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IGNITING YOUR BUSINESS IDEAS Not all ideas are Business Ideas.

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Presentation on theme: "IGNITING YOUR BUSINESS IDEAS Not all ideas are Business Ideas."— Presentation transcript:

1 IGNITING YOUR BUSINESS IDEAS Not all ideas are Business Ideas

2 What makes a good business idea? It starts with a good idea. Good ideas fill a void or solve a problem:

3 How? It makes somebody...  Happier  Healthier  Richer  More a price they are willing to pay

4 But... Great ideas alone don’t make great businesses!

5 How is a great business idea different? You have to consider more than just the idea Micro level market attractiveness Macro level market attractiveness Macro level industry attractiveness Sustainable advantage Team

6 Micro level market attractiveness Vs.

7 Macro level market attractiveness Market size Short term market growth Long term market growth

8 Macro level industry attractiveness Porter’s five forces: 1. Threat of entry 2. Supplier power 3. Buyer power 4. Threat of substitutes 5. Competitive rivalry

9 Macro level industry attractiveness 1. Threat of entry Is it easy or difficult for companies to enter this industry?  Cost  Specialist knowledge  Route to market

10 Macro level industry attractiveness 2. Supplier power Do suppliers to this industry have the power to set the terms and conditions?  How many suppliers are there?  How transparent are they?

11 Macro level industry attractiveness 3. Buyer power Do Buyers have the power to set terms and conditions?  What are their alternatives?  How easy is it to find them?

12 Macro level industry attractiveness 4. Threat of substitutes Is it easy or difficult for substitute products to steal my market?  Think about the customer need

13 Macro level industry attractiveness 5. Competitive rivalry Is the competitive rivalry intense?  Assess your competitors fairly.  If you know about them, they may well be smarter and better funded than you.

14 Sustainable comparative advantage Firstly, there must be an advantage (for your customers)  Better  Faster  Cheaper Then, you have to sustain it.

15 Sustainable comparative advantage Proprietary elements  Patents  Trademarks  Trade Secrets Superior organisational processes (Vs. ) Business model is economically viable Commitment to innovation

16 “Best beats first” Jim Collins

17 Team Ability  Team as a whole  Find the gaps and fill them  Experience counts Alignment  Commitment to the same goals  Passion  It will be hard

18 Team Network  How connected are you?  Suppliers to your business (and your competitors)  Distributors and customers (today and in the future)  Competitors and substitutes Names, titles, & contact information please. It’s not what you know, it’s who you know, so get networking!

19 What makes a great business idea? A good idea – Somebody needs/wants it A good market – Large and growing A good industry – You can enter (with an advantage) A great team – Find the right people (they might not be your friends)

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