INTRODUCTION TO -​ more than the venture capitalist but

ENTREPRENEURSHIP also the one who managed the

Entrepreneur venture.
-​ It came from the French word Alfred Marshall
“entrepredre” -​ linked Say’s and Mill’s ideas claiming
Entrepredre that the entrepreneur
-​ between taker, or go between -​ was one who coordinated the four
factors:
Richard Cantillon, Anne- Robert Jacques ❖​ Land
Turgot, and Francois Quesnay. ❖​ Labor
❖​ Capital
Richard Cantillon ❖​ Organization
-​ First used the word entrepreneur in Entrepreneur
academics -​ has evolved such that he was also
-​ Economist identified as an
-​ Essai sur La Nature du Commerce ◆​ arbitrageur (Say)
en General. ◆​ a manager distinct from a
-​ “Bearing of risk by engaging in capitalist (Mill)
business without an assurance of ◆​ a coordinator (Marshall)
the profits”
OTHER “WHO” CONCEPTS OF
Daniel Defoe ENTREPRENEURSHIP(20TH CENTURY)

-​ The Unexpurgated Robinson Frank H. Knight

Crusoe state “Alone on the island Two different kinds of risk:
he is altogether a man of projects, a -​ Capable of being measured
“projector” and “adventurer,” -​ Objective probability that an
Seventeenth Century - Eighteenth event will happen
Century Ex. shifted from the entrepreneur to
-​ Entreprendre was highly related to another party by insurance
risk-taking -​ Un-measurable
19th century -​ no objective measure of the
Jean Baptiste Say probability of gain or loss
-​ portrays the entrepreneur with his Ex. inability to predict consumer
knowledge and judgment as demand.
someone who sought opportunities In Knight’s view, the function of the
to earn profits by reallocating manager thus does not itself imply
resources from areas of low entrepreneurship.
productivity to areas of high
productivity by describing an Joseph Schumpeter
entrepreneur in terms of behavior. -​ innovation is the driving force not
John Stuart Mill only of capitalism but also of
-​ describes the entrepreneur as economic progress in general
someone who was
 -​ that entrepreneurs are the agents of -​ as changing the value and
innovation satisfaction obtained from resources
In Schumpeter’s discourse, by the consumer (defined in demand
entrepreneurship was no longer entirely terms) and innovation to be the
focused on the “who” of the concept but specific instrument of
more on what the “who’s” actions were. entrepreneurship.

The Five Types of Innovation according Entrepreneurship is the mindset and

to Joseph Schumpeter: process to create and develop economic
activity by blending risk-taking, creativity
a. Product and/or innovation with sound
-​ The introduction of a new product or management, within a new or an existing
quality organization.
-​ Combination of two existing products -​ Commission of European
to create an entirely new product Communities
b. Process
-​ The introduction of a new method of PERSONAL ENTREPRENEURIAL
production COMPETENCIES
c. Business Model
-​ Opening a new market THE PLANNING CLUSTER(Knowledge)
Characteristics:
Schumpter’s third kind of innovation: ●​ Goal Setting
-​ the opening of new markets as it has ●​ Information Seeking
recognized that among commuters ●​ Systematic Planning and
there exists a substantial number Monitoring.
who were willing, needed and could
afford to avail of the services of a Successful entrepreneurs rarely
ride-sharing company like theirs. go into any business venture without a plan.
d. Source of Supply
-​ The conquest of a new source of THE ACHIEVEMENT CLUSTER(Abilities)
supply of new materials or parts Composed of:
e. Mergers and Divestments ●​ Opportunity Seeking
-​ Organization of any industry ●​ Persistence
●​ Commitment to Work
Ludwig Von Misses ●​ Risk Taking
-​ argued that while innovation was an ●​ Demand for Efficiency and Quality
important factor of entrepreneurship
it is not entirely what makes him THE POWER CLUSTER(Attitudes)
one. Composed of:
Peter Drucker ●​ Persuasion
-​ entrepreneurship can be defined as ●​ Negotiation
changing the yield of resources ●​ Self-confidence
(seen in supply or production terms)
ENTREPRENEURSHIP AND ITS SOCIAL -​ Entrepreneurs are known to know
IMPACT even the tiniest details of their
ventures.
ENTREPRENEURSHIP AND ITS SOCIAL Ex. Richard Branson: Virgin Group
IMPACT
IMPACT OF ENTREPRENEURSHIP
Entrepreneurs identify opportunities in ●​ Entrepreneurship Spurs Economic
the market Growth
-​ Entrepreneurs actively seek our ●​ Entrepreneurship Creates Jobs
opportunities to pursue and exploit. ●​ Entrepreneurship Bring Innovations
-​ It is one of the more important skills ●​ Entrepreneurship Creates Wealth
that entrepreneurs must have.
ENTREPRENEUR AND HIS JOURNEY
Entrepreneurs process market Opportunity may be the chance to meet a
information market need (or interest or want) through a
-​ Most successful entrepreneurs creative combination of resources to deliver
identify opportunities by merely superior value.
observing and having an
enthusiastic willingness to learn and Two Types of Opportunities:
understand. ●​ Tacit - a situation that is difficult to
Ex. AirBnB founders Brian Chesky and Joe codify, articulate or communicate, in
Gebbia which a person can create a new
means-ends framework for
Entrepreneurs bring innovation recombining resources.
-​ Innovation is generally what sets
them apart from businessmen and ●​ Codified - as a situation that is
managers. well-documented, articulated or
communicated
Entrepreneurs take and accept risks -​ a person can create a new
-​ People, generally reject new ideas means-ends framework for
and do not instantly accept what is recombining resources.
being introduced.
-​ Entrepreneurs, willingly take and OpportunityRecognition:
accept those risks. (1) sensing or perceiving market needs
and/or underemployed resources​
Entrepreneurs establish new venture and (2) recognizing or discovering a “fit”
improve existing ones between particular market needs and
-​ Entrepreneurs establish new specified resources
ventures and improve existing ones. (3) creating a new “fit” between heretofore
Ex. Elon Musk: SpaceX and Tesla separate needs and resources in the form of
a business concept
Entrepreneurs are managers as well as
leaders Personal Evaluation
Realized in their work that if different types
of opportunities are identified, it is Skills:
necessary to bring the entrepreneur back
into the picture to understand the Creativity
relationship between the type of opportunity -​ refer to the act of producing new
and the entrepreneurial process. (Smith, ideas, approaches or actions, while
Matthews, and Schenkel (2006) and innovation is the process of both
Shane (2003)) generating and applying such
creative ideas in some specific
Ex. Vicky Belo context.
-​ seeing or performing something in a
Personal Goals manner different from what was
Pointed out the importance of self-defining thought possible or normal
goals as they do motivate some people. previously.
(Brunstein and Gollwitzer (1996))
Brainwriting
Wishes vs. Goals -​ It is a method where a person writes
whatever comes to mind.
Wishes
-​ are imagined future states. Problem Solving
Goal -​ Prior knowledge creates a
-​ is something that we want to knowledge corridor that allows
achieve. It is also a specific, people to recognize certain
measurable occurrence, object, or opportunities
accomplishment that one would like Experiential Learning
to achieve, or obtain in the future. -​ The process of learning by doing
-​ develop concrete action plans to Vicarious Learning
take you to where and what you -​ The process of learning that allows
want in the future. individuals to learn from the
experience of others
SMART Needs
-​ is a basic requirement that a person
S - Specific wishes to satisfy.
M - Measurable -​ basic parts of human life, and are
A - Achievable therefore not created by businesses.
R - Realistic
T - Time-Bound Opportunities can be identified through
other ways like:
Types of Goals: •Existing product/service provider
●​ Short-Term Goals weaknesses
●​ Medium-Term Goals •Application of existing products or new
●​ Long-Term Goals functions
•Cross-border limitations
THE ENTREPRENEUR AND HIS and wants in order to get the right product to
PERSONAL INITIATIVE the right place at the right time”
Entrepreneurship requires action. ✓ “Marketing is the performance of
business activities that direct the flow of
Entrepreneurial Process: goods and services from producer to
●​ Opportunity Identification consumer or user”
●​ Preparing the Start-Up
●​ Running the Business Business Perspective:
Marketing simply means ascertaining
Personal Initiative and Self-Motivation what a consumer wants and providing it
to the consumer at a profit.
Personal Initiative is behavior by an
individual that is characterized by: What is involved in Marketing?
1. Being Self-starting • Ascertain what consumers want and
-​ implies that an entrepreneur starts provide it to them at a profit!
doing something without being told. • Meet the needs and wants of customers!
-​ entrepreneur does not copy from • Create a good exchange environment!
competitors but goes the extra mile • Creates time, place and possession
and pursues a goal that leads to utilities!
something new or innovative. Customer Needs and Wants
2. Being Proactive Needs
-​ is to have a long-term focus. -​ it is a basic requirement that an
-​ allows anticipating future problems individual wishes to satisfy.
or opportunities. -​ are a basic part of human life and
3. Being Persistent are therefore not created by
-​ implies that an entrepreneur does businesses.
not give up when facing obstacles or Wants
problems but finds other ways to -​ hand is a desire for a specific
achieve the goal. product or service to satisfy the
underlying need.
MODULE 2
THE ENTREPRENEUR AND HIS Customers and Consumers
MARKETS Customer
Common Definitions: -​ is the one who purchases and pays
✓ “Marketing is a social and managerial for a product or service.
process by which individuals get what they Consumer
need and want through creating and -​ is the ultimate user of the product or
exchanging products and value” service.
✓ “Marketing is the management process -​ may not have paid for the product.
that identifies, anticipates and supplies
customer requirements efficiently and Exchange
profitably” -​ the act of obtaining a desired object
✓ “Marketing is the all-embracing function from someone by offering something
that links the business with customer needs
 in return. Kotler and Armstrong 2. Identify the needs of those customers​
(1995) 3. Develop products or product concepts to
meet the needs of the customers
Demand(s) 4. Take decision on other marketing mix
-​ When customer wants are backed elements
up by buying power ●​ Pricing
-​ To stimulate demand, entrepreneurs ●​ Promotion
have to not only make products that ●​ Distribution
consumers want, but they also have 5. Put in place means to continuously
to make them affordable to a monitor your Market.
sufficient number.
Alternatives to Marketing Concept:
BUILDING A MARKETING ORIENTED ✓ The Production Orientation/Concept
BUSINESS -​ A production oriented business is
The marketing concept is a marketing said to be mainly concerned with
philosophy that believes that achieving making as many units as possible.
organizational goals depends on -​ The concept of mass production
determining the needs and wants of target springs from this view.
markets and delivering the desired Implications:
satisfaction more effectively and efficiently ▪ Consumers will buy the product if it is
than competitors do (Kotler and Armstrong, available
1995). ▪ Consumers buying decision is influenced
by price
The marketing concept/orientation has the ▪ The business concentrates on producing
following implications: ▪ The business concentrates on improving
✓ The business conceives its mission as the production process and lowering the
that of satisfying the identified needs of a price
certain target market ▪ The organization needs no effort to sale.
✓ The business recognizes that to satisfy
these needs, there must be an undertaking ✓ The Product Orientation/Concept
to identify and learn these needs and how -​ concept considers a business that is
they will be satisfied obsessed with its own products
✓ The business recognizes that consumers (perhaps even arrogant about how
have varying tastes, incomes and habits, good they are).
and that there are various competitors Implications:
attempting to satisfy the consumer needs. ▪ The consumers know the different brands
of products on the market.
Marketing starts before production. ▪ Consumers’ buying decisions are
influenced by the product, quality features,
The following activities/tasks should performance and price.
be well developed: ▪ The business concentrates on selling
whatever has been produced without caring
1. Identify the markets you want or intend to for the requirements of the consumer.
serve
▪ The organization does not make any effort 2. Shift from one product to another, or
to identify the needs of the consumer but modify your products to capture better
simply concentrates on producing good marketing
quality and fairly priced products. opportunities.
▪ The process of marketing begins after 3. Keep quality of product/service to
goods have been produced and ends with acceptable standards or as per the needs of
their sale. the customers.
4. Test your product (and its price) on the
✓ The Selling Concept/Orientation market before you launch it.
-​ assumes that consumers buy, but
they do not buy enough and will buy MARKET
more if influenced by some selling -​ is a set of actual and potential
and promotion efforts buyers of a product.
Implications: -​ an arena for potential exchange.
▪ Consumers buy, but not enough -​ is just part of the wider concept of
▪ Consumers can be induced to buy by marketing.
some sales effort Checklist for Market Analysis
▪ The organization is aware of these 1. Who are your customers, both existing
conditions and its main task is to induce the and prospective? Their demographic profile,
consumer to buy more of its product economic profile, buying power and other
▪ The process of marketing here also begins characteristics.
after production 2. What do they buy? Who exactly buys
what? What are their needs and wants?
✓ The Societal Marketing Concept 3. Why, how, when and from where do they
Kotler’s societal marketing concept: buy? Do they buy once a day, weekly,
-business should not only be concerned monthly, once in their life time? Do they buy
with consumer satisfaction, but should keep in the morning, afternoon, evening? Who
in mind public interests and welfare. makes and influences the customer buying
Green Marketing Concept: decision? Are the buyers the ultimate users
-​ called the green movement of the products?
-​ businesses should go beyond that 4. How much do they pay for
and ensure that they should not similar/competing products? How much are
deplete the resources that create the they willing to pay for your product? Are
necessary ecological balance to they willing to pay for your product?
maintain the various gifts of nature 5. Where are they located? Are they within
to mankind. your operating area, in the next area, district
PRODUCT STRATEGY: etc.?
1. Design a product that is either:
✓ Unique Market research will help you to know:
✓ High quality ●​ Customers
✓ Low-priced ●​ Market Size
✓ Satisfies other customers’ needs! ●​ Competition
THE MARKETING MIX -​ The entrepreneur should decide on
The 4Ps for Products and 7 Ps for how to inform the customers,
Services through what media and what
These elements include: inducements to make.
1. Product -​ Advertising on radio, television,
-​ is something that is offered to the newspapers etc. is the most
customers for purchase to satisfy common form of promotion.
their needs and wants. Addition for Services:
-​ Products range from purely physical 5. Process
products to services. 6. People
The key product decisions to be made by 7. Physical evidence
the entrepreneur:
1. Product development COMPETITOR ANALYSIS:
2. The range of products (product width and 1. Who are your competitors?
depth) 2. How do they conduct their business –
3. Product quality what are their products or services?
4. Packaging and labelling 3. How good are their products, prices,
5. Maintenance promotional and distribution activities?
6. Service, guaranties and warranties 4. What are their strengths? What are their
7. Comparison with competitors weaknesses?
5. What are their sales levels?
2. Price
-​ the value attached to a product. POSITIONING YOUR ENTERPRISE:
Important Considerations in Pricing: -​ Pick product/services that are
1. The demand for your product important for customers
2. The price that your competitors are -​ Cross the attributes with your
charging competitors and estimate your and
3. Cost of your product your competitors’ performance on
each attribute.
3. Place/distribution
The key placing/distribution decisions to be DESIGNING A MARKETING STRATEGY
made by the entrepreneur are: -​ is a means designed to effectively
1. Distribution channels and number of implement a business’s marketing
outlets to reach customers activities in order to sell and make a
2. Strategic location of the business reasonable profit.
premises 1. How they will segment the market.
3. Own building or rent premises 2. The target market.
4. Public infrastructure facilities
5. Transport and logistics facilities ●​ POSITIONING
-​ is the basis for marketing mix
4. Promotion decisions.
-​ The key placing/distribution ●​ MARKET SEGMENTATION
decisions to be made by the -​ This involves dividing the market into
entrepreneur are: smaller clusters or segments with
 similar characteristics to help direct -​Specify what, when, and how
an enterprise’s marketing efforts. something will be done.
-​ Segmentation according to -​ help entrepreneurs staying on track
Demography in the sense that the entrepreneurs
-​ Segmentation according to do not forget what they are
geography supposed to do next and that they
TARGET MARKET can stick to their plan in the face
-​ This is a specific market segment of problems which persistence in
toward which an enterprise aims its goal pursuit.
marketing activities. Planning
-​ allows the entrepreneur to develop
THE ENTREPRENEUR AND HIS PLANS cues that signal the necessity or
Goals and Goald-Setting opportunity to act.
-​ Goals are the starting point for
actions. Development Plan
Goals are discrepancies between -​ helps you plan your next steps and
a current and a future state. helps you get an idea of where you
-​ Goals facilitate being self-starting are and here you are going to be
because they indicate what is still to with your company in the following
do. weeks and months.
-​ Goal specificity means that the goal -​ include the steps and milestones
is measurable and terminated. you have accomplished so far.
-​ Goals, particularly if they are -​ is an overview of the work that
specific, challenging, and the remains to be completed before you
entrepreneur is committed to the can launch your business.
goal, have several functions. Being Persistent
-​ Goals stimulate strategic planning. -​ imply that goals, information
SMART: seeking, plans, and feedback are
✓ Simple - not complicated what is to do protected against interferences or
next disturbances.
✓ Measurable - how much exact figure Self Regulation
✓ Achievable - challenging goals as high Self-regulation refers to the activities of:
as possible
✓ Realistic - you can (realistic) and want to ✓ Activating or inhibiting
achieve ✓ Prolonging or abridging
✓ Time-Bound - exact time you want to ✓ Organizing and structuring
achieve the goal ✓ Modifying
✓ Monitoring.
Plans and Planning
Plans Goal Setting
-​ determine the necessary steps to -​ First mechanism of self-regulation
achieve the goal and they determine
the sequence of the necessary Self-Monitoring
steps. -​ “Status-check”
 -​ the process by which the 3. Partners;
entrepreneur maintains a record of 4. Employees; and the like.
his or her progress towards goal
attainment. VISION
Monitor Your Actions! -​ is an ideal and unique image of the
Self-Evaluation and Self-Consequation future that reflects shared values to
follow self-monitoring. which one should aspire.
-​ These processes include the -​ It is a projected mental image of
judgment of the actions taken so far, products, services, and
evaluating the progress towards goal organizations a business leader
attainment and drawing the wants to achieve.
consequences from this evaluation. A good vision should be…
●​ Set Yourself Goals! ●​ Brief
●​ Make Action Plans! ●​ Clear
●​ Be Pro-Active! ●​ Abstract
●​ Be Persistent! ●​ Challenging
●​ Evaluate Yourself – Hard and Fair! ●​ Future Oriented
●​ Control Your Emotions! ●​ Stable
●​ should have the ability to Inspire.
THE ENTREPRENEUR AND HIS The Difference between Vision and Goals:
STRATEGIES Goals - should be specific in the sense that
they should be measurable and terminated.
TRANSACTIONAL LEADERSHIP
-​ is a quid pro quo influencing Visions
process. - should be more abstract and they
-​ the leader utilizes rewards and should not completely specify the way how
coercive power to get people doing to achieve positive outcome described in
what the leader wants them to do. the vision.
-​ Describes the desired future position
TRANSFORMATIONAL LEADERSHIP of the company.
-​ is based on charisma, vision, values
and an emotional appeal to influence MISSION
other people. Mission Statement
-​ is a brief description of why a
IMPORTANCE OF LEADERSHIP IN company or nonprofit organization
ENTREPRENEURSHIP exists.
As an entrepreneur you have to… -​ used to provide focus, direction, and
●​ Influence inspiration to employees while it tells
●​ Convince customers or clients what to expect
●​ Inspire from the business.
●​ Motivate -​ helps you achieve your vision.
Needed Resources: -​ defines the company's business, its
1. Equipment; objectives and its approach to reach
2. Finances; those objectives
The External Environment The Industry Environment
●​ Existing Competitors
-​ might reduce prices or increase the
quality of their products and services
and thus reducing the profit potential
of the industry.
●​ New Entrants
-​ lead to a higher density of
competitors which likely reduces the
profit margins of the existing firms.
●​ Substitute Products
-​ are products that might be able to
fulfill the same needs but they are
not yet available
●​ The Customers
-​ influence the attractiveness of an
industry because their power to
enforce a lower price for the same
The Macro-Environment
quality or a better quality at the
Consists of:
same price might be high or low.
●​ Society
●​ The Suppliers
-​ includes aspects of values and
-​ can be high or low and accordingly
attitudes that prevail but also trends
their control to charge higher
that emerge and demographic
changes that take place.
Internal Conditions
●​ Economy
Characterized by two features:
-​ affects business for example through
-​ The firm’s resources
interest rates, inflation, the economic
-​ Its capabilities to exploit the
trend, and rate of unemployment.
available resources.
●​ Ecology
Resources
-​ comprises aspects of available
Tangible
resources, pollution, and all natural
-​ resources include for example,
phenomena that happen at or near
equipment, facilities, raw materials,
the business’ location.
and financial resources.
●​ Politics
Intangible
-​ issues of laws and regulations,
-​ include for example know-how,
judiciary, organization and stability of
information, brand strength, patents,
the political system, and all political
and copyrights.
changes
Capabilities
●​ Technology
-​ The firm’s capabilities are its skills to
-​ may be the source for new products
combine the available resources to
or services or new technological
create value.
breakthroughs may also render
existing products or services
obsolete.
Technology-Related Key Success 7. Customer guarantees and warranties
Factors 8. Clever advertising
1. Scientific research expertise
2. Technical capability to make innovative Skills-Related Key Success Factors
improvements in production processes 1. Superior workforce talent (important in
3. Expertise in a given technology professional services like accounting and
4. Capability to use the Internet for all kinds consulting)
of e-commerce activities 2. Quality control know-how
3. Design expertise
Manufacturing-related Key Success 4. Expertise in a particular technology
Factors 5. Ability to develop innovative products and
1. Low-cost production efficiency product improvements
2. Quality of manufacture 6. Ability to get newly conceived products
3. High utilization of fixed assets (important past the research and development phase
in capital-intensive / high fixed-cost and out into the
industries) market very quickly
4. Low-cost plant location
5. Access to adequate supplies of skilled Organizational Capabilities
labor 1. Superior information systems (important
6. High labor productivity for example in lodging industries)
7. Low-cost product design and engineering 2. Ability to respond quickly to shifting
8. Ability to manufacture or assemble market conditions (streamlined decision
products that are customized to buyer making)
specifications 3. Superior ability to employ the Internet and
other aspects of electronic commerce to
Distribution-Related Key Success conduct
Factors business
1. A strong network of wholesale distributors 4. Managerial experience
/ dealers
2. Electronic distribution via the internet Other types of Key Success Factors
3. Gaining ample space on retailer shelves 1. Favorable image or reputation with
4. Having company-owned retail outlets buyers
5. Low distribution costs 2. Overall low cost
6. Accurate filling of customer orders 3. Convenient locations
7. Short delivery times 4. Pleasant, courteous employees in all
customer contact positions
Marketing-Related Key Success Factors 5. Access to financial capital
1. Fast, accurate technical assistance 6. Patent protection
2. Courteous customer service
3. Accurate filling of buyer orders What is Strategic Management About?
4. Breadth of product line and product Strategic Management in a nutshell is all
selection about:
5. Merchandising skills • Determining a direction for the business to
6. Attractive styling or packaging survive and grow the environment
• Getting a competitive advantage ●​ Time
• Monitoring the environment (What type of -​ speeding-up the operating
competitors/customers/suppliers/employees procedure, delivering faster and
are out there?) guaranteeing timeliness constitutes
• Implementing the strategy a competitive advantage.
There are four (4) General Strategic ●​ Flexibility
Approaches, such as: -​ Customizing, identifying changing
1. Price leader customer’s demands, and flexibly
2. Quality adapting one’s product or service
3. Offer unique attributes (e.g., insulated lines provide a competitive edge and
paper cup, camera in cell phone, can be a viable strategy particularly
mp3-player in cell phone, special design) for smaller firms.
4. All new product/service
2. Low cost
-​ A firm pursuing this strategy aims at
THE SWOT ANALYSIS offering the same product with the
Strengths, Weaknesses, Opportunities, same quality at a lower price.
Threats Cost benchmarking means that the firm
The external environment may yield analyses the own costs with the cost
favorable (opportunities) or unfavorable structures of the competitors and identifies
(threats) situations for the business; and the in which phase of the production process
business itself may possess sufficient the highest difference is.
resources and capabilities (strengths) or
insufficient resources and capabilities 3. Niche
(weaknesses) to deal with external -​ implies that the business owner
environment. creates a new market.

Positioning the Firm: Possible Strategies OPERATIONS PLAN

In general, there are possible strategies the -​ describes the details about the
owner can pursue: necessary equipment, the
1. Differentiation production process, and the
-​ means that the firm offers the same necessary measures to ensure the
product or service that already exists quality of the product or service.
in the market (e.g., a cell phone) but -​ information on all incurring expenses
with different properties. and should be the starting point for
Three major aspects: the financial projections for the
●​ Quality business.
-​ means that the product functions Location
and meets the customer’s -​ The description of the location
requirements regarding its should include information on the
functionality, that the product is exact address, the surrounding area,
durable, and that the product is and the type of the business – if it is
reliable. for example retail, commercial,
industrial, or home-based.
Operating Procedure/Process
-​ depicts what is done and how is it
done to create value.
Two parts:
-​ The front end
- Includes how the products or
services are presented to the
customers, second, how the right
product is identified for the customer,
and third, how the purchasing
procedure will be carried out.

-​ The back end

1.​ Production cycle or the
production flow.
2.​ Order Flow
3.​ Operating Procedure

Quality Control
In the training, we will present five means
the business can set up as quality control
measures.
1. Standardize production procedure
2. Checklists (e.g., in appendix of the
business plan: how to build xy)
3. Training for new staff
4. Job descriptions
5. Complying with norms, laws, and
regulations.