Corporate Learnings

Creating Entrepreneurial Venture
Business Planning Process
Environmental Analysis - Search and Scanning
Identifying problems and opportunities
Defining Business Idea

The Entrepreneurial Process

Involves finding, evaluating and developing an opportunity by overcoming the forces that resist creating some thing new.

• Phases in venture creation:
• Identification and evaluation of opportunity
• Development of business plan
• Determination of required resources
• Management of the enterprise

Identification and evaluation of opportunity phase:
o The process by which an entrepreneur comes up with an opportunity for business venture.
o Requires skill, foresight and ingenuity
o Keeping in view competencies, capabilities and resources while identifying the idea.
Identification and evaluation of opportunity phase:
o Opportunity Assessment
o Creation and length of opportunity
o Real and perceived value of opportunity
o Risk and returns of opportunity
o Opportunity versus personal skills and goals
o Competitive environment

Sources of identification of an opportunity:
• Observation
• Market Characteristics
• Conversion of waste in to wealth
• Adoption of technology
• Socio-economic changes
• Trade fairs
• Trade and professional journals
• Publications of government departments

Observation
Ø Most important sources of getting a business idea
Ø Non availability of particular articles may develop an industrial unit
Ø Market Characteristics
Ø Unfulfilled demands
Ø Demand for fast food etc.. growing every day
Ø Demand of festival gifts both social and corporate on the rise

Ø Socio-economic changes:
Ø Changes in socio economic status of people
Ø Preferences for branded products, beauty parlors, cell phones etc.
Ø Trade fairs:
Ø Visiting industrial and trade fairs
Ø Trade and professional journals
Ø Publications of government departments
Ø Technological survey reports

Evaluation of a business opportunity:
Major Criteria for Evaluation
Ø Compatibility with promoter
Ø Compatibility with Availability of financial and human resources with the entrepreneur.
Ø Government Regulations
Ø Project to follow government norms (rules and regulations)
Ø Market
Ø Assured market for product and services
Ø Raw Material
Ø Risk:
Factors to be evaluated
Ø Market stability in economic cycle
Ø Technological risk
Ø Competition from imports
Ø Legislation and controls
Ø Seasonal demands
Ø Predictability of demand