Open for Business

 

Introduction

Do you have a marketable skill?  Are you mechanically inclined?  Do your friends come to you for help with their projects?  Have you ever thought about trying to make some extra money by putting your skills to use?  During the course of this project, your group will work together to develop a business plan and the necessary forms to run a successful business. 

 

Task

Your first task is to discuss the various hidden talents within your group and choose one to focus on. Next, your group will begin exploring the services that you plan to offer and the price for each.  Your next step will be to decide what needs to be purchased just to get the business started. Finally, your group will explore the possible profits of a well-planned business.

 

Instructions

Complete each problem in order.  Be sure to keep careful notes and save your work as you proceed.  You will work together to create a business proposal at the conclusion of the project.

 

1.      Within your group, discuss your various skills and the possibility of people paying money for your particular skill set.  Use the table below to organize your thoughts.  Be sure to save the information, as you will include it with your final product.

 

Name

Skill

Charge for service

 

 

 

 

 

 

 

 

 

 

 

 

 

·         Everyone has a special skill or talent.  Sometimes we can’t take advantage of the ability to make some extra money due to time constraints.  (There are only so many hours in the day.)  Imagine you had all the time in the world.  What could you create?  What could you help others create?  What are your passions?

 

2.      Now discuss the various skills within your group and work together to collect information.  In order to make a good decision about which business would be most successful, you will need to use math.  Use the following table to help organize your work.   Round to the nearest dollar. Again, be sure to save the work to include in your final product. 

 

Explanation of Table for Problem 2

·         Number of items sold or services performed per month:  How many items or services would you be able to sell per month?  Think about how many paintings you could make in one month?  How many haircuts could you give?  Etc.

 

·         Selling cost per item or service:  Set an average selling cost.  Some items will be more complex and some will be simpler, but try to come up with an average price for which you would sell your product or service.

 

 

 

·         Potential Revenue:  In order to find the potential revenue, your group will need to perform the following math calculation for each skill.

 

 

·         Start up costs:  What will need to be purchased to make the business run?  Include any one-time costs such as hair clippers, paper cutters, easel, etc.  Also, include supplies necessary to make the product, such as, paper, lumber, etc.  Include enough supplies to make your product for one month.  Use the following model to find your total start up costs.

 

 

·         Potential Profit:  In order to find the potential profit, you group will need to perform the following math calculation for each skill.

 

 

 

Table for Problem 2

 

Skill 1

Skill 2

Skill 3

Skill 4

Number of items sold or services performed per month

 

 

 

 

Selling cost per item or service

 

 

 

 

Potential Revenue for one month:  Show your math within the table.  (See below for how to set up the math)

 

 

 

 

Total start-up costs for one month: Show your math within the table.  (See below for how to set up the math)

 

 

 

 

Potential Profit  after one month: Show your math within the table.  (See below for how to set up the math)

 

 

 

 

 

3.      Based on the information gathered in the table above, discuss which business your group will decide to focus on and why.  Answer the following questions and include the answers in your final product.

·         Which skill has the biggest start-up cost?  Why?

·         Which skill will be able to charge the most per item? 

·         Which skill will be able to sell the most items in a month?

·         Which skill did your group choose to use for this project?  Why? 

 

4.      Develop a price list for the various services provided.  A price list will have a detailed description of each product or service for sale.  Include at least five items on your price list.  Make the prices each whole dollar amounts.

·         You will need to create a professional-looking product.  Create a business logo or slogan for the top of the price list and then create a table with the description of each item and the price.  You can either create your price list using a word-processing program or neatly hand-write it.

 

5.      Now that you have your price list developed, create an invoice for five customers.  An invoice is an itemized bill given to the customer.  The customer will make payment based on the invoice.  You will need to calculate the total cost for each invoice and show your work mathematically.  Save all five invoices, as they will be included in your final product. 

·         A sample invoice appears below.  A Google search of “Invoice Template” will also allow your group to see additional samples.

 

Sally’s Card Emporium

 

Product:

Price per product:

Quantity:

Subtotal:

Small greeting card

$2

4

$8

Large greeting card

$3

2

$6

Postcard

$1

1

$1

Envelopes, small

$1

4

$4

Envelopes, large

$2

2

$4

 

 

 

 

TOTAL

 

 

$23

 

·         Notice that the price per product is multiplied by the quantity, or number of products, to get the subtotal.  Then the subtotal column is added to get the total of the invoice.  This is the amount that the customer would pay.   Be sure to check your work carefully on each invoice.

 

6.      Use the totals from the five invoices to determine an average total for all customers.  To find the average, you will need to add the totals from each of the five invoices and then divide by five.  Use the following model to help:

 

 

Collaboration

Get together with another group and work together before beginning your final product.  This is the time to find potential errors before finalizing your project.

 

First:  Compare the tables from Problem 2 with another group.  Work specifically to check for errors in the math calculations.  If an error is noted, discuss the error and work together to find the correct answer. 

 

Second:  Compare your price list with the other group.  Make sure that the other group agrees that your prices are fair.  You do not want to set your prices too low, but cannot set them too high, either.

 

Third:  Look over the other group’s five invoices carefully.  If an error is noted, discuss the error and work together to make a correction.  (Be careful.  If an error is found on an invoice, the group will need to re-work problem six to get a correct average price.)

 

Fourth:  Discuss whether you believe that your business has the ability to generate additional money.  What have you learned in the course of this project?   

 

Conclusion

You have two options for your final product.  You will need to include the answers to each of the six problems no matter which product you choose.  You will also need to include all of your mathematical calculations.  The math can either be neatly hand-written or typed.  Work together to create a product that represents your group’s individual interests and strengths.  You may choose between a written report or an oral presentation with handouts.

 

Written Report:  Work together with your group to create professional looking, finalized versions for each of the six problems.  Consider including a business logo on each written document to unify your presentation.

 

Oral Presentation: Who will discuss problem one?  Two? Etc.  What handouts will you need to prepare in order to help the audience follow along?  You will want to create professional looking, finalized handouts.  Again, consider creating a business logo to unify your presentation.

 

Grade

Your project will be given a score of 1 to 4, with 4 being the highest score possible. You will be evaluated based on the following criteria:

 

Score

Content

Presentation

4

Your project appropriately answers each of the problems.  Your mathematical calculations are set up and carried out properly.

 

Your project gives clear mathematical reasoning behind which skill was chosen and why.

Your project contains information presented in a logical and interesting sequence that is easy to follow.

 

Your written material is professional looking.

 

3

Your project appropriately answers each of the problems.  Your mathematical calculations are, for the most part, set up and carried out properly.  Minor errors may be noted.

 

Your project gives mathematical reasoning behind which skill was chosen and why.  Minor errors may be noted.

Your project contains information presented in a logical sequence that is easy to follow.

 

Your written material is neatly presented.

 

2

Your project attempts to answer each of the problems. Some mathematical calculations are set up and carried out properly; however, major errors are noted on other calculations.

 

Your project gives little mathematical reasoning behind which skill was chosen and why.  Major errors are noted.

Your project is hard to follow because the material is presented in a manner that jumps around between unconnected topics.

 

Your written material lacks a neat, orderly appearance.

1

Your project attempts to answer only some of the problems. Major errors are noted on most mathematical calculations.

 

Your project gives no mathematical reasoning behind which skill was chosen and why.  Major errors are noted.

Your project is difficult to understand because there is no sequence of information.

 

Your written material is hard to follow due to an overall illegible appearance.

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