Critical Factors for New-Venture Development Uniqueness - A new venture’s range of uniqueness can be considerable, depending on the amount of innovation required during prestart-up. Investment - The capital investment required to start a new venture can vary considerably. Growth of Sales - The growth of sales through the start-up phase is another critical factor. Product Availability - Product availability refers to the availability of a salable good or service, at the time the venture opens its doors. Customer Availability – Venture risk is affected by customer availability for start-up. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Why New Ventures Fail Product/Market Problems Financial Difficulties Poor timing Product design problems Inappropriate distribution strategy Unclear business definition Overreliance on one customer Financial Difficulties Initial undercapitalization Assuming debt too early Venture capital relationship problems Managerial Problems Concept of a team approach Human resource problems © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.