TESEUS - Training on Entrepreneurial Skills for EU Start-ups

Evaluate Entrepreneurial Opportunities


COU_8_EN  

 Title
Evaluate Entrepreneurial Opportunities

 Keywords
Start-up Europe, Entrepreneurship, Managemen

 Author
IDP

 Languages
English

 Objectives/goals
In this module, you will learn about the lifespan of a start-up, Strategy and Desion Making tools and the basics of finance.


 Description
At the end of this module, you will be able to:
• Identify the SWOT analysis potentials
• Start to work on your business idea
• Understand the dynamics behind credits and loans


 Contents in bullet points
1. EU Tools and services for entrepreneurship
1.1. Strengths, Weaknesses, Opportunities, Threats: A SWOT Analysis Approach
1.1.1. What does SWOT stands for?
1.2. Finance and Credit Pills for Startuppers
1.2.1. What is a Financial Plan?
1.2.2. The requirements of a Financial Plan
1.2.3. ROI & Maturity definitions
1.3. Where It All Starts: working on your own Business Idea
1.3.1. What is a Business Idea?
1.3.2. Brainstorming, Mind Maps and Painstorming
1.3.3. The definition of a business opportunity
1.4. The Chronicles of a Start-up: From Genesis to Foreign Markets

1.4.1. The Network of support services

1.4.2. The competitiveness of EU Start-ups beyond European borders






 Contents


 Evaluate Entrepreneurial Opportunities

Strengths, Weaknesses, Opportunities, Threats: A SWOT Analysis Approach


  What does SWOT stands for?

Strengths: “What we can do” - both intangible (aka Best Practice) and tangible
Weaknesses: “What we can’t do” - aka Achilles’ Heel. “Even if we are good in something, are we as good as the others? Etc.”
Opportunities: “Something to be close to” - if exploited in the right way might generate interesting returns for the benefit of the organization and its stakeholders
Threats: “Something to be afraid of” - new and unexpected competitors, new technologies we know very little about, new regulation laws, etc.

 

According to that, the Academic world suggests to operate according two short main tactics both deriving from the same strategy.

•Invest the best competences and resources into the Opportunities and make the best out of them
•Turn the Weaknesses into motivating challenges

 

The SWOT Analysis might be the answer to typical organizational doubts like: “should we undertake this investment?”; “should we engage the production (design, engineering, and so forth) of this new product?”; etc. 

 

 

 
 


  Let’s check what you’ve learned…

1) SWOT Analysis can be applied…

a)To an entire company or organisation
b)To individual projects within a single department
c)Both

 

2) What SWOT analyses are used for?

a)To determine how closely a business is aligned with its growth trajectories and success benchmarks
b)To keep financial aspects under control
c)None of the above
 
3) SWOT analyses can be applied just as an overview of your business

T/F

 

4) Two stages of action you should take upon completing a SWOT analysis are: match your strengths with your opportunities and try to convert weaknesses into strengths

T/F



  And the correct answers are…

1) SWOT Analysis can be applied…

a)To an entire company or organisation
b)To individual projects within a single department
c)Both

 

2) What SWOT analyses are used for?

a)To determine how closely a business is aligned with its growth trajectories and success benchmarks
b)To keep financial aspects under control
c)None of the above
 
3) SWOT analyses can be applied just as an overview of your business

T/F

 

4) Two stages of action you should take upon completing a SWOT analysis are: match your strengths with your opportunities and try to convert weaknesses into strengths

T/F



Finance and Credit Pills for Startuppers


  What is a Financial Plan?

From the very beginning (and usually for a very long time) a Start-up is a very small structure with a short turnover rate, as a consequence every Startupper needs to be very careful to ensure an appropriate return (ndr. Cash Flow) to face all the activity necessities.



  The requirements of a Financial Plan

A well done financial plan should follow few strict rules:

•It needs to be consistent with the generalities addressed by the Business Plan
SEASONALITY: those predictable and known changes/events that happens every solar/commercial year, i.e. Christmas Holidays
REALISM: being realistic means being aware of our real potential
SUSTAINABILITY: once the parameters are set, we need to make sure to keep up with them through the entire plan period
SOLIDITY: is this the best plan we can come up with? Will Investors like it? If the answer to these (and more) questions is YES, then we can be confident about the consistency of our plans
MEASURABILITY: every single voice of our plans needs to be describable in quantitative measures


  ROI & Maturity definitions

When it comes to Investors and Banks, in order to attract the greatest amount of capital as possible, the most precious data to disclose becomes a very short financial index known as ROI (Return On Investment): a very easy mathematical equation that displays the ratio between net profit and cost of investment (and indirectly the ability of a firm to generate profit).

 

This term profoundly influences the conditions of the credit, primarily in terms of interest rate (higher is the risk and higher is the rate and vice versa) and debt amortization schedule (technically known as Maturity).



  Let’s check what you’ve learned…

1)A financial plan should be made according to:
a)The seasonality of the business
b)The business plan of the company
c)Both

 

2)Why start-ups must have a good financial plan?
a)To determine how closely a business is aligned with its growth trajectories and success benchmarks
b)Because start-ups must have an appropriate cash flow to service all the needs of production or trade
c)None of the above

 

3)If the financial institution decides that the risk is lower…
a)The terms of the loan will be also more flexible and with smaller interest rate
b)The terms of the loan will be with higher interest rate
c)There will be no interest rate

 

4)One of the most important parameters for investors or banks is the period of return of investments

T/F



  And the correct answers are…

1)A financial plan should be made according to:
a)Just the seasonality of the business
b)Just the the business plan of the company
c)Both

 

2)Why start-ups must have a good financial plan?
a)To determine how closely a business is aligned with its growth trajectories and success benchmarks
b)Because start-ups must have an appropriate cash flow to service all the needs of production or trade
c)None of the above

 

3)If the financial institution decides that the risk is lower…
a)The terms of the loan will be also more flexible and with smaller interest rate
b)The terms of the loan will be with higher interest rate
c)There will be no interest rate

 

4)One of the most important parameters for investors or banks is the period of return of investments

T/F



Where It All Starts: working on your own Business Idea


  What is a Business Idea?

“Working on your own Business Idea” is a concept that implies a sophisticated creative process:

 

•It refers to that great ability to visualize right now what is currently in the domain of a prospective future: reasoning in this way, we gain access to an infinite land of possibilities, each of them with their own story and their own path to be discovered

 

The development and implementation of new ideas (nothing but the two main stages of the Innovation path) lead to new frontiers of customers engagement and satisfaction, all of this thanks to the advent of something new and never experienced before.



  Brainstorming, Mind Maps and Painstorming

Practical exercise to boost you creativity:

Brainstorming Groups: let ideas storm into your brain! Make sure to: have someone who is in charge of leading the group; write everything down; don’t judge the others and try to include as many ideas as possible

 

Mind Maps: a networks of random thoughts that connect each other progressively according to a common and general reference

 

Painstorming: just a “reversed brainstorming”, think about everyday problems first and reflect on possible business solutions

 



  The definition of a business opportunity

In most cases, any innovative product comes from a new need (or from the renewal of an existing one), all we need to do is trying to intercept it with a new original solution. But How?

•Listen and observe of what people frequently complain about..
•Keep track of these observations adding some brief comments next to them

This kind of bottom-up approach is much more reliable considering how our new Business Idea builds from concrete problems observed in reality (hence solid Business Opportunities) and not just from semi-random toughts.

 

Every Business Opportunities shares three main attributes:

 

it has an intrinsic economic value
It can be a profit source
it stimulates a perception of freshness and novelty


  Let’s check what you’ve learned…

1)In how many activities process of innovation can be divide?
a)Two: the development and the implementation
b)Just one: the implementation
c)Three: the development, the implementation and the assessment

 

2)If you don’t have a team to help you create new ideas…
a)You can brainstorm on your own
b)You can’t develop new ideas on your own
c)You can proceed with the “painstorming”

 

3)A business opportunity is a possibility to satisfy market need trough a new combination of resources that will offer added value

T/F

 
4)The 3 business opportunities characteristics are: potential economic value, potential to generate profit and newness

T/F



  And the correct answers are…

1)In how many activities process of innovation can be divide?
a)Two: the development and the implementation
b)Just one: the implementation
c)Three: the development, the implementation and the assessment

 

2)If you don’t have a team to help you create new ideas…
a)You can brainstorm on your own
b)You can’t develop new ideas on your own
c)You can proceed with the “painstorming

 

 

3)A business opportunity is a possibility to satisfy market need trough a new combination of resources that will offer added value

T/F

 

4)The 3 business opportunities characteristics are: potential economic value, potential to generate profit and newness

T/F



The Chronicles of a Start-up:From Genesis to Foreign Markets


  The Network of support services

Every EU citizen has the right to set up his own business in any EU country or a subsidiary business of an existing one on the condition that it is already present in one of the territories listed above. The EU normalized some basic and common conditions.


These shared parameters can be summed as follows:

•a maximum of three working days
•a cost that is inferior to €100
•a single administrative body behind all completion procedures
•all registration formalities are concluded via online tools (thanks to the national contact points) 
•it is possible to register the new company in any country of the EU territory

Luckily, the aspiring Startuppers can count on a wide network of services: Start-up Union Club and the European Investment Project Portal (are two different portal to be considered as a bridge between demand and supply of investment) as well as the research of some other strategical economic actors (Start-up Europe Partnership).

 

In doing so:

•Key players are able to satisfy their needs (financial and non-financial) relying on a wide spectrum of multicultural knowledge
•The density and frequency of these across-border connections increases the well-being opportunities for each European citizen


  The competitiveness of EU Start-ups beyond European borders

Based on that, it is possible to remind a wide spectrum of programmes which aim to strengthen and reinforce the competitiveness of EU Start-ups beyond European borders:

•India (Startup Europe India Network, SEU-IN)
•Latin America (Startup Europe Latin America Network, SEC2LATAM)
•Africa (Startup Europe comes to Africa, SEC2A)
Eastern Countries (Armenia, Azerbaijan, Belarus, Georgia, The Republic of Moldova and Ukraine)
Silicon Valley (SEC2SV)


  Let’s check what you’ve learned…

1) The requirements to create a start-up don’t vary depending on the country

T/F

2)Why is it important to being able to find investors, customers or partners in Europe to create a start-up?
a)Because you have to beat the competition immediately
b)Because it means more growth, opportunities and jobs
c)Because a start-up can only growth with funds
 
3)Which are the programmes created to provide information and encourage start-ups to invest into the international markets?
a)SEC2SV, SEC2LATAM, SEC2A , Eastern Partnership
b)Erasmus+
c)Horizon2020, Interreg

4) Does the European Union organise matchmaking between investors, corporates, entrepreneurs and regional decision-makers?

T/F

 

 


 

 



  And the correct answers are…

1) The requirements to create a start-up don’t vary depending on the country

T/F

 

2)Why is it important to being able to find investors, customers or partners in Europe to create a start-up?
a)Because you have to beat the competition immediately
b)Because it means more growth, opportunities and jobs
c)Because a start-up can only growth with funds

 

3)Which are the programmes created to provide information and encourage start-ups to invest into the international markets?
a)SEC2SV, SEC2LATAM, SEC2A , Eastern Partnership
b)Erasmus+
c)Horizon2020, Interreg

 

4) Does the European Union organise matchmaking between investors, corporates, entrepreneurs and regional decision-makers?

T/F

 Bibliography


 Training Fiche PPT:
COU_8_EN_20191009teseusevaluateentrepreneurialopportunitiesidp[657].ppt

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