Vernon’s Razor©2008 Patrick Vernon

BUSI 701Artistic Entrepreneurship

1st Class

Vernon’s Razor©2008 Patrick Vernon

How We’ll Navigate this Class

In Class• Vernon’s Razor

– Lectures– Profiles

• Applied Improv• Coordination of projects• Guests

Out of Class• Readings

• Profiles

• Industry analysis

• Venture feasibility or startup plan

Vernon’s Razor©2008 Patrick Vernon

Danger

• Focus– In the classroom– Working on your project– Course Website

• Expectations– Relevant “data” hard to find– Analysis only goes so far

Vernon’s Razor©2008 Patrick Vernon

Imagine: Medieval Europe

WeatherZillow

Vernon’s Razor©2008 Patrick Vernon

• Definitions:

Quick Intro: Vernon’s Razor

Vernon’s Razor©2008 Patrick Vernon

Venture

• An undertaking involving chance, risk, or danger; especially a speculative business enterprise

• Speculation: an investment that is very risky but could yield great profits;

• A commercial undertaking that risks a loss but promises a profit

Vernon’s Razor©2008 Patrick Vernon

Entrepreneurship

• 18th century: bearing the risk of buying at certain prices and selling at uncertain prices

• Today (my definition): taking good ideas, assessing the value they could create, and building an organization (people and systems) to distribute that value

Vernon’s Razor©2008 Patrick Vernon

Entrepreneurship

• Taking good ideas, assessing the value they could create, and building an organization to distribute that value

• Begs the questions: what value can you create? And is it enough to sustain a new venture?

Opportunity

Risk

Vernon’s Razor©2008 Patrick Vernon

Go or No-Go?

Vernon’s Razor

Vernon’s Razor©2008 Patrick Vernon

Go or No-Go?

Vernon’s Razor©2008 Patrick Vernon

Vernon’s Razor1. Value Proposition2. Market Potential3. Return4. Team5. Competitive Advantage6. Business Model7. Customer Pain

DefiningOpportunity

MinimizingRisk

Vernon’s Razor©2008 Patrick Vernon

Vernon’s Razor

DefiningOpportunity

MinimizingRisk

1. What is my value proposition?

2. How big could this get?

3. What’s in it for me?

4. Why me?

5. Can I compete?

6. Can this thing make money?

7. How bad do they want it?