not all ideas are business ideas
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Not all ideas are Business Ideas. Igniting Your Business Ideas. What makes a good business idea?. It starts with a good idea. Good ideas fill a void or solve a problem:. How?. It makes somebody... Happier Healthier Richer More attractive ...at a price they are willing to pay. But. - PowerPoint PPT PresentationTRANSCRIPT
I G N I T I N G YO U R B U S I N E S S I D E A S
Not all ideas are Business Ideas
What makes a good business idea?
It starts with a good idea.Good ideas fill a void or solve a problem:
How?
It makes somebody... Happier Healthier Richer More attractive
...at a price they are willing to pay
But...
Great ideas alone don’t make great businesses!
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
Micro level market attractiveness
Vs.
Macro level market attractiveness
Market sizeShort term market growthLong term market growth
Macro level industry attractiveness
Porter’s five forces:1. Threat of entry2. Supplier power3. Buyer power4. Threat of substitutes5. Competitive rivalry
Macro level industry attractiveness1. Threat of entry Is it easy or difficult for
companies to enter this industry?
Cost Specialist knowledge Route to market
Macro level industry attractiveness2. 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?
Macro level industry attractiveness3. Buyer power Do Buyers have the power
to set terms and conditions?
What are their alternatives? How easy is it to find them?
Macro level industry attractiveness4. Threat of substitutes Is it easy or difficult for
substitute products to steal my market?
Think about the customer need
Macro level industry attractiveness5. 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.
Sustainable comparative advantage
Firstly, there must be an advantage (for your customers) Better Faster Cheaper
Then, you have to sustain it.
Sustainable comparative advantage
Proprietary elements Patents Trademarks Trade Secrets
Superior organisational processes
(Vs. )Business model is economically viableCommitment to innovation
“Best beats first”Jim Collins
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
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!
What makes a great business idea?
A good idea – Somebody needs/wants itA good market – Large and growingA good industry – You can enter (with an advantage)A great team – Find the right people (they might not be
your friends)