([^ Technology and Livelihood Education Textbook £

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The Ideal Entrepreneur

Learning Competencies:

• Identify the sellers

and buyers
• Produce simple
products
• Buy and sell
products based on
needs
• Sell products based
on needs and
demands in school
and community

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1.1 The Buyer and Seller Relations

According to the BusinessDictionary.com, the word Buyer is defined

as "a party which acquires, or agrees to acquire, ownership (in case of
goods), or benefit or usage (in case o f services), in exchange for money or
other consideration under a contract o f sale." On the other hand, Seller is
defined as "a party that makes, offers or contracts to make a sale to an
actual or potential buyer."

In short, a buyer is someone who makes a

purchase while seller is someone who sells
something - this creating a relationship between the
two.

There are three levels of buyer-seller relationship according to Ed

Rigsbee, the author of PartnerShift. These are Adversarial, Barometric and
Complementary.

• Adversarial Relationship - This is the traditional transactional

relationship between the buyer and seller. Here, the buyer works by
persistently asking for every possible discount and deal from the
seller.
• Barometric Relationship - This involves constant monitoring of
relationship (on attitudes and potentials) between the two which

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develops distrust and may eventually end in just a short-length

contract.
• Complementary Relationship - This is the highest level of
relationship where both buyer and seller engage in a true business
partnership because both matched with each other's "vision and
values". Both parties understand each other's needs and work closely
together to achieve their respective goals.

& To be a successful seller, you must consider building relationship to

buyers. This is important specially if you want to have "repeat
sales" from the buyer. Trust is the key factor in this approach.

Besides building a relationship, it takes courage to become an

entrepreneur. Anybody can be an entrepreneur, though. An entrepreneur
buys the raw materials in order to create a product that he would like to
sell. So, an entrepreneur can be both a buyer and a seller.

You can be an entrepreneur, too! Though you are still young, you
can earn extra money by becoming an entrepreneur.

There are two basic ways to earn money. That is -

1. to make or assemble something, which is called a good or product

that others are willing to buy; or
2. to do work, which is called service that others are willing to pay you
to do.

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 IC T a n d E n t r e p r e n e u r s h ip 6

In doing so, you need to consider the following:

• what you enjoy doing,

• what you do well,
• what people needs, and
• what people are willing to buy at a profitable and reasonable price.

• To give you great ideas and tips on how to earn money, you may
visit the following websites:

• http://www.thriftvfun.com/tf437665.tip.html
• http://content.moneyinstructor.com/656/wavs-kids-make-
monev.html
• http://content.monevinstructor.com/664/kids-startinq-business.html

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Activity 1.1
I can be an Entrepreneur!

Let's talk and learn!

Form a group of 3 members. Talk about your common interests and

hobbies. After which, answer the following questions:

1. What do your group enjoy doing?

2. What do each of you do well on that particular work?

3. What business can you create out of the things that you enjoy doing?
Name at least three.

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4. Do you think people need the product or service that these

businesses offer?

5. Do you think people are willing to buy these products or services?

Let's do this!

From the three businesses that you have enumerated, which do

you think is the best that could give you a good start as a 6th grade
entrepreneur? This is in preparation for your Grade Entrepreneur Fair.
Once decided, fill in the forms provided on the next two pages.

Once your business proposal is approved by your teacher, undertake

a market survey in your school by surveying teachers and fellow students
from every grade level to determine if they are interested on the product
or service, and the price they might be willing to pay for it. Record various
responses on the Survey Form provided on the next page. If you get a
positive response from the teachers and students, you may submit the
Survey form and continue with your business. Otherwise, you may have to
revise your business proposal and start again.

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Qr$d<§ Entrepreneur FMr

BUSINESS PROPOSAL
Business Name (Select a very appealing title.):_______________________________

Team Members: ___

What are you offering:

Brief Business Description:

Plot your capital needed for your startup cost:

Resources Unit Cost Quantity Needed Total Cost

Ex. Barbeque stick Php 10.00 2 Php 20.00

Total Estimated Cost: Php

Plot your cash flow:

a) Price per product or service:

b) Number of Products produced or
Services performed during the fair
c) Estimated Cash (a x b):
d) Break Even Point (total estimated
cost divided by price):
e) Estimated Profit (c - total
estimated cost)

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Here are the steps that will guide you in making your own simple
product.

1. Design your product. Make a sketch of the product you have in

mind. Your sketch does not necessarily be an
accurate one. You may describe it in words
instead if you cannot draw it. Make sure that &
your product is different from the rest. You
%
must create your own identity.
2. Decide what materials to use. Unleash
your creativity by choosing the right materials
for your product. Consider the availability and
cost when selecting the materials.
3. Create the product. Create first the initial version of the product.
You may look for other person/s to assist you. You may opt to create
a prototype of the product if possible or you
may go directly to the creation of the first
version using the real materials. Don't forget
to document everything as you will be
creating more of it in the future.
4. Evaluate the first version and make the necessary
adjustments or changes. Have a good look with your product. You
may also ask suggestions from relatives and z0^-
friends for improvements. Make the necessary v r
adjustments on the design then document the

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changes. After which, go back to step 3. Continue with the

adjustments until you are satisfied with the quality of your product.
5. Determine the price of your product. Compute for the costs
incurred in making the product. You may also
include miscellaneous cost and creativity fee for
a
« b
(i

the effort exerted. The sum of all the costs

determines the wholesale price of your product.
You may double this amount to get the retail price
of your product.
6. Advertise your product. Promote your product either by using
printed materials or online. On either way, make
sure you use high-quality pictures of your product.
You may also promote your product during
programs or gatherings in your school or
community where there are more target
customers.

& Steve Jobs once said "If you haven't found it yet, keep looking."
This means never to stop trying. Don't iet your failure discourage
you from winning.

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Activity 1.2
My Simple Product

Let's talk and learn!

With your team, talk about how you will make your product or
service different from the rest. Check out the competition. Describe their
products and compare it with your future product.

Product offered by others Your Future Product

Let's do this!

Act now! Start creating the first version of your product and be ready
for the 6th Grade Entrepreneur Fair. Take pictures or videos of your activity
for future use. Let your teacher and classmates assess your product. Take
note of their comments and suggestions.

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