Opportunity Identification

Pitfalls In selecting new Venture

1. Lack Of objective evaluation 2. No real insight into the market 3. Inadequate understanding of technical requirement 4. Poor financial understanding 5. Lack of venture uniqueness 6. Ignorance of legal issues

Critical Factors for new venture development

Uniqueness Investment Growth of sales Product availability Customer availability

Critical Factors for new venture development

A new venture goes through three specific phase pre stage- begins with the idea and ends when the doors are opened for business. Start Up phase-commences with the initiation of sales activity and delivery of products and services and ends when business Post start- lasts till the venture is terminated or the surviving organizational entity no longer controlled by an entrepreneur

 Uniqueness Investment Growth of sales Product availability Customer availability

Why new venture fail

Product /Market problem
Poor timing Product designing problem Inappropriate distribution strategy Unclear business definition Overreliance on one customer

The Financial Difficulty

Initial undercapitalization Assuming debt too early

 Venture capital relationship problem. Managerial problems Concept of a team approach-nepotism focused on weakness rather than strength, Human resource problem-Inflated owner ego, employee related concern,