2. Page 2
A. IDEATION. Generating ideas for new
businesses/products
B. EVALUATION. Filtering concepts to arrive at
the most promising
Concept Development Process
3. Page 3
Sources of Inspiration
Bookstores – Best Nonfiction sellers
Wired.com
Facebook / Twitter / YouTube (What’s trending?)
http://kylewestaway.com
4. Research
Look for problems lacking adequate solutions--
where the problem causes real pain.
1. What do you find annoying?
2. Talk to other consumers.
3. Talk to people in your industry.
What are their pain points?
Page 4
5. 4. Look for new niches
(customer segments not now adequately served)
Skate like Wayne Gretsky
5. Find a product or service that needs
improvement
6. Lower manufacturing cost of an existing product
Page 5
6. 7. Research emerging trends.
Make sure to catch the start of the wave so you
don’t get wiped out. Don’t be a “me, too.”
8. Sometimes a new product creates a demand for
a related product line, as cell phones led to
demand for protective cases.
Think like Bobby Fisher
Page 6
7. Page 7
Millennials want to live in cities.
What opportunities will this create for
resourceful entrepreneurs?
Trend
11. Page 11
Is the pain intense enough to cause
customers to break old habits and try the
new solution?
Rate each: Cool or Dumb?
What is the problem each of
the following products solve?
16. Page 16
Do what you know
Do what you are passionate about
Evaluate ideas as if you were the investor
Filtering and Validating Ideas
17. Page 17
Will it work? Is it technically feasible?
Alpha test
Beta test
Do you have the right to make it?
Search Patents.Google.com
Do you have the necessary capital or
access to it?
Reality Check
19. 1. Market Size
Annual Sales Potential
Characteristics of Attractive Markets:
• Large
• Greater than 30% growth capacity (not saturated)
• Targeted users adopt new products quickly
• Customers feel real pain
• Customers can be reached economically
• The time is right (not too early or too late)
0 1 2 3 4
$500,000 $10 million $20 million $50 million $1 billion
20. 2. Competitive Environment
Page 20
0 1 2 3 4
Multiple
national
competitors
Market
saturated
A major
national
competitor
One or two
small
competitors
First to
market
21. 3. Concept Differentiation
** Difficult to replicate =
Special technical skills required
Special user knowledge required
Proprietary technology (patents)
Many person-months to develop
Improves rapidly with customer feedback
Page 21
0 1 2 3 4
No
differentiation
One or more
new features
... and 25-
50% better
performance
... and lower
cost to
produce and
deliver
... and barrier
to entry or
difficult to
replicate**
22. 4. Sales and Profit Forecast Validity
Customer Validation
Page 22
0 1 2 3 4
My
mother
says she
may buy
one
+
Hundreds
of potential
customers
surveyed
…
+
Extensive
market
research
by you …
+
Professional
third-party
market
research
+
Paying
customers
23. 5. Capital Needed to Roll Out
Page 23
0 1 2 3 4
$1,000,000 $500,000 $250,000 $100,000 $50,000
24. 6. Management Team
Investors no longer bet on horses;
they bet on jockeys.
Page 24
0 1 2 3 4
First-time
entrepreneur
without
management
experience in
industry
You have
Management
experience in
industry
Multiple
founders (CEO,
CMO, CFO) all
with successful
experience in
industry
+
A prior
entrepreneur
on
Management
team
+
You earned
40% IRR for
investors on
your prior
venture
25. Summary Scorecard
Page 25
6 points = Back to square one
12 or more = You may have a great idea, but needs more work
18 or more = Investment worthy
24 = You’’ll receive multiple offers; be choosy.
29. Page 29
EIA Application
Revenue to date
NAICS (North American Industry Classification) Code
Expected Project Start Date
Expected Project Completion Date
Brief but clear explanation of what you will use this award for
How will this project propel your company to the next level?
What is the expected result of this project?
33. SBIR ACCELERATE CT
• Specialized guidance, which includes up to 20
hours of strategic one-on-one assistance for 15
companies actively preparing SBIR/STTR
applications
• Once accepted to the program, the cost to
participate is $250.
• Up to 15 companies will be selected annually
https://ctinnovations.com/item/sbir-accelerate-ct/
