Grades K-2, 3-5, 6-8, 9-12
Kate McKinnon talks money with kids. Fun with financial literacy!
This is the third in a series of lessons on entrepreneurship. "Entreduction" and "Improving on the Original" help students understand what innovations are, and what it takes to get an idea off the ground. This lesson will take students through the process of calculating risks associated with starting a new business — the decisions and choices they'd have to make and how to calculate what makes something "worth" the risks.
None of your Business? It's ALL your business. In this lesson, you'll map out the basic decisions you'd have to make to start your own business. You'll weigh the risks and benefits of each decision to determine whether the trade-offs provide a strong enough incentive to get you going!
Use PBS's BizKids series learn about what it takes to start a business. What do the teenage entrepreneurs in this show have in common? How are they different? Make some notes on the skills they needed and the lessons they learned in getting started in business.
Now answer the following questions about the videos you watched.
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The first decision you need to make is whether you will be in business on your own or in partnership with someone else. Unless your teacher has assigned partners already for this activity, pick a partner or get started alone.
Use the answers to the questions in Activity One to begin mapping out your plan.
Visit the Small Business Administration section called “First Steps – How to Start a Small Business " to answer some questions about your hopes and ideas for your business.
Discuss with a partner what you need to consider, and add to the sections on Business Description, Financial Management, and Management.
Each of the questions you have considered and each idea you have written down points towards a potential risk or cost and a potential reward or benefit. People who are considering going into business for themselves must weigh the costs against the benefits to decide if their idea is worth the effort. This is called a cost/benefit analysis.
Have your students watch several of the videos or read interviews available at My Own Business.
These are real stories of people who have tried their own businesses. Focus on "Deciding on a Business" and "The Business Plan" sections to see what challenges people faced, and what they might do differently if they were starting again.
Use this "Balancing Act" activity to identify the costs and benefits you'll have to consider. Place a number value on each one to say how important it is compared to the other things you're considering on the lists. The activity will help you determine whether you are leaning in favor of or against building the business.
Now that your students have a sense of what it takes to start a business. Here are some questions that they might think about and discuss with their classmates:
If you decide to start your own business, one of the next things you’ll have to consider is whether you’ll have employees – and how to keep them happy if you do.
Have you considered all the potential costs and benefits that might be involved in starting your business? Check over your printed answers and then hand the journal activity and "Balancing Act" papers to your teacher.
Collect student work on the journal activity and "Balancing Act" activity. Look for examples of student understanding about the risks they would take and the things they would have to consider in order to structure a sound business.
Grades K-2, 3-5, 6-8, 9-12