H OP ON THE BUS! H IGH S CHOOL B USINESS P LAN C OMPETITION : Using competition to build youth financial and entrepreneurial skills

What is Entrepreneurship? Entrepreneurship is the ability to create and build something from practically nothing. It is initiating, doing, achieving, and building an enterprise or organization, rather than just watching, analyzing, or describing one….

Entrepreneurship Drives the Economy 69% of high school students want to start their own business Source: Gallup poll 86% of high school students rate their business knowledge very poor Source: Gallup poll

Why Entrepreneurship Education? Entrepreneurship is an “equal opportunity” career path Entrepreneurship education provides opportunities for participants to master competencies such as: Creativity Financial knowledge Critical thinking Decision making Teamwork Leadership Persuasive writing

Hop on the BUS! Brings Entrepreneurship into the Classroom Students can develop their business plan based on the business idea of their choosing Website provides tools for teachers to use in the classroom or to help individual students The business plan can be the start of a graduation project, club competition, or an actual business the student runs

Hop on the BUS! Background Created in 2006 as part of the statewide Entrepreneurial Development System funded by the W. K. Kellogg Foundation Expanded in 2010 to twice a year through a grant from the Citi Foundation Now in 7 th year Open to all High School Students in North Carolina Sponsored by North Carolina Department of Public Instruction, NC REAL, NCCEE (NC Council of Economic Education) and N.C. Rural Center

Hop on the BUS! Successes Michael Savage, a winner from the first year, started his business and ran the business throughout college. RamWear, a school-based jewelry business from Starmount High School placed in Hop on the BUS! and raised money for a student’s medical expenses. Travis Miller, a student from Ashe County High School, plans to start his furniture design business to earn money for school.

Using Hop on the BUS! Competition open to all High School-aged students including home schools, charter schools, and private schools The competition reinforces skills taught in core and elective courses including communication, persuasive writing and financial literacy

Using Hop on the BUS! Can be used as a culminating activity for many classes Can be used in conjunction with other student organizations and clubs Can be used in community organizations such as 4-H, Boy and Girl Scouts, Entrepreneurship Clubs and Religious Youth Groups

Hop on the BUS! Rounds Round 1- Create teams, brainstorm on business ideas, select business idea, identify target market, create mission statement Round 2- Identify competition, determine size of market, determine price, develop marketing strategy Round 3- Determine organizational structure, identify risks and how to overcome them, develop cash flow for business Round 4- Top ten business plans will be chosen and teams will create a 5 minute business presentation

Tips for Success-Business Selection Encourage students to: Pick a business that they are familiar with or know someone in the business. Pick a business that is feasible for the student either today or once they complete their education Remember that simplicity is best Don’t forget about service businesses– they are often the most likely to become real businesses for the students Examples include: car detailing, dance teacher, child care, computer support, etc.

Pitfalls-Business Selection Too big of a business– very few people can start an airline or a major game company from day 1 Imaginary business– the business needs to follow the laws of physics. It is hard to figure a break-even on fairy dust!

Tips for Success- Marketing Encourage students to: Carefully describe their target market– remember the 80/20 rule (20% of your customers provide 80% of your business) Explain how the marketing strategies will reach the target market. Carry out the market analysis—once they have a clear target market it becomes easier to figure out the rest

Pitfalls-Marketing Too broad a market- never say “everyone is my market” Unrealistic advertising– can you really afford to advertise on the Super bowl? Listing word of mouth as your major strategy– while positive word of mouth is important it is passive and hard to control.

Tips for Success-Financials Encourage students to: Make sure that cash flow is consistent with the rest of the business plan It is more important to use realistic numbers than to show a large profit Carry out the breakeven to help with pricing

Pitfalls-Financials Leaving out salaries– payroll is usually one of the biggest expenses Using a template, but not changing the numbers for your specific business Showing giant profits from the very beginning

Tips for Success-Video Presentation Encourage students to: Treat it like they are selling the business idea to an investor Look at the camera and smile Have fun! A commercial is a great way to personalize the business.

Pitfalls-Video Presentation Poor sound quality– if the judges can’t hear them, they can’t score them Going into detail with the financials– just hit the high points Just doing a commercial without the business plan presentation

Hop on the BUS! Process and Timeline for Fall 2012 August-September: Students form teams and register for the competition September 21 st : Teams submit first round which includes business idea October 5 th : Teams submit 2 nd round which includes marketing plan October 26 th : Teams submit 3 rd round which includes financials

November 7 th 2012: Top 10 teams notified and asked to complete video presentation November 30 th 2012: Video Presentations Due December 14 th 2012: Winners announced and invited to awards ceremony hosted by NCCEE Hop on the BUS! Process and Timeline for Fall 2012

Supporting Materials- Website Each round includes activities for teachers or advisors to use to cover the topics Website includes links to online resources for teachers and students Website provides financial templates for personal budgeting, breakeven analysis, and cash flow

Hop on the BUS! Contact Information Website: Coordinators: Delores Ali, NC DPI Malinda Todd, NC REAL ext. 126