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Contact Nos.: +63917-127-8500 | +63912-448-6518

ENTREPRENEURSHIP
SECOND SEMESTER, AY 2020-2021

MODULE 1

Maricon S. Jandusay
Teacher
Name: Shaira Alyana Soriano
Section: Grade 12- ABM
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 WELCOME TO………
MODULE 1 – The Development of the Business Plan

INTRODUCTION:

In this module, we will learn about the development of the business plan.
The development of the business plan introduces the learners to the different types and
purposes of a business plan, as well as its contents and format. The learners are then
introduced to the OSSS ( Opportunity Seeking, Screening, And Seizing) framework
where they will learn to scout for opportunities, evaluate the many possible opportunity
found, focus on the most promising ones, and eventually, establish an enterprise to
actualize the best opportunity chosen.

OBJECTIVES:

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

 Determine the importance of business plan

 Identify the contents of a business plan
 Understand the opportunity seeking

ARE YOU READY? LET’S GO…………

Then let’s proceed

PRE-TEST..

The 10-item test to follow is a pre-test for me to gauge your ideas about module 1. You
have nothing to worry about this, however, you have to answer all these items and it is
mandatory. Give your answer by just encircling the letter of your choice.

NOW GO… GOOD LUCK..

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1. What is a Business Plan?
a. A gallery of photos that explains the location and construction of the
business
b. A gallery of photos that explains the location and construction of the
business
c. A gallery of photos that explains the location and construction of the
business
d. none of the above are correct; a business plan is simply a list of
guidelines that tell successful business's how to run their
company in order to make a profit
2. What should the aspect of the cover sheet or table of contents NOT include?
a. owners name, company name, and the business's address
b. website, email address
c. the business logo
d. the competitors of that business
3. What should the aspect of the company description include?
a. diagrams, photographs
b. back up description of the target market, why your idea will be
successful and capture the market and why the opportunity is present
c. vision and mission statement
d. all of the above
4. What is the most important part of your business plan?
a. Executive Summary
b. Background
c. Table of Contents
d. Financial Plan
5. Which of the following parts of a business plan include the cash flow projection
and the repayment plan?
a. Background and History
b. Market Research
c. Executive Summary
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 d. Financial Plan
6. Which part of the business plan explains the process of attraction of customers to
your business and how you determined the appropriate customers?
a. Market Research/ Analysis
b. Background and History
c. Financial Plan
d. All of above
7. What is the difference between the Start Up plan and the Occupational Plan?
Which statement is correct?
a. The Occupational Plan tells where you want and plan to start the
business.
b. Start Up Plan- explains why you chose the business frame and
location
c. Occupational Plan describes in detail how your business will operate
d. Start Up Plan- Includes diagrams of production or areas of service
8. What does the area of Background research or History explain?
a. Describes yourself and what experiences you bring to the venture
b. Includes the address of the business and the owner's contact
information
c. describes the customers basis that the product will suit
d. It includes all of the above
9. What are the advantages of creating a business plan?
a. It allows the entrepreneur to focus on what they want to accomplish
b. Allows them to accomplish their desired task
c. Allows the process they will take to do it become simple and easy
d. All of the above
10. Where do you state the vision for the company, how much money you need, and
how you hope to pay the money back well as the opportunity?
a. Executive Summary
b. History
c. Financial Plan
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 d. Table of Contents

LESSON 1: Planning the

Enterprise

What is a Business Plan For?

Entrepreneurship who plan to enter any business endeavor must have a business plan
on hand to guide them throughout the process. Different business plans are prepared
for different purposes. There are business plans written prior to setting up an enterprise,
which are similar to a prefeasibility study and a feasibility study. Many new enterprises
need to convince prospective business investors about the soundness and potential of
their business. They need to convey the capabilities and competencies of their owners
and managers. They must also be able to sell the proponent and the business
proposition to this audience. These are situations when a good business plan is
needed.

The business plan must have a specific audience in mind and what important questions
do this audience want answered. In order to aid the entrepreneur in getting his or her
business plan organized, the following format may be a good start.

I. Introduction
A. The Business Concept and the Business Model
B. The Business Goals; Vision, Mission, Objectives and Performance
Targets
C. The Business Offering and Justification
II. Executive Summary
III. The Business Proponents: Organizers with their capabilities and contribution
IV. The Target Customers and The Main Value Proportion to the Customer
V. The Market, Market Justification based on the Industry Dynamics and the
Macro Environmental Factors Affecting the Opportunities and Threats in the
Market, the Size, Potential and Realistic Share of the Market.
VI. The Product and Service Offering
VII. The Enterprise Strategy and Enterprise Delivery Systems: Business
Competitiveness
VIII. The Financial Forecasts and Expected Returns, Risks and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offering: Returns and Benefits to
Investors, Financiers, and Business
5 Partners.
The Business Concept and the Business Model

A business concept contains the essence of the enterprise in a concise but powerful
manner. It stresses the value of the product offering to the target customers who would
most likely buy it.

The product concept must then be translated into a business model. A business model
is a formula on how the enterprise exactly plans to make money out if the business.
There are four areas of moneymaking which the business model must address:

1. How will the business raise revenues? What critical factors will cause the
revenues to materialize?
2. What will be the costs of the enterprise products and other costs of doing
business? How will these costs be managed to ensure comfortable profits?
What critical factors will drive the costs? How can these factors be controlled?
3. How will the enterprise finance the investments? How will the enterprise fund
its growth?

The Business Goals: Vision, Mission, Objectives and Performance Targets

The business goals show the future and long term prospects of the enterprise. It is
composed of the vision, mission, objectives, key result areas and performance
indicators of the enterprise.

The Executive Summary

The executive summary contains everything that is relevant and important to the
business audience. It is a synthesis of the entire plan. It must contain the major
argumentations of the business proponent on why the business will work and succeed.
It should provide the business plan audience all the arguments on why they should
participate in the business venture.

The executive summary should then introduce and highlight the good qualities of:

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 1. The business proponents and their partners

2. The enterprise organization and its capabilities

3. The technology providers and their expertise and experience; and

4. The supplier and all the major service providers.

The Business Proponents

The third section of the business plan contains information about the business
proponents or stakeholders. There are four types of stakeholders:

1. Resource mobilizers and financial backers

2. Technology providers and applicators
3. Governance and top management
4. Operating and support team

The Target Customers and the Main Value Proposition

The fourth section of the business plan is the Target Customers and the Main Value
Propositions. The business proponent must be very precise about the target audience
or target customers. Target Customers must be of sufficient size, sufficient paying
capacity and have sufficient interest to purchase the products being offered by the
enterprise. The Main Value Proposition is the unique selling proposition of the
enterprise.

Market Demand and Supply, Industry Dynamics, and Macro Environment Factors.

The fifth section of the business plan is the market demand and supply, the industry
dynamics, and the macro environmental forces affecting the business of the enterprise.

It is normal for enterprise to actually expand their product offerings to include the other
segments of a bigger market. The business proponent should examine all the
opportunities in this bigger market in order to determine what exactly influences this
bigger market.

Product/ Service Offering: Description, Evolution, and Justification

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The sixth section of the business plan is the product/service offerings that should
contain a description, evolution and justification of the product/service offerings.

The products/ Services must be described by highlighting the features and attributes
that would most appeal to the target customers. The business plan should also prove
that the products/ services would be accepted and carried by the distribution channels.

Enterprise Strategy and Enterprise Delivery System

The business plan should expound on the Enterprise Strategy (ES) by mapping the
competitive landscape and by sitting the enterprise and its competitors as to their
strategies and chosen positioning.

The business plan should then show how the Enterprise Delivery System (EDS) would
enable the business to implement the Enterprise Strategy.

Financial Forecasts: Expected Returns, Risks and Contingencies

The eighth section of the business plan is the financial forecast including the financial
returns, the financial risks, and financial contingencies.

The business plan must translate everything that we have discussed so far into financial
forecasts and outcomes.

From the financial forecasts, the business plan should then calculate the expected
returns from the business. The important return calculations are the following: 1.
Expected return on sales; Expected return on assets or investments; and expected
return on stockholders’ equity.

Environmental and Regulatory Compliance

The ninth part of the business plan is composed of the environmental and regulatory
compliance.

The business plan must articulate the laws, rules and regulations governing the
business, and the industry that the enterprise is in. It should ascertain that all the

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necessary permits, licenses and authority to use proprietary intellectual capital had
either been secured or would definitely be secured.

Capital Structure and Financial Offering: Returns and Benefits to Investors,

Financiers and Partners.

The tenth section of the business plan contains the capital structure and financial
offerings of the enterprise including some discussions on who are the investors, the
financiers, and the partners of the enterprise.

Finally, the business plan must appeal to its target audience. It must highlight for them
the main features of the businessLESSON
plan that ACTIVITY
they are looking
1.0 for.
Prepare an initial outline of how you want your own business plan to look like. This
assumes that you already have a business endeavor that you would want to enter
into. In order to prove its business viability, the next lessons will show you how to do
step by step process of discerning whether the business idea you have will be worth
your while.
You may have to answer the following questions:
What will be the contents of each section?
How extensive will each section be?
Which audience will you prioritize in terms of customizing the contents of your
business plan?

LESSON ACTIVITY 1.1

List the importance of a BUSINESS PLAN
The importance of a business plan are:
 9
It will help you with critical decisions
 It will prove the viability of the business
 To secure finncing
 To reduce risk
 To better understand the broader landscape
 LESSON 2:
Opportunity
Seeking,
Screening, and
Seizing

OPPORTUNITY SEEKING

Entrepreneurs are innovative opportunity seekers. They have endless curiosity to

discover new or different ideas and see whether these ideas will work in the
marketplace. This is what separates entrepreneurs from the ordinary businessman
whose main objective is simply to earn profits from producing, buying, and selling
goods.

Entrepreneurial Mind Frame, Heart Flame, and Gut Game

Essential to an entrepreneur’s opportunity seeking are the entrepreneurial mind frame,

heart flame, and gut game.

The entrepreneurial mind frame allows the entrepreneur to see things in a very positive
and optimistic light in the midst of crisis or difficult situations. Instead of being
discouraged, the entrepreneur is able to use these problematic situations as inspiration
in creating something innovative. In fact, in Chinese writing, the word crisis is composed
of two characters. The first character means danger while the second character means
opportunity.

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If there is one commonality between an inventor and an entrepreneur, it is their surging
passion or the entrepreneurial heart flame. Driven by passion, they are drawn to find
fulfillment in the act and process of discovery.

Many Sources of Opportunities

Macro Environment Sources of Opportunities

1. Socio-Cultural Environment
2. Political Environment
3. Economic Environment
4. Ecological Environment
5. Technological Environment

Industry Sources of Opportunities

After the macro environment, the next biggest sources of opportunities are the industry
and the market. One of the most difficult aspects about industry analysis is defining
what constitutes an industry in the first place. The proper classification of what industry
the enterprise is competing in is important if the entrepreneur’s intention is to define who
are the relevant customers, who are the direct and indirect competitors; and what are
the critical characteristics of the market as to the quality of products or services to be
delivered.

Market Sources of Opportunities

The entrepreneur must also be able to measure the actual demand and supply as well
as the potential demand and supply of the industry that the enterprise belongs to.
Equally important is the monitoring of the prevalence of product substitutes and their
market impact on the existing players in the industry. Lastly, market traits,
characteristics, and behavior are identified in order to match these customer traits with
the product offering of the enterprise.

Micromarket

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Micromarket refers to the specific target market segment of a particular enterprise.
These are the target customers that represent the immediate customers of an
enterprise, meaning those who are currently buying the goods or services offered by the
enterprise and its direct competitors. It likewise pertains to a clearly defined location or
specific customer group that an enterprise wishes to serve.

Consumers Preference, Piques and Perception

Consumer preferences refer to the tastes of particular groups of people. Some

examples are the clothes people wear, the music they listen to, and the movies they
watch. The consumer’s age, culture, and status affect their preferences. In contrast,
consumer dislikes refer to the things that irritate customers. Either way, the
entrepreneur can explore opportunities brought about by consumer preferences or
dislikes.

Other Sources of Opportunities

1. Customer preferences change over time

2. People tastes in clothes, music, shoes, entertainment, dance, sports, hobbies
and even careers have evolved over the years.
3. What piques customers is a great source of opportunities
4. Before the customer is won over, there is first a battle for the mind. Next, there is
a battle for the heart. Finally, there is a battle for the wallet.
5. The longer the customer wants to use the product, the greater the chance of
creating lasting loyalty.
6. Opportunities abound in shaping consumer perceptions or occupying spaces in
their minds or places in their hearts that have not yet been filled.
7. New inventions, new systems and work progress, new insights about the human
psyche, new applications for old knowledge, new revelations about how the
physical world works, new interpretations, new combinations based on the
convergence of previous technologies, new outlooks about how life should be
led, and a host of other new things are tremendous sources of opportunities.

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 8. Determining personal preferences and competencies lay the foundation for a
new business venture.
9. Unexpected occurrences in both the external and internal environment of the
enterprise indicate that significant changes are happening and opportunities are
sprouting.

OPPORTUNITY SCREENING

After opportunity seeking comes the rigorous process of Opportunity Screening.

Because of the money opportunities possible for the entrepreneur, it is important to
come up with a short list of a few very promising opportunities, which could be
scrutinized in detail.

The Personal Screen

In screening opportunities, the entrepreneur first has to consider his or her preference
and capabilities by asking three basic questions;

1. Do I have the drive to pursue this business opportunity to the end?

2. Will I spend all my time, effort and money to make the business opportunity
work?
3. Will I sacrifice my existing lifestyle, endure emotional hardship, and forego my
usual comforts to succeed in this business opportunity?

The 12 Rs of Opportunity Screening

1. Relevance
2. Resonance
3. Reinforcement Of Entrepreneurial Interest
4. Revenues
5. Responsiveness
6. Reach

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 7. Range
8. Revolutionary Impact
9. Returns
10. Relative Ease of Implementation
11. Resource Required
12. Risks

The Pre- Feasibility Study

The ultimate goal of doing the opportunity screening matrix is to narrow down the many
opportunities into one or two most attractive ones. The next step is to conduct a pre-
feasibility study to ascertain the viability of the opportunity. The idea is to focus on a few
key items that could make or break the business concept. This time, the entrepreneur
must go down to the details and take time to consider the following factors that are
contained in a pre-feasibility study:

 Make potential and prospects

 Availability and appropriateness of technology
 Project investment and detailed cost estimates
 Financial forecast and determination of financial feasibility

OPPORTUNITY SEIZING

After Opportunity Seeking and Screening, the entrepreneur is ready for Opportunity
Seizing, the final stage. By now, the entrepreneur has an idea as to where he or she will
locate the business and how he or she will market the product or service. At this stage,
the entrepreneur must be able to determine the critical success factors that enable other
players in the same industry to succeed while, at the same time, be vigilant about those
factors that cause other businesses to fail.

Crafting a Positioning Statement

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In order to craft a positioning statement, the entrepreneur is advised to look at other
competitors (or substitutes) in the marketplace. Going through the process of
questioning, the entrepreneur will be able to come up with each of the competing
products’ Main Value Proposition (MVP) and from there, work his own positioning. The
following key points can help out the entrepreneur on how to go about this questioning.

1. What is the main customers segments?

2. What are the different product attributes and features of each of the competitors?
3. What are the existing marketing practices of the various competitors?
4. What are the market preferences of consumers when it comes to the products
being offered?

LESSON ACTIVITY 2.0

THE MILLION PESO INVESTMENT

An investor has given you Php 1,000,000.00 to start a business in response to the
opportunities that you have figured out on your own. What would you do?
To help you out with this project, follow the instructions below:
1. List at least five opportunities that can be found in your surrounding area.
2. Compile the listed opportunities and business proposals into a report
following the format below.

Opportunity Business Proposal

1. Lack of internet access in Establish an Internet Cafe
most barangays/towns

2. Growing demand for Establish a repair and

motorcycles vulcanizing shop
specializing in motorcycles

3. Be as creative as you can be! Don’t be afraid to tackle difficult opportunities

or to come up with expensive ideas. Assume you have Php 1,000,000.00 to
invest.
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Opportunity

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 POST ASSESSMENT
Answer the following questions as best as you can. Write down your answer and
share it with the rest of the class.

1. Social media has been very active in terms of spreading the word about practically
anything and everything. As a budding entrepreneur, how can you take advantage of
this trend to churn out potential opportunities? List down potential business
opportunities that you see.

2. A contractor of a fast food giant failed to deliver the expected output of an inventory
systems upgrade. This resulted in more than 70 branches closing due to inventory
problems. It compromised the sales for the month. What do you think were the
potential opportunities opened up to other players in the fast food industry?

17 the MERS-CoV (Middle East Respiratory

3. In order to prevent the Ebola virus and
Syndrome Coronavirus) from entering the Philippines, airports and other entry points
all over the country have been provided with digital thermo scanner to detect feverish
persons coming in from countries affected by the two viruses. However, there is no
 guarantee that the country would be virus-free for a long time despite the state-of-

This is all for Module 1. I am hoping that you enjoy this module. See you in Module 2.

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