JWI 575, New Business Ventures & Entrepreneurship, Week9 Summary, 9/1/13
This week was all about becoming a really good salesman. As an entrepreneur I now understand I must sell myself and my ideas all the time to the stakeholders. The core principles of selling are crystal clear to me from this week's learning.
I. What does it mean to be entrepreneurial?
The essence of entrepreneurship is this: coming up with original ideas, launching a new product, entering a new market, improving operations in parent company by encouraging people to think like entrepreneurs, seeing disruption before the upstarts do and staying a step ahead of a possibly disrupting competitor (JWI 575, W9L2).
II. Ideas spark a business
When Walt Disney lost all his money to his business associate and had to start from scratch, he came up with a new idea of an adorable character - Mortimer the mouse. His wife advised him to change the name to Mickey and correctly predicted that this name would sell. And Mickey Mouse became a huge success. "It all began with a mouse", said Walt Disney and this can be seen on display on a wall at the Disney museum in Florida's Disney World.
III. Sales sustain a business
Without a sale the fanciest ideas cannot lead to a sustainable business. With strong sales, profits can be driven and sustainable businesses can be created. This week was all about how tolead with sales. "It all begins with a sale", said TJ Watson Sr, founder of IBM.
IV. Know how to sell
The basic principles of selling include persistence, prospecting, knowing not only the features of the product but also what problem the customer is trying to solve and how the features of the product can help the customer, enthusiasm, positive attitude, refusing to hear no and working around objections, creating account maps, following-up and asking for the order (JWI 575, W9L1). A combination of direct and indirect sales channels such as direct sales force, websites, social media, phone, sales representatives, distributors, trade shows and viral marketing (Kaplan & Warren, 2010) should be used to reach customers and drive up sales.
V. Drive entrepreneurship in a big company
The job of a big company is to stay agile, keep innovating, finding niches to sell in and keep growing (Welch, JWI 975, Staying Agile video). Leaders of the company should create an entrepreneurial atmosphere within the company where employees feel encouraged to pursue good ideas and take chances (Welch, JWI 975, Entrepreneurship in a Big Company video).
Leaders must never forget that they get the behavior that is rewarded. Recognizing that growing a business from ground up in a growth market could be hundred times hareder than simply keeping an existing business running, leaders should place the best and brightest people for growth market assignments and give them the resources and freedom they need to get the job done. In this process, leaders should differentiate among the options they have for investment and be willing to say no to some and yes to others.
There could be a hundred other entrepreneurs working hard to destroy the business. Getting some of them to work for the company is one way to protect and grow the business.
Entrepreneurs should find an enthusiastic champion among the leaders of the organization, get the right resources in advance and create an independent culture.
VI. Spin off a new venture
A better balance of resources, encouragement and control may be achieved in an spin-off that is independent of the parent company. This is particularly true when a disruption can be identified that the existing company cannot properly seize upon. Ventures may evolve to a point where it's successful but no longer aligned with the parent company's focus. Making the venture thrive outside the corporate nest may be a better way forward.
Another outstanding week of learning at JWMI.
Dr DP
This week was all about becoming a really good salesman. As an entrepreneur I now understand I must sell myself and my ideas all the time to the stakeholders. The core principles of selling are crystal clear to me from this week's learning.
I. What does it mean to be entrepreneurial?
The essence of entrepreneurship is this: coming up with original ideas, launching a new product, entering a new market, improving operations in parent company by encouraging people to think like entrepreneurs, seeing disruption before the upstarts do and staying a step ahead of a possibly disrupting competitor (JWI 575, W9L2).
II. Ideas spark a business
When Walt Disney lost all his money to his business associate and had to start from scratch, he came up with a new idea of an adorable character - Mortimer the mouse. His wife advised him to change the name to Mickey and correctly predicted that this name would sell. And Mickey Mouse became a huge success. "It all began with a mouse", said Walt Disney and this can be seen on display on a wall at the Disney museum in Florida's Disney World.
III. Sales sustain a business
Without a sale the fanciest ideas cannot lead to a sustainable business. With strong sales, profits can be driven and sustainable businesses can be created. This week was all about how tolead with sales. "It all begins with a sale", said TJ Watson Sr, founder of IBM.
IV. Know how to sell
The basic principles of selling include persistence, prospecting, knowing not only the features of the product but also what problem the customer is trying to solve and how the features of the product can help the customer, enthusiasm, positive attitude, refusing to hear no and working around objections, creating account maps, following-up and asking for the order (JWI 575, W9L1). A combination of direct and indirect sales channels such as direct sales force, websites, social media, phone, sales representatives, distributors, trade shows and viral marketing (Kaplan & Warren, 2010) should be used to reach customers and drive up sales.
V. Drive entrepreneurship in a big company
The job of a big company is to stay agile, keep innovating, finding niches to sell in and keep growing (Welch, JWI 975, Staying Agile video). Leaders of the company should create an entrepreneurial atmosphere within the company where employees feel encouraged to pursue good ideas and take chances (Welch, JWI 975, Entrepreneurship in a Big Company video).
Leaders must never forget that they get the behavior that is rewarded. Recognizing that growing a business from ground up in a growth market could be hundred times hareder than simply keeping an existing business running, leaders should place the best and brightest people for growth market assignments and give them the resources and freedom they need to get the job done. In this process, leaders should differentiate among the options they have for investment and be willing to say no to some and yes to others.
There could be a hundred other entrepreneurs working hard to destroy the business. Getting some of them to work for the company is one way to protect and grow the business.
Entrepreneurs should find an enthusiastic champion among the leaders of the organization, get the right resources in advance and create an independent culture.
VI. Spin off a new venture
A better balance of resources, encouragement and control may be achieved in an spin-off that is independent of the parent company. This is particularly true when a disruption can be identified that the existing company cannot properly seize upon. Ventures may evolve to a point where it's successful but no longer aligned with the parent company's focus. Making the venture thrive outside the corporate nest may be a better way forward.
Another outstanding week of learning at JWMI.
Dr DP
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