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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
Case I
PROVIDE ADVICE TO AN ENTREPRENEUR ABOUT INTELLECTUAL PROPERTY PROTECTION
Locked doors and a security system protect your equipment, inventory and payro. !ut "hat protects
your business#s most vauabe possessions$ %& a"s can protect your trade secrets, trademarks and
product design, provided you take the proper steps. 'hicago attorney (ara E.). 'enar o* +esh and (at,,
an %& *irm, contends that businesses shoud start thinking about these issues earier than most do. -Sma
businesses tend to deay securing %& protection because o* the expense,. 'enar says. -/hey tend not to
see the vaue o* %& unti a competitor in*ringes.. !ut a business that hasn#t appied *or copyrights or
patents and activey de*ended tem "i ikey have troube making its case in court.
0ne reason many business o"ners don#t protect their inteectua property is that they don#t recogni,e the
vaue o* the intangibes they o"n. 'enar advises business o"ners to take their business pans to an
experienced %& attorney and discuss ho" to dea "ith these issues. Spending money up*ront *or ega hep
can save a great dea ater by giving you strong copyright or trademark rights, "hich can deter
competitors *rom in*ringing and avoid itigation ater.
0nce you#ve *igured out "hat#s "orth protecting, you have to decide ho" to protect it. /hat isn#t a"ays
obvious. /raditionay, patents prohibit others *rom copying ne" devices and processes, "hie copyrights
do the same *or creative endeavors such as books, music and so*t"are. %n many cases, though, the
categories overap. Like"ise, trademark a" no" extends to such distinctive eements as a product#s coor
and shape. /rade dress a"s concerns ho" the product is packaged and advertised. 1ou might be abe to
choose "hat kind o* protection to seek.
)or instance, one o* +esh 2 (at,#s cients is /y %nc., maker o* push toys. !e*ore aunching the !eanie
!aby ine, 'enar expains, the o"ners brought in business and marketing pans to discuss %& issues. /he
pan "as *or a imited number o* toys in a variety o* styes, and no advertising except "ord3o*3mouth.
4etting a patent on a push toy might have been impossibe and "oud have taken severa years, too ong
*or easiy copied toys. /rademark and trade dress protection "oudn#t hep much, because the company
panned a variety o* styes. !ut copyrights are avaiabe *or scuptura art, and they#re inexpensive and
easy to obtain. /he company chose to register copyrights and de*end them vigorousy. 'enar#s *irm has
*ended o** numerous knocko**s.
/hat#s the next step: monitoring the market3pace *or knocko**s and trademark in*ringement, and taking
increasingy *irm steps to en*orce your rights. E**orts typicay begin "ith a etter o* "arning and coud
end "ith a court3ordered cease3and3desist order or even an a"ard o* damages. -%* you don#t take the
time to en*orce 5your trademark6, it becomes a very "eak mark,. 'enar says. !ut a strong mark deters
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
in*ringement, "ins a"suits and gets peope to sette eary.. Seep on your rights, and you### ose them. !e
proactive, and you# protect them 7 and save money in the ong run.
An inventor with a new! invente" te#hnoo$! #o%es to !o& 'or a"vi#e on the 'oowin$
%atters(
)&estions(
*+ In r&nnin$ this new vent&re, I nee" to invest a avaia-e reso&r#es in .ro"&#in$ the
.ro"&#ts an" attra#tin$ #&sto%ers+ /ow i%.ortant is it 'or %e to "ivert %one! 'ro%
those e''orts to .rote#t %! intee#t&a .ro.ert!0
1+ I have s&''i#ient reso&r#es to o-tain intee#t&a .ro.ert! .rote#tion, -&t how e''e#tive
is that .rote#tion witho&t a ar$e sto#2 o' reso&r#es to invest in $oin$ a'ter those that
in'rin$e on %! ri$hts0 I' I "o not have the reso&r#es to "e'en" a .atent, is it worth
o-tainin$ one in the 'irst .a#e0
3+ Are there #ir#&%stan#es when it is -etter 'or %e not to -e an innovator -&t rather
.ro"&#e 42no#25o''s6 o' other innovations0
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
Case II
Provi"e a"vi#e to an entre.rene&r a-o&t 'irin$ e%.o!ees
)iring an empoyee is a messy business. 8ust the thought o* having to recruit, train and manage a ne"
saes sou is enough to keep some saes managers *rom *oo"ing through "ith the task. !ut hoding on to
a saesperson "ho#s not per*orming or "ho#s disruptive to the team is guaranteed to exacerbate matters
do"n the road. !ut ho" do you kno" "hen it#s time to say -you#ve gotta go.$ %t#s simpe, according to
/ricia /imkin: -Lack o* production, ack o* production, ack o* production,. says the president o* &adigent,
a 'aro Stream, %inois, human resources consuting *irm *or emerging companies.
9ave :nderson, president o* 9ave :nderson#s Learn to Lead, concurs that per*ormance is one criterion *or
*iring. :nderson, "hose Los :tos, 'ai*ornia, company o**ers saes, management and eadership
consuting, thinks reps "ho are -dishonest, se*ish or disrespect*u. shoud *ace the axe.
1ou may *ear *iring a rep "i cause a morae dip in the troops. :*ter a, someone#s buddy is getting
sho"n the door. !ut making a tough choice can boster the spirits o* your saes squad. Says /amkin:
-)iring can positivey a**ect morae 5because6 it sends a message that the company "i take strong
measures to ensure the success o* the organi,ation. &oor per*ormers o"er the morae o* the team, and
they continuay break momentum and diminish the credibiity o* the saes manager..
!e*ore *iring, ho"ever, steps must be taken to egay protect your business. %t#s crucia that the empoyee
has been "arned in advance in "riting. 'oaching sessions "ith *aiing saes peope "i hep protect you
"hen it comes time to separate. /amkin advises that documentation must be deveoped in advance o* the
*iring, and that "hen it comes time *or the empoyee to go, the manger shoud conduct an exit intervie".
/hough *iring "i never be a savory part o* a manager#s ;ob description, it#s short 7 term pain *or ong 7
term gain. -Managers have to reai,e that "hen they keep the "rong person,. :nderson says, -there#s
more damage to the company than ;ust ack o* production..
<ere are some *iring guideines *rom +iiam Skip Mier#s &ro:ctive Saes Management =:M:'0M>:
1. ?ever in your o**ice: i* it#s your o**ice, you can#t eave i* the empoyee "ants to stay and tak.
@. Short and S"eet: :s you "ak in the door, say, -/he reason %#m here is to te this is your ast day
o* empoyment "ith this company.. 8ust get it out.
A. ?ever on a )riday: %* *ired on a )riday, the empoyee can#t start the process o* *eeing good. : he
or she can do is ste" about it over the "eekend.
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
B. 0utside hep: %* the empoyee says he or she has consuted an attorney or other ega counse,
stop the conversation immediatey and consut your <C department or attorney, "hoever heped
you dra*t your company poicy.
D. ?o hanging around: &ersona e**ects can be retrieved, but have the person eave the buiding.
:dvice to an entrepreneur:
:n entrepreneur, "hose business has stopped gro"ing, has read the above artice and comes to you *or
advice:
*+ Gee, these %ana$ers "is#&sse" in the arti#e are a -it ro&$h+ Even i' one .arti#&ar
.erson is not .ro"&#in$ as e7.e#te", "oesn8t this .erson sti "eserve to -e treate" with
res.e#t0
1+ It a..ears that the a&to%ati# ass&%.tion is that the e%.o!ee is at 'a&t 'or not
.er'or%in$ an" there'ore sho&" -e 'ire"+ B&t sho&"n8t the res.onsi-iit! 'a on %e as
the %ana$er an" the s!ste% that I have intro"&#e"0 Ma!-e the .erson is .er'or%in$ as
we as the sit&ation aows0
3+ /ow a% I to -&i" tea% s.irit within %! s%a #o%.an! when I sin$e o&t one .erson
'or a#2 o' .ro"&#tion an" 'ire hi% or her0
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
Case III
Provi"e a"vi#e to an entre.rene&r a-o&t s%a -&siness invest%ent #o%.anies
%t started out as a straight*or"ard consuting pro;ect *or Mahendra Eora and research partner Sundar
(adaya. /hey "ere anay,ing so*t"are trends and perusing market research studies to assess the si,e o*
various so*t"are markets. !ut a*ter spending B0 hours ooking *or in*ormation that shoud have taken 10
minutes to access, the pair concuded that more advanced toos "ere needed to search the internet and
databases o* pubic in*ormation. +ithin months, they aunched %nteiseek %nc., providing so*t"are to
capture, track and anay,e in*ormation *or use in strategic panning, market research, product
deveopment and brand marketing. Eora, AF, "as no stranger to start3ups. !y the time he co3*ounded
%nteiseek in 1FFG, he aready had three business aunches under his bet. <e sod a three to )ortune
D00 *irms, providing capita *or %nteiseek. <is initia investment o* a *e" miion doars supported
operations the *irst coupe o* years and through t"o ma;or product aunches.
!y 1FFF, the 'incinnati 'ompany "as aying the ground"ork *or its *irst round o* venture capita.Eora
had had t"o years to contempate his dream investor. )oremost, si,e did matter: /he venture capitaist
shoud have the "here"itha *or ongoing *inancing, but not be so arge that it shunned a but eaborate
business modes. )inding an investor "ith a broad net"ork o* investing partners aso "as important to
the H10miion company. -%* you become "idy success*u and pan to raise HD0 miion someday, then
5the investor6 shoud have access to the big investors. /he net"ork is aso important because it can
5introduce6 you to customers,. says Eora, "hose cients incude '!S, )ord Motor 'o. and ?okia. )inay,
Eora "as ooking *or operationa experience. -: ot o* E's are phenomena in advising you about "hat to
do, but they#ve never done it themseves,. he observes. Eora utimatey *ound his venture match in
'incinnati3based Civer 'ities 'apita )unds, a sma business investment company. +hie Civer 'ities "as
not arge, it "as "e3connected and managed by industry veterans "ith extensive pro*essiona
experience.
Startin$ S%a
Licensed and reguated by the S!:, S!%'s are generay organi,ed and operated ike any other venture
capita *und. !ut unike traditiona *unds, S!%'s use their o"n capita and ong3term oans to sma
companies. 0n the "hoe, S!%'s tend to be more risk3toerant than banks or traditiona venture
capitaistsI.%nteiseek#s S!%' banker removed barriers to reaching arger, mainstream investors. Led by
river cities capita *unds, the initia HJ miion investment incuded capita *rom the venture arm o* ?okiaK
ater investors incuded )ord Motor 'o. and 4enera :tantic &artners LL'. -once you get a E' ike Civer
'ities, it is much easier to get access to bigger E's,. says Eora. -/hey can go to E's and say L0ne o* our
companies is doing so "e, "e#re going to put in more money, and you guys shoud come in#..
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
Down B&t Not O&t
S!%'s invested roughy [email protected] biion in about @,100 companies in the 1@3month period ending September
A0, @00@ do"n *rom HB.J biion invested in @,@DB companies in the same period one year earier. Like
mainstream investors, they have had to ad;ust to deteriorating economic conditions. -Eauations have
come do"n on deas, and due diigence periods have increased,. says &atrick <amner, vice resident o*
'apita South"est 'orp., a 9aas3based S!%'. -&eope are being *ar more discriminating in ho" they
invest their capita..
-/he bar has been raised even more *or sma businesses trying to get capita,. he continues. -:s opposed
to the overa venture industry, "hich has had a very marked decine in *inancing activity, S!%'s are do"n
but sti active..
?or has quaity been an overriding concern, even as S!%'s engage in riskier deas than their mainstream
counterparts. -&art o* "hat has happened "ith the bursting o* the bubbe is that the ideas being proposed
are based on more substantive modes,. says Ed"in Cobinson, managing director o* Civer 'ities 'apita
)unds. -: ot o* the excess is being "rung out the system.. +hie the venture shakeup has impacted
conventiona the "ay some S!%'s operate. -9uring the bubbe years, there "as probaby more o* an
incination to over*und,. says ?:S!%'s Mercer. -% don#t mean in the sense that money might not be
;usti*ied, but to make the unconditiona investment. % suspect that "hat you#re seeing no" is a ot more
investing on a miestone basis.. )or instance, a company that requires HA miion over three years is ikey
to receive H1 miion up*ront, getting the rest a*ter meeting revenue and gro"th targets. )e"er venture
doars, couped "ith the banking industry#s reticence to end to sma businesses, has contributed to an
overa capita shortage, adds Mercer. -!anks that had been out a itte bit *urther on the risk curve than
they probaby normay do,. he says. -/he banks# o"n procivity and the reguators kind o* *orced a
puback, so there has been a tremendous puback in bank credit avaiabiity even *or sma businesses
that have had ong time banking reationships..
/he S!%' program, mean"hie, is attracting mainstream investors having di**icuty raising capita *or
venture3backed investments. /he increased interest bodes "e *or the sma *irms that S!%'s target:
companies "ith a net "orth o* ess than H1M miion and average a*ter3tax earning o* ess than HJ miion
*or the past t"o years.
A"vi#e to an entre.rene&r
An entre.rene&r, who is an owner %ana$er o' a s%a -&siness an" oo2in$ to raise
9:,;;,;;;, has rea" the a-ove arti#e an" #o%es to !o& 'or a"vi#e(
*+ <hat are the a"vanta$es o' $oin$ to an SBIC over an" a-ove a -&siness an$e or
vent&re #a.itaist0
1+ <hat are the "isa"vanta$es an" how #an the! -e %ini%i=e"0
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
Case IV
Provi"e a"vi#e to an entre.rene&r a-o&t -ein$ %ore innovative
+hen ?ei )rankin began o**ering round3the3cock teephone customer service in 1FFM, customers oved
it. /he o**ering *it the strategic direction )rankin had in mind *or 9ata"ork*orce, his 9aas3based
teecommunications 7 engineer sta**ing agency, so he invested in a phone system to route a*ter hours
cas to his 10 empoyees# home and mobie phones. /oday, )rankin, AM, has neary D0 empoyees and
continues to expore "ays to improve 9ata"ork*orce#s service. /"enty3*our3hour phone service has
stayed, but other trias have not. 0ne *aiure "as deveoping individua +eb sites *or each customer. -+e
took it too *ar and spent HA0,000 then abandoned it,. )rankin recas. : try at gobay extending the
brand by advertising in ma;or "ord cities "as aso dropped. -%t "orked pretty "e,. )rankin says, -unti
you added up the cost..
)rankin#s e**orts are simiar to an approach caed -port*oios o* initiatives. strategy. /he idea, according
to Lo"e !ryan, a principa in Mc(inney 2 'o., the ?1' consuting *irm that deveoped it, is to a"ays
have a number o* e**orts under"ay to o**er ne" products and services, attack ne" markets or other"ise
impement strategies, and to activey manage these experiments so you don#t miss an opportunity or
over commit to an unproven idea.
/he port*oio o* initiatives approach addresses a "eakness o* conventiona business pans3that they make
assumptions about uncertain *uture deveopments, such as market and technoogica trends, customer
responses, saes and competitor reactions. !ryan compares the port*oio o* initiatives strategy to the ship
convoys used in +ord +ar %% to get suppies across oceans. !y assembing groups o* miitary and
transport vesses and sending them in a mutuay supportive group, panners coud rey on at east some
reaching their destination. %n the same "ay, entrepreneurs "ith a port*oio o* initiatives can expect some
o* them to pan out.
Ma2in$ a Pan
/hree steps de*ine the port*oio o* initiatives approach. )irst, you search *or initiatives in "hich you have
or can readiy acquire a *amiiarity advantage 7 meaning you kno" more than competitors about a
business. 1ou can gain *amiiarity advantage using o"3cost piot programs and experiments, or by
partnering "ith more kno"edgeabe aies. :void business in "hich you can#t acquire a *amiiarity
advantage, !ryan says.
:*ter you identi*y *amiiarity3advantaged initiatives, began investing in them using a discipined, dynamic
management approach. &ay attention to ho" initiatives reate to each other. /hey shoud be diverse
enough that the *aiure o* one "ont endanger the others, but shoud aso a *it into your overa strategic
direction. %nvestments, represented by product deveopment e**orts, piot programs, market tests and the
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
ike, shoud start sma and increase ony as they prove themseves. :void over investing be*ore initiatives
have proved themseves. /he third step is to pu the pug on initiatives that aren#t "orking out, and step
up investment in others. : port*oio o* initiatives "i "ork in any si,e company. )rankin pursues @0 to A0
at any time, kno"ing F0 percent "ont pan out, -/he main idea is to keep those initiatives running,. he
says. -%* you don#t, you#re so"ing do"n..
A"vi#e to an entre.rene&r
An entre.rene&r, who wants his 'ir% to -e %ore innovative, has rea" the a-ove arti#e an"
#o%e to !o& 'or a"vi#e(
*+ This whoe i"ea o' e7.eri%entation see%s to %a2e sense, -&t a those itte 'ai&res
#an a"" &., an" i' there eno&$h o' the%, then this #o&" ea" to one -i$ 'ai&re5the
-&siness $oin$ "own the "rain+ /ow #an I -est $et the a"vanta$es o' e7.eri%entation
in ter%s o' innovation whie aso re"&#tion the #osts so that I "on8t r&n the ris2 o'
osin$ %! -&siness0
1+ M! e%.o!ees, -&!ers, an" s&..iers i2e wor2in$ 'or %! #o%.an! -e#a&se we have a
ot o' wins+ I a% not s&re how the! wi ta2e it when o&r #o%.an! -e$ins to have a ot
%ore 'ai&res >even i' those 'ai&res are s%a?5 it is a .s!#hoo$i#a thin$+ /ow #an I
han"e this tra"e5o''0
3+ Even i' ever!one ese a##e.ts it, I a% not s&re how I wi #o.e+ <hen .ro@e#ts 'ai it hits
%e .rett! har" e%otiona!+ Is it @&st that I a% not #&t o&t 'or this t!.e o' a..roa#h0
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
Case V
PROVIDE ADVICE TO AN ENTREPRENEUR ABOUT NONTRADITIONAL FINANCING
+hen Lissa 9#:quanni created a gourmet chocoate business in her :bany, ?e" 1ork, basement in 1FFM,
she had not ony a passion *or candy3making, but aso a knack *or spurring citi,en invovement. /he
*ormer nonpro*it executive had "orked *or "omen#s advocacy groups, most recenty promoting breast
cancer a"areness. %* there "as one thing she kne", it "as ho" to ray community support.
<er abiity to everage oca resources "oud be invauabe as she made her business a *ixture o* her
:bany neighborhood. :nd in no area "ere those skis as critica as in *inancing ast year, 9#:quanni
"anted to move her business, the chocoate 4ecko, to an abandoned buiding three bocks a"ay, she
needed H@D,000.. Eounteers aso heped renovate the buiding, cutting pro;ect costs *orm an estimated
HA,00,000.
'heck out 9#:quanni#s unorthodox and creative *inancing pan: :n economic deveopment group, the
:bany Loca 9eveopment 'orp., oaned her HFD,000 to buy the buiding. 9#:quanni obtained a
H1,00,000 government guaranteed oan *rom a oca credit union to renovate the structure. )aNade
improvements "ere *unded through a matching grant program to encourage commercia deveopment in
:bany. : oca community deveopment *inancia institution used a state program to *und energy3e**icient
upgrades, incuding ne" "indo"s, ight *ixtures, *urnaces and siding. Says 9#:quanni, - /here "ere ots o*
di**erent pieces o* the pu,,e to identi*y and *igure out ho" to access..
'onventiona *inancing "asn#t an option. -% "as ooking at a business that did about HBB,000 in saes
doing a H@J0,000 pro;ect, and the traditiona *unders "ere apprehensive,. expains 9#:quanni, AG. /hey
urged her to rent a store*ront rather than buy the rundo"n buiding. Ondeterred, 9#:quanni met "ith a
neighborhood group to deveop her expansion pan. %t "asn#t the *irst time the community had heped
out. %n 1FFF, the cashstrapped chocoatier needed mods and a temperer *or the 'hristmas rush.
Cecaing a strategy she had seen in a maga,ine, she sod discounted gi*t certi*icates to raise capita.
9#:quanni o**ered customers H@D in *ree chocoates *or every H100 in gi*t certi*icates purchase. -: ot o*
*oks maied them as gi*ts to *riends, *amiy and co3"orkers,. 9#:quanni says. - :nd most o* those peope
ordered chocoates. My customer base expanded..
%ndeed, many entrepreneurs success*uy aunch a business ony to encounter *unding hardships as they
attempt to gro". /he abiity to think outside the box, experts say, is critica *or *irms short on *unding.
-/here are pockets o* money out there, "hether it be municipaities, counties, chambers o* commerce,.
says !i !righam, 9irector o* the Sma !usiness 9eveopment 'enter in :bany. -/hose are the oan
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INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES
Sub: Entrepreneurship Management Max. Marks:100
programs that no one seems to have in*ormation about. : ot o* these programs "i not require the
coatera and cash that is typica o* traditiona 5oans6. /hey may be a itte more enient as *ar as credit
history goes. /hat#s one o* the key roes "e can pay3"hat entrepreneur is going to think 5he or she6 can
quai*y *or <O9 money$
A"vi#e to an entre.rene&r
An entre.rene&r, who is oo2in$ to e7.an" -&t has i%ite" a##ess to tra"itiona 'inan#in$, has
rea" the a-ove arti#e an" #o%es to !o& 'or a"vi#e(
*+ I want to 'in" a itte .ot o' $o" i2e Lissa D8AA&anni+ <here sho&" I oo20
1+ I i2e the $i't #erti'i#ate i"ea to raise %one! an" -&i" %! -&siness+ <hat other t!.es o'
.ro"&#ts "o !o& thin2 that a..roa#h wi wor2 'or0
3+ Over the !ears I have .ai" a ot o' ta7es+ Sho&" I 'ee $&it! 'or a##essin$ $overn%ent
B s&-si"i=e" %onies to -&i" %! -&siness, or sho&" I 'ee @&sti'ie"0

10