Innovation Management Principles

Turning Ideas into Reality

• The main question to consider before establishing a business is: "What kind of business is easy to start and is guaranteed to be successful?"
• An entrepreneurial venture depends on various factors, including personal capacity, societal and business trends, and national and world economy updates.

Reasons for Setting Up a Business

• People set up their own business due to various reasons, including:
• Unable to find a job
• Recently lost a job
• Not progressing in their current job
• Regardless of the reason, aspirants should thoroughly study their business idea and justify the marketability of their product or service.

Marketability and Segmentation

• Marketability refers to the ability of a product, service, or asset to be sold or exchanged in a market, influenced by factors like demand, consumer preferences, competition, pricing, branding, and distribution channels.
• Market segmentation divides a broader market into smaller, distinct consumer groups.

Tips for Entrepreneurs

• Search for a market gap or solve a problem for potential customers to produce sound venture ideas.
• Be a trend spotter and take advantage of emerging trends.
• Put your business plan in writing to add substance to your idea and develop your business strategy.
• Operate your home-based business enterprise as if it were in a separate business location and be professional.
• Carefully study and evaluate potential retail locations.
• Negotiate the terms and conditions of a commercial lease for your business enterprise.

Registering Your Business

• Establish your own unique business name, which can be registered with the Department of Trade and Industry (DTI).
• Secure regulatory permits from various authorities, including the Barangay Clearance for Business, Business Permit from the Local Government Unit, Securities and Exchange Commission (SEC), and Bureau of Internal Revenue (BIR).
• Register with other agencies depending on the nature of your business, such as the Department of Health (DOH), Cooperative Development Authority (CDA), and Department of Environment and Natural Resources (DENR).

Financial Management

• As a financial manager, entrepreneurs must determine the best ways to raise and maximize the use of money.
• Finance is the art and science of managing financial resources.

Production and Quality Control

• Production refers to the creation of goods and services to satisfy human necessities and wants.
• Quality Assurance is concerned with ensuring that processes used to create the product or service are effective.
• Quality Control involves ensuring that goods and services are produced in accordance with design and specifications.

Marketing

• Marketing is an integration of different processes and functions, such as research and development, advertising, customer service, distribution, and selling.
• Marketing is not just selling, but a broader concept that involves understanding the target audience, positioning, and tactics to promote products or services effectively.