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Entrepreneurship

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Entrepreneurship ­ MGT602
VU
Lesson 24
CREATING AND STARTING THE VENTURE (Continued....)
LEARNING OBJECTIVES
1. To present helpful questions for the entrepreneur at each stage of the planning process
2. To understand how to monitor the business plan
3. To understand the differences between business planning, strategy plans, and market planning
4. To describe the role of marketing research in determining market strategy for the marketing plan
USING AND IMPLEMENTING THE BUSINESS PLAN
The business plan is designed to guide the entrepreneur through the first year of operations. It should
contain control points to ascertain progress. Planning should be a part of any business operation. Without
good planning the employees will not understand the company's goals and how they are expected to
perform their jobs. Bankers say that most businesses fail because of the entrepreneur's inability to plan
effectively.
The entrepreneur can enhance efficient implementation of the plan by developing a schedule to measure
programs and to institute contingency plans.
Measuring Plan Progress
Plan projections will typically be made on a 12-month schedule, but the entrepreneur should check key
areas more frequently.
1. Inventory control
By controlling inventory, the firm can ensure maximum service to the customer.
2. Production control
Compare the cost figures against day-to-day operating costs.
3. Quality control
Quality control depends on the type of production system used.
4. Sales control
Information on units, dollars, and specific products sold should be collected.
5. Disbursements
The new venture should control the amount of money paid out
Updating the Plan
Environmental factors and internal factors can change the direction of the plan. It is important to be
sensitive to changes in the company, industry, and market.
WHY SOME BUSINESS PLANS FAIL
A poorly prepared business plan can be blamed on:
Goals set by the entrepreneurs that are unreasonable.
Goals those are not measurable.
To be successful
Goals should be specific.
They should also be measurable and should be monitored over time.
The entrepreneur who has not made a total commitment to the business will not be able to meet the
venture's demands of the venture. Investors will not be positive about a venture that does not have full-
time commitment. Investors will typically expect the entrepreneur to make significant financial
commitment to the business. Lack of experience will result in failure unless the entrepreneur can gain
knowledge or team up with someone. The entrepreneur should also document customer needs before
preparing the plan
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Entrepreneurship ­ MGT602
VU
MARKETING PLAN
Purpose and Timing of the Marketing Plan
The marketing plan establishes how the entrepreneur will effectively compete and operate in the
marketplace. Marketing planning should be an annual activity focusing on decisions related to the
marketing mix variables. The marketing plan section should focus on strategies for the first three years of
the venture. For the first year, goals and strategies should be projected monthly. For years two and three,
market results should be projected based on longer-term goals. Preparing an annual marketing plan
becomes the basis for planning other aspects of the business.
Understanding the marketing plan
The marketing plan should answer three basic questions:
Where have we been? -The history of the marketplace, marketing strengths and weaknesses, and market
opportunities.
Where do we want to go (short term)? - Marketing objectives and goals in the next twelve months.
How do we get there? -Specific marketing strategy that will be implemented.
The marketing plan should be a guide for implementing marketing decision-making and not a superficial
document. The mere organization of the thinking process involved in preparing a marketing plan can be
helpful in understanding and recognizing critical issues.
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Table of Contents:
  1. THE NATURE AND IMPORTANCE OF ENTREPRENEURSHIP:DEFINITION OF ENTREPRENEUR
  2. THE NATURE AND IMPORTANCE OF ENTREPRENEURSHIP:Possibility of New Venture Formation
  3. ENTREPRENEURIAL PROCESS/START UPS:GOVERNMENT AS AN INNOVATOR
  4. THE ENTREPRENEURIAL AND ENTREPRENEURIAL MIND:ENTREPRENEURIAL PROCESS
  5. THE ENTREPRENEURIAL AND ENTREPRENEURIAL MIND (continued…)
  6. THE ENTREPRENEURIAL AND ENTREPRENEURIAL MIND (continued…):CLIMATE FOR ENTREPRENEURSHIP
  7. THE ENTREPRENEURIAL AND ENTREPRENEURIAL MIND (continued…):PROBLEMS AND SUCCESSFUL EFFORTS
  8. THE INDIVIDUAL ENTREPRENEUR:ENTREPRENEURIAL BACKGROUND AND CHARACTERISTICS
  9. THE INDIVIDUAL ENTREPRENEUR (continued…):Personal Values, Work History, MOTIVATION
  10. THE INDIVIDUAL ENTREPRENEUR (continued…):ROLE MODELS AND SUPPORT SYSTEMS
  11. INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES:INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES, Minority interests
  12. INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):DIRECT FOREIGN INVESTMENT
  13. INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):BARRIERS TO INTERNATIONAL TRADE
  14. INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):ENTREPRENEURIAL PARTNERING
  15. INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):SOURCES OF NEW IDEAS
  16. CREATIVITY AND THE BUSINESS IDEA:METHODS OF GENERATING NEW IDEAS, CREATIVE PROBLEM SOLVING
  17. CREATIVITY AND THE BUSINESS IDEA:PRODUCT PLANNING AND DEVELOPMENT PROCESS
  18. LEGAL ISSUES FOR THE ENTREPRENEUR:NEED FOR A LAWYER, PATENTS
  19. LEGAL ISSUES FOR THE ENTREPRENEUR:TRADEMARKS, LICENSING
  20. LEGAL ISSUES FOR THE ENTREPRENEURS:PRODUCT SAFETY AND LIABILITY, INSURANCE
  21. CREATING AND STARTING THE VENTURE:WHAT IS THE BUSINESS PLAN, PRESENTING THE PLAN
  22. CREATING AND STARTING THE VENTURE (Continued….):WRITING THE BUSINESS PLAN
  23. CREATING AND STARTING THE VENTURE (Continued….):
  24. CREATING AND STARTING THE VENTURE (Continued….):WHY SOME BUSINESS PLANS FAIL, MARKETING PLAN
  25. THE MARKETING PLAN:MARKET RESEARCH FOR THE NEW VENTURE
  26. THE MARKETING MIX:STEPS IN PREPARING THE MARKETING PLAN
  27. THE ORGANIZATIONAL PLAN:DEVELOPING THE MANAGEMENT TEAM, LEGAL FORMS OF BUSINESS
  28. THE ORGANIZATIONAL PLAN (Continued….)
  29. THE ORGANIZATIONAL PLAN (Continued….):THE LIMITED LIABILITY COMPANY
  30. THE FINANCIAL PLAN:OPERATING AND CAPITAL BUDGETS
  31. THE FINANCIAL PLAN (Continued….):PRO FORMA INCOME STATEMENTS, PRO FORMA CASH FLOW
  32. PRO FORMA SOURCES AND USES OF FUNDS:PERSONAL FUNDS, FAMILY AND FRIENDS
  33. PRO FORMA SOURCES AND USES OF FUNDS:COMMERCIAL BANKS
  34. BANK LENDING DECISIONS:SMALL BUSINESS ADMINISTRATION LOANS
  35. SOURCES OF CAPITAL:GOVERNMENT GRANTS
  36. SOURCES OF CAPITAL:PRIVATE PLACEMENT, BOOTSTRAP FINANCING
  37. CAPITAL SOURCES IN PAKISTAN:PROVINCIAL LEVEL INSTITUTIONS, FINANCIAL INSTITUTIONS
  38. PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENT DECISIONS (Continued….)
  39. PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENT DECISIONS (Continued….)
  40. PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENT DECISIONS (Continued….)
  41. PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENT DECISIONS (Continued….)
  42. PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENT DECISIONS (Continued….)
  43. NEW VENTURE EXPANSION STRATEGIES AND ISSUES:JOINT VENTURES, ACQUISITIONS
  44. NEW VENTURE EXPANSION STRATEGIES AND ISSUES (Continued….):DETERMINING THE PRICE FOR AN ACQUISITION
  45. ENTREPRENEURSHIP & PAKISTAN:GENDER DEVELOPMENT STATUS WOMAN AS AN ENTREPRENEUR IN PAKISTAN