ENTREP Chapters 1 10

WELCOME TO
NEW ENTERPRISE PLANNING BY: DANNY TENERIFE, CPA

Lecturer
Entrepreneur
CHAPTER 1
PLANNING THE ENTERPRISE
WHAT IS BUSINESS PLAN FOR?
Entrepreneurs – Who plan to enter any business endeavor must have a

business plan on hand to guide them throughout the process. Different
business plans are prepared for different purposes.
There are business plans written prior to setting up an enterprise, which are
similar to a prefeasibility study and a feasibility study.
Many new enterprises need to convince prospective business investors about
the soundness and potential of their business.
A business plan serves many masters
Entrepreneur who must set a navigational course.

Investors and cautious financiers.
Managers and staff of the organization so that they will know
the strategies and programs of the enterprise.
The Business Concept and the Business Model
A Business Concept contains the essence of the enterprise in a concise

but powerful manner. It stresses the value of the product offering to the
target customers who would most likely to buy it.
A Business Model is a formula on how the enterprise exactly plans to

make money out of the business.
Areas of moneymaking which the business model must address:
How will the business raise revenues?

What will be the cost of the enterprise products and other cost of doing business?
What will be the major investments of the enterprise?
How will the enterprise finance the investments?
The Business Goals:
Vision, Mission, Objectives, and Performance Targets
Business goals show the future and long-term prospects of the enterprise.
It is compose of the vision, mission, objectives, key result areas,
and performance indicators of the enterprise.
Objectives must be more specific than the vision and mission statements.
They should be measurable, achievable, and time-bound.
The Executive Summary
The Executive Summary contains everything that is relevant and importance to the
business audience. It is a synthesis of the entire plan.
The executive summary should then introduce and highlight the good qualities of:
The business proponents and their partners
The enterprise organization and its capabilities
The technology providers and their expertise and experience
The suppliers and all the major service providers
The Business Proponents
Information about the business proponents or stakeholders.
There are four types of stakeholders:

Resource mobilizers and financial backers
Technology providers and applicators
Governance and top management
Operating and support team
If the business plan readers are:
Resource providers, then they will want to know who else are on board to share the
burden of raising money to see the whole thing through.
Technology providers, they will want to know if there will be sufficient funds to pay
for the technology.
Governance and top management team, then they will want to know what strategies
and performance indicators are being proposed.
Implementing operating and support teams, they will want to know what programs,
activities, tasks, and resources would be in place.
The Target Customers and the Main Value Proposition
The business proponent must be very precise about the target audience or
target customers.
Target Customers must be of sufficient size, sufficient paying capacity, and
have sufficient interest to purchase the products being offered by the
enterprise
The business plan should discuss the relevant industry dynamics:
Who are the competing enterprise in the industry and what are their
comparative advantages and disadvantages? What business models
and strategies are they employing?
Who are they suppliers in the industry and what are their capabilities
an bargaining power?
What are the channels of distribution being use by the industry? How
effective are these channels?
Product/Service Offering:
Description, Evolution, and Justification
The Products/Service must be described by highlighting the

features and attributes that would most appeal to the target
customers.
Financial Forecasts:
Expected Returns, Risks, and Contingencies
From the financial forecast, the business plan should then calculate the
expected returns from the business.
Expected return on sales

Expected return on assets or investments
Expected return on stockholders’ equity
Environmental and Regulatory Compliance
The business plan must articulate the laws, rules, and regulations
governing the business, and the industry that the enterprise is in.
The business plan should also assure the reader that all the necessary
local government ordinances and barangay ethics would be followed
by the enterprise.
CHAPTER 2
OPPORTUNITY SEEKING, SCREENING, SEIZING
OPPORTUNITY
An Entrepreneur’s BUSINESS IDEA
That can potentially become a
Commercial PRODUCT or SERVICE
In the future.
THE ENTREPRENEURIAL PROCESS
1. Opportunity Spotting and Assessment

2. Developing a Business Plan
3. Determining the Capital needed
4. Running the Business
3S
Opportunity Spotting and Assessment
The framework that most of the promising Entrepreneurs

use to finally come up with ultimate PRODUCT or SERVICE
suited for specific OPPORTUNITY.
1.SEEKING
2.SCREENING
3.SEIZING
OPPORTUNITY SEEKING
Entrepreneurs are innovative opportunity seekers.
-An endless curiosity to discover new or different ideas and see

whether these ideas will work in the marketplace.
- The First Step and the most difficult process of all due to the
number of options that the Entrepreneur will have to choose from.
OPPORTUNITY SEEKING
Ordinary Businessman
-The main objective is simply to EARN PROFIT from producing,
buying and selling goods.
Entrepreneur
-Create value by introducing NEW product or services,
or finding better ways of making them.
OPPORTUNITY SEEKING
Essentials to an Entrepreneur’s Opportunity Seeking
Entrepreneurial Mind Frame

Entrepreneurial Heart Flame
Entrepreneurial Gut Game
OPPORTUNITY SEEKING
ENTREPRENEURIAL MIND FRAME
- Allows the Entrepreneur to see things in a very

POSITIVE and OPTIMISTIC light
in the midst of crisis or difficult situations.
OPPORTUNITY SEEKING
ENTREPRENEURIAL HEART FLAME
The surging PASSION to find fulfillment in the act

and process of discovery.
Is about emotional intelligence which is often manifested in the

entrepreneur’s efforts to nurture relationships with
customers, employees, an suppliers.
OPPORTUNITY SEEKING
ENTREPRENEURIAL GUT GAME
Refers to the ability of the Entrepreneur

to SENSE without using the five senses (or Intuition and Courage).
Total involvement of the Entrepreneur in the exciting game of business,

demanding the keenest of INTUITIVE ABILITIES
and the strongest intestinal fortitude.
OPPORTUNITY SEEKING
SOURCES OF OPPORTUNITIES
1. Macro Environmental Sources of Opportunities

2. Industrial Sources of Opportunities
3. Market Sources of Opportunities
4. Other Sources of Opportunities
OPPORTUNITY SEEKING
Macro-Environmental Sources of Opportunities
refers to the “Big or Macro forces” that affect the area, the industry
and the market, which the enterprise belongs to.
Macro Environmental Sources of Opportunities (SPEET):

1. Socio-Cultural
2. Political
3. Economic
4. Ecological
5. Technological
MACRO-ENVIRONMENTAL SOURCES OF OPPORTUNITIES
Socio-Cultural Factors
Represents a general view of a locality’s

Traditions,
Customs,
Beliefs,
Norms,
and Perceptions.
Political Factors
Mostly induced by government Policies and Administrations,

which can have a strong effect in the Entrepreneur’s business.
It includes all the laws, rules, and regulations that govern

business practice as well as the permits, approvals, an licenses
necessary to operate the business.
Economic Factors
Factors which are primarily caused by changes or movements in the

Economy that have DIRECT or INDIRECT effects on the Entrepreneurial
venture.
- Supply and Demand

- Import and Export
- Foreign Exchange Rate
- Purchasing Power
Ecological Environment
The growing awareness in the world today makes this factor more and
more important for countries and industries.
The threats of ecological degradation have generated countless

opportunities such as smoke and spill detectors, filters, and screens,
pollution counters and energy saving devices.
Includes all natural resources and the ecosystem, habitat of men, animals,
plants, and minerals.
Technological Environment
Technology leads to the commercialization of new products.

The nature of Technology used for the production of goods and
services is an important factor responsible for the success of a
business firm.
Basically, refer to the trends and developments in computer and

information technology that have impact on business.
INDUSTRIAL SOURCES OF OPPORTUNITES
1. Government
2. Suppliers
3. Customers
4. Competitors
5. Employees
6. Creditors
INDUSTRY ENVIRONMENT
GOVERNMENT
-Refers to the system or institution that handles the affairs
of a particular country.
Five (5) Types / Classifications of Government:

1. Democracy
2. Autocracy
3. Republic
4. Monarchy
5. Dictatorship
DEMOCRACY
-Government by the people
-Rule of the majority
-Supreme power is vested in the people
AUTOCRACY
-One ruler has absolute control and decision-making power
REPUBLIC
-A state is ruled by representatives of the citizen body
MONARCHY
-Political system based upon the undivided sovereignity or rule of
a single person.
-Authority is vested in the monarch, who functions as head of the
state and who achieves his or her position through heredity.
DICTATORSHIP
-One person or a small group possesses absolute power without
effective constitutional limitations.
SUPPLIERS
-Refer to individual persons or companies that provide the
required materials, parts or services to the business.
Criteria of Selecting the Suppliers:

1. Quality of the goods or services
2. Ability to respond to urgent needs
3. Proximity of the location
4. Terms of Payment
5. Stability
CUSTOMERS
-are the buyers of goods or services produced or rendered by

the business.
-It must constantly evaluate and study the behavior, tastes,

preferences, inclinations, and even future activities of the
customers.
COMPETITORS
-are the forces existing in the industry environment that
produce, sell, or render products or services which are similar
to those on the business.
•Direct Competitors
- produce and sell SIMILAR products or services.
•Indirect Competitors
- produce and sell SUBSTITUTE products.
EMPLOYEES
-are the workers of the business who are highly responsible for the
production of goods or delivery of services to the customers.
-They help ensure the quality and quantity of products or services

provided to the customers.
-They are the backbone of the business.

SOURCES OF OPPORTUNITES
MARKET SOURCES OF OPPORTUNITES
The entrepreneur must also be able to measure

the actual demand and supply,
as well as the potential demand and supply
of the industry that the enterprise belongs to.
Micromarket
refers to the specific target market segment of a
particular enterprise.
These are the target customers or specific customer group

that an enterprise wishes to serve.
Analysis Types to identify Market Opportunities
1. Consumer Segmentation
2. Purchase Situation Analysis
3. Direct Competition Analysis
4. Analysis of Complementary Products and Services
5. Analysis of Other Industries
6. Foreign Market Analysis
7. Environment Analysis
1. Consumer Segmentation
To understand your demand, you must identify consumer segments
that share common characteristics.
- Age - Lifestyle
- Gender - Attitude
- Place of residence - Values
- Educational level - Purchasing motivations
- Occupation and level of income
2. Purchasing Situation Analysis

When do people buy your product or services?
Is it when they need it?
Where do people make the purchase?
How do they pay?
3. Direct Competition Analysis

What are the products and brands of our industry
that are growing more significantly and why?
What is their value proposition?

- an innovation, service, or feature intended to make a company or product
attractive to customers.
What competitive advantage do we have over them?

4. Analysis of Complementary Products and Services

Companies should monitor the performance of other companies’ products,
which are complementary to their own.
* Two goods that the consumer uses together.

Ex.
Petrol & Car
Cereal & Milk
Toothbrush & toothpaste
5. Analysis of other Industries

In some cases, the objective of companies I
s not to continue operating
within an industrial sector but to expand
a certain business model or philosophy.
6. Foreign Markets Analysis

What is the percentage of people who use the smartphone
to pay for their purchase?
What is the market share of private labels in a certain industry?

7. Environment Analysis
Market opportunities can also be identified by analyzing
changes in the environment with technological and scientific
developments generating new business opportunities.
OTHER SOURCES OF OPPORTUNITES
• The entrepreneur’s own of skills or expertise, or hobby.
New knowledge as well as new technology can be the source
of innovative opportunities.
1. Customer preferences change over time.
2. People’s tastes in clothes, music, shoes, entertainment, dance,

sports, hobbies, and even careers have evolved over the years.
3. What piques customers (interest) is a great source of opportunities?
4. Before the customer is won over,

First, there is a battle for mind.
Next, there is a battle for the heart.
Finally, there is a battle for the wallet.
OTHER SOURCES OF OPPORTUNITES
5. The longer the customer wants to use the product,
the greater the chances of creating lasting loyalty.
6. Opportunities abound in shaping customer perceptions or occupying spaces in their minds

or places in their hearts that have not yet been filled.
7. New Inventions, new system and work processes, and about the human psyche,
new application for old knowledge.
8. Determining personal preferences and competencies lay the foundation

for a new business venture.
9. Unexpected occurrences in both the external and internal environment of the enterprise
indicate that significant changes are happening and opportunities are spouting.
CREDITORS
-Refer to the Banks, Financial Institutions, and Financial Intermediaries

engaged in the lending of money to the barrower usually for a fee or
charge in the form of interest.
OPPORTUNITY SEEKING
1. Macro Environmental Sources of Opportunities

2. Industrial Sources of Opportunities
3. Market Sources of Opportunities
4. Other Sources of Opportunities
OPPORTUNITY SCREENING
OPPORTUNITY SEEKING, SCREENING, & SEIZING
OPPORTUNITY SCREENING
to come up with a short list of a few very promising
opportunities, which could be scrutinized in detail.
THE 12 R’s OF OPPORTUNITY SCREENING
Relevance to vision, mission and objectives of the entrepreneur.

Resonance to values. Other than vision, mission an objectives, the opportunity must
match the values and desired virtues that you have or wish to impart.
Reinforcement of Entrepreneurial Interests. How does the opportunity resonate
with the entrepreneur’s personal interests, talents, and skills?
Revenues. It is important to determine the sales potential of the products or services
you want to offer.
Responsiveness to consumer needs and wants.
Reach. Opportunities that have chances of expanding through branches, distributors,
dealerships, or franchise outlets in order to attain rapid growth.
Range. The opportunity can potentially lead to a wide range of possible product or
service offerings, thus, tapping many market segments of the industry.
Revolutionary Impact. If you think that the opportunity will most likely be the “next
big thing” or even a game-changer that will revolutionize the industry.
Returns. It is a fact that products with low costs of production and operations but are
sold at higher prices will definitely yield the highest returns on investments.
Relative Ease of Implementation. Will the opportunity be relatively ease to
implement for the entrepreneur or will there be a lot of obstacles and competency
gaps overcome?
Resources Required. Opportunities requiring fewer resources from the entrepreneur
may be more favored than those requiring more resources.
Risks. In an entrepreneurial endeavor, there will always be risks. However, some
opportunities carry more risks than others, such as those with high technological,
market, financial, and people risks.
Investment Requirements and Production/Servicing Costs
Pre-Operating Costs.
These are the cost related to the preparation for the launch of the business.
Production/Service Facilities Investment.

These refers to the long-term investment for the actual business establishment.
Working Capital Investment.

This includes the investment needed to operationalize the business
INVESTMENT
REQUIREMENTS
Financial Forecasts and Determination of Financial Feasibility
Financial forecasting calls for the creation of the four critical financial statements:
1. Income statement
2. Balance sheet
3. Cash flow statement
4. Change in Equity statement
INCOME STATEMENT
The financial statement that measures an enterprise’s performance in
terms of revenue and expenses over a certain period.
REVENUES – EXPENSES = INCOME OR PROFIT (LOSS)

BALANCE SHEET
Equation: ASSETS = LIABILITIES + EQUITY
Assets represent all the investments in the enterprise: cash, accounts receivable,
inventory of goods, equipment and machinery, facilities, vehicles.
Financing the assets or investments are the liabilities and equity.
Liabilities represent the enterprise’s debts to supplies, to banks, to government, to
employees, and other financiers.
Equity represents the investors investment in the stock of the business.
Financial Ratios and Measurements
In any business endeavor, the investor or the entrepreneur himself or
herself will always be interested in knowing the payback period or how
long will it take for him or her to get back what he or she has invested
in the enterprise.
𝑻𝑶𝑻𝑨𝑳 𝑰𝑵𝑽𝑬𝑺𝑻𝑴𝑬𝑵𝑻
PAYBACK PERIOD = 𝑨𝑵𝑵𝑼𝑨𝑳 𝑵𝑬𝑻 𝑰𝑵𝑪𝑶𝑴𝑬 𝑨𝑭𝑻𝑬𝑹 𝑻𝑨𝑿𝑬𝑺
Return On Sales (ROS) ratio where the entrepreneur calculates how
much profit the enterprise is earning for each peso sold.
𝑵𝑬𝑻 𝑷𝑹𝑶𝑭𝑰𝑻 𝑨𝑭𝑻𝑬𝑹 𝑻𝑨𝑿𝑬𝑺
RETURN ON SALES = 𝑺𝑨𝑳𝑬𝑺
Return On Assets (ROA) or Return On Investments (ROI) If the

entrepreneur is interested to know the return on the investments made.
234 567894 :8436 4:;3<
RETURN ON ASSETS OR RETURN ON INVESTMENTS = 474:= :<<34</92?3<4@324<
OPPORTUNITY SEIZING
The entrepreneur has an idea of the his business,
and as to where he or she will locate the business
and how he or she will market the product or service.
CHAPTER 3
GETTING TO KNOW THE MARKET
MARKET RESEARCH
Entrepreneur, know thy market well!
The more you know about your market, the better you will be
able to determine customer needs and wants.
You will be able to reach them wherever they are.
Basic Questions in Market Research
WHY – Purpose and objective for conducting the market research.
WHAT – Determine the scope and the limitations of the market research.
WHICH – Determines which segment of the market must be studied.
WHO – Identifies who among the members of the selected market segment.
WHEN – Determines the time and timing of the research.
WHERE – Pinpoints the relevant location of the market research.
HOW – Determines the methodology to be used for the market research.
CUSTOMER PROFILING
In effect, when the entrepreneur starts doing the market research,
he or she is also beginning to understand hos or her customers,
therefore, profiling them.
METHODS OF CUSTOMER PROFILING
Demographics
Psychographics
Technographics
DEMOGRAPHICS
We categorize customers into:
AGE
INCOME CLASSES
SOCIAL CLASSES / REFERENCE GROUPS
ETHNIC BACKGROUNDS
RELIGIOUS BELIEFS
OCCUPATIONS
DOMICILES
Ethic backgrounds and religious beliefs affect the cultural beliefs of people such as
the food they eat, how they save and how they spend, and their levels of
conservatism or progressiveness.
Social classes and reference groups often dictate what is acceptable or
unacceptable behavior. These classes or groups often include family, friends,
neighbors, fellow workers, and social affiliations
Occupations such as those of factory foremen, doctors, taxi drivers, nurses and
teachers also determine what kind of goods and services these people would buy.
Domiciles or habitats, or areas of residence and environmental surroundings,
oftentimes, define and limit the choices available to customers.
PSYCHOGRAPHICS
Psychographics defines the customer’s motivations, perceptions,
preferences, and lifestyle.
Motivation goes to the roots of customer’s needs and wants.
Perception is the way a person chooses to receive or interpret
information from the external world.
TECHNOGRAPHICS
Technographics classifies people according to their level of expertise in using a
product or a service.
For example:
Sports beginners might just want basic equipment.
Sports regularly may be looking for more sophisticated equipment.
Finally, sports professionals would want the best of the best for the competitive
purposes.
CHAPTER 4
LET THE MARKET KNOW YOU BETTER
Marketing is about creating and accumulating customers.
Marketing plans are designed to capture market share and
defeat competitors.
The marketing function and the marketing mix serve the
overall business strategy.
Seven Ps Marketing Mix:
Positioning
Product
Packaging
Place
People
Promotion
Price.
POSITIONING
Three overlapping objectives:
Enterprise perspective.
- address the needs of a chosen target market.
Competitive perspective.
- differentiate and distinguish itself from its competitors.
Customer’s perspective.
– the way the customer’s perceive the enterprise and the products or services to
their minds.
PRODUCT
A Product is the tangible goods or intangible service that the enterprise offers.
There are 4 general types of products that are marketed:

Breakthrough products
Differentiated products
Copycat products
Niche products
Breakthrough products offer completely new performance benefits. They may double the
performance at half the cost.
Differentiated products try to claim a new space in the mind of the customer different from
the spaces occupied by existing products. The performance benefits may be close to existing
products but there would be additional benefits on special aspects of the product.
Copycat products will not make much impression on the consumer’s mind. The marketer should
make up for this lack of mental space by offering more physical space in the shelves, lower
prices, easier access, promotional freebies, and the like.
Niche products do not intend to compete with the giants. They are products with lower reach,
lower visibility, lower prices, and lower top of mind.
PACKAGING
Identifies the product, describe its features and benefits
Differentiates the product from its competitors and even from other brand offerings.
Lengthens the lifespan, physically protects, and extends the usefulness of the
product.
Environmental issue by itself
Packaging have increased the cost of packaging and, therefore, the price of the
product.
PLACE
The number of customers residing or working in the area, the number of customers
who frequently pass through the area.
The density or number of customer per unit area.
The access routes to alternative locations and their traffic count in those routes.
The buying habits of customers, or where they buy, at what time, and how
frequent.
Location features such as parking spaces, foot access, creature comforts and the
like.
People
People are the ultimate market strategy.
The marketing efforts of people are organized at four levels
(1) to create customer awareness.
(2) to arouse customer interest.
(3) to educate customers as they evaluate their buying choice.
(4) to close the sale and deliver the products.
Availability means that the enterprise has the goods or services on hand.
Accessible means that the customers can easily get the product from their usual
buying places or the products can be conveniently delivered to them.
Adequate means the product meets the quality and delivery specifications of the
customer.
Acceptable means that the customer is convinced by the selling points of the product,
finds very little or no objectionable features in the product, and accepts the
conditionality, warranties, and amenities given by the seller.
Affordable means the price and payment terms are right.
PROMOTION
Promotion is the explicit communication strategy adopted by an enterprise.
Like, advertising, public relation campaigns, promotional tours, product offerings,
point of sale displays, websites, flyers, emails, letters, telemarketing, and others.
Effective promotion depends on three critical factors:

The credibility of the communicator.
The message and the medium of the message.
And the receptiveness of the audience to all that is being communicated.
PRICE
The enterprise should set the prices of its product or services based on its business
objectiveness such as the ff:
Profit maximization
Revenue maximization
Market share maximization
Attainment of the desired prestige or quality leadership
Penetration, survival, or liquidation
Scarcity pricing or market skimming
CHAPTER 5
THE RIGHT PRODUCT FOR THE RIGHT MARKET
NEW PRODUCT DEVELOPMENT

Entrepreneurial minds:
(1) the creative mind
(2) the technical mind
(3) the business mind
THE ENTREPRENEURIAL MIND

Creative mind conceptualizes and designs a product that consumers find some use for.
It likewise produces a product that is pleasing to see, touch, smell, hear and taste it also
produces a product that creates emotional attachment.
Technical mind is the technology originator. The entrepreneur may not necessarily possess
the technical mind but this is what drives him/her to convert new knowledge into something
highly functionality and operational.
Business mind harnesses the potentials of new products by creating the market
space for them.
BUSINESS
IMPLEMENTATION PART 2
CHAPTER 6
THE INTRODUCTION TO BUSINESS IMPLEMENTATION
BUSINESS IMPLEMENTATION
A VERY CLEAR PURPOSE
A VERY COMPELLING VISION
NAME OF ENTERPRISE
- very fitting name for the enterprise
- identifies the company very well
- communicates what the company is all about
- what its product are all about
A COMPANY OF ANGELS
- business partners
- industrial partners who can contribute expertise in
experience
A VERY GOOD BUSINESS PLAN
The purposes of a business plan

1. Entice partners, investors, and bankers to fund a business venture
2. Communicate what the enterprise is all about, what market it
wants to serve.
3. Show what financial returns it could muster.
The business plan
1. The business it self
2. The organizers
3. The management and technical people
4. The financial structure
5. Its market potential
6. Its target market
7. Its projected sales, expenses, and profits
8. Its probable risks
CHAPTER 7
PREPARING, ANALYZING, & FORECASTING
FINANCIAL STATEMENTS
PREPARING, ANALYZING, AND FORECASTING
FINANCIAL STATEMENT
Investment
FINANCIAL STATEMENT
Income Statement
FINANCIAL STATEMENT
Income Statement
FINANCIAL STATEMENT
Balance Sheet
FINANCIAL STATEMENT
Funds Flow
FINANCIAL STATEMENT
Projected Income Statements
Cash Budget
FINANCIAL STATEMENT
Liquidity Ratios
ABCCDEF :GGDFG
Current Ratio =ABCCDEF =HIJHKHFHDG
AIGL,@ICNDFIJKD <DOBCHFHDG,IEP :OQQBEFG 6DODHRIJKDG

Quick Ratio = ABCCDEF =HIJHKHFHDG
FINANCIAL STATEMENT
Profitability Ratios
2DF 5CQSHF ISFDC 4ITDG

Return on Sales = <IKDG

Return on Assets = :GGDFG

Return on Equity = 7UEDCG 3VBHFW
CHAPTER 8
MANAGING THE OPERATIONS FUNCTION
MANAGING THE OPERATION FUNCTION
THE SIX Ms OF OPERATIONS
MANAGING THE OPERATION FUNCTION
THE NINE CRITICAL SUB-PROCESSES IN THE TRANSFORMATION PROCESS
1. Technology Application and Utilization
2. Operating Work Flow
3. Lay-outing
4. Production Programming and Scheduling
5. Quality Control
6. Operating System and Procedures
7. Operating Management, Supervision, and Control
8. Work Motivation, Skilling, Deployment, Compensation, and Control
9. Support Services
CHAPTER 9
MANAGING THE HUMAN RESOURCES FUNCTION
THE EIGHT Rs
OF HUMAN RESOURCES
THE EIGHT Rs OF HUMAN RESOURCES
1. Recruitment
2. Routing
3. Retaining
4. Resonating
5. Reviewing
6. Rewarding
7. Retooling
8. Recycling
CHAPTER 10
MANAGING THE FINANCE FUNCTION
MANAGING THE FINANCE FUNCTION
7 Important processes In Managing the Finance Function
FINANCE
Financing
Investing
Negotiating and Deal Making
Administering
Numbers Generation, Analysis and Reporting
Cash and Treasury Management
Evaluating and Planning
ENTREPRENEURSHIP
ENTREPRENEURSHIP
ENTREPRENEURSHIP
ENTREPRENEURSHIP
ENTREPRENEURSHIP
BE AN ENTREPRENEUR…
NOW!

ENTREP Chapters 1 10

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ENTREP Chapters 1 10

Uploaded by

Copyright:

Available Formats

WELCOME TO

NEW ENTERPRISE PLANNING BY: DANNY TENERIFE, CPA

­ Entrepreneurs – Who plan to enter any business endeavor must have a

A business plan serves many masters

­Entrepreneur who must set a navigational course.

­ A Business Concept contains the essence of the enterprise in a concise

­ A Business Model is a formula on how the enterprise exactly plans to

­ How will the business raise revenues?

There are four types of stakeholders:

­ The Products/Service must be described by highlighting the

­ Expected return on sales

1. Opportunity Spotting and Assessment

The framework that most of the promising Entrepreneurs

-An endless curiosity to discover new or different ideas and see

Essentials to an Entrepreneur’s Opportunity Seeking

­Entrepreneurial Mind Frame

ENTREPRENEURIAL MIND FRAME

- Allows the Entrepreneur to see things in a very

The surging PASSION to find fulfillment in the act

Is about emotional intelligence which is often manifested in the

Refers to the ability of the Entrepreneur

Total involvement of the Entrepreneur in the exciting game of business,

1. Macro Environmental Sources of Opportunities

Macro Environmental Sources of Opportunities (SPEET):

­Represents a general view of a locality’s

­Mostly induced by government Policies and Administrations,

It includes all the laws, rules, and regulations that govern

­ Factors which are primarily caused by changes or movements in the

- Supply and Demand

The threats of ecological degradation have generated countless

­ Technology leads to the commercialization of new products.

Basically, refer to the trends and developments in computer and

INDUSTRIAL SOURCES OF OPPORTUNITES

Five (5) Types / Classifications of Government:

Criteria of Selecting the Suppliers:

-are the buyers of goods or services produced or rendered by

-It must constantly evaluate and study the behavior, tastes,

-They help ensure the quality and quantity of products or services

-They are the backbone of the business.

MARKET SOURCES OF OPPORTUNITES

The entrepreneur must also be able to measure

­These are the target customers or specific customer group

Analysis Types to identify Market Opportunities

Analysis Types to identify Market Opportunities

Analysis Types to identify Market Opportunities

2. Purchasing Situation Analysis

Analysis Types to identify Market Opportunities

3. Direct Competition Analysis

What is their value proposition?

What competitive advantage do we have over them?

Analysis Types to identify Market Opportunities

4. Analysis of Complementary Products and Services

* Two goods that the consumer uses together.

Analysis Types to identify Market Opportunities

5. Analysis of other Industries

Analysis Types to identify Market Opportunities

6. Foreign Markets Analysis

What is the market share of private labels in a certain industry?

Analysis Types to identify Market Opportunities

1. Customer preferences change over time.

2. People’s tastes in clothes, music, shoes, entertainment, dance,

3. What piques customers (interest) is a great source of opportunities?

4. Before the customer is won over,

Entrepreneurs – Who plan to enter any business endeavor must have a

Entrepreneur who must set a navigational course.

A Business Concept contains the essence of the enterprise in a concise

A Business Model is a formula on how the enterprise exactly plans to

How will the business raise revenues?

The Products/Service must be described by highlighting the

Expected return on sales

Entrepreneurial Mind Frame

Represents a general view of a locality’s

Mostly induced by government Policies and Administrations,

Factors which are primarily caused by changes or movements in the

Technology leads to the commercialization of new products.

These are the target customers or specific customer group

Relevance to vision, mission and objectives of the entrepreneur.

Production/Service Facilities Investment.

Working Capital Investment.

Effective promotion depends on three critical factors: