Unit 1: Setting up an enterprise

Learning objectives:
At the end of this unit, you will be able to:

 Identify the different sources of business idea

 Analyse how entrepreneurs select the best idea
 Outline the steps to set up an enterprise

Business Ideas

 A business idea is what an entrepreneur wants to do.

 A good business idea is a key to success.
 A bad business idea will result in failure of the business.

Examples of business ideas

 A cake shop
 A boutique
 An ice cream parlour

Sources of business ideas

Families , friends and relatives

Internet and magazines

Own surroundings and locality

Hobbies and activities

Qualifications and experiences

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Unit 1: Setting up an enterprise
Key characteristics of business ideas

Create new ideas and products to suit different tastes and

preferences of consumers
Innovative

Goods and services should be unique to attract customers

Uniqueness

Should attract a large number of customers

Attractive

Satisfy the cutomers' tastes in order for the business to

Growth grow
potential

Steps to set up an enterprise

 There are different steps an entrepreneur needs to follow when setting up a business.
 After following all the steps, the entrepreneur will have to design a business plan.

What is a business plan?

 It refers to a detailed document that provides information on the activities that the
business is undertaking.

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Unit 1: Setting up an enterprise
Steps to set up an enterprise
 Business idea
 Type of enterprise
 Business name
 Business location
 Registration of enterprise
 Sources of funds
 Organizing resources
 Launching the product
 Business plan
Steps Explanation Example of my enterprise
Business idea The entrepreneur selects the best Shop selling flowers
business idea after generating several
business ideas
Type of enterprise The entrepreneur can decide to start Sole trading business
the enterprise alone or with a group of
partners
Business name Business name should be attractive Lavender shop
and should represents the activity of
the business
Business location The business should have a physical Mont choisi mall
address. Factors like nearness to
customers, infrastructure, safety and
security affect the decision where to
locate
Registration of Legal formalities should be completed Business registration number
enterprise to register the business
Sources of funds Entrepreneurs can use own savings, Own savings and borrowings
borrowings from relatives and friends from relatives and friends
and loan from banks
Organizing Since resources are scare, Land, labour, capital and
resources entrepreneurs need to organize and enterprise
manage their resources carefully
Launching the Entrepreneurs must choose the right Product launch at trade fair
product place, right time and right customers to
launch the product
Business plan It refers to a detailed document that Business plan of the shop
provides information on the activities
that the business is undertaking.

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Unit 1: Setting up an enterprise
Registering an enterprise
 Business registration is done at the Registrar of Companies which is found at
“Companies Division, One Cathedral Square, Jules Koening St, Port-Louis”
 It can be done in one day at the office or online

Some information to be provided are:

 Name of the company -

 Company file number
 Business name
 Date to start the business
 Nature of the business & location
 Number of employees
 Address of the business
 Telephone number, fax number and email address

Business plan of Tie-the-Knot Bridal Collection

Name of enterprise: Tie-the-Knot Bridal Collection

Name of owner(s): Sarah & Jenifer
Starting date: 13th January 2016
Location: Bagatelle shopping Mall
Type of enterprise: Partnership
Start-up capital: Rs 300,000
Supplier(s): Cloth & Accessories Ltd
Customer(s): Brides and Bridesmaid

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Unit 1: Setting up an enterprise