• EDUCATIONAL PUBLISHING •

Tel: +27 21 531 1270

Entrepreneurship - Beyond the Business Plan

beyond the business planContents

Chapter 1

The Challenges of Entrepreneurship

Page 1

1.1

The Entrepreneur

1

1.2

The Intrepreneur

2

1.3

The Role of entrepreneurs and intrepreneurs

2

1.4

Personal qualities of the entrepreneur

3

1.5

Personal resources of successful entrepreneurs

6

1.6

Economic importance of the entrepreneur

8

1.7

The merits of entrepreneurship

8

1.8

Why entrepreneurs fail

9

1.9

How to avoid pitfalls

11

     

Chapter 2

Dynamic Business Environment

Page 15

2.1

Why the interest in small business

15

2.2

Entrepreneurial Profiles

17

2.3

The power of the small business

21

2.4

Entrepreneurial transition

21

2.4.1

Growth readiness

22

2.4.2

The quest for growth

24

2.4.3

Planned Growth

25

2.5

Change

26

2.5.1

Causes of change

26

2.5.2

Meeting the challenge of change

28

2.5.3

Change management process

29

2.5.4

Resistance to change

30

2.6

Characteristics of a business that is Future-orientated

32

     

Chapter 3

The Study of Business Management

Page 38

3.1

The study of business and it’s management

38

3.1.1

Introduction and description

38

3.1.2

Business - what is being studied?

38

3.1.3

Business - why study it?

39

3.2

Development business education

41

3.3

The study of business as an “Independant Science”

42

3.3.1

Classifying Sciences

42

3.3.2

The study of business and other sciences

43

3.4

Organisation of study material

44

     

Chapter 4

Creativity and Idea Generation

Page 46

4.1

Ideas, innovations and creativity

47

4.2

Sources of new ideas

49

4.2.1

Everyday activities

49

4.2.2

From other sources

50

4.2.3

Identifying generic needs and standard products

51

4.3

Methods used to generate ideas

52

4.3.1

Manipulating existing product or services

53

4.3.2

Attribute analysis

53

4.3.3

Problem redefinition

53

4.3.4

Forced connections

54

4.3.5

Mind mapping

54

4.3.6

Brainstorming

54

4.3.7

Metaphorical analogy

55

4.4

Protecting your ideas

56

4.5

Turning ideas into opportunities

56

4.6

Identifying opportunities

57

     

Chapter 5

Market Feasibility Study

Page 62

5.1

Importance of market feasibility

62

5.1.1

Product description

62

5.2

The Market

64

5.2.1

The market as a concept

64

5.2.2

Market segmentation

65

5.2.3

Market share

66

5.3

Marketing information

70

5.3.1

Collection of information

71

5.3.2

Methods of collecting primary data

71

5.3.3

Developing a questionnaire

74

5.3.4

Collecting secondary data

75

     

Chapter 6

Financial feasibility Study

Page 83

6.1

Financial feasibility study

83

6.1.1

Why you need financial feasibility study

83

6.2

Start-up costs

85

6.2.1

The assets of your business

85

6.2.2

Calculating what you need to start up a business

88

6.2.3

Getting finance for your assets

90

6.2.4

Offering security

91

6.3

Calculating sales, profit and break-even point

91

6.3.1

Sales scenarios

91

6.3.2

Factors that can influence your sales scenarios

92

6.3.3

Profit mark-up percentage

93

6.3.4

Weighted average gross profit percentage

95

6.3.5

Break-even point

96

     

Chapter 7

The Business Plan

Page 107

7.1

The parts of a business plan

107

7.1.1

Cover page

107

7.1.2

Summarise your business idea

108

7.1.3

Describing your business

108

7.1.4

The marketing plan of your business

109

7.1.5

The management plan of your business

109

7.1.6

The financial plan of your business

109

7.1.7

Other information to include in a business plan

110

7.2

Where to find help when drawing up a business plan

110

7.3

Choosing a name for your business

112

     

Chapter 8

Marketing Plan

Page 115

8.1

Product

116

8.1.1

Trademarks

116

8.1.2

The importance of packaging

117

8.1.3

Type of packaging

118

8.1.4

Labels

119

8.2

Pricing of products and services

119

8.2.1

The importance of pricing

120

8.2.2

Effective pricing methods

121

8.2.3

Turning slow-moving stock into cash

123

8.2.4

Pricing by the retailer

124

8.2.5

Pricing by the manufacturer

125

8.2.6

Pricing by a service business

126

8.3

Promotion

129

8.3.1

The objectives of advertising

129

8.3.2

Selecting advertising media

130

8.3.3

Developing an advertising plan

132

8.3.4

Measuring the result of advertising

133

8.3.5

Preparing an advertising budget

135

8.3.6

Sales promotions

136

8.3.7

Public relations

138

8.3.8

Personal selling

138

8.3.9

Sales letters

140

8.3.10

Customer relations and service

140

8.3.11

After sales service

141

8.4

Place

142

8.4.1

Location

142

8.4.2

Choosing and improving your business premises

145

8.4.3

Layout

148

     

Chapter 9

Management Plan

Page 155

9.1

Forms of ownership

155

9.1.1

A Sole Proprietor (one-person business)

155

9.1.2

Partnerships

156

9.1.3

A private company

156

9.1.4

A Close Corporation CC

158

9.2

Deciding on a form of ownership for your business

158

9.3

Legal formalities when starting a business

159

9.4

Getting a trading licence

160

9.5

Your own involvement with the business

161

9.6

Your personal responsibilities

162

9.6.1

Employment form

162

9.6.2

Job description form

163

9.7

Your operation plan

164

9.8

Your equipment/machinery analysis

164

9.9

Analysing your suppliers

164

9.9.1

Selecting your suppliers

165

9.9.2

Finding your suppliers

165

9.10

Office Administration

166

9.10.1

Keeping records

166

9.10.2

Filing equipment and filing methods

166

9.10.3

Office equipment

166

     

Chapter 10

Financial Plan

Page 173

10

Sources of finance

173

10.1

Capital

173

10.2

Equity financing

174

10.2.1

Type of equity financing

174

10.2.2

Debt financing (borrowed capital)

176

10.3

Financial management

178

10.3.1

Making financial plans

178

10.4

The projected income statement

182

10.5

Asking for capital

184

     
 

Business Plan Layout

Page 189

     

Chapter 11

Starting a New Business

Page 196

11.1

Entry strategies

196

11.2

Starting a new business

197

     

Chapter 12

Buying an Existing Business

Page 200

12.1

Advantages of buying an existing business

200

12.2

Disadvantages of buying an existing business

201

12.3

The business buying process

203

12.3.1

Analyse your own skills and interests

204

12.3.2

How do you find potential businesses for sale?

204

12.3.3

Evaluate options and choose the best one

205

12.3.4

Closing the deal

206

12.4

Evaluating an existing business

206

12.5

Determining the value of a business

213

12.5.1

Valuation of tangible assets

215

12.6

Calculating the selling price of a business

216

     

Chapter 13

Franchising

Page 221

13.1

What is franchising?

221

13.1.1

Franchising as a business option

221

13.1.2

Type of franchising organisations

222

13.1.3

Advantages and Disadvantages of franchising

225

13.2

Getting to know the franchise business

228

13.2.1

Operational details

228

13.2.2

The Franchise agreement (Contract)

228

13.3

Starting as a franchisor (Developing a franchise package)

229

13.3.1

Market feasibility study

229

13.3.2

Identification of target market

231

13.3.3

Marketing information

232

13.4

Franchise business plan

233

13.4.1

Marketing plan

234

13.4.2

Financial plan

238

13.4.3

Operational plan

239

     

Chapter 14

Consultancy

Page 246

14.1

Consultancies

246

14.1.1

Examples of consultancy opportunities

247

14.1.2

Characteristics of consultancies

250

14.2

Market feasibility study

252

14.2.1

Identification of target market

253

14.2.2

Marketing information

254

14.3

Consultancy business plan

256

14.3.1

Marketing plan

256

14.3.2

Prepare the marketing plan for your consultancy business

262

14.3.3

Prepare the financial plan for your consultancy business

264

14.3.4

Operational plan

264

     

Chapter 15

International Business Plan

Page 272

15.1

The benefits of foreign trade

272

15.1.1

Why nations trade

273

15.1.2

The difference between international and domestic marketing

273

15.1.3

Government's role in international business

274

15.2

The International environment

276

15.2.1

Economic environment

276

15.2.2

Cultural environment

280

15.2.3

Political and legal environment

284

15.2.4

Technological environment

285

15.3

Marketing information

286

15.3.1

Sources of information on foreign countries

286

15.4

Methods of entering a foreign market

287

15.4.1

Indirect exporting

287

15.4.2

Direct exporting

290

15.4.3

Licensing, franchising and contracting

290

15.4.4

Manufacturing abroad

291

15.5

International marketing feasibility study

292

15.5.1

Identification of foreign markets

292

15.5.2

The international target market

293

15.5.3

Marketing information

295

15.6

International business plan

296

15.6.1

Marketing plan

297

15.6.2

Setting your export price

298

15.6.3

Financial plan

300

15.6.4

Operational plan

300

     

Chapter 16

Using the Internet and Starting an E-Business

Page 309

16

What is the Internet?

309

16.1

The origin of e-commerce/e-business

310

16.2

E-business models

310

16.2.1

The extended communication model

311

16.2.2

The billboard/poster model

311

16.2.3

Online yellow pages and catalogue model

311

16.2.4

Advertising model

312

16.2.5

Subscription model

312

16.2.6

Virtual storefront model

312

16.3

Setting up an e-business

313

16.3.1

A clear understanding of ICT

313

16.3.2

Servers, router and individual workstations

314

16.3.3

Systems, applications and Internet software

314

16.3.4

Communications link

314

16.3.5

An Internet Service Provider (ISP)

315

16.3.6

A web address, a domain name and a website

315

16.4

Feasibility of an e-business

317

16.5

Developing an e-business plan

318

16.5.1

Suitable technology

318

16.5.2

Telephone lines needed

318

16.5.3

An Internet Service Provider

318

16.5.4

A website

318

16.5.5

The online product portfolio

318

16.5.6

An online money collection mechanism

319

16.5.7

A supply chain

319

16.5.8

Legal implications

319

     

Chapter 17

Introduction to Management

Page 327

17.1

Introduction

327

17.1.1

The meaning of management

327

17.1.2

Types of organisational resources

327

17.1.3

The importance of management

328

17.1.4

The skills of a manager

330

17.1.5

Characteristics of managers

331

17.2

Responsibilities of managers

332

17.2.1

Primary responsibility of general management at the different levels of the business

332

17.2.2

Functional responsibilities

334

17.3

Management environment

334

     
 

Business Management Plan

Page 338

Quotes and Orders