9

COMPENDIUM OF NOTES IN STVEP - ENTREPRENEURSHIP

GRADE 9 – 3rd QUARTER

DURATION THIRD QUARTER

(8 weeks)

UNIT OF COMPETENCY Develop a Business Plan

MODULE TITLE Developing a Business Plan

WEEKS MELCS-3: Developing a Business Plan

1-3
LO 1. Organize and Construct the Main Parts of a Business Plan

This module covers the knowledge, skills and attitudes required in developing a workable
business plan.

Words to study

 Business plan - means any plan that works for a business to look ahead.
 Sustainability is the support for a business on environmental issues.
 Addendum is a document or information attached or added to clarify, modify or support the
information in the original document or written work.
 Target Market refers to a group of persons who use and patronize the products/services that
specifically fit their needs/wants.
 Market Trends are used to provide strategic information and leads that will aid and sustain
business development.
 Market size is the number of buyers and sellers in a particular market.
 Business Risk is the probability inherent in a firm’s operations and environment (such as
competition and adverse economic conditions) that may impair its ability to provide returns on
investments.

PARTS OF A BUSINESS PLAN

I. THE PROBLEM/NEED

This pertains to the description of the problem/need being addressed to, as well as the
reasons/rationale why the problem/need must be addressed by the business and the descriptions
on how the business has solved the problem/need.

II. STATEMENT OF VISION, MISSION AND VALUES

VISION
It is a description or statement of what the proponent sees if the problem/need is solved.
MISSION
It is a clear description of goals and objectives that presents practical steps to achieve the vision.
VALUES
It is a clear statement of values critical to the culture, integrity and activities of the business.

III. THE MARKETING PLAN

A. Research and Analysis

It is a description of the target market, market size, competition, market share and market trends.

B. Marketing Strategies
This includes the Four P’s – price, promotion, product and place. The Four P’s all work together to
reinforce the positioning strategy which is based upon what your target customer wants or needs.
 IV. PRODUCTION AND TECHNICAL PLAN

V. ORGANIZATIONAL/MANAGEMENT PLAN

This plan includes the members of the team and the team’s contribution to the business.
Here is an example of an organizational/management chart:

WEEKS MELCS-3: Developing a Business Plan

4-8
LO 1. Organize and Construct the Main Parts of a Business Plan (Part 2)

This module covers the knowledge, skills and attitudes required in developing a workable
business plan.

SECTION V
I. SUSTAINABILITY

I. Financial Plan
“Where the money comes from and where it goes.”
This section of the business plan is the key area, where people will judge how competent you are
as an entrepreneur. It must be well written, concise and sufficiently documented.
Example of financial plan:
A. Anong Sarap Bakery, the initial capital is P 40,000.00. There will be five members. Each of the
members shall share Php 8,000.00.
B. Monthly Expenses

Table 1
MONTHLY EXPENSES FIXED COST
Rental PhP3,000.00
Salaries:
Baker 3,500.00
Helper 3,000.00
Roller 450.00
Mixer 900.00
Slicer 200.00
Tools & Utensils 175.00
(A)TOTAL FIXED COST PhP 11,225.00
 VARIABLE COST (Month)
Raw Materials
Flour PhP 3,000.00
Butter/Lard 550.00
Yeast/Leavening 120.00
Egg 1,000.00
Flavoring 500.00
Sugar 1,000.00
Telephone Bill 600.00
Electricity 1,000.00
LPG 1,000.00
Water 500.00
Transportation 1,000.00
Miscellaneous 2,000.00
(B)TOTAL VARIABLE COST PhP 12,370.00
(A+B) TOTAL MONTHLY COST Php 23,595.00

Table 1 shows the projected expenses per month during the initial year of operation. It is noted
that fixed cost is greater that the variable costs.

Table 2

Table 3
MONTHLY PROJECTED COST REVENUE

Table 4
 Table 4 shows that the months from August to October are considered non-peak months. It is
assumed that the business grows by its monthly profit because of old and new consumers of the
products. According to the table shown above, August to October are non-peak months (5% loss from
previous month is computed) whereas June, November and December are peak months (for June, 10%
increase of sales from previous month and 20% for the latter months).

Break-Even
Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)
When TR is greater than FC and VC means the business is earning profit.
When TR is less than the FC + VC means the business is losing.
When TR = then FC + VC, the business is break-even.

Tables 2 & 3 showed the projected cost and revenue by month. Based on the table the Total
Revenue is greater than the combined fixed and variable cost. It indicates that Anong Sarap Bakery has
the great potential of generating profit.

Examples of Projected Income Statement and Cash flow

Table 4
ANONG SARAP BAKERY
PROJECTED INCOME STATEMENT
FOR THE YEARS
ENDED 2008 AND 2008 2009
2009

REVENUE PhP 1,076,355.31 PhP 1,237,808.60

Cost /Expenses PhP 376,245.98 PhP 432,682.87

Projected Net
PhP 700,109.33 PhP 805,125.73
Income

Projected Income for the year is expected to by at least rise by 15%

Table 5
CASH FLOW 1ST QUARTER OF 2008
CASH FLOW 1ST
January February March
QUARTER OF 2008

Beginning Cash Balance P 40,000.00 P 60,310.00 P 81,127.75

Cash Inflows

Net Income P 43,905.00 P 45,002.63 P 47,252.76

P 83,905.00 P 105,312.63 P 128,380.51

Cash Outflow

Fixed Cost P 11,225.00 P 11,225.00 P 11,225.00

Variable Cost P 12,370.00 P 12,959.88 P 14,169.12

P 23,595.00 P 24,184.88 P 25,394.12

Ending Cash Balance P 60,310.00 P 81,127.75 P 102,986.39

 I. For the initial operation of Anong Sarap Bakery, the investments shall come entirely from
its 5-member team sharing equally. Each will have 20% capital share.
II. The initial source fund may be generated by special fund - raising activities from the school.
This can also be coursed through the YECS for the students to invest.
III. Based on our projection the business will earn 2.5% on the first month and 5% on the
second month. Having this as a continuing trend, it is expected that after a year, the 15%
return on investment is highly feasible.
II. SOCIAL IMPACT
This part should enumerate the impact of the business activity to its employees, consumer and
the community as well. Social impact should also emphasize social responsibility to sound environment
and sanitation practices.
The impact should be stated in a clear and concise statement that is anchored on the mission,
vision and values of the business.

Social Impact Sample Form

1. Anong Sarap Bakery aspires to be the most admired cooperative bakeshop in Marikina City. Its
unique feature is the cooperative spirit among its incorporators. In the next years to come we
want this bakery to be operative inside the ERVHS Campus, where students can have their on-
the-job-training (OJT) and they can invest in the future.
2. Anong Sarap Bakery will conduct activities that would promote spirit of entrepreneurship
through active participation in community and school activities since they are the number one
clientele of the bakeshop.
3. Our target is to have a bakeshop where students through their on-the-job-training (OJT)
program can work with. It vows to support the training needs of the school in terms of baking,
marketing, back office operations and food service. Anong Sarap Bakery considers itself as
partner in progress of the community and school.

References:

https://www.google.com.ph/search?hl=en&authuser=0&tbm=isch&source=hp&biw=1708&bih=830&ei=IQC5X9

https://www.google.com.ph/search?q=BUSINESS+PLAN&tbm=isch&ved=2ahUKEwiN3PeYypPtAhVrxYsBHcvfBOAQ2-
cCegQIABAA&oq=BUSINESS+PLAN&gs_lcp=CgNpbWcQAzIFCAAQsQMyBQgAELEDMgUIABCxAzIFCAAQsQMyBQgAELED
MgUIABCxAzICCAAyAggAMgIIADICCAA6BAgAEEM6BwgAELEDEENQ-
pkJWOeyCWC4tgloAHAAeACAAXKIAZ4KkgEDNy42mAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=MAC5X42E
BuuKr7wPy7-TgA4&authuser=0&bih=830&biw=1708&hl=en#imgrc=nIvDYmPOJw0aKM&imgdii=3CA3BMZTsIuc_M

https://www.google.com.ph/search?q=RESTAURANT+PHILIPPINES&tbm=isch&ved=2ahUKEwjM9syDzJPtAhUBeZQKHes
xBtMQ2-
cCegQIABAA&oq=RESTAURANT+PHILIPPINES&gs_lcp=CgNpbWcQAzICCAAyAggAMgIIADIGCAAQBRAeMgYIABAFEB4yBg
gAEAUQHjIGCAAQBRAeMgYIABAFEB4yBggAEAUQHjIGCAAQBRAeOgcIABCxAxBDOgQIABBDOgQIABAeUORoWOyKAWD
pjAFoAHAAeACAAYwBiAHzCZIBBDIuMTCYAQCgAQGqAQtnd3Mtd2l6LWltZ8ABAQ&sclient=img&ei=HAK5X8z4DYHy0QT
r45iYDQ&authuser=0&bih=830&biw=1708&hl=en#imgrc=X10_7NGZDBS8PM

https://blog.hubspot.com/marketing/sample-business-plans

https://www.google.com.ph/

Entrepreneurship-Y3Module(1).pdf
 PRE-TEST IN TVE 9 (Entrepreneurship)

SY 2020-2021

NAME : ____________________________ GRADE & SECTION: __________ SCORE: ________

Let us find out how much you already know.

A. Read and understand the items being described below. Choose the letter of the correct answer and write it
in your quiz notebook.

a. Addendum
b. Market Trends
c. Mission
d. Target Market
e. Sustainability
f. Vision

1. It refers to a group of persons who use and patronize the products/services that specifically fits their
needs/wants.
2. These are documents or information attached to clarify or support the information in the original
document.
3. It is a clear description of goals.
4. It is a description of what the proponent sees if the problem is solved.
5. It means support for business in environmental issues.

B. Multiple Choice. Read and understand the following statements then select the letter of the correct answer
and write it in your quiz notebook.

6. It is the detailed description on how the business is implemented.

a. evaluation plan
b. management plan
c. operational plan
d. organizational plan
7. It is the process of setting goals for a particular business undertaking done through a step-by-step process.
a. Business planning
b. Feasibility planning
c. Marketing plan
d. Production plan
8. It gives the information on financial concerns and stability of the plan.
a. Financial Plan
b. Marketing Plan
c. Organizational Plan
d. Production Plan
9. Business production and services are varied based on____________.
a. innovation
 b. lifestyle of the people
c. needs and wants
d. science and technology
10. This is the center of interest in a given garment.
a. balance
b. emphasis
c. harmony
d. proportion
11. It is part of a business plan which can be both within or beyond the control of the entrepreneur.
a. mission
b. objectives
c. risk
d. vision
12. This plan is a course of action for obtaining and using the money that is needed to implement the goals of
the business organization.
a. Financial
b. Marketing
c. Organizational
d. Production
13. It is the place where we can buy different goods from one or a number of vendors.
a. church
b. market
c. pack
d. school
14. The 4 P’s of a good marketing plan are.
a. Package, Place, Plan, Price
b. Plan, Place, Product, Price
c. Place, Price, Product, Promotion
d. Price, Place, Promotion, Purchase
15. It is an outline of your business.
a. Business Plan Proper
b. Executive Summary
c. Overview of the Business
d. Personal Details
 SHORT QUIZ IN TVE 9 (Entrepreneurship)

SY 2020-2021

NAME : ____________________________ GRADE & SECTION: __________ SCORE: ________

A. Multiple Choice. Read and understand the following questions then select the letter of the correct answer
and write it in your quiz notebook.

1. What is the support for a business on environmental issues?

a. Addendum
b. Sustainability
c. Business Risk
d. Market Size
2. What do you call the number of buyers and sellers in a particular market?
a. Addendum
b. Sustainability
c. Business Risk
d. Market Size
3. What is the document or information attached or added to clarify, modify or support the information in the
original document or written work?
a. Addendum
b. Sustainability
c. Business Risk
d. Market Size
4. What are used to provide strategic information and leads that will aid and sustain business development?
a. Business Risk
b. Market Trends
c. Target Market
d. Addendum
5. What refers to a group of persons who use and patronize the products/services that specifically fit their
needs/wants?
a. Business Risk
b. Market Trends
c. Target Market
d. Addendum
 POST-TEST IN TVE 9 (Entrepreneurship)

SY 2020-2021

NAME : ____________________________ GRADE & SECTION: __________ SCORE: ________

Let us find out how much you already know.

A. Read and understand the items being described below. Choose the letter of the correct answer and write it
in your quiz notebook.

g. Addendum
h. Market Trends
i. Mission
j. Target Market
k. Sustainability
l. Vision

1. It refers to a group of persons who use and patronize the products/services that specifically fits their
needs/wants.
2. These are documents or information attached to clarify or support the information in the original
document.
3. It is a clear description of goals.
4. It is a description of what the proponent sees if the problem is solved.
5. It means support for business in environmental issues.

B. Multiple Choice. Read and understand the following statements then select the letter of the correct answer
and write it in your quiz notebook.
6. It is the detailed description on how the business is implemented.
e. evaluation plan
f. management plan
g. operational plan
h. organizational plan
7. It is the process of setting goals for a particular business undertaking done through a step-by-step process.
e. Business planning
f. Feasibility planning
g. Marketing plan
h. Production plan
8. It gives the information on financial concerns and stability of the plan.
e. Financial Plan
f. Marketing Plan
g. Organizational Plan
h. Production Plan
9. Business production and services are varied based on____________.
e. innovation
f. lifestyle of the people
 g. needs and wants
h. science and technology
10. This is the center of interest in a given garment.
e. balance
f. emphasis
g. harmony
h. proportion
11. It is part of a business plan which can be both within or beyond the control of the entrepreneur.
e. mission
f. objectives
g. risk
h. vision
12. This plan is a course of action for obtaining and using the money that is needed to implement the goals of
the business organization.
e. Financial
f. Marketing
g. Organizational
h. Production
13. It is the place where we can buy different goods from one or a number of vendors.
e. church
f. market
g. pack
h. school
14. The 4 P’s of a good marketing plan are.
e. Package, Place, Plan, Price
f. Plan, Place, Product, Price
g. Place, Price, Product, Promotion
h. Price, Place, Promotion, Purchase
15. It is an outline of your business.
e. Business Plan Proper
f. Executive Summary
g. Overview of the Business
h. Personal Details
 ACTIVITY NO. 1 IN TVE 9 (Entrepreneurship)

SY 2020-2021

WEEK 1 - 3

NAME : ____________________________ GRADE & SECTION: __________ SCORE: ________

The Business Plan

Directions: Recall your previous lesson on the parts of a business plan. Then fill in the parts of the business plan in the
illustration below.

Parts of a
Business
Plan
 Prepare your own business plan according to your chosen business following the given format.

(Week 1)

Business Name: _______________________________________________________

Location: _______________________________________________________
Name of Owner: _______________________________________________________

Introduction: ____________ is a registered business engaged in ____________________ owned by

______________________________________________

Business Goals are as follows:

a. The operation started on ____________________________________

b. The location could be reached by ____________________________________
c. The business could be expanded by ____________________________________

Table of Contents

Section 1: The Business

1. Description of the Business

The business is engaged in the distribution of or production, or of servicing
customers._________________________________________________________________________________
______________________________________________________________________________

2. Product/Service
The product/service is __________________________________________________

3. Market
Production will be distributed in (mention primary and secondary market). The clients belong to (description of
the socio-economic level). The product is bought by clients for the following reasons:
__________________________________________________________________________________________
________________________________________________

(Week 2)

4. Location of the business

The ________________________ business is located at _______________________
It can easily reached by _________________________________________________

5. Competitions are as follows:

__________________________________________________________________________________________
________________________________________________
(State the name of the company and other relevant facts such as size and possible sales.)

6. Price
The current price is ________. It is derived from the following factors: (production costs and marked up costs)
______________________________________________.
 7. Marketing Strategies
The product will be distributed in the following manner:
__________________________________________________________________________________________
________________________________________________

(Week 3)

8. Management
The management group is composed of the following (name, position, responsibility and qualification)
__________________________________________________________________________________________
________________________________________________

9. Personnel
The personnel needed are the following (enumerate the type of work and their qualifications)
__________________________________________________________________________________________
________________________________________________

Summary of Section 1

_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
______________________________________________________________
 ACTIVITY NO. 2 IN TVE 9 (Entrepreneurship)
SY 2020-2021
WEEK 4 - 8

NAME : ____________________________ GRADE & SECTION: __________ SCORE: ________

SECTION II: Financial Data

1. Sources and application of funding:

Secure financial assistance from __________________________________________________________
For the following purposes ______________________________________________________________
____________________________________________________________________________________
Using the following collaterals ___________________________________________________________
____________________________________________________________________________________

2. Capital Equipment List

The capital and equipment lists are the following:
____________________________________________________________________________________
Briefly describe the equipment and their uses. Include processes employed in the
production)_________________________________________________________________________________
_______________________________________________

3. Balance Sheet
This is a statement of the financial condition of an enterprise at a given point in time usually only a focus,
quarterly, semi-annually or annually. It shows the owner how money has been invested and the accrued profit
or losses.

(Name of Business)
Balance Sheet
June 30, 20XX

ASSETS
Cash P xxx,xxx.xx
Account Receivable xxx,xxx.xx
Supplies xxx,xxx.xx
Equipment xxx,xxx.xx
TOTAL ASSETS P xxx,xxx.xx

LIABILITIES AND OWNER’S EQUITY

Accounts Payable P xxx,xxx.xx
Bank Loan xxx,xxx.xx P xxx,xxx.xx

Capital P xxx,xxx.xx
Add: Net Income xxx,xxx.xx
Total xxx,xxx.xx
Less: Drawing xxx,xxx.xx xxx,xxx.xx

TOTAL LIABILITIES AND OWNERS EQUITY P xxx,xxx.xx

4. Break-even Analysis
(It is a tool used by an entrepreneur in solving managerial problems). It compares the total resources (TR) with
the total cost (TC

Break-Even

Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)

When TR is greater than FC and VC means the business is earning

profit.

5. Income Projection (Profit-Loss Statement)

a. Detailed by month (for the first year)

(Name of Business)
Income Statement
For the Month Ended June 30, 20XX
REVENUES
Bank Loan P xxx,xxx.xx

OPERATING EXPENSES
Salary Expense P xxx,xxx.xx
Rent Expense xxx,xxx.xx
Supplies Expense xxx,xxx.xx
Total Operating Exp. xxx,xxx.xx

NET INCOME P xxx,xxx.xx