Bryan Cassady and Koen Stevens explain the importance of spending a great deal of time on idea formation, because many startups are doomed by weak initial ideas and limited scope. They state that this is the reason so many startups fail, and that truly unique and problem-solving ideas are necessary to forge a great company. This content was produced for the 2014 Brussels Fall semester of the Founder Institute by Founder Institute Brussels Director Bryan Cassady, Global Marketing Director at IBA with Founder Institute mentor Koen Stevens, Founder of BuboBox. Follow them on Twitter to learn more: https://twitter.com/bryancassady https://twitter.com/brusselsfi https://twitter.com/e_kon

1. Welcome
Evaluating business ideas

2. Agenda
• Introduction
• Shooting Puppies
– Bryan Cassady– Brussels Director Founder Institute
• Getting to big ideas… and some thoughts on market
research
– Koen Stevens - Director BuboBox
• BREAK (10 min)
• Your turn to evaluate some business ideas
• Joining The Founder Institute program

3. The Program
Idea Business Launch
1. Orientation
2. Vision
3. Research
4. Revenue
5. Naming
6. Mentor Idea Review
7. Startup Legal
8. Team
9. Product
10. Mentor Progress Review
11. Sales
12. Branding
13. Fundraising
14. Graduation

4. By focusing hard on ideas first
70% of graduates succeed and
45% get funded

5. Let’s be honest ….
Most start ups have ideas only a
mother could love !

6. The biggest 3 mistakes of Entrepreneurs
1. Investing in the wrong business
2. Staying too long in the wrong business.. (after you
should know it is time to change…)
3. People don’t buy your product or service ‘cause they
understand why they should…

7. I will see it when I believe it
vs.
I will believe it when I see it
Too much research is the first type

8. An example: global warming
Hot summers
Warm winters
Evidence of
global warming
Cold summers
Cold winters
Evidence of
global warming
Clearly there is evidence of global warming ?!

9. 9
Solutions …
Issues
• We often do research to check
our brilliant ideas
• SUGGING (Selling under the guise
of market research)
Solutions
• Objective criteria in place before
the research starts
– Is 35% planned purchase good or
bad
• Clearly define your biases before
you start
• Focus on insight (vs.
confirmation)
• Do regular reality checks

10. You’re not alone !
‘‘More than nine out of ten consumable products
launched in the last ten years offered absolutely
nothing new to the consumer.
More than eight out of ten new products fail. You
don’t need to be a statistician to realize there’s a
correlation between the two numbers.’’
-- Robert McMath

11. Arguing the other direction…
Why is this a bad idea…
If it fails, why will it fail…
And then deciding what can
be done about it…

12. A checklist for ideas…
• Is there a benefit (real or perceived)
• People willing to pay (enough)
• Cost of cut-through acceptable
• People will see the benefit buy again / recommend
to others
• Will someone hate it

13. 13
Pets.com
Pet supplies via the
internet
Save big, save time
Stay at home

14. 14

15. Kosmo.com
Instant delivery of
products purchased
via the internet in big
cities
Order a wide variety
of products, from
movies to snack
food, and get them
delivered to your
door for
free within an hour.

16. 16
Despair.com
We hate all the senseless, wasted time on employee motivation and un-
founded optimism
We imagine you do to, buy our products and show your true colors

17. 17
Continuous effort is the key to unlocking your potential
Winston Churchill

18. 18

19. Etoys.com
The new place to
buy toys. Find you
want on the
internet

20. 20

21. 21
Petrock.com
Pets take a lot of
time and energy.
Your kids can have
almost as much fun
with a pet rock.
We even include a
care guide

22. 22

23. 23

24. 24
Webvan.com
Buying groceries should be
easier. With webvan you
can get all your groceries,
so you have time for other
things

25. 25

26. Now the most important question
Why would this business fail …
Why would it fail …
Pets.com
Kosmo
Despair.com
Etoys.com
Petrock.com
Flooz
Webvan

27. 27

28. Costs per stage
Ideas, screening
Concept, analysis
Prod.
devel
Test
mktg
commercialization
The time to
Make mistakes !
Budget
Time

29. Can you ask the experts ???
“I think there’s a world market for about five
computers.” (President of IBM, 1943)
“TV won’t be able to hold on to any market it
captures after the first six months. People will soon
get tired of staring at a plywood box every night.”
(President of 20th Century Fox, 1946)

30. 30
Should consumers be followed or
led ?
Mobile phone
Computers
Internet…

31. Not all new products are
revolutions !
There are many holes in the
markets, but fewer markets in
the holes ..

32. Better is not always better
Fat Bastard is priced higher,
tastes less good but outsells
Bilton 10 to 1…

33. A checklist …
• Talk to 20 people (that are not your friends)
• If no one hates the idea, be scared
• Ask people “if this fails” why would it fail (you’ll get a
lot more information than asking what they think of
the idea !)
• Keep it simple … check do people really understand

34. Koen’s Presentation

35. A new experiment
7 pitches
Your challenge… pick the 3
winners

36. 1. Breathometer
2. Onesole
3. Lollacup
4. Coffee Cups
5. First Defense
6. Kevo
7. Beddies

44. 1. Breathometer
2. Onesole
3. Lollacup
4. Coffee Cups
5. First Defense
6. Kevo
7. Beddies

45. 1. Breathometer
2. Onesole
3. Lollacup
4. Coffee Cups
5. First Defense
6. Kevo
7. Beddies

47. The Elevator Pitch…
You want to be an successful entrepreneur
Our Promise:
We'll help validate your ideas and show you a fast effective way to
build a meaningful and enduring company
Proof:
World class people ready to help in Brussels
A proven track record, 70% of graduates succeed and 45% get
funded

48. Free applications until August 31
http://fi.co/apply/brussels