Starting Our Own Business:

The Entrepreneurship
Alternative

Andhy Widodo
Bandung Institute of Technology
 CURRICULUM VITAE

Name : Andhy Widodo

E-mail : andhywid@gmail.com
In ITB : Assisstant Director
Coordinating Business Assistance
Company : - CV Abadi Pusaka Bahana
- Lembaga Manajemen Ganesha (LMG)
- Abadi Rental Car
Education : - Bachelor Degree from Industrial Engineering, ITB
- Master Degree from Management Magister,
Widyatama University
 EXPERIENCES
November 2009: Workshop on technopreneurship Shool on
Internet (SOI) Asia in Keio University-Japan
• Train & share to other countries delegation how to run business
incubator which specialized on technopreneurship
• Discussion lead to improve IT network infrastructure for distant learning
from Japan to 14 countries in Asia
December 2009: Training on retirement preparation-Cimahi
Government Official
• Train retired candidates of Cimahi public servant to prepare their
retirement especially how to generate income by enterpreneurship
• November 2008: Capability Maturaty Model Integration (CMMI) and
Kematangan Industri Perangkat Lunak Indonesia (KIPI) Training
for Industrial Ministry of Republic of Indonesia
• Train CMMI for softwarehouse & stakeholder to improve quality
software developer especially for government software procurement
• Socialize assessment procedure of KIPI
May 2008 – October 2008 : ICT Governance for Education Ministry
of Republic of Indonesia to improve service excellency to
stakeholders
• Existing ICT Assessment
• Gap analysis betweeb existing and expected ICT Governance
• Design ICT Governance Expected
• Design ICT Governance
 EXPERIENCES

November 2008 – December 2008 : Quality of Network & Service Quality

Assessment of National Education Network (Jardiknas)
• Network Performance Assessment
• Service Quality Survey to National Education Network (Jardiknas) customer

March 2008 – August 2008 : Smart Rural & Village through ICT support
planning for PT Telkom Corporate Social Responsibility (CSR) Prograsm
• Feasibility analysis based on rural & village existing condition
• Design Smart Rural & Village through ICT support Program
• Design Community Development for this Program

November 2007 – December 2007 : Technical Assistant for Business

Incubator Development, University of Surabaya
• Feasibility analysis based on existing condition
• Design business incubator organization
• Making recommendation and strategy to enhance organization performance.

May 2007 – September 2007 : Study on Preparation for Implementation

Software House Standardization Policy based on Capability Maturity
Model, Ministry of Industry, Republic Indonesia.
• Making strategy direction based on Gap Analysis, bench marking and SWOT
analysis
• Develop assessment procedures and organization
 EXPERIENCES

June 2007 – August 2007 ; Indonesia Automotive Metal Stamping Training

Service Provider Rating, USAID Senada & West Java Industry Department
• Desk Study & Survey to identify industry automotive metal stamping training
service provider in Indonesia
• Develop Rating System Development of industry automotive metal stamping
training service provider in Indonesia
• Launch the proceeding of industry automotive metal stamping training service
provider rating in Indonesia
February 2007 – May 2007 : Feasibility Study of integrated industry Palm
Plantation, CPO Palm Oil Industry, Biodiesel, & Biogas in Riau, PT
INDOENERGY & PT WIJAYA KARYA
• Desk & Field Study for data collection
• Feasibility analysis based on marketing and financial aspects
• Making recommendation and strategy to win the international palm oil provider
competition
July 2006 – November 2006 : Study on Software House Standardization
Policy based on Capability Maturity Model, Ministry of Industry, Republic
Indonesia.
• Conducting case study for exploring and identifying problems and key success
factors for ICT industry cluster in Indonesia.
• Define Kematangan Industri Perangkat Lunak Indonesia (KIPI) as
softwarehouse standard
 EXPERIENCES

2005 : Policy Making for SME Development with Porter’s

Diamond Model and SWOT Analysis (Case Study: SME
Manisan Pala Purwakarta), PT Wahana Pengembangan
Usaha, Bandung.
• Making policy for the small industry through
analysis existing condition and give the
recommendation to build tough industry.
2004 : Strategy Design for Small-Medium
Enterprise (Mendong) in Tasikmalaya, West
Java, PT Wahana Pengembangan Usaha,
Bandung.
• Making strategy based on supply chain analysis and process diagnosis cluster

element.
 The Nature and Development
of Entrepreneurship

The word “entrepreneur” stems from French and

means “between-taker” or “go between.”
The definition involves four aspects:
1. The creation process.
2. The devotion of time and effort.
3. The assumption of risk.
4. Rewards of independence, satisfaction,
money.
7
 Entrepreneurship…

is the process of creating something new

with value by devoting the necessary time
and effort, assuming the accompanying
financial, psychic (physical) and social risks,
and receiving the resulting rewards of
monetary and personal satisfaction and
independence.

8
• An entrepreneur is a person who seeks a profitable
opportunity and takes the necessary risks to set up
and operate a business.
• Differ from managers through their overriding
responsibility to use the resources of the
organization to accomplish their goals.
• Willing to take risks.
• Classic Entrepreneurs
• Social Entrepreneurs
• More than 11% of Americans run their own business.

• In an average month, Americans start approximately

465,000 new businesses.

• The past two decades have shown a heightened interest

in entrepreneurial careers.

• People choose entrepreneurship for many reasons

– Dissatisfaction with traditional work

– Their ideas fulfill customer needs

• Being our Own Boss
– Self-management is the motivation that drives many
entrepreneurs.
• Financial Success
– Entrepreneurs are wealth creators.
• Job Security
– Over the past ten years, large companies have
eliminated more jobs than they have created.
• Quality of Life
– Starting a business gives the founder some choice
over when, where, and how to work.
Education
• Nowadays colleges and universities offer entrepreneurship majors.
• Universities are helping students launch businesses.
• Many programs teach entrepreneurship to young people.
Information Technology
• Technology has given entrepreneurs tools that help them compete.
• Entrepreneurs have used information technology to revolutionize industries.
Demographic and Economic Trends
• Aging of world’s population.
• Growth of two-income families.
• Vision - entrepreneurs begin with an overall idea for how to make their
business idea a success
• High Energy Level - a willingness to work hard
• Need to Achieve - entrepreneurs work hard because they want to excel
• Self-Confidence - fearlessness in the face of difficult odds
• Tolerance for Failure - entrepreneurs are not easily discouraged
• Creativity - entrepreneurs devise innovative ways to overcome difficult
problems and situations
• Tolerance for Ambiguity - entrepreneurs take in stride uncertainties.
• Internal Locus of Control - entrepreneurs believe they can control their
own fate
• Selecting a Business Idea
– Find something you love to do and are good at doing

– Can your idea satisfy a need in the marketplace?

• Entrepreneurs must be sure that the idea they

choose has interest in the marketplace

Business Plan
 1.Motivation and Goals – Why do you want to start your own business and what do you intend to achieve?
2.Target Market and Customers – To whom are you going to sell your products and/or services.
3.Market Analysis – Is your target market growing, static or shrinking? Why?
4.Value Statement – What value will your product and/or service give to your customer. Will that value be perceived as worth the
price you will charge for the product or service?
5.Competitive Edge – Who are your top competitors and why will people buy YOUR product or service.
6.Marketing/Sales Strategy – How are you going to market and sell your products/services? What is the estimated cost of sales
and marketing programs?
7.Internet (e-commerce) Marketing and Sales Strategy – How will you use the internet and what are the associated costs?
8.Personnel Skills Assessment – What is your education background and work experience in the business you plan to start?
Are there skills you will need that you do not possess?
9.Office Location and Business Equipment Requirements– Located in home or leased office space? Define all needed office
equipment and associated cost. (e.g., desk, chairs, phones, computer, fax, internet, printer, etc.)
10.Business Name and Registration – What type of business organization will you register as- Sole Proprietor, Limited Liability
Corp (LLC), Corporation, etc. Each type of organization has it own rules of operation. Understand what these are.
11.Licenses, Permits and Insurance– What license, permits and insurance are needed to operate. What is the associated
cost?
12. Cost Analysis – What are all of my projected costs (fixed, variable, product, delivery, etc.)
13. Income Forecast – What are my projected revenues for the next set time period (typically one year)
14. Cash Flow/Break-Even Statement – What will my cash position be after accounting for estimated sales, costs and
investments in my company. (typical time period is one year.) How much do I have to sell on a monthly basis to breakeven?
This Business Planning Basics outline is not intended to serve as a thorough business plan
but as a preliminary guideline to help you think through important business planning
aspects.
© Quadrant Business Management
Group – All Rights Reserved
Helping Businesses Grow
• Debt Financing
– Credit Cards
– Family and Friends
– Bank Loans

• Equity Financing
– Venture Capitalists
– Angel Investors
• Venture capital is equity financing to high risk young companies
(sometimes also a combination of other financing instruments)
• Venture capitalists are, before everything else, after extremely high
returns on investments (30-60% per annum depending on the risk)
• High expected return of VCs makes it very expensive financing
method for entrepreneurs
• Risk is considered higher the earlier the development phase of the
venture is
• Funds are usually :
– Raised from the investors (limited partners)
– By the firm (general partners)
– For a set period of time (around 12 years)
• Supposed to return above-average
interests
• By investing in private companies and
exiting via IPO or buyout
• Bank looks at its immediate future;
influenced by historical data/experience
• VC look to its longer run future
• For VC; Product Feature, Its prospect, its
marketability > financial analysis
• Bankers are Creditors; VC are owners
Invest in long term capital, not interest
income
• Profits are uncertain, highly embedded
business risk, VC pertains risky business
• Why? It’s difficult to judge the value/worth
of early stages companies
• VC must set up funding limit, risk control,
policy, proposal size relative to VC size,
maturity, character/profile and area of
expertise of founders, requirement and
evaluation procedure to reduce risks
 Market
MANAGEMENT
Products & Financial
SKILLS
Viability

-CHARACTER - Function
- COMMITMENT -Idea
- Demand
- COMPETENCE - Better to have:
- Test Market
- CAPABILITY Prototype
- Market Survey
- COMPLETENESS Pilot Plant
- Financial
(TEAM) Projections
• Business Incubators is one of key way
supports new ventures
• Enterprise Zones
– Encourage entrepreneurship in specific
geographic areas
• Start Up Capital Program (SUCP)
– In Indonesia this program was initiated by
research and technology minister
 Business
Commercial Knowledge
Start up
Start up Capital
Product

Facillity/
Infra Business
Incubator Enterprise
structure

Start up
Access to
Entrepre
Market
neur Biz
Community
 Take Action, Miracle Happen
No Failure, but there must be success or learning