ENTREPRENEURSHIP REVIEWER FOR FINALS

LESSON 1
What is Entrepreneurship?
Entrepreneurship is “the capacity and willingness to develop, organize and manage a business venture along with
any of its risks in order to make profit. The most obvious example of entrepreneurship is the starting of a new business”
(Business Dictionary, 2020). With this definition, we can safely conclude that entrepreneurship is an economic activity of
a person who develops, operates, and takes the risks of a business enterprise and the person behind these entrepreneurial
activities is called an entrepreneur.

According to Robert Medina (2010), there are four elements that are necessary in achieving the country’s economic
development goals. These are the (1) human resources that includes labor supply, education, discipline, and motivation;
(2) natural resources that includes land, minerals, fuel, and climate; (3) capital formation that includes machines,
factories, and roads; and (4) technology that includes science, engineering, management, and entrepreneurship. As he
emphasizes, the proper management of these elements is very essential for the growth of the nation’s economic status and
as given the opportunity and responsibility to take good care of these elements, in the hands of our entrepreneurs, there
lies the effective and efficient utilization of these resources. An example of that is the need for entrepreneurs to play the
role of harnessing the potentials of any or all of these elements, the allocation of the quantity of these elements, and to
when and where it is needed. Also, these activities depend much on the provisions given by the government to support or
limit these activities.
As an important player of the economy, the benefits of entrepreneurship is summarized below:

Providing products and services for customers and producers is performed after a thorough observation and
examination of the people’s demands.

Employment is a result of the many businesses as these institutions need the workforce and a number of
manpower to carry out the daily business operations.

Taxes are paid to the government through licenses, fees, and application of permits of the enterprise, and income
taxes applications of employees and entrepreneurs.

Demand for supplier’s products and services is also one of the concerns of the entrepreneurs. This is when
entrepreneurs make sure that the supplier’s products and services will be allocated to a specific market.

Training facilities for future entrepreneurs refers to the opportunity provided by every business to provide a
training ground for future entrepreneurs.

LESSON 2

What is an entrepreneur?
An entrepreneur works to study the economy and identify its needs, come up with possible solutions with the use
of resources required, and take the risks of business – either it succeeds or fails . They are the key runners in a capitalist
economy like the Philippines where the means of production is controlled by private businesses and not by the
government.

The Entrepreneur’s Characteristics

The abovementioned definition of an entrepreneur will not be possible if he or she does not have distinct characteristics in
handling a business. In fact, “entrepreneurs are a rare species” as the writer Alexander S. Kritikos says in his blog article
about the entrepreneur’s impact on jobs and economic growth. This statement coincides with the list characteristics of
successful entrepreneurs based on research. These traits are as follows:
1. Drive is the urge that occurs when a need is not met. It is a trait of an entrepreneur who is self-motivated enough to
continue trying even failed for how many attempts. This entrepreneur never stops until he succeeds.

2. Thinking Ability is an entrepreneur’s trait that allows him to see through the information brought before him. This
involves solving problems and making decisions.

3. Human Relations Ability is the trait of an entrepreneur that enables him to communicate and build harmonious
relationships with the customers, employees, and the third party individuals/organizations that have interest in the
company.

4. Communication Ability is said to be a very important skill of an entrepreneur. This involves the ability to understand
and be understood easily in his transactions.

5. Technical Knowledge on the type of business you venture, is very important. As it requires minor and major business
operations, the entrepreneur must at least be familiar and possess some technical knowledge about how these tasks are
performed in order for him to easily devise a management strategy.

6. Reasonable Risk Taker means the ability of an entrepreneur to calculate the risks and benefits before starting the
business. “Ventures with zero risks yield zero benefits” is always their mindset.

7. Self-confidence is the person’s belief in his ability that leads him to actual performance and success. When an
entrepreneur is self-confident, he does his job without shyness.

8. Goal-setter is an entrepreneurial trait that makes him potentially successful. This is because the goals are very useful
motivation in establishing the company objectives and a person who knows how to set SMART goals could possibly
actualize these into action.

9. Accountability is the trait of the entrepreneur to take responsibility for whatever happens to the firm.

10. Innovativeness is the ability of the entrepreneur to become creative that allows the business to (1) penetrate the
market; (2) improve employee turnover; (3) reduce manufacturing cost; and (4) improve collection rate.

Entrepreneur’s Field of Expertise

The world of entrepreneurship these days has already evolved, and new terms are coined to suit an entrepreneur’s
field of expertise. The different expertise of entrepreneurs helped them identify their chosen business to venture. Here are
some of them:

1. A technopreneur is an entrepreneur who puts technology at the core of his or her business model.

Example: Mobile phone stalls (OPPO, Samsung, etc.)

2. A social entrepreneur is one who takes advantage of the country’s social problems and turns them to profitable
institutions with intentions of helping the disadvantaged community rather than making a profit.

Example: Agencies, charities

3. An intrapreneur also known as “internal entrepreneur”, is an employed entrepreneur in a large company or corporation
who is tasked to think, establish, and run a new big idea or project. They are usually product managers or business
development managers of a company.

Example: Product manager and product innovators

4. An extrapreneur is an entrepreneur who hops from one company to another to act as the innovation champion,
providing creative and efficient solutions.
Example: A company consultant

LESSON 3

What is a market analysis?

According to the businessdictionary.com, market opportunity analysis is a forecasting activity that examines the
different market factors that might directly or indirectly affect the demands of the market. It involves complex processes
of customer information within the industry.

There are three important effects of conducting market analysis as cited by Infinity Research (2018), a marketing
consultancy company, in its article published in businesswire.com. It says that market analysis is important because it
allows the business to (1) understand their customers through the data collected from them; (2) analyze their competitors
and new products and strategies; and (3) conduct product testing before jumping into launching. With these, we can say
that market analysis is an important entrepreneurial practice especially that businessmen are dealing with the changing
demands of the market.

LESSON 4 BUSINESS PLANNING 101: MARKETING MIX

The marketing mix is a widely accepted strategic marketing tool that combines the original 4Ps (product, place,
price, promotion) with the additional 3Ps (people, packaging, process).
1. Product – any physical good, service or idea that is created by an entrepreneur or an innovator in serving the needs of
the customers. The following are the examples

Goods Service Idea

● Toothpaste ● Hotel services ● Education

● Shampoo ● Body massage and spa ● Innovations

● Laptop ● Bookkeeping service

● Milktea ● Vulcanizing services

2. Place – refers to the location, the medium of transaction of the manner product distribution. This may be done through
the use of middle men and agents in the distribution. The following are the channels of distribution:
Direct Channel or Zero –level Channel (Manufacturer to Customer) – One of the oldest ways of distributing the
product is the direct way of delivering it from the manufacturer to the customer.
Indirect Channels (Selling through Intermediaries) – involves middleman/intermediary in delivering the product.

● One-level Channel – the distribution of product is from the manufacturer to retailer to the end customer.

● Two-level Channel – the distribution of the product from the manufacturer to wholesaler to retailer and to the end
customers.
● Three-Level Channel – the distribution of the product from the manufacturer to the agent to the wholesaler to the
retailer to the end customer.
3. Price – the value that the entrepreneur assigns to a certain product or service after considering its costs. This is also
called the income generating element of the Marketing Mix. There are two types of pricing strategy for new products: (1)
Price Skimming Strategy and (2) Price Penetration Strategy.
 ● Price Skimming – a strategy that sets a high price as the new products are introduced to the market. Because of the
product’s distinct feature that leads to market innovation, companies set higher introductory prices to set the said
market standard.
● Price Penetration – the strategy that sets lower introductory prices in order to ‘penetrate’ or capture the market.
The goal of this strategy is to make more sales and capture a higher market share.

4. Promotion – the presentation of products or services to the public and how these address the public’s needs, wants,
problems, or desires. This can be in the form of an advertisement, public relations, direct marketing, personal selling,
direct marketing, and sales promotion.

Promotion Element Examples

Advertising TV Advertisement, Radio Ads, Print Ads.
Public Relations Events and sponsorship
Direct Marketing E-mail and text blast
Personal Selling House-to-house selling
Sales Promotion Couponing, Free tasting
5. People - Most entrepreneurs only hire people when the business starts to expand. These are the workforce who are
going to reinforce the marketing activity of the company. They are commonly trained to do specific marketing tasks such
as Sales Representatives and Market Analysts. The human resource is considered as the soul of the business.
6. Packaging – This is how the product or service is being presented to customers. It is the overall identification (look and
feel) of the product or service. For the service providing companies, instead of packaging, the other P means physical
evidence. This includes the building, lighting, music, equipment and furniture that are used in carrying out the service.
7. Process – It is the step-by-step procedure or activity workflow that the entrepreneur and employees follow to
effectively and efficiently serve customers. This includes the standard operating procedure (SOP) of the company,
Calendar of Activities, and other regulations.
The 7Ps of the marketing mix contribute a lot in the creation of the company’s marketing goals and objectives.
The changes in innovations of these elements based on the customer’s perspectives are the foundation of the marketing
strategies. If these elements were formulated in an accurate and excellent manner, it will probably result in well-designed
marketing strategies that will soon give customer satisfaction. On the other hand, if these elements were not properly
planned, the results can also create strategy failures, negative feedback, and might cause waste of money. This is how the
marketing mix affects the creation and implementation of the marketing strategy.
LESSON 5 BUSINESS PLANNING 101: 4Ms of BUSINESS OPERATION

Operations Management is multidisciplinary in nature along with activities involving planning, organizing, and
supervising processes for higher quality development. It was previously called production management that started with
the production activities of the ancient craftsmen and was developed in the eighteenth century during the industrial
revolution.

The 4Ms of Operations

1. Materials – these are supplies and raw materials used for production. Supplies include utensils, cups and other
materials alike. On the other hand, the raw materials are the ingredients and other components in the production of the
finished product.

2. Machine – this includes the equipment, device, and engine used to convert the raw materials into finished product in a
time-bounded manner. These are operated and managed by the company’s manpower, following with specific procedures.
Machines commonly have 5-8-year product life span depending on the usage of such equipment.
3. Man – these are the human resources. It is important to have honest and capable workers in the business that is why,
among the 4Ms, hiring these assets are the most crucial part in preparing the business because hiring wrong people for the
position will probably result to substandard products and service. However, some companies also offer training programs
and seminars to their employees in order to help them enhance their skills for the business operation.

4. Method – these are procedures and business processes performed by the Man and is sometimes programed on the
Machine. This also includes the business’ specialties on how to carry out the business operations.

LESSON 6 BUSINESS PLANNING: BRANDING

In the world of business, one thing that made the product non-identical with each other is because of its brand . The
process of integrating strategies formed from the marketing mix to give an identity to the product or service is called
branding and managing these activities is called brand management.

A brand refers to the word, mark, symbol, or a combination of them to identify of a company, of a product, of a service,
or of an entrepreneur himself or herself. A symbol of promise or assurance from the entrepreneur that what it purports to
the customers will happen.

A brand name is a product identity that can be vocalized or enunciated. A brand mark, on the other hand, is a non-
registered design, symbol or product logo. Therefore, brand becomes the façade of the product that indirectly
communicates to the customers. Through its design, color, and font, the customers will be able to know and understand
the product attributes.

The brand must have these following characteristics: (1) unique; (2) extendable; (3) easy to remember; (4) able to describe
the benefits of the products or services; (5) can be converted to the other dialects or languages in case the entrepreneur
expands to other territories; (6) can describe a product category; (7) can describe concrete qualities; and (8) positive and
inspiring.

Moreover, when the brand was already registered and given legal protection under the Intellectual Property Office (IPO),
the company name becomes the trade name and the registered brands under this trade name becomes the product’s
trademarks.

LESSON 7: BUSINESS PLANNING 101: HUMAN RESOURCE MANAGEMENT

Human resource management is the strategic activity of managing the workforce in the organization. It is made to
maximize employee performance in order to achieve a common goal. These are the five main activities performed by the
HRM department of an organization:

Recruitment – The process of scouting for the right employees for a certain position. This activity may start by spreading
an information about the qualifications of an employee the company needs.

Selecting – This process is performed after gathering a number of applicants who are interested of applying for the
position. HRM department will conduct interviews and tests to an applicant in order to select the most qualified applicant.

Trainings – This comes with the series of activities and workshops where an applicant (off the job) or/and employees (on
the job) are given more information about the nature of job they are applying or they are currently holding. Most of the
trainings are given to the “hired” applicant because this will help them improve as a person and as an employee.
Assessing Performance – Work performance should be assessed in order for the company to know the progress as results
of the trainings provided to the employees. These assessments will also determine if the workers have reach the work
quality standard of the company. Assessment results are also helpful for promotion or termination.

Motivation – This can be in a form of compensation, maintaining labour relations, activities that contribute to healthy,
welfare, and safety of employees, and compliance to labor laws. There are factors that contribute to employee’s
motivation.

According to Habaradas and Tullao Jr. (2017), there are two approaches that an entrepreneur can apply in
managing their manpower. It is through (1) human resource management (HRM) approach and the (2) integral hman
development (IHD) approach. Below are the differences of these approaches as applied in business management:

HRM IHD
The mainstream The alternative paradigm
The organization is formed for consistency. The creativity of everyone is acknowledged.
Human resource are primarily seen as instruments for The approach anchored to human dignity and
achieving organizational goals. common good where there is respect to a person
regardless of age, condition, or ability.
The implementation of this can be seen with the HR The implementation of this approach can be seen with
functions which are recruitment, selection, these activities: bodily development, cognitive
compensation and benefits, training and development, development, emotional development, social
performance evaluation, quality of work life, and development, aesthetic development, moral
employee, and labor relations. development, and spiritual development.

Nowadays, many businesses are combining the HRM and IHD approaches in bringing the bests out of their employees. To
create a more effective manpower management, companies are giving importance of the following activities performed by
Human Resource Managers in Integral Human Development approach:

The IHD Dimensions

Bodily development – the provision and calculation of work processes and equipment in the physical structure of the
workplace in order to protect employee’s health and to respect their overall physical well-being.

Cognitive development – Employees are expected to work smartly to exercise and to develop employees’ talents. This
means that employee’s cognitive abilities are matched to proportionately challenging work.

Emotional development – Employees have the freedom to take initiative without fear of reprisal. They excise
responsibility and accept accountability for their work.

Social development – The organization must encourage social life in the workplace. It develops “social conscience” that
help employees to take initiatives to serve a wider community.

Aesthetic development – Organizations encourage craftsmanship. These are commonly seen with the finished products
of their service in the organization as employees.

Moral development – These can be given much attention through the managerial practices and work rules. Relationships
in the organization must demonstrate respect for human dignity of each idea and opinion.

Spiritual development – Work is understood as a vocation, and valued as a collaboration, in the presence of God, for the
good of one’s fellow human being.

LESSON 8: BUSINESS PLANNING 101: BUSINESS MODEL

 According to Kopp (2020), a business model is a company’s plan for making a profit. It plots the company’s
products and services, target market, and expenses. It was Alexander Osterwalder who proposed the use of a business
model canvas template in his thesis entitled “The Business Model Ontology – A Proposition in a Design Science
Approach” in 2004. Since that time, the business model canvas template became part of the topics taught in business
schools and are widely used for niche businesses.
These are the nine blocks in the business model canvas template:

1. Key Partners – These are the companies or people your business is working with in order to create a strategic
relationship. Common examples are the suppliers and/or distribution partners found in the supply chain.
2. Key Activities – These are the specific activities or tasks that are fundamental to the operation of your business. An
example is the procurement of fresh raw materials in bulk for a restaurant.
3. Key Resources – These are the assets necessary to operate and deliver the value proposition. These can be the
equipment and human resource that you need to carry the business operation.

4. Value Proposition – This is considered as the most important element of the business model canvas template. It
determines the fundamental offering or promise the company is trying to give to the customers. According to
corporateinstitutefinance.com, “it is the primary driver of the business operations.” Example, Spotify’s value
proposition is “Music for everyone.”, that speaks for Spotify’s product and mission to be a music streaming platform
that has music selections for everyone.
5. Customer Relationships – These are the different types of communications a company has with its customers. This
part should state your means of communicating to your customers in terms of announcements, follow-ups, inquiries,
and complaints. Do you have a company phone, Facebook Page, Gmail Account? Do you conduct on-site or online
surveys to know your customer’s feedback?
6. Channels – These are the different structures and methods that are used to deliver your company’s value proposition.
This part is composed of the supply, distribution, and marketing channels. In ordering products, is it a self-serving or
do you have a delivery man to deliver the products? How do customers pay? Is it via G-Cash?
7. Customer Segments - These are the different types of customers that a company manages. A company that produces
different products will need to interact with different types of customers. For example, your product is a bracelet for
women. This part should describe your customers as “women, ages from 15-25, who are mixed with teens and young
professionals…”. When you have products targeting kids as your customers, you must also state it in this portion.
8. Cost Structure – “It refers to how a company spends money on operations. It consists of the company’s key costs and
the company’s level of focus on costs. If a company is cost-driven, it focuses on minimizing costs and, thus, prices for
customers. Alternatively, if a company is value-driven, it focuses on creating value for its customers, with less focus
on cost.” Example, comparing Forever-21 and Gucci brands, based on their business operations, Forever-21 is more
focused on delivering newest styles of clothes at a low-cost while Gucci is focusing more on providing high-quality
clothes that would also reflect to the product price.
9. Revenue Streams – This part states the company’s source of cash flows. The revenue streams must state the different
ways how the value proposition can generate money. This is considered as the final element of the business model
canvas template. Example, Apple products can generate income through its gadgets, Apple Music, and other
applications available to the customers for a price.
To summarize, this is how the business model canvas template looks like:
LESSON 9: THE FINANCIAL STATEMENTS
Financial Statements are reports that summarize important financial operations of the business. However, in order to
create these financial reports, there are assumptions that an entrepreneur must create for him to have a glimpse of the
expenses to acquire and the possible profit to expect. Let us first discuss these assessments:
Assumptions
Acquiring these amounts used in this portion may be from the exact suggested retail price (SRP), estimated price
based on the market value in your locality or the exact price from your supplier.

Projected Six-Day Sales

This shows the projected daily sales of the business. This is being illustrated below:

Name of the Business Entity

Projected Six-Day Sales
For the Period Ended Date

PRODUCT PRICE DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 DAY 6 TOTAL

Product 1 P 10.00 P100.00 P120.00 P144.00 P172.80 P207.36 248.83 P992.99
In the given sample above, it was shown that there were 10pcs of the products sold and there is an approximate of
20% increase of the daily sales. However, this is not constant. As an entrepreneur who have evaluated products demand as
discussed in your LAS 5, you have the freedom to set the approximate increasing or steady rate per day, depending on
your observation on the product’s demand.

How to solve the daily projected Sales?

Day 1 = Price x Projected no. of products to be sold on Day 1

= 10 x 10
 = 100
This means that your projected
Sales on Day 1 is 100 pesos.

Day 2 = Day 1 x 20% projected increase on daily Sales

= 100 x .20

= 120
This means that your projected
Sales on Day 2 is 120 pesos.

As you observe, the daily projected sales with a rate of 20% in the first table does not give us a clear number of
pieces of products to be sold in a day. For example, the 3 rd day projected Sales is P144.00 but since our product is offered
for P10.00 each, there is a need to convert the amount of sales into a number that will help us anticipate the possible
number of pieces to be sold for the day. Thus, instead of presenting the Day 3 Projected Sales as P144.00, it becomes
P140.00 that is equivalent to 14 pieces of pork lumpia. But if the last digit of the Sales amount is more than 5, just like the
Day 5 Projected Sales amounting to P207.00, the converted projected sales now became P210.00 that gives us 21 pieces
of pork lumpia to be sold. The table with converted projected sales amounts becomes your final Projected Six-Days Sales
computation.

Projected Six-Day Expenses

The Projected Monthly Expenses can be comprised of the following:

Store Supplies Expense – This includes the ingredients of the products being sold by the entity and the other supplies
needed to pack or serve the product. Please refer to the Projected Expenses for the Pork Lumpia Table below.

Utilities Expense – This includes the electricity, water, internet connection expenses incurred for the business operations.

Transportation Expense – This includes all the transportation expenses incurred during the operation of the business. Ex:
Transportation for the delivery of the raw materials, delivery of the product to the customers.

A sample of the Projected Expenses for Pork Lumpia is presented below:

Name of the Business Entity

Projected Expenses for Pork Lumpia
For Day 1

PARTICULARS PRICE QUANTITY DAY 1

Store Supplies Expense
Lumpia Wrapper P25.00 50 pcs. P 5.00
Ground Pork P180.00 1 Kilo P10.00
Palm Oil P65.00 1 Kilo P 10.00
Carrots P20.00 4 pcs. P 5.00
Coconut Trunk P30.00 ½ Kilo P 5.00
Salt P5.00 1 Sachet P 1.00
Pepper P10.00 1 Sachet P 1.00
Onion P18.00 1 Pack P 3.00
 Cellophane P25.00 1 Pack P 5.00
Total Store Supplies Expense P 45.00
Utilities
Water P40.00 1 gal. P 7.00
Butane Gas P75.00 1 pc P 6.00
Prepaid Load for
(GIGA STORIES for P50.00 3 days P 17.00
TNT Network)
Total Utilities P30.00
Transportation Expense
2-way P 3.30
Fare P20.00
transportation
Total Transportation Expense P 3.30
TOTAL EXPENSES FOR DAY 1: P 78.30
The sample above only states the Day 1 expenses in producing the product, Pork Lumpia. Basically, the amount
per ingredient is based on the projected 10 pieces to be sold on that day (refer to the Projected Six-Day Sales table). In
order to get the Day 1 Store Supplies Expenses, the sample solution is presented below:

Example: Store Supplies Expense - lumpia wrapper

1. Divide the number of pieces bought by the number of pieces needed in Day 1.
= No. of pieces lumpia wrapper bought in kilo or per pack
No. of lumpia wrappers needed in Day 1
= 50 / 10
=5

2. Divide the amount paid with 5 to get the amount equivalent of the ingredient needed in Day 1.
Day 1 Lumpia Wrapper Expense = Price per kilo or pack / 5
= 25/5
=5
This means that the amount equivalent
for 10pcs. lumpia wrapper is 5 pesos.
However, the given sample solution is only applicable with the ingredients in pieces. Ingredients in kilo or by
volume like ground pork and palm oil depends on the need of the production. You may directly divide the amount per kilo
by the number of days you want you plan to use the said ingredient. Anyway, the purpose of this assumption is to only
foresee the quantity of ingredients needed to provide the first day of your business operation. It’s up to you on how are
you going to prepare your products.

Now, let’s go to the Utilities Expense. In the example given, the particulars composing this account title are the
water, butane gas, and prepaid load. Let’s discuss these assumptions one-by-one.

Water – The water was assumed to be bought in gallon (Living Water gallon for example) and was divided into six days of
business operation [P40.00/6 = 6.666 or P7.00]. It is because it seems easier for the entrepreneur to foresee the amount to
spend in water used for cooking and for cleaning the tools and equipment used in the operation. One may also use their
monthly water bill at home during the start but it might take us a lot of time estimating the business’ water consumption
deducted to the monthly bill you have. Thus, in your computations, it is suggested to quantify your water consumption in
gallon to easily get the amount of your Day 1 water consumption.
Butane Gas – The entrepreneur has the freedom to choose what to use in cooking the lumpia. He may use butane gas,
electric stove, or a pack of logs available in the nearest local store. It depends on the cooking equipment used in the
preparation. However, for entrepreneurs who will use electric stove, you may allocate an amount equivalent to the
electrical energy used in the business operation.

Prepaid Load – This was also added as part of the given sample to be used in the promotion of the product. Since we
cannot go out from our houses, we may text, call, or even message our friends residing nearby your location to inform
them that you are selling something. As an entrepreneur of this generation, using social media for promotion will also help
you boost your daily sales. For entrepreneurs using their home internet connection, you may allocate a daily budget that
goes to the payment of your monthly internet bill.

The third part of the Six-Day Projected Expenses in the given example is the Transportation Expenses. As you can see,
the amount incurred recorder in this account title is only P20.00 that includes a two-way transportation from your house to
the market place and from the marketplace back to your house.

As an entrepreneur, it is also part of our preparations to plan what, when, and where to purchase our store
supplies. Doing this will help us save time, effort, and money.
After determining the expenses for Day 1, you are now able to project the preceding days’ expense. We are going
to follow the 20% projected increase on daily Sales. Below is an example.

Name of the Business Entity

Projected Six-Day Expenses
For the Period Ended Date

PARTICULARS DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 DAY 6 TOTAL

Store Supplies Expense P45.00 P54.00 P64.80 P77.76 P93.31 P112.00 P446.87
Utilities Expense P30.00 P30.00 P30.00 P30.00 P30.00 P 30.00 P180.00
Transportation Expense P 3.30 P 3.30 P 3.30 P 3.30 P 3.30 P 3.30 P 20.00
TOTAL P78.30 P87.30 P98.10 P111.06 P126.61 P145.30 P646.87
The table above shows the projected six-day expenses of the business entity. With the use of the same percent rate
of increase on Sales. This is because as the number of products to be sold increases, so as the number of store supplies
needed to produce these products daily. Just like the projected Sales, 20% increase were utilized to be added on the daily
amount of expenses. An example is shown below:

Store Supplies Expense

Day 2 Expense = Day 1 (20%) + Day 1

= P45.00 (.20) + P45.00

= 9 + P45.00

= P54.00
This means that the Store Supplies
Expense on the second day is 54 pesos.
However, as you observe, the amount of Utilities Expense and Transportation Expense remained the same per
day. This is because the cost per particular under Utilities Expense was at the maximum amount and was estimated to be
fixed. Just as the amount for the prepaid load we bought on the first day of our business operation, it has an amount of
P50.00 good for three-day subscription. The P50.00 amount is at the maximum in a sense that for a start-up business, you
can now promote and sell your products through text, call, or social media networks in a day with your three-day
subscription. Also, it remained fixed unless you will be needing to subscribe for another prepaid load promo. For the
transportation on the other hand, it only shows a P20.00 expense that means the purchasing of store supplies is done only
one day in a week. It could be on a Monday of Saturday, depending on the entrepreneur’s preference though in the given
sample, it was not specified.
Financial Statements
 This portion of the business plan includes the Statement of Financial Position (SFP) or the Balance Sheet and the
Statement of Comprehensive Income (SCI) or the Income Statement.

Statement of Comprehensive Income

Another financial report that is to be included in the business plan is the Statement of Comprehensive Income
(SCI). This financial report shows the “performance” of the business. Its components are the income and expenses. The
Net Income of this report will be used as part of the SFP particularly, as part of the Owner’s Equity portion.

Income – This is the income generated by the business for the period. This can either be a Service Income (an income
generated from the services of the company provides) or a Sales Revenue (income earned from the selling of
merchandise). However, if the company provides two types of products (goods and services), these two kinds of income
might be present in the SCI but some start-up businesses generalized this as Sales Revenue.

Expenses – This is a list of expenses that the company incurred for the operation of the business. (Ex. Utilities Expense,
Store Supplies Used, Rent Expense, Taxes and Licenses)

An example is presented below:

Name of Your Business
Statement of Comprehensive Income
For the Month Ended 31 August 2020

Sales Revenue P 7,000

Less: Store Supplies Expense 2,200

Office Supplies Expense 800
Utilities Expense 500

Profit for the month P 4,000