Economics, Finance and Entrepreneurship Skills:

Foundation

B. Tech 1 st year

Dr. Ranabir Banik

Assistant Professor
Department of Basic Science & Humanities
Institute of Engineering and Management (IEM), Kolkata
SELF DISCOVERY
 FLOW

1. Childhood passion became a basic idea for a successful businessman.

2. Interest and passion will reflect in the business setup.
3. There are certain things that we deeply love and enjoy doing.
4. Area of interest or passion which consumes them completely.
5. It is an interest that they pursue on their own, and enjoy doing so.
6. This area of passion is known as “FLOW”

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 WHEN A PERSON IS SAID TO BE IN A STATE OF FLOW?
1. Do something they love
2. Lose track of time and immersed in what they are doing.
3. Have the requisite talent/skills to do this.
4. Take the initiative; you do not need to be pushed to do this.
5. Grab every opportunity in this area to improve your skill levels.
6. Even if the activity is challenging, you enjoy taking up the challenge.
7. Flow is not leisure activity which you do in order to relax or take a
break from serious work

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To become an successful entrepreneur, love and passion towards what
you do is very important. It will motivate you.
What make them to successful entrepreneur?
Do they have same thought process?
Effectuation principles
Effectuation principles
Effectuation principles
They sell Dresses for dolls
TEAM: SHARED LEADERSHIP
 OVERVIEW OF LEADERSHIP

1. You have your product/service offering in place now, you also have an inkling of the funds
that you will require to set your venture in motion and from where to source those funds.
2. But who will take care of all these aspects?
3. Can you do it alone?
4. Obviously not!
5. You need people, you need a team, and you need to manage that team.
 LEADERSHIP STYLES – which best suits an entrepreneur venture?

1. Lead roles are assigned based on the experience and expertise of each person
2. Main aspect is to take the entire team to achieve a common goal

Driving Principles are:

 HOW TO FIND CO-FOUNDER?

LOOK FOR PEOPLE WITHIN YOUR NETWOR WITH SIMILAR BACKGROUNDS

WHY TEAM IS NECESSARY?
HIRING
 HIRING STRATEGY
1. Can not afford a costly hiring mistake
2. Adding a wrong person to a team hurts
 HIRING STRATEGY – Team

Finding a right team of people who share your passion, commitment and vision is an
entrepreneurial dream come true
 Customer and Consumer

Are they same or different?

Let us discuss using some examples
Baby food
Can the babies be the customers?

Of course NOT
They cannot buy their own products
Let us take another
example…
Gift Items
 One who buys = CUSTOMER

One who consumes = CONSUMER

So, who should get more attention by a
budding entrepreneur?

It depends on the product

Both customer and consumer has equal
importance in today’s businesses.
Try to put yourself in the shoes of customer as well
as of the consumer while designing the product.
 Market types

There are typical four kinds of markets

 Existing Market

Re-segmented Market

New Market

Clone Market
EXISTING MARKET
1. When investors and entrepreneurs go after an existing market – the advantage
is that there’s little or no market risk.
2. In this market type:
 Competitors exist
 Customers want and need better performance
 Technology is usually the driving factor
 The risk is to think that competitors are dumb or too slow
NEW MARKET
Customers do not exist in the present, so revenue generation takes years
 Market size is zero
 Customers need to be made aware of their needs
 You must consider what factors can you create that has never been offered.
RE-SEMENTED MARKET
The Re-segmented market is a hybrid between a New market and an
Existing market in the sense that it is a New Market created from a
small segment from an existing market.
CLONE MARKET
In a Clone market, customers are known because you copied an existing
market.
It is called a Clone because, in this market type, you are going to localize all
those specific issues for your country or region.
That said, it takes a foreign business model and adapts it to local conditions.
There are no competitors if you are the first one and the risk may be in
misjudging the local needs.
Why MARKET identification is important?

▪ Market size
▪ Cost of Entry
MARKET: ▪ Launch type
▪ Competition
▪ Positioning
Why MARKET identification is important?

▪ Sale model
SALES: ▪ Margin
▪ Sale cycle
Why MARKET identification is important?

▪ Capital
FINANCE: ▪ Profitability
Why MARKET identification is important?

▪ Needs
CUSTOMERS: ▪ Adaptation
Segmentation & Marketing
 Segmentation

Segmentation is the process of

defining and subdividing your
customers into distinct
segment having similar needs,
wants or demands.
 Targeting

Targeting or target marketing

is deciding which potential
customer segments your idea
or product or service will focus
on.
 Segmentation always comes before targeting

It helps you to select whom you market your product?

Remember: there is no way you can meet the demands of everyone.

 Segmentation by Geography

Search engine for Chinese people

 Segmentation by Demography

Gender
Age
Occupation
Religion
Etc.
Segmentation by Psychographics
Segmentation by Behaviour

Segments their user based on

their behavior (say, daily use)
Segmentation by Benefits

Segments their user benefits

Niche Marketing
It is the most appropriate way to start a new
venture.
Why Niche marketing? Allow sensible use of resources
Identify clients easily
Easily become the expert
Obtain repeat business
Makes marketing easy
Take an example

For Aisha:
World largest halal baby
food brand
Does Niche Marketing means it will not grow?

NO

It can really grow to a large business venture.

Sportswear for athletes
No. 2 brand after NIKE
Specialist outfitters for
mountaineers
BOOT STRAPPING
 BOOT STRAPPING

WITH OUT ANY EXTERNAL CAPITAL

Is it Possible? YES, absolutely

EXAMPLE
 BOOT STRAPPING

INVOLVES TAPPING IN TO OWN RESOURCES

 BOOT STRAPPING – PERSONAL FINANCES

Initial funding to look at – Personal SAVINGS

Setting out some amount for emergency - begin a through
inventory of your assets
EQUITY IN REAL ESTATE
 BOOT STRAPPING – LOANS FROM FRIENDS AND FAMILY

Another Source of Funding

Loved ones are willing to support you – make sure to follow the
guideline

DON’T ASK MORE THAN THEY OFFERED TO LOSE

DESIGNATED AMOUNT FOR ACHIEVING A MILESTONE

Value Proposition Design
 Google Glass: Head mounted wearable
computer which is designed in the shape of a
pair of glasses. It can capture images quickly and
also can display like a smartphone.

Sounds cool.
Right?
But it failed in market.
 Why it happened?

o Is it Bad Marketing?

o Is it designed poorly?
 o Did the customer want it?

Value proposition
design

Your product or services should match what your customer wants.

Value proposition design: Simple and Comprehensive process of
designing and testing value proposition. It takes the guesswork
out and helps you to create product and services that perfectly
match the customers’ needs and desires.
Customer Jobs: These are the simple things
which the customers are trying to get done.
Customer Pains: Pains are those which annoy the
customer before, during or after a job done.
Gains: Gains are the outcomes or benefits which
the customer actually wants.
Prioritize
 Example

Wedding Planner
 Jobs

1. Organize a lovely wedding

2. Not incur too much expenses

3. Impress their friends

 Pains
1. Might not have time

2. Might not be able to finish their preparation

3. Trouble sending invites

4. Not getting best price for the items they need to buy
 Gains
1. Someone takes care of everything

2. Caterers

3. Decorators

4. Music Band
 Product and Services
It refers to all the products and services you offer. It
helps the customers to complete their jobs. It create
value when they are related to customer jobs, pains
and gains.
 Pain relievers
Pain relievers are those which reduce or eliminates
the customer pain points.
 Gain Creators
It creates outcomes and benefits that the customers
expects, desires or is surprised by.
 Example

Wedding Planner
 Product and services

1. Online wedding service via app

2. An efficient wedding planner

 Pains relievers
1. Service management

2. Contracts that can be signed online

3. Price comparison

4. Quality assurance
 Gains creators
1. Saving time

2. Saving money

3. Access to top notch resources