KC

Entrepreneurship Concepts

Strengths and Weaknesses in Business Presentation

  • Strengths:

    • Founders had some form of education, which prepared them for the presentation.
    • Poised and clear about their message and targeted investor expectations.
    • Had a compelling personal story behind their product (sourcing ingredients from Toronto).

  • Weaknesses:

    • Sales projections were overly optimistic; only achieving $8-$10 weekly sales.
    • Lack of transparency regarding cost; investors felt they were hiding something.
    • Their sales strategy lacked scalability; limited resources and thought processes for expanding volume.

Sales Projections and Investor Reactions

  • Founders received only one initial offer, indicating a lack of excitement from investors.
  • Investors expect realistic and educated sales numbers; deception does not respect their experience.
  • Caution advised in presentations as investors do not want to waste their time.

Target Market and Marketing Strategy

  • Importance of defining customer profile: focus on consumers seeking healthy options, not necessarily athletes.
  • Product marketing to match average consumer needs, especially targeting the broader market through channels like Walmart and Costco.
  • The need for better scalability and more structured marketing plans to reach target audiences effectively.

Offers and Equity Stakes

  • Fundraising through equity offering should be a last resort due to potential loss of value to founders.
  • Arlene's offer of 20% is less than competitors' 30%, but it is perceived as more passive, hence favorable.
  • Importance of protecting investor interests through realistic offers that incentivize founders to perform.
  • Balancing the equity stakes with the right kind of expertise offered by investors was critical.

Identifying Competition

  • Competitors include products providing caffeine and protein like protein coffee and protein shakes.
  • Significant market presence foresees competition from existing offerings that customers are already familiar with.

Entrepreneurial Mindset

Three Categories of Entrepreneurs:

  1. Classic Entrepreneurs: Focused on a single business, willing to manage all processes.
  2. Serial Entrepreneurs: Continuously seek new ventures, often leading to lack of focus.
  3. Social Entrepreneurs: Aim for profitability while addressing social issues, such as reducing food waste…

Reasons for Choosing Entrepreneurship:

  • Dissatisfaction with traditional work structures.
  • Desire for autonomy and decision-making freedom.
  • Potential for financial success, job security, and improved quality of life.

Key Entrepreneurial Characteristics:

  • Tolerance for failure and flexibility to adapt.
  • Strong vision of future goals and business direction.
  • High energy and creativity levels fueling passion for the business.
  • Comfort with ambiguity and less structure in business environment.

Risks and Strategies in Entrepreneurship

  • Acknowledge inherent business risks but remain passionate to push through struggles.
  • Three options: accept risk, mitigate, or transfer risk.
  • Building a business requires understanding market needs and customer preferences.

Conclusion

  • Importance of networking and learning from other entrepreneurs illustrated with the mention of the Elevate Festival.
  • Engaging with potential investors requires homework, understanding their profiles, and matching business goals with investor capabilities.

Final Thoughts

  • Encourage students to consider personal interests and motivations behind entrepreneurship. Success often requires passion, relationship-building, and resilience against risks.