V Three traits of Entrepreneurs : Passion !

Conviction ! Tenacity !
V Entrepreneursǯ daily question Ȃ DzWhy will this
new business work when most will fail ?dz
V Reason to ask the above question Ȃ
À To know the fatal flaw well in time
À If answer is positive : to embrace their opportunity
with renewed passion
V Oerious Entrepreneurs run road tests of the
opportunities they consider. The Book
provides the toolkit for the same
V Not about success story of one Entrepreneur
or a method to get rich quick
V Map for opportunity-assessing, opportunity
shaping process
V Useful framework Ȃ the 7 domains-to lay the
foundation on which to build a B-Plan
¦ Oize of the Market
¦ Number of Customers
¦ Aggregate money spent
¦ Number of units bought annually

¦ Growth prospects of the Market

¦ Broad Macro-Environmental Trends

¦ Demographic
¦ Oocio-cultural
¦ Economic
¦ Technological
¦ Natural
¦ Industry Attractiveness - m

 

 
¦ Threat of Entry
¦ Buyer Power
¦ Oupplier Power
¦ Threat of Oubstitutes
¦ Competitive Rivalry

¦ Future changes in the Industry

¦ Collection of Primary Data

V Naïve entrepreneurs say DzWe have no competitiondz
V Prudent ones, ask these questions:
À Is there a customer segment willing to pay a price
for the a compelling benefit/resolution of a Dzpaindz
À Are these benefits clearly differentiated in the
customerǯs mind?
À Oize and growth rate of segment?
À Will entering this segment allow entry in related
segments?
V Is the business model of the entrant sustainable ?
À Barrier to imitations
ΠProprietary elements : Trade secrets? Patents?
ΠOrganizational capabilities?
V Economically Viable Business model : AOOEOO RIO
À Revenue w.r.t investment
À Costs to acquire and retain customers
À contribution margins and their adequacy
À operating cash cycle characteristics (WCM)
V First-hand experience in the industry makes
all the difference
À Partner ?
À Network?
V Ouch answers cannot be found on the
internet
V Micro factor are more important to evaluate
¦ Management- single most important factor

¦ The 3 Domains
¦ Opportunity and teamǯs business mission, personal
aspirations and risk propensity
¦ Ability to execute on the critical success factors
¦ Response across the value chain

¦ Benefits of assessing themselves in the

three team domains
V Markets? Or Industries?
V Markets
À Growing fast
À Ohrinking digital divide
V Industries
À -ow entry barriers
À Differentiation difficult to establish
À Hard to sustain competitive advantage
V Introduce both old and new paradigm people on
the team
V Running shoes for distance runners
V -ighter, better cushioning, better lateral
stability
V Micro perspective
V Oimilar successes in other sharply targeted
footwear niches
V Oecondary Data
À Trade & Business Publications in -ibrary/Internet
À Government Reports
V Primary Data
À Interviews
À Observations
À Focus Groups
À Ourveys
À Market Experiments
V Interpretation
V Finding the major flaw that cannot be
resolved
V If found, abandon the opportunity
V If not, two outcomes:
À Best Case: resource providers identify the flaws
and refuse you the resources needed
À Worst Case: you secure the required resources and
start the business only to discover the flaws later
V Opportunities can be shaped & developed in
many ways
V Fatal flaws can be fixed
V A different target market can be chosen
V The offering can be adapted
V Opportunity can be pursued at a different
level in the value chain
V Additional individuals can be found