Entrep

4th Qa prep

who perceives opportunities inherent in the exchange of goods with great desire of profit

Entrepreneurial as a Missionary

as he exercises focus control, he sets high goals and strives to attain the projected target and accomplishment.

Entrepreneur is goal-driven

He marshals his resources to pursue the opportunities and takes immediate action to exploit his personal gain.

Entrepreneur is a marketing man

entrepreneurs start small but with their managerial talents and persistence they exploit the opportunities available for their disposal.

Entrepreneur starts small to Become Big

Good concepts need to be put in the planning table to avoid risk factors.

The ability to plan and conceptualize

The entrepreneur is able to forecast the future by seeking to ensure that the risks involved are properly controlled.

The ability to plan and conceptualize

A good business organization is based on people and resources.

The ability to organize the resources of the enterprise

An entrepreneur works with others and needs people with the same values and working ability.

The ability to organize the resources of the enterprise

People are like machines that need oil that will make them work smoothly and efficiently and effectively.

The ability to direct and motivate people in his organization

Machines will bug down if no oil is put into its chambers while in operation.

The ability to direct and motivate people in his organization

Controlling the whole operation is a difficult task for the entrepreneur.

The ability to control

Safeguards and control mechanisms could be put in place with carefully crafted policies and procedures.

The ability to control

Time management is a very essential ingredient to the success of an entrepreneur.

The ability to manage time

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Because of the numerous activities to attend to, the entrepreneur must be able to log on his time schedule so that important activities could be attended on time.

The ability to manage time

Business today is fast changing with the advent of technology and innovation.

The ability to adapt to the changing environment of business

The new entrepreneur must be able to adapt to these changes in the business landscape for him to go with the time of progress and extension.

The ability to adapt to the changing environment of business

the oil of the machine in a company

salary

Is a tool which helps the company in identifying the internal and external factors affecting their business

SWOT analysis

It can help the management to decide if they need to change their production processes of should they need to introduce new product or services

SWOT analysis

It is one of the mise effective way used in decision- making progress

SWOT analysis

It also helps to understand the market situation and their competitors

SWOT analysis

Knowing all the internal and external factors affecting company business, this can help the management to make a strategic planning process

SWOT analysis

Refer to all those things that the company is doing well in performing their jobs and maintain competitive advantage in the markets

Strengths 

Examples: include the company strengths on human resources, financial resources, company location, and company product promotions

Strengths 

Refer to all those things that your business is a disadvantage to others

Weakness

Examples: lack of materials, personnel attitude, poor location and lack of budget for promotion 

Weakness

The company takes advantage of the opportunity to increase profit

Opportunities

Example: larger market, company expansion, new customer trends

Opportunities

The company should look at the existence of external factors that should have a negative impact on company’s operation

Threats

Example: changes in government policy, changes in consumer tastes and preferences. Inflation and recession

Threats

type of business that is owned by one natural person and in which there is no legal distinction between owner and the business

Sole proprietorship

is a business organization owned by two or more persons.

Partnership

is a business organization created under government charter.

Corporation

is a business organization owned by and operated for the benefit of those using its services.

Cooperative

You are the boss and you keep all the profits

Advantages Sole proprietorship

Decision making is simple because you have complete control over the business

Advantages Sole proprietorship

Relatively easier and less costly to form because there are fewer formal business requirements

Advantages Sole proprietorship

Lower extent of government regulation and relatively lower taxes 

Advantages Sole proprietorship

You assume all the risk of loss

Disadvantages Sole proprietorship

You take all responsibility and rely mostly on yourself in making decisions

Disadvantages Sole proprietorship

It is more difficult to raise capital because you rely mostly on your personal assets and loans to initially finance the business

Disadvantages Sole proprietorship

You are personally liable for the debts and obligation of the business

Disadvantages Sole proprietorship

Better business decisions can be made because “two heads are better than one”

Advantages Partnership

You share the business risk and the responsibility of running the business with your partners

Advantages Partnership

Compared to corporations and cooperatives, a partnership is easier to form because only a contractual agreement between the partners is needed

Advantages Partnership

Greater capital compared to a sole proprietorship

Advantages Partnership

Relatively lower extent of government regulation compared to corporations

Advantages Partnership

Making business decisions may give rise to conflict among the partners

Disadvantages Partnership

You don't keep all the profits because you need to share them with your partners

Disadvantages Partnership

Limited life, in the sense that a partnership can be easily dissolved by the withdrawal, retirement, death or insanity of one of the partners.

Disadvantages Partnership

Lesser capital compared to a corporation

Disadvantages Partnership

A partnership (other than a general professional partnership) is taxed like a corporation

Disadvantages Partnership

Unlimited liability. The partners can be held liable for partnership debts up to their personal assets

Disadvantages Partnership

A stockholder who is not a member of the corporation’s board of directors is relieved from managerial responsibilities. Only the stockholders that are elected as members of the board of directors and those they hire or appoint are tasked with managerial responsibilities. This can be an advantage because a regular investor does not need to work for the corporation to earn income

Advantages Corporations

Limited liability of the owners because stockholders are liable for corporate debts only up to the amount the have invested

Advantages Corporations

Greater capital and ease in raising additional funds because a corporation can issue shares to a wider extent of investors 

Advantages Corporations

If the corporation is listed, you can easily transfer your shares to other investors by selling them in the stock market. Many investors earn profit this way– by buying shares at a sheep price, wait for the prices to go up, and sell them. This activities are referred to as stock trading.

Advantages Corporations

Unlimited life, in the sense that the withdrawal, retirement, death or insanity of one of the stockholders does not dissolve the corporation.

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Although a corporation has a legal life of 50 years, this can be renewed for an indefinite number of renewals 

Advantages Corporations

Your “say” on corporate affairs depends on the number of shares you own. Those who own more shares are the bosses and enjoy a larger share of the corporation's profits

Disadvantages Corporations

A corporation is more difficult and more costly to form because there are more formal business requirements

Disadvantages Corporations

Greater extent of government regulation and higher taxes

Disadvantages Corporations

Unlike for a sole proprietorship or a partnership where business profits are easily distributed to the owner/s, in a corporation, you have to wait for the board of directors to declare dividends before you get your share in the profits of the corporation.

Disadvantages Corporations

Unlike in a corporation, your “say” on cooperative affairs is not affected by the number of shares you own. This is because, in a cooperative, each member is entitled to one vote regardless of his or her shareholdings. However, members with larger shareholdings are entitled to larger amount of profit (net surplus)

Advantages Cooperative

A cooperative is generally exempt from paying taxes. This is the main advantage of a cooperative and the most common reason why cooperatives are organized. Moreover, a cooperative may receive assistance from the government

Advantages Cooperative

Compared to a corporation, a cooperative is easier and less costly to form because there are fewer formal business requirements

Advantages Cooperative

Unlimited life, in the sense that the withdrawal, retirement, death or insanity of one of the members does not dissolve the cooperative

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Although a cooperative has a legal life of 50 years, this can be renewed for an indefinite number of renewals.

Advantages Cooperative

Limited liability- the member reliable for cooperative debts only up to the amount they have invested

Advantages Cooperative

A cooperative is prone to poor management. Cooperatives are, more often than not, managed by the members who were elected as board of directors rather than by employed professional managers. Since there is a ‘one-members, one-vote’ policy in a cooperative, influential members tend to dominate the election process. The result is that those who get elected may ont be the ones who are most qualified for the task

Disadvantages Cooperative

Compared to a corporation, it is more difficult for a cooperative to sustain growth. This is in part because of the lack of profit motive and lack of management expertise. Moreover, a cooperative’s success strongly depends on the members’ cooperation and members are not always willing to cooperate. The success of a business depends on continuing effort. Sadly, many cooperatives are zealous at the start but fail to sustain continuing effort resulting in the waning down of their activities. This does not mean that all cooperatives are small businesses. There are many multi-billionaire cooperatives in our country. Some might be located in your community

Disadvantages Cooperative

Unlike in a corporation where the stockholder can freely transfer his shares, in a cooperative, there are restrictions on the transfer of a member’s shares. For example, the approval of the board of directors must first be obtained before a member can transfer his or her shares.

Disadvantages Cooperative

an entrepreneur's blueprint to success.

Business plan

This document details what the plan to do with the venture and how exactly you want to achieve them.

Business plan

It also details the most important questions you should ask yourself before, during and after your business has been taken off.

Business plan

It is designed as the form of ownership of the business which at the outset is known to the investors.

Management structure and component

It deals with product demand analysis.

Marketing and distribution system

It should show the competitive product advantage over existing products or services and design the marketing program of the enterprise.

Marketing and distribution system

Refer to the need in making the product or service.

Production and technology

This refers to the machinery, plant location and other technical aspects in making the product.

Production and technology

aspect refers to the capital investment and sources of funding the operation of the business.

Financial management

It contains the rationale and background of the study undertaken.

Introduction 

It should include the importance of the project and the proponents background and their desire to establish the business.

Introduction 

brief history or how the business was organized

Brief description of the business

highlights of the findings in every phase on the business study

Brief description of the business

refers to the market segmentation for the distribution of the product or services

Market profile

Projected assumption in the first operation, then five years and ten years operation

Demand analysis

major segment users of the product and their location

Demand analysis

refers to the selling price of the products

Selling price

refers to the competing product in the markets as to its quality and market acceptability

Competitions

refers to the transfer or movements of products from the producer to the ultimate users.

Distribution and cost of transportation

A mean of target market or it is the method of strategy to penetrate a particular market segments

Channel of products and distribution

it is analysis of how competitors distribute the product to existing users

General competitive practice

Refers to the place of target market

Geographic segmentation strategy

the educational background and the lifestyle of the target market

Psychographic strategy

mean the target market as sex, age, income and other personal factors of the target market

Demographic segmentation strategy

this has something to do with the price index of any pricing strategy that will attract customers

Pricing strategy

the choices could be retailers, wholesalers, dealership, franchise or direct marketing

Channel of distribution

media network, personal selling, billboards or any media penetration strategy

Promotion and advertising

tells about the product or services that the entrepreneur will offer to its target market

Production specification

Detailed layout of the product process as the product goes into the production line indicating the flow process, materials and equipment to be used and normal time table that the product will be finished

Product process

refers to the volume of production per shift per day or monthly basis considering target market consumptions

Plant rated capacity