1. Entrepreneurship

2. 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

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

4. Introduction

5. 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.

6. 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.

7. 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.

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

9. 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

10. 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

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

12. 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?

13. 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

14. 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.

15. 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

16. 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

17. 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.

18. 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.

19. 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.

20. 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.

21. 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

22. 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.

23. 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.

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

25. 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.

26. 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.

27. 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.