Republic of the Philippines

Department of Education
PUBLIC TECHNICAL-VOCATIONAL 
HIGH SCHOOLS

Unit of Competency: Develop a Business Plan 

Module no.6 Module Title: Developing a Business Plan 

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 ACKNOWLEDGMENT

 The Department of Education wishes to extend thanks and

appreciation to the representatives of the different Secondary Technical-
Voca
Vocatition
onal
al Scho
School
ols
s who
who share
shared
d thei
theirr expe
expert
rtis
ise
e in deve
develo
lopi
ping
ng the
the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials
Materials (CBLM)
(CBLM) on May 25-30,
25-30, 2009 at the Marikina Hotel, Marikina
Marikina
City.

 This learning material was developed, enhanced and refined by the

following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN

Don Alejandro Roces Sr. Science – Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science – Technology High School

MA. JOSEFINA B. LUNA

E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
 Jones Rural School

ROLANDO M. CUBANGBANG
 Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL 

MARISOL E SALDIVAR

MIA LORAINE MANUEL 

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.

Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of 

Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN

Don Alejandro Roces Sr. Science – Technology High School
Roces Ave., Brgy. Obrero, Quezon City 
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science – Technology High School
Roces Ave., Brgy. Obrero, Quezon City 
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
 Jones Rural School
 Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
 Jones Rural School
 Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL

Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela 

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL

Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.

Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN

Don Alejandro Roces Sr. Science – Technology High School
Roces Ave., Brgy. Obrero, Quezon City 
NCR

Encoder:

MIA LORAINE MANUEL 

Facilitator:

RENE GAOR DELFINO

Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA – VSA II

Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.

Consultant
  TABLE OF CONTENTS

Module Title. Developing a Business Plan....................................1

Pre-test............................................................................................1

LO 1. Organize the Main Parts of a Business Plan ..........................4

Let Us Study....................................................................................4
Activity I............................................................................5
 Problem/Need........................................................................6
Activity II...........................................................................6
 Statement of Vision, Mission and Values................................6
Activity III..........................................................................7
 Marketing Plan.......................................................................7
Activity IV..........................................................................7
 Production and Technical Plan...............................................10
Activity V...........................................................................10
 Organizational/Management Plan..........................................11
Activity VI..........................................................................11
 Sustainability.........................................................................12
Activity VII.........................................................................13
 Sample of Projected Revenue..................................................14
Activity VIII........................................................................15
 Sample of Income Statement..................................................16
Activity IX..........................................................................17
 Social Impact.........................................................................17
Activity X...........................................................................17
How Much Have You Learned?........................................................18

Post-Test.........................................................................................22
Key to Correction.............................................................................24
 HOW TO USE THIS MODULE

Welcome to the Module “Developing a Business Plan”. This module

contains instructional materials and a ctivities for you to complete.

 The unit of competency “Develop a Business Plan” contains the

knowledge, skills and attitudes required for the course Entrepreneurship.

You are required to go through a series of learning activities in order to

complete each of the learning outcomes of the module. Follow these activities
on your own and answer the Self-Check at the end of each learning activity.
 If you have questions, don’t hesitate to ask your teacher for assistance.
 MODULE VI

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : DEVELOP A BUSINESS

PLAN

MODULE TITLE : DEVELOPING A

BUSINESS PLAN

SUGGESTED DURATION : 20 Hours

WHAT IS THIS MODULE ABOUT?

 This module covers the knowledge, skills and attitudes required

in developing a workable business plan.

WHAT WILL YOU LEARN?

At the end of this module, you should be able to:

a. organize the main parts of a business plan.

WHAT DO YOU ALREADY KNOW?

Pre-test

Let us find out how much you already know.

A. Read and understand the items being described below. Choose

the letter of the correct answer and write it in your quiz
notebook.

a. Addendum d. Target Market

b. Market Trends e. Sustainability  
c. Mission f. Vision

1. It refers to a group of persons who use and patronize the

products/services that specifically fits their needs/wants.
2. These are documents or information attached to clarify or
support the information in the original document.
3. It is a clear description of goals.
4. It is a description of what the proponent sees if the problem is
solved.
5. It means support for business in environmental issues.

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B. Multiple Choice. Read and understand the following statements
then select the letter of the correct answer and write it in
 your quiz notebook.

1. It is the detailed description on how the business is

implemented.
a. evaluation plan
b. management plan
c. operational plan
d. organizational plan
2. It is the process of setting goals for a particular business
undertaking done through a step-by-step process.
a. Business planning
b. Feasibility planning
c. Marketing plan
d. Production plan
3. It gives the information on financial concerns and stability of 
the plan.
a. Financial Plan
b. Marketing Plan
c. Organizational Plan
d. Production Plan
4. Business production and services are varied based
on____________.
a. innovation
b. lifestyle of the people
c. needs and wants
d. science and technology 
5. This is the center of interest in a given garment.
a. balance
b. emphasis
c. harmony 
d. proportion
6. It is part of a business plan which can be both within or beyond
the control of the entrepreneur.
a. mission
b. objectives
c. risk
d. vision
7. This plan is a course of action for obtaining and using the
money that is needed to implement the goals of the business
organization.
a. Financial
b. Marketing
c. Organizational
d. Production

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8. It is the place where we can buy different goods from one or a
number of vendors.
a. church
b. market
c. pack
d. school
9. The 4 P’s of a good marketing plan are.
a. Package, Place, Plan, Price
b. Plan, Place, Product, Price
c. Place, Price, Product, Promotion
d. Price, Place, Promotion, Purchase
10. It is an outline of your business.
a. Business Plan Proper
b. Executive Summary 
c. Overview of the Business
d. Personal Details

3
LESSON 1

ORGANIZE AND CONSTRUCT THE MAIN PARTS OF A BUSINESS

PLAN

WHAT IS THIS LESSON ABOUT?

 This lesson presents concepts on how to organize the main

parts of a business plan.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:

1. organize the main parts of a business plan;
2. use survey instruments to gather data;
3. analyze and interpret survey results; and
4. construct preliminary parts of a business plan based on the
organized main parts

LET US STUDY

Words to study 

Sustainability is the support for a business on environmental

issues.
Addendum  is a document or information attached or added to
clarify, modify or support the information in the
original document or written work.
Target Market  refers to a group of persons who use and patronize
the products/services that specifically fit their
needs/wants.
Market Trends  are used to provide strategic information and
leads that will aid and sustain business development.
Market size is the number of buyers and sellers in a particular
market.
Business Risk is the probability inherent in a firm’s operations
and environment (such as competition and adverse
economic conditions) that may impair its ability to
provide returns on investments.

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ACTIVITY I: The Business Plan

Directions: Recall your previous lesson on the parts of a

business plan. Then fill in the parts of the business plan in the
illustration below.

Parts of a
Business Plan

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 In organizing the main parts of a business plan one must
consider the survey instruments to gather data and the results to
analyze and interpret the business plan.

MAIN PARTS
Section 4

Business Plan Proper

I. THE PROBLEM/NEED

 This pertains to the description of the problem/need

being addressed to, as well as the reasons/rationale why the
problem/need must be addressed by the business and the
descriptions on how the business has solved the problem/need.

ACTIVITY II

Fill in the given template of the Problem/Need of the business

plan based on your gathered data.

THE PROBLEM/NEED
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 

II. STATEMENT OF VISION, MISSION AND VALUES

VISION 
It is a description or statement of what the proponent sees if the
problem/need is solved.

MISSION 
It is a clear description of goals and objectives that presents practical
steps to achieve the vision.

VALUES 
It is a clear statement of values critical to the culture, integrity and
activities of the business.

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ACTIVITY III

Construct your own business mission, vision and values based

on your prepared product concept.

VISION
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 

MISSION
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 

VALUES
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 
 _____________________________________________________________________ 

III. THE MARKETING PLAN

A. Research and Analysis

It is a description of the target market, market size,
competition, market share and market trends.

B. Marketing Strategies
 This includes the Four P’s – price, promotion, product and
place. The Four P’s all work together to reinforce the positioning
strategy which is based upon what your target customer wants
or needs.

ACTIVITY IV

Fill in exercises A, B and C based on your product concept and

data gathered.

EXERCISE A

MARKET PLAN

Instructions: In a group, write the market plan and be sure to include

the features of your product or service, the target audience
and your marketing strategies.

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 Product:________________________ 
 Target Market: Who will buy your product/service? Why will they buy
it?

OTHERS
PRODUCT 
AGE JOB RESIDENCE (Please
INTEREST 
Specify)
 ___________ ___________ ___________ ___________ ___________ 

Competitors: Who else sells a product or service similar to yours?

(List up to three)
a. Excellent Bakery 
b. Heaven’s Touch Bakery 
c. Pan de Manila

Do your competitors have a large clientele, or they seem to be busy?

a. ___________________ b. ___________________ c. __________________ 

When are your competitors most busy?

HOURS DAYS MONTHS

a.____________________ ______________________ _____________________ 
b.____________________ ______________________ _____________________ 
c.____________________ ______________________ _____________________ 

Where do your competitors’ customers live?

a. Within one kilometer: Two to five kilometer:
b. Within one kilometer: Two to five kilometer:
c. Within one kilometer: Two to five kilometer:

EXERCISE B

MARKET PLAN

Comparison Chart of Competitors:

Directions: Underline the appropriate answer that best describes the

statement.

COMPARE Excellent Heaven’s Touch Pan de Manila

Market Share % GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR

Quality  GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR
Location GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR
Size of Facility  LARGE,MED,SMALL LARGE,MED,SMALL LARGE,MED,SMALL  
Prices HIGH, AVERAGE,LOW HIGH, AVERAGE,LOW HIGH, AVERAGE,LOW
Reputation GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR

8
Pricing:
How much will you charge?______________________________________ 
Why will you charge this price? __________________________________ 
How much do your competitors charge?__________________________ 
Why do your competitors charge that price?______________________ 

Advertising

Indicate choice of sales tools: REASON FOR CHOOSING THIS METHOD

 Telephone _________________________________________________________ 
Personal Contact _________________________________________________________ 
Paid Advertising _________________________________________________________ 
a. Newspaper Ads
b. Radio and TV
c. Posters, signs and billboards
d. Direct mail brochures, flyers, letters, samples (choose one)
Free Publicity _________________________________________________________ 
Using Contacts _________________________________________________________ 
Public Relations _________________________________________________________ 
Sales Promotions _________________________________________________________ 

 EXERCISE C

MARKET PLAN

Public Relations

What can you do to get the attention of the potential customers:

Newspapers?   ________________________________________________ 
Magazines?   ________________________________________________ 
 TV Stations?   ________________________________________________ 
Radio Stations?   ________________________________________________ 
Promotions   ________________________________________________ 

Which of the following will you use to get your product or service into
the hands of the customers? Why?
Games ________________________________________________ 
Coupons ________________________________________________  
Special Prices ________________________________________________ 
Double Offers ________________________________________________ 
Other (pls. specify) ________________________________________________ 

9
IV. PRODUCTION AND TECHNICAL PLAN

The Production Paradigm

Transformation
Process
Inputs Outputs
ASSEMBLING
LABOR FINISHED PRODUCTS:
CANNING
LAND BAGS
CONSTRUCTING
MACHINE T-SHIRTS
CULTURING
FURNITURE
RAW MATERIALS
DRAWING
CANNED GOODS
SEWING PASTRY
MILLING
PRINTING
BAKING

ACTIVITY V

Illustrate your own production paradigm based on your product

concept using the box below.

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V. ORGANIZATIONAL/MANAGEMENT PLAN

 This plan includes the members of the team and the team’s
contribution to the business.

Here is an example of an organizational/management

chart:

Manager/Owner

Supervisor 

Clerk

Maintenance

ACTIVITY VI

Design your own organizational/management chart based on

 your chosen business.

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SECTION V
I. SUSTAINABILITY

I. Financial Plan
“Where the money comes from and where it goes.”
 This section of the business plan is the key area, where
people will judge how competent you are as an entrepreneur.
It must be well written, concise and sufficiently documented.

Example of financial plan:

A. Anong Sarap Bakery, the initial capital is P 40,000.00.

 There will be five members. Each of the members shall
share Php 8,000.00.

B. Monthly Expenses
 Table 1
MONTHLY EXPENSES

FIXED COST 
Rental  PhP3,000.00
Salaries:
Baker 3,500.00
Helper 3,000.00
Roller 450.00
Mixer 900.00
Slicer 200.00
 Tools & Utensils 175.00
(A)TOTAL FIXED COST PhP 11,225.00

VARIABLE COST (Month)

Raw Materials
Flour PhP 3,000.00
Butter/Lard 550.00
Yeast/Leavening 120.00
Egg 1,000.00
Flavoring 500.00
Sugar 1,000.00
 Telephone Bill 600.00
Electricity 1,000.00
LPG 1,000.00
Water 500.00
 Transportation 1,000.00
Miscellaneous 2,000.00
(B)TOTAL VARIABLE PhP 12,370.00
COST
(A+B) TOTAL MONTHLY Php 23,595.00
COST

Table 1 shows the projected expenses per month during the

initial year of operation. It is noted that fixed cost is greater that the
variable costs.

12
ACTIVITY VII

Show your projected expenses per month during the initial year of
 your operation based on your product concept. Use table 1 as your
example.

FIXED COST 
Rental
Salaries:

(A)TOTAL FIXED
COST

VARIABLE COST
(Month)
Raw Materials

 Telephone Bill
Electricity 
Water
 Transportation
Miscellaneous
(B)TOTAL VARIABLE
COST
(A+B) TOTAL
MONTHLY COST

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 Table 2
PROJECTED REVENUE

Projected Projected Yearly

Types of  Daily Monthly
Costing Volume Volume Projected
Bread Revenue Revenue
Daily Monthly Revenue
C – P 1.50
Peter 
M - 50¢ 200 P 400.00 6000 P 12,000.00 P144,000.00
Pandesal
SP – P 2.00
C – P 4.00
Monay
M – P 1.00 100 P 500.00 3000 P 15,000.00 P180,000.00
Lisa
SP – P 5.00
C – P 4.50
Mama
M – P 1.50 50 P 300.00 1500 P 9,000.00 P108,000.00
Empanada
SP – P 6.00
C – P 1.75
Hopia Like
M - .75¢ 150 P 375.00 4500 P 11,250.00 P135,000.00
Ko
SP – P 2.50
C - P 22.00
Tasty ang
M – P 5.00 25 P 675.00 750 P 20,250.00 P243,000.00
Bread ko!
SP – P 27.00
Total 525 P 2,250.00 15750 P 67,500.00 P810,000.00
Cost – C
Mark-up - M
Selling price - SP
Table 3
MONTHLY PROJECTED COST REVENUE

  Jan Feb Mar Apr May Jun

Revenue P67,500.00 P69,187.50 P72,646.88 P79,911.56 P87,902.72 P96,692.99
Cost P23,595.00 P24,184.88 P25,394.12 P27,933.53 P30,726.88 P33,799.57
Projected P43,905.00 P45,002.63 P47,252.76 P51,978.03 P57,175.84 P62,893.42
Net Profit

Table 4

Jul Aug Sep Oct Nov Dec Total

P99,110.32 P94,154.80 P91,800.93 P87,210.88 P104,653.06 P125,583.67 P1,076,355.31
P34,644.56 P32,912.33 P32,089.52 P30,485.05 P36,582.06 P43,898.47 P376,245.98
P64,465.75 P61,242.47 P59,711.40 P56,725.83 P68,071.00 P74,878.10 P700,109.33

 Table 4 shows that the months from August to October are

considered non-peak months. It is assumed that the business grows
by its monthly profit because of old and new consumers of the
products. According to the table shown above, August to October are
non-peak months (5% loss from previous month is computed) whereas
 June, November and December are peak months (for June, 10%
increase of sales from previous month and 20% for the latter months).

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Break-Even

Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)

When TR is greater than FC and VC means the business is earning profit.

When TR is less than the FC + VC means the business is losing.

When TR = then FC + VC, the business is break-even.

 Tables 2 & 3 showed the projected cost and revenue by month.
Based on the table the Total Revenue is greater than the combined
fixed and variable cost. It indicates that Anong Sarap Bakery has the
great potential of generating profit.
ACTIVITY VIII

Compute your projected cost and revenue by month based on you

product concepts. Use tables 2 and 3 as your examples.

Projected Revenue
Projected Projected Yearly
Daily Monthly
Types Costing Volume Volume Projected
Revenue Revenue
Daily Monthly Revenue

Total

Projected Monthly Revenue

Jan Feb Mar Apr May Jun

Revenue
Cost
Projected
Net Profit
July Aug Sep Oct Nov Dec Total

15
Examples of Projected Income Statement and Cashflow

Table 4
 ANONG SARAP BAKERY
 PROJECTED INCOME STATEMENT
FOR THE YEARS ENDED 2008 AND 2009

2008 2009
REVENUE PhP 1,076,355.31 PhP 1,237,808.60
Cost /Expenses PhP376,245.98 Php432,682.87
Projected Net Income PhP700,109.33 PhP805,125.73
Projected Income for the year is expected to by at least rise by 15%
Table 5
CASH FLOW 1ST QUARTER OF 2008
January February March
Beginning Cash Balance P 40,000.00 P 60,310.00 P 81,127.75
Cash Inflows
Net Income P 43,905.00 P 45,002.63 P 47,252.76
P 83,905.00 P 105,312.63 P 128,380.51
Cash Outflow
Fixed Cost P 11,225.00 P 11,225.00 P 11,225.00
Variable Cost P 12,370.00 P 12,959.88 P 14,169.12
P 23,595.00 P 24,184.88 P 25,394.12
Ending Cash Balance P 60,310.00 P 81,127.75 P 102,986.39

I. For the initial operation of Anong Sarap Bakery, the

investments shall come entirely from its 5-member team
sharing equally. Each will have 20% capital share.
II. The initial source fund may be generated by special fund -
raising activities from the school. This can also be coursed
through the YECS for the students to invest.
III. Based on our projection the business will earn 2.5% on the first
month and 5% on the second month. Having this as a
continuing trend, it is expected that after a year, the 15% return
on investment is highly feasible.

ACTIVITY IX

Compute your projected income statement for the year ended and
cash flow for the first quarter of the year based on you product
concept. Use Table 4 and 5 above as you guides.

PROJECTED INCOME STATEMENT

FOR THE YEARS ENDED

REVENUE
Cost /Expenses
Projected Net Income

16
 CASH FLOW 1ST QUARTER OF
January February March
Cash Balance- Beginning
Cash Inflows
Net Income
Cash Outflow
Fixed Cost
Variable Cost
Cash Balance Ending

II. SOCIAL IMPACT

 This part should enumerate the impact of the business

activity to its employees, consumer and the community as well.
Social impact should also emphasize social responsibility to
sound environment and sanitation practices.
 The impact should be stated in a clear and concise
statement that is anchored on the mission, vision and values of
the business.

Social Impact Sample Form

1. Anong Sarap Bakery aspires to be the most admired

cooperative bakeshop in Marikina City. Its unique feature is
the cooperative spirit among its incorporators. In the next
 years to come we want this bakery to be operative inside the
ERVHS Campus, where students can have their on-the-job-
training (OJT) and they can invest in the future.
2. Anong Sarap Bakery will conduct activities that would
promote spirit of entrepreneurship through active
participation in community and school activities since they 
are the number one clientele of the bakeshop.
3. Our target is to have a bakeshop where students through
their on-the-job-training (OJT) program can work with. It
vows to support the training needs of the school in terms of 
baking, marketing, back office operations and food service.
Anong Sarap Bakery considers itself as partner in progress of 
the community and school.

17
ACTIVITY X
Write the social impact of your chosen business by answering
the following.

1. What is the desired outcome of your business as stated in

 your vision statement?
 ___________________________________________________________.
2. What are the business activities and its corresponding social
impact? Write it in the appropriate column.

Business Activity Social Impact

1.
2.
3.
4.

3. What are your business programs directly benefiting the

following stakeholders?
a. employees
b. school
c. community 

LET US REMEMBER

A workable business plan maximizes the chances

of starting a viable and sustainable business.

HOW MUCH HAVE YOU LEARNED?

ACTIVITY
Prepare your own business plan according to your chosen
business following the given format .

Business Name :
Location :
Name of Owner :

Introduction :
is a registered business engaged in
owned by .

Business goals are as follows:

a. The operation started on

b. The location could be reached by
c. The business could be expanded by

18
  Table of Contents
Section I : The Business

1. Description of the Business

 The business is engaged in the distribution of or production, or
of servicing customers.

2. Product/Service
 The product/service is
3. Market
Production will be distributed in (mention primary and
secondary market) The clients belong to (description of the
socio-economic level). The product is bought by clients for the
following reasons:

4. Location of the Business

 The business is located at
It can easily be reached by .
5. Competitors are as follows:

(State the name of the company and other relevant facts such as
size and possible sales)
A competitor’s profile includes price, quality, location, image
projected, strategies of selling and operations.
6. Price
 The current price is _____. It is derived from the following
factors: (production cost and marked up costs) .

7. Marketing strategies
 The product will be distributed in the following manner:

8. Management
 The management group is composed of the following (name,
position, responsibility and qualification)

9. Personnel
 The personnel needed are the following (enumerate the type of 
work and their qualifications)

Summary of Section One

19
Section II: Financial Data

1. Sources and application of funding:

Secure financial assistance from

For the following purposes

Using the following collaterals

2. Capital Equipment List

 The capital and equipment lists are the following:

Briefly describe the equipment and their uses. Include

processes employed in the production)

3. Balance Sheet
 This is a statement of the financial condition of an enterprise at
a given point in time usually only a focus, quarterly, semi-
annually or annually. It shows the owner how money has been
invested and the accrued profit or losses.

(Name of Business)
Balance Sheet
 June 30, 20XX

ASSETS
Cash P xxx,xxx.xx
Account Recievable xxx,xxx.xx
Supplies xxx,xxx.xx
Equipment xxx,xxx.xx

 TOTAL ASSETS P xxx,xxx.xx

LIABILITIES AND OWNER’S EQUITY

Accounts Payable P xxx,xxx.xx

Bank Loan xxx,xxx.xx P xxx,xxx.xx

Capital P xxx,xxx.xx
Add: Net Income xxx,xxx.xx
 Total xxx,xxx.xx
Less: Drawing xxx,xxx.xx xxx,xxx.xx

 TOTAL LIABILITIES AND OWNERS EQUITY P xxx,xxx.xx

20
 4. Break-even Analysis
(It is a tool used by an entrepreneur in solving managerial
problems). It compares the total resources (TR) with the total
cost (TC)

Break-Even

Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)

When TR is greater than FC and VC means the business is earning profit.

When TR is less than the FC + VC means the business is losing.

When TR = then FC + VC, the business is break-even.

5. Income Projection (Profit-Loss Statement)

a. Detailed by month(for the first year)

(Name of Business)
Income Statement
 For the Month Ended June 30, 20XX

REVENUES
Bank Loan P xxx,xxx.xx

OPERATING EXPENSES
Salary Expense P xxx,xxx.xx
Rent Expense xxx,xxx.xx
Supplies Expense xxx,xxx.xx
 Total Operating Exp. xxx,xxx.xx

NET INCOME P xxx,xxx.xx

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Post-test

Let us find out how much you already know.

B. Read and understand the items being described below. Choose

the letter of the correct answer and write it in your quiz
notebook.

d. Addendum d. Target Market

e. Market Trends e. Sustainability  
f. Mission f. Vision

1. It refers to a group of persons who use and patronize the

products/services that specifically fits their needs/wants.
2. These are documents or information attached to clarify or
support the information in the original document.
3. It is a clear description of goals.
4. It is a description of what the proponent sees if the problem is
solved.
5. It means support for business in environmental issues.

B. Multiple Choice. Read and understand the following statements

then select the letter of the correct answer and write it in
 your quiz notebook.

1. It is the detailed description on how the business is

implemented.
a. evaluation plan
b. management plan
c. operational plan
d. organizational plan
2. It is the process of setting goals for a particular business
undertaking done through a step-by-step process.
a. Business planning
b. Feasibility planning
c. Marketing plan
d. Production plan
3. It gives the information on financial concerns and stability of 
the plan.
a. Financial Plan
b. Marketing Plan
c. Organizational Plan
d. Production Plan
4. Business production and services are varied based
on____________.
a. innovation
b. lifestyle of the people

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 c. needs and wants
d. science and technology 
5. This is the center of interest in a given garment.
a. balance
b. emphasis
c. harmony 
d. proportion
6. It is part of a business plan which can be both within or beyond
the control of the entrepreneur.
a. mission
b. objectives
c. risk
d. vision
7. This plan is a course of action for obtaining and using the
money that is needed to implement the goals of the business
organization.
a. Financial
b. Marketing
c. Organizational
d. Production
8. It is the place where we can buy different goods from one or a
number of vendors.
a. church
b. market
c. pack
d. school
9. The 4 P’s of a good marketing plan are.
a. Package, Place, Plan, Price
b. Plan, Place, Product, Price
c. Place, Price, Product, Promotion
d. Price, Place, Promotion, Purchase
10. It is an outline of your business.
a. Business Plan Proper
b. Executive Summary 
c. Overview of the Business
d. Personal Details

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 KEY TO CORRECTION

Pre-test and Post-Test

A. 1. F
2. A
1. C
2. C
3. E
B. 1. C
2. A
1. A
2. C
3. A
4. C
5. A
6. B
7. C
8. B

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