Showing all articles tagged: venture-development



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


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.

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Fuzzy-Front-End


The beginning of most any new venture is full of fuzzy ideas and concepts. With work, a venture vision will become clear over time.

Stages of Enterprise Evolution ...

  1. Opportunity ... gap in market, new technology ... maybe, just maybe, we can do something here
  2. Idea ... clear problems, viable solutions ... hmmm, looks like there is something here
  3. Concept ... viable strategies for earning a profit solving customer problems better than the competition
  4. Venture ... viable innovation concept (product, service, process, position, method); team (innovator, entrepreneur, money manager); resources (people, places, things, time, money)
  5. Organization ... team, roles, clear strategies,
  6. Company ... legal formation, pre-sales, unstable financials (raising funds)
  7. Business ... low-hanging fruit, sales, customers, stable, positive EBITDA, viable business model
  8. Enterprise ... scale, scope, markets, growth, significant EBITDA, defined task and assignments, employees
  9. Institution ... significant market share, significant industry position, re-invention, continual innovation
  10. Tombstone ... the cows have run out of milk

An alternative is for a venture to become a not-for-profit organization.

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New Venture Checklist ...

Can we answer these 13 lucky questions about our new business venture ...

1. Who is our customer? This can be more than one group of people.

2. What other solutions do our customers have to their problem for which you have developed a product? Our response should include products as well as paths of action.

3. Compare our solution/product to our customers’ other choices. What do we have that is better than the alternatives?

4. If our product is distinguishable from other solutions available to our customers, what are the key reasons they would buy it (price, quality, features, etc.) from us?

5. If our product is indistinguishable from other solutions in the market, why would our customers buy it (price, ease of acquisition, affinity for your business, etc.) from us?

6. What would make our entry into our targeted market difficult (expense, other patents, no established brand, etc.)?

7. Will our product's usefulness be superseded by developments in our industry? If so, how will we keep pace with the market?

8. In order to grow our business within our selected market, will we have to develop other products? Explain the answer either way.

9. How will we prevent our product from being copied?

10. Can our product be produced and sold for a competitive price? If so, how?

11. What is the best method for selling to our customers? Keep in mind that our selling costs need to be low enough to allow us to make a reasonable profit.

12. If our venture's start-up expenses will require more money than we can provide, what will be the source of this additional money?

13. Are we entering a growing or shrinking market? If our market isn’t growing, how will we capture and preserve market share?



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Brainstorming ...

The best way to have a good idea is to have lots of ideas from which to choose!

  1. Brainstorming is a team sport ... support your team members!
  2. No criticism ... no "devil's advocates" allowed!
  3. Anything goes … wild, crazy, impractical, ingenious ideas encouraged!
  4. Go for quantity, not quality, of ideas!
  5. All ideas encouraged!
  6. Piggyback, improve, combine ideas ... be an "angel advocate"!
  7. Record all ideas so nothing gets lost!
  8. Filter ideas later, not during the brainstorming session! This is a right-brain exercise!
  9. Set a time limit for the session, then stick to it!

Variation ... brainwriting: the general process is that, in a group, ideas are recorded by each individual who thought of them ... they are then passed on to the next person who uses them as a trigger for their own ideas.

(c) 2017 Jindrick ... 1.08


Jim Jindrick

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

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