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DIGITAL ENTREPRENEURSHIP #1 (What should a Business Plan Draft include?…
DIGITAL ENTREPRENEURSHIP #1
What is Entrepreneurship?
Entrepreneurship has been classified into 3 different streams in literature:
“The
pursuit of an opportunity
without concern for current resources or capabilities” [Stevenson, Roberts + Grousebeck 1985]
“The
creation of organisations
, new organisations come into existence” [Gartner 1990]
“The
processes
whereby an individual, or a group of individuals, in association w/ an existing organisation, create a new organisation or strategic renewal or innovation within that organisation” [Sharma + Christman 1999]
All these perspectives are included when people start to create a new business: idea generation, sense + identify opportunity, products or services + targeted market
Entrepreneurship need to be continued to keep market share: e.g BlackBerry had 20.7% of worldwide market share in 2009, but 0% in 2016
Idea Generation
"Big things have small beginnings"
Good business ideas are generally:
Creative: new, not easily replicated + have first-mover advantage
Feasible: not difficult to implement, consistent w current technological landscape
Impactful: have potential to change the existing market
What determines a good business idea?
Commercial viability:
idea must work within the constraints of a start-up business. Inventions may require such large amounts of start-up capital that they're untenable, or may not be able to be commercialised if they're unable to be made + sold profitably/linearly
Serves a purpose:
must solve a problem or there's unlikely to be any demand. Value must be clear and customers must recognise it
Potential for further growth:
could manifest as an expanded product range or activity in new markets. Operating in an expanding sector is preferable. Must also be able to leverage to the Internet to increase sales + expand customer base
Able to generate a profit:
must be commercially viable. Investors won't back you without research that factors in how much it will cost to make the product + how much it will sell for
Opportunity + Ideas
What can an opportunity be?
An unsolved problem/gap in the market
Demand-based from customers
Knowledge-based w new tech or innovations
An interest or hobby that can be monetised
How is opportunity discovered?
Prior experience
Information asymmetry: one party has better/more information that the other when making decisions + transactions
What must an opportunity be?
It must have timing
It must be attractive
It must be durable
What should a Business Plan Draft include?
Ideas: what they are
Scope: the boundary, + how big it is
Related Trends: social, economic or political trends
Key Stakeholders: potential clients and partners
Barriers: technical, cultural, regulatory
Positioning: in what context + market
Competition: potential competitors
Funding: investors, funding bodies
Timing: when to enter the market
Products or Services
Services/Products should be developed in regards to:
Specific solutions in reality
Their level [individual, firm or hybrid]
Response from customers + market
Variety [a wide range to suit different targets]
New developments of services/products
Need to consider target segments: the context, which particular segments + how to deliver to them