CITE - Jackson Walker Semi Annual Technology Entrepreneurship Boot Camp

Transcription

1 CITE - Jackson Walker Semi Annual Technology Boot Camp Dr. Cory R. A. Hallam Director UTSA and Technology 1

2 Technology Technology is a major driver of our economy and is growing in San Antonio U.S. Job Creation by Firm Size <

3 So Let s Play Spot the Entrepreneur Slide 3

4 OK, That was easy let s make it a little harder 4

5 A) Oprah B) Richard C) Bill D) Crazy Scientist 5

6 Don t get confused Between inventors and entrepreneurs The former often create new technologies (ideas) The latter create new business (money) Which one has the better ROI? 6

7 The former have these 7

8 The latter have these 8

9 Do You Have The Courage? Slide 9

10 Agenda 8:30-9:00 a.m. Registration and Continental Breakfast 9:00-9:15 a.m. Welcome and Boot Camp Overview 9:15-10:15 a.m. Keynote Address: Larry Miller, Vidacare CMO and Founder 10:15-10:30 a.m. Break 10:30-11:30 a.m. Branding and Marketing You and Your Technology 11:30 a.m.-12:15 p.m. Creating Your Business Plan, Slide Deck, Elevator Pitch 12:15-12:45 p.m. Lunch 12:45-1:30 p.m. Successfully Managing Your Intellectual Property 1:30-2:15 p.m. How to Legally Structure and Create your Company 2:15-2:30 p.m. Break 2:30-3:15 p.m. So You Need Cash? Funding Your Start-up in San Antonio 3:15-3:30 p.m. Are You Ready To Go? The Main Questions to Answer 3:30-4:30 p.m. Wrap-up and Networking Reception Slide 10

11 A Checklist for Opportunity Evaluation (J. Picken UTD) You must begin by understanding the basic transaction: Why is someone (your customer) going to pay you (substantially) more for the good or service you are providing than it will cost you to produce? Opportunities can be evaluated one step at a time following a Checklist for Opportunity Evaluation 11

12 CUSTOMER NEEDS 1. Who is the customers? What are their needs? What are their alternatives? Who is the target customer? Can we identify a set of customers by name? What customer need would be satisfied by our offering (do they realize they have a need)? How important is meeting that need to the customer (a nice to have or essential )? What are the customer s alternatives (competition, not spending!)? 12

13 COMPETITIVE ADVANTAGE STOP 2. Competitive advantage: Why will customers buy this product/service from us rather than from one of our competitors? Better product at the same price? Same product at a lower price? Meets the needs of a particular group of customers better than any other offering? Unique technology protected by patents? Is the competitive advantage sustainable? How? 13

14 A customer takes on a huge risk in displacing a known solution with a new and unproven product/technology from a not very well established company The 9X Effect Every entrepreneur s baby is beautiful in his eyes often blinding him to the possibility of alternate solutions Consumers are usually: Entrepreneurs are often: Skeptical about a new product s performance Unable to see the need for it Satisfied with the existing product Quick to see what they already own as the status quo Consumers overweight the incumbent product s benefits by a factor of three 3 X 3 9X Entrepreneurs overweight the new product s benefits by a factor of three Convinced the innovation works Likely to see the need for the product Dissatisfied with the existing substitute Set on viewing the innovation as the benchmark From: Gourville, J.T. Eager Sellers, Stony Buyers: Understanding the Psychology of New Product Adoption. (HBR June 2006) 14

15 VIABILITY 3. Assessing Viability: Is there a business (market) opportunity? Scope of target market (geographic/demographic) Potential (how many customers in target market?) Market penetration (how many potential customers will buy?) Share of market (realized vs. potential) Competitors (how is the need currently being met?; is our offering demonstrably better?) 15

16 SUCCESS FACTORS AND TIMING 4. Critical success factors What three or four things must go right in order to succeed? Is our management team capable of making it happen? 5. Timing considerations Is the window of opportunity broad or narrow? Is timing critical to capturing market share? Who else is trying to get there first? 16

17 BUSINESS MODEL AND PROFIT 5. Do we have a viable Business Model? How will we reach our customer (sales & distribution)? How will we produce the product? How will we price the product? How will we support the product after the sale? 6. Can the business be profitable? Selling price (to achieve target volume goals) Cost to manufacture (function of volume)? Cost to distribute, sell, service, support? Other costs? Cost/volume relationships? Breakeven point? 17

18 Managing Risks Technical risk will it work? Market risk will they buy? Competitive risk can we sustain a competitive advantage? Implementation risk Leadership Resources A viable business plan? What could go wrong? (remember Murphy s Law) 18

19 What Kinds of Opportunities to Pursue? Prospective entrepreneurs should look for: Markets in flux rather than stable or mature markets Industries with low capital requirements and flat or declining returns to scale (few large competitors) Markets where customers will pay a significant premium for customization and personal service Products or services where the unit sale is large enough to support a direct sales effort The entrepreneur has to judge which issues need careful analysis and which should be taken for granted 19

20 Summary Entrepreneurial success takes more than a bright idea, luck and hard work. You must also have: A real customer need (recognized by the customer) The best solution to meet the need (or close to it) A viable business model Timing, resources, management talent, partners and allies Too many would-be entrepreneurs start with a clever technology or a bright idea and assume that the world will beat a path to their doorstep Unfortunately, it rarely works that way Opportunities must be evaluated quickly, but carefully and deliberately to avoid making the most common errors 20

21 The Growth Rule of Ten Who are my next customers Who are my next customers Who are my next 100 customers Who are my next 10 customers Who is my first customer Why will they pay me for my product/service? How will I secure the deal? What resources do I need to complete the transaction? Each growth by a factor of ten requires the entrepreneur to evaluate how they will do business Without this vision forget going into business 21

22 TIME TO GET STARTED Slide 22