Enterprise Development & Entrepreneurial Thinking
Willamette University MBA
Wade T. Brooks
Entrepreneurial Thinkingis designed to let you access the minds of expert entrepreneurs who have lived the entire gamut of entrepreneurial experience – including failures and successes, building new ventures from scratch and growing them into public companies, as well as creating value within large organizations and through social ventures.
In Entrepreneurial Thinkingwe will discuss and learn about the art and science of “creating something from nothing” – assessing your resources, marshaling new ones, and starting a venture. Throughout the course I will challenge you to think about how you can transform current realities into valuable new possibilities. And you will learn to use commonly available resources (your intelligence, insight, energy, initiative, educational background and personal relationships) to create, finance, and build new opportunities of every kind. Entrepreneurship is not primarily about new ventures or “small” business or “early-stage” business, nor even exclusively about for-profit business. It is rather a method of creative problem solving in business and a logic for taking action in a variety of settings where business can make a positive difference.
In a world undergoing continuous change, the ability to think “like an entrepreneur” has become a core skill of the managerial mind and the leadership ethos in virtually every sphere of human activity, and “entrepreneurial management” has become the quintessence of good management practice. Entrepreneurial Thinkingwill push you to develop a particular attitude and state of mind that is well suited to dealing with a future that is not only unknown, but is actually unknowable; an artful, insightful and innovative mentality rather than just business “administration”; and a creative and proactive stance toward the society you live in, not merely an adaptive or critical one.
Learning Objectives
- Understand entrepreneurship as a method, and how expert entrepreneurs think about creating new value.
- Learn to anticipate common early stage problems, and proactively manage risk.
- Understand how opportunities and entrepreneurs fit together.
- Develop personal confidence in their ability to launch.
- Connect these entrepreneurial principles for creating new value to non-profit and government organizations, not just for profit entities.
Course Expectations: What The Course Is About And What It Is Not
- The course is designed to help develop attitudes and skills that are crucial for becoming a creative businessperson in a variety of settings.
- Through cases and readings we will address questions such as:
- What is entrepreneurial thinking and how is it different?
- What is a good business opportunity; where does it come from?
- How do you value ideas that have no market as yet?
- How can you make good decisions in the face of an unknowable future?
- What decisions/actions are required to transform an idea into an opportunity, and an opportunity into a growing venture?
- What are the critical challenges in creating a new venture from scratch?
- What does it take to transform something existing into something new?
- What are the alternative sources of seed resources and capital?
- What are the central risks & uncertainties in entrepreneurship and what are some ways of managing them: economically, psychologically?
- What is failure and how do you separate the failure of the venture from the failure of the individual? How do you fail intelligently in a venture but succeed in your career and life?
- The course asks the above questions in a variety of contexts: for-profit and not-for-profit, start-up, international, growth, lifestyle businesses, hi-tech enterprises,government,and social ventures.
- Underlying the whole course is a provocative historical reality: All enduring firms begin as start-ups and all start-ups begin with a vicious cycle -no product implies no customers; no customers implies no revenues; no revenues implies no cash for investment; no investment implies no legitimacy and no credibility; no legitimacy implies no resources; no resources implies no product. It is out of commonly available resources that we transform this vicious cycle into a virtuous one where new products, new ventures, and new markets come into existence and thrive.
- The common resources we all possess are talent, intelligence, time, energy, and contacts.
- What most of us don’t have is financial capital.
The bottom line of this course is for you to understand how to use your commonly available resources to build viable, productive, enduring organizations that create real value at the same time that you achieve your most cherished aspirations – personal, professional, and societal.
5.The course is not about writing a business plan.
The reasons include:
- Tremendous codified knowledge is already available in books/software.
- Without a real idea/insight writing a business plan is a meaningless exercise.
- If you have a genuine insight and you are credible, the business plan will get written!
- Other courses will cover it.
- This course is about getting into a position where writing a business plan makes sense.
- Business plans constitute just one tool in the entrepreneur’s arsenal - this course is about getting a feel for the entire arsenal.
- “No business plan survives first contact with a customer.”
6.This course cannot guarantee that you will become an entrepreneur, but you will develop a mind-set, attitude and skills that are the necessary hallmark of successful value creators. At the very least it will change the way you think about entrepreneurs and entrepreneurship and help you deal more effectively with a world in which entrepreneurship is a key driver of change.
7. The second half of the class will focus on engagement and the first steps you will need to take to start a company. This is designed to get you past the initial hurdles and potential pitfalls and focus on value creating activities.
8.Whether in business, government, or non-profit settings, entrepreneurship is critical in creating value. Unique and insightful solutions implemented with effectual entrepreneurship principles can be a major differentiator for you in your organization. Entrepreneurial initiatives have proven to drive growth and success in even the most complex of organizations. Individual entrepreneurial drive is pragmatic and adaptive in nature and forces business, government, or non-profit organization to remain agile in the face of ever changing market conditions.
Evaluation & Grading
Real Start Paper (Individual)
Produce a report on anorganization in one of these three categorize: Product, Service, and Non-Profit or Government; identifying what it took to launch them. This will involve interviewing the people that launched it. Examples of what needs to be covered include: beginning resources, opportunity creation as things developed,financial resources required, partnership arrangements,learning from first customers, early hires, and key early challenges. 30% of the grade is based on each report.
Real Start Presentation (Team)
Produce a report and presentation with a team of your peers on an organization in one of these three categorize: Product, Service, and Non-Profit or Government; identifying what it took to launch them. This will involve interviewing the people that launched it. Examples of what needs to be covered include: beginning resources, opportunity creation as things developed, financial resources required, partnership arrangements, learning from first customers, early hires, and key early challenges. 30% of the grade is based on each report.
Means Report (Individual)
Produce a report on your personal means. Reflect on what you know, who you are, and whom you know and how it connects to your ideas for entrepreneurship. Create at least 3 opportunities for potential new enterprises that are based on these means. For each opportunity identify the additional means that might be needed for you to succeed in that opportunity. 30% of the grade is based on this report.
Participation
Participation isbased on attendance; level of preparation evidenced by active involvement; quality of involvement; and relative contribution to the classroom learning process. In particular, I will be impressed if you take ownership of your own learning and show initiative in achieving high engagement both for yourself and your peers, both inside and outside the classroom. The attendance grade will be calculated from a random sample of approximately 10 class sessions. 10% of your grade is based on participation.
Grading Scale:
A93.4-100
A-90-93.3
B+86.7-89.9
B83.4-86.6
B-80-83.3
C70-79.9
FBelow 70
Course Materials:
Materials:
Cases will be available through HBS Press or on WISE. The required book for the class is Effectual Entrepreneurship by our own Stuart Readand Robert Wiltbank,Saras Sarasvathy,Nick Dew,andAnne-Valérie Ohlsson.
All logistics will be managed through WISE or in class and when necessary via email. Check the website regularly for class prep assignments, updates and real-time responses to issues raised in and out of class discussions.
Book:
- Effectual Entrepreneurship
Cases:
- HP Kitty Hawk (A) Harvard
- Zaplet Harvard
- Kevin MooneyBabson
- Cold Opportunity (A/B/C) Darden UVA
- StudyBlue Stanford
- Guidewire IMD
- Ruth Owades Harvard
- Felipe Vergara and LumniDarden UVA
Articles/Background Notes:
- What makes entrepreneurs entrepreneurial?Darden UVA
- Why the Lean Start-Up Changes EverythingHBR
- Beating the Odds When you Launch a New Venture HBR
- Legal Organization Formation Harvard
- Legal Protections of intellectual Property Harvard
- Scaling a Startup: People and Organizational Issues Harvard
Videos:
- What If Money Was No Object – Alan Watts
- Anything You Want – Derek Sivers
- Something Ventured
Optional/RecommendedReading:
- The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries
- Made to Stick: Why Some Ideas Survive and Others Die by Chip Heath, Dan Heath
- The Startup Owner's Manual: The Step-By-Step Guide for Building a Great Company by Steve Blank and Bob Dorf
- Blue Ocean Strategy by W. Chan Kim, Renée Mauborgne
- The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki
- The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business by Clayton M. Christensen
- Anything You Want by Derek Sivers
- Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld and Jason Mendelson
- The $100 Startupby Chris Guillebeau
Real Starts
Produce a report on an organization in one of these three categorize: Product, Service, and Non-Profit or Government; identifying what it took to launch them. This will involve interviewing the people that launched it. Examples of what needs to be covered include: beginning resources, opportunity creation as things developed, financial resources required, partnership arrangements, learning from first customers, early hires, and key early challenges. 30% of the grade is based on each report.
The purpose of the Real Starts papers is to get you out talking to real entrepreneurs, internalize how they think, and validate your learning. Over the years it has been my experience that the best papers come from those who strive to find the ‘most successful’ people they know; in a field they are interested in; and create a mentor/mentee atmosphere of trust where a candid discussion can be had.
A good interview requires asking the right questions in the proper way and digging deeper (the five how/why rule applies here). As an example, if an entrepreneur says they raised $500,000 and you move on without follow-up questions you are missing the point. Dig deeper and have good follow up questions: how did they gained enough traction to raise those funds;did they initially get turned down; what changed that allowed them to raise money; did they try to get a loan first; did they have a business plan; how many times did they give their pitch; what were the terms for that raise; etc. You want to learn enough about their experiences that you could replicate them. Developing a static list of questions without improvisational follow up questions will result in a less than ideal paper and lower grade.
- Format: Put [your name] and the [company name] in the title.
- Companies not recommendedthat would require pre-approval: Professional Services: Law, Financial Management, Insurance, Real Estate, Family Members, Friends, etc.
- 5x5 rule: Companies need be in business for at least 5 years and have at least 5 employees. Exceptions require pre-approval.
- Please keep the papers to a maximum of 5 single spaced pages. Interview formats might need more space. Please take the extra time, rewrite and be concise:
“I didn't have time to write a short letter, so I wrote a long one instead.”
– Mark Twain.
I’m looking for the shorter, more concise, executive version, you would provide to your boss or CEO.
- Some specifics that might be helpful:
- Starting experiences, resources, why them
- Scope/size – revenues, employees, profitability
- Sales – how did they generate early sales traction
- What did they learn and how did they change
- Marketing efforts
- Structure – partnership/c-corp, etc.
- Partnership issues
- Expansion plans and financing – how did they grow
- Employee issues
- Did they have a b-plan why/why not
- AR/AP issues
- If the business was sold try to get transaction details
- If they raised money how much and terms
- Work life balance
- How did they manage inventory
- Were they effectual, why/why not
- Grammar and spelling errors will reduce your grade. Please pay attention to detail. If there are too many errors your paper will be handed back and you will receive a zero grade.
- In the past I have allowed re-writes and this has continued to deteriorate the quality and quantity of the papers I receive. You will not be able to re-write or re-interview an entrepreneur.You get one opportunity per paper/presentation to make your best impression and provide your best work product.
- If the paper and the entrepreneur’s story are engaging I may ask you to reach back out to them to see if they would be interested in joining us for class and sharing their story.
Schedule for the Semester:
“The green reed which bends in the wind is stronger than the mighty oak which breaks in a storm.” – Confucius
“The cake is a lie.” - Portal
NOTE: This is a loose schedule and WILLCHANGE, you need to attend class for the on the fly adjustments. For some of you this will be a challenge but something you must overcome - business, and certainly entrepreneurship, never conform to a set schedule. This built in flexibility has two principal roles, first, to allow for guest lecturers to join the class on their schedules, and second, to allow for class directed topics.
Jan 14 - Tues
Think Ideas
Exercise: Your Company Exercise (no prep)
Think Reality vs. Myth
Read: EE Chapter 1 & 2 (pg 1 - 18)
Presentation: The Big Picture
Video: What If Money Was No Object, Alan Watts
Jan 16 – Thurs
Think Reality vs. Myth
Read: EE Chapter 3 - 5 (pg 20-36)
Discussion: Money and Prediction
Jan 21 - Tues
Think Product
Case: HP Kitty Hawk (A) (HBS 606088)
Jan 23 - Thurs
Think Effectuation
Discussion: How entrepreneurs think
Jan 28 - Tues
Think Product
Case: Zaplet (HBS 601165)
Jan 30 - Thurs
Think Different
Read: What makes entrepreneurs entrepreneurial? (HBS UV1356)
Feb 4 - Tues
Think Ideas
Discussion: Venture Ideas
Feb 6 - Thurs
Think Opportunity
Case: Kevin Mooney (on WISE)
Feb 11 - Tues
Think Risk
Read: EE Chapter 6 - 8 (pg 44-61)
Read: Beating the Odds When You Launch a New Venture (HBS R1005G)
Feb 13 - Thurs
Think Action
Case: Cold Opportunity A/B/C (HBS UV2032/3/4)
PAPER DUE BEGINNING OF CLASS FEB 13: Real Starts 1 of 2 (30% of your grade).
Feb 18 - Tues
Think Interaction
Case: StudyBlue (HBS E373)
Feb 20 - Thurs
Think Entrepreneur
Guest Entrepreneur TBD
Feb 25 - Tues
Think Organization
Case: Guidewire (A) (IMD-3-1833)
Feb 27 - Thurs
Think Deal
Discussion: Deal Structure and Terms (Term Sheet on WISE)
Mar 4 - Tues
Think Funding
Case: Ruth Owades (HBS 383051)
Mar 6 - Thurs
Make It Happen
Guest Entrepreneur
Mar 11 - Tues
Make a Better World
Case: Lumni (HBS UV0491)
-- MOVING FROM THINKING TO ACTION --
Mar 13 - Thurs
Think Action
Discussion: How Do I Start a Company
Mar 18 - Tues
Think Action
Read: Why the Lean Start-Up Changes Everything (HBR R1305C)
Discussion: Lean Startup Principles, The Lean Start-Up
PAPER DUE BEGINNING OF CLASS MAR18: Real Starts 2 of 2 (30% of your grade).
Mar 20 - Thurs
Think Action
Read: Legal Organization Formation (HBS 898245)
Read: Legal Protections of intellectual Property (HBS 898230)
Discussion: Structure and IP
Speaker: Guest Willamette IP Law Professor
Mar 24-30th
Spring Break – No Class
Apr 1 - Tues
Think Action
Discussion: Self-Funding vs. Raising Capital
Apr 3 - Thurs
Think Action
Discussion: Sales & Marketing
Apr 8 - Tues
Think Action
Discussion: Cash Flow and Growth
Apr 10 - Thurs
Think Action
Video: 3 Minute Pitches / PIE
Exercise: Presentation vs. The Written Word
Apr 15 - Tues
Think Action
Discussion: Milestones and Pitching
Apr 17 - Thurs
Make the Future
Discussion: Local incubators and accelerators in the area – Portland Incubator Experience (PIE), Nike TechStars, Upstart Labs, Portland Seed Fund, TechStars Seattle, SURF Incubator Seattle, TiE
Apr 22 - Tues
Make the Future
Video: Anything You Want – Derek Sivers
Apr 24 - Thurs
Make the Future
Discussion: Real world ethics – examples and discussion.
PAPER DUE BEGINNING OF CLASS APR 24th: Means Report (30% of your grade).
Apr 29 - Tues
Make the Future
Video: Something Ventured
May1 - Thurs
Make the Future
MANDARTOY: class evaluations and AMA - Open discussion, open topics.
1