– An entrepreneur is comprehensively defined by

Zimmerer & Scarborough (2005) as someone who

“creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and
growth by identifying significant opportunities and
assembling the necessary resources to capitalize on
them” . They are the ones who act on their
business ideas.
– Entrepreneurship on the other hand is not just a simple business
activity but a strategic process of innovation and new product
venture creation. Basically, entrepreneurship is both an art and
science of converting business ideas into marketable products or
services to improve the quality of living.
LESSON 1: DEVELOPING A BUSINESS PLAN (DP)
CONTENT LEARNING COMPETENCIES CODE

Development Recognize a potential market

1. TLE_ICTAN11/1
of Business The learners… 2PC-Ia-1
Plan 1. Identify the market
problem to be solved or the
market need to be met; and
2. Propose solution/s in terms
of product/s and service/s
that will meet the need
using techniques on
seeking, screening, and
seizing opportunities:
LESSON 1: DEVELOPING A BUSINESS PLAN (DP)
CONTENT LEARNING COMPETENCIES CODE
1.2.1 Analyze the market need;
Development 1.2.2 Determine the possible TLE_ICTAN11/1
of Business product/s or service/s that will 2PC-Ia-1
Plan meet the need;
1.2.3 Screen the proposed
solution/s based on
viability, profitability, and
customer requirements; and
1.2.4 Select the best product or
service that will meet the market
need.
Reflect on Frequent Questions:
– How can we open new business in the Philippines?
Aren’t we in crisis?
– Haven’t we discovered everything already? Aren’t
products perfect already?
– Isn’t it too crowded already for a new enterprise?
– How can you survive as a new enterprise?
Answer:
– Really, we don’t know.
– If we go through the process, maybe we will
know.
– More often, the answer is in YOU!
– Opportunity presents itself WHEN YOU ARE
READY.
HOW YOU WILL RECOGNIZE
YOUR POTENTIAL MARKET?
HOW YOU WILL RECOGNIZE
YOUR POTENTIAL MARKET?
Example:
 When there is a typhoon, what do you see?

Flooding Stalled Vehicles Upper Respiratory

Diseases

Fallen Trees &

Destroyed Houses Deaths from
Power Lines
Drowning
What don’t you see?

Umbrellas and
Andanyo Boys Tulak Tirik Boys Raincoats for Sale

New Flood Control More Sale of Construction

Projects Funeraria
Materials
JUNE 10, 2019-MONDAY
WEK 2-SESSION1

ENTREPRENEURSHIP
LESSON 1: DEVELOPING A BUSINESS PLAN (DP)
CONTENT LEARNING COMPETENCIES CODE
1.2.1 Analyze the market need;
Development 1.2.2 Determine the possible TLE_ICTAN11/1
of Business product/s or service/s that will 2PC-Ia-1
Plan meet the need;
1.2.3 Screen the proposed
solution/s based on
viability, profitability, and
customer requirements; and
1.2.4 Select the best product or
service that will meet the market
need.
GROUP ACTIVITY:
1.Identify and analyze 5 market problems in
your community
2.Using techniques on seeking, screening &
seizing opportunities, propose a solution that
will meet the needs of the market.
3.Determine the possible product/s or service/s
that will meet the needs of the market.
3.Rank your 5 proposed solutions for your
business ideas
Group Activities: RUBRICS
Entrepreneurial Mind Frame,
Heart Flame, and Gut Game
The entrepreneurial mind frame allows the
entrepreneur to see things in a very positive and
optimistic light in the midst of crisis or difficult
situations.
The entrepreneurial heart flame, also known as
surging passion, refers to the entrepreneur’s
fulfillment in the act and process of discovery.

The entrepreneurial gut game, also known as

intuition, refers to the ability of the entrepreneur
to sense without using the five senses.
The Entrepreneurial Mindset

OPPORTUNITY
SEEKING

OPPORTUNITY
SCREENING

OPPORTUNITY
SEIZING
Opportunity Seeking

1) Macro Environmental Sources of

Opportunities
2) Industry Sources of Opportunities
3) Micromarket
4) Consumer Preferences, Piques, and
Perceptions
5) Other Sources
Sources of Opportunities
Macro Environmental Sources of Opportunities

1. Socio-cultural Environment
2. Political Environment
3. Economic Environment
4. Ecological Environment
5.Technological Environment
Demographic forces relate to people. This refers
to the study of human populations.

This includes size, density, age, gender,

occupation and other statistics.

Why are people important? Because, on the

whole, their needs is the reason for businesses
to exist.
The Economic forces relate to factors that affect
consumer purchasing power and spending patterns.

For instance, a company should never start exporting

to a country before having examined how much
people will be able to spend. Important criteria
are:GDP real growth rate, GNI, Import Duty rate and
sales tax/ VAT, Unemployment, Inflation, Disposable
personal income, and Spending patterns.
The Socio-Cultural forces link to factors that affect
society’s basic values, preferences and behavior.

The basis for these factors is formed by the fact that

people are part of a society and cultural group that
shape their beliefs and values.

For instance, symbols may carry a negative meaning

in another culture.
Technological forces form a crucial influence in the
Macro Environment. They relate to factors that create
new technologies and thereby create new product and
market opportunities.
A technological force everybody can think of
nowadays is the development of wireless
communication techniques, smartphones, tablets and
so further.
Thus, marketers must watch the technological
environment closely and adapt in order to keep up.
Otherwise, the products will soon be outdated, and the
company will miss new product and market
opportunities.
Ecological, or natural forces in the Macro
Environment are important since they are about the
natural resources which are needed as inputs by
marketers or which are affected by their marketing
activities.
For instance, world, air and water pollution are
headlines every marketer should be aware of. In
other words, you should keep track of the trends in
the ecological environment.
Important trends in the ecological environment are
the growing shortage of raw materials and the care
for renewable resources. In addition, increased
pollution, but also increased intervention of
government in natural resource management is an
issue.
Every business is limited by the political
environment. This involves laws, government
agencies and pressure groups. These influence and
restrict organisations and individuals in a society.
Sources of Opportunities
Industry Sources of Opportunities
 Participants in and industry include:
1. Rivals or competitors in a particular type of business.
True rivals or competitors are those competing for the
same or similar markets.
2. Suppliers of input to rivals as well as suppliers of
machinery and equipment, suppliers of manpower and
expertise, and supplies of merchandise.
3. Consumer market segments being served by rivals or
competitors.
4. Substitute products or services, which customers shift or
turn to.
Sources of Opportunities
Micromarket
 Micromarket refers to the specific target
market segment of a particular enterprise. It
likewise pertains to a clearly defined location
or specific customer group that an enterprise
wishes to serve.
Sources of Opportunities
Consumer Preferences, Piques, and
Perceptions

 Consumer preferences refer to the tastes of

particular groups of people. In contrast, consumer
dislikes refer to the things that irritate customers.
Either way, the entrepreneur can explore
opportunities brought about by consumer
preferences or dislikes.
 There are times when the product is not changed
by the enterprise but what changes is the way
consumers perceive the product.
Sources of Opportunities
Other Sources
 Another potential source of opportunity is the
entrepreneur’s own set of skills or expertise, or
hobby.
 New knowledge as well as new technology can be
the source of highly innovative opportunities.
Opportunity Screening
Once you have generated a number of business
opportunities and ideas, the next step is to select
and screen these. Though there can be many ways
to do this, a good way to proceed is to screen your
ideas based on the following criteria:

1. Personality and Personal Preferences

2. The Product and Customer Screen
1. Personality and Personal Preferences
-Personal Preference
-Education, Skills, and Experience
-Work Experience
-Support from family and friends
2. The Product and Customer Screen

-PRODUCT VIABILTY
-PRODUCT PROFITABILTY
-CUSTOMER REQUIREMENTS
The Concept of Product Viability
When something is “viable,” it is capable of not
only germinating, but growing.
In product development terms, viability means that
a product not only gets purchased, but it performs
well enough to be recommended to others.
Its popularity spreads organically, or virally. You
want a product that both initiates a sale and
generates word of mouth.
Product Profitability
Product profitability, simply
defined, is the difference
between the revenues earned
from, and the total costs
associated with, a product over
a specified period of time.
Profit Accounting Model
• The fundamental accounting equation

– Profit = Revenues – Costs

– Revenue = SP * units sold

– SP = selling price

– Costs = FC + VC(units manufactured)

– FC = fixed cost

– VC = unit variable costs.

• We are assuming that units manufactured equal units sold

Customer Requirements
Characteristics or specifications that should be
present in a product for it to be deemed desirable
by the consumer.
There can be two types of customer requirements:

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.
Output Requirements: These are mostly the tangible
characteristics, features or specifications that a consumer expects to
be fulfilled in the product.
If a consumer is availing a service as a product, then various
service requirements can take the form of output requirements. For
example, if the consumer is hailing 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.
REVIEW:

LET’S REVIEW!

 
REVIEW:

Someone who “creates a new

business in the face of risk
and uncertainty for the
purpose
  of achieving profit
and growth by identifying
significant opportunities
REVIEW:

A strategic process of
innovation and new product
venture creation, both an art
and  science of converting
business ideas into
marketable products or
services to improve the
quality of living.
REVIEW:

This is the total population

that is interested to acquire
the product or services
 
REVIEW:

This is the total population

that the company decided to
Serve or sell the product
 
Entrepreneurial Mind Frame,
Heart Flame, and Gut Game
______________________ allows the
entrepreneur to see things in a very positive and
optimistic light in the midst of crisis or difficult
situations.
Entrepreneurial Mind Frame,
Heart Flame, and Gut Game

___________________also known as intuition,

refers to the ability of the entrepreneur to sense
without using the five senses.
Entrepreneurial Mind Frame,
Heart Flame, and Gut Game

___________________ also known as surging

passion, refers to the entrepreneur’s fulfillment in
the act and process of discovery.
REVIEW:

Give 5 sources of opportunity

  seeking
Industry Sources of Opportunities

 Who are the 4 participants in and outside

the industry?
This includes size, density, age, gender,
occupation and other statistics that relates to
people.
Marketers must watch this closely and adapt in order
to keep up, otherwise, the products will soon be
outdated, and the company will miss new product and
market opportunities.
The Economic forces relate to factors that affect
consumer purchasing power and spending patterns,
employment rate, tax rate, personal income.
For instance, world, air and
water pollution are
headlines every marketer
should be aware of.
This involves laws, government agencies and
pressure groups.
Factors that affect society’s basic values, preferences
and behavior., beliefs.
Give the 2 criterias to screen your business
ideas
Give sample of Personality and Personal
Preferences
Product and Customer Screen

A product not only gets purchased, but it performs

well enough to be recommended to others.

Its popularity spreads organically, or virally. You

want a product that both initiates a sale and
generates word of mouth.
Product and Customer Screen

______________________
simply defined, is the
difference between the
revenues earned from, and the
total costs associated with, a
product over a specified period
of time.
Product and Customer Screen

___________Characteristics or specifications that

should be present in a product for it to be deemed
desirable by the consumer.
Sources of Opportunities

 _____________________refer to the tastes of

particular groups of people.
The 12 Rs
1. Relevance
of Opportunity Screening
2. Resonance
3. Reinforcement
4. Revenues
5. Responsiveness
6. Reach
7. Range
8. Revolutionary Impact
9. Returns
10.Relative Ease of Implementation
11.Resources
12.Risks
The 12 Rs of Opportunity Screening
1. Relevance to vision, mission, and objectives of the entrepreneur.
The opportunity must be aligned with what you have as your
personal vision, mission, and objectives for the enterprise you
want to set up.
2. Resonance to values. Other than vision, mission, and objectives,
the opportunity must match the values and desired virtues that
you have or wish to impart.
3. Reinforcement of Entrepreneurial Interests. How does the
opportunity resonate with the entrepreneur’s personal interests,
talents, and skills?
4. Revenues. In any entrepreneurial endeavor, it is important to
determine the sales potential of the products or services you want
to offer. Is there a big enough market out there to grab and
nurture for growth?
The 12 Rs of Opportunity
5.
Screening
Responsiveness to customer needs and wants. If the
opportunity that you want to pursue addresses the unfulfilled or
underserved needs and wants of customers, then you have a
better chance of succeeding.
6. Reach. Opportunities that have good chances of expanding
through branches, distributorships, dealerships, or franchise
outlets in order to attain rapid growth are better opportunities.
7. Range. The opportunity can potentially lead to a wide range of
possible product or service offerings, thus, tapping many market
segments of the industry.
8. Revolutionary Impact. If you think that the opportunity will most
likely be the “next big thing” or even a game-changer that will
revolutionize the industry, then there is a big potential for the
chosen opportunity.
The 12 Rs of Opportunity
Screening
9. Returns. It is a fact that products with low costs of production and
operations but are sold at higher prices will definitely yield the
highest returns on investments. Returns can also be intangible;
meaning, they come in the form of high profile recognition or
image projection.
10. Relative Ease of Implementation. Will the opportunity be
relatively easy to implement for the entrepreneur or will there be
a lot of obstacles and competency gaps to overcome?
11. Resources Required. Opportunities requiring fewer resources
from the entrepreneur may be more favored than those requiring
more resources.
12. Risks. In an entrepreneurial endeavor, there will always be risks.
However, some opportunities carry more risks than others, such
as those with high technological, market, financial, and people
risks.
The 12 Rs of Opportunity
Screening
VANCERELE
The opportunity must be
aligned with what you have as
your personal vision, mission,
and objectives for the
enterprise you want to set up.
CENANRESO
the opportunity must match
the values and desired virtues
that you have or wish to
impart.
CHREA
Opportunities that have good
chances of expanding through
branches, distributorships,
dealerships, or franchise
outlets in order to attain rapid
growth are better
opportunities.
NUESVERE
it is important to determine
the sales potential of the
products or services you want
to offer.
NGEAR
possible product or service
offerings, thus, tapping many
market segments of the
industry.
FORCEREINMENT
How does the opportunity
resonate with the
entrepreneur’s personal
interests, talents, and skills?
PONRESSIVENESS
If the opportunity that you
want to pursue addresses the
unfulfilled or underserved
needs and wants of
customers, then you have a
better chance of succeeding.
RYNATIOVORELU PACTMI
If you think that the opportunity will
most likely be the “next big thing” or
even a game-changer
Opportunity Screening Matrix
Opportunity Seizing
OPPORTUNITY SEIZING

– This stage, the entrepreneur must be able to

determine the following:
critical success factors that enable other players
in the same industry to succeed,
be vigilant about those factors that cause other
business to fail.
The question for the entrepreneur
in Opportunity Seizing is…

“Will I be able to manage, to my

advantage, the critical success factors and
avoid the critical failure factors?”
OPPORTUNITY SEIZING

Positioning of the Business Enterprise in the

Marketplace:
Crafting a Positioning Statement
Conceptualizing the product or Service Offering
Designing, prototyping, and Testing the Product
Implementing, Organizing and Financing
What is a positioning statement?

A positioning statement is a brief description of a product or

service and target market, and how the product or service
fills a particular need of the target market. It's meant to be
used as an internal tool to align marketing efforts with the
brand and value proposition.

Unlike a mission statement or vision statement, a

positioning statement is not a public-facing tagline. At its
core, it's a statement of how you want your brand to be
perceived.
 Each business is unique, and it's alright if your
statement doesn't fit the template exactly, but be
sure to include the main points.
1.A description of the target market.
2.A description of the target market needs.
3.How your business will meet their needs.
4.What differentiates your product or service from
the competition.
5.Why consumers in your target market should
believe your brand's claims.
Positioning Statement Examples
Coca-Cola Positioning Amazon Positioning
Statement: Statement:
For individuals looking for high- For consumers who want to
quality beverages, Coca-Cola offers purchase a wide range of
a wide range of the most refreshing products online with quick
options -- each creates a positive delivery, Amazon provides a
experience for customers when one-stop online shopping site.
they enjoy a Coca-Cola brand Amazon sets itself apart from
drink. Unlike other beverage other online retailers with its
options, Coca-Cola products inspire customer obsession, passion for
happiness and make a positive innovation, and commitment to
difference in customers' lives, and operational excellence.
the brand is intensely focused on
the needs of consumers and
customers.
Nike Positioning Statement: Apple Positioning
For athletes in need of high- Statement:
quality, fashionable athletic For individuals who want the
wear, Nike provides best personal computer or
customers with top- mobile device, Apple leads
performing sports apparel and the technology industry with
shoes made of the highest the most innovative products.
quality materials. Its products Apple emphasizes
are the most advanced in the technological research and
athletic apparel industry advancement and takes an
because of Nike's commitment innovative approach to
to innovation and investment business best practices -- it
in the latest technologies. considers the impact our
products and processes have
on its customers and the
planet.
McDonald's Positioning Statement:
For individuals looking for a quick service restaurant with
an exceptional customer experience, McDonald's is a leader
in the fast food industry, with its friendly service and
consistency across thousands of convenient locations.
McDonald's' dedication to improving operations and
customer satisfaction sets it apart from other fast food
restaurants
Positioning Statement Template

For [your target market] who [target market

need], [your brand name] provides [main
benefit that differentiates your offering from
competitors] because [reason why target
market should believe your differentiation
statement.]
Group Activities:

 
1.Create your product/service Positioning
Statement.
2.Present your output in the class
3.Score will be based on RUBRICS
Value Proposition
vs.
Positioning Statement
Value Proposition
Value propositions describe the functional and emotional
benefits of companies and their brands.

Functional benefits are linked to specific product features,

while emotional benefits refer to positive feelings that
customers experience when using a company's products and
services.
For example, the functional benefit of a gardening tool could
be the efficient removal of lawn weeds, but the emotional
benefit could be its ease of use by people with knee ailments.

Value propositions are not necessarily about offering the

cheapest products. They are about convincing customers that
they are getting value for their money.
Positioning statements are more
focused, and they're created after you've
developed your business' value
proposition.

It identifies only the primary customer

benefits and points of competitive
differentiation.
Product/Service Conceptualization
Options or Directions in Coming up with a
Product/Service Concept
1. The first is to create a concept similar to the winning
products in the marketplace and ride with the obvious
market trends
2. The second is to find a market niche that has not been
filled by the competitors.
What Is Niche Marketing? ... Instead of marketing to everyone who
could benefit from a product or service, this strategy focuses
exclusively on one group—a niche market—or demographic of
potential customers who would most benefit from theofferings.
A niche market could stand apart from others because of:
Geographic area.
Options or Directions in Coming up with a
Product/Service Concept

3. The third is to conceptualize a product in a positioning

category where the participants are rather weak.

4. The fourth is to conceptualize a product that would change

the way customers think, behave, and buy, thus making
existing products “obsolete” and “old-fashioned.”
Designing, Prototyping, and
Testing the Product
 Designing means that the entrepreneur must render
the concept and translate it into its very physical
and very real dimensions (measurement).
 This entails building a prototype of the product
that will be ready for actual testing by the
entrepreneur and then, later on, subject to testing
by potential customers through focus group
discussions (FGD), surveys, product
demonstration sessions, and the like concept to
users before investing time and money into
development.
Benefits of Prototypes
It is much cheaper to change a product early in
the development process than to make change
after you develop your product.

Prototyping allow you to gather feedback from

users while you are still planning and designing
your product or services.
Remember always:

_Start with the CUSTOMER NEEDS

– Be sure there would be a large number who
share the same aspiration / frustration
– The customer cannot be completely satisfied.
– “I can’t get no satisfaction”
Remember always:

– There is no perfect product

– Today’s winners can be tomorrow’s losers
– Today – It’s Henry Sy or John Gokongwei
– Tomorrow – it’s Hans Sy / Tessie Coson / Lance
or Robina Gokongwei
– In the distant future – it’s gonna be
YOU ARE THE INNOVATION!
You and your SKILLS
You and your IMAGINATION

“IMAGINATION IS MORE IMPORTANT THAN KNOWLEDGE”

–Albert Einstein
You and your NETWORK
social networking stats
Description / Focus No. of Reg’d Users
General. 500 M
Also for businesses
and celebrities.
General. Popular in 245 M
US, Canada, Europe

“Microblogging“ in 140 190 M

characters or less

General. Popular in 115 M

South East Asian
Countries
Business Networking 80 M
You and your PURPOSE
You and TECHNOLOGY
YOU

Welcome to your world!

You and your
VISION

“I believe that the nation should dedicate itself to committing

the goal that before the decade is out, of a man landing on the
moon and returning him safely to earth.”
-John F. Kennedy
May 25, 1961
“I have a
dream.”

-Martin Luther King

You and your MINDSET
– Nothing is impossible
– I can do it
– I have what it takes

–HINDI PWEDE
ANG HINDI
PWEDE.
You and your ENTERPRISE
– “If you build they will come.”
You and
your
PASSION
It is doing what you love
doing, even when it hurts.
Live an
INTERESTING LIFE!

It’s a wonderful world!

You are the universe’s greatest miracle.
Group Activities:
From the chosen identified market problem in your area or community,
proposed a solution using the techniques on the seeking, screening, seizing
business opportunities.
1.2.1 Analyze the market need;
1.2.2 Determine the possible product/s or service/s that will meet the need;

1.2.3 Screen the proposed solution/s based on

viability, profitability, and customer requirements; and
1.2.4 Select the best product or service that will meet the market need.
1.What did you learn from the discussion?

2.What do you think is the importance of studying the

techniques in developing a business plan?

3.How can you apply this techniques on your chosen track?

4.From the three entrepreneurial mindset in developing a
business plan, what do you think is the most effective
technique(s)?Why?