ENTREPRENEURSHIP

MS. CRISTEL JOY ARONDA

ENTREPRENEUR ENTERPRISE

Person ENTREPRENEURSHIP Object

Process
of Action
 ENTREPRENEURSHIP
Is the propensity of mind to
take calculated risks with
confidence to achieve a
pre-determined business or
industrial objective
ENTREPRENEURSHIP
Is the act of setting out on
your own and starting
business
 ENTREPRENEUR
An entrepreneur is a person responsible for setting
up a business or an enterprise. He has the
initiative, skill for innovation and who looks for high
achievements. He is a catalytic agent of change
and works for the good of people. He puts up new
green field projects that create wealth, opens up
many employment opportunities and leads to
growth of other sectors.
WHO CAN BE AN ENTREPRENEUR?
There is not one single quality or
skill to define an entrepreneur.
Successful entrepreneurs come in
various ages, gender, race and
social status.
 ENTERPRISE
The outcome of the actor and the act, is
called the enterprise. An enterprise is the
business organization that is formed and
which provides goods and services,
creates jobs, contributes to national
income, exports and contributes to the
overall economic development.
ENTREPRENEURSHI
P AND INNOVATION
 ENTREPRENEURSHIP AND
INNOVATION
The freedom of competition afforded by
the capitalist economy serves to drive the
entrepreneur to innovative and get ahead
of his competitors lest he is driven out if
the market. Buyers of commodities have
tendency to patronize innovative offerings
of any kind and if one wans patronage, he
must remember this motivation.
 Innovation could be any of the
following:
1. A new product
2. A new process of production
3. The substitution of a cheaper material in an
unaltered product
4. The reorganization of production, internal function,
or distribution arrangement leading to increased
efficiency, better support for a given product, or
lower cost.
 Innovation could be any of the
following:
5. An improvement in instrument or methods of doing
innovation. Innovation may also be viewed as the last
stage in an important process consisting of the following:
a. Invention – which refers to the discovery or devising of
new products and processes;
b. Development – which refers to the process by which the
ideas and principles generated from the stage of invention
are embodied in concrete products and techniques
c. Innovation - which refers to the actual introduction of a
new product or process.
B
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WHAT IS A BUSINESS
PLAN FOR?
Entrepreneurs who plan to enter any business
plan endeavor must have a business plan on
hand to guide them throughout the process.
Different business plans are prepared for
different purposes. There are business plans
written prior to setting up an enterprise, which
are similar to a prefeasibility study and feasibility
study.
There are business plans that are written
during the first few years of the enterprise in
order to guide the entrepreneur on which
strategies would be most beneficial for the
enterprise to take. And there are business
plans that are focused on bringing the
enterprise to a higher level of growth.
A business plan serves many
masters.
- It serves the entrepreneur who must set
a navigational course.
- It serves investors and cautious
financiers
- It serves the managers and staff of the
organization so that they will know the
strategies and programs of the enterprise.
WHAT IS BUSINESS
PLAN?
 Business Plan
It is a written description of
your business's future, a
document that tells what you
plan to do and how you plan
to do it.
 Business Plan
It is a guide—a roadmap for
your business that outlines
goals and details how you
plan to achieve those goals.
FORMAT FOR A
BUSINESS PLAN
 The following format may be
good start:
I. Introduction
II. The Business Concept and the Business Model
III. The Business Goals: Vision, Mission, Objectives, and Performance Targets
IV. The Business Offering and Justification
V. Executive Summary
VI. The Business Proponents: Organizers with their Capabilities and Contributions
VII. The Target Customer and the Main Value Proposition to the Customer
VIII.The Target Market
IX. The Product and Service Offerings
X. The Enterprise Strategy and Enterprise Delivery Systems: Business Competitiveness
XI. The Financial Data
XII. The Capital Structure and Financial Offering: Returns and Benefits to Investors, Financiers, and
Business Partners
XIII.Supporting Documents
I. INTRODUCTION
 Business Concept

Is an idea that is basis for

founding or transforming a
business.
 Business Concept
- Basic information
(service/product)
- Target demographic
- Unique selling proposition
Business Concept: Coffee Shop
Concept
Open a coffee shop directly across the street from the Saint
Isidore College to capture business from 15,900 students.
 
Customer Needs
The Saint Isidore College is in an isolated location with the
nearest coffee shops 5 kilometers away. Students at the
college have no nearby place to study and socialize with the
exceptions of the college’s cafeteria. There is an opportunity
to open coffee shops and pubs in the area that can become an
integral and memorable part of the student life on the campus.
 
Issues
The school has at least 203 regular school days. Break such
as Semestral Break, Holidays and Summer will see slow
business.
HOW ARE COMPANIES
ORGANIZED?
 Business Model
- A framework for how a
company creates value
- It captures the fundamental
assumptions an key learning
about a new venture
 Business Model
Customer
Activities Relationships
Partner Value Customer
s Proposition Segments
Resources Channels

Cost Revenue Streams

 Value Proposition
What are you building and for
whom?

“Its not about your idea or

product”
 Customer Segment
Who are they? Why Would they
buy?

“Your customers do not exist to

BUY. You exist for them.”
 Channels

How does the product get from

our company to the costumer?
Customer Relationships
How does a company GET,
KEEP and GROW customers?
 Revenue Streams
How does the company MAKE
MONEY from each customer
segment
 Key Resources
What are the MOST
IMPORTANT ASSETS required
to make the business model
WORK?
 Key Partners
Who are the KEY PARTNERS
and SUPPLIERS needed to
make the business model
WORK?
 Key Activities
What are the MOST
IMPORTANT THINGS the
company must DO to make the
business model WORK?
 Cost Structure
What are the cost to operate the
business model?
VISION, MISSION
AND OBJECTIVES
 Vision, Mission and
Objectives

Vision Statement is a mental

picture of what you want to
accomplish or achieve.
 Vision, Mission and
Objectives
Mission Statement is a general
statement of how the vision will
be achieved. This is an action
statement that usually begins
with the word "to"
 Vision, Mission and
Objectives

Objectives provide specific

milestones with a specific
timeline for achieving a goal.
II. EXECUTIVE
SUMMARY
 Executive Summary
- is the brief introduction to a
business plan
- It provides a busy reader with
everything that needs to be
known about the new
venture’s distinctive nature.
 HOW DO I WRITE AN
EXECUTIVE SUMMARY?
 Mission Statement
Articulates the purpose of
your business.
Company Information
Give a brief history of your
company.
“Who you are and how to
contact you”
 Business Highlights

Describe the evolution of the

business
 Financial Summary

- if the purpose of the updating

the business plan is to seek
additional financing for
expansion.
 Future goals
- if you are seeking financing
explain how additional funding
will be used to expand the
business or otherwise increase
profits.
 SECTION OF AN
EXCUTIVE SUMMARY
 Who You Are

NAME LOCATION

CONTACT
What You Offer
What do you do?
Target Market
Your Goal

LOAN OR
INVESTMENT
Size or Scale

3
YEARS

SALES AND
MARGINS
 Critical Details

YOUR TEAM PARTNERSHIP

Executive Summary should then introduce and
highlights the good qualities of:

- The business proponents

- The enterprise organization and its
capabilities
- The technology providers and their
enterprise and experiences
- The suppliers and all the major service
providers
III. BUSINESS
PROPONENTS
 4 Types of Stakeholders
- Resource mobilizers and financial
backers
- Technology providers and
applicators
- Governance and top management
- Operating and supporting team
 IV. THE TARGET
CUSTOMER AND THE
MAIN VALUE
PROPOSITION
 Target Customers must
be:
- Sufficient size
- Sufficient paying capacity
- Sufficient interest to purchase the
products being offered by the
enterprise
 Main Value Proposition
Unique selling proposition of the
enterprise
V. MARKET DEMAND AND
SUPPLY, INDUSTRY
DYNAMICS AND MACRO
ENVIRONMENTAL
FACTORS
 - The business plan should
estimate the total market
supply and demand for the
product offerings of the
enterprise.
- It should then determine what
exactly influences this bigger
market.
 Supply and Demand
Demand – “the lower the price
the more you demand
Supply – “ the higher the price
the more you supply”
- The market analysis and
forecasting exercise should
lead to a quantification of the
current and prospective size
of the market.
The business plan should discuss
the relevant industry dynamics:
- Who are the competing
enterprises in the industry and
what are their comparative
advantages and disadvantages?
What business models and
strategies are they employing?
The business plan should discuss
the relevant industry dynamics:
- Who are the suppliers in
the industry and what are
their capabilities and
bargaining power?
 The business plan should discuss
the relevant industry dynamics:
- What are the channels of
distribution being used by
the industry? How effective
are these channels?
(SPEET) forces
 Social Environment
- Includes the demographic
and cultural dimensions
that govern the relevant
entrepreneurial behavior.
 Political Environment
- Defines the governance system of
the country or the local area of
business. It includes the laws,
rules and regulations on allowable
and disallowable business
practices.
 Economic Environment
Mainly driven by supply and
demand forces. It is the same
factor that drives the interest and
foreign exchange rates to
fluctuate with the movement of
the market forces
 Ecological
Environment
- Includes all natural
resources and the
ecosystem that defines the
habitat of man, animals,
plants and minerals.
 Technological
Environment
- Makes and breaks
competing participants
in any industry
 VI.
PRODUCT/SERVICES
OFFERING:
DESCRIPTION,
EVOLUTION AND
JUSTIFICATION
 Product/Services
It is the highlighting the
feature and attributes
that would most appeal
to the target customer.
Describe and Compare
The section needs to
explain exactly what are
you are selling and how it
fits in the market place.
 Price Points
Products may come in different
sizes, quantities or varieties that
will impact price, and services
might be more or less extensive
depending on the price to be
charged.
 Order Fulfillment
Explain what happens once someone
purchases what you are selling. If it’s a
product, they might buy from a retail
store, have it delivered from your online
shop, or perhaps they submit a
customer order in advance and pick it up
a later date
 Technology
This could be specific technology
you need in order to provide your
services or it might be
technology clients need in order
to take advantage of what you’re
selling
 VII. ENTERPRISE
STRATEGY AND
ENTERPRISE
DELIVERY SYSTEM
 Enterprise Strategy (ES)
The business plan should
expound on the ES by mapping
the competitive landscape and
by situating the enterprise and its
competitors as to their strategies
and chosen positionings.
 Enterprise Delivery System
(EDS)
The business plan should then
show how the EDS would enable
the business to implement the
Enterprise Strategy
 INPUT THROUGHPUT OUTPUT MARKETING DESIRED
OUTCOMES
• Harnessing • Conversion • Good • Positioning • Customer
of human, of input into produced or • Product satisfied
money and output and services • Packaging • Sales
physical the delivered • Place volume
resources transformati • People attained
on process • Promotion • Profits
• Resources within the • Price generated
mobilized factor or • People
- Money service performanc
- Men shop e
- Machines
- Materials
- Methods
- Manageme
nt
 VIII. FINANCIAL
FORECAST:
EXPECTED
RETURNS, RISKS,
AND
CONTINGENCIES
 Financial Forecast
- The business plan should then
calculate the expected returns
from the business.
 Important calculations

1. Expected return on sale

2. Expected return on assets or
investor
3. Expected return on
stockholders'’ equity
 IX.
ENVIRONMENTAL
AND REGULATORY
COMPLIANCE
 Environmental and
Regulatory Compliance
- The business plan must
articulate the laws, rules and
regulations governing the
business and the industry.
 Environmental and
Regulatory Compliance
- It should ascertain that all
necessary permits, licenses, and
authority to use proprietary
intellectual capital had either been
secured or would definitely be
secured.
 X. CAPITAL
STRUCTURE AND
FINANCIAL
OFFERING:
 Capital Structure and
Financial Offering
- The business plan must appeal to
its target audience.
- It must highlighting for them the
main features of the business plan
that they are looking form.