Never Let Go An Opportunity

To Be Fabulous
It May be Today

Entrepreneurial Process
MGT 631 Fall 2016
MBA 2K15
Dr. Sarah Khan
Week 2

This Week

IMVU
Starting a Business
Entrepreneurship perspectives
The Lean Start up
To Start a company...Vision

Exercise

Why these topics are important for you?

Knowing a concept gives perspective
Knowing a process gives structure
Learn from others experiences

The IMVU
Some Facts!

Fail Early Fail Fast

To Start a Company
Solution looking for a problem (Tech)
Problem looking for a solution (Idea)
I want to be the master of my own destiny
(Passion)

What Actually Happens

10

From Passion to Idea

-Knowledge
-Past Work Experience
-Capability
-Connections
-Financial Assets
-Name Recognition
-Passion
-Commitment

IDEA!

Idea
Idea: The recognition that something has
commercial value (its not a product yet)
An idea may come:
Through insights about customers
Through new or existing capability (have or obtain)

Challenge: How to state need as an ability or an

ability as a need?
Need: An unmet desire on the part of a customer
Ability: Your ability to meet the customer need.

Opportunity Development
(Mugge and Markhum, 2015)
Ability
1. Idea + Ability = A product no one wants
2. Idea + Needs = A product you cant deliver
3. Needs + Ability = An unfocused product
4. Idea + Needs + Ability = Opportunity

Opportunity: An idea embedded in customer needs and your

ability to deliver on the need.

IMVUs Fabulous Opportunity?

Opportunities are never fabulous, they are made
fabulous!

The Question
How to Manage this journey from idea to
business opportunity and beyond?

16

The Entrepreneurial Perspectives

The Traditional way
Some examples?

The Lean start up way

Build-Measure-Learn

Traditional Start up Process

Idea
Business Opportunity

Macro Environment Analysis

Industry Analysis
Customer Need Analysis
Resource Analysis

Testing
Business Plan/ Pitch
Start a business

The Lean Start up

Why Start ups/ business projects fail?

Allure of a solid plan!
Just do it!
Bill Gross (7 mins)

Vision
Goal:

Vision
Strategy
Product
Optimize

Figure out the right thing to

build.and do it!

Vision:
Creating a thriving and
world-changing business

Important:
Mindset
Motivation
Behavior

Pivot

Define
Start up:
Human Institution designed to create a new
product or service under conditions of extreme
uncertainty.

Product Innovation Extreme Uncertainty

Learn
We must learn the truth!
Validated learning (IMVU)
Experiment (Next Slide)

The Dilemma:
Value vs. Waste
Movie: Joy

Experiment
Your First Product!
Clear hypothesis:
Which customer opinions matter?
Guided by start up vision

Zappos
Think big, start small

Breaking Down Hypothesis

Value Hypothesis
Does the product deliver value?

Growth Hypothesis
How new customers will discover the new
product?
Early adopters to masses

Movie: Joy
Find assumptions in your plan and find ways to
test them!

Conclude
Starting a Business - Prerequisites
Entrepreneurship process perspectives
The Lean Start up
To Start a company...Basics (ER Chapters 1-4)

For Next and Following Week

Design Thinking Week 3
The Course Project Opens Today (LMS)
Assignment 1 open today (LMS)
IMVU CASE Week 4

Assignment 1
Creativity Challenge
Making money is not the objective!