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CHAPTER 6 Introduction To Business Implementation

The document discusses key aspects of business implementation and creating a good business plan. It emphasizes having a clear purpose and compelling vision for the business. It also stresses the importance of choosing a fitting name, organizing the enterprise through proper structures like sole proprietorship, partnership, or corporation. Finally, it highlights that a good business plan should entice investors, communicate the business details, and show potential financial returns through projections. The plan must estimate capital needs and outline management and operations.

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Joban Las Pinyas
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370 views

CHAPTER 6 Introduction To Business Implementation

The document discusses key aspects of business implementation and creating a good business plan. It emphasizes having a clear purpose and compelling vision for the business. It also stresses the importance of choosing a fitting name, organizing the enterprise through proper structures like sole proprietorship, partnership, or corporation. Finally, it highlights that a good business plan should entice investors, communicate the business details, and show potential financial returns through projections. The plan must estimate capital needs and outline management and operations.

Uploaded by

Joban Las Pinyas
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE HENTRE (ENTREPRENEURSHIP)

CHAPTER 6 : Introduction To Business Implementation

Objectives:
1. Business Implementation.
2. How to create a Very Good Business Plan

A Very Clear Purpose

The entrepreneur must be very clear about the purpose in establishing the
enterprise. The personal purpose of the entrepreneurship is his or her personal
missions.
The enterprise must state its mission statements clearly for:
 The sake of the customers being wooed;
 The investors who need to know what they are getting into;
 The financiers evaluating the enterprises; and
 The government functionaries who must regulate the activities of industries and
business.
A Very Compelling Vision
The entrepreneur must establish an enterprise on the basis of a very
exciting business concept leading to a grand vision. If the business is just like any
other business in the marketplace, customers will not take notice.

The Jollibee Business Concept


When Jollibee decided to challenge the giant McDonald’s in the market, it brought the Filipino taste to
hamburgers. For the matter, it introduced a lot of Filipino dishes not traditionally sold in hamburger joints. Jollibee
observed in their market research that Filipino consumers smelled their burgers before eating them. The logic is
obvious the nose can smell a thousand aromas while the tongue can only distinguished four taste (sweet, sour,
salty, and bitter). Jollibee knew that good taste is a function of good smell. Their tag line, “Langhap sarap” that
roughly translate to “You can savor its good taste from its great aroma” says it all. Jollibee also came up with a
child-friendly name and as endearing mascot to accompany the name. Strategically, Jollibee decided to locate
two or three outlets to “surround” McDonalds. The rest is history.
Jollibee came up with a differentiated business concept that won the hearts, minds, and wallets of Filipino
consumers. Although a latecomer in the industry compared to McDonald’s and Tropical Hut, it definitely bested
them all. However, even a good business concepts is not good enough in the long run. The entrepreneur must be
able to see five to ten years down the road where the business might go. The entrepreneur must have a
compelling vision of the enterprise to “put fire in the belly” while pursuing “that impossible dream.” Well, it should
not really be impossible. That is just an exaggeration to approximate that “big, hold, and audacious” goal that
would obsess the entrepreneur “like a maddened zealot.” For Jollibee, its initial vision might have been to
outnumber and outgun McDonald’s. Then, it might have been to totally blanket the country. Next, it envisioned
a global presence. The dream just kept getting bigger and bolder. But that is what a compelling vision is all about.

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 communicates what the company is all about and what
its products are all about.
A Company by Any Other Angels
In livelihood undertaking or microenterprises. It is common 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 pop” affair.
A Very Good Business Plan
MODULE HENTRE (ENTREPRENEURSHIP)

The purposes of a business plan are:


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 about the following:
 The business itself;
 The organizers;
 The management and technical people;
 The financial structure;
 Its market potential;
 Its target market;
 Its projected sales, expenses, and profits; and
 Its profitable risks.

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 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 outsourcing
subcontracting, franchising and licensing agreements;
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.
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 asset, which are short-lived assets. They are composed of cash,
inventory, accounts receivables, and other current assets.
2. The long-lived or fixed assets. They are composed of property, plant and
equipment.
3. The other assets. They are composed of organizational and pre-operating
expenses.
The simplest and easiest enterprise to organize is the sole proprietorship. In this structure,
the owner or entrepreneur has sole control over the enterprise. He or she reaps all
the profits and also, all the losses
The sole proprietorship 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.
MODULE HENTRE (ENTREPRENEURSHIP)

Before getting this permit, there are clearances that must be obtain. These are the
following:
 Barangay clearance
 Fire safety clearance
 Certificate of electrical inspection
 Certificate of occupancy
 Department of Trade and Industry (DTI) certificate
 Lease contract if space is leased
 Locational clearance
If two more persons bind themselves into a contract to contribute money, property and
expertise in a common venture with the intention of dividing the profits among themselves,
then they would have entered into a partnership. There are two types of partnership based
on the liability of the partners: general partnership and limited partnership.
A General partnership is composed of partners who are liable individually and
collectively to all those who have claims against them.
A limited partnership consist of partners who have limited liabilities while others
in the partnership have unlimited liabilities.
The third form of business organization is the corporation. Like the partnership, the
corporation also has a separate legal personality quite distinct from the investors who
contributed money to be enterprise.

There are four types of corporations, which are as follows:


1. Stock Corporation. The Stock Corporation issues capital stocks divided into
shares. Based on the submission of Articles of Incorporation to the Securities and
Exchange Commission, the corporation is authorized to rate capital that has a
corresponding number of shares.
2. Non-Stock Non-Profit- Corporation. The Non-Stock Corporation is organized to
carry out a purpose or purposes other than generating profits for investors.
3. Close Organization. The Close Organization 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 special form of corporation allowed by
law, usually associated with the clergy.
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 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 fast:
 About customers
 About operations
 About competition
 About financing need
 About teamwork
MODULE HENTRE (ENTREPRENEURSHIP)

 Please refer to the link below for a Documentary about: business


implementation:https://www.youtube.com/watch?v=jjxG2-m436Y
 Please refer to the link below for a Documentary about: how to create very
good business plan: https://www.youtube.com/watch?v=x0y3VgjhGw0
 Please refer to the link below for a Documentary about: example for business
plan how to write your own
https://www.youtube.com/watch?v=Fqch5OrUPvA

Reference:
www.rexpublishing.com.ph
Entrepreneurship by Dr. Eduardo A. Morato Jr.

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