Current

problems that
Filipino
Entrepreneurs
faced
 Principles,
Tools, and
Techniques in
Creating a
Business
In planning a business, a thorough study
needs to be made from the creation of
business. Understanding how the
business will operate and co-exists in the
business world thus one needs to study
principle, tools and techniques in
creating business
Principles in
Creating a
Business
The principles of a business are the driving forces
that make it successful. Below the ten key principles
to make a business a success:
1. Scalability- A business must be scalable for it to be
successful. Scalability is the capability of a company
to sustain or improve its performance in terms of
profitability or efficiency when its sales volume
increases.
2. Big Ideas- A business is no more effective than the
idea upon which it is built. Business creates its own
plan to expand its economic growth.
3. Systems- A business is a system in which all
parts contribute to the success or failure of the
whole. In this system, everything must work
together from employee to president; from
equipment to resources.
4. Sustainability- A business must be dynamic-
able to thrive through all economic conditions, in
all markets, providing meaningful highly
differentiated results to all of its customers. Such
differentiation is the key to survival.
5.Growth- Growth is essential in business. Without
continued growth, operations will stagnate. This
can result in lowered standards of quality for
products or services, decreased customer service,
and poor employee morale.
6. Vision- A business must manifest the higher
purpose upon which it was seeded, the vision it
was meant to exemplify, the mission it was
intended to fulfil.
7. Purpose- A business is the fruit of a Higher Aim
in the mind of the person who conceived it.
8. Autonomy- A business is not part of the
owner's life, but is, in fact, its own entity.
9. Profitability- A business is an economic
entity, driving an economic reality, creating
an economic certainty for the communities in
which it thrives.
10. Standard- A business creates a standard
against which all businesses are
 Tools in
Evaluating a
Business
It's the Holy Grail for small business
owners – finding ways to make
efficiency savings in all aspects of their
operations. The good news is there are
plenty of tools, tips and techniques
available to help them make cost
savings and boost productivity. Here are
10 of them.
1. Use technology to speed up workflow-
Businesses should be looking to innovations in
technology to solve day-to-day inconveniences
and to increasee efficiency.
2. Shorter meetings fuel efficiency- Hold a brief
meeting standing up, every morning, where
each person explains what they are going to
work on that day to ensure everyone is on the
right track and not wasting time on non-urgent
tasks.
3. Smart office space pays- Office space can
involve a big outlay for SMEs, but it is also an area
where some smarter thinking can make a real
difference.
4. Advertisement- Advertising keeps your
business top of mind so consumers think of it
when they require or need a service or product.
5. Small changes, big savings--One way of
improving efficiency is for business owners to
make small changes to the way they handle their
company's expenses.
6. Keep a firm grip on cash flow-"Cash is King not
profit”. Ensure the right management of your inflow
and outflow of cash.
7. Stay connected on the move- The growing trend
towards mobile and flexible working means that
employees are permanently connected and on the go.
8. Use time more efficiently-Being more efficient is
more about being than doing. It's probably 90%
mindset, (Allan, 2013). In addition, “The shorter the
amount of time you allow yourself, the more you will
get done”.
9. Get the best deal on insurance- Businesses
need insurance because it helps cover the
costs associated with property damage and
liability claims.
10. Don't be lax with the legal
In the hectic process of starting up a business,
the founders often put off sorting out the legal
matters until later, or not at all.
Since business is a commercial activity
and its main purpose is profit, in the book
published by the Development Academy
of the Philippines, how to prepare project
feasibility studies, it includes an industry
analysis of the following important
factors.
COMPETITION AND COMPETITORS
Industry rivalry among companies of the
same or related industry is an inevitable
part of the business world of any
business size.Intense competition leads
to reduced profit potential for companies
in the same industry. Businesses seek
constantly competitive advantage.
Competitive Advantage
 is what sets your business apart from
your competition.
 highlights the benefits a customer
receives when they do business with you.
 It could be your products, service,
reputation, or even your location.
Different methods of competitive advantage which it
can be done and are classified into four categories:
1.Cost Leadership-an advantage occurs when
business is able to offers same products at a lower
price.
2.Differentiation-Find attributes that is important and
set them apart from their competitors.
3.Defensive Strategies-used a defensive strategy to
distance themselves from competitors.
4.Alliances-advantage of seeking strategic alliance
with other within related or within businesses.
CUSTOMERS
Individuals or companies who desires to
possess or make use of products and
services. They play a huge role in the success
of your business. Customers likewise can
force down prices, demand higher quality or
more service, and play competitors off
against each other—all at the expense of
industry profits.
SUPPLIERS
Provide inputs that the firms in an industry need to create
the goods and services that they in turn sell to their
buyers.Suppliers can exert bargaining power on
participants in an industry by raising prices or reducing
the quality of purchased goods and services.
A business may need one or more suppliers. It is
important to develop suppliers who are reliable in terms
of quality of what they supply and their dependability in
coming up with the things you order from them. It is
important to maintain good relationships with one’s
suppliers
SUBSTITUTES
 Goods/services that can be used in place for
another. These goods may, even if partly,
satisfy the same needs of a consumer such
that the consumer may use one for instead
for another.
 substitute products or services limit the
potential of an industry.
 margarine can be a substitute for butter.
Likewise Coke for Pepsi
 But not everybody will be willing to switch
brands because they have developed a taste
for a particular cola. This is why
manufacturers try to differentiate their
products from their competitors so that the
customers will develop product loyalty from
their brand.