9. Business Implementation

Subject: Entrepreneurship 11
Topic: Business Implementation

Teacher: Renlie Jana Pascua-Pedronan
Profit is the amount you gain after selling your product. In computing your profit,
you just simply follow this formula:
Gross Profit = Sales - Cost of Goods Sold
The gross profit represents the difference between net sales and cost of sales.
Variable costs are those things that change based on the amount of product being
made and are incurred as a direct result of producing the product.
Variable costs include:

1. Materials used
2. Direct labor
3. Packaging
4. Freight
5. Plant supervisor salaries
6. Utilities for a plant or a warehouse
7. Depreciation expense on production equipment
8. Machinery
Fixed costs generally are more static in nature. They include:

1. Office expenses such as supplies, utilities, a telephone for the office, etc.
2. Salaries and wages of office staff, salespeople, officers and owners
3. Payroll taxes and employee benefits
4. Advertising, promotional and other sales expenses
5. Insurance
6. Auto expenses for salespeople
7. Professional fees
8. Rent
Guidelines for successful business plan implementation:

1. Objectives- the entrepreneur should have a clear idea on what is his purpose of
putting up his enterprise.
2. Tasks- this means that the entrepreneur must know what the tasks are he has to
perform in order that his objectives will be realized.
3. Time allocation- This means that the entrepreneur should have a timetable or a
schedule to follow every task, so that it will be accomplish on time and realize his
objective.
4. Progress- This means that the entrepreneur should monitor the development of
the tasks and the accomplishment of the objective
In Operating a business, the entrepreneur should first consult professional for

advices, like accountants or consultants from small enterprises. In your case, you
can consult your teacher in entrepreneurship or anyone you think that could help
you.
The following are the basic requirements to start a business in the Philippines:
• Securities and Exchange Commission (SEC) Registration-for
partnership or Corporation
• Department of Trade and Industry (DTI) Registration- for your
business tradename
• Mayor’s Business Permit- for getting the license to operate in the city or
municipality and payment of your local business taxes.
• Bureau of Internal Revenue (BIR) Registration - for getting TIN, official
receipts and invoices, registering your books of accounts and paying your
national Internal revenue taxes
• SSS, PhilHealth, and Pag-Ibig Fund registration- for registering
yourself or company as an employer and for remitting your employees’
contribution together with your employer’s share
Other steps to follow before operating a Business are as follows:

1. Set up an accounting system or hire an accountant. Knowing how the business is
doing financially is important for planning and survival.
2. Advertise the business. No one will buy the products or services if customers do
not know that the company exists. You can make use of the social media.
3. Secure insurance for the business. Liability insurance protects the business in the
event of litigation. Consider life and disability insurance, health insurance and fire
insurance when you are leasing an office or storefront.
Keeping Business Records

Good record keeping can help protect the business, measure the
performance
and maximize profit.
Records are the source documents, both physical and electronic, that specify
transaction dates and amounts, legal agreements and private customer and
business details.
Developing system to log, store and dispose of records can benefit the
business. A systematic recording allows you to;
A. Plan and work more efficiently
B. Meet legal and tax requirements
C. Measure profit and performance
D. Protect your rights, and
E. Manage potential risks
Definition of Terms
Term Definition
Bookkeeping The process of recording business transactions in a
systematic and chronological manner. It is systematic
because it follows procedures and principles. It is
chronological because the transactions are recorded in order
of the date of occurrence.
Bookkeeper The person who is in-charge to record, maintain and update
business records from all sorts of financial transactions using
account title. The bookkeeper uses the Book of Accounts to
record the business transactions.
Book of The book of accounts are composed of the Journal and
Accounts Ledger.
Journal Referred to as the book or original entry
Ledger Referred to as the book of final entry
General Journal Is the most basic journal which provides columns for date,
account titles and explanations, folio or references and a
separate column for debit and credit entries
General Ledger Is a group of all accounts that can be found in the chart of
accounts. These accounts will be reflected in the trial balance
as a summary of all financial activities that have taken place
as recorded in the general journal and subsidiary
Asset Refers to resources with economic value that an individual,
corporation, or country owns or controls with the expectation
that it will provide a future benefit. An asset represents an
economic resource for a company or represents access that
other individuals or firms do not have. An economic resource
is something that is scarce and has the ability to produce
economic benefit by generating cash inflows or decreasing
cash outflows.
Liability Usually a sum of money. Liabilities are settled over time
through the transfer of economic benefits including money,
goods, or services. Liabilities include loans, accounts payable,
mortgages, deferred revenues, and accrued expenses. In
general, a liability is an obligation between one party and
another not yet completed or paid for.
Implementing the Business Plan is not that easy. It needs to be registered to make
it legal and record keeping gives a lot of benefits to the enterprise.

9. Business Implementation

Uploaded by

Copyright:

Available Formats

9. Business Implementation

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

9. Business Implementation

Uploaded by

Copyright:

Available Formats

Subject: Entrepreneurship 11

Topic: Business Implementation

Gross Profit = Sales - Cost of Goods Sold

Variable costs include:

Fixed costs generally are more static in nature. They include:

Guidelines for successful business plan implementation:

In Operating a business, the entrepreneur should first consult professional for

Other steps to follow before operating a Business are as follows:

Keeping Business Records

You might also like