RESOURCE REQUIREMENTS AND THE BUSINESS PLAN Business Strategy Dr. Richard C. Becherer Faculty of Economics and Management Czech University of Life Sciences Prague Resource Requirements “When it comes to control of resources… all I need from a source is the ability to use [the resource]. These are people who describe the idea business as a post office box to which people send cash.” Howard Stevenson Seize an opportunity regardless of resources currently controlled. Entrepreneurs seek to control rather than own resources. They want to use the minimum that they need to get the job done. 1. Capital – minimum to reduce financial exposure 2. Flexibility – by not owning resources, you can commit and decommit quickly. 3. Low sunk costs 4. Costs – quicker breakeven since fixed costs are less 5. Reduced risks of obsolescence, etc. Generally, we want to think about multi-stage employment of resources Using Other People’s Resources (OPR) People Space Equipment Free booklets Software Loans Issues in Assembling Resources 1. How much money do you need? 2. When will you need cash? 3. Need good forecasts of: Start-up costs Working capital Sales/revenue/costs Can you internally finance growth? Most entrepreneurs get rejected by venture capitalists Too often: – Not large scale – No proprietary advantage – No well defined plans – No well regarded founders. Venture capitalists are not interested in niche markets. Entrepreneurs are often long on energy, ideas, and enthusiasm but short on credentials.
Pages to are hidden for
"RESOURCE REQUIREMENTS AND THE BUSINESS PLAN"Please download to view full document