The Canadian Innovation Centre has worked with thousands of new ventures and through our research we have identified eight critical factors that have the greatest impact on the likelihood of new venture success.
The eight factors are:
- Performance advantage – is your innovation better than the competition?
- Market readiness – are you ready to go or still in development?
- Product uniqueness – does you innovation stand alone or in a crowd?
- First customer – is somebody ready to pay?
- Distribution – can you get it to market?
- Market size – is the market viable?
- The entrepreneur – do you have the right stuff?
- The financial plan – can you make money?
Our research shows that if there is a major gap with any of the above critical factors, the likelihood of venture success is significantly reduced. Further, our research shows that if gaps are addressed, the likelihood of venture success increases.
On June 21, the Canadian Innovation Centre hosted a webinar to discuss using the 8 critical factors to predict new venture success. In that webinar, Andrew Maxwell of the Canadian Innovation Centre, described the 8 critical factors and gave real-life examples from the Canadian Innovation Centre’s work with entrepreneurs. Andrew’s presentation is in our document library (http://innovationcentre.ca/learning-centre/document-library/critical-factors-for-venture-success/ ) and a recording of the session is available in our video library (http://innovationcentre.ca/learning-centre/videos-library/predicting-new-venture-success/ – sorry for problems with the sound quality).
The Canadian Innovation Centre believes that knowledge of these 8 critical factors can be very valuable to entrepreneurs, and so we have created a series of tools designed to help entrepreneurs increase their likelihood of venture success, including the CFA Snapshot, a free online self-assessment tool. You can check these out at http://innovationcentre.ca/services/entrepreneur-support/critical-factor-assessment/ .
In future blogs we will explore some of the individual critical factors, how they can be assessed and how they can be used to increase the likelihood of success.
As always, we would appreciate your questions, comments and suggestions.