Entrepreneurial and Business Management Training

November 12-13, 2014

Capitol, La Trinidad, Benguet
COURSE OUTLINE
November 12, 2014
AM Prayer
Recap
SME Backgrounder
Introduction to Business Planning

PM
Preparing Your Business Plan – Application
Preparing Your Business Plan – Evaluation
STATE OF PHILIPPINE MSMEs
(MICRO, SMALL AND MEDIUM ENTERPRISES)
Philippine SMEs are categorized either based on asset size
(excluding land) or number of employees.

Category Total asset value No. of Employees

Micro enterprises P 3,000,000 or less 1-9

Small enterprises P 3,000,001-15,000,000 10-99

Medium enterprises P15,000,001-100,000,000 100-199

Large enterprises Above P100,000,000 200+

Source: RA 9501 Magna Carta for MSMEs

DISTRIBUTION OF ESTABLISHMENTS
in the Philippines

Source: NSO 2012

dti.gov.ph
MSMEs MAKE UP 99.6 OF ALL
COMPANIES

0.4%
LARGE
Asset size

Large >100M

99.6% Medium 15.1 –100M

MSMEs
Small 3.1-15M
Micro < 3M

Source: NSO 2012

dti.gov.ph
 MSMEs EMPLOY 65% OF THE TOTAL
LABOR FORCE

35%
0.4 %

65%
99.6%

Firms Employment

Source : NSO 2012 Large

dti.gov.ph
MSMEs
 MSMEs CONTRIBUTE 35.7% TO GROSS
VALUE ADDED

0.4 %
64.3%

99.6%

35.7%

Firms GVA

MSMEs Large
Source : NSO 2012
dti.gov.ph
There should be growth with social equity. . . . .
Push from the base – build a strong MIDDLE
CLASS. . . .

M E s
MS
DTI PROGRAMS AND SERVICES FOR
MSMEs:
 TRADE PROMOTION
 TRAINING AND PRODUCTIVITY
 FINANCING CONSULTANCY
 PRODUCT RESEARCH AND DEVELOPMENT
 INSTITUTIONAL SUPPORT
 EXPORT FACILITATION
 INVESTMENT PROMOTION
 BUSINESS REGULATION – Business Name Registration
 114TH BENGUET ANNIVERSARY AND ADIVAY FESTIVAL
LECTURES AND FORUMS FOR MSMES (Micro, Small and Medium Enterprises)
TOPIC DATE VENUE CONTACTS
(for confirmation/details)

cGOOD NOVEMBER 18, 2014 Ben Palispis DTI office:

MANUFACTURING 8:00am-4:00pm Hall, 619-2722
PRACTICE SEMINAR Provincial 304-1120
(cGMP) Free Registration Capitol, La Mobile Nos:
09291262834
Trinidad, (GMP/PTRACE)
PHILIPPINE NOVEMBER 19, 2014 Benguet 09102645354
TRACEABILITY 8:00am-4:00PM (financing forum)
PROGRAM ON FOOD
SAFETY AWARENESS Free Registration
(PTRACE)

FINANCING FORUM NOVEMBER 20, 2014

8:00 am-4:00pm
 ADIVAY FINANCING FORUM
NOVEMBER 20, 2014 (THURSDAY)
8:00 AM – 5:00 PM
BEN PALISPIS HALL, PROVINCIAL CAPITOL
LA TRINIDAD, BENGUET

BE INFORMED OF AVAILABLE CREDIT PROGRAMS FOR

BUSINESS CAPITAL AND EXPANSION
Making Your
Business Plan
 A BUSINESS PLAN IS A BLUEPRINT OF YOUR
COMPANY, PRESENTED IN STANDARD BUSINESS
FORMAT THAT IS LOGICAL AND WELL
DOCUMENTED. A BUSINESS PLAN PRECISELY
DEFINES YOUR BUSINESS, IDENTIFIES YOUR GOALS
AND SERVES AS YOUR FIRM’S RESUME.
 IT IS A ROADMAP TO AN UNFAMILIAR TERRITORY
AND AS SUCH, WILL MINIMIZE OR AVOID COSTLY
MISTAKES IN BUSINESS.
 IT IS A DOCUMENT THAT AIMS TO ESTABLISH
WHETHER OR NOT A BUSINESS IDEA WILL BRING IN
MONEY THAT IS GREATER THAN WHAT IT COSTS TO
START AND OPERATE IT.
 A GOOD BUSINESS PLAN IS:
Your most important

communication tool
A strategic vision of your

company
A tool for measuring and

improving performance
A basis for sound decision

making
 PARTS OF A BUSINESS PLAN
I. General Information
II. Executive Summary
III. Market Study/Marketing Plan
IV. Technical/Production Details
V. Business Organization and
Management Study
VI. Financial Study
 I. GENERAL INFORMATION

 Gives the basic information about

your business in one liners:
- title of the project
- name of proponent/owner
- address/contact details
- cost of the project and sources of
funding
 II. EXECUTIVE SUMMARY
 Gives an outline of your business. It
should be neatly presented because it
is the first impression of anyone who
reads your business plan.
 It gives a brief description of what

your business will do. It is a

statement about what product or
service you are going to provide to
 SAMPLE EXECUTIVE
SUMMARY
(FOR TRANSPORT SERVICE)

This project describes how the proponent shall acquire,

maintain and sustain the operation of one unit truck for
business and income purposes.
One unit Isuzu truck shall be acquired through 60%
counterpart and 40% loan financing. It shall be operated by
the owner and his immediate family. The unit shall provide
trucking services for vegetables, sand and gravel and other
commodities for a fee. The area of operation shall be Baguio
City to any point in the Cordilleras including Manila only.
 III. THE MARKETING PLAN
It describes in detail what product or
service are you providing to the market.
Describes how you are going to sell

your products services

It revolves around the 4Ps of marketing
4 P’s OF MARKETING PLAN
(Marketing Mix)
• PRODUCT
• PRICE
• PLACE
• PROMOTION
PRODUCT – Any commodity or
service offered to a market with the
intent of satisfying a need or want.
What are its qualities, features,
options, style, brand name, packaging,
sizes, services or warranties.
In today’s highly competitive market:
You need to differentiate, otherwise
competition can kill you. (differentiate or
die)
“Copying with a slight difference”
“Modify, MAGNIFY, minify, substitute”
Two things customers will value:
1. solution to their needs
+ 2. a happy, good feeling
PRICE – What you are going to
charge your customers for your
products or services. It also
includes the discount you will
give and any terms of credit you
will offer the customer.
PLACE – Location of your
business. This includes making
your products and services
accessible to your customer. It
also considers easy access to your
raw materials.
PROMOTION – Informing and
attracting the customers to buy your
products or services through advertising,
publicity or sales promotion.
MARKETING PLAN FORMAT
Description of the Product
Your Customers- total market and market share
Your Competitors- comparison of your products
Selling Price/terms
Place of distribution/outlets
Promotional Measures
Marketing Strategy
Marketing Budget
Sales Forecast- Projected sales per cycle
How do we forecast sales in the
most practical way?
- physical counting/estimation
- sampling
- check out existing competition
- check industry standards
Note: All estimates should have a
logical and realistic basis
How do we compute sales?

S= Q_ _ _ _ _ _ _ x P_ _ _ _
S = Q x P x F_ _ _ _ _ _ _ _
 IV. TECHNICAL/PRODUCTION
DETAILS
Plant /Business Location Production Cost Plant Layout/
Utilities
Manufacturing
Process

Labor Structures Machines & Waste

Requirement ( Building Equipment Disposal
& Facilities)
 V. ORGANIZATION AND
MANAGEMENT STUDY
TO ORGANIZE YOUR BUSINESS YOU
MUST DECIDE:

What staff and positions your

business needs.
Staff qualifications, job
description, salaries/benefits
 STAFFING
To determine staffing needs:

a. List all task that will have to be

done in your business.
b. Describe what skills and other
requirements employees will
need to do this task.
d. Decide how many employees
SAMPLE ORGANIZATIONAL
STRUCTUREOWNER
FOR SOLE PROP.
Pa

FINANCE
AND
PRODUCTIO MARKETIN
ADMINISTR
N DIVISION G DIVISION
ATION
DIVISION
Plant
Credit and
Maintenance Sales force
Collection
Quality Market
Auditing and
Control Research
Accounting
Materials Sales
Personnel
Purchase Promotion
Gen. Admin,
Production Advertising
and Services
Planning
 SAMPLE ORGANIZATIONAL
STRUCTURE FOR
COOPERATIVE
GENERAL ASSEMBLY

ELECTION BOARD OF AUDIT COMMITTEE

COMMITTEE DIRECTORS

CREDIT EDUCATION AND MEDIATION AND GENERAL TREASURER SECRETARYETHICS COMMITTEE

TRAINING
COMMITTEE CONCILIATION MANAGER
COMMITTEEE
COMMITTEE

SPECIAL
PROJECT OFFICE LOAN COLLECTOR
OFFICER CLERK/STAFF
SAMPLE ORGANIZATIONAL
STRUCTURE FOR
ASSOCIATION
GENERAL
ASSEMBLY

PRESIDENT

VICE PRESIDENT

SSF PROJECT
SECRETARY TREASURER P.R.O MANAGER

PRODUCTION MARKETING
Schedule of Implementation

Activities 1 2 3 4 5 6 7 8 9 10 11 12

1.Prepare business plan X X

2.Raise capital X X
3.register business with X
government registering bodies
4.aquire all licenses and X
permits to operate
5.acquire machineries and X X
equipment
6. hire people X X

7.give orientation to people x

8.trial run x
9.operate business x
 VI. FINANCIAL STUDY
FINANCIAL REQUIREMENTS:
 Fixed Capital - cost of land, building, lease deposits,

machinery and equipment, furniture and fixtures

 Working Capital - money you need to run the business on

a daily basis. Ex: Purchase of raw materials, purchase of
goods for sale, salaries and wages, utilities, gasoline/fuel,
delivery expenses, rent expenses, repairs and maintenance

 Pre-Operating Capital – the money that you spend to

register your business, licenses, initially promote and
advertise your business
Seeking Sources of Capital
Rules for Sound Financing
 A small businessman should know exactly
what type of capital he needs and how he can
obtain it. If he borrows the capital, he must
know exactly how to repay it
 The ideal debt-equity ratio of one’s capital
structure must be 40:60
Rules for Sound Financing
 Capital for fixed assets requirements
must be financed from long term
sources.
 Short term requirements like daily

working capital should come from short

term sources.
 TOTAL PROJECT COST
(SAMPLE)
PARTICULARS EQUITY(PHP) LOAN (PHP) TOTAL
PRE-OPERATING 10,000.00 10,000.00
CAPITAL
FIXED CAPITAL 65,000.00 20,000.00 85,000.00
WORKING CAPITAL 30,000.00 30,000.00
TOTAL 75,000.00 50,000.00 125,000.00
Planning for Business Growth
 Business owners create growth plans to assess
business expansion and potential growth
opportunities.

 Business growth planning is usually an

extension of the original business plan.
Growth plans contain information on how a
business owner will expand facilities or
services and acquire additional economic
resources to meet increased consumer
demand or expand consumer reach.
The Challenge . . .

Business Plan

expansion plan
In summary,
The following factors are necessary for a
successful business:

 A SOUND BUSINESS CONCEPT

 UNDERSTANDING OF YOUR MARKET
 CAPABLE MANAGEMENT
 ABLE FINANCIAL CONTROL

+ COURAGE AND PASSION

GOOD LUCK! AND THANK YOU FOR YOUR TIME.
References
1. Your guide to starting a small enterprise,
BSMED 2010
2. GO NEGOSYO 21 Steps on how to start your
own business, Go Negosyo 2009
DEPARTMENT OF TRADE AND
INDUSTRY
Province of Benguet
3/f Manongdo Building, Private Road,
Magsaysay Avenue, Baguio City

Telefax: (074) 619-2722

Telephone: (074)304-1129
Email: CAR.Benguet@dti.gov.ph

Thank you!