Glossary

• A

• A/B Testing
• See: Split Testing
• Accounting
• Accounting: the action or process of keeping financial accounts
• Additional Value
• See: Alternative Value
• Addressable Market
• Addressable Market: the total potential market for a product or service, measured in dollars of revenue per year
• Adventure
• Adventure: daring and exciting activity calling for enterprise and enthusiasm

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

Technology Readiness Levels (TRL)

Most every new innovative idea has a fuzzy front-end. The idea may have potential, at least in someone's mind, but it also likely has "holes" in it.  Will it really work? What about this, what about that?
If we were to score this new idea, from 0 to 9, where would it be? Turns out, NASA and the European Commission created a well-vetted method for scoring new ideas based on the stage of technological progress ... 0 being conceptual, 9 meaning the idea is out there and doing well in the world.

Rules of Some for Innovators and Entrepreneurs

Here's a collection of more tips, tools, and rules of some for innovators and entrepreneurs: RulesOfSome.com

Innovators and Entrepreneurs ...

 

Live and learn (hopefully!) ...

Lute Olson was a very popular basketball coach at the University of Arizona.  He had many of his players move on to great careers in the NBA and other professional basketball leagues.  This quote is a good summary of his philosophy for sharing and teaching how to be a better player.  It works well for innovators and entrepreneurs, too ... let's do what we can as best as we can and learn and iterate and pivot as we go.  But, let's try hard to learn from what didn't go well, and not do the same thing again the next time around.

News Release Implementation Plan

Phase 1

1. Outline base story
2. Identify key individuals in the story
3. Establish time frame for activities
4. Identify target media

Phase 2

1. Interview story makers
2. Write a short story (3 pages) as a follow-up to requests for more information from the media or readers/viewers
3. Write a focused news release(s)
4. Send news release(s) to media

Phase 3

1. Field inquiries from media regarding the release
2. Track response to release
3. Follow-up as needed

Phase 4

1. Summarize activities ... package the story, news release(s), tracking info, results, suggestions for follow-up

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

Red Flags ...

I have worked (in varying degrees, from light to heavy) with literally hundreds of new venture planning and startup teams, through my 20+ years at the University of Arizona, as a private consultant, and as a startup team member. 

I have a personal mental checklist that I use to evaluate the success probability of a new venture: can it move from the planning stage to a financially stable self-supporting business.  Some science here, some "gut feel", some "told you so" experience coming through ... but here are some of my "red flags": things startup team members say and what I really "hear".

They say: "We don't have any competition!"  ... I hear: "We haven't done our homework to see what else is really out there."

They say: "We the first to ever do this!" ... I hear: "So who cares?  If it's never been done before, maybe that's because there's really no need to do it."

They say: "Everyone is going to want one of our new gizmogadgets!" ... I hear: "Our family and close friends think our gizmogadget is really neat!"

They say: "We're going to build a much, much better gizmogadget and sell it for half as much as the competition!" ... I hear: "We have no idea how much it will really cost to make our gizmogadget or how much it will really cost to market it."

... and there are more!  Check back every now and then, and I'll update this post.

Financial Objectives

Here's a photo of a whiteboard from my old office at the University of Arizona that shows a representative example of setting some "financial objectives" for a business venture ...