白亚力教授...

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Transcript of © Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维白亚力教授...

© Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维 白 亚力 教授...

Documents

Transcript of © Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维 白 亚力 教授...

© Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维白亚力教授...

Transcript of © Prof Ali Beba – All Rights Reserved 创业动态 and 创业者思维白亚力教授...