Senior High School

Business Enterprise Simulation

Quarter 3 – Module 4 –
Introduction of an Enterprise
Business Plan
 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.

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 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
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
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 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.
A. True B. False C. Maybe D. I Don’t Know

Lesson
Introduction of an
1 Enterprise Business Plan
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 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 and refresh your knowledge by answering the

What’s In Venn Diagram below. Grab a

pen and let’s begin!

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.

Primary Data Source Secondary Data Source

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 mast
ery of the lesson.

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 Before we start this
module, let us reflect on
the short passage below.

What’s New

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 Make It Work with a Plan

Whether you’re starting a small business or exploring ways to expand an

existing one, a business plan is an important tool to help guide your decisions. Think
of it as a roadmap to success, providing greater clarity on all aspects of your business,
from marketing and finance to operations and product/service details.

Ponder on the following saying:

“If you fail to plan, then you plan to fail.”

Answer the following questions:

• What does this passage mean?

• In your opinion, how does planning for one’s business help in its success or
failure?
• How can a business plan help you with the planning of your business?
Are you ready to learn today? In this module, you will learn
how to make a
business

What is It 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?

The Business Plan

A business plan is a written description of your business's future.
Entrepreneur Asia Pacific (n.d.) defines is as a written document describing the nature
of the business, the sales and marketing strategy, and the financial background, and
containing a projected profit and loss statement.

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.
According to Entrepreneur Asia Pacific (n.d.), a good business plan follows
generally accepted guidelines for both form and content. There are three primary parts
to a business plan:
• The first is the business concept, where you discuss the industry, your business
structure, your particular product or service, and how you plan to make your business
a success.

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• The second is the marketplace section, in which you describe and analyze potential
customers: who and where they are, what makes them buy and so on. Here, you also
describe the competition and how you'll position yourself to beat it.
• Finally, the financial section contains your income and cash flow statement, balance
sheet and other financial ratios, such as break-even analyses. This part may require
help from your accountant and a good spreadsheet software program.
Breaking these three major sections down even further, a business plan
consists of seven key components:
1. Executive summary
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.
Why is a Business Plan Important?
Jared Lindzon (2019) stated that a well-written business plan is an important
tool because it gives entrepreneurs the ability to lay out their goals and track their
progress as their business begins to grow. Formulating a business plan should be the
first thing done when starting a new business. Business plans are also important for
attracting investors so they can determine if your business in on the right path and
worth putting money into.
Lindzon (2019) said that business plans typically include detailed information
that can help improve the business’s chances of success, like a market analysis,
competitive analysis, customer segmentation, marketing, logistics and operations
plans, cash flow projection and an overall path to long-term growth.
Though it may sound tedious and time-consuming, business plans are critical
to success. To outline the importance of business plans, here are 10-reasons why you
need one for your small business.
1. To help you with critical decisions. Building a business plan allows you to
determine the answer to some of the most critical business decisions ahead
of time. Creating a robust business plan is a forcing function—you have to sit
down and think about major components of your business before you get
started, like your marketing strategy and what products you’ll sell. You
answer many tough questions before they arise. And thinking deeply about
your core strategies can also help you understand how those decisions will
impact your broader strategy.
2. To iron out the kinks. Putting together a business plan requires
entrepreneurs to ask themselves a lot of hard questions and take the time to
come up with wellresearched and insightful answers. Even if the document
itself were to disappear as soon as it’s completed, the practice of writing it
helps to articulate your vision in realistic terms and better determine if there
are any gaps in your strategy.
3. To avoid the big mistakes. According to the Small Business
Administration, only about half of small businesses are still around to
celebrate their fifth birthday. While there are many reasons why small
businesses fail, many of the most common are purposefully addressed in
business plans. However, the exercise of creating a business plan can help
you avoid these major mistakes. Whether it’s cash flow forecasts or a
product-market fit analysis, every piece of a business plan can help spot
some of those potentially critical mistakes before they arise.

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 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 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.

Questions Every Business Plan Should Answer

Keira Abbamonte (2018) stated that as a rule, business plans are very tactical.
They outline clear steps and goals to take your business from idea to growing
company. A business plan should aim, more broadly, to address a handful of
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overarching questions. These are the questions you need answers to and the answers
that investors, lenders, and other readers of your business plan are looking for.
• Why are you in business? Talk about your mission. What drives you and the
business— beyond revenue and profits?
• What does the market look like? Discuss who your potential customers are, and
what pain points they have that only you can solve. Analyze your competition—
their business, their performance, and their weaknesses. How does your
business idea fit into the market in relation to them?
• What will you do? Detail how your business is different from what’s out there.
Explain what you’ll offer, how you’ll solve customer problems, and how the
market will respond to your business. How will the industry change when you
enter it?
• How will you grow? This is where you’ll specify financials, projections, and
where you expect the company to be in the future. You should also include
plans for how the business will scale. Who will you need to hire and what will
their responsibilities entail?
• What do you need? Finish with your ask. Talk about what you need (financial
investment, a loan, a partnership, etc.), how you’ll use it, and what you’re
offering in return (equity, collateral, etc.). Where will that investment take your
business?
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?

After studying the lesson in

What’s More this module, let us now apply the competencies that you
have gained. Don’t worry.
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 You got this!
Independent Activity 4.1: Delving Deeper
Let us check our understanding of the lesson that you had in this module. Using your
own words and understanding, answer the following:

Independent Activity 4.2: The 3 Primary Parts of a Business Plan

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.

_________ 1. Business structure

_________ 2. Financial statements
_________ 3. Potential customers
_________ 4. Break-even analysis
_________ 5. Products or services to offer the market

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.

Independent Activity 4.4: Finding your Purpose

Analyze the following situations and identify which among the purposes of a business
plan is addressed. Write the letter of the correct answer.

A. to help you with critical decisions

B. to iron out the kinks
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 C. to avoid the big mistakes
D. to prove the viability of the business
E. to set better objectives and benchmarks
F. to reduce risk
G. to provide a guide for service providers
H. to secure financing
I. to better understand the broader landscape
J. to communicate objectives and benchmarks

_________ 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.

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.

Independent Activity 4.6: For What It’s Worth

Write a one-paragraph essay that illustrates the importance of crafting a
business plan. How can this process affect one’s business?

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 Let us now generalized our
learnings! We have
What I Have encountered different
concepts in this module.
Learned

How important a role does planning play in the success of a new

business?
Planning for your business is the groundwork for a successful business. Recall what
you have learned and fill in the blanks on the following statements:
1. A ___________________ is written document describing the nature of the
business, the sales and marketing strategy, and the financial background, and
containing a projected profit and loss statement.
2. There are three primary parts to a business plan: (1) ___________________, (2)
___________________, and (3) ___________________.
3. Though it may sound tedious and time-consuming, business plans are
___________________ to success.
4. There are ten reasons why you need one for your small business: (1) to help you
with ___________________, (2) to iron out the ___________________, (3) to avoid the
___________________, (4) to prove the ___________________ of the business, (5) to
set better ___________________, (6) to ___________________ objectives and
benchmarks; (7) to provide a ___________________ for service providers, (8) to
secure ___________________; (9) to better understand the ___________________;
and
(10) to reduce ___________________.
5. The questions that you need answers to and the answers that investors,
lenders, and other readers of your business plan are looking for are: (1)
___________________; (2) ___________________; (3) ___________________; (4) the
___________________; and (5) ___________________.

Let us now apply the

What I Can learned by preparing our own competencies that we

have

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 Do business idea.

Prepping your Business Idea

Recall the chosen business idea that you have analyzed and decided to pursue
on. We can now start converting that business idea into a concrete business
enterprise. But first, we must have a good plan. Answer the following questions to
start preparing for your business plan.

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 Let us now check how
we fare in our Post -
Assessment 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.
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
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 d. making critical decisions
B. communicating objectives
c. understanding the and benchmarks 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
15
 A. ironing out the kinks C. reducing risks
B. proving the viability of the business 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.
A. True B. False C. Maybe D. I Don’t Know

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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).

___________________ (name of the store) expects to catch the interest of a regular

loyal customer base with its wide range of ___________________ (product/s or service/s
offered). The company plans to build a strong market position in the town, due to the
owners' industry experience and mild competitive climate attitude possessed. The
store aims to offer its products at a competitive price to meet the demand of the as
___________________ (target market).

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.

Products and Services

___________________ (name of the store) offers trends in ___________________
(market niche). (Describe your product/service offerings. How are they different from
your competitors?)
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________

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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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