1.Common Misconceptions and Realities of Great Ideas
Misconception
1. Ideas just appear out of
nowhere.
2. There are no stupid ideas.
3. Customers will tell you
what to do if you’ll only
listen.
Reality
1. The most successful idea
generators do so in a
structured, systematic way.
2. The most powerful ideas
often are resoundingly bad,
at first glance.
3. Although customers can
help identify unmet needs,
there’s much more involved
in making an idea workable.
2.Common Misconceptions and Realities of Great Ideas
Misconception
4. We can generate all the
ideas we’ll ever need if we
just sit down at a meeting.
5. Getting ideas isn’t the
problem; implementing
them is.
Reality
4. Great ideas are best
shaped through an ongoing dialogue.
5. The problem is not
screening carefully the
ideas that are generated.
3.Potential Sources of Entrepreneurial Ideas
Personal interests or hobbies
Work experiences, skills, and abilities
Products and services
Familiar ones
Unfamiliar ones
External environmental opportunities in these sectors
Technological
Societal culture
Demographics
Economic
Legal-political
4.Potential Sources of Entrepreneurial Ideas
Limitations of what’s currently available
New and different approaches
Advances and breakthroughs
Unfilled niches
Trends and changes
5.Why Idea Evaluation Is Important
Minimize Risk While
Maximizing Return
Decide What
Is Important
Identify Strengths
and Weaknesses of
Ideas
Make Best Use of
Limited Resources
6.How to Evaluate Ideas
Do you have the capabilities for what you’ve selected?
Are you ready to be an entrepreneur?
Are you prepared emotionally to deal with the stresses and challenges of being an entrepreneur?
Are you prepared to deal with rejection and failure?
Are you ready to work hard?
Do you have a realistic picture of the venture’s potential?
Have you educated yourself about financing issues?
Are you willing and prepared to do continual financial and other types of analyses?
7.Evaluating Marketplace Potential
Who are the potential customers for your idea: who, where, how many?
What similar or unique product features does your proposed idea have to what’s currently on the market?
How and where will potential customers purchase your product?
Have you considered pricing?
Have you considered how you will need to promote and advertise your proposed entrepreneurial venture?
8.Feasibility Studies
Issues to Consider:
Introduction
Historical background
Description of product or service
Accounting considerations
Management considerations
Marketing considerations
Financial considerations
Legal considerations
Tax considerations
9.Getting Competitor Information
Identifying
Strategic Groups
Quality
Geographic
Scope
Product Line
Breadth—Depth
Market
Share
Product
Characteristics
Profits
Other
Relevant Factors
Price
10.Researching Competitor Information
What types of products or services are competitors offering?
What are the major characteristics of these products or services?
What are their products’ strengths and weaknesses?
How do competitors handle marketing, pricing, and distribution?
What do they attempt to do differently from other competitors?
Do they appear to be successful at it? Why? Why not?
What are competitors good at? What are their competitive advantages?
What are they not good at? What are their competitive disadvantages?
How large and profitable are competitors?
11.Ethically Questionable Competitive Intelligence Methods
Trying to get proprietary information by bribing individuals who once worked for competitors
Questioning competitors’ employees at technical meetings by disguising who you are and whom you work for
Going on false interviews with a competitor
Hiring a competitor’s employee(s) away to obtain specific know-how or trade secrets
Secret direct observation of a device or piece of equipment
Conducting false job interviews with competitors’ employees
12.Competitor Analysis Matrix
Competitive
Information Business 1 Business 2 Business 3 Business 4
Products or
Services Offered
Product
Strengths
Product
Weaknesses
Competitive
Advantage(s)
Competitive
Disadvantage(s)
Other Competitive
Information
13.Possible Financing Options
Common Options:
Personal resources
Angel investors
Financial institutions
Unusual sources
Venture capitalists
Public offering
Business development programs
14.Entrepreneurs’ Personal Resources
Common Resources:
Personal savings
Home equity
Proceeds from the sale of personal assets
Life insurance policy loans
Personal loans
Credit cards
Loans from family or friends
15.Business Development
Business Development Programs:
Small Business Investment Companies (SBICs)
Small Company Offering Registration (SCOR)
Business Incubators
Angel Capital Electronic Network (ACE-Net)
16.Evaluating Financing Options
Personal Control Personal Risk Potential Reward
Personal Resources High High High
Financial Institutions Low to medium Low Low to medium
Venture Capitalists Low to medium Low Low to medium
Angel Investors Low to medium Low Low to medium
Public Offerings Low Low Low to high
Business Development Low to medium Low Low to medium
Programs
Unusual Sources Low to high Low Low to high
17.Vision and Mission
Vision: An overall picture of where the entire organization would like to be in the future
Mission: A statement of what the various organizational units do and what they hope to accomplish in alignment with the organizational vision
18.ISE Department
Vision: To be a world-class undergraduate and graduate program in Industrial and Systems Engineering that focuses on the integration and management of resources and knowledge for the manufacturing and service industries.
19.ISE Department
The mission of the ISE Department is to teach, conduct research, and serve the community through professional and technology development. The ISE Department intends to constantly increase educational quality and opportunity for students that foster responsibility, creativity, leadership, the habit of individual inquiry, and the capacity for lifelong learning. The ISE Department is committed to providing graduates who improve the quality of life and meet the needs in the manufacturing and service industries. The ISE Department strives to attain a level of research and scholarly productivity befitting a major research university and warranting national and international recognition for excellence.
20.Components of Organizational Vision and Mission Statements
Markets
Technology
Concern for
Survival, Profits,
and Growth
Products or
Services
Self-concept
Concern for
Public Image
Concern for
Employees
Philosophy
Customers
21.Purposes of a Business Plan
Development tool for organizational founders
Vision and mission clarification
Planning and evaluation guidelines
Tool for securing financial resources
Tool for guiding growth
22.Business Planning
What the Business Plan Should Include:
Executive Summary
Analysis of Opportunity
Analysis of Context
Description of Business
Financial Data and Projections
Supporting Documentation
23.Writing a Successful Business Plan
10 Characteristics:
1. Clear, realistic financial projections
2. Detailed market research
3. Detailed competitor research
4. Descriptions of key decision makers
5. Thorough summary
6. Proof of vision
7. Good formatting and clear writing
8. Brief and concise
9. Demonstrates the importance of the bottom line
10. A plan that captures “you”