2. The venture setup process means the
set of activities required to create an
organization that is able to produce
some work that is competitive in the
market place.
3. Thus, setup is primarily organizational,
where the key resources are assembled
and campaigned in such a way that
product/service positioning, differentiation,
competitive advantage, comparative
advantage, and, in sum, value creation,
result.
4. The end result of the setup should be a
competitive product or service to come
into existence.
5. It is critical to ascertain-even test- the extend to which
a product or service can be fashioned effectively.
PRODUCTS: building, costing and testing a proto type
SERVICE: developing clear service specification, and also testing
them for cost within a target market.
With this an entrepreneur should become aware about
protecting the unique and competitive features of the
product.
6. What must be organized /structured
during the setup?
Forming an advisory board
•
• Forming relationships with new venture employees
• Establishing internal reporting relationships, policies,
and procedures
• Identifying and engaging legal and accounting services
• Forming the venture entity/legal structure
• Making make or buy decisions
• Establishing relationship with suppliers
• Establishing production or service delivery systems
and or/facilities
• Establishing banking relationships
• Establishing an accounting and financial reporting
system
7. • Obtaining needed licenses and insurance
• Deciding location issues
• Arranging helpful alliances (e.g., industry or buying
groups)
• Updating the business plan (to reflect the reality of
new relationships)
8. A Student’s View of the Setup Process
• Testing of the product or service until
optimal product or service developed.
• Legal protection for the product/process
• Attract purchase orders, to ensure all
competitive assumptions are valid
