: Entrepreneurship

REVIEWER
MODULE 14 and promote your offerings will
Marketing mix have a direct impact on the
• The marketing mix is a key success of your brand
foundation on which most modern
marketing strategies and business Physical
activities are based. • It's important for consumers to
1960s know that the brand they're
• The concept of the Marketing Mix purchasing from or interacting
came with, are legitimate and, well,
• Neil H. Borden, professor and actually exist in real life.
academic, elaborated on James People
Culliton's concept of the marketing • Involves anyone directly, or
mix. indirectly, involved in the business
James Culliton side of the enterprise.
• described business executives as Process
'mixers of ingredients': the • Describes a series of actions that
ingredients being different are taken in delivering the product
marketing concepts, aspects, and or service to the customer.
procedures.
Jerome McCarthy The three (3) levels of product:
• founded the concept Core product
• who offered the marketing mix as • is NOT the tangible physical
we know it today; in the form of product. You can't touch it.
The 4Ps of Marketing: Product, Benefit product
Place, Price, & Promotion. • the product that makes it valuable
to you.
The 7Ps of Marketing Actual product
Product • is the tangible, physical product.
• This could refer to a physical • You can get some use out of it.
product, a service or an experience. Augmented product
Basically, anything that's being • the non-physical part of the
sold. product.
Place • It usually consists of lots of added
• Signifies where you choose to value, for which you may or may
distribute or allow access to your not pay a premium.
product or service. • The features of augmented
Price products can be converted into
• The price you set should reflect benefits for individuals.
your customer's perceived value of
your product and should correlate
with your budget.
Promotion
• The way that you choose to
communicate with your audience

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MODULE 16 • There are a number of ways you
The 4Ms of operation in relations to can identify this need, including
business opportunity: research, focus groups, and even
trial and error.
Method Step 2: Make a Plan
• refers to the system and step by • A business plan is a blueprint that
step process in the business. will guide your business from the
Manpower start-up phase through
• this is the worker. establishment and eventually
• When setting up a business, business growth, and it is a must-
finding honest and capable people have for all new businesses.
is always a challenge. Step 3: Plan Your Finances
Materials • Starting a small business doesn't
• sourcing raw materials is critical in have to require a lot of money, but
any business endeavor as the it will involve some initial
businessman would want to have investment as well as the ability to
the cheapest possible at the cover on-going expenses before
highest quality. you are turning a profit. Put
Machines together a spreadsheet that
• machinery is also important. estimates the one-time start-up
• Without the proper equipment, costs for your business.
you will not be able to perform the Step 4: Choose a Business Structure
needed tasks efficiently. • Your small business can be a sole
Product descriptions proprietorship, a partnership, a
• play a huge part in generating limited liability company (LLC) or a
sales. corporation. The business entity
Tagline you choose will impact many
• is, by definition, a pithy descriptor factors from your business name,
used in marketing campaigns to to your liability, to how you file
communicate the unique value your taxes.
proposition of a brand or its Step 5: Pick and Register Your Business
products. Name
• The goal of a tagline is to leave • Your business name plays a role in
consumers with a lasting positive almost every aspect of your
impression business, so you want it to be a
good one. Make sure you think
MODULE 17 through all of the potential
The 10 steps that are required to siars implications as you explore your
Business successfully: options and choose your business
Step 1: Do Your Research name.
• In order for a small business to be
successful, it must solve a problem, Step 6: Get Licenses and Permits
fulfill a need or offer something • Paperwork is a part of the process
the market wants. when you start your own business.

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• There are a variety of small MODULE 18
business licenses and permits that Startup costs
may apply to your situation, • are expenses incurred before the
depending business is running
Step 7: Cross Your Accounting System • not a universally accepted or
• on the type of business you are carefully defined financial consent
starting and where you are located. Starting costs
• Your accounting system is • expenses you incur and assets you
necessary in order to create and need before you can launch the
manage your budget, set your business.
rates and prices, conduct business Startup expenses
with others, and file your taxes. • These are expenses or upfront
Step 8: Set Up Your Business Location costs that happen before you
• You will need to think about your launch and start bringing in any
location, equipment, and overall revenue.
setup, and make sure your Startup expenses’ Categories:
business location works for the One-Time Expenses
type of business you will be doing. • Permits and licenses, Incorporation
Step 9: Get Your Team Ready fees, Logo design, Website design,
• Make sure you take the time to Brochure and business card
outline the positions you need to printing, Signage, Down payment
fill, and the job responsibilities that on rental property, Improvements
are part of each position. to chosen location
Step 10: Promote Your Small Business Ongoing Expenses
• You'll want to start with the basics • Rent, Payroll, Taxes, Legal services,
by writing a unique selling Loan payments, Insurance
proposition (USP) and creating a payments, Utilities, Marketing
marketing plan. Then, explore as costs
many small business marketing Startup assets
ideas as possible so you can • These are costs associated with
decide how to promote your long-term assets purchased in
business most effectively. order to start your business. While
cash in the bank is the most basic
Why should I keep records? startup asset
1. Monitor the progress of your
business There's a reason that you should
2. Prepare your financial statements separate costs
3. Identify sources of your income into assets and expenses.
4. Keep track of your deductible Expenses
expenses • are deductible against income, so
5. Help prepare your tax return they reduce taxable income.
6. Support items reported on your Assets
tax returns • are not deductible against income.

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Two ways to plan for startup costs: their money to sustainably grow
1. The traditional method: Startup your
worksheet 2. Plan for the future, by considering
• The traditional method uses a best, worst, and most likely case
startup worksheet scenarios in detail.
• It includes lists of startup expenses 3. Anticipate changes that may affect
in the upper left, startup assets in your business as it grows, such as
the lower left, and startup funding entering a new tax bracket.
on the right.
2. The Live-Plan method: Types of Pro Forma Statement:
Consolidated estimates Full-year pro forma projection
• Live-Plan suggests a different and • This type of pro forma projection
probably more intuitive way to takes into account all of your
estimate startup costs. financials for the year up until the
• The key difference between Live- present time, then adds projected
Plan and traditional methods are outcomes for the remainder of the
the estimates start when a year.
business starts spending rather Financing or investment pro forma
than when it launches and starts projection
getting revenues • You may be courting investors or
• There is no division between the trying to convince your business
launch date and pre-launch partners of the value of financing
spending. So there is no specific your business.
startup table. • It takes into account an injection of
cash from an outside source plus
MODULE 19 any interest payments you may
pro forma need to make-and shows how it
• actually a Latin term meaning for will affect your business.
form Historical with acquisition pro forma
• financial reports for your business projection:
based on hypothetical scenarios. • This type of pro forma projection
• These statements can help you looks at the past financial
make a business plan, create a statements of your business, plus
financial forecast, and even get the past financial statements of a
funding from potential investors or business you want to buy.
lenders. • Then it merges them to show what
The three major pro forma statements: your financials would have looked
• Pro forma income statements like if you made the acquisition
• Pro forma balance sheets earlier.
• Pro forma bas statements Risk analysis pro forma projection
Importance of Pro Forma: • Looking at both best case and
1. Get financed, by showing lenders worst case scenarios helps you
or investors how you would use anticipate challenges you may face
in the future.