This action might not be possible to undo. Are you sure you want to continue?
DEFINE AN ENTREPRENEUR
MEANING • Derived from French word Entreprendre means “to undertake” • Richard Carleton: “a person who buys factors of production at certain prices in order to combine them into a product with a view to sell them at uncertain prices .
but not certain at which price he could sell his produce . labours etc.pesticides ..Considered as a risk bearer Eg: Farmer pays definite price for seeds. fertilizers .
TYPES OF ENTREPRENEURS • Entrepreneurs who work for invention only when there is a need NECESSITY OPPORTUNISTIC • Entrepreneurs who are always looking for the opportunity whether there is a need of invention or not .
INVENTOR & INNOVOTOR • INVENTOR .A person who creates new thing • INNOVATOR -is a person who brings something new in business .
respond to it and exploit it as an opportunity . define an entrepreneur.PETER F DRUCKER • PETER F DRUCKER. “as the one who always searches for change.
raises money. “one who innovate. . assembles inputs and sets the organizations going with his ability to identify them and opportunities.JOSEPH A SCHUMPETER • defines an entrepreneur as. which others are not able to fulfils such economic opportunities”.
” .defines an entrepreneur as.SAY . “one who brings together the factors of production and combine them into a product.J.B.
F. .KNIGHT • “ A Person who bears uncertainty ( risk which cannot be insured & is incalculable) can be reduced by taking Insurance.H.
FEATURES OF AN ENTREPRENEUR .
Characteristics of a successful entrepreneur Risk taker Determination & Persistence Vision. creativity and innovation Relevant skills and expertise Spot and take advantage of opportunities Motivation to succeed Entrepreneur No daunted by failure Passion .
PATH FOLLOWED BY ENTREPRENEUR .
• He developed a twoprong strategy of expanding the market while maintaining a strong hold on competitors.Bill Gates 1955 • By linking his Microsoft software to IBM's first PCs. . he dominated the industry.
.Michael Dell 1965 • Created a new model for PC sales • Cutting out the retail middleman and custombuilding computers to suit buyer‘s needs put Dell at the front of the class of PC makers.
• 2006 Nobel Peace Prize winner.Muhammad Yunus 1940 • Founded a banking system 30 years ago • To lend small amounts of money to the rural poor in Bangladeshi villages. .
Steve Chen. 28 & Jawed Karim.Chad Hurley. 27 • Founders of YouTube • Broadcasts 100 million short videos daily on myriad subjects • Sold to Google . 29.
The major qualities are Knowledge. The successful completion of any job .and Motive .Skill.Entrepreneurial Traits (Qualities of an entrepreneur) A Trait can be explained as an underlying characteristic of a person which leads to the effective or superior performance of a job. the organizer should posses certain special qualities. These qualities are known as traits or features.
A person with knowledge can describe things to others . Skill : Skill means the ability to practice knowledge Motive : motive is an urge to achieve the goals .Knowledge : It means the collection and retention of information in one’s mind.but mere description will not enable the listener to perform a job. . This achievement motivation directs a person to perform his duties in a better manner.
• Clear objectives :An entrepreneur should have clear objectives regarding the nature of his product. . demand for the products etc……… • Effective communication : An entrepreneur should be able to communicate his ideas . messages and information effectively and clearly to others.Other Entrepreneurial Traits • Mental ability: It consists of intelligence and creative thinking.
•Ability to mobilize resources : Resources are scarce while demands are unlimited . •Technical knowledge : An entrepreneur must have a clear idea about the technological advancements taking place in the field of business.• Guarding of business secret : The leakage of business secrets to his rivals will effect his business adversely. So he must be very careful in the selection of his subordinates.
. low risk to less profit.• Risk-bearing capacity: The risk and reward are positively correlated i. • Employees well wisher : entrepreneur must take welfare measures for the employees who are working under him.e. . • Hard working mentality : An entrepreneur should work hard to achieve his goals. high risk leads to high profit.
.• Imagination and Initiative • Capacity to interact with people •Ability of organization and administration •Efficient supervision • Motivation • Self confidence etc……………….
.Shumpeter-”An individual who introduces something in the economy –a method of production not yet tested by experience in the branch of manufacture concerned a product with which consumers are not yet familiar .” . a new source of raw material or of new markets and the like . .ENTREPRENEUR • Joseph.A.
. .encouraging innovative thinking etc. .HOW TO DEVELOP . motivation. • Entrepreneurs can be potentially developed through training . It will help them to identify their aptitudes . . . developing personalities .
• A person becomes entrepreneur when he . • Perceives opportunities for profitable investments • Explores the prospects of starting such a manufacturing enterprise • Obtain necessary industrial licences • Arranges initial capital • Provides personal guarantees to the financial institutions • Promises to meet short falls in the capital • Supplies technical know how . . .
• • • • • • • An emerging entrepreneur should develop Willingness to work hard Desire for high achievement Clear foresight Organising capacity Innovative skill Self confidence .
WHO IS AN ENTREPRENEUR? .
reason and acts to convert ideas into commercial opportunities and to create value. He is ordinarily called a business man. He is the person who combine capital and labour for the purpose of production. He organises and manages a business unit assuming the risk for profit. He is an individual who think. .
He is the artist of the business World.convert them into valuable product and services and create value within the organisation and in the market place. . The mission of an entrepreneur is to find economic opportunities.
“one who innovate. .respond to it and exploit it as an opportunity”. • JOSEPH A SCHUMPETER defines an entrepreneur as. raises money.DEFINITION • PETER DRUCKER. define an entrepreneur. “as the one who always searches for change.assembles inputs and sets the organisations going with his ability to identify them and opportunities. which others are not able to fulfil such economic opportunities”.
“an entrepreneur is one who brings together the factors of production and combine them into a product.SAY.• In the words of J.B.” .
FEATURES OF AN ENTREPRENEUR He is the hero of the market place. highly motivated individual who take risk to achieve goals. . He is creative and result-oriented.planner and worker. He improves the technology. He is action – oriented. He is a catalyst of change. product and the society. He is both thinker and doer.
. He undertake venture not for his personal gain alone but for the benefit of consumers.seize market with a salesmans persuasiveness.governments and societies as well.manipulate funds with financial talent and smell errors.fraud and deficiencies with an auditors position. He build new enterprises He can foresee the future.
Who needs • You need a business plan if you – Are running a business – Are applying for a business loan – Are looking for business investment – Are working with partners – Want to communicate with a management team – Wish to sell a business/ set a value on business .
allocate resources. focus on key points and prepare for problems and opportunities • Comprehensive document describing – Business – Objective – Strategies – Market it is in – Financial forecasts • Not just a blue print. but a vital component of .Description • A plan that works for a business to look ahead.
promotion or expansion • Creating a regular business review and course correction process • Define agreement between partners • Set a value on a business for sale or legal purposes .Why do anyone need to write • • • • • Defining a new business Support a loan application Raise equity funding Define objectives & strategy to achieve Evaluate a new product line.
Frame work • Executive Summary • Industry • Company Description • Product/ Service • Market Analysis • Competitive Analysis Strategy & Implementation Web plan Summary Management Team Operational Strategy Financial Analysis Build Your Plan .
Components for each segment • Start-up: Proof that your business will generate enough revenue to cover your expenses • Existing business: Ultimate agenda is to be more of operational than financial • Venture Capitalist: Factors involved in decision to invest in a company – quality of people .
Elements to create a successful • • • • Presents a well thought out idea Contains a clear and concise writing Has a logical structure Illustrates management’s ability to make the business a success • Shows profitability • Bringing all together • Focused and realistic .
Home work before planning • • • • • What is the purpose behind your company? Who are your potential customers? Who are your competitors? How will you run your business? Factors to consider – – – – Stat-up expenses Operating expenses Cash flow Future profitability .
how Include market research Explain relation to financial projections Use plan to monitor actual performance and compare to your expectations Consider all your competition Address strengths and weakness • • • • • • • • • • Just guess what your costs may be Biased when composing plan Leave out relevant facts and details Handwrite your plan Expect to complete in couple of days Assume you are required to use software Struggle to fit plan to generic mold Assume reader is industry expert Overestimate revenues Underestimate expenses & costs . when. where. what.Do’s & Don’ts • • • • • • • • Understand planning process is critical Utilize to determine what to include Answer key questions such as who.
Relevance • • • • • • • • • Avoid big mistakes Counterbalance your emotions Make sure everyone’s on the same page Develop a game plan Raise capital Establish business milestones Understand your competition Enunciate previously unstated assumptions Uncover new opportunities .
Advantages • Helps you make decisions • Helps you knock off the gray area • Can be a reality check • Identifying gaps early on the process gives a chance to shore up the researches • Can give you new ideas • Helps to think creatively and come up with solutions for the toughest business challenges • Creates an action plan • Helps to outline action items. next steps and future activities .
• The whole process of starting a business begins with writing a business plan. • A good business plan is the key to setting up a successful business.INTRODUCTION • A business enterprise is an economic institution engaged in the production or distribution of goods and services in order to earn profits and acquire wealth. .
There are 8 simple steps to creating your own business plan .
Name of your business .create a name or reevaluate the name of your business. Does it integrate well with what you are selling? Is it easy to spell and remember? Is it a name that can be well branded over time? .1.
.what will your business look like 5 years from now? Think of how you may want to expand it to include other branches or extra employees.2. Vision .
. what activities it performs and what is unique about it that stands out from your competitors. Mission statement .this defines what your business really does.3.
. Set specific goals for each of your products or services.4. Make sure they are quantifiable and set to specific time lines. Goals and objectives .clearly define what you want to achieve with your business.
by analysing these characteristics in your business. opportunities. you will get a clearer idea of what it will take for you to not only to survive but also prosper. threats (SWOT) . Strengths.5. weaknesses. .
This should include your sales and marketing strategies. . your business will not get off the ground. because without it.6.this is the most critical step of your business plan. Strategic action plan .
but it is clearly good business practice to include it. Financial plan .a business can operate without budgets.7. you will be more likely to achieve your business objectives. With budgets. . you will make more-reasoned decisions and you will have better control of your cash flow.
Celebrate your wins and recharge yourself to accomplish your next goal.8. So now break them down into measurable pieces and monitor the results regularly.you wrote your business plan and set the goals with the intent of achieving them. Measuring and evaluation . A plan that cannot be measured is almost always destined for failure. .
so you remain on track to building a profitable business.Conclusion: Now that you have a business plan. make it a part of you by knowing and understanding it clearly. . Build upon it continuously and refer to it often.
location and needs of your business's target market. spending habits. about a product or service to be offered for sale in that market. research into the characteristics. analyzing and interpreting information about a market. and about the past. present and potential customers for the product or service. and the particular competitors you face . the industry as a whole.Market Research The process of gathering.
Expanding a company’s consumer base can prove to be complicated. by discovering “What do they want?” and “What do they need?” .Need for Market Research • Realize Opportunities to Reach New Customers. Validate and seek to understand the needs of potential customers. but if successful allows for greater profit potential and growth sustainability. • Is your company actively reaching out to new customers? Having a strong consumer base is important.
can help your company take action to correct unmet needs of your customers. Certain market segments will expand and contract with time. within your marketplace. events. and other social variables. Researching about demographic or societal trends will be valuable when determining who to interview from each group.Determine growth in the Marketplace –Who Needs Your Products? • Examining market segments. .
preference. Conduct some focus groups. satisfaction. and dissatisfaction.Discover the Best Approach to Satisfy the Needs of Your Existing and Potential Customers • What is the best approach to satisfy unmet needs of your customers? How can your company develop a product with benefits that will meet the needs of more people? What can your company ensure to have the capacity to continuously meet demand? These situations are where focus groups provide great solutions. including discovering their familiarity. .
Inspect their products. location. whose job it is to try out the products or services and rate the company on multiple aspects. Put yourself in the shoes a “secret shopper”.See What Your Competition Is Doing • Take a closer look at what your competition is doing. try it out. With the rise of smart phones and I Pads. advertising. If they have posted advertisements take pictures. pricing. etc. . services. marketing techniques. make a trip or few to examine their culture. there is virtually no excuse to not observe every aspect of your competition. If they have a brick and mortar location. If they provide a service.
The company spent a lot of thought into the reasons why the wanted to change their logo. Starbucks has dedicated over 40 years in building trust and creating genuine connections at their coffee houses. as many felt it was in line with their own identity.Rethink and Rework Your Unique Value Proposition and Brand Identity. . you may have noticed that they recently changed their branding of the Starbucks “Siren” logo. If you have ever been to a Starbucks coffee house in the past few years. Customers favoured the new logo. With the help of numerous opinions polled and research conducted. the new Starbucks logo was launched with great success.
Companies spend lots of money to gain the attention of customers. GM at $1. Verizon about $1.Fine-Tune Your Advertising • The advertising business generates typically over $100 billion in revenue and keeps increasing every year.4 billion and P&G weighing in at the largest contender of $2.24 billion in advertising.5 billion.4 billion. at&t spent over $1. . In 2010.
.Verify if Your Customers Are Satisfied – And If Not. customer satisfaction is delineated as a certain percentage of customers’ expectations that are met or exceed satisfaction goals versus a total. If you have a storefront. If your company is seeking to take a more scientific approach. What They Really Want • There is only one way to know if your customers are satisfied with your company’s offerings. you could just outright ask your customers. which is by asking them if they are satisfied.
manufacturing or non manufacturing should include an operations plan as part of the business plan. • A service provider would also need this in the business plan in order to explain the chronological steps in completing a business transaction.OPERATIONS PLAN • All businesses. . • Describes the flow of goods and services from production to the customer.
• This would be a convenient place for the entrepreneur to discuss the role of technology in the business transaction process. • The process of delivering the service quality is what distinguishes one new service venture from another and thus needs to be the focus of an operation plan. .
• The entrepreneur should summarize the forecasted sales and the appropriate expenses for at least the first three years.FINANCIAL PLAN • It is an important part of the business plan. • It determines the potential investment commitment needed for the new venture and indicates whether the business plan is economically feasible. with the first .
• The last financial item needed in this section of the business plan is the projected balance .• The second major area of financial information needed is cash flow figures for three years. • It is important to determine the demands on cash on a monthly basis. with the first year’s projections provided monthly. especially in the first year.
• It summarizes the assets of a business. the investment of the entrepreneur and any partners. and retained earnings.• This shows the financial condition of the business at a specific time. • Any assumptions considered for the balance sheet or any other item in the financial plan should be listed for the benefit of the potential investors. . its liabilities.
also called mom and pop store by some in the United states. o Small businesses are normally privately owned corporations. accountants. is a business that is privately owned and operated. Small businesses can also be classified according to other methods such as sales. tradesmen. . lawyers. other small shops (such as a bakery. and online business such as web design and programming) etc. o Small businesses are common in many countries. hairdressers. Typical examples include: convenience stores. or sole proprietorships.photographers. assets. or net profits. restaurants. guest houses. with a small number of employees and relatively low volume of sales. depending on the economic system in operation. small-scale manufacturing.Small business o A small business. partnerships.
Independence is another advantage of owning a small business. entrepreneurs have to work very long hours and understand that ultimately their customers are their bosses. One survey of small business owners showed that 38% of those who left their jobs at other companies said their main reason for leaving was that they wanted to be their own bosses. Small business is also well suited to internet marketing because it can easily serve specialized niches. take their own risks. Small business proprietors tend to be intimate with their customers and clients which results in greater accountability and maturity.Advantages of small business A small business can be started at a very low cost and on a part-time basis. many people desire to make their own decisions. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors. Freedom to operate independently is a reward for small business owners. In addition. . and reap the rewards of their efforts. However. something that would have been more difficult prior to the internet revolution which began in the late 1990s.
outdoor (roadside billboards). they must work on marketing their business every day. These Internet deals encourage new visitors to small businesses. print. word of mouth. Another means by which small businesses can advertise is through the use of “deal of the day” websites such as Groupon and Living Social. email marketing. Electronic media like TV can be quite expensive and is normally intended to create awareness of a product or service. radio. • • • . customer referrals. and internet. Small businesses typically find themselves strapped for time but in order to create a continual stream of new business. Common marketing techniques for small business include networking. television. yellow pages directories.MARKETING THE SMALL BUSINESS • • Finding new customers is the major challenge for Small business owners.
given sufficiently sound business venture plans . and or other assets. Loans from friends or relatives Grants from private foundations Personal savings Private stock issue Forming partnerships Angel investors Banks SME finance.. • • • • • • • • • • Small businesses use several sources available for start-up capital Self-financing by the owner through cash.S0URCE OF FUNDING. equity loan on his or her home. including Collateral based lending and Venture capital.
you run the risk of needing to make expensive changes of direction later on as you have not aligned your objectives to the success of your business. what corrective action(s) can be taken? An important part of planning our business entails knowing the key things that can tell you when you have reached our goals." But how do we define and measure success in our business? How do we know if our business is a success? Can you tell if we are on or off course? If we are off course. You must sit down and think what you really need to do to make your dream business a success • .SUCCESS FACTORS FOR SMALL BUSINESS • • • • • Success is "where preparation and opportunity meet. Called key success factors. these are indicators or milestones that measure your business achievements and help determine how well you are progressing towards your goals and objectives. Without determining your key success factors.
The 80-20 rule of business states that 80 percent of your business will come from 20 percent of your customers. whether by reducing your costs for that product or increasing its price 2. marketing and product development. or cutting down unnecessary supplies and equipment. you may need to identify how to make its current sales profitable. sales and customer service. Sell each unit at a profit. The above are but a few of the key success factors that you can use for your business. give your customers more than they expect. A lower overhead should be a continuing objective for your business. Ask for customer feedback through surveys or direct interaction with them to find out what are the items that they need and expect from your business. Find and retain high-value customers. 4. and human resources . You can cut costs by evaluating your insurance needs. 1. Your key success factors must encompass all the important areas of your business. 3. Satisfied customers are more likely to come back to you. It is therefore critical that you exert the extra effort to ensure that you retain the business of your top customers. If not. Ensure that your products are created or chosen in response to the needs of your customers. Continue to reduce overhead costs. 5. Evaluate each and every product that you sell and determine if you are selling them profitably. Develop new products while maintaining the high quality of existing products. A very important success factor needed to sustain your business is to provide the best service to your customers. from finance. Create and maintain the highest level of customer satisfaction. reducing your reliance on outside consultants and service providers. Better yet.
all deployed in our wonderfully pure and extremely demanding marketplace. and keep one eye on the road ahead and one on the horizon. . Identify how you measure up with each of the success factors.CONCLUSION Small business success is made up of experience. Lead with your strengths. hard assets. and human assets. education. overcome deficiencies.
SMALL BUSINESS The basic objectives underlying the development of small scale industries are: Increase in the supply of manufactured goods Promotion of capital formation The development of indigenous entrepreneurial talents and skills Creation of employment opportunities .
DYNAMICS Payment mechanism This is necessary to ensure that small industries do not get into the grip of the large buyer enterprises which may also control them through equity and technology. .
• This could encourage indirect ownership of small units by large corporate entities .Resources • The most important change for modern small scale is the provision of additional finance by permitting limited liability for new non-active partners and permitting up to24 percent equity investment by other industrial undertakings.
Nodal agency • The Small Industry Development Organization(SIDO) has been recognized as the nodal agency to support the SSI in export promotion. • A technology development cell would also be set up in SIDO to provide technology inputs for improving productivity and competitiveness of SSI products. .
other professional and marketing agencies.• Marketing promotion would be undertaken through co-operative .public sector institutions. . • The National Small Industrial Corporation (NSIC) would concentrate on marketing of mass consumption items under a common brand name.
SS units would be given priority in the allocation of indigenous raw materials. adequate and equitable distribution of imported raw materials would also be ensured for this sector. • Besides this.• Based on the capacity needs. .
Quality • Industry Associations would be encouraged and supported to establish quality counseling and other testing facilities. • Compulsory quality control would be enforced. . to provide up-to-date knowledge on technology and market would also be established. • Technology information centres.
Small businesses are normally privately owned corporations.SMALL BUSINESS A business that is privately owned and operated. partnerships or sole proprietorships. with a small number of employees and relatively low volume of sales. Common in many countries depending upon the economic system in operation. Generally has under 50 employees. .
ADVANTAGES Started at a very low cost and on a part time basis Satisfaction of small business owners Well suited to internet marketing Independence .
CAUSES Poor planning Poor record keeping and financial controls Inadequate capital Poor customer service No prior business experience Competition Ineffective marketing .
. Be knowledgeable about the market. Be proactive . Be smart about the financial position.TIPS TO AVOID SMALL BUSINESS FAILURES Make sure there is enough demand for the product or service you are offering. Be flexible about the plan.when it comes to sale.
“success does not come to those who wait and it does not wait for anyone to come to it” .
• THIS IS UNDERTAKEN TO FIND OUT WHETHERTHE PROPOSED PROJECT WOULD BE FEASIBILE OR NOT.FEASIBILITY PLANNING • FEASIBILTY PLANNING IS A VERY SIMPLE START UP PLAN THAT INCLUDES A SUMMARY.KEYS TO SUCCESS.BASIC MARKET ANALYSIS OF COSTS . • THIS KIND OF PLAN IS GOOD FOR DECIDING WHETHER OR NOT TO PROCEED WITH THE PLAN . MISSION STATEMENT.TO TELL IF THERE IS A BUSINESS WORTH PURSUING. .PRICING PROBABLE EXPENSES.
FEASIBILTY PLANNING INCLUDES THE FOLLOWING • MARKET FEASIBILITY • TECHNICAL/OPERATIONAL FEASIBLTY • FINANCIAL FEASIBILITY .
MARKET FEASIBILITY IS CONDUCT FOR THE FOLLOWING REASONS • TO ESTIMATE THE AGGREGATE DEMAND OF THE PROPOSED PRODUCT OR SERVICE IN FUTURE. . • TO ESTIMATE THE MARKET SHARE OF THE PROPOSED PRODUCT OR SERVICE IN FUTURE.
• EXPECTED MARKET SHARE OF THE PROPOSED BUSINESS ENTERPRISE. .MARKET ANALYSIS IS CONCERNED WITH BROADLY TWO VARIABLES • PRESENT OR FUTURE AGGREGATE DEMAND OF THE PROPOSED PRODUCT OR SERVICE.
. • THE COST AND AVAILABILITY OF TECHNOLOGY MAY BE OF CRITICAL IMPORTANCE TO THE FEASIBILITY OF A PROJECT OR IT MAY NOT BE AN ISSUE AT ALL.TECHNICAL/OPERATIONAL FEASIBILITY • TECHNICAL OR FEASIBILITY ANALYSIS IS DONE TO ASSESS THE OPERATIONAL ABILITY OF THE PROPOSED BUSINESS ENTERPRISE. EG : A HOSPITAL MIGHT NEED THE LATEST TECHNIQUES TO STAVE OFF COMPETITION.
TECHNICAL OR OPERATIONAL ANALYSIS COLLECTS DATA ON THE FOLLOWING PARAMETERS • • • • • • MATERIAL AVAILABILITY MATERIAL REQUIREMENT PLANNING PLANT LOCATION PLANT CAPACITY MACHINERY AND EQUIPMENT PLANT LAYOUT .
FINANCIAL FEASIBILITY IS DONE TO ASSESS FINANCIAL ISSUES OF THE PROPOSED BUSINESS VENTURE. .FINALLY.FINANCIAL FEASIBILITY • ONCE MARKETING .OPERATIONAL AND ORGANIZATIONAL ANALYSIS HAS BEEN DONE SUCCESSFULLY.
COST OF PLANT AND MACHINERY. WORKING CAPITAL ESTIMATES. COST OF PRODUCTION. PROFITABILITY PROJECTIONS.IT INCLUDES THE FOLLOWING • • • • • • • • COST OF LAND AND BUILDING. . PROVISION FOR CONTINGENCY NEEDS. PRELIMINARY COST ESTIMATION. SALES AND PRODUCTION ESTIMATES.
BUSINESS VENTURE ??? ECONOMIC ACTIVITY BUYING AND SELLING OF GOODS AND SERVICES UNDERTAKING RISK MAXIMISATION OF PROFIT .
.WHY PLANNING??? DECIDING IN ADVANCE ASSUMPTIONS ABOUT THE FUTURE SYSTEMATIC APPROACH FOR REDUCING RISK.
IT IS THE INTENTIONAL ACTIVITY OF A PERSON OR A GROUP OF PERSONS.MAINTAIN OR ENHANCE PROFIT BY .THE CONCEPT OF ENTREPRENEURSHIP INVOLVES MOBILISATION OF RESOURCES AND UTILISATION OF THEM WITH A VIEW TO INITIATE CHANGES IN PRODUCTION.UNDERTAKEN TO INITIATE.BUSINESS PLANNING TO WHOM ?? BUSINESS PLANNING ARE MADE BY THE PERSONS WHO ARE GOING OR WILLING TO UNDERTAKE A BUSINESS VENTURE.
ESSENTIAL QUALITIES NEED FOR AN ENTREPRENEUR BEFORE PLANNING ADVENTURISM RISK BEARING INNOVATION OF NEW PRODUCTION IDEAS IDENTIFICATION OF NEW USAGES FOR MEN AND MATERIALS .
STEPS FOR PLANNING A BUSINESS VENTURE EVALUATES A NEW SITUATION BY THE ENTREPRENEUR IN HIS ENVIRONMENT PERCEIVES OPPORTUNITIES FOR PROFITABLE INVESTMENTS EXPLORES THE PROSPECTS OF STARTING SUCH A MANUFACTURING ENTERPRISE .
ARRANGES INITIAL CAPITAL PROVIDES PERSONAL GURANTEES TO THE FINANCIAL INSTITUTIONS PROMISES TO MEET SHORT FALLS IN THE CAPITAL SUPPLIES TECHNICAL KNOW-HOW. .
ESSENTIALS OF A GOOD BUSINESS PLAN CLEAR-CUT OBJECTIVES FLEXIBILITY ADOPT SYSTEMATIC APPROACH SIMPLE AND EASY TO UNDERSTAND .
.CONCLUSION BEHIND EVERY SUCCESSFUL BUSINESS THERE IS A GOOD PLAN.
This kind of plan is good for deciding whether or not to proceed with a plan.Feasibility plan • A feasibility plan is a very simple start-up plan that includes a summary. basic market analysis. . and preliminary analysis of costs. to tell if there is a business worth pursuing. and probable expenses. pricing. mission statement. keys to success.
A feasibility plan is valuable for: • Starting a new business • Expansion of an existing business • Adding an enterprise to an existing business • Purchasing an existing business .
Feasibility Plan includes: • Market Analysis • Competitive Analysis • Venture Analysis .
technological. • 2. What threats exist. Segment the market? What are the size. political. expected growth and trends of each segment? • 4.Market Analysis • 1. e. etc. Determine the size of the industry you are considering.g. international.? • 5. economic. Identify trends that are driving the market How is the market changing? • 3. Are there new distribution channels that can be used to exploit existing markets? .
How do your competitors perceive themselves? . Describe the major competitors in the market. What barriers to entry do new companies face? • 3. What is the degree of rivalry among competitors? • 4. • 5. How is the industry structured? • 2.Competitive Analysis • 1.
etc. *Channels of distribution.• On what basis do the major companies in the marketplace compete: service.? • How much control do you have over: * Setting prices. * Costs. quality. new product/service introductions. . customer support. price.
Venture Analysis • • • • • • Opportunity or Need Product or Service Target Market Unique Benefits Competitive Advantage Risks .
What is Marketing? • Business function • Business philosophy .
Marketing as a business philosophy • The Marketing Concept • Organizing all the firm’s activities around the goal of being profitable by satisfying the wants and needs of its customers. .
Buyers • 4 Ps .Marketing as a business function • Managing exchange relationships • • Sellers----------------.
. promote and distribute want satisfying product and services to the present and potential cutomers.DEFINITION • Marketing may be narrowly defined as a process by which goods and services are exchanged and the values determined in terms of money prices. Marketing is a process or a system of a business designed to plan. price.
. All business operations revolve around customer satisfactions and services.MARKETING CONCEPT • It emphasizes customer oriented marketing process. Marketing plans and policies and programmes are formulated to serve efficiently customer demand.
NEW MARKETING SYSTEM PRODUCT ORIENTED Something that had to be sold to the customer PRODUCT CONSUMER (Distributive in nature) Overall change in the perception of marketing CUSTOMER ORIENTED CONSUMER ( To serve demand) Something that Is bought by the customer PRODUCT .
. media campaigns. . making it informal and flexible. and sales force.A large scale business can have its own formal marketing network. but a small unit may have to depend totally on personal efforts and resources.
of marketing. An enterprise grows. stagnates. “Nirma” is an appropriate example of the success of small scale enterprise. as the case may be.Marketing makes or breaks a small enterprise. or perishes with the success or failure. .
Common Elements in the Marketing Skills of Great Entrepreneurs
They possess unique environmental insight, which they use to spot opportunities that others overlook or view as problems. They develop new marketing strategies that draw on their unique insights. They view the status quo and conventional wisdom as something to be challenged. They take risks that others, lacking their vision, consider foolish. They live in fear of being preempted in the market. They are fiercely competitive. They think through the implications of any proposed strategy, screening it against their knowledge of how the marketplace functions. They identify and solve problems that others do not even recognize.
They are meticulous about details and are always in search of new competitive advantages in quality and cost reduction, however small.
They lead from the front, executing their management strategies enthusiastically and autocratically. They maintain close information control when they delegate. They drive themselves and their subordinates.
They are prepared to adapt their strategies quickly and to keep adapting them until they work. They persevere long after others have given up.
They have clear visions of what they want to achieve next. They can see further down the road than the average manager can see.
A feasibility plan is a brief formal analysis of a prospective business idea. The goal of a feasibility plan is to give the entrepreneur a clear evaluation of the potential for sales and profit for a particular idea.
A feasibility plan is valuable for: • Starting a new business • Expansion of an existing business • Adding an enterprise to an existing business • Purchasing an existing business
Elements of a Feasibility Analysis
Industry and market feasibility
Product/ service feasibility
• Estimate the total capital requirements. • Estimate equity and credit needs. • Budget expected costs and returns.
Product or Service Feasibility Analysis
• Are customers wiling to purchase our goods and services? • Can we provide the product or service to our customers at a profit?
Industry and Market Feasibility Analysis
• • • • • Industry description. Industry competitiveness. Market potential Access to market outlets. Sales projection
• • • • • Determine facility needs. Suitability of production technology. Availability and suitable of site. Raw materials. Other inputs.
What is Marketing Research?
According to the American Marketing
Association, marketing research is the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.
at the best time and the right amounts? Are my prices consistent with what buyers view as the product's value? Are my promotional activities working? What do customers think of my business? How do I compare my business with my competitors? . Who are my customers and potential customers? An Entrepreneur’s Doubts… What kind of people are they? Can and will they buy? Am I want .atthe right kinds of goods or services in offering they the best place.
.four key steps for successful venture: • Understanding the customer • Making value for the money paid by your customer • Communicating your value to your target market • Making it easy for the customer to buy.
PURPOSE • Marketing research focuses and organizes marketing information. It ensures that such information is timely and permits entrepreneurs to: Reduce business risks Spot current and upcoming problems in the current market Identify sales opportunities Develop plans of action .
Basic Types of Marketing Research • Methodologically. namely: ► Qualitative marketing research ►Quantitative marketing research ►Observational techniques . marketing research uses four types of research designs.
QUALITATIVE MARKETING RESEARCH • Generally used for exploratory purposes • Small number of respondents • Not generalizable to the whole population • Statistical significance and confidence not calculated .
QUANTITATIVE MARKETING RESEARCH • Generally used to draw conclusions • Tests a specific hypothesis • Uses random sampling techniques so as to infer from the sample to the population • Involves a large number of respondents .
.Observational techniques • The researcher observes social phenomena in their natural setting • observations can occur cross sectionally (observations made at one time) or longitudinally (observations occur over several time-periods).
Experimental techniques • The researcher creates a quasi-artificial environment to try to control spurious factors. then manipulates at least one of the variables • examples include purchase laboratories and test markets .
• Overall. 65 percent said that they were able to incorporate the research findings into their decision making process. Only 7 percent reported that they were not able to implement the results .Is Marketing Research worth the Expenses? • A recent survey of small business managers revealed that 84 percent of those having conducted formal marketing research projects in the past three years felt that the information obtained was worth the money spent.
• What topics do small business managers and entrepreneurs address through marketing research studies? .
• • • • • • • What is your target market? How big is it? Who buys your product? Why do they need it? Who pays for it? Who uses it? How do the users fix the business problem you're addressing today? • How much are they willing to pay? • Why would they buy from you? • What business problems are more important to them than this one? .
. • Sometimes managers believe that unless research provides a complete description of a situation it is of no value • The misconception that marketing research requires big dollars keeps many entrepreneurs from doing research. . • Another misconception is that you can not do research unless you are a sophisticated researcher.some common misconceptions about marketing research • Many entrepreneurs think that marketing research should only be done by a small business when they are making a profit.
Marketing Research • “marketing research is the application of scientific methods in the solution of marketing problems” David Luck. Donald Taylor .
it is done by experts. . It uses scientific methods.What is marketing research o Marketing : Buying and selling activities • Research: Systematic and complete study of a problem.
recording and analyzing of data which is used to solve marketing problems .Cont…… • So marketing research is a scientific method of collecting .
Market research .Accurate and thorough information is the foundation of all successful business ventures. provides relevant data to help some marketing challenges that a business will most likely face-an internal part of the business planning process MR involves two type data primary data and secondary data .
help you define specific problem and usually involves detailed unstructured interviews in which lengthy answers are solicited from a small group of respondents .Exploratory research and Specific research • Exploratory-open ended.Primary data • This is research you compile yourself or hire someone to gather for you • Two type.
• Specific – is precise in scope and is used to solve a problem that exploratory research has identified • Interviews are structured and formal in approach • Of the two specific is more expensive .
group interviews or focus groups are useful brainstorming tools for getting information on product ideas. • The in-depth interview.primary sources • Telephone interview. but experienced interviewers may be able to conduct more. Focused interviews are based on questions selected ahead of time. Phone interviews also can cover a wide geographic range relatively inexpensively. Used mostly by big business. while nondirective interviews encourage respondents to address certain topics with minimal questioning. These one-on-one interviews are either focused or nondirective. and purchasing decisions among certain populations. . buying preferences. • A group survey. Speed is another advantage of telephone interviews. • One of the most effective forms of marketing research is the personal interview. A rate of five or six interviews per hour is typical.
It's usually published in pamphlets.Secondary data • Secondary research uses outside information assembled by government agencies. chambers of commerce. trade publications. labor unions. and so on. Secondary sources include the following: . industry and trade associations. and newspapers. media sources. newsletters. magazines.
and publicly traded corporations. but usually involve cost factors such as subscription and association fees. often offer a lot of good information. These are frequently overlooked as valuable information sources even though more research is conducted in colleges. universities.Secondary sources • Public sources. • Commercial sources. Commercial sources include research and trade associations. These are usually free. and so on. and include government departments. business departments of public libraries. These are valuable. and technical institutes than virtually any sector of the business community. . • Educational institutions. such as banks and other financial institutions.
Marketing There are two critical marketing functions in entrepreneurial firms: • Marketing research .developing plans to price. and distribute your product .establishing the market characteristics of your firm • Marketing strategy . promote.
Entrepreneurial Market Research • Usually you have little information to go on • Data collection must be as thorough as your financial means allow • Any mistake. oversight or miscalculation can be fatal • Learn by doing .
Step 1: Establish Purpose & Objectives of Research • • • • • • • Typical research questions… What is the size of the market? Will the market grow or decline? Who are our customers? Where are they? Who are our main competitors? What price should I charge? .
books. studies & reports) • Internet • Statistics (demographic & consumer profiles.Step 2: Gather Secondary Data • Publications (newspapers. product brochures. magazines. spending patterns.) . journals.etc. government publications.
mail) Focus groups Observation Who? – Customers. industry reps. potential competitors. similar businesses.Step 3: Gather Primary Data • • • • • Interviews Surveys (telephone. trade shows/conferences .
Common Pitfalls of Marketers and Entrepreneurs Unrealistic growth expectations Preoccupation with product issues Excessive faith in the benefits of growth Minimization of competing products and services .
Resource-based Marketing Key Questions • What is our competitive advantage? • Who values our competitive advantage? • What marketing activities will help us reach our markets? .
Ways to get started .
fill market gaps Franchising Minor Entry Exploiting partial momentum small Customer sponsorship Parent company sponsorship Government sponsorship .Major and Minor Entry points Major Entry New products or services Parallel competition.
Major Entry points • New products and services – Start from the scratch • Parallel competition – Existing market and product – New setup • Franchise – Start an outlet of an existing company .
Minor Entry points • Customer Sponsorship – special contract – second sourcing • Exploiting – geographic short comes – supply shortage – underutilized resources .
Minor Entry points Parent company sponsorship – joint ventures – Licensing – spin-off Government sponsorship – favored purchasing – rule change – direct assistance .
sALES PROMOTION Sales promotion is a method used by market or expand and retain and existing market for given goods or services .
• Entrepreneurs undertake a number of activities to make customers aware of their products The main objectives of these activities To remind or inform the public about the existence or availability of the product To target a particular segment of the market To stabilize sales To increase sales through attracting new customers by making them aware of your product .
Methods of attracting customers • Advertising • Sales promotion .
entrepreneur’s products/services to customers .Advertising • Advertising refers to any form of communication about a product or idea. • It is the spreading of information about an .
The methods of advertising
• Use of the media, for example, newspapers, magazines, radio, television, billboards, posters, leaflets, etc. • Use of music, jingle bells or banners • Door-to-door advertising • Display of products outside the shop or through the window
• This refers to anything that can be done by an entrepreneur to make customers buy more of his/her goods or maintain them
Sales promotion can be carried out
•Arrange the products inside the business premises properly
•Give free samples and gift •Be polite to the customers •Talk to customers and understand what they require •Exhibit knowledge about the product/service, i.e., its uses and benefits
•Improve product quality
•Brand your product, i.e., give it a distinctive name
Importance of sales promotion
• To inform the public about the availability of a particular product/service • To stabilise sales through encouraging and attracting customers to continue buying the product/service • To increase the sales volume, as more and more customers buy the product • To target a particular market segment • To reward royal customers • To out compete rivals/competitors
Sales promotion 3 goals
• To increase immediate customer sales • To increase support among the marketers sales force • To gain the support of the trade in marketing the products
Why the companies are spending more and more money to on sales promotion
• Sales managers are under great pressure to produce result quickly • Assessment of sales promotion is relatively easy • Sales promotion strategies targets consumer, trade and the sales force • Cost for result in this industry are relatively low
• • • • • • Point of purchase Sampling Refunds Incentives Rebates Lucky dip
...etc.Trade promotion • Trade incentives • Trade deals • Point-of purchase displays Cartoons Banners Signs Price cards . .....
. reputation and employees who are familiar with all aspects of the business.Buying an Existing Business In most cases. buying an existing business is less risky than starting from scratch When you buy a business. you take over an operation that's already generating cash flow and profits. You have an established customer base.
. systems and policies--since a successful formula for running the business has already been put in place. And you don't have to reinvent the wheel-setting up new procedures.
WHEN YOU START A NEW BUISINESS YOU WILL FACE… difficulty of building a customer base marketing the new business. hiring employees and establishing cash flow. . all without a track record or reputation to go on...
Think long and hard about the types of businesses you're interested in and which best match your skills and experience the size of business employees. number of locations and sales pinpoint the geographical area where you want to own a business .THE RIGHT CHOICE looking at an industry with which you're both familiar and which you understand.
Contacting a business broker looking in the local newspaper's classified section under "Business Opportunities“ make sure there are no complaints against the business .
ASK YOURSELF BEFORE THE ACQISITION…????? Why is this business for sale? What is the general perception of the industry and the particular business. and what is the outlook for the future? Does--or can--the business control enough market share to stay profitable? Are raw materials needed in abundant supply? How have the company's product or service lines changed over time? .
footnotes and tax returns for the past three years are all key indicators of a business's health. .FINANCIAL ANALYSIS o Ask the business owner to show you projected financial statements. income statements. cash flow statements. o Balance sheets.
. fixtures. Copies of all contracts and legal documents Incorporation Tax returns for the past five years.VERIFY THE VALUE OF A BUSINESS BEFORE MAKING A DECISION TO BUY Inventory Furniture. equipment and building. Financial statements for the past five years Sales records ETC…….
such as developing products.ADVANTAGES…!!! This strategy eliminates many of the headaches involved in getting a start-up off the ground. hiring the right people and building a sound customer base gives entrepreneurs a jump on the start-up phase . less risky .a time when many new businesses fail.
SOME ADDITIONAL TIPS..) Stay in the area you know Look for the right fit Evaluate the risks Look at the firm's identity Evaluate the costs ...
you could get stuck with obsolete inventory.SHORTCOMINGS buying a business is often more costly than starting from scratch If you're not careful. uncooperative employees or outdated distribution methods .
ADVANTAGES &DISADVANTAGES OF ESTABLISHED BUSINESS .
ADVANTAGES&DISADVANTAGES OF ESTABLISHED BUSINESS • • • • GOODWILL EMPLOYEES SUPPLIER RELATIONSHIPS BANKING & OTHER FINANCING ARRANGEMENTS • LIABILITIES: TRADE CREDITORS .
ADVANTAGES&DISADVANTAGES ESTABLISHED BUSINESS PREMISES STOCK .
Equipment/ vehicles An existing business will likely have the equipment &/or vehicles & other capital items requird for the operation of the business-although it will be important to agree on the value of such of items for purposes of the depreciation that will be available to you.advantages disadvantages The equipment .it may be difficult to establish a value for each such item. .also.etc owned by the existing business may be worn out or poorly maintained.vehicles.
. • Most good business do not suddenly appear but rather result from an entrepreneur’ s alertness to possibilities.OPPORTUNITY IDENTIFICATION • It is the process by which an entrepreneur comes up with the opportunity for new venture.
technical people . • Consumers are the best source of ideas for a new venture .Sources of business opportunities • Consumers and business associates . members of the distribution system . .
business associates.• Opportunity is identified by using input from consumers . . or technical people. channel members. each opportunity must be carefully screened and evaluated.
. • Opportunity analysis or Opportunity assessment plan is a method for evaluating an opportunity which provide a basis for making the decision of whether or not to act on the opportunity.• The opportunity must fit the personal skills and goals of the entrepreneur.
.Contents of opportunity assessment plan • • • • A description of the product or service An assessment of the opportunity An assessment of the entrepreneur and the team Specifications of all the activities and resources needed to translate the opportunity into a viable business venture • The source of capital to finance the initial venture as well as its growth. . .
Business valuation • Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. .
Elements of business valuation • Economic conditions • Financial analysis • Normalization of financial statements • Income approaches .
as well as the conditions of the industry in which the subject business operates.Economic conditions • A business valuation report generally begins with a description of national. regional and local economic conditions existing as of the valuation date. .
. or other financial trends. of market multiples. etc. and to discover trends affecting the company and/or the industry over time. ratio analysis (liquidity. This permits the valuation analyst to compare the subject company to other businesses in the same or similar industry. changes in capital structure. trend analysis and industry comparative analysis.Financial analysis • The financial statement analysis generally involves common size analysis. profitability.). turnover. the valuation expert can view growth or decline in revenues or expenses. • By comparing a company’s financial statementsindifferent time periods.
It is reasonable to assume that if a business were sold in a hypothetical sales transaction (which is the underlying premise of the fair market value standard).Normalization of financial statements • Comparability Adjustments. • Non-operating Adjustments. The valuer may adjust the subject company’s financial statements to facilitate a comparison between the subject company and other businesses in the same industry or geographic location. . the seller would retain any assets which were not related to the production of earnings or price those non-operating assets separately.
benefits. The owners of private companies may be paid at variance from the market level of compensation that similar executives in the industry might command. In order to determine fair market value. perquisites and distributions must be adjusted to industry standards. the owner’s compensation. .• Discretionary Adjustments.
• And the market approach. . • The asset-based approach.Income. • The income approach. asset and market approaches • Three different approaches are commonly used in business valuation.
• The market approach determine value by comparing the subject company to other companies in the same industry. . and/or with in the same region. of the same size. • The asset based approach determine value by adding the sum of the parts of the business (net asset value).• The income approach determine value by calculating the net present value of the benefit stream generated by the business (discounted cash flow).
largely depending on reported market transactions in the equity of the firm.Estimates of business value • The evidence on the market value of specific businesses varies widely. A fraction of businesses are publicly traded. meaning that their equity can be purchased and sold by investors in stock markets available to the general public .
• Franchise & Franchisee’s perspective .
Examples of Franchised business .
ALL DEALERS ARE FRANCHISEES A dealer invests more than BUT ALL FRANCHISEES ARE NOT just space DEALERS .
associated brands and other proprietary knowledge in order to open a branch.A business established or operated under an authorisation to sell or distribute goods and services in a particular area The party in a franchising agreement that is purchasing the right to use a business's trademarks. the franchisee must also pay a portion of its profits to the franchisor . In addition to paying an annual franchising fee to the underlying company.
Many elements of the plan are standard operating procedures established by the franchisor…. .. • Most franchisors help franchisees develop a business plan. Other parts of the plan are customized to the needs of the franchisee.Business plan.
The experience of the franchisor’s management team increases the potential for success. personnel management. facility management. . Start-up assistance. Management Assistance. Franchisor provides management assistance to a franchisee. The most difficult aspect of a new business is its start-up. This includes accounting procedures.Experience of franchisor. The franchisor helps a franchisee overcome this lack of experience. etc. Few experienced managers know about how to set up a new business because they only do it a few times. This experience is often conveyed through formal instruction and on-the-job training. However. a franchisor has a great deal of experience accumulated from helping its franchisees with start-up. This experience will help reduce mistakes that are costly in both money and time. An individual with experience in these areas may not be familiar with how to apply them in a new business.
a benefit of starting with a new franchisor is the potential to grow as its business and name recognition grow. This may not be true with a new franchisor. However.The Name • Established franchisors can offer national or regional name recognition. .
Operational standards set in place by the franchisor also control quality and uniformity among franchisees. .Efficiency in operation. Franchisors discover operating and management efficiencies that benefit new franchisees.
The first is the number of franchises that are in operation. The second predictor is how long the franchisor and its franchisees have been in operation. The third is the number of franchises that have failed. including those bought back by the franchisor.Three factors will help you predict the potential success of a franchise. .
Franchisee Checklist Assessing the business type Assessing the business proposition The franchisee agreement Assessing the franchisor .
ASSESSING THE BUSINESS TYPE.It could be a product distributorship or agency which is not really a franchise but is promoted as a business format franchise and should therefore be treated with caution. IS THIS A GENUINE BUSINESS concern FORMAT Franchise territory is another important FRANCHISE? .
. Is it Exclusive or Non Exclusive? THE BUSINESS If the franchisor's company is soundly financed? Ask to see audited financial records for three years. What is ASSESSINGcost? BUSINESS included in this THE PROPOSITION FINANCING 3. What is the total cost of establishing a franchise operation? 2.1.
It should last for a sufficient period of time to allow Or not….THE FRANCHISE AGREEMENT. the franchisee to recoup his/her investment. .
749 Stores only…!!! .Which is the world’s biggest Franchise Subway with over 33.
but it is not impossible. .Financing Options for New Businesses Coming up with new the money to start a new business is a challenge. There are different sources of financing for new ventures.
Forms of Financing •Friends and Family •Borrowing from yourself •SBA •Venture capital •Traditional lenders .
Friends and family are more likely to invest in your venture because of the personal relationship. .Friends and Family Raising financial capital from friends and family is a common approach for entrepreneurs launching a new venture .
he can able to boorow against the money. .000 but not more than 50 percent of the total amount in your account.If your plan allows you to borrow against it.Borrowing from yourself The entrepreneur have a 401(k) plan. you can get a maximum of $50.
The SBA guarantee substantially lowers a lender's risk.Small Business Administration • Small Business Administration (SBA) is a great place to turn for financial assistance. making them more apt to grant a loan. While the SBA does not grant loans. they do guarantee them. .
Venture Capital • venture capitalists (VCs) raise money from outside investors for investment in new. highgrowth ventures. expecting an annual return. a VC typically takes an equity position in the new venture. With this investment. .
Traditional lenders • Many lenders will still take a chance on you if you can show them a strong business plan. and a solid credit rating. . good personal financial statements. • Proving the financial health of your company — or of your business plan.
VENTURE CAPITAL • Venture capital (VC) is a significant financial innovation of the twentieth century. . • The underlying assumption is that the entrepreneur and the venture capitalist would act together in the interest of the enterprise as ‘partners’. • Venture capital is the investment of long-term equity finance where the venture capitalist earns his return primarily in the form of capital gains. • Money for investment in innovative enterprises or research in which both the risk of loss and the potential for profit may be considerable.
• Venture capital is not the answer for all businesses in need of capital.Cont………. • Venture capital investing is all about a willingness to accept a high degree of risk in order to obtain the potential for an extremely high rate of return. But for those businesses that offer the potential of rapid growth and the potential for considerable profit. . informed investors are ready to open their check books.
a portfolio firm can initiate growth. Through venture capital involvement.NEED OF VENTURE CAPITAL There are entrepreneurs and many other people who come up with bright ideas but lack the capital for the investment. . identify problems. What these venture capitals do are to facilitate and enable the start up phase. When there is an owner relation between the venture capital providers and receivers. and find recipes to overcome them. their mutual interest for returns will increase the firms motivation to increase profits.
and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments.VENTURE CAPITALISTS A venture capitalist is a person or investment firm that makes venture investments. Venture capital firms typically comprise small teams with technology backgrounds (scientists. . researchers) or those with business training or deep industry experience.
Features of Venture Capital • Equity Participation. • Long-term Investments. • Participation in Management. Venture capitalist combines the qualities of bankers. . stock market investors and entrepreneur in one.
Stages in Venture Financing SEED START UP Additional finance FINANCE Acquisition STAGE ESTABLISHMENT FINANCE .
R&D financing for product development.SEED FINANCE Seed financing for supporting an idea or concepts. CAPITAL FOR TRANSTATING AN IDEA INTO BUSINESS PROPOSITION CAPITAL SUPPORT IN THE IMPLEMENTATION STAGE. . START UP Both the seed capital and start up capital is utilized for the full scale manufacturing and growth.
Additional finance Financing in the fledging stage For promotional expenses and distribution costs TO DEVELOP ESTABLISHMENT FINANCE To expand the market share gained in the previous stage. To expand the lifecycle of the existing products ACQUISITION STAGE Acquiring financing or another firm for further growth TO ACHIEVE AN EXIT VEHICLE FOR THE INVESTORS AND FOR THE VENTURE TO GO PUBLIC INFRASTRUCTURE MARKETING FINANCE FOR DIVERSIFICATION AND EXPANSION .
THE BUSINESS PLAN • The first step for a company (or an entrepreneur) proposing a new venture in obtaining venture capital is to prepare a business plan for the consideration of a venture capitalist. • The length of the business plan depends on the particular circumstances. . • It should use simple language and all technical details should be explained without jargons. what it wants to achieve and how it is going to do it. • The business plan should explain the nature of the proposed venture’s business.
Executive summary Background on the venture The product or service Market analysis Marketing Business operations The management team Financial projections Amount and use of finance required and exit opportunities . 2. 9. 8. 6. 5. 4. 7.Essential Elements of a Business plan 1. 3.
What does a Venture Capitalist Look for in a Venture? • • • • • Superior businesses Quality and depth of management Corporate governance and structure Appropriate investment structure Exit plan .
THE PROCESS OF VENTURE CAPITAL FINANCING 249 DEAL ORIGINATION SCREENING EVALUATION (DUE DILIGENCE) EXIT PLAN POSTINVESTMENT ACTIVITY DEAL STRUCTURING .
Venture Capital Investment Process .
Disinvestment Mechanisms • • • • Buyback by Promoters Initial Public Offerings Secondary Stock Market Acquisition by another company .
to be operated by the Industrial Development Bank of India (IDBI). The concept of venture capital was formally introduced in India in 1987. VCFs promoted by the public sector banks 4. VCFs in India can be categorized into the following four groups: 1. VCFs promoted by the state government -controlled development finance institutions 3. VCFs promoted by the foreign banks and private sector companies and financial institutions . VCFs promoted by the central (federal) government-controlled development finance institutions 2. when the government announced the creation of a venture fund.
etc. VCFs can play a significant role in the service sector including tourism. health care.Rehabilitation of sick units. publishing. Assist small ancillary units to upgrade their technologies. Provide financial assistance to people coming out of universities etc. .
Success of Venture Capital • • • • • • • • • Entrepreneurial Tradition Unregulated Economic Environment Disinvestment Avenues Fiscal Incentives Broad Based Education Venture Capital Managers Promotion Efforts Institute Industry Linkage R&D Activities .
developing the area.spareparts Hold the stock in process and pending finished goods To pay wages. salary. water. interest on funds borrowed etc Bonus to employees. entrepreneur requires finance for 6 types of activities at different phases: For consultancy.developing infrastructure Purchase of rawmaterials.feasibility study etc For purchase of land. fuel. taxes andduties .machinery. construction.R&D. power. selling expenses.Broadly.
for the establishment of a new business. modernization etc Short Term Medium Term Long Term a) Bank credit b) Trade credit c) Installment credit d) Customer advances a) Issue of shares b) Issue of debentures c) Loans from banks and other financial institutions d) Public Deposits e) Ploughing back of profits SOURCES OF FUNDS a) Issue of shares b) Issue of debentures c) Loans from financial institutions d) Ploughing back of profits . modifications etc Long term finance(For a period exceeding five years):For procuring fixed assets. seasonal or temporary working capital requirements Medium term finance(For a period from one year to five years):For permanent working capital. for substantial expansion of existing business. replacements.Different types of Industrial Finance Short term finance(For a period less than one year):To meet variable. small expansions.
Venture Capital Provides finance as well as skills to new enterprises and new ventures of existing ones based on high technology innovations Made significant contributions to technological innovations and promotion of entrepreneurship(Apple. and employing outstanding corporate achievers to professionalize the firm Available in three forms: Equity.but carries royalty and profitability of investment . Intel Microsoftetc) Assists entrepreneurs in locating. interviewing. Conditional loans and Income notes Provision for conditional loans:-no interest.
VENTURE CAPITAL: Stages of Financing SEED MONEY STAGE Small amount of financing needed to develop a product START UP Financing for a firm for marketing and product development SECOND ROUND FINANCING Funds for working capital of a firm that is in loss FIRST ROUND FINANCING Additional money to sales and manufacturing after a firm has spent its start up capital THIRD ROUND FINANCING Funds for a firm that is breaking even and is contemplating an expansion project FOURTH ROUND FINANCING Funds for firms that are likely to go public .
there was need for adopting and enlarging the institutional structure to meet the medium and long term credit requirements of the industrial sector.It was in this context that the RBI took the initiative in setting up statutory corporations at the all India and regional levels to function as the specialised financial agencies purveying team credit. . in the absence of a sufficiently broad domestic capital market..Institutional Finance With the launching of Five Year Plans.
shares. Raised by industrial concerns which are repayable within a period not exceeding 25 years ii. Raised by industrial concerns from scheduled banks or state co-operative banks .Industrial Finance Corporation of India Established in 1948 to provide medium and long term term credit to industrial concerns in India Forms of assistance: Granting loans on subscribing to debentures repayable within a period not exceeding 25 years Underwriting the issue of stock. bonds or debentures by industrial concerns Guaranteeing loans i.
adoption of indigeneous technology . Guaranteeing deferred payments due i. encouraging quality control measures in small scale sector. from any industrial concern In connection with import of capital goods from outside India In connection with the purchase of capital goods within India Subscribing to the stock or shares of any industrial concern Schemes for encouraging entrepreneurship development in tourism and self employment Subsidies for women entrepreneurs. ii.
related services. Following schemes are under operation Attracting Youth to Rural Non-Farm sector Direct Rural Industries Project (DRIP) Rural Entrepreneurship Development Programme (REDP) Marketing of rural non farm products Rural Innovation Fund (RIF) to support innovative projects in Farm. Non-Farm and Micro Finance sectors .The National Bank For Agricultural And Rural Development Came in to existence in 1982 to promote sustainable and equitable agriculture and rural prosperity through effective credit support. institution development and other innovative initiatives.
Small Industries Development Bank of India An apex level institution for promotion. and development of industries in the small scale sector SIDBI offers Financial assistance to SSI units under Technology Development and Modernisation Fund (TDMF) Scheme Assistance to small scale entrepreneurs using innovative indigenous technology and expertise Financial assistance to SSI units in textile and cotton sectors for technology upgradation and modernisation under Technology Upgradation Funds Scheme(TUFS) Short term credit to State Electricity Boards to facilitate their purchase from SSI’s and effect payment in time . financing.
Some other institutional investors Khadi & Village Industries Commision National Small Industries Corporation LTD State Industrial Development Corporations State Small Industries Development Corporations State Financial Corporations Scheduled Commercial Banks Export Import banks of India .
Package schemes of assistance Financial institutions offer a package of assistance to entrepreneurs to enable them to translate their project idea in to a raising operation A few institutional finances to entrepreneurs are: Technicians Scheme:Technically qualified proffesionalsup to Rs 7.5 lakhs Composite Loan Scheme: Both equipment finance and working capital up to Rs 50000 for artisans and rural industries Disabled Entrepreneurs:100% finance up to Rs 50000 Modernisation:For replacement/renovation of equipment for successful units which are in existence since 5 years-assistance up to Rs 90 lakh .
75 lakh towards working capital Equipment Finance: For procurement of new machinery/equipment by existing industrial units-up to Rs 90 lakh .Quality control equipment:100% assistance for setting up quality control facility by existing and new SSI units-up to Rs7.5 lakh towards term loan and upto Rs 3.5lakh Tourism related facilities: Up to Rs 9lakh available Mahila Udayam Nidhi Scheme: To set up new projects in SSI sector by women entrepreneurs Single window scheme: Provision of term loan and working capital together to upcoming small industrial units. up to Rs 7.
an entity has a working capital deficiency. Positive working capital is required to .WORKING CAPITAL Working Capital represents operating liquidity available to a business Along with fixed assets such as plant and equipment. working capital is considered a part of operating capital Net Working Capital Net working capital is calculated as current assets minus current liabilities If current assets are less than current liabilities. also called a working capital deficit.
Excess of current assets over current liabilities (Net Current Assets which is normally used) Gross or total current assets Operating Cycle Concept Consists of 3 primary activities 1. 2. Purchasing resources. 2. 2. Balance sheet concept Operating cycle concept Balance Sheet Concept There are two interpretations under this: 1.WORKING CAPITAL Concepts of Working Capital 1. Producing the product and Distributing (selling) the product . 3.
mainly. Basic formula Current Assets Current Liabilities Working Capital Requirement .WORKING CAPITAL REQUIREMENT Minimum amount of resources that a company requires to effectively cover the usual costs and expenses necessary to operate the business The basic formula for determining working capital involves only two factors: 1. Current Assets. mainly. • • 2. • Accounts Receivables Inventory Accounts Payable Current Liabilities.
WORKING CAPITAL REQUIREMENT Net Working Capital Requirement will vary from company to company and within the company it may vary from month to month It depends on: How much earnings a company has and what is the frequency of receiving those earnings What are the expenses that a company has and how frequently these payments have to be settled .
WORKING CAPITAL REQUIREMENT Working Capital Requirement can be divided in to two components for simplifying the companies calculation and to meet the requirement as much as possible: Permanent Working Capital – a constant which will be there in the operation every month and can be taken safely in to the companies working capital requirement for every month Variable Working Capital – Varies from month to month and usually shows a seasonal pattern Amount of Working Capital Variable Working Capital Permanent Working Capital Time .
prepaid expenses.WORKING CAPITAL REQUIREMENT Working Capital Requirement Calculation: [Increase in accounts receivable + Increase in inventory + Cash inflows i.e. cash in bank.e. other current liabilities] . bank loan. payment to suppliers. other current assets] Working Capital Requirement = [Increase in accounts payable + Cash outflows i.
Production policy Market conditions Technology and manufacturing policy Price level changes . 3. 5. 2.FACTORS AFFECTING WCR Factors affecting Working Capital Requirements of a Company are: 1. Nature of business Size of the enterprise Seasonality of operations 4. 6. 7.
The 5 stages of entrepreneurship Life Cycle Introduction Stage/ Start up Stage Growth Stage Maturity stage Decline Stage Abandonment / Exit Stage .
Obtaining funding or loans from financial institutions due to risk. Focus: Start-ups requires establishing a customer base and market presence along with tracking and conserving cash flow. . Trouble in attracting right staff.INTRODUCTION STAGE High setup cost for fixtures. Slow sales growth due to lack of exposure to market. fittings and stock.
CHALLENGS Choosing competitive product finding right legal structure Size and location of premises marketing strategies or promo cost sourcing finance to grow business .
GROWTH STAGE Rapid growth Increased customer awareness Diversified product range Better Management of production More employees Focus: Growth life cycle businesses are focused on running the business in a more formal fashion to deal with the increased sales and customers. .
CHALLENGES Maintain quality as output grows Develop systems to evaluate performance Managing cash flow in expanding business Improving efficiency Recruiting and delegating .
Focus: Add new products or services to existing markets or expand existing business into new markets and customer types. May work on reducing production cost to maintain profit. .MATURITY STAGE Rapid growth levels off New competition may enter Business reach maximum size Management may become stuck or satisfied with current state.
Rationalizing business operation and reducing cost. .CHALLENGES Staying responsive to consumer demands. identifying opportunity for innovation in products and services. sustaining motivation of manager and staffs. also staying competitive.
Cutting costs and finding ways to sustain cash flow are vital for the declining stage. .DECLINE STAGE Dropping sales and profit. Focus: Search for new opportunities and business ventures. Negative cash flow.
CHALLENGES Understanding the changing taste and needs of consumers. Developing new products Shifting in to new or related markets where growth opportunities exist. Orienting management and staffs towards change. New methods. new structure and new procedures can adopt. .
Look at your business operations. management and competitive barriers to make the company worth more to the buyer. Set-up legal buy-sell agreements along with a business transition plan. .ABANDONMENT STAGE Continuous loss and low sales Shutting down/selling of business venture Focus: Get a proper valuation on your company.
.CHALLENGES Realistic valuation Find a party to sell the entrepreneur ship.
Some businesses will be "built to flip".Each stage of the business life cycle may not occur in chronological order. Whether your business is a glowing success or a dismal failure depends on your ability to adapt to it's changing life cycles. Others will choose to avoid expansion and stay in the established stage. . quickly going from start up to exit.
There are six stages of an entrepreneurial venture that founders of companies will encounter. The six steps are: .
an entrepreneur needs to figure out if he/she has the conviction to withstand the fundamental issues of entrepreneurship. many entrepreneurs wait until the VENTURE stage to address it. This sounds trivial. every entrepreneur must address his/her conviction to be an entrepreneur. .Stage 1: CONVICTION No matter the stage of the business when an individual begins his/her entrepreneurial journey. In the CONVICTION stage. This can lead to grave problems. but it is the most important step in the process. however. It SHOULD be the first step.
Different stages of entrepreneurial 1) CONVICTION venture 2) IDEA 3) CONCEPT 4) VENTURE 5) BUSINESS 6) SUSTAINABLE BUSINESS .
This is also the most fun stage because the cost is zero and the excitement level high. As you will see in the next step. . however. Everyone has an idea for a business. Of course. a concept has much more structure than an idea and subsequently warrants a different concerns and decision making. the IDEA stage is the basis for every other stage so it cannot be dismissed. as an entrepreneur. you should never confuse an "idea" for a "concept".Stage 2: IDEA The IDEA stage is the easiest stage.
a concept is characterized by structure.Engagement of informal and formal advisors . you take your idea and employ a certain intellectual rigor which includes: .Development of the business model .Extensive market research . In the CONCEPT stage.Stage 3: CONCEPT As mentioned above.Conceptualization of the type of the team required to execute .
Stage 4: VENTURE This is the most challenging stage of the business and for many entrepreneurs the most fun. This investment typically comes in two forms: money and time. it is "your" money and "your" time.. . as the entrepreneur.. and those can often be significant. In most cases. The VENTURE stage is characterized by significant investment.well at least in the beginning.
the business can support itself with little outside capital. there may be unprofitable months or years. . This is the stage where you are most likely to find investors.Stage 5: BUSINESS The BUSINESS stage is where all entrepreneurs strive to be. This is the stage where you have revenues that are commensurate with your expenses. but in general. Of course.
the real challenge is for a business to outlast the involvement of its founders. however. It is typically characterized by time. Ventures that last 10+ years may be thought of as sustainable. they should strive to become a Sustainable Business. That is a more relevant definition of a sustainable business .Stage 6: SUSTAINABLE BUSINESS Although most entrepreneurs are satisfied to build a Business. There are unique challenges to creating a sustainable business and it can be defined in different ways.
REQUIREMENTS FOR A SUCCESSFUL PATENT RIGHT .
or any new and useful improvements thereof. manufacture. may obtain a patent. or composition of matter. . subject to the conditions and requirements of this title.Whoever invents or discovers any new and useful process. machine.
Requirements… Be Statutory Be New Be Nonobvious Be Useful .
and compositions of matter are patentable. • However. . articles of manufacture. machines. Statutory Requirement • The Patent Act states that processes. • Under this statute. it is clear the broadest standards for what is patentable in the entire world. there are certain "inventions" which are not patentable under the Patent Act.I.
• Electromagnetic signals. such as music. and compilations or mere arrangement of data. literary works. which are considered forms of energy and as such are nonstatutory natural phenomena .Clearly Non-statutory Items which can’t be patented… • Data structures or programs per sec -these items may be patentable when claimed in a different form to include computer-readable medium. • Nonfunctional descriptive material.
Novelty Requirement • In order for an invention to be patentable. This novelty requirement states that an invention cannot be patented if certain public disclosures of the invention have been made.ii. The statute which explains when a public disclosure has been made is complicated and often requires a detailed analysis of the facts and the law. it must be new as defined in the patent law. .
. The invention was used publicly. or offered for sale to the public more than one year prior to the filing date.An invention will not normally be patentable if: The invention was known to the public before it was "invented" by the individual seeking patent protection. The invention was described in a publication more than one year prior to the filing date.
iii. and therefore would not be granted a patent. Useful Requirement • The patent law specifies that the subject matter must be "useful. a machine which will not operate to perform the intended purpose would not be called useful. . In most cases. the usefulness requirement is easily met in computer and electronic technologies." The term "useful" in this connection refers to the condition that the subject matter has a useful purpose and also includes operativeness. that is.
but it must also be a non obvious improvement over the prior art. it must not only be novel. Nonobviousness Requirement • In order for an invention to be patentable. This determination is made by deciding whether the invention sought to be patented would have been obvious "to one of ordinary skill in the art. .iv.
AT A GLANCE…
FOR OBTAINING A SUCCESSFUL PATENT RIGHT THE INVENTION FOR WHICH THE PATENT IS CLAIMED… • 1. must be new and novel. • 2.must be useful. • 3.must relate to manufacture of things and substances which are corporeal and substantial. • 4.must be capable of industrial application. • 5. must relate to processes and products which are marketable.
• 6.Must relate to the applied arts,technology, processes,methods employed in manufacture and their manner to which they are applied in the manufacture, to the machines,apparatus and articles used in the manufacture and to the substances produced by manufacture.
PROCEDURE FOR OBTAINING A PATENT
NOT A FORMAL MATTER
Through application with all requirements as per the rules . Should be in the appropriate prescribed form. Fees should be paid along with the application. It should accompanied by provisional specification . Application should contain the name of the true and first inventor . The application shall be confined to one invention only . The application shall be either in Hindi , or in English .
STAGES OF PROCEDURE
First Stage : office objections
• The office of the controller examine the application in accordance with the procedures prescribed . • After office objections are satisfactorily complied with the controller will issue a direction that the application be kept pending for 12 months. • This time is intended to enable the applicant to re-examine his invention , check and re-check improve upon the invention and explore the possibilities , its usefulness and marketability .
Second stage : examination by examiner
After the complete specification is filed the controller will refer to examiner of the patent who examines the application thoroughly . If there are any objection the examiner of patents communicate the same to the applicant . The examiner of patents shall submit his report to the controller within 18 months from the date of reference .
Third stage : acceptance and proceedings in opposition
On receipt of the report from the examiner of the patents the controller will decide the issues acceptance of the application , if accepted the controller will direct the publication of the patent in the official gazette.
If no objections is received , controller buy an order grant the patent In case any objections are received within 4 months from the date of publication , controller will decide on the objection after giving full opportunity of making representation , adducing of evidence and hearing to all those who filed objections and applicant.
Fourth stage : sealing of patent Within 6 months from the date of order disposing off the objections in the proceedings of opposition and grant to the applicant to the patent . the applicant may apply to the controller to register the patent and grant him the patent certificate and seal the patent . . the applicant will there after will be called a patent holder or patentee.
A trademark is any sign. which indicate the origin or ownership of a product as distinguished from its quality and which others have not the equal right to employ for the same purpose. word or words. . mark. symbol.
2. It should be one by which the public can recognize the goods. 3. .LEGAL FORMALITIES FOR REGISTRATION OF TRADEMARK 1. It must not possess a flag or coat-of-arms of a foreign nation. It must not be identical with or confusingly similar to marks already in the same field. The brand of mark must be associated by the public with a definite source of supply. 4.
. term or slogan selected as a brand or trade mark must be one which can be monopolised and used and used exclusively for the identification of the owner’s goods without interference with the rights of others.5. even as it does to any other word. The public gives its own meaning to the words and terms it uses in trade. The word. proprietors of a brand or 6. and this use of a word or term cannot be controlled or restricted by the trademark.
COPYRIGHT AND ITS FAIR USE .
or a work that conveys information or ideas.INTRODUCTION "copyright is a legal device that provides the creator of a work of art or literature. the right to control how the work is used" The intent of copyright is to advance the progress of knowledge by giving an author of a work an economic incentive to create new works .
that a verbal presentation that is not recorded or written down cannot be copyrighted. original expressions can be copyrighted.WHAT CAN BE COPYRIGHTED? Tangible. This means. for example. There are three fundamental requirements for something to be copyrighted. according to the United States Copyright Office .
FIXATION ORIGINALITY MINIMAL CREATIVITY .
WHAT CANNOT BE COPYRIGHTED? Works in the public domain: Ideas are in the public domain. for example. . Government works. Blank forms. which include: Judicial opinions. can be protected by trademark law. However. slogans. or other short phrases also cannot be copyrighted. Administrative rulings. Facts are in the public domain. Public ordinances. names. Words. slogans.
. The right to perform the protected work (such as a stage play or painting) in public. The four basic protections are: The right to make copies of the work. The right to sell or otherwise distribute copies of the work. The right to prepare new works based on the protected work.WHAT DOES COPYRIGHT PROTECT? Copyright provides authors fairly substantial control over their work.
WHAT IS FAIR USE? Fair use is the most significant limitation on the copyright holder's exclusive rights (United States Copyright Office. para. 2010. the individual who wants to use a copyrighted work must weigh four factors: . 1). Instead. There are no set guidelines that are universally accepted. Deciding whether the use of a work is fair IS NOT a science.
.The purpose and character of the use: Is the new work merely a copy of the original? If it is simply a copy. used for another purpose. it more likely to be considered fair use. appeals to a different audience. Does the new work offer something above and beyond the original? Does it transform the original work in some way? If the work is altered significantly. it is not as likely to be considered fair use.
Recent case law has increasingly focused on transformative use to make fair use determinations – for a discussion of this topic see Lultschik. . para. Is the use of the copyrighted work for nonprofit or educational purposes? The use of copyrighted works for nonprofit or educational purposes is more likely to be considered fair use (NOLO. 2010. 6). 2010.
9). it is more likely to be considered fair use. Is the work factual or artistic? The more a work tends toward artistic expression. Is the copyrighted work out of print? If it is.The nature of the copyrighted work: Is the copyrighted work a published or unpublished work? Unpublished works are less likely to be considered fair use. 2010. para. . the less likely it will be considered fair use (NOLO.
2010. para. Does the amount you use exceed a reasonable expectation? If it approaches 50 percent of the entire work. it is not likely to be considered a fair use of the copyrighted work. . the less likely it will be considered fair use. 13). Is the particular portion used likely to adversely affect the author's economic gain? If you use the "heart" or "essence" of a work. it is less likely your use will be considered fair (NOLO.The amount and substantiality of the portion used: The more you use.
.The effect of use on the potential market for the copyrighted work: The more the new work differs from the original. the less likely it will be considered an infringement. it will likely be considered an infringement. 2010. it is more likely the use of the copyrighted material will be seen as fair use (NOLO. Does the new work contain anything original? If it does. Does the work appeal to the same audience as the original? If the answer is yes. 11). para.
WHAT ARE THE RULES FOR FAIR USE FOR INSTRUCTORS? Copying by instructors must meet tests for brevity and spontaneity: Brevity refers to how much of the work you can copy. Spontaneity refers to how many times you can copy and how much planning it would take to otherwise seek and obtain permission from a copyright holder .
is the rule for special works (U.S. An excerpt of no more than two pages or 10 percent. p.500 words in their entirety Special works should never be copied in their entirety. Copyright Office."Certain works in poetry. 2009. 6). prose. whichever is less. or in ‘poetic prose’ which often combine language with illustrations and which are intended sometimes for children and at other times for a more general audience fall short of 2. .
UMUC recommends that its faculty and instructors consider both the special guidelines for instructors and take into account the four factors that are used to evaluate fair use when they are deciding what and how much of a copyrighted work to use.The use of the copies should be for one course at one school.S. p. . The copies should include a notice of copyright acknowledging the author of the work (U. 2009. Copyright Office. 7).
as discussed by the U.S. 6). WHAT COUNTS AS FAIR USE? Keeping in mind the rules for instructors listed above. Copyright Office (2009. general examples of limited portions of published materials that might be used in the classroom under fair use for a limited period of time.IN GENERAL. include . and that the source(s) of all materials must be cited in order to avoid plagiarism. p.
cartoon or picture from a book. Poetry Copies of a poem of 250 words or less that exists on two pages or less or 250 words from a longer poem. graph. essay. A chart. or poem. One work is the norm whether it comes from an individual work or an anthology. periodical. . or newspaper. An article from a periodical or newspaper.A chapter from a book (never the entire book). A short story. diagram. drawing.
Prose Copies of an article. graph. p. . drawing.000 words or 10 percent of the total work. 2009.500 words or less or excerpts up to 1. Illustrations Copies of a chart. cartoon. story or essay that are 2. diagram. Copyright Office.S. 6). or picture contained in a book or periodical issue (U. whichever is less.
Copying and using the same material for several different courses at the same or different institutions.WHAT SHOULD BE AVOIDED? Making multiple copies of different works that could substitute for the purchase of books. publisher's reprints. Copying and using the same work from semester to semester. Copyright Office. or periodicals. 7). p. 2009.S. Copying more than nine separate times in a single semester (U. .
Copyright Office. 7). HOW DO I GET PERMISSION? HOW CAN THE LIBRARY HELP? The UMUC Library will assist UMUC faculty obtain permission for copyright-protected materials for use in . When you want to use a work in its entirety. especially when it is longer than 2. p.WHEN IS PERMISSION REQUIRED? When you intend to use the materials for commercial purposes.500 words (U.S. When you want to use the materials repeatedly. 2009.
Note that the Internet IS NOT the public domain. However. If you make a copy from an online source for your personal use.COPYRIGHT AND ELECTRONIC PUBLISHING The same copyright protections exist for the author of a work regardless of whether the work is in print. it is more likely to be seen as fair use. There are both copyrighted and uncopyrighted materials online. Always assume a work online is copyrighted. it is less likely to be considered fair use. an online discussion board or comment space. or any social media formats. . a blog. if you make a copy and put it online. in a library research database.
A CHAT WITH AN ENTREPRENEUR. . A PRESENTATION ON BUSINESS PLANNING AND ENTREPRENEURSHIP SWADHISTA MUSHROOMS A WOMAN ENTREPRENUER WHO HAS GIVEN A DIFFERENT DIMENSION TO ENTREPRENEURSHIP WITH HER MIDAS TOUCH AND HAS PROVED HERSELF AND BE SUCCESSFUL IN WHATEVER SHE PUTS HER MIND TO.
though they do expand rapidly by the absorption of fluids . typically produced above ground on soil or on its food source. This phenomenon is the source of several common expressions in the English language including "to mushroom" or "mushrooming" (expanding rapidly in size or scope) and "to pop up like a mushroom" (to appear unexpectedly and quickly). The standard for the name "mushroom" is the cultivated white button mushroom. In reality all species of mushrooms take several days to form primordial mushroom fruit bodies.Mushrooms – An Overview A mushroom is the fleshy. growing or expanding rapidly. spore-bearing fruiting body of a fungus. Many species of mushrooms seemingly appear overnight.
Unfortunately. most have been proven unreliable. but eating the wrong kind of mushroom can have deadly results. It's not safe to collect wild mushrooms to eat unless you're sure about what you are doing! There are many myths about poisonous mushrooms arising from folklore. Roman Emperor Claudius may have been murdered by mushrooms in a meal. In other stories about mushrooms. by whom? . said to explain how to distinguish poisonous mushrooms..Myths And Facts. and if so. Was he. There are hundreds of species of edible mushroom. or even medicinal. Many are delicious.
. Mission Accomplished : Grows mushrooms. . a typical example of diversification. provides mushroom cutlets. spawns.JANAKI SREEKUMAR – THE ENTREPRENEUR SWADHISHTA MUSHROOMS JANAKI SREEKUMAR Her Noble Vision : Bring mushroom dishes into daily menu of Malayalees. soups etc.
It was successful only after making several persevering attempts which include cooking demonstrations with mushroom recipes in clubs. A HERCULEAN TASK Slow and steady wins the race… Janaki Sreekumar entered into the mushroom business at a time when myths about the inedibility of mushrooms were prevalent among the fastidious Keralites. They have been trying really hard to get a break through in the market. They have now replaced the tinned mushrooms which was the only available form.MARKETING. The growth was slow but steady and has won the race. Even stalls were held up in fares and exhibitions and free samples of cutlets were provided. hotels and residential colonies. . She has become the only synonym for mushrooms in kerala.
travel expenses and accommodation. She despite her hectic and hasty schedule finds herself time to look after the needs of her employees. . They feel immense happiness in sharing their happiness and sorrows.. The staff strength is around 20 and one could see all happy faces. Technical staff are given more remuneration and allowances including stipends. which showcase the entrepreneur’s human resource management.A lot depends on HR…!!! A good leader.
The venture would not have flourished if she hadn't done that. Apart from fresh mushroom farming. When it all started as a hobby in a bedroom. . initial investment was not a big deal as there was only a miniscule amount involved. Janaky operates a spawn industry. which is the major source of her income and supplies value added products from mushroom and runs a vermicompost unit. For her.!! 1+1 = 11 The more profit you get the more you have to invest in the business to make it an empire. But believe me its on its threshold. Money is like manure.. You have to spread it around or it smells.Believe it or not. no one might have dreamt about launching a crore worth farming project spread over six acres.
THERE IS A MENTOR.BEHIND EVERY SUCCESSFUL WOMAN. Even at times of difficulties and hardships her husband stood by her. But it was her husband who gave her immense confidence and support with which she has setup this super structure. who is working in the Agriculture department of state government. her family members objected her tooth and nail to withdraw her business. . Once when she suffered burns while sterilizing paddy straw. Sreekumar. A MAN…!!! Her dream has become a reality only because of the back end support of her husband Mr.
• Business diversification at its very best. • Finding an opportunity in every threat. • CSR .A real entrepreneur • Recognizing a new opportunity in every challenge. • Buy-back arrangement.
• Used to visit schools and colleges for free.helps the children of her staff in their education. • Interested in charity . .CSR • Free training program being taken at her home in which Proper awareness about the pros and cons of the business.
FUTURE PLANS A take away counter : Start a counter for mushroom products like cutlets. pickles etc. mushroom masala dosas. . A Mobile van : which moves to nook and corner of city providing the same products..
“No pains. no gains.” Being an employer is always an element of risk .Advice to Budding Entrepreneurs Employees are in a comfort zone unlike employers. theory and practical are different. For mba students. Why not need to be asked by all youngsters. Acquire managerial capabilities and when you start an enterprise be one among your employees and work together and get wonderful results. The basic problem with nowadays youngsters is that they ask why and not why not. Be prepared to do hard work.
.FOR YOUR INFORMATION • She earns a monthly income of 1.5 lakhs. • She’s on the threshold of an agricultural project worth 1. etc. Directorate of mushroom research.25 crore. • She has received awards from krishi vijyana kendra(KVK).