by bruno gabriel, loan marcin and david mesnildrey by bruno gabriel, michael gallego, loan marcin...

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