3. TRENDS IN ECONOMIC
DEVELOPMENT
IMPORTANCE OF HUMAN RESOURCES
TECHNOLOGY AS A RESOURCE
HIGH DEGREE OF COMPETITION
IMPORTANCE OF INNOVATION
GOVERNMENT AS STIMULATOR
ENTREPRENEURIAL/INTRAPRENEURIAL
DEVELOPMENT
QUALITY AS A GOAL
INNOVATIVE CAPITAL FORMATION
SUPREMACY OF THE CUSTOMER
6. WHO/WHAT IS AN ENTREPRENEUR
“AN INDIVIDUAL WHO BEARS THE RISK OF
OPERATING A BUSINESS IN THE FACE OF
UNCERTAINTY ABOUT FUTURE CONDITIONS”
ENCYCLOPAEDIA BRITTANICA
7. “AN ENTREPRENEUR IN AN ADVANCED ECONOMY IS
AN INDIVIDUAL WHO INTRODUCES SOMETHING NEW
IN THE ECONOMY- A METHOD OF PRODUCTION NOT
YET TESTED BY EXPERIENCE IN THE BRANCH OF
MANUFACTURE CONCERNED, A PRODUCT WITH
WHICH THE CONSUMERS ARE NOT FAMILIAR, A NEW
SOURCE OF RAW MATERIALS, NEW MARKETS AND
THE LIKE----TO REFORM OR REVOLUTIONIZE THE
PATTERN OF PRODUCTION BY EXPLOITING AN
INVENTION------”
JOSEPH SCHUMPETER
9. CHARACTERISTICS OF AN
ENTREPRENEUR
DRIVER OF CHANGE
CALCULATED RISKS
SUCCESS/FAILURE
PLANNING ACTIVITIES
IS PROGRESSIVE
NEW TECHNOLOGY FOR IMPROVEMENT
CUSTOMER NEEDS
CREATING VALUE
OPPORTUNITIES
MGT AND ADMIN
10. TODAY ENTREPRNEUR------PERCEIVES OPPORTUNITIES FOR PROFITABLE
INVESTMENT
OBTAINS NECESSARY INDUSTRIAL LICENCES
ARRANGES INITIAL CAPITAL
PROVIDES PERSONAL GUARANTEES
SUPPLIES TECHNICAL KNOWHOW
12. IF YOU HAVE BUILT CASTLES IN THE
AIR, YOUR WORK NEED NOT BE
LOST;THAT’S WHERE THEY SHOULD
BE. NOW PUT THE FOUNDATION
UNDER THEM
HENRY THOREAU
13. ASK YOURSELF------♦ WHAT IS IT THAT DRIVES YOU?
♦ WHAT ARE YOUR CURRENCIES? Are they--♦ MONEY
♦ RECOGNITION
♦ COURAGE
♦ VICTORY
♦ ACCEPTANCE
♦ HEALTH
14. TAKE ADVANTAGE OF ---♦ A DISCERNING EYE
♦ ABILITY TO ASSESS A BUSINESS RISK
♦ DURABILITY EARLIER ON
♦ GOOD PLANNING-FINANCIAL AND OPERATIONAL
MILESTONES
♦ PROFESSIONAL PRESENTATION AND COMMUNICATION.
♦ TEAM ORIENTED APPROACH
“FORGET ABOUT BEING RICH: BE RICH IN YOUR HEART, IN
YOUR SOUL, IN YOUR MIND”
RAY KROC
15. WATCH OUT FOR----♦
♦
♦
♦
♦
♦
♦
♦
♦
SHORT TERM THINKING
UNFORGIVING NATURE WITH STAKE HOLDERS
EMOTIONAL INSTABILITY
LONER MENTALITY
LACK OF BALANCE
SELF- ABSORBED PEOPLE
ACRIMONY
LOSS OF FOCUS
FEAR OF MAKING TOUGH DECISIONS
“STARTING YOUR OWN BUSINESS IS MORE THAN JUST A
PROFESSIONAL PATH– IT IS A WAY OF LIFE”
KALIEL ISAZA TUZMAN
17. PROFILES OF NON ENTREPRENEURS
SHOTGUN SAM
IDENTIFIES NEW
PROMISING
BUSINESS OPPORTUNITIES-RARELY
FOLLOWS THRU
SIMPLICITY SUE
TYPE WHO THINKS
BUSINESS IS A SERIES
OF SIMPLE SOLNS
18. PRIMA DONNA PAUL
IN LOVE WITH
HIS OWN IDEASDOES NOT GIVE
OR ACCEPT
HELP
RALPH THE ROOKIE
THEORETICAL
UNDERDOG ED
ATTENDS
SEMINARSNOT ACTIONORIENTED
23. CHOOSING AN IDEA
IMPORTANCE OF CHOOSING MORE THAN ONE
IDEA
WEIGH INTRINSIC CAPABILITIES OBJECTIVELY
AMOUNT OF EXPERIENCE AT HAND
DEGREE OF PROFITABILITY IN THE PROJECT
LOCATIONAL ADVANTAGES
IMPORTED/INDIGENOUS RAW
MATERIAL/MACHINERY
AVAILABILITY OF WORK FORCE
TECHNOLOGY
26. CONSUMER BEHAVIOUR
WHAT DO PREOPLE/ORGANIZATIONS BUY
WHAT DO THEY WANT AND CANNOT BUY
WHAT DO THEY BUY AND DON’T LIKE
WHY DO THEY BUY
WHERE DO THEY BUY
WHAT ARE THEY BUYING MORE OF
WHAT ELSE MIGHT THEY NEED BUT CANNOT
GET
30. TASKS AT HAND
DISCUSS PRODUCTS/SERVICES WITH
PROSPECTIVE CUSTOMERS
ASSESS MARKET USING DESK AND FIELD
RESEARCH
ANALYSE COMPETITION
CONSIDER START UP STRATEGIES
PREPARE INITIAL FINANCIAL PROJECTIONS
PREPARE SIMPLE ACTION PLAN
CRITICALLY EXAMINE IDEA FROM ALL
ANGLES
31. SUBSEQUENT STEPS
DETAILED MARKET RESEARCH
PRODUCT RESEARCH/DEVELOPMENT TESTING
START UP AND DEVELOPMENT STRATEGIES
OUTLINE BUSINESS PLAN
IDENTIFY KEY RESOURCES/COMMUNICATION
NEEDS
SELECTION OF COMPANY NAME/LOGO, METHOD
OF OPERATION
LEGAL ASPECTS
PROFESSIONAL ADVICE
32. SKILLS AUDIT
OPERATION WITHIN EXPERTISE/RESOURCES
SMART TARGETS
SIMPLE PLAN
EXTERNAL INFLUENCES(PESTLE ANALYSIS)
PRIORITIZING WORK
ACTION PLANS FOR SELF DEVELOPMENTCPD
33. PPAND D PROCESS
IDEA STAGE
IDEA
EVALUATION
CONCEPT STAGE
LAB DEVELOPMENT
EVALUATION
PD STAGE
PILOT PRODUCTION RUN
EVALUATION
TEST MARKET STAGE
SEMI-COMMERCIAL PLAN TRIALS
EVALUATION
35. DETERMINING NEED FOR NEW
PRODUCT IDEA
TYPE OF NEED
TIMING OF NEED
COMPETING WAYS TO SATISFY NEED
PERCEIVED BENEFIT/RISK
PRICE VS PERFORMANCE FEATUTRES
MARKET SIZE AND POTENTIAL
AVAILABILITY OF CUSTOMER FUNDS
CASH OUTFLOW
CASH INFLOW
NET CASH FLOW
PROFIT
RELATIVE RETURN
COMPARED WITH OTHER INVESTMENTS
36. UNDERSTANDING OF PPAND D
CLEAR UNDERSTANDING OF AVAILABLE
TECHNOLOGY AND FUTURE TRENDS
UNDERSTANDING EXISTING PRODUCTS IN THE
MARKET
MARKET SEGMENTATION/TARGET MARKET
INVOLVES STUDY OF PIM, PID, PIC.
IMPACT OF PRODUCT IN THE MARKET
LAUNCH TIMING,RISK, INTENDED PRODUCT
PERFORMANCE
41. FOURTEEN BASIC QUESTIONS
WHAT IS THE NEED YOU FILL AND THE
PROBLEM YOU SOLVE
WHO ARE YOU SELLING TO
HOW WOULD YOU MAKE MONEY
HOW WOULD YOU DIFFERENTIATE YOUR
COMPANY
WHAT ARE THE BARRIERS TO ENTRY
HOW MANY COMPETITORS/THEIR QUALITY
HOW BIG IS YOUR MKT(IN MONEY TERMS)
HOW FAST IS THE MARKET
GROWING/SHRINKING
42. WHAT PERCENTAGE OF THE MARKET DO
YOU BELIEVE YOU COULD GAIN
WHAT TYPE OF COMPANY WOULD THIS BE
HOW MUCH WOULD IT COST TO START UP
DEBT CAPITAL OR RAISE INVESTMENTWHAT TYPE
DO YOU PLAN TO SELL YOUR COMPANY
OR GO PUBLIC ONE DAY
WHAT WOULD BE THE RETURN YOUR
INVESTORS WOULD GET IF THEY INVEST IN
YOUR VENTURE
43. RAMP MODEL
R-RETURN
R-EXIT STRATEGY
R-IS IT PROFITABLE
R-TIME TO BREAK EVEN
R-INVESTMENT NEEDED
A-ADVANTAGES
A-COST STRUCTURE
A-BARRIERS TO ENTRY
A-INTELLECTUAL
PROPERTY
A-DISTRIBUTION
CHANNEL