Introduction to
Business
Implementation
ARTHUR MENDOZA JR.
A Very Clear
Purpose
A Very Clear
Purpose
or
Generate Profit Feed the Family
A Very Clear
Purpose
or
Making a difference
in the industry
Actualizing the Self
AS TIME PASSES, THE ENTERPRISES
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 investors who
The sake of the
need to know that
customers being
they are getting
wooed.
into.
The government
functionaries who
The financiers must regulate the
evaluating the activities of
enterprise. industries and
businesses.
A Very
Compelling
Vision
A Very
Compelling
Vision
exciting business grand vision
concept
Not by Any
Other Name
Not by Any
Other Name DOSAN
TECH
SAMSAN
TECH CHULSAN
TECH
YONGSAN
TECH
A Company
of Angels
"lone-wolf"
A Company of
Angels
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 their favorable character
assessment of the entrepreneur.
A Very Good
Business
Plan
PURPOSES OF A
BUSINESS PLAN:
1. Entice partners, investors, and
bankers to fund a business
venture.
2. Communicate what the
enterprises is all about, what
market it wants to serve.
3. Show what financial returns it
could muster.
THE BUSINESS PLAN
SHOULD CONTAIN
IMPORTANT
INFORMATION:
The business itself Its market potential
The organizers Its target market
The management and Its projected sales,
technical people expenses, and profits
The financial structure Its probable risks
VISION MISSION
THE BUSINESS
PLAN SHOULD THIS COULD BE
BEGIN WITH THE ACCOMPANIED BY
BUSINESS A STATEMENT OF
CONCEPT AND THE VALUES OR
VISION FOR THE BUSINESS
ENTERPRISE IN THE PHILOSOPHY
NEXT X YEARS.
CONCLUDING PORTION OF THE BUSINESS
PLAN SHOULD HIGHLIGHT THE KEY MESSAGES
FOR THE INTENDED READERS OF THE PLAN
1. For the investors, they should be given "fearless forecasts on expected
profits, dividends, and market values. The rights and obligations of
investors must be spelled out.
2. For the financial institutions and other financiers, the financial statements
must be synthesized in order to capture both the upside and downside
prospects. Due diligence must be evident in the analyzes and conclusions
made.
3. For the government readers, the business plan should provide compliance
statements with all laws and regulatory provisions
Organizing
and
Structuring
the
Enterprise
Organizing and
Structuring the THE BUSINESS PLAN MUST
Enterprise
BE ABLE TO ESTIMATE THE
CAPITAL REQUIRED BY THE
ENTERPRISE.
Assets Liabilities
The current assets, which are short-
lived assets. They are composed of
cash, inventory, accounts,
receivables, and other current assets.
The long-lived or fixed assets.
They are composed of property,
plant and equipment.
Assets The
composed
other
of
assets. They
organizational
are
and
pre-operating expenses.
Current liabilities such as
suppliers' credit and other
short-term credit.
Long term debt
Owner's equity
Liabilities
Capital Structure
of the Enterprise
SOLE PARTNERSHIP CORPORATION
PROPRIETORSHIP
SOLE PROPRIETORSHIP IS
MANDATED BY LAW TO
REGISTER THE BUSINESS WITH
THE PROPER AUTHORITIES
Department of Trade and Industry (DTI) or
Securities and Exchange Commission (SEC)
Barangay Permit
Mayor's Permit or Municipal License
Bureau of Internal Revenue (BIR)
Philippine Mandatory Employee Benefits and Contributions -
Social Security System (SSS), Philhealth and Pagibig
BUREAU OF
INTERNAL
REVENUE
TAX
OFFICIAL IDENTIFICATION
RECEIPT NUMBER (TIN)
PARTNERSHIP
HOW MANY PERSONS CAN
CONSTITUTE A
PARTNERSHIP?
General Partnership
Partnership
composed of partners who are liable
individually and collectively to all those who
have claims against them
consists of partners who have limited liabilities while
others in the partnership have unlimited liabilities.
LIMITED PARTNER is not liable for all the
obligations of the partnership beyond his or her
prorated capital contribution to the partnership.
The law requires that there must be at least one
general partner in a limited parnership to
assume that unlimited liabilities. Limited Partnership
The partnership should obtain all the
required government clearances and
permits, and licenses. It should get:
a bank certificate of deposit on the money
contribution 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 Article of Partnership with
the Securities and Exchange Commission (SEC)
CORPORATION
HOW MANY PERSONS CAN
CONSTITUTE A
CORPORATION?
Corporation
A corporation can be formed or
incorporated by, at least five, or at most 15
natural persons.
According to Philippine law, the majority of their incorporations
must be residents of the Philippines.
However, there is no limit to the number of natural or juridical
persons who can invest in the corporation
FOUR (4) TYPES OF CORPORATION
Stock Corporation Non-Stock Corporation
Non-Profit Coorporation
issues capital stocks organized to carry out a
purpose or purposes other than
divided into shares
generating profits for investors
Close Corporation Corporation Sole
limit the ownership of a special form of corporation
issued stocks to at the allowed by law, usually
most 20 persons associated with the clergy
35% of income before taxes in the Philippines
A Merry
Band of Men
and Women
The Perfect
Team
L
SKILLS OW ED MO
HU R ESIGN
KN
GE
D
DERS
LEA
HI
P
about customers
about operations
about competition
about financing needs
about teamwork
