GENERAL WINGATE POLY

TECHIC COLLEGE

TVET-PROGRAMME TITLE: Plumbing

Installation Level III
Compétence Title:improve Business Practice
MODULE Title:improving Business Practice
Module Code:EIS Pi3 M18 0120
NOMINAL DURATION:30 Hrs
 Developing Understanding of Entrepreneurship

The Course has 5 elements. These are:-

1.Describe concept of Entrepreneurship
2.Discuss how to become Entrepreneur?
3.Discuss how to organize an Enterprise?
4.Discuss how to operate an Enterprise?
5.Develop one’s own business plan
 1.Describe concept of Entrepreneurship

• An entrepreneur is defined as “person in effective control of commercial

undertaking; one who undertakes a business or an enterprise”.
• Entrepreneur is an innovative person who maximizes his profits by following
new strategies or venturing into new products or services.
• Entrepreneurs may be successful and un successful.
• Successful Entrepreneurs are:-
 Creative and Innovative
 Position themselves in shifting or new markets
 Create new products
 Create new processes and
 Create new delivery
 Con…….

• But, un successful Entrepreneurs may

be:-
• Poor Managers
• Low work ethic
• Inefficient
• Failure to plan and prepare
• Poor money managers
 2.Discuss how to become Entrepreneur?

• To be an entrepreneur:-
Observes the environment
Identify opportunities
Implement the activity and
Receive financial or social rewards
 A. Entrepreneurial Function in Business

• Entrepreneurial functions in business are:-

 Identifying gaps in the market
Obtaining finances for the business
Managing the business
Bearing the risks and
Encouraging competition
 B.Importance of Entrepreneurship

• The importance’s of entrepreneurship are:-

Employment Creation
Utilize local resources
Decentralization and Diversification of Business
Promotion of Technology
Capital Formation and
Promotion of an Entrepreneurial Culture
 C. Entrepreneurial Resources

• Entrepreneurial resources are:-

 Money
Equipment
Energy
Skills
Knowledge and
Time
  D. Features of Entrepreneurship

• Some features of entrepreneurship may include:-

Risk Taker
Perceptive/Understanding
Curious/Questioning
Imaginative/Creative
Persistent/Constant
Goal-setting
Hardworking
Self-confident
Flexible and
Independent/Free
 3. Discuss how to organize an Enterprise?

• There is no single or universal definition about

enterprising. That is why many scholars defined it
differently. For example,
• On a personal level, enterprising can be any
identified idea that a person can translate into a
planned and satisfactorily implemented activity.
• In the business sense, enterprising refers to the
implementation of a business venture or
undertaking.
 A. Characteristics of Enterprising

• Enterprising are characterized by:-

• E꞊ Energy
• N ꞊Need to achieve
• T꞊ Task oriented
• E꞊ Empathy
• R꞊ Resourcefulness
• P ꞊Planning
• R꞊ Risk-taking
• I ꞊Innovation
• S꞊ Skills
• I꞊꞊ Independence
• N꞊ Networking
• G꞊ Goal oriented
 B. Classification of Enterprises

• All enterprises may be:-

• Private or Public
• Formal or Informal
• Individual or Community
• Local or Foreign
• Manufacturing or Service
• Consumer or Industrial
• Business or Social (non- business)
• Small or Large
 Small Enterprises
• Some examples of small enterprises
are:-
• Manufacturing Businesses
• Wholesale Trade
• Retail Trade
• Services
 Advantages and Disadvantages
• Advantages small enterprises may include:-
Greater Opportunity to get rich through stock options
Feel more important
Feel more secure and
Comfort Level
• Disadvantages small enterprises may include:-
Lower guaranteed pay
Fewer benefits
Expected to have many skills
Too much unity
Hard to move to a big company and
Large fluctuations in inco possible
 4.Discuss how to operate an Enterprise?
• To operate any business enterprises we all have
to:-
understand business idea
Know the reason about business ideas
Know sources of business ideas and
Select business opportunity
 Understanding Business Idea

• A business idea is the response of a person or

an organization to solving an identified
problem or to meeting perceived needs in the
environment (markets, community, etc.).
• Finding a good idea is the first step in
transforming the entrepreneur’s desire and
creativity in to a business opportunity.
 Knowing the Reason about Business Ideas

• The reasons that attract to generate business ideas

are:-
 To start a new business
 To respond to market needs
 To respond to changing consumer wants and
needs
 To stay ahead of the competition
 To do things better and
 To operate businesses effectively
 Know Sources of Business Ideas

• Sources of Business Ideas are:-

• Hobbies/Personal Interests
• Personal Skills and Experience
• Franchises
• Mass Media (newspapers, magazines, TV, Internet)
• Business Exhibitions
• Surveys
• Customer Complaints
• Changes in Society
• Brainstorming
• Being Creative
 5.Developing one’s Own Business Plan
• To Develop one’s own business plan you all are expected to know:-
A. Business Plan Questions
• The business plan questions are:-
1. What Is a Business Plan?
• Business Plan is a document which spells out the goals and
objective of a business and clearly outlines how and when they
will be achieved.
• A structured guideline to achieve a business goal.
• A road map to owning and operating a business.
• A proposal that describes a business opportunity for financing
agencies or investors.
• A detailed action program outlining every conceivable aspect of
the proposed business venture.
 2. Why Write a Business Plan?

• A business plan is written to assist in:-

Keeping you focused on your goals and strategies
Obtaining financing from outside sources
Guiding the opening of a business
Guiding the managing of a business
Communicating clearly with interested parties
Showing your business has chances of success
Showing you have the ability to manage the business
Showing there is a good market for your product or service
and
Comparing how the actual business performance differs from
the forecasted performance
 3. When Is a Business Plan Written?

• When thinking of going into

business?
• Before starting the business?
• When updating the business is
required?
• When new information is obtained?
• When new experiences are gained?
 4. Which Are the Types of Business Plans?
• Business Plans may be for:-
• Retail businesses
• Wholesale businesses
• Service businesses
• Manufacturing businesses
• Any other type of business
• The financier and
• The owner/manager
 5. Who Writes the Business Plan?
The one who writes the Business Plan
may include:-
• Business owner/manager
• An advice/support agency
• A computer programmers
• Every one interested
 6. How Is a Business Plan Written?

• Everyone can write a business plan by:-

 Identifying all the questions that might be asked
relating to the business
 Determining what further information needs to
be gathered to answer all the questions
 Obtaining all the necessary information
 Comparing various alternatives and
 Making a decision on each question
 7. What Is Done With a Business Plan?

• The owner refers to it often to see

whether actions and plans are
consistent.
• He/she takes it to the bank when
discussing funding.
• He/she discusses other sections of it
with the relevant interest group.
 8. What Does a Business Plan Look Like?

• It is typed and put in a nice folder

• The appearance of the business plan is expected to be
good
• There should be an index
• There should be a summary
• Each copy should be numbered
• You should sign it to show who is submitting it
• The length of the business plan will depend
on the nature of the business.
 
 9.What Is Contained in a Business Plan?

• A business plan may contain:-

Customers
Competitors
Suppliers
Financiers
Employees
Products
Locations and
Equipment
 B. The Structure of a Business Plan

• Specifically a business plan does the following:-

 Increases the probabilities of business success
 Clearly defines the activities Identifies all the resources
 Identifies standards of performance
 Personal background:- The first item in a plan should be a
written description of the applicant’s personal background,
including name, address, e-mail, phone number, education, family
status, sex, age and physical status.
 Business experience:- The entrepreneur’s ability to produce the
product and capture the market needs to be stated. With this in
mind, personal background motivations and experience are in the
end most important criteria for judging the viability of a business.
 The Structure of a Business Plan
• Business structure and description:- For a business in the formative phase a
statement of the adequacy of its ownership, legal form and capitalization
structure
• The market competition:- The size of the market, its growth potential and the
estimated share of the business in the market; current and potential new
competition; opportunities for expanding to other locations.
• Production or selling process for products or services:-
Providing detailed technical specifications may be unnecessary.
• A description of the products and/or services of the business
should provide a reasonable idea of what the company sells. The
most important item in this section is a description of why the
applicant’s product or service is better than that of its competitors .
• Financial status:-The capital required to start the business needs
to be indicated, together with assets and liabilities, showing the
proportion contributed by the owner.
 C. Lay out of a Business Plan
• The layouts of a business plan are:-
 Cover page
 Table of contents
 Executive summary
 Information about the owner or promoter of the business
 Description of the business idea and market
 Marketing plan
 Legal form
 Start-up capital and resources
 Organization and staff
 Business operation and costs
 Financial plan and
 Appendices
 D. How to Interpret the Findings of the Business
Plan?

• Before starting a business, we have to answer the

following questions.
• Will the business generate enough money?
• How many goods or services must the business
sell to cover the costs and to start making a
profit?
• What will happen when turnover decreases or
costs go up?
 E. Minimizing Problems of Starting a Business
• The following questions will help to determine whether you are in a position to start a business.
• A. Personal Qualifications
• 1. Why do you think you are the type of person who can start and operate a business successfully?
• 2. Will your family support your plans to start a business?
• 3. Have you worked in a business similar to the one you want to start?
• 4. Do you have supervisory or managerial experience necessary to be self-employed?
• 5. Have you had business training in the type of business you want to start?
• B. Customers and Market
• 1. Have you prepared a marketing plan?
• 2. How will customers distinguish your business from that of your competitors?
• 3. Will you have a credit policy for customers?
• 4. What advertising techniques will be used to attract customers?
• 5. How will you determine what the customer wants?
• C. Business Operators
• 1. How will you identify, select and train employees for the business?
• 2. How will you determine employee salary and benefits?
• 3. Is your business location accessible for customers (bus stops, parking, etc.)?
• 4. Does the business location have space for expansion?
• 5. Have you considered the positive and negative aspects of being a proprietor or forming a partnership, limited
company or cooperative?
• 6. Do you know what equipment, supplies and materials you will need and how much they will cost?
 Minimizing Problems of Starting a Business

D. Keeping Records
• 1. Do you have a record keeping system to keep track of income, expenses, credit sales and credit purchases?
• 2. Are you able to prepare and analyses financial statements?
• 3. Do you know how good inventory control can lower business expenses?
• 4. Do you know how to keep payroll records and make tax reports and payments?
• 5. Will you need assistance in keeping the financial records for your business?
E. Using Outside Assistance
• 1. Have you discussed the bookkeeping and other financial procedures with an accountant?
• 2. Have you discussed the legal requirements and regulations of your business with a lawyer?
• 3. Have you discussed the financial aspects of your business with a banker?
• 4. Has a consultant helped you to develop your business plan?
• 5. Have you discussed the challenges and opportunities of your business with other business owners in
the community?
F. Finances
• 1. Do you have enough money to start and operate the business for at least the first six months?
• 2. Over the next four years, could you make more money working for someone else rather than
starting your own business?
• 3. Do you know which suppliers will give the best service, lowest prices and best credit arrangements?
• 4. Based on accurate financial data, have you compared the cost of buying an existing business with
the cost of starting a new business?
• 5. Have you explored all possible sources of funding?
 Minimizing Problems of Starting a Business
G. Choosing the Right Legal Form
1. What are the legal costs involved in starting a business?
2. How does the owner’s liability depend on the legal form?
3. How does the legal form influence the acquisition
of capital?
4. What implications does the legal form have on
taxation?
5. How does the continuation of the business
depend on the legal form?
 F. Kind of Information and Assistance
A. Marketing information
1. Type
• Suppliers of materials, goods and services
• Customers – their buying power
• Competition from other businesses
• Distribution channel for the product(s)
• Pricing of goods and services
• Promotional strategies
• Market opportunities
2. Sources
• Customers
• Suppliers
• Business journals and catalogues
• Libraries
• Business Associations
• Trade fairs
• Internet
 B. Technical Information
1. Type
• Designing premises, products, stationery, web sites, etc.
• Nature of product/service you would like to engage in
• Tools and equipment you require
• Materials needed for your production process
• Technology choice, etc.
• Advice on location and premises
2. Sources
• Friends and colleagues
• Bureau of Standards
• Association of Manufacturers
• Industrial Research Development Institutes
• Industrial Estates
• Internet
 
 C. Information and communication technology (ICT)

1. Type
• Hardware, software and networks
• Packages on accounting and production
• Web sites for the business
• Databases appropriate for the business
• Internet
• Phones, both fixed and cell/mobile
2. Sources
• Local business networks
• Trade magazines
• References
• Trade journals
• Trade fairs
 D. Financial Information

1. Type
• Finances required
• Sources of business finance
• Economic conditions and trends within your community
• Management and financial controls
• Accounts and book-keeping systems
• Software packages
• Audit requirements
• Taxation matters
• Business purchase facilities
• Unemployment benefits funds
• Leasing companies
• Savings and loans cooperatives
• Special funds for vulnerable groups
• Franchising companies
2. Sources
• Venture capital funds
• Banks and other financial institutions
• Microfinance institutions
• Development loans and grants
• Financial institutions targeting women
• Mutual credit funds
• Family members and friends
• Suppliers and credit from other business owners
• Internet
 E. Legal Information

1. Type
• Legal form of business start-up
• How to obtain licences for your business
• Intellectual property issues
• Business registration
• Zones where particular businesses could be located, etc.
• Contracts
2. Sources
• Law firms
• Relevant Government Departments
• Libraries
• Internet
• Business Development Services providers
• Labour legislation
• Business associations
• Employers’ organizations
• Workers’ organization
 Sources of Information
 

•Sources of information may include:-


Catalogues

Business Associations

Government Publications

Banks

Mass Media

Libraries

Consultants

Assisting Agencies

Trade Exhibitions/Fairs and
Internet/Web Sites