Introduction to

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.
Presumably, all the market research has been done and the desired customer
segment has been targeted. Likewise, the final location has been chosen and the
new segment has been designed and developed. These have all been part of the
rigorous steps taken in preparing for entrepreneurship. Now is the time to set up
the enterprise, plan its future, and mobilize the needed resources.

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 A VERY CLEAR
PURPOSE
The entrepreneur must be very clear about the purpose in
establishing the enterprise. The personal purpose of the entrepreneur is
1 his or her personal mission. As time passes, the enterprise begins to have
its own life and may have a purpose separate from the personal mission
of the entrepreneur.
The enterprise must state its mission statement clearly for:
▸ the sales of the customer 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.

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 A VERY COMPELLING VISION
The entrepreneur must establish an enterprise on the basis of a very
exciting business concept leading to grand vision. The entreprenuer
must offer something new, something appealing, something different
2 that says, "Take notice, I'm arriving with a bang!" In other words, the
entrepreneur must present a winning business concept that manifest
tremendous future possibilities.
 NOT BY ANY OTHER
NAME
The entrepreneur must choose a very fitting name for the
enterprise. A good name identifies the company very well. It
3 communicates what the company is all about and what its products are
all about.
 A COMPANY OF
ANGELS
In livelihood undertaking or microenterprise, it is common for
entrepreneurs to embark on a business venture as a "lone wolf," not
needing the capital or expertise of others. At best, it may be a "mom and
4 pop" affair.
Angel investors provide capital to entrepreneurs knowing that there
are risks involved. However, they are prepared to support the
entrepreneur because of the good business prospects they are seeing and
thier favorable character assessment of the entrepreneur.
 A VERY GOOD
BUSINESS PLAN

It is a wise thing to do in order to chart the course of the business

properly and to focus the efforts of the entrepreneur. The entrepreneur
5 must flesh out, into more specific details like; what is the business
plan's purpose is: for whom it is being written, and what would be the
coverage of the business plan.
The business plan should contain important information about the following:
▸ The business itself;
▸ The organizers;
▸ The management and technical people;
▸ The financial steucture;
▸ Its market potential

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▸ Its target market;
▸ Its projected sales, expenses, and profits; and
▸ Its probable risks.

The business plan should begin with the business concept and the vision
for the enterprise in the next three to five years.
The business plan should proceed to an enumeration of business
objectives, key result areas, and performance indicafors. An overall
enterprise strategy should then be articulated to show how the performance
indicators could be attained.

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Next, the business plan should contain an executive summary of the following:

1. The organizers and the key people behind the business and why these people
have the resources, talents, skills, and technology to achieve success;
2. The market being targeted and why there is enough market potential to justify
the business;
3. The products or services to be offered and why they are right for the market;
4. How the business will be operated and organized, including all outstanding,
subcontracting, franchising, and licensing agreements;

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5. The investment capital required for the business and what exactly it would be
used for;
6. The technology, the technical expertise, the equipment, and materials suppliers
to be utilized;
7. The capital structure (short and long term debt, stockholders' equity) of the
business;
8. The operating budget, financial projections (income statement, balance sheet,
cash flow), and return on investment prospects; and
9. The risks in the business and the contingency measures to counteract them.

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 The business plan should elaborate the contents of the executive
summary. Each content must be justified convincingly by analyzing relevant
information and making logical conclusiins.

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 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 investment
in the assets of the enterprise. These assets are composed of the
following:

1. The current assets, which are short-lived assets (cash, inventory,

accounts receivables, and current assets)
2. The long-lived or fixed assets (property, plant, and equipment)
3. The other assets (organizational and pre-operating expenses)

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 The simplest and easiest enterprise to organize is the sole
proprietorship. In this structure, the owner or entrepreneur has sole
control over the enterprise. In sole proprietorship, there is no
distinction between the owner and the enterprise. The entrepreneur
is personally answerable and obligated to fulfill all the terms and
conditions of any business contract that he or she enters into.

The sole peoprietorship is mandated by law to register the

business with the proper authorities. All business, in whatever
legal form, are required to secure a mayor's permit or municipal
license before they can operate in a locality.

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 Before getting this permit , there 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 jn space if spaced is leased
▸There
Locational
may be clearance
additional requirements depending on the
type of business and the ordinance issued by the concerned
local government.
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PARTNERSHIP

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 profits among themselves, them they would have entered into a
partnership.
A partnership is vested with its own legal personality quite distinct and
separate from its individual members. Thus, a partnership venture can own its
own assets. It can incur its own liabilities. It can sue and it can get sued.

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 A minimum of two persons can constitute a partnership. There are two
types of partnership based on the liability of the partners:

1. General Partnership
Composed of partners who are liable individually and collectively to all
those who have claims against them.
2. Limited Partnership
Consist of partners who have limited liabilities while others in the
partnership have unlimited liabilities.

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 In partnership, the decision of one partner is binding to all the other
partners. There should be internal mechanism and procedures followed to ensure
this. When the partners enter into a contract, they need the consent and
knowledge of the partners.
In order to form a partnership, a binding contract must be signed by all of
the partners. They should decide on a partnership name and craft their Articles
of Partnership. These Articles of Partnership must contain all the requirements
of the partnership.

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 The partnership should obtain all the required government clearances,
permits, and licenses, It should get:
* A bank certificate of deposit on the money contributions of the partners; and
* The approval for its partnership name from the Department of Trade and
Industry
Having obtained these documents, it should register and file its Articles of
Partnership with the Securities and Exchange Commission(SEC).

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CORPORATION

A corporation can be formed or incorporated by , at least five,

or most 15 natural persons. According to Philippine law, the
majority of the incorporators must be residents of the Philippines.
Four Types of Corporation

1. Stock Corporation. The Stock Corporation issues capital stocks divided into
shares (or proportions of the total capital).
2. Non-Stock Non-Profit Corporation. The Non-Stock Corporation is organized
to carry out a purpose or purposes other that generating profits investors. The
Non-Stock Corporation usually has a social mission.
3. Close Corporation. The 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. A corporation Sole is a form of corporation allowed by law,
usually associated with the clergy. The Corporation Sole is a trusteeship that is
set up for the purpose of administering and managing affairs.
 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
6 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 fasts

About the customer

About operations
About competition
About financing needs
▸ About teamwork

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THANKS!

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