HOLY ROSARY ACADEMY OF LAS PIÑAS CITY
HELE/TLE/ TECHVOC DEPARTMENT
SY 2021-2022
TEACHER:
MS. SHERYLYN
SUBJECT/LEVEL: ENTREPRENEURSHIP 11 (2nd quarter)
Lesson 4: BUSINESS PLAN
Lesson Description
In the last 5 modules that we have studied you have gained knowledge on the core aspects of the
business plan: Entrepreneurial and Marketing process, Marketing Plan, Product Development and 4Ms of
Operations or the Operation plan that you will adapt in the implementation of the business.
In this module we will be discussing the preparation of a business plan, its purpose and the outline
and description of each part.
The Business Plan is a blueprint of the business that the entrepreneur would like to start. It aims to establish
if a business idea will bring in a fair return to one’s investment, will be beneficial to the society, and will
bring no harm to the environment when it is operated.
Lesson Objectives:
At the end of the lesson, students are expected to:
1)
2)
3)
4)
Define a business plan
Enumerate the purpose of a business plan
Describe each part of a business plan
Develop their own business plan
Content
A) The BUSINESS PLAN
 A business plan is a comprehensive paper that details the situation analysis, objectives, strategies
and tactics and how to monitor and control the enterprise.
There are many business ideas that may look attractive to the entrepreneur at first, but not
necessarily “doable”. The goals of a business plan are to assess the feasibility of the business idea,
develop business strategies to make the business idea doable, and to use it for obtaining resources,
especially loans from financial institutions like banks.
According to the Dept of Trade and Industry, through the Bureau of Small and Medium Enterprise
Development (BSMED), the following are the reasons why an entrepreneur still needs to make a
business plan:
 Reduce, if not remove, the risk of losing money invested in a poorly researched or unstudied
business idea. The entrepreneur should find out where one’s money is going before letting go
of it.
 Avoid costly mistakes. Every sudden or careless decision the entrepreneur makes for the
business entails costs that one might not be able to recover.
 Anticipate the financial requirements. It is always wise to foresee sudden increases or decreases
in the demand for the product or service so that the entrepreneur can plan for the lean months
and ensure that the business will have enough resources to met business obligations during the
periods when sales are low.
 Organize the activities beforehand. As a road map on unfamiliar territory, it allows the
entrepreneur to estimate how the business will perform in the future and to prepare for
contingencies in case things will not turn out as planned.
 Assess actual performance against set goals. It enables the entrepreneur to set targets in terms
of sales volume and revenues, as well as expenses, among others. Once the business is put up,
the entrepreneurs can always go back to the business plan to compare actual performance
against the set goals
 Apply for financing from lending institutions. A well-prepared business plan can be the backup support to convince possible sources of capital, especially banks, that something good will
come out of the business idea.
Who will be using the business plan?
A business plan is very important to various parties. Among those who need business plans
are the following:




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Shareholders
Bankers or Creditors
Customers
Suppliers
Employees
 To gain their confidence, these stakeholders will have to be informed about what are the
purposes, directions, core business and financial situation of the business venture from the
time it will start and in the next few years based on its forecast.
 The following are the essential elements of a good business plan:
BUSINESS PLAN OUTLINE
I.
Executive Summary
 Description of the proposed business and business model
 Description of the market opportunity to capture or market problems the business
solves
 Reasons for why this is an attractive business opportunity
 Key distinctions or differentiators of the business versus competitors
 Overview of the sales, marketing, and operations strategy and plan
 Description of the execution plan and timeline
 Overview of projected financials containing revenues, costs, profits and
assumptions
II.
Management and Organization
 Company Name, Logo and Address
 Vision and Mission Statement
 Key personnel
 Workforce and Support personnel
 Organizational chart
 Ownership, Capitalization, Compensation and Incentives
 External Management support
III.
PRODUCT /SERVICE PLAN
 Purpose of the product/service
 Product’s unique features
 Material requirements and sources of supply
 Process and equipment that will be used to manufacture the product/render the
service
 Production/Service Process and Controls
 Distribution logistics
 Regulatory and other compliance issues
IV.
MARKET PLAN
 Market analysis, which includes demand and supply vis-à-vis competitors
 Marketing and Sales Strategies
 Product / Service Characteristics or features
 Pricing Policy
 Sales Projections
V.
FINANCIAL PLAN
 Start-up Costs requirements
 Financial Projections
 Breakeven analysis
 Budget
References:
1)Edralin, Dr.Divina M., Entrepreneurship K-12 Revised Edition, Vibal Publishing House
2) Batisan, Ronaldo S., Entrepreneurship DIWA Senior High School Series, Diwa Textbooks