This document outlines the steps involved in planning a business enterprise. It discusses why planning is important due to hope and ambition. Successful businesses are carefully chosen, planned, organized, funded and directed. When choosing a business, promoters must consider unmet needs and inadequate supply. Promotion involves discovery, assembling, and financing. Discovery involves appraising market outlook and feasibility. Assembling requires obtaining licenses, permits and contracts. Financing raises capital for promotion, organization and operations. A prospectus provides information about a proposed business or security offering.

1. Planning a Business
Enterprise
A Finance Group Report by:
RADIA, Nizren
LU, Michael
REMOTIN, John Brando
ENRIQUEZ, Renzo Ray
CHIONG, Averie Camille
GUADALQUIVER, Vjsyl
DY, Elizabeth Joy
TANGI-AN, Krichel
RAMOS, Celine Amalia

2. Why Do We Plan?
Because of these two:
 Hope
 Ambition
SPUR MAN TO PROGRESS!

3. Making the Decision
Carefully chosen
planned
organized
provided with funds
directed
+ well-managed
SUCCESSFUL BUSINESS!

4. In choosing a business, there could be
two questions to be considered:
1. What needs and wants of the people
have not yet provided for my
business?
2. What needs and wants are currently
being supplied but whose supply is still
for from being adequate or
satisfactory?
WE MUST ALSO CONSIDER THE PROSPECT
OF MAKING A PROFIT!

5. The Needs of a Business
1. It’s people could face risks and to
make sacrifices
2. Courage and indomitable spirit
3. Understanding of human relations
4. Financial Ability

6. What is Promotion?
 Simply refers to the method of
discovering opportunity and taking
advantage of the opportunity for
the use of existing resources such
as funds, materials, talent and
managerial ability.

7. Promotion divided into 3 major parts:
Discovery Assembling Financing

8. Discovery
 Appraising the outlook of the
business
Questions to be considered:
1. Is the proposed project possible?
2. Is it feasible?
3. Can the new commodity be
produced and sold for a price
which the consumer will be willing
to pay?

9. a. Nature of the Industry
 In many cases, it is necessary to consider not
only the proposed business itself but also the
existing demand for the products or services
of the industry involved.
b. Government Regulations
 There is no question that, while it is an
accepted dictum that justice and sound
policy forbid the government to encourage
one industry to the detriment of another,
nevertheless, government regulations which
have become extended on many fronts at
times have provided special advantages to
particular industries although the regulation
many adversely affect other industries.

10. C. Potential Market
 The amount for profitable operations in
any industry depends to a great extent
upon the demand for the commodities
and services which that industry
produces and its capacity to produce
them in amounts desired.
D. Cost and Availability of Materials
Needed
 Question to be considered: Is the source
of supply of raw material (in the case of
a manufacturing industry) adequate,
certain, and not likely to be exhausted?

11. E. Proposed Location
 A major factor to consider when a
company is organized is that of
determining a location for the
business.

12. Assembling
 Consists of making all preliminary
plans, entering into contracts,
obtaining permits, licenses or
franchises necessary to start the
operation of the business, and
other related matters.

13. a. Getting a License
 Although there are individuals who
engage in business operations even
before they have secured a license or
permit for such purpose, it is a sound
and wise policy first to obtain the
license before embarking in the
business.

14. b. Entering into Contracts
 Since any business enterprise must have
a fixed place of business, it must use a
building, large ground, and the like. Shall
the business enterprise enter into
contract of lease with the owners of the
building it will occupy with an option to
purchase the same after a given number
of years? Or shall it purchase it outright at
the outset? How about the machines
and equipment it will use? How shall they
be procured, cash or installment?

15. Financing
 Consists in the raising, providing,
and managing of all the money,
capital, or funds of any kind to be
used in connection with the
attainment of the functions and
objectives of the business such as:
for promotion, organization, and
operations.

16. The Role of the Promoter
 He does task of investigation and
study of the prospective business in
a very haphazard manner.
 His work includes also financial
study and project profitability,
business organization, engineering
study, financial requirements,
source of funds, and the like.

17. Types of Promoters
a. Professional Promoters- are
engaged in discovering business
opportunities and taking advantage
of them by marshalling capital and
managerial skills and ability for the
purpose of deriving profits.
b. Side-line Promoters- are engaged
in other lines of economic activities
for their source of income.

18. c. Banking Promoters- In addition to their
major functions, commercial banks may
at times be observed to act as
promoters for their client- customers.
d. Financial Promoters- Investment houses
generally are engaged in the promotion
of certain business ventures through the
sale of securities.
e. Subdivision Promoters- This type of
promoters specifically dedicate
themselves to the task of developing
new subdivisions in a particular region or
community.

19. What is a Prospectus?
 A prospectus may be defined as a
well prepared, printed statement
which gives out desired
information of a proposed
commercial or industrial
undertaking and/ or describes a
particular security offered for sale.