Opportunity Assessment

Supplementary Materials

OPPORTUNITY ASSESSMENT APERTURE (particularly suitable for new ventures)

 

Market Opportunity

  • Overall size/growth?
  • High value to potential customers?
  • Visible customers?
  • Leverage from first customers?
  • Clear advantage vs. alternatives
  • Demand >> supply ?

 

 

Sustainable Advantage

  • Unfair advantage(s)? (technology, cost, marketing, delivery, time )
  • Uniqueness vs. competitors/alternatives?
  • Cash flow soon?
  • Preemption and domination of mkt possible?
  • Ability to sustain advantages?
  • Showstoppers?

 

 

Competitors

  • Entrenched competitors?
  • Exposure to overtaking or ambush?
  • Competency competitors don't have?
  • Speed advantage?
  • Competitors' ability to replicate?
  • Competitors as partners?

 

 

Market Entry

  • Viable entry strategy?
  • Low hanging fruit?
  • Punchy, compelling story?
  • Marketing costs?
  • Ability to create hype?
  • High profile person available?

 

 

Ability to Execute (to profit)

  • People with experience/track record?
  • Ability to scale?
  • Strategy to cross chasm?
  • Margin? (revenue >> costs)
  • Geography/facilities
  • Time to market?

 

 

Funding/Resources

  • Manageable seed capital requirements?
  • Seed capital visible?
  • Contacts? References?
  • "Hot" area?
  • Clear exit strategy (investor liquidity) ?
  • Bootstrap opportunities?

 

© January 2000 by Thomas McKnight and Carl Pavarini Entrepreneurial Ventures in Telecommunications and Electronic Media Columbia University Graduate School of Business