LEARNING

MODULE
FOR
ENTREPRENEURSHIP
12

Student: RHYRSS PAULINE MARTINZ

Subject Teacher: JONIL IDULSA

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CONCEPT NOTES:
THE 4M’s OF BUSINESS OPERATION

MANPOWER. Human resources, are the people of a workforce in an organization is the total number of people
who can work to get something done.

METHODS. An established, habitual, logical, or prescribed practice or systematic process of achieving certain
ends with accuracy and efficiency, usually in an ordered sequence of fixed steps. See also scientific method and
procedure.

MACHINE. An apparatus using or applying mechanical power and having several parts, each with a definite
function and together performing a particular task.

MATERIALS. Basic substance in its natural, modified, or semi-processed state, used as an input to a production
process for subsequent modification or transformation into a finished good.

TASK NO. 01

1. WHAT IS THE SIGNIFICANCE OF EVERY FACTOR IN THE BUSINESS OPERATION?

2. FOR YOU, WHICH OF THE FOLLOWING FACTORS PLAY THE VERY IMPORTANT ROLE IN THE OVERALL
BUSINESS OPERATION?
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CONCEPT NOTES:
DEVELOPING A PRODUCT DESCRIPTION AND PRODUCT PROTOYPE

PRODUCT DESCRIPTION. Is a structured format of presenting information about a product which

includes its benefits, form, presentation, price, purpose of selling and etc.

Example:

PRODUCT PROTOTYPE. An original or first model of something from which other forms are copied or
developed.

TASK NO. 02

1. PROJECT YOUR OWN PRODUCT. CREATE A PRODUCT DESCRIPTION. CITE DETAILS OF THAT
PRODUCT THAT MAKES IT DIFFERENT FROM OTHER EXISTING PRODUCTS.

2. WHAT MIGHT BE THE IMPORTANCE OF CREATING A PROTOTYPE BEFORE LAUNCHING THE

FINAL PRODUCT IN THE MARKET?
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CONCEPT NOTES:
RECRUITMENT AND SUPPLIER SELECTION PROCESS

WHAT YOU SHOULD LOOK FOR IN A SUPPLIER?

 Reliability
 Quality
 Value for money
 Strong service and clear communication
 Financial security
 Partnership approach

TASK NO. 03

Cite characteristics of potential supplier/s you want to have in your business guided by an acrostic.

S–

U–

P–

P–

L–

I–

E–

R–
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CONCEPT NOTES:
RECRUITING QUALIFIED PEOPLE FOR ONE’S BUSINESS
DEVELOPING A BUSINESS MODEL

Hiring the best employees is more important than ever

Leaders view new employees as an investment and anticipate an excellent financial return over time.

1. Competent: This is still the first factor to consider. Does the potential employee have the necessary skills, experiences and education to successfully complete the
tasks you need performed?

2. Capable: Will this person complete not only the easy tasks but will he or she also find ways to deliver on the functions that require more effort and creativity? For
me, being capable means the employee has potential for growth and the ability and willingness to take on more responsibility.

3. Compatible: Can this person get along with colleagues, and more importantly, can he or she get along with existing and potential clients and partners? A critical
component to also remember is the person’s willingness and ability to be harmonious with you, his or her boss. If the new employee can’t, there will be problems.

4. Commitment: Is the candidate serious about working for the long term? Or is he or she just passing through, always looking for something better? A history of past
jobs and time spent at each provides clear insight on the matter.

5. Character: Does the person have values that align with yours? Are they honest; do they tell the truth and keep promises? Are they above reproach? Are they selfless
and a team player?

6. Culture: Every business has a culture or a way that people behave and interact with each other. Culture is based on certain values, expectations, policies and
procedures that influence the behavior of a leader and employees. Workers who don’t reflect a company’s culture tend to be disruptive and difficult.

7. Compensation: As the employer, be sure the person hired agrees to a market-based compensation package and is satisfied with what is offered. If not, an
employee may feel unappreciated and thereby under perform.

A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts.
The process of business model construction and modification is also called business model innovation and forms a part of business strategy.

Difference between business plan and business model. The business model is the mechanism through which the company generates its profit while
the business plan is a document presenting the company's strategy and expected financial performance for the years to come.

TASK NO. 04

1. Make your own criteria of recruiting qualified employees for your business.

2. What is the importance of Business Model?

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CONCEPT NOTES:
FORECASTING REVENUES, COST TO BE INCURRED AND PROFIT

Projected revenue refers to the estimated money a company will generate during a specific period. The projections often refer to monthly, quarterly or annual accounting
periods. Companies project revenue using a combination of research and internal knowledge.

Forecasting business revenue and expenses during the startup stage is really more art than science. 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 your business if you're unable to provide a set of thoughtful
forecasts. More important, proper financial forecasts will help you develop operational and staffing plans that will help make your business a success.

COST ESTIMATING DEFINED

Cost estimating may be defined as the process of determining the probable cost of the product before the start of manufacture.

COSTING - is the determination of an actual cost of a component after adding different expenses incurred in various departments.
- a systematic procedure for recording accurately every item of expenditure incurred on the manufacture of a product by different sections of any manufacturing concern

The purpose of cost estimating is to find the cost of the manufacturing operations and to assist in setting the price for the product.

COMPUTING BUSINESS PROFIT

Business profit refers to the excess of the business’ total income less all expenses within the accounting period, which may be presented monthly, quarterly or annually. However, please be
informed that a loss, instead of a profit, will be the result if the total expenses exceed the total income of the business. For all business owners, profits are important in order for their business
to survive. In the first place, unless you’re in to charity, do you know anyone who wants to conduct business without making profits?
As business owner, you must have a good understanding of your business’ financial statements. If you’re not, you may need a professional help from people whom you can get a good
accounting and financial advice – they are generally referred to as Accountants. They can review your financial statements and can also provide valuable advice on ho w to improve your
accounting records.
So how do you compute your business profit? The simplest formula is:

Total Income – Total Expenses = Net Profit

• Total income generally includes revenues or sales of goods or services to customers. It may also include income from deposits, investments and any other revenue
sources such as interest, royalties, dividends, and gains on exchange of properties.
• Total expenses includes all costs or expenses related to the sale transactions such as production costs, marketing and all other cost and expenses related to your
business operations including depreciation, losses, taxes, and interest on debt.

In simple term, profits are all the incomes you earned from your business less all the expenses you’ve incurred to run the business.

Income – represents increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity,
other than those relating to contributions from equity participants.
Revenue – represents the gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an entity (such as sales of goods, sales of services,
interest, royalties, and dividends).
Gains – represent other items that meet the definition of income and may, or may not, arise in the course of the ordinary activities of an entity. Gains represent increases in economic benefits
and as such are no different in nature from revenue. Based on the definitions above, we can say that income covers both revenue and gains. This means that both revenues and gains can be
considered as income or part of the income. In other words, income is a generic term, which can be a revenue, a gain, or both.
Between revenue and gain, the difference is that revenue always arises in the course of the business’ ordinary activities (e. g., sales of goods or sales of services), while gain represents other
items that are considered as income which may or may not arise in the ordinary activities of the business or entity (e.g., gain from sale of an old property or gain from the sale of investments).

TASK NO. 05

1. Why do you think forecasting revenues, cost and profit are needed in the business operation?

2. If you will venture for a business, how are you going to keep track of its income productivity?