M3-S3 - Session notes - Revision history

Dirkjan at 19:58, 27 August 2020

2020-08-27T19:58:01Z

Dirkjan: Replaced content with "M3-S3 - Session notes Category:mbi"

2020-08-27T19:19:31Z

Replaced content with "M3-S3 - Session notes Category:mbi"

Dirkjan: Created page with "Ideas are not the same as opportunities: * Opportunities are presishable ** Ideas last forever * Window of opportunity depends on: ** Technology, Demographics, Competitors, Co..."

2020-08-25T08:01:58Z

Created page with "Ideas are not the same as opportunities: * Opportunities are presishable ** Ideas last forever * Window of opportunity depends on: ** Technology, Demographics, Competitors, Co..."

New page

Ideas are not the same as opportunities:
* Opportunities are presishable
** Ideas last forever
* Window of opportunity depends on:
** Technology, Demographics, Competitors, Consumers
* Ideas are free
** Opportinities require work

The opportunity
Step 1:
* Large and growing market
* Structurally attractive industry
Step 2: Show how the venture can launch the opportunities: see the nine questions:
# Who is the new ventures customer?
# How does the customer make decissions about buying this product or service?
# '''To what degree is the product a compelling purchase for the customer?'''
** A 'prototype' or 'vision' of a product may result to a favorable response but this quit different than paying for the real thing.
** Do not really 'trust' a favorable response. Ask questions like:
*** What money will you save using our product?
*** Where would you go without our product
*** Also see: [[M3-S3 - Reading - Coyne, K.P. Sustainable Competitive Advantage|M3-S3 - Reading - Coyne, K.P. Sustainable Competitive Advantage]]
*** A [[Sustainable Competitive Advantage|Sustainable Competitive Advantage]] is the best predictor for business success
# How will the product be priced?
# How will the venture reach all customer segments?
# How much does it cost (in time and resources) to acquire a customer?
# How much does it cost to produce and deliver the product or service?
# How much does it cost to support a customer?
# How easy is it to retain a customer?
Step 3: Cash flow implications of pursuing the opportunities
Step 4: Map business beyond initial opportunity / product
Step 5: Competition
Step 6: Explain how the above will be influenced by changes in the context & how the business will mitigat, exploit those
Step 7: Convince sceptical audiance of the above

'''Hazards of opportunity exploitation'''
# Accepting "yes" at face value
# Financial projections which are not adequately built upon [[Bottom up forecast|Bottom up forecast]] evidence

Risk and reward:
* "True entreprenuers want to capture all the reward and give all the risk to others"
* "The best business is a post office to which people send casier checks"

Questions:
# Is there anything i can do to move my business closer to Sahlman's best business
# Are we taking ANY avoidable risks and if so why?
# Where do the owners endgames come in my priority list?

Visualizing the risk:
* Plot probability on y-axs
* Plot gain on x-axis
** -100% (loose everything)
** -50%
** +0%
** +10%
** +50%
** +100%
** +200%

'''People'''
* Which personal question really count:
** What are the motivations
** How committed in this venture?
** Are they prepared to hire high quality people?

Both expierence and skills are necessary:
* Genuine intrensic interest is critical
* Interest is the oxygen of comittment: sustaining you through thick and thin
* Being interested in money making potential of the opportunity is not the same thing as finding the business exiting

People conundrum:
* Past track record isn't a guarantee of future sucess or failure
* Every great entrepeneurs first success had no precendent
* Experience shapes the perception of opportunities removing some blind spots and introducing others
* Who are these people anyway vs "forget the proven team"
* Timing, time, test, terms
[[Category:mbi]]

← Older revision		Revision as of 19:19, 27 August 2020
Line 1:		Line 1:
−	~~Ideas are not the same as opportunities:~~	+	M3-S3 - Session notes
−	* Opportunities are presishable
−	** Ideas last forever
−	* Window of opportunity depends on:
−	** Technology, Demographics, Competitors, Consumers
−	* Ideas are free
−	** Opportinities require work
−
−	~~The opportunity~~
−	~~Step 1:~~
−	* Large and growing market
−	* Structurally attractive industry
−	~~Step 2: Show how the venture can launch the opportunities: see the nine questions:~~
−	~~# Who is the new ventures customer?~~
−	~~# How does the customer make decissions about buying this product or service?~~
−	~~# '''To what degree is the product a compelling purchase for the customer?'''~~
−	** A 'prototype' or 'vision' of a product may result to a favorable response but this quit different than paying for the real thing.
−	** Do not really 'trust' a favorable response. Ask questions like:
−	*** What money will you save using our product?
−	*** Where would you go without our product
−	*** Also see: [[M3-S3 - ~~Reading - Coyne, K.P. Sustainable Competitive Advantage\|M3-S3 - Reading - Coyne, K.P. Sustainable Competitive Advantage]]~~
−	*** A [[Sustainable Competitive Advantage\|Sustainable Competitive Advantage]] is the best predictor for business success
−	~~# How will the product be priced?~~
−	~~# How will the venture reach all customer segments?~~
−	~~# How much does it cost (in time and resources) to acquire a customer?~~
−	~~# How much does it cost to produce and deliver the product or service?~~
−	~~# How much does it cost to support a customer?~~
−	~~# How easy is it to retain a customer?~~
−	~~Step 3: Cash flow implications of pursuing the opportunities~~
−	~~Step 4: Map business beyond initial opportunity / product~~
−	~~Step 5: Competition~~
−	~~Step 6: Explain how the above will be influenced by changes in the context & how the business will mitigat, exploit those~~
−	~~Step 7: Convince sceptical audiance of the above~~
−
−	~~'''Hazards of opportunity exploitation'''~~
−	~~# Accepting "yes" at face value~~
−	~~# Financial projections which are not adequately built upon [[Bottom up forecast\|Bottom up forecast]] evidence~~
−
−	~~Risk and reward:~~
−	* "True entreprenuers want to capture all the reward and give all the risk to others"
−	* "The best business is a post office to which people send casier checks"
−
−	~~Questions:~~
−	~~# Is there anything i can do to move my business closer to Sahlman's best business~~
−	~~# Are we taking ANY avoidable risks and if so why?~~
−	~~# Where do the owners endgames come in my priority list?~~
−
−	~~Visualizing the risk:~~
−	* Plot probability on y-axs
−	* Plot gain on x-axis
−	** -100% (loose everything)
−	** -50%
−	** +0%
−	** +10%
−	** +50%
−	** +100%
−	** +200%
−
−	~~'''People'''~~
−	* Which personal question really count:
−	** What are the motivations
−	** How committed in this venture?
−	** Are they prepared to hire high quality people?
−
−	~~Both expierence and skills are necessary:~~
−	* Genuine intrensic interest is critical
−	* Interest is the oxygen of comittment: sustaining you through thick and thin
−	* Being interested in money making potential of the opportunity is not the same thing as finding the business exiting
−
−	~~People conundrum:~~
−	* Past track record isn't a guarantee of future sucess or failure
−	* Every great entrepeneurs first success had no precendent
−	* Experience shapes the perception of opportunities removing some blind spots and introducing others
−	* Who are these people anyway vs "forget the proven team"
−	* Timing, time, test, terms
	[[Category:mbi]]		[[Category:mbi]]

← Older revision		Revision as of 19:58, 27 August 2020
Line 1:		Line 1:
−	M3-S3 - ~~Session notes~~	+	Ideas are not the same as opportunities:
		+	* Opportunities are presishable
		+	** Ideas last forever
		+	* Window of opportunity depends on:
		+	** Technology, Demographics, Competitors, Consumers
		+	* Ideas are free
		+	** Opportinities require work
		+
		+	The opportunity
		+	Step 1:
		+	* Large and growing market
		+	* Structurally attractive industry
		+	Step 2: Show how the venture can launch the opportunities: see the nine questions:
		+	# Who is the new ventures customer?
		+	# How does the customer make decissions about buying this product or service?
		+	# '''To what degree is the product a compelling purchase for the customer?'''
		+	** A 'prototype' or 'vision' of a product may result to a favorable response but this quit different than paying for the real thing.
		+	** Do not really 'trust' a favorable response. Ask questions like:
		+	*** What money will you save using our product?
		+	*** Where would you go without our product
		+	*** Also see: [[M3-S3 - Reading - Coyne, K.P. Sustainable Competitive Advantage\|M3-S3 - Reading - Coyne, K.P. Sustainable Competitive Advantage]]
		+	*** A [[Sustainable Competitive Advantage\|Sustainable Competitive Advantage]] is the best predictor for business success
		+	# How will the product be priced?
		+	# How will the venture reach all customer segments?
		+	# How much does it cost (in time and resources) to acquire a customer?
		+	# How much does it cost to produce and deliver the product or service?
		+	# How much does it cost to support a customer?
		+	# How easy is it to retain a customer?
		+	Step 3: Cash flow implications of pursuing the opportunities
		+	Step 4: Map business beyond initial opportunity / product
		+	Step 5: Competition
		+	Step 6: Explain how the above will be influenced by changes in the context & how the business will mitigat, exploit those
		+	Step 7: Convince sceptical audiance of the above
		+
		+	'''Hazards of opportunity exploitation'''
		+	# Accepting "yes" at face value
		+	# Financial projections which are not adequately built upon [[Bottom up forecast\|Bottom up forecast]] evidence
		+
		+	Risk and reward:
		+	* "True entreprenuers want to capture all the reward and give all the risk to others"
		+	* "The best business is a post office to which people send casier checks"
		+
		+	Questions:
		+	# Is there anything i can do to move my business closer to Sahlman's best business
		+	# Are we taking ANY avoidable risks and if so why?
		+	# Where do the owners endgames come in my priority list?
		+
		+	Visualizing the risk:
		+	* Plot probability on y-axs
		+	* Plot gain on x-axis
		+	** -100% (loose everything)
		+	** -50%
		+	** +0%
		+	** +10%
		+	** +50%
		+	** +100%
		+	** +200%
		+
		+	'''People'''
		+	* Which personal question really count:
		+	** What are the motivations
		+	** How committed in this venture?
		+	** Are they prepared to hire high quality people?
		+
		+	Both expierence and skills are necessary:
		+	* Genuine intrensic interest is critical
		+	* Interest is the oxygen of comittment: sustaining you through thick and thin
		+	* Being interested in money making potential of the opportunity is not the same thing as finding the business exiting
		+
		+	People conundrum:
		+	* Past track record isn't a guarantee of future sucess or failure
		+	* Every great entrepeneurs first success had no precendent
		+	* Experience shapes the perception of opportunities removing some blind spots and introducing others
		+	* Who are these people anyway vs "forget the proven team"
		+	* Timing, time, test, terms
	[[Category:mbi]]		[[Category:mbi]]