Entrepreneurship: Quarter 2 - Module 5: Developing A Business Model
Entrepreneurship: Quarter 2 - Module 5: Developing A Business Model
Entrepreneurship: Quarter 2 - Module 5: Developing A Business Model
Quarter 2 – Module 5:
Developing a Business Model
SELF-LEARNING MODULE
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Entrepreneurship
Quarter 2 – Module 5:
Developing a Business Model
SELF-LEARNING MODULE
This module was collaboratively designed, developed and reviewed by educators both from public
and private institutions to assist you, the teacher or facilitator in helping the learners meet the
standards set by the K to 12 Curriculum while overcoming their personal, social, and economic
constraints in schooling.
This learning resource hopes to engage the learners into guided and independent learning
activities at their own pace and time. Furthermore, this also aims to help learners acquire the
needed 21st century skills while taking into consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of the module:
As a facilitator you are expected to orient the learners on how to use this module. You also need to
keep track of the learners' progress while allowing them to manage their own learning.
Furthermore, you are expected to encourage and assist the learners as they do the tasks included
in the module.
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For the learner:
Welcome to the Entrepreneurship – Grade 11/12 Self-Learning Module (SLM) on Developing a Business
Model! (TLE_ICTAN11/12EM-Ia-2)
The hand is one of the most symbolized part of the human body. It is often used to depict skill,
action and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in
this learning resource signifies that you as a learner is capable and empowered to successfully
achieve the relevant competencies and skills at your own pace and time. Your academic success
lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the contents of
the learning resource while being an active learner.
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.
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what you learned from the lesson.
1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use
a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included in the
module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult
your teacher or facilitator. Always bear in mind that you are not alone.
We hope that through this material, you will experience meaningful learning and gain deep
understanding of the relevant competencies. You can do it!
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What I Need to Know
Good day! Welcome to the fifth module of your subject in Entrepreneurship for this
quarter. In the previous module you identified the qualified people and their functions in your
proposed business. Here, you will be learning how to develop your proposed business and
forecast its financial aspect.
At the end of this lesson, you are expected to: Develop the business model
(TLE_ICTAN11/12PC-0h-j-13); Forecast the revenues of the business (TLE_ICTAN11/12PC-
0h-j-14); Forecast the costs to be incurred (TLE_ICTAN11/12PC-0h-j-15); Compute for
profits (TLE_ICTAN11/12PC-0h-j-16).
What I Know
Hello! Let’s begin with challenging our minds in developing a business plan model. Answer this
test to find out what you already know about the lesson you are about to take in this module.
Encircle the letter of your answer.
1. What model is used by the entrepreneurs to generate profit which includes the products or
services that a business plans to sell, identified target market, and anticipated expenses?
a. Business Plan Model b. Business Model c. Feasibility Study d. Marketing
Model
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2. Which of the following components of a business model shows the forecasts revenues, costs to
be incurred, and possible profits to be earned?
a. Product promotion b. Financial projections c. Channel of distribution d. SWOT Analysis
3. Which of the following is prepared when an entrepreneur wants to take captures, in writing, the
essence of where he wants to take his business, and inspire to reach the companies’ goals?
a. Objective Statement b. Mission Statement c. Vision Statement d. Business description
4. What is the difference between the expected income and the total operating costs over the first
year, including any loan payment?
a. sales b. capital c. gross profit d. cost
6. What statement in the business model that includes statement of purpose and explains how
the company plans to achieve the stated goals?
a. Objective Statement b. Mission Statement c. Vision Statement d. Business description
7. What do you call that amount of money that is needed to buy the facilities and equipment, to
register and license the business and get the necessary certificates?
a. Working Capital b. Start-up Capital c. Savings d. Income
8. What do you call that capital which includes the costs of raw materials, packaging, staff
training, product promotion etc. that have to be made before he business begins to generate
income from sales of the product?
a. Working Capital b. Start-up Capital c. Savings d. Income
9. What are calculated before the start of the business to determine whether the entrepreneur’s
savings (known as the owner’s equity) will be sufficient to start the business without loan?
a. Sales and Profit c. Start-up Capital and Initial Working Capital
b. Sales and Expenses d. Start-up Capital and Sales
10. What are these expenses that have to be paid even if no production takes place and those that
depend on the amount of product that is produced?
a. Operating Cost b. Fixed Cost c. Variable Cost d. Cost
11. Which of the following components of a business model shows the organizational structure of
the proposed business and their functions?
a. Product promotion b. Human resource c. channel of distribution d. SWOT Analysis
12. Which of the following components of a business model shows the Strengths, Weaknesses,
Opportunities, and Threats of the components of your proposed business?
a. Product promotion b. Human resource c. channel of distribution d. SWOT Analysis
13. Which of the following components of a business model shows the set of steps it takes for your
product to get in the hands of the key customer or consumer.
a. Product promotion b. Human resource c. Channel of distribution d. SWOT Analysis
14. Which of the following components of a business model shows how you will communicate your
product or service to your customers?
a. Product promotion b. Human resource c. Channel of distribution d. SWOT Analysis
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15. Which of the following components of a business model shows where your proposed business
is located?
a. Product promotion b. Business location c. Channel of distribution d. SWOT Analysis
Lesson
Developing a Business Model
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Hello dear Entrepreneur! This module would assist you on developing your own business
model, forecast the revenues to be gained and the costs to be incurred, and compute the profits
that you will possibly earning in your proposed business.
What’s In
Before going through in this module, let’s recall your understanding on recruiting qualified
people for one’s business.
2. Human resource management is responsible for ensuring that a business complies with
employment and ________laws required by the government.
3. To recruit the best people for your company you need to know what your company _______.
5. When you hire the right people, you can focus on running your ________.
Teacher facilitates an activity that enables learners to use previously taught lesson.
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What’s New
You have learned in the previous lesson about recruiting of qualified people
for one’s business which might give you the excitement and motivation to move
forward in order to come up with a business model.
Now let’s see your excitement and motivation!
Activity 2: “Identify and It will be Fine!”
Instruction: Identify some of the components of a business model and find the
best answer that describes it from the box below.
Answers
Processing Questions:
1. What do you think is the purpose of letting you identify each item in the first
column of the matrix?
________________________________________________________________________________
________________________________________________________________________________
_______________________________________________________________________________
2. Give additional contents that should be included in the matrix. Give your
reason/s why we should include it.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
What is It
Hello! So you have just started to identify some of the essential components
of a business model in your previous activity.
Inherent in any business plan is a description of the Business Model chosen
by the entrepreneur as the one that they feel will best ensure success. Based upon
their analysis from the essential initial research stage, an entrepreneur should
determine how each element of their business model—including their revenue
streams, cost structure, customer segments, value propositions, key activities, key
partners, and so on—might fit together to improve the potential success of their
business venture.
Business Model
The term business model refers to a company's plan for making a profit. It
identifies the products or services the business plans to sell, its identified target
market, and any anticipated expenses.
Importance of Business Model
A business model is concerned with how you design your business to:
meet customers’ needs (offer something that they want to buy);
generate a profitable revenue stream from sales;
build a business that has a sustainable competitive advantage – in other
words, it can’t easily be replicated; and
provide opportunities for growth.
Essentially, using a business model helps you make better decisions about your
business.
For established businesses, it improves how teams make decisions about the
future of the business.
Product/Services Unique taste The main Only our store The product
Resources ingredient is produces the process can easily
are found in produced in product be replicated by
the area season around the other business
area owners.
Price
Management
Product Promotion
Location
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Business, the Costs to be incurred
and Computing Profits
2. Operating Costs
There are two types of operating (production) costs. Those expenses that have
to be paid even if no production takes place are called fixed costs and those
that depend on the amount of food that is produced are the variable cost.
If the gross profit indicates that the proposed business is likely to be successful,
it is then necessary to repeat the calculation of monthly gross profit for one to
five years.
This will then show whether there is sufficient cash available to operate the
business.
What’s More
Now, let’s try to screen what you have read on the discussion by answering the
questions below.
Instruction: Write your answers on the space provided.
1. What is a business model?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
2. What is the importance of a business model?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
3. Give the essential components included in a business model.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
SWOT Analysis
Product/Services
Price
Management
Work Force
Competitors
Total
Table B. Projected Income
Product List Estimated Mark-up price Estimated Selling Estimated
Cost/unit 12.50x.80=10.00 Price Gross sales/day
12.50+10.00 22.50x50pcs
Burger with a
Twist 12.50 10.00 22.50 1,125
Total
Total
Table D. Equipment/Facilities
Equipment/Facilities Indicate Quantity Total Price Total Price
Rental Price (1 day) (3 days)
or borrowed
Gas range 3.00 1 3.00 9.00
Total
Total Capital
Congratulations! You have achieved. The test is given for you to recognize what you
have learned in this module.
Instruction: Read the questions and encircle the correct letter of your answer.
1. Which of the following components of a business model shows the set of steps it takes for
your product to get in the hands of the key customer or consumer.
a. Product promotion b. Human resource c. Channel of distribution d. SWOT Analysis
2. Which of the following components of a business model shows the Strengths, Weaknesses,
Opportunities, and Threats of the components of your proposed business?
a. Product promotion b. Human resource c. channel of distribution d. SWOT Analysis
3. Which of the following components of a business model shows where your proposed business
is located?
a. Product promotion b. Business location c. Channel of distribution d. SWOT Analysis
4. What are these expenses that have to be paid even if no production takes place and those
that depend on the amount of product that is produced?
a. Operating Cost b. Fixed Cost c. Variable Cost d. Cost
5. Which of the following components of a business model shows the forecasts revenues, costs
to be incurred, and possible profits to be earned?
a. Product promotion b. Financial projections c. Channel of distribution d. SWOT Analysis
4. What do you call that amount of money that is needed to buy the facilities and
equipment, to register and license the business and get the necessary certificates?
a. Working Capital b. Start-up Capital c. Savings d. Income
5. What do you call that capital which includes the costs of raw materials, packaging,
staff training, product promotion etc. that have to be made before he business begins
to generate income from sales of the product.
a. Working Capital b. Start-up Capital c. Savings d. Income
9. What are calculated before the start of the business to determine whether the entrepreneur’s
savings (known as the owner’s equity) will be sufficient to start the business without loan?
b. Sales and Profit c. Start-up Capital and Initial Working Capital
c. Sales and Expenses d. Start-up Capital and Sales
10.What are these expenses that have to be paid even if no production takes place and those
that depend on the amount of product that is produced?
a. Operating Cost b. Fixed Cost c. Variable Cost d. Cost
11.Which of the following is prepared when an entrepreneur wants to take captures, in writing,
the essence of where he wants to take his business, and inspire to reach the companies’
goals?
a. Objective Statement b. Mission Statement c. Vision Statement d. Business description
13. Which of the following components of a business model shows how you will communicate
your product or service to your customers?
a. Product promotion b. Human resource c. Channel of distribution d. SWOT Analysis
14. Which of the following components of a business model shows the organizational structure
of the proposed business and their functions?
a. Product promotion b. Human resource c. channel of distribution d. SWOT Analysis
15. What is the difference between the expected income and the total operating costs over the
first year, including any loan payment?
a. sales b. capital c. gross profit d. cost
Additional Activities
Congratulations! You made it until the end of our lesson. Now, it’s time for you to
forecast the given data.
Projected Income
Product List Estimated Mark-up price Estimated Selling Estimated
Cost/unit (50%) Price Gross sales/day
Other Expenses
Items Price per Quantity Total Price Total Price
item (1 day) (3 days)
Office Supplies 10.00 2 20.00
Total
Equipment/Facilities
Equipment/Facilities Indicate Quantity Total Price Total Price
Rental Price (1 day) (3 days)
or borrowed
Sealer machine 2.00 1 2.00 9.00
Angeles, De Guzman, A., DBA, CPA (2018). Entrepreneurship For Senior High
School, Aplied Subject, ABM Strand. LORIMAR Publishing, INC. 2018
www.garyfox.co/what-is-a-business-model/
www.investopedia.com/terms/b/businessmodel.asp#:~:text=Key%20Takeaways,mo
del%20are%20pricing%20and%20costs.
www.business.qld.gov.au/starting-business/planning/business-
planning/vision#:~:text=A%20vision%20is%20a%20vivid,on%20your%20goals%20
and%20aspirations.&text=A%20vision%20statement%20captures%2C%20in,staff%
20to%20reach%20your%20goals.
www.articles.bplans.com/writing-a-mission-
statement/#:~:text=A%20mission%20statement%20is%20a,company%20does%20
what%20it%20does.
www. smallbusiness.chron.com/should-objective-statement-company-describe-
10048.html
ttps://www.thebalancecareers.com/what-is-a-human-resource-1918144
www.tallyfy.com/swot-analysis/
DISCLAIMER
This Self-learning Module (SLM) was developed by DepEd – Division of
General Santos City with the primary objective of preparing for and
addressing the new normal. Contents of this module were based on DepEd’s
Most Essential Learning Competencies (MELC). This is a supplementary
material to be used by all learners in General Santos City in all public
schools beginning SY 2020-2021. The process of LR development was
observed in the production of this module. This is version 1.0. We highly
encourage feedback, comments, and recommendations.