MBAX 6100 Entrepreneurship & Small Business Management

1. MBAX 6100Entrepreneurship & Small Business Management Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado Nature of Opportunity

2. Today’s Agenda • Opportunity Recognition • Tech Transfer Office representatives • Feasibility Plan • ICEDELIGHT’s • Feasibility Plan • Mid-term alternative Week 10 Nature of Opportunity

3. Next Week’s Schedule • Entrepreneurs at early stage • Entrepreneurial market research – bring laptops • Read • BZ-3 • M-2 • Noodles’ case • Speakers • Aaron Kennedy • Joseph Yu Nature of Opportunity

4. 0 Entrepreneurial Characteristics • Motivated by achievement • Internal locus of control • Risk-taking • Tolerance for ambiguity • Sense of independence • Passion Nature of Opportunity

5. Attractive Durable Timely Adds value Open window Entry is feasible Management team Competitive advantage Economics Rewarding Forgiving Growth When Is an Idea an Opportunity? Timmons, New Venture Creation Nature of Opportunity

6. 0 Good Opportunity • Market is strong & accessible • Compelling need • Sustainable competitive advantage • Unique/different • High margins • Management Nature of Opportunity

7. Favorable trends Market is growing Size is big enough for your venture to be worth the effort Market share is attainable Favorable window of opportunity 30%+ per year $100 million with $1 billion potential Minimum 20% 0 Market Demand Is Strong Nature of Opportunity

8. Market Is Accessible • Market Structure • Fragmented • No dominant player • SOT’s (slow, old or traditional) • Response of competitors to new entrants is indifferent • No proprietary barriers to entry • Access to channels is possible • Forgiving of mistakes Nature of Opportunity

9. 0 Compelling Need • Solves a problem • Unfulfilled niche • Dissatisfaction with current products/services • Poor quality or service • Needs • Physical Physiological • Emotional Social • Financial Intellectual Nature of Opportunity

10. 0 Competitive Advantage • Understand the market • Understand the competition • Sustainable • Innovation • Differentiation • Resources & capabilities • Really understand the market & competition Nature of Opportunity

11. 0 Unique/Different • You must differentiate your business – it’s already being done by someone • More than unique product/service design • Marketing – positioning • Operations – process or value chain • Channels – create a new channel • Benefits Nature of Opportunity

12. High Margins • Advantages of high gross profit margins • Funding • Cash flow • Development & marketing • Mind-set of high & low margin thinking • Can solve the screw-up problem Nature of Opportunity

13. Management • Meets your personal interests & objectives • Takes advantage of your experience • Would your potential customers buy from you? • You can put a management team together • You are passionate and commit Nature of Opportunity

14. “Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative and creation there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: That the moment one definitely commits oneself, Providence moves too. All sorts of things occur to help one that would never other wise have occurred. A whole stream of events issue from the decision, raising in one’s favor all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamed would have come his way. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.” Goethe’s Faust. Commitment Nature of Opportunity

15. Good Opportunity • Market is strong & accessible • Compelling need • Sustainable competitive advantage • Unique/Different • High margins • Management Nature of Opportunity

16. 0 New Ventures Are Opportunity Driven • Not technology driven • Not product driven • Not solution driven • Not asset driven • Not resource driven Nature of Opportunity

17. 0 When Opportunity Driven • Uncertainty is good! • Lack of information is good! • Being small & flexible can be good! Nature of Opportunity

18. 0 Ideas Are Overrated • Build a better mouse trap • Most ideas already thought of • Process of refinement is essential Nature of Opportunity

19. Feasibility Plan • Objectives • Assessment Framework • Assignment Nature of Opportunity

20. 0 Objectives of a Feasibility Plan • Will anyone buy it? • Can you make money? Is this a good opportunity? Nature of Opportunity

21. Assessment Framework • Part I Market Analysis • Part II Industry Analysis • Part III Venture Analysis Nature of Opportunity

22. Approach • Start with broad perspective • Answer questions in each part of the Framework • Talk to wide variety of people • Qualitative customer survey • Secondary research of industry and competition Nature of Opportunity

23. Assignment • Answer questions in Feasibility Plan Framework • Conduct interviews with business people (5 per person) • Prepare Call Reports • Conduct customer survey (5 per person) • Prepare answers to surveys • Deliverable • Parts I & II due week 10 • Parts I, II & III due week 15 • Parts I & II revised based on feedback and further research • Presentations week 15 • DECK format Nature of Opportunity

24. Just Do It 0 “Millions of people have “an idea”, but unless they do something with it, their ideas aren’t worth a damn. There are a lot of quacks and kooks out there who claim they invented the Weed Eater, and I don’t doubt that there are some people who genuinely thought of this idea--but what did they do with it? Nothing. What do they deserve? Nothing.” George C. Ballas, inventor of Weed Eater Nature of Opportunity