UNIT II/LESSON 1 Generating Ideas for a Business Time Frame: 2 days Standards NES: The Business Plan: Learn techniques for gathering information used in a business plan NES Skills: Follow directions Apply effective listening skills Make oral presentations Prepare written reports Guiding Question What is the best way to come up with ideas for a business? Materials Handouts II.1.A-­‐E Instructional Objectives Students will be able to: 
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Assess their own experiences/skills/preferences as a guide to generating business ideas. 
Discuss brainstorming as a technique for generating business ideas. Look outside themselves, at the experiences of other entrepreneurs and customer preferences, to generate business ideas. Teacher Background A team of researchers from Rensselaer Polytechnic Institute in New York examined the following questions: How do individuals come up with ideas for a business? And how do they turn those ideas into long-­‐term, sustainable, profitable ventures? These researchers found that most of the ideas behind successful business ventures came from "happy accidents" rather than some ongoing process to generate ideas. In more than a few cases, individuals or small groups were simply “freelancing,” working on ideas on their own initiative rather than being directed by some “new venture” board or other idea management system. Ultimately, great business ideas are hatched using a combination of approaches involving both looking inward at one’s own experiences and talents and outward at customer preferences and commercial ventures developed by others. Handout II.1.A presents information about the background and experiences of Milton Hershey, the founder of the chocolate company, and asks students to identify the factors that led to his success. Students make a self-­‐survey of their own background/talents/interests and match them with career opportunities in Handout II.1.B. Handout II.1.C presents three strategies that demonstrate how to gather research about customers’ likes and dislikes, learn about experiences of other entrepreneurs, and investigate other sources for generating business ideas. Finally, Handout II.1.D the class examines brainstorming as an approach to getting into business in and engages in a brainstorming exercise. THE BUSINESS PLAN “The business of America is business” –Calvin Coolidge UNIT II / LESSON 1: page 2 Teaching Strategies/Supporting Activities 
Distribute Handout II.1.A, “Background.” Have students complete the exercise on the handout, then have them explain their answers to the following: – What did you learn about Milton Hershey from this account? – Describe one factor related to Hershey’s own background, experiences, or talents that led him to go into the chocolate candy business. – Describe one factor related to the experiences of others or customers’ preferences that led Milton Hershey to go into to the chocolate candy business. – What conclusions can you draw about the best way to come up with a business idea based on what you learned about Hershey? 
Distribute Handout II.1.B, “Examine Yourself.” Have students follow the directions to completing the handout, then call on 4-­‐5 volunteers to explain their answers to the following: – What did you find out about yourself and your interests after filling in the information called for on this handout? – Based on this exercise what business ideas did you come up with it? – To what extent would this be a useful exercise for someone looking to come up with a business idea to pursue? 
Distribute Handout II.1.C, “Learning from Others.” Have students explain their answers to the following: – What does handout tell us about how we can learn from other people’s experiences and preferences about ideas for a business? – Which of the three strategies on this handout do you think would prove the most valuable in getting ideas about a business? 
Distribute Handout II.1.D, “Brainstorming.” Divide the class into groups of five each. Have students, working in their groups, complete the exercise on the handout. After each group makes its presentation have them explain their answers to the following: – What are the essential elements involved in brainstorming? – What did you find to be the most positive aspects of brainstorming in deciding upon a business idea? – What would you see as the downside of engaging in brainstorming to find a business idea? – To what extent did the use of brainstorming help or prevent you from coming up with this idea? – Which of the business ideas that you heard about in the presentations has the greatest chance to succeed? THE BUSINESS PLAN “The business of America is business” –Calvin Coolidge UNIT II / LESSON 1: page 3 Summary/Assessment Ask students to explain their answer to the following question: From what you learned in this lesson, what is the best way to come up with an idea for a business? Follow-­Up 
Distribute Handout II.1.E, “Assignment.” Review this assignment with students, and provide them with sufficient time to complete it and submit it for grading. On the day the assignment is due, have students discuss their findings in class. Then, ask students to explain their answers to the following: – Do you think the better way to generate business ideas is to look inward at one’s background/interests/talents or outward at customer preferences and the experiences of others?