Process of launching an enterprise

ENTREPRENEURSHIP DEVELOPMENT FOR RURAL FAMILIES 4(1+3)
Lesson 12 : The Process of Launching an Enterprise

Process of launching an enterprise

  1. Scanning of environment: refers to the efforts an entrepreneur uses for examining the external and internal environment before making a decision to start an enterprise.

  2. Locating business opportunities: Opportunities for potential entrepreneurs are unlimited. Entrepreneurial opportunities will continue to exist for individuals willing to take the risk.
    The two major characteristics of a business opportunity are
    • good and wide market scope i.e., gap between present or likely demand and supply.
    • an attractive, acceptable and reliable returns on investment.

  3. Converting opportunity into reality: The entrepreneur should plan systematically to convert the opportunities into reality in the following manner.
    • Through creativity and innovative ideas, products, services.
    • By acquiring technical and required skills
    • By collecting necessary information
    • By evaluating business opportunities through SWOT analysi

  4. Market Research: It involves gathering information about a particular market followed by an analysis of that information to assess the buying behavior, price and preferences and to identify the competitors.

  5. Developing a business plan: The entrepreneur has to prepare expected needs and projected results of the new business. It is a road map for a successful enterprise.

  6. Techno-economic feasibility: The success of an enterprise depends upon the entrepreneur doing the right thing at the right time. Starting a new venture is a very challenging and rewarding task. It requires an analysis of the project in depth.

  7. Preparation of feasibility report: The main purpose of the report is to provide information that is required for the project appraisal. This report would enable the financing agencies to evaluate though project before extending financial assistance. It contain background information about industry and enterprise, product characteristics, market position, trends etc.

  8. Accumulating resources: An entrepreneur operates in a competitive environment. In order to complete effectively he must allocate resources efficiently. Three kinds of resources are available to the entrepreneur. They are human, material and financial.

  9. Financial preparation: It focuses on
    • preparation of financial statements i.e., balance sheet, income statements, cash flow statements.
    • preparation of operating budgets

  10. Generating funds: Entrepreneur can obtain sources of funds from the following.
    • Personal sources
    • By issue of shares
    • By raising loans from commercial banks and financial companies.
    • IDBI, IFCI and ICICI

  11. Legal issues: Entrepreneurs should have some knowledge about certain legal concepts that have implications for the business venture mostly related to
    • inception of venture
    • ongoing venture
    • growth and continuity of venture

  12. Organizing production: Once the entrepreneur arranges the funds, he has to organize the production. Organizing production refers to making arrangements for purchase of machinery, appointment of workers, layout of plant, process, planning etc.

  13. Marketing of products: Marketing includes 4 P’S i.e., product, price, promotion and place. Marketing is a comprehensive term and includes all set of activities necessary to direct and facilitate the flow of goods and services for products to consume in the process of distribution.

  14. Managing entrepreneur: It is the most crucial task for the future success of business. It is a great challenge to balance the activities of the organization and manage the growth. It requires both the tactical skill and abilities on the part of entrepreneur.
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Last modified: Saturday, 7 January 2012, 7:08 AM