Entrepreneurship

From Ioannis Kourouklides
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This page contains resources about Entrepreneurship, Intrapreneurship and new ventures (startups) regarding innovative products and emerging technologies.

Subfields and Concepts

General

  • Lean Methodology
  • Learn startup (vs. Corporation)
  • Agile Methodology
    • Scrum
    • Kanban
  • Social Entrepreneurship
  • (Startup) Incubator and Accelerator
  • User vs. Customer vs. Consumer
  • Network effect
  • Vanity Metrics

Overall strategy

  • Levels of Management:
    • Strategic Management
      • Corporate strategy (i.e. What?) - Senior Management
      • Business strategy (i.e. How?) - Middle Management
    • Operations management
  • Company Strategy
  • Mission and Vision Statements
  • Values
  • Niche
  • Microniche
  • Competitive advantage
    • Lower cost
    • Product differentiation
  • Minimum Viable Product (MVP)
  • Minimum Viable Feature (MVF)
  • Minimum Viable Assets (MVAs)
  • SWOT Analysis (i.e. Strengths, Weaknesses, Opportunities, Threats)
  • Types of Market Competitive Positioning
    • Market Leader
    • Market Challenger
    • Market Follower
    • Market Nicher

Business Models

  • Distribution Channel & Distribution Strategy
  • Customer Acquisition Models & Customer Acquisition Strategies
  • User Acquisition Models
    • Free (i.e. "you are the product")
    • Free trial
    • Freemium (i.e. Free and Premium)
  • Monetization Strategy
  • Revenue Streams
  • Types of Revenue:
    • Recurring
    • Transactional
    • Project
    • Service
  • Revenue Models
    • Advertising
    • Affiliate
    • Arbitrage
    • Commission
    • Data Sales (i.e. "you are the product")
    • Donation
    • Fee-for-service
    • Interest-based
    • Licensing
    • Markup
    • Pay-Per-User (PPU)
    • Rent/Lease
    • Subscription
    • Web/Direct Sales
  • Pricing Models & Pricing Strategies (if software product is charged)
    • (Perpetual) Licence - one-time fee
    • (On-premise) Subscription-based - recurring billing
    • Software as a Service (SaaS) - recurring billing
  • Pricing Plans & Billing
    • One-time fee / One-off fee
    • Recurring billing / Subscription billing
      • Fixed recurring billing / Regular recurring billing
      • Variable recurring billing / Irregular recurring billing (for usage-based services)
        • Volume pricing
        • Tiered pricing
        • Single-tier pricing
  • Payment Models
    • One-time payment
    • Recurring payment
  • Business Models
    • Business-to-Business (B2B)
    • Business-to-Consumer (B2C)
    • Consumer-to-Consumer (C2C) / Peer-to-peer (P2P)
    • Advertising (i.e. free users, e.g. certain social media)
    • B2B Subscription (i.e. B2B with paid users, e.g. B2B SaaS)
    • B2C Subscription (i.e. B2C with paid users, e.g. B2C SaaS)
    • Electronic Commerce / E-commerce (i.e. buyers only)
    • (Online) Marketplace (i.e. buyers and sellers)
    • Transactional (i.e. fee per transaction, e.g. fintech)
    • Usage-Based (i.e. pay per use, e.g. cloud service providers)
    • Hardware
    • Biotech
  • Business Model Canvas
  • Lean Canvas
  • Blitzscaling Business Model Innovation Canvas
  • Exit Strategies
    • Merger & Acquisition (M&A)
    • Initial Public Offering (IPO)
    • Management buyout
    • Family succession
    • Liquidation and close

Business Plan & Risks

  • Elevator Pitch
  • (Investor) Pitch Deck
  • Executive Summary
  • Marketing Strategy
  • Sales Strategy
  • Business Plan
  • Operational Plan
  • Financial Plan
  • Types of risk in a startup or a new venture:
    • Product risk
    • Market risk (Market timing, Market adoption, Market size, Product-Market fit)
    • Team and Execution risk (from founders' perspective)
    • People risk
    • Financial risk
    • Capitalization structure risk
    • Competitive risk
    • Business model risk
    • Technology risk (especially in CleanTech and Hardware)
    • Platform risk
    • Venture management risk
    • Legal and regulatory risk
    • Operational risk (e.g. operational scalability)
    • Systemic risks

Business Metrics

  • Financial Metrics
    • Revenue (from Sales, Rent, Capital Gains and ALL other sources)
      • Total Gross Revenue (i.e. from ALL revenue sources, before discounts, allowances, returns, etc)
      • Total Net Revenue (i.e. from ALL revenue sources, after discounts, allowances, returns, etc)
    • Cost of Goods Sold (CoGS) / Cost of Revenue
    • Gross Income (or Gross Income) = Revenue - CoGS
    • Gross Margin (or Gross Profit Margin) = Gross Income / Revenue
    • Operating Expenses / OpEx (not to be confused with Operating Costs)
    • Operating Costs = CoGS + Operating Expenses
    • Operating Income (or Operating Profit) = Revenue - Operating Costs
    • Operating Margin (or Operating Income Margin) = Operating Income / Revenue
    • Depreciation and Amortization (included in OpEx)
    • Net Interest Income (NII) = Interest Income - Interest Expense
    • Non-Operating Income or Expense = Other Income or Expense + NII
    • EBT (or Pretax Income) = Operating Income + Non-Operating Income
    • Nontaxable Income
    • Taxable Income = EBT - Nontaxable Income
    • Taxes (or Income Taxes) = Taxable Income * Tax Rate
    • Net Income (or Net Profit or Earnings) = EBT - Taxes
    • Net Margin (or Net Income Margin) = Net Income / Revenue
    • Total Expenses = Revenue - Net Income
    • Earnings Before Interest, and Taxes (EBIT) = EBT + Interest Expense
    • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) = EBIT + Depreciation and Amortization
    • EBITDA Margin = EBITDA / Revenue
    • Adjusted EBITDA
    • Adjusted EBITDA Margin
    • Net Operating Profit After Tax (NOPAT) = EBIT * (1 - Tax Rate)
    • Net Operating Profit Before Tax (NOPBT) = NOPAT + Taxes
    • Operating Cash Inflow = Revenue
    • Operating Cash Outflow = Operating Costs
    • Cash Flow from Operations (CFO)
      • Direct Method (non-GAAP) = Operating Cash Inflow – Operating Cash Outflow
      • Indirect Method (GAAP) = Net Income + Depreciation and Amortization + Taxes + Change in NWC
    • Cash Flow from Investing (CFI)
    • Cash Flow from Finance (CFF)
      • Net Cash Flow = CFO + CFI + CFF
    • Change in Net Working Capital (Change in NWC)
    • Capital Expenditure (CapEx)
    • Free Cash Flow (FCF) = Net Income + Depreciation and Amortization – Change in NWC – CapEx = CFO - CapEx
    • Monthly Burn Rate
      • Gross Burn Rate
      • Net Burn Rate
    • Cash Runway
    • Internal Rate of Return (IRR)
  • Fundamental Metrics (mostly for mature companies of the same type)
    • Market Capitalization / Market Cap
    • Total Enterprise Value (TEV) / Enterprise Value (EV)
    • Equity Value
    • Earnings Per Share (EPS)
    • Price-Earnings ratio (P/E or PER) = Share Price / EPS
      • Trailing PER (i.e. last four quarters in the past)
      • Forward PER / Leading PER (i.e. next four quarters in the future)
    • EV/EBITDA
    • Return on Equity (ROE)
    • Price-Sales ratio (P/S or PSR) = Market Capitalization / Revenue
    • Revenue per Employee
    • Weighted Average Cost of Capital (WACC)
    • Economic Value Added (EVA) = NOPAT - Invested Capital * WACC
  • Unit Economics and Engagement Metrics (which vary per Business Model)
    • Number of Visits
    • Number of Unique Visitors
    • Number of Customers
    • Number of Transactions
    • Number of Registered Users
    • Active Users
      • Daily Active Users (MAU)
      • Weekly Active Users (WAU)
      • Monthly Active Users (MAU)
    • DAU-to-MAU ratio
    • DAU-to-WAU ratio
    • WAU-to-MAU ratio
    • Monthly Run Rate / Monthly Recurring Revenue (MRR)
    • Annual Run Rate / Annual Recurring Revenue (ARR)
    • MRR per Customer
    • ARR per Customer
    • MRR per User
    • ARR per User
    • Net New MRR = New MRR + Expansion MRR - Churned MRR
    • Net New ARR = New ARR + Expansion ARR - Churned ARR
    • Gross New MRR = Net New MRR + Churned MRR = New MRR + Expansion MRR
    • Revenue Growth Rate
      • MoM
      • QoQ
      • YoY
    • Compounded Monthly Growth Rate (CMGR)
      • Revenue CMGR
    • Customer Lifetime Value (CLV or CLTV) / Lifetime Customer Value (LCV) / Lifetime Value (LTV)
    • Customer Acquisition Cost (CAC)
    • LTV-to-CAC ratio
    • CAC Payback Period (CPP)
    • Months to recover CAC
    • CAC ratio
    • Sales Efficiency
      • Gross Sales Efficiency
      • Net Sales Efficiency
    • Magic Number
    • Growth Efficiency Index (GEI)
    • Gross Margin per Lifespan (GML)
    • Average Customer Lifetime (ACL) / Average Customer Lifespan (ALT)
    • Conversion rate
    • Churn rate
      • Customer churn rate
      • Revenue churn rate
    • Retention rate
    • Activation rate
    • Average Order Value (AOV)
    • Gross Merchandise Value (GMV)
    • Average monthly recurring Revenue per Account (ARPA)
    • Cost per Visit (CPV)
    • Cost per Lead (CPL)
    • Annual Contract Value (ACV)
    • Average Contract Length (ACL)
    • Net Promoter Score (NPS)
    • Customer Renewal Rate (CRR)
    • Gross Dollar Renewal Rate (GDRR)
    • Net Revenue Retention (NRR) / Net Dollar Renewal Rate (NDRR)
    • Average Sales Cycle Length
    • First Response Time
    • Lead Velocity Rate
    • Viral Coefficient
    • Average Cost of Service (ACS)
    • Cost of Retention and Expansion (CORE)
    • Gross Margin contribution per customer Lifespan (GML)
    • Contribution Margin
    • Contribution Margin Ratio
    • Recurring Profits Margin (RPM)

Funding

  • Types of funding
    • 3F (Friends, Family and Fools)
    • Angel
    • Syndicates
    • Venture Capital (VC)
    • Rolling fund
    • Venture debt
    • Equity crowdfunding
    • Family offices
  • Types of investors (USA)
    • Accredited investor
    • Non-accredited investor
  • Types of investors (UK)
    • Restricted investor
    • Advised investor
    • Sophisticated investor
    • High Net Worth investor

Contracts and legal documents

  • (Pre-Incorporation) Founders Agreement
  • Stock Restriction Agreement / Restricted Stock Agreement
  • Articles of Association
  • Memorandum of Association / Memorandum
  • Employee Stock Purchase Plan (ESPP)
  • Stock Option Plan / Equity Incentive Plan
  • Term Sheet
  • Subscription Agreement / Share Purchase Agreements
  • Revenue Sharing Agreement / Profit Sharing Agreement

Online courses

Video Lectures

Lecture Notes

Books

  • Mochary, M. (2019). The Great CEO Within: The Tactical Guide to Company Building. Mochary Films.
  • Shelton, H. (2014). The Secrets to Writing a Successful Business Plan: A Pro Shares a Step-By-Step Guide to Creating a Plan That Gets Results. Summit Valley Press.
  • Thiel, P. A., & Masters, B. (2014). Zero to One: Notes on Startups, or How to Build the Future. Currency.
  • Aulet, B. (2013). Disciplined Entrepreneurship: 24 Steps to a Successful Startup. John Wiley & Sons.
  • Senor, D., & Singer, S. (2011). Start-up Nation: The Story of Israel's Economic Miracle. Twelve.
  • Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Currency.
  • Hazelgren, B., & Covello, J. (2006). The Complete Book of Business Plans: Simple Steps to Writing Powerful Business Plans. Sourcebooks.
  • Abrams, R. M. (2003). The Successful Business Plan: Secrets and Strategies. 4th Ed. The Planning Shop.

Software

See also

Other Resources

General

Overall strategy

Business Models

Business Plan & Risks

Business Metrics & Financial Plan

Angel, VC and other funding

Legal aspects

Document templates and paperwork