The document outlines essential steps and challenges involved in launching a new venture, including choosing a business idea, conducting market research, and securing funding. Key challenges faced by entrepreneurs include a lack of planning, inadequate market demand, ineffective marketing, management of finances, and the importance of strong leadership. Practical actions for overcoming these challenges emphasize thorough preparation, continuous learning, and maintaining mental and physical health.

1. NEW VENTURE LAUNCH
Prepared By
Mrs. C. Ranganayaki, MBA, SLET, MPhil
Assistant Professor,
Sri Ramakrishna College of Arts & Science
Nava India, Coimbatore

2. Preparing for New Venture Launch
Choose the business idea
Conduct market research
Write the business plan
- Executive summary, Company overview, Business goals,
Market research, Internal organization chart, Services and
product offerings, Marketing and sales plan, Funding
requirements, Financial projections, Appendix
Secure funding for the business
- Personal savings, Business loans, Investors, Grants,
Crowdfunding
Pick the business location
……..Conti …

3. Preparing for New Venture Launch
Choose a business structure
- Sole Proprietorships, Partnerships, Corporations,
Limited Liability Companies (LLCs)
Choose the business name
Register the business
Get Central and state tax IDs
Apply for licenses and permits
Open a business bank account
Get business insurance
Prepare for launch

4. IDEA Generation

5. 4 Stages of Venture Life Cycle

6. Organisation & Operations

7. Product/ Service Development & Launch

8. Challenges of Starting a Business
1. Failure to plan
CHALLENGE:
With the excitement of a new business idea, it can be tempting
to launch without much forward-thinking
Yet a lack of planning can mean your business runs out of
cash or isn’t prepared for vital activities such as marketing
or dealing with suppliers
Business owners who plan and set themselves objectives are
more likely to succeed
ACTION:
Create a detailed business plan that covers areas such
as marketing, staffing, finance and sales
Regularly review and update your plan as the business develops

9. Challenges of Starting a Business
2. Lack of demand
CHALLENGE:
Understanding the market need for the product or service is a
crucial aspect of any business plan
Without enough people willing to buy the product or service,
the start-up won’t succeed, no matter how great the idea is
ACTION:
Spend time conducting market research to collect information
about potential customers
This will reveal the target market’s size and help to decide if
there is enough demand for the business idea

10. Challenges of Starting a Business
3. Ineffective marketing
CHALLENGE:
It can be easy to get caught up in the latest marketing trends
and spend lots of money on marketing techniques that end up
costing more than the sales they generate
ACTION:
Marketing should be effective.
Create a marketing that intends to reach customers
Most start-ups operate on small budgets, so need to
investigate different marketing methods
Explore low cost or even free ways to reach the target audience
Marketing funds to be invested wisely in most appropriate
tactics
Measure all the marketing activity & adapt the tactics if
necessary
Consider outsourcing the marketing to an expert if there is a
shortage of time & skills to do the job

11. Challenges of Starting a Business
4. Knowledge and skills gaps
CHALLENGE:
As a first-time entrepreneur, it’s unlikely to know everything
about running a business
A lack of knowledge can lead to avoidable mistakes that could
cost business money
Need to overcome enormous demands on time & energy for
setting up a business
ACTION:
Absorb as much information, particularly about the industry,
the customers being targeted and the competitors to be faced
Should also learn about critical areas such as finance,
marketing & sales; Read business advice websites, attend events,
join business groups & seek mentors
It takes a lot of work to build a business, so drive & energy are
needed
Being self-confident is a bonus

12. Challenges of Starting a Business
5. Financial management
CHALLENGE:
Poor financial planning is one of the biggest reasons start-ups
fail
If costs are greater than the revenue coming in, business won’t
succeed
ACTION:
Need to know all the costs start-up will incur & make sure that
products or services are priced appropriately to make a profit
Create a cash flow forecast that predicts sales as well as profit
and loss
Forecast money coming in and going out of the business

13. Challenges of Starting a Business
6. Securing funding
CHALLENGE:
One way to manage cash flow is by securing funding, but
raising finance can be challenging and it can be hard to know
where to get cash for business idea
ACTION:
Research the types of funding that are open to & gather the
information needed to share with investors, such as a business
plan & cash flow forecast
Government-backed Start Up Loans provides unsecured
funding at lower interest rates than from other lenders

14. Challenges of Starting a Business
7. Hiring the right people
CHALLENGE:
The people recruited as employees can greatly harm start-up’s
success
A negative employee can quickly damage team morale &
productivity
It’s tough having to fire someone but having the wrong people
in the start-up can be very disruptive
ACTION:
First hire is an important one, so spend time making sure to
find the right person
Look for people with good values & have valuable experience
Once with a team, create an open & transparent business
culture
Encourage clear & open communication with all staff, to
understand their strengths & weaknesses
This may also help to deal with staff issues if they arise

15. Challenges of Starting a Business
8. Leadership
CHALLENGE:
As the start-up grows and a team is build, employees will look
for strong leadership
ACTION:
Be clear about the business’ mission & vision
Communicate this clearly to all the employees
Employees should understand their objectives, the company’s
overall goals and be fully on board with the direction the
business is taking
Make sure staff remain motivated and be sure to look after
their wellbeing

16. Challenges of Starting a Business
9. Time management and productivity
CHALLENGE:
Managing time effectively is crucial when launching a start-up
New business owners have to wear so many hats that it can be easy to
get distracted and focus on the wrong areas
ACTION:
Planning is vital to keep business on track & focused on goals
Can easily end up working in the business rather than on the
business, so dedicate a set amount of time each week to reflect &
analyse areas that need attention
Consider using time-management apps to create lists of tasks to be
ticked off as and when done
For important task to complete, find a quiet area & turn off email,
app & messaging notifications
Outsourcing tasks is another way to manage the time better
Rather than building website or managing tax returns, handing it to
web designer or accountant can be efficient & cost-effective
Impact on your health

17. Challenges of Starting a Business
10. Impact on your health
CHALLENGE:
Running the business isn’t like having a 9 to 5 job
It can be all-absorbing & can take over the entire life
Need to take steps to safeguard mental & physical wellbeing
ACTION:
Make sure to get enough sleep & take regular time away from
work
Have breaks during the day, eat healthily & get regular exercise
Having a co-founder helps share the load, while
joining networking events and business groups can give access to
fellow business owners who face similar challenges