entrepreneurship business plan powerpoint

how to make your business plan

1. The Business
Plan
The Business
Plan
CHAP.6-PART 2
G4-AREJA, GAAC, HAMOY, MARAMARA, PLANDO, & REDOBLE

2. Objectives:Objectives:
Business
Plan
Essentials
Legal Structure
& Registration
Launch the
Business
Plan
Understand the core
components of a
successful business
plan including market
analysis, production
planning, organizational
structure, and financial
projections.
Learn about basic
financial statements,
how to analyze them,
and the importance of
social-cost benefit
analysis for making
informed decisions.
Learn about the
different legal
structures available for
your business (sole
proprietorship,
partnership,
corporation,
cooperative) and their
pros and cons.
Learn the steps toward
creating your own
personalized business
plan and about turning
knowledge into action
and giving you the
confidence to move
forward with your
business idea.
Financial
Management
Essentials

3. Market planMarket plan

4. Market PlanMarket Plan
Market: Analyze the target audience, market size, trends, growth
potential.
Competitor: Analyze the competitor strengths/weaknesses, market
share, strategies.
Marketing: Analyze the positioning, messaging, channels, promotion,
pricing.
Sales Strategy: Sales process, distribution channels, customer
relationship management.
The market plan will show the target market or specific
group of customers the firm wishes to serve.
Key Components:
The market plan is a strategy for identifying customers,
setting prices, promoting the product, and distributing it
effectively.

5. Production planProduction plan

6. Production PlanProduction Plan
Product specification1.
Product Process - using flow chart2.
Production machinery and equipment - shows using table3.
Production raw materials and other supplies - using table4.
Describe utilities, location, layout, and waste disposal5.
Production Schedule6.
Determine manpower requirements7.
Schedule of inventory and order of raw materials and other supplies8.
Guide/Steps:
The production plan details about how to make the
product, including equipment, materials, labor, and
production schedules.

7. Production PlanProduction Plan
Product Process (using flow chart)
Manpower Requirements

8. Production PlanProduction Plan
Production Machinery & Equipment
(using table)
Schedule of inventory (keeping the
stocks)

9. organization planorganization plan

10. Organizational PlanOrganizational Plan
Form of Ownership:
Sole Proprietorship
Partnership
Corporation
Cooperative
Organizational Structure:
Organizational chart showing hierarchy & reporting
Functional areas: Marketing, Production, Finance,
Administration
The organizational plan shows the company's legal
structure, internal organization, job roles, and pre-launch
activities.

11. Organizational PlanOrganizational Plan
Pre-Operating Activities: using Gantt chart
Business registration
Business plan development
Securing financing
Facility setup
Hiring personnel
Other key activities (e.g., permits, licenses)

12. Financial planFinancial plan

13. Financial planFinancial plan
Financial Plan
The financial plan translates into monetary terms the various plans you have for the
business.
Made up of:
Total fixed assets - building, land, and equipment used in the business.
Working capital - amount of funds you need to pay for expenses, such as materials
and supplies, labor, and utilities needed for production within a relatively short
period after which the products can be sold.
Pre-operating expenses - registration fees and fees paid to a consultant or
researcher who prepared the feasibility study.
Total Project Cost

14. Financial planFinancial plan
Source of Financing
This section of the financial plan will simply indicate where the funds for the business will
come from.
Funds may come from him and other co-owners.
Equity Contribution
Creditors
Sources of borrowed funds.

15. Financial planFinancial plan
Financial Statement
The financial plan usually includes the following financial statement:
Profit and Loss Statement (P&L) - presents details regarding sales and expenses
incurred or will be incurred by the business as of a given date.
Balance Sheet - present details of what the business owns (assets) and its value. It
presents the equity contributions of owners and liabilities to the creditors.
Cash Flow Statement - presents in detail the projected cash expenses and
disbursement for a given period.
Financial Analysis
Consists of computations of profitability, liquidity, and marketability of the enterprise
based on the information from the profit and loss statement and the balance sheet.

16. Financial planFinancial plan
Social-Cost Benefit Analysis
Requires you to look at the benefits and the costs that will accrue to society in general if
your prospective business is established.
Benefits:
Employment generated - providing jobs to the unemployed.
Taxes paid - contributing to government revenues which can in be used in building
roads and other facilities for the benefits of the general public.

17. Organizing the
enterprise
Organizing the
enterprise

18. Organizing the enterpriseOrganizing the enterprise
Business is all about people. It is made up of "warm bodies" without which
business will not run and will not even be conceived.
Owner (or proprietor) - the most important person in the business.
Managers and supervisors - also important.
Workers - known collectively as the rank and file. They are the backbone of
the organization. These workers are the ones that man the production lines
and keep your administrative and marketing operations going.
Together, these "warm bodies" are known as your organization.

19. Small business
enterprise is manageable
Small business
enterprise is manageable

20. Small business enterprise
is manageable
Small business enterprise
is manageable
According to Stanley and Morse, a small enterprise is sometimes defined as "a
manufacturing or service enterprise wherein the owner-manager is not actively
involved in production but performs the varied range of tasks involved in guidance and
leadership without the help of specialized staff."
Two kinds of small business:
Micro business - where the owner is the principal worker and he employs one or
more assistants.
Bigger smaller business - where the owner mainly directs the work of the
employees.
Common characteristics of a small business:
It is privately-owned.
It has few or no layers of management.
It has insufficient resources to dominate its field of business.

21. Small business enterprise
is manageable
Small business enterprise
is manageable
R.A. 6977
The Magna Carta for Small Enterprise defines small and medium enterprise as any
business activity or enterprise engaged in industry, agribusiness, and/or services,
whether single proprietorship, cooperative, partnership, or corporation whose total
assets are inclusive of those arising from loan, but exclusive of the land on which the
particular business entity's office, plant, and equipment are situated, must have value
feeling under the following categories.
Micro: less than - Php 50,000
Cottage: Php 50,001 - Php 500,000
Small: Php 500,001 - Php 5,000,000
Medium: Php 5,000,001 - Php 20,000,000

22. FEATURES OF A SMALL
BUSINESS
FEATURES OF A SMALL
BUSINESS
Low in capital
but high in
labor intensity,
and has
insufficient
financial
resources
Efficient in
specialized
skill and
service
Feasibility
study may not
be required
Conduct their
operation
right inside
the market
place, closer
to the buyer.
Succeed in
small isolated
or overlooked
markets in
rural
communities
with few
residents

23. FEATURES OF A SMALL
BUSINESS
FEATURES OF A SMALL
BUSINESS
Size of
enterprise is
small in
relation to the
industry
Capital is
usually
financed by
the family
through its
own savings
and/or loans
The owner-
manager
employs his
wife and
children
The area of
operation is
small

24. Choosing your own role in
the business
Choosing your own role in
the business
Your education and training
Your experience
Your interest and aptitude
Your time
Advantage of having a broad view
Your educational background influences your
role. Engineering and technical education may
lead to production roles, while finance-related
studies align with financial management.
Past work experience determines your suitability for
roles. If you've been a production supervisor,
managing production makes sense. If you have
accounting experience, finance might be a good fit.
Even without formal training, your interests
matter. If you're outgoing and persuasive, you
may excel in sales. If you enjoy working with
tools, production management could suit you.
Time is limited; being involved in all aspects of the
business might be overwhelming. Balancing roles in
business and personal life is essential.
Focusing too much on one aspect of the business, such as
production, can lead to neglecting other crucial areas like
sales, marketing, and finance. A well-rounded approach
ensures balanced growth and long-term success.

25. Choosing People to work with youChoosing People to work with you
Hiring from family
and friends
Ensure they can do the job
effectively.
Set clear ground rules on
performance &
expectations.
Shift from personal to
professional relationships.
Guidelines on how to determine
your employee requirements
List down different tasks that
have to be done in the
business
1.
Marketing- Selling,
promotion, customer service.
Production- Manufacturing,
equipment maintenance,
quality control.
Finance - Payroll,
bookkeeping, cash
management.
Administration - Supplies,
contracts, business records.
2. Cross out tasks you will handle
yourself, then assign remaining tasks
to employees.
The entrepreneur will take on the roles
of:
General Manager
Production Manager
Finance Manager
Personnel Manager
Example positions for employees:
Sales Manager (1)
Sales Assistant (2)
Bookkeeper/Secretary (1)
Sewers (4), Inspector (1), Driver (1)

26. Choosing People to work with youChoosing People to work with you
Guidelines on how to determine
your employee requirements
3. List qualifications required in terms
of skills, education and training,
experiences and personal
characters
Example:
A bookkeeper-secretary
Female, single, 18-30 years old
Business/Commerce graduate
Proficient in MS Office & office
equipment
Must know how to compose
business letters
Preferably six months experience
in bookkeeping/secretarial work
Pleasant personality
4. Determine Salaries & Wages
Decide how much you will pay
each position.
Determining salaries is a critical
decision because:
Lower wages reduce labor costs
and increase business profits.
Higher wages motivate
employees to stay and work
harder, as low-paid workers may
not perform as well as highly-paid
ones.
5. Once you have done
Nos. 1 to 4 above, you can
begin the process of
recruiting, screening, and
selecting the people to
work with you in your new
business.

27. Choosing the legal
form of your business
Choosing the legal
form of your business

28. Sole
Proprietorship
Sole
Proprietorship
This is a business owned by only one person, the simplest form to
establish.
Business income is taxed as personal income.
Owner assumes total responsibility for profits and losses.
Owner is liable for business debts.

30. PartnershipPartnership
A business formed when two or more partners come together.
Shared ownership of money and other assets.
Decision-making is distributed among partners.
Profits and losses are shared.
Liability for debts is unlimited unless specified otherwise.

32. CorporationCorporation
A company with at least five owners, considered a separate legal entity.
Can own property, sue, and be sued.
Ownership is divided into shares of stock.
Managed by a board of directors.
Life of the corporation is not affected by the death of a shareholder.

34. CooperativeCooperative
A group enterprise formed by individuals to avail economic benefits.
Often created by consumers or producers to reduce costs.
Profits are shared among members.
Decision-making is collective, led by a board of directors.
Can apply for tax exemption.

36. The pros and cons of
each legal form
The pros and cons of
each legal form

37. Sole proprietorshipSole proprietorship
ADVANTAGES DISADVANTAGES
Allows you to be your own
boss
Easy to start
Allows you to keep all profits
Gives you complete control
Makes you liable to all the risks and
losses
Has limited access to capital and
other resources
Demands long hours of hard work on
your part
Does not allow sharing of
responsibility

38. PartnershipPartnership
ADVANTAGES
More money available
More "heads" contribute to the
success of the business
Losses are shared among the
Partners
Risks are also shared
Planning and problem-solving
are participatory
DISADVANTAGES
Control of business is shared and is limited
Profits are shared and are thus reduced
Consequences of a poor decision made
by a partner
Decision made by a partner is binding to
other partners
Liability for debts is unlimited
Property invested becomes the joint
property of all.

39. CorporationCorporation
ADVANTAGES
Capital is easily raised
DISADVANTAGES
Major decision cannot be done by the
owners without approval of the board
of directors
Corporate and individual profits, in
the form of dividends, are taxed
separately (double taxation)
More expenses are involved
More rules and regulations to comply
with

40. CooperativeCooperative
ADVANTAGES
Capital is easily raised
Liability is limited
More people benefit from profits
earned
Owners or members may
employ managers with relevant
qualifications.
May be tax exempted
DISADVANTAGES
Control of the business is shared
Ideas and decision made by
board have to be accepted by
the general membership

41. The Option Not To RegisterThe Option Not To Register
Some businesses operate informally (underground economy)
Advantages of staying informal:
No taxes
Low salaries (not bound by labor laws)
No required benefits (SSS, PhilHealth, Pag-IBIG)
No government control
Disadvantages of staying informal:
Risk of harassment (bribes, forced closures)
Limited growth (no contracts, no government support)
No legal protection (can’t sue or file complaints)
Institutional buyers require official receipts

42. How to register your
business
How to register your
business
Sole Proprietorship
Register your business name with the Bureau of Domestic Trade and the Department
of Trade and Industry (BDT-DTI)
Obtain a business clearance from the Barangay Captain of your place of business
Obtain a permit to do business from the LGU (your city or municipal government’s
business licensing office)
Get a Tax Identification Number (TIN) from the Bureau of Internal Revenue (branch
nearest you)
Register your business and employees with the Social Security System for social
benefits
Register with the Department of Labor and Employment (DOLE) office nearest you; if
you have five or more employees

43. How to register your
business
How to register your
business
Partnership or Corporation
First, You are required to register first with the Securities and Exchange
Corporation (SEC)
After which you have to go through all thr registration described for a sole
proprietorship

44. How to register our
business
How to register our
business
Cooperative
Register with the Cooperative Development Authority (CDA) office nearest
you.
Register the name of your cooperative with the Department of Trade and
Industry (DTI) office nearest you
Obtain a permit to operate the cooperative from the LGU
Get a Tax Identification Number (TIN) from the Bureau of Internal Revenue
You may also register the employees of your cooperative with the Social
Security System and the Department of Labor and Employment.

45. Registering with the DTI Registering with the DTI
Sole Proprietorship
Applicant must be 18 years old or
more
Two recent passport-size photos
of applicant
Proof of Filipino citizenship, if
applicant acquired this by
naturalization, election or other
means provided by law
Proof of Filipino citizenship (e.g.
birth certificate, Voter’s ID)
Partnership/Corporation
Cooperative
Certified true or photocopies of
articles of incorporation or
partnership, by-laws, and
registration certificate approved
by the SEC
If foreigners own 40% or more of
the capital, the SEC certificate
must specify that this is in
accordance with the Foreign
Investment Act of 1991
In case there is an increase in
capital, a certificate issued by the
SEC
Certified true it photocopies of
ariticles of cooperation, by-
laws, and CDA registration
certificate
Certificate issued by CDA, in
case of increase of
capitalization
Register your business name with the DTI Officd in the city or province where your business is located 1.
You will be asked to fill up an application of five copies 2.
A registration fee is charged 3.
Be prepared with at least three alternative business names4.

46. Registering with the Mayor’s office (LGU) Registering with the Mayor’s office (LGU)
Sole Proprietorship
DTI registration certificate of business name
Location Map of business establishment
Barangay clearance
Community Tax Certificate of proprietor
Plus depending on type of business, any of the following:
Building occupancy permit
Mechanical Inspection
Electrical Inspection
Pollution Clearance
Location clearance
Sanitary/health certificate
Police clearance
The office of the city or municipal mayor is where you go to in order to get a permit or license for a business.
Prepare a secured clearance from your local barangay1.
The barangay charges a small fee (Fifty Pesos, 1997 rates) for this clearance, which you have to present to the
Mayor’s office
2.
Be sure to bring some cash that may amount to around One Thousand Pesos when you register with the LGU3.

47. Registering with the Mayor’s office (LGU) Registering with the Mayor’s office (LGU)
Partnerships and Corporations
Location Map of business establishment
Barangay clearance
SEC registration certificate
Articles of partnership or incorporation
Current Class “C” certificate
Community Tax certificate for partners
Plus depending on type of business, any of the following:
Building occupancy permit
Mechanical Inspection
Electrical Inspection
Pollution Clearance
Location Clearance
The office of the city or municipal mayor is where you go to in order to get a permit or license for a business.
Prepare a secured clearance from your local barangay1.
The barangay charges a small fee (Fifty Pesos, 1997 rates) for this clearance, which you have to present to the
Mayor’s office
2.
Be sure to bring some cash that may amount to around One Thousand Pesos when you register with the LGU3.
Sanitary/health clearance
Police clearance

48. Registering with the Mayor’s office (LGU) Registering with the Mayor’s office (LGU)
Cooperatives
Location Map of business establishment
Barangay clearance
CDA registration certificate
Plus depending on type of business, any of the following:
Building occupancy permit
Mechanical Inspection
Electrical Inspection
Pollution Clearance
Location clearance
Sanitary/health certificate
Police clearance
The office of the city or municipal mayor is where you go to in order to get a permit or license for a business.
Prepare a secured clearance from your local barangay1.
The barangay charges a small fee (Fifty Pesos, 1997 rates) for this clearance, which you have to present to the
Mayor’s office
2.
Be sure to bring some cash that may amount to around One Thousand Pesos when you register with the LGU3.

49. Sole Proprietorship
Applicant must be 18 years old or
more
Two recent passport-size photos
of applicant
Proof of Filipino citizenship, if
applicant acquired this by
naturalization, election or other
means provided by law
Proof of Filipino citizenship (e.g.
birth certificate, Voter’s ID)
Partnership/Corporation
Cooperative
Certified true or photocopies of
articles of incorporation or
partnership, by-laws, and
registration certificate approved
by the SEC
If foreigners own 40% or more of
the capital, the SEC certificate
must specify that this is in
accordance with the Foreign
Investment Act of 1991
In case there is an increase in
capital, a certificate issued by the
SEC
Certified true it photocopies of
ariticles of cooperation, by-
laws, and CDA registration
certificate
Certificate issued by CDA, in
case of increase of
capitalization
Purpose: Obtain a Tax Identification Number (TIN) for tax purposes
Fees: $1,000 for VAT-covered enterprises (1997 rates)

50. Registering with the BIRRegistering with the BIR
Purpose: Obtain a Tax Identification Number (TIN) for tax purposes
Fees: $1,000 for VAT-covered enterprises (1997 rates)
Sole Proprietorship
Photocopy of DTI registration
Photocopy, if mayor's permit
Partnership/Corporation
Cooperative
Photocopy of SEC registration
Mayor's permit
Photocopy of CDA registration
or business permit
Additional Requirement: BIR Form 1702A-1 for tax exemption (for cooperatives)

51. Registering with the SSSRegistering with the SSS
Sole Proprietorship
Photocopy of mayor's permit
Employer's date record
Initial or subsequent list of
employees
Partnership/Corporation
Cooperative
Photocopy of articles of
partnership or incorporation
Employer's data record
Initial or subsequent list of
employees (The last two
requirements should be signed
by the managing partner of a
partnership or the highest
ranking officer a corporation.)
(Cooperatives, as a rule, of
partnership or do not have to
register incorporation with the
SSS, but their employees do.)
Purpose: SSS provides sickness, retirement, loan, and other social services to employees of private
businesses. The funds for such benefit come from contribution from the government (SSS) and from you, the
employer.

52. Registering with the SECRegistering with the SEC
When your business grows and you want to organize a corporation or partnership, or partnership in place of
the single proprietorship you originally set up, you need to go to the Securities and Exchange Commission
Additional Fees: Filing and miscellaneous fees
REQUIREMENTS:
Verification of proposed name of your firm. If it has been registered by any other name, you have to
change your proposed name and repeat the process.
Six copies of the following (for stock corporations):
Articles of incorporation1.
By-Laws2.
Undertaking to change corporate name3.
Treasurer's affidavit4.
Bank certificate of deposit5.
Authority to verify bank accounts6.
Registration data sheet/subscribes information sheet7.
Statement of assets and liabilities, if subscription is paid in property8.

53. other registering agneciesother registering agnecies
Some businesses require additional registration with specialized agencies:
Food and Drug Administration – For firms manufacturing drugs, cosmetics, and food products
Fiber Development Authority – For businesses engaged in processing and trading of fiber and fiber
products
National Food Authority – For traders and processors of rice, corn, and flour
Land Transport Franchise and Regulatory Board – For land transport services (jeepney lines, taxicab,
and bus operation)
Maritime Industry Authority – For sea transport services
Philippines Overseas Employment Administration – For firms engaged in recruitment of workers for
employment abroad
Department of Education, Culture, and Sport – For owners of schools, universities, and other educational
institutions
Department of Tourism – For hotels and other lodging facilities for tourists

54. other registering agneciesother registering agnecies
Philippine Contractors Accreditation Board – For construction contractors
Bangko Sentral ng Pilipinas – For exporters in general
Bureau of Food and Drugs – For exporters of drugs, cosmetics, and food products
Philippine Coconut Authority – For exporters of coconut and coconut by-products
Garments Trade Export Board – For exporters of garments and textile
Bureau of Fisheries and Aquatic Resources – For exporters of fish and fish products
Bureau of Animal Industry – For exporters of animals and animal product and by-products
Bureau of Plant Industry – For exporters of plants and plant products
Bureau of Forest Development – For exporters of forest products
Some businesses require additional registration with specialized agencies:

55. ThankyouThankyou