Lesson 1

Download as pdf or txt
Download as pdf or txt
You are on page 1of 186

Lesson 1

Entrepreneurship
Entrepreneurship is the process
of designing, launching, and
running a new business which is
often initially a small business.
The people who create these
businesses are called
entrepreneurs.
Entrepreneurship
It is a firm that operates and
implements a combination of new
activities such as product
development, marketing, resources
for raw materials, manufacturing
approach, and new organizational
structures. (Schumpeter 1934 and
Dollinger (1995)
Employment
- It is an activity in
which one is engaged or
employed
- The extent or degree
to which a labor force is
employed
Let’s Compare!
Employee Entrepreneur

1. Steady schedule, salary 1. You can choose your


and benefits own projects and set
2. Don’t have much freedom your own schedule
and flexibilty over your 2. Sets his own goals,
work growth and development
3. A manager often tells an 3. Decides what to do and
employee what to do what to prioritize
Common Traits of Successful
Entrepreneurs

Proactive Have a sharp


Innovative
eye for
Agents of opporunity
Risk Taker
Change
Career Opportunities for
Entrepreneurship Graduate
Business Consultant

- Also known as Management


Analyst
- Identifies client’s problem and
find solutions for it
Business Consultant
Ex.
- When Mr. Tan helps to improve

business processes to do better and


will partner with executive
management to review their current
business operations processes and
make recommendations to improve
efficiency, enhance customer service,
and reduce company costs, he is a
business consultant.
Sales Manager

- Knows how to represent a


company and follow up leads

- Designing and implementing


strategic sales plans
Sales Manager
Ex.
- Mr. Go presented the new artistic
designs of Leo Arts and Designs in
the market and implemented his
strategic plans that will make the
designs to be the top of the mind
of the customers.
Fundraiser

- Raises money for a specific


purpose and meant not to
make profit but for
maintaining the organization
Fundraiser
Ex.
Maria is passionate in helping
others and oversee campaigns and
events to raise money and other
kinds of donations for an
organization. She ensures that
campaigns are effective by
researching potential donors.
Lesson 2:
Chapter 1 & 2
Parts of a
Business Plan
A business plan serves the entrepreneur who
must set a navigational course.
- It also serves the investors and cautious
financiers.
- It also serves the managers and staff of the
organization so that they will know the
strategies and program of the enterprise.
CONTENTS OF A BUSINESS PLAN:
I. Introduction
• The Business Concept and Business Model
• The Business Goals: Vision, Mission,
Objectives and Performance Targets
• The Business Offering and Justification
Business Concept
• It contains the essence of the enterprise in a
concise but powerful manner
• It stresses the value of the product being
offered.
Business Concept
Answers the following questions:
• What do you offer?
• Who do you offer it to?
• Why does your idea have value to this customers?
• How will you beat your competition?
• What differentiates you from the competition?
The Business Model
• A formulation on how the enterprise exactly
plans to make money out of the business.
Business Model
Key Partners (suppliers/distribution partners):
• Who are our key partners/suppliers?
• Which key resources are we acquiring from them?
Types of Partnership:
• Strategic alliance
• Competition
• Joint Ventures
• Buyer-Supplier Relationships
Business Model
Key Activities (business needs to do):
• What key activities do our value prepositions
require?
• Our distributions channels? Customer
relationships? Revenue streams?
Categories:
• Production
• Problem-Solving
• Platform/Network
Business Model
Key Resources (significant assets):
• What key resources do our value prepositions
require?
Types of Resources:
• Human
• Physical
• Intellectual
• Financial
Business Model
Value Prepositions (benefit statement):
• What values do we deliver to the customer?
• Which one of our customer’s problem are we
trying to solve?
• What product and services are we offering to our
customer segments?
• Which customer needs are more satisfying?
Business Model
Customer Relationships (methods/strategy to engage
with customers):
• Which type of relationships do our customers
expects us to establish and maintain with them?
• Which ones we have established?
• How costly are they?
• Personal assistance, Dedicated personal assistance, Self-
service, Automated services, Communities, Co-creation
Business Model
Distribution Channels (wholesale, retailer,
distributor):
• Through which channels do our customers want
to be reached?
• How are we reaching them now?
• Which ones work best and are cost-efficient?
Types of Channels:
• Owned Channels Partner Channels
Business Model
Customer Segmentation (dividing customers into
group):
• For whom are we creating value?
• Who are our most important customers?
Customer Segment Types:
• Mass Market
• Niche Market
• Segmented
• Diversified
• Multi-sided Platform
Main Segments
Demographics
- data that describe a group of people in terms of
their age, marital status, family size, ethnicity, gender,
profession, education and income.
Psychographics
- data that describe a group of people in terms of
their tastes, opinions, personality traits and lifestyle
habits.
Main Segments
Use-based Data
- data that helps you determine how often potential
customers use a particular service
Geographic Data
- data that helps you determine where your
potential customers live and how far they will travel to
do business with you
Business Model
Cost Structure
• What are the most important costs inherent in
our business model?
• Which key resources and activities are most
expensive?
• Is our business more cost-driven or value-driven?
Business Model
Revenue Streams
• For what value our customers are willing to pay?
• For what do they currently paying?
• How much does each revenue stream contribute
to our overall revenues?
Types of Revenue Streams
• Asset Sale; Usage Fee; Subscription Fee; Lending/Leasing/Renting;
Licensing; Brokage Fee; Advertising
The Business Goals: Vision,
Mission, Objectives and
Performance Targets
• It shows the future and long-term prospects
of the enterprise.
• It also includes the key result areas and the
performance indicators
Business Goals
a predetermined target that a business or individual
plans to achieve in a set period of time
Vision
your goal for what your business will be in the future
Mission
the main idea, the purpose and the drivers behind a
company, which sends the company its way in a
particular direction
Vision
My T-shirt will be a leading provider
of personalized, good quality, and
fashionable printed casual T-shirt wear
that are attuned to the needs of the
youth.
Mission
My T-shirt is a socially responsible
company providing high quality,
personalized, and reasonably priced
printed T-shirt which caters to the
clothing needs of youth in Rizal.
Key Result Area – qualitative
manifestations that the objectives are being
achieved
Performance Indicator – serves as
aspirational scorecard of the enterprise
managers and the motivational results of the
investors
Executive Summary
• It is the synthesis of the entire business plan
• Contains the major argumentations of the
business proponent on why the business will
work and succeed
Executive Summary
1. Company Overview
•Business Name: Clearly state the name of your
company.
•Mission Statement: Briefly explain the purpose
and goals of your business.
•Products or Services: Describe what you offer.
Company Name
Mission Statement: [Briefly state the purpose and goals of your business]
Products/Services: [Describe what you offer]
Executive
2. Market Analysis
Summary
•Target Market: Identify your ideal customers.
•Industry Trends: Discuss the current state and
future prospects of your industry.
•Competition: Analyze your competitors and
their strengths and weaknesses.
Market Analysis
•Target Market: [Identify your ideal customers]
•Industry Trends: [Discuss the current state and future prospects of your industry]
•Competition: [Analyze your competitors and their strengths and weaknesses]
Executive Summary
3. Management Team
•Key Personnel: Highlight the experience and
qualifications of your management team.
Management Team
•[Name of CEO/Founder]: [Title, Experience, Qualifications]
•[Name of Key Employee]: [Title, Experience, Qualifications]
•[Name of Key Employee]: [Title, Experience, Qualifications]
Executive Summary
4. Financial Projections
•Revenue: Forecast your anticipated income.
•Expenses: Estimate your costs.
•Profitability: Project your expected profits.
Financial Projections
•Revenue: [Projected income for the next 3-5 years]
•Expenses: [Estimated costs, including operating expenses, salaries, and marketing]
•Profitability: [Projected profit margins]
Executive Summary
5. Funding Request
•Amount Needed: Specify the amount of
funding you are seeking.
•Use of Funds: Explain how the funds will be
used to grow your business.
Funding Request
•Amount Needed: [Specify the amount of funding you are seeking]
•Use of Funds: [Explain how the funds will be used to grow your
business]
Executive Summary
6. Conclusion
•Call to Action: Reiterate the key points of your
business plan and encourage the reader to invest
or support your venture.
Conclusion
•Call to Action: [Reiterate the key points of your business plan
and encourage the reader to invest or support your venture]
Executive Summary Template
Company Name
Mission Statement: [Briefly state the purpose and goals of your business]
Products/Services: [Describe what you offer]
Market Analysis
•Target Market: [Identify your ideal customers]
•Industry Trends: [Discuss the current state and future prospects of your industry]
•Competition: [Analyze your competitors and their strengths and weaknesses]
Management Team
•[Name of CEO/Founder]: [Title, Experience, Qualifications]
•[Name of Key Employee]: [Title, Experience, Qualifications]
•[Name of Key Employee]: [Title, Experience, Qualifications]
Financial Projections
•Revenue: [Projected income for the next 3-5 years]
•Expenses: [Estimated costs, including operating expenses, salaries, and marketing]
•Profitability: [Projected profit margins]
Funding Request
•Amount Needed: [Specify the amount of funding you are seeking]
•Use of Funds: [Explain how the funds will be used to grow your business]
Conclusion
•Call to Action: [Reiterate the key points of your business plan and encourage the reader to invest or
support your venture]
Lesson 3: Chapter 3
The Business Proponents
- Contains information about the
business proponents or
stakeholders.
Types of Stakeholders
1.Resource mobilizers and financial
backers ( to share the burden of
raising money)
2. Technology providers and
applicators ( sufficient funds to pay for
the technology)
3. Governance and top management
(what strategies and performance
indicators are being proposed)
4. Operating and support team (what
programs, activities tasks and
resources would be in place)
Duties and Responsibilities of the Members

Chief Executive Officer (CEO)


• Also known as the president or
managing director
• Has the highest ranking in the
organization
Duties and Responsibilities of the Members

Chief Executive Officer (CEO)


• Creating the mission and vision of the
company
• Evaluating the work of other directors in
the company
Duties and Responsibilities of the Members

Marketing Director
• Responsible for the marketing and
communications strategy of the company
• Overall branding and image
• Creates the calendar of campaigns and events
• Creates the virtual store, print ads
Duties and Responsibilities of the Members

Production Director
• Ensures the productivity of the company is
optimized
• Overseeing the workforce in the production
department
Duties and Responsibilities of the Members

Production Director
• Purchase all the necessary supplies and raw
materials needed for the mass production
• Report on the quality of the product and status
on the number of productions
Duties and Responsibilities of the Members

Public Relations
• Source out quality suppliers, connections,
linkage, community partners (CSR)
• Collect customers’ feedback
• Ensure costumers satisfaction
Duties and Responsibilities of the Members

Public Relations
• Create media that will shape public opinions of
the company
• Increase awareness of the brand
Duties and Responsibilities of the Members

Finance Department
• Handle the money well including the incoming
and outgoing cash flow
• Report about the expenses growth
• Should prepare a financial report
Duties and Responsibilities of the Members

Human Resource Department


• In charge of the development of the employees
• Keeping employees record and profile
• Employees evaluation
• Appraisal, reward system and disciplinary
sanctions and actions
Lesson 4:
Logo Making

Business Plan
• Promoting a company’s products or
services is really important and must be
conceptualized properly.
• The elements of design must be
presented in a unique and special way.
• The business logo should create a
lasting positive impression on the
customers.
Types of Logo

Business Plan
TYPES OF LOGO
WORDMARKS
❑ - are free standing word or multi-
letter abbreviation groupings
comprising a logo also known as
logotypes
❑ - it is focused on the brand’s name
Wordmarks
TYPES OF LOGO
LETTERFORM
❑ - logos are comprised of a single
letter
Letterform
TYPES OF LOGO
PICTORIAL
❑ - logos are illustrated symbols of
recognizable things
Pictorial
REMEMBER!!!
● Your logo - from the color of the shape - should
provide an immediate sense of what your
company is all about.
● Color choice is incredibly important. Choose a
color that your biggest competitors do not use in
their logos.
Lesson 5: Market
Research
Identifying Logical and
Personal Needs
Consumer purchase products and
services motivated by both logical and
personal needs.

10/3/2024 MARKET RESEARCH 2


Identifying Logical and
Personal Needs
❏ Logical Needs are those that most people
recognize as necessary to survive and
thrive.
➢ Example: for safety, health, and
transportation.
10/3/2024 MARKET RESEARCH 3
Identifying Logical and
Personal Needs
❑ Personal Needs are those that most people
consider as optional for survival, but an
individual believes are necessary to thrive. This
belief can be unconscious.
⮚ Examples are fun, pride comfort, romance and
acceptance.
10/3/2024 MARKET RESEARCH 4
Market Research
the process of gathering, analyzing and
interpreting the information about the
products and services to be offered for sale
to the potential consumers in the market

10/3/2024 MARKET RESEARCH 5


Market Research
Methodology
1. SalesData Mining
2. Focus Group Discussion

3. Observation Technique

4. Survey Research

10/3/2024 MARKET RESEARCH 6


Market Research Methodology

Survey Research

is the most preferred instrument for


in-depth quantitative research.

10/3/2024 MARKET RESEARCH 7


Market Research Methodology

Survey Research
You have to know the characteristics of the
person or company that is likely to purchase a
product or service through a Customer Profiling.
This helps you understand what you need to do to
meet customer’s demand.
10/3/2024 MARKET RESEARCH 8
Demographics
Personal information
• Age
• Gender
• Income
• Education

10/3/2024
Nationality MARKET RESEARCH 9
Demographics
1. Motivations
2. Behavior
3. Social Classes/Reference Groups

10/3/2024 MARKET RESEARCH 10


Demographics
4. Ethnic Background
5. Religious Belief
6. Occupations
7. Domiciles or Habitats
10/3/2024 MARKET RESEARCH 11
Psychographics
It is the customer’s motivations,
perceptions, preference and lifestyle.

10/3/2024 MARKET RESEARCH 12


Psychographics
Motivation – needs and wants of customers
Perception – the way a person chooses to receive or
interpret information
Preference – unique set of likes and dislikes
Lifestyle – what people value the most
10/3/2024 MARKET RESEARCH 13
Technographics
It classifies people according to their
level of expertise of using a product or
service.

10/3/2024 MARKET RESEARCH 14


Some tips in
Collecting Data

10/3/2024 MARKET RESEARCH 15


Some tips in Collecting Data

10/3/2024 MARKET RESEARCH 16


Some tips in Collecting Data

10/3/2024 MARKET RESEARCH 17


Some tips in Collecting Data

10/3/2024 MARKET RESEARCH 18


Some tips in Collecting Data

10/3/2024 MARKET RESEARCH 19


Usage, Attitude, and
Image(UAI)
It is a research tool designed to improve business
development by surveying.
1. Market awareness
2. Market size and share
3. Product usage and preference
4. Customer interest
5. Customer Image
10/3/2024 MARKET RESEARCH 20
10/3/2024 MARKET RESEARCH 21
10/3/2024 MARKET RESEARCH 22
10/3/2024 MARKET RESEARCH 23
Awareness, Attitude &
Usage
Brand Awareness
This is where respondents are asked about their
familiarity with brands related to the purpose of
market research. (Do you?/Have you?)
Advertising Awareness
Similar to the brand awareness section,
respondents are asked questions regarding their
familiarity with competitor’s advertisements as well
as the channels where they frequently encounter it.
(Do you?/Have you?)
10/3/2024 MARKET RESEARCH 24
Awareness, Attitude & Usage
Brand and Category Usage
This section of the survey consists of questions with response
options of the frequency of usage. (How often?/Scale)
Purchase Habits
The goal of this section is to determine the behavior of
respondents towards a specific consumer good or service. Questions
that start with “how often” are commonly used.
Importance Brand Imagery
Product qualities, characteristics, and attributes are the main
focus of this section of the survey. You must be able to include all the
necessary details to gather sufficient information regarding the
product or service. (Wh - )
10/3/2024 MARKET RESEARCH 25
Lesson 6: Chapter 4 & 5
Trivia
Micro enterprises, the tiniest of these mini
enterprises, accounted for the largest share of the
employment generation, 28.86 percent, followed by
small enterprises with 27.04 percent. (Large
enterprises generated only a total of 3.33 million jobs,
or 36.81 percent, of the country’s overall employment.)
IV. The Target Customers and the
Main Value Proposition
Market
It is a group of customers or
potential customers who have purchasing
power and unsatisfied needs.
In any place you will see all types
of people each with their specific
needs and wants.
Target Market
oThe specific group of people that you
want to sell to.
oThe intended recipients of a firm’s
products or services.
Target Market
omust be sufficient in size
ohas paying capacity
ohas interest in paying the product
Example: Target Market
SM Supermarket targets mall
shoppers of SM while Savemore targets
those outside of grocery shoppers.
Main Value Proposition
oIt summarizes why a customer should
choose your product.
oIt is the relevant and unique benefit
that the consumer gets from buying or
owning the firm’s product or services.
Example: Value Proposition
Boysen’s KnoxOut is the first air cleaning
paint in the world with CristalActiv photo
catalytic technology, which uses light energy to
break down noxious air pollutants (Nox) and
converts them into harmless substances H2O
and Co2. (Quality, Uniqueness)
Example: Value Proposition
“The Smartest Way to Get Around”
Uber excellently conveys the
simplicity and ease that lies at the heart
of what makes it such a tempting service
Example: Value Proposition
1. One tap and a car comes directly to
you
2. Your driver knows exactly where to go
3. Payment is completely cashless
V. Market Demand and Supply, Industry
Dynamics, and Macro Environmental Factors
V. Market Demand and Supply, Industry
Dynamics, and Macro Environmental Factors

The business plan should estimate the


total market supply and demand for
the product offerings and determine the
major critical factors that influence it.
Industry Dynamics
It is the study of the means and
processes through which
industries change over time through their
own processes of evolution.
Macro Environmental Factors
Social Environment
▪Demographic and cultural dimensions
Macro Environmental Factors
Political Environment
▪Includes the laws, rules, and
regulations on allowable and
disallowable business practices
Macro Environmental Factors
Economic Environment
▪Driven by supply, and demand forces
Macro Environmental Factors
Ecological Environment
▪Includes all-natural resources and
the ecosystem
Macro Environmental Factors
Technological Environment
▪New scientific and technological
discoveries that leads to the launch of
new commercialization of new
products
Lesson 7
Chapter 6 and 7
VI. The Product and Service
Offerings
VII. The Enterprise Strategy
and Enterprise Delivery
Systems: Business
Competitiveness
VI.
The Product and
Service Offerings
example

Purpose of the Product


My T-shirt will offer customers
a variety of options of
choosing their custom shirts.
Most of the orders will be for
white t-shirts ;
example

Purpose of the Product


however other colored t-shirts
will be available for both men
and women who are looking
for casual yet trendy shirts.
example

Purpose of the Product


My T-shirt have two unique
features. The first is the wide
array of graphic designs and
create your own or
personalized design,
example

Purpose of the Product


graphics, and slogans that will
connect to the customers and
will reflect their opinions and
personality.
example

Purpose of the Product


The second unique features is
the high quality of screen
printing which is made from
the premiere silkscreen ink
and paints and handled with
utmost care in every print.
Sample T-shirt
VII.
The Enterprise
Strategy and
Enterprise Delivery
Systems: Business
Competitiveness
Enterprise Strategy (ES)
-Mapping of the competitive
landscape
- Situating the enterprise and its
competitors as to their strategies
and chosen positioning
Map of UK chocolate confectionery Brands
Enterprise Delivery System
Desired
Input Throughput Output Marketing
Outcome

•Harnessing of •Conversion of •Goods •Positioning •Customer


human, input into produced or •Product satisfied
money, and output and the services •Packaging •Sales volume
physical transformation delivered •Place attained
resources process within •People •Profits
•Resoures the factory or •Promotion generated
mobilized - service shop •Price •People
money, men, performance
machines,
materials,
methods,
management
Marketing Mix
are set of actions or
tactics that a company
uses to promote its brand,
product or service in the
market.
7 P’s in Marketing
1. Product
2. Price
3. Promotion
4. Packaging
5. Place
6. Positioning
7. People
1. Product
Types of Product
Breakthrough
1.

Offers completely
new performance
benefits
Types of Product
2. Differentiated
It tries to claim a new
space in the mind of the
costumer different from the
spaces occupied by the
existing products.
Types of Product
3. Copycat
It doesnt make much
impression on the
consumers’ mind
Types of Product
4. Niche
They are products with
lower reach, lower visibility,
lower prices and lower top of
mind
2. Price
Prices could be set at a
PREMIUM to project a quality
image and to distance the
product from its inferior
competitors. The idea is to
attract customers who are
willing to pay extra for the
quality service.
Quantity is used to illustrate the total
amount of goods or services that are
required at any given time and place.

Cash can be used to exchange for


goods and services

Revenue is the money that the


company receives during a specific
time period.
3. Promotion
Is the explicit
communication strategy
adopted by an enterprise to
elicit the patronage, loyalty and
support from the customers and
significant stakeholders.
3. Promotion

Most widely methods:


1. Advertising
2. Personal selling
Utilizes the media:
Advertising newspaper, magazine, radio,
television, billboard, mail and
yellow pages.
Objectives:
a. To increase sales

b. To introduce a new product

c. To sustain an establised
business
Advertising The proper way of
creating an advertising
is to evaluate the
products, services,
competitors and
customers.
4. Packaging
Purpose of Packaging
- It identifies the product, describes its
features and benefits and complies with
government rules.
- It differentiates the product from its
competitors and even from its other brand
offering.
Purpose of Packaging
- It lengthens the lifespan, physically
protects and extends the usefulness of the
product.
- It has become an environmental issue by
itself.
The aforementioned purposes of packaging
have increased the cost of packaging.
VIII.
Financial Forecast
and Expected
Returns
❖Financial Forecasting :
-is rendering into numbers of the
assumptions that entrepreneurs make of
the following:
a. how their sales will move
b. how costs will behave
c. what kind of profit they will attain
d. what assets they will require, and
e. how they will finance those assets
Important!!
❖ To examine the critical variables
that affect the industry and business
that one is in.
❖ Assess how these variables will
behave
Important!!
❖ Critical variables that have affected
the business in the past and the
present will not change significantly
in the future.
Important!!
❖ Assume that the environment or market
we operate in will, more or less, move
along the trends, cycles, and patterns
we saw in the past and continue to see
at present, then we must input these
things into the forecast
Financial Statements
❖ It is a formal record of the financial
activities of an entity.

❖ It also quantifies the financial


strength, performance, and liquidity
of a company.
Elements of the Income Statement
Revenues or Income:
❖ Service Income - revenue derived from
rendering services

❖ Sales or Sales Revenue - is used to


describe revenue derived from selling
goods.
Elements of the Income Statement
❖ Sales - it is the total amount of revenue
produced by the business

❖ Operating Expenses - are expenses


related to the everyday operation of the
business.
Elements of the Income Statement
❖ Cost of Good Sold or Cost of Sales -
collects the cost and expenses related
to the production of goods and/or
services.
Elements of the Income Statement
❖ Gross Profit - it is the profit of the
company after subtracting the
expenses

❖ Total Expenses – sum of all the


expenses acquired in business
Elements of the Income Statement
❖ Taxes – the amount of income taxes
that an entrepreneur is indebted to the
government both local and national.

Net Income – is the amount of money


the business has produced after paying
income taxes
Elements of the Income Statement
❖ Net Income Before Taxes – the amount
of income earned by the business
before paying income taxes by
deducting total operating expense from
gross profit
Balance Sheet
❖ It is also known as Statement of
Financial Position
❖ Assets – something that an entity owns
or controls so that a company can
produce economic benefits or usage
❖ Liabilities – an obligation that a
business owes to someone and its
payment could be in cash or other
resources
❖ Equity – it is what a business owes to
its owners
Example: Accessories

Sales Revenue (unit sold [4,000] * price [25]) : ₱ 100,000.00


Cost of Good Sold (Beginning Inventory [70,000]

Income + Purchases [50,000]


– Ending Inventory [45,000]):
Gross Profit (Revenue – COGS):
75,000.00
25,000.00
Statement Operating System
Selling Expenses
Advertising Expense 2,000.00
Commission Expense (sales [100,000] *
commission rate [5%]): 5,000.00
7,000.00
Administrative Expenses
Office Supplies Expense 3,500.00
Office Equipment Expenses 2,500.00
6,000.00
Total Operating Expenses ₱13,000.00
Operating Income (Gross Profit – Operating
Expenses): ₱ 12,000.00
Merchandising
Business
Sample Balance
Sheet
Vertical Analysis:

Income Statement or Statement


of Comprehensive Income (SCI)

Balance Sheet or Statement of


Financial Position(SFP)
Assume that in year 2 there will be a 50% increase
sales

Year2: 2015
Compute for Sales:

2014 Sales - 5,385.86 x 50% = 2,692.93 (increase)

2015 Sales = 5,385.86 + 2,692.93 = 8,078.79


Chapter 9: Environmental &
Regulatory Compliance

Chapter 10: Capital Structure &

BUSINESS PLAN Financial Offering


IX. ENVIRONMENTAL AND REGULATORY
COMPLIANCE
The business plan must articulate the ff:
oLaws
oRules and regulations governing the
business and the industry that the enterprise
is in.
Do’s Dont’s
1. All staff and employees 1. Smoking within the premises
must comply with the of the company is
working days and business prohibited.
hours set by the company. 2. Employees shall not be seen
2. Employees will only be under the influence of
compensated according to alcohol while on duty.
the hours they have worked
for.
You may also create laws on the following:

1. Negligence in the performance


2. Absences
3. Resignation
4. Performance appraisal
5. Benefits
Socio - Economic Aspect
1. Government
The primary focus of Khombi company is to gain
more profit as well as to focus on being socially
responsible to the government by paying taxes right
on time and municipal or business license in order to
allow the company to do business. The company will
make sure that all permits must be paid on time and
renewed annually.
2. Customer
Khombi will make sure that in every transaction
customers are well served and are fully satisfied. It
aims to provide quality made and innovative
product such as “Mush Chorizo” which will bring a
significant effect on how their customers will view
their business by helping them provide a product
that can perceived with value.
Chapter 9: Environmental &
Regulatory Compliance

Chapter 10: Capital Structure &

BUSINESS PLAN Financial Offering


PROFITABILITY RATIOS

measure the ability of the company to


generate income from the use of its assets and
invested capital
Return on Sales(ROS) or Net Profit Margin- the ratio
of net profit to sales. Expresses net income as a
percentage of sales. A company with a higher net
profit margin is considered more profitable.

Formula: ROS = Net Profit / Sales


Return On Assets (ROA) - measures the profitability of
a company’s assets. It also measures the company’s
efficiency in generating income by employing its
assets. When comparing companies, the company
with a higher ROA is judged to be more profitable.

Formula: ROA = Net Profit / Assets


Return On Equity(ROE) - it measures the return
or net income generated by the capital invested
by the owner in the business. The company
with higher ROE is judged to be more
profitable.
Formula: ROE = Net Profit / Owner’s Equity
You can give a brief description of the topic
you want to talk about here. For example, if
you want to talk about Mercury, you can say
that it’s the smallest planet in the entire Solar
System
PROFITABILITY RATIOS - MEASURE THE ABILITY OF THE COMPANY
TO GENERATE INCOME FROM THE USE OF ITS ASSETS AND
INVESTED CAPITAL

You might also like