10 Principles in Creating a Business

1. Scalability - Businesses which has a potential to grow. It is the capability of a system, network or process to
handle a growing amount of work or its potential to be enlarged in order to accommodate that growth.

2. Big Ideas - Every business begins with an idea. Business ideas come from many sources. Hobbies, interests,
and business experiences often give people ideas for new business.

The entrepreneurs vision is more important to the life of the business that anything else.

3. Systems - Recognizing small and big parts contributes success and failures to the business. In this system
everything must work together from employee to presidents from resources to equipment. In making
plan/decision one should be align to the other.

4. Sustainability - A business must be powerful able to harness all economic conditions, in all market settings,
providing positive and meaningful quality results to its customers. Such differentiated result is the key to
survive.

5. Growth - All business needs internal growth. When you are a beginner in a business it is like a school
wherein your employees are students that need your guidance, with your intention and determination that
the business will grow.

6. Vision - What do you want your business to be in the future, your very purpose in creating a business,
vision plays a vital role as it is your guide in planning.

Mission statement outlines all the things your company is doing in the present to reach your goal.

"We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience."

Vision statement describes what your company is building toward in the future.

"To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online."

7. Purpose - A business is the results of a big dream in mind of the person who dream for it.

8. Autonomy - A business if not part of the owner's life, but in fact, its own entity. A business is difficult to
start, however, without the help of others. Even the smallest businesses need a few full or part-time
employees. Choosing the "team" becomes one of the most important initial business decisions.

9. Profitability - A business help economic entity, managing economic reality, creating an economic certainty
for the communities in which it thrives.

10. Standards - A business creates standard against all businesses measured as either successful or not. In
order a business will go beyond, aim high beyond the existing standard.

TECHNIQUES IN EVALUATING A BUSINESS

SWOT ANALYSIS

Strength - Are internal positive characteristics like traits, skills, knowledge, abilities within the
organization. These are things that are within your control.

Weaknesses - Are negative factors that detract from your strengths. These are things that you might
need to improve on to be competitive. Like unskilled workers or lack of managerial talents.

Opportunities - Are external factors in your business environment that are likely to contribute to your
success. Like reliable suppliers of raw materials and cheap power. These are positive impacts of various
external environment on the profitability on which the company has no direct control over it.

Threats - Are external factors that you have no control over. You may want to consider putting in place
contingency plans for dealing them if they occur. These are negative and undesirable impacts of external
factors that affects the profitability of the business.

Tools and Techniques in Creating a Business

Buyers, Geographic Area, Trend, Product, Competitors, Government Regulation s

What is an Industry?

Industry broadly refers to any form of economic activity that has the purpose of
making money.

Types of Industries

Primary industries - Directly involved with natural resources. Examples include

fishing, farming, etc.

Secondary industries - Involves processing and transforming of raw materials

obtained from primary activities or that of packaging manufactured goods.

Tertiary industries - Involves selling and exchanging of goods and services.

Quaternary industries - Involves handling and processing of information and

knowledge.

Primary Industries - Primary industries are directly involved with natural resources.

The following are some examples of primary industries:

Fishing industry, Farming industry, For animal production, there are two types that can be
pursued: Livestock and poultry production. Forestry industry, Mining industry

Secondary Industries - Secondary industries involve the processing and transforming of raw
materials obtained from primary activities or packaging of manufactured goods.

They are also known as 'manufacturing industries'.

Industrial sector and Manufacturing industries

- The industrial sector is composed of manufacturing, construction, mining, and utilities, which
includes electricity, gas and water.

- Primary and secondary industries are closely linked together because they depend on each
other for future growth.

- Secondary industries can be described as light industries or heavy industries, mainly based on
the amount of raw materials used and the nature of goods produced.

Light industries use few raw materials to produce relatively lightweight goods. Ex Manufacture
of garments

Heavy industries use bulky machinery and large quantities of raw materials to produce large
and heavy goods. Ex Steel industries

Labour-intensive and Capital-intensive Industries

- Labour refers to people in an industry, while capital refers to money used to set up and
maintain a business.

- Labour-intensive industries and capital-intensive industries are differentiated by the number

of people employed and amount of capital used in the industry.

A shoe factory (A labour-intensive

Oil refinery (A capital-intensive

Tertiary Industries

- Tertiary industries are also known as 'service industries'. Some examples include banking,
education, tourism, entertainment, transportation, and sale or distribution of food.

Service Sector and Retail Services- Service are products that are consumed when they are produced.
Quaternary industries

Quaternary industries - involve handling and processing of information and knowledge (e.g. research
and development (R&D), education or consultancy). Also work towards developing new products and
services to meet the needs of consumers (e.g. R&D in a pharmaceutical company to develop new drugs.

Industrialisation of a Country

- Industrialisation is the process whereby the machine-assisted production of goods develops greater
importance in an economy or a country. And is often synonymous with the rapid growth of the
secondary industries or manufacturing industries.

International Trade

An export in international trade is a good or service produced in one country that is bought by someone
in another country.

An import is a good or service brought into one country from another.

How to write SWOT Analysis?

1st write the Strengths.

What are favorable condition or advantages within the organization or business?

2nd write the Weaknesses.

What are some potential problems that may encounter within the management / business control?

3rd write the Opportunities

What are external competitive advantage?

4th write the Threats

What are external factors that affect the business?