Business Plan Lesson 1 - 12th Grade Economics


Lesson Summary
Working independently or in groups of two and max of three, the students will create a business plan.  The students will need to provide a market description including the market size, target market, secondary segments, competitive analysis and price analysis.  The students will provide a product description including a competitive and price analysis.  The students will provide a sales, service and marketing strategy and an organization and finance plan.  The students will present their business plans to the class.

California Academic Standard(s)
  • 12.1 – Students understand common economic terms and concepts and economic reasoning.
  • 12.2 – Students analyze the elements of America’s market economy in a global setting.

Time Frame 
Semester

Goal
The students will learn critical thinking skills while understanding the key principles of the economics in a practical role.

Learning Styles
  • Linguistic
  • Auditory
  • Social
  • Physical
  • Logical
  • Intrapersonal
Lesson Plan
Lesson 1 – Introduction to the Business Plan Project
Anticipatory Set (10 min)
The instructor will write a question on the board that states “What are different industries of business?”  The instructor will tell the students to take 2 minutes and think about their answer(s).  The instructor will ask the students to provide answers and the instructor will write the different industries on the board.

Direct Instruction (15 min)
The instructor will provide a handout with directions for the business plan.  The instructor will describe the directions to the class and answer any questions.

Directions
Each student will need to complete a business plan for either a product or a service.  The business plan can be completed individually or in groups of two individuals.  The business plan will consist of the following:
  • Executive Summary – The Executive Summary will summarize the entire the plan.  The Executive Summary will be written last.
  • Market Description – Define the target market.  Who are the competitors?  What customer need are you fulfilling?
  • Product/Service Description – Provide specifics about the product or service you are selling.  How is your product or service better than the competition?  What is the price point of the product or service?
  • Marketing, Sales and Service Strategy – How will you market and sell to your customers?  How will your product or service be distributed?  How will you advertise your product or service? 
  • Organization and Finance Plan – Estimate the start-up costs.  How do you expect to get the money for the business?
Business Plan Milestones
  • 2/16 – Submission of Business Idea
  • 3/25 – Market Description
  • 4/1 – Product/Service Description
  • 4/17 – Marketing, Sales and Service Strategy
  • 4/22 - Organization and Finance Plan
  • 5/6 – Completed Business Plan 
  • 5/9 – 5/13 – Presentations of Business Plan 


Executive Summary 
Paragraph Format – A one page summary of the entire business plan.  The executive summary should be able to sell the business idea completely to a person only reading the one page executive summary.


Market Description
·         Market Size
o   Paragraph Format – Explain if the market you are selling to is local regional, national or international.  Provide reasons why.
o   Paragraph and Bullet Format – Describe details of your market including elements such as size (geography and population), location (online and offline)
·         Target Market
o   Paragraph Format – Describe who is the core customer
o   Bullet Format – List elements of the target market including: income range, gender, personal attributes and any other relevant information about the target market
·         Secondary Segments
o   Paragraph Format – Describe any secondary markets
o   Bullet Format – List elements of the secondary markets including: income range, gender, personal attributes and any other relevant information about the secondary market
·         Competitive Analysis
o   Paragraph Format – Define who is the competition.
o   Bullet Format – List competitors
·         Price Analysis
o   Paragraph Format – Describe the prices for similar products or services
o   Bullet Format – List the competitors and what they are charging for similar products or services

Product/Service Description
·         Product/Service
o   Paragraph Format – Explain the details of the product/service and what it does
·         Service
o   Paragraph Format – Explain in detail the experience the customer will have with your service
·         Competitive Distinction
o   Paragraph Format – Explain how the product or service is better than the competition
·         Price Points
o   Product - Paragraph Format – What will the product/service sell for?  This information should be based on information obtained from the market description

Marketing, Sales & Service Strategy
·         Marketing
o   Paragraph Format – Explain the key features and benefits of the product or service.  Demonstrate how you will distribute the product or service and provide an advertising plan to expose your product or service to your potential customers.
·         Sales
o   Paragraph Format – Explain in detail the process on how you will sell your product or service.
·         Service
o   Paragraph Format – Explain in detail the process on how you will provide service for your product or support your service.

Organization and Finance Description
·         Organization
o   Paragraph and Bullet Format – Explain how you believe the organization will develop based on your business model.  List the key management positions and provide a detailed explanation on their roles in the business.  Provide a biography of the key individuals or partners in the organization.
·         Finance
o   Paragraph and Bullet Format – Explain what type of financing you will need for the business and provide a detailed list of the costs needed to start up the business.

Guided Practice (25 min)
The instructor will assign the students in groups of two.  The students will write down a new business idea for 5 different industries.  The students will have 15 minutes to complete.  The instructor will call on each group to provide at least one business idea to the class.

Direct Instruction (5 min)
The instructor will tell the students the deadline for picking a group or working alone and submitting the business idea.  The instructor explains the advantage and disadvantages of working alone or in a group.  

Independent Study 
Each individual student or group will devise a business idea and submit it to the instructor.

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