Agribusiness Setup

1. Business
Model Setup
Dr. Edward N. Divinaflor

2. Which business model
can I use for my product?
Some are unable to start their dream
business because they are busy with
school, work or house chores. Some
hesitate to start the business simply
because they do not know how, and are
afraid to risk what limited capital they
have.

3. Various Business Model
Manufacturer- involved in the manufacturing of industrial or
commercial products like food, clothing, metals, chemicals, etc.
Producer- involved in the growing of agricultural crops, livestock
like rice, corn, vegetable, fruits, cattle, or pigs.
Warehouse/Distributor- involved in the storage or transfer of
products from manufacturer/producer to point of sale

4. Various Business Model
Wholesaler/Trader- involved in the bulk sales of products as
agents of manufacturers/producers; they repackage products
into smaller units which they sell to retailers.
Retailer- selling through its own shops where end users or
consumers buy the products.
Exporter/Importer- involved in the buying/transporting/selling
of products to/from abroad.

5. Producer
Manufacturer
Distributor
Wholesaler/Trader
Retailer
IMPORTER
EXPORTER

6. Can I do a Business
Set-up that is Cheap,
Quick and Good?
Most business set-ups are already
available and accessible for you
within the family, friends, franchisor,
or a competitor. All you have to do is
to look around, observe, ask then
JUST DO IT.

7. 1st Combination: A business set-up that is
Cheap and Good
There is always greater prestige if you put more
effort into the set-up of your own business brand.
Little money is compensated by TIME
(patience and perseverance) and TALENT
(skills, education, experience or training). They have
learned that with careful planning, mentoring and a
matter of time, they are able to build a successful
business format using their own brand.

8. 2nd Combination: A business set-up that is
GOOD and QUICK
 This is the case of established FRANCHISES. These
brands/business formats protect themselves from non-
committed parties by drawing the line that separates the
serious from not so serious.
 For the good franchises, you pay at least P 300,000
minimum- P 1.5M for a store set-up plus 3-5 royalty fees
and another 3-5% for marketing support.

9. From being CHEAP and GOOD To GOOD and QUICK

10. From being CHEAP and GOOD To GOOD and QUICK

11. The choice of sustainable model setup is
dependent on the amount of:
TIME/ EFFORT- Dreaming big but
starting small. The amount of time
and effort you can allocate for a
business while being an employee
can be a big factor in what type of
business setup you want to put
up.

12. The choice of sustainable model setup is
dependent on the amount of:
CAPITAL/MONEY- The big
dilemma of most start-ups is the
amount of money that is on hand.
If you have some money to spare
for franchisor fees, then the
business set-up is faster and with
products/format already tested.

13. The choice of sustainable model setup is
dependent on the amount of:
RISK APPETITE- Even with
substantial money to spare,
your risk appetite will
always be a factor in what
kind of business set-up.

14. Whatever the cost involved--- it
must be something that you can
sleep with even if you lose it all and
still have the passion to fight or
start all over again in the near
future.

15. HOW MUCH MONEY
DO I NEED TO
START?

16. The BIGGESTreason why
people with good business ideas
cannot go into business is because
they do not have the MONEY to
fund the start-up of their business.

17. I need money to
start a
businesss…
TRUE OR FALSE?

18. Actually, you can fall into 3 situations:
NO MONEY
NOT ENOUGH MONEY
JUST ENOUGH MONEY

19. If NO Money, then USE:
LAWAY/IKOT/PAWIS
Insurance agents
Real estate broker/
Pre-Need Plans
Jobbers/Runners
Trading (Supplier’s Trust)
Consignment
Credit Card
Using skills/talent

20. If NOT ENOUGH MONEY, then use the
“MAKE OR BUY” TECHNIQUE
The common mindset is that you
need to spend a lot for equipment.
But do you really need to buy all the
equipment needed to produce your
product?

21. If NOT ENOUGH MONEY, then use the
“MAKE OR BUY” TECHNIQUE
If you do not have
enough money, another
option is to BEG,
BORROW, then BUY.

22. If JUST ENOUGH MONEY, then use
O.P.M
Use OPM (Other People’s Money)
The amount of money you decide to invest in starting a business will depend on
how much you already have in terms of:
Cash on Hand
Savings
Assets
Retirement Fund

23. Get out of your comfort zone.
Celebrate failure.
Take risks.
Explore. Expose. Experience.

25. Ligao Branch
Legazpi Branch
To Here

27. “Put your little money where your mouth and mind is.” No matter
how little or small it is, you need to put it into the business that you
courted and eventually married.
#SanaALL