Entrep

• 4Ms of Operation


  A written document which shows the conversion process which takes place in a business – from input to a desirable output
• Production Plan


  Usually used by businesses under the manufacturing sector
• Operation Plan


  Used by servicing businesses
• Classifications of Resources

  • Human Resources
  • Nonhuman Resources
• Method


  Process to be followed in effectively manufacturing or delivering a product or service
• Manpower


  Right human resource who will handle certain business operations
• Machines


  Technology used in efficiently operating the business operations
• Materials


  Used in creating a product or performing a service
• Method


  • Set of procedures and instructions which you must follow in order to achieve your goal
  • The process of commencing and conducting business operations
  • Must always be systematic and people in the enterprise must be well-informed about this
  • The methods used in managing the organization will link people to each other and to other resources (materials and machineries)
  • Using a flowchart will help the business visualize the actual method involved
• Manufacturing of Goods


  • Conversion of raw materials into finished goods that are acceptable to the customer's standards
  • Elements: Inputs, Process, Outputs
• Manufacturing Sites

  • Home-based
  • Commercial Space for Rent
  • Commercial Space Purchase
• Manufacturing Process Flow


  • Step by step guide of the employees and the manufacturing equipment
  • Process Flow Objectives: Right inputs are properly used, Process is performed according to standards, Acceptable outputs are produced
• Service Delivery Process


  Service businesses must be more meticulous when it comes to the service delivery process because services are intangible, and the only way the customer can appreciate the service is by remembering how pleasant his or her experience was
• Service Blueprint


  A detailed flowchart of the service business
• Distribution of Goods and Services


  • Process of bringing products or services to customers
  • In selling physical goods, the location, the processes, and the distribution of the products to the customers should be planned
• Supply Chain / Distribution Channel


  The manufacturer will deliver the products to the distributors, to the wholesalers, to the retailers, and then finally to the customers
• Manufacturer


  Handles the invention, development and production of the product or service
• Distributors


  Buy products or services from the manufacturers and sell them at a markup price to either wholesalers or retailers
• Agent


  Negotiate with buyers as to how much or how many are to be sold, so the manufacturer will be able to deliver the goods directly to the buyer
• Consignment


  Agents get the product in advance to demonstrate them to the customers return the merchandise to the manufacturers if unsold
• Payment Process


  • Entrepreneurs must also establish a seamless payment process
  • There are instances when the customers do not want to pay in cash and are usually attracted by flexible and customer-friendly payment terms such as credit cards, installment plans, or simple accounts payable or pautang
• Job Description


  Enumerates the duties and responsibilities of the potential employee, including the scope, limitations, and terms and conditions of employment
• Employee Qualifications


  Educational background, work experience, specific skill or knowledge, and work attitude
• Selection of Job Applicants


  Screening of resumes, conduct of interviews, qualifying exams, or psychology tests
• Job Offer


  A job contract offer where the terms and conditions (position, responsibilities, salary and benefits, work schedule, regularization etc.) of employment are discussed
• Employee Development


  Training of people
• Materials


  • Items to be used in creating a product or performing a service, which includes supply chain management
  • Mainly form part of the finished product
  • Just in case the resources are below standard, the finished product will be unsatisfactory as well
• Factors to Consider for Materials

  • Cost
  • Quality
  • Availability
  • Credibility of Suppliers
  • Waste that the raw materials may produce
• Logistics


  • Warehousing - storing the finished goods manufactured in a facility until they are distributed to end users
  • Transportation - process of efficiently transferring the products to retailers or consumers
  • Inventory - refers to the products, materials or supplies stored inside a warehouse prior to production, shipping or selling
• Machine


  • Also known as Machineries, are the basic tools to convert the input into output
  • Include various tools, equipment, instruments, or devices which could be used by the business to produce a product or generate a service
  • Designed to make the work faster and easier
  • Still requires manpower for these to operate successfully
• Business Name Registration (Republic Act No. 3883)


  An act to regulate the use in business transactions of names other than true names, prescribing the duties of the director of the bureau of commerce and industry in its enforcement, providing penalties for violations thereof, and for other purposes
• How to Register as Sole Proprietorship

  • Register a business name at Department of Trade and Industry
  • Register with LGU (Barangay, Mayor's Office)
  • Register with Bureau of Internal Revenue (Form 1901, Form 0606, Form 2303)
• Selling


  In its broad sense, is not only the making of sales, that is, affecting ownership transfers; but also is identifying prospective consumers, stimulating demands and providing information and service to buyers
• Types of Selling


  • Aggressive Selling
  • Transactional Selling
  • Consultative Selling
  • Collaborative Selling
  • Online Selling
• Price Tag Requirement (Republic Act No. 7394, Article 81)


  It shall be unlawful to offer any consumer product for retail sale to the public without an appropriate price tag, label or marking publicly displayed to indicate the price of each article and said products shall not be sold at a price higher than that stated therein and without discrimination to all buyers
• Food and Drug Administration (FDA) Act of 2009 (Republic Act No. 9711, Article 81)


  Specifically prohibits the manufacture, importation, exportation, sale, offering for sale, distribution, transfer, non-consumer use, promotion, advertising or sponsorship of health products (including medical devices and supplies) without the proper authorization
• 5 Basic Types of Accounts

  • Assets
  • Liabilities
  • Revenues or Income
  • Expenses or Expenditures
  • Equity
• Asset Account


  • Reflects the value of resources owned by a company
  • Expected to provide future economic benefit
• Expense Account


  Reflects the costs a company incurs for conducting business and generating revenue
• Liability Account


  Reflects the amount a company owes