Grant Seeking in an Electronic Age, Essay Example

In order to obtain financial resources, an entrepreneur must develop a solid business proposal that can successfully attract investors (Mikelonis, Betsinger, & Kampf, 2003). Furthermore, the entrepreneur must also be able to communicate the proposal using a persuasive pitch that can make investors see all of the positive aspects of the proposal while downplaying any negative aspects (Mikelonis, et al. 2003). In order to maintain financial resources, an entrepreneur must be able to deliver promised results to investors consistently (Mikelonis, et al. 2003). This would keep investors satisfied. It is also important to keep a good credit rating for the company (Mikelonis, et al. 2003). This way, the company would be able to make loans easily when necessary.

In selecting which is more important between obtaining and maintaining financial resources, it is more important for an entrepreneur to obtain resources rather than maintain them. This is because a business cannot be started at all without the necessary funding, no matter how well the entrepreneur would be able to manage finances should funds be available. On the other hand, if funds are mismanaged during operations, the entrepreneur can still save the business by rectifying the problem and reassuring investors of their money’s safety. Should some investors pull out; the entrepreneur can still have the ability to find new investors to take their place. Furthermore, once a business gets off the ground and enjoys success, it may even be possible for the entrepreneur to eventually no longer be reliant on invested capital from sources of funding other than the business’ own revenues. Thus, what is most important is being able to acquire the necessary financial resources to start the business.

The business model of an organization is the structure of principles by which the organization operates (Afuah, 2003). It includes all of the assumptions, rationale, and procedures which the organization believes would lead it in its defined conditions of success (Afuah, 2003). The business model is crucial to an organization because it creates basic order in the organization and serves as the framework for all of the organization’s plans. Without a clearly defined business model, the organization would find it very difficult to focus on what it should be doing to achieve success. As the firm grows and improves its processes, the role of the business model is to adapt with the growth and development of the firm. The business model is the means, and not the end of conducting a business, and so no sentimentality should be attached to a model should sufficient evidence point towards its obsolescence or impracticability (Afuah, 2003). As a rule of thumb, a company should stick with its business model so long as the model is producing the desired returns of the business (Afuah, 2003). However, an exception to this is when an opportunity is present that can enable the business to reach greater success through the revision of its business model (Afuah, 2003). In such a case, the firm should consider adapting its model by weighing the risk of the action against the expected returns. A firm must also consider revising its business model to respond to changing developments of the market, or developments in the technology related to its product and market.

References

Afuah, A. (2003). Business Models: A Strategic Management Approach. McGraw-Hill

Mikelonis, V., Betsinger, S., and Kampf, C. (2003). Grant Seeking in an Electronic Age. Longman