(II) PRINCIPLES OF

ENTREPRENEURSHIP
GOAL SETTING

 A GOAL can be defined as, “ the end toward which effort is directed”
or “the object of a person's ambition or effort; an aim or desired
result”
 SMART (short, medium, long term )
The SMART acronym outlines a strategy for reaching any objective.
SMART goals are Specific, Measurable, Achievable, Realistic and
anchored within a Time Frame.
A SHORT-TERM GOAL

 A short-term goal is something you want to do in the near future. The near future
can mean today, this week, this month, or even this year. A short-term goal is
something you want to accomplish soon. A short term goal is a goal you can
achieve in 12 months or less.
A MEDIUM TERM GOALS

 A medium term goal is one that takes a bit longer. It could be a goal to be
achieved in the next 2 weeks, a month or perhaps 6 months. It could be a goal to
be achieved in the next 6 months, a year or perhaps 5, 10 or 20 years.
A example of medium term goal might be to run 10km. The only way to run 10km is
to achieve several short term goals of running a shorter distance. A medium term
study goal might be, to be able to explain the steps in mitosis.
A LONG-TERM GOAL

 A long-term goal is something you want to accomplish in the future. Long-term

goals require time and planning. They are not something you can do this week or
even this year. Long-term goals are usually at least several years away.
DECISION-MAKING SKILLS

 Decision-making skills show your proficiency in choosing between two or more

alternatives. You can make decisions once you process all the information
available to you and speak with the right points of contact involved in a certain
situation.
 Why is decision making skill are important
Some decisions need to be made quickly while others need to be deliberated,
considered and weighed out over a longer period of time. Decision making is a
critical skill for effective management and leadership. Some people are just not
suited to leadership roles because of their lack of ability to make decisions.
DECISION MAKING SKILLS FOR SUCCESSFUL LEADERS.

 Identify critical factors which will affect the outcome of a decision. ...
 Evaluate options accurately and establish priorities. ...
 Anticipate outcomes and see logical consequences. ...
 Navigate risk and uncertainty. ...
 Reason well in contexts requiring quantitative analysis.
BUSINESS PLANS

 A business plan is a formal written document containing business goals, the

methods on how these goals can be attained, and the time frame within which
these goals need to be achieved. It also describes the nature of the business,
background information on the organization, the organization's financial
projections, and the strategies it intends to implement to achieve the stated
targets. In its entirety, this document serves as a road map that provides direction
to the business
It contains
Executive Summary, company description, market analysis, Organization and Management, Service or Product Line,
Marketing and Sales, Funding Request, Financial Projections, An Appendix.
 SMALL BUSINESS PLAN
BUSINESS PLAN MUST INCLUDE:
 DESCRIPTION OF BUSINESS; Includes

✓ The company name

✓ What your company does

✓ Where you operate (or the market you serve)

✓ What you stand for, so people can better identify your business(people love to rally around a good cause, so give
people a reason to rally around your business. (fair trade, honesty, organic, transparent)
✓ Why you started your business

✓ Give your customers a taste of your future goals

 SMALL BUSINESS PLAN CON´T
 STATEMENT OF PURPOSE;
Reflects the main idea behind what you do.
✓ Write down expectations
✓ Explain business goals and outline how you will get there
✓ How your work will benefit your customers
✓ The amount of loan required to start your business
✓ The amount you putting in
✓ Purpose of the loan
✓ The loan period –for how many years you require the loan amount for
 SMALL BUSINESS PLAN CON´T

 SERVICES

Are referred to as the activities that assist business yet does not deliver a tangible commodity
✓ Describe what you sell or what services you offer

✓ Explain how it benefits your customers.

 SMALL BUSINESS PLAN CON´T
 MARKETING PLAN –includes
✓ Target market-describes the customers you are targeting
✓ Promotion strategy- details how you will reach new customers. There are numerous promotional tactics, such as television ads, trade show
marketing, press releases, online advertising, and event marketing.
✓ Specials-are special deals you put together to secure more new customers and drive past customers back to you. Offers may include free
trials, money-back guarantees, packages (e.g., combining different products and/or services) and discount offers.
✓ Prices-
✓ Distribution plan- details how customers will buy from you. For example, will customers purchase directly from you on your website? Will they
buy from distributors or other retailers? And so on.

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 SMALL BUSINESS PLAN CON´T

HOW YOUR BUSINESS OPERATES.

 Explain the organizational structure of your business (how your company will set up)

 Outline your business activities along with the strategies

 Staff and resources management

SUCCESS FACTORS
 (marketing and promotion, customer
satisfaction, competitiveness, leadership,
management of production and efficiency,
quality control);
MARKETING AND PROMOTION
 1. Marketing- the action or business of promoting and selling
products or services, including market research and advertising.
 2. Promotion refers to any type of marketing communication used to
inform or persuade target audiences of the relative merits of a
product, service, brand or issue. The aim of promotion is to increase
awareness, create interest, generate sales or create brand loyalty.
TYPES OF PROMOTION

 Physical- in concerts, festivals, trade shows, grocery or department

stores.
 Traditional media - newspapers and magazines, electronic media such
as radio and television, and outdoor media such as banner or
billboard advertisements.
 Digital media- Internet, social networking and social media sites
CUSTOMER SATISFACTION

 is defined as a measurement that determines how happy

customers are with a company's products, services, and
capabilities. Customer satisfaction information, including
surveys and ratings, can help a company determine how to
best improve or changes its products and services (key
performance indicator).
COMPETITIVENESS

 the quality of being as good as or better than others of

a comparable nature and to produce goods and
services that successfully match the market's needs.
it’s important because it has been found to be the
main factor driving growth and income levels.
LEADERSHIP

 Entrepreneurial leadership involves organizing

and motivating a group of people to achieve a
common objective through innovation, risk
optimization, taking advantage of opportunities,
and managing the dynamic organizational
environment
SOME OF THE COMMON ENTREPRENEURIAL LEADERSHIP CHARACTERISTICS
ARE AS FOLLOWS.

 1.Communication skills
 2. Vision
 3. Supportive
 4. Self-belief
 5. Shares success
 6. Involved
 7. Create an atmosphere conducive to growth
 8. Honesty
 9. Perseverance
 10. Learning
MANAGEMENT OF PRODUCTION AND EFFICIENCY.

 Production management means planning, organizing, directing and

controlling of production activities.
 Production efficiency is based on a business's ability to produce the
highest number of units of a good while using the least amount of
resources possible. The aim is to find a balance between the use of
resources, the rate of production and quality of the goods being
produced.
QUALITY CONTROL.

 a system of maintaining standards in

manufactured products by testing a sample of
the output against the specification. (Protect the
brand or identity, maintain customers trust)
GOVERNMENT LEGISLATION

 Governments set many business regulations in place to protect employees' rights,

protect the environment and hold corporations accountable for the amount of
power they have in a very business-driven society. The government can implement
a policy that changes the social behavior in the business environment. Imposing
on a particular sector more taxes or duties than are necessary will make the
investors lose interest in that sector, or tax and duty exemptions on a particular
sector trigger investment in it and may generate growth.
LENDING INSTITUTIONS.
A financial institution that makes loans
 Financial institutions can be divided into two main groups: depository institutions
and nondepository institutions. Depository institutions include commercial banks,
thrift institutions, and credit unions. Nondepository institutions include insurance
companies, pension funds, brokerage firms, and finance companies.
 financial institution, financial organization, financial organization - an institution
(public or private) that collects funds (from the public or other institutions) and
invests them in financial assets.
 A lender is an individual, a public or private group, or a financial institution that
makes funds available to a person or business with the expectation that the funds
will be repaid. Repayment will include the payment of any interest or fees.
Commercial banks are generally stock corporations whose principal obligation is to
make a profit for their shareholders. Basically, banks receive deposits, and hold
them in a variety of different accounts; extend credit through loans and other
instruments: and facilitate the movement of funds. While commercial banks mostly
specialize in short-term business credit, they also make consumer loans and
mortgages, and have a broad range of financial powers. Their corporate charters
and the powers granted to them under state and federal law determine the range of
their activities.
Credit Unions
 Credit unions are cooperative financial institutions, formed by groups of people
with a "common bond." These groups of people pool their funds to form the
institution's deposit base; the group owns and controls the institution together.
Membership in a credit union is not open to the general public, but is restricted to
people who share the common bond of the group that created the credit union.
Examples of this common bond are working for the same employer, belonging to
the same church or social group, or living in the same community. Credit unions
are nonprofit institutions that seek to encourage savings and make excess funds
within a community available at low cost to their members.
 Credit unions accept deposits in a variety of accounts. All
credit unions offer savings accounts, or time deposits; the
larger institutions also offer checking and money market
accounts. Credit unions' financial powers have expanded to
include almost anything a bank or savings association can
do, including making home loans, issuing credit cards, and
even making some commercial loans.
BENEFITS OF FINANCIAL INSTITUTIONS

1. Risk assessment.
 A financial institution will lay down a detailed plan which will have sufficient risk assessment in the amount of loan
you have decided to take. Not only that, the institution will also recommend the amount you should take up based
on your present and future financial needs and will offer a decent repayment plan which may include automatic
financing from your income or collection of the amount monthly with the specified interest rate.
2. Convenience.
 By seeking the advice of a financial institution before loaning an amount you are making a lot of decisions more
convenient for yourself to make simply because their knowledge base on the area of loaning and finances is pretty
much perfect. A credible financial institution will offer convenient solutions to all your queries about the potential
loan you are about to take from them or any other institute, hence making the entire procedure more convenient.
3. Memberships.
 When you become a regular client of a financial institution to address your financial needs, they are likely to give
you a premium membership for customer loyalty that can help you make your borrowing easier for the future. These
memberships can include benefits such as lower interest rates on repayment, extended repayment time, and
financing of the loan at will instead of by measures taken by the institution itself. This confidence that the two
parties have in each other can make the task of loaning seem a lot less daunting and can improve business
prospects between the two.
4. Security.
 A financial institution will not only ensure that your loaned amount is kept securely in an account but will also make
it certain that the installments you pay back for your loan reach the designated authority safely. For this very reason
it is recommended to clients to opt for credible services such as https://moneybanker.com/ which can connect you
to credible institutions for securing your transaction wherever you are in the world. This security acts as a relief for
the customer to get out of the vibe of pressure that seems to surround the world ‘loan’.
 5. Financial future.

 Sometimes loans stay with you for life, and it simply gets annoying when every month you have to pay a huge sum of
money from your income to the loaning authority. Financial institutions aim to make this procedure of paying back
the money as less harmful to your financial position as possible. It will offer a long term plan and incentivize you to
do business with them by using premium tools such as no taxation on cash withdrawals for the duration of the time
in which the loan has to be paid back.
Risks.
 A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first
resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased
collection costs. The loss may be complete or partial. In an efficient market, higher levels of credit risk will be
associated with higher borrowing costs.