This week I had the privilege of judging an undergraduate business plan competition….
Real dollars were at stake for the top two plans, so the decision was not taken lightly. Each plan started with a good idea and a passionate team. From here, it went South.
Not a single player adequately defined the market opportunity. Instead, they opted for broad-stroke assumptions and often came up with an inflated market size estimate. Obviously, this error had a ripple effect for the financial projections and overall project viability.
Instinctively, my fellow judge and I mentally raced back to the MBA market-sizing case study question: “What is the market size for dog food in Italy?” We provided the contenders with a primer on market sizing, making realistic assumptions, and using a proxy. Oh yes, and oft-left-behind common sense.
While it would be easy to rip these undergrads to shreds, the truth of the matter is that the same mistakes are made every day by full-grown, experienced adults that should know better. Which brings us to how marketing can best earn a seat at the table: be well-versed in all the numbers and demonstrate that all financial projections stem from properly estimating the market.
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Tags: Startups