Lesson Notes By Weeks and Term v5 - Grade 7

Lesson Video

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Performance objectives

• Identify at least three potential business ideas in your community.
• Describe the difference between a business idea and a business opportunity.
• Create a simple business plan for your idea.
• Explain the importance of a target market.
• Calculate basic start-up costs and potential revenue.

Lesson summary

This week, we're diving into the exciting world of business! We'll be learning how to come up with brilliant business ideas, spot opportunities right under our noses, and create simple business plans to turn those ideas into reality. Why is this important? Because understanding business basics can empower you to solve problems in your community, create jobs for yourself and others, and contribute to South Africa's economy. Imagine identifying a need in your neighbourhood – like a lack of healthy snacks at the local tuck shop – and starting a small business to fill that gap. That's the power of understanding business!

Lesson notes

Business Ideas vs. Business Opportunities A business idea is a thought or concept for a product or service you could offer. It's the initial spark. A business opportunity is a business idea that has the potential to be successful. It's an idea that meets a need or want in the market, is feasible to implement (you have the resources and skills), and can generate profit.

Example: Business Idea: Selling sweets.

Business Opportunity: Selling healthy fruit snacks and juices at the local sports field, because there are no healthy options currently available and many parents are looking for healthier alternatives for their children after sports practice. What makes a good business opportunity?

Solves a Problem or Fills a Need: Does it address a real need or want in the market?

Feasibility: Can you actually do it? Do you have the skills, resources (money, equipment, time), and access to suppliers?

Profitability: Can you sell your product/service for more than it costs to produce or provide it?

Competition: What other businesses are offering similar products/services? How can you be different and better?

Target Market: Who are you selling to? Do they have the ability and willingness to pay for your product/service? Simple Business Plan A business plan is a written document that describes your business, its objectives, strategies, market, and financial forecasts. It's like a roadmap for your business. A simple business plan for Grade 7 can include these sections: Business Name and Description: What is the name of your business? What product or service will you offer?

Target Market: Who are your customers? (Age, location, interests, etc.)

Products/Services: Describe your product or service in detail.

Marketing: How will you tell people about your business? (Word of mouth, flyers, social media, etc.)

Start-up Costs: How much money will you need to start your business? (Ingredients, equipment, materials, etc.)

Pricing: How much will you charge for your product or service? Why?

Potential Revenue: How much money do you expect to make? (Estimate based on sales volume and pricing).

Example: Let’s say you want to start a small business making and selling beaded bracelets.

Business Name: "Beadz 4 U" Description: We create and sell unique, handmade beaded bracelets for kids and teens.

Target Market: School children aged 8-18 in our local community.

Products/Services: Beaded bracelets in various colours and designs, including custom designs.

Marketing: We will display bracelets at the school tuck shop, use word-of-mouth, and create a simple Instagram page to showcase our designs.

Start-up Costs: Beads: R50 Elastic string: R20 Packaging (small bags): R30 Total: R100 Pricing: R15 per bracelet (Reasoning: covers costs and allows for a small profit).

Potential Revenue: If we sell 20 bracelets per week, we could earn R300 per week (20 bracelets x R15/bracelet = R300). Calculating Start-Up Costs and Potential Revenue Start-up costs are the expenses you need to pay to get your business started. Potential revenue is the income you expect to generate from selling your product or service.

Example: Thabo wants to start a car washing business in his neighborhood.

Start-up Costs: Bucket: R40 Sponge: R20 Soap: R50 Cloth: R30 Total: R140 Pricing: R50 per car wash.

Potential Revenue: If Thabo washes 5 cars per week, his potential revenue is R250 per week (5 cars x R50/car = R250). Guided Practice (With Solutions)

Question 1: Sarah notices that many people in her community walk to work or school and are often thirsty. She wants to start a business selling bottled water. Is this a business idea or a business opportunity? Explain your answer.

Solution: This is potentially a business opportunity, but it needs further investigation. It's an idea because Sarah has identified a need (thirst). To determine if it's a viable opportunity, she needs to consider: Competition: Are there already many people selling bottled water?

Pricing: Can she sell water at a price people are willing to pay and still make a profit?

Regulations: Does she need any permits to sell water publicly?

Supply: Can she reliably source bottled water at a reasonable cost?

Question 2: David wants to start a business selling homemade cookies. List three possible start-up costs he might incur.

Solution: Possible start-up costs for David's cookie business: Ingredients: Flour, sugar, butter, eggs, chocolate chips, etc.

Equipment: Mixing bowls, baking trays, oven (if he doesn't already have one), measuring cups and spoons.

Packaging: Bags or containers for selling the cookies.

Question 3: Aisha wants to sell beaded necklaces at her school's market day. Her start-up costs are R80 for beads and R20 for clasps. She plans to sell each necklace for R

3

0. If she sells 10 necklaces, what is her potential revenue?

Solution: Potential Revenue = (Price per necklace) x (Number of necklaces sold) Potential Revenue = R30/necklace x 10 necklaces = R300 Aisha's potential revenue is R300.