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

5-1Copyright © 2009 The McGraw-Hill Companies, Inc., All

Rights Reserved.McGraw-Hill/Irwin

5-2

Chapter

5

The Opportunity: Creating, Shaping,

Recognizing, Seizing

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

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

5-5

5-6

5-7

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

5-9

Where are Opportunities Born?

• Societal sea change• Changes in ways we live, learn, work, etc.• Gilder’s Law – 10xs in 10 years

• Brontosaurus factor• Arrogance• Loss of peripheral vision• Deadened reflexes – turning the tanker

• Irrational exuberance• Undervalued assets

5-10

5-11

Brainstorming Rules

• Define your purpose• Choose participants• Choose a facilitator• Brainstorm spontaneously, copiously• No criticisms, no negatives

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

5-13

5-14

5-15

5-16

Evaluating

• Criteria for evaluating venture opportunity• Industry and market• Economics• Harvest issues• Competitive advantage issues• Management team issues• Personal criteria• Strategic differentiation

5-17

5-18