SHS

Entrepreneurship
Module 5: Quarter 1 – Week 5
\Entrepreneurship

Grade 12 Module 5: Quarter 1 - Week 5

First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Jennilyn C. Lucas, T-I

Editor: SDO La Union, Learning Resource Quality Assurance Team
Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II
 Entrepreneurship
Module 5: Quarter 1 - Week 5
 Target

The entrepreneur’s desire to determine his business may be a visible idea yet it
must come into a process whether it is viable business option. It needs a thorough
analysis of opportunity evaluation. The entrepreneur who fails to examine his idea
because of his eagerness to plunge into the business world often discovers later that he
has more problems to solve and at times abandons the thought after spending his effort
and money.

In your previous lesson, you are through with determining the possible product/s
or service/s which will meet the need.

This learning material will provide you with information and activities which will
assist you to understand viability, profitability and customer requirements and the way
to screen proposed solutions based on the three categories.

After a thorough study on this learning material, you are expected to:

1. Screen the proposed solution/s based on viability, profitability, and customer

requirements. TLE_ICTAN11/12PC-Ia-1

Before going on, check how much you know about this topic. Answer the pretest on
the next page in a separate sheet of paper.

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 Jumpstart

For you to understand the lesson well, do the following

activities. Have fun and good luck!

Activity 1: READ ME! UNDERSTAND ME!

Direction: Read and understand carefully the succeeding text then answer the multiple
choice items below. Use a separate sheet for your answer.

The Starting Point of Conceiving the Idea of the Type of Business:

1. Conceiving a new product is a process of innovation and when this comes into
a reality, the product must be different from an existing product.

2. New product needs customer evaluation and this process needs exposure to
the target market as to its economic value. This new product must satisfy
customers’ needs and wants. It needs market exposure and public acceptance
before it could take off the ground.

3. The entrepreneur must find a new approach to win customer on his side if the
product or service is similar to what is existing in the community. The new
venture must be able to present a new alternative or different approach for
him to take off.

4. He must know the strengths and weaknesses of his competitor and thereby
devise a new system of promotion and advertising such as product discounts,
cash discounts, raffles, and other package of prizes. Emphasis should also
focus on good customer service.

1. Which of the following is a process of innovation?

A. Conceiving a new product
B. Customers’ needs and wants
C. Good customer service
D. Strengths and weaknesses of customers

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 2. “The product must vary from an existing product”. Which of the given choices
represents this statement?
A. AYZ Company and BLB Company sells trending clothes and apparels.
B. B & B Kitchenette offers highland recipes while Kusina ni Don Pedro
offers lowland recipes.
C. Tanachi Corporation and Lakandula Corporation vends cars and
motorcycles parts.
D. Gigamon Internet Café deals with repairing of defective cellphones while
Milagrosa Cellphone Repair Shop offers cellphone and laptop repairs.

3. Which of the following strategy is the best to win customer on your side if your
product or service is the same to what is existing in the market place?
A. Any products worth ₱1-₱500 are buy 1 take 1.
B. If they bought worth ₱500, they will be given 1 raffle coupon.
C. Free delivery if they purchased items worth ₱1,000.
D. If they purchased worth of ₱1,000 they will be given freebies.

4. How are you able to you expose your new product to your target market?
A. By giving free taste.
B. By answering queries.
C. By promoting using violence.
D. By handling customer complaints.

Activity 2: TRUE or FALSE

Direction: Read and analyze the statements below. Write TRUE if the statement is
correct and FALSE if the statement is wrong. Write your answer on a separate sheet of
paper.

1. Old product needs customer evaluation and exposure to the target market as to
its profitable value.

2. The entrepreneur must not find a different approach to win customer on his side
if the product or service is dissimilar to what is existing within the community.

3. As an entrepreneur, you should know the strength and weaknesses of your

competitor.

4. Emphasis should focus on good customer service.

5. The new product must not meet the essentials needs of customers.

6. The product must be the same with the existing product to attract more
customers.

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 Discover

Determining a Viable Business Idea

How do you verify your idea to work out whether your chosen businesses are
often successful and support you achieve your career goal as an entrepreneur? Here
are some processes to consider:

1. Research the market.

Search the web, visit libraries, and look for industry reports’ information
about costs, competition, the size and viability of your target market. Search for
blogs, magazines, trade journals, newspapers, and other media intended at your
potential customer base.

2. Determine if there’s a paying customer.

To have a successful business, you will certainly need to solve a problem
for a particular customer. But before resolving on an idea, identify who your
perfect customers are, what their income is, what their buying habits are, and
how they create purchasing decisions. You will get this information by conducting
surveys online, interviewing potential customers, and examining for existing data
on your demographic. Once you compile the outcomes, you will have a clearer
picture of your paying customer.

3. Solicit honest feedback.

Bounce your business idea off of your family, friends, and peers to obtain
some objective, real-world advice. Ask to prospective customers, local
storeowners, and even your competition (being careful not to bargain your idea)
to acquire their take on fair pricing for your services and what they presently pay
or charge for them.

4. Consider your marketing strategy.

Since you maybe have limited time and resources, you want to make sure
to get the most bang for your marketing bucks. Fortunately, many marketing
strategies these days are fairly inexpensive.

5. Evaluate the costs of your venture.

To make a sense of how many sales must be generated to hide your
expenses and eventually bring in some cash, you will need to know how much it
costs to run your business each month. The following may assist you assess to
answer those questions.

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  Cost of materials. How much will the cost of inventory, ingredients or
product components?

 Cost of labor. If you’re doing the work yourself, what is your time value?
If you’re paying an employee, subcontractor or freelancer to work, how
much time and money will it take that person to provide the product or
services?

 Overhead. A part of your daily business expenses, like phone, electricity,

rent, heat, insurance, water, accounting, legal, admin support and
marketing, should be reflected in your pricing.

 Pricing. Once you’ve calculated your costs, choose what you’re going to
charge your customers. Remember, you must cover your costs and earn a
profit on every sale or you will end up out of business quickly.

If you are doing the legwork, you will acquire better understanding whether you
have a viable idea to make a profitable business.
Most entrepreneurs turn up with a business idea, organize a business plan, raise
the needed capital (either investors or personal savings), then bring it to market and
hope to survive.

Here are some ways to guarantee success and profitability to start up a

business:

Ways to Ensure Success and Profitability in Starting a Business:

1. Start by identifying a customer you want to attend.

Imagine if you could spend all day with the people you enjoy the best. Who
would they be? Now, imagine if you could add worth to these people you care a
lot, enrich their lives, and get paid to do it!

For many of today’s most successful entrepreneurs, this is not a illusion

of their imagination. It is their reality because they begin by recognize the
customers they want to serve. You too can do it!

Begin by classifying the people you want to wake up every day and trade
your life to serve. This simple first phase will ensure you will feel fulfilled and
satisfied as you begin an intense process of launching your business.

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2. Exchange ideas to your customers.
Once you have identified your ideal customer, you have two options to
consider: you can guess what products or services they want or need, or you can
talk and ask them what they want. Seems like a clear choice, right?

The reality is that many businesses predict what their customers want.
This is the reason why most of them startups to fail. They do not know the needs
of their customers.

To set yourself apart, ask your customers with the goal of identifying a
problem that is profound and painful. Once you discover a pain that is
consistently shared among them, you know to take the next step.

3. Let your customers create your business.

Your customers are marketing geniuses, as they can exactly tell the
solution to solve their pain.

4. Presell your product.

Identify the way you should charge for your solution. Remember, your
customers are marketing geniuses. Ask them, “If I were to buy something like
this to market, how much would this be?” Then ask them to pay for it upfront.

You can offer incentives to them as a beta-user or founding member by

adding supplementary value to them. Here are some few ways to consider:

A. Giving an intimate access to you as the founder.

They will provide feedback on the development of the solution that
will help you both customized your needs.

B. Offer to lock this starting rate in for the life.

It is easy to detect customer’s interest. But this is not enough
validation to introduce your business. If they are willing to put their
money where their doorway is, then you have confirmed your business
and locked in a customer base.

5. Launch the business with sufficient funds.

Once you have pre-sold avail enough to cover your startup costs, you are
ready to take action and put up a business. This allows you to start with a tough
customer base that you can work closely with to guarantee the product is exactly
what they are looking for.

6. Create your MVP and let your customers develop it.

Your job is to get a minimum viable product (MVP) to your established
members. If you have done a good job setting opportunities, members are

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 expecting to give you feedback to enhance the product. Let them help you make
it better! You will end up with an improved product, and they will feel emotionally
secured to you and the solution.

7. Scale your business.

It is time to scale the business. Some ways can do this is by investing in
marketing and considering partnerships and joint ventures. You can assure
invest in these areas because you have a product that are created for your ideal
customers. This means you are not predicting it will work -- you know it will work
because your customers stated you so.

If you are ready into entrepreneurship, follow some steps to assure your
success and profitability.

Knowing Your Customer Needs or Achieving Customer Requirements

Though good your product or service is, the simple truth is that no-one will buy
it if they don't want or e they don't need it. You won't convince anyone that they want
or need to buy unless you clearly understand what it is your customers really want.

Knowing and understanding customer needs is main point of every successful

business, whether it sells directly to persons or other businesses. Once you have this
information, you can use it to attract potential and existing customers that buying from
you is in their top interests.

Why do your customers need you?

Every business needs a purpose for their customers to purchase from them and
not their competitors which is often called a Unique Sales Proposition (USP). Your USP
can be acknowledged by completing the phrase "Customers will buy from me because
my business is the only..."

Your USP can transform as your business or your market changes, and you can
have different USPs for various types of customer.

For Example:
 A stationery store could bargain a free same-day delivery service for its business
customers within an area - an effective USP for businesses that need fast
delivery.
 The same stationery store could bargain also a 5 percent discount to
businesses that spend more than ₱100,000 a month - this would be a USP for
cost-conscious customers.

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 All of these USPs can be effective because they are determined by what the
customer looks for when making decision to buy.

It is a better idea to review your USPs regularly. Consider asking your customers
why they purchased from you. This will convey you what they think your USP may differ
from what you think from your own USP.

It is also important to check continuously what your competition is doing.

Remember - your competitors are doing the same, make your own unique USP.

The Customer's Current Supplier

Chances are your prospective customer is already purchasing something the

same to your product or service from someone else. Before you can sell it, you need to
know the following:
 who the customer's current supplier is
 if the customer is satisfy with their current supplier
 if it can offer the customer any benefits - and, if so, what those benefits would
be.

The easiest way to identify a prospective customer's is find out what benefits they're
looking for, you view a better chance of being able to sell to them. The benefits may be
associated to amount or levels of service. Are there some benefits that your business
can offer better than those the prospective customer already receives? If there are, these
should form the foundation of any sales strategy you make. But before that, you need
to know first your prospective customer. Here are some tips:

1. Who they are. Find out your customers' demographic profile such as their
gender, age, marital status and occupation. If you sell to other industries, find
out the size and kind of business they are. For example, are they a small private
company or a mega corporate company?

2. What they do. If you sell a product directly to a customer, it is better to know
their occupations and interests. This will help you to have an understanding of
what their business is trying to achieve.

3. Why they buy. Knowing why customers buy a product or service can be easier
to identify their needs to the benefits your business can offer.

4. When they buy. Approaching a customer just at the time they want to buy, will
massively increase your chances of success.

5. How they buy. Some people prefer to online, while others prefer a face-to-face
meeting are some ways to purchase their product.

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 6. How much money they have. Business can be more successful if you can match
you’re offering to what you know your customer can afford.

7. What makes them feel good about buying. If you know what makes them
comfortable, you can serve them in the way they prefer.

8. What they expect of you. For example, do not disappoint customers expecting
reliable delivery from you, stand to gain repeat business.

9. What they think about you. Customers likely to buy more if they enjoy dealing
with you. And you can only solve problems if you know what they are.

10. What they think about your competitors. Know your customers view your
competition, you stand a better chance of continuing ahead of your rivals.

Explore

Here are some enrichment activities for you to work on to master and strengthen the
basic concepts you have learned from this lesson.

Assessment 1: DRAW ME!

What you need:

A4 size bond paper

Ruler

Pencil/pen

Any coloring materials

What you have to do:

1) If you are an entrepreneur, think of your own viable and profitable business to
start-up.
2) Copy the box on the next page including the title in an A4 size bond paper with
1-inch margin on all sides.

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 3) In the box, draw or illustrate your viable and profitable business applying the
tips that have been discussed.
4) Below the illustration, write a short explanation on choosing that business.
5) Make your output presentable and creative.

My Viable and Profitable Business

__________________________________________
__________________________________________
__________________________________________

Scoring Rubric for the Activity

Category 5 pts 4 pts 3 pts 2 pts

Very creative Shows many Some creative No creation
Creativity
illustration. creative ideas. ideas used. has been used.
Very neat and
Some untidy Many untidy Very careless
Neatness tidy
errors. errors. and untidy.
illustration.
Poster is
Poster is put Poster is not
Information is organized well
Well together okay organized and
well and easy but still a little
Organized but is difficult very difficult to
to understand. difficulty
to understand. understand.
understanding.
Exceptional
Good use of Average use of No use of new
use of new
Originality new ideas and new ideas and ideas and
ideas and
originality. originality. originality.
originality.

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Assessment 2: ASK ME! PRESENT ME!

Direction: Read the situation carefully. Answer the following requirements in each task
on the next page.

Becoming a boss is not an easy task on the part of every entrepreneur. They have
to consider a variety of business ideas to achieve their career goal. If you want to
become a boss, this activity will help you think a good business idea.

Tasks:
1. Copy the sample questionnaire in a separate sheet of paper.
2. Using the guide questions on the next page, interview at two (2) adult members
in your family/relatives with in your compound.
3. Write down their separate responses in each provided column.
4. Review each response. Below the questionnaire, write a summary and a
conclusion if your ideal business will meet your customer needs or requirements.

Questions Answers Answers

(Interviewer) (Interviewee 1) (Interviewee 2)
May I know your age, gender, marital status
and occupation?
What products or services give a big impact to
you?
Why do you buy that product or service?
When did you buy product or service?
How did you buy products? Is it thru online
or face-to-face interaction?
How much is your budget in buying product
or services?
What makes you feel good about buying?
What do you expect from your sellers?
What do you think about your sellers?
What are the promotions that you want most?

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SCORING RUBRIC FOR THE ACTIVITY

Category 4-5 points 2-3 points 0-1 point

One idea may not be
Writing is clear and Some ideas do not
Ideas relevant or somewhat
easy to understand. make sense.
confusing.
The composition has The composition
The composition
clear, creates interest, does not have a
Organization needs details to make
well-developed and clear beginning,
it interesting.
satisfying. middle, or end.
The composition has
The composition has The composition
a lot of powerful and
Word Choice some powerful and has no powerful
exciting words to
exciting words. and exciting words.
enhance the meaning.

Great job! You have understood the lesson. Are you now ready to study cases?

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 Deepen

Direction: Read the selection/story “Cutflower Business” and answer the questions on
the next page. Use a separate sheet for your answers.

Cutflower Business

Paula and Victoria are childhood friends. They were classmates in elementary
school in their hometown in Atimonan, Quezon. Their families separately own more
than twelve hectares of farmlands. As children, they grew roses in their own little
plots for their love of flowers.

After Paula got her B.S. in Commerce degree at St. Scholastica College of
Manila, she went back to Atominan, Quezon to try her luck in business. She found
her friend Victoria, who got a degree of Horticulture from the University of the
Philippines, attending to her blooming rose farm.

Paula’s farm is currently producing 80,000 dozens of roses annually and is

supplying an area as far north as Olongapo City. Paula persuaded her friend Victoria
to go into the cutflower business until they attended a seminar on cutflower
production. The speaker impressed on them the vast potential of exporting
cutflowers to China, Singapore, London, Australia, United States and Great Britain.

Paula and Victoria understood the opportunities of tapping the export market. It
would mean bringing in more dollars for the country and the employment it would
give to some people a help. These are in addition to the opportunity of making profits
and income both for the owner and employees.

Both are determined to go into exports but they are worried about the
funding and the organizational requirements of such business ventures. Managing
production alone is more than a man-sized job. They contend that the same is true
with purchasing, marketing and finance

1. Based on the case, what is the best criteria to consider in choosing a place?
.
________________________________________________________________________

2. What strategy is needed to be improved in order to attain profit and growth?

________________________________________________________________________

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 3. Based on your proposed solution in question 1 and 2, is it viable and profitable
if you pursue them?
________________________________________________________________________

4. If you follow your proposed criteria and strategy, can you meet your customer
requirements? Explain your answer.
________________________________________________________________________

SCORING RUBRIC FOR THE ACTIVITY

Category 4-5 points 2-3 points 0-1 point

One idea may not be
Writing is clear and Some ideas do not
Ideas relevant or somewhat
easy to understand. make sense.
confusing.
The composition has The composition
The composition
clear, creates interest, does not have a
Organization needs details to make
well-developed and clear beginning,
it interesting.
satisfying. middle, or end.
The composition has
The composition has The composition
a lot of powerful and
Word Choice some powerful and has no powerful
exciting words to
exciting words. and exciting words.
enhance the meaning.

Gauge

Direction: Read and analyze the situation below then answer the following questions.
Write your answers on a separate sheet of paper.

SITUATION:

Recently, the Mayor of the Municipality of Burgos, La Union had a business

meeting with all local organization/company managers and had discussed with them
the programs and projects of the invest in the municipality in line with its long term
target. The purpose of the said meeting is to attract investors to invest in the
municipality. One of the targets of the municipality is to become the center of tourism
and have something to do with strengthening tourism and agricultural industries.

As the organization/company manager, you are interested to respond to the

call of the Mayor to invest in the Municipality of Burgos, La Union. What potential
business would you propose? Give a short description of the nature of the business
and discuss how you will manage it. 15
 1. Identify the type of business that will be proposed.
______________________________________________________________________________
__________________________________________________________________

2. Give a narrative description of the nature of the business.

______________________________________________________________________________
__________________________________________________________________

3. Discuss how the business will be managed under each category.

A. Viability
______________________________________________________________________________
_________________________________________________________________

B. Profitability
________________________________________________________________________
________________________________________________________________________

C. Customer Requirements
________________________________________________________________________
________________________________________________________________________

SCORING RUBRIC FOR THE ACTIVITY

Category 4-5 points 2-3 points 0-1 point

One idea may not be
Writing is clear and Some ideas do not
Ideas relevant or somewhat
easy to understand. make sense.
confusing.
The composition has The composition
The composition
clear, creates interest, does not have a
Organization needs details to make
well-developed and clear beginning,
it interesting.
satisfying. middle, or end.
The composition has
The composition has The composition
a lot of powerful and
Word Choice some powerful and has no powerful
exciting words to
exciting words. and exciting words.
enhance the meaning.

Great job! You are done with this learning material.

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 17
Lesson: Viability, Profitability and Customer Requirements
Key Answers
Jumpstart
Activity 1: Multiple Choice
1. A
2. B
3. A
4. A
Activity 2: True or False
1. False
2. True
3. True
4. True
5. False
6. False
Explore
Assessment 1: Draw Me with Scoring Rubric
Assessment 2: Ask Me and Present Me with Scoring Rubric
Deepen
Activity 1: Case Study with Scoring Rubric
Gauge
Activity 1: Case Study with Scoring Rubric
References:
Printed Materials:

Acierto, Marife Agustin-. 2017. Entrepreneurship K to 12 Basic Education Curriculum

Senior High School – Applied Track Subject. Room 215 ICP Building, Cabildo St.,
Intramuros Manila: Unlimited Books Library Services & Publishing Inc.

Websites:

Wooda, Geoff. (2015, June 4). 7 Ways to Ensure Success and Profitability When
Starting a Business. https://www.entrepreneur.com/article/246593

Business Link UK. (2009). You’re your Customer’s Needs. Adapted by Info
entrepreneur. https://www.infoentrepreneurs.org/en/guides/know-your-
customers--needs/

Rivera, Christian. (2020, July 12). Strategic Planning and Business Development.
https://www.scribd.com/document/468883735/Chapter-5

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