executive MBA subject 11

Entrepreneurship

Year 1, term D. 8.5 ECTS, about 212 hours, 10 parts. Part 1 is free.

task, condition, standard

What you will be able to do

Task, condition and standard

Task

Develop and pitch a tested business idea with a model, unit economics and a funding ask.

Condition

Given four weeks, a small test budget and access to at least ten possible customers.

Standard

The idea is backed by customer evidence, the unit economics work, and the pitch is clear in five minutes.

Who it is for: Anyone planning to start a business, a side business or a new venture inside a firm.

how this subject works

Free entry, voice and your learning style

Part 1 is free to try. Read it, listen to it and answer it before you decide. Join the programme, or this subject on its own, to open the other parts.

Listen. Every part has a Listen button that reads it aloud.
Speak or type. Answer each part by talking (press Speak) or by typing. Your answers stay on this device only.
Learn your way. Every part has a See, Hear, Do and Read-and-write route. Not sure which suits you? Take the eight-question learning-style check.

10 parts

The parts, with worked examples

Part 1 Opportunity recognition 21 hUnderstand: spot

Good opportunities start with a problem many people have, feel often and would pay to solve.

Look for frequent, painful, paid-for problems
Changes in rules, technology or habits open new gaps
Write the problem before the solution

Worked example: Worked-example figures, in your currency. Shop owners spend 5 hours a week on stock counts. At 10 per hour that is 50 a week, 2,600 a year. A tool at 300 a year is an easy saving.

Activity: List five problems you see and score them for frequency, pain and willingness to pay.

Standard: Five problems scored and the top one explained.

Learn your way

See. Sketch "opportunity recognition" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. List five problems you see and score them for frequency, pain and willingness to pay.

Part 2 Customer discovery 21 hApply: interview

Talk to customers before you build. Ask about their past behaviour, not their opinions of your idea.

Ask "when did you last..." not "would you buy..."
Talk to at least ten people
Look for patterns and stop when you hear the same answers

Worked example: Worked-example figures, in your currency. Of 12 shop owners, 9 had counted stock by hand in the last week and 7 had lost money from errors: 75% and 58%. The problem is real.

Activity: Interview ten possible customers using past-behaviour questions.

Standard: Ten interviews logged and a pattern stated with percentages.

Learn your way

See. Sketch "customer discovery" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Interview ten possible customers using past-behaviour questions.

Part 3 Business model design 21 hCreate: design

A business model shows who you serve, what you offer, how you reach them, how you earn and what it costs.

Customer, value, channel, revenue, cost
Key partners and resources
Change one box and check the others still fit

Worked example: Worked-example figures, in your currency. Model: small shops, stock counting app, sold through a wholesaler, 25 a month, cost 8 per user. Margin 17 per user per month.

Activity: Draw your business model on one page.

Standard: All boxes filled and they fit together.

Learn your way

See. Sketch "business model design" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Draw your business model on one page.

Part 4 Lean experiments and MVP 21 hApply: test

A minimum viable product is the smallest thing that tests your riskiest belief. Test, learn, change.

Name the riskiest belief
Design a cheap test with a pass mark
Decide in advance what you will do if it fails

Worked example: Worked-example figures, in your currency. Belief: shops will pay 25 a month. Test: landing page with a pre-order button shown to 200 shops. Pass mark 5%. Result 14 sign-ups, 7%: pass.

Activity: Run one cheap test with a pass mark set in advance.

Standard: Pass mark written before the test and the result reported honestly.

Learn your way

See. Sketch "lean experiments and mvp" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Run one cheap test with a pass mark set in advance.

Part 5 Unit economics 21 hApply: calculate

Unit economics show whether each customer makes or loses money. If one customer loses money, more customers lose more.

Acquisition cost per customer
Margin per customer per month
Months to pay back acquisition cost

Worked example: Worked-example figures, in your currency. Acquisition cost 85, margin 17 a month: payback 5 months. If customers stay 24 months, lifetime margin = 408.

Activity: Calculate payback and lifetime margin for your idea.

Standard: Both correct and one way to improve them named.

Learn your way

See. Sketch "unit economics" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Calculate payback and lifetime margin for your idea.

Part 6 Funding and investors 21 hEvaluate: choose funding

Money can come from savings, customers, grants, loans or investors. Each has a price in cost, control or obligation.

Customer money is the cheapest funding
Loans must be repaid regardless of success
Investors take a share of ownership

Worked example: Worked-example figures, in your currency. You raise 100,000 for 20% of the company. The value after the investment is 100,000 / 0.20 = 500,000.

Activity: Compare three funding sources for your idea.

Standard: Cost and control of each stated and one chosen.

Learn your way

See. Sketch "funding and investors" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Compare three funding sources for your idea.

Part 7 Founding team and equity 21 hAnalyse: agree

Co-founders should agree roles, time, ownership and what happens if someone leaves, in writing, at the start.

Split ownership by contribution and commitment
Use vesting so shares are earned over time
Write it down

Worked example: Worked-example figures, in your currency. Shares vest over 4 years with a 1-year cliff. A co-founder leaving after 2 years keeps half of their shares.

Activity: Write a one-page founders agreement outline.

Standard: Roles, split, vesting and exit terms included.

Learn your way

See. Sketch "founding team and equity" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Write a one-page founders agreement outline.

Part 8 Growth and scaling 21 hEvaluate: plan growth

Grow when unit economics work. Scaling a loss-making model only makes the loss bigger.

Find one channel that works and push it
Watch payback as you grow
Hire for the next stage, not the last

Worked example: Worked-example figures, in your currency. At 100 customers with payback of 5 months, you can grow. At 1,000, acquisition cost rises to 120: payback becomes about 7 months, still acceptable if customers stay 24 months.

Activity: Plan the next 12 months of growth with one main channel.

Standard: Channel chosen with numbers and a payback limit set.

Learn your way

See. Sketch "growth and scaling" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Plan the next 12 months of growth with one main channel.

Part 9 Legal structure and IP 21 hUnderstand: choose

The legal form affects tax, liability and how you raise money. Protect names, code and designs early.

Limited company separates personal and business risk
Register your name and key marks
Keep code and designs owned by the company

Worked example: Worked-example figures, in your currency. A sole trader with 50,000 of debt is personally liable. A limited company with the same debt usually limits loss to what was invested, unless personal guarantees were given.

Activity: Choose a legal form and list what you must protect.

Standard: Form justified and at least three protections listed.

Learn your way

See. Sketch "legal structure and ip" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Choose a legal form and list what you must protect.

Part 10 Pitch day 21 hCreate: pitch

A pitch tells a short story: problem, solution, proof, model, team, ask.

Five minutes, ten slides at most
Show customer evidence
End with a clear ask

Worked example: Worked-example figures, in your currency. Ask: 100,000 for 20%, to reach 1,000 shops in 12 months with payback of 7 months.

Activity: Deliver a five-minute pitch to a panel.

Standard: Every section present, numbers correct, questions answered.

Learn your way

See. Sketch "pitch day" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Deliver a five-minute pitch to a panel.

ten checks

Check yourself

Say or write your answer first, then read the model answer.

Q1. What makes a good opportunity?
Model answer: A frequent, painful problem people will pay to solve. (Covered in part 1: Opportunity recognition.)
Q2. Why ask about past behaviour?
Model answer: Opinions about the future are unreliable; past actions are facts. (Covered in part 2: Customer discovery.)
Q3. 9 of 12 said yes. Percentage?
Model answer: 75%. (Covered in part 2: Customer discovery.)
Q4. Name the five core boxes of a business model.
Model answer: Customer, value, channel, revenue, cost. (Covered in part 3: Business model design.)
Q5. Why set the pass mark before the test?
Model answer: So you cannot move the goal after seeing results. (Covered in part 4: Lean experiments and MVP.)
Q6. Acquisition cost 85, margin 17 a month. Payback?
Model answer: 5 months. (Covered in part 5: Unit economics.)
Q7. 100,000 for 20%. Value after investment?
Model answer: 500,000. (Covered in part 6: Funding and investors.)
Q8. 4-year vesting, leave after 2 years. Share kept?
Model answer: Half. (Covered in part 7: Founding team and equity.)
Q9. Why not scale a loss-making model?
Model answer: More customers make a bigger loss. (Covered in part 8: Growth and scaling.)
Q10. What does a limited company protect?
Model answer: Personal assets from business debts, in most cases. (Covered in part 9: Legal structure and IP.)

slides L1 to L7

The seven-level ladder, slide by slide

Slide 1: L1 Starting out. Problems worth solving. Speaker note: Say: put "starting out" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 2: L2 Customers. Interviews about past behaviour. Speaker note: Say: put "customers" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 3: L3 Model. Five boxes that fit. Speaker note: Say: put "model" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 4: L4 Testing. MVP and pass marks. Speaker note: Say: put "testing" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 5: L5 Numbers. Unit economics. Speaker note: Say: put "numbers" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 6: L6 Funding and team. Money, ownership, vesting. Speaker note: Say: put "funding and team" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 7: L7 Launching. Growth, protection and the pitch. Speaker note: Say: put "launching" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.

how it is judged

Marking rubric

Marking rubric (Not yet, Meets, Exceeds)
Criterion	Not yet	Meets	Exceeds
Accuracy	Several figures or facts are wrong.	Main figures are correct and the working is shown.	Figures are correct and checked a second way.
Use of entrepreneurship tools	Tools are named but not used.	The right tools are used for each step.	Tools are adapted to the case and their limits are stated.
Recommendation	No clear answer.	A clear answer backed by the analysis.	A clear answer that also says what would change it.
Communication	Hard to follow.	Answer first, clear and short.	Clear, short and persuasive under questions.

jobs this leads to

Where this takes you

Founder. Starts and runs a new business.
Venture builder or intrapreneur. Starts new ventures inside a firm.
Startup advisor. Helps founders test and fund ideas.

language

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This subject is in English first. Choose any language and the page is translated for you by machine, with the English kept as the official text.

Keep going

All subjects Previous: Strategy and Business Models for Emerging Markets Next: IT Management

Draft for review. Not live. Credit values are aligned with the European credit system for orientation only and are not an accreditation.