3.4 Why is a Business Plan Important?
Entrepreneurship
Marketing
Lesson Plan
Performance Objective
Upon completion of this lesson, the student will be able to explain the need for a well-written business plan.
Specific Objectives
• Students will list and describe the basic elements of a business plan
• Students will describe how to create a business plan
Terms
• Business Plan – A document that describes all the necessary steps for opening and operating a
successful business
Time
This lesson should take one day to complete.
Preparation
TEKS Correlation
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; and
(G) explain the idea of a harvest plan, including selling the business, going public, releasing cash
flow, using private equity, and liquidating the business.
130.344 (c) Knowledge and skills.
(5) The student explains and demonstrates how to meet the needs of a growing organization. The
student is expected to:
(C) describe the role of operations and organization in the growing business.
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130.344 (c) Knowledge and skills.
(6) The student identifies financial and accounting terms and forms. The student is expected to:
(A) clarify and define accounting functions and terms.
(i) assets and types of assets, including cash, accounts receivable, fixed, liquid,
illiquid, and inventory;
(ii) liabilities and types of liabilities;
(iii) accounts payable;
(iv) long- and short-term debt;
(v) owners' equity or net worth;
(vi) balance sheet and balance sheet equation (A = L + OE);
(vii) profit and loss statement
130.344(c) Knowledge and skills.
(24) The student knows that marketing research is a specific inquiry to solve a problem. The student is
expected to:
(C) explain how to use the marketing research process in order to identify potential markets,
analyze demand, forecast sales, and make other decisions.
Interdisciplinary Correlations:
English
110.33 (b) Knowledge and skills.
(1) Reading/Vocabulary Development. Students understand new vocabulary and use it when reading
and writing. Students are expected to:
(A) determine the meaning of grade-level technical academic English words in multiple content
areas (e.g., science, mathematics, social studies, the arts) derived from Latin, Greek, or other
linguistic roots and affixes;
(B) analyze textual context (within a sentence and in larger sections of text) to draw conclusions
about the nuance in word meanings; and
(C) infer word meaning through the identification and analysis of analogies and other
word relationships.
(9) Reading/Comprehension of Informational Text/Expository Text. Students analyze, make
inferences and draw conclusions about expository text and provide evidence from text to support
their understanding. Students are expected to:
(C) make and defend subtle inferences and complex conclusions about the ideas in text and
their organizational patterns.
(11) Reading/Comprehension of Informational Text/Procedural Texts. Students understand how to
glean and use information in procedural texts and documents. Students are expected to:
(B) translate (from text to graphic or from graphic to text) complex, factual, quantitative, or
technical information presented in maps, charts, illustrations, graphs, timelines, tables,
and diagrams.
(12) Reading/Media Literacy. Students use comprehension skills to analyze how words, images,
graphics, and sounds work together in various forms to impact meaning. Students will continue to
apply earlier standards with greater depth in increasingly more complex texts. Students are
expected to:
(A) evaluate how messages presented in media reflect social and cultural views in ways
different from traditional texts;
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(B) evaluate the interactions of different techniques (e.g., layout, pictures, typeface in print
media, images, text, sound in electronic journalism) used in multi-layered media;
(C) evaluate the objectivity of coverage of the same event in various types of media; and
(D) evaluate changes in formality and tone across various media for different audiences and
purposes.
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
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, website links, and review elements of a
business plan.
• Have materials and websites ready prior to the start of the lesson.
Copyright © Texas Education Agency, 2013. All rights reserved.
3
References
• Greene, C. L. (2008). Entrepreneurship ideas in action (4th ed). Mason, OH: Southwestern Cengage.
• Local newspapers
• Business planning websites
Instructional Aids
• “Why a Business Plan is Important” Digital Presentation
• Road to Success Assignment #1
• Business Proposal Presentation Assignment #2
• Research that Community Assignment #3
• Road to Success Assignment #1 Rubric
• Business Proposal Presentation #2 Rubric
• Research that Community Assignment #3 Rubric
• Why a Business Plan is Important Assignment Sheet
• 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 give examples of small business owners in their families and communities. Then
ask students to list the competitors for the small business owners and what strategies have been
implemented to overcome the competition.
•
Ask students to list an example of a business they would like to own and operate. Then ask students to
defend the location they have selected for the business. Who will want to see a business plan for the
business?
•
Ask students to use the Internet to find successful companies that started out as small businesses. Ask
students to research Walter Elias Disney. Then ask students to describe what Walt Disney’s first
business plan included as the vision for his company.
Lesson Introduction
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4
•
Break the students into groups of two. Give each group a business category (examples: restaurant,
hotel, clothing store, car dealership, airline, etc.), and ask the group to discuss the product/service
being produced by the business to sell, objectives and steps for achieving the objectives for the
company, and the background and experience of the people who will be running the business.
•
Develop a handout to give to students that lists the purposes and the importance of a business plan.
Students will refer to this handout when writing their business plans. Allow for space on the handouts
so students can take additional notes.
•
Invite a successful business owner or Small Business Association representative from the community to
explain the process for starting a new business. This individual should also define the business plan and
explain the impact it has for a prospective business.
Outline
MI
Outline
I. The Business Plan
A. The business plan :
1. describes what your business will
produce, how you will produce it,
and who will buy your product or
service;
2. explains who will run your business
and who will supply it with goods;
3. states how your business will win
over customers from competitors
and what your business will do to
keep customers;
4. provides detailed financial
information that shows how your
business will succeed in earning a
profit.
B. Purposes of a Business Plan
1. Explains business idea and how your
product or service will be produced
and sold
a. short-term (the first year)
b. medium-term (two to five
years after startup)
c. long-term (five years in the
future)
Instructor Notes
Ask students to choose a new
business for the community.
Then have teams of students list
the basic elements for items A
1-4.
Give students an outline for a
business plan and then give
information to complete the
business plan for an actual
business. Students will use this
example when writing their own
business plans.
Divide the class into groups of
two students. Ask each student
to list personal characteristics
that they bring to a business.
Copyright © Texas Education Agency, 2013. All rights reserved.
5
2. Sets specific objectives and
describes how your business
expects to achieve them
3. Describes the backgrounds and
experience of the people who will
be running the business
C. Importance of a Business Plan
1. Makes you think about all aspects
of your business
2. May help you secure financing for
your business
3. Helps communicate your ideas to
others
4. Serves as a tool for managing your
business
Ask students to give examples of
individuals who would want to
see the business plan. Then
explain why those individuals
would have a vested interest in
the business plan. Examples of
interested parties include
bankers, insurance agents,
community development
leaders, and other financers.
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 introduce the purposes of an effective plan. Begin the
discussion by talking about the importance of planning. Ask students what tools are important when taking a
vacation. Then explain that the business plan is just as important for a new business as a roadmap is needed
for a vacation. Ask students to draw a roadmap for a successful business. The roadmap should feature the
business plan as the most important element.
Independent Practice
• Road to Success Assignment
Success does not come quickly for most entrepreneurs. It takes time, perseverance, and hard work for
most individuals to succeed. Walter Elias Disney is a good example of an entrepreneur who took the
idea of animated films and developed an entertainment empire through hard work and perseverance.
Put the names of 30+ entrepreneurs in a hat for students to select. Ask students to research the
entrepreneur they selected and design a mural that shows the struggles/challenges that the
entrepreneur overcame to be successful. The mural should begin with the creative idea and continue
through growth of the entrepreneur’s business idea.
•
Business Proposal Presentation
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Ask students to propose a 200-room luxury hotel/convention center for a new town center in a
growing, upscale suburb of a major city. The proposal should include a description of the hotel,
projected customers for the hotel, business that the hotel will attract to the community, and sources
of finance for the new business. The presentation should also include what financial institutions and
venture capitalists will provide startup funds for the hotel. The Internet and other resources will
provide valuable information about major hotel chains and the procedure for building an additional
hotel. Students will present their information to the class in the form of a digital presentation.
•
Research that Community Assignment
Entrepreneurs must conduct thorough research before deciding to locate a business in a particular
community. The research is conducted to learn about the demographics for the community, traffic
flow, tax advantages, growth potential, crime rate, schools, workforce, and other factors. Ask students
to choose a city for a selected business. Then students will design an information folder about the city.
The purpose of the marketing folder is to attract businesses to the community.
Summary
Review
Q: What are the three main purposes of a business plan?
A: The business plan explains your idea and how it will be produced and sold, sets objectives and how they
will be achieved, and describes backgrounds of those running the business.
Q: What is one of the most difficult and important things you will do as an entrepreneur?
A: Writing a business plan is one of the most difficult and important things an entrepreneur
will do.
Q: What is the difference between a short-term, medium-term, and long-term objective in a business plan?
A: Short-term is one year, medium-term is two to five years after startup, and long-term is five years in
the future.
SPUD GAME
Students are grouped into teams of four people. One member (P) draws out a term and pronounces the term.
Another team member (S) spells the term. A third member (D) of the team gives a definition for the term and
the fourth team member (U) uses the term in a sentence to demonstrate understanding of the term.
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.
Copyright © Texas Education Agency, 2013. All rights reserved.
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Enrichment
Extension
• Ask students to visit the website for their community’s chamber of commerce. Students research
what businesses are currently located in the community and then propose an additional new
business for the community. Students must list the top ten reasons for locating the new business in
the community.
•
Ask students to give examples of new product ideas or businesses that have not been successful.
Students must first describe the business idea or product, and then explain why they think the
idea failed.
Copyright © Texas Education Agency, 2013. All rights reserved.
8
3.4 Why is a Business Plan Important?
Entrepreneurship
Marketing
Independent Practice Assignment Sheet
#1 Road to Success Assignment
Success does not come quickly for most entrepreneurs. It takes time, perseverance, and hard work for most
individuals to success. Walter Elias Disney is a good example of an entrepreneur who took the idea of
animated films and developed an entertainment empire through hard work and perseverance. You will select
the name of an entrepreneur from the hat. Then you will research the entrepreneur and design a mural that
shows the struggles/challenges that the entrepreneur overcame to be successful. The mural should begin with
the creative idea and continue through growth of the entrepreneur’s business idea. Your project will be
evaluated using the related rubric.
#2 Business Proposal Presentation
You will propose a 200-room luxury hotel/convention center for the new town center in a growing, upscale
suburb of a major city. Your proposal should include a description of the hotel, projected customers for the
hotel, business that the hotel will attract to the community, and sources of finance for the new business. The
presentation should also include what financial institutions and venture capitalists will provide startup funds
for the hotel. The Internet and other resources will provide valuable information about major hotel chains and
the procedure for building an additional hotel. You will present your information to the class in the form of a
digital presentation. Your project will be evaluated using the related rubric.
#3 Research that Community Assignment
Entrepreneurs must conduct thorough research before deciding to locate a business in a particular
community. The research is conducted to learn about the demographics for the community, traffic flow, tax
advantages, growth potential, crime rate, schools, workforce, and other factors. Choose a city for a selected
business and design an information folder about the city. The purpose of the marketing folder is to attract
businesses to the community. Your project will be evaluated using the related rubric.
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3.4 Why is a Business Plan Important?
Entrepreneurship
Marketing
Assignment #1
Road to Success Assignment Rubric
CATEGORY
20
Thematic Accuracy
Mural fits the theme of the
assignment and all items
are accurately placed on
the background.
Planning/
organization
Time and Effort
Balance and Use of
Space
Student can describe the
intent and plan of
complete mural and how
his/her part will contribute
to the whole. Works with
team to come up with
general plan of what will
be done before beginning.
Class time was used
wisely. Much time and
effort went into the
planning and creation of
the mural. It is clear the
students worked at home
as well as at school.
Use of positive and
negative space creates a
feeling appropriate to the
theme. Objects are placed
for best effect.
Tells the
Entrepreneur's
Story Accurately
Accurate story presented
in the mural.
15
Mural fits the
theme of the
assignment and
most of the
student's items are
accurately placed on the
background.
Student has
carefully planned
his/her part of the mural
and can describe how s/he
will get the work done and
a vision for his/her part.
Gets team input on plan
for his/her contribution
before beginning.
Class time was
used wisely, but it
did not appear
there was much
work done outside
of class.
Use of positive
space is good and
the painting is
relatively
balanced, but
negative space
could be utilized
better to create a
more cohesive
feel.
Solid information
included in the mural.
More information is
necessary for a complete
story.
10
5 or less
The mural fits the
theme of the
assignment.
The mural does not fit
the theme of the
assignment.
Student has planned
his/her part of the
mural and can
Describe how s/he will
get the work done and
a vision for his/her
part. Does not solicit
much group input
when making plan.
Leaps into action
without any evidence
of planning or focus.
Class time was not
always used wisely, but
additional work was
done at home or other
times during the day.
Class time was not
used wisely, and no
additional effort was
put in at other times
or places.
The mural seems to
have a little too much
background or seems a
little too busy. Balance
has not been achieved.
The mural seems
unfinished (too much
empty space), or there
is not enough
balance between
foreground and
background causing it
to seem much too
busy and unfocused.
Mural has some
good information, but
lacks essential
information to give the
entire story.
Deficient amount of
information provided
by the mural resulting
in an incomplete
story.
Total Score ________
Maximum 100 Points
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3.4 Why is a Business Plan Important?
Entrepreneurship
Marketing
Assignment #2
Business Proposal Presentation Rubric
CATEGORY
Comprehension
Enthusiasm
Preparedness
Speaks Clearly
Stays on Topic
20
15
10
5 or less
Student is able to
accurately answer
almost all questions
posed by classmates
about the topic.
Facial expressions
and body language
generate a strong
interest and
enthusiasm about
the topic in others.
Student is able to
accurately answer a
few questions posed
by classmates about
the topic.
Facial expressions
and body language
are used to try to
generate enthusiasm,
but seem somewhat
faked.
The student is
somewhat prepared,
but it is clear that
rehearsal was
lacking.
Speaks clearly and
distinctly most (9485%) of the time, but
mispronounces one
word.
Student is unable to
accurately answer
questions posed by
classmates about the
topic.
Very little use of
facial expressions or
body language. Did
not generate much
interest in topic
being presented.
Speaks clearly and
distinctly all (10095%) the time, with
correct
pronunciation .
Student is able to
accurately answer
most questions
posed by classmates
about the topic.
Facial expressions
and body language
sometimes generate
a strong interest and
enthusiasm about
the topic in others.
Student seems
prepared, but
student might have
needed a couple
more rehearsals.
Speaks clearly and
distinctly all (10095%) the time, but
mispronounces one
word.
Student stays on
topic all (100%) of
the time.
Student stays on
topic most (99-90%)
of the time.
Student stays on
topic some (89%75%) of the time.
Student is completely
prepared and has
obviously rehearsed.
Total Score ________
Maximum 100 Points
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Student does not
seem at all prepared
to present.
Often mumbles or
cannot be
understood OR
mispronounces more
than one word.
It was hard to
determine the topic.
3.4 Why is a Business Plan Important?
Entrepreneurship
Marketing
Assignment #3
Research that Community Rubric
CATEGORY
Attractiveness &
Organization
Writing - Grammar
Content Accuracy
Sources
Overall Impact
20
15
10
The folder has
attractive formatting
and well-organized
information.
The folder has
attractive formatting
or well-organized
information.
There are no
grammatical mistakes
in the folder.
There are no
grammatical mistakes
in the folder after
feedback from an
adult.
All facts in the folder
are accurate.
99-90% of the facts
are accurate.
89-80% of the facts in
the folder are
accurate.
Fewer than 80% of
the facts in the folder
are accurate.
Careful and accurate
records are kept to
document the
sources of 95-100% of
the facts and graphics
in the folder.
Folder of materials
gave clear
information about the
community that could
be used to make
important business
decisions.
Careful and accurate
records are kept to
document the
sources of 94-85% of
the facts and graphics
in the folder.
Careful and accurate
records are kept to
document the
sources of 84-75% of
the facts and graphics
in the folder.
Sources are not
documented
accurately or are not
kept on many facts
and graphics.
At least 80% of the
material in the folder
could be used to
make important
business decisions.
Only 50% of the
material in the folder
could be used to
make important
business decisions.
Less than 50% of the
material in the folder
could be used to
make important
business decisions.
The folder’s
formatting and
organization of the
material is confusing
to the reader.
There are one to two
grammatical mistakes
in the folder even
after feedback from
an adult.
Total Score ________
Maximum 100 Points
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12
5 or less
The folder is lacking
both attractiveness
and organization.
There are several
grammatical mistakes
in the folder even
after feedback from
an adult.