The Six Fundamentals of a Well-Built VenturePresented by: The Wayne Brown Institute
The Six Fundamentals• Innovation• Value• Persistence• Scarcity• Appropriability• Flexibility
Innovation“Entrepreneurship is an act of innovation that involves endowing existing resources with new wealth-producing capacity.” Drucker (1985)Innovating acts endow old resources with new value “new combinations” which achieve wealth producing capacity when product and market are matched.Two Sub-questions are raised:• Is it a new combination?• Is there a product-market match?
Value• Is there a net buyer benefit?• Are there margins?• Is volume sufficient?
Persistence• Is it repetitive?• Is there a long-term need?• Are resources sufficient?
Scarcity• Is it non-imitable?• Is it non-substitutable
Appropriability• Is there no slack?• Is there no holdup?
Flexibility• Is uncertainty minimized?• Is ambiguity reduced?• What is your level of Core Competence?
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