Entrepreneurship Series Review of Week 1

Many Types of Businesses Some Make or Grow things

Many Types of Businesses Some businesses buy and sell things

Many Types of Businesses Some businesses transport goods and people

Many Types of Businesses Some businesses provide important services

Many Types of Businesses Some businesses deal in money

Businesses provide to our… Needs

Businesses provide to our… Wants

How do businesspeople make profits? good management high prices hard work service to customers The most profitable businesses are those that provide the most services and sell the most goods. They do this because they serve their customers better than other businesses. Business success is therefore a matter of service.

How Does a Business Grow? Imagine there are two people:  Hiren – works in a company in Gujurat.  Ramakant – Hiren’s friend who has some extra money to spend.

How Does a Business Grow? Hiren starts buying materials to make torches with the money he makes from the company. He sells them in his free time. He owns it all, and manages the business himself.

How Does a Business Grow? His side business is a success, bringing in about Rs. 4000/month. But he needs more space and more workers to keep up with the demand. What should he do?

How Does a Business Grow? He asks his friend, Ramakant, if he can put in some money to help him out. Ramakant agrees. Hiren and Ramakant are now partners, meaning they share the profits.

How Does a Business Grow? Hiren opens a shop in the village, naming it Ramren Torches. The new business is able to hire more workers and sell more products. Everything is running smoothly, but both Hiren and Ramakant realize they want to grow bigger but need a little more money.

How Does a Business Grow? The problem is that both of them do not know anyone (friends or family) who will give them money. What should they do?

How Does a Business Grow? Since they have no family or friends to ask, they decide to ask others to invest and buy shares of the company. Those shareholders are now part-owners of Ramren Torches (which subsequently changes its name to Torches Pahije Limited). The shareholders make money when Torches Pahije Limited makes money but lose money when the entity loses money.

How Does a Business Grow? With the new capital, Torches Pahije builds a new, big company building and hires many local villagers to work on the production line as well as the business unit. And that is how a business grows…

Business Growth Without Banks Notice how throughout the growth of the company never turned to the bank for money. You can avoid bank loans and still start a very profitable business.

Visioning: What is it? Visioning is being able to look into the future, your future, and see where you want to be. nowfuture VISION goals

Your Goals Should Be SMART Specific – Cannot be vague and broad Measurable – You can measure your success as you’re trying to achieve it Attainable – It cannot be something impossible; make it within your reach Relevant – Goals should be appropriate to who you are and what you do Time-bound – Goals should not be indefinite; there should be a time limit

Characteristics of Successful Entrepreneurs Drive  The desire to work hard to accomplish one's goal Vision  The ability to see the end results of one's goals while working to achieve them Confidence  The belief that you can do what you set out to do

Characteristics of Successful Entrepreneurs Risk-taking  The courage to expose oneself to possible losses Competitiveness  A willingness to compete with others and test oneself against them Discipline  The ability to stay focused and adhere to a schedule and deadlines

Characteristics of Successful Entrepreneurs Honesty  A commitment to refrain from lying; to be truthful and sincere in dealings with other people Organization  the ability to structure one's life and keep task and information in order Adaptability  the ability to cope with new situations and find creative solutions to problems

Profile of Successful Entrepreneur Ms. Pranaya Patil, 32 Saswad Tal: Purandar She was married in 1995 and with a desire to study further took admission in the B.A.

Entrepreneur Profile: Pranaya Patil While she was doing her B.A 2nd year, she got divorced from her husband. After the divorce, she faced many problems. In such an awful condition, she came back to her parent’s home. But her self-esteem never let her down. She started thinking in a positive way to cope with the depressing situation.

Entrepreneur Profile: Pranaya Patil Wanting to start her own business, Pranaya initially worked at various shops. She became a cashier in a shoe shop in Pune. After working for 1 year at the shoe shop, she joined Wama Sarees at Pune for 1½ years as a computer operator. While she was working with Wama Sarees, she thought to get some technical experience, which could be utilized in the career development, hence she started working with a beauty parlor at Fatima Nagar, Pune.

Entrepreneur Profile: Pranaya Patil After leaving the Beauty Parlor, she did various other handicrafts and related courses. She has done courses in fashion designing, soft toys making, ceramic paintings, woodcutting, dry cleaning, rubber moulding, beauty parlor, rangoli, photography. Among other courses she did a course in soft luggage manufacturing, her eventual passion.

Entrepreneur Profile: Pranaya Patil In 2003, Pranaya decided to start a business in soft luggage She was trying to approach some banks for financial help but she was always refused on the ground of not having any collateral and guarantor

Entrepreneur Profile: Pranaya Patil She was receiving many orders but did not have enough machines or material to fill those orders. After giving her proposal to an Entrepreneur Organization, they lent her Rs. 50,000/-.

Entrepreneur Profile: Pranaya Patil Her turnover in was Rs. 15,74,518/- with a net profit of Rs. 1,28,740/-. In , the turnover was Rs. 16,97,272/- with net profit of Rs. 1,27,540/-.

Entrepreneur Profile: Pranaya Patil Having established her unit, she started teaching other women to take up the entrepreneurship. She got many students coming to her for the various courses. Besides running the production unit of soft luggage, she is also running various other courses such as beauty parlor, mehndi, soft toys, ceramic painting, etc.

Entrepreneur Profile: Pranaya Patil 8 people work full-time and 30 people part-time at her unit. So far she has provided vocational training to 450 students and motivated these students to take up entrepreneurship. As a result, out of 450 students, 15 are running a business successfully. There are some women in her unit, who undergo training and also cater to her customers as a part of their training.

Entrepreneur Profile: Pranaya Patil She was the winner of The CitiGroup Award for for running a Socially Responsible Business in the Western Region. Now, she has become a role model for other village youth. She also provides counseling support to many villagers. Recently, she established an NGO named Partha Foundation which encourages formation of SHG’s and gives vocational training.