ppt4 concepts,brainstormin mod3

7/30/2019 Ppt4 Concepts,Brainstormin Mod3

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Enterprise level tools for

innovations, business plan


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Innovations and entrepreneurship

Innovation and entrepreneurship are consideredas increasing economics vector, leading tocompetitiveness and development.

The successful entrepreneurial is usually based ona significant innovation.

Innovation activities are one of the important

reactions to the challenges.


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The situation regarding innovationan entrepreneurship

Innovation system presents actors, institutionsand their relations and interactions which areinvolved in the innovations.

Innovation process:

- new idea;

- interest;

- evaluation;

- implementation/adaptation.


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Innovation behavior of theenterprise

External factors

- market environment characteristics

- regional institutional characteristics

- policy institutions

Internal factors

- organizational

- personal- financial, etc


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macro-level

micro-

level

labour

resourcesknowledge

finance

enterpriseproduct-, process-,

innovation

costumers/consumers

governance

system

extension services,

consultancy

research &

education

markets/

competitors

informationexchange

structural

change

Information exchange


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Entrepreneurship development

Entrepreneurship can be defined as the process ofusing private initiative to transform a business conceptinto a new venture or to grow and diversify an existing

venture or enterprise with high growth potential.

Entrepreneurs identify an innovation to seize anopportunity, mobilize money and management skills,and take calculated risks to open markets for new

products, processes and services.


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Sources forinnovative

idea

Analyze market,customers and

environment;

Analyze your

existing business

Check your idea;

Check yourself

Evaluation

level

Implementation Results

Innovation idea


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Tools for innovationsprocesses

Idea generation brainstorming, macroscreening, micro screening, SWOT analysis

Feasibility

Capability

Launch & Rollout


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Idea generation &brainstorming

Brainstorming is a dynamic tool, where quantitiesof ideas are offered with no criticism.

It can help people solve problems, develop newproducts or services and increase productivity.

The brainstorming is a good initial one for theBusiness Plan to generate and select ideas of

products/services business.


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Brainstorming

All members of the group must participate. Becreative. The more ideas, the better.

No idea should be blocked.All ideas will berespected and not evaluated. Do not criticise orjudge. All ideas are equally valid at this point.

Ideas already mentioned must be avoided.

The ideas should not be detailed. Keep ideas brief,do not tell stories


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Macro screening

The Macro Screening is a very important steppositioned between the project idea generationand the final decision about the most promising

business idea.

Macro Screening helps to do a first selection; itslike pouring all these ideas into a funnel.


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Micro screening

The Micro Screening links the macro screeningwith the SWOT Analysis (strengths, weaknesses,opportunities, threats), hence being the crucial

nexus between these two.

It adds quality to the selection process by addingdifferent parameters related to economicjudgements (market, skill availability, technology,

etc.).


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Micro Screening Table

PROJECT

good or service

Solvent

demand

Availabilit

y of

qualified

personnel

Availabilit

y of

technolog

y /

equipmen

t

Availabilit

y of raw

material

TOTAL Competit

ors

Corrected

TOTAL

Critical

success

factors

( + ) ( + ) ( + ) ( + ) ( = ) ( - ) ( = )

Scoring system: 5 extremely high ; 4 high ; 3 average ; 2 fair; 1 poor; 0 absent

Critical success factors: write text


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SWOT analysis

The SWOT Analysis (strengths, weaknesses,opportunities, threats) is based on these concreteproject ideas.

It is quite a simple but very powerful tool whichenables the participants to do a propercomparison of the last three projects remainingafter the micro screening process.


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Innovation Life Cycle Process

Ideation

Concept development

Evaluation (business and technical)

Commercialization

Improvement innovation


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Business plan based on

Entrepreneurship

The business idea

Business areas


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For preparing a Business Plan we must answer afollowing questions:

1. WHAT is a Business Plan?2. WHO needs a Business Plan?

3. HOW to prepare a Business Plan?


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1. What is a business plan?

Business planning is about results.

A business plan is any plan that works for abusiness to look ahead, allocate resources, focuson key points, and prepare for problems and

opportunities. Businesses need plans to optimize growth and

development according to priorities.

A business plan is like a map and a compass for abusiness.


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presentation

plan

Working

planmini-plan

Business plan


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The Different Types of Business Plans

Business plans are also called:

- strategic plans

- investment plans

- expansion plans

- operational plans

- annual plans

- internal plans

- growth plans- product plans

- feasibility plans and many other names.


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2. Who needs a businessplan?

You need a business plan if youre running abusiness;

You need a business plan if youre applying for abusiness loan;

You need a business plan if youre looking forbusiness investment, new products or new services;

You need a business plan to communicate with a

management team.


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3. How to prepare a business plan?


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Is There a StandardBusiness Plan?

A normal business plan, includes a standard set ofelement. Plan formats and outlines vary, butgenerally a plan will include components such asdescriptions of the company, product or service,market, forecasts, management team, andfinancial analysis.

Your plan will depend on your specific situation.


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Executive summary

Business description:

products and services offered

Market strategies

Competitive analysis

and positioning

Operations andmanagement plan

Outline of a business plan

Financial components

- condensed information

on each

of the chapters bellow- type of business;

- products and services

offered;

- ownership of the business

and its legal structure;

- profitability

consideration.

- market and target market;

- demand for the product

or service;

- promotion;

- dissemination and

delivery;

- pricing strategy.

- competition analysis;

- identification of

competitive strenght

position.

- operations plan;- management team.

- capital requirements and

sources;

- balance sheet;- break-even analysis;

- income statement;

- cash flow projection.


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Annex

Business aspects advise: adresses for financingadvise,legal advice, marketing advice

Figures Tables

Graphs

Other sectors advice: research institutes,interests groups, administration, other key

innovation areas.


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Planning is a Process, NotJust a Plan


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Successful implementation startswith a good plan

Is the plan simple?

Is the plan specific? specific budgets?

Is the plan realistic?

Is the plan complete?.


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Preparing a business plan

Define and fix objectives, and programs toachieve those objectives.

Create regular business review and course

correction. Define a new business.

Support a loan application.

Define agreements between partners.

Set a value on a business for sale or legalpurposes.

Evaluate a new product line, promotion, orexpansion.


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Keys to Better BusinessPlans

Use a business plan to set concrete goals,responsibilities, and deadlines to guide yourbusiness.

A good business plan assigns tasks to people ordepartments and sets milestones and deadlinesfor tracking implementation.

As part of the implementation of a business plan,it should provide a forum for regular review and

course corrections. Good business plans are practical.


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Individual GANTT Chart Table (example)Months

Activities

2/99 3/99 4/99 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 1/00

Seek legal advice

Choose land and buy

Plan plant layout

Finalise loan

Register

Order machines ++++

+

++++

+

++++

+

Prepare plant

Advertise ++++

+

++++

+

++++

+

++++

+

Recruit personnel

Install machines

Trial production

Open business


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Business Plan "Don'ts"

Don't use a business plan to show how much youknow about your business.

Nobody reads a long-winded business plan: notbankers, bosses, nor venture capitalists. Yearsago, people were favorably impressed by longplans. Today, nobody is interested in a businessplan more than 50 pages long.


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How Long Should aBusiness Plan Be?

Page count is not a good way to measure length.

A 20-page plan with dense text and no graphics is muchlonger than a 35-page plan broken up into readablebullet points, useful illustrations of locations or

products, and business charts to illustrate importantprojections.

A good business plan should leave a reader a goodgeneral idea of its main contents even after only a quickskimming, browsing the main points, in 15 minutes.

Format, headings, white space, and illustrations make abig difference. Summaries are very important. Mainpoints should show up in a business plan as quickly asthey do in a business presentation.


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The right length of the plan depends on thenature and purpose of the plan

Will it include descriptions of the company andmanagement team for outsiders to read;

Does it need an executive summary good enoughto stand alone;

Does it include detailed research, plans, drawings,and blueprints;

Is it worded to withstand legal scrutiny as part ofan investment proposal.


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BUSINESS PLAN

Standard Outline


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EXECUTIVE SUMMARY

Brief Description of the Project

Brief Profile of the Entrepreneur

Project's Contributions to the Economy

Write this last. It's just a page or two ofhighlights.


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Section 1MARKETING PLAN

Description of the Product

Comparison of the Product with Its Competitors'

Location

Market Area

Main Customers

Total Demand

Market Share

Selling Price

Sales Forecast Promotional Measures

Marketing Strategy

Marketing Budget


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Section 2 PRODUCTION PLAN

Production Process (fixed capital, life of fixedcapital)

Planned Capacity - Future Capacity

Terms and Conditions of Purchase of Equipment

Factory Location and Layout

Raw Materials Needed - Cost of Raw Materials -Raw Materials Availability

Labour

Cost of Labour

Labour Availability - Labour Productivity

Factory Overhead Expenses

Production Cost


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Section 3 ORGANIZATION &MANAGEMENT PLAN

Form of Business

Organisational Structure

Business Experience and Qualifications of the

Entrepreneur Pre-Operating Activities

Pre-Operating Expenses

Office Equipment

Administrative Expenses


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Section 4 FINANCIAL PLAN

Project Cost

Financing Plan and Loan Requirement

Security for Loan

Profit and Loss Statement Cash Flow Statement

Balance Sheet

Loan Repayment Schedule

Break-even Point (BEP)

Return on Investment (ROI)

Financial Analysis


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When a business plan is being worked out, thereare too many big questions, the answers of whichonly the entrepreneur can know, that are far tooimportant to be left to someone else who claimsthat he can spare the entrepreneur the trouble ofpreparing his own business plan - no one can do itbetter than you!


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Summary

A proper business plan serves as a map.

Use it to establish the points along the route,indicating why each is important and how it can

best be reached. The plan builds from mission and value to

justification, strategies, tactics, actions andexpected results.

Comprehensive business planning increases the

likelihood of the ventures success.


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Every business need an innovation engine togenerate the great ideas that will propel the

business forward into the future.

ppt4 concepts,brainstormin mod3

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