11. Fall in love with a PROBLEM.
Don’t get infatuated with a solution.
[Allows you to try new solutions if one does not work]
12. To have one great idea, have
many of them.
Thomas Edison
13. An idea means nothing.
Implementation is everything.
14. Plans are useless.
Planning is priceless.
Plans change. Planning allows you to adjust your
plans in implementing your idea.
Your idea or venture should not fail because your plan
failed. Rework your plan. Adjust your solution.
15. Exercise 1
Identify the problem or need that
you want to own
Present it as:
1. The situation/environment [e.g. accommodation choices in
Gurgaon are either too expensive or too basic & dirty]
2. The problem you want to address [e.g. “We want to
address the problem of finding smart, cheerful accommodation
at reasonable prices]
16. Exercise 2
State the ideas that address the
problem that you chose
Present all the ideas you considered and explain why
you discarded some.
17. Evaluating
the business
potential of
an idea
1) Concept
2) What will it take to deliver?
3) Team required for this
4) What is the size of the
opportunity
5) Defensible competitive
advantage?
6) Business model / financial
model
7) Competitive landscape
8) Risk factors
9) Funds required and use of
funds
18. Concept
• No more than one short, unambiguous
paragraph
– Reader should not need to read it again
to understand
– Capture the essence in a one crisp line
– Use simple language
– Sell the potential
19. What does it take to deliver?
Brand
Strategy
Value proposition &
positioning
Target Audience
Pricing
Brand Personality
Product
Procurement
Production
Supply chain
Vendor management
Capacity utilization
Portal
Technology Platform
Look & Feel – user experience
Ordering mechanisms – including
‘order on phone’
Payment gateways & methods
Logistics
Delivery & fulfillment
mechanisms
Warehousing
Logistics partners
Order Management
Marketing
Marketing strategy as well as tactical
ideas
Media Plan & Budgets
CRM Strategies & Ideas including
loyalty programs, referrals, etc.
Team
Roles & Responsibilities identification
HR policies
Team hiring & retention plan
E-commerce
20. How many vendors are involved?
19 Partners / Vendors involved in the implementation process
Technology & portal
development partners
1. E-commerce capable
Technology partners
2. Hosting partner
3. User Interface partner
4. Payment Gateway
5. Testing & bug fixing
experts
Operations partners
1. Packaging & printing partners
2. Logistics partners
3. Recruitment consultants
4. CRM partners/CRM platform
vendors
5. Database vendors
6. Process Training Consultants
7. Soft Skill Training Consultants
8. Outsourced Call Centre
Marketing & Brand
Communication partners
1. Brand identity specialists
2. Photographer
3. Direct Marketing agency
4. Social Media Agency
5. Advertising Agency
6. Media Buying agency
21. Team required to deliver
• “VCs prefer A-Class teams with mediocre
business plans over B-Class teams with
great business plans”
• Diversity of skills, domain expertise
critical but with similarity of passion
• Ideally, find partners with similar
aspirations, motivations and financial
situations
22. Size of the opportunity
• Break it down to last detail
– Total market size
– Addressable market size
• What price point and how does that
translate into revenue
• Test the assumptions
24. Business model / financial
model
• Three key questions
– How much will you sell at
– How many will you sell
– Where will you sell… and how
• Who will pay for it – [user and buyer
could be different]
• Translate the above questions into a
financial model
25. Competition
• Who will you compete with?
• Why would someone choose you over
them?
• Why do you have a chance to be a
dominant player?
In many cases, status quo [i.e. doing
nothing] is the biggest competition
26. Risk factors
• Market risks?
• Financial risks?
• Competitive risks?
• Business model risks?
• Execution risks?
27. Funding needs
• What do you need the money for? – Be
specific
• How much do you need? – Be
definitive
28. Exit potential
• How is the investor going to earn a good
return?
Sale to a strategic investor
Exit by selling stake to a growth stage investor
IPO?
[Note: Exit does not mean that the
entrepreneurs has toExit]
30. Evaluating
the business
potential of
an idea
1) Concept
2) What will it take to deliver?
3) Team required for this
4) What is the size of the
opportunity
5) Defensible competitive
advantage?
6) Business model / financial
model
7) Competitive landscape
8) Risk factors
9) Funds required and use of
funds
31. Sleep over your ideas.
More often than not you will
get over them.
Dream big. Dream often.