Entrepreneurship in St. Louis

As I have mentioned before in previous blog posts, St. Louis is becoming a big entrepreneurship ecosystem. While it isn't as big as Silicon Valley, it offers plenty of opportunities and benefits for motivated individuals trying to start a small business. I would like to inform all my readers about some of the entrepreneurial options or programs they might be interested in.

For those of you at Saint Louis University I recommend visiting our center for entrepreneurship website. Regardless of you major, there are plenty of options and connections for you to use. One interesting program to look at is the Blue Diamonds Accelerator. While at SLU, you can receive funding for an existing business or idea you have. This program will provide training, mentoring, and support in order to help current students. There are also competitions where you can win money and meet important investors so be sure to check that page out.

The St. Louis Regional Chamber (2017) says, "the city has been the launching ground for many of America's biggest and best companies." Theres a reason so many startups, small businesses, and big companies exist in St. Louis. This is all due to the environment the city and its officials create. They understand the importance of bringing in new ideas and businesses. Thats why there is cheap office space for rent in areas where entrepreneurs can meet one another. If you are truly interested in starting a business in the city, look into these clusters of entrepreneurs and see if its right for you.

This is my last blog post. I'd like to thank all my readers for following my posts, and I hope you have learned something from me.

-Gavin Whitford

References

Entrepreneurship & Innovation. (n.d.). Retrieved April 14, 2017, from http://www.stlregionalchamber.com/work/innovation-entrepreneurship

Elevator Pitch

You're in an elevator going up to do an interview for an internship with a company you love. By chance, the CEO of the company is riding up the elevator with you. This is chance to impress him/her and make an important business connection. You've got maybe thirty to sixty seconds to impress the CEO with your credentials or maybe even your business plan. What do you say? What are the most important things to cover?

The Business Dictionary ("Elevator Pitch," n.d.) defines an elevator pitch as "a very concise presentation of an idea covering all of its critical aspects, and delivered within the duration of of an elevator ride." Practicing an elevator pitch will allow you to show the value of your idea without rambling on and on. By preparing an elevator pitch you not only have a script to use, but ensures you will only include the most important aspects of your business idea.

Saint Louis University offers the unique opportunity to participate in an elevator pitch competition. Five years ago they started their competition with real students and real pitches in the second tallest building in Missouri, the One Metropolitan Square skyscraper. To summarize you must submit a youtube video of you explaining your idea in 30 seconds. If you're selected to move on you will get the opportunity to ride up the skyscraper with wealthy judges. Even if you don't win the competition you can meet important business contacts. Check out the site for more information if you are interested.

References 

What is elevator pitch? definition and meaning. (n.d.). Retrieved April 07, 2017, from http://www.businessdictionary.com/definition/elevator-pitch.html

Writing a Business Plan

If you've started a business before or have even tried, then you probably have some experience writing a business plan. As I've mentioned in my blog before not all entrepreneurs come from money. Therefore, it is important for them to try and get investors and to successfully raise money you need a formal business plan. Even if you don't need funding it is important to create one. For those of you who aren't familiar with a business plan, it is a written document detailing the logistics of your business. It includes your business idea, competitors, target audience, future action plan, and much more. They can range from ten to twenty pages depending on the industry and if you're using it to get investors or just for yourself. If your idea is very technical it could be much longer than a standard business plan.

It is extremely important for entrepreneurs to know how to write a business plan. It is the key to successfully starting a business and getting funding. As a junior studying entrepreneurship at Saint Louis University, I have already had to draft two business plans. My individual business plan was several pages while my group one was over sixteen pages not including graphs, tables, or charts. From my experience I recommend anyone trying to write a business plan to research as much as possible. You don't want to mess up an interview with investors or start a half-assed business. The U.S Small Business Administration (2017) recommends that you project three to five years into the future for these documents. They also provide more detailed information about the parts in a business plan.

I'd like to finish my blog by including a snapshot of a business plan template. Generally there will be many parts in a business plan, but it will vary from industry to industry so make sure to do some additional research.

References 

How to Write a Business Plan | The U.S. Small Business Administration. (n.d.). Retrieved April 03, 2017, from https://www.sba.gov/starting-business/write-your-business-plan

Nature vs Nurture

Are entrepreneurs born or made? Does it have anything to do with genes or is it the environment you grow up in?

A popular belief is that entrepreneurs are born creative and destined to become successful. I don't think its quite that simple. It all goes back to the nature versus nurture argument, but I believe both genetics and your environment play a role in becoming an entrepreneur. Research by the University of Minnesota has highlighted the significance of genes on our personality and traits. They study identical twins who have been separated at birth. This allows them to observe how different environments and cultures account for differences in behavior. Their research has shown that identical twins who have been separated still have similar personalities. Although they have proved genetics play into someones characteristics, they have pointed out that environment does account for the variation in personalities.

While being creative is a must for entrepreneurship, many other characteristics can be learned or improved through experiences and school. I don't think entrepreneurs are some special breed of humans, they're just individuals passionate about their ideas and improving the world. If you are considering becoming an entrepreneur then take a look at 8 tips from Tamara Monosoff (2010):

1. Take a stand for yourself
2. Identify the right business for you
3. Make a business plan
4. Know your target audience
5. Build a support network
6. What kind of money/fundraising will you need
7. Know what value your product offers
8. Get the word out

In addition to my blog post, I would like to promote an interesting blog by a classmate of mine. Joe writes about music and his latest post covers the invention of headphones. It goes into detail about the components of headphones and their importance. If you're a big music fan or want to learn more about the industry visit his blog.

References 

Monosoff, T. (2010, July 19). So You Want to Be Your Own Boss... Retrieved April 03, 2017, from https://www.entrepreneur.com/article/207488

Lewis, T. (2014, August 11). Twins Separated at Birth Reveal Staggering Influence of Genetics. Retrieved April 03, 2017, from http://www.livescience.com/47288-twin-study-importance-of-genetics.html

Entrepreneurial Ecosystems

Silicon Valley. At some point I'm sure you've heard of this mysterious and comprehensive place. This region in San Francisco is home to thousands of startup companies in addition to the headquarters of thirty-nine businesses in the Fortune 1000. Originally named for the large amount of silicon chip manufacturers and microcomputers produced, Silicon Valley fosters entrepreneurial ideas and firms. It is an example of an entrepreneurial ecosystem. These areas bring together all sorts of entrepreneurs and new technology. They promote startups, incubators, and small businesses.While Silicon Valley is perhaps one of the biggest entrepreneurial systems found within the United States, I would like to discuss how St. Louis is becoming the next big entrepreneurship ecosystem.  

St. Louis is rapidly becoming the one of the top cities that fosters and promotes entrepreneurship and small business. As Karren Watkins (2014) said, "the city has cultivated some of the most eminent organizations in America including Nestle Purina, Anheuser-Busch, Enterprise Rent-A-Car. Venture capitalists are pouring millions of dollars into startup companies in St. Louis. This allows entrepreneurs to fund and expand their business.

If you were watching the Super Bowl, you might have seen the Anheuser-Busch "Born the Hard Way" commercial. It told the story of their founder coming to America from Germany and starting his brewery in St. Louis. He achieved the "American Dream" and started a successful business.
Although it isn't a recent development to St. Louis' economy, it shows that for some time now the city has welcomed young entrepreneurs.

Works Cited

Isenberg, D. (2014, November 01). What an Entrepreneurship Ecosystem Actually Is. Retrieved March 24, 2017, from https://hbr.org/2014/05/what-an-entrepreneurial-ecosystem-actually-is

Watkins, K. (2014, September 19). Entrepreneurial Ecosystems: what St. Louis can teach the nation . Retrieved March 24, 2017, from http://www.stltoday.com/news/opinion/entrepreneurial-ecosystems-what-st-louis-can-teach-the-nation/article_a6113c23-40c6-5db2-be0b-f9d37abf4e69.html

Social Entrepreneurhsip

In last weeks post I briefly covered two of the four different types of entrepreneurship. To simplify entrepreneurship there are four broad categories: small business, startup, large company, and social. Most people outside of this field are probably not familiar with either startups or social entrepreneurship. Since I already gave a brief background to startups, I think its important to now explain social entrepreneurship and provide a few modern examples of it.

According to Ben Casnocha (2011), "social entrepreneurs are innovators who focus on creating products and services that solve social needs and problems." Their objective is to make the world a better place instead of making large profit margins. These companies are normally nonprofit, for-profit, or a mix between the two. A common nonprofit people think of immediately is the Red Cross. The company has a unique relationship with our government and classifies as a nonprofit tax, exempt entity. However, I would like to talk about a modern social entrepreneur with big plans to help clean up the ocean.

At the young age of 22, Boylan Slat has ambitious plans to help clean up one of the five ocean garbage patches. There is approximately 5 trillion pieces (1.4 billion pounds per year) of trash in the ocean. This trash accumulates in five patches, the biggest one being between Hawaii and California. Boylan recognized the need for action to combat this social problem. He is the CEO and founder of The Ocean Cleanup, a company devoted to cleaning up the vastly polluted ocean. Boylan came up with new technology to hopefully clean up half of the Great Pacific Garbage Patch within 10 years. This ambitious goal could benefit marine life and help eliminate the destruction of coral reefs throughout the ocean. In a world where pollution is becoming more and more prevalent, it is reassuring to see individuals like Boylan Slat who make the difference.

To learn more about Boylan and The Ocean Cleanup visit these two sites:
 1) The Ocean Cleanup
 2) Boylan Slat

Works Cited

Meet the 22-year-old with a big idea for cleaning up the Great Pacific Garbage Patch. (2016, August 17). Retrieved March 03, 2017, from https://www.pri.org/stories/2016-08-17/meet-22-year-old-big-idea-cleaning-great-pacific-garbage-patch

The Four Types of Entrepreneurship. (2011, February 17). Retrieved March 03, 2017, from http://casnocha.com/2011/02/the-four-types-of-entrepreneurship.html

Startup Versus Small Business

Common sense might tell you that startups and small businesses are one and the same. Truth be told, there is a fundamental difference between these two types of entrepreneurial firms. The biggest difference between a startup and a small business is the end goal. Owners of a small business generally seek to make large profits and grow their company. The objective of a startup is typically growth and future revenue. Since startups aren't as well known, I will cover some basic principles and explain some goals that are key to a successful startup.

Two weeks ago I got the opportunity to listen to Drew Winship speak on startups. Drew has been the CEO of a startup for close to five years and he shared his successes, failures, and what he would change if he got to do it all over again. One of the more surprising statements he made was that you should aim for your startup to be worth fifty million dollars within five to seven years. That seems like a lot of money right? He explained the equation to get this figure.

$2.5 million (post-money) / 5% (chance of success) = $50 million 

The money raised should be divided by the chance of success to get the revenue wanted should you plan to sell your company in the near future. Drew also went into the logistics of how that money is split up and by the time you factor in taxes, wages, repaying investors, and time spent, you have a small portion of a seemingly large liquidation sale. Then you might also have to split whats left between owners. Although Drew said startups were ideal for him, small businesses might be preferred by others. According to Neil Thanedar (2012), "Establishing a successful small business can build credibility and be hugely valuable when launching a startup." So when deciding whether you want to create a startup or small business research the facts and see what aligns more with what you want.

Works Cited

Council, Y. E. (2015, February 17). Are You Building A Small Business - Or A Startup? Retrieved February 24, 2017, from https://www.forbes.com/sites/theyec/2012/08/15/are-you-building-a-small-business-or-a-startup/#4465be9a528a