IDENTIFYING ENTREPRENEURIAL OPPORTUNITIES. The Entrepreneurs Club September 27, 2004. IDEAS …last for ever …are free …everybody has ideas …do not need customers to survive. OPPORTUNITIES …are perishable …require work …require fit …must create customer value.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The Entrepreneurs Club
September 27, 2004
…last for ever
…everybody has ideas
…do not need customers to survive
…must create customer valueIdeas are not the same as Opportunities
Always consider investing in a Grade A man with a Grade B idea.
Never invest in a Grade B man with a Grade A idea.
George Doriot, ‘father’ of the VC industry
APPROPRIATE RISK/REWARD ALLOCATION AND INCENTIVES
FAVORABLE TECHNOLOGY MACROECONOMY
FAVORABLE RULES OF THE GAME
Process need (Dell&Chang/Taiwan Semiconductors)
Industry and Market structures
Changes in perception (Case/AOL, Omidyar/eBay, Yang/Yahoo)
New Knowledge (Noyce&Moore/Intel, Boyer&Swanson/Genentech)
Reading trade publications (Gates&Allen/Microsoft)
Engaging in consulting projects (Kelleher/SWA)
Idea arbitrage (Schultz/Starbucks)
Business Models (Amazon)Sources of Opportunities
Venture FormationPeople: Opportunity Identification
Source: Based on Fig.3 from Ardichvili, Cardozo, Ray (2003) "A theory of entrepreneurial opportunity identification and development« , Journal of Business Venturing
Systematic search 4%
Swept in by PC revolution
Discovered by luck
Idea from previous job
Source: Amar Bhide (1994), “How entrepreneurs craft strategies that work,” Harvard Business Review (March-April).
Customers 75% 25%
Employees 59% 37%
Professional acquaintanc 41% 49%
Suppliers 47% 35%
Trade publications 40% 38%
Magazines, newspapers 26% 51%Good Opportunities come from
Top of the list
Bottom of the list
VI= Very Important, SI= Somewhat Important, NI= Not Important, VI+SI+NI=100%
Hills and Schrader, « Successful Entrepreneur’s Insights into Opportunity Recognition », 1998