IS SCHOOL OF TECHNOLOGY AND SKILLS DEVELOPMENT, INC.

Entrepreneurship
Module 11
Business
Implementation

Prepared by: Ariel M. Morales

 This module was designed and written with you in mind. It is here to help you
to explore business implementation for Entrepreneurship as a career. The scope of
this module permits it to be used in many different learning situations.

After going through this module, you are expected to:

1. Implement the business plan.

Modul
e Business Implementation

11
Before we talk about business implementation, let’s have a review regarding
the personal purpose of entrepreneur is his or her personal mission.

Remember the entrepreneur must be very clear about the purpose in

establishing the enterprise. Whether it is for generating profits or feeding the family,
making a difference in the industry or actualizing the self, the purpose must be
compelling enough to motivate the entrepreneur.

The enterprise must state its mission statement clearly for:

 The sake of the customers being wooed;

 The investors who need to know what they are getting into;
 The financiers evaluating the enterprise; and
 The government functionaries who must regulate the activities of industries
and businesses.
Now that you know these mission statement, we will proceed now to our
lesson Business Implementation. But wait, why do we need to study
Business Implementation?

Case Study
Read and Understand the Jollibee Business Concept and answer the given
questions below.

When Jollibee decided to challenge the giant McDonald’s in the market, it

brought the Filipino taste to hamburgers. For that matter, it introduced a lot of
Filipino dishes not traditionally sold in hamburger joints. Jollibee observed in their
market research that Filipino consumers smelled their burgers before eating them.
The logic is obvious: the nose can smell a thousand aromas while the tongue can
only distinguish four tastes (sweet, sour, salty, and bitter). Jollibee knew that good
taste is a function of good smell. Their tag line, “ Langhap sarap” that roughly
translates to “You can savor its good taste from its great aroma,” says it all. Jollibee
also came up with a child-friendly name and an endearing mascot to accompany the
name. Strategically, Jollibee decided to locate two or three outlets to “surround”
McDonalds. The rest is history.
Activity :
Question:

1. What are the differentiated business concepts that Jollibee won the hearts,
minds, and wallets of Filipino Consumers? Do you think these business
concepts are effective in outgunning the giant McDonalds? Explain your
answer in 50 words.
_

Here is the introduction to business implementation that you may explore if

you pursue college education and have Entrepreneurship degree:

Introduction to Business Implementation

A Very Good Business Plan

The next step for the entrepreneur is to have a very good business plan. It is
a wise thing to do in order to chart the course of the business properly and to focus
the efforts of the entrepreneur.

The purposes of the business plan are:

1. Entice partners, investors, and bankers to fund a business venture.

2. Communicate what the enterprise is all about, what market it wants to serve.
3. Show what financial returns it could muster.

The business plan should contain important information about the following:

 The business itself;

 The organizers;
 The management and technical people;
  The financial structure;
 Its market potential;
 Its target market;
 Its projected sales, expenses, and profits; and
 Its probable risks.

The business plan should begin with business concept and the vision for the
enterprise in the next three to five years.
It should proceed to an enumeration of business objectives, key result areas, and
performance indicator. An overall enterprise strategy should then be articulated to
show how the performance could be attained.
Next, the business plan should contain an executive summary of the following:

1. The organizers and the key people behind the nosiness and why these people
have the resources, talents, skills, and technology to achieve success;
2. The market being targeted and why there is enough market potential to
justify the business;
3. How the business will be operated and organized, including all outsourcing,
subcontracting, franchising, and licensing agreements;
4. The products or services to be offered and why they are right for the market;
5. The investment capital required for the business and what exactly it would be
used for;
6. The technology, the technical expertise, the equipment, and material
suppliers to be utilized;
7. The capital structure (short and long term debt, stockholders’ equity) of the
business;
8. The operating budget, financial projections (income statement, balance sheet,
cash flow), and return on investment prospects; and
9. The risks in the business and the contingency measures to counterpart them.

Organizing and Structuring the Enterprise

The Business Plan must be able to estimate the capital required by the
enterprise. The capital required would be dictated by the investment in the assets of
the enterprise. These assets are composed of the following:
1. The current assets, which are short-lived assets. They are composed of
cash, inventory, accounts receivables, and other current assets.
2. The long-lived or fixed assets. They are composed of property, plant, and
equipment.
3. The other assets. They are composed of organizational and pre-operating
expenses.
Interest rate, therefore, is the obvious choice of the manager when asked
to make a decision.

The assets of the enterprise are financed by its liabilities. These

liabilities are composed of:

 Current liabilities such as suppliers’ credit and other short-term credit;

 Long term debt; and
  Owner’s equity

 Sole proprietorship
The simplest and easiest enterprise to organize. The owner or the
entrepreneur has sole control over the enterprise. He or she reaps all the
profits and, also, all the losses. But he or she will also incur all the risk.

The following are clearances that must be obtained to secure a mayor’s permit or
municipal license before they can operate in a locality.

 Barangay clearance
 Fire safety clearance
 Certificate of electrical inspection
 Certificate of occupancy
 Department of Trade and Industry (DTI) certificate
 Lease contract if space is leased
 Locational clearance

There may be additional requirements depending on the type of business and the
ordinances issued by the concerned local government.

 Partnership
If two or more persons bind themselves into a contract to contribute money,
property, and expertise in a common venture with the intention of dividing
the profits among themselves, then they would have entered into a
partnership.

 General partnership
Is composed of partners who are liable individually and collectively to all
those who have claims against them.

 A limited partnership
Consist of partners who have limited liabilities while others in the
partnership have unlimited liabilities. A limited partner is not personally
liable for all the obligations of the partnership beyond his or her prorated
capital contribution to the partnership.

The partnership should obtain all the required government clearances,

permits, and licenses. It should get:
 A bank certificate of deposit on the money contributions of the partners; and
 The approval for its partnership name form the Department of Trade and
Industry.

 Corporation
The third form of business organization. Like the partnership, the
corporation also has a separate legal personality quite distinct from the
investors who contributed money to the enterprise.
Four Types of Corporation

1. Stock Corporation. Issues capital stocks divided into shares (or

 proportions of the total capital). The corporation is authorized to raise capital
that has a corresponding number of shares.
2. Non-Stock Non-Profit Corporation. Is organized to carry out a purpose
or purposes other than generating profits for investors. All the surpluses (or
profit equivalents) generated by the corporation are not distributed to the
funders in the form of dividends. Rather, they are plowed back into the
corporation or the foundation to contribute further to the attainment of its
mission.
3. Close Corporation. Has articles of incorporation that limit the ownership
of issued stocks to at most 20 persons. There are strict restrictions on the
transfer of stocks. The stocks cannot be listed in any stock exchange nor can
any public offering of shares be made.
4. Corporation Sole. It is a special form of corporation allowed by law, usually
associated with the clergy. The Corporation Sole is a trusteeship that is set up
f o r the purpose of administering and managing the affairs, property, and
temporalities of a church or group of clergy.

Assessment

1. IDENTIFY THE FOLLOWING:

1. Is organized to carry out a purpose or purposes other than generating profits for
investors.
2. It is a special form of corporation allowed by law, usually associated with the clergy
3. The third form of business organization. Like the partnership, the corporation also
has a separate legal personality quite distinct from the investors who contributed
money to the enterprise.
4. Consist of partners who have limited liabilities while others in the partnership
have unlimited liabilities.
5. Is composed of partners who are liable individually and collectively to all those
who have claims against them.
6. The simplest and easiest enterprise to organize. The owner or the entrepreneur
has sole control over the enterprise.
7. Has articles of incorporation that limit the ownership of issued stocks to at most
20 persons.

8. Issues capital stocks divided into shares (or proportions of the total capital). The
corporation is authorized to raise capital that has a corresponding number of
shares.
9. If two or more persons bind themselves into a contract to contribute money,
property, and expertise in a common venture with the intention of dividing the
profits among themselves
10. A document setting out a business’s future objectives and strategies for achieving
them
2. Enumerate the following clearances that must be obtained to secure
mayor’s permit before a business can operate in locality