Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Opportunity: Creating, Shaping, Recognizing, Seizing Chapter Four

Published byLaurence Black Modified over 8 years ago

Similar presentations

Presentation on theme: "The Opportunity: Creating, Shaping, Recognizing, Seizing Chapter Four"— Presentation transcript:

1 The Opportunity: Creating, Shaping, Recognizing, Seizing Chapter Four
Dowling BA 560 Fall 2006

2 BA560 Venture Planning Prof. Dowling
The Opportunity When is an idea an opportunity? An opportunity has the qualities of being attractive, durable, and timely and is anchored in a product or service which creates or adds value for its buyer or end user. BA560 Venture Planning Prof. Dowling

3 BA560 Venture Planning Prof. Dowling
The Opportunity Opportunities… Are created, or built, using ideas and entrepreneurial creativity. Are spawned, in a free market society, when there are changing circumstances, chaos, confusion, inconsistencies, lags or leads, knowledge and information gaps. Are situational. Conditions can be idiosyncratic or generalizable. BA560 Venture Planning Prof. Dowling

4 BA560 Venture Planning Prof. Dowling
New Ventures Fundamental realities Most new ventures are works in process and works of art Most business plans are obsolete at the printer Speed, adroitness of reflex, and adaptability are crucial The key to succeeding is failing quickly and recouping quickly BA560 Venture Planning Prof. Dowling

5 BA560 Venture Planning Prof. Dowling
New Ventures Fundamental realities Success is highly situational, depending on time, space, context, and stakeholders The best entrepreneurs specialize in making “new mistakes” only Starting a company is much harder than it looks, or you think it will be; but you can last a lot longer and do more than you think if you do not try to do it solo BA560 Venture Planning Prof. Dowling

6 Exhibit 4.1 Circle of Venture Capital Ecstasy
BA560 Venture Planning Prof. Dowling

7 BA560 Venture Planning Prof. Dowling
The Opportunity Opportunity Spawners & Drivers Regulatory Changes 10-fold change in 10 years or less Reconstruction of value chain and channels of distribution Proprietary or contractual advantage Existing management/investors burned out or under managed Entrepreneurial leadership Market leaders are customer-obsessed or customer-blind BA560 Venture Planning Prof. Dowling

8 Where are Opportunities Born?
Technology sea change Moore’s Law Metcalf’s Law Disruption Market sea change Value chain disruption/obsolescence/vulnerability Deregulation BA560 Venture Planning Prof. Dowling

9 Where are Opportunities Born?
Societal sea change Changes in ways we live, learn, work, etc. Gilder’s Law – 10xs in 10 years Brontosaurus factor Arrogance Loss of peripheral vision Deadened reflexes – turning the tanker Irrational exuberance Undervalued assets BA560 Venture Planning Prof. Dowling

10 BA560 Venture Planning Prof. Dowling
The Opportunity The highly organic and situational character of the entrepreneurial process underscores the criticality of determining fit and balancing risk and reward. -Timmons BA560 Venture Planning Prof. Dowling

11 BA560 Venture Planning Prof. Dowling
The Opportunity Ideas: Over-rated? ‘Flashes of brilliance’ are rare: Instead, it’s more common to see a series of trial-and-error iterations before a promising idea fits with what the market wants. BA560 Venture Planning Prof. Dowling

12 BA560 Venture Planning Prof. Dowling
The Opportunity First-Mover Advantage Though not a guarantor of success, there is tremendous potential value in being first with an idea, so long as you have the capacity to capitalize on being first and establishing market share or erecting other barriers to entry. BA560 Venture Planning Prof. Dowling

13 BA560 Venture Planning Prof. Dowling
The Opportunity The ‘Great Mousetrap Fallacy’ ‘If a man can make a better mousetrap … the world will make a beaten path to his door.’ Emerson ‘The truth of the matter is that ideas are inert and, for all practical purposes, worthless.’ Timmons BA560 Venture Planning Prof. Dowling

14 BA560 Venture Planning Prof. Dowling
The Opportunity Experience: Herbert Simon The entrepreneur’s pattern- recognition skills The ‘50,000 Chunks’ of experience Seeing what others don’t see BA560 Venture Planning Prof. Dowling

15 BA560 Venture Planning Prof. Dowling
The Opportunity $1 billion Market $500 million Market Size $250 million Window of Opportunity $100 million BA560 Venture Planning Prof. Dowling 5 Years 10 Years 20 Years

16 BA560 Venture Planning Prof. Dowling
Exhibit 4.7 BA560 Venture Planning Prof. Dowling

17 BA560 Venture Planning Prof. Dowling
Evaluating Criteria for evaluating venture opportunity Industry and market Economics Harvest issues Competitive advantage issues Management team issues Personal criteria Strategic differentiation BA560 Venture Planning Prof. Dowling

18 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Industry & Market Market Market structure Market size Market capacity Growth rate Market share attainable in year 5 Cost Structure BA560 Venture Planning Prof. Dowling

19 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Economics Time to breakeven/positive cash flow ROI potential Capital requirements Internal rate of return potential Free cash flow characteristics BA560 Venture Planning Prof. Dowling

20 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Harvest Issues Value-added potential Valuation multiples and comparables BA560 Venture Planning Prof. Dowling

21 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Competitive Advantage Issues Fixed and variable costs Control over costs, prices, and distribution Barriers to entry Proprietary protection Response/lead time Legal, contractual advantage Contracts and networks Key people BA560 Venture Planning Prof. Dowling

22 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Management Team Entrepreneurial team Industry and technical experience Integrity Intellectual honesty BA560 Venture Planning Prof. Dowling

23 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Fatal-Flaw Issue Personal Criteria Goals and fit Upside/downside issues Desirability Risk/reward tolerance Stress tolerance BA560 Venture Planning Prof. Dowling

24 BA560 Venture Planning Prof. Dowling
The Opportunity Criteria for Evaluating Venture Opportunities Exhibit Timmons Strategic Differentiation Degree of fit Team Service management Timing Technology Flexibility Opportunity orientation Pricing Distribution channels BA560 Venture Planning Prof. Dowling

25 BA560 Venture Planning Prof. Dowling
Exhibit 4.9 BA560 Venture Planning Prof. Dowling

Download ppt "The Opportunity: Creating, Shaping, Recognizing, Seizing Chapter Four"

Similar presentations

Entrepreneurship The Entrepreneurial Process. What does it take to get started?

Entrepreneurship The Entrepreneurial Process. What does it take to get started?
Masters in Engineering and Management of Technology Masters in engineering Design Entrepreneurship and New Venture Creation Rui Baptista.

Masters in Engineering and Management of Technology Masters in engineering Design Entrepreneurship and New Venture Creation Rui Baptista.
Myths / Realities About Entrepreneurs

Myths / Realities About Entrepreneurs
1 Chapter 12 Strategic Entrepreneurship PART IV MONITORING AND CREATING ENTREPRENEURIAL OPPORTUNITIES.

1 Chapter 12 Strategic Entrepreneurship PART IV MONITORING AND CREATING ENTREPRENEURIAL OPPORTUNITIES.
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
SUSAN YAMADA EXECUTIVE DIRECTOR Analyzing An Opportunity.

SUSAN YAMADA EXECUTIVE DIRECTOR Analyzing An Opportunity.
EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT

EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT
Preparing Your Business Plan

Preparing Your Business Plan
8 - 1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.

8 - 1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.
5-1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.

5-1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.
New Venture: The Opportunity Prof. Alexander Settles.

New Venture: The Opportunity Prof. Alexander Settles.
6 - 1 Chapter 6 The Business Plan McGraw-Hill/Irwin New Venture Creation, 7/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.

6 - 1 Chapter 6 The Business Plan McGraw-Hill/Irwin New Venture Creation, 7/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
6 - 1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.

6 - 1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.
The Business Plan Venture Planning Chapter 12 Dowling Fall 2005.

The Business Plan Venture Planning Chapter 12 Dowling Fall 2005.
Nature of Opportunity MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado.

Nature of Opportunity MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado.
Venture Planning Chapter Four Dowling BA 560 Fall 2005.

Venture Planning Chapter Four Dowling BA 560 Fall 2005.
The Entrepreneurial Manager Chapter 7 Dowling BA 560 Fall Term 2006.

The Entrepreneurial Manager Chapter 7 Dowling BA 560 Fall Term 2006.
Venture Planning Chapter 1 Dowling BA 560 Fall Term 2006.

Venture Planning Chapter 1 Dowling BA 560 Fall Term 2006.
Chapter Three The Entrepreneurial Process Chapter Three Dowling BA 560 Fall Term 2006.

Chapter Three The Entrepreneurial Process Chapter Three Dowling BA 560 Fall Term 2006.
Venture Capital Slide Show Presentation Suggested Format No more than 10 slides (not all slides No more than 10 slides (not all slides shown here will.

Venture Capital Slide Show Presentation Suggested Format No more than 10 slides (not all slides No more than 10 slides (not all slides shown here will.

Similar presentations

Ads by Google