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1.

Company stage:

Inception

- inventor has a technological idea with a good market potential, but has no or limited business expertise and resources to commercialize it

Organization:

Virtual

Management:  

Entrepreneurial

Technology:

Idea

Funding Stage:

Pre-seed

pp.

Problem

(Why worry)

Solution

(What to do)

Action

(How to do?)

1.1

Growth Risk:

Every good business begins with a great idea, but not every great idea makes a good business

• Clarify your vision

• Make a reality check

• Use professional advisory services

1.2

Technology Risk:

Your technology idea must be realistic, unique, and properly protected

• Check uniqueness of your technology idea

• Check how your technology could be best protected

• Identify technology for commercialization

• Search patent data banks

• Select the form for protection of your intellectual property rights and take the necessary steps to either protect it legally or to keep it as a trade secret

• Watch permanently technological developments by your competitors

1.3

Marketability Risk:

No detailed market study has been undertaken to evaluate the market potential of the product to be produced

• Identify your market niche

• Develop a business concept targeting this market niche

• Conduct preliminary market research

• Shortlist possible products

• Make a Strength - Weaknesses - Opportunities - Threats (SWOT) analysis

• Plan for considerable marketing and advertising expenses up front, i.e. prior to realization of sales

1.4

Financial Risk:

High-risk pre-seed capital is needed to design/develop of prototype of technological applications - products or services

• Have a good understanding of the venture financing process (see slide presentation)

• Identify possible sources of pre-seed capital: founders, friends, family, business angels (see slide presentation), development funds

• Study investment opportunity selection criteria of different types of investors (see slide presentation)

• Introduce your project to prospective investors

• Study the start-up capital formation process

• Try to personally finance and bootstrap your firm as long as possible, until the need for external growth finance becomes evident and unavoidable.

•  Identify sources of financing for early-stage technology development

• Study their project evaluation criteria and procedures

•  Suggest how investors could realize financial returns on their investment

• Prepare a business plan

  •  Market potential & competition

  •  Business concept

  •  Marketing plan

  •  Financial plan

• Study start-up business valuation principles

• Prepare project presentation for investors

• Present your project to investors

1.5

Team & Management Risk:

Inventor lacks business skills to develop and manage the business

• Get prepared to share company ownership and management with professionals (see slide presentation)

• Study various options of company ownership and management

• Select the one that suits you best and make initial preparations