BREWERS AS ENTREPRENEURS

Beverage Business Institute, College of Business

Vocation: “It is the place where your great joy meets the world’s great need.”

Entrepreneurs Defined

Entrepreneurs are generally defined as individuals who create a business venture with the goal of making a profit.

Entrepreneurs are therefore assumed to be: Visionaries with clear missions Business & bottom line oriented Effective leaders Creative/Innovative Independent Thought leaders/knowledge experts NOT SO MUCH

Characteristics of Entrepreneurs What we know about entrepreneurs: High in N-Ach Low in N-Aff Independent Resilient Creative Not easily managed Don’t always play nice with others Passionate/driven

Brewers and Entrepreneurship Does a brewer have to create a business

to be an entrepreneur? No, entrepreneurship takes many forms There is no such thing as an “Intrapreneur”

Can “employees” be entrepreneurs? Yes, new products & business ventures

involve risk & rewards Only difference may be resource availability

and work parameters

Brewers and Entrepreneurship First mover

One does not have to be an inventor to be innovative

Being first to market has a number of advantages IF there is the business infrastructure to support the penetration of the target market

Early adopter A strategy utilized by those having a larger

presence within a target market Can come in after product acceptance and “flood”

the market driving smaller competitors into a retreat position

Brewers and Entrepreneurship Perceived role of brewers

Artist? May not care what others think

Scientist/chemist? Quality and process sometimes outweigh

business considerations Alchemist?

Strange and wonderful blends that may have no market

Business person? May be too mainstream & too low risk for a “big

hit”

Brewers and Entrepreneurship Orientation of brewer may determine

success as an entrepreneur A pragmatic combo appears to be the

most effective Reliance upon “team” becomes important

May be counter-intuitive for most but still critical

Timing of development, roll out, and market penetration is heavily dependent upon brewers and the “approach” May depend upon whether the brewery

is a first mover or early adopter

Characteristics of Managers vs. Entrepreneurs

An organization “local”

Risk averse Strict adherence

to rules and structure (bureaucratic)

Bottom line focus

A cosmopolitan Risk “tolerant” A boundary

spanner

The business version of ADD

Managers Entrepreneurs

Characteristics of Managers vs. Entrepreneurs

Facts & data drive decisions

Closely tracks results

Gate keeper

Intuitive decision maker

High tolerance for ambiguity

Doesn’t recognize any “gates”

Managers Entrepreneurs

Characteristics of Managers vs. Entrepreneurs

Meets customers’ needs

Responds to directions

“Rides herd to gain “obedience”

Creates customers’ needs

Does not respond well to directions

Has been lost from the herd

Managers Entrepreneurs

Characteristics of Managers and Entrepreneurs

Satisficing decisions Specific work

parameters (time, place, resources, etc)

Pragmatic decisions based upon resource allocation

Optimizing decisions Flexible work

parameters (do what it takes to “get er done”)

Experimentation (trial & error may dominate)

Managers Entrepreneurs

Ironically the identifiable age-related personality changes among managers are those with which most entrepreneurs are imbued at an earlier age.

Those things that attract certain personalities to creative and independently driven vocations are similar to those factors motivating entrepreneurs.

Personality and Entrepreneurs

Cautionary notes

Being creative/innovative does not always translate into entrepreneurial success

The need for independence does not equate to entrepreneurial success

Having great, unique products does not always mean a successful business venture

HOWEVER, if all of the above are combined with business acumen the odds are improved dramatically

Business reminders

Identify and try to understand the barriers to entry 142 breweries in Colorado with over 75 in planning

Know your market and targets When is it saturated?

Know your products and where they fit Demographics/target markets

Pay attention to competition but be true to your vision

Be willing to take calculated risks but know when to make changes- FOCUS on RESULTS