Components of Successful Entrepreneurial Venture | Greg Flahive

1. Components of Successful Entrepreneurial Venture Greg Flahive

2. Components of Successful Entrepreneurial Venture 6. The Business Plan • The business plan describes your business concept and outlines the structure needed to be in place to successfully implement the concept. • The plan can be used to assist in obtaining the additional resources that may be necessary to actually launch the business and guide the implementation of the strategy. • It assumes you have a feasible business concept and have now included the operational components needed to execute the strategy. • It describes in some detail the company you are going to create.

3. Advantages to becoming an Entrepreneur • Control • Excitement/Enthusiasm • Flexibility • Freedom • Decision making

4. Disadvantages to being an Entrepreneur • Administrative challenges • Staying ahead of your competition • Loneliness • No regular salary • Work Schedule

5. Target Market • A group of customers towards which a business had decided to aim its marketing efforts and ultimately its merchandise. • A well-defined Target Market is the first element to a market strategy. • You have to make some educated guesses about the age group your product or service will appeal to.

6. Have You… 1. Invented something or knows someone who has – what? Had a lemonade stand – where? Had a part-time or summer job – what? Been involved in organizing a school or community event – what? Put together a budget and stuck to it – when? 10. Experience in sales – what? 6. 7. 2. Set a goal and achieved it – what? 8. 3. Been involved in fundraising for a charitable cause – what? 4. Been inspired by someone – who and why? 9. 5. A relative who runs his/her own business – who?

7. Principal Reasons Why Canadians Start Businesses of Their Own 1.To seize an opportunity Had previous experience they wished to use To supplement their income from other employment To create a job for themselves Frustrated in their previous job 11. To make lots of money 7. 2.To achieve a sense of personal accomplishment 8. 3.Dreamed of running their own business 4.A chance to use their experience/skills 9. 5.To be their own boss 10. 6.Economic necessity; to make a living

8. Entrepreneurs Can Play a Number of Roles in the Economy 1. Create new product and/or service businesses. 2. Bring creative and innovative methods to developing or producing new products or services. 3. Provide employment opportunities and create new jobs as a result of growing their businesses consistently and rapidly. 4. Help contribute to regional and national economic growth. 5. Encourage greater industrial efficiency/productivity to enhance our international competitiveness.

9. Components of Successful Entrepreneurial Venture 1. The Entrepreneur • It all begins with the entrepreneur, the driving force behind the business and the coordinator of all the activities, resources and people that are needed to get it off the ground. • This individual will have conducted an assessment of his or her own resources and capabilities and made a conscious decision to launch the business. 2. Opportunity • The entrepreneur must then find a concept or idea with the potential to develop into a successful enterprise. • The concept is carefully evaluated to determine if it represents a viable opportunity. • The object is to determine the magnitude of the returns expected with a successful implementation.

10. Components of Successful Entrepreneurial Venture 3. Organization • To capitalize on any business opportunity, an organizational structure must be established, with a manger or management team and a form of ownership. 4. Resources • Some essential financial and other resources must be obtained. The key usually is money. It is the “enabler” that makes everything else happen. Other key resources typically include physical plant and equipment, technical capability, and human resources. 5. Strategy • Once a start-up appears likely, a specific strategy must be developed and a feasibility study conducted. • The feasibility study is a way to test your business concept to see whether it actually does have market potential. • Throughout this process you probably will modify your concept and business strategy several times until you feel that you have it right.

11. Myth 1 Entrepreneurs are born, not made • While entrepreneurs may be born with a certain native intelligence. • Possessing these characteristics does not necessary make you a successful entrepreneur.

12. Myth 2 Anyone can start a business. It’s just a matter of luck and guts. • Entrepreneurs need to recognize the difference between an idea and a real opportunity to significantly improve their chances of success.

13. Myth 3 Entrepreneurs are gamblers • Successful entrepreneurs only take what they perceive to be calculated risks. • They do not deliberately seek to take unnecessary risks, but they will not shy away from taking the risks that may be necessary to succeed.

14. Myth 4 Entrepreneurs want to run the whole show themselves • It is difficult to grow a business when you work alone.

15. Myth 5 Entrepreneurs are their own bosses and completely independent • Entrepreneurs can serve a number of masters including:

16. Myth 6 Entrepreneurs work longer and harder than corporate managers • There is not evidence at all that entrepreneurs work harder than corporate managers. • Both jobs require long hours and hard work. • Owners are tied to the business and responsible in ways that are different from employees’ roles.

17. Myth 7 Entrepreneurs face greater stress and more pressures, and thus pay a higher personal price in their jobs than do other managers • There is no evidence being an Entrepreneur is more stressful than other demanding professional roles. • Most entrepreneurs enjoy what they do and have a high sense of accomplishment. • They thrive on the flexibility and innovative aspects of their job and are less likely to retire than those who work for someone else.

18. Myth 8 Starting a business is risky and often ends in failure • Success tends to be more common than failure for higher- potential ventures because they tend to be directed by talented and experienced people able to attract the right personnel and the necessary money and resources. • Owning your own business is a competitive game, and entrepreneurs have to be prepared to run out of time occasionally. • Many well-known entrepreneurs experience failure, sometimes several times, before achieving success.

19. Myth 9 Money is the most important ingredient for success • Money is one of the important ingredients of success but entrepreneurs are not assured of success if they have money. • If the other important elements and the people are there, the money tends to follow.

20. Myth 10 New business start-ups are for the young & energetic • Age is absolutely no barrier to starting a business of you own. • Over time you gain experience, competence, and self- confidence. These factors increase your capacity and readiness to start a business. • Most high-potential new businesses are being started by entrepreneurs between the ages of 25-40.

21. Myth 11 Entrepreneurs are motivated solely by their quest for the almighty dollar • Having a sense of personal accomplishment and achievement, feeling in control of their own destiny, and realizing their vision and dreams are also powerful motivators. • Money is viewed principally as a tool and a way of “keeping score.”

22. Myth 12 Entrepreneurs seek power and control over other people so that they can feel “in charge” • Successful entrepreneurs are driven by the quest of responsibility, achievement, and results. • They thrive on a sense of accomplishment and of outperforming the competition. • They gain control by the results they achieve.

23. 13 Reasons Why Small Businesses Fail Poor market research = incorrect understanding of the market’s wants and needs Lack of financial and insufficient planning Failure to innovate Poor inventory management Poor communications throughout the business Failure to recognize strengths and weaknesses Trying to go it alone 7. 1. Poor cash flow management 2. Lack of understanding of how to hire, retain, and motivate the right people 8. 9. 3. Absence of performance monitoring 10. 4. Poor debt management 11. 5. Over borrowing 12. 6. Excessive reliance on a few key customers 13.

24. Entrepreneur’s Dozen Ranks the risks and possible rewards ■ • Examine needs, wants, and problems for which he/she feels something can be done Evaluates the risk and possible rewards and makes a decision Never hangs on to an idea, as much as it is loved, if research shows it won’t work Employs the resources necessary for the venture if the decision is made to go ahead Understands that any entrepreneurial venture will take a great deal of long, hard work Realizes a sense of accomplishment from successful ventures and learns from failed ones ■ • Narrows possible opportunities down to one specific opportunity ■ • Thinks of an innovative idea ■ • Researches the opportunity and idea thoroughly ■ • Enlists the best sources of advice and assistance that can be found • Plans the venture and looks for possible problems that might arise ■

25. Entrepreneurs in Greater Moncton • List 5 entrepreneurs in the Greater Moncton area and the nature of their business. ■ Sources of Information Phone one of them. Entrepreneurs love talking about their business. ■ Ask your parents ■ Phone book ■ Internet ■ Library ■ • In a well-developed paragraph, list at least five contributions that these entrepreneurs make to our society.

26. Envirobond – Video Questions A crash course on how not to run your own business. Mike Reid, an inexperienced small-businessman, started a company to produce a material made from small stones and organic glue to use in pathways and driveways. Mike reached out to his family and local bank for financing to help keep his dream alive, but the business did not get off to an easy start due to supplier problems and other issues. After a full season of activity and an investment of over $30,000, Envirobond is in the same situation in which it started – with no sales prospects and no cash flow. Reid now only hopes that he can survive until next year and begin again.

27. Envirobond – Video Questions 1.What initial challenged did Reid face on starting Envirobond? 2.Would having a partner have helped Reid? 3.How important is outside help from family and friends when deciding to venture into a business on your own?

28. Thank You