1

LEARNING MODULE
THE NOTRE DAME OFMASIAG, INC.
SY 2020-2021

Entrepreneurship
Grade 11 & 12
Quarter 1

Name ______________________________________________

Section ______________________________________________

Subject Teacher ______________________________________________

Class Adviser ______________________________________________

FOR PRIVATE USE

in the Notre Dame of Masiag Inc.
Strictly not for Public Circulation

Foreword to Parents and Students

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Welcome to Notre Dame of Masiag Inc. Modular Learning Modality for school year 2020-2021. This Module
was prepared for use in the Archdiocesan Notre Dame Schools of Cotabato (ANDSC) system. Whenever necessary and
appropriate, the Subject Teacher made some revisions in order to best suit the needs of your particular school.
This set of Modules will be used with an accompanying official textbook available for sale or rental from the
school. For the schools that do not use a textbook, the subject teacher will provide another set of texts or excerpts that will
serve as Substitute of the textbook, which is called Appendix Text. On a regular basis, the student will be directed to do
some activities in his/her Activity/Assessment Notebook. Make sure you have these 3 sets of Materials for your classes: 1)
Modules; 2) Textbook or Appendix Texts; and 3) Activity/Assessment Notebook.
For our Blended Learning, the school will use online technologies to support our Modular Learning Delivery: the
use of online classrooms, links, video presentations, social media, emails, live calls, webinars, etc. Furthermore, the
students are highly encouraged to find supplementary ways of learning like reading materials, multimedia, online
resources, and the aid of the people in the homes. It goes without saying that the parents are the best partners of the school
in the education of their children. Now, more than ever, your children need your support in the delivery of learning.
We are hopeful that despite its few disadvantages, this new approach to education will yield the most for our
students. We also hope that this pandemic will soon end and we can see you face to face. At the beginning of this school
year, may I introduce to you the Vision-Mission and Core Values to be adapted by all the ANDSC schools starting this
school year 2020-2021. Our Module Designers have tried their best to incorporate these treasures in the Modules.
Thank you for choosing Notre Dame.
Rev. Fr. Arnold L. Fuentes, DCC
Director/Superintendent

VISION STATEMENT
Notre Dame of Masiag Inc. , a member of the Archdiocesan Notre Dame Schools of Cotabato, providing quality
education rooted in the gospel values and Marian ideals, envisions to be a center of excellence in the holistic development of
human persons, equipped with knowledge and life-enriching skills who are successful and responsible citizens contributing to the
transformation of society.
MISSION STATEMENT
We commit ourselves to provide innovative programs for dynamic learning experiences in a safe and conducive
environment; foster a culture of peace, understanding and solidarity; develop leadership and exercise social responsibility;
participate in nation building and promote love for country; and collaborate with the local church in its mission of evangelization.

CORE VALUES – N.O.T.R.E. D.A.M.E.

N Noble A Notre Damean demonstrates high moral principles that embody nobility ofcharacter
especially honesty and integrity.
O Obedient A Notre Damean exemplifies fidelity to God and loyalty to country; follows school policies,
rules and regulations; and practices desirable family values.
T Transformed A Notre Damean displays positive disposition in life and an acceptable level of self-confidence
and maturity, and shows capacity for teamwork, collaboration and solidarity.
R Respectful A Notre Damean shows high esteem and regard to oneself, others, the community, country,
nature, environment, and other faiths and cultures.
E Enlightened A Notre Damean demonstrates academic excellence, critical and reflective thinking, and
guided by one’s conscience, makes good decisions and actions based on wise judgment.
D Disciplined A Notre Damean wills and obliges to do what is right and expected, and exercises self-control in
one’s dealings with the world and others.
A Accountable A Notre Damean displays commitment and responsibility in performing one’s tasks, and shows
leadership capacities and sense of volunteerism and initiative.
M Marian A Notre Damean emulates Mary’s virtues especially faith in God, generosity, humility,
prayerfulness, purity, simplicity, and service.
E Empathetic A Notre Damean shows sensitivity and understanding of the feelings, ideas, beliefs, cultures,
traditions, and experiences of others; and shows compassion, friendship, kindness and
love.
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Overview of the Module

This course deals with the concepts, underlying principles, processes and implementation of a business plan. The
preliminaries of this course include the following: 1) discussion on the relevance of the course; 2) explanation of key
concepts of common competencies; 3) explanation of core competencies relative to the course; and 4) exploration of
career opportunities.

References
Books:
Edralin, D.M.(2016).Entrepreneurship. 1253 Gregorio Araneta Ave., Quezon City, Philippines: Vibal Group Inc.
Habaradas, R.B., DBA and Tullao, T.S. Jr., PhD (2016). Pathways to Entrepreneurship. Phoenix Bldg., 927 Quezon Ave.,
Quezon City, Philippines: The Phoenix Publishing House Inc.
Morato, Eduardo Jr. A. (2016).Entreprenuership. 856 Nicanor Reyes Sr. St., Sampaloc, Manila, Philippines: Rex Book
Store,Inc.

Websites:
https://www.masterclass.com/articles/how-to-brainstorm-new-business-ideas#1-brainstorm-your-purpose
https://www.nolo.com/legal-encyclopedia/need-business-plan-reasons 29758.html#:~:text=Reasons%20to%20Create
%20a%20Business%20Plan&text=determine%20whether%20your%20business%20has,lenders%20to%20fund%20your
%20business
https://www.entrepreneur.com/article/70824#:~:text=Once%20you've%20developed%20your,%2C%20packaging%2C
%20positioning%20and%20people.

Definition of Terms

 Business plan is a written document that describes in detail how a business—usually a new one—is
going to achieve its goals. 
Entrepreneurship is an integrated concept that permeates an individual’s business in an innovative manner.
Entrepreneur is someone who:
o Recognize opportunities where others see chaos or confusion
o Are aggressive catalysts for change within the marketplace
o Challenge the unknown and continuously create the future
Marketing mix- a combination of factors that can be controlled by a company to influence consumers to purchase its
products.
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Module Learning Competencies

GRADE : 11/12
SEMESTER :
SUBJECT TITLE : Entrepreneurship
NO. OF HOURS/SEMESTER : 80 HOURS/SEMESTER
PRE-REQUISITE : NONE

FIRST QUARTER: EIGHT WEEKS

(AUGUST 24- OCTOBER 30, 2020)

  Date by week Topics Sub Topics

AUGUST  Relevance
Q1 24- SEPTEMBER 4, Introduction to the  Key concepts and common competencies
W1-W2 course  Core competencies in Entrepreneurship
2020
 Career opportunities

Q1 Developing of
W3-W8 SEPTEMBER 7-
Business Plan
OCTOBER 16, 2020 

Entrepreneurship

Topic/Lesson Name:
Lesson 1: Introduction
Objectives: The learners will be able to:
1. discuss the relevance of the course;
2. explain the key concepts of common competencies;
3. explain the core competencies in Entrepreneurship; and
4. explore job opportunities for entrepreneurship as a career.

  Date by week Topics Sub Topics

AUGUST Introduction to the course  Relevance

Q1 24-  Key concepts and common competencies
W1- SEPTEMBER  Core competencies in Entrepreneurship
W2 4, 2020  Career opportunities

Introduction:
Some people make a big deal out of the fact that there are many successful businesses founded by entrepreneurs
who do not have a college degree. Some of these individuals actually went to college, but decided to drop out after
spotting a business opportunity. Others came from poor families, and could not afford a college education, but succeeded
in growing their businesses nevertheless. However we must not lose sight of the fact that other equally successful
businesses were founded by individuals who earned their college degrees. Clearly, educational background, while
important, is not the defining element for entrepreneurial success. There are other factors that come into play.
In this chapter, we identify the different types of entrepreneurs. We also describe various stages that entrepreneurs
undergo in implementing their business plans, which usually start as mental constructs or intentions. In this light, we
identify the factors that influence entrepreneurial intentions. After this, we discuss how entrepreneurs formulate their
decisions based on three types of mental processes. Finally, we examine the role of cognitive adaptability in managing
risks brought about by an uncertain and dynamic business environment.
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Motivation:
Do you recognize the faces of these people? Do you know what businesses they started from scratch and still
existing till today? What do you think are their recipes for success? Write your answer in your activity/assessment
notebook.

Instruction:

Entrepreneurship is more than the mere creation of business:

 Seeking opportunities
 Taking risks beyond security
 Having the tenacity to push an idea through to reality

Entrepreneurship is an integrated concept that permeates an individual’s business in an innovative manner.

 It is a foundation and catalyst for economic growth and innovation across nations.

Although each of these definitions views entrepreneurship from a slightly different perspective, they all contain
the following elements:
 Innovation
 Opportunity seeking and exploitation
 Resource mobilizing
 Encountering risks and uncertainties
 Economic and personal rewards

There are a lot of factors that influence the friendliness of a country to entrepreneurs: among these are the
employment regulations, bankruptcy laws, and the tax policies of a country. Culled from various sources, here are
examples of entrepreneurship in these 10 countries:
1. United States- noted to be one of the friendliest countries for entrepreneurs in the world, is home to thousands of
successful entrepreneurs as shown by companies like Apple, Google, Starbucks, Wal-Mart and Walt Disney.
2. China- this emerging country is home to building entrepreneurs who manufacture different products that range
from toys, gadgets, electronics and cars. Most of the new businesses in this country are home grown because of a
new breed of entrepreneurs who realize the potential in their country.
3. Singapore- this is literally a small country that controls a significant portion of the economy in Asia. Many of
their entrepreneurs innovate on existing services for local and international use.
4. Canada- entrepreneurs in Canada are exploring opportunities over the internet by posting regional products
online and selling them using online platforms.
5. India- entrepreneurship plays a dominant role in the country’s economic landscape. India is one of the countries
in the Asia-Pacific rim with a strong base of entrepreneur organizations led by the youth and women.
6. Taiwan- entrepreneurship is encouraged here through the small and medium enterprise incubation centers for the
purpose of nurturing young firms, new products and technologies. There are hundreds of incubators that have
been sponsored by the Taiwan SME Development Fund.
7. Hong Kong- with a knowledge-based economy, Hong Kong utilizes its Human Resources to make its economy
the best possible through entrepreneurship. There are many entrepreneurial endeavours that flourish from the real
estate enterprises, to the retail and food businesses. Hong Kong is known as a ”shopping haven.”
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8. Thailand- the extent of government support to entrepreneurs is very evident in, for example, in its international
airport in Bangkok, where a huge section is subsidized by the Bureau of Small and Medium Enterprises for the
promotion of local products marketed by entrepreneurs.
9. Malaysia- this country is becoming friendlier to entrepreneurs and this is apparent in the number of businesses,
both international and local, which decided to locate in Malaysia. Its current emphasis on tourism as a business
venture for entrepreneurs is gaining popularity.
10. South Korea- South Korea emerged from the Asian financial crisis better than any other country in the region.
The enterprising spirit is quite obvious in such companies as Samsung and Kia that have now become well-known
even outside the country.

Brief History of Entrepreneurship in the Philippines

The Philippines is an entrepreneurial country, where 99.7% of all firms operating in the country are small and medium
enterprises employing 69% of labor force; and 47% of the 803,476 registered establishments are SMEs owned by women.
SMEs and large enterprises are predominantly found in and around Metro Manila, while micro enterprises are relatively
less geographically concentrated.
The government, among its major strategies, is focused on promoting entrepreneurship with the right environment.
Examples of SME-friendly laws are Magna Carta for Small Enterprises and the Barangay Micro-Business Enterprises Act
which provide for incentives to registered BMBEs, such as exemption from minimum wage law, exemption from income
tax, special financing, and technical assistance. The 2004-2010 SME Development Plan identifies the following programs
to promote entrepreneurship:
1. Provision of Business Opportunities
2. Strategic Business Planning, Training and Self-Help Packages to Develop Strategic Business Enterprise in
Selected Areas
3. Product Development and Design Services
4. Support to Start-Up Enterprises in Selected Areas
5. Business Opportunity and Enterprise-Creation Approaches;
6. Entrepreneurships Training Camps and Enterprise Development Programs
7. Business Opportunity Development and Investment Promotion for Innovative Ideas
8. Institutionalization of The SME Opportunities Caravan
9. Franchising Seminars
10. Cooperative Business Development Programs

Although legislation certainly helps, entrepreneurs are also given opportunities for training and promotion and to gain
a wide range of skills and varied experiences, so that they can sustain their firm or establish their own businesses. To date,
programs and services provided for entrepreneurs are relatively adequate. At the same time, schools, NGOs, employers
and associations of entrepreneurs are providing support independently or in condition with the government agencies.

What is an Entrepreneur?
The term entrepreneur comes from the French word entreprendre which means “to undertake.”
Basically an Entrepreneur is someone who:
o Recognize opportunities where others see chaos or confusion
o Are aggressive catalysts for change within the marketplace
o Challenge the unknown and continuously create the future
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Innovation and the Entrepreneur

Innovation:
 is the process by which entrepreneurs convert opportunities into marketable ideas.
 is a combination of the vision to create a good idea and the perseverance and dedication to remain with
the concept through implementation.
 is a key function in the entrepreneurial process.
 is the specific function of entrepreneurship.

Entrepreneurial Action- is a behavior in response to a judgmental decision under uncertainty about a possible
opportunity for profit.

Skills Needed by Successful Entrepreneurs

• Communication skills
• Human relations skills
• Math skills
• Problem-solving & Decision-making skills
• Technical skills
• Basic Business skills

Entrepreneurial Process - it is an entrepreneurial discipline which involves several stages from the awareness of an
opportunity to the realization of a business idea.

5 Steps of the Entrepreneurial Process

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1. Discovery- The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the
market.
Entrepreneurs consider the following:
 Hobbies or Skills
 Consumer Needs and Wants
 Conduct Surveys and Questionnaires
 Study Demographics
2. Concept Development- Entrepreneurs prepare the following in this step:
 Develop a Business Plan- A detailed proposal describing the business idea
 Choose Location for the Business- Is the business online or does it have a physical location for
customers to visit to purchase products, services or combinations.
 Decide if the idea will need a Patent or Trademark
Patent – a government authority or license conferring a right or title for a set period,
especially the sole right to exclude others from making, using or selling an invention.
Trademark – a symbol, word, or words legally registered or established by use as
representing a company or product.
3. Resourcing- The stage in which the entrepreneur identifies and acquires the financial, human, and capital
resources needed for the venture startup, etc.
Entrepreneurs contemplate the following:
 Identify Potential Investors
 Apply for loans, grants and financial assistance
 Hire employees
4. Actualization - The stage in which the entrepreneur operates the business and utilizes resources to
Achieve its goals objectives
Entrepreneurs prepare for the following:
 Grand Opening of the Business
 Day to Day Operations of the Business
5. Harvesting- The stage in which the entrepreneur decides on venture’s future growth, development, or
demise.
Entrepreneurs consider the following:
 Future Plans for the Business:
 Expansion to additional locations
 Company to change structure

Relevance of Entrepreneurship and Entrepreneurs in Economic Development and Society

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Entrepreneurship has an enormous impact on the economy and in the society. Globally, the level of
entrepreneurial activity has contributed significantly to the national level of economic growth of many countries. The
increase in entrepreneurial activities has also initiated changes in the structure of business and society. Specifically
entrepreneurship has these contributions to the economy and society:

Practice

Instruction: answer the following question regarding

the photos on the first part of this lesson. Write your
answer in your activity/assessment notebook.
1. Based on the photos in the first part of the
lesson, what do you think are the
entrepreneurial competencies that those
successful entrepreneurs have in common?
2. Do you think they have fully recognized the
six areas of entrepreneurial competencies?
Why or why not?
3. In your personal life, where do you base
your decisions?
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Enrichment:

Instruction: Describe the kind of

factor that affected decision-
making in each situation. Write
your answer in your
activity/assessment notebook.

1. Cardo immediately rejected

the offer of a new supplier
because he knew that the supply
manager was a longtime rival.
2. Aliana decided to sell her
company’s computer system
because she thinks this is
causing the poor performance of
her company.
3. Teddy decided not yet to
pursue the poultry business
because he first wanted to see
valid information or data if this
type of business would succeed
or not.
4. Flora has witnessed how her
product’s sales declined in the
past due to the change in price.
Now she wanted to know if the
sales will boost this time by
preparing three different product
strategies.
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Values Integration
By the end of this lesson, students will learn the value of CREATIVE THINKING. Regardless of definition of success,
there are a great number of common characteristics that are shared by successful entrepreneurs. Entrepreneurial process
shows that creative thinking is a must have skill of an entrepreneur for the creation of new ideas.

Evaluation:
Instruction: Choose a business enterprise run by an entrepreneur and fill-in the details below. Copy the format
and write your answer in your activity/assessment notebook.

Purpose of business activity and enterprise: Characteristic of an entrepreneur

1.
2.
3.

Risk Reward

Answer Key:
Enrichment (pg17)
1. Affect infusion
2. Attribution Style
3. Knowing Style
4. Counter Factual
Connecting to the next lesson

This unit you have learned the relevance of entrepreneurship in the economic development and society. Next
lesson, you will demonstrate understanding of concepts, underlying principles, and processes of developing a business
plan.

Topic/Lesson Name:
Lesson 1: Developing of Business Plan
Objectives: The learners will be able to:
1. Recognize a potential market
2. Recognize and understand the market
3. Recognize the importance of marketing mix in the development of marketing strategy
4. Demonstrate understanding of the 4Ms of operations

  Date by week Topics Sub Topics

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Q1
W3- SEPTEMBER 7- OCTOBER 16, 2020  Developing of Business
W8 Plan

Introduction:

After recognizing and assessing opportunities, the entrepreneur must formulate his/her attempt to exploit these
opportunities in the form of a business plan. In this lesson, we emphasize the importance of the business plan for a variety
of users. We then proceed to describe the major section of the business plan after identifying the information needed for
each section. We end by providing guidelines on how to present a business plan to relevant stakeholders.

Motivation:
Instruction: Read the article below. Brainstorm some business ideas it can be an improvising of existing business or
creating a whole new business. Write your business ideas in your activity/assessment notebook. Your best idea presented
will be the one you will use for this course.

Perhaps you are an aspiring business owner and you want to start a small business, but you just don’t have any
startup ideas. That’s where brainstorming comes in—it’s a great way to get the creative juices flowing and create a
comfortable space to come up with lots of new ideas all at once, and after a good brainstorming session you can be well
on your way to your own profitable business.

What Is Brainstorming?
Brainstorming is a creative process where a person or group sits down with a problem in mind and
spontaneously contributes solutions to that problem. Brainstorming methods can be as simple as making lists or as
detailed as making a mind map. It usually happens during the beginning stages of a project, and its goal is to end up with a
large number of ideas to help define the problem and all of the possible creative solutions. You can brainstorm using a
whiteboard, online software, or just a piece of paper and a pen.

3 Techniques for Effective Brainstorming Sessions

1. Go for quantity. While brainstorming, you may feel yourself wanting to focus on only a small number of ideas—
try to resist this urge! Coming up with as many of your own ideas as possible will help you unlock new avenues
of thought, and you can keep building off of your old ideas to come up with better ones for even better
brainstorming.
2. Don’t judge the ideas. Creativity can be severely dampened by inhibitions; when you’re worried about the
quality of every idea you have, you often won’t be able to generate enough ideas to really explore your
imagination. For truly effective brainstorming, let yourself think freely and go wild—save the judgments for later.
3. Brainstorm in a group of people. Where possible, try brainstorming with at least one other person. Everyone’s
minds are a little different, and bringing a few team members in to offer ideas from different perspectives is often
the best way to explore ideas you wouldn’t have come up with during individual brainstorming.

6 Steps of Brainstorming
The brainstorming process is the perfect way to generate great business ideas—for business experts and
beginners alike—because it’s all about creative ideation and problem-solving, and it avoids putting limitations or
restraints on your thoughts. If you want to start a new business but you’re not sure what kind of business model to use,
following a few brainstorming steps can help you unlock your imagination and find just the right brilliant idea for a
successful business.

1. Brainstorm Your Purpose

When brainstorming ideas for a business, a great starting point is to find the thing that will keep pushing you
forward, otherwise known as your “why.” Why are you doing this? Why is it important?
There are three pillars of a business’s purpose:
 What you enjoy doing. You want your business to focus on something you enjoy—otherwise, you won’t enjoy
running it. This can go beyond business and encompass hobbies and types of activities, like “telling a story.”
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 What you are good at in life and at work. Ideally, your business should take advantage of the skills that you’ve
already developed—whether that’s something as job-specific as coding or as universal as listening to people. You
may not have the most experience in an industry, but think about this: Are you a person who knows a niche
intimately for another reason? Might the people making products in a specific industry not have your unique ideas
and knowledge about those products? You may know more about what you want to make than all of the people
who are already making products like it.
 How you want to serve the world. The best way to come up with this list is to ask yourself what pain points
you’re aware of—what is the unmet need that you can fill. If you’re having a hard time answering this question,
consider making a log of every product, design, or processes you come across that bothers you, and then offer a
few solutions. During this process, it’s vital that you outline your potential customers, as well—who will you be
serving, and how? Knowing your target audience and target market will help you further define your purpose.
While you’re brainstorming your purpose, you should constantly ask yourself “why”: Why doesn’t a certain
product exist? Why isn’t a rudimentary task done in a more efficient way? Why hasn’t any product or service
within a specific space evolved in a while?
2. Let Your Mind Wander
THINK LIKE A PRO
Give yourself some room to dream by putting yourself in a creative mindset. Go someplace where you know you
won’t be interrupted—for instance, your bedroom, or somewhere in nature—and start by getting quiet. Spend a few
minutes wiping your mind of other tasks and worries. Focus on creating a blank slate upon which to sketch some business
ideas.
If you’re having a hard time finding out where you do your best thinking, try this: Every day for a week, spend 20
minutes brainstorming in seven different places. After the week is over, evaluate which place let you be the most creative.
Once you find the place, spend another week thinking in that space for at least 20 minutes per day. If you realize that you
rarely find yourself in your best thinking space, make a manageable change in your routine to put you there more
regularly. Maybe that means fabricating a commute, or maybe it means foregoing your favorite podcast while you shower
so you can brainstorm ideas instead.

3. Research
Once you have a good list of business ideas, it’s time to start doing some research to hone and focus the ideas. If
you’re just starting out in your industry, then you may not know what questions to even ask about your business, so you
should start by doing some basic research of your industry—do some Google searches of its history, or go to your local
library and take out some books about the field you’re entering. That will prepare you with a knowledge that
manufacturers may not expect from someone just entering their world and could engender some respect.

4. Filter Your Ideas

So, you’ve collected some solid ideas and done some research, but you still need to figure out which one
is your idea so you can start making your business plan.
Three common filters that successful entrepreneurs will use to hone in on their top priorities are time, money, and
resources. You can evaluate each idea based on those priorities to determine which creative ideas are really feasible for
you. To evaluate your ideas, ask yourself these questions of every idea on your list:
 How hard is it going to be to make this product?
 How much will it cost to make?
 How many manufacturers will it take?
 How much will it cost to ship?
 How heavy is the product?
 How big of a team do you need to help you make and sell your product?
You can also use SWOT analysis (strengths, weaknesses, opportunities, and threats) to help evaluate your
brainstorming ideas.

5. Name Your Business

It may seem strange to think about naming so early in the brainstorming process, but there’s a reason a name can
help you early on: when you name something, it makes it feel more real. Giving your business or product a name now can
help give your ideas life and energy.
To come up with some names for your business or product, try playing a little word-association game during your
brainstorming session. Without thinking too hard, focus on your business and quickly write down the first five to ten
 15
words that come to mind. Now play around with those words—combine them or change a letter or two, and see what you
can come up with.

6. Develop Your Idea Before You Share It

Communication and validation are part of human nature. When you come up with an idea you love, you may feel
the need to share it right away with the people closest to you. But sharing your ideas too soon can cause problems: sharing
ideas leads to immediate feedback, and that feedback may not always be helpful, even if it comes from a place of love or
concern. You may be elated about your idea for a new product only to be met with doubt from your friends and family.
If you take the time to really work on and develop your idea—doing the market research, asking yourself all of
the pertinent questions regarding your time, money, and resources—you’ll have thought about all of its potential
successes and pitfalls. That means you’ll have answers ready when friends or family come at you with their skepticism.
What’s more, any negative feedback you might get won’t likely lead to you abandoning your project; you can be
confident in the work you’ve already done.
Instruction:
Starting a Business
Understand the procedures and requirements for starting a business.
1. Develop a Business Plan
A Business Plan is a detailed proposal that describes a new business.
Business Plans are:
a. Presented to potential investors and lenders
b. Most business plans are 30+ pages

Business Plans are used to:

 Obtain Financing
- Banks and Potential Lenders require a business plan
 Helps organize and analyze data critical to new business.
 Provides a start-up proposal
Provides and outline to follow when starting the business.
2. Acquire Finances
Finance the Business
Identify Potential Investors
Examples:
Family and Friends
Other Businesses
Employees
Contact Financial Agencies for loans, grants and financial assistance:
Small Business Administration
Banks / Credit Unions
Insurance Companies

3. Meet Legal Requirements

The Legal Environment
Additional Legal Requirements for some businesses:
Permits, Certifications or Licenses:
an official document giving someone authorization to run their business under the extension of the direction
of the Local, State and Federal Laws.
Contracts:
a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to
be enforceable by law.
Zoning Laws:
specify the areas in which residential, industrial, recreational or commercial activities may take place.
Taxes:
An enforced contribution of funds to state revenue, levied by the government on workers' income and
business profits or added to the cost of some goods, services, and transactions.

Protecting Your Business

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 More Legal Documents to Protect Your Business:
 Trademarks:
 Protects a business’ name / logo.
 Patents:
 Protects the invention of products or processes from theft.
 Copyrights:
 Protects Creative Works: Literary, Musical, Dramatic, Artistic works

Why write a business Plan? Who reads it?

A business plan contains a description of your business, including details about how it will operate, a section on
market research and marketing strategies, an evaluation of your main competitors, and several financial forecasts.

Reasons to Create a Business Plan

Writing a well thought-out and organized business plan dramatically increases your odds of succeeding as an

entrepreneur. A good business plan can help:

 determine whether your business has a chance of making a good profit
 provide an estimate of your start-up costs, and how much you'll need to invest or finance
 convince investors and lenders to fund your business
 provide a revenue estimate (by defining your market -- who your customers will be -- and the percentage of the
market you can expect to reach)
 make money from the start by devising an effective marketing strategy
 compete in the marketplace (through an analysis of what your competition lacks), and
 anticipate potential problems so you can solve them before they become disasters.

If You Need to Raise Money

If you need to raise funds for your venture, it goes without saying that you'll have to write a solid, formal business
plan. Business owners who want to borrow money or attract investors will be successful only if they have well-written,
well-researched business plans. All of your potential lenders or investors will want to understand as much as possible
about how your business will work before deciding whether to back it financially.

The Importance of Financial Forecasts

Predicting and planning your business finances can show potential investors that your business idea will fly. But
preparing financial forecasts is a good idea even if you don't need to raise start-up money.
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The discipline of developing financial projections for your business plan, including an estimate of start-up costs, a
break-even analysis, a profit-and-loss forecast, and a cash flow projection, will help you decide if your business is worth
starting, or if you need to rethink some of your key assumptions.
In other words, a good business plan will convince you that you're doing the right thing -- or not. As any
experienced businessperson will tell you, the business you decide not to start because a financial projection doesn't pencil
out can be more important to your long-term success than the one you bet your economic future on.

What Are the Key Elements of a Business Plan

Major Sections of the Business Plan

Major Sections Typical Content

 Business name and address

Introductory  Names and addresses of business
owners/entrepreneurs
 Nature of the business
 Statement of financing needed
 Statement of confidentiality of the report
(optional)

Executive summary  Highlights of the business plan summarized in
two or three pages
Environmental and industry analysis  Conditions of the general environment
( sociocultural , technological, economic and
political legal condition
 Conditions of the specific environment (supply
demand condition, competition)
Description of the business  Products and/ or services
 Size of the business and core values
 Location of the business and its major physical
assets
 Background of the business owners/entrepreneurs
Production plan  Manufacturing process
 Physical plant
 Machinery and equipment
 Suppliers of raw materials
 Future capital equipment
Operational plan  Description of the company operation
 Flow of orders for goods and services
Marketing plan  Pricing
 Distribution
 Promotion
 Sales forecast
Organizational plan  Form of ownership
 Principal shareholders or partners
 Organizational chart/lines of authority
 Background of the management
 Roles and responsibilities of management team
Financial plan  Assumption
 Pro formal balance sheet
 Cash flow projection
 Sources and uses of fund
 Breakeven analysis
Assessment of risk  Potential risk- internal or external
 18
 Strategies for preventing or minimizing risks
 Response to risk should they occur

Timetable/Milestones  Formal registration of the business

 Completion of product or services design
 Completion of prototypes
 Hiring of initial personnel
 Reaching agreements with suppliers and
distributors
 Actual production
 Initial orders, sales, deliveries
Appendices  Market research data
 Detailed Financial Projections
 Curriculum list from supplier
 Price list from suppliers
 Profile of competitors

Practice:
Instruction: Upon the return of your activity/assessment notebook and knowing what business idea have been
approved, start creating the following part of your business plan. Write it in your activity/assessment notebook or you can
have it computerized. (Format- short bond paper, font size- 12, font type- Times New Romans/Arial, margin- 1)

1. Description of the Business

2. Production Plan
3. Operations Plan

Enrichment:
Instruction: Read the article below. Getting to know your market is one of the most important part of making your
business idea works. Come up with your own Market Segmentation and Customer Demographics based on your own
Market Research. Submit your results. Come up with your marketing plan and strategies.

WHY IS MARKET RESEARCH IMPORTANT FOR YOUR BUSINESS?

Market research provides detailed insights into the competitors; understand customers' pain points & preferences,
latest market trends, consumer buying patterns, economic shifts, and demographics. That’s why smart business owners
never underestimate market research and leverage it to creative effective strategies.

MARKET RESEARCH EXPLAINED

 
If you are wondering, what exactly market research is, and what types of businesses require market research, then
here is your answer. Market research consists of two types of research, primary and secondary and almost every type of
business requires market research in order to be successful.
1 Primary Research
Monitor the effectiveness of sales, existing business practices, the quality of services, and the tools used for
communication. Additionally, it also assesses the current market competition by evaluating the business plans of your
competitors.
 
2 Secondary Researches
Collection of already published data to create a company database that helps in situation analysis. It devises
strategies for benchmarking, and helps in determining the market segments that a company should target.

THE IMPORTANCE OF MARKET RESEARCH

 
With the economy becoming more and more competitive with each passing day, having apt knowledge about the
concerns and preferences of your customers has become integral for any business. Market research is the best way to
 19
increase customer satisfaction, understand the factors that affect your business, and to elevate your performance. Here are
three reasons why market research cannot be ignored:

 
1. Market research can guarantee the success of your marketing campaigns, and in-
turn sales
Market research not only helps in identifying new business opportunities, but also helps in
designing marketing campaigns that will directly target the interest of your potential
consumers and help in increasing sales. Marketing research provides valuable information
about the potential of a particular market segment, during a specific time, and within a
particular age group.

2. Market research can help you keep a tab on your competitors

Marketing research is a good evaluation tool that can be of great use in comparative studies.
You can track your company's progress as well as the growth of your competitors, by
keeping an eye on your competitors. You can devise business strategies that would keep you
ahead of your business rivals.
 
3. Market research can help you minimize loss in your business
With market research, you can reduce the chances of loss to a large extent. Before
launching a product, you can identify potential problems and even determine the
solutions. The research carried out after the launch of a new product can help you find
loopholes and devise plans to counter that loss and increase the profits.

WHY COMPANIES REQUIRE MARKET RESEARCH?

 
Marketing research is needed on a continual basis, if you want to keep up with the latest market trends and gain a
competitive edge in the business market. Understanding market research and using it to your advantage is vital in reaching
out to your target audience and increasing your sales.
Here is why your company should conduct business market research:
 Identify the problem areas in your business
 Understand the needs of existing customers and why they chose your service over competitors
 Identify new business opportunities and changing market trends
 Recognize new areas for expansion, and increase your customer base
 Discover potential customers and their needs, which can be incorporated into your services
 Set achievable targets for business growth, sales, and latest product developments
 Make well-informed market decisions about your services and develop effective strategies


The 7 Ps of Marketing

Once you've developed your marketing strategy, there is a "Seven P Formula" you should use to continually
evaluate and reevaluate your business activities. These seven are: product, price, promotion, place, packaging,
positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these
seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.

Product
To begin with, develop the habit of looking at your product as though you were an outside marketing consultant
brought in to help your company decide whether or not it's in the right business at this time. Ask critical questions such as,
"Is your current product or service, or mix of products and services, appropriate and suitable for the market and the
customers of today?"
Whenever you're having difficulty selling as much of your products or services as you'd like, you need to develop
the habit of assessing your business honestly and asking, "Are these the right products or services for our customers
today?"
Is there any product or service you're offering today that, knowing what you now know, you would not bring out
again today? Compared to your competitors, is your product or service superior in some significant way to anything else
 20
available? If so, what is it? If not, could you develop an area of superiority? Should you be offering this product or service
at all in the current marketplace?

Price
The second P in the formula is price. Develop the habit of continually examining and re-examining the prices of
the products and services you sell to make sure they're still appropriate to the realities of the current market. Sometimes
you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that
the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing
them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a
profit on every sale. Could this be appropriate for you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading your price over a
series of months or years, you can sell far more than you are today, and the interest you can charge will more than make
up for the delay in cash receipts. Sometimes you can combine products and services together with special offers and
special promotions. Sometimes you can include free additional items that cost you very little to produce but make your
prices appear far more attractive to your customers.
In business, as in nature, whenever you experience resistance or frustration in any part of your sales or marketing
plan, be open to revisiting that area. Be open to the possibility that your current pricing structure is not ideal for the
current market. Be open to the need to revise your prices, if necessary, to remain competitive, to survive and thrive in a
fast-changing marketplace.

Promotion
The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the
ways you tell your customers about your products or services and how you then market and sell to them.
Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small
changes in your advertising can lead immediately to higher sales. Experienced copywriters can often increase the response
rate from advertising by 500 percent by simply changing the headline on an advertisement.
Large and small companies in every industry continually experiment with different ways of advertising,
promoting, and selling their products and services. And here is the rule: Whatever method of marketing and sales you're
using today will, sooner or later, stop working. Sometimes it will stop working for reasons you know, and sometimes it
will be for reasons you don't know. In either case, your methods of marketing and sales will eventually stop working, and
you'll have to develop new sales, marketing and advertising approaches, offerings, and strategies.

Place
The fourth P in the marketing mix is the place where your product or service is actually sold. Develop the habit of
reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place
can lead to a rapid increase in sales.
You can sell your product in many different places. Some companies use direct selling, sending their salespeople
out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order.
Some sell at trade shows or in retail establishments. Some sell in joint ventures with other similar products or services.
Some companies use manufacturers' representatives or distributors. Many companies use a combination of one or more of
these methods.
In each case, the entrepreneur must make the right choice about the very best location or place for the customer to
receive essential buying information on the product or service needed to make a buying decision. What is yours? In what
way should you change it? Where else could you offer your products or services?

Packaging
The fifth element in the marketing mix is the packaging. Develop the habit of standing back and looking at every
visual element in the packaging of your product or service through the eyes of a critical prospect. Remember, people form
their first impression about you within the first 30 seconds of seeing you or some element of your company. Small
improvements in the packaging or external appearance of your product or service can often lead to completely different
reactions from your customers.
With regard to the packaging of your company, your product or service, you should think in terms of everything
that the customer sees from the first moment of contact with your company all the way through the purchasing process.
 21
Packaging refers to the way your product or service appears from the outside. Packaging also refers to your people and
how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every
single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your
customer's confidence about dealing with you.

Positioning
The next P is positioning. You should develop the habit of thinking continually about how you are positioned in
the hearts and minds of your customers. How do people think and talk about you when you're not present? How do people
think and talk about your company? What positioning do you have in your market, in terms of the specific words people
use when they describe you and your offerings to others?
Develop the habit of thinking about how you could improve your positioning. Begin by determining the position
you'd like to have. If you could create the ideal impression in the hearts and minds of your customers, what would it be?
What would you have to do in every customer interaction to get your customers to think and talk about in that specific
way? What changes do you need to make in the way interact with customers today in order to be seen as the very best
choice for your customers of tomorrow?

People
The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside
of your business who are responsible for every element of your sales, marketing strategies, and activities.
It's amazing how many entrepreneurs and business people will work extremely hard to think through every
element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision
and policy has to be carried out by a specific person, in a specific way. Your ability to select, recruit, hire and retain the
proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put
together.
To be successful in business, you must develop the habit of thinking in terms of exactly who is going to carry out
each task and responsibility. In many cases, it's not possible to move forward until you can attract and put the right person
into the right position. Many of the best business plans ever developed sit on shelves today because the [people who
created them could not find the key people who could execute those plans.

Values Integration:
In this lesson, you have learned how to build
your own business. You have learned the value of
entrepreneurial spirit.

Evaluation:

Instruction: Write your own business plan based on your approved business ideas. Follow the following
components of a Business Plan:

Title page
Acknowledgement
Table of Contents

I. Executive Summary V. Operational Plan

II. Product and Services VI. Management Plan
III. Organizational Plan VII. Financial Plan
IV. Market Analysis and Marketing Plan VIII. Supporting documents/Appendices

Submit the highlighted part first. Financial Plan will follow upon implementation of your business plan.
 22
Follow the following format when writing your business plan:
 Short bond paper
 Short brown folder
 Times New Romans/Arial
 12 Font size
 Margin- 1”
 Deadline: September 25, 2020
 Revisions should be done before October 16, 2020

End of First Quarter