PROBLEM SOLVING

STRATEGIES
THE ENTREPRENEURS ARE NOT DISCOURAGED WITH THE CONSTRAINTS ALONG THE CAUSES OF
OUR ECONOMIC MALADY. IT SHOULD BE TURNED INTO POSITIVE NOTE, AND NEW SOLUTIONS
MUST BE MADE TO MAKE THEM DIFFERENT FROM OTHER INDIVIDUALS,
BUSINESS OPPORTUNITIES ARE WIDE OPEN FOR PEOPLE WHO WOULD LIKE TO INVEST THEIR
MONEY INTO GAINFUL BUSINESS ACTIVITIES, THEY NEED TO FIND OUT THIS NEW VENTURE THAT
INTERESTS THEM AND HOW THEY CAN HARNESS THEIR TECHNICAL KNOWLEDGE OF THE TRADE.
THE SEARCH FOR BUSINESS OPPORTUNITY SHOULD START WITH THE INDIVIDUAL
ENTREPRENEUR. HE HAS TO FIND OUT THE SKILLS AND TALENT FOR THAT PARTICULAR TYPE OF
BUSINESS ACTIVITY.
 FACTORS TO CONSIDER OF A NEW
ENTREPRENEUR
1. CAUSE YOUR DOUBTER SERVICES, YOU BELIEVE IN THE PROSECUTOR SERVICE THAT YOU WILL AFTER TO YOUR COMES.
2. ANALYZE THE MARKET POTENTIALITIES COPARTNER HUES WILL DETERMINE THE SUCCESS OF YOUR BUSINESS VENTURE
THE LAR THE MARKET POTENTIAL THE MORE CHANCES OF GROWTH AND SUCCESS.
3.DETERMINE THE MARKETING STRATEGY UNIQUE PRODUCT OR SERVICE NEEDS EFFECTIVE DISTRIBUTION STRATEGY TO GET
UNTAMED INTO THE HIDE OF DEMAND POTENTIAL CONTINUOUS SUPPLY DETERMINES PRODUCT GROWTH.
4. KNOW THE COMPETITORS IN LAUNCHING A PRODUCT WITH EXISTING COMPETITORS YOU MUST KNOW THEIR STRENGTHS
AND WEAKNESSES.
5. DO NOT SET ON YOUR LAURELS THE LANDSCAPE OF BUSINESS IS CONTINUOUSLY CHANGING. YOUR INITIAL SUCCESS IN
YOUR BUSINESS ACTIVITIES NEEDS MORE PROACTIVE ANALYSIS FOR EXPANSION AND GROWTH AND OVERCOME POSSIBLE
COMPETITIONS.
 STEPS IN PROBLEM SOLVING

1. IDENTIFY THE
PROBLEM- THE RISK INVOLVED IN THE MANAGEMENT OF THE BUSINESS HAS TO BE IDENTIFIED AND ANALYZED BEFORE
SOLUTIONS COULD BE MADE.
2. GATHER THE DATA THAT BROUGHT THE PROBLEM- GOOD AND INTELLIGENT ENTREPRENEUR MUST BE ABLE TO GET THE DATA THAT
BOROUGHS ABOUT THE PROBLEM.
3. ANALYZING THE DATA- NOT ALL INFORMATION IS RELEVANT TO THE SOLUTION TO THE PROBLEM. SOME DATA MUST BE DISCARDED.
THE DATA MUST FOCUS ON THE PROBLEM AT HAND.
4. FORMULATING ALTERNATIVE SOLUTIONS- THE ENTREPRENEUR MAKES VARIOUS ALTERNATIVE SOLUTIONS TO THE PROBLEM AT HAND.
THESE SOLUTIONS ARE SUBJECT TO A SERIES OF ANALYSIS AND HE MAY NEED OUTSIDE OPINION.
5. SELECTING THE BEST ALTERNATIVES COURSE OF ACTION- AFTER ALL THE ALTERNATIVE COURSES OF ACTION HAD BEEN ANALYZED,
THE ENTREPRENEUR MAKES THE DECISION. THE DECISION HAS TO BE IMPLEMENTED WITH THE LESS POSSIBLE RISKS IN TERMS OF
MONEY, TIME, AND EFFORT.
6. IMPLEMENTING THE BEST ALTERNATIVE - MODERN ENTREPRENEUR UTILIZES GROUP EFFORTS IN SOLVING BUSINESS PROBLEMS.
PROBLEMS AND SOLUTIONS ARE BEST ARRIVED WHEN PEOPLE WHO WILL BE IMPLEMENTING THE DECISIONS ARE PROPERLY CONSULTED
AND THEIR OPINIONS AND IDEAS ARE TAKEN INTO ACCOUNT BEFORE THE FINAL DECISION IS IMPLEMENTED.
 PECULIAR CHARACTERISTICS OF
MANAGERS IN SOLVING PROBLEMS
1. HE DEVELOPS SYSTEMS AND PROCEDURES THAT ARE PRECISE BASED ON CURRENT PRACTICES IN
AN INDUSTRY.
2. THE MANAGER IS INTERESTED IN SOLVING ORIGINATION PROBLEMS RATHER THAN FINDING
OTHER AVENUES IN THE SOLUTION OF THE PROBLEMS.
3. THE MANAGER CALIBRATES IN THE REFINEMENT OF POLICIES AND PROCEDURE AND TENDS TO
REVISE THEM TO SOLVE EXISTING PROBLEMS.
4. HE FINDS WAYS AND MEANS TO PROVIDE SOLUTIONS AND COMPLIANCE TO ROUTINE ACTIVITIES.
5. HE IS INTERESTED IN DETAILS AND SENSITIVE TO GROUP COHESION AND EXTRACT GROUP
COOPERATION AS A MEANS TO GROUP ACCOMPLISHMENTS
 CHARACTERISTICS OF AN INNOVATOR
ENTREPRENEUR IN SOLVING PROBLEMS
1. HE LOOKS AT THE PROBLEM ON DIFFERENT ANGLES AND FINDS MEANS TO CIRCUMVENT THE
SAME.
2. HE DISCOVERS THE ROOTS OF THE PROBLEM AND DEVELOPED AVENUES TO BETTER SOLVE THE
PROBLEM. HE FORMULATES SOLUTIONS AND ALTERNATIVES.
3. HE DEVELOPS BASIC ASSUMPTIONS AND HYPOTHESIS RELATED TO CURRENT PRACTICES AND
MAKES INNOVATIONS BASED ON CAREFUL ANALYSIS THROUGH SWOT.
4. THE INNOVATOR ENTREPRENEUR IS INTERESTED IN THE END RESULTS RATHER THAN THE MEANS
TO ACHIEVE IT. HE HAS LITTLE TOLERANCE FOR DETAILS AND ROUTINE WORK.
5. HE CAPITALIZES ON PEOPLE WITH BRIGHT IDEAS AND TALENTS AND GETS THEIR OPINION AND
CONSENSUS AND WITH LITTLE REGARD FOR PEOPLE WITH MEDIOCRE IDEAS.
 ENVIRONMENTAL SCANNING

THE ENVIRONMENT OF BUSINESS IS VAST WITH OPPORTUNITIES AND THE ENTERPRISE MUST HAVE GREATER LOOK
AT THIS POTENTIAL WELL AS THE CONDITIONS PREVAILING IN THE COMMUNITY.
THE FOLLOWING FACTORS ARE CONTRIBUTORY TO THE DEVELOPMENT OF CUSTOMER SATISFACTION
1. BUSINESS LOCATION FOR SMALL ENTREPRENEURS
RETAIL OUTLET WOULD NEED A SITE THAT IS CONVENIENT TO PROSPECTIVE CUSTOMERS IN TERMS OF PERKING
SPACE OR AVAILABILITY OF TRANSPORTATION.
IN CHOOSING THE LOCATION, THE FOLLOWING FACTORS MUST BE LOOKED INTO BY THE ENTREPRENEUR.
A. RENT AND SPACE- THE COST OF RENT IS A REGULAR MONTHLY EXPENSE AND IT MUST BE SUSTAINED WITH THE
POSSIBLE INCOME THAT WILL BE GENERATED.
B. TERMS OF LEASE AGREEMENT-THE TERM OF LEASE MUST BE STUDIED CAREFULLY AS SOME OWNERS OF SPACE
MIGHT TAKE ADVANTAGE OF LESSEE.
C. TYPE OF GOODS OR MERCHANDISE- A CONVENIENT STORE IS LOCATED WHERE
THERE ARE PEDESTRIANS PASSING BY.
D. INCOME LEVEL OF PROSPECTIVE CUSTOMER -THE TYPE OF PEDESTRIANS AND
THE INCOME LEVEL OF CUSTOMER MUST BE TAKEN IN TO ACCOUNTED.
E. PROSPECTIVE SALES VOLUME -HIGH DENSITY SALES VOLUME NEED TO BE
LOCATED IN SHOPPING AREAS WHERE CUSTOMERS CONVERSE TO BUY ESSENTIAL
GOODS’.
F. MUNICIPAL ON CITY ORDINANCES INCLUDING TAXES AND FEES - THE LOCATION
MUST NOT VIOLATE CITY OR MUNICIPAL ON FINANCES AND THE TAXES AND TEES
MINT BE REASONABLE FOR THE OWNERS OF BUSINESS’.
G. LOCUTION OF THE AREAS - THE AREA MUST BE FREE FROM FLOODS AND OTHER
CALAMITIES THAT WILL ENDANGER THE BUSINESS.
2. LOCATION FOR SMALL INDUSTRIAL PLANT OR MANUFACTURING FACILITIES
ENVIRONMENTAL FACTORS IN LOCATING A MANUFACTURING PLANT OR INDUSTRIAL FACILITIES NEED TO
BE STUDIED CAREFULLY AS PLANT LOCATION IS A GREAT FACTOR IN THE INVESTMENT OF FUNDS AND ITS
PROFITABILITY IN THE LONG RUN.
THE FOLLOWING ARE IMPORTANT FACTORS TO CONSIDER:
A. LAND AREA - THE CONTOUR OF THE LAND, ITS SIZE, AND SHAPE MUST BE SUITABLE TAR THE PLANT SITE.
IT MUST BE FREE FROM FLOODS OR OTHER ENVIRONMENTAL HAZARDS THAT WILL DISTURB OPERATION’S
B. FACILITIES FOR EXPANSION- THE LAND AREA MUST HAVE AMPLE SPACE FOR PLANT EXPANSION AND
PROVISIONS FOR PARKING FACILITIES FOR CUSTOMERS AND EMPLOYEES.
C. POWER AND UTILITIES - AVAILABILITY OF POWER SUPPLY AND THE COST OF ELECTRICITY INVOLVE IN
THE OPERATION ARE GREAT FACTORS IN THE PRODUCTION OF GOODS.
D. BUILDING AND OTHER UTILITIES -THE BUILDING MUST BE WITHIN THE RESTRICTIONS CODE OF THE
MUNICIPALITY OR CITY.
E. PLANT SITE ACCESSIBILITY - THE PLANT SITE MUST BE ACCESSIBLE TO PUBLIC OR SERVICE TRANSPORT
FOR ITS EMPLOYEES AND VALUED CUSTOMERS.
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS (SWOT)
SWOT ANALYSIS IS AN ENTREPRENEURIAL TOOL IN DETERMINING THE OF THE BUSINESS OPERATION.
THE PRODUCT MUST BE EVALUATED ALONG THE FOLLOWING AREAS:
1. PRODUCT STRENGTH IN THE MARKET MUST HAVE THE FOLLOWING:
A. AVAILABLE TECHNOLOGY IN PRODUCT PROCESSING -TECHNOLOGY IS AN IMPORTANT COMPONENT IN
PRODUCING THE PRODUCT AS THE ECONOMIES OF SCALE DETERMINES THE PRICE INDEX.
B. SOURCE OF RAW MATERIALS MUST BE ABUNDANT AND AT LOWER PRICE - THE CONSTANT SUPPLY OF RAW
MATERIALS IS AN IMPORTANT FACTOR IN THE PRODUCTION OF THE PRODUCT.
C. SKILLED WORKERS MUST BE AVAILABLE- TECHNOLOGY MUST HAVE THE COMPONENT OF SKILLED
WORKERS THAT SHALL OPERATE THE MACHINERIES AND OTHER EQUIPMENT.
D. CAPITAL INVESTMENT IN MACHINERY AND OPERATING EXPENDITURES – A STARTING VENTURE MAY HAVE
LITTLE INVESTMENT IN TERMS OF MACHINERY AND EQUIPMENT BUT STARTING WITH SMALL CAPITAL
SHOULD GENERATE PROFITABLE OPERATION.
E. EXPERTISE AND TECHNICAL SKILLS OF THE MANAGEMENT TEAM - A GOOD PRODUCT IS THE MAKING OF
WELL-CONCAVE IDEA OF THE MANAGEMENT TEAM.
2. CHARACTERISTICS OF WEAK PRODUCTS AND WEAK MANAGEMENT.
A. POOR QUALITY AND HIGH PRICE-THE ENTREPRENEUR SHOULD NOT LAUNCH A POOR
PRODUCT THE MARKET AS IT WILL SURELY FAIL TO ADVANCE IN THE SALES AND PROFIT.
B. PRODUCT DESIGN AND APPEAL-PRODUCT DESIGN SHOULD APPEAL TO CUSTOMERS
DEMAND.
C. PRODUCTION COST- PRODUCTION COST IS THE PRICE DEMAND.
D. SUPPLY AND DEMAND -INTERMITTENT SUPPLY TO THE MARKET WILL MAKE CUSTOMERS
SHIFT TO OTHER PRODUCTS.
E. WEAK PRODUCT MANAGEMENT-WEAK MANAGEMENT IS CREATED WHEN PEOPLE IF THE TOP
OF THE ORGANIZATION FAIL TO SUSTAIN A VIGOROUS EFFORT FOR EXPANSION AND GROWTH
WHEN MANAGEMENT SETS ON HIS INITIAL LAURELS AND VENTURED ON VICES AND OTHER
EXTRA ACTIVITIES THAT WILL LOSE HIS TOTAL INVESTMENT.
3. SUSTAINABLE PRODUCT OPPORTUNITIES IN THE MARKET:
A. PRODUCT DEMAND -PRODUCT DEMAND IS THE GREATEST OPPORTUNITY OF AN
ENTREPRENEUR.
B. PRESENCE OF POOR QUALITY IN THE MARKET-THE PRESENCE OF POOR QUALITY PRODUCT IN THE
MARKET PLACE IS AN OPPORTUNITY FOR THE ENTREPRENEUR.
C. GOVERNMENT POLICIES AND SUPPORT - THE GOVERNMENT SUPPORT TO LOCAL ENTREPRENEUR
IS AN OPPORTUNITY FOR GREATER EXPANSION.
D. LIBERAL CREDIT TERMS AND INTEREST RATES - LIBERAL CREDIT TERMS BY BANKS AND OTHER
GOVERNMENT INSTITUTIONS WILL GENERATE EXPANSION FOR THE LOCAL ENTREPRENEURS.
4. TREATS TO PRODUCT PROFITABILITY AND MARKET EXPANSION:
A. ENTRANCE OF COMPETITION- THE ENTRANCE OF MANY COMPETITORS IN THE MARKET PLACE
WILL DEFINITELY GIVE PROBLEM TO ENTREPRENEURS.
B. THE SUPPLY OF RAW MATERIALS WILL BE LIMITED AS OTHER COMPETITORS WILL BE GETTING THE
SAME SUPPLIERS.
C. THE EMERGENCE OF LEFTWING LAB OUR UNIONS -MANY COMPANIES CLOSE SHOPS WITH THE
ADVENT OF LAB OUR UNIONS WITH LEFTIST PHILOSOPHY AS THEY WANT MORE WAGES AND
BENEFITS THAT THE COMPANY NOT GIVE.
D. THE PRESENCE OF DOUBLE TAXATION - THE GOVERNMENT ALREADY IMPOSED A LOT OF TAXES TO THE
ENTREPRENEUR.
E. PEACE AND ORDER IN THE AREA OF BUSINESS OPERATION - PEACE AND ORDER ARE COMPONENTS OF
BUSINESS GROWTH. CRIMINALITY AND KILLINGS WOULD DRIVE AWAY INVESTORS.
F. THE COST OF POWER SUPPLY COST- OF PRODUCTION INCREASES WITH THE COST OF UTILITIES LIKE CURRENT
AND WATER.
THE ENTREPRENEUR SHOULD LOOK DEEPER INTO THE FOLLOWING AREAS:
1. THE MANAGEMENT
TEAM MANAGEMENT BE ABLE TO SET THE DIRECTION OF THE ENTERPRISE WITH A CLEAR MISSION AND VISION
AS THE GUIDING TOOL FOR ITS PLANS AND PROGRAMS. PLANS AND PROGRAMS ARE TENTATIVE ACTIVITIES
THAT WILL MAKE A DEFINITE STEP TOWARDS THE ACCOMPLISHMENTS OF TARGET OBJECTIVES. OBJECTIVES
SET INTO MOTION THE GOALS OF THE ENTERPRISE TO PROFITABILITY.
THE TECHNICAL AND MANPOWER COMPLEMENTS ARE IMPORTANT FACTORS IN THE SUCCESS OF THE BUSINESS.
THE ENTREPRENEUR CANNOT DO THE TASK ALONE AS HE NEEDS PEOPLE WITH THE SAME OUTLOOK AND
PERSEVERANCE AS HE HAS, ESPECIALLY AT THE EARLY STAGE OF THE BUSINESS. THEY MUST WORK HARD,
PERSISTENT AND MUST FOCUS ON THE VISION MISSION OF THE BUSINESS.
MANPOWER COMPLEMENT MAY NEED SOME TRAINING AND INDOCTRINATION OF COMPANY'S OPERATION.
2. THE PRODUCTION PROCESS
PRODUCT SPECIFICATIONS MUST BE MAINTAINED ACCORDING TO PRODUCT STANDARDS THAT ARE
ACCEPTABLE TO CUSTOMERS. PRODUCT QUALITY IS NOW THE NAME OF THE GAME IN BUSINESS.
THE MANAGEMENT MUST LOOK INTO CHEAP AVAILABLE RAW MATERIALS IN THE PRODUCTION OF
GOODS. GOOD QUALITY MATERIALS SHOULD NOT BE SACRIFICED IN TERMS OF PRICE AS POOR
QUALITY WILL AFFECT THE PRODUCTION OF QUALITY PRODUCTS.
FOR SERVICE INDUSTRIES LIKE RESTAURANTS, HOTELS, BEAUTY SALON, BARBER SHOPS OR EVEN
WATER STATIONS, THE CUSTOMERS MUST BE SERVED WITH DIGNITY AND SMILE. FRONT LINE
PRODUCTION CREW MUST HAVE THE PERSONALITY THAT WILL ATTRACT CUSTOMERS. THEY MUST
POSSESS PLEASING PERSONALITY, CLEAN IN LOOKS, AND PROPER ATTIRE.
3. THE MARKETING PROGRAM
THE MARKETING PROGRAM NEEDS DEMAND ANALYSIS FOR THE LAST 5 YEARS AS TO THE MAJOR
USERS OF THE PRODUCT. A NEW PRODUCT WOULD NEED CUSTOMER VIEWPOINT BEFORE IT IS
LAUNCHED INTO THE MARKET. PRODUCT SAMPLES MAY BE NECESSARY AT THE INITIAL STAGE SO
THAT CUSTOMERS' TASTES AND PREFERENCES COULD BE CONSIDERED BEFORE MASS PRODUCTION.
PRODUCT COMPETITIVENESS IS DETERMINED BY QUALITY AND PRICE. A DEMAND AND SUPPLY ANALYSIS
MUST BE CONDUCTED THROUGH MARKETING RESEARCH. MARKETING RESEARCH WILL DETERMINE THE
TRUE PICTURE OF THE MARKET DEMAND AND THE PRODUCT COMPETITORS.
THE GROWTH IN MARKET DEMAND NEEDS CHANNELS OF DISTRIBUTION. THE CHANNELS OF
DISTRIBUTION SHOULD BE MEASURED IN TERMS OF THE CAPABILITY OF THE DISTRIBUTORS TO HANDLE
THE PRODUCT. IT MUST REACH THE CONSUMER AT THE TIME THEY NEED IT AND THE PRICE THAT IS
AFFORDABLE TO THEM.
4. THE FINANCIAL MANAGEMENT
VENTURING INTO A BUSINESS NEEDS FINANCIAL RESOURCES. MONEY IS NEEDED TO FINANCE THE
ACTIVITIES OF BUSINESS. WHATEVER CAPITAL IS AVAILABLE DETERMINES THE KIND OF BUSINESS
OPERATION.
THEN, INTERNAL SOURCE OF CAPITAL WILL COME FROM THE SAVINGS AND ASSETS OF THE STARTING
ENTREPRENEUR.
OTHER SOURCES OF FUNDS ARE PARTNERSHIP AND STOCK OPTIONS. WHILE FUNDS COULD SOURCE FROM
OTHER PEOPLE, THE ENTREPRENEUR MUST LOOK INTO THE CONTROLLING MANAGEMENT OF THE
BUSINESS.
THE IDENTIFICATION OF BUSINESS OPPORTUNITY
THE ENTREPRENEUR'S DESIRE TO ESTABLISH HIS BUSINESS IS A VISIBLE IDEA YET, IT MUST COME INTO A TEST WHETHER IT IS A
VIABLE BUSINESS OPTION. IT NEEDS A CAREFUL ANALYSIS OF OPPORTUNITY EVALUATION.
THE FOLLOWING STOPS STILL HELP THE PROSPECTIVE ENTREPRENEUR EVALUATE THE IDEA BEFORE GOING INTO BUSINESS
1.THE STARTING POINT OF CONCEIVING THE IDEA OF THE TYPE OF BUSINESS
CONCEIVING A NEW PRODUCT IS A PROCESS OF INNOVATION AND WHEN THIS COME INTO A REALITY, THE PRODUCT MUST BE
DIFFERENT FROM AN EXISTING PRODUCT.
THE ENTREPRENEUR MUST FIND A NEW APPROACH TO WIN CUSTOMER ON HIS SIDE IF THE PRODUCT OR SERVICE IS SIMILAR TO
WHAT IS EXISTING IN THE COMMUNITY.
2. THE TECHNICAL FEASIBILITY AND TIME FRAME
AN IDEA IS NOT ONLY CONCENTRATED ON ONE ENTREPRENEUR. THE ENTREPRENEUR MIGHT HAVE CONCEIVED AN IDEA THAT IS
ALSO IN THE MIND OF OTHER PERSON.
THE NEW PRODUCT MUST HAVE ITS TECHNICAL FEASIBILITY AND THE TIME TO LAUNCH THE PRODUCT MUST BE IMMEDIATELY TO
TAKE AHEAD BEFORE OTHERS TAKE THE IDEA.
THE NEW PRODUCT NEEDS TESTING AS TO ITS TECHNICAL CAPABILITY TO SATISFY CUSTOMERS' NEEDS AND WANTS.
IN THE FOOD INDUSTRY, THE GROWING FAST FOOD CHAIN IS CROWDED WITH GROWING SENIOR CITIZENS WHO HAVE MONEY TO
BUY YET THEY HAVE NOT DISCOVERED THEIR NEED FOR HEALTH FOODS WITH LESS CHOLESTEROL.
CAUSES OF BUSINESS FAILURE

1. Business profitability is to provide high benefits to the employees such as profit sharing:
2. Survival from an economic crisis is ability to stay in the industry amidst financial difficulties that cause
closure and bankruptcy of other establishments most particularly the competitors;
3. Incremental sales and share of the market is the introduction of new product lines and design that
expands market share and attract new market segments;
4. Expansion of market area and product lines such as opening of new outlets, branches and attracting new
dealers by offering new product designs and images;
5. Acquisition and ownership of plant machinery and premises in buying or acquiring new plants, factory
and other fixed assets shows success in the industry;
6. Getting a long term business contract with the government or a big business

Success is having avoided the causes of failure which the entrepreneur is supposed to avoid. They are as
follow:

1. Undercapitalization -The entrepreneur must make sure that before the business started, there must
be a contingency fund if in case the expected ROI (Return on Investment) did not operate.
2. POOR BUSINESS LOCATION-THE LOCATION MUST BE STRATEGIC ENOUGH FOR THE SUPPLIERS OF
THE RAW MATERIALS, ACCESSIBLE TO THE CUSTOMERS, CONVENIENCE TO THE FUTURE MARKET.
3. NEGLIGENCE TO PUBLIC POLICY -"IGNORANCE OF THE LAW IN NOT AN EXCUSE" EMPHASIZES
THAT THE BUS AFFECT ORGANIZATION MUST BE AWARE OF THE EXISTING AND PROPOSED LAW THAT
CAN AFFECT THE OPERATION OF THE ENTITY.
4. UNPREPARED TO RISK-THE ENTREPRENEUR MAY NOT BE ABLE TO CONTROL THE MARKET
SITUATION BUT THERE IS SURELY A WAY TO MANAGE THE RISK IN BUSINESS THAT ARISES FROM
FORTUITOUS EVENTS LIKE FIRE, FLOOD, OR THEFT.
5. NO NEW PRODUCT OR SERVICE -THE ENTREPRENEUR MUST BE CREATIVE AND INNOVATIVE TO
PROMOTE NEW PRODUCT DESIGN AND IMAGE.
6. UNSATISFACTORILY PERFORMANCE OF RELATIVES -BLOOD IS THICKER THAN WATER WHEN
WORKERS CONSIDER THEIR EMPLOYMENT BY RELATIVES (EVEN FAMILY MEMBERS) IS A MATTER OF
PRIVILEGE RATHER THAN A DUTY TO BE SINCERE AND PRODUCTIVE.
7. IRREGULAR ATTENDANCE -THE ABSENTEE ENTREPRENEUR WILL NOT BE THERE TO MAKE
CRITICAL DECISION.
IT WOULD BE NICE IF BUSINESS MISTAKES DO NOT COST YOU MONEY, BUT THEY ARE OFTEN TIMES DO. ALWAYS
BE ON GUARD AS MANY OF THESE MISTAKES APPLY TO MOST KINDS OF ENTERPRISES BIG AND SMALL.
• IN THE INITIAL STAGES OF YOUR BUSINESS, MAKE SURE YOU DO NOT OVERSPEND FURNITURE AND
FIXTURES, AND ON MACHINERY EQUIPMENT.
• DEPENDING ON YOUR BUSINESS, A SECOND-HAND FOR PRE-OWNED) EXECUTIVE TABLE WILL LAST AS LONG
AS A BRAND NEW ONE.
• BE CAUTIOUS IN BUYING SECOND HAND MACHINERY AND EQUIPMENT.
• TODAY, DUE TO TECHNICAL ADVANCES, MANY BRAND-NEW MACHINES ARE A BETTER BUY THAN USED
EQUIPMENT.
• MAKE SURE THAT REPLACEMENT OR SPARE PARTS ARE READILY ACCESSIBLE AND THE REPAIR TECHNICIANS
ARE AVAILABLE TO FIX THEM.
• IN MANY INSTANCES, IT IS NOW CHEAPER TO BUY RATHER THAN BUILD YOUR OWN FURNITURE IT IS
CHEAPER TO BUY MONO-BLOC PLASTIC CHAIR THAN TO BUILD ONE USING WOOD.
• BEFORE YOU MAKE A MAJOR PURCHASE, LIKE A XEROX COPIER, THINK THREE TIMES BEFORE YOU SIGN THE
DOTTED LINE OF SALES CONTRACT.
• DO NOT COUNT ON FRIENDS AND RELATIVES AS BUSINESS CLIENTS.
• NEVER BE TOO TRUSTING WITH PEOPLE WHEN IT COMES TO GRANTING, CREDIT.
• SUCCESS IS NOT A MATTER OF LUCK. LUCK CAN ONLY HAPPEN WHEN YOU
PREPARE FOR IT TO HAPPEN.
• HOWEVER, WHEN LUCK DOES COME AND YOU BECOME RICH, BE SURE NOT TO
FALL VICTIM TO THE BIGLANGYAMAN SYNDROME WHERE YOU SPEND ALL YOUR
PROFITS LAVISHLY ONLY TO FIND OUT LATER THAT YOU HAVE LOST EVERYTHING.
• BE A SELF-MOTIVATOR. IN A SOLE PROPRIETORSHIP, NO ONE IS AROUND TO
MOTIVATE YOU. YOU MUST MOTIVATE YOURSELF.
• DO NOT LISTEN TO DOOMSAYERS AND DISPENSERS OF POOR ADVICES.
• GET HELP FROM MENTORS OR A BUSINESS COACH. SUCCESSFUL
BUSINESSPERSONS ARE ALWAYS WILLING TO GIVE YOU A PIECE OF GOOD ADVICE.
• AND NURTURE A FRIENDSHIP. SWEAT IS YOUR EQUITY IN BUSINESS.
• P'ARRETO'S PRINCIPLE OF 80/20: PUT MOST OF YOUR EFFORTS ON THE 20% OF THE THINGS THAT BRINGS 80% OF
THE REVENUES TO YOUR BUSINESS.
• YOU ARE NOT IN BUSINESS UNLESS YOU MAKE A SALE.
• BE READY TO FACE REJECTION.
• DEVELOP A NETWORK OF FRIENDS AND BUSINESS ASSOCIATES TO HELP YOU IN YOUR BUSINESS.
• ALWAYS EXPAND YOUR BUSINESS NETWORK.
• NEVER LOSE SIGHT OF YOUR BUSINESS PLAN.
• REFRAIN FROM ANNOUNCING TO PEOPLE, EVEN FRIENDS AND RELATIVES,
• MAINTAIN YOUR FOCUS.
• CONSIDER A LIFE INSURANCE POLICY FOR YOURSELF TO BENEFIT THOSE SPECIAL PEOPLE YOU WILL BEHIND.
• IN THE SAME BREATH, CONSIDER HEALTH INSURANCE FOR YOU AND YOUR FAMILY.
• QUALITY IS NUMBER ONE AT ALL TIME.
• AS YOUR BUSINESS GROWS, LEARN TO DELEGATE YOUR BACK ROOM OFFICE FUNCTIONS WHILE YOU
CONCENTRATE ON THE INCOME-GENERATING ASPECTS OF THE BUSINESS.
• TEACH YOUR CHILDREN THE BUSINESS.
• SUPPLIERS ARE PARTNERS AND FRIENDS IN YOUR BUSINESS.
• GET OVER GROWING PAINS.
• DO NOT DESPAIR IF YOUR BUSINESS DOES NOT TURNS OUT AS YOU FIRST EXPECTED IT TO BE. WORK HARD AND
PERSEVERE TO OVERCOME THE DIFFICULTIES OF A START-UP VENTURE.
• KEEP UNNECESSARY EXPENSES TO A MINIMUM OR YOU WILL RUN OUT OF CASH.
• YOU NEED NOT TO GROW EXPONENTIALLY TO SAY THAT YOU ARE SUCCESSFUL.
• SOMETIMES, ELABORATE EXPANSIONS PLANS ARE MADE TO FEEL EGO, AND ARE BASED ON UND BUSINESS
DECISIONS. BE HUMBLE.
• TURN DISADVANTAGES INTO ADVANTAGES.
• EXPECT THE UNEXPECTED.
• TIME WILL COME WHEN YOU WILL BECOME TIRED OF THE BUSINESS.
• SUCCESS BEGETS OTHER SUCCESSES.
• LONG-TERM PLANNING RESULTS IN LONG-TERM BENEFITS FOR YOU.
• CONTINUE TO EDUCATE YOURSELF.
• WHEN TAKING IN A BUSINESS PARTNER, DO NOT THROW CAUTION TO THE WIND.
• IN OUR YOUTH, WE SPEND OUR HEALTH TO GAIN OUR WEALTH.
SIGNS THAT BUSINESS MIGHT FAIL
1. LACK OF EXPERIENCE BY THE ENTREPRENEUR
2. LACK OF CAPITAL
3. POOR LOCATION
4. WRONG OR INACCURATE INVENTORY
5. PERMANENT EQUIPMENT PROBLEMS
6. POOR CREDIT PRACTICES
7. INCREASING PERSONAL EXPENSES
8. PREMATURE EXPANSIONS OF THE OUTLETS
9. BAD ATTITUDE OF THE OWNER OR EMPLOYEES
10. OVERUSE OF RESOURCES
11. POOR COLLECTION
12. LOW SALES IN DAILY OPERATIONS
13. POOR INVENTORY MANAGEMENT
14. COMPETITION (EXTERNAL AND INTERNAL)
15. CRIME (INTERNAL AND EXTERNAL)
TACTICS TO SOLVE BANKRUPTCY
1. MAKE A NEW SWOT ANALYSIS CONSIDERING ALL FACTORS OF PRESENT BUSINESS CONDITION
2. START COLLECTING THE ACCOUNTS RECEIVABLE AND NOTES RECEIVABLES. IN AN IMPENDING BANKRUPTCY, CASH IS
KING.
3. AT THE SAME TOKEN, MINIMIZE CREDIT SALES. GIVE A HIGHER DISCOUNT FOR CASH SALES.
4. BORROW MONEY WHILE YOU ARE STILL IN A GOOD CREDIT STANDING.
5. INCREASE THE PRICES OF TACK ON ADDITIONAL CHARGES MUCH AXE VICE FEES NE HAMMING FEES WHEN
APPROPRIATE
6. MOVE INVENTORY EITHER BY RETURNING THEM TO THE SUPPLIER FOR A REFUND OR SELLING THEM TO THE PUBLIC AT
DEEP DISCOUNTS.
7. MONITOR CASH-ON-HAND ON A DAILY BASIS.
8. DELAY PAYMENTS TO SUPPLIERS AND CREDITORS. OFFER TO PAY THEM OFF WITH YOUR INVENTORY INSTEAD SUCH AS
IN AN EXCHANGE DEAL, LE. GROCERIES FOR EMPLOYEE'S SALARIES IF YOU ARE A GROCERY STORE.
9. RENEGOTIATE CONTRACTS FOR SMALLER AND CHEAPER RENT AREA,
10. MOVE OUT TO A SMALLER AND CHEAPER RENT AREA.
11. INSTITUTE DRASTIC BELT TIGHTENING MEASURES. NO MORE CHRISTMAS PAR-TEE OR A BASKETBALL TOURNAMENT.
12. YOUR PERSONAL EXPENSES
13. OUTSOURCE. GET SOMEONE FROM THE OUTSIDE WHAT YOU DO IN BUSINESS. FOR EXAMPLE, LET SOMEONE
MANUFACTURE YOUR GOODS TO SAVE ON PRODUCTION COST.
14. FIND NEW CLIENTS OR CUSTOMERS TO INCREASE SALES.
15. FIND NEW SALESPEOPLE TO SELL ON PURE COMMISSION BASIS.
16. TO STAVE OFF LAY-OFFS, INSTITUTE A THREE-DAY WORKWEEK. ASK EMPLOYEES TO GO
ON A FORCED LEAVE OR VACATION.
17. TERMINATE UNPRODUCTIVE WORKERS. IF STILL NOT ENOUGH, TERMINATE
UNNECESSARY EMPLOYEES. CONSOLIDATE JOB ITEMS OR DESCRIPTIONS. ASK FOR
VOLUNTARY OVERTIME WITHOUT PAY.
18. GET EVERYONE INVOLVE IN GENERATING SALES, INCLUDING JANITOR. ROBUST SALES
CAN STOP AN IMPEDING BANKRUPTCY.
19. LIQUIDATE OR SELL YOUR OFFICE FURNITURE, FIXTURES, OR EQUIPMENT TO
GENERATE CASH SELL YOUR CAR OR HOUSE OR BOTH.
20. GET PROFESSIONAL HELP, OR AT THE VERY LEAST, ASK A FRIEND TO COUNSEL YOU ON
WHAT TO DO ON NEXT. FRESH EYES CAN SEE WELL THAN DO. PERHAPS, THAT
UNSOLICITED ADVICE IS ALL THAT NEED.
21. FIND A PROSPECTIVE BUYER OF YOUR BUSINESS IN WHOLE OR IN PART, BUT IT IS MUCH
BETTER IF YOU CAN SELL THE WHOLE BUSINESS. THIS WAY YOU WILL FETCH A BETTER
PRICE213AND GET OUT OF THE BUSINESS COMPLETELY OR AT A BEST POSSIBLE POSITION.
22. AS A PLAN B, MAKE PLANS FOR FILING BANKRUPTCY. CONSULT A LAWYER.