Start-up's success is 1% your invention, 99% your business skills.

 

 

2.

Inception

- no product revenues and little expense history; team is incomplete; there is business plan, and the beginnings of product development

Organization: Informal

Management:  Entrepreneurial

Technology: Concept

Funding Stage: Seed

pp.

Problem

Solution

Action

2.1

Growth Risk

New business formation: move into a competitive business world requires specific type of knowledge, expertise, resources and personal business skills.

  • Identification of the type of the new company

  • Selection of the type of entity and ownership

  • Starting the new company in an enabling environment such as business incubator

 

 

8 Key Entrepreneurial Questions

 

2.2

Technology & Production Risk

2.3

Marketability & Competing Risk

  • Overoptimistic estimates of market penetration and shares

  • Product design can not be tailored to the needs of real users until thorough market research has been done

  • Low market acceptance

  • Customer's resistance to change

  • Making classic marketing mistakes first-time entrepreneurs usually make

  • Understanding the market needs, discontinuities, and opportunities

  • Clear and realistic picture of the "package" functional product specifications

  • Preparation of the marketing and selling strategy

  • Getting above the competitors

Customer Success 360

Customer Value Creation

Buzz Marketing

Selling Is Problem Solving

Synergistic Selling

2.4

Financial Risk

  • Insufficient funds or access to top-up finance

  • Need to address basic capital and cash-flow issues

  • Wrong mix of funds (e.g. gearing is too high due to high debt to equity ratio)

Venture Financing Funnel

Key Documents

 

 

  • Good understanding of the venture financing process

  • Selection of the types of financing required for different types of activities

  • Identification of possible sources of seed capital: bootstrapping, business angels, venture capital funds, development funds

  • Good understanding of the investment opportunity selection criteria of different types of investors

 

 

 

Venture Financing

 

2.5

Team & Management Risk

  • Not enough time

  • Can't do everything

  • Constant fire fighting

  • Opportunity overload

  • Development of the doer and decision maker skills

  • Selection of the best management support system at lowest cost

9 Roles of a Team Leader

Winning Team: 7 Elements

Venturepreneur