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Project WorkbookTeacher Edition

First Edition

LearnKey provides on-demand training courses and online learning solutions to education, government, business, and individuals world-wide. With dynamic video-based courseware and effective learning management systems, LearnKey provides expert instruction for popular computer software, technical certifications, and application development. LearnKey delivers interactive courses online. For a complete list of courses visit:

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© 2017 LearnKey www.learnkey.com

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Table of ContentsIntroductionUsing This Workbook ____________________________________________________________________6Best Practices Using LearnKey’s Online Training _________________________________________________7Skills Assessment _______________________________________________________________________8Entrepreneurship and Small Business Time Tables _______________________________________________10

Session 1Fill-in-the-Blanks Session 1 _______________________________________________________________12Characteristics _______________________________________________________________________13Self-Assessment _______________________________________________________________________14Risks and Benefits _____________________________________________________________________15

Session 2Fill-in-the-Blanks Session 2 _______________________________________________________________17Opportunity Types _____________________________________________________________________18Demands for Services __________________________________________________________________19Potential Customers ___________________________________________________________________20Value Propositions _____________________________________________________________________21

Session 3Fill-in-the-Blanks Session 3 _______________________________________________________________23Business Plan — Oral Presentation _________________________________________________________25Legal Structures _______________________________________________________________________26Start-Up Cash ________________________________________________________________________27Compound Interest ____________________________________________________________________28Ethics ______________________________________________________________________________29

Session 4Fill-in-the-Blanks Session 4 _______________________________________________________________31Capital Needs and Division of Labor ________________________________________________________32Required Taxes ________________________________________________________________________33Intellectual Property ____________________________________________________________________34SOPs _______________________________________________________________________________35Supply Chain _________________________________________________________________________36Growth and Sustainability ________________________________________________________________37

Session 5Fill-in-the-Blanks Session 5 _______________________________________________________________39Successful Sales Process _________________________________________________________________40Finding Customers _____________________________________________________________________41Retaining Customers ___________________________________________________________________42Communication Through Marketing ________________________________________________________43

Session 6Fill-in-the-Blanks Session 6 _______________________________________________________________45Financial Categories ____________________________________________________________________46Credit Ratings ________________________________________________________________________47Fixed and Variable Expenses ______________________________________________________________48Pricing _____________________________________________________________________________49Cash Flow ___________________________________________________________________________50Break-Even Point ______________________________________________________________________51

AppendixEntrepreneurship and Small Business Lesson Plan _______________________________________________53Entrepreneurship and Small Business Course Outline ___________________________________________60

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6 | Introduction Entrepreneurship and Small Business Project Workbook

Using This WorkbookThis project workbook contains practice projects and exercises to reinforce the knowledge you have gained through the video portion of the Entrepreneurship and Small Business course. The purpose of this workbook is twofold. First, to get you further prepared to pass the Entrepreneurship and Small Business certification exam. Secondly, to actively engage your thinking about opportunities that lie in the realm of entrepreneurship.

This project workbook is versatile in that the projects follow the order of the video portion of this course. You can complete the workbook exercises as you go through each section of the course, complete several of these at the end of each session, or complete them after viewing the entire course. The key is to go through these projects as they will help strengthen and solidify your knowledge of this course.

Each project is mapped to a specific video (or videos) in the course and specific test objectives. The materials you will need for this course include:

• Adobe Reader or equivalent software• A calculator (not required, but useful)

Benefits: • Thought-provoking exercises to generate thoughts and discussion regarding entrepreneurship• Practical application of business skills• Further preparation for the Entrepreneurship and Small Business certification exam

Notes for Teachers:• Most workbook projects will not require downloaded files; students may type directly in their workbook. Projects requiring a separate file are noted

• Each workbook project has notes for teachers regarding how to grade a project or suggestions of what to look for in student projects

7 | Introduction Entrepreneurship and Small Business Project Workbook

Best Practices Using LearnKey’s Online TrainingLearnKey offers video-based training solutions which are flexible enough to accommodate the private student, as well as educational facilities and organizations.

Our course content is presented by top experts in their respective fields and provides clear and comprehensive information. The full line of LearnKey products has been extensively reviewed to meet superior standards of quality. The content in our courses has also been endorsed by organizations, such as Certiport, CompTIA®, Cisco, and Microsoft. However, it is the testimonials given by countless satisfied customers that truly set us apart as leaders in the information training world.

LearnKey experts are highly qualified professionals who offer years of job and project experience in their subjects. Each expert has been certified in the highest level available for their field of expertise. This provides the student with the knowledge necessary to also obtain top-level certifications in the field of their choice.

Our accomplished instructors have a rich understanding of the content they present. Effective teaching encompasses not only presenting the basic principles of a subject, but understanding and appreciating organization, real-world application, and links to other related disciplines. Each instructor represents the collective wisdom of their field and within our industry.

Our Instructional TechnologyEach course is independently created, based on standard objectives provided by the manufacturer for which the course was developed.

We ensure that the subject matter is up-to-date and relevant. We examine the needs of each student and create training that is both interesting and effective. LearnKey training provides auditory, visual, and kinesthetic learning materials to fit diverse learning styles. The following are three levels of implementation:

Course Training ModelThe course training model allows students to proceed through basic training, building upon primary knowledge and concepts to more advanced application and implementation. In this method, students will use the following toolset:

Pre-assessment: The pre-assessment is used to determine the student’s prior knowledge of the subject matter. It will also identify a student’s strengths and weaknesses, allowing the student to focus on the specific subject matter he/she needs to improve most. Students should not necessarily expect a passing score on the pre-assessment as it is a test of prior knowledge.

Video training session: Each course of training is divided into sessions that are approximately one hour in length. Each session is divided into topics and subtopics.

Practice Labs: In addition to the video training, there are practice labs available for students to use to reinforce the skills learned in the video training portion of the course.

Post assessment: The post assessment is used to determine the student’s knowledge gained from interacting with the training. In taking the post assessment, students should not consult the training or any other materials. A passing score is 80 percent or higher. If the individual does not pass the post assessment the first time it is taken, LearnKey would recommend the incorporation of external resources, such as the workbook and additional customized instructional material.

8 | Entrepreneurship and Small Business Project Workbook

Skills AssessmentInstructions: Rate your skills on the following tasks from 1-5 (1 being needs improvement, 5 being excellent).

Skills 1 2 3 4 5

Identify the characteristics entrepreneurs have.

Given a scenario including a self-assessment outcome, identify the strengths, weaknesses, and risk tolerance the self-assessment identifies and how to compensate with services.

Given a scenario, recognize a business opportunity.

Identify the risks, benefits, opportunities, and drawbacks of being an entrepreneur.Identify the benefits and drawbacks of different types of opportunities (e.g. start a new business, buy an existing business, and buy a franchise.)Given a scenario, analyze the demand for the good or service and opportunities in an environment.

Given a scenario, identify the customers or potential customers for a business.

Given a scenario, recognize a value proposition.

Identify the purposes and value of a business plan.

Identify the appropriate legal structure, benefits, and drawbacks for different legal structures for a business.Given a scenario, calculate the amount of money (cash and credit) needed to start a business.Identify the benefits and drawbacks of various sources of start-up funding: equity (friends/family, angels, venture), debt (bank, credit cards, personal loans), and grants (government, foundation, corporate).Given a scenario, identify support that is available for the business on a local, state, and federal level.

Identify the ethical practices and social responsibilities of a business.

Identify potential exit strategies for a business.

Given a scenario, identify key positions and human capital needs (including compensation and benefits).Given a scenario, determine whether work can be completed by the owner or whether employees or service providers are needed.

Given a scenario, identify the taxes that are required.

Given a scenario, identify intellectual property issues of trademarks, copyrights, and patents. Given a scenario, identify standard operating procedures (e.g., setup, conduct, internal controls, separation of duties). Given a scenario, identify a supply chain (e.g. clear commitments, active communication, negotiated costs).

Given a scenario, identify the factors that lead to sustainability.

Given a scenario, identify milestones as part of a growth strategy.


Instructions: Rate your skills on the following tasks from 1-5 (1 being needs improvement, 5 being excellent).

Skills Assessment

Skills 1 2 3 4 5Given a scenario, develop a sales strategy and identify characteristics of a successful sale.

Given a scenario, identify and analyze the cost/benefits of finding customers.

Given a scenario, identify how to retain customers and develop a relationship with repeat customers. Given a scenario, determine value and methods of communication, including: websites, brochures, social media, and advertising.Given a scenario, interpret basic financial statements such as income statements and balance sheets.Given a scenario, identify the factors that influence credit ratings and the importance of a positive credit rating.

Given a list of expenses, identify which are fixed versus variable.

Given a scenario, identify the factors that impact the price to a customer.

Given a scenario, identify and analyze cash flow, including accounts receivable, accounts payable, inventory, and debt.

Given a scenario, create a cash flow budget.

Given a scenario, identify the break-even point for the business.


Entrepreneurship and Small Business Time Tables

Session 1 Actual TimeCharacteristics of the Entrepreneur 04:38

Self-Assessments 03:17

Business Opportunities 05:02Risks/Benefits of Being an Entrepreneur 08:47

Total Time 21:44

Session 2 Actual TimeTypes of Opportunities 04:30

Demand 08:55

Customers 04:53

Value Proposition 02:48

Total Time 21:06

Session 3 Actual TimeBusiness Plan 02:55

Legal Structures 02:36

Getting Started 04:14

Licenses and Regulations 02:05

Start-Up Funding 03:36

Support 01:55

Ethics and Social Responsibility 02:44

Exit Strategies 03:17

Total Time 23:22

Session 4 Actual TimePersonnel 03:20

Division of Labor 02:27

Taxes 01:58

Intellectual Property 03:02

Standard Operating Procedures 02:14

Supply Chain 03:10

Sustainability 02:38

Growth Milestones 02:25

Total Time 21:14

Session 5 Actual TimeSuccessful Sales 04:15

Finding Customers 02:51

Retaining Customers 03:53

Communication 04:16

Total Time 15:15

Session 6 Actual TimeFinancial Statements 05:02

Credit Ratings 03:23

Expenses 02:14Pricing 02:48Analyze Cash Flow 04:15Cash Flow Budget 03:53Break Even 05:08

Total Time 26:43

Session 1

12 | Session 1 Entrepreneurship and Small Business Project Workbook

Fill-in-the-Blanks Session 1Instructions: While watching Session 1, fill in the missing words according to the information presented by the instructor. [References where answers are found are in brackets.]

The Entrepreneur

1. There is no single set of characteristics that all entrepreneurs exhibit; however, there are many which are common . [Characteristics of the Entrepreneur]

2. Patience in the face of ambiguity or when success is elusive is a valuable trait. [Characteristics of the Entrepreneur]

3. Creativity allows an entrepreneur to see or approach new ideas or conflicts in ways others do not. [Characteristics of the Entrepreneur]

4. A good assessment will help define three things: your strengths , your weaknesses , and

your tolerance for risk. [Self-Assessments]

5. Results of a personality assessment can identify strengths and weaknesses of the entrepreneur’s leadership style. [Self-Assessments]

6. After receiving the results of a self-assessment, an entrepreneur discovers she has a very low risk tolerance. With this

knowledge, she decides to purchase an existing and successful business. [Self-Assessments]

7. Networking is a key skill an entrepreneur can use to further their goals. [Business Opportunities]

8. Attending or participating in an industry-specific trade show is a great way to share information with others in your industry. [Business Opportunities]

9. Any entrepreneurial venture has opportunities , drawbacks, benefits , challenges, rewards , and risks. [Risks/Benefits of Being an Entrepreneur]

10. Many entrepreneurs face the risk of working long hours . [Risks/Benefits of Being an Entrepreneur]

11. Potential for greater earnings is often a reason entrepreneurs start a business and strive for its success. [Risks/Benefits of Being an Entrepreneur]


CharacteristicsUnderstanding characteristics common to entrepreneurs can help you determine if starting or owning your own business is right for you.

Purpose:After completing this project, you will have a better understanding of the entrepreneurial characteristics you possess and how those characteristics might benefit you as an entrepreneur.

Steps for Completion:1. Review, if necessary, the characteristics found in the video, Characteristics of the

Entrepreneur (approximately 3 minutes).

2. Consider which of those characteristics you might possess.

3. Write, in the space below, five characteristics and explain in a short paragraph why those characteristics would be important to you as an entrepreneur.

4. Consider any other characteristics you might possess that were not discussed in the video. Add them to your list and explain why you feel these would benefit you as an entrepreneur.

Project Details

Project File:N/A

Estimated Completion Time:

10-15 minutes

Video Reference: Session 1

Topic: The EntrepreneurSubtopic: Characteristics of the Entrepreneur

Objectives Covered:1.0 The Entrepreneur

1.1 Identify the characteristics entrepreneurs have

Note to Teachers:Students’ answers will vary widely, but it is important that they make this personal. They may choose from any characteristics defined in the course, but their reasons for choosing those characteristics shouldn’t just be a recitation of the definitions found in the course.

Possible answers may include:

ResponsibleOrganizedCourageousSelf-reliantConfidentDetermined/Committed/DedicatedEnthusiasticImmediate feedbackFuture-orientedValues achievementPatientFlexible/AdaptableCreativeResourcefulHard working/Tenacious


Self-AssessmentA good self-assessment can be a valuable tool to help identify an appropriate path of entrepreneurship.

Purpose:After completing this project, you will know the three primary categories of a good self-assessment and how the results of an assessment can benefit you as an entrepreneur.

Steps for Completion:1. Review, if necessary, the video, Self-Assessments (approximately 3 minutes).

2. Write the three categories of a good self-assessment.

3. Consider what qualities you possess that may fall into the various categories.

4. Without taking an assessment, write (in the space below) at least two personal statements per category describing a quality you possess that applies to the category and how knowing these qualities may lead you to action.

Project Details

Project File:N/A


10-15 minutes


Topic: The EntrepreneurSubtopic: Self-Assessments


1.2 Given a scenario including a self-assessment outcome, identify the strengths, weaknesses, and risk tolerance the self-assessment identifies and how to compensate with services

Note to Teachers:There are many assessments available and you may choose to have your students take an assessment prior to completing this project.

Self-assessment results fall into three primary categories: strengths, weaknesses, and risk tolerance.

Possible strengths may include:Excellent leadership skills, good with people, expertise, experience handling money, good connections within industry.

Possible weaknesses may include:Lack of knowledge in various aspects of running a business (accounting, inventory management, scheduling, etc.), uncomfortable around people, no industry connections.

Risk tolerance is often measured on a scale: low, medium, high.Low risk tolerance indicates that an individual would prefer to play it safe.Medium risk tolerance indicates that an individual is willing to take some risks, financial or otherwise, but would still prefer to maintain some control.High risk tolerance indicates that an individual is comfortable jumping in with both feet and is willing to take considerable risk to ensure success of their venture.


Risks and BenefitsAny entrepreneurial venture carries both benefits and risks. As an entrepreneur, it is your responsibility to weigh whether or not they are worth it.

Purpose:After completing this project, you better understand what you consider as risks or benefits to being an entrepreneur.

Steps for Completion:1. Review, if necessary, the video, Risks/Benefits of Being an Entrepreneur

(approximately 8:45 minutes).

2. Consider what you think are the risks and benefits of being an entrepreneur.

3. Write, in the space below, three risks and three benefits to being an entrepreneur and include a statement as to why you feel the way you do.

Project Details

Project File:N/A


10-15 minutes


Topic: The EntrepreneurSubtopic: Risks/Benefits of Being an Entrepreneur


1.4 Identify the risks, benefits, opportunities, and drawbacks of being an entrepreneur

Note to Teachers:Students’ answers will vary widely, but it is important that they make this personal. They may list risks or benefits found in the course or they may have other ideas. Why they might list a risk or benefit is the important aspect of this project.

Possible benefits may include:Control over schedule, working your own way/being your own boss, earning potential, personal satisfaction.

Risks may include:Financial ruin/instability, tax burden, long hours, business failure, loss of reputation (as a result of business failure).


Session 2



Opportunity Recognition

1. Buying a franchise gives you brand recognition but carries royalty fees with it. [Types of Opportunities]

2. An existing business comes with preexisting customers , but it can be very expensive. [Types of Opportunities]

3. A franchise comes with a proven business model , it is easier to finance, and is exclusive within a geographic area. [Types of Opportunities]

4. Starting your own business allows you to create your own rules ; however, it comes with the greater

probability of failure . [Types of Opportunities]

5. A master plumber needs to determine if the demand for his services will be sufficient in a new town. The plumber needs to

research the competition he might face and if customers are spending money for plumbing. [Demand]

6. Stacey surveyed 100 potential customers who would be willing to purchase custom greeting cards, wedding announcements, business cards, and other items from her home. Forty-five percent of customers would prefer ordering from a business

website. Given this information, starting an online business would offer her the best chance for success. [Demand]

7. Demographics are statistics about people and groups. [Customers]

8. Homeowners in older neighborhoods would fall under the geographic segmentation method. [Customers]

9. The key components of a value proposition include, who you are, what you do, and how you are different . [Value Proposition]


Opportunity TypesThere are three different opportunities to starting a business: buying a franchise, starting your own business, or buying an existing business. Each opportunity comes with its own benefits and drawbacks. It is your job to know each benefit and drawback to each business opportunity.

Purpose:After completing this project, you will know the benefits and drawbacks of each business opportunity.

Steps for Completion:1. Review, if necessary, the videos under, Types of Opportunities (approximately 4

minutes).

2. Write, in the space below, each type of business opportunity.

3. Identify and write down at least one benefit and one drawback to each business opportunity.

Project Details

Project File:N/A


5-10 minutes


Topic: Opportunity RecognitionSubtopic: Types of Opportunities

Objectives Covered:2.0 Opportunity Recognition

2.1 Identify the benefits and drawbacks of different types of opportunities (e.g. start a new business, buy an existing business, and buy a franchise)

Note to Teachers:The benefits and drawbacks are listed in the video references.

Opportunities: Buy a franchise, Start your own business, Buy an existing business

Benefits: Franchise: Brand recognition, Proven business model, Easier to finance, Exclusive within a geographic area, Marketing assistanceStart your own business: Build your own way, Create your own rulesBuy an existing business: Pre-existing customers

Drawbacks:Franchise: Royalty feesStart your own business: Risky, Greater probability of failureBuy an existing business: Expensive


Project Details

Project File:N/A


5-10 minutes


Topic: Opportunity RecognitionSubtopic: Demand


2.2 Given a scenario, analyze the demand for the good or service and opportunities in an environment

Note to Teachers:The demands for services can be found in the scenarios in the video references.

Demand for ServicesBecoming a successful business owner hinges on understanding and utilizing the demand for services your business provides.

Purpose:After completing this project, you will learn more about the demands for services a business can provide and why it is important to utilize them.

Steps for Completion:1. Review, if necessary, the videos under, Demand (approximately 9:00 minutes).

2. In the space below, write down at least four types of demands for services you are likely to run into when running a business.

Possible Demands:Determining the need for your business in an areaFiguring out the number of competitors in an areaFinding out the spending patterns of potential customers in an areaDeciding which business venture works best for your company’s growthWhether to start an online-only business or notResearch business optionsUtilizing resources carefully and efficiently


Project Details

Project File:N/A


5-10 minutes

Video Reference: Session 2:

Topic: Opportunity RecognitionSubtopic: Customers


2.3 Given a scenario, identify the customers or potential customers for a business

Note to Teachers: The scenarios in the video references provide answers to the project.

Potential CustomersWithout customers, a business is dead in the water. Understanding how to find potential customers and keep them is a vital skill for any business owner.

Purpose:After completing this project, you will identify how to reach out to potential customers using segmentation methods.

Steps for Completion:1. Review, if necessary, the videos under, Customers (approximately 5:00 minutes).

2. Write, in the space below, the four different segmentation methods.

3. Identify and write down at least one customer or group of customers for each segmentation method.

Segmentation Methods:Behavioral, Geographic, Demographic, Psychographic

Possible customers for each segmentation method:Behavioral: Customers who will not pay high prices, Customers who are looking for promotions and discountsGeographic: Customers who live near a company, Customers in older neighborhoodsDemographic: Customers with higher incomesPsychographic: Customers with busy lifestyles, Customers who like modern décor and conveniences


Project Details

Project File:N/A


5-10 minutes


Topic: Opportunity RecognitionSubtopic: Value Proposition


2.4 Given a scenario, recognize a value proposition

Note to Teachers:The answers can be found in the video reference at 00:44 seconds.

Value PropositionsA value proposition helps a business provide customers with an idea of who they are, what they do, and how they are different from the competition.

Purpose:After completing this project, you will know how to recognize a value proposition.

Steps for Completion1. Review, if necessary, the video, Value Proposition (approximately 2:45 minutes).

2. Write, in the space below, three items that should be included in a value proposition designed for potential investors.

Value Proposition Elements:Business overview, Services offered to customers, Differences from competitors


Session 3



Starting a Business

1. The three C’s that should be addressed in any business plan are your concept , your customers , and your capital . [Business Plan]

2. A business plan is written to directly target investors and provide direction to the business owner . [Business Plan]

3. Target markets should be addressed in the description section of a business plan. [Business Plan]

4. Sole proprietorships aren’t double-taxed and are easy to create; however, they do not

shield the proprietor from any liability . [Legal Structures]

5. C Corporations are best for international businesses. [Legal Structures]

6. Limited Liability Companies are the best option for a single owner desiring low risk. [Legal Structures]

7. An entrepreneur estimates she will have of $7,000 of income per month and $3,500 in expenses which yields a debt ratio of 50%. [Getting Started]

8. An entrepreneur believes he can turn an old home into a country store. Because the building is an existing home and is

likely zoned residential, he would need to obtain a zoning variance to convert it to a commercial space. [Licenses and Regulations]

9. An entrepreneur started a business with a $500 loan. The future value of the loan (at 5% after 2 years) is $551.25. The value

for this loan was calculated using compound interest. [Start-Up Funding]

10. Cash is government-backed currency. [Start-Up Funding]

11. Checks are a written note instructing a dispersal of funds. [Start-Up Funding]

12. A debit card is an electronic deduction of funds. [Start-Up Funding]

13. A line of credit is a loan to purchase now and pay later. [Start-Up Funding]

14. Angel investors influence business management as well as share in the profits . [Start-Up Funding]

15. Starting a business doesn’t have to be a solo venture; there are many agencies at the local, state, and federal level designed to help a business owner. [Support]

16. The Small Business Administration specializes in getting small business owners the help they need to get their business up and running. [Support]

17. Two aspects of starting a business that might be overlooked are the ethics and social responsibilities of the new business owner. [Ethics and Social Responsibility]


18. There are many reasons to be ethical in your business practices; from a legal point of view, it is to avoid potential lawsuits . [Ethics and Social Responsibility]

19. Ownership transfer to those already operating the business is a management buyout . [Exit Strategies]

20. Division of ownership of a privately held company into public shares is initial public offering . [Exit Strategies]

21. Transfer of ownership for cash is harvesting . [Exit Strategies]


Project Details

Project File:N/A


5-10 minutes


Topic: Starting a BusinessSubtopic: Business Plan

Objectives Covered:3.0 Starting a Business

3.1 Identify the purposes and value of a business plan

Note to Teachers:This project is designed to have students come up with a quick presentation in very little time—the purpose being to generate a specific idea to gain investor interest without additional clutter. This exercise is valuable for entrepreneurs to hone the elevator pitch for their business venture.

Business Plan – Oral PresentationThe oral presentation portion of a business plan is designed to be the hook that grabs the attention and interest of potential investors.

Purpose:After completing this project, you will have had an opportunity to create and share a short oral presentation for your potential investors.

Steps for Completion:1. Consider what type of business you may want to start or purchase.

2. Spend five minutes writing, in the space provided, a one minute oral presentation for potential investors.

3. Share your presentation in a small group (3-5 people).

Students may address a need that their business fills, pitch a new product that will appeal to the masses, or state the case for opening a franchised business. Whatever their choice of business, the presentation should state why their idea is needed and the benefit to the investors and community.

You may want to remind your students that one minute is longer than they think it is.

This short presentation is ultimately the hook that the student would use to pique investor interest. To take the project a step further, have the students shorten the presentation. Can they make an effective presentation in 30 seconds? Ten seconds? One sentence?


Project Details

Project File:N/A


5-10 minutes


Topic: Starting a BusinessSubtopic: Legal Structures


3.2 Identify the appropriate legal structure, benefits and drawbacks for different legal structures for a business

Note to Teachers:There is no right or wrong answer, however, there is probably a better answer. Be sure your student is considering as many factors as possible in choosing the legal structure for their business.

Legal StructuresKnowing which legal structure to use when setting up a new business can help get the business off the ground and running right.

Purpose:After completing this project, you will have a better understanding of the type of legal structure that might be best for your new business.

Steps for Completion:1. Consider what type of business you may want to start.

2. Review, if necessary, the video, Legal Structures (approximately 2:30 minutes).

3. In the space provided, write the type of legal structure you would choose for your new business.

4. Write at least two sentences explaining the reasoning behind your choice.

Legal structures your students may choose and their advantages and disadvantages include:

1. Sole proprietorship - easy to create, but have unlimited liability2. General or limited partnership - disperses financial responsibility, dissolves upon the death of a partner 3. C corporation - best for international businesses, limited liability, double-taxed, requires an attorney to create4. S corporation - low tax rate, cannot exceed 100 shareholders 5. Nonprofit corporation - not owned by anyone, do not pay U.S. federal taxes, organization must be devoted to specific pursuits6. Limited liability corporation - excellent single-owner option, shields owner from liability, requires self-employment tax


Project Details

Project File:N/A


5-10 minutes


Topic: Starting a BusinessSubtopic: Getting Started


3.3 Given a scenario, calculate the amount of money (cash and credit) needed to start a business

Note to Teachers:The sample numbers below assume that the entrepreneur is seeking to finance their entire venture.

Start-Up CashKnowing how much money is required to start a business and keep it going until it can cover its own expenses is a vital part of preparing to begin a business venture.

Purpose:After completing this project, you will know how to determine the amount of capital required to start a business.

Steps for Completion:1. Consider what type of business you may want to start.

2. Review, if necessary, the video, Getting Started (approximately 4:15 minutes).

3. Use the Expenses and Loan Qualification tables below to determine how much capital you would need to start your business. Assume that it will generate enough money to cover expenses after two months.

Expenses Table

Enter cost per month for each item

Keep in mind that this is the total for one month of operation. If your business will take several months to generate enough to cover expenses you will need to multiply your total by the number of months to correctly figure your start-up expenditures. For this project, we’re calculating two months to generate enough to cover expenses so we will multiply our total by 2.

Loan Qualification Table

Rent $1,200

Utilities $250

Payroll $4,800

Insurance $700

Materials/Supplies $900

Other

Total $7,850

Enter the estimated start-up expenditures: $15,700 (A)

Calculate the contingency amount (10% of A) $1,570 (B)

Total start-up capital (A + B) $17,270 (C)

Required cash reserve (50% of C) $8,635 (D)

Total Financing Required (C + D) $25,905


Project Details

Project File:N/A


5-10 minutes


Topic: Starting a BusinessSubtopic: Start-Up Funding


3.5 Identify the benefits and drawbacks of various sources of start-up funding: equity (friends/family, angels, venture), debt (bank, credit cards, personal loans), and grants (government, foundation, corporate)

Note to Teachers:You may consider having your students alter the values to show how compound interest can affect the overall loan value.

Compound InterestKnowing how to calculate interest payments can help you determine what type of loan might be best for your new business.

Purpose:After completing this project, you will understand how compound interest can affect your overall loan payments.

Steps for Completion:1. Review, if necessary, the first minute of the video, Start-Up Funding.

2. Assume you have a $13,500 loan with a 7% interest rate and a term of 4 years.

3. In the space provided, calculate the future value of the loan if the loan isn’t paid until the end of the 4-year term.

First year interest accrued: $13,500 x .07 = $945 $13,500 + $945 = $14,445

Second year interest accrued: $14,445 x .07 = $1,011.15 $14,445 + $1,011.15 = $15,456.15

Third year interest accrued: $15,456.15 x .07 = $1,081.93 $15,456.15 + $1,081.93 = $16,538.08

Fourth year interest accrued: $16,538.08 x .07 = $1,157.67 $16,538.08 + $1,157.67 = $17,695.75

Future loan value after 4-year term: $17,695.75


Project Details

Project File:N/A


5-10 minutes


Topic: Starting a BusinessSubtopic: Ethics and Social Responsibility


3.7 Identify the ethical practices and social responsibilities of a business

Note to Teachers:Students’ answers will vary widely. It is important, however, that they connect the notion of building trust to a successful business. Look for the ways they make that connection in their responses.

EthicsThe social responsibilities and ethics of the new business owner can often get overlooked. The act of getting prepared to open a new business is filled with so many details that ethics aren’t often considered until something happens that requires the business owner to examine the behaviors of the business.

Purpose:After completing this project, you will understand how considering ethical behavior while planning a business can help the business begin on the right footing.

Steps for Completion:1. Consider the type of business you may want to start or purchase.

2. In the space provided, write a short paragraph detailing how you would generate and maintain trust with your customer base.

3. In the space provided, write a short paragraph about how this might affect a business plan—whether it is your operational plan or an oral presentation you might give to investors.

Students may include the following in their answers:

Offer money-back guaranteesOffer warranties Build personal relationships with customersCreate an employee integrity planAttend community eventsVolunteer for service as a businessStand by the product or service offered


Session 4



Business Operations

1. Jeremy needs to hire someone who is dependable and can work independently. Given this information, he needs someone

whose performance can be assessed. [Personnel]

2. A local non-profit arts organization is looking for a director. The organization needs to hire someone with ten years of experience from a similar arts organization. Given this information, the organization needs to determine if they can

afford an attractive salary that will attract a qualified candidate. [Personnel]

3. A skin-care company provides office space, marketing materials, and mentoring. Given this information, the company should

outsource Internet services. [Division of Labor]

4. Jason’s training company employs 45 people and his accounting department has recommended outsourcing payroll and payroll

related functions. Given this information, administration of benefits should also be outsourced. [Division of Labor]

5. The company and the shareholders both pay taxes in a C corporation structure. [Taxes]

6. A sole proprietorship business is subject to the self-employment tax. [Taxes]

7. Images and other works are under copyright protections at the moment of their creation and may not be used without permission. [Intellectual Property]

8. Jade’s new logo for her café’s custom-blended coffee brand would fall under trademark . [Intellectual Property]

9. Chad is dividing the responsibility he currently has with another person, which means he is implementing a separation of duties standard operating procedure. [Standard Operating Procedures]

10. JD’s pizza place has a head cook with several assistants. Each assistant manages various aspects of the kitchen, but the head cook has taught each of them to prepare each of the dishes in exactly the same way. This is an example of the

cross-training standard operating procedure. [Standard Operating Procedures]

11. Jade’s café creates unique coffee blends, but the supply chain of her base coffee beans is slow. Given this information, Jade

should focus on the supply chain between her café and the base coffee bean suppliers . [Supply Chain]

12. Damon wants to increase the sustainability of his photography business. Damon should offer a punch card in order to provide customers with a direct incentive to return. [Sustainability]

13. An investor of Michael’s landscape business is concerned that the business is not growing as quickly as he believes it should.

Michael should show the investor the number of new customers to demonstrate the growth of the business. [Growth Milestones]

14. Tad, Alex, and Melissa are partners in a small app development company. Sales would be the best way to track the company’s first year growth. [Growth Milestones]


Project Details

Project File:N/A


5-10 minutes


Topic: Business OperationsSubtopic: Personnel; Division of Labor

Objectives Covered:4.0 Business Operations

4.1 Given a scenario, identify key positions and human capital needs (including compensation and benefits)4.2 Given a scenario, determine whether work can be completed by the owner or whether employees or service providers are needed

Note to Teachers: The four steps of the hiring process can be found in the Personnel video at 3:10.

Capital Needs and Division of LaborA business needs personnel as it grows and this leads to a division of labor. As a business owner, you need to know how to deal with capital needs and the division of labor that follows.

Purpose:After completing this project, you will know how to handle personnel growth and division of labor.

Steps for Completion:1. Review, if necessary, the videos, Personnel, and, Division of Labor (approximately

5:50 minutes).

2. In the correct order, write the four steps of the hiring process in the space below.

3. Write down at least two items that are commonly outsourced as a company grows.

Steps of the Hiring Process:1: Identify the skills required for the position2: Create a job description that includes requirements for the position3: Place an ad in places that will attract qualified candidates4: Review applications and interview to assess the most qualified candidate

Commonly Outsourced Items:Internet services, Administration of benefits, Marketing, Payroll services, Public relations


Project Details

Project File:N/A


5-10 minutes


Topic: Business OperationsSubtopic: Taxes


4.3 Given a scenario, identify the taxes that are required

Note to Teachers:The answers needed for step two are found in the video, Taxes.

Required TaxesA company pays taxes depending on the structure that was used to build it. It is important to know what taxes are due depending on the company’s corporate structure.

Purpose:After completing this project, you will know how to identify the tax implications for various corporate structures.

Steps for Completion:1. Review, if necessary, the video, Taxes (approximately 2:00 minutes).

2. Write, in the space below, the tax implications for a C corporation and a sole proprietorship.

Tax Implications:C Corporation: The company and the shareholders both pay taxesSole Proprietorship: The business owner pays taxes on all the income earned from their business


Project Details

Project File:N/A


5-10 minutes


Topic: Business OperationsSubtopic: Intellectual Property


4.4 Given a scenario, identify intellectual property issues of trademarks, copyrights and patents

Note to Teachers: There are several examples of intellectual property in the video, Intellectual Property.

Intellectual PropertyIntellectual property can be broken down into four items: patents, copyrights, trademarks, and trade secrets. As a business owner, you will likely deal with at least one, if not all of these items.

Purpose:After completing this project, you will know how to identify the different types of intellectual properties.

Steps for Completion:1. Review, if necessary, the video, Intellectual Property (approximately 3:00 minutes).

2. Write, in the space below, the four types of intellectual property.

3. Include at least one example of each intellectual property type.

Types of Intellectual Property:Patent, Copyright, Trademark, Trade Secret

Intellectual Property Examples:Patent: A new type of milk steamerCopyright: Photographs of a product for use on a websiteTrademark: A logo for a brandTrade Secret: A unique recipe or production method


Project Details

Project File:N/A


5-10 minutes


Topic: Business OperationsSubtopic: Standard Operating Procedures


4.5 Given a scenario, identify standard operating procedures (e.g., setup, conduct, internal controls, separation of duties)

Note to Teachers: The students can draw their scenarios from any influence, but can feel free to use the scenarios outlined in the video, Standard Operating Procedures.

SOPsSOPs or standard operating procedures are what business owners use in order to manage the day-to-day activity in their companies.

Purpose:After completing this project, you will know how to identify various SOPs.

Steps for Completion:1. Review, if necessary, the video, Standard Operating Procedures (approximately 2:15

minutes).

2. In the space below, write a scenario where the owner implements a cross-training SOP.

3. Write an additional scenario where the owner utilizes a separation of duties SOP.

Cross-Training Scenario Example:JD’s Pizza Place has a head cook with several assistants. Each assistant handles various aspects of the kitchen, but the head cook has taught each assistant how to prepare all of the dishes in exactly the same way.

Separation of Duties Example:As his company grows and expands, Chad needs to hire a business manager to handle all the record keeping, scheduling, and bills. Chad will still handle payment authorization, check signing, and working with customers and other employees.


Project Details

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5-10 minutes


Topic: Business OperationsSubtopic: Supply Chain


4.6 Given a scenario, identify a supply chain (e.g. clear commitments, active communication, negotiated costs)

Note to Teachers: The students can draw their scenarios from any influence, but can feel free to use the scenarios outlined in the video, Supply Chain.

Supply ChainThe supply chain is the line between a raw goods supplier and a business. A good business owner looks for opportunities to increase the efficiency of their supply chain.

Purpose:After completing this project, you will understand supply chains.

Steps for Completion:1. Review, if necessary, the video, Supply Chain (approximately 3:10 minutes).

2. In the space below, write a scenario where the owner needs to implement negotiated costs with a supplier.

Negotiated Costs Supply Chain Example:Nichole has created a new cake decorating device. She finds a manufacturer who is willing to produce the device so Nichole can sell it. The device is a huge success. After four months, Nichole places another order with the manufacturer, but is told that due to an increase in production costs, she will have to pay triple the cost of her previous orders. Because of this, Nichole needs to negotiate costs within her supply chain, specifically with her manufacturer.


Project Details

Project File:N/A


5-10 minutes


Topic: Business OperationsSubtopic: Sustainability; Growth Milestones


4.7 Given a scenario, identify the factors that lead to sustainability4.8 Given a scenario, identify milestones as part of a growth strategy

Note to Teachers: The students can draw their scenarios from any influence, but can feel free to use the scenarios outlined in the videos, Sustainability, and, Growth Milestones.

Growth and SustainabilityA company’s growth is of great importance to a business owner as is its sustainability. A business owner can use milestones to mark growth in a company to stay motivated, while sustainability can be achieved by being flexible with customers and suppliers.

Purpose:After completing this project, you will understand growth in a company and sustainability.

Steps for Completion:1. Review, if necessary, the videos, Sustainability, and, Growth Milestones

(approximately 5:00 minutes).

2. In the space below, write a scenario where the owner needs to help an investor see how fast their company is growing.

3. Write an additional scenario where the owner needs to adjust to his clientele due to changes in the environment.

Investor Scenario Example:Michael recently started a landscaping business and one of his investors has expressed concern that the business is not growing as quickly as he believes it should. Michael decides to use a milestone to help console the concerned investor. He shows the investor the list and number of new customers the company has gained since the company opened.

Clientele Scenario Example:The Johnson family owns a feed store that caters to the local ranchers in the area. Sales have been steadily declining as ranch properties have been sold and carved into smaller housing slots. In order to increase the sustainability of their business, the Johnson family decides to add a line of products to the store which cater to traditional house pets.


Session 5



Marketing and Sales

1. The correct order of the sales process is: first, we need to obtain a list of potential customers . Second, we

need to determine, through research, which potential customers to target . Third, we need to contact the potential customers. Fourth, we close the sale; and fifth, we complete

the transaction . [Successful Sales]

2. The correct order to secure a sale is: first, Eli needs to determine if the customer needs his service.

Second, he needs to consult with the customer. Third, he needs to convince the

customer to use his services while keeping step four, offering an incentive in his pocket to help close the

deal. Finally, Eli needs to ask for referrals . [Successful Sales]

3. Employees from nearby businesses are more likely to frequent the taco truck and will be more aware of changes to the menu than tourists. [Finding Customers]

4. The block of retail businesses will pay quarterly, so 4 times in the next year for a total of $8,000 . The

condo complex will pay weekly; with 52 weeks in a year that equals a total of $9,100 . The apartment

complex pays monthly, so 12 times $500 yields $6,000 . Finally, the office suite pays $1,500 x 5 suites

annually for a total of $7,500 . [Finding Customers]

5. Successful entrepreneurs are not only able to attract customers, but they are able to retain and build a

base of customers as well as developing relationships with repeat customers. [Retaining Customers]

6. Lowering prices might bring return customers, but at potential cost . [Retaining Customers]

7. So, in this instance, email is cost effective, but ignored, and social media is inexpensive, but requires a continual presence. [Communication]

8. So, Chris’ best option to reach the largest number of potential customers is to advertise his promotions

on television . [Communication]


Project Details

Project File:N/A


10-15 minutes


Topic: Marketing and SalesSubtopic: Successful Sales

Objectives Covered:5.0 Marketing and Sales

5.1 Given a scenario, develop a sales strategy and identify characteristics of a successful sale

Note to Teachers: Students may draw from personal experiences, or future plans, to complete this project.

Successful Sales ProcessThe correct order of the sales process includes, first, obtaining a list of potential customers; second, determining, through research, which potential customers to target; third, contacting the potential customers; fourth, closing the sale; and fifth, completing the transaction.

Purpose:After completing this project, you will know how to apply the sales process to a business to make it successful.

Steps for Completion:1. Study and understand the five steps of the successful sales process.

2. In the space below, write a scenario in which each of the five steps are utilized in a business venture.

Answers must include all five steps of the sales process

1) Obtaining a list of potential customers2) Determining which potential customers to target3) Contacting the potential customers4) Closing the sale5) Completing the transaction


Project Details

Project File:N/A


10-15 minutes


Topic: Marketing and SalesSubtopic: Finding Customers


5.2 Given a scenario, identify and analyze the cost/benefits of finding customers

Note to Teachers: The most correct answer in this situation is local rec centers on a tight budget. You may grade this assignment either on correctness or proof of critical thinking.

Finding CustomersWhen it comes to starting and running a business operation, it is important to know your audience. You need to know who your customers are and how to best find, and keep, their business. Utilize critical thinking skills to best determine the correct answer for the following situation.

Purpose:After completing this project, you will know how to determine which customers will be attracted to the following scenario.

Steps for Completion:1. Read this scenario: Tom’s Sporting Goods is having an end-of-summer sale. The

following are his customers: local rec centers on a tight budget, surrounding businesses, winter sports teams, and touring summer sports teams.

2. Determine which customers are most likely going to buy on-sale sporting goods from Tom.

3. In the space below, write a paragraph describing why you chose the customers you did, and why the other customers are unlikely to buy the on-sale sporting goods.


Local rec centers on a tight budget are most likely going to buy on-sale sporting goods from Tom because they are close by, are probably familiar with his business, and if they need to buy sporting goods with limited funds, they are likely to purchase those goods while they are on sale. Not all surrounding businesses will need sporting goods, even if they are on sale. Winter sports teams are probably not going to need summer sports equipment and touring summer sports teams may notice that the sale is going on, but they probably have all the equipment they need, or they are loyal customers to one of their own local sports stores.


Project Details

Project File:N/A


10-15 minutes


Topic: Marketing and SalesSubtopic: Retaining Customers


5.3 Given a scenario, identify how to retain customers and develop a relationship with repeat customers

Note to Teachers: The most correct answer in this situation is discounted rates on crafting classes to those who subscribe to Jen’s newsletter. You may grade this assignment either on correctness or proof of critical thinking.

Retaining CustomersWhen it comes to starting and running a business operation, it is important to know your audience. You need to know who your customers are and how to best find, and keep, their business. Utilize critical thinking skills to best determine the correct answer for the following situation.

Purpose:After completing this project, you will know how to determine the best way to attract repeat customers in the following scenario.

Steps for Completion:1. Read this scenario: Jen owns a successful craft store, but she is looking to increase

business. Her advertising ideas include: increased sales on popular items, social media advertising, discounted rates on crafting classes to those who subscribe to Jen’s newsletter, advertisements in the local craft magazine.

2. Determine which method of advertising is best for attracting repeat customers to Jen’s craft store.

3. In the space below, write a paragraph describing why you chose the method of advertising you did, and why the other methods are less effective.


The method of advertising that is best for attracting repeat customers to Jen’s craft store is offering discounted rates on crafting classes to those who subscribe to Jen’s newsletter because they have already been there and they will want to come back if the crafting class they’re interested in is less expensive. Increased sales on popular items may entice customers to return, but at a cost. Social media advertising may bring in new customers, but not necessarily returning ones. In addition, social media must be maintained often, or it’s not very effective. Advertisements in the local craft magazine, again, may attract new customers, but not necessarily returning ones.


Project Details

Project File:N/A


10-15 minutes


Topic: Marketing and SalesSubtopic: Communication


5.4 Given a scenario, determine value and methods of communication including: websites, brochures, social media, and advertising

Note to Teachers: A few good examples of correct answers are mentioned in the course video file.

Communication Through Marketing It is important that you understand different ways to communicate in the business world. One such way is through marketing, which is the communication from a business to its consumers. You will need to understand the different marketing types available, as well as when they should be used to best suit a business’s needs.

Purpose:After completing this project, you will know how to determine the best marketing type for a business situation through understanding benefits and drawbacks of that marketing type.

Steps for Completion:1. Read this list of marketing types: newspaper, television, email, web banners, social

media.

2. In the space below, write two paragraphs: one describing the pros and one describing the cons of each of the listed marketing types.


The pro of newspaper is that it reaches the local community. The pro of television is that it has high impact. The pro of email is that it is cost effective. The pro of web banners is that they are inexpensive. The pro of social media is that it is inexpensive.

The con of newspaper is that it has a shrinking base, especially in the youth demographic. The con of television is that it is expensive. The con of email is that it is easily ignored. The con of web banners is that space is limited. The con of social media is that it requires ongoing presence.


Session 6



Financial Management

1. On the asset side, we have inventory as our current asset and equipment as the long-term asset. [Financial Statements]

2. Labor falls into the cost of goods sold category, as do materials . [Financial Statements]

3. Remember, credit scores are affected by payment histories, amounts owed on accounts , how long an individual has had credit, how many accounts an individual opens, and what types of

credit an individual has. [Credit Ratings]

4. Therefore, the best answer is that the inventory loan would have collateral , the new ATV/OHVs purchased for inventory, while the operating loan would not. [Credit Ratings]

5. A weekly newspaper ad and a monthly lease fee for a credit card machine are both fixed costs . [Expenses]

6. Material will vary from job-to-job, so that is a variable expense . [Expenses]

7. Due to the changing rates his company is charged for water and sewer, Jason is concerned about variable costs . [Pricing]

8. Increased labor cost is certainly a contributing factor as Marci now must pay some of her employees a higher wage. [Pricing]

9. We have two possible answers based on the numbers in the scenario, but the question wants to know how much simple interest is due, $504, and not the total amount due at the end of the term. [Analyze Cash Flow]

10. To determine the ending inventory value, we first need to determine the total inventory value—Xander started with $40,800. [Analyze Cash Flow]

11. The ending cash balance is the available cash , $8,925, minus the cash outflow , $4,945, which equals $3,980. [Cash Flow Budget]

12. Remember to keep in mind all of the expenses and revenues when creating your cash flow budgets. It is easy to forget the previous month’s ending cash balance when it is given before the rest of the expense or revenue data. [Cash Flow Budget]

13. First, add the fixed costs of rent, utilities, Internet, wages, insurance, and equipment for a total of $117,500. [Break Even]

14. Then calculate the variable costs ; dough, meat/cheese/sauce, and toppings for a total of $5.50. [Break Even]


Project Details

Project File:N/A


5-15 minutes


Topic: Financial ManagementSubtopic: Financial Statements

Objectives Covered:6.0 Financial Management

6.1 Given a scenario, interpret basic financial statements such as income statements and balance sheets

Note to Teachers: The correct answers are listed in the course video file.

Financial CategoriesIt is important to know and understand financial statements and the categories that different types of assets and liabilities fall under. You will also need to know how to read and interpret financial statements, and calculate net sales, as well as other recorded financial information.

Purpose:After completing this project, you will know how to determine which assets and liabilities fall under specific category types.

Steps for Completion:1. Read the following list of categories: current assets; long-term assets; current

liabilities; long-term liabilities. Read the following list of assets and liabilities: bank loans; equipment; inventory; mortgage payments.

2. Determine which assets and liabilities belong to the listed categories.

3. In the space below, write your answers, explaining why each asset and liability should belong to its category.

Answers may include:Inventory; Current assetsEquipment; Long-term assetsBank loans; Current liabilitiesMortgage payments; Long-term liabilities


Project Details

Project File:N/A


5-15 minutes


Topic: Financial ManagementSubtopic: Credit Ratings


6.2 Given a scenario, identify the factors that influence credit ratings and the importance of a positive credit rating

Note to Teachers: The most correct answer in this situation is Paul’s studio has been in operation for six months. You may grade this assignment either on correctness or proof of critical thinking.

Credit RatingsCredit scores are affected by payment histories, amounts owed on accounts, how long an individual has had credit, how many accounts an individual has open, and what types of credit an individual has. Knowing this information will help you in determining credit ratings and the factors that influence loan applications.

Purpose:After completing this project, you will know how to determine whether a loan will be approved for a business.

Steps for Completion:1. Read this scenario: Paul owns a photography studio, and he has applied for a loan to

purchase a larger space so he can show his, and other local photographers’, work. As part of the loan process, the bank reviews Paul’s credit history, which reveals that Paul’s studio has been in operation for six months, Paul has an active loan on some photography equipment for $8,000, Paul has a credit score of 650, and the studio turns a decent profit. Given all this information, Paul’s loan is denied.

2. Determine which item from Paul’s credit history caused the denial.

3. In the space below, write a paragraph describing why you chose the credit item you did, and why the other items are less likely to cause a loan denial.


The fact that Paul’s studio has been in operation for six months caused the loan denial because that is not a long enough period to receive approval for most business loans. Paul has an active loan on some photography equipment for $8,000, which is fine, but we don’t know enough about this loan to help us know whether it dings his credit. Paul’s credit score of 650 is not great, but we don’t know enough about what the bank is looking for in their application process to disqualify him for this reason. And the fact that the studio turns a decent profit does not hurt Paul in the process.


Project Details

Project File:N/A


5-15 minutes


Topic: Financial ManagementSubtopic: Expenses


6.3 Given a list of expenses, identify which are fixed versus variable

Note to Teachers: The most correct answers in this situation are: facility mortgage (fixed); salaried employee wages (fixed); gasoline for field engineer trucks (variable); maintenance for testing equipment (variable). You may grade this assignment either on correctness or proof of critical thinking.

Fixed and Variable ExpensesWhen managing business finances, it is important to know and keep in mind your fixed and variable expenses. Fixed expenses are those that are predictable because they don’t change very often, such as a monthly car payment. Variable expenses are those that depend on use or quantity, which often changes, such as monthly utility bills.

Purpose:After completing this project, you will know how to determine whether an expense is fixed or variable.

Steps for Completion:1. Read this scenario: John runs a successful engineering and structural testing facility.

His company expenses include facility mortgage, gasoline for field engineer trucks, maintenance for testing equipment, and salaried employee wages.

2. Determine which expenses are fixed and which are variable.

3. In the space below, write a paragraph explaining which expenses are fixed and which are variable, and why.


The facility mortgage is fixed because the payment does not change from month to month. Salaried employee wages are fixed because those employees make the same paycheck each month. Gasoline for field engineer trucks is variable because the price of gas fluctuates often, and some jobs may require more fuel than others. Maintenance for testing equipment is variable because sometimes the tools require fixing and work, and other times they do not.


Project Details

Project File:N/A


5-15 minutes


Topic: Financial ManagementSubtopic: Pricing


6.4 Given a scenario, identify the factors that impact the price to a customer


PricingWhen it comes to pricing, business owners have many factors to consider. They may look at variable expenses, competitor pricing, price changes of the materials they purchase to maintain their company, along with many others.

Purpose:After completing this project, you will know how to come up with pricing factors and solutions.

Steps for Completion:1. Consider some of the pricing factors that you heard of in the course video file.

2. In the space below, write a business scenario with at least three different factors that affect pricing for customers.

Answers will vary widely.

Students may draw from personal experiences, or future plans, to complete this project.


Project Details

Project File:N/A


5-15 minutes


Topic: Financial ManagementSubtopic: Analyze Cash Flow; Cash Flow Budget


6.5 Given a scenario, identify and analyze cash flow including: accounts receivable, accounts payable, inventory, and debt6.6 Given a scenario, create a cash flow budget


Cash FlowTo best measure cash flow, you should keep organized records of expenses, inventory, profits, and losses. A cash flow budget includes available cash, cash inflow, cash outflow, and an ending cash balance. To analyze cash flow, remember this scenario: Trey is reviewing the previous year’s cash flow for his dog walking business. His beginning inventory balance of leashes, shoes, treats, dog run, and other items was $700. New inventory purchases were $480. Inventory items were in the amount of $375. The ending inventory value is calculated by adding the existing and new inventory values together—$700+$480, which equals $1,180, then subtracting the $375 worth of inventory provided to customers. This means we have an ending inventory value of $805.

Purpose:After completing this project, you will know how to analyze cash flow and create a budget.

Steps for Completion:1. In the space below, write a cash flow budget for a business, real or imaginary,

including available cash, cash inflow, cash outflow, and an ending cash balance.

Possible answers must include: available cash, cash inflow, cash outflow, and an ending cash balance.


Project Details

Project File:N/A


5-15 minutes


Topic: Financial ManagementSubtopic: Break-Even


6.7 Given a scenario, identify the break-even point for the business

Note to Teachers: The formula for solving for a break-even point is: Fixed Costs/Average Price - Variable Costs = Break-Even (in units). Students need to solve for an estimate of Emma’s fixed and variable costs, as well as the number of purchasing customers (units) required to break even. If the calculation is done correctly, Emma will need to make 72,400 sales in her first year to break even.

Break-Even PointRunning a business requires diligence in many aspects, including measuring your break-even. Before you can start making a profit, you need to calculate your break-even point, which weighs the business costs to customer sales. The formula for solving for a break-even point is: Fixed Costs/Average Price - Variable Costs = Break-Even (in units).

Purpose:After completing this project, you will know how to find the break-even point for a business.

Steps for Completion:1. Read this scenario: Emma wants to open a candy shop. After researching

competitors in the area, she estimates she can charge an average of $1.50 per candy bar. Emma wants the shop to break even within one year of opening. She needs to estimate her fixed and variable costs and the number of purchasing customers (units) required to break even. The following are Emma’s costs: candy per sale = $0.25; annual rent = $18,000; annual utilities = $1,750; annual Internet/phone = $1,250; annual wages = $55,000; annual insurance = $4,500; equipment = $10,000.

2. Determine which costs are fixed and which are variable.

3. Solve for Emma’s break-even point.

4. In the space below, write your answer, explaining the math you used to solve for Emma’s break-even point.

Fixed Costs: annual rent = $18,000; annual utilities = $1,750; annual Internet/phone = $1,250; annual wages = $55,000; annual insurance = $4,500; equipment = $10,000. Sum of fixed costs = $90,500Variable Costs: candy per sale = $0.25Sum of variable costs = $0.25Fixed Costs/Average Price - Variable Costs = Break-Even Net revenue per sale = $1.50 - $0.25 = $1.25$90,500/$1.25 = 72,400 unitsEmma will need to make 72,400 sales in her first year to break even.

52 | Appendix Entrepreneurship and Small Business Project Workbook

Appendix


Entrepreneurship and Small Business Lesson PlanEach lesson is approximately 30 minutes and may include video training, fill-in-the-blanks, labs, projects, tests, as well as the course support files to follow along with the instructor. There is also a notes section for customizable lesson plans and extra notes. By adhering to the lesson plan, it will take approximately 14 class hours to complete the course. For workbook projects, we recommend students do the fill-in-the-blank sections as they watch the course.

Session 1: Four lessons for approximately 2 hoursDay Tasks Files What Is Covered Notes1 Pre-Assessment2 Videos:

The EntrepreneurCharacteristics of the EntrepreneurSelf-AssessmentsBusiness Opportunities

Practice lab:Entrepreneurial CharacteristicsOpportunity Sharing

Workbook projects:Fill-in-the-Blanks Session 1 Items 1-8CharacteristicsSelf-Assessment

1.0 The Entrepreneur1.1 Identify the characteristics entrepreneurs have 1.2 Given a scenario including a self-assessment outcome, identify the strengths, weaknesses, and risk tolerance the self-assessment identifies and how to compensate with services1.3 Given a scenario, recognize a business opportunity

3 Videos:The Entrepreneur

Risks/Benefits of Being an Entrepreneur

Workbook projects:Fill-in-the-Blanks Session 1 Items 9-12Risks and Benefits

1.0 The Entrepreneur1.4 Identify the risks, benefits, opportunities, and drawbacks of being an entrepreneur

4 Post-Assessment


Session 2: Four lessons for approximately 2 hours

Day Tasks Files What Is Covered Notes1 Pre-Assessment2 Videos:

Opportunity RecognitionTypes of OpportunitiesDemand

Practice lab:Benefits and Drawbacks

Workbook projects:Fill-in-the-Blanks Session 2 Items 1-6Opportunity TypesDemand for Services

2.0 Opportunity Recognition2.1 Identify the benefits and drawbacks of different types of opportunities (e.g. start a new business, buy an existing business, and buy a franchise)2.2 Given a scenario, analyze the demand for the good or service and opportunities in an environment

3 Videos:Opportunity Recognition

Customers Value Proposition

Practice lab:Segmentation Methods

Workbook projects:Fill-in-the-Blanks Session 2 Items 7-9Potential CustomersValue Propositions

2.0 Opportunity Recognition2.3 Given a scenario, identify the customers or potential customers for a business2.4 Given a scenario, recognize a value proposition

4 Post-Assessment


Session 3: Six lessons for approximately 3 hours

Day Tasks Files What Is Covered Notes1 Pre-Assessment

2 Videos:Starting a Business

Business Plan Legal Structures

Practice lab:Business Legal Structure

Workbook projects:Fill-in-the-Blanks Session 3 Items 1-6Business Plan — Oral PresentationLegal Structures

3.0 Starting a Business3.1 Identify the purposes and value of a business plan3.2 Identify the appropriate legal structure, benefits and drawbacks for different legal structures for a business


Getting Started Licenses and Regulations

Workbook projects:Fill-in-the-Blanks Session 3 Items 7-8Start-Up Cash

3.0 Starting a Business3.3 Given a scenario, calculate the amount of money (cash and credit) needed to start a business3.4 Given a scenario, identify different types of licenses and regulations that are required


Start-Up Funding Support

Practice lab:Matching Forms of Payment

Workbook projects:Fill-in-the-Blanks Session 3 Items 9-16Compound Interest

3.0 Starting a Business3.5 Identify the benefits and drawbacks of various sources of start-up funding: equity (friends/family, angels, venture), debt (bank, credit cards, personal loans), and grants (government, foundation, corporate)3.6 Given a scenario, identify support that is available for the business on a local, state, and federal level


Ethics and Social Responsibility Exit Strategies

Practice lab:Planning Your Exit

Workbook projects:Fill-in-the-Blanks Session 3 Items 17-21Ethics

3.0 Starting a Business3.7 Identify the ethical practices and social responsibilities of a business.3.8 Identify potential exit strategies for a business

6 Post-Assessment


Session 4: Five lessons for approximately 2.5 hours


Business OperationsPersonnel Division of Labor Taxes

Practice lab:Hiring Process

Workbook projects:Fill-in-the-Blanks Session 4 Items 1-6Capital Needs and Division of LaborRequired Taxes

4.0 Business Operations4.1 Given a scenario, identify key positions and human capital needs (including compensation and benefits)4.2 Given a scenario, determine whether work can be completed by the owner or whether employees or service providers are needed4.3 Given a scenario, identify the taxes that are required

3 Videos:Business Operations

Intellectual PropertyStandard Operating Procedures

Practice lab:Matching Protection

Workbook projects:Fill-in-the-Blanks Session 4 Items 7-10Intellectual PropertySOPs

4.0 Business Operations4.4 Given a scenario, identify intellectual property issues of trademarks, copyrights and patents4.5 Given a scenario, identify standard operating procedures (e.g., setup, conduct, internal controls, separation of duties)

4 Videos:Business Operations

Supply Chain Sustainability Growth Milestones

Workbook projects:Fill-in-the-Blanks Session 4 Items 11-14Supply ChainGrowth and Sustainability

4.0 Business Operations4.6 Given a scenario, identify a supply chain (e.g. clear commitments, active communication, negotiated costs)4.7 Given a scenario, identify the factors that lead to sustainability4.8 Given a scenario, identify milestones as part of a growth strategy

5 Post-Assessment


Session 5: Four lessons for approximately 2 hours


Marketing and SalesSuccessful Sales Finding Customers

Practice lab:Sales ProcessClosing a Sale

Workbook projects:Fill-in-the-Blanks Session 5 Items 1-4Successful Sales ProcessFinding Customers

5.0 Marketing and Sales5.1 Given a scenario, develop a sales strategy and identify characteristics of a successful sale5.2 Given a scenario, identify and analyze the cost/benefits of finding customers

3 Videos:Marketing and Sales

Retaining Customers Communication

Practice lab:Marketing Pros and Cons

Workbook projects:Fill-in-the-Blanks Session 5 Items 1-8Retaining CustomersCommunication Through Marketing

5.0 Marketing and Sales5.3 Given a scenario, identify how to retain customers and develop a relationship with repeat customers5.4 Given a scenario, determine value and methods of communication including: websites, brochures, social media, and advertising

4 Post-Assessment


Session 6: Five lessons for approximately 2.5 hours


Financial ManagementFinancial Statements Credit Ratings

Practice lab:Costs and Expenses

Workbook projects:Fill-in-the-Blanks Session 6 Items 1-4Financial CategoriesCredit Ratings

6.0 Financial Management6.1 Given a scenario, interpret basic financial statements such as income statements and balance sheets6.2 Given a scenario, identify the factors that influence credit ratings and the importance of a positive credit rating

3 Videos:Financial Management

Expenses Pricing

Workbook projects:Fill-in-the-Blanks Session 6 Items 5-8Fixed and Variable Expenses Pricing

6.0 Financial Management6.3 Given a list of expenses, identify which are fixed versus variable 6.4 Given a scenario, identify the factors that impact the price to a customer

4 Videos:Financial Management

Analyze Cash Flow Cash Flow Budget Break Even

Practice lab:Preparing a Cash Flow Budget

Workbook projects:Fill-in-the-Blanks Session 6 Items 9-14Cash FlowBreak-Even Point

6.0 Financial Management6.5 Given a scenario, identify and analyze cash flow including: accounts receivable, accounts payable, inventory, and debt6.6 Given a scenario, create a cash flow budget6.7 Given a scenario, identify the break-even point for the business

5 Post-Assessment


Session 1: The Entrepreneur Characteristics of the Entrepreneur Self-Assessments Business Opportunities Risks/Benefits of Being an Entrepreneur

Session 2: Opportunity Recognition Types of Opportunities Demand Customers Value Proposition

Session 3: Starting a Business Business Plan Legal Structures Getting Started Licenses and Regulations Start-Up Funding Support Ethics and Social Responsibility Exit Strategies

Session 4: Business Operations Personnel Division of Labor Taxes Intellectual Property Standard Operating Procedures Supply Chain Sustainability Growth Milestones

Session 5: Marketing and Sales Successful Sales Finding Customers Retaining Customers Communication

Session 6: Financial Management Financial Statements Credit Ratings Expenses Pricing Analyze Cash Flow Cash Flow Budget Break Even

Entrepreneurship and Small Business Course Outline

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