Podcast
Questions and Answers
Why is researching the location of a business considered a critical step for entrepreneurs?
Why is researching the location of a business considered a critical step for entrepreneurs?
- Entrepreneurs can avoid paying local taxes.
- It directly influences the cost of initial business registration.
- The location is considered one of the keys to the business's success. (correct)
- It is a requirement by the Department of Trade and Industry.
What is the role of the Department of Trade and Industry (DTI) in the context of setting up a new business?
What is the role of the Department of Trade and Industry (DTI) in the context of setting up a new business?
- To offer consultancy services on business management.
- To provide financial assistance to startup businesses.
- To conduct market research on behalf of new entrepreneurs.
- To register the business after the business has identified the location. (correct)
Why is obtaining a Barangay Clearance important for businesses?
Why is obtaining a Barangay Clearance important for businesses?
- It is a requirement for setting up a business bank account.
- It helps in avoiding national taxes.
- It is a prerequisite for securing international trade permits.
- It is a needed document for securing a Mayor's permit. (correct)
At what stage of business development should entrepreneurs identify and communicate with their suppliers?
At what stage of business development should entrepreneurs identify and communicate with their suppliers?
Why do some businesses choose to hire people after a few years of operation?
Why do some businesses choose to hire people after a few years of operation?
Following the Basic Business Permit Registration Process, which step comes directly after securing a Barangay Clearance?
Following the Basic Business Permit Registration Process, which step comes directly after securing a Barangay Clearance?
What is the significance of creating activities for the opening day of a business?
What is the significance of creating activities for the opening day of a business?
Why is it important to increase marketing activities in the first few weeks of a business's operation?
Why is it important to increase marketing activities in the first few weeks of a business's operation?
When selling a product or service, what should businesses primarily focus on to attract customers?
When selling a product or service, what should businesses primarily focus on to attract customers?
What does 'competitive advantage' refer to when selling a product or service?
What does 'competitive advantage' refer to when selling a product or service?
Why should businesses regularly review their business plan and check the implementation of their plans?
Why should businesses regularly review their business plan and check the implementation of their plans?
What is the primary purpose of introducing additional products or services in a business?
What is the primary purpose of introducing additional products or services in a business?
What is bookkeeping?
What is bookkeeping?
What is the main benefit of daily bookkeeping?
What is the main benefit of daily bookkeeping?
In accounting, what is a chart of accounts?
In accounting, what is a chart of accounts?
Why should every transaction be recorded in bookkeeping, regardless of the amount?
Why should every transaction be recorded in bookkeeping, regardless of the amount?
How does keeping business records help entrepreneurs improve their business?
How does keeping business records help entrepreneurs improve their business?
Why is it important for businesses to keep accurate financial records regarding government regulations?
Why is it important for businesses to keep accurate financial records regarding government regulations?
According to Forbes, what percentage of businesses in the US fail in the first 18 months?
According to Forbes, what percentage of businesses in the US fail in the first 18 months?
Why is math important in entrepreneurship?
Why is math important in entrepreneurship?
Flashcards
Location Importance
Location Importance
Choosing the optimal location for your business, is key to success.
Business Registration
Business Registration
Registering your business with government agencies (DTI, SEC) after identifying the location.
Barangay Clearance
Barangay Clearance
Getting a clearance to be used to get a Mayor's permit.
Hiring People
Hiring People
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Identifying Suppliers
Identifying Suppliers
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Marketing Activities
Marketing Activities
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Business Records Benefits
Business Records Benefits
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Records for Monitoring
Records for Monitoring
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Records for Legal
Records for Legal
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Records and Math
Records and Math
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Selling Products/Service
Selling Products/Service
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Bookkeeping Definition
Bookkeeping Definition
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Chart of Accounts
Chart of Accounts
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Study Notes
Setting Up Your Business
- This is an exciting part of the entrepreneurial journey, but only the beginning
- It's important to sustain the business for future growth
- Key aspects include location, business registration, people, and suppliers
Location
- Choosing the right location is very important
- Entrepreneurs should research the best location for their business
- Location is one of the keys to success
Business Registration
- Register the business with concerned government agencies like DTI and SEC
- This is done after the location is identified and the business name is registered
- After completing the above steps, you can get a Barangay Clearance used to get a Mayor's permit.
People
- It is important to review your business plan to identify the people needed for hiring
- Hiring can sometimes be delayed to save on costs
- Help from others is important to be competitive
Suppliers
- Suppliers should be identified during the prototyping stage
- Start communicating with previously used suppliers for prototyping and ask to be partners
- Suppliers are a very important because you get raw materials and resources from them
Basic Business Permit Registration Process
- The typical order of the process is:
- DTI
- Barangay Clearance
- Mayor's Permit
- Tax Registration
Operating the Business
- After setting up the business it is time to launch it
- Create activities for the opening day to attract customers
- Increase marketing activities in the first few weeks to increase brand awareness
Sell the Product or Service
- Focus on selling the features, advantages, and benefits of your product or service to customers
- Product or Service features are characteristics and components
- Advantages/Competitive advantages are what makes the product/service better than the competition
- Product/Service benefits are what the customers gain and value
Sustainability and Evaluation
- Regularly review the business plan and check implementation
- Sustain the market by continuing to develop marketing activities that will attract customers
- Review the product/service for further improvement, and introduce additional products/services to maintain customer loyalty
Bookkeeping
- Defines as the systematic recording, organizing, and retrieving of all the financial transactions of a business or individual in a specific format
- Should be done on a day-to-day basis
- Ensures correct, up-to-date, and comprehensive information on each individual transaction
- Every transaction must be recorded regardless of the amount
Chart of Accounts
- The chart of accounts is a financial tool that lists all the accounts for a given accounting system
- Financial transactions are grouped and categorized into accounts
- Each account is a unique record for each type of asset, liability, equity, revenue, and expense
Reasons for Keeping Business Records
- An article showed that 80% of businesses in the US fail within the first 18 months
- Business records allow you to learn from both your mistakes and success for constant improvement
- Business records allow monitoring performance versus targets
- There are government regulations, like taxes, that require accurate financial records
- Entrepreneurship involves math and financial statements
- Complete and legible business records help the entrepreneur hire help from accountants
- Incomplete records are impossible to recreate, so having everything recorded makes it easier for others to help
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