Entrepreneurship

Grade 11
Quarter 4 WEEK

Recruitment
13
Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a foun-
dation for understanding of environment and market in one’s locality or town.
This lesson introduces you to independently creates a business vicinity map reflective
of potential market in one’s locality/town.
At the end of the lesson, you are expected to recruit qualified people for one’s
business enterprise.
Recruitment is a process of convincing or encouraging a prospective applicant to
fill in a vacant position.
Steps in Recruitment
1. Study the different company jobs and write its descriptions and specifications.
Job Description - It defines the duties and responsibilities of a particular po- sition.
It is an essential part of hiring and managing your employees. These written summaries
ensure your applicants and employees understand their roles and what they need to do
to be held accountable. Job description also:
⇒ Help attract the right job candidates;
⇒ Describe the major areas of an employee’s job or position:
⇒ Serve as a major basis for outlining performance expectations, job training, job evalua-
tion and career advancement; and
⇒ Provide a reference point for compensation decisions and unfair hiring practices.
A job description should be practical, clear and accurate to effectively define your
needs. Good job descriptions typically begin with a careful analysis of the important
facts about a job such as:
⇒ Individual task involved;
⇒ The methods used to complete the tasks;
⇒ The purpose and responsibilities of the job;
⇒ The relationship of the job to other jobs; and
⇒ Qualifications needed for the job.
Job description include:
Job title;
Job objective or overall purpose statement;
Summary of the general nature and level of the job;
Description of the broad function and scope of the position;
List of duties or tasks performed critical to success;
Key functional and relational responsibilities in order of significance; and
Description of the relationships and roles within the company, including supervisory
positions subordinating roles and other working relationships.
Additional Items for Job Descriptions for Recruiting Situations:
Job specifications, standards, and requirements;
Job location where the work will be performed;
Equipment to be used in the performance of the job; and
Salary range.
Job Specification - It gives the specific qualifications required for the position such as
type of experience needed for the job, special training, skills and physical de- mands,
special abilities, aptitude, age, physical qualifications and other requirement.
Jobs are subject to change for personal growth, organizational development, and/or
evolution of new technologies. A flexible job description encourages employees to

1
grow within their position and contribute over time to the overall business.

2
 2. Requisition of New Employee - A formal requisition form is required indicating the po-
sition to be filled, date needed, qualifications and other requirements needed for an
applicant.
3. Actual recruitment of applicant/s.
Sources of applicants:
a. Internal - employees recruited within the company.
b. External - applicants recruited through advertisement, referrals, placement
agencies, etc.
Selection
It is the process through which organizations identify and make decisions
about the applicants/s who will be allowed to join the company. Organizations should
create a selection process in support of its job descriptions and should be able to identify
applicant/s that have the necessary knowledge, abilities, skills, and other characteristics
required in the job.
Steps in Selection
1. Reception of Applicants - It involves screening of applicants by which applicants are
interviewed.
2. Preliminary Interview - The purpose of preliminary interview is to check if the appli-
cant is qualified for the position and eliminate those applicants who are disqualified.
3. Filling out of Application Form - This serves as a guide in interviewing the applicant to
determine if the applicant matches the job requirements as indicated in the job de-
scription and job specification. This serves also as a basis in checking applicant’s school
records, former employers and references.
4. Employment Test - Employment test is given to measure applicant’s abilities needed
for the job.
5. Final Interview by Immediate Supervisor or Department Head - To determine who
among the applicants should be hired and fitted for the job.
6. Physical and Medical Examination
Medical Examination - A medical examination helps to determine if t he applicant is
fit to work or to find out health concerns that might hinder his ability to perform the
required job. Pre-Employment Test -
A pre-employment background check is essential in hiring an employee to obtain im-
portant information of the applicant in terms of work performance and his ability to do a
specific job and other essential information required for the job before deciding to hire
an applicant.
7. Hiring - The applicant who passed the selection requirements is sent to the Human Re-
source Department for final completion of the hiring process.
8. Orientation - The new employee/s are oriented on company policies, rules and regula-
tions and informed or directed about his job by the immediate supervisor or training
officer.
Training/Retraining
New employees are required to undergo training to help him perform his job effi-
ciently. For the growth of employees and the company, training is carried out continuously in
many organizations according to the needs of the employees and/or company. Retrain- ing
is required to those who need enhancement, new knowledge on the present job, need
promotion and transfer to other department.
Compensation
This part contains the compensation of the personnel based on their qualifications.
After determining the needed number of manpower and their qualifications, the next step
is to express it in monetary form. The usual standard in determining wage rates is match-
ing them with the industry standards. The pay scale shall be set based on the minimum
wage in the region or place of the business and the result of the salary survey that match
the industry standards.
Since the law mandates the provision of benefits to workers, such as allowances,
bonuses, Social Security System (SSS), Pag-ibig, Philhealth contributions and the like; these
should be included in the study. Also companies provide benefits such as leave ben- efits,
allowances, bonuses, insurance and retirement benefits. The summary of the com-
pensation package should be shown in the exhibit.
Establishing the Pay Structure
This means establishing pay rates or ranges compatible with ranks, classifications, or
points arrived at through job evaluation. Another way to establish the pay structure is to
conduct compensation surveys to gather factual information on pay practices within
industry or particular place.

3
 Organizational Policies
This section explains the personnel policies that should be implemented in the
workplace. There should be underlying policy in the recruitment, selection, hiring, train-
ing and development of personnel, including the compensation and benefits.
As part of organizing the business, a company manual and code of discipline that
contains information about the company policies, employees’ priviledges and benefits
should be prepared.
Company Manual
An employee manual is an important communication tool between an employee
and employer. It serves as a guide for employees in the performance of his job and what is
being expected of him as an employee. It includes company policies and procedures and
labor laws that the employee is expected to comply and such other benefits and rights of
an employee.
Company Code of Discipline
The rules and regulations stated are important to achieve total efficiency and har-
monious relationship. Discipline is a key factor in any business undertaking. It promotes
greater efficiency in business operations, creates a general condition of orderliness condu-
cive to greater manpower productivity, reinforces the moral dignity of all employees, and
most of all enhances company prestige.
Learning Task 1: Observe and discuss the recruitment process of the following:
1. SM Taytay
2. Jollibee Foods Corporation

3. McDonald’s Philippines

4. Motortrade

5. Mercury Drug

Learning Task 2:
A. Identification
1. It defines the duties and responsibilities of a particular position.
2. It is a process of convincing or encouraging a prospective applicant to
fill in a vacant position.
3. It is the process through which organizations identify and make deci-
sions about the applicants/s who will be allowed to join the company.
4. It gives the specific qualifications required for the position such as type
of experience needed for the job, special training, skills and physical de-
mands, special abilities, aptitude, age, physical qualifications and other
requirement.

B. Enumeration:
Steps in Recruitment
5.
6.
7.
Steps in Selection
8. 12.
9. 13.
10. 14.
11. 15.

Learning Task 3: Ask a family member or relative who is employed in a company and
ask about the following information:
Name of the Company:
1. Compensation
2. Pay structure
3. Organizational Policies
4. Company Manual
5. Company Code of Ethics
 Business Model
Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a founda-
tion for understanding of environment and market in one’s locality or town.
This lesson introduces you to independently creates a business vicinity map reflective of
potential market in one’s locality/town.
At the end of the lesson, you are expected to develop the business model
Business Model
It describes how the business will generate revenue and support financial projec-
tion/s. It will greatly help in describing the importance of the business in gaining profit and
sales. It is a description of means and methods a firm employs to earn the revenue
projected in its plans. It views the business as a system and answer the question, “How are
we going to make money to survive and grow?” (businessdictionary.com)

The two primary levels of a company’s business model are pricing and costs. A
company can raise prices and it can find inventory and reduced costs. Both actions in-
crease gross profit. Gross profit is often considered the first line of profitability because it only
considers costs, not expenses. It focuses strictly on the way in which a company does
business, not the efficiency of management. Investors that focus on business models are
leaving room for an ineffective management team. (Investopedia)

A business model is an “abstract representation of an organization, be it concep-

tual, textual, and/or graphical, of all core interrelated architectural, co-operational, and
financial arrangements designed and develop by an organization presently and in the fu-
ture, as well as all core products and/or services the organization offers, or will offer, based
on these arrangements that are needed to achieve its strategic goals and objectives. This
definition by Al-Debei, El-Haddadeh and Avison (2008) indicates that value proposi- tion,
value architecture (the organizational infrastructure ad technological architecture that
allows the movement of products, services and information), value finance (modeling
information related to total cost of ownership, pricing methods, and revenue structure),
and value network articulate the primary constructs or dimensions of business models.

Business models are used to describe and classify businesses, especially in an entrepre-
neurial setting, but they are also used by managers inside companies to explore possibili-
ties for future development. Well-known business models can operate as “recipes’ for crea-
tive managers. Business models are also referred to in some instances within the context of
accounting for purposes of public reporting. This is the conceptual structure support- ing the
viability of a business, including its purpose, its goals and its ongoing plans for
achieving them. It describes the rationale of how an organization creates, delivers, and cap-
tures value, in economic, social, cultural or other contexts. The process of business model
construction is part of business strategy.
In theory and practice, the term business model is used for a broad range of infor- mal
and formal descriptions to represent core aspects of a business, including purpose, business
process, target customers, offerings, strategies, infrastructure, organizational structures,
sourcing, trading practices, and operational processes and policies including culture. The
literature has provided very diverse interpretations and definitions of a busi- ness model. A
systematic review and analysis of manager responses to survey defines business models as the
design of organizational structures to enact a commercial oppor- tunity. Further extensions to
this design logic emphasize the use of narrative or coherence in business model descriptions
as mechanisms by which entrepreneurs create extraordi- nary successful growth firms.
Characteristics of a Strong Business Model
Adapted from http:www.businessdictionary.com/definition-model.html
1. Identify the specific audience.
Targeting a wide audience won’t allow your business to hone in on customers who
truly need and want your product or service. Instead, when creating your business
model, narrow your audience down to two or three detailed buyer personas. Outline
each persona’s demographics, common challenges and the solutions your company will
offer. As an example, Home Depot might appeal to everyone or carry a product the
aver- age person needs, but the company’s primary target market is homeowners and
build- ers.
 2. Establish business processes.
Be-fore the business can go live, one should have an understanding of the activities re- quired to
make the business model work. Determine key business activities by first identifying the core aspect
of the business’s offering. Are you responsible for providing a service, shipping a product or offering
consulting? In the case of Ticketbis, an online ticket exchange marketplace, key business processes
include marketing and product delivery management.
3. Record key business resources.
What does the company need to carry out daily processes, find new customers and
reach business goals? Document essential business resources to ensure the business
goals? Document essential business resources to ensure the business model is ade-
quately prepared to sustain the needs of the business. Common resource examples may
include a website, capital, warehouses, intellectual property and customer lists.
4. Develop a strong value proposition. How
will the company stand out among the competition? Do you provide an innovative ser-
vice, revolutionary product or a new twisty on an old favorite? Establishing exactly what
the business offers and why it’s better than competitor’s is the beginning of a strong value
proposition. Once you’ve got a few value propositions defined, link each one to a service
or product delivery system to determine how you will remain valuable to cus- tomers over
time.
5. Determine key business partners.
No business can function properly (let alone reach established goals} without key
partners that contribute to the business’s ability to serve customers. When creating a
business model, select key partners, like suppliers, strategic alliances or advertis- ing
partners. Using the previous example of Home Depot, key business partners may
lumber suppliers, parts wholesalers and logistics companies.
6. Create a demand generation strategy.
Unless you’re taking a radical approach to launching your company, you’ll need
a strategy that builds interest in your business generates leads and is designed to
close sales. How will customers find you? More importantly, what should they do once
they become aware of your brand? Developing a demand generation strategy
creates a blue print of the customer’s journey while documenting the key motivators
for taking action.
7. Leave room for innovation.
When launching a company and developing a business model, your business
plan is based on many assumptions. After all, after you begin to welcome paying
customers, you don’t truly know if your business model will meet their on going needs.
For this reason, it’s important to leave room for future innovations. Don’t make a
critical mistake by thinking your initial plan is a static document. Instead, review it
often and implement changes as needed.
Benefits of Business Model Documentation
1. It describes how an organization fulfils its purpose.
2. It answers the following questions: Who is your customer, what does the customer
value, and how do you deliver value at an appropriate cost?
3. Maintaining a focus on corporate goals, reviewing operational practices and ensuring
that the two are congruent.
4. It can be incorporated into public relations material and its useful to share with cus-
tomers and partners.
5. The mission statement or vision statement may be included in a business model.
6. Financial goals have been the main focus of such models but business sustainability
and corporate culture have become increasingly integral to business plans in recent
years.
Sample of a Business
Model
Offline Offline
Target Target Market:
Market: Employees within
Employees within area
area of Santa Rosa,
of Santa Rosa, Laguna
Location:
Laguna
Target Mall, Locati
Balibago Complex Market Selling on:
Transaction: Strategies Transacti
Personal
Product
Grilled sea foods
Price
Cost Plus Pricing
Place
Store Location,
Website
 Explain how business model will the company to accomplish their objectives. Each
frame must be inter-related from the other to connect its relevance. Give the usefulness
of the frame used in the model. It must be related to the vision and mission of the pro-
posed business. Entrepreneur can use this as a direction terms of decision making, stra-
tegic planning and long terms projections.

Learning Task 1: Explain the meaning of the following concepts.

1. Business Model

2. Business Resources

3. Specific Audience

4. Demand Generation Strategy

5. Key Business Partners

Learning Task 2: Prepare a business model for the following:

1. Motortrade
2. SM City
3. Chowking
4. San Miguel Corporation
5. Goldilocks
WEEK

Revenues
14
Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a founda-
tion for understanding of environment and market in one’s locality or town.
This lesson introduces you to independently creates a business vicinity map reflective of
potential market in one’s locality/town.

At the end of the lesson, you are expected to forecast the revenues of the business.
How to Forecast Revenue and Growth
Forecasting is calculating and predicting (Some future event or condition) usually) as
a result of study and analysis of available pertinent data. It is a foresight of consequences
and provision against them; prediction or estimate of a future happening or condition. Many
entrepreneurs complain that building forecasts with any degree of accuracy takes a lot of
time - time that could be spent selling rather than planning. But few investors will put money
in the business if unable to provide a set of thoughtful forecasts. More im- portant, proper
financial forecasts will help to develop operational and staffing plans that will help make the
business a success.
Revenue is the total income produced by a given source, a property expected to yield
large annual revenue, the gross income produced by a given source, a property expected
to yield large annual revenue, the gross income returned by an investment. It is the yield of
source income (taxes) that a political unit (as a nation or state) collects and receives into the
treasury for public use.
Growth is a stage in the process of growing; it is a result of growth, a producing es-
pecially by growing. It is anticipated progressive growth especially in capital value and in-
come. Some investors prefer growth to immediate income.
Building Financial Forecasts
Start with expenses, not revenues. It is much easier to forecast expenses than reve-
nues. The most common categories of expenses are as follows:
1. Fixed Costs/Overhead
a. Rent f. Postage
b. Utility bills g. Technology
c. Phone bills/communication costs h. Advertising & Marketing
d. Accounting/bookkeeping i. Salaries
e. Legal/insurance/licensing fees
2. Variable Costs
a. Cost of Goods Sold
b. Materials and supplies
c. Packaging
3. Direct Labor Costs
a. Customer service
b. Direct sales
c. Direct marketing
Rules in Forecasting Expenses
1. Double the estimates for adverting and marketing costs since they always escalate
beyond expectations.
2. Triple the estimates for legal, insurance and licensing fees since they are very hard to pre
dict without experience and almost always exceed expectations.
3. Keep track of direct sales and customer service time as a direct labor expense even when
doing these activities during the start up stage to forecast this expense with more clients.
Forecast Revenues
Conservative revenue might have the following assumptions:
1. Low price point.
2. Two marketing channels.
3. No sales staff.
4. One new product or service introduced each year for the first three years.
Aggressive case might have the following assumptions:
1. Low price point for base product, higher price for premium product.
2. Three to four marketing channels managed by a marketing manager.
3. Two salespeople paid on commission.
4. One new product or service introduced for each segment on the market in years two
and three.
Key Ratios in Forecasting
After making aggressive revenue forecasts, it is easy to forget about expenses. Many entre-
preneurs will optimistically focus on reaching revenue goals and assume that the expenses can
be adjusted to accommodate reality if revenue does not materialize. The best way to reconcile
revenue and expense projections is by a series of reality checks for key ratios.
Revenue forecasts are useful both for start-ups and existing businesses. Here is how to pre-
pare:
1. Decide on a Timelime
Decide on how far you want to look into the future. This will be determined by creating the
report.
2. Forecast Your Expenses
Predicting expenses is perhaps the easiest part of reveue forecast with past expense
records of an existing business and researched forecast.
Two Types of Expenses
1. Fixed Costs - These are the expenses that remain the same every month. They in- clude things
such a rent, fixed salaries, utilities, insurance, phone, internet and tech- nology costs, postage,
advertising and marketing expenses, legal, accounting, and bookkeeping fees.
2. Variable Costs - Those are the expenses that change every month, depending on your sales
volume. They include the cost of the goods sold (including materials and supplies), packag-
ing costs, sales, cost of labor, marketing, and customer service costs as they relates to the sale
of product.
Learning Task 1: Choose a leading restaurant or any business establishment in your town,
forecast the following: (As of December 2020)
1. Revenue
2. Growth
3. Expenses
4. Sales Volume
5. Projected Sales
Learning Task 2: Based on your answer in Learning Task 1, Answer the following questions:
1. What is the effect of the Covid-19 Pandemic on the forecasted revenue?
2. What precautionary measures the company do as response to the situation?
3. What kind of products or service are not affected by the pandemic instead their revenue
increased?
RUBRIC:
Organization of ideas - 5 pts.
Grammar - 5 pts.
Total 10 pts. each
 Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a founda-
tion for understanding of environment and market in one’s locality or town.
This lesson introduces you to independently creates a business vicinity map reflective of
potential market in one’s locality/town.
At the end of the lesson, you are expected to forecast the costs to be incurred.
Project Cost Forecast
Cost forecasts are normally performed as part of periodic processing. If the company
wanted to run the cost the forecast at a particular time and/or in background processing, one
can plan it as a job in the Schedule Manager. Use the Schedule Manager monitor to check
the scheduled job both during and after processing.
Process Flow
Before accessing the cost forecast, the following are needed:
1. Reschedule
2. No activity scheduling takes place in the cost forecast. It must be rescheduled first,
so that the calculation of the cost to complete takes account of the changed
dates.
3. Calculate overhead on actual and commitment values.
The Cost Simulation Versions
Based on planned, actual and commitment costs, the system determines what is still to
be done in network activities and costs this again. The system records the value so deter- mined
as cost to complete, by period, in a period, in a forecast version for:
Internally processed activities
Externally processed activities
General costs activities
Material component not managed as part of project stock (whether valued or not)
Result The following forecast version values are available for evaluation in the Project Infor-
mation System:
1. Cost to complete.
2. Actual values at the time of the cost forecast.
3. Commitment values at the time of the cost forecast.
Cost Control Strategies
Supermarkets like Waltermart, Robinson’s and Gaisano with small returns on sales, asks
suppliers to provide them manpower like merchandisers and promo girls. Suppliers also pay for
displays and replace bad orders (B.O.)
Red Ribbon changed its distribution strategy and instead of expanding solely by opening more
full branches, it expanded by putting out more kiosks catering to the take - out market, which
allows them to operate at much lower operating cost.
Product Improvement
Product improvement involves changing some of the firm’s product and market mixes.
1. Product Migration Strategy
Also known as Moving Up the Ladder strategy, Migration strategy has many names. It i s
called Planned Obsolescence in the consumer durable market or Cannibalization strat- egy in
the non-durable goods like soaps and detergents.
An assessment of margin contribution by product must be made before adding or de-
letting products to improve margins. For instance, many appliance stores like Abenson and
Automatic Center have allocated space for furniture lines because they are more pro- fitable
to carry than appliances.
2. Vertical Integration Strategy
Vertical Integration Strategy can be either be forward or backward. The objective is to gain
economies of scale and to increase control margins. For instance Jollibee has their own bakery
(backward integration) providing breads and other products.
Corporate Retrenchment
The goal of corporate retrenchment is to move “excess fat” and create a leaner organiza-
tion.
1. Overhead Reduction Strategy
A key is to cut overhead that has no strategic implications. These things usually do
not directly affect business, like office supplies and other “nice-to-haves”.
Enchanted Kingdom makes use of their 300 employees to do performances besides their
usual tasks. This not only reduces overhead, but this multi-tasking actually helps boost the
confidence of the employees and allows them the chance to showcase their per forming skills.
Even some of the owners join cast in some performances.
2. Reorganization Strategy
With fixed costs escalating and the number of qualified outlets with category authority
decreasing. Waters Philippines decided to get out of the distribution of their high-tech wa- ter
purification products via retail stores. At much higher price versus competition, Wa- ters
needed a proper demonstration and explanations of their higher quality, 3-in-1 alka- line,
mineral and purified water benefit with their home water system, a goal achieved only after
they shifted into a direct selling organization via an independent sales force. Its sales and
profitability reached an all-time high after the reorganization from distribution selling to retail
selling, from selling cash at the retail stores to selling via installment to the end users, and from
salaried manpower like salesmen and promo girls to independent network market- ers and
leaders.
Learning Task 1:
1. Differentiate Product Migration Strategy from Vertical Integration Strategy.

2. Compare Overhead Reduction Strategy and Reorganization Strategy.

Learning Task 2:
A. Aside from the mentioned company in the discussion search for other companies that
apply the following Cost Control Strategies.

1. Product Migration Strategy

2. Vertical Integration Strategy
3. Overhead Reduction Strategy
4. Reorganization WEEK
B. Ask for a business owner near you about his cost control strategies.
15
Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a founda- tion
for understanding of concepts, underlying principles, and processes of starting and op- erating
a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to implement the business plan.
A business plan is a written description of your business's future, a document that tells
what you plan to do and how you plan to do it. If you jot down a paragraph on the back of an
envelope describing your business strategy, you've written a plan, or at least the germ of one.
Business plans are inherently strategic. You start here, today, with certain resources and
abilities. And you want to get to there, a point in the future (usually three to five years out), at which
time your business will have a different set of resources and abilities as well as greater profitability
and increased assets. Your plan shows how you will get from here to there. (
https://www.entrepreneur.com/article/247574)
Business Implementation
It is a vital stage in business planning. This is the process of executing a plan into prac- tice.
Business Implementation involves establishing structures and activities needed to intro- duce a
business into the marketplace.
Importance of Business Implementation
(Based from the insight of Gustafson)
1. Change - The implementation of a plan brings about change meant to help improve the
company or solve a problem. The changes can occur to policies, management structures,
organizational development, budgets, processes, products or services.
2. Organizational Development - Part of good organizational development involves all em-
ployees in implemented changes. When a company shares its ideas and goals with workers,
the workers will feel a sense of ownership and loyalty to the company, as well as feel includ- ed
in something important that is larger than their respective job descriptions. Making workers feel
valued also helps maintain or improve employee retention. Communicating goals to
employees helps encourage participation and can give a plan a strong start.
 3. Increased Cooperation - When executed properly, business implementation can increase in-
terdepartmental cooperation. It can be easy for a department within a business to work inde-
pendently and only rely on another department within a business to work independently and
rely on another department when a need arises, particularly in a large company. It helps unite
departments, open the lines of communication, creates a diverse culture within the organiza-
tion and increases efficiency and productivity.
4. Clear Priorities - As well as communicating goals, business implementation sets clear priori- ties.
Priorities are generally based on due dates, client needs, financial concerns, worker needs or
logistics. Failure to communicate priorities can cause inefficiencies, miscommunications, worker
frustration and low morale. When priorities or deadlines are realistic, employees feel as if a
company is setting them up for success.
5. Moving Forward - Business implementation is important for moving a company forward. When a
business fails to implement and execute its strategies properly, it fails to move forward and grow.
According to website Business Balls, to implement and execute a plan successfully , there must
be “motivational leadership,” a plan of action and “performance management”.
FORMAT OF A BUSINESS PLAN
I. Executive Summary
II. Background and Business Concept
III. Description of the Business
IV. Vision and Mission for the Business
V. Marketing Plan
a. Product c. Place
b. Price d. Promotion
VI. Sales and Production Plan
VII. Business Requirements
a. Staffing and Cost e. Manufacturing Processes
b. Business Organization f. Plant Location
c. Equipment Requirement g. Material Cost
d. Space Requirement h. Other Cost
-Rent and Utilities - Pre-operating Expense
- Transportation - Repairs and Maintenance
- Office Supplies - Fringe Benefits
- Store Supplies - Miscellaneous Costs
- Sanitary Supplies - Utility Cost
Business Implementation Strat
1. Get Staff and Management Involved
2. Invest in Training
3. Consider outside factors
4. Open communication
10 Ways to Implement Your Great Business
Idea
(https://www.entrepreneur.com/article/25098
4) 6. Learn the technicality
1. Look for pain points, don’t wait for the 7. Networking and Trade shows
“Eureka” moment 8. Pick a good team to initiate growth
2. Share your business idea 9. Create a website suitable to your
3. Find a mentor business
4. Make a business plan 10. Use free resources online to reach out
5. Understand your market needs and adapt to customers
to

Learning Task 1: Answer the following::

1-2 What is a business plan?
3-7. What are the importance of implementing the business plan? 8-
11. What are different strategies of business implementation?
12-20 What are the ways to implement business idea?
Learning Task 2: To start with your business plan, observe around your community and list down
three problems or issues that can be resolved by a product or service. Then think of possible
product or service that will be the solution to each problem as well as its objective. Write your
answer on the table.

Problem Product/Service Objective

1.
2.
3.
 Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a founda- tion
for understanding of concepts, underlying principles, and processes of starting and op- erating
a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to identify the reasons for keeping busi-
ness records.
A business record is a document (hard copy or digital) that records business dealing.
Business records include meeting minutes, memoranda, employment contracts, and accounting
source documents. It must be retrievable t later date so that the business dealings can be ac-
curately reviewed as required.
Importance of Keeping Good Records
1. Monitor the progress of the business
The good records need to monitor the progress of a business. Records can show
whether the business is improving, which items are selling, or what changes the
need to make.
2. Prepare the financial statements
The good record needs to prepare accurate financial statements. These include in
come (profit and loss) statements and balance sheets. These statements can help in dea-
ling with the bank creditors and help manage business.
3. Identify the sources of income
The money or property will received from many sources. The records can identify
the sources of income. This information will help to separate the business from non-
business receipts and taxable from non-taxable income.
4. Keep the track of the deductible expenses
Keep the record especially the expenses will greatly needed when preparing the tax
return.
5. Keep the track of the basis in property
The basis is the amount of the investment in property for tax purposes. The basis will be
used to figure out the gain or loss on the sale, exchange, or other disposition or property,
as well as deductions for depreciation, amortization, depletion, and casualty losses.
6. Prepare the tax returns
7. Support items reported on the tax returns
Types of Records for Accounting and Tax Purposes
Business expenses Petty cash
Credit card statements Vehicle use log
Bank Statements Travel log
Annual tax returns Cash register tapes
Quarterly tax filings Credit card sales receipts
Payroll Invoices
Inventory Cancelled checks
Sales Check stubs
Income
Learning Task 1: Answer the following:
1-2. What is a business record?
3-9. What are the importance of keeping good records?
10-15. What are different types of business records?
Learning Task 2: Compare the business records used by the Private companies ver-
sus Government Agencies
Private Companies Government Agencies
 WE
EK
Lesson
1
This learner’s packet presents the significance of entrepreneurial ideas as a founda- tion
for understanding of concepts, underlying principles, and processes of starting and op- erating 6
a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to perform key bookkeeping tasks.
Bookkeeping is the task of recording all business transactions—amounts, dates, and
sources of all business revenue, gain, expense, and loss transactions. Bookkeeping is the starting
point of the accounting process. Having accurate financial records helps managers and business
owners answer important questions. Is the business making money, or losing it? How much? Is the
business on sound financial ground, or are troubling trends in cash flow pointing to an instability of
some kind? A sound bookkeeping system is the foundation for gathering the information necessary
to answer these questions.
Bookkeeping involves keeping track of a business's financial transactions and mak- ing
entries to specific accounts using the debit and credit system. Each entry represents a differ- ent
business transaction. Every accounting system has a chart of accounts that lists actual ac- counts
as well as account categories. There is usually at least one account for every item on a company's
balance sheet and income statement. In theory, there is no limit to the number of ac- counts that
can be created, although the total number of accounts is usually determined by management's
need for information.

The process of bookkeeping involves four basic steps:

1) analyzing financial transactions and assigning them to specific accounts;
2) writing original journal entries that credit and debit the appropriate accounts;
3) posting entries to ledger accounts; and
4) adjusting entries at the end of each accounting period. Bookkeeping is based on two basic
principles. One is that every debit must have an equal credit. The second, that all accounts must
balance, follows from the first.
Journal
A chronological record of all transactions is kept in a journal used to track all bookkeeping
entries. Journal entries are typically made into a computer from paper documents that contain
information about the transaction to be recorded. Journal entries can be made from invoices,
purchase orders, sales receipts, and similar documents, which are usually kept on file for a spec-
ified length of time. For example, the journal entry for a transaction involving a cash payment for a
new stapler might debit the cash account by the amount paid and credit the office supplies ac-
count for the value of the stapler.
Journal entries assign each transaction to a specific account and record changes in those
accounts using debits and credits. Information contained in the journal entries is then posted to ledger
accounts.
Ledger A ledger is a collection of related accounts and may be called an Accounts Payable Ledger,
Accounts Receivable Ledger, or a General Ledger, for example. Posting is the process by which ac- count
balances in the appropriate ledger are changed. While account balances may be recorded and
computed periodically, the only time account balances are changed in the ledger is when a journal entry
indicates such a change is necessary. Information that appears chronologically in the journal becomes
reclassified and summarized in the ledger on an account-by-account basis.
Format The standard contents of the general journal are as follows:
1. Date. The year and month are not rewritten for every entry unless the year or month changes or a
new page is needed.
2. Account Titles and Explanation. The account to be debited is entered at the extreme left of the
first line while the account to be debited is entered slightly indented on the next line. A brief
description of the transaction is usually made on the line below the credit. Generally, skip a line
after each entry.
3. Posting Reference (P.R.). This will be used when the entries are posted, that is until the
amounts are transferred to the related ledger accounts.
4. Debit. The debit amount for each account is entered in this column.
5. Credit. The credit amount for each account is entered in this column.
Example: Record the following transactions.
Angela Zapanta established her clothing line business in Taytay Tiangge on January 1, 2021.
The following transactions occurred during this month.
Jan. 1 - Zapanta invested 100,000 cash to establish the business.
2 - Bought two sewing machines for cash, 25,000. 3
- Bought textile for cash, 15,000.
4 - Paid two months rent in advance, 10,000
5 - Withdrew cash for personal use, 2,000
The journal entry is shown below:
Date Account Title and Explanation P.R. Debit Credit
2021
Jan. 1 Cash 100,000
Zapanta, Capital 100,000
Initial investment

2 Equipment 25,000
Cash 25,000
Bought two sewing machines

3 Textile 15,000
Cash 15,000
Bought textile.

4 Prepaid Rent 10,000

Cash 10,000
Paid two months rent in
advance

5 Zapanta, Drawings 2,000

Cash 2,000
Withdrew cash for personal
use.

Learning Task 1: Answer the following:

1. A chronological record of all transactions is kept in a journal used to track all
bookkeeping entries. Journal entries are typically made into a computer from
paper documents that contain information about the transaction to be recorded.
2. A collection of related accounts and may be called an Accounts Payable Ledger, Accounts
Receivable Ledger, or a General Ledger, for example. Posting is the process by which
account balances in the appropriate ledger are changed.
3. It is the task of recording all business transactions—amounts, dates, and sources of all
business revenue, gain, expense, and loss transactions
4-7) Bookkeeping Processes
8-10) Complete the heading of the journal
 Date (8) P.R (9) (10)
.

Learning Task : Given the following transactions below. Complete the table.
May 1 - Maria invested 200,000 for her online selling business.
2 - Bought computer worth 40,000.
3 - Bought computer table for cash, 2,000.
4 - Bought merchandise for resale on cash, 50,000.
5 - Paid installation fee for wi-fi connection, 3,500.
 Date Account Title and Explanation P.R Debit Credit
.
2020
May 1 (1) 100,000
Maria, Capital (2)
Initial investment

2 Equipment (3)
(4) 40,000
Bought two sewing machines

3 Computer Table (5)

Cash 15,000
(6)

4 (7) 10,000
(8) 10,000
Paid two months rent in advance

5 Utilities Expense (9)

Cash 2,000
(10)

Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a founda- tion
for understanding of concepts, underlying principles, and processes of starting and op- erating
a simple business.
This lesson introduces you to independently or with his/her classmates starts and op-
erates a business according to the business plan and presents a terminal report of its oper-
ation.
At the end of the lesson, you are expected to identify where there is a profit or loss for
a business
Profit is determined by the money you get from sales, cost of stock (if you sell product/s)
and of course all the expenses you incur. Keeping a close eye on each of these will ensure you
are maximizing the profit in your business.
A net loss is when expenses exceed the income or total revenue produced for a given
peri- od of time. It is sometimes called a net operating loss (NOL). Businesses that have a net loss
don't necessarily go bankrupt because they may opt to use their retained earnings or loans to
stay afloat. This strategy, however, is only short-term, as a company without profits will
not survive in the long-term.
Income Statement is a statement showing the performance of the enterprise for a given
period of time. It summarizes the revenues earned and expenses incurred for that period of time. It
illustrates just how much income your company makes or loses during the year by subtracting cost
of goods and expenses from total revenue to arrive at a net result, which is either a profit or a loss.
An income statement differs from a cash flow statement, because unlike the latter, the in-
come statement doesn't show when revenue is collected or when expenses are paid. It does,
how- ever, show the projected profitability of the business over the time frame covered by the
plan. For a business plan, the income statement should be generated on a monthly basis during
the first year, quarterly for the second and annually for the third.
An income statement lists financial projections in the following format:
Income includes all revenue streams generated by the business.
Cost of goods includes all the costs related to the sale of products in inventory.
Gross profit margin is the difference between revenue and cost of goods.
Operating expenses include all overhead and labor expenses associated with the operations
of the business.
Total expenses are the sum of cost of goods and operating expenses.
Net profit is the difference between gross profit margin and total expenses.
 Information about the performance of an enterprise, in particular its profitability, is
required in order to assess potential changes in the economic resources that is likely to control in the
future. It is also useful in predicting the capacity of the enterprise to generate cash flows from its
existing resource base.
Sample Income Statement for profit and loss.
Profit (Service Business) Loss (Merchandising Business)

Learning Task 1: Identify the following:

1. It is a statement showing the performance of the enterprise for a given period of time
2. It is determined by the money you get from sales, cost of stock (if you sell product/s) and of
course all the expenses you incur
3. These include all overhead and labor expenses associated with the operations of the
business.
4. It is when expenses exceed the income or total revenue produced for a given period of time.
5. It includes all the costs related to the sale of products in inventory.
Learning Task 2: Joana’s Boutique incur the following amounts for the month of November 2020.
Compute for the income statement to determine whether profit or loss given the following infor-
mation:
Sales 500,000
Cost of Goods Sold 24,000
Operating Expenses 12,000

Lesson
This learner’s packet presents the significance of entrepreneurial ideas as a foun-
dation for understanding of concepts, underlying principles, and processes of starting and
operating a simple business.
This lesson introduces you to independently or with his/her classmates starts and
operates a business according to the business plan and presents a terminal report of its
operation.
At the end of the lesson, you are expected to generate an overall report on the
activity.
Activities in Implementing Business
1. Establishing the business objectives
Objective is a list of goals that the company hopes to achieve. The objectives must
be clear and concise. They must at the same time be realistic, demanding but
achiev- able.
2. Defining and assigning the task needed to attain the set objectives
This includes the activities that are to be performed, who are responsible for per-
forming the activities and what the activities are expected to produce. The task must
be simply and clearly stated.
3. Setting out timeframe
Each task and its duration must be formed within a clear timeframe. The result
clearly displays all the activities necessary with their deadlines.
4. Monitoring activities and progress
An important step in the business implementation is monitoring the activity and its
progress. It is necessary to identify any potential weaknesses and determine any
changes. The step is used to analyze the progress and success of the business plan.
Projected Time Table
(Excerpts from the book of Dr. Heidi Maneclang)
The entrepreneur should list the different activities or steps in the preparatory stage of
the project and present them in a Gantt chart to exhibit the duration of each activity. In
every activity the entrepreneur should indicate the length of time needed to do it and the
amount of money to be spent.
 The Gantt chart is an important part of the organization plan. It is a list of all activities to do
prior to the launching of the business and the time frame for accomplishing them. Preparing the
Gantt chart is a useful exercise that allows a person to have a view of the pre-operating activities
and the cost required in each activities. It can be in the form of bar chart, devised by Henry Gantt in
the 1910s, that illustrates a project schedule. Gantt charts can be illustrated in the start and finish
dates of the terminal elements and summary elements of a project. The terminal elements and
summary elements comprise the work breakdown structure of the project. Modern Gantt charts also
show the dependency of relationships between activities of the business operation.
Gantt charts can be used to show that the current schedule status using percent-complete shad-
ings.
The major activities, total pre-operating cost and the necessary documents in stating a busi-
ness should be shown in detail through a Gantt chart in the exhibit.
These activities are the following:
1. Writing of a business plan
2. Negotiation for financing
3. Registration of business
4. Construction of building or renovation of the place
5. Acquisition of equipment and machineries
6. Acquisition of furniture and fixtures
7. Promotional activities
8. Purchase of raw materials or merchandise
9. Hiring of Personnel
10. Training of Personnel
11. Dry Run
12. Start of operation, etc.
Sample Gantt Chart
ACTIVITY Jan. Feb. Mar. Apr May Jun
Writing of a business plan
Negotiation for financing
Registration of business
Construction of building or renovation of the place
Acquisition of equipment and machineries
Acquisition of furniture and fixtures
Promotional activities
Purchase of raw materials or merchandise
Hiring of Personnel
Training of Personnel
Dry Run of Operations
Start of operation
Overall Report on the Activity
Assignment of Activities
State the person (s)/ group (s) responsible for each of your project pre-operating activi- ties.
For individual assignments, you ma use the following presentation format:
No. Activity In-Charge

* State actual name of individual assignee, if possible.

For group assignments:
No. Activity Management Personnel Marketing Etc.

* Put an “X” to mark the group responsible.

Learning Task 1: Prepare a Gantt chart for your business plan and its implementation.

Learning Task 2: Prepare an overall report.