IDEAS AND MORE IDEAS

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IDEAS AND MORE IDEAS

• Week 3
• Dr. Thomas WebbBA 346

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Chapter 4 Ideas and CreativityFrom Ideas to
Feasibility

• Great list of places to look for ideas.
• Scamper from ideas to opportunities. This is a
  great tool you will be able to use in future.
• Avoid the pitfalls a good list.
• Testing the Feasibility excellent outline in
  4.4 and example at end of chapter
• Some GREAT resources on creativity
• Heres an Idea, Taylor
• A Whack on the Side of the Head, Oech.
• Boak Sells has great ideas
• Ten Ways to Restore
• Other references in notes.

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Chapter 5-6 Part time or Full time?It all
depends!

• Chapter 5. The mini case raises the type of
  ethical issues part timers often face.
• Chapter 6. Some great examples and stories.
• Five way to get into business a good list with
  good information.
• Start one
• Buy one
• Franchise
• Inherit
• Get your foot in the door.
• Ways to increase chances of success great, read
  it!
• Do diligence and valuation great, read it!

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SCAMPERFrom ideas to opportunities a great
methodology!

• S Substitute Substitute one part of product for
  something else.
• C Combine Take two ideas not usually linked an
  see if theyll work together.
• A Adapt Make a variation of the product or
  service.
• M Magnify or modify Make one part larger or
  smaller.
• P Put in other uses Are there other uses
• E Eliminate Can you cut out part of product or
  one aspect
• R Rearrange Can it be done in a different order
  or reversed?
• One More! Look in the holes, the niches, the
  ends of a product, service, a channel, a price.
  There are often great opportunities there.

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Avoid the PitfallsMajor mistakes made even by
the big guys!

• Identifying the wrong problem
• Judging ideas too quickly
• Stopping with the first good ideas
• Failing to get the bandits on the train and ask
  for support
• Obeying rules that dont exist or shouldnt
  exist

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Testing The FeasibilityWhat do you have to know
about the idea!

• The Product Market. Will enough people buy it?
  customer and markets
• Competition. Can you beat or get around the
  competition?
• Financials. Can you price it and produce it to
  make a profit?
• People. Do you have the people to make it
  successful?
• Plan. Do you have a strategy to succeed?
• Outline 4.4 is one you should keep.The
  feasibility study at the end of the chapter is
  excellent. These are not exactly the same as
  the book product, industry/market, financial
  feasibility, plan

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Heres An Idea Let Everyone Have IdeasWilliam
Taylor

• What is the story?
• Why does it work?
• Free market concept
• The less structure the better
• Flexibility
• What does it tell us about creativity in an
  organization.
• The top doesnt necessarily know better
• Experience doesnt always work
• No one has a monopoly. just because they are
  important
• What do the sites tell us about friendship?
• http//www.ritesolutions.com/home.html
• http//www.innocentive.com/

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Roger van OechA Whack On The Side Of The Head!

• You will be able to use it. Havent been in an
  organization that didnt want to increase
  creativity and have some forums to do it.
• What are the mental locks?
• There is a right answer
• That is not logical
• Follow the rules
• Be practical
• BSAINXLEATNTEARS
• To err is wrong
• Play is frivolous
• That isnt my area
• Dont be foolish
• Im not creative
• Name a big error you made. What are the
  beneficial consequences for you?
• Name a troublesome situation you face. List 3
  what if statements.
• Nothing clouds your mind like dogma Roger van
  Oech
• Think Sideways. Edward deBono

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Roger van OechA Whack On The Side Of The Head!

• Remove six letters and come up with a common food
  most of you eat. You have 30 seconds!
• BSAINXLEATNTEARS

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Roger van OechA Whack On The Side Of The Head!

• Remove six letters and come up with a common food
  most of you eat. You have 30 seconds!
• BSAINXLEATNTEARS

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Roger van OechA Whack On The Side Of The Head!

• Remove six letters and come up with a common food
  most of you eat. You have 30 seconds!
• BSAINXLEATNTEARS
• BANANA

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DeBonos Elevator ProblemThink
SidewaysPeople are waiting too long for the
elevator and everyone complains. They get a
group together to propose solutions. They
suggest

• Speed up elevators
• Have them stop at only certain floors
• Stagger working hours
• Put in a new elevator
• Install mirrors around entrances to all
  elevators.
• 1-4 are traditional solutions. 5 is lateral
  thinking.
• They did 5 and it worked!
• People became preoccupied with looking at
  themselves and others so they didnt notice the
  wait.
• The problem was more impatience vs. lack
  of elevators!

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SCAMPER LETS TRY IT!From ideas to
opportunities a great methodology!

• S Substitute
• C Combine
• A Adapt
• M Magnify or modify
• P Put in other uses
• E Eliminate
• R Rearrange
• S Dig in the dirt

Baby Boomers, SBA Minor in Bus.,Pets, Dating
Services, Fitness, Bars, Sports, Entertainment
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SO!There are ideas out thereLots of them Find
out which ones are any good!
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Where did the ideas come from?How different are
they really?

• AltiTunes,Amy Wolf
• Entrepreneurial alertness walking through
  airport and saw an opportunity
• Auntie Annes Pretzels
• Serendipity, just tried to make an improvement.
• Stroller Strides, Lisa
• Entrepreneurial Alertness two needs combined
• Dippin Dots, Kurt Jones
• Science background and a yearn to invent.

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Where did the ideas come from?What would a
SCAMPER looks like then and now?

• AltiTunes,Amy Wolf
• To start Adapt
• Ideas for now Combine? Modify? Gap?
• Auntie Annes Pretzels
• To start Substitute, adapt, modify
• Ideas for now Substitute? Put to other uses?
• Stroller Strides, Lisa
• To start Adapt, combine
• Ideas for now Gap? Rearrange?
• Dippin Dots, Kurt Jones
• To Start Substitute, adapt, modify
• Idea for now Elminate,? Reverse?

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Lyle Wong Wants to be a millionaire! He started
very young and has been doing little ventures
since he was very young.He has no idea what he
is going to do.How do we develop a plan for him?
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Lyle Wong - The almost millionaire!

• What constitutes being a millionaire?
• Sell a business, profit generated, net worth on
  balance sheet?
• What are some of the characteristics of a venture
  that will get him there?
• Growth, multiplier, expandability
• How can we define an opportunity if he was a
  student here at PSU?
• Who has a need that is big enough?
• What is going on that is big enough?
• What areas to look in?
• A service, a product, production, distribution,
  sales?
• A store, an office, a plant, the internet?

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Lyle Wong - The almost millionaire!Where do we
look?

• Food
• Drink
• Entertainment
• Events
• Classes
• Books
• Dating
• Cheating
• Real Estate
• A product gadget

S C A M P E R Substitute Combine
Adapt Modify Put to other
Eliminate Rearrange Get in the Uses Dirt
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Lyle Wong - The almost millionaire!What did he
do!

• Identified a problem unsold tickets to events.
  It was very common for arenas and events to hold
  unsold tickets the day of the event.
• He decided to offer to sell those tickets for a
  discount plus commission, using a computer in his
  dorm room.
• He set up a system and worked out the bugs
• He expanded it to cover virtually an public event
  that was not sold out within 24-48 hours of show
  time.
• This was a win/win for everyone.
• He almost made it!

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Dave Kapell Poetry in MotionFrom Serendipity
to Success in 1000 steps!

• The Keys to his success
• Serendipity
• Entrepreneurial Alertness
• Took it out
• Went to the experts
• Did it in steps.

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Dave Kapell Poetry in MotionFrom Serendipity
to Success in 1000 steps!

• How did he discover whether his idea would work?
• Serendipity, entrepreneurial alertness and he
  took it out.
• How did he evaluate whether it could be
  successful?
• He took it out, he went to people in the know.
• What other opportunities are there
• Substitute
• Combine
• Adapt
• Modify
• Put into other uses
• Eliminate
• Rearrange
• Search for a hole.

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Product Market Matrix for Poetry in Motion
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The Grande General StoreHow do you go about
figuring how much it is worth and whether you
ought to buy it?

• Where do you look for valuation?
• Lots of places, what did you find?
• What questions should be asked on the financials?
• Why sales are up so much?
• Where is the owner paid from?
• Who did the valuation?
• What personal expenses are in the income
  statements
• What are some of the other due diligence
  questions to ask
• Inspection
• Competition
• External factors such as zoning
• Law suites
• Suppliers
• Key employees.

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The Grande General StoreHow do you go about
figuring how much it is worth and whether you
ought to buy it?
I looked under lots of headings. The one that
worked was Valuation Rules of Thumb. Finally
lots of entries. Rules of Thump are mostly for
the smell test. http//www.bizstats.com/rulesof
thumb.htm http//www.mergers-acquisitions.com/va
lu.htmlthumb http//www.bizbuysell.com/guide/s_v
alue_1.htm http//www.dinkytown.net/java/Busines
sValuation.html http//www.sba.gov/idc/groups/publ
ic/documents/wi_milwaukee/wi_salebusiness.pdf
http//www.sba.gov/idc/groups/public/documents/mi
_detroit/mi_business-valuation-methods.pdf http//
www.valuadder.com/index.html

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The Grande General StoreWhat is Due Diligence?

• Investigation to see
• If you are getting the truth
• To find out what is really going on
• To look for hidden plusses and minuses.
• A large part financial audit, tax returns,
  accountant
• Income statements what is in and not in
• Balance sheet valuations, especially intangible
  assets
• Cash Flow and profitability
• But every aspect should be included in analysis.
• Misrepresentations of seller, why for sale
  really, key employees, etc.
• Litigation, land title, environmental issues.
• External factors competition, suppliers,
  city/zoning, etc.

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SO!Think Sideways!