Entrepreneurship Knowledge
Rita Bonucchi
.
This work is licensed under the Creative Commons Attribution-NonCommercialNoDerivs License. To view a copy of this license, visit
http://creativecommons.org/licenses/by-nc-nd/3.0/
Origami Consulting
2
http://www.origamiconsulting.it/
Axelle Brown-Videau
Linkedin
http://www.linkedin.com/in/axellebrownvideau
3
GetSolution
4
http://www.getsolution.it/
Biscotteria Bettina
http://www.biscotteriabettina.it/home.html
5
Chantillo
6
http://www.chantillo.com/Chantillo/index1.php
The Business Idea
Is it a dream?
How to work on ideas with entrepreneurs
7
Micro ideas for Micro business?
• What is more important, the person or
the idea?
• Coherence between person and idea
• People make the difference
8
Micro ideas for Micro
business?
• The risk of failure
• What happen if there are no ideas or too many
ideas?
• How to analyze and evaluate the business idea
9
The What, Why and How of Writing
a Business Plan
• That First Lasting Impression
– A Business Plan is often the first contact
entrepreneurs have with a funding
source.
– Funding sources, e.g., VCs, “angels”,
bankers, all review Business Plans.
• A powerful, first class Business Plan
leads to a meeting with a funding source.
10
What is a Business Plan?
• A document written for fund raising
• A document written for myself
• A description of the plans for a
business
• The “road map to success”
• All the above….
11
A Business Plan Describes…
• The business - What business are we in?
• The markets - Where is the opportunity?
• Industry forces - What are the competitive
threats? What’s our competitive edge?
• Who is the team to implement the Plan?
• What resources are available for success?
• How much capital is required?
• How much risk is to be taken?
12
Sections to a Business Plan:
general USA model
•
•
•
•
•
•
•
Executive Summary
Product or Service
Markets and Customers
Competitor/Industry Analysis
Company-Management-Operations
Financials
Appendices
13
Executive Summary Describes the
Principal Determinants for Success
• Present an overview of the niche markets your
product serves, show how you will market your
product, compare your product to competitive
products, show revenue/profit/cash flow.
• Present the amount and types of funds needed
and what is the financial return to the investor or
partner for funds/partnering.
• Present a concise Summary of the key points from
each Section of the Business Plan.
14
Appendices
Purpose: to support information presented in the Business
Plan
• Full Financial Statements
• Management Resumes
• Photos/drawings of product, brochures
• Competitive Analyses
• Industry Comparables for Investors’ Exit:
Show how others have made $$$$$ whose
performance is similar to your business model
15
What Resources are Available?
•
•
•
•
Text books on “how to”, BPlan “kits”
Consultants to write it… buyer beware!
Small Business Administration (sba.gov)
Incubators
16
BUSINESS PLAN BASICS: an overview
Mission Statement
Elevator Speech
Executive Summary
PowerPoint Presentation
Team
Sales and
Distribution
Competitive
Analysis
Market
Analysis
Intellectual
Property
Technology
Financial
Projections
Full Business Plan
Detailed
Support/Foundation
17
BUSINESS PLAN BASICS: The need to Understand
My Business
Why Write a Business Plan?
• The Business Plan is a result of a PLANNING
PROCESS
– Who are your customers?
– Why will the buy your service or product?
– What will they pay?
– How will you make and deliver the service/product
– What resources (people, money, technology) will
you need?
– Can you make money/create value?
18
BUSINESS PLAN BASICS: What Should
Be In A Business Plan?
– The Plan is a SELLING DOCUMENT
– Don't lose sight of the vision
– The excitement must come through
– The Plan should project your image
– BUT: The Plan Must Be Defensible
19
BUSINESS PLAN BASICS:
What should be in a Business Plan?
–
–
–
–
–
–
–
–
–
–
–
–
Executive Summary
The Opportunity and the Company and its Services/Products
Market Research/Analysis
Economics of the Business
Marketing Plan
Design and Development Plan
Manufacturing and Operations Plan
Management Team
Schedule
Critical Risks, Problems and Assumptions
The Financial Plan
Appendices
20
BUSINESS PLAN BASICS:
What should be in a Business Plan?
– Cover Page
• Name of Company
• Address
• Telephone/fax/email
• Confidentiality legend
• Securities law legend
• Control numbering of copies
– Table of Contents
• Put one in
• Include page numbers
21
BUSINESS PLAN BASICS:
What should be in a Business Plan?
–Executive Summary
• An Executive Summary is
– NOT an abstract of the plan
– NOT an introduction
– NOT a preface
– NOT a random collection of highlights
• An Executive Summary IS the Business Plan
in miniature
22
Assuring coherence between the
Business Idea, opportunity/environmental
restriction and personal characteristics
• How to assess the entrepreneur
• How to analyze and evaluate the business
idea
23
What means planning?
• Planning does not mean to see the
future
• Planning
definition:
to
allocate
resources by objective
24
Planning in enterprise creation
• Information
• (useful to take)
Decisions
• (to transform in)
• (do not forget)
Action
Controlling
25
Business plan
•
•
•
•
What is a business plan
How you write it
What is it for
Specifications for international BP
26
PROJECT
MANAGEMENT CYCLE
PHASE 4:
PROJECT EVALUATION
PHASE 1:
PROJECT
DIMENSION
FASE 3:
PROJECT
REALIZATION
PHASE 2:
PROJECT PLANNING
How to build the business plan
•
•
•
•
•
•
•
•
Who we are
Mission + Vision + Business idea
Research
Marketing plan
Economic and financial forecast
Technical plans
Organization
Detailed programs (who does, what does,
when, with what resources)
28
ANALYSIS
•
•
•
Who we
are
B. idea
research
INFORMATION
PLANNING
•
•
•
•
Marketing
Ecofin
Organization
Technical
plans
DECISIONS
CONTROLLING
PROGRAMMING
•
•
•
•
Who does
What
When
With what
resources
ACTIONS
Introduction to business analysis:
identifying and getting to know the
competition
•
•
•
•
Define the business
Analyze the competitors
Learn from competitors
Do we know enough
competition?
about
the
30
Competitor/Industry Analysis
• Identify competitors (domestic and foreign), potential
competitors and possible substitutes in your
marketplace. How do their products compare? How
profitable are these competitors?
• What are the Societal and Industry trends affecting your
product? Describe regulatory issues - federal, state,
local, foreign. Show potential for growth within the
industry.
• What advantages/disadvantages do you have versus
the competition: price, quality, features, maintenance
and service. How can you develop or sustain a
competitive edge?
31
Definition of the Key Success
Factors of the Business
• What have in common the success
businesses?
• What is absolutely necessary in order to
survive in this specific business?
32
Business analysis: the tools and
the technique
• Field work
– Direct monitoring of competition
– Monitoring the competition through
their promotion strategy
• Desk work
– Main sources of information
33
Main sources of information about the
competition
•
•
•
•
•
•
•
Business report
“Grey press”
Business magazines
Government papers
Directories
Vortals
………………………..
34
How to project a research
Already
available in
MIS
territories
provided
Desk
Business
analysis
Information
needed
To be
through
Field
Market
research
Existing
research
reports
Research
performed by
professionals
“do-ityourself”
Business report outline
• Sector/industry definition
• Industry evolution
• Regulations
• Sector subjects, competitors list
• Intensity of competition
• “Game rules", entry barriers and key
success factors
• Rating
• Bibliography and sources of information
36
Sources
• Business reports
• Degree papers, grey press
• Technical publications
• Business magazines
• Economic press
• Governative documents
• Company documents
• Directories
• Vortals
37
Research through Internet
• Finding information
• Monitoring the competition and studying
the industry
• Identifying and download reports
• Conducting real research programs on
Internet (web surveys)
38
Case study: a women
entrepreneur with a lot of
questions and few answers
39
The story
Everything has happened so quickly: her husband
disappearing, the bank account doing the same, the need
of money becoming higher and stronger, the decision to
start and run a business. And now? She felt lost and
helpless, she started thinking that it was too hard to start
She was very good in cooking and decided to offer a
small service of food catering.
She had spent the first weeks of work analyzing her
situation and dreaming about the company, talking
sometimes to friends about it...
In order to make the main decisions, she needed more
information about the market. Suddenly she realized she
was not sure it was “market”, was it maybe “markets”?
40
She called a former colleague, and spent a quarter of
hour at telephone. The colleague understood
immediately the situation and was willing to cooperate.
She only asked to send her the list of questions she
wanted to be answered, the list of necessary
information, so that she could suggest a research plan
and check what information was already available in
their files.
The only request: “Please, try to be analytical and
complete, because I cannot take care of it personally
and get back to you, as I am working abroad for the
next 4 weeks. I am going to send your list of
requirements to our Research Dept. as it is.”
The would be entrepreneur stopped a bit, thinking,
then started to write…..
41
•
•
•
•
•
•
•
…………………………………………….
…………………………………………….
…………………………………………….
…………………………………………….
…………………………………………….
…………………………………………….
…………………………………………….
42
Market Research
•
Structure, Contents and Tools
• Analyze information about potential
client and trends in the market
• How to get information and identify
information sources
43
Market Research
• Basic tools for a “do-it-yourself” research
• How to draw a questionnaire
• How to support the research
44
The “do-it-yourself” market research
• The entrepreneurs generally need to
adapt the data coming from the existing
researches to their own territory and to
the peculiarity of their business idea.
45
Value of the “do-it-yourself“
research
•
•
•
•
no precise statistic value
it has strong learning objectives
it means a great experience
it’s connected to the drawing up of a
marketing plan
• it’s the first step of creating the
marketing information system
46
Phases of marketing research
• to decide the research strategy according to the
information needs and to check the information already
collected through a field analysis
• to identify the research tools (questionnaire)
• to decide the sampling technique
• to decide the recruitment technique
• to set up the questionnaire
• to test the questionnaire
• to revise the questionnaire
• to interview people using the questionnaire
• to input and elaborate data
47
Tips for the questionnaire
•
•
•
•
•
•
prefer personal interviews
prefer closed questions
create closed questions through
questionnaire test
use Likert scales
neutralise questions
follow a specific scheme for
setting up the questionnaire
48
Game
• Definition of marketing (20 min)
• In 5 groups, try to define marketing, as
you perceive it now
• Not more than 20 words
• Write on big sheets
49
THE STARTING SITUATION OF AN ENTREPRENEUR WHO IS
PREPARING TO WRITE DOWN A MARKETING PLAN
WHO? WHO SHALL I OFFER
TO? WHO IS MY CUSTOMER?
WHAT
DO
MY
CUSTOMERS
WANT?
WHICH NEEDS HAVE
THEY GOT?
WHERE DO THEY BUY?
WHERE ARE THEY USED
TO REFER TO?
HOW MUCH DO THEY PAY?
(THEY ARE WILLING TO PAY,
THEY ARE USED TO PAY FOR
FULFILMENT OF NEEDS)
HOW DO THEY GET
INFORMATION?
WHAT
AFFECTS
THEIR
DECISIONS?
Template for marketing plan
SEGMENTATION
WHAT I OFFER:
PRODUCT POLICY
MY
THROUGH
WHICH
CHANNELS:
MY
DISTRIBUTION POLICY
IN EXCHANGE FOR WHAT:MY
PRICE POLICY
THROUGH
WHICH
PROMOTION:
MY
PROMOTIONAL POLICY
Product or Service
• Describe your product or service in sufficient
detail for the audience to understand its
function and differentiating characteristics.
• Pinpoint the value to your customer.
• Present current stage of development and
your plans to exploit the product fully in the
market.
• Describe the Life Cycle of your product, i.e.,
is it new, mature, a commodity? Proprietary?
Protected by patent or copyright?
52
Addressable Markets
• Demonstrate the demand for your product:
how many units can you sell at what price.
• Support how you determined the above
projections, e.g., market survey, current
buying habits.
• Define your markets – who will buy?
e.g., individuals, businesses, government,
overseas? Where are customers located?
53
Addressable Markets continue…
• Describe how you will reach these
customers, e.g., direct mail, ads, sales force,
trade magazines; describe how long it will
take from initial contact to completing a sale
to getting revenue (sales cycle).
• Present the methods you will use to deliver
your product, i.e., distribution.
• Describe how your customer will pay for the
products. Will you finance?
54
What means operations?
• A function or system that transforms
inputs into outputs of greater value
• Operations management: design,
operation and improvement of
productive system
55
Operation as a Transformation
Process
Input
•Material
•Machines
•Labour
•Management
•Capital
Output
•Goods
•Services
56
Operations Planning
• The Operations Plan describes the
production management system
• It describes what you produce and how
you produce it
• Avoid to disregard it: it helps to better
specify timing, costs and also marketing
57
Operations Planning
• This section should easier for a
producer to develop.
• If your one is a service company, you
may make decisions about servuction
(service production)
58
Operations Planning
• In the operations section of a business
plan, the business manager needs to
adequately communicate that the
business has a sound production
management strategy.
59
Operations Planning
• What are the critical operational
procedures that make will make the
business successful?
• Do you know the critical operational
functions that will determine your
business’s success?
• It is the critical function that you don’t
identify that can kill your business.
60
Operations Planning
• When starting a new enterprise, visit
similar business’s to identify critical
operational factors.
• This is particularly important if you are
starting a new or creative niche
operation.
61
Operations Planning
• To communicate the Operations plan, this section should
discuss:
– The products produced
– The production system
– Resources available and needed
– The role of row materials
– Environmental issues
– Quantity produced
– Production schedule
– Quality control systems
– Permits and regulations
62
Operations vs marketing
• Should I determine my marketing
opportunities and produce to meet the
marketing plan?
• Or should I determine my competitive
production capacity and develop
markets for my products?
63
Operations Planning
• The production plan may also address
how the business will:
– Produce value-added products
– Specialize on a product or a few products
– Diversify the product line
– Transition to a new or niche products
64
Topics of this session
• Visibility on the web
• Keywords
• Make or buy?
• Pay-per-click tools
• AdWord
• AdSense
• Google AdManager
• How to read the web results and statistics
• Exercise: define keywords
65
How Visitors Find You
Direct
Navigation
64%
Search
Engines
36%
66
Publicize your site address
Include URL in other communications:
• Business cards
• E-mail signatures
• Publicity materials
• Letterhead
• Printed documents
• Radio and TV ads
• Local newspaper web site
67
Make search engines work for you
• List your site with search engines and
directories
95% of traffic comes from Google and Yahoo!
– bCentral.com
– WebTraffic.com
68
Go find your customers
– eBay
– News groups
– Chat rooms
69
Explore other Web marketing tools
• Pay for search engine placement
– Overture.com
• Pay for ad clicks (PayPerClick)
– Google’s AdWords
• Lead generation and capture tools
– W5.com
• Track your traffic rank
– Alexa.com
• Improve your link popularity
70
Track your results
– Web hosting company statistics
– Commercial web analytic tools
• WebSideStory
• bCentral’s Site Traffic Analysis
71
Web marketing tools
• Web writing
• From paper to web
• Professional writing for a corporate blog
• Corporate Blogs
• Internet PR and corporate reputation
• Advertising on line
• The role of web marketing in a low budget marketing strategy nonconventional marketing tools (on line and off line) cross marketing
• The interrelation between the web site and other promotional
materials
72
Millennial trends include:
• The need to collaborate and to share socially
• The need to express and be creative
• They expect direct access in their communications…
they sometimes seem to have more audacity in the way
they want to access superiors than those from a more
modern perspective
• They are driven with information and content more so
than an older demographic (and can instinctively
understand when they are being “sold”
• They demand flexibility and want to be worked with on
their terms.
73
74
Blogs
•
•
•
•
Blogs first emerged in 1997
A blog created every second
Comment modes enable interaction
The “Blogosphere” is an incredible
network with massive worldwide
reach
75
Blogs – Create your own!
• Blogger.com – owned by Google
• Most popular software – FREE!
• Here’s how to get started:
– http://blogger.com
– Choose title
– Choose design
– Create
– Configure
– Share
76
Ray’s Blogs
• Techo-News – begun in 2000
– Developed as a tool to share current research with
students in graduate seminar
• Selected current readings for required critiques
• Ed Tech – begun at request of state board of ed
• Online Learning Update
– Turned into something more
– Reach and Impact
• Reflections – not just text
77
iPods and Podcasting
• iPods
– First iPod released Oct 23, 2001 – latest (?) generation
is the fifth generation
– http://www.ipodreview.co.uk/#1
– http://www.md3d.com/ (6th generation mock-up by
md3d)
• Podcasting = iPOD + broadCASTING (using blogs)
• iTunes version 4.9 and more recent aggregates the
podcasts (using RSS) and auto-transfers them to iPod
• http://audioblogger.com 415-856-0205
78
RSS
• “Really Simple Syndication” RSS 2.0
• Xml format – concisely describes a site
• Enables a variety of tools to access and
manipulate the feed
• iTunes, Sharp Reader, Yahoo, Firefox… all offer
RSS aggregation
• Have already seen dynamic web sites
• The thread that links many Web 2.0 apps
79
The web: current role in the
European marketing strategy
• The web is becoming the hub for
marketing strategy
• Web marketing is often the only affordable
marketing for SME
80
Internet impact on the marketing
mix
• Internet increases globalization
• Internet increases flexibility
• Internet can decrease the
investments
• Internet gives access to SME
need
of
81
Internet as a distribution tool
• Definition of e-commerce: from the
window to payments
• How to decide to sell on Internet
• Marketplaces and malls on Internet
82
Internet as a communication
tool
• To be or not be on Internet?
• How to choose among some popular
type of presence on Internet
83
Below the web
• Web means not only web sites, portals and
vortals
84
Low budget web marketing
tools
• E-mail marketing
• Advertising on Internet
• Search engines as a marketing tool
85
Steps to encourage visitors
•
•
•
•
Be clear on your objectives
Design your site
Get the word out!
Track your results to identify areas for
improvement
86
Be clear on your objectives
– Define your site’s purpose
– Understand your role
– Know your customers
87
Define your site’s purpose
OR
Internet
Site
Intranet
Site
• Public or private?
• Sales, promotion, entertainment, information, or
organizational transparency
88
Understand your role
Major site developer
OR
Content Contributor
89
Know your customers
• Who do you want to attract?
• Why do you want them there?
• Are they from within your company or outside
your company?
• Are they local or global?
• Do they already know about you or are you a
new player?
90
Design your site
• Find a great domain name
• Design your site with traffic in mind
• Deliver valuable and usable content
91
Find a great domain name
•
•
•
•
•
Company name
Product descriptor
Easy to remember
Easy to spell when heard
Have multiple names that point to your
site
92
Design your site with traffic in
mind
• Optimize or pack your site with keyword phrases and
meta-tags
• Add a Site Map
• Develop unique and descriptive page titles, including
keywords
• Don’t use frames
• Add useful Web parts
93
Deliver valuable content
• Keep information up-to-date
• E-mail links to documents on your site rather
than the documents themselves. Post:
– Agendas and Minutes
– Reports and Presentations
– Charts and data
• Post documents in various formats
– Onscreen and download
• Adobe Acrobat
• PowerPoint
94
Get the word out!
•
•
•
•
Publicize your site address
Make search engines work for you
Go find your customers
Explore other Web marketing tools
95
Web 2.0
• Tim O’Reilly 09/30/05 www.oreillynet.com
96
Web 2.0: the story
• Mid 90s: big portals and e-commerce (Yahoo, Amazon,
eBay, Google…)
• End of 90s: crisis of new economy
• 2000-2004: the dark
• 2005 to now:
– eBay buys Skype
– Time: the person of the year is “YOU”
• …………………………………
97
Web 2.0
What is the next BIG (or little) thing?
Web 2.0 certainly is the context of what is coming!
• It is NOT static – not the web page of the ’90s
• It is a platform that is:
–
–
–
–
Dynamic
Interactive
Engaging
Syndicated
98
Web 2.0
• Web 1.0: “commerce”
• Web 2.0: “people”
• It’s about collaboration
99
Web 2.0
•
•
•
•
•
•
•
•
The web as a platform
Collective intelligence
Data is the Next Intel Inside
End of the Software release Cycle
Lightweight Programming Models
Software Above the Level of a Single Device
Rich User Experiences
The user is in control
100
Web 2.0
•
•
•
•
•
•
•
•
Social Networking
Blogs
Digg, delicious
Flickr
You Tube/ Daily Motion
Wikipedia
Rss
BaseCamp
101
Web 3.0
• IoT
(http://en.wikipedia.org/wiki/Internet_of_Thing
s)
102
When Do We Move to the Next
Generation?
•
•
Driving forces
1. Innovators and early adopters
2. Financial Considerations (Open Source)
3. Competition (new rules9
Mitigating factors
1. Knowledge
2. Licensing commitments
3. Transition woes (the reluctant, hosting, support,
training)
103
Forecast
• This second half of the first decade
– Access, access, access – broadband via
seamless mix
– Mobility – via merged devices
– Computers shrink into enhanced cell phones
– Open source rules – 3rd party support rises
104
Enterprise 2.0?
• Is Web 2.0 useful for the enterprises?
• The Long Tail
105
Entrepreneurship knowledge
Rita Bonucchi
.
This work is licensed under the Creative Commons Attribution-NonCommercialNoDerivs License. To view a copy of this license, visit
http://creativecommons.org/licenses/by-nc-nd/3.0/