Dr David Bozward

Category: Skills Development

  • Do you know your Exit Strategy?

    Do you know your Exit Strategy?

    You will need to ensure you are motivated to exit the business and that means understand the path for your exit strategy. In every sense you must learn from the exit from your business and the experience should motivate you to build a new enterprise which is more amazing and motivated that this. The five common Exit Strategies are:

    Initial Public Offering

    The stock market offers you the opportunity to increase the capital available to the business, the money invested and also the rewards available to you. The motivation for being independent will have to reduce as shareholders and accountability move into play.

    Acquisition

    When you have created a truly unique, thriving and attractive business, it will be becoming an appealing proposition for other businesses. When they offer you the large sum of money for your business, what motivates you to say ‘Yes’? What will you do everyday when you no longer have your business to run? The opportunities are then truly amazing and you can become a member of ‘Serial Entrepreneurs’ club.

    Liquidation

    Walking along any footpath can be uneasy and the same is true about business. The vast majority of entrepreneurs have a company liquidation in there bag, an experience they will never forget, an event which created some the best lessons they have ever learnt. No expects you to walk straight away, so why do you expect to be able to manage a business from day one without making mistakes. This should be expected, however it is in the learning about business, enterprise and yourself which you can create a truly amazing and vibrant business next time around.

    Sell to another Entrepreneur

    One of my favour saying is that “People buy from people who are like them”. This is the case from buying your newspaper to buying a company. Entrepreneurs look for opportunities and therefore within your network you will know people who want to buy and run your company better and pay you for the chance.

    Shareholder

    This option which many entrepreneurs follow is to become a shareholder which then provides revenue for the rest of their lives (e.g. Bill Gates). In some cases the shareholder provides revenue for many generations to come, such as the Guinness family. This exit requires you to create a good team around you who are motivated to continue to move the business forward.

    So before you start out on your venture, think about your exit strategy and  what you will need the business to look like for you to achieve your goal.

     

  • The five types of student entrepreneur

    The five types of student entrepreneur

    After working with over 20,000 students in the last ten years, I have started to stereotype those coming through into five simple student entrepreneur categories. There is no real theory and a great amount of research here, but I just wanted to share my thoughts and observations on these student entrepreneurs.

    Wanta-preneur

    This group of people want to mega rich, famous and of course a owner of a super big business. They just want it all! Yet hard work, planning and dedication to entrepreneurship is not at the core of their motivations. They sometimes do start businesses, normally with co-founders who do all the work, while they talk about their business, the people they know and the mega plans they have.

    Pros : Great talker who other may believe
    Cons : Lacks hard work and dedication

    Business-Anarchistic-preneur

    Staying the same is not an option, so these people think of distributive technology, business models and taking all the biggest businesses, traditional methods and societies. They know that they will succeed as its only there ability to change the world that will save it.

    Pros : Out of the box thinking
    Cons : Others don’t take them seriously, just too radical

    Social Entrepreneur

    This group not only want to start a business but one that helps others. They have great amounts of passion, dedication and drive to see this business idea into a fully developed business. These people understand the need to develop others, work in teams and share the value of their business with as many people as possible.

    Pros : A Team player
    Cons : Takes too long as brings too many people with them

    Geek-preneur

    The richest people are Geeks, so why not start the the next Microsoft, Apple or Facebook. These people can make technology work for them and create small dynamic businesses which engage users throughout the world in their dream creation.

    Pros : Easy to start boot strapped business
    Cons : Lacks people skills to engage others

    Just-do-It-preneur

    This group just get on with it, never thinking for one moment they can’t. What they lack in skills, knowledge and network, they balance with the shear determination and brut force. They are the bull in the china shop style of entrepreneurship.

    Pros : Self belief and determination to make it a success
    Cons : Lacks style and skills which makes others believe

    As with all people and businesses it about having the team, a set of skills and maybe every business should have a mix of these.

     

    So which type of student entrepreneur are you?

  • The process of developing a business plan

    The process of developing a business plan

    When I look at the process of creating a new venture, I often see people forget some of the basic elements in the process of developing a business plan.

    The first three steps are:

    1. Opportunity discovery,
    2. Business modelling
    3. Business planning

     

    Opportunity Discovery

    The best idea is the one which provides the best business opportunity. Therefore we are not looking for any idea but an idea which provides the best opportunity.

    Therefore the process of ideation captures the current industry trends and the competitor in and around them. The technology innovation currently applied to this market and the outlook we see in terms of costs and market adoption trends.

    The creative problem solving can not sit in isolation and needs to be surrounded by the context for it to be applied to create an outstanding  value proposition later on.

    Business Modelling

    For most people this is filling out the Business Model Canvas, a tools which provides a powerful view of the business model. But again this is completed in isolation within a full understanding the ecosystem, actors and their behaviours.

    The process of modelling is about understanding the relationship between the key actors within the ecosystem, it doesn’t matter if its designing a new road bridge, a tv or a new products. This dynamic relationship is so important in understanding the processes and metrics to be put in place to plan the business.

    Business Planning

    The core aspects of Business Planning are risk analysis, scenario planning and financial planning. Once these are done the rest, include product design, marketing strategy and operations are secondary.

    All investors want to know you can manage this risk and act accordingly.

    The process of developing a business plan are about understanding the dynamic relationship and how to mitigate the risks they pose to your business. Its not an exercise in writing or filling out the right amount of words in the right sections.

     

    The process of developing a business plan is simple yet so many people get it wrong. Just remember to understand the dynamic nature of business and that your business startup will be connected with these and therefore needs to adjust to maintain a successful course through the early years.

  • 6 ways to find a co-founder

    6 ways to find a co-founder

    Co-founders are normally people involved in the initial launch of startup companies. Anyone can be a co-founder, but frequently co-founders are entrepreneurs, engineers, hackers, funders, web developers, web designers and others involved in the ground level of a new  venture.   The first step in finding your co-founder is to map yours needs.  Make sure you are perfectly clear on what skillsets/resources will be the most important for the success of the startup, and best fill a hole in your own resume and desired management team.

      1. Friends from University – It worked for the guys at Facebook and Google, so just get out and meet other students.
      2. Former co-workers – If you’ve worked together as employees, you might be able to work together as co-founders. You have the history and know each others skill sets.
      3. People you meet over coffee – We see hot beds of startups co-locating themselves in coffee shops, just talk to the guy next to you.
      4. Former co-founders in another venture – There’s no better person to launch with than someone that has started a company before.
      5. Accelerators – Related to some of the other co-working suggestions, simply applying to a startup accelerator can lead to finding a co-founder.
      6. At meet-ups – Tech Meetups are great places to find co-founders and they are easy to find and also go to.
  • 7 obstacles experienced by entrepreneurs

    7 obstacles experienced by entrepreneurs

    As an entrepreneur we have lots of do, but sometimes we just do it wrong, we let obstacles get in our way. So what are the typical obstacles we entrepreneurs have to deal with:

    1. Perfectionism – For entrepreneurs, practice doesn’t make perfect; action does. You simply cannot wait until you are 100 percent ready before you take action. Think MVP.
    2. Procrastination –  Sometimes its easier to delay the decision, the action or even dealing with the problem, so each day “Eat the Frog” and take action of the real issues within your business.
    3. Fear – Entrepreneurs’ resolve is tested from the very first step of starting a business. In fact, one entrepreneur compared starting a business to jumping off a cliff and assembling your parachute on the way down.
    4. Worry – As an entrepreneur, worry comes with the territory. In fact, over a third of entrepreneurs told Gallup they worried a lot about yesterday. While worry is a quotidian experience, it is not productive. You have to make peace with the things that concern you, and not let them stop you from taking action and pursuing your dreams.
    5. Financing – Experienced entrepreneurs don’t have it easy when it comes to funding a new business, but they do have a few advantages over newcomers. They might have a pool of capital from a business they previously sold or a steady stream of revenue they can use to fund a new business’s cash flow.
    6. Team building – This is especially hard if you’ve never run or managed a team before, but even if you have management experience, picking the right team for a startup is stressful and difficult. It’s not enough to find candidates who fill certain roles — you also need to consider their cost to the business, their culture fit and how they’ll work as part of your overall team. Such considerations are exceptionally hard when you’re under the pressure of filling those positions as soon as possible.
    7. Decision-making – Believe it or not, this is probably the most stressful challenge on this list. New entrepreneurs are forced to make hundreds of decisions a day, from big, company-impacting decisions, to tiny, hour-affecting ones. Decision fatigue is a real phenomenon, and most new entrepreneurs will experience it if they aren’t prepared for the new level of stress.
  • Venture Creation – BA (Hons) Entrepreneurship Programme

    Venture Creation – BA (Hons) Entrepreneurship Programme

    In the last year I have had the amazing  opportunity to design a venture creation BA (Hons) Entrepreneurship Programme which is oriented towards students who wish to combine study towards an honours degree with the opportunity to start their own business in a supported environment with guidance from specialist lecturers, practising entrepreneurs and mentors. Over the years I have seen many programmes and wanted to create something for Entrepreneurs, the student and for practitioners.

    This is a practice-oriented degree, which focuses on the development of the students’ entrepreneurial effectiveness. This is achieved by embracing the concept of ‘learning by doing’ which ensures students are acquiring real knowledge and practical expertise to support their business start-up and business growth aspirations. There is a focus on real business experiences including master classes, enterprise events and interactions with local and global entrepreneurs. This philosophy is extended within the assessment primarily for (rather than ‘of’) learning Entrepreneurship (QAA (2012) Enterprise and Entrepreneurship Education: Guidance for UK Higher Education Providers, pp9).

    Similarly, although there is an inherent emphasis on learning within the learner’s own start-up venture, the Entrepreneurship skills acquired will be transferable to other business environments and learning opportunities.

    This BA (Hons) Entrepreneurship Programme aligns with the nation and international government agenda (The Impact and Effectiveness of Entrepreneurship Policy, NESTA 2013) and seeks to increase the number of entrepreneurs in the economy.

    A range of teaching pedagogies are adopted to ensure the curriculum enhances the learning of all students both in the startup and in group learning environments. In addition to lectures, seminars, videos, podcasts, presentations and visiting entrepreneurs, students will participate in action learning sets and interactive activities to apply learning from businesses experiences in their startup. These approaches are intended to take into account the principles of inclusivity: the types of learner, their startup business, their prior experience and expectations and how they learn and will be supported to learn effectively.

    Given the focus on developing a continued learning environment in which students develop an entrepreneurial mindset, there is an emphasis within the BA (Hons) Entrepreneurship Programme on tutoring and mentoring to support individual requirements, and also to reflect (at a meta-cognitive level) on their learning process. The programme is supported by more than 10 Entrepreneurs in Residence, regional business support agencies and local businesses.

  • Student Led Incubators

    Student Led Incubators

    There is always a real need to get student involved in Enterprise and Entrepreneurship within the university. They have a real need for enterprise skills and developing it into an Entrepreneurial career or a full blown Entrepreneur.

    So on a recent visit to the the Tianjin Urban Construction Management Vocational Technology College, we had the opportunity to visit their incubator.

    This college is looking at developing Energy Entrepreneurship, developing new businesses which address saving energy or using it in a more effective way, especially within China.

    IMG_7685

    So the real surprise was the cafe within the business incubator was run by Students for Students and business owners. We had the chance to meet the three owners of the business and provide some advice and support. The development of this student led cafe provides a real insight into both the management of the college and also the students within it.

    The management have placed trust in the students to start, run and make a success of the cafe. This has resulted in:

    1, Trusting students is such an important part of Entrepreneurship and we sometime forget to place this on students.

    2, The students have taken a opportunity to run the cafe, something which every student on campus will have an opinion about. I know many students wouldn’t do this as their peers would look down on them or have something to say. The risks and rewards associated with this is a great lesson, but the greatest one is that these students have the largest network on campus.

    3, Having a go, should always provide winners, as experience of entrepreneurship will ensure students leave with more skills that we educators could ever teach them.

    IMG_7688

    The cafe was the centre of the business incubator and so made it student led, the cafe was the heart of the space, just as it should be.

    So when we arrange, we were saw a great space being used by other students and it was the centre of campus live. So good luck.

     

  • Setting Objectives when Starting up a Business

    Setting Objectives when Starting up a Business

    When Setting Objectives when Starting up a Business you should always use SMART objectives -the most well known method for setting objectives. S.M.A.R.T refers to the acronym that describes the key characteristics of meaningful objectives, which are:

    Specific

    • WHAT am I going to do?
    • WHY is this important for me to do?
    • WHO is going to do what? Who else need to be involved?
    • WHEN do I want this to be completed?
    • HOW am I going to do this?

    Measureable

    • How do I know when I have done it?
    • Can these measurements be obtained?
    • What are the numbers, quantity, comparisons?

    Achievable

    • Can we get it done in the proposed timeframe?
    • Do I understand the limitations and constraints?
    • Can we do this with the resources we have?
    • Has anyone else done this successfully?
    • Is this possible?

    Realistic

    • Do you have the resources available to achieve this objective?
    • Do I need to revisit priorities in my life to make this happen?
    • Is it possible to achieve this objective?

    Time-Bound

    • When will this objective be accomplished?
    • Is there a stated deadline? (a defined time line)

    Setting Goals Summary

    Remember what gets measured gets done, so write your goals down, share them constantly with those who can help, are part of the goal and your team. Keep refining your goals to ensure achievable. If necessary, split goals down into achievable tasks.

  • A true Entrepreneur never fails, just learns

    A true Entrepreneur never fails, just learns

    In the recent months, I have been thinking about the journey we take as entrepreneurs. This is not always a logical one and it has many twists and turns but as a lecturer I know it’s important to present a structured approach with a limited set of options. But as a realist, I also know the path to true enlightenment may be through the pit of delusion.

    The message that failure is a good thing is one which many people are now talking about, yet I find our education system still thinks in a binary way, you either pass or fail and this can only be done at defined points, normally set by your age.

    Our Examination system teaches us from a young age that there is only one right answer and many wrong ones. This then provides society with a view of you, typically a grade from A* to U. We sit and judge you from afar, if too many get high marks then the exams were easy, if too little get high mark then the youth of today are spending too much time on their Xbox. The hard fact for many young people is that the grade is final and they be able to change it, even if they get better at that subject. You never get the opportunity to learn from your mistakes or gain a higher grade.

    Yet Entrepreneurship is about the path your take and the reactions to the decisions and not the decisions themselves.

    Everyone is expected to take the wrong turn at some point and the important thing is how you get back on track. How do you learn from the situation? How do you react to your mistake? How do you reflect on the situation and opportunities surrounding you at this point?

    Let me explain this in terms of driving from London to Paris. If you made one wrong turn at any point, then as long as you recognized this fact and acted on this information to rectify it, you would still arrive in Paris. It may or not take longer or extra time. yet our education system would have failed you and asked you to never drive this route again.

    I always explain starting a successful business as having to make one hundred right decisions. Out of how many I do know know. Over what time I do now t know. I don’t know what feedback loop will be in place. When will I know that I have done it?

    We all agree that these decisions will need to be made and that some of them will be shown to be wrong. (Either the right decision at the wrong moment or the wrong decision at the right moment) This is not a fail, just another opportunity to learn, rethink the plan and evaluate your surroundings.

    Our secondary education system needs to develop an opportunity to reflect on the learning and allow the learner to build this into their learning plan moving forward.

    Your path is your own and only on your reflection can you mark yourself.

  • Startup Incubator Best practice

    Startup Incubator Best practice

    What do people need from an incubator when starting a business ?

    Over the last six years I have visited, be a participant of and worked in an startup Incubator. So I have had the opportunity to see it from all sides. The one thing I learnt very early on was it’s not about the physical space. Those with the most colourful, innovative decor or largest wall hanging tended to be the worst. Those that I liked focused on a few important things, so lets consider them in the right order:

    Business Networking

    The opportunity to network and be associated with a network is the most important factor. Entrepreneurs that do well network, it provides co-founders, investors, customers and the most importantly great staff. So having this provided on a plate to you, when starting out, is the golden egg which your business should be incubated in.

    Mentoring

    Most people who run incubators have never started or run a business, so having a mentor is very important in creating perspective, inspiration and raw guidance. The mentor and mentee should be trained to understand the expectations placed on the each other. The selection of the mentor should be based on the stage of the business, business sector and the location of the entrepreneur. Having more than one mentor should also be encouraged.

    Flexible Space

    It’s important that formal meeting space, serendipitous meetings and water cooler moments are all facilitated within the incubator. The majority of business people today expect to meet in a cafe or open space but a closed space is also needed for formal meetings. The hot desking should have great wifi.

    Friendly Support

    Having people who can support you when things don’t go as expected is important. The ability to ask someone who can sign post you to additional support, grants, loans and people is so important when starting out, pivoting and trying to bootstrap your business. When selecting an incubator, do the staff seam helpful and knowledgeable.

    Skills Development Events

    In the process of starting a business most people learn new skills naturally, but don’t know it and need reminded of the distance covered. Some people need organised session whereby they develop skills and knowledge which will be needed in the future, next month/year. The majority of incubators will have a speaker series to support this.

    Funding Support

    Most people don’t need that much, if you are outside London, the costs of living is less. If the office is free then it’s just some living expenses and then some Stuff to move the business forward. However access to finance at various stages is important to scale businesses and the staff should be able to support you in this endeavour.

    Free or Discounted Stuff

    Most businesses need a tool bag of stuff which can help them more forward their business. This may include websites, accounting software, payment solutions, discounted travel, …etc. Its also helpful if the incubator can recommend software solutions for you, saving you the research space and money.

     

    The important factors in starting a business are sometimes softer that you think. Its not always Money, Staff and 1000 sq ft office space. It may just be a cup of tea with someone who has done it before and has a story to tell.