Online Schools

Business Planning for College Students and First-Time Entrepreneurs

Views: This article has been read 827 times Thumsb up
Rating: 10 user(s) have rated this article

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.

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 Hölzle was hired away from UC Santa Barbara as vice president of engineering.

Attracting high-quality advisors builds great credibility since if respected individuals are willing to risk their reputations by taking an advisory position, the venture must have some merit. Advisors can also help with the execution of the business and sometimes will also provide the needed capital. In Google's case, when no major portal was interested in partnering with or funding the company, Larry Page and Sergey Brin were able to convince Andy Bechtolsheim, one of the founders of Sun Microsystems, to become an advisor and investor. Bechtolsheim contributed the initial $100,000 to the company.

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 "been there, done that" successfully in the past. To compensate for this, these ventures must really know their customers, know their market and know their competition. By possessing an in depth knowledge of the external factors that will effect the company's success, the entrepreneurs can both create a solid business strategy and convince investors that an opportunity really exists. If the opportunity truly exists, then investors know that even if the venture is initially mismanaged, then they can hire additional managers later to put it back on course.

In summary, when students or first time entrepreneurs, begin developing their business strategies and plans, they must compensate for the management deficiencies they possess versus established entrepreneurs. By doing this and showing a comprehensive knowledge of their market, these ventures can level the capital raising playing field. Fortunately, these ventures can point to a long list of other successful companies which were launched by students and/or first time entrepreneurs, most notably Google and Microsoft.

As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.


How would you rate this article?



Comment Posted by QPPYvWpiHUPXYKmFXy on Thursday, December 29, 2016 1:08 AM


7Dw15R http://www.FyLitCl7Pf7ojQdDUOLQOuaxTXbj5iNG.com

Comment Posted by Johna757 on Monday, February 26, 2018 7:53 AM


Oh my goodness an amazing article dude. Thanks Nonetheless I am experiencing issue with ur rss . Dont know why Unable to subscribe to it. Is there anybody getting similar rss drawback Anybody who is aware of kindly respond. Thnkx dafddeebgfdc

Comment Posted by Pharme513 on Tuesday, February 27, 2018 12:18 AM


Hello url=http://via3indian.com/2.htmlviagra from india/url

Comment Posted by Pharmg235 on Tuesday, February 27, 2018 12:18 AM


Hello viagra from india http://via3indian.com/4.html

Comment Posted by Pharmc265 on Tuesday, February 27, 2018 12:18 AM


Hello

Comment Posted by Pharmg236 on Wednesday, February 28, 2018 6:25 AM


Hello url=http://via3indian.com/2.htmlviagra india/url

Comment Posted by Pharmd653 on Wednesday, February 28, 2018 6:25 AM


Hello viagra india http://via3indian.com/4.html

Comment Posted by Pharmc514 on Wednesday, February 28, 2018 6:25 AM


Hello

Comment Posted by Pharmf76 on Thursday, March 1, 2018 12:36 PM


Hello url=http://via3indian.com/2.htmlviagra india generic/url

Comment Posted by Pharme513 on Thursday, March 1, 2018 12:36 PM


Hello viagra india generic http://via3indian.com/4.html

Comment Posted by Pharma705 on Thursday, March 1, 2018 12:36 PM


Hello

Comment Posted by Pharma731 on Friday, March 2, 2018 6:42 PM


Hello url=http://via3indian.com/2.htmlviagra from india/url

Comment Posted by Pharme931 on Friday, March 2, 2018 6:42 PM


Hello viagra from india http://via3indian.com/4.html

Comment Posted by Pharmc436 on Friday, March 2, 2018 6:42 PM


Hello

Comment Posted by Pharme814 on Sunday, March 4, 2018 12:45 AM


Hello url=http://via3indian.com/2.htmlviagra from india/url

Comment Posted by Pharme735 on Sunday, March 4, 2018 12:45 AM


Hello viagra from india http://via3indian.com/4.html

Comment Posted by Pharmc978 on Sunday, March 4, 2018 12:45 AM


Hello

Comment Posted by Pharmb286 on Monday, March 5, 2018 6:49 AM


Hello url=http://via3indian.com/2.htmlviagra india/url

Comment Posted by Pharme777 on Monday, March 5, 2018 6:49 AM


Hello viagra india http://via3indian.com/4.html

Comment Posted by Pharmk156 on Monday, March 5, 2018 6:50 AM


Hello

Comment Posted by Pharma836 on Tuesday, March 6, 2018 1:02 PM


Hello url=http://via3indian.com/2.htmlsildenafil generic india/url

Comment Posted by Pharme348 on Tuesday, March 6, 2018 1:02 PM


Hello sildenafil generic india http://via3indian.com/4.html

Comment Posted by Pharmg112 on Tuesday, March 6, 2018 1:02 PM


Hello

Your Name(required)

Your Email(required)

Comments(required)