NEW BUSINESS VENTURES
What is a new business venture?
A new business venture is a new entity created to make a profit, where there is a significant degree of uncertainty about the outcome and a high degree of risk of loss or failure.
Why do people start new ventures?
Corporate Explorers and entrepreneurs start new venture to pursue a passion, and/or to improve the income potential of their company or themselves. They are typically individuals who have a greater tolerance for uncertainty and risk.
How is a new venture different from the core business?
New ventures pursue customers or markets outside of the core portfolio. There is a higher degree of uncertainty around the desirability, feasibility, and viability of the solutions proposed by the venture, and the core business may lack the capabilities or capacity to take the solution to market.
Why are new ventures important for a corporation’s growth strategy?
Steve Blank said, “A big company is a permanent organization designed to execute a repeatable, scalable business model,” (think cash cow). As cash cows mature and dry up, new ventures become mission-critical to help incumbents diversify their revenues, thus replacing lost revenues and providing new sources of growth.