CHAPTER8_ENTREPMIND

Registration of the business name with the Department of Trade and Industry (DTI)

Sole proprietorship

Registration of the Article of Incorporation and By-laws with the Securities and Exchange Commission

Partnerships or corporation

Municipal/city permits where

Base of operation

Registration with the Bureau of Internal Revenue for

Tax Identification Number (TIN) and other requirements under internal revenue law and rules

Registration of the business with the SSS, PhilHealth, HMD (Pag-IBIG), and other

Social Security System, Philippine Health Care Corporation, Home Mutual Development Fund Inc. (Pag-IBIG Fund)

Business Name

Registered business identity

_ and _ have the prerogative in approving or rejecting a business name

DTI and SEC

Two clear policy when registering a business name

1. Should not be similar with an already existing business name

2. Should not be misleading or seeming to have legal complications

The business name must be understandable so it is easily stored in the memory.

Easy to recall or remember

Produces positive or favorable feeling upon saying to public

Pleasant meaning creates pleasant feelings

Must be cited as freely as it can be

Easy to pronounce

Must be simple.

Easy to spell

Must describe the product or service.

Related to the product/service

Organize or register a small business group at a ___ ____ requirement required by law.

Minimum capital

Use your __ as an office or explore __ an office with another company

Home, sharing

Do some __ or any forms of tasks within your __ to do.

Work, capability

Purchase __ office equipment but be __ and take extra __ in doing so.

Used, wise, precautions

Make use of _ labor and other resources within your _

Family, household

Push your _ hard for prompt _. Convince them to pay you __.

Customers, payment, on time.

How to raise capital

1. Money can come from your own pocket.

2. Borrow money from close relatives or friends.

You can get quick cash by pawning your jewelry and other valuables.

Pawnshop

• Easy source of credits

• It ends an amount up to three or fives times bigger than the money a member has deposited in the cooperative.

• Interest charges are minimal.

Credit cooperatives

• Who lend quick money without collateral but charge exorbitant interest rates.

• “five-six”

Money lenders

• A cross between moeny lenders and banks

• Estend short term loans with or without collateral

• Interest rates are higher banks but lower than money lenders

• Three -fice percent a month

Lending investors

• Include banks, financial institutions, certain gov development orgs.

• Have the authority to lend money

Other formal sources of credit

• Payable in 1 yaer or less

• Self-liquidating (generate funds)

Short-term loans

• 1 to 3 years

• Offered by banks and other financing institutions

• Backed by collateral securities and is paid back in installlment

Intermediate loans

• 10 or more years to pay

• Extended by private or gov banks

Long-term loans

Some Guidelines in Borrowing

1. Evaluate whether you are in a good position to borrow.

2. Estimate accurately the amount you need to borrow.

3. Choose the bank to borrow.

Deciding where to locate

• Three primary lcoation options

Traditional physical building, the entrepreneur’s home, and the internet

Key factors in selecting a good location

1. Customer accessibility

2. Business nevironment conditions

3. Availability of resources

4. Personal Preferences of the entrepreneur

5. Site availability and cost

Cutomer accessibility

Vital in industries in which the cost of shipping the finished product is high relative to the product’s value. (E.g. ice must be produced near consuming markets)

Business environment conditions

• Weather is one important environmental feature that influences the location decisions.

• Competition, legal requirements, and tax structure are a few of the other critical environmental factors

Availability of resources

• Raw materials, labor supply and transpo are some of the factors

Personal preferences of the entrepreneur

• Offer unique advantages

Site availability and costss

• If the top choice is unavailable, other options may be considered.

Neighbor mix

Who's next door?

Security and safety

How safe is the neighborhood?

services

Does the city provide trash pick up for example?

Past tenant’s fate

What happened to previous businesses in that location?

Location lifestyle’s stage

Is the area developing, stagnant, or in decline?

Equipping your business

1. What level of technologies will i use?

2. What activities are required to convert the inputs? What operation should be done?

3. How can each of these operations be done?