New Enterprise Planning – Lesson Plan
This National FFA Risk Management lesson plan, “New Enterprise Planning,” teaches students how to plan a new business enterprise. Students learn to identify the components of a business plan (executive summary, mission statement, business goals, marketing plan, and financial planning) and to define key financial terms needed to create financial documents for an enterprise. The lesson includes an interest approach, content instruction, transparency masters, application activities, and a matching assessment.
At a glance
- Learning objectives
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- Identify the pieces of a business plan for starting a new enterprise
- Define the necessary terms to create financial documents related to an enterprise
- Time required
- Instruction time for this lesson: 50 minutes.
- Materials
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- TM.A
- TM.B
- AS.1 – One per students
- Assessment – one per students
- Precepts
- Vision — C1. Contemplate the future; C2. Conceptualize ideas
- Key Terms
- Breakeven Point, Equation for Breakeven Point, Economics of One Unit (EOU), Variable Costs, Fixed Costs, Cost of Goods Sold (COGS), Contribution Margin, Depreciation, Inflation, Net Profit, Start-Up Investment, Payback, Income Statements, Cash Flow Statements, Balance Sheets, Receipts, Invoices, Inventory, Business Plan, Executive Summary, Mission Statement, Business Goal, Marketing Proposal or Plan, Financial Plan
- Resources
- Gibson, J. D., Usry, R. H., Hass, L. W., Liles, R. T., & Moore, G. E. (2001). Agribusiness: Management, Marketing, Human Recourse Development, Communication, and Technology. Danville, IL: Interstate. Penn State University. (2004). Developing a Business Plan [Brochure]. University Park, PA: Author. United States Department of Agriculture Risk Management Agency. (1997). Introduction to Risk Management Understanding Agricultural Risks: Production, Marketing, Financial, Legal and Human Resources [Brochure]. Washington, D.C.: Author.
Downloads & Links
Aligned Standards
National Standards
- NL-ENG.K-12.6Applying Knowledge — Students apply knowledge of language structure, language conventions, media techniques, figurative language, and genre to create critique, and discuss print and non-print texts.
- NSS-EC.9-12.12Interest Rates
- NSS-EC.9-12.15Investment — Understand economic growth creates new employment and profit opportunities in some industries, but growth reduces opportunities in other industries.
- NSS-EC.9-12.9Competition in the Marketplace — Students understand the introduction of new products and production methods by entrepreneurs is an important form of competition and is a source of technological progress and economic growth.