Republic of the Philippines

Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

Quarter 4 – Module 5
Introduction of an Enterprise
Business Plan

ENTREPRENURSHI
P

Learning Activity Sheet #02

I. INTRODUCTORY CONCEPT
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

Once you are able to choose the best business opportunity to pursue and scan the market and
environment to ensure the viability of the business idea, you can now start planning for your
business enterprise. Being able to carefully plan for your business venture is a big step towards
the success of your business.
In this module, you will be re-introduced with the business plan, which you have learned
from your previous subjects. The business plan is a very important tool in making sure that you
plan and execute the best strategies for your business.
It is indeed very important to make a sensible plan before taking any actions, whether it be on a
personal or career aspect. What role does planning play when it comes to starting a business?
The Business Plan
A business plan is a written description of your business's future. Entrepreneur Asia
Pacific (n.d.) defines it as a written document describing the nature of the business, the sales
and marketing strategy, and the financial background, and containing a projected profit and
loss statement.
Business plans can help perform a number of tasks for those who write and read them.
They're used by investment-seeking entrepreneurs to convey their vision to potential investors.
They may also be used by firms that are trying to attract key employees, prospect for new
business, deal with suppliers or simply to understand how to manage their companies better.
So what's included in a business plan, and how do you put one together? Simply stated,
a business plan conveys your business goals, the strategies you'll use to meet them, potential
problems that may confront your business and ways to solve them, the organizational structure
of your business (including titles and responsibilities), and finally, the amount of capital
required to finance your venture and keep it going until it breaks even.
According to Entrepreneur Asia Pacific (n.d.), a good business plan follows generally
accepted guidelines for both form and content. There are three primary parts to a
business plan:
• The first is the business concept, where you discuss the industry, your business structure,
your particular product or service, and how you plan to make your business a success.
• The second is the marketplace section, in which you describe and analyze potential
customers:
who and where they are, what makes them buy and so on. Here, you also describe the
competition and how you'll position yourself to beat it.
• Finally, the financial section contains your income and cash flow statement, balance sheet
and other financial ratios, such as break-even analyses. This part may require help from your
accountant and a good spreadsheet software program.
Breaking these three major sections down even further, a business plan consists of seven
key components:
1. Executive summary
2. Business description
3. Market strategies
4. Competitive analysis
5. Design and development plan
6. Operations and management plan
7. Financial factors
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

In addition to these sections, a business plan should also have a cover, title page and table of
contents.
Why is a Business Plan Important?
Jared Lindzon (2019) stated that a well-written business plan is an important tool
because it gives entrepreneurs the ability to lay out their goals and track their progress as their
business begins to grow. Formulating a business plan should be the first thing done when
starting a new business. Business plans are also important for attracting investors so they can
determine if your business in on the right path and worth putting money into.
Lindzon (2019) said that business plans typically include detailed information that can
help improve the business’s chances of success, like a market analysis, competitive analysis,
customer segmentation, marketing, logistics and operations plans, cash flow projection and an
overall path to long-term growth.
Though it may sound tedious and time-consuming, business plans are critical to success.
To outline the importance of business plans, here are 10 reasons why you need one for your
small business.

1. To help you with critical decisions. Building a business plan allows you to
determine the answer to some of the most critical business decisions ahead of time.
Creating a robust business plan is a forcing function—you have to sit down and think
about major components of your business before you get started, like your marketing
strategy and what products you’ll sell. You answer many tough questions before they
arise. And thinking deeply about your core strategies can also help you understand
how those decisions will impact your broader strategy.
2. To iron out the kinks. Putting together a business plan requires entrepreneurs to
ask themselves a lot of hard questions and take the time to come up with well-
researched and insightful answers. Even if the document itself were to disappear as
soon as it’s completed, the practice of writing it helps to articulate your vision in
realistic terms and better determine if there are any gaps in your strategy.
3. To avoid the big mistakes. According to the Small Business Administration, only
about half of small businesses are still around to celebrate their fifth birthday. While
there are many reasons why small businesses fail, many of the most common are
purposefully addressed in business plans. However, the exercise of creating a business
plan can help you avoid these major mistakes. Whether it’s cash flow forecasts or a
product-market fit analysis, every piece of a business plan can help spot some of those
potentially critical mistakes before they arise.
4. To prove the viability of the business. Many businesses are created out of passion,
and while passion can be a great motivator, it’s not a great proof point. Planning out
exactly how you’re going to turn that vision into a successful business is perhaps the
most important step between concept and reality. Business plans can help you
confirm that your grand idea makes sound business sense.
5. To set better objectives and benchmarks. Without a business plan, objectives often
become arbitrary, without much rhyme or reason behind them. Having a business
plan can help make those benchmarks more intentional and consequential. They can
also help keep you accountable to your long-term vision and strategy, and gain
insights into how your strategy is (or isn’t) coming together over time.
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

6. To communicate objectives and benchmarks. Whether you’re managing a team of

100 or a team of two, you can’t always be there to make every decision yourself. Think
of the business plan like a substitute teacher, ready to answer questions anytime
there’s an absence. You and your staff can always consult the business plan to
understand the next steps in the event that they can’t get an answer from you directly.
Sharing your business plan with team members also helps ensure that all members
are aligned with what you’re doing, why, and share the same understanding of long-
term objectives.
7. To provide a guide for service providers. Small businesses typically employ
contractors, freelancers, and other professionals to help them with individual tasks
like accounting, marketing, legal assistance, and as consultants. Having a business
plan in place allows you to easily share relevant sections with those you rely on to
support the organization, while ensuring everyone is on the same page.
8. To secure financing. If you’re planning on pitching to venture capitalists, borrowing
from a bank, or are considering selling your company in the future, you’re likely going
to need a business plan. After all, anyone that’s interested in putting money into your
company is going to want to know it’s in good hands and that it’s viable in the long
run. Business plans are the most effective ways of proving that and are typically a
requirement for anyone seeking outside financing.
9. To better understand the broader landscape. No business is an island, and while you
might have a strong handle on everything happening under your own roof, it’s equally important to
understand the market terrain as well. Writing a business plan can go a long way in helping you
better understand your competition and the market you’re operating in more broadly, illuminate
consumer trends and preferences, potential disruptions and other insights that aren’t
always plainly visible.
10. To reduce risk. Entrepreneurship is a risky business, but that risk becomes
significantly more manageable once tested against a well-crafted business plan. Drawing up
revenue and expense projections, devising logistics and operational plans, and understanding
the market and competitive landscape can all help reduce the risk factor from an inherently
precarious way to make a living. Having a business plan allows you to leave less up to chance,
make better decisions, and enjoy the clearest possible view of the future of your company.
Questions Every Business Plan Should Answer
Keira Abbamonte (2018) stated that as a rule, business plans are very tactical. They
outline clear steps and goals to take your business from idea to growing company. A business
plan should aim, more broadly, to address a handful of overarching questions. These are the
questions you need answers to and the answers that investors, lenders, and other readers of
your business plan are looking for.

• Why are you in business? Talk about your mission. What drives you and the business—
beyond revenue and profits?
• What does the market look like? Discuss who your potential customers are, and what
pain points they have that only you can solve. Analyze your competition— their business,
their performance, and their weaknesses. How does your business idea fit into the
market in relation to them?
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

• What will you do? Detail how your business is different from what’s out there. Explain
what you’ll offer, how you’ll solve customer problems, and how the market will respond to
your business. How will the industry change when you enter it?
• How will you grow? This is where you’ll specify financials, projections, and where you
expect the company to be in the future. You should also include plans for how the
business will scale. Who will you need to hire and what will their responsibilities entail?
• What do you need? Finish with your ask. Talk about what you need (financial
investment, a loan, a partnership, etc.), how you’ll use it, and what you’re offering in
return (equity, collateral, etc.). Where will that investment take your business?
Answering those five questions helps to clarify what your business is and why you and
your company are uniquely qualified to take the current market by storm. That helps potential
investors, partners, and employees understand the value of working with you. Whether you’re
asking the audience for time, money, effort, or something else, they’re more likely to buy into
your venture if there’s a clear-cut path from plan to operations to profit. Answering the
questions above helps draw that path and answer the most important of all questions: What’s in
it for me?

II. ACTIVITIES
TASK #01 THE 3 PRIMARY PARTS OF A BUSINESS PLAN

Below are elements that can be seen on a business plan. Identify under which part of a
business plan it is under. Write A if it is under the Business Concept, B if it is under the
Marketplace Section, and C if it is under the financial section.

_________ 1. Business structure

_________ 2. Financial statements
_________ 3. Potential customers
_________ 4. Break-even analysis
_________ 5. Products or services to offer the market

TASK #02: THE 7 KEY COMPONENTS OF A BUSINESS PLAN

A business plan is an essential tool to ensure that you have a clear path for your
business. Enumerate the seven key components of a business plan.

1.
2.
3.
4.
5.

TASK #03: SWAK OR WHACK

 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

The following are statements related to preparing the execution of a business idea
through the crafting of a business plan. Write SWAK if the statement is correct and write
WHACK if the statement is incorrect.

_________ 1. A business plan is a written description of your business's present state.

_________ 2. A business plan outlines clear steps and goals to take your business from an idea
to a growing company.
_________ 3. You can formulate a business plan after you have established your business.
_________ 4. Financial statements and ratios are included in the business section of a
business plan.
_________ 5. Though it may sound tedious and time-consuming, business plans are critical to
success.

ASSESSMENT

1. It is a written description of your business's future.

A. action plan C. market study
B. business plan D. qualitative research
2. The three primary parts to a business plan are the following EXCEPT:
A. business concept C. industry idea
B. financial section D. marketplace section
3. In this section of the business plan, you describe the competition and how you'll position
yourself to beat it.
A. business concept C. industry idea
B. financial section D. marketplace section
4. Business plans are useful and advantageous in the following ways EXCEPT:
A. to convey their vision to potential investors
B. to deal with suppliers
C. to demotivate key employees
D. to understand how to manage their companies better
5. As Marie writes her business plan, she writes her business’s projected income and cash
flow statement, balance sheet and other financial ratios, such as break-even analyses in
the __________.
A. business concept C. industry idea
B. financial section D. marketplace section
6. Laura discusses the industry, business structure, and her particular product or service
in the __________.
A. business concept C. industry idea B. financial section D. marketplace
section
7. Which of the statements is INCORRECT about business plans?
A. It gives entrepreneurs the ability to lay out their goals.
B. It helps the entrepreneur track their progress as their business begins to grow.
C. It should be the last thing done when starting a new business.
D. It is important for attracting investors so they can determine if your business in on
the right path and worth putting money into.
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE

8. The business plan is useful for the following people EXCEPT:

A. creditor C. investor
B. entrepreneur D. social media influencer
9. Through the business plan, Angelo was able to avoid committing crucial mistakes in
calculating the supplies he needs for his crafting business. In a sense, the business
helped him in __________.
A. avoiding the big mistakes C. making critical decisions
B. communicating objectives D. understanding the and benchmarks broader
landscape
10.Because her business plan was well written and with good data, Alicia was able to get an
investor for her Beauty Salon business. Hence, her business plan helped her in
A. ironing out the kinks C. reducing risks
B. proving the viability of the business D. securing financing
11.Formulating a business plan should be the _________ thing done when starting a new
business.
A. first C. third
B. second D. last
12.Rita, an entrepreneur prepares the section of her business plan which contains the
income and cash flow statement of her new business. This section is:
A. business concept C. industry idea
B. financial section D. marketplace section
13.In this section, Marcelo writes in his business plan the industry he wants to enter, the
business structure, the products he will be selling.
A. business concept C. industry idea
B. financial section D. marketplace section
14.Entrepreneurship is a risky business, but that risk becomes significantly more
manageable once tested against a well-crafted business plan Hence, a business plan can:
A. avoid the big mistakes C. prove the viability of the business
B. iron out the kinks D. reduce risks
15.When starting a small business, you don’t need a business plan.
A. True B. False C. Maybe D. I Don’t Know

IV – Answer Key
To be withheld by the teacher

V – References
. DepEd SHS Entrepreneurship Modules (ADM)

Prepared by:

MONINA D. LEGASPI
SHS-Teacher III
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE