Is the problem real?

Objectives Introduce opportunity identification as an approach to entrepreneurial opportunity analysis and new venture creation

Macroeconomic Change Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Opportunity Identification Problem Solution Advantage Team Value Innovation Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

Defining the problem 1.Who is your customer? This is the first step to defining your market and understanding the problem or desire Analysis of industries, markets, and value innovations narrows the focus to real customers

Defining the problem (con’t) 2.What are their needs and wants? Focus on customer value first. Why do they need your product? What benefits will they gain? –Can they make money or save money with your product? –Can they save time with your product? –Other benefits?

Are there enough customers? If you have a real customer, and If you can deliver real value, Then ask –How many people experience these problems now? In the future? –How many buyers are there? –Are there enough people who care about this problem for you to be financially successful by solving the problem?

Summary Validate your ideas about the problem and candidate solutions –Talk with prospective customers very early in the product development process Engage with customers pre-prototype –Get insights on what features and values matter –Know what they are willing to pay for the product that you envision (before your invest in it) Know the market size and its potential