POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SANTA MARIA, BULACAN CAMPUS

Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

UNIT 4: SEED MODEL

OVERVIEW

SEED stands for Self-Mastery, Environmental Mastery, Enterprise Mastery, and

Development of Business Plan. It is a course model to better understand
Technopreneurship.

DESIRED LEARNING OUTCOMES

1. Recognize and scrutinize the SEED model and its importance.

2. Internalize the significance of SEED Model.

INSTRUCTIONAL MATERIALS 4

4.1.1 SELF-MASTERY

Self – Mastery – self-mastery passions come from knowing yourself. Self-mastery brings
passion. When you know yourself, you know what you want and do not want.

The technopreneur has to have a mastery of himself/herself in order to be

successful in the business. This goes beyond knowing one’s Intellectual Quotient (IQ) but
rather emphasizes on one’s Emotional Quotient (EQ) and Adversity Quotient (AQ). When
one has achieved a mastery of himself, he can use the appropriate leadership style
required to handle any situation in business.

A self-mastered person does not need high IQ, does need high EQ and AQ, is
naturally a/an: performer – competitive and efficient, epicure – sensual and cheery, boss
– takes charge and loves a good fight, whole-brained, has a personal vision and knows
strengths, and weaknesses.

For an entrepreneur, Intellectual Quotient (IQ) does not have to be very high. But
if it is high, this will be beneficial to him or her. Emotional Quotient (EQ) should be high.
This is the ability for an entrepreneur to connect to other people and be able to feel others’
emotions easily. Adversity Quotient (AQ) should be high as well. AQ is the ability to rise
up after a failure and to go against the norm. A self-mastered person is a performer,
epicure (enthusiast), and a boss. He can shift to different personality traits according to
the need of the moment. A technopreneur is whole-brained, meaning he/she uses both
the left brain (logical) and right brain (creative). Self-mastery says “I can shift from left to
right and vice versa on command.”

4.1.2 Environment Mastery

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

Environment mastery is about generating business ideas and seeking

opportunities out from his or her environment through serendipity walks, crises, trends,
etc.

An environment-mastered person understands the industry he/she is in, sees the

opportunities, not the problems, is on top of the situation instead of being, under the
situation, is the organization/industry innovator and strategist.

4.1.3 Enterprise Mastery

Enterprise Mastery is how to run a business. This pertains to the knowledge of the
different enterprise disciplines such as:

• Creating the Business

• Marketing Management
• Operations Management
• Financial Management
• Risk Management
Enterprise mastery is how to run a business. When you start a venture, start with
Marketing. Marketing is creating a promise. Operations is the next aspect that one has to
look into. Operations is keeping the promise and how to make the perception a reality.
Next is Financial Management. The best way to protect your invention or technology is to
put only a small margin on your product. This way, copycats will not waste their time
replicating your invention because they know margin is very low. Risk Management is
important. Being a technopreneur involves some risks. Technopreneurs have the ability
to take measured or calculated risks. Such risks involve working out the likely costs and
gains, the chance of success and the belief in oneself to make the risk pay off.

An enterprise-mastered person understands and integrates the functions of

management (marketing, human resource, operations, and finance), understands and
integrates the process of management (planning, organizing, directing, and controlling),
leads and inspires rather than manage.

4.1.4 Development of Business Plan

Development of a business plan covers: writing the business plan, presenting and
defending the business plan and adding refinements to the presented business plan. An
important task in starting a new venture is to develop a business plan. As the phrase
suggests, a business plan is a "road map" to guide the future of the business or venture.
The elements of the business plan will have an impact on daily decisions and provide
direction for expansion, diversification, and future evaluation of the business.

Developing a Business Plan

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

An important task in starting a new venture is to develop a business plan, which is

a "road map" to guide the future of a business or venture.

Sections of the Business Plan

A business plan should be structured like a book with the title or cover page first,
followed by a table of contents. Following these two pages, the main parts of the plan
normally appear in this order: executive summary, business mission statement, goals and
objectives, background information, organizational matters, marketing plan, and financial
plan.

EXECUTIVE SUMMARY

The executive summary is placed at the front of the business plan, but it should be
the last part written. The summary describes the proposed business or changes to the
existing business and the sector of which the business is (or will be) a part. Research
findings and recommendations should be summarized concisely to provide the reader
with the information required to make any decisions. The summary outlines the direction
and future plans or goals of the business, as well as the methods that will be used to
achieve these goals.

The summary should include adequate background information to support these

recommendations. The final financial analysis and the assumptions used are also a part
of the executive summary. The analysis should show how proposed changes will ensure
the sustainability of the current or proposed business. All challenges facing the existing
business or proposed venture should also be discussed in this section. Identifying such
challenges shows the reader that you have explored and taken into account all
considerations during the research process.

MISSION, GOALS, AND OBJECTIVES

This section has three separate portions. It begins with a brief, general description
of the existing or planned business. The overview is followed by the mission statement of
the business. You should try to limit the mission statement to three sentences if possible
and include only the key ideas about why the business exists. An example of a mission
statement for a produce farm might be: "The mission of XYZ Produce is to provide fresh,
healthy produce to our customers, and to provide a safe, friendly working environment for
our employees." If you have more than three sentences, be as concise as possible.

The third (and final) portion sets the business's goals and objectives. There are at
least two schools of thought about goals and objectives. One is that the goals are the
means of achieving the objectives, and the other is exactly the opposite--that the
objectives are the means of achieving the goals. Whichever school you follow, this is a
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

very important part of the business plan. These goals and objectives should show the
reader what the business wishes to accomplish and the steps needed to obtain the
desired results. Goals or objectives should follow the acronym SMART, which stands for
Specific, Measurable, Attainable, Reasonable, and Timed, to allow for evaluation of the
entire process and provide valuable feedback along the way. The business owner should
continually evaluate the outcomes of decisions and practices to determine if the goals or
objectives are being met and make modifications when needed.

BACKGROUND INFORMATION

Background information should come from the research conducted during the
writing process. This portion should include information regarding the history of the
industry, the current state of the industry, and information from reputable sources
concerning the future of the industry. This portion of the business plan requires the most
investment of time by the writer, with information gathered from multiple sources to
prevent bias or undue optimism. The writer should take all aspects of the industry (past,
present, and future) and business into account. If there are concerns or questions about
the viability of the industry or business, these must be addressed. In writing this portion
of the plan, information may be obtained from your local public library, periodicals,
industry personnel, trusted sources on the Internet, and Penn State Extension. Industry
periodicals are another excellent source of up-to-date information. The more varied the
sources, the better the evaluation of the industry and the business, and the greater the
opportunity to have an accurate plan.

The business owner must first choose an appropriate legal structure for the
business. The business structure will have an impact on the future, including potential
expansion and exit from the business. If the proper legal structure is not chosen, the
business may be negatively impacted down the road. Only after the decision is made
about the type of business can the detailed planning begin.

ORGANIZATIONAL MATTERS

This section of the plan describes the current or planned business structure, the
management team, and risk management strategies. There are several forms of business
structure to choose from, including sole proprietorship, partnership, corporations
(subchapter S or subchapter C), cooperative, and limited liability corporation or
partnership (LLC or LLP). These business structures are discussed in Starting or
Diversifying an Agricultural Business.

The type of business structure is an important decision and often requires the
advice of an attorney (and an accountant). The business structure should fit the
management skills and style(s) of the owner (or owners) and take into account the risk
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

management needs (both liability and financial) of the business. For example, if there is
more than one owner (or multiple investors), a sole proprietorship is not an option
because more than one person has invested time and/or money into the business. In this
case, a partnership, cooperative, corporation, LLC, or LLP would be the proper choice.

If the business is not a sole proprietorship, the management team should be

described in the business plan. The management team should consist of all parties
involved in the decisions and activities of the business. The strengths and backgrounds
of management team members should be discussed to highlight the positive aspects of
the team. Even if the business is a sole proprietorship, usually more than one person
(often a spouse, child, relative, or other trusted person) will have input into the decisions
and therefore should be included as team member(s).

Regardless of the business structure, all businesses should also have an external
management support team. This external management support team should consist of
the business's lawyer, accountant, insurance agent or broker, and possibly a mentor.
These external members are an integral part of the management team. Many large
businesses have these experts on staff. For small businesses, the external management
team replaces full-time experts; the business owner(s) should consult with this external
team on a regular basis (at least once a year) to determine if the business is complying
with all rules and regulations. Listing the management team in the business plan allows
the reader to know that the business owner has developed a network of experts to provide
advice.

The risk management portion of the business plan provides a description of how
the business will handle unexpected or unusual events. For example, if the business
engages in agricultural production, will the business purchase crop insurance? Does the
business have adequate liability insurance? Is the business diversified to protect against
the unexpected, rather than "putting all its eggs in one basket"? If the business has
employees, does the business carry adequate workers' compensation insurance? All of
these questions should be answered in the risk management portion of the business plan.
More information how liability can affect your business and on the use of insurance as a
risk management tool can be found in Agricultural Business Insurance and Understanding
Agricultural Liability. The business structure will also determine a portion of the risk
management strategy since the way that a business is structured carries varying levels
of risk to the owner and/or owners. All marketing strategies (or objectives) carry a degree
of risk and must be evaluated, and mitigation strategies should be included in this portion
of the plan.

MARKETING PLAN
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

Every purchase decision that a consumer makes is influenced by the marketing

strategy or plan of the company selling the product or service. Products are usually
purchased based on consumer preferences, including brand name, price, and perceived
quality attributes. Consumer preferences develop (and change) over time, and an
effective marketing plan takes these preferences into account. This makes the marketing
plan an important part of the overall business plan.

In order to be viable, the marketing plan must coincide with production activities.
The marketing plan must address consumer desires and needs. For example, if a
perishable or seasonal crop (such as strawberries) will be produced, the marketing plan
should not include sales of locally grown berries in January if the business is in the
northeastern United States. If the business plans to purchase berries in the off-season
from other sources to market, this information needs to be included. In this way, the
marketing plan must fit the production capabilities (or the capability to obtain products
from other sources).

A complete marketing plan should identify target customers, including where they
live, work, and purchase the product or service you are providing. Products may be sold
directly to the consumer (retail) or through another business (wholesale). Whichever
marketing avenue you choose, if you are starting a new enterprise or expanding on an
existing one, you will need to decide if the market can bear more of what you plan to
produce. Your industry research will assist in this determination. The plan must also
address the challenges of the marketing strategy proposed. This portion of the plan
contains a description of the characteristics and advantages of your product or service.
Identifying a "niche" market will be of great value to your business.

Other variables to consider are sales location, market location, promotion and
advertising, pricing, staffing, and the costs associated with all of these. All of these
aspects of the marketing plan will take time to develop and should not be taken lightly.
Further discussion on marketing fruits and vegetables can be found in Fruit and Vegetable
Marketing for Small-scale and Part-time Growers.

An adequate way of determining the answers to business and marketing issues is

to conduct a SWOT analysis. The acronym SWOT stands for Strengths, Weaknesses,
Opportunities, and Threats. Strengths represent internal attributes and may include
aspects like previous experience in the business. Experience in sales or marketing would
be an area of strength for a retail farm market. Weaknesses are also internal and may
include aspects such as the time, cost, and effort needed to introduce a new product or
service to the marketplace. Opportunities are external aspects that will help your business
take off and be sustained. If no one is offering identical products or services in your
immediate area, you may have the opportunity to capture the market. Threats are external
and may include aspects like other businesses offering the same product in close
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

proximity to your business or government regulations impacting business practices and

costs.

FINANCIAL PLAN

The financial plan and assumptions are crucial to the success of the business and
should be included in the business plan. One of the foremost reasons new businesses
fail is not having enough startup capital or inadequate planning to cover all expenses and
be profitable. The scope of your business will be determined by the financial resources
you can acquire. Because of this, you will need to develop a financial plan and create the
supporting documents to substantiate it.

The financial plan has its basis in historical data (for an existing business) or from
projections (for a proposed business). The first issue to address is recordkeeping. You
should indicate who will keep the necessary records and how these records will be used.
Internal controls, such as who will sign checks and handle any funds, should also be
addressed in this section. A good rule to follow for businesses other than sole
proprietorships is having at least two people sign all checks.

The next portion of the financial plan should be assumptions concerning the source
of financing. This includes if (and when) the business will need additional capital, how
much capital will be needed, and how these funds will be obtained. If startup capital is
needed, this information should be included in this portion. Personal contributions should
be included along with other funding sources. The amount of money and repayment terms
should be listed. One common mistake affecting many new businesses is underfunding
at startup. Owners too often do not carefully evaluate all areas of expense and
underestimate the amount of capital needed to see a new business through the
development stages (including living expenses, if off-farm income is not available).

Typically, a balance sheet, income statement, cash flow statement, and partial
budget or enterprise budgets are included in a business plan. More information on
agricultural budgets can be found in Budgeting for Agricultural Decision Making. These
documents will display the financial information in a form that lending institutions are used
to seeing. If these are not prepared by an accountant, having one review them will ensure
that the proper format has been used.

Financial projections should be completed for at least two years and, ideally, for
five years. In agricultural businesses, five-year projections are sometimes difficult to make
because of variability in prices, weather, and other aspects affecting production. One way
to illustrate these risks is to develop several scenarios covering a range of production
assumptions. This attention to detail will often result in a positive experience with lenders
because they realize that the plan covers several possible circumstances and provides
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS
Km. 39, Sitio Gulod, Pulong Buhangin, Santa Maria, Bulacan

insight into how the business plans to manage risk. More information on financing
agricultural businesses can be found in the publication Financing Small-scale and Part-
time Farms.

ASSESSMENT 4

1. Give the meaning of SEED Model and Explain each one by 300 words?
2. Using the Venn diagram, compare and contrast the SEED Model.

References

Kime, L. (2016). Developing a Business Plan - Penn State Extension. Retrieved

from https:/

/extension.psu.edu/developing-a-business-plan

UP Ayala (2006). Basics of Entrepreneurship Module 1.2. Retrieved from

https://docs.google.

com/presentation/d/1Do7ELCnVSNTdNKBkBLlfodzJh7BinHk9a9LFBtJ9Y/html