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Starting a Business: Key Strategies

The document discusses various topics relating to entrepreneurship and managing startups and new ventures. It defines entrepreneurship as initiating a business venture and organizing resources to assume financial and legal risks for potential profits. Successful entrepreneurs have traits like internal locus of control and tolerance for ambiguity. The document also discusses writing business plans, choosing legal structures like sole proprietorships and corporations, arranging financing through various sources, and the five stages of growing an entrepreneurial company. It emphasizes that managing a growing business requires planning, organizing, leading, and controlling functions.

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Sadaf Usman
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24 views20 pages

Starting a Business: Key Strategies

The document discusses various topics relating to entrepreneurship and managing startups and new ventures. It defines entrepreneurship as initiating a business venture and organizing resources to assume financial and legal risks for potential profits. Successful entrepreneurs have traits like internal locus of control and tolerance for ambiguity. The document also discusses writing business plans, choosing legal structures like sole proprietorships and corporations, arranging financing through various sources, and the five stages of growing an entrepreneurial company. It emphasizes that managing a growing business requires planning, organizing, leading, and controlling functions.

Uploaded by

Sadaf Usman
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Chapter – 6

Managing Start-Ups and New


Ventures
Course Instructor:
Sadaf Zahra Usman
Entrepreneurship

 The process of initiating a business venture


 Organizing necessary resources: risk/reward
 An entrepreneur engages in entrepreneurship
 Recognizes a valuable idea
• Assumes financial and legal risks
• Receives the business’s profits
 Successful entrepreneurs have many different motivations
Entrepreneurship Today

 Vital, dynamic, and increasingly important to the economy


 Generated 64% of new jobs over the last 15 years
 Half of the private-sector jobs Represent 98% of all firms
 Entrepreneurial companies are engines for creation and innovation
 Entrepreneurship is booming around the world
Description of Small Businesses

 Independently owned and operated, organized for profit but not


dominant in the field
 Size standards for small businesses are currently under revision –
• Meet change and shifting economy –
• A daunting task but will provide greater flexibility
Entrepreneurship activity around the world
Who Are Entrepreneurs

 More likely to be the first-born


 Parents are likely entrepreneurs
 Immigrants often start businesses
 Women are embracing entrepreneurship
 Minorities show a high rate of entrepreneurship
 As younger people become entrepreneurs due to the economy; entrepreneurship will
be increasingly diverse
Entrepreneurs Personality Traits
 High importance on being free to achieve
 Want to maximize their potential
 Six important traits:
 Internal Locus of Control
 High Energy Level
 Need to Achieve
 Self-Confidence
 Awareness of Passing Time
 Tolerance for Ambiguity
Social Entrepreneurship

Combines the creativity, business smarts, passion, and hard work of the
traditional entrepreneur with a mission to change the world for the better
Entrepreneurial Start-Up
Start with an idea
Write a business plan
Choose a legal structure
Arrange financing
Writing a Business Plan

1. Clear, compelling vision


2. Realistic financial projects
3. Profile target market
4. Profile the industry and competition
5. Introduce the management team
6. Well-written and formatted
7. Keep it short
8. Highlight critical risks
9. Outline sources of funding
10. Capture attention with a great summary
Choosing a Legal Structure

 Sole proprietorship – unincorporated business owned by an individual for profit - Unlimited


liability

 Partnership – an unincorporated business owned by two or more people  - - Possible


disagreements
- Unlimited liability

 Corporation – an artificial entity created by the state and existing apart from its owners
-Expensive and complex
Arranging Financing

 Debt Financing, money that must be repaid:


– Family and friends
– Bank loans/Finance companies
– Personal credit cards
– Wealthy individuals
– Angel financing
 Equity Financing is money invested by owners or those purchasing stock
– Venture capital firms
Starting an Online Business

 The Internet is aiding in the launch of new businesses and new ventures
 Starting an online business:

– Find a market niche


– Create a professional website
– Create a domain name
– Build online relationships
Five Stages of Growth of an Entrepreneurial Company
Managing A Growing Business

 Planning – The business plan should be treated as a living document – Recognize


the value of the web for operations

 Organizing – Delegate and decentralize as the business grows – Teams, policies,


and divisions will be required

 Leading – Motivate employees for cooperation and growth

 Controlling – Accounting records, budgets, statistical reports, and technology


Thank you

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