ENTREPRENEURSHIP

Quarter 2 – Module 1
Implement the Business Plan

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 MODULE 1
Most Essential Learning Competencies (MELCs)

Content Standard) Performance Standard

The learners demonstrates understanding one MELCs in The learner independently creates a plan of action that
Entrepreneurship. strengths and/ or develop his or her MELCs in
Entrepreneurship.

Quarter 3 Time allotment 32 hours

INTRODUCTION
This module discusses Business Implementation. It provides the “how to’s” of starting and operating a simple enterprise in
times of pandemics happening now in our country. It will give the learners essential working knowledge about the different critical
management functions (marketing, operations, finance, and human resource) and the management processes that are critical in
running an enterprise. It is also includes some discussion on constructing, interpreting, and understanding financial statements,
generating key financial ratios, and managing costs and profits. The intention of this module is not about teaching entrepreneurs
how to be expert accountants. Rather, it is simply about trying to understand, construct, and interpret financial statement. More
specifically, it meant to translate the Business Plan into a numerical format composed of financial statements.

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 What I Need to Know This give you an idea of the skills or competencies you are
expected to learn in the module.

What I know This part includes an activity that aims to check what you already
know about the lesson to take it. If you get all the answer correct
(100 %), you may decide to skip this module.

What’s In This is a brief drill or review to help you link the current lesson with

the previous one.

What’s New In this portion, the new lesson will be introduced to you in various
ways such as a story, a song, a poem, a problem opener, an activity
or a situation.

What is It This section provides a brief discussion of the lesson. This aims to
help to help you discover and understand new concepts and skills.

What’s More This comprises activities for independent practice to solidify your
understanding and skills of the topic. You may check the answers to
the the exercises using the Answer Key at the end of the module.

What I Have Learned This includes questions or blank sentence / paragraph to be filled in
the process what you learned fro the lesson.

What I Can Do This section provides an activity which will help you transfer your
new knowledge or skill into real life situations or concerns.

Assessment This is s task which aims to evaluate your level of mastery in

achieving the learning competency.

Additional Activities In this portion, another activity will be given to you to enrich your
knowledge or skill of the lesson learned. This also tends retention of
learned concepts

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 What I need to Know

This module was designed and written with you in mind. It is here to help you master the key concepts of Implementing a business
plan.

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
Challenge your Self
BUSINESS and ENTREPRENEUR

U P P U N C T U A L I T Y Z G B E H A V I O R T
R E F F E C T I V E L Y B S N C B U S I N E S S
P R O C E D U R E S T I P A I Y R T S U D N I K
S N F C O M M U N I C A T E K V S C R B P O A H
O O V E I S M U L T I P L E N J V R F G D D Y J
K I T P R O B L E M S O L V I N G E T B Y P C F
A T N J A P P E A R A N C E H J Y A E M T X A V
P A E U I F K E C S N A B V T T I T M H I U T P
P U M A Z J R F T E C H N O L O G I C A L Y A T
R T Y O Z A O U Q E D D N C A S P V P J I T D E
O I O Y F Z W O W T Y D N O C K A I T J B I T F
A S L Y M B M B E A U Q V C I I A T I T A L E H
C J P N P T A M D V C V G L T K Q Y B R Y I R O
H M M A X H E X Y O H V N Y I V F A I T O B P N
E I E H S Z T P G N Y V Q L R B K G H E L A R E
S E Y T I R G E T N I B O W C Z H Y X V P T E S
Y O S S K I L L S I F O P B P L L L E D M N T T
S Y X G N I N N A L P R E E R A C M A U E U N Y
B I N Y T I S R E V I D T U F P X C U O R O I M
O Z B Q Y S G N I G N E L L A H C V Y U I C Y E
A W B V E T A R T S N O M E D J Q Y Y Z V C M M
T N E M E G A N A M E M I T U O J Q D M P A K Z
X N V X Z I N T E R P E R S O N A L S K I L L S
Z A C I B T N E D N E P E D N I C O C Q H Q L W

Accountability Appearance Approaches Behavior

Business Career Planning Challenging Communicate
Creativity Critical Thinking Demonstrate Diversity
Effectively Employability Employment Exhibit
Honesty Independent Industry Innovate
Integrity Interpersonal Skills Interpret Data Multiple
Problem Solving Procedures Punctuality Situation
Skills Team Work Technological Time Management

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 POST TEST
GENERAL INSTRUCTIONS: Review the following materials. The answer keys are indicated in BOLD.
For numbers 1-4, On marketing plan implementation steps, identify the steps by choosing the correct answer from the box.
A. Keep communication line open.
B. Monitor accomplishment and progress.
C. Explain and delegate the marketing tasks to assigned individuals.
D. Divide the marketing plan into small manageable pieces and manageable timelines.

1. Marketing activities are important task to perform in order to ensure that the product or services serves its purpose.
2. The value proposition, the unique selling proposition, and the 7Ps or the marketing mix should be clear with the members
of the marketing team and why these were chosen to best communicate the product or services to target customers.
3. Feedback is very important in all undertakings and ensuring that is taken across at the right time in every stiuation shall
ensure success in the marketing implementation.
4. When a marketing campaign is successful, keeping it in a status quo is far harder and difficult. Thus, it is important to
manage and track its details of what went wrong and what went right, successful endeavors should have documentation.
For numbers 5-8, On marketing plan implementation steps, identify the steps by choosing the correct answer from the box.
A. Analyze and interpret the results.
B. Incorporate incentives and penalties for motivation.
C. Open yourself to relevant ideas of your marketing team
D. Adopt to the internal and external factors that affect the marketing function.

5. Marketing endeavors are worthwhile achieving when all relevant information were taken from the members of the team.
6. Marketing endeavors are prone to modification every now then and thus, to embrace inevitable changes within and
outside the organization that will shake marketing initiatives is a good indicator of consistency and proficiency of the
marketing team.
7. A good job deserves a treat either additional remuneration, free travel abroad, new car, etc will boost morale of people
who worked hard for the success of a marketing activities in place.
8. At the end of the day, output is important and CIS (comprehensive income statement) is a tool to check how well
initiatives are planned.
9. What is Unique Selling Proposition (UPS)? UPS is a/an__________________
A. factor that differentiates a product from its competitors.
B. advertising technique to invite customers to try a product.
C. theory which convince customers to switch from brands to other brands.
D. marketing concept first is proposed as a theory to explain a pattern in successful selling campaign.
10. What is Target Market? Target Market is a _____________
A. subset of the total market.
B. group of people who subjected to buying a product or services.
C. boudary of specific focus on which brands or products compete for a specific market.
D. group of customers within a business’s serviceable available market at which a business aims its marketing efforts and
resources.

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 Lesson 1 How to Implement Business Strategy?

Fulfilling the mission of an organization requires planning and management skills.

Every business should have a mapped out strategy and a strategic plan is only as effective
as the supporting goals that written to implement it. In addition, goals are only as effective
as the people who have responsibility for completing them.
A Very Clear Purpose

The first step for any business strategy is writing a mission, vision and values statement. This important step
clarifies what the organization is about and what it is trying to achieve. It also determines the values and guiding principles
that used to make business decisions. The entrepreneur must be very clear about the purpose in establishing the
enterprise. Whether it is for generating profits or feeding the family, making a difference in the industry or actualizing the
self, the purpose must be compelling enough to motivate the entrepreneur.

The personal purpose of the entrepreneur is his or her personal mission. However, it may also well be the
enterprise mission statement. The enterprise begins to have its own life and may have a purpose separate from the
personal mission of the entrepreneur.

The enterprise must state its mission statement clearly for:

1. Sake of the customers being wooed;

2. The investors who need to know what they are getting into;

3. The financiers evaluating the enterprise; and

4. The government functionaries who must regulate the activities of industries and businesses.

A Very Compelling Vision

The entrepreneur must establish an enterprise based on a very exciting business concept leading to a grand
vision. The entrepreneur must offer something new, something appealing, something different that says, “Take notice, I’m
arriving with a bang!” In other words, the entrepreneur must present a winning business concept that manifest tremendous
future possibilities.

Case example: The Jollibee Business Concept

Jollibee observed in their market research that Filipino consumers smelled

their burgers before eating them. The logic is obvious; the nose can smell a thousand
aromas while the tongue can only distinguish four tastes (sweet, sour, salty, and bitter).
Jollibee knew that good taste is a function of good smell. Their tag line, “Langhap
sarap” that roughly translate to “you can savor its good taste from its great aroma,”
Jollibee also came up with a child-friendly name and endearing mascot to accompany
the name.

Not by Any Other Name

The entrepreneur must choose a very fitting name for the enterprise. A good
name identifies the company very well. It communicates what the company is all about
and what its product all about. The entrepreneur must think long and hard about the
name because he or she has to live with it for a long time. Thus, the company name
must project its very desired image.

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 A Company of Angels

In livelihood undertakings or microenterprises, it is common for entrepreneurs to embark on a business venture

as a “lone wolf,” not needing the capital or expertise of others. For small, medium, and large enterprises, the
entrepreneur needs the capital and the expertise, or both of others. The choice of business partners here is very critical
one. A mistake would mean years of internal squabbling. Thus, the entrepreneur must choose the “company of angels,”
partners who are well meaning and like-minded.

Angel’s investors provide capital to entrepreneurs knowing that there are risks involved. However, they are
prepared to support the entrepreneur because of the good business prospects they are seeing and their favorable
character assessment of the entrepreneur. Angels also exert a lot of effort in choosing the correct partners. Angel
investors may come in the form of senior relatives, close friends, and professional equity.

A Very Good Business Plan

The next step for the entrepreneur is to have a very good business plan. It is a wise thing to do in order to chart
the course of the business properly and to focus the efforts of the entrepreneur.

The purpose of a business plan are:

1. Entice partners, investors, and bankers to fund a business venture.

2. Communicate what the enterprise is all about, what market it wants to serve.

3. Show what financial returns it could muster.

The business plan should contain important information about the following:

1. The business itself;

2. The organizers;

3. The management and technical people;

4. The financial structure;

5. Its market potential;

6. Its target market;

7. Its projected sales, expenses, and profits; and

8. Its probable risks.

What Is a Business Plan?

A business plan is a written document that describes in detail how a business—usually a new one—is going to
achieve its goals. A business plan lays out a written plan from a marketing, financial and operational viewpoint.

Business plans are important to allow a company to lay out its goals and attract investment. They are also a way
for companies to keep themselves on track going forward.

A business plan is a fundamental tool any startup business needs to have in place prior to beginning its
operations.

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 Entrepreneurs who plan to enter any business endeavor must have a business plan on hand to guide them
throughout the process. Different business plans are prepared for different purposes. There are business plans written
prior to setting up an enterprise.

Contents of the Business Plan

I. Introduction
A.The Business Concept and the Business Model- a business concept contains the essence of the enterprise in a
concise but powerful manner. It stresses the value of the product offering to the target customers who would
most likely buy it. The product concept must translated into a business model. A business model is a formula
on how the enterprise exactly plans to make money out of the business.
B.The Business Goals, Vision, Mission, Objectives, and Performance Targets- the Business goals show the
future and long-term prospects of the enterprise. It is composed of the vision, mission, objectives, key result
areas, and performance indicators of the enterprise. (See case example)

Case example 1: Double Happiness

The vision of Double Happiness is to” establish a commanding presence and market
leadership as a food chain servicing major bus terminals in Central Luzon within the next five years.”
The Business Goals communicated by articulating the basic purpose of setting up the
enterprise in a mission statement. All business enterprises for making money for its investors.
For Double Happiness, its mission statement is “to provide quality food and passenger
convenience services that would generate sufficient profits for the stockholders and improve the lives
of its employees.
The vision and the mission statements must then translated into measurable results, more
popularly called objectives.
Objectives must be more specific than the vision and mission statements. They should be
measurable, achievable, and time-bound.
Double Happiness, stated objectives are:
1. To establish a strong market presence in Central Luzon;
2. To earn good financial returns for its owners;
3. To delight customers with high quality food and services; and
4. To make Double Happiness a happy rewarding place to work in.
V. Market demandshould
The objectives and Supply, Industry Dynamics,
then translated and Macro
into key results areas Environmental
or KRAs. KRAsFactors
are the qualitative
It is normal for enterprises actually expand their product offerings to include the other
manifestations that the objectives being achieved. The key result areas must rendered segmentsintoof a bigger
market. Thequalified
businessperformance
proponent should examine all the opportunities in this bigger
measurements, otherwise called Performance Indicators. market in order to determine
what exactly influences this bigger market. The market analysis and forecasting exercise should lead to qualification
of the current and prospective size of the market.
Relevant Industry Dynamics
1. Who are the competing enterprises in the industry, what are their comparative advantages and
disadvantages?
K-12 ENTREPRENEURSHIP LEARNINGWhatMODULE
businessNAGUILIAN
models and strategies
SENIOR HIGHare they employing?
SCHOOL SY: 2020-2021
2. Who are the suppliers in the industry, what are their capabilities, and bargaining power?
3. What are the channels of distribution used by the industry? How effective are these channels?
 Macro Environmental Factors
1. Social environment includes the demographics and cultural dimensions that govern the relevant
entrepreneurial behavior. The structure, social status, and dynamics of the population at large, as well as
the people’s beliefs, taste, mores, customs, and traditions.
2. Political environment defines the governance system of the country or the local area of the business. It
includes all the laws, rules, and regulations on allowable and disallowable business practices.
3. Supply and demand forces mainly drive economic environment. The same factor drives the interest and
foreign exchange rates to fluctuate with the movement of the market forces.
4. Ecological environment includes all natural resources and the ecosystem that defines the habitat of man,
animals, plants, and minerals.
5. Technological environment makes or breaks competing participants in any industry. New scientific and
technological discoveries often lead to the launch and commercialization of new products with superior
attributes or to rendering the old ones obsolete.
VI. The Product and Service Offerings
The products/services must described by highlighting the features and attributes that would most appeal to
the target customers. The business plan should also prove that the products/services would accepted and
carried by the distribution channels. The company can also outline the products and services it will offer, and
may include pricing, product lifespan, and benefits to the consumer.
VII. The Enterprise Strategy and Enterprise Delivery System: Business Competitiveness
The business plan should expound on the Enterprise Strategy (ES) by mapping the competitive landscape
and by situating the enterprise and its competitors as to their strategies and chosen positioning’s.
The Enterprise Delivery System starts from the Input (resources mobilized), proceeds to the Throughput (the
transformation process where input is converted to output), and produces the Output (the products/services).
The Output are marketed to the customers (in the case of goods) or experienced by the customers (in the case
of services. Customer’s satisfaction level, profits generated and the performance of people from the transaction
are the Outcomes.

VIII. The Financial Forecasts and Expected Returns, Risks, and Contingencies
From the financial forecasts, the business plan should calculate the expected returns from the business. The
important return calculations are the following: a.) expected return on sales; b.) expected return on assets or
investments; and c.) expected return on stockholders’ equity
IX. Environmental and Regulatory Compliance
The business plan must articulate the laws, rules, and regulations governing the business, and the industry
that the enterprise is in. it should ascertain that all the necessary permits, licenses, and authority to use
proprietary intellectual capital either had secured or definitely secured. It should also assure the reader that all
the necessary local government ordinances and barangay ethics would followed by the enterprise.
K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
X. The Capital Structure and Financial Offering: Returns to Investors, Financiers, and Business Partners.
The tenth section of the business plan contains the capital structure and financial offering of the enterprise
including some discussions on who are the investors, the financiers, and the partners of the enterprise. It must
 Organizing and Structuring the Enterprise

The business plan must be able to estimate the capital required by the enterprise. The capital required would
dictated by the investment in the assets of the enterprise. The capital required would dictated by the investment in the
assets of the enterprise. These assets are composed of the following:

1. The current assets, which are short-lived assets. They are composed of cash, inventory, accounts
receivables, and other current assets.
2. The long-lived or fixed assets. They are composed of property, plant, and equipment.
3. The other assets. They are composed of organizational and pre-operating expenses.

The assets of the enterprise financed by its liabilities. These liabilities are composed of: (1) current liabilities such
as suppliers’ credit and other short-term credit; (2) long term debt; and (3) owner’s equity.

The way the financial package designed called the capital structure of the enterprise.

Business Organization

1. Sole Proprietorship – this is the simplest form of business, as it exclusively owned by only one individual. Generally,
the owner acts as the active manager. He may supply all the capital from his personal funds or from funds borrowed
from other parties.
2. Partnership – this is a business organization owned by jointly by two or more persons. All the owners agree as to their
capital contributions, division of the business profits and sharing of losses.
3. Corporation – this is an organization of not less than five persons, originally, whose capital are divided into shares of
stocks. A corporation has the following advantages:
a. Limited liability of stockholders- stockholders are liable to third parties for the losses of the corporation only to the
limit of their fully paid investment.
b. Greater source of capital- capital may raise by selling shares of stock to public.
c. Longer period of existence- Corporation may exist for a period no longer than 50 years. This is possible because
shares of stocks may sold to anybody without the necessity of dissolving the corporations.

Four types of Corporation

1. Stock Corporation- issues capitals stocks divided into shares (or proportions of the total capital).
2. Non-Stock Non Profit Corporation- organized to carry out a purpose other than generating profits for investors.
3. Close Corporation- has Articles of Incorporation that limit the ownership of issued stocks to at most 20 persons. There are
strict restrictions on the transfer of stocks. The stocks cannot listed in any stocks exchange nor any public offering of
shares be made.
4. Corporation Sole- a special form of corporation allowed by law, usually associated with clergy. The Corporation Sole is a
trusteeship that is set up for the purpose administering and managing the affairs, property, and temporalities of a church
or a group of clergy.
K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
A Merry Band of Men and Women

After establishing the enterprise, the entrepreneur must meticulously screen and hire men and women who foster
the cause and share the commitment of the enterprise. Good character and competence must be the two major criteria for hiring
people.

Sample Organizational Plan

Ron Lopex
General Manager

Allaine Lopez
Mini-restaurant &
Delivery Service Manager

Staff 1 Staff 2
Restaurant Assistant 1 Delivery Staff

Staff 3
Restaurant Assistant 2

Staff 4 Staff 5 Staff 6 Staff 7 Staff 8

Public Market Cashier Public Market Sales Manufacturing Manufacturing Manufacturing

The team must be fully equipped technically and managerially, and to learn fast. Ensure there is an employee
training and development program for the business. The owner will be in charge of training their employees. Each of the
staff members will also rotated to different positions as part of the training.

 About the customer

 About operations
 About competition
 About financing needs
 About teamwork

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
DIRECTION: Answer the following questions on a separate sheet of paper.

1. Make your own business plan using the different parts.

2. What do you need to start up a business? (give as many as you can then discuss each)

3. What are the things you need to consider in choosing the location of your business?

4. Which audience will you prioritize in terms of customizing the contents of your business plan?

5. If you were to set up a business venture what will be your personal purpose to doing so?

6. What type of business would you set up?

7. What would be the name of your business?

8. Create own personal enterprise mission statement?

9. What is your compelling business concept?

10. What would be your vision to your business five years after setting it up?

11. What name would you give to your business venture?

12. How you are going to advertise your business?

13. How will you reach your customer?

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 The Entrepreneur’s To-Do List

Make a to - do list that would help you go about establishing your own enterprise. Based on the topic that have
discussed in this module, there seems to be many tasks that you need to complete as future entrepreneur. Be as realistic
as possible in terms of what you can achieved in a day.
Start from a week’s worth of activities and then expand them to a month and so on. You can be as detailed as
possible (which should include time lines). For a more organize calendar, see sample below.
At the end of each day, check or cross out the task/s that you accomplished.

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
 IMPLEMENTATION OF A BUSINESS OPERATIONS PLAN

What is accounting?

Accounting is a service activity and called the language of business.

An art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events are in
part, at least, of a financial character and interpreting the result thereof.

Let us begin by assuming that an entrepreneur has set up ABC Corporation. At the beginning, ABC Corporation has
nothing. However, stockholders will be giving cash to the corporation. In exchange for the cash, equity shares will give to
the stockholders or the owners. The agreement between the stockholders and ABC Corporation is this; all of the profits
and losses of ABC Corporation will go to the stockholders in exchange for the cash they have given. Therefore, first
transactions is giving cash by and issuing of stocks to the stockholders. Second, ABC Corporation may need more money
and goes ahead to borrow this from banks or other financial institutions. The banks provide loans, which the corporation
would have to pay back in terms of principal payments and in terms of interest expenses. If we assume that ABC
Corporation is a manufacturing concern, and then there will be a third, source of funds and these are the raw materials
suppliers. From the cash of the corporation, it may want to invest in land, building, machinery, equipment, furniture,
fixtures, and vehicles.

Raw Materials
and Supplies
Suppliers’
credit

Bank
Loans

Land, Building,
Stockholders’
K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021
Machinery,
Equity CASH
Equipment, Furniture,
Fixtures, Vehicles
 Figure 7.1 (A)

It will then activate the factory by converting the raw materials into finished goods

1.2 Operate the Business

4MS OF IMPLEMENTATION OF BUSINESS OPERATION AND MANAGEMENT

K-12 ENTREPRENEURSHIP LEARNING MODULE NAGUILIAN SENIOR HIGH SCHOOL SY: 2020-2021