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CHAPTER 1 : Becoming an Entrepreneur

Business Man a. Starts a business from an existing idea

b. Traditional
c. Avoid taking risks
d. Profit oriented
e. Market player

Entrepreneur a. Starts a business from a unique and innovative idea

b. Revolutionary
c. Risk taker
d. People oriented
e. Market Leader

Entrepreneur Possesses managerial skills and decision-making skills

needed to run a business enterprise, key person in the
entire firm

Managerial Skills Developed through experience, education, and training

External Considerations Social, Political, Environmental, and Cultural Factors

Richest Business Man Henry Sy

Second Richest Business Man John Robinsons Lin Gokongwei Jr.

YAHOO Yet Another Hierarchical Officious Oracle

Factors of Production a. Land

b. Labor
c. Capital
d. Entrepreneurship

Land Natural resources utilized in business

Labor Human effort exerted in production

Capital Man-made resources used in production

Entrepreneurship Make decisions on how effectively and efficiently utilize the

factors of production so that the firm can be successful

4P’s Protfit, Power, Prestige, Privilege

Entrepreneurial Traits Predisposition to be a boss, being energetic, willingness to

risk money and security, ability to inspire others, strong-
willed, willing to devote a disproportionate time to business,
fiercely competitive, “never-say-die” attitude

Entrepreneur’s Alphabet Serve as guide on the characteristics of business people

Ability to Organize Resources 6M’s : Manpower, Machine, Materials, Money, Moment,

Methods

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Demands Quality Results Aim for perfection and quality at all levels of production

Excited to Compete Competition energizes entrepreneurs, use it as a challenge

to improve and enhance the commodities they offer

Finds Opportunity in Crisis Times of crisis may be the best moment to come up with a
new, profitable creation or innovation that respond to
emerging needs

Inquisitive in Pursuing Able to ensure that their creations or businesses can evolve
Improvements and withstand the test of time

Jack of All Trades Those who want to learn as much as possible so they do not
have to depend on anyone, should be flexible and must be
familiar with all the processes and the ins and outs of their
company

Legitimate No one is above the law, with profit comes state obligations,
and entrepreneurs should comply with government
regulations accordingly

Networker Love connecting with different people, build bridges instead

of walls

Questioning the Status Quo Never satisfied with their status quo (situation now), they
are change agents who are passionate about moving ahead
or being the cause of change

Resourceful Always see the glass as half full rather than half empty, use
their imagination, find ways to effectively utilize resources

Undivided Focus When they work, they work. When they rest, they rest.
Focused in their own world and in achieving goals

Visionary Know where they are going, they make things happen, have
a clear picture in mind on what kind of future they want and
have a great vision for their business

Winning Attitude Born to win. Driven by their goal-winning-and even if they

lose, they are able to bounce back

Yearning to Learn Never stop learning, consider life as a continuous learning

process, never stop entertaining new knowledge

CHAPTER 2 : Starting a Business

I.

2.1 Turning Ideas Into Reality Capacity as an entrepreneur, trends in the business, and
developments in the national and global economy

2.2 Factors to Consider Before : Business Name = appropriate to your product, easy to

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Starting a Business read, easy to remember, catchy name

: Need to register your business name and secure the
necessary permits in the locality where it would operate

2.3 Legal Structures Sole Proprietorship, Partnership, Corporation

Sole Proprietorship Easiest legal structure to start, complete control of the

business, fully liable for all debts that your business will
incur. If the business unable to meet its financial
obligations, your creditors can acquire personal assets

Partnership Enhanced ability to raise money and recruit and motivate

key people, operation is divided among partners

Corporation Exists separate from its founders since the company is

owned by its shareholders and run by a board of directors
elected by the shareholders, the corporation must pay tax
on income as a separate legal entity. (hindi pwedeng
habulin ang shareholders if walang personal documents na
pinirmahan)

2.4 Planning, Organizing, and a. Planning Your Business Enterprise

Managing Business Enterprise b. Organizing Your Business Enterprise
c. Managing Your Business Enterprise

2.4.1 Planning Thinking ahead (objectives, strategies, finances,

production, marketing, profit prospects, growth
possibilities)

Business Planning Attaining your goals and the ways to accomplish such
goals. Setting a time frame is essential in achieving goals.
Maintaining consumer satisfaction

Basic Principles in Planning a. Planning must be realistic

b. Planning must be based on felt needs
c. Planning must be flexible
d. Planning must start with simple projects

2.4.2 Organizing Presumed that you have already conducted a feasibility or

market study

Organization Composed of two or more persons who work together to

achieve a common set of goals and objectives. Important
rule: appropriate development of human resources. Every
organization has a structure = organizational chart

2.4.3 Managing Resources require proper allocation and efficient use to

effectively achieve business goals

Basic Functions of Management a. “PLANNING” Establish the goals of the enterprise and
develop plans to attain these goals
b. “ORGANIZING” Organize people and other resources to
achieve goals

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c. “LEADING” Lead and motivate people toward the goals of

the enterprise
d. “CONTROLLING” Maintaining sufficient control system to
ensure that the enterprise is moving well toward its goals

1) “Planning” Strategies in achieving and maximizing profits

2) “Organizing” Enterprise’s and activities must be group

3) “Leading” Good leader and an effective motivator

4) “Controlling” Evaluate and regulate business activities to ensure that the

enterprise achieve its goals

2.5 Financial Management, a. Financial Management for Business Enterprise

Production, and Marketing For b. Production of Goods and Services
Your Business Enterprise c. Marketing for Business Enterprise

2.5.1 Financial Management “Lifeblood”. Activities that are concerned with securing
funding and using it wisely. Efficiently use money to realize
the goals of the enterprise

2.5.2 Production of Goods and Process of converting economic resources into goods and
Services services. Principal actor is the entrepreneur

Cost of Production Every product produced, there is a corresponding cost

Quality Often the name of the game. Set standards

2.5.3 Marketing Set of activities directed at facilitating and accomplishing

exchange between sellers and consumers of goods and
services

Integration of Functions Market research, product of development, advertising,

customer service, distribution, and selling

Consumer Oriented Satisfy such need or want of customers

Marketing Plan Outline of actions designed to achieve a specific set of

goals

II. Battles I Should Win as an Entrepreneur

Battles that would Encounter a. Strategy

b. Environment
c. Corporate Social Responsibility (CSR)
d. Business Ethics

I. Strategy Plan to design something

Tactic Specific, individual

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Direction Where your business is trying to get to in to the long run

(goals and objectives)

Market(s) Places where your business will compete (industry)

Scope Activities involved in the market (resources)

Advantages Areas where your business can perform better against

competitors (competitive advantage) (features, services,
prices, product, performance)

Resources Necessary skills, assets, finances, facilities, technical,

competence

Environment External factors that affect business to become competitive

Stakeholders People who have power and expectations in and around

your business (managers, investors, customers, suppliers,
government)

II. Strategy At Different Levels of a. Operational Strategy

Business b. Business Unit Strategy
c. Corporate Strategy

Operational Strategy By department planning (methods to implement the tactic)

Business Unit Strategy Concerned with how your business compete successfully in
a particular market

Corporate Strategy Business you should be in growth, stability, retrenchment

(boss, CEO, founders)

III. Strategic Management : Making strategic decisions

a. Strategic Analysis
b. Strategic Choice
c.Strategic Implementation

Strategic Analysis Looking, analyzing, and understanding the events

happening outside your business organization (ano ang
pwedeng maka-affect)

Strategic Choice Selecting appropriate business strategy (ano ang pwedeng

solution)

Strategy Implementation Choose one that is suited (increase price, change supplier,
lessen manpower)

IV. Strategic Thinking versus

Strategic Planning

Strategic Thinking WHAT your business organization should look like

(visualize, imagination)

Strategic Planning HOW your business organization will get there (ways,

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execution)

V. Winning Strategy Pursue vision with passion and persistence

VI. Red Ocean vs. Blue Ocean Market Universe

Red Ocean Industries in existence today (the known market space),

saturated market, serve existing demand, RYANAIR
(aircraft)

Blue Ocean Industries not in existence today (the unknown market

space), less competitors, uncontested, provides new
demand, CIRQUE DU SOLEIL (circus)

VII. Elements of Business

Strategy from Sun Tzu’s The Art
of War

Mutual Philosophy and Purpose You work as a team

of the Group

Environment Not controlled

Situation Controlled

Leadership Person leading to make the work easy

Art Unique, be remembered by people

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