This document provides an overview of nutripreneurship and how to develop a successful business idea in the nutrition field. It discusses defining nutripreneurship and identifying personal strengths for entrepreneurship. The key aspects of a good business idea are defining products/services, the target market, competitors, required resources, and next steps. Developing a strong business idea is the first step towards starting a successful nutrition business.

1. Nutrepreneurship
Training Manual
Nutrition as a business
A piece of work that borrows from the school of business and
entrepreneurship. A manual derived from other piece of
work and hence not for sale.
By Millan Ochieng Otieno

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Contents
Module 1:................................................................................................................................................4
Defining the concept ...............................................................................................................................4
Identifying the personal strengths .......................................................................................................4
Entrepreneur ......................................................................................................................................5
Qualities of an entrepreneur ...............................................................................................................7
 Self-Esteem................................................................................................................................10
 Need to Achieve.........................................................................................................................10
 Screening For Opportunity.........................................................................................................10
 Locus of Control.........................................................................................................................10
 Goal Driven................................................................................................................................10
 Optimism...................................................................................................................................10
 Courage.....................................................................................................................................10
 Tolerance to Ambiguity..............................................................................................................10
 Strong Internal Motivation—The “Fire Inside”............................................................................10
Module 2:..............................................................................................................................................11
Turning your idea into a successful business idea!.................................................................................11
A good business idea needs to define: ...............................................................................................11
1. Your Products and Services ........................................................................................................11
2. Define the Market......................................................................................................................11
3. Define Main Competitors...........................................................................................................11
4. Define Resources .......................................................................................................................11
5. And what’s next.........................................................................................................................11
A successful business meets the needs of its customers. It gives people what they need or want. Your
business idea will tell you; .................................................................................................................12
 Which need your business will fulfill for its customers. ..............................................................12

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 What product or service your business will sell..........................................................................12
 Who your business will sell to....................................................................................................12
 How your business is going to sell its products or services. ........................................................12
WHAT MAKES A GOOD BUSINESS IDEA..............................................................................................12
A good business idea is one that is based on;.....................................................................................12
o A product or service that customers want..................................................................................12
o A product or service you can sell at a price customers can afford and which will give you a profit
12
o The knowledge of skills you have or you can get ........................................................................12
o The resources and money you are able to invest........................................................................12
All good businesses begin with a good idea that has been well thought through................................12
Module 3:..............................................................................................................................................16
Writing a business plan for your successful idea ....................................................................................16
Section 1: MARKET ANALYSIS.........................................................................................................17
Section 2: Financial analysis...........................................................................................................19
Section 3: Realistic planning...........................................................................................................22
Module 5:..............................................................................................................................................24
Marketing..............................................................................................................................................24
Module 6:..............................................................................................................................................27
Costing and Pricing................................................................................................................................27
Module 7:..............................................................................................................................................29
Operational management......................................................................................................................29
Module8:...............................................................................................................................................30
Record keeping......................................................................................................................................30
Module 9...............................................................................................................................................31
Savings, Risk and Transition...................................................................................................................31

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Module 1:
Defining the concept
The word “Entrepreneurship” is derived from the French verb entreprendre which means “to
undertake”. The term entrepreneurship thus refers to the following:
• The process of identifying opportunities in the market place, arranging the resources required to
pursue these opportunities and investing the resources to exploit the opportunities for long term gains.
It involves creating wealth by bringing together resources in new ways to start and operate an
enterprise.
• The processes through which individuals become aware of business ownership then develop ideas for,
and initiate a business.
• “The art of identifying viable business opportunities and mobilising resources to convert those
opportunities into a successful enterprise through creativity, innovation, risktaking and progressive
imagination” ...ILO Youth Entrepreneurship Manual, 2009
Entrepreneurship is a practise and a process that results in creativity, innovation and enterprise
development and growth. It refers to an individual’s ability to turn ideas into action involving and
engaging in socially-useful wealth creation through application of innovative thinking and execution to
meet consumer needs, using one’s own labour, time and ideas. Engaging in entrepreneurship shifts
people from being “job seekers” to “job creators”, which is critical in countries that have high levels of
unemployment. It requires a lot of creativity which is the driving force behind innovation.
Entrepreneurship is the process of starting a business or other organization. The entrepreneur develops
a business plan, acquires the human and other required resources, and is fully responsible for its success
or failure. The capacity and willingness to develop organize and manage a business venture along with
any of its risks in order to make a profit.
Intrapreneurship is a relatively recent concept that focuses on employees of a business that have many
of the attributes of entrepreneurs. An intrapreneur is someone within a business that takes risks in an
effort to solve a given problem.
Nutrition is the science that interprets the interaction of nutrients and other substances in food in
relation to maintenance, growth, reproduction, health and disease of an organism.
A nutritionist is a person who advises on matters of food and nutrition impacts on health.
Nutripreneurship is the practice and process that results in creativity, innovation, development and
growth of nutrition businesses.
Identifying the personal strengths

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Who is an entrepreneur?
Entrepreneur is an individual who, rather than working as an employee, runs a small business and
assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The
entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.
Nutripreneurs are nutritionists innovators who use a process of changing the current situation of the
existing products and services, to set up new products and new services.
An individual who:
 Has the ability to identify and pursue a business opportunity;
 Undertakes a business venture;
 Raises the capital to finance it;
 Gathers the necessary physical, financial and human resources needed to operate the business
venture;
 Sets goals for him/herself and others;
 Initiates appropriate action to ensure success; and
 Assumes all or a major portion of the risk!
The five major personal strengths characterizing a successful entrepreneur are:
a) Have a positive attitude.
b) Possess strong leadership skills.
c) Have a decision-making ability.
d) Be a results-oriented problem solver.
e) Address the ‘Am I good enough?’ syndrome.
“Characteristics of Successful Entrepreneurship”
 Be associated with other individuals
 Have a good idea for a business
 Commit yourself to efficient management practices
 Have good relations with other individuals
 Be able to find financing
 Work in group settings
 Have a good place to practice business
 Research people who can help the business start up
 Be willing to share with others
Pillars of entrepreneurship success
What makes a successful entrepreneur?
1. An idea and market

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2. Skills/knowledge and experience
3. Resources
4. Motivation and hard work
Successful entrepreneurs have these four attributes. Without any of them, your business will be
unstable.
Qualities of an entrepreneur
1. Opportunity-seeking
2. Persevering
3. Risk Taking
4. Demanding for efficiency and quality
5. Information-seeking
6. Goal setting
7. Planning
8. Persuasion and networking
9. Building self-confidence
10. Listening to others
11. Demonstrating leadership

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Qualities of an entrepreneur
Opportunity seeker
Business Opportunity Seekers are in constant search of the latest, most effective money making
opportunities. An Opportunity Seeker Is a person that pursues an established opportunity. People who
wait for the government to change or for the weather to first become fair do not make it far as
entrepreneurs. There are millions of opportunities around us but what are usually lacking are people
who take initiative to transform these opportunities into profitable business ventures. Opportunity
seekers do not sit around and wait to be told or forced by events to act. Seek opportunities.
Persevering
Persevere is to continue in a course of action even in the face of difficulty or with little or no prospect of
success. Every entrepreneur will face obstacles, ranging from lack of finance, lack of belief by customers
to comments of “you are going to fail like others before did.” The successful entrepreneur is determined
in the face of serious challenges and obstacles. This is the quality, which enables the entrepreneurs to
develop determination to have a thorough job done at any cost in terms of personal sacrifice. By doing
this, the entrepreneur remains working towards the achievement of his/her set goals. Entrepreneurs
need to be able to deal with obstacles. A business does not get built overnight, and turning your idea
into a reality will take time. You'll have to become accustomed to people saying no to you. What makes
entrepreneurs great is having the perseverance to grow regardless of how many times they are shut
down. Be determined.
Risk Taking
RISK–TAKING is the act or fact of doing something that involves danger or risk in order to achieve a goal.
Entrepreneurs are people who prefer taking moderate risks. Before they commit themselves and their
resources, they assess the risks that are associated with a business opportunity that they have selected,
and their ability to manage them, the benefits that they will realise and the challenges that they will face
from the venture to be undertaken.
Entrepreneurs can earn profits as a result of taking risks and the higher the risks, the higher the profits.
However, entrepreneurs will always prefer to take on those risks that they can manage.
Starting any business can be risky. As an entrepreneur, you should be able to take risks and realize that
mistakes happen. If your gut is telling you to sign a contract with a new client, then you should be willing
to take the chance regardless of the outcome. When making a major decision regarding your business,
ask yourself the three questions listed below:
 Will this decision be an asset for my business--financially or professionally?
 What will be the long-term results due to this decision?
 Does the rest of my team (staff, board of directors, investors) agree with this decision?

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Remember, mistakes and setbacks are a part of growing a business. Do not become discouraged
because a business deal didn't go as planned or your decision resulted in challenges for your business.
Through trials and tribulations, entrepreneurs learn from their mistakes which can lead to having a more
successful business.
1. Demanding for efficiency and quality
Efficiency is the state or quality of being efficient, or able to accomplish something with the least waste
of time and effort; competency in performance. Quality is the
character with respect to fineness, or grade of excellence. This is the quality that enables an
entrepreneur to do things that meet or surpass existing standards of excellence or improve on
performance by striving to do things faster, better and cheaply. By doing this, the entrepreneur remains
ahead of others, makes more profits and retains a growing market share. Be consistent in your worth of
skills and knowledge.
2. Information-seeking
Information seeking is the process or activity of attempting to obtain information in both human and
technological contexts. Information seeking has been viewed as a cognitive exercise, as a social and
cultural exchange, as discrete strategies applied when confronting uncertainty, and as a basic condition
of humanity in which all individuals exist. Information is power. An entrepreneur is always in search of
new ideas and informations from various sources to help reach objectives or clarify problems. He can
consult experts for business or technical advice. He personally undertakes research, analysis or
investigation on his own to get information in realising his goals.
3. Goal setting
Goal setting involves the development of an action plan designed to motivate and guide a person or
group toward a goal. This refers to the ability of an entrepreneur to set clear and specific goals and
objectives. These goals and objectives are normally high and challenging but at the same time, realistic
and can be attained, given the resources that one has got at his/her disposal.Many people think sweet
talking is an important attribute of successful entrepreneurs. The ability to always do what the
entrepreneur said they will do is more important than being a sweet talker. At times, it takes great
personal sacrifice such as spending more time on the job or losing some of your profit in order to satisfy
a customer. Fulfil your commitments no matter what. Perhaps the most important trait is that of setting
goals. You should have a clear idea of how your life and your business will look like in the short and long
term.
4. Systematic Planning
Planning (also called forethought) is the process of thinking about and organizing the activities required
to achieve a desired goal. Entrepreneurs develop and use logical, step-by-step, realistic and proper plans
to accomplish their goals. They believe in systematic planning and its proper execution to reach goals.
Planning every aspect of your business is not only a must, but also builds habits that every business
owner should develop, implement, and maintain. Successful entrepreneurs are systematic planners.
They decide what they are going to do in an orderly and logical way. You have to get used to breaking
large tasks into sub tasks with clear time frames. Keep financial records and use them to make decisions.
Engage in systematic planning.

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5. Persuasion and networking
Persuasion is something meant to get you to do or believe something or the process of guiding people
and oneself toward the adoption of an idea. Network is to interact with other people to exchange
information and develop contacts, especially to further one's career. It’s nearly impossible to succeed
without people to help you. Nobody can do everything on their own, and being friendly and helpful is
one of the most important traits for a young entrepreneur to have. Without the ability to network and
work with people, you won’t be able to develop the connections that you need to get the places you
want to go. Remember that humility is a virtue, and connecting with people is a skill that lasts for your
entire career. Entrepreneurs should enjoy meeting people especially for networking, speaking at
business seminars and increasing sales.
6. Building self-confidence
This is a feeling of trust in one's abilities, qualities, and judgment. Contrary to popular daydreams, being
your own boss does not equal sleeping in till noon and taking endless vacation days—at least not if you
want to run a business that has any chance of success. When you’re the only one peering over your
shoulder, you need to be able to keep yourself on task in the face of distractions, challenges, and the
tempting knowledge that you can technically do whatever you want, whenever you want, without
getting in any immediate trouble. You have to be able to look at the big picture and realize that cutting
corners now will only hurt you down the road.
7. Listening to others
Listening is paying attention keenly to what others say. Entrepreneurs need to listen more and talk less.
Listen as though the other person is about to reveal a great secret or the winning lottery number and
you will hear it only once. Since you always pay attention to what you most value, when you pay close
attention to another person, you tell that person that they are of great value to you. You will be
remembered. When you are not presenting to investors or your team, try to spend more time listening
than talking. You can’t learn anything new while you’re talking, yet many entrepreneurs seem to never
stop. It’s a sad spiral, since the more you talk, the less people really hear, meaning they don’t learn
anything either

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8. Demonstrating leadership
Leadership is having a compelling vision for the future. Certain leadership characteristics allow leaders,
especially entrepreneurs, to experience greater success. A leader is someone who values the goal over
any unpleasantness the work it takes to get there may bring. But a leader is more than just tenacious. A
leader has strong communication skills and the ability to amass a team of people toward a common goal
in a way that the entire team is motivated and works effectively to get there as a team. A leader earns
the trust and respect of his team by demonstrating postive work qualities and confidence, then fostering
an environment that proliferates these values throught the team. A leader who nobody will follow is not
a leader of anything at all.
Characteristics:
 Self-Esteem
 Need to Achieve
 Screening For Opportunity
 Locus of Control
 Goal Driven
 Optimism
 Courage
 Tolerance to Ambiguity
 Strong Internal Motivation—The “Fire Inside”

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Module 2:
Turning your idea into a successful business idea!
What is a business idea?
Every business is born from an idea. A business idea is a concept which can be used for commercial
purposes. It typically centers on a commodity or service that can be sold for money, according to a
unique model. .A business thought or collection of thoughts that generate in the mind. An idea is usually
generated with intent, but can also be created unintentionally.
An business idea is a starting point for any current or future entrepreneurs. It’s important because
present the beginning of a new life – a life of a business and a life of an entrepreneur. The meaning of
the business idea we will simply tell that business idea is the solution of the market problem.
Because of that as the most important things that every business idea must have are:
1. Problem.
2. Desire.
3. Small chance that problem will be solved.
A good
business idea needs to define:
1. Your Products and Services
2. Define the Market
3. Define Main Competitors
4. Define Resources
5. And what’s next

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A successful business meets the needs of its customers. It gives people what they need or want. Your
business idea will tell you;
 Which need your business will fulfill for its customers.
 What product or service your business will sell.
 Who your business will sell to
 How your business is going to sell its products or services.
WHAT MAKES A GOOD BUSINESS IDEA
A good business idea is one that is based on;
o A product or service that customers want
o A product or service you can sell at a price customers can afford and which will give you a profit
o The knowledge of skills you have or you can get
o The resources and money you are able to invest.
All good businesses begin with a good idea that has been well thought through.
Five steps for a successful good business idea.
a) Step 1: Make a business choice
Ask yourself the following questions;
- What products or services do people need (clothing, food stuffs, soap, etc.)?
- What products or services do people want (candy, toys, make-up, hair products, etc.)? (Products
that people desire- and do not need- are still appealing to the entrepreneur.)
- What products and services are not available in the community? (If a product is unavailable this
does not mean a demand for it does not exist.)
- What products/services have you observed in another community that do not exist here?
- What products consumed in this community come from another community?
- How far do people travel for the products/services they want?
- What are sources of frustration in your community?
- What are some factors and personal skills you’ll need to consider before starting the business
you have chosen?

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The above questions can be summarized into;
 Practical aptitude: Am I capable of producing the products and (or) services of my business? If
not, where will I find the necessary training?
 Psychological aptitude: Am I determined to progress, take risks, remain motivated, make
decisions, and maintain a healthy family situation?
 Financial situation: Do I have my own funds to start my business? Am I ready to invest them
into my business? Are there other sources of financing? (i.e. bank, family, friends, co-workers?)
(Note: If the business idea is too big for the available financial resources, is there a way to start
off smaller, and grow the business over time?)
b) Step 2: Conduct market research
Find out if other businesses sell your product:
 Where?
 How many?
 How are they organized?
Ask: If other businesses sell similar product(s)/service(s), why might a customer buy from you
instead? How can you be different?
c) Step 3: Define business operations and the three costs
o Business operations;
Ask: What are some expenses/costs you would come across in running your business?
 Emphasize that facility costs, rent, electricity, and water are oftentimes overlooked but
are actually an important part of almost any business operation
- What type of facility is necessary to house your business?
- What materials do you need to produce your product/service?
- Who will do what to make the product/service? How many people are involved?
- Does the product require packaging? What kind?
- What transportation do you need to move your materials and/or to sell your product?
- If applicable, how many items will you make in one production cycle?
o Three costs;
Types of Costs :
1. Start-up Costs
To start my business, will I need or have…
- Machinery or equipment
- Construction costs?
- Furniture required starting up my business (tables, chairs, pens, pencils, desks,
notebooks, paintings, a generator, etc...)?
- Legal demands
- Initial marketing costs?
2. Direct Costs
- What direct costs change according to the volume of production/service eg
transport, parkaging etc?
3. Indirect Costs
- What indirect costs are the required administrative costs to make the business
function eg salary?

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d) Step 4: Calculate the cost per unit, determine the selling price, and estimate sales income.
Obtain wholesale prices for your product material(s) by asking for price quotes from several
wholesalers. Do not settle for one price.
Direct Costs per Unit + Indirect Costs per Unit = Total Cost per Unit
Why calculate the unit cost?
1. To establish your prices.
If you know the total of your costs, you can then establish your selling prices to obtain a
profit.
2. To minimize and control your expenses.
If you know all of your costs, you will be able to find the best means of producing and selling
your goods and services.
3. To make better decisions concerning your business.
Knowing the costs of each of your products or services in detail will help you make better
sales decisions in order to obtain a sufficient profit.
4. To plan. Knowing the details of all of your costs well will help you plan.
For example, you need to know all of your costs before being able to plan your sales and
costs or your liquidity flow.
- Explain that in order to determine the selling price you have to speak with potential
customers, study your competition and consider the calculated cost, determining the selling
price for each product.
- Also consider, how much do you expect/ hope to earn in a month through your business?
Six months? A year? Write down the following points and explain their significance:
- When speaking with potential customers, what is an acceptable price level for your product
or service from your point of view?
- When considering your competition:
o What are your competitors’ prices?
o If your price is higher than your competitors, why will the client buy from you?
e) Step 5: Decide if the business is a good idea
 S.W.O.T. Analysis:
- Finish a S.W.O.T. Analysis. (STREANGTH, WEAKNESS, OPPORTUNITIES AND
THREATS)
- Fill in a Business Idea Checklist.
- Based on the S.W.O.T. analysis and results of the Business Idea Checklist, decide
whether or not you want to continue with the business.
ANALYSE YOUR BUSINESS IDEAS AND SELECT THE BEST ONE
Begin an ideas list for your own business.
Ideas list for my own business
Idea Description

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In Summary:
Go through your list of business ideas and make notes about each by answering these questions:
Which
o Which customer needs do you want to satisfy?
o Which customer needs will your product or service satisfy?
What
o What product or service do your customers want?
o What quality of the product do your customers want?
o What do you know about the product or service for this business?
Who
o Who are your likely customers for this particular business? Will they be enough in
number to keep your business viable?
o Who are your competitors?
How
o How will you be able to supply goods and services the customers want?
o How much do you know about the quality of goods and services the customers want?
o How does running this sort of business suit your personal characteristics and abilities?
o How do you know there is need for this business in your area?
o How do you imagine yourself running this business in ten years’ time?
The steps to be taken by the entrepreneur to turn his/her idea into a successful business idea
1. Observe trends
2. Solving a problem
3. Protect your idea
4. Conduct marketing research
5. Conduct a feasibility analysis
Points to remember
1. This new idea [product/ service] should have a relative advantage over existing
products/services. For example, your product/ service offers your customer something that the
existing products/services do not.
2. This idea or the advantage it offers over existing products/ services must be compatible with
existing attitudes and beliefs of customers, in that it should not require a drastic change in the
buyer’s behavior.
3. The idea should NOT be so complex that the buyer has a difficult time understanding how to use
it.
4. The results or benefits of the idea must be easily communicable to customers and potential
users.
5. It would be helpful if customers and potential users can try out this idea without incurring a
large risk. e.g. the distribution of samples, or trial users, would allow potential buyers to use this
new product/service without risking a purchase.
6. This idea [product/service] must be readily available for purchase once the buyer decides to
make a purchase.
7. The buyer must also believe that this new idea [product/ service] satisfies one of his/her needs
by giving some immediate benefit.

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Guide to ensure a service idea success
 Identify, define and describe your service
 Establish a rationale and implementation plan
 Establish fees and charges based on expertise, quality and services
 Become a preferred provider. Reinvent the wheel
 Remind your patients to have referrals in writing to compare note
 Code your services for identification
 Document effectiveness of your services
 Trade whether you and your clients get value for money and time.
Module 3:
Writing a business plan for your successful idea
Definition: A business plan is a written summary of your proposed business. It includes information
about the plans, operations and financial details, its marked opportunities and strategies, as well as the
entrepreneur’s personal background. It is a written document that describes in detail how a
new business is going to achieve its goals. A business plan will lay out a written plan from a marketing,
financial and operational viewpoint. Business plans are inherently strategic.
A business plan has two essential functions:
a] First and more important, it guides the business’s operations by charting its future course and
devising a strategy for following it.
b] The second function of the business plan is to attract lenders and investors.
Why business planning is necessary
o Business plans show you if the business can expect to make a profit in the future. It
shows what money to expect to come into and out of the business. For instance, if your
costs are expected to be high, there would be need to increase prices.
o A plan will be able to identify parts of the business that require improvement. In so
doing, one will be forced to think about every part of the business. To work out a plan,
one must therefore think carefully about everything that affects the business.
o A business plan makes it possible to access a bank loan because most banks are
interested in knowing the expected sales, costs and anticipated profits as well as cash
flows before offering a loan.
o It forces you to think deeply and plan every detail properly before you start your
business.
o It helps you to determine the direction you want to move in.
o A business plan serves as a map against which you can determine your process.
o A business plan provides details of resources required and can be given to potential
investors/financiers.
o A business plan indicates chances for success and potential critical points.

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We have discussed the following in module 2 above.
Checklist for business plan: think about the following issues (not an exhaustive list).
a. The product
- Why would customers buy the product/service?
- Are the product specifications clear and acceptable?
b. The market
- Geographical description of the business location
- Is there local demand for the product and if not, how can it be created?
- Who are the big competitors, how can you counteract them and their influence?
- How many competitors does the business have? If they are many, your market share is low,
which means that aggressive promotion is necessary to ensure visibility.
- Does your product need publicity and if so, what expenses would that incur?
- What is the trend in the selling price? Is there any seasonality?
c. Technical factors
- Have you selected all the necessary equipment? What are your reasons for this selection?
- If you buy machinery, check if you have a guarantee and if after sales service is included.
- Do you know where to source the equipment from? Who is the supplier?
- Do you have the necessary skills and if not, where can you get them?
d. Infrastructure
- Is the working/selling space adequate for your business operation to function?
- Are ownership/tenancy documents for the land/shop/workshop in order?
- If water is required for your business to operate, is it available close by?
- Do you have/need a supply of electricity?
- Is transport of raw materials or finished goods a critical factor and if so, how do you plan to
handle it while minimizing costs?
- Do you need to register your business? What are the legal requirements?
e. Financial analysis
- Have you done financial calculations of needed costs, resources, income etc?
- Have all the costs of production been included in your calculations?
- Does the business generate enough cash from the beginning so as to meet immediate liabilities
(e.g. rent, loan repayment).
- Check your cash flow projections. Are they realistic?
- Check all estimates of capital required as well as running costs.
Section 1: MARKET ANALYSIS
A market is an area or arena in which commercial dealings are conducted. A medium that allows
buyers and sellers of a specific good or service to interact in order to facilitate an exchange. The
price that individuals pay during the transaction may be determined by a number of factors, but
price is often determined by the forces of supply and demand. Markets do not necessarily need
to be a physical meeting place. Internet-based stores and auction sites are all markets in which
transactions can take place entirely online and where the two parties do not ever need to
physically meet.
A product is the item offered for sale. A product can be a service or an item. It can be physical or
in virtual.

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Definition of service: A type of economic activity that is intangible is not stored and does not
result in ownership - (Intangible products).
Market research is the action or activity of gathering information about consumers' needs and
preferences. The process of gathering, analyzing and interpreting information about a market,
about a product or service to be offered for sale in that market, and about the past, present and
potential customers for the product or service; research into the characteristics, spending habits,
location and needs of your business's target market, the industry as a whole, and the particular
competitors you face .
Market research is a systematic, objective collection and analysis of data about a particular
target market, competition, and/or environment, often conducted as the first step in identifying
the viability of business ideas.
Why do market research?
The goal of doing market research is to equip yourself with the information you need to make informed
business decisions about start-up, innovation, growth and the 4 P's:
Product — Improve your product or service based on findings about what your customers really
want and need. Focus on things like function, appearance and customer service or warranties.
Price — Set a price based on popular profit margins, competitors' prices, financing options or the
price a customer is willing to pay.
Placement — Decide where to set up and how to distribute a product. Compare the
characteristics of different locations and the value of points of sale (retail, wholesale, online).
Promotion — Figure out how to best reach particular market segments (teens, families, students,
professionals, etc.) in areas of advertising and publicity, social media, and branding.
How to do market research
1. Primary research for primary data
 Who are my customers and how can I reach them?
o Customer profiles
o Prospective business locations
o Marketing strategies
 Which products and services do buyers need or want?
 What factors influence the buying decisions of my customers?
o Price, service, convenience, branding, etc.
 What prices should I set for my products and services?
o Customer expectations
 Who are my competitors, how do they operate and what are their strengths and weaknesses?

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2. Secondary research for secondary data
 What are the current economic conditions that my business is operating in? Are these
conditions changing?
o International, national, provincial and local economic conditions
 What trends are influencing the industry my business operates in?
o Consumer preferences
o Technological shifts
o Prices for goods and services
 Are there international markets for my products or services that could help me to grow my
business?
 What are the demographic characteristics of my customers or where do they live?
o Populations, age groups, income levels, etc.
 What is the state of the labour market?
o How many people have the skills I require?
o How much should I expect to pay my employees?
You can divide the above insight into;
 Your market
- What are the key demographics of your market (e.g. age, gender, etc.)?
- How will your entrance affect the market/customers?
- Does the region where you operate have a stable economy?
 Your customers
- Who are your target customers and how do they behave?
- Where are they located?
- What’s the profile of an ideal customer for your business?
 Your competitors
- What’s the profile of a typical competitor for your business?
- What are your competitors' main strengths?
- What are your competitors' main weaknesses?
Section 2: Financial analysis
Financial analysis (also referred to as financial statement analysis or
accounting analysis or Analysis of finance) refers to an assessment of the viability, stability and
profitability of a business, sub-business or project.

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Budget
A 'Budget' is an estimation of the revenue and expenses over a specified future period of time. It is an
estimate of income and expenditure for a set period of time. Without a budget, it is impossible to
control the project, and it is impossible to know if it is feasible.
Income is money received, especially on a regular basis, for work or through investments. The amount
of money received during a period of time in exchange for labor or services, from the sale of goods or
property, or as a profit from financial investments.
o Estimate the rental cost of material loaned or donated by sponsors.
o The total amount requested must be made clear (and must not exceed the maximum
usually granted).
o Calculate total receipts. This figure must be higher than total expenditure (otherwise
there will be no profit).
Expenditure is the act of spending money or time and it is something on which you spend money.
o List all expenses connected with the project.
o Estimate the cost of all outgoings (in the currency specified on the form).
o Your estimate must be realistic (show how you have arrived at the final sum).
o Expenditure must correspond to the anticipated programme of activities
o Estimate the rental cost of any material loaned by the private sector and include it
under expenditure (and receipts).
o Calculate your total expenditure.
A simple format for a budget
Activity Amount in (Currency)
Income (money in)
Total Income (money in)
Expenditure (money out)
Total Expenses (money out)
Savings
= + Surplus/-Deficit (Money In - Money Out)
Resource Mobilization
Resource mobilization is a major sociological theory in the study of social movements which emerged in
the 1970s. It stresses the ability of a movement's members to 1) acquire resources and to 2) mobilize
people towards accomplishing the movement's goals. Resource Mobilization. Mobilization is "the
process of forming crowds, groups, assiciations, and organizations for the pursuit of collective goals".
Resource mobilization Resource mobilization refers to a distinct perspective for understanding social
movements, emphasizing the critical role played by material resources.

21. 21
Resource is a stock or supply of money, materials, staff, and other assets that can be drawn on by a
person or organization in order to function effectively.
Resource mechanism – a way resources can be mobilized from a provider Resource providers –
Resource providers are the sources of funds and include banks, micro-credit agencies, government
agencies, and charitable businesses.
Steps to looking for funds:
1. What is your business plan? Your lender needs to know your plan.
2. What funds do you need for your business? A detailed budget is most important. It
convinces potential lenders that you have done your homework. It confirms that this is a
good business idea.
3. What resources do you have?
4. Go back to step one. Are you convinced that your business plan is realistic?
5. List the sources of funding available to you. Consider family, banks, credit unions, village
lending programs, cooperatives and any other money lenders.
6. Prepare the loan application.
7. If you get the loan, put the money in a safe place and begin working according to your
plan. Do not divert funds to other needs. You have to build a successful business and
repay the loan. 8. If you do not get the loan, ask the lender why not? What can you learn
from that? What can you change for the next application?

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Other Sources
Write down the sources of funding you will consider in your business. Give local specifics e.g. name of
the bank. Give advantages and disadvantages and choose one of them.
Section 3: Realistic planning.
Every one of us in some forms or another wants to be successful and achieve our dreams. But most of
the time we are very blur with what we want to achieve and do not have any realistic plan to do what it
takes to be successful at it. More often than not we also rely on luck and chance to get it. Dealing with
adversity requires that people be able to think clearly. For most of us, this is difficult in a crisis. Emotion
may cloud our thinking. It may act as a filter through which we view our world.

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Four simple rules can help simplify realistic planning for you:
1. Subdivide the tasks into packages!
Since there is a great deal of detail work to be carried out when setting up a business, there is always
the danger of losing sight of the big picture. Thus you should always organise the individual activities in
“packages.” The business plan should, however, not contain more than ten such packages; you can
specify them further at a later date. A concrete objective is to be set for each package.
2. Ask the experts!
Utilize the advice of specialists in order to underpin major steps in planning. Marketing specialists, for
example, could show you how long it will take to develop and conduct a given campaign.
3. Set priorities!
Every overall planning concept comprises a series of events and assumptions that in some cases run in
parallel and are linked one with another. Certain activities can, if delayed, endanger the entire project –
similar to assembly line production that comes to a halt, if certain parts are lacking. Activities such as
these are referred to as the “critical path.” You should devote particular attention to them in your
planning.
4. Reduce risks!
Try to schedule activities that will reduce risks for the beginning of the realization phase. You could, for
example, carry out market studies immediately or just shortly after market entry. If you do not carry out
such surveys or polls until a later point in time and find that there are not enough customers for your
product, all the previous work may have been in vain.
Critical questions in planning and implementation
- What are the milestones in developing your business and when do they have to be reached?
- What core questions have to be clarified here?
- What lead times and what expenditures are associated with clarification? Depict your activities
on a timeline.
- What tasks and milestones are dependent directly one upon the other?
- What is the “critical path”?
- What tasks appear in addition as the business grows and how will you organize those tasks
logically into work “packages”?
- What do the first and subsequent steps look like?

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Module 5:
Marketing
The management process through which goods and services move from concept to the customer
From a societal point of view, marketing is the link between a society's material requirements and its
economic patterns of response. Marketing satisfies these needs and wants through exchange processes
and building long-term relationships.
MARKETING QUESTIONS
1. PEOPLE
- Who are my customers?
- What do they like?
- What do they need?
- Do they have money to buy my product?
2. PRODUCT
- How do I make or get the product?
- Does it meet the customer’s need?
3. PLACE
- Where will I start my business?
- Is it convenient for the customer?
4. PRICE
- How much will it cost to get the product to the customer?
- How much will they pay?
- Will I make a profit?
5. PROMOTION
- How will I let people know I am in business?
- How will I attract them to my business?
- How will they know my product is better than another?
The “5 Ps” of marketing
1. Product- Refers to the goods or services that respond to the needs of the client.
2. Price- Means to fix a price that your clients are ready to pay and to be sure that the
price is attractive, all toward the aim of earning a sufficient profit.
3. Promotion- Refers to informing the public of your enterprise and inciting those clients to
purchase your goods or services.
4. Place- Refers to the location where your enterprise is situated.
5. Personnel- Signifies how your employees represent the business and how they interact
with the clientele.

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 Product:
 How can my product respond to the wants and desires of current or potential clients?
 How can I improve my product?
 Is my product adaptable to market demand? Can the product be improved?
 Is my level of production sufficient to satisfy the level of demand of my clients? Do I avoid production
surpluses?
 Price:
 Are my clients able to pay for the product? (Consider the means of your clients and price offered by
the competition)
 Can I attract more clients with special offers? (10th product free, price reduction during certain
periods of the year, etc.)
 Promotion:
 What means do I have at my disposal to inform the public of my product and its quality?
 Are the means of communication convenient for my target clientele? (Consider the most appropriate
avenues for getting out your message)
 Place:
 Is my product easily accessible to customers?
 How might I be able to get nearer to my customers?
 How might I be able to distribute the product more effectively?
 Is my shop/workplace well lit, clean, well organized and attractive to the eye?
 Personnel:
 Does each employee adequately represent the enterprise and its image?
For example:
 Knows the product(s) and the price(s)
 Responds well to the needs and questions of customers
 Conducts him/herself professionally
 Is well-dressed
 Is effective at his/her work
 Understands how to sell and communicate well.
Competition
Competitive advantage is a business concept describing attributes that allows an organization to
outperform its competitors. These attributes may include access to natural resources, such as high
grade ores or inexpensive power, highly skilled personnel, geographic location, high entry barriers, etc. A
‘competitive advantage’ may be product-related or service-related. This is an advantage that a firm has
over its competitors, allowing it to generate greater sales or margins and/or retains more customers
than its competition. There can be many types of competitive advantages including the firm's cost
structure, product offerings, distribution network and customer support.
Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's
cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower
prices than competitors for equivalent benefits or providing unique benefits that more than offset a
higher price. There are two basic types of competitive advantage: cost leadership and differentiation.
-- Michael Porter, Competitive Advantage, 1985
The most typical causes of innovations that shift competitive advantage are the following:

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 new technologies
 new or shifting buyer needs
 the emergence of a new industry segment
 shifting input costs or availability
 changes in government regulations
Competitive advantage pillar in the market;
• Better quality
• Better display
• Better location
• Better service
New Entrants
BuyersSuppliers
Substitutes
Industry
Competitors
Intensity
of Rivalry
Threat of
Substitutes
Threat of
New Entrants
Bargaining Power
of Suppliers
Bargaining Power
of Buyers
Determinants of Buyer Power
Bargaining Leverage
• Buyer concentration vs.
firm concentration
• Buyer volume
• Buyer switching costs
relative to firm
switching costs
• Buyer information
• Ability to backward
integrate
• Substitute products
• Pull-through
Price Sensitivity
• Price/total purchases
• Product differences
• Brand identity
• Impact on quality/
performance
• Buyer profits
• Decision maker’s
incentives
Determinants of Substitution Threat
• Relative price performance of substitutes
• Switching costs
• Buyer propensity to substitute
Rivalry Determinants
• Industry growth
• Fixed (or storage) costs / value added
• Intermittent overcapacity
• Product differences
• Brand identity
• Switching costs
• Concentration and balance
• Informational complexity
• Diversity of competitors
• Corporate stakes
• Exit barriers
Entry Barriers
• Economies of scale
• Proprietary product differences
• Brand identity
• Switching costs
• Capital requirements
• Access to distribution
• Absolute cost advantages
Proprietary learning curve
Access to necessary inputs
Proprietary low-cost product design
• Government policy
• Expected retaliation
Determinants of Supplier Power
• Differentiation of inputs
• Switching costs of suppliers and firms in the industry
• Presence of substitute inputs
• Supplier concentration
• Importance of volume to supplier
• Cost relative to total purchases in the industry
• Impact of inputs on cost or differentiation
• Threat of forward integration relative to threat of
backward integration by firms in the industry
Value Chain Analysis
Value Chain Analysis helps you identify the ways in which you create value for your customers, and then
helps you think through how you can maximize this value: whether through superb products, great
services, or jobs well done.
Value Chain Analysis is a three-step process:
1. Activity Analysis: First, you identify the activities you undertake to deliver your product or service;
2. Value Analysis: Second, for each activity, you think through what you would do to add the greatest
value for your customer.
3. Evaluation and Planning: Thirdly, you evaluate whether it is worth making changes, and then plan for
action

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Module 6:
Costing and Pricing
Costing
Costing is an amount paid or required in payment for a purchase; Activity-based costing (ABC) is
a costing methodology that identifies activities in an organization and assigns the cost of each
activity with resources to all products and services according to the actual consumption by each. Costing
is basically the ascertainment of cost whether for a specified thing or activity.To ascertain cost, we
need to apply accounting and costing principles, methods and techniques
Importance of costing
 It assist management to make decision for example make or buy, whether to accept a special
order and others;
 It assist management in planning and control;
 Costing assists management to appreciate scarce resources in the increasingly complex business
operations;
 Understanding costing assist in cost awareness, cost control / management;
 Is vital to an organization’s survival re: using marginal cost in competitive tendering and others.
Types of costs
1. Fixed costs
These are costs that do not change with the level of production. They are incurred even if no production
takes place e.g. rent of premises.
2. Direct cost
Direct cost refers to costs which are directly connected with the production of products or services.
Examples include the cost of raw material, stock, cost of labour (wages), transportation and handling
expenses
3. Variable costs
These are costs that are directly related to the level of production. They increase or decrease in direct
proportion to the level of production. For example: raw materials, stock, cost of packaging, transport,
handling of goods and electricity (if machines are used).
4. Indirect cost
These are costs that relate to the running of the business but not directly to the production process.
Examples include maintenance costs, equipment, electricity, and interest on the loan.
A formula that articulates how to estimate the selling price is:
Selling price = cost of goods sold/unit + Operating costs/Unit + Desired profit/ unit

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The pricing decisions for a product are affected by internal and external factors.
A. Internal Factors:
1. Cost:
2. The predetermined objectives:
3. Image of the firm:
4. Product life cycle:
5. Credit period offered:
6. Promotional activity:
B. External Factors:
1. Competition:
2. Consumers:
3. Government control:
4. Economic conditions:
5. Channel intermediaries:
Profit calculation
Profit: A financial benefit that is realized when the amount of revenue gained from a business activity
exceeds the expenses, costs and taxes needed to sustain the activity.
Revenue: the total amount of sales during a specific period, including discounts and returned
merchandise.
Price: the sum or amount of money or its equivalent for which anything is bought, sold, or offered for
sale.
Expenditure: actual payment of cash or cash-equivalent for goods or services
Sales Volume: quantity or number of goods sold or services rendered in the normal operations of a firm
in a specified period
Some simple formulas;
 Profit = Revenue - Expenditures
 Revenue = Price x sales volume
 Expenditure = Material + Labour + Transportation...
 Price = Cost + Profit
You can increase profits by reducing expenditure and increasing revenue.

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Module 7:
Operational management
Operations management is an area of management concerned with overseeing, designing, and
controlling the process of production and redesigning business operations in the production of goods or
services.
Operations Management deals with the design and management of products, processes, services and
supply chains. It considers the acquisition, development, and utilization of resources that firms need to
deliver the goods and services their clients want.
Operations management refers to the activities, decisions and responsibilities of managing the
resources which are dedicated to the production and delivery of products and services.
The part of an business that is responsible for this activity is called the operations function and every
business has one as delivery of a product and/or service is the reason for existence.
Operations managers are the people who are responsible for overseeing and managing the resources
that make up the operations function. The operations function is also responsible for fulfilling customer
requests through the production and delivery of products and services.
Operations managers' responsibilities include:
 Human resource management – the people employed by an business either work directly to
create a good or service or provide support to those who do. People and the way they are
managed are a key resource of all businesses.
 Asset management – an business's buildings, facilities, equipment and stock are directly
involved in or support the operations function.
 Cost management – most of the costs of producing goods or services are directly related to the
costs of acquiring resources, transforming them or delivering them to customers. For many
businesses in the private sector, driving down costs through efficient operations management
gives them a critical competitive edge. For businesses in the not-for-profit sector, the ability to
manage costs is no less important.
Decision making is a central role of all operations managers. Decisions need to be made in:
 designing the operations system
 managing the operations system
 Improving the operations system.
The five main kinds of decision in each of these relate to:
1. the processes by which goods and services are produced
2. the quality of goods or services
3. the quantity of goods or services (the capacity of operations)
4. the stock of materials (inventory) needed to produce goods or services
5. The management of human resources.
The Operations management may define clearly:
1. Business structure
2. Roles and responsibilities of organ in the business structure

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3. Recruiting Productive people into groups or businesses.
Module8:
Record keeping
 WHAT ARE RECORDS?
Records refer to the information created, received, and maintained as evidence by an business or
person, in pursuance of legal obligations or in the transaction of business. For instance, a receipt book is
a record of cash entering coming into a business or business.
 RECORD-KEEPING
This is a systematic process of compiling similar or related information resulted from business activities
or operations into one document, and storing it in files/folders (accepted formats) for the purpose of
tracking and assessing the performance or operations of a business. Starting a business is exciting.
You're doing what you love and what you're good at. It's important you keep accurate and complete
records. Your business records should include:
 banking information-Documents you receive from the bank such as bank statements, loan
documents and bank deposit books.
 Profit and loss statement (income statement) - Records of all sales transactions - for example,
invoices including tax invoices, receipt books, cash register tapes and records of cash sales.
 Expenses-Records of all business expenses, including cash purchases. Records could include
receipts, invoices including tax invoices, cheque book receipts, credit card vouchers and diaries
to record small cash expenses
 cash books- The cashbook is used to records all cash transaction of the business usually after
specific periods of time, that is, monthly, quarterly, semi-annually or annually
 Daily sales record -This form is used to record all daily sales. It helps to establish the total sales
per day.
 Receipt book -The receipt book records money coming in (income of the business).
 Cash flow statements
 Fixed assets registration – document all assets owned
 Stock taking – stocks control records
 Wage books.- wages and salaries including stipend records
 Credit sales – Document sales on credit.
Read more on the types of the record tools above.
Why do you need to keep records
Good records are important for your business because they
 Monitor the progress of your business
 plan and work more efficiently
 meet legal and tax requirements
 measure profit and performance
 generate meaningful reports

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 protect your rights
 Manage potential risks.
Module 9
Savings, Risk and Transition
Saving is income not spent, or deferred consumption. Methods of saving include putting money aside
in, for example, a deposit account, a pension account
A personal budget is a finance plan that allocates future
personal income towards expenses, savings and debt repayment. Past spending and personal debt are
considered when creating a personal budget
Savings can be done through:
1. Small but regular deposits
2. Automatic deductions from salaries, wages or income
Importance of saving
 Keep your money safe
 Earn interest
 Be prepared for surprise expenses
 Afford large purchases
 Achieve major goals
 To provide for specific needs in the future
 To have access to monetary or other assets whenever needed
 To ensure financial independence
 To make one’s own resources inaccessible for others without one’s approval
 To safely store surplus
 To acquire skills for proper money management and self-discipline
 To qualify for certain types of loans
.
Planning for transition
Imagine you fall sick today and are hospitalized or you are not able to work hard and run your business
due to an unforeseen circumstance. What will be the source of income for your business, family and

32. 32
employees once a calamity befalls you? You need to put in place measures that would ensure continued
operation of your business.
Always get prepared by:
 Always have someone you trust involved in your business.
 Get a person who is trained to run the business.
 Get the person you trust to know where your business papers, licenses, and cash are
and how to maintain them.
 Let him/her have access to you property.
 Introduce Him/her to your suppliers are and how to access them.
 Train the person in preparation for them to assume responsibility for the continuation
of my business.
 Induct the person with skills to meet the requirements of your customers
 Delegated to him/her sufficient authority like signing power for your bank accounts.
 It is best to have all of the documents required for your business in a single file or
notebook The files should be available in case of emergency but kept confidential and in
a safe place.
 You must have some of the documents on public display.
 Consult with someone you trust to protect your interests, your lawyer, your accountant,
or your bank.
 You may want to give signing power to a spouse or someone within your immediate
family

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References
1. Entrepreneurship Skills Training Manual, German Foundation for World Population (DSW)
Ethiopia, 2012.
2. How to Start a Small Business: A Step-by-Step Guide to Starting a Small Business by Alyssa
Gregory (www.sbinformation.about.com)
3. Farmers training entrepreneurship manual-2014
4. The Youth Entrepreneurship Training Program (YETP)
5. http://www.investopedia.com/terms/m/market
6. http://www.businessdictionary.com/definition/
7. econlib.org/library/Enc/Entrepreneurship.html.
8. http://www.entrepreneurshipinabox.com/667/business-ideas-three-must-have/
9. http://www.investopedia.com/terms/e/entrepreneur.
10. http://www.businessdictionary.com/definition/entrepreneurship.
11. DSW (Deutsche Stiftung Weltbevoelkerung) June 2014 Manual
12. http://blog.startupprofessionals.com/2012/08/entrepreneurs-need-to-listen-more
13. http://articles.bplans.com/5-key-traits-of-successful-entrepreneurs/
14. http://www.mbda.gov/blogger/starting-business/8-traits-successful-entrepreneurs-do-you-
have-what-it-takes
15. http://mitsloan.mit.edu/omg/om-definition.php
16. Entrepreneurship development training manual 2014
17. Business Plan Manual (http://www.start2grow.de/)