From startup to launch there are many factors influence entrepreneurs how they look at growth horizon. The entrepreneur’s innovative skills are one of the measure of growth how much innovative they are, the entrepreneurs look at their innovative idea as first of the growth influencer, the success of idea determine the valuation of business and its growth. Even though the innovation is important but once it established the growing in the new markets and expanded business operation influence how entrepreneur look at growth. The McKinsey three horizon methodology gives a good start to look at the growth horizon. An innovative idea always sustains the growth potential but future challenges faced after the innovation influence the growth and revenue generation ability. The company transition is another measurement factor of the growth horizon which influence the entrepreneur’s growth perspectives could be negative or positive. Organizations in transition stage see an unstable graph where some experiments are successful but some strategies do not work. The third most influential factor which entrepreneur look at the growth horizon in their business model is emergence of new technology or idea which never existed before. The third influential factor considered as threat to the growth of entrepreneur or open up a new door ways of growth depending on how an entrepreneur look at it from growth standpoint. The market itself determines the success and growth The great marketing strategy is a factors which payoff in long run what marketing strategy an entrepreneur adopt and how implemented will have most influence on the growth horizon. In business world entrepreneurs look at the leadership team as the influence on growth horizon, the entrepreneurs know that a great team with prior experience knows the challenges and assure the growth and success to a great extent. The other key factors which are equally important are company culture, continues scalability, maintaining core values and performance evaluation. The entrepreneur’s pathway to look at the growth horizon are influenced by management marketing and money.
Generally, the management seek moderate growth rather than rapid (ACs, parson & Tracy. 2008). Growth performance are subject to market competition, business conditions. The market development by finding customers, product feature, pricing with regards to goods and services firms incur cost to construct market demands (Crick & Spense, 2005). Lack of access to capital is a big constraint to efficient utilization of resources.
The growth stage itself comprises difference phases such as growth through creditability, decision, delegation, coordination and collaboration. Each phase moves to the levels of growth to achieve and apply to the stages of existence, survival, success and resources. Characterized by size and complexity the all three horizon in first para must be addressed for smooth transition. The factors affecting the growth of new venture are an entrepreneurs’ individual traits, the entrepreneurs in the venture skillset adds to the growth of a venture where learning from each other experience. The strategic factors must be addresses for the growth of ventures. Industry, marketing, and managerial experience help to build a strategic framework for growth in the competitive environment.
It is in the midst of company success to combine the gain and growth to retain advantage of venture capital by managing the resources to eliminate the inefficiencies which actually due to the growth for smooth transition from one phase to other to engage resource in strategic way. Resources are various in nature financial which includes cash and borrowing power, personnel resources includes the quality of team, system resources the architect and sophistication of the IT infrastructure, and business resources which deals with customer and supplier relation, operation, manufacturing and distribution. The resources enable the entity for smooth transition. Every growing stage the more strategic planning is require to utilize the resources effectively and efficiently. The continuous evaluation and independent assessment of resources provides a higher probability of transitions among the various stages of the growth.
The growth horizon is the combination of influential factors and resources. An entrepreneur of any venture setup must be able to consolidate the resources with growth factors to address the growth horizon in new venture. New venture access to capabilities are affected by the venture size, alliances, investment, marketing and technological capabilities. Industry growth rate and market niche must be considered when addressing the growth horizon of a new venture.
The strategy of two types Generic Strategies and Grand Strategies. The generic strategy deals in organization expansion in areas like cost leadership, differentiation ion and focus. Grand strategies provide direction in developing growth strategies, stability and defensiveness. The growth strategy splits further into concentration, integration and diversification. The resource may be existing with the company or acquired from outside. The broad category of resources are money and personnel. The resource is allocated on corporate objectives, goals and budgetary requirements. The new venture addresses the transition in growth horizon in the area of scarcity of resources, generating resources and misappropriation of needs. The integrative growth strategies are horizontal means buying the competitors business, backward integration means buying your supplier business. Growth means the new employee will be hired, management will be more decentralized, increasing market share and additional capital from shareholders. In conclusion the McKinsey three horizons are maintain core business, nurturing emerging business transitions and create new business. The influential factors are money, management and marketing.