4 Qualities of An Entrepreneur Visionary Passionate Focused Self Motivated Good Business & Industry Knowledge Good Organizational & Managerial Capabilities Excellent Marketing / Interpersonal Skills
5 Starting A Business Starting WantNeed Take the business to them Develop a business to meet their need
6 Starting A Business Continued Select an income generating business idea Business is not feasible Gather information about the business idea Business is feasible Write a business plan
7 Identifying an income generating biz How much should the business generate? –Equivalent salary if employed within 3 -5 years Demand/need should outstrip supply Preferably a business that is self sustaining e.g. phone calls are made 24/7 The survival of a business is not dependent on the speed strength or intelligence of the entrepreneur rather on the ability to adapt to change Opportunity meets preparedness
8 Identifying an income generating biz…2 Networking with like minds: intelligence and network of great friends and mentors Smart people, people who will encourage you support you recommend you etc Initiative taking action to tap into the opportunity identified, ingenuity drive and hard work Some are surrounded by opportunity yet either do not see it or cannot tap into it. If you have been cultivated or have the habit of taking advantage of opportunities you will.
9 What is a Business Plan? A Business Plan is an action plan for the purpose of starting and running a business. The Business Plan describes the business, its target market, strategies and financial forecasts If you fail to plan you plan to fail
10 Importance of a Business Plan Helps think through the entire business process to examine viability and avoid pitfalls Provides answers to questions that increase chances of success; e.g. Target market, Competition, Business Model A tool for communicating your business potential; attracting investors & good talents.
11 Before Getting Started Writing; Clarify Goals: –To raise capital –Serve as a guide to run the business –Or both Read sample Business Plans Set up a table of contents that suits your business to guide your writing
12 Business Opportunities Accounting Firm Auditing Firm Tutoring Tax Consultant Financial Advisory Services & Consulting Investment Advisory Services IT Services CEO
14 Writing Style Be as clear and simple as possible Ensure the Plan is an Interesting Read Go straight to the point
15 Business Plan Outline ( A Sample) Title Page Table of Contents Executive Summary General Company Description Management/Legal Structure Products & Services Capital Requirement & Start-Up Expenses Industry & Market Analysis Marketing Plan Operational Plan Key Risks & Mitigants Financial Plan Appendixes
16 Executive Summary Should be complete, concise & convincing (1-Page Elevator Pitch- Written Last) Contain Business Fundamentals –Product/Service –Target Market/ size/ potential growth –Existing & Long Term Demand –3 Critical success factors ie lifeline –Uniqueness and innovation –Capital requirement –Short and Long Term Profit, ROI
17 Common Pitfalls in Business Plans Boring executive summary with insufficient information Not defining target market Being too technical/complex Too much irrelevant information Unrealistic assumptions & projections Poor market and competitive analysis
18 Business Plans DONTS!!! Underestimation of difficulty of growing a business Underestimation of Competition Inclusion of highly confidential and proprietary information