BYOB - Module 1 - Basic Concepts of Business

ALTERNATIVE LEARNING SYSTEM
REGION X- NORTHERN MINDANAO

DIVISION OF CAGAYAN DE ORO CITY
ACTIVITY SHEET FOR BE YOUR OWN BOSS (BYOB)
Module 1 What is my Business
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
LEVEL Basic Literacy Lower Elementary  Advanced Elementary  Junior High School Senior High School
BASIC CONCEPTS OF BUSINESS – Definition &

LAS TITLE LAS NO. 01 SCORE
Business Activities
a. Have a clear understanding of what doing business means
OBJECTIVES b. Learn that a business produces goods or services for customers for
the purpose of generating a profit
CONCEPT NOTES
A business is....
• An activity operated for the purpose of earning a profit by providing a service or a product.
• A set of regular activities conducted by an individual or a group of individuals to generate
profit by fulfilling the needs of other people.
• A business provides something that others want to pay for it.
• Business involves a businessperson putting money into the business activity.
• Note that the Philippines’ GDP consists of:
o Transportation, Storage and Communication (7.27%)
o Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods (16.88%)
o Financial Intermediation (7.39%)
o Real Estate, Renting & Business Activity (11.38%)
o Public Administration & Defense; Compulsory Social Security (4.28%)
o Other Services (10.5%)
There are 3 things/activities that are required in all the businesses....

• Buying inputs (materials and equipment) – these are the necessary inputs to operate the business.
• Producing (goods or services) – these are various tasks or activities that must be carried out for the business to produce
results
• Selling (goods or services) – these are the tasks related to linking the products to the consumers or customers.
Profit is....
• The amount that remains after subtracting the cost of providing the service or product from the sales income.
• When the production cost is higher than sales, the business makes a loss.
• Profit is calculated by subtracting total costs/expenses from income
Profit = Total income – Total expense
ACTIVITY:
Complete the crossword puzzle. (2 points
each)
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
BASIC CONCEPTS OF BUSINESS – Categories &

Activities
OBJECTIVES
a. Describe the common categories of business
b. Describe the three basic business activities: buying, producing, selling
CONCEPT NOTES
Examples of business activities:

Buying inputs - Software supply (GDS providers ex: Octagon, CD-R King), Governmental/municipality license
Operational activities - Vehicle support for transportation and logistics, Coordinating with the middle-men
Selling (Marketing activities) - Identifying the method of communication to clients, Approaching global and regional
tickets/tourist package providers
Businesses can be categorized according to their activities as follows:
 Agricultural business - If a person is growing crops in the northern region or rearing livestock for sale, we say he/she is
running an agricultural business.
 Manufacturing business – If a person uses raw materials, labor and tools, equipment or machinery to produce finished
products, we say he/she is running a manufacturing business.
 Service business - If a person satisfies the needs of others without producing tangible product using his skills and tools,
equipment, or machinery, we say he/she is running a service business.
 Construction business – If a person is engaged in making physical structures (such as buildings, roads, drainages, bridges
etc.) as well as the supply, production, retail or rental activities of the construction materials and equipment, we say
he/she is running a construction business.
 Trading business – If a person buys goods from producers or wholesalers and sells them to others at prices higher than
their purchase prices, we say he/she is running a trading business. This is also known as “buy and sell” business.
ACTIVITY:
A. Describe the following business activities for travel/tourism agency. Distinguish each one if they belong to buying inputs,
operational or selling and write in the corresponding box. (5 points)
• Office Supply • Internet connection • Generate travel/tourist packages
• Ticket Issuing online/physical • Identify seasonal period for demand/ sales/promotion
Buying Inputs Operational Activities Selling (Marketing Activities)
B. Categorized the following business given in the scenario. Write the letter of your answer. (5 points)
A. Agricultural B. Manufacturing C. Service D. Construction E. Trading.
__________1. Anthony buys vegetables from the farmers in his community and sells them to vegetable retailers on the
market at nearby town.
__________2. Juan is producing concrete hollow blocks to sell them to individuals and contractors in the surrounding area.
__________3. Marissa buys different food items to prepare food for sell to the people in her barangay.
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
__________4. Janus makes chairs and tables using wood, nails, binding applications, paints, tools and skills to sell them to the
people in his barangay.
__________5. Maria is raising chickens to sell them on the market.
CORE BUSINESS SKILLS – THE TREE

EXAMPLE/METAPHOR
a. Describe the important activities involved in running a business using the metaphor / example of the
OBJECTIVES business tree.
b. Learn a set of core business skills
CONCEPT NOTES
Business Concepts and skills are very essential because lack of basic business skills is often what causes the failure of small
businesses.
Comparison of the
Tree and Business
The tree metaphor is important
Because....
• It uses existing knowledge in the community.
• The tree is also quite culturally neutral, which helps to avoid cultural misunderstandings during the training.
• People know many things about trees: their different parts, how they grow, their needs, etc.
• The tree is a good way to explain the dynamics of business and can link a range of business concepts and skills in natural
way.
• If you can take care of a tree, it can give you nice fruits.
• Similarly, if you take care of your business, you can get profit
PERFORMANCE TASK:
Draw a tree using a cartolina and label it with the parts of the tree together with the corresponding business concepts. Assign
reporters to explain the importance of tree metaphor.
GROUP NAME:
Rubrics:
Label – 10 points
Drawn Tree – 10 points ____________________________
Creativity – 10 points
Teacher’s Signature:
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
Neatness - 5 points
Teamwork – 5 points
Delivery of Explanation- 10 points
Total 50 points
LAS TITLE SETTING GOALS LAS NO. 04 SCORE
a. Understand vision and mission statements
OBJECTIVES b. Understand SMART goal setting
c. Develop their own business SMART objectives and goals
CONCEPT NOTES
Vision
A good vision statement should answer the basic question: “What do in want my business to become?” It should be short and
simple. It should be specific to your business. It answers the question “what” – what my business aspires to achieve.
Mission
A good mission statement is written by a team from the business, and should answer the basic question: “How do I want my
business to operate?” It should state the purpose of your business and how you will do business – your values. It will
include the goals of your business.
Setting Goals
GROUP ACTIVITY:
Think about a group business. Answer the following questions about the objectives, and then write a
SMART Goal that fits the section. Use the Answer sheet given next page.
GROUP NAME:
Rubrics:
Complete answer – 17 points
Neatness - 3 points ____________________________
Total 25 points
RUBENETH V. SALAZAR
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
SMART Objectives and Goals
Specific
What will you achieve?
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How will you know when it is done? When you see it?
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A SPECIFIC Goal is:
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Measurable
If applicable, what are the quantity expectations?
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If applicable, what are the quality expectations?
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If applicable, what are the profit/cost expectations?
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A MEASURABLE Goal is:
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Achievable
What are the knowledge, skills, abilities and experience needed to achieve the objective?
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NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
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Are there available resources to achieve the objective? If so, what are they?
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Are there any time factor or environmental constraints that need to be considered? If so, what are
they?
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An ACHIEVABLE Goal is:
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Relevant
Why are you doing this?
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Which objective does it support?
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A RELEVANT Goal is:
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Time-Oriented
When does it need to be completed?
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What will you achieve in six months?
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A TIME-ORIENTATED Goal is:
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NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
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LAS TITLE COMMUNITY MAPPING OF BUSINESSES LAS NO. 05 SCORE
a. Identify different business types in their community
OBJECTIVES b. Identify customer sources in their community
c. Identify possible locations for their business in their community
SELF-LEARNING ACTIVITY 1:
• As a self-learning activity, draw a map of

your community.
• Think about where you might locate your
business.
• Map out potential clients, partners, and
competitors.
• Map out similar and different businesses.
• Bring it with you next week.
PERFORMANCE TASK:
Draw a community business map on the assigned area for your group and explain it to the class.
Rubrics:
Map – 25 points
Creativity – 10 points
Explanation – 10 points
Total 50 points
GROUP NAME:
____________________________
RUBENETH V. SALAZAR
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
Characteristics of a Successful Business Owner

HOW PREPARED AM I TO START BUSINESS?
a. Identify characteristics of successful business owners in their community
OBJECTIVES b. Identify which characteristics of successful business owners they already possess
c. Determine which characteristics of a business owner they need to improve / work on
CONCEPT NOTES
Key Characteristics of a Successful Business Owner

1. Vision: One of the most important characteristics of a business owner is establishing a clear road map of where you
want your business to go. Success comes from taking time to define a clear vision and clear idea about where they are
going and how they intend to get there.
2. Setting goals: A successful business owner should set clear goals that allows him/her to achieve pre-determined
vision
3. Hard Work: Starting a business will be hard work, but the rewards can be great. It will require you working more
hours, weekends and even on holidays. When you put a lot of effort into your business you will enjoy the rewards.
4. Keeping Costs Low: Successful business owners with little cash make a conscious decision to keep costs as low as
possible. It meant working out of own residence home for the first couple of months or years. They are willing to
compensate the shortfall of startup capital in the form of more effort and time. They do not waste supplies, make
unnecessary phone calls, or they spend their money wisely. Work harder and smarter than their competitors.
5. Good Money Habits: Successful business owners have good money habits. They manage what they earn; strive to
earn more, spend less, save more money, and when appropriate invest the rest. And they have specific saving goals,
consistent saving habits both during difficult and easier times, they save a small amount that they can afford, and they
tend to live well below their “means” and do more saving than spending.
6. Starting Small: They are willing to start small and expand their business gradually.
7. Perseverance: Business owners are always focused on staying in business despite the challenges in the
environment at the time. Finish what they start, even under difficult circumstances. They recognize that success
doesn’t happen overnight.
8. Passion: A genuine love for their job is one of the most important characteristics of a successful business owners.
They are willing to put in those extra hours to make their business grow; they get a genuine sense of pleasure from
their work that goes way beyond just the love of money.
9. Customer Service. Customers are the source of income for a business. Successful business owners put good
customer service first. They continually build their customer base.
10. Risk Taking: Every business involves risk and this is particularly true for new businesses. A business does not
necessarily work out as planned and there is always the possibility of loss. Successful business owners take a well
thought-out and moderate risks and not put all their assets at risk. Blind risk taking is usually a recipe for disaster.
11. Self-Confidence: This is the belief that you have the right skills to successfully run your business. As a business
owner you must develop the right people skills and sales techniques to confidently promote your product and
constantly attract new customers. If you believe in yourself, others will too.
12. Innovative: Successful business owners have a unique set of skills that can be used to create
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
new business opportunities. They have the ability to come up with new and better ideas to
solve a problem and see things from many angles.
Characteristics of a Successful Business Owner

LAS TITLE What characteristics of successful business owners do I LAS NO. 07 SCORE
possess?
a. Identify characteristics of successful business owners in their community
OBJECTIVES b. Identify which characteristics of successful business owners they already possess
c. Determine which characteristics of a business owner they need to improve / work on
ACTIVITY:
• If most of your answers were, “Yes this is definitely me” then you possess many characteristics for success in business.
• If most of your answers were “I don’t know,” then take some more time to get to know yourself. Don’t worry it’s better to say,
“I don’t know” than to give an answer you are not comfortable with!
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
• If most of your answers were “No way! This is definitely NOT me!” you may not be ready or you may not be suited to or
interested in starting your own business.
• Also, you may definitely possess the characteristics of successful business owners but need to improve or work on those
characteristics to boost your chances of succeeding in business.
LAS TITLE Business Ideas - COMING UP WITH A BUSINESS IDEA LAS NO. 08 SCORE
a. Explain what a business idea is
OBJECTIVES b. Describe the different ways of generating business ideas
c. Generate a number of business ideas
CONCEPT:
A business idea is...
➢ An activity that can be used to make money.
➢ An idea about what products or services that can be offered for money; where and how you are going to sell them
and who are you going to sell them too.
➢ An idea about who the customers will be.
➢ Unique, Innovative, Creative, Inspirational.
➢ The business idea is the first step in the process of starting a business. Every successful business starts as
someone’s idea. Without a business idea, there is no business.
➢ A good business starts with a good business idea. Before you can start a good business, you need to have a clear
idea of the type of business you want to operate.
Sources of Business Ideas
People’s needs and problems: The business idea can be identified by observing the needs of people in a particular
area and talking to them. It should also solve the problem many people have.
The business owner’s skills and experiences: This is a person’s training, skills and experiences, and the ability to turn
them into business.
Gaps of Products that many people buy from outside the area or community: See whether you can provide them
locally, people might buy from you since your business will be closer to them.
Product from different places: May be someone told you about a new way of using materials, a new way to produce
something or a new way to solve a problem.
Needs that develop over time and originate from a change in individual preferences or in technology: For example,
solar charger for mobile phone in rural areas.
Internet Searches for Innovative, Unique, and Inspirational ideas: Be creative and look online for inspiration that
resonate with you.
ACTIVITY:
Shining Sun
Write a Business Sector on the
face of the sun or inside the circle.
On each of its four rays write one
business idea related to the word
written on the face of the sun.
Example:
• Agriculture: Growing Rice; Breeding

Chickens; Growing Vegetables;
• Technology: Developing Websites;

Repairing Mobile Phones; Online
Sales; E-Deliveries
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
Business Ideas - COMING UP WITH A BUSINESS

IDEA
a. Explain what a business idea is
OBJECTIVES b. Describe the different ways of generating business ideas
c. Generate a number of business ideas
CONCEPT:
How do I get Business Ideas
Community mapping: Youth will examine their geographic area in order to identify important locations, resources,
economic and social activities.
Visioning process: Allows youth to use their imagination to define the future they want and a set of an intended
course of actions to achieve their goals and objectives.
Internet Searches: Use technology to find innovative, unique, and inspirational ideas.
Developing a creative business idea related to your initial business idea: Identify and list business ideas that are
closely related to your initial business idea that will help you operate your business or might arise from my business
idea.
Value chain analysis: Study existing business activities to identify needs, gaps or problems and think about ways to
solve them. For example, an area that has high vegetable production may require local collectors or wholesalers who
would buy from local producers, transport, and sell in secondary or big cities.
Conversation with family members, friends and other people already in business: This involves talking to other
business owners and listening carefully about their experiences, needs and advises.
Considering all the resources and institutions available locally: This means various valuable resources from nature,
industries, and waste products available in the environment that can be turned into a business idea. It also involves
the available institutions that can serve as a source of inputs or as potential customers to your business. For example,
availability of farmland, water resource, a number of educational or other public institutions that employ many
people in your area.
Observing items of common use: at home, in the street, in shops – and to think of ways of improvement.
Follow your Passion: What do you want to do? What will give you satisfaction? How can this become a business idea?
GROUP ACTIVITY:
A. Create your group business ideas.
Business Idea 1 Business Idea 2
B. What activities or operations are needed to conduct my business idea?

Business Idea 1 Activities Business Idea 2 Activities
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
LAS TITLE Business Ideas – Testing Your Business Idea LAS NO. 10 SCORE
OBJECTIVES a. Apply a business idea test to their business ideas
CONCEPT NOTES ONLY:
Having a good idea is the beginning of a successful business start-up process. The challenge is not the lack of
business ideas, but finding the right idea that matches the young person’s resources, interests, skills and experience
with a market demand. Is your business idea a good idea?
Use these tests to help you figure out if it’s a good idea and what you could do to make it stronger.
Test 1: Satisfies a want or need

Is this business providing something that people or other businesses in the community want or need? When
you look for things that people want think about what they like.
Test 2: Market of adequate size
Another criterion for the selection of a successful idea is that it demonstrates adequate market size for the
product or services offered. Who are your likely customers for this particular business? Will they be enough in
number to keep your business viable? A business idea will have value only when it succeeds in the market. So,
there must be a market willing to buy what you want to sell and one way to measure the demand is starting
small.
Test 3: Few similar businesses
Are there many other similar businesses around? Similar businesses have to compete for customers.
Sometimes there are too many of one type of business for the number of customers. When you consider your
business, think about how many other similar businesses are in your community.
Test 4: One of your interests
People tend to succeed and do well when they are engaged in something that they really enjoy. Your business
should be no different. Do what you love, the money will follow. We know business owners work very hard. So
it helps to do something you love! Is this business something you are interested in? Can you see yourself
spending a lot of time working at it?
Test 5: Potential to make a profit
Whatever business you start, whatever product or service you sell, you have to be able to sell it at a price high
enough to make a profit, but low enough that people will buy it. Keeping this balance is not always an easy
task. Before jumping into a business, you must consider these issues very seriously.
Test 6: Feasibility
Some businesses are inexpensive to start, home-based businesses in particular. Others can be quite expensive.
In addition to choosing a business that you like for whom you have a market, you also must make sure that it is
one you can afford to start. Do you think you will be able to get the raw materials, equipment and start-up
capital required to start and carry out this business? How does this kind of business suit for your personal skills
and abilities?
Test 7: Government support
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
Will this be the kind of business compatible with government policies and priorities? Does it help you to gain
access to government support such as working premises, product display center, technical and business skills
training, market linkage, credit and technology that will be good for your business.
LAS TITLE Business Ideas – Testing Your Business Idea LAS NO. 11 SCORE
OBJECTIVES a. Apply a business idea test to their business ideas
GROUP ACTIVITY:
Testing your Own Business Idea:
Write your best two (2) business ideas from LAS No. 09 in the spaces below. Present your business ideas to
your teacher to test your business ideas using the Criteria.
Rate your response as very good, good and poor. The business idea could be selected if the test
result is mostly very good or good.
Business Ideas 1. 2.
Team:
________________
________________
Testing Criteria
Test 1:
Satisfies a want or need
Test 2:
Market of adequate size
Test 3:
Few similar businesse
Test 4:
One of your interests
Test 5:
Potential to make a profit
Test 6:
Feasibility
Test 7:
Government Support
Rate (how many) Business Business
Idea 1 Idea 1
Very good (VG)
Good (G)
Poor (P)
Final Result Teacher’s Signature & Date:
VG/G (4-7)
accepted
otherwise RUBENETH V. SALAZAR
rephrase
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
LAS TITLE BUSINESS OWNER INTERVIEW LAS NO. 12 SCORE

a. Have conducted a self-learning activity in a real workplace, a real small business
OBJECTIVES b. Learn about what real business owners have done to start their business
c. Reflect on future business ideas
SELF-LEARNING ACTIVITY 2:
Questions for a Business Owner: I am my Own Boss
Talk to the owner, like you are having a conversation, like you are interested.
Ask just a few questions. As you talk go from one question to the next. During the interview assign one team member per
question to record the answer but before recording ask permission to record the answer. Convene together after the interview
and write down the responses during the interview together with the picture taken.
1. We are youth learning about how to start a small business. Can we ask you a few questions about your business if you do not
mind? And if it’s ok with you to audio record your answers?
Cebuana: Kami mga kabatan-onan nagtuon unsaon pagsugod ang og Negosyo. Pwede ba mi mangutana mahitungod sa
imong Negosyo, kung itugot nimo ma’am/sir? Kung ok lang pud nga erecord namo ang imong mga tubag ma’am/sir?
2. How did you get your idea or concept for the business? Was this part of your vision?
Cebuana: Gi-unsa or Asa man nimo nakuha ang idea ani nga Negosyo ma’am/sir? Parte bani siya sa imong panglantaw sa
kinabuhi?
3. To what do you attribute your success? What personal qualities and characteristics must a business owner possess?
Cebuana: Para asa or kinsa man nimo ginapahinungod ang imong kalampusan ma’am/sir? Unsa man ang mga kalidad og mga
kinaiya angay nga anaa sa usa ka negosyante ma’am/sir?
4. What are the benefits of being your own boss?
Cebuana: Unsay mga benepisyo kung magnegosyo ma’am/sir?
5. What were the biggest initial challenges to starting your business and how did you overcome them?
Cebuana: Unsa kaha ang mga posibleng dagkong hagit/problema kung magnegosyo ma’am/sir? Unsaon man para
mabuntog/malampasan ni mga pagsulay ma’am/sir?
6. Do you keep records of your finances and your number of customers? Is it easy to do?
Cebuana: Kinahanglan ba magrecord sa mga finances og pila ka customers kada adlaw ma’am/sir? Sa tan-aw nimo ma’am/sir
sayon raba kini buhaton?
7. What piece of advice would you give to someone who wants to start his/her own business?
Cebuana: Unsa man imong ika advice ma’am/sir sa mga tao nga gusto magsugod sa iyang kaugalingong Negosyo?
8. Can I take a photo of you and me, to show my class next week?
Cebuana: Pwede ba kami magpapicture para document nga ikapakita sa among klase?
NAME DATE
DISTRIC
SCHOOL/CLC East 2
T
9. Thank you.
Cebuana: Salamat kayo, ma’am/sir!

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ALTERNATIVE LEARNING SYSTEM

REGION X- NORTHERN MINDANAO

BASIC CONCEPTS OF BUSINESS – Definition &

There are 3 things/activities that are required in all the businesses....

BASIC CONCEPTS OF BUSINESS – Categories &

Examples of business activities:

Businesses can be categorized according to their activities as follows:

Buying Inputs Operational Activities Selling (Marketing Activities)

CORE BUSINESS SKILLS – THE TREE

The tree metaphor is important

SMART Objectives and Goals

• As a self-learning activity, draw a map of

Characteristics of a Successful Business Owner

Key Characteristics of a Successful Business Owner

Characteristics of a Successful Business Owner

• Agriculture: Growing Rice; Breeding

• Technology: Developing Websites;

Business Ideas - COMING UP WITH A BUSINESS

B. What activities or operations are needed to conduct my business idea?

Test 1: Satisfies a want or need

LAS TITLE BUSINESS OWNER INTERVIEW LAS NO. 12 SCORE

Questions for a Business Owner: I am my Own Boss

4. What are the benefits of being your own boss?

Cebuana: Unsay mga benepisyo kung magnegosyo ma’am/sir?

Cebuana: Salamat kayo, ma’am/sir!

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