Developments of internal markets, autonomous and semi autonomous business units within the organization, producing products/services/technologies that employ company resources in a unique way Intrapreneurship gives managers of corporation¶s freedom to take initiative and try new ideas. Intrapreneurship is entrepreneurship within the existing business; they focus on creativity and innovation.

Intrapreneurship is Corporate Entrepreneurship
Intrapreneurship bridges gap between entrepreneurs and managers, third career path Intrapreneurs take new ideas, work on prototypes and convert them into profitable products and businesses It is a tool for stimulating and capitalizing on individuals in an organizations who believe that something can be done in a different way Intrapreneurship is about new business ideas while driving to work or taking a shower

Advantages of Intrapreneurship
Build and improve corporate business Capital for the idea easily comes from internal resources within the corporate identity Established corporate image can boost the success of intrapreneurial idea Continuous access to the propriety technology to stay competitive Corporates offer economies of in marketing, distribution and services Corporates offer unique advantage of multidisciplinary work Intrapreneur retains job security and enjoys the freedom and prosperity Due to intense competition most companies prefer intrapreneurs to managers

Intrapreneurs Profile
Vision/Goal Setters Motivation Action oriented Intrapreneurs learn to manipulate the system Well rounded business skills/learn from mistakes Moderate risk takers

Intrepreneurial Environment
Research & Development Funding Creating A Climate Training Reward System Multi-disciplinary Committment

Entrepreneurial Perspective
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Concept of Entrepreneur - Multidisciplinary Dynamic - changes over time and place Catalyst - triggers entrepreneurial process Drive and Initiative Risk Bearer Director of Musical Instruments Co-coordinator, Organizer, Manager, Supervisor Innovator, Dreamer, Visionary ³Heffalump´

Origin and Evolution
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ³Entreprendre´ (French Verb) - to undertake, Bold, hazardous undertaking Creates wealth, generates employment Profitable use of land, labour and capital Risk Bearing under Uncertainity 16th Century- Military Expeditions 17th Century Construction & Fortification Activity 18th Century- Economic Activity

Classical Theory
Richard Cantillon¶s - bearer of non-insurable risk Adam Smith -recognized merchant, employer & undertaker An Enquiry Into the Nature & Causes of Wealth of Nations (1776) he extolled the role of capital formation as an important determinant of economic development Smith did not distinguish between Capitalist and Entrepreneur, the premium for risk and uncertainty was not assigned

Neo-Classical Theory
‡ Say¶s entrepreneur unites means of production and creates value by employing them.First economist to distinguish entrepreneur from capitalist Leon Walrus¶s -4th factor of production. (Co-ordinator) Marshall- assigned risk bearing and management as entrepreneurial function J. S. Mill emphasized direction and production processes acknowledging extraordinary skills of entrepreneurship Francis Walker distinguished between entrepreneur and capitalist Keynes¶s entrepreneur is an equity owner and decision maker

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Modern Thinkers
‡ Knight - bearer of non insurable risk and uncertainty, their supply is governed by economic, psychological and social factors Higgins¶s entrepreneurship is a function of seeking investment and production opportunity Cole focuses on aggrandizement of profits Max Weber distinguished between adventurous spirit and spirit of capitalism. He linked entrepreneurship to religion Jeffrey Timmons - knack of sensing an opportunity where others see chaos,contradiction and confusion


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responds to it and exploits it as an opportunity. Frank Young . New Product New Method New Market New Source of supply New Organization ‡ ‡ ‡ ‡ ‡ ‡ Contemporary Thinkers Hagen ±Socio Psychological approach He identifies child rearing practices. John Kunkel ± Entrepreneurship depends on a combination of circumstances that are difficult to create and easy to destroy. David McClelland ± Researched achievement orientation as the most directly relevant factor for explaining economic behaviour. Economists ± harbingers of growth Sociologists ± sensitive energizer Psychologists ± motivation conducive to development Political Scientists .‡ Fredrick Harbinson stated organisation building activity is critical for industrial development Joseph Schumpeter put the human agent at the centre of the process of economic development which takes place in five ways.Entrepreneurial activity is generated by family background. Peter Drucker ± Entrepreneur always searches for change.leader . low father dominance and maternal love as factors promoting entrepreneurship as main elements Liebenstein ± Gap Filling Peter Kilby ± ³Heffalump´ Thomas Cochran ± Patterns of child rearing and family.

Entrepreneur (Conceptual Framework) Entrepreneur± Person Enterprise ± Creation Entrepreneurship .Process Advantages of Entrepreneurship ‡ ‡ ‡ Wealth Creation Generation of Employment Economic Development & Growth .

Nature & Development of Entrepreneurship ‡ ‡ ‡ ‡ ‡ ‡ ‡ Entrepreneurship . He aims at making money out of capital gains and not royalties.3 billion $ besides owing a shipping company . Buckman (Trans Elect) y 55 year old.creating Wealth. y Goal to become biggest transmission owners in the US. y Grids worth 850m. Personal fortune 1.Founder Trans ± Elect y Carrying power without generating it will yield 14% return on equity. y Chairman & CEO v Co. Stelios Haji ± Ioannou (EasyGroup) y y y y y Easy Group 34 years. Chairman & Founder of Easy Group aims at starting one company a year ± so far he is on schedule He has launched 6 businesses in 6 years from on-line car rental and financial services sites to cyber cafes. Fredrick W. y nuclear engineering v PhD. $. 2. Employment & Opportunities Case Studies Global National The New Entrepreneur The Art of spotting opportunities 10 Trends driving Entrepreneurs The World's Top Entrepreneurs 1.

was a scientist labouring in obscurity y A day later he was the highest in high-tech security y His 7 year old company Visionics Corp. J. In 1995 he opened the 1st 5 Star Hotel in Delhi. Cowasjee Nanabhai Davar 1854. Dr. paid 10% dividend for 6 years 2.20. makes biometrics matched against those in the database to identify anyone from runaways captured on video.000 to buy a stake in British partner stake in Clarke's hotel Simla. Visionics Stock price has nearly quadrupled to about 15$ 10 Entrepreneurs who changed Corporate India 1. Ravi Bahadur Mohan Singh Oberoi In 1934 he mortgaged his wife's Jewellery worth Rs. Atick (Visionics) y 37. 34 hotels. Verghese Kurien . Henning Hock Larsen Larsen & Toubro came to India to set up a cement plant in 1938 which became India¶s engineering giant worth 5. Oberoi was the 1st Indian multinational 5. 3. Hydroelectric power Technical education. 10. y The 200m$ biometrics markets is expected to hit 1 billion $ by 2004 y Since Sept. steam powered textile mill capitalized at 5 lakh. 6.400 crores ± from nuclear plants to new expressways Larsen's stamp on India is indelible. 7 countries later. Chidambaram Pillai His Swadeshi steam Navigation Company broke the monopoly of British 4. Sir Jamshetji Nusserwanji Tata Focused on steel. Jersey City N. Joseph J.3.

Dhirubhai Ambani Truly a tumultuous entrepreneur of Gujarat village school teacher¶s son worked for a petrol station. humility.Dr. With middle class values. 9. mixed opportunism with street. India became world¶s largest milk producer through 10 million farmers in Kaira district Gujarat. hard work. Aditya Vikram Birla Long before globalizations become a buzzword he spread outward with a textile mill in Thailand. honesty and innovation he inspired the whole nation. . Today Nirma¶s cut price detergent shook HLL.440 crores.388 employees that are rupee millionaires and 72 dollar millionaires including drivers and peons. Along with 7 professionals he built a tech powerhouse from Rs. N. no management ± but created a brand in his backyard in 1969 worth 2.000 crore empire. Kurien created Operation Flood largest dairy development programme in the world. The World¶s largest Palm refinery in Malaysia.smartness and manipulated licence raj to his advantage Adapted to licence raj ± Reliance today is a 60. Humble farmers. Narayan Murthy Messiah of the new middle class How many companies have 1. Till 1995 the group had 17 companies in 14 countries. cowherds all have a stake in Amul. R. 10. Karsanbhai Knodidas Patel Patel knew no marketing.000.initial investment in 1981. 10. 7. 8.

Technology 6. Less economic control 5. Growing Services 8. Nuclear Families 2. Globalization . Growing Consumer Class 9. Easier money 4. Shrinking Government jobs 3. Just-do it effect 7.10 Trends Driving Entrepreneurship 1. Instant Classification 10.

labour and overheads  Potential Market-consumption trends. availability of substitutes. potential demand in domestic and export market. Risk inherent in the project-changes in demand. production. Good business ideas should be convertible into feasible projects. greater in complementary and greatest in Breakthrough Keeping in mind these factors and expecting fair return the entrepreneur has to choose the project Identify. An attractive acceptable return on investment. technology . Availability of raw materialscost of obtaining them  Compatible with Government regulations and priorities. explore and select the business opportunity What is an Opportunity?  An opportunity is defined as an attractive project idea.Business Planning Process The success or failure of an enterprise depends on the project. which an entrepreneur accepts as a basis for his investment decision. seasonal variations. commercial and management viability Opportunity Evaluation  Compatible with Promoter-financial and human resources. Ingredients of business opportunity  Good market scope-gaps between demand and supply. involves change Breakthrough Opportunity Breakthrough involves drastic.concerns with the existing resources without making a change. nature of competition. Complementary opportunity is introducing new ideas. the identification of which is the first step. It consists of analysis of economic data for identifying the right product or service Peter Drucker classifies opportunities as Additive. Cost of the project-material. Technical. fundamental changes in the existing business Risk is least in additive opportunities.

modernization. education and defense are non quantifiable  Techno-economic projects. Industry and Mining.Sectoral projects. technical soundness. Social Service. service and welfare projects Steps to Implementation  Study the environment and decide whether to go into trading. expansion. human resources  According to the Planning Commission.Agriculture and allied sector. one failure many steps back . miscellaneous sector  Classification by financial projects. Irrigation and power. marketing ability. manufacture or service  Define the aim  Self.Project Classification  Quantifiable and non Quantifiable  Projects concerned with industrial development. mineral development are quantifiable  Projects involving health. research and development. finance. machinery. diversification. Every successful step will take the entrepreneur one step ahead. Magnitude oriented-large medium and small  Causation oriented-demand based or raw material based Factor Intensity Oriented  Capital intensive or labour intensive depends on large scale investment in plant and machinery. transport and Communications.Evaluation-question your competency and strengths  Specify requirements-space. plant. educational. power generation.

availability of physical. foreign collaboration approvals. feasibility report. They develop infrastructure and environment. non physical resources aiming for unrealistic objectives External Constraints  Nature. foreign exchange regulations  Cumbersome Procedure-documentation systems . environmental clearance. Long term benefits  Internal Constraints due to management system. projects involve substantial financial outlay. they become agents of economic.Importance of Project identification  Process of development by income and employment generation. Size and location-limiting factors when project does not conform to the socioeconomic objectives  Government policies and regulations-delays in approvals. socio-cultural development. project commitment cannot be easily reversed.

production and capacity utilization. match financial resources with amount required.Project Report  Necessary for the entrepreneur and developmental agencies  SIDO under the Ministry publishes guidelines. production activity level. statistical information on many items with regard to present and installed capacity. Govt. Institutions helping Entrepreneurs  Small Industries Service Institute (SISI)  State Industrial Development Corporation  Technical Consultancy of IDBI  Specialized cells set up nationalized banks  The size of the report depends on the unit  Nature of production and the product  Amount of financial assistance required Project Report Contents  Project Description  Market Potential  Capital Cost and Sources of Finance  Assessment of Working Capital  Other financial aspects  Economic and Social Variables . approach towards the item.

licensed or controlled  Availability of skilled labour communication facilities. power and fuel  Availability of water-ice plants.experience. capabilities  Partners whether sleeping  Trends in the industry  Past Production trends  Future demands  Organization structure. constitution.transportation facilities. NOC and location  Demand based ±near the market  Resource based eg sugar close to sugar  Skill Based eg carpet near the skill center  Footlose Industries-covered or open Raw Material  Imported or local. tanneries and breweries  Method of waste disposal-noise pollution.testing inspection and equipments. industrial estate. sub-process.effluent treatment machine vibrations  Technology selected indigenous or imported Details of Manufacturing Process  Production Flow owned or leased. town. cost and capacity  Quality control arrangements. ISI certificate .registration Product Information  Site.General Information  Name and address of the entrepreneur  Qualifications. specifications.

jigs plant & machinery  Working Capital Costs-RM. ancillary service  Seasonal items/during off season  Transportation  Capital Cost & Sources of Finance  One time cost. furniture. Market Potential-demand and supply position/gap  Price. P & L account.Competitors price Marketing Strategy  Selling of the product proposal  Distribution network.  Calculate the beak even point  Debt Service Coverage Ratio  Net Profit after Tax  Depreciation  Interest . building.000. WIP &FG inventory Assessment of Working Capital  Most units fall sick due to inadequate assessment of WC requirements. between 25000 to 5 lakh and above 5 lakh  Anticipate shortages and plan WC well Other Financial Aspects  Prepare the project B/S. Ancillary unit. cash flow statement. land. Entrepreneurs perspectives are different from Bank¶s perception  Banks have 3 different forms below 25.vehicles.

Registration  Obtaining loans  Construction of Building  Ordering Plant and Machinery  Supply and installation of plant and machinery  Recruitment of Personnel  Trial Production.Economic and Social Variables  Cost Benefit Analysis  Abatement Costs to protect environmental damage  Promoting Employment  Import Substitution  Ancilliarisation  PERT. CPM charts  Project Implementation Activity Chart  Acquiring Land . Commercial Production Business Plan Outline  Description of business  Marketing  Competition  Operating procedures  Personnel  Business insurance  Financial data .

traditional Inheritance Technologist . Risk-taker. shy. lazy Drone . problem solvers accept achievable challenges Kinds of Entrepreneurs Innovating Imitating Fabian ± carry on types. Drea. high activity level constantly struggling to achieve goal seekers decision makers. Goal Seeker Rises after every fall Converts Obstacles to Opportunities Common Thread Achievement Motivation ‡ ‡ ‡ ‡ ‡ high drive. Organizer.Personality of an Entrepreneur Who is an Entrepreneur? Each one has unique characteristics ± Vision.Manager. Co-ordinator Innovator. Leader. Dynamic.

conditioning and dynamism Entrepreneurship is not gender specific Could be men. and diversification oriented Manager Type ± Keeps it running Minor Innovation Initiator Satellite ± ancillary Local trading type (limited outlook) Entrepreneurs are made not born Everyone cannot be an Entrepreneur Good Entrepreneurship is a combination of genetic factors.Prime Mover ± growing. expanding. Risk-Taker Achievement Motivation Leadership Sociological . women or children Personality of Entrepreneur Economic Psychological ± Political Drive.Customer Orientation Entrepreneurial Personality Indomitable will ± never say die Fire in belly Will to win .

two sides of same coin ‡ ‡ ‡ Breaking the circular flow ‡ Schumpeter¶s model describes breaking the circular flow with an innovation in the form of new product for making profits Profits caused due to innovation tend to be competed away as others imitate and adapt Innovative entrepreneur comes out with another innovation when the favourable effect of the former innovation dies out Profits are generated & continue to rise with innovation ‡ ‡ ‡ . to survive the recession.Innovations and Entrepreneurship Innovations & Entrepreneurship ‡ ‡ ‡ Innovation is investing resources to create wealth or investing wealth to create resources Innovation is conscious search for opportunity The innovation entrepreneurship link the entrepreneur creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth Innovative Strategy ‡ ‡ ‡ ‡ Innovative strategy for ongoing business Better or more & new and different Why innovation? To face competition. emotional intelligence. to stand out in the clutter. huge common sense & intuition Spirit of adventure and obsession to bring change Profits & innovation. to solve problems Innovations and Profits ‡ Innovations can happen by reducing cost of production and increase demand for your product The role of the innovator needs technical knowledge.

Instilling Attitude for innovation ‡ ‡ ‡ ‡ ‡ ‡ ‡ Encourage creative conflict Big ideas come from small teams Learning happens away from the desk Understand the products and users Live in the future Failure can sometimes lead to innovation Join prototyping to brain storming for fast track innovations Sources of innovation ‡ ‡ ‡ ‡ ‡ ‡ ‡ Peter Drucker ± sources of innovation Incongruities Process needs Industry and Market change Demographics change Changes in perception New knowledge Principles of Innovation ‡ ‡ ‡ ‡ ‡ ‡ Purposeful systematic innovation begins with analysis of sources of opportunity Innovation is both conceptual and perceptual Innovators must go & look. ask and listen Innovative entrepreneurs must use the right brain and left brain They must look at figures. people and opportunities Effective innovators start small. create new users and new markets .

Self-evaluation may not be there. . sub assemblies . ‡ Advantages ‡ ‡ ‡ The acquired company is already a established company. Actual cost of acquiring a business is less costly. Fitting in overall direction & structure of the organizational plan. ‡ Disadvantages ‡ ‡ ‡ ‡ ‡ Acquired companies have a bad track record. ‡ Benefits of ancillarization ‡ ‡ ‡ Leads to growth of employment Leads to growth of GDP Leads to growth of Entrepreneurship.retailers. sales structure.tooling. 50 % of its production has to be given to other undertakings. Gets a customer base. intermediaries.Acquisition ‡ Purchase of the company or a part of it so that the acquired company is completely absorbed. Purchase price may be inflated.supplier.wholesaler. employees. Ancillarization ‡ Industrial undertakings having investments in fixed assets. Assessing opportunities becomes easier. plant & machinery whether on ownership or hire purchase are engaged in manufacture of parts & components. Price determination & negotiation is important. Key employees may leave.

Adopting higher technology becomes a problem due to limitation of size. Economical Parent co and the ancillary work like a team. Interest on delayed payment(SSI & ANCILLARY 1993 ACT) . Disadvantages ‡ ‡ ‡ ‡ Payments are delayed.Advantages ‡ ‡ ‡ ‡ Investment is Low Inventories¶ investment is drastically reduced for big companies. Bargaining power of parent co creates low operating margin.

A good plan should have clear cut mission. approval of project ideas. financial assistance and management expertise Features of Venture Capital Funding  Venture capital firms insist on equity participation through direct purchase of shares or convertible securities  It ensures continuous participation of the venture capitalist in the entrepreneurs business  Venture Capitalist may also provide services of marketing. This investment is needed at implementation between start up and commercial production. He investigates the industry and ensures he has appropriate knowledge & ability to invest.Venture Capital Funding  Venture Capital plays an important role in financing small enterprises. in depth industry and market analysis and key financial statements. ROI and credibility of the entrepreneur play a key role in the decision . clearly stated objectives. The executive summary of the Business Plan will help the VC to evaluate the proposal from the long term policy and short term needs in developing portfolio balance. Venture capital providers offer services such as business development. technology & developing organizational structure  VC comes into play when it is not easy to access capital from conventional sources High Business Growth  The business must have a high potential for growth. where growth and risk is high.This begins with the business plan of the entrepreneur.  Venture Capitalist will ensure the exit route in the appropriate manner ensuring the interest of the entrepreneur as well Venture Capital Process  Preliminary Screening. Venture Capitalist is not averse to risk  The flow of funds from the VC is in a phased manner and can be in the form of debt in initial stages  Venture Capitalist is not an equity holder.

the MoU is signed between both parties. buy-back arrangements and finally exit routes Contract (MoU)  After taking into consideration all the dimensions. securities. This covers amount of investment by the promoters and Venture capitalists  Total funds to be made available to the VC.this progress according to the MoU. This should take into consideration the regulatory laws as well. right to control the management of business. time. Review of the company history. business plan. Risk analysis of the business is jointly undertaken Negotiations  Once the viability of the project is clearly understood. resumes of promoters and key managers. equity and convertible securities. efforts involved. financial background of promoters and target market is scrutinized.  Flow of funds.Due Diligence  This stage covers the agreement on principal terms between entrepreneur and venture capitalist before making commitment of money. debt component and the interest rate for the loans. protective clauses. the negotiation process starts. The external business environment changes and flexibility is desired from both parties hence periodic reviews are conducted Tips for Entrepreneurs  Select the venture carefully  Acquire all the facts and previous background of the VC  Always try and keep an intermediary who is useful for negotiations and disputes  Avoid lawyers and accountants in the initial stages  Be careful of what is promised and what is promised  Be flexible and patient .

Indus Venture. SBI Venture Capital fund. Risk Capital and Technology Finance Corp. of India (RCTC).Indian Scenario  Always remember performance establishes trust  There are many VC s in India in the form of individuals and firms. Technology Finance Corporation of India (TDICI). IT entrepreneurs have availed of VC. Banks and Financial Institutions have promoted this concept  SIDBI. Andhra Pradesh and India Investment Fund . Can bank.

 Be Lavish in Calculating Expenditure and Miserly in Calculating Income.  Be a Systematic Planner.NEW ENTERPRISE CREATION AND MANAGEMENT ENTREPRENEURIAL QUALITIES AND COMPETENCIES CHARMS OF BEING AN ENTREPRENEUR y y y y y y y You are Your Own Boss You are Independent You No Longer ³Work for Somebody´ You Create Jobs for Others You Use Your Creative Talents.  Consult Experts and Other Entrepreneurs.  Do Not Avoid Problems .  Be a Decision Maker .  Be Prepared for Delegation When Needed. Go Step By Step to Reach Your Goal.  Manage Your Time Effectively for Maximum Utilisation.  Do Not Expect Early and Easy Returns From Your Enterprise.  Do Not Take High Risks.Anticipate Problems and Be A Problem-Solver. When in Doubt.  Be an Information Gatherer about Your Competitor.Take Decisions After Weighing and Evaluating All . Take Moderate and Calculated Risks. Skills & Knowledge for Your Own Benefit You Get Unlimited Rewards You Prove to the World that You are an ³Achiever´ Because You Seek Nothing Less Than Excellence TIPS ON BEING A SUCCESSFUL ENTREPRENEUR  Do Not Start an Enterprise Without Having/Acquiring All-Round Knowledge About It.

Direct and Honest.Implications Do Not Be Afraid If the Decision is Difficult and Unpleasant  Be Cost Conscious . YOU CAN BECOME AN ENTREPRENEUR IF YOU HAVE THESE COMPETENCIES 1.Always Weight The Costs and Benefits of All Expenditure. Use of Influence Strategy . Problem Solving 10. Self Confidence 11. Efficiency Orientation 8.Do Not Give Up.  Be Quality Conscious. Commitment to Work Contract 7. Initiative 2.  Difficulties Will Come . Concern for High Quality Work 6. Information Seeking 5. Systematic Planning 9.  Be Assertive. Seeing and Acting on Opportunities 3. Assertiveness 12. Persistence 4.  Have Commitment to Your Work Contract  Be Punctual in Your Delivery Schedule. Persuasion 13.

NEW ENTERPRISE CREATION: THE PROCESS ENTREPRENEURIAL PROCESS Stages Involved in Entrepreneurial Process BUSINESS OPPORTUNITY IDENTIFICATION & SELECTION: THE SEVEN STEP PROCESS Step 1 : Preparation of Personal Profile Step 2 : Development of Business Opportunity Identification & Selection (OIS) Framework Step 3 : Generation or Identification of Ideas Step 4 : Snap Investigation of Ideas Step 5 : Evaluation in Terms of Decision Making Framework and Shortlisting of Ideas Step 6 : Pre-feasibility study Step 7 : Opportunity Selection .

THE PROCESS OF STARTING A BUSINESS  Selection of Location : A Vital Decision  Pollution NOC : A Must  Infrastructure Facilities : The Basic Requirements  Land & Building : Make Correct Assessment  Select the Right Manufacturing Process  Balance the Plant & Machinery  Technical Know-how/Design & Engineering : Evaluate the Correct Status  Miscellaneous Fixed Assets : Provide Bare Minimum  P & P Expenses : Make Adequate Provision  Contingencies : A Cushion Against Exigencies  Margin for Working Capital : Make Adequate Provision  Project Cost : An Estimate of Funding Requirements  Financial Viability : The Crucial Part of Project Evaluation  Means of Finance : Meeting the Funding Requirements of the Project  Profitability : Reflecting the Payback Capacity of the Project  Break-Even Point : The Cutoff Period for Profit & Loss  Cash Flow : The Financial Plan  Internal Rate of Return : A Measurement of Gains Versus the Resources Employed  Economic Viability : A Commitment to the Society  Government Formalities and Procedures .

PREPARING A BUSINESS PLAN: THE KEY COMPONENTS  Basic Parameters  Market Feasibility  Technical Feasibility  Financial Viability  Implementation Schedule BENEFITS OF PREPARING A BUSINESS PLAN  Provides Focus and Directions to Your Business  Indicates How to Remain Competitive  Plan Ensures Your Growth  It Pays to Remember STEPS FOR SYSTEMATIC PLANNING Step 1 : Understanding Requirement of the Task Step 2 :Breaking Down Large Task into Small Sub-task Step 3 : Identifying Alternatives Step 4 : Comparing Alternatives in the Light of Goals Sought Step 5 : Choosing an Alternative Step 6 : Anticipating Obstacles Step 7 : Taking Logical Steps Step 8 : Learning from Experience Step 9 : Reworking Strategy .


2. 8. Exhibitions And Business Functions 7. If Your Product Is Durable Or Semi-Durable. Take Maximum Advantage Of Local Fairs. Try To Establish Your Market Through Word of Mouth Publicity 4. Use Local Media 3. Door To Door Selling . Identify Persons Who Can Influence Others in a Given Area And Try To Make Them Your Customers 5. Employ Some Good Salesmen. Be A Member of The Local Social As Well As Trade Organizations 6. You Can Work On A Franchise Basis For A Known Brand of Product 9.MULTI-FACETS OF MARKETING ` Research Planning Branding Pricing Distribution Selling Packaging Merchandizing Warehousing After-Sales-Service Sales Promotion Advertising Credit Policy MARKETING FOR SMALL BUSINESS ± SOME ECONOMICAL METHODS 1.

Personal Contacts. For Industrial Products. For Technical Products. Samples And Test Use Can Be Useful.10. Consultants And Technical Staff NEW ENTERPRISE MANAGEMENT: FINANCIAL MANAGEMENT THE FUNCTIONS OF FINANCIAL MANAGEMENT Managerial Functions Routine Functions EFFECTIVE FINANCIAL MANAGEMENT IN BUSINESS  Return on Investment (ROI)  Degree of Liquidity  Risk Factor in Investment PRINCIPAL FINANCIAL STATEMENT  Balance Sheet  Profit and Loss Account  Trial Balance WHAT IS BUDGETING A Budget is the Plan of Your Firm A Budget is Always Quantified in Financial Terms The Budget Must Quantify Revenues and Expenses Related to a Specific Operation A Budget Should Be Prepared for a Specified Period of Time . 12. Demonstrations. You Have To Establish And Maintain Contacts With Advisers. If It Is A Product For Children You Can Also Distribute Samples In Schools 11.

Step 2 : Forecast Manpower Based On Your Future Plan Step 3 : Prepare A Chart of Existing Manpower SOURCES OF MANPOWER SUPPLY  Internal Supply  Private Placement Agencies  Industrial Training Institutions. for thinking about your business and planning 3. Before you go to sleep each night. Polytechnics. Find out your personal prime time 4. But Also Involves Effective Utilisation of Manpower Resources STEPS TO ENSURE THE AVAILABILITY OF MANPOWER Step 1 : Examine The Objectives of Your Organisation For The Next Few Years. plan the work for the next day . Delegate non-priority tasks to subordinates 5.NEW ENTERPRISE MANAGEMENT: MANPOWER PLANNING PLANNING FOR MANPOWER Manpower Planning And Selection of Employees Are Very Important For Any Organisation. Analyse your time inventory and utilise it periodically 2.etc  Management Schools NEW ENTERPRISE MANAGEMENT: TIME MANAGEMENT PRINCIPLES OF TIME MANAGEMENT 1. Keep some time free. Manpower Planning Involves Not Only Estimating the Requirement for Workers And Supervisory Staff. Reward yourself each time you follow your time management plan 6. daily.

Identify Good Sales Agents / Distributors in the Market Targeted. Adopt Marketing Strategies That Add Value To Your Product in the Export Market. Here Are Some Hints For You Prepare Yourself For International Marketing Through Experience in the Local Market. IDENTIFYING AND EVALUATING EXPORT OPPORTUNITIES Identify Market Segments Identifying Wants and Needs Maintain Records on Growth Trends INTERNATIONAL MARKETING STRATEGY When you decide to export.NEW ENTERPRISE MANAGEMENT: EXPORT MARKETING EXPORT MARKETING ± HINTS If You Are A New Exporter. INGREDIENTS OF INTERNATIONAL MARKETING STRATEGY Market Segmentation Market Research Product Characteristics Export Pricing Distribution Channel EXPORT COSTING METHODS The Cost-Plus Approach Marginal Costing or the Contribution Pricing The Value-Added Costing . Price Your Product Carefully. Acquire the Required Technical Expertise Before Venturing into Export. This will tell you where you are going and how you should get there. Beware of Why You Should Enter the Export Market And What Your Goals Are. Develop Export Marketing Plans And Strategies. you must formulate an export strategy.

The Causes and the Measures to Prevent These Crises First Crisis: Starting Crisis  Inadequate Rounded Managerial Experiences/Inadequate Understanding of the Line Chosen  Under Estimation of the Capital Requirement for the Project  Lack of understanding of accounts  Wrong Choose of Equipment/Project Capacity  Ignorance about Taxation .INFORMATION ON COMPETITIVE PRODUCTS IN WORLD MARKETS Financial Times The Public Ledger Metal Bulletin Marketing in Europe Prices of Selected Asia/Pacific Products Catalogues of Mail Order Houses Guidelines for Exporters for Various Products in UK Market Fresh Produce Journal NEW ENTERPRISE MANAGEMENT: MANAGEMENT OF SEVEN CRISES IN BUSINESS THE SEVEN BUSINESS CRISES Evaluating Performance: Ladder of Seven Crises Here are The Types of Business Crises.

bankers and financial experts. etc. rising outstanding amount.Avoiding Starting Crisis  Choose the project line you are most familiar with (experience. special knowledge. market contacts. education. inventory of finished goods and outstanding recoveries . etc. curtail it or drop it  Use as much advice and information as possible from all possible sources  Invest in an accountant at the earliest (learn what important financial data are needed)  Visit sales tax and excise offices regularly Second Crisis: Cash Crisis  Excessive attention to profits and sales growth rather than cash-in-hand (overinvestment in raw material stock. not over ambitious. invest in a good accountant at the first opportunity  Constantly assess cash position and prepare cashflow statements every three months in advance  Monitor raw material stock. semi-finished goods.)  Make realistic.)  Excessive investment in fixed assets by tying up funds  Unplanned expansion in time and stages Avoiding Cash Crisis  Understand the relationship between profit and cash and the difference between cash and assets  Constantly watch for ways of economising on cash  Consult good accountant. plans  Allow the project report to `thaw` and recheck optimistic assumptions  Be conservative about income (low and late) and liberal about expenditure (high and early) in making cash flow projection  Never start a project without ensuring sufficient funds-change it.

government policies. lack of capability to guide and groom others and lack of trust in subordinates)  Business and responsibility grow but time does not. Avoiding Delegation Crisis  Seek out a capable second person to supplement `you`  Test him. discipline and re-educate himself in new management skills and styles for achieving and sustaining growth.  Psychological problems (³only I can do better´. watch him and start sharing responsibilities  Consult management experts or colleagues to identify your own weaknesses and select the second person who is strong in those weak areas  Be prepared for according a high salary. Avoiding Leadership Crisis  The entrepreneur must train. future plans.  Develop a team of executives and give them sufficient authority to create in them leadership qualities .  Old habits. etc. outdated knowledge and management by one or two subordinates will not do  Act like a leader than a manager/supervisor  Constantly evaluate how you spend your time  Concentrate on business strategies. thus business suffers and success ends in failure.Third Crisis: Delegation Crisis  Inability to delegate responsibilities and share the decision making burden. appropriate status and authority and profitsharing to retain the key person Fourth Crisis: Leadership Crisis  Single owner or partners unable to manage responsibilities of a large firm  Failure to delegate authority and to develop a management team  Failure to adopt the managing style of an effective leader clinging to the old style of not delegating authority and doing everything by himself/herself. competition.

and intoxication by success Avoiding Prosperity Crisis  Always keep your eyes and ears open. a cockiness arising out of prosperity. new products and consumer tastes  Loss of market share and declining profits  Overconfidence. ambitious expansion moves. technological changes. do not relax even in prosperity  Always remain firmly aggressive and not passive  Do not be overconfident.Fifth Crisis: Financial Crisis  Failure to choose the right source of funding for expansion (excessive dependence on borrowed funds)  Failure to go to public  Over ambitious and unrealistic expansion plans using surplus funds  Psychological problems of losing control ± 100% ownership of declining unit vs 80% of a large successful firm Avoiding Financial Crisis  Sufficient delegation. good team work and constant monitoring help avoid financial crisis  Consult experts and bankers to choose the best source of funds and the time and mode of expression  Do not be afraid to go public  Remember : 80% ownership of a growing firm is better than 100% ownership of a stagnant/declining one Sixth Crisis: Prosperity Crisis  Satisfaction with current success ± caught napping  Failure to watch out for new competition. Do not enter into an unknown project or over ambitious expansion  Remember success today is no guarantee of success tomorrow . raw material substitutes.

unexpected death or incapability of the entrepreneur  No one groomed to take over management responsibilities in such a case  The second key person does not have sufficient shares in the firm  Death duty or estate duty obligations  Failure to delegate. liabilities and other key elements of your business .Seventh Crisis: Management Succession Crisis  Long illness. Avoiding Management Succession Crisis  Succession has to be planned-remove all doubts and apprehensions  Take advance action in selecting and grooming a management successor  Have one person with general management skills and few others with special skills  A team is better than a single ³prince´  Invite competent persons on the board of directors  Develop a club of like-minded businessmen  Constantly interact with bankers and investors  Prepare a will. over-confidence-all taking their toll. etc.  Brief your family about assets. lack of planning. accident. transfer shares and plan for death duty.

NEW ENTERPRISE MANAGEMENT: BUSINESS COMMUNICATION CONCEPT OF COMMUNICATION Understand the Concept of Communication through 7 C¶s And 4 S¶s The Seven C¶s  Credibility  Context  Content  Clarity  Channels  Consistency  Capability of the Audience The Four S¶s  Shortness  Simplicity  Strength  Sincerity THE TEN COMMANDMENTS OF EFFECTIVE COMMUNICATION 1. Provide Communication Training . Use Adequate Medium 5. Be Clear in the Use of Language 3. Watch How Much You Communicate 4. Listen Attentively 7. Be Sure of What and Why You Wish to Communicate 2. Be Sure Your Actions Do Not Contradict Your Communication 10. Remember That Communication is a Two Way Process 9. Watch out for Unintentional Communication 8. Provide the Right Climate 6.

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