ENTREPRENEURSHIP-LQ-REVIEWER

• Demand is created by consumers and Supply is provided by entrepreneurs.
• Various ways of looking at the market:

  1. Demand-supply gap analysis
  2. Import-Export movement
  3. Forward-backward industry linkages
  4. The bigger Market
• Import-export movement - a number of products that are being supplied by entrepreneurs outside your locality or even outside your country, that you can actually source from within.
• DTI - Department of trade and industry
• Viability - products or service should be realistic, satisfy both ourselves as the entrepreneur and our customers.
• Profitability - the opportunity of gainful money -making
• Market Assessment - it studies whether market conditions are ripe for your product and service. It looks at your target market.
• Production Assessment - the creation and provision of your product and service.
• Organizational Assessment - it studies your ability to manage your people handling key positions. It involves the policies, recruitment, training.
• Financial Assessment - explains your current financial position using financial analysis tools such as Financial statements.
• 4Ms of production or operation:

  1. Manpower
  2. Method
  3. Machines
  4. Materials
• Manpower - the people who will help you move things in order. “employees”
• types of workers:

  1. direct workers
  2. indirect workers
• direct workers - whose primary jobs and functions are directly related to the production and operation of a business. Ex. service crew, barbers, carpenters
• indirect workers - not directly related to the production of a business. Ex. janitors, security guards, managers
• Method - the process that will be involved in the manufacture of your products in the business. ex. baking, cutting
• Machines - equipments, tools , instruments, appliances
• Materials - things needed running for your shop
• value proposition - identify what makes your product unique from the ones in the market.
• distribution channel - how your product will reach your customer.
• key resources - these are the things you need to operate and run your business
• Sales - the amount of money they want to generate from implementing their business ventures
• budgets - amount of money you are willing to spend on your business venture.
• profits - amount of profit they want to generate from implementing their business ventures
• savings - the amount of cash the student will set aside for his future
• In setting up your business you need to consider:

  1. location
  2. business registration
  3. people
  4. suppliers
• DTI - where chosen business name shall be registered for sole proprietorship
• SEC - securities and exchange commission
• SEC - where chosen business name shall be registered for partnership or corporation
• PROCESS:

  1. registered your business
  2. barangay clearance
  3. mayor’s permit
  4. tax registration
• bookkeeping - systematic recording, organizing and retrieving of all the financial transactions of a business or individual in a specific format.
• chart of accounts - a financial tool that lists all the accounts for a given accounting system
• sales journal - chronological list of all the sales transactions
• expense journal - a chronological list of all the expense transactions for a business.
• financial statements - formal reports that tell the financial story of a business
• 3 basic financial statements:

  1. cash flow statement
  2. income statement or profit & loss statement
  3. balance sheet
• cash flow statement - shows the current state of cash and the history of all cash transactions
• income statement - shows the history of the business profitability
• balance sheet - shows the state of the business assets , liabilities, and net worth of the business
• Chain:

  1. Materials
  2. supplier
  3. manufacturer
  4. distributor
  5. retailer
  6. consumer