Overview

The Business Plan

Overview

The Business Plan Time Frame: 20 hours

Course: E-BUSINESS 30 (grade 12)

Abstract

In this unit students will recognize the value of planning. They will then use the skill of planning to develop a business plan for their real or hypothetical business idea. They will prepare a budget and a cash flow analysis on their business plan, information that will help them reflect on the quality of their plan. They will also come to an understanding of some of the ethical responsibilities that should be considered while completing a business plan.

Rationale

The new economy has shown that businesses’ that use the Internet as a communications tool are often very successful. This module gives students an overview of one of the basic components of a new business that they will need to launch a business of their own.

Pre-requisite Learning:

Basic Windows Skills

starting and exiting Windows
navigating (moving around) through Windows environment
using mouse and keyboard
opening, closing and saving files
accessing menus and making menu choices
using scroll bars, the minimize, restore, and close buttons
finding and managing documents

Entrepreneurial knowledge

netiquette
being an entrepreneur
marketing / advertising
selecting a business name

Common Essential Learnings

This module focuses on the following common essential learnings (CELs).

To develop effective advertising and communication skills for today’s technological business environment. (COM)

To develop students' abilities to create their own learning experiences by planning, designing, and managing their own projects. (IL)

To provide opportunities for students' active involvement in decision-making and problem solving related to technological developments in business and society. (TL)

To respond to learning and change in a business environment that will include decision making, problem solving and a sense of entrepreneurship. (IL)

To develop self-esteem and personal-use skills through the successful development of a business plan. (PSVS)

Develop an understanding that technology both shapes and is shaped by business. (TL)

Foundational Objectives

This module focuses on the following objectives.

At the end of this module, students will be evaluated on their ability to:

To recognize the World Wide Web as a tool to aid in business development, communications, and success.

Students will learn the importance of planning. They will develop a business plan that can be used as a planning tool. They will accomplish these goals using the Internet as a tool for research and practice.

Business Plan Overview

Foundational Objective: Students will learn the importance of planning. They will develop a business plan that can be used as a planning tool. They will accomplish these goals using the Internet as a tool for research and practice.

Suggested Time Allotment: 20 hours.

Unit Objectives: Students will be able to:

Recognize how planning can overcome problems.
Organize and explain a general planning framework.
Define a basic business plan and demonstrate that they understand its functions and its importance through the preparation of business plans online, and on paper.
Prepare a budget and complete a cash flow analysis.
Analyze and reflect on their business plan and understand some of the ethical responsibilities that should be considered.

Section 1: Planning

Approximate Time: 2 hours.

Section Content:

The importance of planning in general by coming up with answers to the following questions.

What is to be done? What problems and pitfalls can planning avoid? What unpleasant occurrence in your recent past could have been avoided by planning?

Why is it being done? Why is planning important?

Where will this be done?

When will this be done?

Who will do it?

How will it be done?

Suggested Activities and Evaluation:

Take students through a set of general rules for planning.

Students complete their first planning exercise.

Formatively evaluate the student’s understanding of the concepts involved through observation. Diagnosing individual problems with the content and providing individual instruction to keep the class flowing in spite of it having students with diverse abilities in it.

Plan can be taken in for summative evaluation. Portfolios could be kept of student activities and graded at the end of the unit for completeness, accuracy, creativity, and overall appearance.

Suggested Resources:

Saskatchewan Education: Entrepreneurship 30 curriculum guide.

Sample Lesson:

Content:

The importance of planning
The framework of planning.
The value of planning.

Suggested Instructional Approach:

Direct instruction in order to outline the fundamentals of a proper planning strategy.

Post a general framework for planning somewhere in the classroom so students will have a constant reminder.

Using this basic, general outline, students may complete their first planning exercise. A student's objective may be to increase her or his marks next term. Using the planning guide, students may describe the plan, procedures, and standards that can help to accomplish this goal. A simpler plan may involve planning what the student may do for the rest of the day or week. A simple application is the first step in planning. "Failing to plan is planning to fail." One of the key purposes of planning is to help to determine when changes are necessary and allow time to make them.

Section 2: General Planning Framework

Approximate Time: 3 hours.

Section Content:

An introduction to a business plan.

Showing how the Business plan bridges the gap between thinking and doing.

Suggested Activities and Evaluation:

Students are given, through direct instruction, a general planning framework. A Jigsaw activity could then be used with students separating into groups and learning an area of the framework. Students then would come back together and teach their peers the areas that they focussed on.

Direct instruction would be used to cover any areas that the students did not cover as well.

Present an example of a completed business plan. Have students compare it to their plans and note the similarities and differences.

Evaluation done for formative and evaluation purposes could include teacher observation and observational checklists. This would be done to assess the students understanding of the content thus far and determine whether they are ready to continue or whether they will need some added instruction on the topic.

Suggested Resources:

Royal Bank web site - http://www.royalbank.com/

Sask. Ed. - http://www.sasked.gov.sk.ca/

Sample lesson:

Content:

General planning framework.
The strategic planning sequence.

Suggested Instructional Approach:

Group activities would work well for this material. A Jigsaw activity would work well as students could examine sections of the plan to familiarize themselves with it, and then come together and teach their peers what they have learned.

Direct instruction could be used to convey to the students the following strategic planning sequence:

1. State the mission or purpose for the venture. It should be clear to all persons involved.

2. Evaluate the present strengths and weaknesses. Analyze the resources available at the present time. Encourage the planners to be more realistic in their expectations.

3. Forecast what the environment that the plan is for will be like. What are the anticipated threats and opportunities?

4. Develop goals for the venture including timelines. Both long-term and short-term goals may be identified that will be developed in light of the strengths, weaknesses, and environment issue identified above.

Section 3: Functions of a Business Plan

Approximate Time: 3 hours

Section Content:

The methods involved in preparing each individual step of a Business plan.

Suggested Activities and Evaluation:

Students are presented with the purposes and methods involved in preparing each step of the business plan.

Students will prepare their own business plans (on real or hypothetical business topics) on paper, either alone or in small groups.

Students will follow the instructions and complete an on-line business plan at http://www.royalbank.com/

Students will be evaluated formatively throughout their progression through the individual steps of a business plan. The completed documents can be evaluated summatively at the end of the unit to assess the amount of work accomplished, the quality of the work, or the individual's participation. Participation can be assessed through the use of an observational checklist or through teacher observation.

Suggested Resources:

Saskatchewan Education: Entrepreneurship 30 curriculum guide
Royal Bank Web site - http://www.royalbank.com/

Sample Lesson:

Content:

Outline of a Business plan through the following suggested steps:
Summary or description of the venture.
Table of contents.
Market Research, Analysis plan.
Resource analysis
Operating Scheduling
Financial Program
Risk factors

Suggested Instructional Approach:

Over a series of classes the instructional approaches should vary. Direct instruction at the beginning to give students a foundation in the content of the steps. Then to Independent learning when the students prepare their own business plan (or group learning if they are doing it in groups). Students will use the Internet to complete an on-line Business plan.

Section 4: Budget & Cash Flow Analysis

Approximate Time: 4 hours.

Section Content:

An overview of the following topics to give students an understanding of some of the factors involved in financial assessment.

Preparation of financial objectives.

Estimating revenues and expenses.

Preparation of cash flow analysis and the calculation of startup costs.

Suggested Activities and Evaluation:

Students will need to research and obtain information on loan applications, contracts, and other documents that may be required for them to proceed with their (real or hypothetical) business plans.

A guest speaker from a financial institution may be called in to talk about what criteria the institution uses to determine the viability of a financial plan.

Spreadsheet software may be used by the student's to do the required calculations and forecasts.

Students may self assess their financial plans by comparing and contrasting it with the financial institutions criteria, and other standards that they find in their Internet research.

Suggested Resources:

Saskatchewan Education: Entrepreneurship 30 curriculum guide

http://www.royalbank.com/

Sample Lesson:

Content:

Preparation of financial objectives.

Suggested Instructional Approach:

Students will independently research this topic on the Internet and in other sources as required. A great deal of information is located on the World Wide Web. When they have obtained enough information they will be required to prepare a version of their own business ideas financial objectives, budget, estimate of revenue and expenses, and cash flow analysis.

Section 5: Analysis and Reflection

Approximate Time: 4 hours.

Section Content:

Preparation of a generic list of the most helpful and valuable tools for creating a business plan.
Who will see the plan?
Who are the relevant stakeholders?
What are the benefits of creating a business plan, and of planning in general?
Ethics of an Entrepreneur.

Suggested Activities and Evaluation:

In cooperative groups students may brainstorm a list of helpful ‘tools’, and find answers to the questions.
Teacher may assess cooperative group skills.
Direct instruction followed by a class discussion may be used to help the students understand who the stakeholders are.
A role playing exercise could give students a greater understanding of the ethics of an entrepreneur.
Anecdotal notes can be kept to assess student participation in the role playing activity.

Suggested Resources:

Saskatchewan Education: Entrepreneurship 30 curriculum guide

Planning Adventures: Synectics (Saskatchewan Professional Development Unit/Saskatchewan Instructional development and Research Unit, 1991)

Sample Lesson:

Content:

Reflecting and analyzing the business plan.

Suggested Instructional Approach:

Synectics could be used to reinforce the learning of the important concepts. How is the process of creating a business plan like the process of using a recipe to cook a meal, for example? How are they different?

Additional Suggested Resources

Canada's Electronic Commerce Strategy - http://e-com.ic.gc.ca/english/index.htm

E-commerce, Internet Business and Government resources for beginners to experts.
http://www.becrc.org/

This site has free downloadable software for business planning - http://www.businessplans.org/