SENIOR HIGH SCHOOL

Entrepreneurship
Learner’s Home Task 5
Recognizing A Potential Market
Lesson 3: Screening Proposed Solutions to A
Market Need Based on Viability and
Profitability
READ THIS FIRST

The previous modules and home tasks were designed to help you come up with ideas and be
more aware of your potential market as well as your personal entrepreneurial skills. This home task will
try to help you decide which among your many brilliant ideas is the best one to try according to
profitability and viability.
What is profitability? It is the chance or probability that a business venture will yield a large
income. The larger the potential income, the greater the profitability.
Viability is how worthwhile is the business venture. Is it worth doing? If it is, then it’s viable. The
viability of the business also includes how knowledgeable you are about it because it is definitely not
worth going into a business
Using the two criteria, you’re going to choose, which among your great ideas you should pursue.

VIABILITY

You can use the example of a chart below in determining which among your ideas is the most
viable.

BUSINESS Your Your Ease of

Your Skills Uniqueness Total
IDEAS Knowledge Experience Entry
Dress shop 1 3 1 2 1 8

Pet shop 3 3 3 2 1 12

Fish stall 2 2 3 3 2 12

Party planner 1 1 2 3 1 8

Auto repair 2 3 3 2 1 8

 If you have more than five business ideas in your shortlist, you may add additional
spaces but the list should not be more than 10.
 Take each business idea and rate it on a scale of 0 – 3 in all criteria appearing in the
succeeding columns (your knowledge, your experience, your skills, ease of entry, and
uniqueness). Use a rating scale of 0 to 3; with 0 meaning none, 1 below average, 2
average, and 3 above average.
PROFITABILITY

To determine how profitable your business is going to be you have to make projected (estimated)
sales and expenses. Remember that the formula for profit is sales minus expenses.

Projected Projected
Projected
BUSINESS Monthly Monthly
Monthly
IDEAS Expenses/ Income/
Sales
Costs Profit
Dress shop 65,000 32,000 33,000

Pet shop 90,017 61,013 29,004

Fish stall 73,000 34,116 38,884

Party planner 53,000 22,300 30,700

Auto repair 150,000 96,714 53,286

THE BEST CHOICE

Based on the above, the best choice is a fish stall because it scored the highest in the viability
analysis and the profitability analysis.

ACTIVITY

Make a viability and profitability analysis of the business ideas you listed down in the previous
modules.
REFERENCES

Bureau of Small and Medium Enterprises Development. 2015. 2015 Your Guide to
Starting a Small Enterprise. Makati City: Department of Trade and Industry.
https://dtiwebfiles.s3.ap-southeast-1.amazonaws.com/uploads/2019/11/2015
-Your-Guide-to-Starting-a-Small-Enterprise.pdf.

Morato, Eduardo A. 2015. A Trilogy On Entrepreneurship. Philippines: Eduardo A.

Morato, Jr.