3. WHAT IS YOUR ROLE?
The main problem of the entrepreneurs is that they can produce
things but they don’t have any funds to start their business
Your role in the project is help the entrepreneur create a budget, get
to know the minimum amount required to launch the business, loan
the money to the entrepreneur and help the entrepreneur manage his
business by applying principles of lean management
4. STEPS IN HELPING THE
ENTREPRENEUR
Women in Action journey
1. A business analysis to know current situation
2. Develop MVP of product
3. Assess costs of MVP and loan money
4. Financial tracking and business management
5. UNDERSTANDING THE
ENTREPRENEURS
Here, you have to know the entrepreneur to be able to work with them. So here are a few
very important points:
1. RESPECT the entrepreneurs. Sure they want your help, but not your judgment. Do not
make fun of them or their situation
2. Understand their education level. Most of them did not go to school. Understand that
concepts that can come easy for you and not easy for them. Now now, don’t take them
for stupid!
3. Understand that they will have other responsibilities and YOU are not their focus while
THEY ARE YOUR FOCUS!
4. Understand that they tried a lot of times before and failed! Understand that they don’t
feel the best of this and your attitude should help to motivate them!
5. Understand that we don’t have the answers and you are expected to be able to help us
find the answers. Your role is to help him/her find ways to kickstart the business. If
she knew already, she not need our help
6. Understand that your advice is not the ultimate advice. It is up to him/her to do what
he/she wants. Understand also that he/she trusts you and know your power in guiding
them. If you are not sure, DO NOT ADVICE!!!
6. UNDERSTANDING THE BUSINESS
OF THE ENTREPRENEURS
1. The business of the entrepreneurs are not very difficult business.
Most of them are not hard to develop skills. Therefore there is a lot
of competition for this business.
2. Because of No1, that is why the business is very localized. We have
to be able to market to the people close to her. The business is
small scale and would not require big marketing tools such as
adverts in newspaper! So you also have to make your strategies
adapted to this as well! We cannot use TV adverts as an option as
well!
3. A small amount of money might look insignificant to you but this
is the entrepreneurs and often her family’s, living. Your impact is
small for sure, but SIGNIFICANT!
8. IMPORTANT NOTE
This should be done only once. It is possible that a previous intern
already did this. Please read the report before proceeding.
9. CREATING A SIMPLE ANALYSIS
Product
Financial situation
Plans
•What is being made?
•Legal permits?
•Previous sales?
•Any budget?
•Any future plans?
10. MOST OF THE TIME…
In developing the business, our entrepreneurs have no planning.
Sometimes, the legal permits are ignored. That is why we have to start
by helping them develop a plan first of all and then move forward.
Even though they have been running the business for some time, you
can consider the business as a starting one.
12. CREATING THE MVP
Often a times, one of the mistakes the entrepreneurs do is that they
go directly into production.
They will receive a course of making bags for example and instantly
start producing. Afterwards, they will try very hard to sell the products
without much luck and will lose all their investment.
Being a small entrepreneur, this can be devastating. That is why we
have to move even more cautiously and be very cautious in the way
money is spent.
That is why an MVP is of utmost importance. Create an inexpensive
MVP to be able to test the market and at the same time launch the
business. Adopt a conservative approach. Produce only after getting
orders. Do not produce and then try to sell.
14. BUDGET CREATION
First of all, lets look at the cost sides
Establish a clear cost calculation of the MVP and final product (if different)
Don’t forget INDIRECT costs which often is the source of bad financial planning
Secondly, lets establish the sales forecast
1. Establish a price for your product
2. Create an internal and external analysis
3. Create map of customers and competitors
4. Create a 3 months sales forecast using qualitative forecasting
Subsequently, produce a 3 months budget
15. LOANING THE MONEY
The money loaned to the entrepreneur comes from the fundraising
event launched either by a specific team or by the MIFI team.
Along with the entrepreneur, you have to develop a budget for the
business.
The entrepreneur has to sign the contract of the loan agreement. The
amount of loan will be determined by you and the entrepreneur since
you followed the entrepreneur in developing the MVP.
Based on budget, a repayment plan has to also be created.
17. FINANCE TRACKING
On a weekly basis, you have to follow the entrepreneur to see the
development of the business and advice accordingly.
The most important part is to follow the balance sheet and making
sure that accounts are being recorded.