Screening Venture Opportunities

1
Screening Venture Opportunities

• Problem to be addressedenvironmental problem
• Opportunity for the venture
• Key market segmentthe client
• Characteristics
• Value to the market segment or the client
• What would they be willing to pay?
• Pricing
• Market size
• Estimated total sales
• large
• Market growth
• Need rapid
• Return to the venture
• Gross sales
• Rate of return

2
Screening Venture Oppportunities

• Competitive advantage
• Why you?
• Major competitors?
• Will they take your market?
• Cost advantage?
• Proprietary advantage
• First mover
• Product/service differentiation
• Lead time
• Value chain
• Resources/contacts/knowledge
• Your team

3
Screening Venture Opportunities

• Opportunity Concept and Strategy Statement
  Exercise 1
• Opportunity ProfileExercise 2
• Industry, market size, growth, need, segment
  (client), benefits, value added, life time,
  costs, revenues
• Anticipated profits
• IRR, sales growth, break even, gross margins,
  costs
• Exit strategy
• Competitive Advantage
• Costs
• Barriers to entry

4
Screening Venture Opportunities

• Management Team
• Exercise 3. More details on the opportunity.
• Critical problem to be solved
• Who is most concerned about it? Client. Target
• Value to them? How will you determine?
• Market niche.
• Substitutes?
• Value chain opportunitieslogistics, inventories,
  production, shipping, support, delivery