New 1 business idea vs concept

1. On a Business Idea vs. Concept
Ziya G. Boyacigiller
This presentation was created and given by Ziya
Boyacigiller who was leading Angel Investor and a loved
mentor to many young entrepreneurs in Turkey. We have
shared it on the web for everyone’s benefit. It is free to
use but please cite Ziya Boyacigiller as the source when
you use any part of this presentation. For more about
Ziya Boyacigiller’s contributions to the start-up Ecosystem
of Turkey, please go to www.ziyaboyacigiller.com

2. Business Idea
vs
Business Concept

3. Learning Objective:
We will learn how to
present our business
idea clearly.
We will learn how to tell a
story that will describe
our business concept.

4. Side Bar:
Strategic Stories:
How 3M is Rewriting Business Planning*
Example:
We will:
 Increase market share (SOM) by 25%
 Increase profits by 30%
 Increase product intros to 10 a year.
Q: What is causing what here?
Ziya G. Boyacigiller (c) 2005 EMBA
4
•HBR, May-June 1998

5. Example:
What is implied by the bullets, in the
previous slide?
Is the cause-and-effect chain:
A.
SOM  Profits  Product Development
or,
B.
Product Development  SOM Profits
Ziya G. Boyacigiller (c) 2005 EMBA
5

6. Side Bar:
Bullets don’t work well…
 Bullet lists are too generic
 Bullets leave critical relationships
unspecified
 Bullets leave critical assumptions
about how the business works
unspecified
Ziya G. Boyacigiller (c) 2005 EMBA
6

7. Tell a Story…
Narrative stories overcome
these issues:
1. Set the stage
(who are the actors / situation)
2. Define dramatic conflict
(difficulties / “pain”)
3. Resolution
(how you win / eliminate pain)
Ziya G. Boyacigiller (c) 2005 EMBA
7

8. Benefits of Story Telling:
 People remember stories much better,
 People will understand the situation,
problem, and your proposed solution clearly,
 Cause-and-Effect relationships are clear in a
story.
 Business Plans should be communicated
just like a story, so they are clearly received
by the listeners.
Ziya G. Boyacigiller (c) 2005 EMBA
8

9. Business Idea vs.
Business Concept
Business Idea:
“I want to get into Internet
security…”
Q: Is this a good business?
Ziya G. Boyacigiller (c) 2005 EMBA
9

10. Business Idea vs.
Business Concept
Business Idea:
“Get into Internet security…”
Business Concept:
1. Who is your customer?
2. What value will you offer them?
3. How will you deliver the value to
them?
4. How will you reach these customers?
Ziya G. Boyacigiller (c) 2005 EMBA
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11. Business Concept Statement
1. Customer:
SMBs (KOBI) that make use of
Internet to run their businesses,
which are currently being ignored
by the larger IT companies.
Ziya G. Boyacigiller (c) 2005 EMBA
11

12. Business Concept Statement
2. Value Proposal:
Security system that is
updated and maintained
over the Internet, so
SMBs would not need to
spend time and money to
do this themselves or by
using outside contract
labor.
Ziya G. Boyacigiller (c) 2005 EMBA
12

13. Business Concept Statement
3. Delivering Value:
All services would be
installed via a “hardware
box” that connects in
between the Internet
connection and the
intercompany network.
Ziya G. Boyacigiller (c) 2005 EMBA
13

14. Business Concept Statement
4. Reaching Customers:
Get contact information
from the Chamber of
Commerce, and use
direct sales personnel.
Ziya G. Boyacigiller (c) 2005 EMBA
14

15. Tell the Story Now…