1 / 11

Resource Requirements

Resource Requirements. Venture Planning Chapter 11 Dowling Fall 2005. Resource Requirements. The Entrepreneurial Approach to Resources People Financial resources Assets (plant, equipment, etc.) A business plan. Resource Requirements. Entrepreneurship

rhoslyn-bronwen
Download Presentation

Resource Requirements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Resource Requirements Venture Planning Chapter 11 Dowling Fall 2005

  2. Resource Requirements • The Entrepreneurial Approach to Resources • People • Financial resources • Assets (plant, equipment, etc.) • A business plan

  3. Resource Requirements • Entrepreneurship • The process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled. • Entrepreneurs seek to use the minimal possible amount of all types of resources at each stage in their venture’s growth. • Don’t own resources – control resources.

  4. Resource Requirements • Entrepreneurs reduce some risk by… • Capital • Amount required is smaller, reducing dilution of founder’s equity • Flexibility • Without ownership of resources, entrepreneurs can commit and de-commit quickly

  5. Resource Requirements • Entrepreneurs reduce some risk by… • Low sunk cost • Sunk costs are lower if firm exercises option to abort • Costs • Fixed costs are lowered, favorably affecting breakeven • Reduced risk • Reduce total exposure, and avoid problems such as obsolescence of hard assets

  6. Resource Requirements • Bootstrapping • Entrepreneurs ask at every step how they can accomplish more with less. • “For the great majority of would-be founders, the biggest challenge is not raising money but having the wits and hustle to do without it.” – Amar Bhide

  7. Resource Requirements • OPR • Using OPR (‘Other People’s Resources’) is an important approach for entrepreneurs. • The key is to have use of the resource and being able to control or influence the deployment of the resource.

  8. Resource Requirements • Outside people resources • Boards of directors • The decision • Selection criteria • Reasons appointees decline: • Liability • Harassment • Time and risk • Consider alternatives to boards

  9. Resource Requirements • Analyzing financial requirements • Last step of the process • Determine what financial resources are required only after the: • Opportunity has been assessed, • A new venture team has been formed, and • All resource needs have been identified.

  10. Resource Requirements • Key points summary • Successful entrepreneurs bootstrap to marshal and minimize resources. • Control, not necessarily ownership, of resources is key to the “less is more” resource strategy. • Entrepreneurs are creative at winning OPR. • Must you find outside advisors? Only if they add value through know-how and networks. • Access to resources is better today than ever before.

  11. Resource Requirements • Discussion question • Think of the interview you conducted with an entrepreneur. Did your subject provide insights as to how she or he “bootstrapped” their own ventures?

More Related