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The Entrepreneurial Lifecycle
The Entrepreneurial Lifecycle
Entrepreneurial
Lifecycle
Presented By: Kavit Doshi (Roll
No- 113)
Flow of presentation
Entrepreneurial Life Cycle
Entrepreneurial S-curve
Risk Model
Fit Model
Conclusion
Life-cycle stages
What is born today, Must die tomorrow
The ‘IDEA’
Growth
Shakeout
Maturity
Entrepreneurial Lifecycle Chart
Revenue
Maturit
y
Shakeou
t
Incubation
IPO /
acquisitions
Growth
Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
The ‘IDEA’ (Stage 1)
Not everyone with an idea starts his/her
business
Intent
Motivation
Mindset
Mull over the idea
INCUBATION CENTRE (e.g. Hi-Tech Products)to:
Designing and Prototyping the product
Test marketing
Developing customer & supplier base
Not all need INCUBATION MODEL
1st milestone (for Technology Based Products):
Development of the Prototype
Tested with few ‘alpha’ customers
2nd milestone:
Launching in a limited way
Next tranche of funding usually needed here
-
Entrepreneurial Lifecycle Chart
Revenue
Maturit
y
Shakeou
t
Incubation
IPO /
acquisitions
Growth
Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
Growth (Stage 2)
Entrepreneur goes for expansion through:
Capturing Market Share
Differentiating
Expanding channels
Training and Expanding the core team
Acquiring resources
Entrepreneur Focuses on:
Developing Operational Systems
Achieving Sales growth
Increasing market Share
VCs bring in important Value Additions
Entrepreneurial Lifecycle Chart
Revenue
Maturit
y
Shakeou
t
Incubation
IPO /
acquisitions
Growth
Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
Shakeout (Stage 3)
Period of Continuous Growth
Company is now big enough to be ‘noticed’
Entrepreneur goes for:
Rapid growth and professionalization
Attempts for Market Leader Position
Broadens product/service lines &
geographical coverage
To carry on Continuous Growth:
New Venture Strategies
Continuous Innovations
In a position to approach the Banks for Debt
Funding
Entrepreneurial Lifecycle Chart
Revenue
Maturit
y
Shakeou
t
Incubation
IPO /
acquisitions
Growth
Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
Maturity (Stage 4)
Entrepreneur’s Alternatives regarding future
Evolve the company
Partial/Full management buy-outs
Founder’s Vision and Objectives
May Cash-out to start another business
It is a Journey that is
Important
It is a journey of Self -
actualization and
realizing one ’ s full
Potential
Submitted to the:
International Council for
(5) Growth
Risk
(6) Public Financing
Risk
(3) Marketing
Risk
Time
(1) Developmental Risk
Entrepreneurial Fit
Models
May be helpful for entrepreneurs to manage
stage-related risks
Elements in the Four Fit model
Start-up Stage
Hi-growth Stage
Sustainability Stage
Global Enterprise
Each stage in the entrepreneurial process
involves three correlating and critical
elements that must fit together to achieve
success at that stage.
Fit model: Start-up Stage
Entrepreneur
Venture Context
Fit model: Hi-growth
Stage
Tools
Task Manager
Fit model: Sustainability
Stage
Product
Market Finance
Fit model: Global
Enterprise
Entrepreneur
Venture Context
S-curve, Risk and Fit Model
correlation
The Fit Models and entrepreneurial risks formulates a cycle along
the entrepreneurial process.
As the two approaches join, elements within the Start-up Fit Model
relate to the early stages of an entrepreneur’s journey.
Once the initial investment and the payback period has been
achieved, a firm may begin to experience rapid growth and
expansion.
Using the tools provided by the Hi-growth Fit Model, managers can
ensure that the organization has the potential to continue to
develop into a larger business venture.
Businesses at some point usually enter into a period of stagnation
(commonly following a period of rapid growth). During this
phase, managers of a firm may profit from an understanding of
the sustainability phase and its elements of product, market, and
finance to keep its operations viable.
This conceptual framework may allow entrepreneurs, corporate
leaders, and venture capitalists to better understand their own
businesses and forecast potential risks and opportunities,
thereby formulating plans to avoid obstacles, seize
opportunities, and achieve new Heights.
“ If I am in control ,
I’m probably moving
too slow !”
- Mario
Andretti
Thank You