ENTREPRENEURSHIP REVIEWER FOR 2ND UNIT TEST
CHAPTER 1 AND CHAPTER 2
Business plan
 is prepared using a scientific approach in determining
possible business situations considering the different
perspectives of people who are interested in the business.
 the roadmap of the new business.
 provides a clear direction to any uncertain business
endeavor.
 detailed and integrated written document that describes the
various activities involved in opening and operating a new
entrepreneurial venture.
Feasibility study
 which serves as the forerunner of the business plans
two major tests are conducted every time a new business idea is
created,
Test of possibility
 on the new business idea should have positive results
Test of feasibility
 is to determine whether the proposed business is feasible or
not in all areas.
MAJOR PARTS OF THE BUSINESS PLAN
Introduction
 presents the general perspective of the business. It may
consist of one to two pages.
1. Proposed name of the business
2. Description of the business
3. Potential worth to the people and the community
4. Address of the business
5. Name of the owner or owners
6. Location of the business
7. Funding requirement and source
Proposed Name of the Business
 formulation and drafting of the proposed business name are
not as simple as it sounds.
 It is a delicate and important entrepreneurial task.
 name of the business may exist in the market for many
years. Careful and in-depth planning is of prime
importance.
1. reflect the business identify and image
2. promote the philosophical values and culture that the
business values the most,
3. profess the brand identity of the product, and
4. attract or influence the target consumers.
Description of the Business
 A brief description of the business must include
information about the type of product or service that the
business intends to produce or provide.
 include a brief information about the ultimate mission,
vision, and objectives of the business.
 other products or services that the business plans to
produce or provide must also be mentioned in the
description of the business
.
Potential Worth to the People and the Community
 part includes the compounded benefits that you can derive
from the product and the business.
 importance should be presented in an orderly manner from
the people to the community.
 Will help the business to persuade more investors to engage
into their business.
Address of the Business
 It is important that the address of the business is correctly
written because all business correspondence is mailed to
the business address.
 Raw materials and other manufacturing supplies are also
shipped by the seller to the designated business address.
 also necessary for the business to have an e-mail address to
facilitate electronic communication between the business
and the customers, suppliers, creditors, and other
significant parties.
Name of the owner
 The name of the owner must be properly stated.
 In case the venture is a partnership, the names of the
partners, including the extent of their liabilities, must be
indicated.
 For business venture that will operate as a corporate entity,
the names, nationalities, and addresses of the incorporators
must be given. Incorporators are persons who originally
formed the corporation.
Location of the Business
 There are no rigid rules in the selection of the business
location since several variables affect the selection of the
business location.
 basic entrepreneurial consideration is to place the proposed
business in a strategic location that will assure competitive
advantage.
What is the difference between the sections Address of the business
and Location of the business?
 former simply states the exact business address.
 latter indicates the reason/s for the selection of the location.
Funding Requirement and Source
 Funding Requirement and Source indicated.
 It should include the projected breakdown or allocation of
total cost, e.g., how much will be for building, fixture,
equipment, supplies, and working capital.
 This section also presents the source or sources of funds.
 The initial cost of investment may be provided solely by
the owner or owners or partly by the owner and creditors.
 The estimated period to settle the funding source provided
by creditors must also be mentioned.
 ENTREPRENEURSHIP REVIEWER FOR 2ND UNIT TEST
CHAPTER 1 AND CHAPTER 2
ORGANIZATIONAL STRUCTURE
 usually shown or reflected in the organizational
chart.
 shows and defines the hierarchy of the different
positions in the organization and the interrelationships
of the different offices or departments.
 refers to the way you organize the management and
decision-making process of your business to
maximize efficiency and productivity.
Organizational chart
 depicts the flow of communication within the
organization and the line and staff authority that must
be observed and executed.
Vertical Organization Elements
 your business has a pyramidal top-down structure,
 “vertical” refers to the fact that the organization works
from the top to the bottom, and that employees are
not required or expected to contribute to the choices
that you make regarding how the company operates.
 collaboration only occurs when managers schedule
meetings with employees
Horizontal Organization Elements
 Business has a flat structure, which means there are
very few managers and more authority is granted to
rank-and-file employees.
 Are motivated and driven by company goals, which
can improve efficiency and morale.
 also, more collaborative because they can
communicate freely with each other
vertical system, upper-level management issues orders and
employees follow those orders without input or objection in
contrast, employees in a horizontal organization are
encouraged to make suggestions and offer ideas that can
improve workplace processes, and are given the authority to
implement changes without having to obtain authorization.
ROLES AND RESPONSIBILITIES
 must be clearly defined in order to minimize and avoid
misunderstanding and overlapping of functions.
 The educational requirements and experiences
required to the workers must also be specified.
 Complete information about the expectations of a
particular job or position facilitates evaluation and
hiring qualified personnel and the assessment of the
performance of existing workforce.
 , a clear set of selection criteria for every position in
the organization that only qualified personnel are
hired.
JOB DESCRIPTION
 is an organized factual statement of job contents in
the form of duties and responsibilities of a specific job
 preparation of job description is very important before
a vacancy is advertised
 . It tells in brief the nature and type of job
 s type of document is descriptive in nature and it
constitutes all those facts which are related to a job
such as
1. Title/ Designation of job and location in
the concern.
2. The nature of duties and operations to be
performed in that job.
3. The nature of authority- responsibility
relationships.
4. Necessary qualifications that are required
for job.
5. Relationship of that job with other jobs in
a concern. 6. The provision of physical and
working condition or the work environment
required in performance of that job
JOB SPECIFICATION
 is a statement which tells us minimum acceptable
human qualities which helps to perform a job
 Job specification translates the job description into
human qualifications so that a job can be performed
in a better manner.
 Job specification helps in hiring an appropriate person
for an appropriate position. The contents are
1. Job title and designation
2. Educational qualifications for that title
3. Physical and other related attributes 4.
Physique and mental health
5. Special attributes and abilities
6. Maturity and dependability
7. Relationship of that job with other jobs in a
concern.
SALARY REQUIREMENT
 organizational plan must show the total estimated
monthly and annual salary requirements of the
business.
 All other mandatory benefit like the employer’s
contributions to the Social Security System (SSS),
Pag-Ibig, and Philhealth must likewise be specified
 If some legal plans and moves of the Congress of the
Philippines will bring about increases in the salaries of
 ENTREPRENEURSHIP REVIEWER FOR 2ND UNIT TEST
CHAPTER 1 AND CHAPTER 2

personnel, the projected amount must be included in

the disclosure as well