Business Media Blog

Business Planning For Students and First Time Entrepreneurs

Written by admin on April 13th, 2009

Everytimes more students in both Undergraduate and Graduate institutions, the decision on opening their own businesses on graduation from the traditional type of work for another company. Also more and more people leave their jobs to fulfill their dreams of business.

While these companies, ultimately very successful (eg, Google and Microsoft have both, the students), they face some challenges in their business plans and process capital. The challenge is to overcome the inexperience of the management team. Classis of a chicken and egg problem presents itself - the management team did not go to blows on business, and may not prove to himself, unless the opportunity for business. While this problem is almost always the case for the graduates, but also has many businesses, particularly those that the introduction of its first Ventures.

To meet this challenge, these companies should be a great team as stellar management team and / or advisor. By obtaining a quality management team, even if the team after the financing, it gives the investor confidence that the plan correctly. He shows that entrepreneurs have the opportunity to “sell” others on their vision. The management team should not be completed before seeking capital, since other members are likely to be capital increases. For example, shortly after the capital of Google, Sequoia Capital and Kleiner Perkins Caufield & Byers, Omid Kordestani Netscape left a position as Vice President of Business Development and distribution, and Urs Hölzle was hired to UC Santa Barbara as Vice President of Engineering.

Production of high quality consulting based credibility since if respected individuals are willing to their reputation, an advisory opinion, the Venture, some deserve. Counselors may also contribute to the implementation of the activity and sometimes even provide the necessary capital. In the case of Google, if the absence of portal was created in collaboration with and funding of the company, Larry Page and Sergey Brin were able to convince Andy Bechtolsheim, a founder of Sun Microsystems, a advice and investors. Bechtolsheim give first $ 100,000 for the company.

Although the company is able to quality management teams and counselors, it is increasingly a disadvantage compared to other companies in the management of companies, “been there, done that “successfully in the past. To compensate for them, these companies need to know their customers, know their market and their competition. With a good understanding of external factors that influence the success of the business, entrepreneurs, both a strong business strategy and convince investors that really a chance. If the possibility exists, then investors know that even if firms first is wrong, then they can more coaching, and then back on track.

In summary, when students or entrepreneurs from the first time, began developing their business plans and strategies, there must be compensation for the management of defects that they have compared to entrepreneurs. In this way, and with a vast knowledge of their markets, these companies can rely on the capital of conditions. Fortunately, this company has a long list of successful entrepreneurs were students and / or first time entrepreneurs, including Google and Microsoft.