Assignment submitted by :

Sharaddha Shrestha Karmacharya

The New Venture

The new venture is an idea of product or service which has cost revenue and profit. But
all of this is possible only when new venture develops into business which is well
managed.

Entrepreneurial management is the new venture has four requirements

 Focus on the market.
 Financial foresight
 Building top management
 Founding entrepreneur a decision in respect to his/her own role area of work.

The need for market-

We usually hear people say that “We were doing fine until these other people came
and took our market away from us” or “We were doing al right but these other people
started selling to customers we had never ever heard of and all of a sudden they had
the market”.

So ,the new venture needs to start out with assumptions that its product or service
may find customers in the market no one thought of .If not so it will create market for
its competitors .New venture needs to work continuously and challenging itself in
respect to utility and value that its product contribute to customers.

Financial foresight-
The lack of financial foresight is the greatest threat to new venture .Sometimes
despite running a growing business with increasing profit the new venture may
collapse due to lack of cash ,inability to raise capital need, expansion and loss of
control with expense inventories and receivables. By the time control is to be done
the market have been lost and then hard to recapture it. But this can be prevented
through product quality,service,receivables,manaufacturing cost.

The healthier the venture grows the more the cash it needs. So the new venture needs
to plan the financial system it requires to manage growth. The growing business
should know a year financial expense .Financial foresight doesn’t require a great deal
of time but it does require a good deal of thought.

Building top management-

The product is of first rate the prospects are excellent yet the business cannot grow as
lack of top management. To avoid this top management team should build a team
before the venture. But small and growing cannot afford a top management team. In
small venture number of people do every thing as it comes along. The remedy is
simple that it does require the will on part of the founder to build a team rather than to
keep on running everything themselves. If one or two people at top management
believe that they alone must do everything then management crises occurs.

Where can I contribute?

Edward, who invented Polaroid glass and Polaroid camera, ran the company for 12 to
15 years as it began to grow fast land designed a top management team and put it in
place. As for himself he decided that he was not the right man for the top
management job. So land built himself a lab and established himself as a company
consulting director .He left the day to day activities to others to run. Founder-
entrepreneur who don’t change destroys and themselves too.

The need for outside advice-

The growing new venture doesn’t need people with whom he can discuss basic
decisions and to whom he listens. Such people are rarely found within the
enterprise .Some one who is not a part of the problem has to ask questions to review
decisions and above all to push constantly to have long term survival needs to the
new venture satisfying by building in the market focus, supplying financial foresight
and creating a top management team.