Identify the practical problems for business start ups by alicejenny

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									    Aims For Today

   Identify the practical problems for
    business start-ups
     Quick Quiz Review!

1.    List 3 benefits of introducing new
      technology
2.    List 3 difficulties of introducing new
      technology
Identifying an opportunity…

1.   Identify a business suited to YOUR
     personal skills
2.   Analyse market gaps in your local area
3.   Innovative thinking about a market
     you know a lot about
4.   Acquiring a franchise with proven
     success
    The Stats…

    Estimated that 1 in 3 business start-
     ups fail in first three years of
     operation
    Figure falls to 1 in 6 amongst firms
     which seek advice and carefully plan

                Lack of initial
               market research!!
Innocent Beginnings…
Barriers to small business success

1.   Regulation (complex and time
     consuming)
2.   Cash flow and obtaining finance
3.   Sales and marketing (limited budgets)
4.   Taxation (admin)
    Importance of Market Research

    What are competitors doing??
    Market mapping
    Target customers
The importance of marketing!!
Problems: SOF and Cashflow
Problems: Location
Protecting your idea!!

   The Copyright, Designs and Patents Act
    1988
   A patent gives the holder the right to be
    a sole user of a production process, or
    the only manufacturer of a product.
   It is up to the individual to enforce the
    patent if they think it is being infringed
   An EXPENSIVE process….
Entrepreneurial Flair!!
Purposes of Business Plans

 To clarify the idea
 To gain finance

 To monitor progress over time
What’s in a business plan?

 Introduction
 Personal Info – CV’s

 Objectives – quantifiable

 Marketing Plan – USP etc

…
Marketing Q’s to answer…

   Market size and potential?
   Who are customers, what are their
    needs?
   Who are competitors, what are their
    prices, strengths and weaknesses?
   Expected turnover in first year?
   Has product / service been market
    tested?
   What marketing and sales methods?
What’s else is in a business plan?

 …Production Plan
 Financial info – Projected

  balance sheet, P&L, Cashflow
  forecast, Breakeven analysis
 Collateral - security
    Homework

    Read ‘Practical Problems of
     start-up’ and answer the
     questions on the sheet

								
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