Generate Your Business

(GYB)
ENTREP
APTITUDE
TEST
 CHARACTERISTICS OF AN ENTREPRENEUR
1. Motivation for starting a business
2. Risk-taking abilities
3. Perseverance and ability to deal with crisis
4. Family support
5. Initiative
6. Ability to reconcile family, culture and business
7. Decision-making abilities
8. Ability to adapt to business needs
9. Commitment to business activities
10. Negotiation skills
MAPPING

EXERCISE…
 Visit the Local Business Area (Outdoor)
 Visit your local business area and make a list of business you see
 Count them and classify them into the different types of business

Retailers Wholesalers Manufacturers Services

& Farmers

15 restaurants 11 furniture and wood 1 feed, fertilizer and 2 doctors/1 clinic

27 fruit and fittings makers farm goods 2 banks
vegetable vendors 9 metal fabricators 4 1 plastic sheeting, 8 vehicle repair
6 clothes vendors tailors ropes, and sacks 3 electrical items,
23 small item 1 weaver 1 grains: rice, corn radio & TV repair
roadside dealers 3 mat and wall shops
4 furniture shops hanging makers 1 building and office
2 grocery stores 2 soft furnishings cleaning service
1 shoe shop makers 2 security firms
4 hardware and farm 2 cement block 1 equipment rental
supply stores makers firm
8 nursery schools
3 bicycle repair
services
 Investigating or Assessing your
own Environment (Outdoor-Indoor)
 Resources from nature,
 Abilities and skills of people ,
 Institutions, Industries existing in your own

environment,
 Import Substitution,
 Publications,
 Trade fairs and exhibits
 Using Experiences (Indoor)

 Ask Yourself about Your Own Experience:

- Were there things/services you wanted to
buy but these were not locally available?
- Were you unhappy with products/
services you bought? Do you think you
can do better?

 Listen to other People’s Experience

To summarize Idea Generation
 First step – look for many opportunities such
as:
◦ Personal hobbies and interests
◦ Everyday experiences, travel, and adventures
◦ Suggestions from family members and friends
◦ Problems that need solutions
◦ Problems with existing products
◦ Books, magazines, news
◦ Observing, listening around you
YOUR IDEAS
LIST
 Analyze Your Business Ideas & Select the Best One

SCREEN YOUR IDEAS LIST

a. Knowledge and Information
- How much do you know about the products or services for this business?
- What experience do you have to help you to run this business?
- What skills and knowledge do you have?
b. Market
- How do you know if there is a need for this business in your area?
- Who will the customers be, for this particular business?
- Will there be enough customers?
- Can the customers afford the products or services?
- Will this be the only business of this kind in your area?
- How will you compete successfully?
- How will you supply the quality of goods and services the customers want?
c. Finance and Technical
- Why do you think this business will be profitable?
-Do you think you will be able to get the finances to provide
what is needed?
-Where will you get the resources to start this business?

d. Management
-Can you imagine yourself running this business in ten years?
-How does running your business suit your personal
characteristics and abilities?
-Are you interested enough in this type of business to put a lot
of time and effort into making it a success?
Once you have generated a number of business
opportunities and idea, the next step is to select and
screen your ideas based on :

1. Personality and Personal Preferences

◦ Personal preference
◦ Education, skills and experience
◦ Work experience
◦ Support from family and friend
2. Characteristics of a good business
◦ Demand for product
◦ Availability of skills, raw materials,
technology, and capital
◦ Profitability
HOW TO SCREEN YOUR IDEAS IN THE LIST? Entrepreneurs
must talk to: Key Informants, Customers, Suppliers, Wholesalers
and Competitors:
From Customers From suppliers From Competitors
• Where do you buy this product • How easily can you get • How many other competitors
or service? these products? are supplying my product?
• Where else could you get this • Are they always • Is the demand for the product
product or service from? available? constant or does it change
• Why do you buy from X? • What kind of quality is throughout the year?
• How often do you buy? available? • What else would people buy?
• What price do you pay? • At what price?
• What do you think of the quality • What terms of credit can I
of the product or service? From
get?wholesalers From key
• Is there any way it could be
improved?
• How much would my
materials cost at a given
informants
• How will this business help
• What is important for you – quantity?
• How reliable is the people?
Style? Quality? Packaging?
• How much do people need
Timeliness of service? Location? supply?
• Who else supplies these the product or service?
Price? Service?
• What do you think is
materials?
• Any concern with storage, important people?
transport?
 2 or 3 Probable
Businesses to Undertake

The screening of business ideas will

narrow down business ideas in the
list to 2 or 3 that would fit to ones
personality, knowledge/ information,
skills & experience.
 SWOT ANALYSIS
POSITIVE NEGATIVE

Controllable Strengths Weaknesses

Factors
Positive factors that contribute to the Set of problems, difficulties
favorability of a business or shortcomings
Examples: encountered by the
Cheap raw materials business
Skilled employees Examples:
Ease of management Inexperienced owner
Small Capital outlay Lack of working capital
Poor location
Uncontrollable Opportunities Threats
Factors
Positive factors that are not within the Negative factors that are
control of the business beyond the control of the
Examples: business
Absence of similar Examples:
Products in the market Rising costs
New markets being developed Raw material
 What is a business?
A Business – is an undertaking or venture
for the primary purpose of making a gain
or profit

“If a man goes into business with only the

idea of making money, the chances he
won’t” – founder of hallmark card
Forms of Business Organizations
 Single proprietorship/sole proprietorship –
owned by one person only
 Partnership – owned by two or more persons

who contribute property or services into a

common fund
 Corporation – whose common fund or capital

is divided into shares of stock. The owners

are called incorporators or stockholder
 Cooperative – group of people sharing

resources for capital formation, having equal

rights and privileges.
Common types of Business
 Service Business – principal undertaking is
selling of one’s service
 Trading or Merchandising – buys & sells of

items or articles on the same form

 Manufacturing business – buys an items (raw

materials) and convert them into another

form of items (product)
 Investment business – invest or lend money

and collect the same with interest

Business Category
CATEGORY CAPITAL ASSET NO. OF
SIZE EMPLOYEE
Micro enterprise Below Php3 Below 10
Million employee
s
Small Enterprise P3 Million – P15 10 – 99
Million employee
s
Medium – Large Scale More than P15 100
Enterprise million employee
s or more
 YOUR OWN BUSINESS IDEA!!!
Activity

My business idea:

Type of business

Retailing Service providing

Wholesaling Manufacturing

Agriculture, forestry or fishing

My products or services will be:

My customers will be:

The needs of the customers that will be satisfied are:

Skills and experience and knowledge I have of this type of business:

I have chosen this business idea because: