Entrep Report

A Very Clear Purpose
A Very Compelling Vision

Not By Any Other Name
A Company of Angels
A Very Good Business Plan
Organizing and Structuring the
Enterprise
A Merry Band of Men and Women
The entrepreneur must be
very clear about the purpose in
establishing the enterprise.
The personal purpose of the
entrepreneur is his or her
personal mission.
The enterprise must state its mission
statement clearly for:
The sake of the costumers being

wooed
The investors who need to know
what they are getting into
The financiers evaluating the
enterprise
The government functionaries who
must regulate the activities of
industries and businesses.
The entrepreneur must establish an
enterprise on the basis of a very
exciting business concept leading to a
grand vision.
The entrepreneur must prevent a
winning business concept that
manifests tremendous future
possibilities.
The entrepreneur must choose
a fitting name for the
enterprise.
The company name must
project its very desired image.
In livelihood undertakings or
microenterprises, it is common for
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.
The entrepreneur must choose the
company of angels, partners who are
well-meaning and like-minded
Angel investors provide capital to
entrepreneurs knowing that there are
risks involved.
Angel industrial partners are people
who can contribute their expertise,
experience, technology, contacts, and
good character that will enable the
enterprise to succeed.
It is a wise thing to do in order to chart
the course of the business properly and
to focus the efforts of the entrepreneur.
It is important to know what the
business plans purpose is for whom is
being written (target audience), and
what would be the coverage of the
business plan (in terms of depth and
breadth)
The purpose of a business plan
are:
1. Entice partners, investors, and
bankers to fund a business
venture.
2. Communicate what the enterprise
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
Its probable risk
The business plan should begin with
business concept and the vision for the
enterprise in the next three to five years.
It should then declare the business purpose
or the mission statement of the enterprise
The business plan should proceed to an
enumeration of business objectives, key
result areas, and performance indicators.
An overall enterprise strategy should then
be articulated to show how the
performance indicators could be attained.
The business plan should contain
an executive summary about
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 is enough 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 offered and
why they are right for the market.
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 of the business
8. The operating budget, financial
projections and returns on investment
prospects
9. The risks in the business and the
contingency measures to counteract
them.
The business plan should then elaborate the
contents of the executive summary.
There should be a functional strategy that
would show how the desired results could be
obtained.
For the investors, they should be given
fearless forecast.
For the financial institutions and other
financiers, the financial statements must be
synthesized in order to capture both the upside
and downside prospects.
For the government readers, it should provide
compliance statements with all laws and
regulatory provisions.
The business 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
are composed of the following:
1. The current assets, which are
short-lived assets.
2. The long-lived or fixed assets.
3. The other assets.
The assets of the enterprise are

financed by liabilities. These
liabilities are composed of:
1. Current liabilities
2. Long term debt
3. Owners equity
The way the financial package is
designed is called capital structure of
the enterprise.
Sole proprietorship
The simplest and easiest enterprise to
organize
The owner or entrepreneur has a sole
control over the enterprise.
Clearances to be obtained in
order to get a permit are the ff.:
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
It is likewise the responsibility of any
enterprise to register its business
with the Bureau of Internal Revenue
(BIR) for taxation purposes. The
official receipts of the enterprise must
also be registered with the BIR. For a
sole proprietorship, the tax
identification number (TIN) of the
entrepreneur serves as the enterprise
TIN.
If two or 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 a
partnership.
2 types of partnerships based
on the liability of the partners:
1. General partnership is
composed of partners who are
liable individually and
collectively to all those who
have claims against them.
2. Limited partnership consist of
partners who have limited
liabilities while others in the
partnership have unlimited
liabilities.
The partnership should obtain
all the required government
clearances, permits, and
licenses. It should get:
A bank certificate of deposit
on the money contributions of
the partners
The approval for its
partnership name from the
Department of Trade and
Industry.
Corporation
Has a separate legal personality
quite distinct from the investors
who contributed money to the
enterprise.
Can be formed or incorporated by,
at least 5, or at most 15 natural
persons.
4 types of corporations:
1. Stock Corporation issues
capital stocks divided into
shares (or proportions of the
total capital).
2. Non-Stock Non-Profit
Corporation is organized to
carry out a purpose or
purposes other than generating
profits for investors. This
usually has a social mission.
3. Close Corporation has Articles
of Incorporation that limit the
ownership of issued stocks to at
most 20 persons.
4. Corporation Sole is a special
form of corporation allowed by
law, usually associated with
the clergy. It is a trusteeship
that is set up for the purpose of
administering and managing
the affairs, property, and
temporalities of a church or
group of clergy.
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.
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 needs
About teamwork

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A Very Clear Purpose

A Very Compelling Vision

The sake of the costumers being

The assets of the enterprise are

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