Societal Entrepreneurship Lectures
Lecture 1 3 September ’19
Intrepreneur: working in company, boss values you thinking entrepreneurial
- Understand the entrepreneurial processes
Societal entrepreneurship: contribute to societal unmet needs
Problems biotech
1. Concept phase -> commercial operation
a. Valley of death: 6 months’ financial issue
i. Flaws in terms of money & deliverables (How does value go up)
2. Finance becomes exponentially large
a. Companies sold or bankrupted before late phases → discuss exit, if you know
exit, then plan is different so discuss earlier bc depends bp
i. IPO
ii. Trade sale
iii. Sit on dividend (profit)
The business plan should cover
▪ Entrepreneur: captain on the ship (CEO no legal protection, fired without
compensation unless contract – clause)
▪ Idea, mission & strategy
▪ External factors & liability
o External factors: more than market, where do we move to as society
(environmental issue stayed)
o Liability: aansprakelijkheid
▪ IP, patents & trade secrets
o IP: has to be described in great detail
o Patents
o Trade secrets
▪ Marketing plan: not sales, how convince the world that good product, confident
product
▪ Production plan: how to deliver product?
▪ Personnel plan over time
▪ Management
▪ Financial plan
o Balance sheet
o PNL
o Cash flow: linked with figure to content plan (link with income or with
investment, if investment is in, recruit personnel at once, or later, so show in
cash flow)
▪ Free cash flow over 5 years
▪ Quarters first three years
▪ Half years after 3 years
, ▪ Dip is most important part: how much needed to survive negative cash
issue
Simple BP
▪ Make plan for 1, 3, 5, 10 years from now → 10 y is exit
▪ Who are customers
▪ Competitors
▪ What are my products
o PMC: product market combination
o Turnover
o COG: cost of goods (personnel, infrastructure)
o Price
o Value: value proposition (little to do with price)
▪ Why would customer buy at my place → quality, superior product
o Most difficult part
o Why could customer return to my place → stability, service, quality, validity
of x%
▪ What do I do when I reach my goals
o Define: what does it mean
o People HR plan
o Money: grants & subsidies → free money
Tactics = operational = midterm goals
Strategy = long term goals
Incentive: why do it?
▪ For the money? Important!! Keep in mind the exit
▪ Show true incentives
Large markets are incremental innovators
▪ Incremental innovators: Innovations that have little steps forward, but interesting for
established players
▪ To keep the big market, recognize the market
▪ Radical breakthroughs:
o Sell it as competitive advantage, take money & forget
o Not sell it, that’s when you start your own start up
▪ Too radical, then start other startup
▪ Incremental (findable from start by industry) or radical breakthrough, effects exit and
finances
Behavioural investment
1. European & cyclical: if market goes down, market stop investing
2. American & anti-cyclical: if market goes down, start investing
a. Has to come up again, invest in downslope, cash in up slow
→ how do sentiments change? Global balance out, dip does not be visible because they both
even out
Margin
▪ EBITDA: before tax etc → should be between 25-30%
, o Earning before, interest, tax, depreciation and ….
▪ In growth phase & stable phase
IPR: intellectual property as layers of protection
1. Registered trademark: ben & jerrys
2. Brand: unilever
3. Copyright
4. Registration (dossier) → not always, depending on the market
5. Patent
6. Commercial intangibles
7. Marketing intangibles
8. Trade secrets
9. Technical intangibles
, Lecture 2: Customer Segmentation 6 September ’19
Customer Segments
▪ Different groups of people or organisations an enterprise aims to reach and serve
▪ Why separate segments groups in separate segment
o Needs require and justify distinct offer → different needs → different offer
▪ Example: car industry, different prices, but same car. Different
customer groups require different products
o They are reached through different Distribution Channels: reach them through
different ways
▪ Example: condoms at gas stations.
▪ Made different offerings possible. Offerings that producer makes, can
be used in different ways; more possibilities (strawberry taste). Also, at
gas station its more expensive → distribution channel associated
pricing
o They require different types of Relationships
▪ Groenteboeren still exist, because of relationship with customer. If you
have premium product, part of the price is the premium relationship
▪ Provider will put energy in relationship, is included in price
o They gave substantially different profitability’s
▪ If COGS is x, and premium it by adding channel/brand, then
profitability is increased
o They are willing to pay for different aspects of the offer
▪ Car with personalised badge, then people will pay for it for higher price
Market Targeting Strategies
▪ Undifferentiated mass marketing: whole market with one offer → ignore segments
o Business models don’t distinguish between costumer segments
o Everything focused on entire group of customers: the value prepositions,
distribution channels, customer relationships
o Broadly similar needs & problems → phones, washing machines etc.
o Gross margin
o Epitomy of mass marketing: if a brand cover a complete product. Brand
defines not only the brand, but the product.
▪ Differentiated segmented marketing (sometimes premium): decide to target several
different market segments, spate offers for each
o Some business models distinguish between market segments with slightly
different needs & problems
▪ Example: banks. Different accounts: student, children, business, joint
accounts etc. they know exactly what the customer needs and the
profitability. Different types of customer → different pricing
strategy
▪ Aim: identifying high yield segments.
• How retain those segments: why buy again: quality, service,
personal relationship
• How do I get them in first place: student accounts, joints
accounts etc.
• Banks: supply side is segmented & receiving side is segmented
(apple pay, big banks etc.)
Lecture 1 3 September ’19
Intrepreneur: working in company, boss values you thinking entrepreneurial
- Understand the entrepreneurial processes
Societal entrepreneurship: contribute to societal unmet needs
Problems biotech
1. Concept phase -> commercial operation
a. Valley of death: 6 months’ financial issue
i. Flaws in terms of money & deliverables (How does value go up)
2. Finance becomes exponentially large
a. Companies sold or bankrupted before late phases → discuss exit, if you know
exit, then plan is different so discuss earlier bc depends bp
i. IPO
ii. Trade sale
iii. Sit on dividend (profit)
The business plan should cover
▪ Entrepreneur: captain on the ship (CEO no legal protection, fired without
compensation unless contract – clause)
▪ Idea, mission & strategy
▪ External factors & liability
o External factors: more than market, where do we move to as society
(environmental issue stayed)
o Liability: aansprakelijkheid
▪ IP, patents & trade secrets
o IP: has to be described in great detail
o Patents
o Trade secrets
▪ Marketing plan: not sales, how convince the world that good product, confident
product
▪ Production plan: how to deliver product?
▪ Personnel plan over time
▪ Management
▪ Financial plan
o Balance sheet
o PNL
o Cash flow: linked with figure to content plan (link with income or with
investment, if investment is in, recruit personnel at once, or later, so show in
cash flow)
▪ Free cash flow over 5 years
▪ Quarters first three years
▪ Half years after 3 years
, ▪ Dip is most important part: how much needed to survive negative cash
issue
Simple BP
▪ Make plan for 1, 3, 5, 10 years from now → 10 y is exit
▪ Who are customers
▪ Competitors
▪ What are my products
o PMC: product market combination
o Turnover
o COG: cost of goods (personnel, infrastructure)
o Price
o Value: value proposition (little to do with price)
▪ Why would customer buy at my place → quality, superior product
o Most difficult part
o Why could customer return to my place → stability, service, quality, validity
of x%
▪ What do I do when I reach my goals
o Define: what does it mean
o People HR plan
o Money: grants & subsidies → free money
Tactics = operational = midterm goals
Strategy = long term goals
Incentive: why do it?
▪ For the money? Important!! Keep in mind the exit
▪ Show true incentives
Large markets are incremental innovators
▪ Incremental innovators: Innovations that have little steps forward, but interesting for
established players
▪ To keep the big market, recognize the market
▪ Radical breakthroughs:
o Sell it as competitive advantage, take money & forget
o Not sell it, that’s when you start your own start up
▪ Too radical, then start other startup
▪ Incremental (findable from start by industry) or radical breakthrough, effects exit and
finances
Behavioural investment
1. European & cyclical: if market goes down, market stop investing
2. American & anti-cyclical: if market goes down, start investing
a. Has to come up again, invest in downslope, cash in up slow
→ how do sentiments change? Global balance out, dip does not be visible because they both
even out
Margin
▪ EBITDA: before tax etc → should be between 25-30%
, o Earning before, interest, tax, depreciation and ….
▪ In growth phase & stable phase
IPR: intellectual property as layers of protection
1. Registered trademark: ben & jerrys
2. Brand: unilever
3. Copyright
4. Registration (dossier) → not always, depending on the market
5. Patent
6. Commercial intangibles
7. Marketing intangibles
8. Trade secrets
9. Technical intangibles
, Lecture 2: Customer Segmentation 6 September ’19
Customer Segments
▪ Different groups of people or organisations an enterprise aims to reach and serve
▪ Why separate segments groups in separate segment
o Needs require and justify distinct offer → different needs → different offer
▪ Example: car industry, different prices, but same car. Different
customer groups require different products
o They are reached through different Distribution Channels: reach them through
different ways
▪ Example: condoms at gas stations.
▪ Made different offerings possible. Offerings that producer makes, can
be used in different ways; more possibilities (strawberry taste). Also, at
gas station its more expensive → distribution channel associated
pricing
o They require different types of Relationships
▪ Groenteboeren still exist, because of relationship with customer. If you
have premium product, part of the price is the premium relationship
▪ Provider will put energy in relationship, is included in price
o They gave substantially different profitability’s
▪ If COGS is x, and premium it by adding channel/brand, then
profitability is increased
o They are willing to pay for different aspects of the offer
▪ Car with personalised badge, then people will pay for it for higher price
Market Targeting Strategies
▪ Undifferentiated mass marketing: whole market with one offer → ignore segments
o Business models don’t distinguish between costumer segments
o Everything focused on entire group of customers: the value prepositions,
distribution channels, customer relationships
o Broadly similar needs & problems → phones, washing machines etc.
o Gross margin
o Epitomy of mass marketing: if a brand cover a complete product. Brand
defines not only the brand, but the product.
▪ Differentiated segmented marketing (sometimes premium): decide to target several
different market segments, spate offers for each
o Some business models distinguish between market segments with slightly
different needs & problems
▪ Example: banks. Different accounts: student, children, business, joint
accounts etc. they know exactly what the customer needs and the
profitability. Different types of customer → different pricing
strategy
▪ Aim: identifying high yield segments.
• How retain those segments: why buy again: quality, service,
personal relationship
• How do I get them in first place: student accounts, joints
accounts etc.
• Banks: supply side is segmented & receiving side is segmented
(apple pay, big banks etc.)
