DEPARTMENT OF ORGANIZATION STRATEGY & LEADERSHIP

Course Title: New Venture Creation and Management

Course Code: OSL E 127

Report

On

Turning an IDEA into a viable business opportunity (Using 24

steps of disciplined entrepreneurship)

Submitted to:

Md. Rashedur Rahman, Assistant Professor

Department of Organization Strategy & Leadership, Faculty of Business
Studies, University of Dhaka

Submitted by:
Md. Mahin Nur Islam
ID: 91805044

Date of Submission: 28.02.2021

Step 1: Market Segmentation
We have narrow down the market based on below factors:
1. Search a market which is the most internet user, market is not fragmented like other part of the
county, and has large number of our targeted customer.
2. Large number of people use mobile phones, computer or electronic gadget to communicate.
3. The customer have ability to buy our service as it will be much cheaper.
4. No other competitor with such services/platform is in this segment.
5. There is huge scope to enter additional market if we able to win this segment, such as
Bangladesh and abroad.

The market segmentation process identifies multiple potential market opportunities. Once I have a
list of potential markets, direct market research-based analysis on a finite number of market
segments will help me determine which markets are best for my idea or technology. The goal of
the research is not to provide a perfect solution, but to present a wide spectrum of market
opportunities as I start to think about where you will focus my business. Primary market research,
which involves talking directly with customers and observing them, is by far the best way to identify
good market opportunities. This research will help me select a beachhead market in the next step.

Step 2: Select a Beachhead Market

In This Step, I Will:
 How to Choose My Beachhead Market
 My Beachhead Market Still Needs to Be Segmented Further
 Almost all customer of that beachhead market use smart phone with a minimum standard to
brows videos, audios and different format’s files. The technology is already existing and using
by the customer.
 It is an assumption the most of customer have ability to buy our service as it will be much
cheaper.
 No other competitor with such services/platform is in this segment.
 There is huge scope to enter additional market if we able to win this segment. It will be easy to
expand after winning beachhead market.
 Several demographic characteristics.

Step 3: Build an End User Profile

In This Step, I Will:
 Why Target a Specific Demographic?
 Does My Founding Team Include Someone in the End User Profile?

Summary
My analysis of my target customer is nowhere near complete, but the End User Profile points me in the
right direction for future steps. The journey is only beginning, but I am starting with the right focus—a
well-defined target customer. This is a critical step in my search for specificity and starting to make my
customer concrete and very real. It is also a critical part of the process to help ingrain the mentality that
I should build the company around the customer’s needs, not based on my interests and capabilities.
The latter does matter, but it is secondary to how I should think about my business.

Step 4: Calculate the Total Addressable Market (TAM) Size for the
Beachhead Market
In This Step, I Will:
 Bottom-Up Analysis
 Top-Down Analysis
 From “How Many End Users?” to “Show Me the Money”
 What Should My TAM be?

Summary
The TAM is how much annual revenue I would accumulate if i achieved 100 percent market share. This
is used only for my first beachhead market. A bottom-up analysis, where I can show how many potential
customers I have identified from my primary market research and generalized to the broader market,
will give a more accurate picture of my market. Complementary to this, but much less compelling on
its own, is a top-down analysis where i am working with market analysis reports and extrapolating
without direct interaction and validation. Often, very important subtleties are missed in top-down
analyses, so I need both.

Step 5: Profile the Persona for the Beachhead Market

Persona is the representative of customer of the beachhead market. We will build our product by
focusing on the persona. As I have students, teacher and content developer as client or customer, I had
to select persona for each customer of our beachhead market who represents the customer’s common
characteristics. I have also created a persona for parents as parents will have significant influence to
buy our services and products.

Step 6: Full Life Cycle Use Case

During our academic study we always need help from outside of class. We seek help from other
students, private tutor, class teacher and relatives or known skilled person. All those attempt cost us
time, money and energy. But if we get help without much effort and understand what we need to learn
and can access anytime it will obviously mitigate such needs. Customer will know about our product
and services mostly from online advertisement; such as various study sites, social media, online library,
google advertisement, online newspaper and publications, other online platform etc. In the platform
there will be some parameters how customer will find out own improvement and compare with his/her
earlier performance. This platform can be used in mobile or computer and can be found in company’s
website, google play store, apple store and other online storages. Customer will able to download and
install the apps or platform’s gateway and register from such sources. Customer will be able to install
the apps or platform’s gateway free. The platform will be aligned with customer’s needs; such as
student’s academic syllabus, teachers content requirements and study material outsourcing etc.
Customer will able to compare pervious performance with multiple metrics within the platform. They
will able to pay online for product or services. There will be a community page/blog, help & support
team and guideline, FAQ section and supervision of teachers. Customer have to buy services for each
subject and students will be able to follow multiple teacher for same subject if he wishes. Students have
to pay teacher fee each month, teacher will order to create content frequently to remain updated. As
each customer will have certain metrics to assess own improvements, they will always try to express
their improvement to others, this will help to enhance the platform’s brand.

Step 7: High-Level Product Specification

In This Step, I Will:
 Creating a High-Level Product Specification
 Then, Make a Product Brochure
Summary
Outwardly spreading out my item will permit my group and my expected clients to combine around a
comprehension of what the item is and how it benefits clients. Remaining at an undeniable level, without
an excessive number of subtleties or an actual model, takes into account quick modification without
contributing a lot of time and assets this from the get-go during the time spent making my new pursuit.
Building a visual portrayal of the item will probably be more diligently than I might suspect, however
will get everybody on the same wavelength, which will demonstrate incredibly significant going ahead.
A pamphlet with highlights, capacities, and advantages to the client further explains my item offering
and is an incredible supplement to the photos I make.

Step 9: Identify Your Next 10 Customers

In This Step, I Will:
 How to Complete This Step
 Is the Current Persona Valid?
 Dealing with Negative Feedback
Summary
Identifying and interviewing my Next 10 Customers now ensures that my Persona description and other
assumptions hold for an array of customers. If I have completed this step properly and made
modifications to the other steps from what I learned here, I should have great confidence moving
forward to build the plan for my new venture.

Step 10: Define Your Core

In This Step, I Will:
 A few Examples of Core
 How to Define my Core
 What about Intellectual Property? or then again Culture?
 Core Is Different than Competitive Position
 First-Mover Advantage Is not a Core
 Locking Up Suppliers Is Typically not a Core
Summary
Characterizing the Core is the initial step where you invest a ton of energy looking inside, as opposed
to the solid client focal point of a considerable lot of different advances. The Core is the thing that I
have that my rivals don't, that I will secure extra time regardless of anything else, and that I consistently
stay at work past 40 hours to create and upgrade. When I concede to a Core, it ought not change without
a lot of thought; all things considered, I ought to consistently make my Core more grounded. In the
event that it changes regularly, this is an awful sign since it implies I am likely not structure it
adequately. Be that as it may, it can change as I find what my clients esteem most and what I excel at.
Characterizing my Core isn't simple and may appear to be conceptual, yet it is a fundamental advance
to boost the estimation of my new business.

Step 11: Chart Your Competitive Position

In This Step, I Will:
 The Toughest Competitor of all: The Customer’s Status Quo
 How to Chart My Competitive Position
Summary
Characterizing my Competitive Position is a speedy method to approve my item against my opposition,
including the client's business as usual, in light of the main two needs of the Persona. In the event that
I am not in the upper right of the subsequent graph, I ought to reconsider my item, or if nothing else the
manner in which I am introducing it. This will likewise be a viable vehicle to impart my subjective (not
quantitative) offer to the objective client crowd in a manner that ought to impact them.
Step 12: Determine the Customer’s Decision-Making Unit (DMU)
In This Step, I Will:
 Primary Roles in the Decision-Making Unit
 Additional Roles in the Decision-Making Unit (DMU)
 How to Determine the Decision-Making Unit
Summary
Characterizing my Competitive Position is a speedy method to approve my item against my opposition,
including the client's business as usual, in light of the main two needs of the Persona. In the event that
I am not in the upper right of the subsequent graph, I ought to reconsider my item, or if nothing else the
manner in which I am introducing it. This will likewise be a viable vehicle to impart my subjective (not
quantitative) offer to the objective client crowd in a manner that ought to impact them.

Step 13: Map the Process to Acquire a Paying Customer

In This Step, I Will:
 How to Map the Process
 Budgeting/Purchasing Authority
 Time Is of the Essence
 Consumer Versus B2B
Summary
Deciding the Process to Acquire a Paying Customer characterizes how the DMU chooses to purchase
the item and distinguishes different hindrances that may obstruct my capacity to sell my item. From
prolonged deals cycles to unexpected guidelines and concealed deterrents, selling an item can some of
the time be definitely more troublesome than basically addressing the Persona's necessities. This
progression ensures I have distinguished all the likely traps in the business cycle.

Step 14: Calculate the Total Addressable Market Size for Follow-on
markets
In This Step, I Will:
 How to Calculate Broader Tam
Summary
The Calculation of the Broader TAM ought to be a speedy approval that there is a greater market and
ought to console colleagues and financial backers that my business has extraordinary potential in both
the present moment and long haul.

Step 15: Design a Business Model

In This Step, I Will:
 A Business Model Is Not Pricing
 Key Factors When Designing a Business Model
 Free Is not a Business Model
 Generalized Categories of Business Models
 Think Outside the Existing Categories
Summary
The business model is an important decision that I should spend time focusing on. The decisions I make
here will have a significant impact on my profitability, as measured by two key entrepreneurship
variables: the Lifetime Value of an Acquired Customer (LTV) and Cost of Customer Acquisition
(COCA). Do not focus on pricing in this step, as my choice of business model has a far larger influence
on profitability than my pricing decisions. Once I have established a business model, it is possible but
generally not easy to change to a different model. Therefore, choose a business model that distinguishes
me from competitors and gives me an advantage over them, because they cannot easily change their
business model to match mine.

Step 16: Set Your Pricing Framework

In This Step, I Will:
 Basic Pricing Concepts

Summary
Pricing is primarily about determining how much value my customer gets from my product and
capturing a fraction of that value back for my business. Costs are irrelevant to determining my pricing
structure. I will be able to charge a higher price to early customers as opposed to later customers, but
be flexible in offering special, one-time-only discounts to select early testers and lighthouse customers,
as they will be far more beneficial to my product’s success than the average early customer. Unlike my
business model, pricing will continually change, both as a result of information I gather and as my
progress throughout the 24 Steps, as well as in response to market conditions.

Step 17: Calculate the Lifetime Value (LTV) of an Acquired Customer

In This Step, I Will:
 Key Inputs to Calculate the LTV
 How to Calculate Lifetime Value
 How to Calculate the LTV: “Widget” Plus Yearly Maintenance Fee
 Important Considerations
Summary
The Lifetime Value of Acquired Customer estimation is the benefit that another client will give all
things considered, limited to mirror the significant expense of securing capital that a startup faces. It is
essential to be practical, not idealistic, while computing LTV, and to know the fundamental drivers
behind LTV so I can attempt to expand it. I will contrast the LTV with COCA – Cost Of Customer
Acquisition. A LTV: COCA proportion of 3:1 or higher is the thing that I will focus on.

Step 18: Map the Sales Process to Acquire a Customer

In This Step, I Will:
 Four Factors Entrepreneurs Often Overlook about Customer
 Acquisition Costs
 My Sales Process Changes over Time
 How to Map My Sales Process
 Sales Process Comparisons: Zynga, Groupon, LinkedIn, Facebook
Summary
Planning the business cycle is a smart first pass at how I will enter the market, refine my business
methodology over the long haul, and at last build up a cheap long haul procedure for client obtaining.
The business interaction incorporates making mindfulness, instructing the client, and dealing with and
preparing the deal. The business cycle drives the COCA, one of the factors – alongside the Lifetime
Value of an Acquired Customer – that shows your business' productivity.
Step 19: Calculate the Cost of Customer Acquisition (COCA)
In This Step, I Will:
 Why Coca Matters
 How not to Calculate Coca: A bottom-up Perspective
 The Right Way to Calculate Coca: A top-down Perspective
 How to Reduce Coca
Summary
Now, I have finished the significant strides of deciding if the financials of my business will work. The
LTV and COCA investigation can slaughter numerous new organizations by recognizing issues from
the get-go in the process yet more frequently it features the significance of watching out for key
components to make the business effective. It gives a less difficult scoreboard than a budget summary
and permits me to change and refine my business. It makes my way to progress more straightforward.
Try not to allow my idealism to dazzle me in doing the figuring. Make the numbers genuine and not
what I need them to be.

Step 20: Identify Key Assumptions

In This Step, I Will:
 How to Identify My Key Assumptions?
Summary
Identifying key assumptions is the first part of the process to validate my primary market research by
looking for customers to take specific actions, which will happen in the next step. Before the
assumptions can be tested, they need to be broken down into their parts, so that each assumption
represents a specific, narrow idea that can be empirically tested in the next step using a single
experiment design. Do not worry about how I will design the experimental yet. Focus on breaking out
all the key assumptions, because if I skip over an assumption fearing that testing it is difficult, you will
neglect a potentially important factor in your business’s health.

Step 21: Test Key Assumptions

In This Step, I Will:
 Now That We Have Identified the Assumptions, Let’s Test them
Summary
Testing key assumptions, particularly the most significant assumptions, such as cost targets and interest
of lighthouse customers, prepares me well to sell my product because it complements the primary
market research–based approach I have already taken. The convergence of my market research with
empirical results from my experiments prepares me to put together a first-pass product and sell it to
customers.

Step 22: Define the Minimum Viable Business Product (MVBP)

In This Step, I Will:
 Three Conditions of a Minimum Viable Business Product
Summary
I have previously tested individual elements of my business; however, the Minimum Viable Business
Product (MVBP) represents a systems test of a product that provides value to the customer. The
paying customer can use this to start a feedback loop that helps me iterate better versions of the
product.

Step 23: Show That “The Dogs Will Eat the Dog Food”
Take my Minimum Viable Business Product to the clients to check whether they will utilize and pay
for the item. Gather information to check whether they are utilizing it and how connected with they are
as clients. Decide whether they, or somebody related with them, will pay for it and in the event that
they are upholding for my item with verbal. After I gather information over the long run, dissect it and
particularly search for patterns and comprehend fundamental drivers. Ensure I am mentally legitimate
and depend on certifiable information and not theoretical rationale.

Step 24: Develop a Product Plan

Building up an item plan resembles the progression to ascertain the more extensive TAM. The thought
is to stretch my speculation beyond so I raise my sightlines and don't get too stalled in my foothold
market, which is just my initial step as a business. I need to extend from the foothold. It gives me a
drawn out vision that keeps me coming to and thinking ahead, particularly in the plan of my item and
association. Try not to invest an excessive amount of energy here, however, on the grounds that I
actually need to get the canines to eat the canine food today, or probably I will run out of cash some
time before entering contiguous business sectors. Plans will change as I gain more from the foothold,
however don't have an arrangement is to placed myself in the possession of karma rather than my
efficient cycle.