STARTING A NEW BUSINESS

Mr. Angelo Marco U. Lacson

DLS-CSB Resident Faculty

Just Where do you Begin . . .

Are you ready for entrepreneurship?

What kind of business will you enter into?

How do you start?

How much capital do you need?

BRAINSTORMING FOR BUSINESS

Create a NEW product or service

Improve an EXISTING product

or service

BRAINSTORMING FOR BUSINESS

Create a NEW product or service

Improve an EXISTING product

or service

SUPPLIER

SELLER / RETAILER

DISTRIBUTOR

CONCEPT DEVELOPMENT

Your concept must have a solid

foundation otherwise everything else will

be confused.

CONCEPT DEVELOPMENT

Company Name

Trade Name

Mission Statement

Vision Statement

Trade Logo

It must be legally protectable

It must be easy to pronounce

It must be easy to remember

It must be easy to recognize

It should attract attention

It may suggest product benefits or suggest product usage

It may suggest the company or product image

It may distinguish the product's positioning relative to the competition

QUALITIES OF A GOOD BRAND

• Ali Baka (Shawarma)

• Anita Bakery• Aristoback (Resto behind Aristocrat)

• Bali Gulp (Drinking Place beside Valley Golf)

• Crispy per Minute (Crispy Pata Eatery)

• Caintacky Fried Chicken (Resto in Cainta)

• Mercy Buko (Fresh Coconut Roadside Shop)

• Cooking ng Ina Mo (Carinderia in Boni Avenue)

• Cooking ng Ina Mo Rin (A competitor)

Brand Management

Do you think these names are funny? Maybe . . . But as a future entrepreneur, do you

honestly think you will be able to build an empire of 100 branches

of “Cooking ng Ina Mo”?

ASSIGNMENTDefine the following marketing

terms related to brand management. (Due next mtg.)

1.Brand Awareness2.Top-of-Mind Awareness3.Brand Association / Brand

image4.Brand Preference5.Brand Loyalty

CONCEPT DEVELOPMENT

Business Type

Operating Hours

Target Market

Concept/Themes

Menu / Menu of Services

LOCATION! LOCATION! LOCATION!

Will your location bring in the greatest number

of customers at the lowest cost to you?

LOCATION ANALYSIS

LOCATION KEY ISSUES

Visibility

Accessibility

Suitability

Zoning

Costs

AREA EVALUATION

Population Statistics

Area Growth Pattern

Attractions / Visual Appeal

Business that generate demand

New Constructions / Renovations

The core of THE GENERICS PHARMACY is an advocacy of making medicines accessible to ALL Filipinos.

MARKETING STRATEGIES

How will you attract and retain customers?

SWOT and TOWS Financial Aspects

Physical Resources

Management Capabilities

Market

Management Information

Supply of Raw Materials

Social Environment

Production Process

Political Environment

Economic Environment

COMPETITION CHECK

Keep your friends close, and your enemies even

closer.

If you can’t beat them, join them!

COMPETITION ANALYSIS

DIRECT vs.

INDIRECT

DIFFERENTIATION STRATEGIES

Product Strategies

Service Strategies

Pricing Strategies

Image Strategies

PRICING STRATEGIES

Formula Price / Cost Plus

Market-Oriented Pricing

Competition-Based Pricing

Psychological Pricing

Premium Pricing / Prestige Pricing

Penetration Pricing / Introductory Pricing

Economy Pricing

Price Skimming

Product Bundling Pricing

Value Pricing Strategy

Promotional Pricing

MARKETING STRATEGIES

Advertising & Public Relations

SCHEDULE

February 1 – Quiz (Phase1-3) Phase 4 – Financial Projections (Please bring Calculator)

February 6 – Phase 4 continuation (Please bring Calculator) February 8 – Quiz (Phase 4) Phase 5 (Please bring Calculator)

February 13 – Quiz (Phase 5) Review

February 15 – Midterm Examination

Just how much money are we talking about?

TOTAL COST OF INVESTMENT

CAPEX (CAPital EXpenditures) Refers to the cost of developing a product or system

OPEX (OPerating EXpenditures) Refers to the on-going costs for running it.

CAPEX & OPEX

For Example:the purchase of a printer is the CAPEX, and the annual paper and ink cost is the OPEX.

TOTAL COST OF INVESTMENT

Renovation or Construction CostsConsultant’s Fees (e.g. Architect, Interior Designer, Financial Consultant, etc.)Rent Advances & DepositsBusiness Permits Furniture, Fixtures, & Equipment

Smaller Items (e.g. Utensils, Menu Cards, etc.) and Related Supplies (e.g. Office, Dining, Kitchen, and Cleaning, etc.)Revolving Fund - Salaries & Wages, Stock Inventory, and UtilitiesFunds - Loose Change Fund & Petty Cash FundsUniform Expenses

CAPEX + OPEX(plus 10%

contingency)

TOTAL COST OF INVESTMENT

12-month Projection

How much money will

you be making?

PROJECTED INCOME STATEMENT

PROJECTED INCOME STATEMENT

SalesLess: Cost of Goods Sold

Gross Profit / IncomeLess: Operating Expenses

Net Profit / Income Less: Income Tax

Net Profit after Tax

REVENUESFood SalesBeverage Sales

PROJECTED INCOME STATEMENT

OPERATING EXPENSESRentUtilitiesSalaries & WagesGovernment Payables13th month PayDining SuppliesKitchen SuppliesCleaning SuppliesDepreciation ExpenseTransportation ExpensesMarketing Expenses

Cost of Goods SoldFood CostBeverage Cost

Income TaxIncome Tax 32%

PROJECTED INCOME STATEMENT

BE CONSERVATIVE

WITH YOUR REVENUE

PROJECTIONS AND EXAGERATE

A LITTLE WITH YOUR STATEMENT

OF EXPENSES

ROI is a measure of profitability; the higher the ROI, the

better.

RETURN ON INVESTMENT

Annual Net Income

RETURN ON INVESTMENT

Total Cost of Investment

x 100

= ROI (%)

Php180,000

Php500,000 x

100 = 36%

The amount of time taken to break even on an investment.

It can provide only a partial picture of

whether the investment is worthwhile.

PAYBACK PERIOD

Total Cost of Investment

PAYBACK PERIOD

Average Monthly Income

= PAYBACK (Months)

Php500,000

Php15,000 = 34 months

(2 years and 10 months)

Thank you.