1 / 60

MBA 848A Launching the Venture I

MBA 848A Launching the Venture I. Ideas vs. Opportunities Patrick Vernon Associate Director and Adjunct Assistant Professor UNC Kenan-Flagler Business School. Introductions. LTV I and beyond You Me Textbook Course pack. LTV I. Intro to Eship

derek-decker
Download Presentation

MBA 848A Launching the Venture I

An Image/Link below is provided (as is) to download presentation 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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MBA 848ALaunching the Venture I Ideas vs. Opportunities Patrick Vernon Associate Director and Adjunct Assistant Professor UNC Kenan-Flagler Business School

  2. Introductions • LTV I and beyond • You • Me • Textbook • Course pack

  3. LTV I • Intro to Eship • Designed for you to attend sessions you want and to help form teams • Free agents are roaming

  4. LTV II • Intensive course, must have (or be on) team to handle workload • Lectures + coaching sessions • Application due 10/1; need a team • Two sections (MBA, cross campus) • Most applicants will be admitted • Need team by 10/1, LTV II starts 10/18

  5. Teams • All LTV II projects must be at least 2 people, at least 1 at UNC • “Free agents” are not co-founders • Possibility of MBA or MAC “consultant” • Lists of ideas and free agents will be posted after Labor Day • “Matchup” on 9/27

  6. LTV I Syllabus • Course website: www.vcic.org/848a • Schedule • Readings • PPTs

  7. Grading • Research binder • LTV II application and presentationor research project • Details TBA

  8. Introductions • LTV I and beyond • You • Me • Textbook • Course pack

  9. Who Are You?

  10. Who Are You? • Name • Department • Title or Degree • 10 words or less about idea or interests • Sector (Science, IT, Traditional, Social) • 30 seconds, please

  11. Who Am I? • Center for Entrepreneurship: 2003-present • Adjunct Assistant Professor • Associate Director • Classes • BUSI 505 Consulting to the Entrepreneurial Firm • BUSI 506 New Ventures Analysis • BUSI 701 Artistic Entrepreneurship • MBA 848A,B Launching the Venture I & II

  12. Who Am I? • UNC MBA 2001-03 • “Artistic entrepreneur” in Los Angeles: 1992-2001 • Released 4 CDs • Performed 500 shows • Traveled 150,000 miles 2000 1997 1995 1994

  13. www.vcic.org

  14. $50,000 in prize money • Two tracks: social and commercial • Idea pitch in February • Business plans due in March

  15. Introductions • Course syllabus • You • Me • Textbook • Course pack

  16. You will fail! • “They say” 9 out of 10 business fail • Or will you? Research shows: • 50% in 4 years are ongoing • 17% have ended but were considered a “success” • 2/3 succeed!

  17. PV’s Advice: Enjoy the Ride • What you think your venture is right now is likely very different than what it will end up being. • Ventures are organisms* and business plans are living documents. • There are many ways to define “success.” * Contiguous living systems

  18. Why be an entrepreneur? • Be your own boss • Pursue your own ideas • Get rich

  19. Successful Entrepreneurs • Passion • Customer Focus • Tenacity • Execution intelligence

  20. Common Entrepreneur Myths • Born with it • Gamblers • Motivated by money • Should be young and energetic • Love the spotlight

  21. Startup Types • Salary substitute • Lifestyle • Entrepreneurial/Innovative

  22. Introductions • Course syllabus • You • Me • Textbook • Course pack

  23. Entrepreneurship 18th century definition: “Bearing the risk of buying at certain prices and selling at uncertain prices”

  24. Entrepreneurship Today (my definition): “Taking good ideas, assessing the value they could create, and building an organization (people and systems) to distribute that value”

  25. Entrepreneurship Taking good ideas, assessing the value they could create, and building an organization to distribute that value Begs the questions: what value can you create? And is it enough to sustain a new venture? Opportunity Risk

  26. Introducing the Razor Go or No-Go?

  27. Go or No-Go?

  28. Razor • ValueProposition • Market Size • Return Potential • Team • Competitive Advantage • Business Model • Customer Pain Defining Opportunity Analyzing Risk

  29. Razor What is my value proposition? How big could this get? What’s in it for me? Why me? Can I prevent copycats? Can this thing make money? How bad do they want it? Defining Opportunity Analyzing Risk

  30. Go or No-Go?

  31. Iteration

  32. Analytical Framework • Analysis is limited • Think sports analysis, political analysis… • Related to but different than “opinion” • Frameworks are limited • SWOT, Porter’s Five Forces • Razor is limited, too, but can be very powerful on two levels

  33. Using the Razor • Feasibility Think like an investor, objectively looking at what a venture has and/or needs while making continuous Go/No-Go decisions (binary decisions based on too little information) • Strategy Based on objective “investor” analysis, focus on maximum value-adding strategies and make better-informed tough decisions

  34. Go or No-Go?

  35. Value Proposition • Make the world a better place • Articulate (describe in words) • First step towards quantifying *Prof. Zoller’s definition is more complex.

  36. Defining “Value” Not the same “value” as used by your grocery store.

  37. Value Proposition • Solve a problem • Better, faster, cheaper • Comparisons • Mantra • Value Network

  38. Rule #1 – Solve a Problem!

  39. Challenges with Solving Problems • Be careful to frame the problem as solvable for specific individuals or groups • “Global” problems do not often translate into specific solutions • Look for “pain points”: things that will motivate changes customer behavior

  40. Better, Faster, Cheaper* • Benefits • Market already exists • VP may be specifically quantifiable • Drawbacks • Usually limited to technology fields • May not be sustainable (e.g., Moore’s Law) • *Cheaper needs to be cost structure, not pricing

  41. “Rookie Mistake” • Cheaper is not just charging less • Don’t compete on price • You need a cost advantage(John buys lemons at the store; Jane has a lemon tree.)

  42. Using Comparisons • YouTube for NBC (Hulu) • Dave Matthews meets Van Morrison (The Zookeepers) • GPS for Surgeons • Cliffnotes for iPhones

  43. Kawasaki – Make Meaning • Increase quality of life • Right a wrong • Prevent end of something good • Guy Kawasaki, Make Meaning(2:37) • Make Mantra (5:00)

  44. Game Changers • Disruptive technologies • Difficult to describe value in words • Twitter, Facebook, Google, eBay, broadband, PCs, cell phones, answering machines, microwaves, cars, Not being able to articulate a value proposition does not mean you won’t create value.

  45. Challege for “Trend” Ventures • Restaurant or bar • Artist • Indie record label • Film production • Fashion • The Zookeepers college pitch Solve Problem Comparison Better, Faster, Cheaper Don’t overthink the value proposition if it doesn’t help you. Just use a simple description.

  46. It does mean that you’ll have difficulty quantifying your OPPORTUNITY, which will imply you will have difficulty making decisions about the amount of RISK you are willing to take.

  47. Value Network • Entrepreneurship: used to be “buy at once prices, sell at another” = simple value network • Compare that to the # of entities involved in creating value in an iPhone • We need to look at overall value creation and distribution

  48. Value Network • An overview of everyone who might be touched by your venture • The economy is too complicated to think of customers only as end-user (B2C) • Your challenge: identify who in the network gets the most value • B2B are often the best choice

  49. Why B2B? • Customers are expensive to acquire • Brands are very expensive to build • Higher value per transaction Judy Estrin: Business Model B2B (1:20)

  50. Band’s Value Network Booking Agents Musicians Clubs/ Venues Fans $$$ Performance $$$ Drinks ROCK BAND $$$ CDs RehearsalStudio MANAGER Band Website $$$ Downloads CD Mfg Record Labels Record Stores $$$ CDs $$$ CDs T-Shirt Supplier New Fans $$$ Performance WebsiteDesigner Festivals $$$ Admit Booking Agents

More Related