Entrepreneurship (MIDTERM)

Entrepreneurship

it is the art of turning an idea into a business

Entrepreneurship

it is the process of starting up a business to make a financial profit

Enterprise

another term used to address a business; it is the product (goods or services) one is offering for sale

Entrepreneur

a person who does initiative and risks, creates ideas and makes an enterprise

Entrepreneur

they give opportunities and satisfy the needs and wants of consumers

Business Plan

a written document that describes in detail how a business defines objectives and how it can achieve its goals

Business Plan

it is the written road map of a firm; it sets the navigational course of the business

Entrepreneur

Investors & Financiers

Managers & Staff

the three masters of the business plan

Summary Business Plan

• consists of 10-15 pages

• works best for new ventures

• used to “test the waters” to see if investors are interested

Full Business Plan

• has 25-35 pages

• works for ventures that need funding

• serves as a blueprint for company operation

Operational Business Plan

• made up of 40-100 pages

• primarily for an internal audience

• a guidance to operational managers

Format of Business Plan

I. Introduction

II. Executive Summary

III. The Business Proponents

IV. Target Customers & Main Value Proposition to the Customer

V. The Market

VI. Product and Services Offerings

VII. The Enterprise Strategy

VIII. The Financial Forecasts

IX. Environmental and Regulatory Compliance

X. Capital Structure and Financial Offering

Introcution

part of the business plan that contains the business name, tagline, concept, model, goals, and offerings

Business Name

it is the business’ legal name or official name of the entity that owns a company

Adam Fridman

he stated that a company name plays a monumental role on a brands growth and perception; it can make or break a company

catchy, creative, descriptive

a business name must be [], [], & [____] to be memorable and recognizable in order for customers to separate your products from others

descriptive

SEO

name style

story

trademarked, taken

domain name, social handlers

how to name a business you must

1. understand your business

2. think of ______ keywords

3. consider the ____ in the naming process

4. choose a ____ ____

5. tell a ____

6. ensure that the business name is not ______ or _______

7. verify that the ______ & _______ are available

Search Engine Optimization

stands for SEO; it is how you help customers find your site (example: google, bing, yahoo)

Domain Name

the address that people type into a browser bar to find the website

Business Concept

contains the essence of the enterprise in a concise and powerful manner; it stresses the value of the products offered to target customers

Business Model

the formula on how the enterprise plans to make money out of the business

Business Goals

part of the business plan that includes the vision, mission, objectives, and performance targets

Business Goals

it shows the future and long-term prospects of the enterprise

Vision

shows the future of the company [what we want to become and accomplish]; understanding your preferred future

Mission

it includes the core-values and steps to realize the vision. it defines the company and its purpose

Purpose

Business

Values

the mission expresses the organizations

1. (___) - needs we exist to address

2. (___) - what we are doing to address these

3. (___) - principles and beliefs that guide our work

Objectives

these are measurable, achievable, and time-bound end results that are more specific than the vision and mission

Key Result Areas (KRAs)

qualitative manifestations that the objectives are being achieved

Performance Indicators

these are quantified performance measurements that serve as an aspirational scorecard of the enterprise managers and motivational results of investors

Executive Summary

it contains everything that is relevant and important to the business audience; it is the synthesis of the entire plan

Executive Summary

it discusses and justifies the enterprise strategy and delivery system

Enterprise Strategy

it builds and develops the game plan for attaining competitiveness

Enterprise Delivery System

it is the entire process of converting the input (resources) into output and into outcomes

Business Propnents

also known as stakeholders

Resource Mobilizers & Financial Backers

Technology Providers & Applicators

Governance & Top Management

Operating & Support Team

the four types of stakeholders

Target Customers

these must be in sufficient size, have sufficient paying capacity and interest to purchase products being offered

Main Value Proposition

the unique selling proposition of the enterprise

Opportunity

an idea that has commercial potential. it is something you can make money with, develop a business around it, or create value with it

Opportunity Seeking

the endless curiosity to discover new ideas and see whether these ideas will work in the marketplace

Mind Frame

Heart Flame

Gut Game

the three factors essential to an entrepreneur’s opportunity seeking

Entrepreneurial Mind Frame

allows the entrepreneur to see things in a positive and optimistic light in the midst of a crisis or difficult situation

Entrepreneurial Heart Flame

the commonality between and inventor and entrepreneur; both are driven by passion and are drawn to find fulfillment in the act and process of discovery

Entrepreneurial Gut Game

the ability to sense without using the five senses, also known as intuition

New Knowledge

Macro Environmental Sources

Consumer Preference

Opportunities from Unexpected

Industry & Market Sources

Talents, Hobbies, Interests, & Skills

Opportunities from Future

Sources of Opportunities

Macro Environmental Sources

refers to the “big or macro forces” that affect the area, industry, and market the enterprise belongs to. it is divided into five categories (SPEET)

Socio-cultural Environment

includes the demographics and cultural dimensions; the beliefs, customs, traditions in a population

Political Environment

about the governance system; the laws, rules, regulations, permits, license, etc.

Economic Environment

the supply and demand forces; involves interests, foreign exchange rates, law of supply and demand

Ecological Environment

includes the natural resources and ecosystem; what resources are available, opportunities in env. problems

Technological Environment

involves new scientific and technological discoveries; this environment can make or break competing participants

Industry Sources

any facilities, operations, activities, and productions; refers to the companies involved in the process of producing goods

Rivals

Suppliers

Consumer Market

Substitute Products/Services

Support and Enabling Services

the five participants of the industry

Market Sources

the actual demand and supply & potential demand and supply of the industry the enterprise belongs to

(example: combo meals, more-for-less)

Micromarket

refers to the specific target market segment of a particular enterprise:

• current consumers of goods / services

• location / consumer group an enterprise wishes to serve

Consumer Preference

refers to the tastes of particular groups of people; it is affected by a consumer’s age, culture, and status