Financial Incentives Most community governments are faced with cash needs that go well beyond the tax tolerance level of their citizens; consequently, they work diligently with economic development agencies to attract new business – and the accompanying tax revenues – into the community. One of the ways they attract […]
Management
Finding The Appropriate Business Site If a new venture cannot operate as a virtual organization, a significant part of the organizing process is finding an appropriate site for doing business. Most people are familiar with the three key factors for determining value in home sites: “location, location, location”. Similarly, the […]
Forming a Network of Strategic Alliances in a Virtual World Another way in which virtual companies become more flexible and responsive is by forming strategic alliances, or teams of businesses, to share resources and reduce costs. These alliances are more than sources of capability for the entrepreneurial venture; they are […]
In the early 1990s, the virtual organization was a relatively new concept and certainly had yet to benefit from the Internet, which didn’t affect the business sector in any significant way until 1885. The term virtual organization was borrowed from the science of virtual reality, which enables a person to […]
One of the most eye-opening experiences an entrepreneur can have is identifying all the processes (activities, tasks, etc,) that occur in the business. Even more revealing of how the business works is a process map or flow chart that traces how information flows through the business. The reason for this […]
There is probably no single best organizational structure for all types of ventures in all situations. Rather, the entrepreneur must find the best fit, given the existing contextual factors (environment, technology, market), design factors (strategy, and models), and structural factors (complexity, formalization). A misalignment or misfit among these factors could […]
It is not uncommon, particularly if the plan is being used to seek capital, for the entrepreneur to be asked to do a presentation of the business concept, highlighting the key points of the business plan. Usually this occurs after the potential funders have read the executive summary and perhaps […]
The following are errors that entrepreneurs commonly make when developing a business plan, particularly when the audience is made of investors. 1. Projecting rapid growth of a venture beyond the capabilities of the founding team. This is a common problem. The new venture shows potential for rapid increasing demand, sales […]
Bankers/lenders are primarily interested in a company’s margins and cash flow projections, because they concerned about how their loans or credit lines to the business will be repaid. The margins indicate how much room there is for error between the cost to produce the product (or deliver the service) and […]
Anyone investing in a new venture has four principal concerns: Rate of growth Return on investment (RoI) Degree of risk Protection Investors are generally betting that the value of their ownership interest in the business will increase over time at a rate greater than another type of investment or of […]
