Entrepreneurs should evaluate opportunities objectively to gain market insights and understand technical and financial requirements, legal issues, and what makes their venture unique. New ventures often fail due to a lack of evaluation, which can lead to pitfalls. The success of pre-startup and startup phases depends on factors like uniqueness, investment size, growth potential, and having available products and customers. Functional problems and internal/external issues also commonly cause new business failure.

1. Evaluation of Opportunities
Session 5
1

2. Why should entrepreneurs conduct
evaluation of opportunities?
Lack of objective evaluation
No real insight into the market and /or
lack of industry knowledge
Inadequate understanding of technical
requirement
2

3. Poor financial understanding
Lack of venture uniqueness (USP)
Ignorance of legal issues
3

4. What are the pitfalls in New Venture creation?
4

5. Phases of New Venture Development
Pre start-up
Start-up
Post Start-up
Growth
5

6. Critical factors for success in pre start-up and
start-up
The relative uniqueness of the venture
The relative investment size of the venture
The expected growth of sales and /or profits
as the venture moves through its start-up
phase
6

7. Critical factors for success in pre start-up
and start-up
The availability of products during the
pre start-up and start-up phases
The availability of customers during
the pre start-up and start-up phases
7

8. FAILURE IN BUSINESS
Why new businesses fail?
Functional Problems
Internal and External problems
8

9. Any questions?
9

10. THANKS
10