SB113 Course Overview Risk, Resource and Opportunity Marc Compeau – 8/23/04.

SB113 Course Overview

Risk, Resource and Opportunity

Marc Compeau – 8/23/04

“Do you have what it takes to

be an entrepreneur?”

The Aptitude Test

What is entrepreneurship?

Assuming risk and managing resources in order to capitalize on recognized opportunity.

What is “Intrapreneurship” ?

“Action without thought is wasteful, thought without

action is foolish.”

4 Step Start Up Analysis

• Step 1. Audience assessment

• Step 2. Opportunity assessment

• Step 3. Resource Assessment

• Step 4. Risk Assessment

Mike and Marc

Mike – Web based service providing home delivery of McDonalds food

Marc – International Chain of retail locations selling super long burning light bulbs.

Step 1. Define your Audience• Clearly define who your audience is-

• You?• Investor?• Mentor?• Potential Partner?• Potential Buyer?• Customer?

Mike and Marc



“ I was seldom able to see an opportunity until it ceased to be one.” – Mark Twain

Step 2. Analysis of the Opportunity

•Opportunity recognizers vs. Opportunity Shapers

•Market demand is a key ingredient to measuring opportunity

•Let the customer take you to the opportunity

•Ideas are a dime a dozen, opportunities are few and far between

Opportunity

• Describe the spending habits of your primary target audience vs. tell me about your competition.

• What benefits and attributes will your customer value the most?

• What are the financial outcomes of your competitive advantage?

• Opportunity = 3 M’s; Market demand, Market size and structure, Margin analysis

Opportunity

• How will your business solve your customer’s problem?

• How will your customer view your solution as different from your competitor’s solution?

Opportunity

• Know the barriers to, and boundaries of, your opportunities.

Mike and Marc



Step 3. What are your Resource requirements?

• Understand and use resources, but don’t be driven by them.

• Resources – Minimize and Control vs. Maximize and Own

Resources

• Some experts feel you are under investing if you are profitable

• Resources are the best place to unleash creativity

• Think cash last / Bootstrapping first

ResourceTeam:

What’s more important, the team or the opportunity?

Which would you prefer:A team with a B idea or B team with an A idea?

Resources

– ask yourself these questions;

• What makes a great follower?

• Are you a great follower?

Great leaders understand how to be a follower

Resources

• Demonstrate your motivation to excel• Demonstrate your commitment and

determination• Demonstrate your tolerance of risk, ambiguity

and uncertainty• Demonstrate your awareness of team locus

of control• Demonstrate Adaptability, leadership,

communication

Mike and Marc



Step 4. Understand the Risk

• You have no strategy until you have said no to several opportunities

• Look for “Risk reducers”, how can I get others to accept a portion of my risk?

• Intelligent risk always pays off.

Mike and Marc



Audience

•Who am I interested in persuading?

• What do they already know?

•What do I think theyWant to know?

ORWhat do I need

to know?

Audience




ORWhat do I need

to know?

Move your idea through the four step analysisMove your idea through the four step analysis

Opportunity

•Define the Opportunity

•Know the Opportunity

•Understand the Barriers and boundaries

Opportunity




Move your idea through the four step analysis Move your idea through the four step analysis

YEAR 1

•Students launch, run, and close

a business venture

• “Just-in-time”classroomlearning

YEAR 1


a business venture


Audience




ORWhat do I need

To Know?

Audience




ORWhat do I need

To Know?

Resource

•Minimize and Control

•Be creative

•Cash Last

•Demonstrate whatMakes you valuable

•Focus on the Team

Resource


•Be creative

•Cash Last




Opportunity




Opportunity




YEAR 1


a business venture


YEAR 1


a business venture


Audience




ORWhat do I need

To know?

Audience




ORWhat do I need

To know?


Risk

•Strategy includesPassing up

Opportunities

•Look for risk Reducers

•Intelligent risk Always pays off

Risk

•Strategy includesPassing up

Opportunities

•Look for risk Reducers

•Intelligent risk Always pays off

Resource


•Be creative

•Cash Last



Resource


•Be creative

•Cash Last



Opportunity



•Understand the Barriers and Boundaries

Opportunity



•Understand the Barriers and Boundaries

YEAR 1


a business venture


YEAR 1


a business venture


Audience




ORWhat do I need

To know?

Audience




ORWhat do I need

To know?

Mike and Marc


Marc – Chain of retail locations selling long burning light bulbs.

SB113 Course Overview Risk, Resource and Opportunity Marc Compeau – 8/23/04.

Documents

SB113 Course Overview Risk, Resource and Opportunity Marc Compeau – 8/23/04.