SHS

Entrepreneurship
Module 6: Quarter 1 – Week 6
Entrepreneurship
Grade 11/12 Module 6: Quarter 1 - Week 6
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Alex C. Somera, T-I

Editor: SDO La Union, Learning Resource Quality Assurance Team
Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II
 Entrepreneurship
Module 6: Quarter 1 - Week 6
 Target

Now that you have learned how to test potential approaches in planning your
business based on competitiveness, feasibility and consumer requirements, it is
important for you to think about the most suitable goods and services that satisfy
the market need. You may have in mind a range of goods and services, and think
about the task of how you can innovate to develop it and respond to the changing
consumer needs.

The satisfaction of customers for the goods or services will be dependent on

the collective factors you employ in your business. Significant amounts of this,
however, depend on the type of goods or services you deliver.

After going through this learner material, you are expected to:

1. Select the best product or service that will meet the market need.
(TLE_ICTAN11/12PC-Ia-1)

Before going on, check how much you know about this topic. Answer the pretest
on the next page in a separate sheet of paper.

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 Jumpstart

For you to understand the lesson well, do the following activities.

Have fun and good luck!

Activity 1: READ ME! UNDERSTAND ME!

Directions: Read carefully and understand the following paragraphs then answer
the questions on the next page. Write the letter of your answer in another sheet of
paper.

A key question that start-up entrepreneurs frequently ask is what to sell.

What goods or services can you offer that make you money? It is important to
choose the right product or service. To be a successful entrepreneur in a
competitive market, you need to cultivate the ability to pick and sell the best
products or services to your clients. This is a critical step because the choice of a
product or service can make or break your business.

Most of the goods and services consumed today vary from those consumed
five years ago. So five years from now, the majority of products are going to be
new and different from those used today.

Consumers have thousands of products and services available today. Even

in this time of pandemic, producers and manufacturers uninterruptedly produce
goods and services and have sustained continuous supply. And there are
unlimited opportunities for you to enter the marketplace and compete effectively
with a new product or service that is, in a way, better than what your competitors
already offer. Note, the ability to select which product or service is essential to
your success.

Identifying new products or patterns will speed up your future financial

performance. It is especially important if you want to put yourself at the start of
the lifecycle of exiting, fresh, easy-to-sell goods and services.

New product ideas and concepts must be based on a detailed examination

of customer needs, desires, wishes and aspirations. A business which creates new
product concepts and marketing strategies always create excitement in the
market. For any serious entrepreneur trying to “catch the wave” of new product
phenomenon, discovering innovative new products should be a high priority.

The most important thing you can do is to deliberate before you decide
what to sell. So the easier your choice would be, the more you think about a
product or service before you put it into the market.

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 1. What do entrepreneurs frequently ask in starting a business?
A. Where is the location of the business?
B. What is the name of the business?
C. What is the best product to sell?
D. How much will be the capital?
2. Why selecting an appropriate product important?
A. The choice of a product can make or break your business.
B. To gain a competitive advantage against other products.
C. A good tool to become a popular entrepreneur.
D. To gain a good profit
3. What will be the outcome if you have chosen the best product to sell?
A. It will speed up future financial performance.
B. Competitors will try to emulate your product.
C. No expansion of business is in sight.
D. Your product will become obsolete.
4. The selection of product must be based on what factor?
A. What other business is currently selling.
B. Your capacity to produce resources.
C. Customer’s needs and desires.
D. Current political condition.
5. What does it mean to “catch the wave”?
A. Go with what’s popular
B. Seize an opportunity
C. Imitate a product
D. Adapt to change

Discover

The following are few questions to help you narrow your focus in the selection
of the best product or service that will work for you:

1. What are your primary considerations for choosing a particular product?

Make a list of your selection criteria, and what you think are important to you
in identifying what business to engage in.

There are several reasons why it is necessary to select a product. These

factors include:

a. financial gain to your company,

b. low capital requirements,
c. favorable return rate,

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 d. adaptable successful strategy,
e. ready for manufacturing and innovation,
f. easy to reach sources or suppliers,
g. relatively low risk and realistic time frame.

2. Can you meet the needs of the customer and solve a specific problem?

Your product must be an answer to a need or an opportunity. You need to

know how your products or services can assist customers. This must have a proper
significance that can be understood, desired and needed by consumers. Include in
your product information and sales materials how customers can benefit from your
products.

Example: helping to reduce time, effort and expense.

3. How capable are you in producing your own product?

Just as an athlete needs to know his physical condition before he enters a

race, you must also know if you have the time, resources and capability to produce
your product.

Many entrepreneurs make the mistake of going forward with a business idea
only to find that they cannot afford the manpower required, or do not have the
resources to outsource the product development. You must also evaluate at the onset
how you can scale up the production if there is a strong demand for the product.

4. What is the size of your potential reachable market?

You need to at least get an idea of the size of your market. Know who are likely
to use or benefit from your products. Many small and home business entrepreneurs
view market research as an unwanted and costly expense, but realize who can pay
off in the long run, and how large the market is.

5. Would you need to comply with government rules and regulations?

New laws or government rules and regulations can impact your product. There
are items that can be instantly sold without government approval, such as fresh
agricultural products and home-made delicacies.

Others, however, require permits, licenses and approval from the government
such as pharmaceutical, cosmetics, milk formula, processed foods, electronic
appliances and gadgets and other consumables that needed regulations for public or
consumer’s safety.

Depending on the type of your business, government policies and guidelines

may take effect and sometimes may require you to obtain special certification, permit
or license from various agencies. Foods, drugs or medicines, and cosmetic products

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are frequently scrutinized by the Food and Drug Administration (FDA) until they are
made available to the public.

6. Can the product be superior in quality, presentation or marketing when there

is a comparable product?

This entails knowing and understanding your unique selling proposition.

Unique selling proposition is the one thing that makes your product different than
any other. It enumerates all the advantages, benefits and answers customer’s needs
and wants.

It is one reason they think consumers will buy the product even though it may
seem no different from many others just like it. The product may have a lower price
or more attractive packaging, or it might taste or smell better, or last longer.

Below shows the Venn diagram of Unique Selling Proposition:

Figure 1. Venn Diagram of Unique Selling

Proposition
Meanwhile, a FAB (Features, Advantages and Benefits) Analysis is needed
when establishing a unique selling proposition.

The FAB Analysis

Before you can finally make your very own Unique Selling Proposition, you
need to do the FAB (Features, Advantages and Benefits) Analysis. This is done to
determine the quality and competitiveness of the product you want to market.

Features tell about what’s intrinsic to the product or service. It contains facts
that are useful for customers in his or her decision to buy.

Advantages should make potential customers think about what makes your
product the best option. It lists down your product’s strengths over competitors.

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 Benefits are the main reason why the feature is important to the buyer.
Oftentimes these can motivate or convince the buyer coupled by his developed
positive emotions towards the product.

Table 1: Example of a FAB Analysis

Elysia’s Handmade Pouches

(Image: https://www.facebook.com/ayis.natura/posts/2481843225241379

7. What are the potential sales, growth, profits, and time for payback?

Before starting your business, run your numbers first. This requires a careful
study through extensive research or by creating your own business plan.

A business plan is an important aspect in considering any type of venture.

The following are the factors to be taken into account:

a. from the nature of your business,

b. how much capital would you need,
c. what customers’ need will you be able to meet,
d. where to find materials; and
e. what kind of suppliers will be your partners.

Of paramount importance are the figures or numbers you would like to see
and realize during the course of your business. There must be projections of sales,
expenses, profits for a certain period of time and how long will you be able to double
your capital or retrieve your initial investment. A smart business plan can save your

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business from falling apart. As the saying goes: “If you fail to plan, you are planned
to fail”. Study the example in Table 2.

Table 2: A sample Five-Year Income Projection

Explore

Here are some enrichment activities for you to work on to

master and strengthen the basic concepts you have learned
from this lesson.

Enrichment Activity 1: CHOOSE ME!

Direction: Review the following business groups or category. Enircle one which you
think will satisfy you then explain why you choose it. If none of the given choices,
write your own business group and justify your answer in a separate sheet of paper.

Beauty, Fitness and

Food Industry
Restaurant/Catering
Services
Cleaning Services
Social Media Services
Wellness
Insurance Web Design Development
Legal Services Transport Services

Cellphone and Computer

Logistics Online Retailing/Selling
Repair
Retail Music Lessons Farming
Wedding Services/ Event
Tutorial Agri/Eco-Tourism
Planning
Automobile Services Pet Care
Other:
Photography and
Accounting Services
Videography

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 SCORING RUBRIC FOR THE ACTIVITY

Poor Fair Good

(3 points) (5 points) (10 points)
Clearly evident what Somewhat evident what Unclear what
product/service is being product/service is product/service is
provided. being provided. being provided.

Assessment 1
Directions: Read each item carefully. Choose the letter of the correct answer and
write it on a separate sheet of paper.

1. What business category will you venture if you want to put up a grape farm
for commercial and as a tourist attraction?
A. Social Media Services
B. Agri/Eco-Tourism
C. Logistics Services
D. Food Industry
2. Julie had stop working because of the pandemic. She wanted to teach online
so that she can still have income. What business category will she be in?
A. Beauty, Fitness and Wellness
B. Event Planning
C. Farming
D. Tutorial
3. LBC, J&T, Ninja Van and Air21 are businesses that fall under what category?
A. Social Media Services
B. Logistics
C. Tutorial
D. Retail
4. Manang Martha attended a seminar-workshop on how to make chicken
embutido. Upon completion, she wanted to engage right away in the
production and selling of her product. What is the category of Manang
Martha’s business?
A. Photography and Videography
B. Transport Services
C. Food Industry
D. Insurance
5. Mr. Delfin Chua just retired from being an employee of a private ompany. He
purchased an 18 – seater van and he wants it to turn into a public utility
vehicle. What business venture will Mr. Chua undertake?
A. Accounting Services
B. Transport Services
C. Event Planning
D. Food Industry

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Enrichment Activity 2:
Directions: Identifying your passion, skills, customers need to be solved and your
product’s competitive advantage.

What you need

Pen or pencil
Activity Sheet/Short bond paper

What you have to do

Read the paragraphs thoroughly then supply the needed information below. Copy
and answer it in a separate sheet.

Passions and skills I have:

As a budding entrepreneur, you must be able to identify your passions or

the things that you love to do and also the skills that you have developed
over time. Using your skills can be your asset in starting your
business. When you have the skill in baking, for example, you need not hire
one at the start of your venture. Most successful entrepreneurs usually
align their businesses with their talents; passions and interests. You also
need to think/draw in mind and write what specific customer’s problem you
will be able to solve as well as justifications of the competitiveness of your
product or service. Competitive advantage refers to factors that allow an
entrepreneur to produce goods and services better than its competitors.

My Passions:
 _____________________________________________________________________
 _____________________________________________________________________
 _____________________________________________________________________

My Skills:
 _____________________________________________________________________
 _____________________________________________________________________
 _____________________________________________________________________

Customer’s need or problem I will solve:

 _____________________________________________________________________
 _____________________________________________________________________
 _____________________________________________________________________

Evidence that my service or product is different or better (competitive

advantage):
 _____________________________________________________________________
 _____________________________________________________________________
 _____________________________________________________________________

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Assessment 2
Directions: Read each question carefully. Choose the letter of the correct answer
and write it on a separate sheet of paper.

1. What are the three things entrepreneurs usually align with their businesses?
A. Manpower and customer relations.
B. Capital, technology and product.
C. Talents, passion and interest.
D. Profits, skills, knowledge.
2. Which of the following illustrates the meaning of passion?
A. The owner closes down his business every Tuesday and Friday to gamble.
B. The owner postponed an urgent delivery because the driver is absent.
C. The owner loves baking and he himself makes the dough for their bread.
D. The owner does not care if he losses because he has a lot of money.
3. Which of the following should be taken first into account in selecting your
product?
A. Compete with existing similar product.
B. Answer the need of your customers.
C. Yield the highest profit.
D. Affordable.
4. Mr. Cool air conditioning unit energy consumption is P15.00/ hour of usage
while Mr. Bell’s is at P15.50. Mr. Cool is said to have what?
A. Complimentary advantage
B. Contemplative advantage
C. Competitive advantage
D. Composite advantage
5. Diana is a graduate of financial management and she wants to start a
carenderia business. However, she doesn’t have enough money to hire cook.
What would be the best recommendation you can extend to her?
A. Sell her motorcycle so she can afford to hire a cook.
B. Ask her mother and siblings to do the cooking.
C. Borrow money from the bank.
D. Develop her talent in cooking.

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Enrichment Activity 3: HISTORY OF PAPERCLIPS

What you need

Activity Sheet/Short bond paper
Pen/Pencil

What you have to do

1. Read and understand the article about the History of Paperclips.
2. In an activity sheet or short bond paper, copy and complete the last
paragraph by filling up the blanks with appropriate words found below.

In the 13th century, people put ribbon

through parallel incisions in the upper left-hand
corner of pages. Later, people began waxing the
ribbons, making them thicker and easier to
remove and redo. Over the next six hundred
years that was the way people clamped papers
together.

Then in 1899, Norwegian inventor Johan Vaaler invented the paperclip.

Probably, he saw the need and opportunity of creating the paperclip while
employed at a local invention office. He patented the same in 1901. Many others
followed Vaaler in an effort to make paperclips more appealing, attractive and
useful to people. The most prominent type of a paper clip was the Gem
Paperclip.
Figure 2: The Gem Paperclip as depicted in an old advertisement

Today, paperclips are widely used in ________, ________, _______ and any place where
there are ________ to do. It also comes in varied _________, ______, _________ and
sometimes ________ personalized ones depending on the ________ of the users.

offices shapes personalized

schools colors homes
paper works preferences designs

3. Explain in not less than 5 sentences why even products/inventions as

simple as a paper clip can become a best product in terms of innovation,
creativity, and need?

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Short Answer Essay Rubrics
Poor Fair Good
(3 points) (5 points) (10 points)
Only one (1) sentence Three (3) sentences that Five (5) or more
that discusses relevance discuss the relevance sentences that discuss
and success of the and success of the the relevance and
product. product. success of the product.

Great job! You have understood the lesson. Are you now ready to
summarize?

Deepen

In the previous activities, you were tasked to choose the category of business
that interests you or very passionate about and have identified which customers need
you want to address. Now, let us focus on the product that is brewing in your mind
by making Features, Advantages and Benefits (FAB) Analysis.

Activity 4. MAKING YOUR OWN FAB ANALYSIS

What you need

FAB Analysis Activity Sheet
Pen, Pencil and coloring materials

What you have to do

1. Review the FAB Analysis.
2. Copy the FAB Analysis template below on another sheet of paper
3. Write the answers that required in the following statements:
a. Think of your favorite product.
b. Write the new name of your product.
c. Draw your new product.
d. List down the features in column 1, advantages in column 2 and the
benefits in column 3. (Follow the format of the given example of FAB
Analysis in the Discover part)

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 Rubrics for Scoring the Output

Criteria Poor Fair Good

1 point 3 points 5 points
Product The illustration of the The product is The product is very
Illustration product is not clear recognizable but well illustrated and
and details were not lack in details. the details are
given emphasis. emphasized.
Features of Listed at least one (1) At least two (2) Three (3) or more
the feature of the product features are features are
product and not properly indicated and indicated and
described the properly described properly described
intrinsic quality of the the intrinsic quality the intrinsic quality
product. of the product. of the product.
Product Listed at least one (1) At least two (2) Three (3) or more
Advantages product advantage or satisfying product satisfying product
listed more than 1 advantages are advantages are
which does not refer indicated which indicated which
to any of the features clearly posed clearly posed
of the product. usefulness to usefulness to
consumers. consumers.
Benefits of Listed at least one (1) At least two (2) Three (3) or more
the product benefits or product benefits benefits are
product listed more than 1 are indicated which indicated which
which does not refer attracts consumers attracts consumers
to any of the to buy the product. to buy the product.
advantages of the
product.

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 Gauge

Directions: Read each item carefully. Choose the letter of the correct answer then
write it on a separate sheet of paper.
1. What is the most important thing to consider in the selection of a product or
service?
A. Government requirements
B. Competitor’s needs
C. Customer’s needs
D. Owner’s needs
2. Why is choosing what to sell a critical step in starting your own enterprise?
A. Necessary for future business expansion
B. It can make or break your business
C. It can create good competition
D. To innovate future products
3. Which of the following is NOT true about solving a customer’s specific
problem? Your product must ___________________.
A. Address a need or an opportunity.
B. Have a real recognizable value.
C. Benefit your customer.
D. Be the cheapest.
4. Before producing your product, what are the three things to be considered?
A. Time, resources and capability
B. Time, money and resources
C. Time, manpower, money
D. Time, talent and interest
5. Martha is selling a home made sweet longanisa. At first, people are very much
interested in buying her product until a cheaper brand flooded the market.
What should Martha do to compete?
A. Establish her own unique selling proposition.
B. Stop making and selling her product.
C. Look for another product to sell.
D. Be angry at the distributor.
6. People prefer to buy Mario’s cheesedesal over Rudy’s because of the latter’s
aroma. Mario is said to have established what?
A. Unique Features Proposition
B. Unique Product Proposition
C. Unique Benefit Proposition
D. Unique Selling Proposition

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 7. Which of the following is NOT one of the reasons in selecting a product?
A. Financial benefit to your business
B. Feasible to develop and produce
C. Negative return on investment
D. Low investment requirements
8. “The product is made up of 100% biodegradable materials”. What part of the
FAB Analysis is being described?
A. Advantages
B. Benefits
C. Features
D. Profitability
9. Angeline tagged her hand bag as “fade-resistant”. What is its category in the
FAB Analysis?
A. Advantages
B. Benefits
C. Features
D. Profitability
10. Baron is engaged in organic farming. He harvested his pechay and set to sell
it online. Which of the following can he use to emphasize the benefit of
consuming organic pechay?
A. 100% healthy (free from pesticides and synthetic fertilizers).
B. Cheaper than other pechay.
C. Fresh green leafy vegetable.
D. Imported large variety.
11. Louise is engaged in the selling of printed T-Shirt. A friend is looking for a t-
shirt that is comfortable to wear even when the weather is hot. What feature
of the product should Louise emphasize to her friend?
A. Export Quality
B. 100% Cotton
C. Colorful
D. Cheap
12. How important is a market research?
A. To get an idea of the size and potentials of your market.
B. To know where to borrow additional capital.
C. To know who are your favorite customers.
D. To know where to get raw materials.
13. What does it mean to run your numbers first before starting your business?
A. Getting a clear idea of the costs, sales, profits or return on investment.
B. How much money do you have on hand and in the bank.
C. Know how many people you are going to employ.
D. Counting your possible customers.
14. Which of the following refers to the factors that allow an entrepreneur to
produce goods and services better than the others?
A. Profitability Advantage
B. Competitive Advantage
C. Costumer’s Advantage
D. Supplier’s Advantage

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15. The success of an entrepreneur will depend on the collective efforts he employs
in his or her business but significant amount of this depends of what factor?
A. Type of goods and services he delivers.
B. Kind of customers he has.
C. Mark ups in his products.
D. Kind of suppliers he has.

Excellent! You may now proceed to the next part of

this module.

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 18
Key Answers
Jumpstart Activity
1. C
2. A
3. A
4. C
5. B
Explore
Enrichment Activity 1: The learner must encircle at least one business
category that interests him or her.
Assessment 1
1. B
2. D
3. B
4. C
5. B
Enrichment Activity 2: The learner must list at least one of the following itmes
being asked:
1. His or her passions.
2. His or her skills.
3. Customers need or problem he or she will solve.
4. Evidence that his product or service is different or better compared to
others.
Assessment 2
1. C
2. C
3. B
4. C
5. D
Enrichment Activity 3 : Learners properly organize the paragraph by placing the
correct words in each of the blank spaces.
Today, paperclips are widely used in offices, schools, homes and any
places where there are paper works to do. It also comes in various shapes,
designs, colors and sometimes personalized ones depending on the
preferences of the users.
Guage
1. C
2. B
3. A
4. A
5. A
6. D
7. C
8. C
9. A
10.A
11.B
12.A
13.A
14.B
15.A
References

Website:

What to sell: How to select the right product for your business. (2017, September
8). Home Business, Start a Successful Home-Based
Business.https://www.powerhomebiz.com/starting-a-business/choosing-a-
business/what-to-sell-how-select-the-right-product-for-your-business.htm

Starting and Growing My Business (n.d.). The Church of Jesus Christ of Latter-day
Saints.https://www.churchofjesuschrist.org/bc/content/ldsorg/topics/self-
reliance/2017/14678_sgmb_book_eng.pdf?lang=eng

Do you know who invented the paperclip, and how it happened? (n.d.). ThoughtCo.
https://www.thoughtco.com/history-of-the-paper-clip-4072863

The Journal of commercial education. v.8 1892-1893. (n.d.). HathiTrust.

https://babel.hathitrust.org/cgi/pt?id=mdp.39015011409193;seq=485

Charisse Natura Rabena. (n.d.). Facebook - Log In or Sign Up.

https://www.facebook.com/ayis.natura/posts/2481843225241379

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