1st Quarter Reviewer ENTREP PDF

Entrepreneurship- is the process of discovering new Determination– they look at defeat as an opportunity ways of combining resources. for success. Entrepreneur- is someone who “creates a new business Strong people skills– has strong communication skills to...

Entrepreneurship- is the process of discovering new Determination– they look at defeat as an opportunity ways of combining resources. for success. Entrepreneur- is someone who “creates a new business Strong people skills– has strong communication skills to in the face of risk and uncertainty for the purpose of sell the product and motivate employees. achieving profit and growth Strong work ethic– will often be the first person to Enterprise- is a company or business, often a small one. arrive at the office and the last person to leave. Innovation– The innovation theme is characterized as Passion – they genuinely love their work and are willing doing something new as an idea, product, service, to put in extra hours to make the business succeed. market, or technology in a new or established IMPORTANCE OR ROLE OF ENTREPRENUERSHIP organization. - Accelerates Economic Growth. Creating Value- This theme articulates the idea that - Promotes Innovation. entrepreneurship creates value. The attributes in this - Promote Social Changes. factor indicated that value creation might be - Promotes Research and Industrial Development. represented by transforming a business, creating a new - Develops and Improves Existing Enterprises. business, growing a business, creating wealth, or destroying the status quo. Focus and Direction- Should have a clear and documented vision-mission and strategies to begin with. The Owner-Manager– Some of the respondents Have a very good objective for the business. Starting questioned by Gartner (1990) did not believe that small right by “beginning with the end in mind.” mom-and-pop types of businesses should be considered entrepreneurial. Some respondents felt that an Sources of Capital- Different sources of capital are important element of the definition of entrepreneurship available; the only catch is determining the needed was that a venture be owner managed. To be amount of funds where it will be sourced from. It can be entrepreneurial. from personal funds, family and friends, a retirement account, banks or financial institutions, a government Involves creation process- Capability to think of new loan, or the stock market. ideas that will bring something useful to the community. Good Network- Building good relationships and working Requires devotion of time and effort- If something is well with other people. Formal networks like important to you, time and effort will make it easy to associations and professional groups, informal networks give in. like childhood friends, family members, former Disciplined – are focused on making their business work classmates. These can be drivers to build self-confidence and eliminating hindrances or distractions from their and direction, providers of information that are not goal. readily accessible to others, suppliers of raw materials, serves as mentors/coaches. Confidence– are confident in the knowledge that they will make their business succeed. Legal Requirements- should know the laws and regulations that govern the type of business that will be Open-minded – they can look at everything around opened to avoid major problems that can arise if legal them and focus it on their goals. requirements are overlooked. Self-starter– knows that if something needs to be done, Degree of Risk- Business is said to be risky when the they should start it themselves. probability or chances of failure is high meaning the Competitive – they need to win at the sports they play odds are great in many aspects against starting the and at the businesses they create. business-like limited market, stiff competition, high cost of financing the business, few supply of needed labor. Creativity- often come up with solutions that are the synthesis of other items. Research and Development- Should have a strong 1. Continuous Manufacturing or Flow shop- research and development to be undertaken on creation production is done continuously. of new technology-based ventures. Innovation is a 2. Intermittent or Job Order- production takes factor that keeps the business and its products busy in place only when demand calls for it. the market resulting in an increase or decrease in its 3. Batch Manufacturing- combination of the customers. flow shop and the job order type of manufacturing. Personal Competencies- Competencies like creativity, 4. Project Manufacturing- characterized by opportunity seeking, self-confidence, persistence, putting different inputs to make or produce commitment and risk-taking as well as technical product which can be applied in making background and related experiences needed to run the projects that differ from each other. business are necessary to start running a business. HYBRID BUSINESS- a hybrid business could be classified Availability of Resources- Resources like raw materials, in more than one type of business. human resources, and machinery/equipment should be at an adequate level from the get-go of your business. Entrepreneurial Ideas- The creation of entrepreneurial As an entrepreneur, knowing the sustainability of these ideas leads to the identification of entrepreneurial resources is a must. opportunities, which in turn results in the opening of an entrepreneurial venture. SERVICE- a type of business operation engaged in the rendering of services. Entrepreneurial Mind Frame- This allows the entrepreneur to see things in a very positive and 1. Delivery services- Companies can use optimistic way in the midst of difficult situations. Being a delivery services to receive supplies without risk - taker, an entrepreneur can find solutions when physically shopping for them. problems arise 2. Cleaning Services- Cleaning services are in high demand. Starting a cleaning service is a Entrepreneurial Heart Flame- Entrepreneur's driven great way to become your own boss and passion, they are attracted to discover satisfaction in the make a good income. act and process of discovery. 3. Professional services- To operate a Entrepreneurial Gut Game- This refers to the ability of successful service business in the the entrepreneur to be intuitive. This is also known as professional services industry, one must intuition. have specialized knowledge to assist clients. Substitute- is one that serves the same purpose as TRADING OR MERCHANDISING- a type of business another product in the market. Providing cheaper engaged in the buying and selling of goods. It includes alternatives the process of managing and marketing the product. ACCORDING TO SIZE 1. RETAILING- Refers to selling goods and services directly to the final consumer. 2. WHOLESALE- An important component distribution channel and it can be defined as a business activity of the buying and selling of goods in large quantities at cheaper prices, mostly to small MANUFACTURING- Business that is engaged in the production of items to be sold. It involves the purchasing and converting of raw materials to finished goods. businesses and shops when they are sold to end- users or customers. Sole Proprietorship- Owned and usually managed by c. Location and Floor Plan one person. d. Nature of Business Partnership- Association of two people or more e. Vision Statement persons. f. Mission Statement Corporation- a legal entity created by individuals, stockholders, or shareholders, with the purpose of g. Organizational Chart operating for profit. Flexibility for growth. h. Workforce and Support Personnel Cooperative- A duly registered association of person, with a common bond of interest, who have voluntarily III. Compensation Plan joined together to achieve a lawful common social or IV. Marketing Plan economic end. Business Plan- is a document that explains how your business operates. a. Marketing Objectives and Targets (3 Years) The Organizational Plan- This part of the business plan Sales describes the basic demographics of the business, Profits namely the name and logo of the company, the names of the owners, the address of the company's vision and Distribution mission statements, and its organizational structures. b. Marketing Strategy / Action plan Compensation Plan- Any business has the need for a V. Production Plan workforce or human resources, which leads to the requirement to compensate the employees that work I. Product & Product’s Unique Features for them. In this section, the rates of salaries and wages, II. Manufacturing Process together with benefits for the personnel, are stated. a. Product Prototype Production Plan- This section of the business plan indicates steps on how to mass-produce products, III. Machinery and Equipment including sources of raw materials together with how the process for products will be indicated. IV. Raw Materials Market Plan- This includes the plan on how to reach the V. Utilities target market of the company’s products. The market VI. Financial Plan research, and strategies, together with the marketing mix are included in this section. I. Start-up Capital Requirements Financial Plan- This section tackles how the financial II. Product and Service Cost aspects of the business will be designed or planned. Social Security System (SSS) - this is to ensure that Figures on how much the initial capital is, product prices workers and employees are protected upon disability, or costs, and expected income are indicated in this retirement, maternity, sickness, or death. The agency section. also gives educational, salary, and calamity loans to BUSINESS PLAN OUTLINE members. The income will replace in a time of needs. I. Executive Summary Philippine Health Insurance Company (PHIC) - a benefit given to workers/employees for medical bills, doctor’s II. Organization Plan fees, and hospitalization bills of the members and their a. Business Name beneficiaries. Home Development Mutual Fund or Pag-Ibig Fund- it is b. Logo a mutual fund or a savings fund earning a dividend. Product- a Product is anything that can be offered for show an inclination toward similar brands and respond satisfaction. It may be an idea, a physical entity (a good), equally to market fluctuations. Individuals who think a service, or any combination of the three. A product is along the same lines and have similar preferences form the bundle of satisfaction which the buyer receives as the target audience. The target market includes the result of a lease or purchase. individuals who have similar expectations from organizations or marketers. Price- Refers to how much the company will sell the product for. When establishing a price, companies must Market penetration- is a strategy for increasing your consider the unit cost price, marketing costs, and share of existing markets. You might achieve this by distribution expenses. Companies must also consider raising customers’ awareness of your products and the price of competing products in the marketplace and services or by finding new customers. whether their proposed price point is sufficient to Product development- is a strategy for enhancing the represent a reasonable alternative for consumers. benefits you deliver to customers by improving your Place- Is making the products available in the right existing products and services or developing new ones. quantities and locations where customers want them. Diversification- is a strategy that usually carries high Distribution Strategy refers to the process of moving costs and high risks. It often requires firms to adopt new goods and services from the company to the customer. ways of doing business, which has consequences far The distribution channel that will be adapted must beyond simply offering new products/services in a new provide a strategic advantage to the company. market. Promotion- Refers to “the marketing communication Marketing Research- Is the process of gathering used to make the offer known to potential customers information that will make the company more aware of and persuade them to investigate it further”. Promotion how the people, it sells to will react to the company’s elements include “advertising, public relations, direct current or potential products or services. selling and sales promotions. Branding- is the process of giving an identity to a People- Essential in the marketing of any product or specific organization, company, products or services by service. In the professional, financial or hospitality creating and shaping a brand in consumers’ minds. service industry, people are not producers, but rather the products themselves. When people are the product, Brand- a name or mark that is meant to identify the they impact public perception of an organization as seller’s product and differentiate it from the product of much as any tangible consumer goods the competitors. Packaging- Refers to the preparation of a product for Brand Name- consists of letters, words or numbers that appropriate transportation and storage. Depending on can be read or verbalized. the type of commodity, the packaging process may entail wrapping, bottling, strapping, sealing, marking, Logo- a visual design element called logo is used to cushioning, bracing, weatherproofing, or blocking. symbolize a brand. Fundamentally, packaging protects products from Generic brand- refers to a product that lacks a damage during storage or transportation. Additionally, noticeable name or logo because it’s not mostly different packages differentiate brand products from advertised. competitors, ensuring they are recognizable and marketable. In other words, packaging helps identify, Trademark- is a brand that has been adopted by the describe and promote the product. seller and given legal protection. Trademarks are protected by the operation of law under the Physical Evidence- The lasting proof that the service has Department of Trade and Industry (DTI). happened, in terms of buying a physical product, the physical evidence is the product itself. CRITERIA FOR CHOOSING A BRAND NAME Target market represents a group of individuals who Distinctive– is the brand closely associated with another have similar needs, perceptions, and interests. They product Word Association– does it have a pleasant meaning? Legal Requirements– can it be registered? Memorability– can your name be remembered easily? Pronounceability– can it be pronounced easily? Limitations– is the brand name too limiting to be used for expansion? REASONS FOR THE EXISTENCE OF BRANDS Identification – Brands enable consumers to easily distinguish one product from another. Protection – It enables the owner of the brand name to enjoy the goodwill associated with the name. Positioning- It enables the owner to communicate the benefits of his product compared to competition.