How to Create an Effective Business Plan Entrepreneurship Unit 3, Lesson 2 Copyright © Texas Education Agency, All Rights Reserved 1

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Goals Students can identify resources for new business ideas. Students will recognize different business opportunities. Students will identify their own personal goals. 3 Copyright © Texas Education Agency, All Rights Reserved

Terms Small Business Administration Small Business Development Center Service Corps of Retired Executives Trade Association 4 Copyright © Texas Education Agency, All Rights Reserved

Research the Business Plan The first step of developing a business plan is to be able to convince the reader that you have a practical business idea. Some issues that must be researched include –a location for business, –the equipment /supplies that you will need, –the competition, and –the pricing of product/service. 5 Copyright © Texas Education Agency, All Rights Reserved

Research the Business Plan Community, Government, and Professional Resources –Small Business Administration (SBA) Provides management assistance for current and prospective small business owners. Provides financial assistance. Provides counseling and training for small business owners. Provides disaster assistance Provides a voice for small businesses on legislative issues. Copyright © Texas Education Agency, All Rights Reserved 6

Research the Business Plan Community, Government, and Professional Resources (Continued) –Small Business Development Centers (SBDC) Counselors provide free one-on-one assistance in developing a business plan Provide inexpensive workshops on topics to help develop a business plan Formed as a cooperative effort of the private sector, educational community, and federal, state, and local governments Enhance economic development by providing small businesses with training and technical assistance Copyright © Texas Education Agency, All Rights Reserved 7

Research the Business Plan Community, Government, and Professional Resources (Continued) –Service Corps of Retired Executives (SCORE) More than 10,500 retired executives who volunteer their time to provide entrepreneurs with real-world advice and knowledge Set up a meeting with a SCORE volunteer, work with a SCORE volunteer over the Internet, or attend a workshops sponsored by SCORE Copyright © Texas Education Agency, All Rights Reserved 8

Community, Government, and Professional Resources Chamber of Commerce – A local organization of businesses whose goal is to further the interests of business. Trade Associations – Organizations made up of professionals in a specific industry. Professional Consultants – Paid professionals who provide guidance. Financial Institutions – Local banks can provide counseling and financial assistance. Copyright © Texas Education Agency, All Rights Reserved 9

Print Resources Books Magazines Government Documents SBA Publications Copyright © Texas Education Agency, All Rights Reserved 10

Online Resources Websites –SBA –SBDC –SCORE Copyright © Texas Education Agency, All Rights Reserved 11

Mistakes in Business Planning Unrealistic Financial Projections Undefined Target Market Poor Research Ignored Competition Inconsistencies in the Business Plan Copyright © Texas Education Agency, All Rights Reserved 12

Assignments  Inform Assignment #1 Split the class into five groups. The five groups will use the Internet to research SBA, SBDC, SCORE, the chamber of commerce for your community, and professional organizations representing the career interests in that group of students. Each group is responsible for teaching the class about the organization they have researched. Digital group presentations will be evaluated using a rubric.  Location, Location, Location Assignment #2 The success of a business depends heavily upon the location. The business must be located conveniently for the target market. The location should be easily accessible by traffic going both directions. There should be plenty of parking spaces available in a well-lighted parking lot. There should be a high level of consumer traffic flow daily. Ask students to select an available business location in the community, conduct research, observe the location, and write a report explaining why the location is a good/poor choice for a business. The report will be evaluated using a rubric.  Entrepreneurship Newscast Assignment #3 Ask students to locate two articles in the library or on the Internet about successful entrepreneurs and write the Top Ten Points for each article. Students will share their information in class, using digital presentations for their newscasts. Digital presentations will be evaluated using a rubric. Copyright © Texas Education Agency, All Rights Reserved 13