Entrepreneurship

• It is a written narrative that describes what a new business intends to accomplish and how it plans to achieve its goals.


  Business Plan
• It forces the entrepreneurs to SYSTEMATICALLY THINK THROUGH EVERY ASPECT of their new venture.


  Internal Reason (Reasons for Writing a Business Plan)
• It COMMUNICATES THE MERITS OF A NEW VENTURE to outsiders, such as inventors and bankers.


  External Reasons (Reasons for Writing a Business Plan)
• To SOLICIT OPINIONS AND ADVICE FROM EXPERTS/MENTORS who can freely give invaluable advice regarding the proposed business.


  External Reasons (Reasons for Writing a Business Plan)
• Important factors which will produce a successful business include:

  1. A SOUND BUSINESS CONCEPT
  2. UNDERSTANDING OF YOUR MARKET
  3. A HEALTHY, GROWING, AND STABLE INDUSTRY
  4. CAPABLE MANAGEMENT
  5. ABLE FINANCIAL MANAGEMENT AND CONTROL
  6. A CONSISTENT BUSINESS FOCUS
• What are the FOUR major sections of a BUSINESS PLAN OUTLINE?

  1. Marketing Plan
  2. Production Plan
  3. Organization and Management Plan
  4. Financial Plan
• The 7 Ps of the Marketing Mix are the following:

  1. Product
  2. Price
  3. Place
  4. Promotion
  5. People
  6. Packaging
  7. Positioning
• It is picking the right business to begin with.

  A SOUND BUSINESS CONCEPT
• It is to test market your product or service before you start.

  UNDERSTANDING OF YOUR MARKET
• It is to find businesses with great economics and not necessarily great inventions or advances to mankind.

  A HEALTHY, GROWING, AND STABLE INDUSTRY
• It is to look for people with complementary skills.

  It is also a plan to hire people who have skills that you lack.

  CAPABLE MANAGEMENT
• It is to have the knowledge on financial tools to keep track of your financial performance such as income statement, balance sheet, cash flow, and fund management.

  ABLE FINANCIAL MANAGEMENT AND CONTROL
• It is to focus on something you can do so well.

  A CONSISTENT BUSINESS FOCUS
• In this section of the business plan, it aims to answer the following questions:

  • What is the nature of the project/business?
  • What are the entrepreneur's competencies and qualifications?
  • What are the project's contributions to the local and national economy?

  Executive Summary
• It covers: ON-GOING PRICING and MARK-UP PRICING.

  It answers the following questions:

  • Is it worth buying?
  • Are the prices competitive?
  • Is the service/product affordable to the target market?

  Price
• It is the DISTRIBUTION.

  It answers the following questions:

  • Where to sell?
  • In the community? Town? City?
  • Why there?
  • Where else to go?

  Place
• It is informing the customer about the product through ADVERTISING and SELLING.

  Promotion
• It answers the questions:

  • Who will sell the product?
  • Who are the workers?

  People
• It conveys a message. Also, it is protecting the product.

  Packaging
• It is the COMPETITIVE ADVANTAGE.

  This means that companies that think of what they can gve to people far better than those think of what they can get.

  Positioning
• It refers to the continuous assessment and adjustment of prices based on market conditions, customer demand, and competition. It involves regularly monitoring and updating prices to ensure they remain competitive and profitable.

  On-going Pricing
• It involves adding a predetermined percentage or amount to the cost of a product or service to determine its selling price. The markup percentage is typically based on factors such as production costs, desired profit margin, and market demand.

  Mark-Up Pricing