...Introduction to Entrepreneurship Search Funds: Buying a Business Finding an Idea Find a Team Legal Issues Business Plans Funding Managing and Growing the Venture HBS Entrepreneurs Services for Students Evaluating New Venture Opportunities Conversations with Venture Capitalists What makes for the ideal entrepreneurial opportunity? To learn about the frameworks firms use when evaluating potential venture opportunities, Mike Roberts, executive director of the Arthur Rock Center for Entrepreneurship, and HBS senior research associate Lauren Barley recently interviewed four venture capitalists from leading firms in Silicon Valley. The following are excerpts from their responses. Russell Siegelman (MBA '89) Partner, Kleiner Perkins Caufield & Byers The most important requirement is a large market opportunity in a fast-growing sector. We like a company to have a $100 million to $300 million revenue stream within five years. This means that the market potential has to be at least $500 million-or more, eventually-and that the company needs to achieve at least a 25 percent market share. The second factor involves a competitive edge that is long lasting. It is usually an engineering challenge that is tough enough to give the company an edge, resulting in several years lead or longer, if we're lucky. We look for a tough problem that hasn't been solved before. The solution can't be so straightforward that someone can look at the blackboard and say, "I know how to...
Words: 1509 - Pages: 7
...Running head: 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...
Words: 950 - Pages: 4
...92 Harvard Business Review May 2010 HBR.ORG Clark G. Gilbert (cgilbert@ deseretdigital.com) is the president and CEO of Deseret Digital Media and was formerly a professor at Harvard Business School. Matthew J. Eyring (meyring@innosight.com) is the president of Innosight, a strategic innovation consulting and investment company outside Boston. Beating the Odds When You Launch a New Venture Smart entrepreneurs aren’t cowboys—they’re methodical managers of risk. by Clark G. Gilbert and Matthew J. Eyring ILLUSTRATION: BRUCIE ROSCH F or nearly 20 years the case study used to introduce Harvard Business School’s Entrepreneurial Management course has been Howard Stevenson’s “R&R.” It looks at Bob Reiss, an entrepreneur who launches a venture in the board-game industry. Students are encouraged to explore all the production, development, distribution, and marketing costs associated with the new venture. A cursory reading of the case suggests that it’s a lesson in the rewards that come to an entrepreneur who is willing to take on an enormous amount of risk. Reiss capitalizes on what he correctly foresees is an ephemeral opportunity to ride the coattails of the Trivial Pursuit craze before me-too products flood the market. But a more careful analysis reveals something else entirely. At every turn, Reiss seeks to reduce his risks before making any significant financial investments or operational commitments. For example, he presells a sizable number of units to ensure...
Words: 4235 - Pages: 17
...Harvard Business Review May 2010 Beating the Odds When You Launch a New Venture by Clark G. Gilbert and Matthew J. Eyring Smart entrepreneurs aren’t cowboys—they’re methodical managers of risk. For nearly 20 years the case study used to introduce Harvard Business School’s Entrepreneurial Management course has been Howard Stevenson’s “R&R.” It looks at Bob Reiss, an entrepreneur who launches a venture in the board-game industry. Students are encouraged to explore all the production, development, distribution, and marketing costs associated with the new venture. A cursory reading of the case suggests that it’s a lesson in the rewards that come to an entrepreneur who is willing to take on an enormous amount of risk. Reiss capitalizes on what he correctly foresees is an ephemeral opportunity to ride the coattails of the Trivial Pursuit craze before me-too products flood the market. But a more careful analysis reveals something else entirely. At every turn, Reiss seeks to reduce his risks before making any significant financial investments or operational commitments. For example, he presells a sizable number of units to ensure cash flow. As students come to understand, Reiss actually limits his at-risk capital to the cost of the game design and the prototype. Rather than the high-risk, high-reward seeker he initially seems, Reiss proves to be a manager who constantly identifies risks and finds creative ways to remove them. Tackling the Right Risks First (Located at the end of...
Words: 3885 - Pages: 16
...There are all types of learning. The one I prefer to do the most is Active learning. To me active learning means being engaged in conversations on topics that are being taught by an instructor. When you ask a question your taking action towards learning something new. To me that is a very obvious way of active learning. When you read or research a topic this is another way of active learning. When your present in a classroom but don’t ask any questions. I would consider that passive learning because you’re not engaging in conversation but you’re listening to your instructors lecture. I would consider myself a passive learner. In the past I was never really able to absorb the information given by an instructor until my sophomore year in high school. This is the time in which I actively began engaging in conversations with my peers on subjects covered in the course material. I was also able to put my pride aside and actively engage my instructors by raising my hand in class and asking questions when I didn’t understand something in the course. The best way to be an active learner in my opinion is to attend every class and write down things the teacher is covering from his weekly lessons. If you don’t understand something raise your hand and ask your question. If you don’t like to ask questions in class wright down your questions and then email the instructor later voicing your concerns. Moving forward with your material is always a good way to keep yourself on course...
Words: 451 - Pages: 2
...| AIB student ID number: | A001324635 | | | Student name: | Patries Ramkaran | | | Course name: | MBA in Entrepreneurial Management | | | Subject name: | New Venture Creation | | | Subject facilitator: | Priscilla Bahaw | | | Teaching Centre: | School of Higher Education (SHEL) | | | No. of pages: | 27 | | | Word count: | 2491 | | | DECLARATION | I, the above named student, confirm that by submitting, or causing the attached assignment to be submitted, to AIB, I have not plagiarised any other person’s work in this assignment and except where appropriately acknowledged, this assignment is my own work, has been expressed in my own words, and has not previously been submitted for assessment. | ASSESSMENT SHEET | Student name: | | | | Course name: | | | | Subject name: | | | | Assessor/marker: | | | | COMMENTS | Principles learnt (for example, number and understanding of principles referred to, their influence on the structure of this paper, number and correct citations of references, use of appropriate jargon) | | /4 | | | Application of principles. That is, the analysis and evaluation of the example problem based on the principles, including the final recommendations and their justification | | | /8 | | | How well the example problem was described, including the extent and depth of information (including the data) about it that was accessed | | | /4 | | | Structure...
Words: 3672 - Pages: 15
...NEW VENTURE CREATION CASE STUDY: OPPORTUNITY RECOGNITION AT OPHL QUESTION 1 Why did the recognizing a new business opportunity was important for OPHL? It is very crucial for OPHL in recognizing new business opportunity especially when the company is realize the business turning to be unusual, thus effected the profit. In order OPHL to sustain in the industry, the company must seek a new business opportunity which promises a huge profit for short and long term, thus create values to the stakeholders. OPHL is facing turbulent business environment and it requires the company to be more aggressive and creative to ensure the sustainability of OPHL. The importance of recognizing new business opportunity has mentioned by Peter Drucker in his theories of Business Diamond Model and Managerial Levers. OPHL also needs to think out of the box in searching new opportunity to be competitive in the market as mentioned by Michael Porter in his Diamond Model. In that theory, Porter says that there are six broad factors; factor conditions, demand conditions, related and supporting industries, firm strategy, structure and rivalry, government and chance, which has become a key tools that interact with each other to create conditions where innovation and improved competitiveness occurs. QUESTION 2 What is the dilemma faced by Mrs. Rahmah? What are the main opportunities identified by OPHL? A recession led to slowdown in economic activity and due to the economic downturn, the...
Words: 2800 - Pages: 12
...1.0. Introduction: Now-a-days business is the most profitable form of earnings. Opening a business is both exciting and risky. A person might face different obstacles while opening a new business. To open a business in a particular area there are different things to consider. 1.1. Origin of report: Project report is a practical part of academic studies. This is a reflection of academic knowledge throw practical work experience. Thus this project report aims to reflect the professional view of a real world work environment. This report is assigned by our honorable faculty Mr. Md. Tarikul Islam, as a requirement of our business communication course, which is a core course to the completion of our undergraduate program. Because of his proper guidance we are able to complete this report in a very well manner and short time. 1.2. Purpose of the report: The main purpose of the report is to fulfill the mandatory requirement for the Business communication course. Other purposes are: • To prepare an overview of introducing a new venture • Analyze different aspects related to the venture • Identify the opportunities for doing a business • Develop ideas to build up a business 1.3. Scope of the report: We have conducted surveys within the people of that area. This is a huge opportunity for us. Because we have surveyed our original...
Words: 1873 - Pages: 8
...New Venture Creation Individual Assignment Table of Contents 1.0 Introduction 2 2.0 Business concept statement 2 2.1 Reasons for operating business in Hangzhou, China 2 2.2 Business market analysis 3 2.3 Business Strategy 3 2.4 Concerns or Uncertainty about the Business 4 3.0 Financial Aspects 5 4.0 Conclusion 6 5.0 Reference 7 1.0 Introduction This essay is going to discuss my thought about creating a new venture in Hangzhou, China. From a personal point of view, a successful business should be well planned for a long period of time, since we are still novel to the complex society. In order to maximise the possibility of turning my business concept into reality, there are a number of elements needed to take into consideration seriously. This essay will mainly focus on stating my business idea, analysing the business market, showing my business concerns, adopting a business strategy, and finding funding for the business operation. 2.0 Business concept statement My business concept is about teaching children English in a more enjoyable way. This English training will be operated in a playground and the target market is children from 3-6 years old. The business will be located in Hangzhou, China which is a home city of mine. Some more details will be discussed in the following part of the essay. 2.1 Reasons for operating business in Hangzhou, China In terms of the bigger part of the business operation location, we are going to run our business...
Words: 2831 - Pages: 12
...Nicholas Johnson ETR 315 Financing New Ventures Professor Gilles Business Valuation Report The Business Valuation report will discuss how these companies compare and which companies are performing. The report will give and in depth analysis for the financial forecasting and the business valuation models. The four companies Alex and Ani, I.T. source, Mastero technologies, and Veteran Corps of America. The first company Alex an Ani cost of capital and the weighted average for the cost of equity and the cost of debt for each corporation. The cost of capital rate should be used as the discount rate for present value (PV) of the free cash flow (FCF) and terminal value (TV) of the business.The business valuation calculation for Alex an Ani show that the company is profitable and estimates for the company include the present value of the free cash flow (FCF) from the 5-year revenue and earnings forecast and the present value of the terminal value (TV) based on the free cash flow (FCF) in the fifth year using the cost of capital. The combination of present values from discounted cash flows and discounted terminal values would represent the total business values for each of the four privately-held corporation.While this valuation was generated considering as many company, industry and location specific details as available, the value presented in this report is an automated estimation of the assets and liabilities. Some events and circumstances that might impact the overall...
Words: 1014 - Pages: 5
...lawsuit (p. 12). The amount of risk Shania is willing to assume should help guide her decision on whether or not to establish sole proprietorship. When an individual is uncomfortable with risk, they often consider partnership as an alternative. According to Hopson and Hopson (2014), a general partnership may exist if a business owner has shared profits with another (p.43). While profits are shared between the partners in a general partnership, the partners are also liable financially for the business debts (Blair and Marcum, 2015, p.251). For Shania, a general partnership would reduce risk and profit, but it would also reduce her flexibility in setting the overall business strategy. “The most important consideration owners of new ventures often...
Words: 1310 - Pages: 6
...Executive Summary The business plan outlined in this article is a “fitness” club that will offer a variety of different exercise techniques in order to appease its members. We feel this market is very profitable because of the nearly 58 million people who go to gyms and personal fitness centers around the United States which brings in over $22 billion in revenue annually. There are also over 66,000 people living in Washington County, which ranks 3rd in population which has only increased in the state of Maryland over the last few years. According to USA Today, Hagerstown has an obesity rate of 38.3 percent which ranks 3rd in the United States. Fitness club memberships in the United States have also increased every year since 1987 and a strong market makes a strong business. Our gym, “Your Fitness Center” will offer its members quality services and benefits that no other club can offer. In most gyms, the top three most profitable programs/services are personal training, specialized classes, and beverages/protein bars. Our gym will provide all of these services and thus increase our productivity. Most gyms do not have a large selection of protein drinks; our goal is to provide products that encourage improved health such as healthy beverages. We will build a large complex that will include top brand fitness machines and weights personal training programs, different fitness rooms for Zumba and Pilates, along with extreme cycling classes and a theater room. Day care is even provided...
Words: 3829 - Pages: 16
...New Venteru Management 1B Motivation Motivation employees is an important skills for supervisors manaagaers and business owners to supervisors, managers, and business owners to have when developing motivation plan, it is important to reorganise the individual different among employees and realize that not all motivation techniques will work for everyone. Each employee must be evaluated to determine what motivates them the most, employees are motivated in different methods. Jp nismos cars cc. Jp , is a company sell new and old vehicles. It situated in th Main Road, Oshikango. Jp is a Company owned by Mohammed Ali from India. J.p employed 50 workers in different department including managers and supervisors. As we know that each work to be perfomed well they have to be motivated. J.p nismos cars, also use different methods of motivation. These methods are: employee motivation through flextime, through job rotation, through job enlargement,through job enlichment, through team- working and empowerment, employee motivation through job sharing, employeemotivation through involvement and employee motivation through valuable – pay. Employees in J.p perform different tasks such as office admistration, mechanisim, car washers and cleaners and sales advisors. Jp nismos normally open its do at 8 oclock in the moning and closs its at 5 oclock including one hour four lunch time. All employee must be at work berofe eight oclock. Employee who want to go out must sign premision ti go out...
Words: 437 - Pages: 2
...are shaped by forces in the society including new consumer capabilities and new organization capabilities. Technology is empowering consumers and organization in ways that are not possible in the past. As such, marketing goes beyond attracting customers, it is involving beating competitors, connecting with customers to build value satisfaction and long-term loyalty (Kottler, 2012). Hence for the IT business venture, marketing starts from internal, taking care that employee are well trained to be able to deliver value, sharing information and that will add value to the customer, ensuring that our services offering reaches our target audience and deploying projects based on best practice to delight customers, and ensuring a tightly integrated after sales support in all our projects. Below represents marketing plan for the organization. Management The role of management team is very critical to sustainability of any business venture. Ability to build and keep teams together is critical to the success of any organization whether old or new. Having the right people in the right role aligning with the vision of the organization, is the hallmark of high performing the organization (Cardon, M.S., 2008). Management team play a great role in building and keeping teams together and ensuring that they perform optimally for the common goal of all stakeholders, customers, suppliers, employee, shareholders etc. Managing a new business venture is quite different from managing a large establish...
Words: 1455 - Pages: 6
...New Venture Final Report Submitted: Friday, November 15, 2012 Instructor Name: Imad Kamal Lab ID #: D07 Student Names: Logan Chalkley Nikita Galaninskiy Rui Lin Zeeshan Mahmood Audrey Tulio 1 Table of Contents Executive Summary ........................................................................................................................ 2 Program for Itinerary Engineering .................................................................................................. 4 Porter’s Five Forces ........................................................................................................................ 5 PEST Analysis .............................................................................................................................. 12 Financial Feasibility and Market Potential ................................................................................... 14 Exhibits ......................................................................................................................................... 16 Exhibit A: ................................................................................................................................................ 16 Exhibit B: ................................................................................................................................................ 20 2 Executive Summary In 2009, the University of Waterloo (UW) welcomed 24,377 students (University of Waterloo...
Words: 5075 - Pages: 21
