MA.

CRISTINE IDICA GRADE 12-ARISTOTLE

Entrepreneurship
Entrepreneurs- Cecilio Kwok Pedro (Unilever, Procter and Gamble, Colgate and Palmolive)
Toty Tan Caktiong( Jollibee)
Henry Sy(SM)
Socorro C. Ramos( National Book Store)
John Gokongwei Jr. ( Robinson, Cebu Pacific)
Anatomy of Entrepreneurs- Knowledge, Passion, Fire
Entrepreneurship- refers to the ability of an individual to determine and come up with the proper combination of the
resources available in his environment and transform this into an output either goods or services, and obtain profit from
this activity. In entrepreneurship the first investment of the entrepreneur is his or her IDEAS. The ideas is the blueprint
of the entrepreneurs on how he is going to make good and services, how to run, and manage his business and how to make
profit out of it.
Entrepreneurs- people who own, operate, and take the risk of a business venture.
Activities Involves in entrepreneurship: spotting opportunities, conceptualizing these opportunities to business ideas,
identifying and using resources in the environment, gain profit out of the activity.
Perks of being an entrepreneur- No boss, do your passion, decide for your destiny, help the community, Millionaire.
Risk of being an entrepreneur- long hours of work, uncertainty of income, high level of stress, family risk, health risk.
Socio-economic benefit- promotes self-help and employment, mobilize capital, provides taxes to the economy, empowers
individual, distribute income, improves quality of life.

Opportunities- are possibilities from existing conditions (Discovery and invention)

Ideas- are the thoughts or concepts that come from creative thinking. Ideas can come from many different sources.
( hobbies and interest, and past experiences)
Tools for business Idea Generation- solve your own problems, solve problems of your friends, search for problems,
structure the problem, business idea, scamper technique, and make connection.
Innovation- is about improving existing processes. At its core SCAMPER is an easy to implement.
Scamper Technique- is an acronym that stands for Substitute, Combine, Adapt, Modify, Put to another use, Eliminateee,
Reverse. (Similar to Design thinking)
Substitute-Find a part of your concept, product, service or process etc. that you could replace with another to see whether
it will result in improvements, such as efficiency gains. This will help you test which alternative works better, like a trial
and error process.
Combine-Most of the time you don't have to come up with something entirely new, but the solution(s) actually already
exists. One idea might not work alone, but you could combine several ideas, processes or products into one more efficient
output.
Adapt-As mentioned above, you probably already have the right solution to your problem, you just don't know it yet.
Sometimes an idea that worked to solve one problem, could also be used to solve a different problem.
Modify-Modify an aspect of your situation or problem, for example by magnifying, i.e. exaggerating, them and see
whether it gives you a new insight or whether it adds any value. This will help you identify which part of your process or
concept is the most significant.
Put to another use- This is very similar to "Adapt", it's about putting an existing idea or concept to another use, l.e. using it
differently than it was originally intended to.
Eliminate- It's about eliminating inefficient processes ('waste') with the goal of streamlining them.
Reverse-Reverse the orientation or direction of a process or product, do things the other way around, completely against
its original purpose. Sometimes when you reverse the way a product is used, it will help you see things from a different
perspective.

Set goal- SMART Goal

Specific- What? Why? How?
Measurable- Goals should establish ways to measure your progress
Attainable- Goal should not be too far out of reach
Realistic- Goals should represent things to which you are willing to commit
Timely- goals should have a time frame for achievement.

Example:
Goal: I will learn more about starting my own business
I will learn more about starting my own catering business through obtaining information from Small Business
Administration and talking with the owners of three local catering business by the end of the month (SMART Goal).

FUNCTIONS OF BUSINESS
In a market economy, an entrepreneur is free to produce and offer to consumers any legal product or service. Knowledge
of business activities will help the entrepreneurs satisfy the customers and make a profit. These activities or functions
includes: Production, Management, Marketing, Finance
Production- The primary reason a business exists in a market economy is to provide products or services to consumers and
to earn a profit. The production function creates or obtains products or services for sale.
Marketing- All businesses in a market economy need to complete marketing activities in order to make their products and
services available to consumer. These activities make up the marketing mix or the P's of marketing, which includes the
following:People, Product, Placement/Distribution, Price, Promotion
MANAGEMENT- It is necessary for all business in a market economy to spend a great deal of time developing,
implementing and evaluating plans and activities. Setting goals, determining how goals can be met, and deciding how to
respond to actions of competitors is the role of management. Management also solves problems, oversees the work of
employees, and evaluates the activities of the business.
Finance- One of the first responsibilities of finance is determining the amount of capital needed for the business and how
the capital will be obtained.

BUSINESS PLAN- Is a written document that describes all the steps necessary for opening and operating a successful
business.
Business Plan
1. Describe what your business will produce, how will you produce it and who will buy your product or service
2. Provides detailed financial information that shows how your business will succeed in earning a profit
3. Explains who will run your and who will supply it with goods
4. Describes plans for future business growth of your business.
5. States how your business will win over customers from competitors and what your business will do to keep customers
Note: Writing a solid business plan is critical because the plan can make or break your business.

PURPOSES OF A BUSINESS PLAN

1. A business plan explains the idea behind your business and spells out how your product or service will be produced and
sold
2. A business plan sets specific objectives and describes how your business expects to achieve them.
3. A business plan describes the backgrounds and experience of the leadership team of the business.

Basic Elements of the business plan- The content of the business plan for a small, home based, single-owner business will
differ from a business plan for a large corporation with offices in many cities. But regardless of the business, all business
plans serve the same basic purposes. They should contain the same three basic components---- introductory materials, the
main body and the appendix (supporting documents).

Preliminaries- Title Page, Table of Contents, Statement of the purpose, Executive summary
Parts of the Main Body- Introduction, Marketing, Financial Management, Operations, Concluding Statement

Introduction-
1. a detailed description of the business and its goals (Short-term and long term)
2. The ownership of the business and the legal. structure
3. The skills and experience you bring to the business
4. The advantages you and your business have over your competitors. The advantages that you may include are:
Performance, Quality, Reliability, Distribution, Price, Promotion, Public image or reputation

Legal Structure/ Type of Ownership

1. Sole Proprietorship
2. Partnership
a. General Partnership
b. Limited Partnership
c. Limited Liability Partnership
3. Corporation
4. Cooperative

Sole Proprietorship is a business with one owner who operates the business on his or her own or employ employees. A
sole proprietor can work as an independent contractor or operate a small business. Sole proprietors own businesses in
many industries. Many home-based businesses are operated by sole proprietors or more persons.
Partnership is a non-incorporated business that is created between two or more people. In a partnership, your financial
resources are combined with those of your business partner(s), and put into the business. You and your partner(s) would
then share in the profits of the business according to any legal agreement you have drawn up.
There are three classification of partnerships:
1) general partnership (partner divide responsibility, liability and profit or loss according to their agreement),
2) limited partnership (with at least one general partner, there are one or more limited partner who have limited liability to
the extent of their investment), and
3) limited liability partnership (all of the partners have limited liability of the business debts; it has no general partners).
A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and
responsibilities that an individual possesses and has the right to enter into contracts, loan and borrow money, sue and be
sued, hire employees, own assets and pay taxes.
A cooperative is owned and controlled by an association of members. It can be set up as a for-profit or as a not-for-profit
organization. This is the least common form of business, but can be appropriate in situations where a group of individuals
or businesses decide to pool their resources and provide access to common needs, such as the delivery of products or
services, the sale of products or services, employment, and more.

Product Management (branding, labeling,packaging)

Pricing (objectives, factors and strategies)
Promotion (strategies)
Locating business
Finance (financial statements)

Product Management-Consumers buy a product because it meets their needs. However, there is much more to a product
than consumers may realize.The many aspects of a product that a business must spend time developing and managing
includes: Branding,Packaging, Labeling, Opositioning
Brand is the name, symbol or design used to identify your product.
Package is the box, container, or wrapper in which the product is placed.
Label is where information about the product is given on the package.

PRICING- The PRICE is the actual amount a customer pays for product or service.
Note: The price must be low enough to encourage customers to buy from you, not from your competitors but high enough
that revenues exceed expenses.
Things to consider in setting PRICE OBJECTIVES

1. Return on Investment (ROI) is the amount earned as a result of the investment and usually expressed as a percentage.
Ex. You invested P5000 in your smoothie business, you want your business to have 15% return then you have to price
your product in a way that you will earn P750, since P5000x.15-=P750.
2. Market Share is another consideration when setting pricing objectives. Market share is a business percentage of the
total sales generated by all companies in the same market. The total market for a product must be known in order for a
market share to be determined. Example: If Jana's community is spending P1,750,000 a year on fast food and Jana's store
sells products amounting of P192,500, their market share will be 11% Amount of Sales/Total Market = Market Share
P192,500/1,750,000 = 11%
(your objective in pricing your product depends on target market share)

Determine a Price for a Product

Demand-Based Pricing - Pricing that is determined by how much customers are willing to pay for the product. This is
determined through survey.
Cost based pricing - is determined by using the whole sale cost of an item as the basis for the price charged You can either
mark up or mark down your price.

Price a Service or an Idea- When setting the price for a service, it is important to consider not only the cost of any items
used in providing the service but also the amount of time and anything that is included with service.
1. Time based Pricing-the price to charge for the services can be determined by the amount of time it takes to complete the
service. A service provided must decide whether there will be a separate charge for the material or materials will be
included.
2. Bundling- services are bundled, or combined under one charge, rather than making the customer pay for each individual
part of the service.

Pricing Strategies
1. Introductory Price
✓ Price Skimming ✓ Market Penetration Pricing
2 Discount Price
✓ Cash discounts (cash basis) ✓Quantity discount (volume) ✓ Trade Discounts (Patrons) ✓Seasonal Discount (out of
season products)

3. Psychological Price
✓Prestige pricing-selling at a high price in order to create a feeling of superior quality and social status. The customer
believe that the higher the price the higher the quality of goods.
✓Odd/even Pricing- customer have this feeling that when price ends with odd number it sounds like cheaper compared to
an even
✓ Price Linings- offering different level of prices for a specific category based on their features and quality.
✓ Promotional Pricing - this is offering lower price for limited period of time. This is temporarily since it will return to
normal when promotion ends.
✓Multiple Unit Pricing- pricing items in multiple (like just bundles) like 100 for 3.

PROMOTION STRATEGIES
Advertising is a form of promotion designed to use TRIMP formula (TV, Radio, Internet, Mobile and Print Media)
Advertising keeps your product in the public's eye by creating a sense of awareness. Advertising should help business
convey a positive image. Once you choose the message, you will need to decide which advertising medium to use. To
choose the medium, you will have to consider cost and effectiveness in reaching your target audience.
Online advertising has become widely used by the business. Online technology lets businesses interact with customers
through online chat rooms, blogs, and newsletters.
Types of Online Advertising
Banner Ad - A graphic image or animation displayed with in a rectangular box across the top or down the side of the web
page
Floating Ad- An ad that moves across the screen or floats above the page content
Wallpaper Ad- An ad that changes the background of the page being viewed
Trick Banner-A banner ad that looks like a dialog box with buttons, often n appearing like an error message or an alert
Pop Ad- A new window that opens in front of the current one, displaying and advertisement.
Paying for Online Advertising
Cost Per Mil (CPM)-the charge is based on the exposure of the message to specific audience. CPM are prices per
thousand viewers reached with the message.
Cost per click (CPC) - the charge based on the number of clicks on the advertisements..
Cost per Action (CPA)- the charge based on the user completing a form for newsletters, or taking some action that will
lead to sale.

Sales Promotions these are promotions that heavily relies on promotional gimmicks (buy one take one, holiday sale,
midnight sales, volume sales, eat all you can.
Direct Selling designed to use person to person selling techniques. This is recommended for technical and expensive
products that require an expert or specialist to explain the product mechanics.
Public Relations is a promotion that generate public awareness through publicities, interviews, press conference, free
product endorsements, sponsorship and etc.

Potential Market- is the part of the population that has shown some level of interest in buying a particular product or
service. It is also called the Total Addressable Market(TAM). Not currently your customer but can be in the future.
Importance of Potential Market
 Potential markets are an important part of a business's future growth
 Ensure the future of your business by identifying new customers
 Think proactively about ways for your business to grow and change
 Show the potential of your business to investors or collaborators
 Increase your revenue
 Create a plan B that will might give changes in the economy or market
Available Market- Prospects who are willing and capable (have sufficient resources) buyer, and have access to a particular
market or service.
Target Market refers to a group of potential customers to whom a company wants to sell its products and services Target
markets are generally categorized by age, location, income, nat lifestyle (Kenton, W.2019),
Penetrated Market is a set of customers or clients who are already using a particular product or service
(www.businessdictionary.com)
Need is a motivating force that compels action for its satisfaction. Needs range from basic survival needs (common to all
human beings) satisfied by necessities, to cultural, intellectual and social needs (varying from place to place and age
group lo age group) satisfied by necessaries (www.businessdictionary.com)
A Market is a place where two parties can gather to facilitate the exchange of goods and services (Kenton, W. & Boyle,
M, 2020)
Existing customers are people who have already purchased your product
Prospects are people who have not yet purchased your product but are considering it.
Target market users are people in your target market who are not currently looking for i solution