ENTREP REVIEWER
Creativity involves thought processes that look at
SOURCES OF IDEAS FOR things from different perspectives using
ENTREPRENEURIAL VENTURES imagination and inspiration (lateral thinking)
● From the Product: Differentiating existing ● Brainstorming: Unstructured group
products by changing features like shape, discussion to elicit ideas
size, color, and contents ● Problem Inventory Analysis: Directed
● From the Process: Ideas arise from toward identifying all possible problems
production and distribution methods, or encountered with a specific product or
an entrepreneur's dissatisfaction with service
available products ("annoyance-driven ● Free Association: Expressing thoughts
innovation") associated with specific words or ideas to
● From the Person: Sourced from personal elicit unconscious thoughts
interests, hobbies, experiences, and skills, ● Checklist Method: Listing all possibilities
including those gained from prior where ideas can be connected, reprocessed,
employment or associated
● From Relationships: Family, friends, and
neighborhood problems can provide 3. Through Trends in Business Environment
business ideas
● Suppliers of Major Inputs: Pressure from
rising raw material costs can lead to
seeking alternative sources (e.g., switching
METHODS FOR TESTING OR GENERATING to biodegradable packaging)
NEW IDEAS ● Differentiate Product: Altering contents
or packaging to establish customer loyalty
1. Through Logical Thinking
● Lower the Selling Price: Encouraging
Logical thinking is the systematic and rational demand by offering lower prices than
way of providing an answer to a question, helping competitors
entrepreneurs make decisions based on facts and
data
CREATIVITY: A NEW WAY OF LOOKING AT
● Statistical Analysis: Systematic analysis of
THINGS
data from population surveys (e.g.,
surveying customers to determine online Creativity is the capacity to originate a new idea
shopping preferences) from current exposure, thinking beyond
● Market Analysis: Undertaken to know systematic and rational ways
factors affecting demand for a product or
service (e.g., studying competitor pricing ● How to Learn Creativity: Be observant,
before opening a shop) look from different perspectives, think of
● SWOT Analysis: A technique describing improvements, and connect ideas with
the state of competition by identifying observations
Strengths, Weaknesses, Opportunities, and ● How to Improve Creativity: Learn from
Threats various sources, reflect, take notes of all
● Delphi Technique: Generating ideas from a ideas, and never reject any
select group of experts through various
Factors that Influence Creativity
rounds of consultation
1. Problem solving factors: Providing an
2. Through Creative Thinking
answer to a problem
2. Motivational factor: Willingness to
address dissatisfactions
ENTREP REVIEWER
3. Situational factor: Knowing how to 2. Second, there are conditions for the
implement plans and convince others to realization of the objective.
cooperate 3. You must make decisions or take action.
4. Organizational factors: Nurturing
environments where creativity thrives
● Confluence Approach: A balance of the
FIVE STAGES OF OPPORTUNITY
interaction of all four factors to converge
RECOGNITION
into creativity (Sternberg & Lubart, 1999)
(According to Hills, Shrader, & Lumpkin)
1. Precondition: This is a preparatory stage,
CREATIVE PROBLEM SOLVING (CPS) during which the individual assesses
his/her knowledge of the market.
A process for solving problems using creative
2. Conception: This is the gestation stage,
techniques where solutions are often less
during which entrepreneurial intentions
straightforward than the scientific method
and ideas are generated.
● Osborn-Parnes Model: Developed in 1950, 3. Visionary: This third stage provides the
focusing on problem identification and individual a hunch that can serve as an
solution selection opportunity for business.
○ Divergent Thinking: Used to 4. Assessment: This stage involves the
generate a wide range of evaluation on whether the idea can be
possibilities realized or not.
○ Convergent Thinking: Used to 5. Realization: The last phase suggests the
evaluate and narrow down options production of a prototype.
Osborn-Parnes Steps: THREE FACTORS IN OPPORTUNITY
RECOGNITION
1. Setting the Objective: Identify a broad
goal ● Market Awareness (Prior knowledge of the
2. Revisiting the Objective: Research and market): Refers to personal exposure to
gather information related to the goal the market and its components including
3. Identifying the Problem: Define the customers and suppliers.
specific problem using divergent thinking ● Entrepreneurial Readiness
4. Looking for a Solution: Generate various (Entrepreneurial alertness): Refers to a
potential solutions variety of features of an individual to start
5. Selecting a Solution: Evaluate and choose a business venture.
the best option using convergent thinking ● Connections (Networks): Opportunity
6. Accepting the Solution: Implement the recognition is heightened when the
chosen solution individual has a diversity of networks
(Hisrich, Peters, and Sheperd, 2010).
OPPORTUNITY RECOGNITION PROCESS
According to Cambridge Dictionary, an Pathway Description
opportunity is “a situation or occasion that makes
it possible to do something that you want to do.”
Three elements in this simple definition:
1. First, you want to do something
ENTREP REVIEWER
Rational Also called the traditional ● Introduction: The entrepreneur devotes
Approach approach. Usually applicable resources and time to marketing the
for business ideas requiring product.
substantial investments or ● Growth: Occurs if there are repeat
undertaken by Schumpeterian purchases or sustained demand from initial
entrepreneurs. Starts with and subsequent buyers.
questions like "Ano ang
● Maturity: The product is widely accepted
pwede?" (What is possible?)
with brand loyalty and patronage from the
or "Ano ang pinakamainam?"
(What is best?) target market.
● Decline: Becomes real when competitive
products with newer innovations and
creative differentiations are introduced
and accepted.
Intuitive The alternative pathway.
Approach Starts with the recognition of
Defining a Business Plan
an opportunity and proceeds
directly to grabbing it after
● A document prepared by the entrepreneur
sensing it can be done.
that integrates all functional areas.
Phrases include "Mukhang
pwede" (Looks like it works) ● It serves as a guide for action.
or "Kung kailangan ko, ● Four Major Pillars:
kailangan din ito ng iba" (If I 1. Marketing: Identifying buyers and
need it, others need it too). promotion.
2. Operations: Production methods
and machinery.
3. Finance: Funding sources and
profit analysis.
PRODUCT PLANNING AND DEVELOPMENT
4. Human Resources: Management
PROCESS
and staff.
Hisrich, Peters, and Shepherd (2010) identified ● The Roadmap Metaphor:
various stages a product or service undergoes in its 1. External Elements (The Road):
life, taking two main phases: Factors you cannot control like the
economy and regulations.
1. Precommercialization Phase 2. Internal Elements (The Vehicle):
Controlling things like
● Idea Stage: Formation of business ideas.
manufacturing, marketing, and
● Concept Stage: Refinement and
personnel.
visualization of ideas that can serve as
3. You must anticipate obstacles so
business opportunities.
you don't get "stuck" in the first
● Product Development Stage: The business
few years.
idea is concretized with the production of
● 3 Critical Questions:
a prototype.
1. Where am I now? (The Status Quo:
● Test Marketing Stage: Products/services
savings, prototypes, and market
are introduced to the market after
gaps).
evaluation and feedback from potential
2. Where am I going? (The Goals: sales
customers.
targets and business size).
2. Commercialization Phase (Product Life Cycle 3. How will I get there? (The
by Vernon) Strategy: the "route" or action
plan).
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● Location/Accessibility: Distance from key
Why Write a Business Plan? locations and ease of reaching the hostel
from entry points like airports.
● Viability: To see if a business idea can
● Service Offerings: Rooms only (basic
work.
accommodation), Bed & Breakfast, or
● Resource Management: Identify what the
Tours (partnerships or in-house).
business needs (tools, people, resources,
● Costs & Assets: Equipment (beds, fixtures),
etc.).
kitchen needs, rental rates, utility costs,
● Financing: The main tool used to convince
personnel salaries, and registration fees.
others to provide money for the business.
Sections of the Business Plan
Target Audiences
1. Introductory Page: Business name, address,
● Entrepreneur: Serves as the roadmap,
owners, nature of business, financing
identifies resources, and helps anticipate
needed, and confidentiality statement.
potential risks.
2. Executive Summary: Highlights
● The Lender: Lenders use the plan to see if
summarized in two or three pages.
they will get their money back. They look
3. Environmental and Industry Analysis:
at the "Four Cs of Credit":
Covers sociocultural, technological,
1. Character: Do they pay back loans
economic, and politico-legal conditions, as
“religiously”?
well as supply and demand.
2. Cashflow: Is there enough money
4. Description of the Business:
to pay back?
Products/services, size, mission, core
3. Collateral: Are there assets that the
values, location, and owner backgrounds.
bank can take?
5. Production Plan: Manufacturing process,
4. Equity contribution: How much of
physical plant, machinery, and suppliers.
their own money (skin in the game)
6. Operations Plan: Company operations and
did the owner put in?
flow of orders.
● The Investor: Gauges whether projected
7. Marketing Plan: Pricing, distribution,
returns are acceptable (typically looking
promotion, and sales forecasts.
for substantial returns in five years or
8. Organizational Plan: Management team
more). They value the "Breadth and
backgrounds, roles, and responsibilities.
Variety of Experience" in the team and
9. Financial Plan: Assumptions, pro forma
view the relationship as a "Business
statements (balance sheet, income
Marriage".
statement), cash flow, and breakeven
analysis.
10.Assessment of Risk: Potential
Hostel Business Considerations (Example Case)
internal/external risks and prevention
The document uses a hostel as an example for
strategies.
planning:
11.Timetable/Milestones: Tracking progress
● Market Conditions: Competition analysis (e.g., registration, prototype, first orders).
and occupancy rates. 12.Appendices: Market research, detailed
● Customer Nature: Primary (backpackers, financial projections, CVs, price lists, and
solo travelers) and Secondary (group competitor profiles.
travelers, students).
● Operations: Management, cleaning, Environmental Analysis Details
maintenance, and customer service.
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● Sociocultural: Population shifts (middle ● It is aligned with the overall goals of the
class, elderly) and lifestyle trends (health, business and is developed based on realistic
sustainability). assumptions about the financial, physical,
● Technological: Advances in ICT and and human resources available.
e-commerce. ● The marketing plan must have specific and
● Economic: Measured by GDP; involves measurable objectives that will allow the
inflation, interest rates, exchange rates, entrepreneur to monitor performance and
and disposable income. control business activities.
● Politico-legal: Laws, minimum wage ● It must also be able to anticipate certain
increases, health/safety regulations, and scenarios that will allow the entrepreneur
tax incentives for MSMEs. to adjust his strategies accordingly.
● Industry Status:
○ Sunrise industry: New and
booming with high demand.
COMPETITOR ANALYSIS
○ Sunset industry: Fading away due
to changing habits or technology. ● Competitor analysis is the process of
○ Risks: The "Lechon Manok" or studying other businesses that sell similar
"Uber" syndrome where market products or services to understand their
saturation occurs because everyone strengths, weaknesses, prices, and
follows a successful trend. strategies.
● It helps a business decide how to compete
and improve its own products or
Why Business Plans Fail marketing.
● Marketing strategies should be based on a
● Sloppy or unprofessional documents.
careful understanding of the business
● Overlong or incoherent executive
environment.
summaries.
● Entrepreneurs must consider customer
● Weak product-market fit or unclear
buying power, competitor prices, and costs
production feasibility.
such as transportation or retail operations.
● Unrealistic financial projections and
● The four Ps of marketing (product, price,
inadequate threat analysis.
place, and promotion) must work together
to take advantage of business
How to Present a Business Plan opportunities.
● An important part of industry analysis is
● Tell a compelling story: Focus on clear identifying competitors’ current strategies.
points; avoid jargon. ● Entrepreneurs can gather information
● Show confidence: Rehearse well. from websites, catalogs, advertisements,
● Prepare setup: Test equipment and bring articles, interviews, online searches, and
printed backups. business databases.
● Handle questions: Stay calm and ● By organizing this information in a table,
cooperative. they can easily compare competitors’
strategies and decide which ones to adopt,
DEFINITION AND PURPOSE
improve, or adjust to better meet their
● Market Plan: A marketing plan is a target market’s needs.
detailed document that explains a ● After summarizing the strategy, the
company’s marketing objectives, strategies, entrepreneur must identify competitors’
and the activities needed to carry them strengths that should be met or surpassed
out. and weaknesses or gaps in their strategy.
ENTREP REVIEWER
○ Demographic: age, gender,
Dr. Ned Roberto’s MADI Questions educational attainment,
occupation, income level.
Using MADI questions helps identify unmet
○ Psychographic: personality,
customer needs through interviews or focus group
lifestyle.
discussions:
○ Geographic: barangay,
● M – What is MISSING (“Kulang”)? city/municipality, province, region.
● A – What is ANNOYING ● Step 3: Select segment or segments to
(“Nakakabwisit”)? target.
● D – What is DISAPPOINTING ● Step 4: Prepare a marketing plan
(“Nakakabanas”)? integrating product, price, distribution,
● I – What is IRRITATING (“Nakakainis”)? and promotion.
By asking MADI questions, the entrepreneur can
confirm if customers really want flavored pan de
THE SMART FRAMEWORK
sal. Feedback may show unmet needs, such as lack
of flavor choices, long waiting times, unfriendly Marketing goals guide the business and include
service, or poor product quality. targets like market share and sales growth:
● S - SPECIFIC
● M - MEASURABLE
STEPS IN PREPARING THE MARKET PLAN
● A - ATTAINABLE
1. Assessing the business situation: A reality ● R - REALISTIC
check that turns theory into proof by ● T - TIME-BOUND
comparing performance against current
competitors using real-world data.
2. Defining the target market: Moving away THE MARKETING MIX (4 Ps)
from mass marketing toward market
segmentation (dividing the market into ● Product: Features, brand, packaging,
smaller groups). delivery, and after-sales service.
3. Setting the marketing goals and objectives: ● Price: Set by considering costs, competitor
Using the SMART framework. prices, and customer value.
4. Developing marketing strategy and action ● Place: Choosing efficient distribution
programs: Creating plans for the four Ps. channels, considering convenience and
5. Preparing the budget for the action plan: costs.
Ensuring financial resources are allocated ● Promotion: Making the product known
for activities. through advertising (print, social media,
online).
TARGET MARKET SEGMENTATION
The process of segmenting and targeting
customers includes:
● Step 1: Decide what general market or
industry you wish to enter.
● Step 2: Divide the market into smaller
groups based on: