SECTION II:
BEFORE THE DOORS OPEN:
INVOLVING STUDENTS AND OTHER STAKEHOLDERS FROM DAY 1

• Clarifying Goals and Objectives
• Building a Team
• Choosing a Business Idea
• Writing the Business Plan
• Tool 1: Activity: Goal Post
• Tool 2: School-Based Enterprise Implementation Roles and Responsibilities
• Tool 3: Activity: Broken Squares
• Tool 4: Activity: Structures
• Tool 5: Brainstorming
• Tools 6 - 9

                    School-based enterprises (SBEs) get started in many different ways. In a rural community, the only hardware store closes and school administrators and other community members feel the need to start a new one. An urban science teacher may stumble upon the need for an SBE as she experiments with ways to add a hands-on dimension to her classroom. Students may decide a school needs a snack bar.

                    Regardless of who comes up with the idea, this guide assumes that responsibility for working with students will rest ultimately with a teacher. Furthermore, the teacher will be the primary engine for creating an SBE that blends profitability, learning opportunities, and social responsibility.

                    This section describes strategies and activities educators can use to involve an SBE's "stakeholders"--those who have a stake in how the SBE is to be set up and operated. In addition to the students and educator (who will be involved in the day-to-day operations of the SBE and therefore have much at stake), stakeholders might include the following individuals:

• School system and building administrators (including the business office)
  
  
• Parents
  
  
• Local business people
  
  
• Maintenance staff at the school
  
  
• Others who can help or who will be affected by the SBE's operations

                    It is wise to involve stakeholders as early as possible in the process. Most people appreciate being asked for their opinion and input on a project that affects them in some way. Even if a stakeholder does not end up with a large role in the SBE, he or she will have a chance to contribute his or her thoughts.

                    The steps outlined in this section should be useful even if you already operate an SBE. Indeed, all projects and enterprises can benefit from the steps outlined in this section, regardless of how long they have been underway. These activities can be good "shots in the arm." For example, it can be very useful to clarify goals and objectives for an SBE that has been operating for some time, for it may provide an opportunity for stakeholders to better understand each others' interests and needs. Or, developing a plan for an SBE that has been running for some time without one may help in identifying new products or services.

                    The following are a series of steps to help educators get the SBE off to a good start:

1.	Clarify goals and objectives for the SBE
2.	Build a team
3.	Choose a business idea
4.	Write a business plan
5.	Present the plan

                    We emphasize the need to develop a business plan for the SBE. Planning has several benefits:

• It is a logical way to involve stakeholders.
  
  
• It is an engaging and challenging educational activity.
  
  
• It provides a way to measure the SBE's performance over time.
  
  
• It increases the chances that the SBE will succeed, by identifying problems in business ideas before time and money are invested and by providing a chance to think creatively and strategically.

                    Even if (and perhaps especially if) an SBE idea is to be pursued regardless of its merit (for example, a teacher is told by the principal that he or she will start an SBE that does not seem feasible), a business plan involving students and other stakeholders is critical. If the idea is a good one, the business plan should confirm its merit. If it isn't, the plan can help the teacher and students argue for a different idea. At the end of this section, you will find a number of "Tools," activities and forms you may wish to use to accomplish the steps outlined in the section.

Clarifying Goals and Objectives

                    Unclear or unrealistic expectations can be a major problem for an SBE. In considering the same SBE idea, an administrator might see a chance to raise funds for a department, a teacher might see a way to teach job skills, and students may view it as simply a chance to create an afterschool job. These varying perspectives can lead to misunderstandings and conflict as the SBE moves from an idea to reality.

                    With a little preparation and forethought, schools can defuse a potentially difficult situation. First, identifying and acknowledging the variety of viewpoints among stakeholders can help them see the SBE in a bigger context and provide an opportunity to create an SBE that is a "win-win" situation. Second, being clear upfront about what an SBE can realistically accomplish--monetarily and educationally--can help the stakeholders in an SBE avoid disappointment and disenchantment down the road.

                    Here are some suggested steps for clarifying SBE goals and objectives:

A.	Arrange a meeting to discuss the goals and objectives of the SBE, to be led by the teacher who will be working with the SBE. Invite potential SBE stakeholders (see the list on the previous page for suggestions). Suggested agenda: Explain the purpose of the meeting Brainstorm: The potential benefits of an SBE Potential pitfalls of an SBE Use the activity "Goal Post" (see Tool #1 at the end of this section) to set appropriate goals for the SBE. Describe the process for developing the business idea, touching on the following: Who will develop the plan for the business Who will make the "go/no go" decision on the business When these two steps are to be completed Assign roles, responsibilities, and next steps.
B.	Provide participants with a concise, written summary of the goals of the SBE.
C.	Create a flow chart describing the roles of administrators, teachers, and students in creating and operating the SBE. (Figure 3 contains the matrix developed by Deborah McKoy, a graduate student at the University of California, Berkeley, to describe key stakeholders' responsibilities in the Oakland Unified School District's [OUSD's] AcademiesWork initiative. OUSD's Career Academies created a broad range of SBEs to provide work-based learning experiences for students. The Media Academy at Fremont High School, for example, operates a radio station, newspaper, and magazine.)

                    We offer the OUSD chart as an example of one way to describe the roles of various stakeholders in the process. The stakeholders in another school or school system may be different; for example, the level of participation by the District Office and local community organizations may be unique to OUSD, due to the systemwide nature of the Oakland effort. Nonetheless, this approach to describing the roles of interested parties can be very useful to educators undertaking an SBE. A blank matrix is included as Tool #2 at the end of this section.

Building a Team

                    SBEs provide an opportunity for students (and other stakeholders) to learn to work together effectively. Not only will a well-working team help ensure the success of the SBE, but developing the ability to work well with a group is an important skill for young people to carry with them as they graduate, enter the workforce, participate in communities, and start families.

                    Since schools do not always provide opportunities for students to work together (it's often called "cheating"), a teacher may find it useful to help students practice and reflect on the process of working together. The following exercises--or others focusing on group process skills--may be useful.

• The activity "Broken Squares" (Tool #3) focuses on communication and the need to share information so that the entire group can be successful.
  
  
• The activity "Structures" (Tool #4) is a fun way to practice planning and executing a project under time constraints.

Choosing a Business Idea

                    Selecting the right business idea is an important step in the process of establishing a successful SBE. Figure 4, "Ideas for School-Based Enterprises," a list generated by teachers at the REAL Institute in the summer of 1998, demonstrates the range of ideas that might be chosen for an SBE.

                    The process outlined below assumes that an interested group of students (along with other stakeholders if necessary) will be involved in this important choice; however, the same process could be undertaken by an individual. In any event, before starting on the process, be sure to share the following information with the group:

• The steps you'll be taking
  
  
• What's expected of them
  
  
• How the decision will be made

This last point is especially important. If students can truly choose the type of SBE they wish to plan and operate, they need to know that theymust make this decision. If their role is simply to recommend--to a teacher or to an administrator--the type of business that should be pursued, they need to know that, too. The process can work either way, but it is important that the teacher know ahead of time who is making the decision and communicate this to the group.

• Brainstorm SBE ideas for your school. Use the rules for brainstorming outlined in "Brainstorming" (Tool #5). Encourage students to consider ideas that are linked to curriculum areas or those that could serve markets outside the school.
  
  
• Once a list of potential ideas is generated, narrow the list to the five ideas with the most support among the students and teacher(s). To weigh the merits of these ideas, have students complete the "SBE Idea Feasibility Scan" (Tool #6) for each idea. These questions will be addressed in more detail through the business planning process. At this point, they are useful for checking SBE ideas for initial feasibility.
  
  
• Note: If there is no choice about the type of SBE to be operated, the Feasibility Scan can still be useful as a way to identify potential issues the business may face.
  
  
• Review the Feasibility Scans with the group, discussing the pros and cons of each idea. For this stage of the process, it may be advantageous to assign one student the role of facilitator whose job it is to ensure that all students have an opportunity for input.
  
  
• Decide! Once you have chosen a business idea, share the idea with stakeholders (e.g., administrators, community people) who were not involved in making the choice. Ask for their feedback. Inform them that the next step is to write a business plan for the SBE idea.

Writing the Business Plan

                    Once a promising SBE idea has been chosen, it is time to write a business plan for the idea. The business plan covers the three major components of any business--finances, marketing, and operations--plus a fourth area critical for SBEs: social responsibility. The business plan represents the planners' best educated guesses about how the business will function: how much money will be required at the start, how much money it will make, who will buy its products and services, what it will take to operate the business day-to-day, and how the business will use its resources to serve the school and larger community.

                    How long should the business plan be? How detailed? The answers to these questions depend on the SBE itself--for example, how complicated it is to run, how many products and services it will sell. One successful framework for developing a business plan for an SBE has been developed by Ann Smith, the instructor for the Business and Management (BAM) program at the Sno-Isle Skills Center in Everett, Washington. The areas addressed in the "BAM Business Mini Business Plan" (Tool #8) should be sufficient for most SBEs.

                    The business planning process is an excellent opportunity for collaboration between the SBE and academic programs, since there are abundant chances to utilize English, math, and research skills. If the SBE is linked to a particular academic area, the plan may be an opportunity for students to investigate some aspect of that discipline. For example, if the business is to be a photography studio, there are many learning opportunities in the area of science: how a camera works, the chemistry of the developing process, the environmental impact, and methods for safe handling of the chemicals used in the process.

• Use the Activity "Banker/Entrepreneur" (Tool #7) to help students identify the key components of a business plan. Discuss the components of the business plan that are most important for the chosen SBE.
  
  
• Using the "BAM Business Mini Business Plan" as a guide, help students develop a business plan for the SBE. Depending on the size of the group, it may be advisable to assign teams of students to particular sections of the business plan. If this is done, be sure to build in time for the subgroups of students to coordinate their efforts, share information, and review and revise the plan.
  
  
• Once the business plan is complete, help students develop a concise oral presentation of their idea to key audiences. These might include the entity that will provide start-up funding (if any), the school's administration, and the local School Board or other stakeholders. Use the activity "Drumroll, Please!" (Tool #9) to help prepare students. The activity includes tips for using videotape to help students practice and review presentations.

GOAL POST

Purpose:

• To set goals.
  
  
• To create support for achieving goals.

Materials:

• Copies of the "Goal Post" grid (1 per participant)

Time:
20-40 minutes

Procedure:

1.	Identify a particular project or period of time for which you want students to set goals (e.g., completing the business plan).
2.	Discuss the importance of goal setting and some ways to make the process more effective. One way to think about goals is to make them SMART (source unknown):
	S	Specific: Decide exactly what it is you want to accomplish, learn, or do and express it in specific terms.
	M	Measurable: How will you know when you've accomplished your goal? Figure out a way to measure your success.
	A	Attainable: Set yourself up for success; reach high, but not so high that your goal is out of reach.
	R	Responsible: Determine who is responsible for accomplishing the goal, and create circumstances that reinforce each person's responsibility. Start by publicizing the goal.
	T	Timed: Set a deadline (or several) and stick to it.
3.	Distribute copies of the "Goal Post" grid. Use one of your own goals to illustrate how to use the grid. In particular, explain that large goals such as completing the business plan should be divided into smaller, more manageable pieces.
4.	Ask participants to fill in the grid, making it SMART.
5.	Allow time for participants to post the goals they've set (orally and then on a bulletin board, for instance). Leave the grid sheets posted so that students keep the goals in sight and in mind.
6.	Frequently revisit the goals and check off those that have been accomplished. Celebrate success! If necessary, revise goals or set new ones to reflect changing needs or circumstances.

Reflection:
Discuss with students the effect of setting goals and then the feeling of accomplishing them. Questions such as these may be useful:

• Of the goals you set, which do you consider the most challenging at this point? Why?
  
  
• Do any of us share the same goals? How might we help each other achieve them?
  
  
• How can we stay focused on our goals?
  
  
• What other areas of your life might benefit from setting SMART goals?
  
  
• What are some ways you reward yourself when you achieve a goal?
  
  
• What other goal setting strategies work for you?

Journal: Review your "Goal Post" grid and make a list of the things you'll need to obtain or do in order to achieve the goals you've set. For example, in order to achieve the goal of writing a mission statement for your business, you might need to collect examples from other businesses first.

Bridges:

• An essential part of the process is to revisit goals periodically and check on progress. Work this into your lesson plans. Of course, goals may need to be adjusted, changed, or even eliminated given new information or circumstances.
  
  
• Ask an entrepreneur to visit the class and discuss ways goal setting is used in business (e.g., in setting sales goals or making financial projections). Ask the speaker to suggest effective goal setting strategies.

Name:___________________________________

Date:____________________

Goal Post

What is your goal? What do you want to achieve?	Who can help you achieve the goal?	When do you hope to complete it?	How will you accomplish the goal?	How will you know you've succeeded?
1.
2.
3.
4.
5.

School-Based Enterprise
Implementation Roles and Responsibilities

Stakeholder	Phase I Preparation	Phase II Planning	Phase III Approval & Start-up	Phase IV Operating
Students
Teacher(s)
Administrators
Community/Business
Other:
Other:

BROKEN SQUARES

Purpose:

• To practice group problem solving.
  
  
• To feel the effects of limited communication.
  
  
• To identify behaviors which help and/or hinder the group process.

Materials:

• Sets of broken squares (1 per group of 6 participants), each requiring . . .
  
  
  • 3 sheets colored card stock
    
    
  • 5 letter-sized envelopes
    
    
• Handouts: "Group Instruction Sheet" (1 per group)
                            "Observer Instruction Sheet" (1 per group)
• A table (or space on the floor) for each group, with seating for five

Time:
45 minutes

Procedure:

1.	Prepare sets of broken squares in advance, following the directions attached.
2.	Begin the activity by asking participants to define "cooperation" and to list behaviors and qualities which contribute to it. List responses on the board.
3.	Explain that you would like them to participate in an exercise that will require cooperation. Encourage them to practice the behaviors and qualities they identified in their discussion.
4.	Divide participants into groups of six and ask each group to choose an Observer. Give each Observer a copy of the "Observer Instruction Sheet" and the broken squares envelopes for his or her group. Ask him or her not to distribute the envelopes until you give the signal.
5.	Distribute a "Group Instruction Sheet" to each group. Go over the instructions together, then ask if there are any questions.
6.	Give the signal for groups to begin working. During the exercise, circulate among the groups to enforce the rules established on the instruction sheet.
7.	When all groups have completed the task, proceed with the debrief.

Reflection:
Lead a discussion of the activity with questions such as these:

• What was your assigned task? In a nutshell, how did you complete it?
  
  
• Observers, how did you answer the questions on your sheets?
  
  
• Revisit the class' definition of "cooperation." Which behaviors and qualities did your group use during this exercise? Which were difficult to apply in this case? Why?
  
  
• How did you feel during the activity? Why?
  
  
• How is this activity similar to other tasks which require cooperation? What similar experiences have you had?
  
  
• What did you learn from "Broken Squares"? How do those ideas apply to a business setting?

Bridges:

• Use "Broken Squares" as a way to build group unity and to focus on the behaviors which make for an effective group process.
  
  
• This activity may be particularly useful if participants are having trouble "bonding" and feeling a sense of shared purpose. In that case, be sure to emphasize the discussion of cooperation and the behaviors that promote it.
  
  
• Consider using this exercise during Community Analysis, when participants must work together and share information.
  
  
• Other activities which develop group problem-solving skills include "Cooperation Countdown," "Structures," "Toxic Spill," and "Trust Games."

GROUP INSTRUCTION SHEET

Each of you will be given an envelope containing pieces of paper which form squares. Your group's task is to form five squares of equal size, one square in front of each participant (not including the Observer). The rules are as follows:

1.	You may not speak, point, write messages, or communicate in any way.
2.	You may GIVE pieces away but may not TAKE pieces from others.
3.	You may not put pieces into the center of the table for others to take.
4.	You may give away pieces even if you have completed a square.
5.	All pieces must be used.
6.	Everyone in the group must have a completed square at the end.

After you have reviewed the rules above, give this sheet to your group's Observer. He or she will help enforce the rules during the exercise.

OBSERVER INSTRUCTION SHEET

As the group's Observer, you have two roles. First, you are to help your instructor enforce the rules on the "Group Instruction Sheet." Second, you should watch carefully and answer the following questions:

1.	Who is willing to give away pieces of the puzzle?
2.	What do participants do when they have completed their squares?
3.	Does anyone struggle with his or her square but refuse to give pieces away?
4.	Who is actively engaged in solving the puzzle?
5.	Describe the emotions of the group. What is the level of frustration?
6.	Do you notice a turning point at which the group begins to work together?
7.	Does anyone try to violate the rules? How do they respond when you enforce the rules?

Directions for Making a Set of Broken Squares

1.	Determine how many groups you will have (6 participants per group). You will need one set of squares for each group of six.
	Tip: If your class does not divide evenly into groups of six, you may reduce the number of people in each group and squares in each set. Or, you may ask the Observer to watch more than one group during the exercise.
2.	Make copies of the diagrams on the following pages on colored card stock. You will need one set of copies for each group. Be sure you don't mark on or cut up the originals.
	Tip: It may be easier to keep the sets organized if you copy each set on its own color of card stock.
3.	Carefully cut the pieces along the lines.
4.	For each set, scramble the pieces and put them randomly into five envelopes. Vary the number of pieces (2, 3, or 4) in each envelope. Put an elastic band around the five envelopes and keep them separate from the other sets.
	Tip: If you have made each set of squares a different color, mark the envelopes with that color to keep the pieces organized.
5.	The "solution" to the "Broken Squares" puzzle is illustrated on the following pages. Only share this with class members if no one can solve the puzzle!

Tool 4 Activity: Structures

STRUCTURES

Purpose:

• To explore the dynamics of group problem solving.
  
  
• To emphasize the need for planning and taking action in any undertaking.
  
  
• To practice working toward a goal.

Materials:

• Prize for the winning team (optional)
  
  Variation 1
  • Masking tape (1 roll per group)
  • Newspapers (1 five-inch stack per group)
    
    
  Variation 2
  • Transparent tape (1 roll per group)
  • Plastic drinking straws (about 50 per group)
    
    
  Variation 3
  • Uncooked spaghetti (20-40 pieces per group)
  • Gumdrops (5-15 per group)
    
    
  Option:Give different amounts of materials to each group, demonstrating that, in business, the distribution of resources is not always "fair."

Time:
60 minutes

Procedure:

1.	Divide participants into groups of three to five people. Choose a variation (1, 2, or 3 above) and distribute materials to each group. Ask them not to touch the materials until you have given instructions.
2.	Give the following instructions: Variation 1: "As a team, you are to plan and build a free-standing shelter which you can all fit inside, using only the newspapers and the tape. No other supports (such as walls, chairs, or ceiling) may be used, but you may tape your shelter to the floor if you wish. Total time for this task is 30 minutes. You may take as much time as you wish for planning, but once you start building, you may not go back to the planning stage. During planning, you may talk but not touch the materials. During building, you may touch the materials but not talk. Are there any questions?" Variation 2: "As a team, you are to build the tallest tower possible using only the tape and drinking straws. No other supports or materials may be used. Total time for this task is 20 minutes. You may take as much time as you wish for planning, but once you start building, you may not go back to the planning stage. During planning, you may talk but not touch the materials. During building, you may touch the materials but not talk. Are there any questions?" Variation 3: "As a team, you are to build the tallest tower possible using only the spaghetti and gumdrops. No other supports or materials may be used. Total time for this task is 20 minutes. You may take as much time as you wish for planning, but once you start building, you may not go back to the planning stage. During planning, you may talk but not touch the materials. During building, you may touch the materials but not talk. Are there any questions?"
3.	Be sure instructions are clear, then start the clock.
4.	Circulate among the groups while they are planning and building their structures (you may need to enforce the rules). Announce the time remaining periodically. After 30 (20) minutes, call time. Be sure everyone has a chance to show off their structure before the debriefing. Groups may clean up at this point or wait until after the debriefing.

Reflection:
Use questions such as the following to debrief the exercise:

• What were your feelings as you did this exercise? Did they change as you got into the exercise?
  
  
• What problems did you encounter, and how did you deal with them?
  
  
• Did "Structures" remind you of other situations you have been in? How?
  
  
• What did this activity suggest to you about group work? About planning and implementation? About yourself?
  
  
• How does this exercise relate to starting a business?

Bridges:

• This activity is a fun and active introduction to the business planning process--people are energized by the creativity and discussion it inspires.
  
  
• "Structures" draws attention to the importance of planning and doing. It may help students who are bogged down in some aspect of the business plan to keep moving forward.

BRAINSTORMING

Purpose:

• To generate a large quantity of data, ideas, or solutions.
  
  
• To encourage the free flow of ideas.

Materials:

• Flip chart or chalkboard

Time:
10-30 minutes

Procedure:
The object of "Brainstorming" is to generate a great number of ideas, data, or solutions without evaluation. The process promotes divergent thinking, reduces participants' inhibitions, increases creativity, and involves all group members. Develop questions or problems to be addressed prior to the Brainstorming session. The steps for Brainstorming are as follows:

1.	Review the rules for Brainstorming with participants: commentary, including nonverbal criticism, is allowed. is what counts. of ideas are welcomed. "Hitchhiking" on another participant's ideas increases the number of responses. and crazy" ideas are welcome. There are no "bad" ideas in Brainstorming.
2.	Work in groups of not more than about 12 members to encourage individual participation. Instruct each group to choose a recorder.
3.	Present the question or topic to the class.
4.	Allow 5-10 minutes for participants to list ideas or answers in one of two ways: In structured Brainstorming, each member of the group has a turn to share an idea in round robin fashion. A participant can choose to pass if she or he doesn't have an idea during a round. In unstructured Brainstorming, participants share ideas as they come to mind. Sometimes it is helpful to have two recorders if the ideas are flowing rapidly.
5.	Continue the session for a few minutes after the flow of ideas starts to slow. The best ideas often come at the end of a session.
6.	If the class has been divided into groups, ask the recorders to share their group's ideas with the class.
7.	Type the results of the Brainstorming session and distribute them to participants, if appropriate.

Variations:

• When a group starts to bog down, suggest that participants brainstorm the opposite question. For example, if the original question was "What are the best ways to promote a small business?" change the question to "What are the worst ways to promote a small business?"
  
  
• Try "role-storming," in which participants take on the role of someone else (e.g., a competitor, supervisor, or a banker). This is especially helpful when participants are reluctant to participate or afraid to offer "crazy" ideas.
  
  
• Call a "time-out" for a minute or two of silence during a particularly intense Brainstorming session. This tends to refresh participants and generate additional ideas.

Tips:

• When Brainstorming for the first time with a group, try a group brainstorm for 30-60 seconds, focusing on what comes to mind when hearing a single word (e.g., Oklahoma, baseball, apple).
  
  
• Focus on the quantity of ideas with encouragement like, "Let's try to generate another dozen!"
  
  
• Bring a whistle to class and blow it whenever someone criticizes an idea.