The Bird-in-Hand Principle: Who I Am, What I Know, and Whom I Know

Abstract

This technical note explores a framework by which entrepreneurs can evaluate their ideas before going forward based on who they are, what they know, and whom they know. Drawing on frameworks presented in textbooks, trade books, journal articles, periodicals, and on Web sites that claim to predict the feasibility and value of new venture ideas. Figure 1 depicts a simple and useful summary of four key concepts at the heart of many of these frameworks: Is it doable? Is it worth doing? Can I do it? Do I want to do it? These questions address feasibility from a technical, market, financial, organizational, and motivational standpoint.

Excerpt

UVA-ENT-0090

The Bird-in-hand Principle:

Who I Am, What I Know, and Whom I Know

Not all ideas are great opportunities—take, for example, New Coke or the Ford Edsel. Yet someone thought enough of it to actually invest in it and produce it. Understandably, most novice entrepreneurs, especially those who have good job market prospects, tend to worry a lot about finding the “right” opportunity.

Idea versus Opportunity: Assessing Feasibility and Value

There are several frameworks in textbooks, trade books, journal articles, periodicals, and on Web sites that claim to predict the feasibility and value of new venture ideas. Figure 1 depicts a simple and useful summary of four key concepts at the heart of many of these frameworks:

. . .

Keywords: Entrepreneurship, new ventures, opportunities, idea generation, means-driven decisions