2. INTRODUCTION TO
ENTREPRENEURSHIP MODULE
CONTENTS
• Business and Entrepreneurship
• Business Idea
• Legal Processes
• Research and Planning
• Finances
METHOD
• Lecture
• Sharing
• Discussion
• Group Discussion and Presentation
3. INTRODUCTION TO BUSINESS AND
ENTREPRENEURSHIP
• What is entrepreneurship?
• Why is Entrepreneurship Important?
• Who are Entrepreneurs?
• Why should you venture into entrepreneurship?
9. FORBES TOP 10 RICHEST PEOPLE (MAR 2016)
No. Name
Net worth
(USD)
Age Nationality Source(s) of wealth
1 Bill Gates $75.0 billion 60 United States Microsoft
2 Amancio Ortega $67.0 billion 79 Spain Inditex
3 Warren Buffett $60.8 billion 85 United States Berkshire Hathaway
4 Carlos Slim $50.0 billion 76 Mexico
América
Móvil, Grupo Carso
5 Jeff Bezos $45.2 billion 53 United States Amazon.com
6 Mark Zuckerberg $44.6 billion 32 United States Facebook
7 Larry Ellison $43.6 billion 71 United States Oracle Corporation
8
Michael
Bloomberg
$40.0 billion 74 United States Bloomberg L.P.
9 Charles Koch $39.6 billion 80 United States Koch Industries
9 David Koch $39.6 billion 75 United States Koch Industries
15. ENTREPRENEURSHIP VS EMPLOYMENT
ENTREPRENEURSHIP
• You can create a Business
• You are your own Boss
• You set your own income
• You set your own time
• Your are responsible for the whole
business
• You may need to answer to customers
needs
EMPLOYMENT
• You have to find a Job
• You have a Boss
• Your Income is set
• You have to follow the set time
• You are only responsible for your job or
your department
• You need to answer to boss and job
requirements
37. LEGAL PROCESS
• Business Registrations
– Types
– Advantages and Disadvantages
– Applications Process
• Business Licenses
– Business License Exemption
– Business License Requirements
– Special Licenses
• Know how and where to apply for business registration and licenses for Business
39. LEGAL STRUCTURE
Sole-Proprietorship Partnership Company
Definition A business owned by one person A business firm/ organization of two or more business
partners
A business form which is a legal entity separate and distinct
from its shareholders and directors
Owned by One person Generally between 2 to 20 partners. A partnership of
more than 20 partners must incorporate
Private Company having 50 members
Public Company having more than 50 members
Legal Status • Not a separate legal entity
• Owner has unlimited liability
• Can sue or be sued in individual’s own
name
• Can also be sued in business names
• Owner personally liable for debts and
losses of business
• Not a separate legal entity
• Partners have unlimited liability
• Can sue or be sued in firm’s name
• Cannot own property in firm’s name
• Partner’s personally liable for partnership’s debts and
losses incurred by other partners
• A separate legal entity from its members and directors.
• Members have limited liability
• Can sue or be sued in company’s name
• Can own property in company’s name
• Members not personally liable for debts and losses of
company
•
Registration
requirement
• Age 18 years or above.
• Brunei Citizens and Permanent
Residents only.
• Undischarged bankrupt cannot
manage business without court or
Official Receivers’ Approval
• Age 18 years or above.
• Brunei Citizens and Permanent Residents only.
• Undischarged bankrupt cannot manage business
without court or Official Receivers’ Approval
• Age 18 years or above
• Minimum of 2 directors. (if 2, At least one of the
directors shall be Ordinarily Resident in Brunei
Darussalam)
• Undischarged bankrupt cannot manage business without
court or Official Receivers’ Approval
• At least two shareholders
Formalities and
expenses
Quick and easy to set up
Easy to administer and manage
Registration cost is minimal
Less administrative duties to adhere to
Quick and easy to set up
Easy to administer and manage
Registration cost is minimal
Less administrative duties to adhere to
More costly to set up and maintain
More formalities and formalities to comply with
Annual Returns must be filed as Statutory Requirement of
General Meetings, directors, share allotments, etc.
Set-up fee $35 ($5 for name application fee and
$30 for the registration fee)
$35 ($5 for name application fee and $30 for the
registration fee)
$315 ($5 for name reservation , $10 for extension of
reservation [if applicable] and $300 for the incorporation
fees)
Continuity of the
business entity
Exists as long as the owner is alive and
desires to continue the business
Exists subject to Partnership Agreement A company has perpetual succession until wound up or
struck off
Closing of the
business
By owner – Cessation of business By partners – Cessation of business or dissolution of
partnership
Winding up – Voluntarily by members, compulsorily by the
High Court
Striking Off
39
40. KNOW HOW AND WHERE TO APPLY FOR
BUSINESS REGISTRATION AND LICENSES
FOR BUSINESS
•WWW.BUSINESS.GOV.BN
•WWW.ROC.GOV.BN
42. DO NOT REQUIRE BUSINESS LICENSES
http://business.gov.bn/Shared%20Documents/pdf/Guidelines%20for%207%20types%20
of%20businesses.pdf
43. HEALTH AND BEAUTY LICENSE
1. Aerobik
2. Aromaterapi
3. Tukang gunting rambut
4. Melangsingkan badan
5. Kosmetik
6. Rawatan muka dan
badan
1. Gimnasium
2. Salun rambut
3. Merias kuku tangan dan kaki
4. Urut
5. Refleksologi
6. Spa, termasuk kolam air panas
atau sejuk
http://business.gov.bn/Health/Syarat%20dan%20Peraturan%20Mengendalikan%20Establ
ismen%20Kecantikan%20dan%20Kesihatan.pdf
44. SPECIAL LICENSES AND APPROVAL
– Ministry Of Home Affairs
• Concerts and competitions
– EIDPMO
• Exposition, Bazaar
– Ministry of Development
• construction activity
– Ministry of Culture Youth and Sports
• Child care centres
– Customs and Excise
• shipping
– Ministry of Primary Resources and tourism,
• Tourism, Tour Guides, Homestay
– AiTi
• info-communication
– Municipal board
• management of private car parks.
– Ministry of Finance
• Banks/Finance/Securities companies, Money Changer
/Remittance, Insurance, Auditors
– Department of Land Transport
• Car Importers
– Attorney General Chambers
• Legal Firm
– Ministry of Health
• private clinics
– Ministry of Education
• Schools, private education
46. PRODUCT AND MARKET RESEARCH
• Products and Services
– list down products and sales price
• Market Research
– Customers - Market Size and Segmentation
– Competition – indirect and direct
– Market and Industry – PEST analysis
– SWOT
47. PRODUCTS AND SERVICES
•List down products and sales price
•Calculate Sales Forecast (Day/week/month)
•Calculate the direct Costs
•Calculate gross profit per unit
48. MARKET RESEARCH
•Customers - Market Size and Segmentation
•Competition – indirect and direct
•Market and Industry – PEST analysis
–Political, Economical, Strength, Technology
•SWOT
–Strength, Weakness, Opportunities and
Strength
56. Print
• Business Cards
• Leaflets & Posters
• Letters and Mail
• Merchandise
Mass
Media
• Billboards
• Newspaper
• TV
• Radio
Electronic
• E-mail
• Social networks
• Websites
• Media sharing
networks
Personal
• Word of mouth
• Referrals
• Direct Selling
PROMOTION
AND
ADVERTISING
56
62. EXAMPLE:
ROLES AND RESPONSIBILITIES
Roles Responsibilities Qualific
ations
Salary
Manager Manages Operations and marketing, O level $800
Cook •Receives order
•Prepares Food from cooking (rice,
Chicken, sambal) to packaging
•Receives Cash
•Interacts with customers
Form 3 $300
Grill •Receives order
•Prepares Food from grilling to
packaging
•Receives Cash
Form 3 $300
62
63. EXERCISE EXAMPLE
Manager
Ali
$1,000
Sales and Marketing
Cik
$200+commission
Production
Edward
$500
Admin Clerk
Fatimah
$400
Assistant Manager
Bakar
$750
63
Monthly Total: $2,850
Yearly Total: $34,200
Total Annual TAP/SCP (8.5%): $2,907
Sum Total: $37,107
66. BUSINESS PROCESS FLOW –
PRODUCT
• Rice, Chicken,
Ingredients
• Drinks
• Packaging
Stocks
Purchase
• Nasi Katok
• Grill/Salai
• In Kitchen
Food
preparation • SMS
• Call
• Shop Front
Sales
66
Input Process Output
67. BUSINESS PROCESS FLOW –
SERVICES
• Marketing
• Reception
• Sales
Customer
• Booking
• Service
Provision
• Customer
Service
Services
• Termination
or Renewal
or next level
• Referrals and
testimonials
End of Service
67
Input Process Output
72. PROFIT AND LOSS FORECAST
• Calculates the amount of money going in (from sales) and out (from
operations cost)
• Factors
– Income from Sales of Goods or other items
– Expenses from
• Direct Cost of Goods Expenses ,
Controllable and Fixed Costs
– Calculate
• Gross Profit (Sales – Direct Cost) and Gross Margin
• Net Profit (=Sales – Direct Costs – Fixed Costs)
72
73. PROFIT AND LOSS
• Profit or Loss = Sales – Var. Cost – Fixed Cost
• Sales
• Variable Cost
– Stocks Purchase
• Fixed Costs
– Rental
– Salary
– Marketing
– Bills (water, electric, gas)
– Licenses
– Other Costs 73
74. BREAK-EVEN ANALYSIS
• What is the purpose?
– To see how many units need to be
sold to make money.
• What you need to know?
– Units Sold
– Sales per unit
– Cost per unit
– Fixed Costs
• Formula:
• Note:
– this is for a single product, for
multiple products you may use
average.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
0 100 200 300
Units Sold 0 100 200 300
Fixed Costs $2,400 $2,400 $2,400 $2,400
Unit Sales 0 2000 4000 6000
Unit Cost 0 500 1000 1500
Fixed Costs + Variable Cost $2,400 $2,900 $3,400 $3,900
74
PriceCostPriceSales
CostsFixed
salesevenBreak
78. EXAMPLE – ACTIVITY PLANMth Start End Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb
Setup
• Research
and Planning
1 Mar 31 Mar
• Registration 31st
Mar
• Funding 1 Apr 15 Apr
• Rent/Set up
place
16 Apr 16 May
• Purchase
Assets
1 May 31st
May
•Hire People 2 May
• Stock
Purchase
4 May
• Marketing 20 May
• Operations 30 June
78
80. WHAT YOU HAVE LEARNED
• Business Ideas
• Legal Process
• Start up Costs
• Products and Services
• Market Research
• Market Strategies
• Finances
–Running Costs
–Profit and Loss
–Break Even Analysis
• Action Timeline
What is it? What does it constitute of?
Business Provides Products or Services to Customers in exchange of money.
Why is it important?
For the business (profits, pay employees), people (get products and service), government(get revenue from taxes)
Financial Strategy is where most people are weak, not everyone has learned accounting. <ask around>
So what needs to be covered in this part are the following.