COURSE TITLE: THE

ENTREPRENEURIAL MIND
COURSE CODE: ENT 101

COURSE DESCRIPTION: This course is design to train the mindset of students by developing their
attitude to become motivated entrepreneurs. Students will be immersed in situations
that could change their lives and inspire them to address these changes using their skills
to carefully evaluate opportunities, productively resolve complications, effectively
communicate with people, and effectively work as an individual and in teams as how it
affects the organization.
PRE-REQUISITE/CO-REQUISITE

COURSE OBJECTIVES:

Comprehend the importance of entrepreneurship and its impact to the economy

Know the activities in their address for an entrepreneurial career
Design a viable business plan and its effectiveness

COURSE CONTENTS

Module 1: The Concept of Entrepreneurship and its Role to the Economy

Module 2: Different Types of Businesses, Its Challenges and Opportunities Contents of the Business Plan

Module 3: Contents of the Business Plan, Accounting and Legal Requirements of a Business

Topic 3

BUSINESS + PERSONAL PLAN

- Any firm needs business plan, whether a written document (for outside investors) or
a simpler outline of a business model (for internal guidance).
- Business plans provides direction where the firm is going to determine if the
personal goals of partners fit so the business fits in one direction and focus.
- Example: independence from his or her family, to gain control of a business, to
prove something to self or others, to be trusted with certain responsibilities.

Three Essential Elements to Create Profit (Wealth Conversion Principles)

- Every business starts with an idea
1. CASH – it is needed to bring the idea to life. The cash is used to buy inventories.
2. INVENTORIES - inventories are sold often with some credit terms.
3. RECEIVBLES – when receivables are collected, they are converted back to cash.
- It is a cycle with each cycle adding greater value to the firm.
 -Potato corner started in 1992 with a P36,000 capital from each of the four founding
partners who were all employed at that time. It was a good thing their new business
was an instant success that brought in cash. Jorge Wieneke thought the idea of the
flavored French fries while Danny Bermejo was the first to go full time to manage the
business via franchising.

The wealth conversion principle is the means for an entrepreneur to add value. As the
cycle continues, more cash flow and wealth are created. Without cash flow and wealth
for the company, noting could be shared with its employees and community.

Three General Requisites to make Wealth Conversion

1. SQUAD - Before the entrepreneur converts cash to inventories, they need to form a
team (or a squad), which include his or her business partners. This is important to avoid
dissolution since there some disagreements with business partners. Think of what
resource is lacking in your current set that is needed to complete the enterprise. This is
largely considered as human resource challenge.

2. SPREAD – Before an entrepreneur converts inventories to receivables by way of

transactions, they need to ensure that the products sold are priced higher than the cost
it was bought or manufactured, with the difference known as spread or margin. This is
largely a marketing challenge.

3. SPEED – In order an entrepreneur to convert receivables back to cash by way of

collection, speed is a system to manage account receivables effectively. This is largely an
operation and financial challenge.
-Profit in the form of account receivables and unless collected, cannot be considered cash.

The Key Factors of Successful Entrepreneurship

1. Commitment – is a strong drive to achieve goals and objectives through focus and pro-
active follow through.

2. Coordination – is the organization of different people or groups coming from various

functions to attain efficiency, effectiveness and/or impact.

3. Competency – is having a combination of ability, attitude and behavior to do a particular

role or job repetitively well.
The Four Gate Model to Prosperity.

I. Preparation – It is composed of the 3Ms: Money, Model and Mentors. The entrepreneur
needs a reasonable intelligence quotient in order to learn and understand what it takes to
make a business successful. One must have a due diligence to capture customer’s needs,
determine feasibility, understand consumer decision journey

1. Money – is the cash component that creates the cycle of wealth conversion and
prosperity.
2. Model – is the business model or the big picture plan to generate sales revenues, profit,
cash flow, growth and how to scale up.( Waters Philippines)
3. Mentors – are experienced advisers who can add value to the entrepreneur by giving
sound guidance to increase to competency and reduce the risks and help open
opportunities to the new entrepreneur.

II. MARKETING – is the second gate means that the entrepreneur need reasonable creativity of
Mindset, Market and Message.

1. Mindset – is all about beliefs that innovation is better than commoditization, that being
an innopreneur is better than entrepreneur. Unique Selling Proposition (USP) is selling
different product not the same thing as anybody else. (Ex. Frenchbaker)

2. Market – is the set of buyers that an entrepreneur focuses attention from the new
market in the beginning, and then adjacent markets for future expansion.

3. Message – is the brand positioning that will be communicated to persuade the target
customers to buy. (Example: CDO Foodsphere)

III. EXECUTION

1. Machinery – is about an organization structure that can deliver the value planned, the
organizational structure can only be identified after the value proposition is formulated.
(Example: Center for Agricultural Rural Development –CARD; Aris Alip).

2. Methods – are about systems and processes that allow the entrepreneur information
and control.
3. Management Skills – the ability to carry out the plans through people rewards and
leadership.

IV. SELF-LEADERSHIP

1. Moving Forward – is about having gift to continue the business despite obstacles.
(Example: Fly Ace Corporation)
 2. Mission – is about purpose or the reason why the business exists beyond making profit.
It motivates entrepreneurs in knowing that their concern are not just for profit but also
for the benefit of others.

3. Mastery – is about building capabilities and eliminating the gap between the know-
how. Mastery includes knowing the self, environment as well as the operations.

PERSONAL CHARACTERISTICS OF ENTREPRENEUR

ACHIEVEMENT CLUSTER
1. Opportunity Seeker
a. Perceives and acts on new business opportunities
b. Seizes unusual opportunities to obtain financing, equipment, land, work, space
or assistance
2. Persistent
a. Takes repeated or different actions to overcome obstacles
b. Makes sacrifices or expends extraordinary effort to complete a task
c. Sticks to own judgment in the face of oppositions or disappointments
3. Committed
a. Accepts full responsibility for problems encountered
b. Helps own employees to get the job done
c. Seeks to satisfy the customer
4. Risk-Taker
a. Takes moderate risks
b. Prefers situations involving moderate risk
5. Values-Efficiency and Quality Oriented
a. Always strives to raise standards and aims for excellence
b. Strives to do things better, faster, and at a lower cost

PLANNING CLUSTER
1. Goal-Seeker
a. Sets clear and specific objectives
b. Sets clear and long term goals
2. Information-Seeker
a. Personally seeks information on clients, suppliers and competitors
b. Seeks expert to render business or technical advice
c. Use contacts or information networks to obtain information
3. Systematic in Planning and Monitoring
a. Develop logical, step-by-step plans to reach goal
b. Looks into alternatives
c. Monitors progress and switches to alternative strategies when necessary to
achieved goals.
POWER CLUSTER
1. Be persuasive and good in networking
a. Uses deliberate strategies to influence or persuade others.
b. Uses business and personal contacts to accomplish objectives
2. Possess strong self-confidence
a. Believes in self
b. Express confidence in own ability to compete a difficult task or meet a
challenge
PERSONAL AND ENVIRONMENTAL FACTORS TO BE CONSIDERED

1. Personal Interest – it is the deciding factor in getting into business. It will drive him to
engage into something that will earn him an income.
2. Knowledge/Talent – It serve as his asset in venturing into business.
3. Training/Work Experience – The kind of training or experience of an individual
influences his desire to go into business.
4. Government Support/Assistance Programs – Government support is available in terms
of technology, marketing or training.
5. Rate growth of business – Venturing in business should have to be positive that
indicates profit.
6. Capital return – Consider the rate of return of the business as you should earn more
than being as employee.

ENTREPRENEURIAL PERSONALITY

1. High need for achievement – the strong desire of individual to pursue his dreams and
achieve his goals.
2. Strong belief that they can control their destiny – “Destiny is not a matter of chance, its’
a matter of choice; it not a matter f a thing to be waited, it is a matter to be achieved” –
William Jennings Bryan.
3. Risk – Taker – Business risk can be avoided by careful planning, insurance and being
alert of what is happening around.

PRELIM