Pages: 33

In this chapter, the authors depict entrepreneurial action as consisting of a number of stages that, together, constitute a lifecycle. Specifically, the chapter identifies and describes the stages in that lifecycle: business opportunities, ideation and testing, business model generation, resource acquisition, management, and execution. Startups need to search for repeatable and scalable business models. In doing so, entrepreneurs can map their business hypotheses through the Business Model Canvas, which comprises nine building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, cost structures. According to John Mullins, there are three crucial elements to assess in an entrepreneurial journey: markets, industries, and the key people who make up the team. Once entrepreneurs analyze the market, the next step is to assess industry. In his conferences and presentations, Blank frequently argues that “no Business Plan survives first contact with a customer”. According to his thesis a startup needs to search for a business model.

Pages: 45

This chapter describes the business model innovation process, which is a fundamental part of the broader entrepreneurial lifecycle. It goes through the concepts of business models, disruptive technologies, disruptive innovation and the different ways through which innovation of business models occur. The chapter presents a detailed explanation of each of these concepts and methods, and offer a set of examples and complementary resources such as links to articles, videos, and podcasts. There are a number of definitions of business models in the literature. Three authors, in particular, can be identified as key contributors to the conceptual development of the theory: Clayton Christensen, Alexander Osterwalder, and David Teece. One of the main enablers of business model innovation is technology. Business model innovation can happen in three general ways: through adding novel activities, by linking activities in novel ways, and through changing one or more of the parties that perform the activities.

Pages: 29

This chapter presents different methods and tools that support innovation across entrepreneurial lifecycle. In addition, a number of theories of innovation are described. The chapter shows how management can foster an effective culture of innovation that incorporates effective methods and tools. The first method is Design Thinking. This is an approach extensively used and promoted by many, including by IDEO, one of the most celebrated design companies in the world. Open innovation is a term coined by Henry Chesbrough. As he describes it in his book, “open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external path to market, as the firms look to advance their technology”. Lean Startup methodology is based on the lean manufacturing philosophy of operations management which advocates the elimination of waste in manufacturing and service processes.

Pages: 18

This chapter presents the skills required to manage the entrepreneurial lifecycle. Specifically, it addresses: adaptability, finding and managing people, managing cash effectively, focuses on customers, selling, creating and managing alliances, creativity and innovation, humility, optimism, and inspiration. Evidence from successful startups shows that finding and managing good staff is a recurrent issue in achieving a thriving business. As Steve Blank records, great startups are teams and the key characteristics of the team are based on the identification of the critical success factors for each specific industry, i.e., those factors that, done right, almost guarantee superior performance. It is often said that “cash is king” or “the lifeblood of any business enterprise is cashflow.” Cash creates options. A startup needs cash to pay employees, buy inventory, pay for services, promote and market the business, attract investment, pay loans, repair and replace tools and equipment, and so forth. A successful startup is a customer-driven organization.

Pages: 14

The statistics tell a tough story. When analyzing the ratio of success, we see that 33% of all new businesses fail within the first six months, 50% fail within their first two years of operation, and 75% fail within the first three years. Hence, some entrepreneurs talk about the component of “luck” as a fundamental, inescapable aspect of entrepreneurship. Entrepreneurs at the center of the journey with four processes: business model innovation, innovation methods and techniques, managing the entrepreneurial journey, and entrepreneurial skills. Once the hypotheses are validated, the entrepreneur needs to execute the different processes required in order to build a scalable and repeatable business. Evidence demonstrates that millions of entrepreneurs come up with great ideas, but most of them fail at the execution part of the strategy. Business model generation is a fundamental stage of the entrepreneurial lifecycle.