Entrepreneurial Reviewer 1st Quarter PDF

ENTREP REVIEWER1ST QUARTER LESSON #1 ENTREPRENEURSHIP Yes, the concept of introducing WHAT IS ENTREPRENEURSHIP? something new is called...... Entrepreneurship has been defined INNOVATION as the ability to be able to know...

ENTREP REVIEWER1ST QUARTER LESSON #1 ENTREPRENEURSHIP Yes, the concept of introducing WHAT IS ENTREPRENEURSHIP? something new is called...... Entrepreneurship has been defined INNOVATION as the ability to be able to know It is a new method, idea, or product. what products and services are To innovate is to be able to translate needed by people and to be able to an idea invention into good or or provide these things at the right service that has commercial value. time, at the right place, and to the WHO IS THE ENTREPRENEUR? right people and at the right price. An entrepreneur is someone who CHARACTER OF AN ENTREPRENEUR starts or owns a business. Whether Be aware and devoted. it’s farming, retail, manufacturing or Have a great idea or concept and in the service sector. Entrepreneurs gather resources-- people, money, are business people who find their raw materials and knowledge. success by taking risks. Identify the opportunity. TYPES OF ENTERPRISES ACCORDING TO Take risks or deal with CONCEPT uncertainties in the course of Entrepreneurial enterprise can involve: New concepts and/or a new making, selling and distributing business products and services Existing concept and/ or new The resulting rewards can take the form business of: Existing concept/existing business Monetary and financial feedback TYPES OF ENTERPRISES ACCORDING TO Personal Satisfaction SIZE Independence Most enterprises in the Philippines are Ability to provide job often categorized as MSMEs: A chance to help and serve the 1. Micro-enterprises (below 3mil) community. 2. Small-enterprises (3-15 mil) DOES ENTREPRENEUR ALWAYS INVOLVE 3. Medium-enterprises (15-100 mil) AN OPPORTUNITY? 4. Large-enterprises (100 mil above) Entrepreneur happens when a person or the entrepreneur identifies an opportunity where he can make a profit. Buying a product at a lower price in one location, and selling it at a higher price in another location. Entrepreneur buys new materials, combines them in a new process, manufacturing produce a new INDUSTRY SECTORS CAN THE MSMES BE product and then sells it at at a price FOUND greater than the Cost of producing it As of 2009, there are 780,437 DOES ENTREPRENEUR SHIP ALWAYS business enterprises operating in the INVOLVE SOMETHING NEW? Philippines. ENTREP REVIEWER1ST QUARTER CHAPTER 1: PLANNING THE ENTERPRISE SET CLEAR GOALS: Knowing the end goal helps you define specific, measurable, achievable, relevant, and time-bound (SMART) objectives that guide your planning and HOW DO MSMES CONTRIBUTE TO decision-making. EMPLOYMENT? STAY FOCUSED: The MSMEs generated a total of Having a clear vision of the end 3, 595, 641 jobs in 2009. result allows you to stay focused on what truly matters and avoid getting sidetracked by irrelevant distractions. CREATE A ROADMAP: With the end goal in sight, you can develop a well-structured plan that outlines the necessary steps to reach TYPES OF ENTERPRISES ACCORDING TO that objective. This plan becomes a GOALS roadmap that keeps you on track. Enterprises can be broadly categorized MEASURE PROGRESS: into 2 groups: BUSINESS & SOCIAL By knowing the end goal, you can ENTERPRISES measure your progress along the BUSINESS ENTERPRISES way and adjust your approach if are entities that engage in needed to ensure you're on the right commercial activities for the path. purpose of livelihood or profit. MOTIVATE & INSPIRE: Ex. Manufacturing, selling, trading and Visualizing the desired outcome can distributing. be a powerful motivator, driving you SOCIAL ENTERPRISES and your team to work diligently and are an organization that uses creatively towards achieving it. commercial activities to improve human and environment-well being WHAT IS BUSINESS PLAN? 3 goals: Profit, the well-being of the A guide throughout the process of people and the planet. entering any business endeavor. Ex. Gawad Kalinga, Multiventure Inc. Formal written document containing (Hapinoy) and Coldillera Coffee. business goals, the methods on how these goals can be attained, and the LESSON #2 BUSINESS PLAN time frame within which these goals HOW DID YOU PLAN THESE EVENTS? need to be achieved “Good planning always begins with the end in mind.” ENTREP REVIEWER1ST QUARTER PURPOSES: 7. Overview of the projected financials To guide the entrepreneur containing revenues, cost, profits To convince the investors and and assumptions of your business. financiers to financially support the MANAGEMENT & ORGANIZATION enterprise This part includes all the information To harmonize the strategies and about your business. This also programs of enterprise managers describes the world flow and staff. (organizational) structure; the background, experience and role of PARTS OF BUSINESS PLAN each) of your business from the highest position up to the lowest. Company name Logo Address Business Statement Mission Statement Key Personnel Organizational Chart Ownership Capitalization, EXECUTIVE SUMMARY Compensation and Incentives This part can be found at the External Management Support beginning of the Plan but is the last PRODUCT/SERVICE PLAN to be accomplished since this This part describes the highlight of synthesizes the whole plan. This the product or service offered to the contains a brief introduction and customers so that they will be summarizes everything that is encouraged to patronize your relevant and important to the product or service. It also explains prospect business audience. how the product or services will be GUIDE IN CREATING A EXECUTIVE accepted and carried by the SUMMARY distribution channel. 1. Description of your proposed PRODUCT/SERVICE PLAN GUIDE business and business model. 1. Purpose of your product or service 2. Description of the market 2. Product/Service Unique Features opportunity you want to capture or 3. Material requirements and Sources market problem the business solves. of Supply. 3. Reasons why this is an attractive 4. Processing Equipment that will be business opportunity. Used to Manufacture the Product or 4. Key distinctions or differentiators of Render the Service your business versus competitors. 5. Production or Service Process and 5. Overview of the sales, marketing, Controls and operations strategy and plan. 6. Distribution Logistics 6. Description of your executive 7. Regulatory and Other Compliance planning Issues ENTREP REVIEWER1ST QUARTER MARKET PLAN and, permitted by law and other This includes your business regulations to purchase the given strategies, the target market, value product or service. proposition of your product or services that may increase the One way to recognize a potential market is company sales (Chen 2019). to analyze the market need and MARKET ANALYSIS opportunities through the environment. This includes the process of how you divide the total market into smaller PERSONAL SOURCES OF groups seeking similar needs and OPPORTUNITIES wants (market segmentation) and the characteristics analysis of the business in relation to internal and external factors. (SWOT Analysis) GUIDE IN MARKET PLAN Market Analysis Marketing and Sales Strategies Product or Service Characteristics MACRO ENVIRONMENTAL SOURCES OF Pricing Policy OPPORTUNITIES Sales Projection This refers to the big (external) forces that affect the area, the LESSON #3 MARKET industry , and the market, which the OPPORTUNITY SEEKING enterprise belongs to. This are Some People say that opportunities knock categorized as follows: (Morato 2016) only once. But the truth is, opportunities come in many forms and sometimes in SOCIO CULTURAL ENVIRONMENT disguise. Social Forces elements of society resulting from Identifying your entrepreneurial traits, human interactions that can skills and competencies is a significant influence the thoughts, behaviors, factor before you start a business venture attitudes, actions and even the but having been able to identify these, can beliefs and customs of the people. you start an enterprise right away? Cultural Forces refer to the integrated The answer is No. An entrepreneurial characteristics of a group of people venture starts with an opportunity that an or ethnic group in a particular entrepreneur needs to exploit. society MARKET POLITICAL ENVIRONMENT It refers to a group of people or This depicts the governance system organizations that has an interest in of an area or the local region of the a product or service (satisfying their business enterprise. It includes but is needs and wants), has resources not limited to laws, rules that control their business practices. ENTREP REVIEWER1ST QUARTER ECONOMIC ENVIRONMENT Will I spend all my time, effort, and This is characterized by the income money to make the business level of a region which in turn opportunity work? dictates the purchasing power of the Will I sacrifice my existing lifestyle, customers. Competitiveness of its endure emotional hardship, and industry and enterprises are defined forego my usual comforts to succeed here. in this business opportunity? Do I have the resources or can I ECOLOGICAL ENVIRONMENT muster the resources to start and This includes living and nonliving grow this opportunity? things around us. A growing environmental awareness for taking 12 R’s of OPPORTUNITY SCREENING care of our planet and prolonging RELEVANCE lives opens opportunities for to mission, vision, and objectives of business. the entrepreneur. CLIMATE RESONANCE PHYSICAL RESOURCES the values and desired virtues you WILDLIFE want to impart. REINFORCEMENT OF ENTREPRENEURIAL TECHNOLOGICAL ENVIRONMENT INTEREST Technological offerings for the How does the opportunity resonate improvement of ventures is with the entrepreneur’s personal unavoidable for entrepreneurs. interests, talents and Skills? (Upgrading of systems, processes or REVENUES new equipment integrated in sales potential of the products or product) services you want to offer. RESPONSIVENESS MICRO MARKET customers' needs and wants. Refers to the specific target market REACH being served by a particular opportunities that have good enterprise. chances of expanding. These are the target customers that RANGE represent the immediate customers possible product. of the enterprise. REVOLUTIONARY IMPACT could possible bring changes LESSON #4 OPPORTUNITY RETURNS SCREENING products with low cost of production and operations but sold at higher PERSONAL SCREEN prices. Do I have the competence to take RELATIVE EASE OF IMPLEMENTATION on this opportunity and make it Will the opportunity relatively easy viable? to implement for the entrepreneur Do I have the drive to pursue this RESOURCES REQUIRED business opportunity to the end? ENTREP REVIEWER1ST QUARTER opportunities requiring fewer MARKET RESEARCH resources from Any set of techniques used to gather the entrepreneur may be more information and better understand a favored than those requiring more company’s target market. resources. Businesses use the information to RISKS design better products, improve user Some opportunities carry more risks experience, and craft marketing than others. strategies that attract quality. DATA GATHERING DATA COLLECTION is the most valuable tool of any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. TIPS IN GATHERING DATA MARKET POTENTIAL & PROSPECTS Organize collected data as soon as it Segmenting the market is available Assessing competition Know what message you want to get Estimating market share and sales across and then collect data that is TECHNOLOGY ASSESSMENT AND relevant OPERATIONS VIABILITY Collect more data Quantities demanded Create more data Quality specifications demanded Regularly run experiments or collect Delivery expectations data Price expectations Challenge your assumptions INVESTMENT REQUIREMENTS AND Set reasonable expectations PRODUCTION/SERVICING COSTS Take note of interesting or PRE-OPERATING COSTS significant data The costs related to the preparation OBSERVATION TECHNIQUE for the launch of the business One of the best ways of gathering PRODUCTION/SERVICES data about customers in their Facilities investment refers to the natural setting without having to long term investment for the actual interact or talk to them. business establishment including Simply observing people as they go land, buildings, machinery, about their usual activity such as equipment etc. buying and using products and WORKING CAPITAL INVESTMENT services and assess how they Cash, accounts receivable, behave. inventories (raw materials, Advantage working-process, and finished Seeing what customers actually do goods.) rather than rely on what they say they do. LESSON #5 MARKET RESEARCH Disadvantage ENTREP REVIEWER1ST QUARTER Researchers cannot get the reasons INTERVIEW behind the behavior. It is typically done in person 3 DIFFERENT DATA COLLECTION between the TECHNIQUES researcher/entrepreneur and a SURVEYS respondent where the researcher the most common way to gather asks pertinent questions that will primary research with the use of give significant pieces of questionnaires. information about the problem that These can be done via direct mail, he will solve. over the phone, internet, email, PERSONAL INTERVIEWS face-to-face etc. are the traditional method of TiPS interview. Establishing relationships Keep it as simple as possible. with potential participants to gain Make sure it is clearly appealing and their cooperation. easy to read. TELEPHONE INTERVIEWS Cluster or block related questions. less expensive and less time Move from complex questions to consuming, but the disadvantages more specific questions. are that the response rate is not as Make sure questions are concise and high as the face-to- face interview. easily understood. SAMPLING TECHNIQUE FOCUS GROUP DISCUSSION (FGD) PROBABILITY SAMPLING an excellent method for generating respondents are randomly selected and screening ideas and concepts. It as in a lottery method. can be a moderated group interview NON PROBABILITY SAMPLING and brainstorming session that convenience, purposive, quota and provides information on the user's snowball sampling needs and behaviors. CONVENIENCE SAMPLING The length of the session is between selecting respondents who are 90 and 120 minutes. available. Usually, conduct focus groups PURPOSIVE SAMPLING discussion with 8 to 10 participants researchers rely on their own per group. judgment when choosing members Assign an expert moderator / of the population to participate in facilitator who can manage group their surveys. dynamics. QUOTA SAMPLING Use a semi-structure or selecting a representative in a open-format discussion population based on specific CUSTOMER PROFILING qualities and traits. DEMOGRAPHICS SNOWBALL SAMPLING Age a recruitment technique in which Income Classes participants assist researchers in Social Classes/Reference Groups identifying other potential subjects Ethnic Backgrounds or respondents. Religious Beliefs/Occupation ENTREP REVIEWER1ST QUARTER PSYCHOGRAPHICS Value of money in exchange for a Customers' motivations, perceptions, product or service preferences, and lifestyle. PROMOTION TECHNOGRAPHICS Set of activities which communicate Classifying people according to their the product, brand, or service to the level of expertise in using a product user or service. PEOPLE MARKET SEGMENTATION One of the most important in the Assumes that the best way to sell is marketing mix to recognize differences within the People who are involved with the broad market and adjust strategy product directly or indirectly. accordingly. PACKAGING MARKET AGGREGATION Outside appearance of a product When planners purposefully use one POSITIONING marketing strategy that will appeal To create an image in the minds of a to as many audiences as possible. target market. MARKET MAPPING Grouping customers, products and organizing information about various competitors in the industry to identify position and potential GOODLUCK! market. LESSON #6 THE 7 P’s OF MARKETING MIX PRODUCT Any goods/services that are produced Can be organized PLACE Where the buyer and seller exchange goods/services PRICE