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Venture setup


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Venture setup

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Venture setup

  2. 2. The venture setup process means the set of activities required to create an organization that is able to produce some work that is competitive in the market place.
  3. 3. Thus, setup is primarily organizational, where the key resources are assembled and campaigned in such a way that product/service positioning, differentiation, competitive advantage, comparative advantage, and, in sum, value creation, result.
  4. 4. The end result of the setup should be a competitive product or service to come into existence.
  5. 5. It is critical to ascertain-even test- the extend to which a product or service can be fashioned effectively. PRODUCTS: building, costing and testing a proto type SERVICE: developing clear service specification, and also testing them for cost within a target market. With this an entrepreneur should become aware about protecting the unique and competitive features of the product.
  6. 6. What must be organized /structured during the setup? Forming an advisory board • • Forming relationships with new venture employees • Establishing internal reporting relationships, policies, and procedures • Identifying and engaging legal and accounting services • Forming the venture entity/legal structure • Making make or buy decisions • Establishing relationship with suppliers • Establishing production or service delivery systems and or/facilities • Establishing banking relationships • Establishing an accounting and financial reporting system
  7. 7. • Obtaining needed licenses and insurance • Deciding location issues • Arranging helpful alliances (e.g., industry or buying groups) • Updating the business plan (to reflect the reality of new relationships)
  8. 8. A Student’s View of the Setup Process • Testing of the product or service until optimal product or service developed. • Legal protection for the product/process • Attract purchase orders, to ensure all competitive assumptions are valid
  9. 9. Step 1 :Establishing venture structure • Stage 1:Establishing the input structure • Stage 2: Establishing the operating structure • Stage 3:Determining output structure
  10. 10. Step 2: Entity and Premises. • Stage 1:Form entity • Stage 2:Premises
  11. 11. Thank u