Republic of the Philippines

Department of Education

HIGH SCHOOLS

Unit of Competency : Finalize Evaluated Business Plan

Module Title : Finalizing Evaluated Business Plan
Module No.
2
 TABLE OF CONTENTS

Module Title: Finalizing Evaluated Business Plan 1

How to Use this Module 1

Summary of Learning Outcomes 2

Pre-Test 3
Lesson 1 – Finalizing Evaluated Business Plan 4
Let Us Study 4
Sample of a Business Plan 5
Rubrics 20
Let Us Remember 23
How Much Have You Learned? 24
Post-Test 24
Reference 25
Key to Correction 26
Acknowledgement 27
 HOW TO USE THIS MODULE
Welcome to the Module “Finalizing Evaluated Business Plan/s”.
This module contains instructional materials and activities for you to complete.

The unit of competency “Finalize Evaluated 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.

1
COURSE : ENTREPRENEURSHIP IV

UNIT OF COMPETENCY : Finalize Evaluated Business

Plan/s

MODULE TITLE : Finalizing Evaluated Business

Plan/s

MODULE DESCRIPTION : This module covers the

knowledge skills and attitudes
required in finalizing evaluated
businessplan.

SUGGESTED DURATION : 10 Hours

SUMMARY OF LEARNING OUTCOMES:

Upon completion of the module the students should be able to: LO1.

Finalize Evaluated Business Plan/s

2
 WHAT WILL YOU LEARN?

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

1. Finalize the evaluated business plan based on the
criteria set.

WHAT DO YOU ALREADY KNOW?

PRE TEST
Let us find how much you have already know about the process of
evaluating a business plan. Write the letter only of your answer in
your quiz notebook?

1. Description of the target market is formed in the part

of the business plan.
a. Marketing Plan
b. Marketing Strategies
c. Operating Strategies
d. Production Strategies
2. Detailed description of products or services is in what part of the
business plan?
a. Marketing plan
b. Production and technical plan
c. Operation plan
d. Organization and management
3. Which part of the business plan describes how the business has solved the
problems?
a. Statement of vision
b. The marketing plan
c. The problem need
d. Production technical plan
4. Which part of the business plan presents the data on how the
products/service will be further developed.
a. Financial Plan
b. Marketing Plan
c. Production Plan
d. Operation and technical Plan
5. What part of the business plan presents a clear statement of values
critical to culture, integrity and activities of the business?
a. Marketing plan
b. Production plan
c. Operational plan
d. Statement of vision, mission and values

3
LESSON I
FINALIZING EVALUATED BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson deals with how to critically evaluate a business

plan in order to come up with a final form.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be ableto:

1. Finalize the evaluated business plan based on the set of criteria.

2. Appreciate the importance of using business plan.

LET US STUDY

WORDS TO STUDY

Business Plan is a step by step guide in the thorough operation of the

business enterprise.
Enterprise is a project activity commercial or industrial. It may also
be an organizational activity.
Assessment Tool is an instrument used to evaluate aperformance.
Evaluation is a rigorous analysis of completed or ongoing activities
that determine or support management accountability,
effectiveness and efficiency.
Component is a uniquely identifiable input, part, piece,
assembly or sub- assembly, system or sub – system
that:
1. is required to complete or finish an activity, item or
job.
2. Performsa distinctive and necessaryfunction in the
operation of a system or;
3. is identified to be included as a part of a
finished, packaged and labeled item.
Criteria is the statement of need, rules, standards or tests that must
be used in evaluating a decision, idea, opportunity,
program, projects, etc. to form correct judgment
intended goal.

4
Let us study an example of business plan with complete parts for you to use as
benchmark in evaluating your fellow student’s business plan.

I. Executive Summary

Pumpkin Sorbet is cooperative in nature. It is to be run by the students

themselves. Its initial capital for the first month of operation of PhP 90,000.00 will be coming from
the student-owners by means of their investments as their stock in the business and from fund-
raising activities as well. It is a food stall located inside the campus. Sorbet as the main product is to
be manufactured by the proponents and to be sold and distributed to the target markets of 530
students daily include the MBHS students, the elementary pupils undergoing the feeding programs
and selected hospitals in District II. Since the main product is made from pumpkin or squash, it
promotes healthy, affordable and satisfying pumpkin derivative products. The proponents made
an agreement with the MBHS administration on how they can be of help on the promotion of
nutrition and on increasing the agricultural market especially on “Pagkaing Sapat Program”. They are
currently on negotiation with the Principals of Cupang, Buli, and Alabang Elementary schools
regarding the inclusion of the pumpkin sorbet in the dietary supplement among the students in the
school’s feeding program. Since it is a vegetable-flavoured ice cream, it contains lots of nutrients
like beta-carotenes and lutein.
Pumpkin Sorbet aims to be the leading producer and provider of nutritious and
affordable home-made ice cream inside the campus of MBHS and other Elementary schools near
the said school. The total population of MBHS is 3,219 students and based on the registered school
nurse, about 60 of them is malnourished. Estimating 10% of the population will buy the product.
The student- owners will be trained and guided before they handle the business to avoid lapses and
misconceptions. They will be supervised by their Business Education mentors.
The management and operation of Pumpkin Sorbet starts from inventory and
estimation of the volume of ice cream to be produced daily. Second is purchasing of the ingredients
and raw materials needed to complete the preparation of the product. Third are production, packaging
and freezing of the ice cream. Lastly, marketing and selling of the product. As a food stall, it ensures
safety and sanitation of its business structures and cleanliness of the product itself. It aims to lower
the price of the ice cream without sacrificing its quality. It has a shelf life of five days. Since
Since it is new in the business line of MBHS, it initially aims to capture 10% of the
existing market shares which is currently dominated by school canteen’s Kyla’s Ice Cream. And
Creamline Ice Cream and Dan Eric’s Ice Cream which is located within the Espeleta Street.
Pumpkin Sorbet is highly feasible, doable and socially desirable. It will help both
the school and the students. This will serve as learning laboratory for the students of MBHS especially
to the newbie. It will also be the inspiration for the aspiring business men to be a successful
entrepreneur. The proponents of the business advocates being the leading promoter of agricultural
products specifically squash. This will help increase the demands of pumpkin or squash, thereby
economically promotes livelihood among the squash growing farmers in the area.

5
II. Overview of the Business

I. Pumpkin Sorbet

II. Pumpkin Sorbet is both the business name and the name of its primary products. It is
cooperative in nature. Specifically, it will produce a pumpkin-flavoured ice sorbet that
will be dressed with sprinkles, marshmallows and peanuts that will surely fit and
guarantee clientele’s satisfaction. It combines innovativeness and creativity in
product concepts such as ice cream with pumpkin as the main ingredient. Dominating
the existing ice cream businesses in Buli as well as in Muntinlupa will be its main
thrust.

III. It envisions to be the leading provider of high quality but affordable ice cream in Muntinlupa.
Continues innovation of the product will be processed to supply the needs of
Muntinlupeňos. Also, it will help ease the malnutrition in Muntinlupa through the help
of pumpkin-flavoured ice cream and somehow help the squash farmers in terms of
increasing the consumption and demand of squash in the city.

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III. Business Plan

The Needs

A. Malnutrition is one of the major problems, Filipinos school children are facing
nowadays. Malnutrition means lacking of the right nutrition needed by the body
resulting which may result to poor academic achievements. This has been
correlated with educational research that malnutrition affects learning abilities of
the child. It is also one of the reasons behind why we have unstable economy. Being
in the public school, the proponents understood most of their classmates were
not eating vegetable-rich products. By these assumptions, the proponents come
up with a concept that will not only satisfy the clientele’s taste but also sustain
the nutrients they need to be healthy aside from the fact, that using squash as
main ingredient in foods will also boosts the agricultural demand for the squash.
This will benefit the squash farmers in the country. This will help us save some
money for the economy and may prevent importation this vegetable.

B. Pumpkin Sorbet, a pumpkin-flavoured ice cream that will surely sustain the needs
of the people, especially the poor children. Children today usually prefer meat more
than vegetables. Ice cream is an all time Filipino favourite; this prompted the
proponents to innovate the usual fruity ice-cream flavours with the use of
vegetable such as pumpkin. The product has almost the same creaminess,
puffiness, and consistency in texture as the commercially available ice-cream and
will surely entice the taste of even the carnivorous children. Unknowingly they are
already including vegetables in their diet.

C. The proponents believe that the clientele will support the product because of its
unique flavour and appearance. With this, Pumpkin Sorbet will be instrumental in
helping alleviate malnutrition cases in the country especially those who are in the
public school system. This may also serve as basis for other entrepreneurs to
discover and innovate more nutritious vegetable flavoured foods other than ice
cream; just like for example bitter gourd, eggplant and other vegetables. The
proponents believe that this will not only address the health problems of the
country but the agricultural economy as well.

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IV. Vision, Mission and Values

Vision

In the name of good customer service, Pumpkin Sorbet envisions as the leading
advocate of healthy and natural food products, working with squash farmers cooperative
and the leading providers of the best pumpkin ice-cream by the year 2010.

Mission

Pumpkin Sorbet aims to produce and sell healthy, clean, nutritious and high
quality sorbets for the clienteles and cooperatively works with the squash farmers in the
city of Muntinlupa. This is through the dedication and passion of the management to
produce this kind of product. In line with these, it sets a mission to achieve at least 20%
return on equity after two years of operation.

Values

Pumpkin Sorbet as a business, commits to give its customers the best product it can
serve. It will maintain its high standard of hard work, hygiene and sanitation in food
preparation and handling and also the proper grooming and etiquette of the owners and
personnel. The dedicated management will give their best to deliver with full sincerity and
honesty for a better customer service. It will give a prompt, fast, accurate and best service
to its clients. The management also sets to create a support system for the squash growing
farmers in order to economically improve their standard of living.

8
V. Market Profile

A. Research and Analysis

Today’s sorbet stalls are believed to have a little improvement for customer’s
satisfaction. The proponents decided that they must undergo a careful observation in the
business location. The management also underwent an official interview with the owners of
current ice cream stalls in Buli. The proponents found out that customers are not that
satisfied with the ice cream sold along the Espeleta Street and most of the products are not
that nutritious to sustain body needs. The management believes that action must be taken
primarily to make a new twist in preparing and serving ice creams that has very huge
market in the nation.
The current status of squash growing farmers in the city where the squash supply
are to be taken was also observed and given attention in order to support them when the
business starts its operations.
With these premises, the proponents decided to produce pumpkin- flavoured ice
cream which will answer the needs of the students in the area. The market will be four (4)
Elementary Schools and one (1) Secondary School. The target students are those who are
malnourished and member of feeding program.

B. Marketing Plan

Table 1
Number of Target Ice Cream Buyers per Consumer Group
Feeding Program Members
Alaban g Sucat Buli ES Cupang
Populace MBHS Total
MBHS ES ES ES

Total

3,160 60 87 84 45 68 3,504

Daily 316 36 52 50 27 49 530

Monthly 6,952 792 1,144 1,100 594 1,078 11,660
Yearly 83,424 9,504 13,728 13,200 7,128 12,936 139,200

Based on the given consumer groups, the daily, monthly, and yearly target buyers
are reflected through the assumption that 10% from MBHS group will buy ice cream from Pumpkin
Sorbet and 60% from those feeding program members will buy every three days. During summer
vacation, Pumpkin Sorbet will only serve their products in different hospitals where we can assure
the sale and can help patient in sustaining their health.

9
VI. Production/Technical Plan

A. Product Description

Pumpkin Sorbet is a business selling a pumpkin- flavoured sorbet. The finished product will be
placed in a plastic cup and depending on the consumers, they will choose if they want their
sorbet to have a dressing (sprinkles) or added flavour. The product as researched was proven
nutritious palatable. Today’s Ice Creams are not that nutritious and of with poor quality.
Pumpkin Sorbet made it with a new twist by means of using vegetable like squash as the main
ingredient. The individual finished products will be package in a cup with design. There will also
be packaging for wholesale purchases

B. Operating Strategies

The business will produce a pumpkin sorbet station with high quality contents and
nutritious value as well. Pumpkin Sorbet will need raw materials to produce the goods to
be sold. These include All- Purpose Cream, Condensed Milk, Cassava Starch, Cheese, Gelatine
Powder, Powdered Milk, Vanilla Essence, and the main ingredients, Pumpkin. The
proponents will be the one to produce the product. Raw materials will be purchased at
Alabang Market or Lianas Supermarket where we can assure the quality and the aspects
of perish ability. The proponents tried to interview the teachers and some students by
offering them a free taste and made a comment after. During the operation, the business
will think of more ideas on how to create more appealing and attractive products.

C. Critical Risk

Table 2
Pumpkin Sorbet’s Position in the Market
Competitors Market Share Target
Kyla’s Ice Cream 35% 30%
Dan Eric’s Ice Cream 45% 40&
Cream Line Ice Cream 20% 20%
Pumpkin Sorbet 10%

Based on the table showed, there are three competitors who dominate the market of
Ice Cream in Buli. Pumpkin Sorbet aims 10% of the market share. Through creativity, uniqueness
and innovation, the management believe that it will be achieved.

10
VII. Organizational Plan

A. Team Members

Figure 1: Organizational Chart

B. Contribution to the Business

Owners– it is responsible for the management and

accountability
of the business itself, at the same time they are the ones who
will produce
the product.
Sales Personnel – it is responsible for the advertisement, selling
promotion of the product.

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VIII. Operational Plan

A. Workflow

Pumpkin Sorbet has a very simple operational plan. It starts from inventory and
estimation of the volume of ice cream to be produced daily, then Purchasing of Ingredients
and raw materials needed. After purchasing, the production, packaging and freezing. Lastly,
the marketing or the selling of the product.

B. Monitoring and Evaluation

Pumpkin Sorbet will manufacture at least thirteen (13) gallons of ice cream per day. It takes
less than an hour to prepare the mixtures before freezing. The three (3) proponents divide
the work among themselves. The production hour will be done after classes so as not to
affect their studies. Since the shelf life is about 28 days, the possibility of producing for
advance demand is highly considered. It will supply four (4) Elementary Schools (gallons
each) and a Secondary School that will serve as its main market (4 gallons).

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IX. Sustainability

I. Financial Plan

Pumpkin Sorbet will need at least PhP 90,000.00 to start its operation in the market. This will
be coming from the investments of the students who are willing to be involved in entrepreneurial
practice like this. Also, since two of the proponents are Club Presidents and the other one is MBHS
Chorale Leader, they may combine their talents to conduct fund raising activities to increase the
capital investment of the business.

Table 3
Monthly Expenses of Pumpkin Sorbet
Product/Service Unit Price Quantity Total
Fixed Cost of Pumpkin Sorbet:
Rental PhP1,000.00 1 month PhP 1,000.00
Salaries 5,000.00 3 crews 15,000.00
Advertising 1,000.00 1 month 1,000.00
DepreciationAccount-Freezer(Small) 13,000.00 1 Freezer 1,300.00
Depreciation Account- Blender 770.00 2 Blenders 140.00
Depreciation Account- Chairs and
1,800/set 2 sets 300.00
Tables
DepreciationAccount-Toolsand 2 set of tools &
900.00 180.00
Utensils utensils
Utility and Sanitation 1,500.00 1 month 1,500.00
PhP
(A)Total Fixed Cost
20,420.00
Variable Cost:
Raw Materials:
Plastic Spoons 25.00 66 packs 1,650.00
Packaging (Plastic Cups) 50.00/pack 66 packs 3,300.00
All Purpose Cream 38.50 572 tetra packs 22,022.00
Condensed Milk 36.50 286 cans 10,439.00
Alsa Gulaman 39.50 143 boxes 5648.50
Cassava Flour 25 1.5 kilo 37.50
Powdered Milk 41.50 57 packs 2,365.50
Vanilla Essence 14.00 95 bottles 1,330.00
Cheese 23.50 95 bar 2,232.50
Electricity 1,000.00 1 month 800.00
Communication Bills 800.00 1 month 600.00
Water Supply 600.00 1 month 400.00
Transportation 300.00 1 month 250.00
Miscellaneous 1,500.00 1 month 500.00
PhP
(B) Total Variable Cost
51,575.00
PhP
(A+B) Total Cost of Production
71,995.00

Table 3 shows the variable and fixed cost in the operation of Pumpkin Sorbet. This
will serveas basis for computing the breakeven point sales price and volume. Based on the total FC
& VC, the business is capable of producing 286 gallons per month.

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 Table 4
PROJECTED REVENUE
Projected
Ice Projected
Volume (in Daily Monthly Yearly Projected
Cream Costing Volume
cups) Revenue Revenue Revenue
Flavour
Daily Monthly
C-5
M-2 PhP
Pumpkin 530 PhP 3,710.00 11660 PhP 979,440.00
81,620.00
SP-7

LEGEND:
Cost – C Mark-
up - M
Sales price – SP

Table 5
MONTHLY PROJECTED COST & REVENUE
Jan Feb Mar Apr May Jun
81,620.0
Revenue 0 81,620.00 81,620.00 81,620.00 81,620.00 81,620.00
71,995.0
Cost 0 71,995.00 71,995.00 71,995.00 71,995.00 71,995.00
Projected
9,625.00 9,625.00 9,625.00 9,625.00 9,625.00 9,625.00
Net Profit

Jul Aug Sep Oct Nov Dec Total

81,620.00 81,620.00 81,620.00 81,620.00 81,620.00 PhP 979,440.00
81,620.00
71,995.00 71,995.00 71,995.00 71,995.00 71,995.00 71,995.00 PhP 863,940.00
9,625.00 9,625.00 9,625.00 9,625.00 9,625.00 9,625.00 PhP 283,500.00

Break-Even Guide
Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)
When TR is > then FC and VC means the business is earning profit. When TR is <
then the FC + VC means the business is losing.
When TR = then FC + VC, the business is break-even.

Table 5 shows the monthly projected cost & revenue. As

shown, the business projected Php 979,440.00 gross sales for a year which is
greater than the cost at Php 863,940.00. thus, a net annual profit of Php
283,500.00. This is 32.81%% of the total cost.

14
Here is a set of criteria which will guide you in evaluating the business plan of your
classmate.

RUBRICS FOR BUSINESS PLAN PAPER EVALUATION

Description Rubric Rating

10 8 6 4
Executive Summary

Personal Details
I. Names & Brief Biography
II. Name of Adviser/s & BriefBiography
Overview of the Business
I. Name of the Business
II. Description of the Business Model
III. Statement of Vision, Mission, and Values
Business Plan Proper
I. The Problem/Need
A. Description of the exactproblem/need
addressed
B. Reasons/rationale why the problem/ need
must be addressed by the business
C. Descriptions on how the business has
solved the problem/need
II. Statement of Vision, Mission , and Values
A. Vision
Description/statement of what the proponent
sees if the problem/ need are solved.
B. Mission
Clear description of goals and objectives that
present practical steps to achieve the vision.
C. Clear statement of values critical to the
culture, integrity and activities of the business
III. The Marketing Plan
A. Research & Analysis
1. Description of the Target Market
2. Market Size
3. Competition/Market Share
4. Market Trends
B. Marketing Strategies
1. How the product/service be introduced
in the market?
2. How will the customers be reached and
served?
3. How will the investors be served?
4. Description of the business ownership,
roles of the partners.
5. Value Added Features

15
 6. Location of the business
IV. Production and Technical Plan
A. Detailed description of products/services
B. Operating Strategies
1. Description/Illustration of production
model
2. Detailed description of raw material,
suppliers, transportation needed and
how these will be accessed.
3. Details/data presented on how the
Products/services will be further developed
and the help needed and the agency or
company who can do it.
C. Critical Risks
a. Data on existing competitors
b. Statement on how the proposed business
is different from the others
c. Description/Illustration of the proposed
business' competitive strategy
d. Partners are identified, their roles, and added
value to maximizeimpact.
e. Detailed description of the risks and
opportunities (SWOT Analysis)
f. Description on how the business would
capitalize to prevent the risks.
V. Organizational/Management Plan
A. Members of the team
B. Team's contribution to the business
C. Others who can be part of the team
VI. Operational Plan
A. Detailed description on how the business will
be implemented.
a. Assignment of tasks
b. Schedules of deliverables
c. Data of necessary resources
d.Description/Illustrationofoperational model
and work flow
f. Description of business back progress and
division of works
g. Data on estimates of the business
operations
B. Monitoring and Evaluation
a. Statement of outcome the business will
achieve based on targets
b. Descriptions/Illustrations on how you will
monitor achievement
c. Statement of performance targets
d. Time line on when the targets will be

16
 achieved
Sustainability
I. Financial Plan
(This includes strategies for fund raising.)
A. Soundness of the average investment needed
B. Data/Scheduled of the specific investments
needed in 1 - 2 years
C. Percentage share on investments/capital of
each member of the proponents
D. Detailed description on how funds will be raised
to start the business
E. Data/Statement on how many years the
business will earn profit
II. Social Impact
A. Statement of the business' long-term desired
outcomes
B. Statement of the social impact generated from
each of the business activities
C. Statement/data on the benefit and impact of the business
to the community

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ACTIVITY:
A. based on the given example of a business plan with its major components,
formulate one question per component to test if a business plan meets a
given standard using the rubric.

B. Now after you have formulated your questions, let it be validated by your
teacher which you may use in the evaluation of your classmate’s business
plan.

LET US REMEMBER

Business Plan is a blueprint to guide your business policies,

operation and strategies. It details the past, present and forecasted
performance of your business.

LET US APPLY WHAT YOU HAVE LEARNED

Being an entrepreneur, you must have an effective business

plan. You should follow the steps in preparing a business so that
the data must be accurate and adequate. This will
help you to choose the appropriate and effective strategies to ensure
success in your business venture.

ACTIVITY: Think of a simple business you want to engage in. Make a

sample business plan of that business using the format below:

Business Name :
Location :
Name of Owner :

Introduction :

is a registered business engaged in

owned by .

Business goals are as follows:

a. Theoperationstartedon
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 islocated 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)

19
Summary of Section One

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.

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)

TR represents income while TC represents expenses of the enterprise.

When TR is greater than TC, there is profit. But when TR equals TC it is break
even. There is no profit, nor loss.

5. Income Projection (Profit-Loss Statement)

a. Detailedbymonth(forthefirstyear)
b. Detailed by quarter (for the 2nd, 3rd, 4th, 5th)

20
HOW MUCH HAVE YOU LEARNED?

POST TEST

Direction: Select the letter of the best answer and write it on your quiz
notebook.
1. Description of the target market is formed in the part
of the business plan.
a. Marketing Plan
b. Marketing Strategies
c. Operating Strategies
d. Production Strategies
2. Detailed description of products or services is in what part of the
business plan?
a. Marketing plan
b. Production and technical plan
c. Operation plan
d. Organization and management
3. Which part of the business plan describes how the business has solved the
problems?
a. Statement of vision
b. The marketing plan
c. The problem need
d. Production technical plan
4. Which part of the business plan presents the data on how the
products/service will be further developed.
a. Financial Plan
b. Marketing Plan
c. Production Plan
d. Operation and technical Plan
5. What part of the business plan can present a clear statement of values
critical to culture, integrity and activities of the business?
a. Marketing plan
b. Production plan
c. Operational plan
d. Statement of vision, mission and values

21
RESOURCES

- learning guide
- business plan
- assessment tool

REFERENCES

Adams, Bob, Small Business start – Up, Adams Media Corporation, USA 1996

Peters, Hisrich, Entrepreneurship, MgGraw Hill Book Co. Singapore 1999

Rojo, Luz V. et.al Business Management, Adriana pubishing Co. INC. Manila. 2003

Pumpkin Sorbet, Cabantog, Levy Jr., Rivamonte Gilvar, Bautista, Jayvee, A

Business Plan presented to the Board of Judges, National Student
Technologists and Entrepreneurs of the Philippines, Business Planning
Competition 2007, Davao City, Philippines, November 21, 2007

22
23
Here is a set of criteria which will guide you in evaluating the business plan of your
classmate.

RUBRICS FOR BUSINESS PLAN PAPER EVALUATION

Description Rubric Rating

10 8 6 4
Executive Summary

Personal Details
I. Names & Brief Biography
II. Name of Adviser/s & BriefBiography
Overview of the Business
I. Name of the Business
II. Description of the Business Model
III. Statement of Vision, Mission, and Values
Business Plan Proper
I. The Problem/Need
A. Description of the exactproblem/need
addressed
B. Reasons/rationale why the problem/ need
must be addressed by the business
C. Descriptions on how the business has
solved the problem/need
II. Statement of Vision, Mission , and Values
A. Vision
Description/statement of what the proponent
sees if the problem/ need are solved.
B. Mission
Clear description of goals and objectives that
present practical steps to achieve the vision.
C. Clear statement of values critical to the
culture, integrity and activities of the business
III. The Marketing Plan
A. Research & Analysis
1. Description of the Target Market
2. Market Size
3. Competition/Market Share
4. Market Trends
B. Marketing Strategies
1. How the product/service be introduced
in the market?
2. How will the customers be reached and
served?
3. How will the investors be served?
4. Description of the business ownership,
roles of the partners.
5. Value Added Features

24
 6. Location of the business
IV. Production and Technical Plan
A. Detailed description of products/services
B. Operating Strategies
1. Description/Illustration of production
model
2. Detailed description of raw material,
suppliers, transportation needed and
how these will be accessed.
3. Details/data presented on how the
Products/services will be further developed
and the help needed and the agency or
company who can do it.
C. Critical Risks
a. Data on existing competitors
b. Statement on how the proposed business
is different from the others
c. Description/Illustration of the proposed
business' competitive strategy
d. Partners are identified, their roles, and added
value to maximizeimpact.
e. Detailed description of the risks and
opportunities (SWOT Analysis)
f. Description on how the business would
capitalize to prevent the risks.
V. Organizational/Management Plan
A. Members of the team
B. Team's contribution to the business
C. Others who can be part of the team
VI. Operational Plan
A. Detailed description on how the business will
be implemented.
a. Assignment of tasks
b. Schedules of deliverables
c. Data of necessary resources
d.Description/Illustrationofoperational model
and work flow
f. Description of business back progress and
division of works
g. Data on estimates of the business
operations
B. Monitoring and Evaluation
a. Statement of outcome the business will
achieve based on targets
b. Descriptions/Illustrations on how you will
monitor achievement
c. Statement of performance targets
d. Time line on when the targets will be

25
 achieved
Sustainability
I. Financial Plan
(This includes strategies for fund raising.)
A. Soundness of the average investment needed
B. Data/Scheduled of the specific investments
needed in 1 - 2 years
C. Percentage share on investments/capital of
each member of the proponents
D. Detailed description on how funds will be raised
to start the business
E. Data/Statement on how many years the
business will earn profit
II. Social Impact
A. Statement of the business' long-term desired
outcomes
B. Statement of the social impact generated from
each of the business activities
C. Statement/data on the benefit and impact of the business
to the community

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ACTIVITY:
C. based on the given example of a business plan with its major components,
formulate one question per component to test if a business plan meets a
given standard using the rubric.

D. Now after you have formulated your questions, let it be validated by your
teacher which you may use in the evaluation of your classmate’s business
plan.

LET US REMEMBER

Business Plan is a blueprint to guide your business policies,

operation and strategies. It details the past, present and forecasted
performance of your business.

LET US APPLY WHAT YOU HAVE LEARNED

Being an entrepreneur, you must have an effective business

plan. You should follow the steps in preparing a business so that
the data must be accurate and adequate. This will
help you to choose the appropriate and effective strategies to ensure
success in your business venture.

ACTIVITY: Think of a simple business you want to engage in. Make a

sample business plan of that business using the format below:

Business Name :
Location :
Name of Owner :

Introduction :

is a registered business engaged in

owned by .

Business goals are as follows:

d. Theoperationstartedon
e. The location could be reached by
f. The business could be expanded by

27
 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 islocated 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)

28
Summary of Section One

Section II: Financial Data

6. Sources and application of funding:

Secure financial assistance from

For the following purposes

Using the following collaterals

7. Capital Equipment List

The capital and equipment lists are the following:

Briefly describe the equipment and their uses. Include

processes employed in the production)

8. 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.

9. 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)

TR represents income while TC represents expenses of the enterprise.

When TR is greater than TC, there is profit. But when TR equals TC it is break
even. There is no profit, nor loss.

10. Income Projection (Profit-Loss Statement)

a. Detailedbymonth(forthefirstyear)
b. Detailed by quarter (for the 2nd, 3rd, 4th, 5th)

29
HOW MUCH HAVE YOU LEARNED?

POST TEST

Direction: Select the letter of the best answer and write it on your quiz
notebook.
6. Description of the target market is formed in the part
of the business plan.
a. Marketing Plan
b. Marketing Strategies
c. Operating Strategies
d. Production Strategies
7. Detailed description of products or services is in what part of the
business plan?
a. Marketing plan
b. Production and technical plan
c. Operation plan
d. Organization and management
8. Which part of the business plan describes how the business has solved the
problems?
a. Statement of vision
b. The marketing plan
c. The problem need
d. Production technical plan
9. Which part of the business plan presents the data on how the
products/service will be further developed.
a. Financial Plan
b. Marketing Plan
c. Production Plan
d. Operation and technical Plan
10. What part of the business plan can present a clear statement of values
critical to culture, integrity and activities of the business?
a. Marketing plan
b. Production plan
c. Operational plan
d. Statement of vision, mission and values

30
RESOURCES

- learning guide
- business plan
- assessment tool

REFERENCES

Adams, Bob, Small Business start – Up, Adams Media Corporation, USA 1996

Peters, Hisrich, Entrepreneurship, MgGraw Hill Book Co. Singapore 1999

Rojo, Luz V. et.al Business Management, Adriana pubishing Co. INC. Manila. 2003

Pumpkin Sorbet, Cabantog, Levy Jr., Rivamonte Gilvar, Bautista, Jayvee, A

Business Plan presented to the Board of Judges, National Student
Technologists and Entrepreneurs of the Philippines, Business Planning
Competition 2007, Davao City, Philippines, November 21, 2007

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