June 15, 2019
June 15, 2019
June 19, 2019
Entrepreneurship & Engineering Innovation
Relationships between the entrepreneur and the angel investor at least for the southeastern part of the United States are essential. Although relationships have been stressed as important in engineering startups for more than 20 years, our co-author’s seminal dissertation indicates that professional relationships have become mandatory for growth funding. Additional experiential learning in our Engineering Entrepreneurship curriculum in the southeast would appear warranted. Hence we underscore these opportunities with feedback loops suggested in the implementation framework.
A conceptual framework for implementation is comprised of four steps. These steps are listed below.
Step 1: Ideation – The Life Blood of Entrepreneurship Step 2: Innovation – A Practical Implementation Step 3: The Real Opportunity Test Step 4: The Deal – Relationship Building
Step 1. Step 1 is critical because ideas are the lifeblood of the entrepreneur. Lateral thinking helps students generate outside-the-box concepts that can be vital in adding value to the customers.
Based on the results of this dissertation we would include the angel investor as a vital client in this process.
Value propositions ensure that your uniqueness and sustainable competitive advantage are verifiable … and supported by your marketing analysis and plan (See the modified BCG Matrix). What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying?
The use of technology to remove constraints is a lateral-thought game changer. Strategic planning identifies core competencies to be protected. Joint ventures, mergers and acquisitions, and R&D should be based upon facts. Analyses include time to market, ROI and sustainable competitive advantage. This is the time to include the angel investor as a key client because following the trust/relationship building approach discussed by Stephen Covey we can engage the angel investor as a client in building these vital relationships that are necessary for growth funding.
Step 2. In high technology based applications innovation becomes a practical implementation achieved by the systematic deployment of lean thinking and six sigma; the Shewhart Deming Cycle; and the systematic use of technology in a business narrative. This level of detail will be essential in developing a relationship with the angel investor as well as the end customer user.
Step 3. The purpose of this step is to ensure that the business and technology concept will create value that end user customers will pay a premium to receive. It is also vital in engaging angel investors to be able to provide the downstream growth funding essential to the venture’s ultimate success.
Step 4. We incorporate the details on specific requirements to gauge the angel investor as reported in our co-author’s dissertation. These relationship factors include: trustworthiness, ethics and honesty, integrity, passion, management ‘skin in the game,’ commitment to startup, market strategy, investment skills, scalability/sales strategy, reasonable burn rate, market size, exit strategy, strategic metrics and milestones and founder’s industry experience.
Czuchry, A. J., & Carson, S. A., & Lampley, J. H., & Knight, W. H. (2019, June), A Conceptual Framework for Implementation: Necessary and Sufficient Conditions for Southeast Angel Investments Paper presented at 2019 ASEE Annual Conference & Exposition , Tampa, Florida. 10.18260/1-2--31948
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