HW2.0

1. Creativity and Business Idea

5 steps to Business Creativity

• Doubt everything  challenge your current perspective
• Explore options around you
• Generate many new and exciting ideas
• Drive breakthrough result
• Lastly, re-evaluate relentlessly.

Reference:

http://www.forbes.com/sites/rogertrapp/2013/10/21/five-steps-to-business-creativity/

Synthesis:

This step is important to make your business good and also to earn more profit because if you don’t have a strategy to your business, your business might be shut down.

2. Legal Issues for entrepreneurs

10. Failing to incorporate early enough.
One problem that arises here is the so-called “forgotten founder”: a partner involved in starting the venture subsequently drops out. When the venture gets financing or is ready to go public, this partner returns, perhaps with an inflated view of what his or her contribution was, demanding equity.

9. Issuing founder shares without vesting.
Simply put, vesting protects the members of the founding team who take the venture forward. If people remain on the team and are productive, their shares will vest. If they leave earlier, that stock can be retrieved and given to whoever is brought in to replace them.

8. Hiring a lawyer not experienced in dealing with entrepreneurs and venture capitalists.
Many venture capitalists say that they often rate the judgment of entrepreneurs by their choice of legal counsel. Lawyers who have no experience working with entrepreneurs and venture capitalists will most likely focus on the wrong things while failing to recognize some of the more subtle potential traps.

7. Failing to make a timely Section 83 (b) election.
If the advice in #9 is followed, then shares will be issued, subject to vesting, to the founders as well as new employees.

6. Negotiating venture capital financing based solely on the valuation.
Valuation is not the only thing one should consider when selecting a venture capitalist or when negotiating the deal.

5. Waiting to consider international intellectual property protection.
Patents are granted on a country-by-country basis (with a single application available for the European Union). In the United States, if an invention is sold or made public, there’s a year’s grace period to file a patent application.

4. Disclosing inventions without a nondisclosure agreement or before the patent application is filed.

To do so, one must show that they’ve taken reasonable steps to keep it secret from competitors.

3: Starting a business while employed by a potential competitor, or hiring employees without first checking their agreements with the current employer and their knowledge of trade secrets.
The law is clear that if someone is currently working for a company, particularly if her or she is a key employee, they cannot operate a competing business. Even just incorporating may spark a lawsuit from the current employer.

2. Promising more in the business plan than can be delivered and failing to comply with state and federal securities laws.
If someone promises to do something and knows that they can’t perform that promise, that’s considered fraud. In a business plan, one must make an honest appraisal of what’s doable and set forth their assumptions, so the person putting up money can judge whether they are realistic.

1. Thinking any legal problems can be solved later.
There’s a tendency to think, “Once I get my funding, once I’m up and running, then I’ve got time to hire the lawyers; right now, I’m running as fast as I can to get my business plan done and raising money.” This is shortsighted logic. Many of the points made here are problems that can’t just be patched up later. Does that mean that one should devote all of their time, effort, and money to the legal issues? No. That’s a good reason to hire a competent lawyer. Excellent legal talent can be retained for relatively little money up front at the early stages. It will cost much less to get it right at the beginning than to try to sort it all out later and correct it

Reference:

http://hbswk.hbs.edu/item/3348.html

Synthesis:

Entrepreneurs must focus on their issue that might arise and take a move to prevent all issues that could happen to their business. The entrepreneurs needs to deals with their issue likes on how they’re going to solve the problems/issue and entrepreneurs must assured that all of they going to do to their business are fully followed the law of business that you want to put up whether it is partnership or entrepreneur business.

3. The Business Plan

A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate, and keeping it up-to-date, is an investment that pays big dividends in the long term.

• Title Page and Contents

A business plan should be presented in a binder with a cover listing the name of the business, the name(s) of the principal(s), address, phone number, e-mail and website addresses, and the date. You don’t have to spend a lot of money on a fancy binder or cover. Your readers want a plan that looks professional, is easy to read and is well-put-together.

• Executive Summary

The executive summary, or statement of purpose, succinctly encapsulates your reason for writing the business plan.

• Market Analysis

A thorough market analysis will help you define your prospects as well as help you establish pricing, distribution, and promotional strategies that will allow your company to be successful vis-à-vis your competition, both in the short and long term.

• Competitive Analysis

The purpose of the competitive analysis is to determine:

the strengths and weaknesses of the competitors within your market.

strategies that will provide you with a distinct advantage.

barriers that can be developed to prevent competition from entering your market.

any weaknesses that can be exploited in the product development cycle.

The first step in a competitor analysis is to identify both direct and indirect competition for your business, both now and in the future. Once you’ve grouped your competitors, start analyzing their marketing strategies and identifying their vulnerable areas by examining their strengths and weaknesses. This will help you determine your distinct competitive advantage.

• Operations and Management

The operations and management component of your plan is designed to describe how the business functions on a continuing basis. The operations plan highlights the logistics of the organization, such as the responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business.

• Financial Components of Your Business Plan

After defining the product, market and operations, the next area to turn your attention to are the three financial statements that form the backbone of your business plan: the income statement, cash flow statement, and balance sheet.

• Supporting Documents

In this section, include any other documents that are of interest to your reader, such as your resume; contracts with suppliers, customers, or clients, letters of reference, letters of intent, copy of your lease and any other legal documents, tax returns for the previous three years, and anything else relevant to your business plan.

Reference:

http://www.entrepreneur.com/encyclopedia/business-plan

Synthesis:

Business plan is a map that provides a direction to your business in the future and business plan includes information such as title page and contents, executive summary, market analysis, competitive analysis, operations and management, financial components of your business plan and other supporting document and the time you make a plan to your business it is possible that your business will be successful.

4. The Marketing Plan

The part of the business plan outlining the marketing strategy for a product or service and the marketing plan includes information such as the product or service offered pricing, target market, competitors, marketing budget and promotional mix.

Reference:

http://www.marketingterms.com/dictionary/marketing_plan/

Synthesis:

Marketing plan is how a company plans to advertise and promote its product because marketing plan includes: product or service, target market, competitors, promotional mix and lastly important is marketing budget.

5. Financial Plan

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement.  The financial planning process involves the following steps:

• Gathering relevant financial information
• Setting life goals
• Examining your current financial status
• Coming up with a financial strategy or plan for how you can meet your goals
• Implementing the financial plan
• Monitoring the success of the financial plan, adjusting it if necessary

Using these steps, you can determine where you are now and what you may need in the future in order to reach your goals.

Reference:

http://www.financialplanningdays.org/content/learnaboutfpd.aspx

Synthesis:

it means a step or a goal and  it gives an idea to make a direction and meaning to your financial decision and also financial plan is important to a business company.

6. Organizational Plan

The end result of the process of setting medium and long term objectives for an organization and then developing a strategy to accomplish those goals. Producing a coherent organizational plan is one of the most important tasks of senior business management since it provides consistent guidance and an action plan for the rest of the company to follow.

Reference:

http://www.businessdictionary.com/definition/organizational-plan.html

Synthesis:

It is the end result of the long term objectives of the organization that can develop the strategy to accomplish those goals and organization plan is important task of senior business management because it provide guidance and action to your company.

HW1.0

1. Globalization

Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.

Reference:

http://www.businessdictionary.com/definition/globalization.html

Synthesis:

Because of the globalization various countries had a connection through the free transfer of goods and services and consequently had a good understanding and helping each country.

2. Nature and Importance of Entrepreneurs

The term entrepreneur comes from the French and translates “between-taker” or “go-between.”

Earliest Period

In this period the money person (forerunner of the capitalist) entered into a contract with the go-between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the physical and emotional risks.

Middle Ages

In this age the term entrepreneur was used to describe both an actor and a person who managed large production projects. In such large production projects, this person did not take any risks, managing the project with the resources provided. A typical entrepreneur was the cleric who managed architectural projects.

17th Century

In the 17th century the entrepreneur was a person who entered into a contract with the government to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who “buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk.”

18th Century

In the 18th century the person with capital was differentiated from the one who needed capital. In other words, entrepreneur was distinguished from the capital provider. Many of the inventions developed during this time as was the case with the inventions of Eli Whitney and Thomas Edison were unable to finance invention themselves. Both were capital users (entrepreneurs), not capital providers (venture capitalists.) Whitney used expropriated crown property. Edison raised capital from private sources. A venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on investments.

19th and 20th Centuries

In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic perspective. The entrepreneur “contributes his own initiative, skill and ingenuity in planning, organizing and administering the enterprise, assuming the chance of loss and gain. “Andrew Carnegie is one of the best examples of this definition, building the American steel industry on of the wonders of industrial world, primarily through his competitiveness rather than creativity.

In the middle of the 20th century, the notion of an entrepreneur as an innovator was established. Innovation, the act of introducing something new, is one of the most difficult tasks for the entrepreneur. Edward Harriman and John Pierpont Morgan are examples of this type of entrepreneur. Edward reorganized the Ontario and southern railroad through the northern pacific trust and john developed his large banking house by reorganizing and financing the nation’s industries. This ability to innovate is an instinct that distinguishes human beings from other creatures and can be observed throughout history.

Reference:

http://www.zeepedia.com/read.php?the_nature_and_importance_of_entrepreneurship_definition_of_entrepreneur_entrepreneurship&b=43&c=1

Synthesis:

In the earliest period the capitalist give capital to those person whose entering the contract while the middle ages the entrepreneur was use to describe both actor or to contract and the capitalist in the this large product this person cannot take the risk in 17th century Richard Cantillon develop theories of entrepreneur and regarded as the founder of the term. In the 18th century the person with capital was differentiated the one needed capital in other word it is the capital provided Eli Whitney and Thomas Edison users not capital provider.

3. Entre-Intra preneurial Mind

The Entrepreneurial Process involves finding, evaluating, and developing an opportunity by overcoming the strong forces that resist the creation of something new.

Reference:

http://www.assignmentpoint.com/business/entrepreneurship-development-business/entrepreneurial-and-intrapreneurial-mind.html

Synthesis:

The entre-intra preneurial mind is the process to find, evaluate, and develop to create a something new to make the profit increase.

4. Individual Entrepreneur

An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.

Reference:

http://www.investopedia.com/terms/e/entrepreneur.asp

Synthesis:

Individual entrepreneur is the one who is working as employee and the risk of that is by given business idea or service offered to the sale and commonly the entrepreneur called a business leader.

5. International Entrepreneurship Opportunities

International Entrepreneurship is the process of an entrepreneur conducting business activities across national boundaries. Entrepreneurship in this sense may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses; in recent years, the term has been extended to include social and political forms of entrepreneurial activity.

References:

http://www.assignmentpoint.com/business/entrepreneurship-development-business/lecture-on-international-entrepreneurship-opportunities.html

Synthesis:

The international entrepreneurship is a process of conducting business activities in national boundaries and also this mature organization is response to opportunity.