Small and Medium Enterprises Development Agency of Nigeria

INTRODUCTION
If you have decided to be an entrepreneur you have decided to create a new business venture, to work for yourself, to be your own boss. A successful self employment depends upon, having an idea which will translate into a product or service which a customer will need and be prepared to pay for. A business which satisfies you in terms of allowing you to make your own decisions or makes you a lot of money or provides you with a job you really like doing Having the right skills and ability both technical and managerial to run the business. Having or obtaining the resources necessary to produce your product or services

Introduction Contd
Do you have a mental picture of who your customers are likely to be? What of your competitors? How are you going to beat them? You need to plan because starting a business without adequate planning is like driving a car without headlight at two hundred kilometers per hour in the middle of rainy night.

ENTREPRENEURIAL TRAITS
As an entrepreneur you perform two distinct yet closely intertwined functions: Entrepreneurship and management. Entrepreneurship is the quality which enables people to start a new business or vigorously and innovatively expand an existing one. There are some basic character traits existents in an entrepreneur that enables him to seek-out business opportunities, conceptualize and initiate business projects gather the physical, financial and human resources needed to start the business, set goals for themselves and their enterprises and guide the enterprise and its people to accomplish the goals.

Entrepreneurial Traits contd

Take a minute and objectively rate yourself with the profile of an entrepreneur below Self Confidence -Belief in your ability of Independence -Independent -Optimism Strong will power -persistence and perseverance -Determination Task/Result oriented-Achievement oriented -Hard work, drive, energy - Initiative Risk taker -Like challenges -judicious risk taking ability Leadership -Good Communicator - Gets along well with others -Responsive to suggestions -Innovative, creative -Resourceful -Versatile -Foresight, vision, perceptiveness

Originality

Future Oriented

Entrepreneurial Skill
Technical Creative Human Innovative Design Conceptual Management Marketing

Validating Your Business Ideas

The most common and reliable sources of Business ideas are educational skills and working/Environmental experiences in ones life. The basic foundation for any successful venture is therefore the self conviction on the part of the entrepreneur that success can be achieved. Developing appropriate and harvest answers to the following under listed questions would enable you validate your business idea Is it practical? Is it legal? What service or product will I sell Does it meet a need(s) of other people Are they willing and able to pay for it. Can it be produced at the right quality and in the required quantity Can it be produced in am acceptable form as required by those wanting it. Has it linkages possibilities Can it meet the Constant changes in users, need and taste Is there a prototype of the product existing What is your Business advantage over existing firms What niche or gap would my business fill Can I create a demand from my business

Validating Your Business Ideas (Contd)

The Idea validation stage of your project is the most critical stage. Any mistake or misjudgments at this stage may lead to colossal loss of fund in future. You need to collect a lot of data and information about the project at this stage As Consultant we can be of immense assistance to you. We would train you to improve your entrepreneurial/management skills and also help you in gathering all the data needed to validate your business idea

Validating My Resources
After validating your business idea the next stage is to validate your resources what resources do you need to translate your idea into a business. These resources include: Business Premises Raw materials Machinery/ Equipment Personnel Funds How much of theses resources have you got now and how much of them do you need. e.g

Business Premises
Are you renting or Building? What is your product production requirement? Is there any regulatory requirement in the sitting of the project. Have your proposed business premise taken into consideration NAFDAC or SON requirements, which is more economical to you at this stage of your business, to build or to rent.

Raw Material
Many a times people assure through albeit wrongly that there is an abundant supply of the raw material for their project. There is the need to take a list of the required raw material for your project. Are they seasonal goods? Are they always available, is the one in your locality of the right quality and quantity for your business. What of cost? Are they both available and affordable? Many small business ventures have collapsed due to miscalculation of the availability of their raw material. Information on raw material can be obtained from RMRDC

Marketing
It is very vital to keep in mind that your business begins and ends with the marketplace. It begins by identifying customer needs and it ends with the satisfying of those needs and it ends with the right time and at the right price. A price that must also give an adequate return on your investment. As a prospective new enterprise, have you taken a minute to work out who are your major competitors? What is their market share? How do their products / services compare with yours? How do you anticipate that they will react to a new entrant into their market? How can you beat them? What are the unique selling points that differentiate your product from theirs? Have you done any demand assessment of your product. Who are your customers? Do you have several or will your sales be dependent on one or two. How do you intend to sell your products or services? Who will do the selling? Will you be adverting, calling on prospective customers or general selling in the market. product Price Place Promotion

Sources of Assistance
Local support Institutions and Agencies. This is to familiarize you with the various agencies that provide assistance to small enterprises and to enable you identify the particular assistance each of the Agencies provides. A FEDERAL GOVERNMENT INSTITUTIONS SMEDAN-Information in machinery, finance ,Enterprise training, bankable business plans. RMRDC- Information on Raw material Corporate Affairs Commission- Company Registration NAFDAC- Government Regulations on Food related products and services SON- National Standards on Products BANK OF INDUSTRY Financing NACRDB- Financing

Sources of Assistance (Contd)

B STATE GOVERNMENT AGENGIES
State Ministry of Commerce and Industry- Information on the states economic priority projects and feasible MSMEs in the State. State Investment corporation Agencies- Information on financing and available extension service facilities in the state. NON-GOVERNMENTAL ORGANIZATION
NASSI MAN NASME

Production Management
Production management is the process of the effective planning and control of the operations of that section of an enterprise devoted to transforming materials into finished goods. Production planning-Factory location and layout Production Strategy Production Policy

Human Resource Management

The human resource is the greatest asset in any enterprise. It is the management of people within the enterprise towards the attainment of the goals and objectives of that enterprise. It entails: Recruitment, Placement and induction, Manpower planning, Training and development, Reward system, performance appraisal, Industrial democracy , etc

Financial Management
Financial management is that managerial activity(interplay) which ensures that financial resources are obtained and utilized in the most prudent way for the attainment of the objectives of the enterprise. Financing Decision Investment Decision Dividend Decision

The Ten Commandments of SmallBusiness Finance

Thou shall set clear financial goals Thou shall prepare personal financial statement Thou shall prepare business financial statements Thou shall support projections of future cash flows with sound logic Thou shall decide upon a target capital structure

The Ten Commandments of Small Business Finance Contd

Thou shall recognize all current sources of financing Thou shall consider alternative sources of financing Thou shall recognize exposure to business risk Thou shall ensure that the financial plan fits with the overall business plan

Pre-Investment Proposal
Now that you have some basic information on your product, the raw material, the market for the product, the machinery and equipment and personnel. Make a trial preparation of a pre-investment proposal using the following format Background history of yourself Nature of the Project with description of the product or service to be provided Market- size, competitors Sales Strategy and method Raw material supply and needs Production process Product cost These are all estimates. For you to start a real business you need a detailed Business Plan but this attempt with a pre-investment proposal would be very useful to you in the process of writing your detailed business plan

The Business Plan

Management Manpower Requirement Product or Services Market and Marketing Production Process Financial Analysis Profitability Analysis Evaluation of the Project

Path to Business Success

Knowledge Skill Motivation Ability Resources Delighted Customers Innovation

The Small & Medium Enterprises Development Agency of Nigeria (SMEDAN)

SMEDAN is one-stop-shop for starting, resuscitating and growing MSMEs in Nigeria Voice of MSME. The Vision of SMEDAN is to establish a structured and efficient MSME sector that will encourage and enhance sustainable economic development of Nigeria. The Mission is to facilitate and promote the access of MSMEs to all those resources required for their growth and development.

The SMEDAN Mandate

Stimulating , Monitoring, and Coordinating the development of the MSMEs sector; Initiating and articulating policy ideas for small and medium enterprises growth and development; Promoting and Providing access to industrial infrastructure such as layouts, industrial parks, etc.; Linking MSMEs to internal and external sources of finance, appropriate technology, technical skills as well as to large enterprises; Promoting and facilitating development programmes, instruments and support services to accelerate the development and modernization of MSMEs operations; Serving as a vanguard for rural industrialization, poverty reduction, job creation and enhanced livelihoods; Intermediating between MSMEs and the Government;

INTERFACE BETWEEN SMEDAN AND OTHER STAKEHOLDERS

Government
Resource Partners including public & SMEDAN Foreign & Local private sector, MBOs, Investors Agencies, NGOs, Banks, Donors, etc

MSMEs

THE ROLE OF SMEDAN IN EMPOWERING MICRO, SMALL, AND MEDIUM ENTERPRISES

ACCESS TO FINANCE MARKET EQUIPMENT RAW MATERIALS

WORKSPACE

ESTABLISHMENT BSCs. BISs MSMEs DEV. CENTRES

INDUSTRAL PARK INDUSTRIAL STRATEGY AND POLICY FINANCE AND TECHNICAL ASSISTANCE

BUSINESS ENTERPRISES

BUSINEESS DEVELOPMENT SERVICES

BUSINESS INFORMATION

COLLABORATION STATE GOVT. BMOs NGOs MULTILATERALS PRIVATE ORGANs OTHER FED. GOVT. ESTABs.

POLICY ADVOCACY TAX MATTERS COMPETITION EXPORT PROM. REGISTRATION LEGISLATION REGULATIONS INCENTIVES

CAPACITY BUILDING: GEDP YEDP WEDP TOT

Conclusion
Working for yourself amounts to being your own boss. Your destiny and fate lie with you and you alone. There is no one to tell you what to do, how to do it, when, where or for whom to do it. Remember that once on your own, you are not likely to be able to do everything you want to . You have to enjoy what you are doing and strive to put in your best at all times.

Conclusion Contd
Being on you own amounts to you either sink or swim. You have to be every where at every time, doing the right things at the right time delighting customers by exceeding their expectations.

Conclusion Contd
The time is now for you to make active positive use of your instincts, insight and perceptions to manipulate and manage them to propel you to being an entrepreneur-inspite of the obvious dangers and challenges. You dont make an omelet without breaking an egg. We therefore crave your indulgence to take a dive into the waters of entrepreneurship and become self-reliant through starting your own business enterprise.

WELCOME
THEN GET STARTED! AS THERE IS NO TIME TO PONDER. WELCOME TO THE WORLD OF ENTREPRENEURS WE WILL CONTINUE THE DISCUSSION IN YOUR JEEP.