IMs-for-Opportunity-Seeking PDF

Opportunity Seeking ENTR 20023 Week 1 - Briefing of the subject 3 Week 2 - Proposing a feasibility study 4 Week 3 - Finding project funding: A guide for first-time business owners 5 Week 4 – Understanding the Compe...

Opportunity Seeking ENTR 20023 Week 1 - Briefing of the subject 3 Week 2 - Proposing a feasibility study 4 Week 3 - Finding project funding: A guide for first-time business owners 5 Week 4 – Understanding the Competitive Market 9 Week 5 - Financing Companies in the Philippines 16 Week 6 – the Entrepreneurial Mindset 21 Week 7 - The importance of a Business Strategy 22 Week 8 - Resilient Attitude in the Business 25 Week 9 – Midterm Examinations 29 Week 10 – Entrepreneurs and the Businessman 29 Week 11 – Emotional Intelligence in Business and Leadership 31 Week 12 - Why is Emotional intelligence Important in Business? 32 Week 13 – Entrepreneurial Mind frame 34 Week 14 - Anatomy of an Entrepreneur 35 Week 15 – Business Networking 41 Week 16 – Opportunity Seeking in the Business 43 Week 17 – Business Plan Preparation 46 Appendices: Case Exercises 49 References 51 2 Week 1: Briefing of the subject and Expectation Setting Overview and significance of course Course requirements Grading system Course expectations and teaching pedagogies PUP Vision, Mission, Goals PUPQC History PUPQC Mission, Goals and Objectives 3 Week 2 - Proposing a feasibility study A feasibility study is a detailed analysis that considers all of the critical aspects of a proposed project in order to determine the likelihood of it succeeding. Success in business may be defined primarily by return on investment, meaning that the project will generate enough profit to justify the investment. However, many other important factors may be identified on the plus or minus side, such as community reaction and environmental impact. Although feasibility studies can help project managers determine the risk and return of pursuing a plan of action, several steps should be considered before moving forward. Key takeaways A company may conduct a feasibility study when it's considering launching a new business, adding a new product line, or acquiring a rival. A feasibility study assesses the potential for success of the proposed plan or project by defining its expected costs and projected benefits in detail. It's a good idea to have a contingency plan on hand in case the original project is found to be infeasible. Understanding a Feasibility Study A feasibility study is an assessment of the practicality of a proposed plan or project. A feasibility study analyzes the viability of a project to determine whether the project or venture is likely to succeed. The study is also designed to identify potential issues and problems that could arise while pursuing the project. As part of the feasibility study, project managers must determine whether they have enough of the right people, financial resources, and technology. The study must also determine the return on investment, whether this is measured as a financial gain or a benefit to society, as in the case of a nonprofit project. The feasibility study might include a cash flow analysis, measuring the level of cash generated from revenue versus the project's operating costs. A risk assessment must also be completed to determine whether the return is enough to offset the risk of undergoing the venture. Lesson Activity 1 1. Discuss the importance of the feasibility study in the business? 4 Week 3 - Finding project funding: A guide for first-time business owners Starting a business can be daunting, especially if it’s your first one and you don’t have a lot of capital saved up. However, with some research and effort, you’ll find multiple financing sources beyond your own pocket. Here are the most common startup funding for a business project in its earliest stage of growth. A. Personal Savings Most entrepreneurs rely on their own money for their first business venture. Personal savings can come from your salary, cash gifts from family and friends, interest rate income from your savings and investments, and/or sales of assets and personal belongings. Thanks to the internet, more part-time jobs are available for people who want to earn additional income. You can search for these jobs through JobStreet, LinkedIn, Facebook or Upwork. If you have a vehicle, you can consider working for Grab or Lalamove. For less time and effort earning project finance, you can sell non-essential belongings on Facebook Marketplace or Carousell. Another way is keeping your money in high-yield savings accounts. Digital banks, e-wallets and neobanks like Tonik, Maya and Seabank offer as much as 6% savings interest rates without minimum deposits or maintaining balance. Personal savings are best for low-capital businesses, such as small-scale online stores, food stalls, or franchises. It might take longer to accumulate funds for a more capital- intensive business. With personal savings as project financing, you won’t have to worry about paying anybody loan interests or possible penalties. However, because you’re only accountable to yourself, you might be tempted to overspend or not follow through on your business goal. 5 Your startup funding should also not be taken from your emergency fund, as you’ll still need a safety net from medical emergencies, calamities or other unexpected events. B. Private Investors Private investors are family, friends, or acquaintances in your network with the capacity to invest in your business idea. Not everyone in your circle will be willing to provide project fu nding without any promise of returns or interest. Some even demand to take an active role in your business in exchange for project finance. Before even asking others for project funding, ensure you already have these concerns figured out. Then, prepare a written business plan that explains your idea, growth projections, estimated return-on-investment (ROI), and potential risks. In addition, clarify the investor’s role, what they can expect in exchange, and how long they’ll have to wait before seeing any returns. C. Personal loans Most business loans from private and government sectors are typically limited to established businesses with at least one year of operations and a record of stability or profitability. While some lenders have business loans specifically for startup funding, they usually require a high personal income, a profitable business idea with good sales projections, or even collateral in the form of real estate or bank deposits. This leaves most new entrepreneurs with personal loans for project financing. Personal loans range from ₱10,000 to ₱2 million, depending on the lender you approach and your current financial capacity. However, personal loans are a riskier source of startup funding. You'll still be required to pay a loan back plus interest even if your business fails. To prove you can pay your loan, you must present proof of your personal income such as pay slips, income tax returns, and BIR Form 2316. Personal loans can be in the form of term loans or credit cards. Term loans provide a lump sum of capital, which is best for buying high-cost items. A credit card lets you borrow any amount from a set credit limit; it is better suited for small expenses like inventory and utilities. They also have very different loan amounts, interest rates and repayment terms. Term loans are paid monthly from 6 6 months to up to 60 months, with interest rates between 1.25% to up to 30% per month. Credit cards have up to 2% monthly interest rate but tend to have smaller credit limits, a monthly minimum repayment, and different interest rate computations and/or fees depending on your usage. Another source of project funding is informal loans from your own network. While you may be able to negotiate better terms and interest rates with people you know, be aware that your rights as a borrower will not be protected by financing regulators such as the SEC if something goes awry. Your relationship with the lender and personal reputation will also be at stake if you fail to pay your debts D. Angel investors Angel investors are rich individuals or groups that pool their money to finance startups and early-stage businesses with profitable ideas. These project funding sources are often professionals or business owners themselves who can connect you with other rich individuals, potential customers, or mentors. They can also provide up to millions in project financing, especially if you secure multiple investors. Unlike banks, angel investors usually do not ask to be paid back with the original amount plus interest. They are repaid with shares or a percentage of your ROI. A detailed business plan with sales projections is essential to secure their project funding; it’s also best to be open to changes potential investors will suggest. Manila Angel Investors Network Inc. (MAIN) is one of the more well-known investor networks, providing project finance for startups in up to 16 industries such as financial inclusion, entertainment and education. E. Venture Capitalists Venture capitalists are firms offering millions to billions in investment financing for startups and growing businesses. They also provide guidance in more complex business concepts to bring a startup to early or mature stages of growth. Unlike angel investors, venture capitalists ask for a higher level of ROI and involvement in your business. In certain situations, they will even nominate their own experts in key business positions. Applying for this project funding is more mentally and psychologically challenging. Venture capitalists seek long-term profits and detailed business plans – including your exit strategy should the business fail. Most require up to 30% of your ROI or profits, a management position in your business or board of directors, and/or equity ownership. 7 You can get massive startup funding from venture capitalists in and out of the Philippines. Most focus on businesses in the tech space, such as Kickstart Ventures of Globe Telecom. They fund startups disrupting traditional industries like finance, health, media, and telecommunications. F. Business grants Business grants come from government or private entities that aim to boost certain industries, promote certain advocacies, or help underprivileged sectors. For this reason, these financing sources have free or low interest rates. However, business grants often offer lower amounts, which may not be enough to get capital-intensive startups off the ground. Applying for this project funding is also highly competitive. Apart from your startup being aligned with a certain advocacy or industry, grant sources usually consider your potential for scaling or mass production. Some examples are the HEAL (Health, Education, Arts and Livelihood) Program of Metrobank Foundation, Inc., and the business ayuda programs of GoNegosyo and local government units. Lesson Activity 2 1. Differentiate the various funding sources in the business 2. What is the importance of funding in the business 3. Which of the funding opportunity do you think is most practical and why? 8 Week 4 – Market Condition and the Customers Market conditions is a term that refers to the state of an industry or economy. The term is commonly used in reference to stock and real estate markets, which are often described as being volatile or stable. These conditions are an indicator used by many to influence their decisions. These indicators, however, do not translate in the same way for all parties. Furthermore, they generally cannot be relied on for extended periods without reevaluation because market conditions are rarely permanent. The fluctuation of markets is driven by a wide range of factors. A primary example is the economy. The flow of money, the access to credit, and the stability of employment play a major role in the state of markets locally, nationally, and globally. Market conditions can therefore refer to an overall state of affairs or to the condition of a particular industry. Consider the stock market, which is very broad because it is composed of interests in a wide range of industries. During times when an economy is generally considered bad, the stock market may suffer because investors may inject less money than they previously had. In this instance, overall, the market may be summarized as being down. That the market is down, however, may not be representative of the condition of every industry or business on the stock market. There may be specific industries, such as precious metals, that do exceptionally well during this period. Within the precious metals industry, however, there may be companies that perform very poorly. People normally take note of market conditions to help them make certain decisions. This can be particularly important for businesses and for investors. It is important, however, for those making decisions to avoid relying too heavily on general descriptions. At the same time, it can also be important for individuals to avoid ignoring market conditions or the factors that are influencing them. Market conditions are important indicators. They often determine who should act and in what capacity they should do so at a given time. For example, depending on the state of the real estate industry, it may be considered a buyers' market or a sellers' market. This means that the conditions at a given time favor one group over the other. During a buyer's market, sellers may be inclined to hold their properties because prices are low, which will result in losses if they decide to act. Although the state of affairs may be described as volatile or stable at a given point, market conditions themselves are generally volatile. Conditions may change rapidly or after some time. For this reason, business entities and investors cannot rely solely on present conditions over the long term without reevaluation. Doing so will result in decision making based on outdated indicators, which could be devastating. 9 What Are the Four Conditions of a Purely Competitive Market? A purely competitive market, also referred to as a perfectly competitive market, describes a hypothetical market structure characterized by four specific conditions: a sizable number of buyers and small-scale firms, sellers with identical products, no restrictions to market entry and exit, and comprehensive knowledge of products and prices available to buyers and sellers. This model exists only when these conditions are present. A. Many Buyers, Many Sellers Unlike in a monopolistic structure, no single firm dominates a purely competitive market. Instead, there are many sellers and each one represents a small portion of the overall market share. Buyers are plentiful, too, which along with the number of sellers, stabilizes supply and demand. B. Homogeneous Products Consumer preferences play little to no role in a purely competitive market as products have no distinguishable features. As a result, prices are determined by supply and demand, not sellers. This is known as price-taking, in which firms must either accept the market price or risk losing business. Even raising prices by a fraction will drive customers to competitors. C. Free Entry and Exit In a purely competitive market, businesses enjoy zero barriers to entering and exiting the market. Loose or nonexistent government regulations and low startup costs make it easier for new companies to enter the marketplace. What Conditions Must Exist Before a Marketing Exchange Can Occur? A marketing exchange is when two or more parties engage in a transfer of goods, services, or intellectual property. This is a mutually beneficial arrangement in which each participant gains something of value by offering a useful commodity that the other party desires in return. Five conditions must be met for an exchange to take place: There must be at least two parties. Exchange potential only exists when a minimum of two parties are interested in facilitating a trade. Each party must possess something deemed valuable by the other. For a successful change to occur, every participant needs to feel confident they are getting more than what they are giving. Everyone involved in the exchange should be willing and able to communicate effectively, meet agreed-upon expectations and follow through on delivery. 10  Establishing and maintaining trust is key to ensuring a satisfactory transaction and securing future exchanges. All parties must be able to accept or reject the proposed terms of an exchange. The intended result of any marketing exchange is to obtain something that satisfies a particular want or need. Any party should be free to negotiate if they consider offers to be insufficient or unsatisfactory. There should also be an option to withdraw so long as no violations of any legal agreements exist. Each party is committed to the exchange and can trust that the other party will approach the transaction with the same resolve. Before initiating an exchange, interested parties must determine the suitability of prospective participants. Once both parties are on board, all correspondence relating to the exchange should be clear, respectful, and sincere. What Conditions Can Cause a Market Failure? An ideal market maintains an equilibrium between supply and demand. Any disruption to the balance can create a market failure, which is the inefficient organization, production, distribution, and allocation of goods and services. Market failures can occur for a number of reasons but are commonly attributed to one or more of the following causes: negative externalities, public goods, and disproportionate market control. Negative Externalities Externalities refer to consequences inflicted on a party that is not directly involved in marketing activities. These effects can provide a benefit (positive externality) or impose an unwanted cost (negative externality). Excessive noise, pollution, and congestion are examples of negative externalities that can adversely impact markets by posing ethical, political, social, or public health issues. Public Goods Public goods such as national defense, education, and infrastructure are provided by a central entity, typically the government, to all consumers regardless of ability to pay. As a result, it’s near-impossible to produce an optimal amount of public goods. Disproportionate Market Control In a monopolistic structure, a single supplier holds majority market power. This concentrated control effectively eliminates competition resulting in inadequate supply, poor quality products, and premium prices. 11 Identifying customer needs Before you start promoting your business you need to know what your customers want and why. Good customer research helps you work out how to convince your customers that they need your products and services. Identify your customers The first step of customer research is identifying your customers. Your market research should help you understand your potential customers. Further customer research can help you develop a more detailed picture of them and understand how to target them. It will also highlight key characteristics your customers share, such as: gender age occupation disposable income residential location Recreational activities. Understand why they shop Once you've identified who your customers are, you can find out what motivates them to buy products and services. For example, consider if they make decisions based on: work demands family needs budget pressures social or emotional needs Brand preferences. Identify preferred shopping methods As well as understanding why they shop, you will also want to understand how they shop. To learn about your customers' preferred method and means of shopping, consider if they: shop online, over the phone or in stores make spontaneous or carefully considered buying decisions. Consider their spending habits Different types of customers will be willing to spend different amounts. Find out what financial capacity and spending habits your customers have. For example, consider: 12  their average income the portion of their income they spend on the type of products or services you sell if they have the budget. Find out what they think of you Learn about your customers' views and expectations of your business and rivals. For example, find out what they think of your: products and services customer service competitors. Understanding the Competitive Market Identifying your competitors. Your competitors are not always who you think they are. For example, if you are a manufacturer of popcorn products, your direct competitors are probably other brands of popcorn in the market. But what about tortilla chips, peanuts, snack mixes, or potato chips? And what about rice cakes, candy bars, cake/pie items, rolled candy, gum, or frozen confections? The target consumer may be making a choice among all these items for a "snack" purchase, including popcorn. Or the target buyer may be considering a drink purchase among alternatives for a "snack." Your company must narrow the choices and decide which industry, product or service categories, brands, geographic areas, channels of distribution, etc., to compete in. Without this knowledge and analysis, your marketing programs will not be effective and efficient, particularly if you have a very limited budget. Competitor levels It may help to think of your competitors as a series of levels, ranging from your most direct competitors to those who are more remote. Direct competitors. These competitors offer a product or service which is interchangeable with yours in the eyes of the consumer. In the popcorn example, above, the direct competitors are those companies selling popcorn. If you are an accountant, then your direct competitors would be other accounting firms. Or, if you operate a local garden center, you may compete against the other garden centers within a 10-mile radius. 13  Substitute or alternative competitors. These competitors offer similar products in a different business category or are more geographically remote. As seen in the example above, the popcorn vendor is also competing with potato chips, corn chips, and tortilla chips. The accountant may be competition with "off the shelf" accounting and tax software. Using the example of the garden center, a discount chain that sells garden supplies and plants in season is also your competitor, as is a landscaping contractor who will provide and install the plants, and a mail-order house who sells garden tools and plants in seed or bulb form. None of these competitors provides exactly the same mix of products and services as you, but they may be picking off the most lucrative parts of your business. "Available spend" competitors. These competitors compete for the "same- occasion" dollars. In this case, the popcorn seller may be in competition from the soft drink or an ice-cream vendor. Inasmuch as gardening is a hobby, third-level competitors might be companies that provide other types of entertainment or hobby equipment; inasmuch as gardening is a type of home-improvement, competitors might be providers of other home-improvement supplies and services. Identify your competitors' strengths and weaknesses You should be very aware of your direct competitors—in many cases, you'll know them by name and may even belong to the same business associations they do. If you don't know much about their business operations now, make sure that you do soon. It's to your advantage to know as much as you reasonably can about the details of their businesses. Study their ads, brochures, and promotional materials. Drive past their location (and if it's a retail business, make some purchases there, incognito if necessary.) Talk to their customers and examine their pricing. Learn what are they doing well and what they are doing poorly. Secondary data, as well as information from your sales force or other contacts among your suppliers and customers, can provide rich information about competitors' strengths and weaknesses. Basic information every company should know about their competitors includes: a. each competitor's market share, as compared to your own; b. how target buyers perceive or judge your competitors' products and services; c. your competitors' financial strength, which affects their ability to spend money on advertising and promotions, among other things; d. each competitor's ability and speed of innovation for new products and services; 14 Is the cost of competition too steep? Obviously, your most important objective as a small business is to survive and make money. Realistically speaking, there may be times when you'll decide, after careful analysis, that the competition in one area is simply too formidable. Here are some situations that may indicate that the cost of direct competition is unwise and ineffective, from a sales and marketing perspective. Can you be the low-cost provider? Businesses based on the idea of providing less expensive products and services to customers can be extremely competitive. One problem such companies face is that the customer base is not loyal and will rapidly switch to another company depending upon what is on sale. Companies that successfully occupy low-cost niches frequently have many resources and a large size to weather these rapid switches by customers. They may be so large that the cost of a competitive company entry keeps the number of potential competitors down What will your competitors do next? Once you know the identity of your most direct competitors and have a good idea as to your second- and third-tier competitors as well, you should give some thought to which actions they are likely to take in the next year or so. Estimates of competitors' future activity depend on your knowing and understanding of their objectives, strength in the marketplace and resources. This important intelligence is key to your company's: annual forecast of sales, spending, and profits promotion and advertising programs introduction, support, and success of new products and services market, product, or service category, and sub-category trends direction for future growth Lesson Activity 3 1. What is the importance of the competitors in the business? 2. Discuss the various conditions that can fail the market. 3. Explain the Four Conditions of a Purely Competitive Market 15 Week 5 - Financing Companies in the Philippines The list will give you some of the best financial services companies in Philippines. 1) BancNet This is a financial company established in Philippines and connects the networks of ATM with the local banks and the offshore banks. It is one of the largest interbank in Philippines and has a number of transactions every year. It is also a gateway in the UnionPay in China and allows access to 1 billion cardholders of ATM. The cardholders of the company can make some cash advances widely in the country and it also connects with the networks of MasterCard. This company provides services to almost 41 million clients. 2) Bankard The company is one of the biggest and largest ones that issue credit cards in Philippines. This company issues credit cards of the type CUP, JCB, Visa and MasterCard. Also was managing debit cards issuing in the 90s. This bank has 25 years of experience in the financial services that offers and is definitely one of the best companies in the finance industry. 3) Beep This company is like a replacement of the system with magnetic cards in the payment methods. It is located in Metro Manila and is operated and managed by AF Payments Incorporated which was owned by the investment corporation of Metro Pacific. In some businesses used cash financing services and the paying was based on the rapid transit of the fares of transportation. 4) MegaLink This Interbank is located in Philippines and connects networks of 13 ATM participants in the country. It connects 2,921 ATMs in the country and manages more than 795,000 transactions every day. 16  MegaLink has 13,1 million members that have cards in the network company and is one of the largest in Philippines. It is based on the motto that the cards are for everyone. 5) Expressnet This financial company is an Interbank that connects the network of the ATMs in 7 banks in the Philippines. It contains the smallest number of costumers and is the 2nd company in the country with the largest number of ATMs. It is based on strength and is led by the motto that provides powerful connection. The company has been purchased by the rival BancNet. The company operates every day, 24 hours and provides the required financial services to its customers. It has more than 3.5 million clients. 6) Encash Network Services The company is also known as ENS and is an independent one that is associated with the ATMs of 4 rural banks. It is situated in Philippines and is much expanded nowadays. The aim and the focus of the company is on the rural banks and the cooperatives in the country and provides solutions with low cost. The company cannot allow itself to connect to the major networks in the country but is one of the firs companies that adopted the EMV technology. 7) The Philippine Dealing & Exchange Corp The company is managing the exchange among the big banks in Philippines. The aim and primary cause is the exchange in the sectors of the stock change in the country. It is also a licensed company by the commission of exchange in Philippines and provides a centralized infrastructure. Offers services like protection for the investors, transparency, discovery of the price, it is responsible for the compliance in the market and more. 17 8) Philippine Prudential Life Insurance Company Inc This is an insurance company that is a private and is established in Philippines. It was founded in 1963 and is among the best 15 insurance companies in the country. It was founded by Daniel L. Mercado and currently is managed by his grandson. 9) Philippine Rating Services Corporation This is a company that provides the rating for the banks, the commercial paper, the bonds, the local governments, and some other financial companies and institutions. The company also offers finance transactions and security. 10) The Philippine Stock Exchange Inc This is a national stock exchange established in 1992, in Philippines. The national exchange was working from 1927 in the country and now is operating in 30 companies. Importance of funding for startups The benefits of funding for business sometimes go beyond the financial support. It can help new entrepreneurs with the guidance and support they need to become successful industry leaders. Let us look into some of the benefits of business funding. 1. Set the business off ground The first and most pivotal use of funds is to get the business off ground. Funding can help an employee become an entrepreneur by giving them the necessary monetary support to at least run a hypothesis on the idea and convert it into a concept. 2. Get hiring support Funds can help businesses find the best team and make the hire. It can support the team’s salary till at least the business starts making profit or even reaching a breakeven point. Apart from the salary front, a company which gets tagged as being invested in, finds it a lot easier to hire quality people compared to the startups without any funding support. 18 3. Helps with the operational side of the business Another benefit of startup funding can be seen in the fact that it gives businesses the monetary support to rent out an office place, buy office equipment, invest in software, etc. In short, it can help with setting up the operational side of the business – at least for the initial few years, till the time the brand is able to sustain on its own. 4. Support marketing and promotional activities Marketing and promotion of a business is one of the key areas which a startup spends most on. The reason behind it is that they have to establish themselves in the market from scratch – a market where a number of seasoned players already exist. Funding on this front can play a massive role in supporting this expense for the business. 5. Guide entrepreneurs to become thought leaders One of the most overlooked benefits of startup funding is the fact that investors just don’t offer financial stability. They offer guidance as well. Having backed a number of businesses, investors come with a lot of experience needed to build a business. And since their monetary growth is dependent on the company’s growth scale, they ensure that they give you all the tools and learnings to be successful. 6. Help businesses move from local to global There is often always one thing between a businesses that runs its operation on a local ground vs one that is global – funds. The right investors can give brands the necessary monetary and advice-related support that plays a role in taking them forward on a global scale. 7. Give businesses a competitive edge Up until this point, you must have gathered how the benefits of funding are much bigger than monetary support. It can help businesses get a competitive edge in the market. The investors, when they back a company, back them through their guidance and business outlook as well – something that cannot be replicated by others in the industry. This combination of monetary and business insight gives businesses a competitive edge, helping them set their own business standards. 8. Growth funding Whether businesses wish to increase their sales number, expand the scope of their product or service, or grow on a local or global scale, growth funds can help them get there. A financial arrangement that comes with funding. 19  Irrespective of what the definition of growth for a company is, funding can help them get there. 9. Give businesses credibility in the market A business, the moment it gets funding, becomes credible. It goes unsaid that if an investor is backing a company they would have run their due diligence, meaning the brand already has everything that goes into the making of a future domain leader. Funding, whole and sole, leads to an upped credibility factor which results in businesses getting more customers, better loan rates, and hiring support. Now that we have looked into the multiple use of funding in a business, it is time to delve into the different types of startup funding. Lesson Activity 4 1. What is the importance of funding for start-up business? 2. Enumerate the 10 financing companies in the Philippines and cite at least two (2) which you think can provide a good financing program to your business. 20 Week 6 – the Entrepreneurial Mindset What is an entrepreneurial mindset? Entrepreneurial mindset: a way of thinking that enables you to overcome challenges, be decisive, and accept responsibility for your outcomes. It is a constant need to improve your skills, learn from your mistakes, and take continuous action on your ideas. Anyone willing to do the work can develop an entrepreneurial mindset. How to develop an entrepreneurial mindset Anyone can learn how to act like an entrepreneur, build the habits, and learn some business hacks to fearlessly create a business or start a side hustle. You can work towards starting a business and earning passive income without quitting your job, without knowing how to code, and without a million-dollar idea. Having a proven online business model helps, too The biggest killer of the entrepreneurial mindset is not what you would expect. It’s not failure, the economy, or bad ideas. It’s doubt – in ourselves, our surroundings, and our abilities. Self-doubt kills many dreams, long before any external factors can come into play. Learn to master your inner game Most people are afraid to start pursuing their dreams. Or if they do start, they turn back at the first signs of struggle, convinced they don’t have what it takes. This is why your thinking is so important to get right in the beginning. Being an entrepreneur starts with that feeling inside you – that entrepreneurial spirit you need to nourish and hone. Whether you are an employee looking to level up your career, a 9-to-5 worker exploring how to become a freelancer, or become a founder and CEO of your own company– when you master the entrepreneur mindset, you will begin to accomplish more goals than you ever imagined. 21 Week 7 - The importance of a Business Strategy It forms the foundation of all that we, as business owners, build our enterprises upon. Strategy help us define our business, gives it a set of values, and gives it purpose. It helps us understand what success actually looks like. It provides a roadmap for our business, shows us our destination and identifies useful stopping points along the way. The main purpose of a business strategy is to help businesses maximize returns and find ways to map progress. By doing so, organizations can make necessary adjustments for greater profitability in the future. There are various components of a business strategy, including a primary objective (which connects to the overall mission), core values (which hold employees accountable to organizational standards) and SWOT analysis (which helps organizations gauge their strengths, weaknesses, opportunities and threats). Here are some advantages that highlight the necessity and importance of business strategy: 1. Creates a Vision The main purpose of a business strategy lies in creating a vision for an organization that provides direction and guidance. All members need to have a clear picture of organizational goals and objectives to carry out their responsibilities. Business strategies help people stay focused on the big picture. 2. Identifies Important Trends Business strategies can identify opportunities and trends that can inform decisions for the future. They can help analyze changes in the market or consumer behavior so that businesses can develop tactics or modify them to generate positive outcomes. In short, trends are useful in informing future decisions. 3. Provides Competitive Advantage An organization can gain a competitive advantage by developing a sound business strategy. In other words, it can distinguish itself from competitors in the market. If the strategy pushes the business in the right direction, it can even outperform its competitors. Business strategies help organizations understand themselves better and where they are headed. 22 10 business strategy examples 1. Cross-sell more products Some organizations focus on selling additional products to the same customer. Cross-selling works well for office supply companies and banks, as well as online retailers. By increasing the amount of product sold per customer, you can increase the average cart size. Even a small increase in cart size can have a significant impact on profitability, without having to spend money to acquire more new customers. 2. Most innovative product or service Many companies, particularly in the technology or automotive space, are distinguishing themselves by creating the most cutting-edge products. In order to use this as your business strategy, you will need to define what "innovative" will mean for your organization or how you're innovative. 3. Grow sales from new products Some companies like to invest in research and development in order to constantly innovate, even with their most successful products. This type of strategy involves introducing new products into the market and updated products that are able to keep up with trends. 4. Improve customer service This can be a good business strategy if your business has had a problem delivering quality customer service. Some companies have even built a strong reputation for having exceptional customer service. Usually, companies have a problem in one specific area, so a business strategy that's focused on improving customer service will usually have objectives that center on things like online support or a more effective call center. 5. Cornering a young market Some large companies are buying out or merging competitors to corner a young market. This is a common strategy used by Fortune 500 companies to gain an advantage in a new or rapidly growing market. Acquiring a new company allows a larger company to compete in a market where it didn't previously have a strong presence while retaining the users of the product or service. 6. Product differentiation Product differentiation is a common business strategy, especially for business-to- consumer (B2C) businesses. They can differentiate their products by highlighting the fact that they have superior technology, features, pricing or styling. 23  7. Pricing strategies When it comes to pricing, businesses can either keep their prices low to attract more customers or give their products aspirational value by pricing them beyond what most ordinary customers could afford. If companies plan to keep their prices low, they will need to sell a much higher volume of products, as the profit margins are usually very low. For companies who choose to price their products beyond the reach of ordinary customers, they are able to maintain the exclusivity of their product while retaining a large profit margin per product. 8. Technological advantage Obtaining a technological advantage, you can often achieve better sales, improved productivity or even market domination. This can mean investing in research and development, acquiring a smaller company to gain access to their technology or even acquiring employees with unique skills that will give the company a technological advantage. 9. Improve customer retention It's generally far easier to retain a customer than spend money to attract a new one, which is why this is a great strategy if you see opportunities for improvement in customer retention. This strategy requires you to identify key tactics and projects to retain your customers. 10. Sustainability You could launch an entire business strategy aimed at increasing the sustainability of your business. For example, the objective could be to reduce energy costs or decrease the company's footprint by implementing a recycling program Lesson Activity 5 1. What is the importance of business strategies in the business? 2. Enumerate the 10 business strategies that you can adopt in your business 24 Week 8 - Resilient Attitude in the Business In the midst of the Covid-19 crisis, we have become painfully aware of the fragility of supply chains, health care, and other critical systems. Many leaders have announced the intention to build back their businesses more resiliently, but not many know how to do so. Few business schools teach resilience, and today’s managerial toolkit is dominated by financial performance management. As a result, very few companies are able to explicitly design for, measure, and manage resilience. Why Resilience Is Important We can usefully define resilience as a company’s capacity to absorb stress, recover critical functionality, and thrive in altered circumstances. Resilience is especially important today because the business environment is becoming more dynamic and unpredictable. This is a result of several enduring forces stressing and stretching business systems — from accelerated technological evolution to a greater interconnectedness of the global economy to broader issues such as rising inequality, species depletion, and climate change. There is no better example of system stress than the coronavirus crisis. Humans impinging on the natural environment have enhanced the risk of cross-species infections. Dense urban populations facilitated the rapid initial outbreak of the disease. International travel facilitated its global spread. Extended global supply chains have broken down. Economic activity has been massively disrupted, and inequalities and social tensions have been exacerbated. And Covid-19 is not a one-off. SARS, MERS, and Ebola forewarned an inevitable global pandemic, and there is every reason to expect that we will see others in the future. Furthermore, the same circumstances are also conducive to the spread of a cyber-virus and to economic instability that could result from climate change or social tensions. The Challenge of Measuring and Managing Resilience Traditional management approaches have several important limitations that make measuring and achieving resilience difficult: Companies have been designed predominantly to maximize shareholder value from dividends and stock appreciation. Very few companies even attempt to measure resilience beyond merely disclosing specific material risks. 25  Companies and shareholders often focus on maximizing short-term returns. In contrast, resilience requires a multi-timescale perspective: forgoing a certain amount of efficiency or performance today for the sake of more-sustained performance in the future. Companies have been mainly focused on creating and executing stable plans, which works well when causal relationships are clear, predictable, and unchanging. Resilience deals with what is unknown, changeable, unpredictable, and improbable — and has significant consequences. In the current model of corporate capitalism, each company is treated as an economic island to be optimized individually. While this simplifies management and accountability, it masks the extent of economic and social interdependence between different stakeholders. In contrast, resilience is a property of systems: an individual company’s resilience means little if its supply base, customer base, or the social systems upon which it depends are disrupted. Building Resilient Enterprises Companies can structure their organizations and decision processes for resilience by embracing six principles of long-lasting systems: 1. Redundancy buffers systems against unexpected shocks, albeit at the expense of short-term efficiency. It can be created by duplicating elements (such as by having multiple factories that produce the same product) or by having different elements that achieve the same end (functional redundancy). 2. Diversity of responses to a new stress helps ensure that systems do not fail catastrophically, albeit at the expense of the efficiencies obtainable through standardization. In business, this requires not only employing people from different backgrounds and with different cognitive profiles but also creating an environment that fosters multiple ways of thinking and doing things. 3. Modularity allows individual elements to fail without the whole system collapsing, albeit while forgoing the efficiency of a tightly integrated organizational design. Because a modular organization can be divided into smaller chunks with well- defined interfaces, it is also more understandable and can be rewired more rapidly during a crisis. 4. Adaptability is the ability to evolve through trial and error. It requires a certain level of variance or diversity, obtained through natural or planned experimentation, in combination with an iterative selection mechanism to scale up the ideas that work best. Processes and structures in adaptive organizations are designed for flexibility and learning rather than stability and minimal variance. 5. Prudence involves operating on the precautionary principle that if something could plausibly happen, it eventually will. This calls for developing contingency plans and 26  stress tests for plausible risks with significant consequences — which can be envisioned and prepared for through scenario planning, war games, monitoring early warning signals, analyzing system vulnerabilities, and other techniques. 6. Embeddedness is the alignment of a company’s goals and activities with those of broader systems. It is critical to long-term success because companies are embedded in supply chains, business ecosystems, economies, societies, and natural ecosystems. Articulating a purpose — the way in which a corporation aims to serve important societal needs — is a good way to ensure that the company does not find itself in opposition to society and inviting resistance, restriction, and sanction. How to Become a More Resilient Company Crises are opportunities for change. With Covid-19, companies have a unique opportunity and necessity to revisit their business models to build greater systemic resilience, starting with the following six actions. Seek advantage in adversity. Don’t merely endeavor to mitigate risk or damage or restore what was; rather, aim to create advantage in adversity by effectively adjusting to new realities. Look forward. In the short run, a crisis many appear tactical and operational, but on longer timescales, new needs and the incapacitation of competitors create opportunities. Crises can also be the best pretext for accelerating long-term transformational change. One of the key roles for leaders is therefore to shift an organization’s time horizons outward. Take a collaborative, systems view. In stable times, business can be thought of as performance maximization with a given business model in a given context. Resilience, by contrast, concerns how the relationships between a business’s components or between a business and its context change under stress. It requires systems thinking and systemic solutions, which in turn depend on collaboration among employees, customers, and other stakeholders. Measure beyond performance. The health of a business is not captured only by measures of value extracted, which tend to be backward-looking. Measuring flexibility, adaptation, and other components of resilience is critical to building a sustainable business. This can be done quite simply by looking at either benefits or capabilities. Prize diversity. Resilience depends on being able to generate alternative ways of reacting to situations, which in turn depends on the ability to see things with fresh eyes. Resilient businesses prize cognitive diversity and appreciate the value of variation and divergence. 27  Change as the default. Alibaba founder Jack Ma sees change, not stability, as the default. Resilience is less about occasional adjustments under extreme circumstances and more about building organizations and supporting systems predicated on constant change and experimentation. This is partly to avoid rigidity and partly because iterative incremental adjustment is far less risky than a massive one-shot adjustment Lesson Activity 6 1. Why it’s important to have a resilient attitude in the business? 2. What are ways to have a resilient mindset in the business? 3. How should a company be resilient in the business? 28 Week 9 – Midterm Examinations Week 10 – Entrepreneurs and the Businessman The main difference between entrepreneur and businessman is that a businessman is a person who sets up his business as a new entrant to the market in an existing market on commercial or industrial grounds. Whereas, an entrepreneur comes up with a unique idea or a concept to start an enterprise and makes it into reality. Many people use the terminologies, businessman and entrepreneur, interchangeably. They use these two terms to refer to anyone who owns a business and makes money. However, there are distinct differences between an entrepreneur and a businessman. Most businessmen go for businesses with a high demand, which ensures huge profits, disregarding the uniqueness of business ideas. In contrast, entrepreneurs establish startup companies adopting innovation, new ideas, or business processes. They are always willing to take risks and meet uncertainties of the business. Who is a Businessman? A businessman is an individual who sets up his business as a new entrant to the market. He basically disregards the uniqueness of the business ideas and instead prioritizes producing the products or services with higher demand. Therefore, a businessman has to face tough competition. This is because there are hundreds of competitors already existing in the market, conducting the same business. However, the risk factor to collapse is low as he is following a path that is already taken by others. Above all, the main goal of a businessman is to employ his human, intellectual and financial resources available in such a way that it would ensure the maximum production possible and the flow of high profits toward him. Who is an Entrepreneur? An entrepreneur is an innovator of novel ideas, goods, services, and business and who bears lots of risks in creating a new business. They use their skills and take the necessary initiative to recognize the needs of the customers and to introduce new ideas to the market. Therefore, entrepreneurs are significant to any economy. Entrepreneurs that prove to be successful in taking on the risks of creating startups are rewarded with profits, fame, and continuous growth opportunities. Moreover, entrepreneurship that fails results in losses and has less possibility of survival in the 29 markets. However, entrepreneurs are known for their creative approach in contrast to the profit-based approach of businessmen. Similarities between Entrepreneur and Businessman Businessmen and entrepreneurs act as decision-makers. Moreover, both have managing abilities and can perceive and project forward. They possess great time management, organizational, and monitoring skills. In addition, they have good listening and communication skills. Difference between Entrepreneur and Businessman By Definition An entrepreneur is a person who uses his unique idea to run a startup company, while a businessman is a person who starts a business on an existing concept or idea. Market A businessman makes his place in the market with his efforts and dedication and is considered a market player, whereas an entrepreneur creates the market for his own business and is considered a market leader. Nature A businessman is naturally calculative, while the nature of an entrepreneur is intuitive. Risk Factor Since a businessman follows the paths created by other businessmen, the possibility of failure is very less. This is the opposite in the case of an entrepreneur. He or she faces a lot of risks. Methods The methods used by an entrepreneur to run his business are quite unconventional methods than those employed by a businessman. Approach A businessman has a profit-oriented approach; however, an entrepreneur gives more importance to its employees, customers, and the public. Competition Compared to an entrepreneur, a businessman faces extreme competition as he happens to compete in an already existing market. 30 Lesson Activity 7 1. In your opinion, what is a businessman? 2. What is an entrepreneur? 3. Differentiate a businessman from an entrepreneurs? 31 Week 11 – Emotional Intelligence In Business And Leadership In recent decades, the definition of leadership has been changing, and an emphasis on emotional intelligence has emerged. Emotional intelligence, or EQ, has become recognized for its correlation to success in work and personal life, to motivation and to overall well-being. In business, high-EQ people have become desirable to employers due to the various advantages they enjoy. Some of the most successful and influential people in history have had high emotional intelligence, such as Martin Luther King, Jr., Abraham Lincoln, Winston Churchill and Warren Buffett. What is Emotional Intelligence? Emotional intelligence is a person’s ability to recognize, understand and manage their feelings and emotions, as well as those of others. According to psychologist Daniel Goleman, emotional intelligence has the following five components 1. Self-Awareness: Recognizing and understanding your own strengths and weaknesses, your emotions and moods, and the effects these things have on other people. A self-aware person is not easily offended by criticism, but rather learns and adapts. 2. Self-Regulation: To think before doing and to express your feelings maturely with restraint. Rather than being controlled by emotions and impulses, an emotionally intelligent person can control impulses and emotional responses. 3. Internal Motivation: High EQ people are self-motivated, pursuing personal goals for reasons of self-development and self-gratification, rather than money, titles, external praise or esteem. This could mean getting into humanitarian work because of a true passion, rather than seeking out the highest paying job. 4. Empathy: Empathy involves recognizing, understanding and feeling the emotions of others. Unlike sympathy, empathy involves actually sharing the emotional experience another person is having. When a friend loses a family member, sympathy is flowers and a hug — empathy is shedding tears alongside that friend and not by choice, but due to actually feeling their emotions. Empathetic people genuinely understand and respond to the needs of others. 32  Robert F. Kennedy is one example of a highly empathetic leader, whom, upon being exposed to the suffering of African Americans, was so moved that he shifted his political priorities to address their needs. 5. People Skills - Emotionally intelligent people easily build trust and respect with others. They are good at managing relationships and building networks, and they avoid power struggles and deceitfulness. Their high levels of the first four components of EQ make for deep bonds and genuine, non-competitive friendships 33 Week 12 - Why is Emotional intelligence Important in Business? In a study that involved over 2,600 hiring managers, 71% said they value high EQ over high IQ. When asked why, they cited the following reasons: o High EQ employees are better at staying calm under pressure. o They listen as often as or more often than they speak. o They lead by example. o They make more thoughtful business decisions. o They take criticism well and admit their mistakes and learn from them. o They keep their emotions in check and can discuss tough, sensitive issues thoughtfully and maturely. o They are able to effectively resolve conflict. o They are empathetic to coworkers and react accordingly. How to Increase Your Emotional Intelligence Luckily for humanity, there are ways to increase emotional intelligence through practice. Here are some of them! o Pause before speaking, acting or responding. This allows for initial impulses to fade, and for undistorted reflection and reasoning to occur. o Listen to others. Listening allows us to better understand the needs and emotions of others. Listening takes the focus off one’s own needs and shifts it to those of everyone, enabling better solutions that benefit more people. o Attempt to control your thoughts. We cannot control what happens to us, or the emotions we feel in a moment, but we can control how we respond to them if we practice directing our thoughts. Rather than blaming oneself or another person when something negative occurs, consider alternative explanations. Maybe the circumstances leading to such an event resulted from many combined factors, the product of which was beyond any one person’s control. o Praise others. Praising others on a habitual basis trains your brain to focus on the good in others, which encourages empathy and allows for a deeper understanding of people’s needs and motivations. Praise also sets the stage for thoughtful discussions 34  on tough issues, as it decreases defensiveness and encourages openness to opposing thoughts. o Reflect on criticism and search for ways to grow from it. Criticism can sometimes be hurtful, but it can always be helpful, as it exposes us to true outside perspectives. In the face of criticism, ask yourself: How can I improve and grow from this? o Pay attention to body language. Much of communication is non-verbal. If you only listen with your ears, you could be missing out on how a person really feels, and even efforts to help them will thus be misinformed. o Apologize. Intentions get misunderstood and feelings get hurt regularly. Apologizing shows compassion and encourages us to better understand one another while building trust and respect. o Try to see from another person’s point of view. When in disagreement, consider the needs, motivations and emotions that may be shaping another’s priorities and opinions. Ask the reasons behind their thoughts and try to genuinely understand them. Maybe then, common ground will be found. o Communicate your feelings. When you are offended or upset, communicate to the offending party in a calm, non-threatening way so everyone can gain a mutual understanding and avoid future problems. Lesson Activity 8 1. Why it’s important to have a sound emotional quotient when venturing in a business? 2. What are ways to improve the emotional quotient of entrepreneurs in the business? 35 Week 13 – Entrepreneurial Mind frame Entrepreneurs make up only about 15% of the working population in the US. Far fewer actually succeed than those who attempt to become self-employed business people and venture out on their own. So what makes people decide to take the entrepreneurial path, when so few actually make it a reality? Is the American dream a possibility for anyone, or, does it take more than most to become a successful entrepreneur? The success of an entrepreneur does depend on their mindset. A large percentage of business owners will quit in their first five years in business. What is needed is the fortitude and belief that goes with attaining success. Entrepreneurs are risk takers and dreamers. The difference between the dreamer and the entrepreneur though, is that the entrepreneur takes actions based on their dreams. They persist through the hardships and never give up! Many entrepreneurs start with an idea. Their success is determined by their belief that they can create something greater than simple monetary success. Often, it is about creating something which will benefit the world. James Dyson, for example, came up with the idea of the bag less vacuum cleaner. Despite multiple setbacks, over 5000 prototypes and not being able to get any manufacturers or distributors to accept his idea, he persevered. It was over a decade after his initial idea when his concept came to fruition. Even then, it was after a lot of difficulties and hardship due to the vacuum replacement bag industry, which was worth £100 million in the UK. In Simon Sinek's book 'Start with Why', he suggests that the biggest companies in the world are so because of their "why?" - Their reasons for building a business in the first place. In all cases, it wasn't just to make money, or make technology better, or some whimsical ideology. The Wright Brothers, for example, became known as the pioneers of the first manned flight. But their competition was much better funded and well connected - Samuel Pierpont Langley had worked at Harvard, had a number of powerful connections, including Andrew Carnegie and Alexander Graham Bell. The War Department funded his project with a $50k grant, a seemingly massive advantage to the unconnected Wright Brothers who had no money or influence. However, their passion and devotion to change the world with this new technology drove them to attain the first flight in history in 1903. Desire for material things and monetary wealth can only carry someone so far. Unless you have a goal or passion which is bigger than that, you may lose the momentum and fail to maintain your enthusiasm for any length of time. 36 The entrepreneurial mindset is one which taps into your purpose. Without a purpose driven goal or aim, it can't take long before disillusionment kicks in. With a mindset which takes into account a larger purpose, entrepreneurs can build huge businesses because they 'saw' a vision of what they wanted to create. If the purpose is greater than the obstacles which lie in the path of attaining it, no amount of setbacks will stop you from achieving your goal. On the other hand, if you set out to do something and something gets in the way and stops you, your initial reason, (your "why?"), may not have been strong enough to endure all the battles along the way. Entrepreneurial mind frame (or mindset) therefore, must be aligned with both your vision, your values and your purpose. If your values are not in alignment with your purpose and vision, you'll come up against road blocks which will stop you from achieving your goal. 37 Week 14 - Anatomy of an Entrepreneur Based on statistics, average entrepreneurs are males in their late 30s who work in the construction industry. However, by now, it is easy to see how such figures can be quite misleading. This is basically because, as you have learned earlier, successful business owners and entrepreneurs can come in virtually all sizes and shapes. They can be as young as 9 or as old as 109. They can be male, female, poor, rich, people who left school at the early age of 13, people with several doctorates, and they can come from all ethnic backgrounds, religions, countries you can ever think of. There is a large diversity in entrepreneurship. But despite the differences, they have a single thing in common and that is the serious drive to make things happen as they want them to. So, what are the personality traits and characteristics which make entrepreneurs who they really are? If the traits below sound exactly just like you, chances are you have the perfect anatomy of an entrepreneur and can make a great entrepreneur yourself! Confidence More than anything else, you have to be confident to get through even the toughest of times. And mind you, there are definitely going to be hard times along the way if you will work for 14 hours a day. Sometimes, it might seem that you lost all of your life savings and you still don’t get any customers at all. You must have deep emotional reserves as well as a solid inner confidence in yourself as well as your business idea for you to get through all these tough times (Because tough times there are in every entrepreneur journey). This confidence will also let you approach the right people you need, from suppliers, to commercial partners, target customers and lucrative clients. It is your confidence that will give them the assurance that you know exactly what you are doing and encourage people to work with you. Your confidence is going to be an indispensable asset in any presentation or pitch you have to make. 38 If you have any doubts about your confidence, don’t worry as there are different ways for you to improve it. There are a lot of entrepreneur affirmations that can boost your confidence as well as website tutorials and self-help books out there meant to help you improve your self-esteem. Determination Starting and running your own business can be an incredibly challenging work and this is often associated with constant setbacks, complications and frustrations. You should be determined to successfully pull yourself through all these hurdles. You have to be completely prepared to put in amazingly long hours every single day of the week, months and even years. This determination is something that will keep you looking for the best deals and contacts for your business. This is also vital to forge commercial partnerships with people that you want to. This perseverance is going to prove so much about you and encourage the rest of the people to put their trust in your ability. Determination is in the anatomy of every single successful entrepreneur. A strong determination is what will help you plow on searching for the right marketing technique, sales strategy and business model that will take your business to greater heights since these things often take years to perfect and refine. If you don’t have determination in bringing your business to success, you will seriously have to ask yourself if it is really right for you to start a business in the first place. Passion As an entrepreneur, you will have ups and downs, no matter what. You will need to stay motivated during the down times if you want to be an unstoppable entrepreneur. When you talk about being passionate in your business, it doesn’t mean that you will be an emotional romantic and fiery hot-headed person. it only means that you must have a strong belief in the business that you are building, that the core idea behind it genuinely excites you and that every time you discuss what you are doing to other people, it is obvious how much you are into the new business and you are determined to make everything work. 39 The passion for your business idea combined with the ability to communicate it is what will get investors, staff, customers, commercial partners and banks more interested in your idea. This can be an amazingly convincing entrepreneur anatomy trait which can help you close deals and bring in more customers. Your passion is also the one thing which will motivate your suppliers and staff when times get tough, especially since you have to inspire them to continue doing their best to make everything happen. Action-oriented Even the brightest ideas are going to be worthless and futile until you actually do something about them. You must be a serious go-getter to make all aspects of your business take place. A true entrepreneur is a kind of person who will just get on with things instead of spending time sitting around and just talking about them. However, you need to be able to carefully structure your action. Choosing to leap in just for the sake of it can be quite foolish. You have to come up with clear and definite paths of action for making your business idea a reality. People’s person As far as businesses are concerned, everything is about relationships. In order for you to be successful, it would help a lot if you are the type of person who can establish rapport with ease and is not afraid to start a conversation. Being a people’s person is really a personality trait, which is part of the anatomy of an entrepreneur. Empathy will help your business! How to train this? You could start with philanthropy and see how it helps with business and empathy. Also, you need to form a relationship with your customers and encourage them to choose to do business with you for the reason that they like you. If people like you, this will also increase their loyalty to your business which is an important tool which can help in puling you through even the darkest of times or if a new competitor starts up around the corner. Ability to see the bigger picture 40 You will always face setbacks every now and then when you run your own business. You must be the type of person who has the ability to see the bigger picture so that the challenges will not bring you down. In addition, you need to view strategy, growth and finances from a more holistic point of view for you to plan weeks, months or even years in the future But, don’t get lost into dreams or unrealistic visions, though. Having a vision is an invaluable trait for your business planning and budgeting and for the general survival of the business. Not afraid to fail When starting a business, as an entrepreneur you must assume that failing is part of the journey. When you worry about failure, you will never be able to start your business. More than anything else, you must have the willingness to fail if you truly want to be successful. Getting rid of your fear of failure will give your confidence and risk taking ability to a massive boost. After all, when you don’t fear the worst option, you can always give it a go. You must strive to eliminate fear not only of your business being a failure but also of a crucial contact who chose to turn you down or a client who decided not to do businesses anymore with you. When you always worry about these things, you will end up stressed out a lot which can then rob you of your confidence. More importantly, don’t forget that you get to learn best from the mistakes you make in your business. Instead of fearing them, you will be much better off if you choose to embrace them. Risk taker The best and most successful entrepreneurs are the biggest risk takers you will ever meet. Take note that with no risk, there will be no reward. It means that you have to grab an opportunity every time you see one and forget about your fear of failure. Risk-taking is totally part of the anatomy of an entrepreneur but with this being said, entrepreneurs are people who take calculated risks. Their actions might seem flippant but 41 you can be sure that they are going to do the Math inside their head to always ensure that they will be getting the highest chances of success when they take that risk. Just a tiny bit of faction of business owners today manage to turn into full-blown entrepreneurs, the kind who can run chains of businesses in every corner of the globe. You can always have them as your inspiration to keep pushing yourself and also pushing your ideas always a bit further. Financial thinker Successful entrepreneurs always think of the bottom line and profits. When you are not focused on making more money or probably just breaking even, you will not be able to have your business for a long time and simply suffer from a cash drain instead. While the ability to calculate the figures quickly can be of help, this is not really something imperative. What is important is for you to always take work out the profit margin and costs on the things that you sell and buy and deduct or add these from your budget. It is far more important to think through your financial decisions with care instead of doing things quickly. Being able to manage your budget is key. Opportunity getter This is a trait that is not often talked about but being an opportunity getter is the real secret to being able to determine new customers, market gaps, new product possibilities, and once you become a full-fledged entrepreneur, new opportunities for business. Spotting opportunities usually go hand in hand with optimism together and with the capacity of taking calculated risks. This can help you a lot in finding more inventive ideas for sales, marketing, partnership and public relations. If you feel like this aspect requires work, just take a look at how the bigger companies spot new opportunities as well as how they capitalize on the trends and target their efforts on advertising. You can also read books on how businesses were able to develop creative and new ways. 42 You will soon find out that when you are an opportunity spotter and getter, you will always come up with great ideas and you will often see how the business and products can become more popular and efficient. Being able to discover, catch and get opportunities is really an important characteristic of the anatomy of an entrepreneur Lesson Activity 9 What traits should be improved and possessed by an entrepreneur? Explain 43 Week 15 – Opportunity Seeking in the Business The Many Sources of Opportunities There are many ways to uncover or discover opportunities. Some have to do with looking at the big picture and noticing emerging trends and patterns. Others have to do with finding out what specific customer segments are being targeted in the marketplace. Still, others come from new technologies and new knowledge. These different sources of opportunity are discussed in this lesson. Macro Environmental Sources of Opportunities The macro-environment refers to the “big or macro forces” that affect the area, the industry, and the market, which the enterprise belongs to. They influence how business should be conducted, how consumers will behave, how supply and demand will move, how different competitors would position themselves, and how the cost of doing business will proceed. The macro-environment forces can be divided into five categories composed of the Social, Political, Economic, Ecological, and Technological dimensions or SPEET. The macro-environment forces create their own opportunities for the enterprise to exploit, and their own threats for the enterprise to counteract. 1. Socio-Cultural Environment The socio-cultural environment includes the demographics and cultural dimensions that govern the relevant entrepreneurial endeavor. Taking this aspect into consideration helps the entrepreneur assess the trends and dynamics of the bigger consumer population, their beliefs, tastes, customs, and traditions. It looks at social structure and shifts in social status and behavior. 2. Political Environment The political environment defines the governance system of the country or the local area of business. It includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business. Specifically, it regulates the use of natural resources; the disposal of wastes; the taxation of income; the importation of goods and services; the accounting and reporting of business financial statements; public and private education; health programs; use of 44 public funds; and other such concerns. It includes the establishment of vital infrastructures, logistical access, and interventions that affect the cost of doing business. These factors are important influencers in evaluating the attractiveness of any political domain where the entrepreneur intends to locate and do business in. 3. Economic Environment Supply and demand forces mainly drive the macroeconomic environment. They are the same factors that drive the interest and foreign exchange rates that fluctuate with the movement of the market forces. In any country, the income levels and the purchasing power of its people as well as the competitiveness (or non-competitiveness) of its industries and enterprises are sources of opportunities. However, in any opportunity, there is always a threat that lurks behind it. In this case, the entrepreneur must be able to think critically through each and every single economic event that impacts his or her enterprise. 4. Ecological Environment The ecological environment includes all-natural resources and the ecosystem, habitat of men, animals, plants, and minerals. There is a growing awareness in the world today that will make this factor more and more important for countries, industries, and businesses. The threats of ecological degradation have generated countless opportunities such as smoke and spill detectors, filters and screens, pollution counters, and energy-saving devices. Opportunities abound for greener, cleaner, and healthier products, whose objectives are to save the planet and prolong lives. 5. Technological Environment New scientific and technological discoveries, which often lead to the launch and commercialization of new products with superior attributes or to rendering the old ones obsolete, are the entrepreneur’s nightmares. In such cases, the entrepreneur is left with no choice but to invest in new technologies in order to keep up with competition. Technology does not only come in the form of advanced machinery or equipment, but it can also be in the form of new systems, new processes, or new products. 45 Industry Sources of Opportunities After the macro environment, the next biggest sources of opportunities are the industry and the market. One of the most difficult aspects about industry analysis is defining what constitutes an industry in the first place. The proper classification of what industry the enterprise is competing in is important if the entrepreneur’s intention is to define who are the relevant customers, who are the direct and indirect competitors, and what are the critical characteristics of the market as to the quality of products or services to be delivered. Participants in an industry include: Rivals or competitors in a particular type of business (e.g., Jollibee vs. McDonald’s, Coca-Cola vs. Pepsi, Samsung Galaxy vs. Apple’s iPhone, etc.). True rivals or competitors are those competing for the same or similar markets. Suppliers of input (e.g., fuel, electricity, raw materials) to rivals as well as suppliers of machinery and equipment, suppliers of manpower and expertise, and supplies of merchandise. Consumer market segments being served by rivals or competitors. Substitute products or services, which customers shift or turn to. All other support and enabling industries. 46 Week 16 – Business Networking What Is Business Networking? Business networking is a term that refers to meeting other business owners, potential suppliers, or other professionals who have business experiences—to help you grow your business. Networking gives you a pool of experts that range from competitors to clients, and allows you to offer something to them; hopefully in exchange for their services, advice, knowledge, or contacts. Developing relationships as a business owner and offering assistance to others does more than give you potential clients or generate referrals. Networking assists you in identifying opportunities for partnerships, joint ventures, or new areas of expansion for your business. How Does Business Networking Work? Networking events or local business luncheons present you with opportunities to find others who are in similar circumstances as you work to grow your business. These events are generally put together for the purpose of introducing new concepts and methods being used while providing a platform for local business people to meet and exchange ideas. When you meet someone, be sure to exchange business cards, and follow up later discussing points or topics brought up in conversations you may have had with them. After a few conversations, you may be able to bring up the issues you are facing. If they open up discussions first, you might be able to begin exchanging information, seeking knowledge, or exchanging business contacts. Most business people are optimistic and positive. Regular association with such people can be a great morale boost, particularly in the difficult early phases of a new business. You'll find that many, if not all, business owners have experienced similar trials of ownership. What Are the Benefits of Business Networking? 47 Business networking might allow you to create awareness of or keep abreast of the latest trends or technology in your industry. A network can also provide you with professional mentors or contacts who might be able to assist you with problems you might need help with. For example, if your business needs the services of a bookkeeper, accountant, or lawyer you may find the ideal candidate through your network. If your business needs equity financing you may be able to find an angel investor or venture capitalist through networking channels. Types of Business Networking As you attend events, look for indicators that someone might be in a position to benefit your business, where you have something to offer as well. This could simply be conversations about your industry's market conditions as well as the trends each of you may have noticed within your industry. You can work together to develop an understanding of the market you both operate in. Business Seminars Look for and attend some business seminars—cultivate new working relationships with your new peers and business associates, then communicate on a regular basis to help you all stay current Networking Groups The best business networking groups operate as exchanges of business information, ideas, and support. There are many groups online that offer networking services and communities—LinkedIn is an example of a large networking group or site that can bring professionals together. Professional Associations Organizations exist that are comprised of like-minded individuals in similar industries and fields of work. These organizations may have entry fees or other selection requirements, but they can prove vital for small business owners looking to expand their network. The American Management Association and the American Marketing Association are two examples of industry-specific associations. Lesson Activity 10 48 1. What is the importance of opportunity seeking in the business 2. Explain the importance of networking in the business 3. Enumerate possible sources of network for a start-up business 49 Week 17 – Business Plan Preparation Whether you are starting a pizza shop or a plumbing business, a flower shop or a factory, you need a solid plan. In fact, your Business Plan will be an essential tool throughout the life of your business – from starting out to cashing in. It will help you to start out on the right foot, stay focused, get financing, manage your growth, and more. Not every Business Plan will be the exactly same, but every Plan should incorporate several key elements. Here are the key pieces to a solid Business Plan. A. Title page The title, or heading, of the plan, and very brief description of the business. The date The name of the owner The company name and location A copyright or confidentiality notice B. Table of Contents A list of the individual sections and their page numbers, starting with the Title Page and ending with a section for Special Materials (references, etc.). C. Summary/Overview A brief, but focused statement (a few sentences or paragraphs) stating why the business will be successful. This is the most important piece of a Business Plan because it brings everything together. D. Market Analysis Identifies specific knowledge about the business and its industry, and the market (or customers) it serves. An analysis that identifies and assesses the competition. 50 E. Description of the Company A close look at how the different components of the business fit together, such as: Information about the nature of the business and the factors that should make it successful. Special business skills and talents that provide the business with a competitive advantage, such as a unique ability to satisfy specific customer needs, special methods of delivering a product or service, and so on. F. Organization & Management The company’s organizational and legal structure, Is it a sole proprietorship? A partnership? A corporation? (See: “Ownership Structures“) Profiles of the ownership and management team: What is their background, experience and responsibilities? G. Marketing & Sales The company’s process of identifying and creating a customer base. (See: “Market Research“) H. Description of Product or Service A detailed description of the product or service – from the customer’s point of view: How they will benefit from the product or service? Specific needs or problems that the business can satisfy or solve, focusing especially on areas where the business has the strongest skills or advantages. I. Funding The amount of current and future funding needed to start or expand the business. Includes the time period that each amount will cover, the type of funding for each (i.e., equity, debt), and the proposed or requested repayment terms. How the funds will be used: For equipment and materials? Everyday working capital? Paying off debt? J. Financials Explains or projects how the company is expected to perform financially over the next several years. (Sometimes called a “pro-forma projection.”) Because investors and lenders look closely at this projection as a measure of your company’s growth potential, professional input is strongly recommended. 51 K. Appendix Provides specific information that certain individuals (such as creditors) may want review. It allows the addition and/or deletion of information as needed, such as: Credit histories (personal & business) Resumes of key personnel and partners Letters of reference Details of market studies Copies of licenses, permits, patents, leases, contracts, etc. A list of business consultants, attorneys, accountants, etc. These are just the basic essentials to creating a Business Plan. Each plan should be tailored to the specific business 52 Case study 1: RENAULT & NISSAN Renault and Nissan have a strong partnership in automobiles. Their partnership made a remarkable achievement of making up 10% of new car sales worldwide. Renault and Nissan chose to make an alliance rather than a merger because an alliance has many stronger benefits than a merger would give. With an alliance, they can access more geographical areas where foreign investments are restricted. These companies got better chances to enter each other’s territory where they were already established companies because of the alliance. Although they faced numerous challenges including fluctuation in price share, they managed to resolve issues and succeed. Case study 2: Apple Apple logo is a well-recognized design that reflects the brand value. Over the years, the Apple logo has gone through several design changes. The most important rebranding of the company came when Steve Jobs changed the logo which impacted the overall personality of the company. Now, this logo is the most recognized logo in the world. Looking at the Apple logo, customers can feel a sense of trust, reliability, and innovation. It is the main reason for the huge sales of all the Apple products across the globe. 53 Case study 3: Starbucks Starbucks introduced a Reward Loyalty Program in which customers collect stars to get exciting rewards. This program drives 40% of Starbucks total sales. By adapting the gamification method, Starbucks added a reward loyalty program to their already established app. This move drastically increased sales and digital traffic. They brought mobile payment, customer loyalty, and content partnership in one powerful app. Customers started registering for My Reward via their app. They are given stars (points) in exchange for their interaction in the app or purchase made. The higher the number of stars a customer gets, the better rewards they get. 54 References Evolving with Inclusive Business in Emerging Markets: Managing the new Bottom line, Rajagopal, 2022, BEPB0001245 Building Business Capacity, Hardin Sheryl, 2022, BEPB0001225 The entrepreneurial Adventure, James Oliver, 2022, BEPB0001222 The Startup Masterplan: How to Build a Successful Business from Scratch, Agarwal Nhikil, 2022, BEPB0001191 Business with purpose advancing social enterprise, Stephens Melodena, 2020, HD 60. S74 2020 https://www.socialpilot.co/blog/case-study-examples shorturl.at/fkrHV shorturl.at/npDHJ shorturl.at/klsY5 shorturl.at/owANU shorturl.at/ftDTZ shorturl.at/doqW2 shorturl.at/ctCZ1 shorturl.at/bfiks shorturl.at/yHI23 shorturl.at/fBPU1 shorturl.at/DKR05 shorturl.at/mx679 shorturl.at/xAEL8 shorturl.at/iNT12 shorturl.at/cvEHR shorturl.at/efiT7 shorturl.at/hHLR5 55