e e m

a d
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a r u
ENTREPRENEURSHIP

Y
Introduction to Entrepreneurship

YARUQ NADEEM
PURE FIX CYCLES
• In 2010, Zach Schau started looking

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for a bike

a
• Problem: Price of bike ($1,000)

N
exceeded his budget

q
• Need for an affordable, stylish and

u
durable bike for daily commute

a r
• Solution: Build a fixed-gear, single

Y
speed bike or “fixie” ($325)
• Came up with “cool” design and
placed order* of 165 bikes
• Sold Out over winter break
PURE FIX CYCLES
• Won $7,000 at a business plan

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d
competition

a
• Second batch Sold Out with two

N
weeks*

q
• Introduced different innovative

u
categories of bikes

a r
• In 2012, accepted investor funding

Y
and hired former senior executive
as company’s president
• The founding team remains
passionate and continues to
innovate and build Pure Fix brand
 e e m
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Why do people become

r u q
Entrepreneurs?

Ya
Why do people become Entrepreneurs?

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Be Their Own Boss

a
• Long-time ambition to own a firm

N
• Have become frustrated working in traditional jobs

q
Pursue Their Own Ideas

u
• Desire to see their ideas realized

r
• Ideas go unfulfilled if established firms resist innovation by employees

a
• Recognize need for product or service through a hobby or leisure activity

Y
Pursue Financial Rewards
• Typically secondary to the first two
• Average entrepreneur does not make much more than a traditional job*
Characteristics of Successful Entrepreneurs?

e e m
a d
q N
a r u
Y
 e e m
a d
q N
a r u
Y
 e e m
a d
q N
a r u
Y
 e e m
a d
q N
a r u
Y
 e e m
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q N
a r u
Y
 e e m
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N
However, need to make money in

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order to be financially sustainable!

Y a
Financial Sustainability

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d
Things to keep in mind:

N a
• These are only basic ways to think about financial

q
sustainability

u
• Applicable only in the case of long-term

a r
sustainability

Y
• Does not account for upfront investments such as:
o Money spent to get the Company Started
o Product Development Costs/Building Product Initially
o Manufacturing expense associated with making moulds
and tools in order to create the product
BELLE-V (Bottle Opener)

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d
Luxury item sold mainly in

a
museums in the United States!

• Price= $50 per unit

q N
r u
• Cost= $20 per unit

Y a
Financial Sustainability
Making and Selling something

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q N
a r u
Y
GRIDIUM
Lets assume the

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following:

• Services Purchased

Na
q
(Per month) = $250

r u
• Duration of

a
engagement

Y
(Months) = 20
Financial Sustainability
On-going Services

e e m
a d
q N
a r u
Y
 e e m
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N
THE END
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Y