Entre pre ne urship a nd the Busine ss Pla n

Ky n e So lu t io n s

Jo sé Alfo nso Ta la ma nte s Pa vó n

 Ma ste r’s The sis in Entre pre ne uria l Ma na g e m e nt
Title : Kyne So lutio ns – Entre p re ne urship a nd the Busine ss Pla n
Auto r: Jo sé Alfo nso Ta la m a nte s Pa vó n
Tuto r: C inzia Da lzo tto
Sub je c t te rm s: Histo ry o f Entre p re ne urship , Entre p re ne ur, Entre p re ne uria l Pro c e ss, Busine ss Pla n,
We b De ve lo p me nt, Sta rtup , IT C o nsulta nc y Firm.

1 Ab stra c t
Ba c kg ro und: Sta rting up a b usine ss is no t a n e a sy ta sk; it re q uire s the tra nsla tio n o f a n
id e a into re a lity a nd re q uire s d isc ip line a nd a c le a r g o a l se tting .
Mo re o ve r with the inc re a sing ne e d o f p ro fe ssio na lism fo r o utsta nd ing
we b d e ve lo p me nt a nd info rma tio n te c hno lo g y, the p la n o f a n
e nte rp rise with hig h e nd d e ve lo p me nt a nd lo w c o st is g e ne ra te d .

Purpo se : This the sis ha s a d ua l p urp o se ; firstly it se ts the b a sis o f und e rsta nd ing the
te rms o f e ntre p re ne urship a nd the e nviro nme nt whe re a b usine ss is
c re a te d ; mo re o ve r it e xp la ins the a c q uire me nt o f re so urc e s a nd the
struc ture o f the b usine ss p la n. The se c o nd o b je c tive is to d e ve lo p a p a th
fo r c re a ting a w e b re la te d b usine ss. This d o c ume nt will he lp to e sta b lish
the g o a ls a nd o b je c tive s fo r the p e rfo rma nc e o f the c o mp a ny.

Me tho d: The the o ry p re se nts the re le va nt info rma tio n tha t ha s to b e c o nsid e re d
insid e the firm. Afte r the the o ry a b usine ss p la n wa s c re a te d with the
o b je c tive o f se tting the d ire c tio n o f the c o m p a ny o ve r the ne xt ye a rs. It
is imp o rta nt to me ntio n tha t b usine ss p la ns a re e vo lving d o c ume nts tha t
ha ve to b e up d a te d a c c o rd ing to c ha ng e s in the e nviro nme nt o r
c ha ng e s in the o b je c tive s.

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Ac kno wle dg e m e nts

I wo uld like to e xp re ss my g ra titud e to the p e o p le insid e Jö nkö p ing Inte rna tio na l
Busine ss Sc ho o l, te a c he rs a nd me nto rs fo r the ir g uid a nc e a nd e nc o ura g e m e nt
into d e ve lo p ing a fina l the sis tha t is the fo und a tio n o f a we b d e ve lo p m e nt firm .
The ir insp ira tio n a nd kno wle d g e ha s b e e n inva lua b le in a c c o mp lishing this wo rk.

Sp e c ia l a c kno wle d g e m e nt g o e s to Hé c to r C á rd e na s, a s the firm c o -fo und e r,

fo r his c o ntrib utio ns, insig hts a nd e nc o ura g e m e nt whe n b uild ing this c o m p a ny.

I a m g ra te ful fo r the lo ve fro m my fa mily; Ma rg a rita Pa vó n, C a rlo s Ta la ma nte s,

No rma Ta la ma nte s a nd Ka rla Ta la ma nte s tha t the y a re a c o nsta nt so urc e o f
insp ira tio n in a ll a re a s o f m y life . Tha nk yo u fo r b e ing a lwa ys he re a nd fo r
sup p o rting my d e c isio ns.

Jö nkö p ing Swe d e n 2009-03-19

Jo sé Ta la m a nte s Pa vó n

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 Ta b le o f C o nte nts
1 Ab stra c t ........................................................................................................................ i

2 Intro d uc tio n ................................................................................................................ 1

2.1 Ba c kg ro und ......................................................................................................... 1

2.2 Pro b le m ................................................................................................................ 2

2.3 Purp o se ................................................................................................................ 2

2.4 De limita tio ns........................................................................................................ 2

2.5 O utline o f the The sis ........................................................................................... 3

3 The o re tic a l Fra m e wo rk ............................................................................................. 4

3.1 Entre p re ne urship ................................................................................................ 4

3.1.1 The na ture o f the e ntre p re ne uria l d e c isio n ma king p ro c e ss. ............. 5

3.1.2 Entre p re ne uria l Pro c e ss ............................................................................. 5

3.1.3 Entre p re ne uria l O rg a niza tio ns a nd g ro wth ............................................ 8

3.1.3.1 Entre p re ne uria l O rie nta tio n ............................................................... 9

3.1.3.2 Inte rna tio na liza tio n a s a g ro wth stra te g y .....................................10
3.2 O b ta ining Fina nc ia l Re so urc e s ......................................................................12

3.2.1 Ba nk Lo a ns .................................................................................................12

3.2.2 Inve stm e nts fro m Ve nture C a p ita lists....................................................13

3.2.3 Inve stm e nts fro m Busine ss Ang e ls ..........................................................14

3.2.4 Sha re Purc ha sing b y La rg e r Firm s fo r R&D p urp o se s ..........................14

3.2.5 PIPE (p riva te inve stm e nts in p ub lic e q uity)...........................................14

3.2.6 Fina nc ia l Bo o tstra p p ing ...........................................................................15

3.3 Busine ss p la n .....................................................................................................15

3.3.1 The Busine ss a nd its Fina nc e s..................................................................18

3.3.2 Ra tio s...........................................................................................................19

4 Ap p lie d Kno wle d g e ................................................................................................19

1 Exe c utive Sum m a ry ................................................................................................... 1

2 G e ne ra l C o m p a ny De sc rip tio n ............................................................................... 1

2.1 Missio n .................................................................................................................. 1

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 2.2 C o m p a ny O b je c tive s ........................................................................................ 1

2.3 Busine ss Philo so p hy ............................................................................................ 2

2.4 Ke ys to Suc c e ss................................................................................................... 2

3 C o m p a ny Pre se nta tio n ............................................................................................ 2

4 C o rp o ra te O ve rvie w ................................................................................................. 3

4.1 C re a tio n o f the c o rp o ra tio n ............................................................................. 3

4.2 The Te a m ............................................................................................................. 3

4.2.1 Jo sé Ta la m a nte s (Fo und e r / C EO ) ........................................................... 3

4.2.2 Hé c to r C á rd e na s (Fo und e r / C TO ) ........................................................... 3

4.3 Le g a l fo rm o f c o m p a ny O wne rship ................................................................ 4

5 Se rvic e s........................................................................................................................ 4

5.1 Future Pro d uc ts a nd Se rvic e s........................................................................... 5

6 Ma rke t Ana lysis Sum m a ry ......................................................................................... 5

6.1 Ma rke t re se a rc h ................................................................................................. 5

6.2 Size o f the m a rke t............................................................................................... 6

6.2.1 Ma rke t Se g m e nta tio n ................................................................................ 6

6.3 Ma rke t Entry Ba rrie rs........................................................................................... 7

6.3.1 O ve rc o m ing the Ba rrie rs............................................................................ 7

6.4 Po te ntia l C o mp e titio ns...................................................................................... 7

6.4.1 C o mp e titio n ................................................................................................. 7

6.4.2 Lo c a l c o m p e tito rs’ se rvic e s: ..................................................................... 8

6.4.3 Nic he ............................................................................................................. 9

6.4.4 Distrib utio n C ha nne ls ................................................................................. 9

6.5 Ta rg e t Ma rke t Se g m e nt Stra te g y .................................................................... 9

6.6 Re a c hing the Ta rg e t m a rke t ............................................................................ 9

6.7 Ma rke ting Mix Mo d e l (4p ´s) ............................................................................10

6.7.1 Pric e ............................................................................................................10

6.7.2 Pro m o tio n ...................................................................................................11

6.7.3 Pla c e ...........................................................................................................11

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 6.7.4 Pro d uc t .......................................................................................................11

7 Fina nc ia l Pla n ...........................................................................................................11

7.1 Sta rt-up Sum m a ry .............................................................................................12

7.1.1 Sta rt-up Re q uire m e nts .............................................................................13

7.1.2 Fund ing the sta rtup Re q uire m e nts ........................................................13

7.2 Sa le s Fo re c a st (2009-2011) ..............................................................................15

8 Ap p e nd ix A ................................................................................................................. 1

8.1 C urric ulum Vita e Jo sé Alfo nso Ta la ma nte s Pa vó n ....................................... 1

8.2 C urric ulum Vita e Hé c to r C á rd e na s Ma rtíne z ................................................ 3

9 Re fe re nc e s ................................................................................................................. a

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2 Intro duc tio n
The a im o f this se c tio n is to intro d uc e the to p ic o f the the sis, to p ro vid e a n
e xp la na tio n o f wha t p urp o se the b usine ss p la n se rve s fo r the e ntre p re ne ur a nd
the imp o rta nc e o f se tting the e nviro nme nt fo r a n inte rne t c o mp a ny.
Furthe rmo re , the p ro b le m fo rmula tio n is g ive n a nd fo llo we d b y a n a c c o unt o f
the p urp o se o f the do c ume nt a s we ll a s the c o nstra ints o n the sc o p e o f the
the sis.

2.1 Ba c kg ro und
Sta rting up a b usine ss is tra nsfo rming a tho ug ht o r a n id e a into b usine ss
o p p o rtunity, a nd re q uire s a c le a r visio n whe re se tting the o b je c tive s a nd
e xa mining the b a rrie rs tha t mig ht b e e nc o unte re d d uring the p ro c e ss tha t will
e nsure the suc c e ss o f the firm . The p ro c e d ure o f b uild ing a sta rtup is
e ng e nd e re d b y a n ind ivid ua l o r g ro up o f ind ivid ua ls whic h o rg a nize s o p e ra te s
a nd a ssum e s risks; the se ind ivid ua ls a re fre q ue ntly la b e le d a s e ntre p re ne urs
(La nd strö m , 1999). The te rm e ntre p re ne urship is a b ro a d te rm tha t c a n b e
a p p lie d fo r se tting up a n o rg a niza tio n a nd it a lso must ta ke p la c e in e sta b lishe d
o ne s.

Pla nning a b usine ss ha s the inte ntio n o f d ra wing a ma p fo r re a c hing the g o a l,

this p ro vid e s the stra te g y tha t the c o m p a ny will fo llo w, se t the o b je c tive s a nd
e stim a te a nd the fina nc e s. Ac c o rd ing to Burns & De whurst (1990) the
d o c um e nt tha t he lp s the e ntre p re ne ur to c rysta llize a nd fo c us the id e a s a nd
a id s him o n me a suring the p e rfo rma nc e o f the b usine ss is c a lle d b usine ss p la n.
The b usine ss p la n tha t is inc lud e d in this d o c ume nt id e ntifie s the ne e d o f
p ro fe ssio na lism in the info rma tio n te c hno lo g y a re a whe re e nte rp rise s c a n
o utso urc e the ir info rma tio n te c hno lo g y d e ve lo p me nts; in sp e c ific o n the
d e ve lo p me nt o f a we b p re se nc e .

The b usine ss p la n p re se nte d symb o lize s the a lig nme nt o f skills b e twe e n
info rma tio n te c hno lo g y a nd b usine ss a d ministra tio n thro ug h the sta rting a nd
running o f a we b d e ve lo p me nt firm. The re a so n fo r d e ve lo p ing a we b
d e ve lo p me nt firm is the ye a rs o f e xp e rie nc e o f a n e ntre p re ne ur in so ftwa re
re la te d d e ve lo p me nts a nd ma na g ing te c hno lo g ic a l re la te d p ro je c ts. In te rms
o f te c hno lo g ic a l e ntre p re ne urship a nd its c o mp e titive ma rke t, the e d uc a tio n
tha t the e ntre p re ne ur ho ld s p ro vid e s a sig nific a nt a d va nta g e o ve r o the r
sta rtup s. Eve n if Bill G a te s a nd Ste ve Jo b s b ring the ste re o typ e o f c o lle g e
d ro p o uts tha t sta rt the ir o wn c o mp a nie s a nd b e c o me suc c e ssful, Wa d hwa
(2008) re p o rts tha t the e ntre p re ne urs in te c hno lo g y a re m id d le a g e d a nd we ll
e d uc a te d a nd d o no t c o me ma inly fro m the to p unive rsitie s. Ho we ve r, 92% o f
the IT fo und e rs ho ld a b a c he lo rs d e g re e .

The p e rc e p tio n o f a c o mp a ny o n the inte rne t re lie s ma inly o n the c a p a b ilitie s o f

the we b d e ve lo p e rs in c ha rg e o f the firm ’ s we b site . The p ro je c tio n o f a
c o rp o ra te ima g e is a me a ns to sho w the p ro fe ssio na lism o r se rio usne ss o f the
c o mp a ny a nd c a n b e a d e c isive p o int a t the b usine ss le ve l. Lo ug hlin (1999)
c o mme nts tha t the d e ve lo p me nt o f a we b site stre ng the ns the c o mp a ny
p o sitio n o n the ma rke t. Wa tkins & Ma re nka (1995) re ma rk the p o ssib ility fo r a
sma ll b usine ss to p ro je c t a stro ng c o rp o ra te ima g e b y ha ving a hig h q ua lity

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p re se nc e o n the inte rne t; this im p lie s tha t ma na g ing a we b d e ve lo p me nt
p ro c e ss m ust ha ve p ro fe ssio na lism a nd o ug ht to b e d e p lo ye d b y q ua lifie d
te a ms.

Kyne So lutio ns c o re b usine ss is the c re a tio n o f te c hno lo g y a nd c o nsulta nc y in

the IT se c to r ma inly fo c use d o n sta rtup s o r sm a ll firms whe re we b d e ve lo p me nt,
o n its o wn, ha s the c a p a b ility o f g e ne ra ting ne w ve nture s. It is imp o rta nt to
fo llo w the e ntre p re ne uria l m o d e d e fine d b y Mintzb e rg (1988) a s “ The a c tive
se a rc h fo r ne w o p p o rtunitie s a nd d ra ma tic le a p s fo rwa rd ing in the fa c e o f
unc e rta inty” . This me a ns ke e p ing the a wa re ne ss in the p ro je c ts tha t c a n
d e ve lo p into a ne w ve nture a nd o p e n fo r inno va tio ns tha t c a n p ro d uc e a jo int
ve nture with o ur c usto me rs.

2.2 Pro b le m
Entre p re ne urs fa c e va rio us c ha lle ng e s whe n p la nning a b usine ss, the m a in
a sp e c t to re c o g nize is the p la c e o r p o sitio n tha t in a future tim e the
e ntre p re ne ur wa nts to b e o r the o b je c tive s tha t wa nt to b e a c hie ve d . In o rd e r
to find the rig ht p a th tha t will le a d to suc c e ss the e ntre p re ne ur must a na lyze a ll
the a sp e c ts tha t surro und the b usine ss id e a he inte nd s to re a lize .

2.3 Purpo se
This the sis ha s a d ua l p urp o se ; firstly it se ts the b a sis o f und e rsta nd ing the te rms
o f e ntre p re ne urship a nd the e nviro nme nt whe re a b usine ss is c re a te d ;
mo re o ve r it e xp la ins the a c q uire me nt o f re so urc e s a nd the struc ture o f the
b usine ss p la n. To fulfill the two p urp o se s, this the sis will b e d ivid e d into a
the o re tic a l b a c kg ro und a nd the a c tua l b usine ss p la n. Furthe rmo re , the first
se c tio n p ro vid e s und e rsta nd ing o f the b usine ss la ng ua g e a nd te rmino lo g y tha t
link to g e the r the a c q uire d skills fro m info rm a tio n te c hno lo g y a nd the ne w
kno wle d g e o f e ntre p re ne uria l ma na g e me nt.

The re a so n fo r fo llo wing this fo rma t is tha t b usine ss d e ve lo p e rs a nd ve nture

c a p ita list usua lly re q uire a b usine ss p la n tha t will he lp to e sta b lish the g o a ls a nd
o b je c tive s fo r the p e rfo rma nc e o f the c o mp a ny. Mo re o ve r, this p a rt will a lso b e
use d fo r c o mmunic a tive p urp o se s fo r m a na g e rs, e m p lo ye e s a nd inve sto rs
re g a rd ing the firm a nd it will me a sure the p e rfo rma nc e o f the firm. Thus, the
the sis d o c ume nt c a n b e d ivid e d a nd the b usine ss p la n c a n b e p re se nte d a s a
full func tio na l d o c ume nt, in c a se it is ne e d e d b y a n e xte rna l e ntity.

2.4 De lim ita tio ns

The re se a rc h a nd the the sis a re limite d into the c re a tio n o f a we b d e ve lo p me nt
a nd IT c o nsulta nc y firm in the a re a o f Jö nkö p ing , Swe d e n. This e nte rp rise p la ns
to g ro w a nd o ffe r its se rvic e s inte rna tio na lly in a la te r sta g e d e p e nd ing o n the
suc c e ss o f the firm. The b usine ss p la n will e vo lve in p a ra lle l to the firm d ire c tio n
a nd g ro wth.

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2.5 O utline o f the The sis

Fig ure 2- 1 O utline o f the The sis

I sta rt b y e xp lo ring va rio us d e finitio n o f the wo rd e ntre p re ne urship , in o rd e r to

g e t a s wid e a p e rsp e c tive a s p o ssib le o f the e vo lutio n a nd histo ry o f the
c o nc e p t. Furthe rmo re , I lo c a te the q ua litie s o f the e ntre p re ne ur a nd his p o sitio n
in the b usine ss c re a tio n p ro c e ss. The ne xt ste p is to id e ntify the thre e d riving
fo rc e s in the p ro c e ss a nd ho w the b a la nc e sho uld b e ma inta ine d . I a lso
m e ntio n the d im e nsio ns o f the e ntre p re ne uria l o rie nta tio n a nd why the y sho uld
b e ke p t fro m the e a rly e sta b lishe d firm s a ll the wa y to the la rg e r, m a ture
c o rp o ra tio ns. The re a fte r the p o ssib ilitie s fo r the e ntre p re ne ur to o b ta in fund ing
a re hig hlig hte d a nd d isc usse d . Ha ving e sta b lishe d the im p o rta nc e o f a ttra c ting
the c a p ita l, I m o ve o n to e xp la in the c o nc e p t o f the b usine ss p la n.
Sub se q ue ntly, the b usine ss a nd its fina nc e s a re p re se nte d a s a wa y o f
m e a suring the he a lth a nd stre ng th o f the firm . Fina lly, it is tim e to intro d uc e the
ma in p urp o se o f the the sis; the b usine ss p la n o f a we b d e ve lo p me nt firm.

3
3 The o re tic a l Fra m e wo rk
The a im o f this se c tio n is se t to e xp la in the te rm e ntre p re ne urship , me ntio n the
o p tio ns whe re a n e ntre p re ne ur c a n o b ta in fund ing fo r his/ he r ve nture a nd
hig hlig ht the im p o rta nc e o f the c re a tio n o f a b usine ss p la n. The the o re tic a l
fra me wo rk c ha p te r c o nta ins re le va nt lite ra ture tha t p ro vid e s the re a d e r with a
b a c kg ro und o f the c o nc e p t o f e ntre p re ne urship , a s we ll a s with the p ro c e ss o f
c re a ting a ne w firm. The se c tio n a lso g ive s the te rms tha t a n ind ivid ua l must ta ke
into c o nsid e ra tio n whe n c a rrying o ut the p ro c e ss o f sta rting up a ve nture .

3.1 Entre pre ne urship

Eve n whe n e ntre p re ne urship a s a c o nc e p t first a p p e a re d in the Fre nc h
d ic tio na ry in 1943, d e fining a n ind ivid ua l a s a n a c tive p e rso n tha t g e ts thing s
d o ne ; the te rm e ntre p re ne ur ha d b e e n use d in Euro p e sinc e the fe ud a l p o litic a l
syste m . (La nd strö m 1999).It wa s d uring the Mid d le Ag e s whe n e me rg ing c itie s
c re a te d the g ro und fo r a n e ntre p re ne ur to ma rke t the ir p ro d uc tio ns fro m ra w
ma te ria l, w hic h b e ing a n e ntre p re ne ur w a s usua lly se e n a s so me o ne to ug h a nd
willing to risk life fo r a fo rtune . (C o rne lius 2006).

O n the 17th c e ntury the te rm e ntre p re ne urship wa s re la te d to a p e rso n invo lve d

in risk-ta king a c tivitie s b ut o nly if the se a c tivitie s we re la rg e sc a le und e rta king s,
this m e a ns tha t usua lly the e ntre p re ne ur ha d a c lo se re la tio nship with the sta te ;
whe re the ind ivid ua l wa s re sp o nsib le fo r the p ro fit o r lo ss c o ming fro m the
o p e ra tio n. (La nd strö m , 1999).

C a ntillo n (1931) in Essa y o n the Na ture o f Tra d e in G e ne ra l, p la c e s the

e ntre p re ne ur insid e the e c o no mic d e ve lo p me nt, a s the p e rso n who p urc ha se s
re so urc e s a t a c e rta in p ric e a nd the n se lls the p ro d uc ts la te r a t a n unc e rta in
p ric e in a n unc e rta in lo c a tio n. C a ntillo n (1931) c la ssifie s the e ntre p re ne ur a s the
risk ta ke r tha t b a la nc e s re so urc e s a nd o p p o rtunitie s.

In the 18th c e ntury, the Fre nc h e c o no m ist Je a n Ba p tiste Sa y, d e sc rib e s the

e ntre p re ne uria l a c tivitie s a nd the lo c a tio n o f the e ntre p re ne ur in the e c o no my.
He se e s the e ntre p re ne ur a s a ne g o tia to r b e twe e n the ma nufa c ture a nd the
kno wle d g e , i.e . the re a so n fo r c re a ting va rio us wa ys o f p ro d uc ing a p ro d uc t o r
se rvic e . Furthe rmo re Sa y sta te s tha t e ntre p re ne urs a re c re a to rs a nd d o e rs tha t
p o sse ss the a b ility to ma tc h kno wle d g e a nd re so urc e s with the p e o p le .
(La nd strö m , 1999)

Jo se p h Sc hump e te rs (1934) o nc e a g a in se e s the e ntre p re ne uria l fig ure a s a

c re a tio n o f inno va tio n. Afte r sta ting tha t e q uilib rium is p re d o m ina nt in a ny
e c o no mic syste m he me ntio ns tha t the e ntre p re ne ur b re a ks this b a la nc e b y
intro d uc ing inno va tio ns to the syste m b y p re se nting ne w p ro d uc ts, find ing ne w
ma rke ts e tc . He sug g e st tha t e ntre p re ne urs e njo y hig h p o sitio ns in so c ie ty, a s
the y a re re sp o nsib le fo r p ushing the e c o no mic p ro c e ss fo rwa rd thro ug h
e nc o ura g ing ind ivid ua ls to e limina te the e xisting in o rd e r to c re a te so m e thing
m o re va lua b le . In o p p o sitio n to Sc hum p e te r (1934) Kirzne r (1973) sta te s tha t the

Pa g e | 4
e ntre p re ne ur a na lyze s the e xisting e nviro nme nt, a nd links to g e the r the ne e d s o f
the ma rke t, re sulting in the b a la nc e o f the e c o no m y.

The c o m p a riso n tha t Wilke n (1979) m a ke s o f e ntre p re ne urship is a c c ura te , he

c o mp a re s the d e finitio n with a mystic a l b e a st, la rg e a nd intimid a ting . In re a lity
e ve n whe n the te rm ha s ma ny ro o ts a nd d e finitio ns, it re fe rs to the c re a tio n o f a
ne w fo rm o f b usine ss b y se izing a n o p p o rtunity to c re a te so me thing ne w thro ug h
the m a ximiza tio n o f re so urc e s. It is im p o rta nt to m e ntio n Sc hum p e te r’ s vie w
(1934) tha t e ntre p re ne urship is no t o nly a tta ina b le fo r ind ivid ua ls b ut a lso within
the re a c h o f e xisting o rg a niza tio ns.

The se c tio n a b o ve a na lyze d se ve ra l d e finitio ns tha t id e ntify a n e ntre p re ne ur a s

“ So me o ne who p e rc e ive s a n o p p o rtunity a nd c re a te s a n o rg a niza tio n to p ursue
it” ; b ut the o ne tha t e xe mp lifie s the e sse nc e o f the te rm is b a se d o n Ka o (1993)
a s: “ Entre p re ne urship is the p ro c e ss o f d o ing so me thing d iffe re nt fo r the p urp o se
o f c re a ting we a lth fo r the ind ivid ua l while a d d ing va lue to so c ie ty” (Ka o , 1993).

3.1.1 The na ture o f the e ntre pre ne uria l de c isio n m a king pro c e ss.
Intuitio n is a to o l fo r d e c isio n ma king , b ut m a na g e rs sho uld o nly use it se le c tive ly
a nd b a se d e c isio ns o n fa c ts ra the r tha n “ g ut fe e ling ” . Whe n d e c id ing , it is
m a nd a to ry to c o nsid e r the risks o f the a c tio ns b e ing ta ke n a s we ll a s the
p o te ntia l future situa tio ns. The va lue o f intuitio n is e m b ra c e d whe n d e ta ile d
info rma tio n a nd a c o nsc io us re vie w o f the c o urse tha t c o uld b e ta ke n a re
c o nsid e re d . Entre p re ne urs c a n use intuitio n a s a n e ffe c tive a p p ro a c h to
imp o rta nt d e c isio ns whe n p la nning o r a d justing , b ut in o rd e r to ha ve a c o rre c t
d e c isio n ma d e ; fa c ts a nd a q ua ntita tive a na lysis must b e o b ta ine d a nd
c o nsid e re d . Whe n the fa c ts a re g a the re d a nd a na lyze d , intuitio n p re se nts the
p a th fo r o b ta ining the b e st o utc o m e o f the situa tio n. O n the o the r ha nd intuitio n
is a use ful to o l a nd e sp e c ia lly a d e q ua te whe n a d e c isio n re q uire s a ra p id
re sp o nse , a fa st p a c e d c ha ng e . It is a lso to le ra b le to re ly o nly o n intuitio n whe n
the re is no p re c e d e nt o r p o ssib ility o f a na lysis. Furthe rmo re , whe n the
e nviro nm e nt is ha rd to a na lyze d ue to ra p id c ha ng e o r whe n the p ro b le m is
p o o rly struc ture d b e c a use o f c o nflic ting o r a m b ig uo us info rm a tio n; intuitio n is the
a d visa b le wa y o f d e c isio n-ma king (Mille r, 2005).

3.1.2 Entre pre ne uria l Pro c e ss

Byg ra ve (1997, p . 3) sp e c ifie s tha t “ the e ntre p re ne uria l p ro c e ss invo lve s a ll the
func tio ns, a c tivitie s, a nd a c tio ns a sso c ia te d with re c o g nizing o p p o rtunitie s a nd
c re a ting o rg a niza tio ns to p ursue the m ” . It is c o mmo n to re fe r to the p ro c e ss o f
sta rting a ne w ve nture a s the e ntre p re ne uria l p ro c e ss. Sinc e this p ro c e ss is
d e p e nd e nt o n insta nc e s, suc h a s b usine ss id e a , re so urc e s a va ila b le , p e o p le
invo lve d o r the ind ustry it is ha rd to id e ntify the b e g inning o r the e nd o f the
p ro c e ss, w hic h in so me c a se s is se e n a s a n ite ra tive p ro c e ss, whic h g o e s b a c k
a nd fo rth a nd in so m e o c c a sio ns is re p e a ting itse lf. (Sa ra sva thy, 1997)

Timmo ns (1999) o b se rve s tha t d e sp ite the d iffe re nc e s b e twe e n the ve nture s,
e ntre p re ne urs o r the lo c a tio n, suc c e ssful b usine sse s ha ve c ha ra c te ristic s in

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c o mmo n whic h c a n b e e va lua te d , a lte re d a nd influe nc e d . (1) The y a re
o p p o rtunity d rive n (2) the y a re le d b y a n e ntre p re ne ur o r b y a n e ntre p re ne uria l
te a m (3) the y a re c re a tive a nd ha ve re stric te d re so urc e s.

The Timmo ns Mo d e l o f the Entre p re ne uria l Pro c e ss sho ws a b a la nc e b e twe e n

thre e ma in e ntitie s tha t g ua ra nte e the e ntre p re ne uria l suc c e ss; the se e ntitie s a re
o p p o rtunity, re so urc e s a nd the te a m . The e ntre p re ne urs must use the ir a b ility to
ma na g e the e ntitie s sinc e the y will b e mo ving in a d yna mic e nviro nme nt.
Furthe rmo re , to ha ve a n und e rsta nd ing a nd a b a la nc e in the p ro c e ss; the
b usine ss p la n will se t the c o mmunic a tio n c o d e b e twe e n the thre e d riving fo rc e s
(Timmo ns, 1999).

The first fo rc e is o ppo rtunity , (Timmo ns, 1999) e nsure s tha t the ne w ve nture
c re a tio n p ro c e ss d o e s no t sta rt with m o ne y, stra te g y o r the te a m ; it sta rts with a n
o p p o rtunity. It is sa id tha t a n e nviro nme nt whe re c re a tivity a nd c o mmunic a tio n
a re e nc o ura g e d , o p p o rtunity id e ntific a tio n g e ne ra te s the b usine ss c o nte xt
whe re va lue is a d d e d . O p p o rtunity c a n b e me a sure d b y p a ra me te rs suc h a s the
size o f the m a rke t, the d e m a nd o r the ma rke t struc ture ; the se p a ra m e te rs
p ro d uc e the fa c to rs tha t d iffe re ntia te a n o p p o rtunity fro m o nly ha ving a n id e a .

The ne xt e ntity in the d ia g ra m is the re so urc e s, whic h c a n b e d e fine d a s a

p ro c e d ure o r a me a n to a c c o mp lish a ta sk; e ve ry b usine ss id e a ne e d s a c o rre c t
o rg a niza tio n o f its re so urc e s so it c a n b e e xp lo ite d into a true o p p o rtunity. The
re so urc e s ne e d e d in a ve nture a re usua lly e xp la ine d in the b usine ss p la n, e .g . the
fina nc ia l re so urc e s ne e d e d a lo ng with the b usine ss a sse ts a nd the re q uire d
p e o p le . Furthe rmo re , it is mo re va lua b le fo r a suc c e ssful b usine ss ve nture , to
ha ve c o ntro l a nd p o sse ssio n o f the rig ht re so urc e s ra the r tha n o wn a la rg e
re so urc e p o o l with little c o ntro l (Timmo ns, 1999)

The te a m is the la st d riving fo rc e tha t c o m p le te s the d ia g ra m ; this m e a ns ha ving

the rig ht p e o p le wo rking e ffic ie ntly. This usua lly b e g ins with a le a d e r tha t
e sta b lishe s a n e ntre p re ne uria l o rg a niza tio n a nd c ulture b a se d o n skills suc h a s
d e a ling a g a inst a d ve rsity, inte g rity, ho ne sty a nd d e p e nd a b ility. The se
c ha ra c te ristic s ne e d to b e c o me a c o mmitme nt a s a te a m fo r mo tiva tio n a nd
to le ra ting a mb ig uity Timmo ns (1999) stre sse s the imp o rta nc e o f a hig h le ve l
te a m in b uild ing a suc c e ssful ve nture . He e nsure s tha t is b e tte r to ha ve a g ra d e
A te a m with a g ra d e B id e a ra the r tha n a g ra d e B te a m with a n A g ra d e id e a .

The mo d e l o f e ntre p re ne uria l p ro c e ss ( Fig ure 3-1 Tim m o ns Mo d e l o f the

Entre p re ne uria l Pro c e ss (Timmo ns, 1999, p . 38) ) sho uld b e b a la nc e d , a nd a ny
c ha ng e in the size o f the e ntitie s mig ht p la c e the ve nture in a risky p o sitio n. If the
o p p o rtunity g ro ws, a nd the re so urc e s b e c o me sc a rc e , the who le mo d e l will tilt
a nd a n inje c tio n o f c a p ita l will b e ne e d e d to ma inta in the c o mp a ny’ s he a lth
(Timmo ns, 1999).

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 Fig ure 3- 1 Tim m o ns Mo de l o f the Entre pre ne uria l Pro c e ss (Tim m o ns, 1999, p. 38)

Be ha ve (1994) sug g e sts a no the r m o d e l o f the e ntre p re ne uria l p ro c e ss (Fig ure 3-2
O p p o rtunity Re c o g nitio n in Entre p re ne uria l Ve nture C re a tio n (Be ha ve , 1994, p .
229) ) ; he d e sc rib e s ho w the e ntre p re ne ur is stim ula te d whe n c re a ting a ne w
b usine ss ve nture . Be ha ve (1994) p re se nts a m o d e l with a d ua l p a th in the
b e g inning o f e ve ry ne w ve nture c re a tio n whic h in b o th o c c urre nc e s c o nc lud e s
o n the id e ntific a tio n o f the b usine ss c o nc e p t a nd a c o m m itme nt to p hysic a l
c re a tio n. The ma in d iffe re nc e s a re d e sc rib e d a s fo llo ws: (1) Exte rna l Stimula te d
O p p o rtunity Re c o g nitio n, this is whe n the e ntre p re ne urs find the mo tiva tio n fo r
c re a ting a ne w b usine ss in the d e sire o f c re a ting a ne w ve nture , the re fo re the
e ntre p re ne ur filte rs the id e a s tha t mig ht b e c o me a ne w ve nture a nd se le c ts the
o ne tha t mig ht g ive him the suc c e ss e xp e c te d , a fte r c ho o sing the o p p o rtunity it
is re d e fine d a nd it is he re tha t the e ntre p re ne ur id e ntifie s the b usine ss c o nc e p t
a nd c o m m its to the c re a tio n o f the ve nture . (2) Inte rna l stim ula te d o p p o rtunity
re c o g nitio n, this is whe n the c re a tio n o f a ne w c o mp a ny is no t the m a in p urp o se
tha t the e ntre p re ne ur ha s, inste a d the ind ivid ua l so lve s a p ro b le m o r a ne e d
whic h la te r c a n b e c o nve rte d into a b usine ss (Be ha ve , 1994).

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 Fig ure 3- 2 O ppo rtunity Re c o g nitio n in Entre pre ne uria l Ve nture C re a tio n (Be ha ve , 1994, p. 229)

3.1.3 Entre pre ne uria l O rg a niza tio ns a nd g ro wth

G e ne ra lly the c o nc e p t o f e ntre p re ne urship is tho ug ht o f in te rms o f ne w sta rt-up s.
Ho we ve r, it is e q ua lly im p o rta nt to m a inta in the e ntre p re ne uria l sp irit e ve n insid e
o ld e r a nd ma ture firms. Ac c o rd ing to Ste ve nso n & Sa hlma n (1989),
e ntre p re ne urship c a n b e se e n a s a ma na g e me nt p ro c e ss, sug g e sting tha t
e ntre p re ne uria l b e ha vio r is c ruc ia l to the lo ng -te rm vita lity o f the inte rna tio na l
e c o no m y.

The c o nc e p t o f C o rp o ra te Entre p re ne urship (C E) is d e fine d b y Sha rm a &

C hrisma n, (1999) a s “ the p ro c e ss whe re b y a n ind ivid ua l o r a g ro up o n ind ivid ua ls,
in a sso c ia tio n with a n e xisting o rg a niza tio n, c re a te s a ne w o rg a niza tio n o r initia te
re ne wa l o r inno va tio n b e twe e n the o rg a niza tio ns” . Entre p re ne uria l O rie nta tio n
(EO ) is the stra te g y tha t b usine sse s fo llo w to id e ntify a nd la unc h ne w c o rp o ra te
ve nture s. (De ss & Lump kin, 2005).

It is o b se rve d tha t g ro wth in firm s is m a inly fo llo we d b y jo ints ve nture s, m e rg e rs

a nd stra te g ic a llia nc e s. In to d a y’ s c ha ng ing e nviro nme nt a fo c us o n c o rp o ra te
e ntre p re ne urship c o ntrib ute s in susta ina b le a d va nta g e s tha t p ro d uc e hig he r
re turns. C o rp o ra te e ntre p re ne urship – “ intra p re ne urship ” – re fe rs to the b uild ing
o f ne w e ntre p re ne uria l b usine sse s a nd ve nture s within the e xisting firm. (Pinc ho t,
1985). Fo r p ro d uc ing a c o rp o ra te e ntre p re ne urship e nviro nme nt, firms must
fo llo w stra te g ie s a nd p ra c tic e s tha t g e ne ra te a hig h d rive fo r inno va tio n a s we ll
a s a risks ta king mind se t to wa rd s p ursuing ne w c o rp o ra te ve nture s. Ac c o rd ing to
De ss & Lump kin (2005)the c o rre la tio n b e twe e n the d ime nsio ns o f c o mp e titive
a g g re ssive ne ss, risk-ta king , inno va tive ne ss, p ro a c tive ne ss a nd a uto no my b ring
to g e the r the te rm Entre p re ne uria l O rie nta tio n (EO ).

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3.1.3.1 Entre pre ne uria l O rie nta tio n

The five d im e nsio ns to whic h e ntre p re ne uria l o rie nta tio n is d e lim ite d a re : (1)
Auto no m y. The ind e p e nd e nt a c tio n b y ind ivid ua l o r te a m a ime d a t b ring ing
fo rth a b usine ss c o nc e p t o f visio n a nd c a rrying it thro ug h to c o mp le tio n. (2)
Inno va tive ne ss. A willing ne ss to intro d uc e no ve lty thro ug h e xp e rime nta tio n a nd
c re a tive p ro c e ss a ime d a t d e ve lo p ing ne w p ro d uc ts a nd se rvic e s. (3)
Pro a c tive ne ss. A p e rsp e c tive o f lo o king fo rwa rd , b e ing a c ha ra c te ristic o f a
le a d e r, tha t fo re se e s c a p turing o p p o rtunitie s in a ntic ip a tio n o f future d e m a nd .
(4) Risk Ta king , ma king d e c isio ns a nd ta king a c tio n witho ut ha ving c e rta in
kno wle d g e o f p ro b a b le o utc o me s; so m e a c tivitie s ma y a lso invo lve ma king
sub sta ntia l re so urc e c o mmitme nts in the p ro c e ss o f ve nturing fo rwa rd .
(5)C o mp e titive Ag g re ssive ne ss, An inte nse e ffo rt to o utp e rfo rm ind ustry riva ls, it
c ha ra c te rize d b y a c o mb a tive p o sture o r a n a g g re ssive re sp o nse a ime d a t
im p ro ving p o sitio n o r o ve rc o ming a thre a t in a c o mp e titive e nviro nme nt (De ss &
Lum p kin, 2005).

Suc c e ss in e a rly e sta b lishe d firms is a ttrib ute d , in mo st c a se s, to a b a la nc e o f the

e ntre p re ne uria l o rie nta tio n d ime nsio ns, a s a n e xa mp le , to p ro d uc e a hig h le ve l
o f e ntre p re ne uria l d e ve lo p me nt a nd a c lima te o f inno va tio n the ma in fo c us o f
the firm is o n p ro a c tive ne ss a nd a uto no m y (De ss & Lum p kin, 2005)

Re c o m m e nda tio ns to im pro ve the e ntre pre ne uria l o rie nta tio n dim e nsio ns

To e nha nc e a uto no m y , e ntre p re ne uria l thinking must b e e nc o ura g e d

c o nc e rning inno va tio n a nd ne w ve nture c re a tio n. The struc ture o f the c o mp a ny
is im p o rta nt to b e ta ke n into c o nsid e ra tio n; o n o ne ha nd , the usa g e o f a to p -
d o wn a p p ro a c h g ive s the le a d e rs the o p p o rtunity to inc e ntive e ntre p re ne urship ,
b ut the b e st id e a s c o me fro m a b o tto m up a p p ro a c h a nd ne e d to b e liste ne d
b y to p (De ss & Lum p kin, 2005).

Fo r inno va tive ne ss, a s o ne o f the ma yo r c o mp o ne nts o f e ntre p re ne uria l

a c tivitie s, e ffo rts sho uld b e d ire c te d to find o p p o rtunitie s a nd o rig ina l so lutio ns
tha t will b e c o me ne w p ro d uc ts a nd se rvic e s. It is im p o rta nt to c o nsid e r tha t e ve n
whe n inno va tive ne ss c a n b e the so urc e o f p ro g re ss; it mig ht ta ke se ve ra l
re so urc e s witho ut p ro d uc ing a visib le re sult. The re fo re while it inno va tive ne ss
me a ns a stro ng c o rp o ra te g ro w, it a lso invo lve s ma jo r risks in R&D inve stme nts
(De ss & Lum p kin, 2005).

To a m p lify the le ve l o f pro a c tive ne ss o rg a niza tio ns must mo nito r the tre nd s a nd
a ntic ip a te the c ha ng e s in d e m a nd tha t mig ht le a d into ne w ve nture
o p p o rtunitie s. Ac c o rd ing to De ss & Lum p kin (2005), c o m m o n a c tio ns in firm s
to wa rd p ro a c tive ne ss a re the intro d uc tio n o f ne w p ro d uc ts o r te c hno lo g ic a l
c a p a b ilitie s a he a d o f c o mp e titio n a nd a c o ntinuo us se a rc h fo r ne w p ro d uc t
a nd se rvic e s o ffe ring . In o rd e r tha t a firm ma inta ins the ir le ve l o f p ro a c tive ne ss a
c a re ful m o nito ring o n the e nviro nm e nt a nd a n e xte nsive fe a sib ility re se a rc h is
ne e d e d (De ss & Lump kin, 2005).

C o m pe titive a g g re ssive ne ss p re se nts the e ffo rt o f a firm to e xc e e d the ir

c o m p e tito rs, this c a n b e d o ne b y p ric e re d uc tio n e ve n if it re d uc e s p ro fita b ility

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b ut g a ins ma rke t sha re . Re c o mme nd a tio ns fo r b o o sting the e ntre p re ne uria l
p o sitio n inc lud e : e nte ring the ma rke t with lo w p ric e s o r d up lic a ting suc c e ssful
b usine ss p ra c tic e s fo rm c o mp e tito rs. O n the o the r ha nd , g a ining a d va nta g e b y
c o mp e titive a g g re ssive ne ss c a n d a ma g e the firm re p uta tio n; the re fo re the
usa g e o f c o mp e titive a g g re ssive ne ss must no t b e o ve ruse d (De ss & Lump kin,
2005).

An e ntre p re ne ur must b e a wa re o f the le ve l o f risk ta king b e fo re la unc hing a ny

o f the ir stra te g ie s. Ma inly o rg a niza tio ns ta ke risks re g a rd ing b usine ss, fina nc ia l o r
p e rso na l, a nd in o rd e r to ma ximize the o utc o me o f the risks ta king d e c isio ns,
o rg a niza tio ns must (1) Re se a rc h a nd e stima te risk fa c to rs to minimize unc e rta inty,
a nd (2) Use trie d -a nd -true p ra c tic e s a nd te c hniq ue s tha t ha ve wo rke d in o the r
d o ma ins. As a n e xa m p le the e nthusia sm o f a firm to ta ke o ve r a ve nture e ve n
whe n the suc c e ss is no t g ra nte d is re la te d to the le ve l o f risk tha t the firm is a b le
to ta ke (De ss & Lum p kin, 2005).

3.1.3.2 Inte rna tio na liza tio n a s a g ro wth stra te g y

The c ha ng ing wo rld e nc o ura g e s c o mp a nie s to e xp a nd inte rna tio na lly, in o rd e r

fo r tha t e xp a nsio n b e b e ne fic ia l is c ritic a l tha t the ir o p e ra tio ns fo ste r
e ntre p re ne urship a nd b e a wa re o f fa c to r a s te c hno lo g ic a l c ha ng e a nd ma rke t
re q uire me nts. Ha ving a n e ntre p re ne uria l visio n insid e the firm inc re a se s the
c ha nc e s fo r suc c e ss in fo re ig n ma rke ts. Entre p re ne urship c a n a lso b e re fe rre d a s
the a c tivitie s, fo rma l a nd info rma l, a ime d a t inc re a sing inno va tio n a nd ve nturing
b y a c o mp a ny. A firm must b e a le rt to e me rg ing o p p o rtunitie s a nd inte rna tio na l
ma rke ts in o rd e r to re c o g nize d e fine a nd p e ruse se le c te d o p p o rtunitie s. Ba sic a lly
whe n c o m p a nie s a im to wa rd s inte rna tio na l g ro wth, se ve ra l c ha lle ng e s must b e
ma na g e d a nd e nte rp rise s must b e a wa re o f the o rg a niza tio na l skills to b e
le a rne d b y inve sting a nd d e ve lo p ing c o re c o mp e te nc ie s in d ista nt ma rke ts.
“ Entre p re ne urship e na b le s a c o mp a ny to d e live r g re a te r va lue to its c usto me rs,
sha re ho ld e rs a nd sta ke ho ld e rs” (Birkinsha w, 2003).

De ve lo p ing a nd e xe c uting a n inno va tive a nd e ffe c tive g lo b a l stra te g y,

re p re se nts a n e nha nc e me nt o n the c o mp e titive p o sitio n in inte rna tio na l ma rke ts.
Usua lly firm s tha t e xp a nd inte rna tio na lly fo llo w m a inly two p a tte rns: a d a p ting
the ir d o me stic g o o d s o r se rvic e s to suit inte rna tio na l c usto me rs o r b y a p p lying
the ir ho me p ra c tic e s into inte rna tio na l ma rke ts.

As e xe m p lifie d b y Za ha ra & Ha yto n (2001) a s inte rna tio na l ve nturing ta ke s the

c o mp a ny into a ne w te rrito ry, m a rke t a nd ind ustry e xp o sing the firm to d iffe re nt
c ulture s, ma rke ts a nd inno va tio n syste ms. It a lso c o nne c ts the firm to ne w
ne two rks o f sup p lie rs, c o mp e tito rs a nd c usto me rs. It is im p o rta nt to p a y sp e c ia l
a tte ntio n to the kno wle d g e tha t a ne w c ulture p ro vid e s a s we ll a s the
o p p o rtunitie s a nd inno va tio ns tha t this p ro c e ss mig ht b ring , a s c lie nt
re q uire me nts o r c o mp e tito rs b e st p ra c tic e s. Inte rna tio na liza tio n inc re a se s
e ntre p re ne urship b e c a use o f the e xp o sure o f the firm to ne w b usine ss
e nviro nme nts a nd b o o st the ir c urio sity to wa rd s g o a ls re so lutio n.

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Fo r p ro mo ting e ntre p re ne urship a nd e xp a nd ing inte rna tio na lly, fo ur c ha lle ng e s
a nd o p p o rtunitie s ha ve to b e a d d re sse d : (1) Ma na g ing the d ua lity o f
e ntre p re ne uria l a c tivitie s tha t re fe rs to c o mp a nie s must b a la nc e the ne e d to
e xp lo it e xisting kno wle d g e to a tta in o rg a niza tio na l g o a ls, while le a rning a nd
inte g ra ting ne w e ntre p re ne uria l a c tio ns to e xisting p ra c tic e s (Burg e lm a n, 1983).
(2) C ultura l Ad a p ta tio n a nd O rg a niza tio na l Id e ntity Entre p re ne uria l Ac tivitie s tha t
a re c lo se ly c o nne c te d to its o rg a niza tio na l c ulture (Ka nte r, 1983). And must
a d a p t to ma rke t c o nd itio ns a nd m a rke t c ulture whe re the e xp a nsio n is
d e ve lo p e d . (3) Atta ining Inte g ra tio n while a vo id ing o rg a niza tio na l c o m p le xity.
Inte rna tio na liza tio n b ring s the firm c lo se r to the c o mp e tito r’ s sup p lie rs a nd
c usto me rs a nd m ust b e vie we d a s so urc e s o f kno wle d g e . (4) C e ntra lize d vs.
Diffuse d Entre p re ne urship . De te rmining the a p p ro p ria te lo c a tio n o f the
e ntre p re ne uria l a c tivitie s is c ruc ia l fo r g lo b a l firms, d ue to ne e d fo r lo c a l
re sp o nsive ne ss a nd o rg a niza tio na l inte g ra tio n to wa rd s the lo c a l ma rke ts (Za ha ra
& Ha yto n, 2001).

Ma na g ing the dua lity o f e ntre pre ne urship a nd le a rning : This c ha lle ng e c o nsist o f
two a sp e c ts. First, ma na g e rs ne e d to b a la nc e the e xp lo ita tio n o f o p p o rtunitie s
thro ug h fo rma l a nd info rma l e ntre p re ne urship , while le a rning a nd inte g ra ting
ne w kno wle d g e tha t a fte r will a llo w d e ve lo p ing skills a nd c o mp e te nc e s (w hic h in
turn stimula te s inte rna tio na l e xp a nsio n a g a in a c c o rd ing to the c yc le o f c re a tive
d e struc tio n). Entre p re ne uria l a c tivitie s in a firm re q uire ma na g e ria l sup e rvisio n, in
o rd e r to p ursue o p p o rtunitie s, a nd this mo ve s a wa y ma na g e rs’ fo c us fro m the
le a rning a nd inte g ra ting o f kno wle d g e c o ming fro m the se e ntre p re ne uria l a c ts.
Thus ma na g e rs c o nc e ntra te o n p ursuing o p p o rtunitie s in ne w inte rna tio na l
m a rke ts b ut d o no t ta ke sto c k o f the kno wle d g e le a rne d in the se ma rke ts. The
o the r a sp e c t re g a rd s the b a la nc e b e twe e n the e xp lo ita tio n o f kno wle d g e in
c urre nt inte rna tio na l ma rke ts a nd the g a ining o f ne w kno wle d g e fro m fro ntie r o r
ne w inte rna tio na l ma rke ts. Pursuing o p p o rtunitie s in ne w inte rna tio na l ma rke ts
invo lve s sup p o rting inte rna tio na liza tio n via fo rma l a nd info rma l e ntre p re ne urship ,
i.e . c a p ita lize o n e me rg ing o p p o rtunitie s a nd g e t info rma tio n o n o p p o rtunitie s in
ne w ma rke ts. Exp lo iting o p p o rtunitie s in c urre nt ma rke ts d o e sn’ t stim ula te
inte rna tio na l e xp a nsio n b ut ra the r sup p o rts the d e ve lo p me nt o f a nd ne w m o d e s
to e mp lo y the firm’ s e xisting skills a nd c a p a b ilitie s (Za ha ra & Ha yto n, 2001).

C ultura l a da pta tio n a nd o rg a niza tio na l id e ntity : Firms tha t wa nts to a c hie ve
susta ina b le inte rna tio na l g ro wth must a d a p t its o rg a niza tio na l c ulture to the lo c a l
m a rke t’ s c ulture a nd c o nd itio ns, while ma inta ining its o rg a niza tio na l id e ntity
sinc e it func tio ns a s a n imp o rta nt no n-re p ro d uc ib le c o mp e titive a d va nta g e .
Ho we ve r, if the firm im p o se s its c ultura l tra its to its inte rna tio na l sub sid ia rie s,
sup p lie rs o r a g e nc ie s c o nflic ts with lo c a l e m p lo ye e s will a rise a nd the c o mp a ny
fo c us o n e ntre p re ne urship will d e c re a se . Altho ug h, if a firm a d a p ts e xc e ssive ly
the re sults ma y no t b e e ffe c tive a s stra te g ic c o he re nc e a nd c o mmo n missio n
c a n b lur c o ntrib uting to we a ke ning o rg a niza tio na l id e ntity. But c ultura l
a d a p ta tio n ma y a lso ind uc e c re a tivity, inno va tio n a nd d ive rsific a tio n tro ug h
multic ultura lism a nd c o mp e ting va lue s. Thus, c ultura l a d a p ta tio n c a n b e g o o d o r
b a d fo r e ntre p re ne urship . The re fo re it must b e im p le me nte d to the d e g re e tha t it

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e nc o ura g e s e ntre p re ne uria l a c tio ns witho ut a ffe c ting ne g a tive ly o rg a niza tio na l
id e ntity (Za ha ra & Ha yto n, 2001).

Atta ining inte g ra tio n while a vo iding o rg a niza tio na l c o m ple xity : firms tha t e xp a nd
inte rna tio na lly w a nt to inte g ra te kno wle d g e fro m the ir sub sid ia rie s so tha t the
who le o rg a niza tio n c a n b e ne fit fro m it. But this kno wle d g e is d isp e rse d , intric a te ,
sp lit a nd fa r fro m the he a d q ua rte rs. The re fo re tra nsitio ns b e c o me d iffic ult a nd
c o mp le x a s we ll a s d e c o d ing info rma tio n g e ts c o mp lic a te d fo r ma na g e rs.
Inte g ra ting suc h kno wle d g e is c ruc ia l to sup p o rt e ntre p re ne urship in a firm tha t
g ro ws inte rna tio na lly. To a vo id c o mp le xity in a la rg e inte rna tio na l firm ,
he a d q ua rte rs must e nsure tha t kno wle d g e flo ws in fro m its sub sid ia rie s a nd is
sha re d a m o ng the m . To d o this the d e ve lo p m e nt o f a so p histic a te d
c o mmunic a tio n stra te g y mig ht b e re a lly im p o rta nt a s info rma tio n a nd
kno wle d g e must b e sha re d b e twe e n d iffe re nt units in se ve ra l lo c a tio ns a nd to
the he a d q ua rte rs in a wa y tha t m a inta ins e ntre p re ne urship a t the p a c e o f
inte rna tio na l g ro wth, b e c a use if the kno wle d g e d o e sn’ t flo w c o rre c tly
e ntre p re ne urship will d e c re a se a nd inte rna tio na liza tio n will no t re a c h its full
p o te ntia l (Za ha ra & Ha yto n, 2001).

C e ntra lize d ve rsus diffuse d e ntre pre ne urship : a p la c e whe re e ntre p re ne uria l
a c tivitie s c o uld b e a llo c a te d is c ruc ia l fo r g lo b a l firms, it c o nc e rns re sp o nsive ne ss
to lo c a l m a rke ts, p ro d uc t c usto miza tio n, a nd timing to sa tisfy d e m a nd s.
C e ntra lize d e ntre p re ne urship ma y sa tisfy the d e ma nd o f inte rna tio na l p ro d uc ts
fa ste r b e c a use o f q uic k c o mmunic a tio n a nd p ro c e sse s. Whilst d e c e ntra lize d
e ntre p re ne urship stimula te s re sp o nsive ne ss to lo c a l ma rke ts’ ne e d s a nd p ro d uc t
c usto miza tio n. Firms w ith mo re inte rna tio na l p ro d uc ts sho uld a d o p t c e ntra lize d
e ntre p re ne urship , a nd firms tha t c o mp e te in sp e c ific lo c a l ma rke ts with a fo c us
o n p ro d uc t c usto miza tio n sho uld d e c e ntra lize its e ntre p re ne urship (Za ha ra &
Ha yto n, 2001).

3.2 O b ta ining Fina nc ia l Re so urc e s

Fo r ma te ria lizing a n id e a into a b usine ss o r whe n the b usine ss ne e d s to e xp a nd ,
fina nc ia l p ro b le ms a re fa c e d a nd in mo st c a se s a nd c o mp a nie s ne e d to a c q uire
e xte rna l he lp . De p e nd ing o n d iffe re nt a sp e c ts, suc h a s the le ve l o f c o ntro l o ve r
the c o mp a ny, d iffe re nt me tho d s ne e d to b e a na lyze d . While the mo st c o mmo n
me tho d s fo r e xte rna l fina nc e a re ve nture c a p ita l, b a nk lo a ns o r a ng e l fund ing
inve stme nt; b o o tstra p p ing is a c o mmo nly use d me tho d use d to re ly o n e xte rna l
fina nc e fro m d e b t ho ld e rs o r ne w o wne rs. The re fo re , c ho o sing a mo ng the ma ny
p o ssib le so urc e s o f fina nc ing ma y b e a n im p o rta nt issue fo r c o mp a nie s to
c o nsid e r. Diffe re nt fina nc ing so urc e s will b e d isc usse d .

3.2.1 Ba nk Lo a ns
O ne o f the mo st c o mmo n wa ys o f o b ta ining fina nc e is thro ug h b a nks o r o the r
fina nc ia l institutio ns. With b a nk fina nc e , the o wne rs o f c o mp a nie s c a n re ta in full
c o ntro l o f the ir b usine ss sinc e the b a nk ha s no inp ut into the ma na g e ria l e ffo rts o r
a ffa irs in the firm a nd a s a re sult, the re is no lo ss o f c o ntro l le a ving the o wne rs with
full o wne rship o f the firm (Be ttig nie s & Bra nd e r, 2007). Ho we ve r, so me firms ma y

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e nc o unte r d iffic ultie s in g e tting b a nk lo a ns d ue to the fina nc ia l g a p whic h c a n
b e e xp la ine d b y the info rma tio n a sym m e try b e twe e n e xte rna l fina nc ie rs a nd
b usine ss ma na g e rs (Sto re y, 1994). So me time s, b a nks a re no t willing to le nd to
firms b e c a use b a nks c o uld no t o b ta in suffic ie nt info rma tio n a b o ut the firm s to
ta ke a le nd ing d e c isio n. In o rd e r to so lve the info rm a tio n a sym m e try b e twe e n
b a nks a nd firms, two a p p ro a c he s fo r b a nks ha ve b e e n d isc lo se d .

The g o ing c o nc e rn a p p ro a c h e m p ha size s o n the future o f the firm while the

g o ne c o nc e rn a p p ro a c h fo c use s o n the p a st a nd the c urre nt situa tio n o f the
c o mp a ny. Thro ug h the se two a p p ro a c he s, b a nks ma ke the ir le nd ing d e c isio ns.
Be rry & G ra nt (2004) e xp la in a s “ the g o ing c o nc e rn a p p ro a c h” the a c tivity o f
c o lle c ting info rma tio n a b o ut future p ro sp e c ts o f the SME a s in b usine ss p la n,
inte rvie ws, a c c o unting info rm a tio n a nd m a rke t d a ta . O p p o site to tha t a p p ro a c h
is situa ting the firm in the wo rst c a se sc e na rio ; “ the g o ne c o nc e rn a p p ro a c h”
whic h e nc o ura g e s b a nke rs to c o lle c t c re d ib le sig na ls fro m c o m p a nie s
c o nc e rne d with se c uring the re p a ym e nt thro ug h va lua tio ns o f the a sse t b a se
(Be rry & G ra nt, 2004). To re d uc e the info rma tio n symme try fro m the p e rsp e c tive
c o mp a nie s, the tra nsp a re nc y o f sho uld b e inc re a se d b y d isc lo sing the ir
c o mp le te fina nc ia l sta te me nts. In o rd e r to re info rc e re lia b ility o f the info rma tio n
p ro vid e d b y the c o m p a nie s, a re c o m m e nd a tio n wo uld b e tha t the fina nc ia l
sta te me nts a re d e ve lo p e d b y a re sp e c te d a c c o unting c o mp a ny. In o rd e r to
o b ta in the fina nc ia l re so urc e s fo rm the b a nk a s we ll a s fa vo ra b le re p a yme nt
o p tio ns; the p re vio us re c o mme nd a tio ns re g a rd ing b o th a p p ro a c he s m ust b e
fo llo we d .

3.2.2 Inve stm e nts fro m Ve nture C a pita lists

Ve nture C a p ita l Fina nc ing is a no the r c o mmo n so urc e o f fina nc ing fo r SMEs. The
ma jo r d iffe re nc e b e twe e n Ve nture C a p ita lists (VC ) fund ing a nd b a nk fina nc e
a re the ma na g e ria l c o ntrib utio ns fro m the ve nture c a p ita list to wa rd s the ne w
ve nture . Ve nture c a p ita l fina nc e c o nsists p rima rily o f e q uity whic h imp lie s tha t
ve nture c a p ita lists ta ke p a rt in the m a na g e m e nt o f the firm s, in this wa y the y
se c ure p a rtia l o wne rs o f the c o mp a ny g a ining a le ve l o f c o ntro l in the ne w
ve nture . This a ttrib ute o f VC c o uld b e a b e ne fit to c o mp a nie s tha t ne e d e xte rna l
fina nc ing a nd ma na g e ria l inp uts fo r the firm, tha t is, b y sha re d o w ne rship o f the
ve nture the firm will re c e ive the a d vic e a nd e xp e rie nc e o f the ve nture c a p ita list,
inste a d o f o nly ha ving the p a ssive m o ne ta ry inp ut o f the b a nk lo a n.

It is im p o rta nt to d e no te tha t ve nture c a p ita list fina nc ing c o uld le a d to the

“ d o ub le mo ra l ha za rd ” p ro b le m . The d o ub le m o ra l ha za rd re fe rs to the
unve rifia b le e ffo rt p ro vid e d b y b o th e ntre p re ne ur a nd VC (Be ttig nie s & Bra nd e r,
2007). In so m e c a se s, the e ntre p re ne ur’ s e ffo rt c o nc e rning the b usine ss is
we a ke ne d b y the p a rtia l o wne rship fro m the VC . If ve nture c a p ita list ha ve hig h
e q uity sha re o f the firm , it will g e ne ra te c o nflic ts a rising fro m the e ntre p re ne ur’ s
lo ss o f c o ntro l. Ho we ve r, if the e q uity sha re o wne d b y VC s is to o lo w , it ma y
d e c re a se the ma na g e ria l inp uts to wa rd s the firms. The re fo re , the p o rtio n o f
e q uity o wne d b y VC s a nd the re la tio nship b e twe e n the m a nd e ntre p re ne urs is
c ruc ia l. Be twe e n the inp uts fo rm the ve nture c a p ita list to the firm sho uld b e ,

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b e sid e the fina nc ia l re so urc e s, kno wle d g e a b o ut the ma rke t, the ind ustry a nd
m a na g e m e nt (Be ttig nie s & Bra nd e r, 2007).

3.2.3 Inve stm e nts fro m Busine ss Ang e ls

Busine ss Ang e ls te nd to b e we a lthy ind ivid ua ls who va lue a no nymity a nd the ir
p riva c y a nd , unlike ve nture c a p ita lists, te nd to ta ke mo re risks a nd inve st la rg e
a mo unts o f mo ne y into a ne w ve nture . It is ho we ve r a d visa b le to ha ve a
b a c kg ro und c he c k o n the p e rso n who is inve sting in the c o mp a ny a nd it is
im p o rta nt to kno w e xa c tly the o utc o m e e xp e c te d o n the a rra ng e me nt b y e a c h
o f the p a rty invo lve d . Ad d e d b e ne fits o f Busine ss Ang e ls is tha t the y c o uld a lso
p ro vid e a d d itio na l kno wle d g e a nd e nc o ura g e m e nt in the ha rd tim e s, intro d uc e
yo u to p o te ntia l c usto me rs a nd c lie nts, a nd a ssist in find ing e sse ntia l e mp lo ye e s
fo r the ne w ve nture (Be ttig nie s & Bra nd e r, 2007).

It e xist a simila rity b e twe e n b usine ss a ng e ls a nd ve nture c a p ita lists, in c o ntra st

b usine ss a ng le s re p re se nt a n info rma l w a y o f o b ta ining fina nc ing fo r ne w
ve nture s. In to d a y’ s b usine ss e nviro nme nt, ve nture c a p ita list fund s p re fe r to inve st
in p ro je c ts whic h the y ha ve kno wle d g e a nd e xp e rie nc e a nd tha t a re va lua b le
to the m , the re fo re m a king it d iffic ult so me time s fo r e ntre p re ne urs to g a in a c c e ss
to the se typ e s o f fund s. Using d a ta g a the re d fro m sta tistic s, it is e stim a te d tha t
b usine ss a ng e ls ha ve a c tua lly inve ste d twic e the a mo unt o f mo ne y into ne w
ve nture s tha n ve nture c a p ita lists (Be ttig nie s & Bra nd e r, 2007).

3.2.4 Sha re Purc ha sing b y La rg e r Firm s fo r R&D purpo se s

Dix & G a nd e lm a n (2007) sp e a k a b o ut la rg e c o rp o ra tio ns p urc ha sing sma ll
sta rtup ve nture s fo r re se a rc h a nd d e ve lo p me nt (R&D) p urp o se s a s o p p o se d to
c a rrying o ut the se ta sks inte rna lly. Re se a rc h ha s sho wn tha t e ntre p re ne urs te nd
to b e mo re c o nc e rne d with p ro fita b ility a nd o wne rship sha ring a nd tha t R&D
c a rrie d o ut in ne w ve nture s te nd s to b e mo re p ro fita b le .

It is a lso sug g e ste d tha t p ro je c ts tha t a re riskie r, mo re d iffic ult a nd o f a hig he r

q ua lity te nd to wo rks b e tte r in ne w ve nture s. As a re sult, la rg e c o rp o ra tio ns te nd
to b e willing to inve st in a ne w ve nture e sp e c ia lly whe re b o th a re like ly to b e ne fit
fro m the re sults p ro d uc e d .

3.2.5 PIPE (priva te inve stm e nts in pub lic e q uity)

Ve nture C a p ita lists te nd to a vo id risky p ro je c ts. G ill (2006) d e sc rib e s the c a se o f
Bill Burns, the C EO o f Minra d , the fina nc ia l situa tio n o f the c o m p a ny a nd the
d e sire to o b ta in mo re fina nc ing . O ne o f the o p tio ns his inve sto rs g a ve him wa s
PIPE. This a llo ws p ub lic ly tra d e d c o mp a nie s, mo stly SMEs tha t tra d e sto c k o ve r the
c o unte r, to se ll sto c k to hig h ne t wo rth inve sto rs a t d isc o unte d p ric e s. Mo st o f
the se inve sto rs a re re fe rre d to a s He d g e fund s whic h a re a c tua lly inte re ste d in
inve sting in e a rly sta g e c o mp a nie s. It is a n a d visa b le o p tio n e sp e c ia lly sinc e it is
p o ssib le to o b ta in fina nc e s thro ug h this.

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3.2.6 Fina nc ia l Bo o tstra pping
In a d d itio n to e xte rna l fina nc e so urc e s, sma ll b usine sse s c o uld a lso a p p ly
d iffe re nt kind s o f fina nc ia l b o o tstra p p ing me tho d s. Fina nc ia l b o o tstra p p ing is a
c o nc e p t intro d uc e d b y Winb o rg & La nd strö m (2001) a nd re fe rs to the use o f
me tho d s fo r me e ting the ne e d fo r re so urc e s witho ut re lying o n lo ng -te rm
e xte rna l fina nc e fro m d e b t ho ld e rs o r ne w o wne rs.

Due to the info rm a tio n a sym m e try b e twe e n the e xte rna l fina nc ie r a nd the sm a ll
b usine sse s, the fina nc ia l c o st is hig he r fo r sm a ll b usine sse s. The hig h fina nc ia l c o st
ma ke s sma ll b usine sse s to use fina nc ia l b o o tstra p p ing me tho d s suc h a s d e la ying
p a ym e nts, minimizing a c c o unts re c e iva b le o r using sub sid y fina nc e to sa tisfy the
ne e d fo r re so urc e s. Thro ug h re se a rc h using a numb e r o f sma ll b usine sse s, o ne o f
the c o nc lusio ns d ra wn wa s tha t the ma jo rity o f the e xa mine d sma ll b usine sse s
trie d to m a na g e witho ut the a id o f e xte rna l fina nc ie rs. An e xa m p le is tha t 70% o f
the b usine sse s try to b uy use d e q uip me nt. This is a n id e a l so lutio n whe n o b ta ining
e xte rna l fina nc ing is d iffic ult o r whe n e xte rna l fina nc ing is sim p ly o ne o p tio n in a
p o o l o f fina nc ia l re so urc e s.

The re a re ma ny g ro up s o f fina nc ia l b o o tstra p p e rs with d iffe re nt o rie nta tio ns

to wa rd re so urc e a c q uisitio n. The mo st c o ntro ve rsia l o ne is re la tio nship -o rie nte d
b o o tstra p p e r. The re la tio nship -o rie nte d b o o tstra p p e rs p rim a rily o b ta in the
re so urc e s b a se d o n the ir p e rso na l re la tio ns. The use o f so c ia lly o rie nte d so lutio ns
se e ms to b e c o mp le me nta ry to fina nc ia l ma rke t so lutio ns. Ho w e ve r, it ma y re sult
in a b using re la tio ns, a nd furthe rmo re le a d to a risk o f je o p a rd izing the trust whic h
is the ve ry b a sis fo r the re la tio n (Ja rrillo , 1989). Thus, e ntre p re ne urs sho uld c a re fully
use the re la tio ns to a c q uire re so urc e s the y ne e d .

It is ha rd to sa y whic h c ho ic e o f fina nc ing o r c o st sa ving is a p p ro p ria te a nd it

wo uld no t b e c o rre c t to a p p o int o nly o ne typ e no rm a tive ly to a ll c o m p a nie s.
Suc h a c ho ic e wo uld d e p e nd o n the typ e o f the c o mp a ny, its a g e o r sta g e o f
d e ve lo p me nt, the ma rke t d yna mic s a nd ma ny mo re fa c to rs. While so me fa c to rs
ma y b e m o re im p o rta nt tha n o the rs a t first sa y, it ma y b e b e tte r to c o nsid e r mo st
fa c to rs simulta ne o usly in o rd e r to g e t a mo re re a listic a nd ho listic p ic ture o f the
p o te ntia l o f the c o m p a ny a nd its d e ve lo p m e nt. By intro d uc ing the d iffe re nt
a lte rna tive s o f fina nc e so urc e s, c o mp a nie s c o uld c o nsid e r the a d va nta g e s a nd
d isa d va nta g e s o f e a c h c ho ic e fo r the mse lve s b a se d o n the fa c to rs me ntio ne d .

3.3 Busine ss pla n

The b usine ss p la n is d e fine d a s a fo rma l, writte n d o c ume nt whic h d e sc rib e s the
na ture o f the b usine ss, o p e ra tio ns a nd stra te g ie s fo r the firm. (Do lling e r, 2003).
Ac c o rd ing to Burns (1990) the b usine ss p la n und e rlie s the o p p o rtunitie s o f the
ve nture a nd he lp s to re c o g nize the stre ng ths a nd we a kne sse s while a d d ing
struc ture to the p ro p o sa l o f the e ntre p re ne ur.

Busine ss p la ns a re c o nsid e re d a hig hly va lue d to o l to b e use d in o b ta ining

fina nc e , fo rming a llia nc e s, se tting the d ire c tio n o f a c o mp a ny o r a s a to o l to
me a sure the p e rfo rma nc e o f the firm (Burns & De whurst, 1990).

Pa g e | 15
Sinc e p la nning p ro vid e s a c le a r g o a l a nd a stra te g y to o b ta in it, the suc c e ss o f
the b usine ss p la n a s a d o c um e nt, must stre ss the c o mp a ny´s c a p a b ilitie s,
o b je c tive s und e rline the p a th o f a c tio n fo r a c c o mp lishing the g o a ls (Burns &
De whurst, 1990). A g o o d b usine ss p la n must re c o g nize stre ng ths a nd we a kne ss o f
the ve nture .

De ve lo p ing a b usine ss p la n se ts o ne o f the mo st im p o rta nt tra nsitio ns fo r the firm.

It d e fine s the sta g e whe n a n id e a b e c o me s into a to o l fo r g e ne ra ting va lue a nd
g ro wth. It is a rg ue d b y Burns & De whurst (1990) tha t the p ro c e ss o f p la nning the
ve nture ne e d s a n e xte nsive und e rsta nd ing o f the b usine ss a nd its e nviro nme nt. It
a lso p re p a re s the o wne r to fo re se e c ha lle ng e s a nd se rve s to ste e r the b usine ss
into the d e sire d d ire c tio n.

Burns & De whurst (1990) e sta b lishe s tha t e ve ry b usine ss o p p o rtunity c o nta ins
d iffe re nt c ha ra c te ristic s a nd c a n b e vie we d fro m se ve ra l d iffe re nt p e rsp e c tive s.
Ad a p ting the b usine ss p la n to the ta rg e t sp e c ific sta ke ho ld e rs a nd a c c o rd ing to
the o utc o me p ursue d ma ke s it a n e xc e lle nt to o l tha t g ive s a b e tte r
und e rsta nd ing o f the b usine ss.

Fro m the inve sto r’ s p o int o f vie w, a b usine ss o p p o rtunity m ust b e b a c ke d up b y a

b usine ss p la n tha t g ive s a p o te ntia l o f a hig h re turn a nd a n e ffic ie nt wa y o f
e xp lo iting the o p p o rtunity p re se nte d (Burns & De whurst, 1990). Furthe rm o re Ric h
& G um p e rt (1985) e nsure s tha t in o rd e r to a ttra c t inve stm e nt a n id e a m ust b e
sup p o rte d b y a c o mp le te b usine ss p la n tha t re ve a ls the c usto me r’ s inte re st a nd
the wa y tha t the fina nc ia l p ro je c tio ns will b e .

The q ua lity o f the te a m tha t is d e ve lo p ing the id e a is sa id to b e c ruc ia l fo r

inve sto rs, Tim m o ns (1999) d e sc rib e s the b e ne fit o f ha ving a g re a t te a m with a
g o o d id e a ra the r tha n a g o o d te a m with a g re a t id e a .

Burns & De whurst (1990) hig hlig ht the p rinc ip le o f ke e p ing the b usine ss p la n
c o nc ise ; it m ust c o nta in e no ug h sub sta nc e in the c ha p te rs to b e a b le to c o ve r
the sub je c ts e ffe c tive ly while ma inta ining the re a d e r’ s inte re st.

Eve n whe n Ric h & G ump e rt (1985) sta te tha t a b usine ss p la n must c o nta in
p ro je c tio ns with a five ye a r p ro fita b ility, tha t will sho w the inve sto rs whe n the y
re c e ive the re turn o f the ir mo ne y, Sa hlma n (1997) re c o mme nd s to inc lud e no
mo re tha n a ye a r in fina nc ia l p ro je c tio ns, sinc e a ne w c o mp a ny fa c e s to o m uc h
unp re d ic ta b ility to p ro d uc e a re a l fo re c a st. Wha t is true is tha t the fina nc ia l
p ro je c tio ns a nd fo re c a st ne e d to b e inc lud e d ; the fina nc ia l info rma tio n must
p re se nt the b usine ss mo d e l tha t the ve nture will ho ld a nd ho w it will b e c o me
p ro fita b le .

Sa hlma n (1997) p ro vid e s a fra me wo rk whe re the b usine ss p la n must fo llo w , it

inc lud e s the c ritic a l fa c to rs whe re a ve nture re lie s o n b e c o ming a suc c e ss o r a
fa ilure ; the se a re (1) The p e o p le tha t a re sta rting the ve nture a s we ll a s the
o utsid e p a rtie s tha t p ro vid e se rvic e s o r imp o rta nt re so urc e s.(2)The o p p o rtunity
a nd p ro file o f the b usine ss itse lf a nd the wa y it c a n g ro w o r e xp a nd ; it is a lso
imp o rta nt to inc lud e the e c o no mic s a nd the b a rrie rs tha t p re ve nt its suc c e ss.

Pa g e | 16
(3)The
h b ig p ic ture
t o r c o nte xt, tha t re fe rs to va ria b le s tha
t t the e ntre p re ne ur u
c a nn
no t c o ntro l a s the re g ula
u to ry e nv
viro nm e nt, the
t inte re stt ra te s o r d e m o g ra p hic
tre nd
d s (4) Risk a nd re wa rd , a n und e rssta nd ing o f the thing s tha t c a n g o rig ht a n d
wro ng
n a nd the stra te g y o f the e ntre p re ne uria l te a m to o ve rcc o m e tho se
situa tio ns.

Burnss & De whu urst (1990) e nsure tha a t the re is no

n fo rmula a fo r writing g a b usine ss s
p la n , sinc e e ve ry d o c um u e nt o f this na tu ure must b e a d a p te t d to th e
c irc um
u sta nc e s a nd with a fo c us o n the ta rg e t re a d e r. Bu urns & De whurst
w (1990 0)
p ro v id e s g e ne ra
r l g uid a ncc e a s o utlline whe n writing a b usine ss p la n. It m usst
c o ntta in a n (1) o ve rvie w o f the c o m p a ny, (2)) info rm a tioo n a b o ut the ind ustrry
whe re r is g o ingg to b e e stta b lishe d , (3)the p ro d uc ts o r see rvic e s o ffee re d , (4)th e
m a rkke t a nd the m a rke tin ng , (5) d e sig
s n a nd d e ve lo p me ntn o f the p ro d uc t, (6 6)
m a n ufa c turing a nd o p e ra a tio ns, (7) m a na g e m e nt te a m, ( 8) fina nc ia l p ro je c tio ns
n
a nd re q uire me nts,
n (8) fina ncn ia l p la n a nd (9) a p p e nd ix.

C o m p a ring thee p ro p o sa ls fo rm Burnss & De w hurrst (1990) a nd Sa hlm a n (1997) th e

ne xt fig ure is b uilt
u ( Fig ure 3-3 C o mp a riso ns b e tw we e n C o n te nt o f a Busine
B ss Pla n
(Burnns & De whu urst, 1990) (S Sa hlm a n, 19997) ). The m o d e l sho ws
w the d iffe re
r nt se c tio ns
n
tha t the e ntre p re ne ur m ust u stre ss in n o rd e r to ha ve a su uc c e ssful ve
v nture . Th e
suc c e ss o f a ve nture d e p e nd s o n a we lll tho ug ht b usine ss p la n whicc h
c o m m unic a te s a d e e p un nd e rsta nd in g o f the vee nture .

•(7) ma na g e m e nt te a m
•(6) ma nufa c tu ring a nd o p e ra tio ns
The Pe o p le

•(1) o ve rvie w o f the c o m p a ny

•(3) the p ro d uc ts
t o r se rvic e s o ffe re d
The
•(5) d e sig n a nd d e ve lo p m e nt o f the p ro
o d uc t
O p o rtunity

•(2) info rma tio n a b o ut the ind ustry

The •(4) the m a rke t a nd the ma rker ting
C o nte xt

•(8) fina nc ia l p la
an
Risk a nd
e wa rd
Re

Fig u
ure 3- 3 C o m p a riso ns b e twe
e e n C o nte nt o f a Busine ss Pla
P n (Burns & De
D whurst, 199
9 0) (Sa hlm a n,
1997)

Pa g e | 17
3.3.1 The Busine ss a nd its Fina nc e s
As sta te d a b o ve , the re is a va rie ty o f fa c to rs o n whic h a ve nture d e p e nd s.
Ho we ve r, a c o mp o ne nt tha t is a lwa ys p ivo ta l fo r the b usine ss p la n is the
fina nc e s. Sinc e the re ma ining va ria b le s a re unc e rta in a nd inte rc ha ng e a b le , I
ha ve c ho se n to fo c us o n the te rms use d in the fina nc ia l se c tio n o f the b usine ss
p la n. Fo r a b usine ss to b e suc c e ssful the b usine ss p la n sho uld inc lud e a
c o mp re he nsive fina nc ia l p la n in o rd e r to la unc h a nd d e ve lo p stra te g ie s fo r the
ve nture . The fina nc ia l p la n is a vita l to o l tha t he lp s the e ntre p re ne ur ma na g e the
b usine ss a nd a lso a ttra c t p o ssib le inve sto rs. It is im p o rta nt to se e the fina nc ia l
sta te m e nts a s a wa y to m e a sure the he a lth a nd the stre ng th o f the firm , inste a d
o f o nly a re p o rting to o l fo r a sse ts a nd lia b ilitie s tha t the firm ha s. Due to the
imp o rta nc e o f sha re ho ld e r va lue , fina nc ia l sta te me nts p ro vid e a c ruc ia l
ing re d ie nt in o rd e r to e xp la in the va lue o f the firm a nd a b a sis fo r a d e c isio n
ma king p ro c e ss o r a stra te g y c re a tio n (C o llie r, 2007).

Sinc e e ntre p re ne urs c o me fro m a lmo st a ny d isc ip line , it is ma nd a to ry tha t the y

ha ve a n und e rsta nd ing o f a c c o unting a nd o ve rc o m e the “ la ng ua g e b a rrie r”
tha t mig ht e xist with a n a c c o unta nt, this is, ha ve a c o m p re he nsio n o f the
fina nc ia l sta te me nts, the vo c a b ula ry o n the fie ld , a nd me a ning o f ke y ra tio s. The
ma in fina nc ia l sta te me nts tha t sho w ho w the c o mp a ny is wo rking fina nc ia lly a re
the b a la nc e she e t, the inc o me sta te me nt a nd the sta te m e nt o f c a sh flo w
(C o rnwa ll & Va ng , 2004)

The b a la nc e she e t is a p ic ture tha t c o nta ins the fina nc ia l p o sitio n o f the b usine ss;
this g ive s the o wne rs a n e stim a te o f the wo rth o f the ir c o m p a ny o n a g ive n d a te .
It is c o m p o se d b y two m a yo r se c tio ns: o ne tha t p re se nts the a sse ts tha t the
b usine ss o wn a nd the o the r o ne the lia b ilitie s tha t the o wne rs ha ve a g a inst tho se
a sse ts (Zimme re r & Sc a rb o ro ug h, 2008).

The fund a me nta l e q ua tio n fo r a c c o unting b uild s the b a la nc e she e t re p o rt,

whe re a sse ts must b e e q ua l to the lia b ilitie s p lus the o wne r’ s e q uity. Tha t me a ns
tha t a ny inc re a se o r d e c re a se o n o ne sid e o f the e q ua tio n must inc re a se o r
d e c re e s o n the o the r sid e a iming fo r the b a la nc e o f the mo ne y in the firm.

Fo llo wing the fund a me nta l e q ua tio n, the b a la nc e she e t is d ivid e d into thre e
se c tio ns; the Asse ts whe re the list o f p o sse ssio n o f the firm o wns a re d isp la ye d .
The lia b ilitie s re fe rre d a s the o b lig a tio ns o f the c o m p a ny to wa rd s the c re d ito rs
a nd the o wne r’s e q uity , whic h is the rig ht o f a n o wne r to wa rd s the va lue o f the
o wne r´s inve stme nt in the b usine ss.

Ta king a ste p fo rwa rd in the le ve l o f a b stra c tio n o n the c o m p o ne nts o f the

e q ua tio n; a sse ts a re c a te g o rize d into (1) c urre nt a sse ts c o mp o se d b y c a sh a nd
ite ms tha t will b e c o nve rte d into c a sh within o ne ye a r o f o p e ra ting c yc le o f the
c o mp a ny. (2)Fixe d a sse ts a re tho se o b ta ine d fo r a lo ng te rm use in b usine ss suc h
a s la nd , b uild ing s o r e q uip m e nt. Lia b ilitie s a re c o m p o se d b y two se c tio ns c urre nt
lia b ilitie s a nd lo ng te rm lia b ilitie s whe re the first re fe rs to the d e b ts tha t must b e
p a id within o ne ye a r while lo ng te rm re fe rs to d e b ts d ue a fte r a ye a r (Zimme re r &
Sc a rb o ro ug h, 2008)

Pa g e | 18
Fo r e xp la ining the inc o me sta te me nt it is e a sie r to re fe r to it a s a p ro fit a nd lo ss
sta te me nt whic h c o mp a re s the e xp e nse s b e sid e s the re ve nue in a sp e c ific
p e rio d o f time . This c o mp a riso n b ring s the ne t p ro fit o r lo ss o f the firm a s a re sult
a nd sho ws the e vo lutio n o f the p ro fit o f the firm o ve r time .

The ne xt to o l tha t Zim m e re r & Sc a rb o ro ug h (2008) c la rifie s is the sta te me nt o f

c a sh flo ws tha t is a re fle c tio n fro m the c ha ng e s o f the wo rking c a p ita l d uring a
ye a r; this sta te me nt must sho w the so urc e a nd the use s o f the c a sh. Fo r
p re p a ring the c a sh flo w sta te me nt it is ne c e ssa ry to summa rize the p re se nt ye a r
o f o p e ra tio ns b a se d o n the b a la nc e she e ts a nd inc o me sta te me nts.

In o rd e r to o b ta in b usine ss g o a l, a fina nc ia l p ro je c tio n sho uld b e c re a te d . The se

p ro je c te d sta te me nts a re kno wn a s p ro -fo rma sta te m e nts, a nd the y a re use d
m a inly to e stim a te the p ro fita b ility a nd o ve ra ll c o nd itio n o f the firm in the future .
The d e ve lo p me nt o f this sta te me nts fulfill ma inly two p urp o se s, se tting the p a th
tha t the c o mp a ny will fo llo w a nd to c o nvinc e the inve sto rs fo r g e tting the
c o mp a ny o f the g ro und (Zimme re r & Sc a rb o ro ug h, 2008)

3.3.2 Ra tio s
Zim m e re r & Sc a rb o ro ug h (2008) d e fine s the ra tio a na lysis a s the “ m e tho d o f
e xp re ssing the re la tio nship b e twe e n a ny two a c c o unting e le me nts tha t a llo w
b usine ss o wne rs to a na lyze the fina nc ia l p e rfo rma nc e o f the ir c o mp a nie s” . By
lo o king a t d iffe re nt ra tio s; inve sto rs, e mp lo ye e s, ma na g e rs a nd sta ke ho ld e rs c a n
o b se rve ho w the firm is b e ha ving . The ra tio s a nd the ir inte rp re ta tio ns he lp s to
und e rsta nd ho w the re so urc e s a re b e ing p la c e d a nd the re la tio nship the y ho ld
to wa rd s fulfilling sp e c ific d e m a nd s.

The mo st c o mmo n typ e o f a na lysis use d b y e ntre p re ne urs fo r me a suring the

b re a k-e ve n a na lysis, this typ e o f stud y lo o ks fo r the p o int whe re the firm c ha ng e s
fro m a lo ss to a p ro fit, this p o int is lo c a te d e xa c tly ze ro , whe re the c o m p a ny d o e s
no t e a rn o r lo se s mo ne y. Ano the r ra tio use d is the b urn ra te ra tio ; a c o nc e p t
re la te d to the usa g e o f inve stme nt insid e the sta rtup c o m p a ny whe n the re is
no np ro fit g e ne ra te d fro m sa le s. In sp e c ific it re fe rs to the time tha t a ne w o r
unp ro fita b le c o m p a ny use s up the initia l inve stm e nt until it runs o ut o f m o ne y o r it
c lo se s (C o llie r, 2007).

4 Applie d Kno wle dg e

Ke e p ing a ll the a b o ve the o re tic a l b a c kg ro und in mind ; fro m the d e finitio ns a nd
func tio ns o f e ntre p re ne urship to fina nc ia l ma tte rs, a c o mp le te b usine ss p la n fo r
e sta b lishing a firm ha s b e e n c o nstruc te d . C re a ting this p la n ha s p ro vid e d d e e p
und e rsta nd ing o f the b usine ss a nd it se ts the g o a ls a nd o b je c tive s fo r the
c o m p a ny a s we ll a s e sta b lishing a d e ta ile d p ro je c tio n a b o ut its future . He re b y
fo llo w the sp e c ific b usine ss p la n fo r the ve nture Kyne So lutio ns; the va rio us a re a s
tre a te d a re p re se nte d in the ta b le o f c o nte nts b e lo w.

Pa g e | 19
Busine ss Pla n
Kyne So lutio ns

Jo sé Alfo nso Ta la ma nte s Pa vó n

C o p yrig ht 2009 © Kyne So lutio ns

 Ta b le o f C o nte nts

Busine ss Pla n Ta b le o f C o nte nts

1 Exe c utive Summa ry ..................................................................................................... 1

2 G e ne ra l C o mp a ny De sc rip tio n ................................................................................. 1

2.1 Missio n .................................................................................................................... 1

2.2 C o mp a ny O b je c tive s .......................................................................................... 1

2.3 Busine ss Philo so p hy .............................................................................................. 2

2.4 Ke ys to Suc c e ss..................................................................................................... 2

3 C o mp a ny Pre se nta tio n .............................................................................................. 2

4 C o rp o ra te O ve rvie w ................................................................................................... 3

4.1 C re a tio n o f the c o rp o ra tio n ............................................................................... 3

4.2 The Te a m ................................................................................................................ 3

4.2.1 Jo sé Ta la m a nte s (Fo und e r / C EO ) .............................................................. 3

4.2.2 Hé c to r C á rd e na s (Fo und e r / C TO ) ............................................................. 3

4.3 Le g a l fo rm o f c o mp a ny O wne rship .................................................................. 4

5 Se rvic e s .......................................................................................................................... 4

5.1 Future Pro d uc ts a nd Se rvic e s ............................................................................. 5

6 Ma rke t Ana lysis Sum m a ry ........................................................................................... 5

6.1 Ma rke t re se a rc h ................................................................................................... 5

6.2 Size o f the ma rke t ................................................................................................. 6

6.2.1 Ma rke t Se g me nta tio n .................................................................................. 6

6.3 Ma rke t Entry Ba rrie rs............................................................................................. 7

6.3.1 O ve rc o ming the Ba rrie rs .............................................................................. 7

6.4 Po te ntia l C o mp e titio ns........................................................................................ 7

6.4.1 C o mp e titio n ................................................................................................... 7

6.4.2 Lo c a l c o m p e tito rs’ se rvic e s: ....................................................................... 8

6.4.3 Nic he ............................................................................................................... 9

6.4.4 Distrib utio n C ha nne ls.................................................................................... 9

 Ta b le o f C o nte nts

6.5 Ta rg e t Ma rke t Se g m e nt Stra te g y ...................................................................... 9

6.6 Re a c hing the Ta rg e t ma rke t .............................................................................. 9

6.7 Ma rke ting Mix Mo d e l (4p ´s) .............................................................................. 10

6.7.1 Pric e ............................................................................................................... 10

6.7.2 Pro mo tio n ..................................................................................................... 11

6.7.3 Pla c e ............................................................................................................. 11

6.7.4 Pro d uc t ......................................................................................................... 11

7 Fina nc ia l Pla n ............................................................................................................. 11

7.1 Sta rt-up Summa ry ............................................................................................... 12

7.1.1 Sta rt-up Re q uire me nts ............................................................................... 13

7.1.2 Fund ing the sta rtup Re q uire me nts........................................................... 13

7.2 Sa le s Fo re c a st (2009-2011) ................................................................................ 15

8 Ap p e nd ix A ................................................................................................................... 1

8.1 C urric ulum Vita e Jo sé Alfo nso Ta la ma nte s Pa vó n ......................................... 1

8.2 C urric ulum Vita e Hé c to r C á rd e na s Ma rtíne z .................................................. 3

9 Re fe re nc e s ................................................................................................................... a
1 Exe c utive Sum m a ry
Kyne So lutio ns is a we b d e ve lo p me nt c o mp a ny with a n e xte nsive skill se t fo r
und e rsta nd ing the ir c lie nts’ ne e d s a nd d e ve lo p ing the ir syste ms a c c o rd ing to the ir
re q uire me nts. We d e live r c re a tive , sc a la b le we b so lutio ns tha t re fle c t the visio n a nd
ne e d s o f o ur c lie nts. The suc c e ss o f o ur c lie nts is o ur g o a l; we a c c o mp lish this b y
g e ne ra ting ne w b usine ss o p p o rtunitie s b y the ir p re se nc e o n the Inte rne t.

Kyne So lutio ns is d e fine d a s a sta rt-up firm lo c a te d in the in Sc ie nc e Pa rk in the c ity o f

Jö nkö p ing , Swe d e n. The firm o ffe rs we b -re la te d se rvic e s a nd so lutio ns whic h inc lud e
we b site d e sig n, so ftwa re d e ve lo p me nt, syste m ma inte na nc e , c o nsulting , we b -
ma rke ting a nd we b a na lysis.

The c re a to rs o f the firm d ra w the ir kno wle d g e fro m b a c he lo r a nd ma ste r d e g re e s in

c o mp ute r e ng ine e ring , sp e c ia lizing in info rm a tio n te c hno lo g y. The firm’ s c a p a b ility
to a ssist o the r c o mp a nie s in p ro vid ing sup e rio r se rvic e fo r a ny b usine ss- fro m sta rt-up s
to la rg e c o rp o ra tio ns- c o me s fro m p re c e d e nt e xp e rie nc e in ma na g ing te c hno lo g y
p ro je c ts.

The d e m a nd ra te fo r we b d e ve lo p me nt a nd IT c o nsulting se rvic e s in the sma ll

c o mp a nie s ha s a nd will c o ntinue to ha ve a c o ntinuo us g ro wth. The ra tio b e twe e n
we b d e ve lo p me nt c o mp a nie s a nd the d e ma nd fro m c o mp a nie s ne e d ing the se
se rvic e s is still hig h a nd e xp a nd ing . Kyne So lutio ns ha ve the c o m m itme nt o f
c o ntinuo usly e nha nc e the ir p ro c e ss a nd p ro c e d ure s with the a im o f b e ing mo re
e ffic ie nt. Re d uc tio n o f p ro je c t c o sts a llo ws us to p ro d uc e a hig h q ua lity we b
d e ve lo p me nt se rvic e s fo r c o rp o ra tio ns a t a c o mp e titive c o st fo r the ir c lie nts.

This d o c um e nt will hig hlig ht the m o st imp o rta nt a sp e c ts o f the b usine ss a nd

p ro c e d ure s.

2 G e ne ra l C o m pa ny De sc riptio n

2.1 Missio n
Kyne So lutio ns is a n info rma tio n te c hno lo g y p ro vid e r tha t p ro d uc e s hig h q ua lity
se rvic e s tha t g e ne ra te a nd ma ximize b usine ss o p p o rtunity fo r the ir c usto me rs.

2.2 C o m pa ny O b je c tive s

1. G e ne ra te p ro fe ssio na l we b d e ve lo p me nt.
2. Pro d uc e a nd ma inta in sa tisfa c tio n fo r a ll o ur c lie nts.
3. Ma ximize the va lue o f o ur c usto m e rs firm b y the ir p re se nc e o n the Inte rne t.
4. Pro je c t a stro ng c o rp o ra te im a g e a nd c le a r info rma tio n o f o ur se rvic e s a nd
sa mp le p o rtfo lio .
5. Pro d uc e a d e ta ile d p ro je c t p ro c e ss to se t the b o und a rie s, a llo c a te
re so urc e s, a nd a c c o mp lish time ta rg e ts. This p ro c e ss a ime d o n e ffic ie nc y
a nd will he lp o ur c lie nts und e rsta nd the p ro c e ss.
6. Ba se the b usine ss p ra c tic e s o n a hig h le ve l o f e thic s.

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2.3 Busine ss Philo so phy
Kyne So lutio ns is a we b b a se d d e ve lo p me nt c o mp a ny with a n e xte nsive skill se t fo r
und e rsta nd ing ne e d s a nd d e ve lo p ing syste ms a c c o rd ing to re q uire me nts. We
d e live r c re a tive , sc a la b le we b so lutio ns tha t re fle c t the visio n a nd ne e d s o f o ur
c lie nts. O ur g o a l is the suc c e ss o f o ur c lie nts a nd the c re a tio n o f ne w b usine ss
o p p o rtunitie s b y the ir p re se nc e o n the Inte rne t.

O ur d e ve lo p me nts a re ma inly fo c use d o n:

•
•
Sta rt-up c o mp a nie s

•
SME´s (sma ll a nd me d ium e nte rp rise s)

•
Pe rso na l site s

•
Stud e nts

•
Asso c ia tio ns
Eve nts

Kyne So lutio ns will d e ve lo p into a susta ina b le c o m p a ny tha t g e ne ra te s kno wle d g e ,

inc o me a nd ho ld s the a b ility o f e xp a nsio n.

2.4 Ke ys to Suc c e ss

1. C le a r und e rsta nd ing a nd id e ntific a tio n o f o ur c lie nt re q uire me nts.

2. Tra nsla tio n o f o ur c usto m e r id e a s into d e ve lo p m e nts tha t fit the ir
re q uire me nts.
3. O ffe r a hig h-e nd we b d e ve lo p me nt to b usine ss in a wa y tha t the y c a n
a ffo rd .
4. Effic ie nt re so urc e a llo c a tio n to e a c h p ro je c t.
5. Do c ume nta tio n o f the p ro c e ss a nd info rming o ur c lie nts a b o ut the
p ro g re ss.
6. Id e ntific a tio n o f the se g me nts o f o ur c o mp a ny tha t p ro vid e s we b re la te d
se rvic e s (w e b site ma inte na nc e , ho sting , we b re d e sig n, a nd se a rc h
e ng ine o p timiza tio n, m a rke ting a nd c o nsulting ).
7. Esta b lish stra te g ic p a rtne rship s with se rvic e p ro vid e rs, c o nsulting
c o mp a nie s a nd we b re la te d ma rke ting g lo b a lly a nd re g io na lly.

3 C o m pa ny Pre se nta tio n

Kyne So lutio ns is a we b d e ve lo p me nt c o mp a ny with a n e xte nsive skill se t fo r
und e rsta nd ing o ur c lie nts’ ne e d s a nd d e ve lo p ing syste ms b a se d o n the ir ne e d s a nd
a c c o rd ing to the ir re q uire me nts. We d e live r c re a tive , sc a la b le we b so lutio ns tha t
re fle c t the visio n a nd ne e d s o f o ur c lie nts. O ur g o a l is the suc c e ss o f o ur c lie nt a nd
the c re a tio n o f ne w b usine ss o p p o rtunitie s b y the ir p re se nc e o n the Inte rne t.

Kyne So lutio ns is a n Info rma tio n Te c hno lo g y p ro vid e r, whe re e m e rg ing c o mp a nie s
a nd sma ll b usine ss a s o ur c usto me rs c a n re ly fo r o utso urc ing the ir IT.

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4 C o rpo ra te O ve rvie w

4.1 C re a tio n o f the c o rpo ra tio n

In the ye a r 2008 o f Kyne So lutio ns e me rg e fro m se ve ra l re q ue sts fro m sta rtup
c o m p a nie s to d e ve lo p the ir we b site a nd c o rp o ra te im a g e to p ro mo te the ir
p ro d uc ts. As a te a m we o b se rve d tha t the re we re se ve ra l firms tha t we re p ro d uc ing
site s a nd p ub lishing the m o ve r the Inte rne t a nd id e ntifie d tha t the q ua lity a nd c lie nt
re q uire m e nts we re no t fulfille d , tha t fa c t p e rsua d e d us to c o mmit o ur e ffo rts into
b uild ing a we b b a se d so lutio ns firm tha t se rve s a who le va rie ty o f e nte rp rise s, fro m
the sta rtup -c o mp a ny to a la rg e g o ve rnme nt g ro up firm s, with a n e xte nsive ra ng e o f
se rvic e s, lo c a te d in o ne p la c e .

Kyne So lutio ns o ffic e s a re lo c a te d o n the Sc ie nc e Pa rk in Jö nkö p ing , whe re the sta rt

up a c tivity in this c ity ta ke s p la c e ; it is lo c a te d ne a r Jö nkö p ing Unive rsity whe re the
ma jo rity o f id e a s e me rg e . As a n inte rne t firm we a re c o mmitte d o n d e ve lo p ing
p ro d uc ts a nd se rvic e s tha t ha ve the ir ma in fo c us o ur c lie nts’ a d va nc e me nt in a
lo c a tio n fre e e nviro nme nt. We ha ve a s a c o mmo n p ra c tic e ma na g ing p ro je c ts
inte rna tio na lly a id e d b y te le c o m m unic a tio n te c hno lo g y.

4.2 The Te a m

4.2.1 Jo sé Ta la m a nte s (Fo unde r / C EO )

Jo sé Ta la ma nte s is a d yna mic le a d e r with e xte nsive e xp e rie nc e in we b
d e ve lo p me nt a nd d e sig n, p ro je c t ma na g e me nt a nd c usto me r re la tio ns with p riva te
se c to r c lie nts. He is fa milia r with te c hnic a l e nviro nme nt a nd is c o nsta ntly up d a te d
with the te c hno lo g ic a l g ro wth o f the we b . He ho ld s a B.Sc . in c o m p ute r sc ie nc e
fro m the Institute o f Te c hno lo g y o f Mo nte rre y, Me xic o C ity, a Ma ste rs in Sc ie nc e with
a m a jo r in C o m p ute r Eng ine e ring , sp e c ia lizing in info rm a tio n te c hno lo g y fro m the
sc ho o l o f e ng ine e ring in Jö nkö p ing a nd p ursuing a Ma ste r o f Sc ie nc e in Busine ss
Ad ministra tio n b y Jö nkö p ing Inte rna tio na l Busine ss Sc ho o l.

Jo sé ha s sp e c ific skills in the fo llo wing a re a s:

•
•
Pro je c t ma na g e me nt.

•
Ima g ing a nd we b g ra p hic s.

•
Time a nd re so urc e s o p timiza tio n.

•
Te c hnic a l sta ff ma na g e me nt.

•
C o nsulta nc y.

•
Busine ss stra te g y a nd e xe c utio n.

•
Pe rfo rma nc e a nd q ua lity c o ntro l a nd a ssura nc e .
Ne two rking te c hno lo g ie s.

4.2.2 Hé c to r C á rde na s (Fo unde r / C TO )

Hé c to r C a rd e na s is a n e xp e rie nc e d so ftwa re d e ve lo p e r with o ve r 7 ye a rs o f
c o mb ine d e xp e rie nc e in a p p lic a tio ns d e ve lo p me nt a nd ha rd wa re sup p o rt. He is
fa milia r with the c usto me r re la tio nship s with fe d e ra l a nd sta te g o ve rnme nt
c usto me rs. Hé c to r ho ld s a B.Sc . in c o mp ute r sc ie nc e fro m the Institute o f Te c hno lo g y
o f Mo nte rre y, Me xic o C ity a nd a lso a Ma ste rs in Sc ie nc e with a ma jo r in C o mp ute r

Pa g e | 3
Eng ine e ring sp e c ia lizing in info rm a tio n te c hno lo g y g ive n b y the sc ho o l o f
e ng ine e ring in Jo nko p ing , Swe d e n.

Hé c to r ha s sp e c ific skills in the fo llo wing a re a s:

•
•
Info rma tio n Arc hite c ture

•
Distrib ute d Ap p lic a tio ns De ve lo p m e nt

•
Ente rp rise IT Syste ms

•
Ad ministra tio n a nd sup p o rt o f Ha rd wa re a nd So ftwa re .

•
IT Stra te g y a nd Exe c utio n.
Ba c ke nd e le me nts p ro g ra mming

The C EO a nd C TO re la tio nship is d yna m ic a nd c o m p le m e nta ry; b o th p a rtie s ha ve

c la rity o n the ir invo lve m e nt a nd a c c o unta b ility insid e the firm .

4.3 Le g a l fo rm o f c o m pa ny O wne rship

Kyne So lutio ns is a tra d e ma rk o wne d b y its fo und e rs, Jo sé Ta la ma nte s a nd Hé c to r
C á rd e na s, who e a c h ha ve a so le p ro p rie to rship . As the o p e ra tio n g ro ws,
c o nsid e ra tio ns will b e ta ke n into tra nsfo rming the firm into a limite d c o mp a ny
d e p e nd ing o n future b usine ss ne e d s. Aktie b o la g (AB) is the na m e tha t a limite d
c o mp a ny in Swe d e n. The d iffe re nc e b e twe e n the limite d c o mp a ny a nd so le
p ro p rie to rship a re the re sp o nsib ilitie s a nd risks. The limite d c o mp a ny p ro vid e s a
hig he r fina nc ia l p ro te c tio n to the o wne rs a nd p ro vid e s a re la tio nship b e twe e n the
sta ke ho ld e rs a nd the sha re the y ho ld . 1

5 Se rvic e s
Kyne So lutio ns is a p ro vid e r o f full-se rvic e info rma tio n te c hno lo g y fo r sma ll b usine sse s,
whic h fo c us ma inly we b -b a se d so lutio ns. The se rvic e s d e live re d a re a re fle c tio n o f
the visio n a nd ne e d s o f o ur c lie nts ha ving a lwa ys the ir suc c e ss a s o ur mo tiva tio n.

O ur so lutio ns a re b a se d o n a c o nsulting p ro c e ss tha t he lp s us id e ntify o ur c lie nt’ s

re q uire m e nts a nd tra nsla te the m into d e ve lo p m e nts tha t he lp the m re a c h the ir
g o a ls. The sa tisfa c tio n o f o ur c lie nt is o ur p rima ry o b je c tive a nd we will a ssist the m in
re a c hing the ir te c hno lo g ic a l b usine ss o b je c tive s.

Kyne So lutio ns o ffe r hig h e nd so lutio ns whic h a re :

• We b site s. - The o utc o m e o f this p ro d uc t is to g e ne ra te a n o utsta nd ing

p re se nc e o n the Inte rne t. The fo c us o f this so lutio n is o ffe ring a nd p ro mo ting
p ro d uc t/ se rvic e s o ve r the Inte rne t. It is inc lud e d within this se g m e nt, we b site
d e sig n a nd re d e sig n, up g ra d e s a nd we b site ma inte na nc e .
• We b Ba se d Applic a tio ns. - Inte rne t a s a n inte ra c tio n a nd c o mmunic a tio n to o l
g ive s the p o ssib ility to g e ne ra te a p p lic a tio ns tha t p ro d uc e b usine ss
o p p o rtunitie s. This p ro d uc t/ se rvic e will a ssist o ur c usto me rs to re a c h the ir
b usine ss o b je c tive s a nd he lp the m to c o ntro l the ir b usine ss o p e ra tio ns. As
e xa m p le s o f this so lutio n we c a n m e ntio n d a ta b a se c o nstruc tio n,

1 Uhttp :/ / www.b o la g sve rke t.se / in_e ng lish/ d o _yo u_wa nt/ sta rt_b usine ss/ tra d ing _p a rtne rship / U

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 a ud io / vid e o fe e d , e -e d uc a tio n p la tfo rms a nd intra ne t d e ve lo p me nt a mo ng
o the rs.
• C o nsulta nc y Tim e . Due to o ur b a c kg ro und a nd kno wle d g e w e c a n o ffe r
so lutio ns within a ny a re a o f the Info rma tio n Te c hno lo g y a nd C o mmunic a tio n
fie ld . This se rvic e e xte nd s fro m a simp le c o nfig ura tio n to the c o mp le te
ma na g e m e nt o f a p ro je c t.

5.1 Future Pro duc ts a nd Se rvic e s

It is im p o rta nt to re ma rk tha t Kyne So lutio ns, a s a n IT c o mp a ny, is c o nsta ntly b e ing
up d a te d a nd a wa re o f te nd e nc y in the te c hno lo g y a s we ll a s c ha ng e s in the
ind ustry. The firm is c o mmitte d to im p ro ve its b usine ss a nd p ro c e ss, re ne wing the
id e a s so it c a n o ffe r hig h e nd d e ve lo p me nts. Furthe rmo re , Kyne So lutio ns will
inc o rp o ra te so me o f the ne xt se rvic e s within a ye a r, a d justing to the c lie nt ne e d s
a nd ma rke t tre nd s:

• We b Ho sting
• Ed uc a tio n se mina rs
• E-le a rning
• Lo c a l Are a Ne two rk (LAN) insta lla tio n
• Intra ne t se tup a nd insta lla tio n
• Re sult-b a se d we b site ma rke ting
• C o nte nt ma na g e me nt syste ms

6 Ma rke t Ana lysis Sum m a ry

Kyne So lutio ns will initia lly fo c us o n we b a p p lic a tio ns a nd we b d e sig n. Ma inly
c o nc e ntra ting the we b d e sig n is o n sma ll c o mp a nie s a nd sta rt-up s lo o king to
d e ve lo p a n o utsta nd ing Inte rne t p re se nc e fo r the first tim e ; this a lso inc lud e s tho se
c o mp a nie s tha t ha d a p re vio us d e ve lo p me nt a nd ne e d we b site re d e sig n. O ur
se rvic e s will b e ma rke te d to sma ll b usine ss o wne rs, with the a im o f he lp ing the m to
ha ve a la sting im p re ssio n o f the ir c o mp a ny o ve r the Inte rne t. The d e ve lo p me nts
must b e a d a p ta b le to tre nd s a s we ll a s c ha ng e s in the ma rke t, a nd a lwa ys
a c c o rd ing to the c lie nt’ s re q uire m e nts o n ha nd . Ba se d o n the fre q ue nc y, vo lum e
a nd re g ula rity a we b -ma inte na nc e se rvic e c a n b e b uilt a c c o rd ing to ne e d s a nd
b ud g e t.

The im a g e p ro je c te d o f o ur p ro d uc ts a nd se rvic e s must b e se rio us, e ffic ie nt,

o b je c tive - o rie nte d , e le g a nt a nd trusta b le . Initia lly we p la n to ta rg e t o n c lie nts who
ne e d a n o nline p re se nc e ha ving a s o ur g o a l to p ro vid e a full ra ng e o f se rvic e s tha t
o ur c usto me rs und e rsta nd a nd b e ne fit fro m . Fo r e xa mp le we c a n me ntio n d yna mic
c o nte nt, we b site fe a ture s a nd d a ta b a se d rive n we b site s.

6.1 Ma rke t re se a rc h
The m a rke t re se a rc h is sta rts b y und e rsta nd ing the p o te ntia l use rs whe re o ur
p ro d uc ts c a n so ld . The first se g me nt is to o b ta ining the num b e r o f e xisting
c o mp a nie s in Jö nkö p ing a re a fo r d e fining the size o f the ma rke t. It is a lso imp o rta nt
to c o nsid e r the o rg a niza tio ns in the unive rsitie s a nd se lf-e mp lo ye d ind ivid ua ls who
o ur se rvic e s a re b e ne fic ia l fo r the m . Afte r a na lyzing the size o n the ma rke t, p o te ntia l
c usto me rs a re id e ntifie d a nd a lso ho w the ma rke ting mix a p p lie s to Kyne So lutio ns.
Pa g e | 5
6.2 Size o f the m a rke t
o C o mp a nie s in the a re a o f Jö nkö p ing Swe d e n
ƒ To ta l Ma rke t 9 384 c o mp a nie s in the a re a
o Se lf- Emp lo ye d Ind ivid ua ls
ƒ Ap p ro xim a te ly 5 800 ind ivid ua ls. (SC B:s 2004)
o Eme rg ing C o mp a nie s.
ƒ 400 e me rg ing c o mp a nie s in the ye a r 2007.

Ac c o rd ing to a p e rso na l inte rvie w with Jo na s Iva rsso n, the Sc ie nc e Pa rk in Jö nkö p ing
is re sp o nsib le fo r the 10% o f the sta rtup s in the a re a (40 sta rtup s).

Pe rc e nta g e Num b e r
Po p ula tio n Swe d e n 100.00% 9,107,795.00
To ta l w o rking p e o p le 48.97% 4,460,000.00
Se lf e mp lo ye d 9.82% 437,972.00
To ta l 4,897,972.00

Po p ula tio n Swe d e n 100.00% 9,107,795.00

Inte rne t Use rs 76.65% 6,981,200.00

Po p ula tio n Jö nko p ing A re a 100.00% 122,194.00

To ta l w o rking p e o p le 48.97% 59,838.40
Se lf e mp lo ye d 9.82% 5,876.13
To ta l 65,714.53

Ne w Co m p a nie s Esta b lishe d

Jö nkö p ing 400.00
Ta b le 6- 1 Ma rke t Size

6.2.1 Ma rke t Se g m e nta tio n

The ma rke t is d ivid e d ma inly into thre e se g me nts:

1. Sta rt- Up: The first se g m e nt c o nsists fo rm the sta rtup c o m p a nie s tha t e m e rg e
e ve ry ye a r. O n 2007 the c o mp a nie s tha t e me rg e in the Jö nkö p ing a re a wa s
400 firms. This se g me nt will ma ke the 50% o f o ur ta rg e t ma rke t2 .

2. Se lf- Em plo ye d: The se c o nd se g me nt is the se lf e mp lo ye d tha t live in the

re g io n. This e ntity is fo rm e d b y a p p ro xim a te ly 5,876 ind ivid ua ls a nd will
c o nfo rm o ur 10% o f o ur ta rg e t ma rke t.

3. Esta b lishe d C o m pa nie s: The third se g me nt c o nta ins the c o mp a nie s tha t a re
e sta b lishe d in the a re a . 8,184 Mic ro c o m p a nie s a nd 1,650 sm a ll c o m p a nie s
b ring ing a to ta l o f 9,834 c o mp a nie s in Jö nkö p ing , Swe d e n. This will c o nfo rm
the 40% o f o ur ta rg e t ma rke t.

2 Ne w c o m p a nie s Esta b lishe d (Sta tistiska c e ntra lb yrå n, SC B Nysta rta d e fö re ta g fjä rd e kva rta le t 2007)

http :/ / www.itp s.se / Arc hive / Do c ume nts/ Swe d ish/ Pub lika tio ne r/ Ra p p o rte r/ Sta tistik/ S2008/ nysta rta d e %20f%F6re ta g %2
0kva rta l%204.p d f

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6.3 Ma rke t Entry Ba rrie rs
The b a rrie rs fa c e d to whe n e nte ring the ma rke t a re :
a ) C o nsume r a c c e p ta nc e a nd b ra nd re c o g nitio n.
b ) Pric e a nd re p uta tio n ra tio .
c ) Hig h c o nsump tio n o f time in the d e ve lo p me nts.
d ) Sa le s fo rc e .

6.3.1 O ve rc o m ing the Ba rrie rs

• C o nsume r a c c e p ta nc e a nd b ra nd re c o g nitio n.
o Pro je c t a se lf-stro ng ima g e a nd c le a r info rma tio n o f o ur se rvic e s

•
a nd sa mp le p o rtfo lio .
Pric e a nd re puta tio n ra tio .
o Ensure q ua lity in o ur d e ve lo p me nts a nd b e d rive n b y re p uta tio n.

•
o Pro je c tio n o f e sta b lishing a nd limite d c o mp a ny.
Hig h c o nsum ptio n o f tim e in the d e ve lo pm e nts.

• Jö nkö p ing Te c hnic a l Sc ho o l o ffe rs a p ro g ra m c lo se ly re la te d to

o Hiring stud e nts fo r d e ve lo p ing mo d ule s o f p ro je c ts.

•
o ur d e ve lo p me nts.
Inc lud e p ro je c ts to the ir c o urse s will inc re a se the le ve l o f
und e rsta nd ing a nd a p p lic a tio n to a re a l life situa tio n.
o Id e ntify p a tte rns (d e ve lo p me nt a nd imp le me nta tio n) whe n
ma na g ing the we b d e ve lo p me nt a nd d e sig n to re d uc e o ur c o sts

•
a nd b e mo re p ro fita b le .
Sa le s fo rc e .
o O b ta ining a sa le s wo rkfo rc e tha t wo rk o n c o mmissio n b a sis, a s a
re q uire me nt is the usa g e o f Swe d ish a nd Eng lish la ng ua g e a nd
e xc e lle nt ne g o tia tio n skills.

6.4 Po te ntia l C o m pe titio ns

6.4.1 C o m pe titio n
The numb e r o f c o m p e tito rs in te c hnic a l d e ve lo p me nts o ffe ring se rvic e s simila r a s
Kyne So lutio ns is e xte nsive a nd c a n c o me fro m a numb e r o f inte rna tio na l c o mp a nie s
a s we ll a s sma ll lo c a l c o mp e tito rs. A sa m p le o f the c o mp e tito rs in the a re a wa s
ta ke n a nd the se rvic e s we re a na lyze d . To sta nd a rd ize the sa mp le we c o mp a re d
fo ur o f o ur ne a re st c o mp e tito rs a nd c o mp a re d the m to the se rvic e s we a re o ffe ring .
The c o mp a riso n se rve d us to o b se rve the b usine ss p ra c tic e s a nd te nd e nc ie s o f the
ma rke t. Eve n whe n o ur c o mp e tito rs ha ve the p o ssib ility o f o ffe ring simila r se rvic e s,
Kyne So lutio ns c o mp e te d ire c tly b y ha ving hig h q ua lity a nd und e rsta nd ing the c lie nt
re q uire me nts. It is a lso imp o rta nt to me ntio n tha t a hug e p a rt o f the ma rke t is
una tte nd e d a nd in e xp a nsio n.

Pa g e | 7
6.4.2 Lo c a l c o m pe tito rs’ se rvic e s:
C o mp a ny Na me We b site We b Ap p lic a tio ns C o nsulta nc y
Blue ra ng e Te c hno lo g ie s AB x x x
Litium x x x
XXL Re kla m & Ko mmunika tio n AB x
Re a c to r G ra p hic s x

Ta b le 6- 2 Ma jo r C o m pe tito rs

The fo llo wing ta b le (Ta b le 6- 3 Lo c a l C o m pe tito r Ana lysis) is a c o mp a riso n b e twe e n simila rity
a nd d iffe re nc e s with o ur d ire c t c o mp e tito rs, the a re a s c o mp a re d a re Pro d uc t, Pric e ,
Q ua lity, Exp e rtise , Ap p e a ra nc e , C o mp a ny re p uta tio n a nd Pro d uc t in the we b site
d e ve lo p me nt a re a . In the e nd a to ta l sc o re is p re se nte d . The d a ta c o lle c tio n wa s
c a rrie d o ut b y the fo und e rs o f Kyne So lutio ns, a nd re p re se nts a c o mp a riso n o f
info rma tio n fro m o ur lo c a l c o mp e tito r’ s we b site ma tc hing a simila r fo rm o ur p o rtfo lio .
The p o ssib le ra ng e o f va lue s fo r e a c h o f the c a te g o rie s is fro m 0 to 10 b e ing 0 b a d
a nd 10 e xc e lle nt. Furthe rmo re , the im p o rta nc e o f e a c h c a te g o ry is re p re se nte d b y a
p e rc e nta g e ; this p e rc e nta g e sho ws the im p o rta nc e o f the c ha ra c te ristic tha t is
b e ing e va lua te d fo r the c usto m e r.

Na m e Pro d uc t # Sum Pric e # Sum

Blue ra ng e Te c hno lo g ie s AB 10 20% 2.00 2 25% 0.50

Litium 10 20% 2.00 3 25% 0.75
XXL Re kla m & Ko m m unika tio n AB 8 20% 1.60 4 25% 1.00
Ad v a nc e d IT De sig n And So lutio ns 8 20% 1.60 2 25% 0.50
Kyne So lutio ns 9 20% 1.80 9 25% 2.25

Na m e Q ua lity # Sum Exp e rtise # Sum

Blue ra ng e Te c hno lo g ie s AB 8 15% 1.20 8 10% 0.80

Litium 9 15% 1.35 8 10% 0.80
XXL Re kla m & Ko m m unika tio n AB 7 15% 1.05 5 10% 0.50
Ad v a nc e d IT De sig n And So lutio ns 6 15% 0.90 7 10% 0.70
Kyne So lutio ns 9 15% 1.35 9 10% 0.90

Pa g e | 8
 Na m e A p p e a ra nc e # Sum C . Re p ut. # Sum

Blue ra ng e Te c hno lo g ie s AB 8 20% 1.60 8 10% 0.80

Litium 8 20% 1.60 8 10% 0.80
XXL Re kla m & Ko m m unika tio n AB 7 20% 1.40 7 10% 0.70
Ad v a nc e d IT De sig n And So lutio ns 7 20% 1.40 7 10% 0.70
Kyne So lutio ns 9 20% 1.80 5 10% 0.50

Na m e C . Re p ut. # Sum To ta l

Blue ra ng e Te c hno lo g ie s AB 8 10% 0.80 6.90

Litium 8 10% 0.80 7.3
XXL Re kla m & Ko m m unika tio n AB 7 10% 0.70 6.25
Ad v a nc e d IT De sig n And So lutio ns 7 10% 0.70 5.8
Kyne So lutio ns 5 10% 0.50 8.60

Ta b le 6- 3 Lo c a l C o m pe tito r Ana lysis

O ve ra ll, the re sults sho w tha t the ra nking o f o ur p ro d uc ts wa s b e tte r tha n the o ne
the c o mp e tito rs p ro vid e d . It is a lso to o ur a d va nta g e tha t we c a n a d a p t b e tte r to
o ur c lie nt ne e d s a nd o ur c lie nts c a n find in Kyne hig h-e nd d e ve lo p me nt so lutio ns fo r
a ffo rd a b le p ric e s.

6.4.3 Nic he
The nic he tha t is id e ntifie d fo r the p ro d uc tio n o f a ffo rd a b le we b so lutio ns is the sta rt-
up s firms, c o mp a nie s tha t a re e me rg ing , a nd se lf-e mp lo ye d p e rso ns sp e c ia lly
lo c a te d in the Jö nkö p ing a re a . Kyne o ffe rs a p ro p rie ta ry p ro c e ss whe n d e ve lo p ing
so lutio ns. It sta rts with the und e rsta nd ing o f o ur c lie nt ne e d a nd tra nsla ting it into a
d e ve lo p me nt, sa tisfying the ir ne e d .

6.4.4 Distrib utio n C ha nne ls

• We b d e ve lo p me nts will b e usua lly up lo a d e d into se rve rs a nd o ur c lie nts
will re c e ive a ha rd c o p y (d isk) o f the ir p ro d uc t a s we ll a s we ll a s the

• Afte r the c o nsulta nc y se rvic e s a re finishe d a ll d o c ume nta tio n will b e ha nd

d o c ume nta tio n.

in p rinte d a nd o n e le c tro nic fo rm .

6.5 Ta rg e t Ma rke t Se g m e nt Stra te g y

Kyne So lutio ns will fo c us the ma jo rity o f sa le s a nd ma rke ting e ffo rts to wa rd a ttra c ting
sma ll b usine sse s with the we b site d e sig n. The re a so n is to e xp la in a nd se ll o ur
c usto me rs the im p o rta nc e o f ha ving a we b p re se nc e a nd ho w this will inc re a se the
va lue o f the ir c o m p a ny. Alte rna tive ly the a d va nc e d we b site s a re to b e fo c use d o n
the a lre a d y e sta b lishe d c o m p a nie s tha t ne e d a p p lic a tio ns b a se d o n the inte rne t to
e nha nc e the ir p ro d uc tivity.

6.6 Re a c hing the Ta rg e t m a rke t

The first ste p to re a c h the ma rke t is b y p ro mo ting the p ro d uc ts a nd se rvic e s o n the
c o mp a ny we b site , with a n a p p e a ling lo o k tha t b e c o me s a ttra c tive to the visito rs

Pa g e | 9
a nd m a inta in e nc o ura g e the m to se le c t the p ro d uc ts o f the ir inte re st. The m a in
o b je c tive whe n c re a ting the site must b e the p ro d uc tio n o f re sults, whic h a re ,
c usto me r sa tisfa c tio n, tra ffic , a nd sa le s. Fo r using the we b site a s the ma in ma rke ting
to o l a nd must fo llo w the fo llo wing sp e c ific a tio ns:

• Se a rc h Eng ine O p timize d will b ring a g o o d ra nking a nd ma ke the

•
c o m p a ny visib le to the wo rld .

•
Attra c tio n o f the ta rg e te d a ud ie nc e .

•
Ea sy na vig a tio n fo c use d o n the visito rs ne e d .
Ma inta in the visito rs o n the site until the y p ro d uc e o ur e xp e c te d re sult
a s b uying o r c o nta c ting us.

Be sid e s the we b site ma rke ting is a lso im p o rta nt to ha ve vira l ma rke ting , (wo rd o f
mo uth) tha t c a n b e susta ine d b y e xa m p le s o n the c o mp a ny we b site . It is a lso
fund a m e nta l tha t the d o m a in na m e is a wo rd e a sy to re m e m b e r so the wo rd o f
mo uth c a n tra nsla te into we b site tra ffic a nd into a sa le . Sup p o rting the vira l
c a mp a ig n a re the b usine ss c a rd s with the c o mp a ny info rma tio n inc lud ing the
inte rne t a d d re ss (URL).

It is im p o rta nt to ta ke into c o nsid e ra tio ns tha t the e ntre p re ne uria l a c tivity m a inly
ha p p e ns in the b usine ss inc ub a to rs a ro und Swe d e n a nd is a n e xc e lle nt p la c e to
ma rke t o ur se rvic e s.

As a n a lte rna tive to the we b site , p e rso na lize d c o m m unic a tio n a nd o ffe ring o ur
se rvic e s a nd d ire c t ma rke ting will b e p re se nt. Dire c t ma rke ting will no t b e p re se nt in
the sta rt-up p ha se , sinc e it is a n e xp e nsive o p tio n, p rinting ma te ria ls will p ro d uc e
mo re visits to o ur we b site a nd tra nsla te into se lls.

Ano the r typ e o f m a rke ting m e tho d tha t is und e r c o nsid e ra tio n is o ur d e ve lo p m e nt
sig na ture a t the e nd o f o ur d e ve lo p me nts linke d to o ur site . Ho we ve r, the usa g e o f
this p ro c e d ure must b e a c c e p te d b y o ur c lie nts. The m e tho d wo uld he lp the m g e t a
b e tte r ra nking o n the ir site s, sinc e so me o f the se a rc h e ng ine s’ ra nking syste ms a re
b a se d o n links.

6.7 Ma rke ting Mix Mo de l (4p´ s)

6.7.1 Pric e
Kyne So lutio ns a s a c o nsulta nc y firm fo und tha t se tting p ric e b y ho urs is a wa y to
e sta b lish a b a la nc e b e twe e n the va lue a nd the d e live re d p ro je c t. O ur ho ur ra te is
b a se d o n 590 SEK (Swe d ish kro no r) p e r ho ur. This p ric e a p p lie s fo r a ll o ur se rvic e s a s
we b site s, c o nsulta nc y re p o rts a nd a d va nc e d d e ve lo p me nts. As a n e xa mp le a
we b site fro m fo ur to nine p a g e s is a ro und 7 000 SEK a nd 12 000 SEK. This p ric e ha s a
va ria tio n d e p e nd ing o n the c o mp le xity o f the d e sig n a nd the inte ra c tio n within the
e le me nts insid e the d e ve lo p me nt.

It is im p o rta nt to re m a rk tha t we ha ve id e ntifie d d iffe re nt typ e s o f c usto m e rs: The

o ne s tha t c o me a lre a d y with a sp e c ific re q ue st o f wha t the y wa nt a nd with simp le
c o lla b o ra tio ns a nd sug g e stio ns the d e ve lo p m e nt e vo lve s. C o nve rse ly so m e o f o ur
p re vio us c usto me rs c a me to us with o nly a b rie fly id e a o f wha t the y wa nt fo r a
we b site a nd the y d id no t kno w wha t the y wa nt to c o m m unic a te o r whic h

Pa g e | 10
info rm a tio n ha s to b e the re . It ha s to b e und e rsta nd a b le tha t the situa tio n p ro d uc e s
a d iffe re nc e in the p ric ing o f a simila r e nd p ro d uc t.

6.7.2 Pro m o tio n

O ne o f o ur o ffe ring to o ur c lie nts is the inc re a se the ir b usine ss b y ha ving the ir
p re se nc e o ve r the inte rne t. In o rd e r to c o mmunic a te e ffe c tive ly o ur g o a l, o ur ma in
stra te g y is to ha ve a n e xc e lle nt we b site , ra nke d e ffic ie ntly within the se a rc h e ng ine s.
The fa c t tha t o ur c usto me rs find o ur we b site we will le ve ra g e p a rt o f the ma rke ting
o f o ur se rvic e s to the inte rne t. Be sid e o ur site , o ur p ro m o tio n stra te g y will b e a id e d b y
e ma il ma rke ting , a nd p rinting ma te ria ls, it is fund a me nta l to ha ve a stro ng ne two rk
o f c lie nts a nd e ve ry d e ve lo p me nt will ha ve o ur sig na ture e nsuring q ua lity

6.7.3 Pla c e
Ma inly the p la c e whe re o ur p ro d uc ts a nd se rvic e s will b e o ffe re d a re o ve r the
Inte rne t, a id e d b y te le c o m m unic a tio n te c hno lo g y we c a n o ffe r o ur p re se nta tio ns
a nd me e ting s in virtua l fo rm a t o ur c lie nt o ffic e s a ll o ve r the wo rld . Pre se ntly the
p ro d uc t d e ve lo p me nt a nd c o rp o ra te o ffic e s a re lo c a te d in Jö nkö p ing , Swe d e n
insid e the Sc ie nc e Pa rk, Jö nkö p ing G jute rig a ta n 9, 553 18.

6.7.4 Pro duc t

O ur d e ve lo p m e nt te a m ha ve a n e xte nsive kno wle d g e in C # , C / C ++, Mic ro so ft .NET,
ASP, JSP, PHP, Visua l-Ba sic , Ja va , Dre a m we a ve r, Fla sh, Illustra to r, Pho to sho p ,
Da ta b a se s in SQ L a nd MySQ L whic h tra nsla te into m a inly thre e p ro d uc ts.

• We b site s. - The o utc o m e o f this p ro d uc t is to g e ne ra te a n o utsta nd ing

p re se nc e o n the Inte rne t. The fo c us o f this p ro d uc t is o ffe ring a nd p ro mo ting
p ro d uc t/ se rvic e s o ve r the Inte rne t. This a lso inc lud e s we b site re d e sig n,
up g ra d e s a nd we b site ma inte na nc e .
• We b Ba se d Applic a tio ns. - Inte rne t a s a n inte ra c tio n a nd c o mmunic a tio n to o l
g ive s the p o ssib ility to g e ne ra te a p p lic a tio ns tha t p ro d uc e b usine ss
o p p o rtunitie s. This p ro d uc t/ se rvic e will a ssist o ur c usto me rs in re a c hing the ir
b usine ss o b je c tive s a nd he lp the m to c o ntro l the ir b usine ss o p e ra tio ns. As
e xa m p le s o f this so lutio n we c a n m e ntio n d a ta b a se c o nstruc tio n,
a ud io / vid e o fe e d , e -e d uc a tio n p la tfo rms a nd intra ne t d e ve lo p me nt
b e twe e n o the rs.
• C o nsulta nc y Tim e . - Due to o ur b a c kg ro und a nd kno wle d g e we c a n o ffe r
so lutio ns within a lmo st a ny a re a o f the Info rm a tio n Te c hno lo g y a nd
C o mmunic a tio n fie ld . This se rvic e e xte nd s fro m a simp le c o nfig ura tio n to the
c o mp le te ma na g e m e nt o f a p ro je c t.

7 Fina nc ia l Pla n
This se g me nt o f the b usine ss p la n g ive s the fina nc ia l info rma tio n fo r e sta b lishing the
firm a nd will a lso p ro vid e the fo re c a st fo r the fo llo wing thre e ye a rs o f o p e ra tio n. The
fina nc ia l a ssump tio ns a re b a se d o n a ste a d y e c o no m y a nd sta nd a rd numb e rs fo r a
b usine ss. All numb e rs a re in Swe d ish Kro no r (SEK). This se c tio n will b e d ivid e d into the
fo llo wing a re a s:

Pa g e | 11
 • Sta rt-up Summa ry
• Sa le s Fo re c a st
• Sta rt-up Fo und ing
• Pro fit a nd Lo ss
• Ne t Pro fit
• G ro ss Ma rg in
• C a sh Flo w
• Ba la nc e She e t

7.1 Sta rt- up Sum m a ry

The c o mp a ny fo und e rs, Jo sé Ta la ma nte s a nd Hé c to r C á rd e na s, will ha nd le d a y-to -

d a y o p e ra tio ns o f the b usine ss a nd will wo rk c o lla b o ra tive ly to e nsure tha t this
b usine ss ve nture is a suc c e ss. The fo llo wing ta b le sho ws the sta rt-up c o sts fo r sta rting
up Kyne So lutio ns. So me o f the c o sts p re se nte d in the sta rtup re q uire me nts a re
re c urre nt c o sts tha t will sho w the in the c a sh flo w sta te m e nts.

Pa g e | 12
7.1.1 Sta rt- up Re q uire m e nts
The fo llo wing ta b le will re p re se nt the e xp e nse s tha t the firm ne e d s in o rd e r to b e in
o p e ra tio n. The to ta l sta rt up e xp e nse s is 28,455 SEK. The lo ng te rm a sse ts re p re se nt
the te c hno lo g ic a l e q uip me nt tha t is ne e d e d fo r d e ve lo p ing the so ftwa re tha t is
39,848 SEK.

Sta rt-up Exp e nse s

O ffic e Re nt (mo nthly) SEK 5,000.00
Skyp e Se rv ic e s ( M o nthly Wo rld C a lls w ithin La nd line s) SEK 115.00
Inte rne t Se rv ic e s (M o nthly Te le no r Sw e d e n) SEK 270.00
M a rke ting M a te ria l SEK 2,000.00
O ffic e Sup p lie s SEK 500.00
Tra d e ma rk re g istra tio n SEK 1,500.00
M ic ro so ft Visua l Stud io Pro 2008 (.ne t fra me w o rk) SEK 4,245.00
Ad o b e C re a tiv e Suite 4 We b SEK 11,625.00
M ic ro so ft O ffic e Sma ll Busine ss SEK 2,500.00
C e llp ho ne a nd Line 1 (mo nthly) SEK 350.00
C e llp ho ne a nd Line 2 (mo nthly) SEK 350.00
To ta l Sta rt- up Expe nse s SEK 28,455.00

Sta rt-up Asse ts

C a sh Re q uire d SEK 5,000.00
Sta rt-up Inv e nto ry SEK -
O the r C urre nt Asse ts SEK 7,000.00
Lo ng -te rm Asse ts SEK 39,848.00
To ta l Asse ts SEK 51,848.00

To ta l Re q uire me nts SEK 80,303.00

Ta b le 7- 1 Sta rtup Re q uire m e nts

7.1.2 Funding the sta rtup Re q uire m e nts

The fina nc ia l m e tho d fo r o b ta ining the sta rtup re q uire m e nts is b o o tstra p p ing . Bo th o f
the o wne rs will c o ve r the e q uip m e nt a nd e xp e nse s with b y a d d ing a n inve stme nt
40,154 Swe d ish kro no r (SEK) e a c h.

Start‐up Funding
Start‐up Expenses to Fund SEK 28,455.00
Start‐up Assets to Fund SEK 51,848.00
Total Funding Required SEK 80,303.00

Ta b le 7- 2 Funding Re q uire m e nts

Pa g e | 13
 Assets
Non‐cash Assets from Start‐up SEK 46,848.00
Cash Requirements from Start‐up SEK 5,000.00
Additional Cash Raised SEK 1,697.00
Cash Balance on Starting Date SEK 6,697.00
Total Assets SEK 53,545.00

Liabilities SEK ‐

Capital
Planned Investment
José Talamantes SEK 40,154.00
Hector Cárdenas SEK 40,154.00
Additional Investment Requirement SEK ‐
Total Planned Investment SEK 80,308.00

Loss at Start‐up (Start‐up Expenses) SEK (28,455.00)

Total Capital SEK 53,545.00

Total Capital and Liabilities SEK 53,545.00

Total Funding SEK 80,308.00

Ta b le 7- 3 Asse ts a nd C a pita l fo r the Sta rtup Funding

The fo llo wing g ra p h sho ws ho w the inve stme nt will fund the a sse ts a nd the e xp e nse s
fo r the sta rtup p ha se o f the c o mp a ny.

SEK 90,000.00
SEK 80,000.00
SEK 70,000.00
SEK 60,000.00 Inve stme nt
SEK 50,000.00 Exp e nse s
SEK 40,000.00
Asse ts
SEK 30,000.00
SEK 20,000.00
SEK 10,000.00
SEK -
1 2

Fig ure 7- 1 Inve stm e nt= Asse ts + Expe nse s

Pa g e | 14
7.2 Sa le s Fo re c a st (2009- 2011)
The p ro fita b le mo d e l o f the b usine ss is b illing a n a ve ra g e o f 65 ho urs p e r mo nth a nd
d e ve lo p ing 5 we b site s. In the fo llo wing ye a rs the a mo unt o f ho urs b ille d turns into 80
ho urs with 6 we b site s d e ve lo p e d . It is imp o rta nt to m e ntio n tha t the a m o unt o f
wo rking ho urs in a mo nth o n a five -d a y we e k a nd e ig ht ho urs p e r d a y is a ve ra g ing
175 ho urs.

Unit Sa le s 2009 2010 2011

C o nsulta nc y Ho urs 770 960 1,110
We b site De v e lo p me nt (Estima te d Pric e ) 52 80 108
To ta l Unit Sa le s 822 1,040 1,218

Unit Pric e s 2009 2010 2011

C o nsulta nc y Ho urs SEK 590 SEK 590 SEK 750
We b site De v e lo p me nt (Estima te d Pric e ) SEK 8,000 SEK 8,000 SEK 8,000

Sa le s 2009 2010 2011

C o nsulta nc y Ho urs SEK 489,700 SEK 566,400 SEK 832,500
We b site De v e lo p me nt (Estima te d Pric e ) SEK 416,000 SEK 640,000 SEK 864,000
To ta l Sa le s SEK 905,700 SEK 1,206,400 SEK 1,696,500

Unit C o sts 2009 2010 2011

C o nsulta nc y Ho urs 20% SEK 118 SEK 118 SEK 150
We b site De v e lo p me nt (Estima te d Pric 20% SEK 1,600 SEK 1,600 SEK 1,600

C o st o f Sa le s 2009 2010 2011

C o nsulta nc y Ho urs SEK 90,860 SEK 113,280 SEK 130,980
We b site De v e lo p me nt (Estima te d Pric e ) SEK 83,200 SEK 128,000 SEK 172,800
Sub to ta l Dire c t C o st o f Sa le s SEK 174,060 SEK 241,280 SEK 303,780

Turno v e r SEK 731,640 SEK 965,120 SEK 1,392,720

Ta b le 7- 4 Sa le s Fo re c a st (2009- 2011)

Pa g e | 15
Ac c o rd ing to the fo re c a st the turno ve r g e ne ra te d b y Kyne is e no ug h fo r p ro d uc ing
furthe r inve stme nts. It a lso sho ws a ra p id g ro w . To c o mp a re the so urc e o f the to ta l
sa le fig ure s, the ne xt g ra p h c o mp a re s the c o nsulta nc y ho urs a nd the we b site
d e ve lo p me nts.

SEK 1,800,000
SEK 1,600,000
SEK 1,400,000
SEK 1,200,000 C o nsulta nc y Ho urs

SEK 1,000,000
We b site De ve lo p me nt
SEK 800,000
(Estima te d Pric e )
SEK 600,000
To ta l Sa le s
SEK 400,000
SEK 200,000
SEK -

2009 2010 2011

G ra ph 7- 1 Sa le s Fo re c a st 2009- 2011

Pa g e | 16
 8 Appe ndix A

8.1 C urric ulum Vita e Jo sé Alfo nso Ta la m a nte s Pa vó n

Pro fe ssio na l O b je c tive
As a n e ntre pre ne ur in the fie ld o f Info rm a tio n Te c hno lo g y it is m y pe rso na l inte re st to pursue a c o nsulting
c a re e r in whic h I c a n utilize m y g a ine d kno wle dg e in a ra ng e o f c ha lle ng ing pro je c ts tha t ne e d hig h
pe rfo rm a nc e so lutio ns a nd re q uire c o nsta nt inno va tio n. Pe rso na l stre ng ths tha t a llo w m e to suc c e ssfully
e xe c ute g ive n ta sks inc lude c o m pe te nt te a m le a d e rship, stro ng c o m m unic a tio n skills, the a b ility to
m a na g e se ve ra l pro je c ts sim ulta ne o usly a nd the c o m pe te nc y to unde rsta nd a nd tra nsla te b usine ss
re q uire m e nts into IT spe c ific a tio ns.
Educ a tio n
M.Sc . in Entre pre ne uria l Ma na g e m e nt 2007.08 to 2008.07
Jö nkö ping Inte rna tio na l Busine ss Sc ho o l (JIBS) - Jö nkö p ing , Swe d e n.
Sp e c ia liza tio n in e ntre p re ne urship , b usine ss d e ve lo p m e nt, c o rp o ra te g o ve rna nc e , stra te g ic re ne wa l
a nd o rg a niza tio na l c ha ng e
M.Sc . in C o m pute r Eng ine e ring spe c ia lizing in Info rm a tio n Te c hno lo g y 2005.08 to 2005.03
Jö nkö ping Unive rsity, Sc ho o l o f Eng ine e ring (JTH) - Jö nkö p ing , Swe d e n.
Sp e c ia liza tio n in Info rma tio n Te c hno lo g y fo c using o n info rm a tio n & e nte rp rise m o d e ling with
d istrib ute d a p p lic a tio ns d e ve lo p m e nt, so ftwa re q ua lity & p ro je c t m a na g e m e nt, so ftwa re e ng ine e ring
a nd the e nha nc e d usa g e o f kno wle d g e in d a ta b a se syste m s
B.Sc . in C o m pute r Syste m s Eng ine e ring 1999.08 to 2004.12
Instituto Te c no ló g ic o y de Estudio s Supe rio re s de Mo nte rre y (ITESM) - Me xic o C ity, Me xic o .
Sp e c ia liza tio n in info rma tio n syste ms d e sig n, so ftwa re a rc hite c ture , ne two rking a nd info rm a tio n
se c urity, c o mp ute r visua l d e sig n a nd multim e d ia
Pro je c t in Te le visio n Pro duc tio n / Visual C o m m unic atio n / Radio Pro duc tio n 2007.03 to 2007.07
Jö nkö ping Unive rsity, Sc ho o l o f Educ a tio n a nd C o m m unic a tio n - Jö nkö p ing , Swe d e n.
Invo lve m e nt in te le visio n p ro d uc tio n, live TV & ra d io b ro a d c a sts a nd visua l c o mm unic a tio n in the o ry
a nd p ra c tic e
C e rtific ate in Wire le ss LAN Te c hno lo g y 2003.07 to 2003.08
So uth Alb e rta Institute o f Te c hno lo g y (SAIT) - C a lg a ry, C a na d a .
Ne two rking c e rtific a tio n: Q ua lific a tio n to d e sig n, insta ll, m a inta in a nd o p e ra te a wire le ss LAN so lutio ns
with the a b ility o f und e rsta nd ra d io te c hno lo g ie s a sso c ia te d with the sta nd a rd s, the to p o lo g ie s a nd
a p p lic a tio ns a s we ll a s d e te rmine the b e st o p tio ns fo r d e sig ning a n a p p ro p ria te WLAN e nviro nm e nt

C e rtific ate in Fib e r Optic Ne two rking The o ry & De sig n 2003.07 to 2003.08
So uth Alb e rta Institute o f Te c hno lo g y (SAIT) - C a lg a ry, C a na d a .
Fib e r O p tic c e rtific a tio n: Und e rsta nd ing o f fib e r o p tic c o m p o ne nts, fib e r o p tic the o ry, a nd fib e r o p tic s
c o m m o n te rmino lo g y. The c e rtific a tio n e xe m p lifie s the b e st p ra c tic e te c hniq ue s whe n d e sig ning a
ne two rking syste m tha t c o nsists o f fib e r o p tic s te c hno lo g y.

C e rtific ate in C o m pute r Pro g ram m ing 2000.07 to 2003.08

C a rne g ie Institute o f Te c hno lo g y (C a rne g ie TEC H) - Pe nnsylva nia , Unite d Sta te s o f Ame ric a .
O nline c e rtific a tio n p ro g ra m o ffe re d b y the C a rne g ie Me llo n Unive rsity in c o lla b o ra tio n with the
Instituto Te c no ló g ic o y d e Estud io s Sup e rio re s d e Mo te rre y : e na b le s to p e rfo rm o b je c t -o rie nte d
d e sig n a nd p ro g ra mming , use r-c e nte re d inte rfa c e d e sig n, we b a p p lic a tio ns d e sig n, d a ta b a se -d rive n
we b syste m s a nd a d va nc e d p ro g ra m ming te c hniq ue s
C o m puting Skills
O pe ra tive Syste m s Ma c O S X, Wind o ws (XP-Vista ), Linux, UNIX.
Pro duc tivity Suite s MS O ffic e (Exc e l, Wo rd , Po we rPo int, O utlo o k), MS Pro je c t, MS Visio a nd Lo tus No te s.
Da ta b a se s SQ L Se rve r, MySQ L, O ra c le
De sig n So ftwa re Ad o b e C S3 (InDe sig n, Pho to sho p , Illustra to r, Fla sh, Dre a m we a ve r, Pre mie r) Fina l C ut.
Pro g ra m m ing ASP, JSP, PHP, Visua l Ba sic , HTML, Ja va , C # , Mic ro so ft .Ne t Fra me wo rk.
La ng ua g e Pro fic ie nc y
Spa nish Na tive sp e a ke r
Eng lish Flue nt
Pa g e | 1
 Swe dish Ba sic

Pro fe ssio na l Expe rie nc e

C EO C o - Fo unde r 2008.01 - To da y
Kyne So lutio ns - Jö nkö p ing , Swe d e n
Fo unde r o f a full se rvic e so ftwa re de ve lo pm e nt firm with fo c us o n ta ilo re d syste m s a nd we b
a pplic a tio ns. Sta rt up a c tivitie s fo r the e sta b lishm e nt o f the firm in the Swe d ish ma rke t whic h inc lud e
lo ng -te rm b usine ss p la nning , a na lysis o f the m a rke t a nd the c o m p e titive e nviro nm e nt a s we ll a s
stre ng the ning b ra nd re c o g nitio n. O ffe ring we b site d e ve lo p m e nt se rvic e s to sta rt-up c o m p a nie s a nd
m a na g ing inte rna tio na l p ro je c ts. Ad d ing va lue b y o ffe ring virtua l p re se nc e a nd te c hnic a l sup p o rt via
te le c o nfe re nc ing p ra c tic e s.
Pro je c t Ma na g e r 2005.01 to 2005.07
G e ne ra l Mo to rs Mé xic o – Me xic o C ity, Me xic o
Re spo nsib le fo r c o o rdina ting a nd do c um e nting the “De a le r Ma na g e m e nt Syste m C e rtific a tio n” a t G M .
Ana lysis o f G M’ s e xisting to o ls, syste ms a nd p ro vid e rs fo r m a na g ing a uto m o tive d e a le rs in Me xic o .
C o mmunic a tio n o f the p ro je c t d e sc rip tio n, a llo c a tio n o f re so urc e s a nd d istrib utio n o f ta sks fo r the
c e rtific a tio n p ro c e ss. Sup e rvisio n o f the p ro c e d ure fo r o b ta ining the re q uire m e nts fro m G e ne ra l
Mo to rs d e a le rs. De finitio n o f me tric s a nd e va lua tio n m e tho d s fo r the De a le r Ma na g e m e nt Syste m s
(DMS) b a se d o n sp e c ifie d re q uire m e nts. Eva lua tio n a nd c e rtific a tio n o f suita b le DMSs tha t a re in line
with G e ne ra l Mo to rs’ b usine ss p ra c tic e s. Do c um e nta tio n o f the c o m p le te d DMS Pro je c t a c c o rd ing to
G e ne ra l Mo to rs sta nd a rd s (SDP21).
Info rm a tio n Syste m s C o o rdina to r 2001.11 to 2004.12
Plá stic o s Furb i - Me xic o C ity, Me xic o

Re spo nsib le fo r info rm a tio n m a na g e m e nt, syste m a dm inistra tio n a nd e nte rprise c o m m unic a tio n.
Lo c a l a re a ne two rk (LAN) im p le m e nta tio n a nd intra ne t d e ve lo p me nt e nsuring a n e ffic ie nt usa g e o f
re so urc e s, d a ta flo w a nd info rma tio n sto ra g e . De ve lo p me nt o f so ftwa re a p p lic a tio ns fo r ma na g ing
the inve nto ry sup p lie s. Insta lla tio n, ma na g e me nt a nd sup p o rt o f ha rd wa re a nd so ftwa re o f se rve rs
a nd p e rso na l c o m p ute r te rmina ls. Im p le m e nta tio n, c usto m iza tio n a nd sup e rvisio n o f p la stic b lo wing
ma c hine ry PLC so ftwa re (URO LA). Pro vid ing so lutio ns fo r minimizing the p ro d uc tio n o f d ysfunc tio na l
p ro d uc ts (in c o lla b o ra tio n with the Q ua lity C o ntro l d e p a rtm e nt). Ensuring m a te ria l a va ila b ility a nd
inc re a sing p ro d uc tivity b y a na lyzing p a tte rns in c lie nt o rd e rs a nd tre nd s in b o ttle d e sig ns.
De ve lo p m e nt a nd p ub lic a tio n o f the c o m p a ny’ s we b p re se nc e http :/ / www.p la stic o sfurb i.c o m/
C o nsulta nt / We b site De ve lo pe r 2005.03 to 2005.08
RH C o nsulto re s - Me xic o C ity, Me xic o
Re spo nsib le fo r de ve lo ping a se rvic e o rie nte d we b site fo r m a rke ting purpo se s.
De ve lo p e d a nd d e sig ne d RH C o nsulto re s’ we b p re se nc e http :/ / www.rhc o nsulto re s.c o m .m x/
Te c hnic a l Suppo rt Assista nt 1999.06 to 2000.08
H&B So ftwa re - Me xic o C ity, Me xic o
Re spo nsib le fo r se rve r a nd pe rso na l c o m pute r m a inte na nc e , we b de ve lo pm e nt a nd te c hnic a l
suppo rt.
Imp le me nta tio n o f Lo tus No te s p la tfo rm, c usto miza tio n o f IBM (AS/ 400) a nd sa le s o f he lp -syste m
p ro d uc ts.
Pe rso na l Inte re sts
Athle tic s, Pho to g ra phy, Auto m o tive Industry, De sig n, Te le c o m m unic a tio ns, Me dia Pro duc tio n,
Applic a tio n o f vide o a nd a udio into wire le ss ne two rking te c hno lo g ie s, Educ a tio na l Tra ining , Busine ss
Ne g o tia tio ns.
Pe rso na l Info rm a tio n
C itize nship : Me xic a n Da te o f Birth: 19 Ma rc h 1980

Pa g e | 2
 8.2 C urric ulum Vita e Hé c to r C á rde na s Ma rtíne z
Pro fe ssio na l O b je c tive
C o m pute r Syste m s Eng ine e r inte re ste d o n Info rm a tio n Te c hno lo g ie s de ve lo pm e nt a nd so lutio ns fo r
c o m pa nie s b a se d o n Info rm a tio n Te c hno lo g ie s. Se a rc hing fo r c ha lle ng e s re q uiring c o nsta nt inno va tio n,
G re a t le a rning c a pa c ity, o rg a niza tio n a nd a da pta tio n in wo rkg ro ups with fa c ility to g ive pra c tic a l
so lutio ns to c o m ple x situa tio ns.

Educ a tio n
M.Sc . in C o m pute r Eng ine e ring spe c ia lizing in Info rm a tio n Te c hno lo g y 2005.08 to 2005.03
Jö nkö ping Unive rsity, Sc ho o l o f Eng ine e ring (JTH) - Jö nkö p ing , Swe d e n.
Sp e c ia liza tio n in Info rma tio n Te c hno lo g y fo c using o n info rm a tio n & e nte rp rise m o d e ling with
d istrib ute d a p p lic a tio ns d e ve lo p m e nt, so ftwa re q ua lity & p ro je c t m a na g e m e nt, so ftwa re e ng ine e ring
a nd the e nha nc e d usa g e o f kno wle d g e in d a ta b a se syste m s
B.Sc . in C o m pute r Syste m s Eng ine e ring 1999.08 to 2005.08
Instituto Te c no ló g ic o y de Estudio s Supe rio re s de Mo nte rre y (ITESM) - Me xic o C ity, Me xic o .
Sp e c ia liza tio n in info rm a tio n syste m s d e ve lo p m e nt, d a ta struc ture s, a nd p ro g ra m ming la ng ua g e s.

C o m puting Skills
O pe ra tive Syste m s Ma c O S X, Wind o ws (XP-Vista ), Linux, UNIX.
Pro duc tivity Suite s Mic ro so ft O ffic e (Exc e l, Wo rd , Po we rPo int, O utlo o k), Mic ro so ft Pro je c t, Mic ro so ft
Visio a nd Lo tus No te s.
Da ta b a se s SQ L Se rve r, MySQ L, O ra c le
Pro g ra m m ing C , C ++,C # , Ja va , ASP, JSP, PHP, Visua l Ba sic , HTML, Ja va , C # , Mic ro so ft .Ne t
Fra m e wo rk.
La ng ua g e Pro fic ie nc y
Spa nish Na tive sp e a ke r
Eng lish 80%
Fre nc h 50%
Swe dish Ba sic

Pro fe ssio na l Expe rie nc e

C TO C o - Fo unde r 2008.01 - To da y
Kyne So lutio ns - Jö nkö p ing , Swe d e n
C o - Fo unde r o f a full se rvic e so ftwa re de ve lo pm e nt firm with fo c us o n ta ilo re d syste m s a nd we b
a pplic a tio ns.
Info rm a tio n Syste m s C o o rdina to r 2001.11 to 2008.01
ARC YA S de R.L. - Me xic o C ity, Me xic o
Re spo nsib le fo r e nte rprise a pplic a tio n a nd b usine ss m o de ls de ve lo pe r.
C o nsulting in pro je c ts a ssig ne d to the c o m pa ny. Se rve r a nd pe rso na l c o m pute r m a inte na nc e a nd
te c hnic a l suppo rt.
Inte rne t Applic a tio ns De ve lo pe r 1997.02 to 2004.10

MARBEN S.A. de C .V. - Me xic o C ity, Me xic o

Re spo nsib le fo r se rve r a nd pe rso na l c o m pute r m a inte na nc e , we b de ve lo pm e nt a nd te c hnic a l suppo rt

De ve lo pm e nt o f syste m s to c o ntro l m o vie sho pping a t the sto re s. C o m m unic a tio n m a na g e r b e twe e n
MARBEN a nd VIDEO VISA a pplic a tio ns

Pe rso na l Info rm a tio n

C itize nship : Me xic a n Da te o f Birth: 1 Ja nua ry 1980

Pa g e | 3
9 Re fe re nc e s
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Inte rna tio na l Sma ll Busine ss Jo urna l , 115-130.

Be ttig nie s, J.-E. d ., & Bra nd e r, J. (2007). Fina nc ing e ntre p re ne urship : Ba nk Fina nc e
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Birkinsha w, J. (2003). The Pa ra d o x o f C o rp o ra te Entre p re ne urship . Hä m ta t frå n

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