This action might not be possible to undo. Are you sure you want to continue?
Prior knowledge of market & Consumer Problems
OUTCOME Successful Opportunity Recognition
Successful Opportunity Recognition
Feasibility Analysis Study
Product Planning & Development
Generate your idea 5 .
Product Innovation Process Innovation Innovation Life Cycle Detailed Discussion 6 .
+ v e Net Cash flow A B C D E F G E F G _ v e C1 – Concept Stage C2 – Procurement Stage C3 – Pilot Product/ Service development Stage C4 – Test Marketing Stage C5 – Production Stage C6 – Introduction to Market Stage A : Opportunity Occurs B : Idea Generation C : Commencement of Project D : First group of customers is satisfied E : Huge Publicity F : Entry of Competitors G : Break Even Point H : Market Leader I : Starting of Maturity J : Retrenchment or Reviving 7 .
Why we need them? 8 .Role of Business Incubator 1. What is Business Incubator? 2.
What is Business Incubator? 2.Role of Business Incubator 1. Why we need them? 9 .
Just born Baby Entrepreneur Incubator Business Incubator Incubator Incubatee 10 .
Objectives of these Incubators Nature of these Incubators Developing Profitable Enterprises. NGO – Government financed Private – Self financed 11 . Create Jobs Raise the awareness of Potential Entrepreneurs. Success measures number of companies incubated and their being successful. Create ecosystem conducive for entrepreneurship.
ICT (Information and Communication Technology) services Office space Shared workshops Financial management/accounting services Linkages to financiers. Loan and Loan guarantee Incubation and Business Development: Business information Business management and development advisory services Incubation program for non-resident clients (virtual incubation) Incubation program for resident clients Mentoring/coaching and mentoring Pre-incubation services International Business Services: Help entering particular markets Networks and Synergy: Networking events Referrals to business professionals Technology Transfer: Help with commercializing technology Help with intellectual property/patent advice Other: Facilities also includes shared resources. 12 . Angel/ VC/ Loan funding. Strong support for access to business network.
Some Business Incubators in India Name Society for Innovation and Entrepreneurship (SINE) Technology Business Incubator (TBI) Place IIT Bombay Web site www.jssstepnoida.fitt-iitd.sineiitb.org www.org Rural Technology and Business Incubator (RTBI) Science and Technology Entrepreneurship Park (STEP) IndiaCo Centre (for profit) JSSATE Noida Pune www.indiaco.org IIT Delhi www.com 13 .
To Develop Cluster Through – NIESBUD. Ahemdabad Various NGOs Example – Firozabad – Bangles Muradabad – Brass Pilakhwa – Textile Meerut – Sport goods Saharanpur – Wooden Khurja – Ceramic Agra – Petha Chamoli – Bee Keeping 14 . Hydrabad IIE. Noida NIMSME. Guwahati EDI.--.CFC (Common facility Centre) GOI.Sfurti Scheme --.
Case Study and Discussion 15 .
Feasibility Analysis Business Plan Feasibility of your business plan 16 .
• Idea Generation • Feasibility Study • Business Plan • Final Project Report 17 .
What is a Feasibility Study? •A feasibility study is an analysis of the viability of an IDEA through a disciplined and documented process of thinking through the idea from its logical beginning to its logical end. 18 . •A feasibility study provides an INVESTIGATING function that helps answer “Should we proceed with the proposed project idea? Is it a viable business venture?” •A feasibility study should be conducted to determine the viability of an idea BEFORE proceeding with the development of a business.
What is a Business Plan? •A Business Plan summarizes the PLAN OF ACTION after a course of action has been determined through the ‘Feasibility Study’ •A Business Plan provides a Planning function •A Business Plan outlines the actions needed to take the proposal from “idea” to “reality” •A Business Plan tells How your business will be created and Why it will be successful? •A Business Plan provides a road map for strategic planning 19 .
Why do a Feasibility Study? •Provide a thorough examination of all issues and assessment of probability of business success •Give focus to the project and outline alternatives •Narrow business alternatives •Surface new opportunities through the investigative process •Identify reasons NOT to proceed •Enhance the probability of success by addressing and mitigating factors early on that affect the project •Provide quality information for decision making •Help to increase investment in the company •Provide documentation that the business venture was thoroughly investigated •Help in securing funding from lending institutions and other monetary sources could 20 .
Acquisitions 21 .Why to make a Business Plan? •Put the Pieces Together—Do the pieces fit together in a logical manner? •Create a Blueprint for Action •Focus Founders and/or Management Team •Obtain Financing •Attract Equity Investment •Attract Key Managers and Employees •Obtain Contracts •Create Joint Ventures. Mergers.
containing detailed analysis of all best possible factors on date. –Operational Feasibility •“Will it work?” how? –Technical Feasibility •“Can it be built?” how? –Marketing Feasibility •“Can we market the product?” how? –Economic Feasibility •Will it make economic sense if it works and is built?” how? •“ Will it generate profits?” how? –Financial Feasibility •“How to arrange required fund? 22 .What is included in a Feasibility Study Report? A feasibility study report should be completed in all respective manners.
What is included in a Business Plan?
A Business Plan should be brief, concise & straight to the point. Main Requirements May Include –Industry Description –Market Size –Customer Base –Competitive Advantage –Business Location –Three years of Financial Projections –Monthly Tracking of First Year Financials –Management Experience and Profile –Personal Statement of Affairs –Other Sources of Cash, if any
Feasibility Study Vs. Business Plan •Feasibility study (after idea generation) answers the bottom line question —Is this venture going to make money?
•Feasibility study outlines and analyzes several alternatives or methods of achieving business success.
•Feasibility study is conducted before a business plan.
•Business plan is prepared only after the venture has been deemed to be feasible.
•Business plan deals with only one alternative or scenario that is determined to be the “best” alternative. •Business plan considers the management side—goals and objectives of the planned business venture.
customers).Technical Feasibility Crucial technical specifications Design Durability Reliability and standardization Engineering requirements Machines Tools Instruments Product safety Product development Blueprints Models Work flow Product testing Lab testing Field testing Plant location Desirable characteristics of plant site (proximity to suppliers. environmental regulations 26 .
impact of promotional efforts. price differentiation 27 .g..Marketing Feasibility Market potential Identification of potential customers and their dominant characteristics (e. required distribution points (warehouses). buying habits) Potential market share (as affected by competitive situation) Potential sales volume Sales price projections Market testing Selection of test Actual market test Analysis of market Marketing planning issues Preferred channels of distribution. packaging considerations. income level. age.
Financial Feasibility Required financial resources Fixed assets Current assets Necessary working capital Available financial resources Required borrowing Potential sources for funds Costs of borrowing Repayment conditions Operation cost analysis Fixed costs Variable costs Projected profitability 28 .
Operational Feasibility Required skill levels and other personal characteristics of potential employees Managerial requirements Determination of individual responsibilities Determination of required organizational relationships Potential organizational development Competitive analysis 29 .
Summary of feasibility study Questions to be answered after study 30 .
Summary of Feasibility Study Basic Feasibility of the Venture 1. Where are these customers located. and how will they be serviced? 31 . What are the competitive advantages of the companies already in business? 3. Is it legal? Competitive Advantages of the Venture 1. What specific competitive advantages will the product or service offer? 2. How will the initial competitive advantage be maintained? Buyer Decisions in the Venture 1. Can the product or service work? 2. and how many customers are there? 3. Who are the customers likely to be? 2. How are the competitors likely to respond? 4. How much will each customer buy.
agents. How much will be spent on advertising and selling? 2. How important is location. direct mail? 7. What share of market will the company capture? By when? 3. retail.) Marketing of the Goods and Services 1. Can any orders be obtained before starting the business? How many? For what amount? total 32 . How will prices be set? How will they compare with the competition’s prices? 5.Summary of Feasibility Study (Contd. What are the sales targets? By when should they be met? 8. What distribution channels will be used—wholesale. and how will it be determined? 6. Who will perform the selling functions? 4.
How will returns and servicing be handled? 9. clearances. Have adequate lease arrangements for premises been made? 5. How will quality be controlled? 8.Summary of Feasibility Study (Contd. Will the company make or buy what it sells? Or will it use a combination of these two strategies? 2. How long will delivery take? 4. or insurance exist? How will they be resolved? 7. Will the needed equipment be available on time? 6. How will pilferage.) Production of the Goods and Services 1. Are sources of supplies available at reasonable prices? 3. waste. and scrap be controlled? 33 . spoilage. Do any special problems with plant setup.
Summary of Feasibility Study (Contd. lawyer.) Staffing Decisions in the Venture 1. Who will have to be hired? By when? How will they be found and recruited? 3. or other advisers be needed? 4. How will competence in each area of the business be ensured? 2. What records will be needed? When? 2. Will any special controls be required? What are they? Who will be responsible for them? 34 . Will special benefit plans have to be arranged? Control of the Venture 1. How will replacements be obtained if key people leave? 5. accountant. Will a banker.
What will be needed from the bank. and how does it compare with the rest of the industry? 7. Which assumptions in the financial forecasts are most uncertain? 6. and what is the bank’s response? 35 . Where will the money come from? What if more is needed? 5. How much will be needed for development of the product or service? 2.Financing the Venture 1. or sales. What will be the return on equity. How much will be needed for setting up operations? 3. How much will be needed for working capital? 4. When and how will investors get their money back? 8.
Data Sources for a Feasibility Assessment Data required for a feasibility study can come from primary or secondary sources. Collection of primary data can be expensive and time consuming. and government agency reports 36 . statistics of industry associations. –Primary data can include formal interviews and surveys. –Secondary data can include industry and trade publications.
Feasibility Study Business Plan Starting the Venture Success Failure good Quality work of feasibility study and business plan bad 37 .
success good Quality work of feasibility study and business plan poor 38 .
Feasibility of your business plan 39 .
Legal Issues for a Entrepreneur 40 .
Intellectual property rights • • • • Patents . 41 . Trade secrets. Copy rights. Trademark.
Check legal expertise for new venture.Lawyer • • • • For legal advice. Fee to be paid.( one time or retainer ship) Option to be an employee… 42 .
Documentations. claims etc) 43 . International patents. Design patents. description. Plants patents. (Application.Patents • • • • • Utility patents.
• Insurance. • Contracts (conditions) 44 . • An arrangement between 2 parties where-in one party has proprietary & the other over information . process. • Product safety & liability.Licensing. technology rights.
Patent documentation. 45 .
Legal Environment & Entrepreneurship • Entrepreneurs are not supposed to be lawyers or have legal expertise but be sufficiently knowledgeable about legal concepts that impact businesses • Review laws that relate to – Inception of the venture – Growth & continuity of the venture 46 .
lectures. machines. products. music. license etc. plants. sound recording . periodicals. might have already been done) – Books. & improvements in already existing items – Protection for 14 years – Temporary monopoly to encourage creation of new ideas – Can sell. plants. motion pictures. art. dramas. chemical compounds. computer programs 47 . proposed for 70 years. • Copyright – Protection of literary & artistic productions (60 years.Legal Environment & Entrepreneurship • Patents – Processes.
motto identified with a company’s product (s) 48 .Legal Environment & Entrepreneurship • Trademarks – A distinctive name. symbol. mark.
Public Ltd) 49 .Entrepreneurial Organizations & Legal Forms • Three primary legal forms – Sole Proprietorship – Partnership – Corporation (Pvt Ltd.
Entrepreneurial Organizations & Legal Forms • Sole Proprietorships • Advantages ??? 50 .
control Freedom from Corporate business taxes (taxed as individual tax payers) 51 .Entrepreneurial Organizations & Legal Forms • Sole Proprietorships • Advantages – – – – – – Ease of formation Sole Ownership of profits Decision making & control Flexibility Relative Freedom from Govt.
Entrepreneurial Organizations & Legal Forms • Sole Proprietorships • Disadvantages??? 52 .
Entrepreneurial Organizations & Legal Forms • Sole Proprietorships • Disadvantages – – – – – Unlimited Liability including personal assets Lack of continuity Less Available capital Obtaining long term debt relatively difficult Relatively limited viewpoint & experience 53 .
active or silent) – Contributions of partner – Division of profits and losses – Draws or salaries – Death of a partner clauses – Release of debts – Business expenses handling – Arbitration – Etc.Entrepreneurial Organizations & Legal Forms • Partnerships • Articles of partnership are usually executed and contain – Name. purpose. – 54 . – Duration of agreement – Character of partners (general or limited.
Entrepreneurial Organizations & Legal Forms • Partnerships • Advantages ??? 55 .
Entrepreneurial Organizations & Legal Forms • Partnerships • Advantages – – – – – Ease of Formation Direct Rewards Growth & Performance facilitated (more capital & skills) Flexibility Relative freedom from Governmental control 56 .
Entrepreneurial Organizations & Legal Forms • Partnerships • Disadvantages?? 57 .
can sign any contracts and obligations) 58 .Entrepreneurial Organizations & Legal Forms • Partnerships • Disadvantages – – – – Unlimited liability at least of one partner Lack of continuity Relative difficulty in getting large sums of capital Bound by the acts of just one partner (general.
Entrepreneurial Organizations & Legal Forms • Partnership Success – Partnership Attributes • Commitment • Coordination • Trust & Interdependence – Communication Behavior • Quality • Information Sharing & Participation – Conflict Resolution Techniques • Persuasion & Smoothing • Arbitration & Joint Problem solving 59 .
Entrepreneurial Organizations & Legal Forms • Corporations • A separate legal entity apart from the individuals who own it • Advantages ???? 60 .
Entrepreneurial Organizations & Legal Forms Advantages • • • • • Limited Liability Easy Transfer of ownership Unlimited life Relative ease of securing capital Increased ability & Expertise 61 .
Entrepreneurial Organizations & Legal Forms • Corporations • Disadvantages ??? 62 .
Entrepreneurial Organizations & Legal Forms • Corporations • Disadvantages – – – – – Activity Restrictions (Limited by Charter) Lack of participation for minority stockholders Regulation Organizing expenses Double taxation (on corporate profits as well as individual income) 63 .
Entrepreneurial Organizations & Legal Forms • Franchising (Franchisee & Franchisor. will be one of the earlier discussed forms) • Advantages – – – – Training & Guidance Brand Name Appeal Proven Track Record Financial Assistance 64 . being shared for its uniqueness.
Entrepreneurial Organizations & Legal Forms • Franchising • Disadvantages – Franchisee Fees – Control exercised by the franchisor – Unfulfilled promises by some franchisors 65 .
Legal Environment & Entrepreneurship • Entrepreneurs are not supposed to be lawyers or have legal expertise but be sufficiently knowledgeable about legal concepts that impact businesses • Review laws that relate to – Inception of the venture – Growth & continuity of the venture 66 .
lectures. music. sound recording . periodicals. computer programs – HANDOUT: Post Internet Copyright protection 67 . art.Legal Environment & Entrepreneurship • Patents – Processes. plants. might have already been done) – Books. plants. license etc. proposed for 70 years. chemical compounds. • Copyright – Protection of literary & artistic productions (60 years. machines. dramas. motion pictures. products. & improvements in already existing items – Protection for 14 years – Temporary monopoly to encourage creation of new ideas – Can sell.
motto identified with a company’s product (s) – HANDOUT: 68 . symbol.Legal Environment & Entrepreneurship • Trademarks – A distinctive name. mark.
Entrepreneurial Organizations & Legal Forms • Franchising • Disadvantages – Franchisee Fees – Control exercised by the franchisor – Unfulfilled promises by some franchisors • Case 12.2 69 .
Entrepreneurial • Marketing Research 70 .
Entrepreneurial .Marketing Research • Marketing Research questions that you need answers for – Market • Do you know about the buying habits of your target market • Do you know about the repeat purchase behavior • Can you plot your sales month by month – Product • Have you tested the market acceptability of your offering • Have you tested the price elasticity of your offering – Advertising • Is your advertising reaching the right target • Is it more effective in comparison to your competitors 71 .
Entrepreneurial .Marketing Research • Inhibitors to marketing research – Cost – Complexity – Irrelevancy (in the mind of entrepreneur) 72 .
Marketing Research • 3 Marketing philosophies of entrepreneurs – Production driven – Sales driven – Consumer driven • Depends on – Competitive pressure – Entrepreneur’s background – Short term focus 73 .Entrepreneurial .
) & Impulse goods – – – – Shopping goods (spend time on comparing prices & specs) Specialty Goods (customers make a special effort to find & purchase) Unsought Goods (encyclopedias etc.Entrepreneurial -Marketing Research • Entrepreneurs need to know distinctly their offering type – Convenience Goods • Staple goods (food etc.) New Products 74 .
Entrepreneurial Marketing Research • Marketing Stages for Growing Ventures – – – – Entrepreneurial Marketing Opportunistic Marketing Responsive marketing Diversified marketing 75 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.