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Basics of entrepreneurship

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A quick makeover of my wife's PowerPoint presentation. I tried explaining the 6x6x6x6 rule for text but she cannot relate to that. Shows how a good template and simple pictures can transform a text heavy presentation.

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Basics of entrepreneurship

  1. 1. Building A Successful Business By Bolaji Osime – Small Business Mentor
  2. 2. My Road Map To Success If success means  Making God my Cornerstone  Praying and fasting hard  Establishing a God Given Dream  Working very hard 24/7  Empty panadol packs  Attending numerous seminars  Overcoming several Challenges Then definitely I have a successful business
  3. 3. Where Are You Now?  Starting a new business?  Working to grow current business?  Enjoying success in your business?  What is the cornerstone of your business ?
  4. 4. Are you Ready?  Are you cut out for this?  Why are you doing this ?  Where will your business be 5 years from now?  What makes your business different
  5. 5. 20 Years Proven Track Record  Story of  Determination, perseverance, hard work, patience, long suffering  Grew Gic  From 13 students to 600 students  Grew Global Bookshop  From one customer to  World of fun  From to over 200 in attendance  Total Turnover for all biz  Now N350 million
  6. 6. Steps to a great Business  An Entrepreneurial Spirit (Traits needed)  A Sound Business Concept and Vision  Growing Market  Understanding the Market  Capable Management  Able Financial Control  Consistent Business Focus
  7. 7. Consider This:  Have you chosen your corner stone?  Have you prayerfully established your business idea, vision and mission  God wants you to succeed  Joshua 1v8 Read Word + Obedience = Success  Jeremiah 29V11  Deutronomy 18v18  ASK GOD FIRST!!  Ask God for an idea, a clear vision.
  8. 8. Personality Traits You Need I  Ambition , Drive and Achievement  Optimistic Attitude  Calculated risk taker  Innovative and Creative  Works under stress  Skilled Organizer
  9. 9. Personality Traits you need II  Goal and People oriented  Eye for opportunity  Self-confident & Self reliant:  High level of energy and Hard worker  High tolerance for ever changing situations  Disciplined, persistent & Determined
  10. 10. Strategic Business Vision  See into the future  A Divine Vision  that fills a need  necessary capital  burning desire  Clear picture of how to reach destination  Job33 v14-15  Proverbs 29 V18a  Hebrews 2v1
  11. 11. A Sound Business Concept  Is your idea sound?  Do you fill a need?  Do others fill that need?  Will a lot of customers buy it?  Are your returns attractive?  Are the risks acceptable?
  12. 12. Business Concept Validation  Check your idea for faults  Be ready to answer questions  from investors and bankers  Is the market ready for it?  How soon will your idea be put into operation?  (Assume delays, worst case scenarios)
  13. 13. “I never perfected an invention that I did not think about in terms of the service it might give others …I Find out what the world needs, then I proceed to invent” Thomas Edison, Inventor
  14. 14. Opportunities In Nigeria  Unsatisfied needs  Transportation, alternative to energy  Changing government policies  Privatization - telecoms, ban on importation of biscuits, juice, furniture  Technological changes  Internet cafes, website pages for coys, flash disks, cake graphics
  15. 15. Opportunities In Nigeria  Demographic changes  Working mothers - daycares  Environmental changes  Poverty- breaking bulk, more demand for repair shops & Tokunbo markets -cars, Okadas, clothes etc  Trends  Entertainment, sports, leisure, eating habits
  16. 16. Growing Market  You must attract and retain a sustainable growing market  Potential customers  Why will they purchase it from you?  Identify your market  size and locations.  How will you reach your customers?  How will you advertise & market your products services  Explain your pricing strategy  Define your revenue streams
  17. 17. Finding A Niche Market  Select specific target market  Ensure right configuration:  Products/services, Quality, price  Least direct competition  Know & analyze competition  Competitive advantage?  Delivery of better quality service
  18. 18. Marketing Strategy  Who can you better serve than your competitors?  Tailor your product, prices, distribution, promotion  Profitably meet unmet customer needs?  Determine customers needs by market research  Analyze your competitive advantages  Develop a market strategy  Select specific markets by target marketing  Satisfy needs by identifying a market mix
  19. 19. Capable Management • Look for experienced people • Who you like and admire • Have good ethical values • Have complementary skills • Are smarter than you • Hire the skills you lack • Define your unique ability • Seek others who turn your weaknesses into strengths
  20. 20. Consistent Business Focus People who specialize in a product or service will do better than people who do not specialize. Focus your efforts on something that you can do so well that you will not be competing solely on the basis of price.
  21. 21.  Explain your source and the amount of initial equity capital.  Develop a monthly operating budget for the first year.  Develop an expected return on investment and monthly cash flow for the first year.  Provide projected income statements and balance sheets for a two-year period.  Discuss your break- even point. Financial Control
  22. 22. Financial Control  Explain your personal balance sheet and method of compensation.  Discuss who will maintain your accounting records and how they will be kept.  Provide "what if" statements that address alternative approaches to any problem that may develop.  Have a hands on approach and ensure you monitor your daily income and expense  Keep Costs Down
  23. 23.  Stay in a field you love.  Know your business before you start  Work for someone else in it  Develop human talent  Value your customers  Establish a loyal customer base  Make your business “process, not people” Dependent  Document your business processes  Keep a very close eye on your business especially the financials Other Tips For Success
  24. 24. …And  Copycat the winners in your business  Specialize, even to a single product  Find a product or service that is:  Needed or desired  Thought by customers to have no close substitute  Not subject to price regulation  Set a cap on your liability  Learn computer skills  Learn communication skills  Have a lawyer, accountant, and insurance agent before you start.
  25. 25. …FINALLY  Prepare a business plan  Prepare the site criteria model for your particular business  Do "for and against" lists for major decisions  Buy when everyone is selling (and vice versa)  Deal with those you like, trust and admire  Learn accounting  Create your own internal control plan  Keep going to school in important subjects Give back to the community
  26. 26. Rewards of Entrepreneurship  You will be your own boss.  Hard work and long hours benefit you, rather than someone else.  Earning and growth potential are far greater.  A new venture is as exciting as it is risky.  Endless challenge and opportunities for learning.  Independence  Satisfying way of life
  27. 27. Rewards of Entrepreneurship  Work harder, earn more money, and are happier than if you worked for a large company.  Opportunity to gain control over your destiny -- achieve what is important to you.  Opportunity to make a difference -- combining concerns for social issues with the chance to make a good living.  Opportunity to reach your full potential -- situations where your growth is limited only by your own talent and energy.  Opportunity to reap unlimited profits. Although money is not the driving force for most entrepreneurs, profit can be a motivating factor.
  28. 28. Why Businesses fail  Uncontrolled cash flow:  Run out of cash, you crash.  Project cash flow for expansion very conservatively  Be sure to:  Forecast income (sales) very low  Forecast expenses very high  Provide for unanticipated contingencies.  Insufficient sales:  Ruthlessly cut costs.  Higher costs:  Increase volume of sales?  Offset with higher prices?
  29. 29. Business failure  New competition  Business recessions  Incompetent managers or employees: Act swiftly to rid yourself of them.  Dishonesty and theft.  Study your most successful competitor
  30. 30. Why Businesses fail  Slow growing Market  Lack of experience  Insufficient capital  Poor location  Poor inventory management  Over-investment in fixed assets  Poor credit arrangements  Personal use of business funds  Unexpected growth
  31. 31. Do’s of Business  Motivate your managers with monetary incentives tied to their individual success.  Copycat the successful marketing and policies of your large successful competitors.  Stick with what you do best during downturns in business cycles.  Compartmentalize your expanding business into profit centers.
  32. 32. Do’s of Business  Copycat the internal controls used by your successful competitors.  Prepare monthly financial statements of your individual profit centers.  Act swiftly to rid yourself of incompetent or dishonest employees.  Take the initiative to keep creditors informed of your problems and needs.
  33. 33. …Don’ts  Never sign a lease without your lawyer's review.  Avoid a "commodity" business (one without pricing power) i.e. Trading  Don't burn bridges of job security to start a business if you can help it.  Don't become a business zombie: take time off.  Don't compete with category killers (Shoprite) unless you have a special niche.  Don't even think about your second store until the first one is reliably profitable.
  34. 34. …Don’ts  Do not give you personal guarantee unless absolutely required; then limit your liability.  Do not let commissioned salespersons set prices.  When required for any reason, do not fail to promptly cut cost to maintain positive cash flow.  Don't cut the value or quality of your product or service.  Do not delegate signing checks (any amount) or making capital expenditures.
  35. 35. Want More Information?  See fate foundation  email me at:  osime@hyperia.com
  36. 36. ThankThank YouYou

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