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AN INTRODUCTIONTO SMALL BUSINESSAn English Language and Civics,Business Education Workbook forEnglish Language LearnersSTU...
Introduction to Small Business for ELLAN INTRODUCTION TO SMALL BUSINESSAn English Language and Civics, Business Education ...
TABLE OF CONTENTS                                                                                             PageUnit 1: ...
Introduction to Small Business for ELLReading 12 - "Pricing Strategies”Have you ever wondered how businesses determine the...
Below market               If you want to attract customers who are willing to sacrifice                                  ...
Introduction to Small Business for ELL   1Exercise 12.2Complete the chart by naming a business that fits each pricing stra...
Exercise 12.3We will look at the websites of the businesses below. Decide if you think the business’ pricingstrategy will ...
Introduction to Small Business for ELLIntroduction to Product Pricing – Important Phrases       Invoice price           Th...
2. Estimate the quantity of products you hope to sell in one month (base this                estimate on your future sales...
Introduction to Small Business for ELLExercise 13.1Answer the following questions1. What does the acronym MSRP mean? _____...
Exercise 13.2Fill in the blanks.           If the invoice price of a camera is $32.00 per item, and the selling price     ...
Introduction to Small Business for ELLExercise 13.3Using these formulas, calculate the minimum Markup Amount and Selling P...
APPENDIXSMALL BUSINESS  RESOURCES
Introduction to Small Business for ELLVocabulary                          Lesson Write the Definitions belowAcronym       ...
Vocabulary                    Lesson Write the Definitions belowResidential Zone              6Sacrifice                  ...
How well do you understand the following topics about Small                         Business Ownership?Circle the number t...
Introduction to Small Business for ELLCourse Final QuestionnaireDuring the course of this class…1. What new word and phras...
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Evidence for my ePortfolio - An excerpt from my 72-page manual called An Introduction to Small Business - An English Language and Civics, Business Education Workbook for English Language Learners.

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  • Hello Ms. Walker,

    I'm gathering materials and preparing assessments for an EL Civics unit on starting a small business. Do you know of any existing assessments for low to intermediate ESL learners that can be adapted to our adult school ESL classes?
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  1. 1. AN INTRODUCTIONTO SMALL BUSINESSAn English Language and Civics,Business Education Workbook forEnglish Language LearnersSTUDENT WORKBOOK Written by Michelle Y. Walker-Wade (formerly Riley) 2003
  2. 2. Introduction to Small Business for ELLAN INTRODUCTION TO SMALL BUSINESSAn English Language and Civics, Business Education Workbook for English LanguageLearners Statistics show that the American immigrant population is finding the key to economic freedom in entrepreneurship. Likewise academia is experiencing a surge in opportunities for Vocational ESL training. What better response could we have, than to unite English- as-a-Second- Language education with Business Education? This workbook has been developed to help further the English Language Learner’s desire to speak and excel in the world of business. It has been quite an ambitious journey, but well worth the effort. The lessons are developed for the Intermediate/Advanced to Advanced ESL student. Due to the number of complex business terms and concepts, this book is a great “next step” for the students who are reaching the top of the ESL ladder. This workbook and course do more than teach Civics, English and Business; it teaches students a little bit about, American business culture and how they fit into it, community building, goal setting, sales tax, how to read a receipt, mathematics, problem-solving and planning, and so much more. The format of the workbook is one that will enhance the students reading and vocabulary skills. Furthermore, the suggested classroom activities (see the appendix) are great for increasing the student’s speaking and listening skills.
  3. 3. TABLE OF CONTENTS PageUnit 1: Getting Down to Business Lesson 1:Where Do I start? ............................................................ 1-6 Lesson 2: I Think I Want to be an Entrepreneur.............................. 7-11 Lesson 3: It’s Time to Start Planning .............................................. 12-16Unit 2: Making Your Business Legal Lesson 4: Making Your Business Legal......................................... 17-19 Lesson 5: Business Licenses in the State of California ................... 20-22 Lesson 6: Zoning Clearances ......................................................... 23-26 Lesson 7: Fictitious Business Names ............................................. 27-29 Lesson 8: Seller’s Permits ............................................................. 30-34 Lesson 9: Business Ownership Structures...................................... 35-40Unit 3: Your Business Plans Lesson 10 :Introduction to Business Plans ...................................... 41-44 Lesson 11: Elements of a Business Plan ......................................... 45-49Unit 4: Pricing Your Products Lesson 13: Three Pricing Strategies................................................ 50-53 Lesson 14: Simple Mathematics ..................................................... 54-58 Lesson 15: Operating Costs............................................................ 59-62Appendix Vocabulary..................................................................................... 64-67 Exercises Key ................................................................................ 68-70 Data & Evaluation Forms ............................................................... 71-72
  4. 4. Introduction to Small Business for ELLReading 12 - "Pricing Strategies”Have you ever wondered how businesses determine the price of their products? Pricing is a veryimportant part of having a successful business. Not only does it determine how profitable yourcompany will be, it will also affect your customer’s demands and expectations. There areseveral factors to be considered when determining prices. These factors are summed up intothree basic pricing strategies: Above Market pricing, Competitive Market pricing, and BelowMarket pricing. A detailed explanation of each strategy is below. 3 Pricing Strategies If…Then… Above market If you want to attract customers who are willing to pay higher prices in exchange for premium service, then above ~ This means that… ~ market prices are good for you. When compared to other If you want to attract customers who are willing to pay businesses selling the same or higher prices in exchange for elegant environments, then similar products, these prices are above market prices are good for you. a bit higher. If you are opening your business in a fancy neighborhood or This is called some other location where there are few competitors, then “High-end Pricing” above market prices are good for you. If you want to grow your business on quality, rather than quantity, then above market prices are good for you. Competitive market If your business sells a product customers can easily obtain from another business, then competitive prices are good for ~ This means that… ~ you. When compared to other If your business sells a variety of products, then businesses selling the same or competitive prices are good for you. similar products, your prices are about the same. If you want to attract customers who look for average quality, name-brand products at good prices, then This is called competitive prices are good for you. “Medium Pricing” If your business is located in a primary commercial zone, then competitive prices are good for you.Written by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 4
  5. 5. Below market If you want to attract customers who are willing to sacrifice quality for lower prices, then below market prices are good ~ This means that… ~ for you. When compared to other If you want to sell off-season products, then below market businesses selling the same or prices are good for you. similar products, your prices are lower. If you want to sell a small variety of products in large quantities, then below market prices are good for you. This is called “Low-end Pricing” If your business is for enjoyment rather than for high profits, then below market prices are good for you.Exercise 12.1: Working with New Words and Phrases Compare(d) Quality Premium Quantity Strategy / StrategiesBased on the definitions from the previous lesson and usage of your vocabulary list, deducewhich of the above words is best for each scenario.______________________1. Paula found two white blouses she liked. One was made of 100% cotton and had simple buttons up the front. The other was 100% linen with short sleeves. The blouses cost $19.99 and $16.99.______________________2. Sarah was sure she wanted to work for a university or college. She made a list of all the universities and colleges in her area, and made it a point to check each ones job postings at least three days a week.______________________3. Costco and Smart-n-Final are popular stores in this area. Customers can save money shopping there if they are willing to buy in bulk.______________________4. Joe does not like to buy his coffee in cans at the local grocery store. He’d rather buy a few fresh coffee beans from a coffee bean roster every couple of days.______________________5. Jim loves his Rose-Royce. He uses nothing but the best gasoline he can buy.
  6. 6. Introduction to Small Business for ELL 1Exercise 12.2Complete the chart by naming a business that fits each pricing strategy. Type of Business Above Average Competitive Market Below Market Pricing Pricing Pricing Groceries Clothing Automobiles RestaurantsWritten by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 6
  7. 7. Exercise 12.3We will look at the websites of the businesses below. Decide if you think the business’ pricingstrategy will be above market, competitive, or below market. Then, explain why you selectedeach one Business Name and Web address Select a Pricing Explain why Design Hotel Deanza Above Market http://www.hoteldeanza.com/ Competitive Below Market Castro Valley Comfort Suites” Above Market http://www.cscastrovalley.com/ Competitive Below Market DeJardenia Living Floral Design Above Market http://www.dejardenia.com/ Competitive Below Market Gerry’s Country Rose Above Market http://www.gerrysflorist.com/ Competitive Below Market Crate and Barrel Above Market http://www.crateandbarrel.com/ Competitive Below Market Bed Bay & Beyond” Above Market http://www.bedbathandbeyond.com/ Competitive Below Market
  8. 8. Introduction to Small Business for ELLIntroduction to Product Pricing – Important Phrases Invoice price The price a business pays a manufacturer or supplier when they purchase products for resell. Selling price The customer’s purchasing price for a product. Markup Amount The difference between the selling price and the invoice price in DOLLARS. (Selling Price – Invoice Price = Markup Amount) Operating Costs All the expenses created in order to run a businessReading 13 - "Introduction to Pricing PRODUCTS: Simple Mathematics”American manufacturers often suggest the prices for which they believe their products shouldsell. This price, called the “Manufacturers Suggested Retail Price” (MSRP), is based on theaverage American business’ operating costs. The MSRP, however, is only a suggestion andbusiness cannot be forced to use it. If a business owner decides to use the MSRP, (s)he must usemathematics to make sure the suggested price is right for them.When businesses price their products, they are generally concerned with two figures: the cost ofthe merchandise (called the “invoice price”) and the price they will charge customers (called the“selling price”). The difference between these two amounts is called the “markup amount”. So,for example, if the invoice price of a toy is $12.00 per item, and the customer is charged $19.00per item, then the markup amount is $7.00 per item. Selling Price – Invoice Price = Markup Amount $19.00 – $12.00 = $7.00The amount of money gained in the markup must be enough to cover the businesses operatingcosts, plus make a profit. For this reason, determining the Markup Amount is the most importantstep in product pricing.The simplest way to calculate a products lowest possible markup amount, and thus the lowestpossible selling price, involves a three–step process. 1. Add up all of your operating costs for one month of business, making estimates for those expenses whose exact dollar amounts are not available. This is called the Monthly Operating Costs.Written by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 8
  9. 9. 2. Estimate the quantity of products you hope to sell in one month (base this estimate on your future sales expectations). This is called the Target Sales. 3. Divide the Monthly Operating Costs by the Target Sales. This will give you the Operating Costs per unit – also called the minimum Markup Amount. Monthly Operating Costs ÷ Target Sales = Operating Costs per unitOnce the Operating Cost per unit is calculated, it can be added to the invoice price. The endresult is the product’s minimum selling price. Using the same example of the toy with a $12.00invoice price per item, lets assume that the seller’s Monthly Operating Cost was $420.00, andtheir Target Sales were 60 toys a month. We can calculate the Operating Costs per unit as: Monthly Operating Costs ÷ Target Sales = Operating Costs Per Unit $420.00 ÷ 60 = $7.00 Then, add the $7.00 to the $12.00 invoice price, thus obtaining our selling price of $19.00: Operating Costs Per Unit + Invoice price = Selling Price $7.00 + $12.00 = $19.00Although this process is probably the most accurate way to price products, it can be very time-consuming if there are a lot of products being sold. Thus, many businesses use the Markup Ratemethod instead. With this method, businesses select a percentage rate, and simply markup theirproducts by that percentage. For example, suppose a store decided to markup all toys at a rate of50%. The toy with the $12.00 invoice price would end up with an $18.00 selling priced: Invoice Price + Markup Rate = Selling Price $12.00 + 50% = $18.00This selling price is slightly below the $19.00 calculation we previously made, so consequently itdoes not fully cover the operating expenses. The business will usually make up for thisdifference on the other products it sells.
  10. 10. Introduction to Small Business for ELLExercise 13.1Answer the following questions1. What does the acronym MSRP mean? ____________________________________________ ___________________________________________________________________________2. Is the seller required by law to use the MSRP? _____________________________________3. There is a simple way to calculate the minimum Markup Amount. How many steps are in this process? __________________________4. These steps are to: First: Add up all the _________________ _____________________ _______________ Second: Estimate the ______________________ __________________________ Third: Calculate the minimum Markup Amount by ____________________ these two numbers.5. However, many businesses use the ________________ ______________ method to price their products because it is easier and less time consuming.Written by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 10
  11. 11. Exercise 13.2Fill in the blanks. If the invoice price of a camera is $32.00 per item, and the selling price charged to customers is $59.00 per item, then the __________________ ________________ is $27.00 per item. If the _________________ _________________ of a book is $6.00 per item, and the selling price charged to customers is $16.00 per item, then the markup amount is $10.00 per item. If the invoice price of a TV is $49.00 per item, and the ______________ _______________ charged to customers is $65.00 per item, then the markup amount is $16.00 per item. If the invoice price of a necklace is $8.00 per item, and the selling price charged to customers is $15.00 per item, then the markup amount is $______________ per item. If the invoice price of a gold ring is $125.00 per item, and the markup amount is $78.00 per item, then the selling price charged to customers is $ _____________ per item. If the invoice price of a EZ-chair is $59.00, and the business applies a 30% markup rate to it, then the selling price charged to customers is $_________________. If the shoe store applies a 45% markup rate to sandals, then the selling prices of a sandal whose invoice price is$12.80 would be $_______________________.
  12. 12. Introduction to Small Business for ELLExercise 13.3Using these formulas, calculate the minimum Markup Amount and Selling Price for each Monthly Operating Costs ÷ Target Sales = Operating Costs per unit Invoice Price + Markup Amount = Selling Price *** Remember: the Operating Costs per unit is also the minimum Markup AmountDetails provided: What is the minimum What is the minimum Markup Amount per Selling Price per item? item?The Monthly Operating costs is: $300.00The Target Sales is: 100The per item Invoice price is: $9.00The Monthly Operating costs is: $680.00The Target Sales is: 80The per item Invoice price is: $49.00The Monthly Operating costs is: $500.00The Target Sales is: 20The per item Invoice price is: 100.00 Using Markup Rates, calculate the Selling Price for eachDetails provided: What is the selling priceThe Markup rate: 20%The per item Invoice price is: $70.00The Markup rate: 45%The per item Invoice price is: $28.00The Markup rate: 85%The per item Invoice price is: $12.00Written by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 12
  13. 13. APPENDIXSMALL BUSINESS RESOURCES
  14. 14. Introduction to Small Business for ELLVocabulary Lesson Write the Definitions belowAcronym 7Advertisement 1Assessed 8Brief 11Business contact 3Business industry 3Business Plan 10Business Services /Business 3ProductsBusiness Startup 3Commercial Zone 6Compare 12Compete 3Complex 11Comply 4Database 7DBA 7Demand 3Entrepreneur 1Exempt 7Written by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 18
  15. 15. Vocabulary Lesson Write the Definitions belowResidential Zone 6Sacrifice 2Sacrifice personal comforts 2Sales Taxes 8Self-disciplined 2Self-managed 1Self-motivated 2Self-starter 2Selling price 13Shareholder 9Simple 11Strategy/Strategies 12Structure 9Surname 7Tangible Goods 8Taxable items 8Unincorporated cities 5Venture 2Violate 5
  16. 16. How well do you understand the following topics about Small Business Ownership?Circle the number that best corresponds1 = I have never heard of this topic2 = I’ve heard about it, but I don’t know anything about it3 = I know a little about it4 = I know about it well enough5 = I know about this topic pretty well The Personality Traits of an Entrepreneur 1 2 3 4 5 One who is innovative, creative, a risk-taker, organized, self-disciplined… Networking 1 2 3 4 5 Talking to other business people, attending Networking Events… Legal Requirements 1 2 3 4 5 Business licenses 1 2 3 4 5 Zoning clearances 1 2 3 4 5 Fictitious Business Names 1 2 3 4 5 Seller’s Permits Ownership Structures 1 2 3 4 5 Sole proprietorships 1 2 3 4 5 General partnerships 1 2 3 4 5 Limited Liability partnerships 1 2 3 4 5 Corporations Business Plans 1 2 3 4 5 Coversheets 1 2 3 4 5 Business Descriptions 1 2 3 4 5 What makes up a business plan (the elements of a business plan) Product Pricing 1 2 3 4 5 Pricing strategies: Above market, completive market, below market 1 2 3 4 5 Calculating operating cost 1 2 3 4 5 Target sales 1 2 3 4 5 Invoice prices and Selling prices 1 2 3 4 5 Markup Amount and Markup Rate
  17. 17. Introduction to Small Business for ELLCourse Final QuestionnaireDuring the course of this class…1. What new word and phrased did you learn?2. What new ideas did you gain?3. What information did you find most interesting and helpful?4. What information did you find least interesting and helpful?5. What did you learn about starting a Small Business?6. What do you think about the legal requirements of owning a business in California?7. What math skills did you learn?8. What math lesson was most helpful?9. What math lesson was least helpful?10. What new ideas do you have about customer services?11. What did you learn about working in teams?12. What would you like to learn about next?13. What did you like about the class?14. What did you dislike?Written by: Michelle Y. Riley for New Haven Adult School – EL Civics & Business Education: 2003Property of: New Haven Adult School Page 26

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