BSM Week 3
46 flashcards
- Indentification of opportunity
- Where do business ideas come from
- Opportunity
- ______ exists when product can cause profit and customer relationships can be formed, emerges from economic, social, regulatory, technology changes
- New innovations
- Development of new technologies, process, or businesses can transform existing markets or start new markets
- Market inefficiencies
- Mature companies falling behind in changes in business environment
- Societal Changes
- changes in behaviour, attitude, values, demographics
- Regulatory changes
- changes to policies, laws, regulations
- Information corridor
- subconcious usage of past knowledge used to categorize new information, used to identify opportunity
- Opportunity Recognition Stage 1
- Preparation
- Opportunity Recognition Stage 2
- Incubation
- Opportunity Recognition Stage 3
- Insight
- Opportunity Recognition Stage 4
- Evaluation
- Opportunity Recognition Stage 5
- Elaboration
- Preparation
- Background information and prior knowledge, development of expertise
- Incubation
- Contemplation of idea or problem
- Insight
- Opportunity is recognized
- Evaluation
- Insight is analyzed, studied, market analysis, etc.
- Elaboration
- Moving a successful concept forward, planning
- Opportunity Recognition
- 1/3 can be based on supply in demand, market gaps, easily observed
- Opportunity discovery
- Requires exploration prior to discover, may have gaps in supply and demand, ex. new tech, no clear application
- Opportunity creation
- no obvious supply and demand, idea for useful product for no known need, uncertainty
- Entrepreneurial Alertness
- noticing opportunities without actively searching
- Generating business ideas
- From previous employment, hobbies, casual observation, deliberate search, friends, social networks, government agencies and departments, creative thinking
- Inventor shows
- Provide investors and manufacturers with place to meet to discuss potential products and services, anual
- Tradeshows
- Several times a year, examine latest products, services, trends, competitors, networking
- Conventions and conferences
- Panels, speakers, films, exhibitions
- Brainstorming
- Developing creative solutions to problems
- Business opportunity screening model
- BOSM
- Innovation BOSM
- Potential to lead market, solve problems, protect property, gain advantage
- Strategy BOSM
- Method to create and grow businesses, exit, high value and margains, superior model
- People BOSM
- Quality of CEO, management, recruitment potential
- Investment BOSM
- Potential for high returns and profitability, risk, cash flow, break even
- Learning BOSM
- CEO confidence in vision, potential, incremental learning potential, ethicality
- Sole proprietorship
- Owned and operated by single individual, simple, difficult to sell
- Partnership
- 2 or more people, shared ownership, revenue, expenses, responsibilities, costs, risks
- Small business
- less than 100 employees, usually some capital investment up front,
- Corporation
- Business structure legally seperate from its owners who become its shareholders, protecting them from certain liability
- Franchises
- Buying right to use business model developed by someone else
- High growth business
- Has capacity to grow rapidly at sustained rate, potential
- buying existing business
- alternative to developint new business
- Value proposition canvas
- Visualizes, designs, and tests how value is made for customers
- customer profile
- functional, social, emotional aspects of customers to appeal to to meet job
- Pains
- Bad outcomes, risks, related to customer job
- gains
- Positive outcome to achieve, benefits, aspirations
- Value map
- relation between pain relievers, gain makers, design, test, value proposition till you find out what works for customers
- Customer jobs
- what customer wants done, gap to meet
- Business model canvas
- Essentials of business, value map