ENTREPRENEURSHIP
R:
1.Identify the various parts of
a Business Model.
2.Develop a simple Business
Model.
Business Model
The term business model refers
to a company's plan for making a
profit. It identifies the products or
services the business plans to
sell, its identified target market,
and any anticipated expenses.
Importance of a business model is
concerned with how you design your
business to:
meet customers’ needs (offer something that
they want to buy);
generate a profitable revenue stream from
sales;
build a business that has a sustainable
competitive advantage – in other words, it can’t
easily be replicated; and
provide opportunities for growth
“Implement the
Business Plan”
Objectives:
1. Conduct selling activity based
on the proposed business.
2. Manifest understanding of
starting and operating a simple
business.
The 4 Major Business
Organization Forms
Your company’s form will
affect:
•How you are taxed
•Your legal liability
•Costs of formation
•Operational costs
There are 4 main types of
business organization: Sole
proprietorship,
Partnership, Corporation,
and Limited Liability
Company, or LLC. Below,
we give an explanation of
each of these and how they
are used in the scope of
Sole Proprietorship
The simplest and most
common form of business
ownership, sole proprietorship
is a business owned and run by
someone for their own benefit.
The business’ existence is
entirely dependent on the
owner’s decisions, so when the
owner dies, so does the
Advantages of sole
proprietorship:
•All profits are subject to the
owner
•There is very little regulation for
proprietorships
•Owners have total flexibility when
running the business
•Very few requirements for starting
—often only a business license
Disadvantages:
•Owner is 100% liable for
business debts
•Equity is limited to the owner’s
personal resources
•Ownership of proprietorship is
difficult to transfer
•No distinction between
personal and business income
Partnership
These come in two types: general and
limited. In general partnerships, both
owners invest their money, property, labor,
etc. to the business and are both 100%
liable for business debts. In other words,
even if you invest a little into a general
partnership, you are still potentially
responsible for all its debt. General
partnerships do not require a formal
agreement—partnerships can be verbal or
even implied between the two business
owners.
Limited partnerships require a formal
agreement between the partners. They
must also file a certificate of partnership
Advantages of
partnerships:
•Shared resources provides
more capital for the business
•Each partner shares the total
profits of the company
•Similar flexibility and simple
design of a proprietorship
•Inexpensive to establish a
business partnership, formal or
Disadvantages:
•Each partner is 100%
responsible for debts and
losses
•Selling the business is difficult
—requires finding new partner
•Partnership ends when any
partner decides to end it
Corporation
Corporations are, for tax
purposes, separate entities and
are considered a legal person.
This means, among other things,
that the profits generated by a
corporation are taxed as the
“personal income” of the
company. Then, any income
distributed to the shareholders as
dividends or profits are taxed
again as the personal income of
Advantages of a corporation:
•Limits liability of the owner to
debts or losses
•Profits and losses belong to the
corporation
•Can be transferred to new owners
fairly easily
•Personal assets cannot be seized
to pay for business debts.
Disadvantages:
•Corporate operations are costly
•Establishing a corporation is
costly
•Start a corporate business
requires complex paperwork
•With some exceptions, corporate
income is taxed twice
Limited Liability Company (LLC)
Like a limited partnership, an LLC
provides owners with limited
liability while providing some of
the income advantages of a
partnership. Essentially, the
advantages of partnerships and
corporations are combined in an
LLC, mitigating some of the
disadvantages of each.
Advantages of an
LLC:
•Limits liability to the
company owners for
debts or losses
•The profits of the LLC
are shared by the
Disadvantages:
•Corporate operations are
costly
•Establishing a corporation is
costly
•Start a corporate business
requires complex paperwork
•With some exceptions,
corporate income is taxed
Types of business insurance include:
General liability insurance: Covers
financial loss as a result of injury, property
damage, medical expenses, libel, defending
lawsuits and settlement bonds or judgments.
Product liability insurance: Protects
against financial loss because of a defective
product that causes injury.
Professional liability insurance: Covers
financial loss as a result of malpractice,
negligence or errors for businesses that provide
a service.
Commercial property insurance:
Protects a business with a significant
amount of property and physical assets
against adverse events such as fire, wind or
vandalism.
Home-based Business Insurance:
Adds a rider to the homeowner's insurance
that protects business equipment and
liability for third-party injuries.
Business Owner's Policy: Bundles all
typical coverage to save money.
Where to Register a Sole Proprietor Business?
Here are the government agencies where you are
required to register your Sole Proprietor business.
1. Department of Trade and Industry
2. Local Government Units where your business is
located: o Barangay o Mayor’s Office
3. Bureau of Internal Revenue
4. If you have employees, you need to register to the
following: Social Security System, Philippine Health
Insurance Corporation, Home Development Mutual
Fund
Basic Requirements and Procedure in
Registering a Sole Proprietor Business
In this part of the article, we will guide you on
how to register your business in many different
government agencies.
1. Register a business name at Department of
Trade and Industry
A. Come-up with three (3) business names.
B. Search in the DTI’s website if there’s an
existing name similar to yours
C. If your business name is available, fill-up
Business Name (BN) Application Form
D. Submit your completed BN
application form to DTI’s offices/branch
E. Wait for your DTI Certificate of
Registration
After acquiring a DTI Certificate of
Registration, you may now proceed and
register to Local Government Units (LGU),
such as Barangay and Mayor’s Office:
2. Registration with Barangay
A. Go to the barangay where your business
is located to secure and fill-up application form
B. Submit your completed application form
together with the following: o Certificate of
Business Registration from DTI o Two (2) valid
IDs o Proof of Address such as Contract of
Lease (if rented) or Certificate of Land Title (if
owned)
C. Claim your Barangay Certificate of
Business Registration
3. Register your business in the Mayor’s Office
A. Go to the municipal office where your business
is located to secure and fill- up application form
B. Submit your completed application form
together with the following: Certificate of Business
Registration from DTI, Barangay Clearance
Certificate, Two (2) valid IDs, Proof of Address such
as Contract of Lease (if rented) or Certificate of Land
Title (if owned)
C. Claim you Mayor’s Business Permit and
Licenses When you already got all the certificate and
permits from DTI and LGUs, you may now register to
the Bureau of Internal Revenue (BIR)
4. Register your business in the Bureau of Internal Revenue
(BIR)
A. Go to the Regional District Office (RDO) where your
business is located
B. Fill-up the BIR Form 1901 – Application for Registration
(for Sole Proprietor)
C. Submit completed registration form together with the
following: Certificate of Registration form DTI, Barangay
Clearance o Mayor’s Business Permit, Proof of Address such
as Contract of Lease (if rented) or Certificate of Land Title (if
owned), Valid IDs, if applicable.
D. Pay the Registration Form (BIR Form 0605) E. Register
your book of accounts and receipts/invoices. F. Claim your
Certificate of Registration (BIR Form 2303)
Let Us Try:
Activity 1: Answer directly.
Instruction: Answer the questions below based from your proposed
business plan from Quarter 2-Module 5.
1. Give your own opinions about your products:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
____________
2. Give possible reasons why people will patronize your products?
Reason 1:
_____________________________________________________
Reason 2:
_____________________________________________________
Let Us Do:
Activity 2: Essay.
Instruction: Answer what is asked in the
following items: 1. What business structure do
your proposed business belong (the proposed
business in Quarter 2 -Module 5)?
_______________________________________
_______________________________________
_______________________________________
_________________
Let Us Apply:
ENTREPRENEURS DUTY!
Instructions:
a. Sell your product/service for 3 days. Do not
do online selling. Just do selling near your home.
b. Take a picture of you selling your product or
giving services to your customer/client as a proof
of validation.
Note: Follow protocol, wear your face
mask and face shield and observe social
distancing.
c. Review your selling price by looking at your
d. Record your sales/services for the
day in any piece of paper following a
simple recording matrix below:
Sales
Date Customer’s Amount Paid
Name and
Signature
Rubrics:
Manner = 20 Matter =20 Method = 10 Total = 100 points
points points points
Presentation: Content: Quality Approach: Data gathered
Data gathering of work / Performance where presented
in their outputs
and pictures outputs (clear selling based on and performance
and concise) sales is based on selling.
“Thanks ingatz ta tanan
ALWAYS”
