Entrepre

neurship
12
 Differentiate business concept and business
model
 Create the business goals
 Entrepreneurs guide throughout the business
process.
 Serves entrepreneur who set a navigational
course.
 Serves investors and cautions financiers
 Serves managers and staff of an organization
I. Introduction
a. The business Concept and the Business Model
b. The Business Goals: Vision, Mission, Objectives and Performance
Targets
c. the Business Offering and justification
II. The 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
VI. The Product and Service Offerings
VII. The Enterprise Strategy and Enterprise Delivery Systems: Business
Competitiveness
VIII. The Financial Forecasts and Expected Returns, Risks, and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offering: Returns and Benefits to
Investors, Financiers, and Business Partners
 Business Concept
Contains the essence of the enterprise in a
concise but powerful manner.
Stresses the value of the product offering to
the target customers
The Product concept must the be translated to
business model.
 Isa formula on how the enterprise exactly
plans to make money out of the business.
 How will the business raise revenues? What are the
critical factors will cause the revenues to materialize?
 What will be the costs of the enterprise products and
other costs of doing business? How ill these costs be
managed to ensure comfortable profits? what critical
factors will drive the costs? How can these factors be
controlled?
 What will be the major investments of the enterprise?
Why will these investments give the enterprise a
competitive edge?
 How will the enterprise finance the investments? How
will the enterprise fund its growth?
 Show the future and long-term prospects of
the enterprise.
 Composed of the vision, mission, objectives,
key result areas, and performance indicators
of the enterprise
 The vision of Double Happiness is to
“establish a commanding presence and
market leadership as a food chain servicing
major bus terminals in Central Luzon within
the next five years.”
 The business goals are communicated by
articulating the basic purpose of setting up the
enterprise in a mission statement. Needless to
say, all business enterprises are established for
the purpose of money making for its investors.
 For double happiness, its mission statement
is “to provide quality food and passenger
convenience services that would generate
sufficient profits for the stockholders and
improve the lives of its employee.”
 The vision and mission statements must then
be translated into measureable end results,
more popularly called objectives
 Objectives must then be ore specific than the
vision and mission statements. They should be
measureable, achievable and time-bound.
 For Double Happiness, their stated objectives
are:
1. to establish a strong market presence in Central luzon;
2. to earn good good financial returns for its owners;
3. to delight customers with high quality, food and
services; and
4. to make Double Happiness a happy and rewarding place
to work in.
 The objectives should be then translated into
key result areas or KRAs.
 KRAs- qualitative manifestations that the
objectives are being achieved.
 In the case of double happiness,
presence in Central Luzon
2. To earn good financial returns for 2a. Amount of net profits realized for the next five
its owners
3. To delight customers with high
quality food and services
4. To make Double Happiness a
happy and rewarding place to work
in
Central Luzon
1b. Sales volume attained
1c. Market shares in Central Luzon
years
2b. Returns on equity (ROE)
2c. Return on assets (ROA) or return on investments
(ROI)
2d. Return on sales (ROS)
3a. Growth in sales per outlet
3b. Percentage of repeat customers
3c. Number of customer commendations or
complaints
3d. Awards and recognition given by the community
or the government for excellent service
3e. Customer survey rating to ascertain customers’
degree of delight
4a. Compensation and benefits of managers and
workers are above industry rates
4b. Management and employee turnover
4c. Number of job applicants compared to other
similar establishments
 In turn, the key result areas must be
rendered into quantified performance
measurements
(performance indicators)
- Serve as the aspirational scorecard of the
enterprise managers and the motivational
results of the investors.
 Key Result Areas Performance Indicators
2018 2019 2024
(now) (one year later) (five years later)

1a. Number of food outlets in 3 5 20

major bus terminals in Central
Luzon
1b. Sales volume attained P7M P13M P60M
1c. Market shares in Central 2% 3% 12%
Luzon
2a. Amount of net profits P1M P2M P10M
realized for the next five years
2b. Returns on equity (ROE) 30% 40% 60%
2c. Return on assets (ROA) or 15% 20% 30%
return on investments (ROI) 14% 15% 16%
2d. Return on sales (ROS)
 Key Result Areas Performance Indicators
2018 2019 2024
(now) (one year later) (five years later)
3a. Growth in sales per outlet 20% 20% 20%
3b. Percentage of repeat 30% 40% 50%
customers 6 out of 20 10 out of 20
3c. Number of customer 4 out of 20 1 out of 50 1 out of 100
commendations or complaints 1 out of 20 One of Bulacan Two by Central
3d. Awards and recognition None chamber Luzon Provinces
given by the community or the
government for excellent
service
3e. Customer survey rating to 3.5(on scale of 1 to 4 (on scale of 1 to 4.5 (on scale of 1
ascertain customers’ degree of 5) 5) to 5)
delight
4a. Compensation and benefits Same as industry 5% above industry 15% above
of managers and workers are industry
above industry rates
4b. Management and employee 3 out of 10 per year 2 out of 10 per 1 out of 10 per
turnover year year
4c. Number of job applicants 10% more job 20% more job 30% more job
compared to other similar applicants applicants applicants
establishments