SELF LEARNING MODULE

ENTREPRENEURSHIP 11
SECOND QUARTER – WEEK 4&6

The Product Development

ENTREPRENEURSHIP 11
Quarter 2 – Module 2:
The Product Development

Department of Education│R4A│Division of Calamba City

Office Address: DepEd Bldg., City Hall Compound, Brgy. Real, Calamba City
Landline: 049–554 9830 loc. 14
Email Address: lrmds.depedcalamba@deped.gov.ph
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Dear Parents,
The Schools Division of Calamba City is one with every Filipino family in coping with the demands
of our modern times.
The current situation we are experiencing right now has caused immediate changes in our lives.
Above anything else, our priority is your child’s health and safety, but this does not prevent us from making
education happen. Even if your child will miss regular schooling this year, we want to assure you that no
student will be left behind, because learning is possible anytime, anywhere.
Thus, we present to you this Self Learning Module (SLM) to help your child meet the most
essential learning competencies in every subject and grade level, and will serve as your child’s major
learning tool, whether your child opts for online, modular or blended learning modality. The learning
activities in this SLM are arranged to lead your child to think critically, act skillfully, and reflect deeply on
each lesson and practice into real life skills. Most importantly, this SLM promotes self-paced learning as
your child can always review the least understood lessons as often as he/she pleases.
Since the students will be seeing their teachers less than before and will be staying with you at
home more often, then we wish to request one thing from you: please encourage your child not to stop
learning. Consider your child like our hero and fellow Calambeño Jose Rizal who, despite his studies
overseas, would always recall the most significant learning experience he had – his lessons with his
parents.
Thank you very much in being one with us! Together, let us envision that, by the end of this school
year, we will see your child as one responsible young person with a heart and mind for humanity, for
nature, for the country, and for God.
Dear Learner,
Welcome to a brand-new year of learning! We hope you are doing fine, although we understand
that you already miss going to school and spending fun, learning moments with your teacher in front and
your classmates just right beside you. Unfortunately, we have to wait a bit further for the situation to go
back to normal mode. But one thing is for sure—the opportunity for your learning cannot wait any longer.
By this time, you have already chosen your learning modality. Is your access to internet strong
enough for online learning mode, or does your lack of resources make you prefer modular learning? Well,
you do not have to worry as to what your case may be, because even if you cannot come to school, SDO
Calamba City is bringing the school right in your homes.
This is our gift to you: The Learning Packets that will help you meet the knowledge and skills
necessary for every subject in your grade level. Your teachers have worked hard in designing these
Learning Packets, and we guarantee that through this, everyday will be a wonderful learning experience
for you.
Please take time to read and do the activities in these Self Learning Module (SLM) as if you are
reporting in school. Set a regular study schedule for you as much as possible, but keep in mind that these
SLM will enable you to learn at your own pace. If you do not understand a particular lesson, the SLM
would not mind you flipping back the pages over and over again for review. Also, remember to keep in
touch with your teachers. Send them a message through your online sessions or write them a note as
you do your modular activities. With this, we wish you good luck in your studies, and we hope that you
will remain happy and enthusiastic in learning!

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
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I What I need to know?

This module will introduce you to the fundamentals of product development. Before
commercializing a new product or service, the entrepreneur must focus first on refining the product or
service and validate its market acceptability. This new product does not have to be a totally new product.
It can be a new product line from the existing business of the entrepreneur, a product line extension, an
enhancement, or a repositioning of an existing product. You will also know the importance of crafting a
business model as a blueprint of the business operations. The entrepreneur must account everything that
has something to do with his or her business whether originating from operating, financing, or investing
activities. You have glimpsed the basic financial statements that aid entrepreneurs on how to manage
their finances.

The module focuses: Fundamentals of Product Development.

You are expected to:
1. develop a product or service description.
2. create a prototype of the business or service.
3. develop a business model.
4. prepare a forecast revenue of the business.

I What is new?
Activity 1: Are you in or out?

Situation: You are inside a mall and one of the stores would like to have you free taste their
product. Are you in or out?
Guide Questions:
1. List your own free taste experience or free service. What are those products or services?
__________________________________________________________________________________
2. How was your experience?
__________________________________________________________________________________
3. What do you think are the reasons why such stores do free tasting or free servicing?

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
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D What I know?
Pretest: Available via google classroom.

Lesson 2 The Product Development

D What is in?
Activity 2: The Power of words

Find the 10 words which can more easily convince your customers to take the leap and make the
purchase. Highlight your answers.

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Email Address: 342253@deped.gov.ph
 4

D What is it?
(1) Product Development is the process of developing, testing, and commercializing a product or service
with the ultimate objective of solving the problem of the primary target market. It is composed of four
sequential steps: (a) developing a product or service description, (b) creating a prototype, (c) testing the
prototype, and (4) validating the market.
(A) Product or Service Description simply describes how a product or service works and how it
benefits the customers. A clear product or service description is important because this will serve as the
blueprint of all business operations. Therefore, the entrepreneur must take note of the following regarding
the product or service description:

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(a) It should directly address the primary target market in a personal manner using everyday
language. The entrepreneur should put himself or herself in the customer’s shoes, where the product
description will be addressed to.
(b) It should highlight the feature that will cater to the customer’s needs or address the customer’s
problems.
(c) Realistic superlatives should be used for the product description. Motherhood statements such
as “word-class service or product excellence” may not matter to the customers at all.
(B) Creating a Prototype of the Product or Service. A prototype is a preliminary model or
sample of a new product or service that s created to test a product concept or service process. This is an
exciting process for the entrepreneur because he or she will be able to see that his or her ideas will soon
become a tangible reality. The entrepreneur’s creativity and ingenuity will be used in creating the
prototype.
Creating a prototype is the stage where the entrepreneur can experiment, develop, and make some
improvements in the potential product or service. The objective of the entrepreneur at this stage is to
verify if the product or service concept will work at the simplest, fastest, and cheapest way.
One best technique for creating the best prototype is by studying the competitor’s product or service. The
entrepreneur will try to scrutinize the parts and functions, as well as the design and other attributes of that
product, in hopes that he or she will be able to address some problems in the competitor’s products and
come up with the most efficient and effective prototype. As for the services, the entrepreneur may try to
be availing the competitor’s services and will take note of their operations, such as service delivery,
location, facilities, and ambiance. He or she will then take note of the pros and cons of the service to
create the prototype, simulate the service by trying it with his or her friends or relatives, and then get their
feedback.
Some entrepreneurs create a video presentation or a miniature prototype, so they will be able to explain
the details, if the product is to be viewed by a panel of specialists. The scope should be related to the
entrepreneur’s budget. After creating the prototype, he or she should be ready to test it.
(C) Testing the Product Prototype. All the efforts exerted in the creation of prototype will be put
to waste if the prototype will not be tested. Testing the prototype will uncover the final loopholes that
need to be fixed before commercialization. It gives the entrepreneur a leeway to examine and scrutinize
the prototype and provide feedback as to what can be improved before the launch. These improvements
and changes must be completed first before moving forward to the next step.
For a prototype that has already been refined, testing it for the last time after the changes have been
made will validate its readiness for commercialization. The following testing methods are applied by the
entrepreneur:
Testing Methods Definition
1. Focus Group Discussion The participants will provide relevant insights
about the new product or service. The objective of
the FGD is to identify errors, deficiencies, and
issues that may impede the success of the
product. Participants also need to provide
suggestions and practical solutions on how to
improve these deficiencies.
2. Legality and ethical test Prior to launching, the entrepreneur must ensure
that the product or service complies with all
relevant laws and regulations and has a necessary
license or permit to operate a particular business.
For example, food products must be cleared first

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Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
 6

with the Bureau of Food and Drugs (BFAD) before

they are offered to the public. The entrepreneur
must also make sure that the
manufacturing/production of goods or offering of
the service does not generate ethical issues such
as being threats to health, safety, and
environment.
3. Safety test The entrepreneur must ensure that the product is
safe to use, safe to be consumed (food and
beverages), and safe to be applied (cosmetic
products). The product should not in any way harm
the customer or put the customer in peculiar
situations. In service, the entrepreneur must
ensure that the processes to be performed by the
service provider must not be detrimental to the
safety and health of the customer.
4. Product Costing Test The entrepreneur must examine every stage of the
manufacturing process of the service blueprint to
evaluate and finalize the costs involved. This is the
time when the entrepreneur can match the
expected costs versus his or her budget.
Modification in the manufacturing process or
service blueprint can still be made at this point to
align with the cost objective of the entrepreneur.
5. Component test Each component of the product or service must be
tested independently to identify component
failures for goods or service failures for services.
Any failure identified must be redesigned and
tested again until it becomes fully operational and
functional.
6. Competitor’s product/ service test The entrepreneur must test a similar line of
products or the competitor’s product or service
itself to compare and get the best practices to be
applied to the new product or service.

(D) Validation of Market Acceptability is the process of finding out if the intended primary target market
will be buying the product or availing the service. Market acceptability is a critical factor that the
entrepreneur must validate before launching the product or service, because this can strongly suggest if
the business will be successful or not. It either validates or disconfirms the perception of the entrepreneur
about the sustainability of the chosen primary target market. It also tests whether the value proposition
and unique selling proposition are appropriate or there is a need to improve on them. This is also the time
to deeply understand the value that the product or service brings to the customer and their prospective
purchase behavior, because it helps the entrepreneur build a more relevant and meaningful product or
service. This process is the last step before the product or service can be introduced to the market. The
following objective questions are more likely to be answered in the whole process of market acceptability
validation:
(1) Will the primary target market like the product or service?
(2) Will the primary target market buy the product or service when it is already in the market?
These questions can easily be answered if the entrepreneur will perform the following activities:

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
 7

(1) Use the most strategic marketing research tool (FGD, survey, observation, interview, online
survey, e-mail, or a combination of these research tools), wherein the entrepreneur can get the most
relevant answers in the cheapest way possible.
(2) Prepare relevant open-ended questions that answer the objectives above. Do not go around
the bush and be straight to the point. Keep the questions to a minimum because the target market might
get bored and not finish the whole questionnaire.
(3) Find market experts who also target the same market but are not directly competing with the
entrepreneur. For instance, a market expert sells cars to a specific market segment and it so happens
that an entrepreneur sells real state. The entrepreneur can leverage on the knowledge of the market
expert regarding that market segment because they almost have the same demographic data
requirements. The entrepreneur can use these data to improve the product or service.
(4) Collect all the data, analyze them, and prepare a summative report that answers the objective
questions that were mentioned earlier.
(2) The Business Model

Figure 1: Business Model Canvas: Alexander Osterwalder

A business model describes how a business creates, delivers, and captures value.

The business model canvas is made up of nine parts that, together, end up describing the business
model. See figure 1.

Now we are going to walk through each component of the business model canvas. As we are going
through each element, we will also map it out with an example for Zoom, which is a company that
creates software for video conferencing. See figure 2.

Business components Key questions

o What value do we deliver to the
1. Value propositions
customer?
o Which one of our customer’s
problems are we helping to solve?

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o What bundles of products and

services are we offering to each
customer segment?
o Which customer needs are we
satisfying?
o Characteristics: newness;
performance; customization;
“getting the job done”; design;
brand/status; price; cost reduction;
risk reduction; accessibility;
convenience/usability

o For whom are we creating value?

2. Customer segments
o Who are our most important
customers?
o Mass market; niche market;
segmented; diversified; multi-sided
platform

o Through which channels do our

3. Channels
customer segments want to be
reached?
o How are we reaching them now?
o How are our channels integrated?
o Which ones work best?
o Which ones are most cost-
efficient?
o How are we integrating them with
customer routines?
o Channel phases:
▪ Awareness – How do we
raise awareness about our
company’s products and
services?
▪ Evaluation – How do we
help customers evaluate
our organization’s value
proposition?
▪ Purchase – How do we
allow customers to
purchase specific products
and services?
▪ Delivery – How do we
deliver a value proposition
to customers?
o After sales – How do we provide
post-purchase customer support?

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o What type of relationship does

4. Customer relationships
each of our customer segments
expect us to establish and maintain
with them?
o Which ones have we established?
o How are they integrated with the
rest of our business model?
o How costly are they?
o Examples: personal assistance;
dedicated personal assistance;
self-service; automated services;
communities; co-creation

o For what value are our customers

5. Revenue streams
really willing to pay?
o For what do they currently pay?
o How are they currently paying?
o How would they prefer to pay?
o How much does each revenue
stream contribute to overall
revenues?
o Types: asset sale; usage fee;
subscription fees;
lending/renting/leasing; licensing;
brokerage fees; advertising
o Fixed pricing: list price; product
feature dependent; customer
segment dependent; volume
dependent
o Dynamic pricing: negotiation
(bargaining); yield management;
real-time-market

o What key resources do our value

6. Key resources
propositions require?
o Our distribution channels?
o Customer relationships?
o Revenue streams?
o Types of resources: physical;
intellectual (brand patents,
copyrights, data); human; financial

7. Key partners o Who are our key partners?

o Who are our key suppliers?
o Which key resources are we
acquiring from partners?

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o Which key activities do partners

perform?
o Motivations for partnerships:
optimization and economy;
reduction of risk and uncertainty;
acquisition of resources and
activities

o What key activities do our value

8. Key activities
propositions require?
o Our distribution channels?
o Customer relationships?
o Revenue streams?
o Categories: production; problem-
solving; platform/network

o What are the most important costs

9. Cost structure
inherent in our business model?
o Which key resources are most
expensive?
o Which key activities are most
expensive?
o Is your business more: cost driven
(leanest cost structure, low price
value proposition, maximum
automation, extensive
outsourcing); value driven (focused
on value creation, premium value
proposition).
o Sample characteristics: fixed costs
(salaries, rents, utilities); variable
costs; economies of scale;
economies of scope

You can also refer to this video via you tube channel: 9:41 mins.
www.youtube.com/watch?v=IP0cUBWTgpY

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Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
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Figure 2: Zoom Business Model Canvas

(3) Capital is the money that will be allocated by the entrepreneur to establish a business. It should not
be mixed with the personal money of the entrepreneur. A business is a separate entity and should not be
mixed with the personal finances of the entrepreneur.
Several entrepreneurs produce capital out of their personal savings. This money came from a disciplined
habit of consistently saving when the entrepreneur used to be an employee. Some of the budding
entrepreneurs borrow money from families or friends, whereas some look for interested investors or
stakeholders. The entrepreneurs can also turn to banks or financial institutions for capital, but they usually
require collaterals and base their credit decisions on the business performance (i.e., the net income of
the business). Some startups may find difficult to secure a loan from the banks because of the
performance angle as one of the qualifications.
Collateral refers to a high value asset that is submitted by the business to the bank when applying for a
loan and will be subject for repossession if the business defaults. Regardless of where the capital was
sourced, putting this capital at risk is one of the major reasons that most entrepreneurs are afraid to
engage in a business venture. But those who take the risks also gain the experience and use this
experience to succeed. Not all the entrepreneurs became successful the first time they ventured into
business. All of them experienced failures and used these failures to their advantage.
A business opportunity can only be considered a real one when the entrepreneur recognizes that the
opportunity may bring him or her revenue. Revenue is the output of a sale wherein the sales price
exceeds the cost to produce the product or render the service. Revenue is considered earned when the
product is already sold, or service has been rendered regardless of if the business is paid in cash or
credit. Revenue is considered deferred when the product or service has not yet been delivered or sold
but the customer already paid in advance.
After establishing that the busines opportunity will really bring revenue, the next step is to estimate how
big the revenue is on an annual basis. This will give the entrepreneur an inkling on where his or her hard-
earned money will go. It is not easy to estimate potential revenue, as it requires a thorough analysis of

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 12

external and internal factors that can affect the business. All of these external and internal factors must
be incorporated in the projection computation so that it will appear realistic and will not mislead the
entrepreneur.
(4) Factors Affecting Estimation of Revenue
(4.a) The economy and the external primary target market. Like finding business opportunities,
estimating revenue is greatly affected by the entire economy and the behavior of the primary target
market. The entrepreneur must be able to incorporate the overall health of the economy in its estimation
of projected revenue. He or she needs to know if the economy is either booming, stable. or slowing down.
However, there will be times when the overall economy is not reflection of what the entrepreneur’s primary
target market is experiencing. Therefore, the entrepreneur must also do separate revenue estimation for
the primary target market as to whether it is booming, stable, or slowing down.
(4.b) The external competitors. The entrepreneur must devise a comprehensive competitive profile
matrix- a chart that details the relevant data both direct and indirect competitors and how these factors
affect profitability. Direct competitors are those that offer the same product/product lines or services as
the entrepreneur. Indirect competitors are those that do not offer the same products or services but
influence or affect the entrepreneur’s market share (e.g., if the entrepreneur sells soft drinks, his or her
market share will be affected by those who sell other beverage products such as mineral water, iced tea,
juices, or alcohol drinks).
The entrepreneur must plot the strengths of each competitor, its financial data, and its respective market
share. A thorough analysis must be conducted to assess whether the entrepreneur will really earn from
the business opportunity.
When entering a market dominated by stronger and larger competitors, the challenge for the entrepreneur
is to come up with a highly differentiated product or service with a very strong unique selling proposition.
Otherwise, he or she will be “eaten alive” by these large players. What these large players will do to beat
a newbie in the market is reduce their prices leveraging on economies of scale and still earn profit. To
compete, there is no choice for the new entrepreneur but to also reduce price, thereby greatly affecting
profitability.
When entering a market with weaker and smaller competitors, the challenge is to compete with them
directly. Unlike the first one, however, there is a bigger chance here to succeed and take away the market
shares of the competitors.
The entrepreneur can also enter a market with no competitors. The rarely happens thought; these days,
there are virtually no unique products or services, or there are only few entrepreneurs who want to venture
in an entirely different market that no one has tried yet.
Aside form the basic financial data, the entrepreneur must also be vigilant in reviewing and assessing the
business and marketing strategies of the competitors. Those that were proven effective strategies of the
competitors must be emulated and altered a bit by the entrepreneur, and those that were certified as
ineffective must not be repeated to avoid unnecessary losses. Understanding the strategies of the
competitors allows the entrepreneur to neutralize its effect to his or her business.
(4.c) The internal business. To assess potential revenue, the entrepreneur must also devise his or her
own marketing strategies based on external and internal scan and from the competitive profile matrix.
With these data, the entrepreneur can now craft strategies that can outweigh those of the competitors.
However, the entrepreneur must always be on the lookout because competitors do not just sit and wait
to be beaten. They will always react to what their competitors are doing. They can always resort to cut
prices, improve features and benefits of their product or service that can differentiate them from the rest,
or implement more strategic and effective marketing tactics. Each of the players in the market is thinking
ahead and monitors the moves of the others. To keep at pace, the entrepreneur must always be alert and
reactive to all kinds of contingencies, or else the revenue will suffer.
(5) Budgets and Forecasts

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Financial forecasts assist you to meet your business goals. They are a future prediction of your business
finances, as compared with statements, which provide details of actual results or progress.
Predicting the financial future of your business is not easy, especially if you are starting a business and
do not have a trading history. However, forecasting and adjusting frequently will enable you to become
more accurate.
Monthly or weekly forecasts may be necessary when starting your business, experiencing rapid growth,
or having financial difficulties. Regular forecasts allow you to closely monitor your finances and develop
strategies to fix problems before they become major issues.
Monthly or quarterly forecasts may be more appropriate for a stable, established business.

Financial forecasts may include:

• start-up costs
• sales
• expenses
• cost of goods (COGS)
• cash flow
(a) Start-up costs. Whether starting a new business or purchasing an existing one you will need to factor
in start-up costs, such as:
✓ legal or accounting fees
✓ insurance costs
✓ furniture, equipment, supplies or fit-out.
✓ stock
✓ advertising
✓ permits
✓ cash required to fund the business until you start collecting payments from
customers.
✓ staff wages
✓ leasing costs of property, plant, and equipment
✓
(b) Sales. Estimating the sales your business will generate over the forecast period can be difficult. If you
are starting a new business, you can base your estimates on market research and industry benchmarks.
For an established business, consider previous sales data over the same time period. You will also need
to consider the current market and other economic conditions.
(c) Expenses. An expense forecast estimates your ongoing operational costs over a period of time.
Business expenses may include (amongst others) rent, insurances, vehicles, advertising, employee
wages, and accounting and legal fees.
If you are starting a new business, base your forecast on market research and industry benchmarks. If
you are already operating a business, use records from previous years to assist you. Make sure you allow
for any likely changes, such as an increase in costs or employing additional staff.
You can break your expenses into four categories:

Categories Definitions
1. One-Time Expenses • These are expenses that you will only incur
once, very infrequently, and/or irregularly.
• Many of these expenses will be paid at the
beginning of the life of your business.
• Examples: purchase of a building, realtor
fees, purchase of office furniture
2. Variable Expenses • Tied directly and proportionately to
changes in production amount or number
of units sold.

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• The total amounts of these expenses will

3. Fixed Recurring Expenses (non-labor)
4. Fixed Recurring Expenses - Labor Costs
likely change over time.
• Examples: raw materials, packaging,
hourly production wages, sales
commissions, inventory, shipping costs.
• Are not dependent on changes in
production amount or number of units sold.
• Whether you sell 100 units or 100,000
units, these costs will remain the same.
• They will likely be the same amount each
week, month, year, etc.
• Examples: rent, insurance, dues and
subscriptions, equipment leases,
payments on loans, depreciation, and
advertising.
• Labor costs are often the highest costs for
early-stage companies.
• Most financial projections will include a
“Salaries” or “Headcount” tab or section.
• Typically, labor costs are listed on a
monthly basis
• There are generally 2 metrics to consider
when you are determining labor costs:
1) The annual pay for a specific position
(divide number by 12 to determine the
monthly pay).
2) The hire date for each individual

(d) Cost of Goods (COGS). If you sell physical products you will need to forecast how much it costs to
produce or stock them. The COGS forecast relates to your sales forecast. If you are forecasting an
increase in sales, the cost of producing the goods will also increase (you will need to purchase more
components or stock). To forecast COGS, you will need to include all the direct costs associated with
production and preparation for sale. These may include:
✓ the wholesale cost of buying completed goods, raw materials, or parts.
✓ packaging
✓ freight and freight insurance
✓ commissions paid on sales.
✓ direct labor costs used to manufacture the product.
(e) Cash flow. A cash flow forecast estimates the amount of money you expect to flow in (receipts) and
out (payments) of your business, including projected income and expenses. A forecast is usually done
over a 12-month period but could also cover a shorter period, such as a month.
Cash flow forecasts can help you identify when you may have extra cash available or experience
shortages, so you can make the right decisions for your business.
It is important to review your cash flow forecast regularly against actual results. A forecast can provide
warning signs that may help you to avoid future financial problems. Watch out if your cash payments are
more than cash receipts – you will run out of money.

(6) The Three Financial Statements. The 3 common financial statements are: (a) The Income
Statement (b) The Cash Flow Statement (c) The Balance Sheet

Financial Statements Definitions

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Income Statement The income statement measures profitability over a period

of time (month, quarter, year)
Profitability = revenue – expenses
Another word for “profit” is “net income” or “net profit”
Cash Flow Statement The Cash Flow Statement reports the cash generated and
used over a period of time (month, quarter, year). The
statement allows you to understand how much cash is left
in the bank at the end of a given month.
Since a business cannot survive without cash, a forecasted
cash flow statement is a critical tool for a startup because it
allows them to know how much cash they need to start with
and how much they will need to raise from investors at any
given point of time to achieve each milestone goal they have
set for themselves.
There are traditionally 3 sections of a Cash Flow
Statement
1. Operating Activities – cash gained/lost from actual
business operations.
• Indicates the business' ability to generate sufficient cash
from its continuing operations.
2. Investing Activities – cash gained/lost from buying (and
selling) property, plants, and equipment (PPE) and
purchasing (and selling) long-term investments.
• Indicates how the business plans to expand.
3. Financing Activities – cash gained/lost from issuance and
reacquisition of a firm's debt and capital stock, and dividend
payments.
• Indicates how the business plans to finance its expansion
and/or reward shareholders.
Balance Sheet The Balance Sheet displays a company's assets, liabilities
and shareholders' equity at a specific point in time.
• Assets – what a company owns.
• Liability – what a company owes.
• Shareholders’ Equity – the amount invested in the
company by shareholders.
Accounting Equation:

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
 16

E What is more?
Activity 3: Check for Understanding
1. Explain the importance of the fundamentals of product development.
__________________________________________________________________________________
2. Explain why do we need to forecast our revenue as start-ups?
__________________________________________________________________________________
3. Why statements such as “word-class service or product excellence” may not matter to the customers
at all?
__________________________________________________________________________________
4. Why testing the prototype is mandatory?
__________________________________________________________________________________
5. Differentiate the three financial statements.
__________________________________________________________________________________

E What I can do?

Activity 4: My Own Product/Service Description
Improve your product/service description from last quarter and align with what is being discussed here.
For more effectiveness, show your answers creatively by crafting your own print ads. Use the rubrics
below so that you will be guided. Also, you can watch the video link below.
Tips for print Advertising Ideas for Print Ads:
www.youtube.com/watch?v=RSa5beNb4Y4&feature=emb_title
Rubrics: Print Advertisement
Perfect Score: 20

Criteria Above (5) Average (4) Below (3)

Message Writing is engaging and
shows an outstanding
writer's voice. Audience
clearly understands the
product and the
message behind it.
Word choice is engaging,
and you have a distinctive
writer's voice. Audience
clearly understands what
this product is all about.
Word choice is mostly
engaging. You have
some variety in the style
of ad.

Slogan and Logo Excellent use of color Good use of color and Includes some color but
and space. Excellent space. Ad is well organized. overall poor
organization. Excellent Effective slogan and logo. organization. Poor
slogan and logo. slogan and or logo,

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
 17

Target Audience Ad is completely Ad is mostly suitable and Ad is somewhat

suitable and relevant for relevant for the target suitable and relevant for
the target audience. audience. the targeted audience.

Persuasive Techniques 5 or more persuasive 4 persuasive techniques 2-3 persuasive

techniques are used in used in the print techniques effectively
the print advertisement. advertisement. Effect is used in advertisement.
Effect is persuasive. persuasive. Effect is persuasive.

E What else I can do?

Activity 5: Forecast My Goals (at least one year)
Before start-ups, let us assume some values and consider our proposed business from last quarter.
Use the following to make your financial forecast:

• start-up costs
• sales
• expenses
• cost of goods (COGS)
• cash flow

A What I have learned?

Activity 6: My Business Model
Walk through each component of the business model canvas for your start-up business. Use your
proposed business from last quarter and refer to the rubrics below to be guided and follow the Business
Model Canvas.
Rubrics: Business Model
Perfect Score: 27
Components Above (3) Average (2) Below (1)

1. Value Proposition Able to identify all the Able to identify most of the Able to identify some of the
products and services a products and services a products and services a
business offers to meet the business offers to meet the business offers to meet the
needs of its customers. needs of its customers. needs of its customers.

2. Customer Segments Able to analyze and identify Able to analyze and identify Able to analyze and identify
all customer segments, most customer segments, some customer segments,
channels, and relationships channels, and relationships channels, and relationships

3. Channels Able to identify all channels Able to identify most Able to identify channels of
of distribution with citations channels of distribution with distribution with citations for
for each specific and citations for each specific each specific and alternative
alternative channels. and alternative channels. channels.

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph

4. Customer Specific understanding of
Relationships the complete customer
relationship needs.
5. Revenue Streams Specific pricing tactics for
each customer segment.
6. Key Partners Able to Identify all possible
key partners accurately
7. Key Activities Able to specify the most
important activities in
executing a company's value
proposition
8. Key Resources Able to identify all the
resources that are
necessary to create value
for the customer
9. Cost Structure Explanation of critical costs
for product/service with
sources for MULTIPLE
markets. Complete
spreadsheet with detailed
fixed and variable for a
startup or in-house resource
requirement by MARKET.
A Additional Activities
Activity 7: Into the Product
Instructions:
1. With your assigned group in Feasibility Study, prepare the following:
(a) develop a product/service description
(b) create a prototype
(c) video teaser (1min)
2. The tasks will be assigned to your group leader via google classroom. Make sure you have assigned
a group name and group leader.
3. Uploading of output will be done by your group leader only.
A What I can achieve?
Post Test: Available via google classroom.
Address: Chipeco Ave., Brgy. 3, Calamba City
Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph
Clear understanding of the
complete customer
relationship needs.
Specific pricing tactics for
customer segment.
Able to Identify most
possible key partners
accurately
Able to specify most of the
important activities in
executing a company's value
proposition
Able to identify most of the
resources that are
necessary to create value
for the customer
Explanation of critical costs
for product/service with
sources. Complete
spreadsheet with detailed
fixed and variable for a
startup or in-house resource
requirement.
18
Missing understanding of
needed relationship with
customer.
General pricing tactics for
customer segment.
Able to Identify some
possible key partners
accurately
Able to specify some of the
most important activities in
executing a company's value
proposition
Able to identify some of the
resources that are
necessary to create value
for the customer
Missing or general critical
costs for product/service
with outsources. In-complete
spreadsheet with detailed
fixed and variable for a
startup or in-house resource
requirement.
 19

References
Books
Aduana, N.L(2017), Entrepreneurship in Philippine Setting for SHS, C&E Publishing, Inc.
Batisan, R. S. (2016), Entrepreneurship, DIWA Learning Systems Inc.

Websites
Dwivedi, S. (2020), How to design a business model canvas, retrieved from
shrutiproductmanager.medium.com/how-to-design-a-business-model-canvas-926647f3a4ad

Chapter 4- Business Models, Retrieved from

openpress.usask.ca/entrepreneurshipandinnovationtoolkit/chapter/chapter-4-business-models/
Budgets and forecasts, Retrieved from www.smallbusiness.wa.gov.au/business-advice/financial-
management/budgets-and-forecasts
How to Prepare a Financial Forecast, retrieved from www.jumpstartinc.org/wp-
content/uploads/2016/09/Financial-Projections-Tool-9616.pdf
Fenell, Z. (2019), The importance of a business model, Retrieved from izfluent.com/facts-6818615-
importance-business-model.html
(2019), The easy guide to the Business Model Canvas, Retrieved from
creately.com/blog/diagrams/business-model-canvas-explained/.
(2013), Tips for print Advertising Ideas for Print Ads, Retrieved from
www.youtube.com/watch?v=RSa5beNb4Y4&feature=emb_title

Print Advertisement, Retrieved from www.rcampus.com/rubricshowc.cfm?code=G533A8&sp=yes&

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: 342253@deped.gov.ph