1. FLOW OF TUTORIAL
 TOPIC 4: Ventures Environment Assessment
 TOPIC 5: Business Plan
 TOPIC 6: Starting a new entrepreneurial
ventures

2. TOPIC 4
Ventures Environment Assessment
 Usually discussed in relation to marketing
and economic management.
 This chapter discuss about the importance of
environment in providing opportunity and
threat to new ventures creation

3. MIND MAP
 Component of ventures environment
 Macro environmental influence
 Micro environment
 Organization internal environment
 Identify business opportunity
 Evaluation of business opportunity

4. 4.1 The components of
ventures’ environment
 External environment
 Macro Environment
 Politics & Legislation
 Economy
 Social-Cultural
 Technology

5. 4.1 The components of
ventures’ environment (cont)
 Micro Environment
 Customers
 Competitors
 Suppliers
 Financial Institutions
 Non-government organizations
 Government agencies

6. 4.1 The components of
ventures’ environment (cont)
 The internal environment
 Organizations structure
 Culture
 Resources

7. 4.2 Macro Environmental
Influence
 4.2.1 Political and Legislative
 Trade barriers and tariffs
 Political risks
 Trade agreement
 Taxation
 Regulation

8. 4.2 Macro Environmental
Influence (cont)
 4.2.2 Economics
 Questions to consider regarding new ventures
(please refer to page 38)
 4.2.3 Socio-cultural
 Demographic changes
 Social trends
 4.2.4 Technological
 Pure invention
 Process innovation

9. 4.3 Micro Environment
 Consumers
 Competitors
 Suppliers
 Financial institutions
 Government agencies
 Non-government organizations

10. 4.4 An organization’s internal
environment
 Resources
 Structure
 Cultures

11. 4.5 Identification of business
opportunity
 4.5.1 Recognition of an opportunity: Phase of
a process perspective on entrepreneurship
 Sources of opportunity
 The unexpected
 The incongruous
 The process need
 Industry and market structures
 Demographics
 Change in perception
 New knowledge

12. 4.5 Identification of business
opportunity (cont)
 4.5.2 E-Commerce as a New Opportunity
 Your feedback
 Technology has become an important part of our lives.
Think of how e-commerce has benefited your lives?

13. 4.6 Evaluation of a business
opportunity
 4.6.1 The magnitude of opportunity
 4.6.2 Sources of opportunities: the origins of
new ventures
 New product or service
 New way of organizing
 New market
 New method of production
 New raw material
 4.6.3 Opportunities and new firms

14. TOPIC 5 Business Plan
 MIND MAP
 What is a business plan?
 The importance of business plans
 What needs business plans?
 Essential elements of good business plans
 Guidelines in preparing good business plans
 Pitfalls to avoid in planning

15. 5.1 What is a business plan
 A written document which describes in detail the
overall plans of a business in which an entrepreneur
aims to get involved
 Purposes:-
 Forces to arrange their thought in a logical and structural
order
 Create a business framework by defining activities,
responsibilities and objectives to be achieved
 Encourage in stimulating reality and anticipate pitfalls
before they occur.
 Develop strategies to meet those objectives
 As a working action plan or guidelines
 Enabling in identifying constraints

16. 5.2 Importance of business
planning
 Increase opportunity for success
 Develop mission business
 Determine the main competitor/s
 Determine the right way of managing the
business
 Increase the stakeholders confidence
 Determine barrier in business
 As a performance tool

17. 5.3 Who needs business
planning?
 The management team
 The shareholders
 Bankers or creditors
 Customers
 Suppliers
 The employees

18. 5.4 Essential elements of a
good business plan
 Executive summary
 Market analysis
 Marketing and sales strategies
 Services or product line
 Organization and management
 Funding request
 Financials
 The appendix

19. 5.5 Guidelines in preparing
business plans
 Keep business plan short
 Be focused
 Reveal people involved and their roles
 Avoid the use of Jargons
 Information should be based on study
 Be realistic and objective

20. 5.6 Pitfalls to avoid in planning
 No realistic goals
 Failure to anticipate obstacles
 No commitment or dedication
 Lack of business or technical experience
 No market niche

21. TOPIC 6 Starting a new
entrepreneurial venture
 This topic discuss about types of ventures
that the entrepreneur can start the legal
structures for new business ventures and
sources of capital for entrepreneurs

22. 6.1 Types of ventures
 Ventures
 Start-up
 Buying an existing business
 Franchising

23. 6.2 Start-up
 Definition of start-up
 “Start from scratch”
 Phases in start-up
 Prestart-up phase
 Start-up phase
 Post start-up phase
 Advantages & Disadvantages of start-up
 Refer to page 68

24. 6.3 Buying an existing
business
 Definition of buying an existing business
 Buying a business that is currently running
 Steps and processes in buying an existing business
 Personal priority
 Business opportunity
 Reviewing potential target
 Arrangement of financing
 Conduct due diligence
 The formal agreement
 Ready for business

25. 6.3 Buying an existing
business (cont)
 Advantages of buying an existing business
 Refer to page 72
 Disadvantages of buying an existing business
 Refer to page 73

26. 6.4 Franchising
 Definition of franchising
 “…any arrangement in which the owner of
trademark, trade name or copyright has licensed
others to use it and sell its goods or services”
 Advantages:-
 Training and guidance
 Brand name appeal
 Proven track record
 Financial assistance

27. 6.4 Franchising (cont)
 Disadvantages:-
 Franchise fee
 Franchisor control
 Unfulfilled promise

28. 6.5 Legal structures for new
business ventures
 Sole proprietorship
 Partnership
 Corporation
 Private corporation

29. 6.6 Sources of capital for
entrepreneurial activities
 Personal funds
 Family and friends
 Retirement accounts
 Banks and other financial institutions
 Government loans
 Stock market

30. THE END