Entrepreneurship - Beyond the Business Plan
Contents
|
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 |
