ABM 009 - REVIEWER

MODULE 1: Business Opportunity: Identify Possible Market, Customer and Target Market

 What Is an Entrepreneur? Someone who creates and runs a business is called an entrepreneur.
 Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking
several risks in the corporate world and taking risks to create a business or develop a new product best defines
entrepreneurship.
 Why Be an Entrepreneur? The biggest reward of becoming an entrepreneur is the personal satisfaction that comes from
having the freedom to make your own business decisions and then act on them.
 • Making Your Own Rules. When you own a business, you get to be your own boss.
 • Doing Work You Enjoy. Since the majority of most people’s lives is spent working, why not spend that time doing
something you enjoy?
 • Creating Greater Wealth. There’s no limit to what an entrepreneur can do.
 • Helping Your Community. Being an entrepreneur lets you make your community and world a better place.
 The primary purpose of identifying possible markets, customers, and target markets in the context of a business
opportunity is to minimize risks and enhance success.
 As an entrepreneur, in understanding the target market it is crucial for an entrepreneur when identifying a business
opportunity because it limits the growth of the business.

Risks of Being an Entrepreneur

• Potential Business Failure. Being fully responsible means the success or failure of your business rests on you.
• Unexpected Obstacles. Problems can happen that you don’t expect.
• Financial Insecurity. Many new businesses don’t make much money in the beginning, so you may not always be able to
pay yourself.
• Long Hours and Hard Work. It’s not unusual for entrepreneurs to work a lot of extra hours to make their businesses
successful. This is especially true during the initial start-up process.

Cornell Notes
Characteristics of an Entrepreneur
Self-assessment—evaluating your strengths and weaknesses— is an important part of becoming an entrepreneur.
An aptitude is a natural ability to do a particular type of work or activity well.
An attitude is a way of viewing or thinking about something that affects how you feel about it. Entrepreneurs tend to be
people with positive attitudes.
OVERVIEW OF DIFFERENT DATA COLLECTION TECHNIQUES
-To gather diverse and reliable information is the primary purpose of using various data collection techniques in
business opportunity analysis
 Interview- data collection technique involves gathering information by directly interacting with individuals through
structured or unstructured conversations, this can be done through personal interviews, can be done through phone calls
and questions are clear and encourage open-ended responses, involves obtaining information directly from individuals
through one-on-one conversations.
 Questionnaires and Surveys - Responses can be interpreted with quantitative methods by assigning numerical values.
 Observations- It allows the study of the dynamics of a situation, including the frequencies and other behaviors written in
the observation material. Observing consumer behavior firsthand is the role do observations play in identifying possible
markets for a business.
 Focus Groups - This is a group interview with individuals with commonalities
The purpose of conducting focus groups in the process of identifying a target is to collect opinions and insights from a
diverse group.
 Documents and Records - It can be an inexpensive way to gather information but may provide incomplete data.
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MODULE 2: Analysis on Choosing Feasible Product in terms of Market, Operations and Financials

 A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a
want or need. Products include more than just tangible objects, such as cars, clothing, or mobile phones. Products also
include services, events, persons, places, organizations, and ideas or a mixture of these. A product is a combination of
goods and services.
 Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially
intangible and do not result in the ownership of anything. Examples include banking, hotel, airline travel, retail, wireless
communication, and home-repair services
 Goods are tangible, as in these have a physical presence and they can be touched, while services are intangible in nature.
Products are a key element in the overall market offering.
 A company’s market offering often includes both tangible goods and services. The market offer may consist of a pure
tangible good, such as soap, toothpaste, or salt; no services accompany the product. At the other extreme are pure
services, for which the market offer consists primarily of a service. Examples include a doctor’s exam and financial
services.

TYPES OF CONSUMER PRODUCTS

 Convenience - Frequent purchase, little or minimal effort effort in comparison of brands, low customer involvement
 Shopping- Less frequent purchase, much effort in comparison of brands
 Specialty - Strong brand preference and loyalty, unique and specific customer needs, little comparison of brands
 Unsought - Little product awareness and knowledge or little interest

INDUSTRIAL PRODUCT

 INSTALLATIONS- •These are products which generally have long life, expensive, and they INSTALLATIONS form part of the
major capital equipment of an industrial firm. •Examples are buildings, generators, and elevators.
 ACCESSORY EQUIPMENT -•These are products that are used as aids in the production process. They have shorter usable
life than installations. •Examples are hand tools and lift trucks in factories, fax machines, and office desk
 RAW MATERIALS-•These are unprocessed goods that will become part of another product. •Can be classified as farm
products which are grown by farmers like tomatoes, eggplant, and coconut. It can also be classified as natural products
which occur by nature like lumber, gold, and oil
 COMPONENT PARTS AND MATERIALS -•These are processed industrial goods that will still be used and become actual
part of the finished product. •Example is a paper which can still be processed and used to make magazines.
 SUPPLIES -•These are items that are used as aids in the operating process but do not become part of the finished product.
•Examples are paper clips and fasteners, lubricants and cleaning supplies.
 SERVICES -•These are inexpensive items that assist in the operations. •Examples are maintenance and security services
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MODULE 4: : Demand, Supply and Market Acceptability of Proposed Product

MARKETING MIX

 Product -can be an good, service or a combination of these, determining the features, design, and benefits of a product to
meet the needs of the target market. Outlines the unique features and benefits of a product.
 Price -Marketing strategies to attract customers, involves deciding on the specific prices for products or services.
 Place -Location or distribution channels, the distribution channels and logistics to make the product available
Factors to consider in choosing a strategic location
Compatibility with the community
Local laws and regulations
Police and fire protection
Population trends
Transportation
Competition
 Promotion -Strategies to communicate your product to the market, involves communication with the target audience and
creating awareness about the product, responsible for creating awareness, generating interest, and influencing customer
perception. Advertising, public relations, and personal selling creates brand awareness and communication.
Understanding the target audience is crucial when developing the "Promotion" because it creates effective promotional
messages and strategies.

Market offerings -Some combination of products, services, information, or experiences offered to a market to satisfy a need or
want.

Market Demand - Demand is an economic principle that describes a consumer’s desire and willingness to pay a price for a specific
good or service.

Market acceptance -is a condition in which your good satisfies the needs of your target market to continue or increase its
production.

Market Segmentation -The market consists of many types of consumers, products, and needs. The process of dividing a market
into distinct groups of buyers with different needs, characteristics, or behaviors.

Market targeting- involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. A
company should target segments in which it can profitably generate the greatest customer value and sustain it over time

Market Positioning- is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in
the minds of target consumers.

Marketing budget- identify all the marketing activities and the respective costs that you will be incurring for such activity.

SWOT ANALYSIS

 Strengths and Weaknesses are internal to the organization, or to the person

Strengths assesses internal positive factors that contribute to the success of a business, while Weaknesses assesses
internal negative factors that contribute to the success of a business.
 Opportunities and Threats are external or things that are outside of the organization or person’s control.
Opportunities assesses external positive factors that contribute to the success of a business, while Threats assesses
external negative factors that contribute to the success of a business.
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MODULE 5: Conclusions and Necessary Revisions of Proposed Product

 DATA PRESENTATION- is defined as the process of using various graphical formats to visually represent the relationship
between two or more data sets so that an informed decision can be made based on them.
 DATA PRESENTATION forms an integral part of all academic studies, commercial, industrial and marketing activities as well
as professional practices.
 DATA PRESENTATION the process of organizing data into logical, sequential and meaningful categories and classifications
to make them amenable to study and interpretation.
HERE ARE THE WAYS TO PRESENT DATA:
1. Textual - The data are presented in the form of texts, phrases or paragraphs. The statements with numerals or
numbers that serve as supplements to tabular presentation.
2. Tabular - It is known as the systematic arrangement of related idea in which classes of numerical facts or data are
given each row and their subclasses are given each a column in order to present the relationships of the sets or
numerical facts or data in a definite, compact and understandable form. The table should be so constructed that it
enables the reader to comprehend the data presented without referring to the text.
3. Graphical - a chart representing the quantitative variations or changes of variables in pictorial or diagrammatic form
and referred to the way in presenting data in form of charts. The types of graphs that can be used are: 1. Bar graphs 2.
Linear graphs 3. Pie graphs 4. Pictograms
4. Image or Pictorial – Image can be considered as another form of data since it can also be processed. Depending on the
imagery it can be used either as raw data or processed data
 DATA ANALYSIS is the process of systematically applying statistical and/or logical techniques to describe and illustrate,
condense and recap, and evaluate data. Data analysis helps in the interpretation of data and help take a decision or
answer the research question.
 DATA INTERPRETATION refers to the implementation of processes through which data is reviewed for the purpose of
arriving at an informed conclusion. It refers to the most critical part of a research report.
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Writing and Revising a Business Plan

 WHAT IS PLANNING? Planning as a basic management function involving formulation of one or more detailed plans to
achieve optimum balance of needs or demands with the available resources. Planning is an essential and indispensable
task in any business. Planning is also a repetitive and sometimes tedious task that never ends.
Types of planning
a) Strategic Plan - a document used to communicate with the organization the organizations goals, the actions needed to
achieve those goals and all of the other critical elements developed during the planning exercise.
b) Marketing Plan- a strategic roadmap that businesses use to organize, execute, and track their marketing strategy over a
given time period.
c) Operating Plan- a strategic document that outlines all the planning related to daily operations and processes required
for running a successful business. It is a section of the business plan that includes information about the process that take
place in the business. It provides details on day-to-day business operations.
 Machineries and Equipment- a group of tangible asset or devices with moving parts that are used to perform specific jobs.
What component of a marketing plan is being highlighted
 Waste disposal
 Production process- action of making or manufacturing from components or raw materials, or the process of being so
manufactured. What component of operating plan is being highlighted
 Product specification- To provide a detailed description of the product or service. It is the essential definition of what the
product is required to provide.
d) Financial Plan- a comprehensive picture of your current finances, your financial goals and any strategies you've set to
achieve those goals.

COMPONENTS OF THE COMPANY DESCRIPTION

 Business owners and its members
 Products and services
 S.W.O.T Analysis
 Objectives

Organizational Structure and Charts- can be written under Staffing and Operations

Product/ Service Development -also called new product management -- is a series of steps that includes the conceptualization,
design, development and marketing of newly created or newly rebranded goods or services. Product development includes a
product's entire journey -- from the initial idea to after its market release.

Income Sources - something that provides a regular supply of money, such as employment, investments, a pension

Profile of Competitors- Competitor profiling is a strategic process of analyzing and understanding your competitors' strengths,
weaknesses, opportunities, and threats. It helps you identify their marketing and branding strategies, target audiences, value
propositions, and competitive advantages.

Funding Requirements- is defined as the cost that is identified in the cost baseline

Executive Summary- summary provides a comprehensive yet concise outline of the business plan. It usually contains a brief
statement of the problem or proposal covered in the major document(s), background information, concise analysis
and main conclusions. It is an abstract or brief of everything in your business plan, bundled up in a tight and neat package. It is
written last.
Business Summary- Business Summary provides limited to professional information.
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Raw materials and utilities- materials or substances used in the primary production or manufacturing of goods. What component
of operating plan is being highlighted

TYPE S OF BUSINESS ORGANIZATION

 Sole Proprietorship- A sole proprietorship is easy to form and gives you complete control of your business. You're
automatically considered to be a sole proprietorship if you do business activities but don't register as any other kind of
business also an owner has an unlimited liability.
 Partnership - Partnerships are the simplest structure for two or more people to own a business together. There are two
common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP) partners/owners has an
unlimited liability.
 Corporation- Corporations offer the strongest protection to its owners from personal liability, but the cost to form a
corporation is higher than other structures. Corporations also require more extensive record-keeping, operational
processes, and reporting and artificial in being. The life of a corporation is perpetual.

TACTICS VS. STRATEGY

 TACTICS- are the individual steps and actions that will get you there. More concrete and are often oriented toward
smaller steps and shorter timeframes along the way. They involve best practices, specific plans, resources, etc.
 Tactics are the properly organized actions that help to achieve a certain end.
 STRATEGY- strategy is the action plan that takes you where you want to go and that pertains to a longer period of time.

VMGO

 VISION- defines your long-term plans. It dictates who you want to be or what you want to be in the future. This statement
identifies your future goals and values and considered as the company’s North Star. Vision statement defines your long-
term plans.
 MISSION- is a concise explanation of the organization's reason for existence. It describes the organization's purpose and
its overall intention. The mission statement supports the vision and serves to communicate purpose and direction to
employees, customers, vendors and other stakeholders. Mission Statement describes the organization's purpose and its
overall intention.
 GOALS- is an achievable outcome that is generally broad and longer term
 OBJECTIVES- objective is shorter term and defines measurable actions to achieve an overall goal.

BRAINSTORMING- is a group problem-solving method that involves the spontaneous contribution of creative ideas and solutions.

PLANNING- It is a process that involves making and evaluating each set of interrelated decisions. Planning process begins with
information gathering.

SYNTHESIZING- you combine two or more things to create something more complex.

STRATEGIC PLANNING-involves outlining an organization's purpose, goals and the methods that will be used to accomplish those
goals.