Several friends met on Thursday to listen to presentations from undergraduate business majors in the NCSU Jenkins School of Management, MIE 410: Business Opportunity Analysis class, aka “Pitching.”
It’s fun.
Today, on Quora, I found this question: What is your advice for two 21 year old entrepreneurs?
This is easy. My answer:
In short? You need a 42 year-old advisor.
We heard 15 business pitches, delivered by graduates of NCSU’s undergraduate business program. Some great ideas; some decent skill sets; some of them will succeed.
But not all.
Many of the challenges these businesses overlooked are simply common-sense knowledge that one accumulates over time. We had feedback. Take a bullet point. Take two; they’re free:
- You cannot quadruple revenue in a food service business without increasing the cost of goods sold.
- Selling liquor changes everything.
- The FDA WILL have an opinion if you play in their space.
- You cannot run a warehouse in a residential neighborhood in the US.
- Nobody has Wal-Mart as their first customer.
- There WILL be fraud. Your job is to figure out where, not to believe it cannot happen to you.
- Employees and staffing are a bigger problem than you have allowed for.
- 20% markup is not profit.
- Someone is already doing that; this is not a bad thing but do not believe you are the first or only.
- Someone else is already doing that in a different market; this is a good thing. It proves the idea can fly. Now, go see how they made it work.
- Someone else sells this product; that is good. Figure out who their customers are. It’s possible to KNOW who buys that product; you don’t have to think about it.
- LOTS of universities are working on this problem. That you believe no-one has thought of your idea shows you didn’t do your homework.
- 50 year old women can do make-up in 90 seconds, not 17 minutes. Change your target market.
If you get an opportunity to sit in on a practice pitch fest, take it. You may find out you know a bit more useful stuff than you thought.
Follow Us!