COMM 103 Chapter Notes - Chapter 15: Funding Of Science, Capital Asset, Cash Flow
3 Feb 2014
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Document Summary
Assessing the financial and market risk associated with a venture is critical to the overall evaluation process of a business. Key to assessment approach lies in the search and identification of fatal flaws which could potentially derail a venture in its early stages: eg. Inadequate pricing models, undercapitalization, weak management competencies, insufficient marketing research initiatives, poor understanding of industry configuration and market segmentation, or the absence of a well-focused execution strategy. Uncertainty associated with the commencement of a business venture is unavoidable. The less an existing business and its structure can be leverages in support of the new opportunity, the higher that uncertainty becomes. Utilization of a proven business model or turnkey operation, such as a franchise, can assist in mitigating risk. Absent of any proven business model, exposes entrepreneurs to the greatest risk and uncertainty. It is true that with success there is a considerable reward. Mitigating uncertainty and risk is all about planning.
