Business Startup

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.

Business Activities: 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

Business Information: Completion of the business start-up step usually will 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.

Assessment:

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?

Return to The Goldsmith Commercialization Model

The Arkansas Small Business Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran’s status, or disability.