Fnal- Module 1 - Finalizing Evaluated Business Plan

Unit of Competency : Finalize Evaluated Business Plan

Module No. 1Module Title : Finalizing Evaluated Business Plan

Republic of the PhilippinesDepartment of Education

PUBLIC TECHNICAL -VOCATIONALHIGH SCHOOLS

TABLE OF CONTENTS

Module Title: Finalizing Evaluated Business Plan 1

How to Use this Module 1

Summary of Learning Outcomes 2

Pre-Test 3

Lesson 1 – Finalizing Evaluated Business Plan 4

Let Us Study 4

Sample of a Business Plan 5

Rubrics 20

Let Us Remember 23

How Much Have You Learned? 24

Post-Test 24

Reference 25

Key to Correction 26Acknowledgement 27

HOW TO USE THIS MODULE

Welcome to the Module “Finalizing Evaluated Business Plan/s”. This module contains instructional materials and activities for you to complete.

The unit of competency “Finalize Evaluated Business Plan” contains the knowledge, skills and attitudes required for the course Entrepreneurship.

You are required to go through a series of learning activities in order to complete each of the learning outcomes of the module. Follow these activities on your own and answer the Self-Check at the end of each learning activity.

If you have questions, don’t hesitate to ask your teacher for assistance.

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COURSE : ENTREPRENEURSHIP IV

UNIT OF COMPETENCY : Finalize Evaluated BusinessPlan/s

MODULE TITLE : Finalizing Evaluated BusinessPlan/s

MODULE DESCRIPTION : This module covers the knowledge skills and attitudesrequired in finalizing evaluated businessplan.

SUGGESTED DURATION : 10 Hours

SUMMARY OF LEARNING OUTCOMES:

Upon completion of the module the students should be able to:

LO1. Finalize Evaluated Business Plan/s

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WHAT WILL YOU LEARN?

At the end of this module, you should be able to:1. Finalize the evaluated business plan based on the criteria set.

WHAT DO YOU ALREADY KNOW?PRE TESTLet us find how much you have already know about the process of evaluating a business plan. Write the letter only of your answer in your quiz notebook?

1. Description of the target market is formed in the_________ part of the business plan.

a. Marketing Planb. Marketing Strategiesc. Operating Strategiesd. Production Strategies

2. Detailed description of products or services is in what part of the business plan?

a. Marketing planb. Production and technical planc. Operation pland. Organization and management

3. Which part of the business plan describes how the business has solved the problems?

a. Statement of visionb. The marketing planc. The problem need d. Production technical plan

4. Which part of the business plan presents the data on how the products/service will be further developed.

a. Financial Planb. Marketing Planc. Production Pland. Operation and technical Plan

5. What part of the business plan presents a clear statement of values critical to culture, integrity and activities of the business?

a. Marketing planb. Production planc. Operational pland. Statement of vision, mission and values

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LESSON IFINALIZING EVALUATED BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson deals with how to critically evaluate a business plan in order to come up with a final form.

WHAT WILL YOU LEARN?

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

1. Finalize the evaluated business plan based on the set of criteria.

2. Appreciate the importance of using business plan.

LET US STUDY

WORDS TO STUDY

Business Plan is a step by step guide in the thorough operation of the business enterprise.

Enterprise is a project activity commercial or industrial. It may also be an organizational activity.

Assessment Tool is an instrument used to evaluate a performance.

Evaluation is a rigorous analysis of completed or ongoing activities that determine or support management accountability, effectiveness and efficiency.

Component is a uniquely identifiable input, part, piece, assembly or sub- assembly, system or sub – system that:1. is required to complete or finish an activity,

item or job.2. Performs a distinctive and necessary function

in the operation of a system or;3. is identified to be included as a part of a

finished, packaged and labeled item.Criteria is the statement of need, rules, standards or

tests that must be used in evaluating a decision, idea, opportunity, program, projects, etc. to form correct judgment intended goal.

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Let us study an example of business plan with complete parts for you to use as benchmark in evaluating your fellow student’s business plan.

I. Executive Summary

Pumpkin Sorbet is cooperative in nature. It is to be run by the students themselves. Its initial capital for the first month of operation of PhP 90,000.00 will be coming from the student-owners by means of their investments as their stock in the business and from fund-raising activities as well. It is a food stall located inside the campus. Sorbet as the main product is to be manufactured by the proponents and to be sold and distributed to the target markets of 530 students daily include the MBHS students, the elementary pupils undergoing the feeding programs and selected hospitals in District II. Since the main product is made from pumpkin or squash, it promotes healthy, affordable and satisfying pumpkin derivative products. The proponents made an agreement with the MBHS administration on how they can be of help on the promotion of nutrition and on increasing the agricultural market especially on “Pagkaing Sapat Program”. They are currently on negotiation with the Principals of Cupang, Buli, and Alabang Elementary schools regarding the inclusion of the pumpkin sorbet in the dietary supplement among the students in the school’s feeding program. Since it is a vegetable-flavoured ice cream, it contains lots of nutrients like beta-carotenes and lutein.

Pumpkin Sorbet aims to be the leading producer and provider of nutritious and affordable home-made ice cream inside the campus of MBHS and other Elementary schools near the said school. The total population of MBHS is 3,219 students and based on the registered school nurse, about 60 of them is malnourished. Estimating 10% of the population will buy the product. The student-owners will be trained and guided before they handle the business to avoid lapses and misconceptions. They will be supervised by their Business Education mentors.

The management and operation of Pumpkin Sorbet starts from inventory and estimation of the volume of ice cream to be produced daily. Second is purchasing of the ingredients and raw materials needed to complete the preparation of the product. Third are production, packaging and freezing of the ice cream. Lastly, marketing and selling of the product. As a food stall, it ensures safety and sanitation of its business structures and cleanliness of the product itself. It aims to lower the price of the ice cream without sacrificing its quality. It has a shelf life of five days. Since

Since it is new in the business line of MBHS, it initially aims to capture 10% of the existing market shares which is currently dominated by school canteen’s Kyla’s Ice Cream. And Creamline Ice Cream and Dan Eric’s Ice Cream which is located within the Espeleta Street.

Pumpkin Sorbet is highly feasible, doable and socially desirable. It will help both the school and the students. This will serve as learning laboratory for the students of MBHS especially to the newbie. It will also be the inspiration for the aspiring business men to be a successful entrepreneur. The proponents of the business advocates being the leading promoter of agricultural products specifically squash. This will help increase the demands of pumpkin or squash, thereby economically promotes livelihood among the squash growing farmers in the area.

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II. Overview of the Business

I. Pumpkin Sorbet

II. Pumpkin Sorbet is both the business name and the name of its primary products. It is cooperative in nature. Specifically, it will produce a pumpkin-flavoured ice sorbet that will be dressed with sprinkles, marshmallows and peanuts that will surely fit and guarantee clientele’s satisfaction. It combines innovativeness and creativity in product concepts such as ice cream with pumpkin as the main ingredient. Dominating the existing ice cream businesses in Buli as well as in Muntinlupa will be its main thrust.

III. It envisions to be the leading provider of high quality but affordable ice cream in Muntinlupa. Continues innovation of the product will be processed to supply the needs of Muntinlupeňos. Also, it will help ease the malnutrition in Muntinlupa through the help of pumpkin-flavoured ice cream and somehow help the squash farmers in terms of increasing the consumption and demand of squash in the city.

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III. Business Plan

The Needs

A. Malnutrition is one of the major problems, Filipinos school children are facing nowadays. Malnutrition means lacking of the right nutrition needed by the body resulting which may result to poor academic achievements. This has been correlated with educational research that malnutrition affects learning abilities of the child. It is also one of the reasons behind why we have unstable economy. Being in the public school, the proponents understood most of their classmates were not eating vegetable-rich products. By these assumptions, the proponents come up with a concept that will not only satisfy the clientele’s taste but also sustain the nutrients they need to be healthy aside from the fact, that using squash as main ingredient in foods will also boosts the agricultural demand for the squash. This will benefit the squash farmers in the country. This will help us save some money for the economy and may prevent importation this vegetable.

B. Pumpkin Sorbet, a pumpkin-flavoured ice cream that will surely sustain the needs of the people, especially the poor children. Children today usually prefer meat more than vegetables. Ice cream is an all time Filipino favourite; this prompted the proponents to innovate the usual fruity ice-cream flavours with the use of vegetable such as pumpkin. The product has almost the same creaminess, puffiness, and consistency in texture as the commercially available ice-cream and will surely entice the taste of even the carnivorous children. Unknowingly they are already including vegetables in their diet.

C. The proponents believe that the clientele will support the product because of its unique flavour and appearance. With this, Pumpkin Sorbet will be instrumental in helping alleviate malnutrition cases in the country especially those who are in the public school system. This may also serve as basis for other entrepreneurs to discover and innovate more nutritious vegetable flavoured foods other than ice cream; just like for example bitter gourd, eggplant and other vegetables. The proponents believe that this will not only address the health problems of the country but the agricultural economy as well.

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IV. Vision, Mission and Values

Vision

In the name of good customer service, Pumpkin Sorbet envisions as the leading advocate of healthy and natural food products, working with squash farmers cooperative and the leading providers of the best pumpkin ice-cream by the year 2010.

Mission

Pumpkin Sorbet aims to produce and sell healthy, clean, nutritious and high quality sorbets for the clienteles and cooperatively works with the squash farmers in the city of Muntinlupa. This is through the dedication and passion of the management to produce this kind of product. In line with these, it sets a mission to achieve at least 20% return on equity after two years of operation.

Values

Pumpkin Sorbet as a business, commits to give its customers the best product it can serve. It will maintain its high standard of hard work, hygiene and sanitation in food preparation and handling and also the proper grooming and etiquette of the owners and personnel. The dedicated management will give their best to deliver with full sincerity and honesty for a better customer service. It will give a prompt, fast, accurate and best service to its clients. The management also sets to create a support system for the squash growing farmers in order to economically improve their standard of living.

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V. Market Profile

A. Research and Analysis

Today’s sorbet stalls are believed to have a little improvement for customer’s satisfaction. The proponents decided that they must undergo a careful observation in the business location. The management also underwent an official interview with the owners of current ice cream stalls in Buli. The proponents found out that customers are not that satisfied with the ice cream sold along the Espeleta Street and most of the products are not that nutritious to sustain body needs. The management believes that action must be taken primarily to make a new twist in preparing and serving ice creams that has very huge market in the nation.

The current status of squash growing farmers in the city where the squash supply are to be taken was also observed and given attention in order to support them when the business starts its operations.

With these premises, the proponents decided to produce pumpkin-flavoured ice cream which will answer the needs of the students in the area. The market will be four (4) Elementary Schools and one (1) Secondary School. The target students are those who are malnourished and member of feeding program.

B. Marketing Plan

Table 1Number of Target Ice Cream Buyers per Consumer Group

Populace MBHS

Feeding Program Members

TotalMBHS

AlabangES

SucatES

BuliES

CupangES

Total 3,160 60 87 84 45 68 3,504

Daily 316 36 52 50 27 49 530Monthly 6,952 792 1,144 1,100 594 1,078 11,660Yearly 83,424 9,504 13,728 13,200 7,128 12,936 139,200

Based on the given consumer groups, the daily, monthly, and yearly target buyers are reflected through the assumption that 10% from MBHS group will buy ice cream from Pumpkin Sorbet and 60% from those feeding program members will buy every three days. During summer vacation, Pumpkin Sorbet will only serve their products in different hospitals where we can assure the sale and can help patient in sustaining their health.

VI. Production/Technical Plan

A. Product Description

Pumpkin Sorbet is a business selling a pumpkin- flavoured sorbet. The finished product will be placed in a plastic cup and depending on the consumers, they will choose if they want their sorbet to have a dressing (sprinkles) or added flavour. The product as researched was proven nutritious palatable. Today’s

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Ice Creams are not that nutritious and of with poor quality. Pumpkin Sorbet made it with a new twist by means of using vegetable like squash as the main ingredient. The individual finished products will be package in a cup with design. There will also be packaging for wholesale purchases

B. Operating Strategies

The business will produce a pumpkin sorbet station with high quality contents and nutritious value as well. Pumpkin Sorbet will need raw materials to produce the goods to be sold. These include All- Purpose Cream, Condensed Milk, Cassava Starch, Cheese, Gelatine Powder, Powdered Milk, Vanilla Essence, and the main ingredients, Pumpkin. The proponents will be the one to produce the product. Raw materials will be purchased at Alabang Market or Lianas Supermarket where we can assure the quality and the aspects of perish ability. The proponents tried to interview the teachers and some students by offering them a free taste and made a comment after. During the operation, the business will think of more ideas on how to create more appealing and attractive products.

C. Critical Risk

Table 2Pumpkin Sorbet’s Position in the Market

Competitors Market Share TargetKyla’s Ice Cream 35% 30%

Dan Eric’s Ice Cream 45% 40&Cream Line Ice Cream 20% 20%

Pumpkin Sorbet 10%

Based on the table showed, there are three competitors who dominate the market of Ice Cream in Buli. Pumpkin Sorbet aims 10% of the market share. Through creativity, uniqueness and innovation, the management believe that it will be achieved.

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VII. Organizational Plan

A. Team Members

Figure 1: Organizational Chart

B. Contribution to the Business

Owners– it is responsible for the management and accountability of the business itself, at the same time they are the ones who will produce the product.

Sales Personnel – it is responsible for the advertisement, selling promotion of the product.

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VIII. Operational Plan

A. Workflow

Pumpkin Sorbet has a very simple operational plan. It starts from inventory and estimation of the volume of ice cream to be produced daily, then Purchasing of Ingredients and raw materials needed. After purchasing, the production, packaging and freezing. Lastly, the marketing or the selling of the product.

B. Monitoring and Evaluation

Pumpkin Sorbet will manufacture at least thirteen (13) gallons of ice cream per day. It takes less than an hour to prepare the mixtures before freezing. The three (3) proponents divide the work among themselves. The production hour will be done after classes so as not to affect their studies. Since the shelf life is about 28 days, the possibility of producing for advance demand is highly considered. It will supply four (4) Elementary Schools (gallons each) and a Secondary School that will serve as its main market (4 gallons).

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IX. Sustainability

I. Financial Plan

Pumpkin Sorbet will need at least PhP 90,000.00 to start its operation in the market. This will be coming from the investments of the students who are willing to be involved in entrepreneurial practice like this. Also, since two of the proponents are Club Presidents and the other one is MBHS Chorale Leader, they may combine their talents to conduct fund raising activities to increase the capital investment of the business.

Table 3Monthly Expenses of Pumpkin Sorbet

Product/Service Unit Price Quantity TotalFixed Cost of Pumpkin Sorbet:

Rental PhP1,000.00 1 month PhP 1,000.00Salaries 5,000.00 3 crews 15,000.00Advertising 1,000.00 1 month 1,000.00Depreciation Account- Freezer(Small)

13,000.00 1 Freezer 1,300.00

Depreciation Account- Blender 770.00 2 Blenders 140.00Depreciation Account- Chairs and Tables

1,800/set 2 sets 300.00

Depreciation Account- Tools and Utensils

900.00 2 set of tools & utensils

180.00

Utility and Sanitation 1,500.00 1 month 1,500.00

(A)Total Fixed Cost PhP 20,420.00

Variable Cost:Raw Materials:Plastic Spoons 25.00 66 packs 1,650.00Packaging (Plastic Cups) 50.00/pack 66 packs 3,300.00All Purpose Cream 38.50 572 tetra packs 22,022.00Condensed Milk 36.50 286 cans 10,439.00Alsa Gulaman 39.50 143 boxes 5648.50Cassava Flour 25 1.5 kilo 37.50Powdered Milk 41.50 57 packs 2,365.50Vanilla Essence 14.00 95 bottles 1,330.00Cheese 23.50 95 bar 2,232.50Electricity 1,000.00 1 month 800.00Communication Bills 800.00 1 month 600.00Water Supply 600.00 1 month 400.00Transportation 300.00 1 month 250.00Miscellaneous 1,500.00 1 month 500.00

(B) Total Variable Cost PhP 51,575.00

(A+B) Total Cost of Production PhP 71,995.00

Table 3 shows the variable and fixed cost in the operation of

Pumpkin Sorbet. This will serve as basis for computing the breakeven point sales price and volume. Based on the total FC & VC, the business is capable of producing 286 gallons per month.

Table 4

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PROJECTED REVENUE

Ice Cream Flavour

Costing

Projected Volume (in cups)

Daily Revenue

Projected Volume Monthly

RevenueYearly Projected

RevenueDaily Monthly

PumpkinC-5

530 PhP 3,710.00 11660PhP

81,620.00 PhP 979,440.00M-2SP-7

LEGEND:Cost – CMark-up - M Sales price – SP

Table 5MONTHLY PROJECTED COST & REVENUE

Jan Feb Mar Apr May Jun

Revenue 81,620.00

81,620.00 81,620.00 81,620.00 81,620.00 81,620.00

Cost 71,995.00

71,995.00 71,995.00 71,995.00 71,995.00 71,995.00

ProjectedNet Profit

9,625.00 9,625.00 9,625.00 9,625.00 9,625.00 9,625.00

Jul Aug Sep Oct Nov Dec Total

81,620.00 81,620.00 81,620.00 81,620.00 81,620.00 81,620.00

PhP 979,440.00

71,995.00 71,995.00 71,995.00 71,995.00 71,995.00 71,995.00 PhP 863,940.00

9,625.00 9,625.00 9,625.00 9,625.00 9,625.00 9,625.00 PhP 283,500.00

Break-Even GuideTotal Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)When TR is > then FC and VC means the business is earning profit.When TR is < then the FC + VC means the business is losing.When TR = then FC + VC, the business is break-even.

Table 5 shows the monthly projected cost & revenue. As shown, the business projected Php 979,440.00 gross sales for a year which is greater than the cost at Php 863,940.00. thus, a net annual profit of Php 283,500.00. This is 32.81%% of the total cost.

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Table 6Project Cost

PARTICULAR EQUITY LOAN TOTALFixed Assets

Equipments PhP 6,440.00 PhP 15,000.00 PhP 21,440.00

TOTAL PhP 6,440.00 PhP 15,000.00 PhP 21,440.00

Other Assets

Rent Deposit PhP 3,000.00 0.00 PhP 3,000.00

Working Capital (3 months)

Supplies and Materials PhP 30, 075.00 PhP 117,000.00 PhP 147,075.00

Other Operational Supplies

PhP 7,650.00 0.00 PhP 7,650.00

Salaries PhP 20,000.00 PhP 25,000.00 PhP 45,000.00Rent PhP 3,000.00 0.00 PhP 3,000.00Utilities PhP 4,500.00 0.00 PhP 4,500.00

TOTAL PhP 207,225.00

Pre-Operating Expense

PhP 15,000.00 0.00 PhP 15,000.00

Grand Total (Pesos) PhP 89,665.00 PhP157,000.00 PhP 246,665.00

Grand Total (%) 36.5% 63.5% 100%

Table 7Loan Repayment Schedule

YEARTOTAL

AMORTIZATION

INTEREST PRINCIPAL BALANCE

0 PhP157,000.00

1 PhP 180,550.00 PhP 23,550.00

PhP157,000.00 0.00

2 0.00 0.00 0.00 0.003 0.00 0.00 0.00 0.00

**Interest at 15%

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Table 8Pumpkin Sorbet

PROJECTED INCOME STATEMENT FOR THE YEARS ENDED 2008- 2010

2008 2009 2010REVENUE PhP 979,440.00 PhP 1,175,328.00 PhP1,410,393.60

Cost /Expenses PhP 863,940.00 PhP 1,036,728.00 PhP1,244,073.60Projected Net Income PhP 115,500.00 PhP 138,600.00 PhP166,320.00

Projected Income for the year is expected to by at least rise by 20%

Table 9CASH FLOW 1ST QUARTER OF 2008

Projected Cash Flow Statement

Particulars Pre- OPYear

1 2 3

Cash InflowCash Equity

Loan ProceedsCash Sales

PhP 89,665.00PhP157,000.0

0-

PhP 979,440.00

--

PhP1,224,300.00

--

PhP 1,591,590.00

Total Cash Inflow PhP 246,665.00

PhP 979,440.00

PhP1,224,300.00

PhP 1,591,590.00

Cash OutflowRental DepositPre- Operating

ExpensesPurchase of F/A

AssetsSelling Expenses

Tax PayableLoan Amortization

PrincipalInterest

-PhP 3,000.00

PhP 15,000.00PhP 21,440.00

-----

----

PhP 157,725.00

PhP157,000.00PhP 23,550.00

----

PhP 157,725.00PhP 157,671.00

---

----

PhP 157,725.00PhP 189,205.63

---

Total Cash Outflow PhP 39,440.00 PhP 338,275.00 PhP 315,396.00 PhP 346,930.63

Net Cash Inflow PhP 286,105.00

PhP 431,165.00 PhP 908,904.00 PhP 1,244,659.37

Add: Cash Balance, Beg.

- PhP 286,105.00 PhP 717,270.00 PhP 1,626,174.00

Cash Balance, Ending PhP 286,105.00

PhP 717,270.00

PhP 1,626,174.00

PhP 2,870,833.37

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II. Social Impact

A. Long- Term Desired OutcomesPumpkin Sorbet will supply the feeding program members in

different schools near the location including Alabang Elementary School, Cupang Elementary School, Buli Elementary School and Sucat Elementary School. The proponents will also prioritize the patient in the hospital. They are currently on negotiation with the Principals of Cupang, Buli, and Alabang Elementary schools regarding the inclusion of the pumpkin sorbet in the dietary supplement among the students in the school’s feeding program. Thus, Pumpkin Sorbet expect that within three years of operation it can fund its own feeding program and an advocacy program for squash growing framers as part of their corporate social responsibility.

B. Social Impact in the CommunityThe business will not only help the malnourished children in the

community but to help the producers of these goods that will be the main thrust of the business. It will implement an On-the-Job Training of the students inside the Muntinlupa Business High School as a preparation for their official training in work. The proponents of the business will also be the educator of the students taking the T.V.E.( Technical Vocational Education)- Food Processing since our school is implementing this hind of curriculum. This will be a great help for them in case they are planning to build their own business in the future.

C. Business Impact in the Community Pumpkin Sorbet believes in co- existing with nature and business environment. It will increase market demand for pumpkin growers or squash farmers who produce this agricultural product. This will help the government prevent importation of pumpkins from neighbouring Asian agricultural countries. Since the main product is made from pumpkin or squash, it promotes healthy, affordable and satisfying pumpkin derivative products. The proponents made an agreement with the MBHS administration on how they can be of help on the promotion of nutrition and on increasing the agricultural market especially on “Pagkaing Sapat Program”. The business has the potential to survive in the market because of its affordability, high nutritional value and have high social desirability.

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Here is a set of criteria which will guide you in evaluating the business plan of your classmate.

RUBRICS FOR BUSINESS PLAN PAPER EVALUATION

Description Rubric Rating 10 8 6 4

Executive Summary

Personal Details I. Names & Brief Biography II. Name of Adviser/s & Brief Biography Overview of the Business I. Name of the Business II. Description of the Business Model III. Statement of Vision, Mission, and Values Business Plan Proper I. The Problem/Need A. Description of the exact problem/need

addressed

B. Reasons/rationale why the problem/ need

must be addressed by the business

C. Descriptions on how the business has

solved the problem/need

II. Statement of Vision, Mission , and Values A. Vision Description/statement of what the proponent

sees if the problem/ need are solved.

B. Mission Clear description of goals and objectives that

present practical steps to achieve the vision.

C. Clear statement of values critical to the

culture, integrity and activities of the business

III. The Marketing Plan A. Research & Analysis 1. Description of the Target Market 2. Market Size 3. Competition/Market Share 4. Market Trends B. Marketing Strategies 1. How the product/service be introduced

in the market?

2. How will the customers be reached and

served?

3. How will the investors be served? 4. Description of the business ownership,

roles of the partners.

5. Value Added Features

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6. Location of the business IV. Production and Technical Plan A. Detailed description of products/services B. Operating Strategies 1. Description/Illustration of production model 2. Detailed description of raw material,

suppliers, transportation needed and how these will be accessed. 3. Details/data presented on how the

Products/services will be further developed and the help needed and the agency or company who can do it.

C. Critical Risks a. Data on existing competitors b. Statement on how the proposed business

is different from the others

c. Description/Illustration of the proposed business' competitive strategy

d. Partners are identified, their roles, and added value to maximize impact.

e. Detailed description of the risks and

opportunities (SWOT Analysis)

f. Description on how the business would

capitalize to prevent the risks.

V. Organizational/Management Plan A. Members of the team B. Team's contribution to the business C. Others who can be part of the team VI. Operational Plan A. Detailed description on how the business will be implemented. a. Assignment of tasks b. Schedules of deliverables c. Data of necessary resources d. Description/Illustration of operational

model and work flow f. Description of business back progress and

division of works

g. Data on estimates of the business operations

B. Monitoring and Evaluation a. Statement of outcome the business will

achieve based on targets

b. Descriptions/Illustrations on how you will

monitor achievement

c. Statement of performance targets d. Time line on when the targets will be

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achievedSustainability I. Financial Plan (This includes strategies for fund raising.) A. Soundness of the average investment needed B. Data/Scheduled of the specific investments

needed in 1 - 2 years

C. Percentage share on investments/capital of

each member of the proponents

D. Detailed description on how funds will be raised to start the business

E. Data/Statement on how many years the

business will earn profit

II. Social Impact A. Statement of the business' long-term desired

outcomes

B. Statement of the social impact generated from

each of the business activities

C. Statement/data on the benefit and impact of the business to the community

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ACTIVITY: A. based on the given example of a business plan with its major

components, formulate one question per component to test if a business plan meets a given standard using the rubric.

B. Now after you have formulated your questions, let it be validated by your teacher which you may use in the evaluation of your classmate’s business plan.

LET US REMEMBER

Business Plan is a blueprint to guide your business policies, operation and strategies. It details the past, present and forecasted performance of your business.

LET US APPLY WHAT YOU HAVE LEARNED

Being an entrepreneur, you must have an effective business plan. You should follow the steps in preparing a

business so that the data must be accurate and adequate. This will help you to choose the appropriate and effective strategies to ensure success in your business venture.

ACTIVITY: Think of a simple business you want to engage in.Make a sample business plan of that business using the

format below:

Business Name : Location : Name of Owner :

Introduction :

is a registered business engaged in owned by .

Business goals are as follows:

a. The operation started on b. The location could be reached by c. The business could be expanded by

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Table of ContentsSection I : The Business

1. Description of the BusinessThe business is engaged in the distribution of or production, or of servicing customers.

2. Product/Service The product/service is

3. MarketProduction will be distributed in (mention primary and secondary market) The clients belong to (description of the socio-economic level). The product is bought by clients for the following reasons:

4. Location of the BusinessThe business is located at It can easily be reached by .

5. Competitors are as follows: (State the name of the company and other relevant facts such

as size and possible sales)

A competitor’s profile includes price, quality, location, image projected, strategies of selling and operations.

6. PriceThe current price is _____. It is derived from the following factors: (production cost and marked up costs) .

7. Marketing strategiesThe product will be distributed in the following manner:

8. ManagementThe management group is composed of the following (name, position, responsibility and qualification)

9. PersonnelThe personnel needed are the following (enumerate the type of work and their qualifications)

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Summary of Section One

Section II: Financial Data

1. Sources and application of funding:Secure financial assistance from

For the following purposes Using the following collaterals

2. Capital Equipment ListThe capital and equipment lists are the following: Briefly describe the equipment and their uses. Include processes employed in the production)

3. Balance SheetThis is a statement of the financial condition of an enterprise at a given point in time usually only a focus, quarterly, semi-annually or annually. It shows the owner how money has been invested and the accrued profit or losses.

4. Break-even Analysis(It is a tool used by an entrepreneur in solving managerial problems). It compares the total resources (TR) with the total cost (TC)

TR represents income while TC represents expenses of the enterprise. When TR is greater than TC, there is profit. But when TR equals TC it is break even. There is no profit, nor loss.

5. Income Projection (Profit-Loss Statement)a. Detailed by month(for the first year)b. Detailed by quarter (for the 2nd, 3rd, 4th, 5th)

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HOW MUCH HAVE YOU LEARNED?

POST TEST

Direction: Select the letter of the best answer and write it on your quiz notebook.

1. Description of the target market is formed in the_________ part of the business plan.

a. Marketing Planb. Marketing Strategiesc. Operating Strategiesd. Production Strategies

2. Detailed description of products or services is in what part of the business plan?

a. Marketing planb. Production and technical planc. Operation pland. Organization and management

3. Which part of the business plan describes how the business has solved the problems?

a. Statement of visionb. The marketing planc. The problem need d. Production technical plan

4. Which part of the business plan presents the data on how the products/service will be further developed.

a. Financial Planb. Marketing Planc. Production Pland. Operation and technical Plan

5. What part of the business plan can present a clear statement of values critical to culture, integrity and activities of the business?

a. Marketing planb. Production planc. Operational pland. Statement of vision, mission and values

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RESOURCES

- learning guide- business plan- assessment tool

REFERENCES

Adams, Bob, Small Business start – Up, Adams Media Corporation, USA 1996

Peters, Hisrich, Entrepreneurship, MgGraw Hill Book Co. Singapore 1999

Rojo, Luz V. et.al Business Management, Adriana pubishing Co. INC. Manila. 2003

Pumpkin Sorbet, Cabantog, Levy Jr., Rivamonte Gilvar, Bautista, Jayvee, A Business Plan presented to the Board of Judges, National Student Technologists and Entrepreneurs of the Philippines, Business Planning Competition 2007, Davao City, Philippines, November 21, 2007

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KEY TO CORRECTION

1. A2. B3. C4. D5. D

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ACKNOWLEDGMENT

Copyright Department of Education 2009

This module was based on the Writeshop on the Development of the Competency-Based Curriculum (CBC) for Entrepreneurship for Technical Vocational High School conducted at Marikina Hotel Marikina City, May 25 – 30, 2009

This learning instrument was developed by the following personnel:

Dr. Reynaldo M. ValdezJones Rural SchoolGroup Leader

Dr. Celedonia T. TenezaBenigno Aquino High School

Mr. Gilbert CamayangCabrroguiz National School of Arts and Trade

Mr. Alfonso P. Rodriguez Jr.Muntinlupa Business High School

Mr. Fernando C. AgustinBukig National Arts and Trade School

Mrs. Leona M. TomasSan Pedro National High School

Writer/Facilitator:Mr. Rene G. DelfinoMuntinlupa Business High School

Editor: Dr. Estrellita Evangelista

Encoder: Mrs. Marisol E. Saldivar

Funding: Department of Education

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ACKNOWLEDGMENT


This module was based on the Writeshop on the Development of the Competency-Based Curriculum (CBC) for Entrepreneurship for Technical Vocational High School conducted at Marikina Hotel Marikina City, June 5 -7, 2009




Mr. Alfonso P. Rodriguez Jr.Muntinlupa Business High School

Writer/Facilitator:

Mr. Rene G. DelfinoMuntinlupa Business High School

Editor: Dr. Estrellita Evangelista



29

ACKNOWLEDGMENT


This module was based on the Writeshop on the Development of the Competency-Based Curriculum (CBC) for Entrepreneurship for Technical Vocational High School conducted at Marikina Hotel Marikina City, July 1to 5, 2009




Writer/Facilitator:

Mr. Rene G. DelfinoMuntinlupa Business High School

Editor: Carolina F. Chavez, Aida T. Galuran, Beatriz A. Adriano

& Dr. Corazon C. Echano



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TABLE OF CONTENTS

Module Title: Finalizing Evaluated Business Plan Page

How to Use This Module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Summary of Learning Outcome . . . . . . . . . . . . . . . . . . . . . . . . . 2

What Will You Learn What Do You Already Know Pre – Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Lesson 1 : Finalizing Evaluated Business Plan. . . . . . . . . . . . . . . 4What is this Lesson About What Will You Learn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Let Us Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Activity Let Us RememberLet Us Apply What You Have Learned . . . . . . . . . . . . . . . . . . . . 6

Post Test

How Much Have You Learned . . . . . . . . . . . . . . . . . . . . . . . . . . 7Post Test

Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Key to Correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

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Documents

Fnal- Module 1 - Finalizing Evaluated Business Plan