Are you a Successful Entrepreneur

Under diverse social and environmental circumstances of a country, entrepreneurs are created and entrepreneurial skills are developed. Given below are some of the definitions of the entrepreneur. 

  • The entrepreneurs is a risk taker – Cantillon -1775
  • The entrepreneur is an organizer - The entrepreneur is an organizer and coordinator of economic resources or an organizer – J.B. Say
  • The entrepreneur is an innovator – The entrepreneur is an economic being who tries to maximize profits through innovations - J A Schumpeter – 1991
  • The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.- Peter Drucker

Entrepreneurship is the adaptation of the above for prosperity of the country and entrepreneurs enjoy a unique standing owing to their initiatives for innovations, optimization of the use or resources, employment generation, fulfilling the needs of consumers and income generation. The secret behind Japan’s meteoric rise as a world economic super in the aftermath of the second world war was entrepreneurship. Similarly, countries like South Korea, Malaysia, Singapore and Hong Kong have achieved the status of developed countries based their exponential economic growth on entrepreneurship

Do you have these traits?

Hardworking – In order to run a business, one needs energy and interest in abundance.  It encompasses the ability to work long hours, being persevering and indefatigable, and ability to forego sleep when necessary.

Self-confidence – Entrepreneurs should repose faith in their own ability and back themselves on achieving success in targets set by them. The general belief is that if you want something and if you are willing to work with resolve to get it, you will in all probability end up obtaining it.

Building for the future- A characteristics of a more successful entrepreneur is to make their job secure and build a source of income. It signifies that he has the understanding that it will take a few years to bring the income of the enterprise to a significant level.

Profit oriented – The resolve to earn money is the best indicator that an owner of an enterprise would become a successful entrepreneur. It implies that one has identified that priority sat al time should be accorded to the enterprise. After making profits, the entrepreneur may decide whether he is going to use it for the expansion of the business or for his personal use.

Target oriented – The success of a business depends on having realistic objectives or goals and working with single minded determination to achieve the. This ability to set targets  (considered as worthy by the individual) and working towards achieving them is a fundamental attribute to be an entrepreneur.

Persistence – Problems and frustrations are part and parcel of any business. One of the key traits of a successful entrepreneur is persisting with finding solutions to problems.

Ability to live with failure – Every business has its own fair share of successes as well as failures. Living with failures includes identifying failures and learning from them and looking for new opportunities. If an entrepreneur does not have this trait, he first attempt of being an entrepreneur could very well turn out to be his last.

Reacting to responses –Entrepreneurs are always anxious to know the degree of their success and to continue with their operations. Lending an ear to responses and advice of others is an attribute of a successful entrepreneur.

Demonstrating initiative – Researches have shown that successful entrepreneurs always take the initiative and are willing to held personally responsible for the success or the failure.

Willingness to listen – A successful entrepreneur is not inward looking. Neither is he a person who is averse to the use of external resources. He does not dismiss the possibility of seeking advice from bank officials, accountants and business consultants. The willingness to listen to advice of others is a standout characteristics of an entrepreneur.

Establishing one’s own quality standards – Establishing quality levels for one’s activities and actively pushing towards achieving them is a hallmark of a successful entrepreneur.  These quality levels may relate to income, quality, trading and business turnover. All entrepreneurs need to establish incremental quality standards every year for better year on year results.

Ability to meet contingencies- Being an entrepreneur entails a sense of uncertainty usually not associated with permanent employment. Though this uncertainty usually prevails I respect of the turnover, it is constantly present in other fields such as the transportation of goods, prices and bank assistance. Ability to counter contingencies without much stress is an attribute of an entrepreneur.

Commitment – Starting and running a business is totally dependent on the total commitment of an entrepreneur in matters connected with money, time and lifestyle.

Building on strengths – Successful businessmen build their enterprises on strengths such as their manual skills, interpersonal relations skills, marketing skills, writing skills, knowledge on special products or services, knowledge on people engaged in insurance and the ability to build and maintain a network of connections.

Credibility and integrity – Honouring pledges, integrity in relationships, equity and credibility are attributes essential for an entrepreneur.

Risk taking – Being an entrepreneur always involves risk taking. An entrepreneur should be able to absorb calculated risks. Among others, these risks include possible increase in expenditure and decrease in income, placing trust on an individual to overcome potentially volatile situations. Sometimes, entrepreneurs are considered as risk evaders since they tend to mitigate risks by passing on the significant portion of risks to others. Bankers, suppliers and consumers could be some elements to whom entrepreneurs pass on their risks.

Do you possess following skills?

  • Self guidance
  • Alertness
  • Building connections with others
  • Specialized skills
  • Innovativeness
  • Leadership

Then you have the potential to be a successful entrepreneur.

Contact Details


: Industrial Development Board,
615, Galle Road, Katubedda,
Moratuwa,
 
: +94 112 605 323
: +94 112 607 002

Satisfying customers overcoming market threats

The entire process from the identification of the consumer needs to manufacturing, packaging, pricing, advertising, promoting and studying consumer responses after the distribution of goods is known as marketing.

The consumer is the most important person in the market. You can increase your sales by satisfying the consumer. Towards that end, the following matters should be given due consideration.

  • Study the market
  • Identify your consumer share
  • Determine their needs accordingly
  • Commodity (plan the quality, finish, colour, quantity, designs and post sales services)
  • Price- Determine the price having computed the production costs and adding your profit. Consider the following-  
    • Can the consumer afford it? 
    • What are the prices of competitors?
    • How to determine an attractive price?
      Determine a price which the consumer can afford and while making an adequate profit for you.
  • Location – Decide the avenues of distribution of your product. The nature of the product, the number of consumers and expansion and the cost should be taken into account.
  • Promotion- Raise awareness among consumers about your product. Give publicity to your product and choose a low-cost media for this. This will bring a good brand name for your product. ( Television, radio, newspapers, banners, posters are some of the media that can be used for publicity purposes) 

If you feel that the demand for your product may diminish owing to other market players, employ a suitable marketing promotion strategy. Competitions, sponsorships, lotteries are some of the strategies you can use for this purpose.

By employing shrewd marketing personnel for the sale of your products, you will not only be able to render a better service to consumers but will also be to maintain the customer satisfaction at a higher level. Therefore by recruiting, training and retaining capable, efficient, knowledgeable and qualified marketers, you can maintain a successful marketing process.

Contact Details


: Industrial Development Board
615, Galle Road, Katubedda,
Moratuwa
 
: +94 112 605 323
: +94 112 607 002

Costing of a Product or Service

What is Cost?

  • It is the total value of resources being used or should be used for producing a good, providing a service or carrying out a specific task.
  • The Management Accountants Association of the United Kingdom has defined cost as actual or imaginary expenditure in respect of any given commodity or service.

Costing?

  • It is the process or course of action used for measuring cost.
  • According to the Chartered Management Accounting Institute, costing is the technique or process for calculating the cost.

Costing helps businesses to improve by;    

  • Finding out total cost and determining price
  • Controlling expenditure and cutting  down on unnecessary expenditure
  • Enabling correct decision making 
  • Planning for the future 

Cost Unit

  • Physical units (chair, pen, book)
  • Time units (kilowatt hours, labour hours)
  • Personal Units (patient, graduate)
  • Distance units (kilometer, nautical miles)
  • Weight units (kilograms, ounce of gold)
  • Liquid units Liter of petrol)

Cost relevant to a cost unit is unit cost

Cost Centre

Cost center is the smallest active responsibility zone of area used for mobilizing costs. It can be a place, function or an individual.

Cost Accounting

  • Collecting cost information
  • Classification on recognized bases  
  • Cost information analysis
  • Standard conclusions
  • Measuring actual cost of goods and services

Business Knowledge

Contact Details


: Industrial Development Board
615, Galle Road, Katubedda,
Moratuwa,
 
: +94 112 605 323
: +94 112 607 002

 

Product Management

Product management is a process, which combines various resources and transforms into a value added product/services in the production with a controlled manner.

You can follow the following checklist.

No. Question Yes No
1 Are the raw materials stored in a safe mode?    
2 Does your organization have a specific separate place to manufacture your product?    
3 Are there safety instructions labeled in the production place?    
4 Do you have professional pest control services?    
5 Is your machinery well-maintained?    
6 If your product is a food product does your organization follow “Good Manufacturing Practices” (GMP)?    
7 Does your organization have product certification or system certification system?    
  If Yes: name of the certification:    
8 Are the employees well-trained for their tasks?    
9 In handling food products, do your employees wear the proper disposable gloves hair covering and clean uniforms?    
10 Does your organization follow a proper waste disposal method?    
11 Have you conducted a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis for your production operation?    
12 Do you have the knowledge and skills to assess all areas and levels of risk?    
13 Are you comfortable with your knowledge of marketing opportunities?    
14 Do you have the knowledge to evaluate new technologies?    
15 Are items overstocked? This increases the chances of spoilage and contamination for food product?    
16 Do you have an effective recall procedure?    
17 Do you know your cost of production?    

Contact Details


: Industrial Development Board
615, Galle Road, Katubedda,
Moratuwa,
 
: +94 112 605 323
: +94 112 607 002

Building a Motivated Labour Force

Building a Motivated Labour Force

Human resources management is the action taken in respect of developing, attracting and retaining employees deployed for achieving the objectives of a business.

There are 03 main objectives of this.

  • Providing qualified and trained employees to the institution
  • Enhancing productivity of employees
  • Fulfilling the requirements of individual employees through job satisfaction of employees, making opportunities available for career advancement and providing financial and non-financial benefits.

Responsibility of Human Resources Management

  • Recruitment and selection of employees
  • Employee training and evaluation of results
  • Compensation and benefits for employees
  • Laying off  employees
  • Planning requirements
  • Planning staff requirements

How to motivate your employees

  • Maintaining them consistently as a group
    • Implementing employee incentive programmes
    • Assisting them to understand that their service is important
    • Making them understand that even a minor task performed by an employee is as important as a decision made by an employee in a higher position.
    • Maintaining the working environment clean, happy and enjoyable
    • Giving priority to their innovations in the decision-making process
  • Individual motivation
    • Equipping them individually for their tasks
    • Listening to them
    • Not allowing them to shine individually
    • Respecting them as individuals
  • You motivate them by yourself
    • Listening to employees’ views for the advancement of the institution
    • Collecting their responses
    • Showing concern for private lives of employees
    • Keeping all matters private
    • Be a strange/ mysterious person

Contact Details


: Industrial Development Board
Galle Road, Katubedda,
Moratuwa,
 
: +94 112 605 323
: +94 112 607 002

Maximize Profit Using Productivity

Compared to other Asian countries, Sri Lanka’s productivity appears to be at a very low level. This is because they have shown a greater incline towards adopting and executing suitable procedures for productivity enhancement. Though numerous methods can be employed for promoting productivity, the 5S concept is the standout method.

Though the 5S concept on productivity originated in Japan, its norms and procedures had been practiced wittingly or unwittingly by many long before it was introduced to Japan. However, it became popular as a productivity concept in management only after its implementation in Japan.

In the wake of Japan’s unprecedented economic growth spurred by 5S concept, other countries of the Asian region such as Singapore, Malaysia. Korea, Taiwan also started emulating it and have achieved excellence results.

Institutions in which productivity promotion programmes can be implemented

  • Industrial institutions
  • Service providers
  • Public sector institutions, ministries and departments.

Importance of implementing productivity promotion programmes

  • Minimizing production cost/ service cost
  • Improving productivity proper placement of machinery
  • Meeting the needs of conscious consumers
  • Shaping employee attitudes in such manner to bring about development of industrial institution
  • Increasing lifespan of tools, equipment and other assets of the institution
  • Promoting team spirit within the institution
  • Procuring employee contribution properly for management related purposes
  • Creating an eco-friendly environment

Productivity Promotion Techniques

  • 5S Concept  
  • Kaizen concept
  • Improvement groups
  • Practical engineering techniques
  • Green productivity
  • Clean production techniques

Special Training Division of Sri Lanka Industrial Development Board

Centre for Entrepreneurship Development and Consultancy Services (CEDACS)
Lanka Industrial Development Board
No 615, Galle Road, Katubedda, Moratuwa.

Experience in conducting programmes

Some of the productivity promotion programmes implemented by the Centre are given below.

  • Office of the Divisional Medical Officer of Health – Medirigiriya
  • Office of the Divisional Medical Officer of Health – Dimbulagala
  • Toronto Engineering (Pvt) Ltd- Wekada, Kadawatha
  • GAT industries- Keselwatta, Panadura
  • Office of the Divisional Health Services Director- Thamankaduwa
  • Rural Hospital – Pulasthigama
  • Establishments Division, General Hospital, Polonnaruwa
  • Rural Hospital- Bakamuna
  • Rajarata Navodaya, Project Office- Polonnaruwa
  • Office of the Divisional Medical Officer of Health –Hingurakgoda
  • Office of the Divisional Medical Officer of Health – Elahera
  • Office of the Divisional Medical Officer of Health – Lankapura
  • Ministry of Health of the North Central Province – Anuradhapura
  • Southern Line Poly Printers- Matara
  • Office of the Divisional Medical Officer of Health – Welikanda
  • Rural Hospital  Welikanda
  • District Hospital- Hingurakgoda
  • Wicremaarachchi Ayurveda Laboratory – Weliweriya
  • Royal Chemical Industries- Minuwangoda
  • Office of the Director of District Health Services – Polonnaruwa
  • Ruhunu Royal Food Industries – Matara
  • Rural hospital – Galamuna
  • Ministry of Education,  North Central Province – Anuradhapura

Most of these institutions have bagged national productivity awards.

Programme Details

The basic training programme is of three (03) day duration and additional follow up days are set aside as per the requirements.

Day Programme Description Methodology
01st Day
  • Attitude development of employees
  • Approaching productivity promotion of the institution by consulting views and seeking proposals of the staff.
  • Introducing productivity promotion methods.
  • Developing team spirit.
  • Appointing a productivity development committee.
  • Preparing an action plan for the practical programme to be implemented from the 2nd day.
  • Brainstorming
  • Activities
  • Lectures
  • Videos
  • Practical Examples
02nd and 03rd days Implementation of the first stage of productivity programme together by all employees. (Removing unnecessary documents stocks and equipment. Beginning preparation of files. Arranging stores and preparing specification plan) and allocating additional follow-up dates to ensure success of upcoming stages. All employees implementing programmes practically and making modifications as necessary.
Additional follow-up dates

Improving processes, preparing visual control systems, progress control systems, finalizing the preparation of files end employing the following productivity techniques in addition to S5 concept.

  • Kaizen concept
  • Improvement groups
  • Green productivity
All staff members jointly implement programmes practically and improving processes

Contact Details


: Industrial Development Board
615, Galle Road, Katubedda,
Moratuwa,
 
: +94 112 605 323
: +94 112 607 002

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