Opportunity Evaluation & Discussions on B Plan

Systematic screening Why?

Most businesses fail in less than two years Fewer than 1% of the business plans submitted to VCs get funded Business failures lead to huge collateral damages Failures are planned by lack of planning

Mullins 7 Domain Framework

Mullins 7 Domain Framework

Markets and industries are not the same things Both macro-and micro level considerations are necessary: markets and industries must be examined at both levels. The keys to assessing entrepreneurs and entrepreneurial teams arent simply found on their resumes or in assessments of their entrepreneurial character.

Mullins 7 Domain Framework

1.Micro Level Market Assessment
a) Micro level questions about target markets b) Three ways to define market segments c) Micro market test

Mullins 7 Domain Framework

1.Micro Level Market Assessment a) Micro level questions about target markets

Is there a target market segment in which we offer the customer clear and compelling benefits, at a price he or she is willing to pay? Are these benefits, in the customers minds, different from and superior in some way to whats currently offered by other solutions? How large is this segment, and how fast is it growing?

Mullins 7 Domain Framework

1.Micro Level Market Assessment b) Three ways to define market segments
1. Demography 2. Geography 3. Customer Behavior

Mullins 7 Domain Framework

1.Micro Level Market Assessment c) Micro market test
What customer pain will your offering resolve? Will customers buy what you propose to offer? Who precisely are the customers? Do you have detailed accurate information about who they are, where they live or do business or what they do? Are there other segments that could benefit from a related offering?

Mullins 7 Domain Framework

2. Macro level Market assessment
Macro Market Test

What sort of business is sought? How large is the market? How fast can it grow? How quickly can it grow in the next 6 months or 2/3/5 years? What trends can be identified and how will it affect the business?

Mullins 7 Domain Framework

3. Macro level Industry assessment
a) Porters Five forces analysis b) The macro industry test

Mullins 7 Domain Framework

3. Macro level Industry assessment
a) Five macro level questions to assess the industry based on Michael Porters five forces Threat of Entry, Supplier power, Buyer power, Threat to substitutes, Competitive Rivalry

Mullins 7 Domain Framework

3. Macro level industry assessment
b) Macro Industry Test
What industry will you compete in? Define it carefully. Based on all five forces, what is your overall assessment of this industry? Just how attractive or unattractive is it? If your industry is a poor performer overall, are there persuasive reasons why you will fare differently?

Mullins 7 Domain Framework

4. Micro level industry assessment
The Micro industry test:
Do you require proprietary elements - patents, trade secrets and so on that other firms cannot likely duplicate or imitate? Can your business develop and employ superior organizational processes, capabilities or resources that others would have difficulty in duplicating or imitating? Is your business model economically viable i.e. can you show that your company wont run out of cash quickly?

Mullins 7 Domain Framework

5. Mission, Aspiration and Risk test for entrepreneurs

Whats your entrepreneurial mission? What level of aspirations do you have for your entrepreneurial dream? What sorts of risk are you and are you not willing to take ?

Mullins 7 Domain Framework

6. The can you and your team execute? test

What are the few - only a handful, please critical success factors (CSFs) in your industry? Can you demonstrate - in past deeds, not mere words that your team taken together can execute on each and every one of these CSFs? Have you identified which CSFs your team is not well prepared to meet, for which you need help in filling out your team?

Mullins 7 Domain Framework

7. The connectedness test

Who do you and your team know across the value-chain among your customers, suppliers, competitors and substitutes?

QUESTIONS ?
Sharad Kamra sharadkamra3101@gmail.com