GST 302: Business

Creation and Growth:

Week 3

Bilkisu Katagum
Bkatagum@noun.edu.ng

National Open
University of Nigeria National Open University Of Nigeria
Introduction
This week we will be looking into the Concepts of Business and
Theories of Growth:
• Business Planning Process
• Legal Issues at Start-Up
• Feasibility Analysis of New Ventures
• Concepts, Challenges and Reasons for Growth
• Strategies for Growth, Mergers and Acquisitions
Intended Learning Outcomes
The learning outcomes for this week are
to:
• Understand the Business Planning
Process
• Learn Legal Issues at Start-Up
• Understand feasibility analysis of New
Ventures
• Concepts, Challenges and Reasons for
Growth
• Strategies for Growth, Mergers and
Acquisitions
Business Planning Process
• A business plan is a written
document that describes in detail
how a business defines its
objectives and how it is to go about
achieving its goals. (Hayes, 2021)
• According to Kuratko and Hodgetts
(1998), the business plan describes
to investors and financial sources all
of the events that are likely to affect
the proposed venture.
Legal Issues at Start-Up
Legal requirements to review and
understand before starting your
small business:
• Registered Business Name
• Federal Taxes
• State and Local Taxes
• Business Permits and Licenses
• Business Laws and Regulations.
Feasibility Analysis of New Ventures
• Feasibility analysis is a
comprehensive research study
required by the entrepreneur or
his agent to determine the
practicability, profitability and
viability of the business idea.
 Class Activity 1
• What are viable business ideas?
• Give examples of different
business ideas.
Concepts and Reasons of Growth
Business growth means expanding Reasons for Business Growth:
firm's products and services or • Profit motive
expanding its target markets, or
some combination of each. • Cost motive
Types of Business Growth: • Market Power motive
• Internal Growth (Within Firm) • Risk motive
• External Growth (Mergers and • Managerial Motive
Acquisition, External Finance)
Challenges of Growth
• Keeping up with the market
• Planning ahead
• Cash flow and financial
management
• Problem solving
• The right systems
• Skills and attitudes
• Welcoming change
Strategies for Business Growth
• Franchising
• Mergers and Acquisition
• Venture Capitalism
 Class Activity 2
• What types of essential business
skills are critical in growing a
business?
In the next class
we will discuss the
Sources Funds.