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Venture Evaluation Matrix A8417355-9131-43A1-A8B1-84A4EB108EA6 - Coggle…

- - - - Prevent the risk of “forcing” a solution to an alleged need before verifying the real need in the first place.
  - - - B2C (individuals): consumer psychology matters.
        
        Ex: Medical or agricultural innovations appeal to our physiological needs, whereas social media respond to a human need for belonging and esteem.
      - B2B (organizations): they have different considerations
        
        Corporations seek profits and efficiency, so the entrepreneur needs to generate a return on investment for the corporation or satisfies other corporate goals
      - Individuals or organization both have a hierarchy of needs
    - - Individuals may lack self-awareness, and organizations often
        display resistance to new product adoption
      - Learning from early adopters, iterative exploration
- - - - Standing out requires that the innovation is clearly better than its alternatives in some important dimension, and it shouldn’t be clearly inferior in other dimensions
    - - Intellectual property (IP) rights: such as patents, trademarks, copyrights, or industrial designs
      - Strategic barriers to imitation, such as lead time or trade secrets.
      - Depends on how strong the IP is, and on the nature of the technological advance and on the way the IP is defined
    - - Technological entrepreneurs often get carried away with the challenge of the innovation but fail to ask hard questions
        about how useful it actually is to users.
- - - - (+) good leadership and is willing to listen
      - (-) too control-oriented, unwilling to share decision making with others
    - - (+)
        
        having diversity in term of skills, bot hard and soft
        
        share a common vision and a common passion for the venture
      - (-) conflicts
      - an early-stage venture may require more creative types
      - a later-stage venture may require more execution-oriented managers
- - - - Size of the target market
        
        indicating the portion of the overall market
        the company actually targets
        
        distinguish different sets of customers. This analysis forces them to be specific about the relevant subset of customers
      - Size of the overall market
        
        indicate the economic importance of the industry
    - - Entrepreneurs often
        focus on changing markets where there is innovation and growth
      - Timing the market is a key challenge for entrepreneurs. If they enter too late, others will already have seized the opportunity, but if they enter too early, they will fail to get traction
    - - the entrepreneur searches
        for potential customers that are particularly eager
      - In addition to having a clear need,
        those early adopters have a willingness to take a risk on an unproven solution
      - distinguishing customers by their behavioral characteristic
- - - - The degree of competition depends on many factors, including
        barriers to entry, the extent of differentiation, or the scrutiny of regulators
      - In the earlier stages of an industry, nonprice competition often focuses on technology, customer segmentation, setting a dominant design, and product differentiation
    - - In the beginning, start-ups often differentiate themselves through continuous experimentation and learning, rapid adoption of new ideas, and faster execution.
      - Over time, the company finds a stronger
        identity in terms of its products and market niches
    - - other start-ups
      - established corporations
        
        they also tend to be inert, focused on selling their current product,
        and preoccupied with servicing their existing customers
        
        wait for entrepreneurs to prove the viability of new ideas. Either they enter the market and build up their own presence, or they acquire one
        of the start-ups already in the market
- - - - Third parties
        
        Relying on third parties leverages the resources and reputation of established players
        
        higher variable costs due to commissions.
        
        involve cooperation with established firms in the industry
      - selling directly
        
        selling direct allows the company to better control the customer experience and to learn fromdirect customer contact
        
        often requires higher initial fixed costs
- - - - what is missing in the current founder team
        
        This means looking at the future strategic needs and at where
        the holes are in the current team
      - how to make the best use of
        the talent within the current team
  - - - As the company grows, there also has to be a balance between external hires and internal promotions