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
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
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