Entrepreneurship

Quarter 1– Module 3:
Developing A Business Plan
Entrepreneurship – Grade 11/ 12
Alternative Delivery Mode
Quarter 1 – Module 3: Developing A Business Plan
First Edition, 2020

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 Entrepreneurship
Quarter 1– Module 3:
Developing a Business Plan
Introductory Message
For the facilitator:

Welcome to the Entrepreneurship – Grade 11/12 Alternative Delivery Mode

(ADM) Module on Starting and Operating A Simple Business!

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or
facilitator in helping the learners meet the standards set by the K to 12 Curriculum
while overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this also
aims to help learners acquire the needed 21st century skills while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that will help you in guiding the learners.

As a facilitator, you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Furthermore, you are expected to encourage and
assist the learners as they do the tasks included in the module.
For the learner:

Welcome to the Entrepreneurship – Grade 11/12 Alternative Delivery Mode

(ADM) Module on Starting and Operating A Simple Business!

Planning is very vital in all aspects of a business. This will serve as a

blueprint of your business or enterprise because without planning, your business
might get lost. Challenges are always in the air and unavoidable. A well-written
plan is great to face these challenges and support your business. This module will
discuss the parts of a business plan and a workshop on how to do it.

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an
active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will 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. If you get all the answers
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 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 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 to process
what you learned from 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 a 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.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

This is a list of all sources used in developing

References
this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are not
alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!
 What I Need to Know

This module is designed and written to help you acknowledge the

significance of writing and implementing a business plan for the success of a
business or enterprise.

At the end of the lesson you should be able to:

1. select the best product or service that will meet the market need.
(TLE_ICTAN11/12PC-la-1)

a. develop a business plan.

What I Know

Writing and preparing a business plan is very important before putting up

any business. Do you have any idea about it? Let’s see what you already know
about this lesson. Write your answers in your notebook.

Matching Type. Match column A with column B. Write only the letter that
corresponds to your answer.

COLUMN A COLUMN B

1. This is the last part to be accomplished in a. Net Income

the plan. b. Cost of Goods Sold
2. This is the part of the business plan where c. Income Statement
one finds employee’s salaries. d. Cash flow Statement
3. This is the part of the business plan where e. Balance sheet
one finds product features. f. Market Plan
4. This is the part of the business plan where g. Financial Plan
one finds projected income statement. h. Product Plan
5. This is the part of the business plan where i. Management and
one finds the sales projection. Organization
j. Executive Summary
 6. This is the financial statement that reports a
company’s assets, liabilities, and owner’s
equity within a given period.
7. This financial statement shows the flow of
cash (inflow and outflow).
8. This financial statement shows you how
profitable your business within a given
period.
9. These are the materials cost needed in
production of goods like fabric and machine.
10.The term used when we deduct expense from
gross profit.

Lesson
Developing a Business
3 Plan
Entrepreneurs who decided to enter any business ventures must have
business plan on their hand to guide them throughout the process. Business plan
is written prior to setting up an enterprise.

Entrepreneurs must plan their business carefully because the success of the
business depends on it. Different business plans are prepared for different motives.
Business plans do not serve only one master. First, it serves the entrepreneur who
must set the guiding system of the business. Second, it serves the investors and
conscious financiers. Lastly, it serves the managers and staff in the organization so
that they will be knowledgeable about the process.

What’s In

Let us see if you still remember our last lesson. Write your answers in your
notebook. Write only the letter that corresponds to your answer.

1. Which of the following refers to a formal written document which consists of

business goals, the steps or ways on how to attain the goals, and the time
frame needed to achieve these goals?

a. Business Opportunity c. Feasibility Study

 b. Business Plan d. Market Plan

2. How many parts does a business plan have?

a. 3 b. 4 c. 5 d. 6

3. Which part of the business plan indicates the mission and vision statements of
the business?

a. Executive Summary

b. Financial Plan

c. Management and Organization

d. Product/Service Plan

4. Which part of the business plan contains the start-up cost requirements
needed in the business?

a. Executive Summary

b. Financial Plan

c. Market Plan

d. Management and Organization

5. Which part of the business plan includes the demand and supply vis-à-vis
competitors?

a. Executive Summary

b. Market Plan

c. Management and Organization

d. Product/Service Plan

6. Which part of the business plan includes the proposed business and business
model?

a. Executive Summary

b. Market Plan

c. Management and Organization

d. Product/Service Plan

7. In what agency a sole proprietorship type of business must register?

a. Department of Foreign Affairs

b. Department of Trade and Industry

 c. Security and Exchange Commission

d. Cooperative Development Authority

8. What does BIR stand for?

a. Bureau of Intensive Room

b. Bureau of Internist Regulation

c. Bureau of Internal Revenue

d. Bureau of Instruction Resources

9. What does DTI stand for?

a. Department of Trade and Industry

b. Department of Tuna Industry

c. Department of Trade Incorporation

d. Department of Tourism International

10. Why do we need to plan our business?

a. To attract possible clients/customers

b. To guide you in your business throughout the process

c. To encourage possible investors

d. All of the above

Notes to the Teacher

This module is for students to learn how to do a simple business plan.
 What’s New

Situational Analysis:

In an Entrepreneurship class, the teacher gave the students a role-playing

activity and it is about promoting their own product/service. The teacher divided
the class into two groups and gave 5 minutes to prepare.

While the students are busy, the teacher got a chance to observe the two
groups. The teacher noticed that the first group was undisciplined and
disorganized. Some were chatting with their classmates and some were just using
their mobile phones. The leader was very upset. The second group was very
attentive and cooperative. The leader planned the activity well while the members
are listening attentively.

Which group do you think will perform better? Why do you say so? Write
your answer in your notebook.

What is It

As a future entrepreneur, organizing and planning your business is the first

step to undertake, below is a simple format of business plan (Edralin, 2016)

BUSINESS PLAN

I. Executive Summary

II. Management and Organization

III. Product/Service Plan

IV. Market Plan

V. Financial Plan
 In this module, you will make your own business plan. First, think of a
business you wanted to have and/or can sustain the needs of your community.
After you decide the kind of business you want to establish, you are now ready to
write a business plan.

I. EXECUTIVE SUMMARY

Based on the discussion from the last module; this is the last part to be
accomplished because it will summarize all the information and data gathered from
Parts II-V of the business plan.

What are the information needed?

 Description of the proposed business and business model

 Description of the market opportunity to capture, or market problem the
business solves
 Reasons why this is an attractive business opportunity
 Key distinctions or differentiators of the business versus competitors
 Overview of the sales, marketing, and operations strategy and plan
 Description of the executive plan and timeline
 Overview of projected financials containing revenues, costs, profits, and
assumptions

II. MANAGEMENT AND ORGANIZATION

What are the information needed?

 Company Name, Logo and Address

 Vision and Mission Statements
 Key Personnel
 Workforce and Support Personnel
 Organizational Chart
 Ownership, Capitalization, Compensation and incentives
 External Management Support

III. PRODUCT/SERVICE PLAN

What are the information needed?

 Purpose of the product/ service

 Product’s unique features
 Material requirements and sources of supply
 Equipment that will be used to manufacture the product/ render the service
 Production/ Service Process and Controls
 Distribution logistics
 Regulatory and other compliance issues

IV. MARKET PLAN

What are the information needed?

 Market Analysis which includes demand and supply vis-à-vis competitors

 Marketing and Sales Strategies
 Product/Service Characteristics or features
 Pricing Policy
 Sales Projections

V. FINANCIAL PLAN

What are the information needed?

 Start-up costs requirements

 Financial projections
 Breakeven analysis
 Budget
 BUSINESS PLAN
VIA’S
FASHIONABLE
FACE MASK

I. EXECUTIVE SUMMARY

Via’s Fashionable Face Mask will offer unique, fashionable, and has good
quality face masks that will accommodate the needs of the people nowadays due to
COVID-19 in Bataan. Historical data show that there is an increasing demand for
face masks among the towns of Bataan. However, the existing 5 big competitors are
not able to meet such demand resulting to a big gap. This means that there is a big
unmet demand of the market in face masks. Our goal is to fill something to meet
the desired demand. One of our primary strategies is to offer customers variety of
options for choosing their own face masks. Fashionable face masks will be offered
in various colors and designs to give customers options. Customized face masks
will also be offered to some institutions like schools and offices. Our business will
be initially operating as a home-based enterprise and will use social media
platforms (like Facebook or Instagram) to advertise the colors and ready-made
designs of the face masks. Customers may have the options to pick up the products
or have it delivered at their convenience. Via’s Fashionable Face Mask has several
unique and competitive designs that will be used to its advantage to penetrate
market.
 Initial capitalization for the business is Php 27,000 good for one-month
expense. Expected revenue for 1 year is Php 290,280 while total cost for goods sold
amounted to Php 158,580, while the total cost of goods sold amounted to Php
158,580.

Notes:
*Capitalization is based on the start-up summary total qty. per month table.
*Revenue is based on the total peso in year 1 in sales projection table.
*The data for cost of goods sold can be seen at projected income statement table.

II. MANAGEMENT AND ORGANIZATION

A. Company Name: Via’s Fashionable Face Mask

B. Logo:
C. Address: #5380 Zamora St. Brgy. Poblacion, Mariveles, Bataan
D. Vision Statement: Via’s Fashionable Face Mask will be the leading provider
of unique, fashionable, and high-quality face masks that will accommodate
the needs of the people in Bataan.
E. Mission Statement: Via’s Fashionable Face Mask is a socially responsible
enterprise providing high-quality, unique, and reasonably priced fashionable
face masks which caters health needs of the people in Bataan.
F. Key Personnel: Owner/Manager
G. Work Force and Support Personnel: Sewer, helper
H. Organizational Chart:
 Duties and Responsibilities:

1. Owner/ Manager – He/she oversees and manages the business. He/she

is responsible and accountable for every decision or action for the
business.
2. Advisory Council – They advise the owner in managerial aspects. They
must be knowledgeable on how the business runs. This position is on
call only.
3. Sewer – He/ She creates and makes the product.

I. Ownership: Sole Proprietorship

J. Capitalization: Php 27,000

K. Compensation and Incentives:

Employees’ Salaries:

Advisory Council – P500 (monthly consultation)

Sewer – P6,850 monthly (P10 x 685 pcs.) (weekend work)

Incentives:

13th month pay

Cash bonus

L. External Management Support: Parents

III. PRODUCT PLAN

A. Purpose of the Product

Via’s Fashionable Face Mask will offer the residents of Bataan, a unique,
good quality and variety of options for choosing their own face masks. There are
different colors to choose from. We can cater schools if ever they decide to have
color coding per grade level. For offices, we can provide customized face mask like
printing the name of the company or any designs they want.

B. Products Unique Features

Via’s Fashionable Face Mask shows its unique features. The first is the wide
variety of colors that customers can choose from. They can freely select the color
they want. The second is the printed designs of face mask. This is best for some
teenagers who are fashionable.
 Below are the samples of face masks:

C. Material and Equipment Requirements and Sources of Supply

The material requirements and their sources are as follows:

MATERIALS SOURCES
Neoprene Fabric Fabric store in City of Balanga, Bataan
Sewing Machine Sewing supplies in City of Balanga,
Bataan
Sewing supplies and tools Sewing supplies in City of Balanga,
Bataan
Plastic for packaging Plastic store in City of Balanga, Bataan
Table 1 (Material requirements and their sources)

D. Production Process and Controls that will be used to manufacture the

product

Below is the process on how to make a face mask:

1. Create a pattern.
a. Draw patterns in different size (Small, Medium, Large and Extra Large).
b. Cut the pattern.
2. Transfer the pattern to the fabric, and then cut it.
3. Sew the cut cloth.
4. Trim the excess thread.
5. Pack the face mask in a clean plastic bag.
6. Add label. Print in small square paper the name and logo of the business.
Indicate also the sizes.

Neoprene mask is best used as a material for washable face mask. Neoprene
(also polychloroprene) is a family of synthetic rubbers that are produced by
polymerization of chloroprene (Wikipedia). This fabric is water resistant that can
protect us from the virus.

E. Distribution Logistics

Via’s Fashionable Face Mask initially operates as a home-based enterprise

and uses social media platforms like Facebook and Instagram to advertise the
colors and designs of the washable face masks. Customers may choose if they will
pick-up the item or it will be delivered at their convenience. For delivery, there
should be handling fee (Bataan area only) and shipping fee (outside Bataan). Fees
will be shouldered by the buyer. For bulk orders, (minimum of 100pcs.) free
shipping fee or handling fee is applied. Due to the crisis today, the washable face
masks will not be displayed in bazaars or school fairs.

F. Regulatory and Other Compliance Issues

Via’s Fashionable Face Mask will be registered as a single proprietorship

type of business to the Department of Trade and Industry (DTI). A barangay
clearance will also be secured before applying for a mayor’s permit to operate as a
home-based business micro enterprise. The Bureau of Internal Revenue (BIR)
registration will also be done after getting all the necessary registration documents
and permits from DTI, barangay, and mayor’s office.

IV. MARKET PLAN

A. Market Analysis which includes demand and supply vis-à-vis competitors

Historical
Total Supply: Previous 5 years Face mask sold by Total
Data
Demand the competitors per year Supply
(5years)
A B C D E
YEAR 1 15,834 1,114 500 2,065 950 1,962 6,591
YEAR 2 18,605 1,306 600 2,530 1,300 2,035 7,771
YEAR 3 23,400 1,438 700 3,000 1,400 2,480 9,018
YEAR 4 25,600 2,100 800 3,113 1,500 2,951 10,464
YEAR 5 100,000 8,350 1,200 11,580 2,100 8,635 31,865
Table 2 (Market Analysis)
The table above shows that there is an increasing demand for washable face masks among
the residents of Bataan. However, the existing big five competitors in Bataan cannot sustain
the needed demand resulting to a big gap. This shows that there is a big unmet demand of
the market in washable face masks.
B. Marketing and Sales Projection

Marketing Strategy

A competitive and encouraging campaign will aim to increase the visibility

for Via’s Fashionable Face Mask. This will focus on the customer’s desire to choose
colorful and printed washable face mask. Via’s Fashionable Face Mask will use
different channels to communicate this message.

a. Social Media – During this time of crisis, posting in social media is the
best way to communicate with other people. Via’s Fashionable Face Mask will be
active in social media like Facebook and Instagram to showcase and advertise the
product. This will be used in every transaction.

b. Online Resellers - Via’s Fashionable Face Mask will try to reach out
people in social media who are reselling products. As we have seen, it has a big
potential to widen the market. A linkage will be established so that they become
aware of the washable face mask.

C. Sales Strategy

Customers are always after their convenience. Via’s Fashionable Face Mask
sales strategy will assure that ordering and buying face mask is very easy, exiting,
and a great experience. In order to do this, the enterprise will create a website and
a Facebook page where customers can use to order and buy face mask at their
convenience. New designs will be uploaded from time to time to notify customers.
Electronic payment like bank-to-bank transfer and other remittance centers to
promote cashless transaction.

With these sales strategies, the company develops the customer’s excitement
to order and convenience to pay at their own pace.

D. Product Characteristics or Feature

Via’s Fashionable Face Mask has several competitive features that will be
used to its advantage to achieve market penetration.

 Variety of colors – Customers will be offered 20 different colors of face mask

to choose from. Colors are divided into 2; pastel and dark colors. Pastel
colors include light colors such as yellow, pink, white, and others while dark
colors consist of black, navy blue, army green and so on.
 Variety of prints – Customers will be offered with different designs. The
printed designs are also divided into two; for men and for women. These
 printed designs are best for teenagers and for the adults who always follow
the trends.
 Affordability – Because of the crisis today, many of us have limited income
but the urgent need of wearing face mask is also a must. It is favorable for
the customers to have access to inexpensive yet high-quality washable face
masks.

E. Pricing Policy

Via’s Fashionable Face Mask will adopt the differing price based on the size
and the design policy. As such, below is the pricing scheme that will be adopted:

Retail Price:
Size of Face Masks Price (Peso)
Small (fits to kids 3-7 yrs. old) 35
Medium (fits to teens 8-14 yrs. old) 40
Large (15 yrs. old above) 45
Extra Large (oversized) 50
Table 2.1 (Pricing Scheme-Retail Price)

Reseller Price:
Size of Face Masks Price (Peso)
Small (fits to kids 3-7 yrs. old) 31
Medium (fits to teens 8-14 yrs. old) 34
Large (15 yrs. old above) 37
Extra Large (oversized) 40
Table 2.2 (Pricing Scheme-Reseller Price)

F. Sales Projections

Table 2.3 (Sales Projections)

(Note: In sales projections, from the word itself projections, meaning, you are just
anticipating possible sales or income for 5 years. You can do this by the help of
information gathered from other competitors offering the same products. But again,
during this time of crisis, just use the resources you have.)
Notes:
*Qty./month means Quantity per Month.
*For year 1 computation of qty.:
Qty per month multiply 12 (no. of months in 1 year)
=150 x 12 = 1800
Formula used:
(Qty for Year 1 multiply the given percentage) plus Qty. for Year 1 = Qty. for Year 2
= (1800 x .10) +1800
=180 + 1800
= 1980 Qty. for Year 2
*For peso computation:
Qty. for Year = Qty. multiply by reseller price
=1800 x 31
=55,800 Price for year 1
*Do the same steps for Quantity Year 3-5.
*The increase of qty. per year from years 2-5, is 10%

G. Market Analysis Summary

The demand for washable face masks in Bataan has shown steady increase
over the last 5 years. Because of the current crisis, face masks are very in demand
for all ages. To increase market penetration, Via’s Fashionable Face Mask will offer
variety of colors and printed designs of face masks. At the same time, competition
and encouraging marketing campaign will be done to increase the visibility of Via’s
Fashionable Face Mask using different types of social media and scouting potential
online resellers to widen the market. The enterprise offers price differential based
on the size and designs with the price ranging from Php 31-40.

V. FINANCIAL PLAN

A. Start-up Summary
685pcs. - Total
Expenses Cost/pc. Year 1
Qty./Month
Neoprene Fabric 85 5,865 70,380
(10 masks per yard)
Equipment 7,500 7,500 7,500
(Sewing Machine)
Utilities 2,000 2,000 24,000
(water, electricity and
Internet)
Labor 7,350 7,350 88,200
Miscellaneous 1,285 1,285 15,420
Permit and License 3,000 3,000 3,000
Total 27,000 208,500
Table 3.1 (Start-up Summary)
Notes:
*Total quantity per month is based from the sales projection.
*Add all the salaries of the employees to get the Labor cost.
*Neoprene fabric, permit and license, utilities, and equipment costs are based on their actual
cost. Do the research.
Formula used:
*Cost/pc multiply to the total qty. per month
*Since every 1 yard of neoprene fabric can make 10 masks, total qty. per month divide 10
is equal to 69.
=85 x 69
=5,865
For year 1:
*Total qty. per month multiply by 12 (except for permits and license; and sewing
machine because they are not consumable)
=5,865 x 12
= 70,380
Do the same process to the succeeding data.

B. Financial Projections

Table 3.2 (Financial Projections – Income Statement)

Note:
*Income Statement – is a financial statement that shows you how profitable your
business will be within a given period.
*Revenues from total sales projection table-Year 1 Sales in Peso
*Cost of goods sold from start-up summary table, all the materials cost needed in production
of goods like fabric and labor
*Gross profit is equal to Revenues less Cost of Goods Sold.
*Expenses include all the expenses that are not included in cost of goods sold like
utilities, miscellaneous expense and permit and licenses.
*Income before Interest and Taxes = Gross profit - expenses.
*Tax = 32% (tax rate) of Income before Interest and Taxes
E.g. 89280 x .32 = 28,570
*Net Income = Income before Interest and Tax less
Tax To compute for years 2-5:
*Do the same procedure.
*Cost of goods sold and expenses multiply to the desired percentage you want. In that
projection, 10% increase per year is used to get the amount for years 2-5 (except for
permit and licenses).

Table 3.3 (Financial Projections – Cash Flow)

Note:
*Cash flow – this financial statement shows the flow of cash (inflow and outflow).
*Beginning balance for the year 1 is based on start-up summary total qty, per month. For the
years 2-5, the ending cash balance of the preceding year will be the beginning balance for the
current year.
*Cash sales are based on the sales projection table from the total sales in peso per year.
*Total cash inflows = Beginning year + cash sales plus + cash inflows
*Total Cash outflow = Expenses plus Payable and withdrawal. *In that projection, 10%
increase per year is used to get the amount for years 2-5 (except for permit and
licenses).
*Owner’s Withdrawal is projected amount only.
*Ending Cash Balance = Total Cash Inflows - Total Cash Outflows.
E.g. in Year 1
=317,280 – 237,070
=80,210
Table 3.4 (Sales Projections – Balanced Sheet)
Note:
*Balanced Sheet – the financial statement that reports a company’s assets, liabilities,
and owner’s equity within a given period.
*Always remember that in Balanced Sheet the Total Assets must be equal to Total
Liabilities and Equity.
*Assets and Liabilities consist of current and non-current.
*Current assets are cash and other assets converted to cash within a year while non-
current assets are cash and other assets that will not be realized or converted within a
year.
*Current liabilities are liabilities or short-term financial obligations that are due within a
year while non-current liabilities are long-term financial obligations that the due is more
than a year.
*Cash at hand is based on Net Income.
*Income tax payable= 32% (tax rate) of Income before interest and taxes.
*Capital is based on the cost per month in start-up summary table.
*Drawings – total drawings for the period.
*Net Capital = Capital Beginning + Net Profit – Drawings
*Total Liabilities and Equity = Total Liabilities + Net Capital
 What’s More

Identify the word or group of words that is being described in the following
sentences. Choose your answer from the box below. Write your answers in your
notebook.

1. It is the part of the business plan where you can find the process on how to
make a product.
2. It is the part of the business plan where you can find the permit and license to
be accomplished by the owner.
3. In this table, you can analyze that there is unmet demand and needs to be
sustained.
4. In this table, you will see the initial capital to start a business.
5. In this table, you will find the price of the products.

Pricing Scheme
Product Plan
Market Plan
Market analysis
Start-up
Summary
 What I Have Learned

Fill in each with the correct word/s that will complete each statement.
Answer this activity in your notebook.

1. Business plan has parts. (how many)

2. In management and organization, you can find the vision and of

the company.

3. In start-up summary, the total quality per month is based from the
.

4. is equal to revenues less cost of goods sold.

5. Capital is based on the table from the total sales per year.

6. Total liabilities and equity is equal to total liabilities plus .

7. = Beginning year + cash sales plus + cash inflows.

8. Tax rate is .

9. Income before Interest and Taxes = - expenses.

10. Net Income = Income before Interest and Tax less .

 What I Can Do

If you will be given a chance to start your own business, what would it be?
Why?

Make a simple business plan of your chosen business. Write your answer on
a clean sheet of yellow paper. The scoring rubric for this activity is given below.

Needs
Excellent: 5pts Average: 3pts. Improvement:
2pts.
Originality 100% original work 50% original work Not original work
The business plan The business plan The business plan
contains all the contains incomplete contains incomplete
information needed information needed information needed
Content
and has accurate and has accurate and has inaccurate
Knowledge
computation of computation of computation of
projected financial projected financial projected financial
statements. statements. statements.
Present in clean Present in unclean Present in unclean
Presentation sheets of paper and sheets of paper and sheets of paper and
readable. readable. unreadable.
 Assessment

A. True or False. Write TRUE if the statement is correct and FALSE if otherwise.
Write your answers in your notebook.

1. If you subtract gross profit from expenses, you can get the net income.
2. The executive summary is the last part to be accomplished.
3. In product plan, you can find the product features.
4. In management and organization, you can check the employees’ salaries.
5. The cash flow reports the company’s assets, liabilities, and owner’s equity.
6. In financial plan, you can check the projected income statement.
7. Cost of goods sold is the cost needed in production of goods like materials and
direct labor.
8. Income statement shows you how profitable your business will be within a
given period.
9. Balanced sheet shows the flow of cash (inflow and outflow).
10.In market plan, you can find the sales projection.

B. Arrange the following parts in chronological order. Number it from1-5.

11. Management and Organization

12. Product/ Service Plan

13. Financial Plan

14. Executive Summary

15. Market Plan

 Additional Activities

Some of you have a small business at home or maybe your family. Prepare
for the projected income statement for 5 years of your business. If none, use you
daily allowance and your personal expenses. Write your answers in your notebook.

Needs
Excellent: 5pts Average: 3pts. Improvement:
2pts.
Format must be Format is incorrect Format is incorrect
correct from the from the given from the given
Accuracy given format based format based on the format based on the
and Format on the discussion discussion and the discussion and the
and the computation computation is computation is
is accurate. accurate. inaccurate.
Overall aspects of the Overall aspects of The statement is
statement are clean the statement are unclean and not
Presentation
and readable. unclean and readable
readable.
Answer Key
References

De Guzman, Angeles A. Entrepreneurship (For Senior High School Applied Subject,

ABM Strand). Copyrighted, 776 Aurora Blvd., cor. Boston Street, Cubao,
Quezon City, Metro Manila.

Edralin, Divina M. Entrepreneurship. Copyrighted, 1253 G Araneta Avenue,

Quezon City: Vibal Group Inc., 2016.

Morató Jr., Eduardo A. Entrepreneurship. Copyrighted, 856 Nicanor Reyes Sr., St.,
Sampaloc Manila; Rex Book Store, Inc., 2016.
For inquiries or feedback, please write or call:

Department of Education – Region III,

Schools Division of Bataan - Curriculum Implementation Division Learning Resources Manageme
Provincial Capitol Compound, Balanga City, Bataan Telefax: (047) 237-2102
Email Address: bataan@deped.gov.ph