Is the problem real?

Objectives• Introduce opportunity identification as an

approach to entrepreneurial opportunity analysis and new venture creation

MacroeconomicChange

Entrepreneurial Motivation

Entrepreneurial Behavior

IndustryCondition

IndustryStatus

Opportunity Identification

ProblemSolutionAdvantageTeam

ValueInnovation

Competition

The Opportunity Analysis CanvasTM

Entrepreneurial Mindset

Defining the problem1. Who is your customer?

• This is the first step to defining your market and understanding the problem or desire

• Analysis of industries, markets, and value innovations narrows the focus to real customers

Defining the problem (con’t)2. What are their needs and wants?

• Focus on customer value first. • Why do they need your product? • What benefits will they gain?

– Can they make money or save money with your product?

– Can they save time with your product?– Other benefits?

Are there enough customers?• If you have a real customer, and• If you can deliver real value,• Then ask

– How many people experience these problems now? In the future?

– How many buyers are there? – Are there enough people who care about this

problem for you to be financially successful by solving the problem?

http://www.ted.com/talks/john_doerr_sees_salvation_and_profit_in_greentech

Summary• Validate your ideas about the problem and

candidate solutions– Talk with prospective customers very early in the

product development process• Engage with customers pre-prototype

– Get insights on what features and values matter– Know what they are willing to pay for the product

that you envision (before your invest in it)• Know the market size and its potential