...Proof of Business Concept Purpose and structure of outline feasibility Learning Outcome At the end of this learning resource, students will recognise the purpose of the outline feasibility in proving the business concept and begin to consider the likely structure and content of their own study. The outline feasibility study Purpose of the Study When starting a new venture you will almost certainly need to prepare a Business Plan. However there is little point in investing days and days of effort in preparing a full plan, without first clarifying your thinking. Undertaking some initial feasibility activities will help you assess whether the idea has sufficient potential to warrant the investment of your further time and effort. The Business Plan is the full detailed blueprint for launching a new business or venture and securing funding resources. Many person days are involved in its preparation, but this initial feasibility work will greatly assist its preparation. The Outline Feasibility is a format for developing your thinking and structuring the presentation of key information in a way that will help the decision as to whether to proceed to the full business plan. The feasibility study and the business plan are very different and each has a very specific role[1]. The Outline Feasibility is your initial check on reality. (Launching the business would be your ultimate reality check!) An outline feasibility that presents a compelling case is the first...
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...INTERCONTINENTAL UNIVERSITY PRESENTING BUSINESS PLANS MGMT422 – 1202A - 02 ADVANCED ENTREPRENEURSHIP 04/22/12 Table of Contents I. Table of Contents……………………………………………………………….2 II. Executive Summary……………………………………………………………..3 III. Introduction …………………………………………………………………….4 IV. Business Description…………………………………………………………….5 V. Description of Proposed Product………………………………………………..6 VI. Definition of the Market…………………………………………………………7 VII. Organization and management descriptions………………………………….8 VIII. Marketing Strategies………………………………………………………….11 IX. Financial Management……………………………………………………………12 X. Appendixes…………………………………………………………………….12 XI. Plan Updating Check List………………………………………………………15 Executive Summary Find Your Gadget, Inc. is the name of the new S corporation I started to introduce my invention product “Ring – in Finder” to market. The industry is huge and the market is big and after researching the market, I found that there is a big demand for this type of product. Being difficult to fund the start – up my business; my best choice is to look for venture capitalists to adopt the idea and support my business financially and help me with the best management strategies advice to reach my goals and succeed with my venture. Convincing venture capitalists requires a solid business plan to be presented with an educated request for...
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...Entrepreneurs must address three important aspects before starting a new venture. They should have clearly defined goals, a sound strategy and should check the feasibility whether the plan is executable or not. If entrepreneurs have clear goals they will be passionate about them, which greatly enhances their chances to succeed. The next action steps are always in lined with keeping the goal in mind. For example, the action steps might differ if someone wants to get into the restaurant business as compared to someone who wants to start his/her own clothing line. If the entrepreneur does not have a clear goal then he/she cannot formulate a successful business plan and strategy. While setting goals, entrepreneurs should set both long term and short term goals. For instance, short term goal of an entrepreneur might be to start a small restaurant specializing in serving a particular type of cuisine. The long term goal of the entrepreneur must help him/her to decide whether he/she wants to develop a chain of restaurants across locations specializing in serving the same type of cuisine or to transform the same restaurant into a multi-cuisine restaurant. The entrepreneur must also decide whether he/she wants to own the restaurant in the future or sell it at a handsome price earning larger profits and move on. The entrepreneur also needs to decide whether he/she plans to generate immediate higher revenues by setting the prices high during the initial stages or alternatively gain a loyal...
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...Intro to Business 7/25/13 Starting and Operating a New Business In chapter 3 we learned all about starting up a business. We learned that there are a lot of key factors that go into starting a business. We also know that it may not always turn out successful. I found an article on bizjournals.com that talks all about the economy and entrepreneurship. It talks about how it’s been in the past and how it’s been since 2012. An entrepreneur is a businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture. The article states that entrepreneurship is on the rise again, but there is still one thing holding a lot of Americans back and that is the risk that the business may fail. If their business fails, it’s a big deal because the entrepreneur then just lost all the time and money they had put into the business. The article says that one in three Americans feel that fear that it will fail but that’s has moved from one in every four from 2008. We learned that a Business plan (which is a document in which the entrepreneur summarizes his or her business strategy for the proposed new venture and how the strategy will be implemented) is key when starting up your own business. Without a clear written out plan chances are slim that your business will succeed. In the article it talks about how 69% of small businesses rely on friends and family members to help start up the business and get it running. So starting up and running...
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...Chapter 6 Vocabulary * Entrepreneurship—the creation of an innovative organization for the purpose of economic gain or growth under conditions of risk or uncertainty * Business Incubation—a business support process that accelerates the successful development of start-up and fledging companies by providing entrepreneurs with an array of targeted resources and services * Small Business—as one that is independently owned and operated and which is not dominant in its field of operation * Family Business—is one owned and managed mostly by people who are related by blood and/or marriage * Business Plan—describes the basic idea that is the foundation for the start-up and outlines how that idea can be turned into reality * Franchise—is a business operated by someone (the franchise) to whom a franchiser grants the right to market a good or service * Principle of Affordable Loss—the conscious determination of the amount of resources(money, time, and effort) entrepreneurs are willing to commit to an idea, which, in turn, influences the choice of strategies and methods needed to generate early revenues * Venture Capitalist—typically provides equity (ownership) financing for start-up and young, rapidly growing enterprises * Business Angel—is a private individual who invests directly in firms and receives an equity stake in return * Corporate Entrepreneurship—refers to the development, promotion, and implementation of innovative initiatives in established...
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...BOOTSTRAPPING FOR NEW VENTURES BOOTSTRAPPING FOR NEW VENTURES Antoinette Brown Metropolitan College of New York BOOTSTRAPPING FOR NEW VENTURES Abstract Bootstrapping, frequently regarded as a means to an end when there are no other options to finance a business. Entrepreneurs commonly use bootstrapping practices to help get new ventures up and running. For most small start ups, the process of securing financial backing is risky. When outside capital financing, venture capitalists, banks, and angel investors do not exist Bootstrapping is entrepreneurship in its purest form. It is the transformation of human capital into financial capital. The overwhelming majority of entrepreneurial companies financed through this “highly creative” process, which involves the use personal savings, credit-card debt, loans from friends and family, and formal sources of private equity (Freear, Sohl, and Wetzel, 1995). BOOTSTRAPPING FOR NEW VENTURES Bootstrapping Risks and Rewards When the investment banker says ‘NO’ the entrepreneur relies on himself or herself to raise capital by bootstrap financing. Bootstrappers have to be resourceful to a certain extent. The entrepreneur finds other creative ways to make-do or they do without. Bootstrappers consider strategies that can essentially reduce risks connected with their new ventures. By creating a business that make available products or services and needs little or no inventory, the entrepreneur can make the business more “boots...
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...Case report: Venture Capitalist evaluations of potential Venture opportunities What are the main requirements that these four VC look for when evaluating a new venture opportunity? These VCs have analyzed and come to realize that the most important factor when evaluating a new venture is that there is an opportunity in a large market which is growing. VCs always ask and want to know where a company will be in the next 3-5 years. Usually, for a company to be successfully starting-up, they will have a constant revenue of a minimum of 100 million with a market potential of going up to 500 million dollars. This is for company’s with non-software based companies. When it comes to software based companies, investment can be lower in size. The market size is very important for venture capitalists. They want the size of the markets to range between 500 million and 1 billion dollars to have enough potential to be interesting and worth taking the risk. Venture Capitalists also primarily look for a key factor that seperates a company and its product apart from others. These factors can range from an advance in technology/ design/ engineering to having a tool that people are used to, a list of consumer’s in specific sectors, but scientific related start-ups are usually kept away from because consumers in general wait for new creations to be tested and aware of them before generating big amounts of interest. Investors don’t only want a good idea with specific advantages to make...
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...Venture Capitalist ENGL106-Week 2 IP American Intercontinental University Kendrick Little April 22, 2012 Abstract This is a paper to define and explain what venture capitalism is as well as what venture capitalists do in their business. Venture Capitalist An venture capitalist a person who provides capital is for the financing of growing, a new upstarting or struggling businesses. Venture capitalists are the general partners in the venture capitalist process. The capital itself provides long term finances to help companies that are not as lucrative as other large companies and it just simply keeps the company from failing. Venture capital can primarily help with a lot of things such as buying out a company, save a struggling one, upstart a new or expand an existing one. The venture capitalist profit is dependent solely on the company they have invested in, if the company is showing good signs of turnaround or having a good amount of success then the venture capitalist has made a good investment and will benefit from the success financially. Venture capitalist usually works very closely with the partner in the venture capital firm which develops a partnership. The general partners of the company role serves as the managers of the firm and will also in some cases take on the role as advisor to the vc’s to which the funds are made. In the Unites States of America venture capital firms can be set up or structured as limitied liability companies, by doing so the...
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...Subject : Entrepreneurship and Business Planning (EntrepHRM) Definition of Entrepreneurship * The art of science of innovation and risk-taking for profit in business. * The practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. * It came from the root word “entrepreneur” * French word means “entreprendre” which means undertake Common Themes in Definitions of Entrepreneurship * Individual * Innovation * Organization Creation * Creating Value * Profit or not-to-profit * Growth * Uniqueness * Process Misconceptions about Entrepreneurship * Successful entrepreneurship needs only a great idea * Entrepreneurship is easy * Entrepreneurship is a risky gamble * Entrepreneurship is found only in small businesses * Entrepreneurial ventures and small businesses are the same thing. Men behind Entrepreneurship Eighteenth Century * Early 1700s – Richard Cantillon, coined the term entrepreneur who was then used to describe a “go-between”or a “between-taker” * Late 1700s – the risk bearing concept entrepreneur was expanded to include planning, supervising, organizing, and owning the factors of production. Nineteeth Century Early part of the century – Jean Baptiste Say proposed the difference between the profits of entrepreneurship from the profits of capital ownership. Late part of the century – distinction was made between those who supplied funds and earned interest...
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...Venture Capitalist ENGL106-Week 2 IP American Intercontinental University Kendrick Little April 22, 2012 Abstract This is a paper to define and explain what venture capitalism is as well as what venture capitalists do in their business. Venture Capitalist An venture capitalist a person who provides capital is for the financing of growing, a new upstarting or struggling businesses. Venture capitalists are the general partners in the venture capitalist process. The capital itself provides long term finances to help companies that are not as lucrative as other large companies and it just simply keeps the company from failing. Venture capital can primarily help with a lot of things such as buying out a company, save a struggling one, upstart a new or expand an existing one. The venture capitalist profit is dependent solely on the company they have invested in, if the company is showing good signs of turnaround or having a good amount of success then the venture capitalist has made a good investment and will benefit from the success financially. Venture capitalist usually works very closely with the partner in the venture capital firm which develops a partnership. The general partners of the company role serves as the managers of the firm and will also in some cases take on the role as advisor to the vc’s to which the funds are made. In the Unites States of America venture capital firms can be set up or structured as limitied liability companies, by doing so the...
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...Trend Setters Christina Zabala Bus/210 September 7, 2014 Kenneth Harrell Trend Setters The business plan that I found to examine is for Hair and Beauty Salons to offer a girls day of pampering. As any business, this is a highly competitive industry with diverse target markets. With such diversity on the market, with an ever changing industry, hair salons must have an aggressive and strategic approach to maintain its desirable ambition. The important thing to starting any business is having a business plan and goal to attain and succeed, this can include the background of the business organization or simply using a swot analysis. A swot analysis is a technique that focuses on identifying the internal strengths and weaknesses of the proposed new venture. It also focuses on the assessing external opportunities and threats that the competitive environment will promote or impede the success of the new venture. The hair and beauty salon I chose to write my thoughts and analysis on is called Trend Setters. This was the starting of a new adventure with great potential for Curley, Co, co-owner with husband Roller Comb, Jr. in MyTown, Texas. Trend Setters beauty salon is a “full service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere with an acceptable price/value relationship.” It will also maintain a friendly, fair, and creative work environment which respected...
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...Do not copy the answers wordforword; they must be in your own words. However, when it will strengthen your answer, you may quote or paraphrase relevant facts, ideas, and theories from your course reading materials; be sure to cite these references in an appropriate manner by using footnotes or endnotes. Part 1: The time to write a business plan is midway through the the stage of the entrepreneurial process titled "Developing Successful Business Ideas". It is a mistake to write a business plan too early. The business plan must be substantive enough and have sufficient details about the merits of the new venture to convince the reader that the new business is exciting and should receive support. Much of the detail is accumulated in the feasibility analysis stage of investigating the merits of a potential new venture. With this mind, please answer the following questions: 1. What are the two primary reasons for writing a business plan? A business plan is utilized by a firm internally, and also externally by investors, bankers, etc. Formulating a proper business plan will allow the firm’s founder(s) to produce an extensive feasibility analysis, and help define how the business plans to startup; along with its subsequent operation. Moreover, an eventual operation...
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...Business Organization Entrepreneurs should write a business plan to help bring the idea of a new business venture. There are also regulations that should be followed when starting a business. The role that regulatory requirements play in the process of entrepreneurship within the health care field is, it provides a standard, or structured frame, which offers the entrepreneur the means to operate according to the law. This paper will define sole proprietorship, partnership, corporations, and limited liability companies, discuss the advantages and disadvantages of each, and discuss which the most important appropriate form of ownership is for an aggressive entrepreneurial firm. Define A sole proprietorship is defined as a form of business organization involving one person, and the person and the business are essentially the same. Sole proprietorships are the most predominant form of business organization. Partnership is defined as a form of business organization where two or more people pool their skills, abilities, and resources to run a business. A limited partnership is a modified form of a general partnership. The major difference between the two is that a limited partnership includes two classes of owners: general partners and limited partners. There are no limits on the number of general or limited partners permitted in a limited partnership. Similar to a general partnership, the general partners are liable for the debts and obligations of the partnership, but the limited...
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...have entrepreneurs been impacted by the global economic crisis? Entrepreneurs have been hit since the downward slope of the economy. The banks have stopped and/or made the loan process more stringent to receive funds and to continue business. Some entrepreneurs found investors to receive funding where they were able to get around receiving loans from banks. · What excites you about being an entrepreneur? The exciting attributes of being an entrepreneur is setting your own standards. Creating jobs for the community and putting resources back in the community served. Leaving a legacy for the next generation and giving young people an opportunity to learn a new skill and concepts. · What concerns you about being an entrepreneur? The concerns revolve around not having the resources to continue running the business. The product or service rendered is no longer needed and not having the technology to advance. The business failing because of bad decisions that were made. 1. The global economic crisis has negatively impacted many entrepreneurs. Those who began their businesses during better times have found themselves in severe financial trouble. However, the downfall in the global economy has also presented a new opportunity like never before for individuals to become entrepreneurs. Although many businesses have failed as a result of the economic crisis, it has proven to be fertile ground for many. I believe the global economic crisis has forced...
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...Case Study: New Business Venture This case was borrowed from Kathy Schwalbe, Project Management 4th edition Part 1: Initiating Background Scenario: You and several of your friends have been working for corporations for over five years, but several of you have a desire to start your own business. You have decided that you are ready to pursue your idea of starting a music academy for children ages 3-16. You all enjoy creating music, and you saw the advantages that some children had from participating in special music programs beyond those available in schools. In particular, you see the need for music training in your area for children interested in voice, guitar, keyboard, and percussion so they can perform in their own bands. This New Business Venture Project would primarily involve you and three of your friends, who were all part of your high school band: 1. You are an excellent bass player, and you were the one who organized your band in high school and got the few paid gigs that you had. You can also play keyboard. You continue to play both instruments occasionally, but your full-time job and new spouse take up a lot of your time. Your current full-time job is working as a business analyst for a large retail store. Although your job is going well, you realize that you would be happier working in your own business and with something involving music. Your strengths are your creativity, organization, and analytical skills. Your spouse is employed full-time and supports...
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