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LBO   Local Business Opportunities   Branka Bukvi ć  bukvica @sezampro.yu   WELCOME
Introduction  <ul><li>Expectations  </li></ul><ul><li>About the topic and its importance  </li></ul><ul><li>How will we wo...
Objectives  <ul><li>To induce right acceptance and understanding of  entrepreneurship as   perspe c tiv e way of employmen...
Acceptance and absorption of knowledge and skills needed  <ul><li>What is entrepreneurship  </li></ul><ul><li>Entrepreneur...
T opics by days  Da y  I  B e an entrepreneur  Da y  II  Evaluate the opportunity  Da y  III  Me asuring success  Da y  IV...
Your trainer  <ul><li>Branka Bukvić  </li></ul><ul><li>Education and training :  </li></ul><ul><ul><li>Faculty of Agricult...
Work p lan  Da y  I  B e an entrepreneur  9:00 – 11:00  16:00 – 18:00  Where am I in this story ?  S elf assessment of ent...
Task :  D efin e the meaning of the words :   ENTREPRENEURSHIP and ENTREPRENEUR Write down your definitions on moderation ...
E NTREPRENEURSHIP  is assuming the risks and responsibilities in creating and implementing business strategy or starting-u...
Entrepreneurship  <ul><li>One more  d efinition: </li></ul><ul><li>Entrepreneurship is a complex group of activities imple...
A nd what about business ?  <ul><li>Business is a group of activities  </li></ul><ul><li>satisfying the needs of  </li></u...
<ul><li>Task :  </li></ul><ul><li>Why do you want to become entrepreneur ? </li></ul><ul><li>Write down your answers  </li...
About entrepreneurship  <ul><li>Fo cused on  inova tions and changes ,  action   oriented  way of thinking   –  do somethi...
Businessman – entrepreneur  <ul><li>Strong personality and persistency  </li></ul><ul><li>Operative,  </li></ul><ul><li>Cr...
Do you have a business character ? N o ,  if  ... You just try to minimize the risks  N o one will take you seriously! ......
<ul><li>Task :  Am I an entrepreneur ? </li></ul><ul><li>Fill in the questionnaire and  </li></ul><ul><li>Check your entre...
What do you need to be a good entrepreneur ? Psiho   stabil ity  P ersistency Courage for what you do  Acceptance of confl...
<ul><li>Task :  </li></ul><ul><li>where are you and where are you going to be?   </li></ul><ul><li>Draw a picture of yours...
Fa c tor s contributing to the success   Patience  Health  Learning  Ri s k Feelings Good relationships with people  Takin...
Let’s divide into the groups
Advantages and dissadvantages  S  Streng ht s  W  Weaknesses  O  Opportunities  T  Tr ea ths
<ul><li>Task :  </li></ul><ul><li>Do the  SWOT anal ysis for your team   </li></ul><ul><li>So we can see if we are adequat...
Entrepreneurship ¥ € $
Key elements of entrepreneurship process  <ul><li>1. Entrepreneur and management team  </li></ul>
2. Business opportunity  Every  problem = chance
3.   Resources
Local business opportunities  Evaluate the opportunity  Branka Bukvi ć
Pre conditions for  entrepreneurship/entrepreneur  <ul><li>idea  –  dream ,  goal ,  unused market opportunity  </li></ul>...
Objectives for the day  <ul><li>To learn how to  </li></ul><ul><li>Collect data needed from available sources,  informatio...
Work p lan  Monday  Tuesday  Wednesday  Thursday  Friday  B e an entrepreneur   Evaluate the opportunity  Me asuring succe...
<ul><li>Few examples  Nekoliko primera  </li></ul><ul><ul><li>From the “developed” world  </li></ul></ul>
Choosing and assessing business idea  How to gain a successful idea ?
Funnel m odel  100 – 500  i dea s BRAINSTORMING   Ma c ro  sele ction  (v alidation ) Mi c ro selec tion  (v alidation ) 5...
<ul><li>Task :   in teams  </li></ul><ul><li>Look for and recognize potential opportunities  </li></ul><ul><li>Collect and...
<ul><li>Advantage over existing products or services  </li></ul><ul><li>Following attitude and beliefs of customers  </li>...
<ul><li>Good business idea has to satisfy  customers’ needs  and/or  demands  </li></ul><ul><li>If your business idea is n...
Business  idea research  Wishes Demands NEEDS Where does the research lead ? Customer needs best sattisfying idea  Match  ...
<ul><li>Task :   in teams  </li></ul><ul><li>Recognize development trends and potential business opportunities using inter...
Research your business idea !!! Customers’ p rofil e   Product’s characteristics/benefits  Target market  Market/ industr ...
Make the profile of the paying customer!   <ul><li>Write down as many as possible characteristics of the customers for who...
List and describe characteristics of your product/service <ul><li>Defin e  properties/characteristics of your product/serv...
What is the growth  poten t ial  on the market?  <ul><li>Is the industrial branch or the market in which you wish to do th...
Define  main  geogra phical areas where you intend to sell in the first year <ul><li>Defini ng place where you will sell d...
What does competition sell in this area?   <ul><li>When you define who and where are your customers, you have to define wh...
Estimate the price you can ask and still remain competitive!  <ul><li>Estimating how competitive you might be can be a gre...
How are you going to inform customers that you exist?   <ul><li>Advertising  </li></ul><ul><li>Personal sale  </li></ul><u...
<ul><li>Task :   </li></ul><ul><li>Define  missing parts in the existing information and obstacles to transfer the idea in...
<ul><li>Homework :   </li></ul><ul><li>Collect brochures and other materials available  </li></ul><ul><li>Use data from th...
Choose good business idea  <ul><li>Review your own advantages and abilities and assess what are you good in  </li></ul><ul...
<ul><li>Task :   </li></ul><ul><li>Choose your business ideas  </li></ul><ul><li>Expected  re s ult:   </li></ul><ul><li>L...
Entrepreneurship ¥ € $
<ul><li>Few examples from local area   </li></ul><ul><li>www.shockart.org  </li></ul>
Local business opportunities  Me asuring success  Branka Bukvi ć
Objectives  <ul><li>To reach basic understanding of :  </li></ul><ul><li>Business idea assessment e lement s  </li></ul><u...
Work p lan  Monday  Tuesday  Wednesday  Thursday  Friday  B e an entrepreneur   Evaluate the opportunity   Me asuring succ...
What is failure ?  <ul><li>“ Failure is just the possibility to start from the beginning much more intelligent &quot;  </l...
Causes of failure  <ul><li>Managers’ incompetence or inexperience  </li></ul><ul><li>Indifference  </li></ul><ul><li>Weak ...
Causes of success  <ul><li>Hard work and commitment  </li></ul><ul><li>Assurance of market demand for products and service...
Fa c tor s contributing to the success  Patience  Health  Learning  Ri s k Feelings Good relationship with people  Taking ...
<ul><li>Task :   in teams  </li></ul><ul><li>Define me asurement of success for your business idea  </li></ul>
Assessment p roces s   Analysis of all influencing business aspects  Development of business strategy  Business planning  ...
Steps of business option analysis  <ul><li>Notice the problem on the market  </li></ul><ul><li>Find adequate business oppo...
Defining and choosing the business idea  <ul><li>1. Basic criteria in business options analysis  </li></ul><ul><li>2. Rele...
Basic criteria in business options analysis  <ul><li>Business should: </li></ul><ul><li>a) Reflect person and interests of...
Relevant factors    in business options analysis  <ul><li>TIME :  commitment to the business , balancing obligations to th...
<ul><ul><ul><li>Relevant factors    in business options analysis  </li></ul></ul></ul><ul><li>EXPERTISE LEVEL AND BUSINESS...
Possible alternatives for creating business options  <ul><li>Buying existing business (company)  Kupovina postoje ć eg  po...
Buying an existing business  <ul><ul><ul><ul><li>PRO  </li></ul></ul></ul></ul><ul><li>Approved business ,  lower risk ,  ...
What should be investigated when buying existing business ?  <ul><li>Why is the owner selling the business  </li></ul><ul>...
N ew business  <ul><ul><ul><ul><li>PRO  </li></ul></ul></ul></ul><ul><li>Starts at chosen location  </li></ul><ul><li>Faci...
What should be investigated when starting a new business  <ul><li>Needs for new product or service  </li></ul><ul><li>Loca...
Franchising  <ul><ul><ul><li>PRO  </li></ul></ul></ul><ul><li>Business experience not needed  </li></ul><ul><li>Consulting...
Forms of ownership  <ul><li>Solo business  –  Business owned by one owner  </li></ul><ul><li>Partnership  –  Business owne...
Ways to provide financial resources needed  <ul><li>Personal resources  </li></ul><ul><li>Family and friends  </li></ul><u...
<ul><li>Task :   </li></ul><ul><li>Evaluate recognized business opportunity/idea  </li></ul><ul><li>Consider :   </li></ul...
Small business development support  <ul><li>Small business development support in our country is conducted through the eff...
Preparation for the meeting  <ul><li>What do you expect from tomorrow`s meeting ?  (Defi n e  your goals and objectives ) ...
Entrepreneurship ¥ € $
Local business opportunities  From idea to business  Branka Bukvi ć
Objective  <ul><li>Get familiar with basic legislation dealing with commercial business in order to ease decision on start...
Work p lan  Monday  Tuesday  Wednesday  Thursday  Friday  B e an entrepreneur   Evaluate the opportunity   Me asuring succ...
Shop  or  Company ?   <ul><li>Autonomous  –  entrepreneuring   shop   </li></ul><ul><li>Enterprise  –  commercial   compan...
Shop  –  advantages   <ul><li>Most frequent form for the start  </li></ul><ul><li>Simple, easy to establish and manage  </...
Shop  –  disadvantages  <ul><li>Owner’s responsibility not limited – obligations guarantied by whole personal property  </...
Company  –  disadvantages  <ul><li>More complex organization, complicated for beginners  </li></ul><ul><li>Registration p ...
Company  –  advantages (1)  <ul><li>Owners are accountable for liabilities only within the company’s property, not by his/...
Company  –  advantages (2)  <ul><li>Easier to finance the activities  </li></ul><ul><li>Accepted more seriously by other c...
Tax treatment  <ul><li>Shop owner pays one tax on income  </li></ul><ul><li>Company owner pays personal income tax and com...
Who to ask ?  <ul><li>Bookkeeper ?  </li></ul><ul><ul><li>Bookkeeping is easier for shops  </li></ul></ul><ul><ul><li>Pena...
Recommendation  1  <ul><li>For  </li></ul><ul><li>simple small business with limited growth and development opportunities ...
Recommendation  2  <ul><li>For serious intentions, for  </li></ul><ul><li>long lasting, growing and developing business  <...
Establishing a shop  <ul><li>A shop means :  </li></ul><ul><li>Store, workshop ,  office , b u r eau , servi ce , agenc y ...
Registra tion of the shop  <ul><li>From  01 - 01 - 2006  registration of entrepreneurs is conducted by the Agency for Comm...
Establishing the enterprise  <ul><li>Ortačko društvo (OD)  -  Partnership Company </li></ul><ul><li>Komanditno društvo (KD...
Found  PC   or   PLC ?  <ul><li>Consider :  </li></ul><ul><li>Manner of fund raising for business activities  </li></ul><u...
Registra tion of a company ( 1 ) <ul><li>Application in the Commercial Court   </li></ul><ul><li>Do c umenta tion :  </li>...
Registra tion of a Company   ( 2 ) <ul><li>Making the round stamp or   the protocol journal stamp   </li></ul><ul><li>Appl...
Commitments upon establishment of the shop/company <ul><li>Keeping business books   </li></ul><ul><li>Recording of busines...
Bookkeeping   <ul><li>Single-entry bookkeeping principle   </li></ul><ul><li>Double-entry book-keeping principle   </li></...
Recording business changes   <ul><li>Issuing of bills   </li></ul><ul><li>Payment of daily receipts   </li></ul><ul><li>Co...
Payment of taxes and fees <ul><li>Value Added Tax   (VAT) </li></ul><ul><li>Company Profit Tax   </li></ul><ul><li>Taxes a...
Documentation   <ul><li>Business letter   </li></ul><ul><li>Envelope   </li></ul><ul><li>Invoice   </li></ul><ul><li>Trans...
Seven business advices   <ul><li>Plan! </li></ul><ul><li>Get organized before you start ! </li></ul><ul><li>Find right peo...
And 7 most frequent mistakes   <ul><li>Follow the idea without a plan  </li></ul><ul><li>Sell goods too cheap   </li></ul>...
Entrepreneurship ¥ € $
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Branka Bukvic- Local Business Opportunities

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Local Business Opportunities

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  • Transcript of "Branka Bukvic- Local Business Opportunities"

    1. 1. LBO Local Business Opportunities Branka Bukvi ć bukvica @sezampro.yu WELCOME
    2. 2. Introduction <ul><li>Expectations </li></ul><ul><li>About the topic and its importance </li></ul><ul><li>How will we work </li></ul><ul><li>Rules </li></ul>
    3. 3. Objectives <ul><li>To induce right acceptance and understanding of entrepreneurship as perspe c tiv e way of employment </li></ul><ul><li>Encourage participants for entrepreneurship actions </li></ul><ul><li>Pr epare participants for understanding and interpretation of business opportunities in the local surrounding </li></ul>
    4. 4. Acceptance and absorption of knowledge and skills needed <ul><li>What is entrepreneurship </li></ul><ul><li>Entrepreneur’s profile </li></ul><ul><li>How to assess own strengths and weaknesses – see yourself as a potential entrepreneur </li></ul><ul><li>Development needs and trends in business surrounding – research and surrounding analysis </li></ul><ul><li>How to evaluate business opportunities </li></ul><ul><li>How to recognize and/or develop potentially good business ideas </li></ul><ul><li>How to evaluate business idea </li></ul><ul><li>How to turn an idea into real business </li></ul>
    5. 5. T opics by days Da y I B e an entrepreneur Da y II Evaluate the opportunity Da y III Me asuring success Da y IV Research in live Da y V From idea to business
    6. 6. Your trainer <ul><li>Branka Bukvić </li></ul><ul><li>Education and training : </li></ul><ul><ul><li>Faculty of Agriculture </li></ul></ul><ul><ul><li>International business management </li></ul></ul><ul><ul><li>2 co urs es per year </li></ul></ul><ul><li>Over 20 years of training and consulting experience with different groups of trainees </li></ul><ul><li>First employment in Institut e for small grains in Kragujevac </li></ul><ul><li>Now working for </li></ul><ul><ul><li>AgroQuality o.d. ( co owner , dire c tor) </li></ul></ul><ul><ul><li>YU Build d.o.o. ( employee ) </li></ul></ul><ul><ul><li>Free - l a nce r </li></ul></ul>
    7. 7. Work p lan Da y I B e an entrepreneur 9:00 – 11:00 16:00 – 18:00 Where am I in this story ? S elf assessment of entrepreneurship abilities 11:20 – 13:00 18:20 – 20:00 I s there any place for me ? SWOT 13:00 – 13:30 20:00 – 21:00 Individual consulting upon request
    8. 8. Task : D efin e the meaning of the words : ENTREPRENEURSHIP and ENTREPRENEUR Write down your definitions on moderation cards and put them on the flipchart
    9. 9. E NTREPRENEURSHIP is assuming the risks and responsibilities in creating and implementing business strategy or starting-up a business . E NTREPRENEUR is a person who organize s and manages, taking into consideration the risk of any business action . An i ndividua l who starts own business and knows to assess the risk.
    10. 10. Entrepreneurship <ul><li>One more d efinition: </li></ul><ul><li>Entrepreneurship is a complex group of activities implemented to transfer an idea from state of imagination into a state of reality, or something real from existing state or shape into the shape or state wanted </li></ul>
    11. 11. A nd what about business ? <ul><li>Business is a group of activities </li></ul><ul><li>satisfying the needs of </li></ul><ul><li>the owner, </li></ul><ul><li>capital invested, </li></ul><ul><li>employees… </li></ul><ul><li>What’s missing here ? </li></ul>
    12. 12. <ul><li>Task : </li></ul><ul><li>Why do you want to become entrepreneur ? </li></ul><ul><li>Write down your answers </li></ul><ul><li>and we will discuss </li></ul>
    13. 13. About entrepreneurship <ul><li>Fo cused on inova tions and changes , action oriented way of thinking – do something new ( pr oduct , service, n ew met h od s, n ew organiza tion) </li></ul><ul><li>Entrepreneur spirit , art or group of learnable skills – born vs. trained ? </li></ul><ul><li>Developmental , limited , ve ry rare – expensive , the most dynamic res o ur ce </li></ul><ul><li>Entrepreneurship in small businesses and in big companies, in new and in already existing entities </li></ul><ul><li>Lever for economy restructuring ( OECD 1998). </li></ul>
    14. 14. Businessman – entrepreneur <ul><li>Strong personality and persistency </li></ul><ul><li>Operative, </li></ul><ul><li>Creative, </li></ul><ul><li>Critical approach, </li></ul><ul><li>Analytical mind, </li></ul><ul><li>Management abilities, </li></ul><ul><li>Technical abilities, </li></ul><ul><li>Motivated, </li></ul><ul><li>Communicative… </li></ul>
    15. 15. Do you have a business character ? N o , if ... You just try to minimize the risks N o one will take you seriously! ... You were born to achieve more There is nothing more in democracy, only more successful ! ... You wish to change the world to the better Donate the money for the charity, you will save your nerves and your money ! ... You have always been a good accountant You look for every penny and loose customer from the view! ... You don’t want to depend on any bureaucracy You must be crazy! ... You just copy and save these advices Forget them!
    16. 16. <ul><li>Task : Am I an entrepreneur ? </li></ul><ul><li>Fill in the questionnaire and </li></ul><ul><li>Check your entrepreneurship profile </li></ul>
    17. 17. What do you need to be a good entrepreneur ? Psiho stabil ity P ersistency Courage for what you do Acceptance of conflict management Decision making ability S elf-confidence Acceptance of no clear distinct of working and private hours S elf-management abilities Wish to learn
    18. 18. <ul><li>Task : </li></ul><ul><li>where are you and where are you going to be? </li></ul><ul><li>Draw a picture of yourself as you are now ! </li></ul><ul><li>Draw a picture of yourself as an entrepreneur ! </li></ul><ul><li>What is missing between these two pictures ? </li></ul><ul><li>Define important obstacles which you are facing, preventing you to become entrepreneur </li></ul>
    19. 19. Fa c tor s contributing to the success Patience Health Learning Ri s k Feelings Good relationships with people Taking responsibility Sales Family support
    20. 20. Let’s divide into the groups
    21. 21. Advantages and dissadvantages S Streng ht s W Weaknesses O Opportunities T Tr ea ths
    22. 22. <ul><li>Task : </li></ul><ul><li>Do the SWOT anal ysis for your team </li></ul><ul><li>So we can see if we are adequate for business </li></ul>
    23. 23. Entrepreneurship ¥ € $
    24. 24. Key elements of entrepreneurship process <ul><li>1. Entrepreneur and management team </li></ul>
    25. 25. 2. Business opportunity Every problem = chance
    26. 26. 3. Resources
    27. 27. Local business opportunities Evaluate the opportunity Branka Bukvi ć
    28. 28. Pre conditions for entrepreneurship/entrepreneur <ul><li>idea – dream , goal , unused market opportunity </li></ul><ul><li>entrepreneur - experience , passion , persistency , hard work </li></ul><ul><li>knowledge of the - market , customers , needs , te c hnolog y , the field of work </li></ul>
    29. 29. Objectives for the day <ul><li>To learn how to </li></ul><ul><li>Collect data needed from available sources, information about trends in the world, region, local community </li></ul><ul><li>Recognize, assess and choose the opportunities </li></ul><ul><li>Get the skills which an entrepreneur should develop </li></ul>
    30. 30. Work p lan Monday Tuesday Wednesday Thursday Friday B e an entrepreneur Evaluate the opportunity Me asuring success Meeting on the field From the idea to the business 9:00 – 11:00 16:00 – 18:00 Where am I in this story ? Crazy ideas everywhere How can I know ... Looking, listening, learning Learning by discussing 11:20 – 13:00 18:20 – 20:00 I s there a place for me ? Learning by doing: RESEARCH! ... that I am a business geni ous ! Who ask do not wonder Entrepreneurship ? YES
    31. 31. <ul><li>Few examples Nekoliko primera </li></ul><ul><ul><li>From the “developed” world </li></ul></ul>
    32. 32. Choosing and assessing business idea How to gain a successful idea ?
    33. 33. Funnel m odel 100 – 500 i dea s BRAINSTORMING Ma c ro sele ction (v alidation ) Mi c ro selec tion (v alidation ) 5 idea s 1 idea
    34. 34. <ul><li>Task : in teams </li></ul><ul><li>Look for and recognize potential opportunities </li></ul><ul><li>Collect and group ideas about profit able “ promising ” businesses in your surrounding </li></ul><ul><li>Define opportunities and present them to us </li></ul><ul><li>How did you recognize the potential ? </li></ul>
    35. 35. <ul><li>Advantage over existing products or services </li></ul><ul><li>Following attitude and beliefs of customers </li></ul><ul><li>Not too complex </li></ul><ul><li>Easy to show benefits to the customers </li></ul><ul><li>Customers can try innovation with no risk ( sample or trial use ) </li></ul><ul><li>Product/service available immediately </li></ul><ul><li>Customer believe that product or innovation satisfies his/her personal needs as it gives real benefit </li></ul>Ch a rac teristi cs of a successful business idea
    36. 36. <ul><li>Good business idea has to satisfy customers’ needs and/or demands </li></ul><ul><li>If your business idea is not original or do not satisfy customers’ needs, it needs improvements to be better than the competition </li></ul><ul><li>Entrepreneur should ask himself: </li></ul><ul><ul><li>Why should somebody buy from me instead of my competition? </li></ul></ul><ul><ul><li>Which is the value I add to the business or product/service ? </li></ul></ul>Do you have feasible business idea ?
    37. 37. Business idea research Wishes Demands NEEDS Where does the research lead ? Customer needs best sattisfying idea Match pro duct with customers’ wishes ; gain new customers , keep existing customers Useful and properly identified products ; fair competition , environmental protection , etc. Needs
    38. 38. <ul><li>Task : in teams </li></ul><ul><li>Recognize development trends and potential business opportunities using internet search </li></ul><ul><li>Expected result : </li></ul><ul><li>The list of business ideas </li></ul>
    39. 39. Research your business idea !!! Customers’ p rofil e Product’s characteristics/benefits Target market Market/ industr y t rend Competition Price Promotion Distrib u tion Production capacity Pro duction process Purchasers Sales Resources needed Fina n cial strengths – weaknesses Cash flow Licenses/approvals Business idea
    40. 40. Make the profile of the paying customer! <ul><li>Write down as many as possible characteristics of the customers for whom you believe that they will buy your product ( age , sex , marital status , income) and try to describe their life style. </li></ul><ul><li>If you expect to sell to other company or organization, assess : </li></ul><ul><ul><li>Which industry they belong to , </li></ul></ul><ul><ul><li>What kind of enterprise it is , </li></ul></ul><ul><ul><li>How long they exist in that business , </li></ul></ul><ul><ul><li>How many employees they have , </li></ul></ul><ul><ul><li>What is their yearly sales level , </li></ul></ul><ul><ul><li>Which department might be interested in your offer , </li></ul></ul><ul><ul><li>Who are their customers, </li></ul></ul><ul><ul><li>And anything else you can identify </li></ul></ul>
    41. 41. List and describe characteristics of your product/service <ul><li>Defin e properties/characteristics of your product/service </li></ul><ul><li>Find how will your customers benefit from those properties </li></ul><ul><li>List selling characteristics to use for advertising, making brochures and in sale presentations </li></ul><ul><li>This will help you to define why should your customer buy from you and not from competition </li></ul>
    42. 42. What is the growth poten t ial on the market? <ul><li>Is the industrial branch or the market in which you wish to do the business growing or slowing ? </li></ul><ul><li>Are the trends of new customers’ demands at the top or declining ? </li></ul><ul><li>See business and industry/trade papers ! </li></ul>
    43. 43. Define main geogra phical areas where you intend to sell in the first year <ul><li>Defini ng place where you will sell during the first year automatically focuses you ! </li></ul><ul><li>Assess how many potential customers are located in the chosen area </li></ul><ul><li>Important for sale in a larger area are also adequate financial management, marketing and resource management </li></ul><ul><li>Defini ng areas eases recognition of your needs as well </li></ul>
    44. 44. What does competition sell in this area? <ul><li>When you define who and where are your customers, you have to define who are you sharing them with </li></ul><ul><li>Research </li></ul><ul><li>Are there any similar products in retail and </li></ul><ul><li>How do similar companies advertise their products ( yellow pages , industrial phonebooks etc .) </li></ul>
    45. 45. Estimate the price you can ask and still remain competitive! <ul><li>Estimating how competitive you might be can be a great step to determining the feasibility of your idea </li></ul><ul><li>If your product is superior to the competition and market is not too price sensible, you can think about raising the prices over the competition </li></ul><ul><li>If you are selling to retailers or wholesalers you should leave space for them to incorporate their profit </li></ul>
    46. 46. How are you going to inform customers that you exist? <ul><li>Advertising </li></ul><ul><li>Personal sale </li></ul><ul><li>Establishing good public relations </li></ul><ul><li>Promoti onal actions </li></ul>
    47. 47. <ul><li>Task : </li></ul><ul><li>Define missing parts in the existing information and obstacles to transfer the idea into business </li></ul>
    48. 48. <ul><li>Homework : </li></ul><ul><li>Collect brochures and other materials available </li></ul><ul><li>Use data from the Chamber of Commerce, branch associations, statistical data and data from other relevant organizations and institutions… </li></ul>
    49. 49. Choose good business idea <ul><li>Review your own advantages and abilities and assess what are you good in </li></ul><ul><li>B e informed what’s going on and ready to use business opportunities whenever they show up </li></ul><ul><li>Design new product or service </li></ul><ul><li>Enrich existing product with added value </li></ul><ul><li>Explore other markets (chance to visit other country/region) </li></ul><ul><li>Improve existing product or service </li></ul><ul><li>Be informed - which products have high demand at the moment? </li></ul>
    50. 50. <ul><li>Task : </li></ul><ul><li>Choose your business ideas </li></ul><ul><li>Expected re s ult: </li></ul><ul><li>List of feasible business ideas </li></ul><ul><li>O ne idea chosen for further work </li></ul>
    51. 51. Entrepreneurship ¥ € $
    52. 52.
    53. 53. <ul><li>Few examples from local area </li></ul><ul><li>www.shockart.org </li></ul>
    54. 54. Local business opportunities Me asuring success Branka Bukvi ć
    55. 55. Objectives <ul><li>To reach basic understanding of : </li></ul><ul><li>Business idea assessment e lement s </li></ul><ul><li>Ways to assess own or recognized business idea </li></ul><ul><li>Success f a c tor s </li></ul>
    56. 56. Work p lan Monday Tuesday Wednesday Thursday Friday B e an entrepreneur Evaluate the opportunity Me asuring success Meeting on the field From the idea to the business 9:00 – 11:00 16:00 – 18:00 Where am I in this story ? Crazy ideas everywhere How can I know ... Looking, listening, learning Learning by discussing 11:20 – 13:00 18:20 – 20:00 I s there a place for me ? Learning by doing: RESEARCH! ... that I am a business geni ous ! Who ask do not wonder Entrepreneurship ? YES
    57. 57. What is failure ? <ul><li>“ Failure is just the possibility to start from the beginning much more intelligent &quot; </li></ul><ul><li>Henri Ford (30. J ul y 1863 - 7. A pril 1947) </li></ul>
    58. 58. Causes of failure <ul><li>Managers’ incompetence or inexperience </li></ul><ul><li>Indifference </li></ul><ul><li>Weak control systems </li></ul><ul><li>Lack of capital </li></ul>
    59. 59. Causes of success <ul><li>Hard work and commitment </li></ul><ul><li>Assurance of market demand for products and services </li></ul><ul><li>M anagers’ competence </li></ul><ul><li>Luck </li></ul>
    60. 60. Fa c tor s contributing to the success Patience Health Learning Ri s k Feelings Good relationship with people Taking responsibility Sales Family support
    61. 61. <ul><li>Task : in teams </li></ul><ul><li>Define me asurement of success for your business idea </li></ul>
    62. 62. Assessment p roces s Analysis of all influencing business aspects Development of business strategy Business planning Implementation – Regist e r ing the b usi n e s s
    63. 63. Steps of business option analysis <ul><li>Notice the problem on the market </li></ul><ul><li>Find adequate business opportunities </li></ul><ul><li>- te c hni que of market saturation </li></ul><ul><li>- technique of market segmenta tion </li></ul><ul><li>Setting the resources needed for realization of the business idea </li></ul><ul><li>Finan cial anal ysis of the business opportunity </li></ul><ul><li>Anal ysis of personal preferences and risk assessment </li></ul><ul><li>Choice of the business idea and its further analysis in the business plan </li></ul>
    64. 64. Defining and choosing the business idea <ul><li>1. Basic criteria in business options analysis </li></ul><ul><li>2. Relevant factors in business options analysis </li></ul><ul><li>3. Steps of business options analysis </li></ul><ul><li>4. Possible alternatives for creating business options </li></ul><ul><li>5. Forms of ownership </li></ul><ul><li>6. Ways to obtain financial resources needed </li></ul>
    65. 65. Basic criteria in business options analysis <ul><li>Business should: </li></ul><ul><li>a) Reflect person and interests of the entrepreneur (scope of work entrepreneur enjoys and has knowledge and experience about) </li></ul><ul><li>b) Have market and profit potentials – “offer what customers love” – listening to the market </li></ul>
    66. 66. Relevant factors in business options analysis <ul><li>TIME : commitment to the business , balancing obligations to the business and to the family, time needed till business starts to produce profit and till market position is established </li></ul><ul><li>FINANCIAL RESOURCES - limiting factor </li></ul><ul><li>POTENTIAL FINANCIAL RESULTS </li></ul>
    67. 67. <ul><ul><ul><li>Relevant factors in business options analysis </li></ul></ul></ul><ul><li>EXPERTISE LEVEL AND BUSINESS EXPERIENCE : the risk level is higher if there is no experience ; partnership ; franchising arrangements </li></ul><ul><li>RISK LEVEL : conceptual risk , production risk , marketing risk , financial risk , growth and development risk </li></ul>
    68. 68. Possible alternatives for creating business options <ul><li>Buying existing business (company) Kupovina postoje ć eg posla (firme) </li></ul><ul><li>New business Novi posao </li></ul><ul><li>Franchising Fran š izing </li></ul>
    69. 69. Buying an existing business <ul><ul><ul><ul><li>PRO </li></ul></ul></ul></ul><ul><li>Approved business , lower risk , financial sources </li></ul><ul><li>Sales and purchasing channels worked out </li></ul><ul><li>Trained workforce </li></ul><ul><li>Existing production facilities </li></ul><ul><ul><ul><ul><li>CONTRA </li></ul></ul></ul></ul><ul><li>Companies with problems are for sale </li></ul><ul><li>Poor image </li></ul><ul><li>Untrained workforce </li></ul><ul><li>Poor lo c a tion </li></ul><ul><li>In ade quate office space </li></ul><ul><li>Old equipment </li></ul>
    70. 70. What should be investigated when buying existing business ? <ul><li>Why is the owner selling the business </li></ul><ul><li>What is the condition of business facilities </li></ul><ul><li>Market situation </li></ul><ul><li>Finan cial po s i tion of the business </li></ul><ul><li>Legislation and legal aspects of buying the business </li></ul>
    71. 71. N ew business <ul><ul><ul><ul><li>PRO </li></ul></ul></ul></ul><ul><li>Starts at chosen location </li></ul><ul><li>Facilities instal led in accordance with pre-established objectives </li></ul><ul><li>More possibilities for innovations </li></ul><ul><li>Creating own image </li></ul><ul><li>Higher profit with lower investments </li></ul><ul><ul><ul><ul><li>CONTRA </li></ul></ul></ul></ul><ul><li>High risk </li></ul><ul><li>Long way to customers’ trust </li></ul><ul><li>Fund raising problem </li></ul><ul><li>Proces s of working out selling and purchasing channels </li></ul>
    72. 72. What should be investigated when starting a new business <ul><li>Needs for new product or service </li></ul><ul><li>Location </li></ul><ul><li>Market </li></ul><ul><li>Physical capacities </li></ul><ul><li>Human resources resurse </li></ul><ul><li>Projection of financial results </li></ul>
    73. 73. Franchising <ul><ul><ul><li>PRO </li></ul></ul></ul><ul><li>Business experience not needed </li></ul><ul><li>Consulting and training </li></ul><ul><li>Start-up expenses payment in installments </li></ul><ul><li>Centralized raw materials purchasing </li></ul><ul><li>Free promotion </li></ul><ul><li>Well known products and services </li></ul><ul><ul><ul><li>CONTRA </li></ul></ul></ul><ul><li>No freedom in decision making </li></ul><ul><li>Contracts strictly defined </li></ul><ul><li>Franchising rent </li></ul><ul><li>No transfer possibilities </li></ul><ul><li>Centralized raw materials purchasing </li></ul><ul><li>Activity of one user affects all </li></ul>
    74. 74. Forms of ownership <ul><li>Solo business – Business owned by one owner </li></ul><ul><li>Partnership – Business owned by partners </li></ul><ul><li>Corporate model - Company… </li></ul>
    75. 75. Ways to provide financial resources needed <ul><li>Personal resources </li></ul><ul><li>Family and friends </li></ul><ul><li>Business partners </li></ul><ul><li>Bank credits </li></ul><ul><li>Small business development funds </li></ul><ul><li>Purchasers credits </li></ul><ul><li>Venture capital </li></ul>
    76. 76. <ul><li>Task : </li></ul><ul><li>Evaluate recognized business opportunity/idea </li></ul><ul><li>Consider : </li></ul><ul><ul><li>Business options </li></ul></ul><ul><ul><li>Providing workforce needed </li></ul></ul><ul><ul><li>Operational costs </li></ul></ul><ul><ul><li>Additional financial sources </li></ul></ul>
    77. 77. Small business development support <ul><li>Small business development support in our country is conducted through the efforts of Agency for SME development, established by the Serbian Government </li></ul><ul><li>Who else ? </li></ul>
    78. 78. Preparation for the meeting <ul><li>What do you expect from tomorrow`s meeting ? (Defi n e your goals and objectives ) </li></ul><ul><li>Which are important questions for successful business ? </li></ul>
    79. 79. Entrepreneurship ¥ € $
    80. 80. Local business opportunities From idea to business Branka Bukvi ć
    81. 81. Objective <ul><li>Get familiar with basic legislation dealing with commercial business in order to ease decision on starting up a business </li></ul>
    82. 82. Work p lan Monday Tuesday Wednesday Thursday Friday B e an entrepreneur Evaluate the opportunity Me asuring success Meeting on the field From idea to business 9:00 – 11:00 16:00 – 18:00 Where am I in this story ? Crazy ideas everywhere How can I know ... Looking, listening, learning Learning by discussion 11:20 – 13:00 18:20 – 20:00 I s there a place for me ? Learning by doing: RESEARCH! ... that I am a business geni us ! Who asks does not stray Entrepreneurship ? YES
    83. 83. Shop or Company ?   <ul><li>Autonomous – entrepreneuring shop </li></ul><ul><li>Enterprise – commercial company </li></ul>
    84. 84. Shop – advantages <ul><li>Most frequent form for the start </li></ul><ul><li>Simple, easy to establish and manage </li></ul><ul><li>Does not require large investments </li></ul><ul><li>Recommended for businesses with no intention of large growth and spreading </li></ul><ul><li>Can employ the whole family, no additional staff cost (taxes and fees) </li></ul>
    85. 85. Shop – disadvantages <ul><li>Owner’s responsibility not limited – obligations guarantied by whole personal property </li></ul><ul><li>No clear criteria to distinguish personal and enterprise's property </li></ul><ul><li>Limited development </li></ul><ul><ul><li>Reorganization problem in case of spreading </li></ul></ul><ul><ul><li>No credits or international investments – partner is not interested to invest or even to do business because of mixed property </li></ul></ul><ul><li>Simple bookkeeping giving almost no information </li></ul>
    86. 86. Company – disadvantages <ul><li>More complex organization, complicated for beginners </li></ul><ul><li>Registration p rocedur e more complicated than for the shop </li></ul><ul><li>Initial capital needed for the start </li></ul>
    87. 87. Company – advantages (1) <ul><li>Owners are accountable for liabilities only within the company’s property, not by his/their personal assets </li></ul><ul><li>Legal entity </li></ul><ul><li>Organi s a tional advantages – development of several sectors easier to manage </li></ul><ul><li>D ouble-entry bookkeeping </li></ul><ul><li>Growth potential is not limited </li></ul><ul><li>cont… </li></ul>
    88. 88. Company – advantages (2) <ul><li>Easier to finance the activities </li></ul><ul><li>Accepted more seriously by other commercial entities, public institutions, financial institutions, business partners and even themselves </li></ul><ul><li>No ambiguity between personal earning, commercial entity property, salaries, profit </li></ul><ul><li>Higher credit capability of the director and/or employees </li></ul>
    89. 89. Tax treatment <ul><li>Shop owner pays one tax on income </li></ul><ul><li>Company owner pays personal income tax and company pays tax on profit </li></ul><ul><ul><li>Double tax for company </li></ul></ul><ul><li>Shop always pays tax, even if it doesn’t work or suffers losses </li></ul><ul><li>Company, if no turnover, hands over tax applications showing the loss and in that case it does not pay taxes </li></ul>
    90. 90. Who to ask ? <ul><li>Bookkeeper ? </li></ul><ul><ul><li>Bookkeeping is easier for shops </li></ul></ul><ul><ul><li>Penal policy for commercial offense – higher penalties for companies </li></ul></ul><ul><li>E conomist ? </li></ul><ul><ul><li>F inan cing business activities </li></ul></ul><ul><li>Lawyer ? </li></ul><ul><ul><li>Legal advice is needed and you ask it from the lawyer, not from the bookkeeper, in the same way as nobody asks the lawyer to keep company books </li></ul></ul>
    91. 91. Recommendation 1 <ul><li>For </li></ul><ul><li>simple small business with limited growth and development opportunities </li></ul><ul><li>chose </li></ul><ul><li>the legal form of </li></ul><ul><li>autonomous – enterpreneuring shop </li></ul>
    92. 92. Recommendation 2 <ul><li>For serious intentions, for </li></ul><ul><li>long lasting, growing and developing business </li></ul><ul><li>choose the legal form of </li></ul><ul><li>commercial company – enterprise </li></ul>
    93. 93. Establishing a shop <ul><li>A shop means : </li></ul><ul><li>Store, workshop , office , b u r eau , servi ce , agenc y , studio, pansion, pharmacy , practice … </li></ul><ul><li>Most often used abbreviations : </li></ul><ul><ul><li>STR – independent trading shop ; </li></ul></ul><ul><ul><li>SZR – independent crafts shop ; </li></ul></ul><ul><ul><li>SUR – independent catering shop </li></ul></ul><ul><li>Registra tion in the municipality unit authorized for commercial issues </li></ul>
    94. 94. Registra tion of the shop <ul><li>From 01 - 01 - 2006 registration of entrepreneurs is conducted by the Agency for Commercial Registers . </li></ul><ul><li>The founder can be one person and in that case it is the Autonomous Shop or it can be several persons (10 max) in which case it is Partnership Shop </li></ul><ul><li>Documentation : </li></ul><ul><ul><li>Registra tion application form </li></ul></ul><ul><ul><li>Personal ID or passport of the founder/all partners </li></ul></ul><ul><ul><li>Evidence on paid fee </li></ul></ul><ul><ul><li>Decision of an authorized body, if needed </li></ul></ul>
    95. 95. Establishing the enterprise <ul><li>Ortačko društvo (OD) - Partnership Company </li></ul><ul><li>Komanditno društvo (KD) – Limited Partnership Company </li></ul><ul><li>Akcionarsko društvo (AD) - Joint Stock Company </li></ul><ul><li>Društvo sa ograničenom odgovornošću (d.o.o.) – Limited Liability Company </li></ul>
    96. 96. Found PC or PLC ? <ul><li>Consider : </li></ul><ul><li>Manner of fund raising for business activities </li></ul><ul><li>Level of personal risk that the founder is willing to take </li></ul><ul><ul><li>Partnership Company – whole property </li></ul></ul><ul><ul><li>Limited Liability Company – only property entered into the company </li></ul></ul><ul><li>Level of control over business operations </li></ul><ul><li>Usual form for beginners is PLC . </li></ul>
    97. 97. Registra tion of a company ( 1 ) <ul><li>Application in the Commercial Court </li></ul><ul><li>Do c umenta tion : </li></ul><ul><ul><li>Deed on Foundation </li></ul></ul><ul><ul><li>Statut e </li></ul></ul><ul><ul><li>Lease Agreement on the business premises or proprietary document </li></ul></ul><ul><ul><li>Decision on Appointment of the Director </li></ul></ul><ul><ul><li>Photocopy of the Director`s Personal Identity Card </li></ul></ul><ul><ul><li>Form (OP) with the verified signature of the Director </li></ul></ul><ul><ul><li>Photocopy of the Founder`s Personal Identity Card </li></ul></ul><ul><ul><li>Founder`s Residence Certificate ( not older than one month ) </li></ul></ul><ul><ul><li>Bank report on received founder`s deposit </li></ul></ul><ul><ul><li>Filled application forms for the registration in the Commercial Court </li></ul></ul><ul><li>Fees </li></ul><ul><ul><li>for verification of the OP form (4 copies) by the municipality </li></ul></ul><ul><ul><li>for verification of the Deed of Foundation in the court </li></ul></ul><ul><ul><li>for receipt of the application in the Commercial Court </li></ul></ul>
    98. 98. Registra tion of a Company ( 2 ) <ul><li>Making the round stamp or the protocol journal stamp </li></ul><ul><li>Application to the Republic Institute of Statistics – personal number </li></ul><ul><ul><li>The area of activity should be carefully described as it implies payment of all municipal fees </li></ul></ul><ul><li>Application to the Tax Department for income tax , municipal fees and obtaining of the PIB ( Tax Identification Number) </li></ul><ul><li>Opening of the transfer or current account with a business bank – which can not be done without the PIB </li></ul><ul><li>Written instruction to the business bank to transfer the deposited part of the founder`s deposit to the newly opened account </li></ul><ul><li>Entry into the customs taxes payers register – only in case of the foreign trading </li></ul><ul><li>Registra tion in the Pension & Social Insurance Fund </li></ul><ul><li>Registration of the employees at the Labor Market, Pension and Social Insurance Fund and the Health Insurance Fund </li></ul>
    99. 99. Commitments upon establishment of the shop/company <ul><li>Keeping business books </li></ul><ul><li>Recording of business changes </li></ul><ul><li>Payment of taxes and fees </li></ul>
    100. 100. Bookkeeping <ul><li>Single-entry bookkeeping principle </li></ul><ul><li>Double-entry book-keeping principle </li></ul><ul><li>Business books are kept by an authorized person or agency </li></ul>
    101. 101. Recording business changes <ul><li>Issuing of bills </li></ul><ul><li>Payment of daily receipts </li></ul><ul><li>Collecting of bank account statements </li></ul><ul><li>Keeping records about receipt and delivery of goods </li></ul><ul><li>Keeping records about commodities on stock </li></ul><ul><li>Payment of liabilities </li></ul><ul><li>Documentation must be kept in the shop/company </li></ul>
    102. 102. Payment of taxes and fees <ul><li>Value Added Tax (VAT) </li></ul><ul><li>Company Profit Tax </li></ul><ul><li>Taxes and fees on revenues from independent business activities </li></ul><ul><li>Fees for compulsory social insurance on earnings and remunerations </li></ul><ul><li>Excises </li></ul>
    103. 103. Documentation <ul><li>Business letter </li></ul><ul><li>Envelope </li></ul><ul><li>Invoice </li></ul><ul><li>Transfer order </li></ul><ul><li>Logo – company sign </li></ul><ul><li>Markings and marketing material </li></ul><ul><li>Business cards </li></ul>
    104. 104. Seven business advices <ul><li>Plan! </li></ul><ul><li>Get organized before you start ! </li></ul><ul><li>Find right people ! </li></ul><ul><li>Manage smartly ! </li></ul><ul><li>Monitor and check ! </li></ul><ul><li>Measure results ! </li></ul><ul><li>Have your staff constantly informed ! </li></ul>
    105. 105. And 7 most frequent mistakes <ul><li>Follow the idea without a plan </li></ul><ul><li>Sell goods too cheap </li></ul><ul><li>Starting the business for fun only </li></ul><ul><li>Marketing without an idea </li></ul><ul><li>More a pal than a manager </li></ul><ul><li>Overspending </li></ul><ul><li>Neglecting your loved ones </li></ul>
    106. 106. Entrepreneurship ¥ € $
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