ENTREPRENEURSHIP

BUSINESS PLANNING

Estrellita D. Bituin,MBA
1st Sem. A.Y. 2018-2019
OBJECTIVES
 Describe the 4Ms (Manpower, Method, Machine, Materials) of operations
in relation to the business opportunity
 Develop a product description
 Create a prototype product
 Select potential suppliers of raw materials and other inputs necessary
for the production of the product or service
 Discuss the value/supply chain in relation to the business enterprise
 Recruit qualified people for one’s business enterprise
 Develop the business model
4Ms of operations in relation to the
business opportunity

Manpower
Method
Materials
Machine
1. Manpower

 Management Team

 Hiring Human Resource

Management Team

- It is extremely important in any organization to make

appropriate assignments of responsibility for the
implementation of the marketing plan. In some cases, the
availability of a certain expertise may be uncontrollable.

- In any event, the entrepreneur must build an

effective management team and assign the
responsibilities to implement the marketing plan.
Hiring Human Resource

- Human resource is also an important

determinant of business location and
functioning. Factors such as the
availability of labor of different skill
levels, productivity and costs of labor,
flexibility of labor, etc. are important to a
business.
An effective hiring procedure includes the
answer to the following questions;

 What are the requirements of the jobs to be

filled?
 What kinds of persons are needed?
 How many persons are needed?
What are the requirements of the
jobs to be filled?

A. Job description

- it is a formal account of an employee's responsibilities.

- Our job descriptions contain the most common job duties list
for each position.

e.g. Manager Housekeeper Operator Sales lady

Supervisor Secretary Line Leader Service Crew
B. Job specification

- it is a statement of employee characteristics and qualifications

required for satisfactory performance of defined duties and tasks
comprising a specific job or function.

- A job specification could be considered a more precise job

description that details the exact educational degrees, experience, skills,
and requirements for a role.

e.g. Marketing Manager Sales Manager Branch Manager

Executive Housekeeper Housekeeping Supervisor
Service Master Sales Representative
Service Crew Broker
Accountant
 College Graduate
With Pleasing Personality
What kinds of persons With Good Moral Character
are needed? At least 5’5” for female
At least 5’10” for male
With License
No Tattoo’s
We are hiring 500 machine
operators How many persons
One most qualified manager are needed?
5 Sales Executives
2 CPA
2. Method
 Theconventional approach to marketing by
the marketer. Promotional activities such as;

Advertising
Publicity
Personal Selling
 Advertising–as with all marketing activity, is an
investment and creates opportunities for the
product to be discovered by the market.

 Publicity–Using the media through press releases,

talk shows, trade news which contributes to the
introduction of the new product or service.

 Personal Selling – the entrepreneur is the sales

person for the new enterprise. He or she is the
spokesperson, the ambassador, the representative
that makes it all happen.
 Just Do It

"finger lickin' good"

You're in good hands
3. Materials
 Suppliers
 Raw material procurement and planning are critical to success of
a start-up.

Suppliers
The suppliers used are generally based on a number of factors
such as price, delivery time, quality, and management assistance.

In some cases, where raw material are scarce or there are only
a few suppliers of a particular raw material, the entrepreneur has
little control over the decision. Since the price of suppliers,
delivery time and so on, are likely to impact many marketing
decisions, it is important to incorporate these factors into the
marketing plan.
Raw material procurement and planning are critical to
success of a start-up. The raw materials required may be:

 Domestically available (within the country).

As we know that our country is a resource rich country with
abundance of specific materials in different states.
Accordingly appropriate suppliers of raw materials have to be
selected.

 Imported from abroad

For importing the raw materials the Gov rules and
regulations have to be followed. The Director General of
Foreign Trade shall advise Central Government in formulating
export and import policy and implementing the policy
4. Machines
The next important step is choosing and ordering of right
machinery and equipment. The machinery and equipment
required in production and operation.

May be either domestically available or imported

The entrepreneur may also consult experts,

dealers/suppliers as well as users prior to making a selection
of equipment and machinery
Develop a Product Description
Product – is anything that is offered to the market to
satisfy consumer wants, needs, and demands. This can
include goods, services, people, and ideas.

 Create a Prototype
 Test the product prototype
 Validate it’s market acceptability
 What is
Prototype
Product?
Create a Prototype
Prototypes – first versions of the product

Prototypes can be expensive, since they require research

and development. However there are few shortcuts you can
try. Study the manufacturing process necessary to make your
product and see if you can come up with simplified versions.

Once the prototype is developed and tested, the product is

ready for test marketing.
Test the product prototype

 Test marketing involves selling the prototype in either

a real or simulated market environment.

 Standard test marketing introduces the product and

the marketing strategy in the actual environment

 While test marketing can reduce the potential for

failure and can identify weaknesses in the product,
advertising, prices, or distribution method, there are
also opportunities for astute competitors to ‘steal’
your ideas and launch before you do.
Validate it’s market acceptability

 This is done through simulation of test markets that will re-

create a market environment

 More recently, simulated test markets have also been

computer-generated. While this is relatively safe from
competitive interference, the biggest problem with
simulations is that they are artificial and do not always
reflect actual buying behavior

 Depending on your product, giving samples to friends and

family may be a convenient option for getting test market
of feedback.
Develop the Business Model
 Business model is a term used to describe a profit-
producing system that has an important degree of
independence from the other systems within an
enterprise

 Conceptualizations of business models try to formalize

informal descriptions into building blocks and their
relationships

 Business Process Modeling (BPM) is the activity of

representing processes of an enterprise, so that the
current (‘as is’) process may be analyzed and improved in
future (‘to be’)
Develop the Business Model
 Things to Avoid;

 Difficulties in satisfying customers

 Trouble maintaining market position
 Problems generating funding for growth
Develop the Business Model

 Things to Consider:

1. Acquire High-Value Customers

2. Value to Customers
3. Services with high margins
4. Customer Satisfaction
5. Market Position
6. Fund the Business
1. Acquire High-Value Customers – doesn’t mean rich customers, but
customers who are:
 easy to locate,
 allows you to charge a profitable price,
 willing to try your product

2. Value to Customers
There are a number of ways you can create significant value and
competitive advantage, include the ff:
 Unique advantages in features and benefits
 Better distribution through retail
 More complete customer solutions

3. Services with high margins

You can achieve high margins with other tactics, such as:
 Use a more efficient distribution channel
 Require less sales support and sales effort
 Have an industry
4. Customer Satisfaction
 High warranty costs
 Extensive technical support
 Extensive installation requirement

5. Market Position
 A good business model uses its resources to improve its
market position, adding new products, features and
customers or expanding into new applications.

6. Fund the Business

 Startup costs, operating capital, personnel costs and
overhead costs are just a small percentage of the funding
requirement for any business. The question is whether
the investments will have a high return and whether the
business can grow without substantial new investments
Motivation: Go Negosyo
 Go Negosyo organizes activities such as caravans, summits,
seminars, and mentoring sessions, where business
opportunities, business advice, and inspiring ideas are
shared.

 Many young people and students are among the participants

of the various events of Go Negosyo as well as viewers and
radio shows. Recently, Go Negosyo published a book entitled
“50 Inspiring Stories of Young Entrepreneurs” which features
the entrepreneurial ventures and adventures of young
people.
 ACTIVITY (by Group)
Create a brand name, logo, symbol, slogan, and jingle
for your product or service.

Do not forget the following in creating the brand:

memorability
meaningfulness
likeability
humor.

Present your brand in class.

SUMMARY:
 The 4M’s of business are manpower, method, material, and machine.

 Prototypes are the first versions of the product.

 A business model is a term used to describe a profit-producing system

that has an important degree of independence from the other systems
within an enterprise.

 The things to consider in making a business model are to acquire high-

value customers, to value customers, to give service with high margins,
to give customer satisfaction, and to have a market positioning.
REFERENCES:

 -Habaradas, R.,and T. Tullao Jr. Pathways to Entrepreneurship.

Quezon City: Phoenix Publishing House, 2016.

 -Macatangay, L. Entrepreneurship. Makati City: Don Bosco Press,

Inc., 2015.

 -Edralin, D. Entrepreneurship. Quezon City: Vibal Group, Inc.,

2016