Starting a Business: Ideas vs. Opportunities
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06/09/2012
Starting a Business:
Ideas vs. Opportunities
Special presentation by: Grupo Guayacán, Inc.
Who we are?
∗ Grupo Guayacán, Inc. is a non‐for‐profit organization
leading the development of the entrepreneurial
infrastructure in Puerto Rico
106/09/2012
Our entrepreneurial work
Over 15 years of experience….
experience
A proven Advanced Advanced
d d The largest
ecosystem startup
platform expansion: business
where your development:
Entrepreneurial development
ideas turn * Fellowships education conference in
into * Advanced modules with Puerto Rico.
businesses. Programs local and
international
resources.
“They say time changes things,
but you actually have to change
them yourself ”
Andy Warhol
206/09/2012
So…let’s get started!
Do you have a business idea?
Do you already run your own business?
What is entrepreneurship?
“ENTREPRENEURSHIP IS CREATING AND BUILDING SOMETHING OF VALUE
FROM PRACTICALLY NOTHING. THAT IS, ENTREPRENEURSHIP IS THE PROCESS
OF CREATING OR SEIZING AN OPPORTUNITY AND PURSUING IT, REGARDLESS
OF RESOURCES PRESENTLY CONTROLLED.”
‐ JEFFREY TIMMONS (RIP),
(RIP) BABSON COLLEGE
306/09/2012
The Idea Process
“Ideas are easy. It's the execution of ideas that
really separates the sheep from the goats.”
Sue Grafton
The Idea Process
Entrepreneurship is about passion,
determination and perseverance.
406/09/2012
Don’t Forget…. It’s all about
Attitude!
Entrepreneurs are made!
The making of an entrepreneur occurs
by accumulating the relevant skills,
know‐how, experiences and contacts.
IDEAS VS. BUSINESS OPPORTUNITIES
506/09/2012
1. Creates or adds value
∗ iPod by Apple
‐ Apple’s mission goes beyond selling a product, focusing instead in
providing a unique experience
‐ Apple recognized a problem with the portable music experience
and used their expertise to develop an innovative solution
‐ Apple Computers publicly announced in October 23,
2001 their portable music digital player – the iPod
‐ Designed by two hardware engineers
‐ Developed in less than 1 year
‐ It changed the way the you & the world listens to
music!
2. Solves a significant problem
∗ Transloc, Inc.
‐ Specializes in delivering real‐time location information to riders and
administrators of mass transit (traditionally a low tech industry).
‐ Founded by a young entrepreneur in North Carolina during his last
semester at NC State in 2004
‐ This product is utilized by cities and universities that have mass
transit systems
Joshua Whiton
Founder
26 years old
606/09/2012
3. Robust market
∗ Square.com
‐ Disruptive mobile payment system
‐ Accept credit card payments (ANYWHERE) with your mobile phone
‐ Co‐founded by Jim McKelvey and Jack Dorsey (founder of Twitter)
in 2009
‐ Processing $1 million in mobile
payments per day (techcrunch.com)
706/09/2012
How to create your business opportunity
∗ Think MONEY last, FIRST create the meaning.
If you find and shape a really big business
opportunity, money will find you (chase
you).
Opportunity attractiveness
Most Attractive Least Attractive
∗ “Disruptive innovation” “Sustaining innovation” •
∗ Recurring Revenues One time, erratic •
∗ Imperfect, fragmented, emerging Concentrated, mature, declining •
markets Not too small…but not
∗ Market big enough to be too big either •
interesting
∗ >30% growth h rates 10% or less •
∗ Leading Market Share (>25%) One of many 5‐10% or less •
∗ Low capital / variable costs High Capital/fixed costs •
∗ All star team Solo Entrepreneur, weak team •
∗ Clear Exit ‐ Liquidity No clear exit – low liquidity •
∗ Fits deep personal objectives In it for the money •
∗ “Stageable” Risk All at once/large investment •
Adapted from New Venture Creation – Jeff Timmons
806/09/2012
Organize your business opportunity
The elements of an Executive Summary
∗ Product / Service proposed
∗ Target Market and Customer
∗ Competitive Landscape
∗ Execution
∗ Management Team
∗ Business Model (Financial Projections)
∗ Risk Analysis
Executive Summary facts:
* Less than (5) pages
* Max. 1,800 words
Product / Service proposed
∗ Think about:
1. The key benefits for your customer
2. The solution’s value proposition to the customer
3. Why would the customer be willing to pay the price
yyou are asking?
g
906/09/2012
1006/09/2012
Target Market & Customer
∗ Think about:
1. Size, growth rate and industry attractiveness
2. What is your target (niche) entry market and why?
3. Is it an emerging market? Fragmented? Chaotic? Or is it
mature and dominated by a few larger competitors?
* Small, but high growth markets with fragmented
competition are potential winners!
4. Name and/know your customers – REAL ONES! – and
how will you reach them!
5. Do they have money to spend?
Competitive Landscape
∗ Think about:
1. Know your competition (direct and indirect)
* Why do people buy from them? What are their key
strengths and weaknesses? What does it cost them to
produce or deliver the services?
2. Position your business in a very persuasive and compelling way
* Why is your position sustainable over the medium/long term?
* Why won
won’tt competitors be able to copy you or create a
better product?
* Why will customers prefer you versus your competition?
1106/09/2012
Execution
∗ Think about:
1. How are you “staging” the development of your
business?
2. What are the critical execution steps in each stage
necessary to take our business forward?
3 What
3. Wh t are the
th key
k resources you need d or have
h or
control?
4. Have you interviewed customers? Have you
recruited the team? Have you tested the market?
Have you talked to distribution channels?
Management Team
∗ Think about:
1. What is the Lead Entrepreneur’s background
* Accomplishments, education, experience & skills
1. Do each of the team members background, accomplishments,
etc. make them uniquely qualified for their specific role on the
team?
2. Where are the “gaps” on the team? What is the plan for filling
the gaps?
1206/09/2012
“ The best reason to
start an organization is
to make meaning; to
create a p
product or
service to make the
world a better place”
Guy Kawasaki
EnterPRize Business Plan Competition 2012
It is a proven platform where your ideas can turn into
real businesses. ∗ You don’t have to do it alone
∗ Eco‐System
∗ Team Building
∗ It is designed to attract anyone
∗ Scientists, engineers, students and professionals
∗ Helps validate and practice
∗ Easy, risk‐free process
∗ Confidential (no embarrassment))
∗ Imagine the possibilities…
1306/09/2012
EnterPRize Business Plan Competition 2012
They did it!
EnterPRize Business Plan Competition 2012
Prizes:
$25k – 1st Place
$15k – 2nd Place
$10k – 3rd Place
Deadline: September 27th, 2012
www.enterprizepr.com
www enterprizepr com
EVERTEC
Transactional Facebook.com/enterprizepr
Technology Track ‐
$25k
Doral Top Woman
Entrepreneur – $5k
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