LESSON PLAN

I. OBJECTIVES
At the end of 60-minute period, the students should be able to:
1.) Identify the components of a business plan and their function in creating or
making a business.
2.) Employ the components of a business plan in creating or making a business
3.) Value the importance of the components of a business plan in making a
business.

II. SUBJECT MATTER

A. Learning Area
Entrepreneurship
B. Topic
Components of a Business Plan
C. References

Unit V – Creating a Buusiness Plan (Module 5, page 2-3)

Flores, Marivic F. (2017) Business Plan. Unlimited Books Library Services and
Publishing Inc.

Allen, Kathleen R. (2016) Launching New Ventures: An Entrepreneurial Approach

7TH Edition. United States of America. Cengage Learning- Nelson Education Ltd.

Kuratko, Donald F. (2014) Entrepreneurship: Theory-Process-Practice. Ninth Edition.

Cengage Learning, Canada. Nelson Education Ltd.

Barringer, Bruce R. and Ireland R. Duane (2013) Entrepreneurship: Successfully

Launching New Ventures. Fourth Edition. British Library Cataloguing-in-Education
Data. Pearson Education Publishing

D. Materials
a.) Powerpoint Presentation
b.) White board marker

III. PROCEDURE

A. Preliminary Activities
1.) Greetings
2.) Prayer
3.) Checking of Attendance
4.) Room Cleaning
5.) Checking of assignments
6.) Review of the Past Lesson

B. Motivation
Activity (Please fix me!) 4-minutes
 The class will be divided into four groups. Each group will be given a set of
puzzle. The fastest group who can finish the puzzle within the given period will be
the winner and will be given prizes. The other groups will also recieve consolation
prizes.

C. Lesson Presentation

Components of a Business Plan

Definition of the business

In this section the following must be considered:

1. The nature of company;

2. Products or services offered by the company;

3. The nature of industry;

4. Opportunities available that can be exploited by the product or service to be offered

5. The rationale for the creation of the company; and

6. the rationale for catering to a specific market

There is a need to elaborately describe the foregoing top to provide a clear

understanding of what the business is to the various users of the plan

Market research and analysis

The collection and interpretation of data related to the firm’s market is undertaken.
These activities lead to the following:

1. Situational analysis and target market;

2. Marketing objectives and goals;

3. Marketing strategies;

4. Marketing tactic;

5. Schedule and budgets; and

6. Financial data and control

The situational analysis is a detailed description of the environment or the company and the
product, product online, or service at the time the plan will be initiated and implemented.

The marketing objective must be stated. An example of an objective is to be able to establish a

foothold in the market. To attain the objective, a goal or goals must be established like being able
to sell to a certain area or group of establishments.

Strategies refer to the actions taken to reach the goals and objectives. An example of a strategy is
direct marketing
Development plan

This portion of the business plan will show how the proposed product will be developed before it
is finally schedule for production. A description of additional work needed such as testing,
designing, modeling, prototype development or any other activity must be provided.

Manufacturing plan

The quality and quantity of the company’s product or service as described in the marketing plan
will be produced through a well-conceived manufacturing plan. This aspect constitutes as an
important portion of the business plan.

The manufacturing plan includes a description of the following: manufacturing, facilities,

location, size, rentals, purchases, required equipment, costs, labor requirements, required
equipment, equipmen costs, labor requirements and costs, inventory requirements and control
and others.

The distribution and service plan

It provides steps required to effectively bring the product or service to the market. Pricing, sales,
service policies, market penetration and timing are indicated

Also included are specific statements about when anticipated events are to take place. And the
assignment of specific responsibilities to specific individuals.

The organizational plan

This indicates how the total job is broken down into man-size jobs which are provided with
specific job titles. Each job title comes with a description of specific duties, and whom the
person assigned to the job will report. However, in writing the organizational plan as a part of the
business plan, only the description of the exact duties and responsibilities of each of the key
members of the management team must be provided.

The functions must be matched with the qualifications of the person assigned to do a specific
job. In this regard, the qualification of the management team must be described.

The development schedules

This portion of the business plan will provide information on the series of activities required to
make the business idea a fully operational undertaking. Each stage must indicate the amount of
time required for completion.

The financial plan

It is a document indicating the financing requirements necessary to support a given set of plans
in other areas. Its main components are the projected income statement and balance sheet,
supported by a cash budget, personnel budget, production budget, purchasing budget and break
-even analysis.

The projected income statement is a forecast of all items in the income statement of the firm for a
given period. The cash budget is a projection of future cash receipts and cash disbursements of
the firm over various intervals of time.

The financial plan is said to be the most important part of the business plan as it need to generate
profit.
The financial plan must have Capital equipment list, Balance sheet, Break-even analysis, Income
projections (profit and loss statements) and the like.

D. Generalization

1.) Why is it every component of a business plan important?

2.) Why do we need to know the components of a business plan?
3.) Why does every component of a business plan need to establish properly and
functionally?
4.) Cite one component of a business plan and give its meaning.
5.) Why is it the components of a business plan is significant on creating or making a
business?

E. Application

Activity
The teacher will call one student randomly using spin the wheel application. The
student who will called will be asked a question to answer.
Question: How will the components of a business plan can be effective in pursuing
one’s business?

IV. EVALUATION
I. Identification (1-5)
DIRECTION:
 Write the correct answer on the on the space provided before the number.
 Wrong spelling is wrong.
 Please write eligibly.

_____________1. It is a document indicating the financing requirements necessary to support a

given set of plans in other areas.
_____________2. It provides steps required to effectively bring the product or service to the
market.
_____________3. This portion of the business plan will show how the proposed product will be
developed before it is finally schedule for production.
_____________4. It includes a description of the following: manufacturing, facilities, location,
size, rentals, purchases, required equipment, costs, labor requirements, required equipment,
equipment costs, labor requirements and costs, inventory requirements and control and others.

_____________5. It is a detailed description of the environment or the company and the product,
product online, or service at the time the plan will be initiated and implemented.

II. Enumeration (6-10)

Enumeration the components of a business plan

V. ASSIGNMENT
Research about business ethics.