Business Idea Generation, Creative Thinking, Idea Screening and Business Plans :Business Idea Generation, Creative Thinking, Idea Screening and Business Plans Lakehead Shad 2007


The Process :The Process Brainstorming New Product Innovations Screening Those Ideas Business Plan Implementation


The Process - is like a funnel! :The Process - is like a funnel! Creative / Soft-Thinking (Right Brain) - brainstorm new product innovations Logical / Hard-Thinking (Left Brain) - formal business planning (opportunity screening, market forecasts, financial forecasts)


Left-Mode and Right-Mode Characteristics :Left-Mode and Right-Mode Characteristics Left-Mode (Hard-thinking) Verbal Analytic Symbolic Abstract Temporal Rational Digital Logical Linear Right-Mode (Soft-thinking) Nonverbal Synthetic Concrete Analogic Nontemporal Nonrational Spatial Intuitive Holistic Source: Betty Edwards, “Drawing on the Right Side of the Brain”


Brainstorming :Brainstorming Requires creative thinking (soft-thinking) Here are some suggestions to improve the brainstorming process: 1. Choose a facilitator 2. Brainstorm spontaneously, copiously 3. No criticism, no negatives 4. Record ideas in full view 5. Invent to the “void” 6. Resist becoming committed to one idea 7. Identify the most promising ideas 8. Refine and prioritize


Key to Brainstorming - Creativity :Key to Brainstorming - Creativity Ten mental locks or attitudes that discourage creative thinking: “The Right Answer” “That’s Not Logical” “Follow the Rules” “Be Practical” “Avoid Ambiguity” “To Err is Wrong” “Play is Frivolous” “That’s Not My Area” “Don’t Be Foolish” “I’m Not Creative”


Where are the opportunities? :Where are the opportunities? Opportunities are spawned in changing circumstances chaos confusion inconsistencies lags or leads knowledge and information gaps vacuums in industry or markets


Strategies for Spotting New Opportunities :Strategies for Spotting New Opportunities Look for opportunities in the following: things that ‘bug’ you things that bother others or stop people from doing what they want, when they want, and the price they want new advances in science and technology look for problems that need to be solved changes in our world whether those changes be in: demography society technology science politics etc.


Importance of Lateral Thinking :Importance of Lateral Thinking When brainstorming, start to combine ideas. Use each as stepping stone to something else. Don’t be afraid to experiment. Example: Two ideas: pealing paint and gun powder ----I hate scraping old paint off the exterior of my house…..I wish sometimes that I could blast it off!!! (Of course, that would destroy the house….but…) - maybe there is an additive that could be put in the paint before it is applied, that would allow us to trigger it’s easy removal.


Importance of Metaphorical Thinking(Looking at something :Importance of Metaphorical Thinking(Looking at something Metaphors often give us ideas or insights that logical thinking cannot. When ever you compare something and use the following sentence structure you are doing metaphorical thinking. Life is like riding a bike. Different metaphors will give you a whole new perspective on what it is that you are examining. Life is like a beach. Use the insight provided by different metaphors to look for ideas! Example: Dolby is like a sonic laundry. It washes out all the noise or dirt from the sound without hurting the sound.


Other Creative Thinking Techniques :Other Creative Thinking Techniques Use “What if” Questions Play with the idea Challenge the rules associated with the problem Be a magician Be a child Be ambiguous…and look for the possibilities (geeh…that pen is a pen, but it could be a pointer, a digging implement or even a weapon or projectile) Go “hunting” for ideas from other fields…ideas that could be creatively applied to your field of interest. (Like Guttenberg who used the coin punch and wine press ideas to invent the printing press.)


When are you open to Creativity? :When are you open to Creativity? At the edges of human experience: (at extremes) when you are tired when you are at rest when you are pressed by a deadline or are stressed when you are playing when you are on vacation when you are exercising Usually NOT when you are doing routine things!!!! Try doing something differently…live your day backwards…break the routine! Necessity is the Mother of Invention…but play must be the Father!


Idea Screening :Idea Screening Out of 100 ideas or more, there may be only one or two real opportunities. Superior business ideas that have the potential to become opportunities have 4 anchors: 1. They create or add significant value to a customer or end user. 2. They do so by solving a significant problem, or meeting a significant want or need, for which someone is willing to pay a premium. 3. They therefore have a robust market, profit margin, and moneymaking characteristics. 4. They are a good fit with the founder(s) and management team at the time and in the marketplace with a risk/reward balance.


Characteristics of the "Ideal" Business Idea :Characteristics of the "Ideal" Business Idea Ø   Requires no initial investment Ø      Has a recognized, measurable market Ø      A perceived need for the product or service is present Ø      A dependable source of supply for the required inputs is available Ø      No government regulation Ø      Requires no labour force Ø      Provides 100 percent gross margin Ø      Buyers purchase frequently Ø      Receives favourable tax treatment Ø      Has a receptive, established distribution system Ø      Has great publicity value Ø      Customers pay in advance Ø      No risk of product liability


The Business Plan :The Business Plan Purposes: fully examine the potential of an opportunity identify key success factors identify critical risk factors guide the entrepreneur in start-up raise capital


Business Plan Do’s :Business Plan Do’s Involve all of the management team in its preparation make the plan logical, comprehensive and readable - and short as possible demonstrate commitment identify critical risks and assumptions disclose and discuss any current or potential problems in the venture identify several alternative sources of financing. Spell out the proposed deal and how investors will win. Be creative in gaining the interest of potential investors. Remember the plan is not the business. Know your targeted investor group. Let realistic market and sales projections drive the assumptions underlying the financial forecasts, rather than the reverse.


Business Plan Don’ts :Business Plan Don’ts Don’t have unnamed, mysterious people on the management team. Don’t make ambiguous, vague or unsubstantiated statements such as estimating sales on the basis of what the team would like to produce. Don’t describe technical products using jargon that only an expert can understand. Don’t spend money on developing fancy brochures, or other ‘sizzle’ - instead, show the “steak”


A Good Business Plan is... :A Good Business Plan is... complete short integrated prepared for the audience organized