ENTREPRENEURSHIP

1st Quarter
LESSON 5
Week 5
RECOGNIZE THE POTENTIAL MARKET:
SCREEN THE PROPOSED SOLUTION/S BASED ON
VIABILITY, PROFITABILITY, AND
CUSTOMER REQUIREMENTS
 OBJECTIVES

At the end of the lesson the

student must be able to:

1. Discuss the business opportunity

elements in screening the
business
2. Give the parts of a business plan
3. Value the importance of the
business plan in starting a new
venture
 INTRODUCTION

As the saying goes, the most

difficult part of every task is where
and how you start. The same is true
with entrepreneurship. You may have
all the resources needed to operate
a new venture, but it will never be
easy to start one.
 INTRODUCTION

Reflect on the following questions as you continue in starting

your business:

* How many Filipino businessmen today do you think

also underwent the entrepreneurial process before they
become successful entrepreneurs? Are you ready to
be one of them?

* Do you think the product or service planning and

development process is really crucial for all
entrepreneurs? Are you ready to take the risk and
responsibilities?
 INTRODUCTION

If you answer all YES to the questions there are no

doubt that you are willing to take the risk and become an
ENTREPRENEUR. Recognizing the potential market is really
one of the most difficult tasks to do. It involves tedious
research and analysis to ensure success.

The moment you started the module,

you are already putting your business
into writing. Let’s continue.
 INTRODUCTION

By now you already feel overwhelmed with how vast

opportunity seeking is, this concept has been inculcated
to you to see the universe of opportunities an
entrepreneur can drive from the macroenvironmental
and microenvironmental sources.

The key here is in the effective

choosing or careful diligences in
choosing the right ideas.
 INTRODUCTION

Entrepreneurs should start with the big picture. This is

the best way in ensuring that the entrepreneur has
scanned the best potential business to venture into.

Once the compelling

opportunities are identified, as
the screening them will be the
next crucial consideration.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS

The entrepreneur should know why and when to say no to an

opportunity. That’s why you have to SCREEN them.

OPPORTUNITY SCREENING is the process of cautiously selecting the

best opportunity. The entrepreneur should say NO to an
opportunity if it does not contain any of these business opportunity
elements:
1. Has superior value to customers
2. Solves a compelling problem, issue, a need,
or a want
3. a potential cash cow
4. Matches with the entrepreneur’s skills,
resources, and risk appetite.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS
Business opportunity elements:

1. HAS SUPERIOR VALUE TO CUSTOMERS

Superior value is created when

customers are willing to pay more for
your product or service than
competitors', or when they prefer
your version of a product or service
to all others because it meets their
needs better and maybe even
exceeds their expectations.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS
Business opportunity elements:

2. SOLVES A COMPELLING PROBLEM, ISSUE, A NEED, OR A

WANT

Example : During your observation,

there is only one barber shop in
your barangay. Pursuing a business
like this will solve the problem of
shortage in that service business.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS
Business opportunity elements:

3. IS A POTENTIAL CASH COW

A cash cow is a metaphor

used for a business or a
product, which exhibits a
strong potential in terms of
returns or income.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS
Business opportunity elements:
4. MATCHES WITH THE ENTREPRENEUR’S SKILLS, RESOURCES,
AND RISK APPETITE

As discussed before, it’s necessary that

the business you choose suits your
personality and skills.
Example. A landscaping business is
great for a person who loves
gardening as a hobby.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS
Putting your ideas, opportunities and information together is
called making a Business Plan. As discussed on the last module,
preparation of the business plan is the second stage of the
entrepreneurial process. You need to prepare the Business Plan
because it helps you to:

 DECIDE if you should start your business

or not. Starting a business will change
your life completely. Therefore, you
need to make sure that you make the
right decision. The Business Plan will help
you to judge whether or not to starting
a business is the right decision.
 BUSINESS OPPORTUNITY ELEMENTS IN
SCREENING THE BUSINESS

 ORGANIZE your opportunities, ideas

and information so that you will see
how to start and run your business in the
best possible way. The business plan
follows a standard sequence of
relevant topics which help you to
visualize the road ahead.

 PRESENT make your business plan in

the actual dream.
 BUSINESS PLAN

WHAT IS A BUSINESS PLAN?

A Business Plan should cover all the

important aspects to be considered
before starting a business.
 BUSINESS PLAN

PARTS OF A BUSINESS PLAN

I. Executive Summary
II. Study Background
III. Macroenvironmental and
Micromarket Analysis
IV. Marketing Plan
V. Operational/Organization
Plan
VI. Financial Plan
VII. Appendix
 BUSINESS PLAN

Main parts of
the Business Purpose
Plan

The executive summary is an outline of your business

idea. You will, therefore, need to complete all the
Executive other parts of the business plan before doing the
Summary executive summary. It must be clear and organized
because it is the first impression one gets on your
business idea.
 BUSINESS PLAN
Main parts of the
Purpose
Business Plan

All business ideas are based on an idea and opportunity.

Think about the concept of your business so that you
can put your information in writing at the beginning of
your Business Plan.
Study
Background These include the main business opportunity or idea,
such as nature of the business, the vision and mission of
your business and objectives of the business.
 BUSINESS PLAN
Main parts of the
Purpose
Business Plan

Study
Background
 BUSINESS PLAN
Main parts of the
Purpose
Business Plan

Sample Vision, Mission and Objectives of Pampanga’s Best

VISION
Pampanga’s Best envisions to give every Filipino household
and individuals in East Asia, Middle East, North America, and
Europe, the pride in eating its famous and varied Tocino,
Study Longaniza, and Tapa and other frozen deli.
Background MISSION
By using the best and advanced technology and processes it
shall exceed the standards of the Good Manufacturing
Practices in assuring the quality of the products, thereby
creating excellent value for its customers; and satisfied and
elated customers.
 BUSINESS PLAN
Main parts of the
Purpose
Business Plan
OBJECTIVES

• Increase commitment to quality assurance and exceed

customers’ expectations
• To be the industry’s leader in technology and product
Study innovation
Background • To be the first local manufacturer to receive accreditation
from the targeted countries for distribution
• To increase product awareness in the market
• To create an excellent brand image in the global market

Source: www.pampangasbest.com
 BUSINESS PLAN
Main parts of the
Purpose
Business Plan
As mentioned earlier, the first step in venturing into a new
business is OPPORTUNITY SPOTTING AND ASSESSMENT. This
includes the Macro and the Microenvironmental Factors.

Macroenvironmental For Macroenvironmental Analysis:

& Micromarket 1) STEEPLED
Analysis
For Microenvironmental Analysis:
1) Consumer preferences, interests, and perception
2) Competitors
3) Location
 BUSINESS PLAN

Main parts of the

Purpose
Business Plan

Marketing is everything you do to find customers and

Marketing Plan satisfy their needs while making profit. This part will be
discussed on the next module.

Operation and
Manpower, machinery, materials and methods that
Organizational
will help you to start your business.
Plan
 BUSINESS PLAN

Main parts of the

Purpose
Business Plan

Starting capital to run the business and how will you

Financial Plan sustain such business in your daily operations. And the
preparation of financial statement.

References should have given appreciations and

Appendices
mentors who help you out in starting your business.
 BUSINESS PLAN
In this module, you have understood the importance of the
entrepreneurial process as a helpful scientific process in guiding the
entrepreneur to follow the right way of establishing a business
venture.
You understood that scanning the market
environment or spotting the opportunities is
the first step in the entrepreneurial process.
This process is one of the most difficult tasks
in entrepreneurship, as the entrepreneur
needs to apply so many disciplines to
understand the influencers in the
environment and how these will affect the
new venture.
 BUSINESS PLAN

You have scrutinized the 3s of opportunity spotting,

which is the procedural approach to finally come up with
an attractive and refined product or service.

The seeking process is vast and

requires macroenvironmental,
microenvironmental and internal
scans. This process identifies what
is the most compelling opportunity
out of gazillion opportunities.
 BUSINESS PLAN

The screening process

validates the attractiveness
of the opportunity based on
specified factors.

And last, the seizing process is the refinement of the

opportunity supported by customer insights. The opportunities
in entrepreneurship are countless, but the entrepreneur should
always apply due diligence to understand the risks and ensure
the success of the new venture chosen.
 BUSINESS PLAN

After going through the 3s

(Seeking, Screening and Seizing)
of opportunity spotting and
assessment, the entrepreneur
needs to be ready to prepare for
a business plan.

When you have your own venture in the near future, you will realize
the importance of these 3s of opportunity spotting, and that these
are practical and methodical approaches to ensure business
success, instead of just purely relying on your guts and emotions.
 REFERENCES

Batisan, R. Entrepreneurship
Generate Your Business Idea, International Labour Organization (ILO), 2015
Otchengco, A. (2020). Market Advantage