UNIT 1

Ankita Devnath, IITTM

Entrepreneurship is first and foremost a mindset. It is the art of finding creative profitable solutions to problems. Entrepreneurial spirit is characterized by innovation and risk-taking, and an essential component of a nation's ability to succeed in an ever changing and more competitive global marketplace .
The assumption of risk and responsibility in designing and implementing a business strategy or starting a business is all in Entrepreneurship.
Ankita Devnath, IITTM

While starting a business one need to focus on : Understanding your customer Passion Understand your competition Cash flow You (know who you are)

Ankita Devnath, IITTM

 Make

Meaning Make Mantra Get Going Define a business model Weave a Mat

Ankita Devnath, IITTM

 If

you make a meaning ,you make money but if you make money ,you dont make the meaning. Going into business for something more than making money. Focused on accomplishing a goal and being true to what it stands for. Can create more value and achieve lasting strategic advantages over their competitors

Ankita Devnath, IITTM

mantra is for employees; its a guideline for what they do in their jobs. A mantra is three or four words to explain why your product, service or company should exists. It sets the entire team on the right course. A mantra is made out of meaning of your business

Ankita Devnath, IITTM

 Think

Big Polarize People Design Different Use Prototypes as market research

Ankita Devnath, IITTM

What How When Where

Defining a business model: Be specific Keep it simple Copy somebody
Ankita Devnath, IITTM

 Milestones
Tasks

Assumptions Strategy Paths

Ankita Devnath, IITTM

 Prove

your concept. Complete design specifications Finish a prototype Raise Capital Ship a testable version to customers Ship the final version to customers Achieve breakeven

Ankita Devnath, IITTM

 Product

or service performance metrics Market size Gross margin Sales calls per sales person Conversion rate of prospects to customers Length of sales cycle Return on investment for the customer Compensation requirements

Ankita Devnath, IITTM

List of major tasks that are necessary to design, manufacture, sell, ship and support your product or service are: Renting office space Finding key vendors Setting up accounting and payroll systems Filing legal documents Purchasing insurance policies

Ankita Devnath, IITTM

Entrepreneur

Internal

External
Ankita Devnath, IITTM

 Passionate
Goal

Enthusiastic

Oriented Creative Imagination Positive Attitude Decision Makers

Ankita Devnath, IITTM

The best way to start your business is the tailoring the ways of your thoughts Try your best to make sure that your goal of achieving money in starting a business is only secondary. One should take into consideration certain things that one can use to achieve along term growth.

Ankita Devnath, IITTM

Competition is a very necessary part of private enterprise. If a private enterprise system is to serve the people efficiently, there must be competition among those who produce the products and among those who sell them. A competitive analysis is defined as the identification and examination of the characteristics of a specific competing firm. A business-specific competitive analysis provides you with the information you need to pinpoint strengths and weaknesses, both yours and the competitions Ankita Devnath, IITTM A competitor analysis should include the more

Yellow Pages Promotional brochures Promotional advertisements Competitors customers Competitors vendors Trade associations Competitors web sites Competitors employees News stories about competitors

Ankita Devnath, IITTM

Five factors should be analyzed: Price Location Facility Competition type Rank

Ankita Devnath, IITTM

H=High M=Middle L=Low

B=Better W=Worse S=Same

B=Better W=Worse S=Same

Ankita Devnath, IITTM

 Competitor

activities

analysis has two primary

obtaining information about important competitors

using that information to predict competitor behavior.

The

goal of competitor analysis is to understand:

with which competitors to compete, competitors' strategies and planned actions, how competitors might react to a firm's actions, how to influence competitor behavior to the firm's own

advantage.

Ankita Devnath, IITTM

 Objectives and assumptions are what drive the competitor

Competitor 's objectives

Competitor's capabilities

Strategy and capabilities are what the competitor is doing or is capable of doing.

Competitor's assumptions

Competitor's strategy

Ankita Devnath, IITTM

Knowledge of a competitor's objectives facilitates a better prediction of the competitor's reaction to different competitive moves. For example,
a competitor focused on reaching short-term financial goals might not be willing to spend much money responding to a competitive attack. Rather, such a competitor might favor focusing on the products that hold positions that better can be defended. On the other hand, a company that has no short term profitability objectives might be willing to participate in destructive price competition in which neither firm earns a profit.
growth rate market share technology leadership

Competitor objectives may be financial or other types.

Other aspects of the competitor that serve as indicators of its objectives include
risk tolerance management incentives backgrounds of the executives composition of the board of directors legal or contractual restrictions. Ankita its objectives Whether the competitor is meeting Devnath, IITTM

provides an indication of how

The assumptions that a competitor's managers hold about their firm and their industry help to define the moves that they will consider. A competitor's assumptions may be based on a number of factors, including any of the following:
beliefs about its competitive position past experience with a product regional factors industry trends rules of thumb

A thorough competitor analysis also would include assumptions that a competitor makes about its own competitors, and whether that assessment is accurate.
Ankita Devnath, IITTM

The two main sources of information about a competitor's strategy is what the competitor says and what it does. What a competitor is saying about its strategy is revealed in:
annual shareholder reports 10K reports interviews with analysts statements by managers press releases

However, this stated strategy often differs from what the competitor actually is doing. What the competitor is doing is evident in where its cash flow is directed, such as in the following actions:
hiring activity R & D projects capital investments promotional campaigns strategic partnerships mergers and acquisitions

Ankita Devnath, IITTM

 Competitors

resources and capabilities determine its ability to respond effectively. A competitor's capabilities can be analyzed according to its strengths and weaknesses in various functional areas (SWOT analysis). A financial analysis can be performed to reveal its sustainable growth rate. Finally, since the competitive environment is dynamic, the competitor's ability to react swiftly to change should be evaluated.
Ankita Devnath, IITTM

Information from an analysis of the competitor's objectives, assumptions, strategy, and capabilities can be compiled into a response profile of possible moves that might be made by the competitor. This profile includes both potential offensive and defensive moves. The specific moves and their expected strength can be estimated using information gleaned from the analysis. The result of the competitor analysis should be an improved ability to predict the competitor's behavior and even to influence that behavior to the firms advantage.
Ankita Devnath, IITTM

Who they are

B2C:find out your customers' gender, age and

What they do

occupation. B2B, find out what industry they are in, their size and the kind of business they are.
B2C, it's worth knowing their occupations and interests. B2B, it helps to have an understanding of what their

Why they buy

business is trying to achieve.

If you know why customers buy a product or service, it's

easier to match their needs to the benefits your business can offer.
Ankita Devnath, IITTM

 When

they buy

If you approach a customer just at the time they want

How

to buy, you will massively increase your chances of success.

they buy

Some people prefer to buy from a website, while

What

others prefer a face-to-face meeting.

makes them feel good about buying

If you know what makes them tick, you can serve

How

them in the way they prefer.

much money they have

Match what you're offering to what your customer

can afford.

Ankita Devnath, IITTM

 What

they expect of you

For example, if your customers expect reliable delivery

What

and you don't disappoint them, you stand to gain repeat business.

they think about your competitors

If you know how your customers view your

competition, you stand a much better chance of staying ahead of your rivals.

Ankita Devnath, IITTM

 Customizing

and improving your products and services to meet each segment's needs Identifying your most and least profitable customers Focusing your marketing on the segments most likely to buy your products or services Building loyal relationships with customers by developing the products and services they want Getting ahead of the competition
Ankita Devnath, IITTM