6th ed. Mason, OH: South-Western, Cengage Learning, pages, , English, Book; Illustrated, Launching new ventures: an entrepreneurial approach. Fifth Edition. LAUNCHING. NEW . and goals must be satisfied through the start- up of a new venture or entrepre- neurs will not have the . seum shop.6 When it comes to the Inc. Fastest Growing Private Companies, the amount of start-up . LAUNCHING NEW VENTURES provides tomorrow's entrepreneurs with the tools to Launching New Ventures: An Entrepreneurial Approach 6th Edition. by.
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Entrepreneurship: Successfully Launching New Ventures (6th Edition) – (eBook PDF). $ $. Add to cart Version: PDF. If you need EPUB and MOBI. Showing all editions for 'Launching new ventures: an entrepreneurial approach', Sort English. 6th ed. Mason, OH: South-Western, Cengage Learning. Launching New Ventures An Entrepreneurial Approach With Management Access Card 6th Edition by Allen, Kathleen R. Textbook PDF.
The company deftly negotiated broadcasting licenses in several developing countries and solved a number of complex technological challenges. Nevertheless, the business imploded. What was the problem? The radio receiver required complex features such as multimode playback, a keypad for ordering subscription services, and—worst of all—professional installation, which made the device unaffordable in most of the developing world.
The business limped along before ultimately going bankrupt. The company should not have left this key deal-killer assumption so utterly untested until late in the life of the venture.
Quick-hit market research and rapid prototyping could have provided early warning signals. Path-dependent risks. Rare is the new venture that never has to confront strategic forks in the road to success.
Path-dependent risks arise when pursuing the wrong path would involve wasting large sums of money or time or both. For example, consider the question confronting E Ink, a supplier of electronic paper display technologies in Cambridge, Massachusetts. Each option had different technical, marketing, and distribution requirements; if the company chose wrong, it risked misallocating millions of dollars. Rather than choosing one path and hoping for the best, E Ink reduced the cost of pursuing all three by outsourcing its marketing and production capabilities and then focused on resolving the risks associated with the core technology for all three applications.
Risks that can be resolved without spending a lot of time and money. Even after entrepreneurs have considered both deal-killer and path dependent risks, many uncertainties will remain on the table. But the more risks that can be eliminated, and the faster they can be removed, the greater the odds of success. For example, one of the earliest experiments that Reed Hastings, the founder of Netflix, conducted in developing his movie-rental-by-mail business was to mail himself a CD in an envelope.
Test Early, Test Cheaply Perhaps the most dangerous result of injecting too much money too soon into a venture is that it creates a confirmation bias in the minds of venture managers.
Instead of testing their assumptions, they become more and more invested in confirming them.
Targeted Experiments These are designed to pinpoint a deal-killer or path-dependent risk. Examples might include running tests on battery life before launching a new portable device, checking for toxicity in a drug before running full-scale efficacy tests, and testing bandwidth and connectivity concerns before launching an online learning program at various locations across the country. Integrated Experiments These are designed to test how various elements—the actual business model and operations—work together.
In essence, they involve launching the business, or some part of it, in miniature. Although pilot programs are nothing new, our experience suggests that entrepreneurs rarely give them sufficient time to play out.
From the beginning Kennedy intended to take his concept nationwide, but he started with just three restaurants. For almost an entire year he focused on sharpening the concept and making it work on a small scale. Today the chain has more than locations in 18 states.
An integrated experiment may be a pilot, a test-site location, a prototype, or any other trial operation.
Targeted experiments such as surveys and focus groups can provide insights, but those that come from placing the product in a sales channel where customers make actual download decisions are often much deeper. Fail to spot a deal-killer risk, and your venture is doomed. Fail to address a high-ROI risk in an orderly way, and you may transform a temporary setback into an insurmountable obstacle.
Such was the fate of a start-up we worked with that targeted the nascent medical tourism market. Several deal-killer risks faced the venture. Unfortunately, rather than tackling them early, by beginning with those that could be tested most quickly and at the least cost, team members plunged into a time-consuming and expensive effort.
To gauge demand, they conducted a series of long interviews with Fortune corporate benefits managers and insurers around the country. Things looked very promising. The first involved a seminar to introduce the concept to prospective patients. The second involved several phone calls to U.
In only two weeks and at virtually no expense , the team learned that patient demand was actually quite tepid and limited to a very narrow band of procedures, and that U. By failing to address their greatest risk—that no market existed for their services—in the cheapest and fastest way, the team members wasted significant resources and missed a critical opportunity to redirect their strategy to something more promising, such as a venture restricted to regional medical travel within the U.
S or travel to a close international destination like Mexico. A common mistake is to focus on one key risk to the exclusion of others. Sometimes you must be satisfied with partial risk resolution in one area, even as you start to consider and work on risk in another.
You can then confirm a rough price point at which customers can be served, even as you continue to reduce related technical risk. The more money that is sunk into a project at the outset, the less patience the company tends to have and the more people believe in the validity of their original approach, even in the face of evidence to the contrary. The way venture capitalists invest in start-ups—by providing capital in multiple rounds as the value of the venture increases—is far more effective.
The competitive advantage of autonomous start-ups is that they have too little money to go far in the wrong direction. We can demonstrate the power of this dynamic with two very different examples.
Vermeer Technologies, a start-up based in Cambridge, Massachusetts, had only one product: a website development tool called FrontPage. The company was eventually sold to Microsoft, and Microsoft FrontPage became the most widely used web-design software package in the world.
In the early s its founders had hoped to create an interface that would allow users to access content through a common reader across a wide network of computers all over the world.
There was only one problem: A nascent service—the World Wide Web—was free to anyone who wanted to access it. An equally instructive example with a less fortunate outcome is that of Joint Juice, a Bay Area company founded by an orthopedic surgeon who came up with the breakthrough idea of converting glucosamine, effective in reducing joint pain, from a large pill into a more convenient liquid.
Lavish advertising campaigns were built around professional and Olympic athletes. Why do myths emerge around phenomena such as entrepreneurs? In general, people rely on myths and stereotypes to categorize behavior or characterize individuals so that they can compare them to others.
The media rely on myths and stereotypes to convey information quickly. Since entrepreneurs are such a diverse group, it is nearly impossible to formalize such generalizations. How do corporate entrepreneurs differ from other types of entrepreneurs?
That is because these projects involve activities that are typically new to the company, so the risk of failure is high. There is also a high degree of uncertainty around such projects, so they are often managed separately from the core 8 Chapter 2: Preparing for the Entrepreneurial Journey business activities.
Recognizing that it is nearly impossible to re-engineer and redesign an entire organization, many companies have chosen from several options to simulate the entrepreneurial environment required for innovation to occur: Opportunistic model, enabler model, advocate model, or producer model.
What are the steps you should take to prepare yourself for entrepreneurship? To prepare for entrepreneurship, it is important to consider your reasons for wanting to own a business, assess your physical and emotional readiness, identify the kind of lifestyle you want to have, and determine the type of business environment that best suits you. What might explain the rise in interest in social or nonprofit entrepreneurship? In any case, entrepreneurs who focus on solving social issues and problems and finding sustainable solutions with their businesses are increasing in number.
Students will come up with a number of reasons, from climate change to poverty. The Internet, blogs, video sharing, and other means of communication have served to create heightened awareness of problems around the world. Entrepreneurs are problem solvers, so it is natural that some entrepreneurs would see opportunity in solving social problems.
Why are more ventures started by teams than by solo entrepreneurs? More ventures are started by teams because the global business environment is more complex and no one person has all the knowledge and experience to successfully launch a new venture. With a team, responsibility and risk are shared, and the team benefits from the aggregate experience, contacts, and financial statements.
Identify an entrepreneur who is leading the kind of personal and business life that you aspire to lead. Interview that person to find out more about how he or she achieved that lifestyle.