•Venkatesh Krishnamurthy

•Author: A Comprehensive Guide to E-Commerce (ISBN

9789352685998), Create Profitable Products (ISBN
9789352127832) and Marketing of Information Technology
(ISBN 9780070248724)
•www.linkedin.com/in/kvenkatesh
•kvenkatesh.mail@gmail.com

Whetting the E-Business

Concept
What is "Concept Acceptance"?
Concept Acceptance

Is this E-Business
addressing a null point Is the E-Business
Initial whetting of the E- To find out whether the in the market? concept acceptable to
Business concept E-Business is viable
• Is the null point intentional? the relevant parties?

Team and role How much money is Document it! (CA

Will the investor fund?
definition needed to launch? Document)
Concept Acceptance Document

First stage in attaining Internal to the

Description of E- Description of all
clarity of the E- company / Co-founders
Business parties and their roles
Business concept and investors
• authored by the • In simple business • Imposes
Founder(s) language responsibility on
• Description of the participants
sources of revenue
and the cost drivers
Who whet(s) the E-Business concept?

Founder – instinct / Co-Founders – may Confidantes, well- Grant of patent Creditors Angel investors
determination / risk ideate and evolve wishers
appetite the idea
Is it OK to bring in
investors at idea stage?
Equity versus debt
What role does the patent
grant / application play?
How to assess the viability of the E-Business
concept?
Viability of the E-Business concept

Is it Legal?
• Lawful goods and services
Is the idea agreeable to
• Lawful payment mechanisms Who pays?
• Lawful currencies (Bitcoins in all the Co-Founders?
Web underground!)

What is the benefit and Which region /

SWOT
who is the user? country / state?
More points on the viability of the E-
Business

Is there some proof Which of the How long is this E- Will the co-founders Does the idea need "What if...?"
of the viability of following is the E- Business expected fund? improvisation?
this E-Business in Business – life-saver, to be relevant to the
the market? painkiller, cosmetic? market?
Are the nearest What type of innovation is
competitors profitable? it – incremental /
What are the revenues of disruptive / integration?
the nearest competitors
Why define roles of team members?
Role definition

Team member - role Measure of participation Justification of role Avoid redundancy Avoid conflicts,
matching heartburn
Investment Experience
Operations Education
Nationality requirements
Other Legal aspects
• e.g., Security Clearances
How is CA conducted?
 How is CA conducted?

Seed investors / Documenting for the

May be informal Consulting experts
creditors Co-founders' use
• Consulting with • Academicians, • Under NDA? • SWOT
family and friends practitioners
• Idea should be
safeguarded
Why is CA necessary?
Uses of CA

Validation Identify potential

Clarity on utility More ideas - on challenges
• Precaution: no one is a
visionary value / benefit / pricing, variants,
• Planning for mitigation
use etc.

Deciding on the When to go to Last stage to exit Investment

MVP (platform!) market? without loss decision
What are the actionables from CA?
Follow-up on CA

Re-think / modify Business Plan / Prototype / Alternatives Fund / seek investments, if

Pilot necessary
Business concept / model
Roles
Investment
 Business Plan, Prototype and Pilot

Pilot may be
Confident Founder /
A Business Plan helps Prototyping may be inexpensive (relative to
Co-founders may not
in clarity necessary the founders' risk
do a CA
propensity)

Technology
Just pilot it!
challenges

User
behavior may
be unknown
Discuss the CA template