3. Partner – Perez Go Cimafranca Avanzado &
Associates
Vice-president – Thrustpoint Consulting, Inc.
Partner – Maverick Ideas
Areas of Specialty: Corporate Law & Information Technology,
Business Development and Organizational Structuring
4. But he did not understand the
price. Mortals never do.
But the price of getting what
you want is getting what you
once wanted.
- Neil Gaiman
5. Why???
Separate source of income
Be your own boss
Fulfill your dreams and your purpose
Save the world
Rule the world
6. Why not??
Risks – It could fail
No stability
Waiting game
7. When?
When the timing is right.
When you have enough capital
When you have enough time
When you have the right team
When you have the right attitude
Determination
Patience
Appetite for risk
8. He who knows when he can
fight and when he cannot, will
be victorious
-Sun Tzu
9. KNOW THE TERRAIN
KNOW YOURSELF
KNOW THE ENEMY
10. Know the TERRAIN:
Who is your market?
What does the market want?
What does the market need?
Existing technology
New technology
11. Know the TERRAIN:
Will the market buy your idea?
Is your idea being supplied by existing products?
If yes, is their product good? Will they have product
loyalty? Can you fill a need or want that they can’t?
Does the government provide incentives / restrictions?
12. Android was founded on 2003 by Andy Rubin,
Rich Miner, Nick Sears and Chris White
It was acquired by Google on 2005
Patent applications were filed on 2007
“Believe it or not, there were quite a few hardware
devices that ran Google Android, even before the
new T-Mobile G1. At the Mobile World
Conference, held in February 2008,at least three
cell phone prototypes were running simple
Android applications. At the Google IO
conference in May, a cellphone with a touch
screen, Qualcomm processor, 256 MB of flash,
and 128 MB of RAM was unveiled.”
14. Know YOURSELF
◦ Funds
Personal savings
Loan from friends and family
Loan from the bank and from microfinance
Sell existing assets
Investment from other people
15. Know YOURSELF
◦ Equipment & Technology
How many developers / staff?
Can I get by on good enough or should I have the best?
Licensed, Freeware, or Pirate Bay?
Am I in the graphics & design industry?
What can I get for free?
LIST IT ALL DOWN
17. Know YOURSELF
◦ Product and Services
Product or Service or Both?
Canned product or SAAS or hybrid?
How will my product make life easier for my client?
Pricing
Support
18. Know your “E N E M Y”
◦ Who is the competition? Who are they
serving? What are their products?
Case Study: Google vs. Apple vs. Microsoft
◦ Goals: What do I want to achieve with my
business?
Self-fulfillment goals
Professional goals
Monetary goals
19. In other words, make a FEASIBILITY STUDY
◦ Qualitative – Example: SWOT Analysis
◦ Quantitative –
Investment Costs, ROI
Projected Financial Statements
Project for the next 3 years
20. Management of many is the
same as management of few.
It is a matter of organization.
- Sun Tzu
21. What entity to use?
◦ Single proprietorship
◦ Partnership
◦ Corporation
22. Sole proprietorship
◦ Only one person owns the business
◦ No separate juridical entity
◦ Register with the DTI for formal recognition
◦ Income Tax Rate: 10 to 30%
23. Partnership
◦ At least 2 people
◦ No separate juridical entity
◦ Register with SEC for formal recognition
◦ Income tax rate: 30%
24. Corporation
◦ At least 5 people
◦ Separate juridical entity
Obligations of the company are not obligations of the
stockholders
◦ Register with SEC for formal recognition
◦ Income tax rate: 30%
25. Should I have partners?
◦ Are you a team player? Are you a dictator?
Should I have investors?
◦ Can you raise the capital on your own?
◦ Can you afford to pay back the capital?
Should I have a foreign partner / investor?
What is his involvement? Funds, industry, or both?
How much can he put in?
Do I trust him? Does he trust me?
Safeguards
26. 3 Main Functions of Businesses
◦ Operations / Production (Workhorse)
◦ Sales & Marketing (Rainmaker)
◦ Administration (Bean-counter)
Human Resource
Accounting
Treasury
Custodian & Maintenance
28. "It is difficult to realize the
true Way just through sword-
fencing. Know the smallest
things and the biggest things,
the shallowest things and the
deepest things."
- Musashi Miyamoto
30. Must have enough funds to last you 6 months
to 1 year even without income.
Give yourself a salary, enough to meet your
monthly living expenses
Always invest back into the company for its
long term expansion
Give yourself a bonus.
Company savings / rainy day fund
31. Tax-planning
◦ VAT or percentage tax?
◦ Income tax or special rates?
◦ Export?
◦ Special Benefits (BOI, PEZA, RHQ / ROHQ)
33. "When you decide to attack,
keep calm and dash in quickly,
forestalling the enemy...attack
with a feeling of constantly
crushing the enemy, from first
to last."
-Musashi Miyamoto
34. Base of operations / Principal Office
Find out the requirements:
DTI / SEC
Name reservation
Articles of Partnership / Articles of Incorporation + By-
laws
BIR
Registration Fees (TIN)
Documentary Stamp Tax
Local government
Business permit
35. Employee benefits
SSS
Philhealth
HDMF / Pag-ibig
Bank
Treasurer-in-trust account
For businesses with special licenses
BOI
PEZA
TESDA
Etc.
36. Draft your Articles and prepare your requirements
Reserve your business name
◦ www.sec.gov.ph
◦ www.dti.gov.ph
Deposit the “show-money” with your bank
Do not put all your money in, paralyzing operations
Finalize your Articles and clean up your
presentation
Submit with the SEC / DTI
37. Follow-up
After Certificate is released:
Release of bank funds
Get TIN from the BIR & register your books of account
Get business permit
Register with SSS, Philhealth, & Pag-Ibig
Print official receipt
Alien employment permit, if you have foreigner
employees / partners
Find out the periodic compliances – set deadlines and
schedules
38. All men dream: but not equally.
Those who dream by night in the
dusty recesses of their minds
wake up in the day to find it was
vanity, but the dreamers of the
day are dangerous men, for they
may act their dreams with open
eyes, to make it possible."
-T.E. Lawrence
39. Unit 5 Merjen Bldg., Gun-ob,
Lapulapu City, Cebu
Telefax No. (6332) 340-4689
jan.perez@pgcalaw.ph
Unit F Ground Floor, W Tower
39th Street North, Bonifacio Triangle
Bonifacio Global City
1634 Taguig, Philippines
Telefax: +6325001308