becoming self-reliant through personal business enterprises
TRANSCRIPT
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Introduction Contd
Do you have a mental picture of who your
customers are likely to be? What of your
competitors? How are you going to beat
them? You need to plan because starting a
business without adequate planning is like
driving a car without headlight at two
hundred kilometers per hour in the middle ofrainy night.
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ENTREPRENEURIAL TRAITS
As an entrepreneur you perform two distinct yet closelyintertwined functions: Entrepreneurship and management.
Entrepreneurship is the quality which enables people to starta new business or vigorously and innovatively expand an
existing one. There are some basic character traits existents in an
entrepreneur that enables him to seek-out businessopportunities, conceptualize and initiate business projectsgather the physical, financial and human resources needed to
start the business, set goals for themselves and theirenterprises and guide the enterprise and its people toaccomplish the goals.
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Entrepreneurial Traits contd
Take a minute and objectively rate yourself with the profile of an entrepreneur below
Self Confidence -Belief in your ability of Independence
-Independent
-Optimism
Strong will power -persistence and perseverance
-Determination
Task/Result oriented -Achievement oriented
-Hard work, drive, energy- Initiative
Risk taker -Like challenges
-judicious risk taking ability
Leadership -Good Communicator
- Gets along well with others
-Responsive to suggestions
Originality -Innovative, creative
-Resourceful
-Versatile
Future Oriented -Foresight, vision, perceptiveness
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Entrepreneurial Skill
Technical
Creative
Human
Innovative
Design
Conceptual
Management
Marketing
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Validating Your Business Ideas
The most common and reliable sources of Business ideas are educational skills andworking/Environmental experiences in ones life. The basic foundation for any successful venture istherefore the self conviction on the part of the entrepreneur that success can be achieved.
Developing appropriate and harvest answers to the following under listed questions would enable youvalidate your business idea
Is it practical?
Is it legal?
What service or product will I sell
Does it meet a need(s) of other people
Are they willing and able to pay for it.
Can it be produced at the right quality and in the required quantity
Can it be produced in am acceptable form as required by those wanting it.
Has it linkages possibilities
Can it meet the Constant changes in users, need and taste
Is there a prototype of the product existing
What is your Business advantage over existing firms
What niche or gap would my business fill
Can I create a demand from my business
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Validating My Resources
After validating your business idea the next stage is tovalidate your resources what resources do you need totranslate your idea into a business. These resourcesinclude:
Business Premises
Raw materials
Machinery/ Equipment
Personnel
Funds
How much of theses resources have you got now and howmuch of them do you need. e.g
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Business Premises
Are you renting or Building? What is yourproduct production requirement? Is there anyregulatory requirement in the sitting of the
project. Have your proposed businesspremise taken into consideration NAFDAC orSON requirements, which is more economicalto you at this stage of your business, to build
or to rent.
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Raw Material
Many a times people assure through albeit wrongly that thereis an abundant supply of the raw material for their project.There is the need to take a list of the required raw material foryour project. Are they seasonal goods? Are they always
available, is the one in your locality of the right quality andquantity for your business. What of cost? Are they bothavailable and affordable? Many small business ventures havecollapsed due to miscalculation of the availability of their rawmaterial. Information on raw material can be obtained from
RMRDC
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Marketing
It is very vital to keep in mind that your business begins and ends with themarketplace. It begins by identifying customer needs and it ends with thesatisfying of those needs and it ends with the right time and at the right price. Aprice that must also give an adequate return on your investment.
As a prospective new enterprise, have you taken a minute to work out who areyour major competitors? What is their market share? How do their products /services compare with yours? How do you anticipate that they will react to a newentrant into their market? How can you beat them?
What are the unique selling points that differentiate your product from theirs?Have you done any demand assessment of your product.
Who are your customers? Do you have several or will your sales be dependent onone or two. How do you intend to sell your products or services? Who will do theselling? Will you be adverting, calling on prospective customers or general selling
in the market. product
Price
Place
Promotion
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Sources of Assistance
Local support Institutions and Agencies. This is to familiarize you with the variousagencies that provide assistance to small enterprises and to enable you identifythe particular assistance each of the Agencies provides.
A FEDERAL GOVERNMENT INSTITUTIONS
SMEDAN-Information in machinery, finance ,Enterprise training, bankablebusiness plans.
RMRDC- Information on Raw material Corporate Affairs Commission- Company Registration
NAFDAC- Government Regulations on Food related products and services
SON- National Standards on Products
BANK OF INDUSTRY Financing
NACRDB- Financing
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Sources of Assistance (Contd)
B STATE GOVERNMENT AGENGIES
State Ministry of Commerce and Industry- Information on
the states economic priority projects and feasible MSMEs
in the State.
State Investment corporation Agencies- Information on
financing and available extension service facilities in the
state.
NON-GOVERNMENTAL ORGANIZATION
NASSI
MAN
NASME
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Production Management
Production management is the process of the
effective planning and control of the
operations of that section of an enterprise
devoted to transforming materials intofinished goods.
Production planning-Factory location and
layout
Production Strategy
Production Policy
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Human Resource Management
The human resource is the greatest asset in
any enterprise. It is the management of
people within the enterprise towards the
attainment of the goals and objectives of thatenterprise.
It entails: Recruitment, Placement and
induction, Manpower planning, Training anddevelopment, Reward system, performance
appraisal, Industrial democracy , etc
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Financial Management
Financial management is that managerial
activity(interplay) which ensures that financial
resources are obtained and utilized in the
most prudent way for the attainment of theobjectives of the enterprise.
Financing Decision
Investment Decision
Dividend Decision
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The Ten Commandments of Small-
Business Finance
Thou shall set clear financial goals
Thou shall prepare personal financial
statement
Thou shall prepare business financial
statements
Thou shall support projections of future cash
flows with sound logic
Thou shall decide upon a target capital
structure
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The Ten Commandments of Small
Business Finance Contd
Thou shall recognize all current sources of
financing
Thou shall consider alternative sources of
financing
Thou shall recognize exposure to business risk
Thou shall ensure that the financial plan fits
with the overall business plan
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Pre-Investment Proposal
Now that you have some basic information on your product, the raw material, themarket for the product, the machinery and equipment and personnel. Make a trialpreparation of a pre-investment proposal using the following format
Background history of yourself
Nature of the Project with description of the product or service to be provided
Market- size, competitors
Sales Strategy and method Raw material supply and needs
Production process
Product cost
These are all estimates. For you to start a real business you need a detailedBusiness Plan but this attempt with a pre-investment proposal would be very
useful to you in the process of writing your detailed business plan
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The Business Plan
Management
Manpower Requirement
Product or Services Market and Marketing
Production Process
Financial Analysis Profitability Analysis
Evaluation of the Project
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Path to Business Success
Knowledge
Skill
Motivation Ability
Resources
Delighted Customers Innovation
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The Small & Medium Enterprises Development Agency
of Nigeria (SMEDAN)
SMEDAN is one-stop-shop for starting, resuscitating andgrowing MSMEs in Nigeria
Voice of MSME.The Vision of SMEDAN is to establish a structured and
efficient MSME sector that will encourage and enhancesustainable economic development of Nigeria.
The Mission is to facilitate and promote the access ofMSMEs to all those resources required for their growthand development.
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The SMEDAN Mandate
Stimulating , Monitoring, and Coordinating the development of theMSMEs sector;
Initiating and articulating policy ideas for small and mediumenterprises growth and development;
Promoting and Providing access to industrial infrastructure such as
layouts, industrial parks, etc.; Linking MSMEs to internal and external sources of finance,
appropriate technology, technical skills as well as to largeenterprises;
Promoting and facilitating development programmes, instrumentsand support services to accelerate the development andmodernization of MSMEs operations;
Serving as a vanguard for rural industrialization, poverty reduction,job creation and enhanced livelihoods;
Intermediating between MSMEs and the Government;
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SMEDANForeign & Local
Investors
Resource Partnersincluding public &
private sector, MBOs,Agencies, NGOs,Banks, Donors, etc
Government
INTERFACE BETWEEN SMEDAN AND OTHER
STAKEHOLDERS
MSMEs
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THE ROLE OF SMEDAN IN EMPOWERING MICRO,
SMALL, AND MEDIUM ENTERPRISES
ACCESS TOFINANCEMARKET
EQUIPMENT
RAW MATERIALS
WORKSPACE
ESTABLISHMENTBSCs.
BISsMSMEs DEV. CENTRES
BUSINESS INFORMATION
COLLABORATIONSTATE GOVT.
BMOs
NGOs
MULTILATERALS
PRIVATE ORGANs
OTHER FED. GOVT. ESTABs.
POLICY ADVOCACYTAX MATTERS
COMPETITION
EXPORT PROM.
REGISTRATION
LEGISLATION
REGULATIONS
INCENTIVES
CAPACITY BUILDING:
GEDP
YEDP
WEDP
TOT
BUSINEESS DEVELOPMENTSERVICES
INDUSTRAL PARKINDUSTRIAL STRATEGYAND POLICYFINANCE AND TECHNICALASSISTANCE
BUSINESS
ENTERPRISES
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Conclusion
Working for yourself amounts to being your
own boss. Your destiny and fate lie with you
and you alone. There is no one to tell you
what to do, how to do it, when, where or forwhom to do it. Remember that once on your
own, you are not likely to be able to do
everything you want to . You have to enjoy what you are doing and
strive to put in your best at all times.
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Conclusion Contd
Being on you own amounts to you either sink
or swim. You have to be every where at every
time, doing the right things at the right time
delighting customers by exceeding theirexpectations.
l d
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Conclusion Contd
The time is now for you to make active
positive use of your instincts, insight andperceptions to manipulate and manage them
to propel you to being an entrepreneur-inspite
of the obvious dangers and challenges. You dont make an omelet without breaking
an egg. We therefore crave your indulgence to
take a dive into the waters of
entrepreneurship and become self-reliant
through starting your own business
enterprise.
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WELCOME
THEN GET STARTED! AS THEREIS NO TIME TO PONDER.
WELCOME TO THE WORLD OFENTREPRENEURS
WE WILL CONTINUE THEDISCUSSION IN YOUR JEEP.
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