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Mind Your Business
Here are the key characteristics of each venture type: - Revolutionary ventures introduce entirely new products/services and aim to disrupt existing markets - Niche ventures focus on underserved customer segments within existing industries - Technology/innovation propagation ventures commercialize new technologies to drive industry transformation - Hustle ventures rely on entrepreneur's drive and adaptability more than detailed planning or large resources - Speculative ventures seek short-term profits from deals rather than developing sustainable long-term businesses Understanding the venture type helps assess viability, resource needs, and likelihood of achieving entrepreneur's goals.
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Mind Your Business
- 6. “ REAL Entrepreneurs base their direction on purposeful innovation in response to consumer demand and not on the desire to make a quick ” buck.
- 8. Do youwant to be master of your own financial destiny?
- 9. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings?
- 10. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable?
- 11. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before?
- 12. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots?
- 13. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful?
- 14. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals?
- 15. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others?
- 16. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up?
- 17. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things?
- 18. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes?
- 19. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions?
- 20. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions? Do you have a purpose, focus & direction in your life?
- 21. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions? Do you have a purpose, focus & direction in your life? Do you have the courage to try new things or go against the grain and be different from other people without working too much about what they think?
- 22. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions? Do you have a purpose, focus & direction in your life? Do you have the courage to try new things or go against the grain and be different from other people without working too much about what they think? Do you like make things happen instead of waiting for things o happen?
- 23. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions? Do you have a purpose, focus & direction in your life? Do you have the courage to try new things or go against the grain and be different from other people without working too much about what they think? Do you like make things happen instead of waiting for things o happen? Does pressure feed you rather than get to you?
- 24. Do youwant to be master of your own financial destiny? Are you willing to invest and possibly lose a large portion of your savings? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots? Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions? Do you have a purpose, focus & direction in your life? Do you have the courage to try new things or go against the grain and be different from other people without working too much about what they think? Do you like make things happen instead of waiting for things o happen? Does pressure feed you rather than get to you? Do you look forward to a good Challenge?
- 27. Reasons for Success Being at the right place at the right time Adaptive to change Good people will follow a visionary and a leader Customers will show loyalty when treated properly and shown the value proposition Capital will follow the management team that can demonstrate the ability to focus on their model and produce operational excellence
- 28. Reasons for Failure They fail the narrative test (the story doesn’t make sense) or the number test (the spreadsheet doesn’t add up) They underestimated the competition and how their model would stand up under pressure Retaliation of existing competitors or entry of new competitors Substitute products or services They fail to adjust to economic, social political, regulatory, industry, technology, environmental or competitive changes.
- 31. Facts you shouldknow! Most businesses fail in less than two years Fewer than one percent of the business plans submitted to VCs get funded Failures are planned by lack of planning
- 33. Answer First Five! What important customer problem can you solve with your Idea? How are you going to do it? How many customers are there that are willing to buy from you? Why can only you provide the solution? How can you defend against others?
- 34. Top level issues! Are both market and industry attractive? Does the opportunity offer compelling customer benefits as well as sustainable advantage over other solutions to the customer needs? Can the idea deliver the results they seek and promise to others?
- 35.
- 37. What’s That? 1. Marketdomain – macro level 2. Market domain – micro level 3. Industry domain – macro level 4. Industry domain – micro level 5. Team domain – aspirations 6. Team domain – execution capability 7. Team domain – connections or networks
- 38. Remember! Seven domainsare not equally important A simple scoring sheet will not work Wrong combination of domains can kill a venture Sufficient strength in some domains can mitigate weaknesses in others – good opportunities can be found in not-so-attractive markets and industries
- 39. Market Analysis Macro Level Overall market – size (number of customers, aggregate money spent, number of usage occasions) (Secondary data from trade publications, business press) Where is the market on the “S curve” – is it nascent, growing or saturating (infer from historical data) Trends in broad categories – demographic, socio-cultural, economic, technological, regulatory
- 40. Market Analysis Micro Level Target segment benefits and attractiveness – customers buy benefits, not products or features. How large is the segment and how fast it is growing – combination of primary and secondary data Who you would like to be your FIRST customer – can you name him Clearly differentiated solution with value delivery unambiguously stated Does an entry in a segment facilitate lateral entry in other segments?
- 41. Industry Analysis Macro Level Standard Industry Classification Positioning is not obvious Michael Porter – “Competitive Strategy” -- Five Force Framework Suppliers, Buyers, Incumbents, New Entrants, Substitutes Competitive rivalry, threat of entry and substitutes, bargaining power of buyers and suppliers Which of these forces are favourable and unfavourable (SWOT analysis)
- 42. Industry Analysis Micro Level Sustainable competitive advantage – How long will your edge last ? IP Protection – patents, copyright, trade secrets Superior organizational processes that are difficult to replicate Economically viable business model – availability of finance for long term and working capital, contract enforcement and revenue collection cycles
- 43. Team Analysis Financersgive as much importance to team as ideas. Accepted wisdom – Ideas come dime a dozen, who will execute? Aspirations, motivation and propensity for risk taking Ability to execute on critical success factors (CSFs) – unique to each industry market segment – better, cheaper, faster Connectedness up, down and across the value chain – ability to move from Plan A to Plan B
- 46. Venture Characteristics *Typology of Ventures Heuristics Heuristics Iterative Strategy to Exploit Entrepreneurial *Research& Fit Analysis *Personal goals *Process *Entrepreneurial Heuristics *Resources Capacity *Growth
- 47. Venture Typology Revolutionaryventures Niche ventures Ventures that are propagators of new technology or innovations Hustle ventures Speculative (deal) ventures
- 48. SWOT Analysis Strengths– identifying existing organisational strengths Weaknesses – identifying existing organisational weaknesses Opportunities – Identify existing and emerging market opportunities Threats – Identify threats to the future success of the business
- 49. PEST Analysis Political:local, national and international political developments – how will they affect the business ? Economic: what are the main economic issues – both nationally and internationally – that would have a bearing on the business. Social: Identify existing and emerging social trends that would have impact on the business and their implications for future planning Technological: Technological changes and their implications to competitive advantage.
- 50. PEST Analysis Political:local, national and international political developments – how will they affect the business ? Economic: what are the main economic issues – both nationally and internationally – that would have a bearing on the business. Social: Identify existing and emerging social trends that would have impact on the business and their implications for future planning Technological: Technological changes and their implications to competitive advantage.
- 51. Potter’s Five ForceModel Determinates of Profitability Current Suppliers Competitors The Company Potential Substitute Competitors Products Customers
- 52. Bob Fabio’s “WHAT” What messages . . . to reach What market(s) . . . with What product(s) . . . distributed through What channel(s) . . . against What competition . . . with What pricing and packaging . . . to deliver What value . . . in What time frame?
- 53. Bob Fabio’s “WHAT” What messages . . . to reach What market(s) . . . with What product(s) . . . distributed through What channel(s) . . . against What competition . . . with What pricing and packaging . . . to deliver What value . . . in What time frame?
- 54. Market Opportunities /Validations How will the product or service be priced? How will you reach the target customer? How much does it cost to acquire a customer in time and Money? How much does it cost to produce and deliver the product or service? How much does it cost to support a customer? How easy (expensive) is it to retain a customer?
- 55. Competition Who arethe current competitors? What resources do they control and what are their strengths and weaknesses? How will they respond to our decision to enter the business and what can we do? Who else might notice and enter our market? Can we build barriers to competitors by forming alliances?
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- 59. In just about12 slides 1 2 3 4 Intro Company Problem buy- Your solution overview and in; Market and and products; What $ you elevator opportunity pitch; size with benefits are after 5 6 7 8 More Marketing solution details Technologies Competition and leverage points 9 10 11 12 How you Status; Recap; make money; Management Timeline; Call-to- How much? Team Use of funds action
- 60. Venture Capital Early Stage Financing The SEED Stage – In this stage relatively small amounts of capital is used to prove concepts & finance feasibility studies. The START-UP Stage – In this stage funding is done for product development and initial marketing, but with no commercial sales yet (basically to get operations started).
- 61. Venture Capital Development Financing The SECOND Stage – In this stage working capital is used for initial growth phase, but no clear profitability or cash flow yet. The THIRD Stage – In this stage financing is done for major expansion for company with rapid sales growth, at break even or positive profit levels but still private company. The BRIDGE/PRE-PUBLIC Stage – In this stage Bridge financing is done so as to prepare the company for public offering.
- 64. Mind Your Business shiftHAPPENED