12

ENTREPRENEURSHIP
Learning Activity Sheets
Quarter 4
4 Ms of Operations
Product/ Service Development
Business Model
Forecast the Revenues of the Business
Starting a Business
Business Plan Implementation
Bookkeeping Tasks
Prepare Financial Statements
 ENTREPRENEURSHIP
Week 1
Name of the Learner: Grade Level:
Section: Date:

4 Ms of Operations

Background Information for Learners

Management is the art of getting things done with and through other people. It is
imperative for an entrepreneur to know about how to keep the business running with the least
effort (Edralin 2019). Production is an activity that converts materials into useful forms.
Operations Management is how organizations produce or deliver the goods and services that
provide the reason for their existence (YGOAL 2016). To understand more about operations
management you may watch this video at Youtube https://bit.ly/3br0XeY.

Lesson 1: Demonstrate Understanding of the 4Ms of Operations

The 4M’s of operations cover the input portions. These 4 M’s are composed of
Manpower, Method, Machine and Materials. These four domains are also applicable to
business opportunities since it is in essence-tied to manufacturing as well.
Fig. 1.

INPUT PROCESS
Materials OUTPUT
Materials
Manpower (Final
Manpower Method Product)
Method Machine
Machine

Manpower is the worker or human workforce involved in the manufacturing process of

business. People run factories and service establishments. Even factories with the most
advanced and automated machines still require good people to operate and maintain the
machine. Hiring the right people is the first step to good operations management (Morato
2017). Some of the criteria that an entrepreneur to consider in hiring workforce:
a. Educational qualifications and experience required for the job
b. Status of employment (permanent or contractual)
c. Number of employees/ staffs needed in the job
d. Skills and expertise required
e. Availability of potential workers in the community
f. Salary requirements and other mandatory benefits (Aduana 2017).
Method refers to the system and step by step process in the business. The process or
technique of converting raw materials to finished products. Operations proper implements and
runs the factory or service shop that converts the input into output (Morato 2017). Wrong
methods can jeopardize the operations because it may not be able to attain the results. The
selection of the method of production is dependent on some factors:
● Product to produce
● Mode of production
● Manufacturing equipment to use, and
● Required skills to do the work.
Machines are also important in the operations of the business. It refers to the
manufacturing equipment used in the production of goods or delivery of services. Without
proper equipment, business will not be able to perform the needed tasks efficiently and fast.
Selecting an equipment to purchase, the entrepreneur may consider the following important
elements:
● Types of products to be produced
● Production system to be adopted
● Cost of the equipment
● Capacity of the equipment
● Availability of spare parts in the local market
● Efficiency and durability of the equipment
● Skills require in operating the equipment
Materials simply refers to the raw materials needed in the production or manufacturing of
a product. Sourcing of raw materials is critical in any business, the entrepreneur would want to
acquire the cheapest possible price at a highest quality. The entrepreneur may consider the
following factors in the selection of raw materials:
● Cost
● Quality
● Availability
● Credibility of suppliers
● Waste that the raw materials may produce
Understanding more about 4 Ms of operations, you may watch this video
http://bit.ly/4MsOperations.

Describe the 4Ms of operations in relation to the business opportunity

Operations Management refers to the activities, decisions and responsibilities of
managing the resources, which are dedicated to the production and delivery of products and
services. It can contribute to the success of business by using available resources to effectively
produce products and services in a way that satisfies the customers. Production Management
is important in the business firm (YGOAL 2016):
● It helps the business to achieve all its objectives. Therefore, the firm may increase its
sales.
● It helps the business to satisfy its customers. Therefore, it increases the firm's
reputation, goodwill and image.
● It helps to introduce new products in the market. Therefore, the firm can develop and
offer newer and better quality products.
 ● It helps the business to support other functional areas in the organization such as
marketing, finance and human resource. Therefore, marketing can find an easier means
to sell products and services, finance can get more funds due to increased sales and
human resources can effectively manage the workforce due to better performance of
the production management.
● It helps the business to face competition. Therefore, the firm can produce products of
right quantity, right quality, appropriate price and at the right time.
● It helps the business to facilitate optimum utilization of resources such as manpower,
machines, methods and materials. Therefore, the firm can meet the objectives.
● It helps the business to reduce the cost of producing products and services. Therefore,
the firm can achieve cost efficiency objectives.
● It helps the business to expand and grow. Therefore, the firm can earn higher profits.
● It helps the business to generate employment.
● It helps the business to boost the economy.
For more information, you may watch this video https://bit.ly/32Vp2Xy.

Learning Competency with Code

1. Demonstrate understanding of the 4Ms of Operations (Machine, Manpower,
Method, Materials)
2. Describe the 4Ms of operations in relation to the business opportunity
TLE_ICTAN11/12EM-Ia-2

Activities
Day 1
Activity 1: WORD SEARCH
Direction: Search for the ten (10) words related to 4 Ms of Operations in the box below. Clues
are provided. Encircle the word in the box and write it before the clue.

1. A manufacturing equipment used in the productions of goods or delivery of services.

2. The process of technique of converting raw materials to finished product.
3. The human workforce in the manufacturing process of business.
4. The raw materials needed in the production process.
 5. An activity that converts materials into useful forms.
6. What is put in, taken in, or operated on by any process or system
7. A series of actions or steps taken in order to achieve a particular end.
8. Finished product.
9. The art of getting things done with and through other people.
10. The actions and decisions made by participants and members of a business that affect
the production, distribution, service, and management.

Day 2
Activity 2: Analyze the picture. Identify the 4M’s of Operations in the picture.
Example:

Source: https://bit.ly/3h1YbOw
MATERIALS Meat
MANPOWER Cook
METHOD Frying
MACHINE Gas Stove, Fying
pan, and Spatula

A.
MATERIALS
MANPOWER
METHOD
MACHINE
Source:
https://bit.ly/335ykQ
B.
MATERIALS
MANPOWER
METHOD
Source:https://bit.ly/2R0GDb7 MACHINE
C.
MATERIALS
MANPOWER
METHOD
Source: https://bit.ly/3btwGw6 MACHINE

Activity 3: Essay (8 points)

Direction: Based on the three pictures, In Input-Process-Output (IPO) model, when is
manpower, method, materials and machine used as an input and as a process? Explain your
answer.

EXCELLENT VERY GOOD AVERAGE

5 4 3

Ideas This paper is clear and focused. It holds This paper is mostly The writer is beginning to
the reader's attention. Relevant details and focused, and has some define the topic, even though
quotes enrich the central theme. good details and development is still basic or
quotes. general.
Organization The organization enhances and shows the Paragraphs are mostly The organizational structure
central idea or theme. The order, structure organized, in order, and is strong enough to move the
of information is compelling and moves make sense to the reader through the text
the reader through the text. reader. without too much confusion.
Sentence Fluency The writing has an easy flow, rhythm, and The writing mostly The text hums along with a
cadence. Sentences are well organized flows, and usually steady beat, but tends to be
with strong and varied structure that invites oral reading. more businesslike than
invites expressive oral reading. musical, more mechanical
than fluid.

Day 3-4
Activity 4: Create an Infographics (Flyers or Leaflets)
Instructions:
In starting a business, getting the right people is not quite easy. Imagine that you are a
Human Resource Manager of SM Clark during this Pandemic Covid 19:
1. What are your suggested programs to protect your staff when they are in duty?
2. What are your strategies and techniques to motivate the employees to work?

Rubrics
Excellent Acceptable Minimal Unacceptable
Criteria
5 4 3 2
The poster includes All required elements All but 1 of the required Several required
REQUIRED all required elements are included on the elements are included elements were missing.
ELEMENTS as well as additional poster. on the poster.
information
 All items of Almost all items of Many items of Labels are too small to
importance on the importance on the poster importance on the poster view or no important
poster are clearly are clearly labeled with are clearly labeled with items were labeled.
LABELS
labeled with labels labels that can read from labels that can read from
that can read from at at least 3 feet away. at least 3 feet away.
least 3 feet away.

All graphics relate to All graphics related to All graphics relate to the Graphics do not relate to
the topic and make it the topic and most make topic. One or two the topic or several
GRAPHICS- easier to understand. it easier to understand. borrowed graphics have borrowed graphics do
RELEVANCE All borrowed graphics Some borrowed a source citation. not have a source
have a source citation. graphics have a source citation.
citation.

The poster is The poster is attractive The poster is acceptably The poster is
exceptionally in terms of design, attractive though it may distractingly messy or
ATTRACRIVENESS attractive in terms of layout, and neatness. be a bit messy. very poorly designed. It
design, layout, and is not attractive
neatness.

There are no There are 1-2 There are 3-4 There are more than 4
grammatical/mechani grammatical/mechanical grammatical/mechanical grammatical/mechanical
GRAMMAR
cal mistakes on the mistakes on the poster mistakes on the poster mistakes on the poster
poster

Source: (www.uen.org n.d.)-

References
Aduana, Nick L. 2017. "Entrepreneurship in Philippine Setting for Senior High School." In Entrepreneurship in Philippine Setting for Senior
High School, by Nick L. Aduana, 3-5. Quezon City: C & E Publishing , Inc.

Aduana, Nick L. 2017. "Entrepreneurship in Philippine Setting for Senior High School." In Entrepreneurship in Philippine Setting for Senior
High School, by Nick L. Aduana, 128-133. Quezon City: C and E Publishing, Inc.

Edralin, Divina M. 2019. "Entrepreneurship Revised Edition." In Entrepreneurship Revised Edition, by Divina M. Edralin, 106-117. Quezon
City: Vibal Group, Inc.

Morato, Dr. Eduardo Jr. 2017. "Entrepreneurship First Edition." In Entrepreneurship First Edition, by Dr. Eduardo Jr. Morato, 138-147.
Quezon City: Rex Bookstore, Inc.

n.d. "www.uen.org." uen.org. Accessed 08 20, 2020. https://www.uen.org/lessonplan/download/18726?lessonId=12365&s.

2016. In BPI-SHAPE Entrepreneurship resource Book, by YGOAL, 128-139. Makati City: BPI Foundation.

Answer Key

Activity 1: WORD SEARCH

1. Machine
2. Method
3. Manpower
4. Materials
5. Production
6. Input
7. Process
8. Output
9. Management
10. Operation
Activity 2: Analyze the picture. Identify the 4M’s of Operations in the picture.
A.
MATERIALS Cloth

MANPOWER Tailor/ Dressmaker

METHOD Sewing

MACHINE Sewing MAchine

MATERIALS Mud

MANPOWER Pot maker

METHOD Pottery

MACHINE Pot Maker Machine

B.

MATERIALS Car parts

MANPOWER Factory worker/ Machine

operator
METHOD Assembling

MACHINE Conveyor

C.

Activity 3: Essay

- Learners may have a different answer

- Consider the given rubrics to evaluate the learner’s answer.

Activity 4: Infograpics

- Learners may have a different answer

- Consider the given rubrics to evaluate the learner’s answer.
 ENTREPRENEURSHIP
Week 2
Name of the Learner: Grade Level:
Section: Date:

Product/ Service Development

Background Information for Learners

Product/ Service development refers to all stages involved in bringing a product from
concept or idea. It is the process of developing, testing, and commercializing a product/ service
with the ultimate objective of solving the problem of the primary target market. Product/
service development does not mean it is a product management. Product development is the
entire product’s journey including:
● Identifying market needs
● Conceptualizing and designing the product
● Building the product road map
● Developing a Minimum Viable Product
● Releasing the Minimum Viable Product
● Iterating based on user feedback
Before a new product/ service is introduced in the market, refining the product/ service
should be the first to focus and validate the market acceptability.
Developing a Product or Service Description
The product/ service production describes how a product/ service works and how it
benefits the customers. A clear product/ service description is important and this will serve as
the blueprint of all business operations. Developing a product/ service description is how you
will convince the customer to buy your product. It is now one of the most important aspects of
an online shop on how to convince customers to click the “Add to Cart” (Patell n.d.). Here are
the three things to consider in developing a product/ service description that sell:
1. TARGET AUDIENCE
- A good product/ service description starts with a solid buyer persona (break down
of the characteristics of your potential customers. Identify which features would be
of most interest to your potential buyers. Put yourself in the
customer’s shoes where the product/ service description
will address (Matson 2020).
2. PRODUCT BENEFITS
- Potential customers want to
know how they benefit them of
your product/ service. Developing a
product/service description, it is
important to write the factual information and features of
the product/ service highlighting what your potential customer’s needs and address
the buyer’s problems and how they can improve their lives (Matson 2020).
3. POWER WORDS BUT REALISTIC
- There are certain words and phrases that naturally elicit an
emotional response in humans. Old statements such as
“World-class service or product excellence” may not
matter to customers at all (Matson 2020).
Creating a Prototype of the Product or Service
A prototype is a preliminary model or sample of a new product or service that is created
to test a product concept or service process.
What exactly does a prototype look like?
- Depends on the idea
- Depends on your budget
- Depends on your goals
Advantages of Creating a Product/ Service Prototype (Tamara n.d.):
1. Enables the entrepreneur to engage in trial-and-error, provides room for
improvements, and refines the functionality of the product design or service
process.
2. Provides the entrepreneur window to test the performance and specifications of
various materials and service processes.
3. Helps the entrepreneur effectively describe the product or service to the product
team.
4. Elicits respect from key stakeholders and customers. It gives credibility to the
entrepreneur.
Four Steps in Creating Product/ Service Prototype (Nelson 2016)
1. CONCEPT SKETCH
- Draw your idea to help you visualize your prototype in greater
detail
(Dom 2017)
 2. VIRTUAL PROTOTYPE
- Create a digital sketch of your idea. If you are not skilled with computer
drawing and rendering tools, professional graphic designers or prototype
designers can assist you with this step.
(Humane Interface 2016)
3. PHYSICAL PROTOTYPE
- Build a physical prototype. Once your first prototype is built, you
may find flaws that need to correct before you seek a patent. You may
need to build several prototypes to get a good one done.
(Coleman 2017)
4. LOCATE A MANUFACTURER
- Locate a manufacturer that can produce your product at a
profitable price. If your idea is going to be profitable, you need to be
able to build it at a cost that is low enough that you can cover
expenses without cutting too far into your revenue.

(Study.com 2003-2020)
Watching this video https://www.youtube.com/watch?v=43N3l3laWGE may give you
an idea on how to create a Product/ Service Prototype.
Testing the Product Prototype
Testing the prototype is a vital process before an actual product or service is launched
to the market. It will uncover the final loopholes that need to be fixed before commercialization.
It gives the entrepreneur a leeway to examine and scrutinize the prototype and provide feedback
as to what can be improved before the launch. These improvements and changes must be
completed first before moving forward to the next step.
Methods applied in Testing the Product Prototype
1. Focus Group Discussion – The participants will provide
relevant insights about the new product or service. The
objective of the FGD is to identify errors, deficiencies,
and issues that may impede the success of the product.
Participants also need to provide suggestions and
practical solutions on how to improve these
deficiencies.
2. Legality and ethical test – Prior to launching, the
entrepreneur must ensure that the product or service
complies with all relevant laws and regulations and has a
necessary license or permit to operate a particular business.
For example, food products must be cleared first with the
Bureau of food and drugs (BFAD) before they are offered to
the public. The entrepreneur must also make sure that the
manufacturing/production of goods or offering of the service
does not generate ethical issues such as being threats to
health, safety, and environment.
 3. Safety test – the entrepreneur must ensure that the
product is safe to use, safe to be consumed (food
and beverages), and safe to be applied (cosmetic
products). The product should not in any way
harm the customer or put the customer in peculiar
situations. in services, the entrepreneur must
ensure that the processes to be performed by the
service provider must not be detrimental to the
safety and health of the customer.
4. Product costing test – the entrepreneur must
examine every stage of the manufacturing process or
every process of the service blueprint to evaluate and
finalize the cost involved. This is the time when the
entrepreneur can match the expected costs versus his or
her budget. Modification in the manufacturing process
or service blueprint can still be made at this point to
align with the cost objective of the entrepreneur.

5. Component test – Each component of the

product or service must be tested
independently to identify component failures
for goods or service failures for services. Any
failure identified must be redesigned and
tested again until it becomes fully operational
and functional.

6. Competitors’ product/service test – the entrepreneur

must test a similar line of products or the competitors’
product or service itself to compare and get the best
practices to be applied to the new product or service.

Validation of Market Acceptability

Validation of Market Acceptability is the process of finding out if the intended primary
target will be buying the product or availing the service. Market acceptability is a critical factor
that the entrepreneur must validate before launching the product or service, because this can
strongly suggest if the business will be successful or not. It either validates or disconfirms the
perception of the entrepreneur about the suitability of the chosen primary target market.
It also tests whether the value proposition and unique selling proposition are appropriate
or there is a need to improve on them.
Ways to Validate your Product Acceptability (Kular 2018)
1. Sales - Nothing is more important than customers seeing the value in your product
and exchanging money for it.
 2. Research – It can be useful when you are still in the ideation stage. Look also for
your competition. Competition is good, because it confirms that there is existing
demand for what you plan to sell.
3. Demand and Supply - Analyze demand and search volume.
4. Campaign - Market research can be useful, but real product validation requires
paying customers.
5. Feedback - Meet your customer in person, you’ll benefit by getting to talk to
potential customers, seeing their initial reactions to your product, and finding out if
they are willing to spend money on it.
Select/ Pinpoint Potential Suppliers of Raw Materials and Other Inputs Necessary for the
Production of Product/ Servcie

Selecting a supplier is the process of looking for a potential supplier to acquire the necessary
materials to support the outputs of organizations. Choosing the right supplier scanning a series
of price lists, value for money, quality, reliability and service.

Identify your suppliers. Set the criteria to help you find the right supplier, you may consider
the Cost, Price, Reliability, Stability, Location, Quality & Safety, Delivery, Service, Social
Responsibility, Convenience, Simplicity, Risk and Agility (Business Queensland 2017).

Discuss the value/ supply chain in relation to the business enterprise

Value chain is the whole series of activities that create and build value at every step. A
process in which a company adds value to its raw materials to produce products eventually sold
to consumers. It gives companies a competitive advantage in the industry, while the supply
chain leads to overall customer satisfaction. There are five steps in the value chain process
(Tarver 2020):
1. Inbound Logistics- Receiving, warehousing, and inventory control.
2. Operations- Value-creating activities that transform inputs into products, such
as assembly and manufacturing.
3. Outbound Logistics- Activities required to get a finished product to a customer.
These include warehousing, inventory management, order fulfillment, and
shipping.
4. Marketing and Sales- Activities associated with getting a buyer to purchase a
product.
5. Service- Activities that maintain and enhance a product's value, such as
customer support and warranty service.

Recruit qualified people for one's business enterprise

Your success in the business will depend on your ability to put together a team of highly
qualified people who are committed to the goals and objectives of your firm. If your business
is on a startup stage, you need to recruit an employee who (Kauffman Entrepreneurs 2005):
· embody the company's values
· work hard and work smart
 · have the specific skills required
· learn quickly when new skills are needed
· able to work with little supervision
· take initiative to make things happen
· comfortable in the uncertainty of an entrepreneurial situation
· are flexible to business needs and changing requirements

Learning Competency with Code

1. Develop a product description
2. Create a prototype of the product
3. Test the product prototype
4. Validate the service description of the product with potential suppliers of raw
materials and other inputs necessary of the product for service.
5. Select/ pinpoint potential suppliers of raw materials and other inputs necessary
for the production of product or service
6. Discuss the value/supply chain in relation to the business enterprise
7. Recruit qualified people for one's business enterprise
TLE_ICTAN11/12EM-Ia-2
Activities
Day 1
Activity 1: Read the statements comprehensively. Identify if it is Product Features or Product
Benefits. Source: https://shopee.ph/
1. With the proper ingredients, success comes naturally. Here is everything you need to
make a distinctive tasting sausage stick that will be sure to tingle your taste buds. Comes
with complete instructions.

2. YAS GIRL! Walk in this navy velvet set and expect all eyes on you. Designed with a
one shoulder unique crop top and fitted capri pants.

3. 4.5V ~ 5.5V from the USB port; Without drive javascript devices: void (0);Compatible
with USB 1.1 / 2.0; Operating Temperature: -10 to + 55Deg.C; Storage Temperature: -
20 to + 55Deg.C; More than 12 years of data storage

4. The most effective way to lose weight without Diet and Exercise! Without experiencing
LBM, Headaches and Palpitation. Reduces food cravings and Increases fluid intake.
Each box contains 5 sachets of Skinny Coffee good for 5 days. It should be taken in the
morning 15-30 minutes before breakfast.

5. Brand: VEGER/ Model: VP2016/ Capacity: 20000mAh (74WH)/ Colors: Black/White/

Dimension: 147.8*67.5*27.5MM/ Micro Input: 5V/2.0A/ Type-C Input: 5V/2.0A/
USB Output 1: 5V/1.0A (IQ Smart Recognition)/ USB Output 2: 5V/2.1A (IQ Smart
Identification)/ LED Digital Power Indicator/ Li-polymer Battery/ Weight: 412g
 6. Whether it's for work or for leisure, you deserve a quick and reliable home internet
connection. Look no further because Globe At Home Prepaid WiFi is finally here!.
With its improved WiFi connection, wide internet coverage, and ready-to-use freebie
and features, your home online experience will never be the same again.

7. High quality 4mm drive unit super bass, bright treble; Lightweight foldable structure;
Can turn into a wired headphone in one second.

8. Delivering heart-thumping lows and clear-as-day highs, these wireless headphones are
true standouts in the new 0917 Series Two collection.

9. "Who said you can’t look stylish while staying safe? Channel your brooding K-drama
lead with this personal protective bucket hat.

10. Hat opening: 24 in; face shield: 121/ 4x10p; Bucket hat is made of soft brushed twill
fabric; face shield is made of PVC plastic; Detachable face shield; Adjustable strap to
keep the hat in place"

Day 2
Activity 2: Did you answer correctly the Activity 1? Congratulations! Now, using the
statements 1-10 from Activity 1, kindly identify the target audience of the product/ service.
Day 3-4
Activity 3: Create a concept sketch or prototype drawing of your product idea.
Rubric for Prototype drawing
CRITERIA EXCELLENT (20) SATISFACTORY (15) NEEDS IMPROVEMENT (10) SCORE

Appropriate medium in Clearly identifies a range Applies selected medium Uses selected medium inaccurately
prototype drawings to of possible alternative to perform the task with to perform task ineffectively and
perform tasks. medium to create an some efficiency and inefficiently, while demonstrating
understanding of the effectiveness. Displays only a minimal understanding of
product and chooses the understanding of the purpose and results
most appropriate to results.
perform the task

Development of work Students did preliminary Students did some Students just began working without
drawings to get an idea of planning ahead of time to thinking out different possibilities.
which way to continue develop ideas

Construction or drawings Evidence of thorough Evidence of work done Students left some stuff undone due
work appropriate to the on the project. Project is to lack of work or time.
time allotted, drawings or seen as complete.
prototype were complete
with attention to detail
 Aesthetics Drawings are crisp and Drawings or prototypes Drawings or prototypes are unsightly
clean with measurements are clean and neat, but and messy.
labeled properly. not particularly attractive
Prototype does not show to the eye.
glue marks or other
evidence of sloppiness.

Scale Drawings or prototype are Drawings or prototypes There was no attempt to make
made to scale with a were attempted to be drawings or prototypes to scale
legend provided made at scale, with some
issues.

Source: rubricprototype.pdf

References

Business Queensland. 2017. Queensland Government. 18 July. Accessed September 8, 2020. https://www.business.qld.gov.au/starting-
business/planning/suppliers/finding-suppliers/choosing.

Kular, Nimi. 2018. Shopify.com. August 30. Accessed September 7, 2020. https://www.shopify.com.ph/blog/validate-product-ideas.

2005. Kauffman Entrepreneurs. November 11. Accessed September 9, 2020.

https://www.entrepreneurship.org/articles/2005/11/recruiting-and-hiring-capable-selfmotivated-people.

Matson, Marqis. 2020. "Referral Candy Blog." referralcandy.com. July. Accessed September 7, 2020.
https://www.referralcandy.com/blog/product-descriptions-that-sell/.

Nelson, Cherie. 2016. "athgo." athgo.org. September 13. Accessed September 7, 2020. https://athgo.org/4-steps-build-products-first-
prototype/.

Patell, Neil. n.d. "The All-In-One SEO Tool." Neilpatel.com. Accessed September 3, 2020. https://neilpatel.com/blog/write-better-product-
descriptions/.

Tamara, Monosoff. n.d. "Entrepreneur Asia PAcific." Entrepreneur Asia Pacific. Accessed September 7, 2020.
https://www.entrepreneur.com/article/80678.

Tarver, Evan. 2020. Investopedia. March 24. Accessed September 9, 2020. https://bit.ly/2ZkpDBh.

Photo References

Coleman, Ben. 2017. Sitepoint. October 28. Accessed September 8, 2020. https://www.sitepoint.com/how-to-make-paper-prototypes/.

Dom, Liz. 2017. Medium.com. 30 March. Accessed September 8, 2020. https://medium.com/signl-labs/prototyping-for-design-

e7cbba1fa927.

2016. Humane Interface. Accessed September 8, 2020. https://www.humaneinterface.net/article/advanced-mobile-prototyping-in-axure.

2003-2020. Study.com. Accessed September 8, 2020. https://study.com/academy/lesson/what-is-software-prototyping-definition-models-

tools.html.

Answer Key

Activity 1: Product Benefits or Product Features

1. Product Benefits 6. Product Features

2. Product Benefits 7. Product Features
3. Product Features 8. Product Benefits
4. Product Benefits 9. Product Benefits
5. Product Features 10. Product Features

Activity 2: Identify Target Audience

1. Sausage/ Hot Dog lovers 6. Online Teacher, Online Seller, Students who undergo online class
 2. Ladies 7. Online Teacher, Online Seller, Students who undergo online class
3. Mobile phone owners/ Laptop/ PC owners 8. Online Teacher, Online Seller, Students who undergo online class
4. Individuals aiming for weight loss 9. Kdrama fanatics, Frontliners, Individuals who is outside home,
5. Mobile phone owners who are travelers Hospital staffs
10.Kdrama fanatics, Frontliners, Individuals who is outside home
Hospital staffs

Activity 3: Prototype Drawing

- Learners may have a different answer

- Consider the given rubrics to evaluate the learner’s answer.

ENTREPRENEURSHIP
Week 3
Name of the Learner: Grade Level:
Section: Date:

Business Model

Background Information for Learners

What is a Business Model?
Business model is a description of how your business makes money. It is an explanation
of how you deliver value to your customers at an appropriate cost. Models generally include
information like products or services the business plans to sell, target markets, and any
anticipated expenses. It acts as the blueprint of the business and a roadmap for its success or
failure as it explains how the business creates and captures value through its decisions and
processes.
According to management guru Peter Drucker:
“A business model is supposed to answer who your customer is, what value you can create/add
for the customer and how you can do that at reasonable costs (Das 2020).” In their simplest
forms, business models can be broken into three parts (Parsons n.d.):
● Everything it takes to make something: design, raw materials, manufacturing, labor,
and so on.
● Everything it takes to sell that thing: marketing, distribution, delivering a service, and
processing the sale.
● How and what the customer pays: pricing strategy, payment methods, payment timing,
and so on.

Different Kinds of Business Model (Parsons n.d.)

1. Advertising – You have to satisfy your two customer groups: your readers or
viewers and your advertisers. Examples YouTube
 2. Affiliate – Uses links embedded in content instead of visual advertisements that are
easily identifiable. For example, if you run a book review website, you could embed
links to Amazon within your reviews. Examples; Top TenReviews.com
3. Brokerage – Connects buyers and sellers and helps facilitate a transaction. Example:
Real Estate Agency
4. Customization/ Concierge- Take existing products/ services and add a custom
element to the transaction that makes every sale unique for the given customer.
Example Nike Customized sneakers
5. Crowdsourcing – Frequently paired to Advertising models to generate revenue.
Providing the right rewards to entice the crowd is the key to successful
crowdsourcing. Example: YouTube
6. Franchise – Common in the Restaurant Industry. You are selling the recipe for
starting and running a successful business to someone else. Example: Jollibee
7. Leasing – Like renting, at the end of a lease agreement, the customer needs to return
the product. Example: Condominium, Cars
8. Marketplace – Allow sellers to list items for sale and provide customers with easy
tools for connecting to sellers. Example: eBay, Shoppee
9. Subscription – Consumers get charged a subscription fee to get access to service.
Example: Netflix
10. Pay-As-You-Go – Customers get charged for actual usage at the end of the billing
period. Water or Electric Companies

Develop Business Model

Business models are important for both new and established businesses. In developing
business models, entrepreneurs must adapt the dynamics of traffic lights. These are the three
“green lights” or the positive signals that can help entrepreneurs to develop ideal business
models and eventually succeed. On the other hand, there are three “red lights’ or negative
signals that entrepreneurs must avoid.
Green Lights
▪ Target high value customers – someone who is easy to find, willing to pay a price that
will reasonably profit the entrepreneur, easy to persuade with the least promotional
effect, and someone who can join the bandwagon of customers that, when consolidated,
can generate a substantial amount of revenues aligned with the profit objectives of the
entrepreneur.
▪ Offer products or services with great value – The value proposition and unique selling
proposition should always kick in. The entrepreneur must position the unique attributes
of the product/ service. The entrepreneur must also devise an efficient distribution
system where the flow of goods/ services delivery is convenient, fast and available
when needed, and consider the influx of technological advancements such as the
internet, and third party outsourcing.
▪ Offer products or services with reasonable profit – Increase markup and decrease
operation cost. The entrepreneur should devise an efficient distribution system, lessen
unnecessary manpower efforts, apply lean manufacturing processes, and add support
products or auxiliary services that can increase revenue without adding substantial cost.
 Red Lights
▪ Satisfying the customer becomes too costly and irrational – The entrepreneur must
calculate the cost and profit associated with serving the customer before pursuing the
business. In marketing, the term “lifetime value of a customer” was coined to
understand the potential value that customer can bring to the business in the long run,
but there are obvious red flags which are collectively called customer satisfaction costs:
(1) Warranty because some products are as sturdy as they should be. (2)After sales
costs- some products or services require extensive technical support, installation and
customer service.
▪ Being a market leader is difficult to sustain – If there are major customers purchasing
the entrepreneur’s product or services. If there are major players in the industry that
control the majority of the distribution network. If technology has changed the way the
entrepreneur operates the business. If technology replaces the need for the product/
service, and if the competitors can easily tap the market.
▪ Return on Investment (ROI) takes too long and too small – If the reports say that ROI
is less than 25% in the first three years of business operations. If there is additional
capital for the production. Only less than 50% of the capital required will be allocated
to revenue-generating activities. If the present capacity is also incapable to produce or
handle new commitments. If there is an uncontrollable industry factor.

Components of Business Model Canvas

Source: http://bit.ly/Keypartners
A. Value Proposition – A description of the goods or
services that a company offers and why they are desirable
to customers. It is a promise of value to be delivered. It
summarizes why a customer should buy a product or use a
service.
Example: “The number one bottled water brand by volume
Nestle Pure Life Purified Water enhanced with Minerals
for Taste offers healthy hydration in a variety of sizes and
is committed to helping families live a healthy, active lifestyle.”
Unique Selling Proposition (USP) - A consideration presented by the seller as the
reason one product or service is different and better from another product or service.
You can include the Product characteristics, Price Structure, Placement Strategy and
Promotional Strategy.
Example: “Pizza delivered in 30 minutes or it’s Free!” – Domino’s Pizza
 Tagline – A short, memorable phrase that is used throughout your marketing. It
should convey the main sentiment or feeling that you want people to associate with
your brand.
Example: “Langhap Sarap” - Jollibee , “Just Do It” – Nike, “We Find Ways” – BDO
B. Customer Segmentation - the process of dividing
customers into groups based on common characteristics
so companies can market to each group effectively and
appropriately. It identifies the target market. Companies
often segment customers according to demographics
that include:
✔ Age
✔ Gender
✔ Marital status
✔ Location (urban, suburban, rural)
✔ Life stage (single, married, divorced, empty-nester, retired, etc.)
Customer segmentation requires a company to gather specific information – data –
about customers and analyze it to identify patterns that can be used to create segments (Murphy
2020).
Data Gathering Techniques:
● Face-To-Face/ Telephone/ Chat/ Online Interview – a data collection when the
interviewer communicates directly with the respondents.
● Focused Group Discussion (FGD) – Group of people are gathered and shared
their perceptions, opinions, beliefs, ideas, and attitudes towards the product or
service, concept, advertisement and packaging.
● Surveys – Company prepared a survey questionnaire. Surveys may be done
through paper questionnaires or online via google forms.
C. Channels - describes how a company
communicates with and reaches its Customer
Segments to deliver its Value Proposition. It is
important to understand which pathway (or
channel) is best for your company to reach your
customers (ATm Startup Aggieland Texas A & M
University n.d.).
FIVE TYPES OF CHANNEL PHASES:
▪ AWARENESS- how do we raise awareness about our company’s products and
services? Advertising (Word of Mouth, Social Media, Newspaper, etc.)
▪ EVALUATION- how do we help customers evaluate our organization Value
Proposition? Surveys or Reviews
▪ PURCHASE- how do we allow customers to purchase specific products and services?
Web vs. Brick and Mortar or Self-Checkout
▪ DELIVERY- how do we deliver a Value Proposition to customers?
Over the counter or Delivered/Catered
▪ AFTER SALES- How do we provide post-purchase customer support?
 Call center or Return policy or Customer assistance
D. Customer Relationships - The ways in
which your company communicates and deals with
existing customers. Follow-ups build relationships
aside from saying “Thank you”. Palin said,
“Satisfying customers isn’t enough to guarantee
they’ll come back, you need to go above and
beyond. That’s true whether you run a coffee shop
where regulars want to feel like a part of the family
or an auto-parts company whose customers
demand high quality and responsive service.”
Six Tips to Create Good Customer Relationship (bdc n.d.):
1. Understand what your customer values – Listen to what they say, and how they say
it and adjust your approach to match their expectations.
2. Show you genuinely care – People want to connect beyond the professional level.
Being friendly and with a personal approach pays off.
3. Adapt to their pace – If customers in a hurry do not slow them down. If the
customers want to chat do not rush them.
4. Let your brand be your guide – Your branding and marketing make a promise and
it is essential to deliver on that. Do not fail your customers with your company’s
promise.
5. Model the behavior you want to see – The way you treat your employees shows
them how they are supposed to treat your customers.
6. Remember that relationships are built over time – Exceed expectations. It is
important to go above, and beyond, you do not need to hit the home run with every
conversation.
E. Revenue Streams – I would like you to know what
revenue means, Revenue is the amount of money that is
brought into a company through its various business
activities (e.g. sales of products and services). How will
you find your revenue? For example, if you sell 10 packs
of ube-cheese pandesal per day for 120 per pack. Let us
break down using this formula Number of Goods sold x
Price = Revenue.

#of Goods Price Daily Weekly Monthly Yearly

sold Revenue Revenue Revenue Revenue

10 Packs of 120.00 =1,200.00 1,200.00 x 1,200 x 30 1, 200 x

ube-cheese 7 = 8,400 = 36,000 365 =
Pandesal 438,000

Revenue Streams is the various sources from which a business earns money from the
sale of goods or the provision of services. The types of revenue that a business records on its
accounts depending on the types of activities carried out by the business. The revenue accounts
of retail businesses are more diverse, as compared to businesses that provide services
(Corporate Finance Institute 2015).
Revenue Stream is the building block presenting the cash a company generates from
each Customer Segment. It can be generated in different ways (Empower Women 2016):
▪ Sale of Physical Product – The customers pay cash for the product.
▪ Usage Fee – The customer pays a user fee for a particular service.
▪ Subscription fee – The customers pay for a particular service. Example Netflix Movie
Subscription
▪ Lending/Renting/Leasing – The customer pays to use a particular product for a fixed
period of time.
▪ Brokerage Fee – Company gets a revenue from an intermediate service. It is often used
by real estate agents, and credit card providers
▪ Advertising – Your company may charge fees for advertising a product, service or
brand.
▪ Volume and Unit Selling – Your company charges a fixed price for a product however
if the customers choose to buy in a higher quantity you may give them a discount or
you may have a different price for different customer segments.
Take note: You will need to decide what kind of Revenue Stream best fits your business.

F. Key Resources - The resources are needed to

create value for your customers. These resources can
be categorized into four main categories (Empower
Women 2016):
▪ Physical resources – raw materials, building,
vehicle, transportation, storage facility, machines,
factory, and equipment.
▪ Human Resources – staff or employees (engineer
or marketing expert)
▪ Intellectual Resources – brand, patent, copyright, partnership, customer database.
▪ Financial Resources – cash, credit, equity

G. Key Partners - The relationships that you have with

other business, governmental, or non-consumer
entities that help your business model work such as
suppliers, manufacturers, business partners, etc.
Four Types of Partnerships
▪ Strategic Alliances between Non-competitors –
You can partner with a manufacturer to
produce a part of your business product.
▪ Competition – You can strategically partner with your competitor.
▪ Joint Ventures to Develop New Businesses – You can join your company with
another company to create a new different entity.
 ▪ Buyer-Supplier Relationship – You can build a reliable relationship with your
buyer and supplier.

H. Key Activities - Any activities that your

business is engaged in for the primary purpose of
making a profit such as operations, marketing,
production, problem-solving, and
administration. The Key activities of a business
represent what the company must do to make the
business model work. These activities can be
producing a product or providing a service, or a mix of both (Epperhart 2015).
Two Major Types of Key Activities
▪ Supply Chain Management – Supply chain comes in two places: Key Resources
and Key Partners. Key Resources are helping you manage your Key Partners.
▪ Software Development – Today almost all business systems have been moved
into software processes. Computer software that helps you manage all of the
pieces of a business that need to operate and run.

I. Cost Structure - The costs and expenses that

your company will incur while operating your
business model.
Two Main Categories of Cost
▪ Cost-Driven – Focuses on minimizing
the costs of the product or service as
much as possible.
▪ Value-Driven – Focuses on creating
more value in the product itself, not necessarily producing the product at the
lowest possible cost.
Types of Cost (Murphy 2020)
▪ Fixed Cost – Costs that do not vary with the level of output in the short term.
Example : Rent, Office Supplies, Advertising
▪ Variable Cost – Cost varies in direct proportion with the level of output.
Example: Raw materials, Packaging costs, Labor cost
▪ Operating Cost – Expenses associated with day-to-day business transactions. It
can be variable or fixed cost.
▪ Direct Cost – Related to producing a good or service. It includes raw materials,
labor, distribution and expenses.
▪ Indirect Cost – Unrelated to producing a good or service. Electricity used to
power the plant is considered as an indirect cost because the electricity is used
for all the products made in the plant.

Learning Competency with Code

1. Develop a Business Model
 TLE_ICTAN11/12EM-Ia-2
Activities
Day 1
Activity 1: Multiple Choice
Instruction: Read comprehensively. Choose the correct letter of your answer.
1. “Broadcast Yourself” – Youtube
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
2. Gather specific information – data – about customers and analyze it to identify patterns
that can be used.
a. Customer Feedback c. Customer Segments
b. Customer Relationships d. Customer Service
3. “The milk chocolate melts in your mouth, not in your hand.” – Mars, Incorporated
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
4. Number of Costs of Good Sold multiplied by Price.
a. Cost b. Good c. Price d. Revenue
5. The relationships that you have with other business, governmental, or non-consumer
entities that help your business model work.
a. Key Activities c. Key Partners
b. Key Chain d. Key Resources
6. The amount of money that has to be paid to acquire a given product
a. Cost b. Good c. Price d. Revenue
7. “Who your customer is, what value you can create/add for the customer and how you
can do that at reasonable costs.”
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
8. Understand what your customer values.
a. Customer Feedback c. Customer Segments
b. Customer Relationships d. Customer Service
9. Any activities that your business is engaged in for the primary purpose of making a
profit.
a. Key Activities c. Key Partners
b. Key Chain d. Key Resources
10. “Why is there nothing quite like the iPhone? Every iPhone we’ve made – and we
mean every single one – was built on the same belief. That a phone should be more
than a collection of features. That, above all, a phone should be absolutely simple,
beautiful and magical to use.”
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
Day 2-4
Activity 2: Develop your Business Model using the Business Model Canvas
1. Create your Product Idea
2. Guide questions are provided for each box
 3. You may create a group with 3 to 5 members to help each other in developing business
models.
4. You may present through video presentation or audio presentation.

7. Key 8. Key 1. Value 4. Customer 2. Custome

Partners Activities Propositio Relationships r
n Segments

Who are What Key What type of

your key Activities do What value do you relationship does For whom are
partners our Value deliver to the each of your you creating
(Suppliers) Proposition customer? customer value?
? require? segments expect
Which of your Who are your
you to establish
Which key Your customer’s most important
and maintain
resources distribution problems you need customers (target
with them?
are you channel? to solve? market)?
acquiring
Customer What products and
from your
Relationships services you will
partners
? offer to each
(suppliers)?
Customer
Revenue
Which key Segments?
Streams?
activities do
partners 6. Key 3. Channel
perform? Resources s

What key Through which

resources do channels do your
your value customer
proposition segments want to
require? be reached?
9. Cost Structure 4. Revenue Streams

What are the most important cost inherent in For what are your customers really
your business? willing to pay?
Which key resources are most expensive? For what they pay?
Which key activities are most expensive? How are they paying?
Is your business more cost-driven or value- How would day prefer to pay?
driven?
How much does each Revenue Stream
contribute to overall revenues?
 Is your business more on fixed cost or variable
cost?

Source: wwwbusinessmodelgeneration.com
Reflections:
How Business Model can help you in making Business Plan?

References
n.d. ATm Startup Aggieland Texas A & M University. Accessed September 9, 2020. https://bmcintroduction.wordpress.com/channels/.
n.d. bdc. Accessed September 9, 2020. https://bit.ly/2RasxUC.

2015. Corporate Finance Institute. Accessed September 9, 2020.

https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-streams/.

Das, Sourobh. 2020. feedough.com. July 8. Accessed September 9, 2020. https://www.feedough.com/what-is-a-business-model/.

2016. Empower Women. Accessed September 9, 2020. https://bit.ly/3m9w57F.

2016. Empower Women. Accessed September 9, 2020. https://bit.ly/3bQGlNx.

Epperhart, Billy. 2015. Wealthbuilders. March 30. Accessed September 9, 2020. https://bit.ly/2RdUgUs.

Parsons, Noah. n.d. Bplans. Accessed September 9, 2020. https://articles.bplans.com/what-is-a-business-model-business-models-explained/.

n.d. Shopify.com. Accessed September 9, 2020. https://bit.ly/3hlJ9Uc.

Answer Key

Activity 1: Product Benefits or Product Features

1. b. Tagline 6. c. Price
2. c. Customer Segments 7. a. Business Model
3. c. Unique Selling Proposition 8. b. Customer Relationships
4. d. Revenue 9. a. Key Activities
5. c. Key Partners 10. d. Value proposition

Activity 2: Business Model

Rubric for Business Model Canvas

Exceeds Standards (10) Meets Standards (5) Not Approaching Standards Score
(3)

Product Idea Well thought out, creative, A creative product that is/ Poorly considered and
and unique product that is may be viable in the presented product that may
*Minimum Viable Product viable to the market place. market place. Some not be practical in the market
It is evident that extensive thought was given to the place. Little to no thought or
thought was put in to the MVP creation of the consideration was put in to
MVP idea. product idea. MVP idea.

1. Value Proposition Specific customer Specific customer Vague specific customer

problems cited and needs problems cited and needs problems cited and needs
with extensive back up data with back up data to show with lack of back up data to
to show MULTIPLE market potential. Specific show market potential.
market potential. Specific key features of product Specific key features of
key features of product that product that does not match
 match the customers’ that match the customers’ the customers’
problems/needs. problems/needs. problems/needs.

2. Customer Clear understanding of Clear understanding of

Segments specific customers in specific customers with
MULTIPLE markets. potential size of market. Clear understanding of
Specific business model Specific business model specific customers missing
archetypes for each market. archetypes for customer. potential size of market.
Multiple jobs we are Complete understanding General or missing business
handling for the customer of the job we are handling model archetypes for
specific to the market. for the customer customer. Missing or to
general of an understanding
of the job we are handling for
the customer.

3. Channels Extensive research of B2B Specific B2B (Business- Unclear B2B (Business-to-
(Business-to- to-business)/B2C business)/B2C (business-to-
business)/B2C (business- (business-to-Customer) Customer) channel
to-Customer) channels of channels of distribution understanding. Missing
distribution with citations with citations for each specific channels and
for each specific and specific and alternative alternative channels.
alternative channels. channels.

4. Customer In depth three-part plan to Three-part plan to attract, Missing steps to attract, keep,
Relationships attract, keep and grow keep and grow customers and grow the customer.
customers with specific with specific benchmarks. Missing understanding of
benchmarks. Specific Clear understanding of the needed relationship with
understanding of the complete customer customer.
complete customer relationship needs.
relationship needs.

5. Revenue Streams Clear understanding of the Clear understanding of the A general understanding of
profit stream for the profit stream for the the profit stream for the
product/service in product/service. A product/service. A partial
MULTIPLE markets. A complete revenue model revenue model based on
complete revenue model based on customer customer segments. General
based on MULTIPLE segments. Specific pricing pricing tactics for customer
customer segments. tactics for customer segment.
Specific pricing tactics for segment.
each customer segment.

6. Key Partners An extensive list of key A complete list of key Incomplete of missing list of
partners, suppliers, partners, suppliers, key partners, suppliers,
resources required of each resources required of each resources required of each
key partner. Key partners key partner. Key partners key partner. Key partners
expected return from your expected return from your expected return missing or to
side of the venture with side of the venture. general, from your side of the
monetary value venture.

7. Key Activities List of key activities with List of key activities with Missing or general list of key
backup data on needs to backup data on needs to activities without backup data
achieve key activities for achieve key activities. on needs to achieve key
MULTIPLE markets. Detailed tasks for activities. Missing detailed
Detailed tasks for manufacturing, tasks for manufacturing,
manufacturing, technology, technology, supply chain technology, supply chain and
supply chain and other and other activities other activities specific to
activities specific to specific to product/service.
product/service. product/service..

8. Key Resources Complete list of resources Complete list of resources General list of resources
needed with citations for needed with citations for needed without citations for
connecting with the connecting with the connecting with the
resources, and sorted by resources, and sorted by resources, and missing
prioritization by prioritization. prioritization.
MULTIPLE markets.

9. Cost Structure Explanation of critical Explanation of critical Missing or general critical

costs for product/service costs for product/service costs for product/service
with sources for with sources. Complete without sources. In-complete
MULTIPLE markets. spreadsheet with detailed spreadsheet with detailed
Complete spreadsheet with fixed and variable for a fixed and variable for a
 detailed fixed and variable startup or in house startup or in house resource
for a startup or in house resource requirement. requirement.
resource requirement by
MARKET.

Source: https://bit.ly/2Rqzu4d

Rubric for Video or Audio Presentation

Exceeds Standards (10) Meets Standards (5) Not Approaching Standards (3) Score

Subject Knowledge Ties presentator has a Each presenter understands Presenter does not understand
complete understanding of their position on the their position on the Business
"Business Model Canvas", Business Model Canvas Model Canvas, product
product and customer product knowledge, and knowledge, and sources
segment in the executive sources referenced in referenced in executive
summary and presentation. executive summary and summary and slides.
slides.

Script Well thought out Slide Slide presentation follows a Slide presentation out of
design, follows a sequential sequential order, slide sequential order, slide
order, slide transition flows transition flows and proper transition does not flow and
and proper grammar, spelling grammar, spelling slide proper grammar, spelling slide
slide organization. All target organization. organization missing.
referenced customer
included.

Delivery Excellent presentation oral Presenters oral skills well Poor oral delivery, presentation
skills well practiced, slides practiced, slides tided into not tying into slides, not
tided into presentation, and presentation, and proper prepared for client
proper attire for the event. attire for the event. presentation. Unable to respond
Well thought out responses Thought out responses for to clients questions.
for client questions with data client questions.
support for answers.

Source: https://bit.ly/2Rqzu4d

ENTREPRENEURSHIP
Week 4

Name of the Learner: Grade Level:

Section: Date:

Forecast the Revenues of the Business

Background Information for Learners

What is Revenue Forecast?
Revenue is the income obtained by a business from its sales of goods (referred to as
sales revenue) or sales of services provided to its customer (referred to as service revenue).
Forecasting revenue goes hand-in-hand with forecasting sales.
Revenue Forecast is the calculation of the quantity of cash that a company will receive
from sales in products or services during a particular time. The business revenue forecast is an
essential part of business planning though it is not intended to give actual figures for each year's
earnings.
Purpose of forecasting revenue
1. Can help you discover why, when, where, and how of your sales activities.
2. It can assist you to come up with a better strategy to maximize your profit.
3. It can also help with your cash flow management through planning your capital
needs to keep away from lacking payments, dropping suppliers and investors, and
adverse credit history.
4. It can assist to determine profit margin and contribution to gross profits.
5. It can manage production scheduling to prevent bottlenecks that would possibly
cause lost income and help to spot potential downtimes that cause to pay workers.
6. It can also identify peak hours.

SIMPLE STEPS TO FORECAST REVENUE

1. Choose which forecasting methodology primarily based on the business is needed,
how much time you have, and your degree of confidence in the data.
a. TOP-DOWN FORECASTING. It is a method of estimating a company’s future
performance by starting with high-level market share (your TAM-total available
market), potential market share and down to revenue.
For example, if your company is selling a Mobile Phone, you may look at the
number of consumers who have purchased mobile phones.
b. BOTTOM-UP FORECASTING- It is a method of estimating company’s future
performance via starting with low-level company data and working up to revenue.

**You can calculate the company’s estimated revenue by multiplying the number of
orders and the average price.
c. QUALITATIVE FORECASTING- It is an estimation methodology that uses
professional judgment instead than numerical analysis. It depends upon the
information of experienced and expert consultants to provide insights into future
outcomes.
d. QUANTITATIVE FORECASTING- It is a statistical approach to make predictions
about the future which makes use of numerical measures and prior results to predict
future events. They are highly structured on mathematical calculations.
2. Identify and break down your revenue drivers so that you can forecast them later.
These are the metrics that will drive your revenue:
● Salespeople
● Marketing
● Number of customers
● Average frequency of purchase (how often a single customer buys your product)
● Average purchase volume (how many products a single customer buys)
● Variety of products Amount sold of each product
● Prices of each product
● Sales cycle (how long from start to finish does it take a salesperson to close a
sale)
 3. Project the drivers and use the drivers to forecast the revenues. And compute the
Sales Revenue.
Formula for Revenue:
Price of per unit x number of unit sold = revenue
Forecast Expenses Incurred
Businesses incur more than a few types of expenses. An expense is the cost of
operations that a business incurs to generate revenue (Liberto 2020). It is the cost of doing
business; the sum of all activities that result in a profit. It is necessary to recognize the
distinction among expenditure, expense and cost. Expenditure refers to the amount incurred
in a long term period by the company to purchase and increase the value of fixed assets (Morah
2019). On the other hand, expenses refer to the costs that are ongoing payments incurred on a
short term basis and used to generate revenue. Cost, it refers to the amount of money spent on
the production or creation of goods or services (Cambridge Dictionary n.d.).

As the diagram above illustrates, there are several types of expenses. The common way
to categorize them is into operating vs. non-operating (Adkins 2019) and fixed cost vs. variable
cost (Fresh Books Accounting n.d.).
OPERATING NON-OPERATING
FIXED COST VARIABLE COST
EXPENSE EXPENSE

An expense a This is not related to An expense that An expense that

business incurs in a company’s day-to- remains constant changes directly and
order to keep day operation or for a period of proportionally to the
running the manufacturing. time irrespective changes in business
operation. of the level of activity level or
outputs. volume.
Does not vary This also refers to the
directly to sales. actual costs of making
the product or
providing the service.
Payroll Depreciation Rent Transaction fees
Insurance fees Amortization Salaries and Commissions
License fees Bank fees wages Marketing and
Rent Lawsuit payments Loan payments advertising
Marketing and associated fees Direct labor
(advertising and Currency exchange Taxes
promotional fees) rate Costs of goods sold
Accounting fees Restructuring costs Materials and supplies
Building Obsolete inventory Packaging
maintenance and Interest
repairs Taxes
Utilities
Attorney’s fees
Property Taxes
 Travel expenses
You must forecast each expense of the business including:
Startup Expenses- These are the expenses incurred for the duration of creating a new business
such as pre-operating expenses (Morah 2019).
Fixed Costs - All the overhead costs of the business.
Variable Costs - All of the costs that vary with the business.

Compute Profits
The terms "profit" and "income" are often used interchangeably in day-to-day life.
Profit is generally understood to refer to the cash that is left over after accounting for expenses
(Kenton 2020). Computing a profit or loss has to be completed by all companies of any size,
form the small enterprise to large enterprise. It is in a simple calculation Total Revenue – Total
Expenses = Profit.
1. Compute all the revenue from sales of goods and services
Example: You owned school supplies. September 1, 2020, you sold 10,000 worth of bond
papers to Sapang Bato National High School. September 2, 2020, you sold to Angeles City
National Trade School 10,000 worth of bond papers and to Sapang Bato Elementary School
15, 000 worth of ink and bond papers. September 3, 2020, you sold 10,000 worth of school
supplies from various customers.
DATE ITEM/S AMOUNT

September 1, 2020 Bond Papers 10,000

September 2, 2020 Bond Papers and ink 25,000

September 3, 2020 School Supplies 10,000

Total Revenue
45,000

2. Compute all the costs and expenses for the accounting period ( 1 month).
For example: Let’s say your school supplies business spent 3,500.00 for paying your store
rentals and 2,000.00 for your saleslady salary. In this case, your total expense is 3,500.00 +
2,000.00 = 5,500.00.
3. Subtract all the expenses from the revenue. You just simply subtract your expenses to
your sales revenue. The money left represents your business profit. In the example, you
already computed your total revenue and total expenses from your school supplies
business. Subtracting your total expenses from your total revenue gives you 45,000 –
5,500 = 39, 500 profit.
4. Note that a negative result for profit is called net loss.
Learning Competency with Code
1. Forecast the revenue of the business
2. Forecast the cost to be incurred
3. Compute Profits
TLE_ICTAN11/12EM-Ia-2
Activities
Day 1
Activity 1: CROSSWORD PUZZLE

Across
2. An expense that remains constant for a period of time
4. The amount of money spent the production or creation of goods or services.
7. The cash that is left over after accounting for expenses.
8. The amount incurred in a long-term period by the company to purchase and increase the
value of fixed assets
9. The income obtained by a business from its sales of goods or services provided to customers
10. A statistical approach to make predictions about the future which makes use of numerical
measures.
Down
1. An expense that changes directly and proportionally to the changes in business activity level
or volume.
3. An expense incurred for the duration of creating a new business
5. Uses professional judgement instead than numerical analysis
6. The cost of operations that a business incurs to generate revenue

Day 2
Activity 2: Identification
Instruction: Read the statement comprehensively. Identify which of the statements best
described as Fixed Cost, Variable Cost, Operating Expense, and Non-Operating expense.
1. Your business rents a space at CHH building on Friendship Highway where you pay
25,000 monthly. This is an example of __________.
2. If you own a home, you must pay using electricity. The amount you pay changes
monthly depending on how much you consume. This is an example of a _________.
3. An expense that is not related to your company’s day-to-day operation.
4. An expense of your business incur in order to keep running your business.
 5. The actual costs of making a product or providing the service.
Activity 3: Compute Expenses, Sales Revenue, and Profits
Transactions for September 2020 were as follows:
Advertising costs paid in cash 2,000
Purchased equipment for 6,000 cash
Paid 1,500 cash for September Store rent
Provided services to customers 7500.
Cash collected from customers 15,000.
1. Identify and calculate total revenue.
2. Identify and calculate total expenses.
3. Compute profits.
Day 3-4
Activity 4: Forecasting is all about assumptions. Assumed that you are going to establish your
Milk Tea Store in your area.
Instruction/ Guide Questions:
1. Who are your target market/ potential buyers?
2. What are the flavors are you going to offer for the first month of operation?
3. What are the glass sizes available?
4. What are the ingredients and supplies you are going to use?
5. Estimate all your expenses and cost of goods sold in purchasing ingredients and
supplies.
6. Compute all the expenses and cost of goods sold.
7. What are the equipment/machines you will purchase in establishing your milk tea
business?
8. Estimate the amount of the machine and equipment.
9. Compute all the amounts used in purchasing machines/ equipment..
10. What marketing platforms are you going to use? Estimate the amount for advertising
expenses.
11. Compute the total advertising expense.
12. Are you going to hire staff? If so, how much is the salary each day? How many staff
will you hire?
13. Compute your staff salary in one month.
14. How much will it cost to acquire a Barangay Business permit?
15. Calculate all your expenses from supplies and ingredients, machine/ equipment,
advertising expense, salary expense, and business permit.
16. Estimate the price of your milk tea, by size and flavor.
17. Estimate the number of customers who will buy your milk tea for each size and flavor
in a day.
18. How many customers will add each day to buy your milk tea?
19. Compute your sales per day, per week and per month.
20. To compute your Profit, Add all your sales revenue in a month and subtract all your
expenses and costs.
Reflections:
How Forecasting can contribute to the startup business?
References
Adkins, William. 2019. Small Business Chron. March 1. Accessed September 11, 2020. https://smallbusiness.chron.com/difference-
between-operating-nonoperating-expenses-39827.html.

n.d. allBusiness. Accessed September 11, 2020. https://bit.ly/35uHMA5.

n.d. bdc. Accessed September 9, 2020. https://bit.ly/2RasxUC.

n.d. Cambridge Dictionary. Accessed September 11, 2020. https://dictionary.cambridge.org/us/dictionary/english/cost.

n.d. Fresh Books Accounting. Accessed September 10, 2020. https://bit.ly/35wgdGw.

Kenton, Will. 2020. Investopedia. July 21. Accessed September 11, 2020. https://www.investopedia.com/terms/p/profit.asp.

Liberto, Daniel. 2020. Investopedia. August 23. Accessed September 12, 2020. https://www.investopedia.com/terms/e/expense.asp.

Morah, Chizoba. 2019. Investopedia. November 27. Accessed September 12, 2020.
https://corporatefinanceinstitute.com/resources/knowledge/accounting/expenditure/.

Murphy, Chris B. 2020. Investopedia. March 13. Accessed September 10, 2020. https://bit.ly/33k8jgI.

http://puzzlemaker.discoveryeducation.com/code/BuildCrissCross.asp

Answer Key

Activity 1 ACROSS DOWN

2. FIXED COST 1. VARIABLE COST

4. COST 3. STARTUP EXPENSE
7. PROFIT 5. QUALITATIVE
8. EXPENDITURE 6. EXPENSE
9. REVENUE
10. QUANTITATIVE

Activity 2:

1. FIXED COST
2. VARIABLE COST
3. NON- OPERATING EXPENSE
4. OPERATING EXPENSE
5. VARIABLE COST

Activity 3:

1. Service Revenue 7500.00

Sales Revenue 15,000.00

Total Revenue 22, 500.00

2. Advertising Costs 2,000.00

Equipment 6,000.00

Rent 1,500.00

Total Expenses 9,500.00

3. Total Revenue 22,500.00

Total Expenses 9,500.00

Profit 13,000.00

Activity 4:

- Learners may have a different answer

- Consider the teacher’s judgement in evaluating the learner’s answer.
 ENTREPRENEURSHIP
Week 5

Name of the Learner: Grade Level:

Section: Date:

Starting a Business
Background Information for Learners
Starting a business involves many activities related to organizing the organization,
generating of an idea for the enterprise, researching the idea's potential for success, and writing
a business plan. Starting a business of any size requires an investment. Regardless of the size
of a business, it must be unique in order to succeed. Many large, successful companies began
as small organizations with a business idea that was significantly different from anything else
on the market (Encyclopedia.com 2019). The most frequently used forms by entrepreneurs are
startup, buying existing business and franchising.
Startup is a young company founded by one or more entrepreneurs to develop a unique
product or service and bring it to market. Buying existing business is acquiring either the
shares or all the assets of the existing company. Franchising is when the owner of the company
that already has a successful product or service, licenses its trademark, trade name, and methods
of doing business to others in exchange for an initial franchise fee and royalty payments
(Edralin 2019).
Consider these factors (Edralin
2019) before you start a business to build an
entrepreneurial mindset. It is important to
an entrepreneur to exploit the opportunity
by starting a business on the right path, with
a solid foundation to enable to grow,
succeed and become sustainable in the
business.
In starting a business, you must be
clear about your purpose in establishing
your own business whether it is for profits
or for feeding your family.
You must also present a winning
business concept that manifest tremendous
future possibilities or might say you may
change the world.
You must also think of having an
angel in your business. Look for partners
that can contribute their expertise,
experience and good character that will
enable your business to succeed.
 Steps to Start a Business
Starting a business involves planning, making key financial decisions and compel a
series of legal activities. Here are the steps that might guide you in starting your business:
1. Conduct Market Research – Gathering information
about existing business and potential customers may
help you to tell if there is an opportunity and may
find you a competitive advantage for your business.
2. Write your
Business Plan – Your business plan is the foundation
of your business. It is your roadmap on how to
structure, run and grow your new business. Your
convincing power to attract investor to your business.
3. Fund your business – Look for sources of funds.
4. Pick your Business Location – Finding business location is one of your important
decisions to make.
5. Choose a Business Structure – Identify whether your business is micro or large, single
proprietorship or partnership, it will give impact your business registration
requirements and your personal liability.
6. Choose your Business Name – Make sure your business name is unique and not being
used by someone else.
7. Register your Business- Make your business legal to protect your brand.
8. Apply Licenses and Business Permit – Make your business legally operated and
compliant.
9. Advertise your Business – You may use traditional advertising such as television ads,
radio ads, and newspaper your ads and the easiest way now is using social media
platforms such as Facebook, Youtube, Instagram and the like.
10. Build your Team – Look for staff that will contribute to the success of your business.

Learning Competency with Code

Manifest Understanding of starting and operating a simple business.
CS_EP11/12B-ENTREP-IVa-i-1
Activities
Day 1-2
Activity 1
Instruction: Arrange the steps to start a business. Rewrite the whole statement from Step 1 to
10.
1. Look for sources of funds
2. Make your business legal to protect your brand name.
3. Use Social Media Platform in advertising your business.
4. Look for trained staff.
5. Make your business legally compliant.
6. Create a unique business name.
7. Gather information from existing business and from potential customers.
 8. Create your business plan
9. Find a strategic location.
10. Identify your business structure.
Day 3-4
Activity 2: Choose the three top most important factors you will consider before starting a
business. Explain each factors why you choose the three as your top most important factors to
consider.
Rubric for Essay
EXCELLENT VERY GOOD AVERAGE
5 4 3

Ideas This paper is clear and focused. It This paper is mostly The writer is beginning to
holds the reader's attention. Relevant focus, and has some define the topic, even though
details and quotes enrich the central good details and development is still basic or
theme. quotes. general.
Organization The organization enhances and Paragraphs are The organizational structure is
shows the central idea or theme. The mostly organize, in strong enough to move the
order, structure of information is order, and makes reader through the text
compelling and moves the reader sense to the reader. without too much confusion.
through the text.
Sentence The writing has an easy flow, The writing mostly The text hums along with a
Fluency rhythm, and cadence. Sentences are flows, and usually steady beat, but tends to be
well organize with strong and varied invites oral reading. more businesslike than
structure that invites expressive oral musical, more mechanical
reading. than fluid.

References
Edralin, Divina M. 2019. "Starting a Business." In Entrepreneurship, by Divina M. Edralin, 43-63. Quezon City: Vibal Group Inc.

2019. Encyclopedia.com. November 22. Accessed October 25, 2020. https://bit.ly/3onghj3.

Answer Key

Activity 1

Scoring Rubrics

Arrange completely and properly 10pts.

Activity 2:

- Learners may have a different answer

- Consider the teacher’s judgement in evaluating the learner’s answer.
 ENTREPRENEURSHIP
Week 6

Name of the Learner: Grade Level:

Section: Date:

Business Plan Implementation

Background Information for Learners
In your previous lesson, you have manifested your understanding of starting and
operating a business. In this learning activity sheet, you will be able to implement your new
developed business plan. Planning is “today’s preparation for tomorrow”. It is looking ahead
by arranging a structure for doing a project. These are the questions to be answered by what
to do? When it is to accomplish? Where will it take place? Who will do it? How to do it and
How much resources needed?
Business Plan is a written document that describes in detail how a business — usually
a startup — defines its objectives and how it is to go about achieving its goals. A business plan
lays out a written roadmap for the firm from each of a marketing, financial, and operational
standpoint to attract investment before a company has established a proven record (Hayes
2020). The body of the business plan is divided into five distinct sections (Rafael 2005):
1. Description of the business
Provide a detailed description of the business. It answers the question “What business
am I in?” The business description is divided into three primary sections:
a. Business Description – In describing the business, it explains legalities (business
form), licenses and permits you will need, what is your product/ service offering,
and time of operations.
b. Product/ Service – Describe the benefits of your goods/ services from your
customer’s perspective.
c. Location – It should be strategic, accessible and secured to consumers.
2. Marketing Plan
Know the customers likes, dislikes and expectations to come out with marketing
strategy. Describe your target customers. Marketing plan divided into 3 sections:
a. Competition – In business, “Competition is a way of life.” Know the trends, latest
technology, develop and improve your products according to what the market is
looking for. The more you offer something new the more competitive you are.
b. Pricing and Sales- Pricing strategy is one of the marketing technique you can use.
Consider your competitors prices in the market. Here are some of the pricing
strategy you can apply depending on the type of business:
● Retail cost and pricing
● Competitive pricing position
● Pricing below competition
● Pricing above competition
 ● Price lining
● Multiple pricing
● Service costs and pricing
● Material costs
● Service components
● Labor costs
● Overhead costs
c. Advertising and Public Relations – Advertising and promoting your product/
service is either you make or break. To have a good product and you did not
promote, you are not doing business at all. Advertising and promoting your product
are the lifeline of your business. Widen your network. The more people will know
and see your product the more chances your business will grow.
3. Management Plan – Managing a business demands dedication, persistence, and ability
to make decisions, the ability to manage both your employees and finances. Marketing
and management plan work hand in hand because it sets as foundation of your business.
Forms of Business Ownership (Paragas, Alma and Fulgencio, Maria Garcia A. 2005)
a. Sole or Single Proprietorship – It denotes single ownership, unlimited liability,
control over all decisions, receives all profits.
b. Partnership – Two or more people bind together to share money, property, common
fund and industry with the intention of dividing the profit among themselves.
c. Corporation - Run by two or more company, run by stockholders having limited
liability and regulate by statute.
d. Cooperatives - An association or corporation established for the purpose of
providing services on a nonprofit basis to its shareholders or members who own and
control it.
Choosing your Location (Paragas, Alma and Fulgencio, Maria Garcia A. 2005)
1. Know the population of the trading area
2. Study the competition
3. Study the location’s accessibility.
SWOT Analysis
A compilation of your company's strengths, weaknesses, opportunities and threats. The
primary objective of a SWOT analysis is to help organizations develop a full awareness of all
the factors involved in making a business decision.
Registering your Business
Every business small or large has to register with various government agencies. Why
do you need to register your business?
a. It gives you a unique identity.
b. It protects you from personal liability.
c. It attracts more customers.
d. It is easier to get bank credit and investment from investors.
e. It is important for continuity sake.
f. It secures and protects your business and customers.
● Department of Trade and Industry (DTI)
 ✔ Administers the registration of business names.
✔ Business name registration with the DTI is optional for Partnerships and
Corporations.
✔ In cooperatives no need to register name in DTI.
✔ Registering your Business Name with the DTI is an assurance that no
other entity may legally use your business name anywhere in the
Philippines.
● Securities and Exchange Commission (SEC)
✔ Gives the business enterprise its legal personality.
✔ Only Partnership and Corporations need to be registered with the SEC.
● Social Security System (SSS)
✔ SOLE/ SINGLE PROPRIETORSHIP - Accomplish and submit SSS
Forms R-1 Employer’s Data Record and R-1A Initial or Subsequent List
of Employees
✔ PARTNERSHIPS- Accomplish and submit R-1 and R-1A together with
the photocopy of Articles of Partnership.
✔ CORPORATIONS- Accomplish and submit R-1 and R-1A signed by its
President or any corporate officers or incorporators together with
Articles of Incorporation.
● Bureau of Internal Revenue (BIR)
✔ Register for tax purposes
● Department of Labor and Employment (DOLE)
✔ Employees with five or more are encouraged to register with DOLE.
✔ Monitors company compliance with labor laws.
✔ Employees with 50 or more is mandatory to register with the DOLE.
✔ Secure and fill up the Registration form with the attachment of Photostat
copy of SEC Certificate of Registration.
● Local Government Unit (LGU)- Municipality
✔ All businesses whatever the legal form are required to secure a Mayors
Permit or Business Permit or municipal license to operate.
● Cooperative Development Authority (CDA)
✔ All Cooperatives are required to register with the CDA as per RA 6938
and 6939
● Other Agencies
✔ BPI ( BUREAU OF FOREST DEVELOPMENT)
✔ NTA (NATIONAL TOBACCO ADMINISTRATION)
✔ DTI-BPS (DTI- BUREAU OF PRPDUCT STANDARDS)
✔ DTI-BTRCP (DTI- BUREAU OF TRADE REGULATION AND
CONSUMER PROTECTION)
✔ SUBCONEX ( NATIONAL SUBCONTRACTORS EXCHANGE
✔ IPO (INTELLECTUAL PROPERTY OFFICE)
 ✔ BFAD (BUREAU OF FOOD AND DRUGS)
✔ GTEB (GARMENTS AND TEXTILE EXPORT BOARD)
✔ NFARD (NATIONAL FOOD AUTHORITY-REGULATORY
DIVISION)
✔ FIDA (FIBER INDUSTRY DEVELOPMENT AUTHORITY)
✔ BFAR (BUREAU OF FISHERIES AND AQUATIC RESOURCES)
✔ BAI ( BUREAU OF ANIMAL INDUSTRY)
4. Financial Plan – Sound financial management is one of the best ways for your business
to remain profitable and solvent. To effectively manage your finances, you should plan
a sound, realistic budget by determining the actual amount of money needed to open
your business (your startup costs) and the amount needed to keep it open (your
operating costs). In planning your financial, loan applications, capital equipment and
supply list, break-even analysis, pro forma income statement, pro forma cash flow and
balance sheet should be included. In this part, you should include also the explanations
of your projections. You should aim not to become a financial wizard but to understand
the financial tools enough to gain benefits.
Why Business Plan Should be Prepared?
1. Provides you with the road map that you need in order to run your business.
2. Assist in financial aspect.
3. Tells how much capital to invest.
4. Guides you to generate business ideas.
5. Establishes check and balance to avoid mistakes.
6. Sets up benchmarks to keep your business under control.
7. Develops your competitive spirit.
8. Analyzes market competition.
9. Helps you decide to “go” or “not to go” the business.

Obtaining Facts for a Business Plan (Bernardino 2005)

If you are planning to put up a business, you need to gather an information needed
about the location, kind of business and potential customers.
1. What are the trends?
2. Who are your potential and target customers?
3. Who are your competitors?
4. How much is your capital you will invest?
5. What are the equipment and facilities you will need?
6. What kind of staff you will need in your business?
7. How will you organize your business?
8. How to keep records and profits on track?
Guidelines for successful business plan implementation:
Objectives- the entrepreneur should have a clear idea on what is his purpose of putting up his
enterprise.
Tasks- this means that the entrepreneur must know what the tasks are he has to perform in
order that his objectives will be realized.
Time allocation- This means that the entrepreneur should have a timetable or a schedule to
follow every task, so that it will be accomplish on time and realize his objective.
Progress- This means that the entrepreneur should monitor the development of the tasks and
the accomplishment of the objective.

Learning Competency with Code

Implement the business plan CS_EP11/12B-ENTREP-Iva-i-2
Activities
Day 1
Business Idea Generation:
Instruction:
1. You may do this solo or group with 3-5 members.
Group : _________
Activity 1: Create your Business Ideas
Chapter 1 Management Plan
Business Name: ______________________
Business Product/ Service: ____________________
Reasons why you choose Your business name.

Reasons why you choose your business product/ service.

Create your objectives:

1.
2.
3.
Create your Vision

Create your Mission

Create your Key To Success

Create a logo and tagline

Location of your business

Start -Up Capital

Types of Ownership

Organizational Plan
Chart
Job Description

SWOT Analysis
Day 2
Group : _________
Activity 2: Develop your Business Plan
Chapter 2 Marketing Plan
Place (location and target market)

Promotion (Marketing strategy)

Price (How much the product/ service)

Product/ services (describe the product/service)

Distribution (how will you market the product/ service, how will you get your raw materials)

Day 3
Group : _________
Activity 3: Create your Business Ideas
Chapter 3 Legal Aspect

What are the Legal Requirements (permits) of your business to comply.

Day 4
Group : _________
Activity 4: Create your Business Ideas
Chapter 4 Technical Aspect
What are the equipment needed for the operation?

What are the supplies needed in the business?

What are the ingredients for making the product?

Nature of the location (rental, lease or purchased with price assumptions)

Product/service description (equipment, ingredients, materials used with price)

Transportation description (car/truck/ service with price)

Office layout /floor plan description.

Production and operational procedure.

References
Bernardino, Josephine C. 2005. "How to Plan a Small Business." In Technology and Livelihood Education I, by Josephine C. Bernardino,
443-447. Quezon City: Phoenix Publishing House Inc.

Hayes, Adam. 2020. Investopedia.com. August 21. Accessed October 26, 2020. https://www.investopedia.com/terms/b/business-plan.asp.

Paragas, Alma and Fulgencio, Maria Garcia A. 2005. "The BAsics of Strating a Good Business." In Tecnology and Livelihood Education IV
Home Technology and Business Management, by Alma and Fulgencio, Maria Garcia A. Paragas, 259-267. Quezon City: Phoenix
Publishing House inc.

Rafael, Edita Tampinco. 2005. "Developing a Business Plan." In Technology and Livelihood Education III, by Edita Tampinco Rafael, 447-
455. Quezon City: Phoenix Publishing House Inc.

Answer Key

Written Business Plan Rubric

BUSINESS NAME:
Written Business Plan Rubric Scoring Scale SCORE
Each section will be graded if it meets the requirements. It must have full explanations that provide all the
necessary details

Cover Page
All information present, including:
● Business name
● Company logo (optional)
● Name(s) of the owner(s)
● Date
Table Of Contents
● Includes each major section.
● Includes page numbers.
● Organized and neat.
Executive Summary
● Type of ownership
● Management experience
● Organizational structure
Business Description
● Basic information (mailing address, phone number, website, email, etc.)
● Legal form (partnership, corporation, etc.) - be specific
● Mission statement
● Goals & objectives
● Keys to success
Product or Service Description
● Competitive Advantage
● Uniqueness of product
Market Analysis
● Behavior
● Target Market
● Promotion
● Strategy
● Commercial
Resources
● Product
● Merchandise
● Martials
● Distributors
Location Analysis
● Advantages/disadvantages of location
● Rents/costs
Structure
● Font size 12
● Double spaced
● 1" margins
● No typographical errors
 ● Spelling, grammar, sentence structure

Business Plan Score:

- Learners may have a different answer

- Consider the teacher’s judgement in evaluating the learner’s answer
 ENTREPRENEURSHIP
Week 7

Name of the Learner: Grade Level:

Section: Date:

Bookkeeping Tasks

Background Information for Learners

Congratulations learner! You have successfully develop your business idea and
business plan. In this Learning activity sheet you will learn how to keep your business records
and be able to perform the bookkeeping tasks.
Accounting is a “language of business”, the process of recording financial transactions
pertaining to a business (Alicia 2020). Accounting cycle is the principal accounting procedure
or steps employed to process transactions during a fiscal period. Modern Accounting involves
seven steps and the first three steps fall under the bookkeeping function.
Bookkeeping is the process of recording all
financial transactions made by a business, and the
process of keeping track of every financial
transaction made by a business firm from the opening
of the firm to the closing of the firm. Bookkeepers
are responsible for recording, classifying, and
organizing every financial transaction made through
the course of business operations.
Bookkeeping differs from accounting. How?
A bookkeeper collects the documentation for each
financial transaction, records the transactions in the accounting journal, classifies each
transaction as one or more debits and one or more credits, and organizes the transactions
according to the firm's chart of account. At the end of the appropriate period, the accountant
takes over to analyze, review, interpret, and report financial information for the business firm
(Carlson 2020).
Keeping records is important to your business. Good records will help you do the
following (Edralin, Bookkeeping 2019):
1. Monitor the progress of your business
2. Prepare your financial statements
3. Identify sources of your income
4. Keep track of your deductible expenses
5. Keep track of your basis in property
6. Prepare your tax returns
7. Support items report on your tax returns
8. Gives companies reliable measure of their performance
 9. Provides information on general strategic decisions and a benchmark for its revenue
and income goals
10. It is crucial for businesses to keep good records of every penny spent
11. Give external users (investors, financial institutions, or the government) access to
reliable information to make better investment or lending decisions.

FUNCTIONS OF BOOKKEEPING
A. Recording Financial Transactions
The following are some of the types of records should you keep as a bookkeeper:
1. Gross Receipts are the income you received form the business. These are cash
register tapes, deposit information, receipt books and invoices.
2. Purchases are the items you buy and resell to customers. These are the cash register
tape receipts, credit card receipts and statements, invoices.
3. Expenses are the costs you acquire other than purchases to carry on your business.
These are the cash register tape receipts, credit card receipts and statements,
invoices.
4. Assets are the properties such as machinery, equipment, furniture, facility and land.
These are proof when and how you acquire the assets.
5. Employment Taxes are specific employment tax records.
B. Posting Debits and Credits
At the end of a business period, the journal entries will transfer into their respective
ledger accounts.
1. Journal Entry refers to the book of original entry. For
each transaction, the journal shows the debit and credit
effects of an account. Companies may use various kinds
of journals. The most basic is the general leger/ general
journal. General Ledger/ General Journal has spaces for
dates, account titles and explanations/ references and
two amount columns. Entering transaction data in the
journal known as journalizing.

Figure 1. General Journal

 2. T Account is an accounting record of increases and
decreases in specific asset, liability, or owner’s equity item. It
is a standard shorthand in accounting, which helps make clear
the effects of transaction on individual accounts.
3. Debits and Credits are the terms that have a special
meaning in the bookkeeping. These are directional signals.
Debit indicates left and credit indicate right in the “T account”. When the
amount increases assets and expenses, decreases liabilities, equity and revenue,
it is Debit. When the amount increases liabilities, equity and revenue, decreases
assets and expenses, it is credit.
Understanding Basic Accounting Equation
(Assets= Liabilities + Owner’s Equity/ A=L+E)
Effective bookkeeping requires you to understand the basic accounting equation and
accounting terms.
Assets are the resources a business owns. The company owns such
as its inventory, accounts receivables and fixed assets such as
plant, equipment, and land. Asset accounts start with cash account,
then the inventory, receivables, and fixed assets accounts.
Current Assets are assets that can be converted into cash within
one fiscal year or one operating cycle.
Examples of current assets include:
Cash and cash equivalents: Treasury bills, certificates of deposit, and cash
Marketable securities: Debt securities or equity that is liquid
Accounts receivables: Money owed by customers to be paid in the short-term
Inventory: Goods available for sale or raw materials
Fixed assets are non-current assets that a company uses in its production or goods, and services
that have a life of more than one year.
Examples of fixed assets include:
Vehicles (such as company trucks), Office furniture, Machinery, Buildings, and Land
Liabilities are claims against assets these are the existing debts
and obligations. Are legally binding obligations that are payable
to another person or entity.
Current Liabilities are financial obligations of a business entity
that are due and payable within a year (Accounting Tools 2020).
Examples of Current Liabilities include:
Accounts payable: These are the trade payables due to suppliers,
usually as evidenced by supplier invoices.
Sales taxes payable: These are the obligation of a business to remit sales taxes to the
government.
Payroll taxes payable: This is taxes withheld from employee pay, or matching taxes.
Income taxes payable: This is income taxes owed to the government but not yet paid.
Interest payable: This is interest owed to lenders but not yet paid.
Bank account overdrafts: These are short-term advances made by the bank to offset any
account overdrafts caused by issuing checks in excess of available funding.
Accrued expenses: These are expenses not yet payable to a third party, but already incurred,
such as wages payable.
Customer deposits: These are payments made by customers in advance of the completion of
their orders for goods or services.
Dividends declared: These are dividends declared by the board of directors, but not yet paid
to shareholders.
Short-term loans: These loans due on demand or within the next 12 months.
Current maturities of long-term debt: This is that portion of long-term debt that is due within
the next 12 months.

Non-Current Liabilities refers to the financial obligations in a company’s balance sheet are
not expected to be paid within one year. Are due in the long term, compared to short-term
liabilities, which are due within one year (Accounting Tools 2020).
Examples of non-current liabilities include:
Long-term leases, bonds payable, and deferred tax liabilities.

Equity refers to shareholders' equity or owner’s equity, represents the

amount of money that will return to a company’s shareholders if all of
the assets are liquidate. A degree of residual ownership in a firm or asset
after subtracting all debts associated with that asset (Murphy 2020).

How to Debit and Credit?

In This table, it illustrates the normal balance of debit and credit.
Account Debit Credit
Asset Account Increase in Balance Decrease in Balance

Expense Account Increase in Balance Decrease in Balance

Liability Account Decrease in Balance Increase in Balance

Equity Account Decrease in Balance Increase in Balance

Revenue Account Decrease in Balance Increase in Balance

Figure 2. Matrix of normal debit and credit balances of

Five Major Accounts
Example:
Asset Account
October 5, 2020, Pakat Kapampangan purchase machineries amounting to 150, 000.

It shows in this figure, that you have an increase in asset (fixed asset) and
a decrease in asset (cash).

Expense Account
October 6, 2020, Pakat Kapampangan purchase office supplies in cash amounting to
50,000.00.
 In this figure, it shows you have an increase in your expense and a decrease
in asset (cash).

Liability Account
October 7, 2020, Pakat Kapampangan borrowed Money from the Bank amounting to
100,000.00. Pakat Kapamangan promise to pay after one month with 10% interest of the
principal amount.
In this figure, it shows that you have an increase in asset (cash) and increase
in liability (accounts payable).

November 7, 2020, Pakat Kapampangan paid the loans to the Bank with
10% interest.

It shows in this figure that you have decrease in liability (accounts payable
and interest) and decrease in asset (cash).

Equity Account
October 4, 2020, Mr. Grant Flores invested 100, 000.00 in their new sticker business
“Pakat Kapampangan”.

In this figure, it shows that you have a decrease in owner’s capital (Mr.
Flores, capital) and you have an increase in asset (cash) in the business.

Revenue Account
October 10, 2020, Opening of Pakat Kapampangan, they earned 50,000.00 from various
customers.
In this figure, it shows that you have an increase in asset (cash) and an
increase in revenue (sales).

To fully understand the terms used in Bookkeeping Cycle , and the concept of debit and
credit balances, shown in the figure 3 below is a matrix of normal debit and credit balances
under of each of the five major accounts:
Account Type Debit Credit
ASSETS
Cash on Hand
Cash in Bank
Accounts Receivable
Notes Receivable
Inventories
Land
Building
 Equipment
Accumulated Depreciation
Other Assets
LIABILITIES
Accounts Payable
Notes Payable
Salaries Payable
Mortgage Payable
Unearned Fees
OWNER’S EQUITY
Capital
Drawing
REVENUE
Service Revenue
Sales Revenue
Other Income
EXPENSES
Rent Expense
Utilities Expense
Depreciation Expense
Salaries and Wages Expense
Other Expenses
Figure 3. Matrix of normal debit and credit balances of sub-accounts
How to Journalize?
Let us journalize the given example. The illustration shows how to journalize the given
example.

Figure 4. Sample Format of Journalizing

C. Producing Invoices
 An invoice is a notice outlining what services you
performed, the amount client owes, and where to send the
payment that you will send to customers or clients to
notify them that payment is due for services you have
performed (WikiHow 2019).
D. Maintaining and Balancing subsidiaries, general ledgers and historical accounts
The general ledger reflects a permanent summary of all your supporting journals, such
as the sales and cash receipts journal and the cash disbursements journal. Closing your
books and maintaining your general ledger should be one of your top priorities (Kluwer
2020).
E. Completing payroll
Payroll is a process where the employer pays its workers, applicable tax agencies, and
to provide employee benefits.
Learning Competency with Code
1. Identify the reasons for keeping business records.
2. Perform bookkeeping tasks.
CS_EP11/12B-ENTREP-IVa-i-3
Activities
Day 1
Activity 1: Identification
Identify if the word or words pertains to Asset, Liabilities and Equity
1. Accounts Receivable 6. Service Revenue
2. Cash 7. Mr. Flores, Capital
3. Loans Payable 8. Land
4. Equipment 9. Office Supplies
5. Cash in bank 10. Office rental
Day 2
Activity 2: Let’s Practice Debit and Credit
1. To increase the balance in the following accounts, would you debit or credit the
account?
a. Accounts Payable
b. Cash
c. Land
d. Supplies Expense
e. Service Revenue
2. To decrease the balance in the following accounts would you debit or credit the
account?
a. Accounts Payable
b. Cash
c. Land
d. Supplies Expense
e. Service Revenue
Day 3-4
Activity 3: Let’s Journalize!
Journalize the given transaction below. Use General ledger 4 columns or 6 columns. You may
also draw a replica of general ledger in yellow pad. You may use also Microsoft excel to
journalize the transaction.
In 2020, Bestfriends Joana and Erika opened a dress shop. They cater to the plus size
individuals in the city. On November 2, 2020, they invested 500, 000 in cash.
On November 3, 2020, they purchased sewing equipment worth 35, 000 from Patahian
Store. They also purchased utility van worth 250,000 on credit from Pidalinmo Shop and
promise to pay at the end of the month..
On November 6, they purchased worth of 5,000 office supplies, 15,000 of sewing
supplies from Pandayan Store and Patahian Store.
On November 10, they completed school uniforms for SHS students of Sapang BAto
National High School worth 350,000.
On November 15, 2020. They paid the three sewers 2,000 each and the office clerk
2,500.
On November 18, they accepted to provide service from Sapang Bato Elementary
school for Faculty T-shirts amounting to 30,000 on credit.
On November 29, they received payment Sapang Bato Elementary school for Faculty
T-shirts amounting to 30,000.
November 30, they paid electric of 2,000, water bill worth 750.00 and internet
connection for 1299. Joana and Erika withdrew 2,000 each for personal use.

References
2020. Accounting Tools. February 4. Accessed October 30, 2020. https://www.accountingtools.com/articles/what-are-
liabilities.html.

Alicia, Tuovila. 2020. Investopedia. January 28. Accessed October 29, 2020.
https://www.investopedia.com/terms/a/accounting.asp.

Carlson, Rosemary. 2020. Small Business. September 17. Accessed October 29, 2020.
https://www.thebalancesmb.com/bookkeeping-101-a-beginning-tutorial-392961.

Edralin, Divina M. 2019. "Bookkeeping." In Entrepreneruship Revised Edition, by Divina M. Edralin, 119-123. Quezon City:
Vibal Group Inc.

Kluwer, Wolters. 2020. BizFilings. Accessed October 31, 2020. https://www.bizfilings.com/toolkit/research-topics/finance/basic-

accounting/maintaining-a-general-ledger.

Murphy, Chris B. 2020. Investopedia. October 26. Accessed October 31, 2020.
https://www.investopedia.com/terms/e/equity.asp.

2019. WikiHow. May 12. Accessed October 31, 2020. https://www.wikihow.com/Make-an-Invoice.

Answer Key

Activity 1:

1. Asset 6. Equity
2. Asset 7. Equity
3. Liability 8.Asset
4. Asset 9. Asset
5. Asset 10. Asset
Activity 2:
1.a. Credit 2.a. Debit
1.b. Debit 2.b. Credit
1.c. Debit 2.c. Credit
1.d. Debit 2.d. Credit
1.e. Credit 2. e. Debit

Activity 3:

- Consider the teacher’s judgement in evaluating the learner’s answer.

ENTREPRENEURSHIP
Week 8

Name of the Learner: Grade Level:

Section: Date:
Prepare Financial Statements

Background Information for Learners

Congratulations learner! You have successfully familiarize the function of bookkeeper.
You are now able to perform bookkeeping tasks. In this Learning activity sheet you will learn
how to identify and interpret profit and loss by preparing the financial statements.
Financial Statements written records to determine whether
the company will earn profit and will have enough cash from
operations to finance all its requirements. Companies prepare four
financial statements from the summarized accounting data.
Income Statement or Profit and Loss Statement or
Statement of Financial Condition or Statement of Operations presents the revenues, expenses
and resulting net income or net loss for a specific period. Net Income results when revenues
exceed expenses. Net Loss occurs when expenses exceed revenue.
Statement of Cash Flows reflects the amount of cash received by the enterprise and the
cash spent for operations. It summarizes the cash inflows (receipts) and cash outflows
(payment) for a specific period. The statement of cash flows reports: (1) the cash effect of
company’s operations during a period; (2) its investing transactions; (3) its financing
transactions; (4) the net increase or decrease in cash during the period; and (5) the cash amount
at the end of the period.
Balance Sheet or Statement of Financial Position presents the financial position of
the business. Reports the assets, liabilities and owner’s equity at a specific period. Total assets
must equal total liabilities and owner’s equity.
Owner’s Equity Statement summarizes the changes in owner’s equity at a specific
period.
Transaction Analysis
Transaction 1: Investment by owner
In 2020, Bestfriends Joana and Erika opened a dress shop. They cater to the plus size
individuals in the city. On November 2, 2020, they invested 250, 000 each in cash.
Date Account Title and Explanations Ref Debit Credit
Nov. 2, 2020 Cash 001 500,000
Ms. Joana, capital 250,000
Ms. Erika, Capital 250,000
Fig. 1 Equal increase in Asset and Owner’s Equity
Transaction 2: Purchase of Equipment for Cash
On November 3, 2020, they purchased sewing equipment worth 35, 000 from Patahian Store.

Date Account Title and Explanations Ref Debit Credit

Nov. 3, 2020 Sewing Equipment 002 35,000
Cash 35,000
Fig. 2 Increase in assets (equipment) and decrease in asset (cash).
Transaction 3: Purchase of Vehicle on Credit
On the same date Nov. 3, 2020, they also purchased utility van worth 250,000 on credit from
Pidalinmo Shop.
Date Account Title and Explanations Ref Debit Credit
Nov. 3, 2020 Vehicle 003 250,000
Accounts Payable 250,000
Fig. 3 Increase in asset (vehicle) and increase in liability (accounts payable).
Transaction 4: Purchase of supplies in cash
On November 6, they purchased worth of 5,000 office supplies, 15,000 of sewing supplies
from Pandayan Store and Patahian Store.
Date Account Title and Explanations Ref Debit Credit
Nov. 6, 2020 Office Supplies 004 5,000
Sewing Supplies 005 15,000
Cash 20,000
Fig. 4 Increase in assets (supplies) and decrease in assets (cash).
Transaction 5: Receipt of cash from services provided
On November 10, they completed school uniforms for SHS students of Sapang Bato National
High School worth 350,000.
Date Account Title and Explanations Ref Debit Credit
Nov. 10 Cash 006 350,000
Service Revenue 350,000
Fig. 5 Increase in asset (cash) and increase in revenue.
Transaction 6: Payment of Expenses
On November 15, 2020. They paid the three sewers 2,000 each and the office clerk 2,500.
Date Account Title and Explanations Ref Debit Credit
Nov. 15 Salaries Expense 007 8,500
Cash 8,500
Fig. 6 Increase in expenses and decrease in asset.
 Transaction 7: Services provided for credit
On November 18, they accepted to provide service from Sapang Bato Elementary school for
Faculty T-shirts amounting to 30,000 on credit.
Date Account Title and Explanations Ref Debit Credit
Nov. 18 Accounts Receivable 009 30,000
Service Revenue 30,000
Fig. 7 Increase in asset (Accounts Receivable) and increase in revenue.
Transaction 8: Receipt of Cash on Account
On November 29, they received payment from Sapang Bato Elementary school for Faculty T-
shirts amounting to 30,000.
Date Account Title and Explanations Ref Debit Credit
Nov. 29 Cash 010 30,000
Accounts Receivable 30,000
Fig. 8 Increase in asset (cash) and decrease in asset (accounts receivable).
Transaction 9: Payment of Expenses
November 30, they paid electric of 2,000, water bill worth 750.00 and internet connection for
1299.
Date Account Title and Explanations Ref Debit Credit
Nov. 30 Utilities 011 2,750
Internet Connection 012 1299
Cash 4,049
Fig. 9 Increase in expenses and decrease in asset (cash).
Transaction 10: Withdrawal of cash by owners
On November 30, Joana and Erika withdrew 2,000 each for personal use.
Date Account Title and Explanations Ref Debit Credit
Nov. 30 Ms. Joana, drawing 013 2,000
Ms. Erika, drawing 014 2,000
Cash 4,000
Fig. 10 Decrease in owner’s equity (drawing) and decrease in asset (cash).
Summary of Transactions
The illustration below shows the summary of transactions for the month of September
of Bestfriends dress shop to show the cumulative effect on the basic accounting equation.
Transactio Liabilities
n Assets = + Owner's Equity

Accounts Supplies Accounts Owner's

Cash + Receivable + + Equipment Payable Owner's cap. - drawing + Revenues - Expenses
500,00
1 0 500,000
2 -35,000 35,000
3 250,000 250,000
4 -20,000 20,000
350,00
5 0 350,000
6 -8,500 -8,500
7 30,000 30,000
8 30,000 -30,000
 9 -4,049 -4,049
10 -4,000 -4,000
880,00
0
-71,549
808,45
1 0 20,000 285,000 250,000 500,000 -4,000 380,000 -12,549
1,113,451 Total Assets 496,000 367,451
863,451
1,113,451 Total Liabilities and Owner's Equity

Prepare Income Statement/ Profit and Loss Statement/ Statement of Operations/

Statement of Financial Condition
Based on the Summary of Transactions it may be easy for you to prepare income
statement. Here are some of the steps to guide you.
1. The heading at the center of the sheet: Name of your Business and the period
covered.
2. Start with the Revenue or Sales.
3. Compute your expenses and deduct from your revenue.
4. Include the signatories, who prepare, audit and approve the income statement
report.
Bestfriend’s Dress Shop
Income Statement
For the Month Ended November 30, 2020
Revenues
Sales Revenue 380,000
Expenses
Salaries Expense 8,500
Utilities 2,750
Internet Expense 1,299
Total Expenses 12,549
Net Income 367, 451

Prepared by: Audited by:

Alejandrina M. Torres Lemuel Ashley M. Torres,CPA

Bookkeeper Accountant
Prepare Owner’s Equity
Based on the Summary of Transactions it may be easy for you to prepare owner’s
equity statement. Here are some of the steps to guide you.
1. The heading at the center of the sheet: Name of your Business and the period covered.
2. Start with the Owner’s capital, the total investments or beginning capital.
3. Compute all the owner’s drawings and deduct from the capital.
4. Add net income.
5. Include the signatories, who prepare, audit and approve the owner’s equity report.
Bestfriend’s Dress Shop
Owner’s Equity Statement
For the Month Ended November 30, 2020
Owners, beg. Capital
Ms. Joana, capital 250,000
Ms. Erika, capital 250,000
Total Beginning Capital 500,000
Add Income 367, 451
Total Owner’s equity 867, 451
Less Owners’ Drawing
Ms. Joana, drawing 2,000
Ms. Erika, drawing 2,000 4,000
Total Owners equity, Nov. 30, 2020 863, 451
Prepared by: Audited by:

Alejandrina M. Torres Lemuel Ashley M. Torres,CPA

Bookkeeper Accountant

Prepare Balance Sheet

Based on the Summary of Transactions it may be easy for you to prepare balance sheet.
Here are some of the steps to guide you.
1. The heading at the center of the sheet: Name of your Business and the period covered.
2. Determine your assets, liabilities and owner’s equity.
3. Compute all your assets, liabilities and owner’s equity
4. Include the signatories, who prepare, audit and approve the balance sheet.
Bestfriend’s Dress Shop
Balance Sheet
November 30, 2020

ASSETS
Cash 808, 451
Supplies 20,000
Equipment 285,000
Total Assets 1,113,451

LIABILITIES AND OWNER’S EQUITY

Liabilities
Accounts Payable 250,000
Owner’s Equity
Owners’ capital, Nov. 30, 2020 863,451
Total liabilities and owners’ equity 1,113,451

Prepared by: Audited by:

Alejandrina M. Torres Lemuel Ashley M. Torres,CPA

Bookkeeper Accountant

Prepare Statement of Cash Flows

Based on the Summary of Transactions it may be easy for you to prepare statement of
Cash Flows. Here are some of the steps to guide you.
 1. The heading at the center of the sheet: Name of your Business and the period covered.
2. Determine your cash flows from operating activities, cash flows from investing
activities and cash flows from financing activities.
3. Include the signatories, who prepare, audit and approve the cash flows statement.
Bestfriend’s Dress Shop
Statement of Cash Flows
For the Month ended November 30, 2020

Cash flows from operating activities

Cash Receipts from revenues 380,000
Cash payments for expenses 12,549
Net Cash from Operating activities 367,451
Cash flows from investing activities
Purchase of Equipment (35,000)
Purchase of Supplies (20,000)
Cash flows from financing activities
Investments by owner 500,000
Drawings by owner 4,000 496,000
Net increase in Cash 808, 451
Cash balance at the beginning period 0000
Cash at the end of the period 808,451

Prepared by: Audited by:

Alejandrina M. Torres Lemuel Ashley M. Torres,CPA

Bookkeeper Accountant
Activities:
Day 1-4
Quarter Final Challenge

Business Plan on the Go!

To complete your business plan, let us put the soul. You may now prepare the financial
statements. Continue your activity from your previous lesson in Week 6 Business Plan
Implementation.
Learning Competency with Code
1. Identify where there is a profit and loss for a business.
2. Generate an overall report on the activity.
CS_EP11/12B-ENTREP-IV-j-4

References
2020. Accounting Tools. February 4. Accessed October 30, 2020. https://www.accountingtools.com/articles/what-are-liabilities.html.

Alicia, Tuovila. 2020. Investopedia. January 28. Accessed October 29, 2020. https://www.investopedia.com/terms/a/accounting.asp.

Carlson, Rosemary. 2020. Small Business. September 17. Accessed October 29, 2020. https://www.thebalancesmb.com/bookkeeping-101-a-
beginning-tutorial-392961.

Edralin, Divina M. 2019. "Bookkeeping." In Entrepreneruship Revised Edition, by Divina M. Edralin, 119-123. Quezon City: Vibal Group
Inc.

Murphy, Chris B. 2020. Investopedia. October 26. Accessed October 31, 2020. https://www.investopedia.com/terms/e/equity.asp.
 - Consider the teacher’s judgement in evaluating the learner’s answer.

Written Business Plan Rubric

BUSINESS NAME:
Written Business Plan Rubric Scoring Scale SCORE
Each section will be graded if it meets the requirements. It must have full explanations that provide all the necessary details

Cover Page
All information present, including:
● Business name
● Company logo (optional)
● Name(s) of the owner(s)
● Date
Table Of Contents
● Includes each major section.
● Includes page numbers.
● Organized and neat.
Executive Summary
● Type of ownership
● Management experience
● Organizational structure
Business Description
● Basic information (mailing address, phone number, website, email, etc.)
● Legal form (partnership, corporation, etc.) - be specific
● Mission statement
● Goals & objectives
● Keys to success
Product or Service Description
● Competitive Advantage
● Uniqueness of product
Market Analysis
● Behavior
● Target Market
● Promotion
● Strategy
● Commercial
Resources
● Product
● Merchandise
● Martials
● Distributors
Location Analysis
● Advantages/disadvantages of location
● Rents/costs
Financial Plan
● Start-up costs
● Pricing
● Forecasted revenue
● Preparation of Financial Statements
Structure
● Font size 12
● Double spaced
● 1" margins
● No typographical errors
● Spelling, grammar, sentence structure

Business Plan Score:

Oral Presentation Score:
 Prepared by:

Alejandrina M. Torres
Name of Writer