All about entrepreneurship and business

1. Arrange the scrambled letters
1. ppoortutniise
2. ssetnerrpie
3. eegnisk
4.etkarm

2. Arrange the scrambled letters
6. ointnniova
7. seiidnutsr
8. kritne
9. ssunbesi

3. ObjectiveS
 A. Propose solution/s in terms of product/s and service/s
that will meet the need using techniques on screening
and seizing opportunities (CS_EP11/12ENTREP-0a-2)
 B. Screen the proposed solution/s based on viability,
profitability and customer requirements
(CS_EP11/12ENTREP-0a-5)
 C. Select the best product or service that will meet the
market need. (CS_EP11/12ENTREP-0d-6)

5. Screened proposed solution based on
1. Viability – achievable; feasible
2. Profitability – returns/sales
3. Customer requirement – satisfy your customer
A. Propose solution/s in terms of product/s and service/s that will meet
the need using techniques on screening and seizing opportunities
B. Screen the proposed solution/s based on viability, profitability and
customer requirements
C. Select the best product or service that will meet the market need.

7. Viability
 the ability to survive is ultimately linked to
financial performance and position. ... it is
returning a profit that is sufficient to provide
returns to business owner while also meeting
its commitments to business creditors.

8. Strategic questions in Product’s viability
Is the idea practical?
What obstacles lie ahead?
Will it need support services of some
kind to ensure customer satisfaction?

9. Viability
Consider:
1. Market potential & prospects
2. Availability & appropriateness of
technology
3. Project investment & detailed cost
estimates
4. Financial forecast & determination of
financial feasibility

12. Estimating Market Shares & Sales
 Quantify the market potential in a systematic way.
-define the market coverage (serve)
-country, continent
-Define the total population
-determine what share of the targeted market segment
he or she wants to carve out. “educated guess”
Sales Forecast = Estimated Sales Volume X Estimated
Price

14. Technology Assessment & Operations Viability
4 target customer expectations
1. Quantities demanded
2. Quality Specifications demanded
3. Delivery expectations
4. Price expectations – evaluated by the customers

15. PROFITABILITY

16. 3 investments needed to be funded:
1. Pre-operating Cost
- cost related to preparation for the launch of business.
-pre-feasibility study
-IN DEPTH feasibility study
-market research
-product development
-organizational development
-initial promotional cost

17. Investment needed to be funded
2. Product/Service Facilities
Investments
- Long term investments for
the actual business
establishments.

18. Ex: Product/Service Facilities Investment
 BUILDINGS
 LAND
 MACHINERY
 EQUIPMENTS
 COMPUTERS
 SOFTWARE
 FURNITURE
 VEHICLES

19. Investment needed to be funded
3. Working Capital Investment
 composed cash, accounts receivable, inventories
(raw materials, work in process & finished goods)
 enough cash to cover accommodated customers and operating
expenses
 Salaries, wages and benefits
 Rent and leases expenses
 Utilities
 Transportation
 Fees and licenses
 Commissions
 Office supplies

20. Financial Forecasts & Determination of
Financial Feasibility
 refers to the monetary transactions that the business
expected to engage in.
 Financial Statement
1. Income Statement
2. Balance Sheets
3. Cash Flow statement
4. Funds Flow statement

21. 1. Income statement- measures an enterprise’s
performance in terms of revenue & expenses
over a certain period.
 REVENUES-EXPENSES = INCOME OR PROFIT (LOSS)

24. Customer Requirement
Characteristics or specifications that
should be present in a product for it to
be deemed desirable by the consumer.

25. There can be two types of customer
requirements:
1. Service Requirement
2. Output Requirement

26. Service Requirements:
 Intangible aspects of purchasing a product that a
customer expects to be fulfilled.
 It consists of elements like on-time delivery,
service with a smile, easy-payment etc.
 It encompasses all aspects of how a customer
expects to be treated while purchasing a product
and how smooth his buying process goes.


27. Output Requirements:
 Are tangible characteristics, features or
specifications that a consumer expects to be fulfilled
in the product.
For example, if the consumer is requesting a metro cab,
then on-time arrival becomes an output requirement.
For other products such as gadgets, the product
specifications like the loudness and clarity of a pair of
speakers becomes its output requirements.

28. Opportunity Seizing -
 Final stage, entrepreneur has the idea as to
where he will locate his business and how he will
market the product/service.
 Will I be able to manage the critical success or
failures?
 Capitalize, apply