Robert Ochtel’s Blog

An Experienced Approach to Venture Funding

Entrepreneurs, You Need to Get the Attention of Your Investors within the First Three Slides to Secure Funding

When meeting potential investors for the first time entrepreneurs need to quickly secure their attention.  Although, the standard thinking is that you have an hour, with 20 minutes to present and 40 minutes of questions, you really only have a few minutes to secure their attention and hold their interest. As such, if you do not secure your potential investors attention within the first three slides of your presentation, you will not secure funding.  Why, because like with any presentation, especially in the case of potential investors, if you do not secure their attention quickly, you risk the likely hood of turning them off completely to your investment opportunity.  So, as an entrepreneur looking to secure funding from third party investors, you only have three slides and a few minutes to secure their interest.  This includes, defining the opportunity, describing the problem and outlining your solution.  If done appropriately and succinctly, you will secure your potential investors’ attention for the next hour.  If not, your investors will turn off and move on to thinking about other potential investment opportunities.  So remember, you need to secure the full attention of your potential investors very quickly, or you risk the losing them and your ability to securing funding altogether.

Define the Opportunity

When presenting to investors, you first need to define the opportunity to be able to get your investors’ attention and their “buy-in” that your target customers will buy and use your technology, product or service offering.  This means you only have one to two minutes to sell the opportunity to your potential investors.  With the complexity of many product offerings, you need to focus on “tugging on the emotion” of your potential investors.  How would the customer use your technology, product or service offering?  This can often best be described with an example application.   This approach will get your investors attention, as they will be able to see how customers can use your technology, product or service offering.  As such, you are ultimately describing the end market application through the customers’ eyes.  This approach will allow your potential investors to empathize with the customer and better understand both the application and the opportunity that exists for your technology, product or service offering.  By creating the ability for your potential investors to understand investment opportunity through your end customers’ eyes, you quickly be able to create a lasting, positive impression in the minds of your investors, securing their interest to continue listening to your investment opportunity with intrigue and interest. 

Describe the Problem

Once you have defined the investment opportunity in the minds of your potential investors, you need to succinctly describe the problem. The “problem” is the opportunistic need you are solving with your technology, product or service offering. This problem description again needs to be clear in the minds of your potential investors. As such, they need to believe that you are serving an appropriate strategic opportunistic need in the market. So, take the time up front to properly describe the problem in terms that all potential investors can understand.  This will move these same third party investors one step closer to understanding the investment opportunity and again provide them one more time to see the investment opportunity from the “market needs” side of the equation and not from the technology, product or service “provider’s side” of the equation.  By being able to quickly and properly describe the problem from a “market needs” approach you will again be standing in the shoes of your potential investors and answering their questions – and at the same time allowing them to come to your conclusions on their own. This is the “best” way to approach investors from a “problem definition” point of view.  If they believe there exists a problem in the market, then they are more likely to believe in your solution.  Now, you are 80% there in securing their interest in you, your start-up company, and its technology, product or service offering.

Outline Your Solution

Finally, as an entrepreneur, describing your potential investment opportunity, you need to outline your solution to the problem you just portrayed.  This description needs to not only succinctly outline your solution, but it needs to outline the benefits of your solution in the market over any and all other solutions in the market.  Remember you are trying to quickly secure the interest in your technology, product or service offering from your potential investors, so they need to be able to quickly understand, in their minds, your solution and the competitive advantages it offers in the market.  So, as an entrepreneur you need to not only outline your solution, but you need to appropriately describe all of its competitive advantages and associated utility to the consumer or end user.  By doing this, you are making sure that your potential investors again come to the same conclusions that you have, and that they believe your start-up company offers a solution that provides a long term competitive advantage in the market.  So, properly outline your solution to your investors, as once you convince them that you offer “the solution” for the “problem” you are solving, all follow-on information provided during your presentation is now just back up support materials to justify the potential investment opportunity.

As an entrepreneur, typically you have an hour to present in front of sophisticated investors (e.g., venture capitalists).  This generally consists of a twenty minute entrepreneurial presentation and forty minutes of questions from these same potential investors. In reality, though, you only really have a few minutes to secure potential investors’ attention. To properly do so, you actually need to get their attention within the first three slides of your presentation by defining the opportunity, describing the problem, and outlining your solution.  If done properly and succinctly, you will secure their attention and the interest of your potential investors.  If not, your investors will “turn off” and move on to thinking about other investment opportunities.  So, as an entrepreneur, remember, you have need to secure the full attention of your investors quickly, or you risk the losing them and your ability to securing any funding from potential investors altogether.

This information was taken from Robert’s new book: “Business Planning, Business Plans and Venture Funding – A Definitive Reference Guide for Start-up Companies”.  Available at www.amazon.com.  For more information on the book go to www.carlsbadpublishing.com.

May 3, 2010 Posted by | Competition, Customers, Execution, start-up, Venture Capital, Venture Funding | , , , , , , , , , | Leave a comment

Entrepreneurs, No Matter Where You Start with Your Business “Concept” or “Idea”, Your Final Product Offering Will Often Be Quite Different

Many times entrepreneurs start with a business “concept” or “idea” with little or no real knowledge of the market, their competitors, potential strategic partners or the customer requirements. Accordingly, the genesis of an entrepreneur’s business “concept” or “idea” can be based on many different things, including a hunch, a gut feeling, a discussion with a friend or colleague, or even some real market-based experience.  Many times, this “concept” or “idea” initially envisioned by the entrepreneur is correct in terms of the underlying supposition regarding the market need or problem they are trying to solve.  But in the end, the final configuration of their product offering is often very different than their original “concept” or “idea”. The reason for this is that the market realities necessarily dictate the final configuration of a start-up company’s business “concept” or “idea”. Therefore, entrepreneurs often end up with a substantially different product offering than they originally begin with.  This is not a bad thing, and ultimately often results in a much higher level of success in the market.   This article addresses the underlying reasons that an entrepreneur’s original business “concept” or “idea” changes as they become more familiar with the realities of the market.  In the end, the result is a better final product offering that has a much high potential for success in the market.

Review the Markets

With the instantiation of their start-up company and their associated business “concept” or “idea”, entrepreneurs often have a target market in mind for their final product offering. From the beginning, this target market is their primary focus and often they are not to be dissuaded from their single market focus.  This myopic approach to looking at the market(s) is often a big mistake and can result in a failed start-up company. As such, many of these same entrepreneurs often forgo the opportunity to review all the potential market opportunities that can be addressed with their technology, product or service offering.

A much better approach is for the entrepreneur is to step back and review all potential markets from the 30,000 foot level.   With this level of market-separation, the entrepreneur can now take into consideration all of the other potential markets that may be complementary or supplementary to their initial, primary target market.  This approach of reviewing all of the potential markets available for the entrepreneur’s product offering is invaluable for many reasons, including:

  • It allows the entrepreneur to examine the underlying characteristics (e.g., size, growth, competition, etc.) of their primary target market and all other potential markets of interest on their individual merits,
  • It provides the entrepreneur with the ability to identify other new, potential revenue generating opportunities,
  • It provides a market-based approach for the entrepreneur to prioritize the necessary features, functions, and capabilities of their final product offering according to the market needs,
  • It allows the entrepreneur to prioritize all of their potential markets into primary, secondary and tertiary market opportunities, and
  • It provides the entrepreneur with necessary information to determine which markets will provide the highest potential return on investment for their start-up company.

This high-level market analysis is invaluable, as it provides the entrepreneur with the necessary knowledge to make an informed decision on bringing their technology, product or service offering to market.  Having now identified which target markets make sense for their product offering, the entrepreneur can now prioritize these same market opportunities appropriately.  As often is the case, from this high-level market review, the entrepreneur more often than not decides to target another, different market than they originally intended as their initial primary market focus for their start-up company’s technology, product or service offering.  Consequently, this change in market focus often drives the entrepreneur to develop additional and/or different features, functions, and capabilities for their final product offering than originally envisioned at conception. This is a good thing, as this enhanced final product offering can often support multiple revenue streams and a substantially higher return on investment than originally anticipated.

Study the Competition

Often, an initial business “concept” or “idea” by its very nature is half baked. The reason for this is that there is little or no market reality integrated into this initial business “concept” or “idea”.  Therefore, to get these same market realities into the features, functions and capabilities of their product offering and to further develop their start-up company’s business “concept” or “idea”, the entrepreneur must study their competition.

To most entrepreneurs the thought of developing a competitive analysis sounds like a difficult and painful task. More often than not, these same entrepreneurs do not want to spend the time necessary or the due diligence effort required to analyze the competition and their product offerings.  While it is true that developing a thorough competitive analysis is a difficult task that can take a significant amount of time, it can very beneficial to the entrepreneur and their start-up company.  Some of the benefits of developing a complete competitive analysis include:

  • Identifying all the necessary features, functions, and capabilities of their start-up company’s product offering. 
  • Defining the key features, functions and capabilities that differentiate their product offering to that of their competitors.
  • Determining how to position their product offering against their competitors based on these same defining features.

The end result is that through the development of a thorough competitive analysis the startup company’s final product offering is often much different than that of the entrepreneur’s original business “concept” or “idea”.  But, again, this is okay, because this same entrepreneur and their start-up company now has a product offering that provides a competitive advantage in the market and at the same time provides significant value to the end customers.

Identify Strategic Partners

Most start-up companies go to market with a core technology, product or service offering.  At the same time, from the customers’ point of view, this core technology, product or service offering is often “incomplete” and many times requires one or more complementary technologies, products or services to make it a “complete” product offering to properly service the market.  Therefore, to develop a “complete” product offering, it is often necessary for the entrepreneur to identify potential strategic partner candidates that can provide the necessary complementary technology, product or service offerings. These strategic partners can range from hardware providers, to software developers to service partners, etc. By identifying the appropriate strategic partners, the entrepreneur is taking the proper initiative to make their initial business “concept” or “idea” into a “complete” product offering, further ensuring their success in the market.

Finally, take the necessary time to identify and analyze potential strategic partners. Remember, great strategic partners will add significant value to your start-up company beyond their technology, product or services.  In addition, take the time to also consider their market position, customer base and channel access.  These items can add significant value to your start-up company and its ability to secure and create a long term defensible position in the market.

Talk to Your Customers

All of the market research and analysis in the world does not mean much unless it is verified with your start-up company’s customer base.  Also, it is this customer verification process that many times causes a start-up company’s final product offering to vary significantly from its initial business “concept” or “idea”. What an entrepreneur initially believes are both important and necessary features, functions, and capabilities for their product offering are often much different from the end-customers point of view.  This is a significant point, as often, entrepreneurs never talk to their customers and therefore do not really understand what is important to their customer base.  Obtaining customer feedback is invaluable to an entrepreneur and to their start-up company.  It not only allows the entrepreneur to validate or invalidate their initial business “concept” or “idea”, it provides them with the ability to prioritize the necessary features, functions and capabilities of their product offering. Therefore, by talking to their customers, entrepreneurs often find out that their final product offering will be much different than originally envisioned at the business “concept” or “idea” stage.  This is necessarily a good thing in that it provides the entrepreneur and their start-up company with a final product offering that targets the needs of their target customer base.

A business “concept” or “idea” is only the first step in the development of a valuable product offering.  As often is the case, a start-up company’s final product offering will be much different than the entrepreneur’s original business “concept” or “idea”. This is necessarily part of the process of developing a product that addresses a market need, and at the same time provide a long-term, sustainable competitive advantage in the market. So, as an entrepreneur you need to review the markets, study your competition, identify strategic partners, and talk to your customers.  Your start-up company’s final product, although much different than your original business “concept” or “idea”, will be much more valuable to your customers and at the same time put you on a path to success in the market.

This information was taken from Robert’s new book: “Business Planning, Business Plans and Venture Funding – A Definitive Reference Guide for Start-up Companies”.  Available at www.amazon.com.  For more information on the book go to www.carlsbadpublishing.com.

August 24, 2009 Posted by | Business Plans, concept, Customers, Idea, start-up, Strategic Alliance, Target Markets, Venture Capital, venture finance, Venture Funding | 2 Comments

Entrepreneurs, “The Audacity of Hope” is Not a Path Forward for Securing Funding and Ultimate Success

Most entrepreneurs engage in the development of a start-up company to fulfill their hopes and dreams of being their own boss of a successful company and potentially becoming rich. This is the American dream and the primary reason America remains a powerhouse of both job and wealth creation in the world. At the same time, I often hear first time entrepreneurs say “If I only had a million dollars then I would be able to develop a successful start-up company.”  This hope is based on the false premise that money by itself will solve all of the problems of their start-up company.  Like in life, money does not solve your problems, and in business money will not necessarily make your start-up company successful.  Case in point, Teledesic was a start-up company founded in the 1990s to build a commercial broadband satellite constellation for providing Internet services. Teledesic originally planned on building a network of 840 active satellites and received multiple billions of dollars of venture funding only to officially suspended operations in October 2002.  As with Teledesic, the failure of any start-up company is inevitably not a money issue, but the combination improper planning, inept execution, and the inability to get market traction.  The misplaced “audacity of hope” that securing funding alone will solve all of your start-up company’s problems, is really based on an entrepreneur’s unrealistic expectations and unwillingness to do the hard work required to make their start-up company successful.  This article outlines the three things all start-up companies need to do on their path to securing funding and to ultimately make themselves and their start-up companies successful.

Dare to do Business Planning to Facilitate Funding Success

The most important thing an entrepreneur needs to do before they write their business plan and then go out to engage potential investors for the purpose of securing funding is to engage in business planning.  Yes, you need to first begin your start-up business by doing the appropriate amount of business planning.  Business planning, as investors know, is what differentiates successful start-up companies from unsuccessful start-up companies.  In addition, this is where most entrepreneurs fall short.  There are two primary reasons for this, including the following:

  • Entrepreneurs either chose to ignore, or lack the desire to put in the required effort to do business planning. They do not want to do the unavoidable hard work on their way to developing an investor quality business plan, including, the due diligence, research and overall planning that will ultimately define their start-up company.  This lack of desire to do this hard work will ultimately hurt you and your start-up company. 
  • Entrepreneurs do not have the proper backgrounds or do not have an understanding of the importance of business planning in the road to developing an investor quality business plan. In this case, again, a lack of knowledge can hurt you and your start-up company.

Whatever their underlying reason, entrepreneurs need to understand that the business planning exercise is where all of the required business plan details are formulated, developed and finalized.  Business planning is where you acquire the required knowledge regarding your proposed business proposition.  From the target markets, to competitor positioning, to the projected financial returns, this is where you become an expert in both your product offering and your business. By not engaging in the required business planning, in the near term, you will not impress your investors with the knowledge required to secure funding.  In addition, in the long-term, not knowing your competitors or the markets will not allow you, as an entrepreneur, to maximize the return on investment for your start-up company and for your investors. Therefore, dare to plan, as it will provide you with the necessary knowledge to secure funding and facilitate your start-up company’s success in the market.

Flawless Execution will Drive Success

There are many, many things that need to be accomplished for a start-up company to be successful.  In all cases, for any given start-up, there are too many things to do and not enough time to do them.  This is why the focus on flawless execution will help drive your start-up company to success.  Focusing on executing at all levels, and across all disciplines of your start-up enterprise is the lynch-pin that will drive success.  Therefore, as an entrepreneur, you need to properly map out your targeted, significant milestones and then hit these milestones with flawless execution.  Time is everything for your start-up company, and making sure that you execute in a timely manner will drive the ultimate success of your start-up company.

Potential venture investors also necessarily want to see flawless execution and that you are hitting your milestones in a timely manner.  This ultimately increases the value of your start-up company. In addition, nothing provides investors with more confidence in a start-up company’s management team than the timely execution of significant, value added milestones.  This is a big differentiator for start-up companies. As most investors know, for start-up companies, everything always takes twice as along and twice as much money.  Hence, the lack of execution, wastes both invaluable time and investors’ monies.  Therefore, clearly define achievable and significant milestones and then work diligently to execute and deliver.  This will impress investors and at the same time drive your start-up company to success in the market.

Market Traction a Final Key to Success

Achieving market traction is your start-up company’s final key to success.  Remember you are not in business to just to develop an interesting and unique technology, product or service offering.  You, as the entrepreneur of a potentially successful start-up company, are in business to acquire paying customers. Therefore, securing paying customers and achieving market traction early is a key to any successful start-up company.  To achieve this market traction means that you need to call and then engage with customers early. They need to know that your start-up company is out there in the market and that in addition you offer “value” to their end market application. 

Securing customers and acquiring early market traction, even before securing funding, is often where most start-up companies fail.  They have done their planning, have executed flawlessly, but they often fail to engage with their target customer base and secure customers.  This will not impress your potential investors.  One of the first questions these same investors always ask is whether you have any customers or interested customers. If your answer to this question is that you do not have any customers, then they will want to know who you have talked with and then determine their interest.  Remember investors are risk adverse by their nature and securing market and customer traction early goes a long way to addressing their risk tolerance and ultimately securing funding. This is especially true in today’s tough funding environment. 

Finally, as an entrepreneur,  you need to remember investors need to know that you have a product offering that provides “value” to the market and has the ability to secure customers, and quickly.  Venture investing is all about achieving the highest return on investment in the shortest period of time.  Acquiring paying customers early is the only way to achieve this objective.  Investors know this and therefore they necessarily will focus on your start-up company’s ability to acquire customers and achieve market traction in a timely manner.

“The audacity of hope” is not the path forward to securing funding, nor is it a key to success for you as an entrepreneur of your start-up company. As outlined here, doing the appropriate business planning, executing flawlessly, and then securing market traction are the best avenues forward in securing funding and achieving success for your start-up company. By addressing these three items, you are on the appropriate path to fulfill all of your hopes and dreams through the development of a successful start-up company.

This information was taken from Robert’s new book: “Business Planning, Business Plans and Venture Funding – A Definitive Reference Guide for Start-up Companies”.  Available at www.amazon.com.  For more information on the book go to http://www.carlsbadpublishing.com

August 3, 2009 Posted by | Business Planning, Business Plans, Customers, Execution, Market Traction, start-up, Venture Capital, venture finance, Venture Funding | 2 Comments

Entrepreneurs, Don’t Ignore the “800 Pound Gorillas”

Many times, first time entrepreneurs are enamored by their start-up company’s technology, product or service offerings.  As such, they often ignore the large established players or the “800 pound gorillas” in the market. Instead, they believe that their product offering alone will provide them with the long term competitive advantage that will allow them to gain market share as well as to outpace and out maneuver their competitors. What these same entrepreneurs often forget, or choose to ignore, is that these same 800 pound gorillas have access to deep pockets, a multitude of technologies and resources, and well established sales channels that individually or together can immediately provide them with a strong market position, instantly change the competitive landscape, and in some cases, crush these same early stage start-up companies, by either substantially diminishing their positions in the market or forcing them out of the market all together.  This article outlines some of the reasons why these same entrepreneurs and their start-up companies should not ignore these established market players, or 800 pound gorillas.  It also provides two relevant examples of large market players, Microsoft and Intel, using their vast resources to establish their presence in burgeoning markets, even when they were late to market

Established Players Often Wait to Address Burgeoning Markets

Burgeoning markets, especially those related to technology, often take years to first get established and then grow to a level that will make these same markets of interest to large, established players.  On the other hand, start-up companies often stake their existence on these same burgeoning markets, hoping that they develop rapidly, and at the same time that their technology, product or service offering is not only first to market, but has the ability to secure significant market share within these same burgeoning market spaces.  This all or nothing strategy may be good for a start-up company, but the amount of risk associated with entering a burgeoning market too early, is often much too high for established companies to incur.  As such, many of these same large, established market players, or 800 pound gorillas, often wait until the market develops and then use their market muscle, deep pockets and broad technology bases to first establish and then create their positions in these markets. This wait to play strategy is a low risk approach to determining if a burgeoning market is attractive enough to provide these same large companies with associated return that is in line with the internal hurdle rates established within large corporations. 

Just Because They’re Not Players in the Market Don’t Ignore Them

One of the biggest mistakes that start-up companies make is that they believe that they have the only technology, product or service offering that will be successful in their targeted market(s).  More often than not, they forget about alternative products or substitute product offerings.  In addition, just because large, established companies have not entered their target market space does not mean that these same start-up companies should ignore them.  These same large players have the vast resources and established sales channels to immediately make an impact on an attractive market opportunity. Believe me, if there is a high growth market in which they can make money, these large established competitors will move into this market space and make their presence known, and quickly.  They not only have the resources to make their presence known, in some instances these same large, established companies have crushed their start-up counterparts, even with inferior technology, product or service offerings.  Therefore, it is naïve for entrepreneurs to believe that attractive market opportunities will be theirs for the taking.  In fact, the opposite is true, if the market is ripe for making money, and is large enough to support a number of competitors, the large, established competitors will come, and they will not take mercy on their smaller, resource limited counterparts. These are the rules of a capitalistic market.  So, just because you cannot see these large established players in your immediate rearview mirror, they are there and are often “closer than they appear”. Therefore, as Andy Groove has often said, “only the paranoid survive”, this is not only true for Intel, it is especially true for start-up companies and their technology, product or service offerings.  Be aware, the 800 pound gorillas are just around the corner.

The following are two examples of large established players making their presence known within burgeoning growth markets, even after being late to market in these same market spaces.  

Microsoft and the Emergence of the Internet Browser and the World Wide Web

In the early 1990s, a small start-up named Netscape, founded by a college student at the University of Illinois, had established a strong presence in a new, emerging market called the Internet, or World Wide Web. This technology, developed by the U.S. military in the 1960s, was originally called ARPANET[1] and used only by the academic community as a way to communicate using the existing worldwide computer infrastructure. The limited use was primarily based on the fact that there was no easy way to communicate information using the Internet without using a difficult computer programming language. Netscape, developed a programming language called Hyper Text Markup Language (HTML), which allowed for ease of communication and ability to post information such that it was easily read and readily available to the end user. Now, computer-based communications via packet switching and worldwide computer infrastructure using an Internet browser was viable, and it would allow for businesses to post their technology, product, or service offering information to their customer bases in a usable manner. The Internet explosion began, and Netscape was the market leader.

Sometime later, Microsoft realized it had missed this huge market opportunity defined as the Internet and the HTML-based browser technology that would provide them access to hundreds of millions of customers. Microsoft then set out to establish itself in this market, and at the same time, crush Netscape. This was played out in the press. With its massive amount of resources, market presence, and well-established name, Microsoft started bundling its own browser technology with its Microsoft Windows operating system at the exclusion of Netscape and its browser technology. This put Netscape at a serious competitive disadvantage in the market, since Microsoft would now have its new browser technology installed in every new personal computer in the market. Netscape went to court and the court ruled that Microsoft could not bundle its browser technology and, at the same time, exclude Netscape. But, the damage had already been done. Netscape did not have the resources to compete with Microsoft and was eventually sold to America Online. Microsoft, even though it was late to market, had crushed the competition and established itself in the Internet browser market, with its sheer marketing muscle and ownership of the market channels.

Intel and the 802.11 Wireless Fidelity (WiFi) Market

Intel, the dominate player in personal computer-based microprocessor chips, is a well-known company with a massive amount of resources to compete in emerging markets. In the late 1990s, a start-up company named Atheros had developed a new chipset to address the emerging, short-range wireless technology market called 802.11 or wireless fidelity (WiFi). Originally targeted at 5.0 GHz, Atheros, a Stanford University spin-off, had developed a new disruptive approach of using CMOS silicon technology for their radio frequency (RF) chips. Armed with a strong patent portfolio, Atheros was out to change the wireless market by using standard CMOS fabrication technology to develop their WiFi RF chips, an area that traditionally used the much more expensive BiCMOS technology due to the performance requirements of RF chips. Atheros entered the WiFi market with their leading-edge technology solution and took a strong, market-leading position. Aimed at the growing laptop computer market, Atheros at the time was the clear leader in the emerging WiFi (802.11) market.

Intel, recognizing it was late to market, needed a WiFi chipset solution themselves. Being too late to develop their own WiFi chipset, Intel licensed their original WiFi chipset offering from a third-party chip company, and offered it as part of their product offering for laptops, branding the product offering as “Centrino” in the market place. Because Intel owned the PC market and had the ability to create its own brand name in the market, most consumers believed that Intel had the most technologically advanced and most cost-effective WiFi chipset solution in the market. This was far from the truth; in fact, at the time Intel WiFi chipset was several generations behind the Atheros WiFi chipset solution. This fact did not stop Intel from dominating the laptop computer portion of the WiFi market, putting them in the market leadership position. Atheros eventually went public and did very well, but Intel continues to be the dominate player in the WiFi market due to their strong position in the personal computer microprocessor market.

There are hundreds of examples of large, established companies being late to market or not offering the most compelling, technologically advanced solution in the market and still being a success. What one should remember, as an entrepreneur of a start-up company is that large, established companies have many different ways to enter into and then dominating a new market. In many instances, early entry or a compelling technology, product or service offering are not necessarily the paths forward to success, for these large, established companies. In addition, these same large companies should not be counted out as competitors, even if their market entry point to addressing a given market is not obvious. As has been shown, more often than not, it is these same large, established companies that can immediately change the dynamics of the market due to their market presence, channel ownership, established name, and the massive amount of discretionary resources available to them.  So entrepreneurs be aware, do not ignore the “800 pound gorillas” they can and will change the competitive landscape of burgeoning markets, more often than not, to the detriment of your start-up company.

 This information was taken from Robert’s new book: “Business Planning, Business Plans and Venture Funding – A Definitive Reference Guide for Start-up Companies”.  Available at www.amazon.com.  For more information on the book go to http://www.carlsbadpublishing.com


[1] ARPANET (Advanced Research Projects Agency Network) developed by DARPA of the United States Department of Defense, was the world’s first operational packet switching network, and the predecessor of the global Internet.

July 27, 2009 Posted by | Business Development, Business Planning, Competition, Large Established Companies, Market Traction, start-up, Venture Capital, venture finance, Venture Funding | 1 Comment