Entrepreneurship Management: Starting a New Business Venture

This document discusses the concept of entrepreneurship management and the role of a business plan in starting a new business venture. It explores the skills and abilities required for success as an entrepreneur and provides insights into market research, target market, marketing strategies, and legal and financial considerations.

Module 234

EXECUTIVE SUMMARY
The term entrepreneurship management is defined as the practice of taking and utilizing
entrepreneurial knowledge for improving the effectiveness of starting a new business venture as
well as medium and small size business. It has been found out business plan plays an important
role in guiding an entrepreneur to take various decisions.

Acknowledgement
I would like to express my special thanks of gratitude to the class teacher for their
guidance and support to complete the project. Even I would like to extend my gratitude to the
Principal and parents who provide me with all the facility which I was required. Lastly, I would
like to thank my friends, colleagues who share their knowledge and always motivate me to
complete the project to get better results.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Acknowledgement...........................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
My story -.....................................................................................................................................3
TASK 2............................................................................................................................................4
Idea/Concept -..............................................................................................................................4
TASK 3............................................................................................................................................5
Introduction..................................................................................................................................5
Objectives ...................................................................................................................................6
Market research............................................................................................................................6
Target Market...............................................................................................................................7
Marketing.....................................................................................................................................7
Human Resource..........................................................................................................................7
Operations....................................................................................................................................7
Legal issues -................................................................................................................................8
Financial -....................................................................................................................................8
Contingency and exit strategies -.................................................................................................9
Other issues -................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The term entrepreneurship is defined as the process of launching, designing and running a
new business which is initially a small business. It is also defined as the willingness and capacity
to develop, manage and organize a business venture along any of the risks to gain profit. It is a
dynamic activity that includes operation and creation of an enterprise by ensuring optimum
utilization of the funds. It involves the activity of developing innovative products or services.
The Report is based on a new business idea of starting John Home Furnishing for smart home
parts distribution in UK.
TASK 1
My story -
The term Entrepreneur is defined as the individual who develops a new idea for starting a
business that enjoy most of the rewards and also bears high level of risk. They play a major role
in the country by using initiatives and skills that are necessary to bring new ideas to the market. I
am an entrepreneur as I have taken risk to start a new business called John Home Furnishing for
distributing smart home parts. I possess major skills that are required in an entrepreneur to start a
new venture such as creativity, problem solving, independence, organization skills etc. My
family is not entrepreneurial but family members has supported me in establishing the new
business (Lynch, Lynch and Clemens, 2018).
The term entrepreneurial skills and abilities are defined as the competencies that are
required in individual to become successful. The term skills refers to the ability that helps
entrepreneur to perform multiple task and promoting interest in the business. I possess various
types of pre entrepreneurial attributes and skills such as ambition. I have internal drive to work
hard for achieving the aim and objectives behind starting a new business of smart home parts
distribution. Further, I also possess the skill of creativity because I will develop and supply
innovative products that are used in smart homes such as security alarms, security cameras etc.
Entrepreneurial skills and abilities are very important for achieving the goal and objectives of the
venture.
Belbin defines a team role as a tendency to contribute, behave and interrelate with other
individuals in a specific manner. There are 3 roles related with action like complete finisher,
implementer and shaper. There are 3 people oriented roles that are team worker, coordinator and
resource investigator. Further, there are 3 cerebal roles that are monitor, plant and evaluator etc.
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Moreover, according to Belbin's team roles, I am a specialist as I make efforts to bring in
depth knowledge in respect of new business to the team members (Kirzner, 2015).
TASK 2
Idea/Concept -
The term idea can be defined as combination of different types of thoughts that are
generally developed with the intent but it can also be created unintentionally. There are various
types of ideas such as abstraction, brainstorming, thought experimentation etc.
There are various lessons that can be learned by the individual while getting the concepts
and ideas to the market place. The concept of starting the business of smart home parts
distribution helps me to learn various things. These are as follows -
Focus on the problem -
One of the major lesson learned is that starting a new business helps to bring new
products in the market place that helps to provide solutions for current problems that are faced by
the organization. Questionnaire helps to evaluate the views, attitude, need of people in respect of
products that are used in smart homes such as security cameras etc. It helps to understand the
problems related with security that customers are facing currently in their homes.
Focus on a market niche -
Another important lesson that has learned is that entrepreneur should concentrate on a
specific target segment to offer new product or service. Developing marketing strategies for a
niche segment not only provides new start-ups an opportunity to start a new business in
successful way but also assist the entrepreneur to grow into major players in a larger market.
Further, for distributing smart home parts the target market has been selected on the basis of
different factors such as demographic, behavioural etc. This will help to satisfy the requirements
of particular niche segment as well as it will also support the business to increase the sales and to
improve profitability (.
Reduce barriers to conduct business -
Another important lesson learned is that entrepreneur faces various barriers while
establishing a new business. I also faced various problems in starting the business of distributing
smart home parts. One of the major problem faced is related with cash flow. This problem has
emerged from delay in invoicing. Therefore, entrepreneur should adopt methods for proper
management of cash flow such as effective budgeting. Another thing required is down payment
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for the products. Another challenge that is faced while conducting business is related with hiring
skilled workers that helps to manufacture and deliver innovative parts for smart home to clients.
It has been analysed that employer should recruit workers from different sources such as internal
and external sources. This will help to recruit and select skilled employee's that helps to achieve
the aim and objectives of the firm.
Understanding the competition is a good thing -
I have also learned that competition can be a good thing for buyers as well as for the
business as well. The level of competition existing in the market between various firms help to
develop innovative product for the customers. There is intense competition between firms that
are operating in furnishing industry. This has provided an opportunity to develop and offer
unique smart home parts to the clients such security cameras etc. Competition between various
companies creates competition between firms to supply differentiated products that help the firm
to secure competitive position in the market. Another lesson learned is that competition forces
firms to make efforts for innovating new products. It also drives growth of economy and also
help to improve standard of living of people living in the country (Ruch and et.al, 2018).
Keep message consistent -
If customer views one thing in a presentation and different message on the website of
company or in an advertisement it is possible that they have to mentally reconcile all the
different types of messages. There are possibility that they will not engage with the business and
not purchase the products offered by the company. Therefore, entrepreneur should also focus on
improving the marketing function because it greatly affects the sales and profitability of the
company. There should be proper objectives behind marketing activities performed by the
business.
TASK 3
Introduction
The business concept is based upon the smart home part distribution in which John Home
Furnishing provides different and smart home parts such that Security system, intercom system,
shaded and sprinkles and music that helps to prevent from risk and threats. Further, this business
concept is consider one of the most innovative system because it helps to provide safety
environment within homes (Ruiz-Pava and Forero-Pineda, 2018). This concept also generates an
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opportunity in which people creates awareness which force them to use such kind of mart home
part smart home part in their homes.
Objectives
As the business concept is to distribute the home part products with bet quality so that it
will help to generate better opportunities for the people. As through this business idea, John
Home Furnishing will be easily generate best outcomes and also make money that will further
help to strengthen up its financial performance. Therefore, a business idea is all about to
implement new ideas that further help to solve many problem and also fill better business
opportunities as well. Moreover, the main objective to develop this business concept is to
provide effective home parts with better quality using advance tools and techniques so that it will
easily attract wide range of people.
Market research
To determine whether the new business idea is beneficial for the company or not, there is
a need to include primary and secondary research. Therefore, for primary research, questionnaire
is prepared that helps to determine the perception of customers (McAlexander, Koenig and
DuFault, 2016). Further for secondary research, books and journals are used that helps to
analyses the whether the present business idea is beneficial or not.
Primary research: In order to conduct primary research, 20 people are chosen to identify their
views
Question 1: Do you have any security concern in your homes?
Answer: Majority of the respondents are in favor that they all have security concern and that is
why, most of them already install security alarm system, CCTV in order to regulate their in-
home activities. Such that out of 20, 15 are in favor while only, 5 did not have knowledge with
this. Therefore, it shows that offering home parts which includes security alarm, CCTV will help
the business to make better returns.
Question 2: What are the security issues do you face in your homes?
Answer: Majority of the respondents states that they faces issue in falsely triggered alarms and
security system, while 3 out of 20 state that they faces issue related to maintenance of these
system. Therefore, it is clearly reflected that while offering home parts, John Home Furnishing
make sure that they provide techniques by complying advance technology so that they will easily
operates and it also did not require any major cost for maintenance.
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Secondary research: From the data collected using Internet, books and Journals, It is analyzed
that people have more concerns and that is why, there is a need to offer smart home furnishing
items so that they may used this items in order to get better results.
Target Market
Target market are the group of consumer and organization who are most likely to buy the
company's product and services. It is so because they are likely to want or need the company's
offering by more focusing on the marketing. Further, for smart home parts, the company's target
market are the upper and middle class people who actually afford this kind of products so that
they may easily attract wide range of public (Noe and et.al., 2017). As this characteristic makes
them different from others such that they may easily buy the products because they have good
income sources and they may easily buy the same.
Marketing
Marketing is all about to promote the products in the market in order to generate best
results. That is why, John Home Furnishing needs to develop best strategy so that they may
easily attract wide range of customers. Such that it uses social media, advertisement and
billboards in order to attract wide range of public. At initial stage, to attract customers, quoted
firm offer discount strategy In which it provide 20% off on the selected smart home parts so that
large mass of group got attracted easily.
Human Resource
They are responsible to hire the man who are able to perform the work in better way and
also work In adverse situation as well. Further, it is also analyzed that HR of John Home
Furnishing may easily recruit the candidate by using effective recruitment process. For that, HR
of the company evaluates the current approach of recruitment which further includes design and
purpose of the vacant seat and then evaluate candidate's CV to evaluate whether he/she is eligible
for the seat or not (Barnard, 2017). Further, they take interview in which they analyze
communication and interpersonal skills that helps to evaluate they are liable for the position or
not.
Operations
Business canvas model
Key partners
 Office
furniture
Key Activities
 Maintaining
and improving
Value
propositions
 Customi
Customer
relationships
 Personal
Customer
segments
 Office
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 Office
furniture
Retailer
product
quality
 Managing
customer
relationship
 Supplier
relationship
management
zed
product
's
dimensio
n
 Affordab
le price
 Product
quality
assistance  Govern
ment
 Individ
uals
Channels
Cost structure
 Employee salary
 electricity charges
 Water charges
 Telephone charges
 tax
 Track Maintenance
Revenue streams
 Selling home products
Legal issues -
There are various types of legal issues that entrepreneur faces while conducting the
business. Owner of the firm may also take the help of an expert to comply legal laws. While
conducting the business of supplying smart home parts. Owner is required to comply laws
related with Health and safety of workers, Equality Act etc. Entrepreneur is required to ensure
that human resource department should provide equal employment opportunities to every
employee. Further, business also have to face issue related with intellectual property rights
(Martin, 2017). Entrepreneur is required to protect its innovative idea and products with the help
of patent rights, trademark etc. This will help to protect innovative idea to be copied by the
competitors.
Financial -
The term financial plan is a combined document that involve details in the respect of savings,
cash flow, debt, insurance and other elements. Financial planning in respect of business refers to
determining the way in which company will afford to attain strategic aims and objectives of the
business (Dudin and et.al, 2015).
Budget is defined as financial plan related with future that is related with cost and
revenue of the business.
Expenses Amount (£)
Plant and Machinery 4000
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Expenditure on marketing 1000
Salary and Wages 3000
Equipments 2000
Total 10000
Contingency and exit strategies -
There are various risk related with establishing a new business such as lack of funds,
financial risk, having lot of debt etc. The entrepreneur may adopt various types of strategies for
exiting from the current business. Such as selling the business to manager, liquidation etc. Owner
of the business may sell the existing business to the manager who is interested in purchasing the
business. Major advantage is that it may allow businessmen to maintain a share of the firm and
stay in an advisory capacity.
Other issues -
There are some other issues that entrepreneur may have to face while establishing a new
business. One of the major issue is lack of skilled employee's for performing various types of
functions. If, there is lack of competent workforce in the country in that case, entrepreneur will
have to outsource the workers from another country.
Another issue that entrepreneur may have to face is related with technology. It may be
possible that business does not have advanced tools and techniques for developing smart home
parts. Further, they may have to face the issue of lack of financial resources.
CONCLUSION
By summing up above report, it has been concluded that developing new business idea is
more beneficial for the existing firm because it helps the generate more sources of revenue and
also sustain the brand image in market as well. Moreover, report also concluded that offering
smart home furnishing parts to the customers will help the business to attract wide range of
public and John Home Furnishing also set budget i.e. 10000 pound which helps the business to
operates smoothly without any obstacles. Budget defines the expenses and revenue for a
particular period of time.
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REFERENCES
Books and Journals -
Barnard, C. N., 2017. The operation: a human cardiac transplant: an interim report of a
successful operation performed at Groote Schuur Hospital, Cape Town. SAMJ: South
African Medical Journal. 107(12). pp.1271-1274.
Dudin, M., and et.al, 2015. The innovative business model canvas in the system of effective
budgeting. Asian Social Science. 11(7). pp.290-296.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Lynch, D.S., Lynch, M.J. and Clemens, C.M., 2018. Belbin Team Roles. The Handbook of
Communication Training: A Best Practices Framework for Assessing and Developing
Competence.
Martin, S., 2017. Boosting your budgets. Seced, 2017(12). pp.12-12.
McAlexander, J. H., Koenig, H. F. and DuFault, B., 2016. Millennials and boomers: Increasing
alumni affinity and intent to give by target market segmentation. International Journal of
Nonprofit and Voluntary Sector Marketing. 21(2). pp.82-95.
Noe, R. A. and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Ruch, W., and et.al, 2018. Team roles: Their relationships to character strengths and job
satisfaction. The Journal of Positive Psychology. 13(2). pp.190-199.
Ruiz-Pava, G. and Forero-Pineda, C., 2018. Internal and external search strategies of innovative
firms: the role of the target market. Journal of Knowledge Management.
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