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42

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

Since that time, iCracked has continued to expand, and the company now has
over 500 iTechs spread over most of the United States and eight foreign countries.
lnitially, a customer would be put in touch with an iTech technician, and they agree
on a place to meet. Starting in late 2013, the service improved, and the iTechs now
travel directly to the customer. They repair broken screens, LCDs, bad'batteries and
all other small parts problems, as well as water damage for Apple iPhone, iPad, and
iPod models. As long as the logic board is intact, which it usually is, the repair can
be made. The repairs typically take between 10 and 30 minutes and cost between
g70 and $t ZO. They also purchase used iPhone, iPad, and iPod devices. The iTechs
aren't full-time employees of iCracked. The firm makes money by selling parts to the
iTechs and connecting them to customers. iCracked is extremely diligent about who
becomes an iTech. Every applicant is subject to a five-step interview process and a
background check. Thousands apply, but only 2 percent of applicants are accepted.
The firm adds 50-70 new iTechs each month. Over time, iCracked technicians have
seen all manner of iPhone catastrophes, from pet pigs stomping on them, to iPhones
being run over by trucks, to phones falling out of the hands of skydivers. Often badly
damaged, the phones can usually be repaired and restored. Offering insurance on
iPhones is a new product line iCracked is considering. The insurance is expected
to cost around $6 a month, with a $20 deductible. For people in areas where iTech

technicians aren't yet available, iCracked offers the option of sending the broken
phone to the company's headquarters, where it will be fixed and sent back the same
day. iCracked also continues to sell its do-it-yourself iPhone Screen Repair Kit.
iCracked believes it is just getting started. The company had sales of around
$2 million in 201 2 and $10 million in 2013. lt sees additional opportunities in its core
business and in other areas. ln regard to its core business, it's estimated that within
the next five years, there will be five billion smartphones in the world. About 30 percent
of smartphones are damaged and at some point need repairs. iCracked has already
positioned itself as the world's largest and most efficient iPhone repair and buyback
service. lt plans to soon extend its service to Android-equipped phones. As a result,
iCracked is positioned to dramatically increase its revenue in smartphone repairs, buybacks, and additional services. lts smartphone insurance service is also expected to
significantly add to the firm's sales revenue.
ln regard to other areas, in early 2012, Forsythe and Martin were admitted to Y
Combinator, based on the strength of their company's early traction. Y Combinator is a
business accelerator that provides seed money, mentoring and connections to promising technology startups. The three-month Y Combinator experience challenged Forsythe

and Martin to see iCracked in a new light and as a much bigger potential oppoftunity.
Forsythe and Martin believe their network of iTech technicians is the company's most
valuable asset. They foresee the technicians eventually providing repairs, installations,
and additional service across a variety of industries for a wide range of clientele.

I n this chapter, we discuss the importance of understanding the difference

I befween ideas and opportunities. While ideas are interesting and can intrigue
I us as possibilities, not every idea is in flact the source of an opportunity for an

entrepreneur to pursue. In addition to describing the differences between ideas

and opportunities, this chapter also discusses approaches entrepreneurs use
to spot opportunities, as well as factors or conditions in the external environment that may result in opportunities. As you will see, too, certain characteristics seem to be associated with individuals who are adept at spotting viable
business opportunities.

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44

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

advantages over already established competitors or targeted a niche market in

an exemplary manner. Bing, Microsoft's search engine, is gaining ground \Mith
approximately 18 percent market share (compared to 67 percent for Google),
but only after Microsoft has exerted an enormous amount of effort in head-tohead competition with Google.2
It is important to understand that there is a difference between an opportunity and an idea. An idea is a thought, an impression, or a notion. An
idea may or may not meet the criteria of an opportunity. This is a critical point
because many entrepreneurial ventures fail not because the entrepreneurs
that launched them didn't work hard, but rather because there was no feal
opportunity to begin vrith. Before getting excited about a business idea, it is
crucial to understand whether the idea fills a need and meets the criteria for
an opportunity.

Three Ways to ldentify OpPortunities

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Describe the three

appmaches

general

Th.ere are three approaches entrepreneurs use to ldenti$/ an opportunity thelr

new venture can choose to pursue (see Flgure 2.2), Once an entrepreneur un-

s/he will be much more likely to

look for opportuniues and ideas that fit each proffle. We dlscuss the three approaches ln the next tlrree sections.

entrepreneurs derstands the irnportance of each approach,

useto identify opportunities.

Observing Trends
The first approach to tdentirying opportunities ls to observe trends and study
how they create opportunifles for entrepreneurs to pursue. The most important trends to follow are econornic trends, social trends, technological advances, and poliucal actlon and regulatory changes. As an entrepreneur or
potential entrepreneur, ifs important to remain aware of changes ln these
areas. This sentiment is aflirmed by Michael Yang, the founder of Become.com,
a comparison shopping site, who believes that keen observation sldlls and a
lrillingness to stay on top of changing environmental trends are key attrlbutes
of successful entrepreneurs:
One of t]:e most tnportant attrlbutes of a good entrepreneur is ha\,'tng a keen
obseryation abitty. Baslcally seeing what's needed in people's everyday liyes and
comtng up wlth innovauve new ldeas and sen'lces that meet those needs .,. I aIways believe the entrepreneurs that antlcipate trends and majntain observaflons
of what's needed ... to solye those needs vrtll have a higher chance of succeedlng

ln the marketplace.3
When looking at envlronmental trends to discern new business ideas, there
are two caveats to keep in rfind. Flrst, ifs important to distinguish between
trends and fads. New buslnesses typically do not have the resources to ramp up
fast enough to take advantag;e of a fad. Second, even though we discuss each
trend individually, ttrey are interconnected and should be considered simultaneously when brainstormrng new business ldeas. For example, one reason that
smartphones are so popular ls because they benefit from several trends converging at the same tlme, including an lncreasingly moblle population (socLal
trend), the contlnual mlniaturization of electronics (technological trend), and
ffiffiffiffiffiffi ffi-ffi
Three Ways to ldentify
an Opportunity

,ObseruingTrends,;

SolvingaProblem

Finding Gaps in the

Marketplace

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46

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

the economy is strong, people have more money to spend and are willing to buy
discretionary producls ind services that enhance their lives. In contrast, when
the economy is weak, not only do people have less money to spend, they are
typically ,rror. reluctant to spend the money they have, fearing the economy
m.y become even worse, and that in turn, they might lose their jobs because
of a weakening economy. Paradoxically, a weak economy provides business
opportunities for start-ups that help consumers and businesses save money.
Oxlmptes include GasBuddy and GasPriceWatch.com, two companies started
to help consumers save money on gasoline. A similar example is WaterSmart
'utiliSoftware , a 2OOg start-up. WaterSmart Software sells software to water
ties that makes it easier for their customers to save water and money.
When studying how economic forces affect business opportunities, it is
important to evaluate who has money to spend and what they spend it on'
Foi example, an increase in the number of women in the workforce and their
related increase in disposable income is largely responsible for the number
of online retailers and toutique clothing stores targeting professional women
that have opened the past several yea.rs. Similarly, the increased buying power
of minority populations has resulted in an upswing of ethnic restaurants and
ethnic supermarkets in the United States. Baby boomers are another potential
group to examine. These individuals, who were born between 1946 and 1964,
ire retiring in large numbers and will be retiring in even larger numbers over
the next five years or so. The expectation is that these people will redirect a
sizeable portion of their assets to products and services that facilitate their
retirement. This trend will invariably spawn new businesses in many areas,
largely because baby boomers have greater disposable income relative to previorJ gl.r.rations. Foi example, baby boomers tend to take pride in their homes
and lawns. Recent data indicates that baby boomers who own homes are 2l
percent more likely t!* all American adults to have spent $1O,OOO or more on
ho*. improve-.rrt".u Other areas that baby boomers spend heavily on include
health care, travel, and consumer packaged goods. The high cost of energy,
coupled with a desire to be socially responsible, has also spawned a growing
number of startups that are developing products and services that help business and con=rrrr.r" become more energ/ efficient. An example is Nest Labs
(www.nest.com), a 2O1O startup. Nest Labs-which was acquired by Google in
2Ol4_,rna.kes the world's first learning thermostat. The thermostat, which can
be used in homes or businesses, learns from your temperature adjustments
and programs itself to optimize abuilding's comfort and energ/ efficiency-o
An understanding of economic trends also helps identi$r areas to avoid.
For example, a decision to launch a company that sells products or services to
public schools was not a wise one during the recent economic downturn. In the
United States-and other countries, as well-public schools have been hit hard
by budget cuts from governmental funding agencies. The cuts have significantly
r.dr".d the abiliff of schools to purchase new products and senrices.

An understanding of the impact of social forces on trends

new product, service, and business ideas is a fundamental
affect
they
and how
recognition puzzle. Often, the reason that a product or
opportunity
piece of the
do with satis$ring a social need than the more transto
*ore
ha"
service exists
parent need the product fills. The proliferation of fast-food restaurants' for example, isn't primarily because of people's love of fast food, but rather because
of ihe fact that people are busy and often don't have time to cook their owrl
meals. Simitarly, social networking sites like Facebook, Twitter, and Instagram
aren't popular b.cu..rs. they can be used to post information and photos on a
website. th.y'r. popular because they allow people to connect and communicate with each other, which is a natural human tendency.
Changes in social trends alter how people and businesses behave and how
they set iheir priorities. These changes affect how products and services are
Sws*m& ffimryees

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I

48

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

be shipped in 2014.8 There are a growing number of mobile apps and activity
trackers that beam the data they collect to their health ca.re providers so they
can keep tabs on their activities and inform treatments. Insurance companies
and corporations are increasingly partnering with technolo$/ companies like
RedBrick Health and Audax Health, which establish programs to help encourage healthy lifestyles.
Technological advances also provide opportunities to help people perform
everyday tasks in better or more convenient ways. For example, OpenTable.
com is a website that allows users to make restaurant reservations online and
now covers most of the United States. If you're planning a trip to Boston, for
example, you can access OpenTable.com, select the area of the city you'll be
visiting, and view descriptions, reviews, customer ratings, and in most cases
the menus of the restaurants in the area. You can then make a reservation at
the restaurant and print a map and the directions to it. The basic tasks that
OpenTable.com helps people perform have always been done: looking for a
restaurant, comparing prices and menus, soliciting advice from people who are
familiar with competing restaurants, and getting directions. What OpenTable.
com does is hetp people perform these tasks in a more convenient and expedient manner.
Another aspect of technological advances is that once a technolory is created, products often emerge to advance it. For example, the creation of the
Apple iPod, iPhone, iPad, and similar devices has in turned spawned entire
industries that produce compatible devices. For example, Rokit is a high-end
mobile accessories company that makes smartphone cases, headphones,
portable USB device chargers and Bluetooth speakers. Rokit wouldn't exist
if it weren't for the advent of the smartphone industry. Similarly, there are
a growing number of start-ups working on smartphone apps. An example is
Ubersense, the subject of the You Be the VC 5.2 feature. Ubersense has made
a smartphone and tablet app that allows athletes, coaches, and parents to
shoot video of an athlete's move or competition, and then analyze the video in
a variety of ways.
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Political and regulatory

changes also provide the basis for business ideas. For example, new laws often
spur start-ups that are launched to take advantage of their specifications. This
is currently happening as a result of the passage of the Affordable Care Act
(Obamacare). The combination of new regulations, incentitives for doctors and
hospitals to shift to electronic records, and the release of mountains of data held
by the Department of Health and Human Senrices (on topics such as hospital
quality and nursing home patient satisfaction), is motivating entrepreneurs to
launch electronic medical records start-ups, apps to help patients monitor their
medications, and similar companies.g
On some occassions, entire industries hinge on whether certain government regulations evolve in a manner that is favorable to the industry. For example, there are several start-ups poised to commercialize the use of drones,
or Aerial UAV's. Drones can be used for a number of domestic purposes, such
as helping farmers determine the optimal level of fertilizer to place on crops
or helping filmmakers shoot overhead scenes. Amazon.com created quite a bit
of buzz in late 2OL3 when it suggested it would like to use drones for package
delivery. As of spring 2014, the FAA permitted drones to be used for personal
use, and restricted their use to below 40O feet, within eyesight of the controller and away from airports and populated areas. Drone start-ups, Iike 3D
Robotics , are waiting for the EAA to develop more liberal rules and standards
that will allow drones to be used for expanded purposes.lo
Political change also engenders new business and product opportunities. For example, global political instability and the threat of terrorism have

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50

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

How to Learn About Emerging Trends Through the Effective

Use of Social Media
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ften, as a result of a changing environmental trend,

. ;individuals have the seeds of a business idea, but
need to know more about the trend before their
"..,.",'
idea can fully take shape. For example, one environmental trend, the continual migration of people from small
towns and rural areas to cities, has resulted in cities
becoming more congested. To help relieve congestion,
many large cities are implementing bike-sharing programs. The programs typically allow a person to pick
up a bike at Point A and then drop it off at Point B. The
idea is that if someone has a short commute to work, or
plans to make a short trip, s/he might opt to ride a bike
rather than drive their car. The fewer cars there are on
the street, the less congestion there will be.
Say you had the idea to start a for-profit company to
manage bike-sharing programs for mid-sized cities. This
potentially could be a viable idea, given that to date, most
of the programs are in large cities. A mid-sized city would
be a city like Tulsa, OK, or Little Rock, AR. You have the
idea, but you now need to learn as much as you can about
the migration of people from smalltowns and rural areas to
cities, as well as how bike-sharing programs work. You're
just in the idea stage here, collecting information and
Iooking for insights. Many people try to use social media
to learn about emerging trends, but go about it in a haphazard manner. Here are some suggestions for effectively
using social media to study environmental trends and
',,'''

business ideas associated with those trends.

Facebook Groups. Look for Facebook Groups

that pertain to the topics in which you have an
interest. You can find Facebook groups by simply
accessing Facebook's main page and typing the
appropriate keywords in the search bar. Once
you start typing for a term like "bike sharing,"
you'll see a list of suggestions pop up beneath
the search bar. You can then look at the groups
in which you have an interest. Simply "like" the
groups that you want to follow, and you'll start
getting notifications of new posts. Most groups
will ask you to join (by clicking the join button) if
you want to post information or make comments
on others' posts.
lr,+ Linkedln Groups. Linkedln also has groups. To
find a group, simply go to Linkedln's homepage,

ffE

and to the left of the search bar, access the

dropdown menu and select Groups. You can
then search to see if groups exist that match
your topic. When writing this feature, there
were several Linkedln groups on bike-sharing.
There were also groups that dealt with urban
congestion. By typing "urban congestion" into
the search bar, Linkedln suggested the group
"Creating Healthy, Liveable Cities," among
others. Similar to Facebook, most Linkedln
groups will want you to join to participate
in the discussions.
ffi Twitter. You can search for topics on TWitter,
along with people, businesses, and organizations. You simply place the hashtag (#) in front
of the topic. For example, for the business idea
proposed above, you might want to search for
the following topics: #bikesharing, #urbancongestion, #urbanqualityoflife, #healthycities, etc.
Your searches will result in the most current
tweets of people talking about those topics'
This is a good way to both consume content on
a topic in which you are interested and to identify people or organizations that you might want
to follow on a consistent basis. TWitter does not
support groups. Some third-party Twitter tools,
like Tweetdeck, do allow you to form or join
groups of Twitter followers that are interested
in a specific topic.
ffi Blogs. To check to see if there is a blog on a topic
of interest, seach Google Blogs at www.google.
com/blogsearch. A quick search identified a blog
named The Bike-Sharing Blog at www.bike-sharing.blogspot.com. lt also identified a website on
Healthy Cities at www.healthycities.org.
ffi Tumblr. Tumblr is a popular microblogging platform and social networking website owned by
Yahoo. Simply go to Tumblr (www.tumblr.com)
and type your query into the search bar. You'll
see what Tumblr has to offer. You can try many
different combinations of terms, such as "bike
sharing," "healthy cities," "migrations to cities,"
etc. You can then periodically view or follow the
Tumblr microblogs that interest you the most.

Solving a Problem
The second approach to identitring opportunities is to recognize problems
and find ways to solve them. Problems can be recognized by observing the
challenges that peopte encounter in their daily lives and through more simple
means, such as intuition, serendipity, or chance. There are many problems

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52

pART

2 I

oeveloprNG SUcoESSFUL

BUSTNESS TDEAS

speciflcally for kids and tweens. The phone weighs only 2 ounces, and is designed to flt ln a ldd's hand. The phone includes a full-color screen, bullt-ln
games, built-in parental controls that allow parents to restrict incoming and
outgoing calls as well as lirnit or restrict texting, and special speed dials for
mom and dad.
If you're having difficulty solvi::g a particular problem, one technique
that is useful ls to flnd an instance where a slmllar problem was solved and
then apply that solution to your problem. For example, Yogitoes, a company
that makes nonslip rugs for yoga enthusiasts, was started in this manner. Several yoga posluons require participants to strike poses whete they
balance their weigfrt on thelr feet at an ang1e. In this position, lt ls easy to
sllp when using a reglular yoga mat. The company's founder, Susan Nicols,
looked for a yoga mat that would prevent her from slipping, but found that
no one knew how to make one. So she started looktng for an example of a
product that was designed speciflcally to prevent it from slipping on a hard
floor, to study how lt functioned. Eventually, she came across a dog bowl
with rubber nubs on the bottom to prevent it from sliding when a large dog
ate or drank from lt. Using the dog bowl as a model, Nichols found a manufaeturer who helped her develop a rug with sma-Il PVC nubs that prevents
yoga partlcipants from slipping when they perform yoga moves. Nichols
started Yogitoes to sell the rugs, patented her solution, and has now been ln
business for more than I0 years.13
Some business ideas are $eaned by recognizing problems that are associated with emerglng trends. For example, SafetyWeb has created a Web-based
service that helps parents protect their children's onllne reputation, privacy,
and safety. The social trend tori/ard more online activity by children resulted
in the need for thls seMce. Similarly, the proliferaflon of smartphones enables people to stay better connected, but results in problems when people
aren't able to access electricity to recharge thelr phones for a period of tlme, A
number of companies have solved this problem in innovauve ways. Examples
include Biolite, which is a stove for c.rmpers that uses wood to create energ/
to recharge smartphones, and BikeCharge, whlch is a set of devices that are
placed near the rear wheels of your bike and on your handlebars ttrat charges
your smartphone while you rlde.
Additional examples of people who launched buslnesses to solve problems
are included i:: Table 2.2.

?flBLE

2-2

Businesses Created to Solne a Problem

Name of Business

Entrepreneur(s)

Year

Alison Johnson Rue

and Dan Johnson

2012 There is no easy way for a

Problem

student to connect with an

online tutor.

Greg Goff and

Hesky Kutscher

2010

People traveling do not have

ready access to their chil-

dren's medical records, which

may be needed if the child
gets injured or sick.

Jason Kiesel

2009

There is no easy way for

residents of a city to report
quality-of-life issues, such as
graffiti or an abandoned car.

Solution

That Resulted

Create an online platform that

makes it possible for any student
to connect with a tutor at any time.

lnstaEdu
(www.instaedu.com)

Create an online platform that can

be pulled up from any Web browser
or on a smartphone that provides
access to a child's full medical
history.

MotherKnows (www.
motherknows.com)

Create a mobile app that allows

a resident to take a photo of
the problem, send it to a central
clearinghouse in city government,
who will alert the appropriate city
agency to fix the problem.

CitySourced (www.
citysourced.com)

(Continued)

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54

PART

Tffiffi&K

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

A"& Businesses Created to Fill

a Gap in the Marketplace

Name of Businesses

Gap in the Marketplace

Resulting New Business Opportunity

That Resulted

No fitness centers that are open

24 hours a day

24-hour fitness centers to accommodate people

who work odd hours

Anytime Fitness, 24l1our Fitness

Lack of toys and toy stores that

focus on a child's intellectual

Toy stores, toy manufacturers, websites that sell

Launchpad Toys, Little Bits,

educational toys, and toy and smartphone app

combinations

Modular Robotics, Ubolly

For-profit and non-profit organizations that teach

older girls to code, after-school programs that
engage school-age girls in engineering-related
projects, interactive books and games that
interest young girls in engineering

Girls Who Code, Engineering for

Kids, GoldieBlox, Roominate

Boutiques and retail stores that sell fashionable

clothing for hard-to-fit people, including plus-sized
clothing, maternity clothes, or clothing for tall or
short people

Casual Male, Fashions to Figure,

development
Too few women pursuing

careers in engineering

Shortage of clothing stores

that sell fashionable clothing
for hard-to-fit people

Motherhood Maternity

finding clothes that fit). One woman put on a pair of jeans that fit her, and she
called me an hour later and said, "They still look good, even at home!" Sometimes
people have a body change that happens, whether they have been ill or had a
baby, and there's lots of emotion involved in it. If you can go and buy clothes that
fit, that helps people feel good about themselves.14
A related technique for generating new business opportunities is to take an
existing product or service and create a new category by targeting a completely
different target market. This approach essentially involves creating a gap and
filIing it. An example is PopCap Games, a company that was started to create
a new category in the electronic games industry called "casual $ames." The
games are casual and relaxing rather than flashy and action-packed, and are
made for people who want to wind down after a busy day.
One thing that entrepreneurs must remain mindful of in pursuing business
opportunities, regardless of whether the opportunity results from changing environmental trends, solving a problem, or finding gaps in the marketplace, is
that the opportunity must ultimately be fashioned into a successful business.
The nearby "What Went Wrong?" feature focuses on Everpix, a company that resulted from its founders' frustration regarding the lack of a good service to store
and organize photos. Regrettably, the founder spent too much time focused on
the opportunity at the expenses of the business, as you'll see in the feature.

Personal Gharacteristics
of the Entrepreneur
OEIECTM How did Michael Dell come up wtth the idea of a "build it yourself' computer
3. Discuss the personal char- company? How did Dave Roberts, the founder of PopCap Games, figure out

LEERNTNG

that there is a large and growing malket for "casual' electronic games?
Researchers have identified several characteristics that tend to make some
people better at recognizing opportunittes than others. WeVe already defined
ness opportunities. an opportunity as a favorable set of circumstances t1.at create the need for
a new product, service, or business, but tJ:e term opportudty rcsogtrltion

acteristics oi

entrepreneurs

their
abilityto recognize busF

fiat

contribute to

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56

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

refers to the process of perceiutng the possibility of a profitable new business or

a new product or service. That is, an opportunity cannot be pursued until it's
recognized. Now let's look at some specific characteristics shared by those who
excel at recognizing an opportunity.

Prior Experience
Several studies show that prior experience in an industry helps entrepreneurs recognize business opportunities. For example, evidence over time
about the founders of firms appearing on the Inc. 5OO list shows that well
over 4O percent of those studied got the idea for their new businesses while
working as employees for comparri." in the same industries.ls This finding is consistent with those reported by scholars studying the relationshiP
between industry experience and being able to recognize opportunities.16
There are several explanations for these findings. By working in an industry,
an individual may spot a market niche that is underserved. It is also possible that while working in a particular area, an individual builds a network
of social contacts in that industry that may provide insights that lead to
opportunities.lT
Although prior experience is important in an industry in most instances,
there is anecdotal evidence suggesting that people outside an industry can
sometimes enter it with a new set of eyes, and as a result innovate in ways
that people with prior experience might find difficult. An example is provided
by Sam Calagione, the founder of Dogfish Head Craft Brewery, a very successful brewery based in Milton, Delaware. As indicated in the following quote,
Milton set aside current industry best practices to craft some of his most
popular products:
In the mid-'9Os, some beer enthusiasts and experts called us heretics for brewing
beers with ingredients outside of the "traditional" water, yeast, hops, and barley.
So,

started researching ancient brewing cultures and learned that long ago,

brewers in every corner of the world made beer with whatever was beautiful and
natural and grew beneath the ground they lived on. We (Dogfish Brewery) now
make a whole series of Ancient Ales inspired by historic and molecular evidence
found in tombs and dig sites.18

Cognitive Factors
Opportuni\r recognition may be an innate skill or a cognitive process. te There
are some who think that entrepreneurs have a "sixth sense" that allows them
to see opportunities that others miss. This sixth sense is called entrepreneuriat alertness, which is formally defined as the ability to notice things without
engaging in deliberate search.2o Most entrepreneurs see themselves in this
light, believing they are more "a1ert" than others. Alertness is largely a learned
skill, and people who have more knowledge of an area tend to be more alert
to opportunities in that area than others. A computer engineer, for example,
would be more alert to needs and opportunities within the computer industry
than a lawyer would be.
The research findings on entrepreneurial alertness are mixed. Some researchers conclude that alertness goes beyond noticing things and involves
a more purposeful effort. For example, one scholar believes that the crucial
difference between opportunity finders (i.e., entrepreneurs) and nonfinders
is their relative assessments of the marketplace.2l In other words, entrepreneurs may be better than others at sizing up the marketplace and inferring
the likely implications.

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best choice is to return to the preparation stage-to obtain more knowledge or

experience before continuing to move forward.
Preparation. Preparation is the background, experience, and knowledge
that an entrepreneur brings to the opportunity recognition process. Just as
an athlete must practice to excel, an entrepreneur needs experience to spot
opportunities. Over time, the results of research suggest that as much as 5O
to 90 percent of start-up ideas emerge from a person's prior work experience.
Incubation. Incubation is the stage during which a person considers
an idea or thinks about a problem; it is the "mulling things over" phase.
Sometimes incubation is a conscious activity, and sometimes it is unconscious and occurs while a person is engaged in another activity. One
writer charactertzed this phenomenon by saying that "ideas churn around
below the threshold of consciousness."
Insight. Insight is the flash of recognition when the solution to a problem
is seen or an idea is born. It is sometimes called the "eureka" experience.
In a business context, this is the moment an entrepreneur recogrrizes an
opportunity. Sometimes this experience pushes the process forward, and
sometimes it prompts an individual to return to the preparation stage.
For example, an entrepreneur may recognize the potential for an opportunity, but may feel that more knowledge and thought is required before
pursuing it.
Evaluation. Evaluation is the stage of the creative process during which
an idea is subjected to scrutiny and analyzed for its viability. Many entrepreneurs mistakenly skip this step and try to implement an idea before
they've made sure it is viable. Evaluation is a particularly challenging
stage of the creative process because it requires an entrepreneur to take
a candid look at the viability of an idea. We discuss how to evaluate the
feasibility of new business ideas in Chapter 3.
Elaboration. Elaboration is the stage during which the creative idea is
put into a final form: The details are worked out and the idea is transformed into something of value, such as a new product, service, or business concept. In the case of a new business, this is the point at which a
business plan is written.
Figure 2.5 illustrates the opportunity recognition process. As shown in the
figure, there is a connection between an awareness of emerging trends and

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DEVELoPING SUCCESSFUL BUSINESS IDEAS

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tr"4 Rules for a Formal Brainstorrning

Rule

Explanation

Session

No criticism is allowed, including chuckles, raised eyebrows, or facial expressions that express skepticism or
doubt. Criticism stymies creativity and inhibits the free flow of ideas.
Freewheeling, which is the carefree expression of ideas free from rules or restraints, is encouraged; the more ideas,
the better. Even crazy or outlandish ideas may lead to a good idea or a solution to a problem.
The session moves quickly, and nothing is permitted to slow down its pace. For example, it is more important to
capture the essence of an idea than to take the time to write it down neatly.

Leapfrogging is encouraged. This means using one idea as a means of jumping forward quickly to other ideas.

Brainstorming sessions dedicated to generating new business ideas are often less formal. For example, while creating Proactiv, a popular acne treatment
product, Dr. Katie Rodan, one of the company's founders, hosted dinner parties
at her house and conducted brainstorming sessions with guests. The guests
included business executives, market researchers, marketing consultants, an
FDA regulatory attorney, and others. Rodan credits ttris group with helping her
and her co-founder brainstorm a number of ideas that helped shape Proactiv
and move the process of starting the company forward.2e Similarly, Sharelle
Klaus-the founder of Dry Soda, a company that makes an all-natural soda
that's paired with food the way wine is in upscale restaurants-tested her idea
by first talking to her husband's colleagues, who were in the food industry, and
then tapped into the professional network of a friend who owned a bottled water
company. Through the process, she met a chemist, who was instrumental in
helping her develop the initial recipes for her beverage. Klaus also went directly
to restaurant owrrers and chefs to ask them to sample early versions of her
product.so While this approach only loosely fits the definition of brainstorming,
the spirit is the same. Klaus was bouncing ideas and early prototypes of her
product off others to get their reactions and generate additional ideas.
An individual's imagination is the only limiting factor to brainstorming.
Asking students to complete a bu$ report is a popular technique that is used
in classrooms to teach brainstorming. To compile a bug report, students are
instructed to list 50 to 75 conditions or "things" that "brlg" them in their everyday lives. Asking students to identi$r a number of conditions or things that
bug them reduces the likelihood that they will speciSr only obvious things that
bug them (e.9., campus parking, dorm food, and untidy roommates). Students
can also be encouraged to hold focus groups with friends to brainstorm conditions that can be included on their "bug" list.

Focus Groups
A focus group is a gathering of 5 to 10 people who are selected because of
their relationship to the issue being discussed. Focus groups are used for a
variety of purposes, including the generation of new business ideas.
Focus groups typically involve a group of people who are familiar with a
topic, are brought together to respond to questions, and shed light on an issue
through the give-and-take nature of a group discussion. Focus groups usually
work best as a follow-up to brainstorming, when the general idea for a business has been formulated-such as casual electronic games for adults-but
further refinement of the idea is needed. Usua1ly, focus groups are conducted
by trained moderators. The moderator's primary goals are to keep the group
"focused" and to generate lively discussion. Much of the effectiveness of a

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62

PART

2 I

DEVELoPING SUCCESSFUL BUSINESS IDEAS

articles, and blog posts based on your topic. This technique, which is available
for free, will feed you a daily stream of news articles and blog postings about
specific topics. Another approach is to follow business leaders and experts in
the industries you're interested in on Twitter. The best way to locate people on
Twitter you might be interested in following is by typing into the search bar
relevant keywords preceded by the "#" sign. For example, if you're interested
in solar power, type "#solarpower" into the search bar. All the results will be
people or companies who tweet about solar power topics.
Once an entrepreneur has an idea, it often needs to be shaped and finetuned. One way to do this-in conjunction with the suggestions made previously-is to enlist a mentor to help. An explanation of how to use a mentor in
this regard, and where mentors can be found, is described in the "Partnering
for Success" feature.

Other Techniques
Firms use a variety of other techniques to generate ideas. Some companies set
up eustomer advisory boards that meet regularly to discuss needs, wants,
and problems that may lead to new ideas. Other companies conduct varying
forms of anthropological research, such as day-in-the-life research. Intuit,
the maker of Quicken, Quickbooks, and TurboTax, practices day-in-the life research. The company routinely sends teams of testers to the homes and businesses of its users to see how its products are working and to seek insights for
new product ideas.

Encouraging the Developrnent

of New Ideas
I,EARNING OBIEGTIVE

5.

Discuss actions to take

to encourage continuous
development of new ideas
in entrepreneurial firms.

In many firms, idea generation is a haphazard process. However, entrepreneurial ventures can take certain concrete steps to build an organization that
encourages and protects new ideas. Let's see what these steps are.

Establishing a Focal Polnt for ldeas

Some firms meet the challenge of encouraging, collecting, and evaluating ideas
by designating a specific person to screen and track them-for if it's everybody's
job, it may be no one's responsibility.s2 Another approach is to establish an
idea bank (or vault), which is a physical or digital repository for storing ideas.
An example of an idea bank would be a password-protected location on a firm's
intranet that is available only to qualified employees. It may have a file for
ideas that are being actively contemplated and a file for inactive ideas. Other
firms do not have idea banks, but instead encourage employees to keep journals of their ideas.

Encouraging Creativity at the Firm Level

There is an important distinction between creativity and innovation. As indicated
in Chapter 1, innovation refers to the successful introduction of new outcomes by
a firm. In contrast, creativity is the process of generating a novel or useful idea;
however, creativity does not require implementation of an idea. In other words,
creativity is the raw material that goes into innovation. A team of employees may
come up with a hundred legitimate creative ideas for a new product or serice,
but only one may eventually be implemented. Of course, it may take a hundred
creative ideas to discover the one that ideally satisfies an opportunity.

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64

PART

2 I

DEVEL.PING SUCCESSFUL BUSINESS IDEAS

An employee may exhibit creativity in a number of ways, including solving

a problem or taking an opportunity and using it to develop a new product or
service idea. Although creativity is typically thought of as an individual attribute, it can be encouraged or discouraged at the firm level. The extent to which
an organization encourages and rewards creativity affects the creative output
of its employees.S3 Table 2.5 provides a list of actions and behaviors that encourage and discourage creativity at both the organizational level and the individual supervisor level.

trffiffi&ffi

tr"ffi Actions and Behaviors That Encourage and Discourage Creativity

Organizational

lnhibitors

ffi

Level

of Creativity

ffi
ffi

Facilitators
of Creativity

*
&
&
H

lndividual
Supervisory

Failing to hire creative people

Maintaining an organizational culture that stifles people
Retaining people in the same job for years, preventing them from broad and deep
experiences
Promoting a mentality suggesting that the best solutions to all problems are known

Supporting and highlighting creativity's importance in all parts of the firm

Overtly rewarding those demonstrating creativity in their work
lnvesting in resources for the purpose of helping employees become more creative
Hiring people with different skills and viewpoints compared to current employees

lnhibitors
of Creativity

s Being pessimistic, judgmental, and critical

m
Punishing people for failed ideas
E lnsisting on precision and certainty early in the creative process
s Being inattentive, acting distant, and remaining silent when employees want
to discuss new ideas

Facilitators

ffi

Level

of Creativity

Listening attentively for the purpose of openly acknowledging and supporting ideas early
in their development

ffi
ffi
ffi

Tieating employees as equals for the purpose of demonstrating that status isn't important
Speculating, being open, and building on others' ideas
Protecting people who make honest mistakes and commit to learning from them

Chmpter SumrffiIfr"ryr
&S 3 . An idea is a thought, an impression, or a
notion. An opportunity is an idea that has
the qualities of being attractive, durable,
and timely and is anchored in a product
or service that creates value for its buyers
or end-users. Not all ideas are opportunities. Once an opportunity is recognized,
a window opens, and the market to fill
the opportunity grows. At sorne point, the
market matures and becomes saturated
with competitors, and the window of opportunity closes.

g-&*. Observing trends, solving a problem,

and finding gaps in the marketplace are
the three general approaches entrepreneurs use to identi$z a business opportunity. Economic forces, social forces,

technological advances, and political action

and regulatory changes are the four environmental trends that are most instmmental in creating opportunities. Through the
second approach, entrepreneurs identi$z
problems that they and others encounter
in various parts of the lives and then go
about developing a good or service that is
intended to solve the identified problem.
Carefully observing people and the actions
they take is an excellent way to flnd problems that, when solved, would create value
for a customer. Finding gaps in the marketplace is the third way to spot a business
opportunity. Typically, the way this works
is that an entrepreneur recognizes that
some people are interested in buying more

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66

PART

2 I

DEVELOPING SUCCESSFUL BUSINESS IDEAS

2-8. What is the meaning of the term opportunity reco$nition?

2-9. In what ways does prior industry
experience provide an entrepreneur
an advantage in recogntzing business

opportunities?

2-LO. What is entrepreneurial alertness and why

is it important to entrePreneurs?
2-ll. How does an extensive social network
provide an entrepreneur an advantage in
r eco gnizing business opportunities?
2-L2. What is the difference between a
weak-tie and a strong-tie relationship?
Which type of tie is most likelY to
help an entrepreneur find an idea
and why?
2-13. What is creativitY?

2-14. How does creativity contribute to the

opportunitY reco$nition Process?
2-L5. What are the five stages of the creative
process for an individual?
2-L6. What are the differences between an
opportunitY and an idea and whY
are those differences important for
entrepreneurs?

2-L7.'Mhy is "no criticism" the number-one rule

for brainstorming?
2-L8. How is a focus group used to generate new
business ideas?
2-Lg. What is the purpose of day-in-the-life
research?
2-2O. What is the purpose of an idea bank?
2-21. How do businesses encourage creativity at
the firm level?

Application Ouestions
2-22. Justin Coban plans to write an e-mail
message to his dad asking for a loan. The
pu{pose of the loan will be to start a company to sell an environmentally friendly
line of cleaning supplies that are suitable
for light manufacturing facilities. Justin
has spent the past two years developing tl e
products in his spare time and wants to
convince his dad that the idea represents
an attractive business opportunity. What
information and insights about his potential company should Justin include in the
e-mail message?
2-23. Identi$r three start-ups, other than those
discussed in this chapter or listed in Table
2.2, that were started to solve a problem.
Briefly describe the problems the three
start-ups are solving and how they are
going about doing so.
2-24. Marshall Hanson, the founder of Santa
Fe Hitching Rail, a chain of nine steak
restaurants in New Mexico, is considering
expanding his menu, which is currently
restricted to steak, hamburger, potatoes,
and fries. He has just read a book about
entrepreneurship and learned that entrepreneurs should study social trends to
help identiSz new product opportunities.
What are some current social trends that
might help Marshall choose items to add
to his menu? Given the trends you list,
what items do you suggest Marshall add
to expand his restaurant's menu?
2-25. Tiffany Jones owns a small chain of fastcasual restaurants in Denver that sell

sandwiches, soups, wraps, and desserts.

In general, her restaurants are successful,
but she feels they are getting "stale" and
could benefit from new ideas. What techniques could Tiffany use to generate new
ideas for her restaurants?
2-26. As mentioned in this chapter, "prior experience" in an industry helps entrepreneurs
recognize business opportunities. This
concept of "help" extends to prior experience in any aspect of life-whether it is in
sports, music, or a volunteer activity. In
what areas to you have a good amount of
prior experience? How could this prior experience position you to start a business?
2-27 . Make a tist of your strong-tie and weak-tie
realtionships. Include at least five names
on each list. Select two names from your
list of weak-tie relationships and speculate
on the types of new business ideas you
think these individuals would be uniquely
qualified to help you contemplate.
2-28. Imagine that youVe been hired by Fitbit, the
wearable activity tracker, to conduct focus
groups on your campus to get a better sense
of how Fitbit can be as relevant and useful
to college students as possible. How would
you go about setting up the focus groups?
What are the primary issues on which you
would concentrate with the focus groups?

2-29. How could ,{J Forsythe and Anthony

Martin, the co-founders of iCracked, the
subject of the opening feature for this
chapter, have utilized library and Internet
research to flesh out their business idea?

t-

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2 I

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by showing the reservation on your smartphone to the

attendant. lf the lot is gated and does not have an attendant, you gain admittance by using the Parking Panda
app to scan a code at the entrance, which opens the
gate. You exit the lot in the same manner. Parking spots
can be reserved on a one-time basis or can be reserved
for regular use. Parking Panda collects the fee at the
time the reservation is made and then reimburses the
owner of the spot.
Parking Panda makes money by taking a commission on
each spot that is rented. lt negotiates directly with commercial lots and garages. lndividuals and businesses that
have parking spaces available simply upload a picture of

their spot and set a price. Parking Panda lets the owner
know when a spot has been rented and handles the payment. Parking Panda also has arrangements with sports
leagues such as the National Basketball Association
(NBA) and the National Hockey Association (NHL) to facilitate parking for their events.
2-32. Based on the material covered in this chapter, what
questions would you ask the firm's founders before
making your funding decision? What answers would
satisfy you?
2-33.|f you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not?

GASE 2.1

Dropbox: Solving a Cornpelling Problern

in a Snnooth ffIam,ner
u

bfefu.'www"dr*p&oxeom * flac*book; ffrop&ox * Iuriffer." @ffrop$ox

Bruce R. Barringer, Oklahoma State University

R. Duane lreland, Texas A&M University
trmtroduct$onr

*rew

ln early 2007, Drew Houston was on a bus from Boston

The Dropbox story starts when Houston was young. He

started writing code in his early teens. At 14, he signed up
to beta test an online game, and began identifying security
flaws. The company soon hired him as their networking
programmer, in exchange for equity. Houston worked at
start-ups through high school and college. By the time he
got to MlT, most of his time was spent coding. He knew
that to start businesses, he'd need to know more than just
coding, so he starting reading business books. He read
books on finance, management, negotiations, etc.
After graduating from college, Houston took a job
with a tech firm. The day on the bus from Boston to New
York City took place about ayear into the new job. Four
months later, he flew to San Francisco to pitch the idea
for Dropbox to Paul Graham of business accelerator Y
Combinator. Graham insisted that Houston have a cofounder, even to pitch. Houston was soon introduced to
Arash Ferdowsi, who was a junior engineering student
at MlT, and the two hit it off. They decided to work on
Dropbox together. They were soon admitted and went

to New York City. He was excited because he had four

hours to work on his laptop. All of a sudden, he had
a feeling in the pit of his stomach that something was

wrong. He searched through his pockets and discovered that he had forgotten his USB memory stick. He
was now stuck on the bus with nothing to work on.
Frustrated, he immediately starting building technology
to synch files over the Web. Fast forward to the present. Houston's eventual solution, Dropbox, has over 200
million users. Dropbox allows users to create a special
folder on each of their devices. Once a piece of digital
content is placed in a folder (Word file, Excel file, photo,
video, etc.), Dropbox automatically syncs it across all
the users' devices, permitting the content to be retrieved
and updated from any device. The content also appears in a file on Dropbox's website. And if you make
a change to a file in one location, that file is updated
across all devices. Dropbox completely solves the problem of working on a file on one device, such as an office
computer, and then not having it available on another
device, like a laptop at home. You can even invite others
to view these files, making the sharing of files easy. lt's
like having a magic pocket that contains all your digital
content and is always with you, with the ability to share
the digital content with whomever you want.
Although Dropbox's service is easy to use, it wasn't
easy to build or even easy to explain at the outset. lt's
a story of two determined entrepreneurs who set out to
solve a problem, build an elegant solution, and then did
a lot of things right in executing on their business idea.

HCIustefl?

through Y Combinator in 2007.

ftlinimatr Viahls Freduct and Ssivirng a Frohtren't

Fecpfi* ffiidra*t Knsw T$'rey Had

After their Y Combinator experience finished, Houston
and Ferdowsi raised $1.2 mittion in funding. A challenge
they faced from the beginning is that they were solving
a problem that most people didn't know they had. There
were ways for people to transfer files from one device to
another, such as USB memory sticks, e-mailing files to

(penulTuoc)

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pARr

2 I

DEVELopTNG succESSFUL BUSTNESS IDEAS

potential of Dropbox will be determined by how they

meet these challenges.
There are two primary challenges that Dropbox is
facing. First, it deals with enormous complexity. lts 200
million users save one billion files every 24 hours. ln addition, anytime a device manufacturer tweaks the software
or hardware associated with their device, the Dropbox
team must remain on top of the change to make sure that
its service will still work for that device. Second, Dropbox
is facing an increasing number of competitors. Apple
iCloud is an example. Dropbox has an edge over iCloud
because it's available across platforms, but more challenging competition may be coming. lf Google, Apple, or
Samsung, for example, decided to go head-to-head with
Dropbox, those companies would have the technological
chops to give Dropbox a go. Many believe Dropbox is up
to the challenge. ln January 2014, Fast Compay magazine listed Dropbox as the most innovative company in
America in the category of Productivity.

Discussion Questions
2-34. What environmental trends are working in Dropbox's
favor as the firm seeks to operate profitably? What
environmentaltrends may work against Dropbox
and why?

2-35. What personal characteristics does Drew Houston

possess that suggest he may have what it takes to be
a successful entrepreneur?
2-36. What problem did Dropbox's founders solve with the
service they developed?
Sources: Dropbox Homepage, www.dropbox.com, accessed
March 24,2014; Forbes, "Dropbox: The lnside Story of Tech's
Hottest Startup," November 7,2011; E. Ries, "How Dropbox
Started As a Minimal Viable Product," available at http://techcrunch.com /201 1 / 1 0/1 9/d ropbox-m n imal -viable-prod uct; A.
Walsh, "Dropbox: A Social Web Business Case Study,"Social Web
Q&A Homepage, available at http:socialwebquanda.com, posted
August 26,2012, accessed March 21,2O14.
i

cAsE 2.2
Rover.com: Don't Chuckle:This Is One km.pressive
Business fdea
. Web: www.raver,com t

Facebook: Rover.cam o Twitter: @RoverDot0om

Bruce R. Barringer, Oklahoma State University

R. Duane lreland, Texas A&M University

lntroduction
Jill is a26-year-old sales rep for a technology company.
She lives in a two-bedroom townhouse with her Golden
Retriever Rex. Jill travels about twice a month, and when
she's gone, she has three options regarding care for Rex.
Option #1 -She can ask a neighbor to watch him, but
that's hit-and-miss, and she hasn't found anyone she
can depend on; Option # 2-She can take him to her
parents' house, but they live about an hour away; and
Option #3-She can take Rex to one of the two kennels
that are close to where Jill lives. There is nothing wrong
with them, but they are typical kennels. The dogs are
cooped up most of the day, and a month ago, Rex came
home from the kennel with a cough he picked up from
another dog.
Jill loves Rex and has no plans to give him up, but
every time she travels, it's a problem to decide what to

do with Rex.

A Bad Experience at a Kennel l*eads

to a Business ldea
Many people are just like Jill. They either have trouble
finding suitable arrangements for their dog when they
travel, or they feel bad when they're packing for an
exciting trip with their dog's big, sad eyes staring at
them. The idea for Rover.com-a service that connects

dog owners with dog sitters-occurred to Greg

Gottesman after his yellow Labrador Ruby Tuesday
had a bad experience at a traditional kennel. To see if
the idea had legs, Gottesman pitched it at a Starlup
Weekend event in Seattle in 2011. Startup Weekends
are events that are held across the country. Anyone can
pitch a business idea and get feedback from peers.
Gottesman's idea received top prize, and six months
later, he launched Rover.com.
While Gottesman may have had a good pitch, a
little research helps validate the business idea. The dog
boarding/sitting market is about $6 billion ayear. More
encouraging is that the market could be much larger.
Many people don't travel because there is no one they
can trust to watch their dog(s). ln addition, a survey of
1,000 dog owners by PetCare.com indicated that 80
percent worry about the care their dogs are getting while
they're away, and 66 percent are unhappy with their current boarding situation. A total of 70 percent said they
would travel more if they had a trusted dog sitter. To get
a sense of just how deeply some people care about their
pets, a survey of dog owners (commissioned by Rover.
com) found that 76 percent of dog owners self-identify
themselves as "pet parents," as opposed to "dog
owners." A growing number of people see their dogs
as "family members" rather than pets. The American
Veterinary Medical Association found that people who

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PART

2 I

DEVELoPING SUCCESSFUL BUSINESS IDEAS

headquaders aimed at the part of the building where

Rover.com's employees let their dogs hang out. The
day this case was written, there were six dogs in-house,
including Carmel, Georgie Girl, Gus, Charlie, Oscar, and
another Gus. Oscar, for example, is a three-year, onemonth-old Miniature Schnauzer. He was lounging on a
comfy chair the day the case was written. Rover's sitters
are also equipped with some cool technology. The company's app allows sitters to send photos of the dogs
they are watching to their owners while they're away.
ln late 2013, Rover.com introduced Rover Reel,
which offers Rover customers free videos of their dog's
experience during their stay with a Rover.com sitter.
Sitters simply submit sufficient photos of a dog they're
watching, and they will receive a personalized video
(Rover Reel) of the dog's stay to share with the owner.

ffinowth Flans & Venture #apitatr

Rover.com's potential has garnered plenty of attention.
ln 2013, the company increased its revenue by 800 percent and currently has about 200,000 dog owners listed
on its site. lncredibly, as of January 2014, the 43-person
company had raised $25 million in funding from topshelf venture capital firms and pet retailer PetCo. The
numbers in the pet industry are staggering. Americans
spent $S3 bittion on their pets in 2012. Currently, there
are roughly 78 million dogs in the United States (this
number is an all-time high).
ln light of these statistics and what it has learned
in its three years of existence, Rover.com has a threeprong growth strategy, as follows:

1.

Spread geographically, including in international markets.

2.

Provide new services, including dog grooming and dog

walking.

3. Add other animals, such as cats, horses, and reptiles.

Rover.com's CEO Aaron Easterly, a passionate dog
lover, believes the company is only a fraction of the size
it can become.

Discussion Questions
2-37.|n the United States, what environmental trends
are supporting the development of Rover.com's
business?
2-38. How might Rover.com use focus groups to gain a
better understanding of its current and potential
customers and their needs?
2-39.|n this chapter, we noted that a true business opportunity is attractive, durable, timely, and anchored in a
product or service that creates value for a buyer. To
what extent does Rover.com's service satisfy each of
these criteria?
Sources: Rover.com Homepage, www.rover.com, accessed
March 21,2014; C. Garnick, "Rover.com Lands $12 Million More
in Financing," The Seattle Times," March 12,2014; "Rover:
A Dog's Tale," Strictly VC, available at http://www.strictlyvc.
com/ 201 3 / 1 O / 03 / rover-dog s-tal e, posted Octo ber 3, 201 3,
accessed March 22,2014; Sources: Startupbeat.com, "Dog 2.0:
This Time is Ditferent (Really), available at http://startupbeat.
com/201 3/ Og / 1 0/ dog-2-}-th is-ti me-is-different-real ly-id3433/.
posted September 10, 2013, accessed March 21,2013.

Endnotes
I. H. Yang, Y. Zheng, and X. Zhao, "Exploration or
exploitation? Small firms' alliance strategies with
large firms, " Strategic Management Journa.L 35,
no. I (2014): 146-L57.
2. comScore, "comScore Releases 2013 U.S.
Search Engine Results," November 13, 2013,
available at http : / / www. comscore. com / Insights

Press_Releases / 2O | 3 / L I / comScore_Releases_
October_2O 1 3_Us_Search_Engine_Rankings,

(accessed March 18, 2Ol4).

with Michael Yang, CEO
of Become.com," npost, originally posted on
April 24, 2006, available athttp: / /www.npost.
com/?s=become.com, (accessed on March L8, 2Ol4).
4. P.A. Coomes, J. Fernandez, and S. F.
Gohmann, "The Rate of Proprietorship among
Metropolitan Areas: The Impact of the Local
Economic Environment and Capital Resources,"
Entrepreneurshtp Theory, qnd Practice, 37, no. 4
(2O13): 745-770.
5. Immersion Active, "Resources 5O+ Fact and Fiction,"
available at http : / / www. immersionactive . com/
3. M. Yang, "Interview

resources/50-plus-facts-and-fiction/, (accessed
March L8,2OL4).

6.
7.

Nest Labs Homepage, www.nest.com, accessed on

March 18,2014.
Pew Research Internet Project, "Social Networking
Fact Sheet," available at http:/ /www.pewinternet.
or g / fact-sheets/social-networking-fact-sheet/,
posted December 27, 2OL3, (accessed March 18,
2Or4).

8. ABlresearch, "Ninety Million

Devices Will be Shipped

Wearable Computing

in 2O14 Driven by Sports,

Health and Fitness," ABlresearch Homepage,

www.aibresearch.com, Accessed March 18, 2OL4.
9. T. Freeman, "Obamacare's Other Surprise," Tlle
New YorkTtmes, May 25,2013.
10. J. Nicas, "Drones Find Fans among Farmers,
Filmmakers,o' Tle WaLL Street Journal, March 10,
2014.
11. P. Kotler, Marketing InsightsJromA to Z (New York:
John Wiley & Sons, 2OO3), 128.
12. Cityslips Homepage, www.cityslips.com, (accessed

March 18, 2Ol4).

13. Yogitoes Homepage, http: / /yogitoes.com/,
(accessed March 18, 2Ol4).
14. Ladies Who Launch homepage, www.ladieswholaunch.com, (accessed March 18, 2Ol4).

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