A
ability, defined, 30
activation, 35–37
Activation Agents, 163–166, 175
age, 48–49
agreements, need for partnership, 120–122
Al-Zubeidi, M., 72
Amazon, 22
ambiguity, as an uncertainty, 16
angel investors, 105
Apple Computer, 166
Arthur Anderson LLP, 110
ASAP Software, 220
Ash, R., 74
assets, protecting, 133
asset valuation method, 226–227
B
bankruptcy, 70
Bankruptcy Abuse Prevention and Consumer Protection Act (2005), 70
Baumol, W., 20
Best Buy, 220
Bezos, J., 22
Birch, D., 71
Blanchard, K., 174
Blank, A., 165
blue-sky innovation, 160–161
bonuses, 121
bootstrapping, benefits of, 76
Branson, R., 22
Brin, S., 22
Brumbarger, R., 22
budget, innovation, 175
Buffett, W., 47
business owners, differences between entrepreneurs and, 12–13
business plan
elements of, 90–91
role of, 83–85
buyers
attracting, 219–221
knowing who they are, 231
buyouts, 122
C
calculating inventor, 32
CarMax, 62–63
CDW, 26, 223, 228–229, 237–239
Center for Research on Entrepreneurial History, 32
CEO title, 138
change
driving, 166–173
exiting/selling because of, 201–202
Circuit City, 62–63
Compaq, 26
comparable worth, 225
Cone, J., 179–180
copying competition, 136–137
corporate structure, startup success and, 74
creative destruction, 15
customer knowledge, 149–152
customer relationship management (CRM), 184
data collecting, 56
debt
costs and benefits of, 100–103
taking on, 75
desire
defined, 29–30
role of, 96–97
DeSoto, S., 126
devil’s advocate, 167
discounted cash flow, 227
documentation, selling business and reviewing, 216–217
Drucker, P., 15
due diligence, 237–239
E
EBITDA (earnings before interest, taxes, depreciation, and amortization), 122, 226, 227
education, startup success and, 72–73
Educational Resources, 25–27, 69, 101
EduCause, 69
effort, defined, 30
E-Formula, 28
activation, 35–37
I.D.E.A. (Innovation, Desire, Effort, and Ability), 28–31
opportunities, determining, 32–35
situation, assessing, 31–32
employees
See also partnerships
announcing sale of company to, 239–240
-driven innovation, 173–179
recruiting and hiring, 124–125, 134
training, 175
enterprise resource planning (ERP), 184
entrepreneur(s)
becoming an, 25–37
characteristics of, 11
differences between business owners and, 12–13
power of, 23–24
reactions to, 19
replicative versus revolutionary, 20–23
thinking like an, 17–19
types of, 32–33
entrepreneurial spirit, 15
benefits of, 12
courses and research on, 12–14
importance of, 13
“Entrepreneurship on Campus: Why the Real Mission Is Culture Change” (Cone), 179–180
ethics, 140–141
Evangelpreneurs, 22–23
See also selling business
implementing, 207–210
positioning for transition, 212–215
reasons for, 200–207
F
failures
pitfalls, avoiding, 72–81
statistics, 70–72
family/friends
exiting/selling because of, 202
as partners, 116
fears, facing, 40–42
financial, 60–61
industry/market, 61–63
Federal Express, 161
Fiedler, F., 143
Figurski, D., 101
financial issues/checklist, 59
assets, protecting, 133
background of partners, need to know, 116–117
business plan for obtaining funding, 84–85
debt, costs and benefits of, 100–103
debt, taking on, 75
due diligence, 237–239
feasibility analysis, 60–61
frugal, being, 108–111
funding, obtaining, 103–106
money management plan, creating, 106–108
performance measures, 227
reports, 226
scaling, 188–190
startup success and,75–78
statements, 133
worth, establishing your company’s, 225–230
five forces model, 62
flooring, 191
Franklin, B., 198
frugal, being, 108–111
funding, obtaining, 103–106
G
GAP (good, average, poor) analysis, 92–93
General Motors, 172
global competitiveness, 13–14
Global Leadership Summit, 23
goals
setting, 91–92
startup, 80
Health, 34
Grand Canyon University, 227
Greatest Book Ever Written: The Old Testament Story, the (Oursler), 81
green entrepreneurs, 21–22
Groupon, 16
H
Harvard Business School, 12
health, 49–50
Hewlett-Packard, 26
hiring employees, 124–125, 134
Hoffer, E., 29
Home Depot, 165
Humphrey, A., 89
Hybels, B., 22–23
I
I.D.E.A. (Innovation, Desire, Effort, and Ability)
activation, 35–37
defined, 29–30
opportunities, determining, 32–35
situation, assessing, 31–32
starting and unlocking, 28–31
idea phase, 28–31
idea selection process, 178
industry/market feasibility analysis, 61–63
innovation
See also entrepreneurism
blue-sky, 160–161
defined, 29
driving change, 166–173
employee-driven, 173–179
enemy of, 167
garden, 173–179
Idea and Activation Agents, 163–166
integrative/transformative, 160, 161
promoting ongoing, 179–181
recognizing, 162
roadblocks, 171–173
scramble, 168
innovator, 32
instincts, 17–18
integrative/transformative innovation, 160, 161
intellectual property (IP), 228
internal rate of return (IRR), 227
Internet entrepreneur, 22
interpreneurship, 174
intrinsic value analysis, 228–230
J
Jago, A., 143
Jobs, S., 159
Journey Education Marketing (JEM), 208
K
Kaplan, J., 78
Kauffman Index of Entrepreneurial Activity, 48
Keith, A., 144
Kelley, T., 167
Kennicott, J., 8
Kennicott, R., 8
key performance indicators (KPIs), 92, 177
knowledge, customer and product, 149–152
Krazny, M., 223
L
legal issues
need to have verbal agreements also in writing, 120–122
research/checklist, 56–57
Litton Industries, 74
London, S., 75
M
Mace, M., 12
Malraux, A., 39
management issues, 131–138, 143–146
management skills, startup success and, 74–78
Marcus, B., 165
Mason, A., 16
McGucken, E., 11
Microsoft, 26–27
Health Vault, 34
mission statement, 88–89
Mitchell, J. R., 76
money management plan, creating, 106–108
Morris Air, 20
Motorola, 174
multipliers, 227
N
Neeleman, D., 20
negotiating and closing deal, 223–243
Negotiations Worksheet, 228, 230–237
net present value (NPV), 227
New Thought Principle, 95
O
Office Depot, 220
office space, 125
One Minute Entrepreneur, The (Blanchard), 174
Open, 26
operational research/checklist, 59–60
opportunities, 15
determining, 32–35
in risk, 50–51
organization builder, 32
Oursler, F., 81
over-optimistic promoter, 32
P
Page, L., 22
Parsa, H. G., 71
partners
financial background of, need to know, 116–117
friends/family as, 116
other you, 116
overcommitted, 117
agreements, need for, 120–122
avoiding bad candidates, 115–118
creating successful, 118–122
growing with, 123–126
investments, 121
preparing for early departures, 122
team development, 126–128
PEP Stations, 33
performance indicators, 92
Peterson, W., 29
pharmacies, 172
Pickens, T. B., 50–51
Pink, D. H., 51–52
planning
See also research
business plan, role of, 83–85, 90–91
components of, 87–88
exit strategy, 93
GAP analysis, 92–93
goals, setting, 91–92
long-term, 94–96
mission statement, 88–89
performance indicators, 92
preparation for, 86–87
scaling, 184–185
startup success and, 73–74
SWOT analysis, 89
time and sacrifices needed for, 85
plans, personal business, 80
Porter, M., 62
position, 47–48
possessions, 46–47
president, title, 138
Prevor, B., 204
priorities, startup success and, 78–81
private equity firms, funding from, 104–105
product knowledge, 149–152
product/service feasibility analysis, 61, 134
professionals, selling business and use of, 218–219
profit, managing, 135–136
Program Management Institute (PMI), 50
promoting, 147–157
R
Ragont, N., 101
replicative entrepreneurs, 20–23
See also feasibility analysis
financial, 59
legal, 56–57
operational, 59–60
resources, 57–58
resources, 57–58
return on investment (ROI), 227
revolutionary entrepreneurs, 20–23
rewards, 179
Richardson, J. M., 201
risks
box, deconstructing, 45–50
breaking versus taking, 42–44
exiting/selling because of, 202
facing fears, 40–42
handling, 51–54
opportunities in, 50–51
scaling and, 193–195
as an uncertainty, 16
roadblocks, innovation, 171–173
Roosevelt, E., 42
Rubino, F., 119
rules/procedures, of engagement, 175
running phase
ethics, 140–141
leadership/management issues, 131–138, 143–146
sales/selling, 147–157
S
Sales Maxim
adding it all up, 152–154
confidence = knowledge, 149
knowledge = customer and product, 149–152
sales = confidence, 148
sales presentation, 219
scaling
defined, 183
exiting/selling and, 204
finances, 188–190
planning, 184–185
risk and, 193–195
skills, 191–193
strategy adjustments for, 185–188
technology and, 185
buyers, attracting, 219–221
buyers, knowing who they are, 231
documentation, reviewing, 216–217
due diligence, 237–239
employees, announcing sale to, 239–240
negotiating and closing deal, 223–243
positioning for transition, 212–215
preparing for, 215–219
professionals, use of, 218–219
reasons for, 200–207
reasons for, explaining, 213
releasing information about, 214–215
serial entrepreneurs, 22
Shore, S., 204
Significant Education, LLC, 227
situation, assessing, 31–32
Six Sigma, 174
Skrzypchak, C., 124–125
Slichter, S. H., 13
Small Business Administration, 70
small businesses, failure of, 70–71
Smith, F., 161
social entrepreneurs, 21
Solow, R., 21
Southwest Airlines, 161
Starbucks, 161
startup
components of, 65–66
part of I.D.E.A, 28–31
pitfalls, avoiding, 72–81
positioning for success, 69–82
statistics, 70–72
Steve & Barry’s, 204
stock options, 121–122
support, from family and friends, 79
SWOT (strengths, weaknesses, opportunities, threats) analysis, 89, 177, 217
Systemax, 220
T
technology, scaling and, 185
10 Faces of Innovation, The (Kelley), 167
time accounts, 14
titles, 138
training, 175
transition, positioning for, 212–215
Transonic Combustion, 33
true uncertainty, 16
U
uncertainty
classification of, 16
true, 16
V
VentureSource, 104
Virgin Group, 22
Vroom, V., 143
W
Wall Street traders example, 41
wealth, problem with, 47
Whole New Mind: Why Right-Brainers Will Rule the Future, A (Pink), 51
WIKISPEED, 33
Willow Creek Association, 23
worth, establishing your company’s, 225–230