Managerial Process Skills Prachi S Karnik Parashar-15 Prof: Vilasini Patkar

Two opposite approaches? Or the best of both? Choosing a Business to start

Questions to be thought over before starting a business Is owning a business right for me? Am I cut for entrepreneurship? Am I ready to take risk? What type of business do I want to start?

Two Approaches The Traditional ApproachThe Traditional Approach The Modern ApproachThe Modern Approach

The Traditional Approach Methodical, scientific process.Methodical, scientific process. The approach consist of researching the market, identifying a need and creating a business to fill it.The approach consist of researching the market, identifying a need and creating a business to fill it.

The steps of the process are: Select the industry.Select the industry. Research the kinds of business and various business models.Research the kinds of business and various business models. Perform market research.Perform market research. Analyze the competition.Analyze the competition. Develop a preliminary business plan for a business to meet that need.Develop a preliminary business plan for a business to meet that need.

Contd… Do market research to assess the realistic market potential for your business. (will people buy it?)Do market research to assess the realistic market potential for your business. (will people buy it?) Revise the business plan.Revise the business plan. Seek out lenders or investors.Seek out lenders or investors. Start the business.Start the business.

Problems to Traditional Approach Extremely labor intensive and potentially expensive.Extremely labor intensive and potentially expensive. Realizing far too late that you are doing something you really don’t want to do.Realizing far too late that you are doing something you really don’t want to do.

The Modern Approach Do What You Love, and the Money Will Follow

‘Do what you love until you go broke and can’t do it any more’.

Some of the common scenarios include: No one wants to buy your product.No one wants to buy your product. Someone else already thought of it.Someone else already thought of it. There’s more to it than you realized.There’s more to it than you realized.

Traditional Approach + Modern Approach

The Best of Both Worlds Some of the possible sources for business ideas include: Self- discovery Inspiration Observation Imitation

It doesn't matter where the idea comes from. What matters is what you do with it. External input Informal research

You can ask your friends and family.You can ask your friends and family. Let them know your exact idea. Let them know your exact idea. Give them honest, detailed feedback on the idea. Give them honest, detailed feedback on the idea. Think a viable business concept, put together a basic business plan.Think a viable business concept, put together a basic business plan. Try to seek advice of successful entrepreneurs.Try to seek advice of successful entrepreneurs. Turn to an online community.Turn to an online community. Higher the risk, the more formal research you need.Higher the risk, the more formal research you need.

You can pursue your passion, tempered by proven practices and improve your possibilities of prosperity.