Essentials of Mathematics 11 -
Business Plan

This sub-organizer contains the following sections:
Prescribed Learning Outcomes
Suggested Instructional Strategies
Suggested Assessment Strategies
Recommended Learning Resources

PRESCRIBED LEARNING OUTCOMES

It is expected that students will prepare a plan and operate a successful business

It is expected that students will:

• prepare a business plan to own and operate a business that includes the following information as appropriate:
  • monthly cost of operation (e.g., inventory, rent, wages, insurance, advertising, loan payments, etc.)
  • hours of operation
  • estimated daily sales (average)
  • gross/net profit
  • hourly earnings
• draw a scale floor plan of the store

SUGGESTED INSTRUCTIONAL STRATEGIES

Realistic activities involving the research and design of a business plan enable students to recognize the connections between mathematical skills they have learned and the concrete situations these skills represent. An understanding of procedures and applications of mathematics can help students make reasonable business decisions.

• Have students choose a business in their community at which they might like to work, and interview the owner or manager. Ask them to report their findings to the class, including the following information:
  • size of the store including inventory storage
  • number of staff
  • hours of operation
  • type of clientele
  • special features of the store (e.g., service, price, inventory)
• Ask each student to choose the inventory for a self-owned business from a store catalogue. After choosing their inventories, students set criteria for their businesses, including retail prices and costs of:
  • purchasing the inventory
  • rental of floor space
  • insurance and utilities (rough estimates)
  • staffing
  • advertising and promotion
• Have students develop a business plan, including:
  • estimates of gross revenue and gross profit
  • estimates of daily profit and annual profit
• Discuss the following questions as a class:
  • What are the advantages and disadvantages of operating your own business?
  • What are the advantages and disadvantages of working for others?
  • What mathematical skills do you need to operate your own business?
• Invite a business owner and/or operator to discuss with the class how he or she manages the business. Have students prepare questions related to the topic beforehand.
• Have students investigate real-world situations by comparing their business plans with the plans of established businesses.

SUGGESTED ASSESSMENT STRATEGIES

The study of a business plan provides an excellent opportunity for students to demonstrate their mathematical knowledge in a meaningful fashion. The plan to own and operate a successful business can connect students’ understanding of the underlying mathematics to relevant and practical applications.

Collect

• Have students identify factors that might contribute to the success of their model businesses.
• Work with students to develop criteria and use them to assess their plans for their businesses. Criteria might include:
  • Will the business have sufficient space for inventory?
  • Will the business have enough staff to operate properly?
  • Are all costs considered, including rent, utilities, wages, insurance and advertising?
  • Are the identified daily sales and profit figures reasonable?

Self-/Peer Assessment

• Have students assess peer business plans, to determine whether the factors considered are relevant and/or important, and to propose other factors.

Question

• Ask students to what extent they have considered non-inventory costs such as franchise, advertising costs, environmental factors, and business location.

RECOMMENDED LEARNING RESOURCES

Comprehensive learning resources for this course are currently under development. As an interim measure, schools are encouraged to use the teacher-developed learning resources distributed to schools (student and teacher resources). Please note that the student materials require photocopying for student use.

Print Materials

• Math Projects: Organization, Implementation, and Assessment

Software

• Hot Dog Stand: The Works

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Maintained by: Mathematics Coordinator
Revised: November 22, 2000

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