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Screening Ideas for Opportunities

Idea vs. Opportunity. A new business idea is a new concept for a product or serviceA thoughtA notionAn ImpressionA new business opportunity is an idea that has commercial viability.AttractiveTimelyDurableAnchored in a product, service or business that creates or adds value for its buyer or e

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Screening Ideas for Opportunities

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    1. Screening Ideas for Opportunities Winning Ideas – How Can we Identify Them?

    2. Idea vs. Opportunity A new business idea is a new concept for a product or service A thought A notion An Impression A new business opportunity is an idea that has commercial viability. Attractive Timely Durable Anchored in a product, service or business that creates or adds value for its buyer or end user

    3. Distinguishing between Idea and Opportunity It is necessary to screen ideas to: Avoid wasting time and effort on ideas with little or no economic potential Identify challenges to technical or financial feasibility

    4. Idea Technical Screening It is the idea technically feasible? Existing/proven or new technology? Production – existing or proven process? Prototype Conceptual drawing only? Physical representation? Working? Product testing Required? Consumer response testing required?

    5. Financial Feasibility Screening Guidelines Product/service is unique It will meet an unmet need for a large number of customers Revenue stream will be durable and greater than costs Projected rate of return on invested capital will be sufficient to justify the risks

    6. Other Useful Characteristics Product or Service Not easily copied No competing products or substitutes The Market Growing market Large market Motivated buyers Buyers have money

    7. Other Useful Characteristics … Capital Investment Low Operating Costs Mostly variable Variable costs per unit are small compared to selling price per unit

    8. Other Useful Characteristics … Payback Short Operating Cycle Short time from time of production till cash from sales is received

    9. Other Issues Management Team (if relevant) Time to get proof of concept…and evidence of market (size, strength) Production complexity Intellectual property protection Barriers to entry/competitors

    10. Project Risk Issues Technical risks Market risks Competitive risks Regulatory risks Financial risks

    11. Analyze an Idea Idea You plan to license Safeway Inc. to use your radical new, patented invention that will add a new revenue stream for the company and reduce waste at the same time. This invention takes daily waste products from the deli, bakery and perishable goods sections, processes that waste and produces a variety of packaged animal foods and compost material with a long shelf life that can be return shipped in Safeway trucks back to the main warehouse for distribution and sale to specialty pet-food shops.

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