MODULE 4

METHODS TO INITIATE
VENTURES

GELEC
Prepared by:

Rebecca Q. Lising, MBA,MAEd

IBE-Instructor
Learning Objectives
01 To describe the major pathways and
structures for entrepreneurial
ventures 03 To identify and discuss the elements
involved in acquiring an established
venture.

02
To present the factors involved in
creating a new venture. 04 To define a franchise and outline its
structure

05
To examine the benefits and
drawbacks of franchising
THE PATHWAYS TO NEW
VENTURES FOR
ENTREPRENEURS
CREATING NEW VENTURES

New-new Approach

New products or services frequently enter the

market.

Products have been introduced as a result of

Research and Development efforts by major
corporations.

 Most business ideas tend to come from

people’s experiences.
CREATING NEW VENTURES

New-Old Approach

 they take an existing product or service and apply

it to a new industry. Essentially, they're just taking
an old product and applying a new spin to it.

 An individual “piggybacks” on someone else’s idea

by either improving a product or offering a service
in an area in which it is not currently available.

 Very risky because competitors can move in easily

 for example, an entrepreneur who takes the
traditional energy drink, creates a new label and
formula, and markets it towards women.
 Table 4.1
Trends Creating Business Opportunities
 FACTORS TO CONSIDER IN STARTING A
NEW BUSINESS

01 02 03 04
A Business Idea Knowledge or Expertise Market or Demand Start-up costs

05 06 07 08
Capital and Finance Competition Location Staff and Technology
EXAMINATION OF THE FINANCIAL PICTURE
WHEN CREATING NEW VENTURES
01
Upside gain and
downside loss
expectations

Risk vs. reward 02

analysis
ACQUIRING AN ESTABLISHED ENTREPRENEURIAL VENTURE

Few basic steps that can be easily

understood:
•Personal preferences
•Examination of opportunities
•Evaluation of the selected venture
 The business environment
 Profits, sales, and operating ratios
 Assets of the venture

• Key questions to ask

 Why is this business being sold?
 What is the current physical condition of
the business?
 What is the condition of the inventory?
 What is the state of the other assets of the
business?
 How many employees will remain with
the business?
 What type of competition does the
business face?
 What does financial picture of the
business look like?
ADVANTAGE OF ACQUIRING AN ONGOING
VENTURE
 Less fear about successful
 Reduced time and effort
future operations

 A good price
 FRANCHISING: THE HYBRID

Franchising is an
arrangement where
franchisor (one party)
grants or licenses some
rights and authorities to
franchisee (another
party). Franchising is a
well-known marketing
strategy for business
expansion.
 A franchisee (a purchaser of a franchise) generally is
legally independent but economically dependent on the
integrated business system of the franchisor ( the seller of
the franchise).
 HOW FRANCHISING WORKS
Franchisor Provides:
Franchisee Obligations:
The company name that provides drawing power.
Make a financial investment in the
operation. Identifying symbols, logos, designs, and facilities.

Obtain and maintain a standardized Professional management training for each

independent unit’s staff.
inventory and/or equipment package
usually purchased from the franchisor.
Sale of merchandise necessary for the unit’s
Maintain a specified quality of operation, equipment to run the operation, and
the food or materials needed for the final product.
performance.

Follow a franchise fee as well as a Financial assistance, if needed.

percentage of the gross revenues.

Continuing aid and guidance to ensure that
Engage in a continuing business
everything is done in accordance with the
contract.
relationship.
  Training and guidance
 Brand-name appeal
Advantages of  A proven track record
 Financial assistance
Franchising

 Franchise fees Disadvantages

 Franchisor control
 Unfulfilled promises of
of Franchising
franchisor
 Best Franchise
Business
Opportunities in the
Philippines
1. Potato Corner Franchise 6. Aquabest Franchise

2. Siomai King Franchise 7. Turks Franchise

3. Master Siomai Franchise 8. Bayad Center Franchise

4. Zagu Franchise 9. Farron Cafe Franchise

5. Mr. Liempo Franchise 10. Noodle House Franchise

As a form of formative ACTIVITY
assessment for the online
module, we will have an
assessment task that will be
made available today until
11:59 PM of December 5,
2020.

I will provide a file that

contains the instructions and
guide questions. Supply
answers being asked.

Worksheet 4 will be uploaded

either through Messenger
(GC), FB Group, or Google
Classroom.
Thank you!
 RESOURCES
BOOKS/REFERENCES:
Pathways to new ventures of entrepreneurs
Kuratko, Donald F. (2015). Entrepreneurship: An Introduction. Cenage https://study.com/academy/
Learning Asia Pte Ltd. Philippine Edition

Timmons, Jeffry A., Gillin, L. M., Burshtein, S., and Spinelli, Stephen Jr. Starting a business
(2011). New Venture Creation: Entrepreneurship for the 21st Century https://www.litmusbranding.com/blog/indispen
– A Pacific Rim Perspective, 1st Edition. McGraw-Hill Irwin.
sable-factors-to-consider-before-starting-a-
Hisrich, R.D., Peters, M.P., and Shepherd, D. (2013) Entrepreneurship,
business/
McGraw-Hill Irwin, Boston.

Franchising
Kuratko, D. (2013) Entrepreneurship: Theory, Process, and Practice,
9th Edition, Wiley online library https://www.toppr.com/guides/business-
environment/emerging-trends-in-
business/franchising/

Franchising business in the Philippines

https://cashmart.ph/franchising-business-in-
the-philippines/