Professional Documents
Culture Documents
Quarter 1– Module 3:
Developing a Business Plan
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What I Need to Know
This module is designed and written to help you acknowledge the significance
of writing and implementing a business plan for the success of a business or
enterprise.
1. select the best product or service that will meet the market need.
(TLE_ICTAN11/12PC-la-1)
What I Know
Matching Type. Match column A with column B. Write only the letter that
corresponds to your answer.
COLUMN A COLUMN B
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6. This is the financial statement that reports a
company’s assets, liabilities, and owner’s
equity within a given period.
7. This financial statement shows the flow of
cash (inflow and outflow).
8. This financial statement shows you how
profitable your business within a given period.
9. These are the materials cost needed in
production of goods like fabric and machine.
10. The term used when we deduct expense from
gross profit.
Lesson
Developing a Business Plan
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Entrepreneurs who decided to enter any business ventures must have
business plan on their hand to guide them throughout the process. Business plan
is written prior to setting up an enterprise.
Entrepreneurs must plan their business carefully because the success of the
business depends on it. Different business plans are prepared for different motives.
Business plans do not serve only one master. First, it serves the entrepreneur who
must set the guiding system of the business. Second, it serves the investors and
conscious financiers. Lastly, it serves the managers and staff in the organization so
that they will be knowledgeable about the process.
What’s In
Let us see if you still remember our last lesson. Write your answers in your
notebook. Write only the letter that corresponds to your answer.
a. 3 b. 4 c. 5 d. 6
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3. Which part of the business plan indicates the mission and vision statements of
the business?
a. Executive Summary c. Management and Organization
b. Financial Plan d. Product/Service Plan
4. Which part of the business plan contains the start-up cost requirements needed
in the business?
a. Executive Summary c. Market Plan
b. Financial Plan d. Management and Organization
5. Which part of the business plan includes the demand and supply vis-à-vis
competitors?
a. Executive Summary c. Management and Organization
b. Market Plan d. Product/Service Plan
6. Which part of the business plan includes the proposed business and business
model?
a. Executive Summary c. Management and Organization
b. Market Plan d. Product/Service Plan
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What’s New
Situational Analysis:
While the students are busy, the teacher got a chance to observe the two
groups. The teacher noticed that the first group was undisciplined and disorganized.
Some were chatting with their classmates and some were just using their mobile
phones. The leader was very upset. The second group was very attentive and
cooperative. The leader planned the activity well while the members are listening
attentively.
Which group do you think will perform better? Why do you say so? Write your
answer in your notebook.
What is It
BUSINESS PLAN
I. Executive Summary
V. Financial Plan
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In this module, you will make your own business plan. First, think of a
business you wanted to have and/or can sustain the needs of your community. After
you decide the kind of business you want to establish, you are now ready to write a
business plan.
I. EXECUTIVE SUMMARY
Based on the discussion from the last module; this is the last part to be
accomplished because it will summarize all the information and data gathered from
Parts II-V of the business plan.
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IV. MARKET PLAN
V. FINANCIAL PLAN
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BUSINESS PLAN
VIA’S FASHIONABLE
FACE MASK
I. EXECUTIVE SUMMARY
Via’s Fashionable Face Mask will offer unique, fashionable, and has good
quality face masks that will accommodate the needs of the people nowadays due to
COVID-19 in Bataan. Historical data show that there is an increasing demand for
face masks among the towns of Bataan. However, the existing 5 big competitors are
not able to meet such demand resulting to a big gap. This means that there is a big
unmet demand of the market in face masks. Our goal is to fill something to meet
the desired demand. One of our primary strategies is to offer customers variety of
options for choosing their own face masks. Fashionable face masks will be offered
in various colors and designs to give customers options. Customized face masks will
also be offered to some institutions like schools and offices. Our business will be
initially operating as a home-based enterprise and will use social media platforms
(like Facebook or Instagram) to advertise the colors and ready-made designs of the
face masks. Customers may have the options to pick up the products or have it
delivered at their convenience. Via’s Fashionable Face Mask has several unique and
competitive designs that will be used to its advantage to penetrate market.
Initial capitalization for the business is Php 27,000 good for one-month
expense. Expected revenue for 1 year is Php 290,280 while total cost for goods sold
amounted to Php 158,580, while the total cost of goods sold amounted to Php
158,580.
Notes:
*Capitalization is based on the start-up summary total qty. per month table.
*Revenue is based on the total peso in year 1 in sales projection table.
*The data for cost of goods sold can be seen at projected income statement table.
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II. MANAGEMENT AND ORGANIZATION
B. Logo:
C. Address: #5380 Zamora St. Brgy. Poblacion, Mariveles, Bataan
D. Vision Statement: Via’s Fashionable Face Mask will be the leading provider
of unique, fashionable, and high-quality face masks that will accommodate
the needs of the people in Bataan.
E. Mission Statement: Via’s Fashionable Face Mask is a socially responsible
enterprise providing high-quality, unique, and reasonably priced fashionable
face masks which caters health needs of the people in Bataan.
F. Key Personnel: Owner/Manager
G. Work Force and Support Personnel: Sewer, helper
H. Organizational Chart:
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K. Compensation and Incentives:
Employees’ Salaries:
Advisory Council – P500 (monthly consultation)
Via’s Fashionable Face Mask will offer the residents of Bataan, a unique, good
quality and variety of options for choosing their own face masks. There are different
colors to choose from. We can cater schools if ever they decide to have color coding
per grade level. For offices, we can provide customized face mask like printing the
name of the company or any designs they want.
Via’s Fashionable Face Mask shows its unique features. The first is the wide
variety of colors that customers can choose from. They can freely select the color
they want. The second is the printed designs of face mask. This is best for some
teenagers who are fashionable.
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D. Production Process and Controls that will be used to manufacture the product
1. Create a pattern.
a. Draw patterns in different size (Small, Medium, Large and Extra Large).
b. Cut the pattern.
2. Transfer the pattern to the fabric, and then cut it.
3. Sew the cut cloth.
4. Trim the excess thread.
5. Pack the face mask in a clean plastic bag.
6. Add label. Print in small square paper the name and logo of the business.
Indicate also the sizes.
Neoprene mask is best used as a material for washable face mask. Neoprene
(also polychloroprene) is a family of synthetic rubbers that are produced by
polymerization of chloroprene (Wikipedia). This fabric is water resistant that can
protect us from the virus.
E. Distribution Logistics
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B. Marketing and Sales Projection
Marketing Strategy
A competitive and encouraging campaign will aim to increase the visibility for
Via’s Fashionable Face Mask. This will focus on the customer’s desire to choose
colorful and printed washable face mask. Via’s Fashionable Face Mask will use
different channels to communicate this message.
a. Social Media – During this time of crisis, posting in social media is the best
way to communicate with other people. Via’s Fashionable Face Mask will be active in
social media like Facebook and Instagram to showcase and advertise the product.
This will be used in every transaction.
b. Online Resellers - Via’s Fashionable Face Mask will try to reach out people in
social media who are reselling products. As we have seen, it has a big potential to
widen the market. A linkage will be established so that they become aware of the
washable face mask.
C. Sales Strategy
Customers are always after their convenience. Via’s Fashionable Face Mask
sales strategy will assure that ordering and buying face mask is very easy, exiting,
and a great experience. In order to do this, the enterprise will create a website and
a Facebook page where customers can use to order and buy face mask at their
convenience. New designs will be uploaded from time to time to notify customers.
Electronic payment like bank-to-bank transfer and other remittance centers to
promote cashless transaction.
With these sales strategies, the company develops the customer’s excitement
to order and convenience to pay at their own pace.
Retail Price:
Size of Face Masks Price (Peso)
Small (fits to kids 3-7 yrs. old) 35
Medium (fits to teens 8-14 yrs. old) 40
Large (15 yrs. old above) 45
Extra Large (oversized) 50
Table 2.1 (Pricing Scheme-Retail Price)
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Reseller Price:
Size of Face Masks Price (Peso)
Small (fits to kids 3-7 yrs. old) 31
Medium (fits to teens 8-14 yrs. old) 34
Large (15 yrs. old above) 37
Extra Large (oversized) 40
Table 2.2 (Pricing Scheme-Reseller Price)
F. Sales Projections
The demand for washable face masks in Bataan has shown steady increase
over the last 5 years. Because of the current crisis, face masks are very in demand
for all ages. To increase market penetration, Via’s Fashionable Face Mask will offer
variety of colors and printed designs of face masks. At the same time, competition
and encouraging marketing campaign will be done to increase the visibility of Via’s
Fashionable Face Mask using different types of social media and scouting potential
online resellers to widen the market. The enterprise offers price differential based on
the size and designs with the price ranging from Php 31-40.
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V. FINANCIAL PLAN
A. Start-up Summary
685pcs. - Total
Expenses Cost/pc. Year 1
Qty./Month
Neoprene Fabric 85 5,865 70,380
(10 masks per yard)
Equipment 7,500 7,500 7,500
(Sewing Machine)
Utilities 2,000 2,000 24,000
(water, electricity
and Internet)
Labor 7,350 7,350 88,200
Miscellaneous 1,285 1,285 15,420
Permit and License 3,000 3,000 3,000
Total 27,000 208,500
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B. Financial Projections
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Table 3.3 (Financial Projections – Cash Flow)
Note:
*Cash flow – this financial statement shows the flow of cash (inflow and outflow).
*Beginning balance for the year 1 is based on start-up summary total qty, per month. For the years 2-5, the
ending cash balance of the preceding year will be the beginning balance for the current year.
*Cash sales are based on the sales projection table from the total sales in peso per year.
*Total cash inflows = Beginning year + cash sales plus + cash inflows
*Total Cash outflow = Expenses plus Payable and withdrawal. *In that projection, 10% increase per year
is used to get the amount for years 2-5 (except for permit and licenses).
*Owner’s Withdrawal is projected amount only.
*Ending Cash Balance = Total Cash Inflows - Total Cash Outflows.
E.g. in Year 1
=317,280 – 237,070
=80,210
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Table 3.4 (Sales Projections – Balanced Sheet)
Note:
*Balanced Sheet – the financial statement that reports a company’s assets, liabilities, and owner’s equity
within a given period.
*Always remember that in Balanced Sheet the Total Assets must be equal to Total Liabilities and Equity.
*Assets and Liabilities consist of current and non-current.
*Current assets are cash and other assets converted to cash within a year while non-current assets are cash
and other assets that will not be realized or converted within a year.
*Current liabilities are liabilities or short-term financial obligations that are due within a year while non-
current liabilities are long-term financial obligations that the due is more than a year.
*Cash at hand is based on Net Income.
*Income tax payable= 32% (tax rate) of Income before interest and taxes.
*Capital is based on the cost per month in start-up summary table.
*Drawings – total drawings for the period.
*Net Capital = Capital Beginning + Net Profit – Drawings
*Total Liabilities and Equity = Total Liabilities + Net Capital
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What’s More
Identify the word or group of words that is being described in the following
sentences. Choose your answer from the box below. Write your answers in your
notebook.
1. It is the part of the business plan where you can find the process on how to
make a product.
2. It is the part of the business plan where you can find the permit and license to
be accomplished by the owner.
3. In this table, you can analyze that there is unmet demand and needs to be
sustained.
4. In this table, you will see the initial capital to start a business.
5. In this table, you will find the price of the products.
Pricing Scheme
Product Plan
Market Plan
Market analysis
Start-up Summary
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What I Can Do
If you will be given a chance to start your own business, what would it be? Why?
Make a simple business plan of your chosen business. Write your answer on
a clean sheet of yellow paper. The scoring rubric for this activity is given below.
Assessment
A. True or False. Write TRUE if the statement is correct and FALSE if otherwise.
Write your answers in your notebook.
1. If you subtract gross profit from expenses, you can get the net income.
2. The executive summary is the last part to be accomplished.
3. In product plan, you can find the product features.
4. In management and organization, you can check the employees’ salaries.
5. The cash flow reports the company’s assets, liabilities, and owner’s equity.
6. In financial plan, you can check the projected income statement.
7. Cost of goods sold is the cost needed in production of goods like materials and
direct labor.
8. Income statement shows you how profitable your business will be within a given
period.
9. Balanced sheet shows the flow of cash (inflow and outflow).
10. In market plan, you can find the sales projection.
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Additional Activities
Some of you have a small business at home or maybe your family. Prepare for
the projected income statement for 5 years of your business. If none, use you daily
allowance and your personal expenses. Write your answers in your notebook.
Needs
Excellent: 5pts Average: 3pts. Improvement:
2pts.
Format must be Format is incorrect Format is incorrect
correct from the from the given from the given
Accuracy given format based format based on the format based on the
and Format on the discussion discussion and the discussion and the
and the computation computation is computation is
is accurate. accurate. inaccurate.
Overall aspects of the Overall aspects of The statement is
statement are clean the statement are unclean and not
Presentation
and readable. unclean and readable
readable.
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