DIGITAL BUSINESS AND ENTREPRENEURSHIP

BUSINESS IDEA

NATHASIA LIMAN
119211067
ACCOUNTING IC

UNIVERSITAS PENDIDIKAN NASIONAL

(UNDIKNAS) DENPASAR
2020
BUSINESS IDEA THE.TEH

1. What skills do I have to start this business?

- Financial Management: Financial Management is a vital activity in any
organization or company. It is the process of planning, organizing, controlling and
monitoring financial resources with a view to achieve organizational goals and
objectives.
- Project Management and Planning: These things are planning for
communications and procurement activities, as well as contract any third-party
suppliers.
- Problem Solving: Problem solving is the act of defining a problem, determining
the cause of the problem, identifying, prioritizing, and selecting alternatives for a
solution, and implementing a solution.
- Networking: Business networking is the process of establishing a mutually
beneficial relationship with other business people and potential clients and
customers. So the benefits are the intangible gains made by communicating with
other professionals in or relating to your industry.
- Leadership: Capacity of a company’s management to set and achieve challenging
goals, take fast decisive action when needed, outperform the competition, and
inspire others to perform at the highest level that the company can.

2. What factors will influence the demand for my product or service?

- Price: Which is related to the substitute goods. Substitute goods are those goods
which can be used in place of one another satisfaction or a particular want.
- Income levels: The greater the incomes, the greater the demand will be. Because
the product is a normal good, then an increase in income leads to rise in its demand,
while a decrease in income reduces demand.
- Consumer Tastes and Preference: Tastes and preferences of the consumer have
a direct influence on the demand for a commodity. If my product is on trend and is
preferred by the customers, the demand for the product will definitely rise. On the
other hand, demand for it will fall, if the consumers have no taste or preference for
that commodity.
- Competition
- Advertisement Expenditure
- Consumer’s Expectations: It is if the price of the product is expected to increase
in near future, the consumer will buy more of that commodity than what they
normally buy. In that situation, they won’t have to pay a higher price in the future.
Similarly, when the consumers expect that in the future the prices of goods will fall,
then in the present they will postpone a part of the consumption of goods with the
result that their present demand for goods will decrease.
 3. What type of business will I start?
Food Industry
The food industry is an aggregation of diverse businesses which together are responsible
for supplying food to the global population. In order to produce food, the industry uses
huge masses of raw material that it obtains directly from the farming sector. Thus, the
industry is almost entirely dependent on the agriculture industry. The sector enxompasses
everything from farming and food production, preservation, packaging, and distribution,
to retail and catering. Such a complex industry requires a wide range of skills, which in
turn creates workplaces in several hundred occupation types.

4. What type of business ownership is right for me?

Sole Proprietorship. A sole proprietorship is easy to form and gives complete control of
business. Sole proprietorships do not produce a separate business entity. This means
business assets and liabilities are not separate from personal assets and liabilities. And also,
sole proprietorships can be a good choice for low-risk businesses and owners who want to
test business ideas before forming a more formal business.

OPPORTUNITY & MARKET ANALYSIS THE.TEH

1. How should I conduct market research?

- Determine the purpose of the product
This is to use them to assess business risks (e.g., threats), reduce issues, or create
opportunities. Look at past problems to decrease future risks and analyze past
successes to see what you need to continue to do in the future.
- Look at the Industry’s outlook
Analyze outline the current state of the industry. Include where the industry is
heading using metrics such as size, trends, and projected growth. This thing will let
investors or lenders see that the homework on the business’s industry has been
done. And will show them whether or not the industry is worth their time and
money.
- Pinpoint target customers
Because not every person will be the customer. When analyzing the market,
determine who the potential customers are. Get to the process of a target market
analysis. Research should paint a clear picture of the potential customers like: age,
income, gender, location, occupation, education level, marital or family status,
customers needs, interests, personalities, demographics.
- Compare Competitors
Know who are the competitors, and what they’re trying to target. Research like
what the competitors' offerings, location, targeted customers, and disadvantages in
the market. Make a SWOT analysis.
 - Gather Additional Data
The data that gathered should be unbiased, relevant, and factual. That will be able
to back up the research and make decisions based on accurate information.
- Analyze Findings
Analyze like an overview of the company size and growth rate, the projected market
share percentage, the outlook for the industry, discounts that plan on offering,
buying trends, business’s forecasted growth, prices of the offerings, how much
customers are willing to pay, cash flow projection, customer groups, results of other
analyses.
- Put the Analysis into Action

2. Who are my competitors?

Machi Machi
The aesthetics of Machimachi’s shops provide a space for creativity and originality. They
want their customers to feel Machimachi’s imagination flowing through their body when
they hold a Machimachi bottle. They are an innovative, artsy, comfortable brand that offers
natural, healthy, yet tasty handmade beverages and toppings. Their speciality drinks,
unique bottles and modern stores deliver a pleasing experience of Asian tea culture. They
hope to make Machimachi a truly positive and friendly lifestyle in their community.

3. What are my product and pricing strategies?

Value-based pricing
The value-based pricing strategy focuses on what the product is worth to customers.
Determining value-based pricing can be complex. A general rule is to break down each
piece of the additional value that provides over and above today’s solutions and then
calculate what the total adds up to. Then, test it with various audiences to see what happens
when customers are faced with a buying decision at that price. If stuck, bring in a pricing
expert.

4. How do I promote my product?

- Use a special introductory offer
Discounted pricing, reduced-rate bundle or package, voucher or coupon with
purchase, buy one get one free deal, double the points if have a loyalty program,
free gift.
- Make use of Google My Business
- Share Customers Reviews
- Post on Social Media
This is an easy way to reach the audience and followers, they can easily share the
company post to their own profiles. Also, can ask questions about the product in
the comment section. Their questions and answers can serve as an organic FAQ.
 - Run Facebook Ads and Instagram Ads
These platforms are particularly useful because the personalized data voluntarily
provided through user’s profiles make for unbelievably specific audience targeting
like gender, age, location, interests, marital status, profession, and more. And there
are also several options for ad type, budget, and duration of campaign, so it can
accommodate the goals within the means.

5. How do I sell my product?

● Know the product: Imagine every question a prospect might ask and arm the
owner with answers, linking each product fact to a customer benefit.
● Explain an offering in a sentence: Condense everything that the owner knows
into a brief explanation that can grab interest and cause the prospect to think,
“Hmm, this will benefit me.”
● Know the prospect: Visit Web sites, read company brochures, talk to mutual
associates, and do research necessary to arrive armed with prospect knowledge.
● Know what message that the prospect is ready to receive: Especially if it is a
new or unusual offering, it may need to help the prospect see the need before asking
the order.
● Set the sales presentation goal: Aim is an incremental step to prompt the prospect
to request a proposal, to schedule a meeting with a higher-level decision maker, to
arrange a demonstration, or to take some other step to move the process toward its
final step.

FINANCIAL STRATEGIES THE.TEH

1. What are my business costs?

- Equipment
- Office Space
- Inventory
- Marketing
- Office Furniture and Supplies
- Utilities
- Payroll
- Insurance
- Taxes
- Shipping
2. Where will I get the capital?
- Raise Capital by Asking Friends and Family
Ideally select a friend or family member with solid business skills. “Narrow the list
down to friends or family who have faith that will succeed, who understand the
plans, and who are clear about the risks.”
- Apply for a Loan

3. How do I measure the economics of one unit?

With Define Unit as “One Item Sold” Method
If a unit is defined as “one item sold,” then it can determine unit economics by calculating
the contribution margin, which is a gauge of the revenue amount from one sale minus the
variable costs associated with that sale. The equation is expressed as:

Contribution margin = price per unit - variable costs per sale.

4. How do I develop an income statement and track the cash flow?

Develop an Income Statement
● Pick a Reporting Period
Will choose a monthly basis to report income statements. Creating monthly income
statements can help to identify trends in your profits and expenditures over time.
That information can help to make business decisions to make business more
efficient and profitable.
● Generate a Trial Balance Report
Print out a standard trial balance report. So it can easily generate the trial balance
through the cloud-based accounting software. The trial balance reports are internal
documents that list the end balance of each account in the general ledger for a
specific reporting period.
● Calculate Revenue
Calculate business’s total sales revenue for the reporting period. Revenue includes
all the money earned for services during the reporting period, even if not yet
received all the payments.
● Determine Cost of Goods Sold
Includes the direct labor, materials and overhead expenses that incurred to provide
goods, directly below the revenue line item.
● Calculate the Gross Margin
Subtract the cost of goods sold total from the revenue total on the income statement.
This calculation will give the gross margin, or the gross amount earned from the
sale of the goods.
 ● Including Operating Expenses
Enter the total amount into the income statement as the selling and administrative
expenses line item. And will be located directly below the gross margin line.
● Calculate Income
Subtract the selling and administrative expenses total from the gross margin. This
will give the pre-tax income.
● Include Income Taxes
Multiply applicable state tax rate by the pre-tax income figure.
● Calculate Net Income
Subtract the income tax from the pre-tax income figure.
● Finalize the Income Statement

Track the Cash Flow

● Schedule Expenses
Instead of buying equipment and supplies when the owner identifies a need, time
the purchases. It helps to track the expenses because the owner already has a plan.
Trying to retroactively list expenditures, make tracking plans for purchases,
schedule regular payments such as utilities, rent and insurance.
● Match Inventory to Sales
To analyze the sales to see which inventory items sell the most. This also lets to
track high-selling items so the owner can purchase them, it lets to track low-selling
items so the owner can avoid ordering more. So the owner knows where the
inventory money is going.
● Use Cash Flow Projections
According to the Entrepreneur website, the owner should use cash flow projections.
Start with cash on hand. Add in the amounts due from customers on specific dates.
Subtract planned expenditures. Once the owner has a projection, measure the actual
cash flow against it. When a specific date arrives, if the owner doesn't have the cash
that is predicted, find out why. This can improve the tracking by identifying
expenses that may not currently be counting.

5. How do I develop a balance sheet?

Most balance sheets are arranged according to this equation:

Assets = Liabilities + Shareholders’ Equity

● Assets: Current assets such as cash and cash equivalents, prepaid expenses,
inventory, marketable securities, and accounts receivable. Noncurrent assets such
as land, equipment, patents, trademarks, and intellectual property.
 ● Liabilities: Current liabilities that may include accounts payable and other accrued
expenses. Noncurrent liabilities that are usually long-term obligations, such as
leases, bonds payable, or loans.
● Shareholders’ Equity
Shareholders’ equity refers generally to the net worth of a company, and reflects
the amount of money that would be left over if all assets were sold and liabilities
paid. Shareholders’ enquiry belongs to the shareholders, whether they be private or
public owners.
Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity
can be depicted by this equation:

Shareholders’ Equity = Assets - Liabilities

6. What is my break-event point?

Break-event point

Break-even point = fixed costs / gross profit margin

Fixed costs (e.g. Rp 5.000.000) Rp 5.000.000

Gross profit margin (e.g. 90%) 90%

Break-even point Rp 5.555.555

Step 1

Contribution margin = sales price - variable costs

Sales price (e.g. Rp 30.000) Rp 30.000

Variable costs (e.g. Rp 15.000) Rp 15.000

Contribution margin Rp 15.000

Step 2

Break-even point = fixed costs / contribution margin

Fixed costs (e.g. Rp 5.000.000) Rp 5.000.000

Contribution margin Rp 15.000

Break-even point 334 units

 7. What kind of accounting system should I use?
A single entry system of accounting
The business does not do a lot of transactions in a given day, it’s a sole proprietorship.
Because a single entry system is convenient, simple (no formal training is needed) and
provides cost savings as it does not require complex software. A small business owner
could run a single entry system of accounting on an excel program.

ORGANIZATIONAL STRUCTURE THE.TEH

1. How should I staff my business?

Careful planning is required to ensure to recruit, interview, hire, train and compensate staff
properly. Star with an organization chart to increase the chances to hire the right person for
the right job each time. Because staffing a small business is often the key to maximizing
profits, especially since small businesses don’t often have the capital to hire specialists in
important areas, such as marketing, human resources and finance.
● Staffing Needs
● Job Descriptions
● Want Ads
● Interviewing
● Compensation

2. Do I need the help of outside experts?

Yes. That may be actively involved in building business, developing strategies, growing
and maintaining strong customer relationships, and creating a service offering that’s
attractive to the market. It is more to be a mentor/coach, that contributes through others as
a formal manager, an idea leader, a project owner, or an informal employee developer.

3. How do I train and motivate employees?

● Giver regular feedback
If employees are completing their training content without getting any feedback,
they’ll start to feel like they’re dropping their work down a well, never to be seen
again. There’s nothing motivating about busy-work and if they get the slightest
whiff that their efforts are pointless, they’ll switch off immediately. Make sure to
assess learners regularly and give them a sense of where they are in their training
journey.
● Keep it interesting
Some people have the strange notion that learning is supposed to be hard work, and
being boring is all part of the package. Don’t bore the employees. If pumping out
the same lifeless training documents without a thought for learner engagement, then
don;t be surprised if the learners don’t engage with them. Spice it up a little; add
 videos, record a podcast or build a learning game. By giving employees a variety
of opportunities to interact with the content, the owner can keep the training
programme interesting and fresh.
● Identify employee strengths
Creating learning pathways for each department will go a long way towards
reducing friction and keeping motivation levels up. With a more personalised,
adaptive training programme and more motivation, employees can organically
work on their strengths and develop in a way that maximises them. By focusing on
the areas that interest them the most, they’ll be much more inclined to keep logging
in and engaging with their training and motivation.
● Recognize their expertise
Use a learning platform to highlight the experts in the business. This is one of the
first steps to encouraging a knowledge sharing culture. Once the owner has that,
other employees will see who the experts are and they’ll know who to contact if
they’re stuck. As a bonus, they’ll also see that the owner is the kind organization
that rewards people and recognizes the hard work they put.

4. What organizational structure is right for my business?

Functional Structure
It breaks up a company based on the specialization of its workforce. Dividing the business
into departments consisting of marketing, finance, and operations. An advantage of this
structure is employees are grouped by skill set and function, allowing them to focus their
collective energies on executing their roles as a department. One of the challenges this
structure presents is a lack of inter-departmental communication, with most issues and
discussions taking place at the managerial level among individuals departments. In
addition, with groups paired by job function, there’s the possibility employees can develop
“tunnel vision” - seeing the company solely through the lens of the employee’s job
function.

BUSINESS MANAGEMENT? THE.TEH

1. How do I manage expenses, credit and cash flow?

● Build your savings
Put aside a little bit of your business income to build savings. Using the money that
is saved if it is needed to pay for expenses or invest is an opportunity.
● Increase revenue and lower expenses
By increasing prices, using promotions to increase sales, trying to find an additional
way to make money, lowering utility costs, investing in environmentally friendly
equipment that uses less electricity, comparing options before agreeing to an
ongoing expense, such as a software subscription or equipment rental.
 ● Ask to pay suppliers over time
Pay suppliers or vendors with “terms”. A terms agreement means that it can pay
the supplier a certain number of days after they send the invoice. Negotiating terms
with suppliers can be a very effective way to manage cash flow without any
additional expenses.

2. How do I manage production and distribution?

Manage the product management within a company dealing with new product
development, business justification, planning, verification, forecasting, pricing, product
launch, and marketing of a product or products at all stages of the product life cycle. And
also by the market analysis and company analysis. Distribution management manages the
supply chain for a business, from vendors and suppliers to manufacturer to point of sale,
including packaging, inventory, warehousing, receiving, along with plant, store location,
planning, the integration of information, customer service, shipping, materials handling,
and logistics. Distribution management helps keep things organized and keep customers
satisfied. Involves gathering and sharing relevant information that can be used to identify
key opportunities for growth and competitiveness in the market. And it more to the
commercial distribution or commonly known as sales distribution.

3. How will I manage my operations?

● Keep material moving
Trying to minimize the amount of time a job waits around in the process. This is
especially important in face-to-face services or when a product is made to order,
but using material quickly also matters in standard manufacturing. WIP is
essentially tied-up cash that could be used for better purposes.
● Keep the process simple
● Manage the supply chain
A product or service is only as good as the weakest link in the supply chain, the
network of suppliers that provide the materials, services, and logistics that support
an organization. If a company can make suppliers into actual partners in the
business and integrate them tightly into product development and productivity
improvement efforts, profitability follows.
● Improve quality
Figuring out what the customer actually wants and delivering it is everything in
business. Continuously improving the quality of processes is necessary to keep up
with changing customer expectations. Better quality can also reduce waste and
improve profitability.
4. How do I manage purchasing?
● Know vendors & optimize supplier relationships
Develop vendor expectations & selection criteria based on historical vendor
performance metrics. Develop a vendor scorecard with key metrics such as lowest
cost paid, on-time deliveries & lead time required, and monitor the scorecard
regularly.
● Establish a preferred vendor
List based on historical performance and on-time deliveries.
● Improve risk management
Mitigate risk by on-order and overdue shipment monitoring.
● Lower inventory investment
By conducting trend analysis to better predict future buying and production needs
& overstock analysis to reduce existing, non-performing inventory.
● Measure purchasing performance
Consistently review statistics and use decision support tools to constantly improve
purchasing and procurement activities.

5. How do I manage inventory?

● Use the FIFO approach (first in, first out)

Because it is a perishable product, goods should be sold in the same chronological
order as they were purchased or created. The best way to apply FIFO in a storeroom
or warehouse is to add new items from the back so the older products are at the
front.
● Identify low-turn stock
If the owner has stock that hasn’t sold at all in the last six to 12 months, it’s probably
time to stop stocking that item. Or consider different strategies for getting rid of
that stock, like a special discount or promotion, since excess stock wastes both
space and capital.
● Audit stock
● Use cloud-based inventory management
● Track stock levels at all times
● Hire a stock controller
Stock control is used to show the amount of inventory at a given time and applies
to all items from raw materials to finished goods. A stock controller processes all
purchase orders, receives deliveries, and makes sure that everything coming in
matches what was ordered.
 6. How will I manage my business?
● Have a written plan
Need a few pages outlining specific objectives, strategies, financing, a sales and
marketing plan, and a determination of the cash that needed to get things done.
Writing it all down is a crucial first step.
● Don’t marry your plan
Every great military general in history has known that even the best-laid plan
sometimes has to be thrown in the fire when the bullets start flying. Adjust, confront
and conquer.
● Keep the ego in check and listen to others
● Keep track of everything and manage by the numbers
● Delegate to employees and avoid micromanaging
● Use the internet
It is incredibly powerful and very cost efficient, but it takes time and some skill. It
is about creating a community, using social media networking such as Facebook,
Instagram, Youtube, Twitter and blogging to build rapport with the market. Need
to get on the train and do it, because all the competitors are.
● Reinvent the business
It is net profit, not gross revenue, that the owner wants to focus on. Separate from
history and create a new competitive advantage, be it a focused niche or super
service, but not by discounting.

PLAN FOR GROWTH THE.TEH

1. How can I plan for business growth?

● Establish a value proposition
For a business to sustain long-term growth, the owner must understand what sets it
apart from the competition. Identify why customers come for a product or service.
What makes it relevant and differentiated and credible? Use the answer to explain
to other consumers why they should do the business with the owner.
● Identify the ideal customer
Identify the certain audience. Who is that audience? Is that audience the ideal
customer? If not, who is serving? Nail down the ideal customer, and revert back to
this audience as to adjust business to stimulate growth.
● Define the key indicators
Changes must be measurable. If unable to measure a change, there will be no way
of knowing whether it’s effective. Identify which key indicators affect the growth
of the business, then dedicate time and money to those areas. Also, A/B tests
properly, making changes over time and comparing historical and current results
isn’t valid.
 ● Verify revenue streams
What are the current revenue streams? What revenues streams could add to make
the business more profitable? Once it identifies the potential for new revenue
streams, ask the owner itself if they’re sustainable in the long run. Some great ideas
or cool products don’t necessarily have revenue streams attached. Be careful to
isolate and understand the difference.
● Look to the competitors
No matter the industries, competition is likely excelling at something that the
company is struggling with. Look toward similar businesses that are growing in
new, unique ways to inform the growth strategy. Don’t be afraid to ask for advice.
Ask why the competitors have made alternate choices. Are they wrong? Or should
businesses be positioned differently?
● Focus on the strengths
Sometimes, focusing on the strengths, rather than trying to improve weaknesses ,
can help to establish growth strategies. Reorient the playing field to suit the
strengths, and build upon them to grow the business.
● Invest in talent
The employees have direct contact with the customers, so need to hire people who
are motivated and inspired by the company’s value proposition. Be cheap with
office furniture, marketing budgets and holiday parties. Hire a few employees, but
pay them a ton. The best ones will usually stick around if the owner needs to cut
back their compensation during a slow period. Need to adapt the plan to smooth out
the business’s inefficiencies, refine it’s strengths and better suit the customers , who
could be completely different from those from a vague, one-size-fits-all strategy.
Company’s data should lend itself to all strategic decisions. Specifically, the owner
can use the data from key indicators and revenue streams to create a personalized
growth plan. That way, the owner will better understand the business and
customer’s nuances, which will naturally lead to growth.

2. What are the challenges of growth?

● Cash flow management
● Responding to competition
● Nurturing a great company culture
● Learning when to delegate and when to get involved
● Keeping up with market changes
● Deciding when to abandon a strategy
 3. How will I expand my business?
● Get to know the customers
● Offer great customer service
● Nurture existing customers and look for new opportunities
● Use social media
● Attend networking events
● Host events
● Give back to the community
● Measure what works and refine the approach as going

4. Can I franchise or license my business?

I can license my business and also franchise my business in the future.

BUSINESS IDEA INTERVIEW Soultaste

BUSINESS IDEA

1. What skills do I have to start this business?

Skills to manage a business and have the ability and skills into that business, such as
management skills, leadership, and networking skills.

2. What factors will influence the demand for my product or service?

Factor of Quality

3. What type of business will I start?

Online Business

4. What type of business ownership is right for me?

Sole Proprietorship
OPPORTUNITY & MARKET ANALYSIS

1. How should I conduct market research?

Research from all the online platforms, especially social media.

2. Who are my competitors?

More experienced businessman whose industry is the same as the owner, which is food
industry.

3. What are my product and pricing strategies?

Cheaper than the market price.

4. How do I promote my product?

By inviting influencers to participate in promoting and updating on social media.

5. How do I sell my product?

By Online and Offline

FINANCIAL STRATEGIES

1. What are my business costs?

Equipment, Inventory, Office Space, Marketing, Payroll, Taxes, Shipping.

2. Where will I get the capital?

From the business owner’s own savings.

3. How do I measure the economics of one unit?

By looking at the sales progress.

4. How do I develop an income statement and track cash flow?

By checking my business sales within one day.

5. How do I develop a balance sheet?

By accumulating income.

6. What is my break-even point?

There is no lack or loss and feeling satisfied.

7. What kind of accounting system should I use?

By accumulating income and expenses every day if there is a transaction.
ORGANIZATIONAL STRUCTURES

1. How should I staff my business?

By managing, seeing the market and business opportunities, not wanting to be left behind
with trends.

2. Do I need the help of outside experts?

No

3. How do I train and motivate employees?

By motivating and often providing input and criticizing when they are wrong.

4. What organizational structure is right for my business?

Functional Structure

BUSINESS MANAGEMENT

1. How do I manage expenses, credit and cash flow?

By creating and viewing from financial reports.

2. How do I manage production and distribution?

By organizing and controlling it.

3. How will I manage my operations?

By coordinating with my courier and employees.

4. How do I manage purchasing?

By monitoring from reports.

5. How do I manage inventory?

By monitoring and controlling it.

6. How will I manage my business?

I will manage my business at an affordable price so that the surrounding community is
interested and sells daily needs.
PLAN FOR GROWTH

1. How can I plan for business growth?

By planning for the future to be even better in terms of production, distribution and
marketing.

2. What are the challenges of growth?

Competition

3. How will I expand my business?

By regulating and viewing markets and trends.

4. Can I franchise or license my business?

It can franchise or license my business in the future.