14/08/2018

DEVELOPING A BUSINESS PLAN Learning Competencies

1. Identify the market problem to be solved
or the market need to be met
2. Propose solution/s in terms of products
and service/s that will meet the need using
techniques on seeking, screening and
seizing opportunities.

Finding a solution to a problem

when you want to do things faster
or easier or with less preparation
can lead to a business idea.
✓The first thing a start-up
entrepreneur must do is • A good business idea can be a seed for a
identify the opportunities successful business venture.
surrounding him.
• Good business ideas result from serious
efforts and much creativity on the part of the
✓Opportunities lead to ideas entrepreneur
on what projects to
undertake.

ENTREPRENEURIAL MOTIVATION &

• Finding a good idea is the first step in
transforming the entrepreneur’s desire and SOURCE OF
creativity into a business opportunity.
• There is no limit to conceptualizing business
ENTREPRENEURIAL IDEAS
ideas. To do it, you need to keep your mind and
eyes open and be ready to study each
opportunity you find.
• An idea whether weird or simple, will serve as a
starting point. It just needs to be transformed
into viable business opportunities.

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ENTREPRENEURIAL MOTIVATION ENTREPRENEURIAL MOTIVATION

INTERNAL FACTORS EXTERNAL FACTORS

✓Strong desire to do something new.
✓To be independent in Life.
✓Making the maximum use of technical/professional
knowledge.
✓Occupational experience/background.
✓Passionate about particular activity.
✓Dissatisfaction with present job.
✓To attain self-satisfaction.
✓Utilizing Government grants & subsidiaries.
✓To continue ancestor business.
✓Financial assistance from Institutions.
✓Availability of resources.
✓Encouragement from big business houses.
✓Availability of sick units/easy financial terms.
✓Encouragement from family members.

ENTREPRENEURIAL PROCESS OF
CREATING A NEW VENTURE
Opening of As a future entrepreneur, always remember
Entrepreneurial
that a business must be firmly established
Venture
on existing business opportunities, and that
Identification of there can be no business opportunities in
Entrepreneurial the absence of an entrepreneurial idea.
Opportunities
In contrast…
The owner of an ordinary small business
Creation of usually opens a business even if there
Entrepreneurial Idea are no business opportunities existing in
the community!

Sources of Entrepreneurial Ideas Changes in the Environment

• Entrepreneurial ideas arise from the changes
•Changes in the environment that happen in the external environment.
•Technological discovery and advancement • Not everyone welcomes changes in the
•Governments thrust, programs, and policies external environment
•People’s interest • However, a person with an entrepreneurial
drive views these changes positively. He/she
•Past experiences determined what business opportunities they
may provide.

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Changes in the Environment Changes in the Environment

• The term external • Physical environment includes:
environment refers to the: a. Climate
- Physical environment; b. Natural resources; and
- Societal environment; and c. wildlife
- Industry environment.

Changes in the Environment Changes in the Environment

• Societal Environment includes the • Industry environment includes:
various forces like: - Government
a. Economic forces - Competitors
b. Sociocultural forces - Suppliers
c. Political forces - Customers
d. Technological environment - Creditors
- employees

Technological Discovery & Advancement Government’s Thrust, Programs, and Policies

A person with • The priorities, projects, programs, and
policies of the government are also good
entrepreneurial interest sources of entrepreneurial ideas,
looks at the possibility of • Programs and agenda of the Philippine
business opportunities in government intuitively address the needs of
the Filipino people.
any new discovery or • There are also instances when the national
advancement in government responds to the will of
technology. international agencies or the world market.

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People’s Interests Past Experiences & Exposures

• The interests, hobbies, and The expertise and skills
preferences of people are a rich source
of entrepreneurial ideas. developed by a person
• However, entrepreneur must be keen who has worked in a
in identifying the cycle of interest and particular filed may lead to
trends of his/her market since these the opening of a related
tend to continuously change.
• He/she must be ready to address the
business enterprises.
change properly and immediately to
avoid possible negative effects on the
operations of the business venture.