ENTREPRENEURSHIP:
 Main Value Proposition is the unique selling
1.1 BUSINESS PLAN
 Entrepreneurs who plan to enter any business
endeavor must have a business plan on hand to
guide them throughout the process.
 There are business plans written prior to setting
up an enterprise. There are also business plans
that are written during the first few years of the
enterprise in order to guide the entrepreneur
on which strategies would be most beneficial
for the enterprise to take.
1.2. CONTENTS OF A BUSINESS PLAN
A. Business Concept
 It contains the essence of the enterprise in a
concise but powerful manner. It stresses the
value of the product offering to the target
customers who would most likely buy it.
 The product concept must then be translated
into a business model, that is, the formula on
how the enterprise exactly plans to make
money out of the business.
B. The Business Goals
 It shows the future and long- term prospects of
the enterprise.
C. Executive Summary
 It contains everything that is relevant and
important to the business audience.
 It is the synthesis of the entire plan.
 It highlights the good qualities of :
a) the business proponents and their partners
b) the enterprise organization and its
capabilities
c) the technology providers and their expertise
and experience
d) the suppliers and all major service providers
D. The Business Proponents
 It contains the information about the business
proponents or stakeholders such as the:
a) resource mobilizers and financial backers –
want to know who else are on board to share
the burden of raising money to see the whole
thing through
b)technology providers and applicators – want
to know if there will be sufficient funds to pay
for the technology
c)governance and top management – want to
know what strategies and performance
indicators are being proposed
d) operating and support team – want to know
what programs, activities, tasks and resources
would be in place
E. The Target Customer and the Main Value
Proposition
 The business proponent must be very precise
about the target audience or customers.
proposition of the enterprise.
F. Market Demand and Supply, Industry Dynamics and
Macro Environment Factors
 It is normal for the enterprise to actually
expand their product offerings to include other
segments of a bigger market.
 The business plan should estimate the total
market supply and demand for the product
offerings of the enterprise.
 It should determine then the major critical
factors that influence this market demand and
supply.
G. Product or Service Offering
 It contains the description, evolution and
justification of the product or service offering.
H. Enterprise Strategy and Enterprise Delivery System
 It should expound on the Enterprise Strategy by
mapping the competitive landscape and by
situating the enterprise and its competitors as
to their strategies and chosen positioning.
 It should also show how the Enterprise Delivery
System would enable the business to
implement the enterprise strategy.
I. Financial Forecast
 It discusses the financial returns, financial risks
and the financial contingencies of the
enterprise.
J. Environmental and Regulatory Compliance
 The business plan must articulate the laws,
rules and regulations governing the business
and the industry that the enterprise is in.
 It ascertains the permits, licenses and
proprietary requirements to secure the
enterprise.
K. Capital Structure and Financial Offering
 It discusses who are the investors, the
financiers and the partners.
 It must appeal to its target audience.
1.3. PRIMARY COMPONENTS OF A BUSINESS PLAN
(Simplified Format)
A. Business Concept discusses the industry, business
structure, particular product or service an entrepreneur
has in mind.
B. Marketplace Section describes and analyzes
potential customers and the competitions and how an
entrepreneur positions his product or service to beat it.
C. Financial Section contains the discussions on income
and financial flow of the business.
2. MARKET RESEARCH
 The entrepreneur should exert all efforts to
know the market he/ she wants to exploit.
2.1 Basic Questions in Market Research
There are seven basic questions that you must
ask in preparation for any market research.
1. WHY : The purpose and objective for conducting the
market research.
2. WHAT : Determine the scope and the limitations of
the market research to be conducted.
3. WHICH : Determines which segment of the market
must be studied; this must be the market segment that
the entrepreneur is eyeing.
4. WHO : Identifies who among the members of the
selected market segment will participate in the market
research.
5. WHEN : Determines the time and timing of the
research.
6. WHERE : Pinpoints the relevant location of the
market research.
7. HOW : Determines the methodology to be used for
the market research.
2.2. MARKET RESEARCH METHODOLOGIES
1. Focus Group Discussion
 is an interview by a facilitator of a small group
of people that normally lasts for an hour and a
half to three hours
 participants are selected because of their
knowledge about the topic
 the objectives must be clear and precise
 takes a great deal of planning
2. Observation Technique
 best way of gathering data about customers in
their natural setting without having to interact
to them
 simply observe people and record the event
3. Survey
 most preferred instrument for an in-depth
quantitative research
 respondents are asked a variety of questions
 can be conducted through telephone, personal,
and mail
4. Personal Interview
 simply asking a prospective respondent through
unstructured and open- ended questions
2.3. Customer Profiling
 In effect, when the entrepreneur starts doing
the market research, he or she is also beginning
to understand his or her customers and
therefore profiling them.
Methods of Customer Profiling
a. Demographics : gathering information about
the age, income classes, social/ reference groups, ethnic
background, religious beliefs, occupations and
domiciles.
b. Psychographics: defines the customers’
motivation, perception, preferences and lifestyle.
c. Technographics: classifies people according
to their level of expertise in using a product or a service.
D. Market Segmentation
 Customers with similar needs and wants and
similar willingness and ability to pay can be
grouped into one customer segment.
E. Market Aggregation
 Some prefer to appeal to broader market if
possible.
F. Market Mapping
 Refers to grouping customers and products
according to certain market variables
3. MARKET PLANNING
 Marketing is about creating and accumulating
customers.
A. POSITIONING
 has an enterprise perspectives
 is the way the customers perceive the
enterprise and its product or service in their
minds
B. PRODUCT
 is the tangible good or the intangible service
that the enterprise offers to its customers in
order to satisfy their needs and to produce their
expected results
 often identified with the brand names
C. PACKAGING
 does not refer only to the wrapper or container
of the product
 can mean the bundle of products or services
that are put together to attract customers
 can also mean the terms and conditions
attached to the sale or after-sale servicing
D. PLACE
 the geography and atmosphere of the
enterprise that have the best access to
customers
E. PEOPLE
 plays a crucial role in the success of the
enterprise
 aims to please the customers through
continuing service and product enhancements
 the regular contact points between the
enterprise and the market
F. PROMOTION
 is the explicit communication strategy adopted
by an enterprise to elicit patronage and support
not only from its customers but also from its
other significant stakeholders
G. PRICE
 depends on the business objectives set by the
enterprise
Prepared by: Ms. Sarah Cabajel