The Founder's Dilemmas Essay

Considering the risk and reediness are important factors for a business owner. What happens if the business fails? There are many reasons why startups fail however; the most common are poor management, and business capital. For example, to make a lot of money from a new venture, you need financial resources to capitalize on the opportunities. That means attracting investors that requires relinquishing control and equity of the business, which requires relinquishing control of the business decisions. The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls that can sink a Startup explores the different problems a business owner faces as they open up a new business. The problems range from partners, hiring, investing, and role predicaments.

“Start planning from day one and keep planning throughout the life of your business. Modify your plan as your business grows and as events dictate” (Sullivan 64). Planning is important and as you plan for a small business, it is important to look at the future and modify as needed. This is the reason many companies close their doors, they lack to modify and plan such as a change in technology, and customers’ request according to Sullivan. Steven D. Strauss argues the significance of having a structured business plan. The business plan is a blueprint of the business. The business plan will help analyze any risk and opportunities. Writing a business plan will support the company’s values and mission. The business plan will aid in projected startup cost, projected sales, marketing, and understanding your competition. The business proposal will also help you get the money from potential investors. Writing a business strategy is not only necessary to analyze the business, but vital for success, it will help determine if your business will be profitable. A business plan should consist of the following: Title page, Executive summary, Contents, Business description, Management, Industry description, Competition, Marketing Strategy, Sales forecast, Financial Analysis, Exit Strategy, and Appendix. These subtopics cover different areas that are important to your business; these subtopics will assist in a better understanding of the concept(s) of the new establishment. Having a structured business plan can minimize the risk and lead to potential investors. As the establishment grows, it will be vital to update and re-write the plan, because this will benefit the business and keep it on track. In addition, having crated the roadmap to your business will help acquire the right investors for your business type and or at lease identify any potential strengths, threat, and or