4. Traits of Entrepreneurs Innovation Ability to generate new ideas and search new business opportunities Desire to Achieve Strong desire to achieve something Risk Taking Ability to take moderate risks Energy High level of energy and stamina for hardwork Vision Ability to look beyond the present Organising Skills Ability to mobilise and coordinate resources Responsibility Sense of personal responsibility
10. Technically feasibleProbable operating costs and proposed revenue by market survey Selection Profitability Product design, pricing, distribution & publicity Product Decision
11. 2. Size of the Units Determination of scale of operations Optimum size where average cost per unit is minimum Large scale – Offers economies of scale but involves huge capital & expert managerial skills. If risk involved is high, its preferable to start small and then grow. A careful analysis and reconciliation of technical, managerial, financial, market and such factors should be considered.
12. 3. Location of Business It influences costs, profitability and growth Absolute care should be taken since its very difficult to change the selected site. 3 stages are- Select region Choice of locality Selection of the site An unfavourable location may restrict the growth of the firm in addition to higher costs.
13. 4.Form of Ownership Determine the division of profits, authority, liability of owners, continuity of business and transferability of interests. Forms Sole Proprietorship Partnership Joint stock company A good form of ownership should be easy to form, simple to operate, durable, flexible, free from heavy taxation and legal requirements.
14. 5. Financial Planning Adequate funds must be provided at the right time for the start & continuity Advance decisions in financial planning are-
15. 6. Provision of Physical Facilities Selection of machines, equipments, plant and buildings. Nature and quantum depends upon the Size of the Firm – Large, medium or small Nature of the Business – Manufacturing, trading and service Process of Production- Capital-intensive or Labour-intensive Availability of funds Relative cost and effect on Productivity Availability of spares Maintenance services Skills of workers
16. s 7. Plant Layout Arrangement of physical facilities is called Plant Layout. Good layout is essential for efficient and economical operations Helps reduce cost and efforts of material handling, inventory & space. Proper placement to ensure smooth flow of material. Layout should be flexible and adapt itself to changing conditions to avoid delays in production process.
17. s 8. Internal Organization Creation and development of internal structures Departmentation, viz, Production, finance , marketing & personnel Authority-Responsibility-Accountability relations Facilitates efficient operations, avoids duplication, promotes mutual co-operation and coordination Departmentation, delegation, span of control decisions.
18. s 9. Personnel Need of people or human capital Human resource planning - Number & type of employees Procurement, development & motivation Proper compensation and non-financial incentives for maximum contribution towards organizational goal.
19. s 10. Launching of the Enterprise Completion of physical, organizational and financial aspects. Final launch of the enterprise
21. Genration of Business Ideas Sources of Business Idea Observing Markets Prospective consumers Developments in other nations Study of project profiles Governement Orgns Trade fairs and exhibitions Generating Ideas-Approaches Brainstroming Improvement of an existing product New ways of doing things Utilizing waste materials Converting hobbies into business
22. Selection of a Project Idea Cost structure must ensure reasonable return Resources required could be easily mobilized Compatible with legalities & regulations Idea should match resources Feasibility Sufficient demand of the product or service
36. VI. Project Appraisal In-depth analysis made to decide selection or rejection of the project.
37. VII. Project Report Post feasibility study and project appraisal, the findings and recommendations are presented in a report known as Project Report. Its helpful in getting clearances from Govt. Also in applying loans from financial institution.
38. , suppliers VIII. Preparation of Business Plan Written document Describes all relevant internal and external elements effecting the start-up. Integration of functional plans, stating long term and short term goals of the new venture. Self assessment by entrepreneur Determine the viability of venture in designated markets Helps in raising necessary funds. Judging the progress of the project at successive stages. Investors, lenders, suppliers know about entrepreneur’s plans.
39. IX. Launch Enterprise Once convinced of the feasibility and profitability of the project, he assembles the necessary resources to launch the enterprise. Once commissioned, the operational phase stage starts.
