Aug 13 2013
More and more students, both in undergraduate and graduate institutions, are deciding to launch their own ventures upon graduation rather than taking the traditional route of working for another firm. While these ventures may ultimately be very successful (e.g., and Microsoft were both launched by students), they face certain challenges in their business plans and capital raising processes. The foremost challenge is overcoming the lack of experience of the management team. Advisors can also help with the execution of the and sometimes will also provide the needed capital.
A classis chicken-and-egg problem presents itself â€“ the management team has no past company successes to point to, and canâ€™t prove itself unless given the opportunity to launch the . It also proves that the entrepreneurs have the ability to â€œsellâ€ others on their vision. The team need not be complete before seeking capital, since additional members will most likely be added after capital is raised.
Even if the venture is able to attract quality management teams and advisors, it will always be at a disadvantage versus other ventures headed by entrepreneurs who have â€œbeen there, done thatâ€ successfully in the past. To compensate for this, these ventures must really know their , know their market and know their competition. In summary, when or first time entrepreneurs, begin developing their business strategies and plans, they must compensate for the management deficiencies they possess versus established entrepreneurs.
Tags: ability, Advisors, Business, Capital, challenge, company, confidence, credibility, development, experience, firm, graduate, graduation, knowledge, management, market, opportunity, plan, team, undergraduate, venture, vision
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