Possibility of New Venture Formation
(Factors making it possible to create a new venture)
Although the desire of new venture formation derived from the individual’s culture,
subculture, family, teachers and peers needs to be present before any action is taken, the
second feature necessary centers around this question “What makes it possible to form a
new company?”
Formal education and previous business experience give a potential entrepreneur the skills
needed to form and manage a new enterprise. Although educational systems are important in
providing the needed business knowledge, individual will tend to be more successful in
forming in fields in which they have worked. The government also contributes by providing the
infrastructure to help a new venture.
The market must be large enough and the entrepreneur must have the marketing know-how to
put together the entire package.
Finally, financial resources must be readily available. Although most start-up money comes
from personal savings, credit, and friends, but there is often a need for additional capital. Risk-
capital availability plays an essential role in the development and growth of entrepreneurial
activity.
The heart of your business success lies in its marketing. Most aspects of your business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions and sales. Marketing is a process by which a product or service is introduced and promoted to potential customers.
Following are the Five Points.
- Without marketing, your potential customers may never be aware of your business offerings and your business may not be given the opportunity to progress and succeed. Using marketing to promote your product, service and company provides your business with a chance of being discovered by prospective customers.
- The success of a company often rests on a solid reputation. Marketing builds brand name recognition or product recall with a company. When a company reaches the high expectations of the public, its reputation stands on firmer ground. As your reputation grows, the business expands and sales increase.
- Marketing also fosters an environment in the marketplace for healthy completion. Marketing efforts get the word out on pricing of products and services, which not only reaches the intended consumers, but also reaches other companies competing for the consumers’ business.
- Although marketing is hugely important for a business to succeed, it can also be very expensive. In its first year, a company might spend as much as half of its sales on marketing programs.
- Once your product, service or company gets on the radar screen of your prospects, it increases your chances that consumers will make a purchase. As awareness becomes a reality, it is also the point where new customers start to spread the word, telling friends and family about this amazing new product they discovered. Your sales will steadily increase as the word spreads.