My work as an open practitioner for the Open Education Europa webinar 15 Dec 15
The DEC Education: Will it Work?
-
Upload
the-dallas-entrepreneur-center -
Category
Business
-
view
194 -
download
0
description
Transcript of The DEC Education: Will it Work?
![Page 1: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/1.jpg)
Will it workWalking through the process of evaluating an idea for feasibility
![Page 2: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/2.jpg)
Hi, I’m Stewart Youngblood
• Program Director Tech Wildcatters
• B2B Forbes Top 10 seed accelerator
• Co-Founded Obvious Apps
• Specialties: Angel Investment, Venture Capital, Finance
![Page 3: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/3.jpg)
Agenda
• Technical Feasibility• Evaluate Market
Opportunity• Competitive Analysis• Customer Validation• Develop Cost Model• Revenue Model• Scalability• Cash and Financing• Team and Capabilities• Pitches
![Page 4: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/4.jpg)
Technical/Functional Feasibility
• The first step in any ideation process is evaluating whether something is technologically or functionally feasible (but actually, there’s a step 0!)
• Commit 1-2 hours to research online or through industry experts on whether your concept can actually be achieved
• Be wary of common mistakes (i.e. perpetual motion machine)
![Page 5: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/5.jpg)
Exercise #1 - Idea Feasibility
• Discuss: Head’s Up display for driver of motor vehicle with GPS, phone/text, weather, and other information. Aftermarket product that uses modern LED/OLED tech to create banner across top of front windshield and car’s battery for operation
![Page 6: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/6.jpg)
Evaluate Market Opportunity
• Define where your idea fits into a market category and research solutions that exist
• Decision criteria depends on players in the market, total size of market needed for you to feel comfortable
• Build a bottom’s up case (number of users/customers times price)
![Page 7: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/7.jpg)
Competitive Analysis
• Evaluate size, scale, reach, key features, and pricing for top market owners and put into matrix
• Beware, sometimes no competition is NOT a good thing
• Find a market where competition lacks key features or customer pain
![Page 8: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/8.jpg)
Exercise #2 - Competition
• Create a matrix of competitive solutions:
• GPS
• Smartphones
• Imbedded systems (i.e. Ford’s Sync)
![Page 9: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/9.jpg)
Customer Validation
• Use competitive matrix to develop a set of key features and differentiators
• Contact as many potential customers you can via email or phone to generate feedback on key features and potential prices
![Page 10: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/10.jpg)
Exercise #3: Customers
• Identify 3-4 key feature benefits and discuss among the group how you would acquire customer feedback
• Split into teams and interview other teams for feedback on your key benefits/value proposition
![Page 11: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/11.jpg)
Develop Cost Model
• Research potential manufacturing or development cost of your idea and begin to build a cost model
• Don’t forget to add 10-20% to original estimates
• Include shipping, packaging, delivery, support, and other costs
![Page 12: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/12.jpg)
Revenue/Business Model
• Determine how you will sell this product and make money in order to determine a price point (see cost model) and ensure profitability
• Evaluate 2-3 revenue models in order to test assumptions and generate highest rate of return
![Page 13: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/13.jpg)
Exercise #4: Revenue Model
• Create a price point and process for generating revenue by evaluating and discussing 2-3 revenue models.
![Page 14: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/14.jpg)
Scalability
• Look into how you will deliver your product/service for the first 10, 100, and 1,000 customers in order to understand whether the concept is scalable
• Research automation, outsourcing, and alternative manufacturing/development sources
![Page 15: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/15.jpg)
Cash and Financing
• Use your assumptions on cost and pricing to build a basic one year cash flow projection to understand hard costs associated with launching
• Evaluate feasibility of net cash need versus potential upside of idea to consider whether you can fund this or if investors would fund this
![Page 16: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/16.jpg)
Exercise #5: Financing
• Use initial costs/revenue assumptions to ascertain development costs, go to market and product launch costs, and implement these into a high level 12 month cash flow statement. Project early sales units based on conservative assumptions.
![Page 17: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/17.jpg)
Team and Capabilities
• Evaluate and recognize your capabilities and strengths to determine whether you possess the necessary skills to execute
• Determine whether, based your evaluation, you can attract talent to supplement your own skills
![Page 18: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/18.jpg)
Exercise #6: Team
• Split into teams and discuss experience, training, and skills to determine what role you would each take and what skills you would need to acquire. Develop a plan and timeline on how you would acquire skills (not everyone has to be full time)
![Page 19: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/19.jpg)
Do It
• Understand that entrepreneurs are problem solvers and that risk is about calculation
• Jump in, with the knowledge that execution drives success, not the quality of the idea
![Page 20: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/20.jpg)
The Pitch
•Leverage what you’ve learned to craft your 30-second elevator pitch
•Starting a pitch deck will help you continue to hone all items we’ve talked about
![Page 21: The DEC Education: Will it Work?](https://reader036.fdocuments.net/reader036/viewer/2022070312/553b5a084a7959473a8b4656/html5/thumbnails/21.jpg)
Q&A