SIFE Lakehead 2009

 Characteristics of successful entrepreneurs

 Ethics and entrepreneurship
 Purposeful innovation
 Road map from idea to commercialization
 Ideas vs. Opportunities
 Generating Ideas
 What to Do when momentum is lost
 Idea Generating Activity
 Screening Ideas for opportunities
Passion for the Product/customer
Business focus

The Successful
Entrepreneur

Tenacity Despite Execution

Failure Intelligence
Bill Gates, Melinda Gates, and Warren Buffet at a press conference on Monday in New York.
Buffet recently announced his intention to give roughly $31 billion to the Gates Foundation.
(AP Photo)

Measures of success

Bill Gates and Warren Buffett want their charitable billions to be spent wisely. So how is the
effectiveness of philanthropic aid actually measured?

By Drake Bennett | July 2, 2006

When it was announced that Warren Buffett had pledged roughly $31 billion-the majority of
his fortune-to the Bill & Melinda Gates Foundation, the fact that the world's second-richest
man had entrusted his philanthropic legacy to an existing foundation instead of starting one
under his own name only added to the public acclaim. But Buffett said he was simply
following what has always been one of his tenets: investing in companies whose managers
he trusted, and letting them run the business. ``I've got some people who I say can give it
away better than I can," he said of the Gateses on Monday.

Corporate Philanthropy
 IDEO
 3M
 Ideas – opportunities – feasibility – business
plan – implementation – evaluation –
modification - management

Ideas Opportunities
Feasibility Screening
(Proof of concept followed by Business Plan Implementation
Financial viability screening) (financing, resourcing)

Evaluation
 Brainstorming New
Product Innovations

 Screening Those Ideas

 Business Plan

 Implementation
Creative / Soft-Thinking (Right
Brain)
- brainstorm new product innovations

Logical / Hard-Thinking (Left

Brain)
- formal business planning (opportunity
screening, market forecasts, financial
forecasts)
Identifying Viable Business Opportunities
 Are a ‘dime a dozen’
 Don’t fall in love with your own idea
 Don’t hide it under a tarp in the back yard
 Look before you leap (critically evaluate the potential
for the business before starting)
 You have to screen from 100 to 1,000 different ideas
before you find a true opportunity that fits you in this
place and at this time.
◦ Avoid the service industry in a declining economy
◦ Avoid the retail industry in a declining economy
◦ Seek value-added, export-oriented businesses selling
into growing markets
 Ideas are “a dime a dozen”

 Opportunities are business ideas that offer

the potential for a return on invested capital
that more than offsets the costs of that
capital on a risk-adjusted basis.
 Ideas Opportunities

 Harvest heavy metal  Sell pollution solution

contaminants out of technologies to
river bottoms using companies under
plants environmental cleanup
orders.
 A motivated and large market of customers prepared
to pay any price for the product or service you offer
 Repeated purchases are necessary for customers to
satisfy their demand
 Significant barriers of entry for any potential
competitors preserving your market dominance for a
long period of time
 Little or no capital investment required
 High profit margin (Selling price less cost to produce)
 Few employees and little demand on your time
 Few customers, no repeat purchases, sporadic and
unpredictable demand
 few barriers of entry for any potential competitors
making it easy for anyone to enter the market to
compete with you if you manage to develop the
market
 Large initial and on-going capital investment
required
 Low profit margin per unit (Selling price less cost to
produce)
HARD – Linear SOFT – often circular
critical - logical Non-judgmental - illogical
 Logic  Metaphor
 Reason  Dream
 Precision  Humour
 Consistency  Ambiguity
 Work  Play
 Exact  Approximate
 Reality  Fantasy
 Direct  Paradox
 Focused  Diffuse
 Analysis  Hunch
 Specifics  Generalization
 Adult  Child
Left-Mode Right-Mode
(Hard-thinking) (Soft-thinking)
 Verbal  Nonverbal
 Analytic  Synthetic
 Symbolic  Concrete
 Abstract  Analogic
 Temporal  Nontemporal
 Rational  Nonrational
 Digital  Spatial
 Logical  Intuitive
 Linear  Holistic

Source: Betty Edwards, “Drawing on the Right Side of the Brain”

1. Focus on the right answer
2. That’s not logical
3. Follow the rules
4. Be practical
5. Avoid ambiguity
6. To err is wrong
7. Play is frivolous
8. That’s not my area
9. Don’t be foolish
10. I’m not creative
 Techniques include:
 Group brainstorming/lateral thinking exercises
 Research – observation, enquiry, play, prototype,
experiment
 Focus groups
 Surveys
 Analysis of and reflection on trends:
 Economy
 Society – social trends
 Technology
 Science
 Political and regulatory changes

There is opportunity in change, chaos, complacency and even boredom.

 Opportunities are spawned in
◦ changing circumstances
◦ chaos
◦ confusion
◦ inconsistencies
◦ lags or leads
◦ knowledge and information gaps
◦ vacuums in industry or markets
Look for opportunities in the following:
 things that ‘bug’ you
 things that bother others or stop people from doing what
they want, when they want, and the price they want
 new advances in science and technology
 Solutions in one field being applied to another field
 look for problems that need to be solved
 changes in our world whether those changes be in:
 demography
 society
 technology
 science
 politics
 etc.
When brainstorming, start to combine ideas. Use
each as stepping stone to something else. Don’t be
afraid to experiment.

Example:
Two ideas: pealing paint and gun powder
----I hate scraping old paint off the exterior of my house…..I wish
sometimes that I could blast it off!!! (Of course, that would destroy the
house….but…)
- maybe there is an additive that could be put in the paint before it is
applied, that would allow us to trigger it’s easy removal.
Simile often give us ideas or insights that logical thinking cannot.

Fibre is like glue.

Different simile will give you a whole new perspective on what it is that you are
examining.

Fibre is like a sieve.

Fibre is like gossamer.

Use the insight provided by different simile to look for ideas!

Example: Dolby is like a sonic laundry. It washes out all the noise or dirt from the sound without hurting
the sound.
 Use “What if” Questions
 Play with the idea
 Challenge the rules associated with the problem
 Be a magician
 Be a child
 Be ambiguous…and look for the possibilities
(geeh…that pen is a pen, but it could be a pointer, a digging implement or
even a weapon or projectile)
 Go “hunting” for ideas from other fields…ideas that
could be creatively applied to your field of interest.
(Like Guttenberg who used the coin punch and wine press ideas to invent the
printing press.)
 At the edges of human experience: (at extremes)
◦ when you are tired
◦ when you are at rest
◦ when you are pressed by a deadline or are stressed
◦ when you are playing
◦ when you are on vacation
◦ when you are exercising
 Usually NOT when you are doing routine things!!!!
 Try doing something differently…live your day
backwards…break the routine!

Necessity is the Mother of Invention…but play must be the Father!

 Requires creative thinking (soft-thinking)
 Here are some suggestions to improve the
brainstorming process:
1. Choose a facilitator
2. Small groups work better than large.
3. Freewheeling is encouraged – the wilder the idea the better.
4. Brainstorm spontaneously, copiously
5. No criticism, no negatives
6. Quantity – the greater the number of ideas, the greater the
likelihood of finding useful ones.
7. Record ideas in full view
8. Invent to the “void”
9. Resist becoming committed to one idea
10. Combinations and improvements are encouraged – ideas of
others can be used to produce still other new ideas.
◦ Identify the most promising ideas
◦ Refine and prioritize
 Like brainstorming EXCEPT criticism is
allowed.
 Ask the question:

“In how many ways can this idea fail?”

◦ After you have identified everything wrong about an

idea, you discuss ways to overcome these
problems.
 Written form of brainstorming. (Bernd Rohrbach –
Method 635)

 Use 5 minute intervals.

 Works best with 6 member groups.
◦ Each group member writes three ideas on small
card in each 5 minute period.
◦ The card is passed to the next adjacent person –
who writes down three new ideas on the same card
– who passes it to the next person…until each form
has passed all participants.
 Produce a list of problems with natural fibre.
 Identify and discuss products in each category that have the
particular problem.
 Example using food:
◦ Psychological:
 Weight – fattening – empty calories
 Hunger – filling – still hungry after eating
 Thirst – does not quench – makes one thirsty
 Health – indigestion – bad for teeth – keeps one awake - acidity
◦ Sensory:
 Taste – bitter – bland – salty - sweet
 Appearance – colour – unappetizing - shape
 Consistency/Texture – tough – dry – greasy
◦ Activities
 Meal Planning - forget – get tired of it
 Storage – run out – package would not fit
 Preparation – too much trouble – too many pots – never turns out
 Cooking – burns - sticks
 Cleaning – makes a mess in oven
 Example using food….continued:
◦ Buying Usage:
 Portability – eat away from home – take lunch
 Portions – not enough in package – creates leftovers
 Availability – out of season – not in supermarket
 Spoilage – get mouldy – gets sour
 Cost – expensive – takes expensive ingredients

◦ Psychological/Social
 Serve to company – would not serve to guests – too much
last minute preparation
 Eating alone – too much effort to cook for oneself
 Self-image – made by a lazy cook – not served by a good
mother
 Developing a new idea through a list of related
issues:

◦ Put to other uses? New ways to use as is? Other uses if

modified?
◦ Adapt? What else is like this? What other ideas does this
suggest? Does past offer parallel? What could I copy?
Whom could I emulate?
◦ Modify? New twist? Change meaning, colour, motion,
odour, form, shape? Other changes?
◦ Magnify? What to add? More time? Greater frequency?
Stronger? Larger? Thicker? Extra Value? Plus ingredient?
Duplicate? Multiply? Exaggerate?
 Developing a new idea through a list of
related issues:
◦ Minify? What substitute? Smaller? Condensed?
Minature? Lower? Shorter? Lighter? Omit?
Streamline? Split up? Understated?
◦ Substitute? Who else instead? What else instead?
Other ingredient? Other material? Other process?
Other power? Other place? Other approach? Other
tone of voice?
◦ Rearrange? Interchange components? Other
pattern? Other layout? Other sequence? Transpose
cause and effect? Change pact? Change schedule?
◦ Reverse
 Developing a new idea through a list of
related issues:
◦ Reverse? Transpose postive and negative? How
about opposites? Turn it backward? Turn it upside
down? Reverse roles? Change shoes? Turn tables?
Turn other cheek?
◦ Combine? How about a blend, an alloy, an
assortment, an ensemble? Combine units?
Combine purposes? Combine appeals? Combine
ideas?
 Developing a new idea through a chain of
word associations.
◦ A word or phrase is written down – then another
and another
◦ Each new word attempting to add something new to
the ongoing thought process
◦ Thereby creating a chain of ideas ending with a new
product idea emerging.
 Developing a new idea by looking at
product combinations.
1. Isolate the elements of the problem
2. Find the relationships between these elements
3. Record the relationships in an orderly form
4. Analyze the resulting relationships to find ideas or
patterns
5. Develop new ideas from these patterns.
 Relationship/ Elements- Paper/Soap
Forms Combination Idea/Pattern

Adjective Papery soap Flakes

Soapy paper Wash and dry travel aid

Noun Paper soaps Tough paper impregnated with soap

and usable for washing surfaces

Verb-correlates Soaped papers Booklets of soap leaves

Soap “wets” paper In coating and impregnation processes
Soap “cleans” paper Suggests wallpaper cleaner
 Developing a new idea by group members
regularly recording ideas.
◦ Use a small notebook that fits into a pocket:
 Record – statement of the problem, blank pages and
any pertinent background data.
 Each group member write their own personal ideas
three times each day.
 Give to group leader at the end of the day
 Group leader summarizes all material
 Final creative focus group discussion with all
participants.
 Developing a new idea by looking at the
positives and negatives.
◦ List the attributes of an item or problem
◦ Look at each attribute from a variety of viewpoints
◦ Originally unrelated objects can be brought
together to form a new combination and possible
new uses that better satisfy a need.
 Developing a new idea by thinking without
constraints.
◦ Dream (imagine) about the problem and its solution
(think big)
◦ Every possibility should be recorded and
investigated without regard to the negatives
involved or resources required.
◦ Ideas should be conceptualized without any
constraints until an idea is developed into a
workable form.
 Developing an idea by focusing on parameter
identification and creative synthesis.
1. Parameter identification
 Analyze variables in the situation to determine their relative
importance
 Important variables are the focus and others set aside
2. Creative synthesis
 Relationships between parameters that describe the
underlying issues are examined.

Through evaluation of the parameters and relationships, one or

more solutions are developed; this solution development is
called creative synthesis.
 Immerse yourself in the topic
 Brain dump
 Develop a number system
 Have fun!
 Change your location
 Use a different technique
 Take a short break and do something
 If you are developing ideas about fibre:
◦ Grab as much fibre as you can
 Touch it
 Smell it
 Put it together in weird combinations
 Talk to people who produce, use, modify fibre
 Explore use of fibre in all aspects of human, animal, geologic
life
◦ Talk to people who use fibre
◦ Talk to people who convert fibre
◦ Talk to people who hate fibre
◦ Talk to textile experts – filter experts – basket weaving
experts – art teachers – artists – engineers - contractors
 Each person has to write as many ideas as they can
on one filing card.
 Cards are thrown into a hat
 Cards are pulled out one at a time.
 Group members then have to argue why the idea is
great.

The key is to generate as many ideas as possible.

Eventually the group can vote on the ideas they liked the most.
 Identify six possible target markets for an application of fibre:
◦ General public
◦ Boat manufacturers
◦ Chemical manufacturers
◦ Fishers
◦ Aerospace
 Develop a list of possible features.
◦ Coarse/soft
◦ Conductive
◦ Tensile strength
◦ Elasticity

 The group then has to develop as many ideas as possible using the
ingredients and the target market.
 Repeat!
Learning from Nature
 Universe
 Galaxy
 Solar System
 Planet
 Star/sun
 Earth
 Water
 Minerals
 Fire
 Flora
 Fauna
 Insect use of fibre
 Plant use of fibre
 Invertebrate use of fibre
 Animal use of fibre
 Birds
 Mammals
 Reptile
 Fish
 Saprophitic use of fibre
Out of 100 ideas or more, there may be only one or two real
opportunities.
Superior business ideas that have the potential to become
opportunities have 4 anchors:

1. They create or add significant value to a customer or end

user.
2. They do so by solving a significant problem, or meeting a
significant want or need, for which someone is willing to
pay a premium.
3. They therefore have a robust market, profit margin, and
moneymaking characteristics.
4. They are a good fit with the founder(s) and management
team at the time and in the marketplace with a
risk/reward balance.
 Technical feasibility
 Requires no initial investment
 Has a recognized, measurable
market
 A perceived need for the product or
service is present
 A dependable source of supply for
the required inputs is available
 No government regulation
 Requires no labour force
 Provides 100 percent gross
margin
 Buyers purchase frequently
 Receives favourable tax
treatment
 Has a receptive, established
distribution system
 Has great publicity value
 Customers pay in advance
 No risk of product liability
 Purposes:
◦ fully examine the potential of an opportunity
◦ identify key success factors
◦ identify critical risk factors
◦ guide the entrepreneur in start-up
◦ raise capital
 Involve all of the
management team in its
preparation
 make the plan logical,
comprehensive and
readable - and short as
possible
 demonstrate commitment
 identify critical risks and
assumptions
 disclose and discuss any
current or potential
problems in the venture
 identify several alternative
sources of financing.
 Spell out the proposed deal
and how investors will win.
 Be creative in gaining the
interest of potential
investors.
 Remember the plan is not
the business.
 Know your targeted investor
group.
 Let realistic market and
sales projections drive the
assumptions underlying the
financial forecasts, rather
than the reverse.
 Don’t have unnamed,  Don’t spend money on
mysterious people on the developing fancy brochures,
management team. or other ‘sizzle’ - instead,
 Don’t make ambiguous, show the “steak”
vague or unsubstantiated
statements such as
estimating sales on the
basis of what the team
would like to produce.
 Don’t describe technical
products using jargon that
only an expert can
understand.
 complete
 short
 integrated
 prepared for the audience
 organized