1. The life cycle of an entrepreneurial venture consists of four stages: idea, growth, shakeout, and maturity. 2. In the idea stage, entrepreneurs incubate their product concept, conduct prototyping and test marketing, and start building a customer and supplier base. 3. During growth, entrepreneurs focus on expanding their market share, channels, team, and resources in order to achieve sales growth and increase market share, often with help from venture capitalists.

1. Life cycle of an entrepreneurial
venture
Prepared By:
Nijaz N

2. Life-cycle stages
• What is born today, Must die tomorrow
1. The ‘IDEA’
2. Growth
3. Shakeout
4. Maturity

3. Entrepreneurial Lifecycle Chart

4. The ‘IDEA’ (Stage 1)
• INCUBATION CENTRE (e.g. Hi-Tech Products)
• Designing and Prototyping the product
• Test marketing
• Developing customer & supplier base

5. Growth (Stage 2)
• Entrepreneur goes for expansion through:
1. Capturing Market Share
2. Differentiating
3. Expanding channels
4. Training and Expanding the core team
5. Acquiring resources
• Entrepreneur Focuses on:
1. Developing Operational Systems
2. Achieving Sales growth
3. Increasing market Share
4. VCs bring in important Value Additions

6. Shakeout (Stage 3)
• Period of Continuous Growth
• Company is now big enough to be ‘noticed’
• Entrepreneur goes for:
1. Rapid growth and professionalization
2. Attempts for Market Leader Position
3. Broadens product/service lines &geographical coverage
• To carry on Continuous Growth:
1. New Venture Strategies
2. Continuous Innovations
• In a position to approach the Banks for Debt Funding

7. Maturity (Stage 4)
• Entrepreneur’s Alternatives regarding future
1. Evolve the company
2. Partial/Full management buy-outs
• Founder’s Vision and Objectives
• May Cash-out to start another business