Download - Life cycle of an entrpreneural venture
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Life cycle of an entrepreneurial venture
Prepared By:
Nijaz N
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Life-cycle stages• What is born today, Must die tomorrow
1. The ‘IDEA’
2. Growth
3. Shakeout
4. Maturity
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Entrepreneurial Lifecycle Chart
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The ‘IDEA’ (Stage 1)
• INCUBATION CENTRE (e.g. Hi-Tech Products)
• Designing and Prototyping the product
• Test marketing
• Developing customer & supplier base
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Growth (Stage 2)
• Entrepreneur goes for expansion through:
1. Capturing Market Share
2. Differentiating
3. Expanding channels
4. Training and Expanding the core team
5. Acquiring resources
• Entrepreneur Focuses on:
1. Developing Operational Systems
2. Achieving Sales growth
3. Increasing market Share
4. VCs bring in important Value Additions
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Shakeout (Stage 3)
• Period of Continuous Growth
• Company is now big enough to be ‘noticed’
• Entrepreneur goes for:
1. Rapid growth and professionalization
2. Attempts for Market Leader Position
3. Broadens product/service lines &geographical coverage
• To carry on Continuous Growth:
1. New Venture Strategies
2. Continuous Innovations
• In a position to approach the Banks for Debt Funding
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Maturity (Stage 4)
• Entrepreneur’s Alternatives regarding future
1. Evolve the company
2. Partial/Full management buy-outs
• Founder’s Vision and Objectives
• May Cash-out to start another business