Venture Capital and Used Book Store Business

The best solution for the used book store business is venture capital. There are many determining issues when attracting venture capital. First, there tend to be long-term and large-scale practices and business activities, and these activities should be better handled by an independent company like a used book store business. In ventures, capital investment tends to be large, so risk sharing is an important issue for analysis. Typically, venture capital is established for the support of business and its growth opportunities. Second, venture capital combines to take advantage of each other’s specialized business. For instance, other small businesses can offer the used book store business skills in selling books and experience in cooperative management systems. The opportunity is that some investors can provide physical assets, workers, and the knowledge needed to sell used books and communicate with customers. Third, venture capital can often overcome political aims to local practices in economies where penetration is a contentious process. The benefits of venture capital are two-way, though: investing organizations are also able to utilize local marketing knowledge and influence. Sometimes, especially in centrally managed business, this may involve the effective purchase of local support to ensure that obstacles to the venture will be minimal. Another advantage is that the capital and investments can come from different sources. it is possible to attract two or more local businesses and open several stores in the region

Another important factor to consider is a balance of power between partners. Therefore the business can practice quality control, product quality can be low and the investments can be unprofitable. The used book store business should take into account that complementary capabilities and economies of scale can lead to competitive power. For example, the used book store business can provide the other local company with advertising and promotion issues while this business can support the store financially. Key factors in achievement are (1) mutual trust between partners, (2) first-class capabilities to create core competencies, and (3) continuous cooperation to enhance the core competencies (Çetindamar, 2003).

The main risks are associated with partnership and relations between the partners. Group decision-making is a very common issue at ventures and is a direct transplant of standard corporate decision-making. In the case of the used book store business controlling power may sometimes depend on the percentage of shares held, but even when ownership is less than 50 percent the side has controlling power if it provides the key resources or technology. The risks of venture capital are less than the risk of continuing business through a relative. Venture capital will help the owner of the store to become financially independent and provide an independent policy. Venture capital enables companies to develop capabilities that cannot be developed by a single firm, to bring about economies of scale, to outclass competitors by developing standards, and to avoid the risks inherent in large individual investments (Çetindamar, 2003).

In sum, venture capital is the best alternative to the used book store business as it allows the growth of businesses and independence in marketing and financial procedures. These function as issues for the development of new marketing policies and new services, and the training of employees. Therefore controlling power depends on the number of resources one of the partners provides, not on majority ownership. the risk is that if a serious conflict of interests exists, this ultimate power to control is crucial for success.


Çetindamar, D. (2003). The Growth of Venture Capital: A Cross-Cultural Comparison. Praeger.

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