Chapter 2

• PREPARATION AS AN ENTREPRENEUR
 Entrepreneurial Process
• Timmons Model of Entrepreneurial Process
Founder
(entrepreneur)

Opportunities Resources + Team

Business Project to offer

products or services to
customers

Simplified Entrepreneurial Process

 Entrepreneurial Process
The Timmons Model of Entrepreneurial Process describe the four major
components in venture creation. They are;

i. Founder (Entrepreneur) : the person who sets up the business

ii. Opportunity : A unique idea is needed to execute the business plan and
to open a new business in the industry.
iii. Team : Effective teams are required to be developed to effectively
execute the identified opportunity.
iv. Resources : starting a business plan by defining the business
opportunity is not enough. It is must to define the resources required in
the business
 Entrepreneurial Process
An entrepreneur led the entrepreneurial process
and he must be able to seize and act on
opportunity. With his team, he will put in a
viable package to the customers using resources
at hand. Also, he can use his money to attract
investment from others. He must show his skills
in order to convince his team and also be able to
execute the project, and to produce the
product/service to the customers.
 Skills Development Preparation

People Skills –
Conceptual skills Administrative
Technical Skills Communication
Skills
skill

are related to the Technical skills Employees are Administrative skills

ability of an involve the ability considered the most involve the ability to
organise work
entrepreneur to to use specific and important resources
effectively, prioritising
bring out that the orgn has
technical because they are the
operational obligations,
consistency and knowledge in fields
efficient and timely in-
ones that ensure the basket processing of
integrate all such as orgn grows and information, rapid
business activities engineering, become successful. routine decision
to achieve the finance, accounting
making, constant
monitoring of
firms major and marketing performance etc
aspirations
COMMUNICATION SKILL
Presentation skills & public speaking

• Identify a few key points – To help the audience retain the messages you're
giving them, use the chunking principle to organize your information into five
to seven key points.

• Don't include every detail – Good presentations inspire the audience to learn
more, and ask further statements to maximize their understanding of the issue.

• Use an outline – At the beginning, tell your audience what you intend to
cover, and let them know what to expect. This helps build anticipation and
interest from the start.

• Start and end strongly – Capture people's interest as soon as you begin, and
leave them with a message they won't forget. It's tempting to put all of your
effort into the main body of the presentation. However, if you don't get
people's attention at the start, they'll probably lose interest, and not really hear
the rest anyway.

• Use examples – Where possible, use lots of examples to support your points.
A lecture is often the least interesting and engaging form of presentation.
Look for ways to liven things up by telling stories, talking about real-life
examples, and using metaphors to engage your audience fully.
 THREE MAIN COMPONENTS OF
NON-VERBAL COMMUNICATIONS

2. Hands
 Personel appearance Attire
SMART CASUAL

CASUAL BLACK TIE /

SEMI-FORMAL

BUSINESS/
INFORMAL

BUSINESS CASUAL
STREETWEAR
 One minute pitch (elevetor pitch)
• The goal is to create a desire in the investors to know
more about your business, and get the chance of
presenting the ideas in more detail later.
 Three minutes pitch (Rocket pitch)
Short presentation the presenter needs to cover important elements
that touch on the business opportunity, the business market and the
business model.

Summarized the Picture the business

Demonstrate a intention in a clearly
positive presence attractiveness of the
business opportunity and succintly manner

Show the Demonstrate a

Explain on the Show that financial potential
business
market model investment
value
opportunity
Technical Skills
 PEOPLE’S SKILLS - NEGOTIATION

Relationship Communication Interest

Options Legitimacy Commitment

BATNA
THE SEVEN POINT SYSTEM

BATNA

Interests Options legitimacy Commitment

Communication
 BATNA
• The best alternative to a negotiated
agreement or BATNA is the most
advantageous alternative course of action a
party can take if negotiations fail and an
agreement cannot be reached.
• BATNA is the key focus and the driving force
behind a successful negotiator. A party should
generally not accept a worse resolution than
its BATNA.
EXAMPLE :

RM 6,000
RM 10,000

Seller Alternatives

Seller Settlement Range

SELLER BATNA
ZOPA

Buyer Settlement Range Buyer Alternatives

BUYER BATNA

RM 5,000 RM 7,500

ZOPA : zone of potential agreement

 Who Are Entrepreneurs?
1. Entrepreneurs know how to make a
difference
2. Entrepreneurs know how to spot and exploit
opportunities
3. Entrepreneurs know how to find the
resources required
4. Entrepreneurs are people who add value
5. Entrepreneurs have and main a good
network
 Who Are Entrepreneurs?
6. Entrepreneurs create capital
7. Entrepreneurs manage risks and uncertainties
8. Entrepreneurs are determined in the face of
adversity
9. Entrepreneurs involves creativity and
innovation
10. Enterprising activity
 Strategies To Start A Business
1. Entrepreneurship activity planning
2. Identifying the market
3. Price setting (fixing) strategy
4. Marketing strategy
5. Developing skilled manpower
6. Total project cost
STRATEGIES TO START A BUSINESS

Entrepreneurship activity
planning

Identifying the market

Price setting (fixing) strategy

Marketing strategy

Developing skilled manpower

Total project cost

 TYPES OF BUSINESS SURVIVAL
STRATEGIES

Stabilising Growth Termination

Strategy Strategy Strategy

Mix Corporate
Strategy Strategy
LEADERSHIP, INNOVATION AND CONSULTANCY
SKILLS IN BUSINESS
Leadership = the process of influencing
others to achieve group or organizational
goals.
Visionary Leadership = leadership that
creates a positive image of the future that
motivates organizational members and
provides direction for future planning and
goal setting.

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 Leadership Traits
 Desire to lead
 Honesty and integrity
 Self-confidence
 Emotional stability
 Cognitive ability
 Knowledge of the business
 Drive
 Have Vision
 Dedication

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 Leadership & Skills
– Successful Leaders Don’t
Procrastinate

– Successful Leaders Don’t Delegate

Accountability

– Successful Leaders Develop Other

Leaders
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 Consultation Process
1. The key is to reach the objectives of the party of
interest.
2. Give and take. You should sometime
compromise.
3. Be calm and control your anger.
4. Sell yourself.
 Consultation Process
5. Prepare to present it yourself. Written,
powerpoint or orally.
6. Ask Feedback.
7. Take time to think. Yes or no?
8. Remember the names
9. Do not compromise towards achieving the
objectives. STOP! If you must.
 Consultation Process
10. Use your strength wisely.
11. Believe in yourself.
12. Be fair.
13. End the process with a positive note.
14. thank you and gratitude.
 Negotiation Skills in Business
• Informal negotiation with friends
• Formal negotiation with suppliers and government
agencies.
• However, negotiation in business is different if it is
compared to normal daily life discussion. It is much
more complex. For a professional negotiation session,
you’ll need preparation, planning, strategies, tactic and
interpersonal and communication skills. These are
important ofr gaining a succesful outcome which satisfy
both of the dealing parties.
 Negotiation Strategy
– Prepared a complete negotiation agenda. A clear and focus agenda
will leverage every impact of any compromise.

– Give an early concession. Try to satissfy the other party whom you
have interest with.

– Get the necessary details for the all the important issues. Evaluate
the situation and the people who involve in the matter. You may had
to revise your strategies and objectives.

– There can be a rediscussion of agreed matters when the negotiation

took several days. Don’t worry, because these are the times to
change you minds till you’re satisfied.
 Negotiation Tactics
 A polite discussion will be more effective.
 Negotiate with people of power.
 Be sure that you’re voicing the important issues.
(at the right time).
 If there has to be a second meeting, set the
venues and date.
 Don’t be irate when head-locking.
 Take time out to discuss opinions among your
team. It is also used for cooling the heat of
discussion.
 Held back for discussing sensitive matters.
 Sometimes it is better not to say anything when
you’re presented with a ridiculous demand.
 Agree on the small concession while keeping
ahead with the main concession. (take what you
can).
 Use the positive/ negative tactic. It must be done
in a team. If the other starts to be on the
negative mood, a positive member will take over.
 Administrative Skills
• Basic Entrepreneur Skills in the administrative
department would come in handy for posting in your
daily income and expenses, making your receipts and
even for making sure you pay your bills on time. On
top of that, you need your managerial skills to be at
the top of the situation when you business starts to
operate. It means making a sound decision about
approving a certain account while answering the
phone as part of your customer service.
• Your time management skills - so that you do not
waste your time puttering in the house when you
have loads of unchecked emails in your mailbox. Your
planning skills would make sure you have, not only
an idea of what you have to accomplish for the day,
but you are bent on sticking to your plan. The
hardest thing for a one-person business, much more
a home-based one, is the overwhelming task ahead
of you everyday. Multitasking is clearly the name of
the game and you have to be really good at it to
accomplish things.