EMT 301

LESSON 6
STAFFING, MARKETING AND THE NEW
VENTURE
 STAFFING, MARKETING AND THE NEW
VENTURE
What is a venture? A venture is a commercial undertaking
characterised by risk of loss as well as opportunity for profit.

What is Staffing? Staffing can be defined as the selection

and training of individuals for specific job functions, and
charging them with associated responsibilities.
Staffing if the process of filling positions in the organisation
with adequate and qualified personnel.

What is marketing? Marketing can be defined as the

satisfying needs and wants through an exchange process.
 STAFFING FOR A NEW VENTURE
One of the best ways to strike the proper balance
is to develop a comprehensive staffing plan for
your business and the decision to hire your
employee should not be taken lightly. The
following step will help you make smart decisions
about how and when to staff your business
 Step One: Evaluate Your Needs

Once you determine your needs, develop a

written job description. If you only have one
employee, he/she may have to pinch-hit in
several different areas. Make sure that the job
description accurately reflects your
expectations.
 Step Two: Evaluate Your Capacity

Employees need more than just paychecks—

they’ll need training, guidance, equipment,
tools, and space to work. Can your business
afford to provide everything your employee will
need to be effective? Is there adequate space
for a new employee to work?
 Step Three: Weigh Your Options
Adding person power to your business doesn’t have to mean hiring a full-time
employee. Consider the following alternatives Ease into an employment
relationship by hiring someone on a part-time basis. This way, you’ll be able to
determine how much help you really need and how much payroll expense you
can afford. 

Hire someone on a temporary basis through a staffing agency. This arrangement

will enable you to “try out” a potential employee before you commit. 

If meeting the needs of a customer requires activities outside of your area of

expertise, consider subcontracting that portion of the work to another business.

Industrial Training can be a rewarding way to meet your staffing needs. An intern
will work for your business in return for his/her school’s credit and a small
stipend.
Step Four: Spread the Word
The tool(s) you choose should complement the
type of position you are seeking to fill. For
example, if you’re looking for someone to fill a
clerical or retail sales position, hanging out a
“help wanted” sign and placing an advert in the
local paper will probably be effective. If you’re
looking for someone with specialized expertise,
however, consider a well-placed advert in a trade
publication or calling an employment agency. 
Step five: Do Your Homework

Before you make a hiring decision, always meet

with a candidate in person to conduct an
interview. Develop a list of questions to be
addressed in each interview, and always interview
more than one candidate. Ask for references and
follow through by investigating those references.
Remember, you don’t have to select someone
from your initial pool of applicants. If none of the
candidates fit the bill, keep looking.
 Characteristics of New Ventures and their Environment

1. Newness of the organization

Stinchcombe (1965) argues that new organizations face substantial liabilities of newness. These

liabilities lead to higher failure rates of new firms compared to older ones.

2.Small size of the organization

New ventures usually start off as relatively small organization with only a handful of employees and

very limited financial resources.

3. Uncertainty and turbulence

Liabilities of newness and smallness are exacerbated by problems of uncertainty.

Uncertainty is both an unavoidable aspect of entrepreneurship and of a valuable opportunity in that

it serves as a basis for asymmetrical perceptions among actors.

 Distinct Challenges for Marketing in New
Ventures

Each of the above-mentioned characteristics of

new ventures and their environment contributes
to the challenges that young firms encounter in
their marketing efforts. These key challenges can
be outlined as follows
 Newness of the organization
First and foremost, new ventures are unknown
entities to potential customers and other
parties, which often translate into a lack of trust
in their abilities and offerings. Hence, young
firms are challenged to win customers before
such firms even have a company identity, brand
name, or track record.
 Small size of the organization
Marketing in new ventures faces severe
resource limitations in terms of finances and
personnel. In general, this limits the options and
the scope of strategies new ventures can
pursue. E.g., since they are unable to finance
large-scale market development efforts, they
might have to target small market niches and
thus miss potential first-mover advantages in the
wider segment.
 Uncertainty and turbulence

Due to the high degree of uncertainty and turbulence

surrounding innovative solutions in new markets, the
predictability of market data is restricted and only
limited information is available for marketing
planning. E.g., there is little information on the nature
and level of demand for new offerings.
 Further reading material
Olawale A. (2014)- Strategic Entrepreneurship
Development, University Press Plc.