NEW VENTURE OPPORTUNITY
"Let him that would move the world, first move himself”
Socrates
Ian Hardcastle - Zhang Guo – Daniel Caballeros – Nicole Camacho – Kimberly Cafarelli
Recognizing Opportunity: The Key factors that turn a novel Idea into a booming business
Good Opportunities address important market needs.
What’s the big problem?
Look to the future.
Important to match capabilities and interests
Intensity of Competition
Mobilize Resources Money Support Attention of Media Alliance with Power Figures
Today’s Opportunity Innovations in Energy
Information Technology
Bio-Engineering
Social Media
Successful New Ventures
Venture Capitalists Standpoint
Evaluating Standpoints Team
C.E.O. Market
Size Demand
Product/Value proposition for solution Revenue Valuation
Unique Technology Competitive Edge Difficult to execute
Financing a New Venture Bootstrapping
Using whatever resource you have at hand Savings Account Credit Cards
Grants – Free Money Catalog of Federal
Domestic Assistance Very Selective
Medicine Technology
Debt Financing
Bank Loans Builds
creditworthiness Full Ownership of
Business SBA Loans
Equity Financing Finding
Investors Venture Capital
Other peoples money
High Risk/High Return
New Venture Risk Not all risk can be removable
Entrepreneurs are people that are willing to take risk
Focus on managing risk instead of taking risk
Two types of risk in a new venture: The risk of the uncertainty surrounding the
business (External Risk) The Market Risk Operational Model Risk Financial Model Risk
The risk of what is at stake if the business fail (Internal Risk) Opportunity Risk Financial Risk
Two Types of Risk External
Risk The risk
surrounding the business
Internal Risk The risk inside
the business
External Risk The Market risk
A large enough market to support the business Whether the market is growing What trend exist in the industry How competition is structure Distribution of products/services
Operational Model Risk A business’s operation to deliver goods and services to
customers effectively Financial Model Risk
The “number” issue that determines if a business can work or not
Internal Risk Opportunity Risk
A risk that comes if the business fails and it allows you to do something else with your time and money
Financial Risk The tangible value that you and the investor
lose if the business fails
Marketing a New Venture Strategic Planning Rely on subjective
assumptions & qualitative marketing research Interview potential
clients & relevant business partners
Information to be collected in order to decrease level of “uncertainty” Macro environment Competitive trends Consumer
behavior trend Partial SWOT
Marketing To-Do’s Business Model
Branding
Business Website or Webpage
Communication
Public Relations
Business Model Mission statement
Target audiences
Branding Develop a logo or
company name
Business Websites “About us”
section highlighting the business’s mission statement
Keywords for search optimization
Communication Send emails or
letters to clients, influential third-parties, or customers
Public Relations Social Media
Strategy
Managing a Ventures Growth
• Growth is one of the most essential elements to make your new venture successful.
Two Popular Business Growth Models:
Organization Life Cycle Model
Churchill & Lewis’ Growth Model
L. Greiner’s Business Model
Introduced in 1972
As new ventures grow they are faced with different opportunities, threats and changes
Each stage must go through a “crisis” in order to move to the next stage of growth.
Flaws in the Greiner Curve Lacks important elements that are
needed for a business to grow such as: Networking and making relationships with
clients and other vendors Securing finances of the company Keeping up with new technologies Does not take into consideration the size of
the business; one dimensional
Churchill & Lewis’ Business Growth Model
Revised version of Greiner’s model.
Introduced in the early 1980’s
Published in the Harvard Business Review in 1983
Covers more specifics and detail than Greiner’s model, especially relating to management.
Churchill & Lewis’ Business Growth Model
Each stage breaks down into different management factors: Managerial style Organizational
structure Extent of formal
systems Major strategic
goals Owner’s
involvement
Sources http://www.growthmanagementconsulting.com/liability.html http://www.tameer.org.pk/images/The_Five_Stages_Of_Small_Business_Growth.pdf http://managingnewventures.wikispaces.com/file/view/TMT+Change.pdf/30131267
6/TMT%20Change.pdf http://www.inc.com/encyclopedia/organizational-life-cycle.html http://www.getbusymedia.com/small-business-stats/ http://smallbusiness.dnb.com/business-finance/business-loans/3521-1.html http://sbinformation.about.com/od/creditloans/a/businessfunding.htm http://guides.wsj.com/small-business/franchising/how-to-finance-a-franchise-purcha
se/
http://www.entrepreneur.com/article/222652 http://smallbusiness.chron.com/risks-starting-new-business-4195.html http://findarticles.com/p/articles/mi_m3257/is_1_54/ai_59177136/ http://utilium.com/study_packs/123 http://www.hbs.edu/entrepreneurship/newbusiness/2004fall_1.html http://www.entrepreneur.com/100brilliantcompanies