Entrep Chap 1

Entrepreneurship

process of designing and running a business

characteristics of entrepreneurship

strong networking abilities, creating new ventures, risk assumption, profit potential, self motivation, hard work and commitment, reaping of rewards

Importance of entrepreneurship

innovation, growth, creating job opportunities, enhances standard of living, promotes research & development

benefits of entrepreneurship

opportunity to make a difference, opportunity to reach your full potential, opportunity to reap extraordinary profits. societaly responsibility and recognition, opportunity to engage in their work of choice

Traits of an entrepreneur

self confident and optimistic, able to take calculated risk, respond positively to change, flexible and able to adapt, knowledgeable of markets, able to get along well with other, independent, high level energy

Business plan

is a document that describes the various external and internal elements involved in starting a business or expanding an existing venture

Business plan part 2 desc

serves as a guide for short term and medium term decision making and managerial action

Importance of BP

viability of proposed/existing business venture, mobilizing the resources needed, tool in helping get financing for the business

B.P. is important to entrep (2)

real road map, anticipate potential business risk

What information is needed for the major sections of a business plan?

Market information, information about operation, financial information

Market information

what are their demographic charactersitics

information about operation (7)

location, service operations, equipment and/or furniture needed, space requirements, labor requirements, raw materials needed or potential supplier, utilities

financial information

the business plan wil require the entrepreneur to include a list of all sources

Major sections of a business plan (12)

Introductory page, executive summary, environmental and industry analysis, description of the business, production plan, operations plan, marketing plan, organizational plan, financial plan, assessment of risk, timetable, appendices

Introductory page

business name and address, nature of the business

Executive summary

highlight of the business plan

Environmental and industry analysis

conditions of the general environment

Description of the business

background of the business

production plan

suppliers of raw materials

operation plan

description of the company's operators

marketing plan

describes the target market for the new product or service

organizational plan

partnership, organizational plan

financial plan

cash flows, company assets

assessment of risk

expected hurdles

timetable

schedule

appendices

pricelist of suppliers, profile of competitors

How to present a business plan

Tell a compelling story, exhibit confidence and professionalism, cover the basics, adopt a cooperative attitude when answering questions

Marketing plan

document containing marketing strategies