WEEK 2 3.

Acquires, develops & sharpens

entrepreneurial skills.
ENTREPRENEURIAL MIND
 It is the way of thinking. Optimistic or
pagiging positive, decisive nag-accept
ng responsibilities on the result of PERSONALITY TRAITS OF
ventures. ENTREPRENEUR
Quality of Entrepreneur  Decisiveness – to make decisions
1. Open minded quickly.
2. Problem identifier/ Solver  Confidence – You learn to act with
3. Passionate confidence, the second characteristic of
4. Confident & discipline the entrepreneurial mindset. And one of
5. Risk Taker the most important qualities of an
6. Constant flow of ideas entrepreneur.
7. Creative - It is essential that you get used to
8. Competitive uncomfortable feeling knowing that you
9. Opportunist don’t know what you-re doing.
10. Determination - The difference between appearing
Function of Entrepreneur good at bad at something is often a
matter of acting confidently.
1. Sales Person  Accountability – The entrepreneurial
2. Goal Setter mindset comes from taking
3. Leader responsibility for your actions and
4. Risk Taker outcomes.
5. Decision Maker - The entrepreneurial mindset requires
6. Identify and Solves Problem you to take complete control and hold
Four Competencies yourself accountable to your outcomes –
both good and bad.
1. Entrepreneurial Concept
 Resilience – As an entrepreneur, you
2. Principles
will need to deal with making mistakes
3. Character Traits
and failing. They are inevitable and part
4. Skills
of your growth.
Competition Advantages  Humility – is freedom from pride or
1. Provide outperform competitors arrogance, and it ties all of the
2. Distinguishes the venture characteristics of entrepreneurship.
3. Achieve superior performance in From decisiveness to confidence,
industry humility will keep you focused and
4. Produces of product or develops centered.
production method that can hardly be - From accountability to resilience, you
copied by competitors. will continue to move forward through
failure, mistake and upsets. This is
Total perspective of successful
accomplished with humility.
Entrepreneur
1. Fully understand the concept & CAREER AND JOB OPPORTUNITIES
principles. OF AN ENTREPRENEUR
2. Equip with character traits.
Careers in Entrepreneurship:
  Gain Experience
- Individual can join some start-up
company first and understand the
functioning and challenges faced by the
owners.
- Work with entrepreneurship network in
a city to get experience.
- Work in incubation centres in colleges
and institutes.
- Shadow the new age entrepreneur
working in the company.
- Join the organization which promote
‘Intrapreneurship”
Here are few suggestions, if you wish to start
your own venture
1. Start technology-based venture.
Technologies considered here, are
Artificial intelligence, ERP, Machine
learning, Analytics, Big data and
Robotics.
2. Start financial consulting firm.
3. Going for a Partnership with new small
businesses.
4. Service oriented start-ups: service
oriented are getting a strong hold and
recognition in market.
5. Innovate new product by studying the
market and start new business.
6. Participate in business plan competition
and network with angel investors and
start own business.
SOCIAL ENTREPRENEUSHIP
An approach by individuals, groups, start-up
companies or entrepreneurs, in which they
develop, fund and implement solutions to
social, cultural, or environmental issues.
 This concept may be applied to a wide
range of organization, which vary in
size, aims, and beliefs.
 For-profit entrepreneurs typically
measure performance using business
metrics like profit, revenues and
increases in stock and prices. Social
entrepreneurs, however, are ether non-
profits, or they blend for-profit goals with
generating a positive “return to society”
CAUSES OF BUSINESS FAILURES
Outline of Major Causes of Business Failure
1. Not Seeking Professional Advice
2. Lack of Good Customer Care
3. Copying Others
4. Lack of Experience
5. Unaccountability
6. Lack of Personal Growth
7. Poor Location
8. Lack of Focus
9. Wrong Expectation
10. Quitting Too Soon
WEEK 3
EFFECTIVE COMMUNICATION
 To understand and understood
 Communication system like emails,
viber, telephones.
APPLICABLE COMMUNICATION THEORY
1. Non Verbal – it is element in speech
such as hand gestures, state of
emotions, body language, look of
sender eyes, and tone of voice.
2. Communication Accommodation
Theory –.posits that throughout
communication people will attempt to
accommodate or adjust their method of
speaking to others.
3. Face Negotiation Theory – it describes
how people from different culture
manage conflict negotiation to maintain
‘face’. Ex. Tatlo kayong magkakaibigan,
yung dalawa visaya nahuusap at ikaw
naman ay Filipino, yung dalawa para
maitindihan mo sila yung mag-aadjust
para maintindihin mo sila to avoid
conflict.
CRISIS COMMUNICATION THEORY – refers
to special wing which deals the reputation of
individuals as well as the organization. Ex.
Pansit Canton issue solved by the commercial
“ikaw pa rin ang pipiliin ko”
Need for Crisis Communication
CRISIS COMMUNICATION PROCESS
1. Employees should not ignore any of the
external parties and important clients.
2. Don’t criticize individuals.
3. Effective communication must be
encouraged at the workplace during
emergency situations.
4. Information must flow across all
departments in its desired form.
5. Crisis communication specialists must
learn to take quick decisions.
6. Make sure information in kept
confidential.
7. The superiors must evaluate the
performance of employees on a regular
basis.
TO SUCCEES AS AN ENTREPRENEUR,
KNOW YOUR CUSTOMER
A. Know your Customer
One of the successes of an entrepreneur is
to know their customer. When you know the
people, you serve better, you will be able to
provide them the solution that they need.
For instance, 80 percent of your sales
should originate form 20 percent of your
customers. To win and retain these
customer, you need to provide the, with
exceptional services and outstanding
customer service, in addition to
understanding their buying habits, wishes
and wants.
B. Success Tips for Startups and
Entrepreneurs
1. Have confidence in yourself
2. Network with the right people
3. Act Quickly
4. Nurture your Team
5. Learn from mistakes
6. Know your industry
7. Leverage you employee power
8. Offer more than expected
9. Get customers’ input
10. Plan for funding
11. Invest time in your business
12. Take risk
13. Challenge yourself
14. Have passion
15. Visualize Goals
16. Seek Partnership
17. Increase your business
knowledge
TURNULENT TIMEA AND THE CHANGING
WORKPLACE
Peter Ducker wrote, “The greatest danger in
times of turbulence is not the turbulence; it
is to act with yesterday’s logic.”
Whether it’s in an organization, relationship, or
society in general, times of change and unrest
are inevitable. This year in particular, has been
unsetting for many of us. Whether you’ve been
affected by working changes due to covid-19,
increased pressure due taking care of children
while working from home, stress due to the
current state of politics, or some other form of
uncertainty.
WEEK 4
UNDERSTANDING THE NEEDS & WANTS
OF THE BUSINESS
1. Clients and Customers - they are important
that why we have profits.
 We need think about them first.
 Continually bringing new customers
 Needs of the client to find the right
customer
PROS: Targeting the right audience customer
CONS: Hard to trust someone that will work for
you.
2. Employee Retention
 We need steady, consistent employee
to help the organization to operate &
grow successfully.
PROS: Easier retention or easier to manage a
business with no turnover
CONS: Employee will look to another job, skills
don’t used or fit.
 Wants – to increase the average span of
employment and decrease the training
time and cost.
3. Marketing - Marketing is the activity, set of
institutions, and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large. American Marketing
Association (AMA )definition
 They need to know the important of
marketing.
 We need to bought online & offline
presence, traditionally & contemporary
(trending), strategic plan, budget.
 We wants to do it in house
PROS: This efforts can grow your business
CONS: Time consuming for those who don’t
have the right skills.
4. Office Space
 Need space of office to do work.
 Set area away to handle work.
 Away from home and distraction
 Want rented or lease office space,
reachable and accessible.
5. Vacation – good for mental and physical
health.
 Need separation from home,
technology, away from inquiries from the
customer and boundaries set from
customers.
 Wants to get away from their business
from a few days, no stress and worry.
THE ENTREPRENEURSHIP ECOSYSTEM
What is Entrepreneurial Ecosystem?
 According to Mason and Brown (2014),
“The Entrepreneurial Ecosystem is a set
of different individuals who can be
potential or existing Entrepreneurs,
organizations that support
Entrepreneurship that can be business,
venture capitalist, business angels, and
banks, as well as institutions like
universities, public sector agencies, and
the entrepreneurial processes that occur
inside the ecosystem such as the
business birth rate, the number of high
potential growth firms, the serial
entrepreneurs and their Entrepreneurial
ambitions."
Four Defining Characteristics of the
Entrepreneurial Ecosystem:
1. Comprises of six domains
2. Each ecosystem is unique
3. Entrepreneurial Ecosystem’s defining
root causes has restricted practical
value.
4. Entrepreneurial Ecosystem are
comparatively self-sustaining.
Six Key Domains of the Entrepreneurial
Ecosystem
1. Policy Domain
 Across the various areas of the world,
the pillars of government regulations are
diverse and every policy of the
government can perk up or scale down
the capabilities to start and the
expansion of the business. Under this
domain, it has various elements such as
the easy step to commence a business,
incentive on taxes, and laws that could
be friendly with the business.
 As similar to that, this domain also
includes the physical structure, where
there is access to the infrastructure,
transport as well as telecommunication
that also affect the businesses
according to the World Economic
Forum.
2. Finance Domain
 For all types of businesses, it is very
effective and advantageous to have
financial reserves as they can maintain
 growth by obtaining more resources. A
key aspect of any business is the
financial resources as it provides
support to appoint people and to
purchase as well as lease properties as
well as tools and make investments in
marketing and sales, and keep track of
customers.
 The financial alternatives that are
available with the startup of businesses
also began with kin and kith, investors,
venture capital, private equity, and also
debt access. There is a positive
relationship between the flow of finance
and business growth according to the
World Economic Forum.
3. Culture Domain
 It has been argued that staring cultural
support is required for an enterprise to
establish an emerging Entrepreneurial
ecosystem.
 The tolerance of risk and failure within
an enterprise, priority given to self-
employment, innovation celebration,
success stories, research cultures, and
role models are the aspects that are
always of huge importance in cultural
support as explained by the World
Economic Forum. All these create a
cultural domain.
4. Support Domain
 A variety of idiosyncratic, institutions, as
well as organizations, assists the
business to create and expand as well.
Some actors that included are mentors,
consultants, professionals such as
accounting, incubators, accelerators,
human resources, etc
5, Human Capital Domain.
 Quality and the quantity of the workforce
are the human capital domain. Based on
the skills and abilities that people have,
the working environment is created
accordingly. There are some elements
of this domain such as technical and
management talent, the experience of
an entrepreneurial company, immigrant
workforce access, and the availability of
outsourcing.
 A combination of such components
affects the growth of the business.
Within the domain of human capital,
education and training are considered
6. Market Domain
The representation of the consumer’s
willingness to buy products as well as services
of a company is indicated by the market
domain.
FINANCIAL MATTERS
If you are thinking of launching a startup,
my hat goes off to you because it’s far from
easy. Here are eight tips to help you avoid
some of common financial mistakes when
starting a new business.
1. Cash flow management is key.
2. Track and monitor all spending.
3. Limit you fixed expenses in the
beginning.
4. Remain optimistic but prepare for the
worse.
5. Every minute of your time has monetary
value.
6. Focus on customer acquisition.
7. Make sure you pay yourself.
8. Establish financial goals.
The Business Model
A business model describes the
rationale of how an organization creates,
delivers, and captures value, in economic,
social, cultural or other contexts. The process
of business model construction and
modification is also called business model
innovation and forms a part of business
strategy.
Raising Capital
 Cash is the lifeblood of business, if you 2. The growth phase – Increase revenue, new
run out of it and lack access to additional services, and product development, more
resources, the game is over. employees to hire and sales grow each year.
Advantages:
TRANSITIONING FORM SINGLE
PROPRIETORSHIP TO CORPORATION  Combat the hidden cancer of the bad
boss.
There are a lot of small business that
start off as sole proprietorship – it’s one of the  Harness discretionary effort.
simplest and most straightforward business  Improve operation.
structures, after all. 3. Organization Decline Phase - it can be
Eventually however, many sole renewal or debt.
proprietors see an opportunity to transition into Reason for Decline:
a more formal business model. It could be a
 Too much debt
long overdue turning point, a chance to
upgrade a grassroots project into a thriving  Inadequate leadership
business. Perhaps it’s to accommodate a huge  Poor planning
client who requires your business to operate as  Failure to change
a corporation or an LLC. Or maybe it’s the risk  Inexperience management
of losing your personal savings or assets in  Not enough revenue.
case you sole proprietorship incurs any debts 4. Organizational Renewal – you must exert
or liabilities. effort. Decline doesn’t have to continue.
Advantages of Changing to a Corporation 5. Organizational Death
Converting from sole proprietorship to a
corporation protects your personal assets by
setting it apart from your business assets.
Transitioning into a corporation is also
an effective way to save money on taxes,
which can be quite significant especially foe
business raking in large profits.
1. Easier to obtain financing.
2. Seamless continuity.
3. Tax advantages.
4. Establishes more credibility.
5. Transferable shares of ownership.
6. The corporation itself pays its own tax.

WEEK 5
FIVE STAGES OF ORGANIZATION LIFE
CYCLE
1. The start-up phase – think or form of
business, create business plan, financial
resources or capital, it can be creditors. Last,
Declare that we can open the business.

WEEK 6
CONCEPT, PRINCIPLES AND PROCESSES
FOR SIMPLE BUSINESS PLAN
How to develop a marketing strategy?
 The marketing strategy should start with
the customer problem. A successful
product or services solves a problem for
the customer. Perform market research
to find out what your potential customer
want. Use that research determine how
to position the product to meet their
needs. Then, you can create marketing
strategy to attract your audience to this
product. With this strategy, you want to
create brand awareness, generate new
leads and ultimately sell you product
and service.
Marketing Mix
The marketing mix refers to the set of
actions, or tactics, that a company uses to
promote its brand or product in the market.
7Ps of Marketing
Product – A product can be an offshoot of the
following 3 provoking questions: What is the
problem? What is the solution? And the last
would be, how does the business enterprise
make money out of it? The main consideration
associated with the product variable is the
actual commodity or service to be sold in return
of money. The company needs to consider the
quality of the product, its uniqueness in the
marketplace and the branding that will be used.
Price – refers to the value that is put for a
product. It depends on costs of production,
segment targeted, ability of the market to pay,
supply – demand and a host of other direct and
indirect factors. There can be several types of
pricing strategies, each tied in with an overall
business plan. Pricing can be also be used a
demarcation, to differentiate and enhance the
image of a product.
Place – Refers to the point of sales. In every
industry, catching the eye of the consumer and
making it easy for her to buy it is the aim of
good distribution of ‘place’ strategy. Retailers
pay a premium for the right location. In fact, the
mantra of successful retail business is
‘location, location, location.’
Promotion – This refers to all the activities
undertaken to make the product or service
known to the user and trade. This can include
advertising, word of mouth, press reports,
incentives, commissions and awards to the
trade. It can also include consumer schemes,
direct marketing contests and prizes.
People – Considered as the most important
asset of an organization is its people, no
surprise it is also considered as one of the
essential elements of the marketing mix. Not all
of the people get in touch with the customer,
but all these people have their own roles to
play in the production.
Process – refers to the processes involved in
delivering your products and services to the
customer.
Having good process in place ensures that
you:
 Repeatedly deliver the same standards
of service to your customers.
 Save time and money by increasing
efficiency.
Physical Environment – Not to be confused
with place, physical environment refers to the
evidence or the felt environment where the
product is being sold of the service is being
delivered from.
DEVELOP A PRODUCT OR SERVICE
OFFERING (Part 1)
A. Define your ideal customer
 Determining who your ideal customer is
will shape all of your marketing efforts for
your product. In order to get the most out
of your marketing budget, target your
ideal customers.
 You can determine you ideal customer
through the client data you keep on your
product sales. You can also survey your
clients or analyze research generated by
competitors in your industry.
 For example, if you sell outdoor
technology equipment, your ideal
customer might be a male or female
between the ages of 25 and 50 years old,
as these people are both more active than
older people and have more disposable
Income that younger people.
 In addition, you estimate that your ideal
customer lives in an urban community, as
people there spend more time outdoors
than those in other parts of the country,
and has an upper level or high level of
income, as your outdoor equipment is
relatively expensive
CREATING A MARKETING STRATEGY
(PART 2)
Be clear about your ultimate goal in
marketing. Before you start working on your
marketing strategy, consider what you want as
an end result. Once you identify the end result,
you can develop your plan.
 Your firm's goal may be to increase
brand awareness, or simply to increase
product sales. You may also want to
expand into a new market segment. If
you're in the hiking and biking gear
market, for example, you may want to
expand into mountain climbing gear.
 Any goal you set should be compared to
a benchmark for your industry. Assume,
for example, that there is a tremendous
amount of competition in the hiking and
biking gear market. No single firm
controls more than 5% of the sales In
that market. If your goal is to increase
sales, you might set 5% as your end
goal. The goal fits the conditions in your
marketplace.
 You decide that your goal is to increase
brand awareness. When someone
realizes that they need a better cell
phone charger when they go hiking or
biking, you want that prospect to know
about your company.
 Once you decide on a goal, you can
consider which marketing tactics may be
effective. A tactic is a specific task you
perform to market your product. Direct
email, email campaigns and cold calling
are all marketing tactics.
 For example, you might decide that
content marketing is a tactic you will use
to build brand awareness. You can carry
out this tactic by consistently posting
useful blogs and articles to your
website.
 Once people know about your brand,
you want them to ask for more
information about your product. They
may click through on an ad they see, or
visit your website. Those people
become new leads for sales.
  You want to maintain contact with your timeline might state that each newsletter
leads until a portion of them become must be sent by the 5th day of each
customers. They may receive an email month.
or newsletter, from you. Other leads  Assign each marketing task to a
may read blogs and articles about particular person. If the task is assigned,
outdoor sports on your website. When you won't lose track of the progress of
they decide to purchase a phone that task. Each person can update the
charger, they may buy from you. entire group on the status of their
particular tsk. Maybe your in-house
Expand your marketing efforts. To increase
copywriter is responsible for producing
your sales, you may need to add some new
the newsletter.
marketing activities. As you add new ways of
marketing your product, your firm's brand
awareness will increase.
 All companies should have a website,
and many firms write and post blog
content. To expand your presence in the
market, consider hosting a podcast and
speaking at events. If your competitors
don't use these strategies, you'll have a
chance to stand out WEEK 7
 Implement a formal system to ask
Concept, Principles, and processes for
clients for referrals. If a customer does
Simple Business Plan
give you a referral, reward them in some
way. You can offer the referring What Are Financial Statements?
customer a free gift or a purchase
discount. A referral has a high Financial statements are written records
probability of being converted from a that convey the business activities and the
prospect to a client. financial performance of a company. Financial
 To increase your image as an expert, statements are often audited by government
consider providing seminars or webinars agencies, accountants, firms, etc. to ensure
to your market. When people need to accuracy and for tax, financing, or investing
solve a problem, they seek out experts. purposes.

Create a marketing plan and a budget to Using Financial Statement Information

implement your plan. It's critical that you write a
Investors and financial analysts rely on
formal marketing plan. In order to make the
financial data to analyze the performance of a
plan a reality, you need to budget for each of
company and make predictions about its future
your marketing activities.
direction of the company's stock price. One of
 You plan should include the specific the most important resources of reliable and
audience you are targeting. That audited financial data is the annual report,
audience is based on the traits of your which contains the firm's financial statements.
ideal customer. To find out more about
The financial statements are used by
marketing plans, see Create a
investors, market analysts, and creditors to
Marketing Plan.
evaluate a company's financial health and
 Your plan should indicate a timeline for
earnings potential. The three major financial
each task to be completed. If you send a
statement reports are the balance sheet,
monthly e-newsletter, for example, your
income statement, and statement of cash
flows.
Understanding Balance Sheets
The balance sheet provides an overview
of a company's assets, liabilities, and
stockholders' equity as a snapshot in time. The
date at the top of the balance sheet tells you
when the snapshot was taken, which is
generally the end of the fiscal year.
The Balance Sheet Formula
Assets = (Liabilities + Owner's Equity)
The balance sheet totals will be calculated
already, but here's how you identify them.
 Locate total assets on the balance sheet
for the period.
 Total all liabilities, which should be a
separate listing on the balance sheet. It
may not include contingent liabilities.
 Locate total shareholder's equity and
add the number to total liabilities.
 Total assets should equal the total of
liabilities and total equity.
Data from the Balance Sheet
The balance sheet identifies how assets
are funded, either with liabilities, such as debt,
or stockholders' equity, such as retained
earnings and additional paid-in capital. Assets
are listed on the balance sheet in order of
liquidity.
Items Included in the Balance Sheet
Below are examples of items listed on the
balance sheet.
Assets
 Cash and cash equivalents are liquid
assets, which may include Treasury bills
and certificates of deposit.
 Accounts receivables are the amount of
money owed to the company by its
customers for the sale of its product and
service.
 Inventory
Liabilities
 Debt including long-term debt
 Wages payable
 Dividends payable
Shareholders' Equity
 Shareholders' equity is a company's
total assets minus its total liabilities.
Shareholders' equity represents the
amount of money that would be
returned to shareholders if all of the
assets were liquidated and all of the
company's debt was paid off.
 Retained earnings are part of
shareholders' equity and are the
amount of net earnings that were not
paid to shareholders as dividends.
Example of a Balance Sheet
Below is a portion of Smart Co. Balance Sheet
as of September 30, 2018.
 Total assets were P3,546,280
 Total liabilities were P1,577,970
 Total equity was P1,968,310
 Total liabilities and equity were
P3,546,280, which equals the total
assets for the period.
PROFIT AND LOSS STATEMENT
Income Statements
Unlike the balance sheet, the income
statement covers a range of time, which is a
year for annual financial statements and a
quarter for quarterly financial statements. The
income statement provides an overview of
revenues. expenses, net income and earnings
per share. It usually provides two to three
years of data for comparison.
Income Statement Formula and Calculation
Net Income = (Revenue-Expenses)
 Total all revenue or sales for the period.
 Total all expenses and costs of
operating the business.
  Subtract total expenses from revenue to
achieve net income or the profit for the
period.
Data from Income Statements
An income statement is one of the three
important financial statements used for
reporting a company's financial performance
over a specific accounting period. Also known
as the profit and loss statement or the
statement of revenue and expense, the income
statement primarily focuses on a company's
revenues and expenses during a particular
period.
Once expenses are subtracted from
revenues, the statement produces a company's
profit figure called net income.
Types of Revenue
Operating revenue is the revenue earned by
selling a company's products or services. The
operating revenue for an auto manufacturer
would be realized through the production and
sale of autos. Operating revenue is generated
from the core business activities of a company.
Non-operating revenue is the income earned
from noncore business activities. These
revenues fall outside the primary function of
the business. Some non-operating revenue
examples include:
 Interest earned on catch in the bank
 Income from strategic partnerships like
royalty payment receipts
 Income from an advertisement display
located on the company's property
Types of Expenses
Primary expenses are incurred during
the process of earning revenue from the
primary activity of the business. Expenses
include the cost of goods sold (COGS), selling,
general and administrative expenses (SG&A),
depreciation or amortization, and research and
development (R&D). Typical expenses include
employee wages, sales commissions, and
utilities such as electricity and transportation
Expenses that are linked to secondary
activities include interest paid on loans or debt.
Losses from the sale of an asset are also
recorded as expenses.
The main purpose of the income
statement is to convey details of profitability
and the financial results of business activities.
However, it can be very effective in showing
whether sales or revenue is increasing when
compared over multiple periods. Investors can
also see how well a company's management is
controlling expenses to determine whether a
company's efforts in reducing the cost of sales
might boost profits over time,
Example of an Income Statement
Below is a portion of Exxon Mobil Corporation's
(XOM) income statement as of September 30,
2018.
 Total revenues were P76,605 for the
period.
 Total costs were P67,525.
 Net income or profit was P9,000.
The Cash Flow Statement
The cash flow statement (CFS)
measures how well a company generates cash
to pay its debt obligations, fund its operating
expenses, and fund investments. The cash
flow statement complements the balance sheet
and income statement.
Data From the Cash Flow Statement
The CFS allows investors to understand
how a company's operations are running,
where its money is coming from, and how
money is being spent. The CFS also provides
insight as to whether a company is on a solid
financial footing.
Operating Activities (CPS)
  The operating activities on the CFS
include any sources and uses of cash
from running the business and selling its
products or services. Cash from
operations includes any changes made
in cash, accounts receivable,
depreciation, inventory, and accounts
payable. These transactions also
include wages, income tax payments,
interest payments, rent, and cash
receipts from the sale of a product or
service.
Investing Activities (CFS)
 Investing activities include any sources
and uses of cash from a company's
investments into the long-term future of
the company. A purchase or sale of an
asset, loans made to vendors or
received from customers, or any
payments related to a merger or
acquisition is included in this category.
 Also, purchases of fixed assets such as
property, plant, and equipment (PPE)
are included in this section. In short,
changes in equipment, assets, or
investments relate to cash from
investing.
Financing Activitico (CFS)
 Cash from financing activities include
the sources of cash from investors or
banks, as well as the uses of cash paid
to shareholders. Financing activities
include debt issuance, equity issuance,
stock repurchases, loans, dividends
paid, and repayments of debt.
 The cash flow statement reconciles the
income statement with the balance
sheet in three major businessactivities.
Example of a Cash Flow Statement
Below is a portion of Exxon Mobil Corporation's
(XOM) cash flow statement as of September
30, 2018. We can see the three areas of the
cash flow statement and their results.
 Operating activities generated a positive
cash flow of P274,070 for the period.
 Investing activities generated negative
cash flow or cash outflows of P108,620
for the period. Additions to property,
plant, and equipment made up the
majority of cash outflows, which means
the company invested in new fixed
assets.
 Financing activities generated negative
cash flow or cash outflows of -P139, 450
for the period. Reductions in short-term
debt and dividends paid out made up
the majority of the cash outflows.
Financial Statement Limitations
 Although financial statements provide a
wealth of information on a company,
they do have limitations. The statements
are open to interpretation, and as a
result, investors often draw vastly
different conclusions about a company's
financial performance.
For example, some investors might want stock
repurchases while other investors might prefer
to see that money invested in long-term assets.
A company's debt level might be fine for one
investor while another might have concerns
about the level of debt for the company. When
analyzing financial statements, it's important to
compare multiple periods to determine if there
are any trends as well as compare the
company's results its peers in the same
industry.
WEEK 8
4M's of Operation
 Manpower
 Machine
 Material
 Method
MANPOWER
 one of the highest cost of operating a
business but is also the most
instrumental to its success
 have the right people

1. Job Description
General Purpose Job Description
 Job Title
 Job Location
 Job Summary
 Reporting to Job Duties
Specific Purpose Job Description
 Detailed Duties & responsibilities
 Subtasks
 How job is to be performed Essential
 Functions
2. Employee Qualification
1. Educational background
2. Work experience - Potentially
contribute
3. Specific skill or knowledge-specialized
4. Work attitude-relationship skills
3. Selection of Job Applicants
Applicants will be asked relevant
questions in an interview by the entrepreneur
or the HR personnel.
4. Job Offer
Job contract summarizes the terms and
conditions of the candidate's employment with
the business.
5. Employment Development
Training people-employee orientation
MATERIAL
1. Manufacturing own products or offer
services
 Summarize raw materials and how it will
process toproduce product
2. Outsourcing of manufacturing or service
activities to a third party.
3. Purchasing own product or service from
present suppliers.
METHOD
 Methods refers to the system and step
by step process in the business.
 Represents the day-to-day operations of
a business.
 Describes how an entrepreneur will run
the business from all facets of the
business such as the manufacturing of
goods, service delivery process,
distribution of goods and services,
logistics for delivery of goods, and
inventory management
Financial Forecasting
What are Financial Forecasting?
 Financial forecasting is the process of
estimating or predicting how a business
will perform in the future. The most
common type of financial forecast is an
income statement, however, in a
complete financial model, all three
financial statements are forecast.

MACHINE Traits of Successful Entrepreneurs

 Equipment and other facilities Discipline
 Machinery is also important. Without the  When we talk about successful
proper equipment, you will not be able entrepreneurs, they are disciplined
to perform the needed. tasks efficiently. enough to take everyday steps that
You may be able to use the manpower make them come closer to their goals
to do it but it is usually more efficient if and objectives.
machines are able to automate the
work. Confidence
  An entrepreneur has confidence over
his plans, and he does not question his
success or worth. They have complete
confidence in their success and
knowledge. It gets them through
everything that they do. This self-
confidence and freedom from fear of
failure sets them on track and venturing
to take any risks that come their way
Open-mindedness
 Successful entrepreneurs see every
event as an opportunity for the success
of their business. They are constantly
busy with generating new ideas about
efficiency, workflows, skills of the
people, and new potential businesses.
Initiators
Another trait of successful
entrepreneurs is that they don't wait for anyone
to make a start. They take the initiative when
something needs to be done. They set
boundaries and then ensure to make their
projects follow the set path. These people don't
wait for anyone to grant them permission or
approval; they start!
Competitiveness
 The reason for new companies to
develop an entrepreneur is because
they believe in themselves. And also
they can do better than the other
competitors in his field. An entrepreneur
believes himself to do a better job than
the others.
Creativity
 One aspect of being a successful
entrepreneur is that they are creative in
their work. They can form connections
between even the most unrelated
situations or events. The solutions that
such people come up with are
encompassing several other items.
Such creative entrepreneurs make use
of repurposing products and then
marketing them to newer industries
Determination
 You will often find that successful
entrepreneurs have strong
determination for their cause, and their
defeats can't frustrate them, they don't
let their defeats come in the way of their
success rather see them as
opportunities for success.
Communication & Responsiveness
A passionate entrepreneur possesses
strong skills in communication that make it
possible to motivate employees and sail their
products such entrepreneurs know how to
push their employees and motivate them to
ensure the overall success of their business
Strong Work Ethics
Being on time and leaving once
everything is done and set qualifies as one of
the top qualities of a successful entrepreneur.
Such as person with devotion will usually be
the first to come and the last to leace. They will
be ready to spend some extra hours or even
come on their off days to ensure that their set
outcomes are being met.
Passion
 One of the most crucial trait of a
successful entrepreneur is passion,
Passion is a major driving force for a
dedicated businessman because they
genuinely love the work that they do.
The reason why they wouldn't get tired
of their work is that they are passionate
and simply because it is more of a
choice rather than a compulsion