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This document provides information about a Grade 12 Entrepreneurship lesson on forecasting business revenues. The lesson will help students understand product development fundamentals, describe business operations using the 4 M's framework, and forecast costs and revenues. The document outlines the importance of financial planning and management for a business. An entrepreneur must monitor finances closely as the business's sustainability depends on it. Financial management involves raising capital, keeping personal and business finances separate, and making decisions based on financial data and performance. Collateral may be required when seeking loans from banks.

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Kisha Dela Cruz Lasam
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53 views2 pages

b7,8'' H (Nfhu0j 2

This document provides information about a Grade 12 Entrepreneurship lesson on forecasting business revenues. The lesson will help students understand product development fundamentals, describe business operations using the 4 M's framework, and forecast costs and revenues. The document outlines the importance of financial planning and management for a business. An entrepreneur must monitor finances closely as the business's sustainability depends on it. Financial management involves raising capital, keeping personal and business finances separate, and making decisions based on financial data and performance. Collateral may be required when seeking loans from banks.

Uploaded by

Kisha Dela Cruz Lasam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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INTERNATIONAL SCHOOL OF ASIA AND THE PACIFIC

HIGH SCHOOL DEPARTMENT


AlimannaoHills, Peñablanca/Atulayan Sur, Tuguegarao City, Cagayan
Email address: isaphsdept@isap.edu.ph / isaptuguegaraocitygmail.com| contact number: 0936-193-1278
Learning Area Entrepreneurship Year Level Grade 12

Subject Teacher Krisca Andaya No. of Hours: 2 Hours

Learning At the end of the lesson, the learners will be able to:
Objectives a. understand the fundamentals of product development;
b. describe the 4 M’S(Method, Manpower, Machine, Materials) of operation;
and
c. forecast the cost incurred and revenue of the business.
Module 5

Lesson 3: Forecast the revenues of the business

The Financial Plan

One of the most difficult parts of the business plan is the financial plan. Not all
entrepreneurs are adept with accounting procedures, rules, and reporting policies. However, there
is no choice for the entrepreneur but to be familiar with numbers. The sustainability of the
business depends on a meticulous monitoring finances. This is the portion of the business plan
that speaks of the product or service performance. It also provides the entrepreneur financial data
such as liquidity, cash flow, and financial standing of the business. The financial plan also gives the
entrepreneur bases for his or her decisions on financial matters such as offering credit terms to
customer, applying for bank loan, expand, or sell the business. Without proper accounting of
business activities and transactions, the entrepreneur will at loss or where his or her business
leading him or her.

Financial management begin when the entrepreneur starts to raise capital for the business
venture. Capital is the money that will be allocated by the entrepreneur to establish a business. It
shouldn’t be mixed with the personal money of the entrepreneur. A business is a separate entity
and should not be mixed with the personal finances of the entrepreneur.

A number of entrepreneurs produce capital out of their personal savings. This money came from a
disciplined habit of consistently saving when the entrepreneur used to be an employee. Some of
the budding entrepreneurs borrow money from families or friends, whereas some look for
interested investors or stakeholders. The entrepreneur can also turn to banks or financial
institution for capital, but they usually require collaterals and base their credit decisions on the
business performance (i.e., the net income of the business). Some start-ups may find it difficult to
secure a loan from banks because of the performance angle as one of the qualifications.

Collateral refers to a high value asset that is submitted by the business to the bank when
applying for a loan and will be subject or repossession if business defaults. Regardless of where
the capital was sourced, putting this capital at risk is one of the major reasons that the most
entrepreneurs are afraid to engage in a business venture. But those who take risk also gain the
experience and use this experience to succeed. Not all entrepreneurs became successful the first
time they ventured into business. All of them experience failures and used this failures to their
advantage.
References:
Books

Ronaldo „Ron‟ S. Batisan, (2016) Diwa Senior High School Series: Entrepreneurship Module, Diwa
Learning Systems, Inc.

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