Student OPEN. Student Workbook

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Percival Ford
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here you will find... Time line...2 Teamwork...3 Goals...4 Planning...5 Budgeting...6 Finding an Investor...8 Choosing a Site...9 Advertising...10 Market Research...11 Writing a Business Plan.

Starting your own business can be one of the most rewarding and challenging things you do. You can gain great knowledge through DECA, FBLA, and classes such as Marketing and Advanced Retail Sales.

Local businesses will help you succeed. Brandman University and other businesses you frequent offer scholarships, advice, encouragement, and support as you explore your options.

3 here you will find... Time line...2 Teamwork...3 Goals...4 Planning...5 Budgeting...6 Finding an Investor...8 Choosing a Site...9 Advertising...10 Market Research...11 Writing a Business Plan...12 Profit & Loss Statement...13 Running Your Business...14 Future Plans...15 Awards...16 Glossary...18 Questions...18 Welcome! You ve just taken the first steps to becoming an entrepreneur. Starting your own business can be one of the most rewarding and challenging things you do. You can gain great knowledge through DECA, FBLA, and classes such as Marketing and Advanced Retail Sales. Unfortunately, no class in the world prepares you for the day to day surprises. Throughout this competition, you will gain the experience to go from the classroom to reality and have fun! Local businesses will help you succeed. Brandman University and other businesses you frequent offer scholarships, advice, encouragement, and support as you explore your options. They re waiting to see how you ll take your creativity and skills to become your own boss. Any student of high school age can participate. To get more from this guide, follow each step and do the activities. After the Entrepreneur Challenge, you ll have a record of your achievement. Have fun! Be creative! Get ready to make lots of money! 1

time line October Final Wednesday Team applications are due to the EDC by 4 PM.

net November Weeks 1-2 You have two weeks to work with your team to craft a business plan, complete market research, find

November Week 3 Week of the competition!

Now is the time to put all your hard preparations to work! No sales will be accepted before this week.

4 time line October Final Wednesday Team applications are due to the EDC by 4 PM. Submit competed applications, announcing team members and school faculty or staff advisor, to icedc@whidbey.net November Weeks 1-2 You have two weeks to work with your team to craft a business plan, complete market research, find investors, and prepare your product or service. This workbook will serve as a guide through these steps. November Week 3 Week of the competition! Sell your product or deliver your service, compile financial reports, and complete any agreements with investors. Now is the time to put all your hard preparations to work! No sales will be accepted before this week. November Fourth Monday business plans and financial reports, initialed by the team s advisor or mentor as accurate, to icedc@whidbey.net by 4 PM. December* Awards dinner. You get five minutes to brag about your business! Winners will be announced and presented with their awards. Invite your friends, families and mentors to witness your accomplishment! 2 *date to be announced

teamwork Business often calls for partnerships of some sort. Are you disorganized? Find someone who loves to organize things around them. Math not your thing?

Throughout the Entrepreneur Challenge, you will work in a team of 3-5 students. Recruit your friends or fellow club members to be a part of your team.

energetic about the business as you are. List your team members and important contact information below.

5 teamwork Business often calls for partnerships of some sort. Are you disorganized? Find someone who loves to organize things around them. Math not your thing? Someone you know loves numbers. Are you shy and uncomfortable talking to strangers? Work with someone who thrives talking to people. Throughout the Entrepreneur Challenge, you will work in a team of 3-5 students. Recruit your friends or fellow club members to be a part of your team. When building your team, keep an eye out for compatible personalities, someone who has skills or resources you need, or someone who s just as enthusiastic and energetic about the business as you are. List your team members and important contact information below. Team Members: Team Captain: (The team captain will be responsible for turning in the application at the beginning and the business plan and financial documents at the end.) Team Member: Team Member: Team Member: Team Member: Think: Who is a school faculty or staff person I can go to if I have questions or disagreements with my team? My business mentor is: Successful entrepreneurs and business owners surround you. Your team will have a business mentor from your community you can go to with questions, ideas, and actions. They re there to help you succeed! 3

Does your favorite club need new equipment or uniforms? Is there a soccer team you want to join or a summer camp you want to attend?

6 goals What are some of your biggest goals in life? To be a pilot, own a restaurant, travel the world? Establishing goals and reaching them is what sets highly successful people apart from those who just float through life. What are your short-term and long-term goals? Does your favorite club need new equipment or uniforms? Is there a soccer team you want to join or a summer camp you want to attend? Do you plan to work hard and go to a national DECA or FBLA competition? You have the power to earn the money to buy the things you want. The Entrepreneur Challenge is a great way to put your goals into action. First you set a goal, then you make a plan to reach your goal. Next, work the plan and reap the reward - the achievement of your goal. All profits from your team s business will go to the school activity or club of your team s choice. The money you make during this competition will help you have fun and go far throughout the school year. What would you like to achieve with the Entrepreneur Challenge? Describe what you will do with your earnings: 4 How much money will you need to get what you really want? What is your financial goal? $ Goal: the specific task or target a person aims to achieve Discuss: Talk about a time you wanted something really bad but did not have enough money to buy it.

planning What does it mean to be an entrepreneur? Entrepreneurs look for needs in the community and develop a business or an idea to meet those needs.

You have already set your goal. Now you should make your plan. A business has to be involving, it has to be fun and it has to exercise your creative instincts.

7 planning What does it mean to be an entrepreneur? Entrepreneurs look for needs in the community and develop a business or an idea to meet those needs. Think about this: when people are home-bound with an illness or injury, they don t have the ability to go to the store or do other necessary errands. This is the need that your business could address. You have already set your goal. Now you should make your plan. A business has to be involving, it has to be fun and it has to exercise your creative instincts. -Richard Branson, founder of Virgin Group My Business Business owners (team members): Name of your business: What will your business sell? Entrepreneur: a person who starts a business assuming the risk for the purpose of making a profit Business: the selling of goods or services for the sake of earning a profit How will you make your business reflect your interests? How will you set your business apart from others? Think: What ideas do you have for making your business stand out? 5

budgeting Business Supplies Shopping List Don t forget supplies for marketing as well, such as paper and paint for posters and banners!

There are two types of supplies you will need for your business: capital equipment and consumables.

Consumables are supplies that are used only once and must be replaced to keep your business going, like paper plates for a bake-sale business.

8 budgeting Business Supplies Shopping List Don t forget supplies for marketing as well, such as paper and paint for posters and banners! Every business starts with a budget. A budget is your plan for how much you will spend and how much you plan to make. There are two types of supplies you will need for your business: capital equipment and consumables. Capital equipment consists of items that you can use again and again, like buckets and sponges for a car-washing business. Consumables are supplies that are used only once and must be replaced to keep your business going, like paper plates for a bake-sale business. There are three ways to get your supplies: borrow, barter, or buy. From the list above, categorize your supplies and insert them in the worksheet below. Worksheet One - Supplies Consumables Quantity x Unit Cost = Total Cost Capital Equipment Total Consumables (U) $ 6 Total Equipment (A) $ Total Supplies (U+A=S) $ Interest on Loan, if any (from p.8) (I) $ Total Expenses (S+I=T) $

Budget: a list of all planned expenses and revenues Capital Equipment: items used over and over again Consumables: supplies that once used are gone or no longer usable Revenue: all money that comes

Now that you know the cost of your business supplies, it is time to estimate revenue, set your price and figure out how much of service or product you need to sell to reach your goal.

It is a good idea to be generous in your estimation of expenses (overestimate) and be conservative in your estimate of revenue. You may need to revise both worksheets to achieve your goal.

(L) Based on your total expenses (T) on the previous (T L = C) page, what is your cost per unit (C)? What price will you sell your units for? (R) What is your profit per unit?

9 Budget: a list of all planned expenses and revenues Capital Equipment: items used over and over again Consumables: supplies that once used are gone or no longer usable Revenue: all money that comes into your business Expenses: all costs related to your business Profit: the money gained from sales after expenses, interest, and loans are paid I must sell. units to meet my goal. Now that you know the cost of your business supplies, it is time to estimate revenue, set your price and figure out how much of service or product you need to sell to reach your goal. The goal of any business is to minimize expenses and maximize sales. This is the formula for making the largest profit. It is a good idea to be generous in your estimation of expenses (overestimate) and be conservative in your estimate of revenue. You may need to revise both worksheets to achieve your goal. Worksheet Two - Budget Notes What is your product or service (unit)? How much of your product or service are you going to sell? (L) Based on your total expenses (T) on the previous (T L = C) page, what is your cost per unit (C)? What price will you sell your units for? (R) What is your profit per unit? (P) (R - C = P) What is your financial goal from page 4? (G) How many units do you need to sell to meet your (G P = N) goal? (N) Do your supplies cover the number of units you must sell to meet your goal? If not, buy more supplies, or if you feel that you cannot sell this many units, you should increase your price or reduce your supplies. Until you are comfortable with your plan, revise these worksheets. Put your final answer below. Price per unit: $ 7

10 finding an investor Congratulations on completing your budget! Budgeting is a skill that you will use throughout your life. Now that you have your budget in mind, you need to figure out how you will pay for supplies. Do you have savings that you want to use or do you need an investor to loan you money? Who might your investor or investors be? When borrowing money, you are expected to pay interest on the money. Don t forget to calculate interest in your budget! Your business is not a charity; you are not allowed to accept donations. Think: Who can you ask to be an investor? Entrepreneur Challenge Business Loan Agreement I will borrow $ from (your name) (loan amount) (your investor s name) for my business. I will pay % interest for a total repayment amount of (interest rate) $. This will be paid in full no later than. (loan amount + interest)) (date loan is due) The consequences of not meeting these terms, or defaulting on this loan will be. I (consequences) (your investor s name) will not release from his/her duty to repay the loan and (your name) interest in full, as this is an important part of the Entrepreneur Challenge experience. Signed, X X Entrepreneur (that s you!) Investor Date 8

Is this a seasonal business, and if so will it work in the space that time of year? Take a look at your community. Where is there space for your business?

11 choosing a site An important part of a successful business is being in the right place at the right time. Where should you put your business? Do you just need space for a table or a tent, or do you need office space? Will you need specialized space or equipment? What hours will you be open? Is this a seasonal business, and if so will it work in the space that time of year? Take a look at your community. Where is there space for your business? Are there empty store fronts in downtown you could barter your way into for a week? Can you get permission to use school space or a parent s workplace to have access to everything you need? If you work out of your home, how are you going to attract customers attention in town? If you choose to have your business on private property, be sure to get permission from the owner. Where will you put your business? What do you need to do to secure this location? What could be an alternate location? 9

advertising Advertising: everything you do to tell customers about your business or product To bring more customers

Does your business have a unique name? Do you have a catchy slogan?

In the weeks leading up to your sales, post about your business on Facebook, Twitter, and other social media sites.

Put out posters advertising your business name, what you are selling and how much it costs, and where people can

Many a small thing has been made large by the right kind of advertising.

12 advertising Advertising: everything you do to tell customers about your business or product To bring more customers to your business, you need to promote your business to potential customers. In other words, ADVERTISE. Does your business have a unique name? Do you have a catchy slogan? Is your product or service filling a need not otherwise met in the community? Tell them! In the weeks leading up to your sales, post about your business on Facebook, Twitter, and other social media sites. Create an electronic invitation to your opening day for your friends and family. Put out posters advertising your business name, what you are selling and how much it costs, and where people can find you. Even better, come up with a new and unique way to promote your business! Many a small thing has been made large by the right kind of advertising. -Mark Twain 10 Attract Customers with: Unique posters, flyers, or postcards invites YouTube commercials School or community newsletter announcements Announcements or presentations to school clubs Big signs leading the way to your business Co-advertising with other businesses Coupons passed out to friends (ahead of time) Wearing your team shirts or another special uniform Getting friends and family to invite others Pre-selling tickets or orders for your item, service or event Something new and creative that only you could come up with!

market research Target Audience: A group of the population, defined by age, income, interests, or other factors, that is most likely to become your customers You have a limited budget to spend on

Before you can launch a successful business, you must know information about your target audience. Think about your most likely customer when you answer the following questions.

On the internet, from friends, online, elsewhere?

13 market research Target Audience: A group of the population, defined by age, income, interests, or other factors, that is most likely to become your customers You have a limited budget to spend on marketing if you want to maximize your profits. Choosing which audience is most likely to spend money with your business can be a tricky process, but one that will save you big bucks. Before you can launch a successful business, you must know information about your target audience. Think about your most likely customer when you answer the following questions. What age is my target customer? What gender? What do they do for work? What do they do for fun? Where do they spend their time? Where do they get their information? On the internet, from friends, online, elsewhere? The more you know about your target audience, the more you can use that information to put your business in front of them, and present it in a way that will attract their attention. You can find out answers to the questions on the left, and even more about your target audience, with tools from Sno-Isle Libraries. On the Sno-Isle Libraries home page, choose Research on the top navigation bar. From there, click on the Business & Finance tile. Information on target audiences, and how many of your target live in your area, can be found under DemographicsNow. For more information on how to use this tool, ask your local librarian or contact the EDC. 11

writing a business plan Now that you ve successfully chosen a product or service, planned your marketing strategy, penciled out the costs, and identified the strengths of your team

More importantly, they re a tool to focus you on what your business is, where you want it to go in the future, and how you re going to get there. Besides, it s required.

Business Plan: a description of your business, including what you sell, how it works, and where you re going Your business plan should focus on the subjects listed in the following table

For a more detailed description of what goes into each section, view the sample business plan on the Entrepreneur Challenge Resources page at www.iscoedc.com.

14 writing a business plan Now that you ve successfully chosen a product or service, planned your marketing strategy, penciled out the costs, and identified the strengths of your team members, it s time to put it all together in one place. Business plans are crucial to the success of every business. They can help you get funding, investors, or partners. More importantly, they re a tool to focus you on what your business is, where you want it to go in the future, and how you re going to get there. Besides, it s required. At the end of the Challenge, you will turn in a business plan, and profit and loss financial report. These documents are due to the EDC by 5 PM on Monday, November 23. Business Plan: a description of your business, including what you sell, how it works, and where you re going Your business plan should focus on the subjects listed in the following table of contents, and should include a cover page. For a more detailed description of what goes into each section, view the sample business plan on the Entrepreneur Challenge Resources page at Just like every business in Island County, the Economic Development Council is here to help. If your team would like to schedule an individualized training session, call Sami at the EDC at (360) Table of Contents Company Description... Definition of Market... Description of Products and Services... Organization and Management... Marketing and Sales Strategies... Financial Statements Business Plan Cover Page

profit & loss statement Operations Revenue Investments $ + Sales $ +

sales, and costs even including supplies to make posters.

Think: Are you missing any sources of income or expenses?

Expenses Net profit (TR - TE) $ = $ = $ Did you meet your goal?

15 profit & loss statement Operations Revenue Investments $ + Sales $ + Keeping a close track of every dollar that comes in and out of your business is crucial. This includes investements, money you put into the business yourself, sales, and costs even including supplies to make posters. Tips $ + Other Income $ + Total Revenue = $ Expenses Consumables (U) $ + Think: Are you missing any sources of income or expenses? Equipment $ + Repayment of Loan plus interest $ + Other Expenses Total Expenses Net profit (TR - TE) $ = $ = $ Did you meet your goal? o yes o no Loan Amount Borrowed $ Amount Repaid $ For a downloadable Excel file to use for your profit and loss accounting, visit the Entrepreneur Challenge page at 13

running your business It s time to put all of your planning to use! Remember to have fun.

your business. Be friendly. Greet each customer with a smile. Look them in the eye and say thank you. Treat them like a person, not a sale! Be professional.

Be flexible and remember that your customers are the reason for your business. If someone isn t happy with your product or service, listen to the reason. Fix the problem if you can or offer a refund.

16 running your business It s time to put all of your planning to use! Remember to have fun. Tips for Great Customer Service Excellent customer service can often be the selling point for many businesses, and it is absolutely essential to establish a reputation for customer service early in your business. Be friendly. Greet each customer with a smile. Look them in the eye and say thank you. Treat them like a person, not a sale! Be professional. Have fun running your business, but keep the line moving. Keep yourself and your business neat and clean. Give back accurate change. Fulfill all your promises an obligations. Be flexible and remember that your customers are the reason for your business. If someone isn t happy with your product or service, listen to the reason. Fix the problem if you can or offer a refund. Be safe. Make your business safe for you, and for your customer. Be visible. Make sure people know where to find you and can read any signage from a distance. Be creative. Try to sell more by offering options or upgrades. Be clean. Would you want a slob making your burger or cleaning your house? Be grateful. If you are on private property, thank the owner. Thank all of your investors, mentors, and supporters. 14 Remember this. Take a photograph of your business and your team! Think: To provide great customer service, think through the following scenarios and develop answers to the questions. How do you respond? What could you do to prevent these events from occurring? This product/service does not do what I thought. I want my money back. I gave you a $20, not a $10. You have given me the wrong change. What are you raising money for? I could go to another, more established store to get the same thing. Why should I buy from you? Do you take custom requests or orders? Why is your product/service so expensive? Is this organic?

reflections & future plans What was the best part of the Entrepreneur Challenge? The worst? Do you see yourself opening your own business? What will your next venture be?

Reflect on your experiences during the Entrepreneur Challenge to answer the following questions: What did I learn? What did I do well? Was my location good?

How can I apply what I learned to my life and future?

17 reflections & future plans What was the best part of the Entrepreneur Challenge? The worst? Do you see yourself opening your own business? What will your next venture be? You have just had great training for other entrepreneurial education programs. Think about how you could apply what you learned to DECA, FBLA, college and more. Reflect on your experiences during the Entrepreneur Challenge to answer the following questions: What did I learn? What did I do well? Was my location good? Is there a better location for future endeavors? What would I do differently next time? What kind of product or service would I sell next time? How can I apply what I learned to my life and future? Now that you ve run your own business for a week, there s nothing stopping you from turning it into a full-fledged business. If you want to learn the next steps to turn this or anything else into a full business with customers and support year-round, call the EDC at (360) We ll help you take the steps to be your own boss! 15

awards Grand Prize Using generally accepted accounting practices, the

with bragging rights over the other districts for a year.

with the most creative project, based on how it is different from

inspires people, and the creativity of the name of the business.

Scholarships won through this competition can be used for tuition,

18 awards Grand Prize Using generally accepted accounting practices, the team with the highest net profit (income - expenses) will receive the Grand Prize. The winning school hosts the traveling trophy until next competition, with bragging rights over the other districts for a year. $250/student 16 Creative Business Award This award goes to the team with the most creative project, based on how it is different from other products on the market, what problems it solves, how much it inspires people, and the creativity of the name of the business. $100/student. Scholarships won through this competition can be used for tuition, competitions, books, equipment, fees, or other entrepreneurial endeavors. You are encouraged to apply the funds to any program that can help you gain the necessary skills to become a successful entrepreneur!

Every participant will receive an invitation to the awards dinner in

Winners will be announced at a catered dinner to honor all participants

You and your team will receive a free ticket to the dinner.

Award This award goes to the team with the best use of Sno-Isle

Mayor s Choice Awards Not every business is a good fit for every area.

19 Every participant will receive an invitation to the awards dinner in December. Invite your friends, family, and mentors to see you shine! Winners will be announced at a catered dinner to honor all participants of the Entrepreneur Challenge. You and your team will receive a free ticket to the dinner. Each team will present their business and what they learned. Award This award goes to the team with the best use of Sno-Isle Libraries tools in their business. $100/student. Mayor s Choice Awards Not every business is a good fit for every area. The mayors of Oak Harbor, Coupeville, and Langley will choose which business is best suited to the needs of their towns, and will award the team a non-cash prize. 17

glossary Advertising: everything you do to tell customers about your business or product Budget: a list of all planned expenses and revenues Business: the selling of goods or services for the sake of

20 glossary Advertising: everything you do to tell customers about your business or product Budget: a list of all planned expenses and revenues Business: the selling of goods or services for the sake of earning a profit Business Plan: a description of your business, including what you sell, how it works, and where you re going Capital Equipment: items that can be used over and over again Consumables: supplies that once used are gone or no longer usable Entrepreneur: a person who starts a business assuming the risk for the purpose of making a profit Expenses: all costs related to your business Goal: the Glossary specific task or target a person aims to achieve Profit: the money gained from the sale or sales after expenses are paid Revenue: all money that comes into your business Target Audience: a group of the population, defined by age, income, interests, or other factors, that is most likely to become your customers questions Q. What happens to the profit we make at the end of the Challenge? A. Teams will be responsible for choosing a school program (booster club, sports team, etc) to support with the funds they make in this competition. 18 Q. What if we have any leftover product? A. If you ve made a deal with any investors that involve excess product, those agreements must be honored first. Any goods left over after all agreements have been met may be donated to a school organization for use or sales. Q. FAQ Can we take over an existing business for a week? A. No. Teams are expected to form an all-new business venture that utilizes their talents, abilities, and the needs of the community. Q. What if my question is not answered here? A. Feel free to direct any additional questions to Sami at the EDC. She can be reached at (360) or icedc@whidbey.net. Questions must be submitted at least 24 hours before any due date.

21 notes

22 notes

org Sno-Isle Libraries: Sno-Isle Libraries has a number of resources and tools essential to planning your business.

23 resources There are a number of resources to help you with the Entrepreneur Challenge and beyond! Economic Development Council: The EDC has a dedicated page of resources for the Challenge, with links, guides, and tips to get you everywhere you need to go. iscoedc.org Sno-Isle Libraries: Sno-Isle Libraries has a number of resources and tools essential to planning your business. Follow the guides found on the Entrepreneur Challenge on the EDC website or contact the EDC to learn how to use these tools to power on your business. sno-isle.org SBDC: The Small Business Development Center is a dedicated resource to the small businesses of Washington. They have a number of podcasts, webinars, and other training and resource materials to boost your business. wsbdc.org SBA: The US Small Business Administration has online training courses that walk you through how to write a business plan, and much more. sba.gov Biz Kids: This site has fun games, worksheets and videos to help you plan out the important details of your business. bizkids.com DECA: Had fun in this competition and want to keep that energy going? Find out where your nearest DECA club is and how you can get involved. deca.org FBLA: Future Business Leaders of America is another great program your school might have to explore your future in business. fbla.org Secret Millionaires Club: Warren Buffett s Secret Millionaires Club has an annual contest to submit your business ideas for a chance to win up to $5,000 and the opportunity to pitch your business to Mr. Buffett himself. smckids.com All Terrain Brain: Is there an entrepreneur in you? This site is loaded with games, animations, and inspirations to help you find out! allterrainbrain.org

24 Sponsored by: Get involved or ask your questions: E F Sami Postma Economic Development Council 180 NW Coveland Street PO Box 279 Coupeville, WA icedc@whidbey.net

Student OPEN. Student Workbook

Student OPEN. Student Workbook Student OPEN Student Workbook here you will find... Time line...2 Teamwork...3 Goals...4 Planning...5 Budgeting...6 Finding an Investor...8 Choosing a Site...9 Advertising...10 Market Research...11 Writing