"Going Pro: Getting Your Small Business in Business"Introduction
Your brother has turned his passion for skateboarding into a full-time job: he sells more than 10 custom-built skate boards each week. He wants to expand his business, but he needs some pointers as well as some start-up revenue. When he asks you for advice on starting and running a small business, you direct him to the Small Business Administration Website. Lesson Description
Students will browse the information located on the Small
Business Administration Web site to learn how an entrepreneur
can plan, organize, and run a small business. Students will
answer four questions and apply this information by writing
a loan proposal for their business. Previous
Knowledge Expected
entrepreneur: person who organizes, manages, and assumes
the risks of a business in order to gain profits Applied Content Standards (from the Council for
Economic Education) Standard 14: Entrepreneurs are people who take the
risks of organizing productive resources to make goods and
services. Profit is an important incentive that leads entrepreneurs
to accept the risks of business failure. Instructional Objectives- Students will discover some of the resources of information
and assistance available to the small business owner over
the Internet and through government sponsored agencies.
- Students will understand that the entrepreneur is subject
to tax codes, government laws, and regulations that will affect
the owner's decisions.
- Students will apply this knowledge by writing a business
loan proposal.
Student
Web Activity Answers- The mission statement of the SBA is to "maintain and
strengthen the nation's economy by aiding, counseling, assisting,
and protecting the interests of small businesses and by helping
families and businesses recover from national disasters."
- A business plan defines the business and specifies goals.
Its basic components include a balance sheet, an income statement,
and a cash flow analysis. It helps owners think through important
issues, and it serves as a valuable tool when explaining the
business to lenders.
- The SBA provides technical assistance (training and counseling),
such as the Service Corps of Retired Executives (SCORE) which
provides one-on-one counseling at no charge. The SBA has Small
Business Development Centers that provide training, counseling,
research, and other specialized assistance. In cooperation
with the private sector, it also sponsors programs to help
launch small businesses. Publications, videos, tapes, and
software are available from the SBA. The SBA also provides
disaster recovery assistance.
- State regulations may include licensing and zoning laws.
Business taxes, worker's compensation, and minimum wage rates
may all affect your business. Additionally, you will have
to consider training procedures and an employee manual.
- Students' proposals will vary, but all should include information
regarding business description, management profile, market
information, and financial information.
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