1. Lecture 14 Business Entrepreneurship
Dr. Hatem Elaydi
ECOM 5368 Engineering Management (Entrepreneurship & ework)
Islamic University of Gaza
Oct 16, 2016

2. ECOM 5368, Dr. H Elaydi, Fall2016

3. Business Planning Self-Assessment Evaluate Writing a Business Plan
Cash Flow and Projections
Legal
Regulatory Requirements
Licensing Technology
Intellectual Property
Technology Transfer
Franchising
Accounting
Tax Credits
Facilities, Office & Lab Space
Incubators
ECOM 5368, Dr. H Elaydi, Fall2016

4. Market Assessment Marketing Market Analysis Product Development
Prototypes
Pricing Products & Services
International Markets
ECOM 5368, Dr. H Elaydi, Fall2016

5. Team Assessment Management Human Resources
ECOM 5368, Dr. H Elaydi, Fall2016

6. Financial Preparation
Financing  – Glossary of Terms
Financial Resources
Cash Flow and Projections
Bootstrapping
Financing – Debt
Financing – Equity
Term Sheets
Angel Investors
Venture Capital
Grants
Crowd funding
Buying or Selling a Business
ECOM 5368, Dr. H Elaydi, Fall2016

7. Toolkits Self-assessment Sales Toolkit
ECOM 5368, Dr. H Elaydi, Fall2016

8. Other resources Library Resources Inventors & Entrepreneurs Clubs
University Partnerships
Networking Resources
Economic Development Organizations
ECOM 5368, Dr. H Elaydi, Fall2016

9. Market Research

10. Market research A deep knowledge of the key competitors.
Knowledge of all the other players in the market, including smaller competitors, suppliers, distributors, dealers and service providers.
Complete knowledge of the market size and profitability.
How much revenue the market generates and how fast it will grow over the next 5 to 7 years.
Knowledge of the major trends that affect the market, including legal and regulatory issues.
A clear understanding of your buyer.
A strong, clear value proposition that speaks specifically to your buyer.
Clear picture on distribution, pricing, packaging, fulfillment, maintenance and support.
ECOM 5368, Dr. H Elaydi, Fall2016

11. Market research There are several ways to segment a market by:
geography,
demographics and
psychographics.
You need to determine which technique will best serve your business.
When you segment a market by geography, you choose to promote your goods/services to a community, county, region, state, nation, or globally.
What option(s) will provide you with the greatest benefit at the lowest cost? What do you know about your current customers? Where are they located?
ECOM 5368, Dr. H Elaydi, Fall2016

12. Region
If you have their address in your customer database you can easily sort them to find out where they reside.
Also ask them how they heard about your company.
Did they respond to an advertisement or did they just happen to wander in?
You really need to know where your customers are coming from so that you can plan future advertising campaigns.
If you are missing some regions, how can you construct a campaign to attract them?
ECOM 5368, Dr. H Elaydi, Fall2016

13. Demographics
Identifying your market by demographics enables you to develop more effective advertising and promotion programs aimed at your distinct customer groups.
As you look at the demographic components, ask yourself:
What gender are my customers?
What age groups do they fall into?
What income level do they have?
What education level have they attained?
What about children—do they have kids at home and
what are their ages?
If you don’t know the answers, start collecting that information via an anonymous survey tool.
ECOM 5368, Dr. H Elaydi, Fall2016

14. Psychographic
The third way to identify your market is to use psychographic similarities.
Psychographics is the use of demographics to study and measure attitudes, values, lifestyles, and opinions for marketing purposes.
This includes personality, buying motives and the consumers’ usage of the products.
Understanding your customers at this level aids you in optimizing your promotional strategies to appeal to their purchase motives, usage styles and lifestyles.
ECOM 5368, Dr. H Elaydi, Fall2016

15. Example
The market for sunscreen may consist of psychographics segments with purchase motives of health, beauty, and safety.
The usage styles for sunscreen may include multiple times a day, daily, event-only or less frequently.
The lifestyles of sunscreen purchasers may include athletes, parents with young children, older people concerned about skin cancer, people who spend recreational time outdoors, boating enthusiasts, etc.
ECOM 5368, Dr. H Elaydi, Fall2016

16. Psychographic
Psychographic characteristics inform not only advertising decisions but also packaging and distribution of products.
Methods of gathering psychographic data include conducting individual interviews, organizing focus group studies, and purchasing reports from companies who compile market research.
ECOM 5368, Dr. H Elaydi, Fall2016