Entrepreneurship 1.

WEALTH CONVERSION PRINCIPLE

- profit is a requisite for a business. Three elements to create profit: cash,
Week 1 inventories and receivables.
 Idea, cash, inventories, receivables, adding value
INTRODUCTION TO ENTREPRENEURSHIP 2. 3Ss REQUISITES TO PROSPERITY
 Entrepreneurship – process of discovering new ways of combining resources.  Squad – converts cash to inventories, a team which includes his
 INNOPRENEURSHIP: Entrepreneurship + Innovation choice of business partners
 Entrepreneur – make things happen  Spread – converts inventories to receivables, product sold are priced
higher than the cost
 Innovator – make new things happen
 Speed – converts receivables back to cash create system to manage
An entrepreneur is an owner of a business who invests his resources to bring an account receivables effectively
idea to life, setting the direction that transforms that idea into reality, thus
providing and gaining value that balances effort, purpose, and profit. 3. 3Cs KEY FACTORS TO SUCCESS
 Commitment – strong drive to achieve goals and objectives through
5 COMPONENTS OF AN ENTREPRENEUR focus and pro-active follow-through.
1. Owner who invests resources – entails risk taking, has reasonable risk  Coordination – organization of different people to attain efficiency,
appetite not just any risk but calculated risk taking effectiveness or impact.
2. Brings Idea To Life – idea may not come from the entrepreneur, turning an  Competency – combination of ability, attitude and behavior.
idea into revenue maximization 
3. Setting Direction – entails getting quality information and making choices
Week 2
from this information, mindful of heuristics as well as biases in decision
making. CORE COMPETENCIES IN ENTREPRENEURSHIP
4. Making Things Happen – entails the need to ensure all interdependent
elements are in harmony to attain defined goals.  4 GATE MODEL TO PROSPERITY
5. Adding Value - financial understanding that the reward of entrepreneurship  House of prosperity
needs to be much higher than putting cash such as preferred shares with - offers financial independence, personal freedom and fulfillment of other
guaranteed dividend. desires of entrepreneurs
- represents goals and symbols of business and personal success
Innovator – person who introduces either a new process or product model that
becomes commercially successful. GATE 1: PREPARATION (Owners & Stockholders: Profit and Dividends)

PRINCIPLES IN ENTREPRENEURSHIP
 - Entrepreneurs need Intelligence Quotient in order to learn and  Mindset
understand what it takes to make a business (Commitment to have an innovation mindset)
o About beliefs
GATE 2: MARKETING (Customers: Quality and Good Price)  Market
- concerns on clarity of Mindset, Market and Message (Coordinate choice and penetration of the target market)
- Entrepreneurs need reasonable Creativity Quotient in order to make a o Set of buyers that an entrepreneur focuses attention to.
business relevant and unique.  Message
(Competency related to customer-focused communication expressed
GATE 3: EXECUTION (Employees: High Pay and Work Life Harmony) in forms of a positioning or message)
o Brand positioning that will be communicated to persuade the
- Entrepreneurs need to get things done for the business through other
target market to buy.
people and this requires Emotional Quotient.
GATE 3: EXECUTION
GATE 4: SELF-LEADERSHIP (Self: Fulfillment)
 Machinery
- Entrepreneur must have high Adversity Quotient in order to stand up
(Commitment to create an effective organization)
each time failure or hurdles are experienced.
o an organizational structure that can deliver the value planned.
How the 12Ms help the entrepreneur attain the House of Prosperity?  Methods
(Coordinate processes needed to routinize operations)
GATE 1: PREPARATION o systems and processes that allow the entrepreneur information
and control.
 Money (Commitment to maximize return on investment)
 Management Skills
- Cash component that creates cycle of wealth conversion and prosperity
(Competency related to initiatives and resource management and
 Model ( Coordinate the interdependency of a business model)
influencing people skills)
- Business model or the big picture plan to generate sales revenue, profit,
o ability to carry out the plans through people, rewards and
cash flow, growth and how to scale up.
leadership.
 Mentors ( Competency related to sense making and the assessment
that can be provided or guided by mentors)
- Experienced advisers who can add value to the entrepreneur.

GATE 4: SELF-LEADERSHIP
GATE 2: MARKETING
  Moving Forward 6. ADAPTABILITY – adjusting to external changes while initiating internal
(Commitment to keep iterating toward objectives and goals) changes to attain objectives.
o Having the grit to continue business. 7. GRIT – persistency to attain long-term goals despite adversity.
 Mission
4 COMPETENCIES OF AN INNOVATOR
(Coordinate the establishment and fulfillment of a company’s
mission) 1. CREATIVITY – forming a mental image or new idea about the future.
o Purpose or reason why the business exists beyond making profit. 2. CRITICAL THINKING – offering unique ways to solve defined problems.
 Mastery 3. COLLABORATION – developing relationships with the right partners to attain
(Competency related to adaptability and grit resulting to mastery of objectives.
strategy and change as well customer understanding and self- 4. COMMUNICATION – engaging constituents to make them understand and
transformation) accept your message.
o Building capabilities, knowing the nuts and bolts of the business.
Week 3
4 CLUSTER CAPACITY REQUIREMENTS
DEVELOPMENT OF A BUSINESS PLAN: Opportunity Seeking
 INTELLIGENCE QUOTIENT – preparation ---capacity to think and reason
 CREATIVITY QUOTIENT – marketing ---capacity to innovate MAJOR PARTS OF A BUSINESS PLAN
 EMOTIONAL QUOTIENT – execution ---capacity to sense and empathize
 ADVERSITY QUOTIENT – self-leadership ---capacity to recover and make  Introduction
progress.  Executive Summary
 Environmental Analysis
7 COMPENTENCIES OF AN ENTREPRENEUR  Business Description
 Organizational Plan and Production Plan
1. RISK APPETITE – sees rewards for taking on opportunities that have potential
 Operational Plan and Marketing Plan
positive consequences.
 Financial Plan
2. SENSEMAKING – scanning the environment in order to connect and take
actions on potential future outcomes.
3. COSTUMER-FOCUS – choosing, initiating and sustaining relationships with
customers
4. INITIATIVE – proactive in taking prompt actions to attain objectives.
5. INFLUENCE – use personal branding and interpersonal styles to gain buy-in
customers.