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• 4Ms of Operation

  • Method
  • Manpower
  • Machines
  • Materials
• Production Plan


  usually used by businesses under the manufacturing sector
• Operation Plan


  Used by servicing businesses
• Inclusions of a Full-Blown Business Plan

  • Manufacturing Process
  • Product Description
  • Production Plan Location (Vicinity Map)
  • Production Plant Layout (Floor Plan)
  • Materials and Equipment Needed
  • Labor Requirements
• Classifications of Resources

  • Human Resources
  • Nonhuman Resources
• Method


  • 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


  • The 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
• Manpower

  • Skilled
  • Well qualified and well verse in business
  • Responsible
  • Dedicated and committed to work
  • Honest and with Integrity
  • Able to attain targets and set goals
  • Not indulge in wasteful expenditure
  • Loyal
  • Team player
• 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
• Materials Requisitioning Options


  • Manufacturing own products or services
  • Outsourcing
  • Purchasing
• Entrepreneur may consider the following 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: The 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
• Equipment and Other Facilities

  • Must be strategically placed in the manufacturing site or in the service delivery area
  • Must prepare a facility plan that details the most economical way to manufacture a product
  • Place the facility where they can be efficiently used
  • Site must be adapting to how big or small the pieces of equipment are
  • Site must be conducive, well- ventilated, and well-lit
  • There should be fire exits and safety reminders
  • Employees/machine operators should undergo rigorous training before they operate equipment
• Telecommunications and Information Technology

  • Laptop and Desktop Computers
  • POS Machines
  • Accounting and Inventory Software
  • Website
• 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
• Benefits of Business Name Registration

  • Avoid legal problems with the government
  • Access to Essential Financial Services
  • Secure reputation as legitimate business
  • More opportunities for growth
  • More confidence in promoting the business
  • Contribute to the country through taxes
• Government Agencies


  • Department of Trade and Industry
  • Local Government Unit
  • Bureau of Internal Revenue
  • Department of Labor and Employment
  • Cooperative Development Authority
  • Securities and Exchange Commission
  • Social Security System
  • Human Development and Mutual Fund (HDMF)
  • Philippine Health Insurance Corporation
• Other Basic Requirements

  • Power Supply (meralco)
  • Water Supply (maynilad)
  • Telephone Connection (PLDT: Philippine Long Distance Telephone Company)
  • Internet Connection
• 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 (BIR): Form 1901 (Application for Registration for Sole Proprietorship), Form 0606 (Payment/Remittance Form), Form 2303 (Certificate of Registration)
• Reminders for Business Name Registration

  • Not and will not be used for a business that is illegal, offensive, scandalous or contrary to propriety
  • Not the same or nearly the same as an existing registered business, company, partnership, corporation, cooperative; nor infringing on any trademark, service mark, and trade name
  • Not composed of generic or geographic words
  • Not a name which by law or regulation cannot be appropriated
  • Not used to designate or distinguish, or to suggest a quality of any class of goods, articles, merchants, or service
  • Not used by the government in its non-proprietary functions
  • Not a name or abbreviation of any nation, inter-governmental or international organization
  • Not deceptive, misleading, or one that misrepresents the nature of the business
• Selling


  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