INTRODUCTION TO ENTREPRENEURSHIP

Prepared by:

• Vivek Hinduja

MEANING

• A person who organizes and operates a business or businesses, taking on financial risk to do so.

MEANING

• An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.

BASIC REQUIREMENTS

Master the art of negotiations

Negotiation skills are used daily.

Create a win-win situation.

Win-Win arrangements is the basis for building long-term and profitable business relationships.

Remember, it's all about the customer

Your business is all about your customers, or clients,

After all, your customers are the people that will ultimately decide if your business goes boom or bust.

Everything you do in business must be customer focused, including your policies, warranties, payment options, operating hours, presentations, advertising and promotional campaigns and website.

Build a top-notch business team

No one person can build a successful business alone. It's a task that requires a team that is as committed as you to the business and its success.

Your business team may include family members, friends, suppliers, business alliances, employees, sub-contractors, industry and business associations, local government and the community.

Invest in yourself

Read business and marketing books, magazines, reports, journals, newsletters, websites and industry publications.

Attend business and marketing seminars, workshops and training courses.

In short, never stop investing in the most powerful, effective and best business and marketing tool immediate disposal- YOURSELF

RISKS OF BEING AN ENTREPRENEUR

Poor financial controls

Competing with other businesses merely on selling price

Consumes the time you devote to family and friends.

ENTREPRENEURIAL PROCESS

THINK OF A GREAT IDEA

Service people need or a product that would make life easier or both.

Remember, ideas don’t count, it’s what you do with them that counts.

“No idea is original”

BUSINESS PLAN

Product description: develop your product. What will it look like? What materials will you need? Make your product eye-catching.

Market Analysis: Who is your market? Where do they shop? Where are they located?

BUSINESS PLAN

Competition: Who is your competition? What are their strengths? How will you beat them?

Marketing: How will you market your product? What is your tagline?

Sales: Where will you sell? When will you sell? What is your estimated sales forecast?

BUSINESS PLAN

Manufacturing: How do you make your product? What materials do you need to make your product? What is your COGS (cost of goods sold)?

Finance: how much money do you need to start your business? What is your gross profit?

GET INVESTORS

Make a presentation or something of the sort explaining why your product is the best, including each part of your business plan and present it to Venture Capitalists.

If you can get the business started without spending a lot of money, that might be your best route.

SELLSell and distribute your product. If you're getting revenue, then you're in business.

If you are unable to generate revenue, then you can’t survive in the market.

NETWORK Hang out with entrepreneurs. By meeting entrepreneurs socially, you gain contacts and hear about opportunities.

IMPORTANCE OF ENTREPRENEURS

CREATE JOB OPPORTUNITIES

CREATING WEALTH (for themselves and others)

HELPS LARGE SCALE FIRMS