3.2 How to Create an Effective Business Plan
Entrepreneurship
Marketing
Lesson Plan
Performance Objective
Upon completion of this lesson, the student will describe resources for writing an effective business plan.
Specific Objectives
• Students will identify resources for new business ideas.
• Students will recognize different business opportunities.
• Students will identify their own personal goals.
Terms
• Small Business Administration (SBA) – An independent agency of the federal government that was
created to help Americans start, build, and grow businesses
• Small Business Development Center (SBDC) – Provides management assistance to current and
prospective small business owners
• Service Corps of Retired Executives (SCORE) – Made up of more than 10,500 retired executives who
volunteer their time to provide entrepreneurs with real-world advice and knowledge
• Trade association – Made up of professionals in a specific industry
Time
This lesson should take five to seven days to complete.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result
in the elimination of any or all of the TEKS listed.
130.344 (c) Knowledge and skills.
(3) The student identifies the importance of a well-written business plan. The student is expected to:
(A) categorize a business plan and the need for a well-orchestrated business plan;
(B) research business plan outlines, resources, and templates using web search engines;
(C) explain a marketing plan, including price competition, non-price competition, market
analysis, competition, marketing research, market segmentation, demographics, and
sales forecasting;
(D) identify a legal plan, including the appropriate form for legal organization, including sole
proprietorship, partnership, corporation, and S corporation;
(E) describe a leadership team;
(F) develop a financial plan;
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1
Interdisciplinary Correlations
English
110.42(b) Knowledge and skills.
(6) Reading/word identification/vocabulary development. The student uses a variety of strategies to
read unfamiliar words and to build vocabulary. The student is expected to:
(A) expand vocabulary through wide reading, listening, and discussing; and
(B) rely on context to determine meanings of words and phrases such as figurative
language, idioms, multiple meaning words, and technical vocabulary.
(7) Reading/comprehension. The student comprehends selections using a variety of strategies. The
student is expected to:
(F) identify main ideas and their supporting details;
(G) summarize texts; and
(J) read silently with comprehension for a sustained period of time.
Occupational Correlation (O*Net – www.onetonline.org/)
Job Title: General and Operations Manager
O*Net Number: 11.1021.00
Reported Job Titles: Operations Manager, General Manager (GM), Director of Operations, Plant Manager,
Store Manager, Facilities Manager, Plant Superintendent, Vice President of Operations, Warehouse Manager,
Chief Operating Officer (COO)
Tasks
•
•
•
•
•
•
•
•
•
•
Oversee activities directly related to making products or providing services.
Direct and coordinate activities of businesses or departments concerned with the production, pricing,
sales, or distribution of products.
Review financial statements, sales and activity reports, and other performance data to measure
productivity and goal achievement and to determine areas needing cost reduction and program
improvement.
Manage staff, preparing work schedules, and assigning specific duties.
Direct and coordinate organization's financial and budget activities to fund operations, maximize
investments, and increase efficiency.
Establish and implement departmental policies, goals, objectives, and procedures, conferring with board
members, organization officials, and staff members as necessary.
Determine staffing requirements, and interview, hire and train new employees, or oversee those
personnel processes.
Plan and direct activities such as sales promotions, coordinating with other department heads as required.
Determine goods and services to be sold, and set prices and credit terms, based on forecasts of customer
demand.
Locate, select, and procure merchandise for resale, representing management in purchase negotiations.
Soft Skills: Monitoring, Coordination, Social Perceptiveness, Active Learning, Judgment and Decision Making
Accommodations for Learning Differences
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It is important that lessons accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
• Review and familiarize yourself with the terminology and resources.
• Have materials and websites ready prior to the start of the lesson.
References
• Greene, C. L. (2008). Entrepreneurship ideas in action (4th ed). Mason, OH: Southwestern Cengage.
• Kourilsky, M. (1999). Making a job: A basic guide to entrepreneurship readiness. Kansas City, MO:
Kauffman Foundation for Entrepreneurial Leadership.
• Local newspapers
• Small Business Administration (SBA) www.sba.gov
• Service Core of Retired Executives (SCORE) www.score.org
Instructional Aids
• “How to Create an Effective Business Plan” Digital Presentation
• How to Create an Effective Business Plan Assignment Sheet
• Inform Assignment #1
• Inform Rubric
• Location, Location, Location Assignment #2
• Location, Location, Location Rubric
• Entrepreneurship Newscast Assignment # 3
• Entrepreneurship Newscast Rubric
• Internet
Materials Needed
• Construction paper
• Scissors
• Glue
• Poster board
Equipment Needed
• Computers (for students to complete projects)
• Projector (for digital presentation)
Introduction
Learner Preparation
• Ask students to prepare a list of business leaders in the community who they would consult before
writing a business plan. Ask students why they have selected the leaders on their list.
Copyright © Texas Education Agency, 2013. All rights reserved.
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•
•
Ask students to use the Internet to research the Small Business Administration (SBA), the Small
Business Development Centers (SBDC), and the Service Corps of Retired Executives (SCORE). Then ask
students to explain why each of these organizations are important resources to investigate when
writing a business plan.
Write “Mistakes in Business Planning” on the board. Then ask students to give examples of mistakes
that are commonly made when preparing business plans. Examples of mistakes should include
unrealistic financial projections, undefined target market, poor research, ignored competition,
inconsistencies in the business plan, inadequate funding, and poor advice from others.
Lesson Introduction
• Since 1964, 7.5 million entrepreneurs have been counseled by SCORE or attended SCORE workshops.
Ask students why it would be a good idea for them to contract SCORE before writing their
business plans.
• Ask students if they have ever faced a project that was confusing to start. Then explain that starting a
business has a lot of “unknowns.” Individuals start with an idea and then have to determine how to
turn the idea into a business.
• Make students aware that preparing a business plan is not an easy task. Writing a business plan can
take 50 to 100 hours. Emphasize the importance of conducting research to find all the information
required for a business plan.
• Ask students to use the Internet to research a trade association related to the type of business they
wish to pursue. How can the trade association help them get off to a better successful business start?
Outline
MI
Outline
I. Research the Business Plan
A. Convince readers that you have a
practical business idea
B. Pull together the information you
need for your business plan by
conducting research
1. Leasing space or equipment
2. Determining prices to charge for
products and services
3. Dealing with competitors
C. Small Business Administration (SBA)
1. Provides management
assistance to current and
prospective small business
owners
Instructor Notes
Break the class into teams of two
students. Ask each group to
write a business idea. Then have
the teams exchange ideas. Each
team must rate the probability
of success for each idea.
Copyright © Texas Education Agency, 2013. All rights reserved.
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2. Counselors provide aid, counsel,
and assistance to protect the
interests of small business
concerns, preserve free
competitive enterprise, and to
maintain and strengthen the
overall economy of our nation.
D. Small Business Development Centers
(SBDC)
1. Provides management assistance to
current and prospective small
business owners
2. Counselors provide free one-onone assistance in developing a
business plan
3. Provide inexpensive workshops on
topics to help develop a business
plan
4. Formed as a cooperative effort of
the private sector, educational
community, and federal, state,
and local governments
5. Enhance economic development by
providing small businesses with
training and technical assistance
E. Service Corps of Retired Executives
(SCORE)
1. More than 10,500 retired
executives who volunteer their
time to provide entrepreneurs
with real-world advice and
knowledge
2. Set up a meeting with a SCORE
volunteer, work with a SCORE
volunteer over the Internet, or
attend a workshops sponsored by
SCORE
F. Other Sources of Help
1. Chamber of Commerce
2. Trade Associations – organizations
made up of professionals in a
specific industry
3. Professional Consultants – experts
available to hire
4. Financial institutions
Show students an example of a
winning business plan from
national DECA (www.deca.org).
Then ask students to explain
how the plan can be enhanced
by consulting the SBA, SBDC, and
SCORE.
Ask students why members of
SCORE are good resources for
someone writing a business
plan. Students must understand
the wealth of information
available from someone who has
already operated a successful
business.
Ask students to use the Internet
to research the chamber of
commerce for a city where they
would like to locate a business.
Does the website include links to
assist new business start-up
companies for the community?
What features of the community
are good for a new business?
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G. Print Resources
1. Books
2. Magazines
3. SBA publications
H. Online Resources
1. SBA, SBDC, and SCORE websites
2. Franchise web sites
II. Mistakes in Business Planning
A. Unrealistic Financial Projections
B. Undefined Target Market
C. Poor Research
D. Ignored Competition
E. Inconsistencies in the Business Plan
Ask students why it is important
to take time before jumping into
a business plan. Explain how
60% of businesses fail within five
years. Then describe how
research can eliminate some of
the pitfalls experienced by
business failures.
Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
Application
Guided Practice
Using the digital presentation, the teacher will describe the numerous resources and organizations that are
available to help entrepreneurs start their business dreams.
Invite guest speakers from SBA, SBDC, SCORE, and the Chamber of Commerce to help students establish a
realistic picture of networking necessary for starting a business. The professionals from SBA, SBDC, and SCORE
can serve as valuable resources in the classroom once students start writing their actual business plans.
Independent Practice
• Inform Assignment
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 and making a digital presentation. Group presentations will be
evaluated using a rubric.
• Location, Location, Location Assignment
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
Copyright © Texas Education Agency, 2013. All rights reserved.
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•
the community, conduct research, observe the location, and write a report explaining why the location
is a good/poor choice for a business. The written report will be evaluated using a related rubric.
Entrepreneurship Newscast Assignment
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. Presentations will be evaluated using a related rubric.
Summary
Review
Q: What are some of the resources available to help develop a business plan?
A: SBA, SBDC, SCORE, Chambers of Commerce, trade associations, professional consultants, financial
institutions, trade magazines, and government publications are good sources of information.
Q: What are common mistakes that are made in business plans?
A: Common mistakes include unrealistic financial projections, undefined target market, poor research,
ignored competition, and inconsistencies in the business plan.
Q: Why must research be conducted when writing a business plan?
A: The business plan must convince readers that you have a practical business idea backed by information and
data from objective sources.
Evaluation
Informal Assessment
• Instructor will observe students during Independent Practice.
• Instructor will assist students as needed.
Formal Assessment
Use the assigned rubrics to evaluate the three Independent Practice Assignments.
Enrichment
Extension
• Students will write a business plan using the Business Plan document (provided). The business plan
should be typed and written in a professional manner. The students are to choose a product that they
are interested in and create a business plan for that product. They are to conduct research on the
Internet using the resources that were discussed in this lesson.
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3.2 How to Create an Effective Business Plan
Entrepreneurship
Marketing
Independent Practice Assignment Sheet
#1 Inform Assignment
The class will be split into five groups. Each group will use the Internet to research SBA, SBDC, SCORE, the
chamber of commerce for your community, and professional organizations representing the career interests
in your group. Each group is responsible for teaching the class about the organization they have researched.
Digital group presentations will be evaluated using a rubric.
#2 Location, Location, Location Assignment
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. 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.
#3 Entrepreneurship Newscast Assignment
Locate two articles in the library or on the Internet about successful entrepreneurs and write the Top Ten
Points for each article. You will share their information in class, using digital presentations as a newscast.
Digital presentations will be evaluated using a rubric.
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3.2 How to Create an Effective Business Plan
Entrepreneurship
Marketing
Assignment #1
Inform Rubric
CATEGORY
20
15
Content
Shows a full
understanding of the
topic.
Shows a good
understanding of the
topic.
Comprehension
Student is able to
accurately answer
almost all questions
posed by classmates
about the topic.
Student is completely
prepared and has
obviously rehearsed.
Preparedness
Speaks Clearly
Enthusiasm
Student is able to
accurately answer
most questions posed
by classmates about
the topic.
Student seems pretty
prepared, but student
might have needed a
couple more
rehearsals.
Speaks clearly and
Speaks clearly and
distinctly all (100distinctly all (10095%) the time, and
95%) the time, but
mispronounces no
mispronounces one
words.
word.
Facial expressions and Facial expressions and
body language
body language
generate a strong
sometimes generate a
interest and
strong interest and
enthusiasm about the enthusiasm about the
topic in others.
topic in others.
10
5 or less
Shows a good
understanding of
parts of the topic.
Does not seem to
understand the topic
very well.
Student is able to
accurately answer a
few questions posed
by classmates about
the topic.
The student is
somewhat prepared,
but it is clear that
rehearsal was lacking.
Student is unable to
accurately answer
questions posed by
classmates about the
topic.
Student does not
seem at all prepared
to present.
Speaks clearly and
distinctly most (9485%) of the time.
Mispronounces no
more than one word.
Facial expressions and
body language are
used to try to
generate enthusiasm,
but seem somewhat
faked.
Often mumbles or
can not be
understood OR
mispronounces more
than one word.
Very little use of facial
expressions or body
language. Did not
generate much
interest in topic being
presented
Total Score ________
Maximum 100 Points
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3.2 How to Create an Effective Business Plan
Entrepreneurship
Marketing
Assignment #2
Location, Location, Location Rubric
CATEGORY
Organization
Sources
Amount of
Information
Quality of
Information
Defined the Location
20
15
Information is very
organized with wellconstructed
paragraphs and
subheadings.
All sources
(information and
graphics) are
accurately
documented in the
desired format.
Information is
organized with wellconstructed
paragraphs.
Information is
organized, but
paragraphs are not
well-constructed.
The information
appears to be
disorganized.
All sources
(information and
graphics) are
accurately
documented, but a
few are not in the
desired format.
All topics are
addressed and most
questions answered
with at least two
sentences about
each.
Information clearly
relates to the main
topic. It provides one
to two supporting
details and/or
examples.
Good description of
the location that
lacks one or two key
elements.
All sources
(information and
graphics) are
accurately
documented, but
many are not in the
desired format.
All topics are
addressed, and most
questions answered
with one sentence
about each.
Some sources are not
accurately
documented.
Information clearly
relates to the main
topic. No details
and/or examples are
given.
Information has little
or nothing to do with
the main topic.
Incomplete
description of the
location.
Description lacked
quality information
about the location
All topics are
addressed and all
questions answered
with at least two
sentences about
each.
Information clearly
relates to the main
topic. It includes
several supporting
details and/or
examples.
Thorough description
of location's
accessibility, parking,
and consumer traffic.
10
Total Score ________
Maximum 100 Points
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10
5 or less
One or more topics
were not addressed.
3.2 How to Create an Effective Business Plan
Entrepreneurship
Marketing
Assignment #3
Entrepreneurship Newscast Rubric
CATEGORY
Accuracy of
Facts
Research
Point of View Purpose
Awareness of
Audience
Group Work
20
All supportive facts are
reported accurately
(three of three).
Group researched the
subject and integrated
three or more
selections from their
research into their
newscast.
Newscast establishes a
purpose at the
beginning and
maintains that focus
throughout—cohesive
newscast.
All students in the
group can clearly
explain why they felt
the vocabulary, audio,
and graphics they chose
fit their intended
audience.
15
Almost all facts are
reported accurately
(two of three).
Group researched the
subject and
integrated two
"tidbits" from their
research into their
newscast.
Establishes a purpose
at the beginning, but
occasionally wanders
from that focus.
The group functioned
exceptionally well. All
members listened to,
shared with, and
supported the efforts of
others. The group (all
members) was almost
always on task.
The group functioned
pretty well. Most
members listened to,
shared with, and
supported the efforts
of others. The group
(all members) was
almost always on
task.
All students in group
can explain why they
felt the vocabulary,
audio, and graphics
they chose fit their
intended audience.
10
One fact is reported
accurately.
Group researched the
subject and integrated
one "tidbit" from their
research into their
newscast.
5 or less
No facts are reported
accurately OR no facts
are reported.
Either no research was
done or it was not clear
that the group used it in
the newscast.
The purpose is
somewhat clear, but
many aspects of the
newscast seem only
slightly related.
It was difficult to figure
out the purpose of the
newscast.
There was some
awareness of the
audience, but not all of
the students can
describe how the
vocabulary, audio, and
graphics they chose fit
their intended audience
The group functioned
fairly well, but was
dominated by one or
two members. The
group (all members)
was almost always on
task.
Limited attention to
audience in designing
newscast AND/OR one or
fewer members of the
group can explain how
the elements relate to
the audience.
Total Score ________
Maximum 100 Points
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Some members of the
group were often off
task AND/OR were
overtly disrespectful to
others in the group
AND/OR were typically
disregarded by other
group members.
3.2 How to Create an Effective Business Plan
Entrepreneurship
Marketing
How to Create an Effective Business Plan Assignment Sheet
General Instructions
Decide what business you are going into; the business should be something you’re interested in or relate to a
hobby that you have, which will make it more interesting for you to research. You may pattern your business
after an existing business or be creative and do something you’ve never tried before. You may use your own
drawings, magazines, and computer programs to enhance the material.
Cover page
The cover of your report should include the logo or storefront of your business. It needs to include the name
of your business and your names. Remember, this is the first image that someone has of your business, so
design, color, neatness, etc. is essential.
Description of Business
This section will be a description of your business. This section should include the name of the business, where
it will be located, and the type of product or service that you will be offering. This is a high level overview of
the business.
Type of Business Ownership
This is a description of your business ownership. The section should be titled with the type of ownership you
will be operating under and whether it is a service or product related business. Descriptions must be in
complete sentences and words must be spelled correctly. Depending on the kind of business ownership you
choose, be sure to include all the information that is requested.
a)
Sole Proprietorship – Why did you choose to be a sole owner? Why did you choose this kind of
business (interest, talent, hobby, following in relative’s footsteps, etc.)? What would be the
advantages and disadvantages of this type of ownership?
b)
Partnership – Why did you choose this kind of ownership? Describe why you chose this kind of
business (interest, talent, hobby, following in relative footsteps, etc.). How many partners do you
have? What is each person bringing into the business that will be beneficial? What are the
advantages and disadvantages of this type of ownership?
c)
Corporation – Explain why you choose to be involved in a corporation and why you chose the kind
business you did. Write the “certificate of incorporation” and the duration of corporation
formation. List your incorporators and what types of stock you will issue. Who are your directors?
What are the advantages and disadvantages of this type of ownership?
d)
S Corporation – Why did you choose this type of business? Write the “certificate of incorporation”
and the duration of corporation formation. List your incorporators and what types of stock you will
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issue. Who are your directors? What are the advantages and disadvantages of this type of
ownership? include who will be your officers, and discuss the tax implications for the individual.
Location
Either draw or print out a map of the area where you will locate your business. The map should include a key
for major landmarks, major streets, schools, or residential areas, business districts, etc.
Product/Service Description
Describe in detail the products or services that you will be offering. Either draw or copy and paste pictures of
your products. If you are offering a service, you will need to find some way to illustrate your service.
Items needed to Run the Business
Insert a table with three columns; label the columns like the chart below.
Selling Needs
Building Needs
Miscellaneous Needs
A Successful Business
Describe how you intend to make your business a success—what will you do more or better than your
competitors (Ex: services, coupons, specials)? Why did you choose this location and how will it help you
become successful?
Promotion
Design an advertisement for your grand opening. Use whatever special effects you can to accompany your
image. Be sure your advertisement gives your name, location, hours, services and/or products you offer, and
specials for the opening.
Employees
How many employees will you hire? What are their specific job descriptions? What kind of employee
characteristics or qualifications will you look for? Write a want advertisement for one of the positions.
Business Social Responsibility
Explain your business’ social responsibility to your customers and your community. Select a project your
business will participate in to help the community. Describe how you will support the project.
Startup Costs
Develop a projected start-up cost budget for your first year of business. Include building, land, equipment,
supplies, furniture, and any other expense that you need to start up the business.
Marketing Plan
Describe who your target market is. Include age groups, demographic and psychographic groups, and any
other characteristic that will help you succeed with selling your product.
Describe where you will advertise your business or how you will promote it. Be specific about events such as
what television shows and times you will advertise, radio stations and times, etc.
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Advertising Slogan
Develop an advertisement slogan for your company. Make it original and catchy for the consumer to
remember.
Include any other usefully information about your business that might make it more attractive to the
investors.
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