Venture Attributes（一）.pdfVIP

Venture Attributes Venture Attributes A. INNOVATION 1. Is there a new combination? Discovery of Entrepreneurial Opportunities • Understanding entrepreneurial discovery is a factor of market imperfections: Excess Demand without supply; Excess Supply without Demand • Understanding discovery sources: Scientific and Circumstantial • Scientific invention I II: utilizes scientific discovery source to create opportunities with excess demand or excess supply • Observation: utilizes circumstantial discovery source (knowledge of time, place circumstance) to create opportunities with excess demand • Coordination: utilizes circumstantial discovery source (knowledge of time, place, circumstance) to create opportunities with excess supply New Combination Types: • New product/service or improved product/service • New method of production • Conquest of a new source of supply of raw materials or components • Reorganization of an industry/market 2. Is there a product/market match (PMM)? • Will you buy it? Will your friends buy it? Will a focus group of customers buy it? Is there a purchase order or a commitment to buy from your customers? • If there is no PMM then you have a research project, hobby, or charity. B. VALUE 3. Is there a benefit to customers beyond the price paid (net buyer benefit)? Perceptions of the customer and managing expectations determine NBB. 4. Are there sufficient margins? (anything below 20% pretax profits is not attractive business) 5. Is there sufficient volume? (depends on the absolute size of the margin and the objectives of the venturer) C. PERSISTENCE (link between market and venture) 6. Is it repetitive? 7. Is there a long term need? 8. Get your ducks in order before you plu