Professional Documents
Culture Documents
START-UP
SYLLABUS
1. THE BUSINESS ENVIRONMENT
Meaning Scope and Characteristics Importance
for economic policies and decisions in the
Organisation - Types of business environment
2. THE INDIVIDUAL AS AN
ENTREPRENEUR
Definition- The qualities and skills of a successful
entrepreneur
3. STARTING AND RUNNING A
BUSINESS - Business plan - definition- How to
write a business plan
4. RISKS IN A NEW BUSINESS
Definition Types
5. BUSINESS ETHICS
Meaning Scope and Characteristics Importance
Business Environment
What is Business..??
Business may be
understood as the organised
efforts of enterprises to
supply consumers with
goods and services for a
profit
Purpose of a business
All businesses share the same
purpose: TO EARN PROFITS
But other purposes are:
Mission &Objectives
Visioning
One of the most important things to do
in the preparation stage is to
VISUALIZE things in your mind
Mayor Rudolph Giuliani
Visioning vs Planning
Visioning Planning
proactive plan for - process that
the future
provides specific
direction and
It is a view of the
meaning to the
future that
everyone can day-to-day
believe in. activities.
- strategic planning
places the
strategic vision
into motion.
A Vision Statement
- Says what you want out of
Business.
- Details principles and beliefs.
- Gives you the power to create and
design your business around your
values.
In Summary
You have to have a plan for success
!!!
It starts with a vision
You get the vision by reaching each
goal.
You reach goals by hard work,
dedication, and perseverance.
Objectives
Objectives render mission
statements more concrete.
Mission statements seek to make a
vision more specific and Objectives
are attempts to make mission
statements more concrete.
Objectives therefore, represent the
operational side of an organisation.
Profit: Profit is the main incentive,
motivator, strong sustainer, judicious
allocator of resources, objective indicator of
productivity and a solid basis for growth,
expansion and survival.
Growth: Business should grow in all
directions over a period of time. The
strategies adopted to achieve growth are:
(a) add more products/markets;
(b) diversify into new areas;
(c) increase market share;
(d) cut down costs and increase
productivity.
Power: Business houses have vast
resources at its command. These
resources confer enormous economic and
political power on owners and managers of
business ventures.
Employee satisfaction & Development:
Concern for employees continues to be an
important aspect of management
Quality products & services: Those who
insisted on and persisted in quality
survived competition and stayed ahead of
others in the market. Persistent quality of
products earns brand loyalty, a vital
ingredient of success.
Market Leadership: To earn market
leadership, innovation is the key factor.
Innovation may be in product, advertising,
distribution, finance or in any other field.
Internal Environment
Micro Environment
Macro Environment
INTERNAL ENVIRONMENT
The important internal factors which have a
bearing on the strategy and other
decisions are:
1. Value system
5. Human resources
Political
Demo-
Economic
graphic
Business
Environment
Inter-
Social
national
Techno-
Natural
logical
Types of Business
Environment
The macro forces are, generally, more
uncontrollable than the micro forces.
Political Environment.
Economic Environment.
Social Environment.
Technological Environment.
Natural Environment.
International Environment.
Demographic Environment.
ECONOMIC ENVIRONMENT
The survival & success of a business
enterprise is finally decided by the
economic environment & various market
conditions. The important external
factors that affect the economic
environment of a business are as
follows:
Economic conditions
Economic policies
Economic growth
Interest rates
Currency exchange rates.
SOCIO-CULTURAL
ENVIRONMENT
Why be an entrepreneur?
Summary Plan
10 pages, 3 important points
Comprehensive Plan
10-40 pages, seeking capital or
alliances
Operational Plan
40+ pages, for going concerns, part of
an annual process
The Summary Plan
The Business
Legal Structure, Products or Services,
Management, Personnel, Record
Keeping
Marketing
Target Market, Competition, Advertising
Financials
Summary of Needs, Use of Funds, 3
Year Cash Flow Projections, Income
Projections
Business Plan Content
Executive Summary
Company Description
Product/Services Description
Industry Overview
Market Analysis
Competitors
Business Plan Content
Customers
Marketing and Sales Plans
Development
Operations
Management
Business Plan Content
Personnel
Financial Summary
Financials
Offering
Appendices
Executive Summary
Market Definition
Primary Market
Secondary Markets
Direct Competitors
Who are they?
Market shares
Indirect Competitors
Marketing Strategies
Product/Service Strategy
Pricing Strategy
Distribution Strategy
Advertising and Promotion Strategy
Sales Strategy
Marketing and Sales Forecasts
Marketing and Sales Plans
Statement of Opportunity
Marketing and Sales Objectives
Existing Customers
Potential Customers
Prospects targeted
Sales Plan
Sales force structure (direct or reps)
Sales expectations/quotas
Sales Budget
R & D Plan
Objectives
Staffing
Manufacturing/Production Plan
Objectives
Facilities
Staffing
Subcontractors
Quality Control
Company Organization
Management Team
Administrative Expenses
Personnel
Budget
Summary of Financials
Financial Objectives
Time to Cash Flow Positive
Time to profitability
Financial Assumptions
Capital Requirements
Exit Scenario
Appendices
3 Types
Economic
Natural
Human
Financial Risks
These risks occur from changes in overall
business conditions.
This can include:
amount or type of competitor(s)
changing consumer lifestyle
population changes
government regulations
inflation
recession
Natural Risks
Natural risks are result from natural disasters
or disruptions
floods
tornadoes
hurricanes
fires
droughts
lightning
earthquakes
bad checks
employee error
Negligence
Incompetence
BUSINESS ETHICS
Ethics and Ethos
conflict of interest
a conflict between self-interest and
professional obligation
Ethical Questions