This document discusses risk taking and entrepreneurship. It explains that entrepreneurs perceive opportunities, take risks, mobilize capital, introduce innovation, organize production, make decisions, plan ahead, sell products for profit, and self-evaluate. The document provides tips for when is a good time to start a new idea, which includes gathering information through market research and financial projections. It also outlines the key components of a project study, including business model, technical, marketing, operations, financial aspects, and exit strategy. Entrepreneurs are advised to conduct a SWOT analysis and study these various factors when considering taking a risk on a new idea.

2. SESSION 9
Risk Taking

3. Perceives
OPPORTUNITIES in
the environment
2

4. Introduces
INNOVATION 2
WHEN IS A GOOD
TIME TO START ON A
NEW IDEA??

5.  Perceives Opportunities In the
Environment
 Takes Risk
 Mobilizes Capital for Business
 Introduces Innovation
 Organizes Labor and Production
 Makes Decisions
 Plans Ahead
 Sells Product at A Profit
 Self Evaluation

6.  Opportunities will be  Bank Loan Rates:
flashed and you will 10% interest;
decide to buy or not  Can Loan in
to buy an multiples of $1000
opportunity;
 You are given your
income profile
 Should you decide on
an opportunity, the
entrepreneur will
have to update his or
her financials;

15. Takes RISKS 2

17. Takes RISKS 2

18.  Information
 Market research
 Project Study
 Financial skills
 Guestimation
 Network

19.  Project Study
 Business Model
 Technical aspect
 Marketing aspect
 Operations aspect
 Financial Aspect
 Exit Strategy

20.  Business Model – the purpose of this is to
hilight how the business will generate
cash to recover the investment
 How will the proposed project generate
revenue?
 Retailing, Licensing, distribution
 Will there be recurring revenue?
 Are we offering a business or service?

21.  Technical aspect- studies the
technicalities the project may require.
 Required technology to deliver the service
 Raw materials availability
 Skills availability
 R&D requirement

22.  Marketing aspect- the purpose it to find
out if the business can fulfill an identified
need.
 Market size
 Competition
 Target market
 Location
 Selling strategies
 R&D requirement
 Industry trends

23.  Operations aspect- the purpose is to find
out the most efficient way the product or
service will be delivered.
 Capacity
 Management and Personnel
 Physical layout
 Equipment and Training
 Government and environmental regulations
 Plant expansion plans

24.  Financial aspect- the purpose is to find
out the capital requirement for the
project and to determine the ROI.
 Capital requirement and sources
 Financial Projections (BS, CF & PNL)
 BE Analysis
 ROI
 CBA
 Plant expansion plans

25.  Exit Strategy – the method by which an
owner or investor can get out of the
investment made.
 Recovery of investment via dividend pay outs
 Cashing Out
 IPO
 Closure or liquidation of asset

26.  Gather some pertinent information
regarding your idea;
 Perform a SWOT analysis of the idea
 Prerequisite: Your original idea
(something that is challenging, medium
scale undertaking)