Cesocsci 4

The entrepreneurial mind

MODULE 4 those goods in small quantities to end
BUILDING BUSINESS MODELS consumers
4. Franchise - A franchise can be a
manufacturer, distributor or retailer. It is a
“The more you drive positive change, the more method distributing products or services
enhanced your business model." -Anand involving a franchisor. A franchisor
Mahindra provides access to his business' proprietary
knowledge, processes, business system
and a brand's trademark or trade name in
BUSINESS MODEL order to let the franchisee to sell a product
or provide a service under his business's
 Peter Drucker: "a business model is
name.
supposed to answer who your customer is,
5. Brick-and-mortar - It is a model that refers
what value you can create/add for the
to the old-fashioned street-side business
customer and how you can do that at
that sells products and services to its
reasonable costs".
customers face-to-face in an office or store
 defines the foundation of its company's
that the business owns or rents.
core value proposition, targeting
6. Bricks-and-clicks - It is a model where a
customers, key resources, and assumed
company combines its online and a
revenue streams. - Serrano
physical presence. Customers may place
 offers a framework for success and
their orders online and then pick up the
overcoming challenges.
products from the physical stores. This
model provides the advantage of flexibility
because it can show its products to
DIFFERENT TYPES OF BUSINESS MODELS customers who live in places where brick-
TRADITIONAL BUSINESS MODELS: and-mortar stores are not present.
7. Direct Sales - In this model, products are
1. Manufacturer - A manufacturer is a person directly sold to the customers. Selling
or a registered company which makes could be in the form of a face-to-face
finished products from raw materials in an conversation or small gathering.
effort to make a profit. The goods are later 8. High Touch - This model uses a lot of
distributed to wholesalers and retailers human interaction and involvement in
who then sell them directly to customers. order to the experience highly
2. Distributor-A distributor is an entity or a personalized. This type of business
company that purchases noncompeting operates on trust and credibility to earn
products or product lines stores them in revenues for the company.
warehouses, and resells them to retailers 9. Family-owned - This is a family that is
or directly to the customers. owned and operated by a family. The
3. Retailer - A retailer is a person or business decision making is controlled by family
that purchases goods from the wholesaler members.
or directly from the manufacturer.
Retailers normally do not produce their MODERN BUSINESS MODELS:
own items. They purchase goods to sell 1. Nickel-and-dime - This model makes use
of the lowest price strategy in selling
basic product or service to the
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customers. Since the basic price is low, 8. Data Licensing / Data Selling - The
additional charges for the other perks Internet has given rise to the importance
and services that are offered are of data. Data is the major element in the
required. web technology where companies need
2. Freemium - This model is a combination vital information to perform its
of free and paid services normally used operations and gain profit.
by tech companies in the Software as a 9. Agency-Based - This is a partner
Service (SaaS) or apps business model. company that has specialization in doing
Usually, the basic services are free but non-core business activities such as
for a limited time or with limited advertising, digital marketing, PR, even
features. janitorial and security. Usually,
3. E-Commerce - This model is an businesses that has no internal know-
upgradation of the old-style brick-and- how hire agencies to acquire a
mortar business model. It focuses on customizable solution for their needs.
buying and selling of goods or services 10. Affiliate Marketing - This is a
creating a web-store using the internet. commission-based model where
The transactions of transfer of money companies make profit by promoting a
and data are executed via the Internet. partner's product and convince its
4. Subscription - This model offers a long- followers and users to buy the same. In
term contract to customers by paying a return, the affiliate gains a commission
fixed amount every month or year. The for every sales opportunity it referred to
company needs to provide enough value their vendor companies. The affiliate
to its customers for repeat purchases by website oftentimes provides product
visiting the website over and over again. review.
5. Aggregator- This is a network model; the 11. Dropshipping - In a drop-shipping
company acts as a middleman between business, the owner has no ownership of
two individual parties. Under this the product or hold any inventory but he
business model, most companies provide has an E-store. He has many different
information and sources on a single suppliers/ wholesalers to sell their
industry. The company sells its own product on the website. When an order
brand by creating value for both demand is placed on a business owner's website,
and supply side. It makes profit by the partner sellers then deliver the
through commissions. products directly to the customer.
6. Online Marketplace - In the online 12. Network Marketing - Often called multi-
marketplace, there is a collection of level marketing, this model works on
different sellers into one platform. These direct marketing and direct selling
sellers compete with each other to philosophy. There are no retail shops
deliver similar product/service at here but the offerings are sold to the
competitive prices. target market directly by the
7. Hidden Revenue - In this model the participants. The more people that
company offers its services for free. The become part of the pyramid structure,
company earns revenue streams from more money are gained by selling more
advertisements which are paid for by goods and getting more people on
identified sponsors when information is board. This is a commission-based model
shared.
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The entrepreneurial mind
where participants earn income through project is completed. Mostly
selling and recruitment of members. accountants, lawyers, educators and
13. Crowdsourcing - This is a model that businessmen form their own consulting
solicits intellectual information of users companies.
on what value-added concepts be 18. Social Enterprise - This model aims to
inputted in the product and or service put up a business more for creating a
offering. Here there is an open call for positive change but with profit. The
contributions to help solve the problem. profit though is intended to be used for
The contributor of the solution is given humanitarian works to improve human
monetary or re rewards. living conditions.
14. Blockchain- This is a digital ledger that is
irreversible and decentralized. No one
owns and monitors this digital database THE BUSINESS MODEL CANVAS
but anyone can contribute to it. This
model works on peer-to-peer  Alexander Osterwalder “Business Model
interactions and document all on a Ontology” (Earlier book)
digital decentralized ledger.  consist of nine segments for its building
15. Low Touch - In this model there is blocks.
minimum human assistance or  This business model can be written in a
intervention in selling a product or one-page canvas.
service. There is no need to keep a big  Later on, Osterwalder wrote a come
salesforce although companies may comprehensive description of this
focus on improving technology to further business model in his bestselling book
lessen human involvement and make the “Business Model Generation".
customer experience better.  Every block describes the factor that
16. Razor and Blade - It is a business model a startup business needs to study. The
in which one item is sold at a low price thoughts and ideas of the entrepreneur
or even given for free in order to are kept intact and focused although he
intensify the sales of a complementary may modify each block as the need
good, such as consumable supplies. A arises.
good example is the Razor that is sold at
a low price and its partner, the blade is
sold at a premium price. The same
situation holds in a printer and cartridge.
This model is advisable if the business
has a loyal customer base and has the
ability to create some sort of lock-in
situation with customers.
17. Consulting - The consulting business is
composed of experienced and qualified
professionals that offers services based
on their line of expertise. Most
consulting firms charge their clients by
the number of hours they have rendered
service or a percentage of share once a
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The entrepreneurial mind
forming awareness for their shared
industry, to gain new users.
3. Joint-ventures - This is when two
businesses because of their mutual
agreed to for a completely different
company. A new market or a new
geographic area could be the reasons for
combining their resources in a joint
venture.
FOUR MAJOR PARTS OF THE BUSINESS 4. Buyer-supplier relationships - These are
CANVAS MODEL: the most usual type of partnerships in
businesses. Such relationships make
1. Infrastructure certain that there will be a dependable
 Key partners spring of supplies coming in. On the part
 Key activities of the supplier this means a stable
 Key resources established customer for their product.
2. Offering
 Value proposition
3. Customers
KEY ACTIVITIES
 Customer segments
-key activities are mostly a bridge between the
 Channels
value proposition and the customer segment,
 Customer relationships
certainly, the entrepreneur has to consider his
4. Finance
channels and customer relationships when
 Cost structure
coming up with the key activities for the business
 Revenue streams
model.

CATEGORIES OF KEY ACTIVITIES:

KEY PARTNERS
-are the network of suppliers and partners that 1. Marketing - Adding value by promoting
may provide the business model more effective. products and/or services such as
The entrepreneur could partner with other advertising a product to create
business, governmental, or non-consumer awareness and hence demand.
entities that can help the business model works. 2. Sales - This concerns selling a product
and/or service. For instance, personal
FOUR DIFFERENT TYPES OF PARTNERSHIPS: selling includes creating customer
relationships, discovering solutions to
1. Strategic alliances - This partnership is the customer's problem and closing
an arrangement between non- sales.
competitors to help each other do an 3. Design - This is about forming designs of
equally advantageous task but retaining various items. For example, an apparel
their independence. company creates design of its lines of
2. Coopetition- This partnership is an clothing for presentation to the
agreement between competitors to help outsourced manufacturers.
share the risk that these companies may
take. Companies could be partners in
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The entrepreneurial mind
4. Development - This is adding value 2. Intellectual - These are non-physical,
through developing products and intangible resources such as brand,
services. In the case of software patents, proprietary knowledge,
company, it develops a software product copyrights, and even partnerships.
which could probably be customized Customer lists, customer knowledge, and
based on the need of the customer. even the company's own people, are
5. Operations - The manufacturing of aIso form of intellectual resources.
products and delivery of services. 3. Human-Employees are the biggest and
Designing, manufacturing, and delivering most vital resources of any company but
a product in big quantities and certainly are often overlooked. In service-oriented
of highest quality are some of the companies which require great deal of
activities under this. Most companies are creativity and extensive knowledge,
under this activity, particularly because a human resource is very vital.
lot of business models are in 4. Financial - All businesses have key
manufacturing. resources in finance; however, some will
6. Distribution - This is about reaching out have stronger financial resources
to the customers to sell to them and compared to others. Cash, lines of credit
delivering the items to them. To and the ability to have stock option plans
illustrate, a repair shop provides for employees are some examples of
warranty services of an item bought by a financial resources.
customer.
7. Customer experience - Customer
service, consulting and customer support CUSTOMER VALUE PROPOSITION
are some of the activities involve here. -Customer value proposition (CVP) is a business's
way of generating value in their product or
service when targeting potential customers. A
KEY RESOURCES value proposition is a statement consisting of the
-Key resources describes the most important reason/s someone should do business with the
assets required to make a business model work. company. This is computed through adding all
These are the resources that allow an enterprise the benefits that the product could provide to
to create and offer value proposition, reach the customers. CVP is a description of the user's
target markets, maintain good relationships with experiences that he will come to realize upon
customer segments, and gain revenues. buying and using of a product.

FOUR CATEGORIES OF RESOURCES:

FACTORS CONSIDERED IN THE DEVELOPMENT
1. Physical - These are physical assets
OF THE CUSTOMER VALUE PROPOSITION:
which are considered tangible resources
that a company make use of to form its 1. Functional value - The product and or
value proposition. These could include service offers the solution to a parti
equipment, machines, inventory, problem. Said solution is convenient,
buildings, vehicles, manufacturing plants better version, easier to use and more
and distribution networks that allow the complete compared to others.
business to function. 2. Emotional value - The product and or
service is pleasant to look at or
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The entrepreneurial mind
attractive. The customer is fond of this relative to the next best
offering because of sentimental reasons, alternative.
based from tradition or the advice of  Answers the customer question
people attached to the customer. “why should our firm purchase
3. Economic value - The product and or your offering instead of your
service offers a financial advantage, competitors?”
promotes energy conservation, saves  Requires Knowledge of own
time or is innovative. market offering and next best
4. Symbolic value - For the customer the alternative
product and or service is valuable  Has the potential pitfall:
because of a certain type of status given Value presumption
to the customer. This status can be a 3. Resonating Focus - The company making
social responsibility orientation or based use of this CVP identifies the one or two
from the brand. points of difference between the its
solution and its competitors that provide
the best value to the target customers.
TYPES OF CVPS: Companies that use resonating focus
value propositions are able to create
1. All Benefits-The company in this type of
tailored-fit value propositions for
CVP just list all the benefits or solutions
different customer segments. The
that a product and/or service offering
elements of value that are important
can deliver and serve to target
may vary from customer to customer,
customers. The more benefits that can
hence tailor-fitting is necessary.
be listed down, the better.
 Consists of All benefits
customers receive from a market
CUSTOMER RELATIONSHIPS
offering
- Customer relationships are the types of
 Answers the customer question
relationship a company forms with its particular
"why should our firm purchase
customer segments. These relationships are
your offering?"
essential in order to gain customers, keep them
 Requires Knowledge of own
and grow sales with them.
market offering
 Has the potential pitfall:
TYPES OF CUSTOMER RELATIONSHIPS:
Benefit assertion.
2. Favorable Points of Difference - The 1. Personal assistance - Founded on human
company using this CVP tries to collaboration, the customer can
differentiate their solution by conveying communicate with a real salesperson to
its point of difference compared to the provide help during and after the sales
customers next-best alternative. Here, process. Ways of communication may
there must be a complete understand include onsite at the point of sale, using
customer's requirements and call centers and even emails, among
preferences, and what it is worth to others.
fulfill them. 2. Dedicated personal assistance - This is
 Consists of all favorable points of the deepest and most intimate type of
difference a market offering has relationship that involves assigning a
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The entrepreneurial mind
salesperson to an individual customer. juice, soft drinks, paperback romances,
This kind of relationship usually develops and the like are offered to every
over an extended period of time. customer. The customer value
3. Self-service - Basically there is no direct proposition for this segment must be for
relationship that exists here, although all a bi number of people who has similar
the essential things to assist customers problem or need requirements.
help themselves are given 2. Niche - This market speaks of a
4. Automated services - This is a customer segment with very distinct
combination of customer self-service characteristics and extremely specific
and automated processes. For instance, needs. This segment necessitates a
automated services are able to identify highly customized product, custom made
individual customers and their to fit their needs. Hence, the customer
characteristics, hence they can be given value proposition for this segment
information about their orders. should be strictly defined based on the
5. Communities - User communities can be preferences of this specific customer
used by companies to be closer and segment. This type of market is common
more connected with their current and amongst automobile parts suppliers who
potential customers. It is a trend now to are really reliant on automobile
keep online communities to exchange manufacturers for sale of their products.
information and help solve each other's 3. Segmented - There are businesses that
problems. select to offer products and/or services
6. Co-creation - Basically, this is an to customer segments that have very
extension of the traditional customer- small differences in their need
vendor relationship. Here customers requirements. In this segment, the
have the chance to co-create value with company forms various customer value
the company such as in designing and propositions based on these small
innovating products. Writing reviews and differences in the customer segments. In
soliciting ideas from customers are retail banking for instance, the
examples of engaging customers to distinction lies on the net worth of
become co-creators. customers, which is small yet substantial.
4. Diversified - Some companies often
select differentiated customer segments.
CUSTOMER SEGMENTS
Basically, these customer segments have
- Shared needs, behaviors and other traits can be
very diverse needs and wants. Although
the bases for customer segmentation. A
customer segment refers to demographics such there may be some overlaps among the
as age, ethnicity, profession and/or gender; or profiles of customers, the company still
psychographic factors which include spending see it is profitable to invest in attracting
behavior, interests, and motivations. A company these customers. One of the diversified
may select a single group or several groups to companies in the Philippines is San
target with its products and services. Miguel Corporation.
TYPES OF CUSTOMER SEGMENTS: 5. Multi-sided platforms - This type of
customer segment is used when
1. Mass - This is basically an unsegmented
customer segments are reliant with each
market in which products with mass
other, which makes it a necessity to
appeal products such as aspirin, orange
serve both sides of the balance.
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The entrepreneurial mind
or salesforce. Owning the channel could
mean added costs but may provide a
CHANNELS
direct and strong relationship with the
-Channels are the touch points through which a
customer and could give higher profit
company communicates with its target
margins.
customers. Hence, they play a big role in defining
2. Indirect channel - Also known as partner
the customer experience and providing value. An
channels, the company makes use of
entrepreneur should understand which channel
Intermediary and places its products or
is appropriate to reach his target consumers.
makes the service obtainable at the
THE FIVE PHASES THAT A CHANNEL MAY PASS partner store. Wholesalers are
THROUGH BUT IT MAY COVER MORE THAN ONE considered as partner channels.
OF THESE PHASES AT A TIME:

1. Awareness - This is the marketing and

VALUE PROPOSITION CANVAS
advertising phase. Said phase entails
educating the target customers about  Alexander Osterwalder-aim is to
the features of the products and/or guarantee proper fit of the product and
services and how these offerings shall be the market.
of value to them.  Makes certain that a product and/or
2. Evaluation - In this phase, the customer service takes into consideration the
evaluates, read about or uses the values and needs of the customers.
product or avail of the service in order to  The canvas appears to be a detailed
formulate an honest opinion about it. relationship of the customer segments
3. Purchase - This phase is the actual sales and value propositions.
process. Here the customers buy their  This canvas can be a tool also to upgrade
chosen product and/or service. The sales a product and/or service offering or to
process represents the exchange of a develop an entirely new offering.
particular product and/or service for  The value proposition canvas consists of
money. two building blocks namely the
4. Delivery - Also known as the fulfillment customer's profile and a company's
stage of the process, this is the phase value proposition.
when the promised value proposition
has reached the customers. Simply, the
way the offerings shall reach the
customers to solve their problems.
5. After Sales - This phase centers in giving
customer care and support after
purchase. It offers the customers to call
when they have a problem or series
about the product.

TYPES OF DIFFERENT CHANNELS: CUSTOMER PROFILE

1. Direct channels- are those that the -customer profile points to the customer
entrepreneur owns or has control over. segment that the company shall serve its
This could be his physical store, website, product and/or service offering. A customer

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The entrepreneurial mind
profile should be created for each customer 4. Unexpected gains - These gains are the
segment, as each segment has distinct gains, potential benefits of the product and/or
pains and jobs. service for which the customer is
 Customer archetypes unaware until these are introduced to
-also known as personas are those dry him. Although these ideas and
demographic portrayals of customers innovations are not articulated by the
transformed into living, breathing people customer, they are able to transform the
which the audience can comprehend. customer's experience with a product
-an idea of Steve Blank which he and/or service. A touch screen capability
popularized in his Lean Launchpad. of a Smartphone is a type of an
unexpected gain for customers.

CUSTOMER GAINS
-Customer gains include all the expectations and
CUSTOMER PAINS
needs of customers, things that may delight
-Customer pains are situations which either
them and other stuffs that may intensify the
avoid the customer from getting a job done or
possibility of these customers embracing a value
the negative experiences, emotions and risks
proposition.
that the customer experiences before, during or
TYPES CUSTOMER GAINS:
after a job.
1. Required gains - When buying a product
or being provided by a service, these are
PAINS INCLUDES THE FOLLOWING:
the very basic expectations by the
customers. An individual buying a 1. Productivity pains - These pains include
Smartphone has the least expectation the inefficiency of the businesses that a
that his new bought phone can allow customer experiences. Majority of
him to make and receive phone calls. customers practice time management
2. Expected gains - These gains are beyond that they felt annoyed when additional
the basic ones, but even these are not steps would occur in the buying process.
present in the product and/or service, 2. Support pains - These are pains felt by a
said offering can still provide its basic customer when he is not assisted during
purpose. Hence, for a Smartphone, it is the buying process.
expected that it should be visually 3. Financial pains -These are pains that
attractive and fashionable. involve money in particular that often a
3. Desired gains - These gains are the customer spends too much for a product
customer's preference when it comes to and/or service when his intention really
product and/or service. These are the is to spend less.
most sought-after and cherished gains by 4. Process pains - These pains those that
the customer. Obtaining these gains can create friction to buyers because of the
result to the complete satisfaction of the substandard processes of the business.
customers. In the case of Smartphone,
having no trouble in the synching the
phone with other gadgets is a desired
gain of any user

CUSTOMER JOBS/JOBS-TO-BE-DONE
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The entrepreneurial mind
-Customer jobs describe the functional, social b. Co-creator of value - These are
and emotional tasks customers are trying to do, jobs for which a customer has a
challenges they are attempting to resolve and direct hand in the manufacture
needs they desire to satisfy in their personal and of the product with the
professional lives. company. Such jobs include
-Known also as jobs-to-be-done (JTBD) shifts the providing ideas for product
focus from a hypothetical or aggregate user to design, product testing and
what actual users want to accomplish by using giving product and/or service
the product. Here, the perspective must be reviews online.
taken from the angle of the customer to c. Transferor of value - These are
understand him fully. jobs at the end of the product
use such as disposal of product
TYPES OF JOBS:
trash or giving the ownership of
1. Functional jobs -These are the regular the product to another person
and particular jobs that a customer is because it has no value anymore
trying to do and is working towards. to the original owner.
These are easy and simple things like
cooking a menu, finishing an essay for
VALUE PROPOSITION
the English assignment, eating balance
diet and other similar ones. GAIN CREATORS
2. Social jobs - These consist of the -Gain creators explicitly outline how the
manners a customer desires to reflect his products and services may create customer gains
image in a social environment. Some and offer customer added value. An
examples include fitting in with a group entrepreneur may Tom benefits that a customer
of friends or praising a co-employee in supposes, desires, or may came as a surprise.
his sales presentation. Gain creators may include functional utility,
3. Personal/ emotional jobs - These social gains, positive emotions, and cost savings.
include how a customer works towards
feeling a certain way. Some people feel PAIN RELIEVERS
they can rush from a tough task and then -Pain relievers explicitly outline how the
do another task after like having a gym products and/or services lighten, avoid or solve
practice before dinner time. the particular customer pains. An entrepreneur
4. Supporting jobs - Often customers also must provide details on how his offering of
purchase value, hence doing a product and/or service could lessen or
supporting task. completely eradicate the annoyance of his
customers before, while, and after they are
The three roles of customers that may trying to get a job done.
assist in supporting jobs:
a. Buyer of value - This task is any
purchase of value that may PRODUCTS AND SERVICES
cover from evaluating choices at -These are the products and/or services which
hand up to paying for the create gain and relieve pain and built around the
product that had been chosen. value proposition

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The entrepreneurial mind
-These offerings may help customers obtain a an entrepreneur wants to serve has a set
functional, social, or emotional job done or just of problems that require solving. In this
satisfy the basic needs box, the entrepreneur shall list the three
high priority problems that the customer
-could be in the form of tangible, digital/virtual,
segment is experiencing. This is to
intangible or financial which are essential to the
ensure that the right product and/or
customers.
service shall be met based on the
existing need of the customer segment
being served.
THE LEAN CANVAS: A BUSINESS 2. Solution - The next step to look for the
MODEL CANVAS ALTERNATIVE effective solution. However, this is not
easy task to do. According to Steve
 proposed by Ash Maurya
Blanks, the Godfather of Lean Startup,
 developed version of the Business Model
the entrepreneur needs to "get out of
Generation
the building". The phrase was coined by
 outlines a more problem-focused
Blanks to mean going out in the streets
approach and appropriate to use by
and interview the customer segment.
small entrepreneurs especially those
The customer should be asked questions
creating startup businesses. The focus is
in order to learn from them regarding
more on customers' needs, on
their problems. (Solutions must be
actionable metrics and offer a fast idea-
concisely written and specific.)
to-product transformation.
3. Value Proposition - This block contains a
 The Lean Canvas is also primarily meant
marketable promise to the target user
for entrepreneurs and not the
that the business will solve their
customers, consultants, investors or
problem. This is similar with the business
advisors.
canvas model.
4. Unfair Advantage - A startup should
recognize if it has the competitive
advantage that cannot be copied and
cannot be bought or it has an unfair
advantage over others.
5. Customer segments - This is similar with
the business canvas model. The problem
and the customer segments must be
connected.
6. Channels- These are the ways to reach
the customer segments. Channels, which
are free as well as paid, can be used to
reach your customer directly.
7. Revenue streams - This is the money
ELEMENTS OF THE LEAN CANVAS MODEL matter of the business just like in
business model canvas. It is common for
1. Problem - It is important to understand startups to lower their cost or even offer
the problem first that the business will it to free in the beginning to gain
address. Every customer segment that attraction. Getting people to sign up for
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The entrepreneurial mind
something for free is not the same than 1. Price - Majority of the customers look at
asking them to pay as they are more price when buying a product or availing
interested in free products. of a service. It is a reality that every
8. Cost structure - These are the customer purchases within his budget
operational costs that the business limit. Not unless a product and/or
needs to pay in bringing the product to service is exceptional customers may be
the market such as salaries, cost of the compelled to spend outside his
materials, cost of maintenance. The limitation.
complete variable costs and fixed costs 2. Experience - These days, almost
are to be listed here. everyone is busy doing their activities.
9. Key Metrics - All businesses, whether big Most customers wanted to buy things
or small have some metrics with which that are readily available. The market
to monitor their performance. The today contains so many alternatives to
metrics consist of the assortment of choose from. Hence, it is essential to
products and/or services the business provide a worthwhile experience in
wants to deliver. For a startup business addition to good product and/or service
though, one metric is good enough and quality. This kind of shopping experience
then just build on it. It is important that may create loyal customers.
the correct metric is recognized. 3. Design - The design of the product must
always be appealing to customers.
4. Functionality - It is always expected by
MODULE 5 the customer that the product he is
CUSTOMERS AND MARKETS buying can serve its purpose. Simply all
the functionalities that are expected of
the product should be present.
"Service, in short, is not what you do, but who 5. Convenience - The product and/or
you are. It's a way of living that you need to service must be always readily available
bring to everything you do if you're to bring it to for the customer, otherwise, he will not
your customer interactions."- Betsy Sanders buy the product and possibly look for an
alternative.
6. Reliability - The product should be
MARKET dependable and it should meet the
- is any place where manufacturers, distributors customer's requirements and
and retailers sell and consumers buy.
expectations every time he buys it.
7. Compatibility - The product should be
FACTORS THAT INFLUENCE THE CHANGES IN
well-matched with the other products
THE MARKETPALCE:
that the customer is already consuming.
 Economic situations
 Innovations
TYPES OF CUSTOMERS
 Lifestyles
 New fashion 1. The Potential Pandoy (Potential
customer) -In principle, Pandoy cannot
THINGS CUSTOMERS LOOK FOR WHEN BUYING:
be considered a customer yet. However,
he little bit of convincing and assistance

12
 Cesocsci 4
The entrepreneurial mind
to hopefully change into quickly making 1. Consumer or business - A product
him a paying customer. He may show and/or service may be intended for a
interest in the product and/or service business-to-business (B2B) or business-
offering y filling out a contact form, to-consumer (B2C) market.
signing up in a newsletter or asking a 2. Geographic - This is defining the target
question through live chat or personal market according to the place where
message. possible customers live or work, take
2. New Netnot (New customer)- is the vacation or do business.
fresh customer who has just bought 3. Demographic - The target market here is
something for the first time from a describing by means of age, gender,
business. income level, educational background,
3. Impulsive Icoy (Impulsive customer)- is a marital status and other areas of an
customer that make instant buying individual customer's life.
decision based on craving or whim 4. Psychographic - Psychographic
provided that the conditions are right. characteristics are based from the
He is highly influenced by his current intrinsic traits of a customer such as
mood when shopping. He needs not personality, lifestyle, social status, AIO
much convincing to buy for as long as he (activities, interests, opinions) and
wants to buy something with less steps. attitudes.
He is even less interested in value 5. Generation - A lot of businesses these
proposition. days define their target market based on
4. Discount Daboy (Discount customer)- is which generation they were born in,
a customer who never buys a product namely Baby Boomers, Gen X,
and/or avail of service on full price but Millennials and even Centennials.
only on a discounted rate. Said customer 6. Cohort - Some companies look for their
never shop for anything off-sale. target market using cohorts. A cohorts
5. Loyal Lando (Loyal customer)-Loyal a group of subjects who share a
Lando is a satisfied customer that keeps significant characteristic or typically
coming back to one's store for more subject who experienced a common
purchase. Lando is a good brand's event in a selected time period, such as
ambassador that can make birth graduation.
recommendation of a business to his 7. Life stage - Other businesses use the
family and friends, thus attracting a stage of life for target marketing
stream of new customers customer like whether infancy, childhood, adolescent,
him can help an entrepreneur grow his adulthood or old age.
business using word of mouth. 8. Behavioral - Another way of finding the
target market is Based on customer
TARGET MARKET
loyalty, occasion-based, consumer usage
-is a group of possible consumers or
and others.
organizational buyers to whom a company wants
to sell its products and/or services.

USER PERSONA
APPROACHES IN DESCRIBING THE PERFECT -persona is a short fictional profile of an ideal
CUSTOMER user or customer.

13
 Cesocsci 4
The entrepreneurial mind
of the company’s product and/or
-user persona includes a fictional name and service.
photo, important demographics, user needs and 3. Include end goals-The end goal is the
desires, goals, motivations, activities, pain points, encouraging factor that stimulates
and quotes. Except for the name and photo, all action. It provides the details on the
details are from real user data or customers that wants and needs of users that can be
have been served and market research or satisfied by using the product and/or
customers that the entrepreneur would like to service offering of a company. The end
reach. goals define the things the persona
wants or needs that have to be fulfilled.
STEPS TO CREATE USER PERSONAS
4. Include a scenario-An everyday life
1. Create a Header-The Header consists of scenario is a story that describes the
a fictitious name, a picture and a quote interaction of the user to a product
which sums up what is the most and/or service in a particular situation to
important to the persona that is related reach his end goals. The scenario details
to the product and/or service offering. the when, where, and how of the story
2. Include A Demographic Profile- the that happens. The scenario is normally
demographic profiles of the users are written form the data gathered from the
based from facts and user research angle of the persona and may describe
a. Personal background- The important details about the future.
personal background consists of
the age, gender, ethnicity,
education, persona group
(working moms, single
COSTUMER JOURNEY MAP
professionals, working students
and family status (single,  A most popular and favorite tool for
married with children and imagining the customer’s experiences
widowed).  is a representation of a typical
b. Professional background- The costumer’s experience over time instead
professional background of a snapshot. It is different from the
contains details like occupation, discussed customer persona. The
income level, and work emphasis of a persona is on the person,
experience. while a customer journey map highlights
c. User environment- The user their experience.
environment is the physical,  Most journey mapping format looks like
social, and technological context a timeline that consist of a series of user
of the user. actions. Then the timeline is elaborated
d. Psychographics- Psychographics containing thoughts and emotions to
contain facts, for example form a story. This story summarized and
attitudes, interests, motivations refined to create visualization. The map
and pain points. This profile helps to set where customers become
makes the entrepreneur frustrated on their way to buying and
understands the reasons for the beyond.
user’s behavior including the use

14
 Cesocsci 4
The entrepreneurial mind
KEY COMPONENTS OF A JOURNEY MAP a. Actions - These are the concrete
behaviors and steps engaged by
1. ACTOR-is the viewpoint of the journey
users. This
who is actually the persona or user.
element is not meant to be a
Coming from the data gathered, the
granular step-by-step record of
actors must be in relation with personas
every isolated interaction. Rather, it
and their respective actions. Hence,
is a story of the steps the actor
there must be one journey map for each
undertakes during that phase.
persona in order to create a solid and
b. Mindsets - These correspond to the
rich story that captures their particular
thoughts, questions, motivations and
journey.
information of the actor at various
2. SCENARIO + EXPECTATIONS-The
steps in the journey. Ideally, these
scenario is simply the situation which the
are customer exact words from
journey map talks about in relation to
research.
the actor's goals, needs, and
c. Emotions - They are drawn as
expectations.
distinct line across the journey
3. JOURNEY PHASES-are the various high-
phases. This line accurately indicates
level stages in the journey of an actor.
the emotional "ups" and "downs" of
These phases are responsible for the
the experience. This line gives the
information about actions, thoughts, and
idea of the related layer of emotion
emotions in the map. Obviously, for each
that the actor feels such as very
scenario there would be different
happy against unhappy.
phases. Each company should have data
in order to determine the various phases
for a particular scenario.
5. OPPORTUNITIES- are insights that are
a. An ecommerce scenario - Buying a
obtained from mapping. These
set of Bluetooth speakers may have
opportunities they can used to identify
discover, try, buy, use, seek support
the ways of optimizing the actor’s
phases.
experience. Insights and opportunities
b. A huge or expensive purchases - Test
are useful in getting knowledge from the
driving and buying a car may include
journey map in terms of:
stages such as engagement,
a. Needs to be completed with this
education, research, evaluation,
knowledge
justification.
b. Owner of respective
c. A business-to-business (B2B)
c. The biggest opportunities
scenario - Rolling out an internal tool
d. Ways of measuring
may consider the stages like
improvements as they are
purchase, adoption, retention,
implemented
expansion, advocacy.

4. Actions, Mindsets, and Emotions - These

include behaviors, thoughts, and feelings IMPORTANCE OF A CUSTOMER JOURNEY MAP
the actor has during the journey and that 1. Refocus a company with an incoming
are drawn within each of the journey perspective-With inbound marketing an
phases. entrepreneur may discover his
15
 Cesocsci 4
The entrepreneurial mind
customers. Inbound marketing also marketing, sales, and service, then it can
known as content marketing is creating be shared with the whole company.
blog posts, social media, infographics,
white papers, email newsletters, and
STEPS TO CRAFT A CUSTOMER JOURNEY MAP
other content that people actually want
to read. Customers are actually 1. Set Clear objectives for the map-an
interested and searching for this entrepreneur should know the goals he
content. It cashes the attention of is directing the map and the experiences
customers first and then later starts to it is based upon. In other words, he may
buy things that they have read about. create a buyer persona.
Through journey mapping, an 2. Profile personas and define their goals-
entrepreneur can understand what The next step is to make researches by
interest and help his customers about his getting valuable customer feedback
company and website as well as what using questionnaires and user testing.
drives them away. The company may Here only actual customers or prospects
construct the type of content which will are reached out to make feedbacks.
draw the attention of customers and Feedback must come to people who had
help to keep them. shown interest in buying the
2. Form a new target customer base-On entrepreneur’s products and/or services
the part of the entrepreneur, it is risky and those that have dealt with the
not to know fully the demographics and company already or plan to do so.
psychographics of his customers because 3. Emphasize the target customer
he will not also correctly realize his personas-The entrepreneur needs to
customer’s journey. It’s actually of time, narrow down his focus to one or two of
money and effort to target a broad those customer personas. For an
segment who shows interest in the entrepreneur drawing his first journey
company’s products and/or services. The map, the rule of thumb is to select the
needs and pain points of usual most common customer persona and
customers must be researched on. study the path he normally takes when
Journey mapping will actually provide a doing business with the company. A
good picture of the types of people who marketing dashboard may be created to
are trying to accomplish a goal with the make comparison of the different
entrepreneur’s company. personas that would fit in with the
3. Form a customer-focused mindset all journey map.
over the company--As a company 4. Write down all the touchpoints-
becomes bigger, it turns to be Touchpoints are those places in the
challenging to be as customer-focused website that customers may use to
like the customer service, support, and interact with the company. An
success teams. Most often, sales and entrepreneur must write down all the
marketing goals are no longer what the touchpoints his customers and prospects
customers want. Since, the journey map are presently using and those that they
outlines each single step of the customer must use based from research. This step
journey from initial attraction to post- is vital in creating a customer journey
purchase support that concerns map since the insights into what action

16
 Cesocsci 4
The entrepreneurial mind
his customers are doing are revealed journey map. It tries to create in
here. The touchpoints are tools that can one's mind the actions, thoughts,
help an entrepreneur understands the and emotions that customers
comfort and purposes of customer presently experience while
journeys. interacting with the entrepreneur's
a. Actions - An entrepreneur may company. This is best applied for
write down all the actions his continuously refining the customer
customers are doing as they journey.
interact with his brand or b. Day in the life - This type of
company. He may Google search customer map tries to create in
for the keywords or may click on one's mind the actions, thoughts,
an email sent to him. It is alright and emotions that customers
to have a long list of actions. presently experience when he
b. Emotions and motivations - participates on daily basis whether it
Every action that a customer includes the company or not. It
takes is triggered by an emotion. offers a wider viewpoint into the
Said emotion/s may change lives of the customer and their pain
based on which part of the points in real life. This is best applied
journey a customer is at. for fulfilling unmet customers' needs
Normally, what drives the before customers even know they
emotion of a customer is a pain exist.
point or problem. The c. Future state - This journey map is
knowledge on these emotions designed by an entrepreneur to
and motivations will give the imagine the actions, thoughts and
fitting content at the right time emotions of his customer's
so that there will be a smooth experience as the latter interacts
customer's emotional journey with his company in the future. The
through the entrepreneur's reference is the present experience
brand. though the plan heads towards what
c. Obstacles and pain points - Here the entrepreneur wants the
the road blocks that are customer journey to be. The best
preventing the customer to take application of this map is illustrating
the preferred action must be vision and planning a clear objective.
revealed. Cost is one of the d. Service blueprint - This journey map
prime problem. High shipping starts with the simple version of the
rates may cause a customer not above mentioned maps. The latter
to buy product even he so add further those factors in charge
desires it. Emphasizing these of providing the experience such as
possible difficulties in customer people, policies, technologies, and
journey may help lessen them. processes. This is best applied when
determining the main reasons of the
5. Identify the elements of the map to present customer journeys or
show determining the steps required to
a. Current state - This is most accomplish the preferred future
commonly used type of customer customer journeys.
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 Cesocsci 4
The entrepreneurial mind
6. Identify the resources on hand and and the aggregate revenue that these sales may
those that are still needed-the produce over the course of a year.
entrepreneur must emphasize all the
FOUR BROAD CATEGORIES OF MARKET SIZE:
resources that goes with the customer
experience. Hence it is necessary for the 1. Potential Available Market (PAM)- is the
entrepreneur to come up with the total possible value that represents the
inventory of resources he has on-hand global market of products and/or
and those resources he will be needing services sold over a definite timeframe
to improve customer's journey. For without any limits of geography and
instance, if the customer service does other factors. This assumes the 100%
not have the tools to appropriately market share.
follow up with customers after a service 2. Total Addressable Market (TAM)- is the
interaction, then the entrepreneur must potential value of product and/or service
invest on these resources. sold to a particular customer segment.
7. Experience the customer journey 3. Serviceable Available Market (SAM) -
himself-he must know the number of SAM is the subset customer of the total
people clicking his company's website addressable market (TAM) who can be
but never really make a purchase. This reached and ready to buy goods or
will make him decide on how he could services using a one revenue
better support customers. The results of stream/channel.
the analysis can confirm where customer 4. Serviceable Obtainable Market (SOM) -
needs are being unmet. With this a This is the subset of the SAM that will
valuable experience can be guaranteed realistically get to use a product and/or
and that customers are able to find avail of the service. This is the target
solutions to their problems through the market who the entrepreneur shall
entrepreneur’s company products primarily sell to. Here, there is much
and/or services. consideration to strategic development
8. Create the needed changes-The analysis of the market and the competitors'
of data can give the entrepreneur the actions.
idea on what his website must be. The
entrepreneur may create the applicable TWO MARKET SIZING APPROACHES
changes to his website to accomplish his 1. Top-down analysis
goals for the business. He may place 2. Bottom-up analysis
numerous distinct call-to-action links. He
may also write vivid and detailed TOP-DOWN
descriptions of each product to make its -This type of sizing is normally completed by
using demographics such as company size,
purpose and benefits clear to the
industry type, location, population, age, income
customers.
and others.
a. Multi-client research from publishers -
There are a lot of publishers on selling
MARKET SIZE products with different range underlying
-refers to the aggregate number of possible research and accuracy as The Freedonia
buyers of a product and/ or service in an industry Group, Packaged Facts, and Simba
Information. the entrepreneur decides

18
 Cesocsci 4
The entrepreneurial mind
to use this method he must get his -is more about a marketing spirit that was itself
information reliable sources which is the from traditional marketing practices. This type of
MarketResearch.com which consists of marketing for entre avoids many of the
those publishing brands mentioned fundamental principles of marketing are usually
above. an, and well-known companies.
b. Apparent consumption calculated from
- It makes use of new and non-traditional
government production and trade
markets practices that makes entrepreneurs
statistics - There are dependable
stand out from their competitors.
industry shipment/production statistics
and import/ export data for a given - emphasize the company greatest strengths
industry using sources such as while stressing their value to the customer.
Philippines Trade Data, Philippine
Statistics Authority, Foreign Trade
Statistics of the Philippines and even
Department of Trade and Industry.
c. A production census of leading suppliers
in markets with a concentrated supply MARKET STRATEGIES
base - When the supply base consists of
only few suppliers such that they are less 1. Relationship marketing - The emphasis
than ten (10), top-line demand estimates of this is on building a solid connection
can be established easily by adding all between the brand and the customer.
the sales or production of leading 2. Expeditionary marketing - This involves
manufacturers of the product being forming markets and creating innovative
studied. products. Here the entrepreneur's
company acts as a leader rather than a
follower.
BOTTOM-UP 3. One to one marketing - Here customers
-is only considered if there are no dependable are marketed to as individuals. All
sources of top-line demand present. However, if marketing efforts are tailor-fitted.
this approach can give a more dependable 4. Real time marketing -This makes use of
estimate though analysis of product the power of technology to interrelate
consumption in relation to a direct indicator (the with a customer in an actual time.
product being consumed) then this can be 5. Viral marketing - It places marketing
useful. messages on the Internet like Facebook
-more time consuming and Instagram so they can be shared and
-It is also sensitive on the face of small expanded on by customers.
assumptions that falls through the analysis. In 6. Digital marketing - This considers
this method, an entrepreneur may be able to leveraging the power of Internet tools
make extrapolation until he reaches an like e-mail and social networking to
applicable scale. back-up marketing efforts.

6 ELEMENTS OF ENTREPRENEURIAL MARKETING

ENTREPRENEURSHIP MARKETING BY MICHAEL H. MORRIS

19
 Cesocsci 4
The entrepreneurial mind
1. Customer intensity - This feature PERSONAL BRAND
concentrates on the enthusiasm, - is the one that differentiates an entrepreneur
passion, zeal, and belief in marketing from the rest of his competitors. This type of
that makes the company successful. It is branding forms a lasting impression on the
believed that a customer-intensity minds of the customers about the quality of his
component makes stronger the primary product and/or service. Actually, this convincing
values of the company and the passion personal brand draws the target customers to
for the customer. buy from the company which makes it a lucrative
2. Continuous innovation - An and sustainable business.
entrepreneurial company must - An entrepreneur must remember that his
constantly create innovative ideas and product and/or service is the "what" of his
transform them into new or improved business and personal branding is the "why".
products and/or services or processes.
3. Strategic flexibility - An entrepreneurial
company must display an enthusiasm to
valuate and fine-tune its strategies,
action plans, techniques of resource BENEFITS OF PERSONAL BRANDING:
allocation, structure, culture, and 1. Trust and authority - With a personal
management systems. brand an entrepreneur can build trust
4. Calculated risk-taking - Risk-taking refers with his customers and position himself
to pursuing novel or opportunities. as an authority and a thought leader in
Entrepreneurs must take calculated the industry.
risks, but some can be serious for the 2. Get featured in media - With a personal
future of the company. brand, it easier for an entrepreneur to
5. Proactiveness - Entrepreneurs are pitch and be found by media like online
conscious of the significance of the publications, magazines, television,
external marketing environment; radio, podcasts, and others. The media is
entrepreneurs try to reassess the in continuous search of can share their
elements of the external environment to visions with the audience. experts that
lessen its ambiguity, moderate reliance 3. Build a network-With a personal brand it
and exposure of the company, and/or clearly articulates who the entrepreneur
transform the environment in which the is, what he does, and how he helps
company functions. others. The brand makes it easier for
6. Resource leverage – Entrepreneurs are other people and other entrepreneurs to
obligated to utilize their resources in the see value in connecting with the owner
best possible way. They control their of the business.
resources so that they ca use them 4. Attract more customers - Building a
longer than others have used them in personal brand that positions an
the past. They use resources that others entrepreneur as the go-to expert in a
do not regard as resources. They use particular industry or niche helps him his
other people's/companies' resources to ideal customers.
accomplish their own goals. 5. Premium pricing - With a strong
personal brand charging premium prices
for products and services is justifiable.

20
 Cesocsci 4
The entrepreneurial mind
6. Create a lasting platform - Over time, a issues and to word-of-mouth
business will surely evolve. An endorsement coming from customers.
entrepreneur may even jump to multiple  It is an effective technique to referrals
businesses in diverse industries over the particularly those experts of the
course of his career. industry.

REFERRALS
Social media platforms that can do a lot for an
-are good source of new customers for
entrepreneur's personal branding:
entrepreneurs who wants to achieve business
1. LinkedIn - This network is really designed goals easier.
to let others know who are professional.
It can display information such as school
graduated from, line of study and
expertise, work history, passion, and the
likes, basically, everything that has to do
VALUE OF NETWORKING TO ENTREPRENEURS
with being a professional.
2. Twitter - This is another influential and  networking means establishing an
popular platform for posting business equally advantageous relationship with
news and developments. This can also other business people and possible
be used for simply sharing information. customers.
3. Pinterest- is perfect for communicating  main goal of networking is to tell others
the entrepreneur's numerous interests. about an entrepreneur's business and
The graphic nature of interest makes it confidently turn them into customers.
distinctive.  to increase business revenue.
 "Your Network Is Your Net Worth:
Unlock the Hidden Power of Connections
MODULE 6
for Wealth, Success, and Happiness in
NETWORKS AND FOUNDING TEAMS
the Digital Age"-Porter Gale (the
network of people will be the
"Effective networking isn't a result of luck - it interpersonal safety net of the
requires hard work and persistence."- Lewis entrepreneur that makes certain his
Howes better output and personal satisfaction.)

ADVANTAGES OF NETWORKING TO
NETWORKING ENTREPRENEURS
 is an art form that an entrepreneur must 1. Better Business Opportunities
be expert about. -With strong networking means, there is
 Networking concerns connecting people great possibilities of powerful position
which will be beneficial for each other's and infinite business opportunities.
business
-businesses are able to meet possible
 is no doubt one of the best tool to customers and produce referrals that
provide solutions seemingly very difficult they can make follow to turn into

21
 Cesocsci 4
The entrepreneurial mind
customers also. Networking may lead an
entrepreneur identify for opportunities
such as partnerships, joint ventures or 6. Personal Satisfaction
expansion to another. -The important virtue of networking is
2. Increased Status for entrepreneurs to pass on the learned
-Being remarked and getting seen with lessons about life and business to others.
well-known and highly influential people -It is personally rewarding to make
may enhance good standing among contributions to the growth and
friends and other entrepreneurs in the opportunity of others especially in
industry business
-Networking may build the image of an
entrepreneur as someone expert,
trustworthy, and compassionate person
who can be useful when it comes to
connections with people.
3. Enhanced Knowledge WAYS IN DOING NETWORKING
-Through networking and entrepreneurs
are able to expand their knowledge 1. Networking through social media
power from business experts with whom -Social media is the trend today which is
they can have the opportunity to learn why it is easy to build a network through
and obtain advice about businesses and it. LinkedIn, Facebook, Twitter and even
life as well. on Google Plus are some business groups
-An entrepreneur may take advantage of where entrepreneurs may join easier
the viewpoints and prior experience of and start forming networks
others possibly in the same line of -social media such as mentioned are very
business. Advices from a business owner good means to communicate with
can help an entrepreneur to improve customers and business partners.
business and personal life. 2. Networking through Business Events
4. Positive Influences -An entrepreneur ought to join business
–through networking an entrepreneur meetings, events, awards and seminars
may connect with entrepreneurs, so that he can personally interact with
business owners, and successful people people in the industry.
who are pursuing excellence in their -LinkedIn, Myspace and Wisdom Builder
business and personal lives. are some network club sites where
-People with positive mindset may uplift entrepreneurs may join. Mostly during
and motivate others to grow and flourish business events, participants exchange
as an entrepreneur and as a person. company cards, links and start selling
5. Growing Confidence their respective products and/or
–Having regular discussions with the services.
right network can build the confidence -Entrepreneurs may join local business
and optimism of people in business. groups that meet on a regular basis.
With the right connections and being -In the Philippines, membership with the
connected with a network can boost the Rotary Club is a beneficial way to
confidence of owners and network both personally and for
entrepreneurs. business.
22
 Cesocsci 4
The entrepreneurial mind
business development of an
ROTARY CLUB entrepreneur.
-Here entrepreneurs may meet with 4. Be a resource on social media–In order
professionals who have diverse to build trust among fellow followers an
backgrounds and could exchange ideas, entrepreneur may make comments and
form beneficial and lifelong friendships involve with the right industry content.
with them. At the same time being a Inbound networking can be generated by
member of a rotary club could be a way networking in which contacts will find
to give back to the communities. and reach out to the entrepreneur.
-can be ideal networking groups for 5. Do basic press outreach - Local media is
entrepreneurs who wanted to combine an important element of networking.
services to their communities with People in this filed can help in narrating
networking. the success of an entrepreneur to a
larger audience. An entrepreneur may
create a contact list of media
WAYS OF STARTING NETWORKING personalities whom he can share his
story in business news in order to gain
1. Enhancing the profile - Being visible and and establish himself in the business
getting noticed are the rewards of world.
joining networks. When an entrepreneur 6. Opportunities - The opportunities for an
attends business meetings and social entrepreneur is abundant when he joins
events, his face becomes familiar to networks. Opportunities such as joint
other people in the business. A great ventures, client leads, partnerships,
start for an entrepreneur to start his speaking and writing breaks as well as
networks is to have active participation another business are among the
in advisory committees, expos and extensive opportunities.
conferences.
2. Offering help first–The best start to build
networks is to ask questions and
INCUBATORS AND ACCELERATORS
discover how to add value to challenges
being faced by others. An entrepreneur Basis of Accelerators Incubators
Distinction
must contribute first something valuable
Definition Accelerator is a Incubator is a
for the network. Once he starts being place for existing place for new
helpful, his help would be likely to be… business that small
3. Connections - It is always the "who" and helps them businesses and
achieving startups that
not the "what" which is important to any
growth in their offer support
business. There must be great sources of businesses. staff and
connections for any entrepreneur to equipment for
really be successful in business. further
development
Networking makes certain the great pool
Objective Support startups Support
of right connections that can provide a with an array of startups with a
lot of benefits. Developing-good business support structured
relationships with contacts may form resources and program along
numerous milestones for the career and services, fixed
orchestrated by curricula...
incubators
23
 Cesocsci 4
The entrepreneurial mind
Time Period Intense three to Less time Management (AIM). The goal of this
four-month pressure and partnership is to give startups the
program less intensive
Business Large mentor- Smaller mentor
mentorship, training, and support
Model driven business network network they need to build and grow
network their businesses.
2. Kickstart Ventures - This is a subsidiary
Entrance All can apply Restricted and
of Globe Telecom that offers mentorship
depends on the
incubator for six months incubator period and even
Selection Extremely Usually less fund those chosen startups that can
selective selective solve real life local and global problems.
Equity Ratio Take 6 to 8% No equity stake Some of the chosen startups of this
equity stake was taken
Resources Ample Some incubator that are already successful
Areas The Web, Biotech, include Kalibrr, Tripid, Ava, ZAP and
mobile, IT Medtech and Apptivate.
products 3. Ideaspace Foundation - While Kickstart
Selection Competitive - Competitive -
Process essential to based on
is offered by Globe, this time Ideaspace
business model available space is an incubator firm backed by its
and resources competitor which is Smart
Services Fast-test and Management Communications. Since it started to
validation of support, IP
incubate, the foundation has received
ideas, with rights
mentoring assistance, more than 700 entries. Out of these
support from networking and entries it has provided incubation for a
experienced access to period of six months to ten civic-minded
entrepreneurs external
startups plus giving $12,000 of funding
and seed- financing
funding to each startups. One of its notable
incubatees from this mentoring program
was Pinoy Travel, online bus booking
service that had successfully launched its
INCUBATOR service.
– An incubator is a business place that helps 4. Launchgarage - This program is a
startup businesses and new entrepreneurs to partnership between Globe telco-backed
develop their products and ideas by supporting Kickstart Ventures and web engineering
them with services such as training, firm Proudcloud. Each startup is called
management support, intellectual property (IP) "garageheads" which is offered a five-
rights assistance, resources and even shared month incubation period. In order to
office and facility spaces. introduce its most viable product (MVP)
it provided $30,000 for each startup.
NOTABLE INCUBATORS IN THE PHILIPPINES 5. UP Enterprise Center for
Technopreneurship - The University of
1. AI -Dado Banatao Incubator - Located the Philippines, at state university and
inside the AIM building in Legazpi owned by the government has also its
Village, Makati City, it was launched in incubation program. It offers its Diliman
June 2016 through the partnership of campus as a working space for its six
Philippine Development Foundation months' incubation period. The center
(PhilDev) and the Asian Institute of also serves as connection to other
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The entrepreneurial mind
incubators especially with technology 2. A Space's _PASSPORT - As an
leaders such as Ideaspace, Plug and Play accelerator, participants are provided
Tech Center and Narra Venture Capital. flexible workshops, class materials and
This DOST-UP Enterprise Center for introductions to investors by the end of
Technopreneurship offers assistance to the program. The main focus of this
aspiring entrepreneurs who wanted to accelerator is to help founders on
develop products and/or services in the network.
field of pharmaceutical, health services,
BOTH INCUBATOR AND ACCELERATOR
and information and communications
technology markets. 1. Cerebro Labs - Here, chosen startups are
6. DOST-PEZA Open Technology Business provided a seed money of Php60,000
Incubator (OpenTBI) - The Department cash and granted a six-week intensive
of Science and Technology and the Incubation program of training and
Philippine Economic Zone Authority mentoring. Among the perks given to
created a partnership to sharpen tech- participants are the use of working
inclined entrepreneurs. This would help space, office equipment sharing,
the nation grow IT- and ICT-based Internet, consultancy and the access to
startup companies with its legal, Cerebro Lab's Silicon Valley-trained staff.
marketing, and technological assistance 2. StartUp Village - As both an incubator
to startups. However, startups need to and accelerator, StartUp Village hopes to
pay a Php 5,000 processing fee in bring exceptional ideas and concepts to
addition to the rental of space. actuality. It was founded by Let's Go
Foundation and powered by the Google
Developers Launchpad. The primary
ACCELERATOR
focus is on disruptors that disturbance
– An accelerator is another business place that
the industry or a revolutionary product
offers a program with a fixed term which
that makes a brand-new industry.
includes mentorship and educational
components and usually ends in public pitch
event. The objective of an accelerator is to assist
in the rapid grow and help in a successful NETWORKING TO BUILD THE FOUNDING
product launch. TEAM

1. The Prima Donna Genius - Since

DISTINGUISHED ACCELERATORS IN THE expertise is required as a skill for a
PHILIPPINES founding team, it needs to have a brainy
1. The Founder Institute- Based in Manila, person. He is the one who would
this global idea-stage accelerator offers challenge team members about the
aspiring entrepreneurs with a structure, things that they are not certain could be
mentorship, and robust network needed possibly done. He is full of passion and
to win the challenges of their startup regarded as the most high-risk member
of the team.
journey. The program is tough and only
2. The Superstar - This is the person who
30% of accepted founders are able to
always gets things done and complete
reach to the finish line.
tasks. He is often strange, boring yet
charismatic in nature. He takes care of
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The entrepreneurial mind
almost everything from making orders of 1. Hungry for knowledge, even when plans
office supplies to maintaining the change–There is no such thing as a fixed
operation of the office. Most of the plan. The original will most likely change
times the prima donna and superstar is with multiple pivots. Members of the
the same person. founding should be able to quickly make
3. The Leader - Any company needs a changes in order to attain long-term
person who can make hard decisions growth. Founding team members must
although a democratic process is always always be open to new ideas not their
implemented in the office. A new own. They must be eager to challenge
business requires a clear leader. This the rest of the team to identify best and
person not essentially the Chief innovative solutions to problems.
Executive Officer (CEO), not the person 2. Admit mistakes -mistakes needs to be
who has the biggest salary, not the accepted and even celebrated so that
person with the highest equity. He is the the founding team would operate with
kind of individual that every person looks positivity. Admittance of mistakes should
up to and people are willing to follow start from the founders, so that
him particular when there is conflict and employees will follow.
controversial decisions to be formed. 3. Failing is not defeat - Being brave should
4. The Industry Veteran - For a startup, it be the kind of determination founders
pays to have someone in the team who must possess. Being able to admit failure
is well-versed about the ins and outs of is important to build as founding team.
the industry. He has seen and has been Failing even for several times but still
immersed in the competitive landscape continue to move despite obstacles is
of the industry. He knows what everyone the one that separates the good from
is doing and knows how everybody else the great team
does the business. Often, the 4. All members are obsessed - Members of
leader and the industry veteran could be the founding team must all be
the same person. hyperactive. Solving problems equipped
5. The Sales Animal - Brilliant ideas need with healthy obsession makes founders
someone to sell them. A strong take a big leap of faith to begin with the
salesperson in the founding team shall startup. It is vital that all founding
lessen the risks in a startup business. members should share the obsession to
With a very experienced salesperson, the build a strong team. This shared
startup could beat competition. obsession glue them together to be
6. The Financial Suit - A professional successful despite storms.
controller is necessary for a startup to
handle financial risks. It is vital for a
team to include someone who shall
oversee the finance function

CHARACTERISTICS OF A GREAT FOUNDING

TEAM

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 Cesocsci 4
The entrepreneurial mind

QUIZ 3

1. The unfair advantage block in the lean

FALSE
canvas model refer to what the venture
has that is easy to copy.
2. Unlike the business model canvas, the FALSE
lean canvas model contains only two
blocks.
3. There can only be one revenue stream FALSE
for one business.
4. Entrepreneurs cannot collaborate with FALSE
their competitors
5. The business model canvas has only two FALSE
major parts, finance and customers.
6. Nine blocks comprises the value
proposition canvas. FALSE
7. Channels are pathways to reach
customers. TRUE
8. The lean canvas model focuses on
problem solving. TRUE
9. A business model can be presented in
one page. TRUE
10. Entrepreneurs can collaborate with
suppliers and end users. TRUE
11. Match the following types of customer
relationships with their desciptions on
the right.

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 Cesocsci 4
The entrepreneurial mind

12.
13. The features common to both business
model canvas and lean canvas model
are: cost structure and revenue streams
14. Two companies agree to establish a
totally different company–Joint venture
15. Non-physical and intangible important
assets needed by the
business– Intellectual resources
16. Which of the following belong to the
customer profile block of the value
proposition canvas?– Product/service,
Gain creator, pain reliever
17. The pathways to reach customers
are– Channel
18. The infrastructure of the business model
canvas are–Key partners, key resources,
key activities
19. This canvas model includes key partners
and key resources–Business model
canvas
20. The reason why customers will buy your
product and not from competitors.–
Customer Value proposition
21. The bridge between the value
proposition and the customer segment–
Key activities
22. This business model canvas focuses on fit
between product and service offering
with the needs of customers.– Value
proposition canvas

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