Entrepreneurshi

p
Forth year
High School
Starting and
Expanding
a
Small Business
What this module all about

Good day my students! I hope you will find this module interesting. Let’s talk about Small
business, the steps on how to start a small business and how to expand it. This module will be a new
experience for you. I’ll hope you will learn a lot of things from this module.

What you are expected to learn

This module is for you. In this module, you are expected to:
• Identify the Business Opportunity
• Prepare a business plan
• Take business naming seriously
• Know business license and permits in putting up a small business
• Know the step in office set up
• Determine the good business location
• Know the importance of business insurance

How to learn from this module

Now, you will be able to learn about starting and expanding a small business. Who knows,
someday you may become a successful owner of a business your family, relatives and your friends
can be proud of. However, you have to:

1. Study the readings very well;

2. Do the activities and work on the self-check exercises honestly
3. Do the suggested tasks to reinforce learning and gain insights into specific
topics; and
4. Answer the pretest and the posttest.

Before we proceed to our topics, take the pretest first. This test is particularly prepared to
determine your previous knowledge of the lessons you are about to study. Are you ready?
Good luck!
 PRETEST

Multiple Choice:
Directions. Read each question very well. Choose the letter of the correct answer and write it on
your notebook.
1. Enterprise owned and managed by an individual or group with only enough resources to
continue its operation?

a. Large business
b. Medium business
c. Small business
d. Micro-business

1. Grocery stores and bakeshops are the example of what type of small entrepreneurship?

a. Large business
b. Medium business
c. Small business
d. Micro-business

1. The owner heads the enterprise and employs one or two individuals to help him/her. What
type of small entrepreneur is that?

a. Large business
b. Medium business
c. Small business
d. Micro-business

1. Owned and operated by a single person, two business partners or a corporation.

a. Large business
b. Medium business
c. Small business
d. Micro-business

1. A Sari-store is a example of what type of small entrepreneurship?

a. Large business
b. Medium business
c. Small business
d. Micro-business
 1. What is the first step of starting a small business?

a. Build a Business Plan

b. Identify the Business Opportunity
c. Choose a Business Structure
d. Naming a business

1. To start a business, you must invest in the business. What step of starting a business is that?

a. Name Your Business

b. Choose a Business Structure
c. Find Start-up Money
d. Get Your Business License and Permits

1. One of the multitudes of tasks in starting a business is the setting up of your office. What step
of starting a business is that?

a. Name Your Business

b. Choose a Business Structure
c. Find Start-up Money
d. Set Up & Determine Your Business Location

1. Setting up your accounting will help you understand the financials of running a business and
help you advert failure. What step of starting a business is that?
a. Create an Accounting System
b. Name Your Business
c. Choose a Business Structure
d. Find Start-up Money
1. What is SWOT analysis means?
a. Strength, weaknesses, opportunities and threat
b. Strength, weaknesses, opportunity and thread
c. Strong, weak, opportunities and thread
d. Strength, weak, obstacle and trend

You may refer to the last page for the key to corrections. If you were able to answer all the
Items correctly, very well! However if you failed to get the correct answer in all the items, start
studying the succeeding activity.
 Lesson 1
Step in starting a small business
small business enterprise owned and managed by an individual or group with only enough
resources to continue its operation. Other example for a small business like this are grocery stores and
bakeshops.

Activity 1
Starting a small business requires determination and motivation. Here are the critical steps to
provide you with the know-how to have a successful small business startup: Identify Your Business
Opportunity, Build a Business Plan, Find Start-up Money, Name Your Business, Choose a Business
Structure, Get Your Business License and Permits, Set Up & Determine Your Business Location, Get
Business Insurance and Create an Accounting System.
The illustration below has something to do with the starting a small business. Write something
about the pictures. Use a separate sheet of paper.
Do not proceed to the next page until you have finished this activity.

Do you think you were able to do the right thing? If yes, good! If not, try to read the brief
explanation on the topic
 Starting a small business requires determination and motivation. You must follow the critical steps
to provide you with the know-how to have a successful small business startup.
Step 1 identify Your Business Opportunity
Step 2 Build a Business Plan
Step 3 Find Start-up Money,
Step 4 Name Your Business,
Step 5 Choose a Business Structure,
Step 6 Get Your Business License and Permits,
Step 7 Set Up & Determine Your Business Location,
Step 8 Get Business Insurance and;
Step 9 Create an Accounting System.

Self-check:

Matching type. Match Column A with Column B. Write the letter of the correct answer on the space
before the number.

A B
_____ 1. Get business insurance a. step 1
_____ 2. Name your business b. step 2
_____ 3. Identify your business opportunity c. step 7
_____ 4. Find start-up money d. step 5
_____ 5.Build a Business Plan e. small business
______ 6.Choose a Business Structure f. step 3
______ 7.Get Your Business License and Permits g. step 8
______ 8. Set Up & Determine Your Business Location h. step 9
______ 9. Create an Accounting System i. step 6
_____ 10. Grocery stores and bakeshops j. step 4

Lesson 2
Expanding a small business

Activity 2:
List down the name of the bakeshops near in your house.
____________________________ ________________________________
____________________________ ________________________________
____________________________ ________________________________
____________________________ ________________________________

Have you ever thought of asking yourself the following questions?

“If there are no bakeshops near in your house. Will it be easier for us to buy a bread or cake? Who
do you think should be benefited?”
 This lesson will help you to find out how to expand a small business. There are important
information’s about expanding a small business below for you to read. Enjoy reading, and at the same
time, take note of the important information the lesson gives you.

There are things to consider before expanding the small business. Growth and expansion require
careful planning. You cannot simply wake up one day and decide that you will open a second or third
store, or increase your product line outright.

The decision to extend the scope of the business must be a result of thoughtful consideration of
various factors, including the financial, logistical, even your emotional readiness. The rule of thumb is
that you should only expand when there are untapped opportunities that can benefit your business. There
may be a niche that you want to capture; or a location not serviced even by your competitors.

Expanding operations does not always mean more profit. You may be doing more volume by
adding a second and third store and working harder, but with the additional overhead, you may not make
any more money.

Self check:

True of False. Write TRUE if the statement is true; write FALSE if the statement is false.
________1. Growth and expansion require careful planning.
________2.There is no thing to consider before expanding the small business
________ 3. The decision to extend the scope of the business must be a result of thoughtful consideration
of various factors, including the financial, logistical, even your emotional readiness.
________4. Expanding operations does not always mean more profit.
________5.The rule of thumb is that you should only expand when there are untapped opportunities that
can benefit your business.

ANSWERS KEY:
PRETEST
Multiple Choice.
1. C
 2. C
3. D
4. B
5. D
6. B
7. C
8. D
9. A
10. A

Lesson 1 self check

Matching type.
1. G
2. J
3. A
4. F
5. B
6. D
7. I
8. C
9. H
10. E

Lesson 2 self check

True or false.
1. True
2. False
3. True
4. True
5. True

Joram U. Buque
BBTE 3-1

Engr. Rey Biluan

English Editor