Oppty Eval_Mullins 7 domain ENTREPRENEURSHIP

7/30/2019 Oppty Eval_Mullins 7 domain ENTREPRENEURSHIP

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Opportunity Evaluation

&

Discussions on B Plan


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Most businesses fail in less than two years

Fewer than 1% of the business plans submitted

to VCs get funded Business failures lead to huge collateral

damages

Failures are planned by lack of planning

Systematic screening Why?


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Mullins 7 Domain Framework


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1.Micro Level Market Assessment

a) Micro level questions about targetmarkets

b) Three ways to define market segments

c) Micro market test



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a) Micro level questions about target markets

Is there a target market segment in which we offer thecustomer clear and compelling benefits, at a price heor she is willing to pay?

Are these benefits, in the customers minds, differentfrom and superior in some wayto whats currentlyoffered by other solutions?

How large is this segment, and how fast is it growing?



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b) Three ways to define market segments

1. Demography

2. Geography

3. Customer Behavior



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c) Micro market test

What customer pain will your offering resolve? Will customers buy what you propose to offer? Who precisely are the customers? Do you have detailed accurate information about who

they are, where they live or do business or what theydo?

Are there other segments that could benefit from arelated offering?



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3. Macro level Industry assessment

a) Porters Five forces analysisb) The macro industry test



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3. Macro level Industry assessment

a) Five macro level questions to assess the industry

based on

Michael Porters five forces -

Threat of Entry, Supplier power,

Buyer power, Threat to substitutes, CompetitiveRivalry



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3. Macro level industry assessment

b) Macro Industry Test

What industry will you compete in? Define it carefully.

Based on all five forces, what is your overallassessment of this industry? Just how attractive orunattractive is it?

If your industry is a poor performer overall, are therepersuasive reasons why you will fare differently?



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4.Micro level industry assessmentThe Micro industry test:

Do you require proprietary elements - patents, tradesecrets and so on that other firms cannot likelyduplicate or imitate?

Can your business develop and employ superiororganizational processes, capabilities or resources thatothers would have difficulty in duplicating or imitating?

Is your business model economically viable i.e. canyou show that your company wont run out of cashquickly?



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6. The can you and your teamexecute? test

What are the few - only a handful, please criticalsuccess factors (CSFs) in your industry?

Can you demonstrate - in past deeds, not merewords that your team taken together can executeon each and every one of these CSFs?

Have you identified which CSFs your team is notwell prepared to meet, for which you need help infilling out your team?



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7. The connectedness test

Who do you and your team know across the

value-chain among your customers,suppliers, competitors and substitutes?



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Sharad Kamra

[email protected]

QUESTIONS ?

Oppty Eval_Mullins 7 domain ENTREPRENEURSHIP

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