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• Entrepreneurs discover an entrepreneurial
opportunity when they find a compelling solution
to an unsolved problem or unsatisfied need.
• The first step in an entrepreneurial venture is to
identify a real opportunity.
• Second step is to create a plan to address that
opportunity.
• Third step is to execute that plan.
• Planning is the management function of deciding
what will be done and how it will be accomplished. To
increase a venture's success rate, an entrepreneur
should develop comprehensive plans for all aspects
of the business before taking action.
• Two factors that an entrepreneur should consider
during the planning process are the business's
financial needs and the business's location.
• To implement a process is to take action.
• Controlling is the management function that monitors the
work effort of the employees
• Distribution – Marketing function that moves the product to
market. This function is responsible for moving, storing,
locating and transferring ownership of goods and services.
• An entrepreneur considers venture location and
financial needs during the _____________________
process.
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Distribution
Controlling
Implementation
Planning
• An entrepreneur uses many tools to plan a new venture. These
tools help an entrepreneur to develop a comprehensive
business plan, which includes information about sales. Banks
usually require an entrepreneur to provide them with a
business plan when applying for a loan.
• Business planning is the process of setting goals,
explaining the objectives and then mapping out
a document to achieve these goals and
objectives.
• Effective business planning is
critical to long-term success
and the ability to raise capital
and grow successfully.
• Effective business planning
requires a considerable
amount of time
Business Plan
A proposal that describes
a new business.
It is presented to potential
investors and lenders.
• A well-written Business Plan lays out the best growth path & strategy,
as well as the rationale for the selection of the strategy over other
alternatives.
• A Business Plan is the explanation of:
• why the plan for building the company makes sense,
• what resources it will need to implement the vision,
• who the team will be that will have the skills and leadership to
execute the vision, and what path they will follow to get there.
• Entrepreneurs must consider a number of different
issues when planning their businesses. Areas of focus
during entrepreneurial planning include operations,
finance, law, the market, etc.
• Includes all processes involved in
producing and/or delivering the product
or service to the customer.
• Status of product development
• Equipment, inventory, production
• Time & money needed
• Distribution plans (Channels of
Distribution)
• Direct channel – delivery directly to the
customer
• Indirect channel – product sold to someone
before it reaches the customer (wholesaler)
• Operational issues involve the day-to-day activities for
continued business functioning. For example, an entrepreneur
must determine the way in which the business will produce
goods or services for customers. (Production Process)
• The target market and direct competitors are market
considerations that entrepreneurs face when planning their
new ventures.
• The source of financing for the business is a financial
consideration.
• A sales forecast is a prediction of sales over a specific time,
usually on a monthly, quarterly, and annual basis. It is
important to forecast sales so that the entrepreneur can meet
product demand.
• Marketing objectives are the goals that a firm seeks to reach
with its marketing plan.
• A promotional budget is the amount of money a business
plans to spend on promoting its goods and services during a
certain time. An inventory report provides information about
the company's stock on hand.
• How your company makes its customers
aware of its products or services
• Market segment
• Pricing policy
• Company image
• Marketing strategies
• Promotional plan
• Marketing budget
• Presents the forecasts for
the future of the business
• Includes assumptions made when
calculating your forecast figures
• Sales Forecasts
• Usually in the form of
financial statements
• The _____________________ is a tool that an entrepreneur
developes to project sales for a new business venture.