Republic of the Philippines

Department of Education
Region IVA- CALABARZON
SCHOOLS DIVISION OFFICE OF LAGUNA
District of Los Bańos
BN Calara Integrated National High School
Brgy. Anos Los Bańos, Laguna

Grade Level: GRADE 12 Subject: Quarter 2, Week

Entrepreneurship 5-9
Name: Teacher: Mr. Garry Date:
D. Punzalan

Introduction
This activity sheet (AS) was designed to provide you with a meaningful opportunities for guided
and independent learning at your own pace and time. You will be enabled to process the contents
of the learning resource while being an active learner.

1. Implement the business plan

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.
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 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
9. 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

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 ➢ 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.

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Business Plan Format

I. Introduction
- Name of the business
- Vision, Mission and Business Objectives
- Background and description of the business

II. Product Description

- Explains what a product is and why it's worth purchasing. The purpose of
a product description is to supply customers with important information
about the features and benefits of the product so they're compelled to buy

III. Industry Analysis

- Consists of three major elements: the underlying forces at work in the industry;
the overall attractiveness of the industry; and the critical factors that
determine a company's success within the industry

IV. Competition Analysis

- Assessing and analyzing the comparative strengths and weaknesses
of competitors; may include their current and potential product and service
development and marketing strategies

V. Marketing Plan
- Explains how you're going to get your customers to buy your products or
services. The marketing plan, then, will include sections detailing your:
Products and services and your unique selling proposition (USP)

VI. Operations Plan

- Detailed plan that provides a clear picture of how a team, section or
department will contribute to the achievement of the organization's goals.
The operational plan maps out the day-to-day tasks required to run
a business and cover

VII. The Budget

- Overview of your business' finances. It outlines key information on both the
current state of your finances (including income and expenses) and your long-
term financial goals

VIII. Financial Plan

- Created by gathering all the components of the business and expressing them
in numbers – both revenue and start-up expenses. Every business plan needs
a cash flow projection. The rest of the plan tells the story of the business and
how the company will execute that plan

You may also look for other resources for additional information regarding the parts of the
business plan.

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Business Plan Rubric

Criteria 4 3 2 1 0
INTRODUCTION
- Name of the business
- Vision, Mission and Business Objectives
- Background and description of the business
PRODUCT DESCRIPTION
- Explains what a product is and why it's worth purchasing. The
purpose of a product description is to supply customers with
important information about the features and benefits of the product
so they're compelled to buy
INDUSTRY ANALYSIS
- Consists of three major elements: the underlying forces at work in
the industry; the overall attractiveness of the industry; and the critical
factors that determine a company's success within the industry
Competition Analysis
- Assessing and analyzing the comparative strengths and weaknesses
of competitors; may include their current and potential product and
service development and marketing strategies
MARKETING PLAN
- Explains how you're going to get your customers to buy your
products or services. The marketing plan, then, will include sections
detailing your: Products and services and your unique selling
proposition (USP)
OPERATIONS PLAN
- Detailed plan that provides a clear picture of how a team, section or
department will contribute to the achievement of the organization's
goals. The operational plan maps out the day-to-day tasks required to
run a business and cover
THE BUDGET
- Overview of your business' finances. It outlines key information on
both the current state of your finances (including income and
expenses) and your long-term financial goals
FINANCIAL PLAN
- Created by gathering all the components of the business and
expressing them in numbers – both revenue and start-up expenses.
Every business plan needs a cash flow projection. The rest of the plan
tells the story of the business and how the company will execute that
plan

RUBRIC SCORE
Expectations exceeded 4

Expectations met 3
Guidelines met 2
Guidelines somewhat met 1