2013 06 22 seoul city hall global center sgc business planning guide short summary

8/11/2019 2013 06 22 Seoul City Hall Global Center SGC Business Planning Guide Short Summary

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Entrepreneurship & Business Planning

June 2013

Company Advisor & [email protected]

[email protected]

Sean Watts

Consulting experience includes work with:Many new business start-ups & expansions in Asia

(restaurants & pubs, to fitness centers & financial consultants)Applied Materials-Worlds largest semiconductor producer

Korean Ex-Minister Science & Tech AeconKorean Ex-Ambassador to UN USA-CIAFederation of Korean Industries Daewoo TelecomSamsung Electronics Egyptian Embassy

Original owner of Koreas 1stSolely Foreign Owned BarSean Watts:-advises & teaches entrepreneurship, negotiation, & management to SMEs & at Yonsei, Koreas top private university-helped increase revenues of Applied Materials up to US $1.08 Billion within 1 year & would love to help you too!-was based in Asia from early 1990s, worked with 128 countries, and is originally from the Toronto, Canada area-helped set up 600+ international contracts for one organization alone, & factories in China & business offices throughout Asia

-actively helps entrepreneurs with government programs, offices abroad, ad tips, & free student work / research projects


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Make a Business Plan:Simply Provide Answers to any 00~50 reasonable questions

The sooner you can answer them, the sooner you should start your business!

You know details, others do not. Write it down & discuss it with others to test the concept.-prep for next week

Concrete written ideas showing 5Ws & How (Who, what, where, when, why aka 4Ps & SWOT analysis)

What exactly is your business? Overview? Mgmt? Whats your product /service?Who will use / Why theyll use your prod/service & not competitors? Key relations?How much will you charge? In yr 1, 2 & 3, whats expected sales? Profit? Assets?Why invest? If investors are needed, how much $? What will you give in exchange?

Where? How will you operate? Staff? Train? Market? Ensure competitive advantage?The Biz Plan is a game for you & others: X / (Seek feedback & advice)

Allows review of details-did I miss anything? is this smart?

response btwn written words vs ideas/talk

Story of what the business is & will be

All costs, profits, marketing plans, etc

Description of financing & earnings

Collection of ideas to track & follow-up!!!

A way to track big picture & complexity of operations (Bilderberg Group)

For help developing your business: [email protected]


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P l a n T o S u c c e e d

Research:Consumer AnalysisCultural AnalysisMarketing PlanFinancial PlanCompetitorsGovernmentOperationsIndustryTrends

Sales

30 Second Summary (video?)

Business ProfileProduct / Service DescriptionCompetition & keys to successMarketing Report (be careful of SRC, survey, & adapt)

Long Term ObjectivesSWOT Analysis (be careful to have action)Survival Plan Till Break EvenOperationsPlanStart-up RequirementsAction PlanFinancial StatementsAddendum



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ITS BEST TO MAKE A 2 MINUTE YOUTUBE VIDEO of yourself.

Make the video An intro presentation of your company & business idea.

Review other YouTube business presentation examples to get ideas.Learn from YouTube videos of SHARK TANK business presentations.http://abc.go.com/shows/shark-tank

https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1

Interesting business idea: LIPSTIX REMIX Re-Color your lipstick, Recover lipstick in the bottom of the

tube and repair broken or melted lipstick. Just Mix, Melt, and Mold www.lipstixremix.com

If you are not good at making videos- consider how these boring videos changed and became great by using asimple app to develop and add music:

Link to show how tech can develop your videos: http://youtu.be/sP4NMoJcFd4views: 25,260,174 now.We're born "as is"... and with an amazing ability to develop if we use resources wisely, especially given theincredible times and opportunities we have today: Good luck with development this summer all!!Dayum original: http://www.Youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDY andRemix: http://www.Youtube.com/watch?v=_Z1Krfww5eE Five Guys Burgers and Fries Review ww.youtube.com
http://abc.go.com/shows/shark-tankhttps://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1http://www.lipstixremix.com/http://youtu.be/sP4NMoJcFd4http://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/http://www.youtube.com/http://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?v=_Z1Krfww5eEhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://www.youtube.com/watch?annotation_id=annotation_256224&feature=iv&src_vid=_Z1Krfww5eE&v=zGkHRa64sDYhttp://youtu.be/sP4NMoJcFd4http://www.lipstixremix.com/https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1https://www.youtube.com/results?hl=en&gs_rn=14&gs_ri=psy-ab&tok=IdrAvXGOonILEp2MvE1osg&cp=7&gs_id=p&xhr=t&q=shark+tank&newwindow=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.46751780,d.aGc&biw=1081&bih=1115&wrapid=tljp1369196357624012&um=1&ie=UTF-8&gl=KR&sa=N&tab=w1http://abc.go.com/shows/shark-tankhttp://abc.go.com/shows/shark-tankhttp://abc.go.com/shows/shark-tank


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Main Points To IncludeIn discussions & presentations FINAL WEEK for SGC!

Try to present as much about your business idea as possible within 2 minutes

& leave 1 minute for suggestions

MAKE SURE TO INCLUDE WITHIN 2 MINUTES:-Show your contacts / email / website ~ hand out name cards (& not just names on name cards)

-Exact business & exact prod/service: Dont assume others know! Teach people the basics, then ask if its understand.

-Show detailed competitive advantage / benefits to customers (but not competitors names Company A)

-Show benefits for investors(financials, ROI, and facts for support, etc)

-Show market analysis / References (such as target customer analysis, market size, demographics, etc)

-references -build credibility, promote yourself & network ~Guanxi.-Show references & info for customers view / language or as much as possible

-Show SWOT (with statements about how to benefit from each)

-Show financials: Income Statement, balance sheet & cash flow statements for 2+ years, & start up financial requirements!Sales = 100%, COGS=80%, sales=7.5%, gen& admin exp=5%, interest exp=2.5%, tax@30%=1.5%, net income= 3.5%

-Get info from suppliers, real estate agents, newspaper classified ads, even competitors!

DONT RAMBLE OR GIVE SPEACHES~PROMOTE YOUR BUSINESS & Get Feedback!



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1: Put Everything In WritingIdeas, Lists, Goals, Biz & Comp Plans, Contracts

2: Customers who, where, how to find?Can you afford to promote? Competitors? SRC?

3: Organize & plan time effectivelyQ4, make lists & goals

4: Surround yourself with & learn from Good People,Staff, Advisors, Board of Directors, etc

5: Understand business, customers competitors,culture, & the market? Get research analysis or people that know



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P l a n T o S u c c e e d

Research:Cultural AnalysisMarketing Plan

Financial PlanCompetitorsGovernmentOperations

IndustryTrendsSales

30 Second Summary

Business ProfileProduct / Service DescriptionLong Term ObjectivesCompetition

SWOT AnalysisSurvival Plan Till Break EvenMarketing PlanOperationsPlanStart-up RequirementsAction PlanFinancial StatementsAddendum



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BUSINESS PLAN OUTLINE


9/781 - 9For help developing your business: [email protected]

Biz Plan Example

2

minutes


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30 Sec Summary:

Cover Page: Business Name: Your Name: Date:

Executive Summary: Key points to 1stexplain the business, thendescribe & promote it to the reader

Includes: Brief description of your business / Who you are and why

your background, experience and education (given this market)make this venture more likely to succeed / Key business objectives /

Key info who are the customers, major competitor, industry

trends/Selling strategies/Gross revenue forecast/Gross profit

forecast/Net Income/Number of clients/customers/How much

money is needed to start the business and when will the businessbreak even/Be concise and precise and capture the essence of your

business in the Summary-Written last, after the Plan has been

developed-One page preferred, two pages maximum

BUSINESS PLAN

30 Sec Summary

Business Profile

Prod/Serv Info

Long Term Plan

Competition

SWOT Analysis

Survival Plan

Marketing Plan

Operations

Start-up

Action Plan

Financials

Addendum



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BUSINESS PLAN OUTLINEBusiness Profile:

Describe your business clearly. Is this a new business, a franchise orthe purchase of an existing business/Type of business retail,manufacturing, service/Location of business/

Product(s) you will be selling and/or services you will be providing/Type of business organization (proprietorship, partnership,

incorporation)/Ownership names of owner(s) and percentage/History of business (if applicable)/Relevant dates start-up,

expansion/How you determined that this business will be appropriate, profitable

and possible/What you have done, to date, on the development of your business.Steps you have taken/When you expect to generate the first

revenues/Is the business year-round or seasonal? If seasonal, whatwill you do during the off-season

Management -Outline the credentials of the owner(s) /Remember toinclude the 3Es: /Education/ Experience/ Expertise -Also provide

brief description of associates, support personnel and networksupport

BUSINESS PLAN

30 Sec Summary

Business Profile

Prod/Serv Info

Long Term Plan

Competition

SWOT Analysis

Survival Plan

Marketing Plan

Operations

Start-up

Action Plan

Financials

Addendum



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BUSINESS PLAN OUTLINEProduct and/or Service Description: complete description of the product(s) service(s)

and the benefits to the customer/Many businesses have 1 and 2 products or services.Identify these as 1 or 2 and provide descriptions

Long Term Objectives: vision of business in 3 to 5 years

Marketing Plan: GET & DESCRIBE RESEARCH about your business marketreports, market analysis is vital! Show what you found, and how it relates to andjustified your business/Potential customers how many have you talked to, what didyou ask, what did you find out, how many are likely to buy (develop surveyquestions)/Market segments (geographic, demographic, product/service usage)/Targetdemographics / potential customer group. Be specific and list as many characteristics as

you can. /What are their needs, how many customers are there? Trends in the industry.Is it in growth or decline. /Outline the immediate and long term outlook of yourindustry, its size and potential for growth/Features of your product(s) service(s)/Whatdistinguishes you from your competition? What is your competitive advantage yourunique position in your industry/Your competitors direct and indirect/Their strengths,weaknesses, opportunities, threats & show how you will take action to develop fromthese points!! Show their market share (if available)/Their competitiveadvantage/Pricing strategy. What price will you change? How did you arrive at that

price? Will you offer discountswhen where, why? How does your pricing strategyrelate to your target customer group(s)?/How are products delivered, i.e. distributionnetwork /How will you advertise and promote your business

SWOT Analysis: Outline, to the best of your current knowledge, all of the factorsidentified by a SWOT Analysis and how you intend to deal with them (e.g. usestrengths, fix weakness, seize opportunities, counter threats)

BUSINESS PLAN

30 Sec Summary

Business Profile

Prod/Serv Info

Long Term Plan

Competition

SWOT Analysis

Survival Plan

Marketing Plan

Operations

Start-up

Action Plan

Financials

Addendum



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Sales Plan -Think Mutual Benefit

Whats the benefit to users?Needs & wants of consumersNote belief & cultural differences

Establishing your NETWORKING goalsGet your name out there, find strategic alliances

It helps to have a polished :30 introductionLocate and list in your plan one event per month

Keep up with your contactsOnce contact is made, try to stay in touchClippings, news items, referrals, etc.

Organizing your networkUse technology to make keeping in touch easyTry to introduce contacts that can benefit each other

Mastering the cold call and networking eventsStart by warm callingSet event goals for yourself & budget for them!



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Do Market Research, Get Market Analysis Reports & Advice& Understand Customers Values & Cultural Differences!!Good marketing is mostly about researching the customers & giving them whatthey want. Most people misunderstand and think its making something sexy.Build a solid foundation of facts upon which to base your businessApply your market research to your business decisions

Find & Use Triggers: What makes consumers go wow, ah, yeah, mmm, me too,-then use that trigger consistently in your marketing

Be on the lookout for ways to diversifyCreate strategic alliances & Cultivate referral sources

Leverage the data as the business evolvesIncrease market share, Grow the business (trading area and/or offering)Delegate, Outsource, & use word of mouth

INFO IS POWER & WEALTHcollect it, gather it, test it, get advice.

Marketing Plan



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REVIEW OF TRANSACTIONS

ExchangeA B

DeliveringValue Communicating

Value

CreatingValueValueand beneficial

relationships

Noise (SNS)

Noise (SNS)Noise (SNS)

4Ps & SWOT vs 5Ws & H

[email protected]

Be Mutually Beneficialvs Greedily getting what you want


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Professor Watts Marketing Impact Factor

Who cares what you think? No one! Test others!Research & learn, properly (SRC),

what they think, like, & what makes them say

Ah, Oh, Yeah, etc.Find what words, pictures, smells, services, etc associate to your

business & use these words to promote.

Make sure to relate & impact customers.

**Dont change ads for 3 months.

Be prepared, consistent, patient & persistent.



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USE THE WEB-websites show people your biz, payment you accept, operating hours, etc.Facebook.com MySpace Cyworld Daum OkOkOkOk PhotobucketKorea Times Craigs RokOn Naver Eloquence Daves ESL10 Magazine English Spectrum Seoul Scene Korea Herald


x
http://void%280%29/http://void%280%29/


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AdvertisingWORLDS PERFUME No.1

80/20 Rule

www.contact.com Kangnam

[email protected]

A id C lt l Mi t k


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Marketing Translation Mistakes

USA Body Bags = Chinese &German for knapsack

Gerbera baby food maker= French word for vomiting.

Waterpikuses another name in Denmark.Pik = male genitals & water = vandvandpik is a term for the morning erection

Pepsiwas sued in India for glorifying child labor on TV.Cricket team winning huddle has a boy serving Pepsi.

German words break = destroy & Latte = erection"morning latte" =waking up in the morning with an erection!so a morning latte break is destroying that erection.

Avoid Cultural Mistakes


Back-Translate, Survey, & Recheck to Avoid Mistakes

Gangnam Style= PROOF Net Social Media & Video made world smaller-Marketing must adapt!


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1 - [email protected]

PSY & Acceptable MktgClowns & PSY fit mainstream-friendly role of male jester, & thanks to PSYs decidedly

non-pop star looks, in a very non-threatening package. Combine what people like - funny

music video, goofy dance, & a catchy tune - comical & non-threatening.Compare: Bruce Lee, Jet Li, Rain, Girls Gen, etchttp://www.racialicious.com/2012/09/20/psy-and-the-acceptable-asian-man/

Gangnam Style= PROOF Net, Social Media & Video made world smaller-Marketing must adapt!


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Marketing Strategy

M

arketingM

ix (4Ps)

Product Price

Place Promotion

Positioning- designing companys offer& image to occupy a distinct & valued

place in customers minds (Kotler, 2003)

It takes time to build a brand ~ 3+ months

survey customers for feedback & reactdont change basic message often

find the ah factor & use it always

AdvertisingPersonal

Selling

SalesPromotion

PublicRelations


P

romoM

ix

80/20 Rule

N


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Promotional Methods

80/20 Rule

NFor help developing your business: [email protected]

Steps to Personal Selling


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What Is Your USP & Competitive Advantage?

Unique Selling PropositionWhat attracts customers away

from the competition?

Compare your business offer tocompetitors.

Are you at a cost advantage or

disadvantage?

Quality

Location

Selection

ServiceSpeed/turnaround

Price

What you value may differ from whatcustomers value. Learn the difference.


Old N B i D l


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Old Way of Development:

Trade shows & fees Send top executives to event Send expensive booth to event Give away many toys/gadgets Collect many name cards

Attend 1~2 events/year Cost: $61,500 Expected Sales $600,000

[email protected]

Old vs New Business Development

Tech Way -use web, govt & others: Share TC/web/office sites Send 1/few staff many places 24-7 promo(web, facebook, twitter) Arrange many events/trip Get VTCs promoting you by word

of mouth internationally Cost: $16,820!Contracts Negotiated $80 million

Contracts won = $21 million

vs



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90% of some embassies only develop businesses

Often less than 5% of embassy work is on immigration / passports

Most large cities in the world have embassies & consulates-use them!

Business with Government-Virtual Trade Commissioners (VTC)

[email protected]



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BUSINESS PLAN OUTLINEOperations: How does business operate you go to clients, clients come to you,

retail environment etc. /Will you be a sole proprietor, a partner or will youincorporate? If a partner, describe the relationship, the reason for thepartnership, and the ownership percentages/Describe any special laws or

regulations that affect your business/Include names of your lawyer, accountantand bank/Operational details of the location you have chosen/Leasearrangements/cost/details. By-laws, parking. /If a home based business whatare the advantages and why it will work/Suppliers (if applicable) pricing,discounts, credit terms offered /Equipment requirementsoffice, production.Will you lease or buy/Production details (if applicable)automated ormanual/Out-sourcing, sub-contracting/Will you need employees? How many,

what skills, etc.?Start-up Requirements: Fixed assetsequipment, furniture, vehicle, etc. Thecost (or value if they are already owned personally and are being brought intothe business). How much working capital is required?

Action Plan: Should cover first three months or more/Also outline specificsteps/actions planned with planned start/finish dates, estimated total time/costsconsumed and, anticipated results Specifics on when you will start the

business and the actions you will undertake to launch your business andintroduce your company into the marketplaceFinancial Statements: Generally expected to include: 2 Years Sales Forecast2 Years Income Statement & 2 Years Cash Flow ForecastAddendum: Marketing materials, Survey analysis, Owners resume,Other information supporting business idea(s)

Articles supporting identified market trends

BUSINESS PLAN

30 Sec Summary

Business Profile

Prod/Serv Info

Long Term Plan

Competition

SWOT Analysis

Survival Plan

Marketing Plan

Operations

Start-up

Action Plan

FinancialsAddendum



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Operations Plan:

Its a business . . . run it like oneGet dedicated phone /fax lines with dedicatedvoice mail

Incorporating business (only if necessary)Seek professional (legal & tax) advice

Open a bank account record & keep receipts of everythingLong before you need it & ask lots of questions about feesRegister for a tax number

Take advantage of the offset / $30,000 per annum x 3 years

Seek insurance advice

Even if you dont buy, understand the culture, risks &costsKnow & understand local bylaws (zoning, etc.)If renting, are you allowed to run a business at home?Are construction laws met drain in kitchen, etc?



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Find & record 2 or more years financial statementsKnow where you stand relative to plan at all times

Arrange for bookkeeping or set up accounting system

Plan your revenue projections below expectations

Plan sales cycle longer than you believe it will take

Plan your expenses higher than you believe theyll beKeep up with your data entry

Work backwards from your ideal income

Review competitors prices & costs, talk to their suppliers, check online ads for

prices and activity

BE RESOURCEFUL, THOROUGH & REALISTIC!

Financial Plan


I St t t


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Income Statement


Percentage of Sales:firms commonly measure each item as a % of total sales,Eg. how $1 of sales is used by firm to cover various expenses incurred for sales.

As guideline for manufacturing firms:

80% of $1 of sales covers cost of goods sold12.5 cents of $1 of sales covers operating exp

12.5 cents covers interest exp, & 2.5 cents pays taxes3.5 cents of $1 sales is net income

% of sales method is useful when comparing a firm to other firms in industry.

B l Sh t


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Balance Sheetas of Dec 31, 2009



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Cash FlowStatement


Summarizes where money camefrom (inflow or cash receipts) &where it went (outflow or cashpaid).-records cash & cash equivalentsentering & leaving a company.-allows investors to know how a

company's operations are running,where its money is coming from &how its spent.

Breaks cash flow into 3 categories:Operating, Investing&Financing


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1 - 41For help developing your business: [email protected]

Additional Material

-Product Samples, Images, etc

-Marketing Ads, Fliers, YouTube Videos-Price lists, Menus, etc-Maps of your location showing competitors &

customers, suppliers, etc-Population density reports, GDP/capita for specific

neighbourhoods, demographic reports, etc-Resumes showing you are built for the business

The sooner, you answer most reasonable questions,

& checked your SRC for customer acceptanceSTART!!


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Staff Well ~7 Signs for Super Staff

1. Ability to Deal With Risk -progress towards goals & makedecisions when lacking one or several critical resources or data.

2. Results Oriented - responsible & gets jobs done with commonsense, able to resolve problems.

3. Energy & enthusiasm- produces above expectations withoutsupervision & is self-motivated.

4. Growth Potential - willing to accept increasing responsibility,trains & coaches others.

5. Team Player knows she contributes together with others &accepts accountability & ownership.

6. Multi-tasking Ability flexible & can perform more than onerole & willing to do grunt work

7. Improvement Oriented - challenges things constructively &always tries to learn more

Be surrounded with people better than yourself Youll grow!



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Costs of getting good staffStaff are the single most important factor relating to success:

Get & retain the best!Note: Not everyone values money first!Costsof changing an employee = 70% of 1 year salaryDo-It-Yourself & Advertise: Craigs List, 4Oks, Kijiji, etc"Hire the Pro"it will cost you, but it may pay off

Contingency Searches.pay only if you hire someone from themContract Recruiters.$35 to $70 per hour

Researchers.$50 to $100 per hourRetained Search.

How do you choose a retained search firm?ask people who know players.

knowledge & experience of search firm in your industry is important.

The price? usually 1/3 first-year compensation (base & bonus).



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Surround Yourself with Good People

People, especially staff, are the most importantkey to success

Develop your social capital & network

Get & listen to experienced, trusted mentors,advisors, board members, etc

Get & retain the best!


Time Management


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Time Management

80/20 Rule

Be flexible 70% rule Henry Kissinger Leave time for distractions and interruptions

Effectiveness vs. efficiency Doing the right thing vs. doing things right

Prioritize Vilfredo Pareto find that critical 20% Categorize tasks (income producing vs. not) Theres only one number one priority


anage your time your love & money wisely


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M

anage your time, your love, & money wiselyHoney-do:

Avoid problems associated with Honey, can you do this? Honey, can you do that?Make a daily list of everything to do - then prioritize daily crap-Q4

Know your dreams & take daily steps to get them before wasting time

Sheep work for others, wise people work for their love &get money to work for you if you dont want to love an investment,(if you dont want to spend required time to become an expert in yourinvestment field, find someone that does, with facts, history & questions

Not Urgent

Important

Not Important

Tasks to accomplish your dreams

Daily important activities

Important Social Tasks:

Play, Sleep, Study, Friends

AccidentsHelping friends and family

issues

Things that you forgot to plan


Not Urgent + Not important =Not going to be done

Avoid things in this area tellpeople that ask, you will help them or join

them after they help you finish your tasks inQ1 & 2 first

Answering spam email & texts, etc

Avoid things in this areatell people that ask, you will help them orjoin them after they help you finish your

tasks in Q1 & 2 first

Q1Q2

Q4Q3

Things most important in life

NOTIMPORTAN

T

IMPORT

ANT

Urgent


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Column AIn the washroomSitting at red lights

EatingWaiting in linePlaying telephone tagIn meetingsOpening junk mail & Texts

Column B6 months8 months

2 years5 years6 years

7 years8 years

How do we spend our time?

Study conduced by M. Fortino



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M

anage your time, your love, & money wiselyPlan for long term dreams-in writing, then prioritize daily crap-Q4Know your dreams & take daily steps to get them before wasting timeSheep work for others, wise people work for their love &get money to work for you if you dont want to love an investment,(if you dont want to spend required time to become an expert in yourinvestment field, find someone that does, with facts, history & questions

20 yrs: be on a boat, &properties & occupied making a difference, advising, consulting, teaching part time globally

10 yrs: have enough rental properties for family & investment requirements, be teaching, consulting & advising, be

active with associations & memberships

5 yrs: detailed items that will produce results that definitely lead to your goals



6 months: detailed items that will produce results that definitely lead to your goals



1 month: detailed items that will produce results that definitely lead to your goals

This info is vital to your success

Map your LONG TERM dreams in writing since everyone forgets the small things

-its the small forgettable things that makes you happy and successful


Start

Never

ending

In half that time, I need



In half that time,

My dream is, in

Lipstick


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PortableFunhouse

ScraperBroom

Grease

WeddingDressRentals

Clean Bottle

ClubReservations

PortableKids ChairNose Filters Safety belt

Safety switchFrom Nose Filters, to Folding Furniture, to Portable Fun

usiness Plans are yourKey to a FabulousFuture

pRemix

(combine

leftovers)

Success Stories O i diff t l


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Success Stories- Overcoming different values

Tesco partnered Samsung -quality staff & reputation. -

localized management CEO =ex-Samsung. (only 6 foreigners)Tesco intro as Korean cautious of changes &Western practices.2 billion pounds sales in Korea in less than 10 yrs

(64 years+ for 2 billion pounds of sales in UK)

Carrefour ~French management & culture

Success depends on selling to Korean customers.

Koreans know best what products & offerings will work!Work with & Listen to Koreans!

Beware of SRC!! Get good people around you & use them ~ Staff & Advisors


Managerial Styles of Korean Companies


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Formal Structure

Informal Structure

Organizational Structure

Leadership and Decision Making

Motivation Communication

Managerial Processes

Recruiting and Training Reward and Promotion System Severance and Retirement Trade Unions

Human Resource Management

Managerial Styles of Korean Companies

[email protected]


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K-Type Management

ClanManagement

Harmony-Oriented Cultural

Values

Compensationbased on

Seniority andMerit RatingPaternalistic

Leadership

Top-downDecision

Making

[email protected]


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1. Centralization2. Formalization

3. Hierarch

Clear-cut Job

Description

Formal Structure

Informal Structure

Organizational Structure

Dominate theManagement

Power

Hyul-yun

(FamilyOwnership)

Ji-yun

(Region Related)

Hahk-yun

(School Related)

HIGH

LOW

[email protected]

Managerial Processes (Planning, Directing, Organizing, Controlling)


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Leadership and Decision Making Motivation Communication

a age a ocesses ( a g, ect g, O ga g, Co t o g)

Leadership & DecisionMaking:

Manage on the basis ofprinciples governing thefamily or clan system

The father = unquestioned,respected, absolute power &Full Responsibility to feedthe family and to decide thefuture of his children

Top-Down Decision-Making

Inhwa: Harmony betweenUnequal in rank, power andprestige

Make decisions with theconsultation of subordinates:Sajeonhyupui()BUT, Korean Subordinatesare reluctant to express theiropinions

Motivation

Highly motivated, Enduringlong work days

The Key Confucian Values:Diligence and Harmony ->Work ethic high

Extrinsic Factor (Wages,Working conditions, jobsecurity) > Intrinsic Factors(Creativity and Achievement)

Communication

Hierarchical Relations

Upward formalcommunication > horizontalInterdepartmental lines dueto high centralization ofauthority

Culturally do not shareinformation with othersexcept within close personalrelationship

Good at Free

Communication on InformalOccasions

[email protected]


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Recruiting and Training Reward and Promotion System Severance and Retirement Trade Unions


Twice a year Reputable Universities English Proficiency Tests for Knowledge Personal Interviews Various Experiences

RecruitOwn employeeTraining CenterTrain

[email protected]


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Recruiting and Training

Reward and Promotion System Severance and Retirement

Trade Unions


Reward &Promotion

Performance

Seniority Family Ties (

)

School (

)

Region ( )

[email protected]


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Reward and Promotion System

Severance and Retirement Trade Unions


Work in OneCompany Till

Retirement

Higher Rate ofJob-hopping:

Change jobs fairlyfreely

CHANGE

[email protected]


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Reward and Promotion System Severance and Retirement

Trade Unions


After the

KoreanWar American-

style Labor-related

Legislation

1960 Government-

dominatedFederation ofKorean TradeUnion(FKTU)

emerged

1960s 1970s

Park ChungHeeGovernment:Special Act onNationalSecurity 1971

Restriction onany LaborConfrontation

The Political

Reform of 1987 GovernmentIntervention inLaborManagementRelations wasRemoved

GrantedWorkers Rightto Unionize

[email protected]


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1 - 59Source: Tarun Khanna, Jaeyong Song, and Kyungmook Lee (JulyAug 2011)The Paradox of Samsungs Rise, Harvard Business Review, Accessed from HBR.ORG


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1 - 60Source: Tarun Khanna, Jaeyong Song, and Kyungmook Lee (JulyAug 2011)The Paradox of Samsungs Rise, Harvard Business Review, Accessed from HBR.ORG

Please take notes ask questions & share advice


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Please take notes, ask questions, & share advice.Also evaluate this presentation and take notes

P

resent your business plan at the end of this 2 week program.

While presenting a business, show:etails-make sure the listener knows your contacts & products/service;

Integrity-know your facts; reputations are made in seconds; protect it!

Passion-get attention. Youll be better than others, if you love it;Experience- show you can do what you are doing;

Knowledge-be aware of key facts & people /players related;

Skills-tech, marketing, public relations, planning;

Leadership-show you can work with others;

ommitment-investors and customers want to connect with stability;

Vision-see & understand your environment, & relation to the world.

Points to Ponder When Starting a Business


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I-Know yourself, goals, passions, talents, values, & your environment (society, laws,trends) & work mutual beneficially. "Pay it forward". -love doing it... Dont follow as "sheep."

g

Imagine: a pile of sheep supporting billowing clouds of dreams, with successful people happily

sculpting each cloudy dream. On a top cloud (dream) is Bill Gates, surrounded lower down, by

entrepreneurs (microloans in Pakistan, Mark Zuckersburg, Facebook, etc).

B-Be passionate in what you do & want it.E-Extend your comfort zone. try new things, stretch your limits & continually improve.L-Lies & luck don't work -be true to yourself. Luck is created with hard work, doing something eachday to chase opportunities & developing a network ."10,000 hour rule

I-INSTALL GOALS, long & short term (Q4) written goalsE-ENJOY DEVELOPMENTS, WORK & "HARD WORK."

V-VARY-VERY~ efforts (reading, environment, networks, & imaginative developments)To be persistent, have goals that you're passionate in & believe :1. Create a clear & accurate goal;2. Have a clear, written, constantly upgraded plan;3. Immerse yourself in it;

4. Surround yourself with the best, talented people;E-Expect & accept obstacles, NO, etc

www.twitter.comwww.elance.com

www.youtube.comwww.humanmetrics.com

www.developage.com/blog

http://khanacademy.desk.comwww.internetworldstats.comhttp://technomarketer.typepad.com

www.tradecommissioner.gc.ca/eng/our-services.jsphttp://global.seoul.go.kr/index.do?lang=ENG&mode=H

Entrepreneurship Facts or Fiction??


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Entrepreneurship Facts or Fiction??Businesses Fail if they Fail to Plan

90% of new businesses fail in 1styear 70% of new businesses fail in 2ndyear 40% of new businesses fail in 3rdyear

New businesses usually require long hours & very hard work! Its not 9 ~ 5pm

Successful people often lose initial investments

- mostly due to poor planning & parochialism!!


GEM- http://www.gemconsortium.org/docs/263/gem-2007-global-report

New Businesses Likelihood of Survival


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rovince:

Ontario 86.3Quebec 85.7Alberta 85.2Newfoundland 81.5Prince Edward Island 83.1

Nova Scotia 83.3New Brunswick 83.2Manitoba 84.0Saskatchewan 84.5British Columbia 85.5

Industry:Finance and Insurance 89.2Real Estate Operators &Insurance Agents 88.6Business Services 88.1Fishing and Trapping 89.4Agriculture 85.4Mining, Quarrying and Oil Wells 87.2Manufacturing 87.5Construction 85.4Transportation and Storage 85.9Communications and Other Utilities 85.5Wholesale Trade 88.0Retail Trade 84.8Accommodation, Food and Beverage 83.5Other Services 80.9

New Businesses Likelihood of Survival- Probability Estimates at Mean, Prov & Ind

Probability values indicate that there are only modest differences in the survival rates of new firms across provinces.

The highest success rate with likelihood of survival is 86% inOntario & the lowest is 82%.Finance & insurance has the highest survival rates 89% with fishing and trapping while theresidual group of other services-including amusement & recreational services, & personal & household services=82% .


2/3 survive at least 2 years1/2 survive minimum 4 years


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Reasons Behind DiscontinuingBusinesses

y1/3 were successful at closure1/3 of firms that discontinued

-they merely changedform of business

or ownership

Key:Plan &

ResearchMarket

-42 countries x 2000 adults surveyed each /

minimum~150,000 surveyed

-by London Business Schoolwww.gemconsortium.org/docs/263/gem-2007-global-report

Owner Profiles Before StartingNew Business


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Education

Work

Experience

# Years

Worked

20+ Years

15%

Never

34%

Large firm

(1000+ staff)

10%

New Business

Vocational School

4%

Some college

24%

College

diploma35%

Advanced

Degree

18%For help developing your business: [email protected]


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KNOW & USE KOREAN SOCIAL NETWORKS:
http://section.blog.naver.com/http://blog.daum.net/http://yozm.daum.net/http://www.egloos.com/http://www.tistory.com/http://global.cyworld.com/http://global.cyworld.com/http://www.tistory.com/http://www.egloos.com/http://yozm.daum.net/http://blog.daum.net/http://blog.daum.net/http://blog.daum.net/http://section.blog.naver.com/http://section.blog.naver.com/http://section.blog.naver.com/


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Naver blog,Daum blog,Yozm,Egloos,Tistory, Cyworld&

me2day(13 mil. usersin Feb, 2013more than domestic Facebook8 million,and lower Twitter, yet 2Xs higher than world average).

Job recruitment agencies:

Findjob,

Scout, Career, withSaramIn,JobKorea, and Incruit, top platforms in Korea.

-SaramInhas 1.5 mil. job seeker profiles.

-Korean professional network -Linknow.-Competitor: me2day.

-LinkedIn- world's largest professional network--200 million members in 200 countries,

-with 323,971 in Korea~30 x less than Facebook
http://section.blog.naver.com/http://blog.daum.net/http://yozm.daum.net/http://www.egloos.com/http://www.tistory.com/http://global.cyworld.com/http://me2day.net/me2/welcomehttp://www.nhncorp.com/nhn/service/me2day.nhnhttp://www.socialbakers.com/facebook-statistics/south-koreahttp://www.findjob.co.kr/http://www.scout.co.kr/jobs/default.asphttp://www.career.co.kr/default.asphttp://www.jobkorea.co.kr/http://www.incruit.com/http://www.asiae.co.kr/news/view.htm?idxno=2013013007305147555http://www.asiae.co.kr/news/view.htm?idxno=2013013007305147555http://www.linknow.kr/http://www.linknow.kr/http://www.asiae.co.kr/news/view.htm?idxno=2013013007305147555http://www.asiae.co.kr/news/view.htm?idxno=2013013007305147555http://www.incruit.com/http://www.jobkorea.co.kr/http://www.career.co.kr/default.asphttp://www.scout.co.kr/jobs/default.asphttp://www.findjob.co.kr/http://www.socialbakers.com/facebook-statistics/south-koreahttp://www.nhncorp.com/nhn/service/me2day.nhnhttp://me2day.net/me2/welcomehttp://global.cyworld.com/http://www.tistory.com/http://www.egloos.com/http://yozm.daum.net/http://blog.daum.net/http://blog.daum.net/http://blog.daum.net/http://section.blog.naver.com/http://section.blog.naver.com/http://section.blog.naver.com/


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More Info Seoul Global Center


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Korean Governmental OrganizationsKorean Educational Development Institute (KEDI): www.kedi.re.krKorea IT Industry Promotion Agency (KIPA): www.software.or.krKorean Culture & Content Agency (KOCCA): www.kocca.or.krKorea Trade-Investment Promotion Agency: www.investkorea.orgInternet Statistics Information System (ISIS): isis.nic.or.krMin of Commerce, Industry, and Energy (MOCIE): www.mocie.go.krMin of Education & HR Development (MEHRD): www.moe.go.kr

Min of Information and Communication Korea (MIC): www.mic.go.krNational Internet Development Agency of Korea (NIDA): www.nida.or.krKorean Industry AssociationsDigital Content Forum Korea (DCFK): www.dcforum.orgKorea Contents Industry Business Association (KIBA): www.kiba.or.krKorea E-learning Industry (E-lrc): www.elrc.or.krThe Annecy International Animation Film Festival: www.annecy.orgKorean Media

Market Brief: Digital Content Market in KoreaDigital Chosunilbo: http://english.chosun.comDonga Ilbo English Edition: http://english.donga.comThe Electronics Times of Korea: http://english.etnews.co.krThe Korea Economic Daily: www.hankyung.comThe Korea Herald: www.koreaherald.co.krThe Korea Times: www.koreatimes.co.kr

Korea Trade Investment Promo Corp

www.kotra.or.krNational Internet Development Agency

Tel:(822)2186-4623 www.nida.or.krKorea IT Industry Promotion [email protected] www.software.or.kr

World Statistics

www.cia.gov/cia/publications/factbookInternational Trade Opportunities

www.infoexport.gc.ca/ie-en/IndustrySector.jsp

Strategis detailed Canadian industry, business,and consumer information

http://strategis.ic.gc.ca/engdoc/main.html

SourceCan change name to: SourceCAN,Canada's e-marketplace and businessopportunities network.

www.sourcecan.com/E/index.cfmExporting & Importing Info Business Service

Center: www.cbsc.org/servlet

[email protected]

Check local government websites 1stEmbassy & trade offices = $100~$300/month

Cyber business center www.trademarketkorea.com

Seoul Global Centerhttp://global.seoul.go.kr

www.hikorea.go.krwww.investkorea.org

[email protected]

Suggested Readings Author


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Suggested Readings Author

4-Hour Workweek Ferriss, Tim Entrepreneurship Mariotti, Steve

Starting & Operating a Small Business

Young Entrepreneurs Guide Mariotti, Steveto Starting and Running a Business

1stThings 1st& 7 Habits Covey, Stephen Rules for Revolutionaries Kawasaki, Guy Start Your Own Business Lesonsky, Rieva What No One Ever Tells You Norman, Jan

about Starting Your Own Business Six Thinking Hats De Bono, Edward A Kick in the Seat of the Pants Von Oech, Roger Doing Business in Seoul SGC

[email protected]

Thanks - Seoul Global CentreSteve McKinney, Hong Seok Choi, Jihye Park


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Steve McKinney, Hong Seok Choi, Jihye Park& Park Won Soon

My wife HyunKyoung & 4 [email protected]@Hotmail.com

Cell: 010-5552-5568

2013 06 22 seoul city hall global center sgc business planning guide short summary

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