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The

Entrepreneurial
Lifecycle
Presented By: Kavit Doshi (Roll
No- 113)
Flow of presentation
Entrepreneurial Life Cycle
Entrepreneurial S-curve
Risk Model
Fit Model
Conclusion
Life-cycle stages
What is born today, Must die tomorrow

The ‘IDEA’
Growth
Shakeout
Maturity


Entrepreneurial Lifecycle Chart

Revenue
Maturit
y

Shakeou
t

Incubation
IPO /
acquisitions
Growth

Ide Banks / financial


institutions
aBusiness Market development/
plan/ roll-out
Time
startup

Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
The ‘IDEA’ (Stage 1)
 Not everyone with an idea starts his/her
business
Intent
Motivation
Mindset
Mull over the idea
INCUBATION CENTRE (e.g. Hi-Tech Products)to:
Designing and Prototyping the product
Test marketing
Developing customer & supplier base
Not all need INCUBATION MODEL
1st milestone (for Technology Based Products):
Development of the Prototype
Tested with few ‘alpha’ customers
2nd milestone:
Launching in a limited way
Next tranche of funding usually needed here
-
Entrepreneurial Lifecycle Chart

Revenue
Maturit
y

Shakeou
t

Incubation
IPO /
acquisitions
Growth

Ide Banks / financial


institutions
aBusiness Market development/
plan/ roll-out
Time
startup

Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
Growth (Stage 2)
Entrepreneur goes for expansion through:
Capturing Market Share
Differentiating
Expanding channels
Training and Expanding the core team
Acquiring resources
Entrepreneur Focuses on:
Developing Operational Systems
Achieving Sales growth
Increasing market Share
VCs bring in important Value Additions

Entrepreneurial Lifecycle Chart

Revenue
Maturit
y

Shakeou
t

Incubation
IPO /
acquisitions
Growth

Ide Banks / financial


institutions
aBusiness Market development/
plan/ roll-out
Time
startup

Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
Shakeout (Stage 3)
Period of Continuous Growth
Company is now big enough to be ‘noticed’
Entrepreneur goes for:
Rapid growth and professionalization
Attempts for Market Leader Position
Broadens product/service lines &
geographical coverage
To carry on Continuous Growth:
New Venture Strategies
Continuous Innovations
In a position to approach the Banks for Debt
Funding
Entrepreneurial Lifecycle Chart

Revenue
Maturit
y

Shakeou
t

Incubation
IPO /
acquisitions
Growth

Ide Banks / financial


institutions
aBusiness Market development/
plan/ roll-out
Time
startup

Pilot/Prototy Venture
pe capitalists &
Founders corporate
fund investors
Maturity (Stage 4)
Entrepreneur’s Alternatives regarding future
Evolve the company
Partial/Full management buy-outs
Founder’s Vision and Objectives
May Cash-out to start another business
It is a Journey that is
Important

It is a journey of Self -
actualization and
realizing one ’ s full
Potential

The truly successful are


those few who are
Contended and Disciplined
The Entrepreneurial
S - Curve :
A Conceptual Model for
Entrepreneurial Life
Cycle

 Submitted to the:
 International Council for

 Small Business and Entrepreneurship


2005
 Annual Conference

 June 15-18, 2005


Introduction
A single, holistic model to help entrepreneurs
conceptualize the entire entrepreneurial process
The concept of the entrepreneurial S-curve is
intended to help entrepreneurs predict,
formulate, and execute strategies over time,
taking into account changes in context.
It includes
Risk Model
Fit Models
Finally, we correlate the entrepreneurial S-
curve, entrepreneurial risks, and the fit
models together, and suggest a future
research agenda and three propositions.
The Risk Model
The conceptualized entrepreneurial S-curve with three
stages in the entrepreneurial process as well as
possible and relevant risks along each stage
3 stages:
 Startup
 High Growth
 Sustainability
 (global enterprises)
Entrepreneurial Risk
All of the risks may occur at all three stages. This
paper attempts to focus on those risks that are most
prominent at specific stages of the three-stage
entrepreneurial process.
Six Risks
1.Developmental Risk
2.Manufacturing Risk
3.Marketing risk
4.Management Risk
5.Growth Risk
6.Public Financing risk
Performanc
e

(5) Growth
Risk
(6) Public Financing
Risk

(3) Marketing
Risk

(2) Manufact- (4) Management


uring Risk Risk

Time
(1) Developmental Risk
Entrepreneurial Fit
Models
May be helpful for entrepreneurs to manage
stage-related risks
Elements in the Four Fit model
Start-up Stage
Hi-growth Stage
Sustainability Stage
Global Enterprise
Each stage in the entrepreneurial process
involves three correlating and critical
elements that must fit together to achieve
success at that stage.
Fit model: Start-up Stage
Entrepreneur

Venture Context
Fit model: Hi-growth
Stage
Tools

Task Manager
Fit model: Sustainability
Stage
Product

Market Finance
Fit model: Global
Enterprise
Entrepreneur

Venture Context
S-curve, Risk and Fit Model
correlation
 The Fit Models and entrepreneurial risks formulates a cycle along
the entrepreneurial process.
 As the two approaches join, elements within the Start-up Fit Model
relate to the early stages of an entrepreneur’s journey.
 Once the initial investment and the payback period has been
achieved, a firm may begin to experience rapid growth and
expansion.
 Using the tools provided by the Hi-growth Fit Model, managers can
ensure that the organization has the potential to continue to
develop into a larger business venture.
 Businesses at some point usually enter into a period of stagnation
(commonly following a period of rapid growth). During this
phase, managers of a firm may profit from an understanding of
the sustainability phase and its elements of product, market, and
finance to keep its operations viable.
 This conceptual framework may allow entrepreneurs, corporate
leaders, and venture capitalists to better understand their own
businesses and forecast potential risks and opportunities,
thereby formulating plans to avoid obstacles, seize
opportunities, and achieve new Heights.
“ If I am in control ,
I’m probably moving
too slow !”
- Mario
Andretti

Thank You