COURSE: Foods II-- Enterprise ESSENTIAL STANDARD: 4.0 30% C2 Understand the Roadmap to Food Entrepreneurship. OBJECTIVE: 4.01 5% C2 Understand opportunity. CONTENT OUTLINE ACTIVITES Entrepreneur Characteristics Inquisitive Creative Persistent Responsible Goal-oriented Independent Self-confident Self-demanding Action-oriented Skills Communication Human relations Problem-solving Decision-making Basic business Technical Math Marketing mix Product Price Place Promotion Market segmentation Geographic Demographic Psychographic Behavioral Forms of business ownership Sole proprietorship Partnership Corporation Franchise businesses Opportunity & Demand Marketing objectives Required Roadmap Questions: Mile Marker 1 What are you passionate about? What problems have you seen through personal experience? What product or service could you create? What problem are you solving? Is there demand for your product or service? Mile Marker 2 Take a second look at your chosen opportunity. Is it viable? Does it satisfy an unmet need? Who would be willing to buy it and what price would they pay? Can you meet the market demand, if demand meets your expectations? What are the problems of taking this product or service to scale? Project Based Learning: Review the Food Entrepreneurship Project Matrix (in appendix). Select the project(s) you would like to present to your students as their assignment. Conduct phase 1 of the projects while teaching content. Draw connections between the project and content. Use required questions as discussion starters, reflective writing prompts, or homework as students complete project requirements. Use the FCCLA 5-Step Planning Process, regardless of the project you or your students select. Invite a local entrepreneur as a guest speaker. Have students generate questions before the guest speakers’ arrival. Have student research young entrepreneurs or famous entrepreneurs in foods and foods-related fields. What skills helped them to become
ESSENTIAL STANDARD: 4.0 30% C2 Understand the Roadmap to Food Entrepreneurship. OBJECTIVES: 4.02 7% C2 Understand test feasibility and accessing information. CONTENT OUTLINE ACTIVITES Financing Start-up costs Continuing costs Fixed costs Variable costs Entrepreneurial Characteristics to obtain funding (six C’s of credit). Character Capacity Capital Collateral Conditions Coverage Sales Sales forecast Contingency funds Financial Statements Cash flow statement Balance sheet Income statement Wages vs. salaries Pricing Calculating mark-up Break-even point Distribution Product Development Prototype Quality control Product standards Feasibility analysis Required Roadmap Questions: Mile Marker 3 What’s included in the test of your product/service? Where will you find materials and labor for your product/service? Can you make a prototype for your product or service? What are the total costs of making your prototype and samples (include labor)? Can you get testimonials for your product or service? Where would you go to test the feasibility of your product/service? Is there evidence or data supporting the long-term viability of your idea? Mile Marker 4 What information do you need to solve your problem? What resources are available? (i.e. newspapers, library references, internet research) What industry information do you need such as state and local regulations, target market numbers, costs of components, available suppliers, etc.? How can you effectively analyze this information and turn it into something useful to aid in your business? Project Based Learning: Conduct phase 2 of the project(s) while teaching content. Draw connections between the project and content. Use required questions as discussion starters, reflective writing prompts, or homework as students complete project requirements. Use Shark Tank clips to introduce students to evaluating feasibility. Try to find clips that feature younger contestants or a food-product. Use a
Advanced: Student successfully responded to the required questions and all of the “plus” questions. Proficient: Student Successfully responded to the required questions and many of the key “plus“ questions. Progressing: Students successfully responded to the required questions and several, basic “plus” questions. Each checklist also contains a checklist for students, groups, and teachers to mark when a student has successfully answered a question. Students should check each “S” box as a tool for self-evaluation and reflection. Groups should check each “G” box as they discuss and evaluate each other’s’ work. Ultimately, teachers should check each “T” box as the student successfully answers each question.
* Increase the advertising budget * Give your daughter money to buy a new dress * Select a cheaper long distance phone service * Remodel your building All of these decisions increase, or decrease your cost of operations affecting what is left as profit. When deciding how to price the goods or services to be sold, the owner must take into consideration the costs of all decisions made. Some decisions will result in higher sales which will more than make up for increased costs. It is thought that appropriate advertising will do this. Or if you pay your employees more they may be willing to work harder and increase sales. However, nothing is really sure about these decisions and their effect on profits. So business owners often decide to use a percentage of the product costs in determining their selling prices. The percentage is based on distributing the costs of running the business (overhead) and profits in an equal manner to all items sold, based on the product costs. This is called markup. Think of markup as the share of the consumer's price that is necessary to run the business, plus what is left over as return on the owner's investment. The markup on all the products sold, added together, is designed to cover the costs of running the business and making a profit. Business owners use past experience and experience of similar businesses to determine the expected overhead costs and profit they hope to make. This is called their margin...the amount of money available after the costs of products sold are deducted from the income from sales. If your sales equal $1 million and your product costs are $200,000, your margin is $800,000. Remember, this is not your profit. We hope by now you can explain why this is so. If not, please read this article again. LET'S PRACTICE MAKING A PROFIT This is the story of Goodies Gift Shop in its third year of operation in Small Town USA. Amelia Goodies, the owner, runs the shop with 4 full time employees, 2 part timers and herself. Her sales last year were $500,000 and her profit was $20,000 after taxes. If her balance sheet shows a net worth of $100,000 can you tell us what her return on investment was last year? Balance Sheet ( Year 2)