Business Implementation

After much seeking and screening of entrepreneurial

opportunities, the critical decision to seize one particular
opportunity culminates in the establishment of an
enterprise.

A Very Clear Purpose

The enterprise must state its mission statement
clearly for:
*The sake of the customers being wooed;
* The investors who need to know what they are getting into;
*The financiers evaluating the enterprise; and
*The government functionaries who must regulate the
activities of industries and businesses.
 A Very Compelling Vision
 The entrepreneur must stablish an enterprise on the basis of a very
exciting business concept leading to a grand vision.

Not by Any Other Name

 A good name identifies the company very well. It communicates what the
company is all about and what its products are all about. The
entrepreneur must think long and hard all about the name because he or
she has to live with it for a very long time.

A Company of Angels
 The choice of business partners here is very critical one. Thus, the
entrepreneur must choose the “company of angels”, partners who are
well-meaning and like-minded. Angels also exert a lot of effort in
choosing the correct partners. Angel investors may come in the form of
senior relatives, close friends, and professional equity investors.
A Very Good Business Plan
The purposes of a business plan are:
 1.Entice partners, investors, bankers to fund a business venture.
 2.Communicate what the enterprise is all about, what market it wants to
serve.
 3. Show what financial returns it could muster.

The business plan should contain important information about the

following:
*the business itself;
*the organizers;
*the management and technical people;
*the financial structure;
*its market potential;
*its target market;
*its projected sales, expenses, and profits, and
*its probable risk
Organizing and Structuring the Enterprise
The business plan must be able to estimate the capital
required by the enterprise. The capital required would be
dictated by the assets of the enterprise. These are
composed of the ff:
1. The current assets, which are short-lived assets. They are composed of
cash, inventory, accounts receivables, and other current assets.
2. The long-lived or fixed assets. They are composed of property, plant,
and equipment.
3. The other assets. They are composed of organizational and pre-
operating expenses.

*The way the financial package is designed is called the capital structured
of the enterprise.
These are clearances that must be obtained.
 *Barangay clearance
 *Fire safety clearance
 *Certificate of electrical inspection
 *Certificate of occupancy
 *Department of trade and industry(DTI) certificate
 *Lease contract if space is leased
 *Locational clearance
There may be additional requirements depending on the
type of business and the ordinances issued by the
concerned local government.
Bureau of Internal Revenue(BIR)- For taxation purposes
Tax Identification Number(TIN)- For a sole proprietorship
 If two or more persons bind themselves into a contract to
contribute, money, property, and expertise in a common venture
with the intention of dividing the profits among themselves, the
they would have entered into a partnership.
General Partnership-is composed of partners who are liable
individually and collectively to all those who have claims against
them.
Limited Partnership-consists of partners who had limited liabilities
while others in the partnership have unlimited liabilities.

Corporation-can be formed or incorporated by, at least five, or at

most 15 natural persons. The corporate from the business allows
various combinations of fund to be raised from financiers and
investors.
Four types of Corporations
 1.Stock Corporation-issues capital stocks divided into shares(or
proportions of the total capital).
2.Non-stock Non-profit Corporation-is organized to carry out a
purposes other than generating profits for the investors.
3.Close Corporation-has articles of incorporation that limit the
ownership of issued stocks to at most 20 persons. There are strict
restrictions on the transfer of stocks.
4.Corporation Sole-is a special form of corporation allowed by law,
usually associated with the clergy. The corporation sole is trusteeship
that is set up for the purpose of administering and managing the
affairs,property.
A Merry Band of Men and Women
 After establishing the enterprise, the entrepreneur must meticulously
screen and hire men and women who foster the cause and share the
commitment of the enterprise. Good character and competence must
be the two major criteria for hiring people.

 If the team is not fully equipped technically and managerially, the

small size of the organization should allow the people to learn fast:
 *about customers
 *about operations
 *about competition
 *about financing needs
 *about teamwork