[xcoolaryan]

found another interesting article --

Attracting Stakeholders to a Start-Up A new business requires resources such as funds for R&D, equipment, marketing, and inventory. These funds are obtained by attracting stakeholders. Financial stakeholders are most at risk - these include banks, bond holders, investors, and venture capital firms. However, employees, customers, and suppliers of a business also are at risk. Employees may not receive some of their pay if the business fails, and they may have given up lucrative positions to which they no longer can return. Customers may find that they are stuck with a non-supported product, and suppliers may lose the opportunity to recoup their development costs or to receive their accounts receivable. Because of the risk of failure, attracting stakeholders is more difficult for a new venture than for an established, successful company.
Minimizing Downside Exposure

One way to make a new venture more attractive to potential stakeholders is to minimize their downside exposure to the fullest extent possible. For example, non-transferable R&D costs can be reduced by using off-the-shelf technology wherever possible. Investment in capital equipment can be made somewhat reversible by using more general machines that can be used for other purposes, thereby enhancing their liquidation value. The initial marketing expenditures can be reduced by marketing to people who are in a position to influence the opinions of many other decisions makers, thus reducing promotion cost. Employee risk can be reduced by using standard tools of the trade so that they easily can be out-placed, and by choosing a location that has many opportunities for the employees should they need to find another job. Customer risk can be reduced by designing a product to use standard components and to be compatible with other products. Taking such measures to reduce stakeholder risk may increase variable costs and compromise the product - this is a tradeoff that must be considered when making such decisions.
Finding Risk-Tolerant Stakeholders

Stakeholders must be found who are willing and able to accept the downside risk. Such stakeholders tend to be diversified, have experience with start-ups, have excess capacity, and be risk-seeking. Diversified financiers are those who invest in multiple businesses. Diversified distributors are those who carry many other products. Diversified customers are those who use multiple suppliers on whom they can fall back if necessary. Those stakeholders who have experience with start-ups are more comfortable with the downside and better understand the potential rewards. Stakeholders with excess capacity incur less opportunity cost and therefore have less risk from participating in the start-up. A engineer who has time in the evening or a manufacturing firm that has upgraded its production capacity are examples of stakeholders with excess capacity. Finally, risk seekers who enjoy the uncertainty associated with start-ups are potentially good candidates for stakeholders; however, if a start-up portrays too strong of a risk-taking image, more conservative stakeholders will be scared away.
Selling Potential Stakeholders on the Venture

Once potential stakeholders are identified, they must be sold on the venture. To do this, the entrepreneur must have faith in the venture and show enthusiasm for it. A record of success helps, but the main thing is that he has honored past promises and has not abandoned a venture in mid-stream when it encountered difficulties. A common problem for start-ups is securing the commitment from stakeholders who are waiting for other stakeholders to sign on first, or "ham and egging". The ideal way to do this is to convince each of the stakeholders simultaneously that the others have signed-on or are very close to signing on. An alternative method is to get a small commitment from one stakeholder and use that to get a small commitment from another and so forth. It helps to have a "bell cow" - someone who has the reputation of being a leader with foresight. When acquiring the commitment of stakeholders, one needs to have a schedule, know what the start-up needs, be able to anticipate and handle objections, and deal with withdrawals after sign-on. A schedule is important so that the entrepreneur can measure whether the stakeholders really have committed to the venture as evidenced by the intermediate milestones. The entrepreneur needs to understand the actual needs of the venture in order to negotiate for that and only that.
Potential stakeholders may voice objections and concerns before committing. Many of these can be dealt with by openly discussing issues such as the "fume date" (the date at which the venture is to run out of cash) and by presenting well-thought-out contingency plans.
Maintaining Stakeholder Commitment

There may be cases in which a stakeholder wants to back-out of a commitment. For example, a talented employee who signed-on to the venture may have a counter-offer to remain with his employer. The entrepreneur constantly must follow up with the stakeholders to prevent such problems and to deal with them when they occur.

[ersubodhverma]

hi guys

i feel good to c so many guys crazy like me who wants 2 create a difference.
guys u can surely get it.
in my opinion we have 2 make a goal first of all.
v have 2 decide where v want 2 c r selves right after 5 or 7 years.
i will give u an analogy and hope u will all b able 2 understand wat i mean 2 say.

A PERSON WANTS 2 GO TO MARKET.
HE WILL DEFINITELY REACH THERE.
1. HE HAs A GOAL (MARKET)
2. IF HE DONOT KNOW WHERE HE WANT 2 GO, SURELY HE WILL END UP GOING HERE N THERE AND AWAY FROM D RIGHT PATH.
3. HE HAS DIFFERENT WAYS(ROADS) 2 REACH GOAL (MARKET).
4. OR OTHER WISE HE CAN MAKE A BRIDGE(MANAGEMENT) BETWEEN HIMSELF AND THE GOAL(MARKET).

make a goal (like arjuna made it for the fish eye)
it should not be flexible otherwise end up in serious trouble
never lose the enthusiasm, keep urself motivated, and remain determined.

this is definitely going 2 help u

[xcoolaryan]

make a goal (like arjuna made it for the fish eye)
it should not be flexible otherwise end up in serious trouble
never lose the enthusiasm, keep urself motivated, and remain determined.

easy to say .. harder to done .....


it's easy to quote / say smting here but ask the people who has followed this path .... it take lot more than determination & enthusiasm to get there ....

[a$$-wise]

Thought to share something with you!

There's gonna be a huge event that any entrepreneur just can't afford to miss.

Networking
Financing your startup
meeting VC

seminars .
everything
at
TIE institute

Check this out: TiE World 2007

[xcoolaryan]

thnkx buddy ....

i received there newsletter but costs r too high for a student .....

still i m trying my best to get there ...

wat abt u ... r u also attending that event

[a$$-wise]

Fees is not much if you look at the opportunity you are getting!
(are you a student? )

On last page I checked Neo2000 is looking for some 300k if you're thinking that high I think some ~5 to 10k wont cost you much.

If you ve a well planned business model I think you(everone) should take this opportunity

For me, I am thinking of attending it. though I have not my b plan ready gotta work on it now

bytheway my old no. is not wokring any more.
I'll soon get a new one & let you know cool ryan!

[Neo2000]

Originally Posted by a$$-wise

Fees is not much if you look at the opportunity you are getting!(are you a student? )
On last page I checked Neo2000 is looking for some 300k if you're thinking that high I think some ~5 to 10k wont cost you much.
If you ve a well planned business model I think you(everone) should take this opportunity

I've got GMAT on Sep 18th so doubt i can take 2days off to attend this. Plus even though I am looking for 30L i'm not sure how it justifies me spending 9.5K +taxes and that too for a 1year membership the benefits of which I have no idea about.

I've always been wary about these events. Let's see.

[a$$-wise]

I think they have postponed it to October 5-6... I am informed via their mails notifications... though they haven't updated the site yet!

I thouhgt its my duty to inform you guys...
its upto you to attend it or not.

[xcoolaryan]

if it 5-6 Oct .... then m not attending ....

coz m leaving for Orisaa for 12 days from 1 Oct ....

Asswise ... if u attend it .. tel me how it goes

[xcoolaryan]

Originally Posted by Neo2000

I've got GMAT on Sep 18th so doubt i can take 2days off to attend this. Plus even though I am looking for 30L i'm not sure how it justifies me spending 9.5K +taxes and that too for a 1year membership the benefits of which I have no idea about.

I've always been wary about these events. Let's see.

Neo ...

I am bit confused .... you are working on / in a startup .... you are trying to raise some serious money (30lk) ...

n still ... u r giving GMAT ( that implies u r going abroad 4 MBA , then wat happened to startup )

correct me if i m wrong