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Entrepreneurship

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					           Course Book
       Entrepreneurship
 Theory Process Practice
              6th Edition
                       By
      Donald F. Kuratko
    Richard M. Hodgetts
South-WesternThomson
   Creates a new business
   Faces risk and uncertainty
   Purpose is to achieve profits
   Growth by identifying significant
    opportunities
   Assembling the necessary resources
   Capitalize
   Desire for Responsibility
   Preference for Moderate Risk
   Confidence in ability to succeed
   Desire for immediate feedback
   High level of energy
   Future orientation
   Skill at organizing
   Value of achievement over money
   High degree of commitment
   Tolerance for ambiguity
   Flexibility
1.    Do your homework
2.    Find out what your zoning restrictions are
3.    Choose the most efficient location for your office
4.    Focus on your home-based business idea
5.    Discuss your business ideas with your family
6.    Select an appropriate business name
7.    Buy the right equipment
8.    Dress appropriately
9.    Learn to deal with distractions
10.   Realize your own phone can be your best friend/enemy
11.   Be firm with friends and neighbors
12.   Take advantage of tax breaks
13.   Make sure you have adequate insurance coverage
14.   When to hire outside employees
15.   Get a post box
16.   Use network facilities
17.   Be proud of your home-based business
18.   Be prepared to welcome your clients at home
1.    Failing to spend enough time researching the business idea to see if it's
      viable
2.    Miscalculating market size, timing, ease of entry and potential market
      share.
3.    Underestimating financial requirements and timing.
4.    Over-projecting sales volume and timing.
5.    Making cost projections that are too low.
6.    Hiring too many people and spending too much on offices and facilities
7.    Lacking a contingency plan for a shortfall in expectations
8.    Bringing in unnecessary partners
9.    Hiring for convenience rather than skill requirements
10.   Neglecting to manage the entire company as a whole
11.   Accepting that it's "not possible" too easily rather than finding a way
12.   Focusing too much on sales volume and company size rather than
      profit
13.   Seeking confirmation of your actions rather than seeking the truth.
14.   Lacking simplicity in your vision
15.   Lacking clarity of your long-term aim and business purpose
16.   Lacking focus and identity
17.   Lacking an exit strategy
   Inventor: A unique idea for a product or
    service that was never there before.
    Companies are willing to buy the idea and
    make it their own for production.
   Entrepreneur: Anyone who identifies an
    opportunity and exploits it in the form of a
    business.
   Innovators are those who dwell in improvising
    of something new in a product / service that
    is already in use.
A business concept is only an idea until a feasibility
    (study) or business plan has been written to prove
    it has the potential to be a valuable business.”
The conceptual model of a new venture should
    explain:
   What value is to be exchanged?
   To whom?
   For what?
   By what means?
   Where?
   Made by whom?
   Marketed by whom?
   Financed by whom?
1.    It won’t work
2.    There is no real need
3.    There are hidden traps
4.    Unfortunate economics (costs are too high)
5.    There is no protection
6.    Obsolescence
7.    Installation
8.    Education
9.    Changing consumer behavior
10.   Assumptions
11.   Inconvenient
12.   Service requirements
1.   Involves significant savings
2.   Solves serious problem
3.   Offers convenience
4.   Fits existing scheme of things
5.   Attracts media attention
6.   Clearly identifies market
7.   Captures a monopoly (BCG)
8.   Joins a rapidly expanding market
9.   Promises a big upside; low downside
1.   No investment – “Adept entrepreneurs are cautious
     about starting a venture that requires large investments
     of their own money.”
2.   Recognized, established market – “Astute (clever)
     entrepreneurs look for some market confirmation for
     what they propose to do.”
3.   Perceived need for product – “Adept entrepreneurs
     recognize that a product or service that requires
     educating the market has a higher cost than a
     product/service with an established perceived need.”
4.   Dependable source of input supply – “Adept
     entrepreneurs make sure they have adequate supplies so
     they can provide what they sell.”
5.   No governmental regulation – “If a business involves
     governmental regulations, the entrepreneur must
     understand how they will affect the business in both
     time and money.”
6.   No labor – “If a business requires many employees, the
     entrepreneur must be willing to accept the responsibility
     and challenge of managing people.”
7.    100% Gross Margin – “A good business usually has a
      high gross margin. However, if the venture has a
      low gross margin, methods can be developed to
      raise it. Every percentage point of increase in the
      gross margin will affect the profit of the business.”
8.    Buyers purchase frequently – “A concept that has
      repeat customers after the initial sale is easier and
      cheaper to market.”
9.    Favorable tax treatment – “If the business has some
      tax advantages, it is easier to attract investors.”
10.   Receptive, established distribution system –
      “Whenever possible, adept entrepreneurs look for a
      concept with an existing distribution system.”
11.   Great news value – “Adept entrepreneurs find the
      newsworthy feature of a concept, such as fads,
      trends, and the like and then write a press release
      or feature story to distribute to local news outlets.”
12.   Customers pay in advance – “The business with
      payments in advance is one of the easiest concepts
      to launch.”
13.   No product- or service-liability risk – “Liability
      insurance is a rising expense for businesses today.”
14.   No product obsolescence – “If the concept has a
      short life cycle, adept entrepreneurs continue to
      add innovations or add more spin-offs to replace
      the obsolete products or services.”
15.   No competition – “Competition is a double-edged
      sword. Too much or too little can be dangerous.”
16.   No fashion obsolescence – “Fashion products and
      services usually have a short life cycle.”
17.   No physical perish ability – “If the product is
      perishable or has a short shelf life, adept
      entrepreneurs will find a method to sell the product
      quickly.”
18.   Impervious to weather – “Adept entrepreneurs think
      of alternative uses for the product/services if
      weather is a concern. Products affected by weather
      will greatly affect income projections.”
19.   Workable and feasible product/service – “Many
      inventions look good in the prototype phase but
      can never be mass produced.”
20.   Proprietary rights – “New concepts that have
      proprietary rights have a much better chance of
      succeeding in the marketplace.”
21.   Continuous revenue flow – “Adept entrepreneurs
      develop concepts that allow customers to return
      and make repeated purchases, such as buying
      additional supplies for the product/service,
      renewing an annual contract, or regular
      maintenance and service.”
22.   No legal entanglements – “Lawyers are expensive
      and time consuming…avoid concepts that require
      extensive legal services which result in higher
      operating costs and consequently higher prices.”
23.   Exit potential – “Entrepreneurs will exit someday –
      even if other family members become the new
      owners. Planning an exit strategy should take place
      simultaneously with planning to launch a new
      venture.”
   Term presented by: David Birch
   It is a business establishment with at least
    20% sales growth every year, starting with a
    base of at least $100,000
   What benefits do these Gazelles bring to
    national economy?
   Case Study

				
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posted:1/17/2013
language:English
pages:14