Module III: Growth and Development of Entrepreneurial Ventures

• Identifying ‘paying customer’.

• Developing market understanding- Narrowing focus-end user profiling.
• Ideal persona-market segmentation, market sizing- marketing plan, pricing- strategy Rigor of another kind.
• Cliff-vesting schedule.
• Relative importance of operational involvement, Idea/Patent, driving force and capital infusion. Go live,
what proof of concept is needed- Minimum viable product – Name of product/service. Website, visiting
card, office space. Valuation and harvesting.
• Valuation methods. Term sheet Strategic sale. Negotiations – Management succession.

Dr. Shaifali Garg

Associate Professor
Amity University Madhya Pradesh
 Valuation methods :
• The Two Main Categories of Valuation Methods

• Absolute valuation models attempt to find the intrinsic or "true" value of

an investment based only on fundamentals. Looking at fundamentals
simply means you would only focus on such things as dividends, cash
flow, and the growth rate for a single company, and not worry about any
other companies.
• Relative valuation models, in contrast, operate by comparing
the company in question to other similar companies. These
methods involve calculating multiples and ratios, such as the
price-to-earnings multiple, and comparing them to the
multiples of similar companies.
Term sheet
Term sheet
 Negotiations – Management succession.

• Good negotiations contribute significantly to business success, as

they: help you build better relationships. deliver lasting, quality solutions
—rather than poor short-term solutions that do not satisfy the needs of
either party. help you avoid future problems and conflicts.

• Negotiation holds the key to getting ahead in the workplace, resolving

conflicts, and creating value in contracts. When disputes arise in
business and personal relationships, it's easy to avoid conflict in an effort
to save the relationship.
 Management succession Planning
• Process of preparing an organization for a transition in leadership.
• Succession planning is helpful when a management change occurs due to
unforeseen circumstances, such as the sudden death of a corporation's chief
executive officer (CEO).
• It provides a way to identify key roles, people with the right skills and positions
that may need filling in a short space of time. It also provides a way to cut the costs
of recruitment, enabling organizations to manage recruitment in-house.
 Role of Succession Management
• In the long term, succession planning strengthens the overall
capability of the organization by: Identifying critical
positions and highlighting potential vacancies; Selecting
key competencies and skills necessary for business
continuity; Focusing development of individuals to meet
future business needs.
• Management succession planning focuses vertically on the organization chart.
The goal is to prepare people for higher-level responsibility. There are many ways
to act on technical succession planning, but they require going beyond the familiar
methods of management succession planning .
Plan