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| − | {| class="wikitable"
| + | Criteria for evaluating venture opportunities |
| − | !Criteria
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| − | !Attractiveness
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| − | !
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| − | |-
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| − | !
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| − | !Highest potential
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| − | !Lowest potential
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| − | |-
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| − | |'''Industry and markets'''
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| − | |
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| − | |
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| − | |-
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| − | |
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| − | |Changes way people live and work
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| − | |Incremental improvement only
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| − | |-
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| − | |Market
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| − | |Market driven: identified recurring revenue niche
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| − | |Unfocussed: one time revenue
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| − | |-
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| − | | Customers
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| − | |Reachable; purchase orders
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| − | |Loyal to others and unreachable
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| − | |-
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| − | | User benefits
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| − | |Less than one-year payback
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| − | |Three year+ pay back
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| − | |-
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| − | | Product life
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| − | |Durable
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| − | |Perishable
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| − | |-
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| − | |Markte structure
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| − | |Imperfect, fragmented competition or emerging in industry
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| − | |Highly concentrate or mature
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| − | |-
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| − | |Market size
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| − | |\$100M to \$1B sales potential
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| − | |Unknown, less than \$20M
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| − | |-
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| − | |Growth rate
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| − | |Growth at 30-50% or more
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| − | |Contracting or less than 10%
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| − | |-
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| − | |Market capacity
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| − | |At or near full capacity
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| − | |Under capacity
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| − | |-
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| − | |Market share attainable (<5 year)
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| − | |20% or more; leader
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| − | |Less than 5%
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| − | |-
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| − | |Cost structure
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| − | |Low cost provider, cost advantages
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| − | |Declining costs
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| − | |-
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| − | |'''Economics'''
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| − | |
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| − | |
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| − | |-
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| − | |Time to break even
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| − | |Under 1,5-2 years
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| − | |More than 4 years
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| − | |-
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| − | |ROI potential
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| − | |25% or more
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| − | | Less than 15-20%
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| − | |-
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| − | |Capital requirements
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| − | |Low to moderate, fundable
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| − | |Very high, unfundable
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| − | |-
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| − | |Internal rate of return potential
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| − | |25% or more per year
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| − | |Less than 15% per year
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| − | |-
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| − | |Free cash flow characteristics
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| − | |Favorable, sustainable 20-30% or more of sales
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| − | |Less than 10% of sales
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| − | |-
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| − | |Sales growth
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| − | |Moderate to high (+15% to +20%)
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| − | |Less than 10%
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| − | |-
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| − | |Asset intensity
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| − | |Low/Sales \$
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| − | |High
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| − | |-
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| − | |Spontaneous working capital
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| − | |Low, incremental requirements
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| − | |High requirements
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| − | |-
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| − | |R&D/captial requirements
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| − | |Low
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| − | |High
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| − | |-
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| − | |Gross margins
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| − | |Exceeding 40% and durable
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| − | |Under 20%
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| − | |-
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| − | |After tax profits
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| − | |Great than 10%
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| − | |Low
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| − | |-
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| − | |Time to break even
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| − | |Less than two years
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| − | |Greater than four years
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| − | |-
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| − | |'''Harvast issues'''
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| − | |
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| − | |
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| − | |-
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| − | |Value added potential
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| − | |High strategic value
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| − | |Low strategic value
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| − | |-
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| − | |Valuation multiples and comparable
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| − | |20X PE/E
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| − | |<=5XP/E
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| − | |-
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| − | |
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| − | |8-10XEBIT
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| − | |3-4XEBIT
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| − | |-
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| − | |
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| − | |1.5 -2 X revenue
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| − | |<= 0.4Xrevenue
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| − | |-
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| − | |
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| − | |8-10Xfree cash flow
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| − | |-
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| − | |Exit mechanism and strategy
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| − | |Present or envisioned options
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| − | |Undefined; illiquid investments
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| − | |-
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| − | |Capital market context
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| − | |Favorable valuations; timing, capital available, realizable liquidity
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| − | |Unfavorable, credit crunch
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| − | |-
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| − | |'''Competative Advantage Issues'''
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| − | |
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| − | |
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| − | |-
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| − | |Fixed and variable costs
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| − | |Lowest
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| − | |Highest
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| − | |-
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| − | |Control over costs, prices and distribution
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| − | |Moderate
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| − | |Weak
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| − | |-
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| − | |Barriers to entry
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| − | |
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| − | |-
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| − | | Propretary protection
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| − | |Have or can gain
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| − | |None
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| − | |-
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| − | | Response/lead time
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| − | |Competition slow, napping
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| − | |Unable to gain edge
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| − | |-
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| − | | Legal, contractual advantage
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| − | |Proprietary or exclusivity
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| − | |None
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| − | |-
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| − | | Contracts and networks
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| − | |Well-developed; accessible
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| − | |Crude
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| − | |-
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| − | | Key people
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| − | |Top talent; an A team
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| − | |B or C team
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| − | |-
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| − | |'''Management team'''
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| − | |
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| − | |
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| − | |-
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| − | |Entrepreneurial team
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| − | |All-star combiation; free agents
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| − | |Weak solo entrepreneur
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| − | |-
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| − | |Industry and technical experience
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| − | |Top of the field; super track-record
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| − | |Underdeveloped
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| − | |-
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| − | |Integrity
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| − | |Highest standards
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| − | |Questionable
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| − | |-
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| − | |Intellectual honesty
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| − | |Know what they don't know
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| − | |Do not want to know what they don't know
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| − | |-
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| − | |'''Personal criteria'''
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| − | |
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| − | |
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| − | |-
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| − | |Goals and fit
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| − | |Getting what you want but wanting what you get
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| − | |Suprises
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| − | |-
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| − | |Upside / downside issues
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| − | |Attainable success / limitted risk
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| − | |Linear, on the same continuum
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| − | |-
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| − | |Opportunity costs
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| − | |Acceptable cuts in salary etc
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| − | |Comfortable with status quo
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| − | |-
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| − | |Desirability
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| − | |Fits with lifestyle
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| − | |SImply pursuing big money
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| − | |-
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| − | |Stress tolerance
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| − | |Thrives under pressure
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| − | |Cracks under pressure
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| − | |-
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| − | |'''Strategic differentiation'''
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| − | |
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| − | |
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| − | |-
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| − | |Degree of fit
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| − | |High
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| − | |Low
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| − | |-
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| − | |Team
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| − | |Best in class
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| − | |B team
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| − | |-
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| − | |Service management
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| − | |Supervisor service concept
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| − | |Perceived as unimportant
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| − | |-
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| − | |Timing
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| − | |Rowing with the tide
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| − | |Rowing against the tide
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| − | |-
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| − | |Technology
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| − | |Groundbreaking
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| − | |Many substitutes
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| − | |-
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| − | |Flexibility
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| − | |Able to adept
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| − | |Slow stubborn
| |
| − | |-
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| − | |Opportunity orientation
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| − | |Always searching
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| − | |Operating in a vacuum
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| − | |-
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| − | |Pricing
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| − | |At or near leader
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| − | |Undercut competitor
| |
| − | |-
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| − | |Distribution channels
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| − | |Accessible
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| − | |Unknown
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| − | |-
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| − | |}
| |
| − | | |
| − | Part of: [[M10-S1 - Reading - Opportunity Recognition- Jeff Timmons|M10-S1 - Reading - Opportunity Recognition- Jeff Timmons]]
| |
| | [[Category:mbi]] | | [[Category:mbi]] |
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