ENTREPRENEURSHIP, Quarter 2

Name of Learner: _______________________________ Score: _______________

Grade/Section: _________________________________ Date: ________________

LEARNING ACTIVITY SHEET NO. _5_

I. Introduction

Preparing a business plan draw a wide range of knowledge from any

different business disciplines: finance, human resource management,
intellectual property management, supply chain management, operations
management, and marketing, among others.
II. Learning Competency

Manifest understanding of starting and operating a simple business on:

 Implement the business plan
 Identify the reasons for keeping business records
CS_EP11/12BENTREP-IVa-i-1

III. Objectives

At the end of this learning activity sheet, you are expected to:

1. Define business plan;

2. Identify the reasons for keeping business records.
3. Implement the business plan; and,
3. Recognize the reasons for keeping a good business idea.

IV. Discussion

The Business Plan

The Business plan is the 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. There are many business ideas
that may look attractive to the entrepreneur at first, but not necessarily
“doable”. 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.
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 for financial institutions like banks.
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 According to the Department 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, no matter
how good the business idea seems to be:
1. 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.
2. Avoid costly mistakes. Every sudden or careless decision the
entrepreneur makes for the business entails costs that one might not be able to
recover.
3. Anticipate the financial requirements. It is always wise to foresee
sudden increases or decreases in the demand for the product or services so that
the entrepreneur can plan for the lean months and ensure that the business
will have enough resources to meet business obligations during the periods
when sales are low.
4. 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.
5. 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 entrepreneur can
always go back to the business plan to compare actual performance against the
set goals.
6. Apply for financing from lending institutions. A well-prepared
business plan can be the back-up support to convince possible sources of
capital, especially banks, that something good will come out of the business
idea.

MAJOR PARTS OF THE BUSINESS PLAN

There is no universally accepted standard format or structure of the business

plan.

1. Introduction
2. Executive Summary
3. Environmental Analysis
4. Business Description
5. Organizational Plan
6. Production Plan
7. Operation Plan
8. Marketing Plan
9. Financial Plan
10.Appendix

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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 for prospective owners or
investors, the section Statement of Confidentiality is added as the last section.

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 that the business
values the most,
3. Profess the brand identity of the product, and
4. Attract or influence the target costumers

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,

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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.

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 considered when deciding on the location of the
proposed business:

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 be 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.

Guidelines for successful business plan implementation:

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 1. Objectives- the entrepreneur should have a clear idea on what is his purpose of
putting up his enterprise.
2. Tasks- this means that the entrepreneur must know what the tasks are to
perform in order that his objectives will be realized.
3. Time allocation- This means that the entrepreneur should have a timetable or
a schedule to follow every task, so that it will be accomplish on time and realize
his objective.
4. Progress- This means that the entrepreneur should monitor the development of
the tasks and the accomplishment of the objective.

Keeping Business Records

Good record keeping can help protect the business, measure the performance
and maximize profit. Records are the source documents, both physical and
electronic, that specify transaction dates and amounts, legal agreements and
private customer and business details.
Developing system to log, store and dispose of records can benefit the business.
A systematic recording allows you to;
A. Plan and work more efficiently
B. Meet legal and tax requirements
C. Measure profit and performance
D. Protect your rights, and
E. Manage potential risks

V. Activities
Let’s Analyze
Direction: Read and analyze the statement below.
1. Explain why an entrepreneur still needs to make a business plan, no
matter how good the business idea seems to be.
2. Explain why good record keeping can help protect the business,
measure the performance and maximize profit.
Criteria Rating
1. Clarity of idea 5 4 3 2 1
2. Organization of thoughts 5 4 3 2 1
3. Relevance of the topic 5 4 3 2 1
Total : 15 Points

B. Let’s Perform
Directions:
1. The business plan starts with the market idea. Generate about five products
or services that you want to start as a small business. Describe each briefly.
Then, identify to whom you intend to sell your product(s)/service(s). Copy the
table below and write your answers on a separate sheet of paper. Present
your ideas to your parents and ask for suggestions.
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 Products/Services Description Target Market

Criteria for grading – Market Idea Rating

Organization Consistency of Data
used/Connectivity of Information 40%
Relevance & Comprehensive Details, Realistic
Completeness of Content Plans 30%
Product Idea Idea is realistic, well planned, and 30%
each part of the business concept
are fully developed.

Total 100%

2. The next step in a business plan is the production aspect. Choose one
product/service that you like the most to be your future business. Research
how you will produce it and the raw materials and equipment/machinery need
for its production. Copy the table below and write your answers on a separate
sheet of paper. Present your ideas to your parents and ask for suggestions.
Name of the Product/Service: _________________________________________
Production Process Raw Materials Equipment/Machinery

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 Criteria for grading – Production Aspect Rating
Organization Consistency of Data
used/Connectivity of Information 40%
Relevance & Comprehensive Details, Realistic
Completeness of Content Plans 30%
Product Idea Idea is realistic, well planned, and 30%
each part of the business concept
are fully developed.

Total 100%

VI. Assessment 

Multiple Choice.

DIRECTIONS: Choose the letter of the correct answer. Write your answers on a
separate sheet of paper.

1. Which of the following provides a clear direction to any uncertain business

endeavor?
A. Feasibility Study C. Business Plan
B. Marketing Plan D. Marketing Feasibility
2. Which of the following presents the general perspective of the business?
A. Introduction C. Name of the Owner
B. Description of the Business D. Location of the Business

3. Which of the following guidelines for successful business plan implementation

that the entrepreneur should have a clear idea on what is his purpose of putting
up his enterprise?

A. Objectives C. Time allocation

B. Tasks D. Progress

4. Which of the following is a delicate and important entrepreneurial task?

A. Introduction C. Proposed Name of the Business
B. Description of the Business D. Location of the Business

5. Which of the following are the source documents, both physical and electronic,
that specify transaction dates and amounts, legal agreements and private
customer and business details?

A. Records C. Data
B. Business Plan D. Tasks

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 6. Which of the following include a brief information about the ultimate mission,
vision, and objectives of the business?

A. Introduction C. Proposed Name of the Business

B. Description of the Business D. Location of the Business

7. It refers to the estimated total initial cost of the business venture must be
clearly indicated.

A. Funding Requirement and Source

B. Proposed Name of the Business
C. Description of the Business
D. Location of the Business

8. This means that the entrepreneur should monitor the development of the
tasks and the accomplishment of the objective.

A. Objectives C. Time allocation

B. Tasks D. Progress

9. This means that the entrepreneur should have a timetable or a schedule to

follow every task, so that it will be accomplish on time and realize his objective.

A. Objectives C. Time allocation

B. Tasks D. Progress

10. Which of the following is NOT part of a systematic recording.

A. Plan and work more efficiently

B. Meet legal and tax requirements
C. Measure profit and performance
D. Presence of direct competitors

VII. Reflection

Directions: Reflect on what you have learned after taking up this lesson by
completing the chart below.

1. What were your thoughts or ideas I thought….

about the implementation of business
plan prior to the discussion of this
lesson?

2. What new or additional ideas did I thought….

you learn after taking up this lesson?

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VIII. References

Edralin, D. (2016).Entrepreneurship, pages 94-95.

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

Prepared by:
MA. CORAZON AIZA G. DELA CRUZ
Teacher II, JRLMHS-SHS

IX. Key to Correction

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Activity #1: Activity #2 Activity #3

Answer may vary Answers may 1. C

vary.
2. A
3. A
4. C
5. A
6. B
7. A
8. D
9. C
10. D

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