UNIT 11: LESSON 1 BUSINESS CONCEPT
AND MODEL should identify key partners who will
Business Concept – it is a foundational idea that
describe the reason
IMPORTANT ELEMENTS OF BUSINESS
CONCEPT
 Features – describe the specification of
the product or service.
 Benefits – discuss the solution the
business can provide.
Business Model – a conceptual structure that
explains how the business operates and intend to
achieve its goal.
TYPES OF BUSINESS MODEL
 Manufacturing – transforms raw
materials into a finished product.
 Distributorship – purchases products
from manufacturers and sells them to the
retailers or the public.
 Retail – selling directly to the public after
buying the products from a distributor.
 Franchise – engages in using the parent
business model instead of creating a new
product.
 Brick-and-Mortar – deal with the
customers personally an office, shop, or
store that the business owns or rents.
 eCommerce – it sells products through a
web store on the internet.
 Bricks-and-Clicks – it allows the
customers to place an order online and
pick up the items on the physical store.
ELEMENTS OF A STRONG BUSINESS MODEL
 Specific Market – narrow down the
market into two or three detailed target
market groups.
 Business Process – determine the key
business activities by identifying the core
aspect of the business offerings.
 Key Business Resources – record
essential business resources to ensure
that the business model is adequately
prepared to sustain the needs of the
organization
 Strong Value Proposition – establishes
what the business offers and determines
why the business is better than its
competitors.
 Key Business Partner – the entrepreneur
contribute to the ability of the business to
serve customers.
 Demand Generation Strategy – the
entrepreneur needs a strategy that builds
the interest of consumers and that is
designed to close sales.
UNIT 11: BUSINESS MODEL
LESSON 2: BUSINESS VISION, MISSION,
GOALS AND PERFORMANCE OBJECTIVES
Vision Statement – it is a declaration of what the
business wants to achieve and where it wants to
be in the future.
CHARACTERISTICS OF VISION STATEMENT
1. Directional – it describes the direction
where the business wants to go and
presents plan how to move forward in the
future.
2. Focused – is specific so that the
entrepreneurs are properly guided on what
to do.
3. Flexible – it allows entrepreneurs to
change based on situations in the market,
technological advancements, and
customer preferences.
4. Feasible – realistic and achievable
5. Desirable – is clear on its reasons why
the business serves its customers’ interest
in the long run.
6. Easy to Communicate – is articulated
and easy to understand. It can be
simplified into a powerful slogan.
Mission Statement – articulates the purpose of
the business. /today
ELEMENTS OF MISSION STATEMENT
1. Purpose – should explain why the
business exist
2. Strategy – describes the competencies of
the business and its method of competing
with other organizations.
3. Policies and Standard of Behavior –
should be transformed into every actions.
4. Values – the beliefs of the people who
work in the business.
 TYPES OF BUSINESS GOAL  Bookkeeping is considered important
because it gives businesses a reliable
 Short-Term – the plans for the business
and accurate measure of their
in the near future.
performance.
 Long-Term – the plans for the business
wants to do further in the future.
2 TYPES OF BOOKKEEPING

Performance Objectives – refers to the target of 1. Single-Entry Bookkeeping – it follows

the business that may be set on a quarterly, semi- the cash basis of accounting by which
annual, or yearly basis. cash receipts and payments are the
primary information sought to be recorded.
KEY PERFORMANCE OBJECTIVE 2. Double-Entry Bookkeeping – a
1. Quality – an important performance comprehensive accounting system that
objective because it presents the visual ensures the accounting equation remains
sign of what the business does. balanced after each financial transactions.
2. Speed – refers to the turnover time of
customers for ordering a product or
service up to the time they receive it. LESSON 2: DOUBLE-ENTRY BOOKKEEPING
3. Dependability – it means that customers AND THE BALANCE SHEET
can rely on what the business has
Double-Entry Bookkeeping – it is a fundamental
promised.
concept in the modern approach in accounting
4. Flexibility – it means changing operations
and bookkeeping that states that all financial
to match a customer requirement.
transactions have equal and opposite effects
5. Cost – directly competes on rates.
in two different accounts – the debit (DR) and
– the lower the production cost of a
credit (CR) side.
business, the lower the prices of products.
This type of bookkeeping follows the equation of
Assets = Liabilities + Equity.
UNIT 14: FINANCIAL
ACCOUNTS UNDER DOUBLE-ENTRY SYSTEM
LESSON 1: BOOKKEEPING
ASSETS – list of items that the business owns
Bookkeeping – process that involves the daily
or controls for the main purpose of producing
recording of a business or company’s financial
income.
transactions.
Ex: Cash, Property, Equipment, Vehicle
ESSENTIAL TRANSACTIONS
LIABILITIES – the amount of money that a
1. Customer/Client Invoice – to determine
business owes to its creditors.
whether payments have been made on
time or if they still have outstanding Ex. Bank Loans, Accounts Payables, Credit
balances. Cards.
2. Payroll – an important bookkeeping task
that must be monitored on a weekly or
monthly basis, depending on the nature of
the business.
3. Payments to Suppliers – helps in
preserving the reputation and overall
credibility of the business.
4. Bank Accounts – it helps in tracking the
number of cash withdrawals that were
already made.
PURPOSE OF BOOKKEEPING

 To create and keep a record of financial

transactions that can be summed up for
different uses.