MBA'PM 586 Introduction to Entrepreneurship Fall 2006 Tom OMalia Gene Miller

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Entrepreneurship Boot Camp Concept
Development
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This is the simplest and most complex part of
Entre

• Going from Ideas to testable structures
• When people ask for my opinion, they usually
  start by asking,
• how do you like my idea
• My options Lie I love it!!!!
• Ignore Nice (with a smile)
• My challenge If I tell them something, good or
  bad, they change their idea

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From Idea to Concept

• What is a concept?
• The clear articulation of
• a customer (the person that pays you),
• a means of reaching, educating and delivering to
  that customer (distribution channels)
• and the benefit (not to be confused with
  features) the customer wants you to delivered.

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What is a concept?

• The clear articulation of a customer (the person
  that pays you), a means of reaching that customer
  (distribution channels) and the benefit (not to
  be confused with features) to be delivered.

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Concept Articulation of a customer, a means of
reaching that customer and then delivering their
benefit need.
Channel
Customer
Benefit
E
Money
Business Model
Business Model the actual transactions model(s)
that creates the revenue
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Concept Grid InAction?

• Using your knowledge of the industry and your
  talking to strangers, prepare a Working Concept
  Grid listing
• Each potential customer
• All potential distribution channels
• The benefits each wishes to receive
• List at least two business models

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Concept Articulation of a customer, a means of
reaching that customer and then delivering their
benefit need.
Customer Channels
Benefit
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• Tom OMalia Orfalea Chair for Entrepreneurial
  Studies 213.821.0917 tom.omalia_at_marshall.usc.edu
  
• Lloyd Greif Center Marshall School of
  Business University of Southern
  California Bridge Hall One Los Angeles, CA
  90089-0801

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Vet Select Concept Statement Long Form
The Business Vet Select is a group purchasing
organization which serves veterinary members by
combining their purchases to increase buying
clout through existing veterinary distributors
manufactures to provide discounted pricing on vet
products supplies to its members. Customers -
V-S members will be independently owned,
small/solo veterinary clinics throughout the
U.S., but rolled out initially in So.
California. Benefits - The primary benefit to
V-S members is increased profitability which will
allow them to maintain ownership of their
practice by being more competitive with
mega-veterinary practices Channels - Members
will purchase products through V-S, but be
shipped and billed by contract distributors
manufacturers at negotiated/discounted prices.
V-S will not take possession of inventory.
Lifetime memberships will be solicited via direct
selling, direct mail, telemarketing, presence at
professional associations and meetings, symposia
exhibits and advertising in veterinary journals
to the approximately 15,000 solo and small vet
clinics in the U.S. Revenue model - There are no
membership fees. Contract distributors
manufacturers pays a 2 administrative fee based
on total purchases through V-S.
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Concept Statement Short Form
VetSelect is a group purchasing organization
that provides products services for small
solo veterinary practices in Southern
California. VS will increase the buying clout of
these vets to lower their costs and improve their
profitability to allow them to compete with
emerging mega-vet practices. Members will
purchase products through VS, which will be
shipped and billed at negotiated prices by
participating manufactures and distributors. VS
will receive a 2 administrative fees for all
products purchased. Test Delivered verbally in
lt30 seconds