ENTREPRENEURSHIP MANAGEMENT TOOLS

What is Entrepreneurship?

An entrepreneur is a person who innovates by taking risks. In other words, the entrepreneur is the one who observes opportunities and tries to realise all kinds of risks when he finds them. Entrepreneurship is the name given to all the processes of entrepreneurs taking risks, chasing opportunities, realising and innovating. An entrepreneur should firstly determine who brings a solution to which problem and how. People pay for solutions, not products. Therefore, when there is no solution proposal, no economic value can be obtained from that initiative.

SWOT Analysis

SWOT analysis is a technique that enables a business or person to identify its strengths and weaknesses, as well as to see the opportunities it can evaluate and to analyse the threats it may face. It allows an enterprise to succeed and create a growth strategy. It is a method known and widely used by many businesses and individuals.

SWOT analysis consists of 4 main headings. These; Strengths , Weakness,  Opportunites and Threats.

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How to Make a SWOT Analysis?

Determination of Strengths

The first step in SWOT analysis is to identify and list the strengths. Some questions that can be asked when determining strengths are as follows;

  • What are the areas that are more successful compared to competitors?
  • What are the advantages?
  • Are there points that distinguish the business from competitors?
  • Do employees have high knowledge and skills?
  • Can the business develop a new product or strategy?

Identification of Weaknesses

In this section, the weaknesses and disadvantages of the enterprise compared to competitors are identified and then listed. Sample questions that can help in identifying weaknesses are as follows;

  • What are the aspects seen as weak by competitors?
  • What are the factors that reduce the efficiency or sales of the business?
  • What are the jobs that are thought to be not done well?
  • Are there personal characteristics that cause the work not to be done well?
  • Is there a lack of equipment or knowledge of employees or managers?

Identifying Opportunities

Before identifying opportunities, research should be done, the market should be well known and the environment should be well analysed. This section helps to identify existing opportunities. It also reveals how good the position in the market is and what changes need to be made. Some questions that can be asked when identifying opportunities;

  • Are there new technologies that will make the work done more efficient?
  • Are there people to be supported in the work done?
  • Is the sector developing?
  • Are there gaps in the market that competitors cannot fill?

Identifying Threats

This section lists the risks that affect the current situation or that may affect it in the future. It is very important to evaluate this section well in order to take precautions. Factors such as increased competition, changing technology and high interest rates may pose a threat. Some questions that can be asked when listing threats are as follows;

  • Is there a financial problem?
  • What obstacles are encountered?
  • What problems can be encountered in the sector?
  • Are there competitors that can harm?

Evaluation of SWOT Analysis Result

Once the analysis is completed, the strategy can be developed more easily. It should be determined how the strengths should be evaluated. A solution should be developed on how the identified weak points can be strengthened or neutralised. It should be found out how to make the best use of opportunities and how to defend against threats.

What is a Business Model Canvas?

It is a logic model that shows how a company creates and distributes value and ensures its financial sustainability. It is not a business plan. The business plan expresses the work to be done step by step. The business model refers to the outline of the entire work done. It is a concept that emerged in 2008. It is widely heard and widely used in the start-up world. There are 9 basic building blocks.

How to Prepare a Business Model Canvas?

Customer Segments: When a product or service is offered, different customer segments can be addressed. We need to define these customer segments in detail according to your own product or service.

Value Proposition: How do you offer a solution to the problems you have identified? What is the main thing that distinguishes you from your competitors? Do you offer low cost, cheaper product, more convenient service, better quality service, product or unique product?

Channels: How will the determined customer segment be reached? Through which channels do you plan to deliver your product / service to your customer segment?

Customer Relations: How will you manage customer relations?

Revenue Stream: The revenue model is the title you need to explain how much money you will earn while selling your product / service to your customers and how you will collect this money.

Key Resources: Which basic resources does your value proposition require? You need to identify all the needs required for your core activities under this heading.

Core Activities: What are your prioritised needs for your value proposition?

Key Partnerships: With whom can you partner for the value proposition? Are there people/institutions/organisations that can help you with dissemination or customer acquisition?

Cost Structure: Covers all costs that may be incurred. What is the cost of the product/service you will offer? What is the cost of the advertisements you will spend to reach the customer? What kind of financing is needed for your basic resources?

Value Proposition Canvas

The Value Proposition Canvas is a tool that measures the matching of the set of values offered by an initiative to a specific customer segment with the needs of the customers.

On the right side, each customer segment’s work, difficulties, problems, and benefits they obtain.

On the left side, there are value proposals that will eliminate or reduce their problems and increase their earnings and benefits with the products and services to be offered. Instead of talking about the features of the product, it allows you to talk about how these features will contribute to solving the problem of your prospective customer.

Porter’s Five Forces Analysis

The aim of the model is to reveal the competitive order and potential profitability of a sector. There are 5 forces that create a competitive environment in the sector in which the business operates and that can jeopardise your profitability.

Competition in the Sector: The number and strength of competitors are analysed. How many competitors are there? Who are they? How is the quality of their products and services compared to yours?

Strength of Suppliers: How many potential suppliers are there? How unique is the product or service they provide?

Power of Customers: The more powerful buyers are in a market, the less powerful you are as a company or product. How many customers are there? How big are their orders?

Threat of Substitute Products: Substitute products can also pose a threat to management, because when consumers cannot find your product, they may turn to substitute products. Even if you do not have direct competitors, there are forces affecting your market performance.

Threat of New Entrants in the Sector: How easy is it for potential competitors to enter your industry or market? This power principle actually has two sub-divisions: The potential for new entrants and the power of new entrants. It will be important to analyse both of these well.

TECHNOLOGY READINESS LEVELS

Technology Readiness Levels is an index used to measure the maturity and availability of a technology under development. Developed by NASA researchers in the 1970s, this index is mostly used by decision makers for benchmarking, risk management and funding decisions.

TRL1: Formulation of Technology Concept

TRL2: Observation of Basic Principles

TRL3: Experimental Proof of Concept

TRL4: Validation of Laboratory Level Technology

TRL5: Relevant part of the prototype as a whole or as components
Approval in environments

TRL6: Testing the prototype in a simulated working environment

TRL7: Testing the prototype in real working environment

TRL8: Testing the prototype

TRL9: Proving the validity of the system in real operations

This project is funded by the European Union under the ENHANCER program implemented by the International Centre for Migration Policy Development (ICMPD) and coordinated by the Ministry of Industry and Technology, Directorate General for Development Agencies. Üsküdar Municipality is responsible for the content contained herein and the European Union, ICMPD and the Turkish Ministry of Industry and Technology cannot be held responsible.