This module is designed and written with you in mind.

It is based on the Most Essential

Learning Competencies (MELCs). It is here to help you master this applied subject on
Entrepreneurship.
It contains information about developing business plans. It includes characteristics,
purposes, and elements of a business plan.

Content Standard: The learner demonstrates understanding of concepts, underlying principles

and processes of developing a business plan.
Performance Standards: The learner independently or with his/her classmates presents an
acceptable detailed business plan.

Objectives:
At the end of this module, the learner should be able to:
1. Define business plan;
2. Discuss the characteristics, purpose and elements of a business plan;
3. Develop a business plan for a proposed business; and
4. Value the importance of developing a business plan.

Multiple Choice: Directions: Write the letter of your answer on the space provided.

____1. A_______ is a written document that describes all the necessary steps for
opening or operating a successful business venture.
A. Business Plan B. Development Plan C. Financial Plan D. Production Plan
_____2. The font to use for heading should be:
A. arial, gothic, times new roman C. century gothic, times new roman, calibri
B. Tahoma, verdana, arial D. bodoni, aharoni, agency fb
_____3. Which of the following is the best description for the executive summary?
A. The executive summary may be omitted from the business plan.
B. The executive summary is the synthesis of the entire business plan.
C. The executive summary should detail the different parts of the business.
D. The executive summary may be written last, but it is placed in the first part of the
business plan.
_____4. The question “where do you want your business to go?” in business planning is being
defined by what component of a business plan?
A. goal and objectives C. supply and demand
B. vision and mission D. target market and target audience
_____5. A good business plan must possess any of the following criteria. Which one is the BEST
to consider when writing a plan?
A. communicable and flexible C. desirable and imaginable
B. concise and precise D. focused and feasible
_____6. Maliah started her computer shop two years ago and she monitors the good flow of
her business. If Maliah will expand her shop, what document must she prepare to
ensure the growth and sustainability of her business?
A. business plan C. project feasibility study
B. SWOT analysis D. business opportunity analysis
_____7. What is the reason for stating the form of ownership in the business plan?
A. It will tell who owns the business.
B. It will identify the company’s source of funding.
C. It will determine the range of capitalization.
D. It will determine the requirements needed to start the business.
_____8. This section of the business plan helps you determine your monetary needs.
A. Financial Plan B. Operations C. Production Plan D. Organizational Plan
_____9. This section of the business plan shows the structure of the people who will do the
business.
A. Financial Plan C. Production Plan
B. Organizational Plan D. The Product/Service
_____10. This section of the business plan describes the goods or services you will
offer, the market and marketing strategy, the industry, store location and layout.
A. Financial Plan C. Production Plan
B. Organizational Plan D. The Product/Service

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QUARTER 1- WEEK 3 AND 4 Page 2
ACTIVITY 2.1: Write your business idea on the following sources available in your area. Use
your notebook to answer.
Source Business Idea/s

1. A business needed in your town:

2. A business using your own personal skills and

talents:
3. A home-based business:

4. A business that could be started with

Php 1,000.00:

5. A service business:

6. A partnership between two students in a class:

7. A business that you can imagine during the rainy

season.
8. A business that is related to your hobbies and
interest.
9. A business that has something to do with fashion
and trends.
10. The 21st century business ideas.

Reference: Alcantara-De Guzman, PhD (2016). The Young Entrepreneur. 113.Quezon City:
Golden Cronica Publishing Inc

Have you tried going into a place you did not know without looking at its location or a
map? Or going into an occasion without thinking what to wear? Whatever it is that we want to
do, it is our instinct to carefully plan or think of it before taking action. In this lesson you will
learn how to plan for your proposed business.

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QUARTER 1- WEEK 3 AND 4 Page 3
 Lesson
Developing a Business Plan
1 Written by Maylyn C. Bejerano

Definitions of a Business Plan?

● It is a written document describing in detail how a business — usually a new one — is

going to achieve its objectives. The business plan sets out a written plan from a
marketing, financial and operational point of view. (Kenton, 2019)
● A business plan is a written outline of the future of your company. It's just a guide
that details what you're trying to do and how you're going to do it. It is also a road
map that offers guidance so that a company can prepare its future and help avoid
road bumps.

Characteristics of a Business Plan

There is a major difference between writing a business plan and writing a story.
Remember that while talking to someone on the phone, eating or going through emails, people
might read your business plan. So, here are some tips to make sure you can create an effective
business plan that will get across people. This is presented in the SMART acronym.

Simple/Specific ● Use short sentences instead of long complicated

ones.
● Use simple and straightforward language.
● Avoid using shortcuts, jargons, and acronyms.
● Use bullet points for lists.

Measurable ● Describe the goal clearly.

● Contains concrete and measurable objectives.
● Include specific actions and activities.

Achievable/Attainable ● Should list out attainable goals

● Should specify the goals to achieve
● Suggested number of pages is from 20 to 30pages
of text and another 10 pages of appendices.

Realistic/Relevant ● Summarize other data by using simple business

charts or summary tables such as bar charts, two
dimensional bars, pie charts and Gantt charts.
● Contains the company's vision and mission.

Time-Bound ● Follow the time bound plan

● Achieve goals within the time bound.

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QUARTER 1- WEEK 3 AND 4 Page 4
Purpose of a Business Plan

A business plan is an essential roadmap for business success. It describes the direction
the company is taking, what its goals are, where it wants to be, and how it is going to get there
(Dillon and Schmiester, 2020). Apart from these, the value of creating a business plan before
continuing with the actual implementation is set out below.

1. It defines the business.

2. It sets the goals.
3. It shows investors the viability of the business.
4. It is used to attract business partners.
5. It shows the organizational structure.
6. It prepares the business for uncertainties.
7. It outlines all the costs and the downfalls of each decision a company makes.
8. It presents the overview of the industry of which the business will be a part, and how it
will distinguish itself from its potential competitors.

Elements of a Business Plan

1. The Executive Summary

While appearing first in the business plan, the executive summary is a section
that is usually written last as it is a summary of the entire business plan. It offers an
overview of your brand, including your mission statement, and specifics of what you are
offering. It is critical that your executive summary is excellent, particularly if you're
looking for funding.
2. The Business Description
Provide information about the company you are starting up, like what kind of
problem your product or service would solve and who the most likely customer is. This
will also provide a summary of the industry that your company will be part of,
including trends, key players in the industry and projected sales to the industry.

3. Market Analysis
Business research is a vital aspect of the marketing strategy because it helps
you find the best customers or clients. Research the primary target market for your
product or service in the market research, including geographical area, demographics,
the needs of your target audience and how these needs are being met.

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QUARTER 1- WEEK 3 AND 4 Page 5
 4. Competitive Analysis
In the competitive analysis section, you will learn how successful your direct
and indirect competitors are in the marketplace, with an assessment of their
competitive advantage and how you will set yourself apart from them. It also provides
an overview of how you can resolve any obstacles to entry into your chosen market.

5. Sales and Marketing Plan

The sales and marketing section offers a comprehensive description of your
promotional strategy, pricing plan, planned advertisement and promotion activities, and
the advantages of your product or service. This is where you outline your business's
unique selling proposition, describe how you are going to get your goods and/or
services to market, and how you are going to persuade people to buy them.
6. Ownership and Management Plan
Each section details the legal framework and management resources of your
company, including your internal management team, external management resources
and human resources needs. Include the expertise or special skills that each person in
your management team brings to your company.

7. Operating Plan

The operating plan offers information about how the company is going to
operate. It provides a summary of the physical location of your company, the facilities
and equipment, the types of workers required, the inventory specifications, the
suppliers and any other relevant operational information, such as a summary of the
manufacturing process.

8. Financial Plan

A summary of your funding criteria, your detailed financial statements and an

overview of your financial statements must be summarized in a financial section. As part
of the tax report is where you show the three key financial statements in every
company; the balance sheet, the income statement and the cash flow statement; or, in
the case of a new tax, the cash flow forecast.

9. Appendices and Exhibits

At the end of your business plan, provide any additional details that will help
to build the legitimacy of your business concept, such as feasibility reports, photos of
your company, licenses, and intellectual property rights such as patents, credit records,
resumes, marketing materials and/or contracts or other legal agreements related to
your business plan.

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QUARTER 1- WEEK 3 AND 4 Page 6
 Types of Business Plans

Reference: Writing a business plan by Afzaal Ali, Aug. 8, 2013

https://www.slideshare.net/afzaalali14/chapter-4-entrepreneurship

Activity 2.2. Write an executive summary for your proposed business. Accomplish the
worksheet below to outline the executive summary of your business plan. You may use a
separate answer sheet or encode your answer in a document file.

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QUARTER 1- WEEK 3 AND 4 Page 7
Activity 2.3. Accomplish the worksheet below. Write a business description for your proposed
business. You may use a separate answer sheet or encode your answer in a document file.

Activity 2.4. Write your own preferred business plan using the work sheet format below

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QUARTER 1- WEEK 3 AND 4 Page 8
 ● A business plan is a written document describing how businesses—both new and
established—plan to achieve their goals.
● Businesses may come up with a lengthier traditional business plan or a shorter lean
startup business plan.
● Good business plans should include an executive summary, products and services,
financial planning, marketing strategy and analysis, financial planning, and a budget.

Multiple Choice. Directions: Read each item carefully. Write the letter of your answer on the
space provided.
____1. A_______ is a written document that describes all the necessary steps for
opening or operating a successful business venture.
A. Business Plan B. Development Plan C. Financial Plan D.Production Plan
_____2. The font to use for heading should be:

A. arial, gothic, times new roman C. century gothic, times new roman, calibri
B. Tahoma, verdana, arial D. bodoni, aharoni, agency fb
_____3. Which of the following is the best description for the executive summary?
A. The executive summary may be omitted from the business plan.
B. The executive summary is the synthesis of the entire business plan.
C. The executive summary should detail the different parts of the business.
D. The executive summary may be written last, but it is placed in the first part of the
business plan.
_____4. The question “where do you want your business to go?” in business planning is being
defined by what component of a business plan?
A. goal and objectives C. supply and demand
B. vision and mission D. target market and target audience
_____5. A good business plan must possess any of the following criteria. Which one is the BEST
to consider when writing a plan?

A. communicable and flexible C. desirable and imaginable

B. concise and precise D. focused and feasible

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QUARTER 1- WEEK 3 AND 4 Page 9
_____6. Maliah started her computer shop two years ago and she monitors the good flow of
her business. If Maliah will expand her shop, what document must she prepare to
ensure the growth and sustainability of her business?
A. business plan C. project feasibility study

B. SWOT analysis D. business opportunity analysis

_____7. What is the reason for stating the form of ownership in the business plan?
A. It will tell who owns the business.
B. It will identify the company’s source of funding.
C. It will determine the range of capitalization.
D. It will determine the requirements needed to start the business.
_____8. This section of the business plan helps you determine your monetary needs.
A. Financial Plan B. Operations C. Production Plan D. Organizational Plan
_____9. This section of the business plan shows the structure of the people who will do the
business.
A. Financial Plan C. Production Plan
B. Organizational Plan D. The Product/Service
_____10. This section of the business plan describes the goods or services you will
offer, the market and marketing strategy, the industry, store location and layout.
A. Financial Plan C. Production Plan
B. Organizational Plan D. The Product/Service

I have learned that

_________________________________________________________________
_______________________________________________________________

I have realized that

_________________________________________________________________
_______________________________________________________________

I will apply
_________________________________________________________________
_______________________________________________________________.

Maylyn C. Bejerano Lorna Camu

Author Illustrator
Marites Cortez Remedios V. Montebon
Evaluator Team Leader

SHS APPLIED SUBJECT- ENTREPRENEURSHIP

QUARTER 1- WEEK 3 AND 4 Page 10