SIARI JOHN H.

ROEMER NATIONAL HIGH SCHOOL

ENTREPRENEURSHIP – 4th QUARTER

Learning Activity Sheets (LAS), Q2-WEEK 4

Name:_____________________________________________________________Grade & Strand:_________________

Score:____

Learning Competencies:
 identify essential factors in forecasting revenues and costs;
 calculate mark-up and selling price of a product or merchandise;
 compute projected revenues;
 compute projected costs; and

LESSON: Forecasting The Revenues of The Business

Revenue is a result when sales exceed the cost to produce goods or render the services. Revenue is recognized
when earned, whether paid in cash or charged to the account of the customer. Other terms related to revenue
include Sales and Service Income. Sales is used especially when the nature of business is merchandising or
retailing, while Service Income is used to record revenues earned by rendering services.
Manpower
Talks about human labor force involved in the manufacture of products. It is measured as the most
serious and main factor of production. The entrepreneur must determine, attain and match the most competent
and skilled employees with the jobs at the most appropriate time period.
Educational qualifications and experience, status of employment, numbers of workers required, skills and
expertise required for the job are some of the manpower criteria that must be highly considered by the
entrepreneur.

Material
Talks about raw materials necessary in the production of a product. Materials mainly form part of the
finished product. Just in case the resources are below standard, the finished product will be of unsatisfactory as
well.
The entrepreneur may consider cost, quality, availability, credibility of suppliers and waste that the raw
material may produce.

Machine
Discusses about manufacturing equipment used in the production of goods or delivery of services.

In the process of selecting the type of equipment to purchase, the entrepreneur may consider types of
products to be produced, production system to be adopted, cost of the equipment, capacity of the equipment,
availability of spare parts in the local market, efficiency of the equipment and the skills required in running the
equipment.

Method
Production method discusses the process or way of transforming raw materials to finished products. The
resources undergo some stages before it is finalized and becomes set for delivery to the target buyers.
The selection of the method of production is dependent on product to produce, mode of production,
manufacturing equipment to use and required skills to do the work.

Product Description
It is the promotion that explains what a product is and why it’s worth buying? The purpose of a product
description is to provide customers with details around the features and benefits of the product so they’re
obliged to buy.
Know who your target market is, focus on the product benefits, tell the full story, use natural language
and tone, use power words that sell, and use good images.
These are guidelines for you to have a good product description; since some customers are very
particular with it since they consider the welfare of their family, if it is safe to use.

Prototyping
A duplication of a product as it will be produced, which may contain such details as color, graphics,
packaging and directions. One of the important early steps in the inventing process is making a prototype.
Benefits are the reasons why customers will decide to buy the products such as affordability, efficiency or ease
of use. The features of the product or service merely provide a descriptive fact about the product or service.
It is better to test your product prototype to meet customers’ needs and expectations; and for your
product to be known and saleable. Pretesting of the product or service is similar to a sample of the product or
service given to the consumer free of cost in order that he/she may try the product before committing to a
purchase.
Supplier
An entity that offers goods and services to another business. This entity is among of supply chain of a
business, which may offer the main part of the value contained within its products. Certain suppliers may even
involve in drop shipping, where they ship goods directly to the customers of the buyer.
Suppliers are your business partners; without them your business will not live. You need them as much
as you need your customers to be satisfied. But as an entrepreneur you have to choose a potential supplier that
has loyalty and value your partnership; a supplier that would lead you to the fulfillment of your business
objectives, mission and vision.

Value chain is a method or activities by which a company adds value to an item, with production, marketing,
and the provision of after-sales service. The main goal and benefit of a value chain, and therefore value chain
analysis, is to make or support a competitive benefit.

A supply chain is a structure of organizations, people, activities, data, and resources involved in moving a
product or service from supplier to customer.
The main objective of supply chain management includes management of a varied range of components
and procedures, for instance, storing of raw materials, handling the inventory, warehousing, and movement of
finished product from the point of processing to the point of consumption.

Business model describes the reasons of how an organization creates, delivers, and captures value in
economic, social, cultural or other contexts. The development of business model construction and variation is
also called business model innovation and forms a part of business plan.
It is a company's plan for how it will make revenues and make a profit. It describes what products or
services the business plans to manufacture and market, and how it plans to do so, as well as what expenses it
will incur.
There are important phases in developing your business model, namely; Identifying the specific
audience; establishing business process; recording a business resources; developing strong value proposition;
determining key business partners; and creating a demand for today’s generation strategy and be open for
innovations.
After developing a business model, we will proceed in developing a business plan. To be able to
successfully complete this module, you need to prepare a business plan and operate your plan and finally keep
records of your business transactions.

Business plan is an important tool for you to have an idea about the future of your business. Your business
plan will be your guide in the moment you will be implementing and operating your business proposal.
You can also make use of the business plan in securing investment capital from financial institutions or
lenders. It can also be used to influence people to work for your enterprise, to secure credit from suppliers, and
to fascinate potential customers.

Read the stories of Jessie, Mercy and Monna below to fully understand the importance of having a business plan:
“Jessie is the eldest of five children of Mr. & Mrs. Natividad. The family is having difficulty to support for
their everyday needs. Because of this, Jessie tried to enter selling banana cue and with his dream to make his
business grow, he put up many stalls in the community without considering the advises of his friends to make a
business plan before implementing his decision. After a few months his stalls shutdown.”
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make up to her
friends. Until such time that her friends introduced her to their friends too for haircut and make up when there
are occasions. Few months after, Mercy was told by her friends to put up a beauty parlor in their place. So she
asks her mother who is also a businesswoman to teach her how to make a business plan and eventually ended
with a successful business.”
“Monna is a diligent student. Because of her knowledge gained from school about business plan she was
able to enhance her skills in business and finally found herself into his laundry shop business.”

Each scenario taught us that business is not just about how much income or profit you can get but it’s
about the life of your business. And in having a business, you also have to consider technological forces, Social
forces, Political forces, Cultural forces, Economic forces and Legal forces.

The following are the components found in a Business Plan.

 Introduction- this part discusses what is the business plan all about.
 Executive Summary- is part of the business plan which is the first to be presented but the last to be
made.
 Management Section- shows how you will manage your business and the people you need to help you
in your operations.
 Marketing Section- shows the design of your product/service; pricing, where you will sell and how you
will introduce your product/service to your market.
 Financial Section- shows the money needed for the business, how much you will take in and how much
you will pay out.
 Production Section- shows the area, equipment and materials needed for the business.
 Competitive Analysis- is the strategy where you identify major competitors and research their
products, sales and marketing strategies.
 Market- The persons who will buy the product or services
  Organizational chart- is the diagram showing graphically the relation of one official to another, or
others of a company.

ACTIVITY 1

Directions: Answer the following questions based on your learnings about 4M’s of production. Write your answer
on the space provided. Five (5) points in each correct answer for Problem No.1

Problem No. 1. “In your home, when you want to eat egg sandwich before going to school, your mother would
surely prepare it for you. Your egg sandwich would not be produced without a process.”
1. Who would be your manpower? _______________________________
2. What would be your materials? ________________________________
3. What machines or tools would you use? _________________________
4. What methods are needed to produce the egg sandwich? (Cooking procedures- enumerate them).
_________________________________________________________________________________________________________________
___________________________________________________________________________________________________________

ACTIVITY 2: Business Plan Making

Below is a template for business plan. You need to fill this out using the business you want to pursue.
This section will show how you will manage your
business and the people you need to help you in your
operations
MANAGEMENT
SECTION a. Manager: ______________________________

b. Workers: ______________________________

This section shows the design of your product/service;

MARKETING pricing, where you will sell and how you will introduce
SECTION your product/service to your market.
a. Product Description:
_______________________________________
b. Price:
______________________________________
c. Selling location: ____________________________

d. Promotional Activity: _________________________

This section shows the money needed for the

business, how much you will take in and how much
you will pay out
FINANCE a. Capital Amount: __________________________
SECTION b. Expected Daily Sales: _______________________
c. Expected Daily Expenses: _______________
d. Income per Day: _____________________

PRODUCTION This section shows the area, equipment and materials

SECTION needs for the business.
a. Draw a lay out of your production area:
b. Enumerate the equipment needed:
c. Enumerate the materials needed:
ASSESSMENT

Direction: Encircle the letter of your choice.

1. Which of the following refers to the human workforce involved in the manufacture of products?
A. Materials B. Method C. Machine D. Manpower
2. The 4M’s of production are as follows except ONE.
A. Management B. Manpower C. Method D. Machine
3. Which of the following refers to the marketing copy that explains what a product is and why it is worth
purchasing?
A. Prototype C. Business Model
B. Product description D. Suppliers
4. It represents the final products from the production process and distributed to the customers.
A. Input B. Supplies C. Output D. Materials
5. It is a replica of a product.
A. Prototype C. Business Model
B. Product description D. Suppliers
6. Which of the following refers to the system of organizations, people, activities, information, and resources
involved in moving a product or service from supplier to customer?
A. Supply chain B. Value chain C. Business model D. Prototype
7. Which of the following is the process or activities by which a company adds value to an article, including
production, marketing, and the provision of aftersales service?
A. Supply chain B. Value chain C. Business model D. Prototype
8. It describes the rationale of how an organization creates, delivers, and captures value in economic, social,
cultural or other contexts.
A. Prototype C. Business Model
B. Product description D. Suppliers
9. It is an entity that supplies goods and services to another organization.
A. Prototype B. Product description C. Business model D. Suppliers
10. Which of the following refers to the manufacturing equipment used in the
production of goods or delivery of services?
A. Machine B. Manpower C. Method D. Materials
11. It refers to the process or technique of converting raw materials to finished products.
A. Machine B. Manpower C. Method D. Materials
12. It simply refers to the raw materials needed in the production of a product.
A. Machine B. Manpower C. Method D. Materials
13. Statement I- Skills and expertise is not important in considering manpower.
Statement II- Benefits are the reasons why customers will decide to buy the products.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
14. Statement I- Educational qualifications and experience is one of the criteria in considering manpower.
Statement II- Product to produce is one of the factors to be considered in method or production method.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
15. Statement I- In selecting the type of equipment to purchase, the entrepreneur may consider cost and
capacity of the equipment.
Statement II- The purpose of a product description is to supply customers through details around the
features and benefits of the product.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
Prepared by :

RUTCHEN P. GUADALQUIVER
Subject Teacher