Mind Your Business

Author:

Marsha Booker

Unit Title:

Mind Your Business

Grade:

7

Subject:

Pre-Algebra

Estimated Duration:

10 Days

Unit Activities:

Activity 1: Intro to Small Business

Activity 2: The Challenge

Activity 3: Write a Business Plan

Activity 4: Evaluating Business Plan                       

Date:

July 2015

Unit Academic Standard

7. RP.A.3 Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.

The Big Idea (including global relevance)

Small businesses are a critical component of and major contributor to the strength of local economies.  Every day hundreds of new small businesses are started, and also every day, many of those businesses fail.  It is a struggle for individuals, families, or groups of likeminded individuals to begin a business venture that ends up being a success (either by sustaining or growing).

The Essential Question

What is a small business?

How do you start a small business?

How do small businesses thrive?

The Hook

Students would be more willing to start their own business if they felt it was an attainable goal.  Students will play a GoVenture simulation game called Lemonade Stand  http://goventure.net/play.html  They will make decisions about their lemonade stand (small business) concerning inventory, quality of product and price.  Their decisions will directly affect their profit.

The Challenge and Constraints

Working in small groups (3-4 people) students will produce a well thought out business plan, for a product/service that they will create and sell. Students may not spend more than $25.00 to create their product/service.  Students must take out a $100 loan for start-up costs.  All loans must be paid back at an interest rate of 5%. Labor must be paid at a rate of $8.10 per hour. Students must pay taxes of 7% on profit.


Description of Challenge (Either Product or Process is clearly explained below):

List the Constraints Applied

Students decide on a product to create.  They will start a small business and sell their They must write a business plan   that will enable the business to thrive.  The business plan must outline idea, marketing strategy, start-up costs, expenses per unit, price per unit, and profit per unit.

  • Must create something.  Cannot simply buy and sell something from the store
  • Cannot spend more than $25 on materials to make product
  • Must take out a $100 loan for business start- up costs, and pay back loan at 5% interest rate
  • Must pay for labor, at $8.10/hr., if someone else assists with making the product
  • Must create a billboard to advertise product. Billboard fee is $15
  • Must pay $10 for booth at Jaguar Market 
  • Must pay taxes of 7% on profit
Anticipated Guiding Questions
  1. What is a business plan?
  2. What information is listed in a business plan?
  3. How do small businesses make a profit?
  4. What expenses do small businesses have to pay for?
  5. How do businesses get repeat customers?
Engineering Design Process (EDP)

How will students test or implement the solution? What is the evidence that the solution worked? Describe how the iterative process from the EDP applies to your Challenge

Identify -   small businesses tend to fail due to lack of a good business plan

Gather information – students will brainstorm/research what product they would like to sell and what things they need to consider when writing a good business plan tor their product

Identify Alternatives – students brainstorm in groups about what will make a small business successful

Select Solutions – students decide on a business plan to follow

Implement Plan – Students will follow their business plan by starting up a small business and selling their product

Evaluate Solution – students will evaluate their business plan by looking at number of items sold, and their profit

Refine – students will consider what changes need to be made in order to maximize their profits during the second selling day

Communicate Solution – students will do a class presentation that will include Power Point slides

How will students present or defend the solution?  Describe if any formal training or resource guides will be provided to the students for best practices (e.g., poster, flyer, video, advertisement, etc.) used to present work.

Students will create a Power Point that displays the following:  Product/Service. Business Plan, Advertisement, Financial Report, Reflections. 

Students will be given a mini lesson/review on creating Power Point Presentation.

Students will create a billboard to advertise their product in Art class.

Misconceptions
  • Starting a business is something only certain people can do. – Students do not see themselves as having the ability to start their own business
  • The tax rate is simply added on to the price.  For example, if the tax rate is 6.5%, you just add 6.5 to the subtotal to get the final price.
  • If something is marked down a second time, you can add the two discount percentage together and multiply by the original price to get the discount amount.
Unit Activities

Pre-Test will be given prior to the start of the unit.  This unit will serve as a culminating activity for using proportional relationships to solve multistep ratio and percent problems.

Lesson 1, Activity 1

Prior to Unit:  Pre-Test

Day 1:  

a) Maya Penn’s TEDWoman Talk: “Meet a Young Entrepreneur”  https://goo.gl/JOLl7G)

https://goo.gl/JOLl7G)

b) Biz Kids video - “Buttons by Jordan” http://bizkids.com/clip/buttons-by-jordan

c)  Moxie Girl Comics article - http://goo.gl/BESzC4

d) Millennials Infographic http://www.goldmansachs.com/our-thinking/pages/millennials/

e) Homework – Read the article “Top 10 Reasons Why Small Business Fails” http://goo.gl/y9BKnq   and “Zandra Beauty”  http://goo.gl/4LdNKb  as preparation for Seminar.  Prepare three questions to throw out during the seminar discussion.

Day 2: Seminar discussion on “Top 10 Reasons Why Small Business Fail,” Moxie Girl article, Zandra Beauty article and videos, using questions generated by students. 

Lesson 1, Activity 2  

Day 3: 

a) Hand out Biz Terms 1.1.02c

b) View Biz Kids video “Business Genie”   http://goo.gl/Qx15H4

c) Play GoVenture simulation game Lemonade Stand  http://goventure.net/play.html

Day4:

a) Challenge: Learners will work in groups of 3-4 and develop a business plan for a product that they are to create and sell. Groups must create a billboard (to be completed in Art class), and a Power Point presentation.  Groups will have 2 days to sell their product at the Jaguar Market.

b) Distribute Business Plan Template 1.1.02d

c)  Distribute the 4 P’s of Marketing worksheet 1.1.02e 

d)  Distribute Unit Scoring Rubric 1.1.02f

Lesson 2, Activity 1

Day 5: 

a) Finalize decisions on product. 

b) Continue researching marketing techniques (pricing, advertising, etc.)

c) Complete Calculating Your Product Price worksheet. 1.2.01g

d)  Homework- work on product/service

Day 6: 

a) Complete Small Business plan 1.1.02d

b) Homework- work on product/service

Lesson 2, Activity 2

Day 7:  

a) Participate in Jaguar Market (during Activity bell)

b) Students keep track of sales on Inventory Tracking Log 1.2.02h

c) Groups evaluate business plan.  Will use Success Guide 1.2.02i as reference.

c) Compute profit/loss. Will use “Are You Making a Profit?” 1.2.02j as reference.

d) Make revisions to business plan.

e)  Work on presentation. 

Day 8:

a) Participate in Jaguar Market (during Activity bell)

b) Complete final computations

c) Work on presentation

Day 9:  Group Presentations

Day 10:  Post-Test

Embedded CBL/EDP

  1. Identify the problem – Lesson 1, Activity 1
  2. Gather Information – Lesson 2, Activity 1
  3. Identify Alternatives – Lesson 2, Activity 1
  4. Select Solutions – Lesson2, Activity 1
  5. Implement Solutions – Lesson 2, Activity 2
  6. Evaluate Solutions – Lesson 2, Activity 2
  7. Refine – Lesson 2, Activity 2
  8. Communicate – Lesson 2, Activity 2
Additional Resources

Percent of change video:

https://learnzillion.com/lessons/880

Pre-Unit and Post-Unit Assessment Instrument

Pre-Test/ Post-Test (1.2.02l)