Module 2: The ENTREPRENEURAL PROCESS Flashcards
required
to start a business is difficult for anyone. Many people have reasons for wanting to be an entrepreneur, many say what should be done, and only a few do what is required to get started.
The entrepreneurial process
are for those who decide to take one step
forward to achieve success. It is a long-term process in which visionaries mustcontinue to work to transform their environment and their future.
The entrepreneurial culture and spirit-
is a process of pursuing a new venture that
involves more than just problem-solving in a typical management position.
entrepreneurial process
refers to the creation of a new business entity
as a means of providing work for an individual, or a group of individuals, with a diagnosis of a developmental disability.
term Entrepreneurial Model
consists of five phases: idea generation,opportunity evaluation, planning, company formation/launch, and growth.
The entrepreneurial process
- refers to the establishment of a new business
entity to employ an individual or group of individuals with a developmental disability.
The term Entrepreneurial Model
- is one of several work options available to people with disabilities as part of a continuum of supported employment.
Entrepreneurial Model
a professor at Thunderbird School of Global Management,
Robert Hisrich,
-author of several books on entrepreneurship, introduced the model for the entrepreneurial process. This model defines the various elements and events that occur during the entrepreneurial process.
Michael P. Peters,
The model identifies three controllable aspects of the entrepreneurial process
that can be evaluated,
influenced, shaped, and altered.
are the three components. The founder or entrepreneur is the most important component.
The opportunity, the resources, and the team
-is a process of mobilizing people and resources for innovation. The fit between the entrepreneur/team, the product concept, the opportunity, the resources, and the entry strategy is critical to entrepreneurial success
Entrepreneurship
- is a continuous
process that an entrepreneur must follow to plan and launch new ventures more efficiently. Although it is natural to think of the first steps as taking place sequentially, they take place in parallel.
Entrepreneurship
The FIVE STAGES of the Entrepreneurial Process
- Idea Generation
- Opportunity Evaluation
- Planning
- Company formation/launch
- Growth
-Every new business starts with an idea. In our
context, an idea is defined as a description of a need or problem of some constituency, along with a concept of a potential solution.
Idea Generation
This is the stage at which you determine whether
there is an opportunity worth investing in. Investment is primarily capital, whether from within the company or from outside investors, as well as the time and energy of a group of people.
Opportunity Evaluation
Once you’ve decided on an opportunity, you
must devise a strategy for capitalizing on it begins as a relatively simple set of ideas and becomes more complex as the business develops.
Planning
During the planning phase, you will need to develop
two things:
a strategy and an operating plan
Accepted Accounting Principles are followed.
▪ Sales
▪ Research and development
▪ Operations
▪ Finance
▪ People management
▪ Processes & Infrastructure
PLANNING STRATEGY
There are four main areas of strategy:
a. Target customers
b. Business Model
c. Position
d. Objectives
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.
Target customers
is your theory about how you will make money. It
involves a definition of a solution to the customer’s need, and a hypothesis
about how and how much the customer will pay for that solution.
Business Model
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.
Position
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 (prototype, product, customer, partnerships, etc.)
▪ Share or penetration into your chosen market
Objectives
is where you spell
out everything you intend to do and how it will benefit your company. Marketing, selling,
engineering, and other areas
of
the
business will be covered.
OPERATING PLAN
Begin with your strategy and break down what needs to be done to
achieve this is the foundation of your plan.
goals
If you craft/draw your business plan, you will notice that there are several
plans within one larger plan.
a. Company timeline.
b) Staffing plan
c) Budget
. This is a representation of all the major
accomplishments or deliverables that are necessary for you to achieve
your strategy.
Company timeline
This is the document where you capture all of the hirings
your firm will do (skills, experience, and timing).
Staffing plan.
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.
Budget
Once there is a sufficiently compelling
opportunity and a plan in place, the entrepreneurial team will go through the process of selecting the appropriate form of business entity, which entails establishing the venture as a legal entity
Company formation/launch
Following the launch, the company focuses on
developing its product or service, generating
revenue, and achieving long-term success. The
emphasis shifts away from planning and toward
execution.
Growth
