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

2. 5-2 Chapter 5 The Opportunity: Creating, Shaping, Recognizing, Seizing

3. 5-3 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

4. 5-4 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

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8. 5-8 Where are Opportunities Born? Technology sea change Moore’s Law Metcalf’s Law Disruption Market sea change Value chain disruption/obsolescence/vulnerability Deregulation

9. 5-9 Where are Opportunities Born? Societal sea change Changes in ways we live, learn, work, etc. Gilder’s Law – 10x s in 10 years Brontosaurus factor Arrogance Loss of peripheral vision Deadened reflexes – turning the tanker Irrational exuberance Undervalued assets

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11. 5-11 Brainstorming Rules Define your purpose Choose participants Choose a facilitator Brainstorm spontaneously, copiously No criticisms, no negatives

12. 5-12 Brainstorming Rules Record ideas in full view Invent to the “void” Resist becoming committed to one idea Identify the most promising ideas Refine and prioritize

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16. 5-16 Evaluating Criteria for evaluating venture opportunity Industry and market Economics Harvest issues Competitive advantage issues Management team issues Personal criteria Strategic differentiation

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