Lesson 3

• Business Plan - a written document describing the nature of : Business, sales, and marketing strategy. Financial background ,  Containing a projected profit and loss statement.
• Business Plan - Some people think you don’t need a this unless you're trying to borrow money
• Business plan - is more than a pitch for financing; it's a guide to help you define and meet your business goals.
• Business Concept - is an idea for a business that includes basic information such as, service or product, target demographic, and unique selling proposition
• unique selling proposition - gives a company an advantage over competitors, it is a marketing concept that refers to any factor or aspect of an object or service that differentiates it from competition
• business concept - it may involve a new product or simply a novel approach to marketing or delivering an existing product. once a concept is developed it is incorporated into a business plan
• opportunity - to bring about the business concept, the entrepreneur should be able to recognize an (?) in terms of products or services
• business opportunity or product  opportunity - exist when there is a gap between what is currently on the market and the possibility for new or significantly improved products that result to emerging trends
• three product opportunity gap:

  • social
  • economic
  • technology
• social product opportunity gap - social and cultural trends and drivers reviving historical trends
• economic product opportunity gap - state of the economy shift and focus on where to spend money and the level of disposable income
• technology product opportunity gap - state of the art and emerging technology re-evaluating existing technology
• two sources for opportunity or innovative opportunity:

  1. internally focused
  2. externally focused
• internally focused -  an entrepreneur may be able to discover opportunity such as failures like overproduction of fresh tomatoes does the entrepreneur was able to preserve tomatoes through drying or boiling (the unexpected, unexpected success failure or outside events)
• internally focused - children doesn't choose vegetables over meat but now in reality, entrepreneurs are making ways that children will love veggie foods like shawarma veggie dumplings and the like.

  (the incongruity between reality as it actually is and reality as it is assumed to be or is ought to be)
• internally focused - in the pandemic times, medical face mask becomes scars to cope with the need, entrepreneurs provided reusable face mask for non-medical practitioners (innovation based on process needs)
• internally focused - the market competition becomes an opportunity like the popping up of convenience stores which grew like mushrooms around the city blocks (changes in the industry structure or market structure that catch everyone unaware)
• externally focused - like age, status, race, sex, is an entrepreneurial basis for opportunity for each factor needs to be considered in providing goods or services (demographics or population changes)
• externally focused - the uniqueness of every individual creates differentiation of the offered goods and services like the choice of perfume scents (changes and perception mood and meaning)
• externally focused - acquired information both from scientific or a non-scientific way can easily get into the ideas of an entrepreneur (new knowledge both scientific and non-scientific)
• two ways to recognize opportunity:

  discovering

  creating
• design thinking - is a human centered approach to innovation that draws from the designers toolkit to integrate:

  1. the needs of the people
  2. the possibilities of technology
  3. the requirements for business success
• three spaces for design thinking:

  1. inspiration
  2. ideation
  3. implementation
• inspiration - the problem or opportunity that motivates the search for solutions
• ideation - the process of generating, developing and testing ideas
• implementation - the path that leads from the project stage into people's lives
• types of market problems:

  1. stated needs
  2. silent needs
• stated needs - are explicit statements from your market that declare i want a product to do something
• silent needs - our problems with as yet an undefined solutions
• to deliver products that solve your TARGET CUSTOMERS' problems you must first IDENTIFY MARKET PROBLEMS
• your market consist of:

  • existing customers
  • prospects
  • target market users
• existing customers - people who have already purchased your product
• prospects - people who have not yet purchased your product but is considering it
• target market user - people in your target market who are not currently looking for a solution
• key factors in order to make solutions to the problems:

  1. don't focus only on innovation and the competition
  2. don't focus only on customers
  3. don't focus only on revenue
• don't focus only on innovation and the competition - focus in solving the problem
• don't focus only on customers - customers understand problems but they cannot help you to move your products forward
• don't focus only on revenue - it is critical to find a balance between prospects and customers to ensure that your future revenue is protected while still keeping existing customers happy
• steps process of creating business,

  1. business concepts or entrepreneurial idea
  2. product opportunity or business opportunity
  3. business plan
  4. entrepreneurship
  5. enterprise