Taking the Road to Entrepreneurship

Develop an understanding of entrepreneurship

Self analysis mindset & skills

Defining & knowing the traits of successful

entrepreneur

Examine timing & funding availability

Taking the Road to Entrepreneurship

Develop business concept.
Test it against social, political, financial &

economic realities.
Develop a comprehensive business plan.

Understanding Entrepreneurship : The Age Of Entrepreneur

Exciting
Challenging

Ever changing
Everyday brings new obstacles/rewards

Understanding Entrepreneurship
Owning a business
Knowing how the business works

Planning a business carefully and knowing ones

personal qualities differentiates winners from losers

+ Todays economic climate encourage & nurture Eship

- Downsizing / Outsourcing / Restructuring

small is beautiful.
What is E-commerce? What are virtual companies? Small companies are tapping into global markets According to research small companies

respond quickly to change (competitive edge over

large companies)

small is beautiful.
Economic future rests largely on growth of small businesses. How much employment do they provide?

What is their contribution to sales?

How many new jobs created?

Fashion Entrepreneurship
In fashion retail, change is a constant

Back to front(whole class)

Being conditioned to change will prepare you to succeed in business world Entrepreneurship or business (job) knowledge of all aspects of business is very important

Fashion Entrepreneurship
What is the future of the fashion industry? What trends and issues are having an impact on the direction of entrepreneurial business in apparel & accessories?

Fashion Entrepreneurship
In todays competitive market place, only those will survive who Reinvent themselves enough times and with enough flexibility and resources to anticipate, not manipulate, the 21st century customer.

THERES JUST NO OTHER WAY!!!!

Fashion Entrepreneurship
Not just recognise.anticipate consumer needs & wants..if you want to reap rewards Consumer trend watching has become as

important as fashion trend watching

e.g. Casual dressing in the workplace

Lack of interest in apparel quality

What is Entrepreneur?
Is it someone One who creates a product on his own account?

What if Mukesh takes Ratans product and makes

it a success?

Is it an individual who starts a businesswhich

means if a business is no longer in the start-up

phase, it wouldnt be entrepreneurial any more.

What is Entrepreneur?
The International Society of Entrepreneur defines

an Entrepreneur as :
A person who organises and manages a business undertaking, assuming all risk for the sake of profit Definition by Oxford English dictionary Entrepreneur is one who undertakes an enterprise..especially a contractor acting as an

intermediary between capital labour.

What is Entrepreneur?
Entrepreneur is the agent who buys means of production at certain prices in order to combine them into a product that he is going to sell at prices that are uncertain at the moment at which he commits himself to his costs (FARMER)

- An entrepreneur may start a new enterprise.

- He may acquire a franchisee

What is Entrepreneur?
An Entrepreneur recognises opportunity Gauges its value and the resources required to convert the opportunity into success Has the vision of how the business will grow Has the drive to make it happen

What is Entrepreneur?
An Entrepreneur always looks for better and innovative ways to find new markets, to add to an existing product line They move with the times.better still, they move before the times

What is Entrepreneur?
you are futurist you anticipate & embrace change
you see outside the box you persevere and are not easily defeated You thrive in a challenging environment You have a tremendous need to be in control

What is Entrepreneur?
you take calculated risks & welcome responsibility You are absolutely passionate about what you do Is there anyone in this class who qualifies for the position of an entrepreneur?

Do you have what it takes.

It requires a flair for 4Ps Do you know what will sell? Retail Industry is both people oriented as well as

service oriented
Are you ready to juggle satisfied as well as

unsatisfied customers?

What is Entrepreneurship?
Entrepreneurship involves combining factors of production to initiate changes and it is

discontinuous phenomenon

There are economic & non-economic factors affecting

Entrepreneurship
Economic factors: Non-Economic factors:

Market incentives
Availability of capital

Political ideology
Legal structure Social mobility Psychological factors (need achievement) Cultural factors

Entrepreneurship brings with it..

Opportunity to meet new people Travel for business Develop successful business teams Financial success

Independence from working for someone else

Traits of successful Entrepreneur

Self SWOT (class) Talent Vs. Skills

Traits of successful Entrepreneur

Passion/Desire When one is passionate, tasks seem relatively timeless & effortless. Launching a new venture requires long hours & many challenges.

Traits of successful Entrepreneur

Determination/Perseverance It takes 4-5 years before money starts rolling in & hours decrease to a manageable levels Entrepreneurs WANT to succeed and do not give up easily, EVEN WHEN IT MAY BE WISE TO DO SO YOU figure out the path to reach your goal & challenge all obstacles

Traits of successful Entrepreneur

Responsibility For yourself, your employees & your business E.g. incorrect style no. wrong price many corrective actions fire employee.TRAINING COST

Re-label to original PO.STOP PRODUCTION

Send jackets back to factory..BOTHERATION/

REPUTATION

Traits of successful Entrepreneur

HEALTH & ENERGY
Starting biz requires tremendous amount of

energy
Health affects ones ability to think clearly and to handle situations in a controlled manner Customers & employees need to know that you have the stamina & skills to handle any situation

Traits of successful Entrepreneur

Must have judgment, perseverance and

knowledge of business Must possess the art of superintendence and administration

Traits of successful Entrepreneur

1. An unusual creativity level 2. A propensity of risk-taking 3. A strong need for achievement 4. Total commitment, determination &

perseverance 5. Drive to achieve and grow

Traits of successful Entrepreneur

6. Opportunity and goal orientation 7. Taking initiative & personal responsibility 8. Persistent problem solving 9. Realism and a sense of humour 10. Seeking and using feedback 11. Internal locus of control

Traits of successful Entrepreneur

12. Calculated risk taking and risk seeking 13. Low need for status & power 14. Integrity & reliability 15. Keen observation 16. Ability of discrimination 17. Tact & patience

Traits of successful Entrepreneur

18. Mentally alert 19. Good judge of human nature 20. Good leader 21. Willing to change

22. Vision & foresight

Functions of an Entrepreneur
1. Perceiving market opportunities 2. Gaining command over scarce resources

3. Purchasing inputs
4. Marketing of products & responding to

competition
5. Dealing with concessions / licences / taxes

Functions of an Entrepreneur
6. HRM

7. CRM
8. Vendor development/management 9. Managing finance 10. Managing production

Functions of an Entrepreneur
11. Acquiring & overseeing assembly of factory 12. Industrial engineering

13. Upgrading process & product quality

14. Introducing new production techniques & products

Types of Entrepreneurs
1. Innovating entrepreneurs 2. Adoptive or imitating entrepreneurs

3. Fabian entrepreneurs cautious/sceptical +

shy/lazy 4. Drone entrepreneurs laggards

Entrepreneurs Vs. Managers

1. Innovation 2. Risk taking

3. Reward
4. Skills (intuition, creative, innovative,

managerial) 5. Status (self-employed, salaried) 6. Response to authority

Barriers to Entrepreneurship
1. Lack of a viable concept

2. Lack of market knowledge

3. Lack of technical skills 4. Lack of seed capital 5. Lack of business know how 6. Complacency lack of motivation

Barriers to Entrepreneurship
7. Social stigma 8. Time pressures & distractions 9. Legal constraints & regulations 10. Monopoly & protectionism 11. Inhibitions due to patents

Nature & Characteristics of Eship

1. Innovation new product / new method of
production / new market/ new sources 2. Function of high achievement tendency to strive for success in challenging situation 3. Organisation building function multiply oneself by effective delegation 4. Managerial skills & leadership

Being The Boss

Unfortunately, it is one of the more

insidious of the bunch

the reality is that one's customers and suppliers direct where most entrepreneurs time and money is spent Other bosses also include the bank, investors, staff and vendors

Getting Rich some entrepreneurs make a lot of money

very quickly- but most don't! Those who do, we fail to see the years of work behind the supposed short term success Eship is a way to build wealth, but usually over the long term.

Quick

most successful business owners don't see

significant growth until year 5, or even year

start-ups cannot be funded with debt

the fact is that debt is more prevalent than equity. Therefore, for those with solid plans, source of finance does not matter, provided

the vision and the plan is clear for the future

of the business.

This is not true

banks do not lend to start up businesses

up to 16% of all financing comes from

banks
those starting need to approach banks in

the right way

Trade creditors are also known to finance start-ups and make up a bulk of financing.

People start in very attractive industries

not true at all

Many entrepreneurs have actually been

seen to go to the worse industries there are They actually pick the areas they will most likely fail!

talents & abilities of the entrepreneur alone can ensure success

not true the general factors outweigh the

qualifications of an entrepreneur
An entrepreneur has to look further than his talent to survive

Most entrepreneurs are successful financially

another myth Eship creates a lot of wealth, but it is very unevenly distributed Only the top 10% of entrepreneurs earn

more money than employees

typical entrepreneur earns lesser money

than a salaried person

Starting a business is easy

it isnt! most people fail to get the company up & running

7 years after beginning only 1/3 people

have a new company with positive cash flow

> salary & expenses of the owner!

Eship : High Risk

risk is : "not knowing what you are doing

there is risk in everything

We cannot eliminate all risk, but we can

minimize risk, by educating ourselves and so

we know what to do and how to do the best option - follow the footsteps of people who have achieved what you want

I'm not a born Entrepreneur!

Neither is Bill Gates or Steve Jobs! Eship success doesnt necessarily runs in

the blood
Some people succeed their parents'

business so well, because they learn eship

skills since young They mix with successful entrepreneurs your Net-Work is your Net-Worth!

It takes a lot of money to finance a new business

design the businesses to work with little cash
borrow instead of paying for things rent instead of buy turn fixed costs into variable costs by, say, paying people commissions instead of salaries Use little resources to make the most out of it

It takes a lot of money to finance a new business

manufacturing & retail biz. require tremendous amount of capital, but service-

oriented or consulting businesses don't require

much capital

Cash strapped entrepreneurs should review

businesses requiring minimal funds. (e.g. internet entrepreneur, Network marketing)

You can be an Entrepreneur only if you are rich

people who are not privileged continue to make it big even after starting from scratch with no special favours or advantages you can start part-time, and set aside a certain amount of money for your business investment Many people say that they will start a

business when they are rich, but most dont!

They never have the money to do so

IMPORTANCE OF ENTREPRENEUR

They increase per capita output and income They initiate and constitute change in the structure of business & society Entrepreneur innovates, develops new products/services for the market Stimulate investment interest in new ventures

They play a key role in economic

development of an area

Entrepreneurs produce solutions that fly in

the face of established knowledge, and they always challenge the status quo. They are risk-takers who pursue opportunities that others may fail to recognize or may even view as problems or threats.

Eship is associated with change, creativity, knowledge, innovation and flexibility - factors that are increasingly important sources of competitiveness in an increasingly globalized world economy

For many developing countries, private sector development has been a powerful engine of economic growth and wealth creation, and crucial for improving the quality, number and variety of employment

opportunities for the poor.

Economically, entrepreneurship invigorates

markets.

The formation of new business leads to job

creation and has a multiplying effect on the

economy
Socially, entrepreneurship empowers citizens, generates innovation and changes mindsets

SOURCES OF NEW IDEAS

1. Consumers 2. Existing products & services 3. Distribution channels 4. Government

5. Research & development

SOURCES OF NEW IDEAS

1. Consumers Informal monitoring of potential ideas and needs Formal arrange for consumers to express

their opinions
*Idea should represent large enough market

SOURCES OF NEW IDEAS

2. Existing products & services Analysis of existing products uncovers ways to improve and thereby create better/new product or service

SOURCES OF NEW IDEAS

3. Distribution channels Members of supply chain source for new ideas familiarity with needs of the market They have suggestions for completely new

product
They also help in marketing of new products

SOURCES OF NEW IDEAS

4. Government Files of patent office new product possibilities Patent may not be feasible but good

fodder for ideating

Patent office also lists all patents available for

sale
Also lists government owned patents

SOURCES OF NEW IDEAS

5. Research & Development May be a formal endeavour connected with your current employment could be an informal lab in a basement or a

garage

Methods of Generating New Ideas

Methods of Generating New Ideas

1. Focus Groups 2. Brain Storming

3. Problem Inventory Analysis

Methods of Generating New Ideas

1. Focus Groups [groups of individuals providing information in a structured format] Since 1950s Group + moderator open in-depth

discussion
For new products may have directive or

non-directive manner 8 to 14 participants

Methods of Generating New Ideas

1. Focus Groups The group is stimulated by comments from its members in creative conceptualising and developing a new product idea to fulfil a

market need.
E.g. Lined wind cheater, driving gloves for

ladies

Methods of Generating New Ideas

1. Focus Groups Basis of advertising message may also come from the group Focus group is an excellent method for

initially screening ideas & concepts

The results can be analysed quantitatively

Methods of Generating New Ideas

2. Brain Storming [a group method for obtaining new ideas & solutions]

Allows people to be stimulated to greater

creativity

Participation in organised group experiences

Best results emerge when focus is on specific product or market area

Methods of Generating New Ideas

2. Brain Storming Rules to be followed: a. NO criticism is allowed by anyone in the group/ NO negative comments b. Freewheeling is encouraged the wilder the

idea better!
c. Quantity of ideas is desired more the better!

Methods of Generating New Ideas

2. Brain Storming Rules to be followed: d. Combinations & improvements of ideas are encouraged; ideas of others can be used to

produce further new ideas

Session should be fun/no dominance/no inhibitions

Methods of Generating New Ideas

3. Problem inventory analysis [a method for obtaining new ideas and solutions by focusing on problems] Analogous to focus groups Consumers are provided with a list of

problems in a general product category

Consumers identify and discuss products in this category that have the particular problem

Methods of Generating New Ideas

3. Problem inventory analysis This method is often effective since it is EASIER to relate known products to suggested problems and arrive at a new product idea than

to generate an entirely new product idea

Can also be used to test a new product idea List of problems is developed consumers associate products with problem

Methods of Generating New Ideas

3. Problem inventory analysis *Results must be carefully evaluated as they may or may not actually reflect a new business opportunity

For best results PIA should be used primarily

to identify product ideas for further evaluation

Opportunity Recognition
Ability to recognise biz. opportunity is

fundamental to entrepreneurial process as well as growing biz. Significant research has been done on the opportunity recognition process

Keys to recognising opportunity lies in the

knowledge and experience of the entrepreneur

Prior knowledge = education + experience

Opportunity Recognition
Entrepreneur should have relevant knowledge and desire to understand and make use of it Other important factor entrepreneurial alertness and entrepreneurial networks There is an interaction effect between

entrepreneurial alertness & entrepreneurs prior

knowledge of markets & customer problems

Opportunity Recognition
Entrepreneur who can recognise opportunity

is in a strategic position to successfully

complete the product planning & development

process and successfully launch new ventures

Business Plan
A format which helps the Entrepreneur in launching a product/service. It comprise of all the elements for successful launching , monitoring the performance of business . It specifies how the companies objectives will be achieved through strategies . The business plans are made in coordination to the plans and capacity of other departments. It broadly comprises of five components- Background , Situation Analysis , Marketing plan , Financial plan and organisational . Marketing Research is the most important tool for creating a business Plan. It also highlights the role of internal and external relationships

What is the business plan?

Its a written doc. It describes all external/internal elements involved in start-ups Integration of marketing / finance / H.R./

Production plans
Addresses long term/short term decision

making

What is the business plan?

Address the integration and coordination of effective business objectives and strategies Roadmap or gameplan
Where am in now?

Where am I going?
How will I get there?

3 Main Perspectives of B.P.

1. Entrepreneurs perspective knows best the creativity & technology involved in a new venture 2. Marketing perspective view the business through the eyes of the customer

3. Investors

perspective

sound

financial

projections are required

Business Plan Format

Background (Product description ,Industry Description ,Customer description Situation analysis Operations plan Marketing Plan and Objectives 4Ps/ 7Ps Financial Plan and objectives Source of Funds , Cost Benefit Analysis , Pay back period Organization structure

External resources/sources
Sources of information which support an Entrepreneur in planning the new venture Department of Commerce Government information centers Bureau of Census State and Municipal governments Banks

External resources/sources
Sources of information which support an Entrepreneur in planning the new venture

Chambers of commerce
Trade associations

Trade journals
Libraries Universities and community colleges

Why some business plans fail?

Unreasonable goals Immeasurable goals

Entrepreneur has not made total commitment

to the business/family Entrepreneur has no experience in the new venture

Why some business plans fail?

Entrepreneur has no sense of potential
threats/ weaknesses to the business No customer need was established for the proposed product/service

Product Description
Consumer / Business Convenience / Shopping / Specialty / Unsought Relevance Differentiation

Industry Description
History and Evolution of the Industry Size of the Industry

Major Players
Supply chain Major Growth centers

Customer Identification

Who is our customer (Demographic Gender, Age /Stage of life, Education , Occupation , Income , Social class ) Where is he located (Geographic Rural , Urban , Tier ) Number of potential customers

Understanding Customer

Behavioral What do they buy How much they buy Where do they buy from When do they buy Who influences their buying

Situation Analysis
Demographic
Vendor/Suppliers /Manufacturer

Economic

Competitors

Retailer Customers

Political
Company resources

Technological

INTRODUCTION

An operational plan in a Business plan is a description of how the work will be done, the flow of work from input to end results, and the machines which will be used. It explains the daily operation of the business, its location, equipment, people, processes, and surrounding environment.

An operational plan draws organization strategic plans to describe organization missions and goals, program objectives, and activities. Like a strategic plan, an operational plan addresses four questions: Where are we now? Where do we want to be? How do we get there? How do we measure our progress?

Operational plans should contain: Clear objectives, Activities to be delivered, Quality standards, Desired outcomes, Staffing and resource requirements, Implementation timetables, a process for monitoring progress.

The Operational Plan is the third part of the completed Strategic Plan. It defines how to implement the action and monitor the plans what are the capacity needs, how resources will engage, how to deal with risks, and how to ensure sustainability of the projects achievements.

WHY IS AN OPERATIONAL PLAN IMPORTANT? An Operational Plan ensures to successfully implement the Action and Monitor the plans by getting the team to:
Prepare the project to raise funds, being clear about how to get the resources and prepare a convincing plan to review with existing and potential donors.

Use resources efficiently, to help allocate scarce resources to the most critical gaps and needs.
Reduce risks where possible, and prepare contingency plans where necessary. Think about the long term future of the project, including how to ensure sustainability of your projects targets and impacts.