Topic: How to Start a Small Business GOAL SETTING

Subject: Entrepreneurship  Sets clear and specific short term objectives

Teacher: Ma. Angelica C. Obregon  Sets clear long term goals.
____________________________________________ INFORMATION SEEKING
2006 Global Entrepreneurship Monitor  Personally seeks information on clients, suppliers, and
 Philippines is 2nd in 42 countries with most individuals competitors
owning a business  Seeks experts for business or technical advice
 4 of 10 Filipinos are entrepreneurs  Uses contacts or networks to obtain information
 54% motivated by necessity, SYSTEMATIC PLANNING AND MONITORING
only 37% by opportunity  Develops logical, step by step plans to reach goals
 71% lacking in novelty → Innovation, Originality,  Looks into alternatives and weighs them
Newness, Freshness, Uniqueness  Monitors progress and shifts to alternative strategies
Why do Businesses Fail? when necessary to achieve goals
 Lack of vision and purpose PERSUASION and NETWORKING
 Over dependence on specific individuals in the business  Employs deliberate strategies to influence or persuade
 Poor market segmentation others
 Competition  Uses business and personal contacts to accomplish
 Lack of experience objectives
 Insufficient capital (seed money) SELF-CONFIDENCE
 Poor location  Believes in self
 Poor inventory management  Expresses confidence in own ability to complete a
 Over-investment in fixed assets difficult task or meet a challenge
 Poor credit arrangement ________________________________________________
 Personal use of business funds Topic: MASTERY OF THE OPPORTUNITIES
 Unexpected growth (External assessment: Opportunities and Challenges)
MASTERY OF SELF (Internal assessment:
Knowing your Strengths and Weaknesses) BUSINESS IDEA
There are REWARDS… There are RISKS…then DO YOU Examples of business ideas
HAVE WHAT IT TAKES TO BE A SUCCESSFUL  Sari-sari store
ENTREPRENEUR?  School supplies
 Meat processing
10 Personal Entrepreneurial Competencies (PECs)  Catering services
ACHIEVEMEN 1. Opportunity Seeking  Research services
T Cluster 2. Persistence  Massaging and reflexology services
3. Commitment to Work  Day care center
4. Risk Taking  Messengerial service
5. Demand for Quality & Efficiency
PLANNING 1. Goal Setting Sources Business Ideas
Cluster 2. Information Seeking  Unsatisfied needs and wants in your community
3. Systematic Planning and Control  Hobbies
POWER 1. Persuasion and Networking  Talents
Cluster 2. Self-confidence  Work experiences

OPPORTUNITY SEEKING Entry Strategies

 Sees and acts on new biz opportunities  START-UP
 Seizes unusual opportunities to obtain financing,  BUYING AN EXISTING BUSINESS
equipment, land, workspace, assistance, etc.  FRANCHISING
 Takes repeated or different actions to overcome an  FAMILY BUSINESS
obstacle
 Makes personal sacrifice or expends extraordinary Long-listing of business ideas
efforts to complete a job  What skills do you have?
 Sticks with judgment in the face of opposition or early (I am good at doing the following…)
lack of success  What are your interests?
COMMITMENT TO WORK (I enjoy doing the following…)
 Accepts full responsibility for problems in completing a  What are your experiences? (I have work or
job for customers educational experience of the following)
 Pitches in with workers or their place to get the job  Do you have business network?
done. Expresses a concern for satisfying a customer (I know the following people, friends and relatives who can
RISK TAKING help me…)
 Takes what he or she perceives to be moderate risks.  What are the businesses that I can make?
 States a preference for situations that involve moderate
risks. Types of Business
DEMAND FOR QUALITY and EFFICIENCY  Retail business
 Always strives to raise standards  Wholesale business
 Aims for excellence  Franchising and other business options
 Strives to do things better, faster, cheaper  Manufacturing business
  Service business
 Agriculture, forestry and mining
Business idea to Business Opportunity
 Not all business ideas will sell
 Assess the environment for opportunities and see if the
business is worth pushing through
Innovate! Differentiate!
 Innovation – modifying a product for an
existing/expanded market.
Example: Jollibee hamburger format came from the US
McDo. Jollibee is more successful here than McDo because
it modified the format to cater to the Pinoy market.
S.C.A.M.P.E.R
 Substitute – replace one or several components of the
product
(ex. From “pure beef/pork” to “beef/pork and saba peel
mix”)
 Combine – merge one or several elements of the
product
 Amplify – enlarge or make the product more
sophisticated (hamburger mix with cheese and catsup
added )
 Minimize – make the product more simple
 Put to other use – use the product for a different
purpose (as filling and as ulam)
 Eliminate – delete (use of preservative)
 Rearrange – revise the order of the elements contained
in one product
Identifying business ideas is a matter of keeping one's eyes
open to opportunities that exist.
IDENTIFYING BUSINESS OPPORTUNITIES
Some guides:
 Personal preferences.
 Consider import substitution opportunities.
 Explore trends in the export market.
 Exploit local underutilized materials in abundance.
 Assess the market.
 Try innovations.
 Consider the use of technologies to start a business
enterprise.
1. Personal preferences. Think of what lucrative business
activity you can engage in given your background,
skills and/or and interests.
2. Consider import substitution opportunities. Identify
those goods which the Philippines imports from other
countries. Which of these foreign goods can you
produce locally? If you can manufacture a competitive
product that can equal, if not surpass the imported
brands in terms of quality and price, then you may just
have a gold mine in your hand.
3. Explore trends in the export market. Philippine
handmade products are greatly appreciated abroad for
their craftsmanship. You may consider developing
novel handicraft items that can make it big overseas.
4. Exploit local underutilized materials in abundance.
Look around. What raw materials can you get hold of
easily, cheaply and are in abundance? What can you
do with them? Are they saleable? Do a little
brainstorming. Put their creative minds to work.
5. Assess the market. Is there a need for a particular
product or service that is currently not being met or is
only being partially being filed?
6. Try innovations. Many people have taken things for
granted. Can you modify an existing product into
something new and innovative? Is there a new way of
doing an old thing? How about thinking of new
product features?
7. Consider the use of technologies to start a business
enterprise. There are "matured" technologies
developed and being promoted by the Department of
Science and Technology which can be adopted by
investors.
 There are other things which can be done to explore
business opportunities. The key is to be keen and attentive to
the environment, sensitive to the needs of the market and
most importantly, creative.
 The next step is to shorten the your list of choices
through a screening process.
 Screening is done primarily so you can focus on the
business that will be suitable to your situation.
1. Arbitrarily, cull out impossible ideas.
2. PERSONAL LEVEL SCREENING
3. FIRM-LEVEL SCREENING
THE SCREENING PROCESS
 PERSONAL LEVEL SCREENING - With this method,
you apply the screening process to yourself as a
business proponent.
 FIRM LEVEL SCREENING - This method uses
generally accepted business criteria in determining the
feasibility of a proposed idea.
Sources of information
1. Competitors or people who are in similar business
2. Raw materials suppliers
3. Potential customers
4. Informants such as government, manager of large
companies who know about the market in general.
5. Business and trade press media
Still undecided?
 Is it to choose between the priority business ideas? Get
more advice
 Is it that you are not sure you are really suited to start
such a business? Go back to PEC. Perhaps you are more
suited to be employed. Choose what is better for you.
 Is it that you are not just happy with the priority
business ideas? Have a break. In a week or more,
start looking for other business ideas.