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
 Module III

Growth and Development of Entrepreneurial Ventures

 Introduction :
• The process of improving
entrepreneurial skills and knowledge
among individuals with the help of
providing well-organized training and
developing supporting institutions is
called entrepreneurial growth or
development.
 Entrepreneurial Ventures
• An entrepreneurial venture is when an
organization pursues opportunities and
new practices in order to have growth
and profitability as its main goals.
• Examples : Business life coach (BADA
BUSINESS ) , Vlogging or Blogging,
Graphic designer, Copywriting and editing
services etc .
 Identifying ‘paying customer ‘
• Profile on this perfect customer.
• Which consist : Write down everything
about them like: age, where they work,
what is their social standing, their cultural
interests.
• After that : 1.Know your product, services .
• 2.Determine your Goals.
• 3.Analyze past interactions.
• 4. Build a customer profile .
Developing Market Understanding
• Expanding the potential market through
new users .
• New geographic segments,
• New demographic segments,
• New institutional segments ,
• New psychographic segments.
 Market Development
• Market development is a strategic step
taken by a company to develop the
existing market rather than looking for
a new market.

• The company looks for new buyers to

pitch the product to a different segment of
consumers in an effort to increase sales.
Narrowing focus –end user profiling :

• Case study : Johnson and Johnson baby

product .
• End user profiling involves gaining an
understanding and building a profile of the
final users of the system in terms of age,
gender, socio economic background,
(dis)abilities, knowledge, skill set,
frequency, interest and any other relevant
information.
Ideal persona – Market
Segmentation .
• Customer segments as high-level
categorical classifications of groups of
people
• While personas illuminate specific
details that speak to a type of person -
their experiences, goals, or
motivations. Examples : Olay total
effects , Titan Raga watches .
Ideal persona and Market Segment

• Segments help to forecast market interest for

a product or service,
• While personas help to understand the
emotional and behavioral triggers behind
individual customers within that market.
• Child going to a new school for the first time wants others to
think that he is popular, cool, and unafraid. He dresses in
fashionable clothing, and he walks in with confidence and
says hello to everyone. He is presenting a brave persona of a
likable and popular kid.
 Market sizing
• Market sizing is defined as estimating the
number of buyers of a particular product, or
users of a service.
• Like : relative newness of mobile money,
sizing the potential market is a necessary and
valuable exercise for a MFSP(Micro finance
skills project ) in the early stages of new
product development.
 Market size
• Made up of the total number of
potential buyers of a product or service
within a given market, and the total
revenue that these sales may generate.
• Entrepreneurs and organizations can use
market sizing to estimate how much profit
they could potentially earn from a new
business, product or service. This helps
decision-makers to decide whether they should
invest in it.
 Marketing Plan
• A marketing plan is a strategic roadmap that
businesses use to organize, execute, and track
their marketing strategy over a given time
period.
• Marketing plans can include separate
marketing strategies for the various marketing
teams across the company, but all of them
work toward the same business goals.
 Types of Marketing Plan
• Quarterly or Annual Marketing Plans
• Paid Marketing Plan: native advertising or paid social media promotions. (youtube
paid promotions ).
• Social Media Marketing Plan: This plan could highlight the channels, tactics, and
campaigns(Facebook likes and promotions )
• Content Marketing Plan: This plan the strategies in which you'll use content to
promote your business or product.(vlog , bharama kumari’s , art of living
 Pricing strategy Rigor
• Rigor means is to know about  the
bringing discipline, rules, thoroughness,
consistencies and framework to
processes and operations.
• For example now a days : Ending a price with
an odd number to make a customer feel like
they're spending much less (Rs.99 instead of
Rs.100). This is often known as charm pricing.
 Types of capital infusion
• Equity Capital(each share representing a
part ownership of the company).
• Preference share capital (mandate a fixed
dividend to be provided every year for
each of the preferred stock).
• Business Bank loans (structured process
for credit facilities ).
• Debentures (long term funding in form
of debt).
 Minimum Viable Product
• A product that has just enough features
to satisfy early customers and fulfill at
least one of their identified needs.
• Go live, what proof of concept is needed.
• MVP is a development technique in which a new
product is introduced in the market with basic
features, but enough to get the attention of the
consumers. The final product is released in the market
only after getting sufficient feedback from the product's
initial users.( satisfy with basic feature like milton
bottle ,water remain cold for 12 hr.)
 Planning Your Minimum Viable
Product
• Identify and Understand The Business Needs.
a) Determine the long-term goal of the
product and write it down. b) Answer the
question “Why are we doing this project?” ...
• Find The Opportunities. a) Map out the user
journey(s) Identify the users (actors) ...
• Decide What Features To Build.
• Name of product/service. Website, visiting
card, office space.
• (The main purpose of an office environment is to support its occupants in
performing their jobs. Work spaces in an office are typically used for conventional

office activities such as reading, writing and computer work .)

 Valuation and harvesting.
• Harvesting (or exiting) is the method owners and
investors use to get out of a business and, ideally,
reap the value of their investment in the firm. Many
entrepreneurs successfully grow their businesses but fail
to develop effective harvest plans.
• Valuation is a quantitative process of determining the fair
value of an asset or a firm. In general, a company can be
valued on its own on an absolute basis, or else on a relative
basis compared to other similar companies or assets.
• Valuation is the analytical process of determining the current
(or projected) worth of an asset or a company. An analyst
placing a value on a company looks at the business's
management, the composition of its capital structure, the
prospect of future earnings, and the market value of its