Is the problem real?
Objectives
• Introduce opportunity identification as an
approach to entrepreneurial opportunity
analysis and new venture creation
The Opportunity Analysis Canvas
TM
Industry
Condition
Entrepreneurial
Motivation
Competition
Opportunity
Identification
Problem
Solution
Advantage
Team
Industry
Status
Entrepreneurial
Mindset
Value
Innovation
Entrepreneurial
Behavior
Macroeconomic
Change
Defining the problem
1. Who is your customer?
• This is the first step to defining your
market and understanding the problem
or desire
• Analysis of industries, markets, and
value innovations narrows the focus to
real customers
Defining the problem (con’t)
2. What are their needs and wants?
• Focus on customer value first.
• Why do they need your product?
• What benefits will they gain?
– Can they make money or save money with
your product?
– Can they save time with your product?
– Other benefits?
Are there enough customers?
• If you have a real customer, and
• If you can deliver real value,
• Then ask
– How many people experience these problems
now? In the future?
– How many buyers are there?
– Are there enough people who care about this
problem for you to be financially successful by
solving the problem?
Summary
• Validate your ideas about the problem and
candidate solutions
– Talk with prospective customers very early in the
product development process
• Engage with customers pre-prototype
– Get insights on what features and values matter
– Know what they are willing to pay for the product
that you envision (before your invest in it)
• Know the market size and its potential