Entrepreneurship & Innovation

Define Entrepreneurship

extraction of value through the introduction of new products or services, new means of production, or new organizational systems (Adding value to a service)

Define intrapreneurship

the use of entrepreneurial principles within an existing organization (using resources that you already have)

What are the five stages of the process of interapreneurship?

1. define the opportunity or problem, including data collection & analysis

2. build support

3. mobilizing resources

4. executing the project

5. completing the venture

Compare entrepreneurship & intrapreneurship

• need autonomy & freedom, but intrapreneurship must within exiting corporate hierarchy

• Intrpreneurs have existing support network; exntrepreneurs often start without them

• Intrapreneurs often rely on existing organizational funds/ resources; entrepreneurs have to locate/obtain resources for the new venture

• Intrapreneurs face career risk in the event of failure; entrepreneurs face personal financial risk

• Intrapreneurship, the firm can lend its name & reputation to new venture, whereas entrepreneurship image & reputation must be created over time

Define Innovation

type of change where new ideas may lead to changes or breakthroughs that transform practice environments or incremental improvements in existing products, processes, or services

What are the 4 types of innovation ?

• architectural

• disruptive

• incremental

• radical

What are the five skills of an innovator?

1. Associating: connecting seemingly unconnected ideas to form new ones

2. Questioning: asking “why” & “how” as often as possible before arriving at a solution

3. Observing: purposely watching & noting the world around you to gain new insights

4. Experimenting: arriving at a new idea & testing it as soon as possible

5. Networking: seeking out interactions & conversations w/ individuals form different backgrounds & lived experiences then your own

What is a business plan ?

structured & systematic document that guides the development of ideas, providing background information about the opportunity and key team members, while detailing strategies & resources needed to achieve specific goals

Benefits of business planning

• assists in developing a sound business concept w/ a unique niche in a stable & growing industry

• helps to focus on goals/objectives & facilitates understanding of target market

• identifies strengths, weaknesses, and omissions in initial assessment

• Serves as a selling tool

• provides detailed written information in one document so you can solicit opinions & engage stakeholders

Define a summary business plan

• 10-15 pages

• for new ventures in the early stages of development that want to test to see if investors are interested in their idea

Define full business plan

• 25-35 pages

• new ventures who need funding or financing; serves as a blueprint for company’s operations

Define an operational business plan

• 40-100 pages

• primarily for internal audience; creates a blueprint for new venture’s operations and guidance to operational managers

Steps in the development of a business plan for pharmacy programs

1. define the business/program

2. conduct market analysis

3. assess clinical & quality requirements

4. define processes & operations

5. develop a marketing strategy

6. develop financial projections

7. identify an action plan

8. Assess critical risk & opportunities

9. establish an exit plan

Sale Proprietorship

• business owned & operated by an individual

• least complicated, lowest cost, fastest business entity to form

• disadvantage: unlimited liability; lawsuits from the business will likely include the owner’s personal assets & vice versa

General Partnership

• business owned between 2 or more people

• low start up cost & easy to form

• issue of unlimited personal liability & each partner is personally liable for the business decisions of the other partners

Corporation

• most complex

• legal entity, separating business & personal assets

• personal assets protected

• number of administrative duties performed

Limited Liability Company (LLC)

• not as complex to form

• ease of operation with limited liability

• not many administrative requirements

What are the core components of market analysis?

• industry analysis: provide knowledge about the type of business you’re in

• target analysis: determine if you have enough people in the market for profit

• competitive analysis: understand the characteristics of other providers so that business can be positioned favorably compared to competitors

What does SWOT stand for & its meaning?

• Strengths, Weaknesses, Opportunities, Threats

• strategic planning framework used to evaluate strengths, weaknesses, opportunities, and threats

What are the internal & external factors of SWOT?

• Internal: Strength & Weakness

• External: Opportunities & Threats

How to communicate & write a business plan?

Communicate:

• create a written document- actual business plan

• present the business plan orally, usually as part of a formal decision-making process

Writing:

• informative

• balanced in presentation of the proposal

• written w/ a specific audience in mind

• easy to read & understand

• proper organization, grammar, punctuation, and sentence structure

Table of Contents of the business plan

• executive summary

• background & description

• market analysis & strategy

• operational structure & processes

• financial projections

• milestones, schedule, and action plan

• critical risk & opportunities

• exit strategy

• conclusion

• supportive documents