creativity and innovation the ability to organize resources the willingness to accept risks and...
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Creativity and Innovation
The Ability to Organize Resources
The Willingness to Accept Risks and Failures
The Entrepreneurial Spirit
Entrepreneur – Advantages
• Be Your Own Boss – You Make the Rules• Unlimited Income Potential• If Successful, Access to Unique People
and Places• Satisfaction of Creating and Building
Something Unique• Life Long Learning – Always Learning
Something New and Interesting
More characteristics …Achievement motivationOpportunisticAlert to business opportunitiesInnovative and creative, ideas personUtilize a variety of sources of financeHigh profile image-makerRestless, adventurousIntuitiveAgent of change, proactiveSelf-reliantStrong sense of self-beliefAnalytical, assesses risks realisticallyGood communicator
Creativity BlockersThe Right AnswerThat’s Not LogicalFollow the RulesBe PracticalAvoid Ambiguity
• To Err Is Wrong
• Play is Frivolous
• That’s Not My Area
• Don’t Be Foolish
• I’m Not Creative.
Opportunity Selection Funnel
Entrepreneurial MisconceptionsMost Businesses Do Not SucceedYou Need a Lot of Money to Start a
BusinessWebvan – Started With $375 Million and
Is Now Out of BusinessJohn McConnell Started Worthington
Industries With $500 and Built a Successful Fortune 500 Company
What Does It Take to Succeed?Extreme Determination
Never Give Up!Good Sales Skills
• Recruiting Employees• Gaining New Customers• Persuading Partners and Suppliers to Do What
You Want
New Businesses That Fail Usually Fail Because of Lack of Revenue
Good Financial ControlsAbility to Build and Motivate a Team
How to Get StartedPick a Business
• Should Be in a Growing Industry• It Helps If You Already Know Something About It –
but This Is Not CriticalGo to Work for a Similar Business Learn Everything You Can About the Business
and the IndustryConsider a Franchise for First Business or Pick
a Partner That Has Some Business ExperienceGo Ahead and Do It – Worst That Can Happen
– You Can Fail but Learn a Lot – Then Start Another One
Steps to start a businessChoose a Business Idea (mainstream,
niche, or entrepreneurial?)Evaluate the Business Idea
Pre-existing business ideaPreliminary environmental analysisBusiness idea establishedClearly define business idea
Assess Business OpportunitiesDefine Business ObjectivesPrepare the Feasibility Study
Steps to start a business (2/2 Environmental Information: factual
evidence about existing and likely future supply and demand conditions
EI collected from primary and secondary research
Defining the business:Business activity descriptionCustomer geographic areaBroad business offer (product, price,
distribution, image, promotion)Competitive advantages
Assessing Business Opportunities Choose a Business Location (4 steps)1. Size of premises
Aspects: floor space, dimensions, shape Components: stock, display, reception, staff amenities,
office, production, parking2. Type of Premises (home, industrial, commercial)3. Select general area
Convenience (target, labour, transport, supply, home) Economic condition (growth, stability, diversity,
competition, population, wealth) Image (housing conditions, civic facilities,
attractiveness)4. Select specific site address
site history, business neighbour compatibility, access, visibility and exposure, legal, size, condition, internal facilities, cost)
Choose an Entry MethodStarting up
Increasing business activity and demandUndersupply of goods/servicesNew product or service
Buy existing business Increasing business activity and demand Increasing customer demand
Obtain franchise outletEstimate Establishment Costs
Furniture & fittings, equipment, office machines, vehicles, repairs, renovations, preparations, utilities
Borrowed = Tot. est. cost – Tot. available personal cap.
Estimate Borrowing Requirements
Mind Mapping
ReferencesDollinger, M.J., Entrepreneurship: Strategies and
Resources, 2nd Ed., Prentice-Hall, NJ, 1998.Ebert, R.J., Business Essentials, Prentice-Hall, New
Jersey, 2000.Kuratko, D.F., Entrepreneurship: A Contemporary
Approach, 4th Ed., Dryden Press, Or, 1998.Peters, R.D., Entrepreneurship, 4th Ed., McGraw-Hill,
USA, 1998.Thomas, R.J., New Product Success Stories: Lessons
from Leading Innovators, JWS, NY, 1995.Timmons, J.E., New Venture Creation : A Guide to
Entrepreneurship, 2nd Ed., Irwin, Ill, 1985
