COLLEGE OF ENGINEERING AND ARCHITECTURE

GEC ELEC 2 – The Entrepreneurial Mind

Written Report in Start-up Operations, Getting Started in Business

TABLE OF CONTENTS

I. Introduction
- Business
- Understanding a Business
II. How to Start a Business by Yesh Quijano (2023)
- Come up with Business Idea
- Research the Market
- Decide on the Business Structure
- Business Planning
- Raise your Capital
- Choose a Strategic Business Location
- Business Registrations and Permits
- Open a Business Bank Account
- Set up an Accounting System
- Create a website
- Market and Promote your Business
III. Assessment (True or False)
IV. Reference

Rueda Street, Calbayog City

063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 I. Introduction
The term business refers to an organization or enterprising entity engaged in
commercial, industrial, or professional activities. The purpose of a business is to
organize some sort of economic production of goods or services. Businesses can be
for-profit entities or non-profit organizations fulfilling a charitable mission or furthering a
social cause. Businesses range in scale and scope from sole proprietorships to large,
international corporations.
The term business also refers to the efforts and activities undertaken by
individuals to produce and sell goods and services for profit.

Understanding a Business

The term business often refers to an entity that operates for commercial,
industrial, or professional reasons. The concept begins with an idea and a name, and
extensive market research may be required to determine how feasible it is to turn the
idea into a business.
Businesses often require business plans before operations begin. A business
plan is a formal document that outlines the company's goals and objectives and lists the
strategies and plans to achieve these goals and objectives. Business plans are
essential when you want to borrow capital to begin operations.
Determining the legal structure of the business is an important factor to consider,
since business owners may need to secure permits and licenses and follow registration
requirements to begin legal operations.
Corporations are considered to be juridical persons in many countries, meaning
that the business can own property, take on debt, and be sued in court.
II. Content and Discussion
How to Start a Business in the Philippines

Starting a business can be filled with opportunities and challenges, especially in a

vibrant economy like the Philippines, a country with an entrepreneurial spirit.

If you’re considering how to start a business in the Philippines, you’re joining the ranks
of an estimated 1 million entrepreneurs who launch their ventures here each year.

From crafting a compelling business idea to navigating the maze of business

registration, this guide will take you through each step to transform your entrepreneurial
dream into a thriving reality.

Step 1: Come up with a business idea

The spark of entrepreneurship starts with a great idea. But how do you know if
your idea has the power to create a successful business in the busy Philippine
market?

At Trailblazer, we believe that the key to a successful business is its ability to

solve problems, meet needs, and add value for its customers. To help you find a
suitable business idea, ask yourself these critical questions:

 What are my interests or hobbies that I could turn into a business?

Rueda Street, Calbayog City
Samar, Philippines 6710  What unique skills or expertise could I capitalize on?
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  Is there a hole in the market that my company could fill?
 Who would benefit from what I have to offer?
 What would make my business stand out from the crowd or give it
something extra?
There are many business opportunities in the Philippines for people who want to
make their mark.

Step 2: Research the market

Once you have a good idea for a business, the next important step is to research
the market. This process will give you a deeper understanding of your potential
customers, competitors, and overall industry dynamics. Here are some essential
questions to guide your market research:

 Who are my target customers? What are their demographics, needs, and
buying behaviors?
 Who are my competitors? What are they doing well, and where are their
weaknesses?
 What is the size of my market? Is it growing or shrinking?
 What trends are shaping my industry? How might they impact my
business?
 How does my business differentiate itself from the competition?
 What are the potential opportunities and threats in my market?
 What are the pricing models in my industry? Where does my product or
service fit in?
Effective market research can distinguish between a business that does well and
one that needs help getting off the ground. It gives you essential information to
help you make intelligent decisions, shape your marketing plans, and set up your
business for success in the busy Philippine market.

Step 3: Decide on the business structure

Your choice of business structure will affect your business in many ways,
including taxes, legal liability, day-to-day operations, and the chance it will grow.
There are three main ways to set up a business in the Philippines:

 Sole proprietorship. This is the simplest form of business entity, where one
person owns and manages the business. It’s the easiest and least
expensive to set up, but the owner is personally liable for all debts and
obligations of the company.
 Partnership. This involves two or more people agreeing to share a
business’s profits and losses. A partnership can be a general partnership,
where all partners share equally in rights and liabilities, or a limited
partnership, where one or more partners have limited liability but cannot
participate in management decisions.
 Corporation. This legal entity is separate from its owners, providing them
limited liability. It requires more paperwork and is more expensive to set
up than a sole proprietorship or partnership. However, it’s often preferred
Rueda Street, Calbayog City
063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 for larger businesses or those seeking outside investment due to its
structure and legal protection.
When choosing a business structure, you should consider your business
objectives, how you feel about taking risks, how much money you need, and how
you like running your business. It would be best to talk to a business advisor or
an attorney to determine each choice’s legal and financial effects. Remember
that having the proper structure can give your business in the Philippines a
strong base.

Step 4: Business Planning

What is a business plan?

A business plan is a formal written document that meticulously outlines your business
goals and how you intend to achieve them. It serves as a roadmap guiding your
business toward growth and success. It details what you want to do and explains how
you plan to do it, making it an indispensable tool in your entrepreneurial toolkit.

Why do you need a business proposal?

A business blueprint isn’t merely a document; it’s the compass that guides your
business journey. Here are a few compelling reasons why you need one:

 Clarity: It helps crystalize your business idea, giving you a clear vision of what
you want to achieve and how you intend to do it.
 Strategy: It’s where you establish your business strategies and action plans.
From marketing to operations, it’s the document where you detail the tactics
to drive your business toward its goals.
 Financing: A well-crafted business plan is crucial for entrepreneurs seeking
external funding. It demonstrates to potential investors or financial institutions
that you’ve thought things through and have a viable business proposition.
 Benchmarking: It serves as a baseline for tracking your progress and making
necessary adjustments as your business evolves.
 Communication: It’s an effective tool to communicate your business vision,
mission, and strategies to your team, ensuring everyone is aligned and
working towards the same objectives.
What to avoid in your business plan?
As important as a business plan is, it’s just as important to know what to avoid when
writing it. Here are a few mistakes that people often make:

 Overly optimistic projections: It’s great to be hopeful, but unrealistic sales and
revenue forecasts can harm your credibility. Always base your predictions on
reliable data and plausible assumptions.
 Ignoring the Competition: No business operates in a vacuum. Ensure you’ve
thoroughly analyzed your competitors, understanding their strengths and
weaknesses.
 Lack of Clarity: A business strategic plan is not the place for jargon or ambiguity.
Keep your language straightforward and your objectives clear.
 No Marketing Plan: A great product or service is part of the story. Ensure you
have a robust marketing strategy to reach your target audience.
Rueda Street, Calbayog City
063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
  Skipping the Executive Summary: The first section potential investors will read is
a business synopsis. Skipping or not giving it due importance could make or
break their interest.
Business plan format
The format can vary, but here’s a typical outline:

 Executive Summary
 Company Description
 Market Analysis
 Organization and Management
 Service or Product Line
 Marketing and Sales Strategy
 Funding Request (if applicable)
 Financial Projections
 Appendices

Step 5: Raise your capital

To bring your business idea to life, you’ll need capital. Your business plan should help
you figure out how much money you’ll need to start and run your business until it turns a
profit. Here are some places you could get money:

 Small business grants. Small business grants are funds given to a business that
doesn’t have to be paid back. Some government agencies and private
organizations in the Philippines offer grants to help micro businesses, especially
those in specific industries or regions.
 Small business loans. These are loans specifically designed for small
businesses. Banks, microfinance institutions, and government agencies like the
Development Bank of the Philippines (DBP) offer loans with terms favorable to
startups.
 Personal Loans. These are loans that individuals obtain for personal use but can
also be used to finance a business. They can be accessed from banks and other
financial institutions, though interest rates may be higher than for small business
loans.
 Crowdfunding. This involves raising small amounts of money from many people,
typically via the Internet. Platforms like Kickstarter or local sites like The Spark
Project allow you to pitch your business idea to potential backers.
 Friends and Family. Often, friends and family are willing to invest in your
business by giving you a loan or buying a share.

Step 6: Choose a strategic business location

Location can make or break a business. The right place can give your business the
exposure it needs, bring in the customers you want, and affect your operating costs.
When starting a business in the Philippines, thinking carefully about a strategic location
is essential.

Rueda Street, Calbayog City

063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 Think about what your business is about. For example, a retail store would benefit from
high foot traffic, while a manufacturing business may need ample space for equipment
and easy access to transport links.

Here are some factors to keep in mind:

Demographics

Ensure your location aligns with the demographics of your target market. The
area’s population size, income level, and lifestyle habits can significantly affect your
business’s success.

Accessibility

How easy is it for customers and employees to reach your business? Look at the
transport links, parking availability, and overall convenience.

Competition

Are there similar businesses nearby? Sometimes being close to competitors can
be beneficial, but other times it can lead to market saturation.

Cost

Can your business afford the rent or purchase price, utilities, taxes, and other
expenses associated with the location?

Local Laws and Regulations

Different areas may have specific zoning laws and business regulations. Make
sure your business activities are allowed in the chosen location.

Growth Potential

Does the location offer room for business growth?

Remember that a good location can give your business an edge. Take your time
researching, look at more than one site, and ask a professional for help if needed.
Choose carefully because your location is more than just an address—it’s where your
business objectives come to life.

Step 7: Business registrations and permits

Once you’ve secured your capital and chosen your location, it’s time to legitimize your
business. This involves applying for the necessary permits and licenses to operate
legally in the Philippines.

Apply For Business Permits and Licenses

Businesses require different permits, but all companies need a mayor’s or business
permit from their local city or municipality.
Rueda Street, Calbayog City
063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
  Department of Trade and Industry (DTI): Acquiring exclusive rights to your
business name necessitates registration with the appropriate agency. This step is
mandatory for sole proprietors. You can complete your registration at any
Department of Trade and Industry (DTI) Regional or Provincial office. A directory
of these offices is available on the Contact Us page. Alternatively, you can
register online at www.bnrs.dti.gov.ph. For those outside Metro Manila,
applications for Business names can be filed at the nearest DTI regional or
provincial offices. The provided link can access the Sole Proprietorship Business
Name registration application form. Download, fill out the form, and present it to
your local DTI office for walk-in applications.
 Securities and Exchange Commission (SEC): For a Partnership or Corporation to
be recognized as a legal or judicial entity, it’s critical to register with the
Securities and Exchange Commission (SEC).
Register at: Head Office: Secretariat Building, PICC Complex, Roxas Boulevard,
Pasay City, 1307
Trunkline No.: (+632) 8818-0921
Email: [email protected]
Website: www.sec.gov.ph (for online registration)
 Cooperative Development Authority (CDA): All cooperatives must register with
the CDA per Republic Act 6938/6939. You may register at: Cooperative
Development Authority (CDA)
6/F Benlor Building, 1184 Quezon Avenue, Quezon City
Tel. No.: (+632) 373.6895
Website: www.cda.gov.ph
 Local Government: Besides the Mayor’s Permit, your local government unit may
require you to obtain a Barangay Clearance from your local barangay office. This
confirms that you’ve asked permission to operate your business in the
community. The process of registration can differ across various cities and
municipalities. To access a comprehensive list of Local Government Units
(LGUs), kindly refer to the Department of Interior and Local Government website
or visit http://lgu201.dilg.gov.ph/.
Register with the Bureau of Internal Revenue (BIR)
All businesses must register with the BIR to obtain a Tax Identification Number
(TIN), register their books of accounts, secure BIR-printed invoices and receipts,
and know their tax type and due dates.

Register with the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund
Once you hire employees, you must register your business with the Social Security
System, the Philippine Health Insurance Corporation (PhilHealth), and the Home
Development Mutual Fund (Pag-IBIG Fund).

These provide your employees with benefits, healthcare, and housing loan programs.

Register with the Department of Labor and Employment (DOLE)

You must register your business with DOLE if you employ five or more workers. This
ensures you comply with the country’s labor laws and standards.

Step 8: Open a business bank account

Having a separate bank account for your owned business is not just a good idea—it’s a
must.
Rueda Street, It City
Calbayog keeps your business transactions different from your own. This makes it easier
063 055 5339857
Samar, Philippines 6710
to do your taxes and gives you a clearer picture of your business’s financial health.
[email protected] www.nwssu.edu.ph
 Step 9: Set up an accounting system
When running a business, it is essential to have an effective accounting system in
place. It helps you keep track of your income and costs, ensure you’re following the law,
and make intelligent business decisions. Here’s how to set up your business’s
accounting system in the Philippines:

 Choose the Right Accounting Method - Decide if you’ll use cash accounting
(recording transactions when cash changes hands) or accrual accounting
(recording transactions when they occur, regardless of payment). Small
businesses often start with cash accounting due to its simplicity.
 Choose the Right Accounting Software - To make things easier, use accounting
software. The right software for you will depend on your needs, budget, and
business size. QuickBooks, Xero, and FreshBooks are all popular choices.
 Set Up Your Chart of Accounts - This list of accounts will categorize your
transactions. Common accounts include assets, liabilities, equity, income, and
expenses.
 Document Your Financial Policies - Documenting your financial policies helps
ensure consistency and transparency in handling your business’s financial
matters.
 Maintain Regular Financial Reviews - Review your financial statements regularly
to see how your business is doing financially and make intelligent choices.

Remember that setting up an accounting system might seem hard initially, but it’s
necessary if you want to manage your business’s finances well. If you need help,
consider hiring an accountant or bookkeeper. Your business will be more likely to make
money if you work hard at this step.

Step 10: Create a website

In this digital age, your business needs to have a website. It not only makes you more
known, but it also gives you an edge over your competitors.

Step 11: Market and promote your business

Once your business is ready, it’s time to make some noise! Effective marketing can
boost your visibility, attract potential customers, and grow your business. Here’s how to
market and promote your business in the Philippines:

Online Marketing Strategies:

Social media

Use sites like Facebook, Instagram, LinkedIn, and Twitter to connect with
customers, share your content, and promote your products or services. Engage
with your audience often to build loyalty and relationships.

Email marketing

Have people who visit your website sign up for your email list so you can send
them updates, special offers, and other helpful information. It’s a great way to
remind them of your business.
Rueda Street, Calbayog City
063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 Content marketing

Regularly add valuable and relevant content to your blog or YouTube channel.
This can boost your SEO ranking, show that you are an expert in your field, and
bring more people to your site.

Paid advertising

Pay-per-click advertising on Google AdWords or Facebook Ads to reach potential

customers.

You can incorporate these successful and proven online marketing tactics into
your business strategy.

Offline Marketing Strategies

Networking

Attend industry conferences, trade shows, or local community events to meet

people in your field. This can help you make valuable business connections and
attract people who might buy from you.

Print Media

If you want to reach more people, you could use brochures, flyers, or ads in local
newspapers.

Promotions and Events

To attract new customers, host events, or offer special deals.

Partnerships

Work with businesses similar to yours to help promote each other.

Remember that marketing isn’t about selling. It’s about getting the right message to the
right people. Be consistent, develop new ideas, and listen to your customers’ words.
Your marketing efforts in the Philippines may take a while to pay off, but if you are
patient and keep at it, they can make a big difference in the success of your business
there.

III. Assessment (True or False)

1. Businesses can be for-profit entities or non-profit organizations fulfilling a

charitable mission or furthering a social cause.

2. Business often refers to an entity that operates for commercial, industrial, or

professional reasons.

Rueda Street, Calbayog City

063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 3. Step 3: Decide on the Business Structure, this process will give you a deeper

understanding of your potential customers, competitors, and overall industry

dynamics.

4. A business plan is a formal written document that meticulously outlines your

business goals and how you intend to achieve them.

5. Step 5: Raise your Capital. This process is the right place to give your business

the exposure it needs, bring in the customers you want, and affect your operating

costs.

6. Accessibility is how different areas may have specific zoning laws and business

regulations. Make sure your business activities are allowed in the chosen

location.

7. Step 7: Business registrations and Permits involve applying for the necessary

permits and licenses to operate legally in the Philippines.

8. Department of Trade and Industry (DTI): Acquiring exclusive rights to your

business name necessitates registration with the appropriate agency. This step is

mandatory for sole proprietors.

9. Step 8: Open a business bank account, is essential to have an effective

accounting system in place. It helps you keep track of your income and costs,

ensure you’re following the law, and make intelligent business decisions.

10. Step 11: Market and promote your business, is about getting the right message

to the right people.

Answer Key:

1. True

2. True

3. False, step 2: Research the market

4. True

5. False, step 6: choose a strategic business location

Rueda Street, Calbayog City
063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 6. False, Local laws and regulations

7. True

8. True

9. False, step 9: set up an accounting system

10. True

Rueda Street, Calbayog City

063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph
 References

Hayes, A. (2024, February 29). WHAT IS A BUSINESS? UNDERSTANDING DIFFERENT

TYPES AND COMPANY SIZES. INVESTOPEDIA.

https://www.investopedia.com/terms/b/business.asp

Quijano, Y. (2023, August 8). HOW TO START A BUSINESS IN THE PHILIPPINES.

TRAILBLAZER. https://trailblazer.com.ph/how-to-start-a-business-in-the-philippines/

Rueda Street, Calbayog City

063 055 5339857
Samar, Philippines 6710

[email protected] www.nwssu.edu.ph