The subsequent issue entrepreneurs should confront is whether or not their ways can serve the enterprise over the long term. the problem of property is particularly vital for entrepreneurs who are riding the wave of a brand new technology, a restrictive change, or the other change exogenous to the business that creates things during which offer will not continue with demand.
Entrepreneurs who catch a wave can prosper at the get-go simply because the trend is on their side; they're competitors not with each other but with ex players. As market imbalances disappear, therefore do several of the erstwhile highfliers who had ne'er developed distinctive capabilities or established invulnerable competitive positions. Wave riders should anticipate market saturation, exacerbating competition, and also the next wave. They need to abandon the me-too approach in favor of a new, a lot of sturdy business model. Or they will be ready to sell their high-growth businesses for handsome costs in spite of the dubious long-run prospects.
Such forward thinking is an associate exception. Entrepreneurs in speedily growing firms usually don’t contemplate exit ways seriously. Inspired by the short success, they still reinvest profits in unsustainable businesses till all they need to be left is recollections of higher days.
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Entrepreneurs who begin ventures not by catching a wave but by making their own wave face a special set of challenges in crafting a property strategy. they need to rest on their initial strength by developing multiple strengths. new ventures sometimes will not afford to initiate on each front. Few start-ups, for example, can expect to draw in the resources required to promote a revolutionary product that needs radical advances in technology, a brand new producing process, and new distribution channels.