Entrepreneurship

Agenda Introduction The entrepreneurial process Should you become an entrepreneur Promoting creativity Idea generation, and opportunity recognition, shaping and Reshaping Business planning or how to develop a business plan Early decisions Market your business Human Resource Management Finance, protect and insure your business

Introduction Entrepreneurs and the firms they create are the engines of economic growth, wealth creation and job creation

Introduction

The entrepreneurial process Entrepreneurship is the process of running a business of one’s own. The person who owns, operates, and takes the risks of a business venture is called an entrepreneur.

The entrepreneurial process The factors that contribute to a new business’s success include adequate capital, a product or service that meets customer needs, and the owner’s management skills.

Is entrepreneurship right for you? Successful entrepreneurs tend to be: independent, self-confident, determined, goal-oriented, creative, able to act quickly. They have a need to achieve and set higher standards for themselves. They keep up to date with technology. Entrepreneurs must have good team-building skills and be able to work well with others.

Is entrepreneurship right for you? To determine whether entrepreneurship is right for you, you will need to assess your: strengths weaknesses interests abilities.

Promoting creativity Creativity is defined as: the tendency to generate or recognize ideas, or alternatives that may be useful in solving problems, communicating with others

Idea generation and opportunity recognition, shaping and Reshaping (1) Explore ideas and opportunities Ideas for new businesses can come from your hobbies and interests, passion, your past experiences. Entrepreneurs should set SMART goals, which are: specific measurable attainable realistic timely

Idea generation, and opportunity recognition, shaping and Reshaping (1) To generate Ideas: Brainstorming Reverse brainstorming Problem analysis Focus groups

Idea generation, and opportunity recognition, shaping and Reshaping (2) Is Your Idea an Opportunity? See the trends : * How big is your market? * Market size today and future? * Frequency and price? * Margins?

Business planning or how to develop a business plan (1) Why a business plan is important: writing a business plan makes you: think about all aspects of your business helps you secure financing helps you communicate your ideas to others can serve as a tool for managing your business

Business planning or how to develop a business plan (1) What is a business plan: A business plan is a written document that describes what your business will produce, how you will produce it, who will buy it and the people who are running it. Most importantly It describes your (USPs) Unique Selling Points or competitive advantage.

Business planning or how to develop a business plan (3) Common mistakes made in business planning : unrealistic financial projections an undefined target market poor research ignored competition

Early decisions Select a type of ownership (three types) 1. Starting a New Business 2. Taking over or Run an Existing Business 3. Own a Franchise

Market your business (1) The Value of Marketing Marketing is used to determine and satisfy the needs of customers. New businesses must determine who their target market is. Market research identifies what your customers need and want.

Market your business (2) Create the Marketing Plan The marketing strategy identifies how goals will be achieved. Your strategy should address Product introduction; Promotion; Pricing; Distribution; Sales or market share.

Market your business (2) Create the Marketing Plan The purpose of the marketing plan is to define your market, identify your customers and competitors, outline a strategy for attracting and keeping customers, and identify and anticipate change.

Market your business (3) Identify Your Competition There are two types of competition—direct and indirect. Direct competition comes from a business that makes most of its money selling the same or similar products or services as another business. Indirect competition comes from a business that makes only a small amount of money selling the same or similar products or services as another business. A competitive analysis finds competitors’ strengths and weaknesses.

Market your business (4) The Marketing Mix Product: Product Mix; Features; Branding, Packaging, and Labeling. Price: Set Pricing Objectives (Maximize sales; Increase profits; Discourage competition; Attract customers; Establish an image); Consider the Return on Investment; Determine the Market Share; Price a Product (Demand-Based Pricing; Cost-Based Pricing; Competition-Based Pricing). Place/Distribution: Channels of distribution may be direct or indirect Promotion: promotional mix

Human Resource Management (1) Hire Employees and mnanage your staff create an organizational structure that shows how the different jobs in your company relate to each other. You should write job descriptions that list the specific responsibilities of each job.

Human Resource Management (1) Hire Employees and mnanage your staff recruiting employees: screen applicants then interview those who seem good for the job. Check the references of your final candidates and then offer the position to the most qualified person. In addition to hiring permanent employees, you can also hire freelancers, interns, or temporary workers.

Human Resource Management (1) Manage your staff Lead your employees Motivate your employees by treating them fairly and listening to them. Evaluate your employees

Finance, protect and insure your business (1) Make a Financial Plan Startup costs: consist of equipment and supplies, furniture and fixtures, vehicles, remodeling, and legal, accounting, and licensing fees needed to establish a business.

Finance, protect and insure your business (1) Make a Financial Plan plan will consist of startup costs and four financial statements: a cash flow statement, an income statement, a balance sheet, and a personal financial statement. All of these statements, except the personal financial statement, will be pro forma financial statements.

Finance, protect and insure your business (2) Obtain Financing for Your Business You may finance your business with a secured or an unsecured loan from commercial banks. other organizations can offer loan guarantees such as government agencies. You can also consider financing your business with equity capital.