The Teen Entrepreneur

Sections 1-4 Discussion Questions to get you started. Why would you want to start your own business?

To work for yourself Do not have to report to a superior or someone Use your talents or gifts or hobbies

What is an entrepreneur? A person who brings together productive resources

to produce a good or service and then assumes the risk of taking that product or service to the marketplace

What is a business plan? A form stating a set of goals for your business, giving

the reasons why they are expected to be achievable and the plans for attaining those goals.

Business Plan Components What are the components of a business plan?

Business Plan Components What are the components of a business plan?

Why is it important for every business to have a business plan? It provides directions for the business and those individuals or

financial institutions who will loan you money. It will provides if the business will survive before investing

time and effort to establish it. What are some advantages to owning your own

business? Your own boss; In control of the assets

What are some disadvantages to owning your own business? Everything falls on “your shoulder” for losses

Who is Shaun Decker? (read the passage)

Why does Shaun Decker need a business plan? To convince his parents that his new business has the

potential to be successful, so that they would provide him a startup loan to start it.

Project 1: Choosing Your Teen-based Business: What is a sole proprietorship?

An unincorporated business owned by one person and bears the responsibilities for the debts and the risk of loss if the business fails

What is a partnership? An unincorporated business owned by two or more persons.

Each share the potential for profit and risk of loss. What are the advantages and disadvantages to owning

your own business as a teenager? Advantage – you can start now understanding the ways to

develop a business Disadvantage – doesn’t have much knowledge on starting a

business List and discuss some possible teen-based businesses

you could feasibly start. Babysitting, car washing, tutoring and training, music, exercise

training, etc.

Project 1 – continue… What special skills or talents do you possess that

might assist you in starting your own business? Drawing, cooking, good with math, enjoying reading,

understanding the techniques in playing video games, training or helping others

What talents or abilities do you possess that you can turn into a profit-making venture? Persuader, multi-task, doer, accomplish things on time,

posses time management, leadership skills, self motivated, etc (think of the Management skill Pyramid)

What business did Shaun Decker decide to start? Desktop publishing

Why did Shaun Decker choose his business? To provide the community a one-stop source of quality

desktop publishing products and services in producing high quality documents.

Project 2: Creating the Company Description Company name Business Summary Form of Ownership Industry Classification Location Year Established Primary Function Employees Business Advisors

Project 2: Creating the Company Description What is the purpose of the Company Description of a

business plan? To provide detail information on what you are trying to

accomplished, explanation of your products or services; a clear picture; Your objective

Why is it necessary for a business plan to include a Company Description? So that others can understand your overall productivity of

your work or business without questions or insecurity for investments

Why is the name of a business so important to its success or failure? Your business name represents who you are and your vision;

A name that would be an “eye catcher” to others. The name could “make your business successful or cause your business to fail”. It’s all in the name.

What are some business names that “jump out” at you? My business name is “Training Just For You”

Project 2: Creating the Company Description Cont.. Why is it important to not use a business name

that already exists? It could cause many problems with the city; your title

issues; Better Business Bureau, Why is it important to get other people’s opinions

before deciding on a business name? Having more than suggestions can help you decide on

a name that is more attractive to the public What is Shaun Decker’s business name?

Decker’s Digital Desktop Do you think Shaun Decker made the right choice

in choosing his business name? Yes, Digital Desktop is representing many types of

documents or electronic products and services

Project 3: Creating a Logo and TaglineProject 3: Creating a Logo and Tagline What is a logo?

http://www.logobee.com/feature3.htm A design symbolizing ones organization.

Why are logos so important to a business? This is a design that is used for company’s letterhead,

advertising material, and signs as an emblem by which the organization can easily be recognized.

How does a logo help create an identity and image for a business? It It is a graphic representation or symbol of a company

name, trademark, abbreviation, etc. and often uniquely designed

Why is it important for a company’s logo to be simple in design and color? It’s has to be done in a stylish manner yet remaining

conservative so that it’s easier for the eye to catch and the brain to memorize your logo design

Project 3: Creating a Logo and TaglineProject 3: Creating a Logo and Tagline Why is it important to sketch several logo

designs on paper before creating it on a computer? Logos can be very different with shapes. The best

shapes to use are symmetrical geometrical shapes. These shapes can be placed almost anywhere.

What are some popular logos you can think of? http://picdorsey.com/work/view/various-logos-desi

gns http://www.joseguizar.com/753995/Various-Logos

Do you recognize these logos?Do you recognize these logos?

Project 3: Creating a Logo and TaglineProject 3: Creating a Logo and Tagline What is a tagline?

http://www.powerhomebiz.com/vol112/tagline.htm The one or two line descriptor that often comes after

a product logo or company name. Another name is called slogans.

Why are taglines so important to a business? They efficiently manipulate the mind and enhance

your desires to believe that this product is the best the world has to offer

What are some popular taglines you can think of? Nike – “Just do It”; Taco Bell – “Think outside the bun” Subway – “ Eat Fresh” http://www.buzzle.com/articles/ad-slogans.html

Project 3: Creating a Logo and TaglineProject 3: Creating a Logo and Tagline What do you think about Shaun Decker’s logo and tagline?

“The Image for Your Future”

What are some possible elements you can include in your company logo? Catchy slogans are short, crisp, unique, relevant, and

personalized from the consumer's point of view are the ones that manage to win the heart and influence the mind.

It is connected to the brand – must make sense, consistent with your company’s vision, culture and values.

It’s is “ownable” – tie into the core of your company It is dead simple – No one has time for complexity -if it needs to

be explain it is obviously no good. It is clear It is consumer-focused – why should buy from you.

http://ethnicomm.com/blog/marketing/5-elements-of-a-great-tagline/

Project 4: Creating the Description of Products and Services What is the Description of Products and Services

section of a business plan? http://www.business-plans-guide.com/products-and-services-description.html A brief definition of your industry – describe what your

business is about Products and service you will provide Nature of work or what is your responsibility in getting the job

completed-what will the consumer see or receive or obtain http://retail.about.com/od/businessplans/p/

products.htm What is the purpose of the Description of Products and

Services section of a business plan? To provide to consumer detail information about how your

business works; what they can expect To describe what products and services are offered, any

plans for future goods or product lines.

Project 4: Creating the Description of Products and Services What is usually included in the Description of Products

and Services section of a business plan? The uniqueness of the product or service The method in which the items are sold – how it is sold Benefits to the customer Why customers will purchase it from your business Vendor details, noting any exclusive dealerships How does your products differ from the competitiono The products and services section is not intended to list each and

every product, but to give an overview of the product lines and the associated research. (list enough so that consumers can become well knowledgeable of what your business

o What kinds of products and/or services are offered in the type of business that you selected? Shaun Decker business offered: flyers, newsletters, business

cards, etc What must be done to produce the products and/or

services in the type of business that you selected? Research the type of business you have and identify the type of

products or services they have produced.

Project 5: Creating the Market Analysis: What is the Market Analysis section of a business plan?

http://www.netmba.com/marketing/market/analysis/ I. Analysis of the Target Market   II. Analysis of the Competition  III. The Outlook of the Industry  IV. Owner’s Personal Strengths

What is the purpose of the Market Analysis section of a business plan? http://www.entrepreneur.com/startingabusiness/businessplans/businessplancoachtimberry/article78002.html

To determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm

What is a target market? (Analysis of the Target Market) Specifically categorized group of consumers that a business "targets"

when developing products/services and marketing strategies for its company.

To build the success of the company; to make yourself known Basic information about the target consumers, such as age,

gender, income/occupation, and marital status; Lifestyle - areas of living (urban or rural); hobbies, interests, and extracurricular activities

Important to try and determine how frequently the product or service will be used

Must discover what the target market needs and desires so that it can appeal to those things through advertising and develop fresh ideas that address those specific needs

Why is it important to understand who your competitors are and what they do? (Analysis of Competition)

To see what you can do better or different from their business structure

Saying “Keep your enemy closer than your friend”; you need to have detailed information about the planning strategy, new product launch and various promotional mediums undertaken by your competitor.

to study your competitor closely and gain knowledge about the products, services offered by him, pricing and distribution strategies adopted by him and the goodwill the rival firm carries in the market.

competitor's strength and weakness will help you to evaluate the areas where you can successfully attack your competitor. For example, if your competitor has a strong product offering but has a weak distribution network, you could strengthen your logistics by which your product can easily reach the customer within no time.

Look in the Local Chamber of Commerce Look in www.switchboard.com

Project 5: Creating the Market Analysis:

Project 5: Creating the Market Analysis What resource can be used to research the future outlook of

the industry category your business falls in? (The Outlook of the Industry) Use the Occupational Outlook Handbook and look under the section

“Outlook” ; Type your industry in the Search box: Example: Childcare industry

http://www.bls.gov/oco/ Why is it important to research the future outlook of the

industry category your business falls in? To be able to plan your prospective position as where you would like

to direct your company products and services compared to your competitors.

Who is Shaun Decker’s target market? Small businesses who does have the need for a full-time desktop

publisher for which they can purchase brochures, business cards, etc..

Who are Shaun Decker’s competitors? The Printed Page Paper Stocks Noffri’s Publishing Electronic Publishers, Inc. ***

Who are some of your competitors? What are his future outlook of the industry?

Shaun discovered that “firms are finding it more profitable to print their own newsletters and other reports than to send” so his focus will be on small business who can not afford to hire a full-time publisher. Therefore, it will be strong and growing.

What are some his your personal strengths as the owner of the business? (Owner’s Personal Strength) Being able to operate out of his parent’s home Minimal cost for overhead expenses (rent, utilities,

miscellaneous, What is saved from overhead can built a more competitive

market

Project 5: Creating the Market Analysis:

Project 6: Creating a Business Card What is the purpose of a business card?

For these reasons: students on the look out for jobs, people who want to change their professions, those having a side-business / planning to start one and individuals who are passionate about something and want to network with similar or like-minded people and to help advertise your business as well as provide customers your information

What is usually included on a business card? Company’s Name, Logo, contact number, website,

tagline, explanation of about your business Why is it important to have a business card?

They are used by several professions, businesses and individuals to pass information to potential customers and other professionals for networking.Read more: What Is the Purpose of a Business Card? | eHow.com http://www.ehow.com/facts_4894286_what-purpose-business-card.html#ixzz1ntD5bZuZ

As a business owner, when do you think you will use your business card? Business cards are an easy marketing tool used by

professionals to advertise their services. They are used when a person's contact information is requested, at professional conferences or meetings, and to refer another person to a business or person with whom you've worked. Anytime you are traveling or socializing

Read more: What Is the Purpose of a Business Card? | eHow.com http://www.ehow.com/facts_4894286_what-purpose-business-card.html#ixzz1ntDY9zS2

Why is it important to sketch several business card designs on paper before creating it on a computer? To have multiple opportunities to choose the best layout for

your business as well as for your clients for an interpretation of your business;

Why is it important to include your company logo on your business card? It’s identifies you or your business or interest

Project 7: Creating Company Letterhead: What is company letterhead?

A letter that is used from your business to display the company name, address, contact numbers, website, logo, and sometimes VP, CEO, important individuals.

Why is it important for businesses to use letterhead when corresponding with customers? Customers would know who you are representing

Why is it important to sketch several letterhead designs on paper before creating it on a computer? To have a variety of choices and what is best for your

business Why is it important to include your company logo on

your letterhead? To display your business so that others would know how

to recognize your business

Project 8: Creating the Marketing Plan What are the 4 P’s of marketing?

http://www.witiger.com/marketing/4Ps.htm Product: the physical aspects of the product – Making

something people want to buy with the right attractive features

Place: distribution channels – getting it to the customer, middlemen and wholesalers, shipping costs; decisions about where to sell the product

Promotion: Telling customers about the product, personal selling, mass selling, advertising, publicity, sales promotion Mass selling – Advertising – you pay for; Publicity – is free Sales Promotion – stuff you do in the store to get the customer to

try the product such as contests, coupons, free samples Personal Selling – direct contact person2person with a potential

customer like a high quality consumer products such selling a car Price: pricing objectives, skimming, profit oriented,

discounts, competition’s price

Project 8: Creating the Marketing Plan Cont. http://sbinfocanada.about.com/cs/businessplans/a/

bizplanmarkplan.htm What is the Marketing Plan section of a business plan?

Section that explains how you are going to get your customers to buy your products and/or services

What is the purpose of the Marketing Plan section of a business plan? To detail your plan regarding Products and/or Services and

your Unique selling proposition; pricing strategy; sales/distribution plan, and advertising and promotions plan

Why is it important to research the prices your competitor’s charge for the products and/or services you will be selling? So that you will know how to set your prices in a more

competitive market; not too high and no to low but somewhere in between.

Project 8: Creating the Marketing Plan Cont. What are some ways that you can promote your

business? Newspaper ads Social Networks such as LinkedIn, Facebook, Twitter Use your vehicle for posting or window or door sticker Add comments at the bottom of web postings Advertise on Craiglist Place poster in windows (get permission) Free directory websites (Yellow pages http://www.businesshelper.co.uk/top-ways-advertise-business-for-

free-5.htm Where will you operate your business?

Check out your demographics such as traffic, neighborhood, retailers like industrial or office parks, schools, colleges, hospital

http://www.entrepreneur.com/startingabusiness/startupbasics/location/article73784.html

Project 8: Creating the Marketing Plan Cont. Where will Shaun Decker operate his desktop

publishing business? Conducted at the owner’s resident and within

Pleasant Landing city limits for delivery What products and/or services will Shaun

Decker offer through his business? Business Cards, Letterhead, brochures, etc..

What products and/or services will you offer through your business?

Do you think you will charge more or less for your products and/or services than your competitors? Why?

Project 9: Creating the Operating Plan: http://www.youtube.com/watch?

v=0Jd34WCmBMM What is the Operating Plan section of a business

plan? “describes the physical necessities of your business'

operation, such as your business' physical location, facilities and equipment.”

“it may also include information about inventory requirements and suppliers, and a description of the manufacturing process.”

What is the purpose of the Operating Plan section of a business plan? To explain the ways you will serve customers http://sbinfocanada.about.com/cs/businessplans/a/bizplanoperplan.htm

Project 9: Creating the Operating Plan What are the five categories usually included in

the Operating Plan section of a business plan? Purchasing - What supplies or materials will you

need? What is the name of the company or companies that will deliver your materials? How often will they delivery or when is delivery turnaround? (Example: truck deliveries or Fed-X or UPS orders)

Production – relating to the length of time it will take to accomplish your job or the complete your product or services (getting the job done) (Example – daycare – hours of operation)

Sales & Marketing - how much time will spend marketing your products…relates to your Market plan

Project 9: Creating the Operating Plan Accounting – how will you keep your records

regarding how much is spend (expenses) and how much is earn (revenue). You will do this by keeping an accounting system known as a General Journal which is balance each month. Accounting records are keep each time a purchases is made or lost which is balance weekly.

Distribution – how will you deliver your product/services and the length of time will take to deliver to your customers.

Why is it important for a business to have an operating plan? So that you will have a clear understanding on how

your business will be conducted day to day.

Project 10: Creating a Schedule of Startup Funds Required What is a Schedule of Startup Funds Required?

To determine how much capital or funds is needed to start your business which will identify cost of equipment, materials/supplies, and advertisement

Why is it important for a business owner to know how much money will be required to start the business? Knowing how much capital or funds is needed will make it much

easier in getting organized in starting your business by purchasing your necessarities.

What is usually included in a Schedule of Startup Funds Required? Equipment needed, materials/supplies, and advertisement

What equipment did Shaun Decker need to start Decker’s Digital Desktop? Computers, cameras, printers, toners, etc.

What materials and supplies did Shaun Decker need to start Decker’s Digital Desktop? Reams of paper, brochures papers, business cards paper,

miscellaneous What equipment and materials will you need to start your

business?

http://www.ehow.com/how_2314968_fund-small-business-startup.html

Project 11: Creating a Customer Prospect Database What is a Customer Prospect Database?

the analysis of databases keeping information about present or potential customers

What does a Customer Prospect Database consist of? consist of basic personal details of customers

along with details of their past transactions Why is it important for a business to keep a

database of prospective new customers? it can then be broken down into specific groups

and analyzed to produce valuable financial customer database marketing information.

http://pritecho.com/2010/09/prospective-database-program-lucratively-target-potential-customer/

Project 11: Creating a Customer Prospect Database What are some sources you can use to gather

information about prospective customers for your business? Local or regional Phone book, Chamber of Commerce,

Social Network Ex. Daycare – neighbor schools; Lawn care –

churches, schools, etc What sources did Shaun Decker use to gather

information for his Customer Prospect Database? He used business owners

How is Shaun Decker going to use his Customer Prospect Database to attract new customers for Decker’s Digital Desktop? To have ongoing business services

Project 12: Creating an Introductory Promotional Letter: What is an Introductory Promotional Letter?

To introduce or explain to your prospect customers what you can offer and what your business is about

How can a promotional letter help a new business? Provide 'necessary information‘ that you've have to

mention briefly about your firms potential Example of Promotional Letter:

http://www.buzzle.com/articles/business-introduction-letter-template.html

What is a “premium offer?” An offer you would like to present to your customer

such “Free Estimate” Free cookie with a purchase five” to help build your business by allowing them to try your products.

Project 12: Creating an Introductory Promotional Letter: What premium offer did Shaun Decker include

in his Introductory Promotional Letter? Offer 100 free Business Cards with a purchase of

500 What are some possible premium offers you

can include in your Introductory Promotional Letter?

Project 13: Creating a Three-panel Brochure: What is a brochure? How can brochures help businesses grow? What elements are included in a well-designed

brochure? What are some design tips and guidelines for

designing a three-panel brochure? Why is it important to sketch several brochure designs

on paper before creating it on a computer? Why is it important for a brochure’s design to be

similar to other documents within a business? Do you think Shaun Decker created an effective three-

panel brochure? Why or why not? List some important information that you will include in

your three-panel brochure.

Project 14: Creating a Newspaper Advertisement: Why would a business use a newspaper

advertisement to promote itself? What information is usually included in a

newspaper advertisement? Why is it important to sketch a newspaper

advertisement design on paper before creating it on a computer? Do you think Shaun Decker created an effective

newspaper advertisement? Why or why not? If your business becomes a reality, what

newspaper will you choose to advertise in? Why?

Project 15: Creating an Owner’s Resume: What is a resume?

Written statements of all the facts about yourself that might be of possible interest to an employer

What purpose does a resume serve? Used as a reference when filling out a job application Helps to displays your skills, experience, and qualities for a

position

Why would a business owner want to include his/her resume in a business plan? Many people want to know what you can do; Have a

resume can assists in building your business by marketing your skills

How many pages should a resume be? Limited to two pages but one page is preferred.

Project 15: Creating an Owner’s Resume: What are three types of resumes?

Chronological Resume highlights your work history in chronological order with

room for achievements and responsibilities at each job; which includes summary, work experience, education/training and skills; the education and experience are listed in a specific time sequence; the most recent ones are written first

Functional Resume Focus your resume on your skills and abilities, rather than

your chronological work history; the employment dates can be eliminated;

Traditional Resume the significance of both the functional and reverse

chronological type of resume; A combination type becomes the best option when any specific job position requires a perfect blend of skills, talents, abilities, and experiences

High School Resume

IV. Standards for Writing a ResumeA. Organization may

varyB. Should be organized

logicallyC. Should be typed

neatlyD. Should not have any

spelling errors

E. Should be presented in an outline form

F. Limit to two pages (one page preferred)

G. Should present qualifications and experience honestly

V. Information to be Presented

Name, address, and phone number Objective/Summary

The type of job you are applying

Education information Name of school address Dates attended Subjects studied (only job related) Awards and activities

Work Experience Name & Address of company you worked How long you work there (mo/yr) What you did & special training you rec’d

List most recent job 1st

Most recent 1st

References Former Employers Former teachers Adult friends Community leaders Avoid using relatives as references Be sure to get permission before using people’s

names as references

Special Skills Operation of Equipment Speed on equipment Knowledge of computer software Hobbies or Interests that relate to your job Organizations or ClubsResume Example.ppt

Project 16: Creating a Projected Income Statement:Discussion Questions and/or Topics What is an Income Statement?

A financial statement showing the revenue and expenses for a fiscal period. Identifies the profit you are planning to make or spend within a time period (a month, etc)

What are the components of an income statement? Sales Revenue(what your earn) and Expenses (what your paid or

spent) What is Net Sales?

Total sales less sales discount and sales returns and allowances What is Cost of Goods Sold? (cost of merchandise sold)

The total original prices of all merchandise sold during a fiscal period What is Gross Profit?

The total pay due for a pay period before deductions (same as total earnings)

What are Operating Expenses? Items needed to get your business started and running smoothly

What is Net Income? The difference between total revenue and total expenses when total

revenue is greater

Project 16: Creating a Projected Income Statement:Discussion Questions and/or Topics What is the difference between Net Sales and Net Income?

Net Income is the overall or total profit you earn after expenses are deducted for the fiscal period while Net Sales is what you have planned to earn or profit

Why is it important for a business owner to forecast or project his/her business income? Sales are very important of a business. If there are no sales,

then an organization can not provide. Sales forecasting helps in this process and enables the management in arriving at a rough figure of how much of profit can be expected in that year and how much of that money can be invested by the organization.

Why is it important to include a Projected Income Statement in a business plan? Helps an organization in self assessment. The evaluation of your

sales in the past and the present also helps you understand the rank of your organization in competition with the others in similar business. It helps to plan for the future.

What is Shaun Decker’s projected Net Income for his first year in business? Net Income - $8297.67