The #1 Piece of Business Knowledge Entrepreneurs Wish They Knew – Part 3

yef-logoThis is the third part of a series fueled by a single question asked to successful entrepreneurs:

“What is the #1 piece of business information you wish you had known when you were younger?”

Today’s answer: Give it away for free & build your network

Finding Role Models for People Young and Old

Many parents, employers, and young entrepreneurs are looking for role models for their kids, staff and themselves.  Where to start? Here is one idea:  Role Models on Paper from the new beta site: The Hot Mommas Project free case study library. Below you will find more on the project, as well as suggested exercise for parents, educators, and young entrepreneurs.

The Hot Mommas® Project produces curricula for dynamic female leaders. However, as you will see below that the cases are appropriate for both young men and women seeking role models.  On of the main reasons is the  award-winning case studies  showcase not only successful business practices, but also successful personal practices including the identification of leadership abilities and work-life balance strategies. The project is  housed at the George Washington University School of Business.  The project is popular in the social media community – hence the edgy name – and allows instructors the opportunity to connect with case protagonists on their Facebook, Twitter, LinkedIn, and other pages.

Suggested Exercise:

Need a student or young adult to tap into their potential? As  a creative extra credit assignment or family book club, have your young role model write their own mini case study (500-1500 words). Use the case study wizard at www.HotMommasProject.org beta site (About). Here is what to do:

1. Prep the student with the template at the bottom of this page.
2. Have students choose “Create a new case” at www.HotMommasProject.org (must be 18 or older).
3. Women choose “F” and men choose “M” in their profile.
4. Move through the case wizard steps, click “publish at the end.”
5. Go to “Case Library”, click “View” and send you the link as proof they have completed their case study.

Bonus: If their case study is good enough, they could be published in a top Prentice Hall textbook, other media outlets, plus receive thousands of dollars in  prizes as part of the case study competition through January 31.  See judging criteria.

For more information, click this post.

To nominate your young role model, click this post.

For virtual coaching, click here.

Here are two examples of case studies by students/young adults.

http://www.hotmommasproject.org/caseview.aspx?id=81

http://www.hotmommasproject.org/caseview.aspx?id=80

Alternative exercise:

Sign in at www.HotMommasProject.org and select 5 cases to read.  Answer the following questions:

1. Which is your favorite, and why?

2. Which person is the strongest professional role model, and why?

3. Which person is the strongest personal role model, and why?

4. Do you think it’s possible for someone to be both a personal and a professional role model? Discuss.

Start Now: 4 Reasons to Start a New Business in a Slow Economy

4 Reasons to Start a New Business in a Slow Economy plus links to tips on making money and growing in a down economy, plus classroom exercises on finance and the financial crisis.

Young Entrepreneur Scholarship Applications Now Available Online

We interrupt our series on teaching finance to bring you some exciting news

WASHINGTON, D.C., October 16 — Attention all high-school seniors – do you think you have what it takes to be recognized as a 2009 Young Entrepreneur Award Winner? It’s time to find out. Scholarship applications are now available for the 2009 Young Entrepreneur Awards, a scholarship program sponsored by the National Federation of Independent Business Young Entrepreneur Foundation.

Starting October 16, students can visit www.NFIB.com/YEA to apply for a scholarship online. For the online application process, students will need to enter the access key “NFIB.” The deadline for applying for a 2009 YEF Award is December 15, 2008. For more, see press release.

Contact: Melissa Sharp (202)314 -2068 or Melissa.Sharp@NFIB.org

The Financial Crisis and Small Business in the Classroom – Part 3

This is the third of a 4-part series on small business and the financial crisis.  (See post #1 and post #2). The major teaching points and exercises in this series are based on an interview with the Acting Director of the Small Business Administration, Sandy K. Baruah (see this video).

Today’s topic: Financial Statements 101 & an Introduction to Debt and Equity.

Among other key tips for small business, Sandy K. Baruah – SBA Acting Administrator – noted that in obtaining credit your business’s current financial situation is important.  70% of small businesses report having problems obtaining credit. Banks want to know: Will you be able to pay back your loan?

Suggested Exercises:

Level A. Engage students in an overview discussion about the importance of understanding a business’s finances using the following articles as a starting point:

Credit crisis for small business

Financial literacy is hot (see bottom of earlier post)

This article from Business Week runs through a laundry list of items for small business owners to look into regarding their banks, insurance carriers, and the like. However, the big takeaway is for business owners to be prepared to handle decreased confidence in the economy which can impact spending.

Level B. Complete a financial exercise in the EITC curriculum or other “financial statement 101″-type template.  Discuss debt/equity and financial statement sections. Debt, Equity, and Financial Statements: Module 3, Slides 23 to 30 (Option: Exercise 3-4 PDF, Part 2) & Slides 44 to 52

See Entrepreneur in the Classroom (EITC) Module 3 for more on financial statement exercises. (EITC free curriculum)

The Financial Crisis and Small Business in the Classroom – Part 1

Everyone is talking about the financial crisis.  But what is the impact on and by small business? This is the first of a 4-part series on this topic.  The major teaching points and exercises in this series are based on an interview with the Acting Director of the Small Business Administration, Sandy K. Baruah (see this video) for interview. Below is a summary, with each of the upcoming posts delving into more depth:

What small business owners can do to help themselves in this crisis:

- Affirm or build relationship with financial institution.

- Prepare for the long haul.

What the government is doing:

- SBA guarantees/backs 85% of the loan to financial institutions providing SBA loans to small businesses.

Baruah interview takeaways:

1. Small business and entrepreneurs are important – Baruah describes entrepreneurs and small business as the ‘engine of our economy’ providing two-thirds of all jobs in the U.S. However, 70% of small businesses report having problems obtaining credit.

2. Business plan – In discussing how to address the challenge of obtaining credit, Baruah suggests the number one thing a business owner should do is provide a solid business plan. Show sound thinking behind your business and the approach to your market.

3. Current financial situation – The next key item Baruah mentions as important to banks is your business’s current financial situation. The bottom line here is: Will you be able to pay back your loan?

In preparation for the suggested exercises offered over the next 3 posts, check out the following links. You might consider assigning some of these readings to students.

Financial literacy is hot (see bottom of earlier post)

VIDEO – SBA Chief on Small Business and the Financial Crisis

Credit crisis for small business

Explaining the financial crisis to kids

List of financial media blogs/resources

SBA press release on the role of small business in the US economy

Entrepreneur in the Classroom Curriculum Sections (EITC free curriculum):

-  Role of Small Business in the Economy: Module 1, Slides 21 to 29.

- Debt, Equity, and Financial Statements: Module 3, Slides 23 to 30 (Option: Exercise 3-4 PDF, Part 2) & Slides 44 to 52

- Business planning: Module 3, Slides 4 to 43

Stay tuned for upcoming posts with information and exercises on:

- The Role of Small Business in the US Economy

- Financial Statements 101 & an Introduction to Debt and Equity

- Business Planning

Want to learn more about entrepreneurship for young people. See the free EITC curriculum.

Entrepreneurship at Home and School – The Learning Success Plan

What is a Learning Success Plan? It was developed by Pat Cooley -  technology entrepreneur and member of Entrepreneurs Organization.  Pat generously agreed to share his one-page system for tracking his kids’ academic performance and goals.  He calls it their “Learning Success Plan.” It has three major components:

a. His child’s current classes, and grades in each class.

b. The key success factor (one for each class) to maintain or improve their grade.

c. An overall goal, such as “I want to watch Monday night football” or “I want to earn my parents’ respect and trust so I can travel abroad.” This statement is the motivation for achieving their goals and getting good grades.

This chart might be helpful and interesting for:

1. Entrepreneurship beginners – the Learning Success Plan is a great example of entrepreneurial traits (something that may not be 100% familiar) to a home and school setting (something that is 100% familiar).

2. For advanced educators, students, and entrepreneurs – the Learning Success Plan is a great example of how to apply entrepreneurial systems outside of the workplace.

Entrepreneurial thinking is everywhere, and this is another example.

For more on entrepreneurial traits, see Entrepreneur in the Classroom (EITC) Module 1 (Powerpoint slides 15 to 20). Here is the link to the EITC free curriculum.

Interactive Business Game – Johnny Money – Is LIVE and FREE!

The simulated business game – Johnny Money – has rolled out. (Click here for story). Guess what? It’s free.  Find a few quotes from users at the bottom of this post.  Caution: Apparently it’s quite addictive.  Find the Johnny Money game HERE.

Tip: Use the below links as a 2-in-1: Read about Johnny Money game and continue to explore these sites for resources great for educators, students, and entrepreneurs.

You Tube Demo on using Johnny Money

Exploring further: Type “entrepreneurship” into the search box at the top of the You Tube site.

SBTV.com (Small Business Television) on Johnny Money

Exploring further: Click on the topics at the left side bar ranging from “marketing” to “management” to “pain in the workplace.” (We’re assuming this last one is not about the need for better lumbar support).

As a wrap up, here is what members of the blogging/gaming/and social media community are saying.

mtlehman Sep 14th, 2008 at 3:11 pm

Awesome game. It offers a brief view into the business world without having to worry about the true financial backing. In the end, it gives you access to a business in a matter of minutes rather than years. What a great way to learn the ropes!

ElisaQuick323 Sep 14th, 2008 at 5:54 pm

What a cool idea! I think it would help people, like myself, who are CLUELESS about such things as owning a business!

Source: http://www.ThinkBeta.com/blog

Getting started

Looking for ways to get started? Read about the Entrepreneur in the Classroom (EITC) curriculum, register, and consider starting with our EITC alternative exercises. These are great if:

1. You are not familiar with entrepreneurship

2. Your group/class is not familiar with entrepreneurship

3. You are working with/teaching a group of high-energy people and need to keep their interest

4. All of the above

Ready to dive in for the full meal deal? Register for our free Entrepreneur in the Classroom curriculum and peruse the three modules.

Click here to subscribe to this blog.

What’s hot?

Financial literacy

Social media: Check out top entrepreneurship blogs at http://www.alltop.com

The case for entrepreneurship

Welcome to our blog

Welcome to the blog for the NFIB Young Entrepreneur Foundation.  (See “About” for more on us.  The goal for this blog is to serve as a gathering place for:

- Educators – Both using our curriculum (link to curriculum) and educators interested in entrepreneurship, in general.

- Future entrepreneurs – Young entrepreneurs seeking learning tools and forums.

- Current entrepreneurs – Providing advice and insight about the real world of entrepreneurship.

Email our author with your ideas for blog content….the most popular topics will be featured in weekly posts.

Click here to subscribe to this blog.