Professional Documents
Culture Documents
• What is an opportunity?
• How do you recognize opportunities?
• How do you screen opportunities
• How are concepts different from ideas?
• What is a business concept?
• Is the business concept worthwhile?
• How do you define a superior
opportunity and concept?
OPPORTUNITY RECOGNITION
An opportunity is not an
idea nor is it a business
concept.
An Opportunity is External
• It is in the environment
• It is a need to be fulfilled
• It is a want to be addressed
• It is a fear to be relieved
• It is time limited
• It is not a technology, service, or
product but an application to
situation
Ideas vs. Concepts
• Ideas are often seeing a need, want or fear
and saying, “Lets meet that”
• Ideas are sometimes a technology hunting
for an application or “opportunity”
• Concepts are when you put a technology
together with the customer and
understand the business and revenue
models that lead to sales.
Thinking About the
Concept
Resources Needed
& Earned
Entrepreneurs Bet
• Motto
• Be risk averse.
• Don’t stretch too much, too
fast
• Know your concept
Opportunity, Ideas & Concepts
• Good ideas are not always good
opportunities nor viable concepts.
• Concepts are built using ideas &
entrepreneurial creativity in real time, take
time & address real problems.
• Opportunities are attractive, durable, timely,
and anchored in a product or service which
creates real value for its buyer and end user.
• Concepts provide Need or Want Satisfaction,
Pain and/or Suffering Relief.
• Opportunities yield measurable net benefits
to the entrepreneur and to society.
Opportunity Recognition
• Social
• Political
• Economic
• Technological
• Demographic
• Global
• Local
The External Environment
Macro-Environment
Industry
Demographics
Economic Environment
Competition
Political/Legal
Technological
Some Important Environmental
Factors
Economic Demographic Socio-Cultural Political/Legal
Conditions Trends Trends Technological
GNP Trends Population Lifestyle Legislation
Growth Changes
Govt. Spending Age Distribution Family Welfare
Formations
Interest Rates Population Health Trends Housing
Shifts
Unemployment Immigration Environmental Agriculture
Levels Concerns
Income Levels Birth Rates Education
Heuristic Model for
Opportunity Identification
PREVISION
Market
Demands
Personal
Attributes
Social
Forces
VISION DEVELOPMENT DECISION
Technology
Personal Evaluate Go ahead or
Experiences
Cultural Quit
Forces Elaborate
Environmental
Forces
Modify
etc.
Alertness Model of
Opportunity Identification
COGNITIVE
PERSON SITUATION OUTCOME
BEHAVIOR
Person Situation No
does not No Ability Maximization Opportunity
have alertness No Gain Funding
Situation
Ability
No Gain
Situation
No Ability
Gain
Situation
Person Ability Optimization Opportunity
has alertness Gain Assessment Funding
Person-Place Framework
for
Opportunity
Right
Person
Identification
(has entre-
preneurial Assessment Break Create Perception
1) Perceptual
alertness) - attend to new info.
Means- New of Viable
- put self in position Ends Frame Opportunity
to get exposure to
Right new info, etc.
Frame
Situation
2) Reasoning
(person has - tolerance of
ability to ambiguity
- interpretation of
grasp and information
has potential -
for gain)
Ideas Versus Concepts
Avoid spending too much time
and money
You may turn out the best product in
the world, but the entire world
needs only have limited
requirements. These are great
ideas, but poor business
opportunities or concepts.
Questions to Answer
• Profitability
• Positive Cash flow
• ROI on Required I
• Investor Demands/Expectations
• Value at exit
• Life style issues
–Personal wants
–Family issues
“Visionary leadership
rather than managerial
skill will be the most
valued standard for
tomorrow’s top officers.”
Lester Korn
Co-Founder -- Korn Ferry
Management Team Issues
• Team, Founder(s)
• Fit with Opportunity
• Track Record
• Gaps in Capabilities & Competencies
• Values and Ethics
• Personal Goals and Objectives
Differentiation Issues
• Technology
• Service
• Team, talent, fit
• Channels of distribution and marketing
• Pricing
• Opportunistic, adaptive
Principles of Opportunity
Seeking
• Systematically analyze all sources
• Go out:
– look,
– ask, & l
– isten
• Keep it simple, stay focused
• Start small (specific)
• Aim for leadership
• Be market focused, be market driven
More Principles of Innovative
Opportunity Seeking
• Don’t:
– Be clever
– Do do too much at once
– Innovate for the future
• Focus on opportunity, not risk
Concept Feasibility
• Compelling Interest
• Customer Opportunities
• Customers
• financial Resources
• Entrepreneurial Team
• Venture Evaluation
Compelling Interest
– Confucius
Customer Opportunities
– Benjamin Disraeli
Customers
– Fred Adler
Entrepreneurial Assessment
– Dr. An Wang
Reality Check
– Old Proverb
Success
– Gustavae Flaubert
SUCCESS CRITERIA
IT IS NOT ONLY MONEY!!!
• Growth
• Profitability
• Technological Innovation
• Market Impact
• Institutionalization of Success
Conclusion
Be Realistic, but
Demand the Possible