Professional Documents
Culture Documents
Writer:
SHEILA MARIE ANN M. GALURA
T-II San Isidro HS, Bacolor South
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
ELSA A. LAQUINDANUM – MT- I
SHARINETTE R. CORONEL – Teacher II
What I Need to Know
This module was designed and written with you in mind. It is here to help
you master the introduction to Business Enterprise Simulation. This module is
crafted to allow you to be able to use in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The discussion
of the topics is arranged to help you follow and understand the flow of the lessons.
After going through this module, you are expected to:
Define and explain the concepts and importance of a business plan;
Apply what is learned by identifying the areas to be planned for a business
enterprise;
Prepare for the business enterprise simulation by drafting the introduction
part of a business plan.
What I Know
Before we tackle this module, let us first check your current knowledge
based from previous module. This way, the teacher can gauge how he/she can
guide you better through this module. Choose and encircle the letter of the correct
answer.
1. It is a written description of your business's future.
A. action plan C. market study
B. business plan D. qualitative research
2. The three primary parts to a business plan are the following EXCEPT:
A. business concept C. industry idea
B. financial section D. marketplace section
3. In this section of the business plan, you describe the competition and how
you'll position yourself to beat it.
A. business concept C. industry idea
B. financial section D. marketplace section
4. Business plans are useful and advantageous in the following ways EXCEPT:
A. to convey their vision to potential investors
B. to deal with suppliers
C. to demotivate key employees
D. to understand how to manage their companies better
5. As Marie writes her business plan, she writes her business’s projected
income and cash flow statement, balance sheet and other financial ratios,
such as break-even analyses in the __________.
A. business concept C. industry idea
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B. financial section D. marketplace section
6. Laura discusses the industry, business structure, her particular product or
service in the __________.
A. business concept C. industry idea
B. financial section D. marketplace section
7. Which of the statements is INCORRECT about business plans?
A. It gives entrepreneurs the ability to lay out their goals.
B. It helps the entrepreneur track their progress as their business begins
to grow.
C. It should be the last thing done when starting a new business.
D. It is important for attracting investors so they can determine if your
business in on the right path and worth putting money into.
8. The business plan is useful for the following people EXCEPT:
A. creditor C. investor
B. entrepreneur D. social media influencer
9. Through the business plan, Angelo was able to avoid committing crucial
mistakes in calculating the supplies he needs for his crafting business. In a
sense, the business helped him in __________.
A. avoiding the big mistakes
B. communicating objectives and benchmarks
C. making critical decisions
D. understanding the broader landscape
10.Because her business plan was well written and with good data, Alicia was
able to get an investor for her Beauty Salon business. Hence, her business
plan helped her in
A. ironing out the kinks
B. proving the viability of the business
C. reducing risks
D. securing financing
11. Formulating a business plan should be the _________ thing done when
starting a new business.
A. first C. third
B. second D. last
12. Rita, an entrepreneur prepares the section of her business plan which contains the
income and cash flow statement of her new business. This section is:
A. business concept C. industry idea
B. financial section D. marketplace section
13. In this section, Marcelo writes in his business plan the industry he wants to
enter, business structure, the products he will be selling.
A. business concept C. industry idea
B. financial section D. marketplace section
14. Entrepreneurship is a risky business, but that risk becomes significantly
more manageable once tested against a well-crafted business plan Hence, a
business plan can:
A. avoid the big mistakes C. prove the viability of the business
B. iron out the kinks D. reduce risks
15. When starting a small business, you don’t need a business plan.
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A. True B. False C. Maybe D. I Don’t Know
Lesson
Introduction of an
1 Enterprise Business Plan
Once you are able to choose the best business opportunity to pursue and
scan the market and environment to ensure the viability of the business idea, you
can now start planning for your business enterprise. Being able to carefully plan
for your business venture is a big step towards the success of your business.
In this module, you will be re-introduced with the business plan, which you
have learned from your previous ABM subjects. The business plan is a very
important tool in making sure that you plan and execute the best strategies for
your business.
Let us recall what you have learned from the previous module. Using a Venn
Diagram, compare and contrast the primary sources and secondary sources which
we use in generating data for our business. You can use examples for each as well.
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Notes to the Teacher
The teacher must take into considerations the essential skills needed in
the development of this competency including the background knowledge
which may reinforce learning. This module will help the learners link the gap of
learning to achieve mastery of the lesson.
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Are you ready to learn today? In
this module, you will learn how to
What is It make a business plan in preparation
for our business enterprise.
It is indeed very important to make a sensible plan before taking any actions,
whether it be on a personal or career aspect. What role does planning play when it
comes to starting a business?
Business plans can help perform a number of tasks for those who write and
read them. They're used by investment-seeking entrepreneurs to convey their vision
to potential investors. They may also be used by firms that are trying to attract key
employees, prospect for new business, deal with suppliers or simply to understand
how to manage their companies better.
So what's included in a business plan, and how do you put one together?
Simply stated, a business plan conveys your business goals, the strategies you'll
use to meet them, potential problems that may confront your business and ways to
solve them, the organizational structure of your business (including titles and
responsibilities), and finally, the amount of capital required to finance your venture
and keep it going until it breaks even.
Breaking these three major sections down even further, a business plan
consists of seven key components:
1. Executive summary
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2. Business description
3. Market strategies
4. Competitive analysis
5. Design and development plan
6. Operations and management plan
7. Financial factors
In addition to these sections, a business plan should also have a cover, title
page and table of contents.
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product-market fit analysis, every piece of a business plan can help spot
some of those potentially critical mistakes before they arise.
4. To prove the viability of the business. Many businesses are created out of
passion, and while passion can be a great motivator, it’s not a great proof
point. Planning out exactly how you’re going to turn that vision into a
successful business is perhaps the most important step between concept
and reality. Business plans can help you confirm that your grand idea
makes sound business sense.
5. To set better objectives and benchmarks. Without a business plan,
objectives often become arbitrary, without much rhyme or reason behind
them. Having a business plan can help make those benchmarks more
intentional and consequential. They can also help keep you accountable to
your long-term vision and strategy, and gain insights into how your strategy
is (or isn’t) coming together over time.
6. To communicate objectives and benchmarks. Whether you’re managing a
team of 100 or a team of two, you can’t always be there to make every
decision yourself. Think of the business plan like a substitute teacher, ready
to answer questions anytime there’s an absence. You and your staff can
always consult the business plan to understand the next steps in the event
that they can’t get an answer from you directly. Sharing your business plan
with team members also helps ensure that all members are aligned with
what you’re doing, why, and share the same understanding of long-term
objectives.
7. To provide a guide for service providers. Small businesses typically
employ contractors, freelancers, and other professionals to help them with
individual tasks like accounting, marketing, legal assistance, and as
consultants. Having a business plan in place allows you to easily share
relevant sections with those you rely on to support the organization, while
ensuring everyone is on the same page.
8. To secure financing. If you’re planning on pitching to venture capitalists,
borrowing from a bank, or are considering selling your company in the
future, you’re likely going to need a business plan. After all, anyone that’s
interested in putting money into your company is going to want to know it’s
in good hands and that it’s viable in the long run. Business plans are the
most effective ways of proving that and are typically a requirement for
anyone seeking outside financing.
9. To better understand the broader landscape. No business is an island,
and while you might have a strong handle on everything happening under
your own roof, it’s equally important to understand the market terrain as
well. Writing a business plan can go a long way in helping you better
understand your competition and the market you’re operating in more
broadly, illuminate consumer trends and preferences, potential disruptions
and other insights that aren’t always plainly visible.
10. To reduce risk. Entrepreneurship is a risky business, but that risk
becomes significantly more manageable once tested against a well-crafted
business plan. Drawing up revenue and expense projections, devising
logistics and operational plans, and understanding the market and
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competitive landscape can all help reduce the risk factor from an inherently
precarious way to make a living. Having a business plan allows you to leave
less up to chance, make better decisions, and enjoy the clearest possible
view of the future of your company.
Answering those five questions helps to clarify what your business is and
why you and your company are uniquely qualified to take the current market by
storm. That helps potential investors, partners, and employees understand the
value of working with you. Whether you’re asking the audience for time, money,
effort, or something else, they’re more likely to buy into your venture if there’s a
clear-cut path from plan to operations to profit. Answering the questions above
helps draw that path and answer the most important of all questions: What’s in it
for me?
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After studying the lesson in this
What’s More module, let us now apply the
competencies that you have gained.
Don’t worry. You got this!
Below are elements that can be seen on a business plan. Identify under
which part of a business plan it is under. Write A if it is under the Business
Concept, B if it is under the Marketplace Section, and C if it is under the financial
section.
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Independent Activity 4.3: The 7 Key Components of a Business Plan
A business plan is an essential tool to ensure that you have a clear path for
your business. Enumerate the seven key components of a business plan.
_________ 1. Upon writing his business pAlan, Marco was able to determine the
answers to some of the most essential business decisions he may
face ahead of time.
_________ 2. Marie and her employees consult their business plan to
understand the next steps for her business strategies.
_________ 3. Because she has crafted her business plan beforehand, Jenna was
able to avoid committing big mistakes when she established and
operated her business.
_________ 4. Writing a business plan helped Julius better understand his
competition and the market as well as define the consumer trends
and preferences.
_________ 5. Drafting a business plan helped Matthew confirm that his unique
idea makes sound business sense.
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Independent Activity 4.5: SWAK or WHACK
The following are statements related preparing the execution of a business
idea through the crafting of a business plan. Write SWAK if the statement is correct
and write WHACK if the statement is incorrect.
_________ 1. A business plan is a written description of your business's present
state.
_________ 2. A business plan outlines clear steps and goals to take your
business from idea to growing company.
_________ 3. You can formulate a business plan after you have established your
business.
_________ 4. Financial statements and ratios are included in the business
section of a business plan.
_________ 5. Though it may sound tedious and time-consuming, business plans
are critical to success.
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Let us now generalized our
What I Have learnings! We have encountered
different concepts in this module.
Learned
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Let us now check how we fare
Assessment in our Post-Assessment Test.
Let’s begin! Good luck!
After studying and analyzing the mini-lesson of this module, let us now
check how much knowledge you have gained. Read and analyze each items
carefully before answering.
1. It is a written description of your business's future.
A. action plan C. market study
B. business plan D. qualitative research
2. The three primary parts to a business plan are the following EXCEPT:
A. business concept C. industry idea
B. financial section D. marketplace section
3. In this section of the business plan, you describe the competition and how
you'll position yourself to beat it.
A. business concept C. industry idea
B. financial section D. marketplace section
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4. Business plans are useful and advantageous in the following ways EXCEPT:
A. to convey their vision to potential investors
B. to deal with suppliers
C. to demotivate key employees
D. to understand how to manage their companies better
5. As Marie writes her business plan, she writes her business’s projected
income and cash flow statement, balance sheet and other financial ratios,
such as break-even analyses in the __________.
A. business concept C. industry idea
B. financial section D. marketplace section
9. Through the business plan, Angelo was able to avoid committing crucial
mistakes in calculating the supplies he needs for his crafting business. In a
sense, the business helped him in __________.
A. avoiding the big mistakes
B. communicating objectives and benchmarks
C. making critical decisions
D. understanding the broader landscape
10.Because her business plan was well written and with good data, Alicia was
able to get an investor for her Beauty Salon business. Hence, her business
plan helped her in
A. ironing out the kinks
B. proving the viability of the business
C. reducing risks
D. securing financing
15
11. Formulating a business plan should be the _________ thing done when
starting a new business.
A. first C. third
B. second D. last
12. Rita, an entrepreneur prepares the section of her business plan which contains the
income and cash flow statement of her new business. This section is:
A. business concept C. industry idea
B. financial section D. marketplace section
13. In this section, Marcelo writes in his business plan the industry he wants to
enter, business structure, the products he will be selling.
A. business concept C. industry idea
B. financial section D. marketplace section
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Additional Activities
Let us continue with the crafting of the Section 1 of our business plan:
SECTION 1
EXECUTIVE SUMMARY
Introduction
___________________ (name of the store) is a start-up ___________________ (type
of business) store established to sell various items such as ___________________
(product/s or service/s offered). The store location will be situated at
___________________ (location).
The Company
___________________ (name of the store) is incorporated in the
___________________ (city/municipality) in the province of Pampanga. It is solely
owned and managed by its owner who has extensive experience in finance and
administration, as the part of sales, management and marketing will be tasked to
staff she will be training and hiring.
The storeowner got his/her inspiration to put up this merchandise store
from ___________________ (inspiration for the business). The store will be selling
___________________ (product/s or service/s offered) to the choice of the customers.
The store will be offering variety of designs to choose from by asking the storeowner
and staffs about their readily available designs or through the design of choice of
the customers.
The storeowner will be buying the merchandises from the
___________________ (target supplier) for low prices. Some of the products will be
readily available for the customers to buy from if no alterations will be requested by
the customers.
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The Market
The ____________________ industry in the locality has recently experienced
rapid growth. ___________________ (name of the store) wants to establish a large
regular customer base, and will therefore concentrate its business and marketing
on local residents, which will be the dominant target market that establish a
healthy and consistent revenue.
Financial Considerations
___________________ (name of the store) expects to raise ₱ ______________
(capital) of its own capital. This provides the bulk of the current financing required.
______________ (capital) anticipates sales of about ₱______________ (projected
sales) in the 1st year, ₱______________ (projected sales) in the 2nd year, and
₱______________ (projected sales) in the 3rd year of the plan. The store should break
even by the 6th month of its operation as it steadily increases its sales. Profits for
this time period are expected to be approximately ₱______________ (projected profit)
in year 1, ₱______________ (projected profit) by year 2, and ₱______________ (projected
profit) by the 3rd year. The company does not anticipate any cash flow problems.
Mission:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Vision:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Core Values:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
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Answer Key
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References
Abbamonte, K. (2018). How to write a business plan. Wave Blog. Retrieved from:
https://www.waveapps.com/blog/entrepreneurship/how-to-write-a-
business-plan
Entrepreneur Asia Pacific. (n.d). An introduction to business plans. Retrieved from:
https://www.entrepreneur.com/article/38290
Entrepreneur Asia Pacific. (n.d.) Business plan. Retrieved from:
https://www.entrepreneur.com/encyclopedia/business-plan
Garalde-Orjalo, V. & Pefianco, E. C. (2017). Business Enterprise Simulation:
Business Incubation and ABM Integration (1st edition.). The Phoenix
Publishing House Inc.
Laquindanum, E.A. (2020). Enterprise Business Plan: Korean-POP Collectibles
Shop
Lindzon, J. (2019). The importance of a business plan. Wave Blog. Retrieved from:
https://www.waveapps.com/blog/entrepreneurship/importance-of-a-
business-plan
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Development Team of the Module
Writer: SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Illustrator: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
Layout Artist: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Language Reviewer:
Management Team
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