12
ENTREPRENEURSHIP
LEARNING ACTIVITY SHEET
Quarter 3, Module 1
DEVELOPING A BUSINESS PLAN
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DEVELOPING A BUSINESS PLAN
I. LEARNING COMPETENCIES
At the end of this lesson, the learner must be able to
a. Define business plan,
b. Identify the different sections of the business plan, and
c. Identify the reasons for preparing a Business Plan for a business
d. Give the importance of the business plan
II.
Background Information for Learners
Definition of terms
Business - refers to the organized efforts and activities of individuals
to produce and sell goods and services for profit.
Business Plan - is a detailed and integrated written document that
describes the various activities involved in opening and operating a
new entrepreneurial venture.
Entrepreneur – refers to a person who strongly advocates and correctly
practices the concepts and principles of entrepreneurship in operating
and managing the self-owned entrepreneurial venture.
Entrepreneurship – is the art of observing correct practices in managing
and operating a self-owned, wealth-creating business enterprise by
providing goods and services that are valuable to the customers.
Feasibility – the possibility that can be made, done, or achieved, or is
reasonable.
Corporation - is a legal entity created by individuals, stockholders,
or shareholders, with the purpose of operating for profit.
Pre-Test. Read carefully. Write the letter of your answer.
1. Which of the following BEST described a business plan?
a. A gallery of photos that explains the location and construction of
the business
b. A written plan that is a description of all the aspects of the
business and includes the business's goals
c. A collection of plans that are combined from different business and
then analyzed and compared to your business
d. A list of guidelines that tell successful business's how to run their
company in order to make a profit.
2. What are the advantages of creating a business plan?
a. To secure financing
b. Allows the entrepreneur to focus on what they want to accomplish
c. To set better objectives and benchmarks
d. All of the above
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3. Who should prepare the business plan?
a. Anyone
c. Someone on the business
b. Entrepreneur
d. Stakeholder
4. What section of the business plan can we find the Proposed Name of
the Business, Address of the Business, Name of the Owner or Owners,
Description of the Business, Location of the Business, Funding
Requirement and Source?
a. Introduction
c. Production Plan
b. Organizational Plan
d. Operation Plan
5. Which of following is the LEAST factor to be considered when deciding
on the location of the proposed business?
a. Distance from the sources of raw materials, labor, and utilities
b. Peace and order situation
c. The geographic and climatic conditions
d. Proximity to the house of the owner of the business
4 Pics. Provide the WORD that is common in 4 pictures given.
1.
4.
2.
5.
3.
6.
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Based on the words that you have formed on the previous activity;
how do we define a Business Plan?
DEFINE BUSINESS PLAN
A written document describing the nature of the business, the sales
and marketing strategy, and the financial background, and containing a
projected profit and loss statement
A business plan is also a road map that provides directions so a
business can plan its future and helps it avoid bumps in the road. It is
the only single written document that must be prepared before opening a
new business or expanding an existing business. It provides a clear
direction to any uncertain business endeavor.
A business plan is a detailed and integrated written document that
describes the various activities involved in opening and operating a new
entrepreneurial venture.
REASONS WHY YOU NEED TO PREPARE A BUSINESS PLAN FOR SMALL BUSINESS
▪
▪
▪
▪
▪
▪
▪
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To help you with critical decisions
To iron out the kinks
To avoid the big mistakes
To prove the viability of the business
To set better objectives and benchmarks
To communicate objectives and benchmarks
To provide a guide for service providers
To secure financing
To better understand the broader landscape
To reduce risk
THE TEST FOR YOUR BUSINESS IDEA
There is another written document that must be prepared and is
equally important as the business plan. This is the feasibility study
which serves as the forerunner of the business plan.
Two Major Tests to be conducted every time a New Business Idea is
created are the following:
1. Test of Possibility
2. Test of Feasibility
The test of possibility on the new business should have a positive
result, so that the test of feasibility or viability will be conducted.
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Guide Questions:
1. What are some of the tests that need to be conducted before putting
up a business?
2. What is the difference between Business Plan and Feasibility Study?
3. Who should prepare a business plan?
BUSINESS PLAN AND FEASIBILITY STUDY
In starting a business, you will need both a feasibility study and
a business plan. Both documents should be written after conducting
thorough research and critical thinking, and conveyed in formats that
others can understand.
Feasibility studies determine whether to go ahead with the business
or with another idea, whereas business plans are designed after the
decision to go ahead has already been made.
Essentially, feasibility studies are research projects, whereas
business plans are projections for the future.
MAJOR PARTS OF THE BUSINESS PLAN
There is no universally accepted standard format or structure of a
business plan.
a. Introduction
b. Executive Summary
c. Environmental Analysis
d. Business Description
e. Organizational Plan
f. Production Plan
g. Operation Plan
h. Marketing Plan
i. Financial Plan
j. Appendix
a. Introduction
The introduction presents the general perspective of the business.
It may consist of one to two pages. It includes, among others, the
following sections:
1. Proposed Name of the Business
2. Address of the Business
3. Name of the Owner or Owners
4. Description of the Business
5. Location of the Business
6. Funding Requirement and Source
In case the consulting team prepares the business plan
prospective
owners
or
investors,
the
section
Statement
Confidentiality is added as the last section.
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for
of
Proposed Name of the Business
The formulation and drafting of the proposed business name is not
as simple as it sounds. It is a delicate and important entrepreneurial
task. Remember that the name of the business may exist in the market
for the many years. Careful and in-depth planning is of prime
importance.
The proposed business name must:
1. Reflect the business identify and image,
2. Promote the philosophical values and culture
values the most,
3. Profess the brand identity of the product, and
4. Attract or influence the target costumers
that
the
business
At least three suggested trade names must be submitted to
department of Trade and Industry for approval and registration.
the
Address of the Business
It is important that the address of the Business is correctly written
because all business correspondence is mailed to the business address.
Raw materials and other manufacturing supplies are also shipped by the
seller to the designated business address.
Nowadays, it is also necessary for the business to have an e-mail
address to facilitate electronic communication between the business
and the customers, suppliers, creditors, and other significant
parties.
Name of the Owner
The name of the owner must be properly stated. In a sole
proprietorship, there is only one owner. In case the venture is a
partnership, the names of the partners, including the extent of their
liabilities, must be indicated. For example, if a partner’s must be
properly mentioned.
For business ventures that will operate as a corporate entity, the
names, nationalities, and addresses of the incorporators must be
given.
Incorporators
are
persons
who
originally
formed
the
corporation.
Description of the Business
A brief description of the business must include information about the
type of product or service that the business intends to produce or
provide. It may include a brief information about the ultimate
mission, vision, and objectives of the business. The other products or
services that the business plans to produce or provide must also be
mentioned in the description of the business.
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Location of the Business
There are no rigid rules in the selection of the business location
since several variables affect the selection of the business location.
The basic entrepreneurial consideration is to place the proposed
business in a strategic location that will assure competitive
advantage.
What is the difference between the sections Address of the Business
and Location of the Business?
The former simply states the exact business address. No additional
description is provided to highlight the exact business address. The
latter indicates the reason/s for the selection of the location. In
case the processing plant is not within the vicinity of the business,
its exact location must be described.
The following factors should be
location of the proposed business:
considered
when
deciding
on
the
1. Proximity to the target customers
2. Distance from the sources of raw materials, labor, and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions
Funding Requirement and Source
The estimated total initial cost of the business venture must be
clearly indicated. It should include the projected breakdown or
allocation of the total cost, e.g., how much will b for building,
fixtures, equipment, supplies, and working capital. This section also
presents the source or sources of funds. The initial cost of the
investment may be provided solely by the owner or owners or partly by
the owner and creditors. The estimated period to settle the funding
source provided by the creditors must also be mentioned.
III. Accompanying DepEd Textbook and Educational Sites
Balin, MS. Entrepreneurship –Self-Learning Module (SLM) Quarter 1 – Module 1:
Introduction to Business Plan Preparation, First Edition. SDO Bicol:
Department of Education.
Aduana, Nick L (2017).Entrepreneurship in Philippine Setting for Senior High
School, Quezon City, Philippines : C & E Publishing Inc. pp.6, 211-220.
https://www.entrepreneur.com/encyclopedia/business-plan
https://www.waveapps.com/blog/entrepreneurship/importance-of-a-business- plan
https://www.investopedia.com/terms/b/business.asp
https://dictionary.cambridge.org/us/dictionary/english/feasibility
https://corporatefinanceinstitute.com/resources/knowledge/finance/what-iscorporation-overview/
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IV.
Activity Proper
Activity 1 - WHO’S WHO? ENTREPRENEUR X OR Y?
Consider the following situation.
Entrepreneur X
Entrepreneur X put up a coffee shop immediately in his barangay. He
thought of an idea that early bird catches the worm. He eventually hired
his friends and ordered stocks for his coffee shop business.
Entrepreneur Y
Entrepreneur Y is planning to open a bakery shop in his place. He
gathered first information from the residence of his place whether what
kind of bread they love to eat.
Questions:
1. Among the two entrepreneurs, who do you wanted to be? Why?
2. What is/are the risks to be taken by each entrepreneur?
3. What do you think the importance of business planning is?
Activity 2 - JUSTIFY ME.
Write True if the statement is correct. Otherwise write False and
state your reason briefly/change the word/s that make it false.
1. The process of determining the profitability of the business is
considered a test of possibility.
2. After the preparation of the business plan, the entrepreneur prepares
the feasibility study of the business.
3. The business plan is entirely different from the feasibility study.
4. The feasibility study is more detailed than the business plan.
5. One of the major parts or sections of the business plan is the
marketing research.
6. The executive summary is usually shown as the last part of the
business plan.
7. One of the sections in the introduction of the business plan is the
address of the business.
8. The funding source and requirements are usually shown as a part of
the business description.
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9. The name or names of the owner or owners ,of the proposed business
are considered very delicate information. Hence, they must not be
included in the business plan.
10. The business plan is a mixture of facts and assumptions.
Activity 3 – TELL ME A STORY
Cite a true story that you have known wherein the importance of making a
business plan before the implementation was needed. You can share it in
class or have it written in a paper.
Assessment 1
LET’S JOIN TOGETHER!
Form a group of five (5) and do the following. Follow the format
below and then share your output in class. Please be guided with the
scoring rubrics below.
1. Think of three possible names(for the average learners) and five
possible names(for the advanced learners) of your small business.
Rank them according to your preferences.
2. Indicate the proposed complete address your business.
3. Write your names as owners of the business.
4. Make a brief description of your business. You may include the
product or service that you plan to sell or serve.
5. Cite the reason for choosing the location.
6. Based on the nature and type of your proposed small business,
determine the initial funding requirement.
7. State also the possible source/s of funds.
Proposed
Business
Name
Proposed
Address
Name of
Owner/s
Brief
Description of
the
Business
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Reason/s
for
Choosing
the
Location
Initial
Funding
Requirement
Possible
Source/s
of Funds
Note to Students…
The group they will form will be the permanent group until they
finished the business plan and was able to implement it. The business
that they will write should be more realistic this time since those are
the options that they need to consider and subject for the approval of
the teacher. Financial aspects should be taken in consideration.
The scoring rubric below will be used.
SCORING RUBRICS
Developing
Highly
Proficie
nt 8
Excellent
Two or more
questions are
missing or
partially
complete.
There are 2 or
3 errors in the
output.
One question
is partially
answered or
completely
missing.
There is
1 error
in the
output.
All
questions
are answered
completely.
Shows some
enthusiastic
feelings about
topic
Demonstrates
Demonstrates
Category
Beginning
2
4
6
Completeness
The work is
very
incomplete.
Many
questions are
missing/parti
ally
complete.
Correctness
The work is
full of
errors.
Some
questions/tas
Proficient
ks were not
10
There are
0 errors
in the
output.
answered
Confidence in
Presentation
Collaboration
Cleanliness
Shows no
interest in
topic
presented.
We did the
work by
ourselves.
We talked a
little among
group
members
Our final
output is
full of
correctly.
Shows little
or mixed
feelings
about the
topic being
presented
Only some
of the
group
members are
cooperative
.
There are
some
erasures.
erasures.
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We worked
together most
of the time.
Sharing
ideas
regularly.
Our work is
clean.
greater
strong
enthusiasm
enthusiasm
about topic
about topic
during
during
entire
entire
presentation
presentation
.
We worked
together so
that
everyone
contributed
to the final
output.
Our final
output is
very clean
Everyone
worked
together
using
his/her
knowledge
and
abilities
to make the
output come
together.
There are
no
erasures.
Additional Activities:
With the same group, do the following:
Prepare the introduction section of your business plan. The cover page
of your final output will appear below.
BUSINESS PLAN
(Name and Address of Your Proposed Business)
TANDA PROCESSING COMPANY
123 VASQUEZ ST.,BRGY, III, HIMAMAYLAN
CITY, NEGROS OCCIDENTAL
www.tandaPC@yahoo.com
OWNED BY:
(Your Names as the Owners)
ANGEL TOLEDO PRINCESS
MALAZARTE
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Note that since the name, address, and name/names of the
owner/owners of the business appear on the cover page, they may no
longer be repeated in the Introduction section.
1. Use the guide for the format of the Introduction section of your
business plan.
INTRODUCTION
This section of the business plan presents the description of
the business, its location, and the total funding requirements and
the possible funding source.
Description of the Business
Location of the Business
The requirement for spacing, paragraph indention, font size and style, margins and
other technical writing requirements will be subject to the policy of the school or maybe
patterned after other research activities of the school.
Funding
Requirement
Scoring
rubric below and
will beSource
used. of Funds
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SCORING RUBRICS
Category
Beginning
Developin
g
Proficient
2
Excellent
6
Highly
Proficient
8
10
4
Completeness
The work
is very
incomplete
.
Many
questions
are
missing/par
tially
complete.
Two or more
questions
are missing
or
partially
complete.
One
question is
partially
answered or
completely
missing.
All
questions
are answered
completely.
Correctness
The work
is full of
errors.
There are 2
or 3 errors
in the
output.
There is 1
error in
the output.
There are 0
errors in
the output.
Collaboration
We did
the work
by
ourselves
. We
talked a
little
among
group
members
Some
questions/t
asks were
not
answered
correctly
.
Only some
of the
group
members
are
cooperati
ve.
We worked
together
most of
the time.
Sharing
ideas
regularly.
We worked
together so
that
everyone
contributed
to the
final
output.
Everyone
worked
together
using
his/her
knowledge
and
abilities
to make the
output come
together.
Cleanliness
Our
final
output
is full
of
erasures
.
There are
some
erasures.
Our work
is clean.
Our final
output
is
very clean
There are
no
erasures.
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V. Reflection
Today, I have learned that ________________________________________
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VI.
Answer Key
Pre-test
1. B
2. D
3. B
4. A
5. D
FOUR PICS, ONE WORD!
1. Written \
2. Document
3. Open
4. Operate
5. Business
6. Plan
A business plan is a written document prepared for opening and operating a
business.
Activity 1 - WHO’S WHO? ENTREPRENEUR X OR Y?
1. Among the two entrepreneurs, Entrepreneur Y did a better decision of
planning first before opening a business.
2. The risks to be taken by Entrepreneur X is what if his business will not
grow and he already used his money too much. Opening a business should
undergo planning first. On the other side, entrepreneur Y is on the right
track.
1.
The importance of making a business plan is it will serve a guide for
your business.
Activity 2 - JUSTIFY ME.
1.
True
2.
False, feasibility study before business plan
3.
False, almost the same
4.
False, business plan is more detailed than feasibility study
5.
False, not a major part
6.
False, first page
7.
True
8.
False, separate
9.
False, must be included
10. True
Activity 3 – TELL ME A STORY
Students’ response will vary.
Post Test
Students’ response will vary.
Additional Activity.
Students’ response will vary.
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