Thursday, April 10 th  PLEASE DO NOT LOG ON TO THE COMPUTER!!!  Warm Up: Find a person you normally don’t talk to and answer these questions …  What’s the difference between these two kinds of start up costs: assets and expenses?  List three start up costs you have identified for your business

Start Up Costs  Assets: Things of value that you own  Expenses: Initial costs you must incur before opening

FIELD TRIP!  You need paper, pen/pencil and a solid writing surface  Bring anything with you that you will need at lunch  I can lock this room  NO technology!!!

Field Trip Part II  NO TECHNOLOGY!!!  Get back into your teams from the beginning of class  Compare your start up cost list and create one list together (by adding to each list or whatever works)  Group discussion: start up costs  Explanation: Assets vs Expenses  As a team, classify the start up costs as Assets or Expenses

ASSET OR EXPENSE?  Asset: Thing of value that you own; use it long term  Expense: additional costs you must incur to open your doors

On your own …  Write, in your own words, a definition of … start up costs, assets, expenses  Look at the list of start up costs you already began (with the reading) and classify each as an asset or an expense

Ticket Out  Standing check:  I can identify start up costs for my business  I know the difference between costs classified as assets and costs classified as expenses

Friday, April 11 th  NO COMPUTERS!  DROP YOUR BAG SOMEWHERE CONVENIENT, GET OUT PAPER AND A PEN AND …  IF YOUR SMALL BUSINESS IS A SERVICE BUSINESS GO STAND AT THE BOARD AT THE BACK OF THE ROOM  IF YOUR BUSINESS IS A RETAIL BUSINESS GO STAND AT THE BOARD ON THE SIDE OF THE ROOM

TEAM WORK  BIG LEARNING TARGET: I can identify and calculate accurate start-up costs for my small business.  1: Given a business, I can identify accurate start-up costs.  2: I can determine ways to minimize my start- up costs without compromising my business ideas.  3: I can categorize start-up costs as either assets or expenses.  4: I can research start-up costs for a small business.

IN CLOSING …  Reflection question at the end of your document  Ticket out  HOMEWORK over break … THINK about start-up costs for your business!!  Have a great break, be safe!

Tuesday, April 22 nd  Warm Up: Please log in and check your grades. Make a note of any questions/concerns … there will be time to talk to me later in the hour.  Today …  Assignments from week prior to break  Start Up Costs warm up activity  Start up Cost PRACTICE assignment  Return of Market Analysis

Start Up Costs  Anne’s beginning a Home Cleaning Business. Make a list of her start up costs (the items, not the amounts)  Where can we find costs for those start up items?  Your job: complete start up costs for your business  NOTE: you must show completion of all previous start up cost assignments before I will accept your start up cost assignment

PRACTICE VS PERFORMANCE  Practice grade is FINAL  Practice grades count for 12% of your overall grade  Performance grades – revision is allowed, up until May 2 nd.  Performance version of company overview due by Thursday, April 24 th  Return rubric to box  Performance version of market analysis due by Friday, April 25 th  Return rubric to box

WEDNESDAY, APRIL 23 RD  Warm Up: What is your biggest start up cost? Is there a way you can minimize it? Should you include the following in start up costs:  Staff Salaries  Rent  Utilities  Consider ways to limit start up costs … just a few ideas:  Rent a facility instead of building or buying  Consider scaling back … fewer products, fewer services to start, for example  Use things you already own (a car, a computer, etc.)

Due Dates  Start Up Costs due Thursday, April 24 th (NO class time to work on them)  PERFORMANCE Company Overview due Thursday, April 24 th  PERFORMANCE Market Analysis due Friday, April 25 th

Thursday, April 24 th  Warm Up: Please log in to computer. Go to my website, read the article titled “Calculating Revenue for Your Business”. Take notes in any fashion!  Today …  Calculate your revenue  Some terminology – notes  Income Statements

Revenue  Business revenue represents the total amount of money coming into a business before expenses have been taken out

Calculating Revenue - Food  --For those going into food industry, estimating a monthly revenue is based on how many meals you can reasonably expect to serve a day times 30.

Calculating Revenue - Widgets  --A business that sells widgets multiplies the amount of widgets that he can reasonably expect to sell in a month times 12 for a yearly estimate. A reasonable estimate can be determined by talking to other vendors and suppliers.

Calculating Revenue - Service  --Service industries estimate future revenue based on existing contracts. For example, a piano teacher with 10 students generating $1000 per month in revenue can expect a yearly revenue of $12,000.

NOW YOU CALCULATE YOUR REVENUE Create a document in your google drive. Make notes about your calculations so you can remember!!!

Finance Of A Business ● In order to understand the finances of a business, we need to have a common language ● Together, we are going to learn a BUNCH of terms ● For each term, TAKE NOTES if you don’t know the term

Financial Records ● Why is it important to know your businesses' finances and to keep good financial records? – So you know if you are doing well – So you don't go bankrupt – If you have a loan or investors, you need to tell them how you are doing – Avoid theft – To help improve your business

Finance Definitions ● 1. Demand: How much the market (customers) wants ● Ex: “everyone wants black hoodies” ● 2. Supply: The amount available for sale ● 3. High prices = High demand, low supply ● 4. Low prices = Low demand, high supply

Finance Definitions ● 5. Start up costs: What I need to spend to be able to open the doors. – Ex: I need to buy a lawn mower to mow the lawns. ● 6: Ongoing costs: The ongoing costs I encounter every day I operate my business. – Ex: Rent, gas for the lawn mower

Finance Definitions ● 7. Fixed costs: costs that do not vary based on production; costs that must be paid even if you don't sell a thing. – Example: I have to pay the rent even if I don't sell or make anything. ● 8. Variable costs: costs that vary based on production or other factors. – Ex: If I am open more hours, I will pay more hourly wages

DEFINITIONS ● 9. Revenue: the money you bring into your business. Ex: I sold $100 worth of hoodies ● 10. Cost of Good Manufactured or Cost of Goods Sold: how much it costs the business to either make or buy the items it sells. – Ex: It costs the school store $10 to buy polos. They sell the polos for $20. ●

Ended here fifth and seventh hours

Monday, April 28 th  WARM UPS:  First, read the INCOME STATEMENT article on my website & take notes  Second, save the Income Statement Template to your Google Folder for this class  RENAME IT WITH YOUR NAME AND YOUR BUSINESS NAME  5_hasseld_annies_home _cleaning_income statement

Grades  check your grades and STAY LOGGED IN to MiStar

Grades

Today …  Open the example Income Statement on my website  Read it  Find three facts  Discuss/Review Income Statement  Revenue  Cost of Goods Sold  Wholesale price – read article on website  Expenses  What will it take to run your business on a daily basis?

Cost of Goods Sold  For a restaurant, food cost is usually ¼ to 1/3 of total sales  For a service business, you only need to include anything that’s an exact cost of that service (i.e. ice time to give a goalie lesson)  For a retail store, it’s usually 1/3 to ½ of sales

Finance Definitions 11. Income: The money you make AFTER you pay all your expenses – Ex: I sold $100 worth of hoodies. The hoodies cost $60. My other expenses cost $25. My INCOME is $ Profit/Loss calculation: Total Revenue – Total costs

Finance Definitions ● 13. break even point: the point where costs = revenue – Ex: If all of my costs = $400, I need to sell $400 worth of stuff to break even ● 14. cost per unit: the amount of cost per unit of item purchased. – Ex: If I buy a case (24) of pop that costs $4.80, my cost/unit is 4.80/24 =.20 per can of pop

Tuesday, April 29 th ● Warm Up: Calculate this problem: In the school store, my sales for November were $1,100. My costs of goods sold was $275. My other expenses totaled $900. What is my income? What can you INFER from this calculation? (List SEVERAL ideas)

Today  Calculate Wages (see next slide)  Create Income Statement  Revenue  Cost of Goods Sold  Expenses  USE the format provided!

Wages  Ask yourself these questions …  How many hours am I open in a day?  How many days a week?  How many people will work at one time?  How much will I pay them?

Wage Example  How many hours am I open in a day? 8  How many days a week? 5  How many people will work at one time? 2  How much will I pay them? $10  8*5*2*10 = $800 – labor cost for one week *52 weeks = $41600

Employee Benefits  This may be something for the future, or you could do this now.  Take your total wages and multiply them by 30% to get a number for benefits.

Financial Summary  LAST, summarize your income statement in words – at a very high level  See the My Ice Shavings plan for an example