Entrepreneurship PDF

MODULE 1 - 4 ENTREPRENEURSHIP Overview of Entrepreneurship Entrepreneurship - Leadership is the core of every - a proactive process of developing a entrepreneur business venture to make a profit - His/her natu...

MODULE 1 - 4 ENTREPRENEURSHIP Overview of Entrepreneurship Entrepreneurship - Leadership is the core of every - a proactive process of developing a entrepreneur business venture to make a profit - His/her natural talent is being - seeks opportunities to develop into a perceptive for opportunities business while assessing its risks and - It entails a holistic business talent to rewards through close monitoring. be considered one - Only expect returns once he/she 8 Societal And Economic Benefits Of created value out of an opportunity Entrepreneurship: - Considered successful if the business has materialized into a thriving 1. produces more jobs that equate to an industry with regular customers and increase in national income. financial gain 2. amplifies the economic activities of - Sees existing problems as prospects different sectors of society. 3. introduces new and innovative Five Levels Of Entrepreneurial Development products and services. 4. improves people’s living standards. (According to Action Coach) 5. disperses the economic power and creates equality. 1. The Self-employed 6. controls the local wealth and balances - Dislikes the routine of a desk regional development job and prefers flexibility and 7. reduces social conflicts and political unrest. freedom 8. brings economic independence and - Resists rigid schedules and capital formation. authority, wanting to do things Entrepreneur their way entre, which means “between”, and prendre, - Self-sufficient, but tends to which means “to take”. ( french origin) lead to exhaustion - Eventually realize that a - A unique individual who has the innate ability and extraordinary successful business should dedication to establish and manage a work for them, not the other business. way around 2. The Manager - delegates a suitable manager - feels the need to step up and for such operations and will ask for help from the people act as a director around them 5. The True Entrepreneur - Hires employees, but tends to - Aims for quality and get more people who do not excellence in their work know the exact needs and - Has an income that keeps on requirements of the job multiplying even if they do not - Thinks that the battle is in the put in much effort. “scale” and not the - Practices a four-step process “profitability” of thinking, starting with 3. The Leader idealization, visualization, - Enjoy seeing their people verbalization, and flourish, step up, and produce materialization great results with minimal Idealization - entrepreneurs dream supervision enormously and desire to build an ideal - They can now sleep peacefully, environment. having more time for themselves Visualization - entrepreneurs start to create - Key leaders in the plans to make the dream a reality. organization enjoy the Verbalization - sharing their ideas with other entrepreneur’s trust people, knowing that their vision is already - Focuses on the big picture and occurring. strategic direction of their business rather than on Materialization - happens when the vision generating sales and operating becomes a reality. the business. 4. The Investor Terms Coined To Suit An Entrepreneur’s - Looks for more opportunities Field Or Expertise for their business to grow ➔ Technopreneur - puts technology at - Either purchase one or two the core of his or her business model. businesses or sell their ➔ Social Entrepreneur - turns the established business country’s social problems into profitable institutions.  ➔ Intrapreneur - an entrepreneur in a Have a sharp eye for opportunities large company or corporation who is tasked to think, establish, and run a - a talent for recognizing an new big idea or project (ex. product opportunity using macro-level data. manager and business development They know how to assess the net manager) cause and effect of an opportunity and ➔ Extrapreneur - an entrepreneur who decide intelligently if a venture should hops from one company to another to be considered or not. act as the innovation champion, Sociable providing creative and efficient solutions. - Social skills are one of the most important competencies of Common Traits That Entrepreneurs Should entrepreneurs as these establish the Always Have: relationship with the most important Proactive assets of the company – its people and its customers. - addresses issues, problems, and challenges before they come. Networkers Thorough research, risk assessment, - a networker knows the key people to and timely, efficient execution. connect with. Successful Agents of change entrepreneurs gain the trust of their valuable network and maintain a - they see opportunities in hopeless long-lasting relationship with them. and complex situations. They are always enthused to improve and Decisive develop new products and services - they do not leave an issue unsolved and introduce them to the market. without a disposition. They make sure They don’t settle for mediocrity and that all aspects of their business have the status quo. clear objectives and strategies. Last, Risk takers they base their decisions on scientific calculations backed up by their - by taking risks, entrepreneurs do not experience and technical knowledge. just grab opportunities left and right; they consider the potential threats Balanced they may encounter.  - The minds of entrepreneurs should Communicators have a balance between the analytical - knows how to use all forms of and the creative side. Their brains are communication to effectively share always playing with “unique ideas” ideas and address certain concerns that no one has ever thought of. with their customers or employees. Entrepreneurs always have “Eureka!” Effective communication provides moments and enjoy them. people with a clear view of what the business offers. - Communication channels between Innovative entrepreneurs and their employees or - The minds of entrepreneurs are rich customers should always be open to with big ideas that can add value to ensure the smooth flow of operations their business or could become a in their business. game-changer in the industry or Specialists business where they belong. They keep improving and think of new and - Entrepreneurs are experts in their worthwhile ideas. chosen business. When asked about the specifics of their product or Core Traits That Entrepreneurs Should service, they can easily answer Develop In Managing And Running The without heavily relying on their Business: people. Leaders Problem Solvers - Successful entrepreneurs always have - Entrepreneurs possess critical the heart of a leader. They are humble, thinking skills and look at problems as approachable, and attentive to their challenges or puzzles that they need employees' concerns. Effective leaders to solve. Entrepreneurs can solve act on their responsibilities and problems by immersing themselves in strengths while acknowledging their day-to-day activities, and knowing limitations. They are decisive, own what is happening in and out of their their decisions, and unite their team business. to bring out the best in everyone.  Street Food Business CAREERS IN ENTREPRENEURSHIP - literally located in the streets, selling almost the same food products being Sari-Sari Store sold by the food cart business. - one of the easiest businesses to set up Flea Market Business/Tiangge due to the minimal capital required and because it can be managed at - Entrepreneurs set up a small space home, where the business owner and sell a type of goods in a palengke lives. setup, normally in an open space. Rice Retailing Online Selling Business - rice is the staple food of Filipinos and - ideals with adding the Internet as a other Asian Countries, and the rice marketing and transaction channel for retailing business is common in the selling. country. Cellphone Loading Business Food Cart Business - Some entrepreneurs link the - this business is also popular in the cellphone loading business to their Philippines. They are usually located existing businesses such as the inside or outside the malls, schools, sari-sari store, food cart, or online parks, train stations, and offices. business. Printing Business Laundry and Dry Cleaning Business - This business is also lucrative in the - often located in central business Philippines because the demand is districts and areas with several high. condominiums and townhouses. Buy-and-Sell Business Hair Styling and Make-up Business - this business is one of the emerging - one of the successful businesses in businesses in the Philippines, and it is the Philippines is the hairstyling not just done traditionally in business, which includes parlors and brick-and-mortar stores but also over barber shops. the Internet. Spa, Gym, and Nail Care Business Direct Selling Business - offers a range of massage treatments - this business is also very common in that can relax the stressed areas of the the Philippines. It is a face-to-face body, as well as other skin treatments selling of products by a sales agent such as facials and body scrubs. Car Wash and Car Care Business Video and Photography Business - you often see this business in large - requires talent in capturing precious cities because of the proliferation of moments of celebrators at weddings, cars birthdays, anniversaries, graduations, Bar, Café, and Restaurant and other important events. - the number of foodies (food Tutorial Business enthusiasts) has increased because - caters to students who are not able to the Filipino palate has become catch up with their lessons, or those globalized. Filipino customers’ who just want to be ahead in class. demand for variety and quality taste has evolved as well. Baking Business Water Station And Lpg (Liquefied - a lot of bakeries are present in almost Petroleum Gas) Station all neighborhoods in the Philippines because bread is the second staple - these businesses can never go wrong food of Filipinos as they continuously serve households, supplying them with Web Site Development and their purified water and gas needs. Design/blogging Franchise or Startup Businesses - a blog may become famous or successful if the site has several Listed below are Entrepreneur Philippines’ followers or readers. Some people franchise business options in the Philippines, may earn cash by allowing companies which a potential entrepreneur can pursue to place ads on their blogs. after college or even after finishing the K to 12 Program:  Bakeries, bakeshops, and bread products Car Care Bars, Cafes, and Coffee shops Food snacks carts Beverage and Confectionery Gas stations/petroleum products General Merchandise and Retail Services (personal and business) Health and wellness (salon, massage, spa, and gym) Water Stations Schools Clothing and Accessories Convenience stores Drug stores and pharmacies Fast food establisments and restaurant Other Additional Business Opportunities Dealership Direct Selling Distributorship RECOGNIZING THE POTENTIAL MARKET resources efficiently, and running the The Entrepreneurial Process business sustainability. Opportunity Spotting And Assessment Determining the Capital Needed - Consumers are reliable sources of - It is mandatory in the opportunity information because entrepreneurial process to calculate market needs originate from them. the resources needed to establish the business and compare this against the Major sources of opportunity entrepreneur’s current resources. the glaring problems in the Running the Business environment, problems encountered by co-entrepreneurs, new trends, - This is the part where the processes, and developments in the entrepreneur should use the environment. resources allocated for the new venture. Minor sources feedback from distribution or SCANNING THE MARKETING ENVIRONMENT business partners such as retailers, 1. Opportunity Seeking wholesalers, manufacturers, and 2. Opportunity Screening technical people that the 3. Opportunity Seizing entrepreneur is working with. SEEKING THE OPPORTUNITY Developing a Business Plan Opportunity seeking is the first step and is - A business plan is a comprehensive the most difficult process of all due to the paper that details the marketing, number of options that the entrepreneur will operational, human resource, have to choose from. financial, strategic direction, and tactics of the business. The business A. STEEPLED plan will be the core guide and Socio-cultural factors - These factors direction of the entrepreneur in represent a general view of a locality’s calculating the resources needed, assessing how to obtain these traditions, customs, beliefs, norms, and This is the source of current trends on what perceptions. is happening in the industry where the future Technological factors - These are composed business will belong. of innovations of an existing technology or C. New discovery or knowledge an invention of a new one mostly in applied science and engineering research areas. These are new trends that can be the core business model of a new venture. Economic factors - These factors play a vital role in the scanning of the marketing D. Futuristic opportunities environment because economic factors directly affect any business venture. These are projected new opportunities that can possibly affect the new business while it Environmental or Ecological factors - is running. These factors should be given much importance in conducting business especially 2. Micromarket when the world has already suffered severely 1. Consumer preferences, interests, from human-induced calamities. and perception Political factors - These factors are mostly 2. Competitors induced by government policies and 3. Unexpected opportunities from administrations, which can have a strong customers effect on the entrepreneur’s business 4. Talents, hobbies, skills, and expertise Legal factors - Related to political factors, 5. Irritants in the marketplace such as legal factors are government laws and deterrents, problems, complaints, regulations that can restrict or allow business and delays activities. 6. Location Ethical factors - These are the factors that METHODS OF GENERATING IDEAS will serve as an entrepreneur’s guide on how to be ethical in running the business. Focused group discussion (FGD) Demographic factors - These are the - In this method, a moderator handles a characteristics of the people in the target very open, free-flowing, and market. in-depth discussion with a group of people who can provide insightful B. Industry  ideas about a new product or service intent, which will address the compelling that will fill a market need. needs of the target market. Brainstorming Risk Appetite - an activity that allows the participants - Refers to the entrepreneur’s tolerance to share creative ideas using the of business risks. following rules: Time - (a) no destructive criticism or judgment is allowed - must be considered by the - (b) wilder ideas are accepted entrepreneur in screening the - (c) more ideas are preferred opportunities at hand, as it is - (d) improvement of others’ ideas is considered one of the most critical allowed resources for an entrepreneur Brainwriting or Internet brainstorming SEIZING THE OPPORTUNITY - This is exactly the same as Opportunity seizing is the last step in brainstorming except that the channel opportunity spotting and assessment. This is used is not face-to-face, but in writing the “pushing through” with the chosen or online. opportunity. Problem Inventory Analysis Innovation - This method is similar to the FGD - process of positively improving an except that the participants are existing product or service. It is a key already given an inventory of driver for economic growth. product or service problems. Innovation is inevitable as the world constantly changes. Therefore, products and services must also adapt SCREENING THE OPPORTUNITY to these changes. Opportunity screening is the process of Three Types Of Innovations According To The cautiously selecting the best opportunity. Degree Of Distinctiveness: The selection will depend on the entrepreneur’s internal intent, i.e., the main objective that the business will accomplish in the entrepreneur’s life, and the external  concept stage. In the concept stage, the Breakthrough Innovation developed idea will undergo a consumer - These innovations, which may also acceptance test. include inventions, occur infrequently Product Development Stage as these establish the platform on which future innovations in an area In this stage, the entrepreneur leverages on are developed. the information generated from the prospective customers via the concept stage. Technological Innovation Actual reactions from prospective customers - These innovations occur more are determined. frequently than breakthrough Test Marketing Stage innovations. These innovations are technological advancements of an This stage validates the work done from the existing product or service. first three stages to measure success in the commercialization of the product or service. Ordinary Innovation - These innovations occur ordinarily as the name implies. They are commonly originating from market analysis and technology pull instead of a technology push. PRODUCT OR SERVICE PLANNING AND DEVELOPMENT PROCESS Idea Stage In this stage, the entrepreneur determines what are the feasible products and/or services that will perfectly suit the opportunity. Concept Stage Once the acceptable product or service has already been identified, it will go through the THE MARKETING PLAN METHODS: 1. Estimate The Potential Market - the MARKETING PROCESS approximate number of customers that will buy the product or avail of the service. Identifies the customers’ needs where you are 2. Eliminate The Customers - who are tasked to create a meaningful value proposition unlikely to buy the product or service. 3. Estimate The Market Share - plotting and VALUE PROPOSITION (VP) calculating the competitors’ market share (via - why a customer should buy a certain surveys, customer reviews, etc) product or service. UNIQUE SELLING PROPOSITION (USP) CUSTOMER REQUIREMENTS - how will you sell the product to Marketing Intelligence service your customers. It addresses the customer's wants and desires - Customer profiling drives the MARKETING RESEARCH entrepreneur on what correct strategies and tactics to employ. This - one of the most critical tasks of an can only be obtained through a entrepreneur meticulous market segmentation - comprehensive process of process. understanding the customer’s Market Segmentation intricacies and their industry - process of grouping similar or MARKET SIZE homogenous customers according to - simply the size of the arena where demographic, psychographic, the entrepreneur’s business will play. geographic (location), and behavior - It is the approximation of the number - necessary activity in marketing of buyers and sellers in a particular because it gives the entrepreneur a market holistic and general view of the market group that he or she is in. DEMOGRAPHIC PSYCHOGRAPHIC DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION - also called socioeconomic - grouping customers according to their segmentation perceptions, way of life, motivations, - grouping customers according to and inclinations. relevant socioeconomic variables for PERCEPTION the business venture. These socioeconomic variables include - an individual that receives external income range and social class, stimuli using the five senses of occupation, age, religion, and hearing, touching, smelling, seeing, ethnicity. and tasting. INCOME RANGE AND THE SOCIAL CLASS PHYSIOLOGICAL MOTIVATIONS - represents the purchasing power of - involve the needs of the person (e.g., the market. food, clothing, shelter); they seek to avoid pain and give pleasure. OCCUPATION PSYCHOLOGICAL MOTIVATIONS - determines the customers’ income and their daily routine where goods - involve customers’ preferences (what and services can be properly customer likes or dislike). positioned ASPIRATIONS GENDER AND AGE GROUP - customer wants to achieve (e.g., inner - data that must be mined because the peace, financial stability, work-life life cycle of customers and their balance) gender influence their buying DEPRIVATION behavior. - customer’s recognition of certain RELIGION AND ETHNICITY voids to fill (e.g., lack of financial - affects the way they buy products or security, lack of love, lack of avail of services. knowledge)  product or avail of the service GEOGRAPHIC consistently. GEOGRAPHIC SEGMENTATION USAGE OF PRODUCTS OR AVAILMENT OF SERVICES - grouping customers according to their location - factor that describes to the entrepreneur how often a product is - small as a street, a village, or a barangay. It being used or the service is being can also be based on municipality, city, availed. province, or region. It can be as big as a country or continent depending on the entrepreneur’s business objectives. MARKET AGGREGATION - happens when an entrepreneur wants BEHAVIORAL to target a broader market as possible because the product or BEHAVIORAL SEGMENTATION service that the business offers is - grouping the customers according to suited for undifferentiated markets their actions. These behaviors are such as fruits, vegetables, rice, water, instigated by occasions, desired and bread, as well as services such as benefits, loyalty, and usage of haircuts, plumbing, or transportation. products or availment of services. - CUSTOMERS’ DESIRED BENEFITS THE 7P’s OF MARKETING - efficient because the entrepreneur 1. Product - physical good, service, or determines the exact needs of the idea created by an entrepreneur or customers and offers the most suited innovator in serving the customers' product or service for them. needs and addressing their existing problems. LOYALTY CONCEPT OF PRODUCTS OR SERVICES - the result of maintaining satisfied customers. The goal of every Level 1: Core Benefits of the Product - entrepreneur is to inform, persuade, or Service and remind customers to buy the Level 2: Physical Characteristics of the Product or Service  Level 3: Augmented Benefits of a have become a major influence in the Product or Service customer’s buying behavior. 2. Place - location or the medium of 6. Packaging - product or service is transaction. A strategic location presented to customers. It is the depends on the nature of the business overall identification (look and feel) and the primary target market. of the product or service. This will 3. Price - The peso value that the determine the uniqueness of the entrepreneur assigns to a certain product compared to competitors. product or service after considering This is the first element that its costs, competition, objectives, customers see as they don’t know positioning, and target market. what’s inside yet. Bundling 7. Process - step-by-step procedure or Penetration Pricing activity workflow that the Skimming entrepreneur or employees follow to Competitive Pricing effectively and efficiently serve Product Line Pricing customers. Its components include Psychological Pricing input, throughput, and output. Premium Pricing FUNDAMENTAL OF BRAND MANAGEMENT Optimal Pricing Cost-based Pricing BRAND Cost Plus Pricing 4. Promotion - presenting the products identity of a company, a product, a service, or or services to the public and how an entrepreneur himself or herself a symbol these can address the public’s needs, of promise or assurance from the wants, problems, or desires. entrepreneur that what it purports to the customers will happen. PROMOTIONAL TOOLS 1. Advertising 2. Selling 3. Sales promotions 4. Public relations 5. People - how people or employees serve and make a difference in the lives of the customers. Employees PRODUCT DEVELOPMENT AND OPERATIONS - Creating a prototype provides the Fundamentals of Product Development entrepreneur with a window to test Product or Service Description the performance and specifications of various materials and service - It should directly address the processes. Every detail of the product primary target market in a personal or service should be scrutinized manner using everyday language. carefully, and all flaws be addressed The entrepreneur should put himself right away before commercialization. or herself in the customer’s shoes, - helps the entrepreneur effectively where the product description will be describe the product or service. addressed. Members of the product team include - It should highlight the features that marketing, operations, engineers, will cater to the customer’s needs or suppliers, business partners, and legal address the customer’s problems. and human resources. It provides the - Realistic superlatives should be product team with the information used for the product description. needed to create the right product Motherhood statements such as or service as planned. “world-class service or product - Creating a prototype elicits respect excellence” may not matter to the from key stakeholders and customers at all. customers. At the same time, a Creating a Prototype of the Product or prototype gives credibility to the Service entrepreneur. Some entrepreneurs only present vague and big ideas but - Creating a prototype enables the no details as to its feasibility and entrepreneur to engage in trial and implementation. error, provides room for improvements, and refines the Creating a Prototype functionality of the product design - the stage where the entrepreneur can or service process. It is very experiment, develop, and make some expensive and risk-intensive to improvements in the potential commercialize a product without product or service. The objective of creating a prototype. the entrepreneur at this stage is to  verify if the product or service Product Costing Test – The entrepreneur concept will work in the simplest, must examine every stage of the fastest, and cheapest way. manufacturing process or every process of Testing the Prototype the service blueprint to evaluate and finalize the costs involved. - vital process before an actual product or service is launched to the Component Test – Each component of the market. Testing the prototype will product or service must be tested uncover the final loopholes that independently to identify component failures need to be fixed before for goods or service failures for services. Any commercialization. It gives the failure identified must be redesigned and entrepreneur leeway to examine and tested again until it becomes fully operational scrutinize the prototype and provide and functional. feedback as to what can be improved Competitor’s Product/Service Test – The before the launch. entrepreneur must test a similar line of Focus Group Discussion – The participants products or the competitors’ products or will provide relevant insights about the new services to compare and get the best practices product or service. The objective of the FGD is to be applied to the new product or service. to identify errors, deficiencies, and issues that Validation of Market Acceptability may impede the success of the product. - is the process of finding out if the Legality and Ethical Test – Before launching, intended primary target market will the entrepreneur must ensure that the buy the product or avail of the service. product or service complies with all relevant - Market acceptability is a critical factor laws and regulations and has a necessary that the entrepreneur must validate license or permit to operate a particular before launching the product or business. service because this can strongly Safety Test – The entrepreneur must ensure suggest if the business will be that the product is safe to use, safe to be successful or not. It either validates consumed (food and beverages), and safe to or disconfirms the perception of the be applied (cosmetic products). The product entrepreneur about the suitability of should not in any way harm the customer or the chosen primary target market. put the customer in peculiar situations. THE 4 M’S OF OPERATIONS  1. Methods Inputs – the materials or ingredients to be 2. Manpower used in creating the product. 3. Machines Process – the transformation phase where 4. Materials inputs are processed by manpower and METHODS machines to come up with the final product - represents the day-to-day operations Output – the final product of the process of a business. stage, which is limited to be sold to target - describes how an entrepreneur will customers run the business from all facets of the The entrepreneur must consider the most business such as the manufacturing of efficient manufacturing site in which the goods, service delivery process, manufacturing process will take place. distribution of goods and services, Depending on the entrepreneur’s objective logistics for delivery of goods, and and financial capacity, he or she can opt to inventory management, to name a have any of the following manufacturing sites: few. - The entrepreneur has to be very Home-based – Most startups do not have the detailed in formulating these financial capacity to establish a processes and must ensure that the manufacturing site. Thus, their only option is customer experience will be pleasant to manufacture goods at home. This option is and seamless. the cheapest and highly flexible. The - the processes must abide by the entrepreneur can start with products that are industry standards and policies usually manageable to be processed at home where the business belongs (e.g., ISO such as food products and customized certification) clothes. - The entrepreneur who will engage in Commercial space for rent – This is producing his/her products will have advisable if the business really requires a to consider the basic guidelines and commercial space for the processing of goods principles in manufacturing. and if the home option is not viable anymore. Manufacturing - the process of translating A commercial space gives the entrepreneur raw materials into finished goods that are a more specialized and suited acceptable to the customer’s standards. It manufacturing site than manufacturing at consists of three elements: home. However, this is more expensive than manufacturing at home and requires the distribution of the products to the long-term commitment because the customers. The entrepreneur may entrepreneur will need to go sign a lease also buy the finished goods from the agreement. manufacturers and plan how to distribute them efficiently to target Commercial space purchase – This option distribution centers or customers. requires the biggest amount of capital Distribution is not a straight expenditure, but it also provides the process from the entrepreneurs to entrepreneur substantial freedom and the customers; thus, the term supply flexibility to design and run the commercial chain or distribution channel was space. Compared with renting, purchasing a coined. commercial space is considered more of an investment than an expense. Payment Process Service Delivery Process - The entrepreneur must also establish a seamless payment process. - The entrepreneur who will engage in Generally, there are no problems if the a service business must be more customers pay in cash. But there are meticulous when it comes to the instances when they do not want to service delivery process. This is pay in cash and are usually attracted because services are intangible, and by flexible and customer-friendly the only way the customer can payment terms such as credit cards, appreciate the service is by installment plans, or simple remembering how pleasant his or her accounts payable or pautang. The experience was. Moreover, a seamless entrepreneur must ensure that credit service saves the entrepreneur a huge payments are seamless and that the chunk in operational costs. customers are aware of the terms and Distribution Method conditions of the credit. - One of the basic processes to be MANPOWER considered thoroughly is the - The entrepreneur must be very keen distribution process. Distribution is in selecting and hiring an employee. the process of bringing the products He/she must ensure that due or services to customers. In selling diligence is performed to check the physical goods, the entrepreneur must background of the applicant. plan the location, the processes, and  Manpower is one of the highest costs standardized and seamless. Without of operating a business but is also machines, business operations will be the most instrumental to its success. cumbersome, costly, and of low Having the right people encompasses quality. a myriad of advantages. Equipment and Other Facilities Job Description - The sizes and shapes of the facilities - enumerates the duties and and equipment affect the operations responsibilities of the potential process, so the site must adapt to how employee, including the scope, big or small the pieces of equipment limitations, and terms and are. The site must also be conductive, conditions of employment. The well-ventilated, and well-lit so that heading of a job description is the job the employees can manage the title, which is the summary of what machines efficiently. There should be the employee will do. The fire exits and safety reminders on how entrepreneur should devise a to use the facilities to ensure the respectable and decent job title safety of the employees. The because the title boosts the equipment to be used should all be self-confidence of the employee. compliant with safety requirements to prevent accidents. EMPLOYEE QUALIFICATION Telecommunications and Information 1. Educational background Technology 2. Work experience 3. Specific skill or knowledge Landline phones 4. Work attitude Mobile phones (smartphones, tablet computers, Machines phablets) - Machines have become one of the 4Ms Laptop and desktop computers because they are an important aspect POS machines of goods and service production, and Accounting and inventory software they have changed the way Website entrepreneurs conduct business. - pertain to new technologies that help business operations become  in developing the business model. These are MATERIALS the three “green lights” or the positive - Whether the entrepreneur will offer signals that can help entrepreneurs develop products or cater service, he/she has ideal business models and eventually succeed. to pinpoint a number of dependable On the other end, there are three “red lights” suppliers of quality raw materials and or negative signals that entrepreneurs should supplies. The supplier must have a be wary of. consistent and sufficient amount of THE GREEN LIGHTS raw materials and supplies that can accommodate the demands of the Target High-Value Customers entrepreneur. These customers are often misinterpreted as - In short, the selection of suppliers affluent or high-end customers, but this is not depends largely on how the always the case. A high-value customer is suppliers will not cause interruptions in the production of 1. someone easy to find, goods or serving the customers. 2. someone willing to pay a price that From the onset, the entrepreneur will reasonably profit the should decide on what route to take entrepreneur, when it comes to materials 3. someone easy to persuade with the requisitioning. least promotional effort, and 4. someone who can join the Options include the following: bandwagon of customers that, when 1. manufacturing own products or offer consolidated, can generate a services; substantial amount of revenues 2. outsourcing of manufacturing or aligned with the profit objectives of service activities to a third party; and the entrepreneur. 3. purchasing own product or service Offer Products Or Services With Great Value from present suppliers. The value proposition and unique value THE BUSINESS MODEL proposition should always kick in as According to Don Deebelak in his article compelling reasons for customers to choose “Developing a Great Business Model” on the your product or your service. Without these, Entrepreneur Website, the entrepreneur the entrepreneur cannot develop a successful must adapt to the dynamics of traffic lights business model. The entrepreneur must position the unique attribute(s) of his or Being A Market Leader Is Difficult To Sustain. her product or service. He or she must also devise an efficient distribution system where One of the characteristics of an ideal business the flow of goods or service delivery is model is capitalizing on the business’ stature convenient, fast, and available when needed. as a market leader by improving the features and benefits of its existing products or Offer Products Or Services With Reasonable services, adding new product lines or Profits services, or expanding by tapping new There are two ways of achieving reasonable customers. profits: Return on Investment (ROI) Takes Too Long 1. increasing markup and and Too Small 2. decreasing operational costs. Entrepreneurs venture into a business The most practical way to achieve reasonable enterprise because they want to earn profits profits though is to decrease operational for the purpose of sustainability. ROI is very costs. This is because increasing the markup, important to the entrepreneur because it as compared with the prices of competitors, validates that the business is doing well will decrease the attractiveness and and that money is flowing in as expected competitiveness of the product or service. during the planning stage. An ideal business THE RED LIGHTS model is characterized by a reasonable ROI earned at the right time and with the right Satisfying The Customer Becomes Too Costly amount. And Irrational The entrepreneur must calculate the cost That is why we never give up. Though and profit associated with serving the customer before pursuing the business. our bodies are dying, our spirits are There are times when entrepreneurs are being renewed every day. For our blinded by how big the profit margin can be present troubles are small and won’t for the sale of a particular product or service. last very long. Yet they produce for But little do they know that there are us a glory that vastly outweighs them numerous associated after-sales costs that and will last forever. can even exceed the profit margin derived 2 Corinthians 4:16 from the actual sale. Good luck, everyone!