SomReP Business Skills Curriculum

SOMREP Business skills curriculum

6) Have all groups present their ideas by reading out loud what they have written on their
piece of flip chart.

7) Encourage participants to share their thoughts and to discuss them with each other
throughout the presentations. The goal of these presentations is not to identify the right
or wrong ways to react. The goal is to explore how emotions influence problem solving

8) Give participants several minutes to think about these questions individually.
9) Divide participants into small groups. Invite participants in each group to share their

experiences with each other. Encourage them to share how they felt and how their
feelings influenced their reactions. Give the groups enough time.
10) Explain to participants that:
When we are upset, our emotions often lead us to react automatically. At times such as these,
we often act without thinking about what will happen as a result. It takes a great deal of
practice to think clearly about the best solutions when we are emotional.
Managing emotions is often easier when we can talk to a friend about how we feel and what we
should do. It is often good to get someone’s opinion on a situation. The purpose of this activity
was to discuss emotions with each other and learn from each other’s experiences.”

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SESSION 4: PROBLEM SOLVING AND TIME MANAGEMENT
Time - 1 hour
Objectives

➢ Identify and understand time management skills.

Materials
➢ Flip chart paper and markers
➢ Flip chart with three situations written out.

Handout 11: Time Management for Business people.
➢ A glass or plastic jar.
Big stones, small stones and sand or gravel.

Training aids
➢ Prepare flip chart with three situations written out.
➢ Make copies of Handout 11: Time Management for Business people

Facilitation Steps

Start the training with a demonstration. Hold up an empty glass or plastic jar. Take a few big
stones and place them one by one into the jar until you can’t fit any more. Ask the group: “Is the
jar full?” They will respond: “Yes.” Question their answer: “Really?”

Take a few smaller stones and place them in the jar in the empty spaces between the big stones.
Ask again: “Is the jar full now?” Participants will possibly catch on and say: “No!” Take sand or
gravel and pour it into the jar, until the jar is completely full

1) Explain “One thing this shows us is that if you don’t get the big stones in first, you’ll never
get them in at all. What do you think this message has to do with the topic we’re talking
about today, time management?”

2) Allow participants time to respond. Then explain: “The big stones represent the most
important things we have to do. If we don’t do these things first, we may never find the
time to do them. The small stones are the things in our lives that are less important to do.
We can fit these things in after we’ve taken care of the big things.”

3) Ask participants for examples of things that might be ‘big stones’ or important things to
do? What about ‘small stones’ or less important things?

4) Explain: “There is one challenge that is very common when running a business. It is
managing time. Let us look more closely at this type of challenge.”

5) Bring out the flip chart prepared with the situations. Read the three situations as a group.

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6) Divide participants into three groups. Give each group one of the situations. Ask each
group to prepare a short role play of the situation and a possible solution

7) Give the groups about 10 minutes to prepare. Then ask them to present their role-plays to
each other.

8) After the role plays are finished, ask participants the following questions and write their
answers on a flip chart.

9) What are some things you can do to manage your time between your business and the
other things in your life? Answer: Write lists, keep a weekly diary, schedule meetings and
appointments

10) Why is it important to reserve time in the day for work, leisure and rest? Explain that
balance is important to ensure that things do not get too overwhelming. You should take a
break from work sometimes.

11) Give out copies of Handout 11: Time Management for Business people and ask
participants to follow as you read it out loud.

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Handout 11: Time Management for Business people
By Estela Kennen

Prioritizing. People really can't do everything, and shouldn't feel like they have to. People should
feel free to try new things, but shouldn’t say yes to every opportunity that comes their way.

Having a System. You'll be amazed how much time is gained when you are organized, and don’t
have to search for lost things, or when you know exactly what your plans are ahead of time. It
helps to plan and organize everything—from training assignments, to buying products for your
business to what clothes you will wear – the night before. Having – and sticking to-- a color-coded
schedule for every day of the week is also very helpful. Make your schedule at the beginning of
the week and follow it throughout. Penciling in time for food, friends and fun is important too.
Reward yourself for sticking to your schedule and meeting your goals by going to the market with
a friend or watching a football match.

Just Doing It. Sometimes people get nervous about all the things they have to get done, and end
up spending two hours [chatting] instead of working. Then people stress about how now they
really don't have time to finish anything, which just leaves them feeling anxious and drained. In
other words, procrastination is one of the biggest obstacles to good time management. It takes
will power to stop this cycle, but doing so will make each day go a lot smoother. People need to
learn not to spend time and energy stressing over how they have no time - just do what needs to
get done

Taking Care of Oneself. Yawning during work. Glazed eyes at the dinner table. In attention at
Mosque. Chances are that people like this are not taking good care of their bodies. But the fact is
that most people feel sharper and more energetic – in other words, are able to do more stuff in
the same amount of time—when they give their bodies enough rest and the right kind of fuel.

Making it a habit! Sticking to a schedule can be tough at first, but it's worth the trouble. After
about three weeks of following a time management system, it will become second nature.

12) Review the activity by asking each participant the following questions.

From everything we discussed in this activity, what is the one idea that you are most likely to use
when running your business?

SESSION 5: MULTIPLE SOLUTIONS
Time - 30 minutes

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Objectives

➢ Learn about possible business challenges.
➢ Identify possible solutions to these challenges.

Materials

➢ Handout 12: Multiple Solutions – Chair Game Questions.
➢ Chairs.

Facilitation Steps

1) Explain to participants: “Sometimes, dealing with business challenges could be easier if
you first think about what kinds of problems there could be. So let think of some problems
together.”

2) Invite participants to play a game. Explain that this game will introduce some challenges
that they might face in business. It will also give them a chance to develop possible
solutions.

3) Ask participants to arrange their chairs so they are back-to-back and in a row. If chairs are
not available, use objects to mark participants’ places. Remove three chairs from different
places, now there are three more participants than chairs or spaces.

4) Explain the game to participants: “I will start by clapping my hands. Participants walk
around the chairs. When I stop clapping, participants find a chair and sit down.”

5) There will be three people who cannot find a chair and are left standing. Read them a
question, found in Handout 36: Multiple Solutions – Chair Game Questions, about a
challenging situation that they may encounter when running a business.

6) Each person standing suggests a possible solution. Each solution should be different. If
necessary, these participants can ask everyone for ideas. Once an answer has been given
ask other participants if anyone has a different solution, allow one other solution to be
presented if there is one. When they have finished answering ask the three participants to
sit on the side.

7) Next, remove three more chairs from the row. Repeat the clapping and stopping so three
more participants are left standing and ask them three more questions. When they have
finished answering ask them to join the others at the side. Continue the game until all the
questions have been asked.

8) To allow the participants who are out at the side to continue to participate, ask them to
form a jury and judge the answers given.

9) After the game is finished, review the activity using the questions below. What did you
learn from playing this game?

10) Do you think a problem can have one solution or many solutions?

11) How did it feel when your friends helped and supported you?

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12) Using participants’ answers help them to understand that there usually is more than one
way to deal with a problem or challenge. Remind them that friends and mentors can be
very helpful in thinking of possible solutions.

Handout 12: Multiple Solutions Chair Game

SESSION 6: FAMILY AND BUSINESS
Time - 1 hour 30 minutes

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Objectives

➢ Consider the positive and negative interactions between our business or work, family and
community members.

➢ Brainstorm solutions to selling on credit.

Materials

➢ Handout 13: “It is for Free” Skit.

Facilitation Steps

1) Tell the participants that small business owners are closely linked to each other, to their
families and their communities. Just like by completing this training together, they will
become interconnected.

2) Divide the participants into groups of five or six. Ask each group to stand in a circle.

3) Explain: “Look and remember who is standing next to you. Now, everyone in the group
hold hands. BUT you cannot hold hands with the person next to you. You can move
around to hold hands with the others in your group.”

4) When all participants are holding hands in their groups, explain: “Without letting go of the
hands you are holding, try to get back into your original circle. You will need to get tangled
to do this!”

5) After a few minutes stop everyone moving, explain: “Now, again without letting go of the
hands you are holding, untangle yourselves!”

6) After all the groups finish playing the game, ask the following questions. Help participants
reflect on how they worked together as a team. How did you manage to get untangled?
What helped you do this?

7) Explain: “Now we are going to continue talking about the interconnectedness of
businesses, their owners, the family and their communities.”

8) Ask for four volunteers to come to the front of the room and perform a skit. Give each
performer a copy of Handout 37: “It is for Free” Skit and allow them a few minutes to
select their parts, go over the lines and prepare.

9) After the skit, explain: “The extended family is often very important in both rural and
urban areas. In the skit the carpenter cannot collect what people owe her, particularly
from her family. Her uncle wants free furniture. Relatives are the ones who have so often
helped us out in the past and may have to do so again in the future. Should we refuse to
give things for free to relatives or refuse to give them credit?”

10) Remind participant that it is true that the family makes sacrifices to bring up the children
and in return expects help from them. As soon as their business starts to make a profit
relative will approach them, seeking assistance. They will appeal very much to their sense
of obligation. This can be extremely dangerous for the business if not handled properly.

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11) Ask participants if they know of such examples from their own experiences or from their
neighbors or relatives. Allow time to discuss.

12) Explain: “Problems related to conflicts involving the business, the individual, the family
and the community are complex. There is no magic solution. We must think about this
together. When an attitude is deeply rooted in culture, changing it is always a slow
process. However, since we are agents of change, we should start creating change
immediately.”

13) Also explain that the closeness of family or village relationships has positive elements to it.
We should turn these positive elements, and this valuable sense of community, to the
advantage of the business.

14) Ask participants to think of possible solutions and strategies to these challenges. Let the
participants discuss among themselves for a few minutes and then present their ideas.
Allow plenty of time for participants to discuss possible solutions or strategies.

15) Conclude this activity by reassuring participants that this is just the start of this
conversation and that they are going to continue discussing potential solutions to these
challenges. Tell them that they will develop new skills that will allow them to untangle
themselves from the web of potential problems like they did in the opening activity so
they can manage their business effectively as well as their relationships with their family
and community.

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Handout 13: It is a Free Skit

Recap
Read the closing questions to the group, allowing time for participants to reflect and respond.

✓ What are some of the things we learned in this unit?
✓ How will you use these skills in your life and/or business?

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CHAPTER 3

BUSINESS EXPANSION MODULE

Module Units Session Duration

Business Introduction Why Expand the Business? 1 hour
Expansion to business Ways of Expanding a Business: An 1 hour 30 minutes
expansion Entrepreneurs Checklist
Business Expansion from Local to Global 1 hour
Making Introduction to investment decisions I hour
Business How small business owners should make I hour
Investment investment decisions
Decisions How small business owners should I hour
evaluate investment decisions

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UNIT 1: INTRODUCTION TO BUSINESS EXPANSION

SESSION 1: WHY EXPAND THE BUSINESS
Time - 1 hour

Objectives
➢ Introduce ourselves to the reasons why businesses expand

Materials
➢ Flip chart paper and markers
➢ Handout 1: Realities of Expanding a Business

Facilitation Steps

1) Welcome participants to this session
2) Articulate that at times businesses require to expand so as to meeting needs of the

customers
3) Ask participants to cite examples of businesses that in the local community have

expanded and how.
4) Explain:

a) The entrepreneur is that endless challenge seeker. Once their small business is
humming along, growth is the next exciting challenge.

b) Exciting, yes - but at the same time growth can make good business sense - better
brand recognition, building value in the business for employees and customers,
offering a wider range of products and services to a larger geographical market,
and creating "economies of scale."

c) Rationalizing the rewards of a bigger business means tuning up your business plan
writing skills again.

d) You will need to update the record, marketing and financial plans, and strategize
an expansion implementation plan.

e) You will also need to carefully weigh the risks and rewards for growth.

f) Perhaps you don't have to figure everything out from scratch. Look to a business
in your industry for best practices and draw on knowledge of others that have
gone before you.

9) Explain:

a) Business expansion and growth require careful planning. You cannot simply wake
up one day and decide that you will open a second or third store, or increase your
product line outright.

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b) The decision to extend the scope of your business must be a result of thoughtful
consideration of various factors, including the financial, logistical, even your
emotional readiness.

c) The rule of thumb is that you should only expand when there are untapped
opportunities that can benefit your business. There may be a niche that you want
to capture; or a location not serviced even by your competitors.

d) Expanding operations does not always mean more profit. You may be doing more
volume by adding a second and third store and working harder, but with the
additional overhead, you may not make any more money.

Provide Handout 1
Handout 1: Realities of Expanding a Business
➢ Businesses are supposed to grow over time so as to capture new opportunities, markets and customers.

Expansion may increase of goods and services sold, but can also refer to opening new stores within the
local community or in far away towns.
➢ Business people are always eager to expand and grow; but at the same time growth can make good
business sense - better brand recognition, building value in the business for employees and customers,
offering a wider range of products and services to a larger geographical market, and increasing trade
volumes.
➢ Before you expand, there must be an opportunity to be exploited.
➢ Expansion can lead to loss!
➢ Therefore, expanding operations does not always mean more profit. You may be doing more volume by
adding a second and third store and working harder, but with the additional overhead, you may not
make any more money

SESSION 2: WAYS OF EXPANDING A BUSINESS: AN ENTREPRENEURS CHECKLIST
Time: I hour 30 minutes

Objectives

➢ Understand the critical factors to consider before business expansion
➢ Gauge the entrepreneur’s preparedness before considering expansion

Materials

➢ Flip chart paper and markers
➢ Hand out 2: 6 point Checklist

Facilitation Steps

1) Explain to participants: “Tit is important to consider key factors before thinking of
expansion; and expansion will attract costs, investments and income too”

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2) Take participants through the checklist

3) Discuss each of the following points and pick examples from the local business
community.

a. Point 1: Will the business benefit from more customers, hence more sales as
result of expansion?

i. As your business increases in size, costs per unit fall, resulting in lower
prices or higher profit – or both. You should only expand if your business
will sell more products products or services at lower prices or to take
more profit per item.

ii. By growing your business, you may be able to buy more. Instead of buying
for a single store, you are now buying for two or three stores. Such high-
volume purchases will allow you to get lower prices for everything from
raw materials to transportation, and warehouse space – even cleaning
services.

iii. You may also be in a better position to defend your business against price-
cutting by your competitors. As you branch out to other markets, you may
be able to sell more and increase your sales. Larger sales volume will allow
you to offset lower per-unit profit.

iv. Your business may also benefit from having more resources, in terms of
bigger and better premises, increased marketing resources and added
product features that provide more value for customers. Your
administrative costs-per-unit should also come down, as the costs like
advertising, purchasing and other functions are spread among all your
locations and products.

b. Point 2: Are your competitors expanding?

i. Market information should play a key part in your decision to expand your
business. You may be able to get important clues about the market, and
some indication about your competitor’s situation. Getting information
about your competitors can give you the leading edge, as it can show you
ways in which your company benefit the customer and be unique.

ii. If your competitors are increasing their operations, it may mean that they
have seen new, untapped opportunities in the market. Your competitors
may have stumbled upon a good idea. If this is the case, you can do two
things: wait and see how the competitor does, or follow the competitor’s
lead.

iii. By waiting for the results of a competitor’s venture into a new area, you can
verify for yourself whether demand really exists and the benefits outweigh
the risks. Following your competitor’s lead does not necessarily mean that
you have to duplicate exactly what they are doing. Instead, you can use

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their ideas to stimulate your own thinking.

iv. If your competitor’s expansion proved to be a mistake, then you can thank
your lucky stars that it was not your business that was burned in a costly
misjudgment.

c. Point 3: Can you finance the expansion internally?

i. Before deciding, you need to study carefully the financial benefits of such
an expansion, and whether your cash flow can support the additional
investment. It is important to determine where and how you will get the
money to pay for the additional inventory, new facilities or equipment. The
ideal situation would be to expand only when you have already proven
that demand exists for your products or services, as proven by your fat
bottom line.

ii. If you need additional capital, whether a loan from the bank make sure that
the new venture will be profitable enough to allow you to earn money and
repay the loans. Many small businesses met untimely deaths with their
aggressive growth strategy, only to find that they are buried deep in debt
with no other recourse bankruptcy or liquidate assets. Like any other
business decisions, expand only when you think you have financial
benefits to gain.

d. Point 4: Will your customers tolerate your growing pains?

i. Timing is crucial in making the decision to expand a business.

ii. A downturn in the economy, political violence, or an event can drastically
reduce consumer demand for your product. If people are not spending like
they used to, how sure are you that the limited range of their consumption
will include your products or services?

iii. Unless you have an unlimited pocket that can support expansion even
with reduced demand, make sure that the business environment can
support your expansion.

e. Point 5: Are you willing to play a less hands-on role in an expanded operation?

i. Whether you are opening an additional store or combining a brick-and-
mortar operation with an e-commerce venture, you should expect a
change in the role that you play.

ii. From a one-person business, you may begin to hire new personnel to cope
with your new undertaking. If you are opening a second store, you may
need someone to manage that store, as it will be impossible for you to be in
two places at the same time. You may need to seek the help of additional
personnel to help you run your web site while you take care of your
physical store.

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iii. When you expand your business, you should be prepared to delegate
responsibilities to others and be open to new ways of doing things. If you
are previously working solo, you now have a new hat to wear: a personnel
manager.

iv. If you are seeking expansion capital from investors and other capitalists,
you should be prepared to relinquish part, even total control, of your
enterprise. Some investors will demand equity or a say-so in the day-to-
day operation of your business. Some will even agree to fund you on the
condition that a person they recommend will run the expanded venture.

v. Given the new players in your business, you should be open to new ideas.
Your new store manager may have some suggestions on how to improve
your business.

vi. Your new set of investors may want to have inputs in the decision-making
process. These new participants in the decision-making process may come
pretty hard on you, particularly if you are one of the thousands of
entrepreneurs who think that they know their business by heart and they
(and only they) have the monopoly of ideas on how best to run it.

vii. Some entrepreneurs even have the narrow vision that they can run the
business better than anyone can.

f. Point 6: By expanding, are you diluting beyond recognition the passion that
originally started the business?

i. Business expansion that carries you far away from your original vision or
even passion may make you richer, but less happy.

ii. If you are primarily a creative person, chances are that the business of
taking care of business will take you away from some of the creative
work.

iii. Growth may force you to let go of the total design control you enjoyed
when the company was much smaller, and that may not be an easy
adjustment.

Some people say, “Growth and business expansion are not always good or desirable.” In fact,
many entrepreneurs saw their businesses crumble as a result of uncontrolled growth. Slow,
steady, and incremental growth is much better.

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Handout 2: 6 point Check list

Points Main Sub-question Tick
1. Question Yes No
Will you sell more products or services at lower prices
2. Will the or to take more profit per item?
3. business
4 benefit from Will you get lower prices for everything from raw
5 more materials to transportation, and warehouse space –
customers, even cleaning services.
6 hence more
sales as result Do you have market information about your
of expansion? competitors?
Are your Are you willing to wait to see how the competitor
competitors does?
expanding? Can you finance the expansion internally?

Can you Do you consider this the right time to expand?
finance the Can the business environment (e.g. buyer behavior)
expansion support your expansion ideas?
internally?
Will your Are you willing to delegate your managerial
customers responsibility?
tolerate your Do you know how and where to hire additional
growing pains personnel?
Are you
willing to play Do you know that business expansion that carries you
a less hands- far away from your original vision or even passion may
on role in an make you richer, but less happy.
expanded
operation? Do you know that if you are primarily a creative
By expanding, person, chances are that the business of taking care of
are you business will take you away from some of the creative
diluting work
beyond
recognition
the passion
that originally
started the
business?

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SESSION 3: BUSINESS EXPANSION FROM LOCAL TO GLOBAL
Time: 1 hour 30 minutes

Objectives
➢ Introduce ourselves to the reasons why businesses expand beyond borders

Materials

➢ Flip chart paper and markers
➢ Handout 3: What to consider in expanding beyond borders
➢ Handout 4: Rules of Exporting

Facilitation Steps

1) Welcome participants to this session

2) Articulate that at times businesses require to expand so as to meeting needs of the
customers beyond borders.

3) Ask participants to cite examples of businesses that in the local community have expanded
beyond the borders and how.

4) Explain the 7 factors to consider when expanding beyond borders:

a) Increase your sales and products in existing markets. This is obviously the easiest and
most risk-free way to expand. This tactic may require a bigger location, different pricing
strategies, new/improved marketing techniques - but it will be in a customer group with
whom you already have a relationship. If you get off track, your present customers will
let you know!

b) Introduce a New Product. You have a successful product/service that you have been
offering for some time and have been collecting data, customer feedback and doing the
fixing on your newest product. This is a normal evolution in business, not just an
expansion tactic. When positioned as adding value and being responsive to customer
needs, this can be a relatively risk-free way to expand.

c) Develop a New Market Segment or Move into New Geography. Both of these areas
require cost outlays and uncertainty. Moving your products into new categories or
demographic segments requires market research, beta testing and new marketing
strategies, i.e. a message for a 16-year old will differ that one for a 60-year old.
Management of new remote locations may absorb significant time and attention. While
the risks are more, the payoffs are large - and for most businesses looking to expand,
these two methods of expansion are inevitable.

d) Start a Chain. A restaurant, retail or service business that's easily reproduced and can
be run from a distance is all you need to launch a chain. But, you must be cognizant of
what made the first location a success - was it location, your staff or you? If it is just
you, then duplication is only possible through detailed operations plans and sharing
staff between locations. You will need to duplicate the plan of your first location while
meeting increased customer demands. Starting a chain gives your current staff a crack

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at "management" duties, training opportunities and an opportunity to expand their
horizons.
e) Franchise or License. While it's a quick way to grow, a franchise agreement can cost
something to prepare. You will need to be a good teacher, be able to prepare the
prospective manuals (preferably in more than one language), be very organized and
willing to travel. Licensing can carry less risk, but demands giving up a certain amount of
control. Licensing a patent, trademark or industrial design means that you sell
manufacturing, distribution or production rights.

f)Join Forces / Strategic Alliance. A merger or acquisition combines the best of two
companies, expands your customer base, increases intellectual capital and delivers
operational efficiencies. The trick is finding the right partner. These partners may be
new distributors, but be forewarned large retailers exact heavy performance
expectations. Can you perform to the letter of your promise? Can you meet high
standards of quality (ISO, or the like) and adapt your procedures to meet just-in-time
delivery? Due diligence and strong contractual arrangements are essential here

10) Explain the Rules of Exporting:
a) Identify the specific market niche you intend to target.
b) Be honest.
c) Be professional.
d) Be diligent.
e) Be prompt.
f) Be respectful of cultural differences.
g) Plan for long lead times.
h) Be patient.
i) Maintain your sense of humor.
j) Partner early in the process.

11) Explain the Types of Financing You May Need for Expanding and/or Exporting
a) Line of Credit
b) Medium- to Long-Term Buyer Financing
c) Loans

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Handout 3: The IFs of expanding from local to global
EXPAND IF:

1. You are sure you will increase your sales in the new market
a. Explain how this will happen
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

2. You have a successful product/service that you have been offering for some time and
have been collecting data, customer feedback and doing the fixing on your newest
product.
a. Explain how this has happened
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

3. You are developing a new market segment (e.g. women etc) in the new territory.
a. Explain how this will happen
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

4. You are going to reproduce a chain of your current operation in the new territory
a. Explain how this will happen
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

5. You are considering a joint venture, franchise agreement or a merger with another
entity
a. Explain what case applies
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

b. Explain how this will happen
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

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Handout 4: Rules of Exporting

Recap
Read the closing questions to the group, allowing time for participants to reflect and respond.

➢ What are some of the things we learned in this session?
➢ How will you use these skills in your life and/or business?

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UNIT 2: MAKING INVESTMENT DECISIONS

SESSION 1: INTRODUCTION INVESTMENT DECISIONS
Time: 1 hour
Objectives

➢ Introduce ourselves to making investment decisions for small enterprises
➢ Define investments for small enterprise
Materials
➢ Flip chart paper written” What is “To Invest”
➢ Handout 5: Introduction to making investment decisions
➢ Pens and pencils
Training aids
➢ Photocopy Handout 5: Introduction to making investment decisions

Facilitation Steps

1) Explain to participants: “In this course, you will learn the nature of business decisions
that small businesses would make for expansion”

2) Ask participants to brainstorm on the meaning of the word “investment”.
3) Summarize the meaning by the following statements that you have pre-written on the

flip chart

What is “To Invest”
✓ To invest is to allocate money (or sometimes another resource, such as time) in the expectation of
some benefit in the future.
✓ The expected future benefit from investment is called a return (to investment).
✓ The return may consist of capital gain and/or investment income, including dividends, interest, rental
income etc.
✓ Investment generally results in acquiring an asset, also called an investment. If the asset is available at
a price worth investing, it is normally expected either to generate income, or to appreciate in value, so
that it can be sold at a higher price (or both).
✓ Investors generally expect higher returns from riskier investments.

4) Explain that participants will go into working groups where there will discuss and list
the 10 key investment decisions that small enterprise should consider before

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expanding business.

Read Out Handout 5: Introduction to making investment decisions

1) Publicity: It is important to allocate resources on publicizing your business within the local
environment and other territories that you need to go to

2) Customer research: Customer research enables the small business owner to keep on understanding
customer needs, wants and expectations. Simple research can be conducted through customer
feedback forms or even through on-line platforms. It should periodic and should at all times inform
the expansion decisions

3) Business Automation: Business automation refers to simple IT software like on-line profit and loss
calculators that small business owners can use to make simple business transactions. Others include
Electronic Tax Receipts etc. that can be used to show completion of transactions. There is also need
to invest in computers and related software to enable communication with customers, other
businesses etc.

4) Outsourcing; Sometimes we say “Keep the Resource and Outsource the Headache”. Business Costs
can be brought down hugely through outsourcing. For example you do not have to employ a full time
book keeper, but you can have on call, who can be doing this once a month. In short; if you can
generate more money in an hour spent doing these tasks than it would cost you to pay someone to
do it for you, you're losing money.

5) Better bookkeeping: Organizing your books is critical. Therefore investment in a freelance
bookkeeper or even just investing in accounting software can save you a lot of time

6) Training: For those activities that you can keep in-house and delegate, training is essential to ensure
that they are done. These may include customer service etc.

7) Technology: Investment on technologies is important. This includes computers, cash registers,
calculators

SESSION 2: HOW SMALL BUSINESS OWNERS SHOULD MAKE INVESTMENT DECISIONS
Time: 1 hour

Objectives
➢ Introduce ourselves to how small business owners should make investment decisions

Materials
➢ Flip chart paper and markers
➢ Handout 6: How small business owners should make investment decisions

Training aids
➢ Photocopy Handout 6: How small business owners should make investment decisions

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Facilitation Steps
1) Explain to participants: “In this course, you will learn How small business owners should
make investment decisions

2) Ask participants to break into 3 groups and brainstorm on the following:

✓ What business aspects should we invest on?
✓ How should we make decisions for our businesses?
✓ What are the qualities of a good investor?

3) Let the groups present. Ensure that you create a discussion.

4) Provide the following summary in Handout 6:

Handout 6: How small business owners should make investment decisions
Every day every small business owner makes decisions daily.
Business decisions may be as simple as who on your team is taking the client out for lunch or as complex as
developing a marketing strategy or making a business investment.

As a business owner needing to make investments, you should possess the following qualities:

i. A proven track record as a start-up/established small business investor.

ii. They should possess ample experience and relevant market knowledge.

iii. A good network of contacts in the industry

iv. Ability to evaluate business investments. They should do simple calculations to show the effect of a
decision on business profits

v. Ability to add up business costs. For instance, if you have placed an advertisement that is also an
investment, you need to include the cost of designing and submission in your total cost of
investment.

vi. Ability to identify the profit made from a particular investment. Though it can be difficult it is not
impossible. If you have placed an advertisement in the local newspapers or through any of the social
media channels, you can directly ask customers who call for enquiries where they heard about your
business. Another idea is to direct your potential customers to a specific phone number or specific
website to track the source of sales.

vii. Ability to get the percentage on return on investment. You should subtract your business
investment cost from the total sales and divide that amount by the total cost.

viii. Ability to plan for the future while making investment decisions. Investment decisions should be
made keeping in mind the future. As a businessperson, you need to decide how to divide your
assets and individual investments. Discuss it with your family. When you are making a business
investment, make sure to have a clear short term and long-term plan in mind. You need to decide
whether the returns are enough to meet your needs.

ix. Ability to take full responsibility of your business investment decisions – Whether it is a personal or
business investment, take full responsibility of your decisions in case of success or failure.

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SESSION 3: HOW SMALL BUSINESS OWNERS SHOULD EVALUATE INVESTMENT DECISIONS
Time: 1 hour

Objectives
➢ Introduce ourselves to how small business owners should evaluate investment decisions

Materials
➢ Flip chart paper and markers
➢ Handout 7: How small business owners should evaluate investment decisions

Training aids
➢ Photocopy Handout 7: Steps in selecting investment decisions

Facilitation Steps
5) Explain to participants: “In this course, you will learn How small business owners should
evaluate investment decisions
6) Explain the following
When you make an investment in your business, it's important to evaluate the results. This
will help you determine if it's an investment that you should repeat or if you should invest
in a different direction in the future.
7) Ask participants to break into 2 groups and brainstorm on the following:
✓ What should we consider in selecting the best investment decision?
✓ What qualities should we possess to enable us select our investment
decisions?
8) Let the groups present. Ensure that you create a discussion.
9) Provide the following summary in Handout 7:

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Handout 7: Steps in selecting investment decisions
Every day every small business owner makes decisions daily.
The following would be essential steps to take in selecting investment decisions:

Recap
Read the closing questions to the group, allowing time for participants to reflect and respond.

➢ What are some of the things we learned in this session?
➢ How will you use these skills in your life and/or business?


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