APP 004: Entrepreneurship

Module #17 Student Activity Sheet

Name Class number:

Section: Schedule: Date:

Lesson title: Manifest Understanding of Starting and Operating a Materials:

Simple Business SAS
Learning Targets: References:
At the end of this module, I should be able to: SHS Entrepreneurship Manual
1. Operate the business; and, https://www.thebalancesmb.com/st
2. Identify the reasons for keeping business records. arting-a-small-business-4161641

A. LESSON PREVIEW/REVIEW
Introduction

For this day, we will tackle about starting and operating a business. Are you ready to learn new things? Let’s start
the activity by answering your review of previous lesson.

B. MAIN LESSON
Content and Skill-Building

The stage is often set in the beginning, so making sure you follow all of the necessary steps when starting your
business can set the foundation for success. Here are 10 steps that are required to start a business successfully.
Take one step at a time, and you'll be on your way to successful small business ownership.

Step 1: Do Your Research

In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the
market wants. There are a number of ways you can identify this need, including research, focus groups, and even
trial and error.
Step 2: Make a Plan
A business plan is a blueprint that will guide your business from the start-up phase through establishment and
eventually business growth, and it is a must-have for all new businesses.
Step 3: Plan Your Finances
Starting a small business doesn't have to require a lot of money, but it will involve some initial investment
as well as the ability to cover on-going expenses before you are turning a profit. Put together a spreadsheet
that estimates the one-time start-up costs for your business.
Step 4: Choose a Business Structure
Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation.
The business entity you choose will impact many factors from your business name, to your liability, to how you file
your taxes.
Step 5: Pick and Register Your Business Name
Your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make
sure you think through
. all of the potential implications as you explore your options
and choose your business name.
Step 6: Get Licenses and Permits
Paperwork is a part of the process when you start your own business.
There are a variety of small business licenses and permits that may apply to your situation, depending on the type
of business you are starting and where you are located.
Step 7: Choose Your Accounting System
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 APP 004: Entrepreneurship
Module #17 Student Activity Sheet
Your accounting system is necessary in order to create and manage your budget, set your rates and prices, conduct
business with others, and file your taxes.
Step 8: Set Up Your Business Location
You will need to think about your location, equipment, and overall setup, and make sure your business location
works for the type of business you will be doing.
Step 9: Get Your Team Ready
Make sure you take the time to outline the positions you need to fill, and the job responsibilities that are part of
each position.
Step 10: Promote Your Small Business
You'll want to start with the basics by writing a unique selling proposition (USP) and creating
a marketing plan. Then, explore as many small business marketing ideas as possible so you can decide
how to promote your business most effectively.

Why should I keep records?

1. Monitor the progress of your business

2. Prepare your financial statements
3. Identify sources of your income
4. Keep track of your deductible expenses
5. Help prepare your tax return
6. Support items reported on your tax returns

Skill-building Activities

Exercise 2: Write TRUE if the statement is correct and FALSE if otherwise.

1. Records can show whether your business is improving
2. Your records can identify the sources of your income.
3. You need this information to unify business from nonbusiness receipts
4. You must keep your business records available once a month for inspection by the
IRS.
5. There are the same records you use to monitor your business and prepare your financial
statement.

Check for Understanding

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 APP 004: Entrepreneurship
Module #17 Student Activity Sheet

Direction: Write TRUE if the statements if correct, if FALSE, change the underlined word to make it right.
Write you answers on the space provided.

1. Starting up a small business involve some initial debt.

2. Your business name plays a role in almost every aspect of your business.
3. In setting up your business location you will need to consider you equipment.
4. Financial Plan is a blueprint that will guide your business from the start-up phase.
5. Accounting system is necessary in order to create and manage your marketing
strategies.

C. LESSON WRAP-UP
Summary / Frequently Asked Questions

1. What Should I do to get Started with a Home-Based Small Business?

After planning your business, you should look into state and local regulations for running your chosen
business. Be certain that you are obeying all zoning laws when it comes to running a business in a residential
house. Comply with the business licensing or fictitious business name requirements in your state and city or
town. You may need additional licensing and permits to run certain types of businesses. If you run an in-
home daycare, for example, you will need a daycare license. If you will prepare and sell food, you may need
a food preparation license. Contact your state or town office of business registration to learn the requirements
in your area.

Create space for running your business out of your home. The amount of space you need to run a
business from home depends on the type of business you choose. If you need an office, clear out a spare
bedroom or clean up a basement for this purpose. Some businesses can be run from a kitchen table. If you
stock products, consider shelves in a garage or an unused walk-in closet for storage.

2. Do businesses need insurance?

It is especially important for small business owners to carefully consider and evaluate their business
insurance needs because they may have more personal financial exposure in the event of a loss. If a business
owner does not feel he or she has the ability to effectively assess business risk and the need for coverage, they
should work with a reputable, experienced and licensed insurance broker. You can obtain a list of licensed
agents in your state through your state's department of insurance or the National Association of Insurance
Commissioners.

Also known as commercial lines insurance, these coverage include property and casualty insurance products
for businesses. Commercial lines Insurance helps keep the economy running smoothly by protecting businesses
from potential losses they couldn’t afford to cover on their own, which allows businesses to operate when it
might otherwise be too risky to do so.

Thinking about Learning

Congratulations for finishing this module! Shade the number of the module that you finished.

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