|
An activity qualified as a
ventures by the very nature of the qualification is attended with
financial high risk. Hence, [business-]venture development planning
in every respect involves taking the development of a venture
through a high-risk evolution lifecycle but bringing the venture
ultimately into a self-sustaining operating and profitable business
entity. The evolution lifecycle of a business venture, however, are
empirically determined from the Corporate Lifecycle Curve to be
about six stages, three of which are development stages: Embryonic
Stage, The Start-up Stage, Growth Stage. So the entrepreneur engaged
in the development of a venture must be conversant with the
dynamics, characteristics, and demarcations of these stages and to
carefully plan for the effective and successful transversal of these stages by
the venture. These plans, of course, are necessarily
documented in the
Growth Tactics Business Plan, as well as it attendant Business
Plan Appendixes also and more correctly described as
Growth Tactics
Implementation Plan. Further, prior to entering into any of the
venture development stages, the entrepreneur must have and if not
should, first create
the legal entity that undertakes the tasks of the venture
development.
Embryonic Stage
The initial stage, more accurately the inception state of the
development of a venture, focusing on the initiation of the venture
is generally known as the [Venture] Embryonic Stage. This stage is
characterized by the focus on the development of the Product
Technology dimension of the
vision innovation
space. However, the actual object of the focus depends on the development-state of the
product on the Product Technology Dimension as noted in the
vision analysis.
Usually, the dimension development state may be one of two states:
The technology has been validated experimentally, or the technology
is simply conceptual. In the former state, the object of the focus
is on the optimization of the technology dimension; and in the
latter state, the object of the focus is on the experimental
validation of the dimension to be followed by the optimization.
Effectively, for those
ventures requiring the validation of of the product technology the
venture development begins with the Research and Development for the
vision product. Accordingly, the
founding of the venture
corporation will begin with the institution of the R&D division,
for development of the product technology. The tasks of such a
venture development plan therefore are very specifically targeted at
the proof of concept, in which experiments are first set up for
concepts tests, followed by the integration of the valid
concepts into a concept-product based on the architecture as defined
by the innovation inherent in the vision as determined through the
vision analysis. The concept-product again is subjected to a cycle
of use-concept validation test and architecture redesign, until a
design architecture is validated; or in the worst case the venture
is |
abandoned constituting a case of the high risk. The product of
result at the end of the concept validation is often called the base
technology, as it often serves as a template from which many
application-products are developed.
However, for those ventures
for which the product technology has been validated, as is also the
case just presented above, the venture development begins with the
optimization of the product technology. This state of evolution of
the venture addresses the specialization of the design of the
concept-product for targeting a market segment and issues of the
efficiency of the product technology as being use within the target
market.. The primary tasks at this time is the tweaking, material
selections, and the test-for and elimination of performance
bottle-necks in the design such that the overall efficiency of the
product becomes consistent with the objects of the Growth Strategic
Thrust along the product Technology Dimension.
Ease of product
production is usually the last of consideration of the stage, The
Embryonic Stage. The optimized design or architecture of the product
is now reviewed for manufacturability, or ease of production: Off
the shelf materials, and existing products for possible use as
components and adaptation of existing manufacturing systems are then
explored for use. So again, the product design is tweaked and
different readily available materials having comparable engineering
material-properties to the ones used in the optimized design are
sought and tested and selected and documented in the product design
specifications. Of course, during this period of manufacturability
design of the product, a small manufacturing process always get
built that invariably becomes the start-up initial production plant
and innovation
template for the Manufacturing Technology Dimension.
The Start-Up Stage
Every Venture Startup Stage is in general characterized by three
phases, although this is not obvious to most entrepreneurs. Each of
these phases also is characterized with its peculiarities and
pitfalls that must be adeptly circumvented or managed by the
entrepreneur to successfully transverse this stage. There can
be no over emphasizing that the three phases: Starting Phase,
Execution Phase and Penetration Phase;
need to be well-understood and adeptly managed
to successfully develop the venture. By and large, a business is simply the
profitably marketing of a product, and this phase of the Start-up
Stage is concerned with creating of the capability of being in
possession of the products to sell, creating of the business, and
the establishing of the procedures or business practices/models on
which to rest the operations of the business. Although this phase
seems to entail the making of several decisions, the phase is, by
and large, not difficult, but as with every building process, must
be thorough managed to set a good
foundation before moving forward. |
|
advertisement |
|
Coming soon!
details(in
popup window) |
The Execution Phase
of the Start-up Stage
generally focuses on the marketing of the company and products
within the initial target market segment of the Embryonic Stage,
creating repeat customers, and establishing the business critical mass
necessary for the venture to thrive, and is effectively is the
Market Entry Phase of the venture evolution. This Phase is the most critical phase of the
venture development stages, because this is the
phase in which most ventures fail, and has, to that end, been given
special presentation. This phase is the beginning of
the onset of the implementation of the
Growth Tactics
Implementation
Plan, hence the business is effectively put into a dynamic
state: Relative to the Starting Phase when the venture, in
essence, is in an inertial state, starting operations of the venture
in this phase gets
to put the venture into a dynamic state.
The Penetration Phase
generally focuses on the marketing of the company and products to
more customers within the market entry segments, and the
optimization and implementation of the template manufacturing
technology dimension as well as the expansion of
production capacity for the newer products to meet the anticipated
purchases of the prospective newer customers. The sale of the
products to more customers of the initial market segment, otherwise
the penetration into that initial market segment, gives this phase
it name of Penetration Phase. This phase usually ends with the
horizontal growth of the product, as the product is repeatedly
customized to meet the needs of different customers within the
initial market segment of market entry.
The Growth Stage
The Growth Stage
generally focuses on marketing of the company and products for
market entry into other target market-segments as identified in the
Growth Tactics Business Plan, expansion of product line consistent
with the set of products defined as first generation products of the
venture, and production capacity increases for the newer products
and variants of established products based the customization during
the Execution Phase of the Start-up Stage.
|
