4. INTRODUCTION TO BUSINESS IMPLEMENTATION.pptx

4. INTRODUCTION TO BUSINESS IMPLEMENTATION

1. INTRODUCTION TO BUSINESS IMPLEMENTATION

2. INTRODUCTION TO BUSINESS IMPLEMENTATION The time to set up the enterprise, plan its future , and mobilize the needed resources .

3. A VERY CLEAR PURPOSE The entrepreneur must be very clear about the purpose in establishing the enterprise.. • Generating profits or • Feeding the family • Making a difference in the industry or • Actualizing the self The purpose must be compelling enough to motivate the entrepreneur.

4. The enterprise must state its mission statement clearly for The sake of the customer being wooed; The investors who need to know what they are getting into; The financiers evaluating the enterprise; and The government functionaries who must regulate the activities of industries and businesses. A VERY CLEAR PURPOSE

5. The entrepreneur must establish an enterprise on the basis of a very exciting business concept leading to a grand vision. Must offer something new, something appealing, something different. Must present a winning business concept that manifests tremendous future possibilities. VERY COMPELLING VISION

6. The entrepreneur must choose a very fitting name for the enterprise. It communicates what the company and what its product are all about. The company name must project its very desired image. NOT BY ANY OTHER NAME

7. Common for entrepreneurs to embark on a business venture, “lone wolf” – not needing the capital or expertise of others. May be a “mom and pop” affair. • For small, medium and large enterprises, the entrepreneur needs the capital and the expertise, or both of others. • The choice of partners here is very critical one. The entrepreneur must choose the “company of angels,” partners who are well-meaning and like minded. A COMPANY OF ANGELS

8. ANGEL INVESTORS Prepared to support and provide capital to entrepreneurs with risk involved. And may come in the form of senior relatives, close friends and professional equity investors. ANGEL INDUSTRIAL PARTNERS are people who can contribute their Expertise → Experience → Technology → Contacts → Good Character that will enable enterprise to succeed. They demand shares of stock or percentage slice of the profit. For Businesses that would rely heavily on Industrial Partners. Entrepreneurs is well advised to make the best choice of such Angel Partners. A COMPANY OF ANGELS

9. The best or wise thing to do in order to chart the course of the business properly and to the focus the effort of the Entrepreneur. Must flesh out, into more details, the information that a good business plan contains. INFORMATION OF A GOOD BUSINESS PLAN’S PURPOSE IS: For whom it is being written – TARGET AUDIENCE • What would be the coverage of the business plan - IN TERMS OF DEPTH AND BREADTH. A VERY GOOD BUSINESS PLAN

10. THE PURPOSE OF THE BUSINESS PLAN ARE: Entice partners, investors, and bankers to fund a business venture. Communicate what the enterprise is all about, what market it want to serve. Show what financial returns it could muster A VERY GOOD BUSINESS PLAN

11. A VERY GOOD BUSINESS PLAN THE BUSINESS PLAN SHOULD CONTAIN IMPORTANT INFORMATION: • The business itself; • The organizers; • The management and technical people; • The financial structure; • Its market potential; • Its target market; • Its projected sales, expenses and profits; and •its probable risks.

12. The business plan should contain an executive summary of the following: The organizers and key people behind the business and why these people have the resources, talents, skills, and technology to achieve success. The market being targeted and why there is enough market potential to justify the business; 3. The products or services to be offered and why they are right for the market. 4. How the business will be operated and organized, including all outsourcing, subcontracting, franchising, and increase agreements; A VERY GOOD BUSINESS PLAN

13. 5.The investment capital required for the business and what exactly it would be used for; 6. The technology, the technical expertise, the equipment and material suppliers to be utilized; 7. The capital structure (short and long term debt, stockholder’ equity) of the business; 8. The operating budget, financial projections (income statement, balance sheet, cash flow) and return on investment prospects; and 9. The risks in the business and the contingency measures to counteract them. A VERY GOOD BUSINESS PLAN

14. The Business Plan must be able to estimate the capital required by the enterprise. The capital required would be dictated by the investment in the assets of the enterprise. ORGANIZING AND STRUCTURING THE ENTERPRISE

15. THESE ASSETS ARE COMPOSED OF THE FOLLOWING : CURRENT ASSETS OR SHORT-LIVED ASSESTS composed of cash, inventory, accounts receivables, and other current assets. LONG-LIVED ASSETS OR FIXED ASSETS composed of property, plant, and equipment. OTHER ASSETS composed of organizational and pre- operating expenses ORGANIZING AND STRUCTURING THE ENTERPRISE

16. QUIZ 1-FINALS The entrepreneur must establish an enterprise on the basis of a very exciting business concept leading to a grand vision. The entrepreneur must choose a very fitting name for the enterprise. The choice of partners here is very critical one. The entrepreneur must choose the partners who are well-meaning and like minded. Prepared to support and provide capital to entrepreneurs with risk involved. And may come in the form of senior relatives, close friends and professional equity investors. People who can contribute their expertise ,experience ,technology ,contacts .good Character that will enable enterprise to succeed. 6-10. GIVE AT LEAST FIVE CLEARANCES THAT MUST BE OBTAINED BEFORE GETTING PERMIT.

17. 1. If you were set up a business venture, what would be your personal purpose for doing so? What type of business would you set up? What would be the mission of this enterprise? Craft a personal and an enterprise mission statement. 2. What is your compelling business concept? What would be your vision for your business five years after setting it up? 3.What name would give to your business venture? What is the significance of that name? Would it project the image you desire for your business? 4. If you were to invite investors to your business, who would they be and why? What are the possible sources of financing for your business venture? ACTIVITY 1:

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