THE FOUNDATIONS OF

ENTREPRENEURSHIP

Created by Fahim Bhatti

BUSINESS
“Any activity which is undertaken with an
intention to earn profit is called business”
ENTREPRENEUR
“Is the one who creates a new business in
the face of risk and uncertainty, for the
purpose of achieving profit and growth, by
identifying significant opportunities and
assembling the necessary resources to
capitalize on them”
CHARACTERISTICS OF ENTREPRENEURS

1) Desire for Responsibility

2) Preference for moderate Risk
3) Confidence in their ability to Succeed
4) Desire for immediate Feedback
5) High level of Energy
6) Future Orientation
7) Organizing Skills
8) Value of Achievement over Money
(RRS FEF OA)
BENEFITS OF ENTREPRENEURSHIP

1) Opportunity to create your own Destiny

2) Opportunity to make a Difference
3) Opportunity to Reach your full Potential
4) Opportunity to Reap impressive Profits
5) Opportunity of being Recognized
6) Opportunity to do What you Enjoy

(DDPPRE)
DRAWBACKS OF ENTREPRENEURSHIP

1) Uncertainty of Income
2) Risk of loosing entire Investment
3) Long Hours and Hard work
4) Low quality of life till business Success
5) High levels of Stress
6) Complete Responsibility
7) Discouragement

(IIHSSD)
DEADLY MISTAKES OF
ENTREPRENEURSHIP
1) Management Mistakes
2) Lack of Experience
3) Poor Financial Controls
4) Weak Marketing Efforts
5) Failure to develop a strategic Plan
6) Uncontrolled Growth
7) Poor Location
8) Improper Inventory Control
9) Incorrect Pricing
10) Inability to make “Entrepreneurial Transition”
HOW TO DEVELOP A STRATEGIC PLAN

1) Develop a clear Vision and transform into a

meaningful Mission
2) Assess the company’s strength
3) Scan the Environment for opportunities
4) Identify key factors for Success
5) Analyze the competition
6) Create Company’s Goal and Objectives
7) Formulate Strategic options
8) Translate Strategic plan into Action plan
9) Establish an accurate control
WHAT IS STRATEGIC MANAGEMENT??

 Types of Capital
 Financial Capital
 Human Capital
 Structural Capital
 Customer Capital
ADVANTAGES OF SOLE
PROPRIETORSHIP
1) Simple to create
2) Least Costly
3) Profit Incentive
4) Total Decision Making
5) No Legal restrictions
6) Easy to discontinue
DISADVANTAGES OF SOLE
PROPRIETORSHIP
1) Unlimited Liability
2) Limited Skills and Liabilities
3) Feeling of Isolation
4) Limited Capital
5) Lack of Continuity
ADVANTAGES OF PARTNERSHIP

1) Easy to establish
2) Complementary skills
3) Division of Profits
4) Larger pool of Capital
5) Ability to attract limited Partners
6) Limited Govt. regulations
7) Flexibility
8) Taxation
DISADVANTAGES OF PARTNERSHIP

1) Difficult to create
2) Very Costly
3) Profit Division
4) Dependant Decision Making
5) Legal Restrictions
6) Difficult to Discontinue
FRANCHISE

“A system of distribution in which a semi

independent business owner (Franchisee) pay fee
and royalties to a parent company (Franchiser)
in return for the right to become identified with
its trademark, to sell its products or services,
and often to use its business format and system”
TYPES OF FRANCHISE

 Trade name Franchise

(Trade name is allowed to use with restrictions)

 Product distribution Franchise

(Selective products are available only)

 Pure Franchise
(Whole range of products is available)
BENEFITS OF BUYING A FRANCHISE

1) Management Training and Support

2) Business System
3) Brand Name and Appeal
4) Standardize Quality of goods
5) National Advertising programs
6) Financial Assistance
7) Centralized buying Power
8) Site selection and Territorial protection
9) Greater Chances of Success
DRAWBACKS OF FRANCHISES

1) Profit Sharing and Franchise Fees

2) Strict adherence and standardized
operations
3) Restrictions of purchasing
4) Limited Product line
5) Unsatisfactory Training Programs
6) Market Saturation
7) Less Freedom
ADVANTAGES OF BUYING AN EXISTING
BUSINESS

1) A successful Business may continue to be successful

2) An existing business may already have the best
location
3) Employees and Suppliers are established
4) Equipment is installed and Production Capacity is
known
5) Inventory is in place and Trade credit is established
6) The new Business Owner Hits the ground Running
7) The New Owner can use the experience of Previous
Owner
8) Easier Financing
9) It is a Bargain
DISADVANTAGES OF BUYING AN EXISTING
BUSINESS

1) It is a loser
2) The previous owner may have created ill will
3) Employees inherited with the business may not be
Suitable
4) The business location may have become
unsatisfactory
5) Equipment and Facilities may be obsolete or
insufficient
6) Change and Innovation are difficult to implement
7) Inventory may be outdated
BUILDING A GUERRILLA MARKETING
PLAN
Guerrilla Marketing strategy
“When a Guerrilla grabs its prey, it does not let it
go” (Hold your customer to attract and retain)

Rifle or Shotgun approach

“First aim at your target and then pull the trigger”
GUERRILLA MARKETING
Guerrilla Marketing is an advertising
strategy that focuses on low-cost unconventional
marketing tactics that yield maximum results.

The original term was coined by Jay Conrad

Levinson in his 1984 book ‘Guerrilla Advertising’.

The term guerrilla marketing was inspired by

guerrilla warfare which is a form of irregular
warfare and relates to the small tactic strategies
used by armed civilians. Many of these tactics
includes ambushes, sabotage, raids and elements
of surprise. Much like guerrilla warfare, guerrilla
marketing uses the same sort of tactics in the
marketing industry.
GUERRILLA MARKETING…. 2
This alternative advertising style relies heavily on
unconventional marketing strategy, high energy and
imagination. Guerrilla Marketing is about taking the
consumer by surprise, make an indelible impression and
create copious amounts of social buzz. Guerrilla
marketing is said to make a far more valuable
impression with consumers in comparison to more
traditional forms of advertising and marketing. This is
due to the fact that most guerrilla marketing campaigns
aim to strike the consumer at a more personal and
memorable level.

Guerrilla marketing is often ideal for small

businesses that need to reach a large audience without
breaking the bank. It also is used by big companies in
grassroots campaigns to compliment on-going mass
media campaigns. Individuals have also adopted this
marketing style as a way to find a job or more work.
BUILDING A POWERFUL MARKETING PLAN

Step1: Pin pointing the Target Market

Step2: Determining Customer’s Needs and

Wants through Market Research

Step3: Analyze Firms Competitive

advantages

Step4: Create a marketing mix

THE END