A Framework for Assessing the Viability of an

Entrepreneurial Venture

Presented by Marinela Gombosev

Regina Herzlinger the first woman to be tenured and chaired at the Harvard Business School, is one of the country’s leading minds on healthcare (Money magazine called her “the godmother of consumer-driven healthcare”). She has predicted some of the most important medical trends of recent years, including the decline of managed care in the 1990s.

Marinela is currently the Executive Vice President, Operations and Marketing at Evoke Neuroscience. Marinela received her B.S. in Electrical Engineering from UC Irvine, where she was named Engineer of the Year, and her M.B.A from Pepperdine University.

Will Your Entrepreneurial Venture be Successful? A Framework for Assessing the Viability of a Venture

Objectives

⌂ Provide a new framework for analysis

↨ Challenge your current thought process

҉ Provide a tool for assessing ventures

First and Foremost: Use Common Sense

• Bold vision is great BUT…

• Beware of true believers (zealots)

• If you do encounter one,

go back to basics

Classify the Venture

•Technology (here is a new way)

•Consumer (we will help you)

• Integrator (we do it for less)

…think scale

Alignment Check: 6 Factors

• Structure

• Financing

• Consumers

• Accountability

• Technology

• Public Policy

Strategic Market Assessment

• First to market

• Fast follower (managerial excellence)

• Legal protection (patent)

Define Competitive Strategy

• Market Information

• Research findings

• Market testing

Is it financially viable?

• What % of market is needed to break even?

• Market share analysis

Is the venture sustainable?

• Revenues

• Management

• Risk ($)

• Cost

What is the valuation?

•Valuation analysis• Cash flows analysis• Terminal value• Rates of Return• Exit value analysis

Managerial Assessment?

Do you have the right people?Fit of skills vs. type of venture“First Timer’s” vs. “Experienced” managers

Societal Impact

Does it “do good”, as well as “do well”?

Technology Risk Assessment

Understanding the “black box”

Depth of research

Downside risks

Competition from other technologies

Financial considerations

Regulatory Issues

Likelihood of patent

Production considerations

References

• http://harvardx.harvard.edu/

• https://www.edx.org/

• http://www.123rf.com/photo_18070292_3d-rendered-illustration--human-spine.html

• http://www.forbes.com/sites/sap/2012/07/10/how-to-be-a-great-leader/

• www.Artisticglobe.com

• www.ceceninsaat.com