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Entrepreneurship & Business Planning
June 2013

Company Advisor & Professor
SeanWatts@Yonsei.ac.kr
SeanWatts@Hotmail.com
Sean Watts
Consulting experience includes work with:
Many new business start-ups & expansions in Asia
(restaurants & pubs, to fitness centers & financial consultants)
Applied Materials-World’s largest semiconductor producer
Korean Ex-Minister Science & Tech Aecon
Korean Ex-Ambassador to UN USA-CIA
Federation of Korean Industries Daewoo Telecom
Samsung Electronics Egyptian Embassy
Original owner of Korea’s 1
st
Solely Foreign Owned Bar
Sean Watts:
-advises & teaches entrepreneurship, negotiation, & management to SMEs & at Yonsei, Korea’s top private university
-helped increase revenues of Applied Materials up to US $1.08 Billion within 1 year & would love to help you too!
-was based in Asia from early 1990s, worked with 128 countries, and is originally from the Toronto, Canada area
-helped set up 600+ international contracts for one organization alone, & factories in China & business offices throughout Asia
-actively helps entrepreneurs with government programs, offices abroad, ad tips, & ‘free’ student work / research projects
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Make a Business Plan:
Simply Provide Answers to any 100~150 “reasonable” questions
The sooner you can answer them, the sooner you should start your business!
You know details, others do not. Write it down & discuss it with others to test the concept.-prep for next week
Concrete written ideas showing 5W’s & How (Who, what, where, when, why… aka 4Ps & SWOT analysis)
What exactly is your business? Overview? Mgmt? What’s your product /service?
Who will use / Why they’ll use your prod/service & not competitors? Key relations?
How much will you charge? In yr 1, 2 & 3, what’s expected sales? Profit? Assets?
Why invest? If investors are needed, how much $? What will you give in exchange?
Where? How will you operate? Staff? Train? Market? Ensure competitive advantage?
The Biz Plan is a game for you & others: X / √ (Seek feedback & advice)
Allows review of details-did I miss anything? is this smart?
response btwn written words vs ideas/talk
Story of what the business is & will be
All costs, profits, marketing plans, etc
Description of financing & earnings
Collection of ideas to track & follow-up!!!
A way to track big picture & complexity of operations (Bilderberg Group)
For help developing your business: SeanWatts@Hotmail.com
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Pl a n To S u c c e e d

Research:
Consumer Analysis
Cultural Analysis
Marketing Plan
Financial Plan
Competitors
Government
Operations
Industry
Trends
Sales
30 Second Summary (video?)
Business Profile
Product / Service Description
Competition & keys to success
Marketing Report (be careful of SRC, survey, & adapt)
Long Term Objectives
SWOT Analysis (be careful to have action)
Survival Plan Till Break Even
Operations Plan
Start-up Requirements
Action Plan
Financial Statements
Addendum
For help developing your business: SeanWatts@Hotmail.com
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IT’S BEST TO MAKE A 2 MINUTE YOUTUBE VIDEO of yourself.


Make the video An intro presentation of your company & business idea.
Review other YouTube business presentation examples to get ideas.
Learn from YouTube videos of SHARK TANK business presentations.
http://abc.go.com/shows/shark-tank

https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-
ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1

Interesting business idea: LIPSTIX REMIX Re-Color your lipstick, Recover lipstick in the bottom of the
tube and repair broken or melted lipstick. Just Mix, Melt, and Mold www.lipstixremix.com


If you are not good at making videos- consider how these boring videos changed and became great by using a
simple app to develop and add music:

Link to show how tech can develop your videos: http://youtu.be/sP4NMoJcFd4
views: 25,260,174 now.
We're born "as is"... and with an amazing ability to develop if we use resources wisely, especially given the
incredible times and opportunities we have today: Good luck with development this summer all!!
Dayum original: http://www.Youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDY and
Remix: http://www.Youtube.com/watch?v=_Z1Krfww5eE Five Guys Burgers and Fries Review ww.youtube.com
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Main Points To Include
In discussions & presentations… FINAL WEEK for SGC!
Try to present as much about your business idea as possible within 2 minutes
& leave 1 minute for suggestions

MAKE SURE TO INCLUDE WITHIN 2 MINUTES:
-Show your contacts / email / website ~ hand out name cards (& not just names on name cards)
-Exact business & exact prod/service: Don’t assume others know! Teach people the basics, then ask if it’s understand.
-Show detailed competitive advantage / benefits to customers (but not competitors names – “Company A”)
-Show benefits for investors (financials, ROI, and facts for support, etc)
-Show market analysis / References (such as target customer analysis, market size, demographics, etc)
-references -build credibility, promote yourself & network ~Guanxi.
-Show references & info for customers view / language or as much as possible
-Show SWOT (with statements about how to benefit from each)
-Show financials: Income Statement, balance sheet & cash flow statements for 2+ years, & start up financial requirements!
Sales = 100%, COGS=80%, sales=7.5%, gen& admin exp=5%, interest exp=2.5%, tax@30%=1.5%, net income= 3.5%
-Get info from suppliers, real estate agents, newspaper classified ads, even competitors!

DON’T RAMBLE OR GIVE SPEACHES~PROMOTE YOUR BUSINESS & Get Feedback!

For help developing your business: SeanWatts@Hotmail.com
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1: Put Everything In Writing
Ideas, Lists, Goals, Biz & Comp Plans, Contracts

2: Customers – who, where, how to find?
Can you afford to promote? Competitors? SRC?

3: Organize & plan time effectively
Q4, make lists & goals

4: Surround yourself with & learn from Good People,
Staff, Advisors, Board of Directors, etc

5: Understand business, customers competitors,
culture, & the market? Get research analysis or people that know
For help developing your business: SeanWatts@Yonsei.ac.kr
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Pl a n To S u c c e e d

Research:
Cultural Analysis
Marketing Plan
Financial Plan
Competitors
Government
Operations
Industry
Trends
Sales
30 Second Summary
Business Profile
Product / Service Description
Long Term Objectives
Competition
SWOT Analysis
Survival Plan Till Break Even
Marketing Plan
Operations Plan
Start-up Requirements
Action Plan
Financial Statements
Addendum
For help developing your business: SeanWatts@Hotmail.com
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SeanWatts@Yonsei.ac.kr
BUSINESS PLAN OUTLINE
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For help developing your business: SeanWatts@Hotmail.com
Biz Plan Example
2

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BUSINESS PLAN OUTLINE
30 Sec Summary:

Cover Page: Business Name: Your Name: Date:

Executive Summary: Key points to 1
st
explain the business, then
describe & promote it to the reader
Includes: Brief description of your business / Who you are and why
your background, experience and education (given this market)
make this venture more likely to succeed / Key business objectives /
Key info – who are the customers, major competitor, industry
trends/Selling strategies/Gross revenue forecast/Gross profit
forecast/Net Income/Number of clients/customers/How much
money is needed to start the business and when will the business
break even/Be concise and precise and capture the essence of your
business in the Summary-Written last, after the Plan has been
developed-One page preferred, two pages maximum









BUSINESS PLAN
30 Sec Summary
Business Profile
Prod/Serv Info
Long Term Plan
Competition
SWOT Analysis
Survival Plan
Marketing Plan
Operations
Start-up
Action Plan
Financials
Addendum
For help developing your business: SeanWatts@Yonsei.ac.kr
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BUSINESS PLAN OUTLINE
Business Profile:
Describe your business clearly. Is this a new business, a franchise or
the purchase of an existing business/Type of business – retail,
manufacturing, service/Location of business/
Product(s) you will be selling and/or services you will be providing/
Type of business organization (proprietorship, partnership,
incorporation)/Ownership – names of owner(s) and percentage/
History of business (if applicable)/Relevant dates – start-up,
expansion/
How you determined that this business will be appropriate, profitable
and possible/
What you have done, to date, on the development of your business.
Steps you have taken/When you expect to generate the first
revenues/Is the business year-round or seasonal? If seasonal, what
will you do during the off-season

Management -Outline the credentials of the owner(s) /Remember to
include the 3E’s: /Education/ Experience/ Expertise -Also provide
brief description of associates, support personnel and network
support









BUSINESS PLAN
30 Sec Summary
Business Profile
Prod/Serv Info
Long Term Plan
Competition
SWOT Analysis
Survival Plan
Marketing Plan
Operations
Start-up
Action Plan
Financials
Addendum
For help developing your business: SeanWatts@Hotmail.com
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BUSINESS PLAN OUTLINE
Product and/or Service Description: complete description of the product(s) service(s)
and the benefits to the customer/Many businesses have 1’ and 2’ products or services.
Identify these as 1’ or 2’ and provide descriptions
Long Term Objectives: vision of business in 3 to 5 years
Marketing Plan: GET & DESCRIBE RESEARCH about your business… market
reports, market analysis is vital! Show what you found, and how it relates to and
justified your business/Potential customers – how many have you talked to, what did
you ask, what did you find out, how many are likely to buy (develop survey
questions)/Market segments (geographic, demographic, product/service usage)/Target
demographics / potential customer group. Be specific and list as many characteristics as
you can. /What are their needs, how many customers are there? Trends in the industry.
Is it in growth or decline. /Outline the immediate and long term outlook of your
industry, its size and potential for growth/Features of your product(s) service(s)/What
distinguishes you from your competition? What is your competitive advantage – your
unique position in your industry/Your competitors – direct and indirect/Their strengths,
weaknesses, opportunities, threats… & show how you will take action to develop from
these points!! Show their market share (if available)/Their competitive
advantage/Pricing strategy. What price will you change? How did you arrive at that
price? Will you offer discounts–when where, why? How does your pricing strategy
relate to your target customer group(s)?/How are products delivered, i.e. distribution
network /How will you advertise and promote your business

SWOT Analysis: Outline, to the best of your current knowledge, all of the factors
identified by a SWOT Analysis and how you intend to deal with them (e.g. use
strengths, fix weakness, seize opportunities, counter threats)










BUSINESS PLAN
30 Sec Summary
Business Profile
Prod/Serv Info
Long Term Plan
Competition
SWOT Analysis
Survival Plan
Marketing Plan
Operations
Start-up
Action Plan
Financials
Addendum
For help developing your business: SeanWatts@Yonsei.ac.kr
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Sales Plan -Think Mutual Benefit
What’s the benefit to users?
Needs & wants of consumers
Note belief & cultural differences
Establishing your NETWORKING goals
Get your name out there, find strategic alliances
It helps to have a polished :30 introduction
Locate and list in your plan one event per month
Keep up with your contacts
Once contact is made, try to stay in touch
Clippings, news items, referrals, etc.
Organizing your network
Use technology to make keeping in touch easy
Try to introduce contacts that can benefit each other
Mastering the cold call and networking events
Start by warm calling
Set event goals for yourself & budget for them!
For help developing your business: SeanWatts@Hotmail.com
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Do Market Research, Get Market Analysis Reports & Advice
& Understand Customers Values & Cultural Differences!!
“Good” marketing is mostly about researching the customers & giving them what
they want. Most people misunderstand and think its making something sexy.
Build a solid foundation of facts upon which to base your business
Apply your market research to your business decisions

Find & Use Triggers: What makes consumers go “wow, ah, yeah, mmm, me too,”
-then use that trigger consistently in your marketing

Be on the lookout for ways to diversify
Create strategic alliances & Cultivate referral sources

Leverage the data as the business evolves
Increase market share, Grow the business (trading area and/or offering)
Delegate, Outsource, & use word of mouth

INFO IS POWER & WEALTH… collect it, gather it, test it, get advice.
Marketing Plan
For help developing your business: SeanWatts@Yonsei.ac.kr
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REVIEW OF TRANSACTIONS
Exchange
A B
Delivering
Value
Communicating
Value
Creating
Value
Value
and beneficial
relationships
Noise (SNS)
Noise (SNS)
Noise (SNS)
4Ps & SWOT vs 5W’s & H
SeanWatts@Hotmail.com
Be Mutually Beneficial
vs Greedily getting what you want
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Professor Watts’ Marketing Impact Factor
Who cares what you think? No one! Test others!
Research & learn, properly (SRC),
what they think, like, & what makes them say
“Ah,” “Oh,” “Yeah,” etc.

Find what words, pictures, smells, services, etc associate to your
business & use these words to promote.
Make sure to relate & impact customers.
**Don’t change ads for 3 months.
Be prepared, consistent, patient & persistent.

For help developing your business: SeanWatts@Yonsei.ac.kr
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USE THE WEB - websites show people your biz, payment you accept, operating hours, etc.
Facebook.com MySpace Cyworld Daum OkOkOkOk Photobucket
Korea Times Craigs RokOn Naver Eloquence Dave’s ESL
10 Magazine English Spectrum Seoul Scene Korea Herald
For help developing your business: SeanWatts@Yonsei.ac.kr
x
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Advertising
WORLD’S PERFUME No.1
80/20 Rule
www.contact.com Kangnam
SeanWatts@Hotmail.com
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Marketing Translation Mistakes

USA ‘ Body Bags’ = Chinese &
German for ‘knapsack’

‘Gerber’ a baby food maker
= French word for ‘vomiting.’


‘Waterpik’ uses another name in Denmark.
‘Pik’ = male genitals & ‘water’ = ‘vand’
‘vandpik’ is a term for the morning erection

Pepsi was sued in India for glorifying child labor on TV.
Cricket team winning huddle has a boy serving Pepsi.

German words ‘break’ = ‘destroy’ & ‘Latte’ = ‘erection’
"morning latte" =waking up in the morning with an erection!
so a ‘morning latte break’ is destroying that erection.

Avoid Cultural Mistakes

For help developing your business: SeanWatts@Hotmail.com
Back-Translate, Survey, & Recheck to Avoid Mistakes
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SeanWatts@Hotmail.com
PSY & Acceptable Mktg
Clowns & PSY fit mainstream-friendly role of male jester, & thanks to PSY’s decidedly
non-pop star looks, in a very non-threatening package. Combine what people like - funny
music video, goofy dance, & a catchy tune - comical & non-threatening.
Compare: Bruce Lee, Jet Li, Rain, Girls Gen, etc
http://www.racialicious.com/2012/09/20/psy-and-the-acceptable-asian-man/
Gangnam Style= PROOF Net, Social Media & Video made world smaller-Marketing must adapt!
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Marketing Strategy
Marketing Mix (4Ps)
Product Price
Place Promotion

Positioning- designing company’s offer
& image to occupy a distinct & valued
place in customers’ minds (Kotler, 2003)

It takes time to build a brand ~ 3+ months
survey customers for feedback & react
don’t change basic message often
find the ‘ah’ factor & use it always

Advertising
Personal
Selling
Sales
Promotion
Public
Relations
For help developing your business: SeanWatts@Yonsei.ac.kr
Promo Mix
80/20 Rule
N
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Promotional Methods
80/20 Rule
N For help developing your business: SeanWatts@Yonsei.ac.kr
Steps to Personal Selling
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What Is Your USP & Competitive Advantage?
Unique Selling Proposition
What attracts customers away
from the competition?

Compare your business offer to
competitors.
Are you at a cost advantage or
disadvantage?
Quality
Location
Selection
Service
Speed/turnaround
Price
What you value may differ from what
customers value. Learn the difference.
For help developing your business: SeanWatts@Hotmail.com
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• Old Way of Development:
• Trade shows & fees
• Send top executives to event
• Send expensive booth to event
• Give away many toys/gadgets
• Collect many name cards
• Attend 1~2 events/year

• Cost: $61,500
• Expected Sales $600,000

SeanWatts@Yonsei.ac.kr
Old vs New Business Development
Tech Way -use web, gov’t & others:
• Share TC/web/office sites
• Send 1/few staff many places
• 24-7 promo (web, facebook, twitter)
• Arrange many events/trip
• Get VTCs promoting you by word
of mouth internationally
• Cost: $16,820!
Contracts Negotiated $80 million
Contracts won = $21 million

vs
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90% of some embassies only develop businesses
Often less than 5% of embassy work is on immigration / passports
Most large cities in the world have embassies & consulates-use them!
Business with Government-Virtual Trade Commissioners (VTC)
N
SeanWatts@Hotmail.com
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BUSINESS PLAN OUTLINE
Operations: How does business operate – you go to clients, clients come to you,
retail environment etc. /Will you be a sole proprietor, a partner or will you
incorporate? If a partner, describe the relationship, the reason for the
partnership, and the ownership percentages/Describe any special laws or
regulations that affect your business/Include names of your lawyer, accountant
and bank/Operational details of the location you have chosen/Lease
arrangements/cost/details. By-laws, parking. /If a home based business – what
are the advantages and why it will work/Suppliers (if applicable) – pricing,
discounts, credit terms offered /Equipment requirements – office, production.
Will you lease or buy/Production details (if applicable) – automated or
manual/Out-sourcing, sub-contracting/Will you need employees? How many,
what skills, etc.?
Start-up Requirements: Fixed assets – equipment, furniture, vehicle, etc. The
cost (or value if they are already owned personally and are being brought into
the business). How much working capital is required?
Action Plan: Should cover first three months or more/Also outline specific
steps/actions planned with planned start/finish dates, estimated total time/costs
consumed and, anticipated results Specifics on when you will start the
business and the actions you will undertake to launch your business and
introduce your company into the marketplace
Financial Statements: Generally expected to include: 2 Years Sales Forecast
2 Years Income Statement & 2 Years Cash Flow Forecast
Addendum: Marketing materials, Survey analysis, Owner’s resume,
Other information supporting business idea(s)
Articles supporting identified market trends









BUSINESS PLAN
30 Sec Summary
Business Profile
Prod/Serv Info
Long Term Plan
Competition
SWOT Analysis
Survival Plan
Marketing Plan
Operations
Start-up
Action Plan
Financials
Addendum
For help developing your business: SeanWatts@Hotmail.com
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Operations Plan:
It’s a business . . . run it like one
Get dedicated phone /fax lines with dedicated voice mail
Incorporating business (only if necessary)
Seek professional (legal & tax) advice
Open a bank account record & keep receipts of everything
Long before you need it & ask lots of questions about fees
Register for a tax number
Take advantage of the offset / $30,000 per annum x 3 years
Seek insurance advice
Even if you don’t buy, understand the culture, risks &costs
Know & understand local bylaws (zoning, etc.)
If renting, are you allowed to run a business at home?
Are construction laws met – drain in kitchen, etc?
For help developing your business: SeanWatts@Yonsei.ac.kr
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Find & record 2 or more years financial statements
Know where you stand relative to plan at all times
Arrange for bookkeeping or set up accounting system
Plan your revenue projections below expectations
Plan sales cycle longer than you believe it will take
Plan your expenses higher than you believe they’ll be
Keep up with your data entry
Work backwards from your “ideal income”
Review competitors prices & costs, talk to their suppliers, check online ads for
prices and activity
BE RESOURCEFUL, THOROUGH & REALISTIC!
Financial Plan
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Income Statement
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Percentage of Sales: firms commonly measure each item as a % of total sales,
Eg. how $1 of sales is used by firm to cover various expenses incurred for sales.
As guideline for manufacturing firms:
80% of $1 of sales covers cost of goods sold
12.5 cents of $1 of sales covers operating exp
12.5 cents covers interest exp, & 2.5 cents pays taxes
3.5 cents of $1 sales is net income
% of sales method is useful when comparing a firm to other firms in industry.
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Balance Sheet
as of Dec 31, 2009
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Cash Flow
Statement
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Summarizes where money came
from (inflow or cash receipts) &
where it went (outflow or cash
paid).
-records cash & cash equivalents
entering & leaving a company.
-allows investors to know how a
company's operations are running,
where its money is coming from &
how it’s spent.

Breaks cash flow into 3 categories:
Operating, Investing &
Financing

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For help developing your business: SeanWatts@Hotmail.com
Additional Material
-Product Samples, Images, etc
-Marketing Ads, Fliers, YouTube Videos
-Price lists, Menus, etc
-Maps of your location showing competitors &
customers, suppliers, etc
-Population density reports, GDP/capita for specific
neighbourhoods, demographic reports, etc
-Resumes showing you are built for the business

The sooner, you answer most reasonable questions,
& checked your SRC for customer acceptance…
START!!
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Staff Well ~7 Signs for Super Staff
1. Ability to Deal With Risk - progress towards goals & make
decisions when lacking one or several critical resources or data.
2. Results Oriented - responsible & gets jobs done with common
sense, able to resolve problems.
3. Energy & enthusiasm - produces above expectations without
supervision & is self-motivated.
4. Growth Potential - willing to accept increasing responsibility,
trains & coaches others.
5. Team Player – knows she contributes together with others &
accepts accountability & ownership.
6. Multi-tasking Ability – flexible & can perform more than one
role & willing to do grunt work
7. Improvement Oriented - challenges things constructively &
always tries to learn more
Be surrounded with people better than yourself – You’ll grow!
For help developing your business: SeanWatts@Yonsei.ac.kr
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Costs of getting good staff
Staff are the single most important factor relating to success:
Get & retain the best! Note: Not everyone values money first!
Costs of changing an employee = 70% of 1 year salary
Do-It-Yourself & Advertise: Craigs List, 4Oks, Kijiji, etc
"Hire the Pro" it will cost you, but it may pay off
Contingency Searches. pay only if you hire someone from them
Contract Recruiters. $35 to $70 per hour
Researchers. $50 to $100 per hour
Retained Search.
How do you choose a retained search firm?
ask people who know players.
knowledge & experience of search firm in your industry is important.
The price? usually 1/3 first-year compensation (base & bonus).

For help developing your business: SeanWatts@Hotmail.com
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Surround Yourself with Good People
People, especially staff, are the most important
key to success

Develop your social capital & network

Get & listen to experienced, trusted mentors,
advisors, board members, etc

Get & retain the best!
For help developing your business: SeanWatts@Yonsei.ac.kr
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Time Management
80/20 Rule
 Be flexible
 70% rule – Henry Kissinger
 Leave time for distractions and interruptions
 Effectiveness vs. efficiency
 Doing the right thing vs. doing things right
 Prioritize
 Vilfredo Pareto – find that critical 20%
 Categorize tasks (income producing vs. not)
 There’s only one number one priority
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Manage your time, your love, & money wisely
Honey-do:
Avoid problems associated with ‘Honey, can you do this? Honey, can you do that?’
Make a daily list of everything to do - then prioritize daily crap-Q4
Know your dreams & take daily steps to get them before wasting time
Sheep work for others, wise people work for their love &
get money to work for you… if you don’t want to love an investment,
(if you don’t want to spend required time to become an expert in your
investment field, find someone that does, with facts, history & questions
Not Urgent
Important
Not Important
Tasks to accomplish your dreams
Daily important activities
Important Social Tasks:
Play, Sleep, Study, Friends…

Accidents
Helping friends and family
“issues”
Things that you forgot to plan
For help developing your business: SeanWatts@Yonsei.ac.kr
Not Urgent + Not important =
Not going to be done
Avoid things in this area… tell
people that ask, you will help them or join
them after they help you finish your tasks in
Q1 & 2 first

Answering spam email & texts, etc
Avoid things in this area…
tell people that ask, you will help them or
join them after they help you finish your
tasks in Q1 & 2 first
Q1
Q2
Q4
Q3
Things most important in life
N
O
T

I
M
P
O
R
T
A
N
T















I
M
P
O
R
T
A
N
T

Urgent
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Column A
In the washroom
Sitting at red lights
Eating
Waiting in line
Playing telephone tag
In meetings
Opening junk mail & Texts

Column B
6 months
8 months
2 years
5 years
6 years
7 years
8 years
How do we spend our time?
Study conduced by M. Fortino
For help developing your business: SeanWatts@Hotmail.com
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anage your time, your love, & money wisely
Plan for long term dreams-in writing, then prioritize daily crap-Q4
Know your dreams & take daily steps to get them before wasting time
Sheep work for others, wise people work for their love &
get money to work for you… if you don’t want to love an investment,
(if you don’t want to spend required time to become an expert in your
investment field, find someone that does, with facts, history & questions

20 yrs: be on a boat, &properties & occupied making a difference, advising, consulting, teaching part time globally
10 yrs: have enough rental properties for family & investment requirements, be teaching, consulting & advising, be
active with associations & memberships
5 yrs: detailed items that will produce results that definitely lead to your goals
2 yrs: detailed items that will produce results that definitely lead to your goals
1 yrs: detailed items that will produce results that definitely lead to your goals
6 months: detailed items that will produce results that definitely lead to your goals
3 months: detailed items that will produce results that definitely lead to your goals
2 months: detailed items that will produce results that definitely lead to your goals
1 month: detailed items that will produce results that definitely lead to your goals

This info is vital to your success


Map your LONG TERM dreams in writing since everyone forgets the small things
-it’s the small forgettable things that makes you happy and successful

For help developing your business: SeanWatts@Yonsei.ac.kr
Start
Never
ending
In half that time, I need…
In half that time, I need…
In half that time, I need…
In half that time, …
My dream is, in …
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Portable
Funhouse
Scraper
Broom
Grease
Wedding
Dress
Rentals
Clean Bottle
Club
Reservations
Portable
Kids Chair
Nose Filters
Safety belt
Safety switch
From Nose Filters, to Folding Furniture, to Portable Fun
usiness lans are your Key to a Fabulous Future
Lipstick
Remix


(combine
leftovers)
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Success Stories- Overcoming different values
Tesco partnered Samsung -quality staff & reputation. -
localized management CEO =ex-Samsung. (only 6 foreigners)
Tesco intro as Korean cautious of changes &Western practices.
2 billion pounds sales in Korea in less than 10 yrs
(64 years+ for 2 billion pounds of sales in UK)

Carrefour ~French management & culture

Success depends on selling to Korean customers.
Koreans know best what products & offerings will work!
Work with & Listen to Koreans!

Beware of SRC!! Get good people around you & use them ~ Staff & Advisors

For help developing your business: SeanWatts@Yonsei.ac.kr
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• Formal Structure
• Informal Structure
Organizational Structure
• Leadership and Decision Making
• Motivation
• Communication
Managerial Processes
• Recruiting and Training
• Reward and Promotion System
• Severance and Retirement
• Trade Unions
Human Resource Management
Managerial Styles of Korean Companies
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K-Type Management
Clan
Management
Harmony-
Oriented Cultural
Values
Compensation
based on
Seniority and
Merit Rating
Paternalistic
Leadership
Top-down
Decision
Making
SeanWatts@Hotmail.com
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1. Centralization
2. Formalization
3. Hierarch
Clear-cut Job
Description
• Formal Structure
• Informal Structure
Organizational Structure
Dominate the
Management
Power
Hyul-yun
(Family
Ownership)
Ji-yun
(Region Related)
Hahk-yun
(School Related)
HIGH
LOW
SeanWatts@Hotmail.com
1 - 54
• Leadership and Decision Making
• Motivation
• Communication
Managerial Processes (Planning, Directing, Organizing, Controlling)
Leadership & Decision
Making:
• Manage on the basis of
principles governing the
family or clan system
• The father = unquestioned,
respected, absolute power &
Full Responsibility to feed
the family and to decide the
future of his children
• Top-Down Decision-Making
• Inhwa: Harmony between
Unequal in rank, power and
prestige
• Make decisions with the
consultation of subordinates:
Sajeonhyupui(사전협의)
BUT, Korean Subordinates
are reluctant to express their
opinions
Motivation
• Highly motivated, Enduring
long work days
• The Key Confucian Values:
Diligence and Harmony ->
Work ethic high
• Extrinsic Factor (Wages,
Working conditions, job
security) > Intrinsic Factors
(Creativity and Achievement)
Communication
• Hierarchical Relations
• Upward formal
communication > horizontal
Interdepartmental lines due
to high centralization of
authority
• Culturally do not share
information with others
except within close personal
relationship
• Good at Free
Communication on Informal
Occasions
SeanWatts@Hotmail.com
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• Recruiting and Training
• Reward and Promotion System
• Severance and Retirement
• Trade Unions
Human Resource Management
• Twice a year
• Reputable Universities
• English Proficiency
• Tests for Knowledge
• Personal Interviews
• Various Experiences
Recruit
Own employee
Training Center

Train
SeanWatts@Hotmail.com
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• Recruiting and Training
• Reward and Promotion System
• Severance and Retirement
• Trade Unions
Human Resource Management
Reward &
Promotion
Performance
Seniority
Family Ties (혈연)
School (학연)
Region (지연)
SeanWatts@Hotmail.com
1 - 57
• Recruiting and Training
• Reward and Promotion System
• Severance and Retirement
• Trade Unions
Human Resource Management
Work in One
Company Till
Retirement
Higher Rate of
Job-hopping:
Change jobs fairly
freely
CHANGE
SeanWatts@Hotmail.com
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• Recruiting and Training
• Reward and Promotion System
• Severance and Retirement
• Trade Unions
Human Resource Management
After the
Korean
War
• American-
style Labor-
related
Legislation
1960
• Government-
dominated
Federation of
Korean Trade
Union(FKTU)
emerged
1960s – 1970s
• Park Chung
Hee
Government:
Special Act on
National
Security 1971
• Restriction on
any Labor
Confrontation
The Political
Reform of 1987
• Government
Intervention in
Labor
Management
Relations was
Removed
• Granted
Workers Right
to Unionize
SeanWatts@Hotmail.com
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Source: Tarun Khanna, Jaeyong Song, and Kyungmook Lee (July–Aug 2011)
The Paradox of Samsung’s Rise, Harvard Business Review, Accessed from HBR.ORG
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Source: Tarun Khanna, Jaeyong Song, and Kyungmook Lee (July–Aug 2011)
The Paradox of Samsung’s Rise, Harvard Business Review, Accessed from HBR.ORG
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SeanWatts@Hotmail.com
Please take notes, ask questions, & share advice.

Also evaluate this presentation and take notes…

Present your business plan at the end of this 2 week program.
While presenting a business, show:
•Details- make sure the listener knows your contacts & products/service;
•Integrity- know your facts; reputations are made in seconds; protect it!
•Passion- get attention. You’ll be better than others, if you love ‘it’;
•Experience- show you can do what you are doing;
•Knowledge- be aware of key facts & people /players related;
•Skills- tech, marketing, public relations, planning;
•Leadership- show you can work with others;
•Commitment- investors and customers want to connect with stability;
•Vision- see & understand your environment, & relation to the world.


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I-Know yourself, goals, passions, talents, values, & your environment (society, laws,
trends) & work mutual beneficially. "Pay it forward". -love doing it... Don’t follow as "sheep."
Points to Ponder When Starting a Business
Imagine: a pile of sheep supporting billowing clouds of dreams, with successful people happily
sculpting each ‘cloudy dream.’ On a top cloud (dream) is Bill Gates, surrounded lower down, by
entrepreneurs (microloans in Pakistan, Mark Zuckersburg, Facebook, etc).
B-Be passionate in what you do & want it.
E-Extend your comfort zone. try new things, stretch your limits & continually improve.
L-Lies & luck don't work -be true to yourself. Luck is created with hard work, doing something each
day to chase opportunities & developing a network ."10,000 hour rule“
I-INSTALL GOALS, long & short term (Q4) written goals
E-ENJOY DEVELOPMENTS, WORK & "HARD WORK."
V-VARY-VERY~ efforts (reading, environment, networks, & imaginative developments)
To be persistent, have goals that you're passionate in & believe :
1. Create a clear & accurate goal;
2. Have a clear, written, constantly upgraded plan;
3. Immerse yourself in it;
4. Surround yourself with the best, talented people;
E-Expect & accept obstacles, “NO,” etc
www.twitter.com
www.elance.com
www.youtube.com
www.humanmetrics.com
www.developage.com/blog
http://khanacademy.desk.com
www.internetworldstats.com
http://technomarketer.typepad.com
www.tradecommissioner.gc.ca/eng/our-services.jsp
http://global.seoul.go.kr/index.do?lang=ENG&mode=H
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Entrepreneurship Facts or Fiction??
Businesses Fail if they Fail to Plan
• 90% of new businesses fail in 1
st
year
• 70% of new businesses fail in 2
nd
year
• 40% of new businesses fail in 3
rd
year

• New businesses usually require long hours & very hard work!
• It’s not 9 ~ 5pm

• Successful people often lose initial investments…
- mostly due to poor planning & parochialism!!
For help developing your business: SeanWatts@Yonsei.ac.kr
GEM - http://www.gemconsortium.org/docs/263/gem-2007-global-report
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Province:
Ontario 86.3
Quebec 85.7
Alberta 85.2
Newfoundland 81.5
Prince Edward Island 83.1
Nova Scotia 83.3
New Brunswick 83.2
Manitoba 84.0
Saskatchewan 84.5
British Columbia 85.5




Industry:
Finance and Insurance 89.2
Real Estate Operators &Insurance Agents 88.6
Business Services 88.1
Fishing and Trapping 89.4
Agriculture 85.4
Mining, Quarrying and Oil Wells 87.2
Manufacturing 87.5
Construction 85.4
Transportation and Storage 85.9
Communications and Other Utilities 85.5
Wholesale Trade 88.0
Retail Trade 84.8
Accommodation, Food and Beverage 83.5
Other Services 80.9
New Businesses’ Likelihood of Survival
- Probability Estimates at Mean, Prov & Ind

Probability values indicate that there are only modest differences in the survival rates of new firms across provinces.
The highest success rate with likelihood of survival is 86% in Ontario & the lowest is 82%.
Finance & insurance has the highest survival rates 89% with fishing and trapping while the
residual group of other services-including amusement & recreational services, & personal & household services=82% .
For help developing your business: SeanWatts@Hotmail.com
1 - 65
Reasons Behind Discontinuing
Businesses
2/3 survive at least 2 years
1/2 survive minimum 4 years
1/3 were successful at closure
1/3 of firms that discontinued
-they merely changed
form of business
or ownership

Key:
Plan &
Research
Market
-42 countries x 2000 adults surveyed each /
minimum~150,000 surveyed
-by London Business School
www.gemconsortium.org/docs/263/gem-2007-global-report
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Education
Work
Experience
# Years
Worked
20+ Years
15%
Never
34%
Large firm
(1000+ staff)
10%
Owner Profiles Before Starting
New Business
Vocational School
4%
Some college
24%
College
diploma
35%
Advanced
Degree
18%
For help developing your business: SeanWatts@Yonsei.ac.kr
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KNOW & USE KOREAN SOCIAL NETWORKS:
Naver blog, Daum blog,Yozm, Egloos, Tistory, Cyworld
& me2day (13 mil. users in Feb, 2013 –more than domestic Facebook 8 million,
and lower Twitter, yet 2Xs higher than world average).
Job recruitment agencies: Findjob, Scout, Career, with
SaramIn, JobKorea, and Incruit, top platforms in Korea.
-SaramIn has 1.5 mil. job seeker profiles.
-Korean professional network - Linknow.
-Competitor: me2day.
-LinkedIn - world's largest professional network
--200 million members in 200 countries,
-with 323,971 in Korea~30 x less than Facebook
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More Info
Korean Governmental Organizations
Korean Educational Development Institute (KEDI): www.kedi.re.kr
Korea IT Industry Promotion Agency (KIPA): www.software.or.kr
Korean Culture & Content Agency (KOCCA): www.kocca.or.kr
Korea Trade-Investment Promotion Agency: www.investkorea.org
Internet Statistics Information System (ISIS): isis.nic.or.kr
Min of Commerce, Industry, and Energy (MOCIE): www.mocie.go.kr
Min of Education & HR Development (MEHRD): www.moe.go.kr
Min of Information and Communication Korea (MIC): www.mic.go.kr
National Internet Development Agency of Korea (NIDA): www.nida.or.kr
Korean Industry Associations
Digital Content Forum Korea (DCFK): www.dcforum.org
Korea Contents Industry Business Association (KIBA): www.kiba.or.kr
Korea E-learning Industry (E-lrc): www.elrc.or.kr
The Annecy International Animation Film Festival: www.annecy.org
Korean Media
Market Brief: Digital Content Market in Korea
Digital Chosunilbo: http://english.chosun.com
Donga Ilbo English Edition: http://english.donga.com
The Electronics Times of Korea: http://english.etnews.co.kr
The Korea Economic Daily: www.hankyung.com
The Korea Herald: www.koreaherald.co.kr
The Korea Times: www.koreatimes.co.kr
Korea Trade Investment Promo Corp
www.kotra.or.kr
National Internet Development Agency
Tel:(822)2186-4623 www.nida.or.kr

Korea IT Industry Promotion Agency
myou@software.or.kr www.software.or.kr
World Statistics
www.cia.gov/cia/publications/factbook
International Trade Opportunities
www.infoexport.gc.ca/ie-
en/IndustrySector.jsp
Strategis –detailed Canadian industry, business,
and consumer information
http://strategis.ic.gc.ca/engdoc/main.html
SourceCan – change name to: SourceCAN,
Canada's e-marketplace and business
opportunities network.
www.sourcecan.com/E/index.cfm
Exporting & Importing Info –Business Service
Center: www.cbsc.org/servlet
SeanWatts@Yonsei.ac.kr
Check local government websites 1
st

Embassy & trade offices = $100~$300/month
Cyber business center www.trademarketkorea.com
Seoul Global Center
http://global.seoul.go.kr
www.hikorea.go.kr
www.investkorea.org
SeanWatts@Hotmail.com
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Suggested Readings Author
• 4-Hour Workweek Ferriss, Tim
• Entrepreneurship Mariotti, Steve
Starting & Operating a Small Business
• Young Entrepreneur’s Guide Mariotti, Steve
to Starting and Running a Business
• 1
st
Things 1
st
& 7 Habits Covey, Stephen
• Rules for Revolutionaries Kawasaki, Guy
• Start Your Own Business Lesonsky, Rieva
• What No One Ever Tells You Norman, Jan
about Starting Your Own Business
• Six Thinking Hats De Bono, Edward
• A Kick in the Seat of the Pants Von Oech, Roger
• Doing Business in Seoul SGC
SeanWatts@Hotmail.com
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Thanks - Seoul Global Centre
Steve McKinney, Hong Seok Choi, Jihye Park
& Park Won Soon
My wife HyunKyoung & 4 kids
SeanWatts@Yonsei.ac.kr
SeanWatts@Hotmail.com
Cell: 010-5552-5568
Management & Entrepreneurship, Professor, Chair of Business & Economics, Yonsei Univ. & Company Director, Adviser & Consultant