This document provides an overview of starting a small business. It outlines objectives like evaluating one's potential as an owner and understanding the concept of a feasibility study. Personal traits of successful entrepreneurs are described, like recognizing opportunities and being a hard worker. The document also discusses evaluating opportunities, developing a business plan, and identifying the managerial skills needed, such as conceptual, technical and interpersonal skills. Overall it serves as a guide for understanding the steps to starting a small business.

1. SBDE
Learning Unit 3
Starting Your Own Business

2. OBJECTIVES
• Explain how to assess your own potential as a small
business owner;
• Identify opportunities for small business development;
• Evaluate whether the opportunity is likely to be successful;
• Understand the concept of a feasibility study;
• Prepare a plan for each aspect such as marketing,
production, finance and staffing of the business;
• Explain the advantages and disadvantages of starting your
own business;
• Identify the managerial skills you will need to start your own
business;
• Understand how to obtain start-up cost savings.

3. PERSONALITY TRAITS
• The ability to recognise • Leadership skills;
and exploit opportunities; • A desire to achieve;
• Resourcefulness; • hard workers;
• Creativity; • Nurturing quality;
• Vision; • Accepting responsibility;
• Independent thought; • Reward-oriented;
• Energy; • Optimistic;
• Optimism; • Excellence-oriented;
• Innovativeness; • Good organisers;
• Calculated risk taking; • Money-oriented.

4. CHARACTERISTICS
• Commitment • Effective time
management
• Energy
• Ability to identify
• Need to Achieve
opportunities
• Tolerance for stress
• Make informed
• Decisiveness decisions
• Ability to deal with • Ability to manage risk
failure

5. HARD AND SOFT SKILLS
A “hard” skill is a technical or
administrative skill related to the core
business of the operation – not one
that is interpersonal.). These skills are
specific to a given context and
typically produce an immediate visible
result.

6. HARD AND SOFT SKILLS
“Soft” skills are a cluster of
personal attributes, which
enhance interactions with others,
and are learned over time; often
referred to as your emotional
intelligence (EQ).

7. EMOTIONAL INTELLIGENCE FOR
SMALL BUSINESS OWNERS
• The ability to perceive, • The ability to listen to
recognise, understand and others, to have empathy
react to the feelings of with them and to
yourself and those of communicate effectively in
others (emotional terms of emotions and
awareness). thoughts.
• The ability to distinguish • To use the information in
between various feelings directing your thoughts
and to name them and actions so that you
(emotional literacy). live effectively, are
• The ability to express and motivated and have a goal
control your feelings in mind (relation between
appropriately (emotional thoughts, feelings and
control). behaviour).

8. SELF AWARENESS
• Emotional self awareness
• Accurate self assessment
• Self confident

9. SELF - MANAGEMENT
• Self control
• Transparency
• Adaptability
• Achievement
• Initiative
• Optimism

10. SOCIAL AWARENESS
• Empathetic awareness
• Organisational awareness
• Service awareness

11. ASSESS OWN POTENTIAL
Need to ask yourself a series of
questions about:-
• Personal objectives
• Personal resources
• Clues from the past
• Your specialty

12. Individual Exercise
Self assessment questionaire

13. IDENTIFYING OPPORTUNITIES
Three aspects:-
Attractiveness of the opportunity
Durability – inherent ability to
continue
Timeliness – enter the market at
an appropriate or opportunistic
time

14. GENERATION OF IDEAS
• From skills, expertise and attitude
• From common needs
• From existing problems
• From everyday problems
• From other sources

15. EVALUATING OPPORTUNITIES
• A good opportunity will be:-
• Attractive
• Durable
• Timely
• Anchored in a product or service
USE INTERNAL & EXTERNAL
EVALUATION OF OPPORTUNITIES

16. INTERNAL
Will only be successful if owner has
internal capabilities to take opportunity
from idea to business
Need to assess:-
• Resources and capabilities
• Core competencies

17. EXTERNAL
Need to evaluate the general and
industry environment

18. GENERAL
5 SUB ENVIRONMENTS
• Political & legal environment
• Social cultural environment
• Macroeconomic environment
• Global environment
• Technological environment
CHALLENGE TO BUSINESS OWNER
BUT ARE UNCONTROLLABLE

19. INDUSTRY
Direct effect to the start up business
Porter 5 competitive forces
• Threat of new competitors
• Threat of substitute products or services
• Intensity of rivalry among existing
competitors
• Bargaining power of suppliers
• Bargaining power of buyers
P52/53 module manual

20. FEASIBILITY ANALYSIS
Feasibility:-
.. The extent to which an idea is
viable and realistic and the extent
to which the small business owner
is aware of internal and external
forces that could affect his/her
business

21. FEASIBILITY STUDY
Involves meticulous investigation of 5
primary areas:-
• The overall business idea
• The product/service
• The industry and market
• Financial projections (profitability)
• The plan for future action

22. FEASIBITY CHECKLIST
Must take into consideration the following important
factors:-
• Size of market
• Growth potential of market
• Products and services the market needs
• Why the market wants these products and services
• How often these customers buy these products and
services
• What the geographic distribution of the market is
• What price the market is willing to pay
• What market share can be expected
• How to communicate effectively with the market

23. INDIVIDUAL ACTIVITY
ICE TASK 3
Prepare a feasibility plan as per the template
on page 54/55/56/57 for your proposed
business. You will need to do some in depth
research in order to specifically answer the
feasibility checklist questions on p57 of the
module manual. This will enable you to
prepare a more accurate and detailed study.
Plan must be typewritten. Hand in date: 4th
September 2012

24. ASSESSMENT OF OPPORTUNITY
Goal of feasibility study is to systematically assess the
opportunity to determine if it can be brought to market
profitably
KEY POINTS
• The idea cannot be economically made into a
product or service
• The product and/or service works but does not
appeal to a large enough market to be viable
• The product and/or service works, there is a
viable market, but resources are not sufficient or
obtainable to make the idea into a business

25. BUSINESS PLANS
ARE NECESSARY!!!!!!!
• To raise finance as and when necessary (to
start, buy or expand)
• To encourage assistance, to get a lease, to
open an account etc.
• To improve performance (and likelihood of
success) through increased knowledge and
understanding – use to assess performance
against plan, evaluate strengths and
weaknesses etc.

26. SCOPE OF BUSINESS PLAN
• Contents
• Exec Summary
• Vision & Mission
• Company Overview
• Product or Service
• Marketing Plan
• Management Plan
• Operating Plan
• Financial Plan

27. GROUP EXERCISE
Get into groups of 2
Take the section headings from previous slide
and write bullet points on each section on what
should be included in it . DO NOT REFER TO
YOUR MODULE MANUAL!

28. ADVANTAGES OF STARTING YOUR
OWN BUSINESS
• Opportunity to start fresh
• Start with latest technology
• Be able to provide products or services
not currently available in the market
place
• Owner can determine size of business

29. DISADVANTAGES OF STARTING
YOUR OWN BUSINESS
• No known name in market place
• Time needed to establish a positive
cashflow
• May be difficult to obtain initial funding –
no assets or reputation
• Recruitment of experienced staff may be
difficult

30. MANAGERIAL SKILLS
Three key areas:-
• Conceptual
• Technical
• Interpersonal or human skills

31. CONCEPTUAL
Ability to see small business as a whole
• Recognise how functions are interdependent
• Visualise relationship of the small business to
the industry and community it is operating in
• Understand the effects of political, economic
and social forces of the nation on the small
business

32. TECHNICAL
• Implies an understanding and proficiency
in a specific kind of activity
• Involves methods, processes,
procedures or techniques
• Specialist knowledge, analytical ability
and knowledge of use of specialist tools

33. INTERPERSONAL SKILLS
Ability to manage people
Ability to network
Ability to communicate at all levels etc.

34. START UP COST SAVINGS
5 AREAS IN THE START UP PROCESS
WHERE SAVINGS ARE POSSIBLE:-
• Franchise company fees
• Turnkey packages
• Construction costs
• Equipment signs and fixtures
• Lease terms

35. INDIVIDUAL EXERCISE
Revision questions p 63 Module Manual

36. Useful Clipart and Images

37. AHEAD
of the
CURVE
An Animated
PowerPoint Template

38. AHEAD
of the
CURVE
An Animated
PowerPoint Template

39. Static Content Slide
Static Layout.

40. Animated or Static?
Change Between Static and
Animated
You can change between static
and animated layouts by
clicking on the Layout tab in the
HOME menu on the ribbon.
For example this slide uses
the static layout.

41. Alternate Content Page
Printable Slide Layout
An alternate content page with a printable background
color.

42. Bulleted Content Page
• This Layout Page has bullets
– And Indented Levels
• Level 3 Text Placeholder
– Level 4 Place Holder
» Level 5 Place Holder

43. Agenda or Summary Layout
Phase 1 Discussion Item One – Phase 1
A Placeholder for text
Phase 2 Discussion Item Two – Phase 2
A Placeholder for text
Phase 3 Discussion Item Three – Phase 3
A Placeholder for text
Discussion Item Four – Phase 4
Phase 4 A Placeholder for text

44. Two Picture Page Layout
• A placeholder for text for the
first picture
• More information can
be added here by
changing this text.
• A placeholder for the second
picture
• More information can
be added here by
changing this text.
• Make changes to this
text.

45. Three Picture Page Layout
• A description of • A description of • A description of
the first picture. the second the third picture.
You may change picture. You may You may change
this text. change this text. this text.
• A description of • A description of • A description of
the first picture. the second the third picture.
You may change picture. You may You may change
this text. change this text. this text.

46. Table Page Geographic Q1 Q2 Q3 Q4
Layout Region
Here is the description of the
table. You may change or United States 1254 1873 1015 2284
delete this text as you wish.
Europe and 324 310 300 419
This chart is compatible with Asia
PowerPoint 97 to 2007. Australia 15 18 13 20
Here is a placeholder for more Canada 6 3 4 7
text and description of the
chart. Changing this text will Mexico 1 .5 .5 2
not interfere with the formatting
of this template.
TOTALS 1600 2205 1333 2732

47. Comparison Table Layout
Quarter North Asia Europe Austr Quarter North Asia Europe Austra
America alia America lia
Q1 2009 123 34 45 10 Q1 2009 123 34 45 10
Q2 2009 134 35 44 12 Q2 2009 134 35 44 12
Q3 2009 150 45 50 14 Q3 2009 150 45 50 14
Q4 2009 201 55 60 18 Q4 2009 201 55 60 18
Q1 2010 175 44 47 13 Q1 2010 175 44 47 13
Q2 2010 180 48 52 14 Q2 2010 180 48 52
Q3 2010 204 55 60 16 Q3 2010 204 55 60
Q4 2010 250 62 70 20 Q4 2010 250 62 70
Here is the description of the table. You may change or delete this text as
you wish. This table is compatible with PowerPoint 97 to 2007.

48. Chart Title
Bar Graph Page Series 1 Series 2 Series 3
Layout
Here is the description of the 5
chart. You may change or 4.5
delete this text as you wish. 4.3 4.4
This chart is compatible with 3.5
PowerPoint 97 to 2007. 3
2.8
2.4 2.5
Here is a placeholder for more
text and description of the 2 2
1.8
chart. Changing this text will
not interfere with the formatting
of this template.

49. Chart Title
Pie Graph Page
Layout
4th Qtr
Here is the description of the 9%
chart. You may change or
delete this text as you wish.
3rd Qtr
10%
This chart is compatible with
PowerPoint 97 to 2007.
Here is a placeholder for more 1st Qtr
text and description of the 58%
chart. Changing this text will 2nd Qtr
not interfere with the formatting
of this template.
23%

50. Chart Title
Bar Graph Page Series 1 Series 2 Series 3
Layout
Here is the description of the
chart. You may change or 5
delete this text as you wish.
4.5
4
This chart utilizes features only
3.5
available with 2007.
3
2.5
Here is a placeholder for more
text and description of the 2
chart. Changing this text will 1.5
not interfere with the formatting 1
of this template. 0.5
0

51. Pie Graph Page Chart Title
Layout
Here is the description of the
chart. You may change or 58%
delete this text as you wish.
This chart utilizes features only
available with 2007. 23%
9% 10%
Here is a placeholder for more
text and description of the
chart. Changing this text will
not interfere with the formatting
of this template.
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

52. Smart Art Page
Layout
This chart utilizes Smart Art
which is feature in PowerPoint
2007. If you wish to make
charts like this and don’t have
PPT 2007, we have provided
the graphical elements to help Stage 1
you build this yourself.
Here is the description of the
chart. You may change or
delete this text as you wish.
Here is a placeholder for more
text and description of the
chart. Changing this text will
not interfere with the formatting
of this template.

53. Smart Art Page
Layout
This chart utilizes Smart Art Area 1 Area 2
which is feature in PowerPoint
2007. If you wish to make
charts like this and don’t have
PPT 2007, we have provided
the graphical elements to help
you build this yourself.
Here is the description of the
chart. You may change or
delete this text as you wish.
Here is a placeholder for more
text and description of the
chart. Changing this text will
not interfere with the formatting
of this template.

54. Process 2
Smart Art Page A placeholder
Layout for text for
more
This chart utilizes Smart Art
information
which is feature in PowerPoint Process 1
2007. If you wish to make A placeholder
charts like this and don’t have
PPT 2007, we have provided
for text for
the graphical elements to help more
you build this yourself. information Process 3
A placeholder
Here is the description of the for text for
chart. You may change or more
delete this text as you wish. information
Process 4
A placeholder
for text for
more
information

55. Picture Page Layout
Here is a place holder for the picture caption. You may delete this
text.

56. Questions?
More
Information?
PresenterMedia.com
support@presentermedia.com
4416 S. Technology Dr
Sioux Falls, SD 57106