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Not all ideas are Business Ideas

Not all ideas are Business Ideas. Igniting Your Business Ideas. What makes a good business idea?. It starts with a good idea. Good ideas fill a void or solve a problem:. How?. It makes somebody... Happier Healthier Richer More attractive ...at a price they are willing to pay. But.

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Not all ideas are Business Ideas

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  1. Not all ideas are Business Ideas Igniting Your Business Ideas

  2. What makes a good business idea? It starts with a good idea. Good ideas fill a void or solve a problem:

  3. How? • It makes somebody... • Happier • Healthier • Richer • More attractive ...at a price they are willing to pay

  4. But... Great ideas alone don’t make great businesses!

  5. How is a great business idea different? • You have to consider more than just the idea • Micro level market attractiveness • Macro level market attractiveness • Macro level industry attractiveness • Sustainable advantage • Team

  6. Micro level market attractiveness Vs.

  7. Macro level market attractiveness Market size Short term market growth Long term market growth

  8. Macro level industry attractiveness Porter’s five forces: Threat of entry Supplier power Buyer power Threat of substitutes Competitive rivalry

  9. Macro level industry attractiveness Threat of entry • Is it easy or difficult for companies to enter this industry? • Cost • Specialist knowledge • Route to market

  10. Macro level industry attractiveness Supplier power • Do suppliers to this industry have the power to set the terms and conditions? • How many suppliers are there? • How transparent are they?

  11. Macro level industry attractiveness • Do Buyers have the power to set terms and conditions? • What are their alternatives? • How easy is it to find them? Buyer power

  12. Macro level industry attractiveness • Is it easy or difficult for substitute products to steal my market? • Think about the customer need Threat of substitutes

  13. Macro level industry attractiveness • Is the competitive rivalry intense? • Assess your competitors fairly. • If you know about them, they may well be smarter and better funded than you. Competitive rivalry

  14. Sustainable comparative advantage • Firstly, there must be an advantage (for your customers) • Better • Faster • Cheaper • Then, you have to sustain it.

  15. Sustainable comparative advantage • Proprietary elements • Patents • Trademarks • Trade Secrets • Superior organisational processes (Vs. ) • Business model is economically viable • Commitment to innovation

  16. “Best beats first” Jim Collins

  17. Team • Ability • Team as a whole • Find the gaps and fill them • Experience counts • Alignment • Commitment to the same goals • Passion • It will be hard

  18. Team • Network • How connected are you? • Suppliers to your business (and your competitors) • Distributors and customers (today and in the future) • Competitors and substitutes Names, titles, & contact information please. It’s not what you know, it’s who you know, so get networking!

  19. What makes a great business idea? A good idea – Somebody needs/wants it A good market – Large and growing A good industry – You can enter (with an advantage) A great team – Find the right people (they might not be your friends)

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