CNVC Intro: Thinking about Your Business
Bob Rosenberg
October 21, 2013
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Developing an Idea
There are no bad ideas. But there is -• Bad timing (1988/RJ Reynolds smokeless cigs; 1993/Newton)
• Competition (Betamax and VCR)
• Poor market identification (Harley Davidson perfume; New Coke)
• Poor execution (Ford Edsel; Microsoft Vista)
• Product not living up to hype (Segway; Star Wars trilogy 2)
• Lack of focus, differentiation (Zune; Satisfries?)
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Developing an Idea
Sometimes you have to discover your own product (pivot):
Michael Faraday developed compressed ammonia (1820)
Ford introduced the Falcon (1960)
Avon Skin So Soft (1961)
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Developing an Idea
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Be brave
Focus on pain
Test idea with others and listen
Evolve, change, pivot
Wash, rinse, repeat
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Building a Team
Focus on diversity
What core competencies will you need?
Flexibility – teams grow, shrink, change players
Focus on honesty and building good working relationships
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Elements of Business Pitch (Feasibility)
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Introduction: Product, what does it do, how it solves the problem
Value proposition: Target customers, why you win against competition
Revenue model: who pays, how you maintain margins
Cost to make, market, sell, service, upgrade
Market size
Marketing: who are the buyers, how will you reach them, and how will you
get them to buy
Partner strategy
Team: explain why your team can implement the opportunity
Financial analysis
Funding : How much money do you need now, how you will use it, what you
will achieve?
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Final Slide
Questions?
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