ENTREPRENEURSHIP

VENTURE LIFE CYCLE By: Elisante Ole Gabriel (Tanzania) [email protected]

, www.olegabriel.com

+255-784-455-499

Key Issues about the Venture Cycle

 There are static and dynamic forces which need a special attention of the entrepreneur  Entrepreneur needs to manage for changes and not changes  The growth stage of the venture is more sophisticated with competition and dilemmas  At a certain stage, you need to decide whether to do more innovation or allow decline

Stages of the VC - Model

There are five key stages (just typical) (i) New Venture Development (ii) (iii) Start-up Activities Growth of the Venture (iv) (v) Stabilization Innovation or Decline

New venture dvt Stage

 Creativity and assessment  Resource base analysis  Networking including vertical marketing  Vision, Mission, Objectives, Strategies & Tactics

Start-up Stage

 Formal Business plan  Searching for capital (Analyse the risks)  Marketing research  Developing a working team  Identifying any core competencies for Competitive Advantage

Growth Stage

 Any modification on he operating strategy  Positioning and re-positioning  Knowing more details about he competitors (Survival of the fittest)

Stabilization Stage

 Increased competition  High bargaining power of customers  Saturation of the market  The entrepreneur needs to think where will the business be in the near future  It is a stage preceding a great dilemma: to innovate or exit the business

Finally

Innovation or Decline? stage

 Without innovation the clear option is ‘death’  Possibility of acquiring or being acquired  Might design new products for new markets (Diversification)

Conclusion

ALL STAGES ARE STRATEGIC POINTS OF THE VENTURE HENCE A NEED FOR SPECIFIC STRATEGIES FOR EVERY STAGE!