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.

Any Big Problem is a Big Opportunity: No Problem, no solution, no company.

Find a “Long wave”, immutable trend that will last .

Important to match capabilities and interests

Mobilize Resources

Emerging Markets Innovations in

Energy

Information Technology

Bio-Engineering

Successful New Ventures

Venture Capitalists Standpoint

Financing a New Venture

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 The Market Risk Operational Model Risk Financial Model Risk

The risk of what is at stake if the business fail 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 internal 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/