Human capital is the storage of knowledge, habits, social and personality attribute including creativity embodied inability to perform labor to produce economic values. On the other hand, entrepreneurship is activity of setting up ventures and taking on financial risks in hope of profits (Chaudhary and et.al., 2018). In the present study, a person who is start-up entrepreneur seeking funding for new venture in retail industry. It will explain business ideas, set out budget and identify challenges that arising in venture.
An entrepreneur creates their business plan carefully for starting up new venture. If enterpriser is not sure of facts and ideas, this planing helps to think thoroughly, study and research. Opening up new business can be very expensive lesson in the value of planning (. (Chambers and Humble, 2017). An entrepreneur creates business plan in which different elements such as financial, production, personnel etc. This helps enterpriser in increasing necessary funds. It informs investors, suppliers, and stakeholder about venture. Then an enterpriser assembles necessary resources to start new venture.
- Finding team: Being start up entrepreneur, it is necessary to find team by identify talent, skills and knowledge for opening new business. It is difficult and stressful of start up for picking up right team in business.
- Know money flow: An entrepreneur knows about profits and loss of business is not enough. Enterpriser makes sure that there is not unnecessary wastage of money in venture. It is also difficult to take decision to overcome of this challenge.
- Generation of business ideas: This step needs generation of an idea that can be converted into business. The thought able to output a reasonable return of investment that it is worthwhile for implementation (Watson and McGowan, 2018). There are different sources that discovered business ideas. It includes observing market, prospective customers, study of projects profiles, development in other nations etc.
- Identification of business opportunities: Business opportunity refers to business ideas that can be converted to profitable venture. An entrepreneur is able to identify such enterprise thoughts that regenerate to gainful business project. While selecting an idea to work with, an enterpriser has to be careful about the line of business as any mistake made in taking such decision prove to by costly.
- Dealing with competitors: It is major challenge to deal with competitors in same industry. But it is necessary to know about competitors, its products, pricing strategies etc. that helps in starting up new venture in same industry.
- Risk management: There are many risks in business such as human resources' management, financial, technological etc. that are facing by an entrepreneur to start up new venture in industry (Scarborough, 2016). Another risk involves accident happen, people resign, building get damaged etc. so that, an enterpriser is able to manage all kinds of risks in new venture.
- Solution: An entrepreneur needs to find solution for all problems that happen in starting up new venture. For that, enterpriser implement different strategies for solving issues in business.
Through market research, entrepreneur collect all information and create plan of business. This helps in starting up new venture. It includes market analysis, marketing plan, industry background, competitors analysis, financial plan etc.
- Market segmentation: It is necessary to make decision about market segmentation, because there are various types of market segmentation such demographic, behaviour etc. It is essential for starting up new venture in chosen industry.
- Market Study: First of all, entrepreneur will do market research for identifying product feasibility, pricing, competition and other information of marketplace (Hitt, M. and Duane Ireland, R., 2017). With the market research, enterpriser to know about growth and development of chosen industry for starting up new venture.
- Implement Strategies: After market research, entrepreneur implement strategies regrading marketing, human resource, financial conditions, technology and other factors. This assists in starting up new venture in industry. Entrepreneur make policies and procedure in terms of opening up new project.
- Understand future customers: It is the most essential to understand potential customer then starting up new venture in retail industry. In the business plan, it is clearly description of expected consumers and they make purchasing decisions receives much less attention than operational details like financing, sourcing and technology.
- Focus: It is essential core competencies that focus on vision and mission of starting up new business. It means being able to effectively visualizes, develop and communicate missions and goals with whole team (Wilson, 2018).
- Entrepreneurial empowerment: Start ups are filled with entrepreneurial individual who believe in their work and want to make significant contribution to the business and community. Take advantage of their talent and vision by empowering them to make difference in business.
- Innovation: An entrepreneur make sure that developing innovation in their new venture. Because of, start ups needs to be innovation. This type of non technical competency also includes working well with other in order to innovate.
- Find strengths and build them: An entrepreneur is able to identify and find their business strengths and building them that helps in starting up new venture.
- Marketing plan: An entrepreneur needs to create marketing plan that includes sales budget, situational analysis, SWOT analysis, strategies, goals and objectives. The purpose of this plan is to set company is specific path of marketing.
- Sales plan: An enterpriser requires creating sales plan that involves set of sales target, choosing strategies, identify sales tactics, focus on sales team and clarify budget (Burns, Bush and Sinha, 2014). This helps in starting up new venture and achieving goals.
- Location and facilities: An entrepreneur needs to decide location of business and requiring all facilities on that location. This assists in starting up new venture in chosen location.
- Testing ideas: If possible that testing ideas of once by internet research, so that an entrepreneur go for it. Therefore, it is easy to start up new venture in retail industry. With the help of it, it is beneficial to know about customers views.
- Know market: An entrepreneur needs to conduct research or gain experience to help learn market inside and outside in which includes key suppliers, distribution, competitors and customers. With the help of it, enterpriser gets customers views, needs and wants etc. Technology development: Entrepreneur make sure that utilizes advance technology for opening new venture. Therefore, enterprise needs of skilled employees, labour, capital for starting up business. With the help of skilled employees and labour, it is easy to start project.
Company and management summary
It is very important to know about retail industry for starting up new venture as start up entrepreneur. It is also needed to identify growth, market share, profits regrading retail industry. So that, entrepreneur make business plan for analysis in industry, marketplace, seeking funding and determine factors that affects on new venture (Wiederhold and et.al., 2014). On the basis all information, entrepreneur make sure that skilled employees are working in business.
- Organizational structure: An entrepreneur make decision about organization structure of company. It includes classification of all department, store room, etc. This assists in starting up new venture in retail industry.
- Personnel plan: An enterpriser needs to design personnel plan that includes team description, organizational structure statement, explain gaps, listing advisor, consultant and board members, forecast personnel costs. This helps in starting up new venture in chosen industry.
- Communication skill: An entrepreneur has effective communication skill that helps in interact with investors, suppliers, customers and employees. This reflects on image of project and helps in starting up new venture. This skill assists in building up good working relationship.
- Leadership skill: An enterpriser has good leadership skill that helps in motivate to employees and improve productivity. Coaching and mentoring employees by allocated time. This helps in starting up nee venture (Pietrzyk and Rokita, 2015).
- Time management and problem solving: An entrepreneur has effective time management and problem solving skills. With the help of it, enterpriser is able to take decisions under pressures and solving problems in projects. Through time management skill, businessman is able to complete project.
- Feasibility Study: In this study, an entrepreneur is to ensure that project in viable. Feasibility study involves following analysis such as technical, commercial, financial and socio- economic aspects. This assists in identifying location, raw material, labour, machinery, equipment, degree of competition, capital structure, employment generation, earning foreign exchanges etc.
- Financial management: An entrepreneur has great experience about management of financial resources that helps in starting up new business. It includes cash flow, sales, profits and loss, preparing budget. This skill assists in managing financial investment and opening new business.
- Expenses: An entrepreneur make sure that there is no unnecessary expenditure on employees, machinery etc. After forecasting sales and revenues, enterpriser is to ensure that effective calculation of expenses of business (Chambers and Humble, 2017).
- Budget: Estimating all expenses, sales, profits and loss, cash flow. Overall budget of plan that around 1 million.
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From this report, it can be concluded an entrepreneur create business plan in which includes executive summary, opportunity, marketing analysis, execution, company and management summary and financial plan. These kinds of analysis help in starting up new venture in chosen industry.