FFI Intl Expansion

Learning to shoot puppies

Lets be honest .Most of you have products / ideas only a mother could love !

The biggest 3 mistakes of EntrepreneursInvesting in the wrong business

Staying too long in the wrong business.. (after you should know it is time to change)

People dont buy your product or service cause they understand why they should

I will see it when I believe itvs.I will believe it when I see it

Too much research is the first type

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An example: global warming

Hot summersWarm winters

Evidence of global warming

Cold summersCold winters

Evidence of global warming

Clearly there is evidence of global warming ?!

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6Solutions IssuesWe often do research to check our brilliant ideasSUGGING (Selling under the guise of market research)

SolutionsObjective criteria in place before the research startsIs 35% planned purchase good or badClearly define your biases before you startFocus on insight (vs. confirmation)Do regular reality checks

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Youre not alone !

More than nine out of ten consumable products launched in the last ten years offered absolutely nothing new to the consumer.

More than eight out of ten new products fail. You dont need to be a statistician to realize theres a correlation between the two numbers.

-- Robert McMath

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Arguing the other direction

Why is this a bad idea

If it fails, why will it fail

And then deciding what can be done about it

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A checklist for ideasIs there a benefit (real or perceived) People willing to pay (enough) Cost of cut-through acceptable People will see the benefit buy again / recommend to others Will someone hate it

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Pets.com

Pet supplies via the internet

Save big, save timeStay at home

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13Kosmo.com

Instant delivery of products purchased via the internet in big cities

Order a wide variety of products, from movies to snack food, and get them delivered to your door forfree within an hour.

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14Despair.com

We hate all the senseless, wasted time on employee motivation and un-founded optimism

We imagine you do to, buy our products and show your true colors

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Continuous effort is the key to unlocking your potentialWinston Churchill

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17Etoys.com

The new place to buy toys. Find you want on the internet

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19Petrock.com

Pets take a lot of time and energy. Your kids can have almost as much fun with a pet rock.

We even include a care guide

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22Webvan.com

Buying groceries should be easier. With webvan you can get all your groceries, so you have time for other things

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Now the most important questionWhy would this business fail

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Costs per stage

Ideas, screeningConcept, analysisProd.develTestmktgcommercialization

The time toMake mistakes !

BudgetTime

Can you ask the experts ???

I think theres a world market for about five computers. (President of IBM, 1943)

TV wont be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night. (President of 20th Century Fox, 1946)

28Should consumers be followed or led ?

Mobile phoneComputersInternet

Not all new products are revolutions !

There are many holes in the markets, but fewer markets in the holes ..

A checklist Talk to 20 people (that are not your friends)If no one hates the idea, be scaredAsk people if this fails why would it fail (youll get a lot more information than asking what they think of the idea !)Keep it simple check do people really understand

Remember better is never enough

Fat Bastard is priced higher, tastes less good but outsellsBilton 10 to 1

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A reading listThe wisdom of crowds how you can use non-experts to get answers to tough questionsThe start-ups owners manual..Chapter 3 customer discoveryWilliam Harmon- An incomplete guide to the future how to see what paradigms are affecting the way the you see the future

Sheet2Group NumberPets.comKosmoDespair.comEtoys.comPetrockFloozWebvanIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersWill someone hate it

Kill Puppy (0 = kill, 1 = love)Why would it fail Pets.comKosmoDespair.comEtoys.comPetrock.comFloozWebvan

Sheet1Group NumberIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersKill Puppy1Pets.com2Kosmo3Despair.com4Etoys.com5Petrock.com6Flooz7Webvan

Sheet2Group NumberPets.comKosmoDespair.comEtoys.comPetrockFloozWebvanIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersWill someone hate it

Kill Puppy (0 = kill, 1 = love)Why would it fail Pets.comKosmoDespair.comEtoys.comPetrock.comFloozWebvan

Sheet1Group NumberIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersKill Puppy1Pets.com2Kosmo3Despair.com4Etoys.com5Petrock.com6Flooz7Webvan