Entrepreneurship

Quarter 3
 Entrepreneurship
Grade 11
Quarter 3

Schools Division Office Management Team: Rosemarie C. Blando, August Jamora,

Merle D. Lopez, Florendo S. Galang
Writer/s: Mark Anthony Z. Umali, Rochelle G. Bermejo, Judith P. Zapanta
Illustrator: Julius Burdeos

- Proverbs 10:4, ESV

Entrepreneurship
Quarter 3
First Edition, 2020

Published by: Department of Education SDO Rizal

Schools Division Superintendent: Cherrylou D. Repia
Assistant Schools Division Superintendents:
Gloria C. Roque and Babylyn M. Pambid
 Recruitment WEEK

13
I Lesson

This lesson introduces you to independently creates a business vicinity map reflective

business enterprise.

D
Recruitment is a process of convincing or encouraging a prospective applicant to
fill in a vacant position.
Steps in Recruitment
1. Study the different company jobs and write its descriptions and specifications.

Job Description - It defines the duties and responsibilities of a particular po-

sition. It is an essential part of hiring and managing your employees. These written
summaries ensure your applicants and employees understand their roles and what
they need to do to be held accountable. Job description also:
Help attract the right job candidates;

Serve as a major basis for outlining performance expectations, job training, job evalua-
tion and career advancement; and
Provide a reference point for compensation decisions and unfair hiring practices.

A job description should be practical, clear and accurate to effectively define your
needs. Good job descriptions typically begin with a careful analysis of the important
facts about a job such as:
Individual task involved;
The methods used to complete the tasks;
The purpose and responsibilities of the job;
The relationship of the job to other jobs; and
Qualifications needed for the job.
 Job description include:
Job title;
Job objective or overall purpose statement;
Summary of the general nature and level of the job;
Description of the broad function and scope of the position;
List of duties or tasks performed critical to success;
Key functional and relational responsibilities in order of significance; and
Description of the relationships and roles within the company, including supervisory
positions subordinating roles and other working relationships.
Additional Items for Job Descriptions for Recruiting Situations:
Job specifications, standards, and requirements;
Job location where the work will be performed;
Equipment to be used in the performance of the job; and
Salary range.
Job Specification - It gives the specific qualifications required for the position such
as type of experience needed for the job, special training, skills and physical de-
mands, special abilities, aptitude, age, physical qualifications and other requirement.
Jobs are subject to change for personal growth, organizational development, and/or
evolution of new technologies. A flexible job description encourages employees to grow
within their position and contribute over time to the overall business.
2. Requisition of New Employee - A formal requisition form is required indicating the po-
sition to be filled, date needed, qualifications and other requirements needed for an
applicant.
Actual recruitment of applicant/s.
Sources of applicants:
a. Internal - employees recruited within the company.
b. External - applicants recruited through advertisement, referrals, placement
agencies, etc.
Selection
It is the process through which organizations identify and make decisions
about the applicants/s who will be allowed to join the company. Organizations should
create a selection process in support of its job descriptions and should be able to identify
applicant/s that have the necessary knowledge, abilities, skills, and other characteristics
required in the job.
Steps in Selection
1. Reception of Applicants - It involves screening of applicants by which applicants are
interviewed.
2. Preliminary Interview - The purpose of preliminary interview is to check if the appli-
cant is qualified for the position and eliminate those applicants who are disqualified.
3. Filling out of Application Form - This serves as a guide in interviewing the applicant
to determine if the applicant matches the job requirements as indicated in the job de-

school records, former employers and references.

4. Employment Test -
for the job.
5. Final Interview by Immediate Supervisor or Department Head - To determine who
among the applicants should be hired and fitted for the job.
6. Physical and Medical Examination
Medical Examination - A medical examination helps to determine if t he applicant is
fit to work or to find out health concerns that might hinder his ability to perform the
required job. Pre-Employment Test -
A pre-employment background check is essential in hiring an employee to obtain im-
portant information of the applicant in terms of work performance and his ability to do
a specific job and other essential information required for the job before deciding to hire
an applicant.
7. Hiring - The applicant who passed the selection requirements is sent to the Human Re-
source Department for final completion of the hiring process.
8. Orientation - The new employee/s are oriented on company policies, rules and regula-
tions and informed or directed about his job by the immediate supervisor or training
officer.
Training/Retraining
New employees are required to undergo training to help him perform his job effi-
ciently. For the growth of employees and the company, training is carried out continuously
in many organizations according to the needs of the employees and/or company. Retrain-
ing is required to those who need enhancement, new knowledge on the present job, need
promotion and transfer to other department.
Compensation
This part contains the compensation of the personnel based on their qualifications.
After determining the needed number of manpower and their qualifications, the next step
is to express it in monetary form. The usual standard in determining wage rates is match-
ing them with the industry standards. The pay scale shall be set based on the minimum
wage in the region or place of the business and the result of the salary survey that match
the industry standards.
Since the law mandates the provision of benefits to workers, such as allowances,
bonuses, Social Security System (SSS), Pag-ibig, Philhealth contributions and the like;
these should be included in the study. Also companies provide benefits such as leave ben-
efits, allowances, bonuses, insurance and retirement benefits. The summary of the com-
pensation package should be shown in the exhibit.
Establishing the Pay Structure
This means establishing pay rates or ranges compatible with ranks, classifications,
or points arrived at through job evaluation. Another way to establish the pay structure is
to conduct compensation surveys to gather factual information on pay practices within
industry or particular place.
Organizational Policies
This section explains the personnel policies that should be implemented in the
workplace. There should be underlying policy in the recruitment, selection, hiring, train-
ing and development of personnel, including the compensation and benefits.
As part of organizing the business, a company manual and code of discipline that

should be prepared.
Company Manual
An employee manual is an important communication tool between an employee
and employer. It serves as a guide for employees in the performance of his job and what is
being expected of him as an employee. It includes company policies and procedures and
labor laws that the employee is expected to comply and such other benefits and rights of
an employee.
Company Code of Discipline
The rules and regulations stated are important to achieve total efficiency and har-
monious relationship. Discipline is a key factor in any business undertaking. It promotes
greater efficiency in business operations, creates a general condition of orderliness condu-
cive to greater manpower productivity, reinforces the moral dignity of all employees, and
most of all enhances company prestige.
E
Learning Task 1: Observe and discuss the recruitment process of the following:

1. SM Taytay
________________________________________________________________________
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2. Jollibee Foods Corporation
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
3.
_________________________________________________________________________
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_________________________________________________________________________
_________________________________________________________________________
4. Motortrade
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
5. Mercury Drug
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
 A
Learning Task 2:
A. Identification
____________1. It defines the duties and responsibilities of a particular position.
____________2. It is a process of convincing or encouraging a prospective applicant to fill
in a vacant position.
____________3. It is the process through which organizations identify and make deci-
sions about the applicants/s who will be allowed to join the company.
____________4. It gives the specific qualifications required for the position such as type
of experience needed for the job, special training, skills and physical de-
mands, special abilities, aptitude, age, physical qualifications and other
requirement.

B. Enumeration:
Steps in Recruitment
5.
6.
7.
Steps in Selection
8. 12.
9. 13.
10. 14.
11. 15.

Learning Task 3: Ask a family member or relative who is employed in a company and
ask about the following information:
Name of the Company: _____________________
1. Compensation
2. Pay structure
3. Organizational Policies
4. Company Manual
5. Company Code of Ethics
 Business Model
Lesson
I

This lesson introduces you to independently creates a business vicinity map reflective of

At the end of the lesson, you are expected to develop the business model

D
Business Model
It describes how the business will generate revenue and support financial projec-
tion/s. It will greatly help in describing the importance of the business in gaining profit
and sales. It is a description of means and methods a firm employs to earn the revenue

company can raise prices and it can find inventory and reduced costs. Both actions in-
crease gross profit. Gross profit is often considered the first line of profitability because it
only considers costs, not expenses. It focuses strictly on the way in which a company does
business, not the efficiency of management. Investors that focus on business models are
leaving room for an ineffective management team. (Investopedia)
A business model
tual, textual, and/or graphical, of all core interrelated architectural, co-operational, and
financial arrangements designed and develop by an organization presently and in the fu-
ture, as well as all core products and/or services the organization offers, or will offer,
based on these arrangements that are needed to achieve its strategic goals and objectives.
This definition by Al-Debei, El-Haddadeh and Avison (2008) indicates that value proposi-
tion, value architecture (the organizational infrastructure ad technological architecture
that allows the movement of products, services and information), value finance (modeling
information related to total cost of ownership, pricing methods, and revenue structure),
and value network articulate the primary constructs or dimensions of business models.
Business models are used to describe and classify businesses, especially in an entrepre-
neurial setting, but they are also used by managers inside companies to explore possibili-
ties for future development. Well-
tive managers. Business models are also referred to in some instances within the context
of accounting for purposes of public reporting. This is the conceptual structure support-
ing the viability of a business, including its purpose, its goals and its ongoing plans for
achieving them. It describes the rationale of how an organization creates, delivers, and cap-
tures value, in economic, social, cultural or other contexts. The process of business model
construction is part of business strategy.
In theory and practice, the term business model is used for a broad range of infor-
mal and formal descriptions to represent core aspects of a business, including purpose,
business process, target customers, offerings, strategies, infrastructure, organizational
structures, sourcing, trading practices, and operational processes and policies including
culture. The literature has provided very diverse interpretations and definitions of a busi-
ness model. A systematic review and analysis of manager responses to survey defines
business models as the design of organizational structures to enact a commercial oppor-
tunity. Further extensions to this design logic emphasize the use of narrative or coherence
in business model descriptions as mechanisms by which entrepreneurs create extraordi-
nary successful growth firms.

Characteristics of a Strong Business Model

Adapted from http:www.businessdictionary.com/definition-model.html
1. Identify the specific audience.

truly need and want your product or service. Instead, when creating your business
model, narrow your audience down to two or three detailed buyer personas. Outline

offer. As an example, Home Depot might appeal to everyone or carry a product the aver-

ers.
2. Establish business processes. Be-
fore the business can go live, one should have an understanding of the activities re-
quired to make the business model work. Determine key business activities by first

service, shipping a product or offering consulting? In the case of Ticketbis, an online

ticket exchange marketplace, key business processes include marketing and product
delivery management.
3. Record key business resources.
What does the company need to carry out daily processes, find new customers and
reach business goals? Document essential business resources to ensure the business
goals? Document essential business resources to ensure the business model is ade-
quately prepared to sustain the needs of the business. Common resource examples may
include a website, capital, warehouses, intellectual property and customer lists.
4. Develop a strong value proposition. How
will the company stand out among the competition? Do you provide an innovative ser-
vice, revolutionary product or a new twisty on an old favorite? Establishing exactly what

service or product delivery system to determine how you will remain valuable to cus-
tomers over time.
5. Determine key business partners.
No business can function properly (let alone reach established goals} without key

a business model, select key partners, like suppliers, strategic alliances or advertis-
ing partners. Using the previous example of Home Depot, key business partners
may lumber suppliers, parts wholesalers and logistics companies.
6. Create a demand generation strategy.

strategy that builds interest in your business generates leads and is designed to
close sales. How will customers find you? More importantly, what should they do
once they become aware of your brand? Developing a demand generation strategy

for taking action.

7. Leave room for innovation.
When launching a company and developing a business model, your business
plan is based on many assumptions. After all, after you begin to welcome paying

make a critical mistake by thinking your initial plan is a static document. Instead,
review it often and implement changes as needed.
Benefits of Business Model Documentation
1. It describes how an organization fulfils its purpose.
2. It answers the following questions: Who is your customer, what does the customer
value, and how do you deliver value at an appropriate cost?
3. Maintaining a focus on corporate goals, reviewing operational practices and ensuring
that the two are congruent.
4. It can be incorporated into public relations material and its useful to share with cus-
tomers and partners.
5. The mission statement or vision statement may be included in a business model.
6. Financial goals have been the main focus of such models but business sustainability
and corporate culture have become increasingly integral to business plans in recent
years.
Sample of a Business Model

Offline Offline
Target Market: Target Market:
Employees within area Employees within area
of Santa Rosa, Laguna of Santa Rosa, Laguna
Location: Location:
Target Mall, Balibago Transaction:
Complex
Online selling
Transaction:
Personal

Market Selling Strategies

Product
Grilled sea foods
Price
Cost Plus Pricing
Place
Store Location, Website

Explain how business model will the company to accomplish their objectives. Each
frame must be inter-related from the other to connect its relevance. Give the usefulness
of the frame used in the model. It must be related to the vision and mission of the pro-
posed business. Entrepreneur can use this as a direction terms of decision making, stra-
tegic planning and long terms projections.
E
Learning Task 1: Explain the meaning of the following concepts.
1. Business Model
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_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
2. Business Resources
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
3. Specific Audience
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
4. Demand Generation Strategy
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
5. Key Business Partners
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
 A
Learning Task 2: Prepare a business model for the following:
1. Motortrade
2. SM City
3. Chowking
4. San Miguel Corporation
5. Goldilocks
 WEEK

Revenues 14
Lesson
I

This lesson introduces you to independently creates a business vicinity map reflective of

At the end of the lesson, you are expected to forecast the revenues of the business.

D
How to Forecast Revenue and Growth
Forecasting is calculating and predicting (Some future event or condition) usually) as
a result of study and analysis of available pertinent data. It is a foresight of consequences
and provision against them; prediction or estimate of a future happening or condition.
Many entrepreneurs complain that building forecasts with any degree of accuracy takes a
lot of time - time that could be spent selling rather than planning. But few investors will
put money in the business if unable to provide a set of thoughtful forecasts. More im-
portant, proper financial forecasts will help to develop operational and staffing plans that
will help make the business a success.
Revenue is the total income produced by a given source, a property expected to yield
large annual revenue, the gross income produced by a given source, a property expected
to yield large annual revenue, the gross income returned by an investment. It is the yield
of source income (taxes) that a political unit (as a nation or state) collects and receives into
the treasury for public use.
Growth is a stage in the process of growing; it is a result of growth, a producing es-
pecially by growing. It is anticipated progressive growth especially in capital value and in-
come. Some investors prefer growth to immediate income.

Building Financial Forecasts

Start with expenses, not revenues. It is much easier to forecast expenses than reve-
nues. The most common categories of expenses are as follows:
1. Fixed Costs/Overhead
a. Rent
b. Utility bills
c. Phone bills/communication costs
d. Accounting/bookkeeping
e. Legal/insurance/licensing fees
f. Postage
g. Technology
h. Advertising & Marketing
i. Salaries
2. Variable Costs
a. Cost of Goods Sold
b. Materials and supplies
c. Packaging
3. Direct Labor Costs
a. Customer service
b. Direct sales
c. Direct marketing
Rules in Forecasting Expenses
1. Double the estimates for adverting and marketing costs since they always escalate beyond
expectations.
2. Triple the estimates for legal, insurance and licensing fees since they are very hard to pre
dict without experience and almost always exceed expectations.
3. Keep track of direct sales and customer service time as a direct labor expense even when
doing these activities during the start up stage to forecast this expense with more clients.
Forecast Revenues

Conservative revenue might have the following assumptions:

1. Low price point.
2. Two marketing channels.
3. No sales staff.
4. One new product or service introduced each year for the first three years.
Aggressive case might have the following assumptions:
1. Low price point for base product, higher price for premium product.
2. Three to four marketing channels managed by a marketing manager.
3. Two salespeople paid on commission.
4. One new product or service introduced for each segment on the market in years two and
three.
Key Ratios in Forecasting
After making aggressive revenue forecasts, it is easy to forget about expenses. Many entre-
preneurs will optimistically focus on reaching revenue goals and assume that the expenses can
be adjusted to accommodate reality if revenue does not materialize. The best way to reconcile
revenue and expense projections is by a series of reality checks for key ratios.
Revenue forecasts are useful both for start-ups and existing businesses. Here is how to pre-
pare:
1. Decide on a Timelime
Decide on how far you want to look into the future. This will be determined by creating
the report.
2. Forecast Your Expenses
Predicting expenses is perhaps the easiest part of reveue forecast with past expense
records of an existing business and researched forecast.

Two Types of Expenses

1. Fixed Costs - These are the expenses that remain the same every month. They in-
clude things such a rent, fixed salaries, utilities, insurance, phone, internet and tech-
nology costs, postage, advertising and marketing expenses, legal, accounting, and
bookkeeping fees.
2. Variable Costs - Those are the expenses that change every month, depending on your sales
volume. They include the cost of the goods sold (including materials and supplies), packag-
ing costs, sales, cost of labor, marketing, and customer service costs as they relates to the
sale of product.

E
Learning Task 1: Choose a leading restaurant or any business establishment in your
town, forecast the following: (As of December 2020)
1. Revenue
2. Growth
3. Expenses
4. Sales Volume
5. Projected Sales

A
Learning Task 2: Based on your answer in Learning Task 1, Answer the following
questions:

1. What is the effect of the Covid-19 Pandemic on the forecasted revenue?

2. What precautionary measures the company do as response to the situation?
3. What kind of products or service are not affected by the pandemic instead their revenue
increased?

RUBRIC:
Organization of ideas - 5 pts.
Grammar - 5 pts.
Total 10 pts. each
 Lesson

This lesson introduces you to independently creates a business vicinity map reflective of

At the end of the lesson, you are expected to forecast the costs to be incurred.

D
Project Cost Forecast
Cost forecasts are normally performed as part of periodic processing. If the company
wanted to run the cost the forecast at a particular time and/or in background processing,
one can plan it as a job in the Schedule Manager. Use the Schedule Manager monitor to
check the scheduled job both during and after processing.

Process Flow
Before accessing the cost forecast, the following are needed:
1. Reschedule
2. No activity scheduling takes place in the cost forecast. It must be rescheduled first,
so that the calculation of the cost to complete takes account of the changed dates.
3. Calculate overhead on actual and commitment values.

The Cost Simulation Versions

Based on planned, actual and commitment costs, the system determines what is still
to be done in network activities and costs this again. The system records the value so deter-
mined as cost to complete, by period, in a period, in a forecast version for:
Internally processed activities
Externally processed activities
General costs activities
Material component not managed as part of project stock (whether valued or not)

Result
The following forecast version values are available for evaluation in the Project Infor-
mation System:
1. Cost to complete.
2. Actual values at the time of the cost forecast.
3. Commitment values at the time of the cost forecast.

Cost Control Strategies

asks suppliers to provide them manpower like merchandisers and promo girls. Suppliers
also pay for displays and replace bad orders (B.O.)
 Red Ribbon changed its distribution strategy and instead of expanding solely by opening
more full branches, it expanded by putting out more kiosks catering to the take - out market,
which allows them to operate at much lower operating cost.

Product Improvement

1. Product Migration Strategy

Also known as Moving Up the Ladder strategy, Migration strategy has many names. It i s
called Planned Obsolescence in the consumer durable market or Cannibalization strat-
egy in the non-durable goods like soaps and detergents.
An assessment of margin contribution by product must be made before adding or de-
letting products to improve margins. For instance, many appliance stores like Abenson
and Automatic Center have allocated space for furniture lines because they are more pro-
fitable to carry than appliances.

2. Vertical Integration Strategy

Vertical Integration Strategy can be either be forward or backward. The objective is to
gain economies of scale and to increase control margins. For instance Jollibee has their
own bakery (backward integration) providing breads and other products.

Corporate Retrenchment

tion.

1. Overhead Reduction Strategy

A key is to cut overhead that has no strategic implications. These things usually do
-to-
Enchanted Kingdom makes use of their 300 employees to do performances besides
their usual tasks. This not only reduces overhead, but this multi-tasking actually helps
boost the confidence of the employees and allows them the chance to showcase their per
forming skills. Even some of the owners join cast in some performances.

2. Reorganization Strategy
With fixed costs escalating and the number of qualified outlets with category authority
decreasing. Waters Philippines decided to get out of the distribution of their high-tech wa-
ter purification products via retail stores. At much higher price versus competition, Wa-
ters needed a proper demonstration and explanations of their higher quality, 3-in-1 alka-
line, mineral and purified water benefit with their home water system, a goal achieved only
after they shifted into a direct selling organization via an independent sales force. Its sales
and profitability reached an all-time high after the reorganization from distribution selling to
retail selling, from selling cash at the retail stores to selling via installment to the end users,
and from salaried manpower like salesmen and promo girls to independent network market-
ers and leaders.
 E
Learning Task 1:
Differentiate Product Migration Strategy from Vertical Integration Strategy.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
2. Compare Overhead Reduction Strategy and Reorganization Strategy.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________

A
Learning Task 2:
A. Aside from the mentioned company in the discussion search for other companies that
apply the following Cost Control Strategies.

1. Product Migration Strategy

2. Vertical Integration Strategy
3. Overhead Reduction Strategy
4. Reorganization

B. Ask for a business owner near you about his cost control strategies.
 WEEK

15
Lesson

I
tion for understanding of concepts, underlying principles, and processes of starting and op-
erating a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to implement the business plan.

D
A business plan is a written description of your business's future, a document that tells
what you plan to do and how you plan to do it. If you jot down a paragraph on the back of an
envelope describing your business strategy, you've written a plan, or at least the germ of one.

Business plans are inherently strategic. You start here, today, with certain resources and
abilities. And you want to get to there, a point in the future (usually three to five years out), at
which time your business will have a different set of resources and abilities as well as greater
profitability and increased assets. Your plan shows how you will get from here to there.
( https://www.entrepreneur.com/article/247574)

Business Implementation
It is a vital stage in business planning. This is the process of executing a plan into prac-
tice. Business Implementation involves establishing structures and activities needed to intro-
duce a business into the marketplace.

Importance of Business Implementation

(Based from the insight of Gustafson)

1. Change - The implementation of a plan brings about change meant to help improve the
company or solve a problem. The changes can occur to policies, management structures,
organizational development, budgets, processes, products or services.
2. Organizational Development - Part of good organizational development involves all em-
ployees in implemented changes. When a company shares its ideas and goals with workers,
the workers will feel a sense of ownership and loyalty to the company, as well as feel includ-
ed in something important that is larger than their respective job descriptions. Making
workers feel valued also helps maintain or improve employee retention. Communicating
goals to employees helps encourage participation and can give a plan a strong start.
3. Increased Cooperation - When executed properly, business implementation can increase in-
terdepartmental cooperation. It can be easy for a department within a business to work inde-
pendently and only rely on another department within a business to work independently and
rely on another department when a need arises, particularly in a large company. It helps unite
departments, open the lines of communication, creates a diverse culture within the organiza-
tion and increases efficiency and productivity.
4. Clear Priorities - As well as communicating goals, business implementation sets clear priori-
ties. Priorities are generally based on due dates, client needs, financial concerns, worker needs
or logistics. Failure to communicate priorities can cause inefficiencies, miscommunications,
worker frustration and low morale. When priorities or deadlines are realistic, employees feel as
if a company is setting them up for success.
5. Moving Forward - Business implementation is important for moving a company forward.
When a business fails to implement and execute its strategies properly, it fails to move forward
and grow. According to website Business Balls, to implement and execute a plan successfully ,

FORMAT OF A BUSINESS PLAN

I. Executive Summary
II. Background and Business Concept
III. Description of the Business
IV. Vision and Mission for the Business
V. Marketing Plan
a. Product
b. Price
c. Place
d. Promotion
VI. Sales and Production Plan
VII. Business Requirements
a. Staffing and Cost
b. Business Organization
c. Equipment Requirement
d. Space Requirement
e. Manufacturing Processes
f. Plant Location
g. Material Cost
h. Other Cost
-Rent and Utilities
- Transportation
- Office Supplies
- Store Supplies
- Sanitary Supplies
- Pre-operating Expense
- Repairs and Maintenance
- Fringe Benefits
- Miscellaneous Costs
- Utility Cost
 Business Implementation Strat
1. Get Staff and Management Involved
2. Invest in Training
3. Consider outside factors
4. Open communication

10 Ways to Implement Your Great Business Idea

(https://www.entrepreneur.com/article/250984)
1. 6. Learn the technicality
7. Networking and Trade shows
2. Share your business idea 8. Pick a good team to initiate growth
3. Find a mentor 9. Create a website suitable to your
business
4. Make a business plan
10. Use free resources online to reach
5. Understand your market needs and adapt to
out to customers

E
Learning Task 1: Answer the following::
1-2 What is a business plan?

3-7. What are the importance of implementing the business plan?

8-11. What are different strategies of business implementation?

12-20 What are the ways to implement business idea?

A
Learning Task 2: To start with your business plan, observe around your community and list
down three problems or issues that can be resolved by a product or service. Then think of
possible product or service that will be the solution to each problem as well as its objective.
Write your answer on the table.

Problem Product/Service Objective

1.

2.

3.
 Lesson
I
tion for understanding of concepts, underlying principles, and processes of starting and op-
erating a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to identify the reasons for keeping busi-
ness records.

D
A business record is a document (hard copy or digital) that records business dealing.
Business records include meeting minutes, memoranda, employment contracts, and accounting
source documents. It must be retrievable t later date so that the business dealings can be ac-
curately reviewed as required.

Importance of Keeping Good Records

1. Monitor the progress of the business
The good records need to monitor the progress of a business. Records can show
whether the business is improving, which items are selling, or what changes the
need to make.
2. Prepare the financial statements
The good record needs to prepare accurate financial statements. These include in
come (profit and loss) statements and balance sheets. These statements can help in dea-
ling with the bank creditors and help manage business.
3. Identify the sources of income
The money or property will received from many sources. The records can identify
the sources of income. This information will help to separate the business from non-
business receipts and taxable from non-taxable income.
4. Keep the track of the deductible expenses
Keep the record especially the expenses will greatly needed when preparing the tax
return.
5. Keep the track of the basis in property
The basis is the amount of the investment in property for tax purposes. The basis
will be used to figure out the gain or loss on the sale, exchange, or other disposition or
property, as well as deductions for depreciation, amortization, depletion, and casualty
losses.
6. Prepare the tax returns

7. Support items reported on the tax returns

Types of Records for Accounting and Tax Purposes
Business expenses Petty cash
Credit card statements Vehicle use log
Bank Statements Travel log
Annual tax returns Cash register tapes
Quarterly tax filings Credit card sales receipts
Payroll Invoices
Inventory Cancelled checks
Sales Check stubs
Income

E
Learning Task 1: Answer the following:

1-2. What is a business record?

3-9. What are the importance of keeping good records?

10-15. What are different types of business records?

A
Learning Task 2: Compare the business records used by the Private companies ver-
sus Government Agencies

Private Companies Government Agencies

 WEEK

Lesson 16
I
tion for understanding of concepts, underlying principles, and processes of starting and op-
erating a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to perform key bookkeeping tasks.

D Bookkeeping is the task of recording all business transactions amounts, dates,

and sources of all business revenue, gain, expense, and loss transactions. Bookkeeping is the
starting point of the accounting process. Having accurate financial records helps managers and
business owners answer important questions. Is the business making money, or losing it? How
much? Is the business on sound financial ground, or are troubling trends in cash flow pointing
to an instability of some kind? A sound bookkeeping system is the foundation for gathering the
information necessary to answer these questions.
Bookkeeping involves keeping track of a business's financial transactions and mak-
ing entries to specific accounts using the debit and credit system. Each entry represents a differ-
ent business transaction. Every accounting system has a chart of accounts that lists actual ac-
counts as well as account categories. There is usually at least one account for every item on a
company's balance sheet and income statement. In theory, there is no limit to the number of ac-
counts that can be created, although the total number of accounts is usually determined by
management's need for information.

The process of bookkeeping involves four basic steps:

1) analyzing financial transactions and assigning them to specific accounts;
2) writing original journal entries that credit and debit the appropriate accounts;
3) posting entries to ledger accounts; and
4) adjusting entries at the end of each accounting period. Bookkeeping is based on two basic
principles. One is that every debit must have an equal credit. The second, that all accounts
must balance, follows from the first.

Journal
A chronological record of all transactions is kept in a journal used to track all bookkeeping
entries. Journal entries are typically made into a computer from paper documents that contain
information about the transaction to be recorded. Journal entries can be made from invoices,
purchase orders, sales receipts, and similar documents, which are usually kept on file for a spec-
ified length of time. For example, the journal entry for a transaction involving a cash payment for
a new stapler might debit the cash account by the amount paid and credit the office supplies ac-
count for the value of the stapler.
 Journal entries assign each transaction to a specific account and record changes in those
accounts using debits and credits. Information contained in the journal entries is then posted to
ledger accounts.

Ledger
A ledger is a collection of related accounts and may be called an Accounts Payable Ledger,
Accounts Receivable Ledger, or a General Ledger, for example. Posting is the process by which ac-
count balances in the appropriate ledger are changed. While account balances may be recorded
and computed periodically, the only time account balances are changed in the ledger is when a
journal entry indicates such a change is necessary. Information that appears chronologically in the
journal becomes reclassified and summarized in the ledger on an account-by-account basis.
(https://www.inc.com/encyclopedia/bookkeeping.html#:~:text=The%20process%20of%20bookkeeping%20involves,end%
20of%20each%20accounting%20period.)

Format
The standard contents of the general journal are as follows:
1. Date. The year and month are not rewritten for every entry unless the year or month changes
or a new page is needed.
2. Account Titles and Explanation. The account to be debited is entered at the extreme left of
the first line while the account to be debited is entered slightly indented on the next line. A brief
description of the transaction is usually made on the line below the credit. Generally, skip a
line after each entry.
3. Posting Reference (P.R.). This will be used when the entries are posted, that is until the
amounts are transferred to the related ledger accounts.
4. Debit. The debit amount for each account is entered in this column.
5. Credit. The credit amount for each account is entered in this column.

Example: Record the following transactions.

Angela Zapanta established her clothing line business in Taytay Tiangge on January 1, 2021.
The following transactions occurred during this month.
Jan. 1 - Zapanta invested 100,000 cash to establish the business.
2 - Bought two sewing machines for cash, 25,000.
3 - Bought textile for cash, 15,000.
4 - Paid two months rent in advance, 10,000
5 - Withdrew cash for personal use, 2,000
The journal entry is shown below:

Date Account Title and Explanation P.R. Debit Credit

2021
Jan. 1 Cash 100,000
Zapanta, Capital 100,000

Initial investment
 2 Equipment 25,000
Cash 25,000
Bought two sewing machines

3 Textile 15,000
Cash 15,000
Bought textile.

4 Prepaid Rent 10,000

Cash 10,000
Paid two months rent in advance

5 Zapanta, Drawings 2,000

Cash 2,000
Withdrew cash for personal use.

E
Learning Task 1: Answer the following:
__________1. A chronological record of all transactions is kept in a journal used to track all
bookkeeping entries. Journal entries are typically made into a computer from
paper documents that contain information about the transaction to be recorded.
__________2. A collection of related accounts and may be called an Accounts Payable Ledger,
Accounts Receivable Ledger, or a General Ledger, for example. Posting is the process
by which account balances in the appropriate ledger are changed.
__________3. It is the task of recording all business transactions amounts, dates, and sources of
all business revenue, gain, expense, and loss transactions

4-7) Bookkeeping Processes

8-10) Complete the heading of the journal

Date (8) _____________________________________ P.R (9) _________ (10)_________

.
A
Learning Task : Given the following transactions below. Complete the table.
May 1 - Maria invested 200,000 for her online selling business.
2 - Bought computer worth 40,000.
3 - Bought computer table for cash, 2,000.
4 - Bought merchandise for resale on cash, 50,000.
5 - Paid installation fee for wi-fi connection, 3,500.

Date Account Title and Explanation P.R Debit Credit

.
2020
May 1 (1)____________ 100,000
Maria, Capital (2)_________

Initial investment

2 Equipment (3)_________
(4)_____________ 40,000
Bought two sewing machines

3 Computer Table (5)________

Cash 15,000
(6)__________________________

4 (7)______________ 10,000

(8)_____________ 10,000
Paid two months rent in advance

5 Utilities Expense (9)________

Cash 2,000
(10)______________________________
 Lesson
I
tion for understanding of concepts, underlying principles, and processes of starting and op-
erating a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to identify where there is a profit or loss
for a business

D
Profit is determined by the money you get from sales, cost of stock (if you sell product/s)
and of course all the expenses you incur. Keeping a close eye on each of these will ensure you
are maximizing the profit in your business.

A net loss is when expenses exceed the income or total revenue produced for a given peri-
od of time. It is sometimes called a net operating loss (NOL). Businesses that have a net loss
don't necessarily go bankrupt because they may opt to use their retained earnings or loans to
stay afloat. This strategy, however, is only short-term, as a company without profits will
not survive in the long-term. (https://www.investopedia.com/terms/n/netloss.asp#:~:text=A%20net%20loss%
20is%20when,or%20loans%20to%20stay%20afloat.)

Income Statement is a statement showing the performance of the enterprise for a given
period of time. It summarizes the revenues earned and expenses incurred for that period of time.
It illustrates just how much income your company makes or loses during the year by subtracting
cost of goods and expenses from total revenue to arrive at a net result, which is either a profit or
a loss.

An income statement differs from a cash flow statement, because unlike the latter, the in-
come statement doesn't show when revenue is collected or when expenses are paid. It does, how-
ever, show the projected profitability of the business over the time frame covered by the plan. For
a business plan, the income statement should be generated on a monthly basis during the first
year, quarterly for the second and annually for the third. (https://www.entrepreneur.com/encyclopedia/
income-statement#:~:text=Also%20referred%20to%20as%20a,expenses%20incurred%20and%20net%20profit.)

An income statement lists financial projections in the following format:

Income includes all revenue streams generated by the business.

Cost of goods includes all the costs related to the sale of products in inventory.
Gross profit margin is the difference between revenue and cost of goods.
Operating expenses include all overhead and labor expenses associated with the operations
of the business.
Total expenses are the sum of cost of goods and operating expenses.
Net profit is the difference between gross profit margin and total expenses.
 Information about the performance of an enterprise, in particular its profitability, is
required in order to assess potential changes in the economic resources that is likely to control in
the future. It is also useful in predicting the capacity of the enterprise to generate cash flows from
its existing resource base.

Sample Income Statement for profit and loss.

Profit (Service Business) Loss (Merchandising Business)

E
Learning Task 1: Identify the following:

____________1. It is a statement showing the performance of the enterprise for a given period of time

____________2. It is determined by the money you get from sales, cost of stock (if you sell product/s)
and of course all the expenses you incur

____________3. These include all overhead and labor expenses associated with the operations of the
business.

____________4. It is when expenses exceed the income or total revenue produced for a given period of
time.

____________5. It includes all the costs related to the sale of products in inventory.

A
Learning Task 2:
Compute for the income statement to determine whether profit or loss given the following infor-
mation:

Sales 500,000

Cost of Goods Sold 24,000

Operating Expenses 12,000

 Lesson
I
dation for understanding of concepts, underlying principles, and processes of starting
and operating a simple business.
This lesson introduces you to independently or with his/her classmates starts and
operates a business according to the business plan and presents a terminal report of its
operation.
At the end of the lesson, you are expected to generate an overall report on the
activity.

D
Activities in Implementing Business

1. Establishing the business objectives

Objective is a list of goals that the company hopes to achieve. The objectives must
be clear and concise. They must at the same time be realistic, demanding but achiev-
able.

2. Defining and assigning the task needed to attain the set objectives

This includes the activities that are to be performed, who are responsible for per-
forming the activities and what the activities are expected to produce. The task must
be simply and clearly stated.

3. Setting out timeframe

Each task and its duration must be formed within a clear timeframe. The result
clearly displays all the activities necessary with their deadlines.

4. Monitoring activities and progress

An important step in the business implementation is monitoring the activity and

its progress. It is necessary to identify any potential weaknesses and determine any
changes. The step is used to analyze the progress and success of the business plan.

Projected Time Table

(Excerpts from the book of Dr. Heidi Maneclang)

The entrepreneur should list the different activities or steps in the preparatory stage
of the project and present them in a Gantt chart to exhibit the duration of each activity. In
every activity the entrepreneur should indicate the length of time needed to do it and the
amount of money to be spent.
 The Gantt chart is an important part of the organization plan. It is a list of all activities to do
prior to the launching of the business and the time frame for accomplishing them. Preparing the
Gantt chart is a useful exercise that allows a person to have a view of the pre-operating activities
and the cost required in each activities. It can be in the form of bar chart, devised by Henry Gantt
in the 1910s, that illustrates a project schedule. Gantt charts can be illustrated in the start and
finish dates of the terminal elements and summary elements of a project. The terminal elements
and summary elements comprise the work breakdown structure of the project. Modern Gantt
charts also show the dependency of relationships between activities of the business operation.
Gantt charts can be used to show that the current schedule status using percent-complete shad-
ings.

The major activities, total pre-operating cost and the necessary documents in stating a busi-
ness should be shown in detail through a Gantt chart in the exhibit.
These activities are the following:

1. Writing of a business plan

2. Negotiation for financing
3. Registration of business
4. Construction of building or renovation of the place
5. Acquisition of equipment and machineries
6. Acquisition of furniture and fixtures
7. Promotional activities
8. Purchase of raw materials or merchandise
9. Hiring of Personnel
10. Training of Personnel
11. Dry Run
12. Start of operation, etc.

Sample Gantt Chart

ACTIVITY Jan. Feb. Mar. Apr May Jun

Writing of a business plan

Negotiation for financing
Registration of business
Construction of building or renovation of the place
Acquisition of equipment and machineries
Acquisition of furniture and fixtures
Promotional activities
Purchase of raw materials or merchandise
Hiring of Personnel
Training of Personnel
Dry Run of Operations
Start of operation
Overall Report on the Activity

Assignment of Activities

State the person (s)/ group (s) responsible for each of your project pre-operating activi-
ties. For individual assignments, you ma use the following presentation format:

No. Activity In-Charge

* State actual name of individual assignee, if possible.

For group assignments:

No. Activity Management Personnel Marketing Etc.

 E
Learning Task 1: Prepare a Gantt chart for your business plan and its implementation.

A
Learning Task 2: Prepare an overall report.
References

Acierto, Marife A., 2018. Entrepreneurship, Manila: Unlimited Books Library Services and
Publishing Inc.

Ballada, WIN, 2015. Basic Accounting Made Easy: DomDane Publishers & Made Easy Books

https://www.entrepreneur.com/article/247574

https://www.entrepreneur.com/article/250984

https:// www.inc.com/encyclopedia/bookkeeping.html#:~:text=The%20process%20of%20bookkeeping%
20involves,end%20of%20each%20accounting%20period.
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