Entrepreneurship

Introduction to Entrepreneurship

What is Entrepreneurship?

Entrepreneurship has been defined as the ability to know what products and services are needed by people, and to be able to provide these things at the right time, right place, right price, and to the right people.
The term “entrepreneur” comes from the French word ‘Entreprendre’ which means to undertake. It is a reference to the individuals who have initiated the establishment of a business enterprise

Two Types of Entrepreneurship

Mega-entrepreneurs

These are entrepreneurs who have generated substantial values and profits for a very short time and are also willing to absorb huge risks of enormous capital in their business ventures.

Micro-entrepreneurs

These are entrepreneurs who also initiated business enterprise, but the ‘value added’ and profits they make are limited

Types According to Concept

An enterprise can involve a new concept
An enterprise can be built on an existing concept, but giving rise to a new business
An enterprise can involve an existing concept and a existing business
Enterprise - A project or undertaking, typically one that is difficult or requires effort; A business or company

Entrepreneurial

Discovery
Organizing Resources
Development of Concept
Implementation
Reaping the returns

\ \ \

Business Plan

What is a business plan?

Is a document that describes the various internal and external elements involved in starting a business or in expanding an existing venture, amidst a dynamic business environment. It directs entrepreneurs to his desired destination.
It answers the following questions: Where am I now? Where am I going? How will I get there?

Why are business plans important?

It helps determine whether a proposed or existing business venture is viable given it’s target market
It guides the entrepreneur in mobilizing the resources needed by the business
It serves as a tool in helping get financing for the business
A business plan allows him to anticipate potential risks so that he can weigh the options when deciding to pour resources into the business, this becomes more critical if the entrepreneur has to invest in fixed assets, such as lands, buildings, and expensive equipment

What information is needed for the major sections of a business plan?

Market Information - A critical piece of information for any aspiring entrepreneur is the potential market for his product or services. To determine the size of the market, the entrepreneur must be clear on who his primary and secondary markets are. By coming up with a well defined target market, the entrepreneur will be able to project the size of the market and his estimated frequency of purchase, allowing them to set reasonable market goals and objectives
Information about Operations - Whether the business venture will be viable also depends largely on the cost of sourcing and manufacturing the producer providing the service
Financial Information - The financial section of the business plan will require the entrepreneur to include a list of all sources of revenue and a list of all possible expenditures for the first years of operation. The budget must include a forecast of sales revenue, which can be prepared using assumptions about the potential market, capital expenditures, direct operating expenses, and cash required for non-expensive items.

The most important parts of a business plan include:

Executive Summary - First and one of the most critical parts of a business plan. This summary provides an overview of the business plan as a whole and highlights what the business plan will cover. It is best to write the executive summary last as to have a complete understanding of your plan and can effectively summarize it.
Business Description - Provides a comprehensive description of your business and its goals, products, services, and target customer base. Include details regarding the industry your company plans to serve along with any trends or major competitors within the industry. Add you and your team’s experience in the industry and what may distinguish your company from the competition in your business description
Market Analysis and Strategy - The purpose of the market analysis and strategy component of a business plan is to research and identify a company’s primary target audience and where to find this audience.
Marketing and Sales Plan - This part of your business plan covers the specifics of how you plan to market and sell your products and services
Management and Organization Description - Explores the details of your business’s management and organization strategy. Introduce your company leaders and their qualifications and responsibilities within your business. You can also include human resources requirements and the legal structure of your company.
Products and Service Description - Use this section to further expand on the details of the products and services your company offers that you covered in the executive summary. Include all relevant information about your products and services. This includes how you will plan to manufacture them, how long they can last, what needs they may meet, and how much you project it might cost to create them.
Competitive Analysis - Add a detailed competitive analysis that clearly outlines a comparison of your organization to your competitors. Outline your competitors’ weaknesses and strengths and how you expect your company might compare to these. Include any advantages or distinctions your competition has in the marketplace
Operating Plan - This part of your business plan describes how you plan to operate the company. Include information regarding how and where your company plans to operate, such as shipping logistics or patents for intellectual property. The operating plan also details operations related to personnel, like how many employees you hope to hire in various departments.
Financial Projection and Needs - Financial Section of your plan explains how you anticipate bringing in revenue. If you need funding for your business, this section describes the sources and amounts for that funding. Include your financial statements, an analysis of these statements, and a cash flow projection
Exhibits and Appendices - last section of your business plan; provides any extra information to further support the details outlined in your plan. You can also include exhibits and appendices to support the viability of your business plan and give investors a clear understanding of the research that backs your plan

Why do some business plans fail?

Not all business plans will result in successful business undertakings. The chances of failure are higher if the business plan is poorly prepared

How to present a business plan?

A well written business plan might make potential investors or lender more inclined to provide financing for the business, but an effect oral presentation is essential in closing the deal

\ \ \ \ \

Market

Potential Market

Is the part of the market that you can capture in the future. It includes the demographic groups that are not currently your customers but could become customers in the future (Lake, L, 2019)