Week 2 ENT 202 24C PDF: Baze University Entrepreneurship 202

BAZE UNIVERSITY ENTREPRENEURSHIP 202 TOPIC: 1. Ideation and Creative Problem Solving for Nigerian Markets 2. Starting and Operating a new business October 4, 2024 TODAY’S OUTLINE ✓Innovation ✓Ideation ✓Before you start that business...

BAZE UNIVERSITY ENTREPRENEURSHIP 202 TOPIC: 1. Ideation and Creative Problem Solving for Nigerian Markets 2. Starting and Operating a new business October 4, 2024 TODAY’S OUTLINE ✓Innovation ✓Ideation ✓Before you start that business ✓Initial Start up activities ✓Management Task ✓Types of Plan ✓Pricing ✓Marketing Mix ✓Common mistakes of startups ✓Group Formation ✓Introduction to the business plan format  QUICK REMINDERS ✓Please ensure that you submit all your coursework by the specified deadlines. All class assignments will be assessed and will contribute to your Course Assessment (CA). ✓Some portions of the coursework will be collaborative efforts, but each student is expected to submit their work individually. This individual submission is essential, as grades cannot be assigned when individual students fail to submit group assignments. ✓When submitting your work on Google Classroom, please make sure it is placed under the correct category or heading. Submissions in the wrong classwork section or segment cannot be graded. ✓If you have not yet joined the Baze University Entrepreneurship Club, we strongly encourage you to do so now. It offers numerous benefits and opportunities.  TOPIC OBJECTIVES 1 How and why to identify business ideas, and start up activities 2 Develop competence on how to cope with the challenges of the first few months for a START-UP 3 How to identify Business Management Task and Functions RECAP ✓ The Nigerian Business Landscape o Nigeria's current economic and business environment. o Key sectors such as agriculture, technology, and energy. o Nigeria's position as one of Africa's largest economies. ✓ Challenges and Opportunities o The unique challenges businesses face in Nigeria, including infrastructural issues, regulatory hurdles, and market volatility. o The challenges also present opportunities for innovative solutions. ✓ Why Innovation Matters o why innovation is crucial for businesses in Nigeria. o how innovative ideas can address challenges and create sustainable growth. o Examples of innovative Nigerian businesses (Paystack and Flutterwave).  ✓ Techniques for Idea Generation RECAP o Various techniques for generating innovative business ideas, such as brainstorming sessions, SWOT analysis, and idea competitions. o The importance of encouraging creativity within teams. o Local Context Matters o the need to consider Nigeria's unique cultural, economic, and social context when generating business ideas. o Businesses that successfully adapted their solutions to Nigerian needs. ✓ Entrepreneurial Mindset o The attributes of an entrepreneurial mindset, including resilience, adaptability, and the willingness to take calculated risks. o You are Encouraged to cultivate these qualities. o Support Ecosystem o the support ecosystem available to entrepreneurs and innovators in Nigeria. o Government initiatives, incubators, accelerators, and funding opportunities. RECAP ✓ Engaging with the Community o the importance of community engagement and market research in the idea development process. o SMEs are encouraged to interact with potential customers and stakeholders. ✓ Create sustainable Solutions o The significance of developing sustainable business ideas that address long-term challenges. o Environmental and social responsibility as integral components of innovation. ✓ Teamwork and Collaboration o the value of teamwork and collaboration in the ideation process. o examples of successful Nigerian startups founded by collaborative teams. Ideation IDEATION: Unlocking Creative Potential Definition: ❑ Ideation is the process of generating, developing, and communicating new ideas. Why is it Important? ❑ Fuels innovation and problem-solving. ❑ Encourages thinking outside the box. ❑ Critical for business growth, product development, and process improvement. Key Phases: 1.Inspiration: Identifying problems or opportunities. 2.Ideation: Brainstorming and generating ideas. 3.Implementation: Turning ideas into actionable steps. o Substitute: Replace one part of the product/process with another. o Combine: Merge two or more elements to create Effective Techniques: something new. ❑ Brainstorming o Adapt: Modify or change an existing solution to fit a new context. ❑ Mind Mapping o Modify: Change the scale, appearance, or ❑ SCAMPER Method (Substitute, Combine, Adapt, Modify, Put to another use, functionality. Eliminate, Reverse) o Put to another use: Find new ways to use existing ideas or products. o Eliminate: Remove unnecessary parts or reduce complexity. Remember: "No idea is too small or too o Reverse/Rearrange: Change the order or sequence to create new outcomes. crazy during the ideation phase."  Starting a successful startup requires more than a brilliant idea; it demands a strategic approach that involves careful planning, a keen understanding of industry needs, and the ability to anticipate future trends. Identify missing infrastructure in industries Recognize systemic vicious circles Anticipate future problems Build at the intersection points of major industries Explore the sweet spot between major trends Ideas are the currency of life Think globally, act locally Astute entrepreneurs see this challenge not as an obstacle but as an opportunity. Feasibility analysis, market ✓ Feasibility Analysis o feasibility analysis and its role in assessing the viability of a business idea. sizing, and target o the key components of feasibility analysis, including financial, operational, and legal considerations. ✓ Market Sizing customer segmentation. o Market sizing is and why it's crucial for business planning. o various methods for estimating market size, such as top-down and bottom- up approaches. ✓ Target Customer Segmentation o target customer segmentation and its significance in marketing and product development. o the concept of creating customer personas. ✓ Feasibility Analysis: Financial Aspect o the financial feasibility analysis, including cost projections, revenue forecasts, and break-even analysis. o examples related to a Nigerian business context. ✓ Market Sizing: Nigerian Market Insights o insights and statistics about the Nigerian market size and growth trends. o sectors or industries with potential for growth. ✓ Target Customer Segmentation: Understanding Nigerian Consumers o the diverse demographics and consumer behaviours in Nigeria. o the need to tailor products or services to specific customer segments.  ✓ Feasibility Analysis: Operational Aspect Feasibility analysis, o the operational feasibility analysis, covering aspects like logistics, supply chain, and resource availability. market sizing, and target o operational challenges in Nigeria. ✓ Market Sizing: Competition Analysis customer segmentation. o the importance of analysing competition in the Nigerian market. o successful businesses and their market positioning. ✓ Target Customer Segmentation: Creating Personas o Creating customer personas for the Nigerian market. o Examples of customer personas tailored to Nigeria. ✓ Feasibility Analysis: Legal and Regulatory Considerations o The legal and regulatory aspects of feasibility analysis. o The importance of compliance and navigating regulatory hurdles in Nigeria. ✓ Market Sizing: Local vs. Global Markets o Compare and contrast the Nigerian market with global markets. o the advantages and challenges of operating in the Nigerian market. Feasibility analysis, ✓ Target Customer Segmentation: Behavioural market sizing, and Insights o behavioural insights of Nigerian consumers, including purchasing habits and preferences. target customer o how understanding behaviour can inform marketing strategies. ✓ Feasibility Analysis: Risk Assessment segmentation. o the role of risk assessment in feasibility analysis. o strategies for risk mitigation in a Nigerian business context. ✓ Market Sizing: Niche Markets o the potential of niche markets within Nigeria. o businesses that have successfully targeted niche segments. ✓ Target Customer Segmentation: Localization Strategies o how businesses can adapt their products, marketing, and customer support to resonate with local customers OVERVIEW ▪ While our startup may be small in scale, the effort required to launch and sustain it is significant. From the essential step of crafting a solid business plan to navigating the legal obligations, such as filing taxes, entrepreneurship demands meticulous attention to detail and unwavering perseverance. ▪ Owning a business isn’t for everyone; it requires strong determination, adaptability, and effective crisis management skills. The importance of thoroughly understanding the proper procedures for starting a business cannot be overstated. ▪ Entrepreneurship involves handling numerous aspects, including legal compliance, securing financing, sales and marketing strategies, protecting intellectual property, managing liability, overseeing human resources, and addressing various other critical factors. STARTING A How to Identify Business Ideas: ✓ Identify Your Passion and Interests: One major hack to unravelling your business SMALL ideas is to first start by conducting an examination as to what your passions, interests, and hobbies might be. Examine cogent ways in which your personal interests can BUSINESS transcend into a business idea. Being passionate about your business increases the likelihood of encouraging you to remain committed and motivated. ✓ Solve a Problem: Scan out potential or existing problems or challenges in your own life or in the broader community. Successful businesses often address real pain points or unmet needs. Decipher tenable ways as to how you can provide solutions to these problems. ✓ Market Research: Often seen as a major business activity, market research, if thoroughly and accurately conducted, can prove to be an essential business feature in order to identify opportunities. Study your target market, analyse trends, and assess competition. Identify gaps in the market that your business could fill. ✓ Networking: Talk to people in your industry or those who have experience in entrepreneurship. Networking can provide valuable insights and potential business ideas. Attend industry events, join relevant online communities, and seek mentorship. ✓ Brainstorming: Organize brainstorming sessions with friends, family, or colleagues. Encourage creative thinking and generate a list of potential business concepts. Don't dismiss any idea at this stage; even seemingly unconventional ideas can lead to innovative businesses.  Why Start-Up Activities Are Important: STARTING A ✓ Economic Opportunities: Entrepreneurship contributes to economic growth through means of job creations, income generation, and fostering of innovation. Starting a SMALL business has the potential to open doors to financial independence and wealth creation. BUSINESS ✓ Solving Problems: Most successful businesses start by addressing specific societal problems or needs. Starting a business automatically connotes that you have the opportunity to make a positive impact and improve people's lives. ✓ Independence: Entrepreneurship offers independence and control over your career. This means that you’re at liberty to proceed towards setting your own goals, make decisions, and shape your business according to your vision. ✓ Innovation: Entrepreneurs often bring innovative solutions to the market. By starting a business, you can introduce new products, services, or processes that can disrupt industries and drive progress. ✓ Personal Growth: Starting and running a business is a significant personal development journey. It challenges you to acquire new skills, overcome obstacles, and build resilience. It can be a path to self-discovery and growth. ✓ Financial Rewards: While entrepreneurship typically involves risks, it also offers the potential for financial rewards. A successful business can provide a stable income and the possibility of substantial profits.  ✓ Following the conception of a business idea and conducting thorough market research to assess the STARTING A viability of the intended service or product, the journey truly begins with the feasibility study. SMALL BUSINESS ✓ Embarking on a business venture is inherently fraught with risks. Prior to the official launch of a new enterprise, it's imperative to actively seek methods to mitigate the potential for failure. ✓ One pivotal strategy involves conducting a preliminary market test for the product or service. This entails reaching out to potential customers before the official commencement, inquiring if they would be interested in purchasing what you plan to offer (utilizing a prototype if applicable). The feedback gathered should then be meticulously evaluated and taken into account as a valuable source of insight. BEFORE YOU START 01 02 03 04 Evaluate Yourself Conduct market Research Ask critical Find a business idea Evaluate Available Options questions such as: Through the desire, Do the necessary What are the Innovation, preliminary alternative available? discipline and Creativity and capacity to run the research on the is this the best Identification of proposed option, can the idea proposed business. Problem the business be improved upon business will solve. KEY STEPS TO FOLLOW IN STARTING A SMALL BUSINESS MAKE A PLAN DO YOUR RESEARCH 1. 2. Write a Detailed & Realistic Business Conduct a Feasibility on the Business. Plan PLAN YOUR FINANCES CHOOSE YOUR BUSINESS STRUCTURE 3. Sourcing for adequate funding for the 4. Choose the right business structure business. (e.g. Partnership) PICK AND REGISTER YOUR BUSINESS NAME GET LICENSES AND PERMITS 5. Adopt a business name and register 6. Obtain all necessary permits (e.g Nafdac, same SON) CHOOSE YOUR ACCOUNT SYSTEM SET UP YOUR BUSINESS LOCATION 7. Choosing the record keeping system ideal 8. Pick the right location using factors such for your business as: proximity to customer, cost etc. GET YOUR TEAM READY PROMOTE YOUR SMALL BUSINESS 9. Put together the right team of people 10. Use all means available to create awareness; to run the business. Attracting clients to the business INITIAL START UP ACTIVITIES o Draw up a solid business plan o Establish strong convictions about o Choose a catchy business name the business o Register a website o Talk to business owners and peers that you know and trust o Make a list of suppliers and distributions partners o Consider a co-founder o Make something you can show o Join an online business people community o Find your first customers o Define your customer profile o Look for small business grants and/ o Research the market or consider raising investment o Assess the competition OPERATING A SMALL BUSINESS Once you have gotten all the groundwork of starting a business, its time for the real work to start. ✓ Select Legal Name and Structure. ✓ Hire employees. ✓ Arrange for office, warehouse or work space. ✓ Pay for necessarily Business Tax / Registration Fees (understand what is required of your business- for example are there tax rebates for your business sector?) ✓ Keep detail, useful records.  CLASS WORK TWO Assignment Question: It is important for a firm to confirm a proposed business to be sustainable and able to generate profit. This includes acquiring information that can prove that the idea can ADDITIONAL GUIDELINES work and more importantly that the market exists for such a product. List Five ❑ Avoid plagiarism methods that can be used to validate a business idea chosen by a Nigerian ❑ Let your submission be entrepreneur. original to you. ❑ Do not submit as a Submission Guidelines: comment to the ▪ Submit your response in the designated Google Classroom assignment (titled Class question, but rather as Work Two). an individual ▪ Ensure your submission is original. Submissions copied from online sources will not submission. be accepted or graded. ❑ Avoid AI Generated ▪ AI-generated responses will not be graded. Responses ▪ Submissions after the due date will not be graded. ❑ All submissions must ▪ Please ensure all submissions are on a Word document. ▪ This class work is due by 6pm today Friday October 4, 2024. be in word document  MANAGEMENT OF STARTUPS o The act of Managing is one of the most important activities in any given company; notwithstanding their type, size, market or industry. o As an entrepreneur, it is necessary to practice and develop capacity in management. o Sometimes entrepreneurs in addition to their entrepreneurial duties will work entirely different task called management tasks o This means that you also need to have some types of managerial skills required for a successful implementation of management tasks. o There are plenty tasks that managers will need to accomplish in their daily work routine which purpose is to bring effectiveness and efficiency in their company.  MANAGEMENT TASKS oCoaching oDelegating oPlanning oPricing oChange Agent oCounselling As a startup, you must identify the Management oForecasting the Future oMarketing Task that matters most oMotivating Employees oOperating for your Company oOrganizing oResearching oStaffing oRepresenting oControlling oNegotiating TYPES OF PLANS PRODUCT PRICE COMPUTATION o Product pricing is a highly rated element to be considered in determining the success of your business. o It is necessary to charge the right price for the product and services rendered. o Attaining the right price requires some computations. o For a profit generating business, the end goal is to ensure the price is higher than the cost of production and marketing of the product/ service. TPYES OF PRODUCT PRICE COMPUTATION Option 1 Option 2 Option 3 EXPLANATION OF PRODUCT PRICE COMPUTATION o Cost Plus Pricing is one of the simple ways to compute price. It simply adds a margin to the cost of making and promoting the item, it is also referred to as Cost Based Pricing. o Market Oriented Pricing is when you compare similar products in the market, creating a price based on what your competition is doing, it is also called Competition Based Pricing. o Dynamic Pricing is when you set flexible prices for product and services based on current market demands. It is also called Demand Pricing or Time Based Pricing. THE MARKETING MIX – The 4Ps THE MARKETING MIX – The 5Vs VALIDITY VIABILITY a VISIBILITY VIRALITY VITALITY Strategy to Having the Market The total Plan to grow vitality for effectively Validation: the component; through the success. promote the existence of a total cost creation Net Passion, business. current and match with Promoters of Great Team, Digital potential expected the brand. Synergy and marketing market for the returns excellent etc. product Marketing ADDITIONAL FACTORS ON START-UP SUCCESS FACTORS THAT AFFECT START-UP SUCCESS THE IDEA AND THE TEAM THE BUSINESS MODEL FUNDING TIMING The business How the business has proposal as well as been structured in the Having the right (amount Right Business at those to run it will environment and and cost) funding for the the right Time determine its success market it plays in business ADDITIONAL FACTORS ON START-UP SUCCESS OBSTACLES TO STARTUP SUCCESS ▪ Absence of objective evaluation ▪ Vaguely conducted insight into the market ▪ Inadequate understanding of technical requirements ▪ Poor financial understanding/monetary comprehension ▪ Lack of venture uniqueness ▪ Poor Pricing Mechanism ▪ Ignorance of legal/political/economic issues Common Mistakes Start-up Ventures Make 1 Avoiding Data Not gathering necessary information on the business. Most Financier will not fund a business without data. Refusing to delegate Ability to multi task should not hinder the need to delegate. Delegating helps create capacity in others. Not Managing Your Time Presenting all that needs to be done in perspective so as to prioritize giving essential task priority. COMMON MISTAKES START-UPS VENTURES MAKE 2 Not taking care of yourself and / or employees Self care is essential to allow for efficiency. The workload of a startup often makes entrepreneurs overwork to the detriment of their health. Take out time to rest and unwind Not Consulting Experts Accountants, lawyers and other professionals should be consulted for better professional insight SCALING UP TOO FAST Hiring too many staff, opening multiple branches, over trading among other factors that often seem good but not right for a startup IMPORTANT POINTS AS ✓ Understand the Commitment and Challenges Involved in Starting a Business YOU START YOUR ✓ Come Up With a Great Name for Your Business BUSINESS ✓ Protect Your Personal Assets by Forming the Business entity ✓ Focus on Building a Great Product—But Don’t Take Forever to Launch ✓ Build a Great Website for Your Company ✓ Perfect Your Elevator Pitch ✓ Make the Deal Clear With Co-Founders ✓ Obtain a Tax ID (TIN) ✓ Set Up a Good Accounting and Book keeping System ✓ Use a Good Form of Employee Offer Letter or Employment Agreement ✓ Make Sure All Employees Sign a Confidentiality and Invention Assignment Agreement  ✓ Consider the Steps You Should Take to Protect IMPORTANT POINTS AS Your Intellectual Property ✓ Become a Strong Salesperson YOU START YOUR ✓ Understand Financial Statements and Budgets BUSINESS ✓ Market Your Business Expressively ✓ Use Consultants and Freelancers to Supplement Your Team ✓ Don’t Go Overboard on a Business Plan ✓ Determine Which Permits, Licenses, or Registrations You Will Need for Your Business ✓ Set Up Appropriate Books and Records for Your Business ✓ Properly Insure Your Startup ✓ Determine How to Divide Equity Among the Startup’s Co-Founders IMPORTANT POINTS AS ✓ Understand Key Points About Seeking Venture YOU START YOUR Capital Financing ✓ Pay Attention to Your Business Contracts BUSINESS ✓ If You Plan to Lease Office Space for Your Business, Focus on Key Issues of renting leasing, especially the need and cost. ✓ Thoroughly Research Your Competition ✓ Consider Adopting a Stock Option Plan to Attract and Motivate Employees ✓ Focus on Offering Exceptional Customer Service ✓ Hire an Experienced Startup Attorney ✓ Get Comfortable With Public Speaking  ✓ Each Group will be a maximum of 10 students. A Don’t forget, the Group Leader is to be selected. ✓ At the end of the session, Each Group will deadline for sending present their Business Plan to a panel of Judges your group details is ✓ Each group is to send me the group details using excel format as shown below: October 11  INTRODUCTION TO THE OUTLINE OF A BUSINESS PLAN I. Introduction I. Introduction a. Executive Summary b. Company Description II. Market Research II. Market Research a. Market Analysis III.Business Offerings b. SWOT Analysis IV.Strategy and Implementation III. Business Offerings a. Products or Services V. Management and Organization IV. Strategy and Implementation a. Marketing and Sales Strategy VI.Financial Planning b. Milestones and Timeline V. Management and Organization VII.Future Plans a. Organization and Management VI. Financial Planning VIII.Supplementary Information A. Funding Requirements B. Financial Projections VII. Future Plans ALL GROUP BUSINESS PLAN MUST FOLLOW THE a. Expansion FORMAT STATED ABOVE (ALL SUBMISSIONS WILL BE IN b. Diversification WORD DOCUMENT FORMAT). You May wish to extract c. Pivot VIII. Supplementary Information the vital aspect as a PowerPoint for your class a. Appendix presentation  ELEMENTS OF THE BUSINESS PLAN o Company Description: o Executive Summary: o Provide an overview of your company's history and background. o Briefly describe your business idea. o Explain your mission statement and core values. o Summarize your business goals and objectives. o Describe your business's legal structure (e.g., sole proprietorship, LLC, o Highlight key points from each section of the plan. corporation). o Market Analysis: o Products or Services: o Conduct market research to understand your target market. o Detail the products or services you offer. o Define your target audience and buyer personas. o Explain how your offerings meet customer needs. o Analyse industry trends and competition. o Highlight any unique selling points (USPs). o Identify market gaps and opportunities. o Discuss the development or production process. o Marketing and Sales Strategy: o Organization and Management: o Outline your marketing and advertising plans. o Introduce key team members and their roles. o Describe your sales approach and channels (e.g., online, o Provide resumes and background information for leadership. retail, wholesale). o Discuss your organizational structure. o Set pricing strategies and sales goals. o Highlight any key partnerships or advisors. o Include a marketing budget. o Funding Requirements: o SWOT Analysis: o Explain how much capital you need to start or grow your business. o Identify your business's strengths, weaknesses, opportunities, and threats. o Specify how you intend to use the funds. o Use this analysis to develop strategies and mitigate risks. o Provide a detailed financial plan. o Milestones and Timeline : o Set key milestones and timelines for o Appendix : achieving business goals. o Financial Projections: o Include any additional documents or information that supports your plan. o Create a financial forecast for the next 3-5 years. o This may include market research data, o Include income statements, balance sheets, and cash flow product images, legal documents, etc. statements. o Project revenue, expenses, and profitability.  Conclusively, identifying business ideas and engaging in startup activities is a dynamic and rewarding procedure. It involves creativity, research, and a willingness to take calculated risks. By engaging in entrepreneurship, you have the chance to contribute to the economy, solve problems, achieve personal growth, and potentially reap financial benefits. Questions, Insights and Answers Thank You ENT 202, 24C