MGMT 159 Final Flash Cards
Week 1 Notes - 1/10/23
Family Office, Office of Wealthy Families
More does not mean Better
DO NOT have to do Chapter 5 for next week
Will have in class quizzes for videos and things that don't have deliverables
WHY do you want to be an entrepreneur?
Important bc it can impact your performance and your life
HOW do you do it?
WHAT do you do first?
HOW do you improve your chances of success?
>>THE ENTREPRENEURIAL REVOLUTION, WHY BUSINESS FAIL AND SUCCEED<<
Job Creation
Fortune 500 no longer creates jobs, new and small firms create virtually ll new jobs
Small businesses employ nearly half of all private sector employees
About 80% of US workers find their jobs in small businesses
Women Owned Businesses
Grow faster than Fortune 500
Innovations
You look at Facebook or Meta, they didnt come from big companies they came from entrepreneurs, INDIVIDUALS
Difficult to foster entrepreneurship in a corporate environment, called intrapreneur
MBAs?
Traditionally, go to work with Fortune 500
They go out, work for another company, say they hate it and start their own company
THE SILENT REVOLUTION (THE DARK SIDE)
What impact do businesses that fail over and over again have on our economy?
According to the SBA, half of new businesses do not last five years
How many make it past $25 million in annual sales?
Less than 1 in 1,000 does this actually happen for companies
Beauty Salons, Independent Pizza Shops, Service Business, Landscaping, etc.
Are they entrepreneurs? A lot of them are not because they are buying themself a job
Motivation and Goals
MONEY
WHY be a business owner
Control
My own destiny and time
Flexibility
Own Hours
Freedom
Be own Boss, Call the Shots
Money
Opportunity to make big $$$
Challenge
Nothing to Something
Legacy
Family Business
Creative Outlet
Opportunity hit in the face
Couldn't pass up
Pushed Into it
REALISTIC ANSWERS
Laid off
Can’t work for someone else
Had no alternative - No one would hire me
Can’t hold a job
Fed up w Firm/ Person whom I worked
They didn’t see or want opportunity
WHY DO BUSINESSES FAIL
Why are the statistics poor?
How do you know when to quit/ not to quit/ are you committed to the venture? For how long?
Commonly Stated Reasons for Failure
REASON UNDERLYING CAUSE
Insufficient Cash Improper Fin. Planning
Lack of sufficient demand Poor Market Planning & Testing
Low profits/ fierce Comp. Poor Business Strategy: Poorly defined business idea, niche
Inability to produce the product
Or service effectively
And efficiently Failure to create a system, implement a strategy
Inability to adapt to changes Planning, Organization, Success, Capital etc. Vision → lose touch of market
Summary, Why Businesses Fail
Poor Cash Planning
Not enough demand for product
Failure to build an organization
>>A More Successful Model?<<
There is a group or type of small business that historically has had a very successful track record
Franchising
Historically: Over 95% of franchises succeed
Now? No one seems to know how
However - Consider the Mindset
>>Independent Start Ups vs Franchising<<
Michael Gerber E-Myth Revisited
Businesses fail have to do with why they started the businesses
Suggests that people that go into business are not entrepreneurs instead they are
Technicians suffering from an entrepreneurial seizure
Mechanics open Car Shops, Pizza Makers make Pizza Shops
Any dummy can run a business mindset, go into business to get rid of their boss and end up working for a lunatic
EX:
Sam designs widget spinners. He knows needs and customers and hates his boss, starts his business. Suddenly, he needs a location, set up a company, takes out garbage, does bookkeeping, now needs to hire all of these people, now all these hats on and no longer JUST a designer. Say he does well and begins to sell, works 80-90 hours per week, gets business going and got some profit, now he needs to stop working so hard so he hires Harry to do the books for him. “Been doing the books, here’s the receipts, do the books”. Harry does books well, more time to work on business, not enough time to hire a shipper for products. Harry hired a shipper since Sam asked him to. Things go well until a customer gets a wrong order or bad product, which leads to customer complaints. Who told you to ship like that? Task was delegated to a new person, not really delegated but advocated. No real organization, processes came secondary, no formal development, no job description. Now Sam feels like he has to do everything himself for things to run smoothly. Did you really get what you signed up for? Did you really get what you want? Are you happy?
They didn't get the freedom they wanted to begin with. This is not the good aspect of it.
Michael Gerber in book says
3 types of Managers
Entrepreneur/ Manager/ Technician
Understand the purpose of the business - Life
Work “on” business rather than “in” business
Create an organization that doesn’t need you
Pretend business is a prototype/ franchise - Ray Crock
You can’t be their everyday if you own 10 locations
The business is the product
Does the best product always win??
Lots of companies have better things that still don't make it.
Look at it as an investor - to sell
ANOTHER WAY - RAY CROCK
Ray Crock found McDonalds
Sold Malted Milk machine found McDonalds Brothers
Most important customer was the franchisee
Envision millions upon millions of these things all over the world
HE WAS IN THE BUSINESS OPPORTUNITY BUSINESS
Competition was other business opportunities
Franchisee didn't care
Goal: Perfect little turn key operation
Refined that system to work in a predictable fashion every single time
Fast food experience then “University of Hamburgerology. Hamburger U”
Must learn the McDonald’s Way and DON'T change it!
It works so you don’t have to!
Ray Crock before AT&T realized the system is the solution
The system is the leverage through which you turn ordinary people into extraordinary performers
Great business depend on Great people
>>SO YOU WANT TO BE AN ENTREPRENEUR?<<
What do you do?
How do you do it right?
Most of the course will be on the early stages of Entrepreneurship.
>>great ppl quote<<
Extraordinary people are hard to keep. Creativity does not come from chaos, it comes from a working system. You want to find people who are better than you and delegate tasks. Every organization needs operations, finance, and marketing.
>>LEAN START UP<<
Entrepreneurial Roadmap
Get Idea
How do people find ideas? From other people complaining, find problems. Find problems wherever there is change.
Evaluate it
Can it be done? Is it worth it? Is there enough of a problem?
Test concept on target market
Change it, Drop it, or Adopt it
Make a model or prototype if necessary — Create MVP
*Develop prelim, business plan
You got to create something in a lot of instances, you have to let people see it to understand it
Prototype will get you a market reaction, then DROP OR CHANGE then ADOPT
Might cost you a lot or a little to market the product
Not until then can you really develop a business plan
A lot of entrepreneurs get an idea, go to the basement, write a business plan without a reaction from their market, only to take it to the market just ot change it
E-Ship, all about change so you get a product market fit
Still making refinements to major market bc you are probably selling to early enthusiasts, then you have to make sure that it fits and will sell to the market itself
What is the 3 most important MUST HAVES
A Business Plan
A Business Plan
A Business Plan
Yet in the entire species, there was never a business plan that met reality
So why have them?
Traditional v. Venture Planning
>>Differences<<
New Ventures
More uncertainty
No track record
Few reliable facts (Must use assumptions, ass outta U and ass outta ME)
Testing Assumptions (the degree to which you can test assumptions depend on a variety of factors. What are they?)
Resources available to conduct tests
Newness of the product or market entered
Industrial v. Consumer Product
Rate of Change in Industry
MVO
ALL Assumptions –
Critical GO/ NO GO
High Impact
Sequence/ Timing
Unconscious
There LOTS of things you’ll miss in the business plan because you dont know the market, you haven’t talked to people who know the market and have not consulted with experts –
New ventures are not just small companies, the idea is to get into the field, get market research, and come down to a value proposition, meaning do you have a solution that is more different than better?
Successful Business Creation
Planning for new venture
Assumption testing
Creating business map
Value proposition
FEASIBILITY STUDY & KEY CONCEPTS
Feasibility Study Goal:
Know, with some degree of certainty, that you have potential for a viable business that is worth pursuing
A start up is a temporary organization designed to search for a reputable and scalable business model
Business Model
VALIDATED LEARNING
Startups exist not just to make stuff, make money or even serve customers
BUILD-MEASURE-LEARN
Fundamental activity of a startup is to:
Turn ideas into products
Measure how customers respond
Learn whether to pivot or persevere
PRIMARY RESEARCH? MVP? BUILD FIRST?
If I had asked my customers they would have said faster horses - Henry Ford
The newer product or the newer the market the more difficult it is for your target audience to understand the concept and value to them
FEASIBLE TESTING - WHAT IT TAKES
PROACTIVE LEARNING REQUIRED
A proactive Orientation is Needed to:
Define your value proposition
Understand your customer needs
Find the product market fit
Week 2 Notes
E-REV
Early Stage
it’s about “do your wall have a demand for the product”
problem is that you don't do a lot of market research
Next Stage
failure to build an organization and delegate
Talk to people evaluate it, change it drop it, make MVP or prototype, MVP might cost a lot of money, maybe just create an outline and get feedback right away before you go to the MVP, get market reaction, adopt it, along the way ur going to create a preliminary business plan
Business plans keeps changing its not a stagnant thing
Startup vs Existing businesses
you don't know people are gonna buy, more certainty, no Track record, no facts, so you rely on assumptions, so you test these assumptions
Sometimes it costs a lot of time and money to do market research
newness of the product or market entered
industrial vs consumer product
resources available to conduct tests
rate of change in the industry
everything is based on emotion when you’re selling
New ventures are not just small companies
get in the field
market research
will the dogs eat the dog food?
Your value proposition
your team
what's more important? Good team or good idea?
Ideas are worth nothing
not always best product that wins but its the entrepreneur and the team of people that make it successful
Successful Business Creation
Planning for a new venture
Assumption testing
Lean Startup Concept: Feasibility Study
come up with idea then you do feasibility study
you want to know with some level of certainty that your business will do good
F. Study & Concept
START UP temp org designed to search for a repeatable and scalable business model
Business Model: How a company creates value for itself while delivering products or services for customers
Validated Learning
startups exist not just to make stuff make money or serve
BUILD - MEASURE - LEARN
Learn whether to pivot or persevere
Lean Startup: Does it always work?
primary research, MVP, Build first?
If i had asked my customers what they wanted, they would have said faster horses
CHALLENGE: Customer discover, find a way to get customers to understand what ur offering, what it has value to them and why its better than the alternatives
Sometimes Lean Startup does not work
Peloton, Tesla, Apple…not possible to build an MVP
backward integration get own stores, build own bikes rather than rely on others
sometimes you come up with idea and its more risky, or idea can be so good u can convince investors
F. Testing - what does it take
takes clear VALUE PROPOSITION
The product features and benefits for your target market(s)
clearly understanding and demonstrating why and how your product or service fits your customers’ needs.
This often requires a wireframe, demo, prototype etc. and/ or a MVP
analyze the context, the business model and potential
The Elevator Pitch
value proposition is the CORE element of your elevator pitch
how can you tell if an entrepreneur is pitching? His lips are moving
Good business plan is a detailed version of a pitch
pitch being a distilled version of the plan
E Pitch
First Impression to Capture Attention - Teaser
Purpose
investors will want to learn more
key attributes
deliver powerfully
convincing
understanding
Value Proposition
background - Pain to solve
WHO’s pain?
How will your company solve it
product/ service
candy, aspirin or medicine
current solutions - competitors
why isnt it being solved
why your solution is better/ different
can you protect your idea (Patent, Know How)
is it sustainable
value proposition
pain (who’s) —> your solution —> how its better
Elevator Pitch Business Model
Do you have a compelling story?
WOW factor
Is it believable? Credible?
Can you pull it off?
Do you have proof of concept?
*validation
that you can build it
its needed
that people will buy at your price
Who are you and who is your team
can you make it happen
do you understand the risks and key success factors
Guidelines Continued
Exit Strategy - sale or business, how get out of company and get the proceeds
investors dont care abt product or the sale, they wanna know how much the business will sell in five years
If a business is worth 1M and i give you 100,000 rn, how are you gna give me back my money? Take it out of profits? Ur not gna have profits for a long time tho
having a good idea of if you make it and you make 5M in profit in 5 years, how much could you sell the company for?
Common Mistakes
no energy and passion
hard to follow
speak too quickly
technical language
out of order
Not enough focus on pain need opportunity or revenue model
too much focus on technology
failure to explain what customer problem you are trying to solve
Elevator pitch
just a teaser
Sections of a Business Plan
executive summary
should be able to stand alone
a little more on what financials would be, not detailed, but at least have what projections are
company
overview: company/ scope/ objective
product
your product/ differentiation benefits
market
opportunity/ competitive segmentation
marketing & sales
how to monetize your product
operations
how you operate in the market
management/personnel
the team needed
YP CASE
Vicarious Experience
Wide Range of Issues
Summary
Student to provide summary of case without opinion or critique
Case questions
What factors created this opportunity in the first place?
CHANGE!
If ur an entrepreneur and want an idea, look for where things are changing in
technology
economy
gov regulation/ laws
societal changes/ trends
If YP and Alan decided to move forward, what share of business should each have and why?
Board of directors make decisions
Share of the business
relative contribution
partnership
ownership vs employee
It looks like YP planning to use own money to fund venture? It is a good idea?
DEPENDS on how much money he is willing to lose
In your opinion, do you think this is a risky business
Risky for Alan bc hes costing his family business’ reputation
Risks
talking about two things when it comes to risks
relative investment
level of uncertainty
*changes over time and with each stage of development
when you start of everything is very uncertain, try to keep the dollars down to make things more certain, every assumption makes you more certain and things change over time
Matter of Perspective
depends on what you’re looking at and what is in ur gut for making a decision
Would you go forward with it?
Yes because there is a proven market need
there's lists of people who want to buy
No because they’re team rn has no computer expertise, relying on computer phd students and they are early in their field
Making Management Happen
Organization Life Cycles
Roles of management
Styles of management
Role - Produce Results (P)
The Four Roles of Management
PRODUCE RESULTS (P)
STYLE - Focused Achiever
is driven for the need for achievement or fear of failure
is skilled and experienced
works hard, appears tireless
is close to the customer (internal or external)
ADMINISTER THE SYSTEMS (A)
STYLE: The analytical
Establish and maintain systematic ways for producing results
ENTREPRENEUR (E)
STYLE: charismatic creative flexible courageous, comfortable with risk and ambiguity
To proactively adapt the organization
INTEGRATE PEOPLE (I)
STYLE: The social, people person who, integrator
Conclusion of 4 roles
necessary and sufficient conditions for good management
WHO WHY HOW WHAT
I, E, A, P
Life Cycle Analysis
Infant Phase
eats cash
all action
Go go phase
growth
spread thin
hires tomorrow needed today
one-person show
adolescent
conflict a v e unclear goals
unproductive meetings
Week 3 Notes
“I haven’t failed…But I have found 10,000 ways that don’t work”
Thomas Edison >>Build, Measure, Learn<<
QUIZ
What name do we give to the relationship between value proposition and customer segments A: Product - Market fit
When planning on an initial product, which is most important? A: Sufficient features to solve a problem for a known group of customers
What is the purpose of an MVP? A: Test it on the market to see if people like it or not
For equally successful businesses and equally sized markets, rank the markets in order of expected time to profitability from shortest to longest. A: Existing market, Clone Market, Resegmentation of markets, New Market
Heather Evans
Why this case?
Oldie but Goodie - Classic
Student - Easy to identify with Heather
He knows Heather
Introduce Raising Capital, Valuation, Dilution issues
Good follow on to YP
1st steps in Entrepreneurial Journey
Summary: *Should never be a critic
Investment Banker AND Model
Fashion sense
she knew market well bc it was her own workplace
Fundraising efforts were pretty bad, difficult time raising capital
relied too much on Arden & Co.
Focused on conservative dresses for workplace
sold through better department and specialty stores
Market
attractive and growing segment
4.3 billion - 5 billion (growing 8%-10%)
Target customers buy at department and specialty stores
Competition
fragmented
lots of little players in the industry
Liz Claiborne only has 3% of market, compares herself a lot and quotes her
Financials
High ROI (Return on Investment) if clothing becomes fashion
Margins are 40-60%
Gross Margin (contribution margin)
difference of selling price and cost of actual items sold
Goes into paying other expenses like rent for lease, material, lawyer, accounting, etc.
thats gross margin per unit to cover expenses, at that point ur break even
price x quantity = profitability
Operating costs = 10%
costs after variable costs that go into it
Selling Price, Cost of Goods Sold
if you sell more pizza, you have more cost
working capital is low
Amount of money you need to grow your business (in this case)
*if you sell to macys for example, they dont pay you for 90 days or longer, basically you borrow money, factors say you owe 1 mil for macys, but they’ll collect it for you, illl give you 800,000, business run like that bc they need money but it takes away 20% of their profits
Fixed Assets Showroom only
Annual growth rates of 100% to 500% typical
Year 2 Projection:
Sales $1,712,500 / Net Income 167,173
When somebody invests in our company, buying shares in companies like venture capitalists, how are they gonna get their return? They’re gonna make a lot of money. How are u gonna sell your stock if the company hasn’t been sold esp in a privately owned small company?
You probably have to get a dividend from company
or wait until it gets sold, difference to what its sold for to what you invested in
small companies need money for growth, stupid if investors give money and make money back right away because u dont see profit til a long period of time
Investor Needs
Ellis - Valuation
Hood - Concerned with license and upside
Greene - Exit and Control (Exit - Investors make money when company is sold)
what happens if i need investment but i want to move my company down to my kid, so how will they make money back? If dont sell the company, agreement, and company doing well, we’ll guarantee u will get a certain return on investment if my company keeps going
how is investor going to control it if things go wrong he doesnt know the market
Return Commensurate with Risk
Path to Liquidity in Reasonable TIme (when are you planning on selling it and how good will the money be by that time?)
Heather Evans Requirements
Asking for 250k
wants more than 50% ownership
License of Heather Evans name
Ability to remain private
when investing for company, they don't really want more than 50% of company, they dont want the entrepreneur to be the employee, they want the entrepreneur to have more of a stake in the company, as company grows, entrepreneur will be diluted and in the end they’re gna want more than 50% because assuming the company will grow, there will be more money down the line
Ability to remain private
question of exit strategy
Are they reasonable?
why? Why not?
Value placed on company
500k
too high too low or just right?
When we value a company like this, do we focus on the work done so far or the work that's going to be put into it and how much its going to be worth in the end, what does the opportunity look like?
If investors get a lower than 50%, is the company worth more than 250k? YES
Why would Heather Evans would succeed
experience, knowledge in the field,plus to her education, and she's determined and has been successful in career so far, clear understanding of market and the customers
Hasn’t created MVP or other words, a sample or prototype, then later on if she grows, can she handle the growth?
3 key success factors?
MANAGEMENT TEAM
MANAGEMENT TEAM
MANAGEMENT TEAM
People (CCC)
Credibility
Track record, what kind of experience do you have
market knowledge
realistic plan
focused on key risks and staged plan (milestones)
Team skills
Commitment
Why are you doing this?
What did you give up to do this?
What will you give up to make this succeed?
Time
Savings, drop in income
Family
Contribution
sweat equity
prototype
market research
business plan
buyers and suppliers lined up
Sources of Capital Valuation
None
Your own funds- (Founders Capital)
Svings, credit card, mortgages line of credit, 401k)
Family, Friends and Fools
Crowdfunding
An Angel Investor or Angel Group
Venture capitalists vs angels, angels typically individual or group investors
Angel = using own money
Venture capital firms raise money from insurance companies and venture funds
Venture capitalist
micro loan or government grant
bank loan or line of credit
Asset based lender
private equity
Why do you wanna start a business why not just buy one? BORROW AGAINST THE COMPANY, once you buy a company with already existing assets and cash flow, bank will loan you money to buy the business, get going faster than starting from scratch
Funding options for Startups
BOOTSTRAPPING
Early sources
founders capital
savings
credit scores
second mortgage
Later sources
lines of credit s
SBA Loans
asset basket lending
accounts receivable
corporate strategic partnership
banks that tend to start ups
government grants (SBIR, DAPPA, etc.)
EQUITY FINANCING
Early Sources
all bootstrapping early sources
capital also fromL
friends family
angels
angel groups
early stage venture capital firms
Later Sources
Different Types of Angel Investors
Use own money to invest in company
no entrepreneurial experience and no financial expertise
Risk Rate of Return
Seed Stage
prototype plan
it’ll cost you, might need a lot of money early on but u have nothing so u have to convince someone to lend you money
70 - 90% per year (target return) investor would basically want the same as the entrepreneur
you don't usually need to put in not much so early on
Startup
market test
sometimes costs a lot of money
after have prototype, product might be working, want probably 50-70% annualized
First
manufacture and ship product
need money
40-60% annualized
you haven't started selling you’ve just done market research
Second
Lead Customer Sales
finally showing some evidence of demand
35-50% annualized
Third
organization built
you've got to prepare for the volume, still not making profits
30-40% annualized
Bridge
Two profit years
got profit but not enough to cover all of your company expenses
30-40%
Startup Valuation
Treasury Stock
when you start a company, uyou decide how much share stock u will have then put it in the treasury
if you have a company, does it matter how may shares you have
if you have 1mil shares and u hand out one, the person has 1/1mil is a very small percentage of company
Dilution - Pre Money/ Post Money
if you say company is worth 1mil, that is called PRE MONEY VALUATION
If my business is worth 1 mil, an as an investor and u put in 250k, my business is now worth 1,250,000, company worth more cause i got cash in, 1.250mil is POST MONEY VALUATION after the investment, money goes up bc money goes into the company
How do you know how much each share is priced at? You put the value on it as an entrepreneur
Week 5 Notes
Liquidity Ratio
Current Ratio: Current Assets/ Current Liability
Quick Ratio: Cash + Accounts Receivable/ Current Liabilities
Safety Ratio
Debt to Equity
What are your liabilities (debt) vs ur equity
The higher the number, the more debt you owe
Debt to Equity Ratio - Leveraging
ROI is 100%, 1M/ 1M = 100%
ROE (equity, if you sell it in one year for 2M), 5 times what you paid, 500%
As a business owner, wouldn't you rather borrow the money and give it back, you can leverage yourself up
Which is more risky?
It’s more risky because you have all this interest to pay and what if the investment doesnt turn out to be worth 2M, and its less than what you invested into it, then bank cant get back their money, bank only makes money on interest, not the profit you’re making individually
2008 market crash, prices of homes went up, banks were giving out loans small interest rate, really good until there was underlying problems with way things were working in the real estate market, so values of buildings and homes plummeted, so people had more debt and people couldn’t pay their debts/ mortgage and lost their homes, so realistically this can also sink your company
Bunyan’s Supply
Gross Profit Ratio: Gross profit/ Sales
Pretax Profit Ratio: Pretax Profit/ Sales
Price elasticity of demand
how much can you increase your prices and not affect demand
Inventory Turnover
COGS/ Inventory
Widget Case: you buy inventory, more you buy inventory, the more cash is going out, if you want to save cash you need less inventory, but you have to have enough inventory to satisfy customers, dont have too much inventory to sit around and not have any money cash bc you need it for operations
How many times can you buy inventory and sell it in a year?
Ask Bunyon why is inventory turnover so low? What would he say? What’s the good things and the bad things?
Notes payable = what you owe the bank
GOOD SIDE Inventory may be high because you are expecting a lot of growth, ur like Home Depot, ur going to find exactly what you want, one stop shot, even if it doesnt sell as quickly BAD SIDE Maybe inventory is not sellable, maybe lumber he has in yard and it rains in cali and the lumber gets warped and he cant sell it anymore, if it’s non sellable then he has to sell it for 50% of the price and take a loss on it, his COGS goes way up compared to the selling price, banks will go in and ask how good inventory is, maybe STYLES change and its not sell able anymore, maybe he isn’t paying attention to his buying, might not be good financial management
Accounts Receivable Turnover
Sales/ Accounts Receiveable
How fast am I getting paid for my goods in a year?
GOOD SIDE loose policy on payments because he wants their business, granting terms, but IS IT WORTH IT? BANKS WILL LOOK AT accredability and accounts receivable aging, BAD SIDE if he has bad debts that people arent paying then that becomes bad debt expense
Statement of Cash flow
waht affects the difference between profits and cash
changes in accounts receivable, depreciationk
For statement, start with net income after tax, depreciation is a non cash expense, so you have to add it back to come up with where your cash is
if accounts receivable go up, that means cash is going down
if people aren’t paying you, relative to income
increase in inventory (have to pay cash), cash is going down
accounts payable, if you increase this meaning ur borrowing more money from suppliers and clients, this means ur not paying suppliers as quickly enough to continue business because you gotta pay them eventually, in addition to borrowing from bank
Accrue expenses, means if you’re decreasing accrue expenses your cash is going down, then if increases then cash going up, then you are not paying cash vs paying cash for your expenses that you owe
MIDTERM
Make sure laptop fully charged and responds is downloaded
50 questions, true false and short answers
simple calculations
respondus has calculator
*be good citizens, ethics text only chapter not covered in lecture so make sure you review it!)
HOW TO PREPARE
Textbook, smart book questions, assessment videos
rewatch the Udacity videos - how to build a startup
Lecture slides, notes from class
Review of Organization Life Cycles
4 roles of management
PRODUCE RESULTS (P) what
style - Producer of Results (P), the focused achiever
is driven by the need for achievement (or the fear of failure)
appears tireless
ADMINISTER THE SYSTEMS (A) how
style - the analytical, detail person
ENREPRENEUR (E) why
style: the creative, charismatic person
INTEGRATE PEOPLE (I) who
style - the social, people person who
LIFE CYCLE ANALYSIS
People dont have enough P in them to start business, lots of convincing talk during courtship phase, if no action all ur doing is having an affair
infant phase, baby phase, company eats cash, got to get inventory and build up from bottom up, all about action
infant mortality, loss of cash loss of commitment
GO GO phase, spread too thin,
FOUNDER TRAP think abt delegation and how to actually do it, growing fast cant pay people to help you
Very easy to get stable
aristocracy early bureaucracy, characterized by people, think of big law firm or corporation and they get all the benefits, boring static place
Entrepreneurial Interview
Start- up and Early Stage
Opportunity Recognition and Analysis
Why did you start it and how did you start it
How did you find opportunity in the first place
original value proposition
i bet you exchanged a lot over the years
how did you get other financing
how do they go to
who are their sources of capital
motivation for starting in the first place
Who were the founders? Partners?
MIDTERM SPECIAL SESSION
Difference Between Cash and Profits
Week 6 - MIDTERM WEEK
DISC - Personality Tests
Week 7 Notes
Professor likes it because he could adjust the lefcture based off our questions
Management Concepts (Management Theory)
introduce how it affects people, how it’ll affect you
what is the role of the leader or manager of an organization
be able to structure something and implement what goals and strategy of the organization/ company are
Learning Objectives
Market has huge impact on valuation of companies
ability to get money, investments, funds
If a leader does not try to create a culture is there a culture within it anyway?
Culture molds itself because of behaviors but some might not be managed
Happiness=Revolutionary Concept
working its way to self management
how you view people working in your environment
get a sense of the culture
think about individualized tasks and if it fits in with the group tasks/ goals
The value of motivation
intrinsic rewards
extrinsic rewards
Motivation and Maslow’s Hierarchy of Needs
Needs to …
safety
social
basic psychological
esteem
*Refer to pyramid on slides
Expectancy theory
What makes you do a particular job?
Week 9 Notes
Ramit Varma: Rev Prep and Breakout Learning (CEO) AirBnb
Set of Habits and Mindsets that makes you a successful entrepreneur
Millions of dollars a year for marketing & branding, real estate for business, direct credibility for someone involved in the market
Core Takeaways
Good ear for what customer needs
Tenacity and optimism to see ideas through, low enough ego, conviction
TENACITY & HUMILITY
Flash of Insight
Trial and Error with something repeatable, train others how to do it, then scale it out so you don’t have to do all the trials 1 on 1 because more people know how to do what you were doing and doing it effectively
THINK *When is it mature or pre-mature to advance
What makes a business complex
75%-80%
Steven Walters Podcast
With positive cash flow, you can do anything
Control the means of production, control the thing you are producing
Week 10 - Eric Friedlander
NY
Public schools
Hs private school for couple years
UofPENN then to UCLA
Europe, post grad, america wasnt the only way to see the world
Republic of philippines had sued nuclear house
Litigation Case
Focus more on Banking
Investment Bank, Corporate finance to understand how banks see finance within business
Construction loan to finish house, sell house, put money back into business and grow business
FINAL - Study Guide [Most likely will be able to be found online]
Chapters
Lectures
Cases
PRE READING MATERIAL AND PRE WORK
Guest speakers
Panapto Recording for the Guest Speakers
Textbook
Terms and content
Only 2 questions with calculations
Partial credit on questions thats applicable