Business Management Module 1

Empowering
African Entrepreneurs
THE TEF BUSINESS MANAGEMENT

TRAINING PROGRAMME
MODULE 1
STARTING YOUR
BUSINESS
1 www.tonyelumelufoundation.org
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01 Defining your Enterprise
02 Identifying Problems and Opportunities

CONTENTS
TABLE OF
03 Understanding the Competitive Landscape/Business Environment
04 Marketing Fundamentals and Principles
05 Marketing in Digital Age
06 Becoming a Successful Start-Up
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STARTING YOUR BUSINESS
MAIN
OVERVIEW
OBJECTIVES
Lack of basic understanding of business principles before commencement are

At the end of the training participants will be able to;
major causes of business failure. Starting your business module is a beginner’s
 Define an enterprise as part of the preparations for starting a business.
or foundational pack prepared to assist the entrepreneur understand the
 Identify challenges confronting any business as well as the opportunities
fundamental issues in starting a business and the major arears of attention and
embedded in the business.
concentration by the entrepreneur to ensure a successful star-up and perhaps
 Understand the competitive landscape, including the business environment and
sustainability of the business.
how to cope with the varying factors.
 Understand the fundamentals and principles of marketing various digital
marketing channels to improve sales and bottom-line.
 Learn how to conducting Market Research and Intelligence and avoid Small
Business Mistakes that could collapse a business.
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1.0 - DEFINITION OF ENTREPRENEURSHIP
• Let us look at the Definitions of Entrepreneurship: •The second aspect; entrepreneurship requires investment of time and
• Entrepreneurship is the process of creating something new with value by efforts. Time and efforts are two of your most valuable assets in
devoting the necessary time and effort, assuming the financial, social and entrepreneurship and by targeting them in the right way, you can help
psychological risks and receiving the resulting rewards of monetary and
your business to grow without having to stretch yourself financially.
personal satisfaction and independence.
•The third aspect of this definition is the reward. The most important
This definition emphasized four aspects of entrepreneurship thus:
part of this reward is independence, followed by personal
• The first aspect; entrepreneurship involves the creation process. The
satisfaction. This reward could also be in form of profits for
creation must add value to the entrepreneur and value to the target
businesses or compliance for Non-profit entrepreneurs.
audience or market for which it is developed.
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DEFINING YOUR
ENTERPRISE
The final aspect of this definition is ability to assume the necessary risks. Entrepreneurs
must decide to act even in the face of uncertainty. Actions required to create value, new
products, new services and new ventures, take time and efforts and the future is
unknowable, hence action is inherently uncertain.
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STARTING BUSINESS
TIPS
Identify Your Talents:

Consult with Colleagues, Mentor, Friend, or Family
Research and More Research
Analyse Your Financial Situation
Know Yourself
Keep Records
Discuss Lifestyle Change
Find All Necessary Resources
Knowledge-Economy and Attitude
Let us look at some other Starting Business Tips for a prospective
entrepreneur which are:
Identify your Talents
Brainstorming.
Analyze your resources
Research
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GENERATING BUSINESS
IDEAS
How do you then generate business ideas?  II. Pick Up on Market trend- The world around us is changing every
second, so an entrepreneur should tap into how work and home lifestyle
 Let us examine few scenarios in idea generation capable of are changing, as they come with needs and fresh opportunities.
provoking some good thoughts for entrepreneurship:
 III. Research New Markets, Niches and Opportunities- In business,
 Broaden your perspective- Entrepreneurs look around them and appropriating someone else idea is usually called ‘best practice sharing’ or
ask ‘what-if-questions’. Take note of what works and special notes ‘bench marketing’. Businesspeople do it all the time, copying an idea but
of experiences you have with products and services. Seek out new trying to make that idea better. You can find an idea that has worked in
experiences, new experiences generate ideas and ideas are the another country and transfer it home. An example is UBER Taxi that was
main drivers of entrepreneurships. founded in the USA, but now the business model for taxi in many
continents.
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2.0 - IDENTIFYING PROBLEMS AND

OPPORTUNITIES
Recognizing and overcoming the common pitfalls associated with growth is essential if your business is to continue to grow and thrive. You need to ensure that the
step you take today do not themselves create additional problems for the future. As a business grows, different problems and opportunities demand different
solutions.
COMMON CHALLENGES IN NEW BUSINESSES
 The following highlights some of the risks that most commonly affect
 Planning - The plan you made a year ago may not be necessarily right
growing businesses and outlines what you can do about them:
for you now. Market conditions continually change, so you need to
 Keeping up with the market - Market research is not something you do
revisit and update your business plan regularly.
as a one-off when you launch your business. Business conditions change
continually, so your market research should be continuous as well.
 Information sources - Published information can provide useful
Otherwise, you run the risk of making business decisions based on out-of-
date information, which can lead to business failure. insights into market conditions and trends. As a growing business,
your own experience can be even more valuable. You should be able to
build up an in-depth picture of what customers want, how they behave
8
and which of your marketing approaches work best.
www.tonyelumelufoundation.org
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COMMON CHALLENGES IN NEW

BUSINESSES
 Cash flow and financial management - Good cash flow control is  Skills and attitudes - The abilities that can help you launch a business are
important for any business. For a growing business, it is crucial. not the same as those you need to help it grow. The chances are that you
will need training to learn the skills and attitudes required by someone who
 Problem solving - New businesses often run-in perpetual crisis mode. is leading growth.
Every day brings new challenges that urgently need resolving and
management spends most of their time trouble shooting.
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COMMON CHALLENGES IN NEW

BUSINESSES
 Welcoming change - Complacency can be a major threat to a growing business. If

you will continue to be successful simply because you have been in the past is very
unwise. Regularly revisiting and updating your business plan can help remind you
of the changing market conditions and the need to respond to them.
 The right systems - All businesses produce and rely on large volumes of
information - financial records, interactions with customers and other business
contacts, employee details, regulatory requirements and so on. It is too much to
keep track of - let alone use effectively - without putting the right systems in place.
Seize the Opportunity
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3.0 - UNDERSTANDING THE COMPETITIVE LANDSCAPE & BUSINESS

ENVIRONMENT
DO YOU KNOW THAT?
 Every business is affected by the competition and the  Developing a comprehensive awareness of broad-based
environment in which it operates, therefore understanding the environmental forces will help the entrepreneur identify any external
firm’s competitive landscape and environment is an important factors that could potentially impact the future of your organization.
step in the planning process.
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THE THREE “W”
The Competitive Landscape:

There are a few questions that will help you analyze your competitors. You
should treasure tough competitors because they help you stay on your toes all
the time.
Who are your competitors? A competitor is Who are your competitors

anyone or organization that can satisfy the needs
of your customers now or in future.
What do they want?

What do the competitors want? What
competitors want depend on their business
objectives which could be short term or long-term
profits goals What can they do?
What can competitors do? They will consistently try

to offer better customer service, product quality and
marketing.
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THE COMPETITIVE LANDSCAPE & BUSINESS

ENVIRONMENT
The Competitive Landscape 1/1
Economic Forces - Economic projections are important in Governmental Factor - An entrepreneur should be on top of changes in
entrepreneurship, as they affect your business, your industry, your Government policies and regulations, Legal developments that can affect their
suppliers and your customers. Consider the impact of economic business. An example, is that a certain Government recently increase import and
conditions over the period due to the Coronavirus pandemic. export tax, as well as other taxes from 5% to 7.5%. These changes can occur at the
Businesses are battling with lost revenue and disrupted supply
Federal, State and Local Government levels. If similar occurrences are witnessed in
chains as factories shutdowns and quarantine measures spread
your country, how would you be able to keep your business running without
across the globe, restricting movement and commerce.
negative consequences.
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THE COMPETITIVE LANDSCAPE & BUSINESS
ENVIRONMENT
The Competitive Landscape:
Technological Forces - Failure to monitor Demographic Forces - These are trends in population
and address the major technological
characteristics such as age, ethnic makeup, education,
innovations may adversely affect a firm’s
family, and gender distribution. The changes in demographic
competitive edge, particularly if competing
factors can have a significant impact on an emerging
firms use technical improvement.
business, particularly if they indicate the developing trends.
Changes can affect demand for a company’s product and
Labour- for a company’s ability to hire employees.
Global Forces - Changes in the global environment offer tremendous opportunities and potential threats for businesses. The
importance of accessing global markets has become more emphasized as a result of the development of satellite communication,
cheaper and faster modes of transportation, the privatization of several overseas businesses and economic alliances among
countries.
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4.0 – MARKETING FUNDAMENTALS AND

PRINCIPLES
MARKETING
CONCEPT
There are four marketing concepts that companies will utilize in their marketing Marketing Concept - This management orientation says the major
objectives. All of these aims to achieve profits and objectives, but the focus and
purpose of an organization is to identify consumer needs and then
means by which they do so will differ. They will typically follow one of these
four major concepts: adapt the organization in a way that will satisfy the customers’ needs
 Product Concept - This management orientation says that if you build a more effectively and efficiently than competition.
quality product and set a reasonable price, very little marketing effort is
Societal Concept - This management orientation focuses on
needed to sell it. The product generates the demand "build it, and they will
satisfying consumers’ needs and demonstrating long run concern for
come“
societal welfare in order to achieve company objectives and attend to
 Selling Concept - This management orientation says that consumers will not
normally buy enough of a product unless it is aggressively promoted to them. its responsibilities for society. The idea is to find a balance between
social welfare, consumer needs, and company profits.
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MARKETING MIX
There are four marketing mix variables that are associated with a product.  Price - The price variable includes not only the list price, but all other pricing
These must be taken into consideration when making any decisions factors associated with a product. These may include discounts, allowances,
regarding marketing activities. These are often known as the "Four P's" payment options and periods, and credit terms.
in marketing. They are:
 Place - Place deals with all distribution and location aspects of a product. How
 Product - This variable described all factors relating to the actual
and what are the products available to consumers? These may include
product visible to the consumer. These may include things such as
assortments, channels, coverage areas, locations, and inventories.
quality, features, options, style, packaging, brand, sizes, labels, variety,
and warranties.
 Promotion - Promotion is all efforts by a company to make

publicize a product and make the consumer aware of it. Efforts
might include advertising, personal selling, sales, public relations,
or internet activities.
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MARKETING FUNCTIONS MARKETING

MANAGEMENT
The marketing process performs certain activities as the goods and services move from the producer to the consumer. All these activities or
jobs are not performed by a single firm, but by different organization that constitute the entire marketing chain. The major activities are listed
below
Pricing
 Selling
Information
 Buying and Assembling Selling Marketing
 Transportation
 Storage
The 7
 Standardization and Grading functions
of
Promotion
 Financing Marketing Distribution
 Risk Taking
 Market Information
Product Financing
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CONCEPT OF MARKETING MIX, SEGMENTS, PENETRATION &
POSITIONING
Marketing Segmentation:
Today, Segmentation, Targeting, and Positioning (STP) is a familiar  Identify bases for segmentation
strategic approach in Modern Marketing. It is one of the most applied  Determine important characteristics of each
market.
marketing models in practice.
The STP model is useful when creating marketing communications

plans since it helps marketers to prioritize propositions and then Product Positioning
Develop detailed product positioning for selected
develop and deliver personalized and relevant messages to engage with segments
different audiences. Develop a marketing mix for each selected
segment.
This is an audience rather than a product-focused approach to

communications which helps deliver more relevant messages to Market Target
commercially appealing audiences. The diagram below shows how Evaluate Potential and Commercial
attractiveness of each segments
plans can have the flow from Audience options > Audience selection Select one or more segments
> Production positioning.
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CONCEPT OF MARKETING MIX, SEGMENTS, PENETRATION &
POSITIONING
Product positioning- is the point in the segmentation process where the marketer
creates the product offering in a way that hits the consumers mind and separates the
offering from competition
Determine Current Determine your Identify your unique selling Create a brand positioning Test your brand positioning
brand positioning competition proposition statement statement
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TARGET AND MARKET

SEGMENTATION
 Target market is the group or groups of customers for which the marketer will direct
attention. This group is determined after thorough segmentation and analysis of the
market.
 Market segmentation is the act of subdividing the market into a group or groups of
people who have similar needs within the group, but dissimilar needs across the
groups. An example would be people wanting cars, but different types of cars. The
different types of cars may be luxury, sports, or SUV's.
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CONDUCTING MARKET RESEARCH AND

INTELLIGENCE
Marketing research is the process of collecting, analyzing, and reporting marketing information that can be used to answer these questions or solve
problems to improve a company's bottom line. It can help many discover the basic and intriguing tasks needed to help you succeed in your
business endeavor
. The following tasks can be undertaken and resolved.

Developing product ideas and designs
Determining if there is a demand for your product
Identifying market segments for your product
• .
Making pricing decisions
Evaluating packaging types
Evaluating in-store promotions
Measuring the satisfaction of your customers
Measuring the satisfaction of your channel partners
Evaluating the effectiveness of your Web site
Making marketing channel decisions
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HOW CAN EFFECTIVE RESEARCH GROW YOUR BUSINESS ?

1/1
The following are four reasons effective research can help your business:
 Market Research Focuses the Business on the Customer - Simply put, market
research is the process of analyzing data about a market, product, or service. And
the most obvious benefit is its ability to help you understand your customer. Who
are they? What do they want? What do they expect? Once you understand your
customer’s needs, you will be able to tailor your business to meet them.
 It Grows Your Business - All small business owners want to grow  It Helps Understand Your Competition - Knowing your competitors and what they
their company—but many are unsure where to begin. Research is your offer can help make your products, services, and marketing stand out. Sure,
best tool for any type of product development, launch, or business research enables you to set your prices competitively, but it also helps you learn from your
expansion. competition—and do things better.
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HOW CAN EFFECTIVE RESEARCH GROW YOUR

BUSINESS? 1/2
 It Enables You to Test for Success - Need help judging whether a new
product or service will connect with your customer? Research is the
most effective way to test out ideas before you decide to go full-throttle
with them. Through metrics, small business owners are able to see which
concepts, campaigns and messaging are resonating best with target
customers
 It Ensures Your Relevance - In order to remain successful, all businesses

need to anticipate and react to change in order to stay relevance. By
researching the evolving needs of consumers, and analyzing your
competition’s reactions, you are securing longevity and relevance in the
market. Market research allows business owners to stay innovative and
successful—and change with the times.
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MARKETING IN DIGITAL
AGE
Digital marketing, also known as online marketing, is an umbrella term for all marketing and engagement activities done through online media channels. The role of
digital marketing is to help you get found, get noticed, get leads, and then turn those leads into returning customers.
 The following are the digital marketing channels and strategies

which every organization should learn and adopt and adapt;
 Websites (Content Marketing), Email Marketing, Social Media,

Organic Search (SEO), Display Ads , Mobile Marketing, Affiliate
Marketing, Pay-Per, Click (PPC) Advertising, Instant Messaging
Marketing.
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TRENDS IN DIGITAL AGE
Trends to Consider:
The average consumer is exposed to about 10,000 brand messages a day.
• Many consumers look at a company’s website when choosing a service provider or

product.
• At any given time, consumers are shopping for something.
• Many people go online to find products and services.
• Many online experiences begin with a search engine.
• Many consumers trust online reviews as much as they trust personal

recommendations and people look up the location of a business on Google Maps.
• One of the fundamentals of marketing and advertising is to be where your target

audience is.
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IMPACT OF SOCIAL MEDIA ON MARKETING (SMM)
An Overview
 Social media are channels for reaching out to customers. Most

businesses employ the use of social media in reaching out to their
customers, clients and partners due to its possibility of wider reach.
 A growing business must leverage on it to sell its products to the

wider market. One of the favorable arguments for the use social
media over the use of basic, traditional communication media lies
in its ability to measure the reach it covers and reach prospects
widely. An advertisement ran on Facebook, for instance, gives
insights on the number of engagements, conversions and general
insight. One can hardly tell the number of TVs switched-on
listening to an Ad.
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SMALL BUSINESS
6.0 - BECOMING A SUCCESSFUL START-UP MISTAKES
We reiterate that regardless of the motive of becoming an The major small business mistakes are:
entrepreneur, a serious and sound minded entrepreneur must possess
and exhibit the following traits.  Holding on to an idea for too long
 No business and marketing plans
 Passionate and unrelenting focus
 Not Knowing Your Customer
 Firmness  Ignoring Your Cash Position
 Time Consciousness  Not Caring About Employees
 Relationship  Confusing Likelihood with Reality

 Giving-Up
 Patience and Consistency
 Confidence and Resolute  No Sales Budget Plan

 Doing It Alone
 Perseverance
 Having No Back-Up or Mentor
 Considerate
 Over Trading
 Compliance with Regulatory Authorities.
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RESOURCES
STAGE MODULE TOPIC
BIGINNER’S COURSES MODULE 1 STARTING YOUR BUSINESS
RESOURCES FOR MODULE 1

Exercise 1 Explain the factors that influenced your decision to become an entrepreneur?
Exercise 2 Take a critical look and consider the environmental and competitive landscape of your country and discuss with a mentor that dream
business proposal you will consider profitable to venture into.
Exercise 3 Give a comprehensive analysis of a business venture you have understudied over the years in which its operational methodologies and
successes appeals to you to the extent that you are contemplating venturing into same business.
Discuss step by step what you need to do to succeed in that same business.
Exercise 4 Explain the factors that influenced your decision to become an entrepreneur?
Exercise 5 A certain Government recently increase Value Added Tax (VAT) from 5% to 8%. That action was both economic, as well as government
policy. These changes are to be implemented at the Federal, State and Local Government levels. If similar occurrences are witnessed in
your country, how will you position take advantage of the policy and keep your business running without any serious negative
consequence.
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RESOURCES
Case Study 1 A case study of two same business line operating in same regulatory and environmental landscape with extreme varying degrees of success. Further
investigation revealed that Company A complied with all regulatory issues but did a deep analysis on some of the challenges major businesses in same
sector are facing and, in the end, it was revealed that Company A discovered some hidden opportunities amidst the challenges and quickly implemented.
Company B resulted in using a pressure group to challenge the unfavorable business regulatory environment which took a long time to be addressed by
the authorities before Company A regained its profit status –
As a business owner faced with similar challenge in your country or region; what step would you have taken. How and why?
Case Study 2 Entering a rapidly growing market where there is little competition is always very attractive and full of challenges. There is high demand for the
product, or the service and the company constantly make good profits until the competitors arrived. But when this happens, defend your view on how
the company can maintain its profit level using any or combination of the underlisted parameters?
1. By adopting a more aggressive marketing strategy?
2. By lowering prices? By expanding?
3. By having a reliable brand name? Which is the most important of all these?
Further http://www.csmonitor.com/2002/0702/p18s03-hfks.html, www.intercom.com/blog/videos/marketing-the-job-to-be-done

Reading Link
http://www.ksgcase.harvard.edu/content/about the case study
http://referenser.apt.no/volkswagen/roulette, http://wearesocial.net/beanzforgrownupz
To read the extended lesson content! Please click the link below
Beginners Module 1- Starting your Business
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Thank you!
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THE TEF BUSINESS MANAGEMENT

01 Defining your Enterprise

02 Identifying Problems and Opportunities

03 Understanding the Competitive Landscape/Business Environment

04 Marketing Fundamentals and Principles

05 Marketing in Digital Age

06 Becoming a Successful Start-Up

STARTING YOUR BUSINESS

Lack of basic understanding of business principles before commencement are

1.0 - DEFINITION OF ENTREPRENEURSHIP

unknowable, hence action is inherently uncertain.

Identify Your Talents:

2.0 - IDENTIFYING PROBLEMS AND

COMMON CHALLENGES IN NEW BUSINESSES

build up an in-depth picture of what customers want, how they behave

COMMON CHALLENGES IN NEW

management spends most of their time trouble shooting.

COMMON CHALLENGES IN NEW

 Welcoming change - Complacency can be a major threat to a growing business. If

Seize the Opportunity

3.0 - UNDERSTANDING THE COMPETITIVE LANDSCAPE & BUSINESS

DO YOU KNOW THAT?

THE THREE “W”

The Competitive Landscape:

Who are your competitors? A competitor is Who are your competitors

What do they want?

What can competitors do? They will consistently try

THE COMPETITIVE LANDSCAPE & BUSINESS

The Competitive Landscape 1/1

The Competitive Landscape:

4.0 – MARKETING FUNDAMENTALS AND

social welfare, consumer needs, and company profits.

 Promotion - Promotion is all efforts by a company to make

MARKETING FUNCTIONS MARKETING

The STP model is useful when creating marketing communications

This is an audience rather than a product-focused approach to

TARGET AND MARKET

different types of cars may be luxury, sports, or SUV's.

CONDUCTING MARKET RESEARCH AND

. The following tasks can be undertaken and resolved.

HOW CAN EFFECTIVE RESEARCH GROW YOUR BUSINESS ?

HOW CAN EFFECTIVE RESEARCH GROW YOUR

 It Ensures Your Relevance - In order to remain successful, all businesses

 The following are the digital marketing channels and strategies

 Websites (Content Marketing), Email Marketing, Social Media,

TRENDS IN DIGITAL AGE

The average consumer is exposed to about 10,000 brand messages a day.

• Many consumers look at a company’s website when choosing a service provider or

• At any given time, consumers are shopping for something.

• Many people go online to find products and services.

• Many online experiences begin with a search engine.

• Many consumers trust online reviews as much as they trust personal

• One of the fundamentals of marketing and advertising is to be where your target

IMPACT OF SOCIAL MEDIA ON MARKETING (SMM)

 Social media are channels for reaching out to customers. Most

 A growing business must leverage on it to sell its products to the

 Relationship  Confusing Likelihood with Reality

 Confidence and Resolute  No Sales Budget Plan

RESOURCES FOR MODULE 1