Business Plan Basics

Curriculum Area: Social Studies - Economics and Entrepreneurship (6th Grade)

Learning Objectives:

• Understand what a business plan is and why it's important.
• Identify the key components of a simple business plan.
• Develop a basic business plan for a lemonade stand.

Standards:

• According to the National Curriculum Standards for Social Studies (NCSS), this lesson aligns with the theme of Production, Distribution, and Consumption. Students will understand economic principles and processes that are basic to entrepreneurship, including creating a business plan.

Materials Needed:

• Whiteboard and markers
• Poster paper and markers
• Sample lemonade, cups, and simple ingredients list
• Business Plan Template handouts
• Pencils and erasers

Lesson Outline:

Introduction (5 minutes)

1. Hook: Display a simple, colorful picture of a lemonade stand. Ask students: "Who here has ever set up a lemonade stand?" Discuss briefly the excitement of setting up a business.
2. Objective Preview: Explain that today, students will learn how budding entrepreneurs like themselves can use a business plan to make successful lemonade stands.

Direct Instruction (10 minutes)

1. Definition and Importance:
   • Write on the board: "What is a Business Plan?"
   • Explain: A business plan is a basic outline of a business idea and explains how it will succeed. It's like a roadmap to guide us.
   • Discuss why business plans are vital for keeping focused and making sure everything is on track.
2. Components of a Business Plan:
   • Product: What are you selling? Discuss lemonade as the primary product.
   • Target Market: Who will buy it? Define potential customers (neighbors, friends).
   • Location: Where to set up? What locations might attract more customers (e.g., local park, front yard)?
   • Pricing: How much will it cost? Discuss small and large cup prices and the reasoning behind them.
   • Marketing: How will people know? Brainstorm ideas like posters or word-of-mouth.

Guided Practice (10 minutes)

1. Group Activity:
   • Divide the class into small groups (4-5 students each).
   • Provide each group with poster paper, markers, and the Business Plan Template.
   • Task: Each group should fill out the template for their lemonade stand, crafting each component creatively.

Independent Practice (10 minutes)

1. Create and Pitch:
   • Once business plans are created, each group takes turns presenting their business plan to the class.
   • Encourage students to use persuasive language and enthusiasm to sell their lemonade stand idea.

Closure (5 minutes)

1. Review Key Points: Recap the importance of each component of a business plan.
2. Reflection: Ask students to reflect on what was challenging about creating their business plan and how it helped them organize their thoughts.
3. Real-World Connection: Discuss how all entrepreneurs start with a business plan and how they evolve over time.

Assessment:

• Formative Assessment: Evaluate each group’s business plan presentation focusing on understanding of the business plan components and creative thinking in their delivery.
• Participation: Observe and note student engagement during activities and discussions.

Differentiation:

• For students needing additional support, provide a list of potential ideas for each component (e.g., locations, marketing strategies).
• Challenge advanced students by asking them to consider potential challenges and solutions for their lemonade stand business.

By the end of the lesson, students will have a foundational understanding of how to create a simple business plan for a lemonade stand, promoting entrepreneurial thinking and economic understanding.