oppty eval_mullins 7 domain entrepreneurship
TRANSCRIPT
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Opportunity Evaluation
&
Discussions on B Plan
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Most businesses fail in less than two years
Fewer than 1% of the business plans submitted
to VCs get funded Business failures lead to huge collateral
damages
Failures are planned by lack of planning
Systematic screening Why?
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Mullins 7 Domain Framework
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1.Micro Level Market Assessment
a) Micro level questions about targetmarkets
b) Three ways to define market segments
c) Micro market test
Mullins 7 Domain Framework
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1.Micro Level Market Assessment
a) Micro level questions about target markets
Is there a target market segment in which we offer thecustomer clear and compelling benefits, at a price heor she is willing to pay?
Are these benefits, in the customers minds, differentfrom and superior in some wayto whats currentlyoffered by other solutions?
How large is this segment, and how fast is it growing?
Mullins 7 Domain Framework
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1.Micro Level Market Assessment
b) Three ways to define market segments
1. Demography
2. Geography
3. Customer Behavior
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1.Micro Level Market Assessment
c) Micro market test
What customer pain will your offering resolve? Will customers buy what you propose to offer? Who precisely are the customers? Do you have detailed accurate information about who
they are, where they live or do business or what theydo?
Are there other segments that could benefit from arelated offering?
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3. Macro level Industry assessment
a) Porters Five forces analysisb) The macro industry test
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3. Macro level Industry assessment
a) Five macro level questions to assess the industry
based on
Michael Porters five forces -
Threat of Entry, Supplier power,
Buyer power, Threat to substitutes, CompetitiveRivalry
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3. Macro level industry assessment
b) Macro Industry Test
What industry will you compete in? Define it carefully.
Based on all five forces, what is your overallassessment of this industry? Just how attractive orunattractive is it?
If your industry is a poor performer overall, are therepersuasive reasons why you will fare differently?
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4.Micro level industry assessmentThe Micro industry test:
Do you require proprietary elements - patents, tradesecrets and so on that other firms cannot likelyduplicate or imitate?
Can your business develop and employ superiororganizational processes, capabilities or resources thatothers would have difficulty in duplicating or imitating?
Is your business model economically viable i.e. canyou show that your company wont run out of cashquickly?
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6. The can you and your teamexecute? test
What are the few - only a handful, please criticalsuccess factors (CSFs) in your industry?
Can you demonstrate - in past deeds, not merewords that your team taken together can executeon each and every one of these CSFs?
Have you identified which CSFs your team is notwell prepared to meet, for which you need help infilling out your team?
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7. The connectedness test
Who do you and your team know across the
value-chain among your customers,suppliers, competitors and substitutes?
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Sharad Kamra
QUESTIONS ?