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Evaluating Ideas

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Brussels Founder 101 August 13, 2014
Founder Institute meetup

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Evaluating Ideas

  1. 1. Welcome Evaluating business ideas
  2. 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. 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. 4. By focusing hard on ideas first 70% of graduates succeed and 45% get funded
  5. 5. Let’s be honest …. Most start ups have ideas only a mother could love !
  6. 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. 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. 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. 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. 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. 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. 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. 13 Pets.com Pet supplies via the internet Save big, save time Stay at home
  14. 14. 14
  15. 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. 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. 17 Continuous effort is the key to unlocking your potential Winston Churchill
  18. 18. 18
  19. 19. Etoys.com The new place to buy toys. Find you want on the internet
  20. 20. 20
  21. 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. 22
  23. 23. 23
  24. 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. 25
  26. 26. Now the most important question Why would this business fail … Why would it fail … Pets.comKosmoDespair.comEtoys.comPetrock.comFloozWebvan
  27. 27. 27
  28. 28. Costs per stage Ideas, screening Concept, analysis Prod. devel Test mktg commercialization The time to Make mistakes ! Budget Time
  29. 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. 30 Should consumers be followed or led ? Mobile phone Computers Internet…
  31. 31. Not all new products are revolutions ! There are many holes in the markets, but fewer markets in the holes ..
  32. 32. Better is not always better Fat Bastard is priced higher, tastes less good but outsells Bilton 10 to 1…
  33. 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. 34. Koen’s Presentation
  35. 35. A new experiment 7 pitches Your challenge… pick the 3 winners
  36. 36. 1.Breathometer 2.Onesole 3.Lollacup 4.Coffee Cups 5.First Defense 6.Kevo 7.Beddies
  37. 37. 1.Breathometer 2.Onesole 3.Lollacup 4.Coffee Cups 5.First Defense 6.Kevo 7.Beddies
  38. 38. 1.Breathometer 2.Onesole 3.Lollacup 4.Coffee Cups 5.First Defense 6.Kevo 7.Beddies
  39. 39. 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
  40. 40. Free applications until August 31 http://fi.co/apply/brussels

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