IT ENTREPRENEURSHIP ASSIGNMENT.

Question 1

Step 1: You need to establish your mission

In fact your mission statement explains why your business exists. When you come across a
problem or a key decision, the answer will be informed by your mission. Think about what and
why is the reason you started the business, and imagine where you want it to be in the future.
These two elements will provide your mission statement.

Step 2: Then you proceed to analyze your SWOT

With your mission statement is in mind, analyze your business's strengths, weaknesses,
opportunities and threats. List each category in full. Done correctly, this 'SWOT' analysis will
help you to take an objective, critical, unemotional look at your business in its entirety.

Step 3: You should develop your business plan

Try this example: from each SWOT category, select two to five important items. After that, you
should set goals to maximize your strengths, correct your weaknesses, make the most of your
opportunities and nullify your threats. For example, you could decide to focus more strongly on
a particularly successful product or service (strength), and abandon a side-project which is
costing time and money for little return (weakness). Remember that you can't do everything
yourself. Think about how you will delegate tasks and involve all the staff. Avoid remaining on
the negatives - set yourself realistic strategies for improving the business.

Step 4: You must design a budget your business.

All missions and strategies need money to succeed. A smart budget will help you to regularly
review your expenses and make financially beneficial decisions. You may need to take a wide
variety of factors into account when setting your budget. This is where we can help you - why
not give us a call?

Step 5: You must put it in document.

Make sure you write down your finished plan. Include the mission statement, SWOT analysis,
goals and plans, budget and forecasts, and make it clear who is responsible for doing what.
Share it with your key staff and shareholders, and encourage their input.

Step 6: Make it a living document

This is vital! Make your business plan a living document that you and your staff can frequently
update and improve. Consider reviewing its monthly to track your progress and readjust your
strategy as necessary. Hold yourself and your staff accountable for meeting the plan's goals,
and think about introducing an incentive programme to keep everyone motivated.
(b). ANSWER

The Total addressable market would be very poor, there would be low demand of the products
and services.

The industry classification would fall under CO-OPERATIVE SECTOR INDUSTRY.

But the primary competition would be those that are targeting the same audience, have similar
products offering or both. These are the businesses they should regularly track and also have an
in-depth understanding of their operation.

Question 2

(a)- Consumer demand for the franchisor’s service:

Is there strong consumer demand for it? Is the demand expected to continue?

Are there many competitors? Could more competitors enter the market in the next few years?

Is the product or service of outstanding quality?

How is it quality compare to the competition?

Are you confident you can make a market with the franchisor's product successfully in your
marketplace?

-The franchisor's business track record:

What's the story on the franchisor's business record and reputation?

Have you spoken to existing franchisees?

Have you contacted government consumer protection agencies, Canadian Franchise Association
and your local Better Business Bureau?

Is the franchisor's infrastructure comprehensive and stable?

Are there any outstanding legal actions against the franchisor?

-The proposed legal agreement between yourself and the franchisor:

Have you reviewed it with an independent lawyer who specializes in franchise law?

Are the terms of the agreement in line with your expectations?

Does it cover the challenges you will face in running an independent business?

Do you feel pressure to sign before you're absolutely ready?

-The financial strength of the franchisor:

Does the franchisor provide financial information which you can take to your accountant?

What is the background and experience of senior management?

Are you confident the franchisor will still be in business many years from now?

Does the franchisor make available a “Disclosure” document?

-The nature of the franchise fee and on-going royalty payment:

How is the franchisor compensated?

What does the franchise fee cover?

What do you receive in exchange for on-going royalty payments?

-The franchisor's financial interest:

Does the franchisor own the land or building?

Is the franchisor prepared to go on the head lease?

Will the franchisor provide you with financial assistance?

-The franchisor's plans for expansion and growth:

What is the franchisor's plan for targeted expansion?

What are the target markets for growth?

Will your franchise be located where the traffic and demand are likely to be?

Are you assured of exclusive rights to the franchisor's product and service in the area where
you wish to locate?

The franchisor's market intelligence and market research capabilities:

Does the franchisor thoroughly research new markets using reliable and credible market
research methods?

Will you, as a potential franchisee, have access to marketing and product information regarding
your industry as well as your specific business?

What forms of ongoing field support and assistance are provided, and how do they work?

Will the franchisor assist you in the development of your business plan?

-The franchisor's people selection criteria:

Is there a typical franchisee profile?

Are there any special training, educational or other requirements the franchisor would ask of
you?

-The franchisor's financial profile of each franchise location:

What is the total cost going to be for your franchise?

Does this include: equipment, inventory, leasehold improvements, advertising and promotion?
What other costs are included?

What is the minimum cash commitment you must make?

Has the franchisor established a pre-arranged financial services program for franchisees with a
major Canadian chartered bank?

(b)Emphasize customer benefits

One good strategy for increasing sales volume is to incorporate an emphasis on customer
benefits into the sales pitch for a product. Detailing the benefits of a product can help a
customer weigh a product's value.

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2. Know your competitors

Doing some market research into your competitors' products can help you develop a sales pitch
that differentiates your product from the competition. Here are some attributes to compare
between your product and a competing product:

Price: Knowing how much your competition is charging for a similar product can help you more
accurately sell the product based on price.

Value: Value is how many benefits and features a customer is getting for the price of a product.
By identifying your competition's value, you can help position your product to be more valuable
in your market.

Promotions: You may get ideas for promotions to try by examining the promotions your
competition is using to sell products.

3. Understand customers' challenges

Another way to increase sales volume is to position your product to be a solution to a challenge
your customer is facing. You can do this by listing the challenges of customers in your market to
explain the solutions your product can deliver. For example, maybe a customer has trouble with
time management, and your product has a time-saving component that you can include in your
pitch.

4. Integrate sales with marketing

Combining your sales and marketing processes or aligning the two teams can help maximize
sales volume. This collaboration between sales and marketing may create new leads or
strategies that can help your sales team sell a higher quantity of products.

5. Offer sales incentives

You can offer a sales team incentives, like a bonus, to encourage them to sell more units of your
product. Here are a few other forms of sales incentives:

Gift cards: Gift cards to restaurants, stores and services are a compelling way to incentivize
sales.

Event tickets: You can offer tickets to a show or sporting event to reward your sales team for
working harder.

Office additions: You can reward salespeople with standing desks, new chairs or new appliances
when the whole team reaches a goal.

(c) Narciso need forecasted income statement, balance sheet, cash flow statements and Capita
expenditure budget. For the first year, Narciso needs to be even more specific and use
quarterly or even monthly projections. He should make sure to clearly explain His projections,
and match them to his funding requests.

(d) Narciso needs to follow these steps in developing his business plan;

.Begin the Plan with a Summary

.Describe Your Company — Its Business, Goals and Objectives

.Analyze Your Market and Determine Your Marketing Strategy

.Describe Your Product/Service and How They are Produced

.Describe Your Management Organization

.Describe Your Operations

.Summarize Your Financial Needs

.Determine Your Proposed Financing

.Outline Your Plan(s) for the Future

.Other Considerations
Question 3

These are the following options the young woman should consider;

1. Talk it Out with Trusted Allies

Once you have a business idea that you think has real potential, don't keep it to yourself! Share
it with trusted associates for their help in refining and perfecting your vision, especially if
they're within your target market as a potential customer for your business idea. Make sure to
ask questions: Do you think this business idea has potential? How can I flesh it out? Would you
buy this product or pay for this service and if so, at what price?

What if you don't have any associates in the business area you are pursuing? Hone your
networking skills, and don't forget that even people who aren't involved in your business can
provide vital feedback by playing prospective customers.

Getting honest feedback, while sometimes painful, is an essential first step in turning your
business dream into a reality.

2. Research the Market

After you have developed your core business idea, some market research is in order. What
other players occupy the space you want to pursue? How will your offering be similar or
different? And where will your customers come from?

In the research process, be sure to focus on more than the success stories. Is there a similar
business you can look to that didn’t find success? Ask yourself what you will do differently.

Further, try and identify potential partners during this process. If you are launching a pet foods
product, for instance, what sort of retail locations will you want to align yourself with? The
same is true for service businesses. Is there a company out there that might value your service
as an add-on? Partnerships will be valuable as you try and grow your business.

During this process, you may learn things that will cause you to reshape or reconsider your
original idea, which is important during the planning phase. Is there a niche market you can
target? Is the market crowded with players with little differentiation? What competitive
advantage can you develop?

3. Draft a Business Plan

Another vital step in launching a new business is developing a business plan. Business plans can
be formal or informal, but they allow you to crystallize the core components of your business
before launch.

Things to consider: your business “story” and how you will frame it to potential investors and
other interested parties, financial and operational goals, projections, and how you see the
business scaling over time.
If you aren't ready to dive into a full business plan, the One Page Business Plan is a great
resource. It is a short book designed to help you focus your ideas on your developing business
so you can easily share them with potential partners and investors.

Business Model Generation is another excellent book that breaks down the nitty-gritty details
of planning a profitable small business.

4. Build a Prototype

Prototyping is an essential early step in business planning. It allows you to test out whether or
not your vision is feasible.

And "prototyping" is not just for outfits that make physical products. A prototype can also be a
simple website representing your future business that you use to collect email addresses from
interested parties. If you are after a specific niche like fashion or cooking, you might also
consider creating a blog that will help you find a following, so you don't necessarily need to go
out and build a fully formed product—the goal is to validate that some people are willing to pay
for what you're planning to create.

The prototyping phase is all about taking your business vision and making it real to test out
whether or not real consumers will bite.

5. Raise Funds

Consider how much money you need to start up and how you would like to fund your new
enterprise. Some of the most popular approaches include:

"Bootstrapped" businesses are developed by founders with little or no outside investment.

Bank loans or loans from the SBA (Small Business Administration) require that you pay back
principal and interest.

Many new businesses approach outside investors who put in money in exchange for a stake in
the company's eventual revenue.

Finally, newer models like “crowd funding” via outfits like Kick starter allow would-be
entrepreneurs to collect micro-donations to help their businesses grow.

Once you have a strong idea of all of the steps outlined above, you'll be ready to launch your
business that will generate an income.