Professional Documents
Culture Documents
Step 1
Identification of needs and wants of consumers
Environmental Assessment:
Population structure, income, trends and preferences,
Import and export data,
Local resources and technology,
Industrial linkages,
Development plans by government and private sectors,
Analysis of social problems,
Study of government’s regulations.
Step 2 (cont.)
Self Assessment:
Experience -
Knowledge and Skills
Capital
Interest
Networking
Community:
Values, Norms, Perceptions
Step 3
Evaluation of business opportunities
Legal aspects
Degree of competition
Capital requirements
Risks involved
TYPES OF RISKS
BUSINESS RISKS
Risks that can be controlled – productivity & quality
Risks that cannot be controlled – natural disasters
Risks that can be transferred – through insurance
FINANCIAL RISKS
Liquidity level – ability to pay short term debts
Loans- commit to liabilities
Credit – non-collectable debts
Step 4
Selection of business opportunities and
preparation of business plan
Organization plan
Marketing plan
Production/operations plan
Financial plan