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lecture 3

The document outlines the entrepreneurial process, which includes idea generation, opportunity evaluation, planning, company formation, and growth. It emphasizes the importance of developing a strategy, operating plan, and understanding target customers and business models. Additionally, it highlights essential entrepreneurial skills such as management, communication, financial literacy, and adaptability.

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8 views

lecture 3

The document outlines the entrepreneurial process, which includes idea generation, opportunity evaluation, planning, company formation, and growth. It emphasizes the importance of developing a strategy, operating plan, and understanding target customers and business models. Additionally, it highlights essential entrepreneurial skills such as management, communication, financial literacy, and adaptability.

Uploaded by

fatimanajeeb02
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Lecture 3:

ENTERPRENURESHIP PROCESS
AND SKILLS

Department: City and Regional Planning,


LCWU
Subject : Professional Planning Practice
Course Code: Maj/Crp-310 2(1+1)
Course Instructor: Ms. Iqra Ismail
Enterprenureship
Some experts think of entrepreneurs
as people who are willing to take
risks that other people are not.
Others define them as people who
start and build successful businesses.
Entrepreneurial Process
1. Idea Generation
Every new project begins with an idea.
An idea generation is a description of a
need or the process of creating,
developing, and communicating ideas.
2. Opportunity Evaluation
This is the step where you ask the
question of whether there is an
opportunity worth investing in.
Investment is principally capital, whether
from individuals in the company or from
outside investors, and the time and energy
of a set of people. But you should also
consider other assets such as intellectual
property, personal relationships, physical
property, etc
1. Is there a sufficiently attractive market opportunity?

2. Is your proposed solution feasible, both from a market


perspective and a technology perspective?

3. Can we compete (over a sufficiently interesting time


horizon): is there sustainable competitive advantage?

4. Do we have a team that can effectively capitalize of


this opportunity?

5. What is the risk / reward profile of this opportunity,


and does it justify the investment of time and money?
3. Planning
Once you have decided that an opportunity, you
need a plan for how to capitalize on that
opportunity. A plan begins as a fairly simple set
of ideas, and then becomes more complex as the
business takes shape. In the planning phase you
will need to create two
things: strategy and operating plan.
Strategy:

Target customers

The target customer is the set of potential


buyers who are your focus as you design your
company's solution. The more you know about
them, the better off you are.

Business Model

The business model is your theory about how


you will make money. It involves a definition of
a solution to the customer's need, an
hypothesis about how and how much the
Position

"Position" refers both to how your company is


differentiated from any competitors and also how it
relates to other companies in the value chain. This is
an opportunity to define, at a fundamental level, what
your company will do and what it will not do.

Milestones /Objectives
As a first step toward creating your operating plan,
you should create a set of high level objectives for
your business. This should include:

 Key milestones (product, customer, partnerships,

etc.)
Operating plan

Your operating plan is where you spell out all of the


things that you plan to do and what they will yield for
your business.

Breakdown of operating plan is as follows;

Company timeline

This is a representation of all the major


accomplishments or deliverables that are necessary
for you to achieve your strategy.

Staffing plan

This is the document where you capture all of the


hiring your firm will do (skills, experience and timing).
Budget

The budget is where all the pieces of the


operating plan come together and are
expressed in financial terms. This is a critical
document for managing your business.

Financing plan

This includes the capital needs of the company,


the timing of those needs and the
desired/expected sources of that capital.
Planning process
The plan becomes more manageable when you break it
down into major functional areas.
 Marketing
 Sales
 Research and development
 Operations
 Finance
 People management
 Process infrastructure
You should monitor your budget carefully and continually,
and make adjustments as needed.
Execution

Execution is organized by the core functional areas of the


4. Company formation/launch:

Once there is a sufficiently compelling


opportunity and a plan, the entrepreneurial team
will go through the process of choosing the right
form of corporate entity and actually creating the
project as a legal entity.

5. Growth:

After launch, the company works toward creating


its product or service, generating revenue and
moving toward sustainable performance. The
emphasis shifts from planning to execution.
Entrepreneurial skills
 Management skills – the ability to manage time
and people (both oneself and others) successfully
 Communication skills (e.g. the ability to sell ideas
and persuade others)
 The ability to work both as part of a team and
independently
 Able to plan, coordinate and organize effectively
 Financial literacy
 Able to research effectively (e.g. available
markets, suppliers, customers and the
 Self-motivated and disciplined
 Adaptable(flexible)

 An Innovative and creative thinker


 The ability to multi-task
 Able to take responsibility and make decisions
 The ability to work under pressure
 Perseverance

 Competitiveness

 Willingness to take risks (or at least not risk


averse)
 Ability to network and make contacts
In addition to those more general skills listed
above, other more specific or business related
skills, will be of use to entrepreneurs, these may
include:
 being able to draw up a business plan for a new
venture
 being able to market and sell a new product or
idea
 financial skills, such as book-keeping and
calculating tax
 awareness of intellectual property and possibly
patent law

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