Beruflich Dokumente
Kultur Dokumente
Week 1
CHAPTER 1: PLANNING THE ENTERPRISE
Entrepreneur
a person who starts a business and it willing to risk loss in order to make money; they are the
one who organizes,
manages and assumes the risks of a business or enterprise.
Business Plan
is a written description of your business future. It is a document that describes what you plan to
do and how you plan to do it.
A formal written document containing business goal, the methods on how these goals can be
attained, and the time frame that these goals need to be achieved.
I. Introduction
II Executive summary
III. The business proponents: organizers with their capabilities and contributions
IV. The target customers and the main value proposition to the customer
V. The market, market justification based on the industry dynamics and the macro environment factors affecting the
opportunities and treats in the market, the size, potential and realistic share of the market
I. INTRODUCTION
A. CONTENTS OF THE BUSINESS PLAN
Business Concept
contains the essence of the enterprise in a concise but powerful manner.
Product Concept
must be translated into a business model if a formula on how the enterprise exactly plans to make
money out of the business.
Business Model
a formula on how the enterprise exactly plans to make money out of the business.
Four areas of moneymaking which the business model must address:
1. How will be business raise revenues? What critical factors will cause the revenues to materialize?
2. What will be the costs of the enterprise products and other cost of doing business? How will these
costs managed to ensure comfortable profits? What critical factors will drive the costs? How can
these factors be controlled?
3. What will be the major investment of the enterprise? Why will these investments give the
enterprise a competitive edge?
4. How will the enterprise finance the investments? How will the enterprise fund its growth?
The executive summary should then introduce and highlight the good qualities of:
1. the business proponents and their partners;
2. the enterprise organization and its capabilities;
3. the technology providers and their expertise and experience; and
4. the suppliers and all the major service providers.
Finally, the business plan must appeal to its target audience. It must highlight for them the main
features of the business plan that they are looking for.
Opportunity Seeking
Entrepreneurs are innovative opportunity seekers. They have endless curiosity to discover
new or different idea
and see whether these ideas will work in the marketplace. They create value by introducing new products
or services or finding better ways of making them.
Macro Environment
Refers to the “big or macro forces” that affect the area, the industry, and the market, which the
enterprise belongs to.
They influence how business should be conducted, how consumers will behave, how supply and
demand will move, how different competitors would position themselves and how the cost of
doing business will proceed.
Micromarket
Fully Processed Products/Services Prices of Processed Goods
refers to the specific target market segment of a particular enterprise. These are the target
customers that
represent the immediate customers of an enterprise, meaning those who are currently buying the goods or
services offered by the enterprise and its direct competitors.
Opportunity Screening
In personal screening opportunities, the entrepreneur first has to consider his or her
preferences and capabilities by asking three basic questions:
1. Do I have the drive to pursue this business opportunity to the end?
2. Will I spend all my time, effort, and money to make the business opportunity work?
3. Will I sacrifice my existing lifestyle, endure emotional hardship, and forego my usual comforts to
succeed in this business opportunity?