Organizational Feasibility analysis

Organizational  feasibility  analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational com-petence, and resources to successfully launch.7 There are two primary issues to consider in this area: management prowess and resource sufficiency. 1. Management prowess A proposed business should evaluate the prowess, or ability, of its initial man- agement

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Financial Feasibility analysis

Financial feasibility analysis is the final component of a comprehensive fea- sibility analysis. For feasibility analysis, a preliminary financial assessment is usually sufficient; indeed, additional rigor at this point is typically not required because the specifics of the business will inevitably evolve, making it impractical to spend a lot of time early on preparing

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A Feasibility analysis template

First Screen, shown in Appendix 3.1, is a template entrepreneurial firms use to complete a feasibility analysis. It is called First Screen because a feasibil- ity analysis is an entrepreneur’s (or a group of entrepreneurs’) initial pass at determining the feasibility of a business idea. If a business idea cuts muster at this stage,

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HER CAMPUS MEdIA: Executing on an Established Business Model and Preparing for the Future

If you’re a female college student and are looking for an enriching experience, you might consider plugging into your college campus’s Her Campus chapter. Her Campus is the number-one online community for college women. Written entirely by 4,000-plus college journalists and supported by a dedicated staff at its Boston headquarters, Her Campus features national

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Business models and their importance

As stated above, a firm’s business model is its plan or recipe for how it creates, delivers, and captures value for its stakeholders. Glance ahead to Figure 4.2, the Barringer/Ireland Business Model Template. As you can see by looking at the template, a firm’s business model represents the core aspects of its busi- ness.

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General Categories of business models

There are two general categories of business models: standard business models and disruptive business models.5 Next, we provide details about each model. 1. Standard business models The first category is standard business models. This type of model is used com- monly by existing firms as well as by those launching an entrepreneurial ven- ture.

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The barringer/ireland business Model template

Although not everyone agrees precisely on the components of a business model, many agree that a successful business model has a common set of at- tributes. These attributes are often laid out in a visual framework or template so it is easy to see the individual parts and their interrelationships. One widely- used framework

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industry analysis

When studying an industry, an entrepreneur must answer three questions be- fore pursuing the idea of starting a firm. First, is the industry accessible—in other words, is it a realistic place for a new venture to enter? Second, does the industry contain markets that are ripe for innovation or are underserved? Third, are there

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The Five Forces model

The five forces model is a framework entrepreneurs use to understand an industry’s structure. Professor Michael Porter developed this important tool. Shown in Figure 5.1, the framework is comprised of the forces that determine industry profitability.7 These forces—the threat of substitutes, the threat of new entrants (that is, new competitors), rivalry among existing firms,

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The value of the Five Forces model

Along with helping a firm understand the dynamics of the industry it plans to enter, the five forces model can be used in two ways: (1) to help a firm deter- mine whether it should enter a particular industry and (2) whether it can carve out an attractive position in that industry. Let’s examine

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Industry types and the opportunities they offer

Along with studying the factors discussed previously, it is helpful for a new ven- ture to study industry types to determine the opportunities they offer.13 The five most prevalent industry types, depicted in Table 5.3, are emerging industries, fragmented industries, mature industries, declining industries, and global in- dustries.14 There are unique opportunities associated with

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Competitor analysis

After a firm has gained an understanding of the industry and the target mar- ket in which it plans to compete, the next step is to complete a competitor analysis. A competitor analysis is a detailed analysis of a firm’s competition. It helps a firm understand the positions of its major competitors and the

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Introduction to business Plan

1. The business plan As illustrated in the basic model of the entrepreneurial process shown in Chapter 1, writing a business plan is the last activity completed in the step of the entrepreneurial process titled “Developing Successful Business Ideas.” It is a mistake to write a business plan too early. The business plan must

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Guidelines for Writing a business Plan

There are several important guidelines that should influence the writing of a business plan. It is important to remember that a firm’s business plan is typi- cally the first aspect of a proposed venture that an investor will see. If the plan is incomplete or looks sloppy, it is easy for an investor to

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Outline of the business Plan

A suggested outline of the full business plan appears in Table 6.2. Specific plans may vary, depending on the nature of the business and the personalities of the founding entrepreneurs. Most business plans do not include all the elements introduced in Table 6.2; we include them here for the purpose of completeness. 1. Exploring

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Presenting the business Plan to investors

If the business plan successfully elicits the interest of a potential investor, the next step is to meet with the investor and present the plan in person. The in- vestor will typically want to meet with the firm’s founders. Because investors ultimately fund only a few ventures, the founders of a new firm should

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Establishing a Strong Ethical Culture for a Firm

One of the most important things the founders of an entrepreneurial venture can do is establish a strong ethical culture for their firms. The data regarding business ethics are both encouraging and discouraging. The most recent ver- sion of the National Business Ethics Survey was published in 2013. This survey is the only longitudinal

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Dealing Effectively with legal issues

Those leading entrepreneurial ventures can also expect to encounter a number of important legal issues when launching and then, at least initially, operating their firm. We discuss a number of these issues next. 1. Choosing an attorney for a Firm It is important for an entrepreneur to select an attorney as early as possible

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Obtaining business licenses and Permits

Many businesses require licenses and permits to operate. Depending on the na- ture of the business, licenses and permits may be required at the federal, state, and/or local levels. There are three ways for those leading a business to deter-mine the licenses and permits that are necessary. The first is to ask someone who

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Choosing a Form of business organization

When a business is launched, a form of legal entity must be chosen. Sole proprietorships, partnerships, corporations, and limited liability companies are the most common legal entities from which entrepreneurs make a choice. Choosing a legal entity is not a one-time event. As a business grows and ma- tures, it is necessary to periodically

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