Comm320-10-Stages of Growth and PM WK10.ppt

Comm320-10-Stages - ENTREPRENEURSHIP | A.Giamp COMM 320 The Transition from Entrepreneurship to Professional Management To grow or not to grow 2

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
COMM 320 The Transition from Entrepreneurship to Professional Management ENTREPRENEURSHIP | A.Giampà
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
To grow or not to grow? Not all entrepreneurs aspire to grow the business….they are often concerned with: Giving up control Jeopardizing their accrued wealth Getting a fair valuation of the business Forming realistic expectations for improvement of status quo Whether the business can survive without them 2 A. Giampà - COMM 320 W 2010 Section P
Background image of page 2
Stages Of Growth Pre-Start-up Start-up Growth Maturity Focus Product Market Management Reinvention or dissolution 3 A. Giampà - COMM 320 W 2010 Section P
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Stages Of Growth 1. Start-up / Conception / Existence Entrepreneur’s vision is key to the success of the venture Founders are technically or entrepreneurially oriented Highly centralized, informal structure, systems and planning Communication between employees is frequent and informal Long hours of work rewarded by modest salaries and promise of ownership benefits Requires: creativity, high need for achievement, risk taking Creative activities are essential @ start-up but become problems as company grows Many start-ups don’t gain sufficient customer acceptance to be viable Other times the owner gives up because the demands are greater than anticipated and the payoff is less than anticipated Need to have leadership with a vision and commitment 4 A. Giampà - COMM 320 W 2010 Section P
Background image of page 4
Stages Of Growth 2. Survival Business has demonstrated that it is a workable business entity (concept is proven) Business has enough customers and satisfies them sufficiently (particularly repeat customers) Cash flow becomes a concern: constant struggle to reach break-even (get head above water and stop having shortfalls each month) and understand revenues / expenses System development is minimal Can remain some form of “hobby” type business suitable for the owner Structure is still simple: few employees May have to add personnel to keep up with demand, but Owner is essentially the business 5 A. Giampà - COMM 320 W 2010 Section P
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Stages Of Growth 3. Profitability & Stabilization Business is now self-sufficient; profitability is necessitated by increases in sales volume, head count and the complexity of managing the firm Key stage of business growth because owner is now too busy for hands-on and needs to start delegating to managers or decide to plateau Formalization, decision-making, planning, structure and the hiring of professional management become necessary Functional organizational structure is introduced Accounting systems for inventory and purchasing are introduced Communication becomes more formal and impersonal as hierarchy of
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/14/2010 for the course COMM comm 320 taught by Professor Denisbeauschesne during the Winter '10 term at Concordia Canada.

Page1 / 21

Comm320-10-Stages - ENTREPRENEURSHIP | A.Giamp COMM 320 The Transition from Entrepreneurship to Professional Management To grow or not to grow 2

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online