OCENA, JERCY JOY T. - YES.

BSE-2B

3 BUSINESS IDEAS:

ONLINE SELLING
Personal Considerations:

1. Is this idea something I really want to

work at?
8. Do I want to work with the people who
- YES. may be associated with this idea?
2. Do I have enough money? - YES.
- Honestly speaking, I have no enough 9. Is this idea more important to me than any
money yet but I can start online selling with a
small amount of investment. others that I am considering?

3. Can I handle the risk of failure? Loss of - YES.

personal assets? The risk of damage to my
community position and ego? 10. Do I have enough time to work on this
idea?
- YES.
- YES.
4. Would I sacrifice important aspects of my
lifestyle to turn this idea into a successful 11. Do I want to live the lifestyle required by
business? this idea?

- Yes, if sacrificing important aspects of my - YES.

lifestyle is one of the key for the success of my 12. Does the required work match the types of
business, I am willing to do it. activities I like?
5. Is the work something I can get excited - YES.
about?
13. Do I have the health and energy to operate
- YES. this business?
6. Is the idea legal and ethical? - YES.
- YES. 14. Does my personality suit this type of
7. Will the idea reflect favourably upon my business?
reputation? - YES.
15. What knowledge, skills or experience do I
have that would suit the work required to carry
out this idea?
- The knowledge, skills or experience that I
have includes: being optimistic in every difficult
times, being organized, competitive, and good
communication skills.
16. Do I have adequate knowledge of this
industry, including information on competitors,
potential clients, markets and current
technology?
- YES.
17. Do I have adequate technical, managerial,
marketing and financial skills to operate this
business? If not, can I learn them or employ
someone with those skills?
- I can learn those adequate skills for me to
effectively manage my own business.
Market Considerations:
1. What is my target market?
• Who are my potential customers?
• Where are they?
• What are their demographiccharacteristics (age,
income, marital status, number of children, type of
housing, etc.)?
- My potential customers are those people
who are fun of doing online shopping, they can
be at home or at work, there are no age gap, with
an average income, and no specific marital
status as long as they are into online shopping.
2. Have I asked potential customers whether
they would buy my product or service?
- I've not yet done doing that activity.
3. Have I surveyed my potential customers
for their opinions of my planned prices,
volumes, packaging, promotion strategies and
distribution methods?
- I haven't yet done any surveys.
4. What patterns of buying behaviour are
important for this product or service?
• When do people buy?
• How do they buy similar products or services?
• What is the typical size of orders?
• Who makes the decision to buy?
• How much effort is needed to persuade the buyer?
- People buy depending on their needs or if
the product got their attention. They buy similar
products or services if they have similar needs.
The customers has the right to decide on the
typical size of products such as bundle or
individual orders. In order to pursade the buyer,
I have to put so much effort and to be expert in
sales talking.
5. How many orders or contracts can I have in
hand before I start the business?
• Where will I find my first customerorders?
- Since I'm selling my products online, I'm
not yet sure if who are my first buyers, I will just
post my on hand products online and post other
products for pre-orders.
6. What does a detailed analysis of the
competition illustrate?
• If a client does not buy my product or service,
what alternative would be purchased?
• Who are the main suppliers of those alternate
products?
• What trends regarding those alternative products
are evident in the marketplace?
• How does each competitor fit into themarket, in
terms of market share, types of products or services
offered, marketing strategies and profitability?
- If client might not purchased my products,
I will continue to look for more buyers or
customer, or potential retailers, and change my
marketing strategy such as selling new products
from the prior one. The alternative suppliers are
those who have my needed products to offers for
customers.
7. Sales probably will be at the expense of
competitors. How will they react to my inroads?
- They might change their marketing
strategy or initiate my ideas.
8. What competitive advantage does my idea
have over those of my closest competitor?
- I guess the competitive advantage does
my idea have is I can easily reach out to my
customers online and easy way of negotiating
with them.
9. How can I protect myself from the
competition?
• Can I have a lower price? A higherprice? Lower
quality? Higher quality?
- I can protect myself from other
competitors by making my products affordable
with better quality.
10. Will others quickly copy my idea?
- Maybe, because online selling is very
popular currently. It's up to me on how will I
engaged with my customers and how will I
make strategy to cope up with my business.
11. How much of a head start do I have over
my competitors for this idea?
12. Who will sell my product or service?
• For how much?
• What sales tools will they need?
• What training will they need?
- Since I'm a starter, I won't yet need a lot
of people who will need to be trained, one
people will be enough as my business partner.
13. How will my product or service be
promoted?
• What forms of advertising will I use?
• Can I handle promotion and advertising myself or
will I hire someone else to do it?
• How much money will I spend onpromotion and
advertising?
• How much money is the competition spending and
where?
- Well, since I'm an online seller,
technically I'm going to promote my products
online. I can post my products in facebook or
provide a group chat with my potential buyers
where we can collaborate with each other. I can
also use printing materials such as flyers to
inform others about my business. I will be
efficient in promoting my products since I don't
have a physical store, however, I'll manage my
expenses with promotion and make it lesser as
possible.
14. What does a detailed analysis of distribution
illustrate?
- When selling online products, It is my
advantage to take the opportunity to reach my
customers through different areas since social
networks reach thousands of potential
customers, in that case, I have to negotiate with
them online about shipping methods such as its
cost or proceed to meet ups for lesser amount of
expenses in terms of shipping.
Production Considerations:
1. Can I produce or deliver the service?
 - YES.
2. How have I assured myself that the
product or service will really work?
- If a lot of customers will keep on asking
for my products, it is one of my assurance that
my business idea will work.
3. Can I find facilities to use?
- YES.
4. How much development work is needed
before units can be produced or service
delivered?
- In online business, you have to always
check your products quality specially that your
buyers can't check it personally since they can
only seen it online. On the other, effective
delivery services is also important to gain good
feedbacks from customers.
5. What legalities need to be checked
(patents, zoning laws, etc.)?
- Since I randomly sell different products
online such as personal needs, I have to issue a
permit as a licensed seller to gain the trust of
customers. Also, I also need to check if my
products are not fakes or had under legal
inspections.
6. How may units can I produce or how many
customers can I serve in the first year?
- It depends on how many customers will
order in a year. It doesn't have specific
calculations.
7. Can I find materials at a reasonable price?
- YES.
8. Can I find good production staff?
- YES.
9. What equipment will be needed?
• Where can the equipment be bought orrented?
• What servicing and maintenance will the
equipment require?
• What are the delivery times for equipment and
materials?
- I can bought equipment from suppliers
which include the product itself or the material
used in production, I can also provide my own
products from used materials.
10. Can I assemble a management team to
develop the opportunity?
• What management and technical skillsare needed?
• What skills are already available?
• What skills are still needed?
• Does this group have the personal contacts that
will be needed?
- In my case, I guess I don't need yet to
assemble a management team since I'm just
going to manage a small business and I can
manage it on my own, however, I'm open for
someone who can be my business partner or
retailers who can help me grow my small
business idea.
Financial Considerations:
1. What revenue can I achieve from the sale
of my product or service? (To determine this,
multiply the actual prices you will receive for
products or services by the estimated number of
sales, based on the interest expressed by
potential customers.)
2. Are my prices in line with the
competition?
• If not, why not?
• How will my customers react to the price, based
on their perceptions of the quality of the product?
(Ask your potential retailers and/or distributors.)
- My prices are in line with the
competition. On the other hand, customers will
not going to doubt in buying my products
because the price of it will depend on the quality
of products.
3. Are my profit margins in line with the
industry standards?
• If not, why not?
• How will my customers react to theirown
margins? (A retailer marks your product up. Is the
margin sufficient to generate the required gross
profit, given the volume projections? Ask them.)
• What margin does the distributorrequire?
4. What will be the cost of goods for the
products I produce and/or distribute?
5. How will the gross profit compare to other
firms in the industry?
6. What will be the start-up costs for my 1.
business? (Consider fixtures, equipment
inventory, legal fees, licences, advertising,
promotion, staff recruitment, etc.)
- In Online Selling, I have to purchase
materials used in promoting my products such as
ring light to use in live selling, cellphone, the
products to sold, the license to operate the
business, and vehicle to use in delivering the
orders. The start-up costs would be around
5,000-6,000php.
7. What will be the operating costs for my
business? (Consider salaries, rent, supplies,
interest, office expenses, etc.)
- My operating cost will be around 5,000-
6,000 for the utility expenses, supplies, and
other additional expenses.
8. How will the net profit level compare to
those of other firms in the industry?
• What are the causes of my higher or lower profit
levels?
- In terms of increasing the profit, there
should be high in demand of products. If the
sales are getting lower, the profit will also
decrease.
9. Can I obtain the financing required for this
idea?
• Where can I get the money? (Usually from
personal savings first, then from family and friends,
then from banks.)
• What terms can be negotiated with the bank?
• What collateral can I pledge to secure aloan if
necessary?
• How will the bank loan be repaid if the business
fails?
• What credit can be obtained for materials and
supplies?
- To start this small business idea, I can
borrow a small amount of money from my
parents, relatives, and friends.
10. Can I survive financially during the early
phases of the business?
• How much money will I need to drawout for
personal expenses? (Include this amount in your cash
flow projections.)
- Since I'm just new to manage a business,
it's normal to face financial problems specially
when I don't have enough knowledge to run
properly my business and how will I increase
my sales.
11. Is the level of financial risk low, average
or high?
• How much money will be lost if the business - YES.
fails?
6. Is the idea legal and ethical?
- The level of financial risk will be high
since my business is new to customers, they - Yes if I present legal license and other
can't trust me at first but I will do some legal documents in my store.
marketing strategy to encourage them to
7. Will the idea reflect favourably upon my
purchased my products. The estimated lost of
reputation?
money will be around 4,000-5,000 if and only if
there will be low in sales. - YES.

12. How can the idea be tested with little or no 8. Do I want to work with the people who
investment up front? may be associated with this idea?

- By asking my potential customers, I can - YES.

test if my business idea will work and if I can
gain income from it. I can also make a survey of 9. Is this idea more important to me than any
what products are usually found in social media others that I am considering?
as well as the rate of demands in online selling.
- Kind of.

10. Do I have enough time to work on this

idea?
COFFEE/MILKTEA SHOP
- YES.
Personal Considerations:
11. Do I want to live the lifestyle required by
1. Is this idea something I really want to work
this idea?
at?
- YES.
- YES.
12. Does the required work match the types of
2. Do I have enough money?
activities I like?
- Honestly speaking, I don't have yet.
- YES.
3. Can I handle the risk of failure? Loss of
13. Do I have the health and energy to operate
personal assets? The risk of damage to my
this business?
community position and ego?
- YES.
- YES.
14. Does my personality suit this type of
4. Would I sacrifice important aspects of my
business?
lifestyle to turn this idea into a successful
business? - YES.
- YES. 15. What knowledge, skills or experience do I
have that would suit the work required to carry
5. Is the work something I can get excited
out this idea?
about?
 - The knowledge, skills or experience that I
have include: being optimistic in every difficult
times, being organized, competitive, and good
communication skills.
15. Do I have adequate knowledge of this
industry, including information on competitors,
potential clients, markets and current
technology?
- YES.
17. Do I have adequate technical, managerial,
marketing and financial skills to operate this
business? If not, can I learn them or employ
someone with those skills?
- I have limited learnings but I can further
learn those adequate skills for me to effectively
run my own business.
Market Considerations:
1. What is my target market?
• Who are my potential customers?
• Where are they?
• What are their demographiccharacteristics (age,
income, marital status, number of children, type of
housing, etc.)?
- My potential customers are mostly
teenagers, office workers, near my store
location, and with average income.
2. Have I asked potential customers whether
they would buy my product or service?
- I haven't yet done asking my potential
customers but surely they will.
3. Have I surveyed my potential customers
for their opinions of my planned prices,
volumes, packaging, promotion strategies and
distribution methods?
- I haven't yet done any surveys.
4. What patterns of buying behaviour are
important for this product or service?
• When do people buy?-
• How do they buy similar products or services? -
• What is the typical size of orders?-
• Who makes the decision to buy?-
• How much effort is needed to persuade the buyer?
- Since I'm selling coffee and milktea
products, customers will order dependent to the
weather condition. If it's rainy, customers will
order coffees. When it's too hot, customers will
choose to have cold milktea. The size of orders
will depend either small, medium, and large. In
order to pursue customers to buy, I will have to
fully make an effort to entertain them to visit my
store such as offering buy one take one products
and freebies such as keychains or customize
cups.
5. How many orders or contracts can I have in
hand before I start the business?
• Where will I find my first customerorders?
- Since I'm selling coffee and Milktea
products, I will be dependent to my customers if
how many products I may sold.
6. What does a detailed analysis of the
competition illustrate?
• If a client does not buy my product or service,
what alternative would be purchased?
• Who are the main suppliers of those alternate
products?
• What trends regarding those alternative products
are evident in the marketplace?
• How does each competitor fit into the market, in
terms of market share, types of products or services
offered, marketing strategies and profitability?
 - If customers might not purchased my
products, I will add entertainment in my
physical store such as band performances to
entertain customers to visit my store. Regarding
with my competitors, I will use their presence as
my motivation to continue to grow as an
entrepreneur and I'll also be more competitive in
terms of pricing strategy and how to market my
products.
7. Sales probably will be at the expense of
competitors. How will they react to my inroads?
- They might change their marketing
strategy or initiate my ideas.
8. What competitive advantage does my idea
have over those of my closest competitor?
- I guess my advantage behind my
competitors is that my products are affordable
and in line with the current trends specially that
most of my potential customers are young and
teenagers.
9. How can I protect myself from the
competition?
• Can I have a lower price? A higherprice? Lower
quality? Higher quality?
- I can protect myself from other
competitors by making my products affordable,
consistent and perfect presentation of products
including how it taste since I'm selling liquid
products, and the comfortable location of my
business.
10. Will others quickly copy my idea?
- Yes, since coffee and milktea shop are
popular and more easier to establish kind of
business.
11. How much of a head start do I have over
my competitors for this idea?
12. Who will sell my product or service?
• For how much?
• What sales tools will they need?
• What training will they need?
- Since I will just about to establish my
business, I only need 5-8 staffs that will help me
to manage my business. I will hire those with
experience in managing such business since I
need to ask their ideas in terms of marketing my
products.
13. How will my product or service be
promoted?
• What forms of advertising will I use?
• Can I handle promotion and advertising myself or
will I hire someone else to do it?
• How much money will I spend onpromotion and
advertising?
• How much money is the competition spending and
where?
- I will promote my products online if they
can't visit my store, I can also offer delivery
services to be more convenient for customers. I
can also provide flyers to distribute in promoting
my products or make advertisements in
facebook or instagram.
14. What does a detailed analysis of distribution
illustrate?
- It illustrates how will I market my
products such as what kind of promotion
strategy and what are the effective methods I
will follow to reach my goal sales.
Production Considerations:
1. Can I produce or deliver the service?
- YES.
2. How have I assured myself that the
product or service will really work?
 - Because my business idea is in line with
trends and is easy to manage.
3. Can I find facilities to use?
- YES.
4. How much development work is needed
before units can be produced or service
delivered?
- I need full effort in terms of producing my
products and the effectiveness of delivering the
goods to customers.
5. What legalities need to be checked (patents,
zoning laws, etc.)?
- Since I'm selling food beverages, I have to
present a license as permitted to start this
business.
6. How may units can I produce or how many
customers can I serve in the first year?
- It depends on how many customers will
order in a year. It doesn't have specific
calculations.
7. Can I find materials at a reasonable price?
- YES.
8. Can I find good production staff?
- YES.
9. What equipment will be needed?
• Where can the equipment be bought orrented?
• What servicing and maintenance will the
equipment require?
• What are the delivery times for equipment and
materials?
- I will be needed to purchase a coffee
machine and other needed tools and equipment
in producing my products. It also be checked if
in good quality and should be cleaned every
after it is used.
10. Can I assemble a management team to
develop the opportunity?
• What management and technical skillsare needed?
• What skills are already available?
• What skills are still needed?
• Does this group have the personal contacts that
will be needed?
- Since I'm just going to start a small
business, I only need a small team who will help
me manage my business. I need people who has
experience regarding with my business and
those who has potential skills in effectively
produce my desired products.
Financial Considerations:
1. What revenue can I achieve from the sale
of my product or service? (To determine this,
multiply the actual prices you will receive for
products or services by the estimated number of
sales, based on the interest expressed by
potential customers.)
2. Are my prices in line with the
competition?
• If not, why not?
• How will my customers react to the price, based
on their perceptions of the quality of the product?
(Ask your potential retailers and/or distributors.)
- My prices are in line with the
competition. On the other hand, customers will
not going to doubt in buying my products
because it's affordable and worth it.
3. Are my profit margins in line with the
industry standards?
• If not, why not?
• How will my customers react to theirown
margins? (A retailer marks your product up. Is the
margin sufficient to generate the required gross
profit, given the volume projections? Ask them.)
• What margin does the distributor require?
4. What will be the cost of goods for the
products I produce and/or distribute?
5. How will the gross profit compare to other
firms in the industry?
6. What will be the start-up costs for my 1.
business? (Consider fixtures, equipment
inventory, legal fees, licences, advertising,
promotion, staff recruitment, etc.)
- To start with this kind of business idea, I
have to present a license to operate the business,
purchased machines, tools, and materials used in
making coffee and milktea, and vehicle to use in
delivering the orders. Probably, the start-up
costs will be around 8,000-12,000 including the
other expenses.
7. What will be the operating costs for my
business? (Consider salaries, rent, supplies,
interest, office expenses, etc.)
- My operating cost will be around 8,000-
12,000 for the utility expenses, supplies, and
other additional expenses.
8. How will the net profit level compare to
those of other firms in the industry?
• What are the causes of my higher or lower profit
levels?
- In terms of increasing the profit, there
must be high in demand of products. If the sales
are getting lower, the profit will also decrease.
9. Can I obtain the financing required for this
idea?
• Where can I get the money? (Usually from
personal savings first, then from family and friends,
then from banks.)
• What terms can be negotiated with the bank?
• What collateral can I pledge to secure a loan if
necessary?
• How will the bank loan be repaid if the business
fails?
• What credit can be obtained for materials and
supplies?
- To start this small business idea, I can
borrow a small amount of money from my
parents, relatives, and friends. I can also borrow
from the banks if the beginning investment is
still not enough. I can't have collaterals since I'm
just a simple entrepreneur with no big assets at
all but, I will surely pay for my loan either my
business will grow or fail.
10. Can I survive financially during the early
phases of the business?
• How much money will I need to drawout for
personal expenses? (Include this amount in your cash
flow projections.)
- Since I'm just a beginner in this kind of
business idea, it's normal to face financial
problems specially when I don't have enough
knowledge to run properly my business and how
will I increase my sales. In that case, I am not
sure if I survive financially during the early
phase since I don't know yet idea of what might
be the outcome of my business.
11. Is the level of financial risk low, average
or high?
• How much money will be lost if the business fails?
- The level of financial risk will be high
since my business is new to customers, they
can't trust me at first but I will do some
marketing strategy to encourage them to
purchased my products. The estimated lost of
money will be around 6,000-9,000 if the
products will not be approved by the taste of
customers.
12. How can the idea be tested with little or no
investment up front?
- Yes if I present legal license and other
legal documents in my store.
7. Will the idea reflect favourably upon my
reputation?
- YES.

- By asking my potential customers, I can
test if my business idea will work and if I can
gain income from it. I can also make a survey of
what are the most popular flavor that liked by
many customers. I can also do some research of
what are the other ideas I can apply to
successfully run my business idea.
8. Do I want to work with the people who
may be associated with this idea?
- YES.
9. Is this idea more important to me than any
others that I am considering?
- Kind of.

10. Do I have enough time to work on this

CAKE BAKER/DESIGNER idea?

Personal Considerations: - YES.

1. Is this idea something I really want to work 11. Do I want to live the lifestyle required by
at? this idea?

- YES. - YES.

2. Do I have enough money? 12. Does the required work match the types of
activities I like?
- Honestly speaking, I don't have yet.
- YES.
3. Can I handle the risk of failure? Loss of
personal assets? The risk of damage to my 13. Do I have the health and energy to operate
community position and ego? this business?

- YES. - YES.

4. Would I sacrifice important aspects of my
lifestyle to turn this idea into a successful
business?
- YES.
5. Is the work something I can get excited
about?
14. Does my personality suit this type of
business?
- YES.
15. What knowledge, skills or experience do I
have that would suit the work required to carry
out this idea?

- YES. - The knowledge, skills or experience that I

have include: being optimistic in every difficult
6. Is the idea legal and ethical?
times, being organized, competitive, cooking
skills, and good communication skills.
15. Do I have adequate knowledge of this
industry, including information on competitors,
potential clients, markets and current
technology?
- YES.
17. Do I have adequate technical, managerial,
marketing and financial skills to operate this
business? If not, can I learn them or employ
someone with those skills?
- I'm willing to learn those adequate skills
for me to confidently handle the operation of my
own business.
Market Considerations:
1. What is my target market?
• Who are my potential customers?
• Where are they?
• What are their demographiccharacteristics (age,
income, marital status, number of children, type of
housing, etc.)?
- My potential customers are event
organizers, no age gap, near my store location,
and with an average income. Those who have
events such as birthday parties, wedding,
christening, etc.
2. Have I asked potential customers whether
they would buy my product or service?
- I haven't yet done asking my potential
customers but surely they will.
3. Have I surveyed my potential customers
for their opinions of my planned prices,
volumes, packaging, promotion strategies and
distribution methods?
- I haven't yet done any surveys.
4. What patterns of buying behaviour are
important for this product or service?
• When do people buy?-
• How do they buy similar products or services? -
• What is the typical size of orders?-
• Who makes the decision to buy?-
• How much effort is needed to persuade the buyer?
- This kind of business idea is occasionally
since I will only have customers if there's events
or any celebrations. Customers have the choice
to decide either what flavor of cake they want,
how many layers or the size of cake, and what is
the theme they want for decorating the cake. In
order to pursue customers to buy, I can offer free
6 pieces cupcakes for every two cake orders and
other freebies.
5. How many orders or contracts can I have in
hand before I start the business?
• Where will I find my first customerorders?
- The count of orders will be depending
upon how many customers will order. I have to
accept orders first before I proceed to the baking
and designing. On the other hand, I can find my
first customer orders online or anyone who will
visit my place.
6. What does a detailed analysis of the
competition illustrate?
• If a client does not buy my product or service,
what alternative would be purchased?
• Who are the main suppliers of those alternate
products?
• What trends regarding those alternative products
are evident in the marketplace?
• How does each competitor fit into the market, in
terms of market share, types of products or services
offered, marketing strategies and profitability?
 - If customers might not purchased my
products, I will think of some strategy to help
me access for more customers such as
promoting my products at any online platforms.
Regarding with my competitors, I will use their
presence as my motivation to continue to grow
as an entrepreneur and I'll also be more
competitive in terms of pricing strategy and how
to market my products.
7. Sales probably will be at the expense of
competitors. How will they react to my inroads?
- They might change their marketing
strategy or initiate my ideas.
8. What competitive advantage does my idea
have over those of my closest competitor?
- I guess my advantage behind my
competitors will be my affordable products and
services.
9. How can I protect myself from the
competition?
• Can I have a lower price? A higherprice? Lower
quality? Higher quality?
- I can protect myself from other
competitors by making my products affordable,
consistent and perfect presentation of cakes
including how it taste. Additionally, the
accuracy of delivering the goods.
10. Will others quickly copy my idea?
- Maybe, but not the way I'll present my
products.
11. How much of a head start do I have over
my competitors for this idea?
12. Who will sell my product or service?
• For how much?
• What sales tools will they need?
• What training will they need?
- Since I will just about to establish my
business, I don't have yet need many staffs or
workers but, I'm open for anyone who can be my
business partner.
13. How will my product or service be
promoted?
• What forms of advertising will I use?
• Can I handle promotion and advertising myself or
will I hire someone else to do it?
• How much money will I spend onpromotion and
advertising?
• How much money is the competition spending and
where?
- I will promote my products online if they
can't visit my place, I can also offer delivery
services to be more convenient for customers. I
can also provide flyers to distribute in promoting
my products or make advertisements in
facebook or promote it on tiktok by posting
videos on how I bake my products.
14. What does a detailed analysis of distribution
illustrate?
- It illustrates how will I market my
products such as what kind of promotion
strategy and what are the effective methods
should I follow to reach my goal sales.
Production Considerations:
1. Can I produce or deliver the service?
- YES.
2. How have I assured myself that the
product or service will really work?
- Because my business idea is needed in
every occasions and customers will always look
for my services at every events.
3. Can I find facilities to use?
- YES.
4. How much development work is needed
before units can be produced or service
delivered?
- I need full effort in terms of producing my
products and the effectiveness of delivering the
goods to customers.
5. What legalities need to be checked
(patents, zoning laws, etc.)?
- Since I'm selling cake desserts, I have to
present a license as permitted to start this
business.
6. How may units can I produce or how many
customers can I serve in the first year?
- It depends on how many customers will
order in a year. It doesn't have specific
calculations.
7. Can I find materials at a reasonable price?
- YES.
8. Can I find good production staff?
- YES.
9. What equipment will be needed?
• Where can the equipment be bought orrented?
• What servicing and maintenance will the
equipment require?
• What are the delivery times for equipment and
materials?
- I will be needed to purchase tools and
equipment in baking cakes including the
ingredients. I also need to purchase materials
used in designing cakes. Those tools and
materials used in baking should always sterilize
to maintain its cleanliness.
10. Can I assemble a management team to
develop the opportunity?
• What management and technical skillsare needed?
• What skills are already available?
• What skills are still needed?
• Does this group have the personal contacts that
will be needed?
- Since I'm just about to start a small
business, I don't need yet a team but I need
people who will help me in terms of delivering
my products such as assistance from my family
or relatives.
Financial Considerations:
1. What revenue can I achieve from the sale
of my product or service? (To determine this,
multiply the actual prices you will receive for
products or services by the estimated number of
sales, based on the interest expressed by
potential customers.)
2. Are my prices in line with the
competition?
• If not, why not?
• How will my customers react to the price, based
on their perceptions of the quality of the product?
(Ask your potential retailers and/or distributors.)
- Yes, my prices are in line with the
competition. On the other hand, customers will
not going to doubt in buying my products
because it's affordable and worth it.
3. Are my profit margins in line with the
industry standards?
• If not, why not?
• How will my customers react to theirown
margins? (A retailer marks your product up. Is the
margin sufficient to generate the required gross
profit, given the volume projections? Ask them.)
• What margin does the distributor require?
4. What will be the cost of goods for the
products I produce and/or distribute?
5. How will the gross profit compare to other
firms in the industry?
6. What will be the start-up costs for my
business? (Consider fixtures, equipment
inventory, legal fees, licences, advertising,
promotion, staff recruitment, etc.)
- To start with this kind of business idea, I
have to present a license to operate the business,
purchased machines, tools, and materials used in
baking cakes and designing it, a vehicle to use in
delivering the orders. Probably, the start-up
costs will be around 8,000-15,000 including the
other expenses.
7. What will be the operating costs for my
business? (Consider salaries, rent, supplies,
interest, office expenses, etc.)
- My operating cost will be around 10,000-
15,000 for the utility expenses, supplies, and
other additional expenses.
8. How will the net profit level compare to
those of other firms in the industry?
• What are the causes of my higher or lower profit
levels?
- In terms of increasing the profit, there
must be high in demand of products. If the sales
are getting lower, the profit will also decrease.
9. Can I obtain the financing required for this
idea?
• Where can I get the money? (Usually from
personal savings first, then from family and friends,
then from banks.)
• What terms can be negotiated with the bank?
• What collateral can I pledge to secure a loan if
necessary?
• How will the bank loan be repaid if the business
fails?
• What credit can be obtained for materials and
supplies?
- To start this small business idea, I can
borrow a small amount of money from my
parents, relatives, and friends. I can also borrow
from the banks if the beginning investment is
still not enough. I can't have collaterals since I'm
just a simple entrepreneur with no big assets at
all but, I will surely pay for my loan either my
business will grow or fail.
10. Can I survive financially during the early
phases of the business?
• How much money will I need to drawout for
personal expenses? (Include this amount in your cash
flow projections.)
- Since I'm just a beginner in this kind of
business idea, it's normal to face financial
problems specially when I don't have enough
knowledge to run properly my business and how
will I increase my sales. In that case, I am not
sure if I survive financially during the early
phase since I don't know yet idea of what might
be the outcome of my business.
11. Is the level of financial risk low, average
or high?
• How much money will be lost if the business fails?
- The level of financial risk will be high
since my business is new to customers, they
can't trust me at first but I will do some
marketing strategy to encourage them to
purchased my products. The estimated lost of
money will be around 6,000-8,000 if the
products will not be approved by the taste of
customers.
12. How can the idea be tested with little or
no investment up front?

- By asking my potential customers, I can

test if my business idea will work and if I can
gain income from it. I can also make a survey of
what are the most popular flavor that liked by
many customers or the designs that are unique
from the eyes of customers. I can also do some
research of what are the other ideas I can apply
to successfully run my business idea.