ENTREPRENEURSHIP DEVELOPMENT PROGRAM (EDP) – FACULTY HANDBOOK

Entrepreneurship Development
Program (EDP)
National Institute for Entrepreneurship and Small Business Development
Noida Office: A-23, Sector-62, Institutional Area
Noida - 201309, NCR of Delhi, U.P, India
FACULTY HANDBOOK
 Entrepreneurship
Development Program
(EDP)
FACULTY HANDBOOK

National Institute for Entrepreneurship and Small Business Development

Noida Office: A-23, Sector-62, Institutional Area
Noida - 201309, NCR of Delhi, U.P, India
April 2022
Published by
National Institute for Entrepreneurship and Small Business Development (NIESBUD)
A-23, Institutional Area, Block A, Industrial Area, Sector 62, Noida, Uttar Pradesh 201301
https://www.niesbud.nic.in

© All rights reserved. The contents and perspectives in the curriculum do not necessarily represent
the views of the National Institute for Entrepreneurship and Small Business Development
(NIESBUD). The curriculum may be quoted, in part or full, by individuals or organisations
for academic or advocacy and capacity building purposes, with due acknowledgement to
NIESBUD. For other uses and mass distribution, prior permission is required from NIESBUD.
This curriculum is for information only and is not to be sold or used for commercial purposes.
 Objective of the Content

Entrepreneurs are considered ‘agents of change’ driving economic growth,

helping create jobs, improving the standard of living of people, contributing to
innovation and skill development. They creates pathways for better technologies
and systems which in turn leads to improved quality of life, improved morale, and
greater economic freedom for a larger number of people in a country.
The objective of the course is to be able to inspire students and to create in them
an entrepreneurial mind-set. An entrepreneurial mind-set is the need of the hour
since it is crucial steps to ensuring socio-economic, and financial sustainability of
the generations to come. The idea of innovation can also contribute to innovate
ways to achieve sustainability for the planet as a whole.
This course aims at the holistic development of students through its unique and
extraordinary style of delivery and implementation.
It encompasses various topics:
Æ to create an entrepreneurial mind-set in students taking the course
Æ to help students recognize entrepreneurship as an opportunity and alternative
to employment
Æ to help students understand the nature and scope of entrepreneurship
Æ to help students identify their latent entrepreneurial qualities
Æ to help students develop the skills required towards becoming successful
entrepreneurs
Æ to help students partake in hands on activities to understand various aspects
of entrepreneurship
Æ to introduce students to life skills which would aid them further their career
prospects as well as in their personal lives
Æ to equip students with adequate knowledge, skill, and attitude to establish
and develop a business through identification of ideas, means and resources

Nature of the Content

The content in this handbook is expected to be engaging, interesting, effective and

participatory. It is a mix of activities, key concepts, case-lets, role-plays, reference
videos (digital), etc. It is intended to create a well-structured curriculum that
includes psychosocial awareness, motivation, as well as, technical guidance in the
concepts involved in Entrepreneurship, its various aspects, and components. The
content should provide budding entrepreneurs with the skills and know-how to
come up with business ideas and develop their strategies to eventually create their
own business ventures.
Some of the broad features envisaged while developing this content include:
Æ Activity-based, hands-on learning-by-doing approach, that will give students
technical know-how along with unprecedented confidence to take the next
steps.
Æ Inclusion of psycho-social aspects, life- skills, self- awareness, idea generation,
adaptability, effective communication, and confidence etc. that not only helps
them embrace upcoming opportunities to be successful entrepreneurs but
also prepare them to tackle the challenges that are likely to come their way.
Æ Inclusion of concepts of Entrepreneurship through day-to-day examples and
relatable situations,
Æ Usage of simple language and inspiring success stories of people who have
risen from the ground up and of grass root level enterprises that have gone to
become phenomenal successes.

Key Features of the handbook

Æ An activity based learning experience for the students

Æ The content covers both aspects – changing the attitude/behaviour of
students and inculcating basic entrepreneurial skills
Æ Gauging students’ perception on entrepreneurship, their dreams and idea of
success and shaping it into actionable points
Æ Providing insight into the current ecosystem and existing policies related to
entrepreneurship and teaching students to work with them
Æ Motivating students with stories of success and case studies
Æ Helping students identify their own potential as entrepreneurs.
Æ Helping students understand the basics of finance, banking, and loans.
Æ Providing students knowledge on preparation, as well as, presentation of
Business Plans

Pedagogy of the Content

The course is developed to go beyond the regular monotonous classroom teaching

to deliver “Entrepreneurship” to students to meet the above stated objectives. The
pedagogy of the sessions is designed as such to ensure utmost effectiveness and
ease in understanding. The overall pedagogical structure and strategy includes:
Æ Group Work
Æ Learning by Doing activities
Æ Audio-Video aids
Æ Classroom activities, and
Æ Field work
The mode of delivery will be interactive, where faculty will act like facilitators rather
than teachers. The facilitator would work to engage the whole class and motivate
students towards entrepreneurship. The students will be encouraged to share their
thoughts without hesitation. The use of group activities, movies, and field work will
give students real life experience. The case studies would help them relate to
situations and channelize their ideas and thoughts towards one productive goal.
 Notes for the Facilitator

1. Understand your Audience: Each student comes from a different back-

ground. They have different perceptions about everything. The facilitator
needs to understand and respect each point-of-view.
2. Participatory Approach: The facilitator should encourage every student to
share their thoughts and experience equally.
3. Conducive Environment: The facilitator and students should be comfortable
in discussing life experiences and views with each other without any fear of
judgment.
4. Self Awareness: Help the students relate to the activities given and
contemplate over them so they may develop their personalities on the whole.
5. Planning: Ensure adequate classroom planning in advance to avoid last
moment rush and blind-spots during the class.

Teaching Fundamentals

Æ Teach students to use technology to bring down barriers and challenges.

Æ Teach them to expand their learning and be curious. More knowledge
means a better informed entrepreneur.
Æ Focus on offline as well as online sessions.
Æ Additional knowledge session may be encouraged online.
Æ Teaching should be done, in phased wholistic manner. Teach as one, with
focus on individuals.
Æ Measure, understand and share every student’s growth.

Acknowledgments

We acknowledge the valuable contributions of the following organizations in

developing this content.
Æ  Pravah
Æ  Aleap
Æ  IIE
Æ  Vruksh
Æ  Kudumbashree Micro enterprises
Æ  Quest Alliance
Æ  Total Start
Æ  CED Madurai
 Contents

MODULE 1 SESSIONS 7 hours Pg. 1

1.1 Getting to know one another 1 hour 35 minutes Pg. 2

1.2 Entrepreneurial Motivation 2 hours 10 minutes Pg. 11

1.3 Self Exploration/ SWOT 1 hour 15 minutes Pg. 25

1.4 Access to Equity and Inclusivity 60 minutes Pg. 34

1.5 Understanding the Entrepreneurial Journey 60 minutes Pg. 40

MODULE 2 SESSIONS 2 hours 50 minutes Pg. 47

2.1 Entrepreneurship: Meaning and Types 1 hour Pg. 48

2.2 Business Opportunity Identification 1 hour 50 minutes Pg. 55

MODULE 3 SESSIONS 9 hours Pg. 59

3.1 Innovation 1 hour Pg. 60

3.2 Empathy 1 hour Pg. 68

3.3 Risk Taking 1 hour Pg. 73

3.4 Problem Solving 1 hour Pg. 80

3.5 Negotiation 1 hour Pg. 84

3.6 Perseverance 1 hour Pg. 88

3.7 Communication 1 hour Pg. 92

3.8 Understanding Failure 1 hour Pg. 101

3.9 Financial Literacy 1 hour Pg. 108

MODULE 4 SESSIONS 14 hours 30 minutes Pg. 117

4.1 Demand and Supply 2.30 hour Pg. 118

4.2 7 P’s of Marketing 2+2 hour Pg. 128

4.3 Costing and Pricing 3 hour Pg. 138

4.4 Break-even Analysis (IIE) 1 hour Pg. 148

4.5 Accounts and Bookkeeping (Aleap) 1 hour Pg. 156

4.6 Operations Management 3 hour Pg. 161

MODULE 5 SESSIONS 9 hours 30 minutes Pg. 179

5.1 Idea Generation 2.30 hour Pg. 180

5.2 Preparing a Business Plan 2+2 hour Pg. 189

5.3 Presenting the Business Plan 3 hour Pg. 199

MODULE 6 SESSIONS 2 hours Pg. 211

6.1 Govt. Scheme and Programs 1.5 hours Pg. 212

6.2 Steps to Set up your Enterprise 30 mins Pg. 219

 Module 1
Self Reflection and
Self Analysis
MODULE 1 SESSIONS 7 hours Pg. 1

1.1 Getting to know one another 1 hour 35 minutes Pg. 2

1.2 Entrepreneurial Motivation 2 hours 10 minutes Pg. 11

1.3 Self Exploration/ SWOT 1 hour 15 minutes Pg. 25

1.4 Access to Equity and Inclusivity 60 minutes Pg. 34

1.5 Understanding the Entrepreneurial Journey 60 minutes Pg. 40

 Session 1
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Getting to know one another

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Classroom Handouts, 1 hour 35

activities, blindfolds minutes
quizes

Aim of the Session

Æ To introduce students to each other
Æ To encourage students to open-up to one another and be
comfortable while sharing their thoughts
Æ To help students establish their common objective, and
Æ To facilitate an understanding of the requirements of EDP.
 Session Objective
Æ To introduce the facilitator and trainees with each other

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Æ For the participants familiarize with each other and learn importance of
interaction in the learning process
Æ For the participants to understand why they have enrolled for the
program and what they may expect from it
Æ To consolidate expectations and establish common aims transforming
a heterogeneous group into a homogeneous one

Expected Outcomes
Æ Participants should feel comfortable in the training, showing initiative and
enthusiasm towards the learning process
Æ Participants should understand that the common objective of this journey is to
build an entrepreneurial mindset and enhance the skills that go with it.
Æ Participants should understand what they may expect from the program.
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 ICE - BREAKING
PAGE 4
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What is Ice - Breaking?

Ice-breaking is an important idea that helps participants in getting to know
one another.
It takes youth a significant amount of time to get comfortable and openly
share their views and personal stories in front of their peer group and faculty.
They feel judged and there is a need to make them feel comfortable and
welcomed in the new setting.
You, as the facilitator, play a critical role in guiding these young learners
discover their entrepreneurial skills and motivating them to inculcate an
entrepreneurial mindset.
Ice breakers are warm up exercises, activities, and games that are designed
to ease your interaction with your group of participants and promote
comfortable communication amongst the participants themselves.
Ice breakers can help participants, who are strangers at this stage, know
something about each other and build on that information to engage with
one another by way of conversation.
Ice breakers can also be theme or topic based and may be used to introduce
a new topic to the group.
 Why are ice-breaking exercises important to EDP?
Ice breakers create a trustworthy environment, where students get to know
each other by sharing their personal interests, hobbies etc. They facilitate
interaction and building of new friendships.
Ice breakers help to convert a heterogenous group of audience into a
homogenous group. Icebreakers are helpful when people do not know
each other and when we want them to own the outcomes of the activity.
They help to decrease tension and discomfort and increase bonds amongst
participants.
Before starting on the journey of understanding entrepreneurship, the
facilitator should use ice breaker activities that helps in the creation of a
trusting, comfortable environment, in which students feel safe to experiment
and engage with each other and the facilitator.
Ice breakers are also helpful to break the audience out of a dull or bored
state especially during early mornings or after lunch. Facilitators must open
each session with a personal anecdote; and share their personal fears and
challenges, to encourage the youth to do the same.

ACTIVITY 1 : INTRODUCTION

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Material Required
None

Activity Objective
Æ Introducing the participants and helping them familiarize with
each other through a game
Æ Promoting active participation and longer engagement with
and amongst the group

Process
The game requires that the participants introduce themselves to
the group and use an objective to describe themselves using the
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first alphabet of their name.

1. Tell the participants: “Let us begin our introductions. As I go
from one to the other in your group, please stand and tell your
name. You must add an adjective that describes you and starts
 with the same alphabet as
your name. For example,
PAGE 6

‘Hi! I am Divya, and I am

diligent.’ Or ‘Hi, I am Harish,
and I am hardworking’.
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Note: In case the participants

are not able to come up with an
adjective starting with the same
alphabet as their name, they
may use any other alphabet for
the word which describes them.

2. At the end of the activity, encourage any 2 or 3 participants to name

all the participants again. Let others join in in an orderly manner. The
purpose is to learn and remember each other’s names and quality.

Facilitators’ Note

Before beginning the activity:

1. Make sure that the training room has chairs.
2. You, along with your co-facilitator will arrange the chairs in a semi-circle.
3. Place your chairs in the middle of the circle so you may give equal
focus to all participants.
4. You may move to the sides or move amongst the participants depending
on how you want to conduct the training.

Post Set Up:

After the set-up is done and participants are seated, welcome the group
by thanking all the participants for being present for the training. Introduce
yourself to the group. For example, you may say, “Hi! My name is ABC, I am a
master-trainer and working as ... in XYZ company. I am from.... It is a pleasure
to meet all of you. Thank you for coming. I will be your facilitator through this
50 hrs training course. I will be conducting the training along with my co-
facilitator (their name). We will soon get into the details of training but before
that, let us do a round of introductions followed by an interesting game that
will help us know each other better.”
 ACTIVITY 2 : ICE-BREAKING 1

Material Required Duration

Handout 30 min

Activity Objective
Æ The activity would help students to know each other well in
a fun manner. This will result in more active participation and
longer engagement periods.
Æ It would help set the students expectations from the program.

Process
Æ Ask the students to face the
person sitting next to them
forming a pair.
Æ Once all students are sitting
in position, ask them to talk to

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their partner for two minutes.
They may choose a topic of
their liking.
Æ Say START to get them to begin.
Æ After 2 minutes say STOP.
Æ Now ask one student to remain
seated and the other to find another partner in the group. Once
the class has settled with their new partners, say START.
Æ After 2 minutes say STOP.
Æ Repeat this activity still each student has talked to at least 5
other students, enncouraging participants to talk to people
they don't know well.
Æ Write the following questions on the board for students to use
as conversation starters.
T What is your name?
PAGE 7

T How many members are there in your family?

T What is your dream holiday destination?
T If you won a million rupees in a jackpot, what is the first
thing you would buy?
 T If you could spend the day with an actor/ actress, who would it
be?
Æ Now introduce yourself to students and ask them:
PAGE 8

T What was your take away of this activity?

T Why do you think you have gathered here and what do you expect
from this program?
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Facilitators’ Note

Tell students about Ice breaking and some of the fun things you'll be doing
in class. In addition, tell students a few personal things about yourself, for
example, your likes and dislikes, what you did over the summer, and your
hobbies. The idea of this activity is to unfreeze the participants.

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ACTIVITY 3 : BLIND-FOLD ACTIVITY2

Material Required Duration

A blind fold/ cotton cloth 30 min
to cover the eyes of
participants

Activity Objective
To understand the common objective of this journey – to build an
entrepreneurial mindset and skills.

Process
1. Ask all the students to have a blind-fold (or any other cloth, for
example, a handkerchief) ready.
2. Now ask them all to stand at random places in the room. Ensure
that all of them have adequate space around themselves to be
able to move a little in every direction.
3. Now ask them to cover their eyes with blindfolds and make sure
that they are not able to see.
4. Ask them to move as per your following instructions:
T Take 1 step to your right
T Take 1 step to your right again
T Take 2 steps back.
T Now take an about turn at where you are.
T Now take 2 steps forward
T Rotate 90 degree to your left

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5. Note that everyone is now facing in different directions.
Note: you may change the direction of movement or add to this as per the response
of your class.

6. Ask the students to point in the direction of classroom’s door (or any
other object).
7. Now ask them to remove their blindfold and see what direction they
were pointing in.
8. Ask them to reflect on the fact that they may be pointing in a direction
different from what was asked.
9. Discuss:
T As you saw that some of us could locate the door and some
PAGE 9

couldn’t, what do you think was the reason?

T Those who could point at the door, what enabled you to do that?
T Those who couldn’t, what’s the reason?
 Facilitators’ Note
PAGE 10

After taking few responses, conclude: “All of you who were unable to point
at the door had different reasons for it. They may be that you did not notice
the direction of the door at the beginning, or that you missed a step or
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misunderstood a direction, and so on.

Staying focused is one of the most important requisites to achieve anything.
No matter how many turns life gives, we must strive towards our larger goal.
Just like all of us pointed in different directions based on the same set of
instructions, we all have different expectations and are looking for different
experiences from this journey. As we move forward in the program, we
might sometimes feel lost or confused. Remembering our larger purpose at
such times will help us get back on our feet.
Our larger purpose here is to build an entrepreneurial mindset and enhance
our entrepreneurial skills so we may enable ourselves to start our own
enterprises.”

Conclusion
The activities help to create a trusting and relaxing environment wherein the
faculty gets to know the students, and the students lower their barriers to
engage with the faculty and each other.
The activities help the students understand the common purpose of the
Course – Creating an entrepreneurial mindset and entrepreneurial skills and
understand why each of them have enrolled in the Course.

2 Pravah
 Session 2
Entrepreneurial Motivation

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Classroom activity, Handouts, 2 hours 10

case stories, sessions Bindis or minutes
by entrepreneurs marker

Aim of the Session

Building student’s aspirations and motivating them to get out of
their Comfort zones.
PAGE 11

Session Objective
Æ Participants will be able to highlight their strengths, goals,
aspirations, qualities etc.
 Æ They will learn about the entrepreneurship journey and understand
things from an entrepreneurial perspective.
Æ They will be able to articulate their entrepreneurial aspirations
PAGE 12

Expected Outcomes
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Æ That participants understand the efforts that go into aspiration building.

Æ That they show interest in exploring more about entrepreneurship.
Æ High motivation and readiness to step out of their respective
comfort zones.

What is Entrepreneurial Motivation3 ?

Motivation is the driving force that gets people to act in the ways they do. The
level of motivation varies from person to person, and with time. Motivation
is an internal urge that pushes an individual to undertake something new or
strive to perform better than others.
Both positive (such as sudden financial abundance) or negative motivations
(like scarcity) may make a person take a risk and start a new business.
Non-financial motivational factors may include status, respect, prestige,
responsibility, etc.
Entrepreneurs are considered change agents who understand the
importance of building something new from scratch. They understand the
importance of going the extra mile to achieve their life’s aspirations, and do
not mind putting in the effort despite the challenges involved.
“Entrepreneurial motivation may be defined as the process that activates
and motivates the entrepreneur to exert a higher level of effort for the
achievement of their entrepreneurial goals. It refers to the forces or drive
within an entrepreneur that affect the direction, intensity, and persistence of
his / her voluntary behaviour as an entrepreneur.”

Why is Motivation important?

ASPIRATIONS AND MOTIVATION4 :

Some individuals put in minimal effort to achieve their goals. They prefer
to maintain the status quo. Some others who have high aspirations put
their best efforts to make their dreams come true. One can fulfil their life’s’
aspirations, take control of their career horizons by taking charge of their
goals, and striving to overcome struggles on the path by giving only their

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best efforts time and time again.
To be successful, entrepreneurs put in their best foot forward and aim to
achieve goals which are beyond their reachGoing the extra mile is beneficial
in gaining greater compensation than others, especially when they render
exceptional service. Customers appreciate this and come back with their
business, while for the entrepreneurs “excellence” becomes a habit.
Strong entrepreneurial motivation is
indicated by the presence of desire to
take responsibility or initiative and to
keep progressing forward by learning
from failures.
By listing out our aspirations for life, we
take a personal initiative, a claim to our
destiny. We abstain from depending
on what other people want us to do or
following the rut . As we become more
self-reliant our worries about rejection
PAGE 13

and criticism reduce. This in turn reduces

our fear of failure which is the main cause
behind procrastination. When we avoid
procrastination we avoid failure.
 Taking control of one’s aspirations is the first step. And it is as important as
the efforts one puts in, in the making of successful entrepreneurs.
PAGE 14

Comfort Zone

Fear is one of the biggest barriers to starting a new business. Fear is an

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impediment that crops up when we get ready move ahead. It is an unreal

blockade that comes up whenever we try to get out of our Comfort Zones.
Our mind makes excuses for ‘why we shouldn’t’ or ‘why we can’t’ due to a
lack of self-confidence. This often times holds us back.
We feel safe and in control in our comfort zone, as here we are at an
acceptable level of risk. But if we continue to stay in our comfort zone we
fail to learn. We can grow, only when we move out of our comfort zones to
set high goals and acquire new skills to progress forward.
Successful entrepreneurs are known to overcome this block and take
initiative to create a product or set up a business by taking significant but
calculated risks.

Glowth Zone
New
Live Dreams
goals set

Learning Zone
New goals set
Get new
Deal with new
skills
problems

Fear Zone

Comfort Zone

Finds excuses, Lack

of Self Confidence
Any of the activities listed below can be conducted with the students to
inspire them to become entrepreneurs, enable them to enumerate their
aspirations and to fulfil their aspirations by discovering an understanding of
their comfort zones.
3 & 4 Pravah

ACTIVITY 1 : STEPPING OUT OF

YOUR COMFORT ZONE5

Material Required
Paper, pen

Process
Æ Divide students in pairs.
Æ Ask them “What do you think is meant by a comfort zone?”
Look for responses.
Æ Possible responses may include, doing what is easy, familiar
and avoiding something new or that feels comfortable, etc.

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Elaborate further by asking, “Can you think of a situation where
you have remained in your comfort zone?” Ask them to write
down a heading ‘My Situation’ and then the answer to this
question under this heading You may provide some examples
like – trying out to be a part of the school sports team, or an
audition for a play, or not going to a social get together, not
being able to speak in public, being afraid to ask questions to
the teacher in class.

PAGE 15
 Æ Once they have written their piece ask them to share it with the class.
Æ Now ask “What is it that kept you in your comfort zone?” Ask them to
discuss their answers in pairs and write down their answers. Ask them
PAGE 16

to share it with the class. Possible responses can be; fear of failure, fear
of bullying, lack of opportunity, lack of confidence, habit, shyness, etc.
Æ Next ask, “What would have been the benefits if you have stepped out
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of your comfort zone? Ask them to discuss in pairs and write down. Ask
some student to share their responses with class. Possible responses
can be: achievement, pride, learning, fun, success, more confidence,
greater self-esteem, sharing with others, etc.
Æ Now ask, “What would help you to move out of your comfort zone?” Ask
them to discuss with their partners like before and then share it with
the class. Elicit some responses. Possible responses can be: identifying
some interesting goals, having a reward for trying, self-challenge,
understanding the difference between win/lose and win/learn.
T Win/lose – We try something and succeed or fail. When we fail
we feel low and dejected and do not want to try again. As we get
older, we internalise these feelings, and become more risk averse
based on our experience of ‘failing’.
T Win/learn – We try and remove the emotional low often
associated with failure. When taking action or trying something
new we think of the outcome just as a hurdle. We understand
that this result, irrespective of the outcome is here to teach us
something. We begin to learn and adapt.
Æ Ask the class, “If you were to face your challenges again, what might
you do next time to improve your result – what learning can you
take from your earlier experience and use positively? Tell them that
understanding their challenges and learning from them takes time and
practice but is a skill that most high achievers possess.

Facilitators’ Note

Conclude the Activity be explaining that achievers go the extra mile, strive
to achieve beyond their reach, putting in a 100% of their efforts. Leave them
with this thought, “How much effort are WE willing to put in what we want
to achieve?”, because this is of utmost importance in achieving our desired
goals.

5 NIESBUD
 ACTIVITY 2 : STRETCH EXERCISE (PART 1) 6

Efforts are as important as aspiration itself. Many a times, one tries and
achieves something with some efforts but does not give her/his best shot.
To fulfil one’s aspirations, one has to strive to give make the maximum effort.

Material Required Duration

Packet of Bindis or highlighters 10 min

Process
Æ Ask the students to stand close to a wall.
Æ Give them the following instructions
1. “Try and touch a point on the wall as high
as you possibly can with both feet on the
ground (though you can stand on your
toes)”
2. “When you think you have reached the

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highest point paste a bindi on that point”
3. “Make sure that you can identify your
bindi as you will need to use it again later
during the day”
Æ Ask the students to look at various bindis on
the wall. Ask them the following questions:
1. “What can you see on the wall?”
2. “What did different people do when asked
to touch the highest point on the wall?”
3. “What do the different marks on
the wall imply?”

Facilitators’ Note
Explain, “As we can see from the wall, some people tried to stretch
themselves very much, while others not so much. Similarly, around
PAGE 17

us we see that different people have different aspirations. Some

people have high aspirations and take that extra mile and effort to
work towards it while others are satisfied with what they have or what
they currently believe in.”

6 Pravah
 ACTIVITY 3 : INDIVIDUAL REFLECTION
PAGE 18

Message Duration
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One can meet their 10 min

aspirations if they
decide to.

Process
Æ Ask the students to think of one childhood aspiration that they
have fulfilled.
“Think of one thing that you thought you wanted to do and
managed to do it and how did it. It could be as simple as riding
a cycle or being able to take part in an activity in school.”
Æ Take a few responses from those who are willing to share,
to ensure students have understood what they need to do.
(The teacher also is encouraged to share one of her/his
personal aspirations that they have been able to fulfil, before
asking the students to share their responses. This will help the
students ease up and make them more forthcoming with their
responses).
Æ Pair sharing (5 minutes): Ask students to sit in pairs and share the
reflections of these childhood aspirations with each other.
Æ Ask some students to share their reflections with the entire class.
Æ Draw attention to the effort that the individual made to fulfil
her/his aspiration

Facilitators’ Note

Wrap up by saying that ‘It is possible to fulfil one’s aspirations, if one really
decide to.’ It is possible that they were supported by other people or there
were other favourable factors that helped, but still their effort to reach out/
plan/ take the first step needs to be highlighted. Aspirations are fulfilled
when we address them with a wholehearted effort. Others can mentor or
support us but ultimately it is our effort that serves as the biggest factor in
our success.

ACTIVITY 4 : THE STORY OF

DASHRATH MANJHI

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Taking charge of one’s life helps in broadening one’s horizons. Struggles are
a part of this process; however, they should not serve as a deterrent in the
path, one must give it all they have!

Material Required Duration

Case study or movie 30 min

Process
Show the Manjhi movie or read out Dashrath Manjhi's story: “Manjhi
was a landless Dalit labourer from the Musahar community
of village Gehlaur near Gaya in Bihar. A 300 feet tall mountain
stood between Manjhi’s village and access to basic facilities like
transport, healthcare, and better opportunities. Manjhi like many
other landless men in his community tilled the land for a landlord
PAGE 19

on the other side of the mountain. The daily trek took hours, but
everyone did it because there was no other choice.
It was a hard life but all the residents of Gehlaur were resigned to
their fate. Manjhi’s wife Phaguni would bring lunch for him every
day after a long trek up and down the same mountain. One day
 she slipped and fell over
the uneven, rocky path and
injured her leg. That was
PAGE 20

the day that Manjhi decided

to do something about this
‘mountain of a problem’.
He would not wait for the
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Government or anyone else

to fix it. He bought a chisel, a
hammer, and a crowbar after
selling his goats which were
a vital source of his income.
He began work early in the
morning and then later in the
evenings after putting in a full
day’s labour at the Landlord’s.
He would be exhausted as it
was hard work, and he barely
slept. Slowly word got around
and people start bringing
Manjhi and his wife food. He
had to quit his wage labour
job as the extreme physical
labour started to take its toll.
And yet, Manjhi diligently
went to chip away the mighty
mountain from morning till
night, day after day!
Meanwhile, Phaguni took
ill and died before she
could reach a hospital, a critical 75 kms away by road. Though immensely
saddened by his wife’s death who in many ways was the inspiration for
his herculean endeavour, this setback only hardened Manjhi’s resolve. He
would sometimes offer to carry things for people across the mountain for a
small sum to make ends meet.
And then the impossible happened! After 10 years of relentless chipping
away at the monolith, there was a breach, and one could suddenly see
through the mighty mountain. As the gap widened more and more people
came to see it and even offered help.
It would be another 11 years before the ‘Mountain man’ or Baba as he now
came to be reverently called, would cut through the rock and stone and
make a road 360 feet long and 30 feet wide through it!
Wazirganj, the nearby town was now within a 5 km reach and so were schools
and hospitals and a world filled with opportunities. It took 22 arduous years,
but Dashrath Manjhi accomplished what he had set out to do!”
Ask the following questions:
Æ “How was the film/story? What did we just see in the film/ story?”
Æ “What motivated Manjhi to do what he did?”
Æ “How did the people around him react to his efforts?”
Æ “How did he realize his goal?”
Æ “Any insights for self? Any thoughts that the film has generated for you,
that will be useful in your everyday life?”

Facilitators’ Note

Tell the participant that they must internalise the value of hard work and not
feel let down or broken due to struggles on the way. Ask them to remind
themselves of the following along their individual journeys:
“Since it is my life, I need to take full charge of it and continue to work towards
fulfilling my dreams. Struggles are a part of this process; however, I have to
put in my 100% because it’s my aspiration.”

ACTIVITY 5: STRETCH EXERCISE (PART 2)

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Process Duration
30 min

Æ Ask, “Do you remember the wall activity we did in the first
part of this day? Let us do that activity again”.
Æ Ask the students to stand near the mark that they made on the
wall. Now ask them whether they think they can reach slightly
higher than their original mark?
Æ Inform that “if they are able to reach higher than their original
mark, they should mark the new point with a different bindi”.
Inspire them to be creative and reach higher.
Now ask the students to go back to their seats and ask them the
following questions:
How many of you were able to reach higher than
PAGE 21

Æ
your original point?
Æ What helped you reach higher this time?
PAGE 22
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Facilitators’ Note
In case some students may respond by saying that competing against one
another helped them. Explain to them that while competition is important
it will only be helpful if they are competing against their earlier best. If they
compete against someone else they will only have to make efforts to go
beyond what the other person has done and it may be the much less than
their best. Their potential may actually be much higher.

Reiterate
Efforts are as important as aspiration itself. Many a times we try and achieve
something with some efforts but usually we don’t give it our best shot. To
fulfil our aspirations, we HAVE to make an effort and continuously push our
boundaries, aiming for betterment and self-improvement.
 ACTIVITY 6 : ARTICULATE ASPIRATIONS

In this activity Students list down their aspirations from life as well as their
aspirations as an entrepreneur.

Material Required Duration

Sheets of paper and pens 20 mins

Process
Now that the students understand the idea of taking charge of their
lives and the importance of making continuous efforts to fulfil their
aspirations, ask them to write down on a sheet of paper:
Æ Their aspirations and dream/s in life and, also their aspirations
as an entrepreneur.
Æ The efforts they are ready to put in to fulfil these aspirations
Æ What challenges they think they might face.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

ACTIVITY 7 : SESSION BY LOCAL ENTREPRENEUR

Material Required Duration

Audio Visual aid, Room, 1 hour
Local Entrepreneur.

Activity Objective
To motivate the students through live interaction with a local
entrepreneur. Learning how the journey of aspiring began for the
entrepreneur and the efforts they made to realise their dreams.

Process
PAGE 23

Invite a local entrepreneur or a successful alumni of the Institute

for group interaction. The entrepreneur may share the journey of
their start up, challenges faced, and how they overcame these
challenges.
PAGE 24
MODULE I: SELF ANALYSIS AND SELF REFLECTION

1. You can request the speaker to answer the following questions in their
interaction for the benefit of your students:Brief introduction about their
business.
2. How did they get this idea?
3. What did they do to convert it into a business? Steps that they followed
to convert it into reality?
4. The key challenges they faced?
5. How they overcame these challenges?
6. What kept them going then, and now?
7. Any learnings that they can share that might help the class?
 Session 3
Self Exploration/SWOT

MODULE I: SELF ANALYSIS AND SELF REFLECTION

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Classroom Audio- Video Aid, Material box 1 hour 15

activity, case (bangles, threads, ribbons, minutes
stories rangoli, dupatta, feathers etc),
charts & colour pens

Aim of the Session

This section introduces the participants to their interpersonal
strengths and areas that need improvement to enhance their
PAGE 25

awareness of self. It highlights the relevance of identifying internal

and external barriers and resources impacting a participants’
entrepreneurial initiative as well as functioning.
 Session Objective
PAGE 26

1. To understand the importance of figuring out one’s basic

strengths and weakness
2. To facilitate an understanding of self.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Expected Outcomes
Æ That participants understand the concept of self SWOT.
Æ That participants are able to enhancing self-awareness in themselves.

SWOT Analysis
(Strengths-Weakness-Opportunities-Threats)
This session helps the students recognize
the importance of evaluating their strengths,
weakness, opportunities, and threats. The
objective is to help them access these in the
context of their current situations and to help
then formulate strategies to effectively build
upon their strengths/ opportunities and to
overcome their weakness.
Once an idea or opportunity is realized, it needs
to be qualified or assessed. Not every idea has
the potential to transform into a real business,
generate income and be sustainable. Out of
all the ideas or opportunities and after careful
scrutiny, one idea or opportunity is taken to
the next stage where it is developed into a real business through meticulous
planning and action. There are many factors upon which an idea is qualified
and then developed. A simple but popular way to evaluate an idea is through
SWOT analysis.
While doing a SWOT analysis make a list of the participant’s strengths and
weaknesses. This will help them evaluate their ideas such that they match
their capabilities.
The idea is further assessed on the next part of the SWOT Matrix i.e., via
opportunities and threats.
Opportunities refer to the chance an idea has to become a successful
enterprise. Threats can be understood as the hurdles to an idea or an
enterprise. These may make themselves visible in the development phase,
hamper functioning and keep the idea from becoming a profitable venture.
 Why is it important
SWOT analysis is a powerful personal development tool. Not only can it
help you identify your strengths and weaknesses, it can help you discover
a direction for personal and/or professional development that suits your
personality and your unique set of skills. It will also point out areas of
concern for you to address. Equipped with this knowledge you are likely to
make better choices in your career as well as life.

ACTIVITY 1 : STORY :
“REALIZING ONES'S POTENTIAL”

Material Required Duration

None 15 min

Activity Objective
To understand the importance of figuring out your basic strengths
and weakness and thinking about how you can capitalize on them.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Process
Read the story aloud (more than once if required)
There was an old woman who was very fond of her
little grandson. Every day she kissed
him and said goodbye when he
left to school and stood at
the door waving out to
him and watchching
him until he was out of
her sight. One day as
she stood watching,
she saw to her horror
a car traveling at a
high speed get out
of control and hit the
PAGE 27

little boy. The boy

fell and the wheel
went over his heel
before the car came
 to a halt. The grandmother rushed to the accident spot and watched in fear
as the crowds that had gathered tried hard to lift the vehicle off the crying
boy’s foot without any success. The old woman who could not bear to see
PAGE 28

her beloved grandchild in pain put all her efforts to move the car. To the
amazement of the crowd, she lifted the front of the car off the boy’s foot and
freed him. Everyone cheered her but the old woman began to cry loudly.
When she went home, her son asked her why she was crying, instead of
MODULE I: SELF ANALYSIS AND SELF REFLECTION

being happy for having done such a miraculous thing to save her grandson.
She replied “I have wasted 70 years of my life not knowing my own capacity.
If I had discovered it when I was young I would have put my best efforts to
chase my dreams and not given up so easily”..

Facilitator’s Note
Ask the students:
Æ Why do you think the old woman was crying?
Æ What did you learn from the story?
Æ Is it important for one to know what their strengths are? Why?
Æ What about the importance of knowing ones’ weakness? Why?
Æ How can you use the knowledge of your strengths and weakness to
achieve your goals?
Analyse and discuss the answers received from your students such that you
nudge them towards realising their full potential.

Pointers that can help a person as they strive

to maximise their potential at work
Know Yourself. Write down 2–3 of your greatest strengths and weaknesses.

Excel at Critical Activities. Identify and list 3–4 activities that are essential
for you to succeed in your desired (or current) role.
 ACTIVITY 2 : SCULPTING

Material Required Duration

Material box (bangles, threads, 30 min
ribbons, rangoli, dupatta, feathers
etc), charts & colour pens

Activity Objective
‘Sculpting’ as the name suggests, facilitates the participants in
creating a visual representation of their ‘self’ to figure out their basic
strengths and weakness and think about how they may capitalize
on these.

Process
1. Ask the participants to push back their chairs to make a large
circle within the room.
2. Ask them to select any area within the training room to do their

MODULE I: SELF ANALYSIS AND SELF REFLECTION

part in this activity.
3. Place the box with easily available materials such as bangles,
feathers, rangoli, dupattas etc in the centre of the circle.
4. The students are supposed to use the available material to
create and image for their "self". They can use the material to
depict concepts and ideas that they can explain to the class at
the stage of discussion.
5. Bring the group back to semi-circle for the discussion.
6. Now ask the participants about what their "sculpted" self-
image depicts and what does this representation tell them
about themselves.

Facilitator’s Note
Ask the students:
Æ How was your experience in doing this activity? How do you feel after
PAGE 29

doing this activity?

Æ Who were the first people you shared your concept of "self" with (family,
school, community etc.)? How was that experience?
Try to reach as many people in the class as you can.
 SELF CONCEPT
PAGE 30
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Explain: We are not born with a self-concept. Instead, we develop our

self-concept based on the feedback we receive from other’s comments,
judgments, the way we are treated and other external sources such as family,
school, religion, media etc.
The ‘Self’ is the totality of one’s thoughts and feelings and how an individual
explains themselves and the external world (cited in Cast & Burke, 2002). Our
idea of self is constantly influenced by our interaction with our subjective
world. Depending on our experience with the outside world, we may create
a positive or a negative self-concept. When we receive positive feedback
from our environment, we are likely to have a positive self-concept. Whereas,
when people respond negatively to our behaviour, and we lack confidence,
we tend to develop a negative self-concept. Most people have a combination
of a negative and a positive self-concepts. For example, an individual may
perceive himself as an incompetent father but a loving husband.
Examples of positive self-concept: An individual thinks of himself/herself
as an important part of the community or perceives himself/herself as hard
working.
Examples of negative self-concept: An individual perceives himself/herself
as unimportant to family or as an incompetent person. (Leary & Tangney, 2012).
Individuals with positive self-concept tend to be more happy, balanced,
have a better sense of wellbeing, and are better adjusted to their environ-
ment than those with a negative self-concept. (A. Bracken, 2009).
Since, individuals with a positive self-concept manage their environment in a
better way, this component has been seen as having a positive influence on
entrepreneural activity. (Negara & Selatan, 2019)
 ACTIVITY 3 : SWOT ANALYSIS

Material Required Duration

SWOT Analysis 30 min
outcome Matrix Chart

Activity Objective
To understand the common objective of this journey – to build an
entrepreneurial mindset and skills.

Process
Tell the students to assess their strength, weakness opportunities
and threats in the outcome matrix.

HELPFUL HARMFUL

MODULE I: SELF ANALYSIS AND SELF REFLECTION

STRENGTHS WEAKNESSES
1) What are your 1) What are your
strengths? weaknesses?
INTERNAL

2) What do you do better 2) What do your competitors

than others? do better than you?
3) What unique capabilities 3) What can you inprove
and resources do you given the current
possess? Situation?
4) What do others percieve 4) What do others percieve
as your strengths? as your weaknesses?

OPPORTUNITIES THREATS
1) What trends or 1) What trends or conditions
EXTERNAL

conditions may may negatively impact you?

positively impact you? 2) What are your competitors
PAGE 31

2) What opportunities are doing that may impact you?

available to your 3) Do you have sold financial
support?
4) What impact do you
weaknesses have on the
threats to you?
 Facilitator’s Note
PAGE 32

The SWOT analysis is used to (a) match one’s strengths to the opportunities
available and convert one’s weaknesses or threats into strengths or
opportunities or at the least make them more manageable. You can discuss
the the following questions with your students
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Strengths:
1. What advantages do you have (education, skills, networks, etc.)?
2. What resources do you have?
3. What values do you have that may help you reach your goals?

Weaknesses:
1. What tasks do you avoid doing because of a lack of confidence?
2. What disadvantages do you have?
3. What are your negative habits or traits?
4. In what areas do you need more training or education?

Opportunities:
1. How can you turn your strengths into opportunities?
2. How can you turn your weaknesses into opportunities?

Threats:
1. What obstacles do you face?
2. Could any of your weaknesses prevent you from succeeding?
3. Do any of your strengths hold you back?

Some Questions about SWOT and their possible answers:

1. What does SWOT stand for and why is it important?
Ans: SWOT stands for Strengths, Weaknesses, Opportunities and
Threats. It is a way of summarizing the current state of a company and
help devise a plan for the future, employing its existing strengths,
redressing its weaknesses, finding ways to exploit opportunities
available and finding appropriate defences against threats.
2. What are examples of opportunities?
Ans: Opportunities refer to favorable external factors that could give an
organization a competitive advantage. For example, if a country cuts
tariffs, a car manufacturer can export her/his cars into a new market,
increasing their sales and market share.
3. What are threats in SWOT?
Ans: In business analysis, Threats are external factors that can cause
damage to your organization, venture, or product, affecting your
production, sales, revenue and/or market share. Threats could come in
the form of market competition, supply shortages that affect production,
state transport strikes, government policies and so on. Threats are
negative, and external.

Conclusion
SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities
and Threats. SWOT analysis helps one identify how a company can take
advantage of opportunities in the market and stay strong against market
threats using its strengths on one hand. On the other it points to weaknesses
that may lead to loss, giving a person a list of areas and attributes to work
upon to build their defences.
SWOT helps us identify which areas of our business require our focus. It is
a fantastic process for testing our ideas right at the beginning. It will also
come in handy as we move forward in various processes of our business, be
it in making production plans or how to approach buyers.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

PAGE 33
 Session 4
PAGE 34

Access to Equity & Inclusivity

MODULE I: SELF ANALYSIS AND SELF REFLECTION

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Game, group Handouts, 60 minutes

discussion

Aim of the Session

Understanding of social inequalities based on one’s position in the
social hierarchy. Understanding that Access to Equity ensure that
everyone in society has an equal opportunity to grow, contribute,
and develop, regardless of their social position.

Session Objective
Participants will be able to identify their strengths and challenges,
both personal as well as those arising out of external circumstances.
Æ To understand the power and privileges that come with certain positions
in the social hierarchy
Æ To reflect on one’s own social position

Expected Outcomes
Æ That participants understand social barriers and privileges
Æ Building Empathy - Equity seeks to ensure fair treatment, equality of
opportunity, and fairness in access to information and resources for all.
Æ That participants understand that power is the ability to have control
and influence over others.
Æ That participants realize their own position in their social hierarchy and
its intersections within it to identify the obstacles as well as the benefits
that may arrive due to this position.

Understanding Access to Equity & Inclusivity

This section introduces the participants
to interpersonal strengths and areas
of improvement to enhance self-

MODULE I: SELF ANALYSIS AND SELF REFLECTION

awareness. It highlights the relevance
of identifying internal and external
barriers and resources impacting the
participants’ entrepreneurial activities.
● These activities will help participants
identify resources and challenges
around them. It has been observed that
different entrepreneurs experience
different sets of barriers based on their
position in the social hierarchy.
Æ Participants are encouraged to develop self-awareness and a better
understanding of equity since these are essential parts of an individual’s
growth and development. Being self-aware would mean that you
recognize your strengths, weaknesses, abilities, motivations, goals, and
aspirations.
Æ Every individual is unique and identifying one’s uniqueness is essential
for personal growth and development.
PAGE 35

Æ Self-awareness with the understanding of Equity is an important

component for becoming a successful entrepreneur
Æ ●Identifying one’s inner strengths and challenges acts as a catalyst in
using this knowledge towards overall growth.
 Why the session is important for EDP
PAGE 36

The session nudges the participates to develop a greater understanding

of their social identity and develop values that promote fair and equitable
access to services in areas essential for achieving and maintaining social,
cultural, and economic well-being. Equity implies distribution of economic,
MODULE I: SELF ANALYSIS AND SELF REFLECTION

social, and political resources in ways that are not restricted by age, gender,
race, ethnicity, ability, or income.
The route to achieving universal access to equity starts with treating
everyone equally. It is achieved by treating everyone justly according to
their circumstances. This session is to stress that as entrepreneurs, the
participants have a choice to use their agility and flexibility to bring about
positive change in society as a whole.

ACTIVITY 1 : POWER WALK

Material Required Duration

Handout 30 min

Activity Objective
This a very powerful exercise to understand and reflect upon one’s
position in society
It focusses on the powers and privileges that come with this position.

Process
1. This activity requires that participants stand in a straight line rep-
resenting that all human beings are born equal.
2. Before the activity starts, each participant will receive a slip that
has a social role written on it. They must read this and make sure
they do not disclose their characters to other participants in class.
3. Ask the participants to visualize themselves in the role given in
the slip for the duration of this activity. Ask them to think of their
character’s background, what they do, what their families might
be like, etc.
4. Read out the statements from your handout and ask the
participants to take a step forward if they think that their character
 will say YES to the statement. They should take a step backward if their
character will say NO to the statement and remain at their positions if
they cannot decide.
5. After all the statements have been read out, give the participants some
time to reflect about their positioning in society.
6. At the end of the activity, the participants will be asked to run towards
a goal point.
7. This goal represents Power. They are to occupy as much space as they
can once they reach the goal point.
8. Gather the participants back to the room for discussion

Handout 1
LIST OF CHARACTERS
Æ A woman who lost her husband and has a 7-year-old child, lives with
her in-laws and is financially dependent on them.
Æ A brahmin man who is working in the temple as a pujari and who owns
a land in the exteriors of the city.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

PAGE 37

Æ A dalit housewife who works as a sweeper in the nearby school. She

has 4 children, and her husband is a daily wage worker.
Æ A 19-year-old boy bullied because of his skin colour. He is a college
dropout and helps his parents in farming.
Æ A 40-year-old man who owns a shop in the village and has a disability.
 Æ Unemployed youth who is a school dropout. His father is a businessman
in the textile industry.
Grandmother who is taking care of her orphaned grandchildren.
PAGE 38

Æ
Æ Farmer from lower caste with debt.
Æ A single mother who is 32-year-old with 3 children to take care of. She
is homeless and sits near the temple for begging.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ A 40-year-old woman who was divorced by her abusive husband.

Æ A 45-year-old widower taking care of a teenage daughter living with
his parents.
Æ A farmer who must pay off his loans. He has a 12-year-old son who
helps him in farming.

Handout 2
LIST OF STATEMENTS

Tell the participants, “Step forward if your character can say yes to the
following sentences. Take a step back if the answer is no and remain in your
position if you cannot decide.”1. I can walk around alone at night without
being scared.
1. I can visit the PHC without anyone’s permission
2. I can go to the market by myself and buy myself a piece of cloth.
3. I have influence over the decisions made at home.
4. I have influence over the decisions made in the village.
5. I have financial resources to start/maintain my business.
6. I can take a loan from the bank.
7. The leaders in my village listen to my opinions.
8. I decide how the household money is spent.
9. I can study wherever I want to.
10. I can have 3 meals in a day.
11. I did not face any difficulties in pursuing what I want to.
12. While growing up, I had 50 books to read.
13. My family accepts me as I am.

Facilitators’ Note

Arrange the activity room in a way that every participant has space to move.
If there are more participants, the activity can be conducted outdoors.
 Discussion Points
Ask, “Some of you are standing in the front and some are at the back. Can
you tell me how you feel about your positioning? “The participants must
answer your question while reflecting upon how their characters have felt
throughout the activity.
Make sure that everyone gets an opportunity to speak.
Now ask, “At the beginning of this activity everyone started from the same
line, but at the end some people are positioned differently. Why do you think
there is a difference?”
Draw out and discuss the factors that have influenced their positioning.
For example, being a single mother, financial instability, political influence,
caste etc. Identify people in powerful positions in your village/city/country.
(Example, Sarpanch, village leaders, village officials). The purpose of this
question is to help participants reflect upon the fact that individuals, based
on their social position and role enjoy a certain status in society and that this
often becomes the deciding factor in their accessibility to resources.
Finally ask, “How can we bring the people at the back to the front?”

MODULE I: SELF ANALYSIS AND SELF REFLECTION

PAGE 39
 Session 5
PAGE 40

Understanding
Entrepreneurial Journey
MODULE I: SELF ANALYSIS AND SELF REFLECTION

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Game, group Handouts, 60 minutes

discussion, Video

Aim of the Session

Understanding that being an entrepreneur can be challenging but
keeping motivated is the key to success.
 Session Objective
To motivate the class through stories of struggle of other entrepreneurs
that participants can relate to and Understand the Journey of an
Entrepreneur equipped with depth of knowledge, and courage.

Expected Outcomes
1. That participants understand the journey of an entrepreneur and relate
to some of the struggles being mentioned.
2. That they identify and assess their own strengths which will help them
in their entrepreneurial journeys. That they also learn to anticipate
challenges and access milestones.
3. That they develop courage and are able to face the challenges that are
part and parcel to becoming an entrepreneur.
4. That they understand the value of keeping their approach realistic
and are able to tap into the positive lessons from the stories of local
entrepreneurs around them.
5. That they feel encouraged to dream and hope beyond their social
position and boundaries.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Why the session is important for EDP?

Æ At the end of the session, participants will be able to identify the various
opportunities and possibilities that exist around them. They will be able
to link these with essential support systems available. These will help
them on their way to starting a small business.
Æ Keeping motivation levels high is essential to succeed in the
entrepreneurial journey. Becoming an entrepreneur comes with a
lot of challenges and one may need to dig into internal and external
resources to keep oneself motivated along the way.
Æ Each entrepreneur has a different journey to take. A case story will
demonstrate the positives and the areas that need improvement in the
journey of an entrepreneur. Learning from this example, participants
will identify and assess their own strengths and challenges which in
turn will help them in their own entrepreneurial journey.
PAGE 41
 ACTIVITY 1 : INSPIRING STORY
PAGE 42

Material Required
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Handout

Handout 1
CASE STORIES - KALPANA SAROJ
Born in a Dalit family, Kalpana got married at the age of 12. She and her
husband along with his family lived in the slums of Mumbai.
Her husband and his family physically abused her. She informed her father
about the abuse, who encouraged her to leave her husband and shift back
with her parents.
The path ahead was not easy for Kalpana. Due to the constant labelling and
ostracizing by the villagers, she even attempted suicide.
At the age of 16, she shifted back to Mumbai and started living with her
uncle. Here she started working in a garment factory to support her family.
She took government loans and started a tailoring business and gradually
opened a furniture shop. Success took a long and difficult path but it came
as she remained motivated and gave her very best. Kalpana Saroj was
awarded Padma Shri for Trade and Industry in 2013.

₹2 to ₹2000 Crore | Rags To Riches | Kalpana Saroj - Josh Talks Hindi

Video: https://www.youtube.com/watch?v=r89--lqM3Dc
 Handout 2
WASUDEV: UPCYCLING CLOTHING FOR RURAL DEVELOPMENT
When Wasudev was a teenager, he noticed his village in Vidarbha,
Maharashtra struggling with rising unemployment and consumer waste. His
family too struggled for economic security; some years his parents were
unable to afford his school supplies. However, Wasudev noticed this reality
was often worse for young girls in his community, frequently being forced
to drop out of school when their families could no longer afford to pay their
school fees.
Later that year, Wasudev participated in a high school exchange program
that led him to the United States. After spending time without his family
on the other side of the world, he discovered a newfound confidence and
embraced his independence.
This confidence encouraged him to more thoughtfully play a role in his
community, from mentoring younger kids to supporting his mother’s work
in economic mobility for women living in rural communities like his own.
Inspired by his mother, he discovered a shared passion for providing others
the confidence and skills to be self-reliant and independent.
Still frustrated by the waste in his community, Wasudev had an idea. He
brought together his mother and a close friend in the local garment industry
to brainstorm how they could tackle not only unemployment, but also

MODULE I: SELF ANALYSIS AND SELF REFLECTION

women’s rights and environmental protection.

PAGE 43

Story from: https://www.ashoka.org/en-in/story/wasudev-upcycling-clothing-rural-

development | Video: Story from: https://www.ashoka.org/en-in/story/wasudev-
upcycling-clothing-rural-development
PAGE 44
MODULE I: SELF ANALYSIS AND SELF REFLECTION

At 19, Wasudev founded Silaigram, a social impact startup aiming to provide

sustainable livelihoods in rural parts of India. Today, Silaigram has upcycled
over a thousand kilos of textile waste taken from nearby garment factories,
rerouting the waste from where it would have ended up: the ocean or a
landfill.
Instead, the team invites women in rural communities to earn independent
livelihoods, many of whom are often excluded from formal economic
opportunities. Exploring their own artisan craft and creativity, the design
team, now made up of a few dozen women, transforms the upcycled cloth
into jholas, kurtis, and other clothing and accessories. The sustainable
products are then sold online.
Wasudev recently stepped up to bring a youth voice in his local government,
which has become especially important during the pandemic. He is serving
on his Mayor’s response taskforce, building a tech platform and verified
communication channels to bring together changemakers across social,
business, media, and government sectors to work collaboratively on relief
efforts.
As the only young person on the team, Wasudev is redefining the role of
young people in local government. Back in his village, the women who are
part of the Silaigram team have dedicated their time to producing cloth
masks, which are later donated to first responders and essential workers in
their community.
 Facilitators’ Note

Discuss with Participate about the Case Stories :

Æ What do you feel after hearing to these stories? Do they motivate you?
Æ Can you form a list of challenges you think these entrepreneurs have
faced along their journeys?
Æ Can you list the best qualities that these entrepreneurs have
demonstrated to keep moving towards success?•
Æ Are you able to relate to these stories? Do you see any similarity
between the stories of these entrepreneurs and your set of challenges
and support systems?

(The session would include a Live interaction by a Local Entrepreneur,

bringing out factors that have motivated them to overcome their challenges
towards success.)

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PAGE 45
MODULE I: SELF ANALYSIS AND SELF REFLECTION PAGE 46

NOTES
Module 2
Introduction to
Entrepreneurship
MODULE 2 SESSIONS 2 hours 50 minutes Pg. 47

2.1 Entrepreneurship: Meaning and Types 1 hour Pg. 48

2.2 Business Opportunity Identification 1 hour 50 minutes Pg. 55

 Session 1
PAGE 48

Entrepreneurship:
Meaning and Types
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Classroom
NA 1 hour
session

Aim of the Session

The aim of the activity is that students understand the mind set and
the processes involved in concepts related to entrepreneurship.

Session Objective
Æ To understand the meaning of Entrepreneurship
Æ To understand various types of business.
Æ To identify the difference between Self Employment and
Entrepreneurship.
Æ Participants will learn about processes that help in making an
enterprise successful.

Expected Outcomes
Æ That participants understand the concepts involved in entrepreneurship.
Æ That participants are equipped with information that is suitable to their
form of business
Æ That participants gain an understanding of the various types of
businesses that run in the market

What is Entrepreneurship?
Entrepreneurship can be described as the "capacity and willingness to
develop, organize and manage an idea or an invention or a discovery into a
business venture along with any of its risks to make a profit”.
For example: If we were to look at patternmaking as a skill or vocation, every

MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

potter is a businessman who makes earthen pots of different shapes and
sizes and sells them at the local market for a price. But the same potter
would be an entrepreneur if she or he is able to add some innovative ideas
to the pots etc. they are making. They may increase the utility of their pots
by adding a tap, they may increase the aesthetic value of their pots by
decorating them with traditional or contemporary art forms, or give them
different shapes and sizes, they may expand their inventory to include
flower vases, terracotta cooking vessels etc. The idea here is to constantly
innovate and add new items to the list of offerings to keep customer interest
intact while catering to different kinds of customer segments.
Entrepreneurship is the overall process of developing, launching, and running
a business. There are many different types of entrepreneurships. People
have varying aspirations and visions for the kind of businesses they want to
create. Everyone operates their business based on their own personality,
skills, and characteristics. Some people think that with hard work they can
find success, while others may use capital to help them get there. For some
entrepreneurs, profits are less important than providing a social good.
Though every type of entrepreneur experiences similar challenges, they
PAGE 49

may choose to address them differently. Each type of entrepreneur sees

challenges in their unique way and finds their own unique way (resources,
man power, capital, innovation, etc) to overcome them.
 Who is an entrepreneur?
PAGE 50

An entrepreneur is someone who develops a business model, acquires the

necessary physical and human capital to start a new venture, operationalizes
it, and is responsible for its success or failure. The emphasis of the phrase
“responsible for success or failure” stays with the entrepreneur. He either
MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

invests his or her own resources or raises capital from external sources,
knowingly taking the risk of failure and/or reaping the rewards of success,
as the case may be. The entrepreneur is thus, not merely the creator of a
new enterprise but the primary the risk taker and the chief innovator in her/
his business.

Types of Entrepreneurship (CBSE Book)

Sole Proprietorship
A sole proprietorship is one of
the easiest fo¬rms of business
to start. It requires no registration
or filing of documents. If a
single person starts a business
and takes no further steps
towards formalising it, it is a sole
proprietorship. All income or
losses are taxed to the owner as
their personal income. This flow-
through taxation is a significant
benefit for many owners.
On the flip side, a sole
proprietorship provides no
liability protection for the owner.
The owner is personally responsible for all liabilities and places his or her
personal assets at risk.
A sole proprietorship must meet any licensing requirements associated with
their type of business. Further, if a sole proprietorship wishes to operate
under a fictitious name, also called a doing business as (DBA) or assumed
name, the owner must complete any filing required by her/ his jurisdiction.

Partnership
A partnership is a business owned by two or more people that and requires
no filing of documents. Each partner participates equally in the operations
unless a formal partnership agreement says otherwise. The partners may
also agree in writing, to an unequal share of the profits or losses from the
partnership if this is the case.
Like a sole proprietorship, partners report
their share of losses or profits in their
personal income taxes and partnerships,
like sole proprietorships, do not provide
any protection for the partners involved.
Each partner is personally responsible for
all liabilities, placing the partners' personal
assets at risk.
In addition to complying with appropriate
licensing requirements, a partnership
operating under a fictitious name must
filed to establish a DBA or assumed name
with the appropriate jurisdiction.

Corporation
Unlike a sole proprietorship or partnership, forming a corporation requires
filing articles of incorporation with the state where the corporation will
conduct business. A corporation is a legal entity that is separate from its
owners, who are called shareholders. The shareholders do not necessarily
operate the business. Instead, they elect a board of directors who then
elects the corporation's officers to operate the business. Depending on the
corporation, shareholders may also serve as officers.
As a separate legal entity, corporations pay taxes on profits. After taxes, profits

MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

are distributed as dividends to shareholders who then pay personal income
tax on the dividends. Because they are separate legal entities, corporations
provide liability protection. The personal assets of shareholders are not
subject to the liabilities of the corporation.

If a corporation meets
Internal Revenue Service
requirements, it may select
alternative tax treatment.
“S corporation” status
allows a corporation to
pass profits or losses
directly to shareholders,
avoiding taxation at
the corporate level. S
corporations, however,
provide shareholders with
the same limited liability
PAGE 51

status as of corporations.
 Difference between Self Employment
and Entrepreneurship
PAGE 52

Self-employed Entrepreneur
Æ Self-employed individuals Æ Entrepreneurs, on the other
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are people who render hand, gather resources and

contract-based services to a organize them to establish a
variety of clients. full-fledged business.
Æ A self-employed person Æ Entrepreneurs is focused on
is focused on finding creating a business, which
opportunities for work, for carries their own identity.
her or himself. Æ The emphasis is on creating
Æ The emphasis is on opportunity even though
maintaining a secure income there may be no actual work
and on remain working. In and no income.
general, a self-employed Æ The entrepreneur hopes
person is unable to tolerant for growth and expansion,
great financial risk and is tolerant of great risk, and
deals within her/his known ventures into the unknown.
environment.

Field of business

A ‘Field of business’ refers to an industrial category, such as farming, fishing,

food processing, garments, construction, furniture, beauty salon, stationery,
etc. One’s talent, family background, experience, hobbies, or interests often
inspire one to develop interest in a certain field of business.
Type of business: Based on the product/service offering, businesses are
classified into the four types. One chooses the type of business they would
do based on personal characteristics and available networks.
1. Manufacturing – Manufacturing includes businesses that use
raw materials, such as leather, waste material, wood, cloth, or metal
and make new or different products out of these materials. Some
examples of manufacturing businesses are bhujia makers, furniture
makers, vermicompost manufacturers, brick kiln manufacturers, paper
producers and farm equipment manufacturers. If you know how to
produce a good, to make something that is in demand and valuable to
customers, you may want to go into manufacturing.
2. Service – Service providers are people whose businesses sell a
particular service, such as micro-credit, autorickshaw, beauty salon,
construction, repairs, cleaning, painting, nursing, private tuition, etc.
If you enjoy working with people and satisfying their specific needs,
providing services may be your forte.
3. Wholesale – Wholesalers are businesses that buy large quantities of
certain goods from manufacturers and resell them to retail outlets, who
then resell them to individual consumers. If you are familiar with companies
that make and sell their goods in bulk and you are good at establishing
relationships with retailers, you may want to become a wholesaler.
4. Retail – Retailers purchase ready-made goods from wholesalers or suppliers
for resale at a profit. Some examples of retail businesses are grocery stores,
appliance stores, clothing stores, stationery shops, computer, and mobile
phone shops, etc. If you like meeting different people and you have access
to a good location to open a shop, retailing may be a good option for you.

Concepts involved in Entrepreneurship

An entrepreneur must bear the risk of a business, be innovative, have great

managerial skills and be result oriented in her/his endeavours.
All questions regarding types of companies, must be clarified within the session
to avoid confusion at a later stage.

Risk bearing Innovative Managerial Skill Result Oriented

The This could mean Entrepreneurship is Results are

entrepreneur anything from the ability to manage the primary
must bear adaptation of various multiple roles like giving benchmark,

MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

various types innovations in industries, directions, conducting which measure
of risks for to new production inspections for quality if the goals and
establishing the systems or techniques, assessment, creating the plans of the
new enterprise new products, new controlled environments business have
and operating it. markets, new marketing for optimum production, been met or not.
methods, new qualities etc.
of raw materials, new
packaging, or a new
mixture of methods of
production etc.

Facilitators’ Note
Clarify any confusion the class might have regarding Self-employed Vs
Entrepreneurship. Also, make sure all 4 concepts involved in entrepreneurship
have been discussed extensively and ask the class multiple questions to ensure
they know these by heart.

Conclusion
PAGE 53

This session should help the students understand about different types of
entrepreneurships, helping them choose the kind of business they might want
to set up.
 Session 2
PAGE 54

Business Opportunity Identification

MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

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Classroom Handouts,
blindfold 1 hour 50 mins
activity, quiz

Aim of the Session

The session will equip students in understanding the importance of
identifying opportunities that would further help in the generation
of ideas.

Session Objective
Æ Participants will be able to identify business opportunities from
within their surroundings
Æ Participants will be given practical exposure for turning the
opportunities identified into income generating ideas.
 Expected Outcomes
Æ That participants learn how to identify opportunities
Æ That participants build on their confidence and discover their
’entrepreneurial knack’

What is Business Opportunity Identification?

( Aleap)
The term opportunity implies a good chance or a favourable situation
to do something offered by circumstances. In the same vein, a business
opportunity means ‘a good or favourable change made available to run a
specific business in a given environment at a given point of time’. The term
‘opportunity’ also covers a product or a project. Since the identification of
an opportunity or a product or project here is identical, the three terms are
used as synonyms while defining business opportunity.

Why is it important?

MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

Every business comes out of an idea. Businesses are started by men and
women who see that people want to buy a particular product or service.
A good business idea is essential, or even a prerequisite, for a successful
business venture. A business idea is the response of a person or persons,
or an organization to solving an identified problem or to meeting perceived
needs in the environment (markets, community, etc). Finding a good idea
is the first step in transforming the entrepreneur’s desire and creativity
into a business opportunity. However, good business ideas do not usually
just occur to an entrepreneur. Rather, they are the result of hard work and
effort put into identifying or generating and evaluating opportunities by the
entrepreneur.
PAGE 55
 ACTIVITY 1 : MY RESOURCE (BIZ SAKHI)
PAGE 56

Material Required
MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

Available Resources

Process
1. Asks the participants to stand in a circle.
2. Now, divide them into two groups. Ask them to choose from
the numbers 1 or 2 while going in a circle.
3. All the people who chose the number 1 are in Team A and all
the people who chose the number 2 are in Team B.

4. Now, ask each team to create a long line, as long as they can,
using whatever resources they have with them. Do not provide
them with any additional material from your side.
5. The idea is to help them identify their own resources from
their vicinity. The team with the longest line will be the winner.
6. Inform the participants that they will be given 5 minutes to
complete this activity.
7. Once the activity is over, announce the winner depending on
the length of the line.
8. Get the participants back to their chairs and lead the discussion.
Discussion Points
T How do you feel after completing this task?
T How did you choose your resources?
T How was your experience of completing the task?
T Were there any ‘Aha!’ moments in your team?
T What did you learn through this exercise?

Facilitators’ Note

Re-iterate the following point:

Every individual possesses the ability to find their own ways to deal with
their problems.
For example, to complete this task, some of you used your dupattas while
some of you used your footwear. Every one of the participants had their own
unique contribution to the team. The resources to complete the task were
found from within and around us.
All the resources we need are within and around us. Collaborative and
inclusive participation, where every individual pools in their resources for

MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

a common outcome, thus making their personal resources available to all
in the group, is often crucial not only for the growth of the group or the
community but for the growth of that individual as well.

PAGE 57
 ACTIVITY 2 : 50 RS. ACTIVITY
PAGE 58

Material Required
Divide the class into groups of 5.
MODULE 2: INTRODUCTION TO ENTREPRENEURSHIP

Ask each group to use 50 rupees and come back with a profit
in the next class. In order to earn this profit, they can plan to
do something together as a group, like, selling biscuit packets
in an ITI, showcasing a talent and collecting money from the
audience, etc.

Conclusion
The students will learn to identify opportunities from local surroundings. As
they make a profit, however small it might be, the students will be enthused
with greater confidence and more curiosity towards learning more about
the skills and other concepts of entrepreneurship.
 Module 3
Key Entrepreneurial
Skills
MODULE 3 SESSIONS 9 hours Pg. 59

3.1 Innovation 1 hour Pg. 60

3.2 Empathy 1 hour Pg. 68

3.3 Risk Taking 1 hour Pg. 73

3.4 Problem Solving 1 hour Pg. 80

3.5 Negotiation 1 hour Pg. 84

3.6 Perseverance 1 hour Pg. 88

3.7 Communication 1 hour Pg. 92

3.8 Understanding Failure 1 hour Pg. 101

3.9 Financial Literacy 1 hour Pg. 108

 Session 1
PAGE 60

Innovation
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Classroom Hand-out, paper

1 hour
activity, quiz and pen

Aim of the Session

The aim of the activity is that students start observing situations to
find innovative ways to improve upon them by thinking of fresh and
out of the box ideas.

Session Objective
Æ To explain the concept of Innovation to the students
Æ To stress upon the fact that “You get paid in direct proportion
to the difficulty of problems you solve” through Innovation
 Æ Understand the concept of ‘critical thinking’ to solve problems
through innovative and sustainable business models
Æ To learning through practice. Students will solve a specific innovation
challenge and apply their knowledge into real world action that
creates value for others.

Learning Outcomes
Æ That participants are able to design innovative business model
for the local market
Æ That participants are able to learn processes that mitigate business risk
Æ That participants are able to analyse innovation in any existing
business model
Æ That participants are able to design innovative marketing strategy
Æ That participants are able to design innovative service
delivery models

Definition of Innovation

MODULE I: SELF ANALYSIS AND SELF REFLECTION

PROBLEM
RECOGNITION EXPLOITATION
SOLVING INNOVATION
OF A PROBLEM OF SOLUTION
(INVENTION)

“Anything that wont sell, I don’t want to invent.”

– Thomas Edison

Innovation is an essential driver for progress that benefits consumers, businesses,

and the economy as a whole. Innovation can lead to higher productivity, meaning
that the same input generates a greater output. As productivity rises, more goods
and services are produced creating a win-win situation for the producer and the
consumer given the right demand.
Do not think that innovation happens only in large enterprises and on a large scale.
In fact, innovation usually starts on a small scale. To reiterate, innovation implies
the implementation of idea for product or process for the very first time. This may
PAGE 61

include
Æ Adding value to something that already exists.
Æ Practical implementation of a new idea.
Æ A new set of marketing, technical and strategic skills.
 Æ Creation of a new product or service or improvement in an existing one
Æ A combination of various products and processes done in a new manner
to improve upon existing processes.
PAGE 62

Innovation can be defined simply as a "new idea, creative thoughts, and

new imaginations in form of a device or method". However, innovation also
includes the application of better solutions that meet new requirements,
MODULE I: SELF ANALYSIS AND SELF REFLECTION

silent needs, or existing market demands in a better manner.

The term "innovation" can be defined as something original and more
effective, something that "breaks into" the market or society. Remember
that the world “innovation” is related to, but not the same as, “invention”,
as innovation includes the practical implementation of an invention (i.e.
new/improved ability) to make a meaningful impact in the market, for
governments or society.

Micro organizations can innovate.

The innovation processes usually involve identifying customer needs,
macro and micro trends, developing competences, finding financial support
for new inventions and the ability to practically apply these inventions for
better solutions.

Micro enterprises can focus on service Innovation.

Innovative services are ones that did not exist before, or that have been
substantially redesigned to meet the customers’ needs more effectively.
Innovative service processes include new or improved production, delivery,
or distribution methods often involving the incorporation of new information
technologies. Process innovation may involve significant changes in the
roles of staff, strategic partners, and/or customers. The most typical forms
of service innovation include increased accessibility and changes in the
degree of self-service.
The three main components of service design are:
People: This component includes anyone who creates or uses the service,
as well as individuals who may be indirectly affected by the service. Examples
include:
Æ Employees
Æ Customers
Æ Fellow customers encountered throughout the service
Æ Partners

Component: This component refers to the physical or digital artifacts

(including products) that are needed to perform the service successfully.

Physical space: storefront, teller window, conference room. Digital

environment through which the services is delivered
Æ Webpages
Æ Blogs
Æ Social Media
Æ Objects and collateral
Æ Digital files
Æ Physical products

Processes: These are workflows,

MODULE I: SELF ANALYSIS AND SELF REFLECTION

procedures, or rituals performed by either the
employee or the user through the life cycle of a
service. Examples,
Æ Getting an issue resolved over support
Æ Interviewing a new employee
Æ Withdrawing money through an Aadhaar
based Payment system in CSP
Æ Withdrawing money through an ATM

Service based
innovation focusses
on flexing business
models and the
dynamics of the firm
to deliver services
which continuously
PAGE 63

adapt, create value

and achieve specific
service levels and
business results.
 Why Innovation is Important?
Innovation is: New stuff
PAGE 64

II. that adds value

III. can be monetized
IV. creates a competitive advantage
MODULE I: SELF ANALYSIS AND SELF REFLECTION

V. and is sustainable
until the advantage deteriorates.

It is important:
Æ In solving problems: Most ideas are actually derived from attempts to
solve existing problems. As such, when you encourage innovation, you
are opening doors for solutions to problems both within and outside
your company. If your business provides services, you might realize
that your customers do not have an avenue to share their opinions,
complaints, and compliments. The only avenue available could be the
physical office. So, to solve the problem, you could decide to operate a
virtual office where customers’ needs can be attended to within a short
time. The customers will be happy and as a result, your sales will rise.
Æ While adapting to change: This is especially evident in the
technological world where there are rapid changes in business
processes. Change is inevitable and innovation serves not only to
keep your business afloat, but also ensure that it remains relevant and
profitable. With the rise in mobile phones, traditional telephone had to
find ways to remain relevant. It is the same with any other business -
when you develop a culture of innovation, you ensure that you remain
relevant at all times.
Æ With the customers’ changing tastes and preferences: Today’s
customer has a far great variety of products and services available to
her/him and is more well informed of her/his choices than ever before.
A company must therefore keep itself abreast with evolving tastes and
also forge new ways of satisfying its customer.
Æ In helping organisations grow: Innovation helps a company grow
through use of innovative technology, marketing process and business
models. Innovation is one of most sustainable of avenues for the growth
of an organisation in a competitive world. It not only allows businesses
to grow from the ground-up but can also help in speeding up their
growth.
Æ In keeping organizations relevant
The world around us is constantly changing, and in order for business
to remain relevant and profitable it must build a culture of innovation
into its everyday processes.
 ACTIVITY 1 : 9 DOT ACTIVITY

Material Required
Paper, pen

Process
Give the following instructions to students:
Æ ●Consider the nine dots arranged in a set
of three rows. Draw these dots in your
notebook.
Æ Your challenge is to draw four straight
lines which go through the middle of all
of the dots without taking the pencil off
the paper.
Æ You can start from any dot and must
draw the lines one after the other without
taking your pencil off the page.
Æ Each line starts where the last line finishes.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Ask the participants:
Æ Was this difficult to do?
Æ What did you think?
Æ Were you able to think of multiple
solutions?
Æ Why could/could not you do this?

Solution: 2nd Image

Æ The answer to this problem requires to stretch the lines
beyond the the dots into the plane space.
Explain “If we keep thinking for solutions which we already
know, that will not be sufficient. We need to think outside the
box to be able to find out the solution. Since entrepreneurship
involves building something from scratch, it often involves a
lot of brainstorming and resourcefulness at every step. In such
PAGE 65

cases, out of the box thinking i.e. viewing the same situation
from a different and creative lens helps one successfully
mitigate such challenges.
 Share the story of Shruti Reddy

ANTHYESTI-FUNERAL SERVICE
PAGE 66

Death is grim Business, but Shruthi Reddy Sethi, a young 33 – year old,
enthusiastic software engineer from Kolkata made it as a ‘Funeral Service
Undertaker’ to make it easier for those who are left behind. Originally from
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Hyderabad where she completed her education, Shruthi moved to Kolkata

in 2015 to be with her husband, who had shifted there with his job.
Having personally seen the problems a family, making all the arrangements
for cremation and prayers while grieving for the departed, faces, Shruthi
had thought about the need for starting a funeral service that made it all
easier for the departed’s family. And then one day in October 2015, while
discussing the matter with friends who now work along with her, she decided
to venture on the journey to form Anthyesti Funeral Services.
Shruthi’s company is geared to efficiently and sensitively taking care of
every aspect relating to the processes and ceremonies following a death,
starting from embalming the mortal remains to the conclusion of all rituals.
Bookings for Anthyesti ‘s services can be made on the phone or online. The
company has six employees, receives around 35 orders every month, their
fees ranging from INR2,500 to INR1,00,000 per service.
Anthyesti is filling a much-felt gap in handling the business of death, a crucial
part of life - with sensitivity, empathy, professionalism, poise and dignity.
They are officially the first company to offer funeral services in Kolkata. Their
revenue for the year 2017-18 totalled up to Rs. 55 lakhs.
Shruthi’s vision is to make Anthyesti India‘s one stop destination for
transportation of human remains be it locally within the city, within India
or internationally. They also want to offer full-fledged event management
services for funeral planning in the future. The Ministry of Skill Development
and Entrepreneurship recognised and rewarded Anthyesti under the
‘logistics’ category in 2018.
Video Links - https://youtu.be/Eoolm2rylE8

Facilitators’ Note

Discuss:
Æ Have you heard of any such service being provided before?

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ What was the problem Shruthi was trying to resolve?
Æ Why do you think her service is unique?

Conclusion
We live in a competitive world where complexity & uncertainty drive our
lives. The only way to survive sometimes includes managing your business
with out of the box thinking, creativity & innovation. This is especially relevant
for micro enterprises.
Innovation must be driven through capturing & making the full use of a
firm’s collective expertise. In fact, innovation management is the fuel that
drives innovation, which might very well be the only competitive advantage
that a company may have for sustaining in an unpredictable business
environment. A focus on a firm’s collective expertise brings its stakeholders,
owners, partners, employees on level playing ground encouraging loyalty,
creativity and growth.
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 Session 2
PAGE 68

Empathy
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Classroom
activity & Group Paper and Pen 1 hour
discussion.

Aim of the Session

To focus on an individual’s empathic skills

Session Objective
Æ To teach specific behaviours that enable participants to behave
more empathically.
Æ To impart the importance and knowledge about empathic
listening techniques
Æ To overcome barriers in empathic listening.
 Expected Outcomes
Æ Participants learn to empathise with the feelings of others
Æ Participants understand that empathy creates better leaders

“Empathy is like a universal solvent. Any

problem immersed in empathy becomes soluble”
Understanding other people's emotions is a key skill in
the workplace. It can enable us to resolve conflicts,
to build more productive teams, and to improve
our relationships with co-workers, clients, and
customers.
Empathy basically means being able to under-
stand the needs of others.
In practice it implies that leaders be aware of the
feelings of team members and understand what
impacts team perception. Empathetic leaders may not agree
with how their team members see things, but in being empathetic they are
willing and able to appreciate what others feel or are going through.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Empathy has the capacity to transform individual lives for the better
while helping bring positive social changes within teams.

“If there is any one secret of success, it lies in the ability to get
the other persons point of view and see things from his angle as
well as your own”
– Henry Ford

Empathy allows people to build social connections with others. Research

has shown that having social connections is important for both physical and
psychological well-being. By understanding what people are thinking and
feeling, one is able to respond appropriately in social situations.
Empathy promotes Helping Behaviour’s: Not only are people more likely
to engage in helpful behaviours when they feel empathy for other people,
but other people are also more likely to help them when they experience
empathy.
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Steps to develop Empathy

Empathy is a skill that can be learned and strengthened. There are a few
things that one can do to acheive this:
 Step 1 : Imagine yourself in the other person's
Appreciate them as
shoes. See their world
human beings
Step 2 : Investigate underlying feelings.
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4 elements of Empathy
Step 3 : Identify with the person's experience.
Communicate
Step 4 : Verify the accuracy of what you're Understand feelings
understanding
hearing.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Step 5 : Offer support.

Importance of Empathy
Æ Empathy allows leaders to build and develop relationships with those
they lead.
Æ It helps them understand the root cause behind poor performance.
Æ Being empathetic allows leaders to help struggling employees improve
and excel.
Æ It builds trust and respect among team members.
Æ It facilitates discussions and creation of safe spaces for team members
to release stress and reduce tension.
Æ It creates an environment that encourages collaborative problem
solving.

ACTIVITY 1 : ROLE PLAY (BIZ SAKHI)

Material Required
Handouts

Process
This is an interesting activity which will help participants put
themselves in other people’s shoes. The characters in this activity
might be doing things that come in direct conflict with prevalent
social norms and the participants might thus find it challenging to
empathize with them.
1. The facilitator will select 4 volunteers for this activity.
2. Each of the volunteer will choose a chit from the box. The chits
will have 4 differen roles.
I. A widow who wants to remarry.
II. A husband who does not want his wife to work outside the
house.
 III. A neighbour who teases her friend for wanting to start a beauty
parlour.
IV. A woman who you had approached to support her in business, but
she never returned your call.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

3. The participants will assume the role of the characters as per their chit.
Encourage the participants to think from the point of view of these
characters, their frustrations, their challenges, and dreams. They must
use their imagination to create a scenario of life situations around their
character. This will help them understand what their character might be
going through and so that they are able to give appropriate reactions to
the questions posed.
They will then be introduced to the rest of the group.
4. The group will be asked to react (ask a question or comment) to a
character as per society’s perception. For example, a window who
wants to remarry might be called disloyal or selfish.
5. The volunteer playing the character will respond from their character’s
perception and may justify their actions and answer accordingly.
6. Give 5 minutes for each role.
7. Gather the participants back to the group for discussion after the
activity.
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Note
It is important for the facilitator to reiterate that this activity is only for the
purpose of understanding empathy. Make sure there are no personal
comments made during the activity.
 Facilitators’ Note
PAGE 72

Discuss:
Æ How did you feel?
Do you identify with the person you were enacting?
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ
Æ The audience will be asked, “Why did you ask/say the things you did? “
Æ How did it feel to assume someone else’s role? Was it difficult?
Æ Which role was easy/difficult to empathize with?

Empathy is the ability to put oneself in the position of others and perceive
the situation as they do. It involves the ability to develop an understanding
of motives, feelings, and behaviour of the other person without letting your
own perception, judgement, or bias interfere. However, empathy does not
mean that you have to agree with them.

Conclusion
Empathy is the ability to see things from another person's perspective and
sympathize with their emotions - it plays an important role in establishing
harmony within a team. A leader must develop empathy since dealing with
administrative situations requires that all relevant viewpoints are elicited,
and suitably accommodated.
 Session 3
Risk taking

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Classroom Handouts,
1 hour
activity 3 Rings

Aim of the Session

The aim of the activity is to make an entrepreneur running a business
perceive and identify possible risks before they occur and learn to
mitigate and manage them.
PAGE 73

Session Objective
Æ To help entrepreneurs develop a mindset where they can push
themselves to think big and keep on trying until they succeed.
 Æ To encourage an entrepreneur to develop the courage to take risks and try
new things rather than being comfortable in the usual.
To drive in the point, “there is always a possibility to re-invent yourself by
PAGE 74

Æ
taking a risk”.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Expected Outcomes
Æ That participants feel confident in trying something new.
Æ That participants understand that ‘risk taking’ for a business is in fact
positive and that one’s appetite for risk often determines how much profit
one may be able to earn.

Risk taking

Risk taking is one of the most distinctive features of entrepreneurial behaviour,

since creating new ventures is by definition a risky business. Risk Management
has three broad parts:
Æ Risk Prevention: An entrepreneur must try to take steps to avoid the
occurrence of threats. . If proper measures are taken to avoid damage it is
called as Preventing Risk or Risk Prevention.
Æ Risk Mitigation: All entrepreneurs face uncertainty and risk. Sometimes when
damage can not be avoided one must take steps to minimise its impact.
Æ Risk Transferring: An entrepreneur ensures that even if threat occurs the loss
is distributed or borne by someone else. For example, in large corporations
the losses get distributed amongst the shareholders who buy the shares of
the company.
 Why is it ‘risk taking’ important?
Taking a risk is directly proportional to making a profit. As a successful
entrepreneur, at some point time during your business you will feel the need
to take a risk. This might be in the form of raising capital to expand operations
or trying new methods to do something or introducing a new product in the
market, etc. Taking a risk is thus the way to create opportunity and direct
progress. When an entrepreneur takes certain risks, their competition is not
willing to take, they have the potential to become leaders in their field.

ACTIVITY 1 : STORY TELLING1

Material Required
Handouts

Process
Tell students to read this speech by Sundar Pichai who is the first India-
born CEO of Google. Sundar Pichai was born in Madurai, Tamil Nadu to
Laxshmi and Regunatha Pichai, a stenographer and an electrical engineer

MODULE I: SELF ANALYSIS AND SELF REFLECTION

respectively. He grew up in a tw o-room apartment in Chennai He
completed his schooling locally and earned his degree in Metallurgical
Engineering from Indian Institute of Technology, Kharagpur. He went
on to do his M.S. in Material Sciences and Engineering from Stanford
University, and an MBA from Wharton School in the University of
Pennsylvania.

Handout 1
TRANSCRIPT OF SUNDAR PICHAI’S SPEECH
‘You will have many-many opportunities to re-invent yourself, and so I
think it’s worthwhile taking risks in trying to do something you’re really
excited by.
If in first attempt you do not do it, you can try again, and things tend to
work out in the long run. In Silicon Valley, part of the reason so many
people start up a company, you know starting a company and even
PAGE 75

having failed, you can wear it like a badge of honor. I think it’s important,
culturally, risk is rewarded. I remember when I started working at Google,
if I went and people were discussing ideas, there are other people who
heard those ideas and tried to build on those ideas. They encourage
 you. So, its a culture of optimism and a culture of risk taking, and I think it
is really important. You know I would encourage all of you if at some point
in life you have to work in a place where you feel a bit insecure, then that’s
PAGE 76

essential because it means that you [are] working with people who are better
than you and always encourage you and push you. If you feel very secure in
your job that means you are doing something comfortable and not pushing
yourself. You know when I see entrepreneurs here, they are no different to
MODULE I: SELF ANALYSIS AND SELF REFLECTION

me than the kind of people, I meet in valley. Intrinsically I think India can do
same kind of things, and as internet becomes more mainstream, people
become more confident, you have large domestic market to tackle; that
will give you confidence to tackle not just the local market but the global
problems as well.
You know I think, at Google we always think about solving problems and how
that solution can one day apply to a billion people, so if we did something
will it work for a billion people? We wanted to work on problems which
people used in their everyday life. These are the questions we always ask,
even when we did simple things such as Google books, we thought what if
we scan all the books in the world and bring them online, so there was an
inherent assumption of scaling everything. It really shaped my thinking, so
think big. So to do something, or building a product well, building a product
is just one aspect of it, you want to be able to build it, scale it, take it to the
market, how do you market it, how do you sell it in certain cases, the end
to end work takes to make a product happen, it’s a very cross-functional
thing. So, we hire people from all kinds of background. There are language
majors, people who have done history, done business and commerce. I
am confident, in fact majority of people working in Google haven’t done
computer sciences at undergrad level. So, follow your dream and reach
where you want.

Video Link: https://www.youtube.com/watch?v=J2umO62CGQY

Now ask the class:
a) What does Pichai say about taking risk?
b) Why do you think it is important to have culture of optimism?
c) Why does Pichai feel it is a positive thing to feel insecure in a job?
d) Why is it important to think big?

Encourage the class to come up with their points of view and

conclude by explaining –
Æ Taking risks, gives us second chances, third chances and thus multiple
opportunities to re-invent ourselves.
Æ It is important to have a culture of optimism in an organisation as it
encourages people to take risks, come up with innovative solutions and
re-invent themselves in the process. It is good for both organisational
and personal growth.
Æ We should be aware that there are people in the workplace as also
around us, who can do better than us, may possess better skills and
abilities. We should never take our position in an in organization as
secure. Competition must encourage you to push yourself to realize
your highest potential.
Æ Thinking big can help solve problems for not a few but millions of
people in the country and around the world. An entrepreneur must
learn to scale up their thinking in order to scale up their business.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

ACTIVITY 2 : RING TOSS EXERCISE2

1. Draw a circle of approximately

6-inch radius using chalk
powder. From the centre of
the circle, draw 4 concentric 12
Me
circles every 3 meters as ter
s
shown below
3 Meters
2. Tell the rules of the game
to the participants: Each
s
6M

participant will be given three er

et
ete

rings. They have to throw the M

9
rs

ring such that it lands the ring

PAGE 77

within one of the circles. If

their ring lands within one of
the circles, they win rewards
(points). If the rings land
 outside, they get zero points. The rewards depend on how far they are
able to throw the ring. The distance and matching rewards are given
in the table below:
PAGE 78

Distance from the midpoint of the Reward for landing the ring in this
Rings
circle (in meter) circle (in points)
Ring 1 3 1
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Ring 2 6 5
Ring 3 9 10
Ring 4 12 20

Facilitators’ Note

You will need to have a space that is big enough to accommodate these
circles, if the activity room does not have this kind of space, you can conduct
this activity outdoors.

3. Invite participants one by one. Each participant gets one attempt.

Record their scores in the format below:

Name of the Participant Choice of Distance Rewards

The trick to get maximum points is not always to land the ring in the farthest
point but to access the risk based on your ability to land the rings correctly
and calculate your return before throwing the ring.

Facilitators’ Note

Conclude by drawing parallels with business situations: In businesses, like in

our game, if we take very little risk, we end up with very little return. Similarly,
if we take very high risk without proper assessment and calculation, we are
playing blind and might not succeed at all! It is important that we make
balanced decisions that based on knowledge, an assessment of our abilities,
and resources available to maximise our returns from this risk.
 Reading materials and references
ILO Start your Business Module. Available on the internet

https://www.ilo.org/empent/areas/start-and-improve-your-business/lang--en/index.htm

Facilitators’ Note

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Discuss:
Ask the participants who scored high or low how they think they ended up
with this result?
Winning participants tend to create the right balance between rewards
(returns) and distance (risk). If participants throw their ring to a point that is
very close, taking the safe choice, they get less points. e . However, if they
try to throw the rings too far, they may find it difficult to land the ring in the
circle and end up getting no rewards at all.

Conclusion
An entrepreneur must make informed choices and balance the risk they are
willing to take with the rewards they want.
PAGE 79

1 NIE
2 Biz Sakhi
 Session 4
PAGE 80

Problem Solving
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Outdoor Handouts, 1 Hour (Per

& Indoor Audio Visual activity)
Activities

Aim of the Session

This session aims to introduce students to the problem-solving
process using real-life experiences encouraging them to collaborate
and think of creative solutions for the same.

Session Objective
Æ To explain the need for developing problem solving skills
Æ To narrate the processes involved in problem solving.
Æ To discuss the importance of creativity in Entrepreneurship
 Expected Outcomes
That participants learn to evaluate a problem, understand the kind of
attention it requires and come up with creative solutions to fix it.

D ESI G N THI N K I N G P R O C ES S

1- E MPAT H IZE 3 -IDEAT E 5-T EST

2 -DEF IN E 4-PROTOTYPE 6-IMPL EMENT

MODULE I: SELF ANALYSIS AND SELF REFLECTION

U N D E RSTAN D EX PLO RE MATERIAL IZE

One of the distinguishing characteristics of an entrepreneur is her/his

capability to solve problems. An entrepreneur accepts the fact that problems
are part and parcel of pursuing any goal.
An entrepreneur is likely to face a variety of problems in the course of
establishing and managing their enterprise. Being able to identify problems
and come up with creative solutions is necessary for managing the
functioning of a business in a smooth manner, rather than remaining under
stress and tension as life keeps throwing obstacles along the path.
The steps involved in the problem-solving process include:
Æ Empathizing: This involves gaining an empathetic understanding of
the problem you’re trying to solve - this typically happens through user
research and people interaction.
Æ Defining: At this stage you and your team accumulate the information
you have gathered during the empathy stage. You analyse your
PAGE 81

observations and synthesize them to define the core of the problems

at hand.
Æ Ideating: The solid background of knowledge from the first two phases
means you can start ideating and “thinking outside the box”. This is to
say you must strive to look for alternative ways to view the problem.
 Æ Prototyping: This is an experimental phase, and the aim is to identify
the best possible solution for each of the problems identified.
Testing and implementation: These are the final phases of the
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Æ
model, but, in an iterative process such as design thinking, the results
generated are often used to redefine one or more further problems.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Why is it important
When in a problem, most of us tend to make decisions in a hurry. This often
leads to the creation of more problems rather than solutions. Developing
the problem-solving skill is integral in the running of a business, especially
while making decisions related to finance, legal, and human resource.
Being able to think critically about issues, is central to success both in life
and in business.

ACTIVITY 1 : IDENTIFICATION OF PROBLEMS1

Material Required
Chartpaper, sticky notes, pens, handouts

Process
1. Split the classroom into teams, give them a chart paper and sticky
notes
2. Ask them to go around the vicinity and find 5 problems. You and
your class may discuss where they should go, or what kind of
problems they should look for based on where you are and your
local circumstances.
3. The teams must then venture out, identify problems, then try to
jot down a possible list of creative solutions for these problems.
Encourage them to use the design thinking process.

Conclusion
Participants get an understanding of problems around them. They use the
design thinking process to come up with creative solutions.

1 Vruksh
 ACTIVITY 2 : TO FACE PROBLEMS WITH CREATIVITY

Material Required
Audio Visual

Bamboo Boys film

●Show students the Bamboo boys movie (Use the following YouTube link)
Video: https://www.youtube.com/watch?v=UCVaW4QM7oU

Source: Going to School Organization

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Ask
Æ Why did the boys decide to do this business? (Potential Responses:
“One of them had an aspiration to build a home for his family”, “Their
family circumstances pushed them to do this.”)
Æ What according to you made them successful? (Potential Responses:
“Both of them had the skills to construct buildings”, “Being friends they
gave each other the strength to face difficulties.”, “They got support
from the local organization and the engineer”, “They did not give up
and chased their dreams persistently”)
Æ Now ask, What did you learn from the movie?

Conclusion
Participants get an understanding of problems around them. They use the
steps of the problem-solving process to come up with creative solutions.
PAGE 83

“An entrepreneur looks at situation with a problem-solving lens, starting

with the identification of a problem, to decide on a business idea, to finding
solutions when faced with challenges, as well as failures.”
To succeed entrepreneur, need to know the importance of creative
problem solving.
 Session 5
Negotiation
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Lecture None 1 Hour

Aim of the Session

To regain the ‘seller’s advantage’ over today’s more sophisticated buyer
using the right negotiation techniques, the most important of which is
controlled dialogue.

Session Objective
Æ Define what is meant by negotiation and learn to apply that definition
to different contexts
Æ Identify factors that can determine the outcome of a negotiation
Æ Plan a strategy for successful negotiation
Æ Understand the principle of ‘win-win’ negotiations
 What is Negotiation?

Negotiations are a constant feature of everyday life. We negotiate all the

time, be it with our families, friends, or strangers in markets or workplaces,
- we negotiate with a range of people and organisations on an everyday

MODULE I: SELF ANALYSIS AND SELF REFLECTION

basis!
Negotiation takes place when two or more people, with differing views,
come together to attempt to reach an agreement on an issue. This may also
be called persuasive communication or bargaining.
“Negotiation is about getting the best possible deal in the
best possible way.”

Need for negotiation

No two people are exactly the same. Each and every individual thinks and
behaves differently in different situations and has different needs, wants,
beliefs and aims. It is this basic difference between people that gives rise to
disagreement and conflict from time-to-time.
Mutually co-existence be it at a personal level or in your career, demands
that interpersonal conflicts and disagreement is at least minimized if not
entirely resolved.
PAGE 85

Types of negotiation
Æ Distributive (win-lose)
Æ Integrative (win-win)
 What have you negotiated?
PAGE 86

Æ When did you hold a success negotiation and regarding what?

Æ What factors do you think helped in enabling your success?
MODULE I: SELF ANALYSIS AND SELF REFLECTION

While planning to negotiate

Æ Establish your objectives
Æ Establish the other party’s objectives
Æ Frame negotiations as a joint search for a solution
Æ Identify areas of agreement
Æ Trouble shoot disagreements: bargain & seek alternative solutions,
introduce trade offs
Æ Agree and close: summarise and ensure acceptance

How to influence others?

The three ‘Ps’ that help the process of negotiation are:
Æ Position (power)
Æ Perspective (empathy), and
Æ Problems (solutions)
 The Language of
Factors for success TIPS for Negotiations
Negotiation

Æ Legitimacy of your Æ Aim high to begin Make proposals with

case with – easier to lose open questions such
Æ Confidence with ground than gain as:
which you present Æ Give concessions Æ “What would
your point of view ‘reluctantly’ happen if we…?”
Æ Treating the other Æ Break down Æ “Suppose we were
party with courtesy complex deals to…”
and respect Æ Always get an Æ “What would be the
Æ Adapting to the agreement in result of?”
other party’s style so writing
Æ Dealing with stone-
that they do not look walls: “What would
at you as an outsider need to happen for
Æ Striking a rapport you to be willing
Æ Background to negotiate over
research this?”

Æ Incentives and Æ Always get

trade-offs agreement in
writing

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ Building on to the
bigger picture

Expected outcomes
Æ The participants should be able to define the meaning of “negotiation”
and apply it to different contexts
Æ They should be able to identify factors that may determine the outcome
of their negotiations
Æ They should be able to plan a strategy for successful negotiation
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 Session 6
PAGE 88

Perseverance
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Lecture None 1 Hour

Aim of the Session

Pushing the boundary for positive thinking. Encouraging participants to
develop an attitude that that never lets them quit!
 What is Perseverance?

Perseverance is the art of never giving up!

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Giving up is not an option in the race to success. There are no failures. Only
two things, either winning or learning.

The principle of perseverance

When you have a problem, one that is especially difficult and terribly
discouraging, there is one basic principle to apply and apply over and over
again. It is simply this:

Never Quit.

To give up is to invite complete defeat, and not merely in connection with

the matter at hand. Giving up spirals into a sense of failure, contributing to
developing a defeatist psychology. It then starts affecting everything else in
a person’s life.

What is not perseverance?

PAGE 89

Æ Escaping or avoiding problems

Æ Blaming yourself and/or others
Æ Blaming circumstances and avoiding difficult situations
 Fundamentals of perseverance
The basic principle is: it is always too soon to quit.
PAGE 90

How can one develop this “no quitting, undefeatable attitude”?

To start with, stop using negative words, for example the word NO, it
denotes a shutting of the door; it means failure, defeat, and delay. But spell
MODULE I: SELF ANALYSIS AND SELF REFLECTION

it backwards and take new hope, for backwards it spells ON. It gets you to
push on toward your goals.
People who fail usually do so not because they are unable to handle an
outward situation – it is the inner or mental conflict that defeats them.
Have you meet yourself? See your inner self.
You need to ask yourself these questions
Æ Do you meet your expectations frequently?
Æ Have you set high standards for yourself?
Æ Can you fight against the odds with your hard work?
Æ Does your mind give up before a task is given to you?
Æ Do you procrastinate?
Æ Do problems dampen your spirit or mindset?
Answering the above questions will give you true insights about your inner
self and belief system!
Remember

Every problem contains the seeds of its own solution.

Æ People assume that a problem is inherently bad, whereas on the

contrary, a problem may be, and usually is, inherently good.
Æ Problems constitute a sign in life, the more problems you have, the
stronger you become.
Æ When champions meet their strongest adversaries with courage they
became legends.
Æ Always remember that to every disadvantage there is a
corresponding advantage.

What to do when facing a problem or a challenge?

Æ Believe: First tell yourself, that you can overcome the problem.
Æ Visualize: Imagine the feeling of overcoming your problem. Sporting
champions often visualize what victory will feel like.
Æ Control your emotions: Learning to control your emotions is the
first step to solve a problem.
Æ Stay calm: A calm mind is critical! MS Dhoni is an exemplary example
of staying calm when the odds are against you. A sense of calmness is
what helps MS Dhoni control his actions and look at problems in a more
diligent manner. Calmness can help you conquer your situation.
Æ Put in your best foot forward: Staying calm helps in putting your
best efforts forward.
Æ Work hard: Don’t resist the work and/or the challenge.

What are you afraid of?

Æ List down the things you are afraid of?
Æ List down the things that have stopped your progress.
Æ Ask yourself how you can persevere despite the above.

How do we inculcate perseverance?

Æ By preserving and not giving up on difficult jobs or situations
Æ By having faith in your abilities and working on tasks that you do not
like
Æ By dedicating yourself to improve and get better with every task
Æ By learning and growing from your experiences

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Conclusion
Self-knowledge is the beginning of wisdom, and it is also the beginning of
a cure.

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 Session 7
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Communication
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Classroom activity, Audio- Video 1 hour

Interactive session, Aid, Cards
Lecture

Aim of the Session

This section introduces the participants to interpersonal strengths
and areas of improvement to enhance their self-awareness about
how they communicate. It highlights the relevance of identifying
internal and external barriers and resources that impact a
participants’ communication skills, thereby impacting their
entrepreneurial success.
 Session Objective
Æ To help participants develop an understanding of the process of
communication
Æ To help participants examine the advantages and disadvantages
of various methods of communication.
Æ To help participants identify the various barriers to
communication.
Æ To help participants use appropriate approaches for
communication in different scenarios.
Æ To help participants develop appropriate behaviours to improve
the quality of their inter-personal relationships.

Expected Outcomes
1. That participants learn to foster good working relationships
2. That participants learn to prevent or resolve problems arising due to
poor communication

Communication

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Communication is not a single act but a process involving various elements.

At its core ‘communication’ is the sending and receiving of messages.
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Successful living requires effective communication skills. As you go

through life the success of your interactions will depend largely on how
you communicate. This module will enable the aspirants to develop their
competences to help them communicate more effectively in real life
situations.
 Different people communicate differently. Examining communication in
life skills is important. You must focus on the process, the methods used,
on barriers, and on your listening skills as you begin to observe your day-
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to-day interactions with other learners be it through the use of technology,

speech, drama and/or gestures in your learning environment.

Why is communication important?

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Effective communication ensures that the sender of the message sends

their message in such a way that the receiver, not only gets the message
but also understands it and derives the same meaning from it, as intended
by the sender. Communication is one of the most important processes in
the management of an enterprise.

ACTIVITY 1 : PASSING THE MESSAGE

Material Required Duration

None 30 min

Activity Objective
The goal is to get the message relayed to the last person intact, and
without any changes.

Process
Ask the participants to form
a circle. The facilitator will
whisper a short, 2-3 sentence
tale into the ear of one of the
participants. She/he will then
whisper what they have heard
into the ear of the person next
to them, and so on. The last
person, seated beside the
first person will say what they
heard out loud. Inevitably, the
tale will differ greatly from
the original, and cause a few
laughs in your class!
 Facilitators’ Note

Discuss:
Æ Why did the tale change so much from the original?
Æ What does this teach you about communication? (Listen carefully, speak
clearly, and ask questions if you don’t understand)

After the activity ask the participants Why do we communicate? and note
down their answers:
You may expect to hear the following:

We communicate in order to:

Æ Express our feelings and thoughts
Æ Help others learn more about ourselves
Æ Learn more about others
Æ Share the world with others
Æ Learn about the world around us
Æ Relax from the rigors of life
Æ Persuade and influence others
Æ Test and resist the influence of other people on us

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ Have fun

After noting down these responses explain:

Communication is the ability to interact with others. We use it in the process
of expressing ourselves, as well as, forming and maintaining inter-personal
relationships. It involves listening, understanding and expressing our feelings.
Effective communication helps form desired relationships through verbal and
non-verbal messages. The quality of the communication often determines
the quality of a relationship.
The process of Communication is interactive. The understanding of the
message always depends on the context in which the ideas and feelings are
shared.

There are four main skills in the communication process:

1. Listening - an active process involving selecting, attending to, creating
meaning from, remembering, and responding to verbal and non-verbal
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messages.
2. Questioning - checking facts, gaining further information, and building
rapport to explore opinions or attitudes.
3. Clarifying - the process of simplifying, explaining, spelling out,
shedding light on, or making clear the message received.
 4. Responding – by giving an appropriate reaction to the message
received.
Communication can help you recognize and realize your potential. Hence
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great importance has been placed on the process and its use. Now move
to the next activity.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

ACTIVITY 2 : ARE YOU LISTENING?

Material Required Duration

Prepared cards
30 min

Activity Objective
To demonstrate the role of listening in communication.

Process
1. Ask the participants to form groups of three.
2. Ask each group to decide who will be the speaker, the listener,
and the observer.
3. Now gather all the listeners in one place away from everyone else
and give
T Each one a written instruction from the list below (make sure at
least one of the listeners gets the first instruction from the list.):
T Listen carefully and ask relevant questions at an appropriate
time
T Interrupt and prevent the speaker from finishing his/her
sentences
T Change the subject frequently
T Compliment the speaker frequently
T Put the speaker down
T Laugh when the speaker is serious
T Talk to someone else while the speaker is talking
T Look around the room and appear distracted while the
speaker is talking
4. Give advice you weren’t asked for Now, similarly gather the
speakers and instruct them to think of something they feel strongly
 about, or like to talk about, and to be prepared to speak on this topic for
3 minutes when they return to their groups.
5. Finally gather the observers and ask them to observe silently and note
all interactions between the listener and the speaker. Remind them
that they should remain silent.6.
6. At the end of the 3 minutes, ask the participants to reconvene in plenary.
7. Discuss their reactions to the exercise, what happened in each group

MODULE I: SELF ANALYSIS AND SELF REFLECTION

and how they felt. First ask the observers to explain what they saw,
then the speakers what they felt and finally the listener may reveal they
heard and consequently understood.

Facilitators’ Note

Discuss:
Æ Ask the speakers and the observers, “Did you feel that the listeners
were listening?”
Æ Ask all, “How does it make you feel when someone doesn’t listen to
what you are saying?”
The facilitator should write down all the responses on cards or flipcharts
for everyone to see.
Listening is a process that involves selecting, attending to, constructing
meaning from, and remembering verbal or non-verbal words and sounds
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in order to respond. Listening starts with you. To become an effective

listener, open your ears, shut your mouth, and open your heart. Listen to
what people are saying rather than simply hearing them, you will learn a lot
about yourself in the process.
 Effective listening skills require that you
Æ Maintain eye contact with the speaker
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Æ Provide non-verbal cues to encourage the speaker to talk

Æ Avoid outside distractions
Æ Listen from the heart
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ Practice ‘Mirror body language’

Æ Repeat what is said to you to clarify what you have understood

You may write it down later to help you remember all that you have heard
and inferred.

Effective Listening

Selecting Attending Understanding

Remembering Responding

Types of Business Communication

The four basic types of business communication are
1. Internal, Upward Communication:
This type of business communication is anything that comes from a
subordinate to a manager or an individual who is up the organizational
hierarchy. Leaders need information to flow upwards to have a true
pulse on the operations of the company. Most communication that flows
upward is based on systematic forms, reports, surveys, templates, and
other resources to help employees provide necessary and complete
information.
For example, a sales report might include the total number of pitches,
along with the numbers of actual sales that happened. It may also ask
for feedback, such as a summary of problems faced, or successes that
the management may choose to track.
2. Internal, Downward Communication:
This is any type of communication that comes from a superior to one
or more of their subordinates. This kind of communication might be
in the form of a letter, a memo, or a verbal directive. Leaders should
make sure they keep their communication professional and clear
with subordinates. For example, a memo regarding a new operations
procedure might involve safety requirements and new regulations.
There should be no room for misinterpreting what safety requirements
 may or may not include the language should concisely and explain
exactly what needs to happen.
3. Internal, Lateral Communication:
Lateral communication includes talking, messaging and emailing among
co-workers in an office. This might be cross-department communication
or just internal department dealings. An example of a scenario involving
cross-department communication is where the fulfilment manager has
a question about a special order and is requesting clarification from the
sales representative via an email or office messaging system. Those
in the same department might communicate to provide updates on
status reports or to coordinate schedules. Co-workers should always
be encouraged to communicate in a respectful and professional tone
when at work.
4. External Communication:
External communication is any communication that leaves the office
and goes to customers, prospective clients, vendors, or partners.
It may also be directed at regulatory agencies or city offices. Sales
presentations or marketing letters need to be exciting to generate
interest from the customer, but they also need to be based on facts.
When corresponding with entities outside your organisation, be it
for partnerships or other business needs, state your purpose and be
concise. Respect other people's time by getting to the point and stating

MODULE I: SELF ANALYSIS AND SELF REFLECTION

your request, whether orally or verbally.

Some questions and answers about communication:

1. How would you describe good/effective communication?

Good communication ensures instructions are understood properly,
new skills are acquired affectively, requests and questions are answered,
information is relayed with ease. You must learn to communicate
T Quickly: This includes the time taken to think, message, listen,
understand, and then take action.
T Comprehensively: Such that your ideas are received in the same
vein as they were sent.
T Sustainably: The cost of communication whether it is financial,
emotional, or otherwise is low, allowing ideas to flow in the system
easily without it breaking down (e.g., shouting and screaming
makes things clear, but it is not sustainable)
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2. Why and when do we need effective communication?

Effective communication is important all the time in every situation
whether professional or personal. Depending on the situation, effective
communication can save lives, marriages, countries, and help avoid all
sorts of every day issues.
 3. What are the greatest challenges to good communication?
T People who think communication is about WHAT YOU SAY, versus
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HOW YOU SAY IT

T People who focus too much on BEING HEARD, instead of
LISTENING TO OTHERS
T People who use the WRONG CHANNEL TO SEND A MESSAGE,
MODULE I: SELF ANALYSIS AND SELF REFLECTION

such as choosing to discuss a difficult situation with someone

else through a weak channel such as TEXT, EMAIL, or THROUGH
SOMEONE ELSE
T Not re-evaluating how you communicate, that is not checking to
see if people actually understood what was said.
4. How important is listening in communication?
Listening is equally, and some would say even more important, than
talking when it comes to good communication.

Conclusion
As human beings, we have a natural tendency to filter the information we
hear. All too often what we hear is not what was said. Listening should be
concerned with content first and feelings later.
Remember, listening is a passive action. Our personality plays an important
role in how well we listen. But hese skills like those of self-expression, they
can be learned, practiced, and mastered. Our society places much more
attention to the spoken word, but if you think about who influences you, were
they good talkers or better listeners? As we come to understand ourselves
and our relationships with others better, we rediscover that communication
is not just saying words; it is creating true understanding.
 Session 8
Understanding Failure

MODULE I: SELF ANALYSIS AND SELF REFLECTION

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Storytelling, Handouts 1 hour 35

caselet minutes

Aim of the Session

This session attempts to look at failure positively, thereby helping
participants learn to deal with failure more realistically and see it as a
learning experience.

Session Objective
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Æ To explore the meaning of failure in a business and to understand

how some events may be perceived as failure when they are
merely learnings along the path.
 Æ To learn how to interpret failure in a positive way by changing irrational
thought patterns.
PAGE 102

Expected Outcomes
Æ That participants learn to look failure as learning.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Æ That participants are able to work on the barriers along their path
keeping their motivation levels high.

Why is it important to understand failure?

The common notion which holds back people from getting into business is
the risk involved in it. They fear failure. The experience of failure can affect
a person both internally and externally. It is important to address this fear of
failure with your participants.
The session looks at failure as learning. While doing any activity, beginning
on any path, there is always a chance that you might fail due to a mistake,
a miscalculation, some unforeseen circumstance, etc. This however should
not de motive you. Failure should always be treated as stepping- stone
rather than barrier.

ACTIVITY 1 : STORY TELLING

Material Required
Handout

Activity Objective
This activity will help participants practice how to manage and
regulate emotions using helpful questions.

Process
The participants will be given a handout showcasing a situation. Go
over this with them and based on the information provided, ask
them to answer the questions given.
 Handout
Kamla tried to open a business but could not succeed. She thinks that her
friends joke about her and her failure, and as a result has stopped meeting
them. What is the Cognitive Distortion here?
Write down the answers to the following questions on the handout itself:
1. Are Kamla’s thoughts based on facts? What is the evidence that
supports her thoughts and what is the evidence to the contradictory?
2. Are there any alternative explanations for her beliefs? Can she explain
this reality in any other way than what she believes in.
3. Even if her thoughts were true what is the worst that could happen?
Now think about what is the best that can happen?
4. Do her thoughts help her in achieving her goals?
Allow 5 minutes and congratulate the participants for completing the activity.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Facilitators’ Note
PAGE 103

Discuss the situation and the answers given by participants in detail. This
will help them evaluate cognitive distortions and make them understand
that the way we view failure if often far worse than the actual situation at
hand.
 ACTIVITY 2: CASE STORY
PAGE 104

Material Required
Handouts, charts, sketch pens
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Handout
Maya is 32-year-old women who lives in a small village. She and her family
have been facing financial crises since her husband’s sudden death. The
incident had left her feeling helpless, but she did not want to burden her
father-in-law who was a daily wage labourer. To support herself and her
family, she thought of starting a catering service for customers within and
around her village. She started by informing her friends and neighbours
about her new venture, but soon realized that the demand for such a service
in this area was not sufficient for her to make a profit. Sometime after her
unsuccessful attempt at catering, she met with some of her friends who
suggested that she make homemade snacks and sell them in the market
which was about half an hour from her village. She got very excited and
immediately started making the snacks. However, within one month into this
and she noticed that while the amount of work kept increasing, the profit
was barely enough to help her sustain.

Part- 1
After her second attempt, Maya starts feeling unhappy and disappointed in
herself. Her family does not want her to invest more of her time and money
in any other business attempts. This makes her think that she is incapable
of doing anything independently. Convinced that she does not have the
necessary skills, she gives up on the idea of business.

Part - 2
After her second attempt, she feels unhappy but thinks that these two
experiences have taught her some important lessons. She would now
consider the costs involved, market prices, the demand for her products and
the target population before starting on a new venture. Keeping this in mind,
she thinks of meeting other women entrepreneurs in and around her village
and taking their opinion. She starts her homemade snacks business again,
but this time involves her sister-in-law for food preparation and brother-
in-law for transportation of these to the market. This helps her expand her
business and sustain it for a long time.
 Process
1. Divide the participants into groups of 3-4 members each.
2. Present them with the case story (refer to handout). You may choose
a volunteer to read out the case to the participants. You can also
distribute the case handouts to the participants.
3. Each team will be provided with a chart paper and set of sketch pens.
4. Ask each team to discuss different parts of the conclusion. (Part -1
and Part-2)

Facilitators’ Note

Distribute the parts evenly, that is, if there are 4 groups,

2 groups get Part 1 and 2 get Part 2, etc.

5. The following questions will be discussed within the groups:

T How does Maya feel in the above case study?
Possible answers:
Part - 1 : Maya feels unhappy and disappointed at herself.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Part - 2 : Maya feels unhappy but has not lost all hope.
T What does Maya think after the failure of her business in the
second attempt?
Possible answers:
Part - 1 : Maya thinks that she does not have the skills and is
incapable of doing business.
Part - 2 : Maya thinks that this experience has given her a
learning opportunity.
T What is the consequence/result (behaviour, action) of these
thoughts? What does Maya do after she has these thoughts?
Possible answers:
Part - 1 : Maya gives up on doing a business altogether.
Part - 2 : Maya uses the learning experience and applies that in
her next venture.
T What is the one thing that you want to take away from this story?
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6. The teams are given 15 minutes to discuss after which each team is
requested to present their observations to the group.
7. Appreciate the groups for their efforts and move on to discuss the
following.
 Æ Do all of us feel and think in the same way after encountering failure?
Æ There were two parts to this story, some of you got Part- 1 and some of
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you got Part- 2. Which among the two parts of the stories, do you like?
Why?
Æ Have you witness similar instances around yourself? Can you give us
an example from your own life?
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Key messages
When we experience a negative event such as failure, we try to make
sense of the situation by blaming ourselves or our capabilities. This may not
be based on facts or reality. These thoughts are called irrational thoughts
and they are merely ‘perceptions’ of how we look at ourselves, others, and
the future to be.
Rational thoughts on the other hand are based on reality. People who
engage in rational thought processes are more likely to be successful
towards achieving their goals and more effective in dealing with failure.

Negative event --> Irrational believes --> Unhealthy consequences

Negative event --> Rational believes --> Healthy consequences

8. In Maya’s example, in Part – 2, having rational thoughts (looking at what

went wrong) helped her improve her business.
Give more examples of changing irrational thoughts to rational thoughts
or encourage the participants to come up with these from their own
expereinces.

Different people approach failure in different ways

Success oriented - Success-oriented individuals tend to be optimistic,

adapt a proactive and positive orientation towards tasks, and respond to
setbacks with optimism and energy. For example, ‘I want to be independent,
and I will start a business’.
Fearful of Failure - These people tend to be anxious, motivated by a fear
of failure, live in self-doubt, and are uncertain about their ability to avoid
failure or achieve success. (Martin and Marsh, 2003). For example, ‘I want to
be independent, but I am scared that I will fail’.
Accepting of Failure - Individuals who accept and internalise failure have
given up to the point of not even trying to avoid failure. They usually feel
helpless and have lower levels of motivation to complete any task. For
example, ‘I know I am going to fail, so there is no point in trying’.
9. The facilitator can ask the participants which among the above-
mentioned types should an entrepreneur be? Gather the response and
mention the following:
“Individuals with success orientation are likely to perform better
in entrepreneurial activities since it requires energy and innovative
planning.” (Martin and Marsh, 2003; Collins et al, 2004)

10. Ask the participants if they think there is any positive aspect to failure.
Start a discussion to understand various perspectives.

Conclusion
Failure is also seen as a stepping-stone towards success in business. It
helps a person in understanding the attributes which may lead to failure
and hence, in avoiding that path. Therefore, copying success and avoiding
failure strategies are low-cost ways towards business success. (Coelho and
McClure). By changing our irrational thoughts into rational ones, we can
remain motivated to achieve our goals. Understanding our own irrational
thoughts is the first step towards change. This, however, comes over time
and from a lot of practice.

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PAGE 107
 Session 9
PAGE 108

Financial Literacy
MODULE I: SELF ANALYSIS AND SELF REFLECTION

O DOLO ALS REQ RATION

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Caselet Handouts 1 hour

Aim of the Session

Many participants feel that their financial situation will not allow
them to save as they are not capable of saving money. They should
leave this fear behind and start saving.

Session Objective
Æ To understanding the Concepts of Saving
Æ To understand the need for Saving
Æ To understand the importance of savings in building capital -
the first step towards Financial Independence
Æ To understand the power of Compounding
Æ To knowing how and where to save

Expected Outcomes
Æ Participants learn the concept of saving.
Æ Participants learn to relate it with their own spending patterns.

What is Saving?

Savings is defined as “A fund of money put aside as a RESERVE”. This is MODULE I: SELF ANALYSIS AND SELF REFLECTION
the common usage definition of savings. However, savings can also mean
‘economizing’ or cutting down on wasteful expenditure. When considered
from the angle of income and expenditure, savings is defined as the total
accumulated amount of income that is not spent on consumption. It also
refers to a sum of money not used and put aside for a specific purpose.
In simple terms, Income - Expenditure = Savings.
PAGE 109

One must remember that if one’s expenditure is more than their income the
equation would change and become Expenditure - Income = Borrowing.
 Why is saving important?
No matter how small the amount of saving, it is the prime requirement or
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the first step a person can take for financial stability. Also, a person who has
a habit of saving will seek help to build a small corpus with which s/he can
easily start their business.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

The concept would be explained through following caselet:

Ganga wants to have her own house within 7 years. She estimates the
current value of such a house to be Rs. 75,000. She also wants to make sure
that her daughter is provided with higher education and has a career. She
estimates the cost of higher education at existing levels to be Rs.50,000.
This amount would be needed after 10 years. Ganga then has the plan to
marry her daughter 15 years from now. She was impressed with the wedding
ceremony of her friend Laxmi’s daughter and wants to get her own daughter
married in the same way. She would need Rs. 100,000 for this.
In the medium term she wants to buy a TV set worth Rs. 6,000 and wants
to send her mother-in-law for pilgrimage which would cost Rs.1500. But
before all this, she needs repay her debt which amounts to Rs.10,000. She
also needs to pay an interest of Rs. 300 per month for this debt.
Ask the participants to write Ganga’s Financial Goals in a table as under:

Term Estimates at current

Term Purpose (Life cycle needs)
prices (Rs.)
Long-term
15 years Daughter’s Marriage 1,00,000
10 years Higher education for daughter 50,000
7 years Her own house 75,000
Total Long-term 2,25,000
requirements
Medium Term (less
than 5 years but
more than 1 year)
2 years Buy a Television 6,000
1 year Pilgrimage for mother-in-law 1500
Total Medium-Term 7500
requirements
Short Term (less than
1 year)
Immediate Repay Debt 10,000

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Total Short Term 10,000
Total amount 2,42,500

1. Tell the participants to estimate the amount needed for Ganga’s to

achieve her financial goals.

Estimation of Amount to achieve the said Goal

Goal 1- In case of the daughter’s marriage if we consider 5% inflation,

the cost of marrying the daughter would double in fifteen years. Hence,
Ganga would have to spend Rs. 2,00,000 towards marriage expense
after fifteen years
Goal 2- Similarly, for her daughter’s education she would require Rs.
81,450 after 10 years. (Since the cost would be double in 15 years, then
for 10 years it would increase by 2/3 the existing level of expense.)
Goal 3- In case of house, the cost would be Rs.1,05,550 (given that
the cost doubles in 15 years it would increase by 40 per cent here).
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Therefore, the total amount for long term goals at the time of incurring
the expenditure would work out to Rs. 3,86,950 or Rs. 3,87,000.
Goal 4- One can assume some increase in monetary requirements to
meet the medium terms goals, say in our example it could be Rs.6,200
for the T.V. and Rs.1,700 for the Pilgrimage.
 Goal 5- The short-term requirement is an immediate requirement of
Rs.10,000 plus interest thereon. This, if not paid regularly, shall go on
increasing.
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2. Tell the participants, one needs to find out the existing amount of saving
for a given month to achieve financial goals.
I. To find out the amount saved, one needs to track the current
MODULE I: SELF ANALYSIS AND SELF REFLECTION

income and current expenses.

II. While calculating the difference between current income and
current expenses, participants may realize that Ganga does not
have any surplus. Instead, they might find that she is in fact in a
deficit for which she has been borrowing.
Current income (-) Current expense = Surplus/ Deficit
Now, let us look at the total Monthly Income of Ganga’s Family
Ganga’s family is made up of herself, her husband, a young daughter,
and a grandmother. The husband earns Rs.2,700 per month and Ganga
earns Rs.1,700 per month. Therefore, their total income amounts to
Rs.4,400 per month. Her existing expenses are estimated as under:

Ganga’s Family Monthly Expenses

Particulars Amount
Routine Household Expenses (Food Bill, etc….) 1200
House Rent 200
Education Expenses (monthly fees) 25
Transportation (say, bus fare for the members of the family) 350
House goods – Toiletries 100
Kerosene 400
Matchbox 5
Drugs and Medical Bills (routine) 350
Entertainment Expenses 200
Travelling for leisure
Expenses on vices, namely cigarettes, alcohol etc. 400
Toys, Games etc for children 200
Personal Expenses 150
Total expense 3,380
Instalment (due for the month) on loans (including interests) 1,300
Total Cash Outflow 4,680

3. Ask participants to calculate whether Ganga has a Surplus or Deficit

Inflow (-) Outflow = 4400 (-) 4680 = -280.
 Discuss: As of now Ganga has a deficit of Rs.280, and the immediate
requirement of repaying debts is an issue.
4. Ask the participants, “What amount does Ganga need to save monthly
to achieve her long-term goals?”
5. Ask the participants to look at Ganga’s Income and expenses considering
the current Deficit.
T What steps would they suggest Ganga take to help achieve her
goals? Tell them to look at the expenses carefully. Mention that a
good start would be to track avoidable expenses and plan to avoid
all such expenses in the future.
T Ask the participants to track expenses that are avoidable from the
details of Ganga’s family expenses given above.
D Entertainment can be reduced by Rs.150
D Expense on vices can be avoided, which would bring down
total expenses by Rs. 400.
D Personal expense can be reduced by Rs. 100.
D Expense for children can be reduced by Rs.150.
Hence the family can reduce/avoid an expense of Rs. 800 every
month.
iii Ganga’s first priority should be to make sure that she pays off her

MODULE I: SELF ANALYSIS AND SELF REFLECTION

debt as soon as possible.
Looking at the dates by which she needs more money we
understand that she needs a monthly saving of Rs. 3046 per month
to achieve all her goals:

Daughter’s Marriage 2,00,000/180=Rs. 1111 monthly for 15 years

Education 81,450/120=Rs.680 monthly for 10 years
House 1,55,000/84= Rs. 1255 monthly for 7 years
Total Rs. 3046

iv If she avoids/reduces her expenses as explained above, Ganga

shall have surplus of Rs. 520 every month. Ganga needs to keep a
tight control on her expenses. She has to ensure that she does not
spend on avoidable expenses.
v She needs to track her income and expenses on a regular basis.
For this she must use the tool called the ‘Budget’.
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6. Explain that repaying old debts should be the priority. Once the
expenses are kept under tight control, the loan instalment of 1300 (Rs.
1000+interest of Rs.300) could be wound up by the end of 10 months.
Thereafter, Ganga shall have an additional surplus of Rs.1300. So, every
 month she shall have Rs.1300 + Rs. 520 (from avoiding unnecessary
expense) = Rs. 1820 as saving.
7. Tell the participants that it is important to check the returns on savings
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for achieving long term goals.

Facilitators’ Note
MODULE I: SELF ANALYSIS AND SELF REFLECTION

One important point which now needs to be discussed with the participants
is returns on savings. If saving is done on regular basis, the amount saved
can be invested somewhere and a person can earn returns on it. The returns
on saved money can help attain one’s goals.
However one also needs to create provision for emergencies and at least
some amount should be set aside for emergencies on a regular basis.
(Explain how insurance is a way to mitigate risk).
You must multiply the time-period of your planned surplus and calculate
the returns on the amounts saved.
1. For simple understanding assume income level shall remain the same
(or increase by 2% every year)
2. Assume 6-8% returns (not compounding) on savings.
3. Consider the returns on your existing savings.
a) Consider the total amount saved over the 15 years horizon for
Ganga. The amount works out to approximately Rs. 3,16,420.
The total amount needed to achieve the long-term goals is Rs.
3,87,000. The difference is an area of concern. A part of this would
be taken care by the interest earned on savings.
Let us see this in the following point.
b) The first goal, to be achieved in 7 years, is of buying a house. The
total amount saved till the end of 84 months would be 1,39,880.
The accumulated simple interest at 8% p.a. would be Rs.36,426.
The total amount available to Ganga would thus be Rs. 1,76,306.
She estimates the cost of the house to be Rs. 1,55,000. Ganga
would have a surplus of Rs.21,000 which can be used in achieving
her other goals. One thing has to be pointed out, that if a person
achieves the goal at the end of 7 years and thereafter uses the
balance amount for some other purpose, other goals would go
haywire and there are chances that the person will fall into the
financial crisis trap again.
c) Ganga’s second goal is of higher education for her daughter. It’s
a ten-year horizon. The accumulated amount left with Ganga at
the beginning of the eighth year would be Rs. 21000. Add to this
the saving of Rs. 67,340 during the 36 months left till the end of
10 years. This total is Rs. 88,340. The interest earned on this would
 amount to Rs. 26,237. The total amount works out to be Rs.1,14,577.
She can utilize Rs.81,450 to fulfil her goal. She would be left with
Rs. 33,427.

Particulars Amount in Rs.

Eight years balance 21,000
Add savings (3yrs/36months) 67,340
Total 88,340
Add interest 26,237
Total 1,14,577
Utilized for education 81,450
Balance available 33,427

e) The last goal on the 15-year horizon should now be considered.

Ganga has a principal amount of Rs.1,42,320 on which she would
earn an interest of Rs. 34,680. The total amount roughly works
out to Rs.1,77,000. She needs Rs.2,00,000. Hence, she has a
deficit of Rs.23,000. The amount could be managed by Ganga,
by increasing her income stream. Also, for our example, the
returns are considered on simple interest. If she is able to achieve
compound interest or good returns on her investment, she won’t
have an issue in managing any of her long-term goals.

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Particulars Amount in Rs.
Opening balance 33,120
Add savings 5 years 1,09,200
Total 1,42,320
Add interest 34,680
Total funds available 1,77,000
Amount needed for marriage 2,00,000
Deficit 23,000

Conclusion
The concept of financial literacy is important not only for Entrepreneurs but
also for day-to-day life of any participant whether in a job or self-employment.
PAGE 115

When someone is financially literate, he/she understands how to allocate

his/her income toward various goals simultaneously—not just for ongoing
expenses, but for savings, debt repayment and for an emergency fund as
well. The person has the tools to thoroughly research and evaluate loans,
credit cards and other investment opportunities.
MODULE I: SELF ANALYSIS AND SELF REFLECTION PAGE 116

NOTES
 Module 4
Concepts of
Running a Business
MODULE 4 SESSIONS 14 hrs 30 minutes Pg. 117

4.1 Demand and Supply 2.30 hour Pg. 118

4.2 7 P’s of Marketing 2+2 hour Pg. 128

4.3 Costing and Pricing 3 hour Pg. 138

4.4 Break-even Analysis (IIE) 1 hour Pg. 148

4.5 Accounts and Bookkeeping (Aleap) 1 hour Pg. 156

4.6 Operations Management 3 hour Pg. 161

 Session 1
PAGE 118

Demand and Supply

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Classroom activity, Handouts, Student 2.30 hour

Case study, Worksheet
Group Activity.

Aim of the Session

Æ That participants understand the concept of demand and supply
Æ That participants recognize various factors that influence
demand, supply, and pricing.

Session Objective
Æ That participants are introduced to the concepts of demand
and supply.
Æ That participants gain first hand experience on how they work.
Æ That participants understand the concept of pricing and equilibrium.
Æ That participants understand how the dynamics of demand and supply
play in the real world.

What are the meanings of

“Demand” and “Supply?

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Demand refers to a consumer's desire to purchase goods and services at
a specific price. Increase in the price of a good or service will decrease the
quantity demanded and vice versa if, all other factors are made constant.
Supply is the quantity of a good or service available to consumers at a
specific price(s). Supply of a good or service will increase when there is an
increase in price. This helps businesses to make a profit on the goods sold.
Change in price of the goods will therefore change the quantity supplied.
Law of Supply & Demand: Demand and supply together define the prices of
goods and services and the total volume of that good or service exchanged
in a market. For every product however, its demand and supply is unique.
Equilibrium: When the supply of a good and its demand are equal, it reaches
a stable price that buyers and sellers agree on, is called an economic
equilibrium.
PAGE 119

Why is it important?
The supply of goods and their demand affect their price and volumes traded
in the market. As entrepreneurs, it is important to know that when demand
increases prices fall.
 To be able to make more profit on what we sell, it is important that we
understand the role both consumers and producers play in the market.
PAGE 120

Producers generally earn more money by attracting more customers.

This typically happens in times like sales when a lot of consumers
are willing to buy things. But one must remember that when demand
increases, prices fall. So, if a producer tries to earn more by increasing
prices for his goods at a time of sale for example, s/he will find less
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consumers who are willing to buy what they wanted at the greater price.
They will look for and most likely find other producers willing to sell the
same good at a lower price. Producers can sell goods at a profit as long
as it is a price the consumers are willing to pay. The price a consumer
is willing to pay is often determined by “equilibrium1” between demand
and supply. Let us try and understand this from the activity that follows:
1 Investopedia.com

ACTIVITY 1 : NAIL STORY2

Material Required Duration

Handout 10 min

Activity Objective
That participants understand the concepts of demand and supply

Process
Narrate the following story about the construction nails to the participants.
“Long ago, when houses made of wood were first being built, nails
were very expensive. Now if you think of nails as
a commodity, they are so small, so seemingly
inexpensive! What do you think was happening
for such a small item to be fetching a large
price?
Explain: It seems funny to us
today, but it's true - each nail had
to be made by hand, pounded
into shape by a blacksmith.
Though it wasn't difficult, it took
time. Even a good blacksmith
wouldn't be able to make more
than a few hundred nails in an entire day. Since the supply of the nails
was less than their demand, their price was high.
Today, however, we have machines that can manufacture thousands
of nails perhour. So, there is a much greater supply of nails now. And
consequently, their price has dropped substantially.”

2 Pravah

ACTIVITY 2 : PEARL EXCHANGE3

Material Required
Handout

Process
Read out the following to your class.
“Pearls from the island of Bali are valued all over the world. Buyers
and sellers of these pearls meet weekly at the Pearl Exchange. Let
us pretend for the purpose of this activity that the Pearl Exchange is
located in this room. During 5 minutes long trading sessions, half the

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class will be buyers and the other half will be sellers. The goal is to
make as much surplus as one can by negotiating a favourable price.
Buyers (consumers) must try to buy the pearls as cheaply as they can.
If they pay less than their maximum price, they make a consumer’s
surplus
Sellers (suppliers) must try to sell the pearls for as much as they
can. If they sell above their minimum price, they make a producer’s
surplus.”
1. Explain to the students:
T That they are participating in a ‘simulation of a competitive
market’. Distribute handouts of ‘Buyers and Sellers Surplus
Charts’ and tell students to fill these out as they go.
T Their roles may change as the activity progresses,
depending on whether, or not, there are enough buyers
or sellers for the next round at the end of each 5-minute
round. Tell students what they’re selling/buying – the rare
PAGE 121

pearl discussed above.

2. Now, divide students into buyers and sellers and ask each group
to go to either side of the room. Hand-out “pearls” to the sellers.
These can be pennies, marbles, coins, or anything else at hand.
 3. Explain:
T That a minimum price will be set for sellers. Sellers are NOT allowed to
PAGE 122

sell a pearl under this price.

T That maximum price will be set for buyers. Buyers are NOT allowed to
buy for over this price.
T One the price is agreed upon and an exchange of the good has been
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made for money (imaginary money for the purpose of this simulation –
can be pieces of paper with amounts written on them). the buyer and
seller will report the transaction to the recorder (teacher), who will then
write this price or value of exchange on the board.
4. Show students how to fill out their ‘Buyers and Sellers Surplus Charts’ to
record everything they buy or sell – they should note the price of the good
as well as the surplus they have earn in each round.
5. Each session of negotiation will last for 5 minutes.
6. Maximum and minimum prices will be set for each round and conveyed
only to relevant parties – that is – the sellers will only know the minimum
price they can sell at, and the buyers will only know the maximum they are
allowed to give. Make sure that these maximum and minimum prices are
not revealed to anyone else.
7. Buyers and Sellers should not buy or sell from the same person in any round.
If a student is unable to make a sale as a seller or buy an item as the buyer
in any round, the entire maximum or minimum set must be deducted from
their accumulated surplus.

Scenarios4

Scenario 1: Equilibrium
There should be an even number of buyers and sellers for this round.
Seller’s minimum: 300 Buyer’s maximum: 1300

Scenario 2: Equilibrium
Buyers and sellers should switch roles. There should be an even number of
buyers and sellers for this round.
Seller’s minimum: 250 Buyer’s maximum: 1250

Scenario 3: Supply Decrease (Price Increases, Quantity Decreases)

In this round, a mysterious virus kills many oysters. Roughly 1/3 of the class
should be sellers. 2/3 should be buyers.
Seller’s minimum: 400 Buyer’s maximum: 1400
 Scenario 4: Demand Decrease (Price Decreases, Quantity Increases)
The price of diamonds (a competitive product) decreases. Everyone rushes
to buy diamonds, and nobody is le ft to buy pearls. Their demand has
dropped. Roughly 2/3 of the class should be sellers. 1/3 should be buyers.
Seller’s minimum: 1250 Buyer’s maximum: 250

Student's Worksheet

SELLER SURPLUS BUYER SURPLUS

(Sellers use this side) (Buyers use this side)

Price - Minimum = Surplus Round 1 Maximum - Price = Surplus

Price - Minimum = Surplus Round 2 Maximum - Price = Surplus

Price - Minimum = Surplus Round 3 Maximum - Price = Surplus

Price - Minimum = Surplus Round 4 Maximum - Price = Surplus

Teacher’s Board

Round 1 Round 2 Round 3 Round 4

Price/ Round
(Price) (Price) (Price) (Price)

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1

8. Explain the concepts of Demand, Supply, Pricing and Equilibrium as follows.

A. The Law of Demand

The law of demand states that, if all other factors remain equal or constant,
PAGE 123

the higher the price of a good, the less people will demand that good. In
other words, the higher the price, the lower the quantity demanded. The
amount of a good that buyers purchase at a higher price is less because
as the price of a good goes up, so does the opportunity cost of buying that
 good. As a result, people will naturally avoid buying a product that will force
them to forgo the consumption of something else they value more
PAGE 124
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Factors affecting Demand

I. Tastes and Preferences of the Consumers: [VARIABLE]

Tastes and preferences are an important factor determining the
demand for a good. If a good is liked by a consumer, its demand would
be high, and its demand curve would lie at a higher level compared to
one where the consumers do not appreciate the good as much.
People’s tastes and preferences are variable, they change often, and
thus the demand for a good based on tastes and preference also keeps
changing.
This factor is taken as a constant while drawing a demand curve.
II. Income of the People: [DIRECTLY PROPORTIONAL TO DEMAND]
The demand for goods depends a great deal upon the purchasing
power of the people, this is largely determined by how much they
earn. The greater their income, the greater their purchasing power,
the greater their demand for goods. When, because of the rise in the
income of the people, the demand increases, the whole demand curve
shifts upwards and vice versa.
This factor is taken as given or constant while drawing the demand
curve.
III. Changes in Prices of the Related Goods [DIRECTLY PROPORTIONAL
TO DEMAND]
The demand for a good is also affected by the prices of other goods,
especially those which are related to it as substitutes or complements.
Therefore, when the prices of the related goods, substitutes or
 complements change, the whole demand curve would change its
position. When the price of substitutes goes up, the demand for our
product will increase in response, and our demand curve will shift
upwards. Similarly, when the prices of substitutes fall, the demand for
our product will decrease in response, and our demand curve will shift
downwards. (This factor is also taken as constant while drawing the
demand curve.)
IV. Advertisement Expenditure: [DIRECTLY PROPORTIONAL TO DEMAND]
Advertisement expenditure made by a firm to promote the sales of its
product is an important factor determining demand for the product. The
purpose of advertisements is to influence the consumers in favour of a
product. Advertisements are given in various media such as newspapers,
radio, television and now the internet. Advertisements for goods are
repeated several times so that consumers are convinced of their superior
quality. When advertisements prove successful, they cause an increase
in the demand for the product.
V. The Number of Consumers in the Market: [DIRECTLY PROPORTIONAL
TO DEMAND]
The market demand for a good is obtained by adding up its current as
well as prospective demand, at various possible prices. The greater the
number of consumers for a good, the greater the market demand for it.
VI. Consumers’ Expectations about Future Prices:

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Another factor which influences the demand for goods is the consumers’
expectations about the future price of a good. If due to some reason,
consumers expect that in the near future the price of a good would rise,
then in the present they would demand greater quantities of that good,
so as to save some money in the near future by buying more of it at the
current (lower) price . Similarly, when consumers expect the price of a
good to fall in the near future, they postpone buying it in the present
(thinking that they will buy it when they get a better price) causing the
present demand for the good to fall.

B. The Law of Supply

Like the law of demand, the law of supply demonstrates the quantities
of a good that will be sold at a certain price. But unlike it is with the
law of demand, the relationship between the price of a good and its
supply is a directly proportional one, causing the supply curve to be
upwardly sloping.

Factors affecting Supply

PAGE 125

I. Price of the given Commodity

The most important factor determining the supply of a commodity is its
price. The price of a commodity is directly related to its supply. This means
 that the higher the price of a good, the higher its quantity supplied and
vice-versa. Producers supply more at a higher price because selling a
higher quantity at a higher price increases revenue.
PAGE 126

Supply (S) as a function of price (P) can be expressed as:

S = f (P).
MODULE I: SELF ANALYSIS AND SELF REFLECTION

The directly proportional relationship between price and supply is

known as ‘Law of Supply’.
Other factors contributing to the supply of a good are as follows:
II. Prices of Other Goods:
As resources have alternative uses, the quantity supplied of a commodity
depends not only on its price, but also on the prices of other commodities.
Increase in the prices of other goods makes them more profitable to
produce in comparison to the given commodity. As a result, firms may
shift their limited resources from the production of the given commodity
to the production of other goods. For example, increase in the price of
the other good (say, wheat) will induce farmers to use their land for the
cultivation of wheat in place of the given commodity (say, rice).
III. Prices of Factors of Production (inputs):
When the amount payable to factors of production, i.e., the cost of inputs,
increases, the cost of production also increases. This in turn decreases
profitability. As a result, a seller may decide to produce less of the said
good, thus reducing its supply. On the other hand, decrease in prices of
factors of production or inputs, may induce the seller to produce more,
thus increasing the supply of the said good, for a subsequent rise in
her/his profit margin.
IV. State of Technology:
Technological changes can influence the supply of a commodity.
Advanced and improved technology may reduce the cost of production,
which in turn may raise the margin of profit earned while producing the
commodity. This may induce the seller to increase its supply. However,
technological degradation or complex and outdated technology is
likely to increase its cost of production and this in turn will lead to a
decrease in its supply.
V. Government Policy (Taxation Policy):
Increase in taxes raises the cost of production and, thus, reduces the
supply of a commodity, given a lower profit margin. On the other hand,
tax concessions and subsidies increase the supply of a commodity as
they make it more profitable for firms to supply the said goods.
VI. Goals / Objectives of the firm:
Generally, supply of a commodity increases only at higher prices as
this fulfils the objective of profit maximization for a firm. However, some
 firms may be willing to supply more even at lesser prices for some
time. This may not maximise their profits in the short run but will
help capture extensive markets and enhance their brand value,
their status and prestige, which will maximise their profits in the
long run.

3. Equilibrium

When supply of a good is equal to the

demand for it, the product is said to
Price

De
be at equilibrium or to have achieved

ly
ma
its equilibrium price. The equilibrium

pp
is the point at which the supply

Su
nd
function and the demand function
intersect. The allocation of goods is
at its most efficient at this point since
the amount of goods being supplied Equilibrium
is exactly the same as the amount of P*
goods being demanded.
Theoretically, the suppliers are able
to sell all their produce and the
consumers are able to get all their
demands fulfilled at equilibrium
price Q* Quantity

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9. Now
T Group Task
Do a demand and supply analysis and estimate the cost of a product/
service based on the demand and supply for the same in an imagined
area. Ask the students to ensure that they have kept all the factors
mentioned above in mind and to have the reasoning, behind the price
they have come up with, ready for discussion.
T Self-task
Replicate the process with your own business idea. Do a demand and
supply analysis for your product/service.
Note: The activities above must be supplemented with examples from the real
market to help students experience the working of the laws of demand and
supply in action.

Conclusion
PAGE 127

Knowledge about the concepts of demand and supply is crucial for running any
business. The laws of demand and supply determine whether a product sells
profitably or at a loss given a perfectly competitive market.

3 & 4 Pravah
 Session 2
PAGE 128

7 P’s of Marketing
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Classroom activity, Video Aid, Cards 2 + 2 hours

Interactive
session, Lecture

Aim of the Session

This section introduces the participants to the concept of markets,
their evolution, techniques used in market research, the concept of
the marketing mix and the 7 P’s of marketing.

Session Objective
Æ For participants to understand the concept of a market and its
evolution over the time.
Æ For participants to understand the techniques of Market Research and
the instruments used in the same.
Æ For participants to appreciate the role of Market Survey as a source of
collecting market information.
Æ For participants to understand the concept of the marketing mix and
the 7 P’s of marketing.

The 7 Ps
The 7 Ps are a set of recognised marketing tactics, which one may use
in any combination to satisfy the needs of their customers in any given
target market. The 7 Ps are controllable but influenced by their internal and
external marketing environments. Combining these different marketing
tactics to meet the customers' needs and wants is called using the 'tactical
marketing mix'.

Why are the 7Ps important

The ‘7Ps framework for the digital marketing mix’ or the 7Ps help
entrepreneurs review and define the key issues that affect the marketing of
their product or service.

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The Concept of a ‘Market’
Tell the students, “You all must be remember a time when you visited your
local market – a busy, noisy, crowded area bustling with shops, hotels,
cafeterias, hawkers and peddlers shouting on the top of their voices to
attract customers. Some of these customers must have seemed to in a hurry
to buy and leave, some others strolling and there just for window shopping!
The old marketplaces, at least in large cities, have largely been replaced
by sophisticated, neat, and clean shopping complexes and centrally air
conditioned malls, well equipped with theatres and cafeteria and washrooms
all under one roof! They are filled with decked up showrooms piled with
variety and display, making buying tempting but choices difficult!
The markets of Connaught Place or Chandni Chowk in Delhi are now places
which tourists include in their sight-seeing lists. They represent an olden
time where one goes to buy souvenir shopping for friends and family.
However, these remain important wholesale hubs and you will often see
PAGE 129

traders carrying huge amounts of goods from them be it for further use or
for re-selling!
Now, divide the class in groups of four and ask them to list down the
differences they can remember or think of between the old marketplaces
and the new swanky ones. Look for their responses.
MODULE I: SELF ANALYSIS AND SELF REFLECTION PAGE 130
Conclude the session by explaining markets are the hub of economic
activity for any country. They help in making an economy strong and stable.
The change one sees is the markets today is an ongoing one, with time it
has broken the boundary of physical spaces and grown to include online
markets now. Such changes are ongoing, and entrepreneurs must strive to
understand and accept them. They must try and adapt to these changing
times and situations to keep one step ahead while running their businesses.

Market Research
Tell the Class - Market Research is a stepwise process to collect information
related to a market and/or your target audience’s need to be able to identify
an idea or opportunity wherein you can design a solution or fulfil a need to
create a profitable product or service.
As an entrepreneur, it is important to identify the right market or the right
target audience. If you try to market your product or service to everyone you
will end up wasting both your time and money.
Now tell them the following cases where market research gave a win-win
situation to brands.
'Amrutanjan' was the market leader in
the balm market when Vicks Vaporub
was launched. The company had
to decide whether to position their

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product directly against the leader or
to carve out a separate niche. After
much research work, it was decided
that they will position the brand 'Vicks
Vaporub' exclusively as a rub for colds.
Later, and once again, based on
research, Vicks Vaporub re-launched
itself with a stronger formulation for
faster relief. In the next few years,
Vicks Vaporub became the largest
selling brand for cold remedies.
Dabur Chyawanprash, after market
research, went in for a change in
packaging and advertising in 1993.
They too witnessed a rise in their
market share.
PAGE 131

Rasna had received a poor market

response when they first began.
They conducted detailed market
research and thereafter incorporated
 the strategy of "the influence – the child, they focussed on the ease of
preparation, backed with a quality product available at a viable price – one
pack made 32 glasses! Advertisement campaigns reinforced these changes
PAGE 132

with a winning campaigns such as “I love you Rasna!”

Rasna came to dominate 85% of soft drinks concentrate market. The
research brought in the results and Rasna became a success story.
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Procter & Gamble calls or visits over one million people in connection with
about 1000 research projects undertaken by its different product operating
divisions.
Conclude by explaining that companies often use 'Market Research' to
create new formulations, or add ingredients or improve the aesthetic appeal
of their products to reinvent their brand image and sell more!

Steps in Market Research

1 Defining the marketing problem to be tackled and

identifying the marketing research problem involved
in the task

2 Specifying the information requirement, i.e.,

preparing a list of the needed information

3 Developing the research design and research

produce i.e., determining whether such information is
already available, either in records of the company or
in outside sources

4 Information i.e., select the research instrument to be

used, select sample type and size

5 Analyzing the information and interpreting it in

terms of the problem being tackled

6 Summarize the findings

7 Preparing the research report

 Now ask the students: It is a known fact that in many parts of the
country the summer heat is life risking. At the same time not everyone in
those parts can afford an air conditioner. Develop a product or a service
to cater to this problem. What is your strategy for market survey?

The Marketing Mix

Now tell your class about the Marketing Mix.

The Marketing mix is the set of areas which an entrepreneur needs to be
mindful of while setting up a plan to promote their goods or services. The
Marketing Mix focusses on the 7 Ps that help in practical implementation
of the plan.
For a good marketing mix, an entrepreneur needs to identify her/his correct
target audience, or customers to serve her/his service or product to.
Placement or distribution plays an equally important role. An entrepreneur
needs to position and distribute the product in a place that is accessible to
potential buyers.

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Place Price Promotion People Process Physical Product
Environment

Facilitators’ Note

The diagram given below can be presented to the students in the form of
a chart. Explain the components one by one, and raise the questions given
under each component in front of your class to explain how they must think
PAGE 133

about this component. This is to ensure that every student has a complete
understanding of each of the components of the mix.
 1. Product:
The Product is the item or service you offer to your customer. This is
PAGE 134

the core element for fulfilling their needs. While developing the right
product, you have to answer the following questions:
T What does the customer want from this service or product?
T How will the customer use it?
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T Where will the customer use it?

T What features must the product have to meet the
customer’s needs?
T Are there any necessary features that you missed out on?
T Are you creating features that are not needed by the client?
T What’s the name of the product?
T Does it have a catchy name?
T What are the sizes or or colors it is available in?
T How is the product different from simliar products of your
competitors?
T What does the product look like?
T Is it an attractive design, why?

2. Place:
Here are some of the questions that you should answer while developing
your distribution strategy:
T Where do your customers look for your service or product?
T What kind of stores do potential customers go to? Do they shop
in a mall, in a regular brick and mortar store, in the supermarket,
or online?
T How do they access the different distribution channels?
T How is your distribution strategy different from your competitors?

3. Price:
Price is a very important component of the marketing mix. Here are
some of the important questions that you should ask yourself while
setting the price for your product:
T How much did it cost you to produce the product?
T What is the perceived value of your product according to your
customers?
T Do you think that a slight price decrease could significantly
increase your market share?
T Can the current price of the product keep up with the price of the
product’s competitors?
4. Promotion:
While thinking about a promotion strategy, think about the following.
T How can you send marketing messages to your potential buyers?
T When is the best time to promote your product?
T Will you reach your potential audience and buyers through flyers,
newspapers, or television ads?
T Is it best to use new age promotions such as social media and
email marketing while promoting your product?
T What is the promotion strategy of your competitors? How do you
intend competing against it?

5. People:
‘People’ refers to both, your target market and people directly related
to the business. It is important to hire and train the right people to
deliver quality products and superior services to customers. It also
important that your support staff, be it someone running the support
desk, the customer service executive, people employed in promotions
such as designers and copywriters, people involved in production
and supervision, be it manufacturers, foremen, product managers
or programmers, that every single person involved in your business
is committed to delivering their best to the process and thus the
customer. Good relations will your staff, vendors and distributers often

MODULE I: SELF ANALYSIS AND SELF REFLECTION

result in more satisfied clients as the product and experience delivered
will show quality and commitment.

6. Process:
The systems and processes of the organization affect the execution of
a service. You must make sure that you have a well-tailored process in
place to minimize costs and losses due to oversight or negligence.

7. Physical Evidence:
In service industries, there should be physical evidence that a service
was delivered.
Additionally, physical evidence pertains also to how a business and its
products are perceived in the market. Branding is an exercise in creating
physical evidence for a product. For example, when you think of fast
food, you are likely to think of McDonalds, when you think of sports
shoes, names like Nike or Adidas may come to mind. These companies
are all market leaders and have established a physical evidence in the
PAGE 135

minds of customers through their marketing. This in turn has created a

psychological evidence of their product in the customer’s mind.
 ACTIVITY 1 : MARKETING MIX
PAGE 136

Material Required Duration

None 1 hour
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Process
1. Divide the class into groups of 5 or 6. Ask them to choose any
one product or service from the list given below and design
a marketing mix. Ensure that no two or more groups repeat a
product:
T Lemon Juice
T Salon
T Laptop
T Car Repair
T Furniture Designing
T Restaurant
T Boutique
T Tiffin Service
T On call home repair
T AC Servicing
2. Now, tell participants that they need conduct a market survey
to complete their marketing plan.
For goods and services, the participants intend to sell:
a) Talk to potential customer of all types (e.g., households,
business, etc.) to understand
T What do they look for when they buy
the product or service?
T What problems do they face in buying
the product or services?
T What do they think about your competitors?
b) Observe your competitor’s business to understand:
T What goods or services are they providing?
T What price are they selling at?
T How are they attracting customers?
 Facilitators’ Note

Explain the importance of market research and a marketing plan in

establishing a business.

Some questions about marketing/market research and their possible

answers:

1. What are the 7 Ps of marketing?

The 7 P's of marketing include product, price, promotion, place, people,
process, and physical evidence. These seven elements together
comprise the marketing mix.

2. Why are the 7 P's of marketing important?

The 7Ps help companies review and define key issues that affect the
marketing of their products and services, also helping review strategies
engaged by competitors. They are also referred to as the ‘7Ps framework
for the digital marketing mix’ now.

3. Name some techniques of market research?

Four common types of market research techniques include surveys,

MODULE I: SELF ANALYSIS AND SELF REFLECTION

interviews, focus groups, and customer observation.

4. Why is market research so important?

Market Research can significantly help your marketing strategy by
providing key insights and information relevant to your business. It can
provide an in-dept analysis on the needs of your customers as well as
on strategies employed by your competitors.

Conclusion
The 7Ps of marketing is one of the many frameworks available to help
you market your products and services. They can be an important value
add to your marketing toolkit. Tt is expected that this session has helped
the students understand how the Marketing mix can help add value
to their business.
PAGE 137
 Session 3
PAGE 138

Costing and Pricing

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Classroom activity, Case lets, “Kavita discovers the costs 3 hours

Interactive session, of doing business,” and “Sangita
Lecture Chana Bhatura.” Handout – Cost of
my business, chart papers and pens

Aim of the Session

Each business sells either a product or a service. It is important to
understand is how to evaluate the unit cost of these and what factors
to keep in mind. This cost plus profit (or loss) will determine the price
of the product in the market. This session gives an overview of Cost
and Pricing.
Session Objective
That participants understand various cost structures and how to price their
product for starting their business.The 7 Ps

Expected Outcomes
I. To help participants relate costing concepts with production
planning.
II. To help participants understand Cost Structure, including all the
costs and expenses that a company is likely to incur while running
its operations.
III. To help participants finalize their own costing and profitability plan.
IV. To help participants decide on monthly production targets based on
the above.

Cost of doing business

Cost plus profit is a cost-based method for setting the price of goods and
services. Under this approach, the direct material cost, direct labour cost,

MODULE I: SELF ANALYSIS AND SELF REFLECTION

and overhead costs for a product are added up, and then topped with
a markup percentage to create a margin of profit, in order to derive the
price of a product. During the session participants understand the various
costs involved in starting their business.
A correct evaluation of all costs involved in running your business
therefore becomes essential before you can set a price for your product.
This session distinguishes between fixed and variable costs involved in
running a business and works to derive a cost structure based on the
same.

Why is understanding cost important?

Articulating the Cost Structure and understanding how to price your
product or service is crucial to developing your Business plan. It is said
that ‘failing to plan is planning to fail’.
In this session, you will be taught about how you may develop a business
PAGE 139

plan by calculating your costs to determine the pricing of your product

at the beginning of your business. You will be able to practice verbally
pitching your business idea, applying the principles of Cost and Pricing
to your pitch.
 ACTIVITY 1 : COST OF DOING BUSINESS
PAGE 140

Material Required
Handouts, board and chalk
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or chart paper and marker pens

Process
1. Distribute the handout “Kavita discovers the cost of doing business”
and read it along with your class.

Handout 1
KAVITA DISCOVERS THE COSTS OF DOING BUSINESS
One day when Kavita was visiting her parent’s village, she met Nazira,
daughter of Mohammad, the fish seller. Nazira has studied Business
Management and after finishing her education, she decided to start her own
fish pickle business. Kavita observed that Nazira was looking a little worried.

Kavita: Nazira Behen, I am so happy to see you after so many years. I heard
that you have decided to focus on Mohammad Uncle ‘s the fish pickle
business. This is such great news.
Nazira: Yes, I wanted to be my own boss, rather than work for others. But
running one’s own business is quite challenging as well. We are going to
start production and sales after three months, but we are already incurring
costs.
Kavita: That’s surprising. How can you incur cost when you have not even
started your production? I am curious, what are these costs, if you don’t
mind telling me?
Nazira: Sure. There are several such items:
1. I am paying a rent of Rs.20,000 per month for the factory where the
pickle will be produced. I have to pay this rent even if there is no
production and sales.
2. I have purchased machines worth Rs. 6,00,000. They are still being set
up, but I have already incurred this cost.
3. I am paying an interest of Rs. 5, 000 on the loans I have taken. The bank
is charging us interest even if we are not producing or selling yet, it
began from the day my loan came into my bank.
4. I am paying, Rs. 8000 each to two workers for managing the factory.
Additionally, I am paying a salary of Rs. 2000 per month to the security
guard and Rs.2000 for electricity and water. I am also drawing a salary
of Rs. 25000 per month for myself.
Kavita: Oh ok. But why did you not include the total cost of the machinery
in your monthly cost?
Nazira: Yes, you are correct. The cost of machinery is calculated separately.
My machine supplier has told me that the machine is going to last for at
least 10 years. I have spent Rs. 6,00,000 on it. This means that the annual
cost of my machinery is 6,00,000/10 = Rs.60,000. The monthly cost is thus
Rs. 60,000/12=Rs.5,000 per month.
Kavita: How are these costs going to change when you start your production?
Nazira: By now, you must have guessed it. The costs that I have mentioned
before will remain the same even when I start production. These costs are
like a fixed load that my business will have to carry whether I produce or not.
On top of these costs, there will be costs which will depend on how much I
produce. Can you guess these costs?
Kavita: Cost of fish for example. You will need fish when you start production!
Nazira: Yes, that is one of the raw materials used. Fish is going to cost me
Rs.120 per kg. But I will also be using other raw material, such as, oil, spices
and additives which will cost me another Rs.120 per kg approximately. I am
also going to bear a labour cost of Rs. 20 per kg of fish pickle. I will need four

MODULE I: SELF ANALYSIS AND SELF REFLECTION

bottles for packaging 1 kg of pickle. Packaging will cost me Rs. 40 per kg. I
can produce 750 kg of fish pickle every month. I can sell the fish pickle at the
wholesale price of Rs.500 per kg.
Kavita: Nazira, I cannot thank you enough for sharing this information about
cost. Our discussion has shown me the way I should go about thinking while
planning my paper bag business. Is it ok if I come and meet you again next
week to discuss more on this?
Nazira: Sure, you are like my sister. Let’s meet in the evening next time. I will
be freer to discuss things after business hours. Why don’t you have a cup of
tea with Abba and me before you leave?

2. List the different costs in Nazira’s pickle business on a board or a chart

as follows. Put all costs which don’t change with production together,
and all costs which changes with production together on the two sides
of board/chart. Tell the participants that costs which remain constant
have the name ‘Fixed cost’ and costs which change with how much you
PAGE 141

produce are called ‘Variable costs’.

 Costs involved in Nazira’s Fish Pickle Business

Cost per Kg of
PAGE 142

Fixed Cost Cost Per Month Variable Cost

Pickle

Rent 20,000 Raw Material

Interest 5,000 Fish 120

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Salary Oil, spice and 120

additives

Staff 18,000 Packaging 40

Nazira 25,000 Labour 20

Water & Electricity 2,000 Total 300

Machinery 5,000

Total 75,000

3. Once you have explained the above example, take another one.
Distribute the handout “Sangita Chanda Bhatura” and like last time, go
over it with the students in your class.

Handout 2
SANGITA CHANA BHATURA
Sangita is 28-years-old, a young mother of who lives in a basti in West Delhi.
Sangita’s husband pulls a cycle rickshaw in the Janak Puri area of West
Delhi. She has two school going children - a son and a daughter.
She came to know of this course, where they were helping people become
entrepreneurs. She felt that the course might help her achieve her dreams
and joined it. During the course, she dreamt of starting with a small chana
bhatura shop which would offer hygienic & tasty food to people at reasonable
prices. There were no chana bhatura shops in her locality and she felt she
could earn a good income by setting up the shop.
Once she had the idea Sangita could not wait to see her shop up & running.
She dreamt of becoming the most popular chana bhatura wala in her area
within 6 months!
Sangita decided to meet 4-5 Chana Bhatura shops in other neighbourhoods
around her to estimate the investment needed. She found out that she would
need to buy cooking utensils, get a sign board, get furniture and furnishings
for her shop to begin with. She explored the market around her and arrived
at the following investment estimate:
 Investment needed for setting up Shop

Details Amount (Rs)

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Cooking Utensils 4,000

Furniture 5,000

Sign Board 1,000

Shop Furnishing 14,000

Total 24,000

She enquired how long these items would last, and the shopkeepers told
her that these utensils, furniture and other items would last for at least two
years.
Sangita also arrived at the following recurring costs that she would have to
incur for running the shop.
Cost

Details Amount (Rs.)

PAGE 143

Salary 2000

Rent 3500

Interest 500
 Cooking Gas Re 0.5 per plate

Raw material Rs. 10 per plate

PAGE 144

Disposable plates etc. Rs. 3 per plate

Electricity 1000
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Cleaning & Maint. 1500

Source: Dhriiti Entrepreneurship Curriculum:

4. Sangita had learnt about fixed and variable costs in her training
programme. But despite having all figures at hand, she was unable to
classify them for herself. Ask the class, “Can you help Sangita classify
the costs into fixed and variable costs?” Go over the solution on a board
or chart sheet as follows:

Fixed Costs per month Amount (Rs.)

Salary 2000

Rent 3500

Interest on loan taken to buy these 500

Electricity 1000

Cleaning & Maint. 1500

Monthly cost of utensils, furniture, etc 1,000

(total cost divided by 24 months)

Total per month 9,500

Variable Cost

Variable Costs

Details Amount (Rs.)

Cooking Gas Re 0.5 per plate

Raw material Rs. 10 per plate

Disposable plates etc. Rs. 3 per plate

Total 13.5

5. Now, distribute the “Cost of running my business” handout to your

class. Ask the participants to list the costs they envision in running their
business and classify these costs as fixed and variable costs. Give them
25 minutes to complete their exercise.
 Hand out 3
COST OF RUNNING MY BUSINESS

Fixed Cost Cost Per Month Variable Cost Cost Per unit

Total

6. Ask participants to come one by one and present cost items in their
business. Give opportunity to as many participants as possible to
present the cost items in business. End the session by telling the Ask
the participants to suggest three more business for which they would
want to discuss the cost of doing business. Work out the costs along
with them.

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Facilitators’ Note

Æ Read up materials discussing “Cost of doing Business” on the net and

download as many caselets as possible. Websites like Livelihood
school and http://aksharakriti.org will prove to be helpful.
Æ Make sure you discuss the “cost of doing business” that is relevant for
your target group. This may include businesses like running a Beauty
Parlour, Pani-Puri stall, sweet shops, Retail stores etc. Discuss as many
examples as possible till your students are not only able to identify but
classify these costs. the class. Give the trainees enough time work out
their cost of doing business.
Æ Encourage participants to review each other’s business idea with costing
and share feedback. Ask the participants to submit their business ideas
as they leave the class and tell them that you would review these ideas
PAGE 145

and hold discussions with them on these. Follow up in the next class.

7. Tell the class, “Let us take one more caselet and try and understand
this business model run over 4 years”. Discuss the case with them.
 Handout 4
SEWING CENTRE
PAGE 146

Ms. S. Nirmala, age 38 years of Budvel village, has a family of four which
includes two children. Her husband is a daily wage labour earning around
Rs. 150/day. Four years ago, her husband earned Rs. 100/day as a wage
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labourer and it was not sufficient to fulfil the needs of the family. Nirmala
knew sewing but lack of money for initial investment prevented her from
starting this enterprise.
Then she took loan of Rs. 25000 from SPANDANA Sphoorty Financial
Limited to begin her business. She purchased two sewing machines. She
also bought cloth from the wholesale market and now stitches dresses on
demand. Her first earning was Rs. 150/- for stitching a salwar kameez for a
client.
As time passed, she repaid her loan and got another loan for expanding
her business. She increased the number of machines to five and hired four
women whom she employed to work on the rest of the machines. She pays
them Rs. 125/- per day and now her net earnings are about Rs. 8,000/-
month.
Nirmala is happy now that she and her family have stable sources of
income and eat more nutritious food. Receiving microcredit at the time of
requirement changed her life. Today, she is able to provide quality education
to her children, has a cooler, a color TV and a refrigerator. Besides, Nirmala
also has taken insurance.
 Year 1st-year 2nd-year 3nd-year 4th-year

Amount taken
from microfinance Rs. 25,000 Rs. 25,000 Rs. 25,000 Rs. 25,000
institution

Interest Rs.6250 Rs.6250 Rs.6250 Rs.6250

Repay in 1 year 1 year 1 year 1 year

No. of sewing
2 3 4 5
machines

Fixed cost:
Rs. 14000 Rs.21000 Rs.28000
Machine cost Iron Rs.35000
Rs. 1000 Rs. 1500
cost

Variable cost:
Raw material Rs. 5000 Rs. 7500 Rs. 10000 Rs. 10000
cost (monthly) Rs. 3000 Rs.3000 Rs.6000 Rs.9000
Salary( worker) Rs. 1000 Rs. 1000 Rs. 1500 Rs.2000
Miscellaneous

Income for month Rs. 12500 Rs. 16000 Rs. 23500 Rs.29000

Saving after all

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expenditure Rs.3500 Rs. 4500 Rs. 6000 Rs.8000
(monthly)

Repay loan per

Rs. 520 Rs. 520 Rs. 520 Rs. 520
month

Saving per month Rs. 2980 Rs. 3980 Rs.5580 Rs.7480

Saving per annum Rs. 35760 Rs.47760 Rs. 66960 Rs. 66960

PAGE 147
 Session 4
PAGE 148

Break-even Analysis (IIE)

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90

80

70
PROFIT
60

50

40 VARIABLE COST

30 LOSS FiXED COST

20

10

10 20 30 40 50 60 70 80 90
total units

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Classroom Handout, paper, and pen 1 hours

activity, Group
discussion

Aim of the Session

To help participants understand the concept of breaking even.

Session Objective
To provide appropriate skills to the participants to be able to
calculate the breakeven point for their business
 Expected Outcomes
That participants are able to align their sales strategies to reach the break-
even point for their businesses

Break-even Point
The Break-even Point is, in general, the point at which gains (revenue) equal losses
(costs). It is thus the point that defines when an investment will generate a positive
return. The point where total sales or revenue equal total expenses. No profit is made
at the break-even point. Also, no loss is incurred at the break-even point. It is the lowest
limit of profit from which prices must be set, and margins determined. Anything earned
above the break-even point is a profit and anything spent under the break-even point
is a loss.
In other words, the break-even point is simply the point at which what a business earns
is equal to the expenditures it has incurred in setting up and operating the business.
This data is infinitely valuable as it sets the framework for decisions regarding pricing
of products and services, scale of operations, hiring, retention and/or laying off, of
employees and assessing the need for obtaining future financial support.
Without a break-even point, there is no way to understand how much to sell to become
profitable. Similarly, there is no way to understand whether cost-cutting is needed. No

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one goes into business to offer products at a loss, so even before you sell a single thing,
you must learn to calculate and analyse your break-even point.
As a business owner you should know the total contribution each of your products or
services offered makes to the company's overall profit. This step is important because
it can help determine the products and services that aren't actually profitable. You may
decide if they need a change towards a more profitable pricing structure, a reduction in
cost, or you may even decide to discontinue them.

Importance of break-even Point

Æ The break-even point brings out the dynamic relationship between
total cost of producing and selling a product or a service versus the
sale volume of a company
Æ It is used to determine when a business will be able to cover all its
expenses and begin to make a profit.
Æ It is an indicator talking about the operating condition of a company
PAGE 149

when it ‘breaks-even’, that is when sales reach a point equal to all

expenses incurred in attaining that level of sales.
Æ It aids in decision-making (e.g., whether to self-produce a product or
procure it, whether to introduce a new line of product or modify it, etc.),
forecasting and long-term planning to maintain profitability.
 Æ It helps the entrepreneur take effective decisions when faced with changes
in government policies vis-a-vis taxation and/or subsidies.
PAGE 150

As an entrepreneur you must strive to find answers to questions such as,

Æ How much should I produce in a year so that after covering all my costs, I can
still make some profit?
Æ If I plan to install machinery that can produce, for example, 100 tons of the
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product per year, what would happen if I can sell only for 60/70 tons?
Æ What should be my minimum production level so that I can at least meet all
the liabilities without incurring a loss? and so on.
The first and most important time you ask these questions and plan for reasonable
profits in a systematic manner is at the time of establishing your unit. You may ask
it again when you make plans for expansion or find a need to down-size.
The answer to these questions lies in the calculation of the break-even, often
represented in the form of a graph.

Understanding Cost
Whatever business you choose to do, be it production of goods through setting
up a factory, or services rendered by setting up an automobile workshop, or a
small hotel or a repair shop, certain costs will always be involved. These costs
may come in the form of raw material, salaries/wages, interest charges on money
borrowed for setting up the business, water, and electricity, etc. All these items of
cost put together form the total cost.
As we saw in earlier sessions, cost can be divided into 2 components, namely, (i)
Fixed Cost and (ii) Variable Cost.
Fixed Cost:
Fixed Cost is that cost which does not vary or change with other factors as
production goes up or down. It includes items of cost, such as, interest on ‘long term
loan’, rent on factory, shed, or office if they are rented, depreciation on machinery
and building if they are owned, etc., which are to be incurred irrespective of your
factory is working at full capacity or not at all!
For example, if you have borrowed ₹1 lac from a bank or State Finance Corporation
for buying machinery for your factory to produce 100 tons of a product per year
(Product A) and the interest rate on the loan is 12.5%, you will have to pay ₹12,500/-
as interest per year irrespective of whether your production stands at 100 tons or
60 tons or 15 tons or absolutely nothing!.
Just to make sure that you have understood the concept of fixed cost, let us
go through another illustration. Your factory building it rented and the rent per
month is ₹1,000/-. The production on monthly basis is 500 units in January, 800 in
February and 600 in March.
Determine the fixed cost for your factory as such for the months of January,
February, and March.
Likewise, determine the fixed cost per unit of the output in these months?
The fixed cost for the factory unit as such, assuming that there are no other costs,
would be ₹1000 per month for each of these 3 months. The fixed cost per unit of
the output can be obtained by dividing the fixed cost for a month by the number
of units produced / to be produced in that month, as noted below:

Month Fixed Cost No. of Units Unit Fixed Cost

January 1000 500 2

February 1000 800 1.25

March 1000 600 1.66

An interesting point to note here is that even though the total fixed cost for the
factory as such remains constant (i.e. ₹1000/-per month), there is an increase in
fixed cost per unit of the output when production decreases and likewise, there is
a decrease in the fixed cost per unit when production increases.

Variable Costs:
Variable Cost is variable with the level of production, i.e., variable cost is directly
related to the quantity being produced. For example, if you need ₹100/-worth of
raw-materials to produce 1 ton of Product A, the variable cost can be calculated
as below:
Let us assume that raw-material cost per ton of output i.e. Variable Cost per ton =

MODULE I: SELF ANALYSIS AND SELF REFLECTION

₹100. Then,

Month Output (Kg) Variable Cost (₹)

January 500 50000

February 800 80000

March 600 60000

It can be seen from the above illustration that the total variable cost for your Factory
increases/decreases along with the increase/decrease in the level of production.

In short, any item of cost which does not change with the level of production is
‘fixed cost’ and any item of cost which changes with the level of production is
‘variable cost’.
Note here that Fixed cost is fixed for your factory as such. But fixed cost per unit of
output varies (is inversely proportional) with the change in the level of production.
Similarly, while the Variable cost for the factory as such is variable and depends
PAGE 151

directly on the level of production, variable cost per unit of output remains
constant.
When we begin to classify various items of cost into fixed and variable costs, we
will find certain items of costs such as, wages which remain fixed till we reach a
 particular level of production but vary whenever that level is crossed. In other
words, there are certain items of cost which can be termed as ‘semi-variable’.
PAGE 152

But for operational convenience, it is sufficient if we can classify our costs into
Fixed and Variable at this stage.

Break-even Analysis
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Whenever you calculate profit for your project at the time of preparing project
reports or making projections for the coming year (once your unit is already in
operation), you normally deduct Total Cost from Total Sales/ Revenue to arrive
at Gross profit.
Here we go a step further and calculate profit at two stages by splitting the
Total Cost into Fixed Cost and Variable Cost.
We know that Variable Cost per unit of the output remains the same. Hence,
given the same selling price, the difference between Variable Cost per unit and
selling price per unit also remains the same.
Let this difference be called “Contribution”. Thus, as sales go up, the ‘contribution’
[(difference between Sales Revenue per unit and Variable Cost per unit) x (No.
of units)] also goes up.
Given the fact that the Fixed Cost for the project remains the same, you have to
at least earn enough money to meet the Fixed Cost.
In other words, if you do not want to incur loss, you must sell enough number of
units of the output so that the ‘contribution’ is equal to the Fixed Cost. Your profit
would be determined by how much your ‘contribution’ exceeds your Fixed Cost.
Such a 2-stage analysis to identify the production level (that is, how much to
produce) at which you make neither a profit nor loss is called break–even analysis.
The said production level is called the break–even point.

Remember:
Total Cost at ‘X’ production = Variable Cost
|for ‘X’ No. of units (VC) + Fixed Cost
Contribution (CN) = Sales Revenue (SR) – Variable Cost (VC)
Profit (P) at ‘X’ level of production = (Sales Revenue for ‘X’ No. of Units) – Total
Cost
or
SR – (VC +FC) or SR – VC –FC
or
Profit = Contribution (SR-VC) – Fixed Cost (FC)
To clarify the concept, let us now look at the illustration mentioned below. These
calculations have been done at 3 different production levels to illustrate the
relation between the level of production and profit.
Selling Price per unit - 10.00
Variable Cost per unit - 4.00
Fixed Cost for the Project - 90,000.00

Production Level 10000 Units 15000 Units 20000 Units

Sales Revenue (units 100000 150000 200000

x SP per unit)

Variable Cost (units x 40000 60000 80000

VC per unit)

Income or 60000 90000 120000

Contribution

Fixed Cost 90,000 90,000 90,000

Profit/Loss (-) 30,000 0 (+) 30,000

The Income or ‘Contribution’ calculated is not profit since we still have to account
for the Fixed Costs in our business. Considering that the Fixed Cost in this example

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is ₹90,000/-

Æ At 10,000 units production level, the company is incurring a net loss of

₹30,000/- (₹60, 000 – ₹90,000)
Æ At 15,000 units production level, there is no profit or loss (₹90,000 – 90,000),
and
Æ At 20,000 units production level, a net profit of ₹30,000/- (₹1, 20,000 – ₹90,000)
is made.
Thus, at 15, 000 unit’s of product being produced, the company is just “breaking
even” and so, the production level of 15,000 units will be called the company’s
break–even point (BEP), all other things remaining the same.

Contribution = Fixed Cost i.e. CN = FC at break-even point.

The BEP may be expressed either in terms of number of units that you have to
produce to reach ‘No profit – No Loss Level’ or in terms of sales revenue obtained.
PAGE 153

i) Capacity Utilization Indicator:

Break-even point is often expressed in terms of capacity utilization. Let us
illustrate:
Suppose your factory can produce a maximum of 100 tons of products
per year, which is its “installed capacity” – at what percentage of installed
 capacity you must operate to reach the break-even level of production?
This can be found using formula given below:
PAGE 154

BEP = FC/(SR-VC) X 100 = ------------------- %

where,
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BEP = Break-even Production Level in terms of percentage.

FC = Fixed Cost per year in Rupees
VC = Variable Cost during that year
SR = Sales Revenue during that year
ii) Sales Revenue Indicator:
Break-even Point can also be expressed in terms of Sales Revenue. This can
be calculated using just two figures viz., Fixed Cost and ‘Profit Volume Ratio’.
One of the most important ratios to watch in businesses, especially in
Break-even Analysis is the ‘Profit Volume Ratio (P/V Ratio)’. It expresses the
relationship between ‘contribution’ (Sales Revenue – Variable Cost) and Sales.
It indicates the percentage of ‘contribution’ in relation to the volume of sales.
In other words, it tells you that after meeting Variable Cost, what percentage
of sales revenue is available to you to meet fixed cost and thereafter, earn
profits.
To calculate Break-even in terms of Sales Revenue we use the formula given
below:

B.E. Sales Revenue = Fixed Cost = FC P/V Ratio (SR –VC)/SR

Application of Break-even Analysis:

So far, we have understood the concepts of BEP and calculation involved in
Break-even Analysis (BEA). We now see how we can use this concept for decision
making:
i) BEA helps in making decisions regarding investment. Projects with high
break-even production levels tend to be risky. This is because when the Fixed
Costs are high the project becomes vulnerable to even slight drops in sales
revenue be it due to a low selling price or low sales volume. In simple words,
when you invest a lot at the very beginning of your business, you will need to
sell more or at greater prices to be able to recover that cost and every fall in
sales will push your BEP further away.
ii) BEA helps in determining how much to produce or plan to produce to optimize
profit.
iii) In case you have a multi–product unit or even a single product unit and
you need to increase your production to meet demand, BEA can help
you in ‘make or buy’ decisions, i.e. whether you should increase the
production in your factory by employing more resources or should
you sub-contract the work or buy the product from someone else
and sell it.
iv) BEA is a convenient tool that helps in evaluating the pricing for a product. It
helps in deciding the ex-factory price of the product. It also helps in deciding
whether any discount on bulk purchase should be allowed and if so, how
much should this discount be. Likewise, we can decide on what price to
quote when participating in a big tender.

Cash Flow
Cash flow is the net amount of cash and cash-equivalents being transferred into
and out of a business.
Assessing the amounts, timing and uncertainty of cash flows is one of the most
basic objectives of financial reporting. Understanding the cash flow statement –
which reports ‘operating cash flow’, ‘investing cash flow’ and ‘financing cash flow’
— is essential for assessing a company’s liquidity, flexibility, and overall financial
performance.
Positive cash flow indicates that a company's liquid assets are increasing,
enabling it to settle debts, reinvest in its business, return money to shareholders,

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pay expenses, and provide a buffer against future financial challenges

Facilitators’ Note

Discuss:
What are the key take away from this chapter?
Explain with example, how does break-even analysis help in enterprise planning?

Conclusion
The main advantage of break-even analysis is that it explains the relationship
between cost, production volume and returns. It can be extended to illustrate
how changes in the fixed cost-variable cost relationship for a business, be it in
PAGE 155

commodity prices, or in revenues, affect the profit levels of that business.

Break-even analysis is most useful when used with partial budgeting or capital
budgeting techniques. The major benefit to using break-even analysis is that it
indicates the lowest amount of business activity necessary to prevent losses.
 Session 5
PAGE 156

Accounts and Bookkeeping

(Aleap)
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O DOLO ALS REQ RATION

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Lecture Paper & Pen 1 hours

Aim of the Session

This lesson aims to keep track of each transaction and determine
the effect of each transaction in monitoring business growth.

Session Objective
Æ To make participants understand the need for Accounts and
bookkeeping
Æ To narrate the purposes involved in bookkeeping and accounts
Æ To help build on the participant’s understanding of costs and pricing
help them learn basic calculations for a smooth and sustainable running
of their business.
Æ To help participants build a basic costing and pricing structures for
their businesses.
Æ calculate the breakeven point for their business

Expected Outcomes
That participants are able to calculate the break-even point and
understand how they can effectively run their business without incurring
losses.

Accounting
The chief of a world-renowned bank was once asked, “If you were to give
only one advice to industrialists and businesses across the board, what
would it be?” His reply was, “The person who is setting up any industry or
business, should form a system of maintaining books of accounts from the
beginning. If they cannot afford the cost of forming such a system, they

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should not start a business.”
Most people fail to realise the benefits of maintaining systematic and
regular accounts. Inadequate system of maintaining accounts is one of the
important reasons of failure in newly set-up business units.
Accounts can be defined as the ‘mirror’ of trade or industry. Accounts reflect
the economic condition of any business or industry.
Bookkeeping is the art of recording business transaction in a set of books in
a regular and systematic manner.
Accounting is the art of recording, classifying, and summarizing everyday
transactions of a business.

Why accounting?
Maintenance of accounts effectively helps in:
Æ Deriving at the cost of the product.
PAGE 157

Æ Calculating the rate of return from the business.

Æ Ascertaining whether a business is making a profit or loss.
Æ Getting information regarding amounts payable to others, as well as
the amounts receivable from others.
 Æ Determining whether income or expenditure have increased or
decreased in comparison to previous years (this may even help control
unnecessary expenditure).
PAGE 158

Æ Readily obtaining figures and types of investment done.

Æ Ascertaining the financial position of the business and planning ahead.
Æ Meeting the requirements of various statutes such as income tax, sales
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tax, excise duty and labour legislations.

Æ Getting a comparative picture of your business in relation to other
similar business.

Difference between Bookkeeping and Accounting:

Bookkeeping is a primary stage in accounting. It includes only the ‘recording’
function. ‘Accountancy’ or ’Accounting’ is a very broad term which includes
summarizing, analysing, and interpreting the figures recorded.
Some steps an entrepreneur must take to derive advantages from the
process of accounting are:
a) Design a good accounting system for your business with the help of a
specialist (an expert in the field or a trained person should be employed).
c) Record every transaction regularly.
d) Supervise accounting records periodically.
Keeping accounts is a discipline the entrepreneur must inculcate.
The following methods are commonly used in India for maintaining accounts:
1) Deshi Nama System (traditional system in which accounts can be
written in all regional languages).
2) Double Entry bookkeeping.
In many businesses many of the transactions are done in cash. This basically
means that at the end of each transaction, money is exchanged between
two parties. Please note here that not all transactions may be done in cash
and a businessperson may be able to leverage some credit as well.

Books required to be maintained in Business

1. Cash Book with Bank Column
2. Ledger
3. Purchase Register
4. Sales Register
5. Journal Proper
6. Salary Register
7. Stock Register
8. Dead Stock Register
 Stationery for Accounts
1. Receipt Book.
2. Cash Memo Book
3. Bill Book
4. Voucher Book
5. Delivery Challan Book

Format of a Cash Register

1 2 3 4 5 6
Date Description Ref.No.(vouchers Cash Received Cash paid Cash Balance
& Bills) (in INR) (in INR) (in INR )

Where:

1 Is the date on which the transaction is filled.

2 Is the source from where the money has come in or gone out.
3 Is the bill or voucher number of the transaction mentioned in the
previous column i.e., column number 2.

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4 Is the amount of the transaction is to be filled in, if the transaction
happened is an inflow transaction, where the enterprise receives an
amount of money.
5 Is the amount of the transaction is to be filled in, if the transaction
happened is an outflow transaction, where an amount of money goes
out of the enterprise.
6 Is the amount of the transaction is to be filled in, if there is a balance
amount remaining.

ACTIVITY 1 : MAINTAINING FINANCIAL RECORDS

Ask the class to complete the following activity. Mentioned below is a list of
transactions.
Mark the name and/or number of the column they belong to in the cash
register (as shown above).
PAGE 159

1. Buying raw material

2. Rent Paid
3. Sales of goods
4. Interest Received from money deposited in the bank
 5. Advertising cost for 1000 pamphlets
6. Rs. 1,00,000 received from sale from assets
PAGE 160

7. Salaries of Rs. 75,000 paid to employees:

Conclusion
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Maintaining accurate accounting records is not only a legal requirement,

but also essential to determine the sustainability of your business. Accurate
bookkeeping will enable you to make more informed decisions on
expenditure, investments and in controlling your cash flow.
 Session 6
Operations Management

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O DOLO ALS REQ RATION
TH RI DU
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Lecture, Group Handouts, paper, 3 hours

discussion, and pen
Case studies

Aim of the Session

To make the participants understand the concept of operations
management, its importance, and role in an organization for better
efficiency and profitability.
PAGE 161

Session Objective
Æ To help participants understand, with the help of case studies
and examples, that a good operations plan is a prerequisite for
the success of any particular business.
 Æ To help participants understand that the prime objective of operations
management should be (a) to utilize the resources of the organization
optimally and effectively, and (b) to create such products or services
PAGE 162

that satisfy the needs of the consumers, by providing the “right thing at
the right price, place and time”.
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Expected Outcome
By the end of the session the participants will be able to:
Æ Draft an Operations Management plan
Æ Would be thoroughly acquainted with Operations Management, its
structure, and components

What is Operations Management?

Any organization has two kinds of structures – its organizational structure
and its operational structure. While the “organizational structure” refers to
hierarchy in your business structure, “operational structure” refers to how
you get things done. For operations to be effective, however, you must
have the right organizational structure. This requires that you analyse the
operational needs of your business, function-by-function, department-by-
department and create an organization that helps your employees work
together efficiently. For example, if your sales people need your accounting
department to conduct credit checks, you might specify who has the
authority to ask for a credit check and who performs the credit checks.
From an operational standpoint, you establish how to submit credit-check
requests, the turnaround time for the accounting department to respond,
and the approval or denial notification processes.
Maintaining a steady workflow, whether for producing your product or
administration, requires operational procedures. This is best achieved
by writing an ‘operations manual’ with guidelines for each activity of your
employees. For example, your operational procedures for making your
product must cover ordering materials and supplies, scheduling labour, and
maintaining all equipment. All these tasks are necessary for your business to
run smoothly and make a profit, and everyone involved in your production
process should understand their duties and how they are a part of the
process.

Key Points
Æ The goal of operations management is to maximize efficiency while
producing goods and services that effectively fulfil customers’ needs.
Æ Operations is one of the three strategic functions of any organization.
Æ Operations decisions include decisions that are strategic in nature,
meaning that they have long-term consequences and often involve a
great deal of expense and resource commitments.

Key Terms

Strategy: A plan of action intended to accomplish a specific goal.

Tactic: A manoeuvre or action calculated to achieve some end.
Operations management: Management of processes that transform inputs
into goods and services that add value for the customer.

Strategic Versus Tactical Operations Decisions

Operations decisions include decisions that are strategic in nature,
meaning that they have long-term consequences and often involve a great
deal of expense and resource commitments.
Strategic operations decisions include the:
Æ Facility location decisions
Æ The type of technologies that the organization will use
Æ Determining how labour and equipment are organized
Æ How much long-term capacity the organization will provide to meet

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customer demand.

Tactical operations decisions have short to medium term impact on

the organization, often involve less commitment of resources, and can
be changed more easily than strategic decisions. The following are some
tactical decisions:
Æ Workforce scheduling
Æ Establishing quality assurance procedures
Æ Contracting with vendors
Æ Managing inventory

Strategic and tactical operations decisions determine how well an

organization can accomplish its goals. They also provide opportunities for
the organization to achieve unique competitive advantages that attract and
keep customers.
For example, United Parcel Service (UPS), an international package delivery
service, formed a partnership with its customer, Toshiba computers. Toshiba
PAGE 163

needs to provide a repair service to its laptop computer customers. The old
approach of providing this service was cumbersome and time-consuming:
1. UPS picked up the customer computers.
2. UPS delivered the computers to Toshiba.
 3. Toshiba repaired the computers.
4. UPS picked up the repaired computers and delivered them back to the
PAGE 164

customers.
Under this traditional approach, the total time to get a laptop computer repaired
was two weeks—a long time for people to be without their laptop! Then they
came up with an innovative idea for Toshiba to provide better service to its
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customers.
UPS hired, trained, and certified its own employees to repair Toshiba laptop
computers. The new repair process is far more efficient:
1. UPS picks up Toshiba computers from customers.
2. UPS repairs the computers.
3. UPS delivers the computers back to their customers.

The total time to get a computer repaired is

now about two days.
Most Toshiba customers think that
Toshiba is doing a great job of
repairing their computers, when,
in fact, Toshiba never touches
the computers! The result of this
operations innovation is better
service to Toshiba customers
and a strong and profitable
strategic partnership between
UPS and its customer, Toshiba.

Role of Operations Management in an Organization

Operations is one of the three strategic functions in any organization. This
means that it is a vital part of accomplishing the organization’s goals and
ensuring its long-term survival. The other two areas of strategic importance to
the organization are marketing and finance.
The operations strategy should support the overall organizational strategy. Many
companies prepare a 5-year pro-forma to assist in their operations planning. The
pro-forma uses information from past and current financial statements, in an
effort to forecast future events such as sales and need for capital investments.
Countless operating decisions, both long- and short-term, impact the
organization’s ability to produce goods and services in a seamless manner.
Good operating decisions greatly increase the chances of a firm surviving and
making a profit in the long-term.
Taking an example, if an organization makes furniture, some of the operations
management decisions would involve:
Æ purchasing wood and fabric
Æ Hiring and training workers
Æ location and layout of the factory floor
Æ Purchase cutting tools and other fabrication equipment
If the organization makes good operations decisions, it will be able to
produce affordable, functional, and attractive furniture that customers will
purchase at a price that will earn profits for the company.

Functions of Operations Management

The main functions of operations management can be divided into 6 parts
for any enterprise:
1. Planning
2. Scheduling
3. Purchasing
4. Controlling
5. Quality control, and
6. Inventory control

A good operational plan

A good operational plan has:

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Æ Clear objectives
Æ Staffing and resource (including budget) requirements
Æ Lists of activities to be delivered, and by whom
Æ Implementation timetables
Æ Quality standards to be kept in mind
Æ Key targets and key performance indicators
Æ Risk management plans
Æ A process for monitoring progress
Æ Clear objectives
Æ Staffing and resource (including budget) requirements
Æ Lists of activities to be delivered, and by whom
Æ Implementation timetables
Æ Quality standards to be kept in mind
Æ Key targets and key performance indicators
PAGE 165

Æ Risk management plans

Æ A process for monitoring progress

Some examples of how an operational structure of an organization is

made have been given in the following pages.
 MODULE I: SELF ANALYSIS AND SELF REFLECTION PAGE 166

Example 1 – Procurement & Acquisitions (Strategic Sourcing process and tool portfolio)

Procurement & Acquisitions Sourcing Process & Tools Strategic Sourcing Process and Tool Portfolio

OPPORTUNITY and PROJECTand TEAM DATA GATHERING and STRATEGY IMPLEMENTATION SUPPLIER MANAGEMENT
VALUE ANALYSIS FORMATION ANALYSIS DEVELOPMENT and Æ Request for Proposal Æ Supplier Management
Æ Voice of the Æ STP-Situation Æ Internal: APPROVAL (RFX and e-RFx) Æ Supplier Performance
Customer Target-Proposal Æ Business Æ Analyses Tools Æ Negotiation Planning Reviews
Æ Business Æ Team Charter Requirements Æ Portfolio Æ Negotiation Æ Supplier Improvement
Requirements Æ Team Formation & Prioritization/ Æ Price Model Approaches Æ Supply Management
Æ Opportunity Analysis Weighting
Æ Brainstorming Æ Current State Æ Implementation Æ Inventory Analysis
Æ Spend Analysis Æ Business Planning
Æ Breakthrough Æ Supplier Perspective Æ Demand Analysis
Requirements
Æ Communication Plan Thinking Æ Feature-Based Price Æ Project Plan Supplier
Complexity Æ Risk Analysis,
Æ Spend Æ Stakeholder Measurement - Key
Æ Category Spend Æ Purchase Price Cost Mitigation and
Segmentation Mapping Performance Indicator
Profile Æ Total Cost of Management
(KPI) Review and
Æ Market Æ Relationship Æ Quick Wins Ownership Management Æ FMEA
Differentiation Mapping
Analysis
Æ Price Model Æ Process Mapping Æ Specification
Æ Roles and Management
Æ Value Analysis Responsibilities
Æ Market Differentiation Æ Tendering Approaches
Æ Value and Supply Æ Contract Service Level Æ Continuous
Æ Return-on Æ Communication Plan Improvement
Chain Agreement
Investment (ROI) Æ Action Planning
Analysis and Work Æ Make versus Buy
Æ Project/Macro Plan
Stream Prioritization Æ Risk and Vulnerability
Æ Governance
Æ Spend Plan Æ PEST
Implementation
Æ SWOT Porter's Five
Forces
Æ Channel Management
Æ Functional Price
Æ Other:
Æ Pre-sourcing and
Technology Road Map
Æ Source Plan
 Example 2 – Six months roadmap for building a
integrated sustainability strategy for business

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Talk and Assess and Commit and Measure and Educate and Add Text
Engage Priorities Collaborate Report Communicate Here

Make a business Signify focus areas Create night Find the right Be straightforward Add Text Here
case to guarantee based around partnerships with metrics to assess with purchasers Add Text Here
partner and the explicit markets key stakeholders progress about
board buy in and worth chain supportability
Add text here Add text here
progress
Add text here Add text here
Add Text Here

Example 3 – Quarterly roadmap to start a

business with vision and product

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Q1 Q2 Q3 Q4

Outine Product
Review Objectives Add Text Here
Vision & Audience

Define Value Propositions

Evite
Anale Custom Breeding & Evaluate Credit
Product Marketersche
Senses Postioning doly Caps
Rens

Evaluate current
Marketing Review Business
facilities & required Add Text Here
Activities Performance
investments

Design Bud & Test

Design & Launch Add Tea
Testing Marketing
Execution Campaigns Here
Plan Channels
PAGE 167

Review
I one comm Ads Text Here
Success
Optimization
Add Text
Here
 Example 4 – 5 years business future
sustainability and mission roadmap
PAGE 168

2017 2018 2019 2020 2021

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Current state Identity Analysis of Process Roadmap

analysis business pronties user base analysis brainstorming

• Current • Primary • Mapping of • Governance of • Analytics vision

reporting process drivers end users &use BI initiatives • Functional
• Current pain • Business cases • Bl organization & technical
points questions • Type of • Current best roadmap
• Business • Insight to analysis and practice and • Use cases
intelligence drive Business reporting guidelines prioritization
tools adoption decisions • User • Bl self-service • Desired state
• Data quality • Identity and expectation discussion
analytics • Add ted here
issues listuse cases • Add text here
• Reporting • Add text here • Key data
backlog gathering
techniques
• Add text here
• Add text here

Why is Operation Management important?

Operations management is crucial in running a successful business. It
helps students understand how they may effectively manage, control
and supervise ‘operations’, that is, all activities and people involved in the
production of goods, and services they offer. Operations management cuts
across every sector and industry and is widely used irrespective of the size
of a company or what they do.
For example: Assume you are a plastic manufacturer and supply various
companies with packaging. You’ve just brought a new client on board and
they’re looking to launch their goods within a month or so. You have to
organise the production, its quality, and timely delivery.
Where do you start?
The job of your operations manager (or your operations plan) is to ensure
that the correct budget is allocated to the task, the right people are on the
job, and to make sure that everyone involved is aware of the roles they play.
This will help to ensure that the client’s deadline is met, and costs remain
within budget to ensure profit.
But what happens if there is no operation alignment? Suppose you hire more
than required workers to do the job or buy extra raw material – you incur a
loss by exceeding the cost budget. Suppose you are unable to align your
staff to the requirements of the job and deadlines, you may not be able
to deliver in a timely manner, losing on both money and reputation!
So, as an entrepreneur, it is important that you understand the processes
in your business and know the importance of operations management
and how to structure it.
Effective operation management also helps with employee engagement
and in defining the roles and responsibilities within an organisation.
No matter what obstacle an organisation faces, a strategic operations
management plan will ensure that the employees’ workflow and the
company’s production remain unaffected.

ACTIVITY 1 : MY COMPANY MY PLAN

Material Required
Handout with template,
paper, and pen.

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Activity Objective
To encourage participants to prepare operational plans in groups as a
classroom activity, keeping in mind the pointers given in the template.
They will then let other groups analyse their plan and question them,
learning from each-other’s experiences.

Process
1. Divide the class into 4 groups.
2. Ask them to draft an Operations Plan:
Ask the participants to think of themselves as the Owner/Director/
MD/CEO of an organization. They have to make an operational
structure for either of the two situations given below
T Quarterly roadmap to start a business with vision and product.
T Six months roadmap for building an integrated sustainability
PAGE 169

strategy for the business.

Ask them to choose the template of their choice from the ones
given below to develop the plan.
 Quarterly roadmap to start a
business with vision and product
PAGE 170

Q1 Q2 Q3 Q4

Outine Product
Review Objectives Add Text Here
Vision & Audience
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Define Value Propositions

Evite
Anale Custom Breeding & Evaluate Credit
Product Marketersche
Senses Postioning doly Caps
Rens

Evaluate current
Marketing Review Business
facilities & required Add Text Here
Activities Performance
investments

Design Bud & Test

Design & Launch Add Tea
Testing Marketing
Execution Campaigns Here
Plan Channels

Review
I one comm Ads Text Here
Success
Optimization
Add Text
Here

Six months roadmap for building a

integrated sustainability strategy for business

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Talk and Assess and Commit and Measure and Educate and Add Text
Engage Priorities Collaborate Report Communicate Here

Make a business Signify focus areas Create night Find the right Be straightforward Add Text Here
case to guarantee based around partnerships with metrics to assess with purchasers Add Text Here
partner and the explicit markets key stakeholders progress about
board buy in and worth chain supportability
Add text here Add text here
progress
Add text here Add text here
Add Text Here
3. Assess the Plan: After developing the plan, ask all groups to elaborate
on their plan in front of the class. You may give your inputs to improve
their plan.
Assessing an operational plan implies analysing the plan to see how
well it may perform. A well-developed operational plan would follow
a logical thought process, articulate the strengths and weaknesses of
processes and people involved, and showcase the long sightedness of
those creating it.
Other group of students may analyse and ask question to the presenting
group according to the template chosen by them. Ensure that all
groups fill all sections of the template and explain each component
while presenting their plan.

Facilitators’ Note

This is a group task, ensure participation and inclusion of all students.

Ensure that they have kept all the factors given in the templates in mind,
both while making their own plans and while assessing other’s plan.
After the end of the activity tell the class that an operational structure is a
vital section in making business plans and that they should ideally be vetted

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by a qualified agency or individual before being executed.
A qualified agency or individual is someone who has the knowledge to
analyse all the facts and figures of the business to understand its profitability.
Such agencies or individuals may include:
Æ Business Analysts
Æ Charted Accountants
Æ Banks
Æ Entrepreneurship Development Institutions

Facilitators’ Note

Given below are some case studies for you to discuss in your class. Each
case study highlights certain points about operations management, go
over these one by one with your class to better than understanding of the
PAGE 171

concept.
 Handout 1 – Case Study
PAGE 172

THE MUMBAI DABBAWALLA STORY – A SUCCESS STORY

This famous case of operations and supply chain management is used by

Harvard and many other business schools in India and abroad.
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Their model has earned them admirers from Britain’s Prince Charles to
entrepreneur Richard Branson. In 1998, Forbes Global magazine, conducted
a quality assurance study on operations of the Mumbai dabbawallas and
gave them a six-sigma efficiency rating of 99.999999. This means that their
error ratio is 1 in 16 million i.e., 1 mistake in 1,60,00,000 tiffins delivered! Mumbai
Dabbawallas are also ISO 9001:2000 certified by the Joint Accreditation
System of Australia and New Zealand.
An overview
This battalion has been serving the people of Mumbai for more than 125
years. With an impressive style of work management and dauntless work
ethics they supply launch boxes for almost 2 lakhs working professionals in
one of the busiest cities in India – Mumbai.
The journey started way back in 1890 when Shri Mahadu Havaji Bachhe
started to pick and drop the tiffin box for a parse banker. He saw the business
and service opportunity of tiffin service in the locality. He started the lunch
delivery service with one man, one customer, and one dabba and increased
it to a 100 dabbas.
Today, the Golden statue of a Mumbai dabbawalla at Haji Ali station will
make you to stand still and think about all your management lessons.
The system
The Mumbai Dabbawallas follow a system for providing Tiffin services to
lakhs of offices in Mumbai.
The tour of accuracy and time management starts from the pickup point
or residence of the customer sharp at 9.30 a.m. every day. In next step,
they bring the boxes to the nearest common location where the tiffins are
shuffled according to travel route and destination stations. Wooden crates
with tiffin boxes belonging to common destinations are then loaded in the
goods compartment of the local trains, preferably in the last compartment
to avoid commotion. Unloading takes place at the destination station. This is
followed by another round of re-shuffling of tiffins to divide them according
to final delivery areas and the destination buildings.
Hand pulled wooden carts that carry around 150 tiffins are driven by 3-4
dabbawallas for final delivery.
Amazingly, all dabbas gets delivered between 11:00 p.m. to 12:p.m.
As a personal ethics rule, dabbawallas never break for lunch till all their
boxes have been delivered.
From 01:30 p.m. the collection process begins. The dabbawallas pick the tiffins
from the offices where they had delivered them an hour ago. By 4:00 p.m. the
group again meets at the original station where the final sorting and dispatching
begins. Each dabba travels through the same route before being returned to
its residence.
Each box shifts hands in transit 6 times and same in return. 2.4 million manual
movements thus happen in transit. They cater to four hundred thousand end
customers an on daily basis each dabbawalla covers a distance of 60 to 70 kms.
Speed and precision in handling the boxes, timely delivery to the right owners
helps them maintain their service quality.
One Mission – One Vision
Spread Excellence Everywhere and Always Delight the Customer”
A Flat Organizational Structure
The Mumbai dabbawallas follow a three-layer organizational structure – the
President, the Mukadams, and Members. They follow no complex hierarchy
or managerial structure, which not only reduces operational costs but also
empowers employees to perform at their best. Any employee who gets 10
years of experience as a dabbawalla is promoted to the status of mukadam or
supervisor.
Culture and Ethics
The average age of a Mumbai dabbawalla ranges from 18 to 65 years. There

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is no official retirement age. Most of them have the same culture, language,
values, work ethic, diet, and religious beliefs. The concept of uniformity plays
an important part in the sustenance of the organization. All workers wear their
white caps in business hours making them easy to identify. They adhere to duty
reporting times, respect their customers, and carry their identification cards.
They operate in groups of 20 – 30 people. Each dabbawalla is responsible for
30 – 40 tiffin boxes for collection and distribution, all through the three major
suburban rail routes.
Keeping it Simple
There is no chance that a dabbawalla would make a mistake. Even in harsh
weather conditions or circumstances, they deliver home-cooked meals on time.
It never happens that a Parsi chicken curry gets mixed up with a Jain dal-roti.
In this era of Wi-Fi and high-end technology, the organization believes in its
simplicity All the tiffins are picked and carried on a bicycle, a hand cart, and
the local train. Except the local train every step is handled manually, and no
technology is involved.
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Cracking the Dabba Code

If you a pick a dabba from the wooden caret of a dabbawalla, you can see on
the lid of the dabba, there are some alpha-numeric codes written or painted in
different colours.
 Years ago, when the business first started growing and the dabbas increased,
it became difficult to remember all the address of all the offices and houses.
The typical dabbawalla was not very educated and this made it more difficult
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to set a process in place.

They evolved a colour coding system. In the beginning only different colours
were used to denote different locations. With increase in business they
started to using symbols, which were explained to each worker as a part of
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their training. Now a days, Mumbai dabbawallas make codes using numbers
and alphabets in Hindi, English and Marathi.

Their coding system includes a:

Æ code for the house address to pick up or drop the tiffin
Æ A code for the office address (including floor) where the tiffin is to be
delivered
Æ A code for the destination rail route
Æ A code for the route to which the tiffin will be carried.
Æ A code for which dabbawalla will carry the tiffin through transit
Symbols and signs are used for identifying stations of origin and delivery.
This intelligent coding system helps them to drop and deliver the tiffin boxes
at the correct location without having to refer to a list or maintain large
databases.

Stick to basics
The business is eco-friendly. They have zero fuel, zero modern technology,
zero investment, and zero disputes. Despite suggestions to modernize from
big corporates, they decided they were better off with the basics. They will
continue to use bicycles and hand-pulled wooden carts ensuring
Æ That they do not get stuck and do not have to wait in city’s traffic
Æ That they have no fuel expenses.
Æ That they have do not incur any cost in training the staff to drive or run
complex technology systems
Æ That they maintain a low cost ecosystem

Relying on their efficient and fool-proof logistics system, Flipkart recently

decided to partner with the Mumbai dabbawallas to navigate the city streets.
Their success model is basically based on few simple concepts of work
ethic, community culture, honesty, integrity, discipline, time management
and is of course backed by a great operational plan.
 Handout 2 – Case Study
THE PUNJAB KITCHEN – A STORY OF FAILURE

General Information
Category – Food & Beverage
Country- India
Operation Started – 2016

Business Failure
Outcome – Shutdown
Cause – Competition
Closed – 2018

Founders & Employees

Number of Founders - 1
Name of Founder - Amit Gogia
Number of Employees- 1-10

Funding

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Funding amount - None
Amit Gogia, founder of The Punjab Kitchen was a hard-core sales
professional, who decided to set up a home-made food business with his
wife. They started by investing $1,200/month to set up the business and get
its first customers. However, once up and running they had to confront a big
problem: the prices their competitors were selling at were much lower than
their own, a point they hadn’t researched before setting up their business!
After some pivots, they decided to shut it down.
Amit had never worked in the food & beverage sector but was able to
utilize his skills from healthcare in building a new F&B brand. The idea
developed mainly because his wife who was a fantastic cook. She was
constantly encouraged by family and friends who had tasted her food – to
commercialize her passion.
After a few sessions of brainstorming the couple identified a gap in the
home-cooked food market, which most migrants living in their city (Gurgaon)
seemed to be missing the most! The North Indian food palette included
bread, lentils, vegetables, chicken, and meat. Once they identified what
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was required and what to make, they started ‘The Punjab Kitchen’. They
specialized in cuisine from the state of Punjab, which the majority of their
target audience seemed to prefer.
The business model was initially B2C with the intention of pitching to
corporates (B2B) at a later stage. They wanted to cater to direct consumers
 who wanted to buy home-cooked meals, so their tagline was: “homemade
food that fits your lifestyle”.
PAGE 176

Motivation
The couple were motivated by the fact that their target audience missed
home-cooked meals. Considering the gap they identified, they had little doubt
that they would face any difficulty in being able to sell their product. This was
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their first error.

Amit’s wife being the passionate one, oversaw main operations while Amit
worked as the marketer and the logistics-in-charge (which was the backbone
of the whole business).
Prior to TPK, he had held numerous positions within the corporate sector
either as head of sales, marketing, or business development in consumer or
healthcare sectors – this did little to prepare him for F&B. He had no idea about
the kind of challenges he would be face!

How was it built?

Amit began by doing some market research to realise that the sector in his
target market was completely fragmented with a few big, organized players
getting a majority of the business.
Without getting disheartened, they couple began by creating an online menu
and got in touch with a few professionals from the F&B industry. With the
positive feedback on the sample tasting and menu, they were clearly ready
to go.
They were very focused on design and good packaging and it took them a long
time to sort this out with multiple vendors. They also designed some collateral
to promote their business – such flyers, posters, banners, and standees.
This whole process took them 3 months of intense preparation. This included
the following steps:
Æ Incorporation of the company.
Æ Hiring a creative freelancer for branding.
Æ IT outsourcing for the website.
Æ Photo-shooting of food.
Æ Menu finalization.
Æ Building marketing assets (packaging, brochures, carry bags, posters,
banners, standees).
Æ Outsourcing delivery and cooking. They hired one cook and one delivery
person.
Æ Preparing a dress code for the delivery boy.
Æ Negotiation with food platforms such as Zomato and Swiggy. Both
websites were discovery platforms which helped customers find and
order food from amongst thousands of food shops.
Æ Shortlisting influencer marketing partners for social media.
They began in high spirits clueless of what might follow.

Pricing: The first big challenge

The pricing of the food was the biggest puzzle to solve. They were clearly not
even close to the market benchmark the current price consumers were paying
to get a meal, which was around 1$ (70 RS). Their competitors were selling the
meals at prices much lower than theirs.
The only two ways they could solve this problem was by achieving economies
of scale, which meant to have thousands of customers so that their costs of
producing a meal reduced, or to re-use the packaging of the delivered food.
Neither of these were feasible options. After working out a basic profit margin,
they decided to price their products, the vegetarian meals at $2.5 (150 RS) and
the non-vegetarian meals at $3.5 (200 RS).

Publicity: The second problem at hand

Publicity was another challenge. They had wasted much of their resources
in creating collateral. Now their hopes were pinned on getting traction via
newspaper inserts or Zomato AD inserts. Additionally, they created some
banner stands to be placed in some offices who had started buying their
products. These are some of the marketing strategies they went for:
Æ Mass emailing: It obviously didn’t work.
Æ Newspaper inserts: They didn’t work.

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Æ AD on Zomato brought some customers, but the ROI was not justified. They
ran a lot of campaigns, using different permutations and combinations
with various categories under the Zomato platform for a year, but the
results were still not justifying the costs.
Æ Facebook Ads didn’t work. They did get likes but it did not convert into
customers. Within the first year, they reached 9K likes on their page.
Æ They invested the most on food bloggers by getting them to sample free
food and ask for genuine reviews to get ratings on Zomato. This was the
only thing that worked for them in spreading the word around. Within the
first year, they had reached a 4.3 rating out of 5 on Zomato.

Causes of failure
Price was the biggest barrier the Punjab Kitchen faced. Their competition
was selling at half their price! They did have a much better product and the
packaging was good, but the customer seemed indifferent to this.
They wanted to get some benefits from the economies of scale, but couldn’t
scale up instantaneously to drive the pricing down. The signs were clear within
PAGE 177

the first year. The numbers were not growing in the way they thought they
would and the monthly pay-outs started to hurt Amit and his wife.
They tried several attempts to get a breakthrough on B2B. They also tried to
become vendors to corporates who bought food for their employees but here
too they found stiff competition from established restaurants.
 Eventually, TPK couldn’t continue to bleed. Their resources were drained
and even after the end of 18 months, they were far from break even. It
was indeed a sad moment to close as their dreams had included growing
PAGE 178

internationally!

Mistakes and challenges

The major challenge TPK faced was to create acceptability for their product
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at their price point. They could have overcome this challenge if they had the
financial capability to run campaigns to educate the customer about their
differentiated product.
The market is price elastic, especially so for the kind of cuisine TPK were
offering. They could not have been successful at their price point without
making some changes either in their product offering or packaging or
elsewhere in the value chain.

Revenue and losses

Amit could not break-even after running the business for almost 18 months.
Their revenues ran short of their expenses.
At the time of closure, they had only got $800 (50K RS) in revenue while
they were burning $1,200 (75K RS) every month. This included salaries of 2
full-time employees, marketing cost, and other expenses.
If TPK had to start over, what could be done differently?
Although Amit had several thoughts at the time of closing that they might
have succeeded in the B2B model, but now he really doubts about that.
Where could they have spent much less time and money, Amit feels in
retrospect was on their branding exercise (they had changed logo twice!).
The customer in their target segment was indifferent to it!

Conclusion
An operational plan is a strategic document that defines how different
teams or departments like recruitment, marketing, and finance, contribute
to reaching different goals and objectives for a company. It also creates a
framework for the smooth running of daily tasks in production, distribution,
and finance.
By being able to draft an operational plan an individual comes one step
closer to becoming a good, long sighted, logical, and successful leader.
 Module 5
Business Ideation
and Business Canvas
MODULE 5 SESSIONS 9 hours 30 minutes Pg. 179

5.1 Idea Generation 2.30 hour Pg. 180

5.2 Preparing a Business Plan 2+2 hour Pg. 189

5.3 Presenting the Business Plan 3 hour Pg. 199

 Session 1
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Idea Generation
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Caselet, field Handouts 5 hour

research

Aim of the Session

To help participants analyse various factors to arrive at the best
possible business idea.

Session Objective
Æ To help participants develop an analytical approach to evaluate
and finalize their business idea.
Æ To help participants understand the importance of doing field research
and identifying key processes and stakeholders before zeroing in on
their business idea.

Expected Outcomes
Æ For participants to come up with a viable Business idea
Æ For participants to familiarize themselves with the “ field research
process” and evaluate the idea.

Idea Generation
Idea generation or ideation is the act of forming ideas. It is a creative process
that encompasses the generation, development, and communication of new
thoughts and concepts, that may well become the foundation of innovate
strategies to develop into viable business ideas.
Idea generation is described as the process of creating, developing, and
communicating abstract, concrete, or visual ideas. It's the front-end part of
the idea management funnel and it focuses on coming up with possible
solutions to perceived or actual problems and opportunities.

MODULE I: SELF ANALYSIS AND SELF REFLECTION

Why is it important?
Every business begins with an idea. An entrepreneur seeks to solve an
existing problem or fill a gap by executing that idea to create a business.
For an idea to lead to a business, it should be possible to execute and
viable to run.

ACTIVITY 1 : SINKING BOAT (BS)

Material Required
Pen, paper
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Process
1. Play the game ‘The Boat is Sinking’.
 2. Divide your class into groups of 4-5 and ask each participant in each
group to make a list of ideas they think can work as a business.
PAGE 182

3. Ask any one participant in each group to write all the ideas generated
in the group on separate slips of paper, using a large font size for
everyone to see.
4. Now ask the participants in each group to imagine that they are sitting
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in a boat. Tell them that the boat is too heavy and cannot carry all of
them with all their ideas. To save their lives, they must throw away at
least one of their ideas.
5. Ask the participants to explain why they threw away that particular idea.
6. Continue with the exercise until the last round when you tell the group
that the boat can only survive if there are no more than three ideas per
group.
7. Discuss what they learnt from this activity.

ACTIVITY 2 : ANALYSING A BUSINESS IDEA

Material Required
Examining the Internal and external fit for business ideas, paper to draw
the SWOT analysis for your business idea, pen

Process
1. Distribute the format ‘Internal and External Fit of the Business Idea’
to the participants.

Handout 1
EXAMINING THE INTERNAL FIT OF A BUSINESS IDEA
Tell the participants that while thinking of their business idea, they must
find the correct fit – that is they must ask themselves if the idea aligns with
who they are and what they are capable of. They must ask themselves:

What are my interests – I enjoy doing the following (include your

hobbies). List those that go well with your business idea.
What is my experience – I have worked in or have educational experience
in the following field(s) of business (list jobs, training, and other sources
of work experience). List those that go well with your business idea.
What is my business network – I know the following people, friends, and
relatives who are in business and who could provide information, advice, or
assistance with respect to this business idea.

EXAMINING THE EXTERNAL FIT OF A BUSINESS IDEA

Ask yourselves the following questions to understand your

competitive environment:

Æ Is yours the only business of this kind in your area?

Æ If there are other businesses similar in nature, what is your strategy to
successfully compete with them?
Æ What is your competitive advantage? (for example, would you be
providing better goods and services than those that exist at the
moment? Would you be able to produce and therefore sell at better
rates? Do you envision that your business eventually shows higher rates
of growth than existing businesses as a result of these advantages?)
Æ Why do you think this business is viable?

FITTING INTO THE BROADER ENVIRONMENT

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Natural resources:

Æ Does my business idea use natural resources abundantly available in

the local environment?
Æ Does it utilize some waste products?

Characteristics and skills of people in the local community:

Æ Are the skills or competences required for this business idea widely
available?

2. Show the SWOT Analysis format to your class (the SWOT matrix was
discussed extensively in earlier classes, you may refer to it to remind
the participants of how the matrix works)
Ask each participant to choose two ideas from their shortlist and use the
SWOT matrix to evaluate these ideas. Use inputs handout on ‘internal
PAGE 183

and external fit’ to fill the SWOT matrix. Strengths and Weaknesses
correspond to the internal fit of the business. Opportunity and threats
arise from the external fit or your business environment.
 Facilitators’ Note
PAGE 184

Facilitators’ Note: Allow the participants to make informed assumptions

where there is lack of information. Help them derive the key merits and
demerits of their idea based on SWOT analysis. Emphasize that this exercise
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is for the purpose of practice only. They will need to do a field study to get
the information the missing information and fill it in before taking any actual
decisions.
Tell them, “For great returns, theoretical knowledge should always be
complemented with field research. This session aims at acquainting the
participants with the process of field research”.

ACTIVITY 3 : MARKET RESEARCH (BS)

Material Required Duration

Paper, pens 1 hour

Process
1. Read out the following caselets to your class.

CASELET- I
Kamla has a small farm, and her husband works in a nearby
mine, but even though both of them have jobs, they do not
earn enough money to pay for their children’s education.
Kamla decides to try and start her own business by rearing
chickens to sell. She knows how to do this and her uncle gives
her a loan of Rs. 10,000 to start the business.
However, before she begins this venture, someone tells her that
there is a huge demand for sunflower seeds due to a shortage
in availability in the market. Traders are knocking on the doors
of local farmers asking them to take up production. Thinking
that she can earn a lot more money from producing sunflower
seeds, Kamla changes her business idea from rearing chickens
(which she knows about), to starting a sunflower seed venture.
Kamla has never grown a large quantity of sunflowers. She
spends all the money from the loan to buy seeds, fertilizer, and
 the cleaning/ sorting equipment. She uses most of the family farmland
to grow sunflowers, and there is hardly any land left to grow rice and
vegetables for the family to eat. The chemicals from the fertilizer begin
to make her children sick. She has to buy food for the family – this was
earlier available from her farm. It takes a lot of time and effort to clean
and sort the sunflower seeds, and she has to employ someone to help
her.
Meanwhile, acting on similar advice, a lot of other farmers have started
growing sunflower seeds too. Therefore, by the time her produce is
ready to sell, the market is already saturated with sunflower seeds and
Kamla cannot find a buyer. To reduce her losses, Kamla has to sell the
sunflower seeds at a very low price to a local shop. As a result, she
makes very little money, and is not able to pay back the loan.

CASELET- II
Lily has been working in the assembly line of a garment factory for
more than five years. Her salary is low, and she is often required to work
overtime. Lily’s sister-in-law comes to visit one day and complains that
she was unable to find any good clothes for her 12-year-old daughter
in the local market. She says that the clothes in the stores all seem
to be either made for younger children or for adults. After she leaves,
Lily decides to go visit the garment shops in her town. She sees young
teenage girls shopping in the stores, but she notices that the number

MODULE I: SELF ANALYSIS AND SELF REFLECTION

and variety of clothes geared to that age group is indeed limited.
She had already been thinking of quitting her job and opening her own
business. She decides to design some pretty clothes and dresses for
young teenage girls. Lily makes some drawings of clothes that would
appeal to that age group. She then takes her drawings to a local
clothing shop, asking the owners if they would buy the dresses in the
drawings, how much they would pay for them and how many they
would be willing to buy. The shop owners like her designs and say that
they would display her clothes.
Lily then uses her savings to buy a sewing machine and some material
to make her first batch. She works in the evenings after getting off from
work at the garment factory. All the dresses she makes sell very well
and the shops are willing to pay her in cash upon delivery. Lily then
decides to quit her job to focus on her own business. Within six months,
Lily starts receiving regular orders from the shops. She plans to buy
one more sewing machine and hire one of her friends to work for her.
PAGE 185

2. Divide the participants into two groups. To group 1, distribute the case
‘Kamla’s sunflower seed business.’ Distribute the ‘Lily’s clothes business’
caselet to group 2.
 3. Ask them to discuss with other members of their group, the reason(s)
for the success or failure of the cases they have received. Give them
sheets of paper and pen to write down the points.
PAGE 186

4. Now ask each group to present their points.

Kamla’s Sunflower Seed Lily’s Clothes Business

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Kamla produced sunflower seed Since Lily did her market research,
without any market research. She she knew
never asked: that pre-teens and teenage girls
Æ Was there an actual demand for in her area have limited choice
her product in the market? and access to clothing specifically
Æ Who needed it? designed for their age group. What
they wear is either designed for
Æ Why did they need sunflower seed younger children or for adults. Lily
and not aims to fill the gap by producing
Æ Any other type of oilseed? fashionable clothes that are suitable
She therefore had no idea how big the for this age group.
demand
for sunflower seeds would be.
Consequently, she could not find
customers as the need had been
fulfilled by the time she was able to
supply her goods.

Kamla grew sunflowers and produced Lily had significant experience in

sunflower oilseeds without having any making clothes. She knew about
prior knowledge and experience. She sewing. However, she had no
was not aware of the experience in designing clothes,
challenges involved in the business, so she tested her competency by
such as, the toxins from fertilizers. making some designs and showing
Kamla had no advantage that she them to the clothes shop owners.
could use in her favour and she ran
into too many problems from all fronts.

Further, she did not research to find She only quit her job after her first
out about competitors who were batch of dresses was accepted for
going to fulfil the same needs for the display in the shops.
same group of customers. She also knew that there was no
competitor filling in this particular
need in the market at the moment.

5. Importance of Field Research

(a) You can gather useful information about factors affecting your
business by talking to potential customers or suppliers and other
members of the business community in your target area.
 (b) Collecting information for your business gives you an opportunity
to promote your business idea and present yourself as a potential
entrepreneur.
6. Tell the participants about the important stakeholders that they should talk
to or include while doing market research:
(a) Potential customers: Their views are essential for you to understand
whether your proposed product is in fact in demand and/or if you
need to modify your idea to meet their needs.
(b) Competitors, suppliers, and potential investors: Their views will
reveal the challenges you are likely to face, as well as other issues
related to your business idea.
(c) Financial institutions: Find out their lending requirements to
determine whether borrowing for the new business is possible.
(d) Key informants and opinion makers: These will be people who
know a lot about your field of business and/or your potential customer.
Their views could give you a better insight into the feasibility of your
business idea.
7. Ask the participants to prepare for market research. Tell them to discuss
what information they need, identify who all they need to interview, and
what questions to ask. Ask them to present their results on a flipchart.
Each group will share their results and get input/feedback from the trainer

MODULE I: SELF ANALYSIS AND SELF REFLECTION

and the other group.
8. Now ask them to prepare questionnaires for their market research, asking for
specific information needed to develop their business idea. The questions
should be simple, short, and specific. The following types of questions may
be asked:
T Where do you buy goods for your shop?
T Which goods do you buy daily/monthly?
T Which goods are of an essential nature?
T Do you buy any goods from a far-away market?
T Why do you go to the far-away market?
T What type of behaviour from the salespeople irritate you?
T What types of goods do you sell?
T Which goods are sold most?
T What types of problems do you face while selling?
PAGE 187

T What are your suggestions for running a shop in this area?

Types of Information to be collected during the Survey
T Current level of demand for your goods
T How much do customers spend on the items specified
 T Availability of raw materials
T Cost of raw materials (low, high, medium)
PAGE 188

T How much is supplied

T How things are sold
T What is the sales value of the goods?
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T What is the degree of competition?

T Background information (education, experience) about the
customers
T Any other

Facilitators’ Note

Conclude by highlighting that a field study is important, as it provides more

information to validate the participant’s ideas. To get the right information,
one needs to identify the right source/people to talk to and prepare the
right set of questions for them. All the expected areas of information must
be covered through the questionnaires prepared. The participants must
know whom to approach, what to ask and how, before they venture out for
actual field research.

Conclusion
Ideas are the building blocks for all innovation. They are what we work
on, so the first step of starting with anything new is finding the right idea.
We must make use of the different tools and techniques available to us to
come up with quality ideas and then evaluate whether they can be pursued
as business ideas making use of techineques such as SWOT and market
research.
 Session 2
Preparing a Business Plan

MODULE I: SELF ANALYSIS AND SELF REFLECTION

O DOLO ALS REQ RATION
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Classroom Handout, paper, 3 hours +

activity & group and pen 3 hours
discussion.

Aim of the Session

To help participants understand the concept of a business plan & its
PAGE 189

components, and its importance in creating and running a business.

Entrepreneurs starting a new business require a well-defined
business plan to efficiently manage their business.
 Session Objective
PAGE 190

To help participants draft a business plan by breaking it into various

segments/components, ensuring that the business plan is well-
structured and facilitates a smooth flow of thoughts.
MODULE I: SELF ANALYSIS AND SELF REFLECTION

Expected Outcomes
By the end of the session participants will be able to:
Æ Draft a well-structured.
Æ Present their business plan effectively.
Æ Be thoroughly acquainted with all aspects of a business plan and its
components.

The Business Plan

A business plan is a formal written document containing business goals,
the methods on how these goals may be achieved, and the time frame
within which these goals need to be achieved. It describes the nature of the
business, background information on the organization, the organization's
financial projections and the strategies it intends to implement to achieve the
stated targets. In its entirety, this document serves as a road map providing
direction to the business.

While thinking about a business, think about

What will be the Name of your business, it’s mission

Business
statement? Do you have a list of members supporting your
Identification
venture? Partners, investors, etc.

Will your business be a proprietorship, a partnership, a LLP,

Type of Business a private limited company, a Public limited company, an
industrial cooperatives, and so on?

Define your service/ product offering, estimate the sales that

Sales you need for each service/ product sold locally, within the
state and outside to make a profit.

What is a suitable place to conduct your business to get

Place of Business
maximum traction while keeping the costs to a minimum?
 How will you get possession? Will it be rented or your own?
What will be the layout plan and how will you make sure that
it is an efficient one?

Understand the compliances you will need: Shops Act, FSSAI,

Compliances
Udyog Aadhaar, GST, PAN, TAN, current account etc.

What is the infrastructure you will need? Material, labour (hire

Infrastructure
and train), technology, processes, machinery?

Estimate cost of registering the venture, compliances, deposit

Capital
on office/factory space, machines, equipment, furniture, land
Expenditure
& bldg., fixtures, electrical installation, computers, vehicles,
needed
other long-term deposits, life span of assets for depreciation,
(estimating cost)
etc.

Working capital needed for raw material, stocks-in-process,

Working
finished goods, debtors, salary, wages, rent, electricity, repairs
Capital needed
& maintenance, other admin expenses and overheads,
(estimating cash
drawings, interest payable, income tax payable, marketing
needs)
expenses, etc.

How many competitors do you have, their number of years in

business? What you’re your market analysis say? What are the
Understanding trends in the market? What is the demand - supply forecast

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Competition and gap? Do a swot analysis to determine your profitability
and understand the kind of market share you can aim to
capture.

How will you market your product and get ahead of

competition? What will form your essential marketing
Marketing collateral? Business cards, brochures, posters, flyers, online
presence, business tie-ups? What is the cost involved in
these?

Where is the money to set up and run the business coming

Source of Funds from? Long-term loans, working capital (cash/credit), own
contribution

In case you need a loan, how will you get guarantors? provide
Loan collateral? Think about creating a project report. Have you
included the cost of interest in your variable costs?

Assess the profit viability of your business in the light of above.

Profit & Viability of
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Make profitability estimates, study your break-even point, and

the business
your capacity of repayment of debt.

Record Make a list of the records you will keep: Invoices, receipts,
Maintenance expense tracking, cash book etc.
 Components of Business Plan
Drafting a business plan by breaking it into various segments ensures that the
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business plan has a well-structured format and a smooth flow of thoughts.

A typical business plan begins with an executive summary, moving on to
talk about its business description, market analysis, funding or financial
projections, operational structure, and supporting team.
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1 THE EXECUTIVE SUMMARY:

The executive summary or the company profile of a business talks about
the enterprise, its origin, its capabilities, and achievements, as well as
its financial standing. The purpose is to give the reader a summary of all
sections mentioned in the plan. An Executive Summary should include
T A description of your business
T Analysis of your market and customers (market size and potential
market share)
T A description of your product or service
T A note on the intellectual property status (e.g., patents, licenses, etc.)
T A note on competitive differentiation
T Financial highlights
T Status of business and your offer while seeking investment (how
much investment you are seeking)

2. BUSINESS DESCRIPTION
The following are some of the questions that must be answered while
preparing the business description section:
T When was the business started or when will it be started?
T What is the mission of the firm?
T What is the vision of the firm?
T What are some of the products or services offered by the business?
T How does your business make money?

3. MARKET ANALYSIS
A business plan must access itself, its merits, and demerits as per the
demands of the market. It should also conduct a comprehensive study
viz-a-viz its competitors keeping in mind the nature of its own business
vs theirs and why it thinks it can succeed. This section will cover:
a. Market trends - What are the latest trends in the market? Where
does your business fit in? How is your product or service making a
difference in the market? What changes in trends are expected in
the future?
 b. Target market - Who are the people who will use your product?
Can they afford your product at its current pricing? What is their
financial capacity? Where are they located? What is their need?
What are their expectations? Are you fulfilling these?
c. Competition Analysis - Are there other enterprises or businesses
who offer similar products? Why do people buy their product?
How is your product better than theirs? Why will the customer
come to you?
d. Pricing - How is the price of your product calculated? Is it priced
moderately as per the market? How does your product compare
with the products of competitors?
e. Sales and Marketing Strategy - How will you reach to your
customer? How will you create a distinguished brand identity for
your product? What will the mode of sales be? What will be the
mode of advertising and publicity?

4. FUNDING/ FINANCIAL PROJECTION

This may be the most challenging part of your business plan. The
following are to be mentioned in this section of the plan:
a. The total cost of starting the enterprise or business with a break-up
of costs into capital expenditure (the cost of machinery, land and
other essential instruments required to produce your product or

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service) and working capital (the cost of labour, raw material and
other essentials required for producing and selling your product
and keep your enterprise running)
b. Funds available in the form of savings, loans availed from
financial institutions, banks, or other sources such as friends or
family or investors.
c. Need for more funds in case of expansion, increase in demand or
a major opportunity that requires investment. (Write in detail the
procedure and processes that will be used to repay any borrowed
funds - emi, tenure, etc. and/or about your offer to a potential
investor and how and when they will be able to capitalise on it.)

5 OPERATIONAL STRUCTURE
The operational structure section in your business plan is where you
describe the processes used by your company in a chronological (and
logical) manner. This is typically shown in the form of an illustration of
what is being done against the time it is being done in. The operational
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structure illustration normally deals with the processes that focuses on

output (i.e., the organization’s outputs from products and services). It
is to showcase the workings behind your being able to generate sales
and revenue.
 6. TEAM
This is the simplest section to fill. You need to mention your key
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employees, along with their strengths, education and experience.

A well written business plan includes

1. An Executive Summary
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2. Business & product or service description: Including the current

stage of development – beta, prototype, etc. and Intellectual property
status (if any) e.g., patents, licenses, etc.
3. Customer/Market analysis: Market size and potential market share
a. Sales and Marketing Plan: How you will go-to-market?
b. Competitor Analysis: Competitors and your competitive
differentiation
4. Funding & Financial projection: Cash flow, income statement, &
balance sheet, etc
5. Operational structure: Output oriented process illustration with
timeline
6. Management team and/or advisors and their relevant experience
7. Offering of the company: This section should only be made if the
entrepreneur is generating funds from investors. They must include an
explanation of their offering to investors, indicating how much money
is required, how it will be used, the proposed structure of the deal (i.e.,
stock, debentures, etc.) and possible exit strategies. Detailed financial
data and tables should be included in the appendices.
Please note: The entrepreneur is not required to reveal the exact desired
terms of the deal (i.e., proposed company valuation and percentage
of company being offered). However, they should expect to be asked
about these terms and should be prepared to answer these questions
(if this information is not already provided in the written plan.) Some
investors will want to know the estimated company valuation as well.
8. Appendices: Appendices should be included only when they support
the findings, statements, and observations in the plan.

Why is a Business Plan important?

An understanding of all the components and learnings required to make
a good business plan is one of the most important steps in your path to
success as an entrepreneur. It provides clarity on all aspects of your business,
from marketing and finance to operations and product/service details. It is
a bird’s eye view of all that needs to be done and how you intend doing it.
Without a business plan, you are likely to invest too much time or money
into a business whose viability you haven’t evaluated. The purpose of a
business plan is to help articulate a strategy for starting a business. It helps
guide your thoughts on steps to be taken, resources required for achieving
your business goals, and a timeline of anticipated results.
For existing businesses: update your business plan annually to help guide
growth and navigate expansion into new markets. The plan should include
explicit objectives for hiring new employees, market analysis, financial
projections, and potential investors. The objectives should be made keeping
in mind how they’ll help your business prosper and grow.

ACTIVITY 1 : MY BUSINESS PLAN

Material Required
Handout, paper, and pen

Activity Objective
To let students prepare a business plan in groups as a classroom
activity then let other groups analyse, question, and rate them. This
is an interactive activity that will help them learn from one another.

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Process
1. Tell the Class - “One feels pride in thinking of oneself as a
business owner, to dream about your successes, and to talk
about your ideas. But you must be able to answer specific
questions about a business plan, if you are serious about it
taking off”.
2. Now divide the class in 4 groups and ask them to think like an
entrepreneur and develop a business plan for a business of
their choice.
3. Give the following handout, this will help them in developing
the plan

Handout
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Æ How will you describe the business?

Æ What is your product, or service?
Æ Who will buy it?
Æ Where should your business be located, and why?
 Æ How will you attract customers?
Æ What is your competition?
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Æ How will you organize the workers of the business?

Æ How much money is needed to get the business started?
Æ How many customers will you have per month and how much will they
buy per month?
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Æ What are your operating costs?

Æ How much money will your business earn each month by selling your
product or service?
Æ How much investment will you need to keep the business going until
you make a profit?
Æ How much money do you need to borrow to start this business?

4. Once they are done tell the class, “Entrepreneurs need to develop
a business plan that is elaborate and explains every aspect of their
business so as to create an impact on the mind of the reader.” Now,
ask all groups to share their plans with each other. You may give your
input to improve their plans as well.

Ask each group to check each other’s business plan and

match it with the check list given below

Component Mentioned Not Mentioned

An Executive Summary

Business & product or

service description and
Intellectual property status

Customer/Market analysis

Sales and Marketing Plan

Competitor Analysis

Funding & Financial

projection

Operational structure

Management team and/or

advisors

Offering of the company

Appendices
5. Rating the Components of the business plan: After all groups have
checked all the items on the checklist, look into the description of each
section and rate the plans based on this description as follows:

(Poor) (Below (Average) (Good) (Excellent)

Component
1 Average) 2 3 4 5
An Executive Summary

Business & product or

service description and
Intellectual property status

Customer/Market analysis

Sales and Marketing Plan

Competitor Analysis

Funding & Financial

projection

Operational structure

Management team and/or

advisors

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Offering of the company

Appendices

Facilitators’ Note

Discuss the following points with the class before asking them to create
their business plans:
Clarity - An entrepreneur needs to ensure every section of the business
plan is explained clearly. It should also be easy to read for the reader.
Conciseness - A big business plan does not necessarily mean a better
business plan. The plan should be to the point and crisp.
Completeness - All the sections mentioned should be furnished with the
right details. Nothing can be left or omitted.
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Correctness - It may not be possible for a business to project absolutely

accurately. However, all projections must be backed by past performance
and future analysis. An entrepreneur also needs to be very careful while
mentioning the data from their past performances. Many entrepreneurs
 assume that the higher they show their numbers to be, the better the plan
will be. This is not the case. The numbers need to be relevant and accurate.
In case an entrepreneur decides to falsify numbers, the image of the
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organization may get tarnished. They may also be denied loan in the future
for breaching investor trust.
After the end of the activity tell the class that a business plan should
ideally be assessed by a qualified agency or individual. A qualified agency
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or individual is someone who has the knowledge to analyse all the facts
and figures of the business and access its profitability. Such agencies or
individuals may include:
Æ Business Analysts
Æ Chartered Accountants
Æ Banks
Æ Entrepreneurship Development Institutions

Conclusion
The above activity would have helped your students learn and practice
making an effective business plan keeping in mind all its elements. They
would have understood the importance of a business plan and learnt to
asses it quality against benchmarks provided, as well as inter-personal
feedback.
 Session 3
Presenting the Business Plan

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Classroom activity, group/ Handouts, paper, 3.5 hours

individual presentations, and pen
and case stories

Aim of the Session

To help students presentation their business plan effectively.

Session Objective
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To help students acquire presentation skills. Giving an effective

presentation means working with both the audience and the topic.
One should be able to attract their audience’s attention and make it
engaging and crisp.
 Expected Outcomes
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Æ That participants become better presenters

Æ That participants gain more confidence to speak in front of an audience
Æ That participants learn to engage their audience’s attention while
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presenting their business plan.

Æ That participants are able to better their sales pitch and communication
skills by the end of the session.

What is a Business Plan Presentation?

Business plan presentation is a formal way for an entrepreneur to present
her/his business plan in front of an audience of relevant stakeholders.
Facts in a business plan presentation are typically aided by using audio-
visual presentation material, projectors, flip charts, whiteboards and so on,
to present statistical documents, and more. The Business plan presentation
is designed to sell the entrepreneur’s business idea to investors through
a concise and engaging overview of what the business does, how it fills a
consumer’s need, and what are they looking for in terms of an investment.

There are various kinds of Business plan Presentations, these include:

1. Group Presentations
The findings of a team are communicated through group presentations.
These types of presentations are informational in structure and seek to
convince people to accepting new programs and/or strategies. They
may also be used to present reports.
2. Persuasive Presentations
The main motive of a persuasive presentation is to convince the audience
to support certain views. Generally, they outline an organization’s goal
or problem and then elaborate on the point being presented.
3. Informative Presentations
This type of presentation aims at educating the audience. It consists
of status reports or summaries. They start with defining a goal, what
has been accomplished, what needs to be done, and are followed by
action points and specific plans.
4. Product Catalogue
A product catalogue helps describe your product or service. This
presentation works to explain how your product is going to solve the
 problem for your consumer or address a demand gap. These typically
include all necessary details and attributes regarding your product.
5. Sales and Client Deck
The sales deck is presented before prospective clients. It includes your best
sales pitch and the unique selling proposition for your product or service to
be. A sales deck will highlight the attributes of your product, service, and/
or company and bring out its best features. There are no standardized sales
decks. They are customized according to your product and the needs and
expectations of your customers.
6. Corporate Presentations
Corporate presentations are needed throughout the lifecycle of a business.
They reflect the professionalism and competitiveness of the company to be
considered by its audience. They are presented in seminars, to prospective
clients and shareholders, to venture capitalists, and/or other corporates.
If you are a start-up, the following tips to create a successful corporate
presentation would prove useful:
T Keep the look professional and consistent
T Include data, statistics and key metrics to substantiate your claim
T Keep your slides crisp, clear and uncluttered
T Limit the number of slides, do not ramble.

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T Re-check all facts, typos and make sure you are to-the-point.
7. Investor Pitch Deck
A great pitch deck gets potential investors excited about your idea and
engages them in a conversation about your business, hopefully leading to
an investment. An investment pitch deck is part of your branding collateral
and should follow the overall ethos of your company.
Most entrepreneurs use PowerPoint, Prezi, or Keynote to create presentations
now a days. While audio-visual aid no doubt add a lot to your presentations,
don’t fear a simple chalk and board presentation if your facts are clean and
your ideas organized in an effective manner.

Why Business Plan Presentation important?

Business plan presentations are important to sell an idea or a product to an
investor or a consumer. A viable business plan presented in an effective manner
is likely to get desired results from investors and other stake holders. This makes
it exceedingly important for the success of your business venture.
PAGE 201

The presenter needs to prepare and rehearse before giving a business

presentation to remember all the points and remain confident. Remember, no
matter how good an idea or a business plan might be, if the presentation and
 sales pitch used is not effective, confident, and engaging, it does not give
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the desired result or output.

ACTIVITY 1 : SHARPENING YOUR SALES PITCH

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Material Required
Handout, paper, and pen

Activity Objective
That participants learn to present their a sales pitch effectively

Process
1. Presentation Strategies- Divide the classroom into 4 groups. Ask
each group to make a business plan with the help of all members
in the group. Ask them to divide their tasks into what to do before
the presentation (how to prepare for a presentation) and what to do
during the presentation (how to effectively deliver a presentation).
When the group has finished, they will present their ideas to the
rest of the class. Give the following handout to the participants for
referring to, and understanding the activity better.
2. Ask them to keep the following in mind before they begin the
exercise.
In the preparation phase - Know your audience, try, and gauge
what they expect and try to deliver facts that are likely to generate
maximum traction.
Delivery Phase – Remember to maintain eye contact and speak
with respect, kindness, and confidence.
Presentation Language - To help presentations flow smoothly from
one topic to the next, or to highlight important points or examples,
we use signposting language. Signposting lets the audience know
where you are in your presentation and when you are moving to a
new topic.
3. Giving below is an outline of how to organize a presentation and use
proper expressions.
 Handout
Introduction: Greeting:
Good morning, everyone!
Thank you for coming to my presentation.
Welcome to Samsung Electronics.

Name/Position:
My name is and I’m the Director of Marketing at
Samsung Electronics.
I’m responsible for

Topic:
Today, I’m going to talk about

Purpose:
The purpose of my presentation is
My objective today is to

Outline:
I’ve divided my presentation into three main parts:

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First
Next , and finally
It will cover the following:

Timing:
I plan to be brief today.
My presentation will last about 15 minutes

Questions:
If you have any questions, I’ll be happy to answer them at the end of my
presentation.
If anything needs clarifying during my presentation, please feel free to
interrupt me. There will, however, be plenty of time for questions at the end
of my presentation.

Sample Introduction:
Good morning, everyone! Welcome to Samsung Electronics. My name is
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Subhadra Singh, and I’m the Director of the Marketing division. Today, I’d
like to tell you a bit about our company and what we do. My hope is that,
by the end of my presentation, you’ll have a clearer picture of Samsung
Electronics and where we are headed. I’ve divided my presentation into
three main parts. First, I’ll tell you a bit about the background and history of
 Samsung Electronics. Then, I’ll introduce our products, which I think you will
find extremely interesting. Finally, I’ll tell you a bit about our plans for the
future. My talk will last for about 15 minutes. If you have any questions, I’ll
PAGE 204

be happy to answer them at the end of my presentation.

BODY: Transition into Body:

Let’s start with: or
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Let’s begin with:

Transition from One Subtopic to Next:
Let’s move on to: or
That covers the history. Let’s turn to: or
Now that you have a better picture of our history and current situation, let’s
turn to the future of our company.

CONCLUSION: Transition from Body to Conclusion:

That brings me to the end of my presentation, or
That covers everything I wanted to talk about today.

SUMMARY:
Before I finish, let me just summarize the main points. Today, I’ve talked about
the history, the current situation, and the future of Samsung Electronics, or
Perhaps I could just briefly recap the main points. I’ve discussed:

Concluding Remarks:
As you can see, Samsung Electronics is a dynamic company with a clear
vision for the future, or
As I have demonstrated here today,

Recommendation:
Therefore, I strongly encourage you to or
Because of , I strongly recommend that we :
, or
In order to meet the needs of our customers, I encourage everyone of you
to

Thanks:
Thank you very much.

Questions:
If you have any questions, I’ll be happy to answer them now, or
Any questions?
 ADDITIONAL LANGUAGE:
Giving Examples:
For example, or
For instance, or
One example of this is
Our company has many cutting-edge products. For example, our new
Infinity Notebook Computers is made with cutting edge technology.
Adding an Opposite Idea:
On one hand , on the other hand , or
However, or
Although,
On one hand, our revenue has been increasing. On the other hand, though,
our market share has decreased.
Although our sales have been increasing, our profits have actually fallen.
Adding Another Idea:
In addition, or
Moreover, or
Another example is

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There are several reasons why Bangalore is a great place to set up a call
centre. Bangalore is considered to be the Silicon Valley of India, and many
high-tech companies are based here. In addition, the city boasts of a highly
educated workforce. Moreover, the cost of labour is much lower here than
in the U.S.
Giving an Effect or Cause:
Consequently, or
As a result, or
Therefore,
Our competitors have been coming out with new products. As a result, our
market share has been falling.

4. Practice: To be done individually.

Complete the following presentation by filling in the blanks with appropriate
expressions.
PAGE 205

everyone. to my presentation.
Arundhati Roy, and I’m the co-founder of Agrani Foundation. Today,
a bit about digitization and how it impacts marketing.
is to help you understand how to choose proper medium of
 marketing and how to improve your marketing skills. I’ll begin
by telling you a bit about digitization effect on marketing. ,
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I’ll introduce some core values which can , I’ll give you some
strategies for about 20 minutes. the digital
marketing skills. Digital literacy can be viewed as a major iceberg
.
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some core values that vary from case to case. One value is how
we relate to time some strategies for dealing successfully with
digital marketing effects . Before I finish, .
Today, . digitization plays a huge role in how we
grow and understanding how its usage can help us market better. Thank you
very much for your attention.
5. After completing the practice activity sheet compare the flow with points
given in Step 3 above.

ACTIVITY 2 : PRESENTING YOUR BUSINESS PLAN

Material Required
Handout, paper, and pen

Process
1. Before asking each group to start making a business plan and
presenting it, let’s look at the high-level business plan for an
Industrial Kitchen.

Handout
Case Study: BUSINESS PLAN for “Ghar ka Khana” (Home Cooked Food)
Executive Summary:
Æ Name of the Business – Ghar Ka Khana (Home Cooked Food)
Æ Location – Gurgaon, India
Æ Contact Information – www.Gharkakhana.com; Payal@gharkakhana.
com; +124 – 1234 5678; 1 800 1234 5678
Æ What problems are we trying to solve?
Working professionals, especially the ones where both husband and wife
are working, are way too tired to prepare food for themselves on daily basis
due to lack of time, lack of energy, lack of enthusiasm or combination of all
of the above. The problem becomes bigger when there are more members
in a family and/or they have a child. Good eating habits take a hit, eating

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outside becomes a norm, and fast food becomes one’s regular food
impacting health and well-being in long run.
Æ What is our solution?
Our company. “Ghar Ka Khana” (Home Cooked Food) aims to provide
vegetarian meals, cooked in a homely manner, using less oil and
spices, using high-quality ingredients and fresh fruits and vegetables.
The food will be delivered daily, at the location and time preferred by
the customer.
Æ Who are our customers?
The customer’s profile includes office going professionals who are not
able to cook at home due to number of reasons but long for a basic
home cooked meal, as well as, groups who want wholesome meals
delivered for their meetings / conferences or parties.
Æ How do you approach your customers?
We publicise our product to reach our prospective customers through
mix of pamphlets, and hoardings near office buildings and on public
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transport. We also crate campaigns on social media and have a good

website to disseminate information and place orders.
Æ What kind of competition exists in the market?
There is no competition in this segment. At present there are restaurants,
take away, or mobile kitchens that do not do direct delivery to the
 client. Also, hygiene, quality of ingredients and home-like-taste seem to be
big issues with them.
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The combination of reasonable price, home style cooking, guaranteed

wholesomeness and delivery at your doorstep at the time you desire is a sure
shot winner
Æ What is the market size?
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Currently there are approximately 3,50,000 office goers coming to Gurgaon

every day in the normal day-shift. Even if we take 10% of this work force that
will need such a service, it is a good 35,000 people per day. If again very
conservatively we capture 5% of this market, we are looking at 1750 meals per
day. At an average of Rs. 80 per meal that would be a revenue of Rs. 1,40,000
per day and ~ 30 lacs per month.
Further, this market is increasing.

Æ What are the plans for expansion?

In about a years’ time in the business, we have plans to expand our reach from
Gurgaon to the entire NCR region which has a workforce of approximately 1.5
million people. This will require us to more kitchens in other satellite towns
of Delhi. We plan to be a 10 Crore company within the first 3 years of our
operations.
Æ What are your working capital requirements?
Typically, our working capital requirements include the money required for
say, the next 3 months, to keep the business going. It is the addition of both
Direct and Indirect costs on the P&L Sheet excluding the material cost and
depreciation. If we look at the P&L sheet for our Industrial Kitchen, then for
the entire year our capital requirement come to around ₹8,16,000. To this we
can add some more capital for raw material though that should be balanced
out with our payables. So, for 3 months running, our business will require a
working capital of around ₹2,75,000.
Æ What is the Capital expenditure (CapEx)?
This is the cost of machinery / fixed assets that are needed for starting the
business. Typically, it is required before the business gets operational. For our
Industrial kitchen it the Material cost on P&L which is ₹3,00,000
Æ What is your business type?
At present it is sole proprietorship. We will be looking to add partners after 2
years in operation.
Æ What is your current area / geography of Operation?
As mentioned earlier, it is currently targeting working professionals in and
around Gurgaon. Within 3 years of operation, we plan to cover the entire NCR.
Æ Does your organization have any outstanding loans?
Yes, a long term ₹5,00,000 loan from a bank. Planning to raise an investment of
₹1.5 Crores in about an year’s time to set up additional kitchens.
Æ What kind of compliances you need to adhere to?
The usual ones related to the food industry, like
T Fire and health
T FSSAI
T Electricity and water connection for commercial establishment
T Govt. regulations for having more than 10 employees like PF, ESI
etc.
Æ What are your sources of funds?
Share capital of ₹2,00,000 and a bank loan of ₹5,00,000
Æ Infrastructure and Resource details
T Kitchen area – 5000 Sq. Feet
T An industrial gas connection
T A commercial water connection
T A commercial electricity connection for 15 MW
T 1 Chef, 2 cooks, 4 helpers, 4 delivery staff, 2 guards, and a manager
T Raw material on daily basis
Æ Administration
Standard house-keeping covering receivables, payables, HR, Accounts

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management etc.

2. Remind the students of your class, the elements to be kept in mind

while making the business plan. Now ask them to create and present
their business plans in accordance with step 3 in front of the class.

Facilitators’ Note

After they present the business plan one by one, ask:

Æ How do you usually feel when you give presentations (nervous, hot,
excited, relaxed)?
Æ How did you feel during your presentation today? Why did you feel this
way?
Æ What are the biggest challenges you face while giving presentations?
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Ask the participants to regularly practice giving presentations to overcome

the challenges they face. Ask them to refer to Step 3 regularly, this will help
them think in sequence, while practicing will make them more confident
about themselves helping them understand when and what to speak
without hesitation.
PAGE 210
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Conclusion
By now, you are well aware of the importance of an effective presentation.
The purpose of a presentation is to engage its audience, alter its opinion,
and steer it toward the natural conclusion of the presentation, which is to
act upon the ideas that have been put forth. An entrepreneur needs to meet
people and pitch ideas about his products/services on a regular basis.
Being able to present an idea effectively is crucial to any business process.
An entrepreneur must update her/himself, keep practicing and upgrading
their skills and learn to give effective presentations with the use of a proper
sales pitch.
 Module 6
Understanding the
Ecosystem
MODULE 6 SESSIONS 2 hours Pg. 211

6.1 Govt. Scheme and Programs 1.5 hours Pg. 212

6.2 Steps to Set up your Enterprise 30 mins Pg. 219

 Session 1
Govt. Scheme and Programs
PAGE 212
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Classroom session Handouts 1.5 hrs

Aim of the Session

This session introduces the participants to the initiatives of
Government, support entrepreneurs over the years..

Session Objective
To introduce participants to various schemes and programs of the
Government for Entrepreneurial aid.
 Expected Outcomes:
Participants are provided with a list of government organisations and
initiatives that may be reached for technical or financial support

The government, for a long period of time, has had its focus on the
development of entrepreneurship. A number of national and district
level institutions have been set up to promote entrepreneurship through
education, mentoring, and support. Some of these include:
1. National Institute for Entrepreneurship and Small Business
Development (NIESBUD)
2. Indian Institute for Entrepreneurship (IIE)
3. National Institute for Micro, Small and Medium Enterprises (NIMSME)
4. District Industries Corporation (DIC)

Institute for Entrepreneurship and Small Business Development

(NIESBUD)
The National Institute for Entrepreneurship and Small Business Development
is an apex organization under the Ministry of Skill Development and
Entrepreneurship, Government of India engaged in Training, Consultancy,

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Research and Publication, in order to promote entrepreneurship. It is based
in Noida and has a Regional Centre in Dehradun.

Indian Institute for Entrepreneurship (IIE)

The IIE is an autonomous organization under the Ministry of Skill Development
& Entrepreneurship. The main aim of the Institute is to provide training,
research, and consultancy activities in Small and Micro Enterprises (SME),
with special focus on entrepreneurship development. The Institute is based
in Guwahati.

District Industries Centres (DIC)

The 'District Industries Centre' (DICs) programme was started by the central
government in 1978 with the objective of providing a focal point for promoting
small, tiny, cottage and village industries in a particular area and to make
available to them all necessary services and facilities at one place. DICs
extend their help to entrepreneurs by providing the benefit of government
schemes to them and also perform centralization of procedures required to
start a new industrial unit and minimization of the efforts and time required
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to obtain various permissions, licenses, registrations, subsidies etc.

National Institute of Micro, Small and Medium Enterprises (NIMSME)

The NI-MSME was originally set up as Central Industrial Extension Training
Institute (CIETI) in New Delhi in 1960, a department under the Ministry of
 Industry and Commerce, Government of India. The Institute was shifted to
Hyderabad in 1962 and renamed as the Small Industry Extension Training
(SIET) Institute.
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Entrepreneurship Development Institute of India (EDII)

Entrepreneurship Development Institute of India (EDII), set up in 1983, is
sponsored by apex financial institutions. EDI has helped set up twelve state-
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level exclusive entrepreneurship development centres and institutes. It has

taken entrepreneurship to a large number of schools, colleges, science
and technology institutions and management schools in several states by
including entrepreneurship in their curricula.

How to approach these institutions?

These institutions can be reached through a number of ways for the purpose
of learning more about entrepreneurship, their functions, and/or enquiring
about their upcoming programs. Some methods of approaching these
institutions are through their:

Æ website
Æ phone number
Æ fax
Æ social networking platforms
Æ walk-ins
Æ entrepreneurial networks etc.

ACTIVITY 1 : APPROACH THE INSTITUTE

Material Required
Student’s mobiles/tabs/laptops or they may borrow one if needed,
paper and pen.

Process
Æ Ask the students to visit the website of anyone of above institutions
and write down what they do. If possible, ask them to visit in groups
any institute which is in their vicinity and find out more about the
programmes and support they offer for entrepreneurs.
Æ After the activity, ask them to share what they learnt in class.
 Current State of Entrepreneurial Promotion

Entrepreneurial Finance may be obtained from:

Æ Government of India – Department of Financial Services (DFS) through
institutions like SIDBI, MUDRA BANK, NABARD etc.
Æ Others finance options – Venture Capitalists, Angel Investors, Impact
Investors

You can find out about Government Policies from:

Æ Central Government – Department of Promotion of Industry and Internal
Trade (DIPP), NITI Ayog, Ministry of Finance, Micro Small and Medium
Enterprises (MSME) etc.
Æ State Governments – Related state government departments.

Entrepreneurship Programs are run by:

Æ Central Government – Department of Financial Services (DFS), NITI
Ayog, Ministry of Skills Development (MSDE), MSME, DIPP, Department
of Science and Technology, (DST), etc.
Æ State Governments – Department of Industries and other stakeholder
departments
Æ Others – Regional and Other bodies and institutions, Mentors, Retired

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Entrepreneurs, Researchers, Bankers etc.

Definition of MSMEs

Manufacturing Enterprises – Employing Plant and Machinery

Æ Micro – Investment up to 25 lacs
Æ Small – Investment from 25 lacs up to 5 Crores
Æ Medium – Investment from 5 Crores up to 10 Crores

Service Enterprises – Providing or rendering Services

Æ Micro – Investment up to 10 lacs
Æ Small – Investment from 10 lacs up to 2 Crores
Æ Medium – Investment from 2 Crores up to 5 Crores

Financial institution helping MSMEs

Æ Small Industries Development Bank of India (SIDBI):
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Æ Minimum loan size is 10 lacs for equipment.

Æ Others – 25 Lacs.
Æ Corpus – 10,000 Crores.
 Also,
Æ NBFCs and
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Æ Micro Lending Development Department

Æ Nationals Bank for Agriculture and Rural Development (NABARD):
T Loans for Food Parks and Food Processing Units in Designated
Food Parks
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T Loans to Warehouses, Cold Storage and Cold Chain Infrastructure

Æ Rural Infrastructure Development Fund
Æ Credit Facilities to Marketing Federations
Æ Pradhan Mantri Aawas Yojana - Grameen (PMAY-G)
Æ Direct Refinance Assistance to Co-operative Banks

Mudra Yojana
MUDRA – Micro Units Development & Refinance Agency.
The funding support from MUDRA includes :
Æ Micro Credit Scheme (MCS) for loans up to 1 lakh finance through MFIs.
Æ Refinance Scheme for Commercial Banks / Regional Rural Banks
(RRBs) / Scheduled Cooperative Banks
Æ Women Enterprise programs
Æ Securitization of loan portfolio

Refinance Schemes:
Æ Shishu – ₹10,000 to ₹50,000
Æ Kishore – ₹50,000 to ₹5 Lakh
Æ Tarun – ₹5 Lakh to ₹10 Lakh.

Prime Minister’s Employment Generation Program (PMEGP)

This scheme is implemented by Khadi and Village Industry
Commission (KVIC).
The loan limits are:
Æ Manufacturing Sector – Up to 25 Lacs
Æ Business/Service Sector – Up to 10 Lacs

Rate of subsidiary
Æ Urban – General – 15% and Special – 25%
Æ Rural – General – 25% and Special – 35%
Æ Special includes SC/ ST/ OBC/ Minorities/Women, Ex-servicemen,
Physically handicapped, NER, Hill and Border areas, etc.
 Who can apply?
Æ Any individual, above 18 years of age.
Æ At least VIII standard pass for projects costing above Rs.10 lakh in the
manufacturing sector and
Æ above Rs. 5 lakh in the business / service sector.

Where to apply?
Æ https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
Æ Submit printout of the application along with Detailed Project Report
and other required documents in DIC office

Start Up India (https://www.startupindia.gov.in)

Æ Up to a period of ten years from the date of incorporation/registration
Æ Incorporated as either a Private Limited Company or a Registered
Partnership Firm or a Limited Liability Partnership
Æ With an annual turnover not exceeding Rs. 100 crore for any of the
financial years since incorporation/registration
Æ Entity should not have been formed by splitting up or reconstruction of
a business already in existence

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Æ Working towards innovation, development or improvement of products
or processes or services, or if it is a scalable business model with a high
potential of employment generation or wealth creation
Æ Self-Certification: Self-certify and comply under 3 Environmental &
6 Labor Laws
Æ Tax Exemption: Income Tax exemption for a period of 3 consecutive
years and exemption on capital and investments above Fair Market
Value
Æ Easy Winding of Company: In 90 days under Insolvency & Bankruptcy
Code, 2016
Æ Startup Patent Application & IPR Protection: Fast track patent
application with up to 80% rebate in filling patents
Æ Easier Public Procurement Norms: Exemption from requirement of
earnest money deposit, prior turnover, and experience requirements in
government tenders
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Æ SIDBI Fund of Funds: Funds for investment into start-ups through

Alternate Investment Funds
 Government Initiatives for Export Entrepreneurship
Æ Market Development Assistance Scheme – Funding up to 90 per
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cent in respect of to and fro air fare for the participation by MSME
entrepreneurs in overseas fairs/trade delegations.
Æ Market Access Initiative (MAI) Scheme – It involves for financial
assistance - marketing projects abroad, capacity building, support for
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statutory compliances, studies, project development.

Æ Software Technology Park (STP) Scheme – All imports of hardware and
software in STP units are completely duty free and approvals are given
under single window clearance mechanism.
Æ Export Promotional Capital Goods (EPCG) Scheme – Allows import of
capital goods for preproduction, production and post-production at
zero customs duty.
 Session 2
Steps to Set up your Enterprise

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O DOLO ALS REQ RATION
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Lecture Handout of list 30 min

Aim of the Session

Giving information about things to set up when beginning a new
enterprise

Session Objective
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Providing the participants with a list of things to do immediately

after they set up an enterprise
 As soon as you decide to become an entrepreneur and start a business, you
are required to take a number of steps and fulfil certain formalities. These
are as follows:
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Scanning of Business Environment: it is essential that the entrepreneur

study and understand the prevailing business environment. Entrepreneurs
should scan the business environment for opportunities and threats and
study the administrative framework, procedure, rules and regulations and
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other formalities implemented by the government.

Selection of the Product: You need to have clear idea of the type of business
you want to run.

Selection of Form of Ownership

Æ Proprietorship/Sole Tradership
Æ Joint Hindu Family
Æ Partnership
Æ Co-operative Society /Trust
Æ Private Limited Company/Limited company

Selection of Location and Site

Location is selected after considering certain factors such as proximity to
market, sources of material and labour, modern infrastructure facilities etc.
The entrepreneur must choose a suitable place for her business /plot for
the factory. S/he may purchase land directly or choose from an industrial
area developed by State Development Corporations

Designing Capital Structure

Apart from own capital, s/he may secure finance from friends and relatives,
term loans from banks and financial institutions.

Acquiring Manufacturing Know-How or Technology

Many institutions of government, research laboratories, research and
development divisions of big industries and certain consultancy agencies
provide the manufacturing know-how.

Preparation of Project Report

The report usually covers important items like sources of finance, availability
of machinery and technical know-how, sources of raw material and labour,
market potential and overall profitability.
 Registration as a Micro/Small Scale Enterprise
Registration with UDYAM is optional. There is no statutory obligation, but
micro/small scale industries can avail various facilities, incentives and
concessions offered by the state as well as central government if they
registered as MSMEs. The registration can be done via their site, https://
udyamregistration.gov.in/Government-India/Ministry-MSME-registration.
htm.

Obtaining Statutory License

Any person should obtain the following licenses and certificates before
starting the venture.
A. License from Local Bodies for
T Construction of building
T Installation of plant and machinery.
B. License from the Directorate of Factories and Boilers for boiler
based industries
T Approval of factory building.
T Registration under section 6, 7 and 85 of the Factory Act.
C. No Objection Certificate from State Pollution Control Board for

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orange/red category industries.

Apply for a Power Connection

There are 2 categories of power, the Low Tension (LT) and High Tension
(HT). A consumer can avail LT only if the connected load is 75 HP and below.

Arrangement of Finance
Entrepreneurs need assistance to acquire fixed assets as well as current
assets. Long term finance is needed to acquire fixed assets like land,
building, plant, and machinery and for security deposits. Short term funds
are required for acquiring current assets. Current assets are essential for
the day to day working of the business. Long term funds includes owner’s
capital, subsidy from central/ state govt., personal borrowings from friends
and relatives and long term loans from financial institutions. There are Govt.
schemes like MUDRA, CGTMSE & PMEGP where in you can get the loan
without third party security
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Registration under GST

All the businesses supplying goods whose turnover exceeds INR 40 lakh in
a financial year are required to register as a normal taxable person. However,
 the threshold limit is INR 10 lakh if you have a business in the north-eastern
states, J&K, Himachal Pradesh, and Uttarakhand.
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Sales Tax Registration

Sales Tax Registration is required if the annual turnover of the business
crosses Rs. 5 lakhs in most states, though some have raised this threshold
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limit to Rs. 10 lakhs.

Installation of Machinery: Machinery should preferably be installed as per
the plant layout.

Recruitment of Manpower
The number and type of workers should be decided after a careful evaluation
of needs and resources available with a firm. After this, the required workers
may be recruited.

Procurement of Raw Material

Raw materials may be procured indigenously or may have to be imported by
the entrepreneur. The next step is to start production, which is taken up in two
stages - Trial production and Commercial production. Having successfully
test marketed the product, commercial marketing can be undertaken.

About micro, small, and medium enterprises (MSME)

Small businesses are playing an important role in the industrial economy of
the world. These are particularly important in the developing economies.
They are predominant, however, even in developed countries such as USA,
Japan etc.
The micro, small and medium enterprises (MSME) development act, 2006:
Under this act, the central Government shall set up, for the purpose of the
act, a Board known as the National Board for Micro, Small and Medium
Enterprises.

Classification Of Enterprises (New Definitions)

In Case of Manufacturing Enterprise:

Æ A micro enterprise is one in which the investment in plant and machinery
does not exceed Rs.25 Lakhs.
Æ A small enterprise one in which the investment in plant and machinery
is more than Rs.25 Lakhs but does not exceed Rs. 5 crores.
Æ A medium enterprise is one in which the investment in plant and
machinery is more than Rs. 5 crores but does not exceed Rs. 10 crores.
In Case of Service Enterprises:
Æ A micro enterprise is one in which the investment in plant and machinery
does not exceed Rs. 10 lakhs.
Æ A small enterprise one in which the investment in plant and machinery
is more than Rs. 10 lakhs but does not exceed Rs. 2 crores.
Æ A medium enterprise is which the investment in plant and machinery is
more than Rs. 2 crores but does not exceed Rs. 5 crores.

Advantage Of Msmes:
1. They are relatively more environmentally friendly.
2. They are generally based on local resources.
3. They provide ample opportunities for creativity and experimentation.
4. They facilitate equitable distribution of income and wealth.
5. MSME enjoys government support and patronage.
6. They help in the balanced regional development.
7. It is easier to make necessary changes as and when required.
8. They keep the market competitive.
9. There is a close and direct personal contact with customers and
employees.
10. They create employment opportunities, are labour intensive, and offer
ample scope for self-employment.

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11. They require less capital. This is a boon to a country like India where
capital is deficient.
12. MSME can satisfy individual tastes and offer personalized service to
the customers.

Udyog Aadhar Registration

With a view to promote ease of doing business, the Ministry of Micro, Small
and Medium Enterprises, Govt. of India has come out with one-page Udyog
Aadhaar Memorandum, which can be filled now on by the Micro, Small and
Medium Enterprises online. Existing business with MSME registration or
small scale industry registration are not required to obtain Udyog Aadhaar.
However, they may also obtain a Udyog Aadhaar, if they desire so.
The online Udyog Aadhaar registration process has been created with an aim
to encourage online filing of entrepreneurs Memorandum for Micro, Small
and Medium enterprises. In the form, the MSME will self-certify its existence,
Bank account, business activity details, employment and ownership details
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and other information.

Documents and information required for online Udyog Aadhaar registration:

1. Aadhaar Number – (12-digit Aadhaar number issued to the applicant)
 2. Name of the owner – (The applicant’s name as mentioned on the
Aadhaar card issued By UIDAI)
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3. Social category – Applicant caste: General / SC / ST /OBC (The

proof of belonging to SC,STor OBC may be asked by the appropriate
authority, if and when required)
4. Name of the Enterprise – (Name of the legal entity to conduct
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business. One applicant can have more than one enterprise doing
business and each one can be registered for a separate Udyog Aadhaar
with the same Aadhaar number)

5. Type of organization – (1. Proprietership,2. partnership firm, 3. Hindu

Undivided family, 4. Private Ltd. Co., 5. Co-operative, 6. Public Ltd. Co.,
7. Self Help Group, 8. Others (Limited Liability Partnership)
6. Postal address – (Address of the business including Mobile and
e-mail address)
7. Date of commencement – The date on which business was started)
8. Previous Registration Details – (Details of previous MSME
registration, if applicable should be entered here)
9. Bank details – (Details of Bank account of the Company including
IFSC code and Bank account number)
10. Major activity – (Major area of activity of the business-manufacturing
or service)
11. NIC Code – (The appropriate NIC code should be entered from the
National Industrial Classification (NIC) Handbook)

12. Persons employed – (The total number of people employed in the

business)
13. Investment in Plant & Machinery / Equipment – (Amount of money
invested in terms of Machinery and Equipment by the business)
14. DIC – (Details of the District Industry Centre nearest to the business, if
required)
 ENTREPRENEURSHIP DEVELOPMENT PROGRAM (EDP) – FACULTY HANDBOOK
Entrepreneurship Development
Program (EDP)
National Institute for Entrepreneurship and Small Business Development
Noida Office: A-23, Sector-62, Institutional Area
Noida - 201309, NCR of Delhi, U.P, India
FACULTY HANDBOOK