INTRODUCTION
· The field of management existed for decades.
· The landscape of management changes daily.
· Therefore, requirements and demands will keep changing.
Formal and informal
businesses
· Not registered
· Contribute to GDP
· do not pay tax
· registered with authorities
· activities are not monitored
· e.g Capitec bank, Nando’s
· e.g. vendors, freelances
Types of need satisfying organisations
1) For profit businesses
2) non profit businesses
3) state-owned enterprises (SOEs)
4 elements of business
· Human and human activities
· Goods and services; processes that convert resources into a goods and services
· Profit/surplus
· Exchange
Business name: FitCheck
People involved Exchange
· owner · We offer a service, they pay us
· investor · For every 5 classes you pay for, you get 1 free
· employees
· customers Digital marketing
· Cute mirrors with FitCheck stickers for mirror
Goods and services selfies
· Equipment ·
· Pilates classes
· Stretching class Slogan
· Promotion Bundles “Check your progress, Fit your goals”
· Online classes
· Plant based store
·
The entrepreneurial process
Step 1: generating ideas
· not quick and easy
· see potential gaps in the market
· is the process in which an already existing g product is improved to meet customer demands and will
create a new product
Step 2: Evaluating opportunities
· ideas are not always good investments
· first need to consider suggestions, and ideas shared with consumers and conduct a feasibility study
· must respond to questions in honest and objective manner:
— are there enough attractive markets out there to purchases the product?
— is the suggested solution to the idea or opportunity workable from both the market perspective and the
technological perspective?
— who are the competitors and what puts your product at an advantage within the market?
— do you have a passionate and committed team to drive this idea or opportunity into the market?
Step 3: Writing a business plan
· gives direction
· state objective
· structure
· money
— write down idea on paper
— detail the process that will be used to make this product available and how it will be managed
Step 4: Identifying required resources
· consider the resources requird
· tangible resources
· intangible resources
Step 5: Formatting and managing the business
· implementation and activation of business plan
· Setup of of organisational structures and processes USP - unique selling
point
Step 6: Growth and harvest
· monitor growth and expansion of the business
· Business must add economic value to the economy, community and entrepeneur
· should remain competitive, sustainable and profitable
The business plan
Why is it important?
· helps to assess the feasibility of the idea
· helps to ensure the best chances of success
· helps to ensure effective and efficient management
· attracts investors
· helps to map the future
· identifies growth potential
· it is an action plan
· helps with the management of cash flow
· Cover page
· Executive summary
· Business history and team
· Environmental analysis
· Vision and mission statements
· Product and service plan
· Marketing plan
· Operational plan
· Financial plan
· risk analysis
·
