5 starting a new business
DESCRIPTION
TRANSCRIPT
![Page 1: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/1.jpg)
STARTING A NEW BUSINESS
Mr. Angelo Marco U. Lacson
DLS-CSB Resident Faculty
![Page 2: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/2.jpg)
Just Where do you Begin . . .
Are you ready for entrepreneurship?
What kind of business will you enter into?
How do you start?
How much capital do you need?
![Page 3: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/3.jpg)
BRAINSTORMING FOR BUSINESS
Create a NEW product or service
Improve an EXISTING product
or service
![Page 4: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/4.jpg)
BRAINSTORMING FOR BUSINESS
Create a NEW product or service
Improve an EXISTING product
or service
SUPPLIER
SELLER / RETAILER
DISTRIBUTOR
![Page 5: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/5.jpg)
CONCEPT DEVELOPMENT
Your concept must have a solid
foundation otherwise everything else will
be confused.
![Page 6: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/6.jpg)
CONCEPT DEVELOPMENT
Company Name
Trade Name
Mission Statement
Vision Statement
Trade Logo
![Page 7: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/7.jpg)
![Page 8: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/8.jpg)
It must be legally protectable
It must be easy to pronounce
It must be easy to remember
It must be easy to recognize
It should attract attention
It may suggest product benefits or suggest product usage
It may suggest the company or product image
It may distinguish the product's positioning relative to the competition
QUALITIES OF A GOOD BRAND
![Page 9: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/9.jpg)
• Ali Baka (Shawarma)
• Anita Bakery• Aristoback (Resto behind Aristocrat)
• Bali Gulp (Drinking Place beside Valley Golf)
• Crispy per Minute (Crispy Pata Eatery)
• Caintacky Fried Chicken (Resto in Cainta)
• Mercy Buko (Fresh Coconut Roadside Shop)
• Cooking ng Ina Mo (Carinderia in Boni Avenue)
• Cooking ng Ina Mo Rin (A competitor)
Brand Management
![Page 10: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/10.jpg)
Do you think these names are funny? Maybe . . . But as a future entrepreneur, do you
honestly think you will be able to build an empire of 100 branches
of “Cooking ng Ina Mo”?
![Page 11: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/11.jpg)
ASSIGNMENTDefine the following marketing
terms related to brand management. (Due next mtg.)
1.Brand Awareness2.Top-of-Mind Awareness3.Brand Association / Brand
image4.Brand Preference5.Brand Loyalty
![Page 12: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/12.jpg)
CONCEPT DEVELOPMENT
Business Type
Operating Hours
Target Market
Concept/Themes
Menu / Menu of Services
![Page 13: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/13.jpg)
LOCATION! LOCATION! LOCATION!
Will your location bring in the greatest number
of customers at the lowest cost to you?
![Page 14: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/14.jpg)
LOCATION ANALYSIS
![Page 15: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/15.jpg)
LOCATION KEY ISSUES
Visibility
Accessibility
Suitability
Zoning
Costs
![Page 16: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/16.jpg)
AREA EVALUATION
Population Statistics
Area Growth Pattern
Attractions / Visual Appeal
Business that generate demand
New Constructions / Renovations
![Page 17: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/17.jpg)
![Page 18: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/18.jpg)
![Page 19: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/19.jpg)
![Page 20: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/20.jpg)
The core of THE GENERICS PHARMACY is an advocacy of making medicines accessible to ALL Filipinos.
![Page 21: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/21.jpg)
MARKETING STRATEGIES
How will you attract and retain customers?
![Page 22: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/22.jpg)
SWOT and TOWS Financial Aspects
Physical Resources
Management Capabilities
Market
Management Information
Supply of Raw Materials
Social Environment
Production Process
Political Environment
Economic Environment
![Page 23: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/23.jpg)
COMPETITION CHECK
Keep your friends close, and your enemies even
closer.
If you can’t beat them, join them!
![Page 24: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/24.jpg)
COMPETITION ANALYSIS
DIRECT vs.
INDIRECT
![Page 25: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/25.jpg)
DIFFERENTIATION STRATEGIES
Product Strategies
Service Strategies
Pricing Strategies
Image Strategies
![Page 26: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/26.jpg)
PRICING STRATEGIES
Formula Price / Cost Plus
Market-Oriented Pricing
Competition-Based Pricing
Psychological Pricing
Premium Pricing / Prestige Pricing
Penetration Pricing / Introductory Pricing
Economy Pricing
Price Skimming
Product Bundling Pricing
Value Pricing Strategy
Promotional Pricing
![Page 27: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/27.jpg)
MARKETING STRATEGIES
Advertising & Public Relations
![Page 28: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/28.jpg)
SCHEDULE
February 1 – Quiz (Phase1-3) Phase 4 – Financial Projections (Please bring Calculator)
February 6 – Phase 4 continuation (Please bring Calculator) February 8 – Quiz (Phase 4) Phase 5 (Please bring Calculator)
February 13 – Quiz (Phase 5) Review
February 15 – Midterm Examination
![Page 29: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/29.jpg)
Just how much money are we talking about?
TOTAL COST OF INVESTMENT
![Page 30: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/30.jpg)
CAPEX (CAPital EXpenditures) Refers to the cost of developing a product or system
OPEX (OPerating EXpenditures) Refers to the on-going costs for running it.
CAPEX & OPEX
For Example:the purchase of a printer is the CAPEX, and the annual paper and ink cost is the OPEX.
![Page 31: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/31.jpg)
TOTAL COST OF INVESTMENT
Renovation or Construction CostsConsultant’s Fees (e.g. Architect, Interior Designer, Financial Consultant, etc.)Rent Advances & DepositsBusiness Permits Furniture, Fixtures, & Equipment
Smaller Items (e.g. Utensils, Menu Cards, etc.) and Related Supplies (e.g. Office, Dining, Kitchen, and Cleaning, etc.)Revolving Fund - Salaries & Wages, Stock Inventory, and UtilitiesFunds - Loose Change Fund & Petty Cash FundsUniform Expenses
![Page 32: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/32.jpg)
CAPEX + OPEX(plus 10%
contingency)
TOTAL COST OF INVESTMENT
![Page 33: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/33.jpg)
12-month Projection
How much money will
you be making?
PROJECTED INCOME STATEMENT
![Page 34: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/34.jpg)
PROJECTED INCOME STATEMENT
SalesLess: Cost of Goods Sold
Gross Profit / IncomeLess: Operating Expenses
Net Profit / Income Less: Income Tax
Net Profit after Tax
![Page 35: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/35.jpg)
REVENUESFood SalesBeverage Sales
PROJECTED INCOME STATEMENT
OPERATING EXPENSESRentUtilitiesSalaries & WagesGovernment Payables13th month PayDining SuppliesKitchen SuppliesCleaning SuppliesDepreciation ExpenseTransportation ExpensesMarketing Expenses
Cost of Goods SoldFood CostBeverage Cost
Income TaxIncome Tax 32%
![Page 36: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/36.jpg)
PROJECTED INCOME STATEMENT
BE CONSERVATIVE
WITH YOUR REVENUE
PROJECTIONS AND EXAGERATE
A LITTLE WITH YOUR STATEMENT
OF EXPENSES
![Page 37: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/37.jpg)
ROI is a measure of profitability; the higher the ROI, the
better.
RETURN ON INVESTMENT
![Page 38: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/38.jpg)
Annual Net Income
RETURN ON INVESTMENT
Total Cost of Investment
x 100
= ROI (%)
Php180,000
Php500,000 x
100 = 36%
![Page 39: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/39.jpg)
The amount of time taken to break even on an investment.
It can provide only a partial picture of
whether the investment is worthwhile.
PAYBACK PERIOD
![Page 40: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/40.jpg)
Total Cost of Investment
PAYBACK PERIOD
Average Monthly Income
= PAYBACK (Months)
Php500,000
Php15,000 = 34 months
(2 years and 10 months)
![Page 41: 5 starting a new business](https://reader035.vdocument.in/reader035/viewer/2022062510/54b5d0214a7959f12a8b45ee/html5/thumbnails/41.jpg)
Thank you.