ENTREP UNIT 2

• A business plan is a written description of a business to be established in the future.
• Business plans can be written before or during the early years of a business.
• Business plans guide the entrepreneur on beneficial strategies for the enterprise.
• A business plan is a blueprint for a proposed business.
• A business plan can test the feasibility of a business idea.
• A business plan gives a new business the best chance of success.
• A business plan can secure funding and make business planning more effective.
• A business plan can attract investors.
• A good business plan is realistic, specific, and followed through.
• A realistic business plan accounts for the feasibility of implementation.
• If a plan is impractical, no operational method can be devised to achieve the strategy.
• Identifying customer needs determines a product.
• Customer needs are non-technical and reflect customers' perception of merchandise.

Attributes in the Kano Model

• Five categories of attributes are present under the Kano Model.
• The attributes can be used to determine the type of customer needs.
• The model was founded by Japanese professor Noriaki Kano.

Attractive Quality

• Customer satisfaction increases when these attributes are met.
• The lack of these attributes does not decrease satisfaction.
• Often customers do not expect these attributes initially, but their appearance causes joy.

One-Dimensional Quality

• Meeting these attributes increases satisfaction; not meeting them decreases satisfaction.
• These attributes determine the competitiveness of a service or product.

Must-Be Quality

• Customers consider these attributes essential and expect them.
• Customers are neutral if attributes work, but dissatisfied when the customer need is not met.

Indifferent Quality

• These attributes do not affect customer satisfaction. Businesses can reduce costs by using this fact.
• Customers are often unaware of the difference between quality and its replacement.

Reverse Quality

• The customer has different needs and expectations for these attributes.
• Providing additional attributes for some customers can be a waste of money.

Customer Needs Identification using the 4-Step Method

• Step 1: Gather Raw Data - Data is gathered using interviews to identify customer needs.
• Step 2: Interpreting Data - Analyze and omit data not essential or aligned with research.
• Step 3: Organizing Data - Categorize the gathered data based on its nature.
• Step 4: Reflect on the Process - Decide if the process is sufficient for the business plan.
• A business plan introduction is a "birds-eye view" of the plan.
• It is written at a high level, avoiding too many details.
• A business concept should contain the essence of the business in a short but powerful way.
• A business model is a formula for how the business plans to make money.
• A business concept encompasses how to develop the business.
• A business model shows how to make the prosper via the recommendation given by the concept.

Four Areas of Business Modeling:

• Area 1: Raising Revenue
• Area 2: The cost of the enterprise products and other costs of doing business
• Area 3: Major investments of the enterprise
• Area 4: Financing the Investment of the enterprise
• Business goals show the long-term and future prospects of the enterprise.
• Business goals are composed of the vision, mission, objectives, key results area, + performance indicators.
• Goals indicate the desired destination, then objectives show precisely how to arrive there
• Goals increase effectiveness as objectives back those goals.
• Goals are usually represented in words, with objectives often including numbers and dates.
• Measurable goals let you track progress and acknowledge when efforts stray off target.

Types of Stakeholders:

• Resource Mobilizers
• Technology Providers and Applicator
• Government and Top Management
• Operations and Support Team
• The proponents have something to contribute, based on capabilities, skills, and interests.
• An executive summary is summarizing the details for the reader.
• This saves the reader time, so they are able to grasp the key facts of the business.

Contents of the Executive Summary:

• The business opportunity is a must.
• Taking advantage of the opportunity is a must.
• The target Market is a must.
• The Business Model is a must.
• The Marketing and Sales strategy must be present.
• The Competition must be addressed.
• The Financial analysis must be present.
• The Owners/Staff must be noted
• The Implementation plan must be presented.
• It is important to capture the audience's attention immediately so that they are motivated.
• Writing summaries with strong clinching closure that justify why the proposed business is winning.

Tips on writing

• Be sure to focus on providing a summary.
• Keep your language sturdy and positive.
• Keep it short, and polish Executive Summary.
• Put yourself in the reader's place to understand how to be best understood.
• Target market refer to a selected and well-defined client segment among the businesses' serviceable market.
• "Target Customer" refers to a specific group of customers that a company aims to attract.
• Segmentation provides information that allocates resources effectively and reach customers.

Market definition

• Segment the serviceable market with demographics, geography, psychographics, and behavioral patterns.
• The USP is what makes your product better than the competition - why shoppers prefer your product.
• Collect client information and analyze it for your current standing with the base.
• Determine whom your competitor aims to target through promotional efforts, where the items are sold.
• A value proposition refers to the worth an organization guarantees and deliver to the customer.
• Value propositions tells a potential customer why a service is best suited.
• Value propositions should reach customers directly, either via a website or ad.
• Value propositions should follow different formats, be "on brand", unique, and direct.
• A powerful value proposition is persuasive and can turn prospects into paying customers.

Value propositions can:

• Create robust differentiation between the business and its competitors.
• Increase the standard of prospective leads
• Gain market share in segmented target markets
• Improve operation potency
• Increase revenue
• Ensure that the company communicates a similar message.
• A product offering refers to a tangible item you intend to sell, such as a physical service or software.
• A service offering covers intangible services to customers, such as consulting or maintenance.
• The business plan's products and services section is the business plan's core.
• While all parts of the business plan are vital, the products and services section is the "soul" of the product.

Product and services should include;

• Short description of products/services being offered
• The proposed prices of the products/services
• The differentiation between offered products/services and competitors.
• Strategies and marketing tactics
• How will customers be able to process and/or fulfill their orders
• What legal compliances will need to be considered, trademarks, intellectual rights, etc
• Outline services/products which will offered at a later stage or in the future.
• Enterprise strategy helps the business gain sustainable advantage.
• Enterprise strategy signifies organization’s choices to create value for key stakeholders.
• Enterprise strategy comprehensively defines strategic, financial, and operational goals- detailed plans.
• Enterprise delivery systems involve using human, money, and well-selected suppliers.

Business Outcomes Include:

• High customer satisfaction levels with high sales volume
• High people’s performance, productivity, and morale levels. Marketing that includes correct promotion.
• Financial forecasts refer to the capital investment and sources of funding for business operations.

Financial Projections:

• Sales Forecast
• Expenses Budget
• Cash Flow Statement
• Income Projection Statement
• Balance Sheet
• Break-Even Projection
• The balance sheet shows the financial position of the enterprise at a given period.
• It reflects the total assets, liabilities, shareholders, and earnings held for operations/expansion.
• Balance sheets help to meet obligations and discover how to use credit to finance your operations.
• The income statement reports revenues, cost of goods sold, operating expenses, income/expenses, etc.
• Cash flow statements predict money receipts and expense payments.

A statement:

• Shows how money flows through the business over time.
• Aids in verification that the company has enough liquidity to cover expenses.
• May be a measure of strength, profit, and the anticipated outlook for the company.
• Compliance should articulate the laws governing the business and how the enterprise operates.
• It should lay out plans for acquiring permits, licenses, and authority to use intellectual capital.

Regulatory Compliance:

• Bureau of Internal Revenue - Tax ID
• Barangay clearance
• Department of Trade, Industry - Business Name Registration Certificate
• Mayor's Permit/Business Permit
• Sanitation Permit and Fire Clearance
• Securities and Exchange Commission (SEC) Certificate
• Capital structure coordinates debt and equity to fund the company and its operations.
• Contributed Capital is invested for shares of stock in return for ownership.
• Capital is generally considered one of the safest types of capital because terms and conditions are spread overtime.

Capital Structure can include:

• Vendor financing when a company sells a product before paying the vendor.
• Increased return on revenue and equity, without any upfront costs to the business
• Policyholder float financing on cash that does not belong to the insurance companies.
• Earning investments until an insurance claim has been made.
• Capital structure affects a company which also greatly affects the process of going with the best choice.