Are We Shooting Down Good Ideas?

1. You know whether or not an idea is good based who proposed it.
2. You observe from a distance rather than being lead down a path to the idea. (a.k.a. The Sniper)
3. You believe every idea is improved with your input.
4. Listing the top 10 ideas from your organization this year, half or more are your own.
5. Brainstorming means narrowing down to the best idea, instead of hearing all of them.
6. All ideas must be proven.
7. You only want BIG ideas.
8. You have no effective mechanisms to foster, collect, review, and implement ideas.
9. Your competition is your main source of ideas.
10. No matter how much you've talked about ideas, collected them, praised them, in the end you don't use them. (Like a maimed duck, you let them wander off and die.)

[Thank you, Dustin Staiger]

Perspectives on the Nature of Entrepreneurship

1. Creation of Wealth ... assume risks in exchange for profit
2. Creation of Enterprise ... founding a new business where none existed before
3. Creation of Innovation ... making existing products or methods obsolete
4. Creation of Change ... adjusting, adapting, modifying to meet new opportunities
5. Creation of Employment ... employing, managing, developing the factors of production
6. Creation of Value ... creating value for customers by exploiting untapped opportunities
7. Creation of Growth ... sales, income, assets, and employment

[Thank you, Michael H. Morris]

Highlights of an Effective Venture Plan

1. Start with a clear, concise executive summary of your venture. Think of it like an elevator pitch. In no more than two pages, billboard all the important stuff. At the top, communicate your value proposition: what your venture does, how it will make money, and why customers will want to pay for your product or service. If you are sending your plan to investors, include the amount of money you need and how you plan to use it. You have to know the whole picture before you can boil things down, so tackle the summary after finishing the rest of your plan.
2. Next, establish the market opportunity. Answer questions like: How large is your target market? How fast is it growing? Where are the opportunities and threats, and how will you deal with them? Again, highlight your value proposition. Most of this market information can be found through industry associations, chambers of commerce, census data or even from other business owners. (Be sure to source all of your information in case you are asked to back up your claims or need to update your business plan.)
3. While you may have convinced yourself that your product or service is unique, don't fall into that trap. Instead, get real and size up the competition: Who are they? What do they sell? How much market share do they have? Why will customers choose your product or service instead of theirs? What are the barriers to entry? Remember to include indirect competitors--those with similar capabilities that currently cater to a different market but could choose to challenge you down the road.
4. Now that you've established your idea, start addressing the execution ... specifically, your team. Include profiles of each of your business's founders, partners or officers and what kinds of skills, qualifications and accomplishments they bring to the table. (Include resumes in an appendix.)
5. If potential investors have read this far, it's time to give them the nuts and bolts of your business model. This includes a detailed description of all revenue streams (product sales, advertising, services, licensing) and the company's cost structure (salaries, rent, inventory, maintenance). Be sure to list all assumptions and provide a justification for them. Also, include names of key suppliers or distribution partners.
6. After all of that, one big question still remains: Exactly how much money will your venture earn? More important, when will the cash come in the door? That's why you need a section containing past financial performance (if your company is a going concern) and financial projections.
7. Three-year forward-looking profit-and-loss, balance sheet and cash-flow statements are a must ... as is a break-even analysis that shows how much revenue you need to cover your initial investment.
8. For early stage companies with only so much in the bank, the cash-flow statement comparing quarterly receivables to payables is most critical. "Everyone misunderstands cash flow," says Tim Berry, president of business-plan software company Palo Alto Software. "People think that if they plan for [accounting] profits, they'll have cash flow. But many companies that go under are profitable when they die, because profits aren't cash."
9. After you've buffed your plan to a shine, don't file it away to gather dust. "A business plan is the beginning of a process," says Berry. "Planning is like steering, and steering means constantly correcting errors. The plan itself holds just a piece of the value; it's the going back and seeing where you were wrong and why that matters."

[Thank you, Mary Crane]

[2.17]

Potential Sources of Venture Funding

1. The "Fs" ... founders, family, friends, fanatics, fools ... the starting point for most independent ventures ... generally low to moderate sophistication, low to moderate investment ...
2. Bootstrapping ...
3. Customers ...
4. Suppliers ...
5. The "Strangers with Candy" ... angels, investment clubs ... wide range of investment interest and sophistication, generally low to moderate investment ...
6. The "Vulture Capitalists" (VCs) ... venture capital firms ... usually focused on a specific industry ... moderate to high sophistication ... a mistaken target for many new ventures, very few new ventures are funded directly by VCs ...
7. The "Big Ugly Monsters" (BUMs) ... corporate venture capital ... usually focused on specific industries and proven ventures ... may fund internally-developed ventures ... often part of a angel/VC network of investors ...
8. Corporations ...
9. Bank loans ...

[4.16]

Google Design Principles

1. Focus on people - their lives, their work, their dreams.
2. Every millisecond counts.
3. Simplicity is powerful.
4. Engage beginners and attract experts.
5. Dare to innovate.
6. Design for the world.
7. Plan for today's and tomorrow's business.
8. Delight the eye without distracting the mind.
9. Be worthy of people's trust.
10. Add a human touch.

[Attribution: Sue Factor, User Experience Group, Google]