ENTREPRENEURSHIP AND

BUSINESS PLANNING

Presented by Dr. Devani Laksmi Indyastuti

Creating a New Business
◦ -Online Resources for Creating a Business
◦ Some of the more important advantages of being an entrepreneur are:
- As an entrepreneur, you may possibly earn large profits on your business, and therefore earn a much higher income than if you worked for another
business.
- You can be your own boss and run the business the way that you want.
- Because you are in control, you do not need to fear being mistreated by a boss or being fired.
- You have the satisfaction of working in a business that you created, and you will likely be more willing to work because you are directly rewarded
for your work in the form of higher business profits.
◦ Being an entrepreneur also has some disadvantages that should be considered:
- You may possibly incur large losses and could even lose your entire investment in the business.
- Though you may be in control of the business, you have to ensure that the business functions properly. Being in control does not necessarily mean
that you can skip work whenever you desire; the income you earn is tied to how well the business is managed on a daily basis.
- Though, as the owner of a business, you will not be fired, you could still lose your source of income if the business fails.
Entrepreneurial Profile
◦ Risk Tolerance Entrepreneurs must be willing to accept the risk of losing their business investment.
◦ Creativity Entrepreneurs recognize ways to increase customer satisfaction. They may detect a need by customers for a
product or service that Does not exist, and then attempt to satisfy that need. Or they may recognize that an existing product or
service has deficiencies and attempt to improve on it.
◦ Initiative Entrepreneurs must be willing to take the initiative to make their ideas happen. They are able to recognize
challenges and deal with them directly. To take the initiative, entrepreneurs need to have ambition and be persistent.
Assessing Market Conditions

◦ Demand
◦ Competition
Market share a firm’s sales as a proportion of the total market
Segments subsets of a market that reflect a specific type of business and the perceived quality
◦ Labor conditions
◦ Regulatory conditions
Developing a Competitive Advantage

◦ Key Advantages
Produce Products Efficiently
Produce Higher-Quality Products
Using the Internet to Create a Competitive Advantage
Expenses of a Web-Based Business
Using SWOT Analysis to Develop
a Competitive Advantage
◦ Developing the Business Plan
business plan
a detailed description of the proposed business, including a description of the product or service, the types of customers it would
attract, the competition, and the facilities needed for production.
Assessment of the Business Environment
◦ Economic Environment how demand for the product may change in response to future economic conditions.
◦ Industry Environment. Industry environment is assessed to determine the degree of competition.
◦ Global Environment. The global environment is assessed to determine how the demand for the product may change in
response to future global conditions.
 Management Plan
A management plan, which includes an operations plan, focuses on the firm’s proposed organizational structure, production, and human
resources.
◦ Organizational Structure An organizational structure identifies the roles and responsibilities of the employees hired by the firm.
◦ Production. Various decisions must be made about the production process, such as the site (location) of the production facilities and
the design and layout of the facilities.
◦ economics of scale as the quantity produced increases, the cost per unit decreases
◦ Human Resources Many businesses begin with just a single owner who works without any employees. The owner is focused on
making the business successful because the owner has invested his or her own funds in the business and is entitled to the profits of
the business. As a business grows, it tends to hire more employees. In general, employees are not as concerned about a business as its
owners because they have not invested their own money in the firm. Thus, they may not be motivated to ensure that the business is
successful.
A plan for monitoring and evaluating employees.
By monitoring and compensating employees properly, the business can ensure that the employees are striving to maximize its
performance.
Marketing Plan
◦ A marketing plan focuses on the target market, product characteristics, pricing, distribution, and promotion.
Financial Plan

◦ The financial plan determines the means by which the business is financed. It also attempts to demonstrate
that the creation of the business is feasible.
◦ Financing The creation of a business requires funds to purchase machinery and materials, rent space, hire employees, and
conduct marketing.
◦ Feasibility
Online Resources for Developing a Business Plan

◦ Business Plan Outlines Packages normally offer one or more outlines of business plans that can be altered to fit most businesses. Some packages
take entrepreneurs through a series of questions in order to create a tailor-made plan.
◦ Text Generation Much of the information that goes into a business plan is standardized. Business plan software can insert such text directly into the
plan, making the appropriate substitutions for company Names and products. Once in place, the text can be edited as needed.
◦ Forecasting Any business plan software packages should include the ability to create consistent projections. The software package should be able to
predict sales and costs in various ways (for example, using percentage growth models, market share models, or values that are individually specified
by the planner) and should ensure that interrelated data are consistent. For example, when the planner changes values in a table of projected market
shares, forecasted sales in other parts of the document should automatically be updated.
◦ Graphics Business plan software offers the ability to create charts of
several different types (bar charts, pie charts, line charts) and should also allow users to draw other common charts, such as organizational charts.
◦ Supplementary Documents A number of business plan packages offer supplementary
◦ documents, such as disclosure agreements, which are often used in conjunction with business plans, although not necessarily as part of the document.
◦ business risk the possibility that a firm’s performance will be lower than expected because of its exposure to specific
conditions.