Development of

Business Plan
Learning Objective:
a. Recognize a
potential market
 Factors to Consider in
Starting a Business
 Entrepreneurial opportunities
 Financial stability
 Self-fulfilment
 Helps the family
 Provide employment to others
 Ways to Start a New Venture:
Most Frequently Used Forms
Start-up – a company which is recently formed,
where the founder establishes a completely new
business from scratch
Buying an existing business - acquiring either the
shares of an existing company or all of the assets
of an existing enterprise.
 Franchising – when the “owner of the
company that already has a successful
product or service, licenses its trademark, trade
name and methods of doing business to others in
exchange for an initial franchise fee and royalty
payments
Jollibee/Mcdo Shakeys
Mang Inasal Alphamart
Ricky Reyes Salon 7-eleven
Important Factors to
Consider Before an
Entrepreneur can
Actually Begin an
Enterprise
 1. Focus and Direction –
objective grasp of the business
and where it will be headed many
years from the start of operation.
There should be a clear and
documented vision-mission and
strategies to begin with. Start right
by “beginning with the end in mind.”
 2. Sources and Capital –
can be from personal funds,
family and friends, retirement
account, banks/financial
institutions, government loan
and/or stock market
 3. Good Network – like
associations and professional
groups, childhood friends, family
members, former classmates can be
drivers to build self-confidence and
direction, providers of information that
are not readily accessible to others,
suppliers of raw materials as well as
mentors and coaches.
 4. Legal Requirements – know
the laws and regulations that
govern the type of business that will be
opened to avoid major problems that
can arise if legal requirements are
overlooked like copyright and patent
laws, environment and sanitation
regulations as well as labor codes.
 5. Degree of Risk – like
limited market, stiff
competition, high cost of
financing the business and few
supply of needed labor
 6. Research and Development –
the presence of new technology,
science and knowledge transfer from
universities and public research centers
to new and growing businesses, support
for the creation of new-technology
based ventures are good indicators to
start a business in the area
 7. Personal competencies – like
creativity, opportunity seeking, self-
confidence, persistence,
commitment, risk-taking and
technical background as well as
related experiences needed to run a
business
8. Availability of Resources –
pertaining to raw materials,
human resources and
machineries and equipment
 Philippines Potential Sources of Opportunities
1. Positive attitude of Filipino workers
2. Low labor cost
3. Literacy of the workforce
4. Large market potential because of our big population
size, changing preferences and lifestyle of Filipino
consumers
5. Abundance of natural resources
6. Availability of competent middle management and
technical talents
Classification of Enterprise
According to Size
 Micro enterprise – asset size not
exceeding P50,000, a home based
enterprise, operating in makeshift or
temporary quarters, the owner heads
the enterprise and employs from one
and not more than 10 people like
vending food such as taho, puto,
fishballs etc
 Cottage industry – asset of
P250,000 to P500,000,
homebased, often managed and
operated by members of family like
subcontractors of shoes and slippers,
food manufacturers of peanut
butter/coco jam or pastillas, vases,
candles and lanterns
 Small enterprise – has an asset of
P500,000 to P2.5million, owned by
an individual or grouped and has enough
resources to continue operating, employs
10 to 20 people like groceries, bakeshops,
beauty salons, medical/dental clinics, toy
makers, jeepney manufacturers and
travel/tour agencies
 Medium enterprise – an asset of 5 to
20million, employs 100 or more,
owned by a single individual, business
partners, or a corporation people like fine
dining restaurants with branches,
computer importer-dealers, garment
manufacturers, human resource providers
and private educational institutions
 Large enterprise – an asset of
20million or more, often owned and
managed by a corporation, employs 100 or
more workers, its board of directors is
responsible for its governance thru its chief
operating officer, like big fast food chains,
large department stores, big bookstores,
family-owned commercial banks and
insurance companies
Forms of Businesses
Based on Ownership
 According to Industry
Classification: Types of
Businesses Based on the
Philippine Standard Industrial
Classification (PSIC)
 1. Agriculture, Poultry and
Fishing – This section includes
the exploitation of vegetables and
animal natural resources, growing
crops, raising and breeding of animals,
harvesting of timber and other plants,
animals or animal products from a farm
or their natural habitat.
 2. Mining and Quarrying –
This section includes the
extraction of minerals occurring
naturally as solids (coal), liquids
(petroleum) or gases (natural gas).
Extraction can be achieved by different
method such as underground or surface
mining, sea bed mining etc.
 3. Manufacturing –
This section includes the
physical or chemical
transformation of material
substances or components
into new product.
 4. Electricity, Gas, Steam and
Air-Conditioning Supply – This
section includes the activity of
providing electric power, natural
gas, steam, bot water and the like
through a permanent infrastructure
of lines, mains and pipes.
 5. Water Supply, Sewerage
Waste Management – This
section includes activities related to
the management of various forms of
waste such as solid or non-solid
industrial or household waste as well
as contaminated sites.
 6. Construction – This section
includes general construction and
specialized construction activities for
buildings and civil engineering works. It
includes new work, repair, additions
and alterations, the creation of
prefabricated buildings or structures on
the site.
 7. Wholesale and Retail
Trade, Repair of Motor
Vehicles and Motorcycles – This
section includes wholesale and
retail sale of any type of goods and
the rendering services incidental to
the sale of these goods.
 8. Transportation and Storage
– This section includes the
provision of passenger or freight
transport whether scheduled or not,
by rail, pipeline, road, water and
associated activities such as terminal
and parking facilities, cargo
handling storage, etc.
 9. Accommodation and Food
Service Activities – This section
includes the provision of short stay
accommodation for visitors and
other travelers and the provision of
complete meal and drinks fit for the
immediate consumption.
 10. Information and
Communication – This
section includes financial service
activities, including insurance
and pension funding and
activities to support financial
services.
 11. Real Estate Activities – This
section includes acting as
lessors, agents and/or brokers in one
or more of the following selling or
buying real estate, renting real estate,
providing other estate services such as
appraising real estate or acting as real
estate agents.
 12. Professional, Scientific and
Technical Activities – This
section includes specialized
professional, scientific and technical
activities. Those activities require a
high degree of training and make
specialized knowledge and skills
available to users.
 13. Administrative and
Support Service Activities –
This section includes a variety of
activities that support general
business operations.
 14. Arts, Entertainment and
Recreation – This section includes
a wide ranges of activities to meet varied
cultural entertainment and recreational
interest of the general public including
live performances, operation of museum
sites, sports, gambling and recreational
activities.
 15. Public Administration and Defense,
Compulsory Social Security – This section
includes activities of governmental nature, normally
carried out by the public administration. This
includes the enactment and judicial interpretation
of laws and their pursuant regulation, as well as the
administration of programmes on them, legislative
activities, taxation, national defence, public order
and safety, immigration services, foreign affairs and
the administration of government programme.
Choose a business in your
community and explain what
category of entrepreneur size it
belongs.
Thank you and God Bless you! 