Launching and Growing Entrepreneurial Ventures

FEED Resource Recovery FEEDs source of competition in the short- and long-term The major source of competition for FEED is their introduction of a decentralized program, as most of the huge manufacturers of waste management have ignored the small market segment including grocery markets. Therefore, this targeted strategy in focusing only on the small segment of the industry and starting the decentralized anaerobic program. In addition, Europe also has targeted on the extensive food waste anaerobic program.

Therefore, on-site design incorporation will extremely be appreciated because of the improving green technological innovation and fuel costs. FEED has rightly targeted to build in the on-site decentralized design, which in the long-term can be applied in any organization or business sector. Since, the current natural technologies are becoming extremely expensive for the small-scale entrepreneurs to adopt certain technological innovation. Moreover, the other technological innovation has used the transportation add-on to transport waste from and to the organization for production of energy and organic fertilizer.

However, developing oil/energy costs has frustrated most of the small enterprise proprietors to install the food waste management system for energy and organic fertilizer production. Therefore, apart the expected source of competition can be its small business and on-site design in particular. Why venture capitalists want this business The deal has outlined a growing interest and complexity in the venture capital sector. Rich private -investors and family entities seek to invest in this business because of its high-growth potential, both locally as well as overseas.

Shane and Ryan are offering a fresh business venture, which has promised to fill a niche in the market. Venture capitalists want to fund this project based on its uniqueness and the fact that it cannot be easily replicated. Shane and Ryan can patent or trademark their technology and service to give their venture a room to gain traction and market share (Kurtz & Boone, 2011). Assume you are a venture capitalist. Determine whether you would invest now and what questions would be on your mind.

Assuming that I am a VC, I would invest in the project because I wish to increase the value of my investment in the company. I might ask myself questions like; what is the market potential for this venture? What is the likely market size? What is the projected rate of return? This innovative venture can create an entirely new industry. Therefore, it has the possibility of accomplishing high growth rates than ventures that focus on recognized marketplaces in which there are competitors.

I am convinced that Shane can deliver on his plan and is establishing a multimillion-dollar company. Shane displays that he has essential expertise and skills. As a VC, I would look for experience in managing and building growth, as well as the ability to hire top talent. Shane has confirmed that the company will target a vast, addressable market opportunity. As a VC, " huge" means a market that can produce $1 billion dollars or more in earnings.

In order to get the huge profits that I would anticipate from this investment, I would generally want to ensure that FEED has a possibility of growing product sales worth millions of dollars. If the market size is large, it will serve a greater chance of a business sale, making the company even more attractive for me as I look for an exit strategy from the venture. Preferably, the company will develop fast enough for Shane to take first or second place in the marketplace (Allen, 2012).

Should Shane and Ryan approach family and friends? What are the issues they would face from family investment Taking money from family and friends is risky. Family members and friends will inevitably claim they are giving Shane and Ryan money for their business. Because family/friend investments are made in an informal manner, misunderstandings can emerge concerning what the friends or family expect as a pay off. Shane and Ryan might look at is like a loan, which they may pay back with interest.

On the other hand, friends or family members might look at it as a business whereby they can receive an ownership interest or stock in the venture. Such confusion can have adverse legal impacts down the road. Seeking money from family and friends is an appropriate funding solution for Shane and Ryan, as it is a small start-up business. Ideally, banks will fear lending to such a business with no evidence of successful trading.

Although viewed as a last resort when seeking funding, borrowing money from family and friends remains an appropriate funding option for Shane and Ryan. This must be based on one rule: Shane and Ryan must treat them.