Entrepreneurship

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) • opportunity recognition, shaping and Reshaping • 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 itand 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); Considerthe 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) • HireEmployees and mnanageyour 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) • HireEmployees and mnanageyour 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 • Motivateyour employees by treating them fairly and listening to them. • Evaluateyouremployees

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.