IMPACT OF ENTREPRENEURIAL MINDSET TO WORKPLACE

PRODUCTIVITY

Learning Objectives – After reading this information sheet, the

student/trainee should be able to;

1. Define Business Plan and Basic Business Cycle.

2. Understand the basic components of a Simple Business Proposal.

2. Use the 6 “P’s” for Entrepreneurship to identify business opportunities and

start to plan how to pursue a business idea.

BUSINESS PLAN
A business plan is also a road map that provides directions so a business
can plan its future and helps it avoid bumps in the road. The time you spend
making your business plan thorough and accurate, and keeping it up-to-date,
is an investment that pays big dividends in the long term.

Understanding Business Plans

A business plan is a fundamental tool any startup business needs to

have in place prior to beginning its operations. Usually, banks and venture
capital firms make a viable business plan a prerequisite to the investment of
funds in a business.

Even though it may work, operating without a business plan is not a

good idea. In fact, very few companies are able to last without one. There are
definitely more benefits to creating and sticking to a business plan including
being able to think through ideas without putting too much money into them—
and, ultimately, losing in the end.
 A good business plan should outline all the costs and the downfalls of
each decision a company makes. Business plans, even among competitors in
the same industry, are rarely identical. But they all tend to have the same
elements, including an executive summary of the business and a detailed
description of the business, its services and/or products. It also states how the
business intends to achieve its goals.

The plan should include at least an overview of the industry of which the
business will be a part, and how it will distinguish itself from its potential
competitors.

Basic Business Cycle

Family expenses are important, but your business cannot survive if your
personal and family expenses become too large. It is important to ensure that
you have enough money to keep your business running and to grow your
business.

Personal necessities are more important than luxuries (things you want
but might not really need). Only buy luxuries when your business is making
enough money all the time so that you are sure that you can afford them.

People and organizations often charge interest on loans they give to you.
You need to plan to repay the interest, as well as the actual loan, if you get a
loan.

Your cooperation – with buyers, suppliers, lenders, and even competitors

– is an important element of success.

You can often negotiate a lower cost for raw materials or finished
products when the seller needs money immediately.

Unexpected Costs
 It is important for you to plan for unexpected events and costs by saving
money in case these happen. It is important to spend money on important
necessities (such as medical treatment) in order to prevent future problems. If
you have no savings, you may not have enough money when unexpected costs
arise.

Record Keeping
It is important for you to keep records to see who owes you money, to
assist with planning, and to see if the business is making money.

Business Planning
As you run your business, it is important to update your business plan with
additional information about what actually happened during the business
cycle. Always compare what you are doing to what you had planned to do to
see how your business is doing.

Key Questions to Prepare a Business Plan

The following questions can be helpful when developing a Business Plan:

1. What is your product or service? - PRODUCT

2. Who will buy your product or service? - PEOPLE

 3. What will be the price of your product or service? - PRICE

4. Where is the location of your business (production area) - PLACE

5. How will you advertise your product or service? - PROMOTE

6. How will you make the product or deliver the service? What will
you need? (skills, technology, material, space, etc.) -
PRODUCTION

The Six “P’s” for Entrepreneurship

PRODUCT The product that you will sell or the

service

that you will provide.

PEOPLE The people or customers that you think

will buy your product or your service.

PLACE The location of your business, production area.

PRICE How much can you charge for the
product or service? How much do other
businesses charge for a similar product
or service?

PROMOTION How will you make sure that others know

about your product or your service? How
will you make your product or service
attractive to customers? Where will you sell
your product or service (market outlets,
selling places)?

PRODUCTION What it will take you to develop the

product or deliver the service? What you
will need to develop the product or
deliver a service.