ALTERNATIVE PATHS TO MOTIVATE AND ENGAGE YOUTH BACK TO WORK [631324]

RE-ENGAGE!
ALTERNATIVE PATHS TO MOTIVATE AND ENGAGE YOUTH BACK TO WORK
BECOMING AN ENTREPRENEUR (IO1)

MODULE 1
STARTING A BUSINESS
“What separates the entrepreneur from others is that entrepreneurs act on what they see.”
– William B. Gartner

Contents

Contents ………………………… …………………………………………………………………………… …….. 2
Copyright Statement of the training material……………………………………………………… …3
Introduction …………………………………………… ……………………………………………………… .….4
UNDERSTANDING ENTREPRENEURSHIP……. ……………………………………… ..……… ……. 6
 How define entrepreneurship ………… …………………………………………………… …..6
 Entrepreneurs? New Entrepreneurs…(YOU)th! …………… .….…………………… ……7
 Characteristics of successful entrepreneurs ……………………………………… .…..…9
 Types of entrepreneurs……… ………………………………………………………………… ..12
THE BUSINESS IDEA ………………… …………………………………………………..………………… …15
 Developing the business ideas …………………………… ………………………… ……..15
 Evaluating the business ideas ………………… ………………………… …………….. …..21
STARTING A BUSINESS ……………………………………………………………………… ..……………. 29
 Steps …………………………… …………………………………………………………..……… .….29
 Business form ……………………………… .……………………… ………………………… .….32
AM I READY FOR BECOMING AN ENTREPRENEUR?……………………………………………… 33
PRACTICAL ACTIVITES/RESOURCES …………………………………………………………………… 36
SOURCES OF INFORMATION ……………………………………………………………………….……..3 9B

Copyright Statement of the training material

This training material was developed within the framework of the project “RE -ENGAGE! –
Alternative paths to motivate and engage youth back to work”.
The training material is open and available for all learners and any other interested
stakeholders.

Introduction
The future is full of entrepreneurial opportunities, and new venture creation and
entrepreneurship are changing the face of the world’s businesses and economies. Historically,
entrepreneurship has taken many different turns. In today’s market -based economi es, new
venture creation is the key to technological and economic progress. Through entrepreneurship,
people will continue to live better, longer, and more rewarding lives. We have defined
entrepreneurship as the creation of an innovative economic organiza tion (or network of
organizations) for the purpose of gain or growth under conditions of risk and uncertainty. This
definition enables us to make distinctions between entrepreneurship and other wealth – and
income -generating activities. Young people with t he dreams and vigour of youth are uniquely
skilled and positioned to be one of the most successful entrepreneurs.

Purpose
The main goal of this module is designed specifically to begin your entrepreneurship journey.
You will be able to expand your own understanding related to what means entrepreneurship
and how to begin a business – the starting point – Descovering and Developing the business
IDEA . The FANTASTIC one!

Learning Outcomes
As a young entrepreneur you will be navigating new territory in an environment that is
constantly changing. To be in the drivers seat of Business development takes passion,
dedication, and as much support and guidance as you can gather on your way. Be prepared to
know and understand
– The meaning of the entrepreneurship
– The characteristics and types of the entrepreneur s

– The entrepreneurial idea and the development stages
– How to organize a business
This is the start of your journey to setting up your own business. Enjoy it and good luck!

Keywords
 entrepreneurship
 business idea
 costumers/markets/demands
 products/services
 business forms

UNDERSTANDING ENTREPRENEURSHIP !

Clearly the game of entrepreneurship has changed, and nobody has alerted the players. Being
an entrepreneur today – particularly a successful entrepreneur – is more difficult than it has
ever been.

Entrepreneurship means different things to different people. Some imagine tech geniuses with
Silicon Valley startups, while others picture small business owners opening up their shop doors
on Main Street.

Ultimately, entrepreneurship encompasses these and many other business ventures that :
share a commitment to turning an idea into a profitable business.

”At its core, it is a mind -set – a way of thincking
and acting. It is about imagining ways to solve
problems and create value” .

Bruce Bachenheimer
Executi ve Di rector of the Entrepreneurship L ab –
Pace University

Entrepreneurs? New entrepreneurs… (YOU)th!

In the new millennium, the ideas, talents, skills, and knowledge that promote
entrepreneurship are evident in people all around the globe, but especially in today’s
generation. This new direction is a change from previous times when the forces for
economic growth tended to favor more established businesspersons from the corporate
world. But the face of the world economy has shifted, and young people today are well
suited for entrepreneurial activity. For instance:

The aspiring entrepreneurs of today are technologically precocious. YOU are
comfortable with new technologies and are n ot fearful of change and the radical shifts that
new technology can bring. Younger people are at home with computers and all sorts of
consumer electronics. Over 80 percent of homes with children have computers and access
to the Internet. A Carnegie Mellon study found that children and young adults are the
authority on computer technology in the home. Adults take a back seat to the kids. Even
beyond their technical competency, young people are immersed in technology and have
internalized its power.

“It’s a great time to be an entrepreneur,” especially an Internet one. Compared to ten
to fifteen years ago, hardware is 100 times cheaper, infrastructure software is free, there is
easy access to global labor markets, and SEM (search engine marketing) has changed
distribution and selling tactics.

YOUR generation is passionate, inquisitive, and challenging. YOU welcome change
and em brace the idea of progress. YOU have seen the improvement of information
technology, new medical and biotech processes and products, and radical changes in the

way people communicat e and work. YOU believe that continued improvement and even
revolutionary change await them in the future.

YOU think differently. As Fast Company puts it, “Forget the experience curve. The
most po werful force in business today is the inexperience curve. Young companies, born
on the right side of the digital divide, are running circles around their older, richer, and
slower rivals. If one wants his or her company to think outside the box, why not le arn by
working with people who don’t know there is a box ?” For example, Youtube.com began
business without “knowing” it was a business. The founders created a Web site for videos,
which developed into a business.

YOU are independent. More and more peopl e starting out in professional business
careers consi der themselves free agents. YOU have portable skills .

How Does the New Entrepreneurship Add Up?

The sum of these trends is more entrepreneurship and business start -ups for younger
people. Many new ven tures will be technology based. The traditional career path may
become a rarity. Today’s younger people are more entrepreneurial than those of any
previous generation. More and more people are striking out on their own. In fact, most
teenagers entering co llege know more about business than their parents ever did. Many
more teenagers work today than their parents did at their age. Vanity Fair magazine has
coined a new word – “enfantrepreneurs.”

YOU and YOUR peers (entrepreneurs or enfantrepreneurs) will take us into the future!

Characteristics of successful entrepreneurs
MJ Gottlieb – author of "How to Ruin a Business Without Really Trying" (2014), said it takes a
special kind of person to become a success ful entrepreneur.

"An entrepreneur is someone who can take any idea, whether it be a product and/or service,
and have the skill set, will and courage to take extreme risk to do whatever it takes to turn that
concept into reality and not only bring it to market, but make it a viable product and/or service
that people want or need .”

"The difference between an entrepreneur and a nonentrepreneur is the simple act of starting,"

"Lots of people have great ideas but don't take that one step.”

What is an Entrepreneur? – Definition, Characteristics & Examples – Video & Lesson Transcript
| Study.com

Passion.

Vision.

Focus.

Courage.

Will.

These are just a few signature traits of successful entrepreneurs !

Business Dictionary proposes the following des cription of an entrepreneur – “Someone who
exercises initiative by organizing a venture to take benefit of an opportunity and, as the
decision maker , decides what, how, and how much of a good or service will be produced .”

KEY WO RDS:

These WORDS are the core of each entrepreneur and founder. Simply, entrepreneur is the one
who sees the opportunity and initiates the production or service delivery.
initiativeopportunitydecision&ac
tions

Magazine INC proposes the top 5 characteristics of the successful entrepreneur:

1. Resilience – it is a core quality to start the list.
“And it's about more than just business opportunities and obstacles, your personal life will be
challenged as well. You'll face complex financial problems, decision -based dilemmas, long
hours, sudden changes, and predictions that egregiously fail.” It might come as a challenge to
most of the people because the normal planned life will be replaced with the one where
everything happened as it was never planned and most of the things will be done last mi nute
and without a notification. So, successful entrepreneur have to be able to face the number of
challenges and more importantly there should be a right way to face them all by keeping the
face and not putting the unnecessary pressure on others (team mem bers, family).

2. Agility – this criteria is also very useful for the well being of the no rmal humans as well.
However, “a gile entrepreneurs are able to treat every problem they encounter quickly and
adeptly, without taking too long to address them.” It is a necessary skill to learn in order to
make sure whatever kinds of problems arise, the leader have to be able to solve it fast and in
the best scenario turn it into a benefit.

3. Patience – Being the leader of a profitable company is a dream of many startupers and
general entrepreneurs. Looking into the startup accelerators and their reports creates a clear
picture that only after years of hard work and committed effort, startups reach success. So,
time, team spirit and efficiency are the criteria whi ch take time and it might take really long
time before any great c hanges are happening. So, entrepreneurs have to learn how to wait.

4. Trust – “Mutual trust is a necessity when working in a position of leadership, especially in
the context of a small team that typically defines startups.” One can not do all the work and
have all secrets in mind. There is a need to share and use all possible conne ctions and

knowledge to solve upcoming challenges and brainstorm on new ideas. Co -workers have to
trust and be confident in each other. So, allowing our colleague or hiring a new team member
means delegating operations.

5. Passion – the most exciting thi ng to be a startuper is to make your dream (product or service)
come true. Work which brings you happiness and allows to reach your heights is definitely
something to value and wake up for every morning. This is the atmosphere of the startup hubs
and co -working spaces. Everyone comes there to create.

Types of entrepreneurs

Here are five types of entrepreneurs. Get honest about which one you are and which one you
want to be.
1. THE SKEPTICAL ENTREPR ENEUR
This entrepreneur sees the success of others and immediately starts to question it. They
examine that person's business and looks for the “lucky” breaks, or inheritance they think that
successful entrepreneur received. Maybe it’s the news, or previous life experiences, but they
are skeptical of success a nd don’t believe it’s possible without all the stars falling into place.

When you can’t see or believe success is possible, you’ll never get to a place in your mind that
allows you to take action. You will stay stuck; you’ll make every excuse and believe it because
of your skeptical mindset. This is the scariest type of entrepreneur.

2. THE COPYCAT ENTREPREN EUR
This entrepreneur sees the success of others and tries to copy them exactly. Their website is
the same, their business cards are the same, and the way they present themself is the carbon
copy of a leader in their industry.

There is nothing wrong with modeling success —it’s actually very smart. There is a fine line,
however, between modeling and copying. Modeling success means you see what works and
figure out how to make it relevant to your business, and who you are as a person. If you have
been copying, get honest and switch from copying to modeling.

3. THE RESEARCH ENTREPRE NEUR
These entrepreneur s love to learn. They research every possible scena rio and outcome for
strategies to start or grow a business. There is nothing wrong with learning, but when that’s all
you do, it becomes a problem. The research ends up becoming an excuse for not taking action.
While you should always strive to learn what works, and what could help your business, you

have to implement. Most entrepreneurs know more than they think; too many entrepreneurs
fall victim to information overload. The key to success is learning and then implementing. The
implementing has to happen.

4. THE DETERMINED ENTREP RENEUR
This entrepreneur hasn’t “made it” but they will, no matter what. They see the value in
entrepreneurship, they see that success is possible without copying, and they do everything
they can to start or grow their business.

Starting and growing a business is hard, and it takes time, but there is proof that it’s possible to
thrive. To get there, you need change your mindset from focusing on what too many people
consider “reality” to what you know your reality can be. Successf ul entrepreneurs have
determination as their backstory.

5. THE ACCOMPLISHED ENTR EPRENEUR
This entrepreneur has gone through all the stages of entrepreneurship and building a business,
and has reached success. They are now focused on scaling their business and leaving a legacy
that extends beyond their lifetime. The accomplished entrepreneur has figured out the things
that will help you reach success.
They have figured out how to connect with their customer and how to solve their biggest
struggles. They wi ll never “make it” but they are experiencing true freedom. They understand
their time is their most valuable resource so they use it wisely.
Learning C HALLENGE no. 1 :
What type of entrepreneur are you? Face the truth and make a change if it needs to be m ade.
Success will be different for each of us, but if you’re stuck, it could be because you’re not the
type of entrepreneur you should and want to be. It all starts with deciding what your goals are.
Decide what you want from your business and how that fit s into your life.

The business idea – Developing the business idea

Opportunities are everywhere!

“In business an opportunity is as real as
capital and resources: b ut first you must see
it.” – Edward de Bono

One of the most important skills in business is identifying future opportunities and using those
opportunities to achieve your aims. For an entrepreneur opportunity recognition is about
coming up with new ways to start and develop an enterprise activity.

What does it take to come up with gr eat
business ideas?

You have been suggested here different practical methods to help you come up with new
ideas. While you will probably find one of the techniques is more suited to the way you ”think ”
– great – you can use that process again and again. But make sure, for the benefit of learning,
that you try all of the approaches at least once.

The idea phase of starting a business is the most fun. But it is very important!

Method 1: Listing complaints – start talking with different people about their challenges,
ambitions, and constraints and also about stumbling blocks that they encounter in every day
life. It is o ne effective way of uncovering problems dedicated to hearing the voices and
understanding the lives of the people around you as a very good source of inspiration.
Examples:
What disturb you /your
friends lately? Many young people live in
unsuitable places
Develop a private rental service for
young people or see here a great
business: http://www.roomfortea.com
What takes too long? Getting documents (licenses,
permits, certificates, etc.) from
the government takes for ever …………….. …………………..
What are people
always complaining
about ? There are so few chances for
married people to have some
time to themselves …………….. …………………..
What is being wasted in
our community? Many restaurannts are wasted
food …………….. …………………..
What is too
complicated? Traffic in the citiy is too heavy
during rush hour …………….. …………………..

Real Story: When Colin Barceloux was in college, he thought textbooks cost far too
much. In 2007, two years after graduating, he decided to take action and founded
Bookrenter.com, a San Mateo, Calif ornia -based business that offers textbook rentals at about
a 60 percent discount. What began as a one -man operation created out of frustration now has
1.5 million use rs and 200 employees. "You just have to look at what frustrates you," he says.
There's your business idea right there."

Method 2 : CREATE – another way to discover enterprise ideas is to use a framework
called the CREATE model.

 What can you COMBINE together to start a new service or product?
 Can you REVIEW the way current programs or services in your community /area are
operated?
 What can you ELIMINATE in any processes or products or tasks to make them more
efficient or easier for customers?
 Can you ADAPT or change the way things are curently done to make them easier or
more appealing for customers ?
 How can you TRANSFORM a product or se rvice into something new that you could
develop a business around? e.g. Eaglehawk Recovery and Sales Yard saw the
opportunity to transform waste into money and jobs .
 What can you EVOLVE into something else. e.g. The national youth service in Tonga
evolved a bicycle repair program into a bicycle hire busin ess for tourists around the
island.

CREATE
Combine
Review
Eliminate
Alter
Transform
Evolve

Method 3 : Day In The Life – Use it to explore the experiences of a potential customer or
someone who will be using what you might be creating by your business . Use it for identifying
opportunities, for example where people have a problem for which there is no current solution.

Identify whose life you are going to map out. This may be a single person or a generic class,
such as potential ”customers”. When sele cting a group, be as specific as you can, identifying a
homogeneous group, so your map will be mostly true for most people. Research them (if you
can) – in many, but not all situations, it can be very helpful to do some research about the
people in questio n. This can range from general research about who they are, what they do,
the problems they experience and so on. You can also go directly to them with specific
interviews or questionnaires. If you can do it, the best option can be to ask them for a
descri ption of their typical day.

With a selection of ”typical days” you can then create an even more typical day… Write a
narrative that describes their typical day. Divide it up into sections (or ”chapters”), such as
getting up, going to work, having lunc h, etc. Context is an important part of creating meaning.
Putting the rest of life around experiencing a problem or using a solution enables a deeper
understanding to be gained. By seeing through the eyes of target people, it is easier to
associate with th eir feelings and experiences and really understand their contextualized need
and problems.

When you can really see their problems, then this creates a more effective creative tension
that you can use for generating effective ideas and solutions. This met hod could be combined
with Method 1.

Method 4 : Trend Analysis – another way we can look for business o pportunities is
through a process called Trend Analysis.

A trend is simply a general direction that
something is going (more or less).

For example – what people are wearing,
what they are eating, where they are
having their holidays, what they are
watching on TV. How do people spend their
free time, how do people shop, make
choices about what they buy? How much
income do people have, how much money
do people spend on donations? How much
time do people spend volunteering? etc.

Think about trends in relation to young people in your area: are there more employment
opportunities or less? Are more young people living at home or less? Do they have the same
issues or are they changing?

Entrepreneurs look at current patterns to predict future trends. They do this by conducting an
‘environmental scan’ where any ‘change’ is considered as a challenge, opportunity or threat.
You can do the same.

Analysing trends is about looking beyond the trends – is about looking beyond the ”here and
now ” to what might be in the future. Can you imagine life now without the internet? Without
TV?

What will be the next big thing (or little thing!)? The best opportunities ari se from trends when
you can combine two of them.

1. Consider the founder of Moonlight Cinema in
Melbourne. He researched information from the
Census that indicated two of the favourite things
people like to do in Melbourne is go to the movies
and visit the Botanical Gardens. He put the two
concepts together and created Moonlight Cinema
– movies u nder the stars in the Botanical Gardens.

2. Eaglehawk Sales&Recovery Yard is an
enterprise that tapped into two trends – people’s
increasing concern for the environment and
therefore increasing rates of recycling combined
with consumer demand for good qua lity second
hand goods. Eaglehawk recovers unwanted goods
and resells them to the public.

3. Think about trends and technologies on the
horizon and how you might move into those areas,
says Sergio Monsalve, partner at Norwest Venture
Partners, a Palo Alto, California -based venture
capital group. He suggests, for example, thinking
about innovations related to the living room and
home entertainment systems now that companies
like Apple are developing new television
technologies. "What can that me an in terms of
new ways to live in your house and be
entertained?" he says.

Trends can be found through your observations of changes in the community and
environment around you. By watching and observing changes we can often identify ideas and
opportunities.

You can observe trends by talking to people, reading or just taking notice of things around you.

Look for any trends taking place in your community and society that may indicate there is a
business opportunity waiting to be developed. By mapping trends to see if they are increasing,
decreasing or changing shape you have the opportunity to capitalise on the changes.

Maybe you have observed how young people really want to buy recycled or unique clothing
but no store exists in your area. You also know that many of these young people are using e –
bay or the internet to buy things. And – you just happen to know a few young designers. Your
aim might be to find a way to establish a fashion website where young people can buy and sell
their seco nd hand clothes or unique creations online.

If you can explore trends, develop aims and then solutions you can create the right
environment for a business i dea.
Learning C HALLENGE no. 2:
Please gather a small group of your family members and some friends. Make a short
presentation of your business idea. Starting from this point each person, using Post -it notes or
small cards, writes down his/her ideas, and places them in the centre of the table. Everyone is
free to pull out one or more of these ideas for inspiration. Group members can create new
ideas, variations or piggyback on existing ideas. See what you gather!

Evaluating the business idea
Now you have a list of ideas and opportunities for developing a business . You generate lots of
ideas, some of which you’ll keep, and others which you’ll discard. You need to decide on one
or two ideas that you want to explore further by developing a more i n-depth Business Plan.

It is time for Evaluation! The evaluation of your ideas. You might use different methods and
techiques helping you to select the best idea:

Method 1: NAF ( Novelty, Attractiveness, Feasibility ) – this is a simple way of scoring/assessing
potential ideas/solutions. Give a score out of 10 for each of the three items:

 Novelty ( How novel is the idea? If it isn’t novel for this situation, it probably isn’t very
creative);
 Attractiveness ( How attractiv e is this as a solution? does it com pletely solve a problem?
Or is it only a partial solution?);
 Feasibility ( How feasibly is it to put this into practice? It may have been a really
attractive solution to use a time machine, but is it really feasible?). Once you have the
mark out of 30 for each potential ideas, you can easily rank them to then refine the
top few.

Method 2: How Might We – Asses your business ideas by reframing them as “How Might We”
questions. T he How Might We format could suggest you that an idea is possible and offer you
the chance to use it in a variety of ways. Start by looking at the ideas that you’ve generated.
Try rephrasing them as questions by adding “How might we” at the beginning. Now take a look
at your How Might We question, answer to it as much as possible and ask yourself if it allows
for a solution that you could transform into an enterprise . If it doesn’t, eliminate it.
Use this worksheet – turn your ideas into How Might We quest ions:
Idea 1: ………….

How Might We ……….
Idea 2: …………..

How Might We ……….

Method 3: PMI – Plus, Minus, Interesting1 – The PMI tool helps you to consider all sides of an
idea before a decision or commitment is made. It is an important evaluation tool. When doing
a PMI set out to first explore all the plus of each idea until you have exhausted your search.
Then explore the minuses until exhausted. Finally set out to explore in the interesting direction.
The goals are to eval uate as many ideas as possible, remembering that two people may see
the same idea differently. This may stimulate a creative connection later.
Example: ……..
PLUS
MINUS
INTERESTING
“What is interesting about this is…………….”
“It would be interesting to se e………………”

Finding out an idea of a business and putting it into practice are two different things. There are
a number of issues you need to consider when assessing your capacity such as:
• Resources – What resources do you have at your disposal that you can dedicate to the
development of a enterprise? This includes time, people, money, and assets.
• Commitment – Do you have the drive and motivation required to develop a enterprise, how
risk tolerant are you?

Using Resource Assessment Tool2 will help you understand the feasibility of your solution and
where you will have to seek help for the practical implementation of your idea. The main
elements of implementation that you’ll want to understand here are the distribution of your
solution, the partners you might need, and the capabilities necessary to execute.
Start to fill out the Resource Assessment worksheet:

1 PMI is one of a collection of three -letter abbreviation tools developed by Edward de Bono.
2 The Field Guide to Human -Centered Design By IDEO.org, 2015

Distribution
How are you
getting your
idea out into the
practice? Are
there multiple
concrete ways? Activities
What activities
will be required
to make your
idea work? Capabilities
What are you
already capable
of? Responsabilities
Who is responsible
for doing it? Still needed?
What have you
not done or
have yet?

List very carefully what you’ve already got and what you’ll need. Identify gaps and resources .
It’s a way of viewing what you want to do with a lens for implementing responsibility, capacity,
and staffing .

Your business needs to be based firmly on market reality and there is no better way to do this
than getting out there and doing market research.

Primary research includes talking to customers, observing the competition and potential
customers and testing your product with real customers.

Key Questions:

 YOUR CUSTOMERS?
Who will your target customer be?
How many customers are there?

Is the number of customers growing or decreasing?
What will your customers buy?
How many of your products/services will they buy from you?

 YOUR COMPETITION
Who are your main competitors?
What are the going prices?
What are the strengths and weaknesses of the products/services?
Why would customers buy from you rather than from your competitors?

Secondary research includes information from trade journals, competitors’ price lists and
literature, government reports, surveys and questionnaires, and the internet. You should do as
much market research as you can, particularly as much of it can be done quickly and cheap ly.
Build up as much knowledge and understanding as possible to help you answer the following
questions:

What will you have to do to sell to these
customers?

? Why will customers buy from you?

How many potential customers are there for
your product or service?

How will you reach them?

What potential share of the market can you
expect to get?

What price should you sell your product or
service?

Live Prototyping

A Live Prototype3 is a chance to run your
solution for a couple of weeks out in the real
world. Live Prototype is one of the most
powerful ways to test your solution in the
marketplace.

A Live Prototype, however, gives you a chance to test your solution in real -world conditions. It
can run from a few days to a few weeks, and is a chance to learn how your solution works in
practice. Live Prototypes are all about understanding the feasibility and viability of your chosen
idea.

The first thing to do is to determine what it is you want to test in your Live Prototype. It could
be the way that people find out about your product or how your service will run or how your
distribution model works. For example, you could run a business out of a kiosk for a week to
test a channel strategy. Once you’ve decided on what you’re testing, sort out the logistics of
your Live Prototype.

Do you need a physical space, additional staff, uniforms, a permit, or anything else? If you have
the capacity, think about running a few Live Prototype s at once. This will allow you to test a
variety of ideas quickly, and see how they work together, which may also be important. Never
stop iterating.

3 The Field Guide to Human -Centered Design By IDEO.org, 2015

If something went wrong on Day 1, try a new approach on Day 2. Live Prototypes are all about
learning quickly, iterating on the fly, and pushing your solution closer and closer to the real
thing. As always, capture multiple feedback from your team, your partners and the customers.

One of the key things to remember is:
“Customers will tell you everything you need to know.”

Evaluation of ideas ! Analysis! Evaluation! Analy sis! Evaluation! Analysis! Evaluation!

Analysis! Evaluation! Analysis! Evaluation! Analysis! Evaluation! Analysis! Evaluation!
Analysis! Research!

You should first looks at a business idea from four perspectives: company, customer,
competitor and collaborator. This approach allows you to scrutinize a business idea before
even approaching the topic of business development. Here's what you look at for each of the
four issues:
1. Company. Think of your idea in terms of its product/service features, th e benefits to
customers, the personality of your company, what key messages you'll be relaying and the
core promises you'll be making to customers. "Entrepreneurs are often so passionate about their ideas, they can lose objectivity," says Nancy
A. Shenker, president of the ONswitch LLC , a full -service marketing firm in Westchester, New
York. "Rather than taking the time to thoroughly plan and research, they sometimes plow
ahead with execution, only to spend valuable dollars on unfocused or untargeted activities."

2. Customer. There are three different customers you'll need to think about in relation to your
idea: purcha sers (those who make the decision or write the check), influencers (the individual,
organization or group of people who influence the purchasing decision), and the end users (the
person or group of people who will directly interact with your product or ser vice).

3. Competitor. Again, there are three different groups you'll need to keep in mind: primary,
secondary and tertiary. Their placement within each level is based on how often your business
would compete with them and how you would tailor your message s when competing with
each of these groups.

4. Collaborators. Think of organizations and people who may have an interest in your success
but aren't directly paid or rewarded for any success your business might realize, such as
associations, the media and other organizations that sell to your customers.

A SHORT REVIEW:
Take some time to first evaluate your business idea to see if it has the
legs you hope it does:
1. Identify a Target Market
2. Know What Makes Your Product/Service Different
3. Research the Competition
4. Conduct a Financial Feasibility Analysis

10 Bizarre Business Ideas
That Made Millions
https://youtu.be/WBe9lyv6
U_g

Starting a business

Here are 10 steps that provide an overview of the
basic steps required to start a business successfully.
Take one step at a time, and you'll be on your way
to business ownership.

STEP 1: GET INSPIRED
All businesses start from a common point — an idea.
You may have dreamed of starting your own business for years, or inspiration may have hit
you unexpectedly. Regardless of the source, the first step of starting your own business is
coming up with a business idea.

STEP 2: DO YOUR RESEARCH
You've identified your big idea, now it's time to balance it with a l ittle reality. Are you really
ready to start a business? The next stage of research you conduct in your business start -up
process will help you figure out if your business idea has potential.
In order for a business to be successful, it must solve a proble m, fulfill a need or offer
something the market wants. There are a number of ways you can identify this need, including
research, focus group and even trial and error. As you explore the market, some of the
questions you should answer include:
 Is there a need for your anticipated products/services?
 Who needs it?
 Are there other companies offering similar products/services now?
 What is the competition like?
 How will your business fit into the market ?

STEP 3: MAKE A PLAN
You need a plan in order to make you r business idea a reality. If you intend to seek financial
support from an investor or financial institution, a formal written business plan is a must.
Even if you don't anticipate seeking financial support, a simple business plan can give you
clarity abou t what you hope to achieve and how you plan to do it.
In general, your business plan should outline your business goals and the motivation behind
them, as well as your plan for reaching your goals in terms of marketing and funding.

STEP 4: PLAN YOUR FINANCES
Starting a small business doesn't have to require a lot of money, but it will involve some initial
investment . There are a number of ways you can fund your business , including:
 Financing
 Small business loans
 Small business grants
 Angel investors
You can also attempt to get your business off the ground by bootstrapping using as little
capital as necessary to start your business.

STEP 5: CHOOSE A BUSINESS STRUCTURE
Your small business can have different legal forms. The business structure you choose will
impact many factors from your business name, to your liability, to how you file your taxes.
You may choose an initial business structure, and then reevaluate and change your structure
as your business grows and needs change.

STEP 6: PICK AND REGISTER YOUR BUSINESS NAME
Your business name plays a role in almost every aspect of your business, so you want it to be a
good one. Make sure you think through all of the potential implications as you explore your
options and choose your business name .
Once you have chosen a name for your business, you will need to check if it's trademarked or
currently in use. Then, you will need to register it. A sole proprietor must register their
business name with either their state or county clerk.
Corporations, LLCs, or li mited partnerships typically register their business name when the
formation paperwork is filed.
Don't forget to register your domain name once you have selected your business name.

STEP 7: GET LICENSES AND PERMITS
Paperwork is a part of the process whe n you start your own business. There are a variety of
business licenses and permits that may apply to your situation, depending on the type of
business you are starting and where you are located. You will need to research what licenses
and permits apply to your business during the start -up process.

STEP 8: SET UP YOUR BUSINESS LOCATION
Setting up your place of business is important for the operation of your business, whether you
will have a home office , a shared or private office space, or a retail locati on.
You will need to think about your location, equipment, and overall setup, and make sure your
business location works for the type of business you will be doing.

STEP 9: CHOOSE YOUR ACCOUNTING SYSTEM
Businesses run most effectively when there are systems in place. One of the most important
systems is an accounting system. Your accounting system is necessary in order to create and

manage your budget, set your rates, conduct business with others, and file your taxes. You can
set up your accounting sy stem yourself, or hire an accountant to take away some of the
guesswork.
STEP 10: PROMOTE YOUR SMALL BUSINESS
Once your business is up and running, you need to start attracting clients and customers. You'll
want to start with the basics by writing a uniqu e selling proposition (USP) and creating a
marketing plan. Then, explore as many business marketing ideas as possible so you can
decide how to promote your business most effectively. Once you have completed these
business start -up activities, you will ha ve all of the most important business bases covered,
and be ready for your business success.

Business forms

DETERMINE YOUR LEGAL BUSINESS STRUCTURE !
Before you can register your company, you need to decide what kind of entity it is. Your
business structure legally affects everything from how you file your taxes to your personal
liability if something goes wrong.

If you own the business entirely by yourself and plan to be responsible for all debts and
obligations, you can register for a sole propri etorship . Alternatively, a partnership , as its name
implies, means that two or more people are held personally liable as business owners.

If you want to separate your personal liability from your company's liability, you may want to
consider forming one o f several different types of corporations . This makes a business a
separate entity apart from its owners, and therefore, corporations can own property, assume
liability, pay taxes, enter into contracts, sue and be sued like any other individual. One of the
most common structures for businesses, however, is the limited liability corporation (LLC).

This hybrid structure has the legal protections of a corporation while allowing for the tax
benefits of a partnership. Ultimately, it is up to you to determine which type of entity is
best for your current needs and future business goals.

1. Sole proprietorship
This is the simplest form of business entity, and it is used for examples by more than 70
percent of businesses in the United States . With sole proprietorship, one person is responsible
for all of a company's profits and debts.

2. PARTNERSHIP
This entity is owned by two or more individuals. There are two types: general partnerships,
where all is shared equally; and limited partnerships , where only one partner has control of its
operation, while the other person or persons simply contribute to and receive only part of the
profit. Partnerships carry a dual status as a sole proprietorship or limited liability partnership
(LLP), depending o n the entity's funding and liability structure.

3. LIMITED LIABILITY COM PANY (LLC)
A limited liability company is a hybrid structure that allows owners, partners or shareholders
to limit their personal liabilities while enjoying the tax and flexibility be nefits of a partnership.
Under an LLC, members are protected from personal liability for the debts of the business, as
long as it cannot be proven that they have acted in an illegal, unethical or irresponsible
manner in carrying out the activities of the b usiness.

4. CORPORATION
The law regards a corporation as an entity that is separate from its owners. It has its own legal
rights, independent of its owners — it can sue, be sued, own and sell property, and sell the
rights of ownership in the form of stocks.

Am I ready for becoming an entrepreneur?

Here are five quick personality assessments to evaluate before taking the entrepreneurial
plunge:

ARE YOU SANTA OR AN ELF ?
Entrepreneurship requires managing a wide variety of tasks as part of the business , from
marketing and accounting to training, customer service and more. Can you wear multiple hats,
as Santa does with Christmas, or do you prefer to be the elf that loves to execute specific
tasks? Do you take initiative or do you want clear instructions? Santas make better
entrepreneurs than elves do.

WHAT'S YOUR RELATIONSHIP WITH MONEY ?
Starting a business requires money to start, to operate and for you to live on while it scales. If
you are a big spender and aren't great at managing money, those bad ha bits are likely to
follow you into a business. And if you are usually unable to make worthwhile investments in
the future of your business for fear of ending up living in a cardboard box if things go wrong
then you may end up penny wise and pound foulish , as they say. Having a solid, non -emotional
money relationship will help you make wise business decisions.

ARE YOU COMFORTABLE F LYING BLIND ?
The only thing that is certain in business is that nothing is certain. Are you comfortable with
being uncomfortable? Can you handle taking educated risks and surviving the constant ups
and downs of owning a business? If you are looking for the certainty or a drama -free zone, you
may find yourself terrified of the entrepreneurial roller coaster.

ARE YOU REA DY TO COMMIT ?
Running a successful business is not just about having great ideas. It's more about strong
execution. So, if you have a hard time staying focused, you are lousy with commitments and
you're averse to the idea of working day in and day out on t he same thing, then
entrepreneurship may just be a passing fancy for you.

WERE YOU BORN FOR BUS INESS ?
Were you interested in business as a child? Did you seek out entrepreneurial roles in school, in
social organizations or even in your previous job? A nat ural inclination of past interest in
entrepreneurship seems to be a good potential indicator of future success.

Learning C HALLENGE no. 3:
Please take this Entrepreneurial Potential Self A ssessment . This questionnaire includes 50
statements, and will take about 10 minutes to complete. There are no right or wrong answers.

https://www.bdc.ca/en/articles -tools/entrepreneur -toolkit/business -assessments/pages/self –
assessment -test-your -entrepreneurial -potential.aspx?page=1

Entrepreneur Self
Assessment: 9 Professional
Tools and Tests
http ://grasshopper.com/blo
g/9-professional –
assessment -tools/

PRACTICAL ACTIVITIES/RESOURCES

EXERCISE no. 1:

On a large sheet of paper, map out anyhing that will imp act your idea of social enterprise.
Consider:

Opportunities: Obstacles: Other factors:

EXERCISE no. 2: Entrepreneurial Potential

LIST YOUR SKILLS .
You don’t have to be an expert to have skills in an area. You have a unique set of skills you can
build on.
CONSIDER THE FOLLOWIN G AS YOU BUILD YOUR SKILL LIST :
 What is it that you would enjoy doing even if you didn’t get paid for it?
 What do you enjoy doing, at work and during your free time?
 What do you wish you could be doing?
 What tasks do you dislike and why?
 What topics do you enjoy learning about?
 Do people come to you for advice about certain topic s?

EXERCISE no. 3 :
Interview an entrepreneur. Find out what “rules” he or she followed to become a
successful entrepreneur. Ask your entrepreneur if he or she agrees with Sam Walton’s rule
10.

RESOURCE no. 1: International network:

Youth Entrepreneurship and Sustainability (YES)
YES is a non -profit organization that supports youth employment and entrepreneurship.It
has a network that operates actively in fifty -five countries around the world. It promotes
youth education, skills development, business developmen t services, markets, mentors
and credit in the context of sustainable development. With the support of the
Headquarters based in Cambridge, MA, the country networks work independently to
identify, design and implement specific training and development prog rammes for young
entrepreneurs. These programmes are designed to address the countries’ specific issues
on youth employment and entrepreneurship .
https://en.wikipedia.org /wiki/Youth_Entrepreneurship_and_Sustainability
http://www.yesweb.org/
Rule 10: BREAK ALL THE RULES . Swim upstream. Go the
other way !

RESOURCE no. 2:
BOOK S RECOMMENDATION !
http://www.businessinsider.com/best -books -for-entrepreneurs -to-read -2016 -1/#as -a-man –
thinketh -by-james -allen -8

RESOURCE no. 3: Online course for Young entrepreneurs
http://imedia.sba.gov/vd/media1/training/YoungEntrepreneurs/player.html

SOURCES OF INFORMATION

https://www.thebalance.com/should -i-start -a-business -2951859
http://www.wikihow.com/Start -Your -Own -Business
http://www.cslewispublicity.com/wp -content/media/ROTHPressKitv4.pdf
https://publications.theseus.fi/bitstream/handle/10024/104130/Olga%20Balakina_Thesis_Imp
ortance%20of%20the%20Entrepreneurship%20education.pdf?sequence=1
https://www.entrepreneur.com/article/246454
https://www.entrepreneur.com/formnet
https://www.entrepreneur.com/article/244210
https://www.mentalhealth.org.uk/sites/default/files/developing -a-business -idea.pdf
https://canvanizer.com/how -to-use/how -to-develop -your -startup -idea
https://www.entrepreneur.com/article/225513
https://www.entrepreneur.c om/article/70518
http://www.successharbor.com/start -a-business -02182015/
http://www.entrepr eneurshipinabox.com/229/business -ideas -book -how -to-create -one/
Louise Witt. “What’s the Right Time to Become an Entrepreneur?” Fortune Small Business