2.  Having sensed the opportunities the next step is enterprise creation or establishment.  From the selected opportunities match with the given environment.  Then select the best one, amongst the available opportunities.

3.  Consumers  Existing companies  Competitors  Existing markets & products/services  Niche  Idea (word)  Analyse/examine your own wants & needs  R&D  Govt

4. Not suitable Entrepreneur Failure (2) Failure (3) SuitableSuccess (1) Enterprise Suitable Failure (4) Not suitable

5.  Without knowing the product, could one know its market?  Whose market will one find out without actually having the product?  Whose profitability will one find out without actually selling the product?

6.  Their own or partner’s past experience in that business line.  The govt’s promotional schemes…..  Profitability of product/Demand  Availability of inputs/FOP  Products reservation

7. Opportunity identification/selection process starts with generation of idea.  knowledge of potential customer needs  watching emerging trends in demands for certain products  one’s market insights through observation  Scope for producing substitute products

8.  Go through magazines…  New product introduced by the competitor  Knowledge from expertise

9.  Focus groups  Brainstorming (Alex in1938) follows 2 principles: Differed judgment, quantity breeds quality  Problem Inventory analysis

10.  Manufacturing Industry  Service based Industries  Ancillary Industry

11. EntrepreneurInternalEntrepreneurExternal StrengthsWeaknessOpportunitiesThreats Possesses knowledge, skills, competencies, Suffers lack of motivation, laziness, poor in marketing knowledge Changing requirements of society, more demand Change in the govt. Policies, increasing demand for substitutes, weather conditions

12.  Economic analysis  Financial analysis  Market analysis a) Opinion polling method i. Complete enumeration survey ii. Sample survey iii. Sales experience method iv. Vicarious method

13. b. Life cycle segmentation analysis (5 stages of product) o Technical feasibility

14.  Information collection  Information Organization  Acquiring Required/Vocational Skills  Financial Requirements  Market Assessment  Provision for crisis

15.  It is written statement of what an entrepreneur proposes to take up.  It is a kind of guide or course of action, what an entrepreneur wants to achieve  It is an instruction map to reach destination…..  Business plan can be defined as well as evolved course of action

16.  Dollinger ” The formal written expression of the entrepreneurial vision, describing the strategy and operations of the proposed venture”

17.  General Information  Project Description  Market potential

18. Personal details Industry profile Organization structure of the firm

19. 1.Physical Infrastructure (site) i. Raw material ii. Skilled Labour 2. Utilities Power, fuel, water 3. Pollution control 4.Communication system 5.Production process 6.Machinery & Equipment

20. 7.Capacity of the plant 8.Technology selected 9.R&D 10.Other common facilities

21.  Demand & supply  Expected price  Marketing strategy  After – sales service

22.  Capital costs and sources of finance  Assessment of working capital requirements  Other financial aspects; eg:BEP

23. GUIDELINESPLAN SECTION  Prepare plan yourself  Create back up  Use professional….  Be clear and precise  Avoid hyperbole  Error free  Contact information  Executive summary  Planned venture  Market research  Start - up plan  Operational plan  Market plan  Financial plan  Management team

24.  Sole Proprietorship  Partnership firm  Company  Co-operative society

25. ADVANTAGESDISADVANTAGES  Simple form of organization  Owner’s freedom  High secrecy  Tax advantage  Easy dissolution  Limited resources  Limited liability  Limited ability  Limited life of enterprise form

26. Advantages  Easy formation  More capital available  Combined talent, judgement and skill  Diffusion of risk  Flexibility  Tax advantage Disadvantages Unlimited liability Dividend authority Lack to continuity Risk of implied authority

27. Advantages o Limited liability o Perpetual existence o Professional management o Expansion potential o Transferability of shares o Diffusion of risk Disadvantages  Lack of secrecy  Restrictions  Management mischief  Lack of personal interest

28.  The Indian co-operatives societies Act of 1912, ” a society which has its objective of promotion of economic interests of its members in accordance with co-operative principles”

29. FEATURESDRAWBACKS  Voluntary organization  Democratic management  Service motive  Capital and return thereon  Govt ctrl  Distribution of surplus  Lack of secrecy  Lack of business acumen  Lack of interest  Corruption  Lack of mutual interest

30.  Nature of business  Areas of operation  Degree of control  Capital requirement  Duration of business  Govt regulation

32.  Feasibility means whether some idea will work or not. Preliminary feasibility studies are the intermediate step in project evaluation.  A ‘Pre-feasibility study’ should be viewed as an intermediate stage between a project analysis and feasibility study.

33.  Geographical factors, climatic conditions, socio- economic level of population, preliminary estimate of demand, existing products and their market shares etc.  Identifying potential alternatives for the project idea.  Identification of potential financial resources for the project.  Identifying lacking information which will be necessary for the feasibility study.

34.  Need analysis  Process work  Engineering & Design  Cost estimates  Financial analysis  Project impacts  Conclusions and reommendations

35.  Technical  Marketing  Economic  Financial  Cultural  political  Environmental  legal

36.  Input analysis : concerned with the identification and quantification  Through out analysis: process or operations  Output analysis: product specification

37.  Investment outlay and cost of project  Means of financing  Projected profitability  Break- even point  Cash flows of the project  Investment worthiness judged in terms of various criteria of merit  Projected financial position

38.  Consumption trends.  Past and present supply position  Production possibilities and constraints  Imports and Exports  Competition  Cost structure  Elasticity of demand  Consumer behaviour, intentions, motivations, attitudes, preferences and requirements  Distribution channels and marketing policies in use  Administrative, technical and legal constraints impinging on the marketing of the product

39.  Economics is the study of costs- and- benefits. In regard to the feasibility of the study  The entrepreneur is concerned whether the capital cost as well as the cost of the product is justifiable  Economic feasibility leads one to the unit cost of the product, commercial feasibility informs whether enough units would sell.

40.  Clearances and Approvals: Setting up of an industrial unit requires the entrepreneur to obtain a number of clearances and approvals regarding land use, pollution control and safety. In this regard, you would be required to interact with the local government authorities such as the municipalities/ village panchayats and state pollution control boards.

41. INTERNALEXTERNAL  Retained earnings  Controlling working capital  Sale of assets  Owner’s personal savings  Reducing stocks  Trade credits  Short term  Long term

42. INTERNALEXTERNAL  Retained earnings  Controlling working capital  Sale of assets  Owner’s personal savings  Reducing stocks  Trade credits  Short term  Long term