ENTREPRENEURSHIP

DEVELOPMENT (22032)

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 Unit 5
5.1 Unique selling proposition : identification ,developing a marketing plan
5.2 preparing strategies of handling business policy making ,negotiation and
bargaining techniques
5.3 Risk Management: Planning for calculated risk taking , initiation with low
cost projects, Integrated futuristic planning , angel investors, venture
capitalist.
5.4 Incubation centres: Role and procedure.

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Unique Selling Proposition (USP)

• The unique selling proposition, or unique selling point (USP), is

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Why is a Unique Selling Proposition
Important?
• A clearly articulated USP can be an effective tool to help you
shape and focus your marketing goals to successfully set your
brand and products apart from your competition. A USP that
strives to communicate unique benefits to consumers is often
an integral part of a company’s branding strategy that helps it to
stay memorable and form a positive impression in the
consumer’s eyes.
• You know what differentiates your products and business from
your competition, but if you don’t communicate that clearly to
your prospects through all the marketing collateral you create, it
won’t make a difference.

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How to Develop a Strong Unique Selling
Proposition?
A USP is not a tagline, but a good tagline will effectively summarize the full USP in one
sentence to make it impactful and digestible.
The purpose of a USP is to answer one question: “Why should a potential customer buy from
you?”. A successful unique selling proposition can be just a few words (like a tagline) or a full
paragraph, the word count doesn’t matter as long as you capture and clearly articulate the promise to
your customers that makes you different and desirable.
You must undertake market research to find out why your current customers are choosing your
brand over your competition. If you’re just starting out and don’t have customers that could provide you
such insight, research your competitors and look for areas that you could improve and innovate.
Having a clear understanding of what makes your company special from the very start will help you
grow faster, as more customers will buy from you, and achieve a better brand recall.
USPs are often grouped into the following categories: price, quality, service, speed, selection,
convenience, guarantee, customization, originality, and specialization. Pick one that will be at the core
of your promise and work from there.
To crystallize and communicate your unique strengths, ask yourself these questions:
• What problem does my product/service solve?
• What do I offer that my competitors don’t?
• How easy is it for my competitors to copy that?
• Can this strength be communicated easily?
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 Examples of Effective USPs
• Domino’s Pizza: “You get fresh, hot pizza delivered to your door in 30
minutes or less, or it’s free.”
• Target: “Expect More. Pay Less.”
• DeBeers: “A diamond is forever.”
• TOMS Shoes: “With every pair you purchase, TOMS will give a pair of
new shoes to a child in need. One for One”
• Colgate: “Improve mouth health in two weeks”
• Zappos: “The best return policy ever. A return policy that removes the fear
of buying online and buying shoes that might not fit.”
• Dropbox: “Dropbox keeps your files safe, synced, and easy to share.
Bring your photos, docs, and videos anywhere and never lose a file again.”
• Head & Shoulders: “Clinically proven to reduce dandruff.”
• FedEx: “When it absolutely, positively has to be there overnight.”
• M&Ms: “The milk chocolate melts in your mouth, not in your hand.”

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 Preparing strategies of handling business
• Whether you’re looking to set new business priorities, outline
plans for growth, determine a product roadmap or plan your
investment decisions, you’ll need a strategy.

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simple steps to help to deliver an
effective business strategy:
1. Gather the facts
• To know where you’re heading, you have to know where you are right now. So
before you start looking ahead, you should review the past performance, or the
current situation. Look at each area of the business and determine what worked
well, what could have been better and what opportunities lie ahead.
• There are many tools and techniques available to help with this process, such
as SWOT (Strength, Weakness, Opportunities and Threats) analysis.
• You should look internally at your strengths and weaknesses. And for the
opportunities and threats you should look at external factors. A great framework
for looking at external factors is PESTLE (Political, Economic, Social,
Technological, Legal and Environmental). So, for your big idea or plan you would
ask: what threats and opportunities could arise under each category?
• The most important part of this process is involving the right people to make sure
you’re collecting the most relevant information.

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 Steps….
• 2. Develop a vision statement
• This statement should describe the future direction of the business and its aims in
the medium to long term. It’s about describing the organisation’s purpose and
values. Business gurus have debated long and hard about what comes first – the
vision, or the mission statement (see step 3). But, in practice, you could develop
both at the same time.
• 3. Develop a mission statement
• Like the vision statement, this defines the organisation’s purpose, but it also
outlines its primary objectives. This focuses on what needs done in the short term
to realise the long term vision. So, for the vision statement, you may want to
answer the question: “Where do we want to be in 5 years?”. For the mission
statement, you’ll want to ask the questions:
• What do we do?
• How do we do it?
• Whom do we do it for?
• What value do we bring?
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 Steps….
4. Identify strategic objectives
At this stage, the aim is to develop a set of high-level objectives for all areas of
the business. They need to highlight the priorities and inform the plans that
will ensure delivery of the company’s vision and mission.
By taking a look back at your review in step one, in particular the SWOT and
PESTLE analysis, you can incorporate any identified strengths and weaknesses
into your objectives.
Crucially, your objectives must be SMART (Specific, Measurable, Achievable,
Realistic and Time-related). Your objectives must also include factors such as
KPI’s, resource allocation and budget requirements.

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Steps….
• 5. Tactical Plans
• Now is the time to put some meat on the bones of your strategy
by translating the strategic objectives into more detailed short-
term plans. These plans will contain actions for departments
and functions in your organisation. You may even want to
include suppliers.
• You’re now focusing on measurable results and communicating
to stakeholders what they need to do and when. You can even
think of these tactical plans as short sprints to execute the
strategy in practice.

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Steps….
• 6. Performance Management
• All the planning and hard work may have been done, but it’s vital to
continually review all objectives and action plans to make sure you’re
still on track to achieve that overall goal. Managing and monitoring a
whole strategy is a complex task, which is why many directors,
managers and business leaders are looking to alternative methods of
handling strategies. Creating, managing and reviewing a strategy
requires you to capture the relevant information, break down large
chunks of information, plan, prioritise, capture the relevant information
and have a clear strategic vision.

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 Negotiation
• Startup entrepreneurs are not always the best negotiators. They step into
the shoes of a business owner for the first time and find (to their surprise)
that nearly everything involves negotiation of some kind, and they may not
always have those negotiation techniques down.
• Starting a business requires, quite literally, hundreds of negotiations. Some
are small, like securing the best price on printing your letterhead and
business cards. Others are far bigger deals that can make or break your
startup business from the get-go. Sometimes you are the buyer; other
times the seller. Either way, the skills you need to be a good negotiator are
the same.
• For some small business owners, it comes naturally. They’re the ones who
started negotiating an allowance and extra TV time with their parents at
age four. For most of us, however, it comes through effort and experience.
Rarely is it something you learned as part of a formal education.

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 Ten negotiation techniques:
1.Prepare, prepare, prepare. Enter a negotiation without proper preparation and
you’ve already lost. Start with yourself. Make sure you are clear on what you
really want out of the arrangement. Research the other side to better understand
their needs, as well as their strengths and weaknesses. Enlist help from experts,
such as an accountant, attorney or tech guru.
2.Pay attention to timing. Timing is important in any negotiation. Sure, you must
know what to ask for, but also be sensitive to when you ask for it. There are
times to press ahead, and times to wait. When you are looking your best is the
time to press for what you want. But beware of pushing too hard and poisoning
any long-term relationship.
3.Leave behind your ego. The best negotiators either don’t care or
don’t show they care about who gets credit for a successful deal. Their talent is
in making the other side feel like the final agreement was all their idea.

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Ten negotiation techniques:
4.Ramp up your listening skills. The best negotiators are often quiet listeners
who patiently let others have the floor while they make their case. They never
interrupt. Encourage the other side to talk first. That helps set up one of
negotiation’s oldest maxims: whoever mentions numbers first, loses. While
that’s not always true, it’s generally better to sit tight and let the other side go
first. Even if they don’t mention numbers, it gives you a chance to ask what they
are thinking.
5. If you don’t ask, you don’t get. Another tenet of negotiating is, “Go high, or
go home.” As part of your preparation, define your highest justifiable price. As
long as you can argue convincingly, don’t be afraid to aim high. But no
ultimatums, please. Take-it-or-leave-it offers are usually out of place.
6. Anticipate compromise. You should expect to make concessions and plan
what they might be. Of course, the other side is thinking the same, so never
take their first offer. Even if it’s better than you’d hoped for, practice your best
look of disappointment and politely decline. You never know what else you can
get.

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Ten negotiation techniques:
7.Offer and expect commitment. The glue that keeps deals from unraveling
is an unshakable commitment to deliver. You should offer this comfort level to
others. Likewise, avoid deals where the other side does not demonstrate
commitment.
8.Don’t absorb their problems. In most negotiations, you will hear all of the
other side’s problems and reasons they can’t give you what you want. They
want their problems to become yours, but don’t let them. Instead, deal with
each as they come up and try to solve them. If their “budget” is too low, for
example, maybe there are other places that money could come from.
9.Stick to your principles. As an individual and a business owner, you likely
have a set of guiding principles and values that you just won’t compromise. If
you find negotiations crossing those boundaries, it might be a deal you can live
without.
10.Close with confirmation. At the close of any meeting (even if no final deal
is struck) recap the points covered and any areas of agreement. Make sure
everyone confirms. Follow-up with appropriate letters or emails. Do not leave
behind loose ends.

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