What is the term for the process of identifying and starting a new business venture?
An important aspect of successful business development is to follow a process of how you will assess a business idea or concept (project), decide whether to move forward with the project and build a business if it is decided to move forward. The five steps below help outline a simple process you can follow. The steps are not a rigid structure to follow. Rather they identify issues you need to address and when to address them. Show
If you do not follow a process, you will find yourself going in circles and revisiting the same issues over and over without making progress. In addition to wasting time, the frustration may cause you to make poor decisions that can haunt you later. Following the steps outlined here does not guarantee business success. However, it can greatly increase your chances of success. Step 1 – Initial Idea Exploration, Identification and AssessmentThe origination of a new business idea can come from a variety of sources. It may come from the board room of an existing business or a group of producers sitting around the kitchen table. Regardless of the setting, you may want to use the following approach to formulate the business concept. Anytime during Steps 1 and 2 you may decide that your idea is not viable, in which case you may want to abandon the idea.
Step 2 - Idea/Concept and Scenario/Model Deliberation and Assessment
Step 3 - Go/No-Go DecisionThis is the most critical step in the entire business development process. In a sense, it is the point of no return. Once you start down the path of creating a business, it is difficult to turn back. If you have unresolved doubts or reservations about the project, you should not proceed. That is why it is important to have an open, honest and thorough discussion when making this decision. You may find that there is division in your committee. Some members may want to move forward while others may want to end it. This is not uncommon. Each needs to take an honest look at the other side’s arguments. If the issues cannot be resolved, each side needs to go its own way with no bad feelings. At this point, the remaining members need to determine if they want to proceed with business creation. Commitment to the project is another important factor to consider before you proceed. Most beginners to business development greatly underestimate the time and effort required to start a business. A financial commitment by project members at this time (everyone throws some money in the pot) is an important sign of commitment to creating the business. This step involves making one of the three possible decisions listed below:
Step 4 – Business Plan Preparation and ImplementationIf you decide to proceed with creating a business, you will need to prepare a business plan. A business plan is an outline or blueprint of how you will create your business. If you conducted a feasibility study, it will provide some of the information needed for your business plan. Also, business planning often involves the use of consultants. However, don’t turn the process completely over to a consultant, you need to stay integrally involved in the planning process. Remember, it is your business. Although planning can involve considerable time and effort, it is the easiest part. Implementing the plan is much more difficult. Many prospective businesses experience problems or failure due to the improper implementation of their business plan. This step requires commitment and dedication. Unforeseen problems will emerge. Your persistence is critical. Implementing your business plan will include, but is not limited to:
Step 5 – Business OperationsNow that you have successfully started your value-added business, your work has just begun. Producer groups often forget that once the business is created, it takes constant attention for it to remain healthy and viable. Operating a business is very different than starting a business. It requires a different set of skills. So the people who create the business may not be the best people to manage the business. ConclusionThese are the five steps you will want to follow for taking an idea and making a viable business from it. These steps will not guarantee success. However, they will increase your odds of success. Also, you will make more efficient use of your time. Don Hofstrand, retired extension value added agriculture specialist, What is the process of identifying and starting a business venture?It is useful to break the entrepreneurial process into five phases: idea generation, opportunity evaluation, planning, company formation/launch and growth.
What are the processes of creating a new venture?Since a process view is considered, the authors critically review the existing models, and suggest the following stages: (i) ideation, opportunity (venture idea) recognition, (ii) shaping the entrepreneurial intention, (iii) preparation, (iv) networking, (v) entry, (vi) value creation, (vii) exit, and (viii) ...
What is a business venture called?To define business venture, know that it is a startup entity that has been created to generate a profit. Many refer to a business venture as a small business.
What is the process of identifying and starting business venture sourcing resources?Is a process of identifying and starting a business venture, sourcing and organizing the required resources and taking both the risks and rewards associated with the venture.
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