Login or e-mail Password   

Business Planning for College Students and First-Time Entrepreneurs

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 wo...
Views: 181 Created 11/22/2006

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. Likewise, more and more individuals are leaving their jobs to fulfill their entrepreneurial dreams.

While these ventures may ultimately be very successful (e.g., Google 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. A classis chicken-and-egg problem presents itself ? the management team has no past company successes to point to, and can?t prove itself unless given the opportunity to launch the business. While this problem is nearly always the case for graduating students, it also presents itself to many entrepreneurs, particularly those who are launching their first ventures.

To overcome this challenge, these ventures must represent themselves as having a great team by attracting a stellar management team and/or advisors. By attracting a quality management team, even if the team will not start until after financing, it gives investors that confidence that the plan will be properly executed. It also proves that the entrepreneurs have the ability to ?sell? others on their vision. The management team need not be complete before seeking capital, since additional members will most likely be added after capital is raised. For instance, shortly after Google raised capital from Sequoia Capital and Kleiner Perkins Caufield & Byers, Omid Kordestani left Netscape to accept a position as vice president of business development and sales, and Urs H

Similar articles


5
comments: 0 | views: 2473
9
comments: 3 | views: 16395
8
comments: 0 | views: 7547
7
comments: 0 | views: 9412
7
comments: 0 | views: 2334
7
comments: 0 | views: 10693
7
comments: 0 | views: 2426
7
comments: 0 | views: 1596
7
comments: 0 | views: 1095
 
Author
Added by: tyo
Article

Related topics






No messages


Add your opinion
You must be logged in to write a comment. If you're not a registered member, please register. It takes only few seconds, and you get an access to additional functions .
 


About EIOBA
Articles
Explore
Publish
Community
Statistics
Users online: 159
Registered: 61.472
Comments: 444
Articles: 66.448
© 2005-2014 EIOBA group.