1. Why a Business Plan is Important Copyright © Texas Education Agency 2012. All rights reserved.1

2. Copyright Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency 2012. All rights reserved.2

3. The Business Plan Describes –What your business will produce –How you will produce it –Who will buy your product or service Explains –Who will run the business –Who will supply the goods Copyright © Texas Education Agency 2012. All rights reserved.3

4. The Business Plan States –How you win customers from your competitors –How you keep customers Provides –Detailed financial information –How will your business earn a profit Copyright © Texas Education Agency 2012. All rights reserved.4

5. A Business Plan Serves Three Purposes A Business Plan –Explains the idea behind your business and details how your product or service will be produced and sold. –Sets specific objectives and describes how your business expects to achieve them. –Describes the backgrounds and experience of the people who will be running the business. Copyright © Texas Education Agency 2012. All rights reserved.5

6. Importance of a Business Plan The business plan –makes you think about all aspects of your business, –helps you secure financing for your business, –helps you communicate your ideas to others, and –serves as a tool for managing your business. Copyright © Texas Education Agency 2012. All rights reserved.6

7. Assignments  Road to Success Assignment  Success does not come quickly for most entrepreneurs. It takes time, perseverance, and hard work for most individuals to succeed. Walter Elias Disney is a good example of an entrepreneur who took the idea of animated films and developed an entertainment empire through hard work and perseverance. Put the names of 30+ entrepreneurs in a hat for students to select. Ask students to research the entrepreneur they selected and design a mural that shows the struggles/challenges that the entrepreneur overcame to reach success. The mural should begin with the creative idea and continue through growth of the entrepreneur’s business idea.  Business Proposal Presentation  Ask students to propose a 200-room luxury hotel/convention center for the new town center for a growing, upscale suburb of a major city. The proposal should include a description of the hotel, projected customers for the hotel, business that the hotel will attract to the community, and sources of finance for the new business. The presentation should also include what financial institutions and venture capitalists will provide startup funds for the hotel. The Internet and other resources will provide valuable information about major hotel chains and the procedure for building an additional hotel. Students will present their information to the class in the form of a digital presentation.  Research that Community  Entrepreneurs must conduct thorough research before deciding to locate a business in a particular community. The research is conducted to learn about the demographics for the community, traffic flow, tax advantages, growth potential, crime rate, schools, workforce, and other factors. Ask students to choose a city for a selected business. Then students will design an information folder about the city. The purpose of the marketing folder is to attract businesses to the community. Copyright © Texas Education Agency 2012. All rights reserved.7