Forms of Business: Example: A law firm where several partners

manage the business.

3. Corporation – A separate legal entity created

1. Service – Provides intangible products or
by law, offering limited liability to its owners
services for a fee. Examples include:
(shareholders). It exists independently of its
Accounting Firms – Offer financial owners and can be sue or to be sued, own
services like bookkeeping. assets, and sell stock.

Law Firms – Provide legal advice and Example: Google Inc.

representation.
STRATEGIC BUSINESS ANALYSIS:
Dry-Cleaners – Provide cleaning
1. Values – Core beliefs guiding company
services for clothes.
decisions, like ethics, sustainability, or customer
2. Merchandising – Businesses that purchase focus.
and sell goods without changing their form.
2. Vision – A long-term goal or direction. It’s
Examples include:
what the company wants to become or achieve
Supermarkets – Sell a variety of in the future.
products, from food to household
Example: A tech company aiming to be the
items.
global leader in artificial intelligence.
Clothing Stores – Buy clothes from
3. Mission – The purpose or reason for the
suppliers and sell them to customers.
company’s existence, often describing what
3. Manufacturing – Companies that create they do and who they serve.
products by transforming raw materials.
4. Strategy – A detailed plan for achieving the
Examples include:
company's mission and vision, involving
Steel Mills – Convert raw iron into steel resource allocation and goal setting.
for construction.
5. Roles & Responsibilities – Clear definitions of
Auto Manufacturers – Assemble cars who is accountable for what within the
from parts and materials. organization to ensure the strategy is executed
efficiently.
Kinds of Business Organization:
SWOT ANALYSIS:
1. Sole Proprietorship – Owned by one
individual. Simple to start as it doesn’t require Strengths – Internal capabilities giving the
formal registration. The owner bears all profits organization an edge, like a well-known brand
and losses, taxed as personal income. or strong customer loyalty.

Example: A freelance graphic designer. Weaknesses – Internal areas where the

organization may struggle, such as outdated
2. Partnership – Formed by two or more people technology or limited financial resources.
contributing resources with the intention to
share profits. Governed by a partnership Opportunities – External factors the company
agreement.(Deed of partnership) could take advantage of, like entering a new
market or using emerging technologies.
Threats – External risks that could harm the Include – Add new features or services to
company, such as economic downturns or enhance value. Example: A restaurant offering a
stronger competitors. subscription meal service.

Separate – Remove parts of a product or service

to create something new. Example: Separating a
SEVEN STRATEGIES FOR IDEA GENERATION:
phone from its camera to create a standalone
1. Analytical – Break down a problem into camera system.
smaller parts for better understanding. For
Repurpose – Use a product for a different
instance, redesigning a product by analyzing
function. Example: Turning old shipping
customer feedback.
containers into houses.
2. Search – Recall similar past experiences or
Unite – Combine two existing ideas into a new
solutions to inspire new ideas. If tasked with
product. Example: A smartphone with
creating a new product, you might look at
integrated health-monitoring sensors.
existing designs in related fields for inspiration.
Personalize – Tailor products to individual
3. Imagination-Based – Use creative thinking
customer needs. Example: A custom-made shoe
and visualization to explore new possibilities.
service.
Example: Imagining what a future car would
look like to design innovative features. Transplant – Apply a successful idea from one
place to another. Example: Bringing a popular
4. Habit-Breaking – Challenge existing
food truck model from one city to another.
assumptions to gain new perspectives. For
example, ask “What if the customer designed Effectuation Principles:
the product?”
1. Bird-in-Hand Principle – Start with what you
5. Relationship-Seeking – Look for connections have (skills, resources, and network) rather than
between unrelated concepts. Example: seeking something you don’t. Entrepreneurs
Comparing a car engine to the human heart to focus on what they know and act based on
inspire a new way of designing machinery. immediate means.

6. Development – Enhance existing ideas. Example: A chef starts a food business using
Gather a team to build upon initial ideas to personal recipes and kitchen space.
improve feasibility and effectiveness.
2. Lemonade Principle – Turn unexpected
7. Interpersonal – Work together as a group to events into opportunities. Entrepreneurs adapt
brainstorm and refine ideas. Example: A when things don’t go as planned.
brainstorming session to develop a new
Example: A business capitalizing on a sudden
marketing campaign.
market demand caused by a disruption, like
DISRUPT Framework: making face masks during a pandemic.

Derive – Start with an existing idea and modify 3. Crazy Quilt Principle – Focus on partnerships
it. Example: Tweaking an old product to meet instead of competition. Collaborating with
modern needs. others can lead to shared resources and
success.
Example: Partnering with local suppliers to
reduce costs and improve supply chain
efficiency.

4. Pilot-in-the-Plane Principle – Entrepreneurs

take control and steer their venture based on
their own actions, not external forces.

Example: Creating a business strategy based on

the entrepreneur’s goals and values.

5. Affordable Loss Principle – Entrepreneurs

focus on what they can afford to lose rather
than what they aim to gain. This reduces risk
and allows them to move forward without large
investments.

Example: A startup limits its investment to

$10,000, knowing this amount is manageable
even if the business doesn’t succeed.