Lesson 4:

ENTREPRENEURSHI
P:
ENTREPRENEURIAL
MINDSET
 What is Mindset?

Mind

The ability to think and imagine

set

Group of things
What is Mindset?

 Mindset

 A mindset refers to a set of assumptions, methods or notations held by one or more people
or groups of people which is so established that it creates a powerful incentive within these
people or groups to continue, or tools.

 This phenomenon of cognitive bias is also sometimes described as mental inertia,

 According to Dr. Carol Dweck from Stanford University, US, there are two sets of
mindset:

 A fixed mindset
 A growth mindset
What is Mindset?

 In a fixed mindset, people believe that their basic qualities, like their intelligence or talent,
are simply fixed traits (rigid). They spend their time documenting their intelligence or
talent instead of developing them. They also believe that talent alone creates success-
without effort.

 In growth mindset, people believe that their most basic abilities can be developed through
dedication and hard work-brains and talent are just the starting point. This view creates a
love of learning and a resilience that is essential for great accomplishment. Virtually all
great people (including entrepreneurs) have had these qualities.
Adolescent Brain Development
Vision and Mission in Entrepreneurship

 Vision 
 - a fundamental element in becoming an entrepreneur.
 - It is powerful motivating force that gives the entrepreneur a sense of perspective of what
he hopes, expects and desires for his intended business.
 - It is through vision that an entrepreneur is able to picture in his mind the kind of new and
better world he wishes to create. With vision an entrepreneur develops a sense of direction
of where he wants his business to proceed.
What Vision Provides to the Entrepreneur

 1. A sense of direction by being the light at the end of the tunnel.

 Mission 
 - a formal attribute expressed of what the entrepreneur hopes and wishes to achieve.
 - It is also defines the scope and parameter of his vision.
 - It takes its shape and form as a prescriptive tool to help him clarify his option and
decisions, communicate his value system and commit his resources, time and energy to
goals and targets he has chosen.

 Mission is the articulation of this vision through which the entrepreneur develops a 
comprehensive but clear and identifiable perspective of what he wants to pursue.
Exploring Ideas and Opportunities

 In the entrepreneurial landscape, new ideas and opportunities are constantly in the
conscious mind of the entrepreneur.
 Entrepreneurs are attuned to opportunities and are always on the lookout for them.
 Entrepreneurs generates ideas for innovation after exploring various opportunities
which, in turn enables him to come up with different and better ideas.
 Entrepreneurship is about creating value through the creation of something new that is
different and better but not necessarily original fir the marketplace.
Exploring Ideas and Opportunities

 Opportunity and Innovation the opportunity provides the entrepreneur the chance to do
something differently and better while innovation is the means of doing something
differently and better. Thus innovation is a means of exploiting a business opportunity.

 Opportunity offers the possibility of creating new value but it is often the case that the
value created may not be pure as when an entrepreneur invents a new product to be
introduced in the market.
Form of Opportunity:

 1. A new product – can be a physical device, something that will add value to an existing product.
 2. A new service – refers to actions which will satisfy a particular need or solve a particular
problem.
 3. New means of production - when the new means producing an existing product can deliver
additional value, like producing a product at a lower cost.
 4. New distribution route – a new way of getting the product to the end-user, which the customer
finds it easier, more convenient and less time-consuming.
 5. Improved service – offering additional service element to the product like offering training in
the use of the product.
 6. New networks and relationship – this can mean building relationship
based on trust which creates value by reducing cost in communication, monitoring and in
strengthening networks against fierce competition.
Gaps for Opportunity and Innovation:

 1. Unexpected Success and Failures – happens when certain lines of product or service that you do not
expect to be a copout suddenly surges upward and generates more profit than the ones you intend to sell.
 2. The Deviation from Conventional Wisdom - when deviation on the generally accepted belief, opinion,
judgment, or prediction about a particular matter.
 3. The Need for a Process Creation or Process Revision – a particular process turned into an
opportunity for innovation.
 4. Change in Society Structure and Perception - influenced by the influx of development and change in
consumer perception brought about by the evolution of social, political, cultural and economic condition.
 5. Location – an entrepreneur can use location as a means to cater to the various needs of people coming to
the area in an innovative way.
 6. New Concepts – entrepreneurs have to continuously learn and develop new knowledge to be able to
come up with better product or service.
Rules for Successful Innovation

 By: Beorge Ballas and David Hollas (Authors of the Book Making of an Entrepreneur)
 1. Relative advantage over existing products
 2. Must be compatible with existing attitudes and beliefs
 3. It should not be complex
 4. Benefits of innovation must easily be communicable
 5. The innovation should be divisible – users can try the innovation without incurring a
large risk
 6. Buyer must believe that innovation satisfies one of his needs by giving some immediate
benefits
Lesson 5: Entrepreneurial
Options: Start-up , Buy out or
Franchising
Creating a New business

 If you decide to start a new business, you will need to spend time developing your business
idea. One of the greatest advantages of being an entrepreneur is being able to work on
something that interests you and that you are passionate about.
 Starting a business from scratch can be overwhelming for first-time entrepreneurs. If you
have a great business idea and are ready to work hard to build it from the ground up, then
you may wish to start your own business. But if you want to hit the ground running and
avoid some of the common start-up pitfalls, then buying an existing business or a
successful franchise may be a better option for you.
Starting your own business

 Benefits
 - Complete freedom to design and manage the business according to your vision.
 - Not bound by anyone else's rules, history and assets.
 - Opportunity to carve out new niche in the market.
 - Can be less expensive than buying a successful business.
 Challenges
 - Can take time to become profitable.
 - There is no guarantee of business success and a high rate of failure for new businesses.
 - Can be more difficult to get financing because lenders or investors are taking a risk with
your idea.
Factors to be considered in creating and
building a successful start-up business
 Great idea – No business can develop in the absence of a great idea. A great and a
practical idea is the only thing on which the development of your business will depend.
Moreover, as a lot of companies are involved in the market, you need to have a unique idea
that stands out.
 Funding and budget - The next important factor that should be considered involves the
funding of your business. You need to properly identify the sources through which you will
be able to get the funding for your business. Moreover, it is better to have a plan so that the
budget of a company can be properly maintained.
 Analysis of competitors – You need to know what your competitors are doing and what
are their strategies? With this knowledge, you will be able to take appropriate decisions
about your company. It will also help you in developing a much more effective strategy for
your business.
Factors to be considered in creating
and building a successful start-up business
 An effective business plan – No business can develop fully in the absence of a business plan. Writing a
business plan can help you determine if your idea is feasible and provide direction. With a business plan,
you will be able to know every next step that should be taken.
 Legal documentation – The next factor that needs to be considered is the completion of legal documents.
For the sale of some specific products and services, there are some requirements for the preparation of
legal documents. Make sure you have already done all the legal documentations for your business.
 Positive attitude – It is one of the most important things that will help you in passing all the challenges
and difficulties. There will be a lot of risk and hurdles you will face in this process and the only thing that
can save you will be your positive attitude. You will have to work to develop a company of your own.
 Know when you need help - The development of a business is not a matter of seconds, it will involve a
lot of time that is spent with hard work. However, in this process, you will be needing the help of some
experts. Make sure you already have an adviser who can provide you with the best advice at the hour of
need.
Buying an existing Business, its advantages
and disadvantages
 Advantages
 There is an existing customer base.
 You do not have to purchase equipment and stock.
 Previous financial records give you an estimate of running costs and profits.
 Disadvantages
 The business may have financial or legal problems.
 The business's success may depend on the skills and experience of the previous owners.
 The previous owners may be selling as they see grow or expand the business.
Franchising: How to Franchise

 What is Franchising? Franchising is a legal and business relationship that can help grow your
business. A franchise is created by a legal agreement that involves the license of trademark, the
payment of a fee, and a control over the operations of a business.
 The following are the steps to franchise your business:
 1. Determine if Franchise is Right for Your Business
 2. Franchise Disclosure Document
 3. Operations Manual
 4. Register Your Trademarks
 5. Establish Your Franchise Company
 6. Register and File your FDD
 7. Create Your Franchise Sales Strategy and Set a Budget
Going into a franchise

 Advantages
 You are supported by the franchisor and have access to training, information and resources.
 Market exposure is higher than with most businesses is an established brand.
 Your expenses may be lower through the collective buying power of the franchise.
 Disadvantages
 You cannot run your business independent of the franchisor.
 If you want to make changes to your business you may not be able to. You can be restricted
by your franchise agreement.
 Your reputation can suffer if other franchisees have a poor reputation.
Lesson 6: The Entrepreneur's
Business Plan
Uses of the Business Plan