Many factors combine to determine the ultimate success or failure of a new venture. Identify three factors that support the successful development of a new venture and three factors that may serve as barriers to new venture development. Respond to two of your classmates’ postings.
A new business venture is always risky, in fact, “statistics show that 8 out of 10 new businesses fail within the first three years.” (Mason, 2010) There are several factors that come into plan when determine if the new ventures will succeed or if it will be of the 8 of 10 failures.
In order to succeed with a new venture, there must be a thorough business plan, enough capital, and the right opportunity. Having the right, well thought through business plan can be a huge decider of the out come of the new venture. A business plan should clearly describe the direction, goals and roadmap the business. It takes a substantial amount of money to start any venture and often businesses will run out of money before they can really get going. Raising enough capital is essential for any new venture. “ An opportunity is a favorable set of circumstances that creates a need for a new product” (Barringer, 2010 p.42) For a new venture to be successful, there has to be a need or they need to create a need for the new products or services, this is their opportunity.
Often times, when a new venture fails, it because they lacked a plan, ran out of capital and did not have products or service that that were in demand. Not having the right business plan cause a new venture to fail quickly, after all, the plan is our roadmap for success. New ventures will often fail because they simply run out of capital. It is very easy to under estimate the amount of money that will be necessary to start a new venture. Getting consumers to buy your products or services is essential. The new venture simply will not survive without sales. Therefore, its important to exploit the right opportunity with products or services that there is a market for.
Barringer, B.R., & Ireland, D.R. (2010). Entrepreneurship: Successfully launching new ventures (3rd ed.). Upper Saddle River, N.J: Pearson Education.
Mason, m. (2010). Research on small businesses. Retrieved from http://www.moyak.com/papers/small-business-statistics.html