Page 36 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 36
Sandwich Management
of people were employed in non-market service activities, such as: public
administration, education and health care etc (Gričar 2014).
The EU ranks companies into categories of either small or medium
sized companies through the following criteria: number of employees,
yearly revenue, balance sheet total. A company is classed as a small com-
pany when the number of employees is less than ten people, yearly revenue
doesn’t exceed 700,000 euros and the total on the balance sheet isn’t more
than 350,000 euros (Casadesus-Masanell and Ricart 2011; SORS 2014).
There is no business opportunity and entrepreneurial activity without
an idea. An idea is usually perceived as a solution intended for potential
customer problems. Before the official opening of a company, a prudent
person would test their idea on the target clientele. Through this approach,
the fundamental information that is gained can either confirm or refute a
36 hypothesis if the market needs what is offered (Glas 1999).
The notion ‘entrepreneurship’ cannot be described pricesly with one
single definition. Pšeničny et al. (2000) describes entrepreneurship as a
set of activities by an individual or group who produce, by managing dif-
ferent resources, a product or service identified as a business opportunity.
When the market or customer identify the latter as being worth buying,
the service or product sold enables the generation of revenue (Pšeničny et
al. 2000).
Until recently, the presentation of a business idea in a business plan
played a crucial role when searching for financial support. Approaches have
changed, especially when we have an idea which can expand considerably
in a short period of time. Modern approaches to present and evaluate po-
tential business ideas are done with the help of a business model canvas
(BMC). This approach is called Lean start Up. We also have tools to iden-
tify our added values of service/product for targeted customers via Value
Preposition Canvas (VPC). Both models are squared templates where we
insert what each square is requesting. Subsequently, we should be able to
successfully present our idea through answering basic questions regard-
ing: how the revenue will be generated? Who our targeted customers are?
What are our expenses? How will we advertise ourselves? The template
serves all those who haven’t developed their sustainable business model
and are searching for the right one through testing on the market with a
focus on customer needs (Osterwalder et al. 2014).
As previously mentioned, until recently business plans were the sole
means of finding funding. BMC represented a radical change when it came
to the presentation of our business idea. More than ¾ of all start-ups never
make it as a sustainable business able to repeatedly generate revenue. Un-
of people were employed in non-market service activities, such as: public
administration, education and health care etc (Gričar 2014).
The EU ranks companies into categories of either small or medium
sized companies through the following criteria: number of employees,
yearly revenue, balance sheet total. A company is classed as a small com-
pany when the number of employees is less than ten people, yearly revenue
doesn’t exceed 700,000 euros and the total on the balance sheet isn’t more
than 350,000 euros (Casadesus-Masanell and Ricart 2011; SORS 2014).
There is no business opportunity and entrepreneurial activity without
an idea. An idea is usually perceived as a solution intended for potential
customer problems. Before the official opening of a company, a prudent
person would test their idea on the target clientele. Through this approach,
the fundamental information that is gained can either confirm or refute a
36 hypothesis if the market needs what is offered (Glas 1999).
The notion ‘entrepreneurship’ cannot be described pricesly with one
single definition. Pšeničny et al. (2000) describes entrepreneurship as a
set of activities by an individual or group who produce, by managing dif-
ferent resources, a product or service identified as a business opportunity.
When the market or customer identify the latter as being worth buying,
the service or product sold enables the generation of revenue (Pšeničny et
al. 2000).
Until recently, the presentation of a business idea in a business plan
played a crucial role when searching for financial support. Approaches have
changed, especially when we have an idea which can expand considerably
in a short period of time. Modern approaches to present and evaluate po-
tential business ideas are done with the help of a business model canvas
(BMC). This approach is called Lean start Up. We also have tools to iden-
tify our added values of service/product for targeted customers via Value
Preposition Canvas (VPC). Both models are squared templates where we
insert what each square is requesting. Subsequently, we should be able to
successfully present our idea through answering basic questions regard-
ing: how the revenue will be generated? Who our targeted customers are?
What are our expenses? How will we advertise ourselves? The template
serves all those who haven’t developed their sustainable business model
and are searching for the right one through testing on the market with a
focus on customer needs (Osterwalder et al. 2014).
As previously mentioned, until recently business plans were the sole
means of finding funding. BMC represented a radical change when it came
to the presentation of our business idea. More than ¾ of all start-ups never
make it as a sustainable business able to repeatedly generate revenue. Un-
