Thursday, July 25, 2019

Business Models and Planning Essay Example | Topics and Well Written Essays - 500 words - 2

Business Models and Planning - Essay Example Remarkably, VCs consider diverse factors before deciding to invest their funds in various business opportunities. There are three major factors the VCS would evaluate to ascertain the viability of the business opportunities. The factors include market size, management team and technology, as outlined by Roberts and Barley (2004). The first factor that VCs consider when investing in a new business is the management team. Regarding the management team, the VC must evaluate the ability to adapt to prevailing marketing environment. In essence, it is the ability of the business to cope with the dynamicity and complexity of the business environment. VCS would consider whether to continue with the existing marketing team or employ more workforces. The management team should consist mostly of a focused team of entrepreneurs whose primary objective is the success of the business (Roberts & Barley, 2004). The second factor that VCs consider before venturing in the new business is the ‘market’. The market is the strength of every business. Either the market is the physical location of the business or any other platform where the exchange of goods and services take place. The entrepreneur should access the market size and formulate viable marketing strategies in order to evaluate the accessibility and the possibility of expansion and developing the market niche. The penetration of the business’ products is a great factor in marketing that is the ability of the products to compete in new markets. The third critical factor considered by VCs when investing in a new market is technology. Notably, technology is a current trend in the world of business. Most business operations, today, require technology to enhance the efficiency and productivity of the company. Technology facilitates speed and accuracy in the production process. The application of the technology in various departments would enable the company to limit the chances of

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