Entrepreneurial Thinking and Developing a Business Plan

Vocabulary flashcards covering key terms and definitions from Entrepreneurship Modules on mindset, design thinking, types of ventures, entrepreneurial process, and components of a business plan.

Entrepreneurial Mindset

way of thinking reasoning, and having a perspective on seizing an opportunity

Entrepreneur

An individual that creates something new, assumes business risks, and seeks profit and rewards.

Common Competencies (Entrepreneurship)

• Constantly seek opportunities and act on them

• Recognize and prepare for risks and uncertainties

• Maintain flexibility and resiliency

• Develop and maintain social relations and network

Skill of Reflection

The ability to analyze past actions, learn from successes or failures, and improve future responses. Learn from your experiences.

Skill of Experimentation

Involves taking a concrete action to test an approach or several possible approaches.

Skill of Creativity

Creativity is being open to new perspectives or other ways of looking at things that are better or of higher quality.

Skill of Empathy

To understand the actual conditions of other people, to know their real needs

Skill of Play

Employees having fun and freely voicing out their individual concerns help strengthen the skill of play vital to creativity in the workplace.

Design Thinking

thinking process commonly used by designers to solve certain problems related to products and services.

Empathize

The starting point of your business venture should be human needs. Design thinking, therefore, is humancentered. One of the essential competencies in being an entrepreneur. To empathize means to put yourself in the shoes of the other person for you to know how that other person thinks or feels about a given situation.

Define

Identifying a specific need for a particular group is called a design challenge.

Ideate

Involves generating and developing new ideas to address the needs of people. Brainstorming of ideas helps surface out comments and suggestions from group members related to the identified problem.

Prototype

creating a sample product or service offering that incorporates features and qualities desired by the by the target customer

Commercial Entrepreneurship

income-generating enterprises that are established mostly for the purpose of generating profits.

Careers in Entrepreneurship

Commercial Income

Social Entrepreneurship

Corporate entrepreneurship

Start up entrepreneurship

Buying a franchise

Social entrepreneurship

Social Entrepreneurship

social impact for the poor and other disadvantaged groups

Corporate Entrepreneurship (Intrapreneurship)

creating new products, ventures, or organizational renewal within large organizations.

Start-up Entrepreneurship

This is a type of entrepreneurship involving the creation or setting up of a new small business. To offer a product for The purpose of generating a profit (as a commercial enterprise) or generating both profit and creating a social impact (as a social enterprise).

Franchise

Franchise is a license purchased by an entrepreneur allowing one to trade under the name of that established business.

Entrepreneurial Process

1. Identification and Evaluation of the Opportunity

2. Development of the Business Plan

3. Determination of the Required Resources

4. Management of the Resulting Enterprise

Identificatio and evaluation of the business opportunity

The entrepreneur must stay alert to business possibilities, which may arisefrom various sources such as friends, acquaintances, family members, social media, consumers, business associates, technical experts, government agencies, or even random encounters with strangers.

Develop a Business Plan

prepare a good business plan to secure the defined opportunity

Determination of the Required Resources

Must determine the resources you need to address the opportunity

Management of the Resulting Enterprise

Ready to implement the business plan

Business Plan

the roadmap of new Business

Introduction (Business Plan)

It is the general perspective of the business.

Executive Summary

It points out the overall highlights of the business plan.

Environmental Analysis

It is a strategic tool that determines the external and internal factors affecting the performance of the business.

Organizational Plan

Provides a detailed description of the form of the business organization, liability of the owner or owners, organizational structure, roles and responsibilities, and salary requirements.

Production Plan

It describes the activities related to the production of goods.

Operation Plan

It outlines the various activities from the acquisition of raw materials to the delivery of the products to the target consumers.

Proposed Name of the Business

– Reflect the business identity and Image

– Promote the philosophical values and culture that the business values the most

– Profess the brand identity of the product

– Attract or influence the target consumers

Address of the Business

Raw materials and other manufacturing supplies are shipped by the seller to the designated business address. It is also necessary for the business to have an email address to facilitate electronic communication between the business and its customers, suppliers, creditors, and other significant parties.

Name of the Owners

– Sole Proprietorship: Name of the owner (Solo Owner)

– Partnership: Names of the partners and extent of liabilities (Two Owners)

– Corporation: Names of the owners, nationalities of the owners, and addresses of the incorporators (3 or More Owner)

Description of the Business

– Nature and form of the business to be undertaken

– Innovative features of the business

– Reason for the selection of the business

– Current situation of the business

– Product or service that it plans to produce or serve

– Various plant and office equipment (optional)

– Size of the proposed business

– Future parties with whom contracts may be necessary

– Personnel requirement

– Administrative operation

Location of the Business

– Proximity to the target consumers

– Distance from the sources of raw materials, labor, and utilities

– Availability and cost of transportation

– Peace and order situation

– Presence of direct competitors

– The geographic and climatic conditions

Funding Requirement and Source

– The estimated total initial cost of the business venture must be clearly indicated.

– Include the projected breakdown or allocation of the total cost.

Incorporators

refer to the persons who originally formed the corporation.