ENTREPRENEURSHIP
What is ENTREPRENEURSHIP?
ENTREPENEURSHIP
the process of designing, launching, and
running a new business which is often
initially a small business offering a
product, process, or service for sale or
hire
What is an ENTREPRENEUR?
ENTREPRENEUR
a person who starts, organizes and
manages any enterprise, especially a
business, usually with considerable
initiative and risk; running a
small business with all the risk and reward
of any given business process
Who can be an ENTREPRENEURSHIP?
ANYONE
Can be an
ENTREPRENEUR!!!!
BASIC
BUSINESS
OWNERSHIP
SOLE
PROPRIETORSHIP
A business
owned and
managed by
one
individual;
the business
and the
owner are
one and the
same in the
eyes of the
law
ADVANTAGE OF SOLE
PROPRIETORSHIP
Simple to create
Least costly form
Profit incentive
Total decision-making
No special legal
restrictions
Easy to discontinue
DISADVANTAGE OF SOLE
PROPRIETORSHIP
Unlimited personal
liability
Limited skills and
abilities
Feelings of isolation
Limited access to
capital
Lack of continuity
of business
PARTNERSHIP
An association
of two or more
people who co-
own a business
for the purpose
of making a
profit
ADVANTAGE OF PARTNERSHIP
Easy to establish
Complementary skills
Division of profits
Larger pool of capital
Ability to attract
limited partners
Little governmental
regulation
Flexibility
Taxation
DISADVANTAGE OF PARTNERSHIP
Unlimited liability of
at least one
Difficulty in
disposing of interest
Lack of continuity
Potential for
personality and
authority conflicts
Partners bound by
law of agency
CORPORATION
A business that is
chartered by a
state and legally
operates apart
from its owners.
Owned by
stockholders who
have purchased
units or shares of
the company
ADVANTAGE OF A CORPORATION
Limited liability
of stockholders
Ability to attract
capital
Ability to
continue
indefinitely
Transferable
ownership
DISADVANTAGE OF A CORPORATION
Cost and time in
incorporating
Double taxation
Potential for
diminished incentives
Legal requirements
and red tape
Potential loss of
control
What are the things
to consider in putting
up a business?
Analyze the potential market
of your business
Things that I will
ask myself first in
putting up a
business
Is there a viable
market for the product
or service you want to
sell?
How old are your
potential customers?
What do they do for a
living?
Is your product or service
attractive to a particular
ethnic or economic
population?
Will only wealthy people
be able to afford it?
Does your ideal customer
live in a certain type of
neighborhood or area?
Establish the size of your
potential market
It's important to be
as specific as
possible in regard
to your market and
your product.
Identify your company’s initial
needs.
What will you
require to get
started??
Prepare product samples
What exactly your product
will look like?
What materials will you
need?
Research possible locations
for your business
Estimate how much
space you require
and how much
money you’ll need to
allow for rent.
Determine your start-up cost
Keep in mind that it’s better
to include every element you truly need
along with a reasonable estimate of the
cost of each item, so you don’t run out of
money or default on your loans.
Be honest and
conservative in your
estimates, but also
be optimistic.
Put yourself in the shoes of
potential investors
ASK YOURSELF…..
If I were going to invest X
amount of dollars into a
concept or I
dea, or even a product, what
would I want to know?
Identify potential investors
Structuring
your business
Define your company goal
What will you accomplish for others?
What products and services will you
produce or provide?
What will your product or service
enable people to do better, more cheaply,
more safely, or more efficiently?
Choose a winning strategy
The first step in
selecting an effective
strategy is to identify a
competitive advantage
for your product or
service
Design your company
Consider how will you hire
and organize your
workforce. By the time you’ve
reached this stage of
thinking about your
potential business concept,
you’ll probably have a good
idea of the number of people
you’ll need and the skills
they’ll require to get your
enterprise up and running
Consider the practical issues
of running a business
Think about your role as
leader or boss of the business.
As you think about hiring
personnel and organizing
your workforce, you must also
confront your desire and
ability to be a good boss
Decide on a marketing plan
Potential investors, staff, and
partners won’t be convinced that
your idea can succeed until you’ve
established well-researched and
effective methods of contacting
your customers––and the
assurance that once you’ve
reached them, you can convince
them to buy your product or
service
Consider How Will You Reach Your
Customers….
What will you say to persuade and
convince customers that your product or
service is better value, more timely, more
useful, etc. to the consumer than the rival
product or service?
If it currently has no rival, how will you
properly explain the purpose of and the
consumer's need for the product?
Consider How Will You Reach Your
Customers….
What advertising and promotional
efforts will you employ?
Where can you locate lists of the greatest
concentrations of children under the age
of eight or whatever group constitutes
your market?
Build a dynamic sales effort
The word “sales” covers all the
issues related to making contact
with your actual customers once
you’ve established how to reach
them through your marketing
campaign.
In a nutshell, this part of your business
plan is about how you will attract
customers or clients for your product
or services.
How to write a
business plan?
Organize all the relevant information
about your business
Begin creating section headings and
putting the appropriate information under
the appropriate headings. Effectively
separating your business' unique approach
to each of these headings will organize
your plan in a way investors find useful:
Title Page and Table of Contents
Executive Summary, in which you
summarize your vision for the company
General Company Description, in which
you provide an overview of your company
and the service it provides to its market
Products and Services, in which you
describe, in detail, your unique product or
service
Marketing Plan, in which you describe
how you'll bring your product to its
consumers
Operational Plan, in which you describe
how the business will be operated on a
day-to-day basis
Management and Organization, in
which you describe the structure of your
organization and the philosophy that
governs it
Financial Plan, in which you illustrate
your working model
for finances and your need from investors
Write the executive summary
last
The executive summary is basically
your big appeal to investors, or
really anyone who reads your
business plan, that should
summarize and articulate what it is
that's great about your business
model and product. It should be less
about the nitty-gritty details of
operations and more about your
grand vision for the company and
where it is head. . . . . . . . .
Gather all the information together and prepare
multiple drafts
Put the business plan
together and articulate
all your thinking,
research, and hard work
into a comprehensive
description of your
structure and service
Sell yourself and your business
The idea of
the business
plan is to
present
yourself in
the best
light.
Present and explain your financial data
How will you convince others to
invest in your endeavor?
By having clear, transparent and
realistic financial information
that shows you know what
you're talking about and that
you're not hiding anything.
BUSINESS
PLANNING
I. EXECUTIVE SUMMARY
Background and objectives
Product and Mission
Short and long term goals
II. COMPANY SUMMARY &
MANAGEMENT
Business ownership and legal details
(natural person or corporation, names,
a. Company structure (Who are the officers – give
positions only - of the company?)
b. Operations overview (What departments will
handle which tasks? Will you outsource independent
construction contractors? Will you have in-house sales or
just list with real estate agencies?)
c. Business location (Where is your principal office?
Marketing office, if any? Showroom?)
III. PRODUCT
Project Description
Other benefits (Proximity to urban center?
Natural landscapes view? Security?
Discounted price for pre-selling? Perfect
climate of the townhouse location?)
a. How can the product be availed?
(Discounts? Payment modes? Financing
options?)
IV. MARKET ANALYSIS
a. Industry performance (Are housing
prices going up? Are prices of
construction materials stable? )
b. Competitor Analysis (Who are your
direct competitors? What are their
locations? Who are your indirect
competitors?)
c. SWOT Analysis (Strengths?
Weaknesses? Opportunities? Threats?)
V. Sales and Marketing Strategy
a. Demographics (Who are your target
customers? What do they value? What is
their average income? What are their
lifestyle habits and needs?)
b. Pricing (How much will the unit cost?
What is your margin?)
c. Sales and Marketing Plan (How will
your target market know of the offer? What
kind of promotion will you have, if any?)
VI. FINANCIAL PLAN
a. Project timetable (How long will your project
take? What are the critical milestones – permits,
general engineering, construction, capping off – of
the project and when will they be? What is your
grace period, if any?)
b. Cash Flow (What is your capital structure?
Construction expenses? Wage and salary expenses?
Overhead?)
c. Financial projections/Business Ratios (What
is your sales forecast? What is your return on
investment? Do you foresee any important event
which may affect this forecast? )
