Talk to strangers Using a different approach during your lunch break, such as lying on your back outside on the grass Other creativity techniques include brainstorming, surveys, focus groups and customer questionnaires Idea vs Opportunity An idea is a thought, impression or notion for a new product or service. Not all are opportunities. An opportunity is a favourable set of circumstances that creates a need for a new product, service or business Hisrich and Peters define an opportunity as the process whereby the entrepreneur assesses whether a certain product, service or process will yield the necessary earnings based on the resource inputs that are required to manufacture and market it. There are two building blocks in the assessment of an opportunity: The size of the Market: Will the number of customers reward the input and energy required to create and deliver the product? The time (window of opportunity) of the opportunity: Is the demand for the product or service based on a short fashionable phenomenon or is it based on a sustainable business and how long will it take before a competitor grabs the opportunity? The Product: The new innovation or product is the direct result of the process. A multitude of ideas have been generated which are in line with the problem to be solved. The ideas from the creative thinking process are then evaluated and the most suitable one is subjected to the product development process. There are many examples that illustrate the creative thinking process which develops into product form. The new innovation (product) results in changes such as: Fundamental changes: Where for example the development of a vaccine is found to cure HIV/AIDS, or an efficient method that will replace conventional motor car fuel. Incremental changes: Here changes take place incrementally over time such as regular updates of Microsoft Windows software and applications. Wickham identifies critical where innovations might be made: New products: The most evident examples of innovation are found in tangible products. Today customers are flooded with new products on a daily basis. New services: The services industry in South Africa is growing at an immense rate. New production techniques: Innovation is present in the way products are created or manufactured, whether by applying new technological methods and machines or by completely replacing the old. New operating practices: The economy is based on speed and innovation, and the way in which services are rendered, creates an array of opportunities for entrepreneurs. Mobile networks have become an effective customer service tool, for example businesses have the ability to communicate specials directly to its target market via SMSs.
requires protection outside RSA assign someone else to be protected Registration Automatic, but registration with CIPRO has added benefits Essential if it is a new design. Necessary to register with Registrar of Designs and pay the registration fees in revenue stamps Trademarks can be used without registration, but registered trademarks have added benefits Duration of protection Lifetime of the author/creator and for another 50 after death of the author/creator 15 years – aesthetic 10 years – functional Provisional patent is valid for one year and must be followed with a completed patent that covers the inventor for 20 years 10 years Notice to public Necessary to put one’s name, date and copyright statement on original copy and warning notice © Registered designs should be indicated as “registered design” with the registration number Inventions should be marked with “Patent applied for” or “Patent” with the relevant patent number If a trademark is registered, it is indicated as “Registered trademark” and the ® OTHER LEGAL REQUIREMENTS TAXATION Most taxes in South Africa are levied by the central government and administered by the South African Revenue Services (SARS). The Constitution gives some taxing powers to the Provinces such as ‘Assessment Rates’ and ‘Taxes’ in respect of immovable property. The South African government imposes two main types of taxes, namely Direct and Indirect taxes: Direct taxes Individual income tax – annual tax on the income of individuals (also of sole proprietorships) and partnerships. Company tax – annual tax on income of companies and close corporations Secondary tax on companies – tax imposed on dividends declared by companies and distributions made by close corporation, payable and borne by the companies and close corporations Tax on dividends from foreign registered or incorporated companies – including retirement funds and insurers Indirect taxes tax – an invoice-based value-added tax levied on supplies of goods and services
Networking principles: Reciprocity: give and take Networking relationship: Should be on friendship, good humour and sharing interests and activities Network sustainability: Must be constantly maintained, since they are very hard to repair once damaged How to develop an effective network: Identify people and organizations among existing connections who are close to potential shareholders Seek criticism, advice and suggestions Ask them for advice contacts Ask them what preparations are necessary Tell existing contacts later how they have helped Functions of networks in the growth of a business venture Ensures that for growth and vision are realistic Increase the entrepreneur’s level of aspiration Helps to identify opportunities Provide emotional support Provide practical assistance Provide a sounding board for ideas Other networks: Internal networks such as formal and informal structures Internet Resources e.g. Board of directors, attorneys, bankers, accountants, consultants etc BUSINESS SUPPORT REQUIRED BY EMERGING ENTREPRENEURS TO DEAL WITH CHALLENGES Business Counselling: Definition: Business counselling is a process whereby business problems are diagnosed and resolved in such a way that the clients learn not only how to overcome their current difficulties or exploit their opportunities, but also how to tackle similar situations in future. The aim of business counselling is to individual and firm performance, and this is an ongoing process for development. One-on-one meetings should take place between the new venture owner and the experienced entrepreneur. Business counselling objectives should include: Identify problems and their source Evaluate actual performance against expected performance Develop action to bring performance up to minimum expectations Provide expert help in start-up and growth phases and to help fill the deficiency gap and avoid crisis management Business Mentoring Definition: Business mentoring is an ongoing long-term business counselling relationship between an experienced business advisor (or an corporate executive) and a client through the various stages of a business venture’s growth. The aim of business mentoring: is to develop both the managerial and entrepreneurial skills of an individual so that an emerging entrepreneur can grow into a long-term sustainable entrepreneur.