1.

Department of Trade and To attain these sector outcomes

Industry (DTI) by 2022, we need to:
Anchored on the Values of
1.​ Increase local and foreign
Passion, Integrity, Creativity,
Competence, Synergy, and Love direct investments
of Country, and our Mission as 2.​ Increase competitiveness,
the government’s main economic innovativeness and
catalyst in Enabling innovative, resilience of industries and
competitive, job-generating, services
inclusive business, and 3.​ Improve access to finance,
Empowering consumers. These to production networks, and
we do in order to achieve our to markets
Vision 2022 of “A more inclusive 4.​ Enhance productivity,
and prosperous Philippines with efficiency, and resilience
employment and income 5.​ Ensure consumer access to
opportunities for all.” safe and quality goods and
Mandate services
The DTI is responsible for These we accomplish through six
realizing the country’s goal of major programs:
globally competitive and
innovative industry and services ●​ Exports and Investment
sector that contribute to inclusive Development Program
growth and employment ●​ Industry Development
generation. Pursuant to the Program
Philippine Development Plan ●​ SME Development Program
(PDP) 2017-2022, we shall ●​ Consumer Protection
endeavor to reduce inequality and Program
poverty by expanding economic ●​ Consumer Education and
opportunities in industry and Advocacy Program
services, and by increasing the ●​ Good Governance Program
access particularly of micro, small ○​ We commit to effect
and medium enterprises good governance by
(MSMEs), cooperatives and delivering public
overseas Filipinos (OFs) to these service that is
opportunities. predictable,
 participatory, ●​ Construction Industry
accountable, efficient, Authority of the
transparent, and Philippines (CIAP)​
honest.
○​ Promotes, accelerates,
Attached Agencies and regulates the
●​ Board of Investments construction industry.
(BOI) Its implementing
○​ Promotes investments boards are the
in industries and in the Philippine
regions for balanced Contractors
economic Accreditation Board
development. (PCAB), the
○​ The BOI is the lead Philippine Overseas
investment promotion Construction Board
agency of the (POCB), the
Philippine government. Philippine Domestic
●​ Center for International Construction Board
Trade Expositions and (PDCB), and the
Missions (CITEM)​ Construction
Industry Arbitration
○​ Assists exporters by Commission (CIAC).
developing their core ●​ Design Center of the
competencies in the Philippines (DCP)​
areas of marketing,
promotion, and ○​ Promotes industrial
capability building designs as a tool for
through professionally improving the quality
managed and and competitiveness of
well-selected programs Philippine products.
and activities, such as ○​ It services the design
organizing needs and
international trade requirements of small
fairs. and medium
enterprises by
 providing services on environment-friendly
product/package economic zones
design, product (ecozones).
technology ○​ PEZA administers and
demonstration, design manages the
& technical incentives of approved
information, and library special ecozones in
information on various parts of the
design-related topics. country.
●​ Intellectual Property Office ●​ Philippine International
of the Philippines Trading Corporation (PITC)​
(IPOPHL)​
○​ Provides trade and
○​ Oversees and trade-related services
enforces the overall to the private sector.
implementation of IP ○​ The PITC is also
rights, trademarks, engaged in the
and patents. importation of various
●​ National Development commodities and
Company (NDC)​ products to stabilize
supply and prices in
○​ Invests in businesses the domestic market.
where the private ●​ Philippine Pharma
sector is not willing to Procurement Incorporated
venture into. (PPPI)​
●​ Philippine Economic Zone
Authority (PEZA)​ ○​ A subsidiary of the
Philippine International
○​ Attracts foreign Trading Corporation
investors to develop or (PITC) and an affiliate
put up export of the National
manufacturing plants Development
or regional Company (NDC).
warehouses in ○​ It is the only
world-class, pharmaceutical
 government owned events management
and controlled support.
corporation (GOCC) ○​ It is also an events
tasked to provide low venue for MSMEs and
priced quality ensured large enterprises to
medicines to the promote their products
Filipino people and to as it markets, rents
which the out, and maintains
pharmaceutical exhibition and training
operation of PITC was room facilities.
transferred to. ●​ Small Business
●​ Philippine Trade Training Corporation (SB Corp.)​
Center (PTTC)​
○​ Supports the
○​ Designs and development of small
implements training enterprises by
programs on export promoting various
marketing and modes of financing
management, and credit delivery
entrepreneurial systems.
management, quality ●​ Technical Education and
management and Skills Authority (TESDA)
productivity, and trade ○​ The Technical
exhibition Education and Skills
management and Development Authority
participation. (TESDA) is the
○​ PTTC conducts government agency
post-training advisory tasked to manage and
and counseling supervise technical
services, offers education and skills
customized development (TESD)
in-company training in the Philippines
programs and
services, and provides DTI and MSMEs
●​ It has always been the DTI’s ●​ Entrepreneurs can find a
priority to help future and local Negosyo Center to help
budding entrepreneurs in them with business
visualizing and expanding registration and facilitate
their business, respectively. access to business services,
●​ DTI is there every step of the among others.
way, helping owners of ●​ In an unfortunate case
micro, small, and where entrepreneurs need to
medium-sized enterprises end their business, DTI
(MSMEs) start their trade provide them with the
through the requirements to properly do
conceptualization phase and so.
walk them through the
registration process. DTI Negosyo Centers Functions
●​ Every year, there are series and Services
of events and trainings lined ​ Business Registration
up to help MSME owners ■​ Facilitates
and aspiring entrepreneurs business
make the most out of their registration thru
ventures. the Philippine
●​ Online host of resources Business
which can guide Registry (PBR)
entrepreneurs in their and Barangay
venture, such as laws, Micro Business
relevant links, the MSMED Enterprise
Plan, publications and (BMBE)
statistics. ■​ Accepts and
●​ As entrepreneurs expand, facilitates all
DTI share the available registration
financing options, patent applications of
application guides, market Micro, Small,
development services, and and Medium
product development and Enterprises
export assistance. (MSMEs);
 ■​ Coordinates with MSMEs tailored
the respective according to their
local needs that
government include business
units (LGUs) development
and liaises with (product
concerned development,
government market
agencies to promotion, brand
process the duly development,
accomplished financing
forms submitted facilitation, etc.);
by the MSMEs; investment
■​ Integrates a facilitation;
unified business financial
process system management,
for MSMEs; financing
■​ Encourages facilitation,
government guidance and
institutions that access on
are related to the government
business assistance
application programs
process to help ■​ Coordinates and
promulgate facilitates
information processes of
regarding the government
Negosyo Center. related to the
​ Business Advisory set-up and
Services management of
■​ Free MSMEs;
one-on-one ■​ Builds local
business support
advisory networks and
services to establishes
 market linkages and informal
for MSME dissemination
development; campaigns
and ■​ Maps out all
■​ Facilitates information and
access to grants services
and other forms essential to
of financial prospective
assistance, entrepreneurs
shared service and prospective
facilities (SSF) investors
and equipment, especially in key
and other value chains and
support for economic
MSMEs. sub-sectors
●​ Business Information and within its
Advocacy jurisdiction
■​ Access to ■​ Promotes ease
information on of doing
market, business and
suppliers, access to
buyers, services for
government MSMEs within its
assistance jurisdiction
programs, etc. ■​ Supports private
■​ Establishes a sector activities
databank which relating to
shall be a source MSMEs
of all development
information ■​ Coordinates with
necessary for schools and
project organizations on
monitoring, the development
research and of youth
policy studies,
 entrepreneurshi ■​ Have jurisdiction
p program and supervision
■​ Encourages over all
women corporations,
entrepreneurshi partnerships or
p by giving associationswh
women access o are the
to information, grantees of
support, training primary
and credit franchises and/or
facilities a license or
●​ Monitoring and Evaluation permit issued by
■​ Monitors and the Government;
recommends ■​ Approve, reject,
business-proce suspend, revoke
ss improvement or require
for MSMEs; amendments to
■​ Establishes a registration
feedback statements, and
mechanism registration and
among the licensing
MSMEs in the applications;
respective ■​ Impose
jurisdiction of sanctions for
Negosyo the violation of
Centers laws and the
rules, regulations
and orders
2. Securities and Exchange issued
Commission (SEC) ■​ Prepare,
(excerpts from approve, amend
[Link] or repeal rules,
ality-policy-statement/) regulations and
Power and Functions Related to orders, and issue
MSME opinions and
 provide guidance papers, files and
on and supervise records, tax
compliance with returns, and
such rules, books of
regulations and accounts of any
orders; entity or person
■​ Issue cease and under
desist orders to investigation as
prevent fraud or may be
injury to the necessary for the
investing public; proper
■​ Compel the disposition of the
officers of any cases before it,
registered subject to the
corporation or provisions of
association to existing laws;
call meetings of ■​ Suspend, or
stockholders or revoke, after
members thereof proper notice
under its and hearing the
supervision; franchise or
■​ Issue subpoena certificate of
duces tecum registration of
and summon corporations,
witnesses to partnerships or
appear in any associations,
proceedings of upon any of the
the Commission grounds
and in provided by law;
appropriate
cases, order the Mandate
examination, The Securities and Exchange
search and Commission (SEC) is the
seizure of all national government regulatory
documents, agency charged with supervision
over the corporate sector, the SEC also develops and regulates
capital market participants, and the capital market, a crucial
the securities and investment component of the Philippine
instruments market, and the financial system and economy. As
protection of the investing it carries out its mandate, SEC
public. Created on October 26, contributes significantly to
1936 by Commonwealth Act government [Link], SEC
(CA) 83 also known as The is tasked with “serious
Securities Act, the Commission responsibility of enforcing all laws
was tasked to regulate the sale affecting corporations and other
and registration of securities, forms of associations not
exchanges, brokers, dealers and otherwise vested in some other
salesmen. government offices.”
Subsequent laws were enacted to
encourage investments and
more active public participation RA 9501: Magna Carta
in the affairs of private for Small Enterprise
corporations and enterprises, and
(Excerpts from "Know your SME Law:
to broaden the Commission’s
The Magna Carta for Small Enterprises"
mandates. [Link]
Recently enacted laws gave e-law-the-magna-carta-for-small-enterpri
greater focus on the Commission’s ses/)
role to develop and regulate the
The Magna Carta was passed in
corporate and capital market
1991 as RA 6977, amended by
toward good corporate
Republic Act 8289 in 1997, and
governance, protection of
further amended by RA 9501 in
investors, widest participation of
2008.
ownership and democratization of
[Link] is the registrar and The law is considered a
overseer of the Philippine landmark legislation which
corporate sector; it supervises reflects the current national policy
more than 600,000 active to foster a dynamic SME sector,
corporations and evaluates the particularly rural and agri-based
financial statements (FS) filed by manufacturing ventures.
all corporations registered with it.
This Law is guided by three for medium
principles in setting the pace for enterprises
small and medium enterprise
development: Other salient provisions of the
Magna Carta are:
○​ Minimal set of rules
○​ Establishment by the
and simplification of
procedures and BSP of an incentive
requirements. program to encourage
○​ Participation of private
lending to MSMEs
sector in the beyond mandatory
implementation of credit allocation to said
SME policies and enterprises, such as
programs possible reduction in
○​ Coordination of
bank’s reserve
government efforts. requirements.
○​ Monitoring by the
Three major provisions contained SMED Council of all
in Law: loan applications by
MSMEs in order to
○​ Creation of the Small
account for the
and Medium absorptive capacity of
Enterprise these enterprises.
Development Council ○​ Quarterly reporting to
○​ Creation of the Small
the SMED Council by
Business lending institutions on
Corporation the status of their
○​ Mandatory allocation
compliance with the
by lending mandatory allocation
institutions of a provision.
portion of their loan ○​ Imposition of
portfolio for lending to administrative
small and medium sanctions and other
enterprises – 8% for penalties (including a
micro and small fine of not less than
enterprises and 2%
 P500 thousand) by the RA 9178: The Barangay
Bangko Sentral ng
Micro Business
Pilipinas on
non-compliant lending Enterprise (BMBE) Law
institutions.
(Excerpts from "Know your SME Law:
The barangay Micro Business
The law has spurred the private
Enterprise (BMBE) Law"
banking sector to lend more to [Link]
small enterprises. Government e-law-the-magna-carta-for-small-enterpri
financing institutions, on the other ses/)
hand, like the Small Business
Corporation, Development Bank of Micro enterprises abound in the
the Philippines and LandBank economy.
have put up wholesale credit ○​ You see them as
programs using private backyard producers,
commercial, rural and thrift banks kitchen-based food
as conduits or retailers. ventures, vendors,
There is the perception that credit hawkers, sari-sari
resources for SMES are store and carinderia
bountiful and are just waiting for owners, street repair
takers. It is possible some small and service shops.
businessmen do not know these Many micro businesses belong to
facilities are available or are the informal sector of the
reluctant to apply for loans for one economy.
reason or another.
○​ This means they are
Banks and under lending not registered with
institutions that fall short of proper government
complying with the credit agencies (the
allocation requirement have the Department of Trade
option to avail of alternative Industry, the Mayor’s
compliance instruments being office, the Bureau of
offered by of the Small Business Internal Revenue,
Corporation — SME notes and etc.).
preferred shares
 ○​ While unlicensed micro the informal sector to
business may enjoy an come out from
edge in that they don’t “underground” and be
have to issue receipts integrated with the
and pay taxes, they mainstream
are also missing out on economy.
many growth ○​ It does this through the
opportunities that rationalization of
registered businesses bureaucratic
enjoy. restrictions, active
○​ Government and even intervention of
the private sector offer government specially
support and assistance in the local level, and
services to micro and the granting of
small businesses, incentives and benefits
including easy loans, so that micro
technology assistance, businesses can help
marketing support, generate employment
trade fair exposure, and alleviate poverty.
training and counseling ○​ The main attraction in
services. availing of the BMBE
○​ But one cannot is that it exempts
obviously avail of micro enterprises from
these benefits if his or taxes and fees for a
her business is number of years.
nameless, faceless,
unlisted, Here are the major provisions of
unrecognized. the BMBE law:

○​ A barangay micro
The Barangay Micro Business
Enterprise (BMBE) Law business enterprise
(BMBE) refers to any
○​ was enacted in 2002 business entity or
as Republic Act 9178 enterprise engaged in
to encourage those in the production,
 processing or ○​ Exemption from taxes
manufacturing of and fees.
products or ■​ All BMBEs shall
commodities, be exempt from
including income tax from
agro-processing, the operations of
trading and services the enterprise.
whose total assets ■​ LGUs are also
shall not be more encouraged
than P3 million either to reduce
pesos. the amount of
○​ Any qualified person, local taxes, fees
natural or juridical, or and charges
cooperative or imposed or to
association, may exempt the
apply for inclusion in BMBE from local
the BMBE Registry of taxes, fees and
a city or municipality. charges.
○​ A Certificate of ○​ Exemption from
Authority is issued by minimum wage law.
the office of the ■​ The BMBE shall
treasurer of each city be exempt from
or municipality. the coverage of
○​ The certificate, which the Minimum
is valid for two years Wage Law, but
and renewable at the employees
two-year intervals, shall
enables the BMBE to nevertheless be
avail of benefits entitled to the
under the law. same benefits
given to any
The benefits that a registered regular
BMBE may avail of are: employees like
social security
 and PhilHealth window, to
benefits. service the
○​ Technology transfer, credit
production, and needs of
management training, BMBEs,
and marketing either
assistance through
○​ Credit delivery retail or
■​ Certain wholesale
government lending, or
institutions both.
■​ the Land ■​ The
Bank of Governme
the nt Service
Philippine Insurance
s, the System
Developm and the
ent Bank Social
of the Security
Philippine System
s, the are also
Small required to
Business set up
Corporatio special
n, and the credit
Peoples programs
Credit and that will
Finance serve the
Corporatio financing
n are needs of
required by their
law to set respective
up a members
special who may
credit wish to
 establish a Aquino III on 15 July
BMBE. 2014, and which took
■​ Private banking effect on 13 January
and financial 2015.
institutions are ○​ The Department of
also encouraged Trade and Industry
to lend to (DTI) issued
BMBEs. Department
Administrative Order
Micro enterprises have good (DAO) No. 14-5 Series
potentials to grow, provide of 2014: “Implementing
income to the owners, create Rules and Regulations
jobs, and contribute to the for Republic Act No.
national economy — with a little 10644″
help from support agencies. ​ The basic policy of the
But first, business have to come “Go Negosyo Act”
forward and be recognized. ○​ to foster national
development,
RA 10644: Go Negosyo
promote inclusive
Act growth, and reduce
poverty by
(Excerpts from "Go Negosyo Act
[Link] encouraging the
c/go-negosyo-act/) establishment of
MSMEs that facilitate
Go Negosyo Act local job creation,
production and trade in
○​ the Act seeks to
the country.
strengthen micro,
​ Salient features of the Go
small and medium
Negosyo Act
enterprises (MSMEs)
○​ The law seeks to
to create more job
promote job
opportunities in the
generation and
country.
inclusive growth
○​ signed into law by the
through the
President Benigno S.
 development of Fund and BMBE
MSMEs in the country Fund
○​ Establishment of ○​ Recomposition of the
Negosyo Centers in MSME Development
all provinces, cities Council and its
and municipalities to additional functions.
promote “ease of doing
business and facilitate Negosyo Centers
access to services for ○​ The MSMED Council
MSMEs within its shall encourage
jurisdiction” public-private
○​ Technology transfer, partnerships (PPPs)
production and in the establishment
management training, and management of
and marketing Negosyo Centers.
assistance for MSMEs ○​ Coordination and
○​ Establishment of a collaboration with the
Philippine Business Local Government
Registry Databank Units (LGUs) and other
under the Department agencies and
of Trade and Industry organizations is
(DTI) to serve as a imperative to avoid
database of all duplication of efforts
business enterprises in and to foster
the country coordinated action.
○​ Establishment of a ​ Functions of Negosyo
Start-up Fund for Centers
MSMEs to provide ○​ The Centers will be
financing for the responsible for
development and promoting ease of
promotion of MSMEs doing business and
in priority sectors of facilitating access to
the economy to be services for MSMEs
sourced from the
MSME Development
within its jurisdiction, accomplish
such as: ed forms
■​ Business submitted
Registration by the
Assistance MSMEs
■​ Accept and ■​ Implement
facilitate all a unified
new business
registration registration
and process
renewal preferably
application through
of MSMEs, automated
including systems
application such as the
for Philippine
Barangay Business
Micro-Busi Registry
ness (PBR);
Enterprise ■​ Business
(BMBE); Advisory
■​ Coordinate Services
with the ■​ Assist
respective MSMEs in
local meeting
governmen regulatory
t units requiremen
(LGUs) ts to start
and liaise and
with maintain
concerned the
governmen business;
t agencies ■​ Build local
to process support
the duly networks
 and ■​ Ensure
establish manageme
market nt
linkages for guidance,
MSME assistance
developme and
nt through improveme
the Micro, nt of the
Small and working
Medium conditions
Enterprise of MSMEs;
Developme ■​ Co-organiz
nt e with the
(MSMED) local
Council chambers
and DTI; of
■​ Facilitate commerce,
access to other
grants and business
other forms organizatio
of financial ns and
assistance, governmen
shared t agencies,
service a
facilities mentoring
and program
equipment, for
and other prospective
support for and current
MSMEs entreprene
through urs and
national investors;
governmen ■​ Conduct
t agencies other
(NGAs); programs
 or projects requiremen
for ts of
entreprene MSMEs;
urial ■​ Promote
developme ease of
nt in the doing
country business
aligned and access
with the to services
MSMEs for MSMEs
developme within its
nt plan. jurisdiction;
■​ Business ■​ Support
Information and private
Advocacy sector
■​ Provide activities
information relating to
and MSMEs
services in developme
training, nt;
financing, ■​ Encourage
marketing governmen
and other t
areas as institutions
may be that are
required by related to
MSMEs the
■​ Establish business
and application
maintain a process to
databank help
which will promulgate
support information
business regarding
information the
 Negosyo nt for
Center; MSMEs;
■​ Coordinate ■​ Establish a
with feedback
schools mechanism
and related among the
organizatio MSMEs in
ns on the the
developme respective
nt of youth jurisdiction
entreprene of Negosyo
urship Centers.
program;
■​ Encourage
Members of the MSMED Council
women ○​ Department of Trade
entreprene and Industry (DTI)
urship ○​ Department of
through Agriculture (DA)
access to ○​ Department of Interior
information and Local Government
, training, (DILG)
credit ○​ Representatives from
facilities, the MSMEs and
and other women sectors and
forms of Small Business
assistance. Corporation.
■​ Monitoring and ​ Advisory Unit Members
Evaluation ○​ government agencies
■​ Monitor ○​ government and
and private financing
recommen institutions
d ○​ labor and academe
business-p representatives.
rocess
improveme
Other Forms of Assistance organizations are Ideaspace,
extended by the Negosyo Endeavor Philppines, [Link],
Centers to MSMEs and Kickstart Ventures all of which
provide assistance for the
●​ Start-up Fund for MSMEs
development and growth of
to provide financing for the entrepreneurs and
development and promotion entrepreneurship in the country.
of MSMEs in priority sectors
of the economy as specified Young Entrepreneurship
in the MSMED Plan. Society Philippines (YES)
●​ Philippine Business
Registry Databank (PBRD) ●​ The Young Entrepreneurs
shall be established under Society Philippines (YES) is
the DTI to serve as a an organization of young
repository of information of entrepreneurswho share a
all business enterprises in common passion for
the Philippines. excellence in business
and professional growth.
Featured in this topic are ●​ YES Philippines was
prominent organizations that established to educate,
contribute largely for the promote, encourage,
promotion and growth of network, and develop
entrepreneurship. YES Philippines aspiring and successful
and Go Negosyo are two of the entrepreneurs.
very active organizations that ●​ Through a series of
provide different activities and engagements with
programs for entrepreneurs. YES successful business owners
Philippines' activities are centered and executives, learning
on competitions both local and events, mentorship and
global that promotes startup networking opportunities,
entrepreneurs. Go Negosyo of members of the society learn
Philippine Center for the crucial elements
Entrepreneurship is more on necessary to become
summits and mentoring programs successful entrepreneurs.
for entrepreneurs. Other
YES Mission and Vision ■​ Each
participating
●​ Envisioned to represent over country runs a
5,000 entrepreneurs in the business
region by year 2020, YES concept contest
aims to stimulate interest in for entrepreneurs
entrepreneurship among its within the
members and encourage creative
them to be passionate about industries and
building sustainable sends the
ventures. winning
●​ It also strives to provide its entrepreneur/tea
members with a lifelong m to the
learning and a support international
platform to minimize risks finals where the
and to maximize success in entrepreneurs
their business ventures. will:
■​ meet
YES Events
and
comp
ete
with
other
creati
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entre
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●​ Creative Business Cup urs
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■​ Worldwide, the ■​ The road from
creative being an
industries entrepreneur in
contribute the creative
significantly to industries to
growth and jobs become a
– and to the growing
development of company is more
new, innovative challenging than
solutions to the for entrepreneurs
challenges that in other sectors.
companies and ■​ All entrepreneurs
societies face. face challenges
■​ Traditional in business
industries development,
become more internationalizati
innovative and on and access to
competitive finance, but for
when entrepreneurs
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■​ Market potential: and brightest
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concept has a investors,
large market hackers, and
potential tech fans to
pitch their
Ultimately, the Creative business ideas.
Business Cup is about change ■​ Startup Summit
and empowerment, supporting organizes one of
entrepreneurs around the world. the leading
startup
conferences in
the Philippines
where the best
entrepreneurs
meet the leading
●​ Startup Summit investors,
■​ Startup Summit thought leaders,
is the country’s business angels
pre-eminent and accelerators
event for for collaboration
debuting and networking
revolutionary opportunities.
startups, ■​ Startup Summit
introducing is a one-day
game-changing startup
technologies and conference for
discussing founders,
what’s top of entrepreneurs,
mind for the local startups, and
startup investors.
innovators. ■​ This
confe
 rence ​ Showcase of
focus Philippines’ Best
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selec ■​ Startup Summit
ting is an annual
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startu Young
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startu ■​ Startup Summit
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promotes community.
entrepreneurial ■​ It is a national
innovation, event that
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opportunity for best of
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collaborate, startups to the
compete and world.
maximize their ​ Great Learning
resources. Opportunities
■​ Startup Summit
gathers
successful on
founders, the
investors, and future
entrepreneurs .
who take the ■​ Startup Summit
stage to share is a great
their stories in opportunity to
fireside chats influence the
and keynotes. hearts and
■​ One minds of young
stage entrepreneurs,
is aspiring startup
purel founders, and
y investors from
dedic the Philippines.
ated ​ Overview
to ■​ Startup Summit
pitch will invite 50
ing. most innovative
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filled ■​ The top 15
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ts the Startup
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ng ■​ The top 4 startup
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age between 16
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■​ The startup
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finance, health
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a on
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ar
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. [Link]
■​ Start Philippine Center for
Up Entrepreneurship (PCE)
Cup ​ a non-stock, non-profit
can organization that
also advocates for a
incre change in mindset
ase and attitude
ties ​ “We believe that
and Filipinos can address
enga poverty in the country
geme by engaging in
nt entrepreneurship and
with developing an
Glob optimistic,
al passionate, creative
Entre and innovative,
pren resourceful, diligent
eurs and persevering
hip character. We
Wee encourage everyone to
k. take charge and make
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 Negosyo hopes to can address
demystify poverty by
entrepreneurial engaging in
success and entrepreneurship
popularize and developing
entrepreneurship as an character.
alternative to ■​ Through its
unemployment, various
job-seeking or programs, Go
migration. We are a Negosyo aspires
partner in improving to demystify
entrepreneurship entrepreneurial
education, and in success and
providing a popularize
marketplace of ideas, entrepreneurship
innovations, business as an alternative
models and best to
practices. In short, we unemployment,
aim to catalyze the job-seeking or
development of migration.
entrepreneurship in the ■​ The Go Negosyo
country. An Inspiring Women
entrepreneurial culture Entrepreneurs
would lead to an Campaign
entrepreneurial nation selects 50
and, consequently, to women every
improved economy for year who typify
the country.” unparalleled
​ Go Negosyo success,
■​ Go Negosyo is character,
the advocacy passion, and
arm of the PCE, head-strong
a non-profit leadership in the
organization that world of
believes Filipinos
 entrepreneurship help them
. move up in
​ How Go Negosyo life.
Started ■​ W
■​ After being i
appointed t
in 2005 by h
President t
Gloria h
Macapagal e
-Arroyo as h
the e
Presidentia l
l p
Consultant o
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Entreprene l
urship, i
Joey k
Concepcio e
n m
envisioned i
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movement d
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enterprisin s
g attitude t
among e
Filipinos - a e
mindset s
that would ,
 G ment
o organizatio
N ns
e (including
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o chambers
s and
y profession
o al
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a ns),
s microfinanc
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r governmen
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■​ Since its governmen
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Negosyo linkages
went on to with
forge members
partnership of both
s not only private and
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corporation allowed us
s and to increase
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urs but access to a
also with negosyo
academic support
institutions, system,
non-govern and
 facilitate a urial
nationwide climate for
movement. the
​ Motto Philippines:
■​ "teach a one that
nation how would lead
to fish, to a
feed the country of
nation enterprisin
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lifetimes". progressiv
The e Filipinos
statement who are
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effort of all d, and who
our don't rely
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innovation We hope to
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​ Dream ng
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entreprene inspiring
 and by ○​ Ideaspace is a
teaching. non-profit organization
​ 3 Ms of MSME dedicated to
Development supporting Filipino
■​ Mentorship technopreneurs.
■​ Money ○​ Their mission is to
■​ Market inspire, incubate and
​ Programs connect them.
■​ Mentor Me ○​ Since 2012, Ideaspace
Online has enabled 52 tech
■​ National Summit startups, including
■​ Mentor Me On Taxumo and PayMaya
Wheels Escrow.
■​ Digital Summit ○​ Aside from providing
■​ Tourism Summit funds, they also offer
■​ Youth programs that can
Entrepreneurship inspire the next
Summit generation of startups.
■​ Women Summit ■​ These
■​ Agriprenuership programs
Development can help
Programs them turn
■​ Kapatid Mentor their
Me brilliant
ideas into
Pilipinas Angat Lahat Alliance marketable
AVP businesses
Other Organizations in the .
Philippines ○​ Every year, they
organize a contest
(Excerpts from "Next Step for called Ideaspace
entrepreneurs in Asia" Startup Competition
[Link]
where start-ups get the
eurs-organization-philippines/)
chance to take home
Ideaspace funding and support
 from various high-impact
companies and entrepreneurs.
mentors ○​ Endeavor Philippines
■​ Start-ups was launched in 2015.
that made ■​ With the
the cut will help of 41
receive Filipino
equity-free business
funding. mentors,
■​ They also the team
received guides
housing, budding
transportati entreprene
on, office urs in the
space, and country.
software ○​ Endeavor Investor
support. Network help extend
■​ Executives start-ups’ reach to
from leading investment
various firms.
companies ■​ They
also provide
mentored access to
and trained high-growt
the h
founders. companies
​ and local
investment
Endeavor Philippines
partners.
○​ Endeavor is a global ■​ They also
organization that created
selects, mentors, and Endeavor
accelerates Catalyst,
an
innovative
 and ○​ They also want to
passive increase the number of
investment software and
fund that technology
comes professionals in the
from country.
donated ○​ The community
capital. provides many
■​ The programs such as
funding is Geeks on a Beach,
used to Geeks on a Plane,
co-invest Founder’s Friday, and
alongside Startup Weekend.
qualified ■​ Here,
lead entreprene
investors. urs and
○​ To be part of their founders
programs, you need to can
go through a multi-step expand
selection process their
network,
[Link] learn, and
○​ TechTalks is an share
independent ideas.
community of Workshops
business, technology, also
and startup happen in
enthusiasts. these
○​ Their main goal is to events.
offer valuable ○​ Techtalks offers other
programs and events services like career
to help startups planning, consulting,
survive. and business
matching.
Kickstart Ventures HealthTech
, FinTech,
○​ Kickstart Ventures
eCommerc
provides funding, e, Social
facilities, expertise and Impact)
business connections ■​ Technology
for startups. innovations
○​ They’re a fully-owned ■​ Global or
subsidiary of Globe regional
Telecom, a leading web and
telecommunications mobile
company. platforms
○​ Since its launch in (software,
2012, Kickstart has application
invested in 13 startups s)
like Kalibrr, Medix, and ■​ Disruptive
Zipmatch. business
○​ The organization can models
invest up to $5 million
in growth-stage
companies.
Registering your Business with
■​ Their
Government Agencies
typical
stage-seed Bureau of Internal Revenue
deals are (BIR)
at $30,000
for 15% ●​ Who Needs to Register?
equity. ○​ Sole Proprietorship
○​ Kickstart look for ○​ Corporation/Partnershi
startups that fall into p
these categories:
You cannot operate your business
■​ Digital
without your business tax
media
identification number (TIN).
businesses
(Edutech,
●​ You need to do these at Taxpayer
the BIR: Identificatio
○​ Register your business n Number
establishment and all (TIN), you
its branch offices, if should also
any. be given
■​ You do this the “ask for
at the BIR receipt”
Revenue sign to be
District posted on
Office your
(RDO) in business
the place establishm
where your ent.
business is ○​ Register your books of
located. accounts.
■​ Once you ■​ You
obtain your accomplish
Certificate this at the
of same
Registratio RDO.
n, you ○​ Request for permit to
must print and issue receipts
display it in and invoices.
a ■​ You must
conspicuou thereafter
s place post a
within your notice in
business your
establishm business
ent. premises
■​ Along with stating that
the your
issuance of establishm
your
 ent issues Title/Tax Declaration if
receipts you own the place of
○​ You must also request business.
for a permit to use a ○​ Business location map
cash register and point
of sale (POS) Department of Trade and
machines, as well as a Industry
permit to use ●​ Who needs to register?
loose-leaf books of ○​ Sole Proprietorship
accounts, accounting ●​ What to do?
records or a ○​ Business Registration
computerized ○​ Business Name
accounting system. Registration
■​ If your ■​ Before you can
business conduct
has business in the
branches, country, you
each need to register
branch a name
must have associated to
its own your business.
books of ○​ Prepare at least three
accounts. (3) proposed business
●​ BIR business registration names and observe
document requirements: the DTI registration
○​ DTI or SEC requirements:
certificates. ■​ Applicant must
■​ Bring be above 18 and
original a Filipino citizen
and photo ■​ Bring two (2)
copies copies of
○​ Mayor’s Permit completed
○​ Contract of Lease if application
you rent the place of
business, or Land
 forms, signed by registrations),
the owner investigate violations
■​ Bring at least two of securities laws and
(2) photo-bearing impose sanctions, and
government-issu make policies with
ed IDs regard to the market in
○​ Upon submission, the securities.
next step is to pay for ○​ It also supervises
the registration and stock and bond
documentary stamp brokers as well as the
tax. stock exchanges.
●​ DTI Business Registration ○​ Basic SEC
can be done online. requirements for
○​ The DTI Application registering a
Form is available on corporation or
their website partnership:
■​ Cover Sheet for
Securities and Exchange Registration
Commission (SEC) ■​ Reservation
●​ Who Needs to Register? Payment
○​ Corporation/Partnershi Confirmation
p ■​ Articles of
●​ SEC Incorporation
○​ The SEC is an agency (AI)
under the Philippine ■​ By-laws (BL)
Department of Finance Philippine Economic Zone
that is responsible for Authority (PEZA) / Board of
regulating the Investments (BOI)
securities industry.
○​ It supervises all ●​ Who Needs to Register?
registered business ○​ Corporation/Partnershi
entities in the country p
(with the power to ●​ PEZA/BOI
suspend and revoke
 ○​ The PEZA and BOI are materials, machineries,
focused on businesses and spare parts.
that are ○​ Exemption on
export-oriented, wharfage duties and
specifically in export tax is applicable
designated Special as well.
Economic Zones. ○​ Zero VAT on local
○​ The BOI is the primary purchases and an
agency responsible for exemption for all local
investment promotion government imposts,
in the country and fees, licenses, or
offers a wide range of taxes.
incentive schemes for ○​ Zero expanded
both Filipino and withholding tax.
foreign investors. ○​ Non-fiscal incentives
●​ PEZA Incentives such as simplified
○​ An Income Tax Holiday import-export
(ITH) of 4 years for procedures,
non-pioneer projects employment of
and 6 years for pioneer non-resident foreign
projects. Extension nationals, special visas
years can also be for foreign employees
granted provided the in certain positions,
company meets and more.
certain criteria.
○​ After the ITH expires, a
Local Barangay
5% Special Tax on ●​ Who Needs to Register?
Gross Income and ○​ Sole Proprietorship
exemption from all ○​ Corporation/Partnershi
local and national p
taxes is applicable. ●​ Barangay Clearance
○​ Zero taxes and duties ○​ You need to secure a
in the importation of barangay clearance
capital equipment, raw first in the barangay
 where your business ■​ Bureau of
will be operating. Food and
○​ It is also a requirement Drug
when registering for a Administrat
Mayor’s Permit. ion (BFAD)
●​ Main documents for and
Barangay Clearance Departmen
application: t of Health
○​ DTI or SEC certificates (DOH) for
– bring original and drugstores,
photocopies bakeries,
○​ Business location or other
sketch/map food and
○​ Contract of lease if you health
rent the place of related
business, or land businesses
title/tax declaration if
you own the place of Mayor's Office
business. ●​ Who Needs to Register?
○​ Duly filled out ○​ Sole Proprietorship
barangay clearance ○​ Corporation/Partnershi
application form p
○​ Depending on the type ●​ Business Permit
of business, other ○​ A Business Permit is
documents may be sometimes also
required, such as referred to as a
below examples: Mayor’s Permit
■​ National because it is
Food processed under the
Authority Mayor's Office
(NFA) ○​ Securing a business
License for permit from the
rice/corn Mayor’s Office can
and wheat only be done after
dealers
 accomplishing two ○​ Philippine Health
other registrations: Insurance Corporation
■​ The registration ■​ for medical and
of your business health related
with the benefits
Department of ●​ Pagibig
Trade and ○​ Home Development
Industry or DTI Mutual Fund
(for single ■​ for housing loans
proprietorship) or and other loans
with the
Securities and When the business has started
Exchange operating and you’ve hired more
Commission or employees, you’ll need to register
SEC (for them with PhilHealth for their
partnership or health care, Home Development
corporation) Mutual Fund (HDMF) and SSS.
■​ Securing a
For business operations with five
Business (5) employees or more, you’ll need
Barangay to register with the Department of
Clearance Labor and Employment (DOLE).

SSS/PHILHEALTH/PAG-IBIG
Business Set-Up,
●​ Who Needs to Register? Start-Up, and Growth
○​ Sole Proprietorship
(Excerpts from "Entrepreneurship and
○​ Corporation/Partnershi
Innovation Toolkit"
p [Link]
●​ SSS shipandinnovationtoolkit/chapter/chapter
○​ Social Security System -7-business-set-up-start-up-and-growth/
■​ primarily to
provide benefits Set-Up
such as pension, ○​ The goal of the
loans and others venture set-up phase
●​ Philhealth
is to implement the
 plans needed to start protection to
the business prior to original
its actual start-up. software
○​ This might include created by
developing and someone.
testing the products ■​ They also protect
or services the music,
entrepreneur literature, and
anticipates selling. dramatic and
○​ It also includes other artistic
planning around works for the life
protecting any of the author of
intellectual property the work
that the venture might ■​ Copyright arises
have and determine when someone
how to gain creates a work
competitive whether or not
advantages over its they register the
rivals. copyright.
​ Protecting Intellectual ■​ R.A. 8293 -
Property Philippine Law
■​ Intellectual on Copyright
property refers ○​ Patents (R.A. 8293)
to the ideas, ■​ Patentable
goods, and Inventions are
services that any technical
can be legally solution of a
protected by problem in any
copyrights, field of human
patents, trade activity which is
secrets, and new, involves an
trademarks. inventive step
○​ Copyright and is industrially
■​ Copyrights applicable shall
provide
 be Patentable. ■​ Right to a
(Section 21) Patent belongs
■​ It to the inventor,
may his heirs, or
be, or assigns.
may (Section 28)
relate ■​ Whe
to, a n two
prod (2) or
uct, more
or perso
proc ns
ess, have
or an jointly
impr made
ove an
ment inven
of tion,
any the
of the right
foreg to a
oing. paten
(Secti t
on shall
21) belon
■​ Patents provide g to
protection to them
inventors by jointly
giving them .
recourse if (Secti
others make, on
use, or sell their 28)
invention ■​ First-to-file-rule
without - If two (2) or
permission more persons
 have made the improvements
invention on products or
separately and processes.
independently ■​ Patents provide
of each other, a time-limited,
the right to the legally
patent shall protected,
belong to the exclusive right
person who to make, use
filed an and sell an
application for invention.
such invention, ■​ In this way,
or where two or patents serve as
more a reward for
applications are ingenuity”
filed for the same ○​ Trademarks (R.A.
invention, to the 8293)
applicant who ■​ "Mark" means
has the earliest any visible sign
filing date or, capable of
the earliest distinguishing
priority date. the goods
(Section 29) (trademark) or
■​ The term of a services
patent shall be (service mark) of
twenty (20) an enterprise
years from the and shall include
filing date of the a stamped or
application. markedcontainer
(Section 54) of goods.
■​ Patents apply to ■​ The rights in a
newly mark shall be
developed acquired through
technology as registration
well as to made validly in
 accordance with Regis
the provisions of ter by
this law. the
■​ The applicant or Direc
the registrant tor.
shall file a (Secti
declaration of on
actual use of the 124.2
mark with )
evidence to that ■​ A certificate of
effect, as registration of a
prescribed by the mark shall be
Regulations prima facie
within three (3) evidence of the
years from the validity of the
filing date of the registration, the
application. registrant's
■​ Other ownership of the
wise, mark, and of the
the registrant's
appli exclusive right
catio to use the same
n in connection
shall with the goods or
be services and
refus those that are
ed or related thereto
the specified in the
mark certificate.
shall (Section 138)
be ■​ A certificate of
remo registration shall
ved remain in force
from for ten (10)
the years: Provided,
that the (Secti
registrant shall on
file a declaration 145)
of actual use ○​ Product/Process/Tra
and evidence to de Secrets
that effect, or ■​ Product/proces
shall show valid s/trade secrets
reasons based come into play
on the existence when patents are
of obstacles to not filed, but
such use, as instead
prescribed by the innovations are
Regulations, kept secret.
within one (1) ■​ For
year from the exam
fifth ple,
anniversary of the
the date of the formu
registration of la for
the mark. Coca
■​ Other -Cola
wise, and
the the
mark recip
shall e for
be the
remo KFC
ved herbs
from and
the spice
Regis s are
ter by not
the regist
Offic ered
e. anyw
 here, ○​ In these cases the best
but protection is to
inste out-compete rivals with
ad production, pricing,
are distribution, selling,
kept and other strategies.
secre ​ Other Set-Up
t by Considerations
their ○​ Among the other
owne set-up activities for
rs. new ventures are the
■​ This following:
prote ■​ Set up
ction organizational
lasts and legal
for as structure
long ■​ Sole
as Propr
the ietors
secre hip,
t is Partn
kept. ershi
​ Competitive Performance p,
○​ While entrepreneurs Limit
must always strive to ed
establish competitive Partn
performanceadvantag ershi
es, it is particularly p,
important when the Corp
potential protection oratio
afforded by patents, n or
copyrights, trade Coop
secrets, or erativ
trademarks is weak. e
■​ Set up control impro
systems veme
■​ Set up nts,
relationships signa
with suppliers ge,
and others pay
■​ Set up depo
everything else sits,
in preparation for etc.
start-up ■​ Get
■​ Choo busin
se ess
name licens
■​ Chec e,
k permi
zonin ts,
g, etc.
equip ■​ Set
ment up
price banki
s, ng
suppl arran
iers, geme
etc. nts
■​ Choo ■​ Set
se up
locati legal
on and
■​ Arran acco
ge untin
lease g
terms syste
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lease (or
hold profe
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als) ods,
■​ Order etc.
equip ■​ Order
ment, busin
locks ess
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Business Model Canvas The Business Model Canvas

(Excerpts from "Entrepreneurship and ○​ The Business Model

Innovation Toolkit" Canvas tool is based
[Link] on the premise that a
shipandinnovationtoolkit/chapter/chapter start-up is something
-4-business-models/
quite different than an
Business Models? ongoing venture.
○​ A start-up should not
○​ Magretta (2002) be viewed as a
described business smaller version of a
models as “stories company because
that explain how starting-up a company
enterprises work” requires very different
○​ Osterwalder, Pigneur, skills than operating
and Clark noted that one does.
they reveal “the ○​ A start-up that is still a
rationale of how an start-up after some
organization creates, time—maybe after a
delivers, and couple of years for
captures value” some kinds of
○​ Chatterjee said that “A start-ups—is actually a
business is about failed enterprise
selling what you make since it hasn’t
for a profit and converted into an
business model is a ongoing venture
configuration (activity
 (Osterwalder et al., resources and
2010). activities
○​ The business model ○​ Key activities
canvas is made up of ■​ What key
nine parts that, activities do our
together, end up value
describing the propositions
business model. require?
■​ Our distribution
channels?
○​ ■​ Customer
​ Elements of Business relationships?
Model Canvas (BMC) ■​ Revenue
○​ Key partners streams?
■​ Who are our key ■​ Categories:
partners? production;
■​ Who are our key problem-solving;
suppliers? platform/network
■​ Which key ○​ Key resources
resources are we ■​ What key
acquiring from resources do our
partners? value
■​ Which key propositions
activities do require?
partners ■​ Our distribution
perform? channels?
■​ Motivations for ■​ Customer
partnerships: relationships?
optimization and ■​ Revenue
economy; streams?
reduction of risk ■​ Types of
and uncertainty; resources:
acquisition of physical;
particular intellectual
(brand patents,
 copyrights, data); ■​ What type of
human; financial relationship does
○​ Value propositions each of our
■​ What value do customer
we deliver to the segments expect
customer? us to establish
■​ Which one of our and maintain
customer’s with them?
problems are we ■​ Which ones have
helping to solve? we established?
■​ What bundles of ■​ How are they
products and integrated with
services are we the rest of our
offering to each business model?
customer ■​ How costly are
segment? they?
■​ Which customer ■​ Examples:
needs are we personal
satisfying? assistance;
■​ Characteristics: dedicated
newness; personal
performance; assistance;
customization; self-service;
“getting the job automated
done”; design; services;
brand/status; communities;
price; cost co-creation
reduction; risk ○​ Customer segments
reduction; ■​ For whom are
accessibility; we creating
convenience/usa value?
bility ■​ Who are our
○​ Customer most important
relationships customers?
 ■​ Mass market; and
niche market; services?
segmented; ■​ Evaluation
diversified; – How do
multi-sided we help
platform. customers
○​ Channels evaluate
■​ Through which our
channels do our organizatio
customer n’s value
segments want proposition
to be reached? ?
■​ How are we ■​ Purchase
reaching them – How do
now? we allow
■​ How are our customers
channels to
integrated? purchase
■​ Which ones work specific
best? products
■​ Which ones are and
most services?
cost-efficient? ■​ Delivery –
■​ How are we How do we
integrating them deliver a
with customer value
routines? proposition
■​ Channel phases: to
■​ Awarenes customers
s – How do ?
we raise ■​ After sales
awareness – How do
about our we provide
company’s post-purch
products ase
 customer volume
support? dependent
○​ Revenue streams ■​ Dynamic pricing:
■​ For what value negotiation
are our (bargaining);
customers really yield
willing to pay? management;
■​ For what do they real-time-market
currently pay? ○​ Cost structure
■​ How are they ■​ What are the
currently paying? most important
■​ How would they costs inherent in
prefer to pay? our business
■​ How much does model?
each revenue ■​ Which key
stream resources are
contribute to most expensive?
overall ■​ Which key
revenues? activities are
■​ Types: asset most expensive?
sale; usage fee; ■​ Is your business
subscription more: cost driven
fees; (leanest cost
lending/renting/le structure, low
asing; licensing; price value
brokerage fees; proposition,
advertising maximum
■​ Fixed pricing: list automation,
price; product extensive
feature outsourcing);
dependent; value driven
customer (focused on
segment value creation,
dependent; premium value
proposition).
 ■​ Sample customers and the other
characteristics: business operations (Osterwalder
fixed costs et al.).
(salaries, rents,
utilities); variable A business plan shouldn’t be
costs; created until the above has been
economies of done because you need to know
scale; what your business model is
economies of before you can really create a
scope business plan (Osterwalder et
al.).
The idea is to keep adding
descriptions or plans to the nine This seems to imply that the
components to create the initial Business Model Canvas is best
business model and then to suited to technology-based and
actually do the start-up activities other types of companies that can
and replace the initial be basically started and operated
assumptionsin each of the nine in some way that can later be
parts with newer and better converted into an ongoing venture.
information or plans to let the By starting operations and
business model evolve. making adjustments as you go,
This model is partly based on the you are actually doing a form of
idea that the owner should be the market research that can be
one interacting with potential compiled into a full business
customers so he or she fully plan when one is needed.
understands what these potential According to Osterwalder, et al.,
customers want. the things we typically teach
These interactions should not only people in business school are
be done by hired sales people, at geared to helping people survive
least until the business modelhas in larger, ongoing businesses.
evolved into one that works, What is taught—including
which can only happen when the organizational structures,
venture owner is completely reporting lines, managing sales
engaged with the potential
teams, advertising, and similar the processes are already set up.
topics—is not designed to help For example, sales teams might
students understand how a be in the field trying to make sales
start-up works and how to deal and blaming the product
with the volatile nature of new developers for the difficulty they
ventures. The Business Model are having, and the product
Canvas idea is meant to help us developers might be blaming the
understand start-ups. sales teams for not being able to
sell the product properly.
The Business Model Canvas tool
is intended to be applied when The real issue might be that the
business operations can be company simply isn’t meeting
started on a small scale and customers’ needs and they don’t
adjustments can continually be have any good mechanism for
made until the evolving business detecting and understanding and
model ends up working in real life. fixing this problem.

This is in contrast to the more Developing a Business

traditional approach of
Plan
pre-planning everything and then
going through the set-up and (Excerpts from "Business Plan
start-up processes and ending up Development Guide"
with a business venture that [Link]
opens for business one day ndevelopmentguide/chapter/chapter-1-d
eveloping-a-business-plan/ (Links to an
without having proven at all that
external site.)
the business model it is founded
upon will even work. Business Plan

These traditional start-ups ○​ A document that

sometimes flounder along as the presents a complete
owners find that their plans are not and detailed picture of
quite working out and they try to the new business and
make adjustments on the fly. the strategy to launch
that business
It can be difficult to make ○​ Business plans are
adjustments at this time because written to help
 entrepreneurs achieve ■​ Describes how
their goals the strategy will
○​ A formal business plan be implemented
helps prepare for all ■​ Provides a
aspects of a framework for
business operations analysis of key
issues
Purpose for Developing a ■​ Provides a plan
Business Plan for the
○​ Business plans are development of
developed for both the business
internal and external ■​ Helps the
purposes. entrepreneur
○​ Internally, develop and
entrepreneurs develop measure critical
business plans to help success factors
put the pieces of their ■​ Helps the
business together. entrepreneur to
○​ Externally, the most be realistic and
common purpose is to test theories
raise capital. ​ External Purposes
​ Internal Purposes ○​ The business plan
○​ As the road map for a provides the most
business’s complete source of
development, the information for
business plan: valuation of the
■​ Defines the business. Thus,
vision for the ■​ It is often the
company main method of
■​ Establishes the describing a
company’s company to
strategy external
audiences such
as potential
sources for
 financing and ○​ Business plan writers
key personnel should adhere to
being recruited. specific
■​ It should assist communication
outside parties principles.
to understand ​ Communication Principles
the current ○​ First, business plans
status of the must be written to
company, its meet the expectations
opportunities, of targeted readers in
and its needs for terms of what they
resources such need to know to
as capital and support the proposed
personnel. business.
○​ They should also lay
Business Plan Development out the milestones
Principles that investors or other
○​ Hindle and Mainprize targeted readers need
suggested that to know.
business plan writers ○​ Finally, writers must
must strive to clearly outline the
effectively opportunity, the
communicate their context within the
expectations about the proposed venture will
nature of an uncertain operate (internal and
future and to project external environment),
credibility. and the business
○​ The liabilities of model.
newness make ​ Credibility Principles
communicating the ○​ Business plan writers
expected future of new should build and
ventures much more establish their
difficult than for credibility by
existing businesses. highlighting
important and
 relevant information involvement with the
about the venture venture
team.
○​ Writers need to General Guidelines for
elaborate on the Developing Business Plans
plans they outline in 1.​ Many businesses must
their document so that have a business plan
targeted readers have to achieve their goals.
the information they 2.​ Using a standard
need to assess the format helps the
plan’s credibility. reader understand that
○​ To build and establish the you have thought
credibility, they must everything through,
integrate scenarios to and that the returns
show that the justify the risk.
entrepreneur has 3.​ The following are
made realistic some basic guidelines
assumptions and has for business plan
effectively anticipated development.
what the future holds ​ As You Write Your
for their proposed Business Plan:
venture. 1.​ If appropriate, include
○​ Writers need to nice, catchy,
provide professional graphics
comprehensive and on your title page to
realistic financial make it appealing to
links between all targeted readers, but
relevant components don’t go overboard.
of the plan. 2.​ Bind your document so
○​ Finally, they must readers can go
outline the deal, or through it easily
the value that targeted without it falling apart.
readers should expect You might use a
to derive from their three-ring binder, coil
 binding, or a similar main
method. headi
■​ Make sure ng
the binding ■​ 1
method .
you use 1
does not .
obscure 1
the .
information F
next to i
where it is r
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your pages are s
ordered and numbered u
correctly. b
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plan convention is to s
number all major u
sections and b
subsections within h
your plan using the e
format as follows: a
■​ 1. First d
main i
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features in
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s show some
o information
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p ■​ Y
l o
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a your plan
m should be
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o by
r indicating
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t appropriate
h time frame,
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c 7.​ Before finalizing your
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g appeal to your targeted
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l
o Parts of the Business
w Plan (Part 1)
e
r (Excerpts from "Business Plan
Development Guide"
-
[Link]
t ndevelopmentguide/chapter/chapter-1-d
h eveloping-a-business-plan/ (Links to an
a external site.)
n
- Executive Summary
m ○​ This is the last
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r write (or re-write) and
k finalize.
e
t
○​ Executive summaries ■​ Write the
can be longer in executive
business plans than is summary
normally the case with by fully
other documents. understan
■​ A general ding for
rule of whom you
thumb is are writing
that this it and then
section can appealing
be up to to their
three need for
pages in information
length.
○​ In writing the executive
1. Introduction
summary include only ■​ Write a brief
the relevant introduction
information that helps ■​ It is in this
establish your section that you
credibility might describe
○​ Write your executive the purpose (or
summary after you purposes) for
have written everything your plan.
else for your plan ■​ It is particularly
○​ In this section include useful to use the
information relevant to entire
targeted readers as introduction
this is the place where section to tell the
they are most likely to story of your
form their first business
impressions of the concept
business idea and ​ 1.1 Value Proposition
decide whether they
wish to read the rest of
the plan
■​ Describe what secondary value
your value that explains why
proposition it should be
■​ The value appealing for
proposition investors to
outlines the invest in the
benefits your business
venture ​ 1.2 Business
promises to Concept
deliver ■​ If relevant, this
■​ Note that you subsection may
must be include a
cognizant of from description of
whose the history
perspectives you behind your
are outlining the business idea
value and the
proposition. evolution of
■​ A value your business
proposition concept
normally ■​ When you
indicates why describe the
your business business
provides concept make it
something that short and sweet
customers will be and only include
willing to pay relevant
enough for to information that
ensure that the helps establish
venture can your credibility
sustain itself ■​ Describe things
financially like why you
■​ In some cases, named the
business plan venture as you
writers include a did and why you
wanted to start and
this kind of other
business. parts)
■​ Mayb .
e you ■​ This subsection
want may be a good
ed to place in which to
start describe your
this business model
busin ■​ Expe
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beca that
use, as
for you
exam devel
ple, op
you your
have busin
speci ess
al plan,
skills your
you busi
want ness
ed to mod
apply el
(but may
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dupli to
cate chan
mater ge.
ial ■​ For
from exam
the ple,
mark many
eting busin
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plans and
start retail
out opera
descr tion
ibing might
a be
busin best
ess starte
mode d out
l that as
comb only
ines a
two manu
or factur
more ing
busin ventu
ess re, or
functi a
ons store-
when base
it d
may retail
be opera
best tion
to inclu
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with onlin
just e
one – sales
for might
exam be
ple, a best
manu starte
factur d as
 only can aim your
an strategies toward
onlin achieving it.
e ​ 1.4 Mission
seller ■​ Mission
. statements
​ 1.3 Vision should be very
■​ A good vision brief; a few
concisely, using sentences or a
very few short paragraph.
memorable ■​ A mission
words, outlines statement
what the owner indicates what
intends for the your venture
venture to be. does and why it
■​ It is what the exists.
owner aspires for ■​ It generally
his or her describes what
venture to the business
become in the does from the
future. time when it
■​ The best vision starts-up.
statements are ■​ It might briefly
written in a way describe the
that inspires the business
stakeholders strategy and
associated with philosophy.
the venture to ​ 1.5 Values
achieve great ■​ Values
things through it. statements
■​ It is only by describe the
knowing what it important values
will look like to that will guide
realize your everything the
vision that you business will do.
■​ They outline the six; one or two
personal will look
commitments incomplete and
members of the strange
organization ■​ Ensure that your
must make, and values are
what they should reflected
consider to be throughout the
■​ Values plan.
statements ■​ This
define how can
individuals be
associated with done
the venture in the
behave and busin
interact with ess
each other. plan
■​ They should help by
the reader referr
understand the ing to
type of culture the
and value
operatingenviro s
nment the owner when
intends to expla
develop for the ining
venture. how
■​ You should strive and
to list and why
briefly describe the
a reasonable busin
number of ess
values that are plans
important to you, to
perhaps five or imple
 ment plete
certai d
n ever
strate ythin
gies g
exce
Your vision, mission, and pt
values are all related. Your your
vision is the flag that you plant exec
at a point into the future that you utive
aim to achieve by implementing sum
your strategies. Your mission is mary.
what you will doat and following ■​ You
start-up. Your values provide the shoul
guideposts within which you will d do
operate as you strive to achieve this
your vision. so
your
○​ 1.6 Major Goals goal
■​ This is the s
second last accur
section of your ately
plan to write (or refle
re-write) and ct
finalize. the
■​ Write plan
or s you
rewrit descr
e this ibed
secti in
on your
when busin
you ess
have plan.
com
■​ This section lists (RU
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organizational ■​ Everything in
goals. your plan should
■​ Each goal should align perfectly
be: with the goals.
■​ Speci ■​ Be sure to
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urabl than means to
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on operations plan.
over ​ How will
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n t
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h h
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r t
c e
o x
s p
t a
s n
m s
u i
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n r
p e
l q
a u
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s e
t n
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f ?
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c h
t a
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r t
e r
d a
i n
n s
t p
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t r
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e a
f t
a i
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s o
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s ?
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u h
s a
t t
b z
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d i
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t constraint
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t your
o capacity to
m produce
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a product?
n ​ G
d i
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t ?
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a h
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l m
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, ​ What is the
c workflow
o plan for
n your
t operation?
r ​ T
a h
c i
t s
s w
c i
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m l
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q t
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n s
 t events have
o occurred and
f are expected to
i occur.
n ■​ Milestone
i events are
s represented by
h the answers to
e questions like
d the following.
p ​ When will
r you make
o the
d preparatio
u ns, such
c as
t registering
s the
​ What work business
will your nameand
company purchasing
do and equipment
what work , to start
will you the
outsource venture?
? ​ When will
​ 2.1 Operations you begin
Timeline operations
■​ It is often useful and make
to include a your first
timeline, in sales?
graphical or ​ When will
table form, you move
showing when your
milestone operations
 to a larger between your
facility? fixed capital
​ When will requirements
you offer a and operating
new capital
product (sometimes
line? called working
​ When will capital)
you hire requirements.
new key ​ 2.2.1 Fixed
employee Capital
s? Requirem
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you begin ■​ What
selling fixed
your asset
products s,
internatio inclu
nally? ding
​ 2.2 Start-up equi
■​ What is required pme
to start-up your nt
business and
including the mac
purchases and hiner
activities that y,
must occur must
before you make you
your first sale? purch
■​ When identifying ase
capital so
requirements for your
a start-up you ventu
should re
distinguish can
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its r
busin a
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l
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might
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start-
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budg
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showi
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the
mac
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equi
pme
nt,
furni
shin
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reno
vatio
ns,
and
other
 capit cing
al term
expe with
nditu the
resre lengt
quire h of
d time
prior the
to asset
oper will
ation be
s used
com by
menc the
ing. comp
■​ The any.
best ■​ F
way i
to x
finan e
ce d
fixed a
capit s
al s
requi e
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pting e
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finan l
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Start-Up
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■​ What
expe
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ar licen
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ation hire
sstart lawy
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secti pay
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de a thing
start- s
up requir
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showi e
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cash your
requi first
red sales
to .
recru ■​ The
it best
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reme debt,
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ly by a
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to loan
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short throu
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asset ■​ Consi
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ating a
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with provi
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​ 2.3 Risk Management
Strategies
■​ Include
descriptions of
the
organization’s
 risk exposure in to not
this section. offer
​ Keep your a
plan simple deliv
and ery
straightfor servi
ward. ce to
■​ Always include trans
descriptions of port
the planned your
strategies for produ
managing each cts to
of the risks your
identified. custo
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manageme yours
nt elf.
strategies ■​ Redu
follow cing
■​ Avoi – You
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risks by
by provi
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some takin
thing, g
like speci
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strate outso
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desig g
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to activit
impro ies
ve (trans
safet ferrin
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■​ Tran risk
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prene .
urs ■​ Acce
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transf (assu
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finan fleet
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to an physi
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a
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.
■​ In this or another
section, you
should describe
your control
processes. For
example, you
should describe
how you will
implement ■​ Consider using a
controls if your tool like the chart
employees will: r a table to
​ handle summarize the
cash risks you have
generated identified along
as part of with your
their work, assessment of
​ have their potential
access to consequences,
your possibility of
computer occurring, and
systems plans for dealing
(customer with them.
lists, ​ This table
customer will include
information the
, product following:
information risk
, financial exposure
information (flood, fire,
, etc.), theft), risk
​ do work consequen
out of your ces (lost or
view, destruction
​ sign for of
incoming property),
supplies or risk
inventory, potential
​ communica (low,
te directly moderate,
with high),
customers, mitigation
the media, (insurance,
and others.
 security ■​ How
cameras) will
​ 2.4 Operating you
Process sche
■​ This is an dule
important section your
of your plan empl
wherein you fully oyee
explain all of s?
your operating ■​ How
processes. will
■​ What you will you
need to describe mana
in this section ge
will depend upon your
the type of inven
business for tories
which you are ?
creating your ■​ etc
plan. ​ Service
​ Retail operation
operation ■​ How
■​ How will
will you
you bill
ensur out
e your
your empl
cash oyee
is time?
mana ■​ How
ged will
effect you
ively? sche
dule
 work ■​ When you use
on charts or tables,
your always refer to
contr them in the text
acts? of your plan so it
■​ etc is clear why they
​ Manufactu were included in
ring the plan.
operation ■​ It is also very
■​ How important to
you format your
will charts or table
manu correctly in your
factur plan.
e ■​ They
your shoul
produ d
ct gener
(proc ally
ess not
flow, exten
job d
shop, acros
etc.?) s
■​ How more
will than
you one
sourc page.
e If the
your chart
raw is so
mater large
ials? that it
■​ etc must
fall
 on facilities in this
two section
or ​ 2.6 Organizational
more Structure
page ■​ This section
s, be might be the best
certai place to indicate
n that what
the organizational
relev form your
ant business will
label take (sole
s and proprietorship,
titles partnership,
are corporation, or
inclu co-operative),
ded and why.
on all ■​ This section
the might include
page information on
s. an Advisory
​ 2.5 Facilities Board or a Board
■​ Detailed of Directors from
discussion on which the
how your facility company will
and the different seek advice or
parts of it will guidance or
look like and for direction.
what use or ■​ You will need to
purpose draw an
■​ You might organizational
include diagrams chart that
of the planned includes the
layouts for your different offices
or departments
 and the person , these
and their types of
corresponding statements
title do not add
much if any
3. Human Resources Plan value to a
​ This part of the plan.
business plan is ■​ Adding the
very important reasons
because some why they
business plan want to
readersplace a achieve
great deal of these
weight on who things will
the improve
entrepreneurs the plan,
are and with but it is
whom they are only when
surrounding writers
themselves. detail how
​ Business plan they will
writers often say achieve
what they want these
to achieve – things that
often things like they will
the best work advance
environment, an their
appealing credibility
organizational and
culture, and a provide
diversified information
workplace. that
■​ By readers will
themselves value.
​ The following are nt
some key strategy?
questions ■​ What
addressed in processes
human will you
resources apply to
plans. hire the
■​ How do employees
you you
describe require?
your ■​ What is
desired your
corporate leadership
culture? strategy
■​ What are and why
the key have you
positions chosen this
within your approach?
organizatio ■​ What
n? performan
■​ How many ce
employees appraisal
will you and
have? employee
■​ What developm
characteri ent
stics methods
define your will you
desired use?
employees ■​ What is
? your
■​ What is organizati
your onal
recruitme structure
and why is
 this the described
best way an
for your organizati
company onal
to be chart?
organized? ■​ What will
■​ How will be included
you pay in
each partnershi
employee p
(wage, agreement
salary, s (can
commissio include a
n, etc.)? sample
■​ How much one in an
will you appendix
pay each to the
employee? business
■​ What are plan if this
your would add
payroll value)
costs, ■​ What types
including of
benefits? insurance
■​ What work systems
will be will you
outsource have? (For
d and what example,
work will will you
be carry key
completed person
in-house? insurance
■​ Have you coverage?)
displayed
and
​ 3.1 Leadership and or search
management firms
Strategies ■​ travel and
​ What is your accommo
leadership dations for
philosophy? potential
​ Why is it the employees
most appropriate to come for
leadership interviews
approach for ■​ travel and
this venture? accommo
​ 3.2 Recruitment and dations for
Retention Strategies interviewer
​ Explain how s
many ■​ facility,
employees are food, lost
required at what time, and
times. other
​ Estimate the interviewin
time required to g costs
recruit needed ■​ relocation
employees. allowance
​ Estimate all s for those
recruitment hired
costs including including
the following: flights,
■​ employme moving
nt companies,
advertise housing
ments allowances
■​ contracts , spousal
with an employme
employme nt
nt agency assistance,
etc.
​ You might become
include a sick and
schedule in this cannot
section showing come into
the costs of work for a
initial day
recruitment. (particularl
■​ This y if they
schedule operate out
must then of a mall
link directly where they
with your are
start-up required to
expense be open
schedules. every day).
​ Note that many ​ 3.3 Training
ventures start ​ What training is
out without the required
need to hire and because of
retain staff as the existing rules
entrepreneur, and regulations?
along with a ​ How will you
partner or a ensure your
spouse, might employees are
intend to run the as capable as
business on their required?
own. ​ In which of the
■​ In a case following areas
like this will you provide
they should training for your
consider employees (note
how to deal that you may be
with required by law
situations to provide some
like if they of the following
 types of which should be
training)? noted in this
■​ Health and section (and also
safety legal
(legislation, requirements for
first aid, other issues that
etc.) may be included
■​ Initial in other parts of
workplace the plan).
orientation ​ 3.6 Compensation
■​ Manageme ​ Always
nt completely
■​ Financial justify your
systems planned
■​ Sales employee
■​ Contracts compensation
■​ Product methods and
features amounts.
■​ Others ​ Always include
​ 3.4 Performance all components
Appraisals of compensation
​ What type of ​ How will you
performance ensure both
appraisal internal and
systems will you external equity in
use? your pay
​ How will you systems?
manage your ​ Describe any
performance incentive-based
appraisal pay or profit
systems? sharing systems
​ 3.5 Health and Safety planned.
​ There may be ​ You might
legal include a
requirements schedule here
 that shows the Parts of the Business
financial
Plan (Part 2)
implications of
your (Excerpts from "Business Plan
compensation Development Guide"
strategy and [Link]
supports the ndevelopmentguide/chapter/chapter-1-d
eveloping-a-business-plan/ (Links to an
cash flow and
external site.)
income
statements 4. Marketing Plan
​ 3.7 Key Personnel
■​ A formal
■​ You should
usually marketing plan
include can be
brief comprised of the
biographie following four
s of the major sections.
■​ Following the
key
organizati descriptions of
onal the three major
people. T sections of a
■​ They
marketing plan,
might study the list of
be key questions
place that must be
d in answered within
this a marketing plan
secti in a business
on or plan.
in an ​ 4.1 Marketing
appe Analysis
■​ The market
ndix
analysis
contains
customer
 profiles, approach
constructed was
through primary acceptable
and secondary and
research, for indicate
each market what
targeted. research
■​ It also contains will be
detailed done and
information on by when
the major and by
product whom.
benefits you will ■​ Include a
deliver to the complete
markets description
targeted. of the
■​ Describe secondary
the research
methodolo conducted
gy used and the
and the conclusion
relevant s reached.
results ​ 4.2 Competitive
from the Analysis
primary ■​ The competition
market section fully
research describes the
you nature of your
completed. competitors.
■​ If you did ■​ This section
not do any might be part of
primary your market
research, analysis if it
justify why makes more
this
 sense for you to competitor
include it there. analysis in which
■​ describe all you can develop
your direct a set of factors to
competito rate on a scale to
rs establish a
■​ describe all competitive
your score against
indirect which to
competito compare your
rs company to your
■​ You should competitors
consider ■​ This will
including a require you
positioning (or to prepare
perceptual) map a table that
to show where shows
your product will scores of
be positioned your
relative to business or
competitors’ product
products. relative to
■​ This part competitor
may use a s' on
diagram different
that shows factors
the position ​ 4.3 Organizational
of your Analysis
business or ■​ An
product organizational
relative to analysis primarily
competitor uses the
s' firm-level
■​ Another tool you analysis (they
can use is a are essentially
the same thing), business
which is one of plan to
the four levels of provide the
analysis needed
(societal-level, big-picture
industry-level, context
market-level, and early, an
firm-level) used organizatio
to help make nal plan is
decisions and often
developstrategi placed
es. within the
■​ This marketing
section can plan part
use the (or
firm-level sometimes
analysis to in the
provide operations
needed plan
context in section).
preparation ■​ A common
for approach to
presenting analyzing a new
the venture is to
marketing apply a SWOT
strategy. analysis, but
■​ While the always ensure
societal-le this analysis
vel and results in more
industry-le than a simple list
vel of internal
analyses strengths and
are often weaknesses
placed and external
early in the
opportunities ■​ It evaluates
and threats. each of the
■​ A SWOT identified
analysis threats
should along with
always each of the
prove to weaknesse
the reader s and then
that there each of the
are strengths.
organizati ■​ It does the
onal same with
strategies each of the
in place to identified
address opportunit
each of the ies.
weaknesse ■​ In this way,
s and strategies
threats are
identified developed
and to by
leverage considering
each of the pairs of
strengths factors.
and ​ 4.4 Marketing
opportuniti Strategy
es ■​ The marketing
identified. strategy section
■​ A TOWS is very important
Matrix is a as this covers all
tool aspects of the
available to marketing mix
help with including the
this. promotional
decisions you
have made, products
product and your
decisions, plans for
distribution further
decisions product
related to how developme
you will deliver nt.
your product to ■​ Refer to
the markets the list of
targeted, and key
pricing questions
decisions. that must
■​ This be
section answered
describes within a
the marketing
strategic planfor
choices insights
you are into what
making your
relevant to product
your strategies
product or should
service. address.
■​ These ■​ 4.4.1
strategies Product/S
might ervice
describe Strategy
elements ​ This
like your secti
planned on
quality descr
levelsrelati ibes
ve to the
competing strat
 egic cts
choi and
ces your
you plans
are for
maki furthe
ng r
relev produ
ant to ct
your devel
produ opme
ct or nt.
servi ​ Refer
ce. to the
​ Thes list of
e key
strate ques
gies tions
might that
descr must
ibe be
elem answ
ents ered
like within
your a
plann mark
ed eting
quali plan
ty for
level insig
srelat hts
ive to into
comp what
eting your
produ prod
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strat servi
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shoul ​ Thes
d e
addre strate
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■​ 4.4.2 shoul
Pricing d
Strategy usual
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secti built
on upon
descr the
ibes norm
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choi strat
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you comp
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maki use
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ant to plus
the prici
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s you pene
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charg n
e for prici
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prod prem
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skim within
ming a
, or mark
any eting
of a plan
numb for
er of insig
other hts
prici into
ng what
strat your
egies prici
you ng
shoul strat
d egies
resea shoul
rch d
and addre
consi ss.
der ■​ 4.4.3
for Distributio
your n Strategy
busin ​ This
ess. secti
​ Refer on
to the descr
list of ibes
key the
ques strat
tions egic
that choi
must ces
be you
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maki retail
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relev sales
ant to ,
how onlin
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distri butio
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consi strate
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strat .
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comp to the
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sales must
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answ make
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within simpl
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eting that
plan cust
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ased ping
busin expe
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writer the
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have you
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locat key
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■​ 4.4.5 tions
Promotion that
Strategy must
​ This be
secti answ
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descr within
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strat eting
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choi for
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ng your
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shoul Philip
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questions that must ​ It is,
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marketing plans ver,
follow. usefu
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customers defin
going to be? e
■​ Define your your
target target
market in mark
terms of et as
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sharing unive
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characteri stude
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ple, it the
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mean of 18
ingful and
to 25 …
indic or as
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matio market
n aligns
techn completely
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stude marketing
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Philip (including
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or as channels,
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pine exam
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■​ There are they
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implicatio patro
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out advantage?
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rs in a way to claim
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forecasts service as
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value only
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n? judge of
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clearly success in
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answers to customers
these .
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in your is possible
business some of
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order to competito
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needed complace
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your pose to
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rs ■​ If you
providean intend to
inferior create
service to new
that which customers
you will be , how will
able to you
provide. convince
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into the market, reallocate
must you (a) their
attract your dollars
customers toward
away from the your
suppliers they product or
currently buy service?
from, or will you ​ Prov
be (b) creating e that
new customers you
for your have
product or antic
service? ipate
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attracting resp
customers onse
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a l
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o 5. Financial Plan
s ■​ It is nearly
t certain you will
a need to make
l monthly cash
w flow projections
a for five years
y from business
s inception.
m ■​ This is nearly the
u only way to
s clearly estimate
t your working
d capital needs
o and, specifically,
a important things
n like the times
a when you will
l need to draw on
y or can pay
s down your
i operating loans
s and the months
a when you will
t
need to take out projection
longer-term s will you
loans with which be able to
to purchase your answer
fixed assets. these
■​ Without a questions.
tool like ■​ You also
this, you need this
will be information
severely to
handicapp determine
ed when things like
talking with any
bankers needed
about your changes
expected to your
needs. required
■​ They will loan
want to payments
know how and when
large of a you can
line of take owner
credit you draws or
will need pay
and when dividends.
you ■​ Your
anticipate projected
needing to cash flows
borrow enable you
longer-ter to develop
m money. your
■​ It is only projected
through incomesta
doing cash tements
flow and
 balance your projected
sheets. financial
​ 5.1 Overview statements.
■​ You should ​ 5.6 Projected
introduce the Financial Ratios and
financial plan Industry Standard
section of your Ratios
business plan ■​ You should find
with a relevant
comprehensive industry
overview that average ratios
describes how from different
you developed sources even
this section. online .
​ 5.2 Income ■​ Always
Statements accompany any
(Projected 5 Years) ratios you
​ 5.3 Balance Sheets provide with an
(Projected 5 Years) analysis and
​ 5.4 Cash Flow interpretation of
Statements what they mean.
(Projected 5 Years) ■​ It is never
​ 5.5 Financial sufficient
Analysis (Investment to simply
Analysis) calculate
■​ The investment and list the
analysis part of relevant
your business ratios.
plan is the ■​ You must
section in which also
you will provide a provide
comprehensive valid
assessment of interpretat
your business, ions of
mainly based on what they
 indicate performance, if
and the business has
disclose. been running for
■​ This will a few years, and
help you (3) norms that
tell the you can derive
story about from several
why your sources.
business ​ 5.7 Break-even
concept is Analysis
viable. ■​ Break-even
■​ It will also analysis can be
help you done:
understand ■​ a)
how Break-Eve
potential n Point =
investors FC / (P –
will VC)
interpret ■​ w
your h
financial e
informatio r
n when e
they F
conduct C
their own =
financial f
analyses. i
■​ When possible, x
ratios should be e
(1) compared d
with available c
industry o
average ratios, s
(2) past t
 s s into a
, new
P spreadshe
= et and
p manipulatin
r g them so
i that they
c become
e month-by-
, month
a income
n statement
d s,
V ■​ c) by
C developing
= a chart
v showing
a the total
r expenses
i (fixed and
a variable)
b for running
l the
e business at
c ever
o increasing
s sales
t volumes
■​ b) ) by alongside
copying the
your correspon
month-by- ding sales
month figures
cash flow and then
statement flagging
 the sales your business
volume at plan.
which total ■​ You can do
overall this by
sales manipulati
match ng some of
total the factors
overall in your
expenses spreadshe
■​ Break-even is ets to see
normally what the
expressed in implication
terms of when s would be.
the break-even ■​ For
point is hit example, if
(year, month), your
how many units business
of sales plan
represent shows the
break-even, and venture will
what peso value be
of sales profitable
represents the after two
break-even years in
point. business,
​ 5.8 Critical Success how would
Factors this
■​ You should change if
identify the sales were
factors that, if five
they were to percent
change, would lower than
most affect the projected?
plans you ■​ One common
presented in approach is to
 include three ■​ You need to
sets of financial include
projections; references in
pessimistic, your business
most likely, and plan to establish
optimistic. and build its
■​ Critical success credibility.
factor analysis ■​ No business plan
is normally a writer will be
description of the considered by a
factors that reader to be an
most impact the expert in
business based everything in
on financial their plan.
data. ■​ Consequently,
■​ It is more you need to
than a prove that the
written information you
description include in your
describing plan is valid and
the factors reliable.
that impact ■​ For
the example,
venture’s when you
operations indicate
in what
significant inflationary
ways, rates you
because it applied to
is founded some of
in financial your cost
analysis. categories
, you need
6. References to
reference a
 valid ■​ While it is often
source like just as easy to
the simply include all
Bangko references in the
Sentral ng reference list, it
Pilipinas might be
that acceptable in
projects some business
future plans to exclude
inflation some
rates. references, like
■​ Every reference supplier
in this section catalogues,
must have at from the
least one reference list and
corresponding instead include
in-text brief
reference in explanationsacc
your plan. ompanied by
■​ All in-text website links
references when citing
must have where you found
a the costs for
correspond some of the
ing entry items listed in
on the your business
reference plan.
list in this ■​ Also, your
section. reference list
■​ Use a should only
recognized include entries
referencing that the reader
method, like can look up by
APA. using your
citation, so you
do not include
items like
quotations from
contractors in a
reference list.