Version 4.0 Name Company Name Job Title Student Packet
Parent/Guardian Letter Teacher s Name Contact Information (phone/email) pportunities: yes no Dear Parent/Guardian, Congratulations! Your child will be taking part in an exciting hands-on program called BizWorld. In this realworld simulation, students work together to design, manufacture, market, and sell a product as they learn what it takes to start and run a business. Students participate in all aspects of the business process including incorporating their companies with the state, selling shares of their company (stock) to raise BizBucks (the BizWorld youth. Your tax-deductible donation helps us impact children across the country and around the world by teaching them valuable business skills. To learn more about The BizWorld Foundation or to make a donation, please contact us. 1 (888) 4-BIZKIDS info@bizworld.org Facebook: The BizWorld Foundation Twitter: @bizworldorg www.bizworld.org (Complete the section below, detach, and return to your child s classroom teacher) Student s Name Date Parent/Guardian Information: Name (print) Would you like to volunteer? yes no If you would like to volunteer, what dates and times are you available? Email Phone Below are ways to connect with The BizWorld Foundation. This will help you to better understand the BizWorld program and what your child is learning in the classroom. By returning this letter with a parent/guardian signature, you are helping to fund your child s company. For a signed letter, your child will receive $1 BizBuck. If you choose to connect with us via Facebook, Twitter, and/or our website, your child will earn $2 BizBucks. Simply place a check mark for each item you complete and sign on the bottom line. Thank you! The BizWorld Foundation @bizworldorg blog.bizworld.org www.bizworld.org Parent/Guardian Signature 1
(High) (Low) What are some ways a business can earn revenue? What are some expenses a business might have? 3
Answer the following questions: 1. What is a business? Memo: Business Basics 2. 3. 4
Online Job Board Positions available in the friendship bracelet industry Job Title Oversees the smooth operation of the business Responsible for making sure everyone is on task Job Title Wants to keep revenue high and expenses low Job Title Oversees the development of the marketing campaign Wants to spend money to improve the company s image and reputation Responsible for getting the most value for the product Job Title Oversees bracelet design and helps with quality control during manufacturing Wants to ensure the product looks good and is of high quality Responsible for the design of the product Job Title Oversees the development of the sales pitch Wants to sell as much of the product as possible Responsible for making customers happy so they will buy the product Job Title Oversees bracelet production Responsible for making sure the product can be made easily and inexpensively 5
The Right Person for the Job Review the job application below and answer the related questions. Job Application May 23, 2013 CEO Smith Jamie L. VP Design City Elementary School 5th Grade VP Marketing e Why are you interested in this position? I am interested in becoming the CEO of this company because I have strong leadership skills and a passion for the friendship bracelet industry. I have a vision for the future of the industry and I believe my ideas, combined with my proven leadership ability, will benefit the company. What skills and/or personality traits do you have that will help you succeed in this job? I am a very visual person with an eye for color and fashion. I love friendship bracelets and have been making them for as long as I can remember. I played the lead role in the school play for the last two years, and my artwork (photography and painting) was recently highlighted as the featured attraction at the City Art Festival. 1. Would you hire this person to work for your friendship bracelet company? Why or why not? 2. Would you consider this person best suited for the job of CEO? Why or why not? 6
Job Application Fill out the application. Answer the questions below neatly and to the best of your ability. e The position begins immediately. Do you plan to be absent during any of the days we are working on BizWorld? Yes No If yes, what dates? Why are you interested in this position? What skills and/or personality traits do you have that will help you succeed in this job? List any previous work and/or volunteer experience that will help you in this position. We are especially interested in applicants with experience in the friendship bracelet business. 7
Job Application Applicant Name All of these jobs are leadership roles. Describe a time when you had to lead a group or another person. All jobs will be part of a team. How will you help make sure your team is successful? Is there any position you would NOT be good at? If yes, explain why. Read carefully before signing: Applicant s signature: Date: TO BE FILLED OUT BY THE TEACHER will be the in 8
Memo: The Entrepreneurial Cycle Congratulations! You and a group of your classmates are going to start and run your own business. The following list includes steps that every BizWorld company must complete in order to be successful. Number the steps, 1 to 4, in the order you think they should happen: Sell your product (sell) Market and advertise your product (tell) Design a product (draw) 1. 2. make. 9
Business Plan Worksheet Company Name: chance to raise the money you need to start your company. The business plan helps your company create a strong, well-organized pitch and get more funding. 1. The purpose of our company is: 2. Give two reasons people will want to buy your product(s). 3. What skills do your company s employees have that will make your business successful? 4. How will your product(s) stand out from the competition? 5. Who do you expect your customers to be? (age, gender, traits) 6. 7. 10
Pricing Worksheet The following activity will assist your company in creating a pricing structure necessary $60BB plus ($60BB + bank loan) $ BB - $ BB = $ BB *Did your company take out a loan from the bank? Yes No If you checked no, your company s total estimated expenses are $60BB. If you checked yes, your company s expenses are $60BB plus the amount of the loan. Fill in the Total Estimated Expenses line with the correct number. To create a pricing structure for your products, follow the steps below: 1. Separate your products into 2-3 groups based on the different prices you will charge. You can charge a different price based on size, quality, or complexity of the product. 2. Count the products in each group and record the number in the # of products column below. # of products X Price per product = Potential revenue (sales) Products X BB = BB Products X BB = + BB Products X BB = + BB Total Estimated Revenue = BB 3. Using a pencil, choose the price your team will charge for a product in each group and write it in the Price per product column in the chart above. 4. Solve the multiplication equation for each row in the chart above. # of products X Price per product = Potential revenue (sales) 5 X $2BB = $10BB 11
Pricing Worksheet 5. Add all the numbers in the far right column (the potential revenue for each group) to calculate your Total Estimated Revenue. 6. Remember, your goal is to make the highest amount of revenue possible. The higher When pricing your product, you should also think about different situations that could happen during the Sales Bazaar. Discuss the following situations and how they could affect your prices. Develop a strategy for how to handle each situation to be sure your 1. Other companies are discounting their products towards the end of the Sales 2. You are the last company with products remaining at the Sales Bazaar and there are still customers who want bracelets. What could you do to your prices? Why? 3. Two customers want the same product, and you only have one left. What could you do? Why? BONUS: In the space below, describe another situation that could affect your prices during the Sales Bazaar and your solution. 12
Memo: Logos and Slogans Companies often use logos and slogans to help customers easily recognize the company s brand or product. How many of these companies/products can you identify from the logos and slogans below? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Just do it. 11. Melts in your mouth, not in your hand. 12. They re grrrreat. 13
Company Ledger Date Part (Business 101, A, B, C, D) Description ($) Deposit (+) ($) Withdrawal (-) Balance Employee Initials *Reconciled (check mark) 14
Company Ledger Date Part (Business 101, A, B, C, D) Description ($) Deposit (+) ($) Withdrawal (-) Balance Employee Initials *Reconciled (check mark) 15
Finance Worksheet (Business 101 and Part A, Sessions 1-6) A Company Stock 1. How many shares of stock did you get from the state? 2. - Shares on Hand: 3. Total shares of stock you currently have on hand...= Cash In (Deposits) 4. How many BizBucks did the founders contribute? 5. + 6. Other cash in (Description: ) + 7. Other cash in (Description: ) + Total Cash In: 8. Total BizBucks you received during Business 101 and Part A (Cash In)...= Cash Out (Withdrawals) 9. How many BizBucks did you spend to incorporate? 10. How many BizBucks did you spend on the Design Package? + 11. How many BizBucks did you spend on string? + 12. How many BizBucks did you spend on salaries? + 13. How many BizBucks did you spend on rent? + 14. Other cash out (Description: ) + 15. Other cash out (Description: ) + Total Cash Out: 16. Total BizBucks you spent during Business 101 and Part A (Cash Out)...= Cash on Hand = Total Cash In - Total Cash Out Cash on Hand: 17. How many BizBucks does your company currently have on hand?...= Count your BizBucks and make sure this number matches the number in the box. 16
Finance Worksheet (Part B, Sessions 7-9) B Company Stock 18. How many shares of stock did you have at the end of Part A? 19. - Shares on Hand: 20. Total shares of stock you currently have on hand...= Cash In (Deposits) 21. How many BizBucks did you have at the end of Part A? 22. How many BizBucks did you borrow from the bank? + 23. + 24. Other cash in (Description: ) + 25. Other cash in (Description: ) + Total Cash In: 26. Total BizBucks you received during Part B (Cash In)...= Cash Out (Withdrawals) 27. Did you spend additional BizBucks on string? How many? 28. How many BizBucks did you spend on salaries? + 29. How many BizBucks did you spend on rent? + 30. How many BizBucks did you spend on interest? + 31. Other cash out (Description: ) + 32. Other cash out (Description: ) + Total Cash Out: 33. Total BizBucks you spent during Part B (Cash Out)...= Cash on Hand = Total Cash In - Total Cash Out Cash on Hand: 34. How many BizBucks does your company currently have on hand?...= Count your BizBucks and make sure this number matches the number in the box. Company Inventory How many products did your company manufacture? Total Products: 17
Finance Worksheet (Part C, Sessions 10-11) C Company Stock 35. How many shares of stock did you have at the end of Part B? 36. - Shares on Hand: 37. Total shares of stock you currently have on hand...= Cash In (Deposits) 38. How many BizBucks did you have at the end of Part B? 39. + 40. Did you borrow additional BizBucks from the bank? If yes, how many? + 41. Other cash in (Description: ) + 42. Other cash in (Description: ) + Total Cash In: 43. Total BizBucks you received during Part C (Cash In)...= Cash Out (Withdrawals) 44. How many BizBucks did you spend on the Marketing Package? 45. How many BizBucks did you spend on salaries? + 46. How many BizBucks did you spend on rent? + 47. How many BizBucks did you spend on interest? + 48. Other cash out (Description: ) + 49. Other cash out (Description: ) + Total Cash Out: 50. Total BizBucks you spent during Part C (Cash Out)...= Cash on Hand = Total Cash In - Total Cash Out Cash on Hand: 51. How many BizBucks does your company currently have on hand?...= Count your BizBucks and make sure this number matches the number in the box. 18
Income Statement (or loss) over a period of time. In this case, it is the period of time since you started BizWorld. Revenue (Sales) Total Revenue: 52. Total revenue?...= Expenses (Withdrawals) 53. What were your total Business 101 and Part A expenses? 54. What were your total Part B expenses? + 55. What were your total Part C expenses? + 56. What were your total Part D expenses? + 56a. How many BizBucks did you spend on salaries? 56b. How many BizBucks did you spend on rent? + 56c. How many BizBucks did you spend on interest? + 56d. Other cash out (Description: ) + 56e. Other cash out (Description: ) + 56f. Total BizBucks you spent during Part D...= 57. How many BizBucks did you spend on loan repayment? + 58. Total expenses (withdrawals)...= 59. = Total Expenses: Cash on Hand 60. How many BizBucks does your company currently have on hand?...= Count your BizBucks to reconcile; your current cash on hand is: ($BB at end of Part C + revenue) - (Part D expenses + bank loan repayment) Cash on Hand: 19
Balance Sheet companies have already repaid their bank loans, they should not have any debt. Assets (what you own) 61. Cash on Hand ( Liabilities (what you owe) 65. Accounts Payable 62. Accounts Receivable + 63. Inventory + 64. What is the value of your company s total assets?...= Total Assets: 66. Debt + 67. What is the value of your company s total liabilities? = 68. How many BizBucks did you have/receive to start your company? Total Liabilities: 69. How many BizBucks did you 70. What was your company s 71. How much did your company borrow from the bank? + 72. What is the value of your company s total assets?...= Total Equity: Total Assets: = Total Liabilities + Total Equity: If these numbers are equal, you have completed your company s balance sheet correctly. 20