Transcript Entrepreneurship Monday, November 4th

Thursday, April 10th
 PLEASE DO NOT LOG ON TO THE
COMPUTER!!!
 Warm Up: Find a person you normally
don’t talk to and answer these questions …
 What’s the difference between these two
kinds of start up costs: assets and
expenses?
 List three start up costs you have identified
for your business
Start Up Costs
Assets: Things of value that you
own
Expenses: Initial costs you must
incur before opening
FIELD TRIP!
You need paper, pen/pencil and a
solid writing surface
Bring anything with you that you
will need at lunch
I can lock this room
NO technology!!!
Field Trip Part II
 NO TECHNOLOGY!!!
 Get back into your teams from the
beginning of class
 Compare your start up cost list and create
one list together (by adding to each list or
whatever works)
 Group discussion: start up costs
 Explanation: Assets vs Expenses
 As a team, classify the start up costs as
Assets or Expenses
ASSET OR EXPENSE?
 Asset: Thing of value that you own; use
it long term
 Expense: additional costs you must
incur to open your doors
On your own …
 Write, in your own words, a definition of
… start up costs, assets, expenses
 Look at the list of start up costs you
already began (with the reading) and
classify each as an asset or an expense
Ticket Out
Standing check:
I can identify start up costs for my
business
I know the difference between
costs classified as assets and costs
classified as expenses
Friday, April 11th
NO COMPUTERS!
DROP YOUR BAG SOMEWHERE
CONVENIENT, GET OUT PAPER
AND A PEN AND …
IF YOUR SMALL BUSINESS IS A
SERVICE BUSINESS GO STAND AT
THE BOARD AT THE BACK OF THE
ROOM
IF YOUR BUSINESS IS A RETAIL
BUSINESS GO STAND AT THE BOARD
ON THE SIDE OF THE ROOM
TEAM WORK
 BIG LEARNING TARGET: I can identify and
calculate accurate start-up costs for my small
business.
 1: Given a business, I can identify accurate
start-up costs.
 2: I can determine ways to minimize my startup costs without compromising my business
ideas.
 3: I can categorize start-up costs as either
assets or expenses.
 4: I can research start-up costs for a small
business.
IN CLOSING …
 Reflection question at the end of your
document
 Ticket out
 HOMEWORK over break … THINK about
start-up costs for your business!!
 Have a great break, be safe!
Tuesday, April 22nd
 Warm Up: Please log in and check your
grades. Make a note of any
questions/concerns … there will be time
to talk to me later in the hour.
 Today …
Assignments from week prior to break
Start Up Costs warm up activity
Start up Cost PRACTICE assignment
Return of Market Analysis
Start Up Costs
 Anne’s beginning a Home Cleaning
Business. Make a list of her start up
costs (the items, not the amounts)
 Where can we find costs for those start
up items?
 Your job: complete start up costs for
your business
NOTE: you must show completion of all
previous start up cost assignments
before I will accept your start up cost
assignment
PRACTICE VS PERFORMANCE
 Practice grade is FINAL
 Practice grades count for 12% of your
overall grade
 Performance grades – revision is
allowed, up until May 2nd.
 Performance version of company
overview due by Thursday, April 24th
Return rubric to box
 Performance version of market analysis
due by Friday, April 25th
Return rubric to box
WEDNESDAY, APRIL 23RD
 Warm Up: What is your biggest start up cost?
Is there a way you can minimize it? Should
you include the following in start up costs:
 Staff Salaries
 Rent
 Utilities
 Consider ways to limit start up costs … just a
few ideas:
 Rent a facility instead of building or buying
 Consider scaling back … fewer products, fewer
services to start, for example
 Use things you already own (a car, a computer, etc.)
Due Dates
 Start Up Costs due Thursday, April 24th
(NO class time to work on them)
 PERFORMANCE Company Overview due
Thursday, April 24th
 PERFORMANCE Market Analysis due
Friday, April 25th
Thursday, April 24th
 Warm Up: Please log in to computer.
Go to my website, read the article titled
“Calculating Revenue for Your Business”.
Take notes in any fashion!
 Today …
Calculate your revenue
Some terminology – notes
Income Statements
Revenue
 Business revenue represents the total
amount of money coming into a
business before expenses have been
taken out
Calculating Revenue - Food
 --For those going into food industry,
estimating a monthly revenue is based
on how many meals you can reasonably
expect to serve a day times 30.
Calculating Revenue - Widgets
 --A business that sells widgets
multiplies the amount of widgets that
he can reasonably expect to sell in a
month times 12 for a yearly estimate. A
reasonable estimate can be determined
by talking to other vendors and
suppliers.
Calculating Revenue - Service
 --Service industries estimate future
revenue based on existing contracts.
For example, a piano teacher with 10
students generating $1000 per month in
revenue can expect a yearly revenue of
$12,000.
NOW YOU CALCULATE
YOUR REVENUE
Create a document in your google drive. Make notes
about your calculations so you can remember!!!
Finance Of A Business
●
●
●
In order to understand the finances of a
business, we need to have a common
language
Together, we are going to learn a BUNCH of
terms
For each term, TAKE NOTES if you don’t
know the term
Financial Records
●
Why is it important to know your businesses'
finances and to keep good financial records?
–
So you know if you are doing well
–
So you don't go bankrupt
–
If you have a loan or investors, you need to tell
them how you are doing
–
Avoid theft
–
To help improve your business
Finance Definitions
●
1. Demand: How much the market
(customers) wants
●
Ex: “everyone wants black hoodies”
●
2. Supply: The amount available for sale
●
3. High prices = High demand, low supply
●
4. Low prices = Low demand, high supply
Finance Definitions
●
5. Start up costs: What I need to spend to be
able to open the doors.
–
●
Ex: I need to buy a lawn mower to mow the
lawns.
6: Ongoing costs: The ongoing costs I
encounter every day I operate my business.
–
Ex: Rent, gas for the lawn mower
Finance Definitions
●
7. Fixed costs: costs that do not vary based
on production; costs that must be paid even if
you don't sell a thing.
–
●
Example: I have to pay the rent even if I
don't sell or make anything.
8. Variable costs: costs that vary based on
production or other factors.
–
Ex: If I am open more hours, I will pay
more hourly wages
DEFINITIONS
●
●
9. Revenue: the money you bring into your
business. Ex: I sold $100 worth of hoodies
10. Cost of Good Manufactured or Cost of
Goods Sold: how much it costs the business
to either make or buy the items it sells.
–
●
Ex: It costs the school store $10 to buy polos.
They sell the polos for $20.
Ended here fifth and
seventh hours
Monday, April 28th
 WARM UPS:
 First, read the INCOME STATEMENT article
on my website & take notes
 Second, save the Income Statement
Template to your Google Folder for this
class
RENAME IT WITH YOUR NAME AND YOUR
BUSINESS NAME
5_hasseld_annies_home _cleaning_income
statement
Grades
check your grades and
STAY LOGGED IN to MiStar
Grades
Today …
 Open the example Income Statement on my
website
Read it
Find three facts
 Discuss/Review Income Statement
Revenue
Cost of Goods Sold
Wholesale price – read article on website
Expenses
What will it take to run your business on a daily
basis?
Cost of Goods Sold
For a restaurant, food cost is usually
¼ to 1/3 of total sales
For a service business, you only need
to include anything that’s an exact
cost of that service (i.e. ice time to
give a goalie lesson)
For a retail store, it’s usually 1/3 to
½ of sales
Finance Definitions
11. Income: The money you make AFTER
you pay all your expenses
–
Ex: I sold $100 worth of hoodies. The
hoodies cost $60. My other expenses cost
$25. My INCOME is $15
12. Profit/Loss calculation: Total Revenue –
Total costs
Finance Definitions
●
13. break even point: the point where costs
= revenue
Ex: If all of my costs = $400, I need to sell
$400 worth of stuff to break even
14. cost per unit: the amount of cost per unit
of item purchased.
–
●
–
Ex: If I buy a case (24) of pop that costs
$4.80, my cost/unit is 4.80/24 = .20 per
can of pop
Tuesday, April 29th
●
Warm Up: Calculate this problem: In the
school store, my sales for November were
$1,100. My costs of goods sold was $275.
My other expenses totaled $900. What is my
income? What can you INFER from this
calculation? (List SEVERAL ideas)
Today
 Calculate Wages (see next slide)
 Create Income Statement
Revenue
Cost of Goods Sold
Expenses
 USE the format provided!
Wages
 Ask yourself these questions …
How many hours am I open in a day?
How many days a week?
How many people will work at one time?
How much will I pay them?
Wage Example
How many hours am I open in a day? 8
How many days a week? 5
How many people will work at one time?
2
How much will I pay them? $10
 8*5*2*10 = $800 – labor cost for one
week *52 weeks = $41600
Employee Benefits
 This may be something for the future,
or you could do this now.
 Take your total wages and multiply
them by 30% to get a number for
benefits.
Financial Summary
LAST, summarize your income
statement in words – at a very
high level
See the My Ice Shavings plan for
an example