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Report on Entrepreneurship- Bimark Ltd

   

Added on  2020-05-04

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UNIVERSITY NAME Student’s name Student’s IDEntrepreneurship
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Specific startup venture; Bimark ltd, a young company in fashion and design industry that istargeting 15-60 years old market niche Q4 Salient issuesThe most important issue in entering negotiation with venture capitalist is thevaluation of the company shares. This will determine the size of the equity theventure capitalist will get from you company after financing its start up. Thevaluation must be correct such that it does not undervalue Bimark ltd startup ideaeventually leading to a scenario whereby the venture capitalist takes up the lionshare of the company or overvalue the company such that it will be hard for thecompany to receive further assistance from the venture capitalist. (Bloomfield, 2008)Another important issue to be noted by Bimark ltd is the timing of the investment.After securing funding most of them come in trenches tied to certain milestones thecompany would be achieving with time. The milestones must be timed appropriatelysuch that it does not get to a point where the milestones promised were not realisticyet these milestones are tied to investments from venture capitalist that come ininstallments. Therefore the company can find itself in difficult position if it doesnot plan itself accordingly. (Sloane, 2007)Modification of the management team, sometimes after the company or startupsecures investment it the creditors or the venture capitalist may need additionalpersonnel who are their trustees to be included in the management of the companyto ensure that the investment provided is put to the right use. This issue must beaddressed carefully in order not to relinquish certain important roles in the companythat need someone who fully understands the idea of the business. (Bloomfield, 2008)
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