Workbook 5. Creating Business Venture

Course Material - MIDTERMS
TEC101 - TECHNOPRENEURSHIP
1
No part of this module maybe ENGR. GABRIELL
reprinted B. JAVIER,
without the written permission MEM
of the College of Engineering,
Course Instructor
Pamantasan ng Cabuyao (University of Cabuyao), City of Cabuyao, Laguna. The content may contain works
which are protected by Copyright under RA 8293. You may be liable to Copyright Infringement for any copying
and/or distribution of the content and the copyright owners have the right to take legal actions against such
infringement.
CREATING BUSINES VENTURE
5
LEARNING OUTCOMES
At the end of this lecture, students should be able to understand and learn the
following concepts:
1. Definition of Business Venture

2. Fundamental Types of Business Venture
3. The Idea Generation Process
4. Business Models
RESOURCES NEEDED
For this lesson, you would need the following resources:
 Links to videos
 Links to websites
 Reference materials, tools, and equipment.
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No part of this module maybe reprinted without the written permission of the College of Engineering,
infringement.
MODULE CONTENTS
Before you start, try answering the following

questions.
Objectives
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1. What was the biggest risk that you have taken in
your personal life or in your life as students?
Pretest
____________________________________________ 3
____________________________________________
____________________________________________
Life Begins at the end
____________________________________________
____________________________________________
5 of Comfort Zone
2. Think about the last company / business you have Understanding

transacted with. What type of business is it? What is 8 Business Ventures
its business model?
_______________________________________________
Idea Generation
_______________________________________________
_______________________________________________
9 Process
_______________________________________________
_______________________________________________ Business Models
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3. If you have the opportunity to put up your own
business, what kind of business will it be and why?
___________________________________________ Summary
___________________________________________ 20
___________________________________________
___________________________________________ References
___________________________________________ 22
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Check your Vocabulary:
Write your simple understanding of the following terms.
1. Risks
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2. Business Venture and Customers

_______________________________________________________________________
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_______________________________________________________________________
3. Idea and Conceptualization

_______________________________________________________________________
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LIFE BEGINS AT THE END OF YOUR COMFORT ZONE
Let’s watch this video: LIFE BEGINS AT THE END OF YOUR COMFORT ZONE
Adopted from TEDx Standford | Jun 19, 2015
Link: https://www.youtube.com/watch?v=cmN4xOGkxGo
Figure 1. Yubing Zhang LinkedIn Profile
The phrase "Life begins at the end of your comfort zone" is a motivational statement that
encourages individuals to step outside of their familiar and comfortable routines and explore new
experiences and challenges. It suggests that personal growth, discovery, and fulfillment lie
beyond the boundaries of what feels safe and familiar.
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Here's a breakdown of the meaning behind the phrase:
1. Comfort Zone: The comfort zone refers to a psychological state in which individuals
feel at ease and experience minimal stress or anxiety. It is characterized by routine,
familiarity, and a sense of security. While being in the comfort zone can provide a sense
of stability, it can also limit personal growth and prevent individuals from reaching their
full potential.
2. Life Begins: The phrase suggests that real living, personal development, and
meaningful experiences happen when individuals push themselves beyond their comfort
zones. It implies that the most exciting and rewarding aspects of life are found outside the
boundaries of what is familiar and comfortable.
3. Stepping Outside: Stepping outside of one's comfort zone means taking risks,
embracing uncertainty, and facing new challenges. It involves trying new things,
pursuing personal goals, and exploring unfamiliar territories. It may involve confronting
fears, breaking old habits, and embracing discomfort in the pursuit of personal growth.
4. Personal Growth and Fulfillment: The phrase suggests that by venturing beyond the
comfort zone, individuals have the opportunity to learn, develop new skills, gain
confidence, and discover their true capabilities. It implies that personal growth, self-
discovery, and fulfillment are often found in the face of challenges and the willingness to
take risks.
In essence, "Life begins at the end of your comfort zone" encourages individuals to step outside
of what is familiar, safe, and predictable. By doing so, they open themselves up to new
opportunities, experiences, and personal growth that can lead to a more fulfilling and meaningful
life.
ZONE OF PROXIMAL DEVELOPMENT
The Zone of Proximal Development (ZPD) is a concept developed by psychologist Lev

Vygotsky to describe the gap between what a learner can accomplish independently and what
they can achieve with guidance and support from a more knowledgeable individual.
The concepts of the Comfort Zone, Fear Zone, Learning Zone, and Growth Zone are often used
to describe different psychological and experiential states that individuals can find themselves in
when facing challenges and pursuing personal development.
Let's explore each zone in more detail:
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1. Comfort Zone: The Comfort Zone is a psychological state where individuals feel at
ease and experience minimal stress or anxiety. It is characterized by routine, familiarity,
and a sense of security. In this zone, people stick to their established patterns, habits, and
activities that they are already comfortable with. While the comfort zone provides a sense
of stability, it can also limit personal growth, as individuals may avoid taking risks or
exploring new opportunities.
Figure 2. The Zone of Proximal Development
2. Fear Zone: The Fear Zone, also known as the Panic Zone or the Anxiety Zone, is the
state of heightened discomfort and anxiety that occurs when individuals step outside their
comfort zones. It is the space where fear of the unknown, failure, or rejection can be
paralyzing. This zone is characterized by a feeling of unease, resistance, and a strong
desire to retreat back to the comfort zone. However, it is important to note that growth
and learning often occur once individuals overcome their fears and push through this
zone.
3. Learning Zone: The Learning Zone is the space just beyond the Fear Zone. It is where
individuals actively engage with new experiences, challenges, and opportunities for
growth. In this zone, individuals embrace discomfort and take calculated risks. They are
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open to learning, acquiring new skills, and expanding their knowledge. The Learning
Zone involves stepping out of the comfort zone and confronting fears while maintaining a
sense of curiosity and a willingness to learn from both successes and failures.
4. Growth Zone: The Growth Zone is the ultimate goal of personal development. It is
the space where individuals experience significant growth, achieve their goals, and
realize their potential. In the Growth Zone, individuals have surpassed their comfort
zones and actively seek out new challenges and opportunities for self-improvement. They
have learned to navigate the Fear Zone and embrace the discomfort and uncertainty that
come with personal growth. In this zone, individuals continue to push their boundaries,
learn from experiences, and develop new skills and perspectives.
It is important to recognize that personal growth and progress are not linear, and individuals may
move back and forth between these zones depending on the challenges they face. The key is to
acknowledge the value of stepping out of the comfort zone, overcoming fear, and embracing the
learning and growth that can occur in the process. By venturing into the Learning Zone and
eventually reaching the Growth Zone, individuals can expand their capabilities, develop
resilience, and experience a more fulfilling and meaningful life.
Question for Reflection:
How can you apply the Zone of Proximal Development in your journey as a student? Would
you think that this concept applies to entrepreneurs?
Understanding Entrepreneurship
Understanding Business Venture
A business venture, also known as a business enterprise or entrepreneurial venture, refers to a

new business or project undertaken by an individual or a group of individuals with the aim of
making a profit. It involves starting a new commercial undertaking or expanding an existing
business into a new area, market, or product/service offering.
Here are some key characteristics and aspects of a business venture:
1. Entrepreneurship: Business ventures are driven by entrepreneurship, which involves

identifying opportunities, taking calculated risks, and being innovative in creating and
delivering value to customers.
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2. Profitability: The primary objective of a business venture is to generate profits and
achieve financial success. Profitability is achieved by providing products or services that
meet customer needs and creating a sustainable revenue stream.
3. Ownership and Control: In a business venture, individuals or a group of individuals

(entrepreneurs) own and control the business. They assume the risks associated with the
venture and make key decisions regarding its direction, strategy, and operations.
4. Investment: Starting or expanding a business venture typically requires financial

investment. Entrepreneurs invest their own capital, seek external funding through sources
like loans or investors, or a combination of both to finance the venture.
5. Risk and Uncertainty: Business ventures involve inherent risks and uncertainties, such
as market fluctuations, competition, regulatory changes, and operational challenges.
Entrepreneurs must be prepared to navigate and mitigate these risks to ensure the success
of their venture.
6. Innovation and Differentiation: Successful business ventures often involve innovation,

whether it's developing new products, introducing unique business models, or applying
technology in novel ways. Differentiation from competitors is crucial for creating a
competitive advantage and attracting customers.
7. Growth and Expansion: Business ventures are typically aimed at achieving growth and
expansion. This may involve scaling operations, entering new markets, diversifying
product/service offerings, or expanding the customer base.
8. Exit Strategy: In some cases, entrepreneurs may have an exit strategy in mind for their
business venture. This could involve selling the business to another entity, merging with
another company, or taking the business public through an initial public offering (IPO).
Overall, a business venture represents an entrepreneurial endeavor undertaken to establish and

grow a business with the objective of generating profits and creating value for customers,
stakeholders, and the entrepreneur themselves.
CASE STUDY: XYZ Tech Solutions - Disrupting the Home Security Market
Introduction:
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XYZ Tech Solutions is a startup company founded by John, an experienced entrepreneur,
aiming to disrupt the home security market. With a background in technology and a
passion for innovation, John identified an opportunity to leverage the latest advancements
in smart home technology to provide affordable and user-friendly security solutions to
homeowners.
Background:
The home security market is dominated by established players offering expensive and
complex systems, limiting access to affordable security solutions for many homeowners.
John recognized the potential to address this gap in the market by developing a scalable
business model that combines cutting-edge technology, ease of use, and competitive
pricing.
Market Research and Analysis:

XYZ Tech Solutions conducted extensive market research to gain insights into customer
needs and preferences. They identified a growing demand for cost-effective, DIY home
security systems that could be easily installed and monitored by homeowners themselves.
They also discovered that customers valued features such as mobile app integration, real-
time notifications, and remote monitoring.
Business Model and Product Development:

With the market research findings in mind, XYZ Tech Solutions developed a business
model centered around a user-friendly, all-in-one smart home security system. The
system includes wireless sensors, a central hub, and a mobile app that allows
homeowners to monitor and control their security system remotely. The product was
designed to be easy to install and integrate seamlessly with existing smart home devices.
Strategic Partnerships and Distribution Channels:

Recognizing the importance of strategic partnerships, XYZ Tech Solutions collaborated
with renowned home security monitoring companies to provide professional monitoring
services as an optional add-on. This partnership helped establish credibility and trust
among customers who preferred professional monitoring.
To reach a wider customer base, XYZ Tech Solutions adopted a multi-channel

distribution strategy. They partnered with online retailers, local home improvement
stores, and also sold directly through their website. This approach allowed them to reach
different customer segments and maximize their market penetration.
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Marketing and Customer Acquisition:
To create awareness and generate customer interest, XYZ Tech Solutions launched
targeted marketing campaigns. They utilized digital advertising, social media platforms,
and influencer partnerships to highlight the benefits of their user-friendly security system.
They also offered a trial period and a money-back guarantee to alleviate any concerns
potential customers might have.
Results and Growth:

XYZ Tech Solutions experienced rapid growth and customer adoption within the first
year of operation. Their disruptive approach to home security resonated with
homeowners looking for affordable and easy-to-use solutions. Positive customer reviews
and word-of-mouth referrals contributed to their growing customer base.
To support the increasing demand, XYZ Tech Solutions expanded its team, including
customer support, product development, and sales personnel. They also continued to
invest in research and development to stay ahead of technological advancements and
evolving customer needs.
Conclusion:
XYZ Tech Solutions successfully disrupted the home security market by providing
affordable and user-friendly smart home security systems. By leveraging market research,
developing strategic partnerships, adopting a multi-channel distribution strategy, and
implementing effective marketing campaigns, they quickly gained traction in the
industry. Their commitment to innovation and customer satisfaction contributed to their
growth and positioned them as a key player in the market.
Questions for Discussion:
These discussion questions can help facilitate a deeper analysis of the case study, encourage
critical thinking, and generate insights into the strategies and success factors of XYZ Tech
Solutions' business venture.
1. What market factors and customer needs did XYZ Tech Solutions identify that led
them to develop their disruptive business model in the home security market?
2. How did XYZ Tech Solutions differentiate themselves from established players in the
home security market, and what advantages did their user-friendly smart home security
system offer to customers?
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3. What role did strategic partnerships play in XYZ Tech Solutions' business model?
How did their collaboration with home security monitoring companies enhance their
offering and customer trust?
4. Discuss the effectiveness of XYZ Tech Solutions' multi-channel distribution strategy.
How did partnering with online retailers, local home improvement stores, and direct sales
through their website contribute to their growth and market penetration?
5. Explore the marketing strategies employed by XYZ Tech Solutions. How did they
create awareness and generate customer interest? What impact did their trial period and
money-back guarantee have on customer acquisition?
6. What were the key factors that contributed to XYZ Tech Solutions' rapid growth and
customer adoption within the first year? How did positive customer reviews and word-of-
mouth referrals play a role?
Fundamental Types of Ventures
Business venture can be classified based on two aspects. First, venture based on who are your
potential clients and the second aspect is based on the type of products your business is offering.
Figure 3. Fundamental Types of Business Venture

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B2B, B2C, and B2G are acronyms used to describe different types of business relationships and
transactions. Here's an explanation of each:
1. B2B (Business-to-Business):
B2B refers to business-to-business transactions or relationships. It involves the exchange
of products, services, or information between two or more businesses. In B2B
interactions, the customer is typically another company or organization rather than
individual consumers. Examples of B2B transactions include a manufacturer selling
products to a retailer, a software company providing services to a corporate client, or a
wholesaler supplying goods to a distributor.
B2B transactions often involve larger quantities, complex supply chains, and longer sales
cycles compared to B2C transactions. They may require negotiations, contracts, and
customized solutions tailored to the specific needs of the business customers.
2. B2C (Business-to-Consumer):
B2C refers to business-to-consumer transactions or relationships. It involves the sale of
products, services, or information directly to individual consumers. In B2C interactions,
the customer is the end-user or consumer who purchases goods or services for personal
use. Examples of B2C transactions include buying clothes from an online retailer, dining
at a restaurant, or booking a hotel room through a travel website.
B2C transactions typically involve smaller quantities, simpler supply chains, and shorter
sales cycles compared to B2B transactions. They often focus on building brand
awareness, attracting and retaining individual customers, and providing a positive
consumer experience.
3. B2G (Business-to-Government):
B2G refers to business-to-government transactions or relationships. It involves businesses
engaging with government entities at various levels, such as federal, state, or local
governments. B2G interactions encompass the provision of products, services, or
information to governmental agencies or organizations.
B2G transactions can take various forms, including supplying goods or services to
government departments, bidding on government contracts, or providing consulting
services to support government initiatives. Examples include a construction company
working on a public infrastructure project, a software vendor providing systems for a
government agency, or a research organization conducting studies on behalf of a
government entity.
B2G relationships often require businesses to navigate specific regulations, compliance
requirements, and procurement processes established by government entities.
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Understanding the distinctions between B2B, B2C, and B2G is essential for businesses to tailor
their strategies, marketing approaches, and customer engagement efforts accordingly. Each type
of transaction involves unique considerations, target audiences, and business dynamics.
Which amongst these types of business venture is the most difficult to manage and why?
CHECK YOUR UNDERSTANDING: SEAT WORK

Instructions:
Read the statements on each and every item and identify if it is TRUE or FALSE.
1. True or False: B2B refers to transactions between businesses, while B2C refers to
transactions between businesses and consumers.
2. True or False: B2B transactions typically involve smaller quantities and simpler supply
chains compared to B2C transactions.
3. True or False: B2C interactions focus on providing products and services directly to
individual consumers.
4. True or False: B2G refers to transactions between businesses and government entities.
5. True or False: B2B transactions often have longer sales cycles and may involve
negotiations and contracts.
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6. True or False: B2C transactions require businesses to navigate specific regulations and
compliance requirements established by government entities.
7. True or False: B2B relationships involve businesses supplying goods or services to
government departments.
8. True or False: B2G transactions can include businesses bidding on government
contracts.
9. True or False: B2C interactions are typically characterized by larger quantities and
complex supply chains.
10. True or False: B2B refers to transactions between businesses and customers.
11. True or False: B2C transactions are primarily focused on selling products and
services to other businesses.
12. True or False: B2B relationships often require businesses to tailor their strategies to
the specific needs of their business customers.
13. True or False: B2G transactions involve businesses engaging with government
entities at various levels.
14. True or False: B2C transactions involve businesses providing goods and services
directly to government agencies.
15. True or False: B2G interactions encompass businesses providing products and
services directly to individual consumers.
Remember to review your answers once you have completed the quiz. Good luck!
Idea Generation Process
The idea generation process is a crucial phase in entrepreneurship and innovation, where
individuals or teams generate and develop new ideas for potential business ventures or projects.
The process typically involves several steps to stimulate creativity and uncover innovative
concepts. Here are four common steps in the idea generation process:
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Figure 4. The Idea Generation Process
1. Problem Identification: The first step in the idea generation process is identifying
problems, challenges, or opportunities that exist in the market or within a specific
domain. This involves conducting market research, analyzing trends, and understanding
customer needs. By identifying gaps or pain points, entrepreneurs can focus their efforts
on finding solutions that address real-world problems.
2. Innovation Techniques: Once the problems or opportunities are identified, the next
step is to generate a wide range of ideas that lead to innovation. Various techniques can
be employed to stimulate creativity and brainstorm potential solutions. Some common
idea generation techniques include brainstorming, mind mapping, SCAMPER
(Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, Reverse), and
analogical thinking. These techniques encourage individuals or teams to think outside the
box and explore diverse perspectives.
3. Evaluation and Selection: After generating a pool of ideas, the next step is to evaluate
and select the most promising ones. This involves assessing the feasibility, market
potential, and alignment with the identified problems or opportunities. Evaluation criteria
may include market demand, competitive landscape, scalability, resource requirements,
and potential risks. Ideas that align with the organization's goals, values, and capabilities
are given preference during the selection process.
4. Idea Refinement and Development: Once a set of promising ideas is selected, the
final step is to refine and develop them further. This involves fleshing out the concepts,
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conducting market research, assessing financial viability, and creating a prototype or
minimum viable product (MVP). Iterative feedback loops are essential in this phase to
test, validate, and refine the ideas based on user feedback and market insights. The goal is
to shape the ideas into concrete business plans or projects that can be further pursued and
implemented.
It's important to note that the idea generation process is not linear, and these steps may overlap or
be revisited multiple times. Additionally, effective idea generation often requires a collaborative
and open-minded approach, leveraging the diverse perspectives and expertise of team members
or stakeholders.
How does the saying “Necessity is the mother of all invention” relates to the Idea Generation
Process?
THE CUSTOMER CONSUMTION CHAIN
The Customer Consumption Chain, developed by McGrath and MacMillan, is a framework that
helps businesses understand and analyze the process through which customers consume products
or services. It provides insights into the different stages and actions customers go through, from
awareness to purchase and post-purchase behavior.
Here are the five stages of the Customer Consumption Chain:
1. Awareness: The first stage involves customers becoming aware of the existence of a
product or service. It could be through various channels such as advertising, word-of-
mouth, social media, or product displays. At this stage, businesses aim to capture the
attention of potential customers and generate interest in their offering.
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Figure 5. Activities in the Customer Consumption Chain
2. Familiarity: Once customers become aware of a product or service, they move to the
familiarity stage. Here, they seek to gather more information and develop a basic
understanding of the offering. They may visit the company's website, read reviews,
compare features, or engage in conversations with sales representatives. The goal for
businesses is to provide clear and relevant information that helps customers make
informed decisions.
3. Consideration: In the consideration stage, customers evaluate and compare different

options available to them. They assess factors such as price, quality, features, and
benefits. This is where businesses need to differentiate themselves and highlight their
unique value proposition. Providing compelling reasons why customers should choose
their product or service becomes critical in this stage.
4. Purchase: The purchase stage marks the point where customers make a buying
decision and complete the transaction. It may involve online or offline purchases,
subscription sign-ups, or contract agreements, depending on the nature of the offering.
Businesses should ensure a seamless and convenient buying experience to facilitate
customer conversions.
5. Post-Purchase Behavior: After the purchase, customers enter the post-purchase stage.
This stage is crucial as it determines customer satisfaction and loyalty. Businesses should
focus on delivering a positive customer experience, providing post-purchase support, and
engaging customers through personalized communication. Happy customers can lead to
repeat purchases, referrals, and positive word-of-mouth, which are vital for business
growth.
The Customer Consumption Chain helps businesses understand the customer journey and
identify opportunities for improvement at each stage. By mapping and analyzing customer
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behavior and needs throughout the chain, businesses can refine their marketing strategies,
enhance customer experiences, and build long-term relationships with their customers.
UNDERSTANDING BUSINESS MODELS
There are several common business models that are widely used by companies across various
industries. These models represent different ways in which businesses create, deliver, and
capture value.
Here are some of the most common business models:
1. Pay as you go: Pay as you go is a pricing model where customers are charged based
on their actual usage or consumption of a product or service. Instead of a fixed monthly
or upfront fee, customers pay for the specific amount they use. This model is commonly
used in utility services like electricity or water, as well as in telecommunications and
cloud computing services.
2. Freemium: Freemium is a business model that offers a basic version of a product or

service for free, while charging customers for premium features, advanced functionality,
or additional services. The goal of the freemium model is to attract a large user base by
providing a valuable free offering and then convert a portion of those users into paying
customers for the enhanced features. Many software applications, mobile apps, and
online platforms employ the freemium model.
3. Billable Hours: Billable hours refer to the hours worked by an individual or a team
that can be charged to clients or customers. This model is often used by professional
service providers, such as lawyers, consultants, accountants, and freelancers. The service
provider tracks the time spent on specific tasks or projects and bills the client based on
the hourly rate multiplied by the number of billable hours.
4. Advertising Based: Advertising-based models rely on generating revenue through

advertising. In this model, a product or service is offered to users at little or no cost, and
the business generates revenue by displaying advertisements to the users. Platforms like
social media networks, search engines, online content providers, and mobile apps often
adopt this model. Advertisers pay to display their ads to the platform's user base, and the
platform earns revenue from those advertising fees.
5. Subscription: A subscription is a business model where customers pay a recurring fee

at regular intervals (monthly, annually) to access a product or service. It often provides
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ongoing value to customers, and they continue to receive the offering as long as their
subscription is active. Examples of subscription-based businesses include streaming
services like Netflix, subscription boxes, and software-as-a-service (SaaS) platforms.
6. Distributor or Reselling: Distributor or reselling refers to a business model where a

company purchases products from manufacturers or wholesalers and sells them to
retailers or end customers. Distributors act as intermediaries between the producers and
the retailers, helping to bridge the gap in the supply chain and ensure that products reach
the intended markets. They often handle tasks such as warehousing, logistics, and sales to
reach a wider customer base.
7. Retailing and Wholesaling: Retailing and wholesaling are two distinct business
models in the distribution and sales process. Retailing involves selling products or
services directly to end customers. Retailers typically operate physical stores or online
platforms and focus on satisfying consumer demand. On the other hand, wholesaling
involves selling products in bulk to retailers or other businesses rather than directly to
consumers. Wholesalers often offer discounted prices to retailers to allow for a profit
margin when they sell to the end customers.
8. Leaseholder: A leaseholder is an individual or entity that holds a lease or rental

agreement for a property or asset. In this context, a lease refers to a contractual agreement
between a property owner (landlord) and the leaseholder (tenant). The leaseholder has the
right to use and occupy the property for a specified period in exchange for rent payments.
The leaseholder may be a business renting commercial space or an individual renting a
residential property.
9. Brokerage: Brokerage refers to a business model where a broker acts as an

intermediary between buyers and sellers, facilitating transactions and earning a
commission or fee for their services. Brokers bring together buyers and sellers, negotiate
deals, and assist in the transaction process. Examples of brokerage businesses include real
estate agencies, stockbrokers, insurance brokers, and freight brokers who facilitate the
movement of goods. They provide expertise, market knowledge, and connections to help
parties find suitable matches and complete transactions.
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SUMMARY
A business venture, also known as a business enterprise or entrepreneurial venture, refers to a

new business or project undertaken by an individual or a group of individuals with the aim of
making a profit. It involves starting a new commercial undertaking or expanding an existing
business into a new area, market, or product/service offering.
Overall, a business venture represents an entrepreneurial endeavor undertaken to establish and
grow a business with the objective of generating profits and creating value for customers,
stakeholders, and the entrepreneur themselves.
Business venture can be classified based on two aspects. First, venture based on who are your
potential clients and the second aspect is based on the type of products your business is offering.
B2B, B2C, and B2G are acronyms used to describe different types of business relationships and
transactions
Understanding the distinctions between B2B, B2C, and B2G is essential for businesses to tailor
their strategies, marketing approaches, and customer engagement efforts accordingly. Each type
of transaction involves unique considerations, target audiences, and business dynamics.
The Customer Consumption Chain helps businesses understand the customer journey and
identify opportunities for improvement at each stage. By mapping and analyzing customer
behavior and needs throughout the chain, businesses can refine their marketing strategies,
enhance customer experiences, and build long-term relationships with their customers.
It's important for entrepreneurs to carefully consider and select a business model that aligns with
their goals, resources, and market dynamics.
KEY TERMS
Business Venture Innovation Advertising Based
B2C Consumption Chain Subscription
B2G Pay as You Go Wholesale / Retail
B2B eCommerce Brokerage
Business Model Billable Hours Lease Holder
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Answer to Seatwork
1. True
2. False
3. True
4. True
5. True
6. False
7. True
8. True
9. False
10. False
11. False
12. True
13. True
14. False
15. False
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REFERENCES
E. Ries, "The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create
Radically Successful Businesses," Crown Business, 2021.
S. Blank and B. Dorf, "The Startup Owner's Manual: The Step-by-Step Guide for Building a
Great Company," K&S Ranch, 2020.
B. Feld and J. Mendelson, "Venture Deals: Be Smarter Than Your Lawyer and Venture
Capitalist," Wiley, 2019.
C. M. Christensen, "The Innovator's Dilemma: When New Technologies Cause Great Firms to
Fail," Harvard Business Review Press, 2007.
G. A. Moore, "Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream
Customers," HarperBusiness, 2007.
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Course Material - MIDTERMS

1. Definition of Business Venture

For this lesson, you would need the following resources:

Before you start, try answering the following

2. Think about the last company / business you have Understanding

Write your simple understanding of the following terms.

2. Business Venture and Customers

3. Idea and Conceptualization

Figure 1. Yubing Zhang LinkedIn Profile

ZONE OF PROXIMAL DEVELOPMENT

The Zone of Proximal Development (ZPD) is a concept developed by psychologist Lev

Let's explore each zone in more detail:

Figure 2. The Zone of Proximal Development

Question for Reflection:

Understanding Business Venture

A business venture, also known as a business enterprise or entrepreneurial venture, refers to a

Here are some key characteristics and aspects of a business venture:

1. Entrepreneurship: Business ventures are driven by entrepreneurship, which involves

3. Ownership and Control: In a business venture, individuals or a group of individuals

4. Investment: Starting or expanding a business venture typically requires financial

6. Innovation and Differentiation: Successful business ventures often involve innovation,

Overall, a business venture represents an entrepreneurial endeavor undertaken to establish and

Market Research and Analysis:

Business Model and Product Development:

Strategic Partnerships and Distribution Channels:

To reach a wider customer base, XYZ Tech Solutions adopted a multi-channel

Results and Growth:

Questions for Discussion:

Fundamental Types of Ventures

Figure 3. Fundamental Types of Business Venture

Question for Reflection:

CHECK YOUR UNDERSTANDING: SEAT WORK

Idea Generation Process

Question for Reflection:

THE CUSTOMER CONSUMTION CHAIN

Here are the five stages of the Customer Consumption Chain:

3. Consideration: In the consideration stage, customers evaluate and compare different

UNDERSTANDING BUSINESS MODELS

Here are some of the most common business models:

2. Freemium: Freemium is a business model that offers a basic version of a product or

4. Advertising Based: Advertising-based models rely on generating revenue through

5. Subscription: A subscription is a business model where customers pay a recurring fee

6. Distributor or Reselling: Distributor or reselling refers to a business model where a

8. Leaseholder: A leaseholder is an individual or entity that holds a lease or rental

9. Brokerage: Brokerage refers to a business model where a broker acts as an

A business venture, also known as a business enterprise or entrepreneurial venture, refers to a

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