Andrew (Gabriel) Livshits, Jaroslav Vashchuk
Information in a perfect world
If all the great ideas are worth their weight in gold, how to measure the weight that should be added to the idea that it turned into a golden opportunity to do business?
The process begins immediately after the entrepreneur visits the inspiration when it comes to my mind an idea that could be worth (assuming that in this case is an inventor and entrepreneur - this one and the same person)
That's when he (the inventor-entrepreneur) would be very useful to get important business information. Without it he would not be able to present its arguments the idea to attract the capital and other resources required for further movement.
Is it true?
At the moment we have learned many things that are intuitively clear. We realized that this Scorecard to evaluate the effectiveness of the commercialization of our innovative creations. We stopped at each item and asked why we chose it for consideration, not forgetting that the whole idea of commercialization makes sense only if it is implemented for the introduction of a life really worth the technological development.
And now the most pleasant question, which obviously must be set in our large classroom. What we have lost sight of? What more could we ask, what is not interested, and why not ask about it so far? To be well prepared for what has yet to still give to aim as high as possible.
What we would ideally find an entrepreneur, if were going to make an objective decision about the necessity of investing?
Going through the list items which some investors view as a prerequisite of investment, you will encounter a serious problem. Let us discuss for the start that it would be very nice to know (note that professional financiers to these questions seem familiar). And then the "problem" will manifest itself.
Factors for an objective assessment of the situation:
A. Buyers and demand
The first and probably most important question is: who are your customers and what is the intensity of demand for your product? How many customers you have? What part of your product they will get? How often do they shop? How many products are usually sold at one time? What price will satisfy the demand of buyers and at the same time provide you with a reasonable margin? Where are your customers? How many customers must acquire your product today? Where do they expect to get it?
Two. Expected benefits for the buyer
and the required characteristics
What are the benefits expected by the client? What are the characteristics of the product contribute to the realization of these benefits? What are the priorities? Which characteristics can be waived or get rid of? What will it cost each "freaks"? What are the characteristics of the product can be achieved without much difficulty, and your competitors do not?
Three. The added value of
What additional value is your product to the customer, which gives him the advantage, or how he improves his business? So you've shelled out for the resources needed to deliver goods to the buyer, take into account price and other profits, and what do you see the difference? Here you can take into account all costs and revenues chennye floor. Can you accurately predict how to increase value? Can you describe this increase is not simply a calculation of your expected income, and more picturesque terms?
4. Market structure
What kind of market in question, the diversified or consolidated? Local, regional, national or international? How important is the role of merchants, wholesalers for the sale or distribution of the process? How much control in the hands of wholesalers, or distributors? And how can we avoid them? Your product is designed for retail consumers, or it will detail
designed for a larger building or group of products? What other aspects of the market your product can realize itself?
Five. The scale
Is it large enough market to support your business? What size should reach your business to be consistently successful? Do your scale comparable to the size of the market? What are your projections of your competitors and the market share that should be provided by you, your business has been
This forecast and analysis will help you a great knowledge of the laws of engineering systems described in TRIZ and ARIZ and its recent modifications, considering your product as a technical system, you can trace the development trends and to compare the present state of the market with the potential for its development in the short term and the strategic perspective and depth
6. The growth potential
Can the residual demand to support acceptable growth rate after the initial introduction to the market? Will it increase your success, or stabilize, or business will move quickly to the far slope of the maturity curve?
7. The potential market share
What market share will "own" business? Can it reach 100%? What goods are substitutes on the market today?
Eight. The structure of marketing
and production costs
As will appear fixed and marginal costs of your company compared to competitors? How to fit into this picture cost of servicing debt and paying interest?
9. Profit after tax
What revenues are expected in the next five years? Are there any weak spots in the calculated rates?
10. Return on investment (ROI)
What kind of return can be predicted on the five-year term?
What are the expected exact capital needs for the next five years? To prepare for the launch, the actual launch and the first year of operation.
12. Internal Rate of Return
What is the expected internal rate of return (Internal Rate of Return - IRR) over five years for each investment?
13. Cash flow
What is the expected cash flow for the next five years?
14. Research and development
What are the costs of R & D (Research and Development - R & D) are coming over the next five years?
This question is one of the most important from a technical point of view, is very difficult to make forecasts for the development of technology is related to your technology direction, but at the same time we must once again consider all the details of your technology and in-depth analysis of all aspects relating to the 40 main and 10 supplementary methods TRIZ and ARIZ;
In order that fluent in these techniques, the analysis indicated quite specifically and clearly say whether it is necessary to plan your time, direction, and expenditure on research and development
What is the projected value of the margin for the next five years?
16. Time to reach the break-even threshold
How long does it take to reach break-even threshold?
17. Comparable quantities characterizing the value of
What are the prices of comparable products installed by your competitors operating in the market?
18. Capital Markets
Will the capital markets to provide you with investment?
19. Pricing Policy
Is the low price set by you to ensure that large-scale introduction to the market? Are they high, to reward shareholders?
Can the distribution system to support your business? Will there be a chain of distributors to cooperate with you when you embark on starting the business?
21. Protection of property
Is it possible to protect the enterprise with the help of the patent or other means?
We offer once again return to the patent and licensing strategy, published on the website of Yaroslav Vashchuk
Prediction of the situation with the algorithmic structure of this strategy can help you at minimal cost and in a very short time to fully resolve all the issues of protection of intellectual property and the diversification of the new enterprise, and perhaps give an opportunity to get to this new enterprise product for technology transfer and an additional significant source of income of the new enterprise
22. The period of development of new products
Is the short period of lead time to ensure the timely success?
Favors a legislative field of the protection of the company? Do you have attorneys licensed to work in your state, whether they are competent in the relevant aspects of the legislation? Indicates whether anything on the conflict of interest? Does not have to tell you too much to find out about the conflict? Do not become known in this case, your secret?
Is it possible to conclude contracts in the normal products, services and attracting talents necessary for the timely delivery of the product and ensure the viability of the enterprise?
Is well organized and the owners of the team that would quickly realize the opportunities and threats reflected by converting them into assets and opportunities?
26. Key people
Can you find all the key people in leadership positions? Who will it be? When?
Is your experienced managers to perform their tasks and make the company successful?
Do the leaders of the reputation of a reliable and honest people? Can you find out about it without compromising your sources?
Do your managers are adapted to the realities of business? Maybe they spent too much time in the snow-white locks of corporate America?
Do your managers are resistant to the uncertainties and hardships of starting a new business?
31. Distribution of time
Do you interfere with something now to observe the launch date of the project? (Managers, product, competition, consumers, etc.)
Are there any obvious technical difficulties, such as the threat of competition, the weakness of the technology that is protected by copyright, or the inability to compete?
Are the managers, board members and vendors the flexibility required to reach a quick and deft maneuvering in a suddenly emerging threats and new opportunities?
Is it possible to promptly produce and deliver the product with less than able to help out at the right price sales?
Obviously, this list is not complete. However, for our purposes, it is quite good.
But now we have clearly delineated a problem.
The fact that these 34 points are meaningful only in a perfect world! By asking these questions and seeking answers, you have to waste hundreds of thousands of dollars on all sorts of research and analysis.
It would be naive to believe that this information will get at least some form, and benefit from it in real time.
You may wonder why we do not have these elements in the Scorecard.
Yes, because all of them in particular, and together represent an objective toward scorecard, rather than subjective.