IZM75 Entrepreneurial marketing
Prof.Dr. Ed Nijssen & Dr. Joost Wouters
Organizational issues for survival:
Company structure: As we are 3 entrepreneurs we analyzed the company situation and decided to start with 3 groups.
* Administration and planning
* Finance and accounting
* Logistics andsales
The first one has to be in charge of administration and planning, this area is related to the structure of the company, ways of action and in general the organization (of course big decisions will be consulted with every entrepreneur), but also research for highest possibilities of make business, analyzing the target market and selecting it. They will elaborate detailed explanations ofhow the product works, highlighting the benefits to be shown in presentations to our possible clients, they also take part in trainings for sales persons.
The second area is to be in charge of the finance and accounting. This department must have records of every expense the company do, showing clearly reports to be analyzed for subsequent decisions with the money left, they also have to managethe income, expenses, revenue and in general all the cash flow related with finance in the company. This information is also important to make projections and for accounting requirements.
The third department is in charge of the logistics and sales. Here decisions about what is the best way to reach the market are taken, like where to go first, when, should we attend seminars, which ones, whatis the best way to reach clients (single client, many, or even organizations), how to do it and every action related to aim and convince people. They are focused in make sales, and attending to improve the product from feedback and comments of the costumers.
Every person in the company has to be aware of opportunities and share those with the rest of the members to take action; everyone whohas the opportunity will sell the product.
Size: Initially we are 3 entrepreneurs but while having some experience, sales and grow; we expect to manage the company in the way we’ll show below:
We are going to have one entrepreneur per department, but in the ‘administration and planning’ and the ‘logistics and sales’ areas we’ll hire one assistant per each of those departments.
At the‘finance and accounting’ department we don’t need any assistant because one of our three has already a financial background. That makes a whole group of 5 people to maintain working the company.
Necessary competence: Under the administration and planning, employees must have basic knowledge in administration, entrepreneurial marketing, know about the culture, experience with organization, preferablymember of a natural one or similar, be enthusiastic, be persuasive, calm and ambitious.
Under the finance and accounting sector, the subordinate must possess basic accounting skills, knowledge in taxes, financial planning and budgeting (one of the entrepreneurs already have it so he is the person).
Under the logistics and sales sector, people need to be persuasive, visionary, patient,perseverant, be aware of opportunities, know about distribution and good dealing with people.
Leadership/ownership: At the beginning, there will be 3 owners of the company. The ownership is equally divided into 3. However we are disposed to split it into smaller portions if a sudden investment is required. As we said before, one of the three entrepreneurs will be in charge of the administration andplanning department; he will be the manager and will lead the company.
Capital: We need a capital of at least €40,000 for start and survive the first year, we have to pay the rent of the place, water, electricity, transport, the cost price of each stock, and in general all the expenses. Hence we will get at least 1/3 of the capital from ourselves, our families and friends. Then we still...