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Dr Jim Hamillwww.energise2-0.comwww.twitter.com/drjimhamill

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Opportunities and challenges for Malta/Gozo tourism and hospitality in becoming more entrepreneurial.Opportunities for you!

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Agenda

Morning •Entrepreneurship – what is it?

– Characteristics of an entrepreneur– Importance

•Are you an entrepreneur? •Key Success Factors in Business Start-Ups•Group Breakout Session - Ideation•LunchAfternoon•Ideation, Feedback and Discussion•Roadmap to Success

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Your ExperienceMy Experience

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The Entrepreneur Roller Coaster

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What is an Entrepreneur?

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Range of Defintions

An entrepreneur (Wikipedia):•“One who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods“. Includes – new business start up; revitalizing mature organizations; social entrepreneurship; and intra-preneurship

•Entrepreneurial activities range in size from solo projects to major undertakings creating many job opportunities

•Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and some NGOs

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Range of Definitions

• 1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services

• 1961: David McClleland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker

• 1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource

• 1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control

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Range of Definitions

• 1975: Howard Stevenson: Entrepreneurship is "the pursuit of opportunity without regard to resources currently controlled."

• 1983: G. Pinchot: Intrapreneur is an entrepreneur within an already established organization

• 1985: W.B. Gartner: Entrepreneur is a person who started a new business where there was none before

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Characteristics of an Entrepreneur

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What is an Entrepreneur?

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Importance of Entrepreneurship

• Entrepreneurship is a key driver of economic growth, productivity, innovation and employment – critical to economic dynamism

• Countries with high levels of entrepreneurial activity tend to out-perform those who don’t have the entrepreneurial spirit

• Shift in government policy from support to a small number of large companies to support for business start-ups

• What support is available in Malta?

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Are You an Entrepreneur?

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GET Test

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GET Test

A person who is highly enterprising has the following qualities:

•A strong need for achievement•Like to be in charge•Seek opportunities and use resources to achieve plans•Believe that they possess or can gain the qualities to be successful•Are innovative and willing to take a calculated risk

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Give yourself a score out of 10 for the following questions

The more you agree with the question, the higher your score

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Achievement

1. An orientation towards the future2. Reliance on own ability3. An optimistic rather than a pessimistic outlook4. A strong task orientation5. Effective time management6. Results-oriented with yourself and others7. Restlessness, driven and energetic8. Opinionated in defence of ideas and views

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Achievement

9. Determination to ensure that objectives are met even when difficulties arise

10. Responsible and persistent in pursuit of aims11. Oriented towards challenging but realistic goals12. Willingness to work long and hard when necessary

to complete tasks

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Need for Autonomy

13. Independence, preferring to work alone, especially if they cannot be top dog

14. Self expressive, feeling a strongly need to do their own thing their way, rather than work on other people's projects

15. Individualistic and unresponsive to group pressure16. Leadership, preferring to be in charge and disliking

taking orders17. Unconventional, and prepared to stand out as being

different to others

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Need for Autonomy

18.Opinionated, having to say what they think and make up their own mind about issues

19.Determination, strong willed and stubborn about their interests

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Creative Tendency

20. Imaginative, inventive or innovative tendency to come up with new ideas

21. Intuition, being able to synthesis ideas and knowledge, and make good guesses when necessary

22. Change-orientation, preferring novelty, change and challenges with a dislike of being locked into routines

23. Versatile and able to draw on personal resources for projects or problem solving

24. Curious and interested in new ideas

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Calculated Risk Taking

25. Decisive, being able to act on incomplete information and good at judging when incomplete information is sufficient for action

26. Self-awareness with the ability to accurately assessing their own capability

27. Analytical, being good at evaluating the likely benefits against the likely costs of actions

28. Goal-oriented, setting themselves challenging but attainable goals

29. Effective information management using information to calculate the probability that their actions will be successful

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Internal Locus of Control

30. Opportunistic, seeking and taking advantage of opportunities

31. Self-confidence with the belief that they have control over their destiny and make their own luck, rather than being controlled by fate

32. Proactive, taking personal responsibility to navigate the problems that arise to achieve success on their terms

33. Determination and express a strong willed control over life

34. Self-belief, equating the results achieved with the effort made

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How did you score?Are you an entrepreneur

in the making?

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Business Start UpsKey Success Factors

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Success Factors

1. Thoroughly understand your market/your customers

2. Building a strong business model and strategy for competitive advantage (differentiation)

3. Understand risk and deal with it

4. Have sufficient working capital

5. Strong focus on the sales pipeline (including pre-orders)

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Success Factors

6. Strong focus on profit margin

7. Strong vision and purpose; passion

8. Resilient, persistent and persuasive

9. Quality customer base/quality network – high value, high growth potential

10. Have the right people/team in place

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Group Ideation

Group Ideation

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Group Ideation

Two key questions:

•Agree a business idea•Develop an outline Business Plan

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Finding a Business Idea

Generate a list of business ideas (max of 3). Choose the most attractive idea based on:•Attractiveness - Would you enjoy doing it?•Ability to undertake – Do you have the skills needed to do it?•Practicality – Is it something that really can be done?•Potential market demand – Will customers buy it?•Ability to combat competition – Is there competition and can you combat it in some way?•Ability to differentiate – Can you differentiate it in some way that can be sustained over a long period?•Price potential – Can you avoid competing simply on price?•Resource availability – Do you think you have, or can get, the resources you need to start up this business?

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Develop an Outline Business Plan

Brief outline of the following:•Your target market; market size and growth potential

•Benefits of your product or service; your USP?

•Your main competitors; their strengths and weaknesses

•The main strengths and weaknesses of your own business? How will you differentiate your product/service?

•How will you market and promote your business?

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Developing the Business Plan

• What will your main costs be? Fixed and variable.

• What is your breakeven point?

• What are the critical success factors and how will you make sure that you achieve them?

• What funding will you need and where will it come from?

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Coffee then Ideation

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Afternoon SessionFeedback and Discussion

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Balanced Scorecard Approach to Business Start Up

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A Roadmap for the Future

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Use a Simplified Balanced Scorecard

• Will ensure that the actions and initiatives you take are fully aligned with and supportive of your overall goals and objectives; that KPIs are agreed for monitoring and evaluating on-going performance, impact and ROI; and that all key success factors are considered, especially the organization, people and resource aspects critical to a successful business start-up

• A Scorecard approach can also be very useful for internal and external communications – a simple framework to present your business idea, goals, objectives, key actions and initiatives to colleagues, funders and other stakeholders

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Balanced Scorecard

• Not ‘paralysis by analysis’. By providing an agreed framework to follow, the Balanced Scorecard considerably speeds up strategy development and implementation

• The steps involved can be captured in a Balanced Scorecard Strategy Map

• Five key questions to address……

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Balanced Scorecard

• What is the overall vision for your business?

• What are the key business objectives and targets to be achieved?

• Who are your customers?

• What are the key actions and initiatives you need to take?

• Organisation, Resource and People Issues

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BSC Strategy Map

Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective

Strategic Objectives KPIs / Targets

KPIs / Targets KPIs / Targets

KPIs / Targets

Customer Group 1

Customer Group 2

Customer Group 3

Customer Group 4

2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions

Organisation People Resource

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In Summary……..Business Planning Pays

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Two Motivational Videos to Conclude

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Motivational Video 1

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Video 2 is a surprise

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Thank YouDream your Dream