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lectur 1 : The Role of Entrepreneurship and Characteristics of an Entrepreneur

welcome to the first lecturer in this course

The idea of entrepreneurship may sound exciting, but it may not necessarily be for everyone.

There are a number of questions you need to ask yourself as an entrepreneur to determine whether

or not you should go ahead with your great business idea.

In this topic, we will discuss the nature of entrepreneurship and differentiate between entrepreneurship

and entrepreneurs.

Look at the role that entrepreneurship plays in society and also discuss the characteristics of an entrepreneur.

Upon completion of this specific topic you will have discovered how successful you could be as an

entrepreneur and begin the process of identifying potential business opportunity.

OK.

The nature of entrepreneurship in this topic, introduction is the word entrepreneur originates from

the French word "entrepredre" and which means "to undertake" and was firstdefined by Irish-French

economist Richard Cantilan and Jean Baptiste say,a French economist, is believed to have coined

the world "entrepreneur" in the 19th century.

He defined an entrepreneur "as one who undertakes an enterprises, especially a contractor, acting

as intermediary between capital and labor".

And that has been a great deal of attention paid to the subject of entrepreneurship and over the past

years, as many people realized that small firms contribute considerably to the economic growth of

a country and developing countries have established policies and tax incentives that encourage the planning

and implementation of small businesses with the belief that a small business can potentially grow into

a large businesses.

OK, upon completion of this topic, you should be able to define the term "business" and define

"entrepreneurship" and distinguish between entrepreneurship and an entrepreneur and explaint the entrepreneurial

process.

So actually, it is important that you familiarize yourself with some key concepts in the

field of entrepreneurship.

Let's start the topic with defining some of these concepts so businesses defined before a potential

entrepreneur can start a business.

He or she must understand what the essence of a business is.

The term business has a variety of definitions, so let's examine a few. A businesses is, according to FINET "An

organization operated with the objective of making a profit from the sale of goods or services.

And according to Mariotti, in the year of 2006, "The buying and selling of products and services in

order to make a profit".

So the common elements in most of the definition described above are, A business sells or buys.

services and products. The objective of a business is to make a profit.

And all business entities have customers with the specific needs and wants and business requires a

solid financial footing.

Now that you have an idea, how about the elements of a business?

Let's explore the concepts.

Underlying entrepreneurship is what is entrepreneurship?

First, we need to check it out , An entrepreneur one who organizes and manages and assumes risk of a business or enterprise.

So what does entrepreneurship are?

The process of identifying business opportunities, allocating resources and taking risks to produce

the goods and service of value through creative and innovative process to satisfy unmet customer

demands.

So important aspects of entrepreneurship: building upon the definition Niemen et al., and for identfied the

following concepts as integral to the understanding of entrepreneurship and entrepreneurship means that

an individual must be able to identify an opportunity.

This means that there must be a real business opportunity, and second one is be innovation and creativity,

something new and different to defer and require that that is needed by the target audiences and gather

resources.

Actually, it's totally calculated about the capital labor, and operating equipement must be found

on to create and grow a business.

This means the start of a new business venture or the conversion of an existing business and take risk.

The data will be both personal and a financial risks and create rewards : rewards can be in the form of

profit.

or increased value of the business and manage a business.

This means that there must be planning, organizing, leadership and control of all the functions.

So if entrepreneurship is a process of starting a new business, generally, there are also needs

to be someone who undertakes such a process? that is the entrepreneur.

So based on the above definitions an entrepreneurs must : be a risk taker out and be innovative and possess business acumen

and see potential opportunities in the community.

Generally, new organisations started by entrepreneurs are small businesses however, individuals

to plan and implement larger business ventures are also considered entrepreneurs.

We can conclude that entrepreneurship is the business process and the entrepreneur is the persons involved in

implementing the enterpreneurial process.

So overall, the statements in the activity list are very close to each other, so entrepreneurs

represents the person.

So while entrepreneurship represents the process to set up and run a business, you are therefore correct

if you have a grouped members and another one to two and four and seven with the concept of entrepreneurship and

the rest of the numbers with the concept

Of entrepreneur, so entrepreneurship is a difficult task as a majority of new businesses fail.

It is therefore important that the entrepreneur follow the steps in the entrepreneurial process, which

we will discuss next.

So what about the entrepreneurial process?

The entrepreneur process includes these systematic steps required to create an implementing the new

business venture.

This includes all the functions, activities and actions associated with perceiving opportunities

and creating organizations to pursue them.

So entrepreneurs often discover this process through trial and error, but you can shorten shot your

learning curve by benefiting from the experiences of others.

And I hope, given the background of the self-discovery, identifying opportunities and generating and

evaluating ideas, planning and raising startup capital, start up and growth and finally, the harvest.

So the statements in the activity list are very close to each other. Entrepreneur represents the person

While entrepreneurship represents the process to set up and run a business, you are therefore correct

if you have a grouped numbers (II) to (IV) and (VII) on someone through the course of entrepreneurship that has dropped

the numbers.

But the concept of entrepreneur already I have explained that, and the entrepreneurial process

inclued these systematic steps the request to create and implement the new business ventures.

So the role of entrepreneurship in society, like entrepreneurship as a whole contributes to a society's

social wealth by creating new markets and new industries, new technology and institutional forms and

new jobs, and our net increases in the real productivity, the jobs created by entrepreneurship in

turn lead to equitable distribution of income, which results in higher standards of living for the

population.

In this way, the resources available to government also increases.

The tax base grows and additional taxes enables governments to improve social services like hospitals

and schools to enhance infrastructure and to keep law and order.

So according to Benade et al., describes the benefits that entrepreneurship can have for

society, including individuals, families and community as follows.

So employment opportunities, entrepreneurship are not only offers self-employment opportunities,

but also creates employment for others.

Often better jobs on self-employment offers more job satisfaction and flexibility of the workforce,

such job creation initiatives, utilise the human resources of the particular country and help

the natural talent to materialise and many people with disabilities, particularly those in rural

areas where jobs are often scarce and have already created opportunities of themselves through entrepreneurship.

So we can say the entrepreneurship provides self-sufficiency and income generation and fewer

social problems like the successful entrepreneurship activities, increase the income level of the average

person and also the standard of living in the community.

Individuals who search for business opportunities usually create wealth through entrepreneurship.

This wealth plays a considerable role in the development of a nation, and if more people are employed,

more people pay taxes, which means more income for the government.

It also means that the crime rate will go down and the country can become a safer location.

with the more tourists willing to visit the country if tourism increases, more job opportunities

will become available and the more people will be employed.

Entrepreneurship can also attract more foreign investment, which in return can also create more job

opportunities.

and next one is personal challenge. Entrepreneurship is

a challenging task, but

If successful, the rewards are worth the effort. rewards for an entrepreneur can be both their financial

and personal, and the entrepreneurs gains the self satisfaction and the confidence as he or she succeeds.

So improvements in industry like entrepreneurship leads to the development of more industries

especially in rural areas, or regions where

There are very few economic activities.

This does not only mean more goods and services, but but also higher quality products because of

healthy competition between the different businesses.

And the next one is higher productivity and economic growth, and more industries can create higher

production at a lower prices and entrepreneurship encourages the use of local materials to produce

finished goods for domestic consumption, as well as for export.

So entrepreneurship enables the country to produce more and more goods locally and thereby build its

capacity and resources if we change our raw materials into consumable goods.

We add value to our products, which means that we can now receive a much higher prices and at the same

time, create more jobs.

with the new inventions and development in technology, a nation can use its resources more effectively,

and increases in exports and less dependence on imports means their entrepreneurship leads to the development

of new markets, if we produce more.

And if you produce more.

And we can exports products that are not sold locally.

This means that a country products can also enter foriegn markets from time to time a country's government

officials sign agreements with other countries to promote trade.

So these are opportunities that should be taken into account when we are planning and growing our

new business.

So currently, many developing countries, including small states, are really heavily on imports,

especially from the developing nations.

This means that money flows out of the country.

Exports must exceed imports in order to create economic advantage. earnings from exports inevitably

stimulate the economy.

So next topic is characteristics of an entrepreneur,

people become entrepreneurs for different reasons, and many want to own and operate their own business.

They find the challenge appealing, and they don't mind the risk.

Others become entrepreneurs, and because they see little other choices, they don't have a job and

one is not forthcoming, so they start their own business and try to make it work around.

In this season, we will discuss the entrepreneur as a person to discuss what abilities are needed to

be successful in entrepreneurship.

So you will have the opportunity to evaluate your own enterpreneurial competencies of after you have explored

the characteristics of a successful entrepreneur.

So characteristics of an entrepreneur, entrepreneur and business people come from all walks of life

and have different backgrounds and life experience.

Do you remember the definition of entrepreneur, which we discussed in topic 1? and we can

determine four basic abilities from the definition that enable entrepreneurs to develop successful business

ventures.

These included an innovator, a person who attempts to introduce new products and new productive techniques

or new forms of business organization, and a second one is a risk taker, risking not only time,

effort and business reputation, but his her invested funds and those of their other stakeholders,

role players and investors.

A person who takes the initiative to combine land, capital and labor to

produce goods and services, and a person who has the ability to organize multiple people and the

tasks and makes business policy decisions to set the course of the business enterprise.

A successful entrepreneur needs to possess certain abilities and qualities.

these qualities include, a clear vision of goals and motivated to achieve goals?

Coupled with having a high degree of self-confidence and prepared to take moderate risks and our

resilience: being able to take a "no" for an answer without giving up and having initiative and independence

and processing leadership and organizational skills and seeking creative solutions to problems and a positive

outlook and taking responsibility for decision

A positive attitude to all tasks and being enterprising, recognizing business opportunities.

So being entrepreneur is not easy, and in order to succeed, entrepreneurs must demonstrated the

specific characteristics.

Let's look into these characteristics a bit further.

The table below reflects on some of the qualities that help people to better understand themselves

as entrepreneurs in the passionate about their work clear vision and SMART

And this is what smart means a specific, miserable, achievable, relevant and time bound.

Specific: Are your goal precise? detailed and unambigious. measurable.

How will you measure it?

The goals can be measurble by quality, quantity and cost achievable, It is achievable?

Although goals that should be a stretch to the team's capabilities.

They must be within reach and realistic and relevant means does it contribute to the goals and strategies

of the team? and the goals should focus on practical results to be achieved, Time bound, when

will these goals b achieved? is the completion date realistic? and the next one is resilient and organized,

competent in human relations, self-aware and technical knowledge and market knowledge and superior

customer service.

OK, and we are going to discuss about the summary, what we have discussed in this topic and this topic.

We have learned that entrepreneurship is a business process and entrepreneur is a person involved in

the entrepreneurship process and the important aspects of entrepreneurship, include: Identifying an opportunity,

innovation and creativity, gathering resources, creating and growing a business, taking risks and being

rewarded, and managing the business assigned with The four steps in the entrepreneurial process are: identifying and evaluating an opportunity; developing a business plan;

and evaluating an opportunity and altering a business plan and determining the resources required.

And then lastly, starting the managing businesses.

And we have learned that entrepreneurship strengthens the economic growth of a nation.

It provides challenges to those involved in starting and managing a business and coming up with new

ideas and innovations.

The impact that entrepreneurship has on a society can be summarized as follows and creates employment

opportunities, generates income which results in fewer social problems, and offers challenge and also

builds industries.

Increases productivity and economic growth and Increases exports and reduces dependence on imports.

We have learned that entrepreneurs needed to be able to initiate, organize, innovate and take risks

as well as we have also learnt that being an entrepreneur is not easy in order to succeed.

Entrepreneurs must have, or they must develop a very specific characteristics.

Thank you so much.

Thank you again.

lectur 2 : Business Opportunity Recognition

OK, in this topic, we will discuss the concept of business opportunity recognition as an integral

aspect of the entrepreneurial process, and we will build upon the information presented in the last topic

and a move from idea to opportunity.

And recognizing the need to take action in a timely manner to address an identified opportunity.

OK, what about the topic objectives?

Upon completion of this topic, you should be able to describe a business opportunity and its role in

the entrepreneurship process and describe the business opportunity process.

Explain the difference between opportunity and Aiden.

And describe the three generic approaches for identifying opportunities, identifying the key process

of opportunity recognition and describe the purpose of brainstorming and its use as an idea generator.

Explain the purpose of maintaining an ideal bank and apply the opportunity recognition process to real

life situations.

OK, let's start with the opportunity recognition.

According to aBarringer and Ireland (2010) , "An opportunity is a favourable set of

circumstances that creates a need for a new product, service,

or business." that's only a business opportunity they claim must have four essential qualities.

Number one is attractive number two, timely number three, durable or sustainable number four adds

value to customers and anchored in product services are a business.

A business opportunity needs to address the specific needs in the marketplace.

There must be expectation that the potential market will find value in the proposed service a product

and be willing to pay money for it.

The potential market has to be large enough to support continuous growth and ongoing sustainability.

Ideally, the business idea will have a few competitors and ideally the business ideas and new and innovative

and if properly implemented, will have a ready-made market.

And once you have identified an opportunity you should test out your idea with the others around you and explain

your opportunity to others and gauge their reaction to your business idea and seek that impact, so

play the

"What if" game with them.

Ask them.

And number one is, do you think this business opportunity has merit?

Number two?

Am I addressing a real problem, issue or need? number three Would someone pay money for this product

or service?

Number four, how would you change it to make the potential opportunity even better?

And number five Are there other organisations that have already developed with this business idea?

Number six, what issues do I need to consider when developing my business opportunity?

Number seven, what could cause this business opportunity to fail?

And what about the identify and evaluate opportunity. opportunity, identification and evaluation

is a very difficult task?

Most good businesses opportunities do not suddenly appear, but rather result from an entrepreneur's

alterness to possibilities, or, in some case, the establishment of a mechanism that identify potential

opportunities.

OK, and the next one is we will discuss about the developing a business plan.

A good business plan must be developed in order to exploit the defined opportunity.

This is a very time consuming phase of the entrepreneurial process.

An entrepreneur usually has not prepared a business plan before and does not have the resources available

to do a good job.

So a good business plan is essential to developing opportunity and a determining

the resources required obtaining those resources and successfully managing the resulting venture.

So a typical business plan includes the following assessment of the business environment, a competitor's

analysis, description of the business strategy directions.

A detailed description of the potential business that is, the products and services are some of the

legal structures, governance of the business, etc. the management and the decision making structure,

the business organization and the major appointments, marketing and business plan that the multi-year

sales projections, A Human Resource Marketing and Management Plan, Resource and Infrastructure Plan,

a performance management plan.

A detailed multi-year financial plan on timelines for implementation of the plan.

Other issues important to business implementation and growth.

So more about the business planning process will be discussed later in the course.

And you have an assignment to write about the selected business plan for complete

this certification.

We will discuss about the examples of the potential business opportunities.

The examples below assume that there is a demand for this type of business.

and little or no competition exists. and the tourism opportunities.

Manufacturing opportunities are retail opportunities, high tech opportunities like that, for example,

and tourism opportunities, eco tours into the jungle and the rural areas, and day cruises up the rivers

and waterways in the local area, city bus tours, cultural tours, car rental service like that

and the manufacturing opprotunites

will be on distributions of locally produced cloths, or shoes to city retail outlets

and export and distribute local commodities and resources to offshore buyers and transportation services

for agricultural sector and building contract services.

And about the retail opportunities means fast food restaurant, boutique selling in-demand products from

off-shore and electronics store like that and a high tech opportunity means the computer sales and repair services

compter school like e-learning, school and e-learning, consulting and implementation services and programming

and gaming services.

Internet Cafe like that.

So three approaches to opportunity recognition will be the better and with a good idea of what an opportunity

is and its essential qualities are, we can have now examine the various approaches.

that you use to identify a business opportunity. for the specific topic,

We will concentrate on three approaches, namely observing trends and solving a problem and finding

market gaps.

So observing trends means, according to the free directory, a trend is definedas, the general direction

in which something tends to move and the general tendency or inclination and the current style or vogue.

The Papular taste at a given time.

So from the above definition, it is clear to see that trends are what we observe in our everyday

life.

And whatever it is, new clothing or how we wear it ; and the new language of slang in the community;

and a new song or dance craze in town, or maybe a complaint from a particular segment of our society.

These trends create opportunities for entrepreneurs to pursue, according to Barringer, note that the

most important trends are economic forces and social forces, technological advances and political action

and regulatory change.

And it is important as an entrepreneur to be aware of changes in these areas as they will provide

challenges and opportunities for your business venture.

Look at Dr. James Canton predicts that the top 10 business trends in the future will

include number one, as business and technology have fused into one system, one conversation and one

strategy for one world.

This is central to understanding the new future.

Number two innovations are about new business models and enterprise and marketplace collaboration,

new leadership and knowledge engineering. number three knowledge engineering the information

and networking and formation of knowledge that which creates results.

And is it the true assets of the 21st century.

The capture and analysis of customer information about product or service use, needs,

wants and desires and behavior is mission-critical to the enterprise.

the integration of customer touchpoints across all channels and is essential to future success

or watch out for the breakdowns and the capacity of an organization to understand the key trends

that will shape the future of technology customers, the society and the marketplace will determine

the survival of the enterprise and more disruptions are coming in the form of emerging markets and electronic

changes or security breaches and changing customers demographics.

Human capital and the value of talent will be the most valuable resource in the 21st century, and entirely

new industries will be formed by innovations yet to be brought to market and to look for the health

enhancement, interactive TV nanotech and on-demand supply chains to emerge.

And a new future will need new leaders that are aware of how to attract talent and to manage innovation.

Set high visions and execute profitably.

That is a new paradigm about leadership that is emerging.

So according to canton's ideas should be considered when considering their specific business opportunity.

OK, now let's examine the process of defining an opportunity and problem solving according to 100venture

"a problem is simply the difference between what you want and what you have".

It further the suggests an old saying "there are no problems- only opportunities". for many

entrepreneurs.

Opportunities come into the form of a problem looking for a solution?

Once you are able to come up with a solution to a recurring problem in your society, you are well

on your way to creating a product service, a business so problem solving process and many problem solving

techniques and models exist.

But almost all containing the following are five major activities, Define the problem.

All the right question: Who , What,When, why and how on second one is option options.

What options are available to solve the problem?

And third one is analyze the options and seek answers to the questions, examine each potential option

and analyze the answers and options and evaluate the results.

Implement the favoured options, so put the result into

practice by testing and fine tuning until it achieves an acceptable working standard evaluate the

results: determine if the implemented solution addresses the problem at hand.

OK, and finding gaps in the marketplace every now and then demands in the marketplace go unfulfilled

for a considerable length of time.

So gaps occur when products or services needed by a specific group and go largely ignored by the mainstream

providers because of their small numbers.

This is sometimes called a niche market, and in such circumstances, an enterpreneur sees such a problem

or a gap in the marketplace as a potential opportunity waiting to become a business.

In some other cases, this gap in the marketplace are found in existing products and services, and

customers normally voice their opinion about the products and services they currently consume through

complaints and other forms of feedback.

So this information provides adequate data to examine the issues or problems involved with

a view, turning them into an opportunity for a solution.

Some examples of early entrepreneurs recognizing gaps in the marketplace include: Thompas Edison,

and Thomas Edison, Henry Ford and Richard and Maurice McDonald and Steven Jobs.

So Thomas Edison identified a market need for the phonograph with movie camera and the light bulb.

He opened the first power station on Manhattan Island to power street and home lights in New

York, and Henry Ford saw the need for making automobiles that were affordable for the general public.

He created the production line to reduce manufacturing costs and thus made the automobile affordable.

The brother, Richard and Maurice McDonald saw a need for a fast food restaurant to support

the growing and active population in San Bernardino, California, and Steven Jobs, and saw the need

for affordable entertainment options that support the mobile on the go individuals.

The result was iTunes, the iPod, the iPhone and now the iPad.

What these early entrepreneurs brough to the market, where innovative products that no one else had considered.

Each new product was effectively marketed and met an immediate need and helped grow some very small

companies into international corporations.

All it takes is a new and innovative solutions, so innovation and entrepreneurship we need to discuss

about the innovation is key to the success of any entrepreneur.

According to Peter Drucker in his book, Innovation and Entrepreneurship indicates that innovation

is not just an inspired idea.

Innovation requires organization and systematic thought and practice and rational work.

And, according to David Zilberman states that "excessive regulations, the rigid hierarchy, lack

of freedom and excessive control discourage entrepreneurship".

And he implies that innovation comes from openness to new ideas and the freedom to investigate without interference.

And, according to Zilberman, dedines innovation as a new way to achieve a specific task.

And he categorized innovation as either a process innovation or product innovation and recognizing

an opportunity.

The characteristics that make some people better at recognizing opportunities than others include with

prior experience, prospective enterpreneurs with the prior experience in a particular industry, are sector

stand a good chance of identifying an opportunity from the myriad of problems facing their industry

they are more inclined to think of possible solutions on a frequent basis than someone who is not in

the industry and intellectual curiosity.

Those who want to know why or are willing to explore new ideas as potential opportunities are.

The key idea here is "what if" and innovative and creativity and innovative and creative.

Those that can think outside of the box and can create solutions that no one has considered will see

opportunities everywhere?

Networking: The successful entrepreneur will be able to network with others and explore opportunities

that his or her peers and colleagues identify as potential business ventures and access risk: The potential

entrepreneurs can quickly identify a problem and identify potential solutions, and has the ability

to identify the potential risks of facing any potential solution and motivation.

The potential entrepreneur needs to be self-motivated and self-starter to be able to see and pursue

potential opportunities.

So the opportunity recognition process there are a number of models that explore the process of opportunity

recognition one is described below.

According to Lampkin ,Hills and Shrader, Opportunity recognition. one is a

"vitally important area of entrepreneurship" and an "essential aspect of understanding entrepreneurship".

OK, so what about the topic summary after reading

this topic is that you should have a better understanding of how to recognize business opportunities

and how to write a business plan and a business opportunity can arise from solving a problems or addressing

an unmet need.

And it is important to observe trends and identify gaps in the marketplace and prior experience

is helpful in identifying business opportunities.

lectur 3 : Startup Business Ideas

OK, next.

Coming up with a business idea for startup and this topic, we need to give some introduction of the

specific topic now.

And every business starts with an idea the idea is further developed using a typical five step process

illustrated in the flow diagram below.

This topic, we will explore how to come up with a solid business idea using this files to process

now and from the process of idea to concept and concept of model and model to plan.

And finally, it reflects the start of the process and topic objectives.

Upon completion of this topic, you should be able to identify business ideas and explore reasons for

starting a business and identify your business ideas that could be implemented in your community to

meet existing needs.

And describe the factors that influence the starting of a business and relate them to your situation.

So what about your business idea most likely have decided to take

this course because its part of your business.

Two reasons number one is you have a great idea for a small business and you want to learn how to go

about its implementation in order to create a successful small business.

And second one, as you are already running your own small business and you want to learn about

how you could make your business more successful.

So as you begin to develop your business idea or opportunity, consider the following.

Is this a new idea or has it been tried before?

Is my idea feasible?

And if it was tried before, why did it fail?

And what can I learn from past failures?

And who am I targeting and who are my competitors?

And or would I be able to compete in the market?

And is the market is saturated?

And how will I offer a better product or service than my competitors?

Actually, reasons for starting a business means it's not easy, but it can be forwarding and rewarding.

Being an entrepreneur means taking a lot of risk, but it also has lots of potential benefits when things

work out.

So if if you are on the fence still thinking about quitting your job and starting out on your own here?

There are six reasons to persuade you to make that move. and next one is earning potential.

When you own your own business, you have the ability to potentially earn much more money than you are

likely to ever earn in your day to day job, and you will be able to earn money or lose money, maybe

based on your drive or luck of commitment and ideas.

So second one is be your own boss and rather than doing what you are told and it would not be be better

to be the one boss.

And when you want your own business, it is likely that you will have to work even harder.

But they will do so under your own rules and You will choose when to go on holiday and went to go home.

And when something is likely to be effective for your business, you should remember.

However, the entrepreneurialism is as much about the self-discipline as it is about personal freedom.

And next one is higher like-minded people, you will be able to choose who you work with and

you will be able to choose your team and with your demand.

However, this can be much harder than it seems, and you will need to find individuals who can complement

your own skills if you are to be successful.

According to Gerber (1976), notes that a start a business needs a visionary like

the entrepreneur, managers and technicians, he states that no one person can perform all of these

roles in a startup business early on in your business forumulation, and you will need to think of the

type of people you need to recruit.

The next one is Achievement there is very little you can do.

That's wothy of

more kudos than building a company, so business helps the world go around, and many businesses

do even more than.

And imagine what the world would be like today without a certain websites or internet based

products, and some ideas are much more than just a way to make money.

Once you have achieved what you aim to do, there's no better feeling. The rush you get when one

of your ideas.

Work is unbelievable. and next one is

Change: people who have entrepreneurialism within their blood will always think of ways to improve

upon their ideas.

For example, have you ever been in a situation?

where yu have considered how your current employer could be more efficient? and ways that they could

drive more sales and decrease costs and improve customer services?

And when you own your own business and you will be able to profit from these changes, and not only

that, you will also be able to profit from these changes if you make the right decisions.

All right, next one is, we need to discuss about the experience.

When you start your own business, it's possible that you will fail.

So but that is a part and parcel of being an entrepreneur.

However, if you fail,get up again, if persistent, you may succeed the second or third time

around.

In some cases, failure is.

Good and from failure, you will have a gain knowledge and experience the next time around.

So this experience will work well for you

If you ever decide to start another venture or even go back into the workplace.

Some investors like working with entrepreneurs who have started other companies in the past and that

they do that for one reason.

They know that experience counts and that have learned from their mistakes.

And next one is developing your idea.

We can discuss about developing your idea : more often that not new business opportunities occur from changes

in industry, social or economic environments.

New business ventures can arise due to a variety of factors, including number one, external causes

to voluntary self-employment and third is hobbies.

So what are the external causes?

Number one is.

Changes in industry stimulated by advancing technology and new knowledge spur new poducts

and services : A good example of this, the rapid changes we have witnessed in information and communication

technologies like ICT. over the last decade, these rapid changes have spun off many business opportunities.

For example, increased internet speed and bandwidth have created opportunities for the provision of

online courses for conventional education and lifelong learning and training.

So increased access to more affordable computer equipment and software has created opportunities for

provision of technical support services at varying levels and not only to corporations but

also to individuals that use computers in their homes, etc..

And second point accidental discovery.

Sometimes our personal stumbles upon an idea instead of a deliberately trying to invent a new product.

This was the case of the Post-It product of the 3M company and third one is changing perceptions.

There are times when the social environment is an element of new venture creations.

For example, the emphasis on healthy living in the 1990s created the opportunity for the creation of

Full-Service Health clubs.

And number fouth is economic change.

Often this types of change creates opportunities that arise out of necessity.

For example, the current energy crisis is opening up the market to the new ideas for alternative sources

of energy.

In turn, car manufacturers will design different types of engines are to sustain different energy sources,

which may even lead to a new car, parts and accessories industry and fifthe one is

political chanage : often governments create new policies are pass

New laws that create great opportunities for entrepreneurs to start a new business.

For example, the requirements for personal development requirements for certain professions so may be

mandated by government.

That means training and education companies may be able to create professional development programs

that are recognised by government to support their promising development policies and as well as the

other examples include The changes in security requirements or registration may open up new business

for security services.

Implementation of the new food regulations may provide opportunity for new business such as transportation

and the storage and quality assurance and the number three years of changes in the tax rules and may

open businesses to support the additional bookkeeping.

or audit requirements and fourth one is infrastructure improvements and development may provide

opportunities for the creation of construction services businesses such as excavation services,

carpentry services, electrical services, etc. And next one is to discuss about the voluntary self-employment.

It is becoming more and more common for individuals with prior work experience to creating new ventures.

Frequently, workers perceive ways to modify a product or improve service, which leads them into starting

a new venture.

This new venture can be within the existing business or can be spun off into a new business venture.

Individuals are apt to start their own business and as they gain more knowledge and experience of from

their years of experience, ployment in a formal workspace and a person can deside to become a

self-employed manufacturer.

By obtaining the right to manufacturing a product based on a patent and individual observing scant competition

afforded to a particular business can go out and to duplicate the same businesses as long as there is a

underserviced market for the product or services.

And individuals may also help grow on existing family businesses as they have been serving and serving

the needs of an established market or community for a long period of time and they wish to provide

new or additional services or products, and the next one is we will discuss about hobbies.

Hobbies can also turn into business ventures, for example, a love of horses or animals can lead someone

to an opportunity of runing a riding school or providing a boarding facility for horses.

And next one is the factors that influence the businesses, and now that they have explored many of

the concepts impacting a start-up business and are discussed the reasons for getting into business,

you should examine factors that can influence the type of business you may wish to create.

There are many factors, some of them positive and others negative, we shall select a few to discuss.

than as you read a further, we expect you to come come out with some of your own.

According to Kotler, and Armstrong have come up with the following factors that impact business start

up and success.

Number one is for cultural factors, and second one is economic factors, and third one is political

factors and fourth one as environmental factors.

How do these factors impact the business?

Let's examine each one in turn, so fast.

One is we need to discuss about the cultural factors the culture of a country refers to customary practices

and beliefs that people uphold. Culture is made up of institutions and other forces that affects society's

basic values and perceptions, preferences and behaviors, according to Jarvis(2002).

And the entrepreneur should remember that people grow up in a particular society that shapes their basic

beliefs.

Culture affects the way consumers think and use certain products. As an example.

In some culture, it is not a proper for a woman to deal with the public example of selling goods or

wares.

This is a crucial factor for business purposes.

Firstly, should the mother of a family identify a business idea that is likely to bring income to the

family?

She will not be able to operate the business because of cultural constraints.

Secondly, should she, neverthless, go ahead and start a business that might lead to conflicts in the family

and in a turn that might cause the family to break up, and not to mention that if customers don't

buy her wares, her business will fail.

There are also cultural celebrations, religious celebrations, local historical sites and demonstration

of local music, cooking, dance and other traditions that may offer opportunities to support different

cultural activities that occur with the local community or region.

One example could be the creation of a tour guiding business that specializes in cultural events and

cultural religious sites, and we need to discuss about economic factors and the economic of a country

refers to the activities in which people are employed to generate revenue.

Various economic factors impact a country's ability to attract or encourage the creation of

new businesses. A country's industrial, economic and banking structure influences the products and

services needed by businesses and individuals.

The stability and ideally the growth of a country's industrial base impacts income levels and employment

levels.

If a country displays a solid industrial base, then the climate is attractive for business creation

and development.

For example, the economic of Botswana is based on diamonds and the beef industry, which makes it attractive

for business and investment in the processing of these raw materials.

In subsistence economics found in the developing world the vast majority of people in

agricultural agricultural related businesses.

Individuals grow and consume most of their output and barter the rest for simple goods and services

in a subsistence economies there are fewer market opportunities for the creation of a new business.

In addition, the potential to attract investment is more difficult.

For example, the economy of all the small islands in the Caribbean depends heavily on tourism and agricultural

production, especially sugar production, making it less attractive for industrial or high technology

business investment.

But as the development countries grow and the income levels of the citizen

increases there becomes greater demand for new goods and services.

This increasing demand will result in the creation of a number of small businesses to service

the growing economy and think about the China that thirty years ago, it was a subsistence economy.

Today it still relies on agriculture, but its economy has diversified and large

Number of small businesses spring up every day to support the growing middle class and their thirst

for new products and services.

Next one is political factors: Nations differ in their political and the legal approaches to business

and the economy, political and legislative factors need to be considered.

When deciding whether to set up a business or expand an existing business and government.

bureaucracy is an example. This referes to the way a government facilities or constrains business

registration and operation.

If, as an example, only citizens are allowed to operate certain types of business, that means non-citizens

will find it difficult to start a business even though they have the capital to do so.

And the political instability is another factor that an entrepreneur needs to consider before deciding

to set up a small business.

A country is said to be politically unstable if there is a violence or when there is no rule of

law. Unstable political situations.

discourage business. Investors and business owners may not feel safe to set up a business where there

is no assurance of security or safety.

And some of the legislative guidance entrepreneurs should become familiar with before they establish

a small business.

What are the laws and guidelines

that govern

the establishment and growth of a small business ? and what is the impact of the tax structure on the

operation of a small business ? and what type of fees and reporting mechanism is required to operate a small

business and community or regional guidelines or by-laws that govern the operations of a small business

and or home-based business, and the legal framework that is required to establish a small business.

And the next one, we noted that because of all the environmental factors and environmental factors

need to be considered by the fledging entrepreneur.

Environmental factors include a business location, the natural environment, environmental regulations

and international laws governing the distribution of raw materials and finished products.

The physical environment us to the place where yous business will be situated.

Depending on the type of business you select.

The location can impact the success or failure of the business.

And if we were to locate the enterprise, say a hotel, in a place where there are bad roads, it

is most likely that customers would not be able to reach you.

Or if you are restaurant located off the off the main tourist area, you may not get as much business.

on the other hand, if you are a consulting or repair business that goes to the customer's location, then

where you establish your office, it is not as important access to natural resources is an

important environmental factor to consider.

These are needed as inputs by entrepreneurs. business persons should, therefore, be aware of trends in the

natural environment.

For example, in many countries, shortages of raw materials can affect the setting up businesses. procuring

and using raw materials that are either on the endangered species list or are forbidden by legislation

for the harvesting and distribution of such materials.

For example, the mining and distribution of diamonds in certain parts of Africa is forbidden by international

laws and treaties because they are considered blood diamons and the export of different types of

rare animals is also forbidden by international law. An understanding and application of environmental

regulations

is also important to a new business.

Air pollution chocks many of the world's cities.

While water shortage are already a big problem in many parts of the world, as a new business you need

to consider How do I get power?

Why do I get power?

How do you dispose of waste?

And what materials are considered hazardous to humans and the environment. protecting your idea:

Next one is we will discuss about the topic is protecting your area.

Some business ideas, like new inventions, new processes, product logos and unique product names may need.

the protection of law so that others cannot poach your idea and use it for their financial gain.

Your ideas are considered your intellectual property; but it can only be considered intellectual

property if you have recorded in either a written, audio or video format.

If you have a great business idea and tell a number of other potential entrepreneurs in informal

discussions about the idea they may take it and turn it into a product or service.

The process of communicating verbally to others does not necessarily protect your intellectual property.

You must describe it in some legal form. These legal forms include patents and trademarks.

These usually provide protection for the owners of a product or process.

Other ideas usually in a written, visual or multimedia format are protected by national and international

copyright laws.

Be careful about who you tell about your business idea. Make sure you trust them. To

protect your legal writes ensure you place your idea in writing.

Where appropriate register the idea as a patent or trademark. Ensure you apply copyright to

all of your written or visual materials. If necessary

have the written description of your idea notarized.

Now let’s explore each of these legal concepts. Patent:

A patent is a set of exclusive rights granted by a state to a person

(the patentee, usually the inventor) for a fixed period of time in exchange for the regulated, public

disclosure of certain details of a device,

method, process or composition of matter (substance) known as an invention, which is new, inventive, and useful or

industrially applicable. The rights granted to an inventor of a product or process exclude others

from being able to make, use, and sell or import/export the product or process. You will want to

to apply for a patent.

when you create a product or a process that you want to market exclusively, without competition from

other companies and trademarks, Trademarks are names or symbols used in trade that are subject to regulation

by government.

So Trademarks and service marks may be registered for a specified term.

You apply to register a trademark when you create a uniquely identifiable name or

symbol that will represent your products or services.

And the Copyright is a set of exclusive rights regulating the use of a particular expression

of an idea or information.

At its most general, it is literally "the right to copy" an original creation. In most cases,

these rights are of limited duration.. and identifying potential business ideas.

In order to identify opportunities for business start‐ups in your community you must consider what

the market needs. You can start your market analysis by completing an environmental scan of your

community.

Before you can consider the creation of a new business you must be aware of the business environment

that you have proposed

business will be operating in. You need to consider a number of factors.

These include: • What businesses already exist in my region? • What type of goods and services do they provide?

and Who are the clients (market) buying these goods and services?

Are all of the market needs being met by the existing businesses?

Are there goods and services that the market members may purchase if they were available?

Do I have any of the skills or abilities to offer goods and services that could potentially be wanted

by members of the market?

And What competition already exists in the marketplace for the goods and services that I could potentially

offer?

These questions and others should be considered as you explore the business opportunity you wish to pursue.

OK and in a less formal way.

you may also want to discuss your ideas with your friends and/or relatives.

You should share your ideas

and hear their ideas

This is called a "brainstorming" Some simple brainstorming techniques include: Produce a list

of pros and cons for your new business idea.

Second, one is Complete a simple SWOT analysis, where you list and weigh the strengths and opportunities

of the business versus the weaknesses and threats to your potential business.

More about SWOT analysis will be provided later in the programme. Identify the future trends

in the market by reviewing what the potential customers

want now and will want in the future.

And Can you identify a gap in what currently is available versus what may be popular in the future?

Is there a business that can be reated to fill the gap?

Our next one, as we need to discuss about analyzing the competition, As you develop ideas for your

potential business, you also need to start thinking about who your potential competitors

may be. Let’s examine how to assess your competition.

A simple competitor’s analysis should begin with a search of similar businesses in the local area. You

can do this through a phone book search and/or a Google search to determine who is supporting

same market. You should note the following about your potential competition.

Number one is Who or what is the principle market serviced by your potential competitors?

And second one is Do they sell services

or products that overlap into your potential business ideas?

And a third one is How do they advertise and reach out to their potential clients?

How successful does the competition appear to be?

What do they charge for their products and services? and so on is what type of consumers and customer

support do they provide to their current and future clients ?

Is there still room in the market place for another company that offers similar products and services?

And in some cases your idea may so unique that there may be very little competition.

This is the ideal.

So, But in reality every new business has potential competitors. They

may already be providing the products and services you are proposing or they may quickly move

into the same type of offerings if they see profit potential.

OK, we are going to discuss the summary of the process, and You have learned how to develop your business

ideas.

considering factors that influence your business, identifying new business ideas and how to legally

protect your business ideas. You have also covered material on developing your business ideas

and you have studied factors that influence business development and ownership.

In the next topic, you will expand

you will learn about what is involved in expanding your business idea into a business concept.

Thank you.

Once again, thank you so much.

lectur 4 : Business Concepts and New Business Ventures

OK, next topic we will discuss now.

Business concepts and the new business ventures.

So topic introduction about that Systematically exploring a business opportunity will help you ensure

the idea grows into a business concept then flowers into business plan and eventually results in

the implementation of a successful business.

But how do we go from a business idea to business concept?

This topic is geared towards discussing the processes involved in moving from your somewhat

fluid business idea to a solid business concept now.

And what about the topic objectives: upon completion of this lesson and you will be able to:

Distinguish between business idea and business concept Discuss how business idea is transformed

into a business concept. Explain the processes involved in developing a business concept. OK and business

idea versus business concept.

Many individuals believe they have a good business idea. The think that no one else has thought about

that.

it would make a great business opportunity. This initial idea is the first spark of entrepreneurship.

But most do not go beyond their original business idea. They muse about it for years, but they

never put any energy into exploring and developing the idea further

As a future entrepreneur you need to grow your idea. You need to put the time and in some cases

money into creating a solid business concept that you can share with others.

A business concept describes the business you wish to create, the products and services you wish to

provide, the market it serves and the potential competition facing the proposed business.

The creation of a business concept is the first step in creating an effective business plan. Converting

the idea into a concept requires research and exploration of the idea.

A business concept is the initial analysis of the idea.

It explores the potential to create a market with effective and ongoing demand for your products and

services.

It helps answer the question, “Are there potential customers out there who are willing to pay for my service

or product?"

A viable business concept needs to determine if there is sufficient revenue potential to

ensure profitability over a specific period of time. A business concept provides the following types of detail

about the proposed products and services and potential clients.

A description of the products or services,

in other words, what it actually is or does. If necessary, provide a technical description and

A description of the potential customer and the benefits that the products or service

will bring to the customer. Benefits sell your product or service by conveying more emotional than

practical details—by showing customers “what’s in it for them.”

The uniqueness of the product or service, or how it is differentiated from other, similar products

or services. Uniqueness convinces customers that the only source of these desirable features

and benefits is your product or service.

You may also distribute your product or service to the market in a unique way. and sales channels.

that is, to whom, where, for how much, and how the product or service will be sold.

The same product or service may be brought to market through several different distribution channels.

of These different distribution channels have a profound effect upon all aspects of the business. and

COMPONENTS OF A BUSINESS CONCEPT Producing a business concept document is a critical

task.

whether starting a company or seeking to improve an existing venture. You should be able to summarize

your business concept in a document of two or three pages.

The first step in developing your business concept is to consider and answer the following questions:

WHAT does the product or service do? HOW is it different from other products or services?

And WHO will buy it?

And actually, WHY will they buy it?

It means a price and convenience provides a sense of safety, security or well-being and better than

what is currently available and pleasurable experience on a uses new technology.

And WHERE will it be sold? and Geographic location of business and customers.

And WHEN will it be ready to be sold? concept, start-up initial operations phace and HOW

will it be promoted and sold?

Will it be sold or marketed online?

So After developing the business concept, you then test the business concept for feasibility

prior to providing a business plan.

It is common for the initial business concept statement to change during feasibility testing and the

writing of the business plan.

Okay, on the next, we will discuss about the transforming business idea into a business concept and business

idea is transformed when the future entrepreneur puts pen to paper (or keyboard to screen) and

does a systematic analysis of the business potential of the proposed idea.

business idea is often found very quickly

However, individuals who have tried to turn a simple business idea into a workable business concept

or solution and then a viable venture

will know that a business idea and a successful business venture are worlds apart. In developing a business

concept.

it is necessary to first clarify the business idea.

And what is it?

Developing a concept, and ultimately a business plan for activating the business concept, is like

imagining the venture five years into the future.

But this process of imagination is based on research, data and facts rather than dreams.

While the business concept statement, which is short and concise, is the first step in creating

a business plan it is also the corner stone for the entire venture. If the business concept

Statement is unclear.

it is highly likely that the entire business idea will be equally as fuzzy. Coming up with a practical

business concept often requires more than just a brainwave.

Budding entrepreneurs can get so excited about getting a bright business

idea – and imagining the possibilities – that they forget to take a practical approach. So before deciding to launch yourself

into the world of business.

here are some guidelines to consider on how to develop a business concept.

Actually, some of the African report recommends to you to consider the following steps in transforming

your business idea Identify the marketplace, begin small, know who you are and research the market

and test the business idea.

So what about to begin to identify the marketplace?

It’s about perceiving a situation and identifying where you can make a contribution.

Take notice of the small businesses in your local area.

Consider which businesses are growing and which are slowing down. Examine the business trends

and determine what services your market still needs that are not being met.

And second one is begin small.

Your entrepreneurial idea does not need to be extravagant or even excellent.

Some of the best business ideas are remarkably simple. Entrepreneurship is sometimes more

about harnessing skills that you already have and tapping into a market that already exists, rather than

re-inventing the wheel.

. If your business idea fulfills a need, there’s more chance it will be effective. and third one is Know

who you are

Consider yourself as a central part of the business idea. To really grow a business

business idea into a business concept it is necessary to bear your personality traits and desires in mind.

If you think of a business concept that could succeed but can’t imagine yourself in that line

of business, think again. Do something that you enjoy and that suits your value system.

And fourth one is research the market.

Research is an invaluable means of determining the opportunities present for your business idea.

Through accessing information you will get a better sense of your idea and a gain a better understanding

of its potential.

You can gather information from so many sources:

Number one is Do online research number two is find out from a government agency or an NGO.

And third one is ask people currently in the industry and fouth one is brainstorm it.

Discussing your idea with others may fuel other ideas that may eventually lead to developing a business

concept.

OK, the fifth one is Test the business idea.

Before developing the concept, try and test your idea in the marketplace.

This may be a good way to check if you’re on the right track.

Remember great ideas come with a great plan. With a well thought out business idea you have

a better chance of developing a business concept and becoming a successful entrepreneur.

Okay.

And next one we will discuss about developing a business concept.

By considering the questions above you have made a start on developing your business concept.

You may still feel unsure about some of your answers but for

now you have started to ask the right questions of yourself. You will gain more confidence in your business

concept as you read further into the course and complete some additional activities.

An important aspect of successful business concept development is to appropriately analyze your business

concept.

The analysis process should help you decide whether to move forward with the business planning process, collect

more data about the potential business or drop the idea and explore other opportunities

like that.

The five steps below help outline a simple process you can follow.

The steps are not a rigid structure to follow. Rather they identify issues you need to address them

and when to address them. Following the steps below does not guarantee business success.

However, it can greatly increase your chances of success.

Step one Initial idea Exploration, identification and assessment from an advisory body you develop

form an informal group of advisors that can help you turn your idea into a

viable business concept. When forming an advisory body

body you should bring together professionals who have the business concept development skills needed to

investigate the potential business idea and carry through

with formulation of a viable business concept. You may want to include an accountant,

a lawyer, your banker, an experienced entrepreneur, potential customers and others with experience

in the industry or economic sector.

You know this to start a business and solidify business ideas means to define your business idea and

describe the why it has

merit. Your idea may involve

filling an unmet need in the marketplace with a new product, providing an existing

product in a new form, producing a product better or cheaper than competitors, or other ways in which

value can be added. Remember, an idea is only viable if people are willing to pay you for what

it provides.

You must allow your group advisors time to provide input into your business idea.

And that's to always Identify and investigate potential business models to implement and manage the

business.

Idea(s) and A business model describes how the business will operate. A business model is a logical

assemblage of the essential business elements starting with raw materials procurement and ending

with the sale of the final product, and all the stages in between.

Some of the examples of business models include Number one is to static business and virtual businesses

and direct sales model and franchise operation and wholesale versus retail operation and partnership

with others and formal investigation.

You may want to conduct a formal assessment such as a pre‐feasibility study or a marketing study

of the idea and various scenarios for implementing the idea and supporting business models.

This may involve using consultants to investigate various aspects of the idea.

It may involve eliminating additional scenarios/models or identifying new ones.

Step two We need to follow up the idea or concept deliberation and assessment and further refine the

business scenario and model.

Clearly outline and describe your proposed business model.

Provide a list of scenarios for providing the services or products

you wish to provide. Conduct feasibility study and analyze the results – Conduct a feasibility

study of the proposed business model and scenarios.

A feasibility study should include an assessment of the market, operational, technical, managerial

and financial aspects of your business idea.

These factors will feed into the economic assessment of your idea.

And When you have produced a feasibility report analyze the results. Only after you

have accepted the study conclusions as being complete and comprehensive can you move to Step

three and Further refine the idea and scenario/model:

so, Before you proceed, you may see the need to refine the business idea based on the feasibility study

recommendations or findings.

. It is not uncommon for the feasibility study to uncover new issues that need to be investigated.

so Modify your business scenario and model to align with the findings in the study.

And Step three Go/No-Go decision.

At this stage of the process you will have collected sufficient information to determine if the business

as an idea has merit and can, given the right resources and management, succeed as a new business.

Once you start down the path of creating a business, it is difficult to turn back.

If you have unresolved doubts or reservations about the idea, you should not proceed.

That is why it is important to have an open, honest and thorough discussion when making this decision when

making this decision now and next step for business plan Preparation.

If you decide to proceed with your business idea/concept, you will need to create a business plan.

A business plan is an outline or blueprint of how you will implement, manage and grow your

business.

If you conducted a feasibility study, it will provide some of the information need to support the creation

of your business plan. Creation of a business

plan is a time consuming and detailed task which may require a number of different professionals

to help you and guide you.

You will certainly want to consult with and seek the input of your original advisory group.

You will need to do further analysis of your market and your competition.

You will need to produce strategic business goals and provide a detailed financial plan to support

the growth of the business.

for the first three years or more of operation. Only after you have done your detailed

planning can you implement your business plan. Step 5 – Business Implementation and Operations

Now that you must implement your business plan and manage your business in accordance

with the guidance provided in the plan.

Entrepreneurs often forget that once the business is created, it takes constant attention and

effective management for it to remain healthy and viable.

Operating and growing a business is very different than starting a business.

It requires a different set of skills. So the people who create the business may not be the best

people to manage the business.

So, according to Churchill &Lewis (1983) suggest that all start‐up businesses go through five stages

of growth.Stage 1 – Existence: At the Existence Stage you will struggle to kick start your plan.

and your organization will be simple and very flat.

You will need to find the money, people and resources you need to move forward.

Churchill &Lewis (1983) note that you should be asking the flowing questions: Can we get enough customers

deliver our products and provide services well enough to become a viable business? Can we expand

from that

one key customer or pilot production process to a much broader sales base?

Do we have enough cash to cover the considerable cash demands of this startup phase?

And Stage two is a survival : In the survival stage your business has managed to overcome all of the

initial start‐up issues and proven that your idea can blossom into a viable business.

You know, Your business is still very small, although you may have some full or part‐time employees.

The key at this stage is to survive and grow.

So, according to Churchill &Lewis (1983) indicate that the key questions at this stage are: • In the short run

can we generate enough cash to break even and to cover the repair or replacement of our capital assets

as they wear out? • Can we, at a minimum, generate enough cash flow to stay in business and to finance

growth to size that is sufficiently large,

given our industry and market niche,

to earn an economic return on our assets and labour? Stage 3 – Success: At this stage the

company has proven it is a successful entity.

It has grown into a moderate size business that probably has a number of supervisors/managers

and employees. The company has a solid and consistent customer base.

It is a stable and profitable. At this stage .

the entrepreneur must decide whether to keep the company at the size it is or to expand

it and grow it even bigger.

So Alternatively the owners can decide to sell the company and let others grow it. and the next

one is a stage four Take-off.

: As the company takes off the issues faced by an entrepreneur and his senior managers

is how to manage rapid growth and how to finance the growth.

The key is to hire experienced managers to assist in the growth and to secure a reliable source of finances

/revenues to finance growth

You are now seeking investors and may be considering going public to finance the growth. and the next stage is

maturity.

Once you have achieved your strategic business goals and achieved financial success you must

decide how to stabilize the company and ensure its long term viability.

The company is now somewhat hierarchical in nature and is owned by investors.

At this stage the company and its owners must not stop their innovation or risk taking.

Even a mature company must continue to evolve and to embrace the changing needs of their customers.

Okay, next we need to discuss the topic SUMMARY What have you learned in this specific topic?

In this topic, you learned how a business idea can be developed into a business concept. You

learned that in order for a business to be successful it needs to have a sound and viable business

concept one that requires a sound revenue model, with one objective ‐ to be profitable. The business

concept takes

into consideration the seven W’s of which when

answered correctly will give you a clear indication of whether your business idea will

stand or sink.

If you remember, the business concept is a statement that proves it is possible

possible to create a market with effective demand, and that there are customers willing to pay for the

goods or services.

You also explored the five steps you will want to follow for taking an idea and making a viable business

from it, and these steps will not guarantee success.

However, they will increase your odds of success.

So In the business concept development stage the refined business idea is tested to determine consumer acceptance

without manufacturing it. One method of

testing is the conversational interview in which respondents are exposed to statements that reflect

attributes of the product. Features, price, and promotion should be evaluated in comparison to major

competitors to indicate deficiencies or benefits

OK, thank you so much and thank you all.

Autoscroll

Course content

Overview

Q&AQuestions and answers

Notes

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Learning tools

lectur 5 :

Okay.

Next one is we are going to discuss about the final season of business planning.

So topic introduction.

Now that you have an understanding of what constitutes a business model and you need to prepare a business

plan, in this section, we will review the contents of the business plan and recommend the process

of creating one.

So topic objectives.

Uh, upon completion of this topic, you should be able to define business plan and outline the contents

of a business plan and describe the steps in producing a business plan.

Distinguish between a business proposal and a business plan.

So everything we will discuss now.

So what is a business plan?

A business plan is a document that describes a detail how you propose to implement and manage your business

from the stage one start up to at least the stage three success.

So business plan builds upon the results of the initial analysis of your business idea and the findings

of an observation described in a formal business proposal.

It describes how you move from what you propose to how you start and grow your business, and why.

Spend the time and effort creating a business plan.

It's not your business idea and a proposal.

Good enough?

Good question, but it is no different than building a house.

You can have a concept of what your house will look like, the number of rooms it will have, and the

general idea of how it will be built.

So.

But what you need before you can begin construction is a detailed set of blueprints to guide the construction.

So without blueprints, the house may not look like your initial idea and once envisioned.

So some of the benefits of creating a formal plan for your business are.

Provides a multi-year strategic direction for the business.

Sets out a clear path to your short tum and long tum business goals.

Allows you to anticipate future strengths, weaknesses, opportunities, and threats to your business

and creating strategies to counter them.

It provides a framework for resource and financial controls and becomes a useful tool for communicating

with bankers, other lenders, suppliers, and customers to demonstrate that you have a solid plan and

therefore should be supported.

So what is a business plan outline?

A typical business plan should include the following sections.

Some of the information will have already have been captured during the creation of your business idea,

business outline or proposal preparation and business model.

Consideration.

Number one is executive summary.

And the section uh, you should provide an overview of the most important selling points of your business

idea.

Keep it succinct and to the point.

A good way to think about is that this may be the only part of the whole plan that gets read, so it

should sell your business.

And second one is company description.

Describe your business idea in this section.

Elaborate on what industry and what product services your business will provide.

Include the legal form of your business entity, sole proprietorship or partnership or corporation,

etc. the business hours and the sustainability of the business if appropriate.

You may also include the location of your planned business.

Sometimes the location of the business may be the key to its success.

And third one is a strategic plan.

In this section, detail the vision, mission and values and strategies you will follow to attain your

business goals and go over what you want to do and where you want to go.

And how will we get there.

Produce measurable and observable strategic goals.

And fourth one is market analysis.

Describe the results of your market analysis.

Explain the industry that you are selling into.

Include the target markets and description of any specific customers.

Explain your marketing strategies and plans, including how you will deliver your goods or service to

your target market, and explain your pricing strategies also and competitive analysis.

You will find and need to explain who your competitors are and how you can a competitive advantage and

explain your competition and compare your business idea to them and impact of technology.

Provide an overview of the technology you will use, if any, and how new developments in technology

may or may not affect your business.

And seventh one is the business operations.

In this section, explain how you will conduct your business focus and what makes you better than the

competition.

As far as operations.

And eighth one is management and ownership.

This is where you should outline the key personnel that will be a part of your business.

Explain the skills, education and what they bring to the company.

And ninth one is organizational and personnel.

So provide an explanation of your personal needs.

In this section, state how many employees you will need and how much you will pay them, and how they

will pay be paid, and also explain the personal organizational structure and make sure you go over

the process for personal recruiting, selection, evaluation and training.

And the 10th one is capital and usage.

In this section, you must detail what capital you will need, if only for startup or operation and

how long, and the repayment strategies.

Start with how much you will need to start, followed by a realistic projection of needs.

Include all resources as well as the application of cash within the enterprise, highlighting how that

cash will be utilized.

And I want to.

One is financial information.

In this section you make projections for future gains and losses.

You should list them quarterly until the business breaks.

Even then, annual reports are fine if you're submitting a plan for a few years and 12th one is up and.

Basis.

So apprentices, make sure you include all documents used to substantiate your business idea.

Here include a resume, references, Swot analysis, competitive analysis, copies of studies done,

or anything else to back up information in the business plan.

Okay, what about the steps in producing a business plan?

Many of the steps in producing a business plan may have already been completed.

Much of the data have been gathered as you grow your business idea.

According to Abrams, in her book, the successful businessman identifies the five key steps in the

production of a business plan.

Number one is layout or define your basic business concept.

You have a business plan idea that you can turn into some form of a business outline.

So describe your proposed products and services.

And second one is gather data on the feasibility and specific on your concept.

This means conducting a market analysis and competitor analysis.

And third one is focus on defining your concept based on the data compiled and produced a more detailed

business proposal that includes a description of the market and how to gain the competitive edge and

define your proposal, products and services, and other information your identified during your data

analysis.

So produce pricing model or strategies.

And fourth one is outline the specific of your business because make sure your address your address

the nine building blocks of a business model.

Identify unique customer services or support that you need to provide to ensure business success and

customer satisfaction.

So identify your marketing strategies.

Complete your strategic plan with the strategic business goals.

And fifth one is put your plan into a compelling market and filled out the details of your business

into your business plan tailored for your unique business entity.

Provide the financial data needed to convince lenders and investors about the soundness of your plan.

And sixth one is share the draft plan with others.

Have them consider the risks and potential of success of the business.

Address any risk they that they identify.

Okay.

Topic summary this topic summary business plan is more detailed than a business idea.

Outline or proposal.

A business plan covers your business structure, your products and services, your market research and

marketing strategy, and your complete budget and financial projections for up to five years.

It is a tool that will guide your business operations for the first 3 to 5 years of your business growth.

Thank you once again.

Thank you all.

Assignment 1: Writing your business plan for startup business

This business plan should deliver the importance of small business start-ups on the growth of the social economy. (100-200 words)

References:

• https://www.udemy.com/course/entrepreneruship-and-innovation-start-your-own-business/learn/lecture/30622330#content
  Created:: 2024-01-18 14:38