The paper "Elevator Pitch in Evaluating Venture Opportunities" is an outstanding example of business coursework. Entrepreneurship is an important factor for economic growth (Robson, Wijbenga and Parker, 2009). The significance of new ventures has led to scholar to search the enablers of venture performance. New ventures’ strategic decisions are fundamental for their success as they represent how these ventures line up their strengths and weaknesses with environmental factors representing opportunities and threats (Robson, Wijbenga and Parker, 2009). Entrepreneurship can be defined as the process whereby people pursue opportunities that will enable them to start their own business.
In order to start a new venture, there are so many things that one needs to take into consideration. An entrepreneur should be creative and should consider factors such as capital for start-up, physical location, customer availability, and time among others (Robson, Wijbenga and Parker, 2009). Creativity allows entrepreneurs to be able to take advantage of new venture opportunities and differentiate their business idea from the competitors. Before starting a business, an entrepreneur is expected to evaluate and analyze venture opportunities in order to ensure that the new business will be successful (Robson, Wijbenga and Parker, 2009).
One way of doing so is the use of elevator pitch. An elevator pitch can be defined as a short description that assists in explaining the purpose of a new venture to a person who has never heard of it before (Leschke, 2013). This paper will discuss if elevator pitch is the best way to evaluate and analyze the effectiveness of a new venture opportunity. When starting a business, an entrepreneur often recognizes the opportunities, gather resources necessary for the opportunities and drive them to completion.
Starting a new venture is not easy (Heinonen and Poikkijoki, 2006). When analyzing venture opportunities, it is important to analyze the industry and the market. This is an important method as it is able to predict the potential of a market and industry sector. It will also enable an entrepreneur to understand the industry life cycle. Industries, as well as products, often move through a number of cycles including birth, growth, competition, shakeout and maturity and decline (Heinonen and Poikkijoki, 2006).
This predicts the maturity of the industry one wants to venture into. Another way to analyze venture opportunity is by use of primary customer profile. Customer profile information is essential in generating marketing strategy in future and they include age, income level, education, buying habits and physical location of customers (Robson, Wijbenga and Parker, 2009). According to Heinonen and Poikkijoki (2006), the core concept of new ventures is entrepreneurship which entails the exploration, creation and exploitation of the environment. The exploitation of the environment relies heavily on observing market potential and discrepancies. The environment is said to be an important factor that shapes the resource opportunities for new ventures (Pincus, 2007).
For instance, industry growth is said to having a paramount relationship with the growth and expansion of the new venture. Industry growth level represents the extent to which resources are available for new ventures. Industry growth is an environmental factor that should be analyzes in order to determine new venture opportunities. Pincus (2007) suggests that the entrepreneur often looks for circumstances where the enhanced market and industry growth can reduce the effects of adverse competition.
Venture opportunities can also be established by evaluating sources for resourcing new ventures. Resources required by a new venture may be used in areas such as warranting the products, logistics and supply chain management, quality improvement and programs, production process and inventory management.
Heinonen, J and Poikkijoki, S. A 2006, ‘An entrepreneurial directed approach to entrepreneurship education: mission impossible?’ Journal of Management Development, Vol 25, pp. 80–94.
Leschke, J 2013, Business Model Mapping: A New Tool to Encourage Entrepreneurial Activity and Accelerate New Venture Creation. Journal of Marketing Development and Competitiveness, vol. 7, no. 1, pp. 18-26.
Pincus, A 2007, "The Perfect (Elevator) Pitch", Business Week.
Robson, P. J. A., Wijbenga, F and Parker, S 2009, ‘Entrepreneurship and policy: challenges and directions for future research’. International Small Business Journal, vol. 27, no. 5, pp. 531-535.