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1、Exhibit 2 KEY FACTORS FOR SUCCESS OF INNOVATIVE START-UPS Ideas . Degree of innovation . Scope . Patent Capital . Availability/amount . Needs/ r esponsibilities . Exits for investors People . Inventors . Entrepreneurs . Team members Traditional service providers . Attorneys . Patent lawyers . Tax co
2、nsu ltants/ accountants . Market researchers Network and exchange . Coaching . N etworking . Team building . Innovative service provider Venture capitalists H eadhunters Angel investors High-tech start-up consultants 1. THE ROUTE FR OM CONCEPT TO COMPANY New, innovative companies generally try to gr
3、ow f rom start-ups into established companies within 5 years. But they can seldom finance their activities alone along the way. Rather, they are dependent on pr ofessional investors with considerable financial clout. For entrepreneurs, financi ng is a critical question the business plan must thus be
4、 considered from the point of view of potential investors right from the outset. 1.1. Success factors Successful companies arise from a combination of five elements (Exhibit 2. 1. No business concept, no business Having an idea is just the beginning of the creative process. Many entrepreneurs are in
5、itially infatuated with their inspirat ion, losing sight of the fact that their idea is the point of departure for a long process of development which must face and withstand tough challenges before it can enjoy financing and market success as a mature business concep t. 2. Money matters Without som
6、ebody who invests money into the idea to gr ow it into a viable business, this business will never become a reality. From e arly on, therefore, much attention must be paid to convincing investors to pro vide the necessary funding. 3 Exhibit 3 STAGES OF START-UP DEVELOPMENT Business idea generation B
7、usiness plan preparation Start-up and growth Establ ished company Interest of investors Financing decisions Exit of initial investors3. No entrepreneurs, no enterprise Growing new firms is not a one-person job. It can only succeed with a team of, usually, three to five entrepreneurs wh ose talents a
8、re complementary. Putting together well-functioning teams is a dif ficult process one that takes time, energy, and an understanding of human nature. Do not lose any time in putting your team together and work on perfe cting it throughout the entire start-up process. The characteristics of a high-pe
9、rformance management team are discussed in more detail in section 6.3 of thi s Guide. 4. Traditional service providers will help you clear the first hurdles Yo u will often need the advice of professional service providers, such as patent l awyers, tax advisors, and market researchers - especially a
10、t the beginning. Ge tting the right information early (e.g., for registering a patent can have conse quences for later success or failure. 5. Strong networks are a "shot in the arm " for every new company Professional guidance for potential entrepreneurs thr ough a network of sponsors, ent
11、repreneurs, venture capitalists, and service pr oviders is decisive in transforming viable ideas into real companies. Prime exa mples for such regional networks can be found in Silicon Valley and the Bosto n area. 1.2. Stages of development The typical progression of the start-up and development of
12、growing companies into established firms can be subdivided into three stages. The end of each stage serves as a milestone for venture ca pitalists by which to gauge the status of their investment. Being familiar with each stage and the challenges it poses may spare you wasted energy and disa ppointm
13、ent. Please note, however, that the three stages in the development o f a functioning start-up do not match the three phases in the development of a business plan within the framework of this competition (see Exhibit 3. If yo u intend to be successful, this start-up process should influence both you
14、r acti vities as the initiator of a business concept and your path toward forming you r own company. To a large extent, it is the demands of investors that will det ermine how you must approach the individual stages of the start-up. 4 Stage 1: Business idea generation The beginning is the inspiratio
15、n your solution to a problem. It must be evaluated to determine if it delivers an actual custome r value, whether the market is big enough, and just how big it will be. The id ea itself has no intrinsic economic value. It acquires economic value only after it has been successfully transformed into a
16、 concept with a plan and impleme nted. You will need to start putting together your team as soon as possible, fi nding partners who can develop your product or service until it is ready for m arket (or at least until shortly before. In the case of products, this stage usu ally involves a functioning
17、 prototype. You will most likely have to do without v enture capital during this stage. You will still be financing your plan with your own money, help from friends, perhaps state research subsidies, contributions from foundations, or other grants. Investors refer to this as "seed money," as your idea is still a seedling, not yet exposed to the harsh climate of competit ion. You
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