Investors are usually likely to pay for more a fancy prototype as it demonstrates that the product has more potential to be more valuable to customers. A more fancy prototype can strongly affect the assessment of many of the boxes in the Venture Evaluation Matrix (Da Rin and Hellmann, 2017). The solution the firm provides …
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The Lean Start-Up movement, as discussed in the HBR article by Blank (2013), is a useful framework for the early stages of starting an information technology company (like software), but is of little use to anyone who has already started and wants to grow a company, let alone someone who is starting a company outside …
Continue reading "Lean Start-up vs Drucker for established companies"
The lean start-up method by Blank is predicated on the assumption that plan A rarely leads to success and most business plans are built on a set of unverified hypothesises and limited information. For a practicing entrepreneur this an attractive methodology, as it saves time making an elaborate business plan and puts the emphasis on …
Continue reading "Comparing Gans, Stern, Wu vs Blank vs Da Rin and Hellmann"
Entrepreneur’s main job is not to flawlessly execute the business idea so lovingly articulated in his or her business plan but embark on a learning journey that usually leads to another destination. Plan A based on leaps of faith which must be identified. These hypotheses need to be tested. Quantitatively address 5 areas: (Sometimes one …
Continue reading "Notes on A Business Plan? Or a Journey to Plan B? – Mullins, Komisar – 2010"
Cambrian explosion – multiplication of life forms on earth 540M years ago Are we experiencing an entrepreneurial explosion? Fuelled by cheap and ubiquitous building blocks for digital products and services. Hundreds of start-up schools (accelerators) with highly interconnected ecosystem with co-working places. However, similar to dot com bubble, perhaps too many start-ups doing the same …
Continue reading "Notes on Tech Start-ups: A Cambrian Moment – The Economist – 2014"
75% of start-ups fail. Lean start-up favours experimentation over elaborate planning, customer feedback over intuition and iterative design over tradition big design up front development. Failing fast and continually learning. The Fallacy of the perfect business plan A business plan assumes that it is possible to figure out most of the unknowns of a business …
Continue reading "Notes on Why the Lean Start-Up Changes Everything? By S. Blank — 2013"
I disagree the statement due to the following reasons. Firstly, having a technical understanding of the underlying technology of the solution that entrepreneurs provide is only a very small part of entrepreneurship. ‘Entrepreneurship is the pursuit of opportunity beyond the resources controlled’ in a quote from Prof Howard Stevenson (Harvard Business School). The process of …
Perseverance is a defining characteristic of entrepreneurship. Drucker (2002) mentions that entrepreneurship leadership requires total commitment, determination, perseverance, and opportunity focus. This is because entrepreneurship is defined as the pursuit of opportunity beyond the resources currently controlled (Stevenson, 1983), which is an inherently risky process. Just as a six on a dice does not always …
Entrepreneurship can impact job creation, healthy competition, economic growth, promotion of an inclusive society and innovation (Block, 2016). This is due to the many outcomes from innovation including new products and services and new business models leading to societal progress. The argument is made that entrepreneurship increases economic growth which resultantly results in a higher …
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Entrepreneurs usually desire freedom, independence and wealth. Entrepreneurship is an approach to management which is defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson, 1983). There are six dimensions where entrepreneurs exhibit specific behavioural characteristics which are contrary to their counterparts in traditional corporations. As discussed by Drucker (2002), innovation begins …
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