ENTREPRENEURSHIP

ENTREPRENEURSHIP

Entrepreneurship, which is a French word, means, one who undertakes innovations, finance and business acumen in an effort to transform them into economic goods and fortune. The most obvious form of entrepreneurship is that of starting new business. Starting a new business can be challenging because the entire venture is pestered with risk. The primary aim of business is not just about making profit but about creating value and wealth and also recognizing and meeting needs in society.

If you own a business, what you want is to be successful because success is a good thing. But while you’re working toward growing your business you have to make sure you manage that growth.

You need to be prepare to handle increase in sales or order that comes with successful marketing strategy resulting in higher demand. You want to be prepared for a lucky break. If you don’t do this right, you could become a victim of you own success. To avoid this, you must ensure your supply chain does not suffer even a minor breakdown. Ensure your customers are satisfied and all potential threats to the survival of your business are effectively analyzed.

1.GROWING AND MANAGING YOUR BUSINESS

Growing your business isn’t just a worthy goal; growing your business is a necessity for its survival and your economic well-being.What can you do to get your business beyond the bare sustenance level?All of these ways of growing your business have been successfully used by other businesses and with some planning and investment,will work for you.

Penetrate your existing market:
The first thing that comes to mind when thinking of growing your business is getting new customers. But the customers you already have are your best bet for increasing your sales.

Ask for referrals:
Getting new customers is another new approach to growing your business. One of the easiest ways to do this is to ask your current customers for referrals. But notice the verb. Doing a great job and just assuming that your customers are passing the word isn’t going to do much to increase customer base; you have to actively seek referrals.

Innovate your product or service:
Discovering and promoting new uses for your products and services is a great way to both get existing customers to buy more and attract new customers.E.g Volkswagen Beetle complete with more leg room and air-conditioning; this save the product from disappearing from the market.

Extend your market reach:
There are severals ways of growing your business by making your product or service available to new pool of customers. The most obvious is to open stores in a new location or town. New locations can also be virtual, such as a website with an online store. Another approach is to extend your reach through advertising.





Participate in trade shows:
Trade shows can be a great way of growing your business. Because trade shows draw people who are already interested in the type of product or service you offer, they can powerfully improve your bottom line.

Conquer a niche market:
Remember the analogy of the big fish in the small pond? That’s essentially how this strategy for growing your business works. The niche market is the pond; narrowly defined group of customers.

Contain your costs:
Surprised? Bear in mind that when we’re talking about growing your business, we’re actually talking about growing its bottom-line. And the difference between pre-tax and post-tax money can make this very effectively growth strategy. There are two approaches to cutting costs: Liquidating your loser products and improving your inventory turnover.

Diversify your product or services:
The key to successfully growing your business through diversification is similarity. Focus on related needs of your already established market or on market segments with similar needs and characteristics.

Franchising:
Expanding into international markets can also be a powerful boost to your company’s bottom line

2. BECOMING A SUCCESSFUL ENTREPRENEUR.

It is one thing to grow your business; it is another thing to guard it against bankruptcy. Many businesses grew very well but some eventually went under for the following reasons;

1. Lack of financial control

2. Lack of meeting delivery times.

3. Lack of good public relationship between workers and customers or clients.

4. Avoid boughed down bureaucracy and inefficiency due to expansion

5. Strategize against decade virus in business.

6. Avoid producing substandard goods and inefficient services to the public.

7. Replaced obsolete machines, equipment and be trained in the latest techniques in your discipline or business.

8. Be computer literate.

9. Attend workshops and seminars relevant to your business.

10. Do not abandon your profession, start from the known to the unknown.



11. Set targets and goals for development plans 2years, 3years, 5years etc.

12 Do not compromise honesty and transparency.

13 Do not eat up your capital and profit together, if you do you are already on your way to bankruptcy.


3. GOVERNING YOUR BUSINESS

When you are growing your business (technical input) guard your business (efficiency in service and product delivery) then you must govern the business (human and public relation management). It is confirmed in life that your attitude is closely connected to your altitude. The level of progress you make in life is a function of your human relationship, all other things being equal.

To govern your business successfully you must consider the followings:

There must be resumption and closing time.

Ensure your organization including you have good public relation attitude to your clients.

There must be guiding principles and policies regulating your conduct and workers.

There must be no sentiments in discipline of erring workers yet fair play and reward for excellence should not be overlooked.

Avoid running business on credit.

Avoid partnership with people that are inefficient and never keep to time of resumption to work or delivery of goods and services to customers.

If you employ or in partnership with family members in business draw the boarder line between family and business.

CONCLUSION

This write up may look very comprehensive to understand at a one-off read and apply. It should not discourage you but you must take time to digest it prayerfully and systemmatically star to apply the methods provided here. Growth may not be automatic but as you consistently work with these tips you will notice great progress and steady growth.

FINANCIAL STABILITY IN BUSINESS PLAN

TIPS FOR FINANCIAL STABILITY AND SUCCESS.

Below are tips for developing skills for financial stability.

…Make savings automatic:

Make it your first bill of payment. Set aside an amount automatically transferred from your checking account to savings (try an online savings account). Don’t even think about it. Just make sure it happens, each and every payday.

…Control impulse spending:

Impulse spending are the biggest problem for many of us. We don’t seem to control our expenditure on what we eat, shopping and online purchases. This drain our pulse and leave us penury for the rest of our life.

…Evaluate your expenses and live frugally:

Try the one month tracking of your expenses, then evaluate how you are spending your money and see what you can cut or reduce.Decide which of the expenses are necessary and place each on priority list.

…Invest your future:

Plan for the future as early as possible. No matter how young you are. Is important, even if you think you can always plan for retirement later, do it today. The growth of your investment we be great if you start investing in your 20s.Start increasing your 401(k) to the maximum of your company’s, if that available to you. Start now!

…Keep your home secure:

The first step is to save for emergency fund. If you have a family or dependent, you should get a life insurance and make a will as soon as possible!

Business plan blue print

YOUR BUSINESS PLAN:

1.       Introduction  and summary of business plan:

·         Purpose of the plan

·         Business and history of the company

·         Major customers

·         Summary of income statements

·        Address and telephone number

2.         The company-its industry and objective:

·         Industry background.

·         Corporate short and long terms objectives.

·         Company size and market share.

·         Expected rate of profitability.

·         Strategies to reach objectives.

3.         Products and Services:

·         Principal products and services.

·         Proprietary position and potential.

·         Product development.

·         Trademarks and royalty agreements.

4.         Market:

·         Assessment of market size, history, market segments and product position.

·         Cost/benefit of the product.

·         Market pricing and company strategy.

·         Evaluation of competition, customer service, lead time, price, terms, location and product quality.

·         Marketing strategy defined; how and why sales will be made.

·         Description of type and size of customer base, relationship and percent of total sales with major customers, stability and special terms.

·         Product distribution and sales force.

·         Advertising and promotion approach.

·         Product or product-line profitability and markups.

5.         Manufacturing:

·         Plant locations and description of facilities.

·         Description of manufacturing process if unique.

·         Capital equipment requirements.

·         Labor force.

·         Cost and quality control.

·         Backup sources of supply.

6.         R& D and Engineering:

·         Status of product line; what remains to be done, how, time required, at what cost.

·         Product life circle and technical obsolescence.

·         Plans to meet competition.

·         Needs for manufacturing and application engineering.

·         Proprietary and patent positions.

7.         Management:

·         Management team, responsibilities and skills.

·         Identification of principal owner-managers.

·         Human resource projections and plans.

·         Supporting external advisers and relationships, attorneys, accountants, investors and lenders.

·         Board of directors.

8.         Historical financials:

·         Latest balance sheet plus income statement for the past two to three years.

·         Brief explanation of major operating variances.

·         Consideration of sales and cost sales data by product line if significant.

9.         Financial plan and forecast:

·         Profit and loss/cash flow forecast by month or quarter.

·         Forecasted balance sheets at year-ends.

·         Summary of all significant assumptions used in forecast considering sales plan, changes in customer base, selling-price increases, margin improvement, material and labor.

10.     Proposed financing:

·         Desired financing.

·         Use of proceeds.

·         Securities or debt instruments offered and terms.

·         Payback and collateral.

11.     The future:

·         Commentary and summary on where the company is going.In planning for “start-up”, new ventures,new product lines and additional plants should be considered.

·         Identify the critical events or actions that must occur in order for you to achieve your objectives.E.g. Opening of a pilot operation to test a new product or service or approval on a patent application.

·         Identify and assess the key assumptions on which the new venture’s success depends.

·         Set out events that must take place in a necessary sequence.For example,the sequence may be:

-          Completion of concept.

-          Product testing.

-          Prototype developed.

-          Pilot operation opened.

-          Market tests.

-          Production start-up.

-          Initial key sales.

-          Develop a graphic presentation of the aforementioned sequence of the key events by dates and by expenditures. If appropriate. 

      

 

YOUR CHECK LIST

GETTING STARTER: CHECKLIST

     -      Choose a corporate name

      1.Check its availability.

      2. Reserve name.

-          Choose calendar year

-          Get employer identification number

      -     Decide whether your corporation will be an S corporation

-     File certificate of incorporation

     -      Design and order

   

    1.Corporate stationery

    2. Business cards.

    3. Announcement cards.

-          Decide whether to transfer your sole proprietorship assets and liabilities to your

New corporation.

-          Open corporate bank accounts.

-          Calculate start up capital for three months and how you will obtain it.

-          File corporate minutes and bylaws.

-    Decide whether to set up medical care reimbursement plan