Lecture 2 - Idea Identification

2,743 views 101 slides Oct 02, 2011
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About This Presentation

Lecture 2 of the New Venture Creation series


Slide Content

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Idea%Identification%
Will2Your2Business2Idea2Fly?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
“There2is2nothing2more2
powerful2than2an2IDEA2whose2
time2has2come.”2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
We2all2know2this2phrase2in2respect2
to2politics2and2social2change,2but2
have2you2ever2thought2about2it2
from2the2business2point2of2view?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Ideas2are2the2basis2of2the2new2
digital2and2knowledge2based2
economies.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
For2decades,2business2ideas2
required2huge2capital2investment2
to2setup2factories,2distribution2and2
sales2engines.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Now,2the2best2ideas2can2be2
implemented2with232–242driven2
individuals.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
But2the2idea2must2be2the2right2
idea…2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Three%Types%of%Ideas%
Useless,2Workable2and2Quick2Hit2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Useless2Ideas2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
A2Useless2Idea2is2something2that2is2
dreamed2up2but2the2entrepreneur2
has2no2personal2understanding2or2
experience2in2the2business2they2are2
proposing.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
When2you2don’t2have2the2
experience2to2back2up2the2idea,2
you2are2dependent2on2other2
people2to2make2it2successful2and2
personally2have2no2buy,in2with2the2
venture2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
That2makes2you2–2replaceable2–2
and2that2is2not2a2viable2idea2for2a2
venture2capitalist,2angel2investor2or2
bank.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
VCs,2Angels2and2banks2only2invest2
into2ideas2where2the2person2sitting2
in2front2of2them2has2a2personal2
buy,in2with2the2venture2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
They2are2either2the2vision2that2
drives2the2organization,2the2force2
that2runs2it2or2the2intelligence2that2
builds2it2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The2world2is2full2of2idea2men,2very2
few2of2them2can2deliver2on2their2
ideas.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Examples2of2a2Useless2Idea2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
A2farmer2starting2a2manufacturing2
plant2that2produces2auto2parts2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
An2MBA2starting2a2game2
development2house2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
A2plumber2starting2an2electrical2
business.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
I2think2you2get2the2idea2–2if2you2
don’t2have2any2real,2measurable2
experience2in2the2industry2that2you2
want2to2start2–2you2have2the2wrong2
idea.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Workable2Ideas2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
A2Workable2Idea2is2something2that2
will2take2time2and2effort2to2develop2
but2will2be2profitable2once2stable.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
These2ideas2are2the2basis2of2the2
knowledge2economy2because2they2
will2continue2to2grow2and2develop2
as2the2venture2grows2–2in2other2
words,2they2don’t2stagnate2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
VCs,2Angels2and2banks2love2these2
types2of2ventures2because2they2are2
able2to2invest2into2the2initial2start,
up2and2reap2their2returns2during2
the2growth2stage2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Allowing2them2to2cash2out2–2or2
capitalize2–2when2the2venture2is2
mature2with2very2high2returns2on2
their2investments.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Software2Development2Companies2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Consulting2Firms2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Research2Houses2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Technology2Planners2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
These2are2all2ventures2that2take2
time2to2build2and2become2
successful,2but2will2continue2to2
expand2and2develop2over2time2
increasing2their2product/service2
offering2with2each2expansion.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Quick2Hit2Ideas2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
A2Quick2Hit2Idea2is2one2that2will2
generate2revenue2from2day212of2
operations.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
These2ventures2are2typically2called2
quick2hit2ideas2because2they2return2
the2investment2immediately2but2
the2returns2are2minimal2at2best.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Experience2doesn’t2matter2because2
you2are2only2looking2to2capitalize2
on2a2temporary2need2in2the2market2
and2know2that2you2will2be2“out2of2
business”2once2the2need2
disappears.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Quick2hit2ventures2are2also2low,
experience,2low2intelligence2
businesses2–2and2I2don’t2mean2that2
to2be2rude.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Take2for2example,2your2local2
general2store2–2what2does2he2offer2
that2the2general2store2next2door2or2
down2the2street2doesn’t?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
In2other2words,2the2revenue2
generation2of2this2idea2is2limited2
until2someone2opens2another2store2
in2the2area2that2cuts2into2their2
limited2customer2base.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
So2now2that2we2have2identified2the2
different2idea2types2–2how2do2we2
judge2our2own2ideas?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Idea%Proofing%
Determining2If2Your2Idea2Will2Last2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
People2will2give2you2a2lot2of2ways2
to2judge2your2idea,2but2most2of2
them2are2not2useful2from2the2point2
of2view2of2“idea2proofing.”2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
What2is2Idea2Proofing?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Idea2Proofing2is2something2we2do2
at2emagine2to2determine2whether2
an2idea2is2viable2and2feasible2or2not.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
It2is2not2difficult,2but2it2requires2
removing2the2emotion,2excitement2
and2passion2of2the2entrepreneur2
from2the2equation.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Ideas2can2not2be2judged2based2on2
what2the2entrepreneur2says,2but2
how2it2looks2on2paper2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
So2what2are2we2looking2for?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Does2it2solve2compelling2
unserved2need?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Every2entrepreneur2thinks2they2
have2the2million2dollar2idea,2but2
deciding2if2it2really2is2starts2with2
this2question2–2what2need2does2it2
solve?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Ask2people2if2the2need2you2see2is2
really2a2need.2Society2is2the2best2
judge2of2the2idea2because2they2are2
your2future2customers.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
But2here’s2the2trick,2you2can’t2
explain2the2business2idea2to2them2–2
only2the2end2result2product/service2
you2will2provide2them.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
If2they2can’t2see2it2from2that,2your2
idea2is2not2going2to2work2without2a2
lot2of2work,2education2and2
marketing2–2all2of2which2means2the2
need2is2not2really2there.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
How2much2money2will2you2need2
and2how2will2you2use2it?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
This2is2a2big2question2because2
capital2is2what2makes2businesses2
run2and2grow.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
If2you2need2too2much2capital2or2
can’t2explain2how2the2capital2will2
be2used2to2build2the2business,2
attract2the2customer2or2grow2it,2
your2idea2may2not2be2the2right2one.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
What2are2you2offering2and2how2
does2it2work?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Exactly2what2product/service2are2
you2offering2and2how2will2it2work?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
You2must2be2clear2with2this2
definition2because2if2you2are2not2
clear,2how2do2you2expect2anyone2
else2to2understand2it?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
We2have2talked2to2people2with2
great2ideas2and2what2could2be2
outstanding2products,2but2they2are2
unable2to2explain2their2product/
solution2in2simple2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Our2test2–2if2you2can’t2explain2the2
product/service2in2152words2or2less,2
you2are2not2clear.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
More2importantly,2if2it2takes2more2
than222minutes2to2explain2how2to2
use2it2–2it’s2game2over.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Customers2don’t2read2manuals,2
instruction2booklets2or2websites2–2
they2either2understand2how2to2use2
it2or2call2you.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Who2exactly2is2your2customer?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The2answer2to2this2question2is2not2
everyone2–2no2product2or2service2
has2ever2been2designed2for2
everyone’s2use.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
You2need2to2be2able2to2define2who2
will2buy2your2product/service.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
B2B,2B2C,2B2G,2Fortune2500,2SME,2
NGO,2Men,2Women,2Housewives,2
Bachelors,2Students,2Athletes….2
And2the2list2goes2on2and2on….2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Another2question2you2have2to2
answer2with2this2question2is2–2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Is2there2a2specific2situation2that2
will2drive2the2purchase2or2use2of2
my2product/service?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The2more2precise2you2are,2the2
better2you2idea2proof2your2idea.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
How2will2you2provide2your2
product/service?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
One2of2the2biggest2questions2is2
HOW2you2plan2to2win2customers2–2
what2is2your2strategy2for2product/
service2delivery?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Do2they2need2to2come2to2your2
office2or2shop2to2buy?2Will2you2go2
to2them?2Can2it2be2bought2and2
installed2online?2What2hours2will2
you2keep?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Who2is2involved2in2your2
venture’s2success?2Who2are2the2
stakeholders?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Every2entrepreneur2would2like2to2
believe2that2they2can2do2everything2
–2we2are2all2Superman2when2it2
comes2to2our2ideas,2but2that2is2not2
possible.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Of2course,2the2entrepreneur2must2
have2a2strong2foundation2of2
experience2and2stability2in2their2
professional2life,2but2who2are2the2
other2key2resources?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The2first2way2to2destroy2your2
business2is2to2hire2friends2because2
they2are2friends2and2you2like2to2
hang2out2together2–2hanging2out2is2
very2different2than2working2
together.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Business2relationships2are2very2
stressful2and2can2destroy2
friendships,2especially2if2you2have2
to2fire2a2friend…2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
But2does2that2mean2you2don’t2
hire2friends?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Of2course2not2–2it2just2means2that2
you2must2be2very2clear2about2the2
skill2set2and2abilities2of2your2friend2
before2hiring2them2–2this2is2
business.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Who2will2be2your2competition?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Ideas2are2great2things,2but2you2
have2to2look2at2the2whole2
environment2before2deciding2if2the2
idea2is2viable2or2not.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Competitors2go2a2long2way2to2
helping2you2understand2if2your2idea2
can2succeed2or2not.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
There2are2no2businesses2that2have2
no2competition2–2that2idea2only2
exists2inside2an2entrepreneur’s2
head.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
If2there2are2a2great2deal2of2
companies,2you2will2only2get2a2
limited2share2of2the2existing2pie.2If2
there2are2few2competitors,2you2
need2to2understand2why.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Talk2about2your2competitors,2
understand2them,2figure2out2how2
your2business2will2be2better2and2
how2you2will2beat2them2–2
otherwise2get2ready2to2fail.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
What2makes2your2venture2
special?2What2makes2you2
different?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Startups2are2risky2for2investors,2so2
they2want2to2know2what2will2make2
you2successful2compared2to2
everyone2else.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Does2your2business2have2a2unique2
skill2set2or2knowledge?2Proprietary2
methods?2Unique2brands2that2
aren’t2available2anywhere2else?2
Innovative2technologies?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The2thing2that2makes2you2different2
will2usually2make2you2successful2
because2it2changes2the2way2the2
consumer2does2something2–2or2
what2we2call2revolutionizes2service2
delivery.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
These2are2all2questions2that2we2ask2
when2we2idea2proof2a2venture2
before2investing2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Anywhere,2we2have2hesitation2will2
cause2us,2and2any2other2VC,2to2stop2
and2think2–2even2if2it2is2days2before2
the2check2is2written.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
VCs2have2to2be2sure2before2they2
release2the2money2to2the2
entrepreneur2because2getting2it2
back2is2very2difficult.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
We2also2use2a2Buyer2Utility2Map2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
This262x262table2is2one2of2the2best2
tools2we2have2for2determining2if2an2
idea2will2be2successful2or2not.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
Why2is2this2a2great2tool?2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The2Buyer2Utility2Table2forces2you2
to2look2at2your2business2idea2from2
the2view2of2the2consumer2to2
determine2whether2the2idea2will2
work2or2not.2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
So2let’s2look2at2both2sides2of2the2
table2

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The$Six$Stages$of$Buyer$Experience$
Purchase) How)&)where)do)they)get)it?))
Delivery) Can)it)be)delivered)to)their)home)or)office?)
Use) How)do)they)use)it?)
Supplements)Does)it)require)any)special)or)addi@onal)items)to)use?)
Maintenance)How)oBen)will)it)need)to)be)serviced)or)checked?)
Disposal) What)does)the)consumer)do)with)it)when)they)are)done?)

http://emagine,group.com2 Brand2Focused,2Socially2Active,2Digitally2Enabled2
The$Six$U7lity$Levers$
Environmental)
Friendliness)
In)today’s)world,)everyone)is)environment)friendly)–)is)your)product?)
Fun)&)Image)Does)it)improve)the)consumer’s)image)or)give)them)more)enjoyment?)
Risk) Is)there)any)risk)involved)with)product/service)usage?)
Convenience)How)easy)is)it)to)carry)and)store?)
Simplicity)How)easy)is)it)to)use?)
Customer)
Produc@vity)
Does)it)improve)their)produc@vity)in)any)part)of)their)lives?)

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