Post on 14-Apr-2018
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Enterprise level tools for
innovations, business plan
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Innovations and entrepreneurship
Innovation and entrepreneurship are consideredas increasing economics vector, leading tocompetitiveness and development.
The successful entrepreneurial is usually based ona significant innovation.
Innovation activities are one of the important
reactions to the challenges.
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The situation regarding innovationan entrepreneurship
Innovation system presents actors, institutionsand their relations and interactions which areinvolved in the innovations.
Innovation process:
- new idea;
- interest;
- evaluation;
- implementation/adaptation.
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Innovation behavior of theenterprise
External factors
- market environment characteristics
- regional institutional characteristics
- policy institutions
Internal factors
- organizational
- personal- financial, etc
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macro-level
micro-
level
labour
resourcesknowledge
finance
enterpriseproduct-, process-,
innovation
costumers/consumers
governance
system
extension services,
consultancy
research &
education
markets/
competitors
informationexchange
structural
change
Information exchange
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Entrepreneurship development
Entrepreneurship can be defined as the process ofusing private initiative to transform a business conceptinto a new venture or to grow and diversify an existing
venture or enterprise with high growth potential.
Entrepreneurs identify an innovation to seize anopportunity, mobilize money and management skills,and take calculated risks to open markets for new
products, processes and services.
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Sources forinnovative
idea
Analyze market,customers and
environment;
Analyze your
existing business
Check your idea;
Check yourself
Evaluation
level
Implementation Results
Innovation idea
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Tools for innovationsprocesses
Idea generation brainstorming, macroscreening, micro screening, SWOT analysis
Feasibility
Capability
Launch & Rollout
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Idea generation &brainstorming
Brainstorming is a dynamic tool, where quantitiesof ideas are offered with no criticism.
It can help people solve problems, develop newproducts or services and increase productivity.
The brainstorming is a good initial one for theBusiness Plan to generate and select ideas of
products/services business.
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Brainstorming
All members of the group must participate. Becreative. The more ideas, the better.
No idea should be blocked.All ideas will berespected and not evaluated. Do not criticise orjudge. All ideas are equally valid at this point.
Ideas already mentioned must be avoided.
The ideas should not be detailed. Keep ideas brief,do not tell stories
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Macro screening
The Macro Screening is a very important steppositioned between the project idea generationand the final decision about the most promising
business idea.
Macro Screening helps to do a first selection; itslike pouring all these ideas into a funnel.
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Micro screening
The Micro Screening links the macro screeningwith the SWOT Analysis (strengths, weaknesses,opportunities, threats), hence being the crucial
nexus between these two.
It adds quality to the selection process by addingdifferent parameters related to economicjudgements (market, skill availability, technology,
etc.).
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Micro Screening Table
PROJECT
good or service
Solvent
demand
Availabilit
y of
qualified
personnel
Availabilit
y of
technolog
y /
equipmen
t
Availabilit
y of raw
material
TOTAL Competit
ors
Corrected
TOTAL
Critical
success
factors
( + ) ( + ) ( + ) ( + ) ( = ) ( - ) ( = )
Scoring system: 5 extremely high ; 4 high ; 3 average ; 2 fair; 1 poor; 0 absent
Critical success factors: write text
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SWOT analysis
The SWOT Analysis (strengths, weaknesses,opportunities, threats) is based on these concreteproject ideas.
It is quite a simple but very powerful tool whichenables the participants to do a propercomparison of the last three projects remainingafter the micro screening process.
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Innovation Life Cycle Process
Ideation
Concept development
Evaluation (business and technical)
Commercialization
Improvement innovation
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Business plan based on
Entrepreneurship
The business idea
Business areas
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For preparing a Business Plan we must answer afollowing questions:
1. WHAT is a Business Plan?2. WHO needs a Business Plan?
3. HOW to prepare a Business Plan?
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1. What is a business plan?
Business planning is about results.
A business plan is any plan that works for abusiness to look ahead, allocate resources, focuson key points, and prepare for problems and
opportunities. Businesses need plans to optimize growth and
development according to priorities.
A business plan is like a map and a compass for abusiness.
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presentation
plan
Working
planmini-plan
Business plan
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The Different Types of Business Plans
Business plans are also called:
- strategic plans
- investment plans
- expansion plans
- operational plans
- annual plans
- internal plans
- growth plans- product plans
- feasibility plans and many other names.
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2. Who needs a businessplan?
You need a business plan if youre running abusiness;
You need a business plan if youre applying for abusiness loan;
You need a business plan if youre looking forbusiness investment, new products or new services;
You need a business plan to communicate with a
management team.
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3. How to prepare a business plan?
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Is There a StandardBusiness Plan?
A normal business plan, includes a standard set ofelement. Plan formats and outlines vary, butgenerally a plan will include components such asdescriptions of the company, product or service,market, forecasts, management team, andfinancial analysis.
Your plan will depend on your specific situation.
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Executive summary
Business description:
products and services offered
Market strategies
Competitive analysis
and positioning
Operations andmanagement plan
Outline of a business plan
Financial components
- condensed information
on each
of the chapters bellow- type of business;
- products and services
offered;
- ownership of the business
and its legal structure;
- profitability
consideration.
- market and target market;
- demand for the product
or service;
- promotion;
- dissemination and
delivery;
- pricing strategy.
- competition analysis;
- identification of
competitive strenght
position.
- operations plan;- management team.
- capital requirements and
sources;
- balance sheet;- break-even analysis;
- income statement;
- cash flow projection.
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Annex
Business aspects advise: adresses for financingadvise,legal advice, marketing advice
Figures Tables
Graphs
Other sectors advice: research institutes,interests groups, administration, other key
innovation areas.
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Planning is a Process, NotJust a Plan
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Successful implementation startswith a good plan
Is the plan simple?
Is the plan specific? specific budgets?
Is the plan realistic?
Is the plan complete?.
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Preparing a business plan
Define and fix objectives, and programs toachieve those objectives.
Create regular business review and course
correction. Define a new business.
Support a loan application.
Define agreements between partners.
Set a value on a business for sale or legalpurposes.
Evaluate a new product line, promotion, orexpansion.
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Keys to Better BusinessPlans
Use a business plan to set concrete goals,responsibilities, and deadlines to guide yourbusiness.
A good business plan assigns tasks to people ordepartments and sets milestones and deadlinesfor tracking implementation.
As part of the implementation of a business plan,it should provide a forum for regular review and
course corrections. Good business plans are practical.
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Individual GANTT Chart Table (example)Months
Activities
2/99 3/99 4/99 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 1/00
Seek legal advice
Choose land and buy
Plan plant layout
Finalise loan
Register
Order machines ++++
+
++++
+
++++
+
Prepare plant
Advertise ++++
+
++++
+
++++
+
++++
+
Recruit personnel
Install machines
Trial production
Open business
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Business Plan "Don'ts"
Don't use a business plan to show how much youknow about your business.
Nobody reads a long-winded business plan: notbankers, bosses, nor venture capitalists. Yearsago, people were favorably impressed by longplans. Today, nobody is interested in a businessplan more than 50 pages long.
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How Long Should aBusiness Plan Be?
Page count is not a good way to measure length.
A 20-page plan with dense text and no graphics is muchlonger than a 35-page plan broken up into readablebullet points, useful illustrations of locations or
products, and business charts to illustrate importantprojections.
A good business plan should leave a reader a goodgeneral idea of its main contents even after only a quickskimming, browsing the main points, in 15 minutes.
Format, headings, white space, and illustrations make abig difference. Summaries are very important. Mainpoints should show up in a business plan as quickly asthey do in a business presentation.
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The right length of the plan depends on thenature and purpose of the plan
Will it include descriptions of the company andmanagement team for outsiders to read;
Does it need an executive summary good enoughto stand alone;
Does it include detailed research, plans, drawings,and blueprints;
Is it worded to withstand legal scrutiny as part ofan investment proposal.
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BUSINESS PLAN
Standard Outline
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EXECUTIVE SUMMARY
Brief Description of the Project
Brief Profile of the Entrepreneur
Project's Contributions to the Economy
Write this last. It's just a page or two ofhighlights.
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Section 1MARKETING PLAN
Description of the Product
Comparison of the Product with Its Competitors'
Location
Market Area
Main Customers
Total Demand
Market Share
Selling Price
Sales Forecast Promotional Measures
Marketing Strategy
Marketing Budget
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Section 2 PRODUCTION PLAN
Production Process (fixed capital, life of fixedcapital)
Planned Capacity - Future Capacity
Terms and Conditions of Purchase of Equipment
Factory Location and Layout
Raw Materials Needed - Cost of Raw Materials -Raw Materials Availability
Labour
Cost of Labour
Labour Availability - Labour Productivity
Factory Overhead Expenses
Production Cost
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Section 3 ORGANIZATION &MANAGEMENT PLAN
Form of Business
Organisational Structure
Business Experience and Qualifications of the
Entrepreneur Pre-Operating Activities
Pre-Operating Expenses
Office Equipment
Administrative Expenses
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Section 4 FINANCIAL PLAN
Project Cost
Financing Plan and Loan Requirement
Security for Loan
Profit and Loss Statement Cash Flow Statement
Balance Sheet
Loan Repayment Schedule
Break-even Point (BEP)
Return on Investment (ROI)
Financial Analysis
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When a business plan is being worked out, thereare too many big questions, the answers of whichonly the entrepreneur can know, that are far tooimportant to be left to someone else who claimsthat he can spare the entrepreneur the trouble ofpreparing his own business plan - no one can do itbetter than you!
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Summary
A proper business plan serves as a map.
Use it to establish the points along the route,indicating why each is important and how it can
best be reached. The plan builds from mission and value to
justification, strategies, tactics, actions andexpected results.
Comprehensive business planning increases the
likelihood of the ventures success.
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Every business need an innovation engine togenerate the great ideas that will propel the
business forward into the future.