This chapter discusses several key factors for entrepreneurs to consider when starting a business: markets, individual interests, capital, skills, suppliers, manpower, and technology. It also provides suggestions for developing business ideas such as looking at other successful businesses, responding to problems, starting home-based businesses, and linking resources. The chapter emphasizes the importance of defining problems, planning research, gathering and analyzing data, and implementing and evaluating decisions.
3. MARKETS
- This refers to the number of
prospective buyers,
competitors, the price and the
quality of goods and services
that have to be analyzed.
4. INDIVIDUAL INTEREST
- Business interest of
individuals should match
business opportunities.
5. CAPITAL
- The serves as the fuel that
keeps the business operating.
6. Skills
- The entrepreneur should have
the proper skills in the
business he is going to
undertake.
7. SUPPLIERS OF INPUTS
- It is important that there are
steady supplier of raw material
and other inputs in business.
8. MANPOWER
- The success of ant business
also depends on the efficiency
of its employees.
9. TECHNOLOGY
- Entrepreneurs should be aware
of the presence of technology
to improve their products or
services or introduce new
innovation.
10.
11. 1. Look at other successful
businesses/entrepreneurs.
Looking up at other
entrepreneurs as a role model
that could be an inspiration,
by doing what they have done or
do it even better.
12. 2. Respond to a problem area.
The solution to a problem might
be transformed into a business
venture.
13. 3. Home-Based Business Option.
These must not be taken for
granted, for there are some big
businesses that started as a
small business at home.
14. 4. Linkage of Resources. The
entrepreneur can produce his
own input instead of buying
them.
15.
16. Defining the problem
Making a preliminary
investigation
Planning the research
Gathering the data
Analyzing the data
Reaching a conclusion
Implementation and evaluating
decision
19. INTRODUCTION
- If consumer awareness and
acceptance of product are low,
launch through the use of
marketing activities, which make
the profit low due to cost of
development and marketing
activities.
GROWTH
-To meet the growing demand,
product distribution is expanded.
Sales rise rapidly as product
becomes popular.
20. . MATURITY
- Sales are still rising, but rate
of increase has declined. At the
latter part, a sale reaches its
peak, while profit begins to
fall.
DECLINE
- There is a sharp fall in sales
volume, while profit curve
becomes almost flat or
horizontal.
21.
22. The service-based business
- Common examples of service Based
businesses are consultancy,
barber shops, repair Shops,
beauty parlours, care giving,
designing works, rendering
Professional services, such as
engineers, dentistry, medical
Doctor, and others where there is
no need to manufacture something.
23. Trading or product-based business
- This is a buy-and-sell
transaction that can happen in
your storehouse, showroom, or any
other structure less environment.
An example of this is putting up
a grocery store, bakery products,
or general construction
materials.
24. Manufacturing business
- This is a manufacturing or
production based business by
creating a product. Manufacturing
can be as simple as creating
hand-painted T-shirts or ceramic
vases and now, the most popular
is candle making, which can be
done in your home.
25. Licensed business opportunities
- If you find some difficulties in
launching a product or service,
it is a good idea to look for
licensed business opportunities.
Franchising is a business format
somehow very similar to licensed
business operations.
26. Distributorship
- This is where an independent
entrepreneur, company, or
individual enters into an
agreement or contract to offer,
sell, or distribute a particular
product, but is not entitled to
use the manufacturer's trade name
as part of its own trade name.
27. Rack Jobber
-This involves an agent or buyer
entering an agreement with a
parent company to market its
goods to various stores by means
of strategically located store
racks.
28. Wholesalers
- These sell the product of
manufacturers or producers to
retailers and other distributors
who have direct dealings with the
end users or customers
29. Subcontracting
- This is a familiar form of
business format in the garments
sector, as well as the shoe
industry. This involves signing
up an arrangement with a major
producer to complete a set of
product components on a pre-
agreed price.
30. Vending machines routes
- These are placed in various
places or locations. The
entrepreneur needs to have
substantial capital Outlay as he
had to pay for the vending
machine, including using the
stocks to be vended.
31.
32. Is the process of coming up
with an idea. It is using
creativity and question like
"what if?"
This should be the first
investment of anyone who seeks
to be an entrepreneur, such the
idea has to be new or if not,
should be innovative.
33. a). Needs/ wants drives
b). Time - saving drives
c). Money saving
d). Unique or incorporating
strong competitive advantages
e). Link to personal interest,
preferably passion.
34. Recognizing the needs
Improving an existing product
Recognize trends
Be aware of everything
Questions and assumptions
Naming it, then, develop it
35. a). Do not let your idea follow
money, let money follow your
ideas.
b). See yourself as problem solver
c). Use research as a weapon
against failure
d). Make sure your idea has
longevity
36. e). Take a risk on you idea
f). Test your idea against the
past, present, and future
g). Know the idiosyncrasies of
your market
39. Creativity, Innovation and
entrepreneurs are inseparable
creativity is an essential part
of innovativeness the starting
point of a process which is
skilfully managed and brings an
idea into innovation
40. a. Freedom- A sense of control over
one's work ideas
b. Good Project Management- a
manager serves as good role
model
c. Sufficient Resources - access to
necessary resources
d. Encouragement- management
enthusiasm for new ideas
41. e) Various Organizational
Characteristics- a mechanism for
considering new ideas
f) Recognition- a general sense that
creative work will receive
appropriate feedback, recognition and
reward
g) Sufficient time- time to think
creatively about problem
42. h) Challenge - a sense of challenge a
rising from intriguing nature of the
problem itself
i) Pressure - a sense of urgency that is
internally generated from competition
as a personal sense of challenge
j) Outside of organization - from a
general desire to accomplish
something important.
43.
44. Innovation is doing something
different . It could be
introducing either something
new or different. Innovative is
a characteristic of an
individual, team, or
organization. Create ideas and
develop them to usable products
or services .
45. 1. EFFECTING A NEW POLICY-
creating change or orientation or
direction.
2. FINDING NEW OPPORTUNITIES-
developing an entirely new
product or opening new market .
46. 3. DESIGNING NEW STRUCTURE-
changing the formal structure,
reorganizing or introducing a new
structure.
4. DEVISING A FRESH METHOD-
introducing a new process,
procedure or technology for
continued use.
47. a) Valued place of creativity and
innovation in general;
b) An orientation towards risks
c) A sense of pride in the
organization and it's members;
and the enthusiasm about what
they are capable of doing; and
d) An offensive strategy of taking
the lead towards the future.
48. Innovation is not only for a
change, but also for the search
in excellence
Not only in producing a product,
but also in the form of
innovative system and services.
Entrepreneur has a variety of
option in deciding what kind of
business he is going to put up.
49. He can go to market scanning to
see what is needed.
He should not limit himself in
going into manufacturing of sari-
sari store or market niche bur
developing similar product or
service should examined.
50. Buying franchise
Being subcontractor
Innovating an existing product,
system or services.
Sponsoring a start up business
Acquire an on going business.
