MGT104a- Master setup

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MGT104a- Master setup

  1. 1. Master Set-upThe last step to start your own business
  2. 2. Perks of Running your own Business• People work FOR YOU• Government works FOR YOU• Banks works FOR YOU
  3. 3. People work for YOU!• When you are in business, people work for you rather than the other way around.• The key is to treat and pay them well because they will be your extended arms.• Trust is also important.
  4. 4. The Government works for YOU!• A fair understanding of municipal/local government rules can help you take advantage of benefits and incentives.• Certain expenses incurred while operating your business are legally deductible from your business income.
  5. 5. Banks works for YOU!• Extend credit lines/ standby credit to legitimate businesses.• Pre-approved credit cards used to pay for consumable business purchases.
  6. 6. Why businesses fail?• Its easy to start a business however, it is hard to make it successful.• Reasons for business failure: – Not willing to do a plan – Not ready to grow up (legally) – Not ready to draw out first blood (Effort and own money) – Not able to hire first employee
  7. 7. MASTER SET-UP
  8. 8. Master Set-up• To master set up entails doing steps A-G: Actual Product Business Model/Set-up Customer Count Do it Right, Do it Legal Equipment Employee, Extras Funding the Business Go Master Set-up
  9. 9. Master Set-upACTUAL PRODUCT
  10. 10. Actual Product• Where should an actual product compete? – It should compete first in the customers mind. – Customers should see, smell feel and hold the product before one decides if the product meets his/her needs.
  11. 11. Actual Product Helpful hint: MIND>HEART>WALLET People buy products because of 2 reasons: 1. Solutions to their needs/problems 2. Good/Happy FeelingSatifaction not only on functional value butalso emotional needs
  12. 12. Actual ProductTo analyze your product if it can satisfy bothfunctional and emotional needs, they shoulddo: “PROBING”
  13. 13. Actual ProducctPROBING: using the basic questions of HO W HAT HEN HERE and; how?
  14. 14. Actual Product• Probing can help identify what elements or qualities in your product can satisfy both the functional and emotional needs of your consumers.• A product can be made different by how it is able to satisfy or provoke different emotions
  15. 15. Master Set-upBUSINESS MODEL/SET-UP
  16. 16. Business Model/ Set-upManufacturer: Manufacture/industrial orcommercial productsProducer: Growing agricultural crops orlivestockWarehouse/Distributor: Involved with thestorage or transfer of products frommanufacturer to point of sale.
  17. 17. Business Model/ Set-upWholesaler/Traders: Involved in the bulksales of products as agents ofmanufacturers/ producersRetailer: Selling through its own shopswhere end users buy products.Exporter/Importer: Involved with thebuying/selling of products to/from abroad
  18. 18. Business Model/ Set-up IMPORTER Distributing/ Wholesaler/Producer Warehouse Retailer Inventory Trader SUPPORT SERVICES AFTER-SALES SERVICES EXPORTER
  19. 19. Business Model/Set-up Model combinations DrawbacksCheap and Quick Not necessarily Good: look at hidden costsCheap and Good Not necessarily Quick: may take time to grow. Time and patience is needed hereGood and Quick This is not necessarily cheap. Needs high levels of capital investment to make this work.
  20. 20. Business Model/Set-upA choice of a sustainable business model isdependent on: – Time/Effort – Capital (Money) – Risk AppetiteTip: once should be able to sleep even ifyou lose everything and still have thepassion to fight or start again.
  21. 21. Business Model/Set-upPossible business formats:• Small own name/brand of kiosk/store format• Small franchised kiosk/store format• Start with family business and extend it by using additional products• Family business and expand to other branches
  22. 22. Business Model/Set-upPossible business formats:• Tie up into existing businesses that has synergy with your product.• Acquire an existing business that has a similar products and adopt the product into its category.
  23. 23. Master Set-upCUSTOMER COUNT
  24. 24. Customer CountMARKET= CUSTOMERS• Macro scanning can be done but you should not spend too much time on it because the window of opportunity is small.
  25. 25. Customer Count1-2-3 steps in counting customers: – Determine the market profile (Demographic) – Identify Location (Geographic) – Look for the Applicable (Customer) Generators
  26. 26. Customer CountCount by asking others: – Who has been in there – Who are currently there – Who are in a position to be there
  27. 27. Master Set-upDO IT RIGHT- DO IT LEGAL
  28. 28. Do it Right- Do it LegalWhy do it legal? YOUR BUSINESS IS YOUR BABY!In doing business, we do not want ourbusiness set-up to be illegitimate!“BAWAL ANG KABIT” –SkyCable
  29. 29. Do it Right- Do it Legal• Choosing the right name for the product is the most important business setup decision.
  30. 30. Do it Right- Do it LegalBasic rules on selecting a name:• Short and simple• Easy to read and spell• Easy to pronounce• Suggestive Product Benefits• Something Unique• Desirable image
  31. 31. Do it Right- Do it LegalBasic rules on selecting a name:• Short and simple• Easy to read and spell• Easy to pronounce• Suggestive Product Benefits• Something Unique• Desirable image
  32. 32. Do it Right- Do it LegalBasic rules on selecting a name:• Choose at least three names to represent your business.
  33. 33. Do it Right- Do it Legal• In the Philippines there are 3 types of business establishments: – Single Proprietorship – Partnership and; – Corporation
  34. 34. Do it Right- Do it Legal• There are four (4) agencies that one has to deal with to make their business legal: – Department of Trade and Industry – Barangay government – Local Government Units – Bureau of Internal Revenue
  35. 35. Single Proprietorship• Simplest business form under which one can operate a business.• Refers to a person who owns the business and is personally responsible for its debts
  36. 36. Single Proprietorship• Legally, the business has no separate existence from its owner.• Income and losses are taxed on the individuals personal income tax return.
  37. 37. Single Proprietorship ADVANTAGES DISADVANTAGESOwners can establish a sole Owners are subject to unlimitedproprietorship instantly, easily and personal liability for the debts,inexpensively. losses and liabilities of the business.Sole proprietorships carry little, ifany, ongoing formalities. Owners cannot raise capital by selling an interest in the business.A sole proprietor need not payunemployment tax on himself or Sole proprietorships rarely surviveherself the death or incapacity of their owners and so do not retain value.Owners may freely mix business orpersonal assets.
  38. 38. Partnership• A legal form of business operation between two or more individuals who share management and profits.• Come in two varieties: general partnerships and limited partnerships.
  39. 39. Partnership• General partnership: the partners manage the company and assume responsibility for the partnerships debts and other obligations.• Limited partnership has both general and limited partners. The general partners own and operate the business and assume liability for the partnership, while the limited partners serve as investors only.
  40. 40. Corporations• Business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors.• Has all the legal rights of an individual, except for the right to vote and certain other limitations.
  41. 41. Corporations• Incorporate your business by filing articles of incorporation• Elect officers such as a president, secretary and treasurer to conduct the day-to-day affairs of the corporate business.
  42. 42. Corporations• Corporations can limit the liability of their shareholders.
  43. 43. Master Set-upEQUIPMENT, EMPLOYEE,EXTRAS
  44. 44. Equipment, Employee, Extras I-P-O Input, Processor, Output
  45. 45. Equipment, Employee, Extras• Inputs: Money, Materials, Man (woman)• Processor: Machine, Methods, Man (woman)• Output: Goods and/ Services
  46. 46. Equipment, Employee, ExtrasFramework of IPOStep 1: Analyze customer needs and findout how these should be translated into thedesired output product.Step 2: INPUT: find out the raw materialsthat match or contribute to the specificationsneeded in the Output.
  47. 47. Equipment, Employee, ExtrasFramework of IPOStep 3: PROCESSOR determine thefollowing elements which lie at the heart ofthe framework and convert input to output. – Process: internment, batch, continuous – Equipment: General, Purpose, – Manpower: Operator and Maintenance – Technology: Established or Innovation
  48. 48. Equipment, Employee, Extras 2 3 1 INPUT PROCESSOR OUTPUTRaw Materials Technology Product Specifications ofSpecifications Finished GoodsProcessed or raw Equipment Delivery Time (To Customer)Quantity Production Process Quantity Environmental Ambiance
  49. 49. Master Set-UpFUNDING/FINANCING MYBUSINESS
  50. 50. Funding/Financing my Business• The reason why many people with good business ideas cant go into business is because of one thing: LACK OF MONEY
  51. 51. Funding/Financing my Business• Often times people fall under several categories of having “no money” – No Money – Not Enough Money – Just Enough Money
  52. 52. Funding/Financing my Business• If you have no money you can use: – Laway – Ikot – Pawis
  53. 53. Funding/Financing my Business• If you have not enough money you can use: – The Make or Buy Technique. – Beg, Borrow then Buy – When buying: • Lease to buy • Buy Deferred • Buy Instalment • Buy at Discount
  54. 54. Funding/Financing my Business• If you have enough money you can: • OPM (Other People’s Money) – This is only true if your product or market is already proven. – Normally first likely source of income is yourself. dependent on: » Cash on Hand » Savings » Assets » Retirement Funds.
  55. 55. Funding/Financing my Business• If you have enough money you can: • OPM (Other People’s Money) – Other sources of OPM: » Parents/ Close friends » Local Cooperative » Microfinance institutions » Loans from the government » Loan programs from government banks » Quasi government corporations
  56. 56. Funding/Financing my Business “ Put little money where your mouth/mind is.”
  57. 57. Final Words to start your own business:• INCOME-SAVINGS=Expenses• Setting up a business is not an overnight decision• TIME, TALENT, TREASURE: the real secret to a successful start up is the combination of these three things.
  58. 58. Thank you!

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