Learning outcome Describe the motivation of people who start up their own business What is needed to successfully launch your business Idea generation Personal attribute needed for business Porter generic marketing strategies Break-even point for a business Basic of economics of scale Influence on pricing decision Skills needed for effective selling Development of selling skills Appropriate marketing-mix for different segments

The start-up decision Start-up business is the hard work without guaranteed results. Starting up a business is like taking part in amateur boxing match which you don’t know how other guy is- but unless you get in there and have a go, you never will

Reasons for setting up in Business Blocks Need for regular income Family support No capital Doubts about ability IdeaAction Trigger Push factors Pull factors Unemployment Disagreement with management Does not ‘fit in’ to company No other alternative independence achievement/recognition Personal development Personal wealth

Factors contribute to start-up decision Factors that contribute to start-up your own business are following The antecedents influence on entrepreneurs; their backgrounds, family, age, education, job experience and so on The incubator organization in which they have previously been working; its location, market sector, skills required and so forth The environmental factors external to individual that contribute to the decision ;the economy, role models, availability of finance, advice, staff and other support and so on

Needs to start your own business Idea Person al attribut e Knowledg e of competit ors CustomersResources Launch strategy

Needs to start your own business The Ideas Gaps in the market come from change. Think of changes that are taking place and the implications they may have Product and services you may have seem but not available in your area Change in customer demand and fashion Change in market can lead to opportunity Change in legislation can escort to opportunity for starting up

Needs to start your own business You can create you own change your own opportunity through innovation which could mean Invention Ways of doing things cheaper or better New development in technology

Needs to start your own business Personal Attributes Stamina Commitment and dedication Opportunism Ability to bounce back Motivation to excel Tolerance of risk, ambiguity and uncertainty

Needs to start your own business Customers You need to think of some questions related to your target market Who will be your customers Why will they buy Do your product/service fulfill their needs Is the customer reachable Channels of distribution Market growing or declining How big market is Is product /service unique in any way is market highly concentrated or fragmented

Needs to start your own business Competitors Porter claims five forces determine competition in any industry

Poter’s five forces Competitor rivalry Barrier to entry Power of buyer Threats of substitute Power of supplier

Needs to start your own business Generic marketing strategy COMMODIT Y SUPPLIER NICHE PLAYER OUTSTANDING SUCCESS MARKET TRADER Broad market Focused market Low cost/price Low differentiation High cost/price High differentiation

Needs to start your own business Employees Customers Bankers Suppliers landlords People

Advice to start-ups by Anita Roddick (Body Shop) Network Find out what you want to do Look at competition and decide how you can improve on competition What is your USP(unique selling propositions)