Being a Successful Business Manager- Entrepreneur
A Guide for Preliminary Decision Making for People Considering Starting Up a New Business or Making a Major
Change in an Existing Business
Business Creation, Attraction, Retention,
Expansion
• -- Evaluate Community
• -- Plan, initiate and carry out community changes
• -- Assist manager-entrepreneurs considering
 Creating a new business in the community
 Moving a business to the community
 Strengthening an existing business
Feasibility analyses of new business ideas should
be as realistic as possible.
Failed businesses do not benefit communities, and
they certainly do not benefit their owners and
employees.
Persons who start new businesses and make big
changes in existing businesses need the skills
and attributes of both managers and
entrepreneurs.
These people need to be manager - entrepreneurs.
Managers direct the use of a business’ physical,
financial and human resources to accomplish
the goals toward which a business is directed.
Managers need:
-----
Production skills.
Marketing skills.
Organizational and human resource skills.
Financial skills.
An entrepreneur seeks out opportunity, sizes up
its value, then seeks out the resources to take
advantage of it.
Creativity
Entrepreneurs need:
Passion for what they do.
-- Creativity and ability to
innovate.
-- Willingness and capability for
taking risks.
--
Both managers and entrepreneurs need:
-- Initiative.
-- Abilities to work well with and influence
others.
-- Ability to take charge of things.
-- Perseverance.
-- Abilities to organize and plan.
Personality Traits of ManagerEntrepreneurs
(How well do they fit you?)
(Worksheet 1)
Personal and Family Considerations for
Manager-Entrepreneurs
(Worksheet 2)
Entrepreneurs tend to be
creative people.
Lots of Ideas.
Often more than they
can carry out.
• New or Expanding Business.
• Lots of Ideas for Products.
• Can’t do them all.
• Focus, Focus, Focus!!
• Focus, Focus, Focus!!
1. Make a list of products.
2. “Check” those you know
•
you can produce.
3. “Check” those you are pretty sure you
can sell.
• --Look for “double checks.”
(Worksheet 3)
• Market before you produce!
• Marketing is everything you do to ready your
goods and services for the marketplace.
•
•
Marketing is about customers
and customer needs
• –not about products.
•
Products are planned and produced only to
meet the needs of customers.
• Market before you produce!
•
•
Think about customer needs.
Think about –
o Product Characteristics
o Competition
o Place (where are customers, competition,
products?)
o Pricing
o Packaging
o Promotion
(Worksheet 4)
Positioning Your Firm
How your firm is perceived by
customers relative to their needs
and relative to competition is
referred to as your position in the
marketplace.
A Position to Avoid
• Stuck in a commodity market
where
• Firms are “price takers”
• Firms Must reduce prices to compete
• Small firms are disadvantaged
• No room for any firm to “shine”
A Special Niche for Your Firm
Different from competitors in minds of
customers
Insulated from price competition
How to make your firm different
(special)
•
•
•
•
•
•
•
Special quality
Special selection or variety
Special processing
Special service
Special information available with products
Special location
Special convenience
(Worksheet 5)
• Product Pricing
•
Estimate - - • Price at which you will sell product
• Quantity of product you will sell
• Expected annual revenues from
sales.
(Worksheet 6)
Estimate Costs of Production
1. List all steps in production process.
2. Develop cost estimates for each step.
• Check with input suppliers.
(Worksheet 7)
• Estimate Costs (cont.)
• Consider costs of capital items.
• Consider variable costs.
• Include reasonable rates for family labor
(including your own).
(Worksheet 7)
Estimating costs of production
can be complicated.
You may have to redo the job
several times to complete
preliminary estimates
Compare
• Expected Revenues
• And
• Expected Costs
(Worksheet 7)
So you still think your idea is a good one?
Then it is time to develop a comprehensive
business plan!
Developing a
Comprehensive Business Plan
This will take 50 or more hours and is best
done over a 10 to 15 week period.
Developing a Comprehensive Business Plan
is a lot of work.
But you are considering risking
o your life savings.
o Your kid’s college educations.
o Your marriage??
HELP IS AVAILABLE!
The purpose of this
Guide for Preliminary Decision Making for People
Considering Starting Up a New Business or
Making a Major Change in an Existing Business
Is to help you decide if you are ready to develop a
full comprehensive business plan related to your
business idea.