HUM120-L12

Persuading Customers III: Persuasion in Non-traditional Ventures

• internship
• mission-driven ventures
  • non-profit, large NGOs
• the giving

intrapreneurship:

1. Large non-profits
2. large corporations

purpose-driven entrepreneurship:

3. nonprofit startups
4. social impact startups

intrapreneurship

• Intrapreneurs and the innovates's dilemma
• every big company starts a small, innovative company
• such companies will inevitably fall behind: blockbuster and Kodak

intrapreneurship: the good, the bad, and the ugly

• the good
  • have a safety net
  • can leverage a big name/brand = credibility
  • will inherit partners and customers
• the bad
  • you are part of a slow-moving giant
  • you are likely not the decision-maker
  • you may not freedom to choose your team
  • fear of failure vs. thrill of winning
• the ugly
  • politics

intrapreneurship: recommended process

1. find fellow entrepreneurs
2. do innovative as a side hustle (10%)
3. follow the lean startup method

• build something small first (prototype)
• ensure it is a must-have incline with corporate priority
• fly under the radar

4. Share ownership: "It's our startup"

• be mindful of big company politics: not your startup

5. treat progress reports like public company investors

Intraoreneurs' persuasions

the persuasions

• investors

intrapreneurship and the lean startup

be willing to fail... but

1. take method risks to avoid stagnation

purpose-driven entrepreneurship:

non-profit startup vs. for-profit startups

customers:
- halo effect1: we don't want your money
- halo effect2: our social impact/vision
**
teams:
- no stock options, m&a, ipo //bad
- lower pay
- strong vision/purpose

investors:
- foundation
- philanthropists
- impact funds
- no equity investors

non-profit doesn't mean no profit or revenue

1. you must persuade users and customers
2. you should generate revenues to help sustain the venture
3. you could generate profit that you would

revenue:
Khan: lots of users; some customers

profit:
oxford univ. press: lots of customers
schoolhouse.com

purpose-driven companies: B corp and benefit corp

• Patagonia
• Warby Parker
  customers:
  • //halo effect1: we don't want your money
  • halo effect2: our social impact/vision

teams:
- no stock options, m&a, ipo //bad
- //lower pay
- strong vision/purpose

investors:

• //foundation
• //philanthropists
• social impact investors
• equity investors

a startup's goal

• scale to a big company
• the ultimate goal is to become a large public company

a different list

• top 500 foundations
• have indirect consequences of startup goals but never the direct goal

the giving mission: aspire to a new list

• Forbes 500
• fortune 500
• foundation 500

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