Funding the new operation will take a lot of effort on the part of the entrepreneur, since finding and obtaining the necessary funds is not always easy.
That is why it is vitally important that the entrepreneur have a strong and solid business plan as mentioned above to make the process a little has hectic. Facebook is an excellent example of a company that sought out venture capitalists to fund their start-up company.
Working with venture capitalist companies does come with a price; since the majority of the time they are asking for a pretty big stake in the company in which they are investing in. For Facebook they were willing to give up a certain percentage in their company to get the money they needed to grow and expand.
In the final stage of business development the entrepreneur seeks information on how to mature and expand the organization. In this stage the company is trying to get through the challenges of dropping sales, customer retention, and if the organization is doing well enough, how they can increase sales through better service to their customers.
At this point the organization looks to gain a solid human resources department that will help with hiring the right individuals for the company. This is all part of the maturity and expansion phase; Time Warner Cable is a great example for this stage.
When they started the company they offered cable services very well to their customers, but they sought to expand their company by offering other products and services. They soon started to offer cable services to businesses, internet services, phone services, and eventually home security services.
Each stage of developing a business has its own unique aspects which cannot be overlooked or underutilized. Business development is a crucial part of an entrepreneur’s plan for success. Without properly developing the business, there are greater chances of failure; since a strong foundation provides endurance for the organization as a whole.