Tips for Developing a Venture Strategy

1. Develop the vision statement, the mission statement, and the business model
2. Describe the industry and context for the firm and its competitors
3. Determine the firm’s strengths and weaknesses in the context of the industry and environment
4. Describe the firm’s core competencies, its customers, and its competitive advantage
5. Describe the opportunities and threats for the venture
6. Identify the critical success factors
7. Formulate strategic options and select the appropriate strategy
8. Translate the strategy into action plans with suitable measures and controls

[Thank you, Tom Beyers]

Stages of Venture Evolution

Successful business ventures typically move from a] problem/solution ideation to b] planning to c] startup to d] stable to e] sustainable to f] scalable.

Another perspective ...

1. Opportunity ... gap in market, new technology ... maybe, just maybe, we can do something here
2. Idea ... clear problems, viable solutions ... hmmm, looks like there is something here
3. Concept ... viable strategies for earning a profit solving customer problems better than the competition
4. Venture ... viable innovation concept (product, service, process, position, method); viable team (innovator, entrepreneur, money manager); viable resources (people, places, things, time, money)
5. Organization ... team, roles, clear strategies,
6. Company ... legal entity (corporation, LLC, et alia), pre-sales, unstable financials (raising funds)
7. Business ... low-hanging fruit, sales, customers, stable, positive EBITDA, viable business model
8. Enterprise ... scale, scope, markets, growth, significant EBITDA, defined task and assignments, employees
9. Institution ... significant market share, significant industry position, re-invention, continual innovation
10. Tombstone ... the cows have run out of milk

Venture Hypothesis Outline

1. Title slide or page ... venture concept name, team members, 3-word concept summary
2. Opportunity ... the problem, market research and analysis, first customer(s) beachhead
3. Solution and venture concept ... products and services, competitive advantage
4. Business model ... how the venture will earn money (or self-sustain)
5. Marketing and sales strategies ... how the venture will attract and retain customers, tactical marketing
6. Product development and operations strategies ... how the venture will develop and deliver solutions to customers
7. Team and organization ... the current team and what do they do, advisors, team members to be added
8. Risks and variations ... downside and upside risks, timeline, and tolerances
9. Financial model ... estimate of units sold, average selling price, revenue, expenses, and EBITDA for first 5 years; key assumptions; significant startup expenses
10. Validation plan ... how the hypothesis will be validated

2.03

How to Start a New Venture

Go on a DXpedition ...

The Desire Phase ...
Determine why you (and your teammates) want to start a new venture

The Discover Phase ...

Form initial core entrepreneurial team
Identify problems or opportunities

The Define Phase ...
Screen problems or opportunities

Define the value proposition

The Design Phase ...
Generate potential solutions
Create a business venture hypothesis
Design a business venture plan

The Deploy Phase ...
Acquire needed resources
Launch the venture

The Develop Phase ...
Test, validate, and refine the venture hypothesis
Develop and iterate the venture based on real customer experiences

Traits of a Good Target Market

A business cannot efficiently and effectively solve every prospective customer problem. Rather, successful business ventures begin by serving a particular niche market segment really well, better than the competition.

10 Tips for Launching a New Venture

1. Don't wait for a revolutionary idea ... it will never happen ... just focus on a simple, exciting, empty space and execute as fast as possible.
2. Share your idea ... the more you share, the more you get advice and the more you learn ... meet and talk to your competitors.
3. Build a community ... use blogging and social software to make sure people hear about you.
4. Listen to your community ... answer questions and build your product with their feedback.
5. Gather a great team ... select those with very different skills from you ... look for people who are better than you.
6. Be the first to recognize a problem ... everyone makes mistakes ... address the issue in public, learn about and correct it.
7. Don't spend time on market research ... rather, launch test versions as early as possible ... keep improving the product in the open.
8. Don't obsess over spreadsheet business plans ... they are not going to turn out as you predict, in any case.
9. Don't plan a big marketing effort ... it's much more important and powerful that your community loves the product.
10. Don't focus on getting rich ... focus on your users ... money is a consequence of success, not a goal.

[Thank you, Loic Le Meur]