February 28, 2011 Objective: Students will identify the purpose/components of the Balance Sheet & Income Statement.

Unit 5 – Major Assignment The last two Units we have worked on sections of the Business Plan as your Major Assignment. Unit 5 is a change of pace which will require that you interview an Entrepreneur. This interview is due to Mrs. Niebur next Monday March 7th. Unit 5 is due to Metro Sunday, March 13th.

Unit 5 Major Assignment ENTREPRENEUR INTERVIEW: Each student will complete a learning interview with an entrepreneur (start-up, successful, failed, retired) presently doing business in the area of your study OR within the industry you wish to have a business someday. A 2-page written summary will be submitted to the ASSIGNMENT link for grade reflecting upon your conversation and showing in your own words what you learned (Do NOT submit a diary of the conversation as this only puts the Instructor present in the room during the Interview. This is to be a reflection paper addressing what you learned (not heard). Therefore, diaries showing the questions asked and just the actual answers given will not be accepted for grade. Rather, from the conversation; what did you learn?) Please send a hand-written Thank You to the individuals that you met with for this assignment within 2 business days of the actual meeting. Interviews with family members, present or past employers are not allowed unless approved ahead of time by Instructor. (the goal is to meet with entrepreneurs not already in your circle of contacts). NOTE:  You cannot use the same person or people within the same organization that was (or will be) used as the subject for the Successful ENTR presentation assignment for this Entrepreneur Interview assignment.  The goal is to research, converse and learn from a new individual to gain additional exposure and ideas.

Week 7 – Successful Entrepreneur Power Point Complete a minimum 5 slide PowerPoint (PPT) presentation on a successful entrepreneur that you admire, past or present that will be posted to the assignment link for the entire class to review by the assigned deadline. It is also recommended to use books and Internet resources other than your text that contain information regarding the entrepreneur you’ve chosen. One entrepreneur per person per class as your PPTs will be posted for all students to review publicly. Post the name of your chosen successful entrepreneur in response to the discussion thread that will be opened inside the “Instructor’s Notes” discussion board (or for in-class students; sign up with your Instructor). Please sign up immediately – first come, first served. Research to present: Person’s history How did the business idea first start up? What skills did the entrepreneur use for success? Last great learning tips gleamed from the entrepreneur? NOTE:  You cannot use the same person or people within the same organization that was (or will be) interviewed in the Entrepreneur Interview assignment for this Successful ENTR Presentation.  The goal is to research and learn from a new individual to gain additional exposure and ideas. Be sure to focus your presentation on the actual Entrepreneur. This is not to be a summary presentation on the actual business. It is highly recommended to provide a picture of the entrepreneur on the first slide to enable your peer students to “see” the actual person.

Sample Entrepreneurial Interview Questions: Do you have a business plan? And if so, how often do you strategically update your plan? Describe how you started your own business? What type of legal ownership is your business? Why did you choose this particular structuring? Describe your background that added to your entrepreneurial success? (Ex: prior work experience, education, etc…) What was the biggest challenge(s) in getting your business open and how did you overcome it? What is the biggest challenge that you face today and how are you managing it? What are your personal strengths that you add to the business? How do you uniquely differentiate yourself (or your products) from your competitors? Who is your target market? How do you reach (market) to them? What local business resources exist that you utilize? (Ex: Chamber, SBA, etc…) What items do you outsource and why? (Ex: Accountant, lawyer, etc…) Do you have employees and if so how do you attract and retain them? What would you consider an ethical issue in business? What is your business exit plan? What advise would you give another would-be entrepreneur?

Financial Statements There are two principal financial statements of any business: The Balance Sheet and the P&L Statement.

Balance Sheet The balance sheet is a financial statement that shows the condition of your business as of a fixed date. It is most effectively done at the end of every accounting period. The balance sheet can be liked to a still photograph. It is the picture of your businesses’ financial condition at a given moment and shows whether your financial position is strong or weak. A balance sheet lists a business’s assets, liabilities, and net worth (or capital). Assets are everything your business owns that has monetary value. Liabilities are the debts owed by the business to any creditors. The net worth (or owner's equity) represents the cumulative profits and loses of the company plus or minus any equity depots of withdrawals. Assets = Liabilities + Net Worth

Profit & Loss Profit and loss statement (P&L or income statement). This financial statement shows your business financial activity over a specific period of time. Unlike the balance sheet, a P&L statement can be liked to a moving picture. It shows where your money came from and where it was spent over a specific period of time. A P&L statement should be prepared at the closed of each month. The totals from your revenue and expense journal are transferred to the corresponding columns of the P&L statement. Comparison of the P&L statements from several years it’ll reveal such trends in your business as high revenue periods, effective advertising times, increases or decreases in profit margins, and a host of other valuable information. Just as the balance sheet has an accepted format, a P&L statement must contain certain categories in a particular order.

Assignment 5.2 The assignment: Create a cohesive 250 word essay summarizing the following: What is a Balance Sheet? How do you know if it is “in balance”? What is an Income Statement? How would one use the information on the statement to make important decisions?