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Entrep Notes

The document discusses profit calculation and costs including variable costs like materials and fixed costs like rent. It provides guidelines for successful business plan implementation including objectives, tasks, time allocation and progress monitoring. It also outlines the basic requirements and steps to start a business in the Philippines including registering with SEC, DTI, the mayor's office and BIR as well as setting up an accounting system, advertising, and securing insurance.

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SUAVE C. REVILLAS
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22 views3 pages

Entrep Notes

The document discusses profit calculation and costs including variable costs like materials and fixed costs like rent. It provides guidelines for successful business plan implementation including objectives, tasks, time allocation and progress monitoring. It also outlines the basic requirements and steps to start a business in the Philippines including registering with SEC, DTI, the mayor's office and BIR as well as setting up an accounting system, advertising, and securing insurance.

Uploaded by

SUAVE C. REVILLAS
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Before you proceed, let us first recall our previous lesson.

Profit is the amount you gain after selling your product. In computing your
profit, you just simply follow this formula:
Sales - Cost of Goods Sold = Gross Profit
The gross profit represents the difference between net sales and cost of sales.
Variable costs are those things that change based on the amount of product being
made and are incurred as a direct result of producing the product.
Variable costs include:
1. Materials used
2. Direct labor
3. Packaging
4. Freight
5. Plant supervisor salaries
6. Utilities for a plant or a warehouse
7. Depreciation expense on production equipment
8. Machinery

Fixed costs generally are more static in nature. They include:


1. Office expenses such as supplies, utilities, a telephone for the
office, etc.
2. Salaries and wages of office staff, salespeople, officers and owners
3. Payroll taxes and employee benefits
4. Advertising, promotional and other sales expenses
5. Insurance
6. Auto expenses for salespeople
7. Professional fees
8. Rent

Guidelines for Successful Business Plan Implementation:


1. Objectives – the entrepreneur should have a clear idea on what is his purpose of
putting up his enterprise.
2. Tasks – this means that the entrepreneur must know what are the tasks he has to
perform in order to realize his objectives.
3. Time allocation – This means that the entrepreneur should have a time table or a
schedule to follow for every task so that the tasks will be accomplished timely and
he can realize his objectives.
4. Progress – This means the entrepreneur should monitor the development of the
tasks and the accomplishment of the objectives.
In operating a business, the entrepreneur should first consult professionals for
advices, like accountants or consultants from small enterprises. In your case, you can
consult your teacher in Entrepreneurship or anyone you think who could help you.
The following are the basic requirements to start a business in the Philippines:
 Securities and Exchange Commission (SEC) Registration - for partnership
or Corporation
 Department of Trade and Industry (DTI) Registration - for your business
tradename
 Mayor’s Business Permit - for getting the license to operate in the city or
municipality and payment of your local business taxes
 Bureau of Internal Revenue (BIR) Registration - for getting TIN, official
receipts and invoices, registering your books of accounts and paying your
national Internal revenue taxes
 SSS, PhilHealth, and Pag-Ibig Fund registration - for registering yourself or
your company as an employer and for remitting your employees’ contribution
together with your employer’s share
Other steps to follow before operating a business are as follows:
1. Set up an accounting system or hire an accountant. Knowing how the
business is doing financially is important for planning and survival.
2. Advertise the business. No one will buy the products or services if customers
do not know that the company exists. You can make use of the social media.
3. Secure insurance for the business. Liability insurance protects the business
in the event of litigation. Consider life and disability insurance, health insurance
and fire insurance when you are leasing an office or storefront.
Keeping Business Records
Good record keeping can help protect the business, measure the performance
and maximize profit.
Records are the source documents, both physical and electronic, that specify
transaction dates and amounts, legal agreements and private customer and business
details.
Developing a system to log, store and dispose of records can benefit the
business. A systematic recording allows you to:
A. plan and work more efficiently;
B. meet legal and tax requirements;
C. measure profit and performance;
D. protect your rights; and
E. manage potential risks

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