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Business Opportunities in Sino-U.S.

Entrepreneurship E Business Program

Presented by Prof. Angela Wu, CPA & MBA,

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Successful Chinese Start-ups

• Three top performed Chinese companies are selected as Web 20 stocks by Business Week: – Ctrip– Shanda– Sina

(based on info/data on September 5, 2005 edition of Business Week)

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Billion Dollar Chinese Start-ups

• UTStarcom

• Sina

• Netease

• Baidu

• Focus Media

• Shanda

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Entrepreneurship

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.

Source: Adapted from Co-Active Coaching (Davies-Black Publishing)

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What it takes: The Wheel of Entrepreneurship

Adaptability

Competitiveness/Drive

Confidence/Vision

Discipline/Perseverance

Risk Taking

Listening/Understanding

Persuasiveness

Organization

How well do you do on each criteria?

What can you do to overcome shortcomings?

Ask yourself:

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Legal Organizational Forms

• Sole Proprietorship• Partnership• Corporation• Limited Liability Corporation

• http://www.federaltaxid.us/• http://www.dos.state.ny.us

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Financing Your Business

Types of financing:• Debt financing: involves an interest bearing

instrument, usually a loan.– Short term money is used for working capital.– Long term debt (>1year) is used to purchase assets.

• Equity financing: offers the investor some form of ownership.

• Internally generated funds: are used most often.

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Business Plan Format• Executive Summary• Business Description• Market Analysis• Competitive Analysis• Marketing Strategy• Operational Plan• Organizational & Management Plan• Risks and Mitigation• Timeline/ Action Plan• Long Term Development and Exit Strategy• Financial Information• Exhibits/Appendices

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The Pitch

How convincing a case can be made for the business idea?

1. The Opportunity

2. The Management

3. The Economics

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Marketing Mix Decisions

• Product: Quality of components or materials, style, features, options, brand name.

• Price: Quality image, list price, quantity, discounts, quick payments credit.

• Place: Use of wholesaler and/or retailers, type and number of wholesaler or retailers.

• Promotion: Media alternatives, message, media budget, role of personnel selling.