PLANNING, ORGANIZING AND MANAGING THE

ENTERPRISE
Introductory Message
For the facilitator:
(This gives an instruction to the facilitator to orient the learners and support the
parents, elder sibling etc. of the learners on how to use the module. Furthermore,
this also instructs the facilitator to remind the learners to use separate sheets in
answering the pre-test, self-check exercises, and post-test.)
For the learner:
(This communicates directly to the learners and hence, must be interactive. This
contains instructions on how to use the module. The structure and the procedure of
working through the module are explained here. This also gives an overview of the
content of the module. If standard symbols are used to represent some parts of the
module such as the objectives, input, practice task and the like they are defined and
explained in this portion.)
This module has been written in simple, clear and concise language which college
student can easily understand. As a writer, I have always impressed upon my
student readers the importance of social responsibility. To me, the acquisition of
knowledge and skills – no matter how excellent they are – has no social value if
these are used for personal interests only.
The ultimate benefits of knowledge and skills must seep down to the level of the
masses. This is the true essence of education, particularly in society where there is a
widening gap between the rich and the poor.
This module is basic or introductory to entrepreneurship has been written for
those who are planning to put up their own small business. You will find this book
helpful and an effective guide as well as a source of inspiration. It contains much
information business, and stories of rags-to-riches entrepreneurs, among others
which will be very useful not only as theoretical education, but also for practical
purposes.
This module was designed and written with you in mind. It is here to help you
master the Economic Development and Entrepreneurship. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to
follow the standard sequence of the course. But the order in which you read them
can be changed to correspond with the reference you are now using.
 TABLE OF CONTENTS

I. TOPIC TITLE: DEVELOPING A BUSINESS PLAN

II. INTRODUCTION:
Planning in plain and simple language is thinking ahead. In
business, it is thinking ahead of objectives, strategic, financing
production, marketing, profit, and growth possibilities. However,
business planning should be realistic. this means planning is based
on available resource, and responsive to the needs of the
community. Otherwise, planning is no different from dreaming.
Affective:

1. Listen attentively to the class discussions.

2. Participate actively in class discussions.
3. Appreciate individual’s opinion and definition of the different term.

Psychomotor:

1. Respond to class discussion actively.

2. Display full understanding to class activities.

III. PREPARATION OF THE LESSON

Unlocking of Difficulties
1. Business plan
2. Budgeting
3. Strategic plan
4. Effective planning
5. Principle

IV. REVIEW OF THE PAST LESSON

Explain the marketing strategies of Sears, Roebuck.

V. LESSSON PROPER
 Business Planning explained

Business planning involves the attainment of goals, and the ways to accomplish
goals. A time frame is needed in attaining the goals. Starting the business is not the
end business planning. Ultimately, it is the consumer satisfaction that requires
planning. This should be properly planned because consumer satisfaction means
business stability and growth. In financial language, consumer satisfaction is a profit.
Thus, business planning is a continuous process until consumer satisfaction is
maximized and sustained.

Principles of Planning

Planning must be realistic. It must be based on available resource- human,

financial, and physical resources. If these are not enough, then it would be
impossible to implement.
Planning must be based on felt needs .The objectives of the entrepreneur should fit the
needs of the people in a community.
Planning must be flexible. Resources, needs and economic conditions change. Planning
should be adjusted to such changes to be effective and relevant
Planning must start with simple projects. This require a simple technology and simple
management it also needs and few resource in terms of funds, material and
equipment.

Stages of Business Planning

Unplanned stage. At the start of the business, the owner-manager is busy looking
for funds, customer, material and equipment.
Budgeting-System stage. Eventually, the owner-manager realizes the need to
develop and use a budgeting system.
Annual planning stage. The owner-manager drafts plan. He can use either the
top-down planning or bottom-planning.
Strategic planning stage. As the business becomes bigger, a long-range
planning is needed. This is a three or five years plan.

ACTIVITY 1: Describe the principles and stages of business planning.

 Principles of
Business Planning
 Stages of
Business Planning

Criteria of
Effective
Planning
1. the plan should state clearly its objective. Such clear statement is necessary so
that those who will be involve in the execution of the plan will understand, believe,
accept, and support it.
2. the plan should provide measure for a satisfaction accomplishment of the
objectives.
3. The plan should indicate policies to guide people.
4. The plan should indicate what department or unit will be involve in
accomplishing for performing required work.
5. The plan should indicate the time which should be allowed for each activity
6. The plan should specify the required resource.
7. The plan should designated the officer who will held accountable for
accomplishment of the objectives

Components of Business Planning

1. SWOT. The chances of a product or service can be evaluated through the SWOT
analysis. This is explained in chapter 6.
 2. Objectives. These should be specify and realistic. Such objectives can be daily,
weekly, monthly, and yearly.
3. Strategies. These are ways of the accomplishing the objectives. Such ways are
stated the financial , production, marketing, and organizational plans of enterprise.
4. Time Frame. In business, time is gold. For this reason, an entrepreneur must be
efficient in time management. Every activity has its own time schedule, activities
which are completed on time save money.

ACTIVITY 2: Identify the criteria and components of effective business planning.

Characteristics of Sound Business Plan
1. Objective
2. Clear
3. Logical and simple
4. Flexible
5. Stable
6. Complete and integrated

Obtaining the Facts for the Business Plan

Facts about the prospective business can be obtained from the research survey,
governments agencies, accounts, bankers and lawyers.
1. what is unique about my product/service?
2. Who are my competitors?
3. How will my customers buy?
4. What is my share in the market?
5. What is market potential?
6. Who are my customers and where they located?
7. Where will I put up my business?
8. How big should be my plant or place of my business be?
9. What equipment will I need and what size?
10. How will I create customers?
11. What personnel do I need?
12. How will I organize my enterprise?
13. What kind of record do I need?
14. How much capital do I need?
15. How profitable will the business be?
16. How financially healthy will I be?
17. What is my break-even point

Outline of a Business Plan

 Cover Sheet
 Business Goal’s
 Strategies
 Tables of Contents
Selection One: The Business
A. Description of Business B. Product/services
C. Market D. Location of Business
E. Competition F. Management
G. Personnel H. Application
I. Summary
Section Two: Financial Data
A. Source and application of funding
B. Capital Equipment List
C. Balance Sheet
D. Break-eve analysis
E. Income Projection (Profit and Loss statement)
1. five year summary
2. Detail by month for first year
 3. Detail by quarter for second, third, fourth , and fifth year
4. note explanation
F. Cash Flow Projection
1. Detail by month for first year
2. Detail quarter for next years
3. Note explanation
G. Deviation Analysis

Section Three: Supporting Documents

Personal resumes, personal balance sheets, cost of living budget, credit reports,
letters, job description, letters of intent.

ACTIVITY 3: Discuss the characteristics, facts and outline of business plan.

Steps in Business Planning

1.Evaluate your personal resource and interest, and the resource of the
community.
 Do you have funds
 Do you have skills or management experience
 Does the government provide financial and technical assistance
 Are raw materials available?
 Are you interested in such business
 Do you have good human relation
2. Analyze your market
 Is there a good demand for your product or service?
 How many competitors are in the market?
 What is your estimated share market?
 Who are your customers
 Are they interested in the existing products or service
3. Choose a proper business location
  It is near your prospective customers?
 Are there facilities like electricity, water, transportation, and
communication?
 Is the place clean, decent and peaceful?
 Do you have good alternatives in case the best location is
expensive?
 Is it accessible to raw materials and other supplies?
4. Prepare a financial plan.
 What are your objectives?
 How much money do you need?
 How will you spend the money?
 What are your expenses?
 How soon can you move recover your money or investment?
5. Prepare a production plan.
- Is it more economical to rent or buy a production equipment?
- Can you ensure or improve your product design or quality
- Can your production facilities meet demand?
- Do you have inventory control?
- Do you have proper schedule of production?
6. Prepare an organizational plan.
- What type of business organization is most suitable?
- Do you know the corresponding laws, policies and requirements of your business
organization?
- Are you aware of the advantages and the disadvantages of each type of business
organization?
- Who will be the officers and employees of your enterprise?
- What are their duties and responsibilities?
7. Prepare a management plan.
- What are your goals and objectives?
- What are your strategies?
- Do you have business policies for your customers?
- Do you have human resources development for your employees.
- What is your program of social responsibility?

ACTIVITY 4: Present the steps in business planning.

The importance of Business Planning

 Putting up a business is not a game of chance. It is not a win or loss activity. However, there
are always risks in business. Some of these can be avoided. Others cannot be avoided like
natural calamities, but their effects can be minimized Planning can eliminate business risks
because it carefully studies the competence, interest and resources of entrepreneur against
the needs of consumers, together with the presence of complete. Through marketing
research or feasibility study, the entrepreneur can be determine whether it is profitable to
set up a certain kind of business or not Planning can minimize costs of production. The
resources of production such as money, materials, machines and manpower are properly
used and scheduled according to plan. The entrepreneur monitors and controls every aspect
of the business operations to prevent unnecessary wastes. This results to economy and
efficiency. Without planning production inputs are wasted more often than not. Planning can
detect the weaknesses of the business operations. In planning goals and objectives are
formulated. Alternative strategies are designed on how to attain the objectives And goals.
The various resources or inputs are also indicated to support the strategies. If the goals and
objectives have not been accomplished according to time frame, there is something wrong
with the operation. The entrepreneur can then re-evaluate his planning .

ACTIVITY 5: Identify the importance of business planning

VI. EVALUATION: Answer the following questions:

1. What is the possible effects if there is no business planning?
2. What are the principles of planning? Explain one
3. Differentiate top-down planning from bottom-up planning. Which is better?
4. Explain one criteria of effective planning.
5. Give example of a business objective and its strategy to attain such
objective.
6. Explain the role of information in business planning.
VII. SUMMARY
1. Planning is thinking ahead. It decides what to do; how to do it; and what to
expect in the future.
2. The principles of planning are: it must be realistic, based on felt needs, it
must be flexible; and it must be simple project at the start.
3. Stages of business planning are: the unplanned stage, budgeting system
stage, annual planning stage, and strategic planning stage.
4. Planning to be effective should have the following features: clear
objectives, measurability, policy guidelines, time frame, required resources
and costs, responsible personnel, and implementing office.
5. Components of business planning are SWOT, objectives, strategies and
time frame.
6. A sound business plan must be objective, clear, logical and simple, flexible,
stable and complete and integrated.

VIII. REFERENCES
ENTRPRENEURSHIP BY FAJARDO pages 105-113