ENTREPRENEURSHIP
VENTURE LIFE CYCLE
By: Elisante Ole Gabriel (Tanzania)
egabriel@edenconsult.net, www.olegabriel.com
+255-784-455-499
Key Issues about the Venture Cycle
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There are static and dynamic forces which
need a special attention of the entrepreneur
Entrepreneur needs to manage for changes and
not changes
The growth stage of the venture is more
sophisticated with competition and dilemmas
At a certain stage, you need to decide whether
to do more innovation or allow decline
Stages of the VC - Model
There are five key stages (just typical)
(i)
New Venture Development
(ii) Start-up Activities
(iii) Growth of the Venture
(iv) Stabilization
(v)
Innovation or Decline
New venture dvt Stage
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Creativity and assessment
Resource base analysis
Networking including vertical marketing
Vision, Mission, Objectives, Strategies &
Tactics
Start-up Stage
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Formal Business plan
Searching for capital (Analyse the risks)
Marketing research
Developing a working team
Identifying any core competencies for
Competitive Advantage
Growth Stage
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Any modification on he operating strategy
Positioning and re-positioning
Knowing more details about he competitors
(Survival of the fittest)
Stabilization Stage
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Increased competition
High bargaining power of customers
Saturation of the market
The entrepreneur needs to think where will the
business be in the near future
It is a stage preceding a great dilemma: to
innovate or exit the business
Finally
Innovation or Decline? stage
Without innovation the clear option is ‘death’
 Possibility of acquiring or being acquired
 Might design new products for new markets
(Diversification)
Conclusion
ALL STAGES ARE STRATEGIC POINTS OF
THE VENTURE HENCE A NEED FOR
SPECIFIC STRATEGIES FOR EVERY
STAGE!
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