Starting your business & Idea evaluation

Yacar-Yacara Consults

ENTREPRENEURSHIP

&

MANAGEMENT SKILLS

Kofi Kyeremateng Nyanteng

(Yacar-Yacara Consults)

[email protected]

+233501377013

Training Manual

FOR

ASSEMBLIES OF GOD, GHANA

ASHANTI REGIONAL YOUTH CAMP 2015

1 | Y a c a r - Y a c a r a C o n s u l t s

MODULE 1

EVOLUTION OF ENTREPRENEURSHIP

Module objectives

o To understand entrepreneurship

o To understand the biblical foundation for entrepreneurship

o To orient and expose the youth to business and self-employment

Module content

o Definition of entrepreneurship

o Evolution of entrepreneurship (the biblical concept)

o Why entrepreneurship (the biblical perspective)

o Definition of an entrepreneur

o Entrepreneurs in the bible

o Self-employment vs wage employment

o The need for youth entrepreneurship / self-employment


1.1 What is entrepreneurship?

i. Entrepreneurship refers to identifying/innovating ideas, product and services;

mobilizing resources; organizing production/service and finally, marketing them with

constant strive for growth and excellence.

ii. The process of identifying opportunities in the market place, arranging the resources

required to pursue these opportunities and investing the resources to exploit the

opportunities for long term gains. It involves creating wealth by bringing together

resources in new ways to start and operate an enterprise.

iii. The processes through which individuals become aware of business ownership then

develop ideas for, and initiate a business.

iv. The art of identifying viable business opportunities and mobilising resources to

convert those opportunities into a successful enterprise through creativity, innovation,

risk- taking and progressive imagination”

Question 1: What are the prevailing key words in the definitions?

1.2 Who is an entrepreneur?

An entrepreneur is any person who creates and develops a business idea and takes the risk of

setting up an enterprise to produce a product or service which satisfies customer needs.

Entrepreneur refers to the person and entrepreneurship defines the process.

Both men and women can be successful entrepreneurs; it has nothing to do with gender.

An entrepreneur is an individual who:

Has the ability to identify and pursue a business opportunity;

Undertakes a business venture;

Raises the capital to finance it;


Gathers the necessary physical, financial and human resources needed to operate the

business venture;

Sets goals for him/herself and others;

Initiates appropriate action to ensure success; and

Assumes all or a major portion of the risk

1.3 The biblical foundation of entrepreneurship

The creation of man

Ge 1:28 Then God blessed them, and God said to them, "Be fruitful and multiply; fill the

earth and subdue it; have dominion over the fish of the sea, over the birds of the air, and over

every living thing that moves on the earth. 29" And God said, "See, I have given you every

herb that yields seed which is on the face of all the earth, and every tree whose fruit yields

seed; to you it shall be for food. 30 "Also, to every beast of the earth, to every bird of the air,

and to everything that creeps on the earth, in which there is life, I have given every green

herb for food"; and it was so. 31 Then God saw everything that He had made, and indeed it

was very good. So the evening and the morning were the sixth day.

1.4 The problem:

After God had finished creating all things, he identified a problem. The problem was how the

resources were going to be useful for other purposes. The dominion mandate is the genesis of

“entrepreneurship”.

God is the origin of entrepreneurship.

God is the first entrepreneur.

Adam became the first man to start doing business.


1.5 Why entrepreneurship (the biblical perspective)

The purpose of entrepreneurship is to solve man’s problem with God’s given resources.

Christian youth entrepreneurship is needed to solve Ghana’s unemployment problems

1.6 Entrepreneurs in the bible

Adam

Abraham

Noah

Jacob, etc.

1.7 Self-employment vs wage employment

Variables Self-employment Wage employment

i. Income No limit Restricted

ii. Responsibility More Absent

iii. Creativity Unlimited and rewarding Limited and sometimes not

recognised/rewarded

iv. Freedom Unlimited Limited

v. Scope for

implementation

vi. of own thoughts

Full freedom to do so Limited freedom to do so

vii. Satisfaction,

happiness

Available in plenty Scarcely available

viii. Contribution church,

ix. society, nation

Directly and in more

proportion

Indirectly and less proportion


MODULE 2

OPPORTUNITY IDENTIFICATION, ANALYSIS AND

SELECTION

- STARTING THE BUSINESS -

Module objectives

To objectives of this module are:

o To generate and identify real business ideas

o To evaluate business ideas

o To convert ideas to opportunities

o To select viable and sustainable business opportunities

o To start their own businesses

Module content

o Ideas vs. opportunities

o Ideas generation

o Opportunity identification

o Opportunity evaluation

o Opportunity selection

o Opportunity implementation

o Sources of fund


2.1 What is business?

Businesses are activities that provide goods and/or services in exchange for money or other

goods and services.

2.2 Types of businesses

Designing - buildings, gardens, paths, posters, etc.

Manufacturing or producing - goods like clothing or furniture, or parts of good to be

used by others to make complete goods, such as processing paper to make books

Supply and distribution - moving goods from producer to client

Selling - retailing – buying from a producer or another intermediary business and

selling to the consumer, or wholesaling – buying from a business and selling to other

retailers or repair businesses

Installing - fitting or connecting the product to the customer’s home or business

Repairing - restoring broken or defective goods to working order

Service industries - tourism, information and communication services, leisure

activities, etc.

“Every business is birthed out of an idea which was transformed into an opportunity”

2.3 What is a business idea?

Every business is born from an idea. Idea is the source of every business

“A business idea is a short and precise description of the basic operations of an intended

business.”

A good business starts with a good business idea. Before an idea becomes good for business

it must become an opportunity. A good idea is nothing more than a tool in the hands of an

entrepreneur. Finding a good idea is the first of many steps in the process of converting an

entrepreneur’s creativity into an opportunity.


2.4 Generating a business idea

Business ideas are identified through positive, creative thinking. They can come from

different sources such as ideas built on local resources, local needs, local activities, interests

and hobbies.

Before a business begins it goes through two fundamental stages; problem identification and

solution generation.

i. Stage 1: Problem identification

Every business exists to solve a specific problem. Identifying and defining a problem is the

first step in generating a business idea.

How do we identify potential business problems?

Research

Brainstorming

Brain writing

Mind-mapping

Through conversations

Observations, etc.

Reflection - What problems can we identify in our:

a) Homes

b) Schools

c) Neighbourhood / Communities

d) Churches

e) Workplaces


ii. Stage 2: Solution generation

Every problem has a solution. The solution to every problem is a potential business idea.

To solve problems, solutions (ideas) must be generated. The process of generating solutions /

ideas is CREATIVITY.

2.5 Evaluating and selecting ideas

Before a problem can be solved, there should be an application of a solution. Prior to

selecting the best from the alternatives, all possible solutions must be evaluated. The best

option must be selected.

The best option becomes a business opportunity.

Not every idea is an opportunity. A good idea does not always translate into an opportunity.

Finding a good idea is the first step in the task of converting an entrepreneur’s CREATIVITY

into an OPPORTUNITY.

For an idea to be an opportunity it must be:

Attractive

Sustainable

Timely

Packaged into a product or service,

Finding good ideas and converting them into opportunities is a conscious, deliberate and

creative process. Business opportunities can arise when entrepreneurs use their skills,

expertise or aptitude to provide a product or service to the market.


Business Idea evaluation score sheet

Strongly Disagree 0 1 2 3 4 5 6 7 8 9 10 Strongly Agree

Idea 1 Idea 2 Idea 3

There is a real need for it

All the advantages or benefits of the idea have been

considered

You have the prerequisite skills to implement the idea

The exact problems or difficulties the idea is expected to

solve is known

Immediate or short range gains or results can be

anticipated

The projected returns are adequate

The risk factors acceptable

Faults or limitations have been checked

Customers can afford it

Customers will buy it

The idea can be implemented soon

2.6 Model for Starting a business

Source: Author’s Own Construct

Business problem identification

Business Idea generation

Business idea evaluation

Business idea conversion (opportunity)


MODULE 3

BUSINESS PLANS AND BUSINESS PLANNING

- MANAGING THE SMALL BUSINESS PART 1 –

Module objectives

To objectives of this module are:

o To understand small business planning

o To understand the types of business plan

o To understand the purpose of business plans

Module content

o Overview of Business planning

o Business plans

o Types of business plans

o Benefits of the various business plans

o Benefits of business planning


The content of this module and the remaining 5 modules are intentionally left blank


ENTREPRENEURSHIP AND MANAGEMENT SKILLS

MODULE ONE DISCUSSIONS

1. What is entrepreneurship?

2. How did entrepreneurship start?

3. What is the purpose and benefits of entrepreneurship?


4. Who is an entrepreneur?

5. What are some of the major differences between self-employment and wage

employment?


ENTREPRENEURSHIP AND MANAGEMENT SKILLS

MODULE TWO DISCUSSIONS

1. What is business?

2. What is a business idea?

3. What are the steps in generating business ideas?

4. How can we identify problems to start businesses?


5. Where can we identify problems to start a business?

6. Explain a business opportunity?


GROUP PROJECT

Identify a business opportunity in and explain why the region should support that

business opportunity.

Use the model that has been learnt


BUSINESS IDEA SELECTION SCORE SHEET

Variables Idea 1 Idea 2 Idea 3 Idea 4

There is a real need for it

All the advantages or benefits of the idea have been considered

You have the prerequisite skills to implement the idea

The exact problems or difficulties the idea is expected to solve is known

Immediate or short range gains or results can be anticipated

The projected returns are adequate

The risk factors are acceptable for start up

Faults or limitations have been checked

Customers can afford it

Customers will buy it

The idea can be implemented soon

TOTAL SCORE

Score on a scale of 1 – 10 for each idea based on the variables. After scoring, sum up all the values and find out the total score for each column.

The column with the highest score is the most likely business opportunity (all things being equal).

Note: You can generate other variables for detailed opportunity analysis.


About the trainer

Kofi Kyeremateng Nyanteng is a researcher, strategist and analyst. Nyanteng is adept in

strategic planning, leadership, business analysis, research and analytics, feasibility studies as

well as investment analysis. As a skilled facilitator, he has organized and facilitated

management and leadership training workshops for organisations in the Private, Non-Profit

and Public sectors in the continent of Africa. As a management services provider to the

National Board for Small Scale Industries (NBSSI), Ghana, Nyanteng has built the capacities

of SMEs in management and leadership.

Nyanteng is the CEO of Yacar-Yacara Consults (Strategy, Research & Analytics and

Training), Ghana, and the current Consumer Engagement Director for X-Culture Alumni

Association, Africa.

Photocopies of this document without written or verbal permission of Kofi Kyeremateng

Nyanteng (Yacar-Yacara Consults) is prohibited