MOHD FAIZUL BIN OSMAN

SOALAN ASSIGNMENT ENTREPENUERSHIP UMP

1. In order to be sucessful in running a business, you must know what to avoid. Provide
an explain any 5 ways to overcome these challenges.

2. Explain any 5 question before buying a business.


3. What are the 5 critical areas for analyzing an existing business?


















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JAWAPAN
a) In order to be successful in running a business, you must know what to
avoid. Provide an explain any 5 ways to overcome these challenges.

Introduction
Definition of 'Entrepreneur'

An individual who, rather than working as an employee, runs a small business and
assumes all the risk and reward of a given business venture, idea, or good or service
offered for sale. The entrepreneur is commonly seen as a business leader and
innovator of new ideas and business processes.


Things To Avoid in Business
Things to avoid while starting new business

Starting a new business is a simple issue or a complicated one would depend on the way
one looks at it. If one finds it cumbersome, it is best that it is avoided and continue with
a more comfortable nine-to-fiver. Starting a business is simple for more self-motivated
people but irrespective of motivation there are certain things that one should avoid while
embarking on their path to financial freedom. Some of the most important of them are as
follows:

a. Get rich quick: A business like a human being grows slowly and steadily when
handled with care. If you think you are going to get rich overnight by starting a business
you would be surprised to know that it involves a lot of hard work and a lot of time
before It can take care of you.



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b. Staffing: When starting a new business, you will need to choose your manpower with
care. Never, repeat "never" hire your friends or family into your new business despite
their qualifications or experience.

c. Business plan: Any new business should follow a good business plan stringently.
Since the survival the business is based on the calculations made with the help of a good
business plan, never ignore it.

d. Autorun: No business runs on auto-pilot and it is necessary that you are on top of
things all the time. Any kind of avoidance will result in a downturn and there is no
business in the world that runs itself apart from "life".

e. Branding and marketing: For any business to succeed in the long run it needs a
good marketing plan with excellent branding. Marketing plans may change but branding
never should. Branding should include a perfect logo.

f. Giving up: Never give up on your business even the chips are horribly down. Never
even think of giving up. A lot of things depend on you, for example, the future career of
you and your employees.


How Entrepreneurs to overcome challenges in business

1. People: Successful entrepreneurs point to their people choices as more important than
any other factor in their success. This is the There is No I in Team Principle. Despite
the stereotype of the cowboy entrepreneur who rides alone, these business leaders make it
a priority to surround themselves with smart people, listen to their input, and build high-
performing teams.

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2. Financial Resources: While every entrepreneur must overcome the initial hurdle of
raising capital to start a business, high-growth entrepreneurs also face the unique challenges
of funding periods of rapid expansion. The Bird in Hand Principle of financial resources
is that high-growth entrepreneurs are extremely creative and resourceful at fundraising, as
well as very skilled at running lean, efficient operations.

3. Business Networks: Successful entrepreneurs maintain vibrant personal and professional
networks that support their companys growth. The It Takes a Village Principle is that
expert entrepreneurs view customers, suppliers, and sometimes even competitors as co-
creators of their market, vital to achieving and keeping their place in the market.

4. Environmental Jolts: The Lemonade Principle refers to the way high-growth
entrepreneurs recover from major outside shocks that threaten their business.
High-growth entrepreneurs do not focus on predicting or preventing shocks; rather, they take
setbacks as par for the course, continually reacting, adjusting, re-tooling, and moving
forward.

It show how founders of fast-growth companies must continually balance and adjust as their
companies grow and change. These entrepreneurs learn to manage and leverage the tensions
between idealism and pragmatism, control and delegation, and confidence and humility. They
exhibit an extreme responsiveness to market insights and a willingness to tryand discard, if
necessarynew business models. Yet, at the same time, they are uncompromising and
persistent in the pursuit of their vision and values.


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5 WAY TO OVERCOMING CHALLENGES IN BUSINESS

Realize that Failure Is Always an Option
Too many entrepreneurs try to establish a small business strategy that does not include failure
as an option. The problem that these business owners encounter is any and all unforeseen and
unpredictable external actions that may affect their strategies.
Weather, economic downturn, serious illness: all these are examples of issues that could
affect a small business strategy and cause it to fail. If you recognize that failure is an option,
you can be more prepared to overcome them when they happen.
Be Persistent
Thomas Edison "failed" to invent a suitable and practical light bulb thousands of times. When
asked if he felt like a failure and should give up, Edison said, "Young man, why would I feel
like a failure? And why would I ever give up? I now know definitively over 9,000 ways that
an electric light bulb will not work. Success is almost in my grasp."
Would you consider Edison a success? Absolutely! His persistent efforts paid off and created
a timeless, universal product used in all households and businesses. Don't think that failure is
a reason to give up. Be persistent.
Review and Learn
Like Thomas Edison, you can learn what "not" to do in the future by reviewing a small
business strategy that did not work. It is always helpful to keep a log of your new business
strategies so you know what actions you took along every step of the way. Managing
challenges means reviewing steps and making changes as appropriate to meet the goal you
have set.


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Ask for Help
A small business owner should never be too proud to ask for help when managing challenges.
Use a mentor. Hire a consultant. Those with experience and wisdom and are willing to share
are some of the best resources that a small business owner can use.

Review Your Successes
Sometimes an entrepreneur can become discouraged due to failing a small business
challenge. It never hurts to sit down and review things that have gone right in the past. What
small business challenges did you overcome previously? Did you win an award for best
business practice? Did you outgrow your first office and are now occupying double the
space? Did you form a successful joint venture with another business owner for a specific
event?
Look back at what you have accomplished, and you will be encouraged to continue striving
to overcome failures.
Remember, failure is always an option. Be encouraged. Be persistent. Ask for help. And keep
in mind that you have succeeded in the past and will do so again. With these tips, you can rise
to the occasion and continue to grow your small business.








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JAWAPAN NO 2
Explain any 5 question before buying a business.
1. Find out a little about the business.
Question: Could you please tell me about your business?
The answer you are looking for is a very crisp, clear and focused answer to
demonstrate that the Seller really knows what business they are in.
If the current owner cannot explain the business in a one-sentence answer it may
simply mean that there is a huge opportunity to market the business.
What you will find is that the more profitable and focused the business; the clearer the
owner is on what business they are truly in.

2. Why are they selling?
Question: Why are you selling (their answer and the REAL reason)?
There are many reasons why someone sells a business: retirement, illness, boredom,
new opportunities, chance to cash out, divorce, relocation, etc.
Whatever their reason, there has been a conscious decision made that they no longer
want it. Whatever the reason you must do some probing. What the Seller tells you
may not be the reality of the situation.
You must always be on guard for inconsistencies in their commentaries so asking
additional questions may solicit a comment that will cause you to think in another
direction or perhaps provide cause for concern.



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3. The history of the business.
Question: What is the History of the business?
It is interesting and important to understand how a business has evolved and at what
stage in its development it is currently positioned.
The longer it has been around the more you will want to review how it is positioned
amongst the competition. Has it gained or lost ground? What is the market.s
perception of the business? Has it stayed true to its plan or has it changed over time?
Is it more profitable now than in the past?

4. Check the seller.s background.

Question: What is your background?
Generally, this will indicate what area of the business they focus on the most.
Operators tend to focus on operations and those with a marketing background will
focus on that area.
It is interesting to see how well these parts of the business run given their background.

5. Is the business employee-driven?
Question: How much vacation do you take?
You are no t asking this because you want time off even though you haven.t started
yet. In fact, it.s the opposite. If they tell you none to less than two weeks a year then
you know that the business is clearly not employee driven.
This can be due to many reasons such as: lack of trust, poor employees, the owner is
or thinks they are.the business., workaholic syndrome or, the Seller just does not
believe that the business can survive, let alone thrive, without his/her presence. Again
you are probing.
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JAWAPAN 3

What are the 5 critical areas for analyzing an existing business?
Key Questions to Consider Before Buying a Business
a) Is the right type of business for sale in the market in which you want to operate?
b) What experience do you have in this particular business and the industry in which it
operates?
c) How critical is experience in the business to your ultimate success?
d) What price and payment method are reasonable for you and acceptable to the seller?

Why does the owner want to sell.... the real reason?

a) What is the physical condition of the business?
b) What is the potential for the company's products or services?
Customer characteristics and composition.
Competitor analysis.
c) What legal aspects must I consider?
d) Is the business financially sound?

1. Customer Results
As you review the customer results in your business performance, you will find that through
this operational analysis there is going to be an investment result with sufficient care for the
customer satisfaction. The main thing is that no matter the cost of the service or product, all
customers require equal treatment. Therefore in order to maintain a good level of customer's
satisfaction, you need to analyze these results to maintain a positive profit growth.


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2. Strategic and business results
With strategic and business results you are going to be analyzing if the current investment
level you are working with is enough to get the job done. Is the level of money you have
going out is equal to that of your competitors, and if there is something you can do in order to
increase this level off strategic efforts in a cost effective manner.
3. Financial performance
The operational analysis is the report you will be reviewing. This requires that there is a
review of the rationality and cost efficiency of the steps that are being taken. Is the cost
comparable to the amount of the performance you are getting from that cost? This report will
help to find the solutions for questions of the financial nature. The corrective actions
necessary to increase the performance at a lower cost within specific limits will be what this
analysis helps to provide.
4. Innovation
The innovation area of analyzing the businesses performance will provide a qualitative result
for the areas of customer results, business results, and the financial performance thereof. You
will find that the solutions that will result are going to help to resolve several issues in these
three areas.
5. Critical thinking
When reviewing the different areas of the business performance reports you will find that
each area holds specific value in the process of creating a higher level of professional results.
This result will show itself in the overall business profit and success.
With businesses running on such a highly competitive level, it is no wonder that the process
of analyzing your business results is highly detrimental. When analyzing these different areas
there is a higher level of recognition in areas of business. This is also where you will be able
to create a better performance plan over time.
A critical look at the analysis of each of these areas will provide the steps necessary to
improve customer satisfaction, production, sales and marketing practices. This is a time when
it may take a more critically thinking mind to see what the results really hold, and what it will
take to increase sales, decrease cost and create a much more efficient process.
There are different ways that you can analyze these are of your business. You can track and
run the results yourself. There are companies that will help you to track this information.
Finally there are also software options for running the results for your business analysis.
What ever the option is you choose, remember that the results are only as good as the process
you are running. Using this information correctly will help to empower your small business
to grow in profitability and success.


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REFFERENCES
1. http://www.businessknowledgesource.com/smallbusiness/tips_for_analyzing_business_per
formance_024428.html
2. WWW.wikipedia.com
3. www.quickmba.com
4. http://www2.econ.iastate.edu/faculty/stone/Chapter5BuyingaBusiness.pdf