FUNDAMENTALS OF ENTREPRENEURIAL

MANAGEMENT

PREPARED BY: MANUEL M. JAIME JR,

“Fundamentals of Entrepreneurial Management” is an
integrative capstone course in entrepreneurship. It is based on
the insight that in today’s business environment entrepreneurial
management skills are key for general managers and
entrepreneurs alike.
 Describe Your Idea
To initiate or craft an effective value proposition, you first have to consider a few
important aspects with regards to your business idea:
• Who is your target audience?
• How will the benefit from your product?
• What kind of problem are you solving for them?
• How do you plan to help solve said problem?
• Who is your competition?
• How do you plan on getting ahead of them?
• Why is your product better than other products in the market?
What Is Your Value Proposition?
• A product’s value proposition is a statement of the functional, emotional and
self expressive benefits delivered by the brand that provide value to the target
customer.”
The Value Proposition Process: Frameworks and Process
Here’s the step procedure on how you can organize the value proposition and
business model:

• Focus on the value proposition. This step involves analyzing the problems you
may encounter
• Propose a solution to the said problems which you may encounter
Importance of Entrepreneurship Management
• There are three things stated below, that define why entrepreneurship management is
important.
1.Innovation is a process of experimenting, changing, transforming, and revolutionizing
an entrepreneurial activity.
2.New Startups can contribute to reshaping the new firms through performing sufficient
duties with innovative practices that may result in growth as well as the profitability of the
entire firm.
3.Job Creation is another aspect that states the importance of entrepreneurship. New
startups may require new staff, so the outcome will be much more beneficial for
unemployed applicants.
Testing Your Target Customer Assumptions

• When devising a business model, you need to focus on a problem that your
product will be solving with the help of your product. You need to consider
concrete objectives such as cost, profits, and market share. Normally, a failure to
meet these objectives leads to grave consequences and may lead the company to
jeopardy.
Cognitive Dissonance
• When you are unable to reach an objective, the realization of your current
situation is ultimately not what you had desired. This causes cognitive
dissonance. It is a sense of mental conflict that causes anger and irritation when a
situation does not turn out the way you had planned.
In order for your business to become a success, you need to look for latent
problems that your customers might be facing. Here’s how you should work it out:

• Devise a plan on how to collect information from your target audience

• Consider the objectives you are focusing on and find a way to execute them
• Consider how failure to meets these objectives will affect your business
• Calculate the loss in terms of numbers and figures (economic loss)
Conducting Customer Interviews
• Start by interviewing people who are nearest to you
• Don’t simply start talking about sales. Instead, try to connect with the customer
at an emotional level and allow them to express themselves. Only then will you
be able to learn more about their problems.
• Ask open-ended questions that allow the customers to talk about multiple issues.
If there are specific areas you wish to address, note them down and ask those
questions before the time is up.
• Document all the information you have gathered
• Be punctual and respectful to everyone’s time. Display proper meeting etiquette
by switching off your phone and listening attentively to your customer
Evaluate Test Results

At this point, you should be able to conduct interviews and gather important
information.
• How correct were your previous assumptions about the objectives you had laid
out regarding the customer’s problems?
• How do you propose to identify your target audience?
• Will the customer actually pay for the problem to be solved?
Deciding On Your First Customer
After conducting intense research about the market, it is important for you to be
able to identify who your first target audience will be. Your potential customer will
have the following traits:
• They will be aware of the problem
• They will need a solution for the said problem
• They will have the budget to acquire the solution for the problem
Devising the Product Solution
• Your next step should be identifying a solution to the problem. The solution
should not only solve the customer’s problem but should also persuade and
motivate them to buy the product.
Testing the Product Solution
• After devising the product solution, it is important to test the product solution.
The minimum viable product (MVP) will be the initial product that the
customers will be paying for. This product has the fewest features and is used
to generate feedback from the customers.
Evaluation
• After your product solution has been tested, it is important for you to evaluate
the results:
• Has the customers problems been verified?
• How accurate and validated is the product solution?
Creating a Value Proposition Statement
Now that you have completed all the required processes, it is time for you to write
your value proposition statement. This statement basically summarizes the above-
mentioned points. A good value proposition statement focuses on the following:
• The specific target audience (who are they?)
• Their problems/needs
• The solution you have proposed
• How your solution will improve their quality of life
What are the four value of proposition Statement?
• What are the 3 importance entrepreneurship management?