Financing-Entrepreneurial-Ventures-70-418

Fall200270-397VentureCapitalInvestingAndrewW.HannahFall2002UNDERGRADUATEENTREPRENEURSHIPPROGRAMDonaldH.JonesCenterforEntrepreneurship–PosnerHall231GraduateSchoolofIndustrialAdministrationCarnegieMellonUniversityPittsburgh,PA15213Tel:[phone]August2002UndergraduateEntrepreneurshipProgramTheDonaldH.JonesCenterForEntrepreneurshipGraduateSchoolofIndustrialAdministrationCarnegieMellonUniversityI.IntroductionThecornerstoneoftheUndergraduateEntrepreneurshipProgramconsistsoftwofallsemestercourses,EntrepreneurshipIforbusinessandnon-businessmajors(70-415)andTechnology-BasedEntrepreneurship(70-414),andlooksasfollows:EntrepreneurshipIEntrepreneurshipIITechnology-basedEntrepreneurshipFallSpringTechnology-BasedEntrepreneurshipandsectionsofEntrepreneurshipIassumenobackgroundcoursesinbusinessandthereforewillinvolveadditionalsessionsincoreconceptsinbusiness.Studentswithmajorsinscience,technology,engineering,thearts,orthehumanitieswillbeexposedtofundamentalconceptsandissuesinbusiness,suchasaccounting,finance,marketing,sales,andorganization.VentureCapital:Twoadditionalcoursesdealwithfinancingentrepreneurialventures.VentureCapitalInvesting(70-397fall)teachesstudentshowventurecapitalandangelfinancingwork.FinancingEntrepreneurialVentures(70-418spring)teachesstudentshowtopreparefinancialbusinessplansfortheirventures.Bothcoursesaretaughtbyanexperiencedventurecapitalist.Thebroadmissionoftheprogramisthree-pronged:(1)Todeveloporatleastunderstandanentrepreneurialframeofmindand(2)Toobtainthebasicskillstostartanewventure;(3)Tostimulateself-evaluationforlifedirection.Thismissionistranslatedintothefollowinggoals.II.GoalsA.EntrepreneurialframeofmindSelf-assessmentofone’sstrengthsandweaknesses.Theabilitytoviewlifefromanentrepreneurialperspective--toviewoneselfasaproductthathasadvantagesanddisadvantages,andlearningtoenhancethepositiveswhileminimizingthenegativesthroughfindingandexperimentingwithoptimalniches.Thinkingcreativelyandinnovatively.Anappreciationofthecharacteristicsandmotivationsofentrepreneurs.Understandingtheimportanceofactingasaresponsibleandethicalindividual.Abetterunderstandingofwhatkindofpersonwewanttobe–findingasenseofself.B.BasicskillstostartanewventureAbilitytorecognizeagoodbusinessopportunity;identificationandevaluationofthecharacteristicsthatdetermineagoodbusinessopportunity;enhancementofthestudent’sabilitytodeterminewhetheranideaisanopportunityworthpursuing.Understandingmoneyandotherresources--ithasbeensaidthatmanagersareresourcedriven;entrepreneursareopportunitydriven.Infact,onceentrepreneursfocusonanopportunity,theymustdeterminetherequiredresourcesandhowtogetthemoratleastgettheuseofthem.Rudimentsofbusinessincludingcoreconceptsandissues.Goodpartnersandhowtofindthem.Kindsofagreementsthatneedtobemade.Attractingandbuildingagoodmanagementteam.Understandingtheessenceand“magic”ofleadership.III.AdditionalCommentsretheGoalsTodeterminewhethertheideaisanopportunityforyou.Todothat,youmustfirstunderstandwhatyouwantinlife,andunderstandwhetherthereisamarketforyouridea.Todothat,youmustbecomecomfortableinmeetingand/orcallingstrangers.Thesestrangersarepotentialcustomers,investors,competitors,and/orstrategicpartners.(Itisonlybyinvestigatingthemarketbyprimaryandsecondarymarketresearchthatyoucanconcludewhetherornottheideatrulyisanopportunity.)Toconstructyourowndefinitionofsuccessandplotyourpathstowardsit.Toknowthyselfinthecontextofcreatingandmaintainingproductiverelationshipswithotherpeople.IV.MethodsofAchievingtheGoalsLecturesontopicssuchas:MarketresearchFinancingnewventuresNegotiating“deals”Guestspeakersincluding:EntrepreneursProfessionalsCasestudiesontopicssuchas:EthicsStrategiesandcareerpathsforentrepreneursPersonalinventoryandgoalsettingExercisessuchas:Self-evaluationandpersonalassessmentsVentureOpportunityScreeningGuide(VOSG)MarketingPlanBusinessbasicsinTechnology-BasedEntrepreneurshipTechnology-BasedEntrepreneurshipandsectionsofEntrepreneurshipIwillincludeareviewofbasicbusinessconceptssuchasProfit&LossStatements,BalanceSheets,CashFlow,FinancialRatios,NetPresentValue,andEquity.Theseconceptscanbeveryusefultonon-BAstudents,evenifentrepreneurialcareersarenotplanned.Dividingthegoalsbetweenthetwocourses:Thefirstsemesterwillinvolveanoverviewofentrepreneurship,intrapreneurship,self-evaluation,andtherudimentsofopportunityrecognition,withanemphasisonmarketresearchandcompetitiveanalysis.EntrepreneurshipIIwillgetdeeperintotheactualdevelopmentofabusinessplanincludingdifferentfinancingmethods,specificissuesinmarketingandputtingtogetheramanagementteam,andidentifymilestonesforimplementationoftheplan.Theprojectofdevelopingabusinessplanisagoodexercisetohelpstudentsseeabusinessasatotalworkingunit.CommunicationskillsBothsemesterswillemphasizemeetingpeopleintherealbusinessworldand“learningbydoing”entrepreneurship.Studentswillfindampleopportunitiestodevelopandpracticeeffectivecommunicationskills--bothwrittenandoral.V.ConcludingRemarksTheessenceoftheentrepreneurialviewoflifetacklestheproblemoffindingasenseofselfwhilemaintai