A VERY CLEAR MISSION

- the purpose must be Compelling

enough to motivate the entrepreneur.

• Generating profits
• Feeding the Family
• Making a difference in the Industry
• Actualizing one self
 As time passes, the enterprise begins to have it’s own
Life and may have a separate purpose from the Personal
mission of the Entrepreneur.

• The Sake of the customers being wooed

• The Investors who need to know what they are getting
into
• The Financiers evaluating the enterprise
• The Government functionaries who must regulate the
activities of the industries or businesses
 A VERY COMPELLING VISION

• Must establish an enterprise on the basis of a very

exciting business concept
• If the business is just like any other businesses in
the marketplace, customer will not take notice
• Must offer something new, something appealing,
something different
• Must present a winning business concept that
manifest future possibilities
 • NOT BY ANY OTHER NAME

• Must choose a very fitting Name for the

enterprise
• A good name Identifies the company very well
• It communicates what the company is all about
• Company/ Business name must project it’s very
desired image
 A VERY GOOD BUSINESS PLAN

Business plan should contain important information about the following :

• The business itself

• The organizers
• Management and technical people
• Financial structure
• Market potential
• Target market
• Projected sales, expenses and profits
• Probable risks
 GUIDELINES
1. Begin with business concept and the vision for the
enterprise in the next three to five years.
2. The organizers, key people behind the business, why
these people have the resources, talents, skills and
technology to achieve success.
3. Market being targeted and why there is enough
market to justify the business.
4. Product and services to be offered and why they are
right for the market.
5. How the business will be operated and
organized including outsourcing, subcontracting,
franchising and licensing agreements.
6. Investment capital required and what exactly it
would used for.
7. The technology, technical expertise, equipment
and materials supplier to be utilized.
8. Capital structure ( short and long term debt,
stockholder’s equity )
9. The operating budget, financial
projections ( income statement, balance
sheet and cash flow )

10. The risks in the business and the

contingency measures to counter act
them.
 ORGANIZING AND STRUCTURING THE ENTERPRISE

Kinds of Assets :

1.Current assets or Short lived assets – composed of cash,

inventory, raw materials, account receivables.

2. Fixed assets or Long lived assets – composed of land, plant,

equipment, vehicles, machinery.

3. Other assets composed of organizational and pre operating

costs.
 Kinds of Liabilities :

1.Current Liabilities – suppliers credit

2.Long term debt – bank loans, financier

loans

3.Owner’s equity – share of sale percentage