Module 4: Planning a Business Lesson 1: The Importance of Business Plan by Carlo Justino J. Luna Angeles City National Trade School

1. MODULE 4
PLANNING A
BUSINESS
Mr. Carlo Justino J. Luna
Angeles City National Trade School
Entrepreneurship 9

2. WHAT IS THIS MODULE ABOUT?
This module covers knowledge, skills,
attitudes, and values needed in discussing
the importance of a business plan and
enumerating the steps in preparing a
business plan.

3. WHAT WILL YOU LEARN?
At the end of this module, you should be
able to:
a. discuss the importance of a business
plan;
b. determine the types of business plan;
c. identify and describe the steps in
preparing a business plan

4. WHAT DO YOU ALREADY KNOW?
Pretest: Let us find out how much you
already know about planning a business.
A. Direction: Choose the best answer.
Write only the letter of the correct
answer.

5. 1. Which of the following is the most basic
of all management functions?
a. controlling
b. directing
c. organizing
d. planning

6. 2. What are considered as positive factors
of a business venture?
a. opportunities and weaknesses
b. strengths and opportunities
c. strengths and threats
d. strengths and weaknesses

7. 3. Which is NOT true in a business plan?
a. It does not detect the defect.
b. It eliminates risk.
c. It forecasts future situations.
d. It minimizes costs.

8. 4. What is the most likely the cause of
failure of Filipino entrepreneurs?
a. crab mentality
b. failure to meet deadline
c. weaknesses
d. “bahala na” attitude

9. B. Direction: Choose the letter of the
correct answer from the pool of words
in the box, then write it in your answer
sheet.

10. 1. ______________ serves as your guide in
managing your enterprise.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

11. 2. A business plan is anticipated before
________________ is assumed.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

12. 3. Lack of _________________ is one of the
entrepreneur’s problems to finance
business.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

13. 4. _________________ is the parallel effect of
lack of planning in business.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

14. 5. _________________ is the number of
volume of intended production on a
specific period of time.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

15. 6. __________ is one of the components of
business planning.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

16. 7. A marketing plan is considered the
_____________ of the office because it
gives life to business.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

17. 8. An organizational plan is responsible on
how to execute plans, objectives and
________ of an enterprise.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

18. 9. Planning can minimize _______.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

19. 10. In business, time is _______.
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

20. ANSWERS:
1. Which of the following is the most basic
of all management functions?
a. controlling
b. directing
c. organizing
d. planning

21. 2. What are considered as positive factors
of a business venture?
a. opportunities and weaknesses
b. strengths and opportunities
c. strengths and threats
d. strengths and weaknesses

22. 3. Which is NOT true in a business plan?
a. It does not detect the defect.
b. It eliminates risk.
c. It forecasts future situations.
d. It minimizes costs.

23. 4. What is the most likely the cause of
failure of Filipino entrepreneurs?
a. crab mentality
b. failure to meet deadline
c. weaknesses
d. “bahala na” attitude

24. 1. ______________ serves as your guide in
managing your enterprise.
Business plan
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

25. 2. A business plan is anticipated before
________________ is assumed.actual business
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

26. 3. Lack of _________________ is one of the
entrepreneur’s problems to finance
business.
capital
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

27. 4. _________________ is the parallel effect of
lack of planning in business.
Poor management
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

28. 5. _________________ is the number of
volume of intended production on a
specific period of time.
Production plan
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

29. 6. __________ is one of the components of
business planning.
SWOT
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

30. 7. A marketing plan is considered the
_____________ of the office because it
gives life to business.
bloodstream
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

31. 8. An organizational plan is responsible on
how to execute plans, objectives and
________ of an enterprise.goals
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

32. 9. Planning can minimize _______.risks
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

33. 10. In business, time is _______.gold
a. actual business g. SWOT
b. business plan h. goals
c. capital i. cost of production
d. bloodstream j. risks
e. poor management k. gold
f. production plan

34. BUSINESS
PLAN
DO YOU REALLY NEED?

35. “Would you tell me, please, which way I
ought to go from here?”
“That depends a good deal on where
you want to get to,” said the Cat.
“I don’t much care where–” said Alice.
“Then it doesn’t matter which way you
go,” said the Cat.

36. Clarifying the purpose and direction of your
business is most important than anything else.
KNOW YOUR BUSINESS FIRST!

37. LESSON 1
IMPORTANCE OF
A BUSINESS PLAN
Mr. Carlo Justino J. Luna
Angeles City National Trade School
Module 4: PLANNING A BUSINESS

38. WHAT IS THIS LESSON ABOUT?
This lesson deals with planning for a
business or enterprise.

39. WHAT WILL YOU LEARN?
At the end of the lesson, you should be able to:
a. discuss the importance of business
planning;
b. appreciate certain benefits in business
planning;
c. follow the basic principles of business
planning

43. WORDS TO STUDY
means very small / limited in quantity
M I C R O

44. WORDS TO STUDY
means an effort to do a task
E N D E A V O R

45. WORDS TO STUDY
is the process of setting up goals for a
particular business
B U S I N E S S
P L A N N I N G

46. WORDS TO STUDY
means any plan that works for a business
to look ahead
B U S I N E S S
P L A N

47. WHAT IS A BUSINESS PLAN?
 Business plan is any plan that works
for a business to look ahead.
 It is a “selling document” that conveys
the excitement and promise of your
business to any potential backers and
stakeholders.

48. BUSINESS PLAN BASICS
• For a business to be successful and profitable, the owners and
the managing directors must have a clear understanding of
the firm's customers, strengths and competition.
• Taking time to create an extensive business plan provides a
company with insight into your business.
• This document can serve as a powerful financing proposal.
• While all business plans follow the same structure, each
business will have a unique plan with a different set of
information.

49. PLANNING IS:
WHAT TO DO,
HOW TO DO IT,
WHEN TO DO IT,
AND WHAT TO EXPECT
IN THE FUTURE.

50. TO START A SMALL ENTERPRISE,
YOU MUST HAVE A
FORESIGHT.

51. WHY WRITE A
BUSINESS
PLAN?

52. THE BENEFITS DERIVED FROM
PLANNING A BUSINESS
1. Making a business plan can minimize or
eliminate risks.
It involves a careful study of the competence,
interest and resources of the entrepreneur against
the needs of the consumers. A feasibility study is
necessary because through this, an entrepreneur can
determine whether his/her choice is profitable or not.

53. THE BENEFITS DERIVED FROM
PLANNING A BUSINESS
2. A business plan can also minimize the
cost of production.
This includes how each of the resources of
production such as manpower, money, materials, and
machines are used. Every aspect of the business
operations is monitored and controlled which
prevents unnecessary waste of resources that will
result to economy and efficiency.

54. THE BENEFITS DERIVED FROM
PLANNING A BUSINESS
3. A business plan can also identify the
defects of the business operations.
Goals and objectives are formulated. Procedure,
strategies, and techniques are planned. Reevaluation
may be done to avoid encountering the same
problem.

55. FAST FACTS
• 90% of new businesses fail in the first two years. Failure is
often attributed to a lack of planning.
• A comprehensive, well constructed business plan can
prevent a business from a downward spiral.
• A thorough business plan will have the information to
serve as a financial proposal and should be accepted
by most lenders.
• By taking an objective look at your business you
can identify areas of weakness and strength.

56. BASIC PRINCIPLES OF BUSINESS PLANNING
1. Planning must be realistic.
It must be based on available human,
financial and physical resources. Planning
without enough resources may result to the
failure of an enterprise.

57. BASIC PRINCIPLES OF BUSINESS PLANNING
2. Planning must be based on the needs
of the community.
It should fit the needs of the people in a
community which can be known through
observations, personal interviews and
questionnaires.

58. BASIC PRINCIPLES OF BUSINESS PLANNING
3. Planning must be flexible.
You, as the entrepreneur, should be able to
adjust and to plan if development changes occur
or changes in government laws or policies
happen. Planning should respond to the trends in
consumer’s tastes and preferences.

59. BASIC PRINCIPLES OF BUSINESS PLANNING
4. Planning must start with simple
projects.
This requires simple management and
technology, thus, the micro business is advised.

60. WHY IS
BUSINESS PLAN
IMPORTANT?

61. REMEMBER:
PLANNING is important
to ensure a profitable
and successful business.

62. “If you fail to prepare,
then prepare to fail.”

63. SUMMARY
•Once the business plan is completed, it
should become an operational tool to
measure the success of the business.
• This plan should be updated as
milestones are reached.
•A business should not shelve the plan
once they receive the necessary capital.
It should be a valuable tool for the growth
and development of the business!

64. APPLICATION
You are planning to get into t-shirt printing service business.
Conduct a market survey if the service will become successful.
Directions: Divide yourselves into two big groups. Simulate
conducting a market survey in your group. Then, present a report
on the market survey done by answering the following questions:
1. How did you conduct the market survey?
2. As a result of the survey, do you think your proposed business
will be successful? Why or why not?
3. What principle did you follow in conducting the market survey
as part of your business plan?
4. Why do you consider this activity (market survey) as an
important tool in planning a business?