Goldsmith Technology Commercialization Model
Step 10: Business Start-Up
The Business Start-Up activity can be simultaneously exhilarating and frustrating. It is a time to put in place the normal business systems essential to all enterprises such as human resources, accounting, communications, policies and procedures, legal, and planning. It is a time of adjustment related to team building, setting the foundation for a corporate culture, integrating and synthesizing skills and talent into a harmonious organization, and committing inordinate amounts of time and energy to the new enterprise.
Definition: The business start-up step of business development is that period during which business functions (management, production, financing, legal, marketing, and human relations) are initiated by key personnel.
Objective: The objective of the business start-up step is to introduce the enterprise to the market within the parameters identified in the business plan.
Product: The product of this step is an enterprise capable of producing a product that meets technical and customer specifications, satisfies customer expectations, and demonstrates a potential profit.
The business activities common to this step are those necessary to introduce the product to the market, establish a foundation for sound business practices, and implement a growth strategy.
During the business start-up step, the following activities must be completed:
- Establish hiring criteria
- Hire and train core personnel
- Execute limited contracts
- Arrange for next stage financing
- Regularly convene board of director meetings
- Develop business policy and procedure manuals
- Establish control mechanisms for cash expenditures that correspond with the business plan
- Establish a dynamic process for strategic and tactical planning for the enterprise
- Milestones: An Enterprise
Funding Sources: Angel Investor (seed round)
Business Information: Completion of the business start-up step will usually result in knowledge gained from the establishment of business functions, introduction to the market, assessment of market response, and confirmation of profitability, identification of required technical, marketing and business modifications and refinements.
Have you initiated business activities?
Have you established hiring criteria?
Have you hired and trained core personnel?
Have you executed contracts?
Have you arranged for the next stage of financing?
Do you convene regular board of director meetings?
Have you developed a business policy and procedure manual?
Have you established control mechanisms for cash expenditures that correspond with the business plan?
Have you established a dynamic process for strategic and tactical planning for the enterprise?