Methods to develop entrepreneurial skills !
Methods to develop entrepreneurial skills !
Methods to develop
entrepreneurial skills
1. Develop the confidence of choice
Set small goals and achieve them to build
confidence about your abilities. These will be an incentive for you to improve
their skills.
Act with confidence
Face new
challenges and try to integrate those
failures and learn from them, even if
you are likely to fail.
Reporting and Evaluation
Get
systematic assessments from handlers to view your progress and make necessary
changes.
Aptitude Exercises
Improve
skills based on activities such as mental exercises, patience, thinking
skills, and teamwork.
Improve self-knowledge
Know your
weaknesses and weaknesses and learn to the best of your abilities.
Big goals and planning
Plan to
achieve important goals in your life. Plan to achieve important goals and
implement ideas to achieve them.
Tip and Support
Get
support from friends, family or coaches to improve your progress and build
self-confidence.
Differences between entrepreneur
and merchant
Entrepreneur
|
Merchant |
Develop a business according to his idea or new concept. He will begin |
Starts a business according to a prevailing concept or concept |
The competitors for the entrepreneur's business are himself |
For Business Many competitors Found |
Ready
for new business opportunities |
The merchant will continue
to pay attention to his business
ethics |
The
entrepreneur is an innovator |
Legacy Become a follower Will be |
Face to Risks Will give |
Carries out
his duties in a safe manner |
When problems arise, they face them better |
Loses enthusiasm when problems arise |
Business One
Access to Getting Started
Proficiencies
·
6.1 Important
Decisions to Take Before Starting a Business
·
6.2 Alternative Ways to Market Entry When Starting a New Business
o Placing used
goods or services in the prevailing market
o Putting used
goods or services in the new market
o Presenting new
products or services in the market where they are in existence
·
6.3 Strategies
to enter a new business
o Putting
forward specific new products or services
o Presentation
using production differences
·
Innovation
Important Decisions to
Take Before Starting a Business
1.
How can you dedicate yourself to business?
2.
What is the basic product or service?
3.
Who is the targeted consumer?
4.
What is the competitive situation?
5.
Is the income sufficient?
6.
How to obtain capital?
7.
Starting a business alone or in partnership?
8.
What is the suitable
location for business
9.
What kind of benefits can be provided to the society through
business?
1) How it can be
dedicated to the business
When a
businessman starts and runs a business, he has to play a variety of roles
Examples:
✨ Obtaining
Raw Materials
✨ Selection
and direction of employees
✨ Receipt
and maintenance of machinery, equipment, etc.
✨ Obtaining
Funds & Maintenance of Funds
✨ Procurement
Activity
✨ Production
Activity
2) The product or
service that is basic to the business
The main factor that is fundamental to the
success of a business is the product or service presented in the market. They should
satisfy the needs and desires of the consumers and should exhibit special
features when compared to other goods and services.
Examples:
1.
When small motor vehicles are manufactured they
should have special features such as shape, parking facilities etc.
3)
Targeted Consumers
The group
of consumers for which the goods or services proposed by the merchant are those
who are currently consuming the product
and the consumers who are likely to consume it in the future.
For
example:-
✨ Discrimination
between children, youth and the elderly
✨ Discrimination
on the basis of gender discrimination between low income group and high
income demand
✨ Sri
Lankan consumer groups spread all over the world
1. Market Research
Analyze
market needs, consumer habits, and competitors' practices to develop certain
consumer specifications for your goal.
2. Criteria and Regions
Point out
the consumer's season, gender, income, education level, and other socio-general
details.
3. Demographic and psychological details
Observe
in detail the consumer lifestyle style, beliefs, priorities and life issues.
4. Approach skills
Learn the attitude skills of consumers
interested in buying or using your product or service.
5. Bizarre and Challenges
Understanding
the challenges and hopes consumers face for your target will help you meet
their needs.
1. Economic status
Take away
the economic status of the consumer at your destination and use the pricing of
your product or service.
2. Research and Studies
Do consumer feedback and surveys and identify your goals appropriately.
4)
Competitive Situation
Competition
is imperative in the present market i.e.
collective competitors of persons or firms who supply various goods and
services to the market to satisfy a demand or want. When assessing
the nature of competition, it is not necessary to be as careful about the
competitors who may enter the market in the future as the present competitors.
Examples:
✨ Detergent for washing clothes
✨ Face Masks
✨ Phone Types
Key aspects of business competition
1. Price Competition
Companies that offer the same type of goods or
services tend to lower prices in an attempt to attract customers.
2. Technical Competition
Competition to take other companies up with new and
advanced technologies.
3. Service Status
The more good customer service is provided, Competition
will be produced accordingly.
4. Market Share
Every company engages in a scramble to get more
shares of the market.
5. Brand Value
Famous and promising brands attract customers, which
is a competition for other companies.
5)
Is the income sufficient?
Entrepreneurs
start a business with the intention
of increasing income, which should be sufficient to cover all the expenses of
the business.
1.
Cost of Purchase
2.
Tax Expenditure
3.
Payment of Interest
4.
Be able to cover expenses such as salaries
5.
Obtaining an adequate profit for the owner
6.
Ability to obtain investment income required for the
future growth of the business
1. Expenses
Whether the income from the total costs of the
business (oil, capital, wages, administrative expenses, etc.) is sufficient.
2. Profit
It should
also be respected whether the income is able to meet expenses and whether there
will be further profits.
3. Short consistency
It should
be considered whether the income is getting the market conditions and the
necessary stability for business growth.
1. Financial Status
It is important to check whether the returns
will help meet the expected future needs and whether it is sufficient to be
able to make the necessary investments.
2. International Stand
It is
necessary to look at whether returns are affected by external factors such as
global markets or technological advances.
6)
Means of raising capital
Generally,
finance is necessary to start a business. The requirement of capital depends on the nature of the business
activity. Some businesses require less capital and some businesses require
limited capital. There are several alternatives to meet this raw demand. The major
sources of capital are as follows :
1.
Personal Savings
2.
Engaging one's own assets
3.
Help from friends and relatives
4.
Obtaining Bank Loans and Further Loans
5.
Getting advance from the customer
· Personal Investment
o Use your own savings or assets as an investment.
· Business Bank Loan
o Loans can be taken from banks and financial
institutions, which gives a financial opportunity with regular payments.
· Investors
o Investors can
invest through governance or systems, referred to as "banking manual".
· R.A.F. (VC) or Venture Capital
o Venture Capitalists (VCs) invest in growth companies, which may offer you stocks or interests.
· Stock Issue
o Raising capital by selling shares to the public.
·
**Business
Partnership**:
o Working in partnerships with other businesses or
obtaining capital.
· Crowdfunding
Getting
small-scale investments from various people in online systems (Kickstarter, Indiegogo, etc.).
· Legal Aid and Public Assistance
Obtaining
educational, research or entrepreneurial assistance from the government
7) Starting a business alone or as a partnership?
A business can be started on a business day or
by bringing together any other member of the family.Whether to start a business alone or jointly, the pros
and cons available to the entrepreneur should be considered and the most
suitable method should be chosen.
That is, we should think about starting a
business as a sole proprietorship and a public business
Private Proprietorship (Sole Proprietorship)
**Advantages:**
1. **Simple setup**: Easy to start
and minimal legal and administrative need.
2. **Full Control**: All decisions
are made by the same person, which helps in quick decision-making.
3. **Income tax**: Income goes to
the same person, which is similar to being easily taxed.
**Challenges:**
1. **Section**: The total and
personal assets must cover the expenses.
2. **Environment**: Personal
partition can be very limited.
Partnership
**Advantages:**
1. **Consolidated Fund**: Many
people's investment and capital are consolidated.
2. **Skills and Talents**: Be able
to use the skills and experiences of many people.
3. **Access**: Can get support from
multiple people.
**Challenges:**
1. **Sharing**: Profits and controls
will be shared between shareholders, which may create conflicts.
2. **Open Benefits**: If partners
change or separate, the status of the business may suffer.
8)Suitable location for business
A key
factor that contributes to the success
of businesses is where they are located. The following
factors determine the best place to start a business.
·
Number of consumers and their distribution
·
Facility to obtain raw materials
·
Facility to acquire employees
·
Access to infrastructure facilities such as electricity, water and
telecommunication
·
Facilities that can be provided to consumers i.e. vehicle side
welfare facilities etc.
·
Cost of space
When choosing a suitable location for the
business, there are a few other aspects to consider:
**Access Customer Basic**:
A place where you can easily reach your target customers. Low power
cut stock and flow of visitors, customer attendance and appropriate site,
crucially, is perfect for your business.
**Organization and General
Facilities**:
Possible amenities such as location setting, computer and telephone
facilities, blogging, and internet connections.
**Enterprise costs**:
Rental, security costs, and tax charges apply according to your
business's financial plan.
**Competitors Status**:
Consider the position of competitors and recent competitors for the
same business.
**Holiness and Security**:
The health, safety of the premises, and the safe preservation of
documents.
**Dimensions**:
Consider space dimensions based on the size of your business. It
should be in line with the products and services you want to implement.
**Internet Facilities**:
Also check if the business place has the necessary internet and
phone services for the customer and business techniques.
**Appropriate economic status**:
Carefully monitor the economic environment and changes in the
business.
Considering these aspects, it is
important to choose a location that meets the needs of your business, that is
useful, and suitable.
Entry of New Entrepreneurs into the Market
Whether
it is a small scale or a large scale business, it is necessary to
enter the market with a good plan right from the beginning to make it
successful. There are steps that a new entrepreneur should follow to enter the
market.
1. Placing used goods or services in the prevailing market
2. Presenting an active product or service to a new market
3. Placing a new product or service in the existing market
4. Putting a new product or service before a new market
For new
entrepreneurs, there are several important aspects to be considered while
entering the market. It is about how to survive in the market, cope with
competition, and achieve growth.
**1. Market Research:**
Evaluation**: Identify your target market.
List of people**: Understand your customers,
their needs, and preferences.
Contests**: Consider the contestants for the same.
**2. Business Plan:**
Planning**: Create your business plan and
explain its shares, goals, and cash payout.
Financial Plan**: Calculate the investment,
expenses, and income.
**3. Official recognition:**
Registration**: Register your business legally.
Permits and Licenses**: Get all the necessary
permissions.
**4. Marketing and Promotion:**
Marketing**: Promote your brand and products or
services.
Social media**: Make sure you stay at the
forefront of the website and social media.
**5. Sales and distribution reform:**
Sales Programs**: Improve sales potential.
Distribution dilemma**: Set up the distribution
network and distribution systems.
**6. Financial Management:**
Money Management**: Manage your income and
expenses carefully.
Savings**: Protect investments.
**7. Justice and Order:**
Law**: Follow legal obligations and official
protocols.
Placing an existing good or service in the market.
Most of
the traders adopt this method. But the challenge is greater because so far there are more
competitors in the market and consumers are accustomed to their products. Therefore, in
order to make the consumer interested in his own product, the entrepreneur has
to work hard and incur expenses. This will increase consumer development costs and make profits uncertain
Placing a used
goods or service in a new market
There may
be a group of consumers in the market who are not hitherto accustomed to the
consumption of goods or services currently in the market. They can enter the market by
placing the existing goods or services before them. This means
that a new consumer group is formed by presenting a particular product to a
group of consumers or a region or country that has not yet been consumed. .
1.
Obtain orders and deliver goods and services to households or
workplaces
2. Produce and
distribute during or periods when other competitors are not producing and
selling
Placing new products or services in the existing market
Most of
the traders enter the market through this system. Active goods
or services may enter the market with certain modifications and new uses. Although it is
dangerous to have too many competitors, for the time being there is a large
number of consumers who can act prudently and get access to the market.
01.
Introduction of smart
phones in the market for mobile phones
02.
Cash withdrawal from ATMs
without ATM Card
03.
Production of special
footprints, food and
beverages for diabetic patients
Putting new products or services before a new market
The main
advantage of entrepreneurs doing business through this method is the absence of
competitors.So that we can achieve high
success by gaining 100% market share in the relevant future. However, there
are also high risks because the consumer group does not have adequate knowledge
about the new product or service and the consumer group is not properly
identified.
Success can be driven by proper market knowledge and
planning and reporting to consumers.
04.
Have a picnic to the
atmosphere
05.
Various products to
reduce the appearance of aging
06.
Manufacture of a Wind
Powered Motor Vehicle
Challenges of starting a new business
Starting a business in Sri Lanka's current
economic situation is a difficult task.
Economic uncertainty,
questionable future, laws being changed in
great detail by the government
Starting and running a new business is
becoming a major challenge due to this sugarcane.
But from the point of view of business, it is
best to start a business at this time and it is expected that it will be able
to achieve great success in the future when the economy improves.
When they start a new business, they
face a lot of challenges. Key Challenges:
1. Investment Funds
- Difficulties in gathering the necessary investment in the early
stages.
- Need financial skills and manage accounts properly.
2. Market Research and Competition
- Difficulties in knowing the needs
of the market, opportunities, and competitors.
- Choosing the right business model.
3. Acts and Regulations
- The law to be established for
business registration, licenses, permits and bills.
- Problems following industry protocols.
4. Marketing and
Popularization
- The challenges of managing branding, sales, and advertising costs.
- Have the skill to acquire customers and attract them.
5. Services and Quality
- Whether you can provide quality products or services.
- Must meet customers' expectations.
6. Matrimony Management
- Follow-up with technology development.
- Selection and management of the employees involved.
7. Experimentation and
development
- Calculating the growth of the business and analyzing new market conditions
Strategies to enter a new business
The entrepreneur should focus on suitable strategies to make the product acceptable to the consumer.
Some of the best ways to start a business are
1. Be a special new product or service
2. Production differences
3. Market break or opportunity
4. Innovation
01. Introduction of special new products or services
If there
is a difference in the quality of the product, quantity, mere rupees, our
public distribution etc., which are present by the merchant over the
competition in the market at present, it is a successful way to enter the
market.
1.
Perfume detergent with
text that can also be used as a detergent box
2.
A pen with a writing centre at one end and a liquid at the other
end.
02. Presenting using production differences
Production difference is the attempt of a trader to differentiate his
products from those of competitors.
The prices of some goods do not influence the
change in demand for those products. In such cases, suitable changes should be made in the products to
attract the consumers so that the difference in production is a suitable market
entry strategy for the entrepreneurs.
Eg:- When the milk powder is placed in the market
1. Jampo
pack
2. Budjet
pack
3. Economy
pack
4. Thing
pack
03. Identify market gaps and
propose products
Market
gap is the absence of a particular group of consumers in the market to satisfy
their needs and wants.
Although
the largest entrepreneur targets more consumers in the market, he does not pay
attention to certain groups of consumers with special needs.
New
entrepreneurs should pay close attention to these special markets that emerge
according to the changes in the environment.
04.
New Creation
Innovation means doing something new.
Any good or service can be co-optimized from
the beginning of production till it reaches the consumer and after the sale of
service. Through this, there will be a certain change in the use of a
product.
Examples
of innovations that a skilled entrepreneur can have :
1.
Use of plastic instead of
boards
2. Creating
children's story books in various formats
3. New Easy
Installment Payment Pattern
4. 24 Hour
Delivery Service
5. Promotion
through SMS Service
6. Non-soil
cultivation
Methods to develop entrepreneurial skills !
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