Entrepreneurship

and the
Entrepreneurial
Mind-Set
Is this glass half full or half empty?
 Ten Deadly Mistakes of Entrepreneurship
Business entrepreneurship fail because:
 Management Mistakes
 Lack of Experience
 Poor financial control
 Weak marketing efforts
 Failure to develop a strategic and effective plan
 Uncontrolled Growth
 Poor location
 Improper inventory control
 Incorrect or unsuitable pricing
 The inability of to move into entrepreneurial thinking mindset
from the previous secured permanent managerial position held.
 How to Avoid Failure in an Entrepreneurial
Business

Know your business in depth.

Develop a good, effective and solid Business Plan.
Manage your financial resources effectively.
Have a thorough and complete financial statement.
Learn, hire and manage people effectively.
Keep physically fit, consume healthy foods, and avoid
addictive consumption of cigarettes and alcohol.
Development of a Business Plan
What is a Business Plan?
-Is a written document that describes all the steps
necessary in opening and operating a successful
business.
-It describes all the relevant external and internal
elements involved in starting a new venture.
-It is sometimes referred to as the game plan or
road map.
-What is a Business Plan?
-It is a formal statement or document that contains
the plan for the business that is to be launched, if it
is a start-up business, or of the expansion of the
business, if a business, if a business already exists.
-It contains a set of business goals and the plan for
reaching those goals.
-It evaluates all the aspects of the financial viability
or worthiness of the planned business. (pg. 81
textbook)
Importance of a Business Plan:

1. It makes you think about all aspects.

2. It may help you secure financing for your
business.
3. It helps to communicate your ideas to others
4. It can serve as a tool for managing your
business.
Content of a Business Plan
1. Industry Analysis – market needs, status of competition, determine
possible product/s, service/s that will meet the need, customer
requirements. Use SWOT analysis or PEST.
2. Production Plan – manufacturing process, physical plant, machinery
and equipment needed, raw materials
3. Operational Plan- process flow of orders for goods and/or services,
operational hours, technology needed
4. Marketing Plan – 4 P’s (Product, Price, Place, Promotion)
5. Organizational Plan – Identification of owners/partners, roles and
responsibilities of the members of the organization
6. Financial Plan – Income statement and balance sheet, cash flow
projections
Establishing your business begins with
choosing the Right Name

A Business Name provides a company a solid identity, and

makes your product or services stand out in the minds of
your customers.

Types of Names:
1. Neologisms – new words created for a specific purpose
(Ex. Jolibee, Kodak). This is very expensive and should
not be considered without a big advertising and
promotion budget.
2. Commonly used words (Ex. Sari-sari –the clothing shop)
Choosing a name for your business should:
a. They do not mean anything and are specifically coined
for companies.
b. They are distinct and cannot be easily copied

It is advisable to come up with 5 to 10 possible business

name. Afterwards, choose the one with the most
characteristics from the list below.
a. Distinct. Make sure it is not associated with another
company, product or service.
b. Has a pleasant meaning. The name should lend a
positive and relevant meaning to your company and not
offensive.
Passes legal muster. The Department of Trade and Industry
(DTI) requires business owners to come up with four (4)
preferred names. This facilitates business registration, in
case the name you like has been registered by another
entity.
d. Easy recall. Complex sounding names may work against
the primary intent of customer recall.
e. Can be pronounced easily. Products that is difficult to
pronounce can turn off potential customers.
Flexible. In mind of a possible future business expansion.
g. Customer appropriate. If you want a market that is high-
end, go for a more serious name. Do not name your
computer business Betty Boop.
h. Elicits pride and enthusiasm. The name should make you
beam with excitement. Never choose on that does not elicit
positive response from people.
After registering your business with the DTI, be on the look
out for other business imitating your name.

For additional protection you may want to consider getting

a trademark at the Intellectual Property Office.
A trademark is an optional registration that provides you
more comprehensive protection for your logo, design, and
colors of your business or brand.
 Factors to Consider in Product Selection
(What product to sell?)
1. Marketability – Determine what market you want to sell
to.
Market means a group of current customers, prospective
customers, and non-customers who share a common
interest, need, or desire; who have the money to spend
to satisfy needs or solve problems; and who have the
authority to make expenditure decision.
2. Profit Margin – refer page 53 of your textbook.
3. Consumable – product with recurring sales value or a
consumable item that needs to be replaced on a regular
basis to establish long term sales.
What’s popular – new trends , hot product
5. Competition – more unique product to have less chance
of competition .
6. Private label – make the item yourself and or brand an
item made by another person.
7. Quality – customers would be looking, as your reputation
is on the line.
8. Diversity – Keep your product simple in the beginning.
Add new product line or that would complement with the
first one.
Some questions to keep in mind while selecting products for
sale:
1. Would you buy it and use it yourself?
2. Can you see yourself getting excited about this product
or service
3. Would you sell it to someone you know?
4. Is there a real need for the product in today’s market?
5. Can you imagine selling this item for the next several
years?

Believe in the product you are selling. If you don’t believe in

the product yourself, you won’t be successful in selling
them.
The Business Plan as outlined:
I. Executive Summary VII. Organizational plan

II. Statement of Financial needed - Organizational structure

III. Statement of Confidentiality - Job description, Salary grades/

Report benefits

IV. SWOT Analysis/ Industry Analysis VIII. Financial Plan

with competitors - Calculate break-even analysis; -
V. 4Ps of the Marketing Plan ROI and ROE;

- Choosing products/services to sell; - Payback period - Cash flow;

Pricing ; Distribution; Promotion - pro-forma income statement
VI. Production/Operational plan and balance sheet;

- Flow chart 1X. Risk Assessment

- Plant/Store Design -Risk assessment strategy