Entrepreneur

 Lesson 1: the development and implementation of business plans, how to

Why do we need to study entrepreneurship? streamline operations or how to expand into a new market.
How entrepreneurship does affect us?
Management analysts
Entrepreneurship teach us to.. -The person who evaluates a business' systems, procedures and
creates opportunity operations, they may also review a business' financial matters, such
ensures social justice as the ratio of income to expenditures.
instills confidence
stimulates the economy Sales
take risks -Someone who works in sales or runs the department needs to know
fail and to persevere how businesses run. They need to know how to represent a company,
become creative, inventive and innovative manage accounts, and follow up on leads.

Entrepreneurship is a key driver of our economy. Research and development

-The 1987 Philippine Constitution recognizes entrepreneurship -To work in R&D, you need to understand business concepts,
as an engine of economic growth. procedures, and practices. With all of the training and education
-Article XII Section 1 highlights the role of private enterprises someone has received learning about entrepreneurship, they are well
in supporting equitable distribution of income and wealth, prepared for this type of position.
sustaining production of goods and services and expanding
productivity, therefore raising the quality of life.
Not-for-profit fundraiser
Entrepreneurship is more than just an economic term a -Being able to raise funds requires understanding the importance of
way of thinking. - it is a way of thinking business and networking relationships. It is a great place for someone
-People exposed to entrepreneurship frequently express that with this type of degree because you will have experience in studying
they have more opportunity to exercise creative freedoms, advanced concepts that can be used to your advantage on the job.
higher self- esteem, and an overall greater sense of control over
their own lives. Intrapreneur
-Entrepreneurship is a way of inspiring creative individuals to -An intrapreneur is an inside entrepreneur, or an entrepreneur within
pursue opportunities despite its risks. a large firm, who uses entrepreneurial skills without incurring the
risks associated with those activities.
What Makes Someone an Entrepreneur?
Personal Attributes
Creativity is the spark that drives the development of new  Lesson 2
products or services or ways to do business. It is the push for INTRODUCTION TO BUSINESS PLAN PREPARATION
innovation and improvement. Business refers to the organized - efforts and activities of
Dedication is what motivates the entrepreneur to work individuals to produce and sell goods and services for profit.
hard. Planning of an ideas must be joined by hard work to Business Plan is a detailed and - integrated written
succeed. document that describes the various activities involved in
Determination is the extremely strong desire to achieve opening and operating a new entrepreneurial venture.
success. It includes persistence and the ability to bounce back
after rough times. 10 Reasons Why You Need to Prepare a Business Plan for
Flexibility is the ability to move quickly in response to Small Business
changing market needs. It is being true to a dream while also 1. To help you with critical decisions
being mindful of market realities. 2. To iron out the kinks
Leadership is the ability to create rules and to set goals. 3. To avoid the big mistakes
Passion is what get entrepreneurs started and keeps them 4. To prove the viability of the business
there. 5. To set better objectives and benchmarks
Self-confidence comes from thorough planning, which 6. To communicate objectives and benchmarks
reduces uncertainty and the level of risk. 7. To provide a guide for service providers
"Smarts" consists of common sense joined with 8. To secure financing
knowledge or experience in a related business or endeavor. 9. To better understand the broader landscape
Specific, Measurable, Achievable, Relevant and Time- 10.To reduce risk
management
MAJOR PARTS OF THE BUSINESS PLAN
Why should becoming an entrepreneur be any different? 1. Introduction
Required Education 2. Executive Summary
-educational requirements for entrepreneurs are nonspecific 3. Environmental Analysis
-all entrepreneurs need capital, so the ability to write an effective 4. Business Description
business plan is vital 5. Organizational Plan
6. Production Plan
Required Skills 7. Operation Plan
-tolerance for risk taking and a willingness to leave the security of a 8. Marketing Plan
conventional and tedious job 9. Financial Plan
-the ability to multitask is a key 10.Appendix
Introduction
Career Outlook the introduction presents the general perspective of the
-earnings for entrepreneurs vary drastically, and income is often business. It may consist of one to two pages. It includes, among
unstable, especially in the early days of a new business others, the following sections:

Career Opportunities in Entrepreneurship 1. PROPOSED NAME OF THE BUSINESS

Business consultant 2. ADDRESS OF THE BUSINESS
- Business consultants provide advice about business issues, such as 3. NAME OF THE OWNER OR OWNERS
 Entrepreneur
4. DESCRIPTION OF THE BUSINESS fixtures, equipment, supplies, and working capital. This section also
5. LOCATION OF THE BUSINESS presents the source or sources of funds. The initial cost of the
6. FUNDING REQUIREMENT AND SOURCE investment may be provided solely by the owner or owners or partly
by the owner and creditors.
Proposed Name of the Business
The formulation and drafting of the proposed business
name is not as simple as it sounds. It is delicate and important a  Lesson 3:
entrepreneurial task. Remember that the name of the business may BUSINESSMAN VS ENTREPRENEUR
exist in the market for the many years. Careful and in-depth planning
is of prime importance GOAL
BUSINESSMAN
The proposed business name must: -DO BUSINESS TO MAKE PROFITS/ BECOME OWN
1. Reflect the business identify and image, BOSS
2. Promote the philosophical values and culture that the business -DO BUSINESS FOR LIVELIHOOD & FINANCIAL GOALS
values the most, ENTREPRENEUR
3. Profess the brand identity of the product, and -DO BUSINESS TO PURSUE THEIR PASSION
4. Attract or influence the target costumers -FOCUSSED ON WHAT THEY CAN OFFER TO THE
WORLD MAKE A DIFFERENCE
Address of the Business
It is important that the address of the Business is correctly WHAT IS IMPORTANT?
written because all business correspondence is mailed to the business BUSINESSMAN
address. Raw materials and other manufacturing supplies are also -MONEY
shipped by the seller to the designated business address.
Nowadays, it is also necessary for the business to have an SOCIAL WORKER
e- mail address to facilitate electronic communication between the -SOLUTION TO A PROBLEM
business and the customers, suppliers, creditors, and other significant
parties. ENTREPRENEUR
-SOLUTION TO A PROBLEM
Name of the Owner -MONEY
The name of the owner must be properly stated. In a sole
proprietorship, there is only one owner. In case the venture is a TREATS CUSTOMERS
partnership, the names of the partners, including the extent of their BUSINESSMAN
liabilities, must be indicated. For example, if partner's must be -CUSTOMERS ARE LIFEBLOOD OF HIS BUSINESS
properly mentioned. a -SEES CUSTOMERS AS SOURCE OF SALES & REVENUE
For business ventures that will operate as a corporate
entity, the names, nationalities, and addresses of the incorporators ENTREPRENEUR
must be given. Incorporators are persons who originally formed the -CUSTOMERS ARE HIS LIFEBLOOD
corporation. -SEES CUSTOMERS AS DUTY & FULFILLMENT

Description of the Business IDEA

A brief description of the business must include BUSINESSMAN
information about the type of product or service that the business -MAINLY LOOKS FOR UNORIGINAL IDEAS
intends to produce or provide. It may include a brief information -SHOWS INTEREST IN FRANCHISE OR HOT BUSINESS
about the ultimate mission, vision, and objectives of the business.
The other products or services that the business plans to produce or ENTREPRENEUR
provide must also be mentioned in the description of the business. -HE IS AN INVENTOR
-INVESTS TIME ENERGY & MONEY ON HIS OWN IDEA
Location of the Business
What is the difference between the sections Address of the RISKS
Business and Location of the Business? BUSINESSMAN
The former simply states the exact business address. No -TAKE CALCULATED AND MANAGED RISKSBOSS
additional description is provided to highlight the exact business -CANNOT AFFORD TO LOOSE MONEY & SUFFER
address. The latter indicates the reason/s for the selection of the FROM BANKRUPTCY
location. In case the processing plant is not within the vicinity of the
business, its exact location must be described.
ENTREPRENEUR
-TAKE CRAZY RISKS
-DON'T CARE LOOSING MONEY & TIME TO PURSUE THEIR
PASSION
The following factors should be considered when deciding
on the location of the proposed business: TREATS EMPLOYEES
1. Proximity to the target customers BUSINESSMAN
2. Distance from the sources of raw materials, labor, and utilities. -HIRES EMPLOYEES TO GROW HIS BUSINESS
3. Availability and cost of transportation -HE IS AN EMPLOYER & MANAGER
4. Peace and order situation
5. Presence of direct competitors ENTREPRENEUR
6. The geographic and climatic conditions -INVITES PEOPLE TO HELP THEM GROW
-HE IS A FRIEND AND A LEADER
Funding Requirement and Source
The estimated total initial cost of the business venture must HOW HE SEES COMPETITION
be clearly indicated. It should include the projected breakdown or BUSINESSMAN
allocation of the total cost, e.g., how much will b for building, -TRIES HARD TO BEAT HIS COMPETITORS & WIN
 Entrepreneur
COMPETITION seek to become as an organization, yet describe something that
is realistic. The vision should generate human energy and
ENTREPRENEUR engagement. In other words, it should provide direction and
-TRIES TO BEAT HIMSELF focus for the organization.
To develop a vision statement, ask yourself these
SUCCESS questions:
BUSINESSMAN -What is your dream or vision of the future?
-DEFINES SUCCESS AS SUCCESS OF HIS BUSINESS & -What is the loftiest picture you can imagine?
STAKEHOLDERS Then, convince others of the value of that vision. Express it
in a way that aligns with their best interests. Encourage them to
ENTREPRENEUR buy into your purpose for the organization. Keep the statement
-DOESN'T DEFINE SUCCESS brief and memorable. Use it to focus your activities
-LET THE HISTORY DEFINE THE SUCCESS OF HIS
ACCOMPLISHMENTS Mission
-Your mission is the business reason for your organization's
existence. It is an element of the charter. It doesn't describe a
 Lesson 4: specific outcome and contains no time limit or measurement.
Executive Summary of Business Plan The mission statement provides the basis for setting your goals
-2-pages printed and is used to allocate resources.
-5 pages handwritten A typical mission statement format might be:
-Not too short but not too long -To provide (product) to (customers) for (reason) in
-After introduction, written in simple language but make sure (marketplace).
it's impressive to readers -To define your mission, begin by describing why your
organization exists. Identify your scope of products and
5 parts services. Identify your customers and the audience for your
Vmgo offerings. Then, write a brief and succinct mission statement.
Bus model (removed)
Bus & product position Goals are conditions to be achieved in the future. They
Wealth improvement approaches must be defined consistent with your vision, mission, and strategic
Parties supporting the business directions. Goals guide your decisions and actions. However, they
usually do not involve measurable results, and therefore, do not
Executive Summary change as often as objectives.
-It is considered the next major part of the business plan
after the introduction. It points out the overall highlights of the Objectives are focused on critical issues and milestones.
business plan as well as a bird's eye view of its sections. They describe the activities and targets to achieve your goals. They
▷ It must be written in simple language that can be easily identify the dates for completing the activities. They are measurable
understood and at the same time attract the attention and in terms of being achieved, or not.
influence the decision of the reader.
Business and product position
How to write an executive summary? -It will help determine how the business defines its course and the
Executive summary must include the following sections: process of accumulating wealth.
-VMGO of the business ▸ It tells the size of the market and the target market share of the
-Business model business and product.
-Business and product position It must be able to convince the readers that the proposed business has
-Wealth improvement approaches a competitive advantage in the market.
-Parties supporting the business

VMGO of the business Essence

The business plan must depict the fundamental -How the brand makes me look?
characteristics, nature, philosophical values, identity, and -How the brand makes me feel?
image of the business. -What the product does for me?
-How would I describe the product?
Vision
-Where are we going? Wealth improvement approaches
-What does a firm would vision? ultimately become? like ▷ Describes the methodologies or approaches that will be taken by
the business in order to:
Mission
-How will you achieve the 1. Maintain a competitive advantage,
-to usually begins with the word "to" 2. position the business in the market,
3. improve the market share, and
Goals 4. maximize the utilization of resources.
-It is a big picture of what you want to achieve; and
-It is an intermediate result to be achieved by a certain time as It also includes a brief discussion of the marketing policies and
part of the grand plan. financial operations of the business, and the profitability level of the
industry and of the business.
Objectives
-WHAT is to be accomplished by WHEN; and it should be Standard benchmarks are good indicators in assessing the economic
quantified if possible. performance of the business. Involves;
CUSTOMER
Vision RESEARCH
-A vision statement is created as a compelling verbal image and INNOVATE
forms a mental picture of the future. It should define what we ADVERTISING
 Entrepreneur
OPPORTUNITY
SOLUTION
STRATEGY
BRANDING
CONCEPT

Parties supporting the business

▷ It is a description of the parties that strongly support the business.
▷ The parties that have direct relationship with the business are as
follows:
1. Consumers
2. Creditors
3. Suppliers
4. Employees and staff

▷ Relevant information about individuals and parties that support the

business is important since the proposed business may conduct
transactions with them later.

 LESSON 4
BUSINESS DESCRIPTION
 Entrepreneur
ORGANIZATION PLAN the head of the production and marketing operations.
The entrepreneur prepares the structure that best fits the
The organization plan provides a detailed description of the business organization and hires the most qualified people to do the tasks.
in terms of the following:
Roles and Responsibilities
1. Form of the business organization
2. Liability of the owner or owners The roles and responsibilities of the various positions in the business
3. Organizational structure 4. Roles and responsibilities organization must be clearly defined in order to minimize and avoid
5. Salary requirements misunderstanding and overlapping of functions. The educational
requirements and experiences required of the workers must also be
In case a feasibility study has been prepared prior to the preparation specified. Complete information about the expectations of a
of the business plan, most of the information contained in the particular job or positions facilitates evaluation and hiring of
organization plan can be found in the management aspect of the qualified personnel and the assessment of performance of existing
feasibility study. workforce. Furthermore a clear set of selection criteria for every
position in the organization eases the hiring process and assures the
Forms of the Business Organization organization that only qualified personnel are hired. It will be better
A business organization can come in the form of a sole if the entrepreneur prepares early a list of positions together with the
proprietorship, a partnership, or a corporation. There must be a respective job specifications.
purpose for the selection of the most appropriate business form. In
other words the mere statement, "The ABC Manufacturing shall be in Salary Requirements
the form of a sole proprietorship," is an incomplete description of the
business organization. The organizational plan must show the total estimated monthly and
annual salary requirements of the business. All other mandatory
The factors affecting the selection of the most appropriate business benefits like the employer's contributions to the Social Security
form include the following: System (SSS), Pag-Ibig, and Philhealth must likewise be specified. If
some legal plans and moves of the Congress of the Philippines will
1. Capital requirement bring about increases in the salaries of personnel, the projected
2 Liability of the owner or owners amount must be included in the disclosure as well.
3. Management and supervisory skills
4 Tax implications
5 Government intervention PRODUCTION PLAN
6. Nature of the Business
7. External financing requirement The Production plan presents or describes activities related to the
production of goods. The production plan is the result of the industry
Liability of the Owner or Owners analysis, particularly the study of supply and demand and consumer
This section describes the extent of the owner's financial behavior.
obligations with creditors. The creditors can be in the form of
individual persons, suppliers of raw materials and supplies, or The production plan usually includes the following:
financial institutions. The extent of financial liability can either be
limited or unlimited. 1. Production Schedule
2. Production Process
The term limited liability means that in the case of business 3. Processing Plant and equipment
dissolution and there still remains unsettled financial obligation of 4. Sources of Material
the business, the creditor cannot go after the personal property of the 5. Production Cost
business owner. The liability of the owner is only up to the extent of
his/her financial contributions to the business. On the other hand, the This section basically applies to manufacturing entities. For service
term unlimited liability means that the creditors can run after the entities, section must be modified and labeled as Service Provision
personal property of the owner in the event that the business fails to Plan.
fully settle its financial obligation during business dissolution.
Production Schedule
The extent of the liability of the owners in a sole proprietorship and a The production schedule presents the total number of
partnership is usually unlimited. In a corporate form of business goods to be produced and the expected time to produce them. The
organization, the shareholders have limited liability. They are only total number of units to produce, however. is usually affected by the
liable to the extent of their investments in the corporation. The following factors:
investment of the shareholders is represented through ownership of 1. Demand for the product
shares or stocks For t 2. Availability of resources
3. Capacity of the plant
Organizational Structure
The organizational structure of the business is usually The primary factor that influences the number of goods to be
shown or reflected in the organizational chart. It shows and defines produced is market demand. The entrepreneur must produce goods
the hierarchy of the different positions in the organization and the based on the total demand of the consumers. The second
interrelationships of the different offices or departments. The consideration is timing. Producing the goods exactly at the time
organizational chart depicts the flow of communication within the when the consumers need them is an excellent production practice.
organization, and the line and staff authority that must be observed
and executed. Production Process
This section of the plan must show the estimated cost of
A corporation has the most complicated organizational structure, production. The three elements of cost, namely labor, direct
since most corporations are composed of a huge workforce and also materials, and factory overhead must be properly described and
if the corporation operates across the different parts of the accounted for. In the event that the final product involves the use of
Philippines. On the other hand, a small business, like the business several direct or indirect materials, all the materials used in the
that you intend to pen, has a very simple organizational structure- the production of goods must be properly listed and provided with the
owner acts as the president or general manager and, at the same time,
 Entrepreneur
cost. The total cost of the proposed product may serve as the basis in 3. Manner of shipping the product
setting its selling price, which not be lower than its production cost. 4. Other terms and conditions like sales contract.

The proper operation plan on the shipment of goods must be clearly

OPERATION PLAN defined. It would be too costly on the part of the business to lose
The operation plan is a major section of the business plan millions of pesos on shipment. For example, who owns the products
that outlines the various activities, from the acquisition of raw in transit that cost ten million pesos? In transit means that the product
materials to the delivery of the products to the target consumers. is no longer in the custody of the seller, but the buyer has not yet
received it.
The operation plan commonly covers the following areas:
In a situation like where the shipment terms have not been clearly
1. Evaluation of suppliers defined, problems will definitely arise. Normally, the seller will opt
2. Materials requisition and receiving procedures to collect the amount from the buyer since the goods have already
3. Storage and inventory control system been shipped, but the buyer may refuse to pay because he/she has not
4. Shipment system and control yet received the goods.
5. Functions of support services
Functions of Support Services
Evaluation of Suppliers The operation plan defines and describes the functions of
The new basic entrepreneurial concept of quality management is that other support services relative to the acquisition, processing, and
control starts from the suppliers of raw materials. It used to be a shipment of goods to the customers. It also includes the important
common practice that a business starts to implement its control role of other support services such as the maintenance personnel and
system upon receipt of the materials. The suppliers of raw materials the security officers and staff.
must practice total quality management to minimize or avoid defects
or damages in the supplies. This concept extends from the suppliers Most businesses consist of three or four functional areas as follows:
of the business to the suppliers of the suppliers. The business must 1. Finance
conduct a critical evaluation of the suppliers of raw materials and 2. Marketing
establish harmonious working relationships with them to reduce the 3. Operation
threats they posed. 4. Human resources

Materials Requisition and Receiving Products

The procedures in requisitioning raw materials and other
manufacturing supplies and receiving them must be explained in the
operation plan. The person assigned to conduct inspection upon
receipt of the materials must be included.

This section covers the following areas:

1. Basis of receiving the raw materials ale
2. Comparison of the order and receipt
3. Quality of materials received

The basis of the receiving report is the purchase order of the

business. It must be signed by authorized personnel. After the
inspection, the person receiving the materials usually prepares the
receiving report.

Storage and Inventory Control System

The operation plan describes how the business stores the
finished goods and protects its inventory against possible theft and
losses. Goods that have been completed in the processing plant are
transferred to the warehouse or storeroom.

This section deals with the following:

1. Owning or renting a warehouse
2. Management of the warehouse
3. Procedures in the transfer of goods. 4. Control of inventory in the
warehouse

Under the just-in-time manufacturing system, also known as JIT

production system, storage and warehousing are eliminated because
only actual orders are produced at the exact required time. The JIT
system also eliminates wastage of expired products and requires less
capital since only essential stocks are ordered.

Shipment System and Control

The basis of sales invoice and other shipment documents
are the purchase order received from the customers. The sales
contract and shipping documents must be properly approved before
the product is shipped to the customers.

This section covers the following:

1. Approval of shipping and sales documents
2. Terms of shipment for sale