Lesson 98-Prepare A Simple Family Budget

Name:
Address:
Indicate the Family Income:
Father:
Mother:
Brother:
Sister:
Other Income:
Total Income:
Less:Family Expenditures:
Food:
House & Lot:
(Rent)
(Own,if any)
Education:
Elementary:
High School:
College:
Household Help:
Clothing:
Utilities:
Electricity:
Water:
Telephone:
Recreation:
Total Expenses:
Savings:

Lesson 97-Managing Family income

*A well managed income is enough to meet the needs & satisfy wants.
*Savings-amount set aside for future use.
*Investments-putting an amount in terms of money productively.

Lesson 96-Family Budgeting

*Budget-a plan of expenditures versus income.
Factors to Consider in Budgeting:
1. Size of the family
2. Family income
3. Family needs
4. The place where the family lives
*Operational Budget-plan of expenses of the family in providing their needs without debts.
Composition of Operational Budget:
1. Food
2. Shelter
3. Clothing
4. Education
5. Household Expenses-helpers
6. Utilities-water,electricity,telephone
7. Medical & Dental Care
8. Recreations & Entertainment
9. Savings-future plan
*Needs-important
*Demands-wants that can be set aside

Lesson 95-Budgeting For Personal Use

How to Prepare Personal Budget:
1. Keep a record of your income.
2. prepare a list of your expenses.
3. Arrange them by priority.
4. Keep a record where your money goes to know if you have followed your listed priorities.
5. Make a habit of saving for future use.
Limiting Expenses:
1. Make a list of the things needed & buy only those that are in your shopping list.
2. Recycle before buying things for your personal or home use.
3. Use substitutes.
4. Do some window shopping first to compare prices.
5. Avoid spendthrift friends.
6. Avoid impulsive buying.

Lesson 94-Nature of Expenses & Income

*Family Income-combined earnings of parents & other family members with jobs.
*Salary-money earned
*Expenses-money paid for services rendered for purchase of goods needed.
2 Types of Expenses:
1) Fixed Expenses-payment done regularly( monthly )
2) Flexible Expenses-payments done once in a while as needs arises only ( sometimes emergencies)

Lesson 93-Receipts & Operational Expenses

Receipts-is a written proof of receiving an amount for goods or services rendered(for record keeping)

Lesson 92-Proper Packaging

*Packaging-involves the arrangement of the products in containers,boxes,cans,plastic packs, before it reaches the consumers.
*Perishable Goods-are those that are easily soiled.
Ex. Foods & beverages
*Fragile Products-are those that are easily broken like ceramics,crystals,glass, & should otherwise be placed in a steady container wrapped with shredded paper or plastics or scrap foam to prevent it's breakage.

Lesson 91-Accurate Order Filling

Accuracy in filling customer's order is imperative. If the buyer does not receive the exact number or amount of what he purchased he either files a complaint for short orders, & does comes back to repeat his purchase.

Lesson 90-Courtesy & Efficiency in Customer Service

1.Courtesy-it arises from being gracious,polite & being considerate for the feelings of the customers.
2.Loyalty-a seller should be faithful to the company or product as well as to their colleagues.
3.Truthfulness-honesty & openness.
4.Efficiency-able,skillful,competent & energetic worker.

Lesson 89-Sales Promotion

Methods of Sales Promotion:
1.Direct Selling or Personal Selling-done by the Salesman or Salesclerk.
2.Advertising-a paid presentation of goods or products to the public through media,magazines,newspapers,radio,television,billboards,mail order catalog,& internet.

Lesson 88-Pricing

*Price-refers to value utility of the merchandise.
Consider the following in Pricing the Merchandise:
1. Value of goods & services.
2. Desirability of goods & services.
3. Season of the year
4. Competition of other brands & stores
5. Attitude of customers towards prices
6. Mark-up needs for profitability of the store.
*Mark-up-the difference between the cost price & the selling price of a product.
Formula for a Reasonable Mark-up:
Mark-up Percentage=100 x Estimated Expenses
____________________
Estimated Gross Sales-Estimated Expenses

Labels & Price Tags:
Republic Act No.71-The Price Tag Law(requires the proper labeling & price tag to be attached to the merchandise.)
Ways of Marking the Merchandise:
1. String Tags
2.Price Tickets
3.Hand & Rubber Stamp
4.Slot Tickets
5.Soft Special Pencil
6.Gummed Labels

Lesson 87-Types of Selling

2 General Types of Selling:
1. Wholesaling-act of selling in large quantities.The person who performs this activity is known as the wholesaler.
2.Retailing-act of selling in small quantities.The person who performs this activity is the retailer.
Classification of Selling:
1.According to Ownership
a)Independent Stores-owned & managed by a single family or individual.
b)Franchise-retailers(franchisee) who entered into a contract with the manufacturer or wholesaler referred to as the franchiser.
Ex. Jollibee,Chowking,McDonalds,KFC,etc.
c)Chain Stores-owned & managed by an individual or family or corporation.These offers the same line of business activity located in different places.
Ex. SM,Makro,Robinson,Purgold etc.
2.According to services rendered
a)Cash & Carry Store-sells goods on cash basis only.
b)C.O.D-goods are paid upon delivery.
c)Supermarkets-a self-service Store with wide variety of merchandise.Goods are departmentalized.
d)Credit Sale-customers buys goods on credit.The customer is given a specific period of time to pay his purchases.
e)Credit Card-the customers buys on credit.His purchases is guaranteed by the credit card company.Payment are directed to the card company either in full or partial payment.
3.According to Selling Method
a)Direct Selling-sells goods directly from the producers to the consumers.
b)Mail-Order House-sells goods through mail.Goods are ordered through a catalog & are delivered by mail or by door-to-door trucks.
c)Automated Vending Machines-a self-service coin-operated machine.
4.According to Merchandise Line
a)General Store-a retail store that sells a wide variety of merchandise.
b)Specialty Store-one-line specialty shop
c)Convenience Store-a Self-Service Store

Lesson 86-Types and Importance of Retailing

* Retail Store-owned by 1 person or family.
Classification of Retail Store:
1.General Store-it carries wide variety of unrelated merchandise like hardware,groceries,school supplies & even dry goods.
2.Single line Store-it carries only 1 line of merchandise.
3.Specialty Store-sells only 1 line of products whose specialty is different from others.

Importance of Retailing:
a.)It employs people.
b.)It is a source of income.
c.)It is a distribution center.
d.)It adds to the economic status of the community.
e.)Taxes paid add to the income of the national government.

Lesson 85-Simple Business Plan

1.Set your long & short term objectives.
2.What changes are taking place in the business & how should I prepare for them?
3.How can I attain my goals?
4.What is my timetable in accomplishing my plans?

Parts of the Business Plan:
A)Title of the Business
B)Name of the Owner
C)Address of the Business
D)Introduction about the business
E)Objectives of the business
F)Financial status of the business
G)Strengths & Weaknesses of the business
H)Opportunities of the business
I)Threats in the business
J)Marketing Plan(coverage of the business)

Lesson 84-Raw Materials & Products in the Community

1.Industry:Wooden Furniture
Backward Linkages:Lumber,Labor,Delivery
Forward Linkages:Office Furnitures,House Fixtures,Delivery
2.Industry:Garment Trades
Backward Linkages:Textile,Threads,Equipment,Labor,Delivery
Forward Linkages:T-shirt,Pants,Children's Dresses,Underwear,Salesforce,Building
3.Industry:Food Manufacturing
Backward Linkages:Raw Products(ingredients),Equipment,Labor,Processing
Forward Linkages:Distribution,Labor,Sales Staff
4.Industry:Shoe Factory
Backward Linkages:Machineries,Leather,Synthetics,Corks,Woods,Nails,Labor
Forward Linkages:Ladie's shoes,Men's shoes,Children's shoes,Infant's shoes,
Labor,Delivery,Distribution,& Building
5.Industry:Entertainment
Backward Linkages:Building,Office Staff,Furnitures,Artists,Talent Managers
Forward Linkages:Promoters,Producers,Trainers,Training Studio,Equipment etc.
6.Industry:Education
Backward Linkages:Building,Office Staff,School Personnel,School Furnitures
Forward Linkages:Books,School materials,School instruments,Electronic equipment,etc.

Lesson 83-Knowing the Needs for Products & Services

1. Demands for products & services vary in nature,traditions,& the communities paying capacity.
2. Products & services are abundant & varied.

Lesson 82-Identifying Business Opportunities

Ways of Generating Ideas for Business Possibilities:
1. Examine available goods & services.
2. Examine their current & future needs.
3. Examine how needs are being satisfied?
4. Examine available resources around you.
5. Read magazines,news articles & publications on new products & technologies.

Lesson 81-Benefits of Planning

1. You are your own boss.
2. Financial security for the entrepreneur & his family.
3. Improve lifestyle of the entrepreneur & his family.

Lesson 80-Feasibility Planning

*Feasibility Plan-is a realistic & optimistic plan.
Market Study:
1.Who are your targeted prospects?
2.Do you know the buying capacity of your targeted prospects?
3.How do they buy?
4.Will they be satisfied with the services offered?
5.How will you distribute your goods?
6.What will your prospect get from patronizing you product?
7.Is your price affordable?
8.Do you know the general trade practices regarding your products or services offered?
9.What transportation system is available to reach the buyers?

Lesson 79-Opportunities for Entrepreneurial Activities

1. Entrepreneurship is not selective.
2. As long as there are people who are in need, you are in business.
3. Promotion of Industries:
a)Micro Enterprise-home industries operated within the home or housed in makeshift quarters.
-5 workers with not less than 50,000php as capital
b)Cottage Enterprise-managed & operated by a family.
- 6 to 9 workers with 50,000 to 500,000php as capital
c)Small Enterprise-10 to 99 workers with over 500,000 to 5 million pesos as capital
d)Medium Enterprise-100 to 199 workers with over 5 million to 20 million pesos as capital, like specialized manufacturing industries.
e)Large Enterprise-200 workers or more.Over 20 million pesos as capital