Final DRAFT

Start
Your
Business
(SYB)
Trainer’s
Presentation
Guide

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This Start Your Business (SYB) Workbook was developed by
the International Labor Office (ILO) to be used in the Joint Project
on Youth Employment and Migration (JP-YEM) Project in the
Philippines. The program is designed to enable people, including
young men and women, to draw up a simple business plan for a
micro or small business they wish to start.

Together with a Workbook for the participants, this Trainer’s

Guide is used by ILO-certified Trainers in conducting a Business
Planning or Start Your Business (SYB) Training. Depending on
the educational level of the participants, it takes from three (3) to
five (5) days to complete the training.

Participants in the training have to be already engaged in an

existing business or, at the very least, they should have a clear
idea of the business they propose to start. If they do not meet
these two conditions yet, they should undergo the Generate Your
Business Idea (GYB) Training first. They also need to
accomplish the GYB Personal Assessment Exercise and obtain
a score of 76 and above before being allowed to take SYB
training.

This trainer’s guide is accompanied by a PowerPoint

presentation and a MS Excel file in the attached CD. On the left-
hand column of each page of this guide are the black and white
versions of the slides that trainers should use in conducting the
training. On the right column of each guide shows suggested
explanations and activities that the trainer may use for each
slide.

The PowerPoint slides should be color-printed on tarpaulin

sheets measuring approximately 2.5 feet (h) x 3.0 feet (w) each.
These printed sheets should be used in situations when electronic
PowerPoint presentations are not possible.

Instructions on how to use the MS Excel file are on the Worksheet

entitled “Variables”.

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Table of Contents

PREPARATIONS......................................................................................................................... 4

SUGGESTED PROGRAM..................................................................................................................4
SUGGESTED EQUIPMENT AND SUPPLIES........................................................................................5

DAY 1 TOPICS –.......................................................................................................................... 6

ASSESS YOUR MARKET AND MAKE A MARKETING PLAN.............................................................7

PRICING...........................................................................................................................................13
RECORD-KEEPING..........................................................................................................................16

DAY 2 TOPICS –........................................................................................................................ 20

COSTING AND PROFIT....................................................................................................................21

MAKE A CASH FLOW PLAN...........................................................................................................24
CALCULATE YOUR START-UP CAPITAL........................................................................................25

DAY 3 TOPICS –........................................................................................................................ 26

LEGAL FORMS AND RESPONSIBILITIES.........................................................................................27

BUSINESS AND CULTURE...............................................................................................................31
APPLYING FOR A LOAN..................................................................................................................33
The Business Plan.....................................................................................................................34

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Preparations
Review the section of the “SIYB Trainer’s Guide” on the detailed steps you need to
take in preparing to conduct a training on Start Your Business (SYB). Make sure the
participants meet the minimum criteria to qualify for the training. To be selected for
SYB training, applicants should provide satisfactory proof that they have a concrete
business idea. Furthermore, they will have to prove that they either have the technical
skills, or have access to the technical skills required to start the planned type of
business. As mentioned earlier, micro and small entrepreneurs who are already in
business often do not have a business plan. They can join SYB training and, at the same
time, improve their business by making their first business plan.

In addition, below are administrative tasks you need to do before and during the
actual training:

1. Confirm all co-trainers’ and participants’ attendance.

2. Finalize and print the detailed program
3. Ensure that all supplies, materials, equipment (especially printing and
photocopying), and venue are available and confirmed
4. Confirm timely catering for all days
5. Confirm transport (if needed) for the visit to the local business area.
6. Print out and have participants sign registration forms
7. Obtain contact details and print out a directory of participants
8. Obtain the proper signatures and print out the correct names on certificates for all
the participants.
9. Obtain and keep control of all cash to be disbursed during the training (e.g.,
paying for training facilities, if any)

Suggested Program –

Day 1 Day 2 Day 3

800 Registration Feedback & Review Feedback & Review
Introductions &
830
Expectations The Business Plan
Costing and Profit
Assess Your Market and (cont’d)
900
Make a Marketing Plan
1000 Break Break Break
1030 Assess Your Market…
Make a Cash Flow Plan Business and Culture
1100 (Cont’d)
1200 Lunch Lunch Lunch
1300 Pricing Compute Start Up Legal Forms of Business
1400 Record-Keeping Capital Legal Responsibilities
1500 Break Break Break
1530 Record-Keeping The Business Plan Applying for a Loan
1700 Daily Feedback Daily Feedback Training Evaluation

Suggested Equipment and Supplies

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1. LCD Projector and Laptop or White/Blackboard
2. Printer (or access to one)
3. Whiteboard markers (black, blue, and red) or Chalk
4. Notebooks
5. Pencils
6. Permanent Markers (black, blue, and red),
7. Large paper or flip chart paper (at least 30 sheets)
8. A4 or Letter size paper (1 ream)

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Day 1 Topics –

Assess Your Market and Make a Marketing Plan

Pricing
Record-Keeping

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Slide Assess Your Market and Make a

1 Marketing Plan
To prepare for this Session, you must
obtain the materials for the Marketing
Game.
Get 1 piece each of 5 different types of
soap, a sachet of shampoo, and other
personal care products. It is best to get
soaps of different ingredients (herbal, etc.)
made by companies that are NOT well-
known. If you use popular brands,
participants will be biased for their favorite
brand.
Make 5 labels using the capital letters A to
E on half sheets of A4 paper. Next, write a
short description that differentiates each of
the 5 soaps. These are your “Product”
labels but DO NOT write “Product”.
Make 5 labels for each soap with 5 different
prices that are significantly different from
one another (e.g., 30-300% difference).
These are your “Price” labels..
Make 1 label that says “Buy 1; Take 1”.
Make another label that says “Free
Shampoo” or other promotional gimmick.
These are your “Promotion” labels. Use an
extra soap, the sachet of shampoo or other
personal care products as promotional
items in the game.
Slide Explain the objectives of the session using
2 the SYB Workbook.

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Slide The Market’s “2Cs” – Customers and

3 Competitors
Form groups of 4-5 and instruct them to
brainstorm and list down words that define
a “Market”. You write down their answers
on the board or on a large sheet of paper.
Ask them “WHO are in the Market?” If they
don’t mention these, add them yourself –
“Customers and Competitors”.

Slide Ask them to answer the question “Who are

4 your customers?” before you show the
answers.
Tell them to go to Activity Sheet no. 1 in
their workbook. Explain the terms.
Group the participants into pairs to do the
activity. Each participant should use the
Activity sheet to “interview” the other about
the latter’s product/service. Pair those who
need help with participants who are more
advanced so that the latter can help the
former.
Move around to see if they are able to
accomplish the worksheet. Assist those
having difficulty.
Slide Ask them to answer the question “Who are
5 your competitors?” before you show the
answers.
Note: Examples of similar products are fish,
meat, and chicken. The market of one
affects the others. If the price of fish is too
high, customers will buy chicken or meat. If
the price of chicken is too high, customers
will buy fish, pork, or beef if these are
cheaper and allowed by their diet.
Tell them to go to Activity Sheet no. 2 in
the workbook. Explain the terms.
Move around to see if they are able to
accomplish the worksheet especially the
sections on their competitors’ strengths and
weaknesses. Assist those having difficulty.
The best businesspeople know and
understand both their customers AND
their competitors. They are able to make
effective marketing plans based on their
understanding of the 2C’s of the Market.

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Slide Make 5 columns on a black/white board or

6 brown paper or on a Spreadsheet
document projected to the screen. List
down all the first names of your participants
on the leftmost column of the board or
paper. Write 4 blank lines opposite each
name in the 4 columns. Tell everyone to
leave the room and wait for your call before
they enter again.
In the first round, arrange 4 soaps, brief
but clear product descriptions, and the
letters A-D, on a table inside your training
room. Ask the participants to come in and
choose which one among soaps A-D they
prefer. Read each participant’s name on list
and ask him/her to say his/her selected
soap out loud. Write down the selected
letter on the blank opposite the name on
the list. Ask them to leave the room after
they have said their choice.
In the second round, add the Price labels
and repeat the process as in Round 1. Put
the highest price on the product that was
chosen the most number of times and put
the lowest price on the product that is
least chosen.
In the third round, hide the 2 soaps that
are most often chosen. Add the 5th soap E
with its description and price. Repeat the
process.
In the fourth round, return the 2 soaps
hidden previously and add the Promotion
labels to the least popular items in the 3
previous rounds. Repeat the process but
ask them to return to their seats after they
have made their choice in this last round.
To process this game, ask them what
influenced their choice in each round. Write
the following at the top of each of the 4
columns after discussing each round -
Product; Price; Place; Promotion
Explain that these are the 4Ps of
Marketing. This is a subject that usually
takes a semester to study but which they
have completely experienced in an hour-
long game. They have proven how each P
changes the buying behavior of customers.
This is the goal of every entrepreneur – to
change the buying behavior of customers
so that they will prefer to buy from
him/her rather then from competitors. At
the end of this step, they themselves will

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make their own marketing plan using the
4Ps.
Note that the 3rd P, Place, is so important. If
the product is not placed properly,
customers will not see it and will not buy
it. Give good and bad local examples of
how stores and groceries display their
products.
Slide The 4Ps are explained further in the next
7 slides. Ask them about their present
practices for each P. Encourage discussion.
Explain that it is not really new or
complicated as they are already doing it in
their present businesses. They just need to
do it deliberately and systematically.

Slide A pricing exercise will come in a later

8 session.

Slide A good practice for “Place” is to make your

9 most profitable products easily visible to
your customers by placing them at eye-
level. Do not hide them!

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Slide
10

Slide Ask them to suggest simple and

11 inexpensive ways of promoting their
products/services. You can also make
suggestions. Think about how your
organization can assist them in promotions.

Slide Find out and tell them how you or your

12 organization can help them get free
publicity.

Slide Keep surroundings neat and clean to give

13 customers a good impression. Smiling
often and being cheerful will also help. Ask
them how many times they have been
turned of by obnoxious salespersons?
They should also take advantage of free
signs and announcements offered by
producers and distributors.
The colors yellow and red easily get the
attention of potential customers.

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Slide Go to Activity Sheet no. 4. Explain the

14 terms. This is the first step in systematizing
their 4Ps – writing them down.
Move around to see if they are able to
accomplish the worksheet. Assist those
having difficulty.

Slide Wrap up the step with this summary.

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Slide Pricing
16

Slide They should use their assessment of their

17 customers and competitors in Activities 1
and 2 when setting their prices.

Slide One of the most difficult temptations to

18 resist in business is to reduce the price just
to make a sale. Remember that a sale may
not necessarily produce cash (if it is on
credit) nor enough profit (if the price is too
low).
The general rule is: Sell only if the price is
enough to cover all costs and makes a
profit and brings cash into the business.
Setting low prices has other risks aside
from not being able to make enough profit
to pay for business costs:
 Because it is cheap, customers
may think the product is of low
quality.
 Initial customers may buy just
because of the low price. The
moment you need to raise the
price, you lose them.
Slide If you cannot make enough profit after
19 setting your prices similar to that of the
competition, you should study how you can
reduce costs, and not how you can
reduce your prices.

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Slide Conduct this as a contest and give a

20 simple prize to the winning group.
Divide them into groups so they can
discuss and agree on their answer for
each case.
As an alternative game, you may also put
3 chairs marked A, B, and C in front of the
classroom then ask them to line up in front
of the letter of their choice for each round.
Those who do not get the preferred answer
are eliminated. The last one(s) remaining
after 4 rounds is the winner. Make sure
you give a prize.
The preferred answer is 39.99. Your pens
are of a better quality and have to be
priced higher than the low quality pens.
Your market for your pens is different from
your competitors’.
Slide The preferred answer is 4.75. This is to
21 attract customers into your restaurant to
entice them to buy your other products.
This is usually the case with inexpensive
bread. It is used to attract customers to
buy more expensive, higher margin cakes,
cookies, and pastries.

Slide The preferred answer is 10.00. This

22 maximizes margins while not making the
customer expect higher quality.
Customers will never buy from you again if
they find out that you are charging them
too much for the level of quality of your
product. You can also spend more to
improve your quality and sell your product
for PhP 15.

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Slide The preferred answers are PhP 70.00 and

23 PhP 80.00 to be consistent with your
market and location.
Your market is higher than the market of
the cheap shops. You also have to pay
higher rent.

Slide Whether you use pricing by comparison or

24 the mark-up method, record-keeping is
required in any business. This will be the
next important topic of the training.

Slide What are the most important things to

25 remember in pricing?

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Slide Record-Keeping
26

Slide Record-keeping is not just about writing

27 things down. It is about filing documents
and writing records in an orderly manner.
It need not be complicated. The simpler,
the better.

Slide A 7th and 8th column may be added for

28 Credit transactions. The 7th column can be
for credit sales and the 8th column can be
for credit purchases from suppliers.
Monitor these credit transactions closely!

Slide Use the Bakery example in the Handout as

29 you go through each step. Emphasize that
this example assumes that all transactions
are in cash.

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Slide Use the Bakery example in the Workbook

30 as you go through each step.

Slide
31

Slide
32

Slide
33

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Slide
34

Slide
35

Slide You can project the spreadsheet on the

36 screen to show the calculations.

Slide Instruct them to read the Bakery example.

37 Encourage them to ask questions. They
should tell you what they do not
understand in the example.

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Slide What are the most important things to

38 remember in Record-Keeping?

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Day 2 Topics –

Costing and Profit

Make a Cash Flow Plan
Compute Your Start Up Capital
Business Plan

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Slide Costing and Profit

39

Slide If they don’t know how to calculate the cost

40 of their product/service, they may not be
able to price it correctly. They will either
lose money if they price it too low. Or lose
customers if they price it too high. Both
ways, they lose.

Slide
41

Slide Understanding costs helps them reduce

42 their costs while improving quality and
increasing their profits. Direct costs are the
most important costs because these “go
into” each product. If these are too high, it
will be very difficult to price their product
competitively.
Indirect costs are an easy target for cost-
cutting because these are not directly
related to the product/service.

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Slide Ask them to give examples. Use the bread

43 and cake example to identify these costs.

Slide Ask them if the items listed are direct or

44 indirect costs. The answers should be
obvious except for the following:
Steel for factory gates are direct costs for a
business that makes these gates. But it is
an indirect cost for any other business.
Scissors are not direct costs because
these are not incurred for every customer.
Unsold food is a direct cost because you
can relate it to how much you produce. If
you produce too much, this goes up. If you
produce just enough, this goes down.

Slide Depreciation is applied only to property,

45 equipment, furniture, and tools of the
business that are used but “not
consumed” when producing a product.
These items also last for a long time,
usually more than a year. Recording and
treating this as a cost allows you to
“recover” the cost of buying these
equipment. Another way of looking at
depreciation is that it allows you to set
aside or “save” money that you will use
later to replace your property, equipment,
tools, and furniture when these break
down.

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Slide To compute depreciation, they must know

46 or estimate the “life” or the period that the
business’ equipment, tools, furniture, etc.
will remain useful. For costing purposes,
the yearly and monthly depreciation should
be computed.

Slide Costing will help them focus their business

47 on the products that give them higher
profit at less cost.
If they don’t analyze their costs, they might
be wasting their most precious resources –
their time and their money.
If they think only a few people buy cake,
tell them that they should make a
marketing plan (4Ps) to make more people
buy cake.
Slide What are the most important things to
48 remember in Costing and Profit?

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Slide Make a Cash Flow Plan

49

Slide A business needs ENOUGH profit, not just

50 some profit, to be able to accomplish these
objectives. They should aspire to GROW
and EXPAND their business and not be
satisfied with a micro-business.

Slide Accounting lessons are not needed to

51 make these most important financial plans.

Slide The Cash Flow Plan (CFP) is very similar

52 to the Record Book. However, the CFP
can give more information that the Record
Book cannot, such as –
 Estimates of future cash flows
 Effect of indirect and direct costs on
cash flow
 The Need to reduce certain costs
Also, it is easier to calculate when
numbers are written vertically instead of
horizontally.
Ex. Which is easier to calculate?
1,234 – 678 = ? or
1,234
– 678
?

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Slide How to avoid running out of cash –

53  Cut costs
 Get credit from suppliers
 Avoid giving credit to customers
 Convince the family not to expect to
get cash immediately from the
business
 Rent equipment instead of buying it

Slide Ask them to go to Activity 10 in their

54 Workbooks. You should read the Activity
details aloud and see if they can follow.

Slide Calculate Your Start-Up Capital

55 Use the Workbook contents to guide the
discussion of this topic.

Slide What are the most important things to

56 remember in Making Your Cash Flow
Plan? In Calculating Your Start-Up
Capital?

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Slide The Business Plan

57
Instruct the participants to do their
business plan using the forms provided in
the Workbook. There are also extra forms
in the last section of their workbooks. You
and the other trainers should move around
and see if the participants are able to fill up
the forms. If not, you should help them.
Also, encourage the more advanced
participants to help their co-participants

Some of them may not be able to complete

the business plan so you should get their
contact details and FOLLOW-UP. Give
them your contact details so they can also
follow-up with you.

Slide Use these slides to show examples of how

58 to fill up the forms.

Note that you should be the one to put the

prices of some sample products like
chicken and rice. Research these prices
before you conduct the training.

Use the latest prices in your Power Point

presentation or your tarpaulin sheet.

Slide
59

Slide
60

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Slide
61

Slide
62

Slide
63

Slide Continue guiding them closely in filling up

64 the forms.

At this point, you may have to do overtime

work. They may also have to continue their
work during the evening of Day 2.

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Day 3 Topics –

Business Plan (Continuation)

Business and Culture
Legal Forms of Business and Responsibilities
Applying for a Loan

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Slide Business and Culture

65 Role Play (5-10 minutes)
Before this session, select 2 participants
who will not be shy in acting out the roles
of the Business Owner and the Relative as
described below:
The Situation
Your Triple T Furniture Company is doing
well. You want to employ a sales manager,
so you can concentrate on the production
part of your business. One of your relatives
heard about your plan and pressures you
to give him/her a job. What do you do?
The Business Owner
 You know your relative has been
fired a few times for lack of
discipline at work.
 Further, you already have
somebody else in mind. You really
do not want to recruit your relative
but you wonder how to tell him and
what will be the implications of
saying no.
The Relative
 You are in a difficult financial
situation and you need money to
send your kids to school
 You need the job but you know
your cousin is a tough guy. You
know you will have to work hard
and you are ready to show him.
Slide Start and facilitate discussion using these
66 and other questions.

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Slide There are some advantages in involving

67 friends and relatives in your business. You
know who among them are skilled and
hard-working. Some may also be good
customers.

Slide But often, there are more disadvantages.

68

Slide Discuss these suggestions.

69

Slide Ask them for their own suggestions.

70

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Slide What are the most important things to

71 remember when dealing with friends and
relatives in your business?

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Slide Legal Forms and Responsibilities

72 There are many similarities in the legal
forms of business recognized in the
Pacific. However, there may also be
differences. As a trainer, you should do
some research first before you use these
slides. Do not hesitate to revise the
slides, if needed. Make your own notes
for each slide

Slide An important part of your preparation for

73 this session is to find out the contact
persons and contact details of the local
and national offices that businesses have
to deal with in terms of incentives,
registration, fees, taxes, permits, etc.
You should give this information to the
participants. Better still, invite resource
persons from these offices to speak in
the training.

Slide
74

Slide
75

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Slide
76

Slide
77

Slide
78

Slide
79

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Slide
80

Slide
81

Slide This slide explains the importance of

82 performing legal responsibilities. Micro and
small businesses may be exempted from
some legal requirements by certain laws
and incentives. Still, they should make
sure that they pay all required local fees,
permits, and taxes.

Slide This slide shows a part of Activity Sheet

83 no. 13. Explain the terms. Encourage
questions.
Move around to see if they are able to do
the activity. Assist those having difficulty.
Give them 1 hour to do these.
Emphasize the importance of Labor laws
when the time comes for them to employ
people. Encourage them to become
members of the Social Security System
(SSS) and PhilHealth and maximize their
benefits from these institutions.

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Slide What are the most important things to

84 remember regarding Legal Forms of
Business? Legal responsibilities? What are
the risks if they do not do their
responsibilities?

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Slide Applying for a Loan

85 Invite resource persons from Microfinance
institutions, Banks, and other financing
institutions to present their loan programs
and requirements to the participants.
Request the speakers to bring brochures
and other materials that they give to loan
applicants.

Slide
86

Slide
87

Slide
88

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Slide
89

Slide What are the most important things to

90 remember when applying for a loan?

Slide Make sure you get all the participants

91 contact details so you can follow-up and
monitor their progress.

After the training give them the End of Training Evaluation sheet shown in the next
page.

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End of TRAINING Evaluation

Please answer the following questions about the Business Planning training that you have
just attended.

Please check the answer that best expresses the way you feel. Choose only one answer for
each question.

1 Did the training include the 5 Did the trainers help you to
important steps to start your understand the steps in the
business? training materials?

Yes, all the steps were covered r3 Yes r 3

Yes, some steps were covered r2 Yes, but I still have questions r 2
No, the important steps were
not included.
r1 No r 1

2 Did the training include what 6 Will you be able to use what
you expected? you learned in the training
without further help?

Yes, fully r3 Yes, definitely r 3

To some extent r2 Yes, but not fully r 2
No, I had different expectations r1 No, I need more help r 1

3 Can you finish and present 7 What do you think about the
your Business Plan with length of the training?
confidence now?

Yes, I am confident r3 It was the right length r 3

I am still not fully confident r2 It was a bit short / a bit long r 2
No, I am not confident at all r1 It was too short / too long r 1

4 Were you able to share your 8 What do you think about the
experiences and questions classroom and the services
with other participants during provided during the training?
the training?

Yes
r3 Very good
r 3
Sometimes r2 Reasonable r 2
No, not at all r1 Poor r 1

Please feel free to write down any other comments. You may also use the back of this page.

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