Entrepreneurship Manual: Don't Just Start A Business... Start A Successful One!

Don’t just start a business... Start a successful one!
Entrepreneurship Manual
Don’t just start a business...

Start a successful one!
Structural Funds Programme for Malta 2004-2006

Project part-financed by the European Union: European Social Fund
Co-financing rate: 75% European Union, 25% Malta Government
First published in November 2007

Researched and written by Marika Fsadni
© Employment and Training Corporation, 2007
Employment and Training Corporation (ETC)

Óal Far BBÌ 3000, Malta
Tel: (+356) 2220 1100
Fax: (+356) 2220 1802
Email: etc@gov.mt
www.etc.gov.mt
Employment and Training Corporation (ETC)

Valletta Training Centre
76 Old Theatre Street
Valletta VLT 1427, Malta
Tel: (+356) 2124 5778/9
Fax: (+356) 2124 5242
Email: etc@gov.mt
All rights reserved. No part of this publication may be

reproduced, stored in a retrieval system or transmitted
in any form or by any means without prior permission in
writing of the Employment & Training Corporation,
which must be obtained beforehand.
ISBN-13: 978-99932-686-6-6
Production: Outlook Coop
Structural Funds Programme for Malta 2004-2006

Project part-financed by the European Union: European Social Fund
Co-financing rate: 75% European Union, 25% Malta Government

Contents
Entrepreneurship is the key....................................................................................... 5
Foreword.......................................................................................................................... 7
How to use this business manual.............................................................................11
Phase 1: Identifying the personal strengths

Introduction ..................................................................................................................16
Who is an entrepreneur?............................................................................................16
The major personal strengths ................................................................................16
A positive attitude is essential . ........................................................................17
Strong leadership skills........................................................................................18
Successful entrepreneurs are successful leaders..................................18
Task-oriented and person-oriented leadership.......................................18
The effective decision-maker..............................................................................21
A results-oriented problem-solver ................................................................22
Addressing the ‘am i good enough?’ syndrome...........................................23
Other personal strengths....................................................................................26
Phase 2: Turning your idea into a successful business idea!

Introduction .................................................................................................................30
The steps to be taken by the entrepreneur.........................................................31
Using outside resources............................................................................................39
Engaging business consultants . ......................................................................40
Using services offered by Government Agencies/Departments.............42
Phase 3: Writing a business plan for your successful idea

Strategic management and developing a business plan . .............................44
The search for a competitive advantage . ..........................................................44
Writing the business plan ........................................................................................46
The entrepreneur’s business plan . .................................................................47
The marketing plan ..............................................................................................55
The operations plan .............................................................................................60
The financial plan ..................................................................................................61
Setting up my own successful business - a re-cap!..........................................65

Author’s final words...................................................................................................70
List of references.........................................................................................................71
Project Leader’s Acknowledgements....................................................................72

Entrepreneurship is the key

The Employment and Training Corporation (ETC) has during
the past years been one of the forerunners in the promotion of
an entrepreneurial culture. The Corporation was one of the first
entities to start offering training opportunities to individuals
who were inclined to set up their own business and to others
who had already launched their business but who could also
benefit through improved business management skills.
The Employment and Training backing of ESF funds, the project,

Corporation then further developed in particular, aims at encouraging
this service by introducing an women to consider the option of
innovative business start-up setting up their own business and
scheme commonly known as the at the same time, create more
INT scheme or Ibda Negozju Tieg˙ek and better jobs and promote
(Start Your Own business), which entrepreneurship. Some of the
besides training also provides outcomes of this ESF project were
guidance, support, mentoring and the provision of training to a number
a start-up grant to successful of female participants interested
participants. in starting their own business, the
setting up of a resource centre,
Following the success of the above organisation of a marketing
initiatives, the Employment and campaign promoting business
Training Corporation embarked start-ups as a route to employment
on a new venture, to promote and the development of a training
an entrepreneurial culture manual as a guide to starting a
among women. With the financial business.
This manual illustrates the different I would like to thank the Project
steps one must take when entering Leader, Philippe Vancell, and staff
the field of entrepreneurship. It within the Corporation for their
was developed by Marika Fsadni dedication to making this project a
on behalf of the Corporation success, as well as the management
with financial support from the team and the administrative
European Social Fund. The aims staff for their equally important
and objectives of the project are contributions. Last but by no
in line with those portrayed by means least, the successful
the European Social Funds in that outcome of this project is also due
it aims to promote economic and to the collaborative effort of a
social cohesion in member states number of entities that enabled the
and as this manual illustrates, Corporation to utilise these funds
makes a real difference to the lives for the benefit of its clients. While
of persons benefiting from this an exhaustive list is not possible,
fund. the Corporation would like to thank
in particular the various Ministries
as well as the Managing Authority
for its support in the application for
and utilisation of these funds.
Michael Balzan
Chairperson
ETC

Foreword
Ten years ago, I was at a crossroad female entrepreneurs last year
in my career. Armed with little more [a survey commissioned by Malta
than my education and some work Enterprise in November 2006], 31%
experience in the public and private of the entrepreneur respondents
sector; saddled with hefty monthly claimed that the reason for setting
house loan repayments and with no up their own business was because
regular income; my choices at the they wanted to do something
time were limited, so I decided to of their own and wanted to be
take the plunge and start my own their own ‘boss,’ while a close
business. 28% indicated that it was always
their ambition/dream to set up
Today, ten years later, I run my own their own business. The rest of
marketing and HR development the entrepreneur respondents
consultancy firm, I have a sound indicated that they either
client base, employ my own work wanted a new challenge, sought
team, have my own office with a 5- a new business opportunity, had
workstation LAN and about to move quarrelled with their previous boss
into larger offices very shortly… and hence were out of a job, or
and, I am, above all, a woman simply because they set up their
entrepreneur! business by sheer chance and
coincidence.
Is this a unique experience? Not at
all! Every successful entrepreneur Whatever the initial reason for
relates his/her own experience on starting your own business, what is
how it all started. From a survey really important is not the ‘why’ or
I conducted with local male and ‘how’ you start but what degree of
commitment you are prepared to seeds I had sowed for three solid
take to not just starting a business, years were already bearing fruit!
but to start a successful one!
What renders a business successful,
It is not by chance that I chose be it large or small, a service-
the title of this business manual oriented operation, an importing
“Don’t just start a business... Start house or a manufacturing concern,
a successful one!” – I chose this etc, is when the business manages
title with a purpose. Anyone can set to identify and sustain, what
up his/her own business. We hear is known in management as a
of and see so many businesses, “competitive advantage” [Michael
large and small, being set up but Porter, 1980] over its competitors.
which, sadly, by their third or This “competitive advantage” is the
fourth year of operation, they aggregation of factors that sets a
simply either phase out, disappear business apart from its competitors
or go bankrupt. From my own and gives it a unique position in
experience, I found that the real the market, i.e. how successful
challenge is not actually starting the budding entrepreneur is in
a business but to, year after year differentiating his/her business/
of sheer hard work and dedication, product from the rest of his/her
manage to make it grow and competitors within the industry.
render it successful!! This, I admit,
is not an easy task! I distinctly How can an entrepreneur do this?
remember some ten years ago By skilfully identifying his/her
when I had decided to give it a try, company’s “core competences,”
I had promised myself not to look which are a unique set of lasting
back for a good three years but to capabilities that the entrepreneur
evaluate my position at the close develops in key operational
of the third year and then decide areas, e.g. in customer service,
on whether to continue to grow or product quality, product design,
phase out. At the close of my third packaging, etc, which are perceived
year of operation, there was no as essential by customers and
such decision to be taken as the which are difficult for competitors

to copy. When the entrepreneur eg. speed of delivery, closeness
manages to identify his/her to customers, ability to innovate
business’s core competences and fast, etc. The key to success of
match these with what are known these core competencies is for the
as the “key success factors” entrepreneur to concentrate them
[critical factors] of the industry on providing superior service and
sector the business is operating value for the entrepreneur’s target
in, then the entrepreneur is customers. The entrepreneur would
guaranteed success! hence have identified the ‘winning
formula’!
However, one may argue, is all
this relevant to an entrepreneur, ‘Small is beautiful’, the ‘young
who is typically characterised by a David’, the ‘sleeping giant,’ the
small operation, limited resources, ‘half-full glass’, the ‘smallness’
limited liquidity, etc? Well, I ask: advantage... All these become
have you ever heard the saying reality only if the entrepreneur
“small is beautiful”? Do you agree truly believes in them and above all,
with it? Do you recall the story of adopts the right positive attitude
David and Goliath? Is this story coupled with sheer hard work.
still relevant in the light of today’s
increasingly fierce and cut-throat When the Employment and Training
competition? Well, it all depends Corporation asked me to write this
on whether you are the optimist business manual, I was pleased to
who perceives a glass half full or be able to share my own personal
the pessimist who perceives it experience as a local entrepreneur.
half empty! The small size of the In fact, I have tried to adopt a
entrepreneur’s business venture simple, structured approach to the
may be used as an ‘advantage’ subject. Moreover, I have purposely
because this smallness will allow chosen to write this business
him/her to do things which larger manual in the ‘first person,’ i.e.
competitors, sometimes known ‘I’, to render the approach more
as ‘sleeping giants’ cannot do, personal, ‘hands-on’ and credible.
10 Don’t just start a business... Start a successful one!
I wrote this business manual to I would like to thank the

encourage all those promising, Employment and Training
up-and-coming would-be Corporation for granting me this
entrepreneurs, male or female, opportunity of writing this Business
who are seriously thinking of Manual. I augur that this publication
setting up their own business. will be of assistance to all those
The suggestions, proposals and budding entrepreneurs who are
recommendations contained in seriously thinking of setting up
this manual are largely based on their own business.
my own ten-year experience as an
entrepreneur operating in Malta, I am also indebted to my family and
on my experience as consultant close friends who have supported
and trainer with local start-up me throughout these last ten years.
businesses and entrepreneurs. I I would like to take this opportunity
have also kept in mind the research to express my appreciation for the
findings of a qualitative market love and affection that have been
research survey I conducted in forthcoming for so many years. One
2006 with local entrepreneurs last word goes to the people who
and would-be entrepreneurs on have assisted me in compiling this
behalf of the Malta Enterprise and business manual, namely Laurence
the Euro-Info Centre [November Zerafa B.Pharm, M.Phil., Dip.L.I.S,
2006]. This research study focused Terence Portelli B.Ed.(Hons.), M.A.,
on the identification of the needs, Carmen Mangion and Marilena Vella
difficulties and challenges faced by for their invaluable assistance with
the local entrepreneur in Malta. the Maltese translation.
Marika Fsadni
November 2007
11
How to use
this business manual
This Don’t start a business... Start w sets goals for him/herself and
a successful one! Business Manual others,
has been written to assist all those w initiates appropriate action to
enterprising, up-and-coming, ensure success,
would-be entrepreneurs who are w and assumes all or a major portion
seriously considering setting of the risk!
up their own business. But, in
reality, who is an “entrepreneur”? This definition of an entrepreneur
Who qualifies to be called an is clearly quite a mouthful. Does
“entrepreneur”? every entrepreneur need to possess
all these qualities? My reply to
As we shall see later on in this this is a definite yes! Although
manual, an entrepreneur is an management theory does provide us
individual who: with an array of varied definitions
w has the ability to identify and of the term ‘entrepreneur’ and
pursue a business opportunity, ‘entrepreneurship,’ the above
w undertakes a business venture, definition encapsulates the essential
w raises the capital to finance it, actions to be performed by an
w gathers the necessary physical, entrepreneur and if he/she manages
financial and human resources to perform each of these actions
needed to operate the business well, then this will undoubtedly lead
venture, him/her to manage a successful
business.
As the name of this business what leadership skills must he/

manual suggests, the object of she possess and what personal
this manual is not simply to list strengths characterise a successful
the business start-up steps which entrepreneur.
should be taken by the would-be
entrepreneur who wants to set The Second Phase focuses on how
up his/her business, but to clearly a skilled entrepreneur may turn his/
illustrate what goes into setting up her idea into a successful business
a new business, ranging from the idea. As we all know, NOT all ideas,
attitude, approach and personal as good as they may seem, may be
preparation of the entrepreneur turned into business opportunities.
to the very development of an However, this Section illustrates
effective business plan to attain a how a would-be entrepreneur may
successful business. assess whether his/her idea fills
a need and whether it meets the
The Manual is divided into three criteria for a business opportunity.
essential Phases, namely: At this stage, it is essential that
w Phase 1 - Identifying the entrepreneur conducts a
the Personal Strengths feasibility analysis of the business
Characterising The Successful idea to determine whether it is
Entrepreneur. viable or not. The Section also
w Phase 2 - Turning Your Idea Into illustrates how the effective use
A Successful Business Idea! of outside sources and networking
w Phase 3 - Writing A Business business relationships may assist
Plan For Your Successful Idea. the entrepreneur to solve existing
problems as well as to avoid
In my opinion, these are the three potential ones.
pillars which characterise the
‘winning formula’ of a successful The Third Phase focuses on
business. The First Phase focuses ensuring that the entrepreneur,
on the ‘entrepreneur’ persona, notwithstanding adopting a
i.e. who is an entrepreneur, what positive attitude, possessing
attitude should he/she adopt, effective leadership skills and
13
strong personal strengths, may still Getting started
be ‘blinded’ into venturing into a
potential unsuccessful business. Too much analysis
Writing a Business Plan for the brings paralysis!
business idea serves as a ‘game
plan’ or ‘road map’ to guide the At times, the most difficult
entrepreneur to accomplish the phase of doing new things is to
business venture’s vision, mission, actually get started, i.e. to take
goals and objectives and even more the plunge and start operations.
importantly, keep him/her from It is good for one to conduct
straying off the desired course. a good thorough assessment
of his/her situation before
All three phases comprise ‘Points To plunging into setting up a new
Remember’ Checklists and ‘Questions business. However, one must
To Ask Yourself’ Sections which assist also be careful not to analyse
the reader entrepreneur to assimilate too much as this might hinder
the essential elements of these three him/her from ever actually
phases. getting started. As the saying
goes: “too much analysis brings
As a conclusive re-cap, the two paralysis!” So, once one feels
essential questions to be asked are: that he/she has what it takes to
w Are you personally prepared to run a business, the next step is
become a promising entrepreneur? “Getting started!”
w Have you conducted a good
initial preparation for your new Just a few pointers before
business? you proceed with reading this
Business Manual:
If the would-be entrepreneur answers
‘yes’ to these two questions, then he/
she has completed the first essential
stage of setting up a business...
successfully!
w Buy a notebook! The Promotion of Equality

Buy a notebook and always keep [NCPE], Malta Enterprise [ME], all
it with you… in your pocket, offer interesting short training
beside your bed, when you are programmes for business start-
driving [obviously do make ups. Also, the Internet may act
sure to park the car before you as an excellent source to identify
decide to jot something down!], good educational business start-
when having a bath, etc. Ideas up sites.
can strike at any time. Write
them down immediately! Also, w And lastly... develop an
make use of forms and charts. observant eye and become a
These may help you organise 24/7 entrepreneur!
information logically and All around us there are people
systematically in order to assist running businesses. What do
you in your decision-making you think you can do better?
process. You may not wish to open a
restaurant, however thinking
w Enrol on a simple management about how your favourite
training course restaurant [which is very popular
Don’t be alarmed! I am not and always very busy] operates,
suggesting that you enrol for a will be a useful exercise for you.
PhD in business management. A As Philip Kotler, a marketing
simple short training programme guru, once said: “Behind every
in management can do the trick! problem there exists a potential
There is an array of training business opportunity,” [Philip
programmes being offered in Kotler, 2006] and the real 24/7
Malta both by the pubic and entrepreneur is the one who
private sectors. The Employment identifies this ‘potential business
and Training Corporation [ETC], opportunity’, while the rest see
the National Commission For only the ‘visible’ problem!
15
Phase 1
Identifying
the personal strengths
characterising
the successful entrepreneur
Should I set up my own business, or not?...

No pain, no gain!
Introduction
Many people go through life wishing they were someone else or they were
doing another type of work. Most people have a desire to change their life
situation. But few people take action to do so…
A small proportion of people are willing to take risks to change their

lives for the better. These people are entrepreneurial because they take
advantage of opportunities to improve their lives. The true entrepreneur
is the person who is constantly changing and growing. Having positive
attitudes and a healthy self-image is essential for all entrepreneurs.
The major personal

Who is an entrepreneur? strengths characterising
An individual who:
w has the ability to identify and
a successful entrepreneur
In my opinion, based on my
pursue a business opportunity;
own experience, on the recent
w undertakes a business venture;
survey I conducted with local
w raises the capital to finance it;
entrepreneurs and on contacts
w gathers the necessary
with my entrepreneur clients, the
physical, financial and human
five major personal strengths
resources needed to operate
characterising a successful
the business venture;
entrepreneur are:
w sets goals for him/herself and
a] Have a positive attitude.
others;
b] Possess strong leadership skills.
w initiates appropriate action to
c] Have a decision-making ability.
ensure success; and
d] Be a results-oriented problem-
w assumes all or a major portion
solver.
of the risk!
e] Address the ‘Am I good enough?’
syndrome.
17
A positive attitude is essential sheer hard work are essential to
being a successful entrepreneur.
Accentuate the positive
and eliminate the negative! The right mental attitude towards
Paul Arden work is extremely important. A
successful entrepreneur enjoys his/
The biggest asset to sustaining her work and is totally dedicated
entrepreneurial ability is a positive to what he/she is doing. His/her
attitude. In addition, determination, positive mental attitude turns the
experience, persistence and just job into exciting, interesting and
rewarding work.
Points to remember
To develop a positive attitude an entrepreneur must:
w Concentrate only on being w Recognise that he/she controls
involved in positive activities. his/her mind and must use it
w Select positive objectives in his/ productively.
her work. w Avoid negative thoughts and ideas.
w Associate with people who think w Believe in him/herself and his/her
and act in an entrepreneurial talents. Success comes to those
manner. who have faith in their own
w Be constantly alert for abilities and use their abilities
opportunities to improve his/her to the fullest extent.
situation, whether it is personal w Relieve mental stress by taking
life, work life or life in the action, i.e. by focusing his/her
community. thoughts on a specific problem.
w Not be afraid to give up an idea Once he/she has reached a
if it is not producing the right decision, he/she must take
results. It is better to change action to solve the problem. The
direction than to pursue an entrepreneur must try to solve
idea that is not working out mental conflicts as quickly as
satisfactorily. possible.
Many people go through life wishing Strong Leadership Skills

that they were someone else or
that they were doing another type Your vision of where or who
of work. Most people have a desire you want to be is the greatest
to change their life situation. But asset you have! Without having
few people take action to do so. a goal it’s difficult to score!
Paul Arden
A small proportion of people are
willing to take risks to change their Successful entrepreneurs
lives for the better. These people are successful leaders
are entrepreneurial because they The total performance of a
take advantage of opportunities business is mainly determined by
to improve their lives. The true the attitudes and actions of the
entrepreneur is the person who is entrepreneur. The effectiveness
constantly changing and growing. of the entrepreneur as a leader is
Having a positive attitude and a determined by the results he/she
healthy self-image is essential for achieves. A guideline for good
all entrepreneurs. leadership is to “treat others as you
would like to be treated.”
Task-oriented and
Person-oriented leadership
Entrepreneurs are leaders by the
very nature of their activities.
There are, in fact, two types of
leadership behaviour which the
entrepreneur has to adopt: [a]. a
goal-setting, goal-achievement,
task-orientation leadership and
[b]. a motivating, human relations,
person-orientation leadership.
19
A task-oriented leader A person-oriented leader
entrepreneur normally exhibits entrepreneur tends to exhibit
the following behaviour patterns: the following behaviour
w Clearly defines his/her role and patterns:
those of his/her personnel. w Show concern for maintaining
w Sets difficult but achievable harmony in the organisation
goals and lets the staff know and easing tensions when they
what is expected of them. arise.
w Sets procedures for measuring w Show concern for workers as
progress towards the goal and people rather than as a means
for measuring goal attainment, of production.
i.e. goals are clearly and w Show understanding and
specifically defined. respect for employees’ needs,
w Actively exercises a leadership goals, desires, feelings and
role in planning, directing, ideas.
guiding and controlling goal- w Establish good two-way
oriented activities. communication with staff.
w Is interested in achieving w Give positive reinforcement to
productivity increases. improve worker performance.
w Delegate authority and
responsibility and encourage
initiative.
w Create an atmosphere of
teamwork and co-operation in
the organisation.
Questions to ask yourself

To assess whether you have the leadership qualities required of an
entrepreneur, you may ask yourself these questions:
w Are you more a leader than a w Do you learn from your
follower? mistakes?
w Do people look to you for w Are you result-oriented and
leadership and advice? do you finish something you
w Can you develop and start?
implement new ideas? w Do you use your power as a
w Do you take an active part in leader to help others?
the life of the community? w Do other people have
w Do you continuously try to confidence in your abilities?
improve your strengths as well w Do the opinions of others help
as eliminate your weaknesses? you to make your decisions?
w Do you organise your time and w Are you able to deal with
activities to be more efficient people effectively?
and effective? w Do you make changes in what
w Do you have a specific plan or you are doing to make your
programme to improve your company better?
leadership capabilities? w Do you delegate authority
w Do you allow other people and responsibility to your
to help you to achieve your employees?
goals? w Do you share your success
with your employees?
21
The effective decision-maker The typical entrepreneur is required
to make some critical decisions very
The one thing worse than frequently and which are not easy
making a wrong decision, to make. The one thing worse than
is to avoid making a decision. making a wrong decision, is to avoid
making a decision. One must keep in
An entrepreneur must strongly mind that ‘decision-making’ is an art:
believe in him/herself and his/her the more you practise it, the more
ability to make good decisions. expert you will become at it.

To assess whether you have the decision-making skills required of an
entrepreneur, you may ask yourself these questions:
w How do you maintain self- w Do you give up or avoid
confidence when making an problems which appear difficult?
important decision? w How well do you adjust to
w What examples illustrate changes which occur around
your ability to make realistic you?
decisions? w What action do you take once
w What fears or weaknesses you have reached a decision?
do you have when making w How do you provide the
decisions? leadership necessary to achieve
w In what ways do you use the desired outcomes?
creativity and/or intuition w How do you use resources in
when making decisions? your environment to make
w What have you learnt from decisions?
mistakes you made in previous w In what ways do you use your
decisions? personal and professional
w In what ways do you contacts to gain information
procrastinate and delay which will help you to make a
making decisions? decision?
A results-oriented
problem-solver One effective nine-step
problem-solving
If you think you can, you can. approach includes
If you think you can’t, the following steps:
you’re right! 1. Become acquainted with the
George Bernard Shaw problem in general.
2. Determine the key facts
relating to it.
For the entrepreneur to be a 3. Identify major problem/s.
results-oriented problem-solver, 4. Identify related problems.
he/she must be able to see every 5. Search for possible causes of
aspect of a problem, as well as the problem.
understand it in its entirety. Most 6. Consider potential solutions
of the people within the company, to the problem.
involved in specific operations 7. Select the most feasible
and activities, may see parts of solution.
the problem, however it is up to 8. Implement the solution.
the entrepreneur to put all the 9. Verify that the solution is
parts together so that a complete correct.
understanding of the problem
becomes possible.
This nine-step approach is a
logical and sensible way to solve
most business problems however
it does NOT guarantee that a
particular solution will work. The
entrepreneur’s effective leadership
and decision-making skills are
needed to implement a solution
successfully.
23
Addressing the
Points to remember ‘am I good enough?’
The ten key action roles syndrome - the biggest killer
associated with effective of would-be entrepreneurs
entrepreneurs. Effective
entrepreneurs... It’s not how good you are,
1. Are individuals who make a it’s how good you want to be!
Paul Arden
significant difference.
2. Are creative and innovative.
3. Spot and exploit The thought of setting up your
opportunities. own business is very exciting
4. Find the resources required and it is also very thrilling and
to exploit opportunities. gratifying informing others that
5. Are good networkers. you have set up your own company.
6. Are determined in the face Notwithstanding this, no one has
of adversity. ever said that setting up your own
7. Manage risk. business is easy; one must find,
8. Have control of the what I call the “winning formula”
business. to be able to succeed in business!
9. Put the customer first. Unfortunately, from my ten years
10. Create Capital. of experience consulting small
businesses I can very well say
that I have seen many would-
be entrepreneurs who had this
“winning formula” potential but
whose business never got off the
ground because of their worst
enemy, i.e. themselves! Why?
Because of self-doubt!
Self-doubt is considered as one of w I will fail!

the greatest killers of innovation You might fail, it’s true but equally
and entrepreneurship. Invariably, you will not manage to build a
whoever starts a small business successful business if you don’t
is inflicted with self-doubt on try! Also, building a business is a
whether he/she is able to see it great learning experience in itself.
through! These self-doubt feelings
are normal [and at times, healthy], w I am usually pessimistic and
though one must learn how to don’t like taking risks
manage them. I do not consider myself a high
risk-taking person however in
Some common self- these last ten years I have taken
doubts among would-be several calculated risks, i.e. risks
entrepreneurs: based on sound assessment.
In business, as long as you
w I am not bright enough don’t make false assumptions
Well, sometimes you can be and leap in the dark without
too bright to succeed. At times, taking a torch with you, you are
innocence and naivety can fine. On the other hand, some
actually protect you from fear. degree of risk must be taken … if
entrepreneurship wasn’t as risky
w I am not pushy enough then we would have a lot more
If this is what you think than small businesses being set up,
may I ask you a question: Do you right?
like doing business with pushy
people, or do you prefer to deal w I know my limitations
with pleasant and reasonable Incredible though it may seem, we
people like yourself? all know what our limitations are
and we underestimate the value
of our strengths. No one is perfect
and nor is any business. That is
why there is room for you too!
25
w I am not good with numbers! strengths has been that I always
Number-crunching is always strived to retain my overhead
one of the biggest hurdles for costs very low. In fact, one of the
would-be entrepreneurs to best ways to watch your costs is
overcome! Relax! Spreadsheets to have no money to waste and
and accounting software and to take care of your pennies.
a pocket calculator render As the saying goes: “Take care
the numbers easy to work of the pennies, and the pounds
out. Always take time to work take care of themselves.” Many
it out before jumping into an wealthy people start businesses
opportunity! A little secret which that lose money!
works for me: I always carry a
pocket calculator wherever I go! For the would-be entrepreneur,
although not real, these feelings
w Competitors will eat me alive! may seem very realistic to the
I used to think this too, however extent that they stop him/her from
in fact, it resulted as quite the taking the plunge and kick off
opposite. Whilst your business is the business. As the saying goes:
small your rivals will not see you “Practice makes perfect.” Equally,
as a threat. It is once you start self-confidence is built upon
growing steadily that you must relevant knowledge and positive
keep your competitors at bay. experience – the more you learn
and practise, the better you will
w I am not rich enough get. You will make many mistakes
Looking back at my ten years along the way which is fine, as
of entrepreneurship, I sincerely long as you don’t make the same
believe that one of my biggest mistake twice!
Remember
It’s not how good you are,
it’s how good you want to be!
Other Personal Strengths Characterising

A Successful Entrepreneur
There are other just as important personal strengths which characterise a

successful entrepreneur. These include:
w A Vision commit him/herself to adopting

“Your vision of where or who the ‘code of business ethics’
you want to be is the greatest required of him/her and of the
asset you have! Without having a business. This is imperative if
goal it’s difficult to score.” [Paul you want to grow and win the
Arden, 2006]. Without a clear respect of customers, suppliers,
picture of what you want to do, competitors, intermediaries,
it will be difficult to create. The alike.
entrepreneur must try and think
about the finest details and bring w Hard Work and Perseverance
the product/service to life. Setting up one’s own business
means hard work … and also
w Determination perseverance! As the saying
You must decide whether goes: “No pain, no gain!”
you really want to set up a
business. As indicated earlier, w Cash
the entrepreneur must deal with Inevitably, your business will
the doubts before starting. Once take longer than you think to
committed, there is no turning pay you a wage. The bigger your
back. cash reserve, the longer you
can wait before drawing income
w Ethics from your new business. In the
Whether the entrepreneur first few months, you must get
decides to start a manufacturing, used to not receiving the usual
importing, consultancy or a paycheque at the end of the
service-oriented operation, month, which you used to receive
he/she must be ready to when you were employed.
27
w Fit and healthy w Flexibility
One of your major concerns will Usually when you start a
be: what happens if I get sick? business, it is just YOU. That
Unfortunately, the entrepreneur means that you must make the
cannot afford time off sick, coffee, do the filing, take out the
particularly at the early stages of trashcan, and anything that is
setting up the business. required.
w Mental health w A little bit of humour helps

Although many people around In the beginning you are
you will say that you are mad definitely going to make mistakes
to start your own business, – we all do! The ability to accept
however you must not be!! the fact that you have made a
Starting a business is stressful mistake and to also laugh it off is
and one needs to be resilient. important. What is imperative is
that you must learn quickly from
w Love and affection your mistakes, assess what you
You are going to need a shoulder did wrong and to never make the
to cry on [whether you are a same mistake twice! You cannot
man or a woman]. If you have afford it!
someone to share your thrills
and spills with, you will enjoy it w Generosity
more. When you enjoy success, invest in
those who made it possible. These
w Caution can be your family members,
Sometimes it is easy to see the your assistant, your clients …. by
opportunities and difficult to giving them your time, attention
spot the threats. You need to and positive feedback. Another
be cautious, without being too motto of mine: “Always try and
risk averse. My motto over these aim for a win-win situation!”
last ten years has always been: This way all parties involved are
“Always take calculated risks!” encouraged to give more!
29
Phase 2
Turning your idea
into a successful
business idea!
Don’t look for the next opportunity.

The ONE you have in hand IS the opportunity!
Paul Arden
Introduction
It is very unfortunate that so many and [d] anchored in a product,
new businesses, large and small, service or business that creates
are set up and are simply ‘non- or adds value for the customer or
starters’ from the word ‘go’! Why end-user. An ‘idea’ is a thought,
does this happen? What could have impression or notion, which may
gone wrong? Could this be the or may not meet the criteria of an
result of lack of good preparation opportunity.
and analysis prior to setting up the
business? Was the product/service Most entrepreneurs start their
in question not such a good idea, businesses in two ways: [a] they
after all? decide to launch a company, search
for and recognise an opportunity
For an entrepreneur to start not and then start a business or [b]
only a business, but a successful they recognise a problem or
one, it is imperative that very an opportunity gap and create
early on in the initial preparation a business to fill it. Regardless
to assess whether his/her idea is of which of these two ways
a good one or not. At this stage, entrepreneurs start a new business,
we must explain the difference it is always difficult to identify
between the terms “opportunity” a product, service or business
and “idea.” opportunity that is not merely a
different version of something
Essentially, a good entrepreneur already available.
recognises an opportunity and
turns it into a successful business. This is why many businesses are set
An ‘opportunity’ is a favourable up but only a few are successful.
set of circumstances that creates Many businesses fail not because
a need for a new product, service the entrepreneur did not work hard
or business. An ‘opportunity’ has but rather because there was no
four essential qualities: it is [a] real business opportunity in the
attractive, [b] durable, [c] timely market to begin with.
31
So, it is crucial for the entrepreneur that before getting excited
about a new business idea, he/she must assess whether the idea fills
a need and meets the criteria for an opportunity.
The steps to be taken by the entrepreneur to turn

his/her idea into a successful business idea
1. Observe trends 3. Protect your idea

The first approach to identifying If your idea is an innovation of
opportunities in the market is to some sort, it might be opportune
observe trends and study how for you to assess whether you may
they create opportunities for the ‘protect’ it by some ‘intellectual
entrepreneur to pursue. Economic property’ tool such as a patent,
factors, social factors, technological trademark or copyright, etc.
opportunities and political action
and regulatory changes are the 4. Conduct marketing research
most important trends to follow. Many entrepreneurs often make
the mistake of basing their
2. Solving a problem decisions on their own feelings,
Does your ‘idea’ solve problems? intuition and opinions. However,
Sometimes identifying opportunities to be valid, their decisions should
simply involves noticing a problem be based on the best information
and finding a way to solve it. In available. Entrepreneurs have a
your business sector and market constant need for information and
you wish to enter, do customers knowledge about their markets.
complain? Try and seek whether The would-be entrepreneur is no
there are still any unresolved different. Marketing research is a
problems in the market you wish very effective tool for the budding
to enter? Think about this: “Every entrepreneur who has an idea and
problem is a brilliantly disguised who wishes to assess its business
opportunity!” potential! Market research assists
entrepreneurs to identify new Marketing research attempts to

markets and to find new customers evaluate markets in a scientific
in existing markets. It also assists manner. However, it is also an art,
them to know the reasons for their because it involves the constantly
current products/services’ success changing attitudes of people.
or failure, and to provide ideas By collecting marketing data in
about new products/services which an orderly, objective manner,
have potential. the would-be entrepreneur will
be able to know more about the
Marketing research is the market/s he/she is interested in. No
systematic gathering, recording matter what the size of business
and analysing of information about is, whether big or small, there is
matters relating to the marketing always a need to determine the
of products/services. Marketing attitudes, opinions and beliefs of
research may assist the would-be customers.
entrepreneur to find some answers
to the following questions: Marketing research provides
timely information and data the
w What are the present and entrepreneur needs to:
potential needs of the w Reduce business risks.
customers? w Identify problems and potential
w What additional markets may be problems in the existing markets.
explored? w Identify new market
w What are the special opportunities.
characteristics of the w Obtain basic information and
customers? facts about the markets to help
w What makes the entrepreneur’s him/her to make better decisions
product/service different from and set up effective action plans.
those of competitors?
33
Large businesses have the funds The entrepreneur can conduct two
to engage marketing consultants. types of market research,
Unfortunately, the would-be a] Desk research: this entails
entrepreneur does not have conducting research on
the necessary funds to do so. publications, past surveys,
However, this does not mean that internet, official government
a budding entrepreneur cannot statistics, etc, to collect
conduct research. In fact, when secondary data.
I am approached by would-be b] Field research: This entails
entrepreneurs to conduct some conducting primary research and
marketing research for them, I collecting fresh data specifically
always encourage them to conduct for the research objective. As
the research themselves. field research is extremely
time-consuming and expensive
When the would-be entrepreneur to conduct, the entrepreneur
conducts the field work him/herself, might need to opt for conducting
it is a learning experience for qualitative market research by
him/her, in that while researching way of conducting focus group
the market, he/she is getting sessions, conducting few in-
more acquainted with the market depth interviews with potential
forces at play, he/she will learn customers, etc.
more about the attitudes, opinions,
tastes and purchasing behaviour Conducting quantitative research
of potential customers, he/she will is not an option for the would-be
also learn more about competitors, entrepreneur as this proves too
their strategies, weaknesses and difficult to conduct, too expensive
strengths, etc. and time-consuming.

Evaluating the potential success of a new product/service is a difficult
but necessary activity. The following questions will assist you to
identify market opportunities for a particular product/service:
w Is the product/service in a w To what extent is the

growth industry? entrepreneur dependent on
w Will the future demand for suppliers and other related
the product/service increase, businesses?
remain stable or decrease? w What are the specific
w What is the nature of disadvantages of the new
competition for the product/ product/service?
service? w In what ways will the
w Does the entrepreneur have product/service be similar to
sufficient finances to meet and different from those of
the expenses of introducing competitors?
the new product/service for at w To what extent will marketing
least the first year? contribute towards the success
of the product?
35
5. Conduct a feasibility analysis b] Conduct a ‘product/service’
Apart from conducting marketing feasibility analysis
research, it is also essential A product/service feasibility
that the entrepreneur conducts analysis is an assessment of the
a feasibility analysis of his/her overall appeal of your product/
business idea to determine whether service being proposed. This
it is viable or not, i.e. to assess feasibility analysis involves
whether the business idea is conducting two primary tests,
worth pursuing before spending namely, ‘concept testing’ and
resources on it. As painful as it may ‘usability testing.’
be, if the feasibility analysis shows
that the business idea is deemed i. The ‘concept test’ involves
unworkable, it should be dropped a representation of the
completely or rethought afresh. product/service to prospective
users to gauge customer
Conducting a feasibility analysis of interest, desirability and
your business idea will comprise purchase intent. The three
the following steps: primary purposes for concept
a] Draw up a ‘concept statement’ testing is to [a] validate
for your business idea. the underlying premises
This concept statement is a behind a product or service
preliminary description of idea, i.e. to test this idea
your prospective business. It the entrepreneur must ask
should include a description prospective customers what
of the product/service being they think about it, [b] to help
offered, your intended target develop the idea rather than
market segment/s, the benefits just test it and [c] to estimate
of your product/service and the potential market share
a description of how your the potential product/service
product/service will be sold and might command.
distributed.
ii. Usability Testing is a power of buyers and the threat

method by which users of a of substitute products. These
product/service are asked forces, better known as Michael
to perform certain tasks Porter’s five competitive
in order to measure the forces [Michael Porter, 1980]
product/service’s ease of use determine the average rate
and the user’s perception of return for the companies
of and satisfaction with the engaged in an industry.
experience.
d] Conduct an ‘organisational’
c] Conduct an ‘industry/market’ feasibility analysis
feasibility analysis This organisational analysis is
An industry/market feasibility conducted to determine whether
analysis is an assessment of the the entrepreneur has sufficient
overall appeal of the market management expertise and
for the product/service being organisational competence and
proposed. There are three also whether the potential new
primary issues that a proposed venture has sufficient resources
business should consider here: to move forward to successfully
develop the ‘product/service’ idea.
i. The industry attractiveness
The entrepreneur must e] Conduct a ‘financial’
assess the profitability and feasibility analysis
growth of the industry he/ This ‘financial’ analysis is a
she intends entering into. preliminary financial analysis of
The competitive forces that whether a business idea is prudent
determine an industry’s or not. The most important issues
growth and profitability are to be considered here are [a] the
the threat of new entrants capital requirements to produce
in the industry, the rivalry the product/service idea, [b] the
among existing firms, financial rate of return and [c]
the bargaining power of the overall attractiveness of the
suppliers, the bargaining investment per se.
37
It might be opportune for a up the whole business venture and
would-be entrepreneur to seek launching their product/service,
the assistance of a professional only to find that their business is a
consultant when conducting this complete flop!
feasibility analysis.
Once this preliminary evaluation of
I always reiterate with my ‘would- the business idea is conducted and
be entrepreneur’ clients, who are the above feasibility analyses show
assessing whether their business that the idea is worth pursuing,
idea is worth pursuing or not that then this leads the entrepreneur
it is better to spend a few pennies into the next important stage
at the start and proceed with the of setting up his/her successful
business idea if found viable rather business… that of writing a
than spend many pounds in setting business plan for his/her idea!
Points to remember
Characteristics of a successful product-service idea! A successful idea
should have most, if not all, of the following characteristics:
1. This new idea [product/ 4. The results or benefits of

service] should have a the idea must be easily
relative advantage over communicable to customers
existing products/services. and potential users.
For example, your product/
service offers your customer 5. It would be helpful if customers
something that the existing and potential users can try out
products/services do not. this idea without incurring a
large risk. e.g. the distribution
2. This idea or the advantage it of samples, or trial users,
offers over existing products/ would allow potential buyers to
services must be compatible use this new product/service
with existing attitudes and without risking a purchase.
beliefs of customers, in
that it should not require a 6. This idea [product/service]
drastic change in the buyer’s must be readily available
behaviour. for purchase once the buyer
decides to make a purchase.
3. The idea should NOT be so
complex that the buyer has a 7. The buyer must also believe
difficult time understanding that this new idea [product/
how to use it. service] satisfies one of
his/her needs by giving some
immediate benefit.
39
Using outside resources
Entrepreneurs have limited specialist, e.g., an IT consultant, I
human resources, limited time always use the following procedure:
and limited money, yet their need a] First, I ask around amongst
for information and advice is colleagues, friends and fellow
continuous be it financial, taxation, entrepreneurs, to see if they can
management, legal, marketing, recommend the names of a few
IT, insurance, production, etc. In good consultants.
such cases, entrepreneurs must b] Once I short-list two or three
resort to outside help. How? By prospective consultants, I then
using the services of professional meet up with them separately.
consultants, the entrepreneur may c] I then ask each short-listed
focus on his/her core business prospective consultant the
and on what he/she does best and following questions:
at the same time, obtain timely i. How long have you been
and professional advice on other practising?
matters. Using outside resources ii. What are your areas of
can assist the entrepreneur to specialisation?
solve existing problems as well as iii. How have you helped
to avoid potential problems. entrepreneurs in a similar
business with similar problems
The crucial question arises “how to mine?
does one select the right outside iv. Can you mention the name
resources?” In my own business, of some local businesses you
whenever I need some professional have assisted to date?
assistance, say, I need a new legal v. What are your professional
advisor, accountant, insurance fees?
advisor or even some technical
There is no way to be sure that Engaging business consultants

you have selected the ‘right’
professional, advisor or consultant Business consultants may range
to serve your needs. However, from management consultants,
what I do is first I appoint the marketing consultants, marketing
professional on a project-basis, communications consultants
then if I feel that the professional [formerly known as advertising
has done a good job on the consultants], IT consultants,
project, I will start working almost production consultants, trainers to
exclusively with that professional. health and safety consultants, etc.
However, I have learnt not to However, some entrepreneurs may
enter into exclusive contractual be reluctant to engage business
agreements with professionals consultants largely because of
unless I have worked with them the belief that consultant fees are
for quite some time and they have too high or because they fear that
invariably proven to offer a timely, consultants would give confidential
reasonably-priced and useful information about their business
advice which has assisted me in to other people. Another reason
improving my business venture. could be due to a reluctance to
gather information needed for the
consultant to do the job properly.
Sadly, for these and other reasons,

many entrepreneurs are not
aware of the costs or benefits of
business consultants. Business
consultants should be viewed as
another resource. Like all typical
entrepreneurs, in my first year of
operation, I tried to do everything
myself under the presumptuous
standpoint that ‘no one does
it better than me’ and that ‘if
41
you want something to be done services advisors or consultants,
right, do it yourself!’ On realising was to engage relatively young
how wrong I was, after a mere professionals who run their
18 months of operation I had own consultancy firm and are
engaged a financial advisor and tax entrepreneurs themselves.
consultant, an insurance advisor, an Invariably, I found that these are
IT specialist and a legal advisor for more sensitive to my company’s
my business venture. requirements and limitations, given
that they themselves manage
Another selection criterion which their own small operation and will
worked for me whether selecting empathize more with my position.
and engaging professional
In the light of the above discussion, before you select a business

consultant or advisor, you must ensure that:
w You know exactly what specific w When you are considering a

tasks you want the consultant large consulting firm, ensure
to accomplish. that you talk to the persons
w Gather information on the who will actually be assigned to
services offered and the work with you.
general reputation of various w Ask each consultant to
consultants from your prepare a written proposal
business acquaintances. that indicates the work tasks
w Ask each potential consultant to be undertaken [the project
to provide you with current deliverables], how these
references. tasks will be accomplished,
w Know the specific areas the proposed deadline/s and
of business in which each also an estimate of the total
consultant is especially cost and terms of payment to
competent. complete the project.
Using services offered by public sector agencies/departments

Government Agencies/ by local entrepreneurs comprised
Departments the following:
w More financial assistance;
During my ten years of operation, w More training assistance;
I have seen a concerted attempt w Assistance to obtain larger
from the part of the Malta office/factory space;
Government to promote and w More marketing and
assist local entrepreneurs via management assistance;
its Government agencies and w Various other specialised
departments, e.g. the Malta consultancy services;
Enterprise [ME], the Euro- w Less red tape/bureaucracy from
Information Centre [EIC], the Government departments.
Korradino Business Incubation
Centre [KBIC], the ex-Institute For those would-be entrepreneurs
for the Promotion of Small and who are interested in setting up
Medium-sized Enterprises [IPSE], their own company, I suggest
Government’s Small Business and that they approach and schedule
Crafts Directorate, the Employment meetings with representatives
and Training Corporation [ETC], of these public sector entities
etc. However, notwithstanding and enquire on what services,
this, local entrepreneurs still schemes, incentives they may avail
believe that there is still much themselves of. Other private sector
room for improvement vis-à-vis entities, like the local commercial
Government’s small business banks, the Malta Chamber of
assistance strategy. In fact, in Commerce and Enterprise
the qualitative research survey I [MCOC], the General Retailers and
conducted with local entrepreneurs Traders’ Union [GRTU] offer useful
in 2006, [Entrepreneurship Base assistance/advice to prospective
Document – Malta, ME-EIC, 2006] the entrepreneurs and hence these
major assistance/support schemes/ entities are definitely worth
incentives requested from the contacting.
43
Phase 3
Writing a business plan
for your successful idea
Failing to plan
means planning to fail!
Strategic management The search for a

and developing competitive advantage
a business plan
There is no traffic jam
In today’s highly competitive and on the extra mile.
fierce external environment, the
would-be entrepreneur needs a The goal of developing a strategic
powerful weapon to cope with plan is to create a ‘competitive
such a hostile environment. This advantage’ for the entrepreneur.
important powerful weapon This competitive advantage is the
is the process of ‘strategic aggregation of factors that sets
management.’ a small business apart from its
competitors and gives it a unique
Strategic management involves the position in the market.
development of a business plan,
which is like a ‘game plan’ or ‘road Every entrepreneur or small
map’ to guide the entrepreneur business must establish a plan
as he/she strives to accomplish for creating a unique image in the
his/her business venture’s vision, minds of its customers. NO business
mission, goals and objectives and can be everything to everyone.
to keep him/her from straying off In fact, one of the biggest pitfalls
the desired course. many entrepreneurs stumble into
is failing to differentiate their
business from the rest of the
competitors within the industry.
45
Strategic management can increase The strategic management
an entrepreneur’s effectiveness, procedure for a small business
however small businesses must must include the following features:
have a procedure designed to
meet their needs and their small w Use a relatively short planning
company’s special characteristics. horizon – two years or less for
It is a mistake to apply a big most small companies.
company’s strategic development w Be informal and not overly
techniques to a small business structured.
because a small business is NOT w Encourage the participation of
a little big business. Because of employees and ‘trusted’ outside
their size and their particular parties to improve the reliability
characteristics, which are and creativity of the resulting
typically a flexible managerial business plan.
style, an informal organisational w Focus on the customer. Rather
structure and adaptability to than building your business
change, small businesses need a strategies around your
different approach to the strategic competitors’ actions, focus
management process. your strategies around your
customers.
w Do not begin with setting
objectives because extensive
objective setting early
on may interfere with the
creative process of strategic
management.
w Focus on strategic thinking and
not just planning, by linking
long-term goals to day-to-day
operations. Strategic thinking
encourages creativity, innovation
and employee involvement in the
entire process.
Writing the business plan It gives the entrepreneur and

his/her employees a sense of
Strategic planning is not a result direction and as more team
or an outcome but an ongoing members are committed to
process. To be useful, the making the plan work, it takes on
development of a business plan a special meaning.
must become part of the very
foundation of the entrepreneur’s b] The second function of the
business venture. There is no business plan is to attract
substitute for a well-prepared lenders and investors. A business
business plan, and there are no plan must prove to potential
shortcuts to creating one! The lenders and investors that the
business plan may be the most entrepreneur’s business venture
important business document that will be able to repay loans and
he/she will ever prepare for his/her produce an attractive rate of
business venture and it will also return.
probably be the most difficult.
Although the elements comprised in
A business plan a business plan are standard, every
has two essential functions: business plan is unique and must
a] First and more important, it be tailor-made to the individual
guides the company’s operations entrepreneur’s business idea and
by charting its future course and industry environment. If this is a
devising a strategy for following first attempt at writing a business
it. As is indicated below, the plan plan, it might be opportune for
provides a set of tools which the the would-be entrepreneur to
entrepreneur must use, namely, seek the advice of professionals
a mission statement, goals, with experience in this process.
objectives, budgets, financial Although building a business plan
forecasts, target markets, etc does not guarantee success, it does
to assist him/her to lead the raise an entrepreneur’s chances of
business venture successfully. succeeding in business.
47
The Entrepreneur’s business plan should include
the following sections:
1. Executive Summary first in order to give the business

The Executive Summary is a short venture a sense of direction.
overview of the entire business Without a concise, meaningful
plan: it provides a busy reader with mission statement, an entrepreneur
everything that needs to be known risks wandering aimlessly in the
about the new venture’s distinctive marketplace, with no idea of
nature. It must capture the reader’s where to go or how to get there!
attention. If it misses the mark, The mission statement ‘anchors’
the chances of the remainder of a company in reality and sets the
the plan being read are minimal. A tone for the entire company.
well-developed, coherent summary,
including the financial proposal, 3. The Company History
establishes a favourable first This section involves writing a
impression of the entrepreneur and brief summary, highlighting the
the business and can go a long way significant financial and operational
towards obtaining financing. events of the business since its
inception. This section should
Although the executive summary also describe when and why the
appears at the beginning of the company was formed, how it has
business plan, it should be written evolved over time and what the
after the plan is finished. Only then entrepreneur envisions for the
can an accurate overview of the future.
plan be written.
4. The Business
2. The Mission Statement and Industry Profile
The Mission Statement addresses This section should begin with
the first question of any business a statement of the company’s
venture: “What business am I business goals and a narrower
in?” Establishing the purpose of definition of its immediate
the business in writing must come objectives. Business Goals are
broad, long-range statements for a better understanding of the

of what the entrepreneur plans viability of the new product/service.
to achieve in the future. They
express the business venture’s In this section, the entrepreneur
raison d’etre, that guide its overallmust also turn his/her attention
direction, i.e. they address the to assessing his/her company’s
question: “Why am I in business?” strengths and weaknesses.
Building a successful strategy
Business objectives, on the demands a business to
other hand, are short-term, capitalise on its strengths and
specific performance objects that also overcome or compensate
are attainable, measurable and for its weaknesses. Company
controllable. Every objective should strengths are positive factors
reflect some general business over which the entrepreneur
goal and include a technique for has full control and that he/she
measuring progress towards its can use to accomplish his/her
accomplishment. To be meaningful, mission, goals and objectives,
an objective must have a timeframe while company weaknesses are
for achievement. Both goals and negative factors [which are also
objectives should relate to the controllable factors] that inhibit
company’s basic mission. the accomplishment of a company’s
mission, goals and objectives.
This section should also provide Typical weaknesses may be: lack
the reader with an overview of of capital, a shortage of skilled
the industry and the market workers, an inferior location site,
segment in which the new venture etc.
will operate. Industry data such as
market size, growth trends and the The entrepreneur must also
relative economic and competitive strive to identify any market
strength of the major companies opportunities or market threats
in the industry all set the stage that might have a significant
49
impact on the business. Market his/her view of the strategy that
opportunities are, in fact, positive is needed to beat the competition.
forces, over which the entrepreneur In the previous section the
has no control, but that the firm entrepreneur defined WHERE
can still exploit to accomplish its he wants to take the business
mission, goal and objectives. On by establishing the goals and
the other hand, market threats objectives. This section will address
are negative forces, over which the HOW to get there, i.e. the business
entrepreneur has no control, but strategy. How can this be done?
that may inhibit his/her company’s There are a number of management
ability to achieve its mission, tools available for the entrepreneur
goals and objectives. Although to assist him/her to develop an
the entrepreneur cannot control effective business strategy:
the opportunities and threats
emanating from the market, it a] Identify the Company’s
is essential that he/she tries, as Core Competencies
much as possible, to capitalise on In this section of the business
the positive market opportunities plan, the entrepreneur must
and also shield the business from explain how he/she plans to
market threats. gain a sustainable competitive
edge [which we explained on
A very effective management tool page 44] in the market and what
which assists the entrepreneur sets the business apart from the
in conducting this four-factor competition. The entrepreneur
assessment is called the SWOT should comment on how he/she
Analysis tool. The acronym ‘SWOT’ plans to achieve the business
stands for strengths, weaknesses, goals and objectives in the face
opportunities and threats. of competition and government
regulation and should identify
5. Business Strategy the image that the business
This section is a very important will try to project. Here, the
part of the business plan because entrepreneur must define his/her
here the entrepreneur will indicate company’s core competencies.
Core competencies are a unique b] Identify the Key Factors for

set of lasting capabilities that Success in the Business
a company develops in key [better known as the
operational areas, such as quality, Key Success Factors].
service, innovation, flexibility, Key success factors are
responsiveness, etc which allow it relationships between a
to vault past competitors. controllable variable and a
critical factor influencing a
Normally, a company is likely to company’s ability to compete in
build core competencies in no the market. Let’s give a typical
more than four or five areas. example: everyone agrees
These core competencies become that the key success factors
the nucleus of a company’s of a typical restaurant include:
competitive advantage but to maintaining the food quality,
be effective these competencies cleanliness, consistency, a good
should be difficult for competitors friendly and attentive service by
to copy and they must provide a well trained waiting personnel,
customers with some kind of a right location, and a trained,
perceived benefit. The small dependable restaurant manager.
size of the entrepreneur’s Restaurants lacking these key
business venture may be used success factors are not likely to
as an ‘advantage’ because survive but those restauranters
this smallness will allow him/ who build their businesses
her to do things which larger with these factors in mind
competitors cannot do, e.g. will prosper! So it is essential
speed of delivery, closeness to that when an entrepreneur is
customers, ability to innovate entering a new industry sector,
fast, etc. The key to success of he/she must identify the key
these core competencies is to success factors of this industry
concentrate them on providing and then build a strategy on the
superior service and value for the foundation of these factors.
entrepreneur’s target customers.
51
c] Formulating Strategic Options i. A cost leadership strategy:
and Selecting an Appropriate The entrepreneur pursuing
Business Strategy a cost leadership strategy
By now, the entrepreneur should strives to be the lowest-
have a clear picture of what his/ cost producer relative to its
her business does best and what competitors in the industry.
its competitive advantages are. Low-cost leaders have a
Similarly, he/she should know its competitive advantage in
business venture’s weaknesses reaching buyers whose
and limitations as well as those primary purchase criterion is
of its competitors. This next ‘price’ and these companies
step involves evaluating the have the power to set the
strategic options available industry’s price floor.
and then preparing a business
strategy designed to achieve ii. A differentiation strategy:
the business’s goals and The entrepreneur pursuing
objectives. a differentiation strategy
seeks to build customer
The entrepreneur has largely loyalty by positioning its
three strategic options to products/services in a unique
choose from. In his classic or different way. There
book, Competitive Strategy, are many ways to create
1980, Michael Porter defines a differentiation strategy,
these three strategies, as but the key concept is to be
indicated below. Which strategy special at something that is
to select will largely depend important for the customer. In
on the entrepreneur’s [a] core other words, the entrepreneur
competencies and [b] the key must strive to be better
success factors of the industry than his/her competitors at
sector he/she is operating in. something that customers
value, because not every
product/service difference is a
differentiator!
iii. A Focus Strategy: is for the entrepreneur to select

A focus strategy recognises one or more market segments,
that not all markets are identify the customers’ special
homogeneous [the same]. needs, wants and interests and
In fact, in a given market, approach them with a product/
there are a number of market service designed to excel in
segments, each segment meeting these needs, wants
having different needs, wants and interests. A focus strategy
and characteristics. The builds on differences among
principal idea of this strategy market segments.
The strategic options available to the entrepreneur
Competitive Advantage
Uniqueness perceived
Source: Porter M. Competitive Strategy: Techniques for Analysing Industries and Competitors (Free Press, 1980)
Low-cost position
by the customers
Industry
Differentation Low-cost
Target Market
Niche
Differentation Cost Focus

Focus
53
d. Identify a Market Segmentation Once the entrepreneur
and Product Positioning has identified the market
Strategy segments he/she wants to
Here the entrepreneur must target, he/she must now
segment the whole market and position its product offer
identify the market segment to these market segments
or segments he/she would like in a way that the latter
to meet the requirements of. perceive the entrepreneur’s
This requires the entrepreneur product/service in a desired
to know who his/her customers image for the business and
are, their characteristics, their its products/services. So
likes and dislikes, etc. To segment product positioning involves
a market successfully, the the entrepreneur influencing
entrepreneur must first identify the customers’ perceptions
the characteristics of two or more to create the desired image
groups of customers with similar for the business and its
needs and wants. The key is to products/services. Proper
develop a basis for segmenting product positioning gives the
the whole market, e.g., on benefits small business [entrepreneur]
sought, product usage, brand a way of setting itself apart
preferences, purchase patterns, from the competition, which
etc, and then use this basis to may be its foundation for
identify the various submarkets developing a competitive
[market segments] to enter. advantage. A typical way how
The entrepreneur must then an entrepreneur may establish
verify that the selected market a competitive advantage is to
segments are large enough and rely on a ‘natural’ advantage of
have enough purchasing power to being a small business, e.g. a
generate a profit for the company. small firm’s ability to respond
He must then assess whether quickly to the target markets’
these market segments are needs; its ability to remain
accessible, i.e. that they may be flexible and willing to change
reached. to reach the market segment in
question, its special knowledge to compete in, will depend on

of a particular product/service, the competitive advantages
etc. the company enjoys in each
market segment. In some
The business strategy the cases, an entrepreneur may
entrepreneur will select, the be implementing different
market segments he/she decides strategies across a number of
market segments.

In a nutshell, the process of selecting a target market and positioning
strategy can be summarised in three basic questions:
a] When segmenting the market, c] When developing a unique
the entrepreneur must ask: positioning strategy, the
What groups of customers in entrepreneur must ask: What
my market are similar enough position will my company or
that the same product/service product/service occupy in the
will appeal to all of them? minds of my customers and
potential customers that will
b] When selecting a target differentiate it from all my
market, the entrepreneur must competitors?
ask: Which specific group of
customers do I want to target?
55
6. Translating the Business now turn the business plan into
Strategy Plan into distinct a real working document instead
Action Plans of letting it sit on an office shelf
No strategic plan is complete collecting dust!
until it is put into action! The
entrepreneur must now convert At this stage, the entrepreneur
his/her firm’s business strategy will develop three essential Action
plan into distinct operations Plans:
plans that will guide the company
on a daily basis and become a w The Marketing Plan
visible and active part of the w The Operations Plan
business. These action plans will w The Financial Plan.
The marketing plan

No Customers, No Business!
Don’t wait for customers to come to you, go out and find them!
As we have already discussed, will position its product/service in a

the first steps in developing an unique position as perceived by its
effective marketing strategy are: customers or potential customers
[a] conduct marketing research, that will differentiate it from all of
[b] segment the market into its competitors.
distinct market segments, [c]
identify the market segments the Having done this, the entrepreneur
entrepreneur wishes to target and must now plan the details of his/her
[d] develop an effective product company’s marketing mix. The
positioning strategy. This means it firm’s company mix is the set of
controllable, tactical marketing ii. The Price

tools that it uses to produce the The entrepreneur must decide on
response it wants from each of its the price of the product/service.
target markets. Every entrepreneur Given the small size of the company
has 7 tools in his/her marketing of a would-be entrepreneur, the
tool box and these are usually latter will normally be a price-taker
referred to as the 7 Ps: the product, and not a price-maker, which means
price, promotion, place, people, that he/she must accept the price
physical evidence and process. levels as dictated by the market in
question.
i. The Product
The product/service is the However, from his/her end, when
entrepreneur’s core product. The setting the price of the product/
entrepreneur must decide on the service, the entrepreneur must
main characteristics of his/her keep in mind that pricing plays
product/service, namely: a critical role in the company’s
w The quality level of the product/ overall strategy and the pricing
service. strategy must be compatible with
w The features of the product/ the company’s total business [and
service. marketing] plan. The entrepreneur
w The design of the product/ must also keep the following issues
service. in mind when establishing a price
w A brand name for the new for the product/service:
product/service. w Assess the customer’s perceived
w The packaging for the product/ price value for the product/
service. service in question.
w The after-sales service w Assess the actual demand for the
w The warranty [where applicable]. product/service.
w Calculate the total cost of
producing the product/service,
i.e. the variable costs and
overhead costs.
57
w Calculate the break-even point of actions of the owner – the
the company. entrepreneur! This is why the
w Assess the pricing of competing new entrepreneur must look
products/services. professional and equip him/herself
w Research the prices and with professionally-produced
discounts already available on business cards, office stationery,
the market. etc and also produce a corporate
w Keep in mind that the ‘price’ is profile.
only one of the many attributes
of the product/service and hence However, the entrepreneur may
he/she must assess the other still make effective use of other
elements of the marketing mix promotional tools:
and that of competition, e.g. the w Word-of-mouth promotion [most
product quality, delivery times, effective promotional tool]
etc. which is triggered by satisfied
w Not to think that the new customers who would have used
product/service has to be the the entrepreneur’s product/
cheapest on the market. service.
w A professionally drawn up
website of the company.
iii. Promotion w Sales promotion, e.g. some
Given the limited financial special offers to increase sales,
resources of the would-be demonstrations, free samples,
entrepreneur, more often than not, special introductory offers, etc.
at the start of the business, the w Participate in a local specialised
entrepreneur is the key person in trade fair/exhibition.
any promotion effort and he/she w Public relations, e.g. press
has the main responsibility for releases, advertorials, etc.
developing position relationships w At a later stage, the
between the business and the entrepreneur might even
customers. The reputation of a consider some mass media
small business is usually directly advertising, e.g. advertising
related to the personality and on local radio, newspapers, TV,
billboards, bus advertising, etc. the entrepreneur must decide the

This promotional tool, although location of the outlet, largely based
very effective, is also relatively on the following:
expensive. w Is the location close to the target
customers?
w Is the location visible and easy to
iv. Place [distribution] find by the customers?
The entrepreneur must decide w Is there a lot of road traffic to
whether he/she wants to sell reach the site?
the product/service directly w Is there adequate parking?
to consumers or through w Is there room for future
intermediaries [e.g. wholesalers expansion?
and retailers]. If the entrepreneur w What is the reputation of the
is interested in opening a new retail site?
outlet, e.g a boutique, a hair and w Where are competitors’ retail
beauty salon, an antiques shop, outlets located?
etc, the choice of the business
location for the retail outlet itself
has to be made very carefully. To v. People, Physical Evidence
increase the chances of success, and Process
considerable thought should be People, physical evidence and
given to the problem of selecting process are very important tools
the right location of the business. A for the entrepreneur producing
good location may allow a not-so- a ‘service’ product. ‘People’ refer
good business to survive, whereas to the entrepreneur’s employees
a bad location may result in failure who will be interfacing with the
for even the best planned business. customers. ‘Physical evidence’
refers to the entrepreneur’s efforts
The relative importance of the to “tangibilise” the intangible
location differs according to the aspects of the service product, e.g.
nature of the business of the produce promotional brochures,
retail outlet, however in general, promotional CDs, etc. And the last
59
P stands for ‘Process.’ This tool hair, then the entrepreneur will try
assists the entrepreneur to, as and standardize the hair-washing
much as possible, standardise the process of all three employees
process of his service product, e.g. so that the same quality service
if the hair-styling salon has three is given every time, irrespective
employees who wash customers’ of which employee is washing the
customer’s hair.

Many entrepreneurs start their business by working from home. I was,
in fact, one of these as for the first 18 months, I operated by business
from home. Although at first this may be a most suitable first base
for the starting business, one must ask him/herself these questions
to prevent expensive mistakes, whether emanating from a legal or
practical matter.
Issue to address Check with
Planning permission & building regulations MEPA
Mortgage Bank
Insurance Insurance advisor
Tax consequences Accountant
Business plan legislation MEPA and legal advisor
Disturbance Neighbours
Effect on family life and social life Family
Your own work efficiency at home Yourself
The operations plan
The Operations plan deals with the The operations plan should also
day-to-day operations of the include an explanation of the firm’s
company. For example, in the case quality control procedures. The
of a manufacturing company, this plan should give an overview of
section of the plan should begin by what monitoring or inspection
describing how the firm plans to processes will be built into the
manufacture its first product. The manufacturing process to ensure
reader will want to know how much high quality. Customer-support
of the manufacturing the company strategies should then be
will be doing itself, and how much, discussed. If the company is obliged
if any, will be sub-contracted out to to provide after-sales support to
others. its customers through a call centre
or other means, these obligations
The location of the manufacturing should also be clearly described.
facility should also be specified
in the operations plan. Another For product-manufacturing
important aspect is how much companies, the operations plan
inventory will need to be carried must also indicate the risks and
in stock in order to meet the regulations pertaining to the
customer demand. If the firm is operations of the firm, such as non-
a service organisation, similar routine regulations regarding waste
information should be provided. disposal and worker safety.
The operations plan should also

include a description of the
network of suppliers, business
partners and service providers
that will be necessary to build the
product or produce the service the
firm will sell.
61
The financial plan
The financial plan must

demonstrate the financial viability Questions to ask yourself
of the business.
A properly managed company
Most entrepreneurs, whether they [large or small] must also
are at start-up stage or have been stay on top of the following
in business for several years, have questions:
four main financial objectives: w How are we doing? Are we
making or losing money?
w Profitability - This refers to w How much cash do we have in
a company’s ability to make a hand?
profit. w Do we have enough cash
w Liquidity - This refers to a to meet our short-term
company’s ability to meet its obligations?
short-term obligations. w How efficiently are we
w Efficiency – This refers to how utilising our assets?
productively a company is w How does our growth and net
utilizing its assets. profits compare to those of
w Stability – This refers to the our industry peers?
overall health of the financial w Where will the funds we need
structure of the company, for capital improvements
particularly as it relates to its come from?
debt-to-equity ratio. w Are there ways we can
partner with other firms to
The financial plan should begin share risk and reduce the
with an explanation of the funding amount of cash we need?
that will be needed by the business w Overall, are we in good shape
during the next two to three years financially?
along with an explanation of
how the funds will be used. This
information is called a sources and two to three years of projected

uses of fund statement. income statements, balance sheets
The next portion of this section and statements of cash flows. It
should include the financial is also crucial that an assumption
projections, which are intended to sheet precedes the projections.
further demonstrate the financial This assumption sheet explains the
viability of the business. The basis for the numbers included in
financial projects should include the projected financial statements.
Points to remember
The process of financial management involves the following 4 steps.
A start-up company will obviously start at Step 2 as it would not have
any historic financial statements.
Step 1 – The Preparation of Historic Financial Statements

w Income statement
w Balance sheet
w Statement of cash flows
Step 2 – Preparation of Forecasts
w Income
w Expenses
w Capital Expenditure
Step 3 – Preparation of Projected Financial Statements
w Income statement
w Balance sheet
w Statement of cash flows
Step 4 – Ongoing Analysis of Financial Results
w Ratio analysis
w Measuring results vs. plans
w Measuring results vs. industry norms.
63
7. Establish Accurate Controls Accounting, production, sales,
for The Business Plan inventory and other operating
Good planning includes controls records are primary sources of
necessary to implement the plan data the entrepreneur can use for
successfully. Although long-term controlling activities.
plans may be changed, they provide
direction for all business activities. 8. Critical Risks Factors
Although a variety of potential
Planning without control has little risks may exist, e.g. management
operational value, and so a sound risks, marketing risks, operating
planning programme requires a risks, financial risks, etc, the
practical control process. The entrepreneur must tailor this
proposed actions and activities section to depict its truly critical
indicated in the business plan risks. By highlighting these critical
become the standards against risks, the entrepreneur is showing
which actual performance is that he/she understands and is fully
measured. aware of the critical risks facing the
business.
Controlling projects and keeping
them on schedule means that The critical risks a new business
the entrepreneur must identify may face depend largely on
and track key performance its industry and its particular
indicators. The source of these situation. At this stage, the
indicators is the operating data entrepreneur must also highlight
from the company’s normal the contingency plan or actions,
business activity; these are the which he/she might need to take
guideposts for detecting deviations if the business plan does not
from established standards. materialise.
Points to remember
The ten important questions a business plan should answer:
1. Is the business just an idea, 6. How will the company’s

or is it a business opportunity competitors react to its
with real potential? entrance into its markets?
2. Does the business venture 7. Is the entrepreneur skilled and
have an exciting and sensible up to the task of launching the
business model? Will other new business venture?
firms be able to copy its 8. Is the business venture
business model or will the firm organised in an appropriate
be able to defend its position manner? Are its strategy and
through patents, copyrights business practices legal and
or some other intellectual ethical?
property means? 9. Are the financial projections
3. Is the product/service viable? realistic, and do they project
Does it add significant value to a bright future for the firm?
the customer? Has a feasibility What rate of return can
analysis been completed? If so, investors expect?
what are the results? 10. What are the critical risks
4. Is the industry in which the surrounding the business, and
product/service will compete does the entrepreneur have
growing, stable or declining? contingency plans in place if
5. Does the business venture risks become actual problems?
have a well-defined target
market?
65
Setting up my own
successful business
- a re-cap!
Get it right, first time!

Now that you have read this I have drawn up two checklists
manual, I have two questions to ask to assess [a] your personal
you: preparation and [b] the initial
1. Do you feel personally prepared preparation for your business
to take the plunge and venture. If you answer ‘yes’ to
become a promising, budding these checklist questions then this
entrepreneur? means you have completed the
2. Do you feel you have conducted first essential stage of setting up a
a good initial preparation for business ...successfully!
your new business?
Checklist 1 - Personal preparation

Are you personally prepared to become a promising entrepreneur?
1. Are your physical health and 7. Can you accept a reduced

age compatible with your income, at least, at the
proposed project? beginning?
2. Can you cope mentally 8. Will you work without the
with the new stresses and usual financial security that a
demands? regular employee has?
3. Do you welcome calculated 9. Are you self-confident in
risks and responsibility? the face of adversity and
4. Have you demonstrated rejection?
management ability? 10. Do you know how many
5. Do you have the quality of hours per week you wish to
endurance? work?
6. Can you work alone for a 11. Do you know how supportive
sustained period of time? your family members will be?
continues on next page...

67
from previous page...
12. Have you discussed the business, and by when?

project with your family 19. Will this project affect your
members? personality?
13. Do you appreciate what 20. Do you know what your
effect the project can have attitude is towards: long
on your family life and your working hours, selling, asking
family home? for money, asking for help,
14. Have you identified your power, success and above all,
personal skills? failure?
15. Are you knowledgeable 21. Can you take decisions?
enough on the business 22. Do you get on well with
sector you are going to enter people?
into? 23. Have you realistically listed
16. Can you identify what your your personal attributes and
business project will need shortcomings?
from you? 24. Have you discussed these
17. Do you know why you want to attributes and shortcomings
start the project? with an honest and respected
18. Have you set out truthfully friend?
what you want out of the
Checklist 2 - Initial preparation for business

Have you conducted a good initial preparation for your new business?
1. Do you have a clear idea of 5. Have you checked the moral,

the business opportunity now legal and environmental
facing you? objections to your project?
2. Will your product sell? 6. Do you know why your
3. Do you accurately product/service is better
understand your intended than those of competitors?
product/service? 7. Can you explain this clearly
4. Have you looked at the to customers?
market for it and can answer 8. Does it do what you say it
the following questions: does? Has it been tested?
a] What do people buy? 9. Will you continue to improve
b] When do they buy it? your product?
c] Where do they buy it? 10. Have you sold your product/
d] Who does the buying? service yet?
e] Why should they choose 11. Are you familiar with what
your product/service? customers want, in terms
f] How will you set about of delivery and after-sales
selling your product/ service requirements, quality
service? levels and discount levels?
g] How big is the market for 12. Do you know who your
your product? competitors are?
i] Do you think this market 13. Do you know what they will
will grow or contract? do if you start doing well?
j] Once you start operating, 14. Can you keep up to date with
what share of the market changing techniques and
are you aiming at? technology?
continues on next page...
69
from previous page...
15. Have you spoken to any 21. Do your business partners/

potential customers about shareholders understand your
the market? project?
16. Do you know what your 22. Do you know how much it
product will cost to make? will cost to promote your
17. Have you calculated your product?
overhead costs, including 23. Do you have:
selling and distribution? a] A legal advisor?
18. Have you attempted to b] An accountant or financial
produce a simple cash flow advisor?
projection? c] A bank manager?
19. At this stage do you have an d] A management/marketing
idea of: consultant?
a] How much cash you e] Other technical specialists?
will need in the next 12 24. Have these advisors been
months? properly briefed about the
b] How much cash you can services you require from
personally raise? them and have they formally
c] How much external cash informed you about the cost
you need? of their services?
d] When you can repay it?
20. Have you agreed within the
family what security you can
offer your financiers?
Author’s final words

I trust that all those promising and I am writing this manual while
up-and-coming entrepreneurs, male inaugurating the tenth year of
or female, have found this Manual operation of my own business…
useful in their quest to set up their I am sure that in ten years’ time,
own ‘successful’ business. I augur one of you readers will be writing
you all the best of luck for your new a similar Business Manual for the
‘successful’ business! budding entrepreneurs of the
following decade!
I leave you with this interesting quotation:
People fall into three categories:

- Those who make things happen.
- Those who watch things happen.
- Those who are left to ask what did happen.
George Bernard Shaw
I ask: In which category of people would you like to be?
Good luck for your new business venture!

71
List of references
Arden P., It’s Not How Good You Are, It’s How Good You Want To Be
(Phaldon Press 2006).
Ashton R., The Entrepreneur’s Book of Checklists
(Pearson Prentice Hall 2004).
Barringer B., & Ireland R., Entrepreneurship – Successfully
Launching New Ventures (Pearson Prentice Hall 2006).
Birley S., & Muzyka D., Mastering Enterprise
(Pearson Professional 2002).
Bolton B., & Thompson J., Entrepreneurs – Talent, Temperament,
Technique (Butterworth-Heinemann 2005).
Burch J., Entrepreneurship (John Wiley & Sons 1992).
Fsadni M., Entrepreneurship Base Document (Malta) – A Qualitative
Research Project (Malta Enterprise – Euro Info Centre 2006).
Kotler P., & Armstrong G., Principles of Marketing
(Prentice Hall 2006).
Malhotra N., Marketing Research – An Applied Orientation
(Prentice Hall 2006).
Meredith G., Nelson R., & Neck P., The Practice of
Entrepreneurship (International Labour Organisation 1987).
Porter M., Competitive Strategy: Techniques for Analysing
Industries and Competitors (Free Press 1980).
Rosthorn J., Haldane A., Blackwell E., & Wholey J., The Small
Business Action Kit (Kogan Page 2002).
Zimmerer T., & Scarborough N., Essentials of Entrepreneurship
and Small Business Management
(Pearson Education International 2004).
Project Leader’s Acknowledgements

The present project which I have approaching entrepreneurship for
had the honour to lead has given the first time. Users of this manual
me the opportunity to work with a will be fortunate in benefiting from
number of people whose important the experience of an expert who
contribution has proved crucial is not only fully qualified and well-
to its success. It is with heartfelt published in her field of expertise
gratitude that I am pleased to but is also an entrepreneur in
acknowledge the determination and her own right. Writing also from
commitment shown by everyone her personal experience as an
involved in achieving this common entrepreneur who has, in the past
goal. ten years, helped a large number
of other entrepreneurs start
First and foremost, I am grateful and grow their own business, Ms
to the Employment and Training Fsadni, has written a manual that
Corporation (ETC), particularly the will assist those starting on a new
Chief Executive Officer, Dr. Sue entrepreneurial career avoid many
Vella and Senior Manager - Training of the pitfalls awaiting the new
Services, Mr. Joe Cutajar, for their entrepreneur.
continuous and generous support
throughout the various stages of Finally I would also like to thank the
the implementation of the project. Corporation’s EU Unit at ETC and
the contractor, for their proficient
I would also like to thank Ms. Marika approach to their work, and their
Fsadni B.A. (Hons) Bus. Mgt., M.B.A. support and patience in helping
(Brunel), who, in researching and me administer such an interesting
writing this manual, has produced project.
a remarkably professional work
which is still user-friendly even Philippe Vancell
for those clients of ours who are ESF 47 Project Leader

Entrepreneurship Manual: Don't Just Start A Business... Start A Successful One!

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Entrepreneurship Manual: Don't Just Start A Business... Start A Successful One!

Uploaded by

Copyright:

Available Formats

Don’t just start a business... Start a successful one!

Don’t just start a business...

Structural Funds Programme for Malta 2004-2006

First published in November 2007

Employment and Training Corporation (ETC)

Employment and Training Corporation (ETC)

All rights reserved. No part of this publication may be

Production: Outlook Coop

Structural Funds Programme for Malta 2004-2006

Phase 1: Identifying the personal strengths

Phase 2: Turning your idea into a successful business idea!

Phase 3: Writing a business plan for your successful idea

Setting up my own successful business - a re-cap!..........................................65

Entrepreneurship is the key

The Employment and Training backing of ESF funds, the project,

I wrote this business manual to I would like to thank the

As the name of this business what leadership skills must he/

w Buy a notebook! The Promotion of Equality

Should I set up my own business, or not?...

A small proportion of people are willing to take risks to change their

The major personal

Many people go through life wishing Strong Leadership Skills

Questions to ask yourself

Questions to ask yourself

Self-doubt is considered as one of w I will fail!

Other Personal Strengths Characterising

There are other just as important personal strengths which characterise a

w A Vision commit him/herself to adopting

w Mental health w A little bit of humour helps

Don’t look for the next opportunity.

The steps to be taken by the entrepreneur to turn

1. Observe trends 3. Protect your idea

entrepreneurs to identify new Marketing research attempts to

Questions to ask yourself

w Is the product/service in a w To what extent is the

ii. Usability Testing is a power of buyers and the threat

1. This new idea [product/ 4. The results or benefits of

There is no way to be sure that Engaging business consultants

Sadly, for these and other reasons,

In the light of the above discussion, before you select a business

w You know exactly what specific w When you are considering a

Using services offered by public sector agencies/departments

Strategic management The search for a

Writing the business plan It gives the entrepreneur and

1. Executive Summary first in order to give the business

broad, long-range statements for a better understanding of the

Core competencies are a unique b] Identify the Key Factors for

iii. A Focus Strategy: is for the entrepreneur to select

The strategic options available to the entrepreneur

Differentation Cost Focus

question, its special knowledge to compete in, will depend on

Questions to ask yourself

The marketing plan

As we have already discussed, will position its product/service in a

controllable, tactical marketing ii. The Price

billboards, bus advertising, etc. the entrepreneur must decide the

Questions to ask yourself

The operations plan

The operations plan should also

The financial plan must

information is called a sources and two to three years of projected

Step 1 – The Preparation of Historic Financial Statements

1. Is the business just an idea, 6. How will the company’s