CSF/CQ Mashup: Firm Foundation Building Block Checklist ...

A good business venture plan will address each of the issues in this "checklist". A good business venture planning team will have good strategies and tactics to address each of these areas. A healthy business venture will continually address and iterate and improve upon each of these areas ... CSF/CQ Mashup

Characteristics of an Innovation

  • Relative advantage
    • Perceived superiority of innovation over current solution
  • Compatibility
    • Perceived fit of an innovation to adopter’s existing practices, values, experiences
  • Complexity
    • Higher degree of perceived complexity, slower the rate of adoption
  • Trialability
    • Experience the innovation before adopting it
  • Observability
    • Extent to which better benefits of the innovation are visible to others within the population of potential adopters
  • Newness


Purpose of a Marketing Brochure

  1. Easy way to test a new product, service, solution idea
  2. Easy to iterate a concept
  3. Easy to put in front of prospective customers for feedback: test, measure, learn
  4. Customer can become part of the design process ... pencil and paper and eraser
  5. Inexpensive ... time, money, resources
  6. Works for most any idea concept
  7. Flexible "size" (number of pages) although the fewer the better
  8. Can incorporate in the venture business plan, summary


Basics of Business ... (HITO Chart)

basics of business.jpg

Environment: competition, industry, market space
Value capture: revenue minus expenses (cogs, opex, itda) equals profit
Value proposition: why the solutions from this venture are better than the competition and other alternatives






Predicting the Probability of Venture Success ...

It is extremely important to identify the risks of a venture because even in optimal conditions, many elements are required for success. Take the following scenario:

  1. Management is capable and motivated 90%
  2. Market demand is as expected 90%
  3. Production is scaled up as planned 90%
  4. Competition is held at bay and IP is defendable 90%
  5. Liability and litigation is avoided 90%
  6. Company has sufficient capital 90%
  7. Existing customers are able and willing to pay 90%

Success Probability .9 x .9 x .9 x. 9 x .9 x .9 x .9 = 48%

In the event that even one of these risks is not assessed correctly, and the chance of success is actually 50 percent, the overall probability success is reduced to 27 percent. Clearly every risk must be kept to a minimum.

This is a good top-level checklist for early venture validation research.

170913B

Hint: Buy Low ...


Hint 2: The magic is in the comma...









Jim Jindrick

You can send Jim Jindrick a message here: TextJim.VentureNotebook.com Jim's books are available here: Amazon.com/author/JimJindrick

Click on a Subject ...