Success Factors

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Transcript of Success Factors

SUCCESS FACTORS of

EntrepreneursBy Francis A. Balagtas

Key Success Factors

Skill Expertise & Aptitude

Personal Qualities

Managemen t Skills

External Factors

Know your..StrengthsPositively applied

Weaknessespersonal development attending courses appointing staff and/or experts to compensate where needed

Key Success Factors

Skill Expertise & Aptitude

Personal Qualities Management Skills

External Factors

1. The Skills, Expertise, Aptitudes (SEA) of an Entrepreneur

Skills

- refers to manual work and can be learned e.g. an electrician, a hairdresser or cabinetmaker Expertis

eis based on knowledge you acquired by Aptitude - Each person is born with aptitudes and

studying and/or experience. Experts in the field e.g. taxation, computer systems and

talents. Some are artistic, some have talent for communicating and others have flair for

Technical thinking +

(A)

Draws furniture

Knowledge of antiques (E) + Cabinet-maker

Restores antique furniture

Design and installs kitchens (S) and built-in cupboards

Artistic + Experience in jewelry design + Apprentice in jewelry manufacture

(A)

Pr d u s s lls rt

d/ r

(E)

Designs jewelry

(S)

Manufactures jewelry

2. The important personal characteristics of entrepreneursa. Perseverance b. Commitment to the business c. Involvement in the business d. Willingness to take risks e. Sound human relations f. Creativity and innovative ability g. Positive attitude and approach

a. Perseverance

They do not lose heart when they make mistakes or fail but they have intense determination to complete a task.

b. Commitment to the businessusing their own money to establish the business. working long hours in order to succeed accepting a lower standard of living and possibly earning little or no income until his bus. becomes successful.

c. Involvement in the businessThey are personally involved. They are aware of everything that is happening on his business.

d. Willingness to take risksThey take calculated risks. It should not be too great nor too low.

e. Sound human relations

They realize that they cannot be successful in isolation but in long-term relationships.

f. Creativity and innovative abilityEffective entrepreneurs take the initiative to solve problems in a unique manner.

g. Positive attitude and approachThey are able to identify opportunities even in adverse and difficult situations.

3. The important functional management skills of entrepreneursGeneral Manageme nt Functions Production / Operationa l Functions

External Relations Functions

Admin Functions

Business Functions

Financial Functions

Marketing Functions

Human Resources Functions

Purchasing Functions

Important aspects of management skills:a. Planning a business before it is established b. General management skills and the use of advisers c. Customer service d. Knowledge of competitors e. Market orientation f. The importance of quality products or services g. Accounting for your own purposes h. Insight into expenditure, income, profit and loss i. The ability to use income wisely

a. Planning a business before it is established drawing up a business plan- identify problems early on - consider all important factors concerning intended business - take decisions for the future - opportunity for testing ideasFinancial Functions Marketing Functions General Manageme nt Functions

Production / Operationa l Functions

b. General management skills and the use of advisers know what is needed for successGeneral Manageme nt Functions Human Resources Functions

appointing/hiring a trained staff / expert

c. Customer serviceafter sales service attention to details serving refreshments when client visits attractive premises user-friendliness

Admin Functions

Marketing Functions

d. Knowledge of competitors who? how many? size? operations? of which segment of market they control? your edge?External Relations Functions Marketing Functions

e. Market orientationwho is your target market? developed products and services to satisfy the clients requirements opposite of product-orientedMarketing Functions

f. The importance of quality products or services Quality = Costs Quality Expensive Cost must be kept check w/o affecting the quality of goods / services. Quality = MarketingMarketing Functions Purchasing Functions

g. Accounting for your own purposes able to understand their own accounting systemAdmin Functions Financial Functions

h. Insight into expenditure, income, profit and loss distinguish between income and profit

i. The ability to use income wisely exercises financial discipline dont waste money on unnecessary personal luxuries and status symbols

4. Dealing with external factors that affect entrepreneurshipFluctuating interest rates & customer spending power Exploit technological developments Identify opportunities for growth in market Opportunities after political adjustments and of alternative raw Use events materials Expand and establish business in another country

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Thank you!