BICOL COLLEGE INC.

Senior High School Department

Daraga, Albay

SELF LEARNING MODULE

IN
ENTREPRENEURSHIP
INTRODUCTION TO BUSINESS
PLAN
PREPARATION

1st Quarter - Module 1

Grade 12
(2nd Semester S.Y.2020-2021)
Mrs. Melanie A. Pareja
Subject Teacher

Dr. Maricar T.
Magcalen SHS
Coordinator

Name of Student: Grade &

1|ENTREPRENEURSHIP
Section:

2|ENTREPRENEURSHIP
 I. Title of Material/Introduction:
INTRODUCTION TO BUSINESS PLAN PREPARATION
This module covers the entrepreneurial activities that must be Under taken
immediately prior to the opening of small business and during the business
operation.

II. Objectives:

At the end of this lesson, the learner should be able to implement the business plan.
Specifically, the learner must be able to:
1. Define business plan,
2. Specify the different sections of the business plan, and
3. Identify the information included in the Introduction section of the business plan.
4. Compare and contrast business plan and feasibility study
5. Give the importance of the business plan

III. Vocabulary List:

Business - refers to the organized efforts and activities of individuals to produce and sell
goods and services for profit.
Business Plan - is a detailed and integrated written document that describes the various
activities involved in opening and operating a new entrepreneurial venture.
Entrepreneur – refers to a person who strongly advocates and correctly practices the
concepts and principles of entrepreneurship in operating and managing the self-owned
entrepreneurial venture.
Entrepreneurship – is the art of observing correct practices in managing and operating
a self-owned, wealth-creating business enterprise by providing goods and services that
are valuable to the customers.
Feasibility – the possibility that can be made, done, or achieved, or is reasonable.
Corporation - is a legal entity created by individuals, stockholders, or shareholders, with
the purpose of operating for profit.

Pre-Test:
III.
Multiple Choice. Write the letter of your answer.
1. Which of the following BEST described a business plan?
a. A gallery of photos that explains the location and construction of the business
b. A written plan that is a description of all the aspects of the business
and includes the business's goals
c. A collection of plans that are combined from different business and
then analyzed and compared to your business
d. A list of guidelines that tell successful business's how to run their company
in order to make a profit.
2. What are the advantages of creating a business plan?
a. To secure financing
 b. Allows the entrepreneur to focus on what they want to accomplish
c. To set better objectives and benchmarks
d. All of the above
3. Who should prepare the business plan?
a. Anyone c. someone on the business
b. Entrepreneur d. Stakeholder
4. What section of the business plan can we find the Proposed Name of the
Business, Address of the Business, Name of the Owner or Owners, Description of the
Business, Location of the Business, Funding Requirement and Source?
a. Introduction c. Production Plan
b. Organizational Plan d. Operation Plan

5. Which of following is the LEAST factor to be considered when deciding on

the location of the proposed business?
a. Distance from the sources of raw materials, labor, and utilities
b. Peace and order situation
c. The geographic and climatic conditions
d. Proximity to the house of the owner of the business

IV. Learning
Activities:
1. Perform Activity #1 – FOUR PICS, ONE WORD!
2. Read the definition of a business plan and know the reasons why you need
to prepare a Business Plan for small business.
4. Read the comparison between Business Plan and Feasibility Study.
5. Identify the Major Parts of the Business Plan and be familiar of its content.

Activity #1 - FOUR PICS, ONE WORD!

What is/are the word/s being described by the group of four pictures?
1. 4.

2. 5.
 3. 6.

Based on the words that you have formed on the previous activity; how do we define a
Business Plan?

Take time to Read Young Entrepreneur!

A business plan is also a road map that provides directions so a business can plan its
future and helps it avoid bumps in the road. It is the only single written document that
must be prepared before opening a new business or expanding an existing business. It
provides a clear direction to any uncertain business endeavours.
A business plan is a detailed and integrated written document that describes the various
activities involved in opening and operating a new entrepreneurial venture.

10 Reasons Why You Need to Prepare a Business Plan for Small Business
1. To help you with critical decisions
2. To iron out the kinks
3. To avoid the big mistakes
4. To prove the viability of the business
5. To set better objectives and benchmarks
6. To communicate objectives and benchmarks
7. To provide a guide for service providers
8. To secure financing
9. To better understand the broader landscape
10. To reduce risk
Guided Questions:
1. What are some of the tests that need to be conducted before putting up a business?
2. What is the difference between Business Plan and Feasibility Study?
3. Who should prepare a business plan?
There is another written document that must be prepared and is equal importance as
the business plan. This is the feasibility study which serves as the forerunner of the
business plan.
Two Major Tests to be conducted every time a New Business Idea is created
1. Test of Possibility
2. Test of Feasibility
The test of possibility on the new business should have a positive result, so that the test
of feasibility or viability will be conducted.

Business Plan versus Feasibility Study

The primary objective of the feasibility study is to determine whether the proposed
business is feasible or not in all areas. If the outcome of the feasibility study is positive,
then the entrepreneur prepares the business plan.
The content and structure of the business plan are almost the same as those of the
feasibility study. The data shown in the feasibility study are the same set of data
presented or used in the business plan. Nonetheless, the business plan presents a
more detailed discussion of how the business will be undertaken and operated.

MAJOR PARTS OF THE BUSINESS PLAN

There is no universally accepted standard format or structure of the business plan.
1. Introduction
2. Executive Summary
3. Environmental Analysis
4. Business Description5. Organizational Plan
6. Production Plan
7. Operation Plan
8. Marketing Plan
9. Financial Plan
10. Appendix

Introduction
The introduction presents the general perspective of the business. It may consist of one
to two pages. It includes, among others, the following sections:
1. Proposed Name of the Business
2. Address of the Business
3. Name of the Owner or Owners
4. Description of the Business
5. Location of the Business
6. Funding Requirement and Source
In case the consulting team prepares the business plan for prospective owners or
investors, the section Statement of Confidentiality is added as the last section.

Proposed Name of the Business

The formulation and drafting of the proposed business name is not as simple as it
sounds. It is a delicate and important entrepreneurial task. Remember that the name of
the business may exist in the market for the many years. Careful and in-depth planning
is of prime importance.
The proposed business name must:
1. Reflect the business identify and image,
2. Promote the philosophical values and culture that the business values
the most,
3. Profess the brand identity of the product, and
 4. Attract or influence the target costumers
At least three suggested trade names must be submitted to the department of
Trade and Industry for approval and registration.

Address of the Business

It is important that the address of the Business is correctly written because all business
correspondence is mailed to the business address. Raw materials and other
manufacturing supplies are also shipped by the seller to the designated business
address. Nowadays, it is also necessary for the business to have an e-mail address to
facilitate electronic communication between the business and the customers, suppliers,
creditors, and other significant parties.

Name of the Owner

The name of the owner must be properly stated. In a sole proprietorship, there is only
one owner. In case the venture is a partnership, the names of the partners, including the
extent of their liabilities, must be indicated. For example, if a partner’s must be properly
mentioned.
For business ventures that will operate as a corporate entity, the names, nationalities,
and addresses of the incorporators must be given. Incorporators are persons who
originally formed the corporation.

Description of the Business

A brief description of the business must include information about the type of product or
service that the business intends to produce or provide. It may include a brief
information about the ultimate mission, vision, and objectives of the business.
The other products or services that the business plans to produce or provide must also
be mentioned in the description of the business.

Location of the Business

There are no rigid rules in the selection of the business location since several variables
affect the selection of the business location. The basic entrepreneurial consideration is
to place the proposed business in a strategic location that will assure competitive
advantage.

What is the difference between the sections Address of the Business

and Location of the Business?
The former simply states the exact business address. No additional description is
provided to highlight the exact business address. The latter indicates the reason/s for
the selection of the location. In case the processing plant is not within the vicinity of the
business, its exact location must be described.

The following factors should be considered when deciding on the location of the
proposed business:
1. Proximity to the target customers
2. Distance from the sources of raw materials, labor, and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions

Funding Requirement and Source

The estimated total initial cost of the business venture must be clearly indicated.
It should include the projected breakdown or allocation of the total cost, e.g., how much
will be for building, fixtures, equipment, supplies, and working capital. This section also
presents the source or sources of funds. The initial cost of the investment may be
provided solely by the owner or owners or partly by the owner and creditors. The
estimated period to settle the funding source provided by the creditors must also be
mentioned.

VI. Practice Tasks

Practice Task 1 - WHO’S WHO? ENTREPRENEUR X OR Y?
Consider the following situation.
Entrepreneur X
Entrepreneur X put up a coffee shop immediately in his barangay. He thought of an idea
that early bird catches the worm.
He eventually hired his friends and ordered stocks for his coffee shop business.
Entrepreneur Y
Entrepreneur Y is planning to open a bakery shop in his place. He gathered first
information from the residence of his place whether what kind of bread they love to eat.
Questions:
1. Among the two entrepreneurs, who do you wanted to
be? Why?
2. What is/are the risks to be taken by each entrepreneur?
3. What do you think the importance of business planning is?

Practice Task 2 - JUSTIFY ME.

Write True if the statement is correct. Otherwise write False and state your reason
briefly/change the word/s that make it false.
1. The process of determining the profitability of the business is considered a test
of possibility.
2. After the preparation of the business plan, the entrepreneur prepares the
feasibility study of the business.
3. The business plan is entirely different from the feasibility study.
4. The feasibility study is more detailed than the business plan.
5. One of the major parts or sections of the business plan is the marketing research.
6. The executive summary is usually shown as the last part of the business plan.
7. One of the sections in the introduction of the business plan is the address of
the business.
8. The funding source and requirements are usually shown as a part of the
business description.
9. The name or names of the owner or owners of the proposed business are
considered very delicate information. Hence, they must not be included in the business
plan.
10. The business plan is a mixture of facts and assumptions.

Practice Task 3 – TELL ME A STORY

Cite a true story that you have known wherein the importance of making a
business plan before the implementation was needed. You can share it in class or have
it written in a paper.

Form a group of five (5) and do the following. Follow the format below and then
share your output in class. Please be guided with the scoring rubrics below.
1. Think of three possible names (for the average learners) and five possible names
(for the advanced learners) of your small business.
Rank them according to your preferences.
2. Indicate the proposed complete address your business.
3. Write your names as owners of the business.
4. Make a brief description of your business. You may include the product or service
that you plan to sell or serve.
5. Cite the reason for choosing the location.
6. Based on the nature and type of your proposed small business, determine the
initial funding requirement.
7. State also the possible source/s of funds.
Proposed Proposed Name of Brief Reason/s Initial Possible
Business Address Owner/s Description for Funding source/s
Name of the choosing requirement of Fund
Business the
location

Note to Students…
The group they will form will be the permanent group until they finished the business
plan and was able to implement it. The business that they will write should be more
realistic this time since those are the options that they need to consider and subject for
the approval of the teacher. Financial aspects should be taken in consideration.
The scoring rubric below will be used.
 SCORING RUBRICS
CATEGORY BEGINNING DEVELOPING PROFICIENT HIGH EXCELLENT
2 4 6 PROFICIENT 10
8

Two or One question All questions

The work is Many questions more is partially are answered
very are questions answered or completely
Completeness
Incomplete. missing/partially are missing completely
Complete. or partially missing.
complete.
Some There are 2 There is 1 There are 0
Correctness The work is questions/tasks or 3 errors error in the errors in the
full of were not in the output. output.
errors. answered output.
correctly
Shows no Shows little or Shows Demonstrates Demonstrates
interest in mixed feelings some greater strong
Confidence in topic about the topic enthusiastic enthusiasm enthusiasm
Presentation presented being feelings about topic about topic
presented about topic during entire during entire
presentation. presentation.
Collaboration We did the Only some of We worked We worked Everyone
work by the group together together so worked
ourselves. members are most of the that everyone together
We talked cooperative. time. contributed to using his/her
a little Sharing the final knowledge
among ideas output. and abilities
group regularly. to make the
members output come
together.
Cleanliness Our final There are some Our work is Our final There are no
output is erasures clean. output is very erasures.
full of clean
erasures

VIII.
Assignments
With the same group, do the following:
1. Prepare the introduction section of your business plan. The cover page of
your final output will appear below.
 BUSINESS PLAN
(Name and Address of Your Proposed Business)
JYNAPHI PROCESSING COMPANY
216 JALIPA STREET, PBLACION 1
PIGCAWAYAN, COTABATO
[email protected]

OWNED BY:
(Your Names as the
Owners) ANGEL TOLEDO
PRINCESS MALAZARTE

Note that since the name, address, and name/names of the owner/owners of the business
appear on the cover page, they may no longer be repeated in the Introduction section.

2. Use the guide for the format of the Introduction section of your business plan.
 INTRODUCTION
This section of the business plan presents the description of the business, its
location, and the total funding requirements and the possible funding source.

Description of the Business

Location of the Business

Funding Requirement and Source of Funds

SCORING RUBRICS
CATEGORY BEGINNING DEVELOPING PROFICIENT HIGH EXCELLENT
2 4 6 PROFICIENT 10
8

Two or One question All questions

The work is Many questions more is partially are answered
very are questions answered or completely
Completeness
Incomplete. missing/partially are missing completely
Complete. or partially missing.
complete.
Some There are 2 There is 1 There are 0
The work is questions/tasks or 3 errors error in the errors in the
Correctness
full of were not in the output. output.
errors. answered output.
 correctly
Collaboration We did the Only some of We worked We worked Everyone
work by the group together together so worked
ourselves. members are most of the that everyone together
We talked cooperative. time. contributed to using his/her
a little Sharing the final knowledge
among ideas output. and abilities
group regularly. to make the
members output come
together.
Cleanliness Our final There are some Our work is Our final There are no
output is erasures clean. output is very erasures.
full of clean
erasures
:

References:
Aduana, Nick L (2017).Entrepreneurship in Philippine Setting for Senior
High School, Quezon City, Philippines : C & E Publishing Inc. pp.6, 211-220.
https://www.entrepreneur.com/encyclopedia/business-plan
https://www.waveapps.com/blog/entrepreneurship/importance-of-a-business
plan
https://www.investopedia.com/terms/b/business.asp
https://dictionary.cambridge.org/us/dictionary/english/feasibility
https://corporatefinanceinstitute.com/resources/knowledge/finance/what-
is corporation-overview/