Ethiopian Institute of Architecture,

Building Construction and City

Development, EiABC
 Introduction Question
1. What expectations do you have about what you are going to get
out of this course?

02/09/23 2
 Questions about being an
Entrepreneur
Do you think you will be an intrapreneur,
entrepreneur, both or neither in your career?
Why?
 “ The only place success comes
before work is in a dictionary”ANON

“Shoot for the Moon, Because even if

you miss you’ll land among the stars. ”
R.Todd Eliason 4
 Who are entrepreneurs?

 Common myths about entrepreneurs:

– Entrepreneurs are born, not made.
– Entrepreneurs are gamblers.
– Money is the key to entrepreneurial success.
– You have to be young to be an entrepreneur.
– You must have a degree in business to be an
entrepreneur.

5
Entrepreneurship – It is a philosophy or process
through which an entrepreneur seeks innovation
and employment.
Entrepreneur- Person
Enterprise- Object
is the process of creating something
different 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. (Hisrich and Peters)
 Definition…Cont’d
Entrepreneurship is “starting a new business.” It is a process
through which individuals identify
 opportunities,
 allocate resources, and
 create value.

This creation of value is often through the identification of unmet

needs or through the identification of opportunities for change.

8
8
 According to J Baptist Say “an
entrepreneur is one who combines
the land of one, the labor of
another and capital of yet another,
and thus produces a product.
FACTORS OF PRODUCTION
– Land - Labor
– Capital AND -Entrepreneurship
 Entrepreneurs
– Risk-taking individuals who take actions to
pursue opportunities and situations others may
fail to recognize or may view as problems or
threats.
– Entrepreneurs are individuals who
recognize opportunities where
others see chaos or confusion.

10
 Who is an entrepreneur?
Person conducting own business (Webster)
Person who sets up business deals in order to
make profits (Collins Cobuild)
Organizer of an economic venture, one who
owns, organizes, manages, and assumes the
risks of the business (Chandrashekhar)

11
Entrepreneurs are people who have the ability
to:
• see and evaluate business
opportunities;
• gather resources; and
• initiate appropriate action to
ensure success

12
WHAT ENTREPRENEURS SEE

 OBJECTIVES
 FIRST STEPS
 OPPORTUNITIES

WHAT OTHERS SEE

 CHAOS OR
CONFUSION
 VICIOUS CIRCLES
 PROBLEMS 13
Do you have what it takes to become an
entrepreneur?
You have to believe in (and get others excited
about it) something that does not yet exist
You have to start somewhere: a technology, a pain,
a team, a market, …
You have to ask a LOT of questions:
– Who is my customer?
– What is my value proposition?
– Who do I need on our team?
– What exactly is the product/service?
 Cont…
– Will it work? Can I scale it? How?
– Do I have a sustainable advantage?
– Can I avoid making mistakes that will kill the
company before it becomes viable?
– What are those mistakes?
– What is my exit strategy?
 Question for Reflection

What would be the role of entrepreneurship

to Ethiopian economy?

16
16
 Bill Gates, founder of Microsoft company
Ermiyas Amelga- Highland Spring Mineral Water,
Access Real Estate, Zemen Bank, Lovely Biscuits,….
Internet/Facebook Entrepreneurs
Thomas Edson
Haile G/selassie
Sheh Alhamudihn
Dr. Eleni G/mariam
Abera Mola

Contribution of these peoples?

17
 Benefits of Entrepreneurship
To an Individual
Provides Self Employment for the entrepreneur
Entrepreneur can provide employment for near & dear
one as well
Entrepreneurship often provides an employment and
livelihood for next generations as well.
Freedom to use own ideas – Innovation and creativity
Unlimited income / higher retained income – Bill Gates
has risen to become richest in the world in a single life
time through entrepreneurship
Independence Satisfaction
 Cont… Individual

Create their own destiny

Make a difference
Reach their full potential, 24/7
Contribute to society and be recognized for their
efforts
Do what they enjoy and have fun at it!
 To the Nation
Helps to reduce unemployment in the country.
Results in fair and wider distribution of wealth
Stimulates the equitable redistribution of wealth, income,..
Encourages effective resources mobilization of capital , skills
and savings
Promotes export trade i.e. an important ingredient for
economic development.
Improves quality of life- discovery of new products and
services
Stimulates innovation & efficiency
20
20
 Cont…
Discover new sources of materials- entrepreneurs seek for
cheaper, alternative and more sources of materials
Promotes healthy competition
Empowers individuals- entrepreneurs have high income
potential as compared to employees
Promotes Self-help and Employment
Provides taxes to the economy- through real estate tax,
income tax, sales tax, other fees
Entrepreneurial Incentives
 Entrepreneurial Motivation
Pull Influence
– Desire for independence
– Desire to exploit an opportunity
– Financial incentive
– Market opportunity -Community service
Push Influence
– Redundancy (Being without a job, idleness)
– Unemployment -Job Dissatisfaction
– Disagreement with previous employer
– Challenge Retirement – Many retired, but
physically and mentally fit people
 What are the reasons for someone to become an
entrepreneur?

– Doing for themselves what they were already doing

for other employers.
– Seeking a pathway to opportunity.
– Nothing will use/value your talents and abilities more
than starting your own company
– 24/7

24
Success factors of entrepreneurs
A.The entrepreneurial team- do not start business by
themselves; they have teams, parents, close associates,
or extensive network of advisors.
B.Venture product and service- Incremental
expansion of products and services also tend to stay
within the bounds of positive cash flow
C.Marketing and timing- have a clear vision of both
existing and potential customers. Timing pertains when
product or services are to be introduced, how they are
priced, how they are distributed, and how they are
promoted.
D.Business Ideology: is defined as a system of beliefs
about how one conducts an enterprise.
 Entrepreneurial Skills

To be successful, an entrepreneur must not only

identify an opportunity but also understand it in
great depth. He or she must be able to spot a
gap in the market and recognize what new
products or services fill the gap.
General management skills and
People management skills
 General Management Skill
Skills required to organize the physical and financial
resources needed to run the venture.
Strategy Skills – An ability to consider the business
as a whole, to understand how it fits within its
market place, how it can organize itself to deliver
value to its customers, and the ways in which it
does this better than its competitors.
Planning Skills – An ability to consider what the
future might offer, how it will impact on the
business and what needs to be done to prepare for
it now.
Marketing Skills – An ability to see the past firm’s offerings and
their features, to be able to see how they satisfy the customer’s
needs and why the customer finds them attractive.
Financial Skills – An ability to manage money; to be able to keep
track of expenditure and to monitor cash-flow, but also an ability
to assess investments in terms of their potential and their risks.
Project Management Skills – An ability to organize projects, to set
specific objectives, to set schedules and to ensure that the
necessary resources are in the right place at the right time.
Time Management Skills – An ability to use time productively, to
be able to priorities important jobs and to get things done to
schedule.
 People Management Skill
Leadership Skills – An ability to inspire people to
work in a specific way, Leadership is about more
than merely directing people; it is also about
supporting them and helping them to achieve the
goals they have been set.
Motivation Skills – An ability to enthuse people and
get them to give their full commitment to the tasks
in hand. Being able to motivate demands and
understanding of what drives people and what they
expect from their jobs.
 Cont…
Delegation Skills – An ability to allocate tasks to
different people. It demands a full understanding of the
skills that people posses, how they use them and how
they might be developed to fulfill future needs.
Communication Skills – An ability to use spoken and
written language to express ideas and inform others.
Negotiation Skills – An ability to understand what is
wanted from situations, what is motivating others in that
situation and recognize the possibilities of maximizing
the outcomes for all parties.
 Who becomes an Entrepreneur

Any one with the following characteristics can be

an entrepreneur.
The Inventor
The Unfulfilled Manager
The Displaced Manager
The Young Professionals
The Excluded
 Who can be an Entrepreneur?

Who feels the need for achievement

Who can take moderate risks
Who possess skills in organizing
Who can capitalize on opportunities
Who has some financial strength – On his own
or borrowed
 Who can be an Entrepreneur?

Who has ability to work hard

Who has desire for responsibility
Who has a clear perception of probability of
success
Who gets stimulation by feedback
Anyone – He can be male or female
Who does not have previous experience
 Basic Steps for BCE
Establish the Company/Partners;
Market Research
Identify your Product or Service
Prepare a Business Plan;
Get Credit, if Necessary, with EiABC or other
source;
Run the Company
Close out the BCE Company, payback the loan,
calculate and present the outcomes.
Quote

“What I hear, I forget;

“What I see, I remember;
“What I Do, I learn.”
“True learning flourishes in Chaos”.
Marina Fanning
 Chapter-2- Ten Personal Entrepreneurial
Competencies (PECs)

PECs are categorized in to three clusters:

Achievement Cluster

Planning Cluster

Power Cluster
36
 Achievement Cluster

1. Opportunity Seeking

2. Risk Taking

3. Demand for Efficiency and Quality

4. Persistence

5. Commitment to Work Contract

37
 Planning Cluster

6. Information Seeking

7. Goal Setting

8. Systematic Planning and Monitoring

38
 Power Cluster

9. Persuasion & Networking

10. Independence & Self Confidence

39
- Does things before asked or
forced by events- proactive
- Seizes opportunities to start a new
business, obtain finance,
equipment, land, work space or
assistance etc.
- Takes action to extend the
business into new areas, products
or services (Continuously moves
into new frontiers)

40
 Exercises- Opportunity Seeking
. . .
. . .
. . .
Connect the nine dots without uplifting your pencil
“Creativity emerges from the elimination of all
unnecessary assumptions.”
41
 Exercises- cont...
Opportunity Identification

Problems Underutilized Resources Business Opportunities

Thefts
Hot Weather
Diseases
Boredom

42
 Exercises- cont...
Opportunity Identification

Problems Underutilized Resources Business Opportunities

Thefts Locking systems
Hot Weather Fans and air coolers
Diseases Medical Clinic
Boredom Leisure Club

43
- Deliberately calculates
risks and evaluates
alternatives

- Takes action to reduce

risks and control
outcomes

- Faces challenges and

moderate risks

44
 QUOTES

“Nothing ventured, nothing gained”

“Calculated risk is quite different from being rash. ”

 George S. Patton

“Fortune sides with him who dares ”

 Virgil
Flip Chart 2.6

45
- Finds ways to do things
better ,faster and cheaper

- Acts to do things that meet or

exceed standards of excellence

- Develops ways / procedures

that ensure the required quality
46
- Takes action in the face of a
significant obstacle

- Takes insistent actions or

switches between alternatives to
attain goal

- Takes personal responsibility and

demonstrate proactive stance

47
- Makes a personal sacrifice or
go to an extra mile to complete
a job (honors his/her word)

- Does ‘low level’ jobs to get a

job done

- Strives to keep customers

satisfied and places long term
goodwill over short term gain

48
 “ Success in business depends 10% from
inspiration and 90% from perspiration”.

“To do something and fail is experience,

real failure is not doing anything at all”.

“Failure is the first step on the road to success”.

- Seeks information from clients, suppliers, competitors
and other sources

- Does research on how to provide a product or service

- Seeks the advice of experts

50
 Information is power. Right information at the
right time makes the job easier. Knowing that
flight has got cancelled before you leave home
will save you time, money and spare frustration.
A successful entrepreneur invests in establishing
information channels.

“There are no foolish questions, only fools who

don’t ask questions.” Unknown
- Sets personally meaningful
and challenging
goals/objectives

- Articulates clear and specific

long range goals

- Sets SMART short term

objectives
52
“The wind never helps the boat that has no clear
destination.” Seneca

Start with the end in mind;

 Personal Vision and Life Goals

20 years from now (How do you see your self 20

years from now? What will you be doing? (List
as many things as you can, and be specific as
possible).
______________________________________
______________________________________
______________________________________
______________________________________
____________________________________
 Personal Vision and Life Goals

10 years from now (How do you see your self 10

years from now? What will you be doing? (List
as many things as you can, and be specific as
possible).
______________________________________
______________________________________
______________________________________
______________________________________
____________________________________
 Personal Vision and Life Goals

5 years from now (How do you see your self 5

years from now? What will you be doing? (List
as many things as you can, and be specific as
possible).
______________________________________
______________________________________
______________________________________
______________________________________
____________________________________
 Goal Planning for the next 5 years

5 year vision for myself and my company. Using

simple and straight forward words, indicate how
you see your business and personal situation
five years from now in terms of:
Your position, no. of employees reporting
directly to you, and in the co., new
products/services, new sources of customers,
office location, annual income, and other
business goals.
Goal Planning for the next 12 months

Using simple and straight forward words,

indicate how you see your business and
personal situation 12 months from now in terms
of:
Your position, no. of employees reporting
directly to you, and in the co., new
products/services, new sources of customers,
office location, annual income, co.’s annual
income, other business goals
- Plans by breaking large tasks into
small steps with deadline

- Evaluates performance, receive

feedbacks and change accordingly

- Keeps neat financial records and

utilizes them for business
decisions

59
 Quote
“If you don’t know where to go, any road will take
you there”
61
- Uses deliberate strategies to
influence or persuade others

- Uses key people to accomplish

objectives

- Acts to develop and maintain

business contacts

62
- Looks for freedom and autonomy
from control of others/ curtailing rules

- Sticks with own judgment

- Expresses confidence to accomplish

‘difficult tasks’

63
 Chapter Three: Business Idea Generation and
Selection

A. Business Idea Generation

- How do we get an idea to start a business

B. Business Idea Selection

- How do we select the best and viable business idea/s out of
the list of ideas

64
 Source of Business ideas

• Observing the Market

• Consumers
• Development in other Nations
• Government Organizations
• Existing Companies
• Distribution Channels
• Trade Fairs and Exhibitions
• Hobbies/Interests
• Mass Media

65
To Improve Your Capacity of Generating
New Ideas
Copy somebody else's successful idea
Combine two or more ideas to form a new one
Solve problems to people
Find what the competitors are bad
Develop hobby
Build on your skills
Turn wastes into useful things
Bring ideas from holidays
Brain storm
Talk and listen to people
Make lists and play around with
Look for gaps in the market
66
Find new ways to do things
 Left-Brained or Right-Brained?

Entrepreneurship requires both left-and right-

brained thinking.
– Right-brained thinking draws on divergent reasoning,
the ability to create a multitude of original, diverse
ideas.
– Left-brained thinking counts on convergent
reasoning, the ability to evaluate multiple ideas and
to choose the best solution to a problem.

67
 Exercise?
What could one do with sawdust?
HOW MANY TRIANGLES IN A TRIANGLE-?
 Questions to Spur the Imagination

Is there a new way to do it?

Can you borrow or adapt it?
Can you give it a new twist?
Do you merely need more of the same?
Less of the same?

69
 Questions to Spur the Imagination

Is there a substitute?
Can you rearrange the parts?
What if you do just the opposite?
Can you combine ideas?
Can you put it to other uses?

70
 Questions to Spur the Imagination

What else could you make from this?

Are there other markets for it?
Can you reverse it?
Can you rearrange it?
What idea seems impossible, but if executed would
revolutionize your business?

71
 Tips for Enhancing Organizational
Creativity
Include creativity as a core
company value
Expect creativity
Expect and tolerate failure
Encourage creativity

72
 Tips for Enhancing Organizational
Creativity

View problems as challenges

Provide creativity training
Provide support
Develop a procedure for
capturing ideas

73
 Tips for Enhancing Organizational
Creativity
Talk with customers
Look for uses for your company’s
products or services in other
markets
Reward creativity
Model creative behavior

74
 Tips for Enhancing Individual
Creativity
Allow yourself to be creative
Give your mind fresh input every day
Observe the products and services of other companies,
especially those in completely different markets
Recognize the creative power of mistakes

75
 Tips for Enhancing Individual
Creativity
Keep a journal handy to record your thoughts and ideas
Listen to other people
Listen to customers
Talk to a child
Keep a toy box in your office
Read books on stimulating creativity or take a class on
creativity
Take some time off

76
 Barriers to Creativity
Searching for the one “right” answer
Focusing on “being logical”
Blindly following the rules
Constantly being practical
Viewing play as frivolous

77
 Barriers to Creativity

Becoming overly specialized

Avoiding ambiguity
Fearing looking foolish
Fearing mistakes and failure
Believing that “I’m not creative”

78
B.Business idea selection
The Funnel model
a. Macro screening

b. Micro screening

c. SWOT Analysis

79
 a. Macro screening

- First selection/ filtering

- Use the following basic criteria :-
Is there sufficient demand?
Own capabilities ?
Own sufficient financial resource?
(at least 20 %)
Are there many similar project in the area?
80
 Micro screening parameters

Availability of appropriate market

Availability of qualified personnel
Availability of technology equipment
Availability of raw material
Competitors
Critical success factor

81
 c. SWOT Analysis

The last exercise of refining a business idea

The finding of the analysis gives concrete
ground for undertaking market studies

82
SWOT Analysis Framework
Strengths weaknesses

Opportunities Threats

8
3
 What Is a “Small” Business?
• Small Business Defined
– A business that is independent (not part of a larger
business) and that has relatively little influence in its
market.
 What is special about small businesses?

 Small businesses …
– Ones with 100 or fewer employees.
– Independently owned and operated.
– 50 percent of the private labor force works in small
businesses.
– Are established by:
• Starting a new business.
• Buying an existing business.
• Buying and running a franchise.
85
 What Is a Small Business?

Criteria for Defining Smallness in Business

1. Financing supplied by one person or small group
2. Localized business operations (except marketing)
3. Business’ size small relative to larger competitors
4. Fewer than 100 employees
 Advantages of Doing Small Business

• Independence
• Financial opportunities
• Job security
• Family employment
• Community service
• Innovation
• Challenge
• Contribution to big business
• Suppliers of specialized services and raw materials
• Sellers of larger firms’ products
87
 Reasons for Failure of Small Business

Management incompetence
Poor financial control
Lack of adequate capital
Over investment in fixed asset
Failure to plan current as well as future operations
Improper Attitude ( time, employees and style of work)
Inadequate marketing plan
Incorrect market identification
Poor distribution channel
Incorrect pricing
Lack of experience
88
Eight reasons why many small businesses fail.

89
 How to avoid the pitfalls

Know your business in depth

Have a Good Relation with Stake Holders
Prepare sound business plan
Managing financial resources
Learn to manage people effectively
Keep in tune with yourself
Take up short professional courses in management
(entrepreneurship)
Be sensitive to your customers
Hard work, drive and dedication
Market demand
Managerial competence 90
 New Business
The following checklist shows factors you should
consider helping plan your future business
operations.
Marketing: who are your customers?
– can you articulate your customers need,
– how do you know the product or service will satisfy
their needs;
– how will you reach your customers with your
advertising message;
– how much money have you budgeted for
advertising, sales promotion, and publicity;
– who will sell your product or service and how
will it be done; is your market determined by
geography;
– can you estimate your first years sales;
– are your customers price sensitive ;
– can you clearly identify your competitors; and
– how will you distinguish your product, service,
or store from your competition?
Inventory:
– What type of merchandise will sell;
– what type of selection will you offer and how will it be
determined;
– will your price be competitive;
– will you sell on credit; how many units must you sell
before you breakeven; and
– have you established an information sources to keep
you updated on customer trend?
Supplies:
– Who are your suppliers;
– what product or service do they offer;
– how long will it take for delivery; and
– will they give you credit?
Equipment:
– what type of equipment and furniture will you need;
– how will you finance the purchase of equipment and
furniture; and
– will you be able to buy your furniture and equipment
secondhand?
Employees:
– Will you hire employees?
– what source will you use;
– what will be your hiring criteria;
– will your employees already trained or experienced;
– is your way of doing things different from the way of
the industry so that you will have to train your
employees regardless of their background;
– who will do the training and how will it be done; and
are you prepared to pay for this training?
Locations: How important is the location to reach
customers;
– will the manner of transportation of your
merchandise to customers be important;
– is the building you propose to use zoned for activity
of your business;
– can you live with the terms and conditions of the
lease;
– how much can your business expand before it will
become necessary to relocate; and
– will you need to build out or install fixtures and at
what cost?
Miscellaneous:
– Will you need stationery,
– business cards, letterheads, envelops;
– will you have telephone service and will you
advertise in the yellow pages;
– what type of insurance polices will you obtain?
 Expenditures you need to be aware of and plan
for when starting from scratch.
– Your salary _interest (if you borrow money)
– Salaries of employees
– Maintenance - Rent - license and permits
– Sales and value added tax
– Advertising and sales promotion - Signs
– Merchandise - Cash register - Telephone
– Supplies (including purchasing checks, paper, adding
machine taps, accounting records)
 Point for Reflection

The Ethiopian Government is promoting

Micro and Small Enterprises with an
intended objective.
Discuss

99
 Chapter Four- Business Plan

Essentially a road map for reaching a set goal in

business
A map for success
A living document
 Basic items that should be included in a
business plan:
– Executive summary
– Industry analysis
– Company description
– Product and services description
– Market description
– Marketing strategy
– Operations description
– Staffing description
– Financial projection
– Capital needs
101
– Milestones
 1. Introductory page

Name and address of the venture

Names and addresses of the principals
Nature of business
Statement of financing needed
Statement of confidentiality of the report
2. Executive Summary
3. Industry Analysis
Future outlook and trends
Analysis of competitors
Market segmentation
Industry forecasts
 4. Description of Venture

Product(s)/Service(s)
Size of business
Office equipment and personnel
Background of entrepreneurs
 5. Production Plan or Operations
Plan

Manufacturing process (amount subcontracted)

Physical plant
Machinery and equipment
Names of suppliers of raw materials
 6. Marketing Plan

Pricing
Distribution
Promotion
Product forecasts
Controls
 7. Organizational Plan

Form of ownership
Identification of partners or principalshareholders
Authority of principals
Management– team background
Roles and responsibilities of members of
organization
 8. Assessment of Risk

Evaluation of weaknesses of business

New technologies
Contingencies plans
 9. Financial Plan

Pro forma income plan

Cash flow projections
Pro forma balance sheet
Break– even analysis
Sources and applications of funds
 10. Appendices (contains backup
material)
Resumes of principals
Letters
Market research data and survey results
Leases or contracts
Price lists from suppliers
Facility layout
Draft marketing brochure with or without pricing
Structure of e– marketing thrusts, if any
 Chapter Five- PRODUCT AND
SERVICE CONCEPT
Product- anything that can be offered to a
market for the purpose of attention, acquisition,
use or consumption.
a set of tangible and intangible attributes.
Includes goods, services, idea, information, idea,
place, person, etc
 The Product Planning and Development
Proces s
Idea Stage – Idea – Evaluate
Concept Stage – Lab Development – Evaluate
Product Development Stage – Pilot Production –
Evaluation
Test Marketing Stage – Semi Commercial Production
Evaluation
Commercial Stage –
– (i) Introduction
– (ii) Growth
– (iii) Maturity
– (iv) Decline
 Protecting Your Ideas/Products

Patent – a grant from the Patent and Trademark

Office to the inventor of a product, giving the
exclusive right to make, use, or sell the invention
for 20 years from the date of filing the patent
application.

113
 Number of Patent Applications and Patents Issued

4 00 ,000

3 50 ,000
Number of Applications or Patents

3 00 ,000

2 50 ,000
Patent Applications
2 00 ,000 Patents Issued

15 0 , 0 0 0

10 0 , 0 0 0

5 0,0 00

-
19 7 5 19 8 0 19 8 5 19 9 0 19 9 5 19 9 7 19 9 8 19 9 9 2000 2001 2002 2003 2004
 The Steps to a Patent
Prosecute the patent application

Submit the patent application

Study search results

Search existing patents

Document the device

Establish the invention’s novelty

115
 Protecting Your Ideas

Trademark – any distinctive word, symbol,

design, name, logo, slogan, or trade dress a
company uses to identify the origin of a product
or to distinguish it from other goods on the
market.
Servicemark – the same as a trademark except
that it identifies the source of a service rather
than a product.
116
 Trademark Applications and Trademarks Issued

3 50 ,0 0 0

3 0 0 ,0 0 0

2 50 ,0 0 0

2 0 0 ,0 0 0
Trad emark Ap p licatio ns
Trad emarks and Renewals Issued
15 0 , 0 0 0

10 0 , 0 0 0

50 ,0 0 0

-
19 8 0 19 8 5 19 9 0 19 9 5 19 9 7 19 9 8 19 9 9 2000 2001 2002 2003 2004
 Protecting Your Ideas

Copyright – an exclusive right that protects the

creators of original works of authorship such as
literary, dramatic, musical, and artistic works.
Copyrighted material is denoted by the symbol
©.

118
 Chapter Six- Entrepreneurial
Marketing: Strategic Challenges
• exceed customer expectations
• build trust, keep promises

Customers
Internal Com-
petitors
• manage processes
• seize opportunities
• show leadership
• change the rules
• balance attack,
defence and evasion
Entrepreneurial
Marketing Strategy
 Defining the Offer:
SWOT Analysis
favourable unfavourable
Strengths Weak-
internal nesses
Opportu-
nities  Threats
external

Entrepreneurial
Marketing Strategy
 Defining the Offer:
PESTLE Analysis
Political Environment(s)
Economic
Social
Technological
Legal
Ecological
Influence on
Entrepreneurial Business Idea ?
Marketing Strategy
 Defining the Offer:
The Basis For Differentiation
Product Price Promotion Place

Where is their basis

for differentiation ?

Entrepreneurial
Marketing Strategy
 Defining the Offer:
The Basis For Differentiation

Study published by Babson College, Boston, Mass., USA

Entrepreneurial
Marketing Strategy
 “What’s In It For Me?”
Customer Benefit Definition
product feature generic benefit meaning
to customer
extended convenience freedom
opening hours
customer savings feeling
loyalty card market savvy
eco-certified good leading a
products conscience meaningful life
Entrepreneurial
Marketing Strategy
 USP — Formulate
a Unique Selling Proposition
"When it absolutely, positively
has to be there overnight" – FedEx
"Connecting people" – Nokia
"Because I'm worth it" - L'Oreal
(“Parce que je le vaux bien”)

“United Colors of Benetton”

Entrepreneurial
Marketing Strategy
 Timing the Entry Into the Market
— Product/Market Life Cycle

market
volume Product Innovator

Market Innovator

Introduction Growth Maturity Decline time

Entrepreneurial Marketing
Strategy
 Timing the Entry Into the Market
— Product/Market Life Cycle
Introduction Growth Maturity Decline

Q:
New former non-buyers competitors’ customers
customers How can Marketing Strategy adapt
Main raising tomaking
different Lifedifferentia-
Cycle Phasesretreat
? from
marketing awareness, product tion from market
problem getting available competitors
known
Main Promotion Place Product, Price
instruments Promotion
Spin on USP Newness Trendiness Distinctness Reliability

Entrepreneurial
Marketing Strategy
 Timing the Entry Into the Market
— First Move Considerations
First Mover Advantages First Mover Disadvantages

Primacy effect: Making an early and Recency effect: Followers have

lasting effect on customers benefit of newness

Investments into the market (e.g.: Competitors’ free rider effect;

distribution network, consumer
awareness) will pay off early.
First mover can start to build
experience early, increase the lead
and solidify the strategic position
investments may turn out to be
exit barriers if/when market
declines
Competitors may catch up or
outperform first mover if imitation
barriers are low

Entrepreneurial
Marketing Strategy
 FOUR Ps CONCEPT
PRODUCT PRICE
Quality Basis of price
Design List price
Features Discount
Name Payment period
Size etc. Credit Terms
Target
PROMOTION Customers PLACEMENT
Advertising Channels
Sales promotion Locations
Personal selling Inventory
Public relations Transportation
Logistics
129
 ENTREPRENEURSHIP
RESEARCH
What are my business objectives?
How would I describe my customers?
What are my customer’s views of my business?
How would I describe my competitors?
What is my product strategy?
What is my pricing strategy?
What is my promotion strategy?
How do I justify the location of my business in terms of
its ability to serve my customers?

130
 COMPARE DIFFERENT
OPPORTUNITIES
Is there a market? Will people buy?
How much money would it take? Will I be able to borrow that
much?
How many hours a week are required? Am I willing to commit
that much time?
What are the risks? What is the rate of business failure?
Do I have the right background? Do others who own this kind of
business have more experience?
How much money could I make?

Slide 131
 Legal form of your business

Sole Proprietorship
Partnership
Corporation
Limited Liability Corporation (LLC)
Limited Partnership
THANK YOU FOR
YOUR ATTENTION
133