Republic of the Philippines

Department of Education
PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Department of Education
Division of Occidental Mindoro
 WHAT DO YOU
ALREADY KNOW?

PRE TEST

Answer the questions below honestly. Write the letter only of your answer
in your activity notebook.

1. Which of the following is the most basic of all management functions?

a) controlling c) organizing
b) directing d) planning
2. What are considered as positive factors of a business venture?
a) opportunities and weaknesses c) strengths and threats
b) strengths and opportunities d) strengths and weaknesses
3. Which is not true in a business plan?
a) It does not detect the defect. c) It forecasts future situations.
b) It eliminates risk. d) It minimizes costs.
4. What is the most likely the cause of failure of Filipino entrepreneurs?
a) crab mentality c) weaknesses
b) failure to meet deadline d) bahala na attitude

Choose the letter of the correct answer from the pool of words in the box then write it in
your answer sheet.

a) actual business g) SWOT

b) business plan h) goals
c) capital i) costs of productions
d) bloodstream j) risks
e) poor management k) gold
f) production plan

1. _____ serves as your guide in managing your enterprise.

2. A business plan is anticipated before _____is assumed.

3. Lack of _____is one of the entrepreneur’s problems to finance business.

4. _____ is the parallel effect of lack of planning in business.

5. _____is the number of volume of intended production on a specific period of time.

6. ____ is one of the components of business planning.

7. A marketing plan is considered the _____of the office because it gives life to business.

8. An organizational plan is responsible on how to execute plans, objectives and _____of

an enterprise.

9. Planning can minimize ______.

10. In business, time is ________.

Department of Education
Division of Occidental Mindoro
LESSON 4

DISCUSS THE IMPORTANCE OF A BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This module covers the knowledge, skills attitudes and values needed in
discussing the importance of a business plan and enumerating the steps in
preparing a business plan.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:

a) discuss the importance of business planning;

b) appreciate certain benefits in business planning; and
c) follow the basic principles of business planning.

LET US STUDY

Words to Study

 micro means very small/limited in quantity

 endeavor means an effort to do a task

 business planning is the process of setting up goals for a particular business

 business plan means any plan that works for a business to look ahead.

To start a small enterprise , you must have a foresight. Anticipate what may
happen to your business. Any endeavor, particularly the desired form or type of
business, sets the direction of the enterprise.

A. The Benefits Derived from Planning a Business.

 Making a business a plan can minimize or eliminate risks . It involves a careful

study of the competence, interest and resources of the entrepreneur against
the needs of the consumers. A feasibility study is necessary because through
this, an entrepreneur can determine whether his/her choice is profitable or
not.

 A business plan can also minimize the cost of production . This includes how
each of the resources of production such as manpower, money, materials and
machines are used. Every aspect of the business operations is monitored and

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Division of Occidental Mindoro
 controlled which prevents unnecessary waste of resources that will result to
economy and efficiency.

 A business plan can also identify the defects of the business operations. Goals
and objectives are formulated. Procedure, strategies and techniques are
planned. Reevaluation may be done to avoid encountering the same problem.

B. The Basic Principles in Running a Small Enterprise must consider in running a

business/enterprise are the following:

1. Planning must be realistic. It must be based on available human, financial and

physical resources. Planning without enough resources may result to the
failure fail of an enterprise.
2. Planning must be based on the needs of the community . It should fit the
needs of the people in a community which can be known through
observations, personal interviews and questionnaires.
3. Planning must be flexible. You, as the entrepreneur should be able to adjust
and to plan if development changes occur or changes in government laws or
policies happen. Planning should respond to the trends in consumer’s tastes
and preferences.
4. Planning must start with simple projects. This requires simple management
and technology, thus, the micro business is advised.

LET US REMEMBER

Planning is important to ensure a profitable and successful business.

LET US APPLY WHAT YOU HAVE LEARNED

ACTIVITY 1

You are planning to get into_________________ business. Conduct a market

survey if the service will become successful.

Directions: in your own, conduct a market survey in your community. Then, make a
report on the market survey done by answering the following questions:

1. How did you conduct the market survey?

2. As a result of the survey, do you think your proposed business will be successful?
Why/why not?

3. What principle did you follow in conducting the market survey as part of your
business plan?

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Division of Occidental Mindoro
 4. Why do you consider this activity (market survey) as an important tool in planning
a business?
LESSON 5

DETERMINE THE TYPES OF BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson deals with the different types of business plan.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:

a) enumerate the components of a business plan; and

b) determine and describe the different types of business plan.

LET US STUDY

Words to Study

Component is a constituent part of the business plan.

Feasibility study is an analysis and evaluation of a proposed project to determine its

profitability.

Marketing deals with the selling and buying activities of the business.

Project summary deals with the introduction statement of the problem.

After having learned about the importance of business planning, you must know
the different types of business plan.

1. Feasibility study
- It is created in order to minimize risk and to ascertain the viability of a project.

- It is not merely an investigation but a frame work on how the operation of a

business project shall be accomplished.

- It is used to determine the potential success of a proposed business venture.

A feasibility study has a project summary which deals with the introductory
statement of the problem, the business name, the business logo, the business location,
descriptive definition of the project and objectives.

A feasibility study contains five major components, namely:

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Division of Occidental Mindoro
a) Marketing study
- The sufficient demands for the product as well as the competitive position of the
firm in the industry must be determined.
b) Technical study
- In this study, you must consider the manufacturing process, plant size,
production schedule, machinery, plant location and layout structure, raw
materials, utilities and waste disposal.

c) Management study
- This involves on how the project shall be managed such as the business
organization including the organization chart and function of each unit
management personnel, skills and numbers of labor required.

d) Financial study
- You should include the assessment of total capital requirements break-even
outputs, sales and prices, amount of sales required to earn a certain amount of
profit and the cash payback period.

e) Social desirability
- This is measured by economic benefits to the people living in the community and
its vicinities.

2. Concept Paper

It is a written plan for a business on how it will be managed. It is a tool to

represent a certain venture anticipating its future.

The different parts of the concept paper are the following:

a) Introduction – This is the part that discusses the significant details of the
product/service and why the product/service is needed by the community.

b) Objectives - This part gives the details of the business both specific and
general.

c) Rationale – This part focuses on the advantages of putting a certain business.

d) Terms & conditions - In this part, specific agreement from particular to

general things are clarified.

e) Recommendations – This part is very important because it helps to improve

the project in the future.

3. Business Plan

A business plan describes the nature of the business, the sales and marketing
strategy, the financial background, containing a projected profit and loss statement.

Components of Business Plan:

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Division of Occidental Mindoro
 a) The environment –The needs of the people in the community should be
identified.

b) Behavior of the product – You should know the market trends, product demand in
the community, the resources, quantity and quality goods in buying,

c) Location of the business – You should consider the place where customers prefer
to buy.

d) Organizational plan – The needed workers in the business must be listed in the
organizational chart.

e) Production plan – This involves the manpower, money, machinery, materials and
methods to be able to produce the desired output based on anticipated profit.

f) Financial plan – You as an entrepreneur need to determine the fiscal needs of the
business and the sources of needed funds.

4. Project Proposal

This is the initial document that converts an idea or policy into the details of a
potential project.

The Essential Parts of a Business Proposal.

a. Executive Summary
The overview of the proposal from beginning to end should be stated in
the project proposal.

b. Justification
This emphasizes the need of the proposal.

c. Procedure
The steps are being explained where to start and to end.

d. Objectives
The goals or targets of the business are defined.

e. Project Organization and Management

The manpower and function of each are clearly stated.

f. Budget
You should determine the source for the input and output, the profits and
the loss of the business.

LET US REMEMBER

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Division of Occidental Mindoro
A business plan unifies the different parts and activities of the business to achieve its
goals and objectives.
LET US APPLY WHAT YOU HAVE LEARNED

ACTIVITY 2

Directions: Think of a service type of business which you feel is a good venture to
invest on.

Part 1: Make your own concept paper to support your business ideas and plans. Write it
in a sheet of paper.

TITLE OF YOUR CONCEPT PAPER:

INTRODUCTION:

OBJECTIVES:

RATIONALE:

TERMS AND CONDITIONS:

RECOMMENDATIONS:

Part 2: Using your data in the concept paper, conceptualize a Business Plan. Fill in the
data regarding the Components of a Business Plan.

ENVIRONMENT:

LOCATION OF THE BUSINESS:

BEHAVIOR OF THE PRODUCT:

ORGANIZATIONAL PLAN:

FINANCIAL PLAN:

Department of Education
Division of Occidental Mindoro
HOW MUCH HAVE YOU LEARNED?

POST TEST

Direction: Answer the questions below honestly. Write the letter only of your
answer in your activity notebook.

1. Which of the following is the most basic of all management functions?

a) controlling c) organizing
b) directing d) planning
2. What are considered as positive factors of a business venture?
a) opportunities and weaknesses c) strengths and threats
b) strengths and opportunities d) strengths and weaknesses
3. Which is not true in a business plan?
a) It does not detect the defect. c) It forecasts future situations.
b) It eliminates risk. d) It minimizes costs.
4. What is the most likely the cause of failure of Filipino entrepreneurs?
a) crab mentality c) weaknesses
b) failure to meet deadline d) bahala na attitude

Choose the letter of the correct answer from the pool of words in the box then write it in
your answer sheet.

a) actual business g) SWOT

b) business plan h) goals
c) capital i) costs of productions
d) bloodstream j) risks
e) poor management k) gold
f) production plan

1. _____ serves as your guide in managing your enterprise.

2. A business plan is anticipated before _____is assumed.

3. Lack of _____is one of the entrepreneur’s problems to finance business.

4. _____ is the parallel effect of lack of planning in business.

5. _____is the number of volume of intended production on a specific period of time.

6. ____ is one of the components of business planning.

7. A marketing plan is considered the _____of the office because it gives life to
business.

8. An organizational plan is responsible on how to execute plans, objectives and

_____of an enterprise.

9. Planning can minimize ______.

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Division of Occidental Mindoro
 10. In business, time is ________

ANSWER KEY
PRE-TEST POST-TEST
A A
1. D 1. D
2. B 2. B
3. A 3. A
4. B 4. B

B B
1. B 1. B
2. A 2. A
3. C 3. C
4. E 4. E
5. F 5. F
6. G 6. G
7. D 7. D
8. H 8. H
9. J 9. J
10. K 10. K

Department of Education
Division of Occidental Mindoro