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Teacher ManualVersion 4.0

©2013 The BizWorld Foundation. BIZWORLD® is a registered trademark owned by The BizWorld Foundation. Program contents are for individual use only. Commercial use or sale of programs is prohibited unless written consent is obtained from The BizWorld Foundation.

Dear Educator,

Welcome to BizWorld! This program was created to inspire both you and your students. It is

a hands-on program that engages students and provides them with an innovative and exciting

platform for learning.

The BizWorld Foundation’s interdisciplinary, project-based program gives students the

opportunity to start and run their own companies. Students learn the basics of entrepreneur-

ship, business, and finance while they engage in activities that reinforce math, social studies,

language arts, and economics. BizWorld emphasizes the value of teamwork, cooperation,

and communication as students work in teams to create and run successful companies. Partici-

pation in the simulated friendship bracelet industry enables students to recognize the practical

application of core subject material while engaging them in authentic opportunities for apply-

ing 21st Century skills.

This updated version of the BizWorld program was designed in response to feedback from

teachers like you, featuring a new format to facilitate its use. If at any time you have questions

about the BizWorld program or suggestions to offer, do not hesitate to contact The BizWorld

Foundation offices. We are here to help and glad to be of assistance.

Thank you for your support!

The BizWorld Foundation Team

The BizWorld Foundation

(415) 503-5880

1 (888) 4-BIZKIDS

www.bizworld.org

[email protected]

Facebook: The BizWorld Foundation

Twitter: @bizworldorg

�e BizWorld Foundation

�e BizWorld FoundationThank you for downloading BizWorld! Before beginning the BizWorld program, please take a moment to read through and complete the following steps:

1. Register your class – we want to know where BizWorld is being taught and who’s teaching it!

2. Prepare for teaching by printing and cutting out your BizBucks and stock cards (included in this download). For your convenience, we have pre-assembled supply packs (includes stock cards, BizBucks, and string) available for purchase in our store.*

3. Photocopy student and company packets for your students. Pre-printed student and company packets can also be purchased in our store.*

4. Have your students complete both the pre-assessment and post-assessment online. This information is vital to our con-tinuous efforts to improve our programs and provide entrepreneurship education to kids worldwide! Need another reason? When we receive your students’ pre-/post-assessments, we will send you a free pack of string so you can teach the program again!

5. Bookmark the BizWorld online resources which provide:6. Links to supplemental activities and homework resources 7. Links to program materials8. Online assessments9. Standards alignment

10. Share your classroom success via Facebook or Twitter. Post photos, videos, and stories about your experience with BizWorld, and visit our Facebook page to participate in our weekly teacher contests!

Most importantly, we are here to help you and provide as much (or as little) support as you need. Don’t hesitate to call or email at the info below. Good luck with your first session, and keep us posted on your progress!

The BizWorld team(415) 503-5880Facebook: The BizWorld Foundationtwitter: @[email protected]

*If you would prefer to use a BizWorld kit to teach the program, you can purchase one in our store or apply here for a kit sponsored by one of our generous donors.

http://www.bizworld.org/teachers/index.php?Resources-26

https://twitter.com/bizworldorg

https://twitter.com/bizworldorg

mailto:[email protected]

http://www.bizworld.org

http://blog.bizworld.org

http://www.facebook.com/thebizworldfoundation



http://www.bizworld.org/teachers/index.php?41

http://www.brainshark.com/bizworldfoundation/vu?pi=zHezamhEEz8bcTz0&intk=757043069

http://www.brainshark.com/bizworldfoundation/vu?pi=zHJzOESrRz8bcTz0&intk=551655997

https://bizworld.secure.force.com/pmtx/cmpgn__MiniStore?id=701U0000000FEUl

https://bizworld.secure.force.com/pmtx/cmpgn__MiniStore?id=701U0000000FEUl

CONTENTSTHANKYOUBizWorld: Entrepreneurship, business, and finance program for children in grades 3-8.

By: Tim Draper

With: Catherine Hutton Markwell April Bond Joyce Friedrichs Celeste Huffstutler

Cover/Creative Design: Wendy McArdle Illustrations: Dania Mallette

Additional acknowledgments:The BizWorld Foundation would like to thank the following educators who contributed to the develop-ment of this program through feedback, participation, and continued support.

Jennifer Bruzzone Our Lady of Mount Carmel Redwood City, CA

Sheila Byrd Education Policy Consultant Washington, DC

Shari Colvin Dassel Elementary Dassel, MN

Marian Connelly St. Cecilia School San Francisco, CA

Rob Curry Piedmont Middle School San Jose, CA

Page Freyermuth Marin Country Day School Corte Madera, CA

Mike Harris North Star Academy, RCSD Redwood City, CA

Sherry Kallman Highlands Elementary San Mateo, CA

Rita R. Littrell, PhD University of Arkansas Fayetteville, AR

Nikole Manou Nixon Elementary Palo Alto, CA

Sharon Warner Eagle View Elementary Somerset, PA

Other programs from The BizWorld Foundation:

BizWiz: Money management and investment

BizMovie: Entrepreneurship, business, and technology

�e BizWorld Foundation

The BizWorld Foundation................................................................................................................... i

BizWorld Program Overview.......................................................................................................... ii

Preparing to Teach BizWorld........................................................................................................... iii–iv

Business 101: The Basics..................................................................................................................... 1–31 Session One: Business Basics......................................................................................................... 1–5 News Flash 1.................................................................................................................................. 6

Session Two: Applying for Jobs.................................................................................................... 7–10 Memo: Business Basics Key......................................................................................................... 11 Entrepreneurial Cycle.................................................................................................................... 12 Online Job Board Key ...................................................................................................... 13

Session Three: Building the Team................................................................................................. 14-18 Team Building Activities................................................................................................................ 19

Session Four: Financing Your Company.................................................................................... 20-25 Memo: The Entrepreneurial Cycle Key...................................................................................... 26 Teacher/Volunteer Roles.............................................................................................................. 27 Sample Company Ledger............................................................................................................. 28 Teacher Ledger............................................................................................................................... 29-30 Stock Pie Chart............................................................................................................................... 31

Part A: Design........................................................................................................................................... 32-45 Session Five: The Design Process.................................................................................................. 32-36 Venture Capitalist Pitch Rubric..................................................................................................... 37 Venture Capitalist Questions........................................................................................................ 38 BizMart Price List............................................................................................................................ 39

Session Six: Building a Prototype................................................................................................ 40-44 Sample Finance Worksheet A..................................................................................................... 45

Part B: Manufacturing.......................................................................................................................... 46-67 Session Seven: The Manufacturing Process.............................................................................. 46-51

Venture Capitalist vs. Bank Key................................................................................................... 52

News Flash 2.................................................................................................................................. 53

Banker Questions........................................................................................................................... 54

Bank Loan Receipt.......................................................................................................................... 55

Session Eight: Manufacturing Your Product............................................................................. 56-59

Session Nine: Pricing Your Product.............................................................................................. 60-64

Sample Pricing Worksheet........................................................................................................... 65-66

Sample Finance Worksheet B...................................................................................................... 67

CONTENTSTABLE OF CONTENTS

Part C: Marketing................................................................................................................................... 68-80 Session Ten: Marketing Your Company..................................................................................... 68-73 Memo: Logos and Slogans Key.................................................................................................. 74 New Flash 3 ...................................................................................................................... 75

Session Eleven: Promoting Your Product................................................................................... 76-79

Sample Finance Worksheet C .......................................................................................... 80

Part D: Sales.............................................................................................................................................. 81-99 Session Twelve: Sell! Sell! Sell!...................................................................................................... 81-85

Session Thirteen: Valuing Your Company................................................................................. 86-92 Sample Income Statement............................................................................................................ 93 Sample Balance Sheet.................................................................................................................. 94 Sample Company Performance Summary................................................................................ 95 Company Performance Summary............................................................................................... 96 Certificate of Completion............................................................................................................. 97 Teacher Evaluation......................................................................................................................... 98-99

Glossary....................................................................................................................................................... 100-101

The BizWorld program continues to be revised as The BizWorld Foundation receives feedback from users. Contact The BizWorld Foundation for the latest version of the BizWorld program or visit www.bizworld.org.

CONTENTSTABLE OF CONTENTS

Teacher Manual i

BIZWORLDTHE BIZWORLD FOUNDATION

VisionA world where children are given the tools they need to pursue their dreams, and are thereby inspired to become financially responsible, contributing members of society.

MissionTo challenge and engage children across the cultural and economic spectrum through experiential learning pro-grams that teach the basics of business, entrepreneurship, and money management, and to promote teamwork and leadership in the classroom.

HistoryThe BizWorld Foundation founder, venture capitalist Tim Draper, was asked by his eight-year-old daughter to describe what he did at work every day. Excited by the opportunity to explain entrepreneurship and business to a third grader, he used his daughter’s enthusiasm for making friendship bracelets to create a project-based program in which students learn to start and run their own business. From initial funding to marketing campaigns and financial statements, the flagship BizWorld program allowed students to not only understand how business works but also enabled them to experience it firsthand.

The need and demand for BizWorld’s hands-on, interdisciplinary approach to learning quickly became apparent. The BizWorld Foundation was established in 1997 to make BizWorld programs available to all educators, with the goal of inspiring children both nationally and on a global level. The BizWorld Foundation continues to create innovative programs to support the mission and vision of the organization.

The BizWorld Foundation Objectives

To create relevance in the classroom: The BizWorld Foundation programs motivate students to excel in school by teaching traditional subjects within a real-world context.

To improve financial awareness: The BizWorld Foundation programs empower students with the skills they need to become financially responsible members of society.

To encourage achievement: The BizWorld Foundation programs inspire students to think big and realize that a little ambition holds a lot of potential.

Contact InformationThe BizWorld FoundationToll Free: 1 (888) 4-BIZKIDSPhone: (415) 503-5880Fax: (415) [email protected]

ii Teacher Manual

BizWorld is an interdisciplinary, project-based program designed to accom-modate students in grades 3–8. Students learn the basics of entrepreneur-ship, business, and finance as they engage in activities that reinforce math, social studies, language arts, and economics. BizWorld emphasizes the val-ue of teamwork, cooperation, and communication as students work in teams to create and run successful companies.

StructureThe BizWorld program is designed to be flexible. The program consists of 13 sessions, each approximately 50 minutes in length, but sessions may be combined and modified to accommodate other blocks of time (i.e., block scheduling, after-school programs, or full-day camp environments).

Many teachers choose to have “BizWorld Week” at their school instead of teaching the program in 13 separate sessions. Below is a sample schedule for hosting a “BizWorld Week” at your school:

• Day 1: Business 101 (Sessions One–Four) .....................3 hours

• Day 2: Part A: Design (Sessions Five–Six) ......................3 hours

• Day 3: Part B: Manufacturing (Sessions Seven–Nine) ..3 hours

• Day 4: Part C: Marketing (Sessions Ten–Eleven) ...........2 hours

• Day 5: Part D: Sales (Sessions Twelve–Thirteen) ...........2 hours

The BizWorld KitThe BizWorld kit contains the materials you need to teach the program:

• Teacher Manual (includes lesson plans, teacher resources, answer keys, vocabulary)

• Pre-printed Student and Company Packets (enough for 30 students)

• Shares of stock (six sets of 10 shares of stock)

• BizBucks ($1BB, $5BB)

• Bracelet string (sufficient for a class of 30+ students)

• Silicone bracelet

PROGRAMBIZWORLD PROGRAM OVERVIEW

Teaching TipsAdditional activities, teaching re-sources, homework, and correlations to standards (including the Common Core State Standards) are available on The BizWorld Foundation web-site, www.bizworld.org.

Before you begin the program, think about your overall objectives for your students and use as many or as few of the supplemental resources as you need to meet your goals. Proceed with a plan that works for you and your classroom. Take this program, and make it your own!

Teacher Manual iii

PREPIn order to be well prepared for the entire program ahead of time, we suggest that you complete these tasks the week before you begin teaching. Otherwise, you can prepare for each lesson as you go along (see “Before You Teach” and “Materials and Resources” at the beginning of each session):

• Go to www.bizworld.org to register your class and review the online assessments, resources, and evaluations

• Join The BizWorld Foundation social media community for resource updates and teacher contests

• Review Teacher Manual, Student Packet (SP), and Company Packet (CP)

• By Session Five, coordinate with another teacher to have a class of students be “shoppers” during Session Twelve

• Invite parents and/or community members to attend the Sales Bazaar during Session Twelve

• Photocopy the following: º Teacher Ledger (29-30) º Certificate of Completion (97) º Teacher Evaluation (98-99)

• Plan to display/project the following teacher resources/handouts for students to see:

Teacher Manual º Entrepreneurial Cycle (12) º BizMart Price List (39) º Company Performance Summary (96)

Student Packet (SP) º Pricing Worksheet (SP11-12) º Finance Worksheet A (SP16), Finance Worksheet B (SP17), Finance Worksheet C (SP18) º Income Statement (SP19) º Balance Sheet (SP20)

Company Packet (CP)

º Venture Capitalist vs. Bank (CP8)

• If you are teaching from an electronic copy of this program, make these additional preparations: º Print and cut out BizBucks ($1BB - 15 sheets, $5BB - 10 sheets)* º Print and cut out shares of stock (10 shares per company)* º Purchase bracelet string* º Print and copy Student Packets (one per student) and Company Packets (one per team)

*A BizWorld supply pack (pre-printed BizBucks, shares of stock - six sets of 10 shares of stock, string, and stu-dent and company packets) can be purchased online at www.bizworld.org.

PREPARING TO TEACH BIZWORLDBIZWORLD PROGRAM OVERVIEW

iv Teacher Manual

PREPPrepare the following materials - one set per team (Note: these items are NOT provided in the BizWorld kit).

The items below should be ready from the start of teaching BizWorld (used throughout the program):

• One large envelope, box, or area in the classroom for each company to store its materials

• One small Ziploc bag (for BizBucks, shares of stock, and bank loan receipts)

• Sticky notes, or paper clips (one per student), to be used as divider tabs in the Student Packet

• Six safety pins (optional)

Design Package (Session Five):

• Six sheets of unlined paper

• One set of markers

• At least one pair of scissors

• One roll of masking tape

Marketing Package (Session Ten):

• One large sheet of poster board or butcher paper

Note: Teaching multiple classes simultaneously? Print additional BizBucks ($1BB - 15 sheets, $5BB - 10 sheets), shares of stock (10 shares per company), Student Packets (one per student), and Company Packets (one per company). Printable versions of all materials are available online at www.bizworld.org.

Community Involvement and Volunteer Engagement!

BizWorld offers many opportunities for bringing volunteers into the classroom to connect with the local community. Not only does this show students the link between business concepts and the real world, it allows parents and community members a chance to interact with your class. The Parent/Guardian Letter (SP1) is a great way to let parents know you are looking for volunteers.

• Invite parents to play the following short-term roles: State Government, Venture Capitalist, Storekeep-er, Banker, or shoppers at the Sales Bazaar.

• Invite volunteers who can attend multiple sessions to be the “Company Advisor”; this role supports teams and students with daily tasks and activities.

• Invite parents/community members to be guest speakers about a topic (e.g., banking, marketing).

• Plan a field trip to a local business, and have your students ask the owners about the business-ownership experience.

• Host a BizWorld Family Night and invite parents/guardians to see a sample of activities and student work.

• Use real money at the Sales Bazaar, and raise funds for your school or a local charitable cause.

• Time the Sales Bazaar with an Open House or Parent Night as a way for students to showcase their work.

PREPARING TO TEACH BIZWORLD

Teacher Manual 1

BUSINESS101LESSON PLAN

PREPGuiding Question:

What is a business?

Objectives• To measure students’ prior knowledge about the business world

• To define and explain the functions of a business

• To explain how a company earns a profit

Pre-Assessment (10 minutes)

• Students complete the online Pre-Assessment

What is BizWorld? (10 minutes)• Read News Flash 1 (6) and discuss

• Explain the purpose of the program

What is a Business? (20 minutes)• Discuss/explain what a business is

• Introduce and explain common business terms

The Profit Equation (10 minutes)• Discuss/explain the profit equation

• Complete Profit Equation Worksheet (SP3)

Homework

• Parent/Guardian Letter (SP1)

THE BASICSSession One: Business Basics

2 Teacher Manual

101MATERIALS AND RESOURCES SKILLS*

BEFORE YOU TEACH IMPORTANT NOTES

VOCABULARY

Terms in bold are the essential vocabulary. If you are short on time or teaching younger students, it is recommended you focus on the terms in bold.

*For program alignment to standards, go to www.bizworld.org.

• When your students complete and submit both the pre- and post-assessments, you will receive a free string refill to teach BizWorld again.

• Review Session One

• Personalize and prepare News Flash1(6)

• Display Profit Equation Worksheet (SP3)

• Confirm computer access for online assessment

• Photocopy a Student Packet (SP) for each student, if needed

Business

Expense

Loss

English Language Arts

• Determine main idea of a text read aloud

• Acquire new vocabulary

• Participate actively in class discussion

• Connect personal knowledge and experiences with new content

You will need:

• News Flash 1 (6)

• Student Packet (SP)

º Profit Equation Worksheet (SP3) [answers vary; no key provided]

Students will need:

• Pre-Assessment (online)

• Student Packet

º Parent/Guardian Letter (SP1)

º Profit Equation Worksheet (SP3)

Session One: Business Basics

Product

Profit

Rent

Revenue

Salary

Service

Teacher Manual 3

101101 Session One: Business Basics

Pre-Assessment (10 minutes) Welcome to BizWorld! Explain to students that today they will begin a pro-gram to learn about entrepreneurship and business.

Before the program begins, students will take a short quiz, the Pre- Assessment, to help understand how much they already know about business.

Have students go to www.bizworld.org to complete the Pre-Assessment.

Remind students that they are not expected to know everything on the Pre- Assessment. Its purpose is to help you and The BizWorld Foundation know where students started with their knowledge of business, so we can measure their success after completing the program. By having students complete this assessment, you are helping The BizWorld Foundation to measure BizWorld’s impact and secure funding to share The BizWorld Foundation programs with more educators.

Upon completion of the program, students will take a Post-Assessment. When both the Pre-Assessment and Post-Assessment answers have been submit-ted online, The BizWorld Foundation will send you free string for your next BizWorld class.

Thank you for taking the time to provide The BizWorld Foundation with this valuable data from your classroom. Your support will help to bring this expe-rience to more students.

What is BizWorld? (10 minutes)Welcome to the BizWorld program! To kick off the unit and give students a sense of purpose, the program begins with News Flash 1 (6). Important: Personalize this document before class!

Sample ScriptDo you know what silicone bracelets are? [Show students example from your BizWorld kit.]

Have you ever seen or owned one? If so, what was it for (cause be-ing promoted)? [answers will vary]

Have you heard this morning’s news about silicone bracelets? [After students answer, read News Flash 1 (6).]

Teaching Tip

For supplemental assessment ques-tions, see the online support tools at www.bizworld.org.

4 Teacher Manual

101Session One: Business Basics

After reading, ask students to explain what they think they will be doing. [cre-ating a business, making bracelets, selling bracelets]

Use their answers to lead into an explanation of the BizWorld program.

• BizWorld is a simulated business activity. Students work in teams and form their own friendship bracelet companies.

• Just like the real business world, each company will create and sell its bracelets (products) to make the most money (revenue) possible.

• In the end, the company with the highest team value, defined as the total value of employee-owned shares of stock, will be recognized. For details, see Session Thirteen.

What is a Business? (20 minutes)A business is a person or group of people who create and sell products and/or services in order to make money.

Ask students for examples of a business. [lemonade stand, dentist office, restaurant, toy store]

Ask them to identify things that can be purchased from a business. [lawn care or car wash (service), clothing or food (product)]

From the largest corporation to the smallest store, all businesses are trying to do the same thing – make money.

Sample Script

Have you ever had a lemonade stand?

How much money did you make?

Did you have to pay for lemons?

Is a lemonade stand a business? [Yes!]

Discuss the ways in which businesses make and spend money.

Businesses can sell:

• A product: something made by humans, machines, or nature. Products are tangible. [lemonade, athletic shoes]

• A service: work that someone does for another person. Services are intangible. [haircut, auto service/tune up]

Teaching TipIt may be easier for students to un-derstand these terms if they are ex-plained in the context of a lemonade stand. For a guided script, use the Lemonade Stand Story-Telling Activ-ity found in the online support tools at www.bizworld.org.

Teacher Manual 5

101Session One: Business Basics

Money a company earns from selling a product or service is called revenue.

An expense is a cost associated with operating a business. Some common expenses are:

• Salary: the money a person is paid for working

• Rent: money regularly paid to use or occupy a space

Profit is the money made by a company, after expenses have been paid. To profit a business must sell a product or service for more than it costs to pro-duce it. If it does NOT do this, the result can be a loss. A loss occurs when total expenses exceed total revenue.

The Profit Equation (10 minutes)Ask students to turn to the Profit Equation Worksheet (SP3) in the Student Packet (SP).

Revenue – Expenses = Profit (or Loss)

Instruct students to complete the Profit Equation Worksheet (SP3) by listing sources of revenue [gas, food, car washes] and types of expenses [salaries, rent, advertising] a business might have.

Emphasize: To maximize your profit, you must keep revenue high and expenses low.

Homework: Parent/Guardian LetterThe Parent/Guardian Letter (SP1) is designed to encourage parents/guard-ians to engage their children in conversations about business and entrepre-neurship throughout the BizWorld experience. It is also meant to encourage parents’ volunteer involvement.

Instruct students to turn to the Parent/Guardian Letter (SP1). Each student will earn BizBucks (BB) for returning the bottom portion of the letter. If the letter is signed by a parent/guardian, the student will receive $1BB. If the bottom portion is signed and any or all of the tasks are checked, the student will re-ceive $2BB. All letters should be returned by the beginning of Session Four.

For other homework suggestions, see the online support tools at www.bizworld.org.

profit equation worksheet(sp3)

3

Revenue - Expenses = Profit (or Loss)

Profit Equation Worksheet

(High) (Low)

What are some ways a business can earn revenue?

What are some expenses a business might have?

Teaching TipHave students repeat this key concept with physical actions for reinforce-ment (e.g., Revenue High - Hands Up, Expenses Low - Touch Toes).

Teaching TipInvite parents and community mem-bers to volunteer in your classroom during BizWorld. For a list of volun-teer opportunities, see page iv.

6 Teacher Manual

For Immediate Release: Local business people are excited about bracelets!Silicone bracelets are hot! Just like Heelys and Sillybandz, everybody wants these brace-

lets. Even Hollywood celebrities are wearing them! These bracelets can support school/

sports teams, movies, books, or important causes like saving the Earth.

Businesspeople put lots of money into the new companies that made these bracelets. This

helped the companies get started successfully, and the businesspeople made millions of

dollars. Now, they want to put their money into “the next big thing” - friendship bracelets!

Lots of friendship bracelet companies are starting up right now and selling bracelets as

fast as they can make them.

One businessman, Mr. Draper, said, “I can tell people will love friendship bracelets – my

kids and their friends wore them at the basketball game last weekend, and now they’re

buying more for a soccer game!” Businessmen, like Mr. Draper, are excited to help these

small companies get started.

A friendship bracelet sale is scheduled to take place on______________at

___________________________. Because of their creative ideas and track record of success,

students in _______________________’s class have been chosen as the first _________ graders in

the __________________________ area to sell their products at this exciting event! Stay tuned

for updates on these successful new companies.

NEWS FLASH 1

NEWSFLASH!

(date)

(place)

(teacher name) (grade)

(city/state)

Teacher Manual 7

LESSON PLAN

Guiding Question: Who is the right person for the job?

Objectives• To define and explain the entrepreneurial cycle

• To identify responsibilities of different positions (jobs)

• To match students’ personal strengths with a job in the company

BizWorld Memo (5 minutes)• Memo: Business Basics (SP4)

The Entrepreneurial Cycle (5 minutes)• Discuss what it means to be an entrepreneur

• Display the illustration of the Entrepreneurial Cycle (12) and discuss

Jobs in the Company (15 minutes)• Explain/discuss jobs in the company

• Use Online Job Board (SP5) to discuss each job

Right Person for the Job (10 minutes)• Complete The Right Person for the Job (SP6) as a class

Job Application (15 minutes)• Each student completes a Job Application (SP7-8)

Homework

• For suggestions, see the online support tools at www.bizworld.org

BUSINESS101THE BASICSSession Two: Applying for Jobs

8 Teacher Manual

MATERIALS AND RESOURCES SKILLS*


VOCABULARY



101

• Give $1BB or $2BB to each student who returns Parent/Guardian Letter (SP1)

• Use a class roster to track returned letters

• Review Session Two

• Display Entrepreneurial Cycle (12), Online Job Board (SP5), and The Right Person for the Job (SP6)

English Language Arts:


• Participate actively in class discussion

• State an opinion and support it with facts/ examples

You will need:

• Memo: Business Basics Key (11)

• Entrepreneurial Cycle (12)

• Online Job Board Key (13)

Students will need:


º Memo: Business Basics (SP4)

º Online Job Board (SP5)

º The Right Person for the Job (SP6)

º Job Application (SP7-8)

Session Two: Applying for Jobs

Chief Executive Officer (CEO)

Entrepreneur

Finance

Job application

Vice President (VP) Design

VP Finance

VP Manufacturing

VP Marketing

VP Sales

Teacher Manual 9

101101BizWorld Memo (5 minutes)Instruct students to complete Memo: Business Basics (SP4) as review from Session One. Review answers as a class.

The Entrepreneurial Cycle (5 minutes)An entrepreneur is a person who takes on the risk of beginning and oper-ating a new business. Starting a new business is risky because it takes a lot of time and money, and there is no guarantee the business will succeed. The first thing entrepreneurs do is think of an idea; then, they follow the four stages of the entrepreneurial cycle to run their business.

Display the Entrepreneurial Cycle (12) and explain what the four major stages of running a company are:

• Design (Draw it)

• Manufacturing (Make it)

• Marketing (Tell everyone about it)

• Sales (Sell it)

Finance, the management of money and other items of value (i.e., expenses, cash, revenue, supplies), is at the center of the cycle because financial deci-sions are a part of each stage. In each of the four stages, companies must record their revenue and expenses to make sure they are on track to make a profit.

Ask students to think back to the lemonade stand example from Session One. What kind of financial decisions are made in the lemonade stand business? [how much to spend on supplies, paying salaries, deciding on prices]

In BizWorld, each team will go through the cycle once. However, real com-panies often move through this cycle many times as they continue to perfect and create new products.

Jobs in the Company (15 minutes)Each company will consist of six employees, each with a specific job title. Discuss the different positions and their responsibilities using the Online Job Board (SP5).

Chief Executive Officer (CEO): Focused on leading the team and managing the smooth operation of the company and its employees.

VP Design: Focused on leading the team in creating an attractive design and a quality product that will appeal to customers.

VP Finance: Focused on leading the team in making sure all money is accounted for and the company is making a profit.

Session Two: Applying for Jobs

memo: business basics(sp4)

4

Answer the following questions:

1. What is a business?

2. List five different types of businesses.

3. How can a company figure out if it has made a profit?

Memo: Business Basics

Teaching TipEnlarge the Entrepreneurial Cycle (12) to poster size, so students can track their movement through the four stages.

10 Teacher Manual

101Session Two: Applying for Jobs

VP Manufacturing: Focused on leading the team in making the product as easily and inexpensively as possible.

VP Marketing: Focused on leading the team in promoting the com-pany, product, or service.

VP Sales: Focused on leading the team in providing excellent cus-tomer service and selling lots of products.

As you explain each position and its responsibilities, have students fill in the blanks on the Online Job Board (SP5). Answers can be found on the Online Job Board Key (13).

Stress to students that although each person will hold a specific job, everyone is responsible for providing support to all aspects of the company.

Right Person for the Job (10 minutes)Explain to students that they will be filling out a job application, a form filled out by someone who wants a job, summarizing their skills and experience. When applying for a job, it is important to think about what skills and talents they have and how that relates to a position.

In groups, complete The Right Person for the Job (SP6). Discuss as a class to help students learn to fill out and evaluate a job application.

Job Application (15 minutes)Prior to filling out the Job Application (SP7-8), discuss the following questions:

• Which job(s) are you considering?

• Why do you think the job is a good fit for you?

• What skills are necessary for this job?

Instruct students to complete the Job Application (SP7-8). Make sure students fill in the “position applying for” line and give two alternate choices.

Use the information students provided on the application and knowledge of your classroom dynamics to determine student groups in preparation for Session Three. Job positions can be assigned by the teacher or students (once in groups).

HomeworkFor suggestions, see the online support tools at www.bizworld.org.

job application(sp7-8)

7

Fill out the application. Answer the questions below neatly and to the best of your ability.

Date Position Applying For

Last Name First Name Middle Initial Second Choice

School Name Highest Grade Completed Third Choice

The position begins immediately. Do you plan to be absent during any of the days we are working on BizWorld?

Yes No If yes, what dates?______________________________________

Why are you interested in this position?

What skills and/or personality traits do you have that will help you succeed in this job?

List any previous work and/or volunteer experience that will help you in this position. We are especially interested in applicants with experience in the friendship bracelet business.

Job Application

online job board(sp5)

5

Read the responsibilities and fill in the job title that matches each position:

Chief Executive Officer (CEO) VP Manufacturing VP Finance

VP Design VP Marketing VP Sales

Positions available in the friendship bracelet industry

Job Title___________________________________________________________________• Oversees the smooth operation of the business• Wants the company to be profitable and experience growth over time• Responsible for making sure everyone is on task

Job Title___________________________________________________________________• Oversees all financial records• Wants to keep revenue high and expenses low• Responsible for the financial health of the company

Job Title___________________________________________________________________• Oversees the development of the marketing campaign• Wants to spend money to improve the company’s image and reputation• Responsible for getting the most value for the product

Job Title___________________________________________________________________• Oversees bracelet design and helps with quality control during manufacturing• Wants to ensure the product looks good and is of high quality• Responsible for the design of the product

Job Title___________________________________________________________________• Oversees the development of the sales pitch• Wants to sell as much of the product as possible• Responsible for making customers happy so they will buy the product

Job Title___________________________________________________________________• Oversees bracelet production• Wants the product to be made efficiently• Responsible for making sure the product can be made easily and inexpensively

Online Job Board

Teaching TipTo help create groups and assign students to fitting roles, use the group-ing Tips handout on www.bizworld.org. For teams of five students, combine the roles of VP Sales and VP Marketing. For teams of seven, have two VPs Marketing.

Teacher Manual 11

4

Answer the following questions:

1. What is a business?

2. List five different types of businesses.

3. How can a company figure out if it has made a profit?

Memo: Business Basics

101 MEMO: BUSINESS BASICS KEY

[a person or group of people who create and sell products and/or services in order to make money; answers may vary]

[hardware store, restaurant, doctor’s office, farming,Internet search engine; answers may vary]

[use The Profit Equation: Revenue-Expenses=Profit (Loss)]

12 Teacher Manual

Finance

A B

CD

Design

Sales Marketing

Manufacturing

ENTREPRENEURIAL CYCLE

Teacher Manual 13

5

Read the responsibilities and fill in the job title that matches each position:

Chief Executive Officer (CEO) VP Manufacturing VP Finance

VP Design VP Marketing VP Sales

Positions available in the friendship bracelet industry

Job Title___________________________________________________________________• Oversees the smooth operation of the business• Wants the company to be profitable and experience growth over time• Responsible for making sure everyone is on task

Job Title___________________________________________________________________• Oversees all financial records• Wants to keep revenue high and expenses low• Responsible for the financial health of the company

Job Title___________________________________________________________________• Oversees the development of the marketing campaign• Wants to spend money to improve the company’s image and reputation• Responsible for getting the most value for the product

Job Title___________________________________________________________________• Oversees bracelet design and helps with quality control during manufacturing• Wants to ensure the product looks good and is of high quality• Responsible for the design of the product

Job Title___________________________________________________________________• Oversees the development of the sales pitch• Wants to sell as much of the product as possible• Responsible for making customers happy so they will buy the product

Job Title___________________________________________________________________• Oversees bracelet production• Wants the product to be made efficiently• Responsible for making sure the product can be made easily and inexpensively

Online Job Board

ONLINE JOB BOARD KEY

Chief Executive Officer (CEO)

VP Finance

VP Marketing

VP Design

VP Sales

VP Manufacturing

14 Teacher Manual

LESSON PLAN

BUSINESS101Guiding Question:

How can we be a successful company?

Objectives• To form student teams

• To identify characteristics of successful teams

• To make team decisions, such as creating a company name

Assigning Jobs (10 minutes)• Students receive job assignments based on their applications

Teamwork (10 minutes)• Explain/discuss teamwork

• Complete one of the team building activities

Business Contract (5 minutes)• Explain the Business Contract (CP3) and employee responsibilities

Successful Companies (10 minutes)• Explain what makes a company successful

• Discuss how your company can help your community

Company Name (15 minutes)• Teams brainstorm and discuss ideas for their company names

• Complete What’s in a Name? (CP4) as a team

Homework


THE BASICSSession Three: Building the Team

Teacher Manual 15




BUSINESS101

• Give $1BB or $2BB to each student who returns Parent/Guardian Letter (SP1)

• Review Session Three

• Sort students into groups

• Arrange student desks and/or classroom tables to accommodate team assignments

• Write job phrases on the board

• Photocopy Company Packets (CP) (one per team), if needed



• Participate actively in class and team discussion

• Collaborate and communicate to make team decisions

You will need:

• Team Building Activities (19)

• Scissors and tape or safety pins to attach name tags

Students will need:

• Company Packet (CP)

º Job Cards (CP1)

º Business Contract (CP3)

º What’s in a Name? (CP4)

Ethics

Session Three: Building the Team

VOCABULARY

16 Teacher Manual

101Assigning Jobs (10 minutes)Prior to class, write the following job phrases on the board:

• “Work together!”

• “Make it look good!”

• “Low cost, high price!”

• “Make it faster!”

• “Make them want it!”

• “Sell! Sell! Sell!”

If you have not already done so, separate students into their teams (compa-nies). Distribute a Company Packet (CP) to each team. Distribute a pair of scissors and roll of tape (or six safety pins) to each team.

Announce job assignments that you have made, or instruct students to discuss who will take on each job in the company. Then, have the students cut out the Job Cards (CP1), neatly print their team name on the top line, and tape or pin the card to their shirt.

Now that each student has a job, explain to students that you have written some phrases on the board that might be said in a real business meeting.

Ask all VPs Finance to stand up and have them guess which phrase they think a real VP Finance would say. [“Low cost, high price!”]

Have VPs Finance remain standing. Ask all VPs Sales to stand up and ask them which phrase they think a real VP Sales would say. [“Sell! Sell! Sell!”]

Repeat this for each role, ending with CEO. [VP Design: “Make it look good!”; VP Manufacturing: “Make it faster!”; VP Marketing: “Make them want it!”; CEO: “Work together!”]

Now, while all students are standing, have them shout their phrase three times at the same time.

Ask students what happened when everyone said their phrase at the same time. [too much noise, can’t hear anyone clearly]

This is exactly what can happen during a team meeting or discussion. If everyone is too focused on their individual part of the company, no one will be heard. Even though every person on the team has a specific job, they need to be aware of the concerns of each job/department. For a company

Session Three: Building the Team

job cards(cp1)

1

(print team name)

Chief ExecutiveOfficer

Leads the team and manages thesmooth operation of the company

and its employees.

(print team name)

Vice PresidentFinance

Leads the team in making sure allmoney is accounted for and the

company is making a profit.

(print team name)

Vice PresidentMarketing

Leads the team in promoting thecompany, product, or service.

(print team name)

Vice PresidentDesign

Leads the team in creating an attractive design and quality product

that will appeal to customers.

(print team name)

Vice PresidentSales

Leads the team in providing excellent customer service and selling lots

of products.

(print team name)

Vice PresidentManufacturingLeads the team in making the

product as easily and inexpensively as possible.

Teacher Manual 17

101Session Three: Building the Team

to succeed, all parts (whether it be design, finance, or marketing) must work together.

Teamwork (10 minutes)To build a successful company, there must be effective teamwork, but what is that? To begin your teamwork discussion and provide a visual aid, draw a three-column chart on the board and label the columns: “Looks like,” “Sounds like,” and “Feels like.”

Ask students what successful teamwork…

• Looks like [What do they see? Students taking turns, listening attentively.]

• Sounds like [What do they hear? “Thanks for sharing your idea.”; “Can I help?”]

• Feels like [How do students feel? They feel safe sharing ideas, happy, welcomed, comfortable sharing ideas.]

Record your students’ responses on the chart.

If time allows, have students complete one of the Team Building Activities (19). All activities highlight the importance of working cooperatively and communicating effectively.

Business Contract (5 minutes)The Business Contract (CP3) is included in the Company Packet (CP). The contract highlights a code of conduct and recognition of student responsibili-ties as employees.

Have each student read, sign, and date the contract.

The Company Packet (CP) should be retained by the CEO of each company.

Successful Companies (10 minutes)Encourage companies to think about their business as more than a way to make money. Today, many successful companies are concerned with more than just earning a profit. Many companies measure their success based on both finances and positive social impact.

Discuss how companies give back to their communities. [Companies provide jobs, contribute to the tax base, and provide necessary or beneficial products and services.]

Discuss the characteristics of a successful company.

business contract(cp3)

3

As an employee of this company, I agree to perform all of my job responsibilities to the best of my ability. My actions will be conducted in a manner appropriate to business and within the expectations of this classroom.

As part of this company, I agree to:

• Cooperate and listen to ideas and suggestions of my fellow employees

• Participate as an active member of the company in all stages of the entrepreneurial cycle

• Keep a daily record of all company financial transactions

• Work together as a team to maximize the efficiency and profitability of this company

Signed this day by myself and the witnesses below:

Business Contract

Chief Executive Officer (CEO) Date

Vice President Finance Date

Vice President Design Date

Vice President Marketing Date

Vice President Sales Date

Vice President Manufacturing Date

Teaching TipRead the Business Contract (CP3) aloud as a pledge to emphasize its importance. Have each student raise their right hand and repeat after you. Read one or two sentences at a time so students can easily remember the lines.

18 Teacher Manual

101Session Three: Building the Team

Successful companies:

• Are profitable (or they will go out of business)

• Fulfill a need in society with their products and/or services

• Make or provide quality products and/or services

• Provide a healthy work environment

• Treat their employees well

• Benefit their community

• May participate in community outreach efforts like supporting local schools, sponsoring community parks, or city cleanup efforts

• Demonstrate good business ethics. Ethics are the rules of society that help people to tell the difference between acceptable and unacceptable behavior

Discuss some examples of ethical business practices. [pay a fair wage (sala-ry), protect the privacy of customers]

Company Name (15 minutes)Explain/discuss established company names. [Google, Old Navy, Coca Cola, Burger King]

Ask students what images are associated with these names. What do the names make them think of?

The students’ first project, as a team, will be to create a name for their friend-ship bracelet companies.

To help focus the group discussion, suggest that students consider choosing a name that:

• Is memorable and/or unique

• Reflects their company values

• Reflects their product design

Tell/remind students that each company will also create a marketing campaign. Ask them to start thinking of logos or slogans to represent their company.

Instruct teams to use What’s in a Name? (CP4), included in the Company Packet (CP), to guide their discussion of company name ideas.


what’s in a name(cp4)

4

What’s in a Name?

Directions: Complete the following in reference to your company name.

1. Identify three examples of company names that were suggested by you or your team members:

a.

b.

c.

2. Which of the names identified above did you and your team members decide on for a company name?

Company name:

3. Why did you and/or your team members feel this was the best name choice?

4. Identify one of the alternative names listed above (question #1) and explain why you and/or your team members decided it was NOT the best name choice.

Teaching TipHelp students understand what it means to be “ethical” by sharing the phrase: “Treat others as you would like to be treated.”

Successful companies are profitable and treat their employees, customers, and community as they would like to be treated.

Teacher Manual 19

The following activities highlight the importance of working cooperatively and communicating effectively. After completing the activity, have students discuss the strategies they need to be successful.

Line Up (5-10 minutes)Group students into companies. Explain that you will read a statement, and each group will need to put their members in order. Sample orders include:

• Height: tallest to shortest• Age/birthday: oldest to youngest• First and/or last names: alphabetical• Job positions: alphabetical

Tip: To make this activity more challenging, add variation by doing the following:• Allow only one person on the team to talk• No talking; find an alternate way to communicate

Uncommon Commonalities* (10-15 minutes)An uncommon commonality is something the team members of a group have in common that makes them unlike other teams.

Separate students into their companies. Have each company list as many uncommon commonalities as they can. For example, all students in the company may like pizza. However, they need to be more specific because, chances are, almost every student in the class likes pizza! Maybe all students in one company love mushroom and sausage pizza.

Encourage students to find uncommon commonalities in different categories like favorites (hobbies, ani-mals, sports), places (they have/have not been), and family (number of pets, number of siblings).

Team Drawing (20-30 minutes)Give each company a large piece of paper with a shape or squiggle written on it in black marker. Each company’s shape/squiggle should be the same.

Give each student in the group a different colored marker (i.e., one red, one yellow, one green, one blue, one purple). Explain to the class that each team will use the shape/squiggle on their paper to create a picture. Each student can only draw with their one color. Students need to work as a team to create their picture. Allow students to draw/discuss for about 10-15 minutes.

Once students are finished, discuss their pictures with them. Ask students how they decided what to draw. Who emerged as a leader? Was there one color that dominated the picture? Was there a color that did not even make it onto the picture?

Ask students how they can use their drawing to guide their group. Hang up the pictures in the classroom to remind students of the value of each member’s contribution.

* Uncommon Commonalities is a Kagan team building activity.

TEAM BUILDING ACTIVITIES

20 Teacher Manual

LESSON PLAN

BUSINESS101Guiding Question:

How do people finance a new company?

Objectives• To identify one way new companies can raise money to pay for design expenses

• To incorporate new friendship bracelet companies

• To track all deposits and withdrawals so each team knows their bank account balance

BizWorld Memo (5 minutes)• Memo: The Entrepreneurial Cycle (SP9)

Introduction to Tracking Finances (10 minutes)• Explain/discuss the importance of tracking finances• Demonstrate use of the Company Ledger (SP14-15) by recording “founding” money

Introduction to Raising Capital (10 minutes)• Explain/discuss ways a company can raise capital

• Explain what venture capitalists (VCs) are and why they invest

Stock and Incorporation (10 minutes)• Explain stock and incorporation• Record incorporation fees on Company Ledger (SP14-15)

What is a pitch? (10 minutes)• Explain what it means to pitch to the VC and discuss strategies

Reconciling Finances (5 minutes)• VPs Finance reconcile each employee’s Company Ledger (SP14-15)

Homework


THE BASICSSession Four: Financing Your Company

Teacher Manual 21



VOCABULARY



BUSINESS101

• Give $1BB per team as “founding” money

• Give $1BB/$2BB to each student who returns Parent/Guardian Letter (SP1)

• Collect $1BB per team to incorporate

• Companies must raise $15-20BB for design expenses

• Review Session Four

• Sort shares of stock into sets of 10

• Determine who (you or a volunteer) will play the role of the State Government; review respon-sibilities using Teacher/Volunteer Roles (27)





Math

• Add and subtract whole numbers fluently

• Express parts of a whole as a percentage

You will need:

• Memo: The Entrepreneurial Cycle Key (26)

• Teacher/Volunteer Roles (27)

• Sample Company Ledger (28)

• Teacher Ledger (29-30)

• Stock Pie Chart (31)

• One Ziploc bag/envelope per company

• Shares of stock (10 per company)

• Sticky notes/paper clips

Students will need:


º Memo: The Entrepreneurial Cycle (SP9)

º Company Ledger (SP14-15)

Session Four: Financing Your Company

Capital

DepositFounder

Incorporate

Negotiate

Pitch

Reconcile

Stock

Venture Capitalist (VC)

Withdrawal

22 Teacher Manual

101BizWorld Memo (5 minutes)Instruct students to complete Memo: The Entrepreneurial Cycle (SP9). This activity reviews the stages of the entrepreneurial cycle.

Review students’ answers with the class and use the Entrepreneurial Cycle (12) diagram to aid discussion.

Introduction to Tracking Finances (10 minutes)Explain to students that during each stage of the entrepreneurial cycle, they will need to record their company’s finances (money and other resources).

Ask students why they think it is important to keep track of money. [to know how much you have left, to make sure you earn a profit]

All money the company has is capital. Capital is money and/or other re-sources used to make more money.

A person who starts a business, a founder, usually contributes their own money to the business. Each BizWorld company will receive $1BB in found-ing money. Give each VP Finance the founding money.

Ask students how people keep track of their money. [bank statements, count-ing the cash, they don’t]

During BizWorld, each student will keep track of their company’s finances using the Company Ledger (SP14-15). Students should record all deposits and withdrawals.

• A deposit is money put into an account.

• A withdrawal is money taken out of an account.

Demonstrate and guide students in adding the deposits to the Company Ledger (SP14-15) by using the Sample Company Ledger (28). Have VP Finance for each company check that all deposits are correctly recorded on their teammates’ ledgers. Then, VPs Finance will count their company’s BizBucks (BB). The amount of BBs in the company’s bank account should match the balance on the Company Ledger.

The process above is meant to reconcile, or check for accuracy, each com-pany’s finances. VPs Finance should place a check mark in the “Reconciled” column on each team member’s ledger when this is confirmed.

Session Four: Financing Your Company

IMPORTANT NOTEIf all teams do not have a minimum of $5BB for returning signed Parent/Guardian Letters, give teams $5BB in founding money. Each company will need $1BB to incorporate and $4BB for the Design Package.

Teaching TipGive each VP Finance one small Zip-loc bag or envelope to act as their company’s bank account for their BizBucks and shares of stock.

Teaching TipHave students use a sticky note, or paper clip, to create a divider tab in their Student Packet (SP) for easy access to the Company Ledger (SP14-15).

memo : the entrepreneurial cycle(sp9)

9

Congratulations! You and a group of your classmates are going to start and run your own business. The following list includes steps that every BizWorld company must complete in order to be successful. Number the steps, 1 to 4, in the order you think they should happen:

_______ Sell your product (sell)

_______ Manufacture, or make, a product efficiently (make)

_______ Market and advertise your product (tell)

_______ Design a product (draw)

1. Why is finance in the middle of the Entrepreneurial Cycle?

2. Give some examples of financial decisions a company might have to make.

Memo: The Entrepreneurial Cycle

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Teacher Manual 23

101Session Four: Financing Your Company

Introduction to Raising Capital (10 minutes)

Sample Script

What are some of the costs (expenses) you think you will have when starting your friendship bracelet company? [salaries, rent, string]

Do you think you have enough money right now to pay for these ex-penses? [no]

Where can companies get money to pay for these costs (expenses)? [borrow money from the bank, family and/or friends, sell stock]

During Session Five, each company will need to raise capital in order to cover the costs of starting its business. One way an entrepreneur can raise capital is to receive money from a venture capitalist (VC). Tell students that a VC will be coming to the classroom to invest in new friendship bracelet companies.

A venture capitalist (VC) is a person who invests money in new and inno-vative businesses.

Sample Script

Do you think a VC will just GIVE you money? [No! VCs want to buy a part of your company.]

How can you sell just a part of your company? [see below]

Stock and Incorporation (10 minutes)In order to sell a part of your company, you need to have shares of stock. Stocks are pieces of ownership in a company. When someone buys stock, they own a “piece” of the company and “share” the profits the company makes. That is why stocks are referred to as “shares of stock.”

Ask students where they think someone can buy stock. [in a store, at the stock market, from a bank] Explain to students that stock is provided by a state gov-ernment once a company incorporates. To incorporate means to form a company that is officially recognized by the state government as an independent organization. Incorporation protects the owner’s personal money and possessions because a company’s assets (items of value) and debt are considered separate from the individual. If the company goes bankrupt or gets into financial trouble, the owner’s personal property will be protected.

Each company will pay $1BB to incorporate and receive 10 shares of stock. It will then have the opportunity to sell share(s) of stock to the VC to finance its design expenses ($15-20BB).

company ledger(sp14-15)

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24 Teacher Manual


Instruct the CEO of each company to visit the State Government (you or a vol-unteer) to incorporate and receive shares of stock. Allow the CEOs to choose shares of stock to represent their companies.

Record each company’s name on the Teacher Ledger (29-30).

Guide students in recording the incorporation fee as a withdrawal on their Company Ledger (SP14-15).

Use the Stock Pie Chart (31) to help students visualize what their shares of stock represent. The circle (or pie) represents a company, and each share of stock represents a piece of ownership in the company. The more ownership you have in a company, the greater your decision-making power. Right now, each company owns 100% (or all) of its company.

Sample Script

What percentage of your company would you own if you sold two shares to the VC? [80%] What if you sold four shares? [60%]

How many shares of stock (or how much ownership) is your company willing to sell? [answers will vary; discuss the advantages/disadvantag-es of their choices]

You may want to sell stock, but how can you convince a VC to buy it? [show product, give a presentation]

What is a Pitch? (10 minutes)Investing in, or putting money into, a new business is risky. VCs only want to in-vest in companies that will be profitable. Therefore, each team must convince the VC that buying shares of their company’s stock will pay off in the future (i.e., make them money).

The VC should be thought of as a “partner in the business” because they are interested in the company’s success for their own benefit.

How does the VC benefit from investing in companies?

1. The company goes public. This means that its shares of stock are avail-able on the open market and the value of each share is determined by public demand. When more people want to purchase shares, the value of each share rises. In this case, the VC hopes to sell their shares for more than the purchase price.

2. The company is purchased by another company. In this case, the VC will be paid based upon their percentage of ownership in the company.

stock pie chart(31)

Teacher Manual 31

STOCK PIE CHART

A share of stock represents partial ownership in a company and can be thought of as “owning a piece of the pie.”

Example: Whole Pie = $100 BizBucks One Share = $10 BizBucks

teacher ledger(29-30)

Teacher Manual 29

TEACHER LEDGER

Use this ledger to track your students’ financial transactions and help all students maintain an accurate Company Ledger (SP14-15).

Business 101(Sessions One – Four) Deposits Withdrawals

Company Name Founder’s Money ($1 or $5BB)

Parent/Guardian Letters* Other Incorporation

Fee Other

1. $1BB

2. $1BB

3. $1BB

4. $1BB

5. $1BB

6. $1BB

*This column should record the total amount of money a company earned for returned Parent/Guardian Letters.

Part A: Design(Sessions Five – Six) Other Deposits Withdrawals

Company NameShares

of Stock Sold

From VC Other Design Package String

Salaries ($1BB per employee)

Rent Other

1. $4BB $1BB

2. $4BB $1BB

3. $4BB $1BB

4. $4BB $1BB

5. $4BB $1BB

6. $4BB $1BB

Part B: Manufacturing(Sessions Seven – Nine) Other Deposits Withdrawals

Company NameShares

of Stock Sold

From VC From Bank* Other String Salaries Rent Loan

Interest Other

1. $1BB

2. $1BB

3. $1BB

4. $1BB

5. $1BB

6. $1BB*If students take out a bank loan in Part B, they will need to pay 10% interest on the loan three times, in Parts B, C, and D.

Teaching TipFind an article or video clip about a company that recently “went pub-lic.” Share this initial public offering (IPO) or stock market launch story with your class. Focus especially on the effect the IPO had on its original investors/VCs.

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Teacher Manual 25


Each group of students will have the opportunity to convince the VC that their company is worth investing in during their pitch. A pitch is a presentation made to convince someone (a VC) to invest money in a company.

The VC will determine the price per share of stock based on the quality of the pitch. A better pitch will result in a higher price.

Companies are encouraged to negotiate offers with the VC. To negotiate means to bargain and come to an agreement with another person. Each com-pany will need a total of $15-20BB for design expenses.

Discuss with students how to make a successful pitch.

Sample Script

What qualities do you think a VC might look for in a pitch? [confidence, eye contact, product knowledge]

What do you think a VC would want to know before investing in a new company? [that products will sell at a good price, team works well together]

How many shares of stock (or what percentage of a company) would you be willing to sell? Explain your reasoning. [Answers will vary; make sure students understand that each company currently owns all 10 shares (100%).]

Reconciling Finances (5 minutes)Leave five minutes at the end of each session for students to update their Com-pany Ledgers (SP14-15). Reconciling of finances will be led by VPs Finance. Their ledgers will become the master copy, but all employees will keep their own copy to encourage accuracy.

If you are combining sessions, reconcile at the end of each day and before filling out finance worksheets!

Make sure each team records all transactions from this session on its Company Ledger (SP14-15):

• Deposit of founder’s money ($1BB)

• Deposit from returned Parent/Guardian Letters (SP1)

• Withdrawal of incorporation fee ($1BB)



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26 Teacher Manual

9

Congratulations! You and a group of your classmates are going to start and run your own business. The following list includes steps that every BizWorld company must complete in order to be successful. Number the steps, 1 to 4, in the order you think they should happen:

_______ Sell your product (sell)

_______ Manufacture, or make, a product efficiently (make)

_______ Market and advertise your product (tell)

_______ Design a product (draw)

1. Why is finance in the middle of the Entrepreneurial Cycle?

2. Give some examples of financial decisions a company might have to make.

Memo: The Entrepreneurial Cycle

MEMO: THE ENTREPRENEURIAL CYCLE KEY

4

2

3

1

[because it is important to track finances in each stage and make sure the company is on track to make a profit; answers may vary]

[how much it spends on supplies, where to seek funding, how much to charge for a prod-uct; answers may vary]

Teacher Manual 27

The following roles are to be played by you (or a volunteer) during the BizWorld program. Record the following transactions on the Teacher Ledger (29-30).

Business 101: The Basics (Sessions One – Four)State GovernmentEach company will visit the State Government to incorporate. Companies receive 10 shares of stock in exchange for $1 BizBuck (BB). Record each company’s name on the Teacher Ledger (29-30).

Part A: Design (Sessions Five – Six)Venture Capitalist (VC)Each company will visit the VC to sell shares of its company stock in order to raise cash. You are authorized to pay $10-$15BB per share as negotiated with each company (refer to the Venture Capitalist Pitch Rubric (37) to assist in evaluating each company’s pitch).

StorekeeperEach company will visit BizMart to purchase a Design Package ($4BB) and string in order to make prototypes of its product(s). String may be purchased at the retail price only ($2BB per bundle).

Patent Official (optional)Each company may have the opportunity to submit a Design Patent Application (available online at www.bizworld.org). The cost of a patent application is $5BB.

Part B: Manufacturing (Sessions Seven – Nine)BankerSome companies may choose to visit the bank to take out a loan. Loans must be granted in $10BB increments at an interest rate of 10% ($1BB for every $10BB borrowed).

Venture Capitalist (VC)Each company has the option to revisit the VC; however, stock prices have fallen and you may only pay $8-$12BB per share. Companies should be encouraged to carefully weigh their options before selling more shares of stock.

StorekeeperEach company will visit BizMart to purchase string for manufacturing its product. String may be purchased at the wholesale price ($4BB for a set of 8 bundles) or retail price ($2BB per bundle).

Patent Official (optional)Each company may have the opportunity to submit a Design Patent Application (available online at www.bizworld.org). The cost of a patent application is $5BB.

Part C: Marketing (Sessions Ten – Eleven)Venture Capitalist (VC)Some companies will visit the VC to sell additional shares of stock for the purpose of raising more money. You are authorized to pay $15-20BB per share as negotiated with each company (refer to the Venture Capitalist Pitch Rubric (37) to assist in evaluating each company’s pitch).

BankerEach company has the option to visit the bank to take out an additional loan. Loans must be granted in $10BB increments at an interest rate of 10% ($1BB for every $10BB borrowed).

StorekeeperEach company will visit BizMart to purchase a Marketing Package ($10BB).

TEACHER/VOLUNTEER ROLES

28 Teacher Manual

SA

MP

LE C

OM

PA

NY

LED

GER

14

Dat

ePa

rt(B

usin

ess

101,

A

, B, C

, D)

Des

crip

tion

($) D

epos

it(+

)($

) With

draw

al(-

)Ba

lanc

eEm

ploy

ee

Init

ials

*Rec

onci

led

(che

ck m

ark)

Com

pany

Led

ger

* VP

Fin

ance

for y

our c

ompa

ny s

houl

d pl

ace

a ch

eck

mar

k in

this

col

umn

once

the

tran

sact

ion

has

been

reco

rded

and

is c

heck

ed fo

r acc

urac

y.

Busine

ss 101

Foun

der’s Mon

ey$1BB

**

$1BB

JD

3Bu

sine

ss 101

Parent

/Gua

rdian

Lett

ers

$5BB

$6BB

JD

3Bu

sine

ss 101

Incorp

orat

ion

$1BB

$5BB

JD

3A

Vent

ure

Capita

l$2

0BB

$25BB

JD

3A

Design

Package

$4BB

$21B

BJD

3A

String

(pr

otot

ype)

$4BB

$17B

BJD

3A

Ren

t$1BB

$16BB

JD

3A

Salaries

$6BB

$10BB

JD

3B

Bank

Loa

n$10BB

$20BB

JD

3B

String

(man

ufactu

re)

$4BB

$16BB

JD

3B

Ren

t$1BB

$15BB

JD

3**

Num

bers

in b

old

will

be

the

sam

e fo

r all

com

pani

es; o

ther

num

ber w

ill v

ary

base

d on

stu

dent

s’ de

cisi

ons

in th

e cl

assr

oom

.

NO

TE: T

his

is a

par

tial s

ampl

e of

the

Com

pany

Led

ger.

It in

clud

es B

usin

ess

101,

Par

t A: D

esig

n, a

nd a

por

tion

of P

art B

: Man

ufac

turin

g. T

here

will

be

addi

tiona

l de

posi

ts a

nd w

ithdr

awal

s in

the

rem

aind

er o

f Par

t B: M

anuf

actu

ring,

Par

t C: M

arke

ting,

and

Par

t D: S

ales

that

are

not

sho

wn

on th

is s

ampl

e.

Teacher Manual 29

TEACHER LEDGER

Use this ledger to track your students’ financial transactions and help all students maintain an accurate Company Ledger (SP14-15).

Business 101(Sessions One – Four) Deposits Withdrawals

Company Name Founder’s Money ($1 or $5BB)

Parent/Guardian Letters* Other Incorporation

Fee Other

1. $1BB

2. $1BB

3. $1BB

4. $1BB

5. $1BB

6. $1BB

*This column should record the total amount of money a company earned for returned Parent/Guardian Letters.

Part A: Design(Sessions Five – Six) Other Deposits Withdrawals

Company NameShares

of Stock Sold

From VC Other Design Package String

Salaries ($1BB per employee)

Rent Other

1. $4BB $1BB

2. $4BB $1BB

3. $4BB $1BB

4. $4BB $1BB

5. $4BB $1BB

6. $4BB $1BB

Part B: Manufacturing(Sessions Seven – Nine) Other Deposits Withdrawals

Company NameShares

of Stock Sold

From VC From Bank* Other String Salaries Rent Loan

Interest Other

1. $1BB

2. $1BB

3. $1BB

4. $1BB

5. $1BB

6. $1BB*If students take out a bank loan in Part B, they will need to pay 10% interest on the loan three times, in Parts B, C, and D.

30 Teacher Manual

TEACHER LEDGER (CONTINUED)

Part C: Marketing(Sessions Ten –Eleven) Other Deposits Withdrawals

Company NameShares

of Stock Sold

From VC From Bank* Other Marketing

Package Salaries Rent Loan Interest Other

1. $10BB $1BB

2. $10BB $1BB

3. $10BB $1BB

4. $10BB $1BB

5. $10BB $1BB

6. $10BB $1BB *If students take out a bank loan in Part C, they will need to pay 10% interest on the loan two times, in Parts C and D.

Part D: Sales(Sessions Twelve – Thirteen) Deposits Withdrawals

Company Name Revenue Other Salaries Rent Loan Interest

Loan Repayment Other

1. $1BB

2. $1BB

3. $1BB

4. $1BB

5. $1BB

6. $1BB

Teacher Manual 31

STOCK PIE CHART

A share of stock represents partial ownership in a company and can be thought of as “owning a piece of the pie.”

Example: Whole Pie = $100 BizBucks One Share = $10 BizBucks

32 Teacher Manual

LESSON PLAN

A Finance

Marketing

Manufacturing

Sales

Design

Guiding Question: Why would someone invest in our company?

Objectives• To create a business plan and pitch it to the VC in order to receive the highest pos-

sible price per share of stock

• To design stylish friendship bracelets that are easy and inexpensive to make, but will sell for a high price

What is Design? (10 minutes)• Explain/discuss the design stage of the entrepreneurial cycle

Preparing the Pitch (15 minutes)• Use the Business Plan Worksheet (SP10) to prepare for the VC pitch

Raising Capital/Designing Products (20 minutes)• CEO and VP Finance pitch to the VC• Teams purchase Design Packages from BizMart

• VPs Design lead their teams in product design (on paper)

Reconciling Finances (5 minutes)• VPs Finance reconcile each team member’s Company Ledger (SP14-15)

Homework


DESIGNSession Five: The Design Process

Teacher Manual 33



VOCABULARY


AA

Term in bold is the essential vocabulary. If you are short on time or teaching younger students, it is recommended you focus on the term in bold.

• Companies must raise $15-20BB

• Each company will pay $4BB for a Design Package

• The VC should pay $10-15BB per share of stock, dependent on company pitch quality

• Tell your students who the shoppers will be

• Review Session Five

• Prepare Design Packages (one per company)

º Paper, markers, tape, scissors

• Set up BizMart; display BizMart Price List (39)

• Determine who (you or a volunteer) will be the Venture Capitalist (VC) and Storekeeper; review responsibilities using Teacher/Volunteer Roles (27)





• Present a persuasive argument to an audience

Math


You will need:



• Venture Capitalist Pitch Rubric (37)

• Venture Capitalist Questions (38)

• BizMart Price List (39)

• One Design Package per team

Students will need:

• Company Packet (CP):

º How to Make Friendship Bracelets (CP5)

• Student Packet (SP):

º Business Plan Worksheet (SP10)


Session Five: The Design Process

Business plan

Design

Funding Venture capital

34 Teacher Manual

ASession Five: The Design Process

What is Design? (10 minutes)Display the Entrepreneurial Cycle (12) to show students what stage of the cycle they are beginning. Discuss the concept of design, which means to plan or create something artistically. The purpose of design is to try out many different ideas.

Ask students what types of products are designed. [shoes, cars, backpacks]

Ask students what they think designers think about when designing a product. [color, shape, size, cost, their customers]

Later in the session, VPs Design will lead their company in designing friend-ship bracelets. Each team should consider the following during the design process:

• Who are our customers? What do they want?

• What is trendy right now?

• What will our product look like?

• What will make our product unique?

• How much will it cost to buy supplies?

Preparing the Pitch (15 minutes)To pay for design expenses, the companies will need to raise more funding. Funding is defined as money, in the form of cash, that is available for use. Today, CEOs and VPs Finance will pitch to the Venture Capitalist (VC) while the other team members design their products.

Sample Script

If you were the VC, what information would you like an entrepreneur to include in their pitch? [business and product description, reasons the business will be profitable, a plan to reach goals, how they will get people to purchase their product]

To prepare for the pitch, it is helpful to have a business plan. A business plan is a written document describing a business and its goals.

However, simply creating the best business plan won’t guarantee a great pitch. The plan must be effectively presented. Explain to students that how a company presents itself during a pitch is just as important as what the employ-ees say. Remind students that “you never get a second chance to make a first impression.”

entrepreneurial cycle(12)

12 Teacher Manual

Finance

A B

CD

Design

Sales Marketing

Manufacturing


business plan worksheet(sp10)

10

Company Name:___________________________________________________________

Making a pitch to the Venture Capitalist (VC) is your company’s first chance to raise the money you need to start your company. The business plan helps your company create a strong, well-organized pitch and get more funding.

1. The purpose of our company is:

2. Give two reasons people will want to buy your product(s).

3. What skills do your company’s employees have that will make your business successful?

4. How will your product(s) stand out from the competition?

5. Who do you expect your customers to be? (age, gender, traits)

6. How will people find out about your product(s)?

7. If you were the VC, what other questions would you ask?

Business Plan Worksheet

Teaching TipReview the Venture Capitalist Pitch Rubric (37) as a class.

Teacher Manual 35


Have each company discuss its business plan ideas as a team and complete the Business Plan Worksheet (SP10). Because companies are competing for funding and customers, students should not share their business ideas with the class.

Critical Thinking Opportunity! This is each company’s first group decision. Use the questions below to help make an informed decision.

What is your goal? [to earn $15-20BB for our company’s design ex-penses]

What decision(s) does your group need to make? [how many shares of stock to sell; the best way to convince the VC that we are a good investment]

What factors does your group need to consider? [our product, how much stock to sell, our competitors]

How can your group make the best first impression? [be professional, shake hands, be knowledgeable about your company]

Raising Capital/Designing Products (20 minutes)Although the entire company worked to develop a strong pitch, only the CEO and VP Finance will pitch to the VC to secure funding. The rest of the team will design its product.

Pitching to the VCInstruct each company’s CEO and VP Finance to visit the VC (you or a vol-unteer) as their company name is called. Use the Venture Capitalist Pitch Rubric (37) to evaluate each company’s pitch.

It is at the discretion of the CEO and VP Finance to decide how many shares of stock they will sell and how much money they will accept in exchange for their shares.

• Any money received from a venture capitalist (VC) as an investment in a company is referred to as venture capital

• The VC is only required to make an offer of $10-15BB per share

• CEO and VP Finance need to ensure their company has a minimum of $15-20BB (in total) for design expenses

Record each transaction on the Teacher Ledger (29-30).

Teaching TipUse the pitch preparation time as an opportunity to practice/role play soft skills: handshake, eye contact, firm voice. If time permits, have two students act out the “wrong” way to pitch to the VC, and have the rest of the class offer suggestions to improve the pitch.

Teaching TipTo guide negotiations between the VC and the companies, use the Venture Capitalist Questions (38).

venture capitalist pitch rubric(37)

Teacher Manual 37

Belo

w a

re g

uide

lines

for h

ow m

any

BizB

ucks

(BB)

to g

ive

to c

ompa

nies

:

Sess

ion

Five

: $10

-15B

B pe

r sha

re o

f sto

ck

Sess

ion

Seve

n: $

8-12

BB p

er s

hare

of s

tock

Sess

ion

Ten:

$15

-20B

B pe

r sha

re o

f sto

ck

Supe

rior

Goo

dA

dequ

ate

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ds

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ovem

ent

Com

pany

and

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ploy

ee

cont

ribu

tion

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onst

rate

s A

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g:•

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tion

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t•

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t and

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ar s

peec

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asm

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uct

fe

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es a

nd

selli

ng p

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s

Dem

onst

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s A

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f the

follo

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g:•

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zing

the

inte

rest

s

of th

e co

nsum

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tifyi

ng h

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s pr

oduc

t will

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• Id

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on h

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prod

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s TW

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ng h

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t will

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ion

• Id

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on h

ow to

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ket i

ts

prod

uct(s

)

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onst

rate

s ON

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the

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g:•

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zing

the

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rest

s

of th

e co

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ng h

ow it

s pr

oduc

t will

st

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rom

the

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ion

• Id

eas

on h

ow to

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ket i

ts

prod

uct(s

)

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onst

rate

s NO

NE

of th

e fo

llow

ing:

• R

ecog

nizi

ng th

e in

tere

sts

of t

he c

onsu

mer

• Id

entif

ying

how

its

prod

uct w

ill

stan

d ou

t fro

m th

e co

mpe

titio

n•

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s on

how

to m

arke

t its

pr

oduc

t(s)

VEN

TUR

E C

AP

ITA

LIS

T P

ITC

H R

UB

RIC

cciu

Highlight

cciu

Sticky Note

This needs to be explained that this is the goal for their business and they will be raising money....so each goal is different.

36 Teacher Manual


Instruct each CEO and VP Finance to lead their team members in recording these financial transactions on their own Company Ledger (SP14-15).

Designing Your ProductAs young companies, each team does not have money to waste on experi-ments using string. Thus, all companies will need to first design their products on paper, imagining what they will look like in string.

Display the BizMart Price List (39) and show students string color options.

Invite VP Design from each company to visit the Storekeeper (you or a volun-teer) and purchase a Design Package for $4BB (paper, markers, tape, and scissors).

Students will record all expenses on their Company Ledger (SP14-15).


VP Design will lead the company in product design, considering all factors listed on page 34 of this manual. VPs Design should refer to How to Make Friendship Bracelets (CP5) in the Company Packet (CP) as they consider bracelet style and weave options.

Each employee should create their own designs.

Reconciling Finances (5 minutes)VPs Finance will lead their teams in reconciling all financial transactions from this session with the money in their company’s bank account.

Make sure each team records all transactions from this session:

• Deposit from selling stock

• Withdrawal from purchasing Design Package

VPs Finance will place a check mark in the “Reconciled” column on each team member’s Company Ledger (SP14-15).


IMPORTANT NOTEIf there is additional time, have the companies perform market research before designing their product. Com-panies should ask their customers about style, color, and price prefer-ence for their bracelets. A Market Research Questionnaire can be found in the online support tools at www.bizworld.org.

Teaching TipCompanies may create alternative products [anklets, necklaces, zip-per pulls, bookmarks, dog collars] or themed bracelets [sports teams, holiday, for a cause]. Make addition-al supplies available at BizMart if necessary.

Teaching TipYou may choose to offer services for a fee. Tell students in advance that you are starting your own “service” business. Sample services and rates:

• Attorney: Settle team disputes at $10BB/15 min.

• Accountant: Aid with finance errors at $5BB/15 min.

• Consultant: Provide bracelet support at $5BB/15 min.

(15 minute minimum charge on all professional services)

cciu

Highlight

Teacher Manual 37

Belo

w a

re g

uide

lines

for h

ow m

any

BizB

ucks

(BB)

to g

ive

to c

ompa

nies

:

Sess

ion

Five

: $10

-15B

B pe

r sha

re o

f sto

ck

Sess

ion

Seve

n: $

8-12

BB p

er s

hare

of s

tock

Sess

ion

Ten:

$15

-20B

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r sha

re o

f sto

ck

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rior

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dequ

ate

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ds

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38 Teacher Manual

VENTURE CAPITALIST QUESTIONS

Below are sample questions you (or a volunteer) can use to guide the companies’ pitches.

Basic Sample Questions: Session Five

1. What is the name of your company, and how did you come up with the name?

2. What makes your company/product different from the others?

3. Tell me about the people in your company. What are their strengths?

4. How do you plan to choose the designs you will manufacture?

5. Why is your company going to succeed?

6. Why will people buy your product and not the other companies’ products?

7. How will you make sure that your company tracks its finances accurately?

8. What will your company do to be a responsible member of the community?

Advanced Sample Questions: Session Seven and Ten

1. Tell me the story behind your product’s design.

2. How will you keep production costs low?

3. How do you plan to manufacture a large amount of quality products?

4. How will you set prices for your products?

5. How will you market your product to customers?

6. What will you do if sales are lower than expected?

7. What will you do if sales are better than expected?

8. How do the members of your company handle setbacks and disagreements?

Teacher Manual 39

BizMartPrice list

String Retail Price (Part A) $2BB per bundle

Design Package (Part A) $4BB(paper, markers, scissors, tape)

String Wholesale Price (Part B) $4BB for 8 bundles

Marketing Package (Part C) $10BB(poster board)

Design Consultant Fee $5BB for 15 minutes

Accountant Fee $5BB for 15 minutes

Attorney Fee $10BB for 15 minutes

_________________________________ $_________

_________________________________ $_________

BIZMART PRICE LIST

40 Teacher Manual

LESSON PLAN

A Finance

Marketing

Manufacturing

Sales

Design

Guiding Question: What will our product look like?

Objectives• To build a full-scale prototype

• To close out finances for Business 101 and Part A: Design

Creating a Quality Product (5 minutes)• Discuss what it means to create a quality product

Prototyping (25 minutes)• Demonstrate how to make a prototype using How to Make Friendship Bracelets

(CP5)

• VPs Design lead their teams in making a prototype based on their designs

Finance Worksheet A (20 minutes)• VPs Finance lead their teams in using the Company Ledger (SP14-15) to complete

Finance Worksheet A (SP16)

• VPs Finance check to ensure all their team members have an accurate financial statement

Homework


DESIGNSession Six: Building a Prototype

Teacher Manual 41



VOCABULARY



AA

• Retail price of string: $2BB per bundle

• At the end of the session:

º Collect rent ($1BB per company)

º Collect salaries ($1BB per employee)

• Review Session Six

• Pre-sort bracelet string by color

• Set up store; display BizMart Price List (39)

• Determine who (you or a volunteer) will be the Storekeeper; review responsibilities using Teacher/Volunteer Roles (27)



• Follow a set of instructions read aloud



Math


You will need:




• Sample Finance Worksheet A (45)

• Bracelet string

Students will need:



º Our Supply List (CP6)



º Finance Worksheet A (SP16)

Session Six: Building a Prototype

Cash on hand

Efficient

Prototype Retail

42 Teacher Manual

ASession Six: Building a Prototype

Creating a Quality Product (5 minutes)Does the long-term success of a business depend on having a quality prod-uct? Absolutely! Discuss with students what it means to make a quality product and why it is important.

Sample Script

What do you expect from an item you purchase? [that it doesn’t break, it looks good]

Why is it important to make a quality product? [so a customer will buy more, to have a good reputation]

What should your company think about to make sure it is manufactur-ing quality bracelets? [it looks good, it’s durable (doesn’t fall apart), it’s the appropriate size]

Prototyping (25 minutes)Now that each company has designed its product(s) on paper, it needs to make samples called prototypes. A prototype is a full-scale model of a new product or new version of an existing product.

Each employee needs to make at least one prototype so they can learn how to make one. This practice will make the company more efficient during the manufacturing process. Efficient means operating in a way that does not waste time, money, or effort.

Before making a prototype, each company will need to decide which col-ors of string it wants to buy (based on product design) from BizMart. See BizMart Price List (39).

Since students are only creating prototypes at this time, they can purchase string at the retail price of $2BB per bundle. Retail price is defined as the price of goods in smaller quantities, not intended for resale.

POTENTIAL HURDLE: Some students may wish to purchase string at the wholesale price of $4BB per 8 bundles. This is not an option until manufac-turing (Session Seven).

Explain to students that creating prototypes is expensive. Therefore, compa-nies should not commit to making bulk purchases of materials until they know exactly what its product(s) will look like. At this time, students have multiple designs that they will prototype. Students should use Our Supply List (CP6) in the Company Packet (CP) to guide this discussion.

Instruct VP Design from each company to visit BizMart to purchase string.

Teaching TipDemonstrate how to make a simple double twist style bracelet before stu-dents start making prototypes. For a video demonstration, visit the online support tools at www.bizworld.org.

If students ask you to demonstrate more than once, tell them you will – for a consulting fee of $5BB per 15 minutes.

Help students estimate the length of string needed for a bracelet using classroom objects (e.g., 28 inches is 1.5 desk lengths).

our supply list(cp6)

6

Use the questions below to help your company decide how much string to

purchase from BizMart.

Prototyping Supplies (retail price: $2BB per bundle)

What colors do we want to purchase?

How many bundles of each color do we need?

What will our total cost be (number of bundles x $2BB)?

Manufacturing Supplies (retail price: $2BB per bundle; wholesale price: $4BB for 8 bundles)

What colors do we want to purchase?

How many bundles of each color do we need?

How many bundles will we purchase at the wholesale price? At the retail price?

What will our total cost be?

Our Supply List

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Teacher Manual 43



Instruct VPs Design to lead their team members in recording these financial transactions on their own Company Ledger (SP14-15).

The VP Design should lead their company in prototype production. Use How to Make Friendship Bracelets (CP5) as a guide. Help and additional demon-strations from the teacher are available for a fee.

Once companies have completed their prototypes, have VP Design for each company lead the team in choosing which design(s) to use and how many products to manufacture. They will have the option to purchase string at the wholesale price during Part B: Manufacturing.

Finance Worksheet A (20 minutes)It is now time to collect the following:

• Salaries ($1BB per employee)

• Rent ($1BB per company)

Instruct VPs Finance to prepare salaries and rent for collection and lead their teams in recording these financial transactions on their Company Ledger (SP14-15).

Instruct students to turn to Finance Worksheet A (SP16). Explain to stu-dents that this will summarize all financial transactions from the beginning of BizWorld to the end of Part A: Design.

Use Sample Finance Worksheet A (45) to guide students in completing their own copy.

Once finished, VPs Finance will count their company’s cash on hand (mon-ey in the form of cash that a business has at a particular time) and reconcile that amount with the total listed on line 17 of Finance Worksheet A (SP16)

Instruct the VPs Finance to initial the bottom of each employee’s Finance Worksheet A (SP16) to confirm that it has been reconciled with the compa-ny’s bank account.

Teaching TipIf your students would like to protect their unique and creative product designs, the company can apply for a patent. For the patent applica-tion, visit the online support tools at www.bizworld.org.

finance worksheet a(sp16)

16

Finance Worksheet(Business 101 and Part A, Sessions 1-6) A

Company Stock

1. How many shares of stock did you get from the state? ______________

2. How many shares of stock did you sell to the Venture Capitalist (VC)? - ______________

3. Total shares of stock you currently have on hand.........................................................................=

4. How many BizBucks did the founders contribute? ______________

5. How many BizBucks did you receive from the VC? +______________

6. Other cash in (Description:____________________________________) +______________


8. Total BizBucks you received during Business 101 and Part A (Cash In)................................=

9. How many BizBucks did you spend to incorporate? ______________

10. How many BizBucks did you spend on the Design Package? +______________

11. How many BizBucks did you spend on string? +______________

12. How many BizBucks did you spend on salaries? +______________

13. How many BizBucks did you spend on rent? +______________

14. Other cash out (Description:____________________________________) +______________


16. Total BizBucks you spent during Business 101 and Part A (Cash Out).................................=

17. How many BizBucks does your company currently have on hand?......................................=

Count your BizBucks and make sure this number matches the number in the box.

Cash In (Deposits)

Cash Out (Withdrawals)

Cash on Hand = Total Cash In - Total Cash Out

Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:

VP Finance __________ (Initial)

(paper, markers, scissors, tape)

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44 Teacher Manual


Notes for Finance Worksheet A (SP16):

• Line 3 – Companies reconcile their shares of stock

• Line 4 – Founders contributed $1BB or $5BB collectively

• Line 5 – Check Teacher Ledger (29-30) to confirm the amount each company received from the VC

• Line 6 – Record the company’s total amount received for the Parent/Guardian Letter (SP1)

• Line 9 – Companies paid $1BB to incorporate

• Line 11 – Check the Teacher Ledger (29-30) to confirm the amount each company spent on string


sample finance worksheet a(45)

Teacher Manual 45

SAMPLE FINANCE WORKSHEET A

16


Company Stock



















Cash In (Deposits)



Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:



Parent/Guardian Letters

102

8

12050

26

1446100

16

10

JD

Teacher Manual 45

SAMPLE FINANCE WORKSHEET A

16


Company Stock



















Cash In (Deposits)



Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:



Parent/Guardian Letters

102

8

12050

26

1446100

16

10

JD

46 Teacher Manual

LESSON PLAN

B Finance

Design

Sales Marketing

Manufacturing

Guiding Question:

What are the advantages and disadvantages of taking out a bank loan?

Objectives• To estimate manufacturing expenses

• To identify ways to raise additional funds for manufacturing expenses

• To identify different manufacturing techniques and their advantages/ disadvantages

What is Manufacturing? (5 minutes)• Explain/discuss the manufacturing stage of the entrepreneurial cycle

Manufacturing Techniques (10 minutes)• Explain different manufacturing techniques

• Discuss which techniques will work best for each company

How a Bank Makes Money (15 minutes)• Explain/discuss bank loans using How a Bank Makes Money (CP7)

• Explore pros/cons of options for raising capital using Venture Capitalist vs. Bank (CP8)

Raising More Capital – VC vs. Bank (15 minutes)• Read News Flash 2 (53)

• VPs Finance lead their teams in discussion of raising capital

• CEOs and VPs Finance visit the VC or bank


Homework


MANUFACTURINGSession Seven: The Manufacturing Process

Teacher Manual 47



VOCABULARY



B B

• Bank loans are given in $10BB increments and must be repaid with a 10% interest fee

• Companies need $15-20BB for manufacturing expenses

• The VC should pay $8-12BB per share of stock, dependent on quality of company pitch




• Compare the advantages and disadvantages of a situation


Math


• Review Session Seven

• Determine who (you or a volunteer) will be the Banker/Venture Capitalist (VC); review responsi-bilities using Teacher/Volunteer Roles (27)

• Copy/cut Bank Loan Receipt (55)

You will need:• Entrepreneurial Cycle (12)• Teacher/Volunteer Roles (27)• Teacher Ledger (29-30)• BizMart Price List (39)• Venture Capitalist vs. Bank Key (52)• News Flash 2 (53)• Banker Questions (54)• Bank Loan Receipt (55)• How a Bank Makes Money (CP7)

Students will need:• Company Packet (CP)

º How a Bank Makes Money (CP7) º Venture Capitalist vs. Bank (CP8)

• Student Packet (SP) º Company Ledger (SP14-15)

Session Seven: The Manufacturing Process

Assembly line

Debt

Interest

Job shop

Loan

Manufacturing

Stock market

48 Teacher Manual

BSession Seven: The Manufacturing Process

What is Manufacturing? (5 minutes)Display the Entrepreneurial Cycle (12) to show students what stage of the cycle they will begin. Discuss the concept of manufacturing, the making or producing of goods (products).

VP Manufacturing will lead their company in making friendship bracelets. Each team should consider the following during the manufacturing process:

• How much string will we need?

• How much will it cost to buy supplies?

• How can we ensure we have a high-quality product?

• How can we make the greatest number of high-quality bracelets in the amount of time we have?

Each team should aim to produce at least 25 bracelets. The more products each team makes, the more each team will have to sell at the Sales Bazaar!

Manufacturing Techniques (10 minutes)There are several ways companies produce goods in large quantities. Two examples of manufacturing techniques are job shop and assembly line.

Job shop is a process in which one individual produces a product from start to finish. Ask the class to identify goods that are produced using the job shop model. [sandwiches, jewelry, pottery]

Ask students to identify some advantages and disadvantages of manufac-turing goods in this manner. [low production rate with an increased cost, but typically an increase in quality]

Assembly line is a process in which a product is assembled in a step-by-step process by multiple individuals, each performing a specific task. Ask the class to identify goods that are produced using the assembly line model. [cars, clothes, shoes, electronics]

Ask students to identify some advantages and disadvantages to manufactur-ing goods on an assembly line. [high production rate with decreased cost, but typically results in a decrease in quality]

Ask students to discuss which manufacturing process they think would work best for the friendship bracelet industry. [answers will vary]

Teaching TipDiscuss Henry Ford, who revolution-ized the automobile industry through the use of the assembly line. Henry Ford founded the Ford Motor Com-pany in 1903.

His use of, and improvements to, the assembly line process dramatically reduced the time and cost required to make an automobile (the Model-T), cutting production time from 36 hours to 90 minutes per automobile.


12 Teacher Manual

Finance

A B

CD

Design

Sales Marketing

Manufacturing


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Teacher Manual 49

B Session Seven: The Manufacturing Process

How a Bank Makes Money (15 minutes)Some teams may require more funding to start the manufacturing process.

Ask students where else companies can get funding to cover business expens-es. [borrow money from the bank, family and/or friends, sell stock]

Individuals and companies can receive money from a bank by taking out a loan. A loan is a sum of money borrowed that is repaid with interest. Inter-est is the fee paid for borrowing money. A loan is also a debt, or something owed, such as money, products, or services.

If banks give out money in loans, how do they make money? Use the How a Bank Makes Money (CP7) illustration to explain the following points:

• Banks earn revenue by charging interest on loans.

• One of the bank’s expenses is paying interest to each customer who saves money in a bank account. A customer’s money is on loan to the bank, so the bank pays interest for borrowing the money.

• The interest rate charged on loans is greater than the interest rate custom-ers earn through savings, therefore, the bank earns a profit.

Display the Venture Capitalist vs. Bank (CP8) handout and discuss the fol-lowing:

• The pros and cons of borrowing from the bank

• The pros and cons of selling stock to the Venture Capitalist (VC)

Ask students if they think it is better to sell more shares of their company or borrow money from the bank with interest for this second round of funding. [answers will vary based on perspective]

Raising More Capital – VC vs. Bank (15 minutes)

Stock update! Read News Flash 2 (53) to your students. Important: Person-alize this document before class!

Use the Stock Pie Chart (31) to explain that, until now, each piece of a com-pany’s pie (stock) was worth whatever amount the VC was willing to pay for it in Session Five.

However, the price of a stock may rise or fall dependent on its value on the stock market, where stocks are bought and sold. The value of stock con-stantly changes, depending on outside factors like events, trends, and time of year.

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Teaching TipHave students act out this concept by role playing as the bank, the person saving money, and the person bor-rowing money. Students exchange BizBucks as it is shown in the How a Bank Makes Money (CP7) illustra-tion.

Teaching TipHave students act out this concept by role playing as the bank, the person saving money, and the person bor-rowing money. Students exchange BizBucks as it is shown in the How a Bank Makes Money (CP7) illustra-tion.

Important Note!

All shares of stock fall to $8-12BB.

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50 Teacher Manual

BSession Seven: The Manufacturing Process

Now, each share of stock is worth $8-12BB.

As a result of the news flash, if companies need to raise additional capital today, they have the option of taking out a loan from the bank or selling more shares of stock to the VC, but the value of the stock is likely to be lower.

Bank loans will be allocated in increments of $10BB and have a 10% inter-est fee ($1BB per $10BB borrowed), which will be paid at the end of each stage of the Entrepreneurial Cycle (on Finance Worksheet B, C, and the Income Statement).

When borrowing money from the bank, each company should make sure to only borrow what it needs because the loan will be repaid after the Sales Ba-zaar. Money received as a loan is expected to be turned into extra revenue (i.e., more products or products worth more money).

Display the BizMart Price List (39).

Companies can use the price list to estimate their manufacturing expenses. Each company will need a total of $15-20BB for manufacturing expenses.

Once companies have an estimate of their expenses, each company’s VP Finance should lead a discussion to determine if the company needs more funding and where it should get the funding (VC or Banker).

Critical Thinking Opportunity! Students will need to work as a team to make a decision about where to get capital for their company. Students should use the questions below to help guide their discussion.

What is your goal? [to have $15-20BB for manufacturing expenses]

What decision(s) does your group need to make? [How much money do we need for manufacturing expenses? Where should we get it?]

What factors does your group need to consider? [current amount of cash on hand, estimate of manufacturing expenses, pros/cons of raising funds from both the VC and bank, reasons we need the money]

Instruct CEO and VP Finance from each company to visit the Banker or VC (you or a volunteer) as they are called up by company name. Each team that borrows money from the bank will need to fill out a Bank Loan Receipt (55) to document the transaction.

bizmart price list(39)

Teacher Manual 39

BizMartPrice list

String Retail Price (Part A) $2BB per bundle

Design Package (Part A) $4BB(paper, markers, scissors, tape)

String Wholesale Price (Part B) $4BB for 8 bundles

Marketing Package (Part C) $10BB(poster board)

Design Consultant Fee $5BB for 15 minutes

Accountant Fee $5BB for 15 minutes

Attorney Fee $10BB for 15 minutes

_________________________________ $_________

_________________________________ $_________

BIZMART PRICE LIST

Teaching TipUse Banker Questions (54) to guide the Banker in loaning money. Review these questions with the class before students visit the VC or the Banker.

Teaching TipCompanies will have the opportunity to raise more capital from the VC or Banker in Session Ten. If you would like to skip this third round of financ-ing to save time, make sure each company raises $35-40BB to cover both its manufacturing and marketing expenses.

Teacher Manual 51

B Session Seven: The Manufacturing Process

Each VP Finance should store their Bank Loan Receipt (55) in their bank ac-count with their BizBucks and shares of stock.


Instruct VPs Finance to lead their team members in recording these financial transactions on their own Company Ledger (SP14-15).




• Deposit from bank loan

VP Finance will place a check mark in the “Reconciled” column on each team member’s Company Ledger (SP14-15).



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bank loan receipt(55)

Teacher Manual 55

BANK LOAN RECEIPT

Date___________________ Company Name______________________________________________________

Loan amount: $10BB $20BB $30BB Other__________________

Loan issued in: Part B Part C (circle one) 10% interest paid on 10% interest paid on Finance Worksheets B, C, Finance Worksheet C and Income Statement and Income Statement

IMPORTANT: Bank loan to be repaid in FULL on the Income Statement

____________________________________________________________________ Employee Signature

For Bank Use ONLY Date Paid ________________________ Amount Paid $______________BB

Bank Loan Officer’s Signature _______________________________________








BANK LOAN RECEIPT

52 Teacher Manual

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Teacher Manual 53

NEWS FLASH 2

For Immediate Release

Confidence Low for Friendship Bracelet Industry

Investors are excited about the growing friendship bracelet industry. They believe

that this new industry has a large potential market and will create many jobs in the

______________________ area.

Yet, investors are still uncertain about the new companies in this field. Although many

have promising prototypes, none have entered into full-scale production yet and have

not generated any revenue. As a result, the friendship bracelet industry was down across

the board in heavy trading yesterday. All friendship bracelet stock prices fell to as low as

$8BB per share.

NEWSFLASH!

(name of city)

54 Teacher Manual

BANKER QUESTIONS

Basic Sample Questions: Session Seven

1. Please describe your company and product.

2. What makes your company and product stand out from the other companies?

3. Why is your company seeking a loan? How much money do you hope to borrow?

4. How much money does your company currently have?

5. Do you have investors (a venture capitalist)?

6. If so, how much did the VC invest in your company?

7. Do you have financial documents showing your previous withdrawals and deposits (Ask students to share their Company Ledger (SP14-15) with the Banker.)

8. What is the minimum amount of money that you need to operate? (i.e., pay expenses like rent, salaries, and for supplies)

9. If you receive a loan, how do you plan to use the money?

Advanced Sample Questions: Session Ten

1. Describe your company and product; explain why your company is a low risk for the bank.

2. Why do you need a loan? How much money do you hope to borrow?

3. How much money do you currently have?

4. How much money did your company previously receive from the VC? The bank?

5. Please show us your financial documents and explain your past spending habits.

6. Describe, in detail, how you plan to use the money from the loan.

7. Are you going to make a profit? (i.e., Does it cost less to produce your product than you will charge for it?)

8. How much revenue do you anticipate making at the Sales Bazaar?

9. How do you plan to pay the interest on your loan? The loan repayment?

Below are sample questions you (or a volunteer)can use to guide the discussions between the

companies and the Banker.

Teacher Manual 55

BANK LOAN RECEIPT















BANK LOAN RECEIPT

56 Teacher Manual

LESSON PLAN

B Finance

Design

Sales Marketing

Manufacturing

Guiding Question: How can we make our best product efficiently?

Objectives• To choose and put into action a manufacturing process that will result in the greatest

number of high-quality products made in a limited time

• To manufacture products

Manufacturing Time! (45 minutes)• Review How to Make Friendship Bracelets (CP5)

• Students manufacture their bracelets

• Allow students to purchase string as necessary from BizMart

• Record inventory of completed bracelets on Finance Worksheet B (SP17)

Reconciling Finances (5 minutes)• VPs Finance reconcile each team member’s Company Ledger (SP14-15)

Homework • For suggestions, see the online support tools at www.bizworld.org

MANUFACTURINGSession Eight: Manufacturing Your Product

Teacher Manual 57



VOCABULARY



B B

• Each company should produce at least 25 bracelets during Session Eight

• Review Session Eight








Math


You will need:




• Bracelet string

• Ziploc bags

Students will need:



º Our Supply List (CP6)



º Finance Worksheet B (SP17)

Session Eight: Manufacturing Your Product

Inventory Scarcity Wholesale

58 Teacher Manual

BSession Eight: Manufacturing Your Product

Manufacturing Time! (45 minutes)During the manufacturing process, BizMart will sell string at both the retail and wholesale price.

Remind students that the retail price is defined as the price of goods in smaller quantities, not intended for resale. Wholesale price is defined as the price of goods in large quantities, sold for the purpose of resale.

String bought at the wholesale price, $4BB, can ONLY be purchased in groups of eight bundles. String purchased in quantities fewer than eight bun-dles should be sold at the retail price of $2BB per bundle.


Critical Thinking Opportunity! Each company will need to work as a team to determine how much string and what colors to purchase. Companies should use Our Supply List (CP6) in the Company Packet (CP), to guide the discussion.

Once a company has a plan of what to purchase from BizMart, VPs Manu-facturing should purchase string from the Storekeeper.


Instruct VPs Manufacturing to lead their team members in recording these financial transactions on their own Company Ledger (SP14-15).

As students manufacture their bracelets, encourage the VPs Marketing to lead their teams in discussing logos and slogans for their companies, as well as commercial ideas.

Companies should spend the remaining time manufacturing their bracelets using How to Make Friendship Bracelets (CP5) as a guide. Students may choose to manufacture using the job shop or assembly line model. If students are using an assembly line model, they may require more assistance from the teacher.

Manufacturing Reminders:

• Length of string needed for the double twist style is 28 inches (1.5 desk lengths)

• Offer extra bracelet-making demonstrations at the consultant fee of $5BB per 15 minutes

IMPORTANT NOTE!Retail price: $2BB per bundleWholesale price: $4BB for 8 bundles

Teaching TipTo teach students the principle of scarcity (shortage of supply), charge a higher price ($3BB per bundle) for the last two bundles of any color in BizMart.

Scarcity is a basic concept of eco-nomics, and it can be powerful. It can force us to make difficult choices such as choosing to go without, to pay more than we wanted for an item, or to shop elsewhere for the items we want.

This lesson also provides an oppor-tunity to introduce the economic con-cept of supply and demand.

Teacher Manual 59

B Session Eight: Manufacturing Your Product

At the end of class, students will perform an inventory count. Inventory is the number of finished products on hand. Instruct students to record the inven-tory (of completed bracelets) at the bottom of Finance Worksheet B (SP17).

It is recommended that each company manufacture approximately 25+ bracelets during the manufacturing stage.

Reconciling Finances (5 minutes)VPs Finance will lead their teams in reconciling all financial transactions from this session with the cash in their company’s bank account.


• Withdrawal(s) from purchasing string

• Any consultation fees/fines

VP Finance will place a check mark in the “Reconciled” column of each team member’s Company Ledger (SP14-15).


Teaching TipsFor safekeeping, VPs Manufacturing should store all bracelets and extra string in their company’s bank ac-count with its other assets.

If students need more manufacturing time, allow a set number of prod-ucts (e.g., one per employee) to be made during recess, lunch, after school, or at home. This prevents one team/individual from producing an excess quantity or having an unfair advantage.

60 Teacher Manual

LESSON PLAN

BB Finance

Design

Sales Marketing

Manufacturing

Guiding Question: How can we create an appropriate price for our

products?

Objectives• To establish a pricing structure that will be competitive and profitable

• To close out finances for Part B: Manufacturing

Creating a Pricing Structure (30 minutes)• Explain/discuss what a pricing structure is and how to create one

• Students create a pricing structure for their company

• Companies price their bracelets

Finance Worksheet B (20 minutes)• VPs Finance lead their teams in using the Company Ledger (SP14-15) to complete

Finance Worksheet B (SP17)


Homework • For suggestions, see the online support tools at www.bizworld.org

MANUFACTURINGSession Nine: Pricing Your Product

Teacher Manual 61



VOCABULARY


B BB


At the end of the session:

• Collect rent ($1BB per company)

• Collect salaries ($1BB per employee)

• Collect bank loan interest ($1BB per $10BB borrowed)

• Interest is paid on all loans from Sessions Seven

• Review Session Nine




You will need:



• Sample Pricing Worksheet (65-66)

• Sample Finance Worksheet B (67)

Students will need:• Student Packet (SP)

º Pricing Worksheet (SP11-12)


º Finance Worksheet B (SP17)

• Bracelets/string (from Session Eight)

Pricing structure





Math

• Add, subtract, and multiply whole numbers fluently

• Complete a two-step equation

Session Nine: Pricing Your Product

62 Teacher Manual

BCreate a Pricing Structure (30 minutes)One of the first things discussed in BizWorld was:

Revenue – Expenses = Profit

In order to make a profit, revenue must be greater than expenses. One factor in making a profit is ensuring the product is priced appropriately. To help each company make a profit at the Sales Bazaar, each team will create a pricing structure. A pricing structure is the planned selling price of prod-ucts calculated to generate a desired profit.

The price of each product should take into account the:

• Cost of supplies to manufacture it

• Cost of other company expenses [salary, rent]

• Time spent manufacturing

• Competitors’ anticipated prices

Instruct students to turn to the Pricing Worksheet (SP11-12) found in their Student Packet (SP). This worksheet will help students determine the best price for their products, based on their estimated expenses ($60BB).*

*The $60BB takes into account total BizWorld expenses: incorporation fee, purchases from BizMart, rent, and salaries for the duration of the program.

It is important that any company that took out a bank loan add the loan to its “Total Estimated Expenses” (Bank loan amount + $60BB). Although a bank loan is not an expense in the real world, it needs to be factored into the equation in BizWorld because students repay the loan after the Sales Bazaar.

Use the Sample Pricing Worksheet (65-66) to demonstrate how students will fill out their own company’s Pricing Worksheet (SP11-12).

Review the following information as you guide students through the Pricing Worksheet (SP11-12):

• Did the example company take out a bank loan? [yes]

• How much did it borrow? [$100BB]

• What does the equation for the total estimated expenses and the bank loan look like? [$60BB + $100BB = $160BB]

• In order for the company to profit, what has to be true about the revenue? [revenue must be greater than $160BB]

• Where and how will the company earn revenue? [at the Sales Bazaar, selling their bracelets]

Session Nine: Pricing Your Product

pricing worksheet(sp11-12)

11

Will your company make a profit?

The following activity will assist your company in creating a pricing structure necessary to make a profit. The total estimate of expenses for each company is $60BB plus any bank loans. Every company’s profit equation is:

Total Estimated Revenue - Total Estimated Expenses* = Total Estimated Profit

$__________________BB - $_____________________BB = $__________________BB

To make a profit, your “Total Estimated Revenue” must be greater than your “Total Estimated Expenses.” Your company’s goal is to have a greater profit than the other companies in the industry.

*Did your company take out a loan from the bank? Yes No

If you checked “no,” your company’s total estimated expenses are $60BB. If you checked “yes,” your company’s expenses are $60BB plus the amount of the loan. Fill in the “Total Estimated Expenses” line with the correct number.

To create a pricing structure for your products, follow the steps below:

1. Separate your products into 2-3 groups based on the different prices you will charge. You can charge a different price based on size, quality, or complexity of the product.

2. Count the products in each group and record the number in the “# of products” column below.

3. Using a pencil, choose the price your team will charge for a product in each group and write it in the “Price per product” column in the chart above.

4. Solve the multiplication equation for each row in the chart above. # of products X Price per product = Potential revenue (sales)Example: 5 X $2BB = $10BB

Pricing Worksheet

($60BB + bank loan)

# of products X Price per product = Potential revenue (sales)

____________Products X __________________BB = ___________________BB

____________Products X __________________BB = +___________________BB

____________Products X __________________BB = +___________________BB

Total Estimated Revenue = _____________________BB

Teaching TipsExtend the factors of pricing informa-tion by discussing why branded prod-ucts cost more than generic products. [branded products cost more be-cause increased money is spent on marketing and packaging]

Use Memo: The Importance of Pack-aging, found in the online support tools at www.bizworld.org, to em-phasize this point.

Teacher Manual 63

B Session Nine: Pricing Your Product

Instruct VPs Finance to lead their teams through completing this portion of the Pricing Worksheet (SP11-12).

When all companies have finished, have them sort their products into 2-3 different groups. When sorting their products, students should consider the following aspects of the bracelets:

• Size [Is it longer? Shorter? Did it require more string?]

• Quality [Does is look good? Will it last a long time?]

• Complexity [Is it an intricate or special pattern?]

Once the companies have sorted their bracelets into groups, use the Sample Pricing Worksheet (65-66) to demonstrate how to assign an appropriate price to them:

• How do we calculate revenue? What does the equation look like? [num-ber of bracelets sold multiplied by price for each bracelet: Quantity x Price = Revenue]

• How many products are in each group? [5, 10, 10]

• If the company charges $2BB for each bracelet in the first group, how much revenue will it earn? [5 x 2 = 10]

• If the company charges $5BB for each bracelet in the second group, how much revenue will it earn? [10 x 5 = 50]

• If the company charges $10BB for each bracelet in the third group, how much revenue will it earn? [10 x 10 = 100]

• How much is the total estimated revenue at these prices? [$10BB + $50BB + $100BB = $160BB]

To know if these prices will allow the company to make a profit, use the profit equation to calculate the company’s anticipated profit:

$160BB - $160BB = $0BB

Revenue – Expenses = Profit

Did this company make a profit? [no]

What does that mean they need to do? [raise their prices because manufac-turing time is over]

Remind students that it is important to make the most revenue they can at the Sales Bazaar because this will be their only opportunity to make money. Stress to students that profit is one of the main factors used in determining how successful a company is – the greater their profit is, the better.

sample pricing worksheet(65-66)

Teacher Manual 65

B

11




$__________________BB - $_____________________BB = $__________________BB









Pricing Worksheet

($60BB + bank loan)


____________Products X __________________BB = ___________________BB

____________Products X __________________BB = +___________________BB

____________Products X __________________BB = +___________________BB


SAMPLE PRICING WORKSHEET

(loan of $100BB in this example)

160

3

51010

$2$5$10

$10$50$100$160

160 0

Teaching TipIf students need more examples, show them what other prices would look like using the Sample Pricing Worksheet (65-66). Plug in differ-ent numbers to show them how this would affect their “bottom line” (the profit).

64 Teacher Manual

BSession Nine: Pricing Your Product

Instruct each company to use the Pricing Worksheet (SP11-12) to create a pricing structure and answer the pricing questions. (Note: Students may need to complete it more than once in order to find prices that will generate a large amount of revenue.)

Once each company has determined a pricing structure for its products, VP Manufacturing should lead their team in pricing their products.

Finance Worksheet B (20 minutes)It is now time to collect the following:



• Bank loan interest ($1BB per $10BB borrowed)

Instruct VPs Finance to prepare salaries, rent, and bank loan interest (if appli-cable) for collection and lead their teams in recording these financial transac-tions on their Company Ledgers (SP14-15).

Instruct students to turn to Finance Worksheet B (SP17). Explain to students that it will summarize all financial transactions for Part B: Manufacturing.

Use Sample Finance Worksheet B (67) to guide students in completing their own copy. Once finished, VPs Finance will reconcile their company’s cash on hand.

Instruct VPs Finance to initial the bottom of each employee’s Finance Work-sheet B (SP17) to confirm that it has been reconciled with the company’s bank account.

Notes for Finance Worksheet B (SP17):

• Line 21 – Refer to Line 17, Finance Worksheet A (SP16)

• Line 23 – If the company did not visit the VC, this amount is zero

• Line 30 – Interest rate is 10% or $1BB per $10BB borrowed

• Company Inventory – Total number of completed products


finance worksheet b(sp17)

17

Finance Worksheet(Part B, Sessions 7-9) B

Company Stock

18. How many shares of stock did you have at the end of Part A? ______________

19. Did you sell additional shares to the VC? If yes, how many? - ______________


21. How many BizBucks did you have at the end of Part A? ______________

22. How many BizBucks did you borrow from the bank? +______________

23. Did you receive additional BizBucks from the VC? If yes, how many? +______________



26. Total BizBucks you received during Part B (Cash In)....................................................................=

27. Did you spend additional BizBucks on string? How many? ______________



30. How many BizBucks did you spend on interest? +______________



33. Total BizBucks you spent during Part B (Cash Out)......................................................................=



How many products did your company manufacture?

Cash In (Deposits)



Company Inventory

Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:


Total Products:

(Line 3, Finance Worksheet A)


Teaching TipsUse pieces of masking tape to dis-play the prices of bracelets. Instruct students to write a price on a piece of masking tape and stick it on the table in front of the products. This can be done during the marketing time (Ses-sions Ten and Eleven) or right before the Sales Bazaar, if necessary.

Do you want to have students pack-age their products? Visit the online resources at www.bizworld.org for a lesson plan on packaging products.

Teacher Manual 65

11




$__________________BB - $_____________________BB = $__________________BB









Pricing Worksheet

($60BB + bank loan)


____________Products X __________________BB = ___________________BB

____________Products X __________________BB = +___________________BB

____________Products X __________________BB = +___________________BB


SAMPLE PRICING WORKSHEET

(loan of $100BB in this example)

160

3

51010

$2$5$10

$10$50$100$160

160 0

66 Teacher Manual

12

5. Add all the numbers in the far right column (the potential revenue for each group) to calculate your “Total Estimated Revenue.”

6. Put your “Total Estimated Revenue” into the profit equation at the top of page 11. Remember, your goal is to make the highest amount of revenue possible. The higher your profit, the more money your company will make.

When pricing your product, you should also think about different situations that could happen during the Sales Bazaar. Discuss the following situations and how they could affect your prices. Develop a strategy for how to handle each situation to be sure your company will make a profit at the Sales Bazaar.

1. Other companies are discounting their products towards the end of the Sales Bazaar. Should you do the same? How will offering discounts affect your profit?

2. You are the last company with products remaining at the Sales Bazaar and there are still customers who want bracelets. What could you do to your prices? Why?

3. Two customers want the same product, and you only have one left. What could you do? Why?

BONUS: In the space below, describe another situation that could affect your prices during the Sales Bazaar and your solution.

Pricing Worksheet(continued)

SAMPLE PRICING WORKSHEET (CONTINUED)

[keep prices the same and do nothing; offer deals like “2 for the price of 1”; discount your prices; answers will vary] Note: if teams offer a discount, they need to make sure that they are still charging a high enough price to earn enough revenue to make a profit.

[raise your prices because no one else can sell anything; sell bracelets to other companies at a high price so they can sell their customers; answers will vary]

[auction off the item by having two customers bid on the item, raising the price of it; name a higher price; answers will vary]

*

*How much of a profit will the sample company make? $0BB! The company needs to go back and raise its prices so it can make more revenue and have a higher profit.

[answers will vary]

Teacher Manual 67

17

Finance Worksheet(Part B, Sessions 7-9) B

Company Stock

18. How many shares of stock did you have at the end of Part A? ______________



21. How many BizBucks did you have at the end of Part A? ______________

22. How many BizBucks did you borrow from the bank? +______________




26. Total BizBucks you received during Part B (Cash In)....................................................................=

27. Did you spend additional BizBucks on string? How many? ______________






33. Total BizBucks you spent during Part B (Cash Out)......................................................................=



How many products did your company manufacture?

Cash In (Deposits)



Company Inventory

Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:


Total Products:



SAMPLE FINANCE WORKSHEET B

80

8

1010000

20

461100

12

8

32

JD

LESSON PLAN

68 Teacher Manual

Finance

Design

Sales Marketing

ManufacturingCGuiding Question:

What logo and slogan will be memorable and get people’s attention?

Objectives• To explore various aspects of marketing and advertising

• To create a cohesive and persuasive marketing campaign

What is Marketing? (15 minutes)• Explain/discuss the marketing stage of the entrepreneurial cycle

• Memo: Logos and Slogans (SP13)

Raising More Capital (10 minutes)• Read News Flash 3 (75)

• VPs Finance lead their teams in discussion of raising capital

• CEOs and VPs Finance visit the VC or bank

Creating the Campaign (20 minutes)• VPs Marketing visit BizMart to purchase a Marketing Package

• VPs Marketing lead their companies in creating a marketing campaign


Homework


MARKETINGSession Ten: Marketing Your Company

Teacher Manual 69

SKILLS*


VOCABULARY



CMATERIALS AND RESOURCES

C Session Ten: Marketing Your Company

• Companies need $18-20BB for marketing expenses

• Each company will pay $10BB for a Marketing Package

• The VC should pay $15-20BB per share, dependent on quality of company pitch

• Bank loans are given in $10BB increments and must be repaid with a 10% interest fee

• Review Session Ten

• Prepare Marketing Package (poster board - one per company)


• Determine who (you or a volunteer) will be the Storekeeper, Banker, and VC, and review responsi-bilities using Teacher/Volunteer Roles (27)

You will need:




• Memo: Logos and Slogans Key (74)

• News Flash 3 (75)

• Marketing Package (one per company)

Students will need:


º Creating a Marketing Campaign (CP9)


º Memo: Logos and Slogans (SP13)






• Create a persuasive marketing campaign for a product

Math


Advertising

Brand

Logo

Marketing

Marketing campaign

Slogan

70 Teacher Manual


What is Marketing? (15 minutes)

Sample Script

How do you decide what you want to buy? [what I like, what my friends like, commercials/ads that I see]

What influences your decision? [style, trends, other peoples’ opinions, commercial]

How do you learn about what companies/products exist? [from other people, Internet, commercials, billboards]

Display the Entrepreneurial Cycle (12) to show students what stage of the cy-cle they are beginning. Review the previous two stages (Design and Manufac-turing). Explain that today they will start to market their products. Marketing is defined as the activities involved in transferring a company’s product and/or service from the company to the consumer (customers).

Part of marketing is advertising, the activity of attracting public attention to a product or business.

Ask students how companies advertise their products. [commercials, online presence, billboards, fliers]

Before advertising can begin, companies need to create a brand. A brand is described as the features that make a company’s goods or services distinct from other sellers. To make their brand easily recognizable, companies often create the following:

• Logo: a company’s name, trademark, or symbol, often designed for easy recognition

• Slogan: a short, unique phrase used to advertise a company or product

Instruct students to turn to Memo: Logos and Slogans (SP13), which shows examples of logos and slogans from real companies. Ask students if they can identify the associated brands/products, and use the Memo: Logos and Slo-gans Key (74) to check for accuracy.

Later in this session, VPs Marketing will lead their teams in creating their own logos and slogans as the foundation of their marketing campaigns, a se-ries of actions intended to achieve the specific goal of promoting and selling a product(s).

Raising More Capital (10 minutes)Marketing can be very expensive! Many companies spend millions of dollars on marketing and advertising. Everything from space in a magazine or a time

memo: logos and slogans(sp13)

13

Companies often use logos and slogans to help customers easily recognize the company’s brand or product. How many of these companies/products can you identify from the logos and slogans below?

Memo: Logos and Slogans

1.____________________ 2.____________________ 3.____________________

4.____________________ 5.____________________ 6.____________________

7.____________________ 8.____________________ 9.____________________

10. “Just do it.” _______________________________

11. “Melts in your mouth, not in your hand.” _______________________________

12. “They’re grrrreat.” _______________________________


12 Teacher Manual

Finance

A B

CD

Design

Sales Marketing

Manufacturing


Teacher Manual 71


slot for a television commercial costs money. Not only do companies pay for a place to advertise, they also pay for the supplies they need to create the advertisement.


Each company will need to purchase a Marketing Package from BizMart for $10BB and will need a total of $18-20BB to cover all marketing expenses.

Each company will pay the following expenses before earning revenue at the Sales Bazaar:

• Rent ($1BB)


• Bank loan interest ($1BB for every $10BB borrowed)

In addition, companies that do NOT have enough cash can opt to take out an additional loan from the bank (loaned in $10BB increments at a 10% interest rate) or visit the VC to sell additional shares of stock. This will be the company’s last opportunity to raise funds before the Sales Bazaar.

Read News Flash 3 (75). Important: Personalize this document before class!

Ask your students if, based upon the latest press release, they think the VC will pay more or less per share. [more because the companies have manufactured their products and customers are excited to buy them]

Since the companies are more established and about to generate revenue, the VC is now willing to pay a higher price, in the range of $15-20BB per share.

Use the Stock Pie Chart (31) to illustrate the increase in stock value.

Each company’s VP Finance should lead a discussion to determine if the com-pany needs more funding and, if necessary, choose where to get the funding (from the VC or Banker).

Instruct CEO and VP Finance from each company to visit the Banker or VC (you or a volunteer) as they are called up by company name. Each team that borrows money from the bank will need to fill out a Bank Loan Receipt (55) to document the transaction. VPs Finance should keep this receipt in their bank account with their BizBucks and shares of stock.

news flash 3(75)

Teacher Manual 75

NEWS FLASH 3


Friendship Bracelets are Hot!

Friendship bracelet industry stock prices are rising in anticipation of booming interest, but

it’s up to the companies to make the friendship bracelet industry a success!

“Friendship bracelets rock!” said Tracy Trendsetter. “I wouldn’t leave home without one!”

New companies like _______________________ and __________________________ are getting

into this new business in the hopes of building a profitable, successful business. The VP

Marketing from _____________________ said, “They’re protection from bad luck. I had one

on each arm and around one ankle. When I was out for a walk, I sprained the ankle that

I left bare!”

“I’ve never seen anything like it,” said the CEO of ________________________. “There is a huge

market out there for friendship bracelets and the buyers are ready.”

It was summed up best by the VP Manufacturing of ________________________ who said, “I

sure hope we can make enough of these things.”

Despite the optimism, potential buyers are still somewhat wary. If the quality is not good,

it could destroy the industry before it starts. One potential customer said, “I’ll buy one, but

if it falls apart, I’ll never buy another.”

NEWSFLASH!

(BizWorld company name) (BizWorld company name)

(BizWorld company name)



Teaching TipAdd some excitement to the news flash by running it in your school’s newspaper or creating a mock news flash online.

72 Teacher Manual



Instruct VPs Finance to lead their team members in recording these financial transactions on their own Company Ledger (SP14-15).

Creating the Campaign (20 minutes)Display the BizMart Price List (39).

Instruct VPs Marketing from each company to visit BizMart to purchase a Marketing Package ($10 BB).

Instruct VPs Marketing to lead their team members in recording these financial transactions on their own Company Ledger (SP14-15).

Each company should now use the remaining time to work on creating the components of their marketing campaign.

Instruct the companies to turn to Creating a Marketing Campaign (CP9). Each marketing campaign will include:

• Company logo and slogan

• Print advertisement (poster)

• Commercial (30-60 second)

Each company should focus on developing a logo and slogan today, as well as its print advertisement. Companies will have time to create their commer-cials during Session Eleven. Each company will present its campaign to the shoppers at the Sales Bazaar before it begins selling and should be conscious of the message it wants to convey to its customers.

Companies should be encouraged to check their spelling and grammar. It is important to have error-free advertisements.

Some companies may choose to split up their employees to work on separate parts of the campaign, or they may all work together on the entire campaign. To increase efficiency, it is recommended that students discuss their commer-cial ideas while working on their posters.


Teaching TipIf students would like to have business cards, make them available for pur-chase at BizMart. See the online sup-port tools at www.bizworld.org for a business card template.

Teaching TipIf time and resources allow, offer your students the opportunity to ex-pand their marketing campaigns. All associated costs for additional marketing opportunities should be added to the BizMart Price List (39). Sample Activities:• Use the computer to create fliers

for your product. Email the fliers to other teachers and ask the teachers to hang the fliers in their classrooms.

• Draft your commercial and perform it as a “radio announcement” over the intercom system at the school.

• Record commercials and post them to a website where potential shoppers at the Sales Bazaar can view them.

• Create a wiki or Web page for your brand.

• Create a Twitter board to keep shoppers updated on the status of your business. Each message should be 140 characters or less. Sample message: @FriendshipFruits is excited for Sales Bazaar on Thursday!

Teacher Manual 73




• Deposit from bank loan

• Withdrawal from purchasing Marketing Package

VPs Finance will place a check mark in the “Reconciled” column of each team member’s Company Ledger (SP14-15).



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74 Teacher Manual

13

Companies often use logos and slogans to help customers easily recognize the company’s brand or product. How many of these companies/products can you identify from the logos and slogans below?

Memo: Logos and Slogans

1.____________________ 2.____________________ 3.____________________

4.____________________ 5.____________________ 6.____________________

7.____________________ 8.____________________ 9.____________________

10. “Just do it.” _______________________________

11. “Melts in your mouth, not in your hand.” _______________________________

12. “They’re grrrreat.” _______________________________

MEMO: LOGOS AND SLOGANS KEY

Disney Twitter Pringles

Starbucks Apple Hello Kitty

Taco Bell Superman Facebook

Nike

M&Ms

Frosted Flakes

Teacher Manual 75

NEWS FLASH 3


Friendship Bracelets are Hot!

Friendship bracelet industry stock prices are rising in anticipation of booming interest, but

it’s up to the companies to make the friendship bracelet industry a success!

“Friendship bracelets rock!” said Tracy Trendsetter. “I wouldn’t leave home without one!”

New companies like _______________________ and __________________________ are getting

into this new business in the hopes of building a profitable, successful business. The VP

Marketing from _____________________ said, “They’re protection from bad luck. I had one

on each arm and around one ankle. When I was out for a walk, I sprained the ankle that

I left bare!”

“I’ve never seen anything like it,” said the CEO of ________________________. “There is a huge

market out there for friendship bracelets and the buyers are ready.”

It was summed up best by the VP Manufacturing of ________________________ who said, “I

sure hope we can make enough of these things.”

Despite the optimism, potential buyers are still somewhat wary. If the quality is not good,

it could destroy the industry before it starts. One potential customer said, “I’ll buy one, but

if it falls apart, I’ll never buy another.”

NEWSFLASH!

(BizWorld company name) (BizWorld company name)




LESSON PLAN

76 Teacher Manual

Finance

Design

Sales Marketing

ManufacturingCMARKETINGSession Eleven: Promoting Your Product

Guiding Question: What is the most effective way to spread the

word about our product?

Objectives• To create a marketing campaign for a company/product

• To create an effective and persuasive commercial

Creating Commercials (30 minutes)• Review the marketing stage of the entrepreneurial cycle

• Companies create and practice their 30-60 second commercial

Finance Worksheet C (15 minutes)• VPs Finance lead their teams in using the Company Ledger (SP14-15) to complete

Finance Worksheet C (SP18)


Sales Bazaar Worksheet (5 minutes)• VPs Finance fill in line 52b of the Sales Bazaar Worksheet (CP10)

Homework


SKILLS*



MATERIALS AND RESOURCES

Teacher Manual 77

VOCABULARY

CSession Eleven: Promoting Your Product




• Collect bank loan interest ($1BB per $10BB borrowed)

• Interest is paid on any loans taken out in Sessions Seven and Ten

• Review Session Eleven




• Create a persuasive marketing campaign for a product

Math


You will need:


• Sample Finance Worksheet C (80)

Students will need:


º Creating a Marketing Campaign (CP9)

º Sales Bazaar Worksheet (CP10)



º Finance Worksheet C (SP18)

No vocabulary for this session.

78 Teacher Manual

C CSession Eleven: Promoting Your Product

Creating Commercials (30 minutes)Show students the Entrepreneurial Cycle (12) and review the definition of marketing. Review the requirements of their marketing campaign, and explain that they will have the opportunity to plan and practice their commercials today.

Companies use various techniques in commercials to communicate their mes-sage. Some commercials simply show off the features of a product. Others use humor or tell a story to get shoppers’ attention.

Remind students to keep this in mind as they work to develop a short (30-60 second) commercial that will tie into the message on their poster. This can be a TV or radio style commercial, skit, or song/jingle that will be performed live.

Remind students that each company will present its commercial to shoppers before it begins selling. As they practice their commercials, companies should use Creating a Marketing Campaign (CP9) to revise their skits.

Finance Worksheet C (15 minutes)It is now time to collect the following:



• Bank loan interest ($1BB per $10BB borrowed)

Instruct the VPs Finance to prepare rent, salaries, and bank loan interest (if applicable) for collection and lead their teams in recording these financial transactions on their own Company Ledgers (SP14-15).

Instruct students to turn to Finance Worksheet C (SP18) to summarize all financial transactions for Part C: Marketing.

Use Sample Finance Worksheet C (80) to guide students in completing their own copy. Once finished, VPs Finance will count their company’s BizBucks ($BB) and reconcile with the total cash on hand.

Instruct VPs Finance to initial the bottom of each of their team member’s Finance Worksheet C (SP18) to confirm that it has been reconciled with the company’s bank account.

Teaching TipPull each company aside during this time period to show you its commer-cial before the Sales Bazaar. If you have extra time, show your class ex-amples of real commercials that com-municate a message effectively.

IMPORTANT NOTE!Students pay interest on any bank loan borrowed. If they took out a loan in Session Seven, this will be their sec-ond interest payment. If they took out a loan in Session Ten, this will be their first interest payment. Bank loan inter-est is paid on Finance Worksheet B, C, and the Income Statement.

Teaching TipIf a company does not have enough cash to pay its expenses, encourage team members to solve the problem independently.

If needed, potential options are:

• take a bank loan at 20% interest

• borrow money from another com-pany

• sell inventory to another company

Teacher Manual 79

CSession Eleven: Promoting Your Product

Notes for Finance Worksheet C (SP18):

• Line 37 – Confirm shares of stock on hand

• Line 38 – Refer to Line 34, Finance Worksheet B (SP17)

• Line 47 – Interest is collected again as the loan has not been repaid (rate is 10% or $1BB per $10BB borrowed)

Sales Bazaar Worksheet (5 minutes)Instruct VPs Finance to turn to the Sales Bazaar Worksheet (CP10) in the Company Packet (CP) and fill in line 52b, “Total BizBucks BEFORE the Sales Bazaar.” This number should be the same as line 51 on Finance Worksheet C (SP18).


sales bazaar worksheet(cp10)

10

Today you will have the opportunity to sell your products at a Sales Bazaar. How much money do you expect to make?

(Estimate of total revenue from Pricing Worksheet)

Before we begin setting up your storefronts, you will need to count and record your current Cash on Hand. Write this number on line 52b, the “Total BizBucks BEFORE the Sales Bazaar” line below. Double check this count and confirm it with your company’s VP Finance.

52a. Total BizBucks AFTER the Sales Bazaar:

52b. Total BizBucks BEFORE the Sales Bazaar:

52. Total revenue from the Sales Bazaar:

Sales Bazaar Worksheet

-

=

finance worksheet c(sp18)

18

Finance Worksheet(Part C, Sessions 10-11) C

Company Stock

35. How many shares of stock did you have at the end of Part B? ______________



38. How many BizBucks did you have at the end of Part B? ______________


40. Did you borrow additional BizBucks from the bank? If yes, how many? +______________



43. Total BizBucks you received during Part C (Cash In)....................................................................=

44. How many BizBucks did you spend on the Marketing Package? ______________






50. Total BizBucks you spent during Part C (Cash Out)......................................................................=



Cash In (Deposits)



Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:


(Line 20, Finance Worksheet B)


(poster board)

80 Teacher Manual

18

Finance Worksheet(Part C, Sessions 10-11) C

Company Stock

35. How many shares of stock did you have at the end of Part B? ______________



38. How many BizBucks did you have at the end of Part B? ______________


40. Did you borrow additional BizBucks from the bank? If yes, how many? +______________



43. Total BizBucks you received during Part C (Cash In)....................................................................=

44. How many BizBucks did you spend on the Marketing Package? ______________






50. Total BizBucks you spent during Part C (Cash Out)......................................................................=



Cash In (Deposits)



Shares on Hand:

Total Cash In:

Total Cash Out:

Cash on Hand:




(poster board)

SAMPLE FINANCE WORKSHEET C

81

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818000

26

JD

61100

18

10

8

Teacher Manual 81

LESSON PLAN

DFinance

Design

Marketing

Manufacturing

Sales

Guiding Question: How can we make the most revenue?

Objectives• To develop an effective sales pitch

• To sell all inventory and get the highest price for their products

• To generate the highest revenue

Sales and Customer Service (10 minutes)• Explain/discuss the sales stage of the Entrepreneurial Cycle

• Discuss what good customer service looks like for the Sales Bazaar

Set Up Sales Bazaar (15 minutes)• Arrange furniture and products to make storefronts for the Sales Bazaar

• Companies rehearse their commercials

Preparing the Shoppers (5 minutes)• Explain BizWorld and the Sales Bazaar to shoppers

Sales Bazaar (15 minutes)• Companies present their commercials to shoppers

• Shopping begins!

Reconciling Finances (5 minutes)• VPs Finance complete Sales Bazaar Worksheet (CP10)

• VPs Finance reconcile each team member’s Company Ledger (SP14-15)

Homework


LESSON PLAN

SALESSession Twelve: Sell! Sell! Sell!

82 Teacher Manual



VOCABULARY


D


Session Twelve: Sell! Sell! Sell!

• Give each shopper BizBucks to spend (see Teaching Tip on page 84 for details)

• Make sure each company has filled in line 52b of the Sales Bazaar Worksheet (CP10) BEFORE starting the Sales Bazaar

• Review Session Twelve

• Invite parents, administrators, or community members to be shoppers at the Sales Bazaar

• Arrange for/confirm that another class of stu-dents (shoppers) will arrive outside the classroom 15 minutes after Session Twelve begins

• Pre-sort money for each shopper

Sales


• Participate actively in team and class discussion


• Make a formal presentation to an audience

• Persuade others to shop at your store

Math


You will need:


• Supplies to decorate tables for the Sales Bazaar (optional)

Students will need:


º Sales Bazaar Worksheet (CP10)



Teacher Manual 83

DD Session Twelve: Sell! Sell! Sell!

Sales and Customer Service (10 minutes)Display the Entrepreneurial Cycle (12) to show students what stage of the cy-cle they are beginning today. Discuss the concept of sales, the act of selling a product/service in exchange for money.

During the Sales Bazaar, companies should aim to do the following:

• Sell as many products as they can

• Sell products at a high price

• Provide excellent customer service

Sample Script

What do you think good customer service means? [being nice to cus-tomers, saying “thank you for shopping with us,” shaking hands, help-ing customers quickly]

Have you ever received good customer service? How did it affect your shopping experience? [good customer service makes you want to buy more/shop at that store more often and recommend that store to others]

Have you ever had a negative experience with a store employee? If so, how did that affect your shopping experience? [a bad experience may lead to a customer buying less or leaving before making a purchase]

Remind students that the shoppers will be arriving soon. When they visit the storefronts, employees should:

• Be polite

• Help shoppers in a timely manner

• Answer any questions about their product/company

• Help customers to put on their bracelets, if necessary

Set Up Sales Bazaar (15 minutes)Instruct VPs Sales to lead their companies in setting up for the Sales Bazaar. Arrange desks/tables to create storefronts for the Sales Bazaar. It is recom-mended that you set up the tables/desks around the perimeter of the room. This will provide an open space for the commercial performances and shopping.

Companies should also arrange products in an organized way, making sure it is easy for the customer to see the price of a product. Remind students to use masking tape to display their prices. One way to do this is to write a price on a piece of masking tape and stick it on the table in front of the products.

Encourage companies to use this time for a final commercial rehearsal.


12 Teacher Manual

Finance

A B

CD

Design

Sales Marketing

Manufacturing


Teaching TipIf you would like, make decorations (e.g., tablecloths, display boxes, jew-elry boxes) available for purchase at BizMart. During the set up time, al-low VPs Sales to purchase these items and lead their teams in recording this purchase on their Company Ledgers (SP14-15).

Companies may need to adjust prod-uct prices if they spend additional BizBucks!

84 Teacher Manual

DSession Twelve: Sell! Sell! Sell!

Preparing the Shoppers (5 minutes)Address the shoppers outside of the room while your students finish setting up for the Sales Bazaar. Inform them that your students are participating in a program called BizWorld and summarize what the students have been work-ing on.

The shoppers will begin by watching each company’s commercial and then have approximately 15 minutes to shop. As a smart shopper, they should be instructed to look for the following:

• Impact of the marketing campaign

• Product quality

• Pricing

• Product design

• Customer service

Give each shopper approximately $10-12BB to spend. Instruct them to spend the money like it is their own or real money. They should make wise decisions and look at all the products before buying anything. Ask that they do not fold or crumple up the BizBucks and return any unused cash to you as they leave.

As the shoppers enter the room, instruct them to sit on the floor or stand around the perimeter of the room.

Sales Bazaar (15 minutes)Direct each team to present its commercial. Once all teams have performed, announce: “The Sales Bazaar is now open!”

Reconciling Finances (5 minutes)Instruct VPs Finance to count the total amount of BizBucks they have (now that they have sold their bracelets). Once counted, the VPs Finance should com-plete questions 52a and 52 on the Sales Bazaar Worksheet (CP10).

The answer on line 52 tells students the total amount of revenue they earned at the Sales Bazaar.

VPs Finance will lead their teams in reconciling all financial transactions from this session with the money in their company’s bank account.

Teaching TipHow much money should I give my shoppers? If the number of shoppers and the number of sellers is about equal, give each shopper $10 - 12BB. If there are fewer shoppers than sellers, give each shopper more BizBucks. If there are more shoppers, give fewer BizBucks.

Teaching TipKeep an eye out for the last com-pany with products remaining while shoppers still have BizBucks. Does it takeadvantage of the scarcity of its products by raising its prices?

Teacher Manual 85

DSession Twelve: Sell! Sell! Sell!


• Deposit from Sales Bazaar revenue (line 52)

• Withdrawal from purchasing decorations (optional)

VPs Finance will place a check mark in the “Reconciled” column on each team member’s Company Ledger (SP14-15).



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86 Teacher Manual

LESSON PLAN

DD Finance

Design

Marketing

Manufacturing

Sales

SALESSession Thirteen: Valuing Your Company

Guiding Question: Was our company profitable? Why or why not?

Objectives• To calculate the value of each company

• To calculate the combined value of each company’s employee-owned shares of stock

• To recognize student and group achievements

• To re-assess students’ knowledge as it relates to business and the business world

Income Statement (15 minutes)• Explain/discuss the purpose of an income statement

• Companies pay rent, salaries, loan interest, and re-pay bank loans

• Companies complete Income Statement (SP19) to determine their overall profit or loss

Company Performance Summary (10 minutes)• Discuss which factors will be used to value the companies

• VPs Finance will aid teacher in determining value of each company

Performance Discussion and Review (15 minutes)• Discuss the reasons for success (or lack there of) for each company

Post-Assessment (10 minutes)• Students complete online Post-Assessment

• Distribute certificates to individuals and teams

Homework


Teacher Manual 87



VOCABULARY



DDD Session Thirteen: Valuing Your Company

• Review Session Thirteen

• Prepare a Certificate of Completion (97) for each student (for additional certificates see the online support tools at www.bizworld.org)

• Confirm computer access for online Post- Assessment




• Collect loan interest ($1BB per $10BB borrowed)

• Collect balance of all bank loans

• Sign the certificates and awards before photocopying

You will need:

• Sample Income Statement (93)

• Sample Company Performance Summary (95)

• Company Performance Summary (96)

• Certificate of Completion (97)

• Teacher Evaluation (98-99)

Students will need:



º Income Statement (SP19)

• Post-Assessment (Online)


• Participate actively in team and class discussion


• Reflect and make connections between past decisions and their resulting success

Math


Assets

Balance sheet

Equity

Income statement

Liabilities

88 Teacher Manual

DSession Thirteen: Valuing Your Company

Income Statement (15 minutes)Explain to students that since the Sales Bazaar is over, we can now determine whether each company made a profit and how much it made.

Instruct students to complete the Sales Bazaar Worksheet (CP10) in the Com-pany Packet (CP) if they have not already done so.

To review, have students explain the difference between the revenue they earned at the Sales Bazaar and their overall profit/loss. To guide the discus-sion, use the sample script below.

Sample ScriptWhat do you call the money earned from selling a product? [reve-nue]

Does your company get to keep all the money it made at the Sales Bazaar? [no – you must pay your final expenses]

What does revenue minus expenses equal? [profit]

To determine their company’s profit, each student will complete an income statement. An income statement is a financial document that shows a com-pany’s revenue, expenses, and profit (or loss) over a period of time, in this case, since we started BizWorld. An income statement is like a big subtraction equation. It shows how much money your company earned in sales (revenue), and subtracts the amount of money your company spent (expenses). The mon-ey left over is your profit (or loss).

Before determining each company’s profit, companies must pay the following for the last time:



• Interest on bank loans ($1BB per $10 BB borrowed)

• The balance of all bank loans (Line 22, Finance Worksheet B plus Line 40, Finance Worksheet C)

Instruct VPs Finance to prepare salaries, rent, bank loan interest (if applica-ble), and the balance of any bank loan(s) for collection and lead their teams in recording these financial transactions on their Company Ledgers (SP14-15).

income statement(sp19)

19

Income Statement

Revenue (Sales)

52. Total revenue?...............................................................................................................................................=

53. What were your total Business 101 and Part A expenses? ______________

54. What were your total Part B expenses? +______________

55. What were your total Part C expenses? +______________

56. What were your total Part D expenses? +______________

57. How many BizBucks did you spend on loan repayment? +______________

58. Total expenses (withdrawals)...................................................................................................................=

59. What is your company’s profit (or loss)?.............................................................................................=

60. How many BizBucks does your company currently have on hand?.........................................=Count your BizBucks to reconcile; your current cash on hand is:($BB at end of Part C + revenue) - (Part D expenses + bank loan repayment)

Cash on Hand

Total Revenue - Total Expenses = Profit (or Loss)

Expenses (Withdrawals)

An income statement is a financial document that shows a company’s revenue, expenses, and profit (or loss) over a period of time. In this case, it is the period of time since you started BizWorld.


(How many BizBucks did you receive during the Sales Bazaar? Line 52, Sales Bazaar Worksheet)

Total Revenue:

Total Expenses:

Profit (or Loss):

Cash on Hand:



(Line 50, Finance Worksheet C)

(Line 22, Finance Worksheet B plus Line 40, Finance Worksheet C)

(Line 51, Finance Worksheet C plus Line 52) - (Line 56 plus Line 57)

56a. How many BizBucks did you spend on salaries? _______________

56b. How many BizBucks did you spend on rent? +_______________

56c. How many BizBucks did you spend on interest? +_______________

56d. Other cash out (Description:____________________) +_______________

56e. Other cash out (Description:____________________) +_______________

56f. Total BizBucks you spent during Part D........................=

sales bazaar worksheet(cp10)

10

Today you will have the opportunity to sell your products at a Sales Bazaar. How much money do you expect to make?

(Estimate of total revenue from Pricing Worksheet)

Before we begin setting up your storefronts, you will need to count and record your current Cash on Hand. Write this number on line 52b, the “Total BizBucks BEFORE the Sales Bazaar” line below. Double check this count and confirm it with your company’s VP Finance.

52a. Total BizBucks AFTER the Sales Bazaar:

52b. Total BizBucks BEFORE the Sales Bazaar:

52. Total revenue from the Sales Bazaar:

Sales Bazaar Worksheet

-

=

Teacher Manual 89

DEach employee will complete the Income Statement (SP19) to determine their company’s profitability. Use the Sample Income Statement (93) to guide stu-dents in completing the income statement for their companies.Notes for Income Statement (SP19):

• Line 52 – Refer to line 52 on the Sales Bazaar Worksheet (CP10)

• Line 56 – This is the total amount of expenses from Part D (rent, salaries, and loan interest)

• Line 57 – This is the total amount of bank loans (line 22 Finance Work-sheet B plus line 40 Finance Worksheet C)

• Line 60 – Instruct students to count their current BizBucks to know their cash on hand

Instruct VPs Finance to confirm that everyone on their teams has calculated the profit (line 59) and cash on hand (line 60).

Balance Sheet (Suggested, 10 minutes)A balance sheet is a financial document that shows what a company owns (assets) and what it owes (liabilities) at a specific moment in time, usually at the close of a financial period.

• Assets are items a business owns that can be exchanged for cash

• Liabilities are all the money a business owes

The third part of the balance sheet equation is equity. Equity is money that is invested in the company plus profit. In BizWorld, it is the total of the following:

• Founder’s money ($1BB)

• Money from signed Parent/Guardian Letters

• Total money from the VC

• Company profit

• Bank loans

The goal of the balance sheet is for your assets to equal your liabilities plus your equity. This is why it’s called a balance sheet. The equation looks like this:

Assets = Liabilities + Equity

Instruct each student to complete the Balance Sheet (SP20). Use the Sample Balance Sheet (94) to guide students in completing the balance sheets for their companies.

Session Thirteen: Valuing Your Company

IMPORTANT NOTE!Unless the company had zero cash on hand going into the Sales Bazaar, the cash on hand amount will be dif-ferent than the profit. This is because cash on hand includes money that was in each company’s bank ac-count before the Sales Bazaar. Profit is simply the revenue minus expenses for the whole BizWorld program.

90 Teacher Manual

D DSession Thirteen: Valuing Your Company

Notes for the Balance Sheet (SP20):

• Line 61 – Use line 60 on the Income Statement or have students count the BizBucks in the company’s account

• Line 63 – This value is zero because the Sales Bazaar is now closed and another sale is NOT scheduled

• Line 66 – The value is zero because all bank loans have been repaid

If your balance sheet balances, you know it is correct.

Company Performance Summary (10 minutes)Now that we have all the financial facts about each company from the In-come Statement (SP19) and, if applicable, the Balance Sheet (SP20), we can figure out the value of each company.

Each company’s value will be based upon an evaluation of profit, revenue, and cash on hand. These numbers will be used to determine the company with the highest stock value (per share), and ultimately the company with the highest team value.

Display the Company Performance Summary (96).

Call on VP Finance from each company to help you fill in column numbers 1–4 of the worksheet and review the results.

• Column 1: Profit (or Loss) – refer to line 59 on the Income Statement (SP19)

• Column 2: 10X Profit (or Loss) – profitability is the best indicator of suc-cess; therefore, it is often accompanied by a multiplier (Example, 10X)

• Column 3: Revenue (Sales) – refer to line 52 on the Sales Bazaar Work-sheet (CP10) or the Income Statement (SP19)

• Column 4: Cash on Hand – refer to line 60 on the Income Statement (SP19) or have students count their BizBucks

• Column 5: Company Value – use the highest number from columns 2-4 Profit, revenue, and cash on hand are all good indicators of company success. In real life, a company would have more than one chance to be successful. However, in BizWorld, each company only gets one chance. Therefore, to make it a more even playing field, each company will use the highest value (in columns 2, 3, or 4) to represent its company value (column 5)

• Column 6: Price Per Share – divide the company value (column 5) by 10 (total shares of stock in each company)

• Column 7: Shares of Stock on Hand – the number of shares each compa-ny still has; refer to line 37 on Finance Worksheet C (SP18)

balance sheet(sp20)

20

Balance Sheet

Assets (what you own) Liabilities (what you owe)

Equity (investments + profit)

A balance sheet is a financial document that shows what your company owns (assets) and what it owes (liabilities) at a specific moment in time, usually at the close of a financial period. NOTE: Because companies have already repaid their bank loans, they should not have any debt.

Assets = Liabilities + Equity65. Accounts Payable ______________

(This is how much you owe, NOT including bank loans. This value is most likely ZERO.)

66. Debt +______________ (This value is ZERO because you have already paid back your bank loan.)

67. What is the value of your company’s total liabilities? =

68. How many BizBucks did you have/receive to start your company? ______________ (Line 4, Finance Worksheet A plus any BizBucks received from signed Parent/Guardian Letters)

69. How many BizBucks did you receive from the VC? +______________ (Line 5, Finance Worksheet A plus Line 23, Finance Worksheet B plus Line 39, Finance Worksheet C)

70. What was your company’s profit? +______________ (Line 59, Income Statement)

71. How much did your company borrow from the bank? +______________ (Line 22, Finance Worksheet B plus Line 40, Finance Worksheet C)

72. What is the value of your company’s total assets?.......=

61. Cash on Hand ______________ (How many BizBucks do you have on hand? Line 60, Income Statement)

62. Accounts Receivable +______________ (This is how much you are owed and still need to collect. This value is ZERO. You have collected all the money that is owed to your company.)

63. Inventory +______________ (This is the value of all the goods you did not sell but could sell later. This value is ZERO because the Sales Bazaar is closed and another sale is NOT scheduled.)


Total Assets:

Total Liabilities:

Total Equity:

Total Assets: Total Liabilities + Total Equity:=If these numbers are equal, you have completed your company’s balance sheet correctly.

Teaching TipFor an example, use the Sample Com-pany Performance Summary (95).

Teacher Manual 91


• Column 8: Team Value – the number of shares of stock on hand (column 7) multiplied by the price per share (column 6)

The company with the highest team value may be recognized as the winning team!

Performance Discussion and Review (15 minutes)Discuss with your class the results of the Company Performance Summary (96). Suggested discussion topics are listed below:

• What factors ultimately influenced each company’s team value? [how many products it sold, how much it spent on supplies and other expenses, how many shares of stock it sold, whether the company took out a bank loan]

• Did any companies have a high company value but sold a lot of their stock? [answers will vary]

• Did any companies have high sales (revenue) but low profits due to high expenses? [answers will vary]

• What makes a successful business? [high revenue, large profit, company with little waste, company that got along well, company that worked together]

• What did you and/or your company do well during BizWorld? [worked well as a team, made quality products, sold a lot, communicated clearly with each other, kept good track of their finances]

• What job would you want if you were to participate in BizWorld again? [Answers will vary, but ask students to explain why they would want an-other job, or even if they would create a job that doesn’t exist right now in BizWorld.]

• What would you have the company do differently if you were to partici-pate in BizWorld again? [spend less on string, decide on an efficient way to manufacture its bracelets, reach decisions faster as team, charge more/less for its product]

• What advice would you give to future BizWorld students? [keep track of your money, work quickly, it’s important to get along with others]

Post-Assessment (10 minutes) Ask students if they remember the Pre-Assessment they took at the start of BizWorld. Explain that today they will take a Post-Assessment to show what they learned during the program.

Have students go to www.bizworld.org to complete the Post-Assessment and the student evaluation questions that follow it.

Teaching TipTo reinforce the idea that the VC owns a percentage of a company when they purchase stock, have stu-dents “pay back” the percentage of profit that belongs to the VC.

For example:• The VC owns four shares of

stock (40%) of a company• The company made a profit of

$40BB• Therefore, the company pays

the VC $16BB (40% of $40BB = $16BB)

Teaching TipTo extend this discussion and engage students in critically thinking about their BizWorld experience, have them work in teams to provide advice to future BizWorld students. Students could create a PowerPoint presen-tation, picture book, pamphlet, or checklists of the “dos” and “don’ts” of starting a business.

92 Teacher Manual


Once the students’ Post-Assessment answers have been submitted online, The BizWorld Foundation will email your students’ percent change in scores from the beginning and end of the BizWorld program.

To thank you for taking the time to provide this valuable data from your classroom, The BizWorld Foundation will send you free string for your next BizWorld class.

As students complete the Post-Assessment, personalize a Certificate of Com-pletion (97) for each student. Additional certificates can be found in the on-line support tools at www.bizworld.org.

Teacher Wrap-Up Instructions (Post-BizWorld)Thank you for taking the time to introduce the basics of entrepreneurship, busi-ness, and finance to your students. The BizWorld Foundation strives to make the BizWorld program the best it can be and relies on feedback from teachers to help improve The BizWorld Foundation programs.

Complete the Teacher Evaluation (98-99) online (www.bizworld.org) or send it to The BizWorld Foundation via email ([email protected]), fax (415-863-2072), or mail to the address below:

The BizWorld Foundation311 California Street, Suite 750

San Francisco, CA 94104

Keep in contact with The BizWorld Foundation through Facebook (www.face-book.com/TheBizWorldFoundation), Twitter (@bizworldorg), and our blog (blog.bizworld.org). We love to hear from BizWorld teachers as they share their stories!

Teacher Manual 93

19

Income Statement

Revenue (Sales)

52. Total revenue?...............................................................................................................................................=

53. What were your total Business 101 and Part A expenses? ______________

54. What were your total Part B expenses? +______________

55. What were your total Part C expenses? +______________

56. What were your total Part D expenses? +______________

57. How many BizBucks did you spend on loan repayment? +______________

58. Total expenses (withdrawals)...................................................................................................................=

59. What is your company’s profit (or loss)?.............................................................................................=

60. How many BizBucks does your company currently have on hand?.........................................=Count your BizBucks to reconcile; your current cash on hand is:($BB at end of Part C + revenue) - (Part D expenses + bank loan repayment)

Cash on Hand

Total Revenue - Total Expenses = Profit (or Loss)

Expenses (Withdrawals)

An income statement is a financial document that shows a company’s revenue, expenses, and profit (or loss) over a period of time. In this case, it is the period of time since you started BizWorld.


(How many BizBucks did you receive during the Sales Bazaar? Line 52, Sales Bazaar Worksheet)

Total Revenue:

Total Expenses:

Profit (or Loss):

Cash on Hand:



(Line 50, Finance Worksheet C)

(Line 22, Finance Worksheet B plus Line 40, Finance Worksheet C)

(Line 51, Finance Worksheet C plus Line 52) - (Line 56 plus Line 57)

56a. How many BizBucks did you spend on salaries? _______________

56b. How many BizBucks did you spend on rent? +_______________

56c. How many BizBucks did you spend on interest? +_______________

56d. Other cash out (Description:____________________) +_______________

56e. Other cash out (Description:____________________) +_______________

56f. Total BizBucks you spent during Part D........................=

SAMPLE INCOME STATEMENT

1612

188

100

6

100

1

8

64

36

10

90

94 Teacher Manual

20

Balance Sheet

Assets (what you own) Liabilities (what you owe)

Equity (investments + profit)

A balance sheet is a financial document that shows what your company owns (assets) and what it owes (liabilities) at a specific moment in time, usually at the close of a financial period. NOTE: Because companies have already repaid their bank loans, they should not have any debt.

Assets = Liabilities + Equity65. Accounts Payable ______________

(This is how much you owe, NOT including bank loans. This value is most likely ZERO.)

66. Debt +______________ (This value is ZERO because you have already paid back your bank loan.)

67. What is the value of your company’s total liabilities? =

68. How many BizBucks did you have/receive to start your company? ______________ (Line 4, Finance Worksheet A plus any BizBucks received from signed Parent/Guardian Letters)

69. How many BizBucks did you receive from the VC? +______________ (Line 5, Finance Worksheet A plus Line 23, Finance Worksheet B plus Line 39, Finance Worksheet C)

70. What was your company’s profit? +______________ (Line 59, Income Statement)

71. How much did your company borrow from the bank? +______________ (Line 22, Finance Worksheet B plus Line 40, Finance Worksheet C)


61. Cash on Hand ______________ (How many BizBucks do you have on hand? Line 60, Income Statement)

62. Accounts Receivable +______________ (This is how much you are owed and still need to collect. This value is ZERO. You have collected all the money that is owed to your company.)

63. Inventory +______________ (This is the value of all the goods you did not sell but could sell later. This value is ZERO because the Sales Bazaar is closed and another sale is NOT scheduled.)


Total Assets:

Total Liabilities:

Total Equity:

Total Assets: Total Liabilities + Total Equity:=If these numbers are equal, you have completed your company’s balance sheet correctly.

SAMPLE BALANCE SHEET

90

90

0

0

90

0

0

0

90

90

6

38

36

10

Teacher Manual 95

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96 Teacher Manual

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Teacher Manual 97

Cer

tific

ate o

f C

om

pletion

This certi

fies th

at

___________________________________________

has successfully com

ple

ted BizW

orld

on th

is

________ D

ay o

f _

_________________ , _

_______

and has a basic understa

nding of th

e world

of business.

The c

ourse represents

an overview of design, m

anufactu

ring,

marketi

ng, and finance. I

hope th

at

this tr

aining will serve

as a

foundati

on f

rom

which to

le

arn m

ath

em

ati

cs,

econom

ics, Engli

sh language a

rts

, and s

ocial stu

dies.

I wish you all th

e best

in your futu

re business pursuits

.

_______________________________ _______________________________

Tim

Draper

, Founder

of B

izW

orld

Biz

World

Tea

cher

98 Teacher Manual

We appreciate you taking time to complete this teacher evaluation! We use feedback from teachers like you to improve our program, create new resources, and learn about our students and teachers. Thank you!

Name ________________________________________________________________ State _____________________________________

Email Address_______________________________________________________ Phone ____________________________________

School Name ______________________________________________________ Position Title _____________________________

Subject _____________________________________________________________ Grade ____________________________________

Have you taught a BizWorld program before? YES NOIf yes, how many times have you taught in the past? Which programs (BizWorld, BizMovie, and/or BizWiz)?

Have you previously taught entrepreneurship, business, or finance? YES NO

If not, was the information in BizWorld presented in a clear enough manner to make teaching the program man-ageable? Explain any deficiencies.

BizWorld in Your Classroom • What motivated you to teach BizWorld to your students?

• Describe your teaching of the BizWorld program (e.g., what subject matter you aligned to, over what time span the program was taught, if/how you involved your local community).

• What benefits did you see from using the program in your classroom?

TEACHER EVALUATION

Teacher Manual 99

• What changes would most improve the BizWorld program? (e.g., lesson plan changes, activity suggestions)

Your Future With BizWorld• Do you intend to teach BizWorld again next year? If YES, what are your plans (e.g., to teach as a

grade level, to team up with other teachers in your school/district)? If NO, why not?

• Would you be interested in sharing BizWorld with your colleagues? If YES, how can we help facilitate this?

• Would you be interested in sharing your experience and presenting BizWorld to other educators? If YES, please let us know what type of presentation you would like to do (e.g., on-campus staff devel-opment, local conference).

The BizWorld ProgramPlease check the column that most closely reflects your opinion about each statement.

Strongly Agree Agree Neutral Disagree Strongly

Disagree

The program was effective in teaching business, entrepreneurship, and finance.

The program helped my students connect academic content to the real world.

The program engaged my students.

The program helped my students learn to work together to solve problems.

The program encouraged my students to think critically in order to solve problems.

If you have additional comments or suggestions, attach another sheet or email them to [email protected].

TEACHER EVALUATION (CONTINUED)

100 Teacher Manual

GLOSSARYAdvertising the activity of attracting public attention to a product or business

Assembly line a manufacturing technique where a product is assembled step-by-step by multiple individuals, each performing a specific task

Assets items a business owns that can be exchanged for cash

Balance sheet a financial document that shows what a company owns and what it owes at a specific moment in time, usually at the close of a financial period

Brand the features that make a company’s goods or services distinct from other sellers

Business a person or group of people who create and sell products and/or services in order to make money

Business plan a written document describing a business and its goals

Cash on hand money in the form of cash that a business has at a particular time

Capital money and/or other resources used to make more money

Chief Executive Officer (CEO) a person who leads the team and manages the smooth operation of the company and its employees

Debt something owed, such as money, products, or services

Deposit money put into an account

Design to plan or create something artistically

Efficient operating in a way that does not waste time, money, or effort

Entrepreneur a person who takes on the risk of beginning and operating a new business

Equity money that is invested in the company plus profit

Ethics the rules of society that help people to tell the difference between acceptable and unacceptable behavior

Expense a cost associated with operating a business

Finance the management of money and other items of value

Founder a person who starts a business

Funding money, in the form of cash, that is available for use

Income statement a financial document that shows a company’s revenue, expenses, and profit (or loss) over a period of time

Incorporate to form a company that is recognized by the government as an independent orga-nization

Interest the fee paid for borrowing money

Inventory the number of finished products on hand

Job application a form filled out by someone who wants a job, summarizing their skills and experi-ence

Job shop a manufacturing technique where one individual produces a product from start to finish

Liabilities the money a business owes

Loan a sum of money borrowed that is repaid with interest

Logo a company’s name, trademark, or symbol, often designed for easy recognition

Loss total expenses exceed total revenue; opposite of profit

Terms in bold terms are the essential vocabulary for the BizWorld program and are meant to cover the most important concepts. If you are short on time or teaching younger students, it is recommended you focus on the terms in bold as vocabulary words.

BIZWORLD VOCABULARY

Teacher Manual 101

GLOSSARY GLOSSARYManufacturing the making or producing of goods (products)

Marketing the activities involved in transferring a company’s product and/or service from the company to the consumer (customer)

Marketing campaign a series of actions intended to achieve the specific goal of promoting and selling a product(s)

Negotiate to bargain and come to an agreement with another person

Pitch a presentation made to convince someone (a VC) to invest money in a company

Pricing structure the planned selling price of products calculated to generate a desired profit

Product something made by humans, machines, or nature

Profit money made by a company, after expenses have been paid

Prototype a full-scale model of a new product or new version of an existing product

Reconcile to check for accuracy

Rent money regularly paid to use or occupy a space

Retail the price of goods, in smaller quantities, not intended for resale

Revenue money a company earns from selling a product or service

Salary money a person is paid for working

Sales the act of selling a product/service in exchange for money

Scarcity shortage of supply

Service work that someone does for another person

Slogan a short, unique phrase used to advertise a company or product

Stock pieces of ownership in a company; a piece of stock is called a “share” of stock

Stock market where stocks are bought and sold

Venture capital money received from a venture capitalist as an investment in a company

Venture Capitalist (VC) a person who invests money in new and innovative businesses

Vice President (VP) Design a person who leads the team in creating an attractive design and quality product that will appeal to customers

Vice President (VP) Finance a person who leads the team in making sure all money is accounted for and the company is making a profit

Vice President (VP) Manufacturing a person who leads the team in making the product as easily and inexpen-sively as possible

Vice President (VP) Marketing a person who leads the team in promoting the company, product, or service

Vice President (VP) Sales a person who leads the team in providing excellent customer service and selling lots of products

Wholesale the price of goods, in larger quantities, sold for the purpose of resale

Withdrawal money taken out of an account

Terms in bold terms are the essential vocabulary for the BizWorld program and are meant to cover the most important concepts. If you are short on time or teaching younger students, it is recommended you focus on the terms in bold as vocabulary words.

BIZWORLD VOCABULARY

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(415) [email protected]

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