1 / 13

Entrepreneurship

Creates a new businessFaces risk and uncertaintyPurpose is to achieve profitsGrowth by identifying significant opportunitiesAssembling the necessary resourcesCapitalize . Who is an Entrepreneur?. Desire for ResponsibilityPreference for Moderate RiskConfidence in ability to succeedDesire for immediate feedbackHigh level of energyFuture orientationSkill at organizingValue of achievement over moneyHigh degree of commitmentTolerance for ambiguityFlexibility.

sileas
Download Presentation

Entrepreneurship

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Entrepreneurship Course Book Entrepreneurship Theory Process Practice 6th Edition By Donald F. Kuratko Richard M. Hodgetts South-WesternThomson

    2. Creates a new business Faces risk and uncertainty Purpose is to achieve profits Growth by identifying significant opportunities Assembling the necessary resources Capitalize Who is an Entrepreneur?

    3. Desire for Responsibility Preference for Moderate Risk Confidence in ability to succeed Desire for immediate feedback High level of energy Future orientation Skill at organizing Value of achievement over money High degree of commitment Tolerance for ambiguity Flexibility Entrepreneurial Profile

    4. Do your homework Find out what your zoning restrictions are Choose the most efficient location for your office Focus on your home-based business idea Discuss your business ideas with your family Select an appropriate business name Buy the right equipment Dress appropriately Learn to deal with distractions Realize your own phone can be your best friend/enemy Be firm with friends and neighbors Take advantage of tax breaks Make sure you have adequate insurance coverage When to hire outside employees Get a post box Use network facilities Be proud of your home-based business Be prepared to welcome your clients at home Home based entrepreneurs – 18 rules

    5. Failing to spend enough time researching the business idea to see if it's viable Miscalculating market size, timing, ease of entry and potential market share. Underestimating financial requirements and timing. Over-projecting sales volume and timing. Making cost projections that are too low. Hiring too many people and spending too much on offices and facilities Lacking a contingency plan for a shortfall in expectations Bringing in unnecessary partners Hiring for convenience rather than skill requirements Neglecting to manage the entire company as a whole Accepting that it's "not possible" too easily rather than finding a way Focusing too much on sales volume and company size rather than profit Seeking confirmation of your actions rather than seeking the truth. Lacking simplicity in your vision Lacking clarity of your long-term aim and business purpose Lacking focus and identity Lacking an exit strategy 17 Mistakes Start-ups Make  

    6. Inventor: A unique idea for a product or service that was never there before. Companies are willing to buy the idea and make it their own for production. Entrepreneur: Anyone who identifies an opportunity and exploits it in the form of a business. Innovators are those who dwell in improvising of something new in a product / service that is already in use. Entrepreneur Vs Inventor VS Innovator

    7. A business concept is only an idea until a feasibility (study) or business plan has been written to prove it has the potential to be a valuable business.” The conceptual model of a new venture should explain: What value is to be exchanged? To whom? For what? By what means? Where? Made by whom? Marketed by whom? Financed by whom? Entrepreneurship Concept Development

    8. It won’t work There is no real need There are hidden traps Unfortunate economics (costs are too high) There is no protection Obsolescence Installation Education Changing consumer behavior Assumptions Inconvenient Service requirements Some Fatal Flaws A pessimist approach

    9. Involves significant savings Solves serious problem Offers convenience Fits existing scheme of things Attracts media attention Clearly identifies market Captures a monopoly (BCG) Joins a rapidly expanding market Promises a big upside; low downside Strong Attributes of Successful Products

    10. No investment – “Adept entrepreneurs are cautious about starting a venture that requires large investments of their own money.” Recognized, established market – “Astute (clever) entrepreneurs look for some market confirmation for what they propose to do.” Perceived need for product – “Adept entrepreneurs recognize that a product or service that requires educating the market has a higher cost than a product/service with an established perceived need.” Dependable source of input supply – “Adept entrepreneurs make sure they have adequate supplies so they can provide what they sell.” 5. No governmental regulation – “If a business involves governmental regulations, the entrepreneur must understand how they will affect the business in both time and money.” 6. No labor – “If a business requires many employees, the entrepreneur must be willing to accept the responsibility and challenge of managing people.” Entrepreneurial Business 23 Traits

    11. 100% Gross Margin – “A good business usually has a high gross margin. However, if the venture has a low gross margin, methods can be developed to raise it. Every percentage point of increase in the gross margin will affect the profit of the business.” Buyers purchase frequently – “A concept that has repeat customers after the initial sale is easier and cheaper to market.” Favorable tax treatment – “If the business has some tax advantages, it is easier to attract investors.” Receptive, established distribution system – “Whenever possible, adept entrepreneurs look for a concept with an existing distribution system.” Great news value – “Adept entrepreneurs find the newsworthy feature of a concept, such as fads, trends, and the like and then write a press release or feature story to distribute to local news outlets.” Customers pay in advance – “The business with payments in advance is one of the easiest concepts to launch.” Entrepreneurial Business 23 Traits

    12. No product- or service-liability risk – “Liability insurance is a rising expense for businesses today.” No product obsolescence – “If the concept has a short life cycle, adept entrepreneurs continue to add innovations or add more spin-offs to replace the obsolete products or services.” No competition – “Competition is a double-edged sword. Too much or too little can be dangerous.” No fashion obsolescence – “Fashion products and services usually have a short life cycle.” No physical perish ability – “If the product is perishable or has a short shelf life, adept entrepreneurs will find a method to sell the product quickly.” Impervious to weather – “Adept entrepreneurs think of alternative uses for the product/services if weather is a concern. Products affected by weather will greatly affect income projections.” Entrepreneurial Business 23 Traits

    13. Workable and feasible product/service – “Many inventions look good in the prototype phase but can never be mass produced.” Proprietary rights – “New concepts that have proprietary rights have a much better chance of succeeding in the marketplace.” Continuous revenue flow – “Adept entrepreneurs develop concepts that allow customers to return and make repeated purchases, such as buying additional supplies for the product/service, renewing an annual contract, or regular maintenance and service.” No legal entanglements – “Lawyers are expensive and time consuming…avoid concepts that require extensive legal services which result in higher operating costs and consequently higher prices.” Exit potential – “Entrepreneurs will exit someday – even if other family members become the new owners. Planning an exit strategy should take place simultaneously with planning to launch a new venture.” Entrepreneurial Business 23 Traits

    14. Term presented by: David Birch It is a business establishment with at least 20% sales growth every year, starting with a base of at least $100,000 What benefits do these Gazelles bring to national economy? Case Study Who are Gazelles?

More Related