Entrepreneurship: Creating A New Venture

entrepreneurship ( creating a new venture) No Plagerismfin

Course Titleentrepreneurship Creating A New Ventureno Plagerismfin

COURSE TITLE: entrepreneurship ( creating a new venture) No Plagerism Final class Assignment Part 1: Answer the following questions 1. Many successful entrepreneurs and private investors say it is just as bad to start out with too much money, as it is too little. Why is this so? Give some examples. 2. How would a banker look at a loan application different than an angel investor looking at a business plan? Explain 3. What is a company worth? Explain the theory and the reality 4. Explain the pros and cons of using Debt vs. Angel money vs. Venture Capital 5. In selecting outside investors, a board, consultants and the like, what are the most important criteria, and why? --------------------- Part 2 : Reflective paper NO LONGER THAN 4 PAGES It can be more difficult to write a succinct 4-page paper than a longer paper. So, outline, work and rework your paper before submitting to the maximum length. Be sure to edit your paper before submitting as poor grammar and syntax detract from the value of the paper. You should use headings to clearly label the discrete parts of the paper. Since this is in lieu of an exam I am expecting you to put into this paper a similar amount of time you would have spent studying and taking the exam. In this paper, you will be looking back and focusing on what you have learned overall and what you are taking away from this course. This could include things you have learned from the text, from class, our guest speakers, your project, outside readings, as well as fellow students. Was there an “AHA” moment or something that you heard/read that really resonated with you? You should also discuss how you anticipate using the learnings you gained about entrepreneurship and specifically about creating a new venture in the future. This might include future jobs, graduate school, or any other setting where you feel the learning applies. -------------------- Part 3 Bonus : How have you used the Fish Philosophy in your daily life? Give an example or 2 ------------------- Also, attached is a sample paper (attached as "sample paper") a friend of mine completed, you can use it as an aid to answering these questions. Please do not plagarize at all. Additionally, for Part-2: I started a new venture for this class which was an online radio station, I have attached a file under the name of "start up" which gives you a brief description which you could also talk about in Part- 2. Please feel free to contact me with any questions or doubts you may have. Thanks!

Paper For Above instruction

The process of creating a new venture necessitates strategic considerations regarding financial resources, investor relations, valuation, and team composition. This paper explores key lessons gained from a comprehensive entrepreneurship course, focusing on financial management, investor dynamics, valuation theories, and the application of entrepreneurial philosophies in daily life, specifically relating to my online radio station project.

Part 1: Key Concepts and Questions

The notion that both excessive and insufficient funding can impede entrepreneurship is well-acknowledged among successful entrepreneurs and investors. Excessive capital at startup can lead to complacency or misallocation, reducing the urgency or discipline necessary for lean operations. For example, some tech startups have failed after overfunding in their early stages, losing focus on core product development and customer needs (Blank & Dorf, 2012). Conversely, limited funding forces entrepreneurs to prioritize critical activities and can foster innovation through constraint, as seen in companies like Airbnb during their initial bootstrapped phase (Gans et al., 2018).

Bankers typically evaluate loan applications based on financial stability, collateral, cash flow projections, and personal guarantees, emphasizing repayment ability and asset security (Berger & Udell, 2006). Angel investors, however, prioritize the potential for high returns, the entrepreneur’s passion, and the scalability of the business plan. They often accept higher risks in exchange for equity stakes, seeking ventures with disruptive potential (Napier & Ngugi, 2014). This fundamental difference in risk appetite and investment criteria shapes distinct evaluation processes for these funding sources.

From a valuation perspective, a company's worth is often modeled through theoretical frameworks such as Discounted Cash Flow (DCF) or comparables, but the reality is more nuanced. Market sentiment, strategic asset value, and future growth prospects can significantly influence actual valuations, which may diverge from purely mathematical estimates (Damodaran, 2012). For example, startups like Uber have attained valuations far exceeding traditional financial metrics due to anticipated exponential growth and network effects.

Debt financing offers benefits like maintaining ownership control and predictable repayment schedules, but risks include debt burden and cash flow pressure. Angel investments represent risk-sharing and mentorship opportunities but can involve giving up equity, thereby diluting ownership. Venture capital provides substantial funding for scaling and rapid growth but often demands significant equity and control, along with high accountability (Gompers & Lerner, 2004). Balancing these options depends on the startup’s stage, growth potential, and strategic goals.

When selecting outside investors, key criteria include shared vision, industry expertise, value-added capabilities, financial strength, and reputation. Aligning on strategic direction and establishing trust are crucial for long-term success (Barney & Hesterly, 2015). For instance, advisors and board members who bring relevant experience can help navigate market challenges and facilitate growth, underscoring their importance beyond mere capital infusion.

Part 2: Reflection on Learning and Application

Throughout this course, I have gained invaluable insights into the multifaceted nature of entrepreneurship. The conceptual understanding of funding sources, valuation methods, and investor roles has informed my approach to managing my startup—a new online radio station. This project, described in my “start up” file, exemplifies the application of lean startup principles—testing hypotheses, engaging with potential users, and iterating based on feedback.

One “AHA” moment was realizing how vital it is to craft a compelling narrative that aligns investor interests with the mission of my venture. The emphasis on shared values and strategic fit has shifted my perspective from simply seeking funds to building relationships with potential partners who can contribute beyond capital—such as mentorship, market insights, or technical expertise. This lesson will influence my future endeavors, whether in launching additional ventures or pursuing entrepreneurial opportunities in graduate studies.

The course also highlighted the importance of balancing financial sources. For my online radio project, I am considering a hybrid approach involving initial bootstrap funding supplemented by angel investment for marketing and technology upgrades. Understanding the pros and cons of each funding avenue enables a strategic combination tailored to the needs of my venture.

Looking ahead, I foresee applying the entrepreneurial mindset and practical tools gained from this course to future jobs or projects. The skills in evaluating business plans, assessing investor compatibility, and understanding valuation are transferable across industries and roles. Moreover, the emphasis on innovation, resilience, and ethical considerations aligns with my broader career goals.

Part 3: The Fish Philosophy in Daily Life

The Fish Philosophy emphasizes playfulness, being present, making someone’s day, and choosing your attitude—values that I have integrated into my daily interactions. For example, I adopt a positive attitude at work by encouraging collaboration and maintaining a sense of humor, which enhances team morale. Additionally, I make an effort to genuinely listen to friends and family, ensuring they feel valued and understood. These small acts create a more welcoming and productive environment both professionally and personally.

References

• Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage: Concepts and cases. Pearson.
• Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945-2966.
• Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons.
• Gans, J. S., Scott, S. N., & Stern, S. (2018). Strategy for startups. Harvard Business Review, 96(3), 44-53.
• Gompers, P., & Lerner, J. (2004). The venture capital cycle. MIT press.
• Napier, S., & Ngugi, K. (2014). The role of angel investors in entrepreneurship. Journal of Small Business and Enterprise Development, 21(4), 530-548.
• Blank, S., & Dorf, B. (2012). The startup owner's manual: The step-by-step guide for building a great company. K&S Ranch.
• Hannan, M. T., & Freeman, J. (1984). Structural dynamics of organizational populations. American Journal of Sociology, 89(3), 634-664.
• Reynolds, P. D. (2002). Anatomy of new enterprise growth. Cambridge University Press.
• Shane, S. (2003). A general theory of entrepreneurship: The individual-opportunity nexus. Edward Elgar Publishing.