NFTE STARTERS:DAY 1

INTRODUCTION TO ENTREPRENEURSHIP

INTRODUCTION

PROGRAM OVERVIEW

ICE BREAKERS

LOGISTICS

LanternHQ

Google Drive, Dropbox

Headphones

CHICAGO’S TECH ENTREPRENEURSHIP ECOSYSTEM

PANEL – EW & AV

ENTREPRENEURSHIP & LEAN STARTUP

WHAT IS ENTREPRENEURSHIP?

The process of creating a new business

WHAT IS AN ENTREPRENEUR?

A person who organizes, manages, and assumes the risks of new business

CHARACTERISTICS OF AN ENTREPRENEUR

What personal traits do you think it takes to make it

as an entrepreneur?

WHAT DOES IT TAKE TO START A BUSINESS?Traits

•Something you have by nature• Courage• Creativity• Curiosity• Determination• Discipline• Honesty• Work Ethic

WHAT DOES IT TAKE TO START A BUSINESS?Skills

•Something you acquire over time with practice• Business skills• Communication skills• Computer skills• Math skills• Organizational skills• Problem-solving skills• Critical thinking skills

WHAT DOES IT TAKE TO START A BUSINESS?Resources

•An asset that can be drawn on to function more effectively• Money• Networks• Education• Mentors

Which of the following could be considered entrepreneurial

ventures?

Startups

Established Businesses

Risk

THE ENTREPRENEURIAL PROCESS

THE LEAN STARTUP

LEAN STARTUP

IMVU, Inc. (Instant Messaging Virtual Universe) is an online social entertainment website founded in 2000, in which members use 3D avatars to meet new people, chat, create, and play games.

• 50 million registered users

• 10 million unique visitors per month

• 3 million monthly active users

• 10 million virtual goods (world’s largest online catalog), almost all of which are created by its own members

THE LEAN STARTUP’S KEY PREMISE

Validated Learning: Demonstrating that an entrepreneur/team of entrepreneurs is making concrete progress toward the end goal of creating a sustainable business

Ideas

Build

Product

Measure

Data

Learn

BUILD-MEASURE-LEARN (BML) FEEDBACK LOOP

BUILD-MEASURE-LEARN (BML) FEEDBACK LOOP

1. Ideas: Start with an idea that you believe could be turned into a business

• Opportunity recognition (more on this tomorrow)

2. Build: Create a prototype called a “Minimum Viable Product” to test your assumptions about value and growth hypothesis

Ideas

Build

Product

Measure

Data

Learn

BUILD-MEASURE-LEARN (BML) FEEDBACK LOOP

3. (Minimum Viable) Product: The simplest version of your product that enables you to test your value hypothesis

• Value Hypothesis: An assumption that can be tested to determine if a product or service creates value for customers

4. Measure: Collecting market research to test your value hypothesis.

Ideas

Build

Product

Measure

Data

Learn

BUILD-MEASURE-LEARN (BML) FEEDBACK LOOP

5. Data: What you’ve found through market research

• Quantitative: Can be represented numerically

• Qualitative: Narrative, non-numerical feedback

6. Learn: Analyzing the data you’ve collected to determine what you’ve learned and what your next steps are.

Ideas

Build

Product

Measure

Data

Learn

PRE-SURVEY

HTTPS://WWW.SURVEYGIZMO.COM/S3/1687890/SUMMER-PRE-

EMA

LUNCH

SOURCES OF OPPORTUNITY

SOURCES OF OPPORTUNITY

Problems

•Many well-known companies were started because an entrepreneur wanted to solve a problem.

SOURCES OF OPPORTUNITY

Changes:

•Our world is continually changing. Change often produces needs or wants that no one is currently meeting.

SOURCES OF OPPORTUNITY

New Discoveries:

•The creation of totally new products and services can happen through research, new technology, or even by accident!

SOURCES OF OPPORTUNITY

Existing Products or Services:

•You can get ideas for opportunities from businesses that already exist by looking for ways to improve a product significantly.

SOURCES OF OPPORTUNITY

Unique Knowledge

•Entrepreneurs sometimes turn one-of-a-kind experiences or uncommon knowledge into a product or service that benefits others.

LET’S TRY…

1. Count off 1-6

2. Read the following story about the invention of a product/business for your group

3. Determine what opportunity source is exemplified

4. Be ready to share

PENICILLIN

While picking up one particular dish, Fleming noticed something strange about it. While he had been away, a mold had grown on the dish. That in itself was not strange. However, this particular mold seemed to have killed the Staphylococcus aureus that had been growing in the dish. Fleming realized that this mold had potential. This little mold eventually became known as Penicillin, the foundation of all antibiotic medicine.

On a September morning in 1928, Alexander Fleming left for vacation. Before leaving, Fleming neatly organized his Petri dishes, but didn’t notice the open window in his lab.A week later, back from vacation, Fleming noticed the open window and began sorting through the long unattended stacks to determine which ones could be salvaged. Many of the dishes had been contaminated due to the open window. Fleming placed each of these dishes in an ever growing trash pile.

New

Discove

ry

BILL GATES

At the end of the ban, the four students offered to find bugs in CCC's software in exchange for computer time. The arrangement with CCC continued until 1970, when the company went out of business. The following year, Information Sciences, Inc. hired the four Lakeside students to write a payroll program in Cobol, providing them computer time and royalties. After his administrators became aware of his programming abilities, Gates wrote the school's computer program to schedule students in classes. He modified the code so that he was placed in classes with "a disproportionate number of interesting girls." He later stated that "it was hard to tear myself away from a machine at which I could so unambiguously demonstrate success."

At 13 he enrolled in the Lakeside School, an exclusive preparatory school. When he was in the eighth grade, the Mothers Club at the school used proceeds from Lakeside School's rummage sale to buy a Teletype Model 33 ASR terminal and a block of computer time on a General Electric (GE) computer for the school's students.  Gates took an interest in programming the GE system in BASIC, and was excused from math classes to pursue his interest. He wrote his first computer program on this machine: an implementation of tic-tac-toe that allowed users to play games against the computer. After the Mothers Club donation was exhausted, he and other students sought time on other systems. One of these systems was a PDP-10 belonging to Computer Center Corporation (CCC), which soon banned four Lakeside students—including Gates—for the summer after it caught them exploiting bugs in the operating system to obtain free computer time. Unique

Knowledge

WHITE OUTIn 1951 Bette Nesmith was divorced and approaching a new secretarial job; she had learned to type on manual machines and now faced electric typewriters. A light touch caused letters to appear on the paper, and the mistakes from a carbon ribbon didn't erase. Bette found herself making frequent mistakes, and was always having to start over entire documents! As a former artist, Bette put some white waterbased paint in a small nail polish bottle, painted over her mistakes, and voila!  Liquid Paper.

Problem

NETFLIXReed Hastings, co-founder of Netflix: "I got the idea for Netflix after my company was acquired," said Hastings. "I had a big late fee for 'Apollo 13.' It was six weeks late and I owed the video store $40. I had misplaced the cassette. It was all my fault. I didn’t want to tell my wife about it. And I said to myself, 'I’m going to compromise the integrity of my marriage over a late fee?‘

Later, on my way to the gym, I realized they had a much better business model. You could pay $30 or $40 a month and work out as little or as much as you wanted."

Existin

g

Product/

Servic

e

SKINNY JEANSSkinny jeans, with tapered legs and narrow-peg ankles, seemed like a flash in the pan when they appeared in stores a few years ago. They seemed more suited to women. Today, though, sales of men's skinny jeans are going strong, and mass brands Gap and Levi's are getting in on the action.

Explanations abound for why men would want to wear jeans that look so uncomfortable and impractical. Some fashion observers say skinny jeans' tight hold on certain men stems in part from the wearers' desire to show off their gym-sculpted bodies. Then, too, denim brands, retailers and men's fashion magazines have relentlessly promoted skinny jeans. And pop stars like Justin Timberlake and Kanye West, by wearing skinny jeans, have given something resembling permission for style-conscious young men to wear them.

Rock & Republic says sales of its men's skinny denim over the past several months rose 26% over last year's figures.

Changes

MATCH GAME

Use the following website:

goo.gl/g4Gatoto match the web app to the source of opportunity

INTRO TO APP CHALLENGE

OPPORTUNITY RECOGNITIONANDPROBLEM SOLVING

PROBLEM SOLVING

How will you

empty the tub?

XYour grade depends on how fast you can empty this bathtub:

You have

a spoon

a tea cup

a bucket

WHAT OPPORTUNITIES EXIST?

PROBLEM RECOGNITION

On a sheet of paper, list 5 problems you see:

• Your daily life• Your school• Your neighborhood• Anything!

PROBLEM RECOGNITIONIdentify the root causes of each problem

Cleaning Service

Interior Decorator Air

Freshener/Candles

Scrap Book Classes

Desk Organizers

Babysitter

Photographer

Laundry Service

MIND MAPPING

A diagram used to visually outline information

Mirrors the way the creative brain processes, records, remembers, retrieves, and re-combines input/stimuli.

Allows us to speak the same language as the right brain.

MIND MAP GUIDELINES1. Start in the center with an image of the topic, using at

least 3 colors.

2. Use images, symbols, codes, and dimensions throughout your mind map.

3. Select key words and print using upper or lower case letters.

4. Each word/image is best alone and sitting on its own line.

5. Lines should be connected, starting from the center. The central lines are thicker, and get thinner as they move out from the center.

6. Use multiple colors throughout the mind map, for visual stimulation and also to encode or group.

7. Develop your own personal style of mind mapping.

8. Use emphasis and show associations in your mind map.

MIND MAP GUIDELINES

MIND MAP

PROBLEMS/SOLUTIONS

MIND MAP

THE JITTERBUG!

MIND MAPPING

Mind map solutions to the 3 biggest problems you found

Focus on solutions that involve mobile or web apps

BRAINWALKING

1. Choose your favorite solution from your mind maps

2. Write it on a blank sheet of paper

1. Build on/evolve the idea written on paper, or create an entirely new (related) solution

2. Write it on the paper below the previous idea

3. You will have 1 minute to think of an record a new idea on each paper

BRAINWALKING

Collaboration

Get your original idea back

Read through the best idea(s) on your paper

•Any changes/additions/ subtractions to your idea?

Write your NEW best idea on the bottom of your paper. Circle it

DIAGNOSTIC ASSESSMENT

HTTPS://WWW.SURVEYGIZMO.COM/S3/1686236/SUMMER-DIAGNOSTIC-ASSESSMENT

ELEVATOR PITCHES

WHAT IS AN ELEVATOR PITCH?

A brief description of your company/idea

•Concise, carefully planned, well-practiced

Why is it called an elevator pitch?

•30 seconds

ELEVATOR PITCH

An elevator pitch must contain:•A Hook

• Statement, question, or statistic to gain interest

•Passion• Show excitement and

confidence in your business

ELEVATOR PITCH IN 3 PARTS

1. What’s the problem?

2. What’s your solution?

3. How does your product/service work?

TOYGAROO

Shark Tank Video

Fill out wksht

NEXT STEPS

For Tomorrow:

• Determine your BEST business idea• Create a 30 second pitch to

describe your idea• Problem• Solution• Features