Do You Want Go
Into Business?
Why Go into Business
Rewards of Going into Business or Entrepreneurship
Risks of Going into Business or Entrepreneurship
Starting a Small Business : Process Flow
Types of Business According to Ownership
Writing a Business Plan
Raising Capital
Locating your Business
WHY GO INTO BUSINESS
Entrepreneurship is a way of life. Being
entrepreneurial means being able to identify,
start, and maintain a viable and profitable
business, particularly a small enterprise.
“ Why should I risk my resources in an
unpredictable business when I could hold a stable
job with permanent tenure and an assurance of a
regular monthly income without any risk?”
REWARD OF GOING INTO
BUSINESS OR
ENTREPRENEURSHIP
1. Having unlimited
opportunity to make money
When you have your own business,
you will most certainly have unlimited
potential to earn money.
2. Being you own boss
As manager of your business, you make
the decisions for your enterprise and take full
responsibility for these.
The quality of these decisions will
translate into either gain or loss for your
business.
3. Tapping your creativity
A business usually starts out as
an idea. You will have the opportunity
to harness this creativity and turn you
idea into products and processes.
4. Overcoming challenges and
finding fulfillment
Starting a business is by itself an
accomplishment. Running a business
test an entrepreneur’s capability in
securing and managing resources.
5. Helping others
In the process of running a
business, an entrepreneur employs
workers, and pays them income
which improves their lives.
6. Building an entrepreneurial
legacy
A business can be a lasting
legacy to the family. It can ensure
employment for some members of
the family.
RISK OF GOING INTO BUSINESS OR
ENTREPRENEURSHIP
1. Possibility of failure
There is always the possibility of
failure – a single wrong business
decision can bring a business to
bankruptcy.
2. Unpredictable business
conditions
A small business is
vulnerable to sudden changes
in the business environment.
3. Long hours of work
A prospective entrepreneur
must be ready to spend most if
not all his waking hours in the
business. Also, family time and
personal affairs may be
sacrificed.
4. Unwanted or unexpected
responsibilities
The entrepreneur may eventually
find himself saddled with
management responsibilities he did
not bargain for
STARTING A SMALL ENTERPRISE : PROCESS FLOW
Look within : Do you have what it takes?
Look outside : what are the helping/hindering factors?
Determine you product/service line and type of business
Write your business plan
Raise capital
Seek other sources of assistance if necessary
Choose your business location
Register your business
Hire/train personnel
TYPES OF
BUSINESS
ACCORDING TO
OWNERSHIP
A business owned and
managed by one
individual; the business
and the owner are one
and the same in the
eyes of the law
TYPES OF BUSINESS ACCORDING TO
OWNERSHIP
Single proprietorship
Advantages :
1. Easy to set up.
2.Decision making left entirely to owner.
Disadvantages:
1. Demanding on owner’s personal time.
2.Growth limited by owner’s financial
means.
Partnership
An association of
two or more people
who co-own a
business for the
purpose of making
a profit
A partnership agreement or the Uniform Partnership Act
Partnership
Advantages :
1.Relatively easy to set up.
2. Check and balance maintained with
two ownership.
Disadvantages :
1.Partnership may be endangered with
conflicts between partners.
2. A decision make by one partner is binding
on all other partners.
3. Generally liability for debts incurred is
unlimited.
A separate legal
entity apart from its
owners which
receives the right to
exist from the state
in which in which it
is incorporated
Corporation
Advantages:
1. You share the risks and losses
with the other partners.
2. Maximum flexibility for growth.
3. Limited liability of individual
shareholders.
Disadvantages:
1. Complicated setting- up
process.
2. Individual stockholders my
have limited influence
on management.
WRITING A BUSINESS PLAN
INTRODUCTION
1. State your objectives - this section,
which precedes all business plans, tells your
reader who you are, what your business
goals are, and when you expect these goals
to be accomplished.
2. Describe the business - this section gives
background information on your business and
how it is currently doing.
THE MARKETING PLAN
3. Describe you products or services - Give a
detailed description of your products or services to
give the reader a clear idea of what you are selling.
4. Identify your potential market - Determine
who are your present or projected customers and how
many.
5. Identify your competitors - competition need
not be a threat. Rather it should spur you to do your
best.
6. Consider your pricing policy - in pricing your goods
and services, all relevant factors should be considered, like cost
of production and distribution and the degree of acceptance by
the market.
7. Determine your marketing methods - Selling a good
product at a reasonable price is not enough.
a. How will you promote or advertise you business?
b. How will you sell your product? Will you employ sales
people? Will you have your own outlet? Will you engage
marketing agents?
c. What do your customers think of your product? How
can you improve your image as an enterprise?
THE TECHNICAL (PRODUCTION) PLAN
8. Indentify your material requirements
and sources of supply - List down what
materials you will need and where you will
materials you will need and where you will get
them.
9. Determine the process of equipment
you will use to manufacture you
product - give a detailed explanation of you
production process.
THE ORGANIZATIONAL PLAN
10. Determine your key personnel –
Identify the key people in you business,
including you as owner and manager.
11. Identify your work force and
support personnel - list down the skills
and position you need, the number of people
for each position, and their corresponding
salaries and wages.
THE FINANCIAL PLAN
12. Determine your financial
requirements - prepare a forecast
that outlines all you capital requirements.
13. Prepare a budget - the budget
should include marketing, production and
general and administrative expenses.
RAISING CAPITAL
EXTERNAL SOURCES OF CREDIT
1. Pawnshops – you can get quick cash by pawning
jewelry and other valuables.
2. Credit cooperatives – these are a popular and easy
source of credit especially in the rural areas.
3. Money lenders – these are people who lend quick
money without collateral but charge exorbitant interest
rates.
4. Lending investors – these are business enterprises
engaged in money lending operations.
5. Formal sources of credit – these includes banks,
financial institutions and certain government
development agencies and development oriented non –
government organizations.
LOCATING YOUR BUSINESS
1. Raw Materials
- are sources of raw materials you need for
your business accessible to the site.
2. Market
- how far are you from your target buyers
3.Transportation
- consider cost of transporting raw materials
and finished goods. Check the availability of
public transport for your costumers and
employees
4. Labor
- Can you employ people living in the
vicinity ?
Do they have the skills you need?
Are they within the commuting
distance?
5. Utilities
- Are light and water available?
- Are these reliable and adequate?
.6. Community
- How are the community’s rules and
regulations in relation to your
business?
- Does the local government
encourage certain types of business to
set up in the area?
- Is it physically attractive?
- progressive?
- Safe ?
.6. Site
- If you need land, is a suitable lot available?
- For how much?
- Is it necessary to excavate or put in landfill?
- Is the land properly titled?
- If the site is within the building, what do you
need in terms of
lighting, airconditioning and parking?
- How long is the lease contract?
- Are the terms affordable and fair?
- How much will it take you to renovate the
place?
5 Rings to relationship
1.Engagement RING
2.Wedding RING
3.Suffer RING
4.Endu RING
5.God’ love offe RING
