Entrepreneur Ing Karachi Vers11
Transcript of Entrepreneur Ing Karachi Vers11
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Entrepreneurship
Prof. Dr. Dietger MainzSeite # 14.03.2012
ISeminar for
IncomingEntrepreneurs
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The new Idea
Market
The
economic
concept
Liquidity +
financial.
situation
The
functional
and legal
organi-
zation.
1
The personality
of the
entrepreneuer Equilibrium
Business plan (bp)
Realitybp is the bridge to reality
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Entrepreneurship
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Entrepreneur
/ Founder
Banker /
Venture Capitalist /
Investors
Business plan
as an importantlink
Idea
Impression
of the entrepreneur /
founder
Personality
Experience
Motivation
Personality
Experience
Motivation
Plausibility
bp is the bridge to your
supporters
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Entrepreneurship
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The business model describes the structure of your business idea this is the first check of your chances and risks as an entrepreneurand a precondition for your business plan
(In Anlehnung an: Osterwlder+Pigneur, Business Model Generation. 2011)
Management + Organisation ?
Customer relations ?
Channels ?
CustomerSegments ?
Key activities ?
Key ressources ?
Key Partner ?
Cost structure + stream ? Revenue structure + stream ?
Value Proposition
Strategic Customer
Product- u. service-features
Stakeholder (=>Shareholder)
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time
Predecision
phase
Venture preparationsphase
Startphase
Businessmodell
Business plan
StartphaseControlling Venture concept
Draft of Contracts
Startnegotiation
Equity mobilisation
-
Plan-Development
Development in reality
Venture consulting ?!
Decision
for the venture Start of the
venture
+
-
Legal
declarations /
permission/
Approbation
precondition
precondition
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Entrepreneurship
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Business plan
The personality of the entrepreneur
(Psychological, social, cognitiveattitudes, experiences and abilities)
The two basic factors of success: the personality and the business plan without any
compensation between them!
Retention, strong goal orientation,
creativity, risk taking (Risk = challenge not
a game), organisational skills, optimistic disposition,
leadership orientation an overall responsibility,
ability to communicate and motivate in all situation?
+
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Is the central tool to convict and
to answer our
Partner
Bank, Investor,
Supplier,
Customer etc.
Is it affordable and successful to
support this venture=> What risk we have to take?
Should we go ahead with the
entrepreneur?
Is there a prosperous perspective
Business plan=road map to success or to stop
The function of the business plan
Last checkthe point of no return
=> Can we realise our idea with acceptable risk?
=> How we have to act, to be successful?
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Business Plan
- Ducoment -
Executive summary
Verbale Describtion
und AnalysisPersonality of the founder
product- /service features
market analysis
marketing plan
Venture accountingA record over the
time of the development
about the financability
, profitability, liquidity
under the condition of
the sales, production,
investment, employment plans
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Entrepreneurship
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It is necessary to understand that our venture / company can only appropriate be
analysed as a network of multiple linked and dependent influences. Unfortunately
we could be faced with unstable feedback.
Worker
capabilty
RevenueSales
Price
Cost per item
Utilization
Wages
Income
Job satisfaction
Costs of quality
+
+
+
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+
+
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+
+ +
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Product
quality
+
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Price
Sales
Driver
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Conflictingopposite
effect
Simultaneuoseffect
Outcome
Advertising
Production volume
++
Network basics
Driver
Driver
Outcome
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Partial network
finance
Partial network
market
Partia lnetwork
goverment
Partial network
company
It is easier to create four different
partial networks than in one step
the whole net. When you finisjhed
the partial nets than you haveto link them together.
Before you start with the
venture accounting
create your nets!
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15 %
10% current acount
Standard
capltal structure
Borrowed Capital
Current account
Equity given by
other parties
Own equity
50 % long and medium credits
40 % Equity
We find normally a specific capital structure in successfull ventures (A big thumb rule)
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The system of venture accounting
Balance account
Definig the
operational fixed and
running
Assets
Financial account
Capital structure
(repayment, interest)
Profit and loss aacountg
ProfitabilityCash Flow Accountg
Liquidity
Processofiteration
of cash
for operations
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Principles
ofventure accounting
Earnings=
Min !
Expenses=
Max !
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Ascertain-met
of cost
Using in the
venture
accounting
110 %
Ascertain-
ment
ofrevenues
Using in the
ventureaccounting
= 90 %
Principles of venture accounting = Principle of caution
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The excel sheetsintegrated in a work book- of the venture accounting
Personel
planInvest
plan
Sales /revenue
planProduction
plan
Balance sheetP&L Fin.AccoutingRunning CF
Accouting
Depreciation
planCost plan
Tax
projection
Outcome-plans
Driver-plans
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time
Beginning of the venture
Business creation
First phase =
monthly or quarterlySecond phase =
quarterly or half-yearly
Third phase =
half-yearly or yearly
End of the plan
= sustainable profitability and liquidity
max 4 years
Planning horizon
Line of inaccuracy
Error propagation =>
e (t) = f (e (t-1)) + De
The disadvantage ob our business plan is that we are faced with error propagation,
the consequence is that we have to renew our calculation to adapt to realised numbers
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Balance sheetP&L Fin.AccoutingRunning CF
Accouting
Outcome-plans
Profit and loss
Time period p1 P1+1 P1+2
Earnings
Revenue
Expenditure
Pers. Cost
Depreciation
Interest
..
Result
CF Statement
Time period p1 P1+1 P1+2
CF operation result
depreciation
D payables
D receivables
CF financing repayment
new loan
CF Invest. ..
CF
Finance
plan
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Finance plan
Time t1 t1+1 t1+2
Loan 1 Amount
Interest
Repayment
Loan 2 Amount
Interest
Repayment
.. ..
S New Loan
S Interest ..
S Repayment
CF Accounting
P &L Accounting
CF Accounting
Balance sheet accounting
Time t1 t1+1 t1+2
Assets Machinery
Raw material
Receivables
Cash
Liabilities Equity
Provisions
Loans
Payables
P&L accounting
P&L + CF accounting
CF accounting
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Estimation of cash for operations
1. Iteration
Raw material
Other inventory
Other payments
for operation
Proprietors savings
SCash or cashequivalents
Time of circulation * savings per month for living
Time of circulation * used raw material in productionduring this time * price
Time of circulation * used other inventory duringthis time * price
Time of circulation * monthly payments for employees,Interest, repayment, taxes, telecommunication, rent,leasing etc.during this time
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time
Start of the ventureRevenue plan Cash-inflow
Cash requirement
The time of circulation is the time from the startpoint to the point where the cash inflow is
equal the cash requirement of operations
Time of circulationthroughput time
(normally in months)
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It is not efficient to read all the books you find about business plansas to do in reality so let us start!
The profit of learning lays not in speaking about business plansbut in doing / creating a bp
A very very simple thumb rule of learning
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Reading assigment before you will start with the business plan:
Entrepreneurship (Hisrich et al) 6th Edition pages 184294
Use the bp-planning tool in the game to create your bp!