2. OBJECTIVES
• Explain how to assess your own potential as a small
business owner;
• Identify opportunities for small business development;
• Evaluate whether the opportunity is likely to be successful;
• Understand the concept of a feasibility study;
• Prepare a plan for each aspect such as marketing,
production, finance and staffing of the business;
• Explain the advantages and disadvantages of starting your
own business;
• Identify the managerial skills you will need to start your own
business;
• Understand how to obtain start-up cost savings.
3. PERSONALITY TRAITS
• The ability to recognise • Leadership skills;
and exploit opportunities; • A desire to achieve;
• Resourcefulness; • hard workers;
• Creativity; • Nurturing quality;
• Vision; • Accepting responsibility;
• Independent thought; • Reward-oriented;
• Energy; • Optimistic;
• Optimism; • Excellence-oriented;
• Innovativeness; • Good organisers;
• Calculated risk taking; • Money-oriented.
4. CHARACTERISTICS
• Commitment • Effective time
management
• Energy
• Ability to identify
• Need to Achieve
opportunities
• Tolerance for stress
• Make informed
• Decisiveness decisions
• Ability to deal with • Ability to manage risk
failure
5. HARD AND SOFT SKILLS
A “hard” skill is a technical or
administrative skill related to the core
business of the operation – not one
that is interpersonal.). These skills are
specific to a given context and
typically produce an immediate visible
result.
6. HARD AND SOFT SKILLS
“Soft” skills are a cluster of
personal attributes, which
enhance interactions with others,
and are learned over time; often
referred to as your emotional
intelligence (EQ).
7. EMOTIONAL INTELLIGENCE FOR
SMALL BUSINESS OWNERS
• The ability to perceive, • The ability to listen to
recognise, understand and others, to have empathy
react to the feelings of with them and to
yourself and those of communicate effectively in
others (emotional terms of emotions and
awareness). thoughts.
• The ability to distinguish • To use the information in
between various feelings directing your thoughts
and to name them and actions so that you
(emotional literacy). live effectively, are
• The ability to express and motivated and have a goal
control your feelings in mind (relation between
appropriately (emotional thoughts, feelings and
control). behaviour).
11. ASSESS OWN POTENTIAL
Need to ask yourself a series of
questions about:-
• Personal objectives
• Personal resources
• Clues from the past
• Your specialty
14. GENERATION OF IDEAS
• From skills, expertise and attitude
• From common needs
• From existing problems
• From everyday problems
• From other sources
15. EVALUATING OPPORTUNITIES
• A good opportunity will be:-
• Attractive
• Durable
• Timely
• Anchored in a product or service
USE INTERNAL & EXTERNAL
EVALUATION OF OPPORTUNITIES
16. INTERNAL
Will only be successful if owner has
internal capabilities to take opportunity
from idea to business
Need to assess:-
• Resources and capabilities
• Core competencies
18. GENERAL
5 SUB ENVIRONMENTS
• Political & legal environment
• Social cultural environment
• Macroeconomic environment
• Global environment
• Technological environment
CHALLENGE TO BUSINESS OWNER
BUT ARE UNCONTROLLABLE
19. INDUSTRY
Direct effect to the start up business
Porter 5 competitive forces
• Threat of new competitors
• Threat of substitute products or services
• Intensity of rivalry among existing
competitors
• Bargaining power of suppliers
• Bargaining power of buyers
P52/53 module manual
20. FEASIBILITY ANALYSIS
Feasibility:-
.. The extent to which an idea is
viable and realistic and the extent
to which the small business owner
is aware of internal and external
forces that could affect his/her
business
21. FEASIBILITY STUDY
Involves meticulous investigation of 5
primary areas:-
• The overall business idea
• The product/service
• The industry and market
• Financial projections (profitability)
• The plan for future action
22. FEASIBITY CHECKLIST
Must take into consideration the following important
factors:-
• Size of market
• Growth potential of market
• Products and services the market needs
• Why the market wants these products and services
• How often these customers buy these products and
services
• What the geographic distribution of the market is
• What price the market is willing to pay
• What market share can be expected
• How to communicate effectively with the market
23. INDIVIDUAL ACTIVITY
ICE TASK 3
Prepare a feasibility plan as per the template
on page 54/55/56/57 for your proposed
business. You will need to do some in depth
research in order to specifically answer the
feasibility checklist questions on p57 of the
module manual. This will enable you to
prepare a more accurate and detailed study.
Plan must be typewritten. Hand in date: 4th
September 2012
24. ASSESSMENT OF OPPORTUNITY
Goal of feasibility study is to systematically assess the
opportunity to determine if it can be brought to market
profitably
KEY POINTS
• The idea cannot be economically made into a
product or service
• The product and/or service works but does not
appeal to a large enough market to be viable
• The product and/or service works, there is a
viable market, but resources are not sufficient or
obtainable to make the idea into a business
25. BUSINESS PLANS
ARE NECESSARY!!!!!!!
• To raise finance as and when necessary (to
start, buy or expand)
• To encourage assistance, to get a lease, to
open an account etc.
• To improve performance (and likelihood of
success) through increased knowledge and
understanding – use to assess performance
against plan, evaluate strengths and
weaknesses etc.
26. SCOPE OF BUSINESS PLAN
• Contents
• Exec Summary
• Vision & Mission
• Company Overview
• Product or Service
• Marketing Plan
• Management Plan
• Operating Plan
• Financial Plan
27. GROUP EXERCISE
Get into groups of 2
Take the section headings from previous slide
and write bullet points on each section on what
should be included in it . DO NOT REFER TO
YOUR MODULE MANUAL!
28. ADVANTAGES OF STARTING YOUR
OWN BUSINESS
• Opportunity to start fresh
• Start with latest technology
• Be able to provide products or services
not currently available in the market
place
• Owner can determine size of business
29. DISADVANTAGES OF STARTING
YOUR OWN BUSINESS
• No known name in market place
• Time needed to establish a positive
cashflow
• May be difficult to obtain initial funding –
no assets or reputation
• Recruitment of experienced staff may be
difficult
31. CONCEPTUAL
Ability to see small business as a whole
• Recognise how functions are interdependent
• Visualise relationship of the small business to
the industry and community it is operating in
• Understand the effects of political, economic
and social forces of the nation on the small
business
32. TECHNICAL
• Implies an understanding and proficiency
in a specific kind of activity
• Involves methods, processes,
procedures or techniques
• Specialist knowledge, analytical ability
and knowledge of use of specialist tools
34. START UP COST SAVINGS
5 AREAS IN THE START UP PROCESS
WHERE SAVINGS ARE POSSIBLE:-
• Franchise company fees
• Turnkey packages
• Construction costs
• Equipment signs and fixtures
• Lease terms
40. Animated or Static?
Change Between Static and
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You can change between static
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For example this slide uses
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46. Table Page Geographic Q1 Q2 Q3 Q4
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TOTALS 1600 2205 1333 2732
47. Comparison Table Layout
Quarter North Asia Europe Austr Quarter North Asia Europe Austra
America alia America lia
Q1 2009 123 34 45 10 Q1 2009 123 34 45 10
Q2 2009 134 35 44 12 Q2 2009 134 35 44 12
Q3 2009 150 45 50 14 Q3 2009 150 45 50 14
Q4 2009 201 55 60 18 Q4 2009 201 55 60 18
Q1 2010 175 44 47 13 Q1 2010 175 44 47 13
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