ENTREPRENEURHIP CASE STUDY ANALYSIS

(Paper Code - MBA/203)

FILE

TOPIC : LIFE CYCLE OF THE ENTERPRISE

Name of Student: Yogesh Kumar

College Roll No. : 180060
Univ. Roll No. : 18038701059

Submitted to:
HOD - Management

Department of Management
SHRI RAM COLLEGE OF ENGINEERING AND MANAGEMENT
Palwal, Haryana

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 TABLE OF CONTENTS

S. No. Topic Page No.

1
Background of the entrepreneur

2
History of enterprise

3
Motivations for selecting entrepreneur
career

4
Process of starting the enterprise

5
Type of enterprise

6
Production process

7
Marketing policies

8
Investment
9
Institutional finance
10
Financial monitoring and control

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 11
People management profit and loss

12
Growth and development

13
Problems faced

14
Family support and opposition

15
Future plans

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 PROMPT PACKWAYS

Background of the entrepreneur :-

Through the interview that I conducted with Mr. Gaurav Satija, he studied Masters in Business
administration form Maharishi Dayananad University Rohtak. He startup with the marketing of
industrial products in the age of 25 Years in 2009 with ITW product franchises.

HISTORY :-

Established in the year 2009, we, 'Prompt Packways', are one of the leading organizations
engaged in distributing, wholesaling, trading and supplying a comprehensive collection of
Industrial Packaging Machines, Tools and Consumables. Our products range include Material
Handling Equipments, Packaging Machines & Pouches Machine. Our consumables are known
for their self adhesiveness, moisture resistance and high tensile strength. In addition to this, our
machines are widely appreciated by the customers due to their longer service life, abrasion &
corrosion resistance, robust construction and less maintenance.

We have an in-house warehousing facility that helps us in storing all the products in an organized
manner. This is properly managed by a team of expert professionals, which has rich experience
in this domain. Our team uses all the available resources for carrying out business operations
smoothly. It also helps us in maintaining long term friendly relationships with the customers to
understand their exact requirements & demands in a better way.

Under the efficient leadership of our mentors 'Mr. Gaurv Satija', who have years of experience in
this field, we have gained a respectable position in the market. Their client centric approaches,
transparent business dealings, sound strategies and in-depth industry knowledge have helps us in
garnering a huge customer base across the country wide market.

Brands We Deal in

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 We offer these brand products:

 SIGNODE INDIA LIMITED

 TESA TAPES INDIA PVT. LTD.
 GODREJ & BOYCE MFG. CO. LTD.
 STOROPACK INDIA PVT. LTD.

Motivations for selecting entrepreneur career :-

Motivation is a daily struggle for entrepreneurs, so I’ve put together these motivation-boosting
tips from 10 of today’s successful entrepreneurs.

1. Fear of failure :- “No matter what business you’re in, you’re always at risk particularly
in technology, where it changes so rapidly you’ve got to put in the effort to keep up,”
writes the Shark Tank panel member. “There’s always the opportunity for some 18-year-
old to come out of nowhere and crush you—that motivates the hell out of me.”

“Every one of my companies, whether something I started or something I invested in, is a

scoreboard. How am I doing? A lot of investors or advisers play it as a numbers game.”

“If they invest in 20 companies, as long as one success covers 19 losses, they did OK. I look at
every loss as a huge failure. I had an investment go bad recently.

2. Do what you’re passionate for :- “Unfortunately, your dream job may not always be
the best decision financially. Sometimes your hobbies are best kept as projects in your

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 spare time for fun (which is great!). If you do want to try to turn your passion into a full-
time job, these tips can help you get started the right way.”

 Improve something that you’re already doing.

 Figuring out where market.
 Sharing your passion with others.
 Stay happy and motivated by assigning tasks that you’re not a fan of to someone else.

3. “Keep affirmations where you can see them :- It’s so easy as an entrepreneur to get
sucked into feeling exhausted or frustrated, and often the blame is yours alone,” But a
negative mindset sucks up mental bandwidth and energy that you need to stay focused and
successful. "It is crucial to maintain an optimistic attitude in the face of setbacks. Whenever
you see a quote or a picture that helps you stay positive, place it front and center so you can
remember what this journey is all about.

4. Surround yourself with highly successful and motivated people :- "No one does it
alone," said Mark Zuckerberg during a Q&A in 2016. "When you look at most big things
that get done in the world, they're not done by one person, so you're going to need to
build a team."

When building your All-Star team, seek out people who excel in the areas where you’re
not strong or have less experience. "You're going to need people that have
complementary skills," Zuckerberg emphasized. "No matter how talented you are, there
are just going to be things that you don't bring to the table."

5. Never feel sorry yourself :- “All of my best successes came on the heels of a failure, so
I’ve learned to look at each belly flop as the beginning of something good,”

“If you just hang in there, you’ll find that something is right around the corner. It’s that
belief that keeps me motivated. I’ve learned not to feel sorry for myself, ever. Just five
minutes of feeling sorry for yourself takes your power away and makes you unable to see
the next opportunity.”

6. Look for inspiration :- Inspiration is a driving force that you can use to motivate you.
Also, the driver and passenger stories we hear every day. In a past team meeting, we had a
mother come in and tell the story herself. “These stories inspire us to think how we can

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 make things more efficient and create a platform for two people to have a really positive
interaction?”

7. Don’t obsess over your vision :- Yes. Think about your vision. But don’t spend too much
time over it or it will bog you down. only spends around 30 minutes a week on his vision,
besides those 30 minutes, he spends a majority of his time focused on the milestones that
are the most immediate and critical.

8. Be grateful :- “Most of the time when people ask me about motivation, 80 percent of the
time I attribute it to gratitude. If you want real fuel to win, be grateful,” “Gratitude is what
has gotten me through my toughest moments in business. Whenever I have lost a deal to a
competitor, or an incredible employee, or millions of dollars in revenue, I default to
gratitude. It’s impossible not to stay motivated or get too down when you’re feeling
grateful.”

9. Forget about motivation :- “So many people wait to feel ‘motivated’ before they do
anything. Here’s a newsflash: happy productive people do not wait for motivation, they
just get on with it,'' said Marie Forleo.

Process of starting the enterprise :

Here are ten simple steps that you can take to help develop your business idea and start your own
business.

Step 1: Know Yourself :

It is often necessary to assess yourself before you can assess the potential of your business idea.
Do you know who will buy your product or service? What benefits does your product or
service offer to them and how much would they be willing to pay?
Step 2: Are you a Risk Taker?
Starting a new business can be an exciting and challenging time, however, it can also be a period
of uncertainty and risk. For some it can mean risking their life savings, secure employment
and family security. Are you fully prepared for this?
Step 3: Market Research
Market research is essential in helping you to identify your target market and getting to know
your potential customers. Conducting market research will also help you to identify who
your competitors are and how to compete effectively in a given market. Research is also
effective in assessing demand for a new product or service.
Step 4: Examine Your Business Requirements

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 Consider the best location for the business
 Identify your basic equipment requirement and costs
 Will you need to employ more staff?
 Identify your Insurance requirements

Step 5: Calculate Investment Requirements
 Identify all start-up costs associated with the business
 Identify ways of financing your business venture
 Seek financial support and benefit from direct referral to Government Supports

Step 6: Developing your Marketing Strategy

 Marketing your enterprise is a fundamental aspect of starting up
 Research the most cost-effective methods of marketing your business
 Write your Marketing Plan

Step 7: Developing Your Sales Plan

 Having assessed your business idea, estimate your selling price
 How will you promote the enterprise?
 Who/where is your target market (local/national/international)?
 What channels of distribution will be used?
 Determine the break-even point

Step 8: Decide on an appropriate legal business structure

It is important to research the types of business ownership to help you make the best decisions
for your business. You can choose whether you want a:

 Sole trader
 Partnership
 Limited Company

Step 9: Be aware of legal obligations that will affect your business

 Register your business name with the Companies Registration Office (CRO).
 You will need to understand your tax obligations and register as self-employed with your
local revenue office.
 You will need to be aware of your statutory obligations such as trading licenses, planning
permission, insurance, health & safety, patents

Step 10: Write your Business Plan

Business Planning is fundamental to success in business. It is the key to making things happen
and reaching goals. A business plan can be used as an operating tool that will help you to make
important decisions and manage your business effectively, the business plan also has a number of
other uses.

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Type of enterprise :

Our Enterprise is a MSME and We have developed a capacious warehouse that supports us in
storing all our products in a systematic manner. It is managed by a team of warehousing
experts, which has rich experience in this domain. Our team maintains a track record of all
incoming and outgoing items for avoiding any chance of inventory loss. In addition to this,
our warehouse is well-connected with roads, ports & stations that help us in delivering our
consignments with an ease. We also pack all our products using high grade packaging
material and latest technology to ensure complete safety and security during transportation.
In addition to this, we also provide customize packaging to our customers for meeting their
exact requirements & demands.

Production process :

'Prompt Packways', are one of the leading organizations engaged in distributing, wholesaling,
trading and supplying a comprehensive collection of Industrial Packaging Machines, Tools
and Consumables. Our products range include Material Handling Equipments, Packaging
Machines & Pouches Machine. Our consumables are known for their self adhesiveness,
moisture resistance and high tensile strength. In addition to this, our machines are widely
appreciated by the customers due to their longer service life, abrasion & corrosion
resistance, robust construction and less maintenance.

We have an in-house warehousing facility that helps us in storing all the products in an organized
manner. This is properly managed by a team of expert professionals, which has rich
experience in this domain. Our team uses all the available resources for carrying out
business operations smoothly. It also helps us in maintaining long term friendly
relationships with the customers to understand their exact requirements & demands in a
better way.

Marketing policies :-

we have gained a respectable position in the market. Their client centric approaches, transparent
business dealings, sound strategies and in-depth industry knowledge have helps us in
garnering a huge customer base across the country wide market.
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Marketing strategies should ideally have longer lifespans than individual marketing plans
because they contain value propositions and other key elements of a company’s brand,
which generally hold consistent over the long haul. In other words, marketing strategies
cover big-picture messaging, while marketing plans delineate the logistical details of
specific campaigns.

Investment :-

Although money is needed to expand and advance a business, an entrepreneur can significantly
contribute to the growth of his or her company by simply investing intangible resources such as
time, energy and creativity. In fact, some of the most rewarding investments that I have made in
my own business and career required very little, if any, use of monetary resources.

For example, a startup can benefit from its founder attending a free networking event for people
in his industry. That act, attending a networking event, in itself is a business investment. He
invests time and effort and in return, he gains new contacts, future affiliates and possible
partners. Likewise, an entrepreneur can create new leads by simply writing and publishing an
useful article in the local newspaper.

Institutional finance :-

In order to actually make the enterprise running, the entrepreneur still needs to undertake some
more activities.

For example, he/she needs to procure material, machinery, men, etc. to produce some product(s).
Finance is required to procure all these inputs and resources required to run an enterprise. For
example, it is finance only that enables an entrepreneur to buy raw material or input from
someone, purchase machinery and equipment from someone else, hire manpower from labour
market, meet day-to-day business expenses and so on.

These resources and inputs cannot be procured without finance. The fact remains that it is the
availability of finance that keeps the enterprise wheel on, or say, that keeps enterprise running on
continuous basis. It is due to this vital role of finance in enterprise running, finance is regarded as
life-blood of an enterprise.

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Now an important question arises is where does this finance come from? Alternatively speaking,
what are the sources of entrepreneurial finance? There are two major sources of entrepreneurial
finance: entrepreneurs own funds and funds from outside like financial institutions.

There is ample research evidence available to state that the scope for entrepreneur’s own funds is
highly limited. The reason is not difficult to seek. Majority of entrepreneurs are unemployed
before assuming to entrepreneurial career. As such, they lack in their own funds required to run
the enterprise.

Therefore, they depend on outside funds required to run their enterprises. The result is either
some prospective entrepreneur give up the idea to start their enterprises or start enterprises with
inadequate funds. The consequence is the enterprises suffer from inadequate funds since
beginning itself.

Such a state of enterprise affairs is just like enterprise malnutrition. Then, the future of enterprise
is a common man’s guess: sickness and closure. An idea about the magnitude of this problem can
be had from the fact that about 10 per cent of total small enterprises in the country are sick of
which 90 per cent of units have become non-viable, i.e. the incidence of sickness has advanced
to the extent beyond repair (Government of India 2010).

Lack of funds has been found one of the major causes of sickness in small enterprises. The lack
of funds causes malnutrition to small enterprises which, in turn, leads to high infant mortality
rates among the small enterprises. In view of above, there is a need for extending financial
support to entrepreneurs so that they do not suffer from shortage of funds and, in turn, do not fall
prey to sickness and ultimately closure.

Thus, the need for institutional finance for small entrepreneurs can be imbued with
multiplicity of justifications in a more orderly manner as follows:
a. Small enterprises in India are literally small in size and resources including financial
resources.

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b. Due to the lack of own funds, small entrepreneurs fall prey to local money lenders who are
generally known as exploiters by charging exorbitant high rate of interest.

c. Burden of high interest rate on borrowed capital from local money lenders, on the one hand,
and failure of entrepreneurs in repaying loans due to their weak financial position, on the other,
makes their financial position more and more vulnerable.

d. Failure in repaying loans in extreme cases leads the money lenders to usurp the assets of small
entrepreneurs.

e. Availability of funds from local money lenders is, moreover, uncertain and untimely also.

f. Small entrepreneurs need protective finance under set rules and regulations not the exploitative
finance without any prescribed rules and regulations.

Finance is one of the essential requirements of any enterprise. Small entrepreneurs, therefore,
need to know very clearly about the type and extent of their financial requirements. Integral to
financial requirements is to know about the possible alternative sources from which finance can
be availed of.

Given the shortage or lack of entrepreneurs’ own funds/resources, the Government of India, as a
part of its policy of promotion of small-scale sector in the country, has set up a host of
institutions to meet the financial requirements of small entrepreneurs.

Financial monitoring and control :-

A fine financial management structure depicts how an entrepreneurship business is doing and
why. A well-organized system for bookkeeping is critical to establish procedures to manage and
control finances. Financial management is the system to place digits to work for a successful
business. Financial management is used to formulate the decision that improves business
operations and make it more successful.

Advantages of Financial Management

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Financial management makes you a better macro manager. These are the advantages gained if
you ace financial management:
1. Turning your business with proactive management.
2. Debts for business are easily approved.
3. Quick formulation of an efficient financial plan for sharing with investors.
4. Accessibility to good tools for making critical financial decisions.
5. Investing money on fixed assets wisely.
6. Efficiently maintain inventory and accounts receivable, develop working capital for
short-terms.
7. Clear knowledge of growth orientation and setting goals for sales.
8. Improvement in margin of gross profit by effective pricing of your services and cutting
the effective costs of direct labor, supplier prices. All of these measures affect costs of
products.
9. Cutting down of administrative expenses and general costs plus a more efficient business
management.
10. Planning for taxes.
11. Planning in advance for worker settlement.
12. Executing sensitivity analysis with the diverse fiscal variables involved.

Developing a System for Financial Management

The first step is to create the financial statements. For proactive management, you need a plan in
which a monthly generation of financial statements is done. This statement needs to include:
 Income statement
 Balance sheet
 Cash flow statement
All of this information can be extracted from bookkeeping, invoices, bank statements, and
invoice receipts.

Master Financial Business Management with these 6 Tips from the Best Entrepreneurs

1. Profit Doesn’t Characterize Success

In financial management for entrepreneurs, profitability doesn’t indicate success. Rather, growth
indicates that a business is excelling and on the right path. Profit is the ultimate goal for sound
entrepreneurs but growth of the business is critical to determine how the business is doing.

2. Identify what Metrics Affect the Business

Identify the financial metrics which are universal and applicable to every business. Closely look
into your specific business and identify specific metrics that affect your particular company. The
universal metrics are revenue, operating expense, money on hand, gross margins, etc.

3. Don’t Drop Capital on Dumb Mistake

Efficient bookkeeping will help you in assessing your mistakes and where you are losing money.
Identify all of the areas where money wastage is avoidable because early profits are more worthy
in entrepreneurship.

4. Carry Out a Cost Review

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An audit of the business should be done because you cannot monitor all of your employees all of
the time. This should be done at least quarterly to have a close look on your expenses and how to
justify them. Audits also reduce the risk of fraud.

5. Make your Time Count

Entrepreneurs have to do many tasks themselves due to small budgets. They have to maintain
bookkeeping, run payrolls, etc. Entrepreneurs do things themselves to save money but, in reality,
this time should be spent in growth of their business. Use technology to save your time.
The monthly financial statement can be generated through the latest automated software package
especially designed for accounting. These are to be used with your manual bookkeeping system.
To save your time, you can also employ internal or external bookkeepers to provide you with
monthly financial statements.
6. Build a Method to Track Success with Time
Every entrepreneur must have a system to assess success over time. This system is used to
validate the financial management system and to reset goals, if needed.

People management profit and loss :-

Entrepreneurs need to properly manage profit and loss to ensure the long term sustainability of
their businesses. When sales exceed expenses, the business profits. When the opposite is true, the
company generates a loss. This calculation is straightforward enough, but managing profit and
loss is a delicate balance that requires a thorough understanding of how every element of the
business works together.

Measuring Profit and Loss

An income statement (or profit and loss statement) enables business owners to see their revenue
and expenses for a particular period of time. After you have subtracted the latter from the former,
your balance will reveal whether or not you have had a profitable fiscal year.

Looking at profit & loss patterns:

If your business is generating a loss, look back at all of your streams of revenue and expenses for
at least the past three years. This time period will give you a fuller understanding of why your
company is losing money.

 Look at expenses as a percentage of revenue (relevance)

 What has changed?
 What items, in isolation or with consideration of other expenses, is contributing to
the loss?
 What outliers (one-time expenditures or revenue streams) may be skewing your
income statement(s)?
 What type of correlation exists between your sales and expenses?
 Do your sales cover your expenses?
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  Can you cut costs to increase profits?
 Are you losing money on any products where expenses cannot be altered?
 If so, these products may need to be discontinued

Managing Loss

 If your company is not generating sufficient profit, then you need to know why:
o Look internally
 What operational behaviours are affecting profit/loss?
 Can you improve the correlation between production costs and sales?
 Pay attention to overhead costs, as they can quickly deplete profits when
not kept in check
o Consider external factors
 What economic trends are affecting your statements?
 Is the whole industry suffering?
 Are positive changes predicted to occur within the foreseeable future?
o Create a strategy that enables you to generate a profit
 Sell more products
 Cut costs
 Diversify
 Change the direction of your business

Daily operations can get in the way of recognizing the big picture. Year after year, are your
company’s profits trending upward or downward? You need to recognize this before your
enterprise begins to struggle financially. Get the operational and financial management help that
will ensure your business succeeds. Contact Hogg, Shain & Scheck for a results-oriented profit
management strategy.

Growth and development :-

Almost every executive team thinks that they are excellent at developing strategies that increase the value of the
enterprise. Taking those great ideas and implementing them “wide and deep” throughout the enterprise is what m
your organization and its people from “poised for success” to “success realized”. The systems and processes use
capture and analyze feedback from Customers and Employees. We’ll develop and design a customized survey or
for your organization. Whether you are collecting feedback from employees or customers, we’ll have a system fo
Simul knows the difference between employee satisfaction and organization culture surveys. We’ll deliver what y
need to move your organization forward.Diagnostics are an important part for helping individuals, teams and the
organization, for that matter, to assess “what is”. By doing so, participants can use their experience, energy and
enthusiasm in a focused manner that will help them achieve the results that they desire.DiagnosticsWe have a

number of proprietary and other licensed tools covering: empowerment, leadership style, management

competencies, collaboration (conflict) management, group styles, thinking styles, customer satisfaction &

service quality orientation, employee satisfaction, people styles at work, and power. Contact us for specific
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programs.Surveys and Polls

We have a list of surveys and polls that address: Employee Satisfaction, Customer Satisfaction, Change

Readiness, Leadership Effectiveness, Managerial Competencies and Organizational Cultures. Paper based or

on-line or a combination, it is your choice.

Customer Focus Groups

There is no business without our customers. That is why it is necessary to get their feedback, opinions,

comments; it is this information that will help drive a new product line, service improvements, and build strong
relationships with your Customers. Our services continue beyond the data collection/information

retrieval stage. Our Simul team will work closely with you to debrief the information gathered and

translate the feedback into effective recommendations and actions plans that can be implemented by your

company. Sample Clients include: AMJ Campbell, Toronto Hydro, Sunoco, Yamaha Music.

Employee Focus Groups

Every company that conducts employee focus groups acquaints itself with their employees’ thoughts,

ideas, and complaints which have a direct and observable impact on their behaviour and productivity.

The Simul team will facilitate the development, analysis and reporting of important feedback. From our

Focus groups you will be able to assess how people communicate and work together in your company.

Our focus groups typically cover such items as:

 How the company communicates information to the employees.

 The quality of the information received.
 Employee communication with the boss, managers and supervisors.
 The nature of communication in various work groups, as well as work groups with different

departments.

 The effectiveness of the work groups, and the mechanisms the company is using to improve quality.

Or the focus group can be geared to explore particular issues, problems, strategies that you have

identified as important to you, your Company, Customers or Employees.

Customer Satisfaction and Loyalty Benchmarking SurveysLoyal customers contribute as much as 61% more at
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 a 20% higher margin than vulnerable customers. Conducting a benchmark of customer satisfaction or loyalty
can provide you with a measure as to how loyal your customers really are. You will be able to obtain answers
to such questions as:
 “Are your Customers totally satisfied with your products and/or services?”
 “Are your Customer totally satisfied with the quality of product you provide?”
 “Are your Customers totally satisfied with the quality of service they are receiving?
 “Would they do business with you again?”

 “Would they recommend your company/product/service to others?”

He has the resources and expertise to conducts surveys that provide “feedback that inspires action”. You’ll

appreciate our ability to go beyond the numbers to provide you with valuable insight that you can actually use.

Problems faced :-

The following lists the “Top 10” challenges faced by entrepreneurs today, defines why each
problem exists, and offers solutions so you can operate an efficient and successful business.

1. Cash flow management :-

The challenge: Cash flow is essential to small business survival, yet many entrepreneurs struggle
to pay the bills (let alone themselves) while they’re waiting for checks to arrive. Part of the
problem stems from delayed invoicing, which is common in the entrepreneurial world. You

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perform a job, send an invoice, then get paid (hopefully) 30 days later. In the meantime, you
have to pay everything from your employees or contractors to your mortgage to your grocery
bill. Waiting to get paid can make it difficult to get by — and when a customer doesn’t pay, you
can risk everything.

The solution: Proper budgeting and planning are critical to maintaining cash flow, but even these
won’t always save you from stressing over bills. One way to improve cash flow is to require a
down payment for your products and services. Your down payment should cover all expenses
associated with a given project or sale as well as some profit for you. By requiring a down
payment, you can at least rest assured you won’t be left paying others’ bills; by padding the
down payment with some profit, you can pay your own.

Another strategy for improving cash flow is to require faster invoice payments. Invoice clients
within 15 days, which is half the typical invoice period. This means if a customer is late with
a payment, you have two weeks to address it and get paid before the next month’s bills are due.
In addition, more and more companies are requiring immediate payment upon project
completion — and in our digital age when customers can pay invoices right from their mobile
phones, it’s not a stretch to request immediate payment.

You can also address cash flow management from the other side of the equation by asking your
own vendors to invoice you at 45, 60 or even 90 days to allow ample time for your payments to
arrive and checks to clear. If you can establish a good relationship with vendors and are a good
customer, they’ll be willing to work with you once you explain your strategy.

And if you’re looking for an easier way to pay bills and save money, consider sending checks via
email.

2. Hiring employees :-

The challenge: Do you know who dreads job interviews the most? It’s not prospective candidates
— it’s entrepreneurs. The hiring process can take several days of your time: reviewing resumes,
sitting through interviews, sifting through so many unqualified candidates to find the diamonds
in the rough. Then, you only hope you can offer an attractive package to get the best people on
board and retain them.

The solution: Be exclusive. Far too many help wanted ads are incredibly vague in terms of what
qualifications candidates must have, what the job duties are, what days and hours will be worked,
and what wages and benefits will be paid. You can save yourself a ton of time by pre-qualifying
candidates through exclusive help wanted ads that are ultra-specific in what it takes to be hired at
your firm, as well as what the day-to-day work entails. Approach your employee hunt the same
way you would approach a customer-centric marketing campaign: through excellent targeting.

Once you have a pool of prospects, arrange for a “walking interview” in which you take
candidates on a tour of their working environments. Ask questions relevant to the job and to
candidates’ experiences, expectations, dedication, and long-term goals. Don’t act like an overlord

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determining which minion gets to live another day; rather, behave as though you’re seeking a
partner to help you operate and grow your business.

Take the time to seek real references: not the neighbor lady your candidates grew up with, but
people who can honestly attest to their work ethic and potential. Once you’ve picked a candidate
and before you’ve made a job offer, ask them specifically what it will take to keep them
employed with you for the long haul. Tell them to be honest with their expectations. Provided
they do a good job for you, you’ll know what kind of rewards they’re seeking, and you can make
adjustments accordingly: Do they want more vacation? The opportunity for advancement? More
pay? Freedom from micromanagement?

This isn’t to say you have to bend backwards for your employees; however, it stands to reason
that if you make expectations clear for both parties you can lay the foundation for a long-term,
mutually-rewarding client-boss relationship.

3. Time management :-

The challenge: Time management might be the biggest problem faced by entrepreneurs, who
wear many (and all) hats. If you only had more time, you could accomplish so much more!

The solution: Make time. Like money, it doesn’t grow on trees, of course, so you have to be
smart about how you’re spending it. Here’s how:

 Create goal lists: You should have a list of lifetime goals, broken down into annual goals,
broken down into monthly goals, then broken down into weekly goals. Your weekly
goals, then will be broken down into specific tasks by day. In this manner, what is on
your task list in any given day is all you need to do to stay on track with your lifetime
goals
 If any tasks do not mesh with your goals, eliminate them
 If any tasks do not absolutely have to be completed by you, delegate them
 Consistently ask yourself: “Is what I’m doing right now the absolute best use of my
time?”

4. Delegating tasks :-

The challenge: You know you need to delegate or outsource tasks, but it seems every time you do
something gets messed up and you have to redo it anyway.

The solution: Find good employees (see above) and good outsourced contract help, for starters.
You might have to pay a little more for it, but the savings in time (and the resulting earning
potential) more than make up for it.

Next, be ultra-specific as to what you want done. It will take a little more time at first, but write
down detailed steps listing exactly what you want your help to do. Don’t make assumptions, and
don’t assume your help will be able to think for themselves (they can, but they will complete the
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job verbatim because that’s what they’re trained to do). So, don’t say “list stats in a spreadsheet”
when you can say “alphabetically list XYZ in the right spreadsheet column, then list statistic A in
the next column.” It might seem like overkill, but take the time to be specific once, and your help
will get it right every time thereafter.

5. Choosing what to sell :-

The challenge: You know you could make a mint if you just knew what products and services to
sell. You’re just unsure how to pick a niche.

The solution: Admit that you’re weak in identifying prosperous niches, and delegate the task to
someone who is strong in this area. You don’t have to hire a huge, expensive marketing firm;
rather, recruit a freelance researcher who has experience in whatever type of field you’re
considering entering (retail e-commerce, service industry, publishing, etc.). Have them conduct
market research and create a report with suggested niches, backed by potential profit margins and
a complete SWOT analysis: Strengths, Weaknesses, Opportunities and Threats.

This isn’t to say you should have someone else decide for you; however, if you’re not good at
identifying niches it’s a good idea to have someone who is make suggestions. You can then
analyze the suggestions for yourself to determine if you agree. Taking this step now can save you
a lot of time, money and hassles later — and it can save your entire business and livelihood.

6. Marketing strategy :-

The challenge: You don’t know the best way to market your products and services: print, online,
mobile, advertising, etc. You want to maximize your return on investment with efficient, targeted
marketing that gets results.

The solution: Again, if you’re not adept at creating marketing plans and placing ads, it’s a good
idea to outsource your marketing strategy to someone who is. At this point, all you need is a core
marketing plan: what marketing activities will you undertake to motivate purchases? Give your
planner a budget and tell them to craft a plan that efficiently uses that budget to produce profits.

This is not the time for experimentation. You can do that later, on your own or with the advice of
your marketing strategist, after you’ve established a baseline that works.

7. Capital :-

The challenge: You want to start or grow your business, but you have little capital to do it with.

The solution: There are many ways to earn funding, from traditional bank loans to family and
friends to Kick starter campaigns. You can choose these routes, certainly, but I prefer the self-
fueled growth model in which you fund your own business endeavors.

Instead of trying to launch a multi-million dollar corporation overnight, focus on your initial core
customers. Continually work to find new customers, of course, but consistently strive to be
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remarkable to those customers you already serve. Word-of-mouth will spread, and more
customers will come looking for you. As they do, develop systems and business processes that
allow you to delegate tasks without sacrificing quality. Your business will grow slow and steady,
and you’ll be able to solve problems while they’re small.

Think about where you want to be five years from now. Can you get there without help, even if
you have to delay growth a bit while you’re doing it? This is the best strategy to adopt for small
business entrepreneurs. If you do feel you need funding, however, be sure to consult an attorney
to make sure you’re not giving up too much of your business to get it.

8. Strapped budget :-

The challenge: Even though cash flow is fine, it seems you never have enough in your budget to
market your company to its full potential.

The solution: Unless you’re one of the Fortune 500 (and even if you are), every entrepreneur
struggles with their budget. The key is to prioritize your marketing efforts with efficiency in
mind — spend your money where it works — and reserve the rest for operating expenses and
experimenting with other marketing methods.

Keep a close eye on your money, too: chances are, there are areas you can skim to free up more
funds. Unless an expense is absolutely critical to your business and/or represents an investment
with an expected return, cut it. In fact, do this exercise: See how lean you can run your business.
You don’t have to actually do it, but cut everything you can and see if you still feel you can run
your business (save for what you have to delegate and market with). Somewhere in between your
leanest figure and your current budget is a sweet spot that will allow you to be just as effective
and leave funds leftover to fuel growth.

9. Business growth :-

The challenge: We’re assuming you are growing, not that you can’t grow, and you’ve come to
the point at which you can’t take on any more work in your current structure.

The solution: Create new processes that focus on task delegation. Many entrepreneurs, used to
wearing all the hats, find themselves in this position once they’ve achieved a modicum of
success. Because you’re doing everything, your growth halts to a stop when it hits a self-imposed
ceiling. The only way to break through is to delegate tasks to others to take yourself out of the
production end, and segue into management and, finally, pure ownership.

10. Self-doubt :-

The challenge: An entrepreneur’s life is not enviable, at least in the beginning. It’s extremely
easy to get discouraged when something goes wrong or when you’re not growing as fast as you’d
like. Self-doubt creeps in, and you feel like giving up.

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The solution: Being able to overcome self-doubt is a necessary trait for entrepreneurs. Having a
good support system will help: family and friends who know your goals and support your plight,
as well as an advisory board of other entrepreneurs who can objectively opine as to the direction
of your business.

One of the best ways to deal with self-doubt is to work on your goals and tasks lists. When
you’re down and lack motivation, look at your lists and know that the tasks you do today are
contributing to your lifetime goals. By doing them, you’re one step closer, and you can rest
assured that you are, indeed, on the path to business success.

Entrepreneurs face many challenges, and volumes have been written about how to overcome
them. Perseverance and intelligence are your allies; use them to your advantage to keep working
toward your goals. Understand that you’re not the first to struggle. Because of that, there are
many resources available to help you get through your darkest days as an entrepreneur, so you
can reap the immeasurable rewards that come with building your own successful business.

Family support and opposition :-

Building Your Entrepreneurship everywhere is the necessity of all nations. There is recognition
of the fact that the soft power of the future is in the country’s youth and moulding them is
important to ensure overall progress of the society. Youth unemployment and absence of Your
Entrepreneurship developmental programs creates not only economic problems in the society but
leads to several social problems too.
Understanding the background and the Your Entrepreneurship culture in any society is a very
complex subject. Lot of research has gone into studying the influence of cultural attitudes of a
community, a society or an ethnic group and the national political as well as economic
environment and their mutual interactions affecting the attitude of the youth towards Youth
Entrepreneurship.
The study of growth potential of Your Entrepreneurship with reference to the environment in the
society alone does not give a complete picture. It is important to understand in detail about the
issues, approaches, barriers and factors affecting or inhibiting Youth Entrepreneurship in the
country, for any initiative to develop Your Entrepreneurship would start by removing the barriers
to growth of Your Entrepreneurship.
One of the significant studies on Youth Entrepreneurship and the influence of culture at the
workplace and development of values among the Youth has been put forth by Hofstede. He has
proposed a four point model that influences the Youth Entrepreneurship in the local work
environment. As per him the cultural elements of ‘Uncertainty Avoidance’, ‘Individualism’,
‘Masculinity’ and ‘Power Distance’ influence the attitude and thinking of the Youth with
reference to their personal goals and careers. It is seen that the youth’s behaviour and thinking
pattern is shaped by these four factors. An individual’s attitude and approach towards
achievement and pursuit of his goals and what he wants to be in life, risk taking ability and
approach, as well as the acceptance of personal, family and social duties are shaped in
accordance with his understanding and reactions to these four factors. In societies which are
accepting uncertainties, the youth are more likely to be more risk taking and trying their hands at
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entrepreneurship and aim for higher achievement. History shows that American society is more
open to risk taking and accepting un certainties as compared to Europeans who are averse to
taking risks and facing uncertainties. They would prefer to have a stable and steady job than try
their hand at new ventures. It is said that Americans are afraid of failure and the culture is such
that they are not likely to accept failure at any cost and will do anything to make their ventures a
success. A good example of power distance or hierarchies is evident amongst the Japanese, for it
is embedded in all aspects of their culture. In communistic countries the approach to
entrepreneurship is a lot different compared to other cultures. The societies have grown with the
belief in the State providing for their welfare and such attitude can inhibit a aggressive
entrepreneurial drive.
The individual’s perception of what his family and friends think or opine about entrepreneurship
has a crucial role to play in his views. Besides, the view of the family, their support and the
society with regard to failure is also a very important factor playing upon the young minds and
framing their opinion. Family’s support is very essential because in most cases the Youth would
need to borrow initial finances from the family and friends. The family’s attitude towards
education and other careers in fields like medicine, engineering etc are also likely to dominate
the Youth’s mindset towards entrepreneurship. It is quite likely that the families will be ready to
take loan and fund the youth’s professional education rather than funding for a new business
venture where risk is involved.
Surprising but true is the fact that the society’s views about business entrepreneurs as prospective
bridge groom can also become a deciding factor promoting or inhibiting Your Entrepreneurship.
In some societies people prefer to marry their daughters to persons holding Government jobs
thinking that the jobs are secured and permanent as compared to a self employed individual.
Normally professionals like lawyers, doctors and scientists are seen to be the most preferred as
bridegrooms. Parents of eligible girls are likely to associate self employed youth with certain
values like corruption, straight forwardness, hon
esty etc. These are but purely individualistic opinions but they are still relevant in terms of
shaping the Your Entrepreneurship in the society.

Future plans :-

A business plan is an essential business document that is fundamental to the success of any
business. Business plans are stand-alone documents that provide a reader with an in-depth
description of your business, its objectives, strategies, target markets and realistic financial
forecasts.

Business Plan Structure :-

Summary
Provide a focused and brief summary, no longer than one or two pages in length. A summary will
give the reader a first impression of whether they should continue to read on.

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 Company Description — Business Type, Goals and Objectives
Describe the type of business that you’re in, the product and services you provide, the market
that you will target and market competitors. Also include your company history, current business
conditions, industry trends and your goals and objectives.

Market & Marketing Strategy

This is one of the most important sections of your business plan and is one that will be examined
closely.

Potential market
Give a broad overview of your potential customers. Describe their characteristics such as their
demographics, buying habits, interests and needs. Also, explain how you conducted any market
research.

Sales
In this section include your sales forecast. What revenue do you expect to achieve in the next
three years? Are there any other unique considerations you should include? Since the cost of
sales is usually a company’s largest expenditure, it’s important to forecast it realistically.

Competitive analysis
Here you will need to consider your competitors, both direct and indirect. Direct competitors are
those who offer the same product or service to the same market, while indirect competitors offer
similar products or services, but to a different market. In both cases, what approach do your
competitors take to marketing their products and what makes people buy
their products. Determine their strengths and weaknesses and their position in the marketplace.
Anyone who reads your business plan may sense danger if you suggest there is no competition
for a product or service.

Market Feasibility
Include industry trends, economic analysis and optimistic-pessimistic-realistic scenarios. Also,
include any anticipated impact that legislation and regulations may have on the market.

Marketing Strategy
Explain how you will sell your product or service and how you will move into new markets.
Identify the specific marketing techniques you plan to use.

 How will you identify, contact and sell to potential customers?

 How will you distribute your product/service?
 How will you price your product/ service? Consider materials and supplies, labour and
operating expenses, planned profit and competition when determining your pricing. Include your
price list in the plan.
 When do you plan to introduce your product/service?
 Present your promotional plan, including your budget. Make sure you describe your
marketing mix and include any product literature or marketing brochures in your appendix.

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 Products or Services
Describe your product or service. Explain any niche you may have. Discuss your competitive
advantage — why people will choose your product over your competitors’, the benefits of your
product or service and how you will sustain your edge.

Management Organisation
Describe your business structure, including details of your management team and their
responsibilities, qualifications and experience. Also, describe the legal structure of your business.

Business Operations
Describe how you plan to operate your business. Go into detail about location, facilities,
equipment, raw materials and suppliers, workforce, hours of operation and methods of record
keeping.

Financial Projections
These projections serve to demonstrate not only the need for funds but also the potential future
value of equity investments or debt repayment. Developing proper financial projections and cash
flow is, therefore, a critical factor in obtaining capital for your business. It may be the most
crucial task in determining the viability of your business. You will need to:

 Establish the need for funds in the amount requested

 Demonstrate your ability to realise investments or repay loans
 Indicate your understanding of the financial implications of your business’s growth plans
 Your forecast should cover a minimum of three years — a period in which realistic
assumptions can be made without much speculation. Your forecast should be broken out
monthly, at least until you achieve positive cash flow. This is important because an overall
annual cash flow total could hide some cyclical problems that you have and should provide for in
your financial plan

Be sure to include:

 Operating Profit and Loss Projections: Project revenues and expenses out on a month-
to-month basis for the first year and on a yearly basis for the next three years of operation.
 Cash Flow Projections: Project all cash receipts and outgoings on a month-to-month
basis for each of the next three years. Cash flow analysis is critical to any capital investment and
the overall survival of the enterprise.
 Balance Sheets: Project your assets, liabilities and retained earnings at the end of the
first, second and third years. Because your balance sheet performance has an impact on your
cash flow (current assets and current liabilities), it will be a key concern to potential investors.
Financing Plans
If you are looking for funds, you’ll need to include this section. Based on your financial forecast,
determine how much money you require, when you need the money, how you will use the money
and how you will pay it back.

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 Future Plans
An important point to remember is that you must show that you have the potential for continued
profitability. Be sure to include:

Start-up Plan: Present the tasks involved, their priorities, how long each task will take and who
is responsible for each task.
Three Year Plan: Project how your business will compete in years three to five. Much of this
work is done in the financial forecast, but you will want to support it with a clear explanation.
Other Sections
 Table of Contents — Make sure you include a table of contents in your business plan,
especially if its length exceeds more than ten pages. It should appear after your summary but
before your company description.
 Addendum of Supporting Documents — There are some documents that don’t warrant
inclusion in the body of the plan, but are important enough to offer as support. These can
include; Letters of reference, Legal documents of the business including articles
of memorandum, Titles, insurance policies, partnership agreements, patents, marketing
documents.

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