SECTION II:
TOOLS
(continued)

• Tool 6: School-Based Enterprise Idea Feasibility Scan
• Tool 7: Activity: Banker/Entrepreneur
• Tool 8: BAM Business Mini Business Plan
• Tool 9: Activity: Drumroll, Please . . .

SCHOOL-BASED ENTERPRISE IDEA FEASIBILITY SCAN

Evaluator:________________________________	Date:__________________
Business Idea:

1.	What need(s) in the school or surrounding community does the proposed business meet?
2.	Would this business compete with other businesses, clubs, or projects inside or outside the school?
3.	Is the idea an appropriate one for a school to sponsor? Will the school be proud of the business? Why or why not?
4.	What facilities in the school would the business need to use, and are they available?
5.	What other classes in the school might provide assistance or help students gain knowledge on topics that would apply to the business?
6.	What expertise would the students and teacher(s) working in the business need to make the business successful?

BANKER/ENTREPRENEUR

Purpose:

• To build knowledge of business planning.
  
  
• To build understanding of the various parts of the business plan.
  
  
• To understand the different purposes of a business plan.
  
  
• To experience the dynamics of the interaction between bankers and entrepreneurs.
  
  
• To develop group process, problem-solving, cooperation, and participation skills.

Note: This activity is useful early in the business planning process, when participants may or may not have any prior knowledge of business plans and the planning process. The instructor should be familiar with the components of the business plan (see the following outline) and share the outline after the activity is over.

Materials:

• Copies of handouts:
  
  
  • "Instructions for Bankers" (1 per group of bankers)
    
    
  • "Instructions for Entrepreneurs" (1 per group of entrepreneurs)
    
    
  • "REAL Business Plan Outline" (1 per participant)
    
    
• Flip chart and markers
  
  
• Tape or pins

Time:
90 minutes

Procedure:

1.	Without giving away the "identity" of each group, divide the class into two groups (bankers and entrepreneurs) of no more than six people each. If the class has more than 12 participants, create additional groups. There should be the same number of "banker" groups as "entrepreneur" groups.
2.	Send the banker groups into a separate room.
3.	Without letting the groups hear each other's instructions, give each group a copy of the appropriate instructions, review them, and answer any questions about the assigned task. Give each group flip chart paper and a marker, and tell them they have 30 minutes to complete the task.
4.	Ask groups choose a recorder, facilitator, and presenter. They should then proceed with the task.
	Note: Groups may need help understanding that they are creating a "multi-purpose" outline, not a blueprint for a specific business. Also, they should focus on the sections to be addressed, not the content of those sections.
5.	While groups are working on the task, arrange the chairs in one room into two rows, facing each other across a space (or table) of about six feet. When they have finished working, ask the groups to come back together and sit with all the bankers on one side and all the entrepreneurs on the other.
6.	Ask the entrepreneurs to present their outlines first. If there is more than one group of entrepreneurs, allow all the groups to report.
7.	Next, ask the bankers to share their outlines in the same way.
8.	Encourage participants to suggest additional items for the outline. If they have not already realized it, help participants understand that what they have created is, essentially, a business plan outline.
9.	Hand out the REAL Business Plan Outline and allow discussion. Explain that business plans come in many forms; this one should work for most microenterprises.

Reflection:
Facilitate a discussion based on questions such as the following:

• What seemed most important to the entrepreneurs? To the bankers?
  
  
• Did your group struggle with any part of the assignment? Why?
  
  
• Why was the room set up the way it was for the presentations? What effect did this have on the presenters and the groups?
  
  
• What can entrepreneurs do to facilitate a good relationship with bankers and other potential lenders?
  
  
• What are the purposes of a business plan? How might a plan be used other than to seek funding?
  
  
• Many participants will know entrepreneurs who have never written a business plan and have been successful without it. Discuss the reasons for writing a plan and how it might improve one's chances for success.
  
  
• Review the REAL Business Plan Outline. Can you think of any business that would not fit this format? What other sections might be needed?
  
  
• For the business idea you are considering, which sections of the business plan will require the most research? About which sections are you most confident?

Bridges:

• After "Banker/Entrepreneur," give participants a chance to see and critique some sample business plans. The Small Business Administration, Chamber of Commerce, and other small business assistance centers may be able to provide copies.
  
  
• Ask participants (or small groups) to each obtain a business plan sample from a local business, being careful to explain the purpose of the request. Share these in class, then return them if requested to do so.
  
  
• Other business plan outlines are available in business textbooks, on the Internet, and in various small business resources. Assemble other outlines and ask students to compare them.
  
  
• Invite a local banker to class to share what he or she looks for in a business proposal.
  
  
• Invite an entrepreneur to class to discuss the ways he or she has used the business plan.

INSTRUCTIONS FOR BANKERS

You have money that you are willing to lend or invest in a business.

Your group's task is to outline what you would need to know about a potential borrower and his or her business before lending money. Try to create an outline that fits almost any business, not one specific business. Group topics under sections. You may want to use questions to get at the details in each section. For example, in the Management section, you might include the following questions:

• Who will manage the day-to-day operation of the business?
  
  
• What is the manager's background and experience?
  
  
• What training has he or she had?

At the assigned time, you will present your outline to a group of entrepreneurs (potential borrowers).

Before you start, assign three people in the group to the following roles:

Recorder - to write down the ideas as the group comes up with them

Facilitator - to keep the discussion moving and see that everyone has a chance to participate

Presenter - to share the group's ideas with the class

---------------------------------------------- cut here --------------------------------------

Instructions for Entrepreneurs

You want to start a business, and you need a substantial loan in order to do so.

Your group's task is to outline the information you would use to convince potential lenders to finance your business. Try to create an outline that fits almost any business, not one specific business. Group topics under sections. You may want to use questions to get at the details in each section. For example, in the Management section, you might include the following questions:

• Who will manage the day-to-day operation of the business?
  
  
• What is the manager's background and experience?
  
  
• What training has he or she had?

At the assigned time, you will present your outline to a group of bankers (potential lenders).

Before you start, assign three people in the group to the following roles:

Recorder - to write down the ideas as the group comes up with them

Facilitator - to keep the discussion moving and see that everyone has a chance to participate

Presenter - to share the group's ideas with the class

REAL ENTERPRISES BUSINESS PLAN OUTLINE

I.	Executive Summary One page summary of the plan: purpose, who prepared it, brief description of the business, its products and owners, and form of organization. If you are seeking a loan, include the amount requested, over what period you wish to repay it, the use of the loan proceeds, collateral you are prepared to offer, and your equity investment.
II.	Product or Service Detailed description of the product or service (include an example or photo if possible)
	A.	If you are selling a product: key suppliers and your terms and arrangements with them
	B.	If you are selling a service: which services will be provided at the business location and which will be delivered "in the field"
III.	Marketing
	A.	Target market/customer profile: specify age, gender, income, preferences, location, and so on
	B.	Industry analysis: what the trends are in your industry
	C.	Market analysis: total market size and the share you will capture, seasonality, unique aspects
	D.	Describe the "five P's" for your business
		1.	Product: how you will design and package your product/service
		2.	Price: how you will price your product/service
		3.	Place: how products (and related services) are distributed to the consumer
		4.	Promotion: what media and marketing methods you will use to generate awareness and interest about your product/service; include examples of your promotional materials (brochures, print ads, copy for radio ads, calendar of events for special/regular promotions)
		5.	People: who will be responsible for marketing your product/service
	E.	Competition: list of competitors by name, location, and their strengths and weaknesses; how you will succeed against them; how they will react to your entry into the market
IV.	Operations
	A.	Legal structure and why you chose it; include legal/governing documents (articles of incorporation and by-laws for corporation, partnership agreement for partnership)
	B.	Management and personnel
		1.	Who the key managers/owners are and what relevant experience and background they bring to the business (include résumés)
		2.	Describe non-management positions, responsibilities/qualifications, personnel policies
	C.	Customer service: procedures and policies regarding your work and how you will treat customers
	D.	Location and operations
		1.	Your facility, including a store layout, description of business image, hours of operation
		2.	Operations plan: how you will deliver your product/service to the customer, from start to finish (who does what tasks, how long it takes, etc.)
		3.	Renovations and equipment list (including prices and condition--new or used)
		4.	Taxes to be paid, licenses required, and insurance needed
	E.	Key people: who will provide accounting and legal services, technical assistance and support
V.	Financials
	A.	Cash flow projections for three years
		1.	Loan amortization schedule
		2.	Detailed assumptions for each line item
	B.	Breakeven analysis
	C.	Personal financial statement for all owners, co-signers
	D.	Risk factors: identify major risks and describe how business will overcome them

BAM BUSINESS MINI BUSINESS PLAN

Executive Summary

Business name:

The purpose or mission of the business:

The image you wish this business to portray:

Form of ownership of the business will be a partnership. To cover the situations that may arise with this form of ownership, complete the attached partnership agreement for your group.

BAM BUSINESS PARTNERSHIP AGREEMENT

Partner Information

Name	Address	Phone #
How will the responsibilities of the business be shared?
How will decisions about the business be made?
How will the profits of the business be shared?
What happens if a partner leaves the business?
What other miscellaneous information needs to be recorded?
By signing below, all partners indicate their agreement to and will abide by the above specifications.
Partner signatures:	Date:

Product or Service

Describe in detail the product(s) or service(s) your business will be providing.

Prepare and attach a sample menu, product list, sample book, or other information on your product(s) or service(s).

What are the benefits of your product(s) or service(s)?

List the suppliers you will be using for the product(s) or service(s) of your business:
Vendor Name	Address	Phone #

Marketing Plan

Describe your target customer:

Expected age:

Expected gender:

Financial status:

Where will you typically find your target customer?

What need or want will your product(s) or service(s) provide for your target customer?

Complete the attached market research questionnaire and obtain answers from ten potential target customers.

BAM Business Market Research

1. What do you think about the name of the business?
#1 _____________________________	#6 _____________________________
#2 _____________________________	#7 _____________________________
#3 _____________________________	#8 _____________________________
#4 _____________________________	#9 _____________________________
#5 _____________________________	#10 _____________________________
2. How much would you pay for our product(s) or service(s)?
#1 _____________________________	#6 _____________________________
#2 _____________________________	#7 _____________________________
#3 _____________________________	#8 _____________________________
#4 _____________________________	#9 _____________________________
#5 _____________________________	#10 _____________________________
3. How would you improve our business idea?
#1 _____________________________	#6 _____________________________
#2 _____________________________	#7 _____________________________
#3 _____________________________	#8 _____________________________
#4 _____________________________	#9 _____________________________
#5 _____________________________	#10 _____________________________
4. What do you think are the main selling points of our business?
#1 _____________________________	#6 _____________________________
#2 _____________________________	#7 _____________________________
#3 _____________________________	#8 _____________________________
#4 _____________________________	#9 _____________________________
#5 _____________________________	#10 _____________________________
5. How should we promote our business?
#1 _____________________________	#6 _____________________________
#2 _____________________________	#7 _____________________________
#3 _____________________________	#8 _____________________________
#4 _____________________________	#9 _____________________________
#5 _____________________________	#10 _____________________________
6. What other product(s) or service(s) do you suggest for our business?
#1 _____________________________	#6 _____________________________
#2 _____________________________	#7 _____________________________
#3 _____________________________	#8 _____________________________
#4 _____________________________	#9 _____________________________
#5 _____________________________	#10 _____________________________

Attach here a sample of your business' logo.

Describe your three main competitors:

Name	Location	Strength	Weakness
1.
2.
3.

What is your business' competitive edge over the competition?

Describe the marketing method(s) that will be used to sell to your customers.

What are your projected monthly sales goals for the business?

Sept. $ __________	Jan. $__________	Apr. $ __________
Oct. $ __________	Feb. $ __________	May $ __________
Nov. $ __________	Mar. $ __________	June $ __________
Dec. $ __________

How did you arrive at these projections? Show your calculations.

What are your costs to produce your product(s) or service(s)? Itemize below and total:

What will you be selling the item for?

What will your profit be on each item?

What will your profit % be?

Purchasing Request

Date:_________________________		Prepared By:_________________________
Business:__________________________		Vendor:_________________________
Item Stock # Quantity Unit Price Total
Total

Sales Promotion Plan

Business: _____________________________
Month October	Theme	Activities
November
December
January
February
March
April
May

Operations Plan

What are your hours of operation?

Complete on the attached "BAM Business Production Schedule" a step-by-step description of how your product(s) or service(s) will be ordered and produced. Set up any forms or notebooks that will be used in your system.

Complete the attached "Monthly Inventory Count" to document all of your start-up inventory. When finished, compare it to last year's final count if available.

List all customer services and policies you will offer in your business:

What environmental issues affect your business and how will you deal with them?

What taxes are applicable to the business? What are their rates or costs?

What permits or licenses apply to the business?

What do they cost?

Who needs to have them?

How are they obtained?

If applicable, list the partners of the business and check them off as they obtain the required permits.

What equipment or production training is required to perform the duties of this business?

Create a training schedule and track completion of the training by each partner.

BAM Business Production Schedule

In the space below (and on additional sheets if necessary), write a step-by-step description of how your product(s) or service(s) will be ordered and produced. Set up any forms or notebooks that will be used in your system. Try to be as detailed as possible so that someone entering the business a month from now could read this and be able to complete the process.

Monthly Inventory Count

Date	Counted by	Plu #	Item Description	Start Inv.	+ Units Rec.	- Units Sold	= Ending Inv.	Phys. Count	Over/ Short	Explanation

BAM Business Training Schedule

Business: _____________________________

List the training activities that need to take place to be able to complete production and use all of the equipment in your business. List the names of each partner across the top and indicate when each of them are "competent" to perform the activity by entering the date in the appropriate box.

Training Activity

MANAGEMENT, STAFFING, AND FACILITY PLAN

Complete the "BAM Business Rotation Schedule" for the year.

Determine the "Code of Conduct" your business wishes to follow:

Complete and attach a "Weekly Chores" form or similar schedule to assign cleaning and miscellaneous tasks. This schedule can be for as long a period of time as you wish.

Draw and attach a facility layout of your business, including all equipment, supplies, and inventory.

BAM Business Rotation Schedule

Rotation #1 - October-November Merchandising Operations Team Leader/Personnel Financial Marketing

Rotation #2 - December-January Merchandising Operations Team Leader/Personnel Financial Marketing

Rotation #3 - February Merchandising Operations Team Leader/Personnel Financial Marketing

Rotation #4 - March Merchandising Operations Team Leader/Personnel Financial Marketing

Rotation #5 - April Merchandising Operations Team Leader/Personnel Financial Marketing

Complete the "Weekly Chores List" to assign team members cleaning and miscellaneous tasks. This schedule can be for as long a period of time as you wish.

Weekly Chores List

Completed by: ____________________________			Business: ______________________
Dates: ______________ through _______________
Activity Monday Tuesday Wednesday Thursday Friday

Financial Plan

Complete purchase requests for all initial inventory, supplies, and equipment purchases and attach. Add the request totals together:

Your start-up expenses total: The amount of cash available to start your business: Additional funding needed (a minus b):

$ __________ $ __________ $ __________

Estimate the cashflow of your business on the following page.

	Start-Up	Month:	Month:	Month:	Month:	Month:	Month:	Month:	Month:	Month:	Month:
Beginning Cash Balance
Income= ______% Increase Over Last Year's Sales
Expenses
Ending Cash Balance

Social Responsibility

What community need would you like to address with a portion of the profits of your business?

What percentage of your profits will you allocate to this community need?

In what other ways will your business practice social responsibility?

DRUMROLL, PLEASE . . .

Purpose:

• To identify and communicate the major strengths of the business plan.
  
  
• To plan, prepare, and deliver an oral presentation.
  
  
• To practice discussing the business with an audience beyond the class.
  
  
• To give each entrepreneur an opportunity to publicize her or his business and the work she or he has done.
  
  
• To prepare to present the plan for funding.

Note: Students are ready for this activity when the final drafts of the business plan are complete. All participants, not just those who will apply for loans, should present their plans. As the instructor, you will have to make arrangements in advance to be sure the equipment, people, and atmosphere are in place to make "Drumroll, Please . . ." a suitable culmination of the class's accomplishments. This is an excellent opportunity to involve members of the community.

Materials:

• Copies of handouts:
  
  
  • "Preparing Your Presentation" (1 per student and 1 per reviewer)
    
    
  • "Observation Record" (3 per presentation)
    
    
• Video camera, VCR, and monitor
  
  
• Copies of participants' completed business plans (1 per reviewer)
  
  
• Conference table or similar arrangement of desks and chairs
  
  
• Seating for reviewers and audience
  
  
• Props and equipment as needed by student presenters
  
  
• Audience (classmates, community members, administrators, press, and so on)
  
  
• Reviewers (4-6 people with knowledge of small business, at least ¹/₂ from outside class)
  
  
• Nametags (optional, 1 per person)
  
  
• List of presenters and businesses in order of presentation (1 per student and guest)
  
  
• Refreshments, certificates, other means of recognition for students (optional)

Time:

• Time to prepare presentations (should be done outside class)
  
  
• 15-25 minutes per presentation (including speech, Q&A, transition time)
  
  
• 30-45 minutes for review and discussion

Procedure:
Preparing the Presentation

1.	Distribute copies of "Preparing Your Presentation" and go over guidelines together. Answer questions and make it clear that everyone will participate, and that the presentations are a "big deal." If possible, schedule presentations at this time (deadlines help!).
2.	In groups of three to five, students should take turns answering the Ten Topics questions on the handout. Encourage them to give each other constructive feedback and to take notes for themselves.
3.	Ask participants to create an outline of the presentation and then fill in specific information from their business plans. Encourage students NOT to write a script, but simply to make notes for each section. Scripted presentations usually sound stiff and tentative.
4.	Encourage students to practice their presentations several times for various audiences (parents, peers, the mirror, and so on) before stepping into the spotlight. If possible, allow students to videotape their practice sessions in order to review and critique themselves.
	Tip: Reviewing the videotape on fast-forward emphasizes the speaker's physical gestures and mannerisms. Physical idiosyncrasies (talking with hands, crossing arms, excessive body movement) will be apparent on fast-forward.

Preparing for the Question and Answer Session

5.	Ask participants to trade business plans. Each person reads another person's business plan, and for each section writes at least one probing question (a question that seeks new or additional information) about the topic addressed. Readers switch plans and repeat the process until every plan has been read and questioned at least three times (plans will take varying amounts of time to review).
6.	Return the plan to its author. Students should use the questions to prepare for the Q&A session of the presentation.

Additional Preparation

7.	Distribute copies of the "Observation Record" and use it to go over your expectations for the presentations. If students are earning a grade for the class, be sure the presentation figures significantly in that grade, and explain clearly the criteria. You may prefer to have the class devise its own review instrument and grading scale rather than using the "Observation Record."
8.	Explain that each student presenter will be evaluated by a team of four to six reviewers. At least two of these should be fellow students (allow the student to choose one of his or her peer reviewers). You may need to coach students in advance on how to give honest, specific, constructive criticism (their tendency is to be too easy and "polite" with each other).
9.	Prepare outside reviewers for their role in the presentations. Send them copies of the business plans to be presented at least one week in advance, or allow time before/between presentations to scan the next plan. You may also find it useful to give them copies of "Preparing Your Presentation" and the "Observation Record" so that they know the standards they are to apply. Emphasize that the reviewers' role is to evaluate the plan, the presentation, and the student's readiness to implement the plan. Confirm in writing where and when the presentations are to take place.
10.	Assign people to each of the following roles for the day of the presentations: Greeter (welcomes visitors, prepares refreshments, makes introductions, and so on) Photographer (runs video equipment, takes photographs) Technical assistant (helps set up displays, microphone, and so on) Timekeeper (keeps presentations within time limits)
11.	Be sure expectations, schedule, and responsibilities for the day of presentations are clear to everyone. Visitors to the class should be made to feel welcome and be impressed with the overall organization and "polish" of the event.

Show Time!

12.	Depending on the size of the class, you may decide to spread the presentations out over several sessions, or to highlight only the best three to five plans. However it is done, be sure each presenter is given the same eager attention and amount of time.
13.	If nametags are used, be sure all students and visitors have them.
14.	Hand out the list of presenters/businesses so that everyone knows the order of presentations.
15.	Introduce outside reviewers and other visitors to class. Check that reviewers have the plans and forms they need.
16.	Just before each presentation, choose the peer reviewers for the presentation (see #8 above) and give them copies of the "Observation Record." Be sure they are seated where they can see and hear.
17.	For each presentation, introduce the student by name and business. Remind everyone of the time limit, then proceed with the presentation.
18.	Conduct presentations as follows: up to 10 minutes to speak, and up to 10 minutes for Questions and Answers, no longer than 20 minutes total (many will take less time). The timekeeper should politely but firmly keep things on schedule.
19.	After all the presentations are completed, thank the presenters, reviewers, and guests. Collect copies of business plans and "Observation Records" to keep until grades are assigned or to give directly to presenters.

Reflection:

• Allow students to review the videotapes privately.
  
  
• As a class or in small groups, let students take turns receiving positive feedback about their presentations. Ask people to be specific with their praise ("Sam, your explanation of the cash flow statement was especially good." or "Nikki, you came across as confident but not arrogant.")
  
  
• Encourage students to discuss the presentations and their reactions to being in the spotlight. Help them identify ways they can improve their presentations in the future.

Journal: Using the "Observation Record" or another tool, evaluate your own (videotaped) presentation. Be sure to include positive feedback and constructive criticism. Identify changes or improvements that need to be made before presenting the plan again.

Bridges:

• Encourage students to practice making impromptu two-minute speeches so that they get used to speaking in front of an audience.
  
  
• Questions raised during presentations may lead to further revision of the business plan.
  
  
• This activity helps prepare students for similar presentations of the plan to potential funders.
  
  
• Be on the lookout for business plan contests for students to enter. If you have a chance to nominate a promising entrepreneur for an award, do so!

PREPARING YOUR PRESENTATION

You will have a total of 20 minutes to present your business plan and to answer questions from the review board. The "speech" segment may be no longer than 10 minutes. The Q&A session will also be limited to 10 minutes. Do not try to cover your entire plan in the speech; select your main points and let the review board ask about the others.

The Ten Topics: Be prepared to address, either in your speech or during the Q&A session, the following topics:

1.	Who are you?
2.	What is the name and nature of your business?
3.	How did you get interested in this business?
4.	What relevant experience and qualifications do you have?
5.	How much time does it take to produce one of this product/provide this service for one customer?
6.	How will operating this business fit into your lifestyle?
7.	How much do you expect to pay yourself on an hourly basis?
8.	Who is your competition? How will you compete successfully with them?
9.	On what have you based your financial projections?
10.	Why do you think your business will succeed?

Presentation Checklist: You'll know you are ready for your presentation when you can check off all the following items:

______ Final Draft of Business Plan

______ Outline of Main Points

______ Knowledge of the Ten Topics

______ Supporting Evidence/Documentation

______ Props, Samples, Visual Aids

______ Equipment

______ Comfortable, Appropriate Clothes

______ PMA (Positive Mental Attitude)

OBSERVATION RECORD
REAL ORAL PRESENTATIONS

Presentation Skills confident, relaxed, and enthusiastic Speaks clearly and understandably Uses appropriate gestures and body language Has neat, professional appearance	Rating:		/100
Notes:		__________
The Speech Is well-organized; makes good use of time Keeps listeners' interest Focuses on most important ideas Demonstrates knowledge of business Uses props, visual aids, etc. well	Rating:		/100
Notes:		__________
Question and Answer Session Answers the questions that are asked Gives complete and knowledgeable answers Provides information not already covered	Rating:		/100
Notes:		__________