ENTREPRENURAL STUDIES II BY DR KIFORDU AANTHONY Ent 221 Introduction To Entrepreneurial Studies II by Kifordu AA is licensed under a Creative Commons AttributionNonCommercialShareAlike 40 International License ID: 932468
Download Presentation The PPT/PDF document "ENT 221 INTRODUCTION TO" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
ENT 221INTRODUCTION TO ENTREPRENURAL STUDIES II
BY DR KIFORDU A.ANTHONY
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide2COURSE OUTLINEIdea GenerationEnvironmental ScanningNew Venture Financing
Financial Planning and ManagementFeasibility Study and business planStaffing
Business StrategiesDocumentation/book-keeping
Marketing
Introduction of successful entrepreneurs
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide3IDEA GENERATION The process of creating, developing, and communicating ideas which are abstract, concrete, or visual. The process includes the process of constructing through the idea, innovating the concept, developing the process, and bringing the concept to reality.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide4SOURCES OF GENERATING NEW BUSINESS IDEAS
From consumer or target audience
From
existing products and services
From
marketing distribution channels
From research and development
From the Government of the day
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide5Types of Business Opportunities For EntrepreneursThere are many business opportunities open out there within and around you if you are creative enough to discover them. Opportunities in them need to be discover not merely at the surface but in-depth. Opportunities could also be created originally from one’s idea, creativity and innovationBuy a Franchise
Distributorship or DealershipNetwork MarketingLicensing
Finding and Filling a Niche
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide6Business Opportunities GuideYou do not need to go far, thinking on what your business will provide. Your God-given talent, passion, gifts, skills or natural endowments are already the place to start from. Are you good in a particular subject? Then provide a solution or services in that area...Student I Do you have a talent or are you inclined in one natural skill or the other. That could be the answer. What are your unique skills, talent or natural endowment? Remember your life purpose does not necessarily mean what you do. This is true because what you do is not what you are. So don’t just limit yourself to your certificate or what course you read in school or your current
job…..Student IIYou are unique in yourself. Find out what is unique with you and that might be your place of business. Don’t be in bondage. You are free to be your natural self. Appreciate your uniqueness and give God praise. The world is waiting for just you. You have something to offer and until you manifest in God’s design you cannot find true
happiness….Student III
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide7ExamplesCreate a Business/Service solving peoples’ problems.Here is the crux of the matter. When you solve a problem or provide for a need, you are creating a business – and of course you will be paid. This could be online or offline. There are problems everywhere, around you waiting for someone to proffer a solution. You can be the one that will proffer such solution. Why not BELIEVE
in yourself to be the problem solver. Problems among men are not to be solved by angels, rather by men. Look around and when you see problems, approach it with faith in your inner self to be the one who has the solution. Different categories of God’s creatures, including the environment have problems. Youths, children, women, men – all in their varying environment do have problems that demand solution. When your business provides solution, then it is indeed a business.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide8Suggested ExamplesSolution to high failure rate of student writing SSCE/WASSCE in English language?SolutionsYou can have an online tutorial solution, where your website provides comprehension, summary and prospect answer questions on a form
We shall assist you to create such website and you can start making money, because students will subscribe monthly or quarterly or yearly. Parents and guardian will come to know about it. By doing this you will be solving a problem that is national.
All you need is an internet connection in your home or a visit to a cyber café thrice a week to view your website and email from those who have subscribe to your
services
Your internet is the first answer
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide9Create a Business/Service from the questions people askHow can I avoid carryovers during my stay in the university?SolutionsEvery student knows how a failed course in whatever level can affect his overall academic performance and final grade before graduation. Every student wants practical solutions to the problem of carryovers. You can be the solution as you proffer a complete guide from your website.
You know why student have one or more carryovers, and such factors are not just from one angle, they could be from other causes. When you have a website that settle more on solving students’ academic problem, then you are in business. Your target audience will be higher institution students in Nigerian. In such a website you can even provide a way of assisting your prospect in solves other problems that are not necessarily academic.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide10Create a Business/Service from your personal experiencesYour personal experience from a fail friendship or relationship can be the place to start. You can have a website that tries to offer solution(s) to heart breaking/failed relationship experience among youths or young people. This concept can be use to generate solutions to others via providing a service.Your personal experience from an armed robbery attack could also lead you to have a website that provides security advice and tips to its audience on different scenarios and situation in life.
This concept of generating business solution could be applied to other areas where our experiences become very useful information for a specific audience.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide11Create a Business/Service from seasonal Opportunities, economic opportunities, crisis opportunities etc.The incessant power shortage problem in Nigeria has cause many problems to small and medium business in Nigeria. One could use such opportunity to create a service that provides the Nigerian households, individuals and businesses with alternative power supply.
SolutionsFor example you can provide a service that provides genuine information on solar energy to Nigerians. You merely state the importance of solar energy as the lasting solution to the problem and provide practical solution.
You can also provide a consultancy service on this regard as well. Offer to install a power solution at moderate charges. I bet you, you will have prospect that will visit your physical office address and even find you online. Remember your involvement is to source for the installation to be done, not necessarily by you, but by a company. You will need to do some surveys, know all the materials needed for installation and the price range of products from those companies and a host of others.
Recently, a new innovation called “
fuelless generator” are being designed. An ordinary generator could be converted to a fuelless
generator. Find out about this new innovation, get the necessary information and service link. Try to build a business structure around this and provide the public with the requisite information and services in this area.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide12creative problem solving techniques for business organizationsCreativity is an essential attributes of any successful entrepreneur. With creativity the entrepreneur has different understanding of a situation due to varied form of ideas being generated :Brainstorming
Reverse BrainstormingBrain writing Checklist Method
Collective Notebook MethodFree Association
The Gordon Method
Forced Relationship
Big-Dream ApproachAttribute Listing
Parameter Analysis
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide13Innovation In BusinessAccording to Baregheh et al. (2009):"Innovation is the multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace.
Innovation typically involves creativity, but is not identical to it. Innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide14Types Of Innovations In BusinessBreakthrough Innovation
Technological Innovation
Ordinary Innovation
Product
improvement
Process
improvement
New
business models
Market
extension
Socio-organizationalEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide15ENVIRONMENTAL SCANNING This is a process that systematically surveys and interprets relevant data to identify external opportunities and threats.
An organization gathers information about the external world, its competitors and itself. ...
The
next step is to conduct an internal scan of the organization
.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide16Strategic Planning: What are the basics of environmental scanning? The first step is for an employer to gather information about the world in which it operates, including information about the economy, government, laws and demographic factors such as population size and distribution.
Next, the organization should focus on its competitors. The company should examine the research for trends, opportunities and threats that might impact its business.
The third
step is to
conduct an internal scan
of the organization. Examine the company's strengths and weaknesses. Consider where the company is now and where it plans to be in five or 10 years. Interview or survey leaders of the company.
After the data is collected, the final step is to
analyze the data
and identify changes that can be made.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide17THE WONDER OF THE INTERNETThe internet by far is the greatest business opportunity that you can implore to grow your business. According to surveys, consumers are expected to account for 90 percent of all internet traffic with the rest of the market made up of business users
What does that mean for an online marketer like you? It means customers – millions and millions of customers. No other business tool can put the product you sell to so many people at no cost. This implies a potential market of hundreds of millions of people around the world who can buy your product 24 hours a day, 7 hours a week, 53 weeks a year and 365 days a year.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide18Internet Contd…The internet by far is the greatest business opportunity that you can implore to grow your business.leverage by timeInternet selling is on the increase-
According to the study conducted by Ipsos Reid Market Research Firm in February 2003, in 1999 only 28% of worldwide internet users purchased a product or service online, whereas this figure rose to 62% in 2002 and about 70% in 2005The
INTERNET is a huge Market place that has attracted all forms of businesses with its potential for big-time, high revenues with time.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide19Types of WebsitesWebsites are classified based on informational contents, overall purpose, bandwidth, storage capacity and other high tech features and functionalitiesSearch engine
Google, yahoo and MSN directories,
yellow pages
Portals
Blogs
Online shops
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide20NEW VENTURE FINANCINGNew Venture CapitalInvestments in good prospects for return on investment
Looking for six times their investment over a five year periodRely on business plan in their decision to or not to invest
They want part of ownership of business(Equity)
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide21Ways Venture Capitalists get their ROISale of holdings to any willing investorPaid out their profit when a company is sold
Investment is a function of business plan.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide22Stages of new Venture Development and FinancingSeed or Concept or Inception- Status, Task and FinancingStart-up or Early Growth- Status, Task and Financing
First stage or Rapid growth-Status, Task and
FinancingSecond stage or Development Growth stage
-
Status, Task and
FinancingMaturity stage-
stage-
Status, Task and Financing
Decline Stage-
stage
-
Status, Task and FinancingEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide23Sources/Types of Funding for New VenturesPersonal ResourcesLoansPartners and Teams
Rotating savings schemes and money lendersTrade credit accruals
Hire purchaseBank loans
Finance lease
Debenture
Stock/equity financing
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide24Financial Institutions and New Venture FinancingEvaluating a loan ProposalPurpose of the bank finance
Amount requiredEntrepreneurs stake in the business
Source of payment
Management capacity
Character of entrepreneur
Collateral security
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide25Financial Management for the New VentureFinancial planningReview performance,
operating characteristics, cooperate strategy, operations cash flows,
financing alternatives,consequences of financial plans
consistency
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide26Working Capital ManagementCash budgetingPayback Period MethodAccounting Rate of Return(ARR) AAR= Average Annual Net Profit × 100
Average Investment4. The Net Present Value(NPV) NPV = St - C
o t = 1(1+k)tWhere:
St = sum of cash inflows during the time t
Co = cost of capital
i.e interest of borrowed fundst = 1,2,3…N(time period)5. The Internal Rate of Return(IRR)-Discount rate equates present values
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide27FEASIBILITY STUDYAs a prospective entrepreneur with creative and innovative ideas, feasibility study is a must. There is a great need to add to your inner courage a study of how feasible and viable your business vision is.
This will necessitate the need to conduct a twin study of feasibility and viability. This must be done in full scale and carefully with commensurate research and information.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide28Feasibility contd…Is this business possible?Is this business practicable?What is the probability
of success in the near future?Do I have the capability to carry and sustain the business through the business life cycle?Will
I achieve my goals and objectives in the long run?Do I have the needed resources and support to start the business?
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide29PROCESSES INVOLVE IN CARRYING OUT A FEASIBILITY STUDYYour Business Vision and MissionTarget AudienceLocation for your BusinessLevel of incorporationBusiness operating EnvironmentIndustry Factor
Startup CapitalAdequate and accurate financial informationRecognition and management of riskLevel of Viability
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide30Contd…Your Business Vision and MissionTarget AudienceLocation for your BusinessLevel of incorporationBusiness operating EnvironmentIndustry FactorStartup CapitalAdequate and accurate financial information
Recognition and management of riskLevel of ViabilityEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide31VIABILITY STUDYThe viability study is a subset of the feasibility study. It concerns the concept of risk in business and the survival of the business in the face of uncommon and unfavorable business environment.The difference between a feasibility study and a viability study is that the feasibility studies confirm that the business is practicable while viability determines whether the business can stand any form of challenges and risk in the near future.
The purposes of feasibility study are to assess the practicability of the business, seek financial support from investors or banks, research on other sensitive areas of the business and to gather enough information as to why others succeed and why others fail.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide32BUSINESS PLAN - DEFINITIONA business plan is a document designed to detail the major characteristics
of your prospective or existing business, stating clearly its product or service, its industry, its market, its manner of operation (production, marketing, management), and its financial outcomes with an emphasis on the firm's present and future projection.A business plan
should describe your business concept, how your company will operate, what the company plans to do, your business goals and how you intend to achieve them.
A
business plan
is a formal statement consisting of a set of business goals, the reasons why they are believed to be attainable and the plan for reaching those goals. It should also contain background information about the organization (business entity) or business team needed to achieve those goals.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide33Business Plan contd…There are basically two circumstances under which creating a business plan is absolutely necessary. external legitimacy : when outsiders expect it
internal legitimacy : When business plan is absolutely necessary Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide34ESSENTIAL INFORMATION FOR A SUCCESSFUL BUSINESS PLANA Business plan must be informative. A variety of way to present your business’ story in terms of time and space and make them available to suit your different audience. These range from a two-sentence concept all the way to a 40-pages business plan. For
a successful business plan, there are five basic types of business planning sections and presentations: They include vision statements, mission statements, elevator pitches, executive summaries, and appendices. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide35THE CLASSIC BUSINESS PLAN STRUCTUREThe business plan still remains the standard for describing the business in detail.There are nine parts that makes up a full business plan.
The classic structure of a business plan contains a maximum of 25 single-spaced pages of text and 15 pages of financials and appendixes. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide36PARTS OF A BUSINESS PLANCover LetterA cover letter is a one-page document on business stationery (also called letterhead) that introduces the business plan and its owner. Indicates why the recipient is being asked to read the plan.
It is typically the first written material someone sees about your business, so it needs to look and sound just right. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide37Title Page Company nameContact information Date.Proprietary statement to protect your ideas:
Here is an example, "This document contains confidential and proprietary information belonging exclusively to [your company's name goes here]. Do not copy, fax, reproduce, or distribute without permission." Often on the line following this statement is a copy number unique to each copy of the plan. This helps you keep tabs on individual copies.
Securities disclaimer. If you are using a business plan to seek individual investors, it is important to state the following on the title page: "This is a business plan. It does not imply an offering of securities."
Typically this comes after or as part of the proprietary statement.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide38Table of Contents The table of contents typically puts the major section headings (e.g., executive summary, company, market, etc.) in boldface type and the sections underneath each in regular type. Page numbers are given for every component, including financial statements and appendixes. Remember to put page numbers on every page of the business plan, even the financials.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide39Executive Summary Many entrepreneurs write the one-to-two-page executive summary first, using it as a guide, and then write the rest of the plan.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide40The Company The first section of a business plan tells the story of your company. Ideally it should sell the reader on the company and the ideas and people behind it. It usually consists of two subsections; the first is the one that provides an overall description of the business and the other focus on its product or service.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide41Company Description (1-2 pages) Vision statement Mission statementCompany Backgroundbusiness's competitive advantage
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide42Elements of a Business PlanExecutive SummaryBusiness concept.
Financial featuresFinancial requirements
Current business position
Major
achievements
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide43Business Plan : Business Description Tell Them All About It
Will I Profit?
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide44Business Plan : Market StrategiesDefine Your Market
Projecting Market SharePositioning Your Business
Pricing
Distribution
Promotion
Plan
Sales
Potential
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide45Business Plan : Competitive AnalysisIdentify and Analyze Your Competition
Create
a Competitive Strength Grid
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide46MID- SEMESTER TEST QUESTION(30mins)1.Propose a Business of your Own and state the following: -The Idea
-Type of Innovation -How you intend to advertise it
-Suggest your target market and any working capital management.
2. What are the essential information for a successful business plan…
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide47STAFFINGStaffing involves recruiting, hiring and training the most appropriate people to represent your business. Beyond hiring, effective staffing involves assessing work environment needs, scheduling, training and providing constructive criticism and feedback. The main objective of staffing is to ensure you have an adequately trained workforce that can help you operate and grow your small business.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide48CHARACTERISTICS OF STAFFINGNeeds AssessmentHiring and Job PlacementTraining and AssimilationEfficient
Workforce DevelopmentEffective Business Operations
Workforce LongevityEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide49CHALLENGES OF STAFFING1. Determining your needs2. Finding the right culture fits.. Balancing experience and cost.4. Timing initial hires.
5. Achieving flexibility.6. Growing manageably.
7. Retaining talent
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide50Business StrategyBusiness strategy is sometimes defined simply as a firm's high level plan for reaching specific business objectives.
Strategies succeed when they lead to business growth, a strong competitive position, and strong financial performance.
When the high level strategy fails, however, the firm must either change strategy or prepare to go out of business
.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide51Contd….Business strategy is the firm's working plan for achieving its vision, prioritizing objectives,
competing successfully, and optimizing financial performance with its business model.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide52Business Strategy in a DiagramEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide53Objectives of Business StrategyThe choice of objectives is the heart of the strategy, but a complete strategy also describes specifically how the firm plans to meet these objectives. As a result, the strategy explains in practical terms how the firm differentiates itself from competitors, how it earns revenues, and where it earns margins in the following ways:
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide54Specific Objectives of StrategyStrategies reflect the firm's strengths, vulnerabilities, resources, and opportunities. And, they also reflect the firm's competitors and its marketStrategies are all about meeting objectives
An abundance of strategies reconcile into one.The
strategic frameworkEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide55EXAMPLE OF A BUSINESS STRATEGY EUI Performance GroupThis is a consulting company that provides performance improvement strategies, assessments, and training programs to mid-sized businesses. EUIPG has successfully worked with a variety of service businesses on an innovative client retention process. Some of the most positive feedback has come from accounting firms and financial planners who have used these services.
Like many consulting groups, EUIPG’s current revenues are tied to the number of hours the consultants can work, and the majority of its clients are located in a four-state area
. The EUIPG’s team wants to grow the business. After conducting a SWOT analysis and brainstorming their three-year vision, they developed the following goals and strategy to accomplish them.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide56Goals Enhance the value of the EUI Performance Group brand.Develop a revenue stream independent of consulting time that will provide 50 percent of EUI’s sales revenue within three years.Increase
the assets of the business so that in the next five years, EUI’s could be sold to another company or individual.Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide57Strategy EUI Performance Group will offer performance improvement strategies, assessments, training programs, and tools to help mid-sized businesses build sustainable futures, increase productivity, and develop staff and customer loyalty. In addition to continuing its regional consulting services, EUI PG will:Develop a software program based on EUI’s successful client retention process.Create a turnkey training program that can be used to help potential customers achieve the greatest benefits from the client retention software.
Broaden EUI’s distribution activities to market the new client retention software and training program to mid-sized accounting firms and financial planners nationwide.Implement a marketing plan to position EUI
as the expert in client retention for accountants and financial planners.Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide58EXAMPLE IIO-Foods offers a line of organic foods that range from cereal and soups to cheese and chicken. These products are currently sold at three company stores, and those products that can be easily shipped are also sold through the O-Foods Web site. In addition to the O-Foods branded products, they also carry other organic products. Each of the company stores is located in a town with a major university; both students and working adults interested in a healthy lifestyle are their target customers. O-Foods attracts and retains a talented staff who provide product information along with a high level of service to its customers—creating a strong competitive advantage
. The following goals and strategy were developed based on their SWOT analysis and three-year vision.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide59Goals Develop incentives to maintain high employee retention with a turnover rate of less than 20 percent annually for those at or above the assistant manager level and less than 30 percent for all other employees.Build the O-Foods brand.Increase profits by 15 percent each year for the next three years.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide60Strategy O-Foods will provide its customers with the freshest and finest organic food available. O-Foods’ team ensures each customer has an outstanding shopping experience by providing a high level of service and product information. O-Foods will:Implement an employee stock ownership program for those employees who have worked for the business for a minimum of one year.Develop an employee training program to further enhance all employees’ product knowledge and customer service skills.Create a unified look for the stores, the Web site, and product packaging.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide61STRATEGY CONTD…Design a marketing plan to increase purchases by current customers and attract new customers within the existing target markets.Increase operational efficiencies.Improve shipping capability so that perishable products can be ordered from the Web site and shipped anywhere in the United States. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide62DOCUMENTATION AND BOOKKEEPINGWhat is accounting for a business?Generally, Accounting is a documentation of all economic operations through records management. This activity has three main areas:
1.Bookkeeping process. Management of financial statements in accordance with established procedure
.2.Tax records.
Document of business deals with a view to building tax base and calculation, reporting to fiscal bodies.3.Management accounting
Analysis of recorded data enables the entrepreneur to evaluate the
effectiveness
of his activity, to make sound economic decisions, to plan
and optimize work processes, to monitor progress made and results achieved. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide63Key Steps for Documentation and Bookkeeping Record all economic transactions Know what kind of records to keep What and how to record
Document management Separate business checking account Balance sheet
Choose small business accounting software
Get
professional accounting support
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide64BOOK KEEPING TIPS FOR AN ENTREPRENEURWhy it's helpful and What to do?
Plan for major expenses
Track expenses.
Record
deposits correctly.
Set
aside money for paying taxes.
e. Keep
a close eye on your invoices.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide65INTRODUCTION TO SUCCESSFUL ENTREPRENEURS(WESTERN PERSPECTIVE)SELECTED STORIES
The Pierre Omidyar way.(eBay)
In 1995, a computer programmer started auctioning off stuff on his personal website. AuctionWeb, as it was then known, was really just a personal project, but, when the amount of web traffic made it necessary to upgrade to a business Internet account,
Omidyar
had to start charging people fees.
He actually hired his first employee to handle all the payment checks. The
site is now known as
eBay
.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide66The John Ferolito and Don Vultaggio way.(Arizona Green Teas)Back in the 70s, a couple of Brooklyn friends started a beer distributor out of the back of an old VW bus.
Two decades later, after seeing how well Snapple was doing they decided to try their hand at soft drinks and launched AriZona Green Tea
. Today,
AriZona
teas are #1 in America and distributed worldwide
.
The friends still own the company.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide67The Matt Maloney and Mike Evans way(Grubhub)When a couple of Chicago software developers working on lookup searches for Apartments.com got sick of calling restaurants in search of takeout food for dinner, the light bulb went off: Why isn’t there a one-stop shop for food delivery? That’s
when the pair decided to start GrubHub, which went public last April and is now valued at more than $3 billion. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide68The Howard Schultz wayA trip to Milan gave a young marketer working for a Seattle coffee bean roaster an idea for upscale espresso cafes like they have all over Italy. His employer had no interest in owning coffee shops but agreed to finance Schultz’s endeavor. They even sold him their brand name, Starbucks but today, the starbucks has grown.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide69The Phil Robertson wayThe Phil Robertson way. There was a guy who so loved duck hunting that he chose that over playing pro football for the NFL. He invented a duck call, started a company called Duck Commander, eventually put his son Willy in charge, and that spawned a media and merchandising empire for a family of rednecks known as Duck Dynasty. Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide70The Konosuke Matsushita wayIn Japan in 1917, a 23-year-old apprentice at the Osaka Electric Light Company with no formal education came up with an improved light socket. His boss wasn’t interested so young Matsushita started making samples in his basement. He later expanded with battery-powered bicycle lamps and other electronic products. Matsushita Electric, as it was known until 2008 when the company officially changed its name to Panasonic, is now worth $66 billion.Today it’s a different story
.Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide71Keys of a Successful Entrepreneur Challenge yourself and do the work you care aboutTake the risk
and believe in yourselfHave a vision and find good people
Face your fears and take action .
Manage
energy, not time.
Build a great team a hire character
Plan
for raising
capital and know your goals
Learn from
mistakes and know your customers Learn from complaints and ask for customers input. Spend wisely and understand your industryDeliver more than expectedEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide72The Steve Wozniak and Steve Jobs way.While they had been friends since high school, the two college dropouts gained considerable exposure to the computer world while working on game software together on the night shift at Atari. The third Apple founder, Ron Wayne, was also an Atari alumnus.Today, they are top on Steve jobs way software's and technologies
Identify Local Entrepreneurs around you and tell their storiesEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide73ARE YOU READY???? THANK YOU!!!!!!!!!!!!!!!!!!!!!!
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide74HAND MODEL IN ENTREPRENURISIM 1. Philosophical Statements“Life is in Phases and Men are in Sizes”. An understanding of each phrase and meeting its demands, to a large extent determines success and happiness of each person. There are THREE Phases of LIFEThere are THREE Phases of TIMELife is TIME. You hear during his/her mini lifetimeAnd Time is SUCCESS
The phases of life are depicted by the HandYour Life is in your Hands“Entrepreneurial success follows this pattern” ….Professor Prince Famous Izedomni.Entrepreneurship is a continuum. We have a social entrepreneurship at one end and economic entrepreneurship at the other end. In-between we have a variations of combinations.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide75Philosophical Underpinnings in Entrepreneurship Phases of Time and Life Phases of Time and Life Life is measured in HOURS/DAYS/WEEKS/MONTHS/YEARS Phases of Time and Life Yesterday Today Tomorrow
Past Present Future Morning Afternoon Evening 8 hours 8hours 8hours There are 24hours in a day broken down into:i. There 8hours for sleeping
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide76Philosophical Underpinnings in Entrepreneurship Phases of Time and Life contdii. There are 8hours of working/lectures/classroomYour success in life is determined by the last twoSome Computations
i. 24 hours = 1dayii. 720 hours = 1 monthiii
. 8640hours = 1 year Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide77Philosophical Underpinnings in Entrepreneurship Phases of Time and Life contdQ1. If you sleep 8hours a day, calculate how many hours /yr you have slept when you are 20yrs, 30yrs, 60yrs or 90yrs.
Q2. If you waste 8 – 4 hours in a day, how many hours (yrs
) have you wasted when you are 20yrs, 30yrs, 60yrs or 90yrs.
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide78WASTAGE
Sleeping (8hrs)
4hrs
8hrs
Age
Hours
years
hours
years
hours
years
20yrs57,600hrs6.67yrs28,800
3.33yrs
57,600
6.67yrs
30yrs
86,400hrs
10yrs
43,200
5yrs
86,400
10yrs
60yrs
172,800hrs
20yrs
86,400
10yrs
172,800
20yrs
90yrs
259,200hrs
30yrs
129,600
15yrs
259,200
30yrs
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide79Deductions on Wastagesi. If you are sleeping too much you are actually practicing how to die Death is a long or permanent sleep. Good sleep is regenerative But sleeping too much is degenerative. Degenerative sleep weakens our hands and drains the brainii. It is easy for you or any youth to waste four (4) or more hours a day. This happens when you have real dream/vision or personal plan for self- development like reading, thinking, creativity etc.
iii. If you do not occupy or fill your time with planned actions, some other persons (Friends/ called time wasters or lathers) will fill or occupy your timeEnt 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide80Deductions on wastages contdiv. When you are wasting time, or others are wasting your time, you or they are actually wasting your time or both of you are wasting your life. (Life time) Q3. [Identify your time eaters or time killers: Discuss how you can handle this] Q4. [Identify how you can invest your time wisely]
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide81PHASES OF LIFE Youth Adult hood Old Age 30 years
30 - 70 years 70years Morning Afternoon Evening Preparatory
Manifestation character family L. Counselling
Education work life Retirement
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide82Hand Model: Their Interpretation/ EntrepreneurshipPhilosophical structureYour life is in your handsThe Hand1. An instrument of protection/defense
2. An instrument of offence3. “ “ “ beauty4. “ “ “ wealth creation5. “ “ “ entertainment6. “ “ “ Feeding phases of life
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide83Hand Model: Their Interpretation/ EntrepreneurshipPhilosophical structure contd Fig.1. Covered hand (New baby) fig. vi. Cupid hand Fig.2. Sucking hand (Babe) fig. vii. Pointing Fig.3.Washing the belly (Adult) fig.iii. Folded palm
Fig.iv. flat/opened (dead man) Q5. How do we relate the hand model to Entrepreneurship?
Q6. What are the FOUR (4) keys to Entrepreneurial success in life? Prove this quantitatively
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Slide84BASIC TIPS A – Z1- 26
SKILS = 82%KNOWLEDGE =96%
HARDWORK = 98%
ATTITUDE = 100
%
Ent 221: Introduction To Entrepreneurial Studies II by Kifordu A.A. is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.