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