ENTREP Flashcards
a written document which shows the conversion process which takes place in a business – from input to a desirable output
4M’s of Operation
usually used by businesses under the manufacturing sector
Production Plan
used by servicing businesses
Operation Plan
Two (2) Classifications of resources:
Human Resources
Nonhuman Resources
- The process to be followed in effectively manufacturing or delivering a product or service
- set of procedures and instructions which you must follow in order to achieve your goal
- Must always be systematic and people in the enterprise must be well-informed about this
- Using a flowchart will help the business visualize the actual method involved
Method
The right human resource who will handle certain business operations
Manpower
The technology used in efficiently operating the business operations
Machines
To be used in creating a product or performing a service
Materials
- The conversion of raw materials into finished goods that are acceptable to the customer’s standards
- The following are its elements:
Inputs
Process
Outputs
Manufacturing of goods
Manufacturing sites: the cheapest and highly flexible
Home-based
Manufacturing Sites: requires the biggest amount of capital expenditure
Commercial space purchased
Manufacturing sites: if home is not viable anymore
Commercial space for rent
- step by step guide of the employees and the manufacturing equipment
- The Process flow Objectives:
right inputs are properly used
process is performed according to standards
acceptable outputs are produced
Manufacturing process flow
service businesses must be more meticulous when it comes to the service delivery process because services are intangible, and the only way the customer can appreciate the service is by remembering how pleasant his or her experience was
service delivery process
a detailed flowchart of the service business
service blueprint
- The process of bringing products or services to customers
- in selling physical goods, the location, the processes, and the distribution of the products to the customers should be planned
Distribution of goods and services
the manufacturer will deliver the products to the distributors, to the wholesalers, to the retailers, and then finally to the customers.
Supply Chain/ Distribution Channel
handles the invention, development and production of the product or service
manufacturer
buy products or services from the manufacturers and sell them at a markup price to either wholesalers or retailers
distributors
negotiate with buyers as to how much or how many are to be sold, so the manufacturer will be able to deliver the goods directly to the buyer
agents
agents get the product in advance to demonstrate them to the customers return the merchandise to the manufacturers if unsold
consignment
- To look for the right employee for the business operation, the following are the kind of staff one should have:
Skilled
Well qualified and well verse in business
Responsible
Dedicated and committed to work
Honest and with integrity
Able to attain targets and set goals
Not indulge in wasteful expenditure
Loyal
Team player
Manpower
The entrepreneur must also establish a seamless payment process. There are instances when the customers do not want to pay in cash and are usually attracted by flexible and customer-friendly payment terms such as credit cards, installment plans, or simple accounts payable or pautang.
Payment process
enumerates the duties and responsibilities of the potential employee, including the scope, limitations, and terms and conditions of employment.
Job Description
educational background, work experience, specific skill or knowledge, and work attitude.
Employee Qualifications
screening of resumes, conduct of interviews, qualifying exams, or psychology tests.
Selection of Job Applicants
a job contract offer where the terms and conditions (position, responsibilities, salary and benefits, work schedule, regularization etc.) of employment are discussed.
Job offer
training of people
Employee Development
process of appointing third party manufacturers to do the production process which saves the entrepreneur in buying expensive machineries.
Outsourcing
items to be used in creating a product or performing a service, which includes supply chain management
mainly form part of the finished product
Materials
own products or services to a present supplier
Purchasing
storing the finished goods manufactured in a facility until they are distributed to end users
Warehousing
process of efficiently transferring the products to retailers or consumers
Transportation
refers to the products, materials or supplies stored inside a warehouse prior to production, shipping or selling
Inventory
- also known as Machineries, are the basic tools to convert the input into output
- include various tools, equipment, instruments, or devices which could be used by the business to produce a product or generate a service
- designed to make the work faster and easier
Machines
- Must be strategically placed in the manufacturing site or in the service delivery area.
- Must prepare a facility plan that details the most economical way to manufacture a product.
- Place the facility where they can be efficiently used.
Equipment and other Facilities
charging debit/credit card, tracking sales, and storing data, analyzing purchases.
Point of Sale (POS) Machines
accounting business transactions, profitability, sales, inventory etc.
Accounting & Inventory Software
order taking, 24/7 marketing, online conversations, collecting customer information etc.
Website
An act to regulate the use in business transactions of names other than true names, prescribing the duties of the director of the bureau of commerce and industry in its enforcement, providing penalties for violations thereof, and for other purposes
REPUBLIC ACT NO. 3883
Issues barangay clearance, mayor’s business permit, Certificate of final electrical inspection, and Health and Sanitary Permit
Local Government Unit (LGU)
Enforce social and labor legislation to protect the working class and regulate the relations between the worker and his employers. Must be secured if you employ 5
Department of Labor and Employment (DOLE)
Promotes and regulates business activities by registering and licensing businesses
Department of Trade and
Industry (DTI)
Enforces tax, laws, and assesses and collects all national revenue taxes, fees and charges.
Bureau of Internal Revenue (BIR)
Agency in charge of development and monitoring cooperatives in the country
Cooperative Development Authority
Processes applications and issues a certificate or registration for partnerships and corporations.
Securities and Exchange Commission
Aims to provide protection to its members and beneficiaries 14% of an employee’s monthly salary (Employer: 9.5% | Employee: 4.5%)
Social Security System
National savings program and affordable shelter financing for the Filipino worker fixed monthly contribution of ₱200.00 (50/50- employer:employee)
Human Development and Mutual Fund (HDMF)
Aims to provide Filipinos with financial assistance and access to affordable health services. Employer: 50% of contribution Employee: 50%, monthly deducted on salary
Philippine Health Insurance Corporation
Application for Registration for Sole Proprietorship
Form 1901
Payment/ Remittance Form
Form 0605
Certificate of Registration
Form 2303
“_____ in its broad sense, is not only the making of sales, that is, affecting ownership transfers; but also is identifying prospective consumers, stimulating demands and providing information and service to buyers.” – Still, Cundiff, and Govoni
SELLING
Using psychological pressure on the customer by appealing to their fear, greed, and pride to sell a given product or service
AGGRESSIVE SELLING
The seller, acting as a trusted advisor, assists the buyer in identifying needs and offering solutions within their relationship.
CONSULTATIVE SELLING
Focuses on one-time sales, with the ultimate goal of making the maximum amount of sales from the maximum amount of customers
TRANSACTIONAL SELLING
Involves developing a partnership between buyer and seller.
COLLABORATIVE SELLING
Online selling is a form of electronic commerce which allows sellers to directly sell goods or services to a buyer over the Internet using a web browser.
ONLINE SELLING
“It shall be unlawful to offer any consumer product for retail sale to the public without an appropriate price tag, label or marking publicly displayed to indicate the price of each article and said products shall not be sold at a price higher than that stated therein and without discrimination to all buyers.”
Price Tag Requirement
REPUBLIC ACT NO. 7394, Article 81
Specifically prohibits the manufacture, importation, exportation, sale, offering for sale, distribution, transfer, non-consumer use, promotion, advertising or sponsorship of health products (including medical devices and supplies) without the proper authorization.
Food and Drug Administration (FDA) Act of 2009”
REPUBLIC ACT NO. 9711, Article 81
It is the process of predicting the future based on the past and present data and analysis of trends.
Forecasting
experienced / first hand data
Primary
data retrieved from a source of primary data
Secondary
the expenses or costs incurred by a business to conduct its operations on a certain time frame
Operating Costs
expenses that have to be paid even if no production takes place
Fixed Cost
expenses that depend on the production.
Variable Cost
- the expenses incurred during the process of creating a new business
- the amount of money that is needed to buy the facilities and equipment, to register and license the business and get the necessary certificates
Start-up Costs
include a business plan, research expenses, borrowing costs, and expenses for technology. Includes: Research expenses, Borrowing costs Infrastructure or Rent Insurance, License, and Permit Fees, Technological Expenses, and Equipment and supplies
Pre-opening Startup Costs
include advertising, promotion, and employee expenses. Includes: Advertising, Product promotion, and Employee expenses.
Post-opening Startup Costs
direct cost to producing the goods that your business sells
Cost of Goods Sold
A _____ forecast is an essential tool for managing a business of any size.
It is a month-by-month forecast of the level of sales you expect to achieve.
Sales
The net amount of cash and cash equivalents being transferred into and out of a business.
Cash Flow
Describes money flows involved directly with the production and sales of goods from ordinary operations
cash flow from operations
Reports how much cash has been generated or spent from various investment-related activities in a specific period.
cash flow from investing
shows that net flows of cash that are used to fund the company and its capital
cash flow from financing
Computing for Profits
Profit = Revenue – Total Costs
Total Costs = Revenue - Profit
Revenue = Total costs + Profit
Total costs = Fixed costs + variable costs
- often referred to as record keeping
- the accounting part that records transactions and business events in the form of journal entries in the accounting system
Bookkeeping
reflects the value of resources owned by a company and is expected to provide future economic benefit. Examples include cash, accounts receivable, inventory and property.
Asset account
reflects the costs a company incurs for conducting business and generating revenue. Examples include the cost of goods sold (COGS) or services delivered, employee salaries, travel, advertising and rent.
Expense account
reflects the amount a company owes. Examples include credit card accounts/balances, accounts payable, notes payable, taxes and loans.
Liability account
reflects the shareholders’ interests in the company’s assets. Examples include stocks, distributions, capital contributed, dividends and retained earnings.
Equity account
reflects an increase in value from activities not related to the core business. Examples include money won from a lawsuit and a gain in value from the sale of an asset or business property
Gain account
reflects the amount of money generated from operating and nonoperating activities. Operating examples include sales and consulting services; nonoperating examples include interest and investment income
Revenue account
is the opposite of a gain account, reflecting a decrease in value from non primary-business events. Examples include money paid for the loss of a lawsuit and a loss in value from the sale of an asset or business property.
Loss account
Records incoming money. It increases assets and expenses, and lowers income, liabilities, and equities.
Debit
Records outgoing money. This reduces assets and expenses, and increases revenue, liabilities, and equity. Also, it is the money owed to a supplier / vendor by an enterprise.
Credit
