LESSON 2: THE BUSINESS PALN CONTENTS (I):

Introduction, Executive Summary, and Proponents

Business Plan Introduction- It is written at a high level while not going into details. It serves as the “birds-
eye view” of your plan.

Business Concept- Should have the essence of the business in a short but powerful manner. Describes
key consumer problems it seeks to solve. Articulates how ideas applies to a market and provides a clear
direction when processing a business plan.

Business Model- A formula on how the business plans to make money out of business.

4 AREAS OF BUSINESS MODEL

1.) Raising revenue

2.) The cost of the enterprise products and other costs of doing business.

3.) Major investments of the enterprise.

4.) Financing the investment.

Introduction- It gives potential investors an overview with enough information about your prospective
business to, hopefully, get their interest. Its sets the tone of your plan.

Introduction- Should consist one to two pages outlining the business from a management perspective.

Business goals- show the long-term and future prospects of the enterprise. Composed of the vision,
mission, objectives, key results area, and performance indicators.

Objectives- Tell you precisely the way to get there.

- Back your goals, and cause you to be more economical.

- Usually go together with numbers and specific dates.

Goals- Tell you wherever you want to go.

- It increases your effectiveness.

- Usually represented in words.

THE BUINESS GOALS

1.) Specific goal setting

2.) Self- Efficacy

4.) Ambition

5.) Willingness to learn

6.) Adaptability and Flexibility

7.) Willingness to learn

8.) Interpersonal skills

Unit 1: Understanding the Concept of Entrepreneurship

LESSON 1.

Competencies- considered as the capability, capacity and ability of the learner in handling situations in
various areas in business operations such as in marketing, management, production, and finance.

Lesson 2: Core Competencies in Entrepreneurship

Core Competencies- defining characteristics that make a business or an individual stand out from the
competition.

3 general Conditions in Core Competencies

1. The activity must provide superior value or benefits to the consumer.

2. It should be difficult for a competitor to replicate.

3. It should be rare.

Core competence- something unique that a business has or can do strategically well.

Core Competencies of Entrepreneur

1. Entrepreneur as a missionary

2. Entrepreneurs are goal-driven

3. Entrepreneur as a marketing man 4. Entrepreneurs start small to big

Lesson 3: Relevance and Opportunities in Entrepreneurship

Entrepreneurship- can help the economy by providing jobs and employment opportunities to
filipinos.

Job Opportunities

1.) Advertising

2.) Marketing

3.) Public Relations

4.) Business Development

5.) Design

6.) E-commerce and Social Media

Unit 2: The Business Plan

Lesson 1: Definition, Purpose, and Market Need Identification

Business plan- can be written according to its purpose.

Business plan- can be written before or during the first few years of the enterprise. This is to guide the
entrepreneur on which strategies would be most beneficial for the enterprise to take.

Business plan- the blueprint of your proposed business.

FIVE REASONS WHY YOU SHOULD HAVE A BUSINESS PLAN:

1. To test the feasibility of your business idea

2. To give your new business the best chance of success

3. To secure funding

4. To make business planning more effective

5. To attract investors
THREE FACTORS OF A GOOD BUSINESS PLAN:

1. It’s realistic

2. It’s specific

3. It’s followed through

Realistic business plan- accounts for the feasibility of implementation.

FOUR-STEP METHOD IN IDENTIFYING CUSTOMER NEEDS:

1. Gather Raw Data- the primary step is to collect information from the customers.

THREE WAYS TO GATHER DATA:

Interviews- Are one-on-one conferences with potential customers. Oftentimes they happen within the
customer’s own surroundings, as they're more comfortable there and there's an opportunity to check a
problem in action.

Focus Groups- Are like enlarged interviews. They involve about eight to twelve customers. The group is
being led by an interviewer.

Observation- Can either be passive, where one merely watches a customer work in their natural
surroundings.

2. Interpreting Data- After the interview, it's necessary to translate the obscure statements of the
customers into a helpful list of needs.

3. Organizing the Data- After interpreting the information gathered, organize them.

Kano technique- In the 1980s, professor Noriaki Kano developed a categorization system known as ____.

*Attractive Quality- When the product qualities are met, they provide satisfaction, however, once
they aren't met they do not cause discontentment. For instance, a backpack features a separate
compartment for a laptop computer, while other backpacks don’t. It is nice to have that feature, but its
absence does not lead to discontentment on the product.

*One-Dimensional Quality- When the qualities are met they supply satisfaction, and when they

aren't met they produce discontentment. For instance, once the shoulder straps on a backpack are
cushioned, they provide comfort, however, once not cushioned they're painful.

* Must-Be Quality- These product qualities are assumed to be met, and they cause discontentment
when they aren't met. For instance. backpacks are expected to be able to hold books.
 *Indifferent Quality- These qualities are neither sensible nor dangerous, and they don't increase nor
decrease customer satisfaction once met or not met. For instance, backpacks have a lock to secure the
bag. With or without it, it will not affect the satisfaction of the customer.

*Reverse Quality- These qualities cause either satisfaction or discontentment once met, however,
it's customer dependent. For instance, backpacks with plenty of compartments and pouches. Some
customers like the wealth of storage choices these spaces offer, and different customers actively dislike
how excessive or unmanageable those same areas are.

4. Reflect the Process- The final step in the customer needs Identification method is to reflect on what
has been done.

LESSON 2: THE BUSINESS PLAN CONTENTS (I): INTRODUCTION, EXECUTIVE SUMMARY, AND
PROPONENTS

Business concept- should have the essence of the business in a short but powerful

manner. It emphasizes the value of the product to be offered to the target customers who

would most likely buy it.

Business model- A formula on how the business plans to make money out of business.

Business goals- show the long-term and future prospects of the enterprise. It is composed of the vision,
mission, objectives, key results area, and performance indicators.

Goals- tell you wherever you want to go.

Objectives- tell you precisely the way to get there.

Goals- will increase your effectiveness.

Objectives- back your goals, and cause you to be more economical.

Goals- are usually represented in words.

Objectives- usually go together with numbers and specific dates.

Executive summary- summarizes the necessary details of the business plan for its readers. It is
timesaving for readers, for they are able to get the gist of the business plan.

startup business- For a ____ generally, one of the main goals of the business plan is to persuade banks,
investors, or venture capitalists to take a position in your business.

A TYPICAL EXECUTIVE SUMMARY FOR A STARTUP BUSINESS INCLUDES THE SUBSEQUENT SECTIONS:

●The business opportunity - It describes the needs of the target market.

● The target market - You need to describe your market based on the analysis that you will conduct.

● Business model - You need to describe and think of products or services and justify in what way it will
make it appealing to your target market.

● Marketing and sales strategy - You need to have a brief outline of your marketing strategy for your
products or services that you will offer.

● The competition - Describe your competition and your strategy for getting market share. You will also
identify your competitive advantage.

● Financial analysis - Summarize the financial statement together with projections for a minimum of
three years.

● Owners/Staff - You need to describe the owners and also the key employees and the experience they
convey to the venture.

● Implementation plan - As an entrepreneur, you need to define the schedule for taking your business
from the planning stage to its formal opening.

A TYPICAL EXECUTIVE SUMMARY OUTLINE FOR AN ESTABLISHED BUSINESS INCLUDES:

●Mission Statement – It describes what your company does and indicates the company’s core values and
business philosophy.

● Company Information – It contains a brief history of the company. It describes and introduces the
products and/or services, the place and the year it was formed, the owner/s and its key employees,
substantial data such as the number of employees, and business locations.

● Business Highlights – It presents a quick glance of the evolution of the business - how it has grown,
including profitability, increases in market share, and the number of customers served.

● Financial Summary – It contains a brief financial summary if the purpose of the business plan is for
expansion and network growth.

● Future goals – It describes the goals and future plans for the business. If the intention of the business
plan is to seek financing, it explains how these additional funds will be used to expand the business and/
or increase profits.

THE BUSINESS PROPONENTS

FOUR (4) TYPES OF STAKEHOLDERS:

Resource Mobilizers- They are the investors who are willing to take a position within the business. They
are the ones who will share in the capital of the business.
Technology Providers and Applicator- They are the ones who can think about the technologies that the
business needs. They are also the ones who can analyze if the budget is enough to make use of
technologies and if there's enough funds that they can use to acquire it.

Government and Top Management- These leaders will lead their members. However, having leaders
doesn’t mean that other members can’t participate. In this part, they will be able to formulate different
ideas and thoughts which will improve the business.

Operations and Support Team- These are members that will create the main product, Others will work
for the implementation of the business and might operate the institution.

LESSON 3: THE BUSINESS PLAN CONTENTS (II): TARGET CUSTOMERS, VALUE PROPOSITION, MARKET,
AND PRODUCT OFFERING

Target market- refers to a selected and well-defined client segment among the businesses’ serviceable
market. This market is whom the business wants to sell its product and services and direct its
promotional efforts.

Value proposition- refers to the worth an organization guarantees to deliver to customers should they
prefer to obtain their product. May be presented as a business or promotion statement.

LESSON 4: THE BUSINESS PLAN CONTENTS (III): ENTERPRISE STRATEGY, FINANCIAL FORECASTING,
COMPLIANCE, AND CAPITAL STRUCTURE

Enterprise strategy- a set of choices and actions geared toward gaining a sustainable competitive
advantage.

Process of enterprise delivery system

*Input- wherein the resources are mobilized

*throughput- where the inputs are converted into output

*outputs & *marketed- are then ____ to the customers (in case of goods) or experienced by the
customers (in case of services).

*Outcome- Customer satisfaction level, profits generated, and the performance of people from the
transactions will be the ____ of the enterprise delivery system.

AT LEAST THREE BASIC REPORTS OR PROJECTIONS USED IN A BUSINESS PLAN:

Balance sheet- shows the financial position of the enterprise as of the given period of time. It reflects
the total assets, liabilities, shareholders, and earnings preserved to fund future operations or to serve as
funding for expansion. It also indicates the money health of a business.
Income statement- shows the revenues, cost of goods sold, operating expenses, other income and
expenses, financing costs, income taxes, and bottom-line figures.

Cash Flow Statement- It is a projection of money receipts and expense payments. It shows how and
when money flows through the business.

FORMS OF CAPITAL STRUCTURE

Equity capital- This form of capital refers to any money put up and owned by the shareholders.

● Contributed capital - It is the money that was originally invested in the business for shares of stock or
ownership in return.

● Retained capital - These are profits from previous years that have been secured by the business and
used for fund growth, acquisitions, or expansion.

Debt capital- This form of capital refers to any borrowed money that is currently at work in the business.

● Long-term bonds - It is generally considered one the safest type because the business will have several
years to pay the principal while paying the interest only in a short period of time until the loan matures.

● Vendor financing - It happens once a company sells a product before having to pay their vendor. This
could dramatically increase the company's return on equity while not costing the business any upfront.

● Policyholder float financing - In the case of insurance firms, this often refers to cash that does not
belong to the business; however, it earns an investment until it's an insurance claim has been made.