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Entrepreneurship Course

EMBA Batch

April 2013 Session 8

The Program
Session Topic 1

Introduction

Entrepreneurship

The Entrepreneur

Business Planning

Curriculum Welcome the students Explain course and schedule The Contract Students expectation of the course Interaction I the Business Case Study #1 Interaction The Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship Presentation Entrepreneurship Process Presentation Leadership and Entrepreneurship explained Interaction I the Business Case Study #2 Discussion Doing Business in India and China Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make Interaction I the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur Discussion Guan Xi and networking Discussion Business entertainment Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints Interaction I the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)

Date

9th April 7.00 pm to 8.15pm

9th April 9.00 pm to 10.15 pm

10th April 7.00 pm to 8.15 pm

10th April 9.00 pm to 10.15 pm

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Site Visit at Dignity Kitchen

11th April 6.00 pm to 8.30 pm

The Program
Session Topic Curriculum Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 Interaction I the Business Case Study #5 Discussion - My Business Values Presentation Business structures & its incorporation Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business Interaction I the Business Case Study #6 Discussion Learning from the $100 Experience Presentation Death of a business Presentation Why business failed Presentation Element of Success in Business Discussion Bad Business Practice I the Business Individual Assessment The $100 Experience Business Plan Presentation Course Review Result of your Assessment Review of The Contract Date

Getting Started in Business

13th April
2.00 pm to 3.15pm

Doing Business

13th April
4.00 pm to 5.15 pm

Success in Business

13th April
6.00 pm to 7.15 pm

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Assessment Assessment

14th April
10.00 am to 11.15 am

14th April
12.00 pm to 1.15 pm

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Conclusion

14th April
2.00 pm to 3.15 pm

Session 8 Doing Business


Presentation

Business structures & its Processes and System Maintaining a business Growth of a Business
Interaction I the Business Discussion Learning

incorporation

Case Study #6

from the $100 Experience Background Reading Questions and Answers

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Business Structure and Incorporation

Presentation
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Type of Commerce
Structure & Incorporation
Offshore and Local Registration

Sole Proprietor

Private Limited

Partnership

Limited Liabilities Partnership

Shareholding %age Roles & Responsibilities Investment Office Director and Shareholder

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Type of Commerce
For-profit:
A for-profit or commercial venture is created and remains viable due to the desire to sell something for a profit. This product may be a good or a service

Large scale and small scale.


Entrepreneurial activity may take place within a large company or within the home, school, church or local community organization.

Non-profit:
A non-profit venture is created and remains viable as a result of a desire to improve the quality of life for a group. A person founding a non-profit may be considered a social entrepreneur, since he or she is motivated by the desire to have an impact on society instead of earning money. Non-profits often dedicate themselves to social issues such as environmental concerns, animal rights, unemployment, health care, and advocacy for underserved groups such as senior citizens and women.

Service provision and goods production.


Entrepreneurs can be at work providing a service such as delivering food, mowing lawns,developing a technology or they can be at work producing and selling a product such as hockey sticks, software, tires, or advertising brochures.

Local/national/international.
Activity can take place at home, in school, in the state or internationally.

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Type of Structure
Sole Proprietorships

A sole-proprietorship is a business firm with only one owner. It is the simplest and most flexible business structure.
Partnerships A partnership is a business firm owned by more than one individual or company. Limited Liability Partnerships (LLPs) LLPs combine the limited liability features of companies with the operational flexibility of partnerships.

Companies
A company is a business entity. Most companies in Singapore are private companies limited by shares Pte Ltd.

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Incorporation
Exemptions From Registration
All businesses must register with the Accounting & Corporate Regulatory Authority (ACRA). Individuals licensed hawkers domestic craftsmen taxi drivers trishaw riders sampan men farmers private fish and prawn pond keepers Professionals Who Are Exempted Professionals such as lawyers, doctors and accountants do not need to register with ACRA as they are managed by their respective professional bodies. Organizations Who Are Exempted Organizations such as statutory boards, societies, mutual benefits co-operatives and charitable institutions that are set up by law also need not register.

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Incorporation
Sole-Proprietors, Partnerships and Limited Liability Partnerships
Almost anyone or any company can register except un discharged bankrupts may not be allowed to register such entities in Singapore.
You must appoint a local manager if none of the owners registering is ordinarily resident in Singapore. For LLPs, a local manager must be appointed in all cases.

A person is not "ordinarily resident" if he/she: - does not have a local address; and - cannot legally remain in Singapore for a long period of time.
The local manager must be above 21 years old and be one of the following:

- a Singapore Citizen - a Singapore Permanent Resident - an Employment Pass holder - an Approval-in-Principal Employment Pass holder - a Dependant Pass holder
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Incorporation
Companies
Almost anyone or any company can incorporate a company. However, there must be at least one director of the company who is above 21 and be one of the following:

- a Singapore Citizen - a Singapore Permanent Resident - an Employment Pass holder - an Approval-in-Principal Employment Pass holder - a Dependant Pass holder Directors cannot be bankrupts or persons convicted of dishonesty.
There must be at least one shareholder and one director. They can be the same person. However, most companies opt to have at least 2 directors as banks and other financial institutions usually require 2 signatories

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Incorporation
Check Availability Of Business Name You will need to decide on a name for your business and then make sure no one else has taken it. Choose A Place Of Business When registering your business, you will be asked to provide a local address for your place of business. Premises must be approved for business use by the Urban Redevelopment Authority (URA). P.O. Boxes cannot be used as a registered business address. Residential flats or properties can only be used under the Home Office Scheme (HO) Obtain Licenses & Permits Certain types of businesses such as private schools, childcare centers and video companies require licenses and permits Top-Up Your Medisave For a sole-proprietorship, partnership or an LLP, ensure that your Medisave contributions are up-to-date with the Central Provident Fund Board (CPF Board).

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Incorporation
Rules For Business Firms

Business firms are sole-proprietorships and partnerships.


1. Business must be carried out under the registered business name. You cannot use any other name.

2.

Print your registration number on all letterheads, invoices, bills or other documents used for the purposes of the business.
Renew your business registration on time Notify ACRA immediately if there is a change of business particulars, such as a change of address, business activity or partners. Notify ACRA the moment you decide to end your business Keep your Medisave contributions up-to-date
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3. 4.

5. 6.

Incorporation
Rules For Business Firms Rules Specifically For Limited Liability Partnerships
1. The manager must make an Annual Declaration to ACRA stating whether the business is able or unable to pay its debts as it becomes due in the normal course of business. The first Annual Declaration must be made within 15 months of the date of registration.

2.

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Incorporation
Rules For Business Firms Rules For Companies
1. Appoint a company secretary within six months of incorporation. If the company only has one director, he/she cannot be the company secretary. Your registered office must be open and accessible to the public for not less than three hours between 9am and 5pm on weekdays. Print your company registration number on all letterheads, invoices, statements of accounts, official notices and publications. Notify ACRA within the prescribed time if there is a change of company particulars, such as a change of address, business activity or directors. The first Annual General Meeting (AGM) of your company must be held within 18 months of the date of incorporation. You must appoint an auditor within three months of the date of incorporation. Your annual accounts must be audited and filed with ACRA within one month of the AGM. Companies with less than 20 individual shareholders (Exempt Private Companies) do not need to appoint an auditor, audit their accounts or file them with ACRA if their revenue is less than S$5 million for the financial year.

http://www.acra.gov.sg/

2.

3.

4.

5. 6.

7.

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Maintaining a business

Presentation
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Business is like a Car


The Driver?
Roadmap = Business Plan
Engine= Production

Co-driver

Driver

Passenger= worker

Fuel = money Store

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Maintaining a Business
Money Financial Management and Control People Human Resource Management People Development Process Quality Product Service Excellence Product / Service Innovate / Innovate / Innovate Continual improvement Legislature Understand and Comply

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Business The Way Ahead


Stability Generic Growth Vertical Related

Diversification
Business The Way Ahead Growth Horizontal

Non Related Related

Merger Alliance Turnaround

Non Related

Retrenchment

Divestment Liquidation

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Business The Way Ahead

No. of Transactions per period of time

Resources Availability

Returns

Opportunities

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Systems and Processes

Presentation
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Employee Ownership

Human Resource

APPROACH

Manufacturing

Financial & Accounting

Mission

Objectives Strategy

TO STRATEGIC

Strategic Alignment
Purchasing Warehousing & Logistics Management Information

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PLANNING

Management Commitment

Management System Certification


Quality ISO 9000 harmonised methodology for building, sustaining and improving quality performances Environmental ISO 14000 a system of management to achieve sustainable business development through continuous improvement in environmental performance

Health & Safety OHSAS 18000 helps organisations establish and maintain a system of management to improve the welfare, health and safety of employees at the workplace.
Food ISO 22000 / HACCP food safety management systems standard based on the principles of ISO 9001. Information Security BS7799 provides a code of practice for the implementation of security controls to protect information within both commercial organisations and government departments
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What is ISO 9000?

An internationally recognised standard A model to help develop a quality system A means of demonstrating quality assurance

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Brief History of ISO

BS5750 (1979) outside the defence industry ISO 9000 (1987) international perspective ISO 9000 (1994) Accommodate service-oriented industry ISO 9000 (2000) Wider aspect of business

ISO 9000 (2008)


Compatibility with other management system
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ISO 9000 CONCEPT


Control Elements

Supplier

Customer

ORGANISATION
Data Raw Material Quality Service/P roduct Control Elements
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ISO 9001:2008
Integrates 8 quality management principles: Customer focus Leadership People involvement

Process approach
Systems approach to management Factual basis to decision making

Continual improvement
Supplier partnerships
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ISO 9001 - Process Approach


Procedure Specification Training Objective

CONTROLS

INPUTS

PROCESS

OUTPUTS

Materials Information

RESOURCES

Equipment People
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Integrated Process

MANAGEMENT RESPONSIBILITY C U S RESOURCE MANAGEMENT PROCESS MANAGEMENT


INPUT PROCESS OUTPUT

C U S

T
O
A P D

T
O
C

E
R

MEASUREMENT, ANALYSIS, IMPROVEMENT


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E
R
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Process Management
Inputs

Major Process

Outputs

Sub Process

Sub Process

Sub Process

Sub Process

Activity Activity Activity

Activity

Activity

Task

Task

Task

Task
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Growth of a Business

Presentation
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The Stages of Growth


Phase 1 Entrepreneurial Structure Informal Phase 2 Direction Functional Centralised Hierarchical Top down Phase 3 Delegation Decentralised Bottom-up Phase 4 Co-ordination Staff functions Introduced SBUs Decentralised Units merged into product groups Formal planning Procedures Investment centres Tight expenditure controls Watchdog Phase 5 Collaboration Matrix type structure

Systems

Immediate Standards response to Cost centres customer feedback Budget Salary systems

Profit centres bonuses Management by exception

Simplified & integrated information systems

Style/People

Individualistic Creative Entrepreneurial Ownership

Strongly directive Impersonal

Full delegation & autonomy

Team-orientated Interpersonal skills at a premium Innovative Educational bias

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The Stages of Growth


Phase 1 Phase 2 Entrepreneurial Direction Strengths Fun Efficient Market Response Phase 3 Delegation Phase 4 Phase 5 Co-ordination Collaboration

High More efficient Greater management allocation of spontaneity motivation corporate & Flexible & local resources behavioural approach

Weaknesses

Founder often temperamentally unsuited to managing Boss overloaded

Unsuited Diversity Cumbersome Hierarchy Doesn't grow people

Top managers Bureaucratic Psychological lose control as divisions saturation freedom breedsbetween parochial line/staff, attitudes headquarters/ field etc.

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Assignment I the Investor - Part 1

Part 1 Submission 1 A4 sheet Invest or Not? Why did you invest?

Do not open the newspaper prior to submission


Submit hard copy and soft copy to Administrator Session 6 Thursday Midnight latest Late submission will not be entertained
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Assignment I the Investor - Part 2

Open the newspaper upon submission

Submit hard copy and soft copy to Administrator : Part 2 on Session 9 Saturday Midnight latest Late submission will not be entertained

Part 2 Submission Analysis of your investment decision No limit to the number of pages

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Anu Barber Shop

Case Study #6
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Interaction: I the Business


Ex-prisoner (drug offence) looking for $10,000 funding to start up a barber shop
Scenario:
Anu has been convicted for drug abuses for five times and served over 15 years in Changi Prison and in drug rehabilitation centre.
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In his last prison stint, he learn a barber trade and wanted to start up a barber shop when he is discharged. In his business plan presentation to a group of investors, the concern were whether he will return to drug abuse again and in his barber shop business will he push drugs to young children who come to have their hair cut.

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Anu Barber Shop


Recently released from prison, for possession of illegal drugs

Under Drug Rehabilitation Program for Business Startup he presented

his plan to start up a small business Intend to open a barber shop catering to young adults and children The renovation will be trendy and modern Pricing will be competitive
3 years to 12 years = $8.00 13 years old and above = $10.00

Investor will be entitle to 50% of the business with a guarantee return

of 3% per annual. Funding requirement of S$20,000 of which $10,000 from own savings.

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I the Business

Assessment
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I the Business
Preparation / Conceptualization One minute Presentation Questions and Answers Score
Content Clarity of thought & expression Handling of Q & A

10%

When ?
Purpose : To build confidence To think on the spot To verbalize ideas and opportunities

Topic ? Where ?
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I the Business
Individual Assessment Held on Session 10 Conceptualize a business idea and Sell in ONE MINUTE Assessment will held at: Car Park Canteen Garden Elevator Board Room

SIX Business Ideas ????

YOU HAVE ONLY ONE CHANCE


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I the Business
Roll No Mariane Time (hrs) 1000 Location Elevator

Carlos
Piyush Prabhu Sudipto Kiran Swapnil Amresh Laxman Naveen

1010
1015 1020 1030 1035 1045 1055 1100 1105

Roundabout
Roundabout Garden Roundabout Roundabout Elevator Canteen Canteen Garden

Karthik
Sarathbabu Kumar Katra Priyajit

1110
1115 1125 1135
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Roundabout
Elevator Roundabout Garden
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The S$100 Experience Presentation

Presentation 5 minutes formal presentation on a powerpoint which include Ideas & the opportunities Your business concept Financial and earning Nominated charity
5 minutes individual sharing of the $100 Experience Starts at 1200 hrs
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Questions & Answers

My email address: chrisben@singnet.com.sg

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