ENTREPRENEURSHIP

DBA 2200

TOPIC 7:
DRAW A BUSINESS PLAN FOR
THE COMPANY
 LEARNING OBJECTIVES
• At the end of the lesson, students should be able to:
1. Understand what is financial position.
2. Explain the marketing plan of new business.
3. Discuss the incorporate multiple channels into their marketing
plans.
 7.1 FINANCIAL POSITION

• The status of the assets, liabilities, and owners' equity of an organization,

as reflected in its financial statements.
• If you borrow money from a bank, you have to list the value of all your
significant assets, as well as all your significant liabilities. Your bank uses
this information to assess the strength of your financial position; it looks
at the quality of the assets, such as your car and your house, and places
a conservative valuation upon them. The bank also ensures that all
liabilities, such as mortgage and credit card debt, are properly
disclosed and fully valued. The total value of all assets less the total
value of all liabilities gives your net worth, or equity.
 Asset Liability
• A resource with economic value that
• A company's legal debts or
an individual, corporation or
country owns or controls with the obligations that arise during the
expectation that it will provide course of business operations.
future benefit. Liabilities are settled over time
• Assets are bought to increase the through the transfer of economic
value of a firm or benefit the firm's benefits including money, goods
operations.
or services.
• You can think of an asset as
something that can generate cash
flow, regardless of whether it's a
company's manufacturing
equipment or an individual's rental
apartment.
 Shareholders' equity
• The first and original source is the
money that was originally
invested in the company, along
with any additional investments
made thereafter.
• The second comes from retained
earnings which the company is
able to accumulate over time
through its operations. In most
cases, the retained earnings
portion is the largest
• Provide information on how well the company can meet its obligations
and how the obligations are leveraged.

• This can give investors an idea of how financially stable the company is
and how the company finances itself. Activity ratios focus mainly on
current accounts to show how well the company manages its operating
cycle (which include receivables, inventory and payables). These ratios
can provide insight into the company's operational efficiency.
 7.2 MARKETING

• Marketing is the way companies interact with consumers to create

relationships that are beneficial to both parties. Businesses use marketing
to identify their audience before advertising to them. Today, this is most
visible through social media interactions and contests.
 MARKETING PLAN
• Group of customers that has a similar need
for a product or service, money to purchase
the product or service, and willingness and
Target market ability to buy it.

• Designing, developing, maintaining, improving,

Product/Service and acquiring products and services that meet
consumer needs.
Management

• Positioning is the image of your product or

service that you create in the mind of your target
market. Your goal is to create an image that’s
Market Positioning unique, differentiated, and definable in the mind
of your customers.
 • Setting and communicating the value of products
and services. Setting the price at the right level.

Pricing

• Determining the best ways for customers to

locate, obtain, and use the products and services
of an organization. Involves moving the product

Distribution each step from the deign idea to the consumer.

• Communicating with customers about the product

to achieve the desired result--customer demand
for and purchase of the product.

Promotion • advertising, personal selling, publicity, and

public relations.
 INCORPORATE MULTIPLE CHANNELS
INTO THEIR MARKETING PLANS
• Social media marketing
• Businesses that have yet to realize the opportunities that Facebook, twitter,
google+, LinkedIn and other networks provide them are missing out.
• The process does not need to be a challenge, as more services and
companies are popping up more and more frequently.
• Email marketing
• Though email marketing may not be as new of a concept as social media
marketing, it is an effective and popular choice for many small business
owners.
• Companies can implement email-marketing techniques in a number of ways,
including newsletters, promotional campaigns and transactional emails.

• Mobile marketing
• The popularity of smartphones and tablets has helped to change the way
companies target their customers.
• Since many consumers have a mobile device with them at all times, texts
and push notifications will almost certainly be seen by the recipient.
THE END