Introducing StartMyBusiness123 2011 10

Introducing

© Prof. János Vecsenyi 2011.

VIEW

© Prof. János Vecsenyi 2011.

A number of wannapreneurs would like to get seed money from our venture capital firm, but they do not know exactly for what and

why. I would like to offer them some help to think their business idea through and come to us with

a well defined and tested concept.

I am already running my small business. It would be great to know why it is not successful enough. I want to find the key

to success.

Being a consultant, I am regularly approached by a number of new

entrepreneurs needing my help to get their basic questions answered. I

would appreciate a professional toolkit to make my job easier.

I have a seemingly great business idea, but I am not sure about it. I would like to check it out before I launch my new venture.

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© Prof. János Vecsenyi 2011.

I am János Vecsenyi, professor of Entrepreneurship at Small Business Development Center of Corvinus University of Budapest.

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• Founded my first consulting firm in 1995, worked for GE for 15 years, consulted start-ups, small and big companies

• Harvard alumni from the EFER Entrepreneurship teaching program

• Lectured at Tulsa University (USA), INSEAD (France), University of Economics and Technical University (Budapest)

• Recently published book‘Starting and Managing New Ventures’

• Launched VJV Consulting to develop and sell StartMyBusiness123

A team of entrepreneurs, venture capitalists, other professionals and I spent much time to develop the StartMyBusiness123 program to facilitate the successful start of new ventures for future entrepreneurs.

Starting a new venture

• Exciting adventure• Conscious preparation

• Making a dream come true• Getting to know the business world

• A journey to independence• Business, profession, management

© Prof. János Vecsenyi 2011. 4

Fit & Sexy

Mark

et need

Prod

uct /

se

rviceCustomer Seller

© Prof. János Vecsenyi 2011. 5

Starting a new venture

Business model

INCOME?

Buyer Advertizer

ProviderTenant

© Prof. János Vecsenyi 2011. 6

Starting a new venture

Operation and management

© Prof. János Vecsenyi 2011. 7© Prof. János Vecsenyi 2011. 7

Starting a new venture

You

Your team Your network

© Prof. János Vecsenyi 2011. 8

Starting a new venture

SelfconfidentWell thoughtSupportedExecution

Why do you need a business plan?

CONCISE

BUSINESS PLAN

VIABLE BUSINESS

CONCEPT

Idea

WHY?

For me, for Family, Friends, Funds, angel investors

For me, for venture fund investors

FOR WHOM? HOW? WHAT?

Concise analysis and plan with a BP template

Convincing thorougharguments

SelfconfidentPlannedSupportedExecutionConvincing,

credible document

9© Prof. Vecsenyi János 2011.

Systematically thinking through with

1)Define 2)Test 3)Act

Define what business you want to start or run.

Test viability and

develop

your business.

3 steps

Act to solve strategic issues and decide on starting.

© Prof. János Vecsenyi 2011. 10

Starting a new venture

Who will be your customers, what are their needs and why?

What product/service do you want to sell at what price?

Where will your income come from directly or indirectly?

How will your business operate? How much money will your

business make? How much money do you need to

launch your business? Who will be your partners?

BUSINESS CONCEPT

Foundation for start-up

Based on your great idea you

need to define a business concept

to succeed.

The business concept will define what kind of you

want to start.

1) Define

11© Prof. János Vecsenyi 2011.

The need

The value proposition

The business model

The operational model

The financials and investment needs

The entrepreneur and the team

© Prof. János Vecsenyi 2011. 12

1) Define

Test against five criteria:Marketability shows whether your product/service can generate real paying customers.Competitiveness tells you how strong your position is among your competitors based on your special offer.Feasibility will focus on the operation of your business; whether the business can deliver on its promise.Profitability tests whether the business can really generate profit.Engagement reflects on your willingness and capabilities, which are prerequisites for a successful start-up.

2) Test

© Prof. János Vecsenyi 2011. 13

Do you want to know how viable your business is?

Developing the business based on viability testing

2) Test

© Prof. János Vecsenyi 2011. 14

3) Act

Identifying strategic issues and solutions

Creating action plan to solve strategic issues

Decision on starting and execution

© Prof. János Vecsenyi 2011. 15

© Prof. János Vecsenyi 2011. 16

What When Who

Strategic issues and action plan for starting

Viable Business Concept

Start-up Action

Plan

Elevator Pitch

OUTPUT

DECISION starting, postponing or

stopping the venture

3) Act

The framework

SUCCESS FACTORSSUCCESS FACTORS

RISK FACTORS

RISK FACTORS

STRENGTHENING STRENGTHS

STRENGTHENING STRENGTHS

MANAGING RISKS

MANAGING RISKS

BUSINESS CONCEPT

What When Who

Strategic issues and action plan for starting

DECISION starting, postponing or

stopping the venture

© Prof. János Vecsenyi 2011. 17

Built-in support

Calculation engine

Examples, best practices

Pro tips for risk management

.

© Prof. János Vecsenyi 2011. 18

What else can we tell you about StartMyBusiness123?

If you’d like to learn more, drop us an e-mail: info@startmybusiness123.com

Many of the questions we’ve received are answered on our

FAQ page.

© Prof. János Vecsenyi 2011. 19

© Prof. Vecsenyi János 2011. 20

Personal success

Can be happy

Social success

Can contribute to the sustainable development

Economic success

Can make money out of it

Sales success

Can sell it

Technical success

Can make it

Stair

case

to th

e entre

preneu

rial s

ucces

s

Have a smart and successful journey