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Introduction ………………………………………………….......... … Introductory Module Presentation of the workshop……………………………… Module 1 Operating under the challenges of Women Entrepreneurship….. Session 1. Assessing your personal Entrepreneurial Competencies……………. Session 2. Problems of Women Entrepreneurs in Ethiopia…………………….. Session 3 Networking…………………………………………………………... Module 2 Developing Your Managerial Competencies……………………… Session 1 Developing the Qualities of Effective Small Business Manager……. Session 2 Introducing Quality Management to Your Business………………… Session 3 Operating under the legal and regulatory Environment and obtaining Business Development Support services. ………………… Module 3 Developing Your Marketing Skills………………………………… Session 1 Marketing Your Products…………………………………………… Session 2 Practicing a Mini Market Survey…………………………………… Session 3 Developing Your Products and Services……………………………. Session 4 Pricing to Sell Your Product………………………………………… Session 5 Reaching Your Customers…………………………………………… Session 6 Promoting Your Products and Services……………………………… Session 7 Improving Your Personal Selling Skills……………………………… Module 4 Developing Your Financial Skills……………………………………. Session 1 Calculating Costs of Your Products and Services……………………. Session 2 Calculating Your Breakeven Point…………………………………… Session 3 Setting up and Maintaining Simple Record Keeping System………… Session 4 Preparing Your Profit and Loss Account……………………………… Session 5 Calculating the Balance Sheet………………………………………… Module 5 Business Planning…………………………………………………….. Session 1 Conducting SWOT Analysis………………………………………….. Session 2 Goal Setting…………………………………………………………… Session 3 Making a Cost and sales Plan…………………………………………. Session 4 Preparing Cash flow Plan……………………………………………… 1 5 7 10 15 18 20 23 25 27 33 37 45 48 52 56 59 63 64 67 69. 71 89 95 107 117 120 148 165
Micro and small enterprise (MSE) development for women is currently being promoted as a key intervention for women by government agencies across the political spectrum. In industrialized nations, women's enterprise development is an essential element of strategies to decrease welfare budget and unemployment. It is one of the main plans of gender policies in many international development agencies. Entrepreneurship development for women is also an important part of the measures adopted in the platform for action of the Fourth World Conference on Women and the Program of Action of World Summit for social development. This emphasis is partly because of evidence of rapid expansion of women's entrepreneurship since the 1980's and hence increasing numerical importance of women entrepreneurs as development constituency. There is broad consensus on the development potential of small-scale enterprises and the importance of an enabling environment. Both women and MSE are seen as under-utilized and currently underperforming resources to be tapped for growth, poverty alleviation, and employment creation. Targeting women in MSE development is seen as an important strategy for economic growth because of women's numerical representation in the sector and low level of productivity. Research also indicated that women's enterprises might have a greater contribution to stimulation of the local economy than those of men because of women's greater tendency to purchase local inputs (Downing 1990). The efficiency arguments are strengthened, particularly in the case of financial institutions because the wide spread finding confirms that women are better re-payers than men. Some have further argued, particularly women's business advocates in the US and Canada, that women follow more effective enterprise strategies which respond to the needs of flexibility, social responsibility and environmental
Entrepreneurship also offers a number of potential advantages for women. to raise economic returns. Many women see entrepreneurship as a good opportunity and as an alternative to wage employment. represent the future for enterprise At the same time women's enterprise development has been seen as making a positive contribution to individual economic empowerment and improving women's wider social and political condition. Although there are exceptions and an increase in female entrepreneurship. low profit activities for local market. a desire for independence. this is particularly important to provide substantial support for themselves and their children. small and household levels seriously limits the ability of women entrepreneurs to take advantage of the opportunities offered by market growth. women are overwhelmingly clustered in a narrow range of low investment. Firstly.concerns and development. and the skills they do have are frequently undervalued. In addition to this women's ability to enter new markets is seriously limited by lack of technical and business management skills. therefore. creativity. In Ethiopia. to be one's own boss. Institutionalized inequality at the medium. 4 . Entrepreneurship has also enabled some women to have an income which they may control themselves or contribute to the household and improve their status. Women’s income earning may bring about wider changes in their position in the household. to develop a flexibility that caters for the combination of family responsibilities with gainful employment (Turner 1989). this success has helped many women to build up an independent resource base. credits and training in some countries constitutes fundamental constraints on female enterprise. income. where women have been able to set up economic activities. self realization and an ambition to improve the quality of working condition. Reasons given by women for becoming entrepreneurs include: personal ambition. Women's restricted access to property.
each of which can be used independently. who have the potential to start and operate their own business or for women who have already started small businesses. energizers. In the global business world such business skills become a necessity even for the smallest businesses. It is advisable to have at least two trainers for each session. such as planning. marketing and management. The trainers (Facilitators) who use this manual have to have some previous knowledge in business management and they need to have the following qualities and qualification. Even if.. ice breakers. record keeping. • A respect for adults / women they are going to train • Good facilitating skills and an understanding of how adults learn. How to use this Manual? This Manual consists of five modules. costing. or mixed groups. The manual can easily be adapted to train male entrepreneurs. For potential business operators this manual helps to create business awareness and serve as a reference in the development of entrepreneurial competencies. because there is a need for more assistance in this type of training activities.. we assume that most of the trainers who use this manual may not have training of trainers skills. we include a training topic in adult learning. The second part of this manual serves as a tool for trainers.etc in the second part of this manual. training methods (approaches). For women who have been in business this manual enables them to gain general skills for operating and improving their business. The titles of the modules and of the sessions within each 5 .FOR WHOM IS THIS MANUAL? The manual is designed to trainers to be used to train women entrepreneurs in Ethiopia. • Diploma graduates in any social science field of studies. evaluation and follow up methods.
6 . to Identify major problems faced by women entrepreneurs and discuss on the possible solutions of these problems. skills and attitudes. operational and administrative aspects of managing under the small business environment (internal and external) and also to build up the capacity of women managers to analyze their own situation in order to take appropriate actions by improving their managerial knowledge.module are chosen so as to show the need for the women entrepreneur’s active involvement. Module 2: Developing Your Managerial Competencies The over objective of this module is to enable participants to develop effective women small business managers who can successfully challenge the strategic. Module 1: Operating under the challenges of Women Entrepreneurship The over objective of this module is to developing personal entrepreneurial characteristics of women entrepreneurs so as to improve performance of women operating businesses and.
price. place and promotion) and to discuss ways of improving marketing strategies for their own business. • prepare profit and loss account and calculating balance sheet. it helps entrepreneurs to describe the steps followed to prepare business planning.Module 3: Developing Your Marketing Skills The over objective of this module is to enable participants to describe the four important components of marketing (product. Module 5: Business Planning The overall objective of the module is to enable participants to explain the very principles of business planning and its importance. • set up and practiced a simple record keeping system. training participants will be able to make a realistic and achievable business plan by setting a SMART goal. Accordingly. 7 . In addition. Module 4: Developing Your Financial Skills The over objective of this module is to enable participants to: • calculate the business cost thereby for estimating the price of their goods and services and to calculate • calculate the volume of sales at which the business neither makes profit nor losses.
Introductory Module WED TRAINING MANUAL 8 .
Tell participants that in participatory training it is important for everyone to see and hear each other so they should make a circle/U-shape or T-shape of seating arrangements. • act in ways that show their feeling in the workshop (smile. If there are tables. chairs will probably be in rows.Introductory Module Presentation of the Workshop OBJECTIVES: At the end of this session. TRAINING MATERIALS: • Flip chart paper and marker • Zopp card • Beans and paper bag or half cut pictures. • Tell participants that they will not need to take notes. move them against the wall. the Participants will be able to: • call at least the names of five participants in the workshop. sit comfortably. laugh. • Training Program SESSION GUIDE REARRANGE THE ROOM AFTER OPENING OF THE WORKSHOP • If the opening ceremony was held in the same room. 9 . • tell at least two new facts they learned about each participant. stop trying to take notes). talk to others freely.
there is no teacher who knows everything and students who know nothing. instructor facilitates participants’ introduction with a note of humor. Then the training facilitators introduce each other. instructor reviews the background of Describes the training methodology and presents the women entrepreneurs' development Program (WEDP) and its results. experiences and special knowledge to share. hobby. At the beginning 20 minutes is allowed for participants to get to know those around them. All the participants have ideas. business problems…etc. to break the ice as soon as possible. After participants finished pair’s introduction. but rather on group work. The following are included in the introduction – name. PRESENTATION OF PARTICIPANTS EXPECTATION • Ask participants: “What is your expectation from the training? 10 . line of business. overall objectives of the workshop to participants. Participatory training is not based on lectures. so participants need to know each other well and speak out freely. PRESENTATION OF SESSION OBJECTIVES • After a brief welcome. PARTICIPANTS AND PROGRAM INTRODUCTION To illustrate the presentation process.INTRODUCE SESSION AND EXPLAIN OBJECTIVES • Ask participants “What is the most important element in participatory training? “participants”. For participants introduction the instructor uses half cut pictures. and experience in business. they introduce each other. • Let them guess until some one says Tell participants: unlike the traditional classroom. which will help participant to find a partner. After everybody identifies her partner. partner’s start to introduces each other in front of the whole group.
instructor gives the detailed program of the workshop. Ask participants to take care to obey these rules throughout the training program.• • After participants give answers to this question. the instructor will level their expectation in relation to the objective of the training program. EXPECTED RESPONSES • • • • Share experience. Some participants may expect to get money. coffee-breaks and meals. GENERAL INFORMATION • Instructor takes this opportunity to provide information that will help participants follow the rules or procedures in the process of conducting the training session: • • • Give the participants the schedule for the workshop. participants will be able to get money. but the training program by itself is not directly help to get money. and how to prepare business plan. 11 . Finally. DETERMINING THE RULES OR PROCEDURES DURING THE TRAINING SESSION Instructor asks participants to identify the rules or procedures for the workshop and writes them on the flip chart as they are given. defining its content. session by session. Suggest that someone be designated as timekeeper. This is the process of leveling the expectation of participants with the objective of the training program. instructor notes responses on the flip chart. Ask questions if clarification is needed. After taking this course. method of calculating costs and prices. But the instructor levels this by saying that “you will learn how to market your goods and products. Listen closely. Ask permission to speak. To assist in developing the rules.
Be focused. by now: • • • They all know each other. etc. Do not repeat what has already been said. They know where they are heading. CONCLUSION Instructor reviews the participants’ expectations before ending the session. The conclusion focuses on the fact that. Strictly respect the schedule. we are now ready to get to the important aspect of “Entrepreneurship and Business Management Skill for Women Entrepreneurs”. They all know the rules or procedure. 12 .• • • • • Do not interrupt the speaker. Be willing to learn and become open to others.
Module WED TRAINING MANUAL 13 .
Identify major problems faced by women entrepreneurs and discuss on the possible solutions of these problems. Some of the more common constraints include lack of access to finance. low level of business skills and knowledge. 14 . Women’s household responsibilities and role as mothers represent a constraint affecting only women. Developing personal entrepreneurial characteristics of women entrepreneurs so as to improve performance of women operating businesses and. and effects of market saturation. The significant constraints of women entrepreneurs are lack of adequate supply of indigenous entrepreneurial talent. Accordingly. ‘Entrepreneurship’ training aims to identify certain personality characteristics or ‘traits’ in individuals that appear to be possessed by successful entrepreneurs. objectives. Other constraints exclusive to women and applicable in the developing country context are influence of extended family on women’s businesses and lack of right in decision making which often result in women having less self-confidence and assertiveness compared to men. this module will have the following The module has the following four sessions lasting about five hours. information. The economic success of both female and male MSE owner is constrained by many factors. They are pivots of the economy and a catalyst for economic change and development. lack of relevant education and experience.Module 1 OPERATING UNDER THE CHALLENGES OF WOMEN ENTREPRENEURSHIP Overview Entrepreneurs are important and the central economic actors. Women may experience the constraints more intensely due to the socio-economic roles and responsibilities assigned to them. productive resources and markets.
Assessing your personal entrepreneurial competencies 2. This module takes about 5 hours or one day. Problems of women entrepreneurship in Ethiopia. Developing networking to advance women entrepreneurship. Successful women entrepreneur 4. 15 .1. 3. Each session starts by setting clear and achievable sessions objectives.
Identify the characteristics of a successful entrepreneur. ASSESSING ENTREPRENEURIAL SKILL 1. TRAINING MATERIALS: Handouts:. Instructor distributes entrepreneurial innovation checklist to participants and tells them to read the checklist carefully and respond by marking the most accurate answer. Time: 1: 30 hours Session Guide INTRODUCTION Introduce the session and explain the objectives.Personal Entrepreneurial Competencies Flip Chart and Colored Pens Checklists What is an Entrepreneur? (Handout) Questions to start the discussion. 2.Module 1 Session 1 Assessing Your Personal Entrepreneurial Competencies OBJECTIVES: By the end of the training session the participants will able to: List their strength and weakness as an entrepreneur. Instructor distributes the answer sheet and asks them to calculate the rank 16 . Explain personal qualities needed to run a business. After participants finish the assignment. Explain to the participants that they are going to assess their personal entrepreneurial competencies. tell them to exchange the paper with the other participants who sit beside them.
She is able to make decisions. Strength She is hard working She is eager to get information. How did you describe W/ro Alemitu’s behavior? 2. CASE STUDY – SUCCESSFUL WOMAN ENTREPRENEUR The instructor presents a case study and sticks pictures on felt board. Ask one volunteer to summarize the whole story (See Notes to the Facilitators). Does market survey. She is able to learn from mistakes. She sets goals for herself. She is a successful business operator. She is organized with her time. Instructor explains questions in a way that is understandable. What do your think the lady should have done before she started the business?. Then the Instructor reads out the following questions: Questions: 1. What are her strength and weakness as an entrepreneur? 3. She is open to new ideas. 17 . Expected Responses 1. Instructor explains the message of the exercise and discusses with participants. Prepares a detailed business plan.
Her product is a little bit more expensive than other similar products. CONCLUSION Instructor concludes the session. 18 .Weakness She is weak in money handling and record keeping. you must develop your personal characteristics by giving due attention to the ten personal entrepreneurial characteristics (PEC). To succeed in business one should know first her personal characteristics and then try to build up the strong points and plan by taking into account her weaknesses. RECAP OF OBJECTIVES Instructor makes sure the participants understood the objectives of the session by asking them to say something about the session or to give comments on the case. To that end. We will discuss in detail about PECs in the following session. SUMMARY The success of any business operator lies in his/her personal entrepreneurial competencies.
I regard my self as a "specialist" not a "generalist" 16. not as you would like it to be. I find it easy to identify flows in others' ideas 15. or attitude as it actually is. I cannot get excited about ideas that may never lead to anything 13. I had many part-time jobs 4. At least one of my close relatives is an entrepreneur 3. Things that are obvious to others are not so obvious to me 20.Handout 1 . Before taking on an important project. Princeton Creative Research) Entrepreneurial Behavior 1. Once I undertake a new venture. I concentrate harder on projects I am working on than most people do 12. I can easily give up by immediate gain or comfort to reach long-term goals 18. I always seek challenging problems to solve 6. I get a kick out of breaking rules Agree Disagree 19 . I usually investigate a variety of options 8. My parents encouraged me to take an interest in discovering things for myself 2. frequently to the point of exhaustion 14. Try to mark your first reaction (created by Eugene Raudsepp. and then respond by marking the answer that most accurately describes your behavior. I have great tenacity of purpose 19. I am able to work for extended period. I am curious about more things than most people are 5. Uncertainty and unpredictability easily frustrate me 17. Throughout my education. I am determined to see it through 11. I am not too painstaking in my work 7. When comforted with difficult problem. I try solutions others would not think of… 10. or think it should be. feeling.1A Entrepreneurial Innovation Check list Read each statement carefully. When faced with a problem. I learn more I can about it 9.
I get into trouble because I am too curious or inquisitive 23. A logical step-by-step method is best for solving problems 20 . I rely on intuition when I am trying to solve a problem 26. I tolerate frustration more than the average person does 25. I become upset if I cannot come immediately to decision 22. I am able to win other people over to my point of view 24.21.
Disagre S. circle and add the values for your answers.N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Agree 4 3 4 4 3 0 4 4 4 4 4 1 4 3 1 1 4 4 4 e 1 1 1 1 1 4 1 1 1 1 1 4 1 1 4 4 1 1 1 S.N 20 21 22 23 Always 2 0 3 3 3 5 1 Often 3 2 4 4 4 4 2 Sometimes 5 3 5 5 5 3 5 Rarely 1 5 1 1 1 1 3 Never 0 1 0 0 0 0 0 24 25 26 21 .Scoring Instructions To score the exercise.
Before she started this business. humble and hard worker by her nature. When she wanted to give money to her family members she simply took the money from the cash box without the consent of the accountant. Do you think Alemitu is a successful entrepreneur? If she is not. Alemitu gained wide experience in producing such items. This behavior enabled her to attract customers.Handout 1 – 1B Case study Alemitu and her business W/Ro. which will boost her investment together with her savings from her previous salaries. Other than this. She sets a clear and realistic goal and plans towards that goal. She is cheerful. where many tourists get in and out from the country and fully organized her office so as to start her work effectively and efficiently. On the contrary. she is confident enough on her personal behavior in handling customers and managing employees. why? 22 . Even if Alemitu took a risk in leaving her job to start this type of uncertain business. table and sofa clothing and other small gift items. she does not have any idea why he was here and always interfered in his activities. Alemitu is a businesswoman engaged in producing cultural cotton products. She selected a very suitable business site. it is risky to continue like this in the business without correcting the above-mentioned mistakes. studied the prevailing market situation and then decided to start her own business. Alemitu is also known by her strong personality for quality goods and services. She always advises her employees to be very conscious in their work in providing quality products. Even if she has an accountant in the business. She shared her decision with her family members and asked them to give her some money. why? If she is. some of her customers complained about the high prices of her products. T-shirts. she had been working as an employee in a similar firm. She produces cultural dresses. gowns. handling customers and being committed to their responsibility. in Bole area. Alemitu is poor in handling and controlling business money. Even if her effort and the staff cooperation made her business profitable for the time being. For her quality products are the results of using quality materials and quality work process. Alemitu believes in planning before making any move concerning businesses. She promoted her business by inviting guests and by using different methods of advertisement.
MODULE 1 SESSION 2 Problems of Women Entrepreneurs in Ethiopia OBJECTIVES: By the end of this ACTIVITY. GUIDE TIME: 1 hour Flip chart and colored pens (markers) Over Head Projector (OHP) transparency paper and different color markers INTRODUCTION Introduce the session and explain objectives. In this activity. Family problems. participants will attempt to make a complete list of problems faced by Women Entrepreneurs in Ethiopia today. Skills problems. the Participants will be able to: • List problems of women entrepreneurs in Ethiopia according to the following: Cultural problems. Religion problems. 23 . Cultural problems – for example women are restricted with family matter and have problem of mobility. Explain the purpose of the activity and link it to the previous activity. Political problems. We look at problems that hamper women’s businesses from growing. IDENTIFYING THE MAJOR PROBLEMS • • Explain the major problems and give examples of each. Access problems TRAINING MATERIALS: • • HANDOUT: • SESSION Transparency – Major Problems of Women Entrepreneurs.
Family related problems: for example. Skills and attitudes problem: women lack appropriate business skills to enter new areas of activities (do not have planning. DISCUSSION ON THE PROBLEMS • Divide the participants in five groups to list problems and organize them into the five major problem areas. The instructor can lead the whole group to further supplement the possible solutions and list the whole range of ideas on flip charts and put them on the wall. women’s businesses are influenced by extended family system. • All ideas are collected and written on a flip chart by the instructor or by co-facilitator. (15 minutes). if any. When the groups are finished. each group presents its recommendations. women give most of their time to religion-related activities. women do not have access to and control over income. Access problems: for example. which hamper women’ businesses from growing. DISCUSSION ON POSSIBLE SOLUTIONS The instructor asks to the previous group to discuss and suggest possible solutions to these problems. after 15 minutes. Instructor – asks participants to list problems. Brainstorming is a method used to encourage people to develop as many ideas as possible. • The representatives of each group present their suggested solutions to the whole group. After the groups have accomplished the task. each group puts of its paper on the wall and reports on its list to the whole group. marketing and record-keeping skills) EXPLAIN BRAINSTORMING METHOD • • • Explain the brainstorming method. • The instructor again asks the same group to discuss on the possible solutions and to list them.• • • • Religion related problems: for example. 24 . • Each group appoints a facilitator to lead the group and a secretary to write down all ideas on a flip chart.
RECAP • The instructor summarizes the whole session by asking questions such as.CONCLUSION The instructor summarizes the session by involving the group in the discussion of the usefulness of this session in their day-to-day activities. 25 . -What are the major problems which hamper women entrepreneurs’ businesses from success? -How can be these problems solved? -Etc.
A lack of relevant skills and knowledge constrains the growth potential of small and micro enterprises. but women entrepreneurs more intensively include: Access to finance/ access to credit Access to information Low level of skills and knowledge Lack of relevant education and experience Effects of market saturation Etc. The information can be about markets. Women often have fewer opportunities than men to gain access to credit for various reasons. including lack of collateral. unwillingness to use household assets as collateral. Female compared to male business operators have great difficulty in accessing information because of difficulties in attending events due to their dual work roles and the resulting time constraints. These constraints results from societal norms that are institutionalized at the macro level and affect only women due to the perceived gender differences. The sectors tend to be crowded because of these low barriers.Handout 2. poverty alleviation and empowerment are achieved through the micro and small enterprise sectors is limited by various constraints on entrepreneurship development. Women tend to be less likely to have had education and experience relevant to starting and managing a business and thus have less potential for success. technology. Information is another resource that small enterprises have difficulty in accessing.1 PROBLEMS OF WOMEN ENTREPRENEURS In many regions. the roles and responsibility assigned to women by the society. Many entrepreneurs. and unequal power relations between women and men. the small amount of credit requested and negative perception of female entrepreneurs by loan officers. particularly women. Information can be obtained through informal networks or through membership in organizations such as trade guilds. suppliers. though women tend to be affected more intensely. This leads to saturated markets and little room for growth. are located in low value markets where there are few barriers to entry. The constraints often affect both women and men. the extent to which economic growth. This is because of the society’s perception of women. Constraints affecting MSEs in general. This is compounded by deficiency in basic education. associations and unions. export opportunities etc. 26 .
Explain that the group will be meeting an entrepreneur who will talk about her experiences and answer some questions after the presentation. the challenges she faced and how she succeeded. Identify and invite a guest speaker. 1: 30 Hours SESSION GUIDE ACTIVITIES BEFORE THE SESSION STARTS 1. a successful local woman entrepreneur. General definition of an entrepreneur in a market economy. TIME. INTRODUCTION Introduce the session and explain the objectives. 2. Meet with her before the session and explain the purpose of her visit: it is to describe her experience as an entrepreneur. Fit to thank guest.Module 1 Session 3 SUCCESSFUL WOMEN ENTREPRENEUR OBJECTIVES: By the end of the session participants should be able to: Identify the characteristics of successful entrepreneurs from hearing the experiences of successful women. TRAINING MATERIALS: Overhead projector and screen Transparency and handout 1 – Questions to start the discussion. On a big sheet of paper. 27 .
EXPERIENCE SHARING Introduce the woman entrepreneur.3A. Discuss all these questions and decide who will ask each question. Tell participants that they will not only listen to the entrepreneur’s story. 28 .PREPARE QUESTIONS FOR THE GUEST SPEAKER. She has the ability to decide. She invests for tomorrow rather than spending today. Make sure the participants understand that they can also ask other questions. but will also be trying to notice the personal qualities such as those that contribute to making her a successful entrepreneur. She makes an effort to obtain information. WHAT IS THE LESSON LEARNED FROM THE ENTREPRENEUR? Ask participants: what did you learn from the guest entrepreneur? What makes her a successful entrepreneur? Which of her personal characteristics do you like most? Expected Responses She is persistent She seizes an opportunity She takes a moderate and informed risk. and introduce the group members to her She talks for about 30 minutes sharing her experience as an entrepreneur. she answers participants’ questions for 20 minutes. and monitors the results. ask them to tell the group. When participants have considered their questions. She plans ahead. thank her and give her small gift(s). When she has finished.show transparency and distribute Handout 1. and write them on a flipchart . Ask participants to work in pairs to think of some questions to ask the guest. Afterward. She strives to improve quality She leads people to do what she wants She sets goals for herself.
EXPLAIN PERSONAL ENTREPRENEURIAL COMPETENCIES Instructor displays entrepreneurial characteristics written on a flip chart or on the board and asks participants to read it loudly. Ask participants to look over the list of lessons learned and tell which lesson they felt was the most important and why? RECAP OF OBJECTIVES Instructor makes sure the objectives of the session have been achieved by asking the participants to list the general entrepreneurial characteristics and to define what is an entrepreneur. but that there are certain lessons that will be useful for all. 29 . CONCLUSION Conclude the session by telling participants that there are different kinds of entrepreneurs.
3A • How did you decide to become an entrepreneur? • What resources and skills did you have to start with? • What were your first challenges/difficulties? How did you overcome them? • Did you ever think about stopping your work? Why? • What characteristics of your personality help you the most in your business? 30 .HANDOUT 1 .
Here are some ideas others have Yourself What characteristics do you have? What are the characteristics you do not have and would like to develop? What other ideas do you have? 31 . and monitors the results She rebounds from failure She invests for tomorrow rather than spending today She has the ability to decide. • • • • • • • • • • • She is persistent She seizes an opportunity She takes a moderate and informed risk She makes an effort to obtain information She strives to improve quality She leads people to do what she wants She sets a goal for herself She plans ahead.3B The Guest Speaker What are some types of entrepreneurial behaviors that you learned from this successful woman entrepreneur? had.HADOUT1 .
honesty. According to him. The characteristics of achievement-motivated persons as identified by Mc Cleland '' A successful entrepreneur must be a person with technical competence. energy. This responsibility means a lot of pressure. fairness. the entrepreneur must have an adequate commitment. Moderate risk taker: An entrepreneur must be moderate risk taker and learn from any failures. tactfulness and emotion.HANDOUT1 . Histrch identified a few more capabilities or personal characteristics that an entrepreneur should possess. You can make yourself aware of the characteristics that need improvement and change your attitude and behavior. An entrepreneur must have initiative accepting personal responsibility and above all make good use of resources. Committed: An entrepreneur must be committed to the project with long a longer time horizon Energetic/efficient: The success of long hours for a sustained period of time. motivation. Robert D. The family and financial situations are also important factors to consider before starting a business. good judgment. situation and skills. creativeness. self-confidence. intelligence. attitude. The business success in turn depends on the entrepreneur’s personal characteristics. The more entrepreneurial characteristics and skills an entrepreneur has. Some key characteristics of successful entrepreneur are: Motivator: An entrepreneur must build a team. If you lack certain skills they can be developed through training or studies. you as an entrepreneur have some of the necessary characteristics and skills. the more likely it is that her/his business will succeed. keep it motivated and provide an environment for individual growth and career development. and skills to start and build a business. for action. but also a lot of freedom. Initiative. The kind of characteristics and skills an entrepreneur needs will vary with the type of business she/he has or decides to start. leadership qualities. an entrepreneur demands the ability to work Persistent: An entrepreneur must have an intense desire to complete a task or (problem solver) to solve a problem. initiative. Creativity: is an essential ingredient. Goal setter: An entrepreneur must be able to set challenging but realistic goals. 32 . More than likely.3C CHARACTERISTICS OF AN ENTREPRENEUR In a new business the entrepreneur is the most important person who has the responsibility for the management and success of the business. The characteristics of an entrepreneur that contribute to success are the result of her achievement motivation. Self confident: Entrepreneurs must have belief in themselves and the ability achieves their goals.
Information seeking Goal setting Systematic planning and monitoring Power cluster 1. Being able to make difficult decisions that could have serious consequences is important in running the business. The entrepreneur can work on her weaknesses and turn them into strengths. characteristics developed and situations improved. 5. 33 . Those characteristics classified in three clusters. 2. planning cluster and power cluster. These are achievement cluster. 4. Here are the major personal entrepreneurial competencies needed to develop to be successful in business.PERSONAL ENTREPRENEURIAL CHARACTERISTICS (PEC) Many entrepreneurs do not have enough skills or the necessary characteristics or are not in the right situation when they start to plan for new business. Achievement cluster: 1. 2. 3. an entrepreneur will have to make important decisions. Self confidence Decision making Persuasion and networking In a business. 2. Demand for efficiency and quality Opportunity seeking Commitment to the work contract Persistence Risk taking Planning cluster: 1. 3. 3. They cannot be passed on to someone else to make or not to make at all. But skills can be learned.
3D SESSION 3 .FLIPCHART HANDOUT1 .SUCCESSFUL WOMAN ENTREPRENEUR WHAT IS AN Entrepreneur ENTREPRENEUR? A person committed to the achievement of a goal in a market economy Committing Time Capital Creativity To achieve the production of goods or services to satisfy customers who will pay the price 34 .
Expected Responses An association which will be formed on a voluntary basis for exchange of information 35 . WHAT IS NETWORKING? Ask participants: what do we mean by networking? Have you ever been a member of an association or cooperatives? Gather participants’ responses and write them on a flipchart. 1 Hour Session Guide If possible invite specialists who can give advice about forming associations and cooperatives. List the advantage of networking with other women entrepreneurs TRAINING MATERIALS: Overhead projector and screen. INTRODUCTION Introduce session and explain the objectives. participants shall be able to: Discuss the possibilities of simple form of networking. setting up an association. Handout – Benefits of Networking. Flip Chart and Colored Pens. TIME.Module 1 Session 4 Networking OBJECTIVES: By the end of the training session. Tell participants that in this session we will discuss the benefit of networking with other entrepreneurs.
the instructor asks the rest of the group and the specialist to comment on the possibility of using traditional forms of networking to develop simple forms of networking. The facilitator encourages the participants to share their experiences (if there is any) of traditional networking. etc EXPERIENCE SHARING The instructors invite some specialists or relevant association leaders and introduce the guests. forming association or even a marketing cooperative. After each woman has made her presentation of her experience.- Organization which undertakes joint activities. then the instructor opens the floor for 20 minutes for discussion and encourages participants to say something about networking. Forum for collaborative efforts. and tells them to list the advantages and disadvantages of networking. Fostering trust and transparency. It is entirely their own initiative to take it up further. etc WHAT ARE THE MAJOR PROBLEMS OF WOMEN ENTREPRENEURS? The instructor forms four groups of 5–6 members. Expected Response Pooling of resources. improved effectiveness. Stimulating new ideas. Simultaneous promotion of several organizations. After ten minutes group representatives are allowed to present their answers. 36 . less duplication of efforts. Collaboration among small business operators. Make sure that the women understand that the discussions here are only to offer them information on how to establish associations and to form cooperatives. The assignment will take 10 minutes.
37 . RECAP OF THE OBJECTIVES The instructor asks participants what they have learned? Finally the instructor summarizes by saying that the process of introducing and internalizing network mechanisms and securing ownership often involves a change in attitudes and approaches towards communication and exchange of information.CONCLUSION Tell participants that if they take initiative they can start a simple form of networking after the end of this workshop or another session can be organized if they want to pursue the issue further.
exchange of experience between organizations. type of partner and level of decision-making should the concept be introduced? 38 . Simultaneous promotion of several organizations. If there is no suitable networking structure in place and it is intended to build one. where questions are raised by individual members and a joint attempt is made to find an answer. In Zambia. Distribution of information. Stimulating a participatory learning process. Stimulating new ideas. improved effectiveness. Fostering creativity and risk taking by removing members from institutional limitations. • At what location. In Zimbabwe. the spread of sector knowledge and client referral at local level. Fostering trust and transparency Coordination between members referring and referencing clients to each others' specialized services. the mapping of the stakeholder landscape was used as a starting point. Forum for collaborative efforts. decentralization of decision-making and commercial management of training institutions were such door openers to get access to relevant representatives. some of them are highlighted below: • • • • • • • • • • • • • Pooling of resources. Enabling members while delivering specialized or focused interventions to also maintain a broader strategic awareness. the envisaged development of Occupational Standards. thereby meeting a greater diversity of demands. Clarifying own objectives. The process of introducing and internalizing network mechanisms and securing ownership is slow and often involves a change in attitudes and approaches towards communication and exchange of information. Strengthening capacities by identifying needs and creating learning opportunities.HANDOUT 1 . the case studies suggest that the starting point should always be a specific problem. Excavating decentralized and hidden knowledge. less duplication of efforts.4A Networking Networking in order to foster co-operation between organizations for a common goal can have numerous benefits. Susan Wilkinson suggests the following guiding questions for introducing the network concept: Is there sufficient demand for the concept? (Is it understood? have people grasped the concept? to what extent does a network culture exist? what basis is there for networking? what are the motivating factors and expectations behind it?).
• What support interventions are required to cultivate preparedness for the network concept? (How can a network orientation be built up? what level of orientation to networking already exists? how can existing systems or practices be enhanced? what capacities need to be strengthened practices introduced. type of organizations?).(Where is the ground most fertile reap intended benefits? is orientation highest among traditional development partners or non-traditional ones? where should the investment with this concept be made (sector. • How soon should the concept be introduced? (Are people ready for it? sufficient motivation? attitudes a road block?). attitudes influenced?) 39 . beneficiaries. geographic coverage.
Module WED TRAINING MANUAL 40 .
This again is further constrained by the demand and supply related problems of small business management skills. Moreover. skills and attitudes. 41 . the presence of gender inequalities calls for the development managerial competencies. The small business manager plans for the long-term makes strategic plans as well as assumes dayto-day implementation functions. The small business manager must routinely demonstrate personal selling skills and even in charge of operational effectiveness.Module 2 DEVELOPING YOUR MANAGERIAL COMPETENCIES Overview In many instance of small business situations the successes or failure of businesses is widely acknowledged as due lack effective managerial competencies. Accordingly. The small business manager operates under different sets of external and internal environment. the noted differences of managerial roles in small and big businesses prove the complex nature of managing small businesses. On top of these. the module will have the following objectives: To develop effective women small business managers who can successfully challenge the strategic. Managing small businesses require is actually much more complicated than many large businesses. To develop the capacity of women managers to analyze their own situation in order to take appropriate actions by improving their managerial knowledge. operational and administrative aspects of managing under the small business environment (internal and external).
An issue of role conflict as it applies to women managers will be highlighted. Following the conceptual definition of management participants will elaborate the challenges and opportunities facing small businesses. particularly in women owned and managed small businesses.The module has the following four sessions lasting approximately about 6 hours minutes or about one day. Introducing quality management in small business. It starts by defining the concept of management by bringing the example of a woman’s everyday activity in a family. 1. This module brings together management principles as they apply in small businesses. Developing the qualities of effective small business manager. Operating under the legal and regulatory environment and obtaining business development support services. A session on leadership development will allow participants to exercise leadership skills. which will be complimented by advice from experts and experiences. Participants search for better approaches to narrow gender gaps. 42 . 2. Developing the leadership skills of women is the way for the successful application of other management roles. 4. Emphasis is placed to examine the effects of gender relations in developing managerial competencies of women managers and operators of small businesses. Developing leadership skills. Introducing the concept of quality management will consolidate the management concepts elaborated in the sessions. 3. The envelope game will enhance the application of quality management in all aspects of small business management. Since people are the key to business management the session also brings the issue of human resources in the picture.
The fourth session on legal and regulatory issues including accessing business development services provides opportunity for women entrepreneurs to meet with relevant government agencies and other support institutions. 43 .
2. It also provides an overview of the modules in the training program. Management is best use of people.Session 1 Developing the Qualities of Effective Small Business Manager Objectives: by the end of the session participants will have: Defined the concept of management as it applies in small business situations. Handouts: a. it also goes beyond providing an overview. Overview: The purpose of this session is to enable participants to recognize the importance of having management skills in running their businesses successfully. Participants must conclude that management is using and developing 44 . Duration: 2 hours Session overview: 1. Common problems facing small business managers (Transparency). However. resources and ideas (Transparency). b. Identified at least three qualities of effective small business manager. Management in the realm of everybody’s experiences. The perception of management among small business operators as something complicated and too technical must be changed. Developing your managerial skills.
− The availability of money. Session guide: a. Greet participants. Ask participants to list activities and resources that must effectively and efficiently be utilised in cooking and serving the dinner. Though management can be simplified it is also complicated when it comes to the role of small business managers in general and women /owner managers in particular. 5. 2. Tell participants that in this session they will discuss on management skills by giving examples in relation to their own everyday life experiences. continue by asking participants to identify the necessary steps needed for cooking and serving dinner for the family. 1. 3. Discuss ideas among other things to include: − Check whether the family will need dinner including healthy and delicious food. Elicit and write responses in a flip chart to include a list of activities for a woman in managing her household affairs. Accordingly. 4.the skills they already have. The meaning of management as it applies to small business situations will be discussed by simplifying into everyday activity. 6. Get participants agree on the objective or expected results of the activity as getting dinner prepared and served to the family. introduce the session's objectives and relate them with the rest of the sessions in the module and the training program. Tell participants that among their answers you are going to take one example for further discussion. Management in the realm of everybody’s experiences. 45 . − Decide to prepare dinner or set objectives.
Write the definition and post in the training room so that it can be visible to all participants throughout the training days. definition: ideas. − The home worker and family members. 7. − Preparing tables and arranging plates. Recall to participants that they have identified the idea of preparing dinner as an objective. − Serving the dinner. − Preparing kitchen utensils. Agree with participants on the definition of management to include “getting things done” or “management as an efficient and effective use of resources. 10. etc. Among the answers include: − The motivation to prepare dinner (the idea). 8. Ask participants to identify the personal qualities needed to prepare dinner for the family. 46 . quality and time. mission. goal setting. ideas and people”. − The cooking skills needed. − Ask whether the family has enjoyed the dinner. − Using kitchen equipment and preparing food. people and resources. 11. they have also listed activities that can ensure the best use of resources to prepare the dinner and thirdly they have listed the personal qualities needed to prepare and serve the dinner.− Identifying and buying the right food items at a specified amount. For people to include motivations. − Availability of time. techniques. strategies. − Affection to the family. Ask participants to elaborate the three terms used in the Elicit answers for ideas to include vision. 9.
Developing your business management skills. sales. 12. Such as the 47 .1A and agree with participants on the definition of management as true for all types and size of business. 2. 3. Ask participants to recall the definition of management and implications with the listed resources and activities. 5. equipment. 4. 1. 6. If all participants are in one or in similar businesses use a one-group brain storming method. Since you already know each participant’s type of business occupation divide participants into four groups of similar or related businesses. skills. etc. Ask each group to list resources and specific activities involved per day or week (depending on their choice) in running the business they are engaged in (allow not more than one flipchart). B. Production: quality and quantity of products. At the end of 15 minutes bring the four groups together to report their findings. they should have 15 minutes to complete the task. Reconvene the groups and allow at least 5 minutes for presentation. Marketing: promotion. Each group will have approximately 5 minutes to make its presentation. People / labour: hiring. distribution. You can add in the list by including possible comments from the plenary. buildings. Illicit ideas and write them on the flipchart: Finance: budget. etc. Give each group flipchart paper and markers. Resources include money. time. Purchasing: materials and supplies. Time: daily production schedule and long term planning. training and maintaining workers. book keeping. Distribute handout 2.emotions.
7. Summarize the session by relating the management skills they have identified and they need to improve in the training program. 48 . etc.implications of managing cash. 8. End the session by informing participants that the subsequent sessions will build up on management competencies by introducing quality management and managing under the business environment. production process. time. human resources.
Session 2 Introducing Quality Management to Your Business Session objectives: by the end of the session participants will have Identified at least three main challenges and opportunities facing small business mangers in pursuing quality management. 1. Greet participants and introduce the session’s objectives by relating to the rest of the training. Session Guide: A. Lead participants to agree in categorizing the responses as representing producers or customers point of view. Session overview: a. Specifically ask participants to give their responses from the point of view of producers and customers. Identified specific areas and methods for improving operational effectiveness in a simulated business situation. In one flipchart write participants interpretations of product or service quality from the traditional producers’ point of view and in another flipchart write ideas representing customers’ point of view. Make sure that both points of view are represented in the discussion. Described at least 3 roles of small business managers in quality management. Changing attitudes towards quality. Start by asking participants to define the meaning of a product or service quality in business. 2. Changing attitudes towards quality. 4. Among answers include producers interpretation of quality as adherence to specifications or conformance quality and customers’ 49 . 3.
Answers can include Knowing the market: customers needs and requirements. In pairs ask participants to define quality management. Need to produce goods and services. In a flipchart write participants' definitions and after getting all distribute handout one (definition) and compare with ideas participants’ definitions. Lead the group to agree on the customer role of defining quality and agree with the definition of quality as “the characteristics of a product which make it able to satisfy customers” needs. Ask participants the implications of the above definition in context of the Ethiopian small business situation.” 50 . Lead participants to agree on a common working definition of quality management. “Quality management is the capacity of an enterprise to achieve and sustain a level of product or service quality as defined by the quality policy of the entrepreneur. which meet those needs and requirements. Initiate discussion by asking participants who should define quality in business. On the flipchart write the statement “quality products and services are the results of quality management” and ask participants suggestions. the customer or the producer? 6. whilst keeping costs to a minimum. Give participants at least 10 minutes to come up with one definition by each pair. 10.view of quality as an inherent value to the customer or design quality. 5. 7. 9. Write the above mentioned definition in big letters and post it in an easily visible area of the training room. 8.
Raw materials: paper. Divide participants into four groups of five. Ask observers to join the groups.3. 3. Summarize by asking participants whether quality management is producer centered or customer centered. make sure they have read their guidelines and are clear with the instructions. 7. in each group one person will be observer.11. Distribute handouts 2. The product: paper envelopes (hold up a sample). Objective: to enable participants experience the various elements of quality management (as system in order to improve operational effectiveness. Labor: you 2. Lead the group to agree quality management as customer centered. glue. rulers. and explain (see instructions).and 5 the instructions and order forms and finance sheets. The Envelope Making Game: simulating quality management game. Show a sample envelope. Do not 51 . ensure that it is of excellent quality. Distribute the observers’ guidelines to the observers. Equipment: scissors. B. 6. 5.) 1. 4. and pencils. Have participants sit at tables in their groups.4. The objective of this exercise is for you to experience the importance of proper planning. The observers can stand behind their groups. for the exercise. efficient use of resources and high quality standards for the success or failure of a business. organization. Have 20 sheets of paper (5 for each group) ready for the groups to experiment. Explain that participants will play a game on envelope making in which they will do production planning. Have participants start the first round (planning).
with a sheet for each group indicating : 52 . They have 40 minutes for planning. Groups are also allowed to use one item each of available materials (scissors. After exactly 40 minutes of production time ask the groups to stop working and the observers to collect the envelopes. 8. tell them the results of the quality check and ask them to complete their calculation of profit and loss accounting on the finance sheets handed out with the instructions. Envelopes that do not fulfill the request standards should definitely be rejected.distribute them. 12. At the end of each period each group must have completed their order forms and submitted to the trainer. Number of envelopes planned. Make sure observers are still with their groups. but only if they ask for it. Number of envelopes delivered. 10. Ask groups to ask for the second round (production). Number of envelopes accepted. Each group should experiment. give them to groups that ask paper to experiment. ask the observers to help you check the quality and quantity of each batch of the envelopes and write the results in the forms you have prepared. and discuss how best they can achieve their goals. While the groups are producing . The paper should be marked in such a way that any envelopes made during this planning session can easily be distinguished from envelopes made later. 9. prepare a ‘quality check desk’ . Reconvene the groups. Distribute the requested materials and keep the request forms. formulate their plans. While participants take a break. Participants are not allowed to use any materials other than those they ordered and received from the trainer. and pencils) during this planning round. Time the round carefully. ruler. 11.
53 . Show transparency and distribute Handout 6. questions such as : C. In a general discussion ask participants other problems related to applying quality management in their business situations. Checking the quality of each product. Reconvene the groups and receive two points from each group Write the responses on the flip chart. Each group should bring two ideas. discussing Did you achieve your goals? What were your difficulties? Did everything go as planned? What went wrong? Did you try to reduce the quality standards? With what results? What would you do differently next time? during the two rounds. Recall some of the problems the group had in the envelope game that they also have in their business. 3.13. Planning. Applying quality management principles to your own business situations. Ask the observers to give feedback on the process they observed Ask each group to summarize their experience. They might include: Organization of different tasks. Ask participants to go back to their groups to work on the following task. Show transparency and distribute Handout 7. 1. 2. Ask participants to give their ideas on how to solve these problems. Limited resources. 14. Elicit ideas and write them on the flipchart.
5. Pair Task Think about your own operations. especially in your production process.) 54 . punctual delivery.) For practical purposes you can select one of the two businesses and the other person will listen to her friend’s ideas and discuss on the solutions. etc. In dividing participants into pairs it is important to keep participants in a similar business in one pair.4. relationship with workers. 6. When finished ask for examples from the group and lead a discussion by eliciting some examples and discussing possible solution to each example. Divide participants into pairs and give the following task. (Time 10 minutes. At what points in the whole process would it be appropriate to introduce quality control measures? At what point in your operations do you need to increase quality management? (Example record keeping. Allow pairs to discuss and write ideas in their workbooks.
If you want to be successful it is very important to plan properly. 1 cent per extra envelope (exceeding the agreed number). you must give a binding commitment as to how many envelopes you will deliver. Based on this you will know which and how much equipment and material you will need. Production round. Since they rely on you. your customer is the training institute. in this case envelopes. Planning The most important part of the planning is to find out how much you can produce during the 40 minutes. and to work efficiently with the least waste of resources. The exercise is done in two rounds: Planning: 40 minutes Production: 40 minutes. The market is clear. 1 cent penalty per envelope that you fail to deliver. The specifications are: 55 . 1. The contract conditions are as follows: 5 cents per accepted envelope. even if you produce a simple product.INSTRUCTION NOTES Planning and running a business is not simple.
2. 56 . The training institute is quality minded and only accepts envelopes fulfilling those specifications. use the upper part of the finance sheet to calculate whether your production will be profitable. and their prices are specified on the order form attached. At the end of the 40-minute planning period. Clean appearance. The equipment and raw materials are available. Not glued on the inside. submit your order form including your binding commitment. you again have 40 minutes. Size 17 x 14 cm (+ or . If you have enough time. At the end of this period. use the lower part of the finance sheet to calculate the financial results. Once you have this information. all envelopes must be submitted to the Quality Control Desk. Production For the production of envelopes. Tidy and well glued. Exact cutting.2 mm). The Quality Controller will tell you how many envelopes have been accepted and how many rejected. Exact folding.
ORDER FORM Item paper Scissors Rulers Pens Glue stick Labor (Per minutes) Total group member. per 40 Maximum Quantity Available No limit 3 3 5 3 Quantity Ordered Price per Item 1 cent 10 Birr 3 Birr 5 Birr 10 Birr Total Costs 57 .
Finance Sheet Forecast Expected sales: Less costs: Profits Results: Sales: Planned envelopes at 5 cents Extra envelopes at 5 cents Costs Planned total costs Additional unforeseen costs --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------______________ Total unforeseen costs Total costs --------------------_______________ Sales less costs = actual profit or loss --------------------- 58 .
OBSERVATION GUIDELINES 1. Low skills and motivation of entrepreneurs and workers. control the quality? 4. does someone take the leadership with out being asked? How is the actual planning done? Do they ask for paper and equipment to experiment? Do they plan to divide the tasks? Do they talk about/plan quality control? Do they organize themselves and the material and Do they work according to plan? What is actually happening during the production who is Does someone watch the time. 2. take notes. 59 . Lack of proper supervision and management. Join your group. observe what they do. Some points to watch during the planning round: What does the group do at the beginning of the round? Do they choose a leader. 3. Read instruction notes for the groups carefully. etc. what specifications. listen to what they discuss. Some points to watch during the production round: equipment in order to have an efficient production flow? doing what? SOME COMMON FACTORS AFFECTING QUALITY No transfer of information about customer requirements to production process: what products.
BASIC RULES OF QUALITY MANAGEMENT Aim To produce and deliver a consistent supply of high quality products to your customers at a competitive price. Low quality products are tolerated. This leads to customers having more confidence in your business ability to meet their requirements. which is very sustainable in the long term. No analysis of why there is low quality. it will never be easy for the competition to catch up. Inspection of final product at end but not during the production process. QM is about increasing both the quality of the product and the quality of internal performance. Quality creates a competitive advantage. Communicate this policy to the 60 . It is impossible for the competition to retaliate immediately. no attempt to correct production process. Methods Define a clear policy regarding standards for quality of products. and work practices.
Document and analyze all aspects of your business: identify and eliminate existing and potential malfunctions in the system. Maximize the use and motivation of your human resources: have regular meetings with your workers where you discuss ideas and strategies on how to improve the business.whole enterprise and train workers in how to meet these standards. Control your financial resources through regular record keeping and analysis. 61 . open communication with consumers and distributors. Always consider the needs of the customer as your basis for quality standards: continuous market research. Be able to respond quickly and adapt to market demand: be proactive rather than reactive: be your own best competitor and always look for ways to improve your product and your business.
tax licensing Preparation: At least two weeks before the training program the trainer must identify and fix appointment with guest speakers from the relevant regulatory and business promotion support agencies. Duration: 90 minutes Methodology: group and plenary discussion. Brochures registration. Business development support services. Identified the sources and means of accessing further sources for business development support services.4 on A Brief and Information business on Business and Development support services in Addis Ababa.Session 3 Operating Under the Legal and Regulatory Environment and Obtaining Business Development Support Services Objectives: by the end of the session participants will have the necessary information on How to operate within the law. Session overview: a. Regulation and legal issues. 2. Materials: 1. 62 . b. Handout 2.
63 . Experience also shows that participants are more interested and willing to have more time in the discussion. It is also important to agree with guest speakers on the contents and duration of their presentations. However. Obtain the most important brochures or guidelines available from the regulatory and support agencies. the time available and raise potential issues for discussion. the trainer and /or her organization must try to bring resource persons who can also speak with authority. Just in case enough copies are not available make photocopies enough with the number of participants. Normally it is advisable to have shorter presentations of about 20 minutes. as the time available from the overall duration of the training program is very limited trainers are advised to try to work within the available time though there can always be flexibility. At least three guest speakers from the regulatory agencies related to tax and business licensing as well as from the municipality should be available during the session.You must adequately explain to invited guests the objectives of the session. This will help participants to have more chance to raise questions from their actual experiences in business. It is also possible to make the event a kind of panel discussion if time is and adequate preparations are made agreed to have at least 2 hours. At least two brochures are suggested one from the Federal Inland Revenue Authority series of Tax Payer's Information Series brochures and another brochure on business licensing. In identifying and contacting guest speakers.
The trainer should be able to organize her own information on the locally available business development support services. telephone and fax numbers. This will help participants to bring out issues of their most important concern. Prepare small taken gifts to the guest speakers that will be given after a word of thanks by participants’ representative. the trainer can choose one or can identify other more suitable alternatives. participants should be able to get all brochures and handouts at least two or three days ahead of the session. chambers of commerce. 64 . etc. In both approaches. If available tray to obtain adequate copies of guides on business support services from relevant sources such as from trade and industry associations.4A. This will help to raise important issues and make effective use of the limited time. In an alternative approach. Brief information on the name and address (physical and mailing addresses of organizations). key contact persons. Session Guide: a. a guest speaker from at least from one important business support organizations can be invited. types of services provided and other relevant information can be prepared in not more than three pages weeks ahead of the training program. The trainer is therefore expected to make presentation and lead discussion of the second part of the session. the trainer needs to make adequate preparation with participants. There are a number of ways for the trainer to make good preparations. Two alternatives are suggested below. Depending on the situation. Regulation and legal issues.Prior to the session. A sample of structured information note for Addis Ababa is shown in Handout 2.
8. issues raised on obtaining better services and solutions suggested. 9.1. 3. After the presentations and quick reactions for participants' questions invite the guests to join the panel for a wider discussion on regulatory and legal issues. 6. solutions discussed and potential future actions. Finalise the session by summarising key issues raised. b. Issues like the involvement of the private sector in the provision of business development services should be raised for discussion. Make sure and inform participants that similar discussions can be organised in the future as a follow up to the training program. 3. Thank the guests preferably invite participants representative to give a word of thanks and a small gift. Invite guests for presentation and at the end of each presentation allow at least up to ten minutes. 4. ask participants for questions of understanding or clarifications. Business Development Support Services 1. 2. After the guest has made about 15 minutes of presentation invite participants for discussion. It is important that the trainer acts as moderator so that the discussion will not end in problems but something that can work for solutions. Conclude the session by summarising key services available. Also thank participants for their contributions and make a short break. 5. 7. Lead the discussion by recalling the previous module on the importance of developing networks for obtain existing services in a better way developing demand for new and better services. In case you have invited gust speaker introduce the gust and the purpose of the presentation. Stress that in order to improve existing business 65 . understanding and collaboration. 2. Explain the objectives of this session introduce your guests and explain why they are here.
10. Thank the guest for taking her time and the interest to support women entrepreneurs preferably and invite participants' representative to give a word of thanks and a small gift to the gust. End the session by thanking participants for the contributions. 11. Moreover.development support services and introduce new innovative services advocacy and lobbing must be strengthened among women SME operators. developing networking among themselves is by no means the only alternative to obtain better services. 66 .
Module WED TRAINING MANUAL 67 .
Duration: 1: hours Session Overview a. 1.1C. −Described the importance of marketing. Knowing about your competitors. Knowing about your customers. 68 . b.My Marketing Decisions. Defining marketing c. d. Tell participants that one of the key parts we will look at closely in this session will be marketing.Customer Checklist. The importance of marketing. Handout 3. Greet participants and start by presenting the session's objectives. −Listed the four parts of marketing mix.Session 1 Marketing Your Products Objectives: by the end of the session participants will have −Defined marketing in simple terms. 2. Handout 3. Ask participants to recall their discussion from module 2 (the key parts of managing a business).1A. Materials Flipchart and colored pens Overhead projector and screen Handout 3.1B.Competition Checklist Session process Introduction to the session.
After 10 minutes. I will learn how to make and sell bread. Let them greet each other and start to talk about business. ask participants to identify the difference between the two entrepreneurs.and market-oriented.1A and ask each participant to fill the forms.The importance of marketing 1. Select two participants for a role play. Ask them to discuss the products they now sell and why they choose to sell them. “I will sell a special cake because I know how to make it and I have a big oven”. Distribute handout 3. ” 2. After presentation. invite volunteers to share their ideas with the rest of the group. The one representing production orientation view will say. Write key points participants raised during the discussion and lead the group to conclude they should adhere to market orientation. One participant represents productionoriented businesswoman. let others comment whether the marketing decisions were production-oriented or market-oriented. 3. the other market-oriented businesswoman. Ask participants to give ideas on the advantages and disadvantages of being production. Individual exercise: my marketing decisions. because more and more people are eating bread.oriented. Give the following instruction to the players. 69 . In reply. the other businesswoman will say “ Oh! No in my case. Elicit ideas to label one as marketoriented and the other as production. Role-play: Production. If time allows presentations and discussions can continue with few more participants. Which reasons were most important? What customers needs do they satisfy? Give them at least 10 minutes to fill the forms.and market-oriented entrepreneurs. After the role-play ends.
Ensuring that your products get to your customers. Setting the right price customers will be willing to pay.Ask participants what marketing means to them? Write their answers in the flip chart. 2. Make sure the list includes the following: Understanding the needs of current and potential customers. Tell participants that the first thing in marketing is understanding customers and competitors. Elicit ideas to come up with a simple general definition of marketing that can summarize the above-mentioned ideas as “marketing is understanding and satisfying customers’ needs profitably". Producing and selling things that people want.A. Define marketing 1. 70 . Since market is all about customers and competitors in the next part of the session they will focus on knowing about customers and competitors. Communicating to potential customers the benefits of using your product.
1B – Customer checklist Tell participants: here are some questions about your customers. 1. which were difficult to answer? How can we find out more information? Ask participants: What other information do we need to know about our market? Lead participants to the idea that in addition to knowing about our customers.B. Knowing what people want to buy makes it easier to make products that sell. you must see who else is selling to them. Try to put yourself in the place of the prospective customer and think of how you will meet his/her needs. Knowing about your customers.What does it mean to know your ‘customer’? Tell participants to focus more closely on customer’s point of view. If you cannot answer any of them you may need to do some research of your own. 71 .or would like to sell them-and how you compare to them. 1. When participants have finished working with their customer checklists. Know about your competitors. C.Practice with customer checklist Distribute Handout 3. Tell participants: Now that you know more about your customers or potential customers. we need to know as much as possible about our competitors. Ask participants what do we mean by competition? Elicit a definition of “competition” write on the flipchart. try to answer as many as possible. Entrepreneurs need a picture of their customers when they make and sell a product. Participants may work in pairs if they prefer. ask which questions were easy. Lead participants to focus more closely on customers and groups of customers by asking questions such as: Who eats food? Who buys food? Who makes purchasing decisions? What kind of food products would interest these buyers? 2.
When they finished the individual exercise. the better you can position yourself in the market. Individual exercise: Let participants work on the following questions: Who are your competitors? What do you know about them? Can you name 2 facts about your competitors? Responses might include: − They offer a better service. Conclusion Ask participants to highlight key points learned in the session. write on flipchart.1C. tell them that knowing about their competition’s strength and weakness is important. Ask participants which questions were easy. 6. 4. defining marketing and the significance of knowing about customers and competitors tell participants that one way to get information is through market research. Your strength in these areas represents your ‘competitive advantage’. Ask them to complete their competition checklist in pairs by interviewing each other.2. When participants have finished. 3. quality. ask few volunteers to share information about their competitors. Explain: the more you know about your competitors. After few participants’ responses on the importance of marketing. Practice with competition checklist Distribute Handout 3. discuss the competition checklists. etc. which will be practiced 72 . Competitive advantage Ask participants: why is it important to know about your competitors? What is the most important information about your competitors? Elicit answers. and distribution. which were difficult to answer? How can we find our more information? 5. Ask participants: What is it important to know about your competition? Elicit ideas and write them on flipchart. If participants don’t mention it.competition checklist. because of packaging. − Their product is fresher than mine. etc. − They deliver to homes. in terms of price.
and discussed in the next session. 73 . By knowing about customers and competitors through market research we can identify our market opportunities and prepare a marketing strategy.
My Marketing Decisions Handout 3.1A Which Products Do I Sell? Why Did I Choose to Sell them? 74 .
1B Who are your main competitors? What products do they offer? How much do they charge? How long have they been in business? Are they busy? What are their projects? What is their strength?(why do people buy from them and not from you?) What are their weaknesses? (How are you better than them?) Who are their suppliers? Do they advertise? How often and where? Do they offer special promotions to attract customers? Are their customers happy with the current choice? How will your competitors react when you start to take over some of their business? 75 .Competition Checklist Handout 3.
People Do" Handout 3.1C 1. and other business. what ever they can get? 8. Who does the buying? Is the buyer the user? (Are they buying on behalf of some one else?) 5. Who are they? Are they housewives. which product do they use instead? 11. evenings. middle quality.What do customers feel is "missing' from the products currently on offer? 13.How much or how many do they buy? 15. afternoons. children.Is the market growing or getting smaller? (Are people buying less of this product or more? Are there more people buying this product or less? Why?) 76 .How much will they pay for the product? 12. Where do they get it at present? Only from you? From you and other competitors? 10. grand mothers. How many real customers are there? How many can you realistically sell to? 3. Where are the customers? in the next street ? In the next town? etc.Customer Checklist-"Markets Do Not Buy .If people do not use your product. Why do they want the product? 9. special occasions? 14. 7. What kind of product do they want? (high quality. How Many potential customers are there? For example how many people in this area use this product? 2. etc. what is their revenue? 4.When and how often customers buy? Once a day /week /month? Mornings. mothers. Where is the buying done? In the home? In a shop? In the market? 6.
Understanding market survey. After few participants responses by relating the sessions tell 77 . Session process: What is a market survey? 1. Relate the session objectives with the previous session by asking participants to recall the definition and importance of marketing. Practicing a mini market survey. B. Conduct a mini market survey.Module 3 Session 2 Practicing a Mini Market Survey Objective: by the end of the session participants will have: • • Described the importance of conducting market survey for a small business. Time: 1day (1 hours in class the remaining part of the day for market survey in the field) Session overview: A. Materials: What is a market survey? Why do small businesses need market survey? What are the information requirements How do you conduct a market survey? Practising a mini market survey Suggested methodologies: −Presentation. Greet participants and explain the session objectives.
2. Write participants ideas on the flip chart and make sure that among the answers include: − Knowing about customers and competitors. − To be aware of trends continuously by being aware of their environment. Tell participants that in this session they will improve their skills in gathering and analyzing a market survey. -The small customer base makes it easy to get feedback from small people and likely leads to complacency. Ask one of the participants to give appropriate term for the process of gathering and analyzing information about customers and competitors. 4. 78 . overlook the big picture. Answer "market research or market survey". Elicit ideas from participants to include − To know customers very well. Why do small businesses need market survey? 1. Continue by asking participants what is the first thing they do to prepare their marketing plan or make important decision on the appropriate mix of the marketing mix elements. − To keep an eye on competition. Let participants give reasons for market survey. But first they need to establish reasons for conducting market survey. -Tend to focus on day to day routine problems. Ask participants “Why do many owners and managers of small business are not enthusiastic in market research?” Write participants responses on the flipchart to include the following.participants that this session will serve as a foundation for improving their marketing skills. 5. − Understanding about the market and marketing situation. Elicit answers to include by "gathering and analyzing data about their customers and competitors". Ask participants how they would know about their customers and competitors. 3.
hence prefer heavy reliance on informal sources. ask participants to list in pairs what kind of information they have to gather to understand their competitors. 79 . Allow them to work for about 10 minutes and write their responses on the flip chart. Distribute Handout 3.2 B and check participants' responses with the Handout. retailers. How do you conduct a market survey? Ask participants' experiences in how they gather information about their customers and experiences. friends and family. Elicit answers to include By continually keeping track of customers' preferences. competitors. Gathering secondary data from statistics bulletins or similar studies. Who should conduct market research for the small businessperson? What are the information requirements Ask participants to list in pairs what kind of information they have to gather to understand their customers. restaurants. Allow them to work for about 10 minutes and write their responses on the flip chart.-Being suspicious of formal market research and fear of high cost. hotels. When should market survey be conducted? What are the methods of informal information sources? Listening and observation are the main tools. In another pair task. by casually discussing our product and our business with as many people as possible: customers. Distribute Handout 3. wholesalers. potential customers. In another question ask participants to give their experiences on why many small businesses heavily relay on informal sources information? And though information is vital for the survival of let alone small businesses but also big businesses however they are notoriously variable. Conducting a formal study such as by gathering primary data by directly interviewing.2 A and check participants' responses with the Handout.
Practising a mini market survey 1. Form four small groups (4-5 five participants in each group) and distribute handout 3.1B Sample Market Research Questionnaire 1. It is important that your work is as brief as possible and the following are your guidelines. Identify information sources (from where it can be collected) Describe how the information will be used. 3. 2. Give reasons why the information is wanted. Handout 3. Personal data (these questions can be asked at the end) • Name of the interviewee: • Sex: • Age: • Position in family: • Family size: • Address: 80 . Decide what kind of information is needed for the study. Group Task 1. Try to answer few key questions such as: how many potential customers are there? What is the average purchase? What are customers’ needs? Which is the right place to sell? What is the right price? What is the right promotion? In getting information on competitors try to find information on key factors of competitors’ marketing mix elements. 4.2C (Wubit and the Woreda Bread Market). Ask each small group to read the case carefully and work on the following questions. In studying the customers you may not have many questions.
• Level of education: • Income level: 2. etc. packaging color… What price would you be willing to pay? Have you seen other similar products in the market? Describe brand name. 7. 6.. and quality. smell. 4. price. like? Describe the size. • Profession: Have you bought or would you be interested in buying/using this product. feel. 5. 3. why? When do you buy it and how often? Will you buy it in the future? Are you satisfied with this product? Would you change it? What is your ideal product? Describe it: what does it look. sold where? Do you usually look for new products? How do you find out about new products? Other questions: 81 . 8. taste. 9.
3. Price − What is their price? − Is there a price competition? − Do they make discounts? 4. 5. Place − Where are they located. Who are my competitors? 2.2B Information on competitors 1. − How do they promote their sales? Such as displays. − Do competitors have skilled sales persons? 6. Product − Their products − Product quality − Packaging. − Can they reach customers’ effectively. and other types of sales promotion tools. Promotion − What kind of advertisement methods they use and how effective they are. The marketing mix of competitors (conclusions from 2-5) 82 .Handout 3.
Business was good I had a good turnover and profit. she believes the quality and size of bread do not correspond to the price. She knows her informal observation must be used to finalize the market survey.Handout 3.2C Wubit and the Woreda Bread Market Wubit has saved most of the money she got from the boutique she sold one year ago. she started the business of producing and selling bread in the Woreda she lives. The place has also the advantage of many passers by potential buyers. But later on some rich businessmen came and opened more and more boutiques. Our sales slowly declined with our profits and I thought unless I decide early I will in lose. Though the business had a fair start she also knows she must study the market in a more formal way. She always says to her friends ”when I opened the boutiques in this area the market was very good. As a result. family and many Woreda residents encouraged her when she was talking about her interest to start the bread business. The number of boutiques increased and we started to compete for few customers. Besides she knows the bakeries in town are few and of a monopolistic type. This time. However for some time. Friends. Will you help? 83 . The first few boutiques were also successful. So I sold the boutique” . She always says. There were few boutiques in the area. She says she has to improve her knowledge and skills to conduct her own market survey. She is literate and numerate. her response was that her decision was right and she had no regrets. She needs your support. “I am a good observer and listener”. Her chances of getting credit from banks will also depend on the justification of a good market. She knows the people have to travel long to buy bread within the Woreda. she was seriously thinking to start another business and she succeeded in doing so. When her friends asked her reasons for selling the boutique.
Get participants’ responses on each product in the following way: People buy clothes to satisfy the need to wear something to protect from cold or hot weather conditions. A. 84 . etc. Session process Introduction Introduce the session by presenting the objectives and the session’s relation to the previous and next sessions. Ask participants why customers buy goods and services? In asking this question give specific examples such as why people buy clothes. Also tell participants that the session is the first element of the marketing mix and must be seen as part of one ingredient in preparing a successful marketing strategy. etc. 1. −Summarize key issues for preparing marketing strategy. Suggested methodologies: individual and group exercise. Materials: Mini market survey reports. Finding out and satisfying customers needs. radio.Session 3 Developing Your Products and Services Objective To enable participants to identify the issues they must consider in developing products and services that can satisfy customers’ needs. Duration: 1 hour Session overview: −Finding out and satisfying customers needs. to look attractive. shoes.
Lead the discussion to reach the conclusion: the reason for the existence of any business is to satisfy customers' needs profitably. Now ask the small groups to recall their findings on the results of the mini market survey they have conducted on bread. Develop means to meet customers' needs: Raw materials. 3. etc. type of packaging. Customers' needs: the type. You can write the following guiding points on the flip chart or prepare transparency ahead of the session. get comfort and look attractive. seek new ideas. The groups must use their own survey results related to the product aspect of the market mix. 4. invite all participants for a general discussion in which you lead participants to decide on the product aspect of marketing strategy for bread. People buy radio to satisfy the need to get information and entertainment. Continue by adding more products and services and let participants give their reasons for why people buy them. place. 2. etc. After a few minutes of discussion. Since the groups need some time to work. Tell participants that although other elements of the marketing mix such as price. Keep track of customers' needs and wants: which products/services are selling well or not. etc. production methods. 85 . etc.People buy shoes to satisfy the need to wear something to protect their feet. After the presentations of all groups. They might also need guidance on how to single out the product aspect of the bread market survey. Let them consider a woman planning to start a bakery business in the Woreda. ask participants what should be the objective of any business. promotion are equally important they will also be discussed in the next session. give them at least 10 minutes. Providing what customers want and making decisions to meet changing needs. quality and quantity of bread.
e. Ask a few participants to mention key points they learned in the session. i. conclude the session by linking with the next ingredient of the marketing mix. 2. 86 . If participants provide a good indication of meeting the objectives. Check if there are still important points to be raised or not clear enough to apply in their business situation. 3. 4. Ask participants how they are going to apply the product aspect of marketing mix elements in their own business situations. Write their responses on the flipchart. Participants will emphasize the benefits of studying their customers and competitors to find out and satisfy their needs and wants. 1. If participants raised such issues allow sometime to find ideas that satisfy them or suggest alternatives or follow up support that can be done as part of the training program. price.B. Summarize key issues for preparing marketing strategy. Encourage participants to comment on the importance the market survey experience they had to design marketing strategy. Let few volunteer participants give their ideas and invite others to comment.
Tell participants that every price contains its cost of production and a reasonable profit. Practicing price setting Materials: Handout 3.Session 4 Pricing Your Products Objective: by the end of the session participants will have buy. Defining a price B. Duration: one hour Session overview: A. Defining a price 1. Elicit answers to include the amount of money customers are willing to pay for a product or service or price can be the customer’s definition of value. A. Group exercises • plenary Defined price from the point of view of customers. Identifying factors in setting prices: C. Practice at least one pricing technique. Outline issues they must consider in pricing products so that customers Session Process: Introduction Ask participants the meaning of a price.4A Pricing Ground Rules Suggested methodologies: • • Brainstorming. 87 . It is also important to tell participants the linkage between the costing and breakeven analysis sessions of the next module.
3.2. In a pair task ask participants what considerations they are going to make in determining the right prices. − Cost of production (internal). − Seasonal fluctuations (external) − Psychological factors (external) − Selling and distribution cost (internal). Based on the definition of pricing ask participants' experience in setting prices by small business operators. − Credit terms and purchase discounts (internal). etc. 2. − Market factors: supply and demand (external) − Sales volume (internal). − Competitors' prices (external) − Economic conditions (external) − Business locations (internal). Let participants also give their ideas for improving better practices for small and medium enterprises. − Customers' price sensitivity (external) − Product communications (internal). particularly the experience of using information in setting prices. Identifying factors in setting prices: 1. Tell participants that some of the listed factors influencing pricing decisions are within the control of the businesswoman 88 . It must therefore be coordinated with other marketing mix parts. B. which they bring to customers. It is important to emphasize price as just another marketing mix tool and its decisions are also affected by other marketing factors such as product design. invite one representative of each pair to tell their points to the rest of the participants. Write participants ideas on the flipchart and lead the group to develop key factors that must be considered for setting prices. Make sure that the following points are elaborated in the discussion. promotion. Allow at least 10 minutes for participants to generate ideas. Agree with participants to define pricing as setting value of products. After 10 minutes. 4. 3. distribution. − Product quality and image (internal).
Distribute Handout 3.35. Once the trainer made their tasks clear they can join their respective small groups they have formed for the mini market survey. At the end of 15 minutes. Give them newsprint and marker to present their results. D. 4. current profit maximization. Elicit participants ideas with reasons such as survival.while others not. product quality leadership etc. the task of each small group will be to set the selling price of 100 gram of bread using the above mentioned factors. Check that the groups have a pricing objective and they have considered both internal and external factors before 89 . Let participants compare the handout with participants’ ideas. reconvene the larger group and invite a representative of each small group to present their results. 2. One-by-one. The groups will need at least 15 minutes. Next to each word as written above in italics) write as internal (controllable) and external (uncontrollable) factor. Defining objectives for setting prices: Stress that the end result of identifying the influence of different factors in pricing is to decide on the objectives of setting product prices. 3. Practicing price setting 1. Assuming the cost of producing 100 gram of bread is Birr 0. size and quality of bread produced by bakeries they know. Ask participants some of the potential objectives of pricing. for which they have done the mini market survey. C. It is important that the groups should not be allowed to share information. It is also further assumed that the bakery will produce and sell one type and size of bread alone.4A "pricing ground rules" and tell participants that though pricing can have different objectives and approaches there are also generally agreed guidelines to follow. let participants identify factors as controllable and uncontrollable. In setting the price participants can use their own experience in the buying of bread and the price. Tell participants that they are going set the price of bread.
Write participants’ responses on the newsprint. Let participants discuss the implications of setting a lower price at the beginning and suggest ideas. Also ask participants whether they can apply the pricing approach they have discussed. If participants conform please conclude the session by thanking for their participation. 90 . The situation is something like the market place. Ask questions such as what will happen if the bakery starts by setting lower prices. ask each participant to give at least one point they have learned in the session. E. At the end tell participants that the differences or similarities observed in the prices show the different objectives and factors considered by each group. As part of checking participants’ learning. Summarizing and concluding the session.deciding the price. Make sure that participants mention key learning points.
Price must cover costs.Handout 3. 91 . Prices must be set to preserve order in the market place. longevity. Prices must be to assure sales. The best way to lower price is lowering cost. It must reflect the dynamics of cost. demand changes in market. 2. etc. Price cannot be set for competitive operations alone. end use must be judged continually.4A Pricing Ground Rules 1. 6. 4. Product utility. Price must not be static. 5. 3. maintenance.
5B. Pair and group discussions. 92 . Tell participants that in this session participants will discuss how to improve their marketing skills by reaching their customers in the right place. Identified the most appropriate distribution channel(s) for the product.5A. Identifying Different Channels of Reaching Your Customers.Session 5 Reaching Your Customers Objectives: by the end of the session participants will have: Learned about the various forms of distribution available to them. etc. B. Reaching Your Customers. A. time. Recall from the previous sessions that participants have worked in selecting products and services that can satisfy customers' needs at a price customers are willing to pay. Handout 3. Duration: 1½ hours Session Overview A.Some Criteria for Selecting Appropriate Channels of Reaching Customers. C. Suggested methodologies: Session Guide: Brainstorming.Different Channels of Reaching Your Customers. Choosing the Most Appropriate Form of Reaching Your Customers. Introducing the session - - Explain the session objectives and quickly review the two other elements of the marketing mix. Materials: 1. Handout 3. 2.
5A. Reaching Your Customers. like other businesspersons do. Joining marketing cooperative.Elicit the objective of a place as choosing the means of reaching customers in marketing management and lead participants to agree to the objective as “making products and services always available and easy to buy wherever the customers are”.In a pair discussion. Answers could include high cost of personal selling. Using the local market place. ask participants to list at least three most important criteria they use in choosing a specific channel of reaching their customers. C. Participants can use examples from their own business situation. have chosen different methods of reaching customers. 2.Different Channels of Reaching Customers and compare the handout with participants’ contributions. Selling door to door. Through the wholesaler. Choosing the Most Appropriate Form of Reaching Your Customers. Accept at least one criterion from each pair and write the responses in the flipchart. answers could include: A shop. because distributors have experience and knowledge of the market. 1. Answers can include: 93 . 2.Ask why participants.Ask participants the significance of place in a marketing situation. 1. 3.C. List participants responses.After main types of channels of reaching customers are mentioned by participants Distribute Handout 3.
) units to large customers.It is likely that participants in all four groups and even for the product might suggest different means of reaching customers such as selling door to door. 3. etc. Criteria could include time. non-durable. It is also important for participants to develop criteria before they make decisions. transport cost. The type of product (durable. etc. technical or The volume and frequency of sales (selling in small simple. big customers (large quantity buyers) such as hospitals. wholesalers. Ask them to list the advantages and disadvantages of each channel of reaching customers. cooperative shops. 4. hotels. at intervals etc. availability of customers.After 15 minutes reconvene the larger group and ask participants to make a five-minute presentation on the decision they made by choosing the best way of reaching their customers. 5.Ask participants to go to their respective group in the market survey exercise and ask the group to list the means of reaching or delivering their products or services to the customers.) The buying habits of customers. Ask the rest of participants to give their comments to improve the suggested means of reaching customers. in bulk. retail shops. 94 . etc.
(Consumer Goods) Producer Consume Producer Retailer Consum Producer Wholesaler Retailer Consumer Produce r Wholesaler Wholesaler Retailer Consu 95 .Handout 3.5A Different Channels of Reaching Your Customers.
5B Some Criteria for Selecting Appropriate Channels of Reaching Customers. 1. ♦ experience: a business. which cannot afford and does not have experience in marketing. would benefit from using an agent or wholesaler. Selling and distributing your products will depend on several factors: How quickly does your product need to be consumed. Selecting the most appropriate method of distribution? Consider these factors first: ♦ Number of customers you want to reach: agents or wholesalers can reach more customers than a small producer.Handout 3. much this will cost? 2. Packaging requirements for each method of distribution. ♦ Perishability: perishable products require a more direct Producer's financial situation and marketing and short distribution route to the consumer. from a shop. Will people buy it on its own or do they expect to buy it What your production capacity is? What your marketing capacity and marketing network are? Your ability to store the product and transport it and how The cost of the different alternative distribution methods. ♦ Businesses maintaining control over promotion and price: these types of businesses use a more direct distribution 96 . therefore these would be more effective if you want to reach many customers in a large geographic area. which sells other things as well.
Each different channel will have different costs. you need to find out what these are. 97 . sustainable and profitable service for your distribution needs.system. ♦ Financial situation: distributor's financial situation. ♦ Cost of alternative channels: cost of the different alternative channels need to be assessed in order to identify the solution that offers the most reliable. marketing experience and network.
Session 6 Duration: 2 hours Session overview: Analyzing different methods promotion Analyzing Problems with Advertising and Sales Promotion for Small Businesses in Ethiopia. List key differences between advertising. Prepare promotional plan for a specific product. Identify the Most Effective Method of Promotion for their Business. sales promotion and personal selling. Tell participants that in this session they will have activities to help them improve their marketing management skills 98 . price and place. 1. Suggested Methodologies: Group task Pair task Plenary Session Guide: A. Describe the advantages and disadvantages of advertising for small and medium businesses.Promoting Your Products and Services Objectives: Describe the importance of promotion for improving the marketing situation of small businesses.Start the session by introducing the session objectives and reviewing the other three marketing mix elements: product. Analyzing different methods promotion.
sales promotion or personal selling.by focusing on the fourth important ingredients of marketing mix. Group task 1. 3. i.e. Time: 15 minutes. After each presentation allow the other participants to give their comments. 2. The group size may range from 3-7 participants depending on the type of businesses represented in the training program. Give each group a marker and flipchart paper so that they can put their ideas for presentation.Ask participants to form small groups by similar types of businesses. (non personal presence) -Advertising Leaflets (non-personal presence) –Advertising. (non personal presence) -Advertising Posters.Reconvene the larger group and ask each group’s representative to make a presentation. 3. promotion. List any of form persuasive activity you do in your type of business to influence potential customers to buy your products and services. (non personal presence) -Advertising Newspaper. (non personal presence) -Advertising Radio. On the flipchart write any improvement suggested by the larger group on each type of business. 2. Each can come up with the following activities for its type of business: Television. (non personal presence) -Advertising Sign boards. Distinguish the nature of each activity whether it requires personal or nonpersonal communication with potential customers. Identify each promotion activity as advertising. 99 . It is ideal to limit the number of groups to not more than four.
presence) -Personal selling. (non personal presence) -Advertising Attractive window display.(personal presence) -Sales promotion Training in how to sell a product or a service. Elicit ideas to come up with the following type of simple definitions. 100 . presence) -Personal selling.(personal Making shops clean. sales promotion and personal selling. 4. (non personal presence) -Advertising Magazines.(personal presence) -Sales promotion Participate in trade fairs and exhibitions(personal presence) Demonstration. presence)-Personal selling. Continue to lead the group to define advertising. -Personal selling.Ask each group’s reasons for identifying each promotional activity as advertising. tidy and attractive. After-sales services and maintenance (personal presence) – Good meeting and greeting of the customer (Personal Being enthusiastic and alert to opportunities (personal Giving adequate attention to customers (personal Personal selling. sales promotion and personal selling.(personal presence)Good style of sales presentation (personal presence) Follow up customer satisfaction (Personal presence) -Sales promotion presence) -Sales promotion Sales promotion -Personal selling. Direct mails.
5.is a short-term effort to attract potential customers’ attention to encourage them to buy the products of the business.After 10 minutes. Personal selling. Recall that in the previous exercise.is a process of non-personal communication of ideas with potential customers to create and sustain demand for products and services. Advertising. 1. Ask participants to return to their product or service groups and give them the task of preparing a promotional plan. Analyzing Problems with Advertising and Sales Promotion for Small Businesses in Ethiopia. set good prices and decided on a good system of 101 . Identify the Most Effective Method of Promotion for their Business.Tell participants that in this session advertising and sales promotion will be focused on.In a pair task ask participants to work on the following task. participants have improved their product.is a personal contact between sales person and potential customers resulting in sales. The next session will complete the marketing promotion plan by working on improving personal selling skills. 1. ask participants to give responses . B. Sales promotion. 2. Allow at least 10 minutes for participants to work in pairs. C.
what product or service. Give each group flipchart papers and markers. The promotional plan should focus only on integrating advertising and sales promotion activities. Task assignment: Product or Service Group Your group has two tasks to perform within the next 20 minutes Task 1. 102 .Prepare a marketing promotion action plan for your product (who the target customers are. 2. Each group should also prepare and demonstrate at least one type of advertising activity.reaching customers. where to sell and when to sell) Task 2.Decide at least two promotional activities. Your group is free to use whatever method you believe will be effective in accomplishing the above stated two tasks above. they should have 20 minutes to complete the two tasks.
and the message of the poster. Once the pairs have finished. the product. Give them another 20 minutes. 103 . Accept possible comments from the plenary.3. 4. At the end of 20 minutes. They should describe the targeted customer groups and justify their reasons. let the participants prepare a poster. The task is to identify the customer group. In pairs. bring the four groups together to report on their findings in approximately 5 minutes. put all posters on the wall and ask participants for suggestions for improvement.
3. Simulation exercise: "the three saleswomen" Preparation The trainer has to prepare at least three types of products ahead of time. You prepare the products based on the players’ interest. The products can be candies. Duration: one hour Materials: Suggested methodologies: simulation Session process: 1. etc.Session 7 Improving Your Personal Selling Skills Objective: By the end of the session participants will have Identified and practiced techniques to improve personal selling skills. 2. has reached where the customer can buy it as well as advertised and well displayed. having a price that can sell the product. Encourage other participants to buy. 104 . Give them the following further instructions. Since the objective is to improve the personal selling skills of the participants. You can also prepare at least three volunteer participants to play in the game. Stress that a product satisfying customer needs. the selected or volunteering participants can make a good display of their products. Invite the three volunteer players and tell them that their role is to sell the products they have within 5 minutes. Introducing the session Explain the session objectives and relate the session to the four marketing mix elements. beauty soaps. still has no guarantee that it will be sold successfully. Display their products in an attractive manner. Describe their products Tell the price. that can easily be available for the training purpose.
7. Conduct the game for at least 30 minutes. Pair Task Identify problems associated with ineffectiveness of most advertising programs in Ethiopia. Depending on the availability of time. If you think most responses indicate that participants are serious to improve their personal selling skills. Each buying group will have five minutes to perform its role. Give your comments by relating to each advertising media.4. etc. Ask participants what new techniques they have learned to improve their personal selling skills.7 and ask participants to compare the characteristics of a good salesperson with their experience in the game. ask why selling skills are important. packaging. production methods. 8. Write the strong points and weak points of each seller and further ask participants to give ideas to improve selling skills. Write participants responses on the flipchart. 6. invite all the participants for discussion and ask the performance of each as a salesperson to the other sellers. Before playing the game tell participants that they can take notes if they find anything important for discussion. For one saleswoman at least 3-5 participants will act like customers. Also. Distribute Handout 3. 9. inquire about ingredients. The sellers must be as persuasive as possible: try to close the deal. price. and taste. For the two saleswomen there will be 3-5 different customers for each. Tell participants that the buyers must be as difficult as possible: complain about quality. conclude the session by thanking for their participation. After participants have played the three rounds. Most of the participants will be observers. 5. What alternatives do you suggest to improve advertising practices for small and medium businesses? What suggestions you can give to improve the effectiveness of sales promotion activities? 105 . Each saleswoman will play the game one after the other. you can give few extra minutes. hygiene.
• Do all you can to ‘close’ the sale. talk about the important specific benefits and advantages of your product to your customer. elicit her objections. Customers are the most important part of your business: without customers you have no business. Do not discuss price until after you have discussed the advantage of your product. • Take responsibility for yourself. • Offer what the customer wants. not on price. • Always know all about your product. and know all about the customer and their business with you. • Prepare for each sales call. • Listen to the customer. have an objective. do not blame the suppliers.7 Rules for effective personal selling: what makes a good salesperson? • Create the desire to buy your product. your staff or your customers.Handout 3. • Base your promotion on quality. Focusing exclusively on low price implies that quality is also low. not product-oriented. do not take ‘no’ for an answer. • Earn the confidence of your customer: make your customer feel important. and to her customers if she resells your goods. do not criticize competitors’ products s/he bought before. and deal with them in a pleasant but firm manner. • Be market-oriented. Remember! Good sales techniques require practice. not what you want to provide. and carry samples if you can. 106 .
MODULE Developing Your Financial Management Skills 107 .
WED TRAINING MANUAL 108 .
Session overview: A. 109 . If participants are from three main lines of businesses: manufacturing. Identify different types of costs in producing goods and services. B. Calculate the costs of a product. Listing and identifying costs in the business. ask participants to list all their costs in their respective businesses. Duration: 2 hours Materials: −Handout 4. trading and services it will be useful. that the cost of a product or a service is what the owner or operator has paid for its production and the price is used to sell it above the cost. Emphasize. Calculating the cost of a product.1B Recorded Expenses for the First Month of Operation. Suggested methodologies: −Case study. Let few participants give answers by giving specific examples. −Pair and group discussion.Session 1 Calculating the Costs of Your Products and Services Objectives: by the end of the session participants will able to List all costs involved in their businesses. Ask participants to identify the difference between the cost of a product and the price of a product.1A Case study: Wubit Bakery −Handout 4. In another question. 2. −Presentation Session process: 1. Ask three volunteer participants to tell the rest of the group. 3. −Plenary. with examples from the participants. Give at least 5-10 minutes for this individual exercise. Welcome participants and explain what the session is about by reading the objectives.
Water bill. write the type of business and under it write the costs of a product. Telephone expense. Flour. Depreciation. etc. Separate costs that will vary in proportion with the amount of bread produced. Tell participants that they will do the tasks in pairs and they have ten minutes to complete the task. Stationery. Interest on loan. House rent. Adding costs or removing non-cost items can improve the list. Identify costs remaining the same or do not vary with the amount of bread produced. Ask each volunteer to name all the costs relating to producing and selling a product or a service. 6. 5. On a flip chart.However. Sugar. 110 . Packaging (plastic bags). Ask the remaining participants to comment on the list of costs presented. electric energy for the bakery machine. Salary. Oil. Distribute the case study (Handout 4. Electric bill. Below is the example of a woman in a bakery business. Check that all participants are clear with the case study and the given tasks.2B) and ask one volunteer who can read clearly and loudly read the case. Elicit answers to include wheat flour. At this stage. Note that neither the list below nor participants' examples can be exhaustive as costing varies with specific businesses. costs are listed without any categorization. Selling expenses. 4. Salt. if participants are from one line of business one or two participants will be enough. workers on the bakery machine.
7. After 10 minutes, invite one participant from three pairs to give their responses on the three tasks. After each presentation, ask whether the remaining participants agree or have other suggestions. 8. Guide the discussion to agree on the following responses: List of costs that do not vary with the quantity of productions includes saleswoman salary, guards’ salary, cleaners’ salary, insurance, rent, office stationery, repair and maintenance and telephone charges. Tell participants that since these types of costs do not proportionally vary with the quantity of production they are called fixed costs. Ask participants to justify their answers by taking each cost that regardless of the quantity of bread produced small or big the fixed costs will not change. 9. Costs that vary in proportion to the quantity produced include producer workers wages, wheat flour, oil, sugar, yeast, salt, electric power for bakery machine and spoilage. 10. Now ask participants why costing is important? Elicit ideas and write participants responses in the flip chart. The following reasons need to be included: Without knowing the true cost of a product it is difficult to set a price. To identify areas for reducing cost of production while still maintaining quality. To make important decisions on the business such as change of equipment, raw material, adding or reducing workers, etc. 11. Based on your exercise what are the benefits of putting costs in different categories. 12. Tell participants that they have listed all costs involved in producing and selling bread. They have also agreed on the importance of costing to improve their businesses. Tell participants that now they will do costing exercise for one product using the case study they have used for classifying costs.
13. Stress that the most important thing in costing is for each type of cost to know the quantity used and its unit price so that it will be possible to know the cost incurred by multiplying them. 14. Form four small groups involving 4-5 participants is each group. Give them at least 5 minutes to understand the case and their tasks. Once all groups are clear with their task, give them at least 20 minutes to complete the exercise. You will have to visit each group and support as some participants might have difficulties in going at a similar pace with the rest of the group members.
Small group tasks 1. Categorize costs into fixed and variable costs. 2. Estimate the variable cost per unit of bread. 3. Estimate the fixed cost per day or per unit of bread. 4. Suggest ideas based on your findings.
15. When all groups have finished the exercise, ask each group’s result. The cost of producing one unit of bread in Wubit Bakery. If all groups have found the correct answer, ask one representative to come and show how they have arrived at that figure. In case all groups did not get the correct estimate, slowly guide the discussion to reach the correct figure. 16. Now you have calculated the total cost of producing a unit of bread. The owner W/o Wubit can use the cost to decide on her selling price; what are the other factors she should think of before making her pricing decision final. Tell participants to relate their responses with price session in the Marketing Module. 17. In the next session, they will practice a technique called breakeven point to relate the fixed and variable costs with the quantity of production and prices in order to decide profitable prices.
Handout 4.1A The enterprise newsletter One More Bakery for the Woreda It is over one month since a new bakery was opened in Woreda A. Wubit Bakery, as the name suggests, it is owned and operated by W/o Wubit. It is a small size bakery using modern technology. She decided to start the business after her market survey proved the presence of a big demand for bread in the Woreda. Since there is only one bakery in the area, the community leaders have also encouraged W/o Wubit to start the business, as the opening of a new bakery would reduce the distance people have to walk to buy bread everyday. She rented a house earlier used for distributing alcoholic drinks in the area. The owners decided to close and rent the house for another business. Some modifications were made at the owner’s expense to make the house fit for producing and selling bread. Increasing scarcity of fuel wood and the absence of cheap and abundant traditional energy sources have forced the owner to opt for an electrical oven. One reason for buying the machine was also its power consumption. Compared with its generation of similar machines the machine preferred was economical and effective in the use of energy. The imported oven has the capacity of baking up to 10 quintals of flour bread per day. A close relative has donated electrical mixing machine, weighing and measuring scale, two large tables, side planks, knives, funnels, brushes, bread tray, bread display cabinet, chairs and cash box. The bakery started operation with 7 workers including the owner manger. There are 4 bakery workers: 2 measure and mix the ingredients and operate the mixing machine, 1 person operates shaping and cutting dough and 1 person has the baking responsibility. The owner, 1 sales person, 1 nighttime guard and 1 cleaner are supporting operation by selling bread, buying raw materials and handling administrative services.
Electric oven 000 Donation Bank loan 15. For the moment. the credit buyers themselves will come to take the bread every day. for various reasons producing and selling bread was delayed until September 17. all the money she obtained from different sources to start the business. 1994. The operation started with the daily production of 100-125 kilograms of bread per day. tools and furniture 75.000 2. It is a daily production process.She bought supplies that can last for one month.500 114 .000. 1994 she had used Birr 150. The owner has the following information in her notebook on the sources of her business money and how she has used the money just before starting the business. The majority of the population commonly prefers this bread. W/o Wubit negotiated with one Women Cooperative Restaurant to supply bread on credit. the bakery produces a 100-gram bread that can also be used for making sandwiches. She has to buy all supplies at least one week before it is depleted although she can get supplies within three days since there are flourmills in the area. She will collect her credit sales at the end of the month. The owner manager decided to start the business on the first day of the Ethiopian New Year in 1994.000 Cash in cash box to pay for expenses Birr 11500 0 15. Before Meskerm 1. For the time being. However. It will gradually reach up to 1000 kilograms of bread per day. The cooperative can buy up to a credit limit of Birr 200 per day. Sources and uses of money for Wubit Bakery Sources of the Uses of the money money Own savings Birr60. It works 7 days a week all day round throughout the year.000 Equipment.
pay expenses.) Total 7.000 Birr 15 0.500 10. sugar. etc. Supplies (flour. salt. etc. 00 0 115 .Total Birr 15 0. 00 0 Cash in bank for buying supplies. yeast. oil.
Salary of 4 bakery workers including one Forman Birr 45/day 2. Plastic bag for one month for selling bread 10. Owner's salary 22. oil 1 liter and yeast 0. Yeast per 0. Owner salary 13. Insurance for one year 16.Handout 4. etc salary 17. Annual trade license 18. For 100 kilograms of wheat. Repair and maintenance for the month 19. Water bill for the month 9. Stationery for the month 21. Electric bill for the oven and mixer for 14 days 3. sugar 1 kilogram. Oil per liter 7. Bank charge 2. Flour per kilogram 4.5 kilogram. House rent for one month 12. Technical information The bakery is producing 1250 units bread from 100 kilograms of flour.1B Wubit Bakery 1. Each bread weighs 100 gram. Telephone 14.5 kg 8. Sugar per kilogram 6. Annual interest for bank credit 11. Recorded Expenses for the First Month of Operation Expenses in the first one month of operation 1. To bake 100 kilograms of flour the oven electric cost is about Birr 28 The price of each one hundred-gram bread is Birr 0.5 kilogram. Electric bill 15. Sales person. Birr 1080 682 275 2 5 7 15 50 120 7500 1500 1500 70 75 2500 750 180 100 300 150 1000 1500 1500 300 250 116 .50. Municipal license fee 20. Transport cost 26. guards. House rent for one month 25. Salt per kilogram 5. the ingredients are salt 0. Advertisement for signboard 23.
Calculating Your Breakeven Point
Objective: by the end of the session To enable participants to calculate the volume of sales at which the business neither makes profit nor losses. To be able to analyze the implications of change in prices and costs on sales and profits. To enable participants to calculate their own businesses' break-even point Session overview: A. Understanding breakeven point. B. Practicing breakeven point. Duration: One hour Suggested methodologies: −Individual exercise. −Group exercise. −Case study Materials: −Handout 4.1A Case study: Wubit Bakery −Handout 4.1B Recorded Expenses for the First Month of Operation. Preparation:
Check that participants have the case study on costing in session 1(handouts 4.2A, 4.2B and the results of the costing analysis they have done for Wubit Bakery.
Session process: Understanding breakeven point
1. Introduce the session by explaining the session objectives and linking it with the other sessions in the module. It is important particularly to link with the costing session. Recall the costing session in which you will ask participants on the meaning and importance of fixed costs and variable costs.
2. Get participants’ responses based on the case study they have done on costing for Wubit Bakery. Make sure that participants are now familiar with the concepts of fixed and variable costs and have successfully practiced basic costing exercise. 3. Give participants the following simple example of a woman selling one product alone. Assume that the woman has no other expenses except the 150 Birr house rent she pays. Whether she sells the shoes or not she must pay house rent. She buys the shoe at Birr 70, which is the variable cost. 4. Now ask participants what the woman needs to know to calculate, at what point she will start making a profit. Answer: she must have an idea at what price she is going to sell the product. 5. Continue the discussion by asking participants if the woman plans to sell each product at Birr 100 how is it possible to know her sales. Answer by multiplying the price with the number of units sold. 6. Tell participants that the woman needs to know how many shoes she must sell in order to cover at least the cost of buying the shoe and the house rent. She also knows that from this point up she can also start making profit. 7. Tell participants that to calculate the breakeven point, they can use the following steps. i. Calculate variable costs per unit. ii. Calculate fixed costs per period (in this case per month). iii. Estimate your selling price per unit. iv. Calculate breakeven sales by using the following formula; breakeven point is equal to fixed costs divided by the difference between selling price per unit and variable cost per unit. 8. On the flipchart write the formula and ask one volunteer to come and make the calculation for the above-mentioned example on the flipchart or board. Breakeven point = Fixed costs ÷(Selling price- Variable cost) 5= Birr 150 ÷(Birr 100- Birr 70).
9. Ask another volunteer to come and calculate her breakeven sales. Answer must be at a price of Birr 100 the woman must sell at least 5 shoes for Birr 500 breakeven sales value. She must sell at least 5 units if she is to avoid loss. However if she sells above 5 units she will make profit. 10. Ask participants what will happen if the woman increases the price of shoes from Birr 100 to 120. Let another volunteer come and do the calculations on the flipchart or board. Answer will be her sales will be reduced to 3 shoes and sales will also reduced to Birr 320. Ask the implications of this on the women. Answers can include loosing customers and eventually declining overall sales. 11. Now ask participants to describe the benefits of calculating breakeven point. Elicit answers to include the following. Helps to make pricing decision by helping to take into consideration costs and demand for the product or service. Helps how much you have to sell in order to cover your fixed costs and make a profit.
Practicing breakeven point
1. Ask participants to go back to their own small groups they have formed in the previous session where they worked for the costing exercise. 2. Ask participants to revisit the costing exercise they have done for Wubit Bakery. Tell participants that their task is to calculate the breakeven point using the information in handouts 4.1A, 4.1B and the results of the costing exercise they have Group task done. Also tell participants that they can use the same method or1.stepsmany unitsin bread must be produced(the bakery is neither to make no a profit orThey How used of the example if the woman-selling shoe). a needloss. least 20 minutes for this exercise. at
2. 3. How much the business can afford to change the price of bread compared with the existing market price of bread in town. What will happen if the bakery increases its fixed cost, what is particularly the impact on sales and profit. 119
etc. Encourage participants to give their ideas particularly their concerns and problems. Conclude the session by asking participants’ readiness to apply breakeven analysis in their own business situations. Lead the group to discuss the implications of different decision options (increase price. 120 .) on the business. increase cost. Listen to their concerns and give them your ideas including the importance of the next sessions for reinforcing the benefits of calculating and analyzing breakeven point. Help them to support each other and guide them to follow the right steps. 6. You need to follow how each group is performing the task. After 20 minutes reconvene the larger group and invite the small groups to present the results and show to the rest of the group how they have done it.3. If all groups have done the breakeven calculation correctly let the groups give the results of their discussion on the rest of the tasks given to them. Your support must focus on groups that seem to have lower mutual support and are not in the right track. 4. 5.
The importance of record keeping system. Set up and practiced a simple record keeping system. Session overview: A. B.3A The Record Book Handout 4.3D Debtors' Record Book Handout 4.3C The Record Book (worked out ) Handout 4.3E Creditors’ Record Book Suggested Methodologies: Individual exercise Session Process: A.3B Wubit Bakery Handout 4. Duration: 6 hours Materials: • • • • • Handout 4. Setting up simple record keeping system. 121 .Session 3 Setting up and Maintaining Simple Record Keeping System Objectives: by the end of the session participants will have Described the benefits of keeping records of business transactions. The Importance of record keeping in improving your business management.
Tasks for participants with record keeping experience: What kind of record keeping they have or are there similarities and What were your purposes of record keeping in your businesses? differences with in the group? 122 . To be able to reach informed decisions on important aspects of the business. Make sure that the following are also included in the list. 2. Elicit ideas to include record keeping as a written form of keeping business transactions on how much money the business receives in and pays out or going out of the business. The task for small groups with participants having no record keeping experience will be the same. the small groups with record keeping experience will have the same task. To keep track of what you owe. Further sub-divide the two groups into manageable small groups (comprising of 3-5 participants). 4. To be sure that money belongs to the business. What are your reasons for not keeping records? Did anything happen in your business because of the absence of record Knowing a number of rich and skilled businesspersons without any record keeping? keeping experience. Lead the discussion to develop a list of main reasons for having a record keeping system. 3. do you think it is still necessary to have record keeping for your businesses? 6. 5. Ask participants to give as many reasons as possible for recording and analyzing business transactions. Ask participants' experience in keeping records of their business transactions. To calculate profitable prices. Divide participants in two groups. Introduce session objectives and relate the session with the rest of the session in the Module. To analyze the financial situation of a business. To avoid theft.1. Write all responses as they come on the flipchart paper. To know how much profit/loss you are making. At the same time. Tasks for participants without record keeping experience in their business. To keep track of what you are owed. Start by asking participants what does record keeping mean? Write participants’ answers on the flip chart. namely those practicing record keeping and those without record keeping experience. To conform to tax laws. To know when you will be able to buy new equipment.
First. To set up and maintain a record keeping system. Recall from the participants' presentations that they discussed that each business can have a record keeping system suitable to its needs. external persons. emphasize that in this 123 . volume of business. Unless record keeping improves business management to realize increased business performance and growth. Not realizing the benefits of record keeping. etc. Lead the discussion to make the following points: There are always variations in the types of record keeping needed in every business. allow about ten minutes of general discussion on the presentation of participants without record keeping experience. it is also well known that many small businesses fail or cannot grow due to lack of good record keeping system. However. At the same time. depending on the nature of business. purposes of record keeping. it is not necessary to standardize record keeping system for every business. etc. Therefore. The disadvantages of having an external consultant come if the owner herself does not have record keeping skills. Stress that having record keeping for the sake of record keeping alone makes the costs of record keeping higher than the benefits. the benefits must be higher than the costs for your business. Allow at least ten minutes of general discussion on record keeping experience. Let the small groups without record keeping experience present first. Invite the small groups with record keeping experience to make a five-minute presentation and ask for suggestions from the rest of the participants. allow five minutes for each group to present. 9. Setting up a Simple Record Keeping System 1. it could simply be a waste of resources. Reconvene the larger group and invite the small groups for presentation. Make sure that among the reasons for not keeping records the following are included: Lack of record keeping skills. The costs of record keeping are higher than the benefits. Under such circumstances the business might even loose money because of the possibility of cheating or fraud by B. 8. Absence of simple and appropriate record keeping system. Who is doing your record keeping within your business? Yourself or external consultants? What are the advantages and disadvantages of using external consultants in record keeping? If you use external consultants how can you overcome the disadvantages? What were your benefits and costs of record keeping in your experiences? 7.
4. etc. Who was involved in the transaction. Show enlarged format of a record book on a large flipchart paper. Invite a volunteer to come out and show the contents of a source document. Answers include low cost. Balance the books To control the day-to-day activities of the business. In another pair task. To prepare balance sheet. The following are the objectives: Handout 4. 3. Tell participants that their responses will be based on at least four of the objectives listed above for having a record keeping system. Distribute handout 4. Also ask what will they do in case they could not get a written proof for business transactions. 8. accurate. invoices. To prepare income statement. You can also enlarge 124 . Ask participants to suggest the characteristics of a quality record keeping system.2A.2B for each participant and ask them where it should be registered in the record book. which they can adapt to the specific needs of their own business. neat and less complex or easy-to-work record keeping system. Ask the rest of participants to comment and lead the discussion to agree on the following information. What was the transaction? How much money is involved in the transaction? 5.. 2. that may result in the coming in or going of money from the business. 7. Get participants’ ideas and lead the discussion to agree at least to write the above information on a piece of paper and keep in a file.session they will set up and practice a generic record keeping system. Date of the transaction. To prepare cash flow plan. 9. Let participants suggest what must be the first step for setting up a simple record keeping system? Answers must include having the basic source documents or written proofs for business transactions such as receipts. ask participants to suggest the most basic records small enterprises need to have to set up a simple record keeping system. 6.
Record Book Date Receipt No DESCRIPTION In CASH BANK SALES VARIABLE COST Out Balance In Out Balance Material Energy Labor FIXED COSTS 125 .
Credit sales Birr 150 to Women Cooperative Restaurant (WCR). 1994 Ethiopian Calendar).Handout 4. Cash sales Birr 440. Paid property insurance on check Birr 2500 September 20 Credit sales Birr 150 to WCR. Bought 6 packs of plastic bags at Birr 120 for customers to carry bread (enough for one month sales). The supplies bought were counted and a stock value of Birr 10. Except for this month. no receipt was given. Paid annual trade license fee Birr 180 Cash sales Birr 575 September 19 Cash sales Birr 430.000 was recorded. Your task is to record the transactions in the record book and close the accounts for the first month of the bakery’s operation. 17-Oct. Paid Birr 1000 for signpost installed done a one week ago no receipt was given. The bank statement shows another 7500 Birr. The bakery was not opened as scheduled on September 11. all transactions in the record book are closed every month starting from the first day of the month for 30 days. September 21 Cash sales Birr 600 126 . September 17 She counted her cash on hand and she found Birr 2500. 10 (Meskerm 7-30. Cash sales Birr 400 Bought stationery Birr 150 September 18 Credit sales Birr 150 to WCR.3 B Wubit Bakery Wubit Bakery had the following transactions from Sep.
Cash sales Birr 568 Paid Bank Birr 1875 bank in cash for the first monthly repayment. September 29 Cash sales Birr 560. September 26 Cash sales Birr 560. September 24 Credit sales Birr 150 to WCR. September 27 Credit sales Birr 150 to WCR. September 28 Cash sales Birr 565. Paid two week salary for bakery workers Birr 630 127 . Paid annual municipal license fee Birr 300 September 25 Credit sales Birr 150 to WCR. September 23 Cash sales Birr 655. Deposited Birr 2430 to the bank account from the cash box. September 30 Cash sales Birr 770. Cash sales Birr 540 Deposited bank Birr 1595 Paid Birr 100 for maintenance of equipment. Cash sales Birr 550. Cash sales Birr 490.September 22 Credit sales Birr 150 to WCR. Cash sales Birr 560. October 1 Credit sales Birr 150 to WCR.
Credit sales Birr 150 to WCR. Cash sales Birr 572. Paid Birr 25 in cash for September's water bill.
Credit sales Birr 150 to WCR. Cash sales Birr 575. Paid Birr 682 electric bill for oven and mixer.
Credit sales Birr 150 to WCR. Cash sales Birr 570
Cash sales Birr 730
Credit sales Birr 150 to WCR. Cash sales Birr 590.
Cash sales Birr 744. Paid Birr 70 for September's telephone bill.
Credit sales Birr 150 to WCR. Paid Birr 75 in cash for electric bill other than oven and mixer. Cash sales Birr 600. Paid Birr 750 in cash as salary to sales person, cleaner and guard.
Cash sales Birr 755 Paid house rent on check Birr 1500 Owner salary paid Birr 1500.
Collected Birr 1950 from WCR in cash. Cash sales Birr 605. 128
Paid transport services used for the month Birr 300. Bank informed deduction of Birr 250 for the current account services. Paid 10 days salary for bakery workers Birr 450. Supplies costing Birr 2600 (flour, sugar, oil, yeast and salt) were counted and recorded.
Sept 17 embe 17 17 17 17 18 18 18 19 19 20 20 21 22 22 23 23 24 24 24 25 25 25 25 26 27 27 28 29
01/1 01/2 01/3 01/4 01/5 01/6 01/8 01/10 01/12 01/13 01/14 01/15 01/17 01/18 01/18 01/21 01/22 01/23 01/24 01/25 01/26 01/27 01/28 01/29 01/32 01/34 01/35 01/37 01/39
Cash beginning ofthe month Bought 6 packs of plastic bags Signboard installation on cash Credit sales to WCR Cash sales Bought stationery on cash Credit sales to WCR Paid annual trade license fee Cash sales Cash sales Paid property insurance on Credit sales to WCR check Cash Sales Cash sales Credit sales to WCR Cash sales Cash sales Deposited bank from cash box Credit sales to WCR Cash sales Paid annual municipal license Credit sales to WCR fee Cash sales Deposited cash from cash box Paid maintenance service on to bank Cash sales cash Credit sales to WCR Cash sales Cash sales Cash sales
120 1,00 400 0 150 180 575 430
2500 2380 1380 1780 1630 1450 2025 2455 250
7500 120 1,000 150 400 150 150 180 425 430 5000 150 440 450 150 490 505 7430 150 550 300 150 540 159 5 9025 100 560 150 535 565 560 9025 7500 4350 2500 0
440 600 490 655 243 550 0 300 540 159 100 5
2895 3495 3985 4640 2210 2760 2460 3000 1405 1305 1895 2425 2990 3550 3550
560 560 565 560
guard.Record Book Date Receipt No DESCRIPTION In CASH BANK Out Balanc e 355 In Out Balance BBF 30 1 1 1 1 2 2 2 3 3 3 4 4 5 6 6 7 7 8 8 8 8 9 9 9 10 10 10 10 10 9025 SALE S VARIABLE COST Material Energy Labor FIXED COSTS 01/41 01/42 01/43 01/44 01/45 01/46 01/47 01/48 01/49 01/50 01/51 01/52 01/53 01/54 01/55 01/56 01/57 01/58 01/59 01/61 01/62 01/63 01/64 3 01/65 01/66 01/68 01/69 01/70 01/71 01/72 Cash sales Credit sales to WCR Cash sales Paid bank loan on cash Paid two weeks salary for bakery Credit sales to WCR workers Cash sales Paid water bills for September Credit sales to WCR Cash sales Paid electric bill for the oven and Credit mixer sales to WCR Cash sales Cash sales Credit sales to WCR Cash sales Cash sales Telephone bill for September Credit sales to WCR Cash sales Electric bill other than the oven Salary paid to sales person. Paid house rent on check Owners salary Cash sales Paid 10 days salary to bakery Collected credit sales in cash from workers Transport cost WCR Bank charge 770 568 187 630 5 572 50 575 682 570 730 590 744 70 600 75 750 755 150 150 0 0 450 300 432 0 0 488 301 8 238 3 5 181 176 1 1 233 165 6 4 222 295 4 4 354 428 4 421 8 8 481 474 8 399 3 474 3 324 8 174 8 235 8 190 3 385 3 355 3 3 355 3 7500 770 150 568 630 150 572 4350 50 150 575 682 150 570 730 150 590 744 70 150 600 75 750 755 1500 1500 605 450 300 250 8845 131 605 195 0 250 8775 1547 9 1080 . Cash sales etc.
Kebele. etc. House no-000. .Debtors Record Book (Card) Customer name: Address: Woreda. Note that one card or one page in the book for each customer. Box-. Credit limit: Will start to pay on or will pay on: Date Details Sale Paid Balanc value Amou e nt Signature Fill the form for Women Cooperative Restaurant.0. O.00. P. Tel-.
One card or one page in book for each creditor or supplier.0. Kebele. etc. Tel-. Accounts payable amount: Credit duration: Grace period: Number of installations: Date Details Credit Amou nt Amoun t Paid Balance Signature Creditors Record Book (Card) Session 4 Can be used for credit suppliers. O.00. P. Box-. House no-000. 101 .Creditor name: Address: Woreda.
In order to build on participants’ experience the trainer can ask the following questions: How they estimate sales for a particular period. Write participants responses in the flipchart. credit account. Whether they count their stocks for the preparation of profit and loss Do they use record keeping for preparing profit and loss account. Ask how many of the participants have experience in preparing a profit and loss account for their businesses. Introduce the session by reading the objectives and relating to the previous Ask participants to recall their discussion in Session one on the importance of sessions in the Module. What about cash received for what happened in another period. Elicit answers to include being able to know whether the business is making profit or loss overtime. If yes. 3. Do they use cash credit sales together. what are the records such as record book. week or month. receivables account. the methods for calculating profit and loss could be interesting in their own way. However. Will describe the importance of preparing profit and loss account. Note that some participants might give their estimate rather than from record keeping. for a day. Materials: Handout 4. 102 . Duration: one hour. Some of them might have experience and it is likely that many of them have not. Apart from the cost of materials what other costs are included in the account. keeping records of business transactions.4 layout of a simple profit and loss account Suggested methodologies: Individual exercise Session process: 1. calculation.Preparing Your Profit and Loss Account Objectives: by the end of the session participants Will be able to prepare profit and loss account. How do they calculate the cost of goods sold (materials bought or used). 2. Ask participants with experience to share their methods of calculating profit and loss account.
4A (layout of a simple profit and loss account). etc. Using the record book and based on other participants’ experience. Check that all participants got accurate figure from the record book. 3rd Calculate gross profit Deduct the value of material used in the period from the sales revenue And the result will be gross margin or gross profit. 4. 2nd. 6. Distribute Handout 4. 5th Take the total of other expenses from the gross margin. 5. Materials used in the period Amount in stock at start = Amount + Amount added to stock during the period – in stock at end of the period Note that there must be physical counting of the stock at the end of the period. bank interest. 103 . repair and maintenance. owner’s salary. Make sure that each participant is doing the exercise at equal pace. insurance. All of them must have identical results. Calculate the cost of materials sold Find out the amount of materials used in the period by using the following method. guide all participants to prepare a one week profit and loss account for Wubit Bakery in the period of Meskerm 7-30. Calculate the month’s sales income. 1st. depreciation. 1994. Ask how they used the cashbook. the debtors’ record and creditors’ record books. How do they treat depreciation in the calculation of profit and loss statement. sales women’s salary. tell participants that they will now use the record books (the cashbook. 4th Calculate other costs during the period Add the totals of other expenses such as wages to workers. rent. After a few participants have shared their experience. creditors’ book and debtors’ book) they have prepared in session 1 of this module. Write each step and then put the right figure from the record keeping work. You will now arrive at net profit or loss.
8. let participants go through the record book and prepare profit and loss account for the month of Meskerem 1994. You can now ask participants what kind of analysis they can make from the results of the profit and loss account. For this. Ideas can include: Comparing net profit or loss from period to period. It is important that each participant works individually and you need to assist some participants as they have to go at equal pace with the rest of the group. 10. 104 . Ask participants’ ideas on how they will use the analysis to improve the profitability of their businesses To assess whether the business has improved from time to time. Invite one volunteer to show how she has done the calculations. To make important decisions on the withdrawal. they might need about 20 minutes. Once all the participants have finished the exercise. 9. Elicit ideas and write on the flip chart. To calculate cost and help to set prices. ask if all have arrived at the same figure. investment. etc.7. There might be differences due to slight computing or transferring mistakes. In pairs.
which is likely in most small business situations. If the participant cannot remember she can tell the 105 . For the purpose of understanding how the balance sheet is prepared. 3. Draw a big blank balance sheet form on the flipchart or whiteboard. Introduce the session by presenting the objectives and linking with the rest of the sessions in the module. Analyzed and interpret the balance sheet for improving their businesses. you can initiate discussion by asking participants to give ideas on the meaning of a balance sheet. Start by asking a simple question of how much money they have used and for what purpose they used when they started their own businesses. 4. If no one has experience in preparing and using the balance sheet.Session 5 Calculating the Balance Sheet Objectives: by the end of the session participants will have Prepared a balance sheet for their business using their business records. how she prepares and uses the balance sheet for improving her business. Duration: 1 hour Suggested methodologies: Pair task process: Session (exercise) 1. Ask participants if any one has experience in preparing or using a balance sheet. 2. ask one volunteer participant to tell the rest of the group how she has used her start-up money. If she can remember the exact amount used write on the flipchart. On one side write uses of money and get participants’ responses in their personal business experience. In case you find someone ask her what the balance sheet means for her.
If the participant has done it correctly. Figures such as for the first month her net profit was Birr 100. write sources of money and ask her to remember from where she got the start-up money in other words her sources. Since the above information shows at the start of the business changes have definitely happened one month after starting the business. raw materials. 9. On the flipchart write the figures she will tell you on the sources of money side of the balance sheet.estimate. Ask participants to identify the difference between profit and loss account and the balance sheet. Now ask participants what changes they can expect in the sources and uses of money exactly one month after the business has started. whereas the balance sheet is an overview of the business's sources and uses of money at a particular point in time. etc. The answer definitely will be they must be equal. Relate the exercise with the record keeping. In a pair task. Let the participant herself draw the blank balance sheet and write the changes made on the appropriate items on each side. thank her for the participation. let participants complete one side of the balance sheet by listing the items needed and the sources of information on the uses of the business money. 7. her raw materials were valued at Birr 20 and a relative has given her equipment with an estimated price of Birr 500. Hence. On the other side of the flipchart. 8. As this will be difficult to remember. 5. 10. she can instead give imaginative figures. Ask participants from what they have seen on the flipchart whether the sources and uses of start-up capital must be balanced or not. Invite a volunteer to come out and fill the changes happened on both sides of the balance sheet (the sources and uses of money). one month. etc. profit and loss account and costing part. List of items where the total business money is used 106 . Answer must be the profit and loss account shows profit or loss of the business for a certain period of time such as one week. Tell participants that the name balance sheet is given because the figures on the sources and uses of money must balance. Answers will be such as money used for buying equipment. 6. one month after starting the business what changes do they imagine in the above starting sources and uses of business money.
107 . List of items where the money comes from Items Source of information from Own savings Money owed to suppliers Money owed to banks Profit or loss Donation Creditors record Creditors record Profit and loss account 12. Emphasize that a clean and accurate record keeping is vital to prepare a balance sheet that can accurately tell the state of the business at any point in time. Preparing a balance sheet 1. Tell participants to continue completing the remaining side of the balance sheet. profit and loss account sessions.4B (The Fresh Bakery Case).Items Cash Money in the bank Receivables Stocks Equipment. Pair task: let all participants prepare a balance sheet for Fresh Bakery. The basic information is also found in the record keeping. Tell participants that they are going to practice preparing a balance sheet by using record books they have developed in this module. Give them about 20 minutes. The pairs are expected to use all financial records they used in the Module. As it is rare for small business operators to prepare and use a balance sheet it is important for you to stress that balance sheet can be simplified and easily applicable to their business situations. the sources of money for the above mentioned uses. Source information of Cash book Cash book Credit customers record Stocktaking record Equipment record 11. costing. Distribute Handout 4.
5. let them tell their results and how they have done it. Ask participants how they are going to use the balance sheet to improve their business. stagnant or declining. ask one of the pairs to present their results and to explain how they have prepared it and its interpretations. summarize and end the session by thanking their contributions. Elicit participants’ ideas and write on the flipchart. Prepare balance sheet for Fresh Bakery using the financial records you have developed in the module. Compare the balance sheet at the start of the business with the new one you prepared. If random responses prove to be correct. It is important that other participants explain and make sure that all participants are progressing at a similar pace. After all pairs have completed the task. 4. without dominating the other partner. In case some pairs did not get it right. What is a balance sheet? What information the balance sheet contains? What does it tell? 108 . 3. You must make sure that each pair works effectively. Observe the pairs and assist if some pairs are not performing at similar pace. Ask if all pairs got the same result. Give interpretation of the results and suggest recommendations. Check learning points of the session by asking participants the following questions. The following points can be included: How the money is used in the business and how to use it better. It can tell whether the business is growing.2.
Module Business Planning WED TRAINING MANUAL 110 .
Planning is very important to show: • • • If the business can make a profit. It makes it possible for things to occur that would not otherwise happen.Module 5 BUSINESS PLANNING OVERVIEW Planning is a decision-making process involving the selection of courses of action that an enterprise and its departments will follow. The module has the following sessions. Accordingly. Cash Flow Plan / Forecast. it helps entrepreneurs to describe the steps followed to prepare business planning. Each module is used to improve the marketing. Now the trainees can put together the different modules to prepare a business plan. Making a Sales and Cost Plan 4. What money is expected to come into and go out of the business? Therefore. To know how well the business is expected to do in the future. when to do it and who is to do it. Planning is deciding in advance what to do. 111 . This module lasts about 6 hours or a day: 1. how to do it. planning bridges the gap between where one is and where one would like to be in the future. Moreover. Therefore. basic management and financial management skills of the trainees. Goal Setting 3. The overall objective of the module is to enable participants to explain the very principles of business planning and its importance. business planning training program is essential to up-grade skills in this subject. In addition. SWOT Analysis 2. the business-planning module will help to assemble all previous modules to build up the business plan. training participants will be able to make a realistic and achievable business plan by setting a SMART goal.
What is the difference between strength and an opportunity? Expected Responses Strength is within (internal) the business and opportunity is outside (external to) the business. the participants will able to: a) b) Explain what a SWOT Analysis is? Analyze the strength. Explain that the objective of this session is to become familiar with another tool with which a business idea can be assessed and evaluated. weakness. opportunities and threats related to the success of their businesses.MODULE 5 SESSION 1 CONDUCTING SWOT ANALYSIS OBJECTIVES: At the end of the session. WHAT IS SWOT ANALYSIS? Ask if anyone knows for what SWOT stands? (SWOT –strengths. weaknesses. opportunities and threats). TIME 1 Hour Session Guide INTRODUCTION Introduce the session and explain objectives. TRAINING MATERIALS: Flip Chart and Marker OHP and Transparency Handout SWOT Analysis Model Blank SWOT matrix. 112 .
• • • The instructor describes that SWOT analysis will enable them to evaluate their business idea and decide: if they are going to continue with this business idea and make a full business plan. good relationship with customers. and Threat is outside to the business. etc). what are some of the positive aspects of your business? Write down the answers on the left-hand side of the page. Tell participants that now they will look at a model. good quality product. which has the above four components. if they are going to make changes to the business idea. b) Ask participants what are some negative characteristics? Write these on the right side of the page. using the same throughout the whole demonstration. Explain to participants: Each business has some positive and some negative characteristics. which we can control. Some of these are directly under your control and some are not. Tell participants that SWOT analysis is a technique most business use to understand their position and to start to develop a strategy. Ask participants: Let’s start with the positive. a) Draw a line down to the middle of the flip chart.- Weakness is within the business. which we are directly responsible for. Use a participant’s business as an example. c) Explain to participants: Here we have some positive and negative characteristics. These are positive aspects of our business. large variety of products. Mark the responses on the list with “S” (for Strength) Explain to participants? The items just marked with ‘S’ are what we call strengths. Ask participants. many customers. Opportunities are aspects of the external environment which affect our business positively (These might include more 113 . CREATE THE SWOT MATRIX The instructor creates a SWOT matrix on a flip chart (See Handout 2). if they are going to give up this business idea completely. Can you see some items here for which you are directly responsible? (for example.
etc). Explain how to put each item into the appropriate box. ask participants to give a few 114 . poor quality products. At the top of the page. in consumer tastes. untrained workers. d. we have all negative aspects: weaknesses and threats. On the left-hand side of the box. which of these are under your control? Make the responses with a “W” for weakness. etc. if we want to. which fall under our control. poor infrastructure. we have internal factors controlled by strengths. we have all external factors out of our control opportunities and threats. Show transparency and distribute handout 1.available income. On the right hand side of the box. participants will complete the SWOT Analysis for their own business. (Blank SWOT Matrix) working in pairs using the They should spend 30 minutes per participant on these interview technique.Ask participants we will now look at the negative aspects. These might include poor marketing. more goods consumption. consumer demanding more variety. which negatively affect our business. The rest of the negative items are called ‘threats’. no market research. difficult access to markets. change strengths and opportunities. At the bottom of the page. This means that we have the power to change them. we can not make them happen. Explain to participants: These are called weaknesses’: They are the negative aspects of our business. e. etc…) since they are external to our business we can not control them. weaknesses and us. they are aspects of the external environment. PRACTICE WITH SWOT ANALYSIS Distribute Handout 2. exercises. When they have finished. but we can increases our success by being aware of them and developing strengths to take advantages of them. we have all the positive aspects: (These might include seasonal raw materials.
how can we address that? solutions? Opportunities ask. Write them on a flip chart with a blank SWOT matrix on it. Discuss these using the following format. which are mentioned by several participants. how can we take advantage of these? How will these opportunities help us? Threats ask. Strengths ask. Make note of any examples. how can they hurt us? How can we avoid them? What are some possible CONCLUSION Ask participants: why is it important to do this sort of analysis? session helped you? Have you understood new aspects of your business? How has this 115 .examples of each aspect.. how can we build on these? How can the strengths help us? Weakness asks.
Who will be responsible for these tasks? Who will do what. Monitor and evaluate activities. Carry out the plan. 9. What is Our Goal? 116 . Which way do we all accept? Is it possible? Do we have the resource we need? 2. Bond – Stuart et. When will we evaluate our progress? 5. 7. Part 3 1988).1A Planning (Source: K. 8. What are the different ways to reach our goal? What are the advantages and disadvantages of each way? 1.HANDOUT 5 . Planning: A Good Planning Process should follow these steps. al: Building Wealth in Our Villages. when and where? 4. Write up the results of the discussions in a business plan? 6. What talks must we do to move towards? Our goal in this way? 3.
This relative tells Azeb that she is engaged in hairdressing and makes money in this way. they can only buy one drier (cask).HANDOUT 5 . hair rolling materials and curling machine. conditioner. they realize that they did not buy. In the next few weeks only one or two women come to the hair saloon per day. they find the price of the equipment too expensive. She returns to her town and calls her friend and tells her about her visit and says that she wants to do the same. shampoo. Her friend Zeritu agrees and lends to her Birr 1. Azeb hires somebody to do the job. When they get back home. After some time. weakness. What went wrong in W/Ro Azeb business? List her business strength.1B SHORT STORY W/ro Azeb goes to another town to visit her sister-in-law. When they arrive in the market. two chairs. The next day. After three days the hairdressing saloon starts operations. Azeb and Zeritu go to market to buy hairdressing equipment and furniture. Azeb and her family decide to sell the equipment and furniture and agree to think some other businesse in the future. everybody has a permanent place to go because there are three hairdressing houses in the village. opportunity and threat? 117 . while the women go to buy the materials from the expensive nearby shop.000. washing bowl and two big mirrors. W/ro Azeb’s daughter is assigned to clean the hairdressing saloon.
The entrepreneur should look at the current external environment as well as anticipate possible changes in the external environment. 118 .1C SWOT ANALYSIS MODEL ADVANTAGE S Within the control of the entrepreneur • Strengths Weaknesses DISADVANTAG ES Within the control of the entrepreneur Organizational & Management Factors • • • Marketing Factors Technical Factors Financial Factors INTERNAL ENVIRONMENT (use as assets) EXTERNAL ENVIRONMENT • • • • • Beyond control of entrepreneur (take advantage of) (overcome) Political Environment Economic Environment Social and Cultural Environment Technical Environment Population Environment (exclude) INTERNAL ENVIRONEMENT EXTERNAL ENVIRONMENT Beyond control of entrepreneur Opportunities ADVANTAGES Threats DISADVANTAGES Strengths and Weaknesses relate to internal controllable environment. while opportunities and threats relate to external environment beyond individual control.HANDOUT 5 .
HANDOUT 5 .1D BLANK SWOT MATRIX ADVANTAGES DISADVANTAGES Strengths Weakness INTERNAL ENVIRONMENT INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT OPPORTUNITIES THREATS ADVANTAGES DISADVANTAGES 119 .
Include the idea of dreams. participants should be able to: Use a technique for setting goals. This overall training objective of developing your skill in business management is related to goals: How you manage.Module 5 Session 2 GOAL SETTING OBJECTIVES: At the end of the session. paper and markers HANDOUTS Condition for effective formulation of goals Business planning for the small business How to set goals for your business Business Plan – From present to future situation Session Guide INTRODUCTION Introduce the session and explain objectives. Tell participants: In this session. screen and color pens Flip Chart board. WHAT DO WE MEAN BY ‘GOALS’ Ask participants: What do we mean by ’goals’? Have you ever set goals for your future? Small or big goals? Gather participants' responses and write them on a flip chart. and how you make the decisions. we will look at a technique for setting goals for your business. and Identify specific goals for their own business. TRAINING MATERIALS: Overhead projector. depends on what it is you want to achieve. 120 .
Remember definition of an entrepreneur: ‘someone committed to the achievement of goals’. this (draw future box) where would like to be in the future – the second box is our goal (complete the diagram as on a flip chart. In order to be useful to you. Goals help to motivate us and point us in the right direction.without goals. If this (draw a box on a flip chart) is where we are today. your goals must be specific. WHY ARE GOALS IMPORTANT? Ask participants: Why do you think it is important to have specific goals for your business? Using transparency or flip chart of handout 2. Successful business always has specific goals. we cannot plan for the future of our business. from present to future situation) Summarize the Discussion A goal is a situation that you want to experience in the future. realistic and bounded by time (Time Bound ) (SMART) S PESIFIC M EASURABLE A R T CHIEVABLE EALISTIC IME BOUND The instructor gives example of a SMART goal. Tell participants: we set goals all the time. A TECHNIQUE FOR SETTING GOALS 121 . measurable. achievable.Expected Responses Target Expected results of a plan Where we would like to be in the future. Explain: Goals are the foundation of business planning .
Write down the answers on a flip chart as in Handout 3. Ask one group to act as observers and give those in the other group the signal to accomplish the goal within the time frame of two minutes.you will demonstrate this goal setting technique by role-playing. Try to point a vivid picture of her future situation. bring it to life with her own words. and tries to accomplish it in the given time Task • • • • • • • Distribute a half page paper to each participant. Ask the volunteer questions on personal goals: a pretty dress. Goal setting starts with imagining a desired situation in the future. would like to happen. After all the participants performed their mini goal. This technique is based on a series of questions they should answer regarding the situation they want to experience in the future. which has been used by many entrepreneurs’ trainers – to help them in setting goals.) Divide the group into two. Ask each of them to read out her goal and attach the paper on the soft board or on a flip chart board. Ask for a volunteer to take part in role-playing. summarize her answers. Ask the participants to write their name on the upper left side of the paper they received. you need to be more systematic – show flip chart of Handout 3. Condition for effective formulation of goals. This is actually something we do naturally. have a look at one and check with the observers if they are " SMART" and if they are accomplished or not. Encourage her to be as specific and descriptive as possible. 122 . Ask them to think for five minutes and write down a mini goal they think they can achieve in two minutes inside the classroom. PRACTICE WITH GOAL SETTING Ask each participant to set a goal that she thinks can be achieved in two minutes in the classroom. Role Playing – Setting Goals Tell the participants . we are always dreaming of what we In order to make this an effective part of their business plan. (At the same time the facilitators think and prepare some obstacles. When she has answered all questions.Instructor explains to participants: the technique. a visit to America. a very good car. Repeat the process changing the roles of each group.
Key questions from the task Instructor asks participants how they feel with the results and what they consider in setting their mini goal Expected responses • • • • • • Difficulties in setting goals. The first question is “where do I want to go?” The next question is ‘How do I get there” 123 . technological. Highlight attitudes of creativity. and persistence among participants. information seeking. etc) The need to operate with goals of different time frame. Summarize main points. risk taking. later we will develop the skills and identify the steps (business plans and action plans) necessary to achieve them. which will help them achieve their goals. Draw steps on the flip chart. Tell participants: Now we are just identifying goals. Ask Participants: How has this helped you to plan for the future? What do you think the next step is? Encourage participants to reflect on their existing strengths. (This exercise is taken from CEFE training package) CONCLUSION Show Transparency 5 –2C. Conflict among goals Lack of competencies or skills Being afraid of failures or of taking risks Environmental obstacles (Social. and identify others that they want to build. legal. cultural.
Distribute Handouts. 124 .
To be effective. It basically identifies the priorities and constraints in a business. opportunities and threats is a widely used approach for assessing the conditions impacting a company. the plan can help it get there. The action plans need to be monitored regularly. Then objectives are identified . of strengths. Business planning helps guide our daily business activities.Stop Press 1996. Business Goals Family Goals Harmony and Balance 125 . A plan is about determining where we are today and where we want to be in the future and developing strategies to get there. It usually starts with a review of the environment looking at all the things that can impact on the business project. It is time consuming and it means we have to stop running the business for a while to think about where we are going.what is it we want to achieve? Then we develop the strategies of "how" we intend to get there.SETTING GOALS BUSINESS PLANNING FOR SMALL BUSINESSES Often planning in small businesses seems unnecessary. weaknesses. When the organization knows where its wants to go. These objectives and strategies need to be supported by action plans to be implemented. Yet lack of planning is a key reason for business failure and is very common in small businesses. The Pacific Island Business Development Trust . The SWOT analysis. the planning process should result in a written plan. not just because it gives you something to refer to constantly but because the writing process forces us to thing through our goals and objectives more carefully.HANDOUT 5 – 1A SESSION .
FLIPCHART HANDOUT 5– 2B SESSION .SETTING GOALS FROM PRESENT TO FUTURE SITUATION FROM PRESENT TO FUTURE SITUATION Steps PRESENT SITUATION Future Situation 126 .
HANDOUT 5– 2C (Transparency) BUSINESS PLAN TODAY What do we do? What is our business? Who for? Who are our customers? How do we do it? What makes it different? How sustainable is it? FUTURE What do we want to do? Business Plan Who do we want to do it for? How will we do it? Strategies and Action Plan 127 .
HANDOUT5 – 2D CONDITIONS FOR EFFECTIVE FORMULATION OF GOALS It must be positive and specific. Does this goal fit in with all aspects of my life (social life.... What do I want? What do I want to see. hear and feel specifically? It must be measurable: specific indicators How will I know that I have reached my goal? When will I have reached it? It must be important and motivating for you. What makes this goal important to me? It must take into account the other people in your life. family.)? It must be under your control: What can you do to achieve it? What can I do to achieve this goal? What action can I take? 128 .
as you want it to be in this future time frame: Your product: What different products would you like to produce and sell? What will they look like.HANDOUT 5– 2E HOW TO SET GOALS FOR YOUR BUSINESS Think about what you want to achieve in two years' time: in two years from now. and what jobs would they be doing? Your Responsibility: What would you like your job to be? 129 . how do you want your business to be? Think about all aspects of your business. workshop) to look. smell. how does your product compete? The area: in which regions do you want to sell your product? Your revenue: how much money do you hope to make at that time? Your equipment: What equipment would you like to use? Your infrastructure: How would you like your premises (shop. taste. how would you like the layout to be? Your staff: how many workers would you like to have. etc? Who would you like to sell to? Your Market: who will your customers be for each product in two years’ time? How much will they be they buying? The Competition: Who do you think they will be.
Effective goal setting is something we do naturally.HANDOUT 5 . It must take into account the other people in your life. Definition: A goal is a situation that you want to experience in the future.2F GOALS An entrepreneur is someone committed to the achievement of goals. It must be important and motivating for you. There are conditions for the effective formulation of a goal: It must be positive and specific It must be measurable: specific indicators. Goal setting is a technique we can use to help our business grow and develop. It must be under your control: what can you do to achieve it? 130 . Goals are necessary in order to move in the right direction. Goal setting starts with imagining a desired situation in the future.
Ask participants: What is business planning? What is forecasting? and Is planning necessary? 131 . To make a sales and costs plan for their business. (OHP) Handout: • • • Business planning When to make a sales and costs plan The four steps of forecasting: SESSION GUIDE INTRODUCTION • • Explain session's objectives Introduce the topic by outlining its content and purpose. transparency. the Participants will be able: • • To explain the importance and principles of business planning.MODULE 5 SESSION 3 MAKING A SALES AND COST PLAN OBJECTIVES: By the end of this session. TRAINING MATERIALS: • • Flip chart and marker pens Overhead projector.
IMPORTANCE OF BUSINESS PLANNING Form three groups and ask each group to list (identify) the importance of business planning. The plan indicates the amount of money and its source expected to come into and go out of the business. Indicates the part of the business which can be improved.EXPECTED RESPONSES Business planning is: • • • To decide now for the future Thinking about what to do in the future A path for future activity.. EXPECTED RESPONSES • • • • The plan shows. After each group presents the assignment.etc. summarize the answers on one flip chart and put it on the wall. The sales and cost plan show that the business can expect to make profit that is high enough to allow something to go wrong. • Sales and cost plan shows the sales. 132 . SALES AND COST PLAN Explain step-by-step when and how to make a sales and cost plan. costs and profit which the business is likely to have in the future.. Forecasting is: • • What is expected to happen in the future To know what is likely to happen in the future. For example: ∗ ∗ The sales may be lower than expected A machine break down. if the business can be expected to make profit in the future. The plan shows the bank how well the business is expected to do in the future. • Ask participants to describe types of costs to forecast and steps to make sales and costs plan. The groups are given 10 minutes to discuss and present the group work.
133 . STEP BY STEP EXPLANATION Explain. etc. INDIVIDUAL EXERCISE • • • Ask participants to work out the exercise in Handout 3. Encourage discussion and facilitate getting the right answers. Four steps to make sales and costs plan (See Handout 2).EXPECTED RESPONSES Types of costs to forecast: • A forecast of indirect costs • A forecast of sales • A forecast of total direct material costs • A forecast of total direct labor costs. step-by-step with the help of prepared transparencies • • • How to forecast direct material costs How to forecast direct labor costs How forecast sales. Look at the exercises worked out by each participant and ask volunteers to explain how they have worked out the exercise. CONCLUSION Summarize the learning points of the session by using a flipchart.
3A WHEN TO MAKE A SALES AND COSTS PLAN Make a Sales and Costs Plan to meet the needs of your business. It is often a good idea to plan one year ahead for your business. Framework to fill in Sales and Costs Plan. Many businesses make Sales and Costs Plan every year. If costs and prices for your products change often. SALES AND COSTS PLAN DETAILS Sales Direct Material Costs Direct Labour Costs Gross Profit Indirect Costs Net Profit JAN FE B MAR APR MAY JUNE JULY AUG SEP T OCT NOV DEC 20-TOTAL . • • • • A forecast of indirect costs A forecast of sales A forecast of total direct material costs A forecast of total direct labor costs.Handout 5 . you may need to make Sales and Costs plan every six months. Don't wait until the old plan is outdated before you make your next plan. Make your Sales and Costs Plan before you need to use it.
Forecast indirect costs for each month of next year Forecast direct material costs per item Forecast direct labor costs per item Forecast sales for each month of next year Calculate total direct material costs for each month of next year. 2. FORECAST INDIRECT COSTS Business has many different kinds of indirect costs. 135 . make a forecast for each different indirect cost. Make sure that you include all the indirect costs for your business. It takes some time to work it out but it is necessary to do. 7. For your Sales and Costs Plan. 3.Handout 5 . Complete your Sales and Costs Plan. 6. 4. Here are some examples: • • • • • Rent Transport Stationery Electricity and water Indirect labor • • • • Licenses Insurance Maintenance of equipment Depreciation. Calculate total direct labor costs for each month of next year. 5.3B STEPS TO PLAN SALES AND COSTS To make a Sales and Costs Plan for your business: 1. Make a list of the different kinds of indirect costs you have in your business. 1.
Step 2 Analyze the past Think carefully about each indirect cost your business had last year. Work out ways to improve. Were there ways you could have reduced those costs? Look at each indirect cost and try to learn from the past. For example. Step 3 Get information about next year Think of anything that will affect your indirect costs in the future. invoices and receipts. Make a month-by-month plan and put in the amounts that you have worked 136 . Get information about any changes in your indirect costs next year. your vouchers. You can get this information from your business records. out for next year. Step 4 Make the forecast for next year Use the information that you get from Steps 1.Handout 5 . there is information about last year in your Record Book. 2 and 3.3C The Process of Forecasting: Step 1 Get information about last year To make a plan you need information about what happened in the past.
600 respectively. It will increase electricity bill by Birr 25 and water bill by Birr 7 per month next year. FORECAST OF INDIRECT COSTS JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DE C TOTAL DETAILS Rent Electricity Water Stationary 2. 250. Rent last year was Birr 300 per month. two guard each. 200. Make a forecast of their indirect costs for next year on the blank form below. What is the forecast of total indirect costs for Beauty Hair Salon next year? _________________________________________________________________________________________ _________________________________________________________________________________________ __________________ 137 . Wubit bakery will put in another baking stove. dough maker.Handout 5 . Electricity charges will go up by Birr 75 in May next year. Forecasted bread sales for next year will be Birr 5. Rent will go up by Birr 50 in April next year. 120. Stationery costs will be the same next year. 1. cleaner. Water last year was Birr 18 per month. manager last year was Birr 500.3D EXERCISE Here are records and information for Wubit Bakery.000 per month. Electricity last year was Birr 300 per month. Stationery last year was Birr 50 per month. In January. Salary of baker.
45 0 138 .Handout 5 . FORECAST OF INDIRECT COSTS JAN FEB MAR APR MAY JUNE JULY AUG SEP T OCT NOV DEC TOTA L DETAILS Rent Electricity Water Stationery 30 0 32 5 25 50 30 0 32 5 25 50 300 325 25 50 350 325 25 50 350 400 25 50 350 400 25 50 Total 350 400 25 50 350 400 25 50 350 400 25 50 350 400 25 50 350 400 25 50 350 400 25 50 405 0 450 0 300 600 9.3D Answer to the exercise 1.
Explain: In the previous finance sessions we have been looking at how to record and analyze financial transactions in the past. In this session. Relate this session to the overall training objective of 139 . developing your business. will happen in the future. we will look at recording and analyzing financial transactions.Module 5 Session 4 Preparing Cash Flow Forecast OBJECTIVES: By the end of the session. Blank Cash flow for business Case Study: Cash Flow Forecast 1 Case Study: Cash Flow Forecast 2 Flipchart and markers OHP and transparencies Session Guide INTRODUCTION Introduce session and explain objectives. participants will be able to: Prepare a cash flow forecast for their own business. which we think. TRAINING MATERIALS: Handouts: Blank Family Budget.
purchase new equipment. cash flow forecasts are a useful way of understanding how much money the business will need to operate in the future. Enough money must be saved every month to pay for these items. etc) every month for a given period of time. The instructor summarizes that the only way to know is to do a cash flow forecast. loan repayments. and remaining cash can be saved. A family’s monthly earnings must cover their expenses. The bank usually requires a cash flow forecast if you want a loan. or 140 . etc) and how much will be going out of a business (expenses. WHY IS CASH FLOW FORECAST IMPORTANT? Ask participants: Have you ever thought about what will happen in your business in the future? Have you ever planned your business? What different factors did you consider? Elicit ideas and write them on flip chart. etc). payments of sales. It is necessary to analyze how to finance any plans for expansion (increase production. managing the finance of small business is like handling the household budget. This is a very important part of the business plan because it shows whether the plans are financially feasible. Explain that a cash flow forecast is the estimate of how much money will be coming into a business (from loans.What is Cash Flow Ask participants what cash flow forecast is? How they know how much cash they need to run and/or expand their business? Expected Responses Cash flow forecast is recording future financial transactions of a business We know how much cash we need to run or expand our business: • • • By forecasting By searching previous experience By gathering information concerning my future expense. In simple terms. diversify.
just as in a family. Just as parents save for children’s education to ensure a good future. in a list along the left-hand side. After we have paid all the expenses. etc. Explain: In a business you have money coming in and money going out. Items might include food. HOW DO YOU DO A CASH FLOW FORECAST? Explain: The cash flow forecast only reflects the actual cash coming in and going out of the business: we do not record credit sales or purchases until they are actually paid for. examples of expenses? Elicit ideas and write them on a flipchart. No cash flow forecast can be 100% correct. Ask participants: How much a typical family earns? Write this next to “Income” at the top of the page. by comparing actual amounts with projected figures. medicines. The income is the money coming from sales. On a monthly basis. household utensils. Ask participants: think about your family budget. or health matters. the manager can have a better picture of the future. However. …etc) or education. leaving some space at the top. a manager must save to reinvest in the business to ensure growth. (See Handout 5 .4A). rent. utilities. and the expenses are similar to your variable and fixed costs. what are 141 . transportation. because you are guessing what will happen in the future. how much do we have left? Write this next to “balance” at the bottom of the page. oven. we do not include depreciation. Ask participants: How much would a family spend on each item of food every month? Write down the numbers next to the items.invested in new items (clothes. Calculate the total.
142 . Ask Participants: How do we know how much cash receipts from sales are going to be in the future? Explain: we need to guess what our future monthly sales are going to be. raw materials. new equipment.4C Case Study: cash flow. go through the case study together. Ask participants: what is the cash expenditure for your business? Refer to the expenses transactions table. etc) (EQUALS =) Closing balance (If this is negative) Project the amount of extra cash necessary to ensure positive cash balance every month. etc) (MINUS -) Estimate all cash payments (Cash out) (raw materials. this should include equipment. distribute Handout 5 .4B to fill out as you explain where each item is recorded. tax.4B the blank cash flow table. you need to: Start with beginning balance (PLUS +) Estimate all cash receipt (cash in from loans. Elicit ideas and write them under expenses. sales. THE SUPER DRIED BEEF – CASE STUDY Distribute Handout 5 . SPECIFIC ITEMS NEEDED TO BE INCLUDED IN THE CASH FLOW Ask participants: what are the sources of cash for the business? Elicit ideas and write them under cash receipts. and sales. utilities. Ask the participants to work in pairs. the average delay in payment for credit sales. DEMONSTRATE WITH AN EXAMPLE. our production capacity. other loans. loan repayments. interest.4C The Case Study and Handout 5. these should include owner’s investment. bank loan. when the demonstration is finished. based on a number of factors – demand for our product in previous months. expenses. loan repayment. tax. seasonal fluctuations. market research. wages. packaging. Read out each item and ask the group where they think it should go. We need to consider when we are planning to pay for these items if we have bought them on credit. Use a flip chart or transparency of Handout 5 . etc.Prepare a flipchart and explain: for each month.
PRACTICE WITH CASH FLOW FORECAST Have participants complete a cash flow forecast for their own business for 6 months. Before they start. Discuss: has this analysis changed your plans? Are your plans financially feasible? Is there anything you can do to make them more realistic? Explain: you can increase accuracy of future cash flow forecasts by using a more complex table which allows you to compare forecast and actual figures. diversification of products. They should practice estimating the figures. Brainstorm some of the factors contributing to this fluctuation and how to plan for it. 143 . ask participants to think of their plans for expansion (increased production capacity. Conclusion: Ask participants why it is important to do a cash flow forecast and summarize learning points of the session by using a transparency. distribute another blank table. etc). discuss how to estimate future fluctuations in demand. Once they have finished their cash flow tables. ask them to consider how this analysis helps them. using the information from the previous sessions. expanding to new markets. Why is it important to do a cash flow? What can we do to make it more accurate? Have the participants do a cash flow forecast for 12 months using Handout 6. Handout 2. using Handout 5 4B. When they have completed their cash flow tables. Have them revise their cash flow tables to incorporate their plans.
4A FAMILY BUDGET Months A) Opening Balance B) Cash in: Salary C) Total Cash in C=A+B D) Cash out Expenses • Rent • Food • Utilities • Etc. D = Total Cash out E) Balance E=C-D 1 2 3 4 5 6 A E1 E2 E3 E4 E5 E1 E2 E3 E4 E5 E6 144 .Handout 5 .
Handout 5 - 4B
CASH FLOW FOR BUSINESS
Months A) Opening Balance B) Cash in: Balance (A) Cash receipt (B) 1 2 3 4 5 6
C) Total Cash in C=A+B D) Cash out Expenses (D)
D) Total Cash out (D) E) Balance E=C-D
Note: The opening balance for each month is the same as the closing balance of the previous balance.
HANDOUT 5 - 4C
FRESH BREAD CASE STUDY CASHFLOW FORECAST
Almaz starts her business in September; she invests 20,000 Birr of her own cash and borrows 5,000 Birr from her sister. She estimates that her monthly sales will be Birr 40,000 starting in the first month, and that she will pay within the same month.
Cash out In September she buys one baking stove (machine) which costs Birr 15,000, she pays Birr 7,000 and must pay the rest Birr 8,000 in installments every month for four months. Regular monthly expenses are: • • • • • • • • Stock: Owner salary Dough and bread maker alary Electricity bill: Water bill Tax: Transportation: Miscellaneous expenses Birr 600 Birr 1,200 Birr 25 Birr 150 Birr 200 Birr 150 Birr 15,000 Birr 1,000
Complete the table and calculate the closing balance for each month. Analysis Her sister wants to be repaid, when can she start to repay her? How much can she repay each month and for how long?
HANDOUT 5 – 4D
FRESH BREAD – CASE STUDY
Complete the following tables: cashbook, sales, expenses, accounts receivable and accounts payable. She makes on average 200-kg wheat flour for a day; she sells it for Birr 700/kg. MONDAY She counts her cash and her stock in the morning. She has an opening balance of Birr 300/kg./raw materials 100 pieces of packaging). Her opening stock is 3,000 Birr. She buys 400 kg wheat flour from Petram Company for Birr 1,600 on credit. She buys Birr 300 worth of yeast from Shoa supermarket in cash.
TUESDAY She buys 200 kg wheat flour from Petram Company for Birr 800 on credit. W/ro Alemitu’s Café buys 25 kg.bread for (25 kg x Birr 7/kg) 350 Birr on credit.
WEDNESDAY She buys 200 kg wheat flour from Petram Company for Birr 800 on credit. She buys 24 Birr worth of packaging from Ato Kebede, in cash. W/rt Almaz's retail shop buys 40 kg bread for (40 kg x Birr 7/kg) Birr 280 in cash. Ato Alemu shop buys 100kg bread for (100kg x 7Birr/kg) Birr 700
THURSDAY She buys 100 kg wheat floor from Petram for 400 Birr in cash. She buys 450 Birr worth of sugar and 100 Birr worth of Salt from Star Business Group.
She pays herself a salary of Birr 500 and for her two employees 270 Birr each (540 Birr). W/ro Alemitu pays her balance of Birr 560 in cash. W/ro Almaz’s Retail Shop buys (25 kg Bread (25 kg x 7 = 175 Birr) in cash She goes to the market and sells 50 kg bread ( 50 kg x 7 = Birr 350) in cash. How much cash should she has in the business? ___________________ 148 . She pays monthly electricity bill worth Birr 1.000 in cash. W/ro Alemitu’s Café buys 30 kg bread (30 kg x 7/kg) Birr 210 on credit. Almaz pays her balance of Birr 175 in cash. SATURDAY She buys 100 kg wheat flour from Petram Company in cash for 400 Birr and pays Petram her balance for the week (1. She buy’s 150 Birr worth of detergents and cleaning equipment from W/ro Konjit Shop in cash. Street Children feeding center buys 200 kg bread by birr 1440 She pays house rent Birr 500 Question 1. Universal College buys 250kg bread for Birr 1750 FRIDAY She buys 200 kg Wheat flour from Petram Company for 800 Birr on credit.000 kg x 4 = Birr 4.000) W/rt Chaltu’s Pub buys 40 kg bread x 7 Birr = 280 Birr on credit.
How much is her account Receivable? ___________________________ 3.2. How much is her account Payable? _____________________________ 149 .
BUSINESS PLAN WORK BOOK Name Address Name of Business Date 150 .
5.Name and address of owner and her present occupation. profit last year. number of employees. Summary of owner's educational qualification.THE ENTREPRENEUR AND HER BSINESS 1. including those aspects which are relevant to the proposed business. 4. What will each owner do in the business? (if more than one owner) 6. Summary of owner’s previous employment or self-employment. location. Brief statement of why owner is particularly qualified to run this business. 3. 2. products. sales. 151 . Brief description of present operations of the business.
The most important achievement of the business so far. 9. 8.. The most important challenges now facing the business. Name and description of other business owned by the owner. technological.7. What are some potential opportunities ( socio -economic. 11.) for the business. Brief description of what the owner has already done towards starting the business. It is proposed that the business should be expanded and changed during the next 2 years as follows: 152 . etc.. 10.
distributors: name. consumption patterns. etc. location. where do they live / work / shop. etc. 3.MARKET 1. The present and potential customers and target market of the business a) Other business. occupation. Why do/ should customers buy from you rather than the What is your competitive advantage? competitor? 153 . b) Consumers: age. income level. region covered.
4. What market research do you need to carry out? What information do you need? How will you get it? 154 . What market research have you carried out so far? What are the (consumption patterns and trends)? results 5.