Bsc

Mrs. TABI LEVEL III

ACADEMIC YEAR 2020/2021

MAIN OBJECTIVES
Objective: At the end of the course students should be able to:
Conceive / setup a small and medium size enterprise
Present a business plan for funding
Create awareness about their business or enterprise.
Manage small and medium size enterprise

CHAPTER ONE
 NOTION OF ENTERPRISE
(CONCEPTUAL APPROACH AND CLASSIFICATION)

Definition of concept

NOTION

A Notion is general understanding; vague or imperfect conception or

idea of something. For example a notion of how to ride a bike, pilot a
plane, drive a car or ride a house

ENTERPRISE

Enterprise: An enterprise is simply another name for business.

Enterprise (Oxford Dictionary) – Bold Undertaking

An enterprise is an organisational unit producing goods or services

which has a certain degree of autonomy in decision-making. An
enterprise can carry out more than one economic activity and it can
be situated at more than one location. An enterprise may consist out
of one or more legal units.

BUSINESS IDEAS
 A business idea is a concept that can be used for financial gain that is
usually centered on a product or service that can be offered for money.
An idea is the base of the pyramid when it comes to the business as a
whole. The characteristics of a promising business idea are:
Innovative.

IMPORTANCE OF A GOOD BUSINESS IDEA

A business idea is a starting point for any current or future

entrepreneurs. It is essential because it helps you to

1. Define Your Products and Services

Every business will rely on something that will sell to customers.
That something can be a product or service. Until now, you have
an idea that covers some product or service for your future or
current company. You will need to answer the following
questions:

• What product or service you will offer?

• What are the features of these products or services?
• What are the benefits that your products or service will bring to
your potential customers?
• What types of additional services will be offered by that product
or service?

2. Define the Market for Your Business Idea

You already have an idea, and you already have defined the
products or services that you will offer on the market. The next
thing that you must do is clearly, precisely, and unambiguously
define the market that you will serve with these products or
services. Here are some questions that you as an entrepreneur
will need to answer:
• On which market you will offer these products and services (city,
region, country, continent…)?
• Who will be the customer of these products or services?
• What are the features of those customers who will consume your
products or services (sex, age, income, ethnicity, etc.)?

3. Define Main Competitors

Next, the important things about the products, services, and
market when you want to define your next steps about your initial
business idea are competitors.
Don’t make a mistake to underestimate your competitors,
because the success of your business in large part will depend on
your own, but also on their performance. It is necessary to
precisely define the main competitors who are already on the
market that you defined earlier. Here are some questions that
you, as an entrepreneur, will need to answer:

• What are the five most significant market players in the industry
in which you categorize your business idea?
• What, where, and how that five major market players offer their
products and services?
• What are the main features of their products or services?
• What are the benefits that they provide to the market with their
products or services?
• What is the resistance of the market related to the entry of new
competitors and how difficult it can be accomplished?

4. Define Resources Required by Your Business Idea

You already have an idea, have defined your products and
services, have defined the market where you will offer those
products and services, and have defined the main competitors
and what they are currently doing. Now, it is time to define the
necessary resources you will need if you want your idea to
become a reality. You will need to define a minimum the
following:
• How many human resources you will need?
• What kind of intellectual capital will you need for your business?
• How much financial resources you will need?
• Where will you find that financial resources?
• What material resources you will need?
• Where will you find that material resources?
• What information resources you will need?
• What will be the sources of that information resources?

INDICATORS OF A GOOD BUSINESS IDEA

Coming up with a business idea is easy. That's a challenge. Yet,

perhaps an even bigger challenge is distinguishing the good
ideas from the not-so-good ones.

How can you tell if your idea for a business is worth pursuing?
Here are 10 signs to look for.

Very little or No one is doing it

It might seem obvious, but if Very little no one else is doing what
your business proposes to do, you could have a good idea on
your hands.

Someone else is doing it ... but not like this

Not every great business idea needs to be one-of-a-kind; some

successful businesses are based on an old idea, re-regenerated.

It solves a specific problem

Your business idea doesn't have to be funny to be successful.

Many businesses find success by doing something very straight-
forward: solving other people's problems.
It's fundable

Funding is the process of providing funds for business activities,

making purchases, or investing. Having financial institutions and
investors willing to invest in a project is an indicator of a good
business idea.

People you don't know say it's a good idea

One simple way to find out if your business idea is worth pursuing
is to ask people — specifically, people you don't know — whether
they think it's a good idea. This is because all business ideas
must be tested in the court of public opinion.

People you trust say it's a good idea

Some entrepreneurs advise others not to bother asking people

they know what they think of a business idea. After all, if these
people are too nice (or afraid of you) to tell you when an idea is
half-baked, they really can't be trusted.

It does well at trade/consumer shows

If you don't know five people you can trust to give you an honest
opinion, you may want to try a different strategy. Many
entrepreneurs test their new ideas at trade shows or consumer
shows. These exhibitions for businesses in a specific industry
attract prospective customers who can give you valuable
feedback about your product or service.

It's easy to understand

This next strategy for testing your business idea needs little
explanation: if your idea is easy to understand, chances are it's
more likely to succeed with prospective customers or investors.
.

Your heart is in it

Anyone who has ever started a business can tell you.

But when you're determining whether or not to pursue your idea

for a new business, you'll need to use more than your head. You'll
also have to use your heart by being guided by your intution

THE MOST IMPORTANT THINGS TO TAKE INTO

CONSIDERATION WHEN STARTING A BUSINESS

Business Plan, Appropriately Priced Funding & A Management Team

(1) Business Plan, which described the opportunity my team and
I identified, the approach we planned to take to capture our share
of it, the management team we already had and planned to put
in place, the financial projections we developed to justify the risk
we were undertaking and an exit strategy, for when the time was
ripe.

(2) Appropriately Priced Funding for the acquisition and

reasonable commitments for the ongoing business.

(3) A Management Team that was made up of a group of capable

people sharing common interests and values, and who possessed
unique but complementary skills.
Business Mentors
Mentors: A business mentor is someone with more
entrepreneurial business experience than you who serves as a
trusted over an extended period of time, usually free of charge.
Many business mentor may advice people to in order to improve
on their skills so as to be equip in the business world.

A Great Name, Logo, Tag Line & Website

(1) A great name and logo that would create a visual explanation
of the business to evoke recognition and interest in finding out
more.

(2) A tag line (is a short text which serves to clarify a thought. It
could be a slogan). It visibly explains what the business is and why
you need it.

(3) A website with a user-experience that navigates pleasurably,

logically and simply, to draw customers in for a lifetime.

Differentiator & Business Plan

(1) Developing a differentiator for the business. For our business
it was process distinguishing a product and service from others
to make it more attractive to a particular target market.

(2) Develop a clear business plan. Taking the time to develop a

roadmap for launching and growing the business is invaluable. It
forces entrepreneurs to think about factors like finances,
marketing, overhead, and staffing to name a few.

A Mission Statement & Support

(1) A mission statement invites the owner to honor alignment of
vision, brand, purpose while setting the foundation of the
business.

(2) Support is crucial for start-ups, whether that is in marketing

collaborations, encouragement in personal creative expression,
financial management. The quality within support allows a
greater range and depth of the overall business success, as well
as the success of specific programs/products.

Marketing
The most important this to understand when starting a business
is marketing – you can’t use the build it and they will come or the
hope and pray method – you have to be willing to market
yourself.

Target Clients & Minimum Revenue to Survive

(1) you need to know who your target clients are – “anybody that
can use my products or services” is not an actionable answer.

(2) you need to know the minimum revenue you need to survive
during the first one or 2 years as you establish your business –
and you need a plan to achieve the revenue (“hope” is not a plan).
Idea Validation
By far the most important part of starting your own business is
idea validation. Where most people go wrong is that they think
they need to have an idea first, and then start a business around
that idea. In other words, let me create this thing and then figure
out how to get people to buy it.

Business Entity, Operating Agreement & Biz Plan

(1) Business entity (i.e. LLC, or corporation) with its own bank
account.

(2) An operating agreement if there are 2 or more owners.

(3) A clear business plan based on research and input from

mentors.

A Strong Team, Tools & Following Through

(1) A team of support: It’s impossible to be a Jack or Jane of
all trades, and those who try will inevitably fail. It is vital
to secure a team of experts who can help you navigate
through the waters – a bookkeeper, a marketing
consultant, a technical support person and so forth.
Everything you do in your business in the early stage
either needs to save you time or money. Having a support
team will save you time and even money in the long run.
With Virtual Assistants and freelancers today, there’s no
excuse to not have a team

(2) . (2) Tools to evaluate:

 With technology, it’s faster than ever to create
dashboard reports. Some small business owners get so
caught up in the day-to-day details that they don’t think
like a CEO.

(3) The ability to follow through: Everyone makes big

promises, but those who follow through will always stand
out. When I first started my business, I stayed on top of
my game and I managed for results. I gave every
client something valuable, and always a little extra, too. I
never took my eye off of the ball– and it made all the
difference when my clients noticed.

A Sound Business Plan

One of the most important elements of starting my business was
a sound a business plan. With the assistance of the SBA (Small
Business Administration), I was able to develop a clear and
concise business plan that laid out the operational and financial
blueprint of the company. By following the business plan and
updating it on a regular basis, Landmark Tax Group has seen a
steady incline in revenues since inception.

Collaboration
(1) Every good entrepreneur needs a solid idea, but I believe that
collaboration, which is key in this day in age, will facilitate more
creativity and improve ideas. Business today, especially in this
economy, is about collaboration—not competition. Who knows,
you may even find your next business partner, which is an
incredible asset that helps balance everything. If you surround
yourself with good, creative people who bring out the best in you
everything else almost always takes care of itself. Good ideas will
flow more readily and your team will find ways to make them
work.

Belief in yourself & Business Plan

(1) Belief in myself that I could be successful and financially
support my family without being at a “regular” job..

(2) Comprehensive business plan that included investing in

marketing and PR strategies and tactics.

Large, Diverse Network

In today’s world having access to a large and diverse network of
contacts can help jump start a new business. Build your personal
and professional contact data bases before you need them and
begin expanding your social media networks; connect and
engage with people to build real relationships. Those contacts
can help quickly spread the word about your new products
or services when you do launch.

Good Financial Advice

Unfortunately, I didn’t learn this until many years into running
the business and it put me behind an eight-ball several times.
You need good financial advice from a qualified, forward-
thinking accountant. If the expense of a good accountant seems
high, then you’re not selling enough product/service

Action Boards & Daily Positive Affirmations

Of course, creating all the plans from researched facts are very
important in building that courage and belief. But in the end, it is
my own action board of lists and pictures that show what I am
actively working toward in the long-run and my daily
positive affirmation to my image looking back at me in the
mirror: “Today I will cheer for others, share my knowledge, and
take one step closer to winning the hearts and trust of business
owners who need my internet marketing services.”

Motivation, Access to the Experienced, Organizational Skills & Curiosity

(1) Motivation and support from friends and family.

(2) Access to people who have business experience.

(3) Organizational skills to allow for proper record keeping from

the start.

(4) Willingness to learn – The information is available but you

have to be willing to spend the time to learn.

EXAMPLES OF GOOD BUSINESS IDEAS

1. Accounting and Bookkeeping

2. Business Consultant

3. Marketing Services
4. Real Estate Business

5. Event Planner

6. Video Production

7. Podcasting and blogging

8. IT Consulting

9. Catering

10. Social Media Management

11. Tax Consulting

12. PR Agent

14. Professional Organizing

15. Photography

16. Event Space

17. Interior Decorating

18. Woodworking or Furniture Building

19. Graphic Design

20. Clothing Boutique

23. Restaurant or Cafe

25. Ice Cream Shop

26. Personal Chef.

30. Massage Therapist

31. Nutritionist
32. Personal Trainer or Fitness Instructor

33. Beauty Services

35. AcademicTutor

36. Daycare Provider

37. Senior Care Provider

38. Interpreter or Translator

39. Housecleaning

40. Automotive Repair

41. Handyman Services you can specialize in certain repairs,

such as plumbing, electrical, locksmith, home security
installment

42. Dry Cleaners

43. Hardware Store

44. Self-Storage Business

46. Rideshare Driver

47. Website Development and Design

48. Sell Clothes Online

50. App Development

How to Kill a Good Business Idea

Talking to the Wrong People About Your Business Idea

You get a flash of inspiration, an amazing idea, and you want to tell everyone
you can think of–even your estranged uncle if you can corner him long
enough to get him to listen. But asking just about anyone only leads to
vague and non-actionable advice. Or worse, they tell you your idea will
never work without giving a reason why.
The thing about asking family and friends (or even groups and organizations
not equipped to deal with your idea), is they don’t have the tools or
experience to tell you anything useful.

Pretenders are out there, fake mentors, self-proclaimed small business

consultants and strategists, even some groups who are in the business of
free-business-advice.
Instead, reach out to fellow entrepreneurs, startup founders and people in the
industry you are targeting who will have suggestions to actually follow
through with your idea and see if it will work.

You can even take it a step further by communicating with potential clients
through “customer discovery” or attend meetup groups that are in the core
of your business idea.

Talking to Yourself (in the wrong way)

It’s all about mind-set. The number one thing all successful entrepreneurs
need is a robust and healthy mind-set. Negative self-talk, “impostor
syndrome” and putting yourself down is common when you’re an
entrepreneur, you have to over-come this problem with outside resources
or seeking positive re-enforcement from within.

Delaying the Inevitable

If you keep delaying your business idea, guess what, your idea might as well
have failed. If you never act on a good idea, the good idea will never exist–
which can be just as damaging as failing.

Here is the thing about good ideas: If you have thought of it, chances are, so
has somebody else. You can delay and tell yourself now is not the right
time to do it, but someone out there hasn’t delayed and will beat you to
the punch. Sure, they may have several failures along the way, but at least
they didn’t put it off so long that it never came to fruition.

Being Over Confident

Confidence and tenacity are great common traits of most entrepreneurs. But
don’t be cocky. Be humble. Just because you thought it, don’t be thinking
your idea is the best left the way it is. The process should prove that, not
your intellect. Otherwise you’ll turn people off and those may be the people
you need to take it to the next level.

Often, little tweaks, little pivots will be necessary. Be humble. Don’t be

a know-it-all.
The right dose of “I don’t know” can get you to better version of your
original idea, especially in business and product development.

Keeping Ideas in Your Head

We tell ourselves all the time that we will remember what we were thinking
about.

But not putting our ideas on paper is the worst form of sabotage.
Start keeping a notebook, pen and paper, napkin and pencil, whichever
tickles your fancy. Once you start thinking on paper you can take your idea
to the next level.

Read this useful article to learn more: The Productive Benefits of Organizing
Your Ideas Outside Your Head
Don’t Swat at Your Idea; Until You SWOT It
Have you thought about your business idea from an objective stand point?
It’s hard to see our own ideas clearly, with our pre-conceived judgments of
what we can and can’t do. If you want to look at your idea from a ‘high-
level’ stand point–that helps you see what you can do with your business in
the real world–then SWOT is for you.

A SWOT analysis is a simple foundational tool to help oneself develop a

strategy. It’s typically used in the Startup phase. But you can certainly do
this in the idea-phase of your business as well.

Reasons of Business Creation

1. Flexibility. Work your own hours.

2. More spare time (eventually). Spend more time with your family
and friends. But note: This is only applicable once your business is
established and you have employees handling the majority of necessary
responsibilities. Don’t expect to have more spare time until you reach
this point. In fact, expect to have much less.

3. Call the shots. Nobody else is going to set the rules. You are.

4. Set your own deadlines. No more last-minute rushing unless you

want to do it.

5. Sell how you want to sell. Online? In person? Inbound? Outbound?

It’s your call.

6. Create your own environment. You can set the formality and
culture of your organization.

7. Pursue your passion. You can do what makes you happy.

8. Create something from scratch. Watch your organization grow

from start to finish.

9. Meet new people. Network with other entrepreneurs and

professionals.

10. Build a team. You decide who to hire and bring into your company.

11. Create jobs. Improve the economy with new job opportunities.

12. Help people. Use products and services to improve people’s lives.

13. Become an expert. Learn the ropes of your industry through first-
hand experience.

14. Invest in yourself. You take the risk, and you’ll gain the rewards.

15. Make more money. If you want a pay raise, you can give yourself
one.

16. Financial independence. No one else is signing your paychecks.

17. Tax benefits. Write off your biggest expenses Note: while you do
get to write off lots of expenses as an entrepreneur, beware the “self
employment tax.”
18. New challenges every day. Find new ways to stimulate your mind.

19. Get exposed to new cultures. Discover new perspectives and

approaches.

20. Discover new fields. Delve deeper into your industry.

21. Create an asset. Give yourself something sellable to hedge your

bets.

22. Connect with your clients. Forge real, personal connections.

23. Delegate boring tasks. Don’t do anything you don’t want to.

24. You can stop working. Work you enjoy doing can’t be described
as “work.”

25. The power to give. Have the power and flexibility to donate time
or money to worthy causes.

Related: The 8-Step Battle Plan to Succeed as an Entrepreneur

26. Get involved in the community. Participate actively in your

neighborhood and region.

27. Improve your industry. Push your industry forward with new
innovations and ideas.

28. Get a mentor. Meet valuable, insightful mentors and learn from
them.

29. Become a mentor. Take your own knowledge and experience, and
mentor someone else.

30. Learn new skills. Branch out in new departments.

31. Attend new classes and seminars. Constantly refine your skillset
and stay updated.

32. Have a big office. If you want the biggest office in your workplace,
it’s yours.
33. Work from anywhere. Work from home, an office or a beach if
you so choose.

34. Have the option for multiple ventures. Start another business
when you’re done with this one.

35. Gain entrepreneurial experience. Being an entrepreneur makes

you a better professional in almost any position.

36. Get recognized. Start earning name recognition and build a

reputation.

37. Get things done faster. Set your own efficiency rates.

38. Build a personal brand. Take the time to develop your personal
brand, and tie it into your business’s.

39. Get more creative. Create your own opportunities and your own
solutions.

40. Inspire others. Serve as an example for other people to follow their
dreams.

41. Reduce your commute. Find an office space closer to your home.

42. Have more job stability. Never worry about being laid off or fired.

43. Find pride and fulfillment. Finally start taking pride in the work
you’re doing.

44. Reach your dreams. If you’ve ever dreamed of being wildly

successful, this is your chance.

45. Learn to embrace failure. Even if you fail, you’ll walk away with
new skills and more experience you never had before.

46. Have a great story to tell. It will be a fun story for your
grandchildren one day, win or lose.

47. Leave something behind. Pass the business down to your children
and grandchildren.
48. Change the world. It may seem like a lofty goal for you right now,
but your business really could change the world.

49. Resources are plentiful. With the dominance of the Internet, it’s
easier than ever to find resources you need, including startup capital,
loans, grants and even mentors.

50. There’s nothing stopping you. What’s really keeping you from
being an entrepreneur? Of course there are risks, but there’s nothing
forcing you not to take them.

If you want to become an entrepreneur, there’s nothing really holding

you back. Take the leap, and lead the company you’ve always wanted.

Major Causes of Business Failure

1. Not Seeking Professional Advice

2. Lack of Good Customer Care
3. Copying Others
4. Lack of Experience
5. Unaccountability
6. Lack of Personal Growth
7. Poor Location
8. Lack of Focus
9. Wrong Expectation
10. Quitting Too Soon