Republic of the Philippines

DEPARTMENT OF EDUCATION
Region I
SCHOOLS DIVISION OFFICE I PANGASINAN
BOLINAO SCHOOL OF FISHERIES
Arnedo, Bolinao, Pangasinan
Email: bolinaobsof@gmail.com/bolinaobsof@yahoo.com
www.bolinaosof.com

ENTREPRENEURSHIP 9

Quarter 3
Week 5-8

Module 6
Developing a Business Plan
ENTREPRENEURSHIP 9
HOW TO USE THIS MODULE

Welcome to the Module “Developing a Business Plan”. This module contains

instructional materials and activities for you to complete.
The unit of competency “Develop a Business Plan” contains the knowledge, skills
and attitudes required for the course Entrepreneurship.
You are required to go through a series of learning activities in order to
complete each of the learning outcomes of the module. Follow these activities on your
own and answer the Self-Check at the end of each learning activity.
If you have questions, don’t hesitate to ask your teacher for assistance. (Sonia
Agustin Cell No. 09569752324/09186220401)

Note: All content, activities, images and practice exercises in this module are
sourced from the CBLM Entrepreneurship 3.

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills and attitudes required in developing a
workable business plan.
WHAT WILL YOU LEARN?

At the end of this module, you should be able to:

a. organize the main parts of a business plan.

Good luck as you begin this module!

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LESSON 1 Week 3

ORGANIZE AND CONSTRUCT THE MAIN PARTS OF A BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson presents concepts on how to organize the main parts of a
business plan.
WHAT WILL YOU LEARN?
At the end of the lesson, you should be able to:
1. organize the main parts of a business plan;
2. use survey instruments to gather data;
3. analyze and interpret survey results; and
4. construct preliminary parts of a business plan based on the organized
main parts

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.

ACTIVITY IV
Fill in exercises A, B and C based on your product concept and
data gathered.

EXERCISE A
MARKET PLAN

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Instructions: In a group, write the market plan and be sure to include the
features of your product or service, the target audience and your
marketing strategies.
Product:________________________
Target Market: Who will buy your product/service? Why will they buy it?
OTHERS
PRODUCT
AGE JOB RESIDENCE (Please
INTEREST
Specify)
___________ ___________ ___________ ___________ ___________

Competitors: Who else sells a product or service similar to yours?

(List up to three)
a. Excellent Bakery
b. Heaven’s Touch Bakery
c. Pan de Manila

Do your competitors have a large clientele, or they seem to be busy?

a. ___________________ b. ___________________ c. __________________
When are your competitors most busy?
HOURS DAYS MONTHS
a.____________________ ______________________ _____________________
b.____________________ ______________________ _____________________
c.____________________ ______________________ _____________________

Where do your competitors’ customers live?

a. Within one kilometer: Two to five kilometer:
b. Within one kilometer: Two to five kilometer:
c. Within one kilometer: Two to five kilometer:

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EXERCISE B
MARKET PLAN
Pricing:
How much will you charge?______________________________________
Why will you charge this price? __________________________________
How much do your competitors charge?__________________________
Why do your competitors charge that price?______________________
Advertising

Indicate choice of sales tools: REASON FOR CHOOSING THIS METHOD

Telephone _________________________________________________________
Personal Contact _________________________________________________________
Paid Advertising _________________________________________________________
Newspaper Ads
Radio and TV
Posters, signs and billboards
Direct mail brochures, flyers, letters, samples (choose one)
EXERCISE
Free PublicityC _________________________________________________________
Using Contacts MARKET PLAN
_________________________________________________________
PublicRelations
Public Relations _________________________________________________________
Salescan
What Promotions _________________________________________________________
you do to get the attention of the potential customers:
Newspapers? ________________________________________________
Magazines? ________________________________________________
TV Stations? ________________________________________________
Radio Stations? ________________________________________________
Promotions ________________________________________________

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Which of the following will you use to get your product or service into the
hands of the customers? Why?
Games ________________________________________________
Coupons ________________________________________________
Special Prices ________________________________________________
Double Offers ________________________________________________
Other (pls. specify) ________________________________________________

PRODUCTION AND TECHNICAL PLAN Week 4

Production planning is the planning and allocation of raw materials,

workers, and workstations to fulfill manufacturing orders on time. In a make
to order environment, manufacturing orders or work orders themselves are
created after receiving customer orders. A company that follows make to
stock style of manufacturing will create work orders on a timely basis
depending on demands. Production plans are usually set by the production
managers who supervise the shop floor. A good production plan makes the
best use of available resources to deliver orders on time.
To maximize productivity, every company needs a sound production
plan. However, effective planning is a complex process that covers a wide
variety of activities to ensure that materials, equipment and human
resources are available when and where they are needed. Production
planning is like a roadmap: It helps you know where you are going and how
long it will take you to get there.
Here are some advantages of an effective production plan and
scheduling.
Reduced labour costs by eliminating wasted time and improving
process flow.
Reduced inventory costs by decreasing the need for safety stocks and
excessive work-in-process inventories.
Optimized equipment usage and increased capacity.
Improved on-time deliveries of products and services.

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 The Production Paradigm

Transformation
Process
ASSEMBLING
CANNING
Inputs Outputs
CONSTRUCTING
LABOR
FINISHED PRODUCTS:
LAND CULTURING
BAGS
MACHINE
DRAWING T-SHIRTS
RAW MATERIALS FURNITURE
SEWING CANNED GOODS
PASTRY

ACTIVITY V

Illustrate your own production paradigm based on your product

concept using the box below.

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ORGANIZATIONAL/MANAGEMENT PLAN Week 5

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:

ACTIVITY VI
Design your own organizational/management chart based on your chosen business.

SECTION V
Week 6
I. SUSTAINABILITY
I. Financial Plan
“Where the money comes from and where it goes.”

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 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.
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

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 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.

FIXED COST
Rental
Salaries:

(A)TOTAL FIXED COST

VARIABLE COST (Month)

Raw Materials

Telephone Bill
Electricity

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 Water
Transportation
Miscellaneous
(B)TOTAL VARIABLE
COST
(A+B) TOTAL MONTHLY
COST

ACTIVITY VII
Show your projected expenses per month during the initial year of your operation based on
your product concept. Use table 1 as your example.
Table 2
PROJECTED REVENUE
Project Project
ed ed
Volum Daily Volum Yearly
Types Monthly
Costing e e Projected
of Bread Revenue Revenue
Revenue
Monthl
Daily
y
C – P 1.50
Peter
M - 50¢ P P144,000.0
Pandesa 200 P 400.00 6000
12,000.00 0
l SP – P
2.00
C – P 4.00
M–P
Monay P P180,000.0
1.00 100 P 500.00 3000
Lisa 15,000.00 0
SP – P
5.00
C – P 4.50 50 P 300.00 1500 P 9,000.00

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 M–P
Mama 1.50 P108,000.0
Empana
SP – P 0
da
6.00
C – P 1.75
Hopia M - .75¢ P P135,000.0
150 P 375.00 4500
Like Ko 11,250.00 0
SP – P
2.50
C- P
22.00
Tasty
ang M–P P P243,000.0
25 P 675.00 750
Bread 5.00 20,250.00 0
ko!
SP – P
27.00
P P P810,000.0
Total 525 15750
2,250.00 67,500.00 0

Cost – C Mark-up - M Selling price - SP

Table 3
MONTHLY PROJECTED COST REVENUE
Jan Feb Mar Apr May Jun
Revenue P67,500.0 P69,187.5 P72,646. P79,911.5 P87,902.7 P96,692.99
0 0 88 6 2
Cost P23,595.0 P24,184.8 P25,394. P27,933.5 P30,726.8 P33,799.57
0 8 12 3 8
Projected P43,905.0 P45,002.6 P47,252. P51,978.0 P57,175.8 P62,893.42
0 3 76 3 4
Net Profit

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 Table 4

Jul Aug Sep Oct Nov Dec Total

P99,110.3 P94,154.8 P91,800.9 P87,210. P104,653. P125,583. P1,076,355
2 0 3 88 06 67 .31
P34,644.5 P32,912.3 P32,089.5 P30,485. P36,582.0 P43,898.4 P376,245.9
6 3 2 05 6 7 8
P64,465.7 P61,242.4 P59,711.4 P56,725. P68,071.0 P74,878.1 P700,109.3
5 7 0 83 0 0 3

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.

ACTIVITY VIII Week 7

Compute your projected cost and revenue by month based on you product concepts. Use
tables 2 and 3 as your examples.

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Projected Revenue
Project Project
ed ed
Volum Daily Volum Yearly
Monthly
Types Costing e e Projected
Revenue Revenue
Revenue
Monthl
Daily
y

Total

Projected Monthly Revenue

Jan Feb Mar Apr May Jun
Revenue
Cost
Projecte
d
Net
Profit
July Aug Sep Oct Nov Dec Total

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Examples of Projected Income Statement and Cashflow
Table 4
ANONG SARAP BAKERY
PROJECTED INCOME STATEMENT
FOR THE YEARS ENDED 2008 AND 2009

2008 2009
REVENUE PhP 1,076,355.31 PhP 1,237,808.60
Cost /Expenses PhP376,245.98 Php432,682.87
Projected Net Income PhP700,109.33 PhP805,125.73
Projected Income for the year is expected to by at least rise by 15%
Table 5
CASH FLOW 1ST QUARTER OF 2008
January February March
Beginning Cash P 40,000.00 P 60,310.00 P 81,127.75
Balance
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.

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 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.

ACTIVITY IX

Compute your projected income statement for the year ended and cash flow for the first
quarter of the year based on you product concept. Use Table 4 and 5 above as you guides.

PROJECTED INCOME STATEMENT

FOR THE YEARS ENDED

REVENUE
Cost /Expenses
Projected Net Income

CASH FLOW 1ST QUARTER OF

January February March
Cash Balance-
Beginning
Cash Inflows
Net Income
Cash Outflow
Fixed Cost
Variable Cost
Cash Balance
Ending

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SOCIAL IMPACT Week 8

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.

ACTIVITY X
Write the social impact of your chosen business by answering the following.

1. What is the desired outcome of your business as stated in your vision statement?
___________________________________________________________.
2. What are the business activities and its corresponding social impact? Write it in
the appropriate column.

Business Activity Social Impact

1.

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 2.
3.
4.

3. What are your business programs directly benefiting the following stakeholders?
a. employees
b. school
c. community
LET US REMEMBER

A workable business plan maximizes the chances of

starting a viable and sustainable business.

Post-test

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.
Addendum d. Target Market
Market Trends e. Sustainability
Mission 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.

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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.

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

a. evaluation plan
b. management plan
c. operational plan
d. organizational plan
2. 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
1. It gives the information on financial concerns and stability of the plan.
a. Financial Plan
b. Marketing Plan
c. Organizational Plan
d. Production Plan
2. Business production and services are varied based on____________.
a. innovation
b. lifestyle of the people
c. needs and wants
d. science and technology
3. This is the center of interest in a given garment.
a. balance
b. emphasis
c. harmony
d. proportion
4. 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

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 5. 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
6. 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
7. 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
8. It is an outline of your business.
a. Business Plan Proper
b. Executive Summary
c. Overview of the Business
d. Personal Details

REFERENCES:
Villanueva, et. al., Business Management III,
Adriana Publishing Co. Inc., pp. 74-76, Cubao, Quezon City
http//articles.bplans.com/
http//retail.about.com
Teneza et.al, Business Management IV,
Shekinah Publishing and Printing Press, pp. 116,
171-172; Las Pinas, City
"How To Write Mission, Vision, And Values Statements - 100 Examples To Help
Guide You Through The Process — Bâton Global". Batonglobal.Com, 2021,
https://www.batonglobal.com/post/how-to-write-mission-vision-and-values-
statements-with-examples.

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