Teachers Guide Level III by yaohongm

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									Teachers Guide

         for



    Level III
 Women in rural areas
The publication has been produced with the assistance of the European Union. The contents
of the publication is the sole responsibility of the contractor, PEM GmbH, and can in no way
be taken to reflect the views of the European Union




        Technical Assistance for Further Modernisation of Kosovo’s Vocational Education Training System, Phase III
        An EU-funded project managed by the European Agency for Reconstruction
                                                Table of Content

Entrepreneurship Module III ....................................................................................................... 1
Introduction to the Module for Women in Rural Areas ................................................................ 1
Pre-Module: Talk Show Concept “Getting Entrepreneurial” ........................................................ 2
Unit 1: Characteristics of a successful Entrepreneur: Discover the Entrepreneur inside of You .. 8
Lesson Plan UNIT 1 ................................................................................................................. 10
Lesson 1: ................................................................................................................................. 14
Lesson 2: ................................................................................................................................. 14
Lesson 3: ................................................................................................................................. 14
Lesson 4: ................................................................................................................................. 16
Lesson 5: ................................................................................................................................. 17
Lesson 6: ................................................................................................................................. 17
Lesson 7: ................................................................................................................................. 17
Lesson 8:................................................................................................................................ 19
Lesson 9:................................................................................................................................ 19
Lesson 10: ............................................................................................................................. 19
Lesson 11: ............................................................................................................................. 19
Lesson 12: ............................................................................................................................. 19
Lesson 13: ............................................................................................................................. 20
Lesson 14: ............................................................................................................................. 20
Unit 2: Developing a business idea ................................................................................... 21
Lesson Plan UNIT 2 .............................................................................................................. 22
Lesson 1:................................................................................................................................ 25
Lesson 2:................................................................................................................................ 25
Lesson 3:................................................................................................................................ 25
Lesson 4:................................................................................................................................ 27
Lesson 5:................................................................................................................................ 27
Lesson 6:................................................................................................................................ 27
Lesson 7:................................................................................................................................ 28
Lesson 8:................................................................................................................................ 28
Unit 3: Elaboration of a business plan - The business start-up roadmap................... 29
Lesson Plan UNIT 3 .............................................................................................................. 30
Lesson 1 .................................................................................................................................. 32
Lesson 2: ................................................................................................................................. 34
Lesson 3: ................................................................................................................................. 34
UNIT 4: MARKETING............................................................................................................... 35
Lesson Plan Unit 4 ................................................................................................................... 36
Lesson 1: ................................................................................................................................. 39
Lesson 2: ................................................................................................................................. 40
Lesson 3: ................................................................................................................................. 41
Lesson 4: ................................................................................................................................. 43
Lesson 5: ................................................................................................................................. 44
Lesson 6: ................................................................................................................................. 44
UNIT 5: Organization and management ................................................................................... 45
Background Materials............................................................................................................... 46
Lesson Plan Unit 5 ................................................................................................................... 48
Lesson 1: ................................................................................................................................. 52
Lesson 2: ................................................................................................................................. 52
Lesson 3: ................................................................................................................................. 53
Lesson 4: ................................................................................................................................. 58
Lesson 5: ................................................................................................................................. 58
Lesson 6: ................................................................................................................................. 58
Lesson 7: ................................................................................................................................. 58
Lesson 8: ................................................................................................................................. 58
UNIT 6: Products and Services ................................................................................................ 60
Lesson Plan Unit 6 ................................................................................................................... 61
Lesson 1: ................................................................................................................................. 65
Lesson 2: ................................................................................................................................. 65
Lesson 3 & 4: ........................................................................................................................... 65
Lesson 5: ................................................................................................................................. 66
Unit 7: Finance and Investment ................................................................................................ 67
Lesson Plan Unit 7 ................................................................................................................... 68
Lesson 1: ................................................................................................................................. 70
Lesson 2: ................................................................................................................................. 71
Lesson 3: ................................................................................................................................. 76
UNIT 8: Presentation and Evaluation........................................................................................ 78
Lesson Plan Unit 8 ................................................................................................................... 79
Lesson 1: ................................................................................................................................. 81
Lesson 2: ................................................................................................................................. 81
Lesson 3: ................................................................................................................................. 81
Lesson 4: ................................................................................................................................. 81
Lesson 5: ................................................................................................................................. 81
Lesson 6: ................................................................................................................................. 81
Lesson 7: ................................................................................................................................. 81
Handouts (Teaching- Materials) ............................................................................................... 82
Annex 1. Getting To Know You ................................................................................................ 82
Annex 2. Competence Profile ................................................................................................... 90
Annex 3. Road Map.................................................................................................................. 97
Entrepreneurship Module III
Introduction to the Module for Women in Rural Areas




             Definition of Women Entrepreneurship Learning


According to the target group, this module is designed to enable women the
capacities to acquire skills, know -how and personal development tools which are
necessary to succeed as self-directed small business owners. The main purpose is
to encourage and improve self-esteem and self-confidence of the women. The will
allow women to overcome the typical hurdles and obstacles that will be confronted
by a self-employed woman. This module should be preceded with an introduction to
empower and encourage the learners to take part in the course. This will be
considered as the “Talk Show Concept: Getting Entrepreneurial” empowering
and inspiring women in rural areas to participate in the module.
This module should be offered not as a full time course. This will allow women
learners to gradually be introduced into this new concept of self-employment and
entrepreneurship.
The underlying method is based on a socioeconomic consultation and qualification
approach. Along with financial and market economics aspects, this approach
considers not only personal aspects such as motivation, social background, specifics
of the business sector and mentalities, but also expertise and entrepreneurial core
skills. Methods based on the socioeconomic approach offer specific target orientated
tools. By its very nature, it is an approach that successfully applies gender aspects
in a mainstream context because it recognizes the fact that women and men have
different requirements with respect to their professional lives, needs and situational
perceptions.
Encouraging women towards entrepreneurship includes illustrating successful
examples of women entrepreneurs. This would include projects such as visiting
local enterprises, having the women become aware of their own personal capacities
and inspiring other module learners through group activities. No woman will be self-
employed at the conclusion of this course. This information given during course will
set up the woman to taken the necessary steps towards starting a business. She
must decide on her own what type of institutional assistance she will need to realize
her business idea.




                                                                                    1
Pre-Module: Talk Show Concept “Getting Entrepreneurial”

Aim

The idea of starting up a business as an alternative source of income does not
currently exist. Therefore it is important to establish empowerment measures. A
person has to believe that it can be done, and done successfully. In the talk show
proposed, female entrepreneurs from different business sectors who have
successfully started up their own businesses share their various experiences in an
open dialogue with potential women founders, who have the opportunity to ask all
types of relevant questions.



Objective
The Talk Show Concept has the main objective to empower potential women
founders and to reflect and broaden the view of the entrepreneurial spectrum in
rural areas. Additionally, this will inspire women to participate in the module.


Content

Issues addressed will be the following:
    What is a successful entrepreneur?
    What are the strengths and advantages?
    What are the weaknesses and risks?
    How do entrepreneurs remain optimistic?




                                                                                2
Background Knowledge
Women’s Situation in Kosovo:
Most of the research and analyses conducted by the Government of Kosovo, as well
as civil society and our international partners, concludes with incontestable results
and data affirming that lack of gender equality, and the unequal access of men and
women to various spheres of life, prevents our country’s overall and economic
development, and its reduction of poverty.
From a demographic perspective, women in Kosovo comprise half of the
population.1 Up until the end of the 1980s, a patriarchal family structure was
dominant in Kosovo. One family unit was often comprised of 2 to 3 generations
living together. After the 1990s, immigration abroad and migration from rural to
urban areas accelerated the disintegration of the patriarchal family. Nonetheless,
the renewal of patriarchal traditions accompanied by economic difficulties,
unemployment, poverty, and personal insecurity, have limited the basic rights of
women and girls, mainly in the rural, remote and poor areas.
Patriarchal norms and practices that dominate society in Kosovo are some of the
main causes of discrimination based on gender. The social organization, as well as
the principals on the basis of which the family and society function, consider women
inferior. Men are the main providers of their families, while women are designated
to caring for the welfare of their families and household maintenance, work that is
undervalued and in effect preserves their lower social status.
Although after the war in Kosovo, women’s rights have been reformulated under
concepts of democracy and principles of human rights, the full respect of these
rights is restricted not only by patriarchal mentality, but also difficulties in the
implementation of laws. Low participation of women in decision-making is visible
also in ratio of 1 to 10 in favor of men in the supervisory positions in public
administration.
In Kosovo, dimensions of gender, age, and residence constitute illiteracy. There are
higher levels of illiteracy in rural areas than in urban ones. The data and analysis of
the Household Budget Survey show that women and girls that declared illiteracy
(over 7 years of age who do not read and write) are at 9.1%, while this index for
boys and men is at 2.8%. Approximately 14% of women (over 15 years of age)
living in rural areas are declared as illiterate, while the percentage of men is below
10%.2
The poor infrastructure of roads and various issues of security are factors that
affect the enrolment of girls in schools. According to a publication of the Riinvest
Institute, adults (over 16 years old) in rural areas travel on average 18 kilometres
to reach their schools.3
Women that live in poverty suffer the consequences of poor health, and it is this
group that continues to experience high maternal mortality rates despite visible
improvements in the past couple of years.


1
 It is estimated that the population of Kosovo in 2005 was 2, 070, 000 of which 1,010, 000 were women
and 1,060,000 men.
2
    ESK; “Kosovo in figures 2005”, v.c pg. 22
3
    Ibid


                                                                                                   3
The health sector in Kosovo does not meet the needs of citizens for professional
health-care.
Women’s economic rights are also presented by: the level of participation in the
labour force, maintenance of employment, and compensation. Women’s
employment in Kosovo is limited by a series of factors, such as the obligation and
responsibility for childrearing, housework, educational level, limited access to
professional development, property, and possibility for receiving loans. Data
collected from financial institutions show that women hold only 3% of loans.4
Research conducted by the Ministry of Trade and Industry in 2004, emphasizes that
from the 500 registered small and medium-sized businesses, 98% were registered
to men and only 2% to women.
Support for the promotion of equal economic participation, and the raise in levels of
women’s autonomy in the field of economics is conducted through the following:
promoting the training of women in business, assess to training at work, promotion
of women’s participation in information technologies, possibilities for professional
training, access to loans for business start-ups, protection and support to women
heads of households – offering them access or re-training for re-entering the labour
force, platform for managing child-rearing and professional engagement.


Note; This summery is part of the Kosovo Program for Gender Equality
2008 – 2013, which has been approved by Kosova government on April 24,
2008.


Preparation: Talk Show

Women in the Economy of Kosovo

Recommendations: The moderator of the Talk Show will follow this structure of
questions to establish a solid overview of the current situation of women in
business in Kosovo. This will discuss all elements relevant to women, as both an
encouragement but also as a devise where women can have a clearer picture of the
current situation in Kosovo. It is recommended that the moderator(s) conduct
independent research to assemble this information and fulfill this criterion. It is
recommended that the Moderator seek the most recent edition of Women
Entrepreneurs in Kosovo, published by the Office of Gender Affairs of UNMIK and
the Women’s Business Association “SHEERA”.
1. What type of business sectors contains women entrepreneurs? Which sectors
have the highest number of entrepreneurs? Which sectors have the least number of
women entrepreneurs?
Examples are:
a. Hair Salons
b. Child Care
c. Health Care
d. Agriculture (what fruits and vegetables are being produced?)
4
    Procredit Bank Report.


                                                                                   4
e. Textile (retail stores, seamstress, handcraft production, wool processing and
production)
f. Milk Production and Processing
g. Bakery/Pastry
etc.
2. Where are women managers?
a. Travel Agencies
b. Children Care Centers
c. Health Care
d. Driving School
etc.

3. Where are these businesses located? Villages? Cities? Towns? In homes? Offices?
What prevents them from having offices? Why that particular location?

4. How is the woman’s family involved? How is the community involved? What local
infrastructure exists to support them? (Meaning other projects for local
development of women) For better or worse?
Are families and communities supportive of future initiatives?

5. Women who are successful? Where are they? What are they doing? What type of
obstacles are they currently facing? What inhibits further development?
a. Family Obligations
b. Stress/Health Condition
c. Family not supportive
d. No market demand
e. Located too far from market demand
f. Location of business
g. Not enough space/land
h. Lack of qualified human resources
i. Finances
j. Legal Infrastructure
k. Controlled Imports/Exports
6. Where are they getting their advice? Government Institutions? Business Service
Providers? Previous Educational background? Business Partners? Chamber of
Commerce? Business Associations? Training Programs?

7. Who are their consumers? Are the consumers in the same municipality? Do they
have foreign consumers?
8. Are there any distribution systems for women-made-products?

9. Urban vs. Rural? Where are the most businesses registered by women?

10. Future: Are there any new laws/regulations that will support or inhibit further
development? Other factors: Kosovo status, credit institutions, fiscal policies, taxes,
lack of infrastructure (energy, water, and sewage), licensing.


                                                                                     5
Talk Show Methodology

This pre-module is consists of a panel of women entrepreneurs who will be invited
to discuss their experiences in entrepreneurship. There should be at least two
moderators who will assist in keeping the Talk Show focused on its objectives and
offering additional support of the women learners.
The duration of the Talk Show is at maximum two and a half hours. It is
recommended that this be held in the afternoon due to the traveling of learners and
child care arrangements.


Agenda:

   1. Welcoming the listeners and the presenters
   2. Short idea of the Concept and short overview about women
      entrepreneurship in Kosovo
   3. Idea of the businesswomen by the presenters
   4. Presentation businesswomen themselves and her business ideas
   5. Starting Question: Who is already self-employed, who intends to be
      based been able to?


Questions for the Talk Show
(Moderators conduct interview)

   1. Status today
       Where are you today, what have you reached?
       Which entrepreneurial strengths do you have?

   2. Looking back
       How did you make the decision to become an entrepreneur in Kosovo?
          What were your motives?
         Under which condition did you start?
         Once again, would you do everything exactly the same again or
          change something? If so, what? And Why?
         Have your received any advice during the start up of your business?
         Who has supported you? What institutions? How?

   3. Profession and journey through life
       What have you done before your started a business?
       Are you using any of your professional qualifications in your business?

   4. Expectations
       Were your impressions realistic of the self-employment?
       Did you have to revise particular impressions due to your earlier
          experiences?



                                                                                  6
   5. Being self-employed/ Being a businesswoman
       What does being self-employed or a businesswoman mean to you?
       What do you see as a challenge in entrepreneurship?
       What do you think about self-employment in Kosovo?
       Was your family supportive of your business aspirations? Mentally?
          Physically? Financially?

   6. Strengths and successes
       What are your strengths and what can you offer your customers?
       What do you have more (or better) then your competitors?
       How do you reach your customers as you proceed?
       Which does "niche to the market" mean for you?

   7. Crises as a Chance
       Do you remember a project which has gone wrong?
       Are there "traps" in which you have initially put your foot in?
       Where do you see weaknesses of young businesswomen of your
          Kosovo?
         What has contributed to the mastering of crises?
         Would you take up advice to get out of the crisis?

   8. Practical tips
       Doubt and existential fears; the right preparation on being a woman
          entrepreneur; Canvassing; Networking; Give tips to the listeners of
          Kosovo for running a business to establish contacts
         If you could give the listeners a tip, which one would you give?

   9. Final
       What was the greatest evolutionary step which you have gone
          retrospective in your own business?
         What would you do differently or what would you pay attention to if
          you could start newly in Kosovo or at all today once again?

Recommendation for Moderators: Spontaneous questions shall be
allowed from the listeners and that the presenters can steer this themselves.
Moderators should monitor the question type, not allowing personal questions or
questions irrelevant to the Talk Show Objectives.




                                                                                  7
Introduction
The following units may be implemented based on the needs and current situation
of group members. This may also be divided into half days and full day, again
based on the capacities and capabilities of the group. The following time tables of
the units are only structure and can be combined.


Unit 1: Characteristics of a successful Entrepreneur:
Discover the Entrepreneur inside of You




Objective
The learners should be able to identify ones own capabilities, skills and knowledge
to be a successful entrepreneur.

AIM
The aims are:
      Raise self awareness of        the   implications   of    self-employment   and
       starting/running a business
      Enable learners to become empowered with knowledge
      Increase learners’ levels of confidence and self-esteem



Specific Objectives
At the conclusion of the Talk Show: Getting Entrepreneurial, the learners should be
able to identify the attributes, capacities, and experiences of successful women
entrepreneurs. The identification of strengths and weaknesses, advantages and
risks, will provide the learners sufficient information to decide whether they proceed
or not. The comparison of the attributes of one’s self and the other women
entrepreneurs will offer the women tools of inspiration. These tools will be the
amazing similarities discovered.




                                                                                     8
Performance criteria
The learner must be able to identify the personal characteristics (capabilities, skills,
experiences) to be a successful entrepreneur. Concerning the target group, the
learners are able to identify women specific hurdles and obstacles. The learner
must be able to review and identify her own entrepreneurial characteristics and
describe her role in a team.


Methodology: Discover the Entrepreneur inside of You
Focus of the workshop is the discovery of personal competence and potentials as
an entrepreneur, examined under various aspects and followed by concrete steps to
realization. A mix of theoretical input and creative methods, individual and
teamwork, reflection, feedback and discussion makes the workshop a participative
working experience for the learners.


Content of the workshop
Strengths and weaknesses, motivation and potential, types of entrepreneurs,
dealing with resistance, “my business idea”, objectives and measures,
empowerment-teams.




                                                                                      9
Lesson Plan UNIT 1
Day 1
Lesson               Objective                              Content                          Method             Materials
and
Credit
Hours

Lesson 1: Arrival             Introduction by Trainers                           Large Group:               Table, Chairs,
1 CH 5
          Getting to know the Introduction and expectations of Program           Round Table                Agenda,
          Aims and                                                                                          Coffee and Biscuits
          Objectives          Meeting Each other: Name, Age, Married Status,
                              Economical Situation, Motivation to participate in
          Introduction of
                              the module, Business Idea,
          Moderators and
          Panelists

Lesson 2: Able to identify and ‘Personal qualifications and competence-profile’           Working           Biography-based
2 CH      review her own       Identification and presentation of personal                Individually      profiling
          entrepreneurial      strengths and potentials to group                          And               questionnaire,
          characteristics                                                                 Large group       handout

Lesson 3: Identification and            Definition of an entrepreneur                     Large Group       Presentation on Flip
2 CH      comprehension of                                                                Work              Chart
          the capabilities,             Housewives are entrepreneurs too!                                   Other supporting
          skills, and                                                                                       documents,
          experiences of a              Workshop: ‘Types of entrepreneurs’                Review: Small     handout
          successful                                                                      Groups
          entrepreneur                  Review Talk Show Materials including objectives
                                        and aims                                          Combination of
                                                                                          all participant
                                                                                          notes

5
    CH- Credit Hours are 45 minute lessons


                                                                                                                                   10
Lesson         Objective                          Content                          Method          Materials
and
Credit
Hours
                             Characteristics of Entrepreneur: Soft Skills vs.
                             Professional Skills and Technical Skills
           Objective:
           Successful
                             3 Step Planning:
           entrepreneurs
           always plan       1) Vision: Where do I want to go?

                             2) Strategy: How can I reach this?

                             3) Operational Level: What do I do now?


Lesson 4   Identify own      Am I an Entrepreneur?                              Individual     Checklist Handout
2 CH       entrepreneurial                                                      Work
           skills

Lesson 5   END of DAY        Final Thoughts: End o f he Day Impression          Group          Moderation Cards
1 CH                                                                            Presentation




                                                                                                                   11
DAY 2
Lesson Objective             Content                                           Method         Material
and
Credit
Hours

L6      Reflection of      Enquiry: What was important for you yesterday?      Large Group:   Table, Chairs,
1 CH    Learning Outcome 1                                                     Round Table    Agenda,
                                                                                              Coffee and Biscuits

L7      General Hurdles and Current Situation of Women in Kosovo          Large Group         Table and Chairs
2 CH    Women Specific      Obstacles and Hurdles in general and women-
        Hurdles and         specific
        Obstacles
                            Restricted Resources: Time, Skills, and Money

L8      Visions of the Future Creative preparation for an entrepreneur         Small groups   Table and Chairs
3 CH                         Question: When I was younger, I always wanted
                             to become…
                                                                                              Paper and Pen
                             First impressions and ideas for self-employment


L9      Presentation: My      Gathering ideas and impressions of self-         Group Work     Flip Chart
1 CH    Vision for the Future employment matching with current situation of                   Pen and Paper
                              women
                              Result: Business Idea

L 10    END of DAY           Final Thoughts: End o f he Day Impression         Group          Moderation Cards
1 CH                                                                           Presentation




                                                                                                                    12
Day 3
Lesson Objective            Content                                            Method         Material
and
Credit
Hours

L 11    Reflection of      Enquiry: What was important for you yesterday?      Large Group:   Table, Chairs,
1 CH    Learning Outcome 2                                                     Round Table    Agenda,
                                                                                              Coffee and Biscuits

L12     Discussion: Support Discussion of cultural differences     in   values, Large Group   Table and Chairs
2 CH    Systems             traditions, and women identities                                  Checklist
                            Ways and conditions for successful networking :
        Networking I        cooperatives                                       Small groups

                            Small Groups: Who will support them

L 13    Willing to create and Empowerment Team Building (3 to 4 women):                       Table and Chairs
2 CH    start ideas           visiting local enterprises after workshop as
                              preparation for next unit

L 14    END of DAY          Final Thoughts: End o f he Day Impression          Group          Moderation Cards
1 CH                                                                           Presentation




                                                                                                                    13
Background Materials




Lesson 1:
      As the women are introducing themselves to the group, the trainer should be
aware of how much time its taking for one woman to speak. The trainer must act as
a moderator and keep the woman on track and go through all learners efficiently,
while not making them feel rushed. The main objective is to ask about their main
reason for wanting to join the course and if they took part in the talk show. The
woman should relate this program to their family meaning that they address how
become self employed would influence their families. Additionally, the trainer
should ask if the women have any family members that are active in
entrepreneurship.


Lesson 2:
      This lesson’s objective is to be able to identify and review one’s own
entrepreneurial characteristics. By completing the Competence Profile: Biography
based profile, the trainers have to point out that they don’t have to mention things
they currently have. But to mention also skills they have learned before and not
necessarily use today.
       The trainers should also explain the difference between technical skills and
personal characteristics. At presentation, the learners should present the skills that
occur the most in their profile. This reoccurring theme is their biggest strength, in
which should be further nurtured by this course. Please see Annex for Competence
Profile.


Lesson 3:
        This objective for this lesson is to identify and comprehend ones capabilities,
skills and experiences of a successful entrepreneur.
Definition of Entrepreneur
What exactly is an entrepreneur? A word borrowed from the French, the dictionary
defines it as “A person who organizes, operates, and assumes the risk for a
business venture.”6
          According to this definition of an entrepreneur, all women are
                                  entrepreneurs!




6
      2   Roget’s International Thesaurus, (4th ed.) (1977). New York: Harper & Row, p. 830.1.




                                                                                                 14
At this point in the lesson, the trainer must review the Talk Show materials, and in
small groups the learners should be able to identify characteristics of
entrepreneurs. Therefore, the following factors will be addressed by the woman
learners.
What qualities should an entrepreneur/ self employed individual possess?

      Technical qualifications / business knowledge (Legal considerations,
       Registration issues, Taxation) Sales competence and experience
      Supervisory skills (Delegation, managing employees, book keeping)
      Personal characteristics such as: self motivation, stamina, optimism, self
       confidence, courage, healthy constitution, high tolerance for uncertainty and
       frustration, decision-making and risk-taking ability, social skills and ability to
       build trust and inspire other people.
      Experience and network of contacts in the chosen sector /branch
      Business skills: Business concept, product/service development, market
       research, cost analysis, product/service planning, financial planning sources,
       advertising and promotion planning, negotiating, purchasing, computing and
       informational systems, employee compensation/pension, employee hiring
       and relations, legal counseling, and decision making

One main characteristic of a successful business person is that they developed a
plan how they would reach their goal. The three steps of planning are Step 1:
Vision, Step 2: Strategy, and Step 3: Operational Level. To help explain this, use an
example such as apples. In order to produce apples, you must first know what type
of apples you’d like, prepare the soil, buy the apple tree, and then care for the
apple tree until the apples begin to grow.




                                                                                      15
3 Steps Planning:

1) Vision: Where do I want to go?

2) Strategy: How can I reach this?

3) Operational Level: What do I do now?


      Vision                         Strategy                         Operational Level




Background Information
Time, space and leisure play an essential role in the planning of a business. The
first question will always be, where I (vision) would like to be, a strategy then must
be developed as I convert my vision of the business of my own to think at the
operative level which steps I must start concrete. This three step-concept
correspond to the didactic planning of the unit Discover the entrepreneur inside of
you (vision development) about the strategy planning (business plan training) up to
the concrete putting into action (individual advice). This is an example of the
underlying didactics of the socio-economic approach at the same time and how the
teachers can use an instrument to the self reflection.


Lesson 4:
          In this section, Lesson 4 includes the identification of one’s own skills by
completing the checklist. This is a check list which is designed to help the learners
decide whether being self-employed is suitable for them, whether they are
uncertain of some things or whether they are engaged to become involved
elsewhere. This also figures out if they must acquire knowledge in certain areas
before continuing in entrepreneurship.

           Of course the learners can receive only first impressions by this self
check. This check list shall encourage them to check their idea for all its vital parts.
In addition, this will provide the learners more information such as what to consider
and take into account everything at an existence foundation.




                                                                                      16
Lesson 5:
      At the conclusion of the day, the trainer should present the model of life and
the learning spiral which is learning mechanism that illustrates the success of a
business is much like a spiral rather than stairs. There are setbacks again and again
in the different learning and life phases but moments of the “compression” push
you again to a higher level.

Life and learning spiral:




Lesson 6:
Enquiry: What was important for me yesterday?
      At the start of each session, the materials and objectives covered in the
previous session should be reviewed. This allows the material to be once again
presented to the women, and the trainer should also take any questions that the
learners may have.




Lesson 7:
There is no employment especially for a
woman simply because she is a woman
and no employment especially for a man
just because he is a man. The talents
are
equally distributed among both
sexes.Platon, Politeia




                                                                                  17
Current Situation of Women in Kosovo
During this lesson, the trainer should have already prepared a presentation about
women’s situation in Kosovo that would include various types of information and
data including statistics concerning women entrepreneurs. This has been presented
as an introduction to the Talk Show, but the trainer will provide more detailed
information. This will be presented to the class as a lecture, including handouts with
supplemental information in which they can take home and review on their own.
The trainer should also attempt to include information regarding the family situation
of an average Kosovar woman, keeping in mind that these types of issues may
arise during the course.
The trainer has to gather obstacles and hurdles for both men and women.           For
example:
General Hurdles

      No market demand
      Located too far from market demand
      Location of business
      Not enough space/land
      Lack of qualified human resources
      Finances
      Legal Infrastructure
      Racketeering
      Controlled Imports/Exports

Women’ specific

      Family Obligations
      Stress/Health Condition
      Family not supportive
      Transportation
      Telephone
      Computer – Internet access
      Secure housing
      Working utilities




                                                                                   18
Lesson 8:
Vision of the Future
       In small groups, the trainer will have the learners ask themselves the
following question: ‘When I was younger, I always wanted to become a...’. This is a
mechanism for creative thinking, where the learners can connect themselves back
to a time where they did not have family obligations and were free to dream. This
creative process, in some women, will ignite the fire of entrepreneurship. They
might become so focused on their vision, that they will make sure it becomes a
reality.



Lesson 9:
       Once each group has arranged their vision, this will be presented to the
class. After each participant presents, the trainer should ensure that each are given
a round of applause as encouragement of their vision.



Lesson 10:
       This last section of the unit will be a reflection session, where the entire class
gets together and discusses their final thoughts on the lesson’s learned.



Lesson 11:
Enquiry: What was important for me yesterday?
      At the start of each session, the materials and objectives covered in the
previous session should be reviewed. This allows the material to be once again
presented to the women, and the trainer should also take any questions that the
learners may have.



Lesson 12:
Networking Support
       The purpose of this lesson is to find support systems and to overcome the
depressive situations of women in rural areas. It is important for the participant to
feel the support of others, as a means of encouragement and inspiration. The
following questions should be addressed to the learners so that they may identify
their support network.




                                                                                      19
Have you talked about owning a business with significant people in your life?     Yes /
No
If Yes, who have you talked to? (Please check all that apply.)
                   spouse or partner
                   parents or step-parents
                   brothers or sisters
                   grandparents
                   other adult relatives
                   friends
                   business owners
                   other (please specify)



Lesson 13:
       Lesson 13 will include something called an ‘empowerment team’. The trainer
will separate the class into teams, which will go into the local market area and
research what type of businesses is present. This assessment should include other
such factors such as business location, size, types of commercial/signs, etc.
Additionally, each team should be given a camera to take pictures of store fronts
and signs for later use.


In the “empowerment team” the women learners become strengthened by an
interdisciplinary group of other female founders. They not alone, they can support
each other during the whole planning process and in between the units. These
teams will remain for the entire module. So these teams should arrange a network
of support, for example, if they live close to each other they can carpool or make
other sort of arrangements where they ease the stress of being self-employed.


Lesson 14:
       This last section of the unit will be a reflection session, where the entire class
gets together and discusses their final thoughts on the lesson’s learned.




                                                                                      20
Unit 2: Developing a business idea

Objective
The learners should be able to generate, compare and select a business idea
empowered by working in a team.



Specific Objectives
Objectives of the workshop are to define innovative sectors for new businesses.
Based on their qualifications, potential the learners will be encouraged to take
advantage of their competence in a profitable way. One focus of the workshop is
the support from the success teams.


Content of the Unit
potential new business sectors, market opportunities and development, competence
profile, idea development, first assessment of ideas, predefinition of next steps. As
a learning outcome, the learners should be able to generate, compare and select a
business idea by being inspired of working in groups.


Performance criteria
The learner must be able to generate business ideas, compare the business ideas
with team members and selecting the business idea with highest perspectives of
entrepreneurial success matching existing with required entrepreneurial capabilities
and skills; according to feasibility and personal situation.




                                                                                  21
Lesson Plan UNIT 2
Day 1
Lesson Objective              Content                                           Method            Material
and
Credit
Hours

L1      Arrival               Introduction by Trainers                          Large Group:      Table, Chairs,
2 CH    Getting to know the   Introduction and expectations of Program          Round Table       Agenda,
        Aims and Objectives                                                     Flipchart         Coffee and Biscuits
                              Each empower team presents their results of the
        Presentation of the   local market, what worked what did not worked?
        empower teams

L2      Getting familiar with Trends                                            Small group       Presentation on Flip
2 CH    the local market                                                        And               Chart
                              Needs
                                                                                Large group       Other supporting
                              Future markets: Where is the future?                                documents
                                                                                                  Handout

L3      Identification and    SWOT Analysis of Local Market                     Large Group       Presentation on Flip
3 CH    comprehension of                                                        Work              Chart
        the screening and     The missing link…                                 Review: Small     Other supporting
        filtering ideas to                                                      Groups            documents
        defined criteria                                                        Combination of
                                                                                all participant
                                                                                notes

L4      END OF DAY            Final Thoughts: End of the day Impressions        Group
1 CH                                                                            Presentation




                                                                                                                         22
Day 2
Lesson   Objective            Content                                          Method            Material
and
Credit
Hours

L5        Reflection of       Enquiry: What was important for you yesterday?   Large Group:      Table, Chairs,
3 CH     previous day         New ideas arrived???                             Round Table       Agenda,
                                                                               Flipchart         Coffee and Biscuits
                                                                                                 Moderation cards

L6       Screening and          If I could I would….                           Small group       Presentation on Flip
2 CH     filtering the ideas                                                   And               Chart
                                Getting entrepreneurial – developing ideas
         corresponding to                                                      Large group       Other supporting
         defined criteria:                                                                       documents
         feasibility, market                                                                     Handout
         perspectives,
         market potential
         sustainability, social
         responsibility.

L7                            Presentation: SWOT Analysis results : Why I      Large Group       Presentation on Flip
2 CH                                                                           Work              Chart
                              choose this idea
                                                                               Review: Small     Other supporting
                                                                               Groups            documents
                                                                               Combination of
                                                                               all participant
                                                                               notes


L8       END OF DAY           Final Thoughts: Visualize your Business Vision
1 CH



                                                                                                                        23
Lesson   Objective   Content            Method   Material
and
Credit
Hours
                     through pictures




                                                            24
Lesson 1:
Enquiry
       This start of the session will include presentations given by the
‘empowerment teams’. The trainer should give the teams a structure to follow for
presentation purposes. This would include Market Aspects vs. Personal Aspects. For
market aspects, customers and vendors should be incorporated and concerning
personal aspects, they have already completed this type of assessment in previous
units. Additionally, the teams should realize that a business can be products or
services, competitors, issues regarding transportation and location, (covered in Unit
4) issues of production materials and production flow (to be covered in Unit 6).


Lesson 2:
Getting Familiar with the Local Market
      In small groups the learners should reflect upon the presentation in lesson 1,
and pointing out the differences between trends, needs, and future needs. The
teams should discuss the originality of the businesses they saw in the field. Where
these businesses created out of convenience, need, desire, etc?


Lesson 3:
       The SWOT Analysis will be derived from the information gathered and
observation made while the empowerment teams where out in the field visiting
local markets.
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The
first ones are internal, the last two are external views. Because the SWOT analysis
is mainly done by the founder of the start-up or by the internal managers who e.g.
need that to identify the right marketing strategy etc. it is very subjective. This tool
is more a guide in which direction the way can go.
Some rules for generating a successful SWOT analysis:
Short and simple – the main point should be seen easily, no grey areas!
Realistic and objective as much as possible – the outcome should give hints for
improvement which then can turn to chances!
Distinguish correctly – situation today and wish of tomorrow are different aspects!
Comparison in relation to competitors – the objective situation of SWOT is then
more realistic and help to avoid overestimation!




                                                                                     25
SWOT Analysis Template - State what you are assessing here. Please note that these criteria
examples relate to assessing a new business venture or proposition. Many listed criteria can apply to
other quadrants, and the examples are not exhaustive. You should identify and use any other criteria
that are appropriate to your situation.

Criteria examples                  strengths           weaknesses          Criteria examples
Advantages of proposition?                                                 Disadvantages of proposition?
Capabilities?                                                              Lack of competitive strength?
Competitive advantages?                                                    Reputation, presence and
USP’s (unique selling points)?                                             reach?
Resources, Assets, People?                                                 Financials?
Experience, knowledge, data?                                               Own known vulnerabilities?
Financial reserves, likely                                                 Timescales, deadlines and
returns?                                                                   pressures?
Marketing – reach,                                                         Cashflow, start-up cash drain?
distribution, awareness?                                                   Continuity, supply chain
Innovative aspects?                                                        robustness?
Location and geographical?                                                 Effects on core activities,
Price, value, quality?                                                     distraction?
Accreditations, qualifications,                                            Reliability of data, plan
certifications?                                                            predictability?
                                                                           Morale, commitment,
Processes, systems, IT,
                                                                           leadership?
communications?
                                                                           Accreditations, etc?
Cultural, attitudinal,
behavioural?                                                               Processes and systems, etc?
Management cover,                                                          Management cover,
succession?                                                                succession?
Philosophy and values?

Criteria examples                 opportunities           threats          Criteria examples
Market developments?                                                       Political effects?
Competitors vulnerabilities?                                               Legislative effects?
Industry of lifestyle trends?                                              Environmental effects?
Technology development and                                                 IT developments?
innovation?                                                                Competitor intentions –
Global influences?                                                         various?
New markets, vertical,                                                     Market demand?
horizontal?                                                                New technologies, services,
Niche target markets?                                                      ideas?
Geographical, export, import?                                              Vital contracts and partners?
New USP’s?                                                                 Sustaining internal
Tactics: eg, surprise, major                                               capabilities?
contracts?                                                                 Obstacles faced?
Business and product                                                       Insurmountable weaknesses?
development?                                                               Loss of key staff?
Information and research?                                                  Sustainable financial backing?
Partnership, agencies,                                                     Economy – home, abroad?
distribution?
                                                                           Seasonality, weather effects?
Volumes, production,
economics?
Seasonal, weather, fashion
influences?


             SWOT analysis template – a free resource from www.businessballs.com




                                                                                                    26
Lesson 4:
       This last section of the unit will be a reflection session, where the entire class
gets together and discusses their final thoughts on the lesson’s learned.



Lesson 5:
Enquiry: What was important for me yesterday?
      At the start of each session, the materials and objectives covered in the
previous session should be reviewed. This allows the material to be once again
presented to the women, and the trainer should also take any questions that the
learners may have. The question of the day is: WHERE ARE THE MISSING
LINKAGES FOR RURAL AREAS? The learners should be able to discover the missing
linkages for their particular area based on the field visit and SWOT Analysis.



Lesson 6:
        The screening and filtering of their particular idea, corresponding to defined
criteria, feasibility, market perspectives and personal situation is the objective of
this lesson. This will be implemented by using their SWOT Analysis, but placing
their business idea as the focal point. Meaning that they will begin to assess and
evaluate their business with the critical eye of market research. The following
questions should be used to assist the learners in filtering their ideas.
Does my business vision match my personal situation and conditions?
* Household responsibilities and earning an income
* Financial independence
* Care of children


Evaluating your business idea: Does it arise from:
* Your professional training
* Your desire to fulfill a dream
* A general market trend
* An observed/assumed market gap?




                                                                                      27
Lesson 7:
       The information gathered for lesson 6 will be presented by each participant.
They should explain their thought process as to how they discovered each strength,
weakness, opportunity, and threat. This has been designed so that the trainer may
identify how they are using this information to strengthen their business idea.



Lesson 8:
       This last section of the unit will be a reflection session, where the entire class
gets together and discusses their final thoughts on the lesson’s learned. This will be
implemented by having the class draw or sketch themselves and where they will be
in 3 years (since they have become self-employed.
Each participant will present their sketch and draws to the entire class, with only a
short description of why they choose that vision, what does it mean for their
families, and most importantly where they will be in 3 years.




                                                                                      28
Unit 3: Elaboration of a business plan - The
business start-up roadmap

Aim
This unit gives learners the opportunity to undertake more detailed business
planning through the setting of aims and targets and outlining a planning program:
The roadmap.



Objectives
Business plan / Business start-up Roadmap
The learners learn which steps are necessary to start and to run their own business
and the contents and task of a written business plan. Objective of the workshop is
that the learners understand the importance of a detailed plan. A mix of theoretical
input and practical exercises makes the training effective for the learners. The
training course is combined with the empowerment team concept.



Performance criteria
Working in a team, the learner must be able to identify the relevant elements of a
business plan and to decide the structure of a business plan. The learner must be
able to present the structure of a business plan.




                                                                                 29
Lesson Plan UNIT 3
Day 1
Lesson   Objective              Content                                            Method         Material
and
Credit
Hours

L1       Arrival                Introduction by Trainers                           Large Group:   Table, Chairs,
3 CH     Getting to know the    Introduction and expectations of Program           Round Table    Agenda,
         Aims and                                                                  Flipchart      Coffee and Biscuits
                                The Business Start-up Road Plan assists in
         Objectives This unit                                                                     Handout
                                developing the business concept and ensuring its
         gives learners the
                                viability.
         opportunity to
         undertake more               About the founder
         detailed business            Presentation of the Business
         planning through
         the setting of aims          Market Analysis
         and targets and              Capital Requirements
         outlining a planning
         programme:                   Turnover/Revenue planning

         The roadmap

L2                              Reflect, how the roadmap assists to overcome Large Group          Presentation on Flip
3 CH                            the women’s specific hurdles                  Work                Chart
                                                                              Review: Small       Other supporting
                                Presentation: Business Offer and Target Group
                                                                              Groups              documents
                                                                              Combination of
                                                                              all participant
                                                                              notes
L3       END OF DAY             Final Thoughts: End of the day Impressions         Group          Presentation on Flip
1 CH                                                                               Presentation   Chart


                                                                                                                         30
Lesson   Objective   Content                                      Method   Material
and
Credit
Hours
                     Visualize your Road map –where do you need            Other supporting
                                                                           documents
                     help?




                                                                                              31
Lesson 1


Aim
The Business Start-up Road Plan assists in developing the business concept and
ensuring its viability.



Methodology
The Road map as a didactic planning a controlling instrument is showing the
connections between content and learners and teachers.
It is for structure the planning and start phase, it is not only a description of the
idea of business, a market analysis, the capital requirements, the finance plan and
the sales planning contains. The Road Map focus upon individual prerequisites,
Qualifications and knowledge, motivation as well as social environment just the
same in the look like economic and business management aspects.
This will be presented to the learners as a guideline for the following units since
much of its material will be covered later on in the course.


Road Plan
About the Founder
       Personal motivation and family situation
       Professional qualifications and education

Presentation of the Business
         Type of business
         Legal structure
         Registration issues
         Number of owners
         Business offer
          Target group
         Location
         Size and inventory requirements
         Organization structure
         Number of employees, roles and responsibilities
         Hours of business operation
         Marketing, Advertising and Public Relations




                                                                                  32
Market Analysis
      Needs analysis
      Location
          Community/Neighborhood
          Local administrative structure
          Infrastructure
      Competition
          Competitive situation
          Your unique strengths
Capital Requirements
      Start-up costs
      Investments
      Liquid cash reserves
      Monthly operating costs
      Yearly operating costs
      Monthly living expenses
      Yearly living expenses
      Initial inventory requirements
Turnover/Revenue planning
        Minimum revenue
        Target revenue
        Price calculation


Background Materials
       The trainer will reintroduce the Road Map for a Business Plan and will have
the learners begin to complete the business plan based upon the information
gathered to this point in the course. For those elements that have not been
covered, the trainer will give short explanations-overview of the importance of this
element and the meaning/definition of that term. At the presentation of the Road
Map, the trainer should link each element of the Road Map to the Units that will be
following this particular Unit.

To explain the Idea of the Road map, the following questions would help:

For example, Presentation of the Business
Type of businesses:
   Service
   Production
   Trade
   Other
Please note that the legal structure and registration issues, depend on
the number of owners.


                                                                                 33
Lesson 2:
       This lesson will be implemented by using the Road Map, to assess the issues
of a rural woman and how those issues can be overcome, again by using the Road
Map. The trainer should also discuss that if any changes are to be made on their
Business Plan in progress, then other elements of the plan would have to adjust
accordingly. The trainer here should provide some examples such as if the number
of employees increase or decrease, and then the registration would also have to
adjust to those figures.
As an exercise, the learners should be able o describe their business idea, business
offer, and target group concretely, based upon the previous units and the lesson of
this unit. This should be presented before the class with limited time, to allow the
participant to describe their business to-the-point and briefly.


Lesson 3:
Final Thoughts:
      In this last lesson, the learners will be asked to visualize their Road Map and
assess where they need assistance. This will be implemented again through the
empowerment teams




                                                                                  34
UNIT 4: MARKETING

Objective
The learners should be able to develop a basic marketing plan.



Content
The content includes to identify the market competitors and forces, conduct a
market research and establish methodologies and tools, define the target group,
establishing business location, creating unique strengths, marketing mix: product,
price, distribution and promotion.



Performance criteria
The performance criteria for this unit will be a written marketing plan as an element
of the business plan.




                                                                                  35
Lesson Plan Unit 4
Day 1
Lesson   Objective          Content                                         Method        Material
and
Credit
Hours

L1       Introduction to    Marketing 101: Open Discussion                  Large Group   Projector and Flip
6 CH     Marketing theory                                                   and Small     Chart
                                                                            groups        Poster Board and
                            Part 1: Commercials/Advertisements in General
                                                                                          printed newspapers,
                            Part 2: Field Trip Pictures: Analysis                         magazines, and
                            Part 3. Advertisement Collage                                 flyers
                                                                                          Radio and Television
                                                                                          or device to play
                                                                                          media files




                                                                                                                 36
Day 2
Lesson   Objective           Content                                      Method            Material
and
Credit
Hours

L2       Identification of  Who is my competitor? What is the strength of Individual Work   Paper and Pen
3 CH     Market Competitors my business that my competitor does not have?
         and forces

L3       Market Research     Market Research 101                          Individual Work   Paper and Pen
3 CH     Methodologies and                                                                  Handouts
         Tools




                                                                                                            37
Day 3
Lesson   Objective              Content                                          Method            Material
and
Credit
Hours

L4       Definition of Target   Who is my consumer/customer?                     Individual Work   Paper and Pen
4 CH     Group,                 Where is my business going to be located?
         Establishment of
         Business Location

L5       Creating Unique        My business is strong because...                 Individual work   Paper and Pen
1 CH     Strengths,


L6       Marketing Mix          Final Thoughts: Marketing Mix: Product, price,   Individual
1 CH                            distribution, and promotion                      presentation




                                                                                                                   38
Lesson 1:
Methodology- Marketing 101: Open Discussion
      The Trainer needs to facilitate an easy-going open discussion with the class,
so that all women express their thoughts about marketing, especially their
impressions to date. The first portion of this open discussion will be just an
introduction to have the learners begin to think about marketing, what they have
seen, what draws them to commercials, where they have seen commercials, etc.
The following questions should be followed for this open discussion, while the
Trainer keeps track of strong observations on the flip chart.
      What was the best commercial you have ever seen?
      What was it about that commercial did you like so much? Was it funny? Was
       it creative?
      Was it on television or on a billboard, or radio program?
      What are the most important factors that make you purchase a product?
       Price? Taste? Convenience? Need vs. Want? Packaging?
Once this section has been completed, and the trainer feels that the learners are
comfortable with marketing and its basic impressions on the women, the trainer will
continue to part 2. Part 2 will present the pictures from the field trip, and again will
moderate an open discussion concerning those pictures. The following questions
can be followed for this section


      What was the first word that came to mind when you saw the sign/display?
      What do you dislike and like about this sign/display window?
      What could be improved?
      Did the display make you want to go inside the store?
      Did the display make you want to not go inside the store?


Part 3 is where the trainer asks the learners to collect flyers, magazines and
newspapers and bring them to class on the day selected for this unit. Printed
advertisements, including newspaper advertisements, magazine advertisements
and flyers which are distributed to homes would offer more insight to printed
commercials for this unit. In small groups of 4 or 5, the trainer should have the
class make a collage of advertisements, separating the poster board into “like” and
“dislike”. At the end of this activity the groups should each present their collages
keeping the questions in parts 1 and 2 as outlines of their presentation.




                                                                                     39
As supplemental to this section, the trainer can prepare media files of recorded
radio commercials and television commercials. Printed commercials would also be
beneficial to this section, including newspaper advertisements, magazine
advertisements and flyers which are distributed to homes.
Another way to do this would be to secure a television and radio, and play each for
a few minutes while the learners wrote done what the commercial was “selling” and
what was their first impression of that particular commercial. Once this has been
done with each type of commercial, the trainer will then ask the class to discuss
those commercials in the same context as part 1 and part 2 above.


The final part of this introductory section will be the creation of the market
strategy, meaning that this strategy would set forth the following:
      How to distribute goods and services to your customers?
      How to notify customers about the start of your business?
      What are the most appropriate marketing tools? A grand opening, an
       inauguration reception, a large media campaign, a direct mailing campaign to
       potential customers or a general distribution of fliers and brochures?
      Does your business have outdoor signage or advertising?



Lesson 2:
Competition Analysis
     Before working individually, the trainer will give a short description of
competition, the definition of competition. This would include the following material:

Three levels of economic competition have been classified:

1. The most narrow form is direct competition (also called category competition or
brand competition), where products that perform the same function compete
against each other. For example, a brand of pick-up trucks competes with several
different brands of pick-up trucks. Sometimes two companies are rivals and one
adds new products to their line so that each company distributes the same thing
and they compete.

2. The next form is substitute competition, where products that are close
substitutes   for one another compete. For example, butter competes              with
margarine, mayonnaise, and other various sauces and spreads.




                                                                                   40
3. The broadest form of competition is typically called budget competition. Included
in this category is anything that the consumer might want to spend their available
money on. For example, a family that has $20,000 available may choose to spend it
on many different items, which can all be seen as competing with each other for
the family's available money.


The trainer at this point will have the women work individually and assess their own
competitors and the type of competition they will face. At the end of this exercise,
the learners will hand in their Competition Assessments for review by the trainer.
The trainer will use the following structure for the learners to use as an outline.


      Define your industry- scope and nature of the industry
      Determine who your competitors are
      Determine who your customers are and what benefits they expect
      Determine what the key success factors are in your industry



Lesson 3:
Market Research 101
       The learners have already begun their market research when they visited
their local market, when they assessed their own personal and financial capacities
and when they developed their business idea. The trainer needs to explain that
there are many types of market research, but this course will concentrate on the
immediate business environment in order to find a potential business for self-
employment.
The previous tasks will be reviewed at this point to illustrate that all this fits into
Market Research 101.
Market Research 101:
   1. Assessment: Personal Capacities           and   Financial   Capacities    (gather
      Competence Profile documents)
   2. Local Market: Types of Businesses (gather notes taken in the field)




                                                                                      41
To continue further, the trainer will describe other elements of the business
environment. These include:
            Competitors
            Market Structure/Needs Analysis:
                i. A needs analysis is an observation of the general industry in
                   which you want to enter with your new business is the critical
                   first step. A closer understanding can be achieved though a
                   daily review of newspapers, technical journals, economic news
                   reports and trade and exhibition information.
               ii. Which of your planned products/services are already being
                   purchased in the market place? How often are they purchased
                   or required? How much money is paid or invested for the
                   product/service? How important is the quality of the offer? What
                   is missing in the current market offer? What are customers
                   demanding from the existing competitors? Are additional
                   services being offered to the customer?
            Government Regulations
                i. What documentation is needed to register your business? Do
                   you need any building permits or licensing for your business?
            Economic Trends
            Technological Advances
            Financial Analysis: Companies, Industries and Sectors


Additionally, the trainer will discuss where “secondary information” can be
obtained. Two local resources would be the Employment Center and the Ministry of
Trade and Industry. Both of these institutions will provide publications of useful
data that can be discussed as a group to provide the learners with a national
perspective of business in Kosova. However, the main point of this would be to
instill in the women that there are outside sources that would provide beneficial
information. Other sources include any research that the trainer gathered at the
start of course. These documents can be printed and given to the learners as
handouts. But again, the purpose here would be to show the learners that
information from other parties is important as well.




                                                                                42
Lesson 4:
Who is my consumer/customer?
       The trainer will ask each participant to start thinking about who is their target
group. This should be broken down into a demographic profile: gender, age group,
rural vs. urban, educational level (if necessary) or specific interests, and income
level (low, medium, high). If some learners have a product or service targeted for
another business (business to business), have the participant create a business
profile to include information as to where those businesses are usually located and
the type of businesses they would target.
Once this profile has been created, the trainer should dictate the following business
decisions which the learners should draft preliminary ideas:
      Product mix you plan to offer
      Prices
      Packaging and presentation of products
      Design of you advertising materials
      Production of goods/services
      Quality of raw materials
      Quantity of production
      Business structure (which is in next unit)
      Size and set-up of your place of business
          -     How many square meters do I need?
          -     Is an outdoor window necessary for my business/
          -     How should the inside look?
          -     Does my business have any special requirements in regards to
                electricity, fire and other installations?
      Business location
          -     Is your business selling directly to the end consumer?
          -     Indirectly to a wholesaler or distributor?
          -     Industrial vs. residential zone
          -     Center city vs. suburbs
          -     Transportation access for consumers: walking, cars, or buses
      Additional offers




                                                                                     43
Lesson 5:
My Unique Business Strength
       Based on the information gathered and analyzed, the trainer should have
each individual write a few sentences starting with “My business is strong
because…”. These sentences should include all objectives reached for Unit 4,
including marketing plan, location, consumer profile, etc.


The marketing mix includes the product, the price, the distribution, and promotion.
It maybe difficult for some learners to set a price at this point in the course, but
encourage them to consider local markets and decide if they are going below that
point or above (for a more exclusive type of product), if they are starting out with
more then one product, have them make a price range.
Distribution would include any transport services or even types distribution
companies they will need to put their product on the market. Promotion would
include the marketing plan they have already established in the previous part of
this Unit.


Lesson 6:
       The trainer should reintroduce the Unit’s objectives and discuss the learner’s
clarity on the unit and its materials.




                                                                                  44
UNIT 5: Organization and management



Objective
The learners should be able to select the most efficient type of organizational and
management structure. The learners should also be mindful of their personal
situation when designing their structure.



Content
The trainer will using the Road Map as a structure to discover the advantages and
disadvantages of a partnership, the types of business registration, legal
requirements and the advisors needed such as attorneys and accountants. The
training course is combined with the empowerment team concept.



Performance criteria
Working in a team, the learners must be able to analyze and compare the different
types of business organization and management, to select the best type of
organization for their own business and identify what professional advice is needed
for the success of their own business.




                                                                                45
Background Materials
Organizational Structure: Introduction

Organizations go through different phases of growth. The first challenge for
executives who wish to grow their organizations is to understand what phase of the
organizational life cycle one is in. Many organizations will enter the decline phase
unless there is in place a rigorous program of transformational leadership
development. Different experts will argue on how many phases there are, but there
is elegance in using something easy to remember. We divide the organizational life
cycle into the following phases:

• Startup. (or Birth) • Growth. This is sometimes divided into an early growth
phase (fast growth) and maturity phase (slow growth or no growth). However,
maturity often leads to • Decline. When in decline, an organization will either
undergo • Renewal or • Death and bankruptcy

Each of these phases present different management and leadership challenges that
one must deal with.

The Start-Up Phase : Getting ready is the secret of success

In this phase, we see the entrepreneur thinking about the business, a management
group formed, a business plan written. For entrepreneurs needing money to kick
start the business, the company goes into the growth phase once the investor
writes the check. For those the don't need outside funds, start-up ends when you
declare yourself open for business.

The Growth Phase : It was the best of times, it was the worst of times. It was the
age of wisdom, It was the age of foolishness it was the spring of hope, it was the
winter of despair. In the growth phase, one expects to see revenues climb, new
services and products developed, more employees hired and so on. The
management textbooks love to assume that sales grow each year. The reality is
much different since a company can have both good and bad years depending on
market conditions. In organizations that have been around for a few years, a very
interesting thing happens—dry rot sets in. There are many symptoms, some of
which we have presented below: That's why many companies have different types
of programs relating to organizational development in place.




                                                                                 46
The Decline Phase : Corporate Insanity is doing the same thing, the same way,
but expecting different results. Using the above definition, one finds a tremendous
amount of corporate insanity out there. Management expects next year to be
better, but doesn't know, or is unwilling to change to get better results. If one can
detect the symptoms of decline early, one can more easily deal with it. Some of the
more obvious signs being: declining sales, relative to competitors; disappearing
profit margins; and debt loads, which continue to grow year after year. However,
by the time the accountants figure out that the organization is in trouble, it's often
too late.

The Renewal Phase : It is not death that a man should fear, but he should fear
never beginning to live.

Decline doesn't have to continue, however. External experts have focused on the
importance of organizational development as a way of preventing decline or
reducing its affects. A story from Aesop's Fables might help here. A horse rider took
the utmost pains with his charger. As long as the war lasted, he looked upon him as
his fellow-helper in all emergencies, and fed him carefully with hay and corn. But
when the war was over, he only allowed him chaff to eat and made him carry heavy
loads of wood, subjecting him to much slavish drudgery and ill-treatment. War was
again proclaimed, however, and when the trumpet summoned him to his standard,
the Soldier put on his charger its military trappings, and mounted, being clad in his
heavy coat of mail. The Horse fell down straightway under the weight, no longer
equal to the burden, and said to his master, “You must now go to the war on foot,
for you have transformed me from a Horse into an Ass; and how can you expect
that I can again turn in a moment from an Ass to a Horse?" One way to reverse dry
rot is through the use of training as a way of injecting new knowledge and skills.
One can also put in place a rigorous program to change and transform the
organization's culture. This assumes, though, that one has enough transformational
leaders to challenge the status quo. Without the right type of leadership, the
organization will likely spiral down to bankruptcy.

Failure : Advice after injury is like medicine after death

As many as 80% of business failures occur due to factors within the executive's
control. Even firms close to bankruptcy can overcome tremendous adversity to
nurse themselves back to financial health. Lee Iacocca’s turnaround of the Chrysler
Corporation is one shining example. In some cases, failure means being acquired
and merged into a larger organization. In other cases, it occurs when an
organization elects or is forced into bankruptcy. This does not signify the
organization ceases to exist since it can limp along for many years by going in and
out of bankruptcy court.




                                                                                   47
Lesson Plan Unit 5
Day 1
Lesson   Objective              Content                                            Method        Material
and
Credit
Hours

L1       Arrival             Introduction and expectations of Unit          Large Group:         Table, Chairs,
3 CH     Getting to know the What happened? New approaches? Presentation Round Table             Agenda,
         Aims and            of each learners presents any modifications to Flipchart            Coffee and Biscuits
         Objectives          their business plan



L2       Getting familiar       Enquiry: Imagine you are not at home…              Small group   Presentation on Flip
2 CH     with Business                                                             And           Chart
                                An enterprise needs somebody responsible
         structure                                                                 Large group   Other supporting
                                      Type of organisation and management                       documents
                                       structure. Do you need a license – if so,
                                                                                                 Handout
                                       who could guide you through the
                                       process?

                                (trainer Guide)
                                See add. questions

L3       Legal types of                                                            Lecture       Presentation on Flip
2 CH     businesses                                                                              Chart
         Registrations issues                                                                    Other supporting
                                                                                                 documents




                                                                                                                        48
Lesson   Objective    Content                                      Method         Material
and
Credit
Hours

L4       END OF DAY   Final Thoughts: End of the day Impressions   Group
1 CH                                                               Presentation




                                                                                             49
Lesson Plan
Day 2
Lesson   Objective          Content                                             Method            Material
and
Credit
Hours

L5       Reflection of      Enquiry: What was important for you yesterday?      Large Group:      Table, Chairs,
1 CH     previous day                                                           Round Table       Agenda,
                                                                                Flipchart         Coffee and Biscuits
                                                                                                  Moderation cards

L6       Select a most      Draw a picture, how your business will look like?   Small group       Presentation on Flip
2 CH     suitable type of                                                       And               Chart
         organization       Organization, type, employees…                                        Other supporting
                                                                                Large group
                                                                                                  documents
                                                                                                  Handout

L7       Getting familiar   Draw a picture, how one working day and a           Large Group       Presentation on Flip
2 CH     with running a                                                         Work              Chart
                            working week will be,
         business                                                               Review: Small     Other supporting
                                                                                Groups            documents
                            Hours of business operations
                                                                                Combination of
                            Task – describe it as much concrete                 all participant
                                                                                notes




                                                                                                                         50
Lesson   Objective             Content                                       Method       Material
and
Credit
Hours

L8       Identify what         Review to the road map:
2 CH     professional advice
         is needed for the     Did I forget an aspect?
         success of the own
         business              Where do you see problems?

                               Where do you can get advices?


L9       END OF DAY            Final Thoughts: Describe your next steps      Moderation
1 CH                                                                         cards
                               The empower team should do a research where
                               they can get further information




                                                                                                     51
Lesson 1:
      At this point in the course, it is now time for the trainer to introduce the
concept of organizational structure and management. They should begin by
introducing the objectives of the unit and then proceed with discussing what was
learned in Unit 4 and if that information now changes their business plan. What
type of modifications would be made in necessary? Also, this will be assessed by
explaining further the learning outcome for this lesson.


Lesson 2:
Enquiry: Imagine you are not at home
       In this lesson, the trainer should introduce the concept ‘Imagine you are not
at home.’ This has been designed to have the women think of all the tasks that
would not be completed if they were not at home, have them use their
imaginations. At that point, they can connect their managerial skills at home to
their business. This will in turn have them start thinking about how their business
will function, rules and regulations, and management personnel or teams.
Trainer should review the Road Map section on the legal structure and registration
issues. In small groups, the learners should answer the following questions:
Issues and Considerations about the Business Structure
The number of employees and their responsibilities is a critical consideration for the
success of your business. Will you be hiring permanent or temporary employees? Is
continuity of personnel and their technical competence required in your business or
is your presence, as the single point of contact for customers, more important?
If you have one or more partners, even if they are silent partners, it is important to
ensure that each individuals’ roles and responsibilities are clearly defined - if
possible in writing (contractually).
      Will your business have one principal head or managing director?
      Who will represent your company externally?
      Is there a hierarchical structure?
      How is the organization structured?
      Do roles and responsibilities overlap?
      Are employees specialized or are they responsible for all business aspects?
      Do you expect to be fully occupied at the start of the business or do you
       expect incremental increases in phases?
      Do you possess sufficient start-up capital?
      Who will work in your business?
       Are these:
                Temporary workers
                Permanent, full or part-time staff?
                Self and Family Members
                Unpaid employees




                                                                                   52
Lesson 3:
The trainers should give an overview of the lecture by using the following
information as a guideline.
Legal Issues7
      In Kosovo, the taxation based on VAT which is actual 15% on turnover. If the
turnover is higher then 50,000 the company has to pay a business tax of 20%
regardless of legal form of the company. The legal forms in Kosovo will be
explained in the next section


Sole trader

    Advantages
          quick start possible
          few formalities
          no additional contracts
          no partners required

    Disadvantages
          partners liable to the full extent of private fortune
          all trade regulations have to be fulfilled by the entrepreneur
          no possibility to work as employee and thus no tax privileges
          no help from partners in entrepreneurial decisions
          foundation costs are to be met by the entrepreneur

Private limited company

    Advantages
          only limited liability with ordinary capital
          preconditions for trade regulations can also be met by persons other than
           the entrepreneur
          flexible fiscal design, e.g. employment of entrepreneur as employee
          suited for family partnership

    Disadvantages
          higher foundation costs
          articles of partnership attested by a notary required
          minimum capital requirement
          at least two partners required




7
          Source: http://www.unido.org/en/doc/4839,
http://sbinfocanada.about.com/cs/businessplans/a/bizplanmanage.htm, www.unmik.online.org, www.mef-
ks.org


                                                                                                53
Limited company & Co. limited partnership

    Advantages
         possibility to manage the enterprise as general partner and still to appear
          as partnership

    Disadvantages
         low credit worthiness

Registered trading partnerships

    Advantages

         no double-entry bookkeeping required as long as bookkeeping limits are
          not exceeded
         possibility to convert the enterprise later into a partnership
         the license has to be obtained only by one partner
         in a "KEG" not all partners are liable to the full extent

    Disadvantages

         only possible for small business
         no possibility to appoint a managing director
         in an open trading partnership all partners are liable to the full extent of
          their fortune
         at least two partners required



Not only is the legal form of importance but also the ownership structure.
The Ownership Structure section of the business plan should describe with which
partner the ventures want to cooperate. Partnership or a corporation, need more
explanations and the structure of the ownership (percentage of ownership in the
company) should also be explained.


A corporate stakeholder is a party who affects, or can be affected by, the
company's actions. A narrowly defined list of stakeholders might include 8:

         Employees
         Customers
         Shareholders
         Investors




8
       Source: http://en.wikipedia.org/


                                                                                         54
   Broader lists of stakeholders may also include:

          Suppliers
          Labor unions
          Government regulatory agencies
          Industry trade groups
          Professional associations
          NGOs and other advocacy groups
          Prospective employees
          Prospective customers
          Local communities
          Public at Large
          Competitors

Furthermore there are other parties who might be involved such as partners from
cooperation, who so ever it might be.
Cooperation refers to the practice of people or greater entities working in common
with commonly agreed upon goals and possibly methods, instead of working
separately in competition.
There are various variants of multi client and/or multi contractor collaborations.

      The first step for collaboration is that the partners get known to each other-
       this might be facilitated by research directories like Network for European
       medium and large transport research facilities.
      The second step is the compatibility of the aims of the organizations at least
       in the segment the project is located.
      The personal preconditions comprise the ability to communicate (also with
       regards to the technical terms) and the willingness to share ideas and
       develop them further together in a possibly previously unknown direction.

Certain forms of cooperation are illegal in some jurisdictions because they alter the
nature of access by others to economic or other resources. Thus, cooperation in the
form of cartels or price-fixing may be illegal.

Public-private partnership (PPP) is a system in which a government service or
private business venture is funded and operated through a partnership of
government and one or more private sector companies. These schemes are
sometimes referred to as PPP or P3.

A Strategic Alliance is a formal relationship formed between two or more parties
to pursue a set of agreed upon goals or to meet a critical business need while
remaining independent organizations.

Strategic Alliance may provide the strategic alliance with resources such as
products, distribution channels, manufacturing capability, project funding, capital
equipment, knowledge, expertise, or intellectual property. The alliance is a
cooperation or collaboration which aims for a synergy where each partner hopes
that the benefits from the alliance will be greater than those from individual efforts.
The alliance often involves technology transfer (access to knowledge and
expertise), economic specialization, shared expenses and shared risk.



                                                                                     55
Benefits of Strategic Alliances

Strategic alliances often bring partners the following benefits:

      Access to their partner's distribution channels and international market
       presence
      Access to their partner's products, technology, and intellectual property
      Access to partner's capital
      New markets for their products and services or new products for their
       customers
      Increased brand awareness through partner's channels
      Reduced product development time and faster-to-market products
      Reduced R&D costs and risks
      Rapidly achieve scale, critical mass and momentum (Economies of Scale -
       bigger is better)
      Establish technological standards for the industry and early products that
       meet the standards
      By-product utilization
      Management skills

Types of strategic alliances

Various terms have been used to describe forms of strategic partnering. These
include ‘international coalitions’ (Porter and Fuller, 1986), ‘strategic networks’
(Jarillo, 1988) and, most commonly, ‘strategic alliances’. Definitions are equally
varied. An alliance may be seen as the ‘joining of forces and resources, for a
specified or indefinite period, to achieve a common objective’.

Strategic alliances may be intra-industry (e.g. U.S. car manufacturers developing
electric car technology) or inter-industry (e.g. GlaxoSmithKline with Matsushita,
Canon, Fuji and Apple). They can range from handshake to merger, from licensing
to equity joint venture.

   Contractual:

          Licensing / Cross-licensing
          Supplier relations
          Collaboration
          R&D Consortia
          Industry Cluster
          Innovation Network
          Franchising
          Management Contract
          Turnkey project
          Virtual Company




                                                                                    56
   Equity:

          Joint venture
          Joint R&D
          Mergers and acquisitions
          Purchase of equity share
          Equity swap

A joint venture (often abbreviated JV) is an entity formed between two or more
parties to undertake economic activity together. The parties agree to create a new
entity by both contributing equity, and they then share in the revenues, expenses,
and control of the enterprise. The venture can be for one specific project only, or a
continuing business relationship such as the Sony Ericsson joint venture. This is in
contrast to a strategic alliance, which involves no equity stake by the learners, and
is a much less rigid arrangement.

Reasons for forming a joint venture

   Internal reasons

      1.   Build on company's strengths
      2.   Spreading costs and risks
      3.   Improving access to financial resources
      4.   Economies of scale and advantages of size
      5.   Access to new technologies and customers
      6.   Access to innovative managerial practices

   Competitive goals

      1.   Influencing structural evolution of the industry
      2.   Pre-empting competition
      3.   Defensive response to blurring industry boundaries
      4.   Creation of stronger competitive units
      5.   Speed to market
      6.   Improved agility

   Strategic goals

      1. Synergies
      2. Transfer of technology/skills
      3. Diversification

There are several other forms of cooperation possible. Those who are giving
additional resources without including too much negative aspects should be chosen.




                                                                                  57
Lesson 4:
Final Thoughts
       Once again, the objectives learned in this Unit should be brought up once
again to the learners of the course. It is recommended that the trainer use a
visualization device for this purpose.



Lesson 5:
Reflection
       Ask the class, what was the most important thing I learned yesterday? Each
participant should mention at least 1 or 2 things that impressed them yesterday. If
answers seem to be redundant, the trainer may want to present the visualization of
the Unit once again to the class.



Lesson 6:
       This lesson will have the participants draw their business, including the
organizational structure, employees, roles, product or service line, etc. The learners
should work individually for this workshop. Once the learners have completed their
drawing, each should present their art work to the class describing every part of the
picture.



Lesson 7:
      To become familiar with running a business, this lesson will be similar to the
previous exercise, but the learners will draw their business operations including
hours of operation and the task that need to be completed during the day. This has
been designed to allow the learners the means in which to visualize and possibly
change anything that doesn’t seem to fit.


Lesson 8:
       Reviewing the Road Map at this point will assist the participants to identify
what type of professional advice is needed for the success of their business. This
will be done by asking each participant to review what element/aspects of the Road
Map the following questions:
      Did I forget an element/aspect?
      Where do you see problems?
      Where can you receive advice?




                                                                                   58
Lesson 9:



Final Thoughts

      The group should be gathered into their empowerment teams, and gather
together what types of information they need and where they can find that
information.




                                                                         59
UNIT 6: Products and Services

Objective
The learners should be able to design a basic production flow and layout.



Content
Using the Road Map as a structure to learn what the new business will costs.
Discover the resources needed for delivering a product or service. Getting familiar
with different types of costs, capital requirements and learn that a cost estimate
will enable to prevent problems.



Performance criteria
Working in a team, the learners must to design production flow and layout for the
product chosen under the consideration of costs efficiency.




                                                                                60
Lesson Plan Unit 6
Day 1
Lesson   Objective             Content                                              Method        Material
and
Credit
Hours

L1       Enquiry               What was important that I learned yesterday?         Large Group   Projector and
1 CH                                                                                              Screen

L2       Production or         What is a production line? What is a service line?   Large Group   Projector and
2 CH     service:              Examples of production lines in both sectors                       Screen
         description,
         organization of
         production, flow
         and layout

L3       Resources needed      Resources of Production                              Small group   Pen and Paper
2 CH     for delivering a
         product or service;
         materials,
         machines,
         infrastructure,
         human resources

L4       Cost Calculation      Types of Costs (variable an fixed) cost structure
2 CH                           of product and service, break even point

L5       Reflections           Reflections on Unit objective                        Large Group   Fl
1 CH




                                                                                                                  61
          2.




     1.




               3.
4.




                    62
5   6.   7.




              63
                       8.
                            9.


1. Current Situation
2. Location
3. Planning
4. Materials
5. Preparation
6. Processing
7. Production
8. Finalization
9. Consumption




                                 64
Lesson 1:
Enquiry

       The start of the Unit will begin with an overview of the Unit taught until this
point in the course. The trainer should arrange some sort of presentation (power
point preferred) that will include each Unit and respective Learning Outcomes and
Content.
      The trainer should be aware of any questions that the learners may have,
and if more time is necessary for this lesson, the trainer can make time
accordingly.



Lesson 2:
What is a production line? What is a service line?

Definition: A production line is a set of sequential operations established in a
factory whereby materials are put through a refining process to produce an end-
product that is suitable for onward consumption; or components are assembled to
make a finished article.9


        The trainer should begin this lecture session with the definition of a
production line. The trainer also need to point out that despite the term
“production”, this definition can also be applied for a service line. Using the
illustration of a woman preparing a meal for her family, the 9 steps should be
discussed as a group, each woman offering their individual input.



Lesson 3 & 4:
      At this point, the trainer should use the above example of a simple
production line that includes an illustration with all components as seen below:
       Location
           o   City, center city, suburbs
       Size of location
           o   Small, medium, large; outside or inside
       Materials
           o   Including machinery; sources for those materials; what quality is
               needed; what quantity is needed; infrastructure needed to support
               materials and equipment



9
        http://en.wikipedia.org/wiki/Production_line




                                                                                   65
      Costs
          o    Labor and material costs, rent, estimated electricity costs, heating
               costs
      Manpower/Human Resources
          o    How many employees?; what type of qualifications are needed;
      Desired End-Product/Service


Once the learners are clear about the elements of a production line, have the
learners follow this structure to identify their respective location, size of location,
etc.
Using the example found by the trainer, the learners need to complete the diagram
of production line according to their business. Once the class has completed this
phase of the lesson, each participant should briefly present their diagrams.



Lesson 5:
Reflection
      The trainer should reintroduce the Unit Objectives and have the learners
discuss the fulfilment of that objective to close the unit.




                                                                                    66
Unit 7: Finance and Investment

Objectives
The learners should be able to elaborate a basic investment and finance plan.


Content
Using the Road Map as a structure to learn what the new business will costs.
Getting familiar with different types of costs, capital requirements and learn that a
cost estimate will enable to prevent problems. Additionally they will learn how to
get financial support.


Performance criteria
By working in a team, the learner must be able to elaborate and present a basic
investment and finance plan considering the own financial resources and select the
best suitable funding sources.




                                                                                  67
Lesson Plan Unit 7
Day 1
Lesson   Objective          Content                                       Method            Material
and
Credit
Hours

L1       Getting familiar   Introduction the issue                        Large Group:      Table, Chairs,
1 CH     with Capital        What will cost your new business?           Round Table       Agenda,
         requirements                                                                       Coffee and Biscuits




L2       Getting familiar   Overview: Capital Requirements                Lecture           Presentation on Flip
2 CH     with Capital                                                                       Chart
                            *0    Start-up costs
         requirements             *1     Investments                                        Handout
                                  *2     Monthly operating costs
                                  *3     Yearly operating costs
                                  *4     Monthly living expenses
                                  *5     Yearly living expenses
                                  *6     Initial inventory requirements

L3       Getting familiar   Financial requirements                        Individual work   Presentation on Flip
2 CH     with Capital                                                     and small         Chart
         requirements                                                     groups            Handout
                            Living Costs                                                    Other supporting
                                                                                            documents

L4       END OF DAY         Final Thoughts: End of the day Impressions    Group
1 CH                                                                      Presentation




                                                                                                                   68
Lesson Plan
Day 2
Lesson   Objective           Content                                          Method         Material
and
Credit
Hours

L5        Reflection of      Enquiry: What was important for you yesterday?   Large Group:   Table, Chairs,
1 CH     previous day                                                         Round Table    Agenda,
                                                                              Flipchart      Coffee and Biscuits
                                                                                             Moderation cards

L6       Turnover Planning   The key turnover numbers are:                    Small group    Presentation on Flip
2 CH                                                                          And            Chart
                              Minimum turnover
                              Target Turnover                                Large group    Other supporting
                                                                                             documents
                                                                                             Handout


L7       Loans and Credits   Where you can get money?                         Lecture        Presentation on Flip
2 CH                                                                                         Chart
                                                                                             Other supporting
                                                                                             documents


L8       END OF DAY          Final Thoughts: Describe your next steps The     Moderation
1 CH                         empower team should do a research where they     cards
                             can get further information




                                                                                                                    69
Lesson 1:
What will your new business cost?
To introduce this session, the trainer must ask the following questions:
 How much start-up capital do you require to realize your business idea?
 How realistic is your financial estimate?
 What amount of financing and new investment is financially appropriate and
   prudent for the size and scope of your business?
 How much will the renovation of your business premises cost?
 What is your rent?
 How large an inventory do you require to realize your revenue objectives?
 How high is your start-up investment?
 How much external credit (e.g. bank loans) do you require?
  etc.
To accurately plan your expenses, you need to determine:
 What are you going to purchase?
 How expensive will your inventory be?
 How high can your rent be?
  etc.
The Trainers should mention that the learners will require a written cost estimate in
order to process a bank credit. The bank’s detailed approval process is intended to
ensure and protect you from financially imprudent decisions.
The cost estimate will also enable you to prevent problems such as:
 Unexpected costs that cannot be financed.
 Incurring higher expenditures for the business than can be economically realized.
A well thought out and thorough plan means:
 Taking into consideration each and every possible expense, ranging from the
  broom in your office to the outside billboard, from costs for business consultation
  to the champagne (sparkling wine) at your grand opening.
 A thorough price comparison, negotiating with suppliers and requesting
  information from other self-employed or new business owners, will ensure that
  your business can be set up in the most cost-efficient manner.
The exact business costs incurred will depend on the following variables:
 Industry, type of business and legal form: the necessary minimum requirements,
  legal conditions for insurance, fire protection (e.g. in Cafes, public restaurants,
  Kindergartens), etc.
 Specific requirements of the business: Characteristics of the target group,
  location, product mix, image und advertising mechanisms, personnel costs,
  rental expense.
 Living expenses: Do they need to be fully financed right at business start-up or
  are there alternative sources of funding, for example unemployment payments,
  start-up seed money, inheritance, spouse’s income?
 Child care: Are private or public care facilities needed and available?
 Are there insurance plans that offer business insurance?




                                                                                   70
Lesson 2:
       This lesson will asses the learner’s various costs. Using the Road Map, the
learners will calculate the following information. It is suggested that the trainer find
a simple template or design a document that can be used by the learners with the
following information incorporated:
Within capital requirements, the following areas are critical to your cost
assessment:
   Business start-up costs
   Investment capital
   Monthly and yearly operating costs
   Monthly and yearly living expenses
   Liquid cash reserves
   Initial product inventory


1. Business start-up costs:
The calculation of the business start-up costs should include all expenditures
incurred before the launch of the business, for instance business consultation costs,
notary, legal and other registration costs, design and production of marketing
collateral (e.g. business cards, fliers, brochures), participation in trade fairs, etc.


2.Investment Capital:
The investment capital can be included in the required start-up credit and a realistic
calculation is therefore critical. The projections should be carefully reviewed and all
possible savings should be realized.


The investment capital costs include the following areas:
   Remodeling and installation
   Renovation
   Premise set-up
   Office appliances, equipment, business vehicles
   Automobiles
   Other




                                                                                     71
The trainers should explain the handout : Financial Requirements
                Financial Requirements
                in EUR

                Investment costs
                Properties
                Building
                Reorganization measures
                Machines/equipment
                Business and store fittings
                Vehicles
                Reserve for subsequent investments
                Complete                                     0,00
                Other resource requirements
                Raw, and fuels materials
                unfinished products or performances
                manufacture products and goods
                Demands/outstanding debts
                Reserve for special loads
                Complete                                     0,00
                Initial costs
                Consultations
                Registrations/approvals
                Entry into the register of companies
                Notary/laywer
                Complete                                     0,00
                debts
                interests
                Amortizations
                Complete                                     0,00
                Private withdrawls

                Complete                                     0,00
                Capital requirements                         0,00




3. Operating costs:
Examples of monthly operating costs include:
   Rent
   Utility costs
   Personnel costs
   Office materials
   Advertising
   Telephone and computer charges
    etc




                                                                    72
4. Living expenses:
Living expenses include everything you require to maintain your personal life
standard. Please note that as a self-employed individual, a significant change is
that now, you will be responsible for all your health insurance and pension
payments. Additionally, should you be incapacitated or disabled on the job, you will
need to cover your expenses yourself.
Important:
 Calculate your living expenses realistically and take into account your standard of
  living as well as expenses for your family.
 Take into account what your anticipated income tax will be.
 Remember to calculate your living expenses both on a monthly as well as yearly
  basis.




                                                                                  73
74
5. Liquid cash reserves:
This economic term refers to the business and private expenses that arise in the
early start-up phases of the business. It is assumed that your business will not
generate the minimum necessary revenue from day one of operation. The liquid
cash reserves provide the necessary buffer to cover your costs in the initial months
and should be included in your start-up capital calculations. In this manner, you can
concentrate upon building up your business, free of initial financial worries.


The Liquid cash reserves span the following periods:
For living expenses             6 Months
For business operating costs           3 Months


6. Initial Inventory:
This cost only applies to retail businesses or the hospitality sector, such as
restaurants. It includes the goods and products necessary for business start-up.
The listing of items should be within the relevant category. These costs are
accepted in the start-up capital credit amount.




                                                                                  75
Lesson 3:
      This lesson assesses the capabilities of the learners to calculate their
turnover. It is recommended that the trainer find a simple template to use for this
turnover planning section based on the following points:
Your annual living expenses and business operating costs are the required basis for
your turnover planning.
The key turnover numbers are:
 Minimum turnover
 Target Turnover

Having both the figures allows you to envision and plan for the future development
of your business. Depending on the goals of your respective business, you can
determine what changes are required to reach your target turnover.


For example:
 Do you want to hire more staff to relieve you?
 Do you plan more vacation time in the future?
 Do you want to expand your product offers in order to give customers more
  choices or to address a new target group?
 Do you require professional assistance in the presentation of your company’s
  capabilities and successes?
  etc.

The trainers should explain:
Differences between service and product offers:
 In retail trade, the turnover is calculated according to the general established
  profit margin for each particular sector.
 In the area of services, the turnover calculation utilizes different criteria to
  allocate living expenses and business operating costs, depending upon the
  branch of service. For example, fees for graphic design services would be
  allocated differently than fees for personnel agency services.

Important:
The annual turnover, which can be calculated on a daily basis, serves as an ongoing
check on the health of your business and provides the basis for periodic
adjustments necessary to ensure the success of your business.




                                                                                     76
Income Statement
in EUR

  Description                       JAN     FEB      March     APRIL     MAY     JUNE     JULY     AUG     SEPT     OCT     NOV      DEC     SUM
  Income
  turnover (net)                                                                                                                             0,00
  other income*

  Total Income                       0,00     0,00      0,00      0,00    0,00     0,00     0,00    0,00     0,00    0,00     0,00    0,00   0,00
  Expenses
                                                                                                                                             0,00
  sub contracted supplies
  material/delivery                                                                                                                          0,00
  space rental                                                                                                                               0,00
  repair work                                                                                                                                0,00
  car insurance/costs                                                                                                                        0,00
  financial leasing                                                                                                                          0,00
  costs for advertising                                                                                                                      0,00
  office supplies                                                                                                                            0,00
  telephon/internet/fax                                                                                                                      0,00
  trade/technical journal                                                                                                                    0,00
  legal/tax counselling                                                                                                                      0,00
  travelling expenses                                                                                                                        0,00
  insurance/contribution                                                                                                                     0,00
  personnel costs                                                                                                                            0,00
  postal charges                                                                                                                             0,00
  related costs of money transfer                                                                                                            0,00
  interest expenditures                                                                                                                      0,00
  Depreciation                                                                                                                               0,00
  trade tax
  other costs                                                                                                                                0,00

  Total Expenses                     0,00     0,00      0,00      0,00    0,00     0,00     0,00    0,00     0,00    0,00     0,00    0,00   0,00

  Profit before Tax                  0,00   ###         0,00      0,00    0,00     0,00     0,00    0,00     0,00    0,00   ###       0,00   0,00




                                                                                                                                                    77
UNIT 8: Presentation and Evaluation


Objective
The learners should be able to explain and defend their basic business plan. The
road map will guide them. The last unit will empower and encourage the learners to
start-up and run a business and to review the learning process. This Unit ‘close the
cycle concept’ will allow the learners to find new opportunities.


Content
As the last unit of the course, the learners will fine-tune their business plan and
create an action plan for implementing the business plan. The Road Map will set key
performance criteria for monitoring a successful operation. Additionally, they will
review the achieved learning outcomes and its relevance to further career
development.


Performance criteria
The learners will be able to design and deliver the final version of a business plan,
identify, define, and monitor the key performance indicators for successful
operation of a mini business or mini enterprise. The learners must be able to design
her own contribution to the learning process and team.




                                                                                  78
Lesson Plan Unit 8
Day 1
Lesson   Objective               Content                                       Method           Material
and
Credit
Hours

L1       Getting to know the     The teachers explain the role play.           Large Group:    Table, Chairs,
2 CH     Aims and Objectives     Draw their own Business plan by following the Individual Work Agenda,
                                 Road map                                      Flipchart       Coffee and Biscuits
                                                                                               Handout

L2       Getting familiar with   In small groups they should discuss what types Small group     Presentation on Flip
2 CH     investors interests     of issues they would discuss with a potential  And             Chart
                                 investor.                                                      Other supporting
                                                                                Large group
                                                                                                documents
                                                                                                Handout

L3       Getting aware of the    Reflect, how the SWOT Method assists to Small Groups           Presentation on Flip
2 CH     SWOT Analyzing          overcome the finance specific hurdles                          Chart
         again                                                                                  Other supporting
                                                                                                documents




                                                                                                                       79
Lesson Plan
Day 2
Lesson   Objective              Content                                          Method         Material
and
Credit
Hours

L4        Reflection of         Enquiry: What     was    important   for   you   Large Group:   Table, Chairs,
1 CH     previous day           yesterday?                                       Round Table    Agenda,
                                                                                 Flipchart      Coffee and Biscuits
                                                                                                Moderation cards

L5       Role play: Investors   Presentation of the business plan                               Handout
3 CH     and founders           Ruled by the investors                                          Checklist




L6       Investors part         The investors explain concerning to the road     Large Group    Presentation on
2 CH                                                                                            Flip Chart
                                map why they have chosen this business plan.
                                                                                                Other supporting
                                                                                                documents




                                                                                                                      80
Lesson 1:
      This unit will be a summary of all of the units. Therefore it is necessary to prove
the learning outcomes. The main purpose of this unit is to conduct a role play
between investors, creditors, and business registration officials.
Role-play: is an excellent learning and teaching tool. It offers learning with all
senses-cognitive, emotional, behavioral by showing the learning outcome.
As preparation for role play, the learners should design a business plan all the while
using the Road Map as a guideline and complete each element of the map.


Lesson 2:
       The trainers have to explain why an investor or a bank will give me some
money for running my business. The hidden purpose is to have the learners change
their perspective. Until now they were thinking about forming a business and so this
activity will make them look at their business (and others) from the eye of an
investor. Is it profitable? Is it sustainable? Etc.


Lesson 3:
     This lesson will be a review session of the SWOT analysis based upon any
changes made as a result of the role plays.


Lesson 4:
      What did we learn yesterday?


Lesson 5:
      The trainer should split the class into teams of investors and a team of
presenters and have the business plan be formally presented.


Lesson 6:
      The team of investors should explain using the Road Map as key elements of a
business plan.
Why would they invest in this idea? Or why not?
The class should vote on the best business plan and presenter for the conclusion of
this lesson. It is recommended to give the winner a prize.
THE WINNER IS…


Lesson 7:
Final thoughts
      At the end of the unit, the learners will explain what they will do after the
course, how and where.


                                                                                      81
Handouts (Teaching- Materials)


Annex 1. Getting To Know You

                       Assessing Client Readiness and Entrepreneurship Skills among


                                                            Disadvantaged Populations
                                                                          Handout #1

                       GETTING TO KNOW YOU
Directions: The purpose of this questionnaire is to help us better understand your
current situation as well as your past experiences. The answers you provide are strictly
confidential and will only be used to help you put in place all the supports needed to
build your dream/plan/business idea. If you don’t wish to answer a specific question,
just leave it blank.

                           PERSONAL INFORMATION

1. Today’s Date

2. Name

3. Birth Date

4. Home Address

5. City ___________________ Province                      Postal Code


6. Phone numbers where you can be reached:                                    Home:
                                                                 Work:
                                              Mobile:
7. Email address:

8. Can you provide the name, address and phone number of someone who will
   know where you are if you move?

   Name
   Relationship
   Address
   City ____________________ Province _____________Postal Code


   Phone numbers:      Home:
                       Work:
                       Mobile:


                                                                                      82
9.   Marital Status:

      ____ Married __ Divorced _ Separated ___ Widowed               Never Married

10. Are you currently living with a spouse or partner?
     Yes If Yes, how long have you been living with your spouse or partner?
     No


11. Are you a single parent or guardian supporting child/children?
     Yes           No




                                                                                     83
                 Assessing Client Readiness and Entrepreneurship Skills among
                                                   Disadvantaged Populations
                                                                  Handout #1

                         BEING A BUSINESS OWNER

In this section, we would like to know what you think about being a business owner.


12. Have you given any serious thought to the idea of being a business owner? Not at
        all
         Some
         A lot


13. Have you talked about owning a business with significant people in your life?
         Yes
         No


  13a.         If Yes, who have you talked to? (Please check all that apply.)
               your spouse or partner
               your parents or step-parents
               your brothers or sisters
               your grandparents
               other adult relatives
               friends
               business owners
               other (please specify)


  13b. Overall, would you say that the people you talked to….
                   have encouraged you to start your own business;
                   OR
                   have discouraged you to start your own business.


14. Have you:
   read any books on starting a business? read any magazines on starting a
   business? explored the Internet on starting a business? taken any business
   training classes?


15. Which of these statements best describes you: (Please check all that apply)


         I am currently seeking more training or education



                                                                                      84
        I am currently seeking employment
        I am currently employed (number of hours per week
        _______________________________________) I am
        planning to start my business in the next 3 to 6 months
        I plan to start my business at a future date
        I do not plan to start a business
        I am still trying to decide whether to start my own business



                                 SKILLS

In this section, we would like to find out about skills you may have gained through
work, volunteer activities, or running your home.

16. Have you had any:
    work experience managing or supervising other people? None          Some      A lot
    work experience being responsible for a geographical
   area for a business?                                       None      Some      A lot
    work responsibilities that required daily opening or
    closing
   for a business?                                            None      Some      A lot
    jobs where you worked alone?                              None      Some      A lot
    jobs interacting with customers?                          None      Some      A lot



17. What is the longest you have ever worked at one job? (Please indicate
    whether years or months, but not both). Number of years      OR Number
    of months

18. Do you consider any of these to be your strengths?

  Keeping your home in order / housekeeping      Not at all    Somewhat         A lot
  Budgeting                                      Not at all    Somewhat         A lot
  Keeping personal or household expenses         Not at all    Somewhat         A lot
  Time management                                Not at all    Somewhat         A lot
  Problem Solving                                Not at all    Somewhat         A lot
  Being able to prioritize                       Not at all    Somewhat         A lot
  Being organized                                Not at all    Somewhat         A lot
  Thinking creatively                            Not at all    Somewhat         A lot
  Working hard                                   Not at all    Somewhat         A lot
  Sticking with something                        Not at all    Somewhat         A lot
  Keeping commitments                            Not at all    Somewhat         A lot


                                                                                        85
                     FAMILY SITUATION

The next set of questions are about you and your
family.
19. If you needed help, is there someone:
  you can count on to watch your children forYes       No     N/A   (No
  you can cont on to run errands for you?        Yes        __
  you can count on to lend you a car or give youYes    No
  you can count on to use their phone?           Yes   No
  you can count on to lend you money if you
        needed it in a time of financial crisis? Yes   No
  you can count on to give you encouragement
        Reassurance?                             Yes   No
  Is there anyone who counts on you to give
        of these kinds of help?                  Yes   No




                                                                          86
                Assessing Client Readiness and Entrepreneurship Skills among
                                                  Disadvantaged Populations
                                                                 Handout #1
20.To what extent is each of the following areas a problem for you or your
   family? Please use the following scale when answering these questions: 1 =
   Not a problem at all; 2 = a Slight Problem; 3 = A Moderate Problem; and 4 =
   A Serious Problem. Circle only one number for each item.

                                                Not a    A Slight     A       A
                                               Problem Problem Moderate Serious
                                                at All              Problem Problem


Having a place to live
Having working utilities (lights, heat,
water, etc.)
Keeping a working telephone
Paying your bills each month
Having access to reliable transportation
Finding child care
Being the primary caregiver for an adult
family member
Depression     or    other   mental   health
concerns
Having an abusive or controlling person
in your life
Legal issues
Your own use of drugs or alcohol
Use of drugs or alcohol by other family
members
Your own health concerns
Health concerns of other family members




                                                                                  87
21. Are there any factors that will make it difficult for you to attend meetings or
    training at our office?            Yes             No

    If Yes, what are they?
        Lack of transportation
        Distance to meeting location
        Childcare problems
        Conflict with business or job schedule
        Family issues
        Other (Please specify)




                  BUSINESS OWNERSHIP EXPERIENCES

22. While you were growing up, did your family own or operate their own
    business (including farming)?    Yes   No

    If Yes,


    22a. ___________________________________did you work in this family-owned
    business? __________________________ Yes ____ No

    22b.      did your family owning a business…. (Please mark only one)
              make you eager to own your own business?
              turn you off to the idea of owning your own business?
     22c.     was your family’s business at all related to your current
              business idea? Yes_ No  N/A (I don’t have a current
              business idea)




                                                                                      88
                Assessing Client Readiness and Entrepreneurship Skills among
                                                  Disadvantaged Populations
                                                                 Handout #1


23. Have you ever owned a business in the past? ____ Yes         No If Yes,



     23a.           How long did you own your business? (Please indicate whether
               years or months, but not both).

               Number of years     OR                  Number of months

     23b.      Was your business….(Please mark
               only one) your main source of
               income? a source of extra income?


     23c.      Did you….. (Please mark only one) plan the end of your business?
               not plan the end of your business?


     23d.      What was the primary reason you closed your business? (Please mark
               only one)
               Personal reason
               financial reason
               other reason (please specify)




                                         -END-

Thank you for the time you took in completing the questionnaire. Again, all the answers you
provided are confidential and will only be used to help us help you.




                                                                                        89
Annex 2. Competence Profile




Competence Profile – Biography Based
Page 1


                                Technical Skills


Describe what skills, when and where you use these skills?




                                                             90
Competence Profile: Biography Based
Page 2


                               Personal Skills

Describe what skills, and when and where do you use them?




                                                            91
Competence Profile: Biography Based
Page 3


                          Additional Skills/Hobbies

Describe what skills and where and when you use them?




                                                        92
Personal Characteristics – Key skills

weighing up             active                     analytical               grabbing
adaptable               open-minded                with staying power       balanced
compensating            able to get enthusiastic   insistent                master
cautious                resilient                  calculable               calming
delegation capable      discipline yourself        putting through-ready    dynamic
ambitious               honest                     understanding            ready for use
forceful                engage                     decisive                 determined
experienced             encouraging                fair                     hard-working
flexible                kind                       patient                  just
ready to talk           forming                    provocative              helpful
polite                  humorous                   imaginative              initiative
innovative              integrating                be interested            cooperative
competent               willing to compromise      consistent               constructive
sociable                concentrate                cooperative              creative
critical                teachable                  achievement-orientated   loyal
assessed artistically   rational                   objective                optimistic
conscientious           responsive                 realistic                directional
risk-ready              considerate                quiet                    relevant
quick-witted            independent                self-confident           self-controlled
self-critical           sensitive                  adjusted socially        spontaneous
stable                  energetic                  tactful                  team-oriented
vivacious               tolerant                   superior                 convincing
independent             incorruptible              supporting               responsibility
discreet                communication              ready                    understanding
conscious               unprejudiced               truth-loving             recognizing
essential
trusting                aim-oriented               determined               grasping it
strong-willed           reliable                   restrained               confident




                                                                                              93
CHECK LIST: Personal Prerequisites                                                    YES No

Personal suitability
1. I cope well with possible financial uncertainties.

2. Even if I have a little less leisure time and my income is safe, I would like to
fulfill my dream for me.

3. I can present myself well.

4. I believe in my success.

5. I am an optimistic person.

6. I take the initiative with pleasure and like to try something new.

7. I have a positive era.

8. I have the ability to organize things efficiently.

9. I can motivate myself, but I can become overwhelmed when looking at
something for the first time.

10. I have strong perseverance that allows me to overcome difficult situations.
No one represents problem and I can cope with setbacks.

11. I am reliable and like to take on responsibility.

12. I have no trouble approaching people.

13. I can communicate well.

14. If I have set a goal, I know that I have sufficient persistence to achieve my
goal.

15. I can gain acceptance well.

16. People tell me I am confident about myself.

17. I can negotiate well if it allows me to reach my goal.

18. I am a courageous person and can take risk too.

19. I can handle conflicts well.

20. I do not mind being criticized.

21. I can convince employee/negotiating party of my competence easily and
gain acceptance.


22. I am ready to face stressful situations and to tackle them with the


                                                                                       94
necessary solution.

23. I set me my targets myself and do not need a pressure "from above" to
pursue her full of determination.

24. I can make people be enthusiastic about my ideas and be persuasive.



Technical knowledge
1. My experiences meet the requirements of the line of business I want to set
up on my own, in which my qualifications are used.

2. I don’t have any business knowledge.

3. I am able to prepare letters and calculations at the PC independently. I
already have a little experience in the marketing area.

4. I have accounting knowledge.

5. I would like to learn more about owning my own business.

6. I am ready to qualify technically or to acquire missing knowledge.

7. I have a negotiation-proof knowledge of Albanian.

If no:
 8. I am ready to acquire a missing knowledge of Albanian for me, or
    improve my language skills.
Family aspects (consistency)
1. I have discussed my plans for the future with my husband/companion.

2. My man/companion through life or my family is ready to give me the
necessary support.

3. My man/companion or family is might prevent me from going on excursions
sometimes.

4. I can expect different temporal restrictions of my man/companion right
away.

5. I plan on distributing my household tasks to with my husband/companion or
my family in the household.

6. My husband/companion would support me financially.

7. I have children who must be looked after.

If yes:
8. I am or would like to be informed about public support possibilities in my
town.


                                                                                95
9. If necessary, my mother, mother-in-law, friends would support me.

10. My husband/companion if necessary ready to make the promised excursion
by himself with the children, too.

11. I have already thought about how my children are looked after well and
safe during my working time.
Financial aspects
1. I do not mind to have no regular and stable income for a certain time.

2. I have made thoughts of how I can finance my idea (credit, family,
acquaintances, promoting possibilities).

3. I have financial reserves so that have give me a certain independence of
banks or other capital givers.

4. With me funds are available sufficiently to be able to live some time of this.

5. My husband/companion through life can provide the cost of living by his
income or I other sources of income.

6. I have debts.

7. I already am in a bankruptcy situation.

Physical aspects (efficiency)
1. I am physically fit to handle stress and high deployment of labor well.

2. I know the boundaries of my personal physical and emotional capacity.

3. I have physical restrictions.

4. I am emotionally strongly and resilient.

5. I have a heavy hindrance.

If yes:
6. My hindrance is compatible with my plans.

7. From the point of view of time my hindrance reduces me strongly, e.g. in the
form of frequent doctor visits or the like.

8. I handle confidently my restrictions.

9. My target activity does not have an effect on my physical condition
adversely.

10. I am informed about special programs for seriously handicapped persons or
I know where I can inform others.



                                                                                    96
Annex 3. Road Map
The Business Start-up Road Map assists in developing the business concept and
ensuring its viability.
About the Founder
      Personal motivation and family situation
      Professional qualifications and education


Presentation of the Business
      Type of business
      Legal structure
      Registration issues
      Number of owners
      Business offer
      Target group
      Location
      Size and inventory requirements
      Organization structure
      Number of employees, roles and responsibilities
      Hours of business operation
      Marketing, Advertising and Public Relations


Market Analysis
      Needs analysis
      Location
          Community/Neighbourhood
          Local administrative structure
          Infrastructure
      Competition
          Competitive situation
          Your unique strengths




                                                                           97
Capital Requirements
       Start-up costs
       Investments
       Liquid cash reserves
       Monthly operating costs
       Yearly operating costs
       Monthly living expenses
       Yearly living expenses
       Initial inventory requirements


Turnover/Revenue planning
       Minimum revenue
       Target revenue
       Price calculation


Personal Considerations:
Does my business vision match my personal situation and conditions?
* Household responsibilities and earning an income
* Financial independence
* Care of children
What qualities should an entrepreneur/self-employed individual possess?
* Technical qualifications / business knowledge (Legal considerations, Registration
issues, Taxation)
* Sales competence and experience
* Supervisory skills (Delegation, managing employees, book keeping)
* Personal characteristics such as: self motivation, stamina, optimism, self
confidence, courage, healthy constitution, high tolerance for uncertainty and
frustration, decision-making and risk-taking ability, social skills and ability to build
trust and inspire other people.
* Experience and network of contacts in the chosen sector /branch




                                                                                     98
Evaluating your business idea: Does it arise from:
* Your professional training
* Your desire to fulfill a dream
* A general market trend
* An observed/assumed market gap?


Important Questions:
      Do you fulfill the technical and physical requirements that the business will
       demand?
      Do you possess sufficient information about this sector and business in order
       to asses its requirements?
      What actions or training do you require to fill any gaps?
      Who could support you?
      Do you need a license – if so, who could guide you through the process?

Issues and Considerations about the Business Structure
The number of employees and their responsibilities is a critical consideration for the
success of your business. Will you be hiring permanent or temporary employees? Is
continuity of personnel and their technical competence required in your business or
is your presence, as the single point of contact for customers, more important?
If you have one or more partners, even if they are silent partners, it is important to
ensure that each individuals’ roles and responsibilities are clearly defined - if
possible in writing (contractually).
      Will your business have one principal head or managing director?
      Who will represent your company externally?
      Is there a hierarchical structure?
      How is the organization structured?
      Do roles and responsibilities overlap?
      Are employees specialized or are they responsible for all business aspects?
      Do you expect to be fully occupied at the start of the business or do you
       expect incremental increases in phases?
      Do you possess sufficient start-up capital?
      Who will work in your business?
       Are these:
         + Temporary workers
         + Permanent, full or part-time staff?




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The Business Offer
Is your product/service mix segmented in categories and do you plan to offer
additional services?


The following considerations can help:
What do you want to offer?
What product categories did you plan?
How do you plan to package your offers?


The Target group
Who is your target group? For example, if you are a non-profit organization, will you
target everyone or only a specific subsection of people? Men or women? Needy,
elderly people or families? People with a certain level of education or specific
interests? Business or private individuals? People with a certain high amount of
income or low-income individuals?




Regardless of which type of target group, the following business decisions
are important:
   the   product mix you plan to offer
   the   prices
   the   manner of packaging and presenting your products
   the   design of your advertising materials
   the   production of your goods
   the   quality of raw materials
   the   advertising and marketing strategy
   the   business structure
   the   size and set-up of your place of business
   the   business location
   the   additional offers




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The Location
The right location is one of the most important factors for your business success.
In order to access how you can best access your target group, you need to consider:
 Is your business selling directly to the end consumer (a retail shop, a Cafe, etc.),
  or
 Indirectly to a wholesaler or distributor?

In general, you should undertake the following steps:
1. Observe and understand the industry (sale cycles, key characteristics, etc), in
   which you want to enter with your new business.
2. Assess the customer needs and competitive situation.
3. Conduct a concrete location analysis.



Size and set-up of the business premises
Ask yourself:
   How many square meters do I need?
   Is an outdoor window display necessary for my business?
   How should the walls and flooring look?
   Does my business have any special requirements in regards to electricity, fire or
    other installations?

Marketing und Advertising
The following questions can help in achieving clarity while planning:
 How will you distribute your goods or services to your customers?
 How will you notify customers about the start of your business?
 What are the most appropriate marketing tools? A grand opening, an inauguration
  reception, a large media campaign, a direct mailing campaign to potential
  customers or a general distribution of fliers and brochures?
 Does your business have outdoor signage or advertising? Note that permission
  from the local administration authorities and you landlord may be required.

Important!:
 Rule of thumb: The pricier the location, the higher your advertising and marketing
  costs.
 The power of networks: Your network of friends, colleagues, professional
  organizations, business clubs and even family, are a source of recommendation
  and acquisition of new customers.




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MARKET ANALYSIS


Following the review of your personal competencies, definition of the business offer
and target group, the market analysis is the next most critical component to
improve your market chances. The results of your analysis will show the extent to
which your business risks are reasonable and whether or not your business idea is
financially viable and can support you economically.
The following areas belong in the market analysis:
1. Needs analysis
2. Location analysis
3. Competitive situation analysis



1. Needs analysis
An observation of the general industry in which you want to enter with your new
business is the critical first step. A closer understanding can be achieved through a
daily review of newspapers, technical journals, economic news reports and trade and
exhibition information.
Your understanding can be further refined through a concrete review of purchasing
behaviour of your target group or even a questionnaire, surveying their buying
preferences and conditions. Should your target group be business customers, then
your first customer contact with them should be accompanied with a brief but
succinct presentation of your business offer and naturally, the benefits of your offer
to the customer.
Some possible questions for the needs analysis:
 Which of your planned products/services are already being purchased in the
  marketplace (which different product categories)?
 How often are they purchased or required?
 How much money is paid or invested for the product/service?
 How important is the quality of the offer?
 What is missing in the current market offer?
 What are customers demanding from the existing competitors?
 Are additional services being offered to the customer?

A review of the analysis results provides an indication of the viability of the business
idea and ensures that the planned offer is plausible, in the given market and
customer situation.




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2. Location analysis
The following factors need to be addressed:
 Neighborhood profile(for private customers)
   Age
   Income structure
   Level of education
   Interest groups
 Business profile
   Branch
   Size of business
   Area of business
 Area
   Industrial or trade area
   A combined residential-industrial area
   Access (Metro, Cars, Buses)



3. Competitive situation
The presence of other competitors in your planned business sector can in fact be
very positive: It leads to your potential customers being exposed to many more
sales and marketing messages in your product category. However, it is critical that
your particular offer is differentiated or adds something extra to those that are
currently available on the market. Your market analysis could also indicate that the
preferred location is already saturated. In that case, it is vital that you select
another location for your business.
If your business offer is addressing a market gap and is a new, innovative product,
then the market analysis can indicate that there are no other competitors existing at
the moment. In that case, your market entry will require significant amount of
advertising and public relations in order to create awareness, generate interest,
stimulate desire and lead to purchasing action (AIDA). Press and media relations can
be very effective for such new and innovative product introductions.
To assess your specific and particular competitive situation, you need to review the
business of the competing companies in your chosen, as well as adjoining, areas.




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Conduct a silent inquiry (as mystery shopper), to address the following
questions:
 What differentiates your planned offer from those that are now available through
  the existing competitors?
 What is the size of their business?
 What specific components or service gaps are clearly evident?
 What kind of customer service or assistance do they provide?
 Is the personnel comprised of unskilled temporary workers or trained employees?
 How are the products presented?
 How is the business advertised?
 What location advantages, if any, do the other businesses possess?

Where you can receive tips und information:
Capital requirements
   What will your new business cost?
   How much start-up capital do you require to realize your business idea?
   How realistic is your financial estimate?
   What amount of financing and new investment is financially appropriate and
    prudent for the size and scope of your business?

You need to know:
 How much will the renovation of your business premises cost?
 What is your rent?
 How large an inventory do you require to realize your revenue objectives?
 How high is your start-up investment?
 How much external credit (e.g. bank loans) do you require?
  etc.

To accurately plan your expenses, you need to determine:
 What are you going to purchase?
 How expensive will your inventory be?
 How high can your rent be?
  etc.

You will require a written cost estimate in order to process a bank credit. The bank’s
detailed approval process is intended to ensure and protect you from financially
imprudent decisions.




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The cost estimate will also enable you to prevent problems such as:
 Unexpected costs that cannot be financed.
 Incurring higher expenditures for the business than can be economically realized.

A well thought out and thorough plan means:
 Taking into consideration each and every possible expense, ranging from the
  broom in your office to the outside billboard, from costs for business consultation
  to the champagne (sparkling wine) at your grand opening.
 A thorough price comparison, negotiating with suppliers and requesting
  information from other self-employed or new business owners, will ensure that
  your business can be set up in the most cost-efficient manner.

The exact business costs incurred will depend on the following variables:
 Industry, type of business and legal form: the necessary minimum requirements,
  legal conditions for insurance, fire protection (e.g. in Cafes, public restaurants,
  Kindergartens), etc.
 Specific requirements of the business: Characteristics of the target group,
  location, product mix, image und advertising mechanisms, personnel costs, rental
  expense.
 Living expenses: Do they need to be fully financed right at business start-up or
  are there alternative sources of funding, for example unemployment payments,
  start-up seed money, inheritance, spouse’s income?
 Child care: Are private or public care facilities needed and available?
 Are there insurance plans that offer business insurance?




Within capital requirements, the following areas are critical to your cost assessment:
   Business start-up costs
   Investment capital
   Monthly and yearly operating costs
   Monthly and yearly living expenses
   Liquid cash reserves
   Initial product inventory




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1. Business start-up costs:
The calculation of the business start-up costs should include all expenditures
incurred before the launch of the business, for instance business consultation costs,
notary, legal and other registration costs, design and production of marketing
collateral (e.g. business cards, fliers, brochures), participation in trade fairs, etc.


2.Investment Capital:
The investment capital can be included in the required start-up credit and a realistic
calculation is therefore critical. The projections should be carefully reviewed and all
possible savings should be realized.


The investment capital costs include the following areas:
   Remodelling and installation
   Renovation
   Premise set-up
   Office appliances, equipment, business vehicles
   Automobiles
   Other

3. Operating costs:
Examples of monthly operating costs include:
   Rent
   Utility costs
   Personnel costs
   Office materials
   Advertising
   Telephone and computer charges
    etc

4. Living expenses:
Living expenses include everything you require to maintain your personal life
standard. Please note that as a self-employed individual, a significant change is that
now, you will be responsible for all your health insurance and pension payments.
Additionally, should you be incapacitated or disabled on the job, you will need to
cover your expenses yourself.


Important:
 Calculate your living expenses realistically and take into account your standard of
  living as well as expenses for your family.
 Compare the available health insurance costs and inform yourself about the long-
  term increases in insurance payments.
 Take into account what your anticipated income tax will be.
 Remember to calculate your living expenses both on a monthly as well as yearly
  basis.



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5. Liquid cash reserves:
This economic term refers to the business and private expenses that arise in the
early start-up phases of the business. It is assumed that your business will not
generate the minimum necessary revenue from day one of operation. The liquid
cash reserves provide the necessary buffer to cover your costs in the initial months
and should be included in your start-up capital calculations. In this manner, you can
concentrate upon building up your business, free of initial financial worries.


The Liquid cash reserves span the following periods:
For living expenses             6 Months
For business operating costs          3 Months


6. Initial Inventory:
This cost only applies to retail businesses or the hospitality sector, such as
restaurants. It includes the goods and products necessary for business start-up. The
listing of items should be within the relevant category. These costs are accepted in
the start-up capital credit amount.




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TURNOVER PLANNING


Your annual living expenses and business operating costs are the required basis for
your turnover planning.


The key turnover numbers are:
 Minimum turnover
 Target Turnover

Having both the figures allows you to envision and plan for the future development
of your business. Depending on the goals of your respective business, you can
determine what changes are required to reach your target turnover.


For example:

Do you want to hire more staff to relieve you?
 Do you plan more vacation time in the future?
 Do you want to expand your product offers in order to give customers more
  choices or to address a new target group?
 Do you require professional assistance in the presentation of your company’s
  capabilities and successes?
  etc.


Differences between service and product offers:
 In retail trade, the turnover is calculated according to the general established
   profit margin for each particular sector. In the area of services, the turnover
   calculation utilizes different criteria to allocate living expenses and business
   operating costs, depending upon the branch of service. For example, fees for
   graphic design services would be allocated differently than fees for personnel
   agency services.

Important:
The annual turnover, which can be calculated on a daily basis, serves as an ongoing
check on the health of your business and provides the basis for periodic adjustments
necessary to ensure the success of your business.

AND NOW, TO YOUR QUESTIONS!




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