FUNDAMENTAL OF ENTREPRENUERSHIP

1. Define Entrepreneur and list the SIX (6) qualities of a successful entrepreneur
Entrepreneur is an inventor and the first creator of a product and taking on
financial risks in the hope of profit. The six qualities of a successful entrepreneur
are sociable, good communication skills, interpersonal skills, excellent motivations,
enjoy being around people and good negotiators.

2. State what are the FIVE (5) purpose of a business plan

The five purpose of a business plan are describing business, conveys vision to
potential investors, show business goals, raise and solve the potential problems and
states the amount of capital required to finance venue.

3. Briefly explain the TEN (10) reasons why you need a strong business plan.
Ten reason why we need a strong business plan is to attract investors. Before
investors can decide whether or not to back your business financially, they will need
to know as much as possible about how the business will operate and how their
investment will be spent. Secondly,to see if our business ideas will work. By writing
a business plan and outlining each aspect of your business, you can determine if
your idea is actually viable. Besides, to outline each area of the business. A well-
written plan will provide you with an overview of all aspects of the business. You
will be able to detail the who, what, where, when, and why of your day-to-day
business operations, costs, and projected profitability. Next, to set up milestones. A
well-written plan will provide you with an overview of all aspects of the business.
You will be able to detail the who, what, where, when, and why of your day-to-day
business operations, costs, and projected profitability. In the other hand, to learn
about the market. Researching, analyzing, and writing about the market not only
provides you with an overview for the business plan, but gives you greater insight
into the overall market. Other than that, to secure additional funding or loan. Your
business plan can demonstrate that you have met goals and illustrate the company’s
growth and need for additional funding. In addition, to determine our financial
needs. The process of writing a plan will force you to analyze your company’s
financial picture. Furthermore, to attract top-level people. When you’re hiring
employees, your plan will give talented people an overview of your business. Next, to
monitor our business. A business plan should serve as an ongoing business tool that
you can use to monitor your progress. Last but not least, to devise contingency
plans. While business plans often include some contingency plans, by virtue of
having the document available, you can see how and where you can make such
changes relatively quickly if, and when, necessary.
 4. State the Four(4) elements what the lenders look for in a business plan.
The four elements what the leaders look for in a business plan are proof of
experience, personal credit history, business plan must be clear, structured and
short but it must cover all the elements of business idea and for new and existing
companies, forecast for next two years.

5. In a business plan it should include:

a. Executive Summary
-state name and location
-brief explanation on customer needs and your product and service
-the way the it exceeds customer needs
b. Description of your company
-History of the company
-Vision and Mission statement and how to meet unique customer needs
-How the business intends to grow
c. Overview of market analysis
-Defines your market
-Segments the customers
-Project your market share
-Positions your product and services
-Internal and External market analysis
d. Description of management team

-Organizational Structure

-Management Team

-Working Structure

-Skills Gap
-Personnel Plan
e. Overview of marketing plan
-Your Product and Services
-Your Market Potential
-Overview of your competition
-Market Strategy
f. Human Resources plan
g. Financial planning
-State Eight Elements in this section
The eight elements in this section are important assumptions, key financial indicators, break-even
analysis, projected profit and loss, projected cash flow, projected balance sheet, business rations
and long-term plan.
h. Appendices that boost your credibility
-List the Nine items found in this part
The nine items found in this part is technical data on products or services, details of any patents,
partnership agreement, C.V.’s of key managers, organization charts, diagrams of offices,
warehousing and operational areas, names of accountants, solicitors and banks, market studies and
client testimonials.
5. State SIX (6) reason for business plan to fail.
The sic reason for business plan to fail is lack of expertise or experience, management
mistakes, poor financial control, weak marketing strategy, uncontrolled growth and
unreasonable goals.