Chapter 4

Business Description

This chapter describes the nature of business, product to produce, the equipment
needed in the business, the size of business in terms of capitalization and scope, and
the personnel required to handle the operation.

Nature of Business
- In terms of nature, business is categorized according to what they are doing to
what they are doing in the business. It can be Manufacturing (production of
goods), Merchandising (engaged in buying and selling), Service (provision of
service), Agricultural (examples are hog fattening, poultry, growing ornamental
plants, fish pond, mushroom production, etc.)
- Describe the nature where your business belongs. Example Nestle Corporation
is manufacturing business that produce varieties of food and beverage……

Description of Product or Service

- Describe the product or service you are going to offer in terms of physical
characteristics. You may use descriptive words like refreshing, mouthwatering,
luscious, durable, environment-friendly, long-lasting, durable, energy-saving, and
others.

Equipment/Materials Needed
- List all the equipment/materials needed in the business. Ang materials ay mga
sangkap o ingredients upang magawa ang isang product kung ito ay pagkain.
Kung service ang business ito ay mga bagay na ginagamit upang maibigay o
 maihatid ang service sa customers. Samantala, ang equipment ay mga
malalaking machine. Para mas organized, gumamit ng table in listing all the
materials and equipments. Unahing i-table ang mga materials then isunod ang
equipment /machine pero separate na table. Sa unang column ay ilagay ang
photo ng material. In the second column ay ilagay ang photo ng material. Sa third
column ay ang brand material. Sa fourth column ay ang price ng materials based
on the current price sa market.

Size of the Business

- Describe the size of the business in terms capitalization. Maaaring ang iyong
business ay small, medium, o large enterprise. Ilista ang kabuang capital.

Personnel Requirement
- List all the personnel required in the business. They are the ones who will work
for the company to be able to produce products/provide the service. They are the
workers or employees. They are important part of the business. Example, kung
ang business mo is bakeshop, you will need excellent baker to make excellent
bake products. In relation to that, you will hire baker that has an educational
background or degree or training in baking or related courses. You wil need
server/s for serving the products to customers, clearing the table, assisting and
other related works. You will need cashier to collect and process payment. You
will hire cashier that can operate the cash register and do other related works.
You will need dishwasher to wash the dishes used in the operation. You will need
sales and accounting staff for the works related to accounting like recording of
business transactions. To achieve the VMGO, you will hire personnel who is
qualified for the job.
 Chapter 5
Organization Plan

This chapter describes the form of business organization, the liability of the
owners, the organizational structure, the roles and responsibilities, and the proposed
salary.

Form of Business Organization

- The form of business organization is categorized according to the number of
owners. It is sole proprietorship if the business is owned by one person only. If
the business is owned by two or more persons it is partnership. It is called
corporation if it is owned by at least five persons but not more than fifteen.

Liability of the Owner

- This refers to the financial obligation of the business owner. The business has
financial obligations to the employees/workers. The employees/workers shall be
compensated in the form of wage/salary.

Organizational Structure
(Put your Organizational Structure. It includes the complete names of the top position
down to low position, decent formal photos with white background, and the position.)
Figure 3. Organizational Chart
Roles and Responsibilities

Figure 1. Summary Table Showing Details About the Business Owners

Name of Owners Qualifications Previous Capital Contribution
Entrepreneurial
Experience (If there
is any)

Figure 2. Summary Table Showing Details About the Management Team

Name of Manager Job Titles, Duties, Qualifications Managerial
and Experience (If there
Responsibilities is any)

Proposed Salary
- Put this on table.

Position Rate Monthly Cost Annual Cost

Restaurant Monthly P 15, 000.00 P 50, 000.00
Manager
Assistant Monthly 10, 000.00 120, 000.00
Manager
Head Waiter Monthly 7, 000.00 84, 000.00
Waiters (10) P30 per hour, 8 6, 260.00 751, 200.00
hrs a day
 Chapter 6
Production Plan

This chapter presents the production schedule, production process, equipment

required, sources of materials, and estimated production cost.

Production Schedule
a. total number of goods to produce
b. expected time to produce the product

Production Process
a. exact procedural steps in producing the product
b. materials, parts, or ingredients required
c. expected time to process the product

Equipment Required
a. describe the manufacturing plant (including the location and the reason for the
selection of site
b. describe the machinery and equipment including their estimated cost/price (put
pictures of the machinery and equipment with brand indicated) – in the selection
of machinery and equipment, consider the following – capacity of the plant or
machinery, model of the machinery or equipment, availability of spare parts, and
cost of terms and payments.
c. describe the various tools and their estimated cost/price (tools are usually
handheld device) Example: In bakeshop, spatula, utility bowls, measuring cups
and spoons, molder, rolling pin, wire whisk, oven mitt are example of baking
tools.
Sources of Materials
a. describe the proximity of the source of materials to the processing plant
b. payment terms and conditions
c. discounts and damages
d. terms of payments

Estimated Production Cost

a. list down all the materials in the production
b. show the estimated cost of all the materials ( the three elements of production –
direct labor, direct materials, and factory overhead )
Note: The total cost of proposed product may serve as the basis in setting its selling
price, which must not be lower than its production cost.