The University of Dayton FLYER PITCH Competition Defining the Problem and Framing it for the Judges www.GOUDAYTON.EDU/UDBPC

Entrepreneurs solve problems for people They identify an opportunity They figure out how to develop a business about that opportunity They persuade other people to provide resources for the new business The key thing about solving the problem is that it has to be worthwhile to everyone involved. Ideally, you solve a problem at a price that is profitable to you and your employees, that people feel is a good value.

What is an Opportunity? An Opportunity has four elements Newness (Product/Service/Process) Potential for profit/benefit/advantage Legitimized by society and stakeholders Technical feasibility DEF: An opportunity leads to the development of something new that society will accept, that has potential to be accomplished in a beneficial manner. An Opportunity must have all four elements Newness by itself is only a concept or idea. Lacking profit or potential means it isn’t worth pursuing If it isn’t technically feasible it is merely wishful thinking (but solving that can lead to an opportunity) Magic isn’t technically feasible, but would be very profitable—just ask J.K. Rowling

What do judges want to see in a problem?

What do Judges want to see? An idea they “can get” quickly --It will seem viable more easily. A problem that needs solving. The bigger/more severe, the better. A solution to the problem, that is profitable as well. This is the opportunity. What is the business model? A solution that can be expanded, replicated, scaled, or otherwise rolled out. This shows growth What is the key insight to the idea? It is what makes the idea really work—why it is clever, novel, useful We’ll touch on all of these with our coaching sessions.

Identifying the problem

Start with the problem to be solved Three questions to be asked Do people know they have a problem? Do they need education, are they busy trying to solve it, do they seek out solutions, but are dissatisfied? How important is it to them to be solved? How many people does it directly affect? Indirectly? How do people currently solve the problem? (the answer could be “they live without it”) List the current solutions, and describe their pros and cons Don’t start with the solution, or you’ll waste a lot of time. Once you have a list of how people currently solve their problem, ask one more question: What are the 3-4 key parts of the decision-making process (hint: price is normally one of them)? Those 3-4 key parts help frame the problem

Utility and problems Many problems are really about the hassle of having to make trade-offs The next slide categorizes three common trade-offs: time, space, money.

Time/space/cost: Going high and low People with MORE Time: Will DIY Will sell their place in line Will wait for a bargain Space Will buy in bulk Will not pay a premium Money Will pay for premium brand Will not wait—want it now Will pay for assembly Will pay for customization People with LESS Time: will seek shorter products Will pay a premium Will pay to jump the queue Space Will accept less features Might pay a premium Money Will wait Will DIY Will accept more commodity

What constraints exist? What types are they? Legal Financial Cultural Technical Tradition Each of the above can drive the three trade-offs