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MOHD FAIZUL BIN OSMAN

SOALAN ASSIGNMENT ENTREPENUERSHIP UMP

1.

In order to be sucessful in running a business, you must know what to avoid. Provide

an explain any 5 ways to overcome these challenges.

2. Explain any 5 question before buying a business.

3. What are the 5 critical areas for analyzing an existing business?


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JAWAPAN

a) In order to be successful in running a business, you must know what to

avoid. Provide an explain any 5 ways to overcome these challenges.

Introduction

Definition of '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.

Things To Avoid in Business

Things to avoid while starting new business

Starting a new business is a simple issue or a complicated one would depend on the way

one looks at it. If one finds it cumbersome, it is best that it is avoided and continue with

a more comfortable nine-to-fiver. Starting a business is simple for more self-motivated

people but irrespective of motivation there are certain things that one should avoid while

embarking on their path to financial freedom. Some of the most important of them are as

follows:

a. Get rich quick: A business like a human being grows slowly and steadily when

handled with care. If you think you are going to get rich overnight by starting a business

you would be surprised to know that it involves a lot of hard work and a lot of time

before It can take care of you.


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b. Staffing:When starting a new business, you will need to choose your manpower with

care. Never, repeat "never" hire your friends or family into your new business despite

their qualifications or experience.

c. Business plan: Any new business should follow a good business plan stringently.

Since the survival the business is based on the calculations made with the help of a good

business plan, never ignore it.

d. Autorun: No business runs on auto-pilot and it is necessary that you are on top of

things all the time. Any kind of avoidance will result in a downturn and there is no

business in the world that runs itself apart from "life".

e. Branding and marketing: For any business to succeed in the long run it needs a

good marketing plan with excellent branding. Marketing plans may change but branding

never should. Branding should include a perfect logo.

f. Giving up: Never give up on your business even the chips are horribly down. Never

even think of giving up. A lot of things depend on you, for example, the future career of

you and your employees.

How Entrepreneurs to overcome challenges in business

1. People: Successful entrepreneurs point to their peoplechoices as more important than

any other factor in their success. This is the There is No I in TeamPrinciple. Despite

the stereotype of the cowboy entrepreneur who rides alone, these business leaders make it

a priority to surround themselves with smart people, listen to their input, and build high-

performing teams.


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2. Financial Resources: While every entrepreneur must overcome the initial hurdle of

raising capital to start a business, high-growth entrepreneurs also face the unique challenges

of funding periods of rapid expansion. The Bird in Hand Principle of financial resources

is that high-growth entrepreneurs are extremely creative and resourceful at fundraising, as

well as very skilled at running lean, efficient operations.

3. Business Networks: Successful entrepreneurs maintain vibrant personal and professional

networks that support their companys growth. The It Takes a VillagePrinciple is that

expert entrepreneurs view customers, suppliers, and sometimes even competitors as co-

creators of their market, vital to achieving and keeping their place in the market.

4. Environmental Jolts: The Lemonade Principlerefers to the way high-growth

entrepreneurs recoverfrom major outside shocks that threaten their business.

High-growth entrepreneurs do not focus on predicting or preventing shocks; rather, they take

setbacks as par for the course, continually reacting, adjusting, re-tooling, and moving

forward.

It show how founders of fast-growth companies must continually balance and adjust as their

companies grow and change. These entrepreneurs learn to manage and leverage the tensions

between idealism and pragmatism, control and delegation, and confidence and humility. They

exhibit an extreme responsiveness to market insights and a willingness to tryand discard, if

necessarynew business models. Yet, at the same time, they are uncompromising and

persistent in the pursuit of their vision and values.


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5 WAY TO OVERCOMING CHALLENGES IN BUSINESS

Realize that Failure Is Always an Option

Too many entrepreneurs try to establish a small business strategy that does not include failure

as an option. The problem that these business owners encounter is any and all unforeseen and

unpredictable external actions that may affect their strategies.

Weather, economic downturn, serious illness: all these are examples of issues that could

affect a small business strategy and cause it to fail. If you recognize that failure is an option,

you can be more prepared to overcome them when they happen.

Be Persistent

Thomas Edison "failed" to invent a suitable and practical light bulb thousands of times. When

asked if he felt like a failure and should give up, Edison said, "Young man, why would I feel

like a failure? And why would I ever give up? I now know definitively over 9,000 ways that

an electric light bulb will not work. Success is almost in my grasp."

Would you consider Edison a success? Absolutely! His persistent efforts paid off and created

a timeless, universal product used in all households and businesses. Don't think that failure is

a reason to give up. Be persistent.

Review and Learn

Like Thomas Edison, you can learn what "not" to do in the future by reviewing a small

business strategy that did not work. It is always helpful to keep a log of your new business

strategies so you know what actions you took along every step of the way. Managing

challenges means reviewing steps and making changes as appropriate to meet the goal you

have set.


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Ask for Help

A small business owner should never be too proud to ask for help when managing challenges.

Use a mentor. Hire a consultant. Those with experience and wisdom and are willing to share

are some of the best resources that a small business owner can use.

Review Your Successes

Sometimes an entrepreneur can become discouraged due to failing a small business

challenge. It never hurts to sit down and review things that have gone right in the past. What

small business challenges did you overcome previously? Did you win an award for best

business practice? Did you outgrow your first office and are now occupying double the

space? Did you form a successful joint venture with another business owner for a specific

event?

Look back at what you have accomplished, and you will be encouraged to continue striving

to overcome failures.

Remember, failure is always an option. Be encouraged. Be persistent. Ask for help. And keep

in mind that you have succeeded in the past and will do so again. With these tips, you can rise

to the occasion and continue to grow your small business.


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JAWAPAN NO 2

Explain any 5 question before buying a business.

1.

Find out a little about the business.

Question: Could you please tell me about your business?

The answer you are looking for is a very crisp, clear and focused answer to

demonstrate that the Seller really knows what business they are in.

If the current owner cannot explain the business in a one-sentence answer it may

simply mean that there is a huge opportunity to market the business.

What you will find is that the more profitable and focused the business; the clearer the

owner is on what business they are truly in.

2. Why are they selling?

Question: Why are you selling (their answer and the REAL reason)?

There are many reasons why someone sells a business: retirement, illness, boredom,

new opportunities, chance to cash out, divorce, relocation, etc.

Whatever their reason, there has been a conscious decision made that they no longer

want it. Whatever the reason you must do some probing. What the Seller tells you

may not be the reality of the situation.

You must always be on guard for inconsistencies in their commentaries so asking

additional questions may solicit a comment that will cause you to think in another

direction or perhaps provide cause for concern.


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3. The history of the business.

Question: What is the History of the business?

It is interesting and important to understand how a business has evolved and at what

stage in its development it is currently positioned.

The longer it has been around the more you will want to review how it is positioned

amongst the competition. Has it gained or lost ground? What is the market.s

perception of the business? Has it stayed true to its plan or has it changed over time?

Is it more profitable now than in the past?

4. Check the seller.s background.

Question: What is your background?

Generally, this will indicate what area of the business they focus on the most.

Operators tend to focus on operations and those with a marketing background will

focus on that area.

It is interesting to see how well these parts of the business run given their background.

5. Is the business employee-driven?

Question: How much vacation do you take?

You are no t asking this because you want time off even though you haven.t started

yet. In fact, it.s the opposite. If they tell you none to less than two weeks a year then

you know that the business is clearly not employee driven.

This can be due to many reasons such as: lack of trust, poor employees, the owner is

or thinks they are.the business., workaholic syndrome or, the Seller just does not

believe that the business can survive, let alone thrive, without his/her presence. Again

you are probing.


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JAWAPAN 3

What are the 5 critical areas for analyzing an existing business?

Key Questions to ConsiderBefore Buying a Business

a) Is the right type of business for sale in the market in which you want to operate?

b) What experience do you have in this particular business and the industry in which it

operates?

c)

How critical is experience in the business to your ultimate success?

d) What price and payment method are reasonable for you and acceptable to the seller?

Why does the owner want to sell.... the real reason?

a) What is the physical condition of the business?

b) What is the potential for the company's products or services?

Customer characteristics and composition.

Competitor analysis.

c)

What legal aspects must I consider?

d)

Is the business financially sound?

1. Customer Results

As you review the customer results in your business performance, you will find that through

this operational analysis there is going to be an investment result with sufficient care for the

customer satisfaction. The main thing is that no matter the cost of the service or product, all

customers require equal treatment. Therefore in order to maintain a good level of customer's

satisfaction, you need to analyze these results to maintain a positive profit growth.


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2. Strategic and business results

With strategic and business results you are going to be analyzing if the current investment

level you are working with is enough to get the job done. Is the level of money you have

going out is equal to that of your competitors, and if there is something you can do in order to

increase this level off strategic efforts in a cost effective manner.

3.

Financial performance

The operational analysis is the report you will be reviewing. This requires that there is a

review of the rationality and cost efficiency of the steps that are being taken. Is the cost

comparable to the amount of the performance you are getting from that cost? This report will

help to find the solutions for questions of the financial nature. The corrective actions

necessary to increase the performance at a lower cost within specific limits will be what this

analysis helps to provide.

4.

Innovation

The innovation area of analyzing the businesses performance will provide a qualitative result

for the areas of customer results, business results, and the financial performance thereof. You

will find that the solutions that will result are going to help to resolve several issues in these

three areas.

5. Critical thinking

When reviewing the different areas of the business performance reports you will find that

each area holds specific value in the process of creating a higher level of professional results.

This result will show itself in the overall business profit and success.

With businesses running on such a highly competitive level, it is no wonder that the process

of analyzing your business results is highly detrimental. When analyzing these different areas

there is a higher level of recognition in areas of business. This is also where you will be able

to create a better performance plan over time.

A critical look at the analysis of each of these areas will provide the steps necessary to

improve customer satisfaction, production, sales and marketing practices. This is a time when

it may take a more critically thinking mind to see what the results really hold, and what it will

take to increase sales, decrease cost and create a much more efficient process.

There are different ways that you can analyze these are of your business. You can track and

run the results yourself. There are companies that will help you to track this information.

Finally there are also software options for running the results for your business analysis.

What ever the option is you choose, remember that the results are only as good as the process

you are running. Using this information correctly will help to empower your small business

to grow in profitability and success.


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REFFERENCES

1. http://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_per

formance_024428.html

2. WWW.wikipedia.com

3. www.quickmba.com

4. http://www2.econ.iastate.edu/faculty/stone/Chapter5BuyingaBusiness.pdf
http://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.htmlhttp://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.htmlhttp://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.htmlhttp://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.htmlhttp://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.htmlhttp://www2.econ.iastate.edu/faculty/stone/Chapter5BuyingaBusiness.pdfhttp://www2.econ.iastate.edu/faculty/stone/Chapter5BuyingaBusiness.pdfhttp://www2.econ.iastate.edu/faculty/stone/Chapter5BuyingaBusiness.pdfhttp://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.htmlhttp://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_performance_024428.html

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