How do new products come to market???

For the teacher This lesson plan is designed to help high school students learn about how ideas become products. It doesn’t just magically happen! If students gain an understanding of the process, they will be better equipped to fully appreciate all of the wonderful products they enjoy. This plan is the first module, which helps students understand how ideas are developed into a Business Plan. This lesson can actually be very useful for those students who do have really great ideas! One thing I really love about this module is that it helps students appreciate the value of working together in teams to create something that will benefit themselves and others. No one can get to the finish line alone.

For the teacher These are the steps in this module Step 1: The teacher provides an orientation, divides the class into teams and the students begin brainstorming Step 2: Students conduct independent research to fulfill their role within their teams Step 3: With guidance, teams begin to write their business plans Step 4: Teams present their business plans to the class for a grade Encourage teams to work together outside of class The class can be given as much time as you like to research and write their Business Plans

The next section is for the class

What are your favorite products? What products do you depend on the most? What other products help you in your daily routine? Where did these products come from? How did they get their start?

It always starts with an IDEA! Usually it begins with “There has to be a better way!” (frustration) But sometimes it begins with “That’s cool! But, what if we do [this]?” (inspiration) And then, sometimes, it begins with “Ah ha! I know JUST what you need!” (altruism) For discussion: What other types of drivers can lead to ideas?

After the idea…then what?! Designing Prototyping Testing Refining Calculating Funding Investing Promoting Selling Manufacturing Hiring For discussion: What do these mean? For discussion: What other “…ings” can you think of?

How can I make all this happen? It takes investors Your job is to convince investors to loan you money to develop your product What do they expect in return? – A percentage of company ownership – A percentage of company profits – Maybe just simple interest on a loan

So, if I had an idea, where do I begin? ALWAYS start with a business plan! Be able to explain… – What you want to do? – Why does the world need your idea? – How do you want to do it? – What do you need to make it work? (besides money) – How much will it cost to make? – How much will you make by selling it? – Who will you sell it to? – How will you convince people to buy it? – What are the risks you know of that could cause you to fail and how will you avoid them?

You are now going to try to make yourself very very rich You will brainstorm and decide on an idea You will work in teams You will conduct research You will develop a Business Plan You will present your Business Plan to the class You will receive a grade If you come up with a great idea, this plan could make your team rich – it has happened before! But your teacher should get a cut.

Project Teams In groups of six, each team will come up with an idea for a product Each student will assume one role – One CEO (the boss) – Two engineers (designs the product) – One finance officer (keeps track of costs) – One marketing manager (creates ads) – One salesman (finds buyers)

Understand your role!!! CEO – Responsible to make ALL aspects of the business successful (sometimes has to help in other roles) – Makes sure that the investor remains interested and happy! – Makes final decisions when others can’t agree – Kisses many babies (public face)

Understand your role!!! Engineers – Design the product to be affordable – Design the product to be manufacturable – Design the product to be reliable – Design the product to be safe

Understand your role!!! Finance officer – Keep track of all costs (labor, materials, facilities, etc.) – Make sure the company doesn’t over-spend Marketing Manager – Make the product look as attractive as possible to prospective customers Salesman – Find a way to convince people to buy it

Pre-Start Meet with your team Assign roles Brainstorm (in class and outside of class) Your team will write a business plan (make it spectacular!)

For the teacher Business plans can be PowerPoint or Word, but should look “finished”. After all, this is a sales presentation for investors! All parts of the plan should be complete Each team presents their plan to the class, and each person should present their part of the plan It may be fun to ask your local SCORE volunteers (from The Small Business Administration) to come for the presentations and provide feedback, or local businessmen

Before you write your business plan A business plan MUST be compelling. It must tell a story that will make people want to invest in your idea. Tell who, what, when, where, how and why…and don’t forget to tell how much A business plan MUST be honest. Your success will depend on your integrity A business plan MUST be logical and factual. Avoid guesses and magical thinking A business plan MUST be specific and concrete. Avoid generalizations and unsupported facts

The Business Plan Outline Executive Summary (1-2 pages) Company Description Product or Service Market Analysis Implementation Strategy Management Team Financial Analysis Teams may use templates they find on-line, but they should always cite the source

For the teacher The Business Plan can be assigned as a quick project to complete in one or two class periods, but it could also be a two-week project where the teams work together

For the teacher I hope you find this lesson plan to be successful. If you like it, please let me know and I will continue to add modules to it, such as… – Why investors invest – Factors to consider in your product’s design – Thinking strategically while acting tactically – “Killer” products that had unfortunate beginnings – Feel welcome to send me your ideas