Into my office to talk about investment in entrepreneurial team, each column shows the bright and beautiful chart.
Will declare their total market (Total Market) amount, a few hundred billion; Second, they say they can direct services to enter the market (Total Available Market) how much $ 10 million, the number of billion yuan; then the third, and often conservative estimate of the first year for 2% to 3% of the market, the second year for about 5% of the market, to the third or fourth year to the market should be able to win 10%. Interestingly, the entrepreneurial team emphasized that it is "conservative" estimate, "believe" would be better in the future.
Many entrepreneurs Unexpectedly, the vested interests of leader in the market does not stand still, many new teams are also seeking the same plan, you must not use fantasy manufacturing market data.
A careful observation of the market
Enthusiasm business, no one acknowledge that the Products may not be sold at the time of assessment. This is why you need to find some customers, distributors, and users verify the reality challenges. I suggest that entrepreneurs want to enter the market to follow several principles to understand:
First, closely and your customers or marketing channels to discuss communication, which is always need work; Second, long-term collection of free reference materials available in the market, or the side of the market research; Third, the use of the information, but do not superstition information; proper use of market information, and to understand the market often people unsuccessful; Fourth, the exploration and interpretation of the market, to seize the NABC four principles of (Needs the demand, Approach method, Benefits interests, Competition competition), is the the four letters entrepreneurship order proposed by the Stanford Research Center (SRI, Stanford Research Institute).
Afraid of making mistakes, I'm afraid not
Not long ago I was invited to participate in the Era Foundation "Youth Entrepreneurship Forum, YEF". Anniversary. Afternoon program by the young students with entrepreneurial youth organizations, chaired crafting and performances, I was their passionate imagination to create, and the release of high-energy touched. I watch their performances to years of entrepreneurial and venture capital experience, have already felt a great deal of encouragement, not to mention the others?
Young people "are not afraid of making mistakes, I'm afraid not," the spirit of so many of us lost themselves in the cause of the burden of shame. The YEF students performed through a short experience of their entrepreneurial competition, the past MIT gift them a good word is the same: If you are brave to do it, maybe you will fail. But if you do not brave to do it, you are doomed to failure! (If you are bold, you may fail. If you are NOT bold, you WILL fail.)
Among the venture capital industry for many years, I have seen too many examples of "lack of courage". Was graying at the temples, we recall the lost opportunity of a lifetime, said: "At first, I was if I how ..." or to see the success of others, to lie to myself: "so simple ideas, then I can do, and must will do better. "... I most frequently cited example is a very good friend, ten years ago, said he wanted to go back to school to read a new degree; say every year, but did not do every year. I told him bet: Ten years later, you still tell I have not yet done so to the same ideal.
See through the market on three major issues
Many venture capitalists like the manufacture of their "profound" sense of mystery, In fact, as long as the simplest, most humane "P" theory, you can learn about the feasibility of the business plan. I think that any product or service, as long as it will eventually be able to reduce human pain (Reduce the pain), increase the fun (Increase the pleasure), is a good opportunity. Other details may be three of the most basic questions, one glance wear: what you really want to sell? Do you really know who your buyer, your stuff is going to be sold? Why do these people not to buy you can not?
What are you really sell?
Many excellent technical personnel to create their own imaginary product is very persistent. This should be a good thing, but many of the problems often starts. Because they often see their own independent and effort to develop a perfect answer, before we start looking for the problem. This is our investment mean when they say: for the answer to find the problem, rather than for the problem to find the answers. So I often meet cute technical personnel, holding forth to tell great concept, but said a long time, as if the problem can be solved, that is, can not tell whether to sell.
Do you really know your stuff is going to be sold?
"A clear understanding of the original problem, the next will be even more" sold "confusion. Many enthusiastic entrepreneurs, who make inventions too confident, always feel that the customer will immediately flock. History has proved that even in 1000 no blockbuster product or service, a hundred. Most of the products must go through the clear market survey and clear positioning, to be able to find Salon customers.
Why these objects have to buy it from you not?
This problem is very common, but be sure to ask. The entrepreneur is best to directly ask the customer: Why does he have to buy you can not? At any faithful ourselves: world so much, why customers have to buy it from you is not?
If a product positioning is unclear if a plan can not be summarized competitive advantage, then all the good fantasy proved unfounded. If you do not believe, you can not sell something to see flooded; Conversely, if you clearly know their products or services, which were non-use is not, then your chance of winning is high.