A Successful new entry provides the opportunity for Entrepreneur to grow his business.

Opportunities for new entry are generated by the knowledge of entrepreneur and from organizational knowledge.

Existing
Market New

Penetration Strategies

Product development Strategies

Market development Strategies

Diversification Strategies

Existing Product

New

Strategy to grow by encouraging existing customers to buy more of the firms current product. Focus on the firms existing product in its existing market.

Strategy to grow by selling the firms existing products to new group of customers. Group of customers can be categorized in term of Geographic's or demographics or new product use.

New Geographical Market Selling the existing product in new location.

New Demographic Market Based upon income, education, age, sex, where they live.

New Product Use An entrepreneurial firm find out that people use its product in a way that was not expected

A strategy to grow by developing and selling new products to people who are already purchasing the firms existing product. Experience with a particular group is a source of knowledge.

A strategy to grow by selling a new product to a new market. There are three types of diversification 1. Backward Integration 2. Forward Integration 3. Horizontal Integration

Raw material Producer Raw material Wholesaler Manufacturer Finished goods wholesaler

Backward Integration

Raw material Producer Raw material Wholesaler

Horizontal

Manufacturer Finished goods wholesaler

Forward Integration
Customer Customer

Public companies had achieved much larger growth than those who did not go public, studies revealed. Modest levels of growth by small businesses can have a dramatic impact on the economy. Use of technology hit the jack pot or fails.

As the firm grow ,it changes. These changes introduces a number of managerial challenges. 1. Pressure on existing financial resources 2. Pressure on Human Resource 3. Pressure on Management of Employee 4. Pressure on Entrepreneurs Time

FINANCIAL CONTROL
Appropriate controls to ensure that entrepreneur met projections and goals. Managing cash flow Managing inventory
1. 2.

LIFO FIFO

1. 2.

Managing fixed assets Managing costs and profits

Taxes Record keeping

MANAGING CASH FLOW

Up-to-date assessment of cash position.

Controlling the cash needs Prepare monthly cash flow statements

This indicates Cash flow problems

Comparing budgeted Or Performa with Actual results

MANAGING INVENTORY
Inventory Drain on cash flow To much inventory Manufacturing Transportation Storage

To little inventory

1. Customer demand are not meet 2. Lost in sales

LIFO OR FIFO
Conversion to LIFO is beneficial when Rising labor, materials, and other production costs are anticipated. Business and inventory are growing. Business has computer-assisted inventory control method capability. Profitable business. If the start up is losing money, there is no no point in conversion methods.

MANAGING FIXED ASSETS

Involves long-term commitment and large investments for new venture. Equipment require servicing and insurance. Affects utility costs. Equipment will be depreciated over time. Leasing could consider as alternative. Terms of lease Type of asset to be leased Usage demand on the asset.

MANAGING COSTS AND PROFITS

Computing net income for interim periods During the year

Eliminating the problems to increase profits

Establishing the standards and Comparing results

Finding the cause of problems effecting profits

Taxes Withhold federal and state taxes for his / her employees. If payments are late higher interest and penalties are to be paid. Record keeping Maintain and keeping the databases for Customer knowledge and interest Sales new and existing

OVERCOMING PRESSURES ON THE EXISTING HUMAN RESOURCES

The entrepreneur/manager involves in interviewing, hiring, and evaluating employees because with a new venture one does not has the luxury of a human resource department. Use of professional employer organizations (PEOs). Proportion of employees: permanent / part time Mistakes in hiring and selecting. Maintenance of the corporate culture.

OVERCOMING PRESSURES ON THE MANAGEMENT OF EMPLOYEES

Participative Style Of Management

The entrepreneur/manager involves other in decision making process

Activities to successfully grow a Business

Establish

a team spirit Communicate with employees Provide feedback Delegate some responsibility to others Provide continuous training for employees

OVERCOMING PRESSURES ON ENTREPRENEURS TIME

Time management

The process of improving an individuals productivity through more efficient use of time.

Benefits Of Time Management

Increased

productivity Increased jo satisfaction Improved interpersonal relationships Reduced time anxiety & tension Better health

BASIC PRINCPLES OF TIME MANAGEMENT

Principle

Of Desire A recognition of the need to change personal attitudes & habits regarding the allocation of time.
Principle

Of Effectiveness A focus on the most important issues, even when under pressure.

 Principle

Of Analysis Understanding how time is currently being allocated, and where it is being inefficiently invested.
Principle

Of Teamwork Acknowledgment that only a smallamount of time is actually under ones control & that most of ones time is taken up by others.

 Principle

Of Prioritized Planning Categorization of tasks by their degree of importance & then the allocation of time to tasks based on this categorization.
Principle

Of Reanalysis Periodic review of ones time management process.

IMPLICATIONS OF FIRM GROWTH FOR THE ENTREPRENEUR

Firm growth introduces a number of managerial challenges for the entrepreneur: familiar and unfamiliar.
of growth will improve firm performance; but all entrepreneurs dont follow the philosophy.

Pursuit

CATEGORIZATION OF ENTREPRENEURS & THEIR FIRMS GROWTH

Four

Types Of Entreprenuers & Firm Growth

Entrepreneurs ability to institute professional management practices

High

Unused potential

Actual growth

Low

Little Potential

Constrained

No

Yes

Entrepreneurs growth aspiration