ENTREPRENEURSHIP REVIEWER

Week 1

ENTREPRENEURIAL PROCESS - is a step by step procedure in establishing any type of

business that an entrepreneur has to undergo

PROCESSES:

OPPORTUNITY SPOTTING AND ASSESSMENT

-the beginning and the most difficult part
-consumers are the reliable source of information in line with different opportunities

SOURCES OF OPPORTUNITIES
Major
● Conflicts
● New trends
● Developments
● Challenges
● Processes
Minor
● Retailers
● Manufacturers
● Technical
● personnel
● Wholesalers

AN ENTREPRENEUR SHOULD CAREFULLY ASSESS THE OPPORTUNITY BROUGHT BY:

-estimation of opportunity length

-threats
-calculation of real and perceived value
-capitalization required
-profitability

ENTREPRENEURS SHOULD ASSESS IF THE OPPORTUNITY IS ALIGNED WITH THEIR

PERSONAL GOALS AND ATTRIBUTES

DEVELOPING A BUSINESS PLAN

-entrepreneurs should accomplish a business plan only after they have spotted and assessed
the opportunities of the market
DETERMINING THE CAPITAL NEEDED

-it is necessary to calculate and compare the assets needed to set up the company with the
current resources of the entrepreneur running the business:

RUNNING THE BUSINESS

-this includes the logistics, marketing and sales, human resources, financing and execution of
plans

HARVESTING

-the stage in which the entrepreneur decides on the business' future growth/development or
demise

METHODS OF GENERATING IDEAS:

FOCUSED GROUP DISCUSSION

-a moderator handles an open free-flowing, and in-depth discussion with a group of people

BRAINSTORMING

-activity that allows participants to share creative ideas using the following rules:

● No destructive criticism or judgement is allowed

● Wilder ideas are accepted
● More ideas are preferred
● Improvement of others' ideas is allowed

BRAINWRITING OR INTERNET BRAINSTORMING:

- just like brainstorming but in writing or online

- the results of brainwriting usually take longer

PROBLEM INVENTORY ANALYSIS:

-method is similar to fgd except that the participants are already given an inventory of product of
service problems
Week 2

Entrepreneurs are innovative opportunity seekers

This is what separates entrepreneurs from ordinary businessmen.

Qualities of an entrepreneur:

Entrepreneurial mindset - allows the entrepreneur to see things in a very positive and
optimistic life amidst crises or difficult situations.

Entrepreneurial mind frame - allows the entrepreneur to see things in a very positive and
optimistic light amidst crises or difficult situations.

Heart flame - EQ; which is often manifested in the entrepreneur’s efforts to nurture relationships
with customers, employees, and suppliers.

Entrepreneurial gut game - also known as intuition.

Opportunity - anything that provides you a chance to change your circumstances the better,

Opportunity Seeking - the first step and the most difficult process.

1. Consumer needs and wants.

2. Trends
3. Problems in the environment.
4. Talents, hobbies, skills, and expertise.
Week 3

Opportunity Screening
-process of cautiously selecting the best opportunity.

Selection of Opportunity:
● Internal-the main objective that the business will accomplish
● External-this will address the compelling needs of the target market

**Risk Appetite-refers to the entrepreneur's tolerance of business risk

Time
-must be considered by the entrepreneur in screening opportunity
-should only be devoted to worthwhile opportunities.

Opportunity Screening Matrix

-aims to assist the entrepreneur to concretize the evidence that the chosen.
opportunity/ies is worth well pursuing.
-acts as an opportunity rubric.

THE 12 Rs OF OPPORTUNITY SCREENING:

➢ RELEVANCE - Opportunity's relevance to the vision, mission, and objectives of the
entrepreneur.
➢ RESONANCE - Resonance to values. Other than vision, mission, and objectives, the
opportunity must match the values and desired virtues that you wish to impart.
➢ REINFORCEMENT OF ENTREPRENEURIAL INTERESTS - Asks the question: How
does the opportunity resonate with the entrepreneur's personal interests, talents, and
skills?
➢ REVENUES - Determine the sales potential of the products or services you want to offer
➢ RESPONSIVENESS - To the customer's needs and wants.
➢ REACH - Opportunities that have good chances of expanding through branches,
distributorships, dealerships, or franchise outlets in order to attain rapid growth are better
opportunities.
➢ RANGE - Opportunity can potentially lead to a wide range of possible product or service
offerings, thus, tapping many market segments of the industry.
➢ REVOLUTIONARY IMPACT - If you think that the opportunity will be the "next big thing"
or a game-changer that will revolutionize the industry, then there is a big potential for the
chosen opportunity.
 ➢ RETURNS - Products with low costs of production and operations but sold at higher
prices will definitely yield the highest returns on investment.
➢ RELATIVE EASE OF IMPLEMENTATION - Easy to implement. Asks the question: will
there be a lot of obstacles to overcome?
➢ RISKS - In any entrepreneurial endeavor, there will always be risks, however, some
opportunities carry more risks than others.
➢ RESOURCES REQUIRED - fewer resources required the better.

Week 4

Opportunity Seizing
-act of taking advantage of an opportunity or chance that is available in present time.
-last step in opportunity spotting and assessment which involves refining and developing
of the opportunity.
-”pushing through” with the chosen opportunity.

4 STAGES IN OPPORTUNITY SEIZING:

1. Ideal Stage-In this stage the entrepreneur determines what are the feasible
products and services that will perfectly suit the opportunity through:
A. Market evaluation
B. Assessment of the value of the new products/services
C. Elimination of unappealing products/services
2. Concept Stage
-The developed idea will undergo a consumer acceptance test
-This includes getting the initial reactions of the primary target market and the
distribution channel.
3. Product Development Stag-The entrepreneur leverages on the information
generated from the prospective customers via the concept stage.
A. Determine actual reactions from prospective customers
B. Conduct consumer panel
4. Test Marketing Stage-This stage validates the work done from the first three
stages to measure success in the commercialization of the product or service.

Innovation
-process of positively improving an existing product or service.
-key for economic growth.
-SPECIFIC TOOL of entrepreneurs
-SPECIFIC INSTRUMENT of entrepreneurship
3 TYPES OF INNOVATIONS:

1. Breakthrough Innovation
-May also include inventions, occur infrequently as these establish the platform
on which future innovations in an area are developed.
-Must be protected by a patent, a trade secret, or a copyright.
-Examples: Internet, Computer, or Airplane

2. Technological Innovation
-Occur more frequently than breakthrough innovation.
-Are technological advancements of an existing product or service. These
innovations need to be protected too.
-Examples: Wireless fidelity or Wi-fi, laptop and jet airplane

3. Ordinary Innovation
-Occur ordinarily as the name implies.
-Are commonly originating from market analysis and technology pull instead of
technology push.
-This means that the market has a strong influence on the implementation of an
innovation.
-Examples: Unlimited Internet plans of telecommunication companies, a wireless
mouse, and airbus for economical travelers.

Week 5

● An entrepreneur is affected by his personal aspects, abilities and skills.

Levels of Risk and Return Matrix

- Having high return with low risk is the best solution in business.
- The undesirable part is low return with high risk and it is the worst solution for any
business.

12 R’s of Opportunity Screening (Morato,2016)

Note: Items 1-10 have more advantage to business if your proposed PRODUCT OR SERVICE
has these qualities. Items 11 and 12 should be lessened because having more risk and more
resources required will lessen the viability, profitability and potentiality of business success.

Important Concepts:
a. Profitability
- The state or condition of yielding a financial profit or gain.
- It is often measured by price to earnings ratio”.

b. Viability
- refers to a situation in which a business is surviving.

c. Consumer Requirements
● According to Ramos' blog, viability, profitability and customers requirements are
very important to the success of the entrepreneur.
● “These days, the customer is king.” They are much more informed, much more
assertive, much more discerning, and their tastes and demands change like the
seasons.

In screening the profitability of a business, an entrepreneur should be knowledgeable with 4

financial statements:

a. Income statement
- a financial statement that shows you the company's income and expenditures.
- It also shows whether a company is making profit or loss for a given period.
- The income statement, along with balance sheet and cash flow statement, helps
you understand the financial health of your business.

b. Statement in changes in Equity

- Note: Equity is also called capital
- The statement explains the changes in a company's share capital, accumulated
reserves and retained earnings over the reporting period

c. Balance Sheet
- The equation shows that all the assets of the enterprise equals all liabilities and
equity. They should always be balanced or equal to each other.
 a. Assets - are all the investments in the enterprise like cash, account
receivables, inventories, land building and equipment
b. Liabilities - are the enterprise’s bank debts, accounts payable lending
investors including debt to suppliers if the enterprise a merchandising
business. The balance sheet accounting equation is described below.
c. Equity - is also called capital or the amount invested by the entrepreneur
to start his business

d. Cash Flow Statement

- cash flow statement the different activities from operation, investment and
financing and how it affects either increase or decrease in cash of the enterprise
- A cash flow statement provides data regarding all cash inflows a company
receives from its ongoing operations and external investment sources.

Consumer Requirements
- According to Morato (Morato, 2016). “Consumer preferences refer to the tastier of
particular groups of people”. Some examples are the clothes people wear the food they
eat the music they listen to and the movies they watch”.
- “The consumer’s age, culture, and status affect their preferences (Morato, 2016) A new
normal culture being created by the Covid 19 pandemic for quarantine in many areas in
the world which limits people to face interactions and mostly staying home have made
people increase their purchases online.
- Different delivery modes and services immersed to satisfy the demands of the
customers. These changes made entrepreneurs innovate to satisfy growing needs and
demands.

Week 6
Market segment decision
- It is a decision on product or services considering the market group or segment.
- It is important that there is a demand for the product or services to be created that will
meet a certain segment
At its core, market segmentation is the practice of dividing your target market into approachable
groups.

Market segmentation creates subsets of a market based on demographics, needs, priorities,

common interests, and other psychographic or behavioral criteria used to better understand the
target audience.

Selection of the best product or service that will meet the market need:
a. Product mix decisions
- Product varieties for a target market to ensure market need is solved.
- There can be changes with the design, color, texture etc. but with the same content to
create varieties to choose from.
b. Product specifications
 - Some customers especially in the industry need exact specification and other detail for
the product.
- This involves the measurements required by the customer related to size, shape,
materials or composition and including its description.
c. Positioning and communication decisions
- It is how you position your products to your customers.
- You align your product to the minds of your customers creating an image that fits their
needs.

❖ Market positioning refers to the process of establishing the image or identity of a brand
or product so that consumers perceive it in a certain way.

❖ In retailing, products are called merchandise.

❖ In manufacturing, products are called finished goods which came purchased raw
materials.

The satisfactions aspects of the customer can be as follows:

1. Physiological satisfactions
- These are needs for survival like “need for sleep, food air and reproduction”

2. Economic satisfactions
- Customers want to have a guaranteed good value for their money.
- It can also relate to the price and quality of the product.

3. Social satisfactions
- These are related with how the customer deals with other people or society with its
approval.
- A product will be best for these people if it will be recommended by friends

4. Psychological satisfactions
- It includes feelings and emotions to the customer.

● “A value proposition is a promise of value to be delivered. It’s the primary reason a

prospect should buy from you
● “Competition is the rivalry between companies selling similar products and services with
the goal of achieving revenue, profit, and market share growth (Carnrite. 2016).
● Products created may have similarity with other competitors and entrepreneurs should
be well aware that they are not alone in the business.
 ● Competitors can be with the directly similar with the product being offered and can be a
threat to the business.
● Another type can be a substitute product that can be used in replacement with your
offered product.
● The entrepreneur should know that without a customer or market to patronize the
product can be a threat to the business.
● The best product should be marketable and can compete with the similar products and
its substitutes.

Week 7 entrepreneurship

Marketing strategies
● It is a broad plan for achieving marketing objectives
● Is well-articulated and enable one to focus on marketing activities to achieve the
organizational goal

Definitions of marketing strategy

"Marketing strategy is the
marketing logic by which
business unit expects to
achieve its marketing
objectives" - Phillip Kotler
"Marketing strategy indicates
the specific markets towards
which activities are to be
targeted and the types of
competitive advantage to be
exploited" - Dibb and Sikim
"Choosing market targets and
a strong market position
based on differentiating
capabilities to create a robust
and sustainable value
proposition to customers and
networks of critical
relationships" - Dibb and
Sikim

The Roles of the Marketing Matrix

● The old axiom defines marketing as the process of "getting the right product in front of
the right people at the right time and for the right piece."
● Marketing constitutes of the 4 p's in the case of products - product, price, place, and
promotion

Importance of Marketing Mix

 1. It helps in a clean mix creation
● The products should be compatible with the promotions.
● All the P's are intrinsically linked to each other.
● Whenever you are considering adding a new feature or changing existing things,
you have to look at the overall picture

2. The marketing mix helps in new product development

● The pricing, place, and promotions might be different for such a product.
● It can be classified as a new product and hands while designing the marketing
mix, the company can come up with good ideas for NPD as well

3. Marketing mix helps increase the product portfolio

● Whenever you want to increase the product depth or product line and lengths,
you have to make minor changes to the product
● As a result, by altering the marketing mix and certain features within it, you can
end up with an enlarged product portfolio.

4. It is a guide to improve a business

● Place was an important P and the service marketing mix.
● It can improve the place of their business thereby bringing in more business.

5. It helps in differentiation
● When you analyze the marketing mix of competitors, there are many different
ways that you can differentiate yourself from the competitor.
● All of this can be improved upon by giving you a better marketing mix and
therefore a competitive advantage in the market.

6. Finally, it helps you in being dynamic

● A company that is well prepared is also prepared when disaster strikes. During a
recession or during a poor business environment, a company should be ready
to respond.
● At such times the company needs to be dynamic in nature

Week 8

Business Opportunity
● Is defined as a package business investment allowing the buyer to begin a certain
business.
● Technically, all franchises are business opportunities, but not all business opportunities
are franchises.
● Unlike a franchise, however, the business opportunity seller typically exercises no control
over the buyer,s business operations.
 ● In most business opportunity programs, there's no continuing relationship between the
seller and the buyer after the sale is made.
● The franchise is a type of business opportunity, but it is not reciprocal.
● Many venture opportunities do not imply the continuing relationship between the seller
and the buyer upon the sale franchises do require buyers to perform their business
operations the way the seller indicates.

Business Classifications

1. Franchising - The best choice for intrapreneurs who do not like experimenting.
2. Distributing and dealing - A distributor agrees to sell products and/or services another
company makes or provides. A dealer is pretty much the same as a distributor but this
person focuses more on the product they are selling.
3. Network Marketing - A network marketer is a person who strives to recruit other
marketers in order to create a network of distributors.
4. Licensing - Is when you get a license to use a brand name on your products.

Guidelines to follow on your road to Success

● Be an enthusiast
● Be completely in the know about the product or service that you are selling
● Research the market before opting for any business opportunity
● Contact other and tree preneur is who have bought the same product from the same
seller
● Check if there is some training or seminar you can attend

What is the 7 p's marketing mix

● Is commonly used in the business world
● Is the core element of the business that is designed to achieve the marketing goals

1. Product
2. Place
3. Price
4. Promotion
5. People
6. Packaging
7. Positioning

Product
● Product is anything that can offer in the market to get customer accent and may enable
to satisfy customer needs and wants
Place
● Place means the distribution of the product

Price
● There are two perspective to define price
● There are two types of new product pricing strategy (market penetration pricing i.e. The
initial low-priced to get or cover large market share; market skimming prices i.e. To get or
receive a high customer return from the customer by charging an initial high price of the
product) is available in the market and their marketing objectives are also different

Promotion
● The combinations of advertising, sales promotion, personal selling, direct marketing,
online marketing, digital marketing, and publicity that is used to inform the customer
about a particular product, service, brand even any organization or any idea to get or
receive customer concentration about the company offering

People
● The workforce who is responsible to design and implement each and every strategy and
policy for the purpose of achieving the organizational goals
● Manpower is the key to any service organization, without their cooperation no business
can go far away from its existing position

Packaging
● The outer appearance of the product (the package) is the first thing a potential customer
will see, so it can be a great marketing tool for the product

Positioning
● The place that the brand of pupils in the minds of the customers and how it is
distinguished from the products of the competitors
● Differentiation is how a company's product is unique by, being the first, least expensive,
or some other distinguishing factor
● Positioning is something (a perception) that happens in the minds of the target market
whereas differentiation is something that marketers do ), whether through product
design, pricing, or promotional activity