Enterpreneurship

Schedule

Detailed Class Schedule

1 GETTING STARTED [Engel]

Learning Objectives:

Gain an understanding of what ‘high potential’ entrepreneurship is and how the process works

Gain a thorough understanding of course requirements

Distribute questionnaire on student backgrounds and interests

The business plan: Criteria, Oral Presentation as a Pitch

View Start-up.com, a film by Chris Hegedus and Jehane Niujaim, distributed by

Artisan Home Entertainment

Discussion Questions:

1. Correlate the film to the course syllabus. What key topics were addressed?

2. Given the times – What do you think of their opportunity assessment?

3. What are the key issues raised by the film? Prepare a brief list.

2 OPPORTUNITY RECOGNITION [Engel]

Recognizing and Evaluating Opportunities

Learning Objectives:

Develop an understanding of criteria for evaluating business opportunities

Develop a framework for opportunity assessment

Evaluate a business proposal

Case: Intellipost, Inc. Business Plan

Discussion Questions:

Describe and evaluate the core value proposition.

Assuming you had reasonably attractive alternatives, would you choose to pursue this as part of

the founding team? Why?

Does this team have what it takes to achieve it? Strengths, weaknesses, remedial needs?

What are the greatest hurdles to implementation, assuming a reasonable amount of

capital is available?

What would you do in the first 30-60 days?

Required Readings:

Timmons, “The Entrepreneurial Revolution”, Chap. 1, in New Venture Creation (NVC)

Timmons, “The Entrepreneurial Process”, Chap. 2 in NVC

3 Lester Center for Entrepreneurship and Innovation

Haas School of Business

University of California, Berkeley

Stevenson, “A Perspective on Entrepreneurship” in The Entrepreneurial Venture (TEV)

Bhide, “Developing Start-up Strategies” in TEV

Supplemental Readings:

Stevens and Gumpert “The Heart of Entrepreneurship”

Harrell, Inc. “Entrepreneurial Terror”

Timmons, “Myths About Entrepreneurs”

Brokaw, Inc. “Where Great Ideas Come From”

Kaplan, “Developing Ideas and Business Opportunities”, pp. 19-51 in Patterns of

Entrepreneurship

View Start-up.com, a film by Chris Hegedus and Jehane Niujaim, distributed by

Artisan Home Entertainment

Deliverable: #1 student questionnaire: new venture ideas for class project

Berkeley Entrepreneurs Forum, (optional)

3 BUSINESS MODELS [Danner]

The Next BIG Thing – Evaluating Your Teams’ Ideas

Learning Objectives:

Sharpen understanding of Market dynamics and business opportunity

Understanding the implications of the Internet to business opportunity assessment

Evaluate when technologies have the opportunity to be ‘disruptive’

Case: Preview Travel

Required Readings: None

Timmons, “The Opportunity: Creating, Shaping, Recognizing, Seizing”, Chap. 3 in NVC

Timmons, “Screening Venture Opportunities”, Chap. 4 in NVC

Slywotsky, “Market Share is Dead”, Chap. 1 in The Profit Zone

Slywotsky, “the Profit Zone Handbook”, Chap. 15 in The Profit Zone

Supplemental Readings:

Gosh, “Making Sense of the Internet” in TEV [Instructors Note: Good Study questions]

Bhide, “The Questions Every Entrepreneur Must Answer” in TEV

Bhide, “How Entrepreneurs Craft Strategies that Work”

Andrews “The Concept of Corporate Strategy”

Ghemawat, “Sustainable Advantage”

Porter, Chapter 1, Competitive Strategy

Bhide, “The Road Well Traveled” in TEV

Deliverable #2: Preliminary identification of the concept for the business plan and

team composition

4 BUSINESS MODELS [Engel]

Learning Objectives:

Explore different ways of approaching the ‘same’ business

Searching for ‘fit’ – Business model analysis

Case: Technology Data Corp.

4 Lester Center for Entrepreneurship and Innovation

Haas School of Business

University of California, Berkeley

Required Readings

Timmons, “Entrepreneur and the Continuing Internet Revolution”, Chap. 5 in NVC

Timmons, “Franchising”, Chap. 6 in NVC

Supplemental Readings:

HBS “Note on Business Model Analysis For The Entrepreneur”

5 MARKETING and POSITONING [Danner]

Learning Objectives:

Understand Customer Discovery and Validation

Understand How the Customer Development Process effects the business plan

Case: Bang Networks A&B

Required Readings:

Heinman and Sanchez, The New Strategic Selling, Chap. 1-5

Wilson, Guerilla Selling, p. 1-19

Supplemental Readings:

6 BUSINESS PLANS AND FINANCIAL REQUIREMENTS [Engel]

Learning Objectives:

Gain an understanding of the elements of the BP.

Understand the implications of Business Model on Financial Requirements.

Understand how to do financial requirements analysis, determining how much $$ your venture

needs and when.

Cases: Truckit.now

NextTV

Discussion Questions:

Truckit.now

What are the most important elements of the Truckit.now business plan?

How much money does this venture require to achieve operating break-even?

What are the key drivers that affect the capital required? What are the key assumptions?

Which assumptions or key variables would you use in doing scenario of sensitivity analysis?

How much money do you recommend they raise in their first round of venture capital? Why?

NextTV

What do you think of the business opportunity?

What various business models can you identify for this opportunity?

Which business model do you think is best?

How much money do you think this venture will require?

How would you suggest they finance it?

Required Readings:

Timmons, “Resource Requirements”, Chap. 11 in NVC

Timmons, “The Business Plan”, Chap. 12 in NVC

Supplemental Reading:

Gumpert, "What is a Business Plan and Why Should I Write One?"

Sahlman, “Some Thoughts on Business Plans” in TEV

5 Lester Center for Entrepreneurship and Innovation

Haas School of Business

University of California, Berkeley

Rich & Gumpert, “How to Write a Winning Business Plan” in TEV

Stancill, “How Much Money Does Your New Venture Need?”

Sahlman, “The Financial Perspective: What Should Entrepreneurs Know?” in TEV

Deliverable #3: Preliminary draft of Opportunity section of the Business Plan and supporting

power points

UC Berkeley Entrepreneurs Forum (optional)

7 THE ENTREPRENEURIAL TEAM: Assembling the Team [Danner]

Learning Objectives:

Understand central issues about organizing a founding team

Recruiting strategies for key hires in the early stages of new venture development

Compensation design for new ventures

Strategies for leveraging advisors and consultants

Guest Lecturer: Christopher Keene

Case: “Michigan Lighting”

Required Readings:

Timmons, “The New Venture Team, “ Chap. 9 in NVC

Collins, “Who First, Then What”, Chap. 3

Supplemental Readings:

R Reich, “Entrepreneurship Reconsidered: The Team as Hero” in TEV

Timmons, “Compensation Incentives in High Potential Ventures”

Timmons, “The New Venture Team”

Collins, “On Effective and Ineffective Teams”

Opportunity Section presentations, 5 minutes, 4 power point slides max. [First set of teams]

8 Legal/IP/ Entity selection/Product Liability/Risks/Ethics [Danner]

, Fenwick and West

Learning Objectives:

Understand the key legal issues of founding a business, protecting intellectual capital, having

employees, dealing with contractors and service providers, leasing offices and equipment, and

raising money

Case: Palm Computing (A)

Required Readings:

Supplemental Readings:

9 FINANCE: Building a financial Strategy [Engel]

Learning Objectives:

How to build a financial strategy for a new venture

Angel and alternative equity sources – gain an understanding of how it differs and works with

institutional venture capital

Case: Neverfail

6 Lester Center for Entrepreneurship and Innovation

Haas School of Business

University of California, Berkeley

Required Readings:

Timmons, “Entrepreneurial Finance”, Chap. 13 in NVC

Timmons, “Obtaining Venture and Growth Capital”, Chap. 14 in NVC

Supplemental Readings:

Bhide & Stevenson, “Attracting Stakeholders” in TEV

Bhide, “Bootstrap Finance: The Art of Start-Ups” in TEV

Salzman and Doerr, “The Venture Financing Process”

10 FINANCE: Venture Capital [Engel]

Learning Objectives:

Venture capital and how it works – gain an understanding of the structure of the industry,

attributes of appropriate investments, and expected rates of return.

Develop strategies for incrementally building an appreciating equity base

Understand how to structure an angel investor or Venture Capital deal

Case: Jon Hirschtick’s New Venture

Discussion Question:

How should John structure the financing of his venture? How much money, when?

How many rounds? What type of investors?

Required Readings:

Timmons, “the Deal – Valuation, Structure and Negotiation”, Chap. 15 in NVC

Supplemental Readings:

Case and O'Grady, “An Overview of Venture Capital”

Bagley and Dauchy, “Venture Capital” in TEV

UC Berkeley Entrepreneurs Forum (optional)

11 MID-TERM PRESENTATIONS [Engel and Danner]

Mid term in class presentations (10 minutes, 10 power point slides max.)

Deliverable #4: Preliminary draft of partial business plan including opportunity assessment,

marketing and customer acquisition and financial requirement elements of the plan.

12 EXIT AND HARVEST [Engel]

Learning Objectives:

Gain an understanding of the process of going public

Consider the benefits and detriments of achieving liquidity through sale or merger

Gain an appreciation of an investors perspective of various liquidity alternatives

Cases: Amazon.com Going Public

Discussion Questions:

1. Why did Jeff Bezos choose books as an initial category for launching his new company?

2. What is the business model for Amazon.com? How does their business model differ from

that of Barnes & Noble or Borders? How would you value Amazon.com?

7 Lester Center for Entrepreneurship and Innovation

Haas School of Business

University of California, Berkeley

3. Should Amazon.com go public? Why or why not?

4. What are the plausible scenarios for the period leading up to a final pricing meeting, which

typically takes place the night before an IPO? How should management respond to these

scenarios (e.g., is there a price below which Amazon.com should not go public?)

5. What should Joy Covey, the CFO do?

Required Readings:

Timmons, “The Harvest and Beyond”, Chap. 19 in NVC

Supplement Readings:

Bagley and Dauchy, “Going Public” in TEV

Sahlman, “Why Sane People Shouldn't Serve on Public Boards” in TEV

Marver, “Planning the Business for a Future Initial Public Offering

13 FROM BUSINESS PLAN TO REALITY: A TALE OF TWO COMPANIES [Engel and Danner]

Learning Objectives

Understand how different business models and strategies get implemented

Consider the issues of women in leadership

Consider the unique circumstances of BioEntrepreneurship

Required Readings:

None

Supplemental Readings:

None

14 Managing Growth [Engel ]

Learning Objectives:

Investigate how ethical questions effect entrepreneurial strategy and implementation

Understand the challenges of growing the entrepreneurial enterprise, from start-up through the

complet entrepreneurial arc

Required Readings:

Timmons, “Personal Ethics and the Entrepreneur”, Chap. 10 in NVC

Timmons, “Managing Rapid Growth – Entrepreneurship Beyond Start-up”, Chap. 17 in NVC

Supplemental Readings:

Roberts, “The Challenge of Growth” in TEV

Bhidé, “Building the Self-Sustaining Firm” in TEV

Roberts, “Managing Transitions in the Growing Enterprise” in TEV

UC Berkeley Entrepreneurs Forum – UC Berkeley Business Plan Finals REQUIRED

15 DEVELOPING A PERSONAL ENTREPRENEURSHIP STRATEGY [Engel and Danner]

Class Mentors

Learning Objectives:

Integrate what we have learned about collaborating on an entrepreneurial team

Required Readings:

Timmons, “Crafting a Personal Entrepreneurial Strategy”, Chap. 20 in NVC

Course Evaluations

Deliverable #5: Business plans due to instructors via e-mail, plus 6 physical copies

8 Lester Center for Entrepreneurship and Innovation

Haas School of Business

University of California, Berkeley

16 Oral Presentations