LEGAL CHALLENGES FOR ENTREPRENEURIAL
VENTURES COPYRIGHTS
PATENT
A patent provides the owner with
exclusive rights to hold, transfer, and license
the production and sale of the product or
process. Design patents last for 14 years, all
others last for 20 years.
SECURING A PATENT : BASIC RULES
❑Pursue patents that are broad, are
commercially significant, and offer a strong
position.
❑Prepare a patent plan in detail.
❑Have your patent relate to your original
action plan.
❑Establish an infringement budget.
❑Evaluate the patent plan strategically.
SECURING PATENT : THE APPLICATION
1. Specification the text of a patent and may
include any accompanying illustrations
❑ An introduction explaining why the
invention will be useful
❑ A description of prior art considered similar
to invention
❑Summary of the essence of the
technology/invention its differences from prior
art and requisite features
❑ Description of the invention
❑ Examples and/or experimental results
CLAIMS
Claims a series of short paragraphs,
each of which identifies a particular feature or
combination of features that is protected by the
patent.
INTELLECTUAL PROPERTY PROTECTION;
A copyright provides exclusive rights to
creative individuals for the protection of their
literary or artistic productions.
The owner of this copy right may;
1. Reproduce the work
2. Prepare derivative works base on it
3. Distribute copies of the work by sale or
otherwise
4. Perform the work publicly
5. Display the work publicly
UNDERSTANDING COPYRIGHT PROTECTION
❑ The material must be in a tangible form so it
can be communicated or reproduced
❑ Author’s own work and thus the product of
his or her skill or judgement.
❑ Formal registration of a copyright is with the
copyright office of the library of congress.
❑ Fair use” doctrine of copyrights—
reproduction of a copyrighted work for
purposes of criticism, comment, news
reporting, teaching, scholarship, or research
INTELLECTUAL PROPERTY PROTECTION
TRADEMARKS
A trademark is a distinctive name, mark,
symbol, or motto identified with a company’s
product(s) and registered at the Patent and
Trademark Office.
AVOIDING TRADEMARK PITFALLS
Trademark registration is very
expensive, but infringement is even more
expensive. Five rules to avoid pitfalls in selecting
a trademark:
❑ Never choose without trademark search.
❑ Trust lawyer’s judgment.
❑ Seek a coined or fanciful mark
❑ Select a logotype or name that is highly
suggestive of the product.
❑ Avoid abbreviations and acronyms.
THE ENTREPRENEURIAL PROCESS
Parody or Trademark Infringement
Parody is sometimes used as a defense against
trademark infringement.
FORMS OF INTELLECTUAL PROPERTY
Patent- A grant from the government that gives
an inventor exclusive rights to an invention.
Copyright- An intangible property right granted
to authors and originators of a literary work.
Trademarks-Any distinctive word, name,
symbol, or device image or appearance).
Trade Secrets- Any informative including
formulas, patterns, programs devices,
techniques, and processes).
Three primary legal forms of organization are
the sole proprietorship, the partnership, and
the corporation.
1. Sole Proprietorships-
A sole proprietorship is a business that is
owned and operated by one person.
2. PARTNERSHIPS-
A partnership, as defined by the Revised
Uniform Partnership Act (RUPA), is an
association of two or more persons who act as
co-owners of a business for profit.
3. CORPORATION –
According to Supreme Court Justice John
Marshall (1819),A corporation is a separate
legal entity apart from the individuals who own
it
THE LIMITED LIABILITY PARTNERSHIP (LLP) –
is a relatively new form of partnership
that allows professionals the tax benefits of a
partnership while avoiding personal liability for
the mal. practice of other partners.
PRINCIPAL CHARACTERISTICS OF LIMITED
PARTNERSHIPS
1. A limited partnership or LLIP may be created
only in accordance with a statute
2. A limited peach type or LLLP has two types of
partners: general portrait and limited partners.
3.All partners, limited and general, share the
profits of the business.
4.Each limited partner has as liability limited to
his capital contribution to the business. Each
general partner of limited partnership has
unlimited liability for the obligations of the
business.
5. Each general partner has a right to manage
the business, and he or she is an agent of the
limited partnership or LLLP.
6. General partners, as agents, are fiduciaries of
the business. Limited partners are not
fiduciaries
7. A partner's rights in a limited partnership or
LLLP are not freely transferable. A transferee of
a general or limited partnership interest in not a
partner, but is entitled only to the profits. e
transferring partner's share of capital and
8. The death or other withdrawal of a partner
does not dissolve a limited partnership or LLLP,
unless there is no surviving general partner.
9. Usually, a limited partnership or LLLP is taxed
like a partnership.
FINAL THOUGHTS ON LEGAL FORMS
 An entrepreneur always should seek Marketing challenges for entrepreneurial
professional legal advice to avoid ventures
misunderstandings, mistakes, and, of course,
Marketing research – involves the gathering of
added expenses. The average entrepreneur information about a particular market, followed
encounters many diverse problems and by analysis of that information.
stumbling blocks in venture formation.
Process in Developing Marketing Research
Bankruptcy occurs when a venture's
financial obligations are greater than its assets. a. Defining the Research Purpose and objectives
b. Gathering secondary data
Following are several ways to foresee
impending failure: c. Gathering primary data
(1) New competition enters the market, d. Quantitative versus Qualitative Marketing
Research
(2) other firms seem to be selling products that
are a generation ahead, e. Interpreting and Reporting Information

(3) the research and development budget is f. Marketing Research Questions

proportionately less than the competition's, and Inhibitors to marketing research
(4) retailers always seem to be overstocked. a. Cost
THE BANKRUPTCY ACT b. Complexity
The Bankruptcy Act is a federal law that c. Strategic Decisions
provides for specific procedures to handle
d. Irrelevancy
insolvent
Social media marketing
■Debtors those who are unable to pay debts as
they become due. The initial act of 1912 was The use of mobile apps, social media,
completely revised in 1978; significant advertising networks, video streaming,
amendments were added in 1984, 1986, 1994, broadband, flash and optimization.
and the most substantial revision in 2005. The mosr common social media marketing tools
The purposes of the Bankruptcy Act are include;
• Twitter
(1) to ensure that the property of the debtor is
distributed fairly to the creditors, • Blogs
(2) to protect creditors from having debtors • LinkedIn
unreasonably diminish their assets, and
• Facebook
(3) to protect debtors from extreme demands
• Pinterest
by creditors.
• Instagram
• Youtube
•
3 important aspects to consider with social Common mobile computing devices
media marketing
• Cellphones
1. Create
• PDAs
2. Enable
• Smartphones
3. Encourage
• Tablet PCs
Key distinction of social media marketing
• Netbooks
In the traditional marketing approach,
emphasizing the 4ps (product, price, place and Andrea Kaplan recommends the following;
promotion). • Integrate
Several other aspects that distinguish social • Individualize
media marketing from the traditional
marketing. • Involve

1. Control versus contributions • Initiate

2. Trust building Entrepreneurial tactics in market research

3. How social media messages are Researchers Minet Schindehutte,

consumed Michael H. Morris, and Leyland F. Pitt
recommend a number of possible avenues for
Developing a social media marketing plan entrepreneurs
A social media marketing plan details an These tactics include:
organization’s social media goals and the
actions necessary to achieve them. • Guerilla Marketing

Some critical steps to keep in mind • Insights in ordinary patterns

• Listen • Technological Tools

• Identify • Customer Observation

• Categorize • Web-based Surveys

• Appraise • Focus groups

• Implement • Lead User Research

• Collaborate • Blog Monitoring

• Contribute • Archival Research

• Convert The components of effective marketing

• Monitor The effective marketing is based on 3 key

elements:
Mobile marketing
• Marketing Philosophy
Mobile computing is the use of portable
wireless devices to connect to the internet. • Market Segmentation
• Consumer Behavior
 • Marketing Philosophy 3. Early majority
3 distinct types of marketing philosophies exist 4. Late majority
among new ventures:
5. Laggards
1. Production driven- based on the belief
you must produce efficiently and worry about The entrepreneurial process
sales later. Techniques to use to assess competition
2. Sales driven- focuses on personal selling and avoid paying a high price market research
and advertising to persuade customers to buy firm to collect information.
the company’s output. 1. Networking
3. Consumer driven- relies on research to 2. Related products
discover consumer preferences, desire and
needs before production actually begin. 3. Value chain

3 major factors influence the choice of 4. Companies with related competencies

marketing philosophy 5. Internet
1. Competitive Pressure 6. Benchmarks from web analytics
2. Entrepreneurs Background vendors.

3. Short-term Focus Analysis of the way the consumer view the

Market segmentation
The process of identifying a specific set
of characteristics that differentiate one group of
customers from the rest.
ventures product or services that provides data.
Entrepreneurs should be aware of five major
consumer classifications.
1. Convenience goods

2 major variables 2. Shopping goods

• Demographic Variable 3. Specialty goods

• Benefit variable 4. Unsought products

CONSUMER BEHAVIOR 5. New products

Designed by many types and patterns of DEVELOPING A MARKET PLAN

consumer characteristics. A market plan is the process of
-Entrepreneurs can focus their attention on only determining a clear, comprehensive approach
2 considerations. to the creation of customers.

1. Personal Characteristics Elements for developing marketing plan

2. Psychological Characteristics. • Current marketing research

Traditionally, some marketing experts have tied • Current sales analysis

these characteristics to five types of consumers; • Marketing information system
1. Innovators • Sales forecasting
2. Early adopters

Current marketing research
Areas to consider for current research be
effective
• The company’s major strengths and
weaknesses.
• Market profile
• Current and best customers
• Potential customers
• Competition
• Outside factors
• Legal changes
Current sales analysis
Entrepreneur needs to continually
review the methods employed for sales and
distribution in relation to the market research
that has been conducted.
MARKETING INFORMATION SYSTEM
A system that compiles and organizes data
relating to cost, revenue, and profit from the
customer base.
Sales Forecasting
The process of projecting future sales
through historical sales figures and the
application of statistical techniques.
Step 1. Appraise marketing strengths and
weaknesses
Step 2. Develop marketing objectives
Step 3. Develop product/service strategies
Step 4. Develop marketing strategies
Step 5. Determine a pricing structure
PRICING STRATEGIES
One final marketing issue that needs to
be addressed.
VIEWS OF PRICING
Pricing can be viewed as value, variable,
variety, visible, and virtual.
PRODUCT LIFE CYCLE PRICING
Pricing procedures differ depending on
the nature of the venture: retail,
manufacturing, or service.
Pricing in the social media age
Today’s social media start-ups are finding
unique ways of generating revenue from the
very beginning.
• Freemuim Model Offers
• Affiliate Model
• Subscription Model
• Virtual Goods Model

Evaluation • Advertising Model

The final critical in the marketing planning

process.
Final Considerations for Entrepreneurs
To be effective, these plans must be based on
the venture’s specific goals.
5 step program designed to help entrepreneurs
create a structured approach to developing a
market plan:
 An analysis of the cash availability and
cash needs of the business that shows the
effects of a company’s operating, investing, and
Financial Preparation for Entrepreneurial financing activities on its cash balance.
Ventures
*How much cash did the firm generate from
The Importance of Financial Informationfor operations?
Entrepreneurs
*How did the firm finance fixed capital
Significant Information for Financial expenditures?
Management
*How much new debt did the firm add?
 The importance of ratio analysis in
*Was cash from operations sufficient to finance
planning.
fixed asset purchases?
 Techniques and uses of projected
financial statements. The use of a cash budget may be the best
 Techniques and approaches for approach for an entrepreneur starting up a
designing a cash-flow schedule venture.
 Techniques and approaches for
Preparing Financial Budgets One of the most
evaluating the capital budget
powerful tools the entrepreneur can use in
BALANCE SHEET planning financial operations.

represents the financial condition of a Operating Budget

company at a certain date. It details the items
-A statement of estimated income and
the company owns (assets) and the amount the
expenses over a specified period
company owes (liabilities).
Cash-Flow Budget
It also shows the net worth of the company and
its liquidity. Assets = Liabilities + Owners’ Equity A statement of estimated cash receipts and
expenditures over a specified period.
INCOME STATEMENT
Capital Budget
Commonly referred to as the P&L
(profit and loss) statement from activities of the The plan for expenditures on assets with
firm. returns expected to last beyond one year.

Provides the results of the firm’s operations. THE OPERATING BUDGET

Income Statement Categories
Sales Forecasting Creating an operating budget
 Revenues: gross sales for the period through the preparation of the sales forecast.
 Expenses: Costs of producing goods or
A sales forecast is an estimate of expected sales
services
revenue within a specific time frame, such as
 Net Income: The excess (deficit) of
quarterly, monthly, or yearly
revenues over expenses (profit or loss)
OPERATING EXPENSE
STATEMENT OF CASH FLOW
Three key concepts on developing an expense
budget:
Fixed cost - is one that does not change in
response to changes in activity for a given
period of time. (Examples: Rent, Depreciation,
Salaries)
Variable cost - is one that change in the same
direction as, and in direct proportion to, change
in operating activity. (Example: Direct
labor/materials, and sales commission)
Mixed cost - are a blend of fixed and variable
cost. (Example: Utilities (Electricity and Water
consumption)
The Cash-FlowBudget
Provides an overview of the cash inflows and
outflows during the period. -By pinpointing cash
problems in advance, management can make
the necessary financing arrangements.
Steps in preparation ofthe cash-flow budget
Step 1: Identification and timing of cash inflows.
3 Sources in cash inflows
a. Cash sales
b. Cash payments received on account
c. Loan proceeds
Step 2: Minimum cash balance
Pro Forma Statements  Are projections of a
firm’s financial position over a future period
(pro forma income statement) or on a future
date (pro forma balance sheet).
Capital Budgeting is a process that businesses
use to evaluate potential major products, or
investment.
Capital Budgeting Which of several mutually
exclusive projects should be selected?
How many projects, in total, should be
selected?
CAPITAL BUDGETING (CONT’D) PAYBACK
METHOD NET PRESENT VALUE (NPV) METHOD
INTERNAL RATE OF RETURN (IRR METHOD)
PAYBACK METHOD
Considers the time required to “pay
back”(recapture) the original investment. Any
project that requires a longer period than the
maximum time frame will be rejected, and
projects that fall within the time frame will be
accepted.
Why it is used?
•PAYBACK METHOD
• Very simple to use compared to other
methods.
• Projects with a faster payback period
normally have more favorable short-term
effects on earnings.
• If a firm is short on cash, it may prefer to use
the payback method because it provides a
faster return of funds. “The premise that a
dollar today is worth more than a dollar in the
future.”
•NET PRESENT VALUE (NPV) METHOD
A technique that help to maximize
some of the short coming of payback method
by recognizing future cash flow beyond payback
period. Analysis is a form of intrinsic valuation
and is used extensively across finance and
accounting for determining the value of a
business, investment security, capital project,
new venture, cost reduction program, and
anything that involves cash flow.
“The premise that a dollar today is worth more
than a dollar in the future.”
•NET PRESENT VALUE (NPV) METHOD
2 NPV is used to help determine how much an
investment, project, or any series of cash flows
is worth.
This procedure is referred to as discounting the
future cash flow.
INTERNAL RATE OF RETURN (IRR METHOD)
3 Similar to the NPV method, the future cash
flows are discounted at a RATE that makes the
NPV of the project equal to zero. Measures the
BREAK-EVEN ANALYSIS –
In todays, competitive marketplace,
enetrepreneur need relevant info. that enable
them to price their products and services
competitively and still be able to earn a fair
profit.
The intersection of these two lines (where total
revenue are equal to the total cost) is the firm
break-even point. Two additional COST may
also be plotted ( Variable cost and Fixed cost).
The entrepreneurs can visualizes the
relationship the firm cost structure
Handling Questionable Costs -This technique
calculates break-even point under alternative
This have the ff. decision rules:
if expected sales exceed the higher break-even
point, then the product should be profitable,
regardless of the other break-even point.

Break event analysis will supplies this
information.
BREAK-EVEN POINT COMPUTATION –
Break-even analysis is a technique that
is commonly used to assess expected product
profitability.
-It helps to determine how many units
must be sold to break even particular selling
prices.
Contribution Margin Approach –
if expected sales do not exceed the lower
break-even point, then the product should be
unprofitable. If the expected sales is in between
of the two breakeven point is need further
investigation of the questionable cost behavior
need.
Break-Even Analysis Ratios are useful for:
Vertical Analysis Anticipating conditions
and as a starting point for planning actions.
Showing relationships among financial
statement (FS) accounts.

A common approach to break-even The application of ratio analysis to identify

analysis is the contribution margin approach.
-Contribution margin is the difference
between the selling price and the variable cost
per unit,.
financial strengths and weaknesses. Look at
financial statements and ratios over time for
positive and negative trends.

-Contribution margin it is the amount

per unit that is contributed to covering all other
cost.

-Break-even point occur where income

is equals to expenses.

Break-Even Analysis Graphic Approach

This approach, entrepreneurs graph at leats two
numbers: (Total revenue and total cost).

DEVELOPING AN EFFECTIVE BUSINESS PLAN
PITFALLS TO AVOID IN THE VENTURE OF
PLANNING PROCESS
PITFALL 1: No Realistic Goal
PITFALL 2: Failure to Anticipate Roadblocks
PITFALL 3: No Commitment or Dedication
PITFALL 4: Lack of Demonstrated Experience
(Business or Technical)
PITFALL 5: No Market Niche (Segment)
BUSINESS MODEL CANVAS: INITIATING THE
VENTURE FORMATION PROCESS
The business model canvas is a
structured brainstorming tool for entrepreneur
to use to define and understand the strategic
focus and the questions that need to answered
for the nine business building block.
9 ESSENTIAL COMPONENTS OF BUSINESS
MODEL CANVAS:
Value Proposition- The product and the service
that create value for specific customer segment.
1. Customer segment- The different groups of
people or entities that the venture aims to
reach and serve.
2. Channels- ways the venture communicates
with and reaches its customers segments
ESSENTIAL COMPONENTS OF BUSINESS MODEL
CANVAS:
4. Customer Relationship- The types of
relationship establishes with specific customer
segments.
5. Revenue Streams- The cash a new venture
proposes to generate from the particular
customer niche.
6. Key Activities- These are the most important
elements that a venture must do to make its
business model work.
7. Key Resources- The most important assets
required to make the business model work and
create value for the customer.
8. Key Patterns- The network of supplier and
partners that optimize operations and reduce
risks to make the business model work.
9. Cost Structure- The most significant costs
incurred to operate the business model.
Characteristics of cost structures include:
1.Fixed Costs
2.Variable Costs
3.Economies of Scales
4.Economies of Scope
WHAT IS BUSINESS PLAN?
Describes the current status, expected
needs, and projected results of the new
business.
Covers the project, marketing, research and
development, manufacturing, management,
critical risks, financing, and milestones or a
timetable.
BENEFITS OF A BUSINESS PLAN
A business plan may help an
entrepreneur avoid a project doomed to failure.
FOR ENTREPRENEUR: FOR THE FINANCIAL
RESOURCES: Details the market potential and
plans for securing a share of that market. Shows
how the ventures intends to service debt or
provide an adequate return on equity.
DEVELOPING A WEEL-CONCEIVED BUSINESS
PLAN
Numerous professionals may be
involved with reading the business plan such as
venture capitalists, bankers, investors, potential
large customers, lawyers, consultants, and
suppliers.
FIVE MINNUTE READING:
1. Determine the characteristics of the venture
and its industry.
2. Determine the financial structure of the plan
(amount of debt or equity investment
required).
3. Read the latest balance sheet ( to determine
liquidity, net worth, and debt/equity)
4. Determine the quality of entrepreneurs in the
venture (sometimes the most important step).
5. Establish the unique feature in the venture
(find out what is different).
6. Read over the entire plan lightly (this is when
the entire package is paged through for a casual
look at graphs, charts, exhibits, and other plan
components).
PUTTING THE PACKAGE TOGETHER
1.Appearance
2. Length
3. The cover and Title page
4. The executive summary
5. The table of contents
• Keep the plan respectively short
• Organize and package the plan appropriately
• Orient the plan toward the future
• Avoid exaggeration
GUIDELINES TO REMEMBER QUESTION TO BE
ANSWERED
• Is your plan organized okay facts leap out at
the reader?
• Is your product/service and business mission
clearance simple?
• Are you focus on the right things?
• Who is your customer?
• Why will customers buy how much better is
your product/service?
• Do you have a competitive advantage?
• Do you have a favorable cause structure?
• Can the management team build a business?
• How much money do you need?
• How does your investor get a cash return?
ELEMENTS OF BUSINESS PLAN
Executive Summary
Not more than three pages. This is the
most crucial part of your plan because you must
captures the reader’s interest. What, how, why,
where, and so on must be summarized.
Complete this part before you have finished the
business plan.
Business Description
The name of your business. A
background of the industry with history of your
company (if any) should be covered here.
Marketing Segment Market Niche and Market
share Homogeneous group with
common characteristics that is all people who
have need for the newly proposed product or
service.
Research, Design, and Development Segment
Operations Segment
This segment always should begin by
describing the location of the new venture. The
chosen site should be appropriate in terms of
labor availability, wage rate, proximity to
suppliers, customers and community supports.
Financial Segment
This segment identifies the key
personnel, their positions, their responsibilities,
and the career experiences that qualify them
for those particular roles.
Management Segment
The financial segment of a business plan
must demonstrate the potential viability of the
undertaking.
Three basic financial must be prepared in this
part of the plan; the pro forma balance, income
statement, and the cash flow statement.
Critical-risk Segment
Discuss potential risk before investors
point them out-e.g., Price cutting by
competitors. Any potentially unfavorable
industry-wide trends. Design or manufacturing
costs.in excess of estimates.
Harvest Strategy Segment Milestone Schedule
Segment Develop
a timetable or chart to demonstrate
when each phase of the venture is to be
completed. This shows the relationship of
events and provides a deadline
accomplishment.
Appendix and/or Bibliography Segment
The final segment is not mandatory, but
it allows for additional documentation that is
not appropriate in the main parts of the plan.
Diagrams, Blueprints, financial data, vitae of
management team members , and any
bibliographical information that supports the
other segments of the plan are example of
material that can be included information.
UPDATING THE BUSINESS PLAN REASONS TO
UPDATE THE BUSINESS PLAN
Financial changes Launch of a new
product or service Additional financing Changes
in the market New management team Reflect
the new reaity
Presentation of the Business Plan:
The Pitch Know the outline thoroughly. Use key
words that help recall examples, visual aids, or
other details.
Rehearse the presentation to get the feed of it’s
length.
Be familiar with any equipment to be used in
the presentation-use your own laptop.
The day before, practice the complete
presentation using all visual aids and
equipment.
Suggestion for Presentation Focus on the “pain”
for which your venture will be the solution.
Demonstration the reachable market.
Explain the business model. Tout management
team.
Explain your metrics Motivate the audience.
Why you and why now?
WHAT TO EXPECT
Entrepreneurs should realize that the audience
reviewing their business plan and listening to
their pitch is usually cynical and sometimes
antagonistic.
No matter how good you think your venture
plan is, an investor is not going to look at it and
say “this is the greatest business plan I’ve ever
seen!”.
 Entrepreneurs must be prepared to handle 4. Evaluate the performance of the strategy.
questions from the evaluators and to learn from
5. Take follow-up action through continuous
their criticism, they should never feel defeated
feedback.
but rather should make a commitment to
improving the business plan for future review. THE LACK OF STRATEGIC PLANNING

STRATEGIC ENTREPRENEURIAL GROWTH
STRATEGIC PLANNING AND EMERGING FIRMS
An entrepreneur’s planning will need
to shift from an informal to a formal systematic
style for other reasons.
• The degree of uncertainty with which the
venture is attempting to become established
and to grow.
• The strength of the competition
• The amount and type of experience the
entrepreneur has may be a factor in deciding
the extent of formal planning.
THE NATURE OF STRATEGIC PLANNING
is the formulation of long-range plans
for the effective management of environmental
opportunities and threats in light of a venture’s
strengths and weaknesses.
is used to match the conditions of an ever-
changing market and competitive structure with
a firm’s continuously evolving resources,
capabilities, and core competencies.
FIVE BASICS STEPS MUST BE FOLLOWED IN
STRATEGIC PLANNING
1. Examine the internal and external
environments of the venture (SWOT).
2. Formulate the venture’s long-range and
short-range strategies. (Mission, objectives,
strategies, policies).
3. Implement the strategic plan (programs,
budgets, procedures).
Five reasons for the lack of strategic planning
2. Lack of expertise /skills
3. Time Scarcity
4. Lack of knowledge
5. Lack of trust and Openness
6. Perception of high cos
THE VALUE OF STRATEGIC PLANNING
Does strategic planning pay off?
Research shows it does. A number of
studies have focused on the impact of planning
on entrepreneurial firms. These studies support
the contention that strategic planning is of
value to a venture.
All of the research indicates that emerging firms
that engage in strategic planning are more
effective than those that do not.
Most important, the studies emphasize the
significance of the planning process, rather than
merely the plans, as a key to successful
performance.
FATAL VISIONS IN STRATEGIC PLANNING
Researcher Michael E. Porter has noted Five
fatal mistakes entrepreneurs continually fall
prey to in their attempt to implement a
strategy.
Fatal Vision- Misunderstanding industry
attractiveness
Fatal Vission- No real competitive advantage
Fatal Vision- Pursuing an unattainable
competitive position
Fatal Vision - Compromising strategy for
growth
Fatal Vision - Failure to explicitly communicate
the venture's strategy to employees
STRATEGIC POSITIONING: THE
ENTREPRENEURIALEDGE
Strategic competition can be thought of
as the process of perceiving new positions that
attract customers from established positions or
draw new customers into the market.
AN ENTREPRENEURIAL STRATEGY MATRIX
MODEL
• Matthew C. Sonfield and Robert N. Lussier
developed an Entrepreneurial strategy matrix
that measures risk and innovation. For the
purpose of this matrix, innovation is defined as
creation something new and different.
1. Initial expansion and accumulation of
resources.
2. Rationalization of the of resources.
3. Expansion into a new markets to assure the
continent use of resources.
4. Development of new structures to ensure
continuing mobilization of resources.
NEWVENTUREDEVELOPMENT
The second stage emcompasses the work
needed tp create for capital, carry out
marketing activities and develop an effective
entrepreneurial team.
START –UP ACTIVITIES
Thid target often requires major
changes in entrepreneurial strategies .
GROWING FIVE MAJOR STAGES BUSINESS
STABILIZATION
This stages are result of both market
condition and the entrepreneur efforts.
INNOVATION OR DECLINE FIRMS
that fails to innovate will die,
Financially successful enterprise often will
try to aquire the innovative firms, there by
ensuring growth.
KEY FACTORS DURING THE GROWTH STAGE
Entrepreneurs need to understand the four key
factors:
1.Control - Growth create problems in
command and control.
2. Responsibility - As the company grows, the
distinction between authority and responsibility
become apparent.
3. Tolerance of Failure - Even if a venture
avoided the initial start-up pitfalls and has
expanded the growth stage, it is still important
to maintain a tolerance of failure.
KEYFACTORS DURING THE GROWTH STAGE
Three Distinct Forms of Failure:
• Moral Failure - This form of failure of a
violation of internal trust.
• Personal Failure - This form of failure is
brought about by a lack of skill or application
• Uncontrollable Failure - This form of failure is
caused by external factors and is the most
difficult to prepare for or deal with.
4.Change - Planning, operations, and
implementation are all subject to continual
changes as the venture move through the
growth stage and beyond.
KEYELEMENTS FOR AN ENTREPRENEURIAL
FIRM
-It is important that the entrepreneurs
to establish a business that remains flexible
beyond start-up.
SHARE THE ENTREPRENEUR'S VISION opportunities and grow your business in a
sustainable manner.
• INCREASE THE PERCEPTION OF OPPORTUNITY
• INSTITUTIONALIZED CHANGE AS THE UNIQUE MANAGERIAL CONCERNS OF
VENTURE'S GOAL GROWING VENTURES

• INSTILL THE DESIRE TO BE INNOVATIVE COMMUNITY PRESSURES - If you say or do

things that go against socially accepted norms,
KEYELEMENTS FOR AN ENTREPRENEURIAL FIRM
the Internet and other means of rapid
• A Reward System communication allow the community to rise
against you.
• An environment that allows for Failure
CONTINUOS LEARNING - also known as
• Flexible Operations constant learning, is the concept of always
• The Development Of Venture Teams expanding your knowledge to gain new skills
and expertise. For businesses,
UNIQUE MANAGERIAL CONCERNS OF
GROWING VENTURES ACHIEVING ENTREPRENEURIAL LEADERSHIP IN
THE MILLENNIUM
Emerging business differ in many ways from
larger, more structured business. Entrepreneurial leadership is the ability
to help people in an influential way to have an
Several unique managerial concerns involve increased capacity to recognize and exploit
growing businesses in particular. entrepreneurial opportunity.
The Distinctiveness of Size - The distinction of Through having this the team could easily
smallness gives emerging businesses certain identify and manage obstacles by:
disadvantages.
✓strengthening their competencies through
A small size limits a company's ability to peer observation
geographically extend throughout a region or
state, the firm must be recognize and service its ✓ team-based experiential learning
available market.
✓self-regulated learning
UNIQUE MANAGERIAL CONCERNS OF
GROWING VENTURES ✓team learning

THE ONE-PERSON-BAND SYNDROME- The one

person-band syndrome exists when an
entrepreneur fails to hand over responsibility
and the appropriate decision making authority
to his employees as the organization grows in
size.
THE ENDDD..
TIME MANAGEMENT - Time management is
important for busy companies so they can
prioritize all their work tasks and achieve their
goals faster. When you better manage your
time, you'll be able to take on new