Entrepreneurship and Leadership

  Resources. Characteristics of the final product The entrepreneur must go into the resources (physical, material and financial) needed so that the product can get to the market in the way it was intended. Within the physical resources, machines and equipment, technology is considered as a key component.   Physical and material resources To define the need of physical and material resources the entrepreneur must take an estimate of the unsatisfied demand found on the result of the market research as a reference. This way the amount of resources acquired will help to fulfill the needs of the customers. On the other hand, the entrepreneur must consider the financial resources that are available. Finally, the entrepreneur must analyze between at least three providers of all the resources needed to complete the product.   Human Resources To determine the amount of people that the entrepreneur needs, it is important to look at the unsatisfied demand in the market. Depending on...

  Structure of the final market research report With all data transformed into results, represented in graphs and measures of center; the entrepreneur can count with the necessary elements as arguments to decide whether the new business can continue or not.   The preparation of a report involves three steps: -         Understanding of the results, emphasizing their meaning -         Organization of the results, so that it goes smoothly to the approach of conclusions -         Writing of the text where the results obtained are explained and clarified   The report must be written based on three sections: -         Summary of the report (2 to 3 pages) -         Main findings, it’s necessary to present the results obtained -         The annex of the data that were tabul...

  Assets, liabilities, equity, income, costs and expenses It is important to classify the financial accounts in order to know or to find information quicker. In every entrepreneurship there are two big groups of accounts: -         Assets, liabilities and equity: accounts that make part of the balance sheet -         Income, costs and expenses: accounts that make part of the profit and loss statement Specific denominations of the financial accounts Assets : There are divided in three types, which are current, fixed and deferred Current assets are those goods or values that are in coin or paper in the cash account. The characteristics of current assets is that they can be converted into cash within a year. Fixed assets are those which are not bought to be sold, but they work as support for the business. For example: -         Land, buildings, machines, equipment, furniture, compu...

  Handling of the main accounting accounts The majority of productive entrepreneurships, when accounting for their financial transactions, tend to accumulate records in accounts such as: cash, banks, accounts receivable, inventory, fixed assets, depreciation, accounts payable, capital, income, costs and expenses. These accounts belong to the main accounts such as: assets, liabilities, equity, income, costs and expenses.   Plan of financial account of a business When the entrepreneur decides to permanently record the financial movements of the business, it is important to structure, in first place, a list followed by its definition of the financial accounts involved. This practice is very useful since the person in charge of keeping the business accounting, finds within the plan of financial account the qualifying group frame. Here are located the accounts that have a direct connection with the financial movement that will be registered.   Here we have an example of the pl...

  Detailed description of the process Besides establishing an organizational structure of the business, the entrepreneur must worry about describing and explaining the steps that are involved in the production process of the good or service.   One advantage for the entrepreneur is that working under a detailed process the following question may be answered:             How must the activities inside the business be done?    Example:  In a juice business the detailed steps to produce the product, in this case orange juice is the following: -         Wash the oranges -         Cut in half (in a horizontal way) -         Put one half in the extraction machine -         Press the half to get juice -         Repeat the two previous step...

  Measures of Center in Numerical Data The measures of center used to analyze data obtained from a market research are: Mean, median and mode.   Mean : It’s the “average” number, found by adding all data points and dividing it by the number of data points. For example, the mean of: 3, 4, 6, 7, 1, 9, 8, 2 = (3+4+6+7+1+9+8+2)/8  = 40/8  = 5   Median : It’s the middle number, found by ordering all data points and picking out the one in the middle. (If there are two middle numbers, you take the mean (average) of those two numbers. For example, the median of: 150, 200, 175, 160, 220, 125, 195 125, 150, 160,  175 , 195, 200, 220 11, 26, 31, 15, 45, 35, 60, 54  11, 15, 26, 31, 35, 45, 54, 60 (31+35)/2 33   Mode:  It’s the most frequent number, that is the number that appears the highest number of times. For example, the mode of: 0.20, 0.25, 0.20, 0.15, 0.20, 0.25, 0.18, 0.20 0.20   Exercises:  Calculate the mean, median and mode of the fol...