Entrep Unit III
Fixed Capital Investment
Assets needed by the business for it to operate and do business
Goals
broad long-term desires that an organization seeks to accomplish
Preliminary Analysis, Market Assessment, Organizational, Financial Aspect
Steps to a feasible study
Working Capital
To keep the business going for the first few cycles of operation
Industry
is the general name for the line of product or service being sold or the firms in that line of business
Partnerships
2 or more people who co- own the entity for making money
Business Plan
A document designed to detail the major characteristics of a firm.
Target market
A specific group of people you have decided to target with your products or services
Pre-operating Expenses
Cash expenses that the business incurs prior to the actual start of operations
Waste disposal
Description and type of waste to be disposed
Socio-economic Plan
Determine what are the social, economic and environmental implications of the study
Funding startup enterprises. Attracting investors. Entrepreneur's blueprint. Constant motivator
Importance of business plan
Possible
Involves the availability of skills, technology, hardware and infrastructure to set up the business.
Production plan & sales forecast
Projected scale of production. Where the input requirement will depend on the production schedule and size.
Packaging and labeling
consider the materials needed, designs availability of suppliers. specifications and sustainability to the product
Mission
declares the company's purpose for being and what it aims to accomplish as an enterprise
Product
description of the product/service or product mix
Price
determine price levels
Policies
establish the rules of conduct for a company. They not only describe the responsibilities for the employer and the employees, they also create a frame of reference for handling the countless issues that arise in an organization.
Cooperative
formed by at least 15 members working together to achieve social and economic goals
Corporation
formed by at least 5 parties; considered a "legal person" which allows it to conduct business acts that a natural person can do
Liabilities
how much it owes other entities
Place/Distribution
how to distribute the products
For services,
identify the appropriate procedure in delivering the right services to the target customers and present a service process flowchart
Objectives
more specific targets of performance that everyone undertakes to accomplish the goals
Owner's Equity
net worth of the business; represents the excess of all assets of the business over all liabilities
Matrix
organization is divided and aligned in such a way that same-skilled people are pooled together in a group reporting to a group manager
Hierarchical
organization is divided and aligned into different levels where the line of command moves downwards from the top level to the next lower level down to the bottom
Single Proprietorship
owned and manage by one individual
For processing or manufacturing of food and non-food products
prepare a flowchart or flow of diagram to detail the step-by-step manufacturing process
Materials checklist and other supplies
present a detailed breakdown using a checklist in a tabulated format specifying the description and specification, quantity, unit cost, total amount and sources
Income Statement or Profit and Loss Statement
shows the profitability of the business during the period covered by the statement
Assets
shows what the business owns
Vision
states what the organization is and what it stands for what the business is all about and what the values of the business are
Feasible
the extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market and regulatory environment) forces that could affect your business.
Flat or horizontal
there are few or no levels; managers and workers; for small/individual unit organizations
Market potentials
whether or not the business can sell its products and services
Technical feasibility
whether or not the enterprise can produce what it intends to sell and at what cost.
Financial viability
which estimates how much is needed to start the business and when can it make money.
Statement of Cash Flows
presents how the changes in the balance sheet and income statement accounts affect the company's cash balance
Balance Sheet
presents the financial position of a company at a specified date
Promotion
promotional activities
Unique Selling Proposition (USP)
refers to the proposed business' competitive advantage what sets it apart from the competition