Financial Literacy #2: Entrepreneurship

Socratic Intro

1. What is a business?
[await answers]
A business is a good or service that seeks to make a profit by improving people's lives.

2. What are some things you have enjoyed or relied on in the past day and were they a good or service?
[await answers]

1. Let’s start our own business. What shall we create?
[narrow kids suggestions to 2 business for them to vote on which we choose (lemonade stand, soccer club, YouTube streamer)]

Lead a roleplay of the chosen business

• List and discuss startup costs

• How to fund the costs before you start earning money

• Variable costs

• Gross margin

• Revenue = gross margin x volume

• Gross revenue - fixed costs

• Deducting financing costs

• Income per owner

The underlying advantage of being an owner vs employee

Other concepts:

• Fuzzy distinctions: Jobs and ownership very in responsibility/creativity/and autonomy (owning a franchise is like a job and some jobs are like being an owner)

• The innovation of limited liability and limited partners — most you can lose is your starting capital and your time

• Different types of business models
• B to C vs B to B

• Do all business make a profit? (No, Khan Academy…but still needs to cover costs)

Lead Into Session III