Entrepreneurship

Entrepreneurship
Duong Cong Doanh, PhD

Lecturer
Duong Cong Doanh, PhD
Email: doanhdc@neu.edu.vn
Faculty of Business Management

Buiding A1, Room 1008, NEU
TEXTBOOK
Entrepreneurship
Successfully Launching
New Ventures
Fifth Edition
EVALUATION
10% 50% Individual participation

Group Work
Individual test
20% 20% Final examination

REWARD &
PUNISHMENT
Reward Punishment
Giving an idea Private talk

Asking an question Using the phone
during class hours
Answering an question
Comments
Doing homework
Structure of the subject
Chapter 5
Chapter 4 Writing a
Business Plan
Chapter 3 Developing an
Effective
Chapter 2 Feasibility Business Model
Analysis
Chapter 1 Recognizing
Opportunities
Introduction to and Generating
Entrepreneurship Ideas
Chapter 1
Introduction to Entrepreneurship
Question 1 Question 2
Question 5
PURE FIX CYCLES

OPENING PROFILE
Structure of chapter 1
What is Entrepreneurship
Types of Start-Up firms
and Why is it important?
Why do people become Changing demographics of

Entrepreneurs Entrepreneurs
Chapter
Characteristics of 1 The positive effects of
Entrepreneurship and
successful Entrepreneurs Entrepreneurial firms
Common myths about
The Entrepreneurial process
Entrepreneurs
Introduction
In recent years, the startup movement in Vietnam

is growing and developing. According to statistics
from the Department of Business Registration
(Ministry of Planning and Investment), in the
period 2016 - 2019, each year, Vietnam has more
than 126,000 newly established enterprises (DN),
an increase of 1.6 times. Compared to the period
2011-2015, Vietnam currently has more than
3,000 innovative start-ups (DNKNs)
1.1. What is Entrepreneurship and Why is it important?
WHAT WHY
The process by which individuals

pursue opportunities without “The art of turning
regard to resources they currently an idea into a business”
control for the purpose of
exploiting future goods and
services.
1.2. Why do people become Entrepreneurs
An entrepreneur is an
Pursue individual who creates a new
business, bearing most of the
their own risks and enjoying most of the
ideas rewards.
Pursue
Be their
Financial
own boss
Rewards
Many entrepreneurs want to be their

own boss because either they have had a
long-time ambition to own their own firm
or because they have become frustrated
working in traditional jobs.
Be their
own boss
Pursue
their own
ideas
Some people are naturally alert, and when they recognize

ideas for new products or services, they have a desire to see
those ideas realized. Corporate entrepreneurs who innovate
within the context of an existing firm typically have a
mechanism for their ideas to become known.
This motivation, however, is typically

secondary to the first two and often
fails to live up to its hype. The average
entrepreneur does not make more
money than someone with a similar
amount of responsibility in a traditional Pursue
job.
Financial
Rewards
1.3. Characteristics of successful Entrepreneurs
Passon for the business
Product/Customer focus
Execution intelligence
Tenacity despite failure

1.4. Common myths about Entrepreneurs
01 02 03 04 05
Entrepreneurs Entrepreneurs Entrepreneurs Entrepreneurs Entrepreneurs

are born, not are gamblers are motivated should be love the
made primarily by young and spotlightt
money energetic
1.5. Types of Start-Up firms
Firms that basically provide their owners a

Salary- similar level of income to what they would
substitute firms be able to earn in a conventional job.
Firms that provide their owner or owners

Lifestyle firms the opportunity to pursue a particular
Types lifestyle, and make a living at it.
Firms that bring new products and services

Entrepreneurial firms to the market by creating and seizing
opportunities regardless of the resources
they currently control.
1.6. Types of Start-Up firms
While men are still more

There has been a substantial
likely to start businesses
increase in minority
than women, the number
entrepreneurs in the United
of women-owned
States.
businesses is increasing.
The number of seniors

(those 50 years of age and
A desire to pursue an older) starting businesses is
entrepreneurial career is high substantial and growing.
among young people.
1.7. The positive effects of entrepreneurship and
entrepreneurial firms
Economic
impact of
entrepreneurial
firms
Entrepreneurial
firms’ impact on
Entrepreneurial larger firms
firms’ impact on
society
1.8. The entrepreneurial process
Developing Managing and

successful growing the
business ideas entrepreneurial
firm
1 2 3 4
Deciding to Moving from

become an an idea to an
entrepreneur entrepreneurial
firm
THANK YOU
Chapter 2
Recognizing opportunities and
generating ideas
Question 5
I C R A C K E D
OPENING PROFILE
The differences between

1 opportunities and ideas
Three ways to identify

2 opportunities
Personal characteristics of
3 the Entrepreneur
Techniques for generating

4 ideas
Encouraging the development of

5 new ideas
2.1. The differences between opportunities and ideas
An opportunity is a favorable set of

circumstances that creates a need for a The term window of An idea is a thought, an
new product, service, or business. opportunity is a impression, or a notion. An
metaphor describing idea may or may not meet the
An entrepreneur recognizes a problem or an the time period in which criteria of an opportunity.
opportunity gap and creates a business to a firm can realistically
address the problem or fill the identified gap. enter a new market.
S c i e n c e T e c h n o l o g y E n g i n e e r i n g A r t s M a t h e m a t i c s
2.1. The differences between opportunities and ideas
Attractive Timely
Opportunity
(rather than just an idea)
Anchored in a product,
service, or business
Your Text Here that creates or adds
Durable You can simply impress your value for its buyer or
audience and add a unique zing and
appeal to your Presentations. Get a end user
modern PowerPoint Presentation
that is beautifully designed.
Four essential qualitites of an opportunity

2.2. Three ways to identify opportunities
Finding gaps in the

Observing trends Solving a problem
marketplace
Three ways to identify an opportunity

▪ The first approach to identifying opportunities is

to observe trends and study how they create
opportunities for entrepreneurs to pursue.
▪ The most important trends to follow are

Observing trends economic trends, social trends,
technological advances, and political action
andYour Text Here
regulatory changes.
You can simply impress your
▪ Distinguish between trends and fads.
appeal to your Presentations. Get a
Economic Forces
State of the economy
Level of disposable income
Consumer spending patterns
Social Forces
Social and cultural trends
Demographic changes Business, Product,
What people think is “in” or Service
New Business,
Opportunity Gap Product, and
Technological Advances Difference between Service Ideas
New technologies what’s available and
Emerging technologies what’s possible
Your Text Here
New uses of old technologies You can simply impress your
Political and modern PowerPoint Presentation
Regulatory Changes
New changes in political arena Environmental trends suggesting business
New laws and regulations
or product opportunity gaps
▪ The second approach to identifying

opportunities is to recognize problems and find
ways to solve them.
Solving a problem
▪ Problems can be recognized by observing the
challenges that people encounter in their daily
Your Text Here
lives and through more simple means, such as
intuition, serendipity, or chance.
▪ There are many examples of products

that consumers need or want that aren’t
available in a particular location or aren’t
available at all.
Finding gaps in the
marketplace ▪ Product gaps in the marketplace
represent potentially viable business
opportunities.
Your Text Here
2.3. Personal characteristics of the entrepreneur
Prior experience Cognitive factors
1
Personal
characteristic
Creativity Social networks

▪ Prior experience in an industry helps Prior experience
1
entrepreneurs recognize business
opportunities.
▪ Although prior experience is important in
an industry in most instances, there is
anecdotal evidence suggesting that people
outside an industry can sometimes enter it
with a new set of eyes, and as a result
innovate in ways that people with prior
experience might find difficult.
▪ Opportunity recognition may be an innate

Social networks
skill or a cognitive process.
▪ There are some who think that
entrepreneurs have a “sixth sense” that
allows them to see opportunities that
others miss.
▪ This sixth sense is called entrepreneurial
alertness, which is formally defined as the
ability to notice things without engaging in
deliberate search.
▪ The extent and depth of an

individual’s social network affects
opportunity recognition.
▪ People who build a substantial
network of social and professional
contacts will be exposed to more
opportunities and ideas than people
with sparse networks.
▪ This exposure can lead to new
business starts.
▪ Solo entrepreneurs, network
Social networks
entrepreneurs, strong-tie
relationships, weak-tie relationship.
▪ Creativity is the process of generating a

novel or useful idea. Opportunity
recognition may be, at least in part, a
1
creative process.
▪ For an individual, the creative process can
be broken into five stages: preparation,
incubation, insight, evaluation,
elaboration.
Creativity
Environmental trends
Economic factors
Social factors
Technological advances
Political and regulatory changes
Business, Product, or
New Business,
Service Opportunity Gap
Product, and
Difference between what’s
Service Ideas
Personal characteristics of available and what’s possible
an entrepreneur
Prior experience
Cognitive factors
Social networks
Creativity The opportunity recognition process
2.4. Techniques for generating ideas
1 2 3 4
Brainstorming Focus groups Library and Other

Internet techniques
research
1 ▪ Brainstorming is simply the process of

generating several ideas about a specific
topic.
▪ In a formal brainstorming session, the
Brainstorming leader of the group asks the participants to
share their ideas. One person shares an
idea, another person reacts to it, another
person reacts to the reaction, and so on.
▪ A focus group is a gathering of 5 to 10

2 people who are selected because of their
relationship to the issue being discussed.
▪ Focus groups are used for a variety of
purposes, including the generation of new
business ideas.
Focus groups ▪ Focus groups typically involve a group of
people who are familiar with a topic, are
brought together to respond to questions,
and shed light on an issue through the give-
and-take nature of a group discussion.
▪ Libraries are often an underutilized source of

information for generating business ideas. The best
3 approach to utilizing a library is to discuss your
general area of interest with a reference librarian,
who can point out useful resources, such as
industry-specific magazines, trade journals, and
Library and industry reports.
Internet ▪ Internet research is also important. If you are
research starting from scratch, simply typing “new business
ideas” into Google or Bing will produce links to
newspaper and magazine articles about the
“hottest” and “latest” new business ideas.
▪ Some companies set up customer advisory

4 boards that meet regularly to discuss needs,
wants, and problems that may lead to new ideas.
▪ Other companies conduct varying forms of
anthropological research, such as day-in-the-life
Other research.
techniques
2.5. Encouraging the development of new ideas
Establishing a focal point

for ideas
1
2
Encouraging creativity at the
firm level
THANK YOU
Chapter 3
Feasibility analysis
Question 5
L U M I N A I D
OPENING PROFILE
Organizational
feasibility analysis
Product/Service Financial feasibility

2 5 analysis
feasibility analysis
Industry/Target
market feasibility A feasibility analysis
analysis template
3.1. Feasibility analysis
Feasibility analysis is the process of determining if
a business idea is viable. A feasibility analysis is an
assessment of a potential business rather than
strictly a product or service idea.
Conducting a feasibility analysis
Product/service feasibility, industry/target

market feasibility, organizational feasibility, and
financial feasibility.
Product/Service
feasibility
Yes in all Proceed in
four areas business plan
Spending the time Industry/Target

and resources market feasibility
Proposed
necessary to move
business
forward with the
venture
business idea Organizational
depends on … feasibility
No in one or Drop or rethink
more areas business idea
Financial
feasibility
Role of feasibility analysis in developing successful business ideas

▪ Primary research is research that is

collected by the person or persons
completing the analysis. It normally
includes talking to prospective
customers, getting feedback from
industry experts, conducting focus
groups, and administering surveys.
▪ Secondary research probes data
that is already collected. The data
generally includes industry studies,
Census Bureau data, analyst
forecasts, and other pertinent
information gleaned through library
and Internet research.
3.2. Product/Service feasibility analysis
Product/Service desirability Product/Service demand
The first component of product/service The second component of product/service

feasibility is to affirm that the proposed feasibility analysis is to determine if
product or service is desirable and serves a there is demand for the product or
need in the marketplace. service.
Product/Service desirability
Does it make sense? Is it reasonable?

1 Is it something real customers will
buy?
Does it take advantage of an

2 environmental trend, solve a problem,
or fill a gap in the marketplace?
Is this a good time to introduce the

3
product or service to the market?
Are there any fatal flaws in the product

4
or service’s basic design or concept?
3.2. Product/Service feasibility analysis
Product/Service demand
Talking face-to-face with potential
customers
1
Utilizing online tools, such as Google
Adwords and landing pages, to
assess demand
3 2
Library, Internet and Gumshoe

research
3.3. Industry/Target market feasibility analysis
▪ Industry/target market feasibility is an

assessment of the overall appeal of
the industry and the target market for the
product or service being proposed.
▪ An industry is a group of firms producing a
similar product or service, such as computers,
children’s toys, airplanes, or social networks.
▪ A firm’s target market is the limited portion of
the industry that it goes after or to which it
wants to appeal.
Industry Attractiveness
▪ Industries vary in terms of their overall

attractiveness.
▪ Some industries are characterized by such
high barriers to entry or the presence of
one or two dominant players that potential
new entrants are essentially shut out.
Characteristics of attractive industries
▪ Are young rather than old

▪ Are early rather than late in their life cycle
▪ Are fragmented rather than concentrated
▪ Are growing rather than shrinking
▪ Are selling products or services that customers
“must have” rather than “want to have”
▪ Are not crowded
▪ Have high rather than low operating margins
▪ Are not highly dependent on the historically low
price of a key raw material, like gasoline or flour, to
remain profitable
Target market attractiveness
▪ A target market is a place within a larger market segment
that represents a narrower group of customers with similar
needs.
▪ By focusing on a smaller target market, a firm can usually
avoid head-to-head competition with industry leaders and can
focus on serving a specialized market very well. It’s also not
realistic, in most cases, for a start-up to introduce a
completely original product idea into a completely new
market.
3.4. Organizational feasibility analysis
Organizational
feasibility analysis is
conducted to
determine whether a
proposed business
has sufficient Management prowess
management 01
expertise,
organizational A proposed business should
Resource sufficiency
competence, and evaluate the prowess, or ability,
of its initial management team,
02
resources to
successfully launch. whether it is a sole The focus in organizational
There are two primary entrepreneur or a larger group. feasibility analysis is on
issues nonfinancial resources. The
to consider in this objective is to identify the
area: management most important nonfinancial
prowess and resource resources and assess their
sufficiency availability.
3.5. Financial feasibility analysis
▪ Financial feasibility analysis is

1 Total Start-Up Cash Needed
the final component of a
comprehensive feasibility analysis.
▪ The most important issues to
consider at this stage are total
Financial performance of
start-up cash needed, financial 2 similar businesses
performance of similar businesses,
and the overall financial
attractiveness of the proposed
venture.
Overall financial
3 attractiveness of the
proposed venture
Total Start-Up Cash Needed
▪ An actual budget should be

prepared that lists all the
anticipated capital purchases
and operating expenses
needed to get the business up
and running.
▪ After determining a total figure,
an explanation of where the
money will come from should
be provided.
Financial performance of
similar businesses
▪ The second component of financial
feasibility analysis is estimating a
proposed start-up’s potential financial
performance by comparing it to similar,
already established businesses.
▪ There are several ways of doing this,
all of which involve a little gumshoe
labor: substantial archival data, asking
the owner or manager of the business
(isn’t likely to be a direct competitor) to
share sales and income data, simple
observation and legwork.
Overall financial attractiveness
of the proposed venture
▪ A new venture’s projected sales

and rate of return.
3.6. A feasibility analysis template
▪ First Screen, shown in Appendix 3.1,

is a template entrepreneurial firms
use to complete a feasibility analysis.
▪ It is called First Screen because a

feasibility analysis is an
entrepreneur’s (or a group of
entrepreneurs’) initial pass at
determining the feasibility of a
business idea.
THANK YOU
Chapter 4
Developing an effective
business model
Question 5
HER CAMPUS MEDIA

OPENING PROFILE
Business models and
1 their importance
General categories of
2 business models
The barringer/Ireland
3 business model
template
4.1. Business models and their importance
Preparation of
the business model
Fleshing out
the operational details of
the company
Initial validation of the business idea
Proper time to determine a company’s business model

4.1. Business models and their importance
▪ A firm’s business model represents the

core aspects of its business.
▪ It also describes how the core aspects fit

together and support one another.
▪ For example, three important elements of a

firm’s business model are its target market,
its basis for differentiation and its key
assets.
4.2. General categories of business models
Disruptive business model

New market disruption
Low-end market disruption
Standard business model

▪ Standard business
Disruptive model depict
business modelexisting
plans or recipes firms can use to determine
Newcreate,
how they will marketdeliver
disruption
and capture
value for Low-end market disruption
their stakeholders.
▪ Most of the standard business models, with

the exception of the freemium model, have
been in place for some time.
▪ In fact, many of the business models

Standard business model utilized by online firms were originally
developed by offline firms, and simply
transferred to the Internet
▪ Disruptive business model, which are Disruptive business model

rare, are ones that do not fit the profile of a
New market disruption
standard business model, and are
Low-end market disruption
impactful enough that they disrupt or
change the way business is conducted in a
industry or an important niche within an
industry.
▪ Two types of disruptive business model:

new market disruption and low-end market
disruption.
4.3. The Barringer/Ireland business model template
Core Strategy Resources

Business mission Core competencies
Basis of differentiation Key assets
Target market
Product/market scope
Business Model
Operations Financials
Product/Service production Revenue streams
Channels Cost Structure
Key Partner Financing/Funding
A business’s mission or mission statement

describes why it exists and what its business model is
supposed to accomplish. There are several rules of
Core strategy thumb for writing mission statements. A business’s
mission statement should:
▪ Define its “reason for being”
▪ Describe what makes the company different
Business mission ▪ Be risky and challenging but achievable
▪ Use a tone that represents the company’s culture
and values
▪ Convey passion and stick in the mind of the reader
▪ Be honest and not claim to be something that the
company “isn’t”
▪ It’s important that a business clearly articulate

the points that differentiate its product or service
from competitors.
Core strategy ▪ This is akin to what some authors refer to as a
company’s value proposition.
▪ A company’s basis of differentiation is what
Basis of differentiation causes consumers to pick one company’s products

over another’s.
▪ It is what solves a problem or satisfies a customer
need.
▪ A company’s product/market scope defines the

products and markets on which it will concentrate.
Core strategy ▪ Most firms start narrow and pursue adjacent
product and market opportunities as the company
grows and becomes financially secure.
▪ New firms typically do not have the resources to
Product/market scope produce multiple products and pursue multiple
markets simultaneously.
▪ A core competency is a specific factor or

capability that supports a firm’s business model
and sets it apart from its rivals.
▪ A core competency can take on various forms,
such as technical know-how, an efficient process, a
Add Text
trusting relationship with customers, expertise in
Simple PowerPoint
Resources product design, and so forth. Presentation
▪ It may also include factors such as passion for a
business idea and a high level of employee morale.
Core ▪ A firm’s core competencies largely determine what
competencies it can do.
▪ Key assets are the assets that a firm owns that
enable its business model to work.
▪ The assets can be physical, financial, intellectual,
or human.
✓ Physical assets include physical space, equipment,
vehicles, and distribution networks.
✓ Intellectual assets include resources
Add Text such as
Simple PowerPoint
Resources patents, trademarks, copyrights,Presentation
and trade secrets,
along with a company’s brand and its reputation.
✓ Financial assets include cash, lines of credit, and
Key assets commitments from investors.
✓ Human assets include a company’s founder or
founders, its key employees, and its advisors.
▪ A firm’s revenue streams describe the ways in

Financials which it makes money.
▪ Some businesses have a single revenue stream,
while others have several.
Revenue streams
Financials
Most common revenue streams

▪ A business’s cost structure describes the most
important costs incurred to support its business
model.
▪ Generally, the goal of cost structure in a firm’s
Financials business model template is threefold: identify
whether the business is a cost-driven or value-
driven business, identify the nature of the
business’s costs, and identify the business’s major
Cost structure cost categories.
▪ Most businesses have a mainly fixed-cost or variable-
cost structure.
✓ Fixed costs are costs that remain the same despite the
volume of goods or services provided.
✓ Variable costs vary proportionally with the volume of
goods or services produced.
▪ Many business models rely on a certain amount of

financing or funding to bring their business model
Financials to life.
▪ Some entrepreneurs are able to draw from
personal resources to fund their business.
Financing/Funding
▪ This section focuses on how a firm’s products

and/or service are produced.
▪ If a firm sells physical products, the products can
be manufactured or produced in-house, by a
contract manufacturer, or via Add
an Text
outsource
Simple PowerPoint
Operations provider. Presentation
▪ If a firm is providing a service rather than a
physical product, a brief description of how the
Product/Service service will be produced should be provided.
Production
▪ A company’s channels describe how it delivers its

product or service to its customers.
▪ Businesses sell direct, through intermediaries, or
through a combination of both. Add Text
Simple PowerPoint
Operations Presentation
Channels
▪ A supplier (or vendor) is a company that provides

parts or services to another company.
▪ Along with suppliers, firms partner with other
companies to make their business models
Add Text work.
Simple PowerPoint
The most common types of relationships, which
Operations Presentation
include strategic alliances and joint ventures.
Key partners
THANK YOU
Chapter 5
Writing a business plan
Question 5
T E M P O R N
OPENING PROFILE
Outline of
the business Presenting
plan the business
plan to
investors
The
business Who reads
plan the business
plan – and
Guidelines
what are they
for writing a
looking for
business
plan
What is a business plan?
▪ A business plan is a written narrative, typically 25 to 35
pages long, that describes what a new business intends
to accomplish and how it intends to accomplish it.
▪ For most new ventures, the business plan is a dual-
purpose document that is used both inside and outside
the firm.
✓ Inside the firm, the plan helps the company develop a
“road map” to follow to execute its strategies and plans.
✓ Outside the firm, it introduces potential investors and
other stakeholders to the business opportunity the firm is
pursuing and how it plans to pursue it.
5.1. The business plan
The reasons for writing a business plan
External reason
Communicates the merits of
a new venture to outsiders,
such as investors and bankers
Internal reason
Forces the founding team to systematically
think through every aspect of its new venture
5.2. Who reads the business plan and what are they looking for
Investors and other

A firm’s employees external stakeholders
A clearly written business plan, one that External stakeholders who are being
articulates the vision and future plans of recruited to join a firm, such as investors,
a firm, is important for both the potential business partners, and key
employees, are the second audience
management team and the rank-and-file
for a business plan.
employees.
5.3. Guidelines for writing a business plan
1
Structure of
the business
plan Summary plan
2 Content of
the business
plan
Full business plan
Operational business plan

▪ It is important to remember that a firm’s

business plan is typically the first aspect of
1 a proposed venture that an investor will
Structure of
the business see.
plan ▪ To make the best impression, a business
plan should follow a conventional
structure, such as the outline shown in the
next section.
The business plan should give clear and concise

information on all the important aspects of the proposed
new venture. It must be long enough to provide sufficient
information, yet short enough to maintain reader interest.
After a business plan is

2 completed, it should be
Content
reviewed for spelling, grammar,
of the and to make sure that no
business critical information has been
plan omitted.
Full business plan 2

Content
of the
business
2 plan
Operational
Summary plan 1 3
business plan
Style or Format of the business plan
10 – 15 pages 25 – 35 pages 40 – 100 pages

Work best for new Work best for new Is meant primarily for
ventures in the early ventures that are at the an internal audience;
Operational business plan

works best as a tool for
stages of development point where they need
creating a blueprint for
that want to “test the funding or financing;
Full business plan
a new venture’s
waters” to see if serves as a “blueprint”
Summary plan
operations and
investors are interested for the company’s providing guidance to
in their idea. operations. operational managers.
Recognizing the elements of the plan may change
▪ A final guideline for writing a business plan is to

recognize that the plan will usually change as it
is being written and as the business evolves.
▪ New insights invariably emerge when
entrepreneurs immerse themselves in writing
the plan and start getting feedback from others.
▪ This process continues throughout the life of a
company, and it behooves entrepreneurs to
remain alert and open to new insights and
ideas.
5.4. Outline of the business plan
Business
plan
outline
Cover page and table of contents
The cover page should include the

company’s name, address, and phone number;
the date; the contact information for the lead
entrepreneur; and the company’s website address
if it has one.
Executive summary
The executive summary is a short overview of the

entire business plan; it provides a busy reader with
everything she needs to know about the new
venture’s distinctive nature.
Industry analysis
▪ The main body of the business plan begins by

describing the industry in which the firm intends
to compete.
▪ This description should include data and
information about various characteristics of the
industry, such as its size, growth rate, and sales
projections.
Company description
▪ This section begins with a general description of

the company. It is extremely important in that it
demonstrates to your reader that you know how
to translate an idea into a business.
▪ The company history section should be brief,
but should explain where the idea for the
company came from and the driving force
behind its inception. If the story of where the
idea for the company came from is heartfelt, tell
it.
Tagline Company description
is a
phrase that a
A product
business plans
or service’s position
to use to
reinforce its is how it is
position in the situated relative
marketplace. to its rivals.
Mission statement The products and A milestone

defines why a service section
is a
company include an noteworthy or
exists and explanation of significant
what it aspires your event.
to become product or
service
The market analysis breaks the industry into

segments and zeroes in on the specific segment
01 (or target market) to which the firm will try to
appeal.
It’s important to include a section in the market

02 analysis that deals directly with the behavior of
the consumers in a firm’s target market.
A competitor analysis, which is a detailed

03 analysis of a firm’s competitors, should be
included.
04 The final section of the market analysis estimates

a firm’s annual sales and market share.
The economies of the business
▪ This section begins the financial analysis of a

business, which is further fleshed out in the
financial projections.
▪ It addresses the basic logic of how profits are
earned in the business and how many units of a
business’s product or service must be sold for
the business to “break even” and then start
earning a profit.
Marketing plan
▪ The marketing plan focuses on how the

business will market and sell its product or
service. It deals with the nuts and bolts of
marketing in terms of price, promotion,
distribution, and sales.
▪ The best way to describe a company’s
marketing plan is to start by articulating its
marketing strategy, positioning, and points of
differentiation, and then talk about how these
overall aspects of the plan will be supported by
price, promotional mix and sales process, and
distribution strategy.
Product (or service) design and development plan
▪ The first issue to address is to describe the

present stage of the development of your
product or service.
▪ A final section should describe any patents,
trademarks, copyrights, or trade secrets that you
have secured or plan to secure relative to the
products or services you are developing.
Operational plan
▪ The operations plan section of the business

plan outlines how your business will be run and
how your product or service will be produced.
▪ The next section of the operations plan should
describe the geographic location of your
business.
▪ This section should also describe a firm’s
facilities and equipment.
Management team and company structure
▪ Many investors and others who read business

plans look first at the executive summary and
then go directly to the management team
section to assess the strength of the people
starting the firm.
▪ The management team of a new firm typically
consists of the founder or founders and a
handful of key management personnel. A brief
profile of each member of the management
team should be provided, starting with the
founder or founders of the firm.
Overall schedule
▪ A schedule should be prepared that shows the

major events required to launch the business.
▪ The schedule should be in the format of
milestones critical to the business’s success.
Financial projections
▪ The final section of a business plan presents a

firm’s pro forma (or projected) financial
projections.
▪ The first thing to include is a sources and uses
of funds statement.
▪ The next item to include is an assumptions
sheet.
▪ The pro forma (or projected) financial
statements are the heart of the financial
section of a business plan.
• Appendix
• Putting it all together
5.5. Presenting the business plan to investors
The Oral Questions and

presentation of a feedback to expect
business plan from investors
1 2
The Oral ▪ The founders of a new venture should prepare a

presentation of a set of PowerPoint slides that will fill the time slot
allowed for the presentation portion of the
business plan
meeting.
▪ If an investor tells an entrepreneur that he or she
has one hour and that the hour will consist of a
20-minute presentation and a 40-minute
question-and-answer period.
1 ▪ The presentation should be 2 smooth and well-
rehearsed. The slides should be sharp and not
cluttered with material.
Questions and
▪ Whether in the initial meeting or on subsequent
occasions, an entrepreneur will be asked a host
feedback to expect
of questions by potential investors. from investors
▪ In fact, an investor who is able to identify
weaknesses in a business plan or presentation
does a favor for the entrepreneur.
1 2
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Entrepreneurship

Duong Cong Doanh, PhD

Faculty of Business Management

10% 50% Individual participation

20% 20% Final examination

Giving an idea Private talk

PURE FIX CYCLES

Why do people become Changing demographics of

In recent years, the startup movement in Vietnam

The process by which individuals

Many entrepreneurs want to be their

Some people are naturally alert, and when they recognize

This motivation, however, is typically

Passon for the business

Tenacity despite failure

Entrepreneurs Entrepreneurs Entrepreneurs Entrepreneurs Entrepreneurs

Firms that basically provide their owners a

Firms that provide their owner or owners

Firms that bring new products and services

While men are still more

The number of seniors

Developing Managing and

Deciding to Moving from

The differences between

Three ways to identify

Techniques for generating

Encouraging the development of

An opportunity is a favorable set of

Four essential qualitites of an opportunity

Finding gaps in the

Three ways to identify an opportunity

▪ The first approach to identifying opportunities is

▪ The most important trends to follow are

▪ The second approach to identifying

▪ There are many examples of products

Prior experience Cognitive factors

Creativity Social networks

▪ Prior experience in an industry helps Prior experience

▪ Opportunity recognition may be an innate

▪ The extent and depth of an

▪ Creativity is the process of generating a

Brainstorming Focus groups Library and Other

1 ▪ Brainstorming is simply the process of

▪ A focus group is a gathering of 5 to 10

▪ Libraries are often an underutilized source of

▪ Some companies set up customer advisory

Establishing a focal point

Product/Service Financial feasibility

Conducting a feasibility analysis

Product/service feasibility, industry/target

Spending the time Industry/Target

Role of feasibility analysis in developing successful business ideas

▪ Primary research is research that is

Product/Service desirability Product/Service demand

The first component of product/service The second component of product/service

Does it make sense? Is it reasonable?

Does it take advantage of an

Is this a good time to introduce the

Are there any fatal flaws in the product

Library, Internet and Gumshoe