3. Where will I get seed-funding?
How do I know if my idea is a good one?
Can I protect my idea?
Should I go it alone?
Will I have tax obligations?
How do I know if an opportunity exists?
What structure should I choose?
4. What are the pre-venture
considerations?
Value
Proposition
Opportunity
Idea
Required
Resources
5. What do I look for in assessing an
idea?
New Market
New Benefit
New Technology
Replication
Providing customers with a product or service
that does not exist in their market. The product
or service may exist in other markets but is not
currently available in your market.
Provides customers with an improved product.
Basically a “me-too” product strategy that
provides a “new benefit” not offered by the
competition.
Introduced for the purpose of providing
customers with a new product that does not
exist in any market.
Is the product a replication of existing products?
That is, a “Me-too” idea – no point of
differentiation and no innovation.
6. How do I identify and analyze the
opportunity?
•
•
•
•
•
Changing demographics
Emergence of new markets
Social change
Regulatory change
New Technologies
Identification
• Is there an un-met or underserved need?
• Will your product/service
meet that need?
• Are there people willing to
pay?
• Do you have an advantage
relative to your competition?
• Feasibility Assessment
Analysis
7. tip……
in choosing a business idea, stay committed
to solving
the problem but be
flexible in finding the solution….It is
the solution that is important, not the product
or service
“If
I had asked people what the wanted, they
would have said faster horses”
–Henry Ford
8. What is your value
Benefits of the
product/service
proposition?
Differentiation
Proof of value
9. What resources are
Key
human
resources
required?
• Management
• Technical
• Marketing and
sales
Financial
Licences,
patents
and legal
protection
Physical
Knowledge
Resources
• Equipment,
materials, location,
location, location
• Knowledge economy
(intellectual capital)
• Currency of business
• Intellectual property
• Structural Capital
11. What is the venture
start up model?
creation
Document Strategic Direction
Formalize your business
Develop internal structures
and processes
Implement
Harvest
12. How should you document
your strategic direction?
THE BUSINESS PLAN
• roadmap that describes
where you’re going and
how you’re going to get
there
• guide to achieving your
goals
• tool to spark investor
interest
• helps to foresee problems
• helps employees
understand the company’s
reason for being and where
it plans to go
THE STRATEGY MAP
• Used to document the enterprise’s
primary strategic goals and
performance measures
• Diagrams that allow you to quickly
visualize your performance
THE BUSINESS MODEL
• The plan an enterprise uses to
generate revenue and make
profits. Components:
• Customer segments
• Cost structure
• Channels
• Revenue streams
13. What are the key elements of the
business plan
Financial
analysis
Management
team and
operations
plan
Marketing
strategy
Description
of your
products
and services
Market and
industry
analysis
Competitive
analysis
14. What are the key activities involved in
formalizing a business?
Choose a name
Choose a business structure
Register trademarks
Acquire licenses and permits
Register for tax payments
16. What Business structure should I
choose?
• Options
– Sole Trader
– Limited Liability
Company
– Partnership
– Co-operatives
•
•
•
•
•
•
•
•
Often, for a micro or small
business: Sole Trader
For a group of sole traders:
Partnership
Requirements to register: Fee of
approximately $2,500.00
Tax Registration Number (TRN)
Fill out BN1 or BN2 Form
(available online)
Identification
For more info:
www.orcjamaica.com
Companies Office of Jamaica – 1
Grenada Way
17. What is a trademark?
A sign that is graphically represented and capable of distinguishing the goods or
services of a person, company or legal entity from those of another.
Can be comprised of words, letters, numbers, designs, names, slogans,
symbol, colors, images, packaging, etc. or a combination of the foregoing.
18. Who needs to apply for licenses &
permits?
•
•
•
•
•
•
•
•
•
•
•
•
Ecotourism projects
Food Processing Plants
Manufacturers of edible fats & oils, packaging materials etc.
Modification of Wetlands
Aquaculture facilities
Slaughterhouse & Abattoirs
Agro-processing and processing of agricultural
Industrial projects
Solid waste treatment/disposal facilities
Housing projects
Import, export and re-export for specified plants and animals
Food Handlers
19. Who must file a tax return?
Self-employed
Individuals (including
Partners) and
employees with other
sources of Income
Partnerships
Companies
Other Bodies
20. tip…..
• persons earning under the income tax
threshold of $J507,312
annually
• businesses earning less than $J3m
annually
are exempt from tax
payments
21. How do you achieve internal
efficiencies
Document
Core
Processes
Document
Management
Processes
• Product delivery
• Customer invoicing
• Customer servicing
• Human
• Org charts, Roles and
Functions
• Technology
• Accounting – Bookkeeping systems/software
programmes
22. What are the key activities in
marketing and branding
Creating a
logo
Website?
Advertising
and/or
promotion
23. What are your funding options?
Debt Financing
Grants
Equity Financing
• Most businesses funded this way
• Institutions look at your cash flow, collateral and
the liquidity of your assets
• Establish a relationship with your banker prior to
your loan request (may factor in the decision to
lend)
• Designed to assist fuel the growth of small
businesses.
• Research is critical to identifying
• Investment in exchange for an equity or ownership
stake in the business
24. What are the pros and cons of
each funding option?
Debt
You don’t
have to give
up a stake in
the business
Grants
Equity
Free money
.
May be more
convenient
Cost of
borrowing –
i.e. - interest
Highly
competitive
May have
less “strings”
attached
Collateral
required
How you use
the funds is
strictly
defined
May be
available
quickly
Limited onetime source
of funding
Can hurt
family
relationships
25. How do banks determine whether
to loan you money?
Character
• Credit
history is
very
important!
Capacity
• What is
your track
record of
debt
repayment?
Capital
• How long
will
personal
resources
support
both you
and the
business?
Conditions
• Current
economic
conditions
Collateral
• Assets the
company
pledges as
a source of
repayment
for the loan
26. How do you achieve lasting
success?
ENTREPRENEURIAL
SUCCESS
(slide adapted)
• Timely
• Fills market gap
• People willing to pay
• Social, regulatory change
• Interest, passions,
Commitment
• Gives meaning
• Enjoyment
• Capabilities and
skills
• Good at the needed
tasks
• Dedicated,
consistent activity
