by bruno gabriel, loan marcin and david mesnildrey by bruno gabriel, michael gallego, loan marcin...
TRANSCRIPT
By Bruno GABRIEL, Loan MARCIN and David MESNILDREY
By Bruno GABRIEL, Michael GALLEGO, Loan MARCIN and David MESNILDREY
Start a new venture
Start a new venture
“Start-up's success is 1% your invention, 99% your business skills.”
Creativity
Information Key of success
Information
Product
Which market niche ?
Price range / Quality / Demographics
Competition
How to differentiate from them ?
Information
Customer base
Who is your target ?
Location
Financial and administrative aspects
Finance Alone or not ?
Conditions
Knowledge Intense R&D
Demand Large and quickly growing market
Industry lifecycle Young industries
Industry structure Avoid intensive industries
“A venture is most prone to failure during its first three years of operation - the so-called 'valley of death'. A key to getting through these early years is to avoid the obvious mistakes."
– from 'Devising Venture Strategies', Invest-Tech Ltd.
Common pitfalls of new-ventures
Pitfalls
Buying a job rather than a business
Being a great plumber but having no idea how to run a business that sells plumbing
Taking on a business partner
Starting a business from scratch
Pitfalls
Thinking the business idee will make the company
Thinking too small
Competing on price and price alone
Trying to cost-cut your way to success
Pitfalls
Hiring cheap employees
Focusing on only one area of your business
Not testing or measuring anything
Doing the work once and getting paid once
Critical factors involved in the development
Critical factors involved in the development
Focus on market Make a financial foresight Build top management team before
starting the venture Make the right decision In-companies case: Insulate the new
venture from main business
Why new venture
fail ?
Why new venture fail ? Development risk:
Can the product or service actually be created?
Manufacturing risk: If the product can be developed, can it actually
be produced in appropriate volume?
Marketing risk: If the product can be made, can it be sold
effectively?
Why new venture fail ? Financial risk:
If the product can be sold effectively, will the resulting company be profitable and can the profits actually be realized in a form that allows investors to receive cash?
Growth risk: If the company can achieve operating
profitability at one level, can profitability be maintain as the company evolves?
Elements that underlines Venture
success
Elements that underlines Venture success
An Effective management team Venture financing Decisions based on a clear understanding
of the market Be open-minded A well-researched business plan Be a good money manager and remain in
control of venture’s books Passionate entrepreneur about his new
venture
Management Team
Understanding of the market
Business plan
Example of success
Petronas
Malaysian owned company
Founded in 1974
Biggest company in Asia
Historical aspects
Let’s go back to the beginning of the 70’ More and more request of oil and gas Major companies become less influential
Malaysia is dependant of Esso, Shell… The government wanted to remove this
dependancy !
Favorable factors and innovation
Lot of research about extensive exploration and drilling offshore It helps Petronas to develop faster The country is situated near the Bunka Shelf
It decided in the 80’ to develop natural gas also Malaysian’s natural gas is exported worldwide
Others favorable aspects
Cultural aspects Petronas is a company from Asia, not a
European or American one A lot of contracts were made with asiatic
country (Myanmar, Vietnam, Japan…)
The company is known all over the world Motorsport (main sponsor of BMW) Education (« universiti Teknologi Petronas »)
What are the keys to the success ?
Future prospects
Cultura
l asp
ects Good opportunities
Diversification
Financial power