AAπό την ιδέα στην υλοποίησηπό την ιδέα στην υλοποίηση

Vasilis Theoharakis, Ph.D.Associate Professor of Marketing &

Entrepreneurship

www.alba.edu.gwww.alba.edu.grr

Thomas EdisonThomas Edison

“I have not failed. I successfully discovered 1,200 ideas that don’t work.”

• Certainly Edison is known for his successes rather than those failures, but the point is that he refused to concede defeat

• From his determination to actuate ideas that did work, he rose above his disappointments

What was Dietrich Mateschitz thinking in 1984?

Milk from Mt. Olympus?Milk from Mt. Olympus?

Ideas!!!Ideas!!!

• A good idea is the first step • The importance of the idea is usually

overemphasized – at the expense of the need for products and services

that can be sold at enough quantity to real customers

• but the best technology or idea by itself is not enough

• Having the best idea first is by no means a guarantee for success

• Do we understand the reason no one has offered our solution before?

When is an Idea an Opportunity?When is an Idea an Opportunity?

• An opportunity is– attractive

– durable (sustainable)

– timely

– anchored in a product/service which creates or adds value for its buyer or user

• The “window of opportunity”– remains open long enough

– the management team is able to achieve market entry

– competitive advantage

– the economics of the venture are rewarding and forgiving

What makes a great opportunity?What makes a great opportunity?

• The greater the growth, size, durability, and robustness of the gross and net margins and free cash flow

• The more imperfect a market– The greater the rate of change, the discontinuities, and

chaos

– The greater the inconsistencies in existing service and quality, in lead times and lag times

– The greater the vacuums and gaps in information and knowledge

Are you thinking too small?Are you thinking too small?

• One of the biggest mistakes of aspiring entrepreneurs– simple, more affordable, more manageable– appear less risky, less demanding

• Chances for survival are lower– if they survive, they are less financially rewarding

• The Arthur Rock opportunities criterion– businesses that change the way people live and work

Screening Venture OpportunitiesScreening Venture Opportunities

• Four Anchors– create significant value to the consumer– solving a significant problem or meeting a need for

which someone is willing to pay a premium– robust market, margin

• size, growth, high margins, cash flow, low assets, high returns

– Good fit with the founders

• Good Opportunities create more options– Avoid being locked into a single course– Allows for midcourse corrections

Resources: Creative and ParsimoniousResources: Creative and Parsimonious

• Misconception: all resources must be in place• Thinking money first is a big mistake

– it follows high potential opportunities conceived and led by a strong management team

• Venture Capital Backing?– not only VCs but also Angels

• private investors that are in search of high potential, higher growth ventures

– Find financial backers that add value• The notion of bootstrapping

The Entrepreneurial TeamThe Entrepreneurial Team

• What do venture capitalists say?– “I prefer a Grade A entrepreneur with a Grade

B idea over a Grade B entrepreneur with a Grade A idea”

– “What is in short supply is great teams”– “If you can find good people they can always

change the product”

How to form teamsHow to form teams

• There is no simple answer…– It depends on what the opportunity requires!– Team complements and balances the leader

• Questions to ask:– What is the relevant know how that we need?– What are my/our strengths in that area?– Do I/we have the contacts/network required?– What are the critical success variables of the

business?

““Whole brain” teamsWhole brain” teams

Problem Solver

Mathematical

Technical

Analyzer

Logical

Planner

Controlled

Conservative

Organizational

Administrative

Talker

Musical

Spiritual

Emotional

Interpersonal

Conceptualizer

Synthesizer

Imaginative

Holistic

Artistic

The Timmons ModelThe Timmons Model

Opportunity Resources

Team

AmbiguousExogenous

Forces

Creativity Leadership

Business Plan

Fits and gaps

Communication

Uncertainty Capital Market Context

Entrepreneur’s Mental AttitudeEntrepreneur’s Mental Attitude

• Do what gives you energy - have FUN!

• View the situation with optimism

• Concentrate on making things work, not on what “cannot be done”

• Take calculated risks

• A team builds a business; an individual earns a living

• Make opportunity and results your obsession - not money

• Make the pie bigger - do not waste time in cutting it in small pieces

• Play for the long haul - rarely possible to get rich quick

Racquet drop Contact point Follow through

Business Plan CompetitionsBusiness Plan Competitions

European Business Plan Competition of the Year

Participation of top EU Business Schools (INSEAD, LBS, Imperial, Bocconi etc)

Consistently among the finalists since 1st participation (2001-05)

Only LBS holds the same record

ALBA is the only business school to become a finalist from its first year of participation

1st Prize winner in the European Business Plan Competition of the Year 2003 and 2005

2004 competition held at ALBA

VENTURE 2002 Competition (Greece)

winners of 7 awards (2 of the 3 final awards)

1st Prize winner at the “Ιδεοδρόμιο” Business Plan Competition (Cyprus)

European Business Plan CompetitionEuropean Business Plan Competition

Industry Wants People with Entrepreneurial SkillsIndustry Wants People with Entrepreneurial Skills

• Entrepreneurship and decision making• Ability to manage complexity and uncertainty• Problem formulation as well as problem solving• Ability to advocate and influence• Ability to function in multidisciplinary teams• Ability to realize products

Who Recruits ALBA GraduatesWho Recruits ALBA Graduates