Description
On this paper talk module four session one starting up a business.
Module Four
Session One
Starting up a business
Module 4: Session 1 1 10/6/2015
1) Introduce module four
2) Recap of the introductory module -
understanding the concept of business
3) Identify challenges faced in raising startup
capital for a business.
4) Discuss strategies for improving a Small
Business Enterprise
5) Discuss business survival strategies
10/6/2015 Module 4: Session 1 2
Objectives of the Session
? Builds on the three previous modules
? Recaps the rationale for starting a business
? Examines the concept of risk in a business.
? Introduces the trainee to interpretation of performance
and position statements
? Reviews financial management policies and ethical
issues in financial management.
? By the end of the module trainees will be able to
understand the essence of a business, the content and
meaning of financial statements and appreciate policies
that guide them and the ethical challenges to a finance
manager.
10/6/2015 Module 4: Session 1 3
Introduction of Finance
and Risk Management module
? The nature of business enterprises; justification
and limited liability preference.
? Business planning including budgetary planning
and control, the budget as a yardstick for
measuring and control of operations and use of
KPIs.
? Performance measurement by profitability and ROI
? Performance measurement by cash, NPV, IRR and
cash flow forecasts, short and long term.
10/6/2015 Module 4: Session 1 4
Recap of earlier modules
? A business is an organization engaged in
the trade of goods, services, or both to
consumers and other businesses.
? In capitalistic economies, businesses are
privately owned, they are administered to
earn profit and to increase the wealth of
their owners.
10/6/2015 Module 4: Session 1 5
Understanding a Business
?Economic reasons – wealth creation
?Self employment
?Financial Independence
?Adventure
?Passion
?Convenience – work at home, flexible hours
10/6/2015 Module 4: Session 1 6
Reasons why people start
own businesses
• Most small businesses fail.
• Unproven business partners and model :
Investors feel safe when they can see
historical operating results
• Lack of coherent business plan.
• Inability to effectively communicate.
• Lack of ready investors.
10/6/2015 Module 4: Session 1 7
Why is it so hard to
raise capital for starting a new business?
?Cash constraints
?Poor planning
?Poor management
?Bad Idea
?Ignoring risks in assessment of
opportunities
?Misfortune
10/6/2015 Module 4: Session 1 8
Reasons why most
small business fail
?Marketing mix: (place, price, promotion, research
& surveys)
?Technology: Use technology that you can to
market yourself and get the word out.
?Staffing relationship: Offer flexible schedules and
terms and benefits, e.g. health insurance
?Analysis of performance: When you run a small
business, there is often little time to analyze what
you are doing.
?Cash flow: Will make or break you
10/6/2015 Module 4: Session 1 9
Strategies for improving
a small scale business enterprise
? Organizational Change: Changes in
management structure, key employees.
? Small Business Repositioning: An
evaluation of a small business with declining
profits, customers and sales can reveal a
need to reposition business functions
? Decrease Overhead: In times of financial
stress, small companies should look to slash
costs and recoup sunk expenses.
10/6/2015 Module 4: Session 1 10
Turnaround strategies for a
declining small business
? Entrepreneurs must take care to ensure
that they are compliant with the laws.
? Avoids default penalties and unnecessary
prosecution that is diversionary
? Licensing and business-regulation
requirements prevent other people from
attacking your business
10/6/2015 Module 4: Session 1 11
Why is it Important for business
owners to comply with regulatory
requirements?
? Considerations: A review of local
regulations prior to getting into business
? Discrimination: Avoid discriminatory
practices that are unconstitutional and
unlawful.
? Safety: Observance of Occupational Safety
and Health
10/6/2015 Module 4: Session 1 12
Compliance Cont’d.
? Watch your revenue and cash - Understand how
much capital you have in the bank at all times, and
realize when you will need to borrow to stay in
business
? Stay updated on competition - Make sure you know
what your competition is up to, and be ready to move
in when they move out.
? Stay in shape: When your company hits tough times,
you will be working more hours and trying to do more
with less rest.
10/6/2015 Module 4: Session 1 13
Business survival strategies
1.Explain what a business is and suggest reasons for
starting up a business.
2. Discuss the common challenges faced in raising capital
for a new business.
3. Explain the common reasons why most businesses fail
and why you preferred to join road construction
business.
4. Identify key financial challenges you have faced and
suggest strategies to address them.
5. Discuss the reasons why it is important for new
business entrepreneurs to understand and comply with
different regulatory requirements in Uganda.
10/6/2015 Module 4: Session 1 14
Group Activity
THE END
Q & A
10/6/2015 Module 4: Session 1 15
doc_522206652.pdf
On this paper talk module four session one starting up a business.
Module Four
Session One
Starting up a business
Module 4: Session 1 1 10/6/2015
1) Introduce module four
2) Recap of the introductory module -
understanding the concept of business
3) Identify challenges faced in raising startup
capital for a business.
4) Discuss strategies for improving a Small
Business Enterprise
5) Discuss business survival strategies
10/6/2015 Module 4: Session 1 2
Objectives of the Session
? Builds on the three previous modules
? Recaps the rationale for starting a business
? Examines the concept of risk in a business.
? Introduces the trainee to interpretation of performance
and position statements
? Reviews financial management policies and ethical
issues in financial management.
? By the end of the module trainees will be able to
understand the essence of a business, the content and
meaning of financial statements and appreciate policies
that guide them and the ethical challenges to a finance
manager.
10/6/2015 Module 4: Session 1 3
Introduction of Finance
and Risk Management module
? The nature of business enterprises; justification
and limited liability preference.
? Business planning including budgetary planning
and control, the budget as a yardstick for
measuring and control of operations and use of
KPIs.
? Performance measurement by profitability and ROI
? Performance measurement by cash, NPV, IRR and
cash flow forecasts, short and long term.
10/6/2015 Module 4: Session 1 4
Recap of earlier modules
? A business is an organization engaged in
the trade of goods, services, or both to
consumers and other businesses.
? In capitalistic economies, businesses are
privately owned, they are administered to
earn profit and to increase the wealth of
their owners.
10/6/2015 Module 4: Session 1 5
Understanding a Business
?Economic reasons – wealth creation
?Self employment
?Financial Independence
?Adventure
?Passion
?Convenience – work at home, flexible hours
10/6/2015 Module 4: Session 1 6
Reasons why people start
own businesses
• Most small businesses fail.
• Unproven business partners and model :
Investors feel safe when they can see
historical operating results
• Lack of coherent business plan.
• Inability to effectively communicate.
• Lack of ready investors.
10/6/2015 Module 4: Session 1 7
Why is it so hard to
raise capital for starting a new business?
?Cash constraints
?Poor planning
?Poor management
?Bad Idea
?Ignoring risks in assessment of
opportunities
?Misfortune
10/6/2015 Module 4: Session 1 8
Reasons why most
small business fail
?Marketing mix: (place, price, promotion, research
& surveys)
?Technology: Use technology that you can to
market yourself and get the word out.
?Staffing relationship: Offer flexible schedules and
terms and benefits, e.g. health insurance
?Analysis of performance: When you run a small
business, there is often little time to analyze what
you are doing.
?Cash flow: Will make or break you
10/6/2015 Module 4: Session 1 9
Strategies for improving
a small scale business enterprise
? Organizational Change: Changes in
management structure, key employees.
? Small Business Repositioning: An
evaluation of a small business with declining
profits, customers and sales can reveal a
need to reposition business functions
? Decrease Overhead: In times of financial
stress, small companies should look to slash
costs and recoup sunk expenses.
10/6/2015 Module 4: Session 1 10
Turnaround strategies for a
declining small business
? Entrepreneurs must take care to ensure
that they are compliant with the laws.
? Avoids default penalties and unnecessary
prosecution that is diversionary
? Licensing and business-regulation
requirements prevent other people from
attacking your business
10/6/2015 Module 4: Session 1 11
Why is it Important for business
owners to comply with regulatory
requirements?
? Considerations: A review of local
regulations prior to getting into business
? Discrimination: Avoid discriminatory
practices that are unconstitutional and
unlawful.
? Safety: Observance of Occupational Safety
and Health
10/6/2015 Module 4: Session 1 12
Compliance Cont’d.
? Watch your revenue and cash - Understand how
much capital you have in the bank at all times, and
realize when you will need to borrow to stay in
business
? Stay updated on competition - Make sure you know
what your competition is up to, and be ready to move
in when they move out.
? Stay in shape: When your company hits tough times,
you will be working more hours and trying to do more
with less rest.
10/6/2015 Module 4: Session 1 13
Business survival strategies
1.Explain what a business is and suggest reasons for
starting up a business.
2. Discuss the common challenges faced in raising capital
for a new business.
3. Explain the common reasons why most businesses fail
and why you preferred to join road construction
business.
4. Identify key financial challenges you have faced and
suggest strategies to address them.
5. Discuss the reasons why it is important for new
business entrepreneurs to understand and comply with
different regulatory requirements in Uganda.
10/6/2015 Module 4: Session 1 14
Group Activity
THE END
Q & A
10/6/2015 Module 4: Session 1 15
doc_522206652.pdf