Introduction to the Contest Judging Criteria Business Concepts: Idea Generation Competitive Analysis Business Model The Team Contest Details Schedule.

CSUF Business Plan CompetitionBoot Camp

Dr. Atul TeckchandaniFebruary 5, 2014

Agenda

Introduction to the ContestJudging Criteria

Business Concepts:Idea Generation

Competitive Analysis

Business Model

The Team

Contest DetailsSchedule

Guidelines for business concepts

Resources Available

Business Plan Competition

Open to all current CSUF students

Participants will complete a “Business Concept” questionnaire

21 questions

200 words or less to respond to each question

Semifinalists and finalists will present their business opportunity to a panel of judges

Contest winners receive cash prizes and in-kind services (over $10,000 in prizes to-date)

Judging Criteria

Overall attractiveness of the product/service the firm intends to offer

Is there a customer that really needs or wants your product/service?

Can you make money?

Can the team assembled execute on the opportunity?

What evidence have you gathered to support your assertions?

Raffle

Everybody sign in with Adrienne

Prizes will be awarded throughout the session

Stay to the end – the prizes get more valuable as the session continues

The Story of Starbucks

Generating Business Ideas

Method 1: Observing Trends

Source: Entrepreneurship – Successfully Launching New Ventures (Barringer and Ireland, 2011)

Generating Business Ideas

Method 2: Solving an existing problemNotice a problem and find a way to solve it.

Key source or problems: Complaints / frustrations

Generating Business Ideas

Method 3: Finding gaps in the marketplaceA gap in the marketplace is often created when a product or service is needed by a specific group of people but doesn’t represent a large enough market to be of interest to mainstream retailers or manufacturers.

How do you know if your idea is an opportunity?

Is it attractive?Does it have sufficient market potential and profitability?

Is it timely?Is there a need for this product now or in the near future?

Is it durable?Is it based on a temporary fad? Or more?

Does it add value for the buyer?Is there a tangible benefit (preferably financial) to the buyer over the alternatives?

Tip #1: Refine your idea till it becomes an opportunity

See if the idea can …… take advantage of trends

… solve a problem/frustration

… address a gap in the marketplace

Solicit feedback from others about the idea “Experts” that can provide specific information (people with first-hand knowledge of the areas you are interested in)

Family and friends

Others who will give you candid feedback

Let’s talk about your ideas

Do your ideas …… leverage trends in the marketplace?

… solve current customer problems or frustrations?

… address gaps in the marketplace?

Is it an idea or an opportunity? How can it be refined to make it an opportunity?

Starbucks: In the beginning

Competitor Analysis

Goal: A detailed analysis of your firm’s competitors.

Benefits: Understand the positions of your major competitors and the opportunities available.

Help clarify and refine your competitive advantage(s).

Source: Entrepreneurship – Successfully Launching New Ventures (Barringer and Ireland, 2011)

Performing a Competitor Analysis

Step 1: Identity 5-10 competitorsDirect competitors: businesses offering identical or similar products

Indirect competitors: businesses offering close substitute products

Another product or service fulfills the same need and offers a better price-for-performance trade-off (at similar usage levels).

Performing a Competitor Analysis

Step 2: Understand the strategies and behaviors of your competitors.

Sample Methods: Study competitors’ websites

Study other Internet sites containing information about customer perceptions of competitors (e.g., Yelp, amazon, etc.).

Read industry-related books, magazines, and Web sites.

Read recent news related to competitors.

Tip #2: Know the key players in your industry

Study your key competitors and substitutes

The Starbucks Business Model

Business Model

A plan or diagram for how the firm ...competes

uses its resources

structures its relationships

interfaces with customers

and creates value to sustain itself on the basis of the profits it generates

Generally speaking, a business model is all the activities that define how a firm competes in the marketplace.

The Lean Canvas

1 4

3

8

5

2

67

Mass Market

Company stores

Pleasant Environment

Quality

IngredientsRent Coffee Drinks

Coffee –related

productsEquipment

Convenience

Consistency

Premium coffee is only available at

home

Unique drinks

Personal assistance

Creating a sense of

community

Coffee connoisseurs

No “third place”

Italian-style cafes

Employees

Tip #3: Complete the canvas for your opportunity

The canvas can serve as an outline to help you answer many of the questions in the Business Concept paper

Download copies of the canvas at: http://blog.diotalevi.com.s3.amazonaws.com/leancanvas.pdf

New Venture Team

The group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

The team involves more than paid employees.

Usually, the team doesn’t come together all at once. Instead, it is built as the new firm can afford to hire additional personnel.

Source: Entrepreneurship – Successfully Launching New Ventures (Barringer and Ireland, 2011)

The Founder(s)

Founders’ qualities that may contribute to venture’s success:

Part of a team (especially one that has worked together before)

Prior entrepreneurial experience

Relevant industry experience

Quality of network and/or ability to develop a strong network of professional contacts

Higher education

Tip #4: Show why you should be the one pursuing this opportunity

An entrepreneur recognizes an opportunity gap and creates a business to fill it.

Are you passionate about this idea?

Does it leverage your skills and experiences?

Do you have resources at your disposal that can help turn this opportunity into a successful business? (e.g., social networks)

Tip #5: Be honest about the quality of your team

Discuss who is part of the team today and their strengths

Discuss who else is needed on the team and how you plan to address these needs

Think about what are the most critical skills needed to make the venture successful and whether all of them are possessed by current team members

Tip #6: Request a mentor’s help with your business concept paper

Email [email protected] to request a mentor

Business Plan Contest Schedule

2/21: Competition application closes

3/7: Business concept due

3/14: Semifinalists announced

3/28: Semifinal presentations

4/11: Finals presentations and awards ceremony

Business Concept Questionnaire

The Opportunity:What is your company going to make or serve?

Why did you pick this idea to work on?

Who is the target customer?

How do you know people need what you’re making?

What’s new or different about what you’re making?

What are your different revenue streams?

How much could you make?

Business Concept Questionnaire

The Industry:What are the substitutes for your product?

Who are your competitors? Name two or three of your most important competitors.

What do you understand about your business that other companies just don’t get?

Business Concept Questionnaire

Current Status:If you have already started working on your business, how long have you been working and what progress have you made?

Do you have a prototype yet? Have you tested it?

Do you have any intellectual property?

Do you have an initial working product or service you can sell? If not, when will you?

Have you launched your business yet? If so, how many customers do you have?

Do you have revenue? If so, how much?

If you are launched, what is your monthly growth rate in customers and revenues?

Business Concept Questionnaire

The Team:How long have the founders known one another and how did you meet?

Have any of the founders not met in person?

Do you have any work experience or expertise in this area?

Resources Available

Center for EntrepreneurshipTravis Lindsay: [email protected]

Adrienne Bailey: [email protected]

Phone: 657-278-4589

CSUF Librarians

Book: Art of the Start, by Guy Kawasaki

Next Steps

Apply for the contest

Complete the lean canvasSpend some time looking at competitors

Write the business concept paper

Good luck!