Topic: How to Start a Small Business GOAL SETTING
Subject: Entrepreneurship Sets clear and specific short term objectives
Teacher: Ma. Angelica C. Obregon Sets clear long term goals.
____________________________________________ INFORMATION SEEKING
2006 Global Entrepreneurship Monitor Personally seeks information on clients, suppliers, and
Philippines is 2nd in 42 countries with most individuals competitors
owning a business Seeks experts for business or technical advice
4 of 10 Filipinos are entrepreneurs Uses contacts or networks to obtain information
54% motivated by necessity, SYSTEMATIC PLANNING AND MONITORING
only 37% by opportunity Develops logical, step by step plans to reach goals
71% lacking in novelty → Innovation, Originality, Looks into alternatives and weighs them
Newness, Freshness, Uniqueness Monitors progress and shifts to alternative strategies
Why do Businesses Fail? when necessary to achieve goals
Lack of vision and purpose PERSUASION and NETWORKING
Over dependence on specific individuals in the business Employs deliberate strategies to influence or persuade
Poor market segmentation others
Competition Uses business and personal contacts to accomplish
Lack of experience objectives
Insufficient capital (seed money) SELF-CONFIDENCE
Poor location Believes in self
Poor inventory management Expresses confidence in own ability to complete a
Over-investment in fixed assets difficult task or meet a challenge
Poor credit arrangement ________________________________________________
Personal use of business funds Topic: MASTERY OF THE OPPORTUNITIES
Unexpected growth (External assessment: Opportunities and Challenges)
MASTERY OF SELF (Internal assessment:
Knowing your Strengths and Weaknesses) BUSINESS IDEA
There are REWARDS… There are RISKS…then DO YOU Examples of business ideas
HAVE WHAT IT TAKES TO BE A SUCCESSFUL Sari-sari store
ENTREPRENEUR? School supplies
Meat processing
10 Personal Entrepreneurial Competencies (PECs) Catering services
ACHIEVEMEN 1. Opportunity Seeking Research services
T Cluster 2. Persistence Massaging and reflexology services
3. Commitment to Work Day care center
4. Risk Taking Messengerial service
5. Demand for Quality & Efficiency
PLANNING 1. Goal Setting Sources Business Ideas
Cluster 2. Information Seeking Unsatisfied needs and wants in your community
3. Systematic Planning and Control Hobbies
POWER 1. Persuasion and Networking Talents
Cluster 2. Self-confidence Work experiences
OPPORTUNITY SEEKING Entry Strategies
Sees and acts on new biz opportunities START-UP
Seizes unusual opportunities to obtain financing, BUYING AN EXISTING BUSINESS
equipment, land, workspace, assistance, etc. FRANCHISING
Takes repeated or different actions to overcome an FAMILY BUSINESS
obstacle
Makes personal sacrifice or expends extraordinary Long-listing of business ideas
efforts to complete a job What skills do you have?
Sticks with judgment in the face of opposition or early (I am good at doing the following…)
lack of success What are your interests?
COMMITMENT TO WORK (I enjoy doing the following…)
Accepts full responsibility for problems in completing a What are your experiences? (I have work or
job for customers educational experience of the following)
Pitches in with workers or their place to get the job Do you have business network?
done. Expresses a concern for satisfying a customer (I know the following people, friends and relatives who can
RISK TAKING help me…)
Takes what he or she perceives to be moderate risks. What are the businesses that I can make?
States a preference for situations that involve moderate
risks. Types of Business
DEMAND FOR QUALITY and EFFICIENCY Retail business
Always strives to raise standards Wholesale business
Aims for excellence Franchising and other business options
Strives to do things better, faster, cheaper Manufacturing business
Service business 6. Try innovations. Many people have taken things for
Agriculture, forestry and mining granted. Can you modify an existing product into
something new and innovative? Is there a new way of
Business idea to Business Opportunity doing an old thing? How about thinking of new
Not all business ideas will sell product features?
Assess the environment for opportunities and see if the 7. Consider the use of technologies to start a business
business is worth pushing through enterprise. There are "matured" technologies
developed and being promoted by the Department of
Innovate! Differentiate! Science and Technology which can be adopted by
Innovation – modifying a product for an investors.
existing/expanded market. There are other things which can be done to explore
Example: Jollibee hamburger format came from the US business opportunities. The key is to be keen and attentive to
McDo. Jollibee is more successful here than McDo because the environment, sensitive to the needs of the market and
it modified the format to cater to the Pinoy market. most importantly, creative.
The next step is to shorten the your list of choices
S.C.A.M.P.E.R through a screening process.
Substitute – replace one or several components of the Screening is done primarily so you can focus on the
product business that will be suitable to your situation.
(ex. From “pure beef/pork” to “beef/pork and saba peel 1. Arbitrarily, cull out impossible ideas.
mix”) 2. PERSONAL LEVEL SCREENING
Combine – merge one or several elements of the 3. FIRM-LEVEL SCREENING
product
Amplify – enlarge or make the product more THE SCREENING PROCESS
sophisticated (hamburger mix with cheese and catsup PERSONAL LEVEL SCREENING - With this method,
added ) you apply the screening process to yourself as a
Minimize – make the product more simple business proponent.
Put to other use – use the product for a different FIRM LEVEL SCREENING - This method uses
purpose (as filling and as ulam) generally accepted business criteria in determining the
Eliminate – delete (use of preservative) feasibility of a proposed idea.
Rearrange – revise the order of the elements contained
in one product Sources of information
Identifying business ideas is a matter of keeping one's eyes 1. Competitors or people who are in similar business
open to opportunities that exist. 2. Raw materials suppliers
3. Potential customers
IDENTIFYING BUSINESS OPPORTUNITIES 4. Informants such as government, manager of large
Some guides: companies who know about the market in general.
Personal preferences. 5. Business and trade press media
Consider import substitution opportunities.
Explore trends in the export market. Still undecided?
Exploit local underutilized materials in abundance. Is it to choose between the priority business ideas? Get
Assess the market. more advice
Try innovations. Is it that you are not sure you are really suited to start
Consider the use of technologies to start a business such a business? Go back to PEC. Perhaps you are more
enterprise. suited to be employed. Choose what is better for you.
1. Personal preferences. Think of what lucrative business Is it that you are not just happy with the priority
activity you can engage in given your background, business ideas? Have a break. In a week or more,
skills and/or and interests. start looking for other business ideas.
2. Consider import substitution opportunities. Identify
those goods which the Philippines imports from other
countries. Which of these foreign goods can you
produce locally? If you can manufacture a competitive
product that can equal, if not surpass the imported
brands in terms of quality and price, then you may just
have a gold mine in your hand.
3. Explore trends in the export market. Philippine
handmade products are greatly appreciated abroad for
their craftsmanship. You may consider developing
novel handicraft items that can make it big overseas.
4. Exploit local underutilized materials in abundance.
Look around. What raw materials can you get hold of
easily, cheaply and are in abundance? What can you
do with them? Are they saleable? Do a little
brainstorming. Put their creative minds to work.
5. Assess the market. Is there a need for a particular
product or service that is currently not being met or is
only being partially being filed?
