Making a Simple Plan
Before starting a business, making a simple plan: what will I make or do, who will buy it, what do I need, how much will it cost, and what price will I charge?
What a learner can do afterwards
- Write or draw a simple business plan covering: product, customer, materials needed, and price
- Identify at least three things they would need before they could start selling
- Explain why planning ahead is better than just starting without thinking
1 · Read
Before you start selling anything, it helps to make a simple plan, so you do not run out of supplies or forget your price. A plan answers four questions: What will I make or do? Who will buy it? What do I need to get started? What price will I charge?
Mia wants to sell friendship bracelets at the school fair. Her plan: Product is bracelets. Customer is kids at the fair. Supplies are string and beads. Price is $2 each. If she thinks of one more supply later, she adds it to her list.
If you skip the plan and just start, you might run out of supplies, forget to set a price, or make something nobody wants. A few minutes of planning saves a lot of trouble later.
A simple plan answers four questions: what you'll sell, who will buy it, what you need, and what price you'll charge.
The rewritten readings were written for this dataset.
More to read
Plan before selling
A business needs a plan before it begins. Even a company that builds and repairs buildings starts by asking questions.
Who nearby needs building work? How much do other builders ask people to pay? Learning about possible customers and prices is called market research.
Then work out the costs. Tools, a truck and safety gear need money. Decide where that money will come from. Think about how customers will hear about the business too. You might use a website or hand out flyers.
You can ask similar questions for a lemonade stand. Who might want a drink? Which supplies must you buy? What price will you ask? Answering these questions helps you get ready before you start.
Give a big job a plan
Lots of homework can feel like too much. A plan can help you manage it.
Put all your tasks on paper. You can see what needs doing instead of trying to remember everything.
Try starting with the hardest task. Finishing it may make the others feel less daunting. Keep working through your list. Mark each task when it is done so you can see your progress.
Planning can help with selling things too. List what you will make, your possible customers and the supplies you need. Think through the tricky parts before you begin. A large job becomes a set of smaller tasks.
Plan a sewing business
Sewing could become a small business you run at home. Start by checking your skills. You might be able to stitch a straight line or mend torn jeans. Choose work you know how to do.
Ask relatives and neighbors whether they would buy your sewing. If there is no interest, try another idea.
Count the costs before deciding what to charge. Besides a sewing machine, you will need cloth, needles and thread. Your price needs to cover your costs so each job does not lose money.
For a child's business too, planning means choosing something you can do, finding buyers and working out the costs.
Plan a climbing tower for a cat
A tower gives a cat somewhere to climb at home. Plan it with an adult before buying supplies.
Sketch the tower on paper. Decide its height and the number of levels. Use your drawing to work out which materials you need and how much to buy. Your list might include wood, carpet, rope and fabric. This helps you avoid buying things you will not use.
The same planning helps when starting a business. Decide what you want to make, list the supplies and add up their cost. Planning can make building easier and more enjoyable. Without a plan, you may need extra shopping trips or spend more than you meant to.
Count the costs before choosing a price
A shop needs to work out the cost of making something before setting its price. Making a product has three kinds of costs.
Materials become part of the product. For a toy car, these might be wooden pieces, wheels and paint.
Work costs money too. Someone uses their time to cut pieces, paint them and build the car.
Other costs help keep the workshop running. These include rent and the electricity used by tools.
Suppose these costs total 3 dollars. Selling for less loses money. Selling for exactly 3 dollars covers the costs. A price above 3 dollars leaves money called profit.
Whether you sell lemonade, cookies or bracelets, count your costs before choosing your price.
2 · Watch
به انگلیسیTake it off screen
Where it sits
Where this leads
Jobs that lean on this skill. Follow one to see everything it is built on.
8 questions wait behind this lesson, each with its answer explained. Every answer feeds the sky: stars light as they are learned, and dim when it is time to come back.