Slide that showcases fundamentals for creating a well-built venture. Detailed explanations for questions raised within the slides can be found at http://www.venturecapital.org Entrepreneurs>New Venture Template. Email Questions to info@venturecapital.org

1. The Six Fundamentals of a
Well-Built Venture
Presented by: The Wayne Brown Institute

2. The Six Fundamentals
• Innovation
• Value
• Persistence
• Scarcity
• Appropriability
• Flexibility

3. Innovation
“Entrepreneurship is an act of innovation that involves endowing existing
resources with new wealth-producing capacity.” Drucker (1985)
Innovating acts endow old resources with new value “new combinations”
which achieve wealth producing capacity when product and market are
matched.
Two Sub-questions are raised:
• Is it a new combination?
• Is there a product-market match?

4. Value
• Is there a net buyer benefit?
• Are there margins?
• Is volume sufficient?

5. Persistence
• Is it repetitive?
• Is there a long-term need?
• Are resources sufficient?

6. Scarcity
• Is it non-imitable?
• Is it non-substitutable

7. Appropriability
• Is there no slack?
• Is there no holdup?

8. Flexibility
• Is uncertainty minimized?
• Is ambiguity reduced?
• What is your level of Core Competence?

9. Got Questions?
You should.
Get detailed explanations of the Six Fundamentals of a
Well-Built Venture.
http://www.venturecapital.org
Entrepreneurs>New Venture Template
Please email other questions to
info@venturecapital.org