Unit 5 – BA 234 Technopreneurship

Name: __WINCES LOU PILOTA_____ Year & Section:_____BSINF0-TECH 3B____

Instructor’s Name__JEANY ROSE IGNACIO_ Rating:_________________

I. Identification: Write your answer in the space provided

1. FINANCIAL PLAN It is a comprehensive overview of your financial goals and the steps you need to
take to achieve them.

2. FINANCIAL PLANNING It is process of framing objectives, policies, procedures, programs and

budgets regarding the financial activities of a concern.

3. ANGEL INVESTORS They are individuals willing to make high-risk investments in early-stage ventures.

4. VENTURE CAPITAL COMPANIES A type investors that are specifically established to invest in high-
risk ventures that offer potentially high returns.

5. PRIVATE EQUITY (PE) FIRMS A type of investors where firms are specifically established to invest in
relatively mature ventures that have at least a modest financial or operational track record while still
offering relatively attractive terms in an intermediate time frame.

6.CROWDFUNDING It is an excellent way to gather funds for startups with artistic projects or even to
raise capital to finance the manufacturing of new technology at a large scale.

7.TAKING A LOAN It is one way of keeping the initial control of the business in your own hand.

8.ENTER COMPETITIONS This is low-risk option as you get your ideas out in front of investors and if its
good

9.FRIENDS AND FAMILY They are the only ones who know your potential and will be willing to give you
money to start your business.

10.FINDING YOUR OWN IDEA Professional investors in the market prefer this way of raising funds.
II. Differentiate the following types of investors.

1. Angel Investors vs Crowdfunding

Angel investing is a good option for startups to raise large amounts of capital without being
constrained by the requirements that go along with taking out a loan. The main disadvantage,
however, is the fact that it requires trading off a certain amount of ownership in the company.
While rewards-based crowdfunding offers a work-around to that dilemma, the fees can quickly
add up. Weighing the loss of equity against cost can make it easier for startups to decide which
option is best.

2. Public Funding Agencies vs. Family and friends

Public funding agencies – Public funding agencies with the mandate and authority to fund
business ventures to achieve economic development, environmental, cultural, or social policy
objectives formulated by policy makers at various levels of government are good sources of
funding, particularly at the early stages. While One of the best places to raise funds is from your
own house. As your family is well aware of your talents, they will be willing to support you
regardless of what you want to do. Family and friends are the only ones who know your
potential and will be willing to give you money to start your business. This may seem like a great
way of gaining investment partners, but everything has its drawbacks. Acquiring loans or
investment form family or friends may be advantageous to some businesses as they have faith
in your talents and your success. But for others that require expert assistants or guidelines,
angel investors are the best way as your family might not have those experiences which are
needed.

3. Strategic Investors vs. Competitions

Strategic investors are defined by their investment intentions more than any factors. They could
be a member of any of the previous types of investors we have discussed; however, more often
they are larger companies operating or investing in the same industry or a complementary one
or market as your venture. Very often they are not in the business of investing in smaller
ventures but may believe an investment in your business would offer them some strategic value.
While Competition for gaining publicity, you can enter competitions if you believe that your idea
is capable enough. Entering these contests will be very helpful to you as in one hand if you win
the competition you will get a source of finance, and on 5 the other hand, you gain publicity for
your product and people will be waiting for it to hit the market (it acts as advertisements). This
is a low-risk option as you get your ideas out in front of investors and if it is good, you can win
the competition and get money rewards to finance the startup of your business to succeed. If
you are not able to make it and win the cash prize, being on that completion acts as an advert
for you and angel investors may contact you to invest in your idea. Both ways it’s a win for you.

4. Banks vs Loans
If you have reached a position to deal with banks, you have reached financial nirvana, as banks
offers lowest costs of capital. A famous saying goes “A bank will only lend you money when you
do not need it.” While Loans is another way to get your startup financed is a business loan from
 the bank. It is one way of keeping the initial control of the business in your own hand. Taking a
loan for startups might be healthy but only to those who have full confidence that the business
will prosper in the first run without difficulties.

5. Private Equity vs Funding your own

Private equity (PE) firms are specifically established to invest in relatively mature ventures that
have at least a modest financial or operational track record while still offering relatively
attractively terms in an intermediate time frame (i.e., one to five years). While Funding your
own startup is one way of telling your potential investors, how serious you are about this
venture. Putting your money in the project shows that you are willingly taking the risk of putting
the money that you have worked hard for at stake, supporting your idea with the faith you have
in your company.

UNIT 6

I. Explain in your own opinion or points of view why we should a Technopreneur needs a
Business Plan?

Why is a business plan important? A business plan is a very important and strategic
tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the
specific steps necessary for them to make business ideas succeed, but it also helps
them to achieve short-term and long-term objectives.

II. Give atleast 3 benefits of the business plan and explain why you choose it.

1. You can get outside funding

To get funding from lenders or investors, you need to show a business plan. Lenders want to
see that they are investing in a company that will last and grow. You must give lenders a
plan detailing the steps you will take as a business owner.
Even if your lenders are friends and family, it’s good to organize your ideas.
A business plan helps others understand your passion and see where their money is going.
Communicating clear ideas to investors helps prove you can get your business off the
ground and build it up.
You’ll need to know how to write an exit strategy for a business plan as well. A thriving
business is no good to your investors if they have no way to eventually cash in on their
investment.

2. You gain an understanding of your market

 One key piece of your business plan is knowing how to conduct a market analysis. When you
conduct this study, you look at your industry, target market, and competitors. You can see
trends in decisions that could help, or harm, your business.
Another great benefit of a business plan is learning from someone else’s mistakes. Learning
from other’s mistakes is less time consuming and financially burdening than learning from
your own mistakes. The more prepared you are to deal with the aspects of your market, the
easier it might be to handle issues down the road.

3. You focus your strategies

The entrepreneur in you is eager to dive right into business. But, having a business plan can
help you pinpoint the best strategies for your company. Before you take the plunge into
ownership, work out the important details.
This business plan benefit also helps you prioritize tasks. By looking at the big picture of your
business, you can decide which challenges to tackle first. A business plan could also help you
choose which tasks to address later.
III. Using the business model, you have done on Chapter 4, write your own Business Plan using
the Traditional business plan outline.

1. Executive Summary
1. Opportunity
1. Problem Summary
2. Solution Summary
3. Market Summary
4. Competition
5. Overview
6. Why Us?
2. Expectations
1. Forecast
2. Financial Highlights by Year [chart]
3. Financing Needed
2. Opportunity
1. Problem & Solution
1. Problem Worth Solving
2. Our Solution
2. Target Market
3. Competition
1. Current Alternatives
2. Our Advantages
3. Execution
1. Marketing & Sales
1. Marketing Plan
2. Sales Plan
2. Operations
1. Locations & Facilities
2. Technology
3. Equipment & Tools
3. Milestones & Metrics
1. Milestones Table
2. Key Metrics
4. Company
1. Overview
2. Team
1. Management Team
2. Advisors
5. Financial Plan
1. Forecast
1. Key Assumptions
2. Revenue by Month [chart]
3. Expenses by Month [chart]
4. Net Profit (or Loss) by Year [chart]
2. Financing
1. Use of Funds
2. Sources of Funds
3. Statements
1. Projected Profit & Loss
2. Projected Balance Sheet
3. Projected Cash Flow Statement
6. Appendix
1. Monthly Financial Forecasts
2. Additional Documentation
Unit 7

IV. Based on activity No.3, create the lean canvas introduced by Ash Maurya.