ENTREPRENEURSHIP FOR ENGINEERS AND SCIENTISTS
CHAPTER 3
DESIGNING AND DEVELOPING A TECHNOLOGY START–UP
LEARNING OBJECTIVES
After studying this chapter, students should be able to
1. Discuss the development of a business concept
2. Explain the analytical tools of feasibility analysis
CHAPTER OVERVIEW
Before ever considering the start-up of a business, it is important to develop a testable concept
that can be proven in the marketplace with real customers. Absent that vital effort, the chances
CHAPTER OUTLINE
1. Developing a business concept
a. Features versus benefits
2. Conducting a feasibility analysis
a. Analyzing the industry
3. Is this business feasible?
4. Summary
Entrepreneurship for Scientists and Engineers
END OF CHAPTER QUESTIONS
1. Why is it important to focus the business concept?
The business should be defined broadly enough to allow for change when the business
environment changes. In the HeadBlade example in the text, Greene did not say that he
2. You have developed a new software product that more effectively performs natural
language searches through databases using voice recognition technology. What would your
plan be for testing this product with customers?
This question is designed to get students to think about the kinds of information they might
want to capture from potential customers and how they will go about collecting and
3. Based on the product in question 2, what would you want to know about the industry to
feel confident that you could enter it with a new venture? Be specific.
In general, you will want to gather evidence about the volatility, complexity, and uncertainty
Is the industry growing?
Where are the opportunities?
Entrepreneurship for Scientists and Engineers
What are the trends and patterns of change in the industry?
How does the industry respond to new technology?
How much is spent on R&D?
Who are the major competitors?
Are young firms surviving?
What are the long-term trends?
What are the threats to the industry?
What are the gross margins in the industry?
4. What are some ways that you can fill the gaps in expertise and experience in a founding
team?
This question will spawn a variety of responses including the following suggested in the
chapter:
5. Suppose you determine that there are not enough customers for a new product you’re
considering. What could you do, short of abandoning the product?
You need to reconsider the initial target market you defined to see if perhaps you missed a
larger niche with customers who better understand your product. You would certainly want
CASE STUDY SUGGESTIONS
The case study on Elon Musk presents an opportunity to discuss several concepts from the
chapter:
• The concept of a serial entrepreneur, an entrepreneur who starts multiple ventures
either simultaneously as in the case of Musk or sequentially. The interesting thing about
Musk is that two of his three current ventures involve game-changing technologies and
the two previous ventures that he sold were leading-edge Internet companies. This is
an entrepreneur who wants to produce huge impact with his technologies. What does
it take to be successful at disruptive technology start-ups?
Entrepreneurship for Scientists and Engineers
ACTIVITY
Study an Industry
Have students form groups of 3-4 and choose an industry that interests them. Following the
guidelines in the chapter, ask the students to analyze the industry and do a short written or oral