Definition, Purpose, and Market Organizing the data

Needs Identification Reflect the process

KANO Technique
The Business Plan A business plan is a Attractive Quality attributes provide
written description of the business you plan to satisfaction when achieved fully, but do not
establish in the future. cause dissatisfaction when not fulfilled. These
A business plan can be written before or during are attributes that are not normally expected,
the first few years of the for example, a thermometer on a package of
enterprise. milk showing the temperature of the milk.
This is to guide the entrepreneur on which One-Dimensional Quality A quality element
strategies would be most beneficial for the that is nice to have but can lead to
enterprise to take. dissatisfaction if not present. This applies, for
example, to how easily users can use a
Why prepare a business plan? The business product. In fact, if the software works properly
plan is the blueprint of your proposed and is easy to use, user satisfaction will
business. increase.
Must-Be Quality These are the expectations
Why prepare a business plan? of customers that are never given serious
To test the feasibility of your business idea consideration. Customers tend to be
To give your new business the best chance of dissatisfied when performed poorly while they
success become neutral when done well. Kano referred
To secure funding to them as must-be due to the fact that they
To make business planning more are not only the basic needs to be considered
effective but also the price involved when penetrating
To attract investors the market. Examples include greeting
customers in a call center and providing a
Composing a business plan is tedious, clean room in a hotel, all termed as basic
however it's basic if you want to have an needs.
effective business that will endure the startup Indifferent Quality A quality element that does
stage. not affect customer satisfaction, whether
present or absent. This includes, for example,
Three Factors of a Good Business Plan cases where the application developer
1.It's realistic changes design specifications that are not
2.It's specific important to the user.
3. It's followed through Reverse Quality These attributes refer to a
high degree of achievement resulting in
A realistic business plan accounts for the dissatisfaction and to the fact that not all
feasibility of implementation. If the business customers are alike. For example, some
plan is not practical or too good to be true, customers prefer high-tech products, while
then, no operational method can be devised to others prefer the basic model of a product and
achieve the strategy. will be dissatisfied if a product has too many
extra features.
Identifying Customer Needs Identifying
customer needs is the method of determining There are five reasons why you should
what a client needs from a product. Customer have a business plan:
needs are non-technical, and they reflect the 1. To test the feasibility of your business
customers' perception of the merchandise, not idea It is a time-saver and money-saver if you
the particular style or specifications, though already understand that your business is going
oftentimes they're closely connected. to be indefensible. Working along with your
Identifying Customer Needs business plan will check if your business is
Gather raw data feasible or not, and an efficient way to
Interpreting data
rigorously choose the most effective product or
service for your market.
2. To give your new business the best
chance of success Writing a business plan
can make sure that you pay attention to the
broad operational and monetary objectives of
your new business and also the tiny details,
like budgeting and market designing. The
method can ultimately work a smoother startup
amount and fewer unforeseen issues as your
business get up and running.
3. To secure funding Most new businesses
want a startup and working capital to induce off
the ground.
Without a well-developed business plan,
there's no chance of obtaining debt funding
from established financial institutions like
banks or equity funding from investors.
4. To make business planning more
effective
A business plan is important if you are thinking
of beginning a business, however, it is also a
vital tool for established businesses. Viable
businesses are dynamic; they alter and grow.
Your company's original business plan has to
be revised as you set new goals. Reviewing
the business plan may assist you to see what
goals were accomplished, what changes ought
to be created, or what new directions your
company's growth should take.
5. To attract investors Whether you wish to
offer your business to venture capitalists or
attract investors, you need to have a solid
business plan. A presentation could pique their
interest, however, they will need a well-written
document that they'll study before they commit
an investment.
The Business Plan Contents (1): Introduction, measurable goals, you'll be able to track your
Executive Summary, and Proponents progress and acknowledge right
away once your efforts are going off
Business Plan Introduction The business target.
plan introduction serves as the "birds-eye Why is it important that your executive
view" of your plan It is written at a high level summary is written perfectly?
while not going into details.
What is the difference between the business The Executive Summary summarizes the
concept and business model? necessary details of the business plan for its
The Business Concept A business concept readers. It is timesaving for readers, for they
should have the essence of the business in a are able to get the gist of the business plan.
short but powerful manner. Contents of the Executive Summary
The Business Model A business model is a
formula on how the business plans to make For Startup Business
money out of business. The business opportunity
Taking advantage of the opportunity
Four Areas of Business Modelling The target market
Raising revenue Business model
The cost of the enterprise products and other In writing your executive summary, you already
costs of doing business need to capture the audience's attention
immediately so that they are motivated to read
Major investments of the enterprise the remainder of the document.
Financing the investment Why should you have You need to end your business plan's
measurable goals and objectives in your executive summary with a strong and clinching
business plan? closing sentence that will justify why your
proposed business is a winning one.
The Business Goals
The business goals show the long-term and On Writing an Executive Summary Focus on
future prospects of the enterprise. It is providing a summary.
composed of the vision, mission, objectives, Keep your language sturdy and positive.
key results area, and performance indicators. Keep it short.
Goals tell you wherever you want to go; Polish your executive summary.
objectives tell you precisely the way to get Put yourself in your readers' place.
there. Who are considered to be the business
Goals will increase your effectiveness; proponents in a certain business?
objectives back your goals, and cause you to
be more economical. Types of Stakeholders
Goals are usually represented in words; Resource Mobilizers
objectives usually go together with numbers Technology Providers and Applicator
and specific dates. Government and Top Management
Operations and Support Team
The Business Goals
Specific Goal Setting A business plan introduction serves as the
Self-Efficacy "birds-eye view" of your plan.
Need for Achievement A business concept emphasizes the value of
Ambition the product to be offered to the target
Willingness to Learn customers who would most likely buy it.
Adaptability and Flexibility A business model is a formula on how the
Willingness to Take Risk business plans to make money out of
Interpersonal Skills business.
Always think of a goal that
is measurable. By establishing
The business goals show the long-term high sales volume, market share, and market
and prospects of the reach;
enterprise. high financial returns; and
The executive summary provides the key high people's performance, productivity,
points of a document for its readers, saving and morale levels.
them time and getting them ready for the entire How will the entrepreneur check if the business
content. will gain profit?
The business proponents contain information
about the stakeholders of your business. Financial Forecast
It refers to the capital investment and sources
of funding in the operation of the business.
This section will show the financial projections
over a period of one year and five-year
program and shall determine the rate of return
of investment.

Balance Sheet The balance sheet shows the

financial position of the enterprise as of the
given period of time.
It reflects the total assets, liabilities,
shareholders, and earnings preserved to fund
The Busines Plan Content. (III): Enterprise future operations or to serve as funding for
Strategy. Financial forecasting. Compliance expansion.
and Capital Structure You can use the balance sheet to work out a
Enterprise Strategy way to meet your financial obligations and
Enterprise strategy is a set of choices and discover the most effective way to use credit to
actions geared toward gaining a sustainable finance your operations.
competitive advantage.
Income Statement
Process of Enterprise Delivery The income statement shows the revenues,
System cost of goods sold, operating expenses, other
Input income and expenses, financing costs, income
Throughout taxes, and bottom-line figures.
Output
Marketing Outcome Cash Flow Statement
It is a projection of money receipts and
Process of Enterprise Delivery expense payments. It shows how and when
System money flows through the business. It provides
The enterprise delivery system involves verification of whether a company has enough
harnessing human, money, and physical liquidity or money to pay its expenses.
resources from well-selected suppliers. These A cash flow statement may be a valuable
resources become the input that the operations measure of strength, profit, and the long-run
unit within the enterprise delivery system will future outlook for a company.
convert or transform into output.
The output will be delivered to the customers Environmental and Regulatory
through the marketing unit of the enterprise Compliance
delivery system. The marketing would include The business plan should articulate the laws
the right packaging, pricing, promotion, selling and regulations governing the business, and
and distribution, and the location where the also on how the enterprise operates. It should
target customers can best be found. lay out the plans for acquiring the required
The business outcomes should reasonably permits, licenses, and authority to use
include: • high customer satisfaction levels; • proprietary intellectual capital.
The entrepreneur should identify first what type The capital structure refers to the
of business will be established so that he/she combination of debt and equity to use as the
will know the exact registrations and company's fund and finance its operations.
clearances to secure.
Capital Structure
The capital structure refers to the combination
of debt and equity to use as the company's
fund and finance its operations.
Equity Capital This form of capital refers to
any money put up and owned by the
shareholders.
Types of Capital Structure • Contributed
capital - It is the money that was originally
invested in the business for shares of stock or
ownership in return.
Retained capital - These are profits from
previous years that have been secured by the
business and used for fund growth,
acquisitions, or expansion.
Long-term bonds - It is generally considered
one of the safest types because the business
will have several years to pay the principal
while paying the interest only in a short period
of time until the loan matures. Capital Structure
Vendor financing - It happens once a
company sells a product before having to pay
their vendor. This could dramatically increase
the company's return on equity while not
costing the business any upfront.
Policyholder float financing - In the case of
insurance firms, this often refers to cash that
does not belong to the business; however, it
earns an investment until an insurance claim
has been made.
Different types of capital impose different kinds
of risks for a company. For this reason, capital
structure affects the worth of a company, and
so a lot of analysis goes into deciding what a
company's best capital structure should be.
Enterprise strategy is a set of choices and
actions geared towards gaining a sustainable
competitive advantage.
The financial forecast section of a business
plan refers to the capital investment and
sources of funding in the operation of the
business.
The business plan should articulate the laws
and regulations governing the business and its
operation through environmental and
regulatory compliance.
Opportunity Seeking: Entrepreneurial Technological Discoveries and
Imperatives and Sources Advancements
Entrepreneurial Opportunity Seeking Being Continuous advancements in technology
coined as the "innovative opportunity seekers" can be the source of highly innovative
in the business industry, entrepreneurs are opportunities in the business industry.
equipped with a spirit of inquiry that will help As an entrepreneur, you need to think about
them decide which products or services are the means adopted by shoppers when
most likely needed in the marketplace. purchasing products. You have to devise ways
Sources of Opportunities External/Macros for you not to fall out from the industry, most
Environmental Sources especially in today's digital age.
Any enterprise, company, or organization is not
alone in its business environment. It is always
surrounded by ar array of factors and forces Opportunity seeking is the first step that must
that help in shaping opportunities but also pose be taken by any start-up venture in order to
present threats to the company. have an idea as to the kind of business
opportunity that will be taken by any budding
Six Macroenvironmental Sources entrepreneur.
of
Opportunities Demographic Opportunity Screening: pre-feasibility study
Economic and feasibility study
Socio-cultural
Technological Pre-feasibility study
Ecological A pre-feasibility study refers to the analysis of a
Political and Legal potential business opportunity at an early
stage.
Internal/Micro Environmental Sources It is generally conducted to give possible
Internal sources pertain to those factors that investors the relevant information they need
can be controlled by the management. It pertaining to the implementation of a business
includes factors of resources available that idea.
affect individuals and businesses. This study is considered as a crucial aspect of
opportunity screening, for it is designed to give
Five Microenvironmental Sources of an overview of the aspects of logistics,
Opportunities required capital, key challenges, and all the
1.Customers other details deemed significant in pursuing an
Suppliers entrepreneurial decision.
Resellers
Competitors When and Why Do Entrepreneurs
General Public Conduct a Pre-feasibility Study?
Entrepreneurs conduct this type of study to
Industry and Market Disparities determine whether a full feasibility study, which
Certain disparities in the market may take is relatively more costly, must be undertaken or
place in the form of regulations, deregulations, not.
constant changes in supply chains, and other Entrepreneurs also make a pre-feasibility study
structural problems. to collect various pieces of information before
Consumer Preferences and Interests making huge investments into different tasks
Consumer preferences and interests such as acquiring permits, gathering
canalso be sources of resources, hiring staff, and purchasing tools
opportunities. These preferences refer to the and equipment.
interests or tastes of individuals. When
products eventually become outdated, Factors in Conducting a Pre-
consumers' changes in perception can feasibility Study
subsequently kill sales. Market potential and prospects
Assessment of technology and operation
viability
Investment requirement and production costs Elements of Feasibility Study
Financial forecast and determination of Technical feasibility
financial feasibility. Commercial feasibility
Market Potential and Prospects Resource feasibility
- Market potential pertains to the size of the Legal feasibility
market or consumers who will avail of the Operational feasibility
product or service.
Steps in Conducting a Feasibility
Assessment of Technology and Study
Operations Viability Create a brief preliminary analysis
- In the entrepreneurial aspect, technology Outline the scope of your project
assessment or technology evaluation takes Understand the financial and operational costs
into account the various implications of a Review and analyze the data
technology or innovation for a certain business
activity, which often involves technology
selection.
Assessment of technology specifically aims to
pinpoint if a technology, along with its other
application areas, can generate a successful
business in the future.
Investment Requirement and Production
Cost
- In all businesses, it is important for an
entrepreneur to assess the amount of money
needed to be able to start a business
opportunity.

Financial Forecast and Determination of

Financial Feasibility
- In all businesses, it is important for an
entrepreneur to assess the amount of money
needed to be able to start a business
opportunity.

Feasibility Study
A feasibility study is an in-depth report that
covers many important points, including
technical, commercial, legal, and scheduling
issues.
This study is made by delving into the main
aspects of the project, and it is conducted to
assist an entrepreneur in determining whether
or not a business opportunity must be pursued
or not.
A feasibility study can be defined as a
comprehensive analysis of the practicality of
the desired business, based on several factors
such as the marketplace, industry, competition,
technology, and other financial resources.
Opportunity Screening: The 12Rs
Opportunity Screening 12Rs
In this phase, the entrepreneur will lay down on RELEVANCE TO ONE’S VISION, MISSION,
a list of several opportunities which he will AND OBJECTIVE
evaluate prior to transforming his business The vision is a statement about why you matter
idea into a reality. as an entrepreneur with a view of what the
It is the process of making both qualitative and business will become in the future, while the
quantitative assessment of a business idea’s mission is a statement about those who might
capability of producing sales growth and be served by the venture. Refining these
promising financial performance. statements will help you clarify your
entrepreneurial story, thus achieving your
The opportunities chosen may likewise be objectives, may it be as an entrepreneur or as
evaluated by: an individual.
Identifying resources
Analyzing capabiities RESONANCE WITH ONE’S VALUES The
Evaluating competitive advantage opportunity must align with your values and
Developing strategies Review the feedback desired virtues in addition to your vision,
Evaluating Opportunities mission, and objectives. An entrepreneur
needs attributes such as honesty, passion,
Remarkable value to customers Can ideally determination, and confidence. As any
solve a compelling need, problem, or demand business venture is a reflection of the
of the market A potential cash cow entrepreneur's personal values, attitudes, and
Corresponds with the entrepreneurs skills, beliefs.
resources, and risk appetite.
REINFORCEMENT OF EXISTING
Two-Stage Approach in Screening ENTERPRISE STRATEGIES OR
Opportunities ENTREPRENEURIAL INTERESTS
Qualitative Assessment Questions such as "How well does the
Focuses on gathering information, details, and opportunity fit the entrepreneur's skill, interest,
recommendations from other entrepreneurs in and abilities?" come to light. The entrepreneur
the industry. doesn't only need to make a profit but also to
Quantitative Assessment align his interests and skills with his business
Business idea’s viability used to gauge a in order for it to flourish.
business opportunity’s feasibility and
desirability to attract investors. REVENUES
it's critical to assess the sales potential of the
The 12Rs of Opportunity Screening goods or services you wish to sell before
1. Relevance to the one’s vision, mission, starting any entrepreneurial venture.
and objective
2. Resonance with one’s value RESPONSIVENESS TO CUSTOMER NEEDS
3. Reinforcement of existing enterprise AND WANTS
strategies or entrepreneurial interests Poor customer responsiveness leads to a loss
4. Revenues of money. It may have a backlash on the
5. Responsiveness to customer needs and business if the satisfaction of the consumers
wants isn't met. It's vital for the entrepreneur to have
6. Reach a response to consumer's requests or
7. Range demands in order to grow and have good
8. Revolutionary Impact comments or ratings.
9. Returns
10. 10.Relative case of implementation REACH
11. Resources required Better possibilities are those that have a high
12. 12.Risks likelihood of developing through branches,
distributorships, dealerships, or franchise Opportunity Screening is the process where
outlets in order to achieve rapid growth the entrepreneur will lay down a list of several
RANGE opportunities, which he will evaluate prior to
The opportunity can lead to a wide range of transforming his business idea into reality.
product or services offerings. We need to know The 12Rs of opportunity screening are the
if we can offer a huge amount of good products following: relevance, resonance,
and services to the people. It should not be reinforcement, revenues, responsiveness,
static or be maintained as it is. We need to reach, range, revolutionary impact,
have consistent innovativeness to assure the returns, relative ease of
success of our business. implementation, resources, and risks.
Positive and Negative Indicators of the 12Rs of
REVOLUTIONARY IMPACT Opportunity Screening
The opportunity is the next big thing. As Positive Indicators:
mentioned earlier, the opportunities we take Relevance
must have a significant impact towards Resonance
everyone we cater and even to us, the Reinforcement
entrepreneurs. We need to create a very Revenues
successful change towards a certain Responsiveness
community that’ll also assist the society. Reach 7) Range
Revolutionary impact
RETURNS Returns
The opportunity yields the highest returns on Relative ease of implementation Negative
investments. It is important that the Indicators:
opportunities we take must give us the Resources
sufficient amount of profits over the amount of Risks
costs or the amount of money spent. It is really Opportunity Seizing: Business Position
important that we should always be a Statement
beneficiary of our business as well. Opportunity Seizing The stage of determining
the critical success factors of succeeding in the
RELATIVE EASE OF IMPLEMENTATION industry, while also being cautious about other
The opportunity is easy to implement. Of factors that cause failure to some businesses.
course it would be hard to achieve what we Objectives of Opportunity Seizing
want to achieve in our business if we’re Given that opportunity seizing is the final stage
already having so many complications in terms of choosing the most
of the implementation of a certain thing in our feasibility opportunity, it's
business. relevance in entrepreneurship dwells
RESOURCES REQUIRED on two main objectives:
Opportunities requiring fewer resources from to enable the entrepreneur to transform his
the entrepreneur may be more favored than business
those requiring more resources. This is opportunity into a reality, and
because the higher the amount of resources to address the compelling needs or demands
needed, the more complications especially in of the market.
financial aspects occur.
RISKS What are the secrets to
In an entrepreneurial endeavor, there will opportunity seizing?
always be risks. However, some opportunities Stepping out of the comfort zone
carry more risks than others, such as those Make the small ones count
with high technological, market, financial, and Network with creative and business-minded
people risks. So we need to evaluate risky people
opportunities in order to prevent further Business Position Statement
complications that could possibly lead to the A business position statement refers to a brief
downfall or failure of the business as a whole. description of a product or service catered by
the business and specifically how such a The following is a sample format in crafting
product or service answers the compelling a business position statement:
need of the target market. "For [state the target market] who [the needs of
Its main purpose is to introduce the product or the target market], [business or brand name]
service to the customers and to align the provides [what differentiates the business from
branding efforts with the brand and its value other competitors] because [why should the
proposition. target market believe in the business.]"
Example: Crafting a Business
A business position statement refers to a Position Statement
brief description of a product or service catered "For consumers who want to purchase different
by the business and specifically how such products online with competent delivery
product or service answers the compelling services, ABC provides a fully-functional online
need of the shopping site. ABC sets itself apart from other
target market online retailers with its basic mission: a
commitment to operational excellence to all its
Value Proposition vs. Business Position valued consumers."
Statement Opportunity seizing pertains to the stage of
A value proposition is broader in nature and determining the critical success factors of
is a direct output of a business strategy. It succeeding in the industry, while also being
refers to a bigger picture which includes all the cautious about other factors that cause failure
core benefits offered to various market to some businesses.
segments and the price that a customer pays A business position statement refers to a
to acquire those benefits. brief description of a product or service catered
A business position statement is more by the business and specifically how such a
specific and technically deals with a subset of product or service answers the compelling
the value proposition. need of the target market.
It is oftentimes used in marketing programs Four Major Components of a Business
and activities of the entrepreneur. Position Statement
Writing a Business Position Target Market
Statement Point of Differentiation
Needs of the Market
1. Keep it short.
How would the differentiator help the target market
A business position statement is not about the
vision and mission of an enterprise. Therefore,
such statements should be concise and
straightforward.
Make it unique and remarkable. If the
entrepreneur wants to stand out in the industry,
the business position statement should be
crafted in a unique way.
Stick to the core values of the
business.
A business position statement must reflect
primordial values of the enterprise itself.
the
4. Show how the business is
different from other competitors. The
competition will always be present in any
industry. As such. an effective
business position statement should
point out what separates the business from its
main competitors.