Learning Objectives:

1. Identify the players/ competitors within the town.

2. Identify the different products/services available in the market.
3. Identify the profile of potential customers.
4. Identify the customer’s needs and wants through consumer analysis.
5. Conduct consumer/market analysis.
6. Explore ways of generating business idea from ones’ own
characteristics/attributes.
7. Generate business ideas using product innovation from irritants, trends
and emerging needs.
8. Generate business ideas using Serendipity Walk
Pre- Assessment

1. Which of the following is not an example of people’s basic needs?

a. Clothing
b. Food
c. Recreation
d. Shelter

2. Which of the following should be considered first by a prospective

entrepreneur in choosing the right location for his/her store?
a. Access of the target customers
b. The attractiveness of the store layout
c. The prevailing prices of goods in the area
d. Types of merchandise
3. Lawrence plans to put up a “Seafoods Restaurant” in their locality.
Which of the following will help him determine a successful plan for
setting up his business?
a. Checking for similar business to avoid competition
b. Conduct a SWOT analysis
c. Getting feedback on the quality of service
d. Survey of consumer associations

4. Why do Eleazar studies the population in his immediate community?

He is doing this to__________________________________.
a. determine whom to sell his product or service
b. identify his would be “suki”
c. predict his biggest buyer
d. select his favorite costumers
5. When an entrepreneur improves and alter products to make it more appealing to
target consumers, he/she is doing an __________ of the product.
a. alteration
b. improvisation
c. innovation
d. invention

6. It is a process of gathering, analyzing, and dispensing information for tactical or

strategic purposes
a. Environmental analysis
b. Environmental evaluation
c. Environmental Scanning
d. Environmental differentiation
7. Letter “T” in SWOT Analysis stands for ____________
a. Training
b. Threats
c. Treats
d. Trim

8. Which of the following is not an example of strength and weakness of a business?

a. Competitions
b. Technology
c. Economics
d. Profitability
9. It refers to the positive factors that may influence your business.
a. Strength
b. Competitions
c. Threats
d. Weaknesses

10. It is the basic indicator of the kind of business to raise.

a. Needs
b. Education
c. Leisure
d. Luxury
NEEDS VS. WANTS
 Needs in business are important things that every individual
cannot do without in a society. These include:

1. Basic commodities for consumption

2. Clothing and other personal belongings
3. Shelter, sanitation and health
4. Education and relaxation
 Basic needs are essential to every individual in order to live with dignity
and pride in the community. These can obviously help generate business ideas.

Wants are desires, luxury and extravagances that signify wealth and
lifestyle. These are over and above the basic necessities of life. Some
examples of non- basic needs are; fashion accessories, shoes, travels, eating in fine
dining restaurants; watching movies, concerts, plays; owning luxurious cars, wearing
expensive jewelry , perfume, living in impressive homes, and others.
 Needs and wants of people are the basic indicators of the kind of
business that you may engage in as they can serve as measure of your
success. Some other good points that you might consider in business
undertakings are the kinds of people, their needs, wants, lifestyles,
culture and tradition, and social orientation.
Lesson 2. Generating Ideas for Business
1. Examine the existing goods and services.

Are you satisfied with the product? What do other people who use the
product say about it? How can it be improved? There are many ways of
improving a product from the way it is made to the way it is packed and
sold. You can also improve the materials used in crafting the product. In
addition, you can introduce new ways of using the product, making it
more useful and adaptable to the customers’ many needs. When you are
improving the product or enhancing it, you are doing an innovation. You
can also do an invention by introducing an entirely new product to replace
the old one.
2. Examine the present and future needs.

Look and listen to what the customers, institutions, and communities

need in terms of goods and services. Sometimes, these needs are already
obvious and felt at the moment. Other needs are not that obvious because
they can only be felt in the future, in the event of certain developments in
the community. For example, a town will have its electrification facility in
the next six months. Only then can you think of electronic business such
as photo copier, computer service, digital printing, etc.
3. Examine how the needs are being satisfied.

Needs for the products and services are referred to as market demand. To
satisfy these needs, products and services must meet the demands of the
market. The term market refers to whoever will use or buy the products or
service, and these may be people or institutions such as other businesses,
establishments, organizations, or government agencies.
4. Examine the available resources around you.

Observe what materials or skills are available in abundance in your area. A

business can be started by selling available raw materials and by processing and
manufacturing them into finished products. For example, in a Bangus/Milkfish
Producing town, large supply of Bangus/Milkfish can be sold and processed
into “Ordinary Smoked Bangus”; Smoked Soft Boned Bangus; Deboned
Bangus; Dried Bangus. This can be sold profitably outside the community.
5. Read magazines, news articles, and other publications on new
products and techniques or advances in technology.

You can pick up new business ideas from Newsweek, Reader’s Digest,
Business Magazines, Go Negosyo materials, Small- industry Journal.
The Internet serves as a library where you may browse and surf for
possible businesses. It will also guide you on how to put the right
product in the right place, with the right price, at the right time.
Lesson 3. Selecting the Right Idea
 You have to select the most promising one from among
hundreds of ideas. It will be good to do this in stages. In
the first stage, narrow down your ideas to about five
choices. In the next stage, trim down the five to two
options. In the final stage, choose between the two and
decide which business idea is worth pursuing.
In screening your ideas, examine each one in terms of the following:

1. How much capital is needed to put up the business?

2. How big is the demand for the product? Do many people need this product
and will continue to need it for a long time?

3. How is the demand met? Who are processing the products to meet the
need (competition or demand)? How much of the need is now being met
(supply)?
4. Do you have the background and experience needed to run
this particular business?

5. Will the business be legal, not going against any existing or

foreseeable government regulation?

6. Is the business in line with your interest and expertise?

Lesson 4. Environmental Scanning
 There is a need to conduct environmental scanning to
identify the needs and wants of people, the niche for your
business mission, and to give attention to trends and issues.
This may also serve as an evaluation of the type of the
entrepreneurial activity that is appropriate
in the community.
 Environmental scanning is defined as a process of
gathering, analyzing, and dispensing information for
tactical or strategic purposes. The environmental
scanning process entails obtaining both factual and
subjective information on the business environments
in which a company is operating.
 Environment in the community can be viewed
according to its technological, political, economic, and
social aspects. For instance, you have your own Smoked
Fish Industry, and have successfully made and adapted
innovations on the preparations and in the packaging of
your smoked products. People will look for the changes
they experienced that relate to their environment.
 As a future entrepreneur, you must be knowledgeable
in this kind of advancement and progression of your
environment particularly in new innovations so as to ensure
the success of your future business. Always think of
something fresh, something novel, authentic; reinvent the
existing ones, and create your new version of
goods/products, and services.
SWOT
S- STRENGTH
W- WEAKNESSES
O- OPPORTUNITIES
T- THREATS
Strengths and Weaknesses ( Factors tend to be in the present
such as products, pricing, costs, profitability, performance,
quality, reputations and many more), Opportunities, and
Threats (Factors tend to be in the future such as markets,
customers, seasonality, competitions, politics technology,
economics seasonality etc) in your environment to ensure that the
products/goods and services you are planning to offer will be
patronized within the easy reach by your target
markets/consumers.
 Bear in mind these simple rules for successful SWOT analysis:
• Be realistic about the strengths and weaknesses of your business
when conducting SWOT analysis.

• SWOT analysis should distinguish between where your business is

today, and where it could be in the future.

• SWOT should always be specific. Avoid any areas.

• Always apply SWOT in relation to your competition i.e. better than

or worse than your competition.
• Keep your SWOT short and simple. Avoid complexity
and over analysis.

• SWOT is subjective.
 There are three main sets of decisions that you need
to make:

What to produce?

How to produce?

How to share or sell the product in the market?