JUANITA C. BONDA
JMC BUSINESS SERVICES CENTER
Creating A New Business
A. What is Business?
B. Types of Business
C. Values of Business
D. Purpose and Characteristics of Business
E. Essentials of a Business System
F. Forms of Business Organization
G. Identifying the Business
H. Planning the Business
What is Business?
• Is an undertaking or venture for the
primary purpose of making a gain or
• Includes any lawful activity carried on
continuously, which involves buying &
selling, manufacturing and rendering
of services for money.
Types of Business
1. Commerce & Trade – it concerns with the transfer or
exchange of goods from producers to consumers or
between nations and individuals. It is classified into:
a. Domestic or Local trade – refers to purchase and sale of
commodities of goods within the country.
b. International trade – known as export and import trade. It is the
purchase and sell of goods or services between countries.
2. Industry –concern with the production of goods that are
used either by the consumers known as “ consumers
goods” or other industries for production of other goods
known as “ producers goods”
Types of Business
3. Investment of finance – it concerns with the investing or
lending money and collecting the same with interest.
4. Service – it deals with the rendering of services for
a. Recreation Service – include motion pictures production and
distribution, theaters for drama and stage presentation, television
and the like.
b. Personal service – includes the likes of restaurants, hotels,
lodging housing and others.
Values & Purpose of Business
• Business supply good and services
• Business creates jobs
• Business pays taxes
• Business are buyers
• Business attract other businesses
PURPOSE & CHARACTERISTICS
• Social Recognition
Essentials of a Business System
To be financially successful, the business must
possess the following:
2. Product or service on Demand
3. Adequate capital
4. Competent Management
5. Well-defined objective
6. A strategic location
7. A loyal and motivated workforce
8. An adequate accounting system
9. Capable financial control
10. Proper form of Business Organization
Forms of Business Organizations
• Single Proprietorship – business organization owned
and managed by only one person or single family
• Partnership – business organization owned &
managed by two or more persons who contribute
money, property or service to a common fund as
• Corporation – business organization whose common
fund or capital is divided into shares of stocks. The
owners are called corporators or stockholders.
• Cooperative – a business organization that is owned
and operated by its members who use to and buy its
goods or services, the profit of which are distributed to
the members in proportion to the amount of goods or
services they use or buy.
Identifying the Business
I. Generating Idea for Business
a. Examine existing goods and services.
b. Examine present and future need
c. Examine how needs are being satisfied
d. Examine available materials or things around you.
e. Read magazines, news articles, and other
publications on new products and techniques
or new advances in technology.
II. Selecting the Right Idea
Planning the Business
Planning- is the process of looking ahead and
anticipating events. It leads into a pre-
determined actions that will put into effect to
achieve a desired objective.
Business planning requires all the other
management skills such as marketing, financial
management, managing people and understand
the legal aspects of business.
Planning significantly increases your changing of
success by focusing on five areas sometimes
overlooked by most entrepreneurs.
Major Elements of a Business Plan
A 1 to 3 page overview of the total business plan It
highlights their significant points and ideally, creates enough
excitement to motivate the reader to read on.
II. Business Description
Explains the type of business and give its history if it
already exist. Tells whether it is manufacturing, retail, service
and other type of business.
III. Product and Service Plan
Describes the product and or service & points out any
unique features. Explains why people will buy the product or
IV. Marketing Plan
Shows who will be your customers and what type of
competition you will face.
Major Elements of a Business Plan
V. Management Plan
Identifies “key players”, the active investor,
management team and directors. Cites
the experience they possess.
VI. Operating Plan
Explain the type of manufacturing or operating
system you will use. Describe the facilities, labor, raw
materials and processing requirements.
VII. Financial Plan
Specifies financial plan needs and contemplated
sources of financing. Presents projections of revenues,
costs, and profits.
VIII. Legal Plan
Shows the proposed type of legal organization-
proprietorship, partnership or corporation. Points out
special, relevant legal considerations.
Steps in Preparing a Business Plan
I. Study your products or services and
III. Select a good location for your business
V. Prepare a financial plan
TO GOD BE THE GLORY
“AND WE KNOW THAT
ALL THINGS WORK TOGETHER
FOR THE GOOD TO THEM
WHO LOVE GOD;
TO THEM WHO ARE CALLED
ACCORDING TO HIS PURPOSE”.
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