Start and Grow your Business by DTI

START AND GROW YOUR BUSINESS

START YOUR BUSINESS

The Micro, Small, and Medium Enterprise Development (MSMED) Plan was developed in consultation with national, regional, and provincial stakeholders. A participatory approach was adopted involving a series of stakeholder consultation, validation, and recalibration workshops participated in by representatives from the private sector, local government units (LGUs), national government agencies (NGAs), the academe, and civil society.

The MSMED Plan has four major outcome or result portfolios, namely Business Environment (BE), Access to Finance (A2F), Access to Markets (A2M), and Productivity and Efficiency (P&E). It will also take into consideration global themes and cross-cutting issues related to gender, climate change, corporate social responsibility, and migration.

BMBE

Barangay Micro-Business Enterprises (BMBEs) can now register their businesses, free of charge, at the Department of Trade and Industry (DTI) through the agency’s Negosyo Centers.

Registered BMBEs can avail of government incentives that include exemption from the payment of income tax for income arising from the operation of the enterprise, exemption from the coverage of the minimum wage law, special credit window of government financing institutions that will service the needs of BMBEs, as well as technology and marketing assistance.

Under Republic Act No. 9178 or the BMBEs Act of 2002, a BMBE is referred to as any business entity or enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located.

The DTI issued Department Administrative Order (DAO) No. 16-01 last April 22, 2016 which provides guidelines on registering BMBEs at Negosyo Centers. Under DAO 16-01, DTI is the sole agency which shall issue a Certificate of Authority (CA) to registered BMBEs at Negosyo Centers or at DTI offices where Negosyo Centers have not been set up.

BMBEs register at the Office of the Treasurer of the city or municipality where the business is located.

Republic Act 9178 or the BMBE Act of 2002 recognizes the role of BMBEs as an essential driving force for the country’s economic development. According to the law, BMBEs are “seedbeds of Filipino entrepreneurial talents and strengthening them would increase job generation, provide livelihood and augment Filipinos’ quality of life.”

Download the BMBE Application Form.

What is a “Business Plan”?

The primary value of your business plan is to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects.

A business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. This step is too often skipped, but we make it easy for you by providing a format to build your plan as you progress through this course.

Business plans can vary enormously. Libraries and bookstores have books devoted to business plan formats. But this is a place to start. You can then go on from here to design one that would be ideal for your particular enterprise.

What is a “Business Plan”?

The primary value of your business plan is to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects.

A business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. This step is too often skipped, but we make it easy for you by providing a format to build your plan as you progress through this course.

Business plans can vary enormously. Libraries and bookstores have books devoted to business plan formats. But this is a place to start. You can then go on from here to design one that would be ideal for your particular enterprise.

Why prepare a business plan?

Your business plan is going to be useful in a number of ways. Here are some of the reasons not to skip this valuable tool:

  • First and foremost, it will define and focus your objective using appropriate information and analysis.
  • You can use it as a selling tool in dealing with important relationships (lenders, investors, and banks).
  • You can use the plan to solicit opinions and advice from people, including those in your intended field of business, who will freely give you invaluable advice. Too often, entrepreneurs forge ahead without the benefit of input from experts who could save them a great deal of wear and tear.
  • Your business plan can uncover omissions and/or weaknesses in your planning process.

Business plan format: A systematic assessment of all the factors critical to your business purpose and goals.

Here are some suggested topics you can tailor into your plan:

  • A vision statement. This will be a concise outline of what your business purpose and goals will be.
  • The people. By far the most important ingredient for your success will be yourself. Focus on how your prior experiences will be applicable to your new business. Prepare a resume of yourself and one for each person who will be involved with you in starting the business. Be factual and avoid hype. This part of your business plan will be read very carefully by those with whom you will be having relationships, including lenders, investors and vendors. Templates for preparing resumes are available in your library, bookstores and the Internet under “resumes.”
  • However, you cannot be someone that you are not. If you lack the ability to perform a key function, include this in your business plan. For example, if you lack the ability to train staff, include an explanation how you will compensate for this deficiency. You could add a partner to your plan or plan to hire key people who will provide skills you do not have. Include biographies of all your intended management.
  • Your business profile. Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve.
  • Economic assessment. Provide a complete assessment of the economic environment in which your business will become a part. Explain how your business will be appropriate for the regulatory agencies and demographics with which you will be dealing. If appropriate, provide demographic studies and traffic flow data normally available from local planning departments.
  • Cash flow assessment. Include a one-year cash flow that will incorporate your capital requirements. Include your assessment of what could go wrong and how you would plan to handle problems. Include your marketing plan and expansion plans and refer to helpful government websites such as the Small Business Administration.

Six steps to a great business plan

Start-up entrepreneurs often have difficulty writing out business plans. This discipline is going to help you in many ways so do not skip this planning tool! To make it easier, here are six steps that will get you to a worthwhile plan: 

  1. Write out your basic business concept.
  2. Gather all the data you can on the feasibility and the specifics of your business concept.
  3. Focus and refine your concept based on the data you have compiled.
  4. Outline the specifics of your business. Using a “What, where, why, how” approach might be useful.
  5. Put your plan into a compelling form so that it will not only give you insights and focus but, at the same time, will become a valuable tool in dealing with business relationships that will be very important to you.
  6. Review the sample plans we furnish and download the blank format to a MS Word document. Fill this in as you progress though the course.
Check out if your plan includes the following necessary factors, which will produce a successful business:
  • A sound business concept. The single most common mistake made by entrepreneurs is not picking the right business to begin with. The best way to learn about your prospective business is to work for someone else in that business before beginning your own. There can be a huge gap between your concept of a fine business and reality.
  • Understanding your market. A good way to test your understanding is to test market your product or service before your start. You think you have a great kite that will capture the imagination of kite fliers throughout the world? Then hand-make some of them and try selling them first.
  • A healthy, growing and stable industry. Remember that some of the great inventions of all time, like airplanes and cars, did not result in economic benefit for many of those who tried to exploit these great advances. For example, the cumulative earnings of all airlines since Wilber Wright flew that first plane are less than zero. (Airline losses have been greater than their profits.) Success comes to those who find businesses with great economics and not necessarily great inventions or advances to mankind.
  • Capable management. Look for people who you like and admire, have good ethical values, have complementary skills and are smarter than you. Plan to hire people who have the skills that you lack. Define your unique ability and seek out others who turn your weaknesses into strengths.
  • Solid financial control. You will learn later the importance of becoming qualified in accounting, computer software and cash flow management. Most entrepreneurs do not come from accounting backgrounds and must go back to school to learn these skills. Would you bet your savings in a game where you do not know how to keep score? People mistakenly do it in business all the time.
  • A consistent business focus. If you think of specific products or services you will find that specialists will outperform non-specialists. Zero in on something you can do so well that you will not be subject to competing with someone with a lower price.

Sources: https://www.dti.gov.ph/negosyo/start-and-grow-your-business/

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