Summer Course 2007 Entrepreneurship The World in Your Hands Your company, your ideas, your rules Faculdade de Ciências e Tecnologia Universidade Nova de Lisboa 29th August, Caparica

Stages of the Entrepreneurship Process Rogério Silveira ©

Basics: Five Best Ways to Get Rich Inheritance Marry rich Win a state lottery Be a show-biz or sports celebrity Start a company

Inheritance

Marry rich

Win a state lottery

Be a show-biz or sports celebrity

Start a company

Entrepreneurship is the practice of starting new organizations , particularly new businesses generally in response to identified opportunities . Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Entrepreneurial activities are substantially different depending on the type of organization that is being started. http:// en.wikipedia.org/wiki/Entrepreneurship

Entrepreneurship follows a process: Recognize the entrepreneur in you Identify a business opportunity Develop a business concept Identify and gather the resources needed Write a business plan Make economic/ financial forecasts Implement your project/ create your firm Manage your project/ firm Expand and develop the project or business Recognize ending time

Recognize the entrepreneur in you

Identify a business opportunity

Develop a business concept

Identify and gather the resources needed

Write a business plan

Make economic/ financial forecasts

Implement your project/ create your firm

Manage your project/ firm

Expand and develop the project or business

Recognize ending time

1. Recognize the entrepreneur in you The entrepreneur has an enthusiastic vision , the driving force of an enterprise. The entrepreneur's vision is usually supported by an interlocked collection of specific innovative ideas, not available in the marketplace. The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving. The entrepreneur promotes the vision with enthusiastic passion . With persistence and determination , the entrepreneur develops strategies to change the vision into reality. The entrepreneur takes the initial responsibility to cause a vision to become a success. Entrepreneurs take prudent risks . They assess costs , market/customer needs and persuade others to join and help. An entrepreneur is usually a positive thinker, a decision maker, a risk taker and a leader . Are you an entrepreneur? Take a test: http://www.fortytwodegrees.co.uk/issue-2/test.html

The entrepreneur has an enthusiastic vision , the driving force of an enterprise.

The entrepreneur's vision is usually supported by an interlocked collection of specific innovative ideas, not available in the marketplace.

The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving.

The entrepreneur promotes the vision with enthusiastic passion .

With persistence and determination , the entrepreneur develops strategies to change the vision into reality.

The entrepreneur takes the initial responsibility to cause a vision to become a success.

Entrepreneurs take prudent risks . They assess costs , market/customer needs and persuade others to join and help.

An entrepreneur is usually a positive thinker, a decision maker, a risk taker and a leader .

Are you an entrepreneur? Take a test: http://www.fortytwodegrees.co.uk/issue-2/test.html

2. Identify a business opportunity Explore society's change ( think about existing and possible new markets and products (services ) Be permanently curious and question actual solutions Be aware for new opportunities Be creative – quantity means quality (but remember: an idea it’s not necessarily an opportunity; test/ evaluate your ideas in terms of technical and financial feasibility)) Imitate creatively Forecast future needs Travel around - experience Read Talk with as many people you can Remember : you cannot create a need but you can wisely pick one; what makes an opportunity its the market: this can be the most longer and challenging phase.

Explore society's change ( think about existing and possible new markets and products (services )

Be permanently curious and question actual solutions

Be aware for new opportunities

Be creative – quantity means quality (but remember: an idea it’s not necessarily an opportunity; test/ evaluate your ideas in terms of technical and financial feasibility))

Imitate creatively

Forecast future needs

Travel around - experience

Read

Talk with as many people you can

Remember : you cannot create a need but you can wisely pick one; what makes an opportunity its the market: this can be the most longer and challenging phase.

3. Develop a business concept Define the business concept behind your idea Have you tested it? Make sure you found an opportunity: is there a market for your idea? Who will want to buy whatever you’re trying to sell? Find/ develop the product or service that best fits the opportunity envisaged and your vision Create a good and solid business concept Make it personal , emotional and sexy Consider creating a trade mark ( protect your idea) with powerful values – this will ease communication and customer retention) Remember competition

Define the business concept behind your idea

Have you tested it?

Make sure you found an opportunity: is there a market for your idea? Who will want to buy whatever you’re trying to sell?

Find/ develop the product or service that best fits the opportunity envisaged and your vision

Create a good and solid business concept

Make it personal , emotional and sexy

Consider creating a trade mark ( protect your idea) with powerful values – this will ease communication and customer retention)

Remember competition

4. Identify and gather the resources needed Plan into the future Human resources (identify carefully the competences you need to build your business idea; try to involve your friends and relatives , building a formal or informal team to act as a supporting net – entrepreneurship is definitely a collective phenomena Financial resources (family, friends and fools) Consider renting, subcontracting, borrowing, partnerships instead of buying Technology Physical resources …

Plan into the future

Human resources (identify carefully the competences you need to build your business idea; try to involve your friends and relatives , building a formal or informal team to act as a supporting net – entrepreneurship is definitely a collective phenomena

Financial resources (family, friends and fools)

Consider renting, subcontracting, borrowing, partnerships instead of buying

Technology

Physical resources

…

5. Write a business plan Business planning is about results : you need to make the contents of your plan match your purpose. A business plan works for a business to look ahead , allocate resources , focus on key points , and prepare for problems and opportunities . Keep an up-to-date business plan even after the business is running. Make your business model clear - the development of the business concept is a process that requires time and research Write it yourself instead of subcontracting anyone else A business plan has several targets : investors, potential partners, and, above all, the entrepreneur himself, to whom the plan will act as a guide into the future http://www.myownbusiness.org/s2/

Business planning is about results : you need to make the contents of your plan match your purpose.

A business plan works for a business to look ahead , allocate resources , focus on key points , and prepare for problems and opportunities . Keep an up-to-date business plan even after the business is running.

Make your business model clear - the development of the business concept is a process that requires time and research

Write it yourself instead of subcontracting anyone else

A business plan has several targets : investors, potential partners, and, above all, the entrepreneur himself, to whom the plan will act as a guide into the future

http://www.myownbusiness.org/s2/

A normal business plan (one that follows the advice of business experts) includes: Executive Summary : Write this last. It's just a page or two of highlights. Company Description : Legal establishment, history, start-up plans, etc. Product or Service : Describe what you're selling. Focus on customer benefits. Market Analysis : You need to know your market, customer needs, where they are, how to reach them, marketing mix ... Strategy and Implementation : Be specific. Include management responsibilities with dates and budget. Management Team : Include backgrounds of key members of the team, personnel strategy, and details. Financial Plan : Include profit and loss, cash flow, balance sheet, break-even analysis, assumptions, business ratios, etc. 5. Write a business plan

A normal business plan (one that follows the advice of business experts) includes:

Executive Summary : Write this last. It's just a page or two of highlights.

Company Description : Legal establishment, history, start-up plans, etc.

Product or Service : Describe what you're selling. Focus on customer benefits.

Market Analysis : You need to know your market, customer needs, where they are, how to reach them, marketing mix ...

Strategy and Implementation : Be specific. Include management responsibilities with dates and budget.

Management Team : Include backgrounds of key members of the team, personnel strategy, and details.

Financial Plan : Include profit and loss, cash flow, balance sheet, break-even analysis, assumptions, business ratios, etc.

6. Make economic/ financial forecasts Make financial forecasts to evaluate the profitability of the project Pay careful attention to investment and operation costs and cash flows Foresee self-financing needs ( under financing is a common problem during business creation) Be realistic and avoid excessive optimism Do not expect earns in short term Remember: you’ll always find unexpected expenses, so be cautious Find free software applications that will help trough this stage

Make financial forecasts to evaluate the profitability of the project

Pay careful attention to investment and operation costs and cash flows

Foresee self-financing needs ( under financing is a common problem during business creation)

Be realistic and avoid excessive optimism

Do not expect earns in short term

Remember: you’ll always find unexpected expenses, so be cautious

Find free software applications that will help trough this stage

7. Implement your project/ create your firm Take the needed steps and actions to start your project or business: Create the firm Develop your product or service – involve customers Gather the financial resources Find a team and train them Find the right partners Find the complementary services or goods Find a local Choose the technologies , tools and physical means and develop your competences Find the customers and advertise Start operations Attention you’re starting to shape your firms culture and values

Take the needed steps and actions to start your project or business:

Create the firm

Develop your product or service – involve customers

Gather the financial resources

Find a team and train them

Find the right partners

Find the complementary services or goods

Find a local

Choose the technologies , tools and physical means and develop your competences

Find the customers and advertise

Start operations

Attention you’re starting to shape your firms culture and values

8. Manage your project/ firm Does the entrepreneur want to be the manager? Define your management style (recognize your limitations and ask for help) Identify the critical success factors in your activity SWOT it Evaluate on-going (implement a control system, specially on operations and costs ) Think about efficiency , quality and sustainability Get feed-back from everybody you can Permanently refocus on the market Pro management (analyse historical data) Reinforce peoples competences and development Keep the initial enthusiasm Always seek creativity and innovation

Does the entrepreneur want to be the manager?

Define your management style (recognize your limitations and ask for help)

Identify the critical success factors in your activity

SWOT it

Evaluate on-going (implement a control system, specially on operations and costs )

Think about efficiency , quality and sustainability

Get feed-back from everybody you can

Permanently refocus on the market

Pro management (analyse historical data)

Reinforce peoples competences and development

Keep the initial enthusiasm

Always seek creativity and innovation

9. Expand and develop the project or business Keep informed about the market needs (clients, competition, partners, suppliers…) Draw future possible scenarios (expansion, growth, keep it small but beautiful, diversification, concentration, internationalisation Be flexible Embrace new challenges (controlled risks) Keep researching and learning Innovate – you’re clients expect it from you (keep surprising them)

Keep informed about the market needs (clients, competition, partners, suppliers…)

Draw future possible scenarios (expansion, growth, keep it small but beautiful, diversification, concentration, internationalisation

Be flexible

Embrace new challenges (controlled risks)

Keep researching and learning

Innovate – you’re clients expect it from you (keep surprising them)

10. Recognize ending time Recognize the time to end the project or abandon the market before it is to late Check costs, revenues, client satisfaction, market needs, team’s commitment… Remember: all projects have their life-time and must come to an end

Recognize the time to end the project or abandon the market before it is to late

Check costs, revenues, client satisfaction, market needs, team’s commitment…

Remember: all projects have their life-time and must come to an end

Summary Phase I: Discovery -- identifying opportunities and shaping them into business concepts; Phase II: Feasibility analysis and assessment; Phase III: Creating your business plan; Phase IV: Launching your business; Phase V: Growing your business; Phase VI: Exiting your business

Phase I: Discovery -- identifying opportunities and shaping them into business concepts;

Phase II: Feasibility analysis and assessment;

Phase III: Creating your business plan;

Phase IV: Launching your business;

Phase V: Growing your business;

Phase VI: Exiting your business

Tank you for your attention! [email_address] fugas-lusas.pt

Tank you for your attention! [email_address] fugas-lusas.pt