Organization Plan

Follows the marketing plan and the production plan .

Four functional areas

• Marketing process of getting potential clients or customers.

• Production the act or process of producing ,the creation of
utility ,the making goods available for use.
• Finance provide funding (a person or enterprise)or the
management of large amounts of money especially by
governments or large companies.
• Administration the process or activity of running a business,
organization etc.
Gantt Chart
• This where you present the pre operating activities .
Here are some examples of pre-operating
activities.

• The registration of the business

• The preparation of the business plan
• The negotiation for financing
• The construction of the building
• Preparation of the production location
• Hiring of personnel
• And so forth
Financial Plan

• Translates into monetary terms of the various plans you have for the
business.
From the marketing plan you get information on sales
From the production and organization plans you get information on expenses.
Among the financial schedules you are to present is
THE TOTAL PROJECT COST
MADE UP OF THE FOLLOWING ITEMS
Total fixed assets example building land and equipments
Working capital refers to the amount of funds you need to pay for expenses
Pre-operating expense registration fees paid to consultant
 Source of financing

• This where the funds for the business will come from.
• EQUITY CONTRIBUTION if the funds came from the owner or
the co owner
• It could be from relatives ,friends and bank
• Creditors person or institution that extends credit
Financial statements
Financial records that convey the business activities and financial performance of a company.

This Photo by Unknown Author is licensed under CC BY-SA

This Photo by Unknown Author is licensed under CC BY-SA-NC
 Financial analysis
• Consist of computations of profitability ,liquidity, marketability of the enterprise based on
the information from the profit and loss statement and the balance sheet.

• Social-Cost benefit analysis

it requires you to look at the benefits and the costs that will accrue to society.
• Organizing the Enterprise
• People they are the backbone of the organization
• Who are these people?
1.Proprietor or the owner he is the most important.
2.Managers and Supervisors
3.Worker
ORGANIZATION “WARM BODIES”
 Small business Enterprise is Manageable

• A manufacturing or service enterprise wherein the owner manager

is not actively involved in production.(According to STANLEY and
MORSE)
Two kinds of Small Business
Micro business
Bigger small business
CHARACTERISTICS OF SMALL BUSINESS
1.It is privately-owned
2.It has few or no layers of management
3.It has insufficient resources to dominate it field of business
 Magna Carta for Small Enterprises(RA 6977)

Small and medium enterprise as any business activity or enterprise engaged in industry, agribusiness or services
• Micro: less than 50,000
• Cottage :50,000 to 500,000
• Small :500,001 to 5M
• Medium:5M To 20M
Features of a Small Business Enterprise
• It is low capital, but high in labor intensity and has insufficient financial resources.
• It is efficient in specialized skill and service.
• They succeed in small isolated or in rural communities with few residents.
• Feasibility study is not required.
• They conduct their operation right inside the market, place closer to the buyer.
• The owner manager employs his wife and children.
• Capital is usually financed by the family through its own savings or loans.
• The area of the operation is small
• The size of enterprise is small in relation to the industry .
Choosing Your Own Role in the Business

THERE ARE FACTORS TO CONSIDER

1.Your education and training.
2.Your experience
3.Your interest or aplitude
4.Your time
5.The advantage of having a broad view.
 Choosing People to Work With You
• Recruit your workers from among family members or emmediate family
• Before taking them in ,lay down the ground rules.
PERFROMANCE
Guidelines how you determine your employee requirements:
1.List down all the different tasks that have to be done in the business
a.Marketing
b.Production
c.Finance
d.Administration
2.From the list of tasks cross out the tasks that you are taking for yourself.
Examples
Sales manager 1 Sewers 4 Driver/messenger 1
Sales assistant 2 Inspector 1
Cutter 0r designer Bookkeeper 1
CONTINUATION

3.Next for every position,list all the qualifications required in terms

of skills, education and training.
4.It is also advisable at this point to determine salaries and wages to
be paid for every position you have.
5.Once you have done 1-4 you can begin the process of
recruiting ,screening, and selecting the people to work with you in
your new business.