1. Introduction Business Management

2. The Role of Business 0 Needs vs. Wants 0 Businesses aim to meet the needs and wants by: 0 Producing crops or extracting raw materials 0 Creating a product 0 Providing a service Inputs Outputs

3. Business Activity human physical financial enterprise production goods services InputsProcesses to add value Outputs

4. Business Functions Human Resources Marketing Finance and accounts Operations management / production

5. Sectors of Business Activity Services Goods Quaternary Tertiary Secondary Primary Services focused on knowledge IT, web-based, media All services, sometimes manufactured products Finance, leisure, education etc. All services, sometimes manufactured products Finance, leisure, education etc. Manufacturing Raw materials Extraction, mining, farming, fishing, etc. Raw materials Extraction, mining, farming, fishing, etc.

6. Chain of Production 0 Read the definition of production chain on p. 6 0 Think what primary, secondary, tertiary, quaternary business are involved in 0 Production 0 Distribution 0 Marketing

7. Sectoral Change 0 The size of each sector of the economy may change 0 individual, bussinesses and countries develop 0 Social technologies means the social context where the business functions 0 Skill level of workforce and “sophistication” of consumers’ needs 0 Development of economy (moving from primary towards quaternary sector) develops social technologies and viceversa.

9. Entrepreneurship & Intrapreneurship 0 Entrepreneur 0 An individual who demonstrates enterprise and initiative in order to make profit 0 Intrapreneur 0 An individual employed by a large organization who demonstrates entrepreneurial thinking in the development of new products and services 0 They are both types of people who want to create a new start-up, either for a product or a whole new business 0 Innovation 0 Market reading 0 Need seeking 0 Technology driving

10. Reasons to starting up a business Interest Independence Necessity Challenge Rewards Finding a gap Sharing and idea

11. The process of starting up a business 1. Organizing the basics 1. Organizing the basics 2. Market Research 2. Market Research 3. Planning the business 3. Planning the business 4. Legal Issues 4. Legal Issues 5. Raising finance 5. Raising finance 6. Testing the market 6. Testing the market

12. 1. 1. Organizing the basics 0 Where is the business going to be based? 0 Name? 0 What will be the legal structure? 0 What will be the operational structure? 0 Is there sufficient infrastucture? 0 Suppliers? 0 Potential customers? 0 Government services?

13. 1. 2. 2. Refining the business idea through market research 0 The entrepreneur should do market research to determine how the business will distinguish itself 0 What is the precise market segment you will target 0 How will the research be made? 0 Who will be the target market? 0 Can the business concept be tested? 0 What will be the unique selling proposition? 0 How will business communicate with market?

14. 1. 2. 3. 3. Planning the business 0 Once the concept has been narrowed a business plan should be written 0 The business plan will serve multiple stakeholders, especially potential investors Business Plan: A document that addresses all the issues that need be planned before operations may begin Business Plan: A document that addresses all the issues that need be planned before operations may begin

15. 1. 2.3. 4. 4. Establishing Legal Requirements 0 Labour Practices 0 Operational Practices 0 Tax obligations 0 Licences / inspections

16. 1. 2.3.4. 5. 5. Raising the finance 0 Convincing investors/lenders with your business plan 0 Who will do the accounts? Who will (external actor) make sure they are accurate? 0 Investors vs. Loan

17. 1. 2.3.4.5. 6. 6. Testing the market & Launch 0 Should the business start on a small scale (a pilot) to test the consumer reaction? 0 What will be the pilot success criteria? 0 How is the business idea received by customers?

18. Problems new businesses face 0 Organization 0 Location is appropriate 0 The name does not register 0 Supplies are unreliable 0 Market Research 0 Poor research 0 Wrong target market 0 Weak communication channels

19. Problems new businesses face 0 Business Plan 0 The plan was not convincing 0 Goals were to vague or contradictory 0 Legal Requirements 0 Labour laws were not addressed 0 Tax obligation were overlooked 0 Finance 0 Raising start up capital was too difficult 0 Accounts were not kept properly 0 Market 0 Launch failed 0 Pilot was inconclusive 0 The product failed to inspire

20. Elements of a Business Plan Set out the idea in the right context How the business will be organized How the business will be staffed How the business will be financed How best to market the product How the product will be made

21. Elements of a Business Plan 0 Starting the business – the idea 0 Core idea, objectives, unique selling point etc. 0 Business organization 0 Location, structure, type of business, decision making, profit sharing 0 HR 0 Responsibilities, rewards, what will be the HR plan, contract type

22. Elements of a Business Plan 0 Finance 0 Start-up capital where and how and at what cost, budgets, income statements, cash-flow forecasts 0 Marketing 0 What market research was done, sales forecast, market segment, promotional mix 0 Operations 0 How is production organized, how many units will be produced, how long will production take, potential lead time, supply chain