Banks and other lending agencies often ask for a business plan to determine whether your business idea has promise. But many entrepreneurs never write out their plans, for a number of reasons, mostly which they are too busy or don't really know how.

For entrepreneurship educators, the business plan is the technology of preparation for students to run a business. It forces the writer to make choices and decisions, and to look at the outcomes of various approaches to running the business. A business plan will be quite different for a person expecting to borrow money from the bank versus a grade school student creating a plan for a money-making project. And there are many levels in between. But in spite of the difference in sophistication, many of the same questions must be answered.

The activity supports the Entrepreneurship Content Standards/Performance Indicators as follows:

• F.09 Explain the concept of productivity,

• F.10 Describe cost/benefit analysis,

• L.34 Explain factors affecting pricing decisions,

• L.37 Set prices

This resource is part of the Entrepreneurship Learning Activities collection.

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