SB113 Course Overview Risk, Resource and Opportunity Marc Compeau – 8/23/04

“Do you have what it takes to be an entrepreneur?” The Aptitude Test

What is entrepreneurship? Assuming risk and managing resources in order to capitalize on recognized opportunity. What is “Intrapreneurship” ?

“Action without thought is wasteful, thought without action is foolish.”

4 Step Start Up Analysis Step 1. Audience assessment Step 2. Opportunity assessment Step 3. Resource Assessment Step 4. Risk Assessment

Mike and Marc Mike – Web based service providing home delivery of McDonalds food Marc – International Chain of retail locations selling super long burning light bulbs.

Step 1. Define your Audience Clearly define who your audience is- You? Investor? Mentor? Potential Partner? Potential Buyer? Customer?

Mike and Marc Mike – Web based service providing home delivery of McDonalds food Marc – International Chain of retail locations selling super long burning light bulbs.

“ I was seldom able to see an opportunity until it ceased to be one.” – Mark Twain

Step 2. Analysis of the Opportunity Opportunity recognizers vs. Opportunity Shapers Market demand is a key ingredient to measuring opportunity Let the customer take you to the opportunity Ideas are a dime a dozen, opportunities are few and far between

Opportunity Describe the spending habits of your primary target audience vs. tell me about your competition. What benefits and attributes will your customer value the most? What are the financial outcomes of your competitive advantage? Opportunity = 3 M’s; Market demand, Market size and structure, Margin analysis

Opportunity How will your business solve your customer’s problem? How will your customer view your solution as different from your competitor’s solution?

Opportunity Know the barriers to, and boundaries of, your opportunities.

Mike and Marc Mike – Web based service providing home delivery of McDonalds food Marc – International Chain of retail locations selling super long burning light bulbs.

Step 3. What are your Resource requirements? Understand and use resources, but don’t be driven by them. Resources – Minimize and Control vs. Maximize and Own

Resources Some experts feel you are under investing if you are profitable Resources are the best place to unleash creativity Think cash last / Bootstrapping first

Resource Team: What’s more important, the team or the opportunity? Which would you prefer: A team with a B idea or B team with an A idea?

Resources – ask yourself these questions; What makes a great follower? Are you a great follower? Great leaders understand how to be a follower

Resources Demonstrate your motivation to excel Demonstrate your commitment and determination Demonstrate your tolerance of risk, ambiguity and uncertainty Demonstrate your awareness of team locus of control Demonstrate Adaptability, leadership, communication

Mike and Marc Mike – Web based service providing home delivery of McDonalds food Marc – International Chain of retail locations selling super long burning light bulbs.

Step 4. Understand the Risk You have no strategy until you have said no to several opportunities Look for “Risk reducers”, how can I get others to accept a portion of my risk? Intelligent risk always pays off.

Mike and Marc Mike – Web based service providing home delivery of McDonalds food Marc – International Chain of retail locations selling super long burning light bulbs.

Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need to know? Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need to know? Move your idea through the four step analysis

Opportunity Define the Opportunity Know the Opportunity Understand the Barriers and boundaries Opportunity Define the Opportunity Know the Opportunity Understand the Barriers and boundaries Move your idea through the four step analysis YEAR 1 Students launch, run, and close a business venture “Just-in-time” classroom learning YEAR 1 Students launch, run, and close a business venture “Just-in-time” classroom learning Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need To Know? Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need To Know?

Resource Minimize and Control Be creative Cash Last Demonstrate what Makes you valuable Focus on the Team Resource Minimize and Control Be creative Cash Last Demonstrate what Makes you valuable Focus on the Team Move your idea through the four step analysis Opportunity Define the Opportunity Know the Opportunity Understand the Barriers and boundaries Opportunity Define the Opportunity Know the Opportunity Understand the Barriers and boundaries YEAR 1 Students launch, run, and close a business venture “Just-in-time” classroom learning YEAR 1 Students launch, run, and close a business venture “Just-in-time” classroom learning Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need To know? Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need To know?

Move your idea through the four step analysis Risk Strategy includes Passing up Opportunities Look for risk Reducers Intelligent risk Always pays off Risk Strategy includes Passing up Opportunities Look for risk Reducers Intelligent risk Always pays off Resource Minimize and Control Be creative Cash Last Demonstrate what Makes you valuable Focus on the Team Resource Minimize and Control Be creative Cash Last Demonstrate what Makes you valuable Focus on the Team Opportunity Define the Opportunity Know the Opportunity Understand the Barriers and Boundaries Opportunity Define the Opportunity Know the Opportunity Understand the Barriers and Boundaries YEAR 1 Students launch, run, and close a business venture “Just-in-time” classroom learning YEAR 1 Students launch, run, and close a business venture “Just-in-time” classroom learning Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need To know? Audience Who am I interested in persuading? What do they already know? What do I think they Want to know? OR What do I need To know?

Mike and Marc Mike – Web based service providing home delivery of McDonalds food Marc – Chain of retail locations selling long burning light bulbs.