THE

ENTREPRENEUR’S
CHECKLIST
The most practical and realistic business opportunities should fulfill the following
criteria:

1. There must be a market for the product or service , otherwise; you will be producing
something that nobody wants to buy.
2. Accessible location is necessary to reduce operating costs.
Location- vital in maintaining smooth and efficient operations.
3. Minimizing fixed and variable costs is a must.
Fixed costs- are costs that a business incurs which do not change as the business
increases or decreases the number of goods or services it produces.
- include rent and amortizations on machinery and equipment.
 Variable costs- rise and fall proportionally with the number og good and services
produced.
- include costs of labor and raw materials.
Capital-intensive businesses and industries- those which require more fixed,

upfront costs
than variable costs.
- examples include petroleum, automotive, and telecommunications industries.
Labor-intensive businesses and industries- those which require more variable
costs (specifically labor or manpower) than fixed costs.

4. Compliance with legal requirements is a must.

 SWOT ANALYSIS
The SWOT Analysis ( Strengths, Weaknesses, opportunities, and Threats) is used
to analyze an organization or process to evaluate the internal (strengths and
weaknesses) and external (opportunities and threats) factors which which may prove
favorable or unfavorable in achieving its objectives.
Strengths- positive characteristics that give an organization or business an
advantages over other businesses.
Weaknesses- negative attributes of a business.
Opportunities- external possibilities that the business can venture into or take
advantage of
Threats- negative external factors.
CASE 1. CATHY’S CANTEEN
Cathy’s canteen is located in a well-known university in Metro Manila. She started
selling packed lunches to her co-employees in the 70s for additional income. At around
1978 to 1979, Cathy decided to resign and make the business her full-time job. She
continued selling the same packed lunches and snacks to faculty members and
employees of the school. She also ventured into a small catering service within the
vicinity.
She decided to expand. She began by opening a canteen in a high school building,
then later added another canteen inside the science building. She enjoyed the monopoly
of owning the only food service in both buildings.
Business was doing well until a new administration cancelled her contract in the
Science building, and instead gave her a contract in the Medicine building. She retained
her contract in the high school building, as well.
 The new administrators opened a commercial complex inside the school with
commercial slots open for lease. The rent is quite expensive and 10-month rent has to
be paid in advance to get a slot. There are currently 2 floors with available slots. Cathy
opened a slot on the first floor, and business has been good so far.
Cathy is now thinking of getting another slot beside her existing one in the
commercial complex, but she is hesitating because of two reasons; (1) the new K to 12
Curriculum initially decrease her potential customers by 50% and (2) university rules
state that concessionaires must halt operations when school is break but must continue
paying rent during those months.
CATHY’S CANTEEN
Point of View: Owner Cathy (decision-maker)
Time context: 2015 (when the case happened)
I. Statement of the Problem: How do you maintain the number of clients from 2016-
2018? (Present setback of the firm)
II. Statement of Objective: Maintain the number of clients by having leverage and
competitive advantage ( A statement that answers the problem)
III. Areas of consideration
A. The Internal Environment is a description of what is happening in the
business.
Inside the University, the population of students will decrease by 25% in AY
2016-2017. After a year, it will experience an additional 25% decline. Hopefully this will
change in 2020-2021.
 Aside from a dcline in potential buyers, a lot of food chains are applying to get
a slot inside the school because of the number of students patronizing different brands.
This will further saturate the supply of food.
B. The External Environment is a description of what is happening outside the
business.
Outside the school are different strategic locations where one can set up shop-
specifically along the school’s perimeter. Convenience stores, food chains, and coffee
shops are most common.
C. The Task Environment is the detailed discussion of the business’s strengths,
weaknesses, opportunities, and threats.
Strengths:
Cathy’s Canteen is a home-cooked style restaurant with affordable prices.
It caters to the small and medium catering needs of different colleges.
Cathy has already established goodwill with different customers inside and
outside the university.
 Cathy bought a place outside the school and turned it into an events venue that
serves as an extension of the canteen for private gatherings like birthdays and other
events.
Weaknesses:
The number of potential customers will decrease in a few years with the onset
of the K-12 Curriculum.
Expensive fixed cost.
Opportunities:
Develop marketing strategies to maintain customers
Open complementary businesses that will have synergy
Threats:
School regulations on rent deposit, end of contract, and bidding
 IV. Assumptions
The financial strength of the business is good because most of the transaction
are paid within 30 days. Cathy’s Canteen has a loyal customers despite the increase in
the number of competitors.
The number of potential buyers will decline over the next 4 years, and its
environment remains uncertain.
V. Areas of consideration
Course of Action 1- Expand the business inside the university.
Course of Action 2- Diversify products offered.
Course of Action 3- Expand the business outside the university.
VI. Analysis (Explaining and identifying the advantages and disadvantages of the
different Courses of Action)
Course of Action 1- Expand the business inside the university.
Advantage:
It will increase revenue in the short run.
 Disadvantages:
The school’s regulations may not benefit stall owners over the next few years.
Expansion is costly.
Course of Action 2- Diversify products offered.
Advantages:
Offering diversified products means catering to specific tastes and preferences
of customers.
This will give existing customers new options, and may attract new potential
customers.
Diversification will create “Loyal Customers”, thus having leverage over the
competitors.
The venture is affordable.
Disadvantage:
There will be a decline in the number of potential customers.
 Course of Action 3- Expand the business outside the university.
Advantages:
K-12 problems have no effect outside the school.
You may even experience an increase in number of customers.
Disadvantages:
It is very costly.
Proximity from school is a problem; students may not bother to visit the place.

VII. Conclusion
A decision matrix is a table to evaluate various options according to certain
criteria in order to make the best possible choice.
 Criteria CA1 CA2 CA3
Profitability 2 1 3
Regulations/Restrictions 1 2 3
Competitive Advantage 2 3 1
Cost Efficiency 2 3 1
Total 7 9 8

Course of action no.2 (diversification of products) seems to be the most economical

and logical choice in this situation, where future unforeseen problems outweigh
present results. Based on this decision matrix of profitability, competitive advantage,
and cost efficiency, competitive advantage and cost efficiency post best for course of
action no. 2.