ENTREP PART 3

• Profit - is a financial gain from a transaction or from a period of investment or business activity, usually calculated as income in excess of costs or as the final value of an asset in excess of its initial value
• It is a total revenue minus total expenses, profit is the amount of money a business "makes" during a given accounting period.
• To make your business gain more profit, begin by adding up all of the money your business has made in a set period of time (either, quarterly, yearly, monthly, etc.
• Note that you will need to subtract any amount of cash refunded to customers for returns or disputes in order to find an accurate figure for your total income.
• Profit - is the gross income.
• The amount of gross profit provides information to the entrepreneur about revenue earned from sales
• The term cost refers to the purchase price of the product including of the product including the total outlay required in producing it
• The gross profit rate measures the percentage of gross profit to sales, indicating the profit that the business realizes from the sale of the product.
• Operating Profit Margin Rate - The operating the profit margin is the excess of gross profit from operating expenses
• The operating profit margin - is the second level of revenue in the income statement
• Operating Margin - How much profit of a company makes a dollar of sales after paying for variable cost of production, such as wages and raw materials, but before paying interest or tax.
• Operating profit margin - These are expenses incurred during a particular period only, and are not expected to provide benefits to any future period.
• The operating expenses - are also period costs
• In case there are no financing charges like interest, expenses, and income tax, the amount of the operating profit margin is equal to the net income
• Financial statements - are important in a company management as a means of communicating past successes as well as future expectations
• The financial statement - records all the operating results such as sales, expenses and profits or losses
• The Return of investment (ROI) - measures the amount of net income per peso invested to the business.
• Objectives – the entrepreneur should have a clear idea on what is his purpose of putting up his enterprise.
• Tasks – this means that the entrepreneur must know what the tasks are he has to perform in order that his objectives will be realized
• Time allocation - This means that the entrepreneur should have a timetable or a schedule to follow every task, so that it will be accomplish on time and realize his objective
• Progress – This means that the entrepreneur should monitor the development of the tasks and the accomplishment of the objective.me in excess of costs or as the final value of an asset in excess of its initial value
• The following are the basic requirements to start a business in the Philippines: Securities and Exchange Commission (SEC) Registration, Department of Trade and Industry (DTI) Registration, Mayor’s Business Permit, Bureau of Internal Revenue (BIR) Registration, SSS, PhilHealth, and Pag-Ibig Fund registration
• Securities and Exchange Commission (SEC) Registration – for partnership or Corporation
• Mayor’s Business Permit – for getting the license to operate in the city or municipality and payment of your local business taxes
• Department of Trade and Industry (DTI) Registration – for your business trade name
• Bureau of Internal Revenue (BIR) Registration – for getting TIN, official receipts and invoices, registering your books of accounts and paying your national Internal revenue taxes
• SSS, PhilHealth, and Pag-Ibig Fund registration – for registering yourself or company as an employer and for remitting your employees’ contribution together with your employer’s share
• Steps to follow before operating a Business are as follows : Set up an accounting system or hire an accountant, Advertise the business, Secure insurance for the business,
• Set up an accounting system or hire an accountant - Knowing how the business is doing financially is important for planning and survival.
• Advertise the business - No one will buy the products or services if customers do not know that the company exists. You can make use of the social media.
• Secure insurance for the business - Liability insurance protects the business in the event of litigation. Consider life and disability insurance, health insurance and fire insurance when you are leasing an office or storefront
• Good record keeping - can help protect the business, measure the performance and maximize profit.
• Records - are the source documents, both physical and electronic, that specify transaction dates and amounts, legal agreements and private customer and business details
• A systematic recording allows you to; Plan and work more efficiently, Meet legal and tax requirements, Measure profit and performance, Protect your rights, and Manage potential risk