Entrep Final Reviewer
Entrep Final Reviewer
VENTURES COPYRIGHTS
❑Evaluate the patent plan strategically. ❑ Author’s own work and thus the product of
his or her skill or judgement.
SECURING PATENT : THE APPLICATION
❑ Formal registration of a copyright is with the
1. Specification the text of a patent and may copyright office of the library of congress.
include any accompanying illustrations
❑ Fair use” doctrine of copyrights—
❑ An introduction explaining why the reproduction of a copyrighted work for
invention will be useful purposes of criticism, comment, news
❑ A description of prior art considered similar reporting, teaching, scholarship, or research
to invention INTELLECTUAL PROPERTY PROTECTION
❑Summary of the essence of the TRADEMARKS
technology/invention its differences from prior A trademark is a distinctive name, mark,
art and requisite features symbol, or motto identified with a company’s
product(s) and registered at the Patent and
❑ Description of the invention
Trademark Office.
❑ Examples and/or experimental results
AVOIDING TRADEMARK PITFALLS
CLAIMS
Trademark registration is very
Claims a series of short paragraphs, expensive, but infringement is even more
each of which identifies a particular feature or expensive. Five rules to avoid pitfalls in selecting
combination of features that is protected by the a trademark:
patent.
❑ Never choose without trademark search. legal entity apart from the individuals who own
it
❑ Trust lawyer’s judgment.
THE LIMITED LIABILITY PARTNERSHIP (LLP) –
❑ Seek a coined or fanciful mark
is a relatively new form of partnership
❑ Select a logotype or name that is highly that allows professionals the tax benefits of a
suggestive of the product. partnership while avoiding personal liability for
the mal. practice of other partners.
❑ Avoid abbreviations and acronyms.
PRINCIPAL CHARACTERISTICS OF LIMITED
THE ENTREPRENEURIAL PROCESS
PARTNERSHIPS
Parody or Trademark Infringement
1. A limited partnership or LLIP may be created
Parody is sometimes used as a defense against
only in accordance with a statute
trademark infringement.
2. A limited peach type or LLLP has two types of
FORMS OF INTELLECTUAL PROPERTY
partners: general portrait and limited partners.
Patent- A grant from the government that gives
3.All partners, limited and general, share the
an inventor exclusive rights to an invention.
profits of the business.
Copyright- An intangible property right granted
4.Each limited partner has as liability limited to
to authors and originators of a literary work.
his capital contribution to the business. Each
Trademarks-Any distinctive word, name, general partner of limited partnership has
symbol, or device image or appearance). unlimited liability for the obligations of the
business.
Trade Secrets- Any informative including
formulas, patterns, programs devices, 5. Each general partner has a right to manage
techniques, and processes). the business, and he or she is an agent of the
limited partnership or LLLP.
Three primary legal forms of organization are
the sole proprietorship, the partnership, and 6. General partners, as agents, are fiduciaries of
the corporation. the business. Limited partners are not
fiduciaries
1. Sole Proprietorships-
7. A partner's rights in a limited partnership or
A sole proprietorship is a business that is LLLP are not freely transferable. A transferee of
owned and operated by one person. a general or limited partnership interest in not a
2. PARTNERSHIPS- partner, but is entitled only to the profits. e
A partnership, as defined by the Revised transferring partner's share of capital and
Uniform Partnership Act (RUPA), is an 8. The death or other withdrawal of a partner
association of two or more persons who act as does not dissolve a limited partnership or LLLP,
co-owners of a business for profit. unless there is no surviving general partner.
Break event analysis will supplies this if expected sales do not exceed the lower
information. break-even point, then the product should be
unprofitable. If the expected sales is in between
BREAK-EVEN POINT COMPUTATION –
of the two breakeven point is need further
Break-even analysis is a technique that investigation of the questionable cost behavior
is commonly used to assess expected product need.
profitability.
Break-Even Analysis Ratios are useful for:
-It helps to determine how many units
Vertical Analysis Anticipating conditions
must be sold to break even particular selling
and as a starting point for planning actions.
prices.
Showing relationships among financial
Contribution Margin Approach – statement (FS) accounts.
PITFALLS TO AVOID IN THE VENTURE OF 7. Key Resources- The most important assets
PLANNING PROCESS required to make the business model work and
create value for the customer.
PITFALL 1: No Realistic Goal
8. Key Patterns- The network of supplier and
PITFALL 2: Failure to Anticipate Roadblocks partners that optimize operations and reduce
PITFALL 3: No Commitment or Dedication risks to make the business model work.
PITFALL 4: Lack of Demonstrated Experience 9. Cost Structure- The most significant costs
(Business or Technical) incurred to operate the business model.
Characteristics of cost structures include:
PITFALL 5: No Market Niche (Segment)
1.Fixed Costs
BUSINESS MODEL CANVAS: INITIATING THE
VENTURE FORMATION PROCESS 2.Variable Costs
Value Proposition- The product and the service Covers the project, marketing, research and
that create value for specific customer segment. development, manufacturing, management,
critical risks, financing, and milestones or a
1. Customer segment- The different groups of timetable.
people or entities that the venture aims to
reach and serve. BENEFITS OF A BUSINESS PLAN
3. Read the latest balance sheet ( to determine • Can the management team build a business?
liquidity, net worth, and debt/equity) • How much money do you need?
4. Determine the quality of entrepreneurs in the • How does your investor get a cash return?
venture (sometimes the most important step).
ELEMENTS OF BUSINESS PLAN
5. Establish the unique feature in the venture
(find out what is different). Executive Summary
6. Read over the entire plan lightly (this is when Not more than three pages. This is the
the entire package is paged through for a casual most crucial part of your plan because you must
look at graphs, charts, exhibits, and other plan captures the reader’s interest. What, how, why,
components). where, and so on must be summarized.
PUTTING THE PACKAGE TOGETHER Complete this part before you have finished the
business plan.
1.Appearance
Business Description
2. Length
The name of your business. A
3. The cover and Title page background of the industry with history of your
4. The executive summary company (if any) should be covered here.
The financial segment of a business plan Rehearse the presentation to get the feed of it’s
must demonstrate the potential viability of the length.
undertaking.
Be familiar with any equipment to be used in
Three basic financial must be prepared in this the presentation-use your own laptop.
part of the plan; the pro forma balance, income
The day before, practice the complete
statement, and the cash flow statement.
presentation using all visual aids and
Critical-risk Segment equipment.
Discuss potential risk before investors Suggestion for Presentation Focus on the “pain”
point them out-e.g., Price cutting by for which your venture will be the solution.
competitors. Any potentially unfavorable
Demonstration the reachable market.
industry-wide trends. Design or manufacturing
costs.in excess of estimates. Explain the business model. Tout management
team.
Harvest Strategy Segment Milestone Schedule
Segment Develop Explain your metrics Motivate the audience.
Why you and why now?
a timetable or chart to demonstrate
when each phase of the venture is to be WHAT TO EXPECT
completed. This shows the relationship of
events and provides a deadline Entrepreneurs should realize that the audience
accomplishment. reviewing their business plan and listening to
their pitch is usually cynical and sometimes
Appendix and/or Bibliography Segment antagonistic.
The final segment is not mandatory, but No matter how good you think your venture
it allows for additional documentation that is plan is, an investor is not going to look at it and
not appropriate in the main parts of the plan. say “this is the greatest business plan I’ve ever
Diagrams, Blueprints, financial data, vitae of seen!”.
management team members , and any
Entrepreneurs must be prepared to handle 4. Evaluate the performance of the strategy.
questions from the evaluators and to learn from
5. Take follow-up action through continuous
their criticism, they should never feel defeated
feedback.
but rather should make a commitment to
improving the business plan for future review. THE LACK OF STRATEGIC PLANNING
STRATEGIC ENTREPRENEURIAL GROWTH Five reasons for the lack of strategic planning
STRATEGIC PLANNING AND EMERGING FIRMS 2. Lack of expertise /skills
3. Time Scarcity
An entrepreneur’s planning will need
4. Lack of knowledge
to shift from an informal to a formal systematic
5. Lack of trust and Openness
style for other reasons.
6. Perception of high cos
• The degree of uncertainty with which the
THE VALUE OF STRATEGIC PLANNING
venture is attempting to become established
and to grow. Does strategic planning pay off?
• The strength of the competition Research shows it does. A number of
studies have focused on the impact of planning
• The amount and type of experience the
on entrepreneurial firms. These studies support
entrepreneur has may be a factor in deciding
the contention that strategic planning is of
the extent of formal planning.
value to a venture.
THE NATURE OF STRATEGIC PLANNING
All of the research indicates that emerging firms
is the formulation of long-range plans that engage in strategic planning are more
for the effective management of environmental effective than those that do not.
opportunities and threats in light of a venture’s
Most important, the studies emphasize the
strengths and weaknesses.
significance of the planning process, rather than
is used to match the conditions of an ever- merely the plans, as a key to successful
changing market and competitive structure with performance.
a firm’s continuously evolving resources,
FATAL VISIONS IN STRATEGIC PLANNING
capabilities, and core competencies.
Researcher Michael E. Porter has noted Five
FIVE BASICS STEPS MUST BE FOLLOWED IN
fatal mistakes entrepreneurs continually fall
STRATEGIC PLANNING
prey to in their attempt to implement a
1. Examine the internal and external strategy.
environments of the venture (SWOT).
Fatal Vision- Misunderstanding industry
2. Formulate the venture’s long-range and attractiveness
short-range strategies. (Mission, objectives,
Fatal Vission- No real competitive advantage
strategies, policies).
Fatal Vision- Pursuing an unattainable
3. Implement the strategic plan (programs,
competitive position
budgets, procedures).
Fatal Vision - Compromising strategy for This stages are result of both market
growth condition and the entrepreneur efforts.
3. Expansion into a new markets to assure the • Moral Failure - This form of failure of a
continent use of resources. violation of internal trust.