Download - Starting and Managing Your Business 2
-
8/6/2019 Starting and Managing Your Business 2
1/27
Small andMediumEnterprises
DevelopmentAgency ofNigeria
-
8/6/2019 Starting and Managing Your Business 2
2/27
CONTENTS Introduction Entrepreneurial traits Entrepreneurial Skill Validating the Business idea Validating my Resources Sources and uses of fund Sources of Assistance Pre-Investment Proposal Business Plan
Path to Business Success Conclusion
-
8/6/2019 Starting and Managing Your Business 2
3/27
INTRODUCTION
If you have decided to be an entrepreneur you have decidedto create a new business venture, to work for yourself, to beyour own boss.
A successful self employment depends upon, having an ideawhich will translate into a product or service which acustomer will need and be prepared to pay for.
A business which satisfies you in terms of allowing you tomake your own decisions or makes you a lot of money orprovides you with a job you really like doing
Having the right skills and ability both technical andmanagerial to run the business.
Having or obtaining the resources necessary to produce yourproduct or services
-
8/6/2019 Starting and Managing Your Business 2
4/27
Introduction Contd
Do you have a mental picture of who your
customers are likely to be? What of your
competitors? How are you going to beat
them? You need to plan because starting a
business without adequate planning is like
driving a car without headlight at two
hundred kilometers per hour in the middle ofa rainy night.
-
8/6/2019 Starting and Managing Your Business 2
5/27
ENTREPRENEURIAL TRAITS
As an entrepreneur you perform two distinct yet closelyintertwined functions: Entrepreneurship and management.
Entrepreneurship is the quality which enables people to starta new business or vigorously and innovatively expand an
existing one. There are some basic character traits existents in an
entrepreneur that enables him to seek-out businessopportunities, conceptualize and initiate business projectsgather the physical, financial and human resources needed to
start the business, set goals for themselves and theirenterprises and guide the enterprise and its people toaccomplish the goals.
-
8/6/2019 Starting and Managing Your Business 2
6/27
Entrepreneurial Traits contd
Take a minute and objectively rate yourself with the profile of an entrepreneur below
Self Confidence -Belief in your ability of Independence
-Independent
-Optimism
Strong will power -persistence and perseverance
-Determination
Task/Result oriented -Achievement oriented
-Hard work, drive, energy- Initiative
Risk taker -Like challenges
-judicious risk taking ability
Leadership -Good Communicator
- Gets along well with others
-Responsive to suggestions
Originality -Innovative, creative
-Resourceful
-Versatile
Future Oriented -Foresight, vision, perceptiveness
-
8/6/2019 Starting and Managing Your Business 2
7/27
Entrepreneurial Skill
Technical
Creative
Human
Innovative
Design
Conceptual
Management
Marketing
-
8/6/2019 Starting and Managing Your Business 2
8/27
Validating Your Business Ideas
The most common and reliable sources of Business ideas are educational skills andworking/Environmental experiences in ones life. The basic foundation for any successful venture istherefore the self conviction on the part of the entrepreneur that success can be achieved.
Developing appropriate and harvest answers to the following under listed questions would enable youvalidate your business idea
Is it practical?
Is it legal?
What service or product will I sell
Does it meet a need(s) of other people
Are they willing and able to pay for it.
Can it be produced at the right quality and in the required quantity
Can it be produced in am acceptable form as required by those wanting it.
Has it linkages possibilities
Can it meet the Constant changes in users, need and taste
Is there a prototype of the product existing
What is your Business advantage over existing firms
What niche or gap would my business fill
Can I create a demand from my business
-
8/6/2019 Starting and Managing Your Business 2
9/27
Validating Your Business Ideas
(Contd) The Idea validation stage of your project is the most
critical stage. Any mistake or misjudgments at thisstage may lead to colossal loss of fund in future. Youneed to collect a lot of data and information about
the project at this stage As Consultant we can be of immense assistance to
you. We would train you to improve yourentrepreneurial/management skills and also help youin gathering all the data needed to validate yourbusiness idea
-
8/6/2019 Starting and Managing Your Business 2
10/27
Validating My Resources
After validating your business idea the next stage is tovalidate your resources what resources do you need totranslate your idea into a business. These resourcesinclude:
Business Premises
Raw materials
Machinery/ Equipment
Personnel
Funds
How much of theses resources have you got now and howmuch of them do you need. e.g
-
8/6/2019 Starting and Managing Your Business 2
11/27
Business Premises
Are you renting or Building? What is yourproduct production requirement? Is there anyregulatory requirement in the sitting of the
project. Have your proposed businesspremise taken into consideration NAFDAC orSON requirements, which is more economicalto you at this stage of your business, to build
or to rent.
-
8/6/2019 Starting and Managing Your Business 2
12/27
Raw Material
Many a times people assure through albeit wrongly that thereis an abundant supply of the raw material for their project.There is the need to take a list of the required raw material foryour project. Are they seasonal goods? Are they always
available, is the one in your locality of the right quality andquantity for your business. What of cost? Are they bothavailable and affordable? Many small business ventures havecollapsed due to miscalculation of the availability of their rawmaterial. Information on raw material can be obtained from
RMRDC
-
8/6/2019 Starting and Managing Your Business 2
13/27
Marketing
It is very vital to keep in mind that your business begins and ends with themarketplace. It begins by identifying customer needs and it ends with thesatisfying of those needs and it ends with the right time and at the right price. Aprice that must also give an adequate return on your investment.
As a prospective new enterprise, have you taken a minute to work out who areyour major competitors? What is their market share? How do their products /services compare with yours? How do you anticipate that they will react to a newentrant into their market? How can you beat them?
What are the unique selling points that differentiate your product from theirs?Have you done any demand assessment of your product.
Who are your customers? Do you have several or will your sales be dependent onone or two. How do you intend to sell your products or services? Who will do theselling? Will you be adverting, calling on prospective customers or general selling
in the market. product
Price
Place
Promotion
-
8/6/2019 Starting and Managing Your Business 2
14/27
-
8/6/2019 Starting and Managing Your Business 2
15/27
Sources of Assistance (Contd)
B STATE GOVERNMENT AGENGIES
State Ministry of Commerce and Industry Information on
the states economic priority projects and feasible MSMEs
in the State.
State Investment corporation Agencies Information on
financing and available extension service facilities in the
state.
c. NON-GOVERNMENTAL ORGANIZATION
NASSI
MAN
NASME
-
8/6/2019 Starting and Managing Your Business 2
16/27
Production Management
Production management is the process of the
effective planning and control of the
operations of that section of an enterprise
devoted to transforming materials intofinished goods.
Production planning-Factory location and
layout
Production Strategy
Production Policy
-
8/6/2019 Starting and Managing Your Business 2
17/27
Human Resource Management
The human resource is the greatest asset in
any enterprise. It is the management of
people within the enterprise towards the
attainment of the goals and objectives of thatenterprise.
It entails: Recruitment, Placement and
induction, Manpower planning, Training anddevelopment, Reward system, performance
appraisal, Industrial democracy , etc
-
8/6/2019 Starting and Managing Your Business 2
18/27
Financial Management
Financial management is that managerial
activity(interplay) which ensures that financial
resources are obtained and utilized in the
most prudent way for the attainment of theobjectives of the enterprise.
Financing Decision
Investment Decision
Dividend Decision
-
8/6/2019 Starting and Managing Your Business 2
19/27
The Ten Commandments of Small-
Business Finance
Thou shall set clear financial goals
Thou shall prepare personal financial
statement
Thou shall prepare business financial
statements
Thou shall support projections of future cash
flows with sound logic
Thou shall decide upon a target capital
structure
-
8/6/2019 Starting and Managing Your Business 2
20/27
The Ten Commandments of Small
Business Finance Contd
Thou shall recognize all current sources of
financing
Thou shall consider alternative sources of
financing
Thou shall recognize exposure to business risk
Thou shall ensure that the financial plan fits
with the overall business plan
-
8/6/2019 Starting and Managing Your Business 2
21/27
-
8/6/2019 Starting and Managing Your Business 2
22/27
The Business Plan
Management
Manpower Requirement
Product or Services Market and Marketing
Production Process
Financial Analysis Profitability Analysis
Evaluation of the Project
-
8/6/2019 Starting and Managing Your Business 2
23/27
Path to Business Success
Knowledge
Skill
Motivation Ability
Resources
Delighted Customers Innovation
-
8/6/2019 Starting and Managing Your Business 2
24/27
Conclusion
Working for yourself amounts to being your
own boss. Your destiny and fate lie with you
and you alone. There is no one to tell you
what to do, how to do it, when, where or forwhom to do it. Remember that once on your
own, you are not likely to be able to do
everything you want to . You have to enjoy what you are doing and
strive to put in your best at all times.
-
8/6/2019 Starting and Managing Your Business 2
25/27
Conclusion Contd
Being on you own amounts to you either sink
or swim. You have to be every where at every
time, doing the right things at the right time
delighting customers by exceeding theirexpectations.
-
8/6/2019 Starting and Managing Your Business 2
26/27
Conclusion Contd
The time is now for you to make active
positive use of your instincts, insight and
perceptions to manipulate and manage them
to propel you to being an entrepreneur-inspiteof the obvious dangers and challenges.
You dont make an omelet without breaking
an egg. We therefore crave your indulgence totake a dive into the waters of
entrepreneurship and be your own boss.
-
8/6/2019 Starting and Managing Your Business 2
27/27
WELCOME
THEN GET STARTED! AS THERE
IS NO TIME TO PONDER.
WELCOME TO THE WORLD OF
ENTREPRENEURS