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STUDENT’S EDUCATIONAL PACKET

Entrepreneurship
Grade 12

2nd Quarter - Week Fourteen

Business Implementation
OBJECTIVE: After this lesson, the students are able to:
a. Determine the key factors in business implementation, and
b. Implement the business plan.
INTRODUCTION:

The personal purpose of entrepreneur is his or her personal mission.

Entrepreneur must be very clear about the purpose in establishing the enterprise.
Whether it is for generating profits or feeding the family, making a difference in the
industry or actualizing the self, the purpose must be compelling enough to motivate the
entrepreneur.

The enterprise must state its mission statement clearly for:

 The sake of the customers being wooed;

 The investors who need to know what they are getting into;
 The financiers evaluating the enterprise; and
 The government functionaries who must regulate the activities of
industries and businesses.

TASK 1:
I. Rearrange the Jumbled Letters to form the correct terms.

1. SIENUBSS- it is an organization or enterprising entity

engaged in commercial, industrial, or professional activities.

2. REMUSTOC- is an individual or business that

purchases another company’s goods or services.

3. PETRERENRUNE- A person who organizes and

operates a business or businesses, taking on greater than
normal
financial risk in order to do so.
 4. TEAMKR- is a place where two parties can gather to
facilitate the exchange of goods and services

5. POMACYN- it is a legal entity formed by a group of

individuals to engage in and operate a business – commercial or
industrial.

DISCUSSION:
Introduction to Business Implementation

A Very Good Business Plan

The next step for the entrepreneur is to have a very good business plan.
It is a wise thing to do in order to chart the course of the business properly and
to focus the efforts of the entrepreneur.
The purposes of the business plan are:
1. Entice partners, investors, and bankers to fund a business venture.
2. Communicate what the enterprise is all about, what market it wants to
serve.
3. Show what financial returns it could muster.

The business plan should contain important information about the following:
 The business itself;
 The organizers;
 The management and technical people;
 The financial structure;
 Its market potential;
 Its target market;
 Its projected sales, expenses, and profits; and
 Its probable risks.
The business plan should begin with business concept and the vision for
the enterprise in the next three to five years.
It should proceed to an enumeration of business objectives, key result areas,
and performance indicator. An overall enterprise strategy should then be
articulated to show how the performance could be attained.
Next, the business plan should contain an executive summary of the following:
1. The organizers and the key people behind the nosiness and why these
people have the resources, talents, skills, and technology to achieve
success;
2. The market being targeted and why there is enough market potential to
justify the business;
3. How the business will be operated and organized, including all
outsourcing, subcontracting, franchising, and licensing agreements;
4. The products or services to be offered and why they are right for the
market;
5. The investment capital required for the business and what exactly it would
be used for;
6. The technology, the technical expertise, the equipment, and material
suppliers to be utilized;
 7. The capital structure (short and long term debt, stockholders’ equity) of
the business;
8. The operating budget, financial projections (income statement, balance
sheet, cash flow), and return on investment prospects; and

The risks in the business and the contingency measures to counterpart them.
Organizing and Structuring the Enterprise
The Business Plan must be able to estimate the capital required by the
enterprise. The capital required would be dictated by the investment in the
assets of the enterprise. These assets are composed of the following:
1. The current assets, which are short-lived assets. They are composed
of cash, inventory, accounts receivables, and other current assets.
2. The long-lived or fixed assets. They are composed of property, plant,
and equipment.
3. The other assets. They are composed of organizational and pre-
operating expenses.
interest rate, therefore, is the obvious choice of the manager when
asked to make a decision.

The assets of the enterprise are financed by its liabilities. These liabilities
are composed of:
 Current liabilities such as suppliers’ credit and other short-term credit;
 Long term debt; and
 Owner’s equity

 Sole proprietorship
The simplest and easiest enterprise to organize. The owner or the
entrepreneur has sole control over the enterprise. He or she reaps all the
profits and, also, all the losses. But he or she will also incur all the risk.

The following are clearances that must be obtained to secure a mayor’s

permit or municipal license before they can operate in a locality.
 Barangay clearance
 Fire safety clearance
 Certificate of electrical inspection
 Certificate of occupancy
 Department of Trade and Industry (DTI) certificate
 Lease contract if space is leased
 Locational clearance

There may be additional requirements depending on the type of business and

the ordinances issued by the concerned local government.
 Partnership
If two or more persons bind themselves into a contract to contribute
money, property, and expertise in a common venture with the intention of
dividing the profits among themselves, then they would have entered into
a partnership.

 General partnership
Is composed of partners who are liable individually and collectively to all
those who have claims against them.
  A limited partnership
Consist of partners who have limited liabilities while others in the
partnership have unlimited liabilities. A limited partner is not personally
liable for all the obligations of the partnership beyond his or her prorated
capital contribution to the partnership.

The partnership should obtain all the required government clearances,

permits, and licenses. It should get:
 A bank certificate of deposit on the money contributions of the partners;
and
 The approval for its partnership name form the Department of Trade and
Industry.

 Corporation
The third form of business organization. Like the partnership, the
corporation also has a separate legal personality quite distinct from the
investors who contributed money to the enterprise.

Four Types of Corporation

1. Stock Corporation. Issues capital stocks divided into shares (or
proportions of the total capital). The corporation is authorized to raise
capital that has a corresponding number of shares.
2. Non-Stock Non-Profit Corporation. Is organized to carry out a purpose
or purposes other than generating profits for investors. All the surpluses
(or profit equivalents) generated by the corporation are not distributed to
the funders in the form of dividends. Rather, they are plowed back into the
corporation or the foundation to contribute further to the attainment of its
mission.
3. Close Corporation. Has articles of incorporation that limit the ownership
of issued stocks to at most 20 persons. There are strict restrictions on the
transfer of stocks. The stocks cannot be listed in any stock exchange nor
can any public offering of shares be made.
4. Corporation Sole. It is a special form of corporation allowed by law,
usually associated with the clergy. The Corporation Sole is a trusteeship
that is set up for the purpose of administering and managing the affairs,
property, and temporalities of a church or group of clergy.

LET’S PRACTICE!
TASK 2:

Case Study

Read and Understand the Jollibee Business Concept and answer the
given questions below.

When Jollibee decided to challenge the giant McDonald’s in the market, it

brought the Filipino taste to hamburgers. For that matter, it introduced a lot of
Filipino dishes not traditionally sold in hamburger joints. Jollibee observed in
their market research that Filipino consumers smelled their burgers before
 eating them. The logic is obvious: the nose can smell a thousand aromas while
the tongue can only distinguish four tastes (sweet, sour, salty, and bitter).
Jollibee knew that good taste is a function of good smell. Their tag line,
“Langhap sarap” that roughly translates to “You can savor its good taste from its
great aroma,” says it all. Jollibee also came up with a child-friendly name and
an endearing mascot to accompany the name. Strategically, Jollibee decided to
locate two or three outlets to “surround” McDonalds. The rest is history.

1. What are the differentiated business concepts that Jollibee won the
hearts, minds, and wallets of Filipino Consumers? Do you think these
business concepts are effective in outgunning the giant McDonalds?
Explain your answer.
_

2. If you’re going to build your own Food Industry like Jollibee, what would
be your business concepts and why?

TASK 3: Reflect on the following:

1. If you were to set up a business venture, what would be your personal
purpose for doing so? What type of business would you set up? What
would be the mission of this enterprise? Craft a personal and an
enterprise mission statement.

2. What is your compelling business concept? What would be your vision for
your business five years after setting it up?

3. What name would you give to your business venture? What is the
significance of that name? Would it protect the image you desire for
your business?
 4. If you were to invite investors to your business, who would they be and
why? What are the possible sources of financing for your business
venture?

TASK 4:
COMPLETE THE SENTENCES: Choose the correct word or phrase from the box
to complete each sentence.

PARTNERSHIP CONTRACT

SYNTHESIZED FEARLESS FORECASTS

CAPITAL STRUCTURE FINANCIERS AND INVESTORS

SHARES GOOD NAME

ANGEL INVESTORS VISION

1. provide capital to entrepreneurs knowing that

there are risks involved. They may come in the form of senior relatives,
close friends, and professional equity investors.
2. A identifies the company very well. It
communicates what the company is all about and what its products are
all about.
3. The business plan should begin with the business concept and the
for the enterprise in the next three to five years.
4. For the investors, they should be given on
expected profits, dividends, and market values.
5. The financial statements must be in order to
capture both the upside and downside prospects of the business.
6. The way the financial package is designed is called
of the enterprise.
7. A is vested with its own legal personality quite distinct
and separate from its individual members.
8. In order to form a partnership, a binding must be signed
by all the partners.
9. The corporate form of business allows various combinations of funds to
be raised from .
10. Based on the submission of Articles of Incorporation to the Securities and
Exchange Commission, the corporation is authorized to raised capital
that has a corresponding number of .
EVALUATION:
A - Fill in the blanks to continue the given sentences below.

1. All the market research must be done and the desired customer segment
has been targeted. Likewise, when the final location has been chosen
and the new product has been designed and developed, then .

2. The enterprise begins to have its own life and may have a purpose
separate from the personal mission of the
entrepreneur maybe because
.

3. The entrepreneur must choose a very fitting name for the enterprise. A
good name identifies the company very well. The entrepreneur must think
long and hard about the name so that .

4. In livelihood undertakings or microenterprises, it is common for

entrepreneurs to embark on a business venture as a “lone wolf” not
needing the capital or expertise of others. At best, it may be .

5. The entrepreneur must flesh out, into more specific details, the
information that a good business plan must contain .

6. The business plan should proceed to an enumeration of business

objectives, key result areas, and performance indicators. These are
essential in terms of
.

7. For the government readers, the business plan should provide

compliance statements with all laws and regulatory provisions as an
important matter in
.

8. The sole proprietorship is mandated by law to register the business with the
.

9. The start-up corporation established by entrepreneur (and his or her

family or friends) should have .

10. If the team in a business is not fully equipped technically and

managerially, then .

B - True or False: Write True if the statement is correct, and False if it is incorrect.

1. According to Philippine law, the majority of the incorporators must not be

residents of the Philippines.
2. In sole proprietorship, there is no distinction between the owner and the
enterprise.
 3. Once the corporation is established, there is no limit to the number of
natural or juridical persons who can invest in the corporation.
4. After establishing the enterprise, the entrepreneur must meticulously
screen and hire men and women who foster the cause and share the
commitment of the enterprise.
5. A minimum of two persons can constitute a partnership. However, there is
a limit to the number of persons in a partnership.

SYNTHESIZE:
Implementation is the process of executing a plan or policy so that a concept
becomes a reality. To implement a plan properly, entrepreneurs should communicate clear
goals and expectations, and supply employees with the resources needed to help achieve the
plan.

ASSIGNMENT:
Define the following:
1. CASH FLOW - _________________________________________________________
2. FINANCIAL STATEMENT FORECAST - _____________________________________

References: SHS DepEd Learning Module: Writer – A. Gutierrez -TII, Diosdado Macapagal HS