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