ENTREPRENEURSHIP

VENTURE LIFE CYCLE By: Elisante Ole Gabriel (Tanzania) egabriel@edenconsult.net, 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) Start-up Activities (iii) Growth of the Venture (iv) Stabilization (v) 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!