Essay on Onset Ventures
ONSET’s model contains six factors that help the firm locate and invest in attractive opportunities. …show more content…
Third, the business model must be valid before hiring a CEO. Opdendyk’s research showed that if the CEO is hired before the business model is refined, the individual could revert to a model that he/she used at a previous job. By fine tuning a business model before the CEO is hired, the research showed that the incoming CEO can better execute on the plan. While I generally agree with this factor, I also believe that ONSET may be doing itself a disservice by strictly adhering to this principle. An effective business plan requires talented people to effectively work through problems and identify risks. This principle assumes that an incoming CEO will always fall back to a previous business plan. I think this a fairly large assumption as an incoming CEO who has been a successful entrepreneur should realize that each business plan must be tailored to the product and current market conditions. I believe that incorporating a CEO in the business planning process could ultimately add value to the start-up project.
The fourth factor in ONSET’s model is that, “you spend money only to add value as perceived by those individuals providing the next round of