School-Based Enterprise Development:
Planning, Implementing, and Evaluating 

Peter Gamache, MBA & Jordan Knab, Ed.S.
Bureau of Exceptional Education and Student Services
Florida Department of Education
2008

This is one of many publications available through the Bureau of Exceptional Education and Student Services, Florida Department of Education, designed to assist school districts, state agencies that support educational programs, and parents in the provision of special programs for exceptional students. For additional information on this publication, or for a list of available publications, contact:
Clearinghouse Information Center
Florida Department of Education
Room 628, Turlington Building
325 West Gaines Street 
Tallahassee, Florida 32399-0400  
Telephone: (850) 245-0477 
Fax: (850) 245-0987 
SunCom 205-0477 
E-mail: cicbiscs@fldoe.org 
Web site: http://www.fldoe.org/ese

School-Based Enterprise Development:
Planning, Implementing, and Evaluating 
Bureau of Exceptional Education and Student Services
Division of Public Schools
Florida Department of Education
2008
Florida Department of Education 
Bureau of Exceptional Education and Student Services 
Bambi J. Lockman, Chief 
Kathy T. Dejoie, Program Director, Clearinghouse Information Center

This work is funded by the Florida Mental Health Institute (FMHI) and the University of South Florida (USF), and through grants awarded to FMHI/USF from the Florida Department of Education (2006-07, 291-2628A-8CD08).

The purpose of this document is to provide a practical application for developing (planning, implementing, and evaluating) school-based enterprises.  The information contained within can also be used to:  
•	Draft literature-supported introductions when applying for grants
•	Provide rationales for starting or supporting a school-based enterprise 
•	Discuss or research best or promising practices related to transition-aged youth and young adults 
•	Create classroom exercises for real-world scenarios 

The intended audience for this series includes school and program personnel, including teachers, vocational rehabilitation counselors, employment specialists, guidance counselors, mental health specialists, and juvenile justice personnel who work with transition-aged youth and young adults.
 
Copyright
State of Florida
Department of State
2008

Authorization for reproduction is hereby granted to the State System of Public Education as defined in Section 228.041 (1), Florida Statutes. No authorization is granted for distribution or reproduction outside the State System of Public Education without prior approval in writing. 

School-Based Enterprise Development:
Planning, Implementing, and Evaluating
Written by:
Peter Gamache, MBA, MLA, MPH
Jordan Knab, Ed.S.
Desktop Publishing by:
Marianne Sarkis, MA

Table of Contents 
Overview: School-Based Enterprise
Chapter 1: Background
Current Trends and Supportive Policy Efforts
Economic, Social, and Educational Skills Development
Goals for Evaluation
Sunshine State Standards
School-Based Enterprise Examples
Chapter 2: Phase I—Planning
Step 1: Name and Logo Selection
Classroom Exercise: Step 1: Thinking About Names
Step 2: Mission, Vision, and Values
Classroom Exercise: Step 2:   Mission, Vision, and Values
Step 3:   Management Team and Oversight Structure
Classroom Exercise: Step 3: What Makes Good Leaders?
Step 4:  Target Market Selection
Classroom Exercise: Step 4: Knowing the Neighborhood
Step 5: Product, Service, or Message Positioning
Classroom Exercise: Step 5: Quantity and Quality
Step 6: Positioning
Classroom Exercise: Step 6: Too High or Too Low?
Step 7:  Promotion
Classroom Exercise: Step 7: Selling Points
Step 8: Place and Logistics
Classroom Exercise: Step 8: When and Where to Be “with” Customers
Step 9:  Start-up Feasibility & Viability
Classroom Exercise: Step 9: Brainstorming Start-up Needs
Chapter 3: Phase II – Implementing
Step 1:  Gaining Support through Social Marketing
Classroom Exercise: Exercise 1: Compare and Contrast
Step 2:  Recurrent Evaluations
Classroom Exercise: Exercise 2: Reporting is Boring Without Informing
Step 3:  Daily Operations and Process Refinement
Classroom Exercise: Exercise 3: From One-to-One to One-to-Many
Step 4:  Communication Structures and Methods
Classroom Exercise: Exercise 4: Positive Communication
Step 5:  Sales Forecasting
Classroom Exercise: Exercise 5: Expectations versus Reality
Step 6:  Accounting, Cash Management, and Budgeting
Classroom Exercise: Exercise 6: Inflows and Outflows
Step 7:  Emerging Market Expansion or Retraction
Classroom Exercise: Exercise 7: Market Makers and Takers
Step 8:  Partnering and Vendor Relationships
Classroom Exercise: Exercise 8: Potential Partners
Chapter 4: Phase III – Evaluating
Step 1:  Goal Outcomes and Impact
Classroom Exercise: Activity 1: Right on Target or Room for Growth?
Step 2:  Social Validity
Classroom Exercise: Activity 2: Effectiveness and Efficiency
Step 3:  Sustainability Development
Classroom Exercise: Activity 3: Onward and Upward
Chapter 5: Discussion
Discussion
References
Appendix
General Resources on Enterprise Development
Relevant Web sites and Resources

Table of Figures
Figure 1. The need for different skill sets are relative to their positional context.
Figure 2. A micro-enterprise supervised by a teacher and led by students can become a successful micro-enterprise, such as the aviary project undertaken by a school in Florida.
Figure 3. Steps to planning a school-based enterprise
Figure 4. Sample enterprise management structure
Figure 5. Ladder of Participation model developed by Roger Hart (2002)
Figure 6. Daily Expenses (Fixed, Variable, and Total) and Revenues
Figure 7. Weekly Break-Even Estimate from Cumulative Revenues and Expenses
Figure 8. Program Highlight. Example Source: Brookner, 2007
Figure 9. “Fishbone” or Ishikawa Cause-and-Effect Diagram
Figure 10. Example of chart showing time intervals

Classroom Exercises
Classroom Exercise! Step 1: Thinking About Names
Classroom Exercise! Step 2:   Mission, Vision, and Values
Classroom Exercise! Step 3: What Makes Good Leaders?
Classroom Exercise! Step 4: Knowing the Neighborhood
Classroom Exercise! Step 5: Quantity and Quality
Classroom Exercise! Step 6: Too High or Too Low?
Classroom Exercise! Step 7: Selling Points
Classroom Exercise! Step 8: When and Where to Be “with” Customers
Classroom Exercise! Step 9: Brainstorming Start-up Needs

Classroom Exercise! Exercise 1: Compare and Contrast
Classroom Exercise! Exercise 2: Reporting is Boring Without Informing
Classroom Exercise! Exercise 3: From One-to-One to One-to-Many
Classroom Exercise! Exercise 4: Positive Communication
Classroom Exercise! Exercise 5: Expectations versus Reality
Classroom Exercise! Exercise 6: Inflows and Outflows
Classroom Exercise! Exercise 7: Market Makers and Takers
Classroom Exercise! Exercise 8: Potential Partners

Classroom Exercise! Activity 1: Right on Target or Room for Growth?
Classroom Exercise! Activity 2: Effectiveness and Efficiency
Classroom Exercise! Activity 3: Onward and Upward

Overview: School-Based Enterprise
Enterprise skills can be taught and reinforced through classroom exercises. 
The cornerstone of many school-based programs—ranging from Vocational Rehabilitation and School-to-Work initiatives to school and community collaborations or partnerships, internship arrangements, service-learning, youth development programs, and micro-enterprise—is the achievement of self-sufficiency through economic advancement.
While personal work task and behavioral management skills receive emphasis as “human capital,” the general consensus among employers, policymakers and government department personnel (e.g., Greenspan, 2000; SCANS, 1991), and researchers (e.g., RAND, 2004) of what is needed of students in an increasingly globalized, culturally diverse and developing society is adaptability, cultural and linguistic competence (cultural capital), and social skills (social capital) (Bricout, 2003; Nishioka & Bullis, 2002; Bullis & Fredericks, 2002; National Career Development Association, 1999).
Within human capital alone, different levels of the importance of certain skills depend on position.  Since a school-based enterprise requires a great deal of management and students will assume multiple roles that can be thought of as top, middle, or lower-level, the following skills diagram illustrates the recognition that the need for different skill sets are relative to their positional context. 
The cornerstone of many school-based programs is the achievement of self-sufficiency through economic advancement. 
Figure 1. The need for different skill sets are relative to their positional context.

For top management, conceptual skills are the most important. 
For middle management, human skills are the most important.
For lower-levels, technical skills are the most important. 
Adapted from Robins & Coulter, 1999 
Chapter 1: Background 
In this section, you will learn about:
•	Current trends and supportive policy efforts 
•	Economic, social, and educational skills development
•	Sunshine State standards
•	School-based enterprise examples

Current Trends and Supportive Policy Efforts 
Long-term skills development linked to choice is an important feature of school-based programs that seek to improve outcomes for youth with Emotional Behavioral Difficulties (EBD).
“The most compelling reason to embrace self-employment as an option for [people with disabilities]” is their oft-repeated statement, “’It’s my choice, it’s what I want to do.’” (Callahan, Shumpert, & Mast, 2002).
Beginning in 1985, the Office of Special Education and Rehabilitation Services (OSERS) awarded “community-based, supported employment” service grants to states to fund movement away from “facility-based, sheltered workshop and day activity programs” (Sowers, McLean, & Owens, 2002, p. 96).  Additionally, vocational rehabilitation agencies have been able to support self-employment options for people with disabilities since the 1997 re-authorization of the federal Rehabilitation Act.  
Factors enabling this trend include a heightened emphasis on choice commensurate with philosophical shifts in disabilities theory involving person-centered planning and natural supports (Holburn & Vietze, 2002; Nisbet & Hagner, 2000; Kincaid, 1996).  Research in this area has evolved from emphasizing sheltered workshop and supported employment to supported self-employment strategies (Okahashi, 2001; Arnold & Seekins, 2002), and advocates are successfully challenging long-standing assumptions about people with disabilities in the workplace (McMillan, 2000).
Countering self-employment efforts at the ground level is risk avoidance by participants with disabilities and discouragement by their supporters because of fear of participant isolation, inexperience, externally perceived motivation, new business failure statistics, limited financial resources, and the complexities of running a business being seen as exceedingly difficult or insurmountable (Callahan, Shumpert, & Mast, 2002; Hagner & Davies, 2002).  However, Callahan, Shumpert, & Mast (2002, p. 76) cite “the most compelling reason to embrace self-employment as an option for [people with disabilities]” is their oft-repeated statement, “It‘s my choice, it‘s what I want to do.”
Long-term skills development linked to choice is an important feature of school-based programs that seek to improve outcomes for youth with emotional behavioral difficulties (EBD).  These youth tend to experience poor postsecondary outcomes in employment, vocational/college education, incarceration, and many other major life domains (National Organization on Disability and Harris Survey of Americans With Disabilities, 2004; Vander Stoep, Davis, & Collins, 2000; Wagner, Cameto, & Newman, 2003).  Special education students, faced with limited employment experiences and dysfunctional career thoughts involving low self-esteem and confidence, have a critical need to retain and transfer knowledge gained in school (Lustig & Strauser, 2003; Saunders, Leahy, & Frank, 2000; Gersten & McInerney, 1997).
Stern et al. (1994) defines school-based enterprise (SBE) as “any activity through which students produce goods or services for sale to or use by people other than themselves (p. 3).” Although limited, this definition provides a starting point.  This module will utilize the following expanded working definition:  
A school-based enterprise is a set of entrepreneurial activities undertaken by students that provides an economic, social, and educational return to the student, school, and community.  Student efforts are designed to enhance personal responsibility, an appreciation of risk versus reward, and confidence in achieving and maintaining independence.
This module will discuss the components, considerations, and targeted outcomes for starting and sustaining a school-based enterprise.  Additional resources that monitor the development of micro-enterprise theory, practice, and evaluation, in addition to websites containing program examples, toolkits, and curriculum guides for further learning, are provided within the appendix on pages 57 through 59. 
Economic, Social, and Educational Skills Development 
Examples of skills gained from micro-enterprise involvement, reinforced through classroom exercises, include the following elements of human, social, and cultural capital:  Each can be preceded by “increased”‖ to emphasize improvement.  Similarly, “decreased” can be used to correct negative habits and developmental barriers, although this represents a deficits rather than assets or strengths-based approach (Larsen, n.d.; Maton, Schellenbach, Leadbeater, & Solarz, 2004).  If a deficits-based approach is necessary, then the use of these positive skills can be related to negating risks to personal and social health and safety (e.g., drug use, delinquency) listed in the goals section that follows.  
Figure 2. A micro-enterprise supervised by a teacher and led by students can become a successful micro-enterprise, such as the aviary project undertaken by a school in Florida. 
Picture of a teacher and student reaching into a bird cage while working at aviary. 
Business Management Skills
•	Money management (financing/budgeting)
•	Marketing
•	Product/service/message development
•	Pricing
•	Promoting
•	Placement and logistics
•	Computer software proficiency
•	An appreciation of economics (e.g., supply and demand)
•	An understanding of time as an economic constraint 
•	An understanding of formal and informal organizations
•	An appreciation of risk/reward
•	An appreciation of planning and decision-making within and beyond day-to-day operations
•	Record-keeping and accounting
Social and Communication Skills
•	Relationship/teamwork building
•	Negotiating/compromising
•	Dispute resolution
•	Leadership and mentoring
•	Training and positive/correctional feedback
•	An appreciation of differences in motivation
•	An understanding of authority and delegation
•	An appreciation of dependability as a two-way relationship
•	Exposure to diverse perspectives
•	Community awareness
•	Public speaking and involvement
Analytical Skills
•	Organizing and prioritizing activities
•	Decision making with a recognition of constraints
•	Creating multiple solutions to unfamiliar situations
•	Critical thinking and problem-solving
•	Creativity and adaptability in finding a “better way”
•	Determination in problem-solving
Personal Skills
•	Self-reliance and self-advocacy
•	Self-esteem, self-confidence, and self-determination
•	Goal development
•	Hopefulness
•	Identity development 
•	An appreciation of time and time management
•	An understanding of planning and organizing
•	An understanding of accountability and responsibility
•	Multi-tasking and prioritization 

Goals for Evaluation
Measures for each of the following goals make clear how the youth and program will be held accountable.  Specific goals with the use of “stretch goals” that are above and beyond these targets will establish an achievement hierarchy. 
Quantitative scales such as 0 – 3, 1 – 5,  1 – 10, etc. will need to be operationalized. Examples include:
0 = Not at all	1 = Some	2 = A lot	3 = Completely
1 = Very unsatisfied	2 = Unsatisfied 	3 = Neutral 	4 = Satisfied	5 = Very satisfied
5 = Far exceeded 	4 = Exceeded	3 = Met 	2 = Nearly met	1 = Not met
Academic Achievement 
•	Increased attendance  
•	Increased engagement 
•	Increased GPA 
•	Increased learning opportunities 
•	Decreased drop-out rates 
Employment Achievement 
•	 Decreased turnover (time continuously involved)
•	 Increased roles and responsibilities (autonomous decision-making) 
•	 Increased wages and benefits 
Relationships and Reciprocity  
•	Increased intergenerational understanding 
•	Increased cross-cultural understanding 
•	Increased understanding of interdependency (work sharing contributions) 
•	Decreased social distance 
Cognitive Performance 
•	Increased career awareness opportunities 
•	Increased decision-making skills 
•	Increased critical-thinking skills 
•	Increased personal competence (strengths and areas for development) 
Beliefs, Attitudes and Values 
•	Increased self-esteem 
•	Increased self-efficacy 
•	Increased motivation 
•	Increased feelings of empowerment 
•	Decreased bias (generalizing)
Health and Well-Being 
•	Resistance to negative peer pressure 
•	Increased stress management skills 
•	Decreased risk-behaviors 
•	Physical and mental health improvement through activities 
•	Safety 
•	Primary, secondary, and tertiary prevention (for an expanded discussion, see Walker & Shinn, 2002) 
Civic Engagement 
•	Increased civic interest 
•	Increased civic participation 
•	Increased school and community linkages 

Prioritizing these measures can be difficult, but their selection should be undertaken by a team approach that includes the youth as the decision-maker (Wehmeyer, 2002). 

Sunshine State Standards 

There are many Sunshine State Standards that are reflected by SBE activities.  Academic subject areas for grades 9-12 that are particularly applicable include: 
Language Arts 
Reading 
Standard 1: The student demonstrates the ability to read grade level text orally with accuracy, appropriate rate, and expression. 
Standard 2: The student uses multiple strategies to develop grade appropriate vocabulary. 
Standard 3: The student uses a variety of strategies to comprehend grade level text. 
Standard 4: The student identifies, analyzes, and applies knowledge of the elements in a variety of nonfiction, informational, and expository texts to demonstrate an understanding of the information presented. 
Writing 
Standard 1: The student will use prewriting strategies to generate ideas and formulate a plan. 
Standard 2: The student will write a draft appropriate to the topic, audience, and purpose. 
Standard 3: The student will revise and refine the draft for clarity and effectiveness. 
Standard 4: The student will edit and correct the draft for standard language conventions. 
Standard 5: The student will write a final product for the intended audience. 
Standard 6: The student develops and demonstrates technical writing that provides information related to real-world tasks. 
Communication 
 Standard 1: The student engages in the writing process and writes to communicate ideas and experiences. 
 Standard 2: The student effectively applies listening and speaking strategies. 
Information and Media Literacy 
Standard 1: The student comprehends the wide array of informational text that is part of our day to day experiences. 
Standard 2: The student uses a systematic process for the collection, processing, and presentation of information. 
Standard 3: The student develops and demonstrates an understanding of media literacy as a life skill that is integral to informed decision making. 
Mathematics 
Algebra 
Standard 1: Relations and Functions.  Students draw and interpret graphs of relations. They understand the notation and concept of a function, find domains and ranges, and link equations to functions. 
Standard 2: Linear Equations and Inequalities. Students solve linear equations and inequalities. 
Standard 3: Rational Expressions and Equations. Students simplify rational expressions and solve rational equations using what they have learned about factoring polynomials. 
 Standard 4: Mathematical Reasoning and Problem Solving. In a general sense, all of mathematics is problem solving. In all of their mathematics, students use problem-solving skills: they choose how to approach a problem, they explain their reasoning, and they check their results. 
Discrete Mathematics 
Standard 1: Recursion.  Students understand and apply recursive methods to solve problems, including the use of finite differences. 
 Standard 2: Graph Theory. Students understand how graphs of vertices joined by edges can model relationships and be used to solve various problems with relation to directed graphs, weighted graphs, networks, tournaments, transportation flows, matching, and coverage. 
 Standard 3: Linear Programming. Students understand how to use linear programming and coordinate geometry to solve simple linear optimization problems. 
Financial Literacy 
Standard 1: Simple and Compound Interest 
Standard 2: Net Present and Net Future Value (NPV and NFV) 
Standard 3: Loans and Financing 
Standard 4: Individual Financial and Investment Planning 
Standard 5: Economic Concepts 

Social Studies 
People, Places, and Environments [Geography] 
Standard 1: The student understands the world in spatial terms. (SS.B.1.4) 
Standard 2: The student understands the interactions of people and the physical environment. (SS.B.2.4) 
Economics 
Standard 1: The student understands how scarcity requires individuals and institutions to make choices about how to use resources. (SS.D.1.4) 
Standard 2: The student understands the characteristics of different economic systems and institutions. (SS.D.2.4) 

The Arts 
Visual Arts 
Skills and Techniques 
Standard 1: The student understands and applies media, techniques, and processes. (VA.A.1.4) 
Creation and Communication 
Standard 1: The student creates and communicates a range of subject matter, symbols, and ideas using knowledge of structures and functions of visual arts. (VA.B.1.4) 
Cultural and Historical Connections  
Standard 1: The student understands the visual arts in relation to history and culture. (VA.C.1.4) 
Aesthetic and Critical Analysis
Standard 1: The student assesses, evaluates, and responds to the characteristics of works of art. (VA.D.1.4) 
Applications to Life 
Standard 1: The student makes connections between the visual arts, other disciplines, and the real world. (VA.E.1.4) 
(Florida Department of Education, 2007a) 
Additional micro-enterprise examples can be found on the Distributive Education Clubs of America (DECA) publication entitled “School-Based Enterprise Project Best Practices,” available at http://www.schoolbasedenterprises.org/pdf/SBEbestpractice.pdf (DECA, 2001). 

School-Based Enterprise Examples 
 The list below includes examples of micro-enterprise sale items categorized as products, services, or messages. The U.S. economy is characterized as increasingly “service-based”‖ and “knowledge based” rather than “product-based” (Boden, 2001).  The implication for this trend is that services have become necessary to gain and maintain customers.  In the list below, think about which could include “customer service” components, such as cleaning or guarantees for repairs to enhance relationships, quality, and revenues. 
Products 
The selection of products is primarily dependent on per-unit margin (cost of materials and labor versus retail price).  Margin determines whether it is worth creating products or sourcing from a wholesaler, for example.
An additional consideration is licensing.  If an enterprise is to sell concession items, a city or county may require a limited food and beverage permit for pre-packaged foods and beverages that would involve limited regulation (e.g., health department inspections, paperwork) and costs (e.g., sanitation stations, disposable containers). 
•	Furniture (e.g., chairs, picnic tables, lawn ornaments)
•	Sewing products (e.g., pillows, dolls/toys)
•	Clothing (e.g., T-shirts)
•	Themed items (e.g., sports team, holiday)
•	Greeting cards
•	Jewelry (e.g., beaded necklaces, bracelets) 
•	Bird feeders
•	Food (culinary) and beverage items such as a concession stand
•	Agricultural (horticultural) products (e.g., flowers)
•	Gift wrapping
•	Accessories and miscellaneous items (e.g., picture frames, drink coasters)

Services 
Services are generally labor intensive and require low inventory levels.  Reputation and experience, weighed against competition, can increase per-unit margin.  The main difference between products and services is tangibility.  Time, for example, can be charged for producing a service.  Examples include: 
•	Computer repair
•	Software training
•	Web site design
•	Graphics work
•	Desktop publishing
•	Logo creations
•	Transcription
•	Auto or machine repair and maintenance
•	Carwash/detailing
•	Lawn care and landscaping
•	Animal care
•	Child care
•	Cleaning 
•	Clerical staffing 
•	Tutoring 
Messages
Messages are intended to change awareness, attention, and actions.
Media materials—including paper, Web sites, paint, etc.—can be either tangible or intangible, yet the messages that are communicated represent valuable ideas to the purchaser.  For example, a local health department is conducting a campaign to reduce youth nicotine addiction and is in need of materials that are developed by youth.  
Messages are by far the most difficult to sell and include the following examples:  
•	Awareness (e.g., drug prevention, smoking cessation, conservation) 
•	Promotions (e.g., store window displays, artwork)
•	Independent newspaper or news source

It should be noted that there is significant resistance to the “four Fs”‖: Food (preparation and delivery), filth (cleaning), flowers (landscaping and décor), and factories (assembly) as representing limited expectations and gains.  
Low-wage, part-time jobs that offer limited or no benefits are a constant concern for all youth, yet even jobs classified as belonging to the “four Fs” can provide a baseline for youth to investigate their likes and dislikes while being encouraged to take on additional responsibilities for upward mobility.
As one advocate has said: “we want to see people. . . promoted up the ladder” (Earnest, 1998).

Chapter 2: Phase I—Planning
In this section, you will plan a school-based enterprise by following these ten steps: 
 Step 1:   Name Selection 
 Step 2:   Mission, Vision, and Values 
 Step 3:   Management Team and Oversight Structure 
 Step 4:   Resources/Supports & Functions 
 Step 5:   Start-up Feasibility and Viability 
 Step 6:   Target Market Selection 
 Step 7:   Product, Service, or Message Positioning 
 Step 8:   Pricing 
 Step 9:   Promotion 
 Step 10: Place and Logistics

Planning  Implementing  Evaluating 
Of the three step process which includes planning, implementing, then evaluating, this section details the planning process.

Figure 3. Steps to planning a school-based enterprise
Select Name  Mission, Vision & Values  Management Team  Resources & Support Functions  Start-up Feasibility & Viability  Target Market Selection  Product, Service, or Message Positioning  Pricing  Promotion  Place & Logistics 
Businesses do not plan to fail but fail to plan  
Planning involves creating a written layout of how the business will operate “on paper.”‖ Start-up financial and operational feasibility, incorporating detailed product, service, or message selection; marketing potential, such as how the product, service, or message will be positioned or branded; and front-end (e.g., point of purchase) and back-end (e.g., paperwork) structures will be established within a planning document.
The social and educational return stated within this module‘s working definition of SBE captures the major difference between purely economic business planning approaches and the skill development needs of youth and young adults.  The SBE version of a business plan is really an “exchange plan,”‖ where youth participants, customers, supports, and other stakeholders come together to exchange lasting value. 
Step 1: Name and Logo Selection 
Selecting a name makes the business enterprise real by giving it an identity.
Questions to ask when brainstorming a name include: Is it memorable and distinctive? Does it tell customers about the range of offerings?
A tagline (short statement) can accompany the name and receives the same considerations.
A logo, taking the form of a word, several words, or an image, represents potential and repeat customer recognition when it is seen.  For example, the Target logo is a red dot surrounded by a red circle, while Home Depot is a series of orange letters.
“Top of mind” branding is the objective for all businesses, gained through extensive repetition, associations, and presence.  Channels of communication (media) are outlined further in the marketing section of this document, but should be kept in mind during the name selection process because they are impacted not only by placement but also speed and familiarity (i.e., recognition).
Placement: The ABCs 
The letter of the first word in the name will determine placement in alphabetical listings such as yellow page sections and Web sites.   The American Automobile Association (AAA), for example, benefits from first-seen placement.
Speed: Length and the Time to Process 
The chance to communicate a message, whether mentioned on the radio or on a sign by the side of the road, is likely only a fraction of a second.  The number of messages we see is estimated in the hundreds (Google Answers, 2002), so there is an enormous degree of competition for attention.
Name length directly impacts recognition and attention.  For example, Student‘s Corner Store Food Market may not be read quickly and would be missed if driving by its sign.  Student‘s Grocery is more concise and increases the likelihood that it will be read.
Familiarity  
Repetition impacts familiarity, yet a new business is at a disadvantage to build repetition and may benefit from associations.
Positive associations (with other products, events, common experiences) 
For example, there are likely a small number of “top of mind” brands that are instantly associated with certain words.  What do you think when you read the following?
•	Coffee - Starbucks/Dunkin Donuts/Folgers? 
•	Soda - Coke/Pepsi/Mountain Dew? 
•	Shoes - Nike/Adidas/New Balance? 

Now think “car wash”.  Is there a local brand that comes to mind?  If not, then the competition for “top of mind” familiarity is low and there is an opportunity for it to become that brand.
Alliteration 
Alliterating by repeating words that begin with the same letter or repeating syllables can enhance familiarity.  Annie‘s Art or Ron Jon Surf Shop are examples.
Geography [city name] [product name] 
Incorporating the name of the location where the business is based is a way to familiarize a new business.  Examples include Tampa Coffee, Pasco Pet Sitters, Pinellas TV Repair, and Tallahassee Tuxedos.  There are potential limitations to consider when estimating the majority of where SBE activities will occur.  A map indicating the SBE location surrounded by a circle may be helpful to visualize geographic reach.  Push-pins that indicate competitors and other symbols can also be added to make this visualization more informative.
Generic Names 
Strip-malls in Florida commonly have generic names such as Barber Shop, Beauty Supply, and Pet Store.  These commodity names have the advantage of tapping into basic understandings that are less likely to be misinterpreted, yet there can be many competitors with the same generic name.  As a result, commodity stores are largely dependent on location and the presence/absence of competitors nearby.  There are also implications for positioning (i.e., trying to differentiate from what other stores provide) and pricing (e.g., difficulty in raising prices, sales by competitors affecting current prices).
Common versus Uncommon Words and Differences in their Interpretation 
Word choice largely depends on the audience. For example, Iconoclast Designs may be an appropriate name for a graphic arts services company that is innovative and can be expected to always “break the mold” from established design trends, yet iconoclast is literally defined as attacking cherished beliefs.  Customer interpretation and reading level should be considered when there are words that may not be understood as intended.
Negative Associations 
Not all associations are positive.  Does the business name spell an acronym, for example, that is negative?  An Australian themed business, the Down Under Hut, spells DUH—definitely an acronym to avoid.
Associating the product, service, or message that will be sold with something that has nothing to do with it is another way to create a negative association.  For example, barns are common in Florida, yet a Rug Barn, Dress Barn, Plywood Barn, or other non-barn items may be confusing.  The same is true for depot.
Humor, Misspelled Words, and Word-Play 
Additional potential pitfalls involve humor that can fall flat.  Misspelled words, slang, and word-play can easily be misinterpreted when the audience doesn‘t “get it.”‖ Examples of salons include:
•	Hair Apparent (a play on heir apparent)  
•	Kuntry Kuts (a play on country cuts)  
•	Contagious Curls  
Color, Visibility, and Communication 
The communication of meaning does not rely on words and sound alone.  Colors can convey depth, associations, energy, feelings, and mood.  The study of color psychology figures prominently in the field of design (e.g., Eiseman, 2006) and warrants careful consideration of how and where it can contribute to, or detract from, the SBE brand.  Printing costs are another consideration, since colors are often more expensive to reproduce. 
Classroom Exercise!
Step 1: Thinking About Names 
1.	Have students make a list of their “top of mind” companies.  Write the companies on the board and create a top 10 list to see which are most common.  Then ask why they chose them and evaluate their characteristics.  Are they short or long?  How many people are likely to be able to read them?  Could they be seen quickly and recognized?  Do the names describe what they sell?  What are the ways these companies communicate their brands (e.g., television, radio), and are there other techniques used to help remember them (e.g., a character/mascot, song or sound)?  Are their colors vibrant and eye-catching, neutral, or bland?  Do they contribute or detract depth, association, energy, and feeling?
2.	Then ask students to describe the logos or taglines associated with the companies.  Do they clarify or limit the brand‘s meaning?  How often are they seen alongside the names?
3.	Ask students to estimate how many times a day they see or think about these companies, in addition to where they are not reminded of them.  A larger discussion of media exposure and how youth are targeted and persuaded to make purchases can be incorporated into this exercise (e.g., Advertising Age, n.d., Google Answers, 2002).
Step 2: Mission, Vision, and Values 
Mission  
A mission statement should reflect the purpose of the enterprise.  For example:  
The Mission of Carwash Champions is to provide fast and courteous wash and wax services within Tampa Bay to ensure customer satisfaction and provide Hillsborough High School students with life skills education and entrepreneurial skills training opportunities. 
Students would evaluate and refine a statement such as this to include or change elements they would like to emphasize or negate (i.e., what they think are important because they will be the main contributors).  Emphases such as “high quality” or “low cost,” for example, may be desired additions. 
Vision
A vision statement is a long-range view of what the enterprise can become or accomplish.  The vision for the United States was at one point to walk on the moon, and many companies set as their vision to become industry leaders.  An optional goal-setting element for a vision statement is to state a point in time for when the vision will be achieved.  For example: 
The Vision of Carwash Champions is to double in size within three years. 
As the enterprise evolves, the vision statement can be updated or changed to reflect a new direction. 
Values 
Value statements can be used to remind everyone involved in the enterprise about the core values that are applied to every aspect of its activities. For example,  
Carwash Champions will achieve its goals through positive learning experiences, teamwork, and support. 
Classroom Exercise!
Step 2:   Mission, Vision, and Values 
•	Ask students to find the mission, vision, and values statements of their favorite companies listed in Step 1.  List these on the board and ask students to evaluate them.  What are their similarities and differences?  For whom are they written (customers, employees, or both)?  Are they easily understood?  Are they short or long, and can they be easily remembered?
•	Have students write their own mission, vision, and values statements, and then discuss them.
Step 3:   Management Team and Oversight Structure 
 Any number of management team structures can be used to organize the enterprise‘s activities.  A sample team may include:  
Figure 4. Sample enterprise management structure
Enterprise management team structure in which all of the roles below are part of a circle 
•	Natalie Smith, Director (Special Education Teacher)
•	Tamara Freedman, Coordinator (Parent)
•	Bob Jones, Consultant (Principal)
•	Maryann Davis, V.P., Accounting (Student)
•	John Boyd, V.P., Marketing (Student)
•	Jordan Ellen, V.P., Operations (Student)
•	James Borner, President (Student)
Classroom Exercise!
Step 3: What Makes Good Leaders? 
1.	Ask students about the qualities they believe good leaders have and list them on the board.  Sample questions for discussion include:  
•	Who are these leaders and where are they found (e.g., at the head of a team such as a sports team, the head of an organization or family)?
•	 Who supports these leaders?
•	 When are good leaders needed most?
•	 Why is it important to have leaders?
•	 Do students want to be more like these leaders, and if so, in what ways can they do this?
 Leadership Topics:  
•	Responsibility 
•	Improvement over time 
•	Experience 
•	Knowledge 
•	Skills  
•	Attitudes 
Ask students to write a small biography of their favorite leader and share this with the class.  Has this person always been a leader? 
Step 4:  Target Market Selection 
The target market includes current and potential customers.  Begin by thinking about who would be the best customers in terms of repeat business and referring others to the SBE.  Then think of where these types of individuals are most concentrated (e.g., at a location at certain times) and what kind of shoppers they are.  What are the best opportunities for reaching customers initially and then forming a relationship?
Target Market Examples:  
•	SBE reach and proximity by area/region (e.g., people living within a certain zip-code) 
•	Teachers/administrators 
•	All parents or a select number (e.g., PTA members)  
•	Other school staff 
•	Local university students and staff 
A diagram can be made with circles that start from the first expected customer and continue with lines that connect to others.  An alternative diagram may start with the students in the center of concentric circles that move outward. 
Classroom Exercise!
Step 4: Knowing the Neighborhood 
1.	Ask students to visit the American FactFinder page from the U.S. Census Bureau http://factfinder.census.gov/home/saff/main.html?_lang=en 
to learn about their city, town, county, or zip code.
 There are also state and county QuickFacts: 
http://quickfacts.census.gov/qfd/index.html 
Use a local map to aid with illustrations (these are usually available to AAA members at low or no cost).  
2.	Students can make pie charts, understand the difference between estimates (used for the present and the past) and projections (estimates of the future), and better understand how the U.S. Census defines different groups.
3.	Comparisons can be made between similar areas, and students can learn about proportions (e.g., how large their area is compared to their county and state), trends (is the population increasing or decreasing?), and which demographics are important and not as important to the SBE.
Step 5: Product, Service, or Message Positioning
Positioning can be achieved through differentiation or market segmentation.  Differentiation is where there is a real or perceived difference between what the SBE has to offer for sale and what is comparable.  It is essentially the competitive advantage of the SBE over its rivals.  If gas stations begin to offer a discounted or free carwash with a gas fill-up, the exchange plan for a carwash SBE would consider the potential impact on the SBE‘s business (i.e., no change, a moderate change, or a significant change). The value proposition for services may be differentiated to emphasize a difference, such as a free air-freshener or a newspaper for the customer to read while waiting.
Market segmentation is where the value proposition changes based on different target markets.  For example, flyers placed on luxury cars may emphasize prestige, quality, and attention to detail.
Positioning Examples:  
•	High quality versus low cost  
•	In demand versus no wait time  
•	Fast versus thorough 
•	Sophisticated choice versus a “no-brainer”‖ 
Positioning also involves maintaining the reputation of the business, as determined by perceived quality and reliability.  The overall number and scope of complaints are telling signs of significant opportunities for improvement.  For example, are expectations set too high?  Has too much been promised versus delivered, or are there simple or chronic errors in delivery? 
Classroom Exercise!
Step 5: Quantity and Quality
1.	Take two large posters and attach them to the board.
2.	Label one High Quantity/Low Cost and the other Low Quantity/High Cost.
3.	Then pass out three or four advertisements for a variety of products to each student (e.g., from a local newspaper) and ask the students to cut them out.  Then they should attach the ads to the poster where they think the ads belong.
4.	Review each of the examples and ask students to explain their selections.
5.	Sample discussion questions include:  
•	Are there always prices to indicate value?
•	What common key words are used to indicate value when prices are not given (e.g., premium, genuine)?
•	If an advertisement is for a sale with a percentage off, is the percentage high or low compared to the price?
•	What pictures are used to indicate quality?
Step 6: Positioning 
Positioning has a direct effect on price because it changes perceived value.  Elasticity of demand is the term given to the percentage change response in quantity demanded (positive or negative) relative to the percentage change in price.  The absolute value of the result then indicates how sensitive the market will be to the change.
The costs of supplies and workers will eventually rise while prices remain the same, so when can prices rise with or without a change in what is offered?  These are pricing decisions that are frequently necessary and are usually in response to an operational or environmental change.  
For example, Carwash Champions sells each car wash for $10.00.  During a drought the management team decides that $12.00 can be charged.  What is the estimated drop in demand due to this change?  Alternatively, if business is slow, can a coupon for $2.00 off keep demand constant?
Preferably using experiential sales data from the previous year, month, or week (depending on how close the future would be expected to match the past), demand at the $10.00 price (Poriginal) is estimated to be 120 washes (Doriginal).  If 20 customers are expected to be lost by raising the price to $12.00 (Pnew), then the new demand is 100 (Dnew). 
Poriginal = $10.00 
Pnew = $12.00 
Doriginal = 120 
Dnew = 100 
The percentage (%) change in price is 
(Pnew – Poriginal) / Poriginal 
($12.00 - $10.00) / $10.00  
= 0.2 
The percentage (%) change in demand is similarly  
(Dnew – Doriginal) / Doriginal
(100 – 120) / 120  
= - 0.17  
The elasticity of demand is the absolute value of
% change in demand / % change in price
 - 0.17 / 0.2  
= - 0.85 
The absolute value of  – 0.85 
= 0.85 
An elasticity of demand greater than 1 determines that demand is price elastic (very sensitive).  Equal to 1 determines neither elastic nor inelastic, and less than 1 determines inelastic (not sensitive to price changes).
A more extreme example will help illustrate this further.  If prices were to double with the same drop-off in demand, figures are 
Poriginal = $10.00 
Pnew = $20.00 
Doriginal = 120 
Dnew = 100 
The equations would then yield
% change in demand /   % change in price
[(Dnew – Doriginal) /  Doriginal]   / [(Pnew – Poriginal) / Poriginal ]
 [100 – 120 / 120]  / [20 – 10 / 10]
 - 0.17 / 1.00
= -.017 
Absolute value = 0.17 
Comparing 0.85 in the original example to 0.17 in the more extreme example, price inelasticity (or sensitivity) decreases significantly if the price were to double and demand remain relatively unchanged. 
It is advisable to use a high, low, and middle estimate to determine a range of potential pricing options.  For example, if a drop-off in demand is estimated at 20 (from 120 to 100), explore the differences between 90, 100, and 110 to create a range. 
The intention behind finding the right price elasticity is to make the highest profit attainable (i.e., what the market will bear) balanced against the net value (value rendered minus expected value) determined by the customer.  The result of this exchange is satisfaction, dissatisfaction, or indifference. 
Customer delight through pricing is not the only goal to have, as pricing that is too low can certainly increase satisfaction to where the SBE’s revenue is harmed.  Non-price additions, such as smiling and engaging in conversation, will ideally be used to reach toward this ultimate goal. 
Indifferent customers are not brand loyal, will not intentionally seek repeat patronage, and will neither harm nor enhance the reputation of the SBE through word-of-mouth.  In this way, indifferent customers are essentially transactional.
Customer dissatisfaction, while never intentional, is not always negative.  Some customers’ expectations are simply too high to meet, and the time and energy invested in trying to meet them (e.g., negotiating price) can potentially drain staff morale.  Prices that are too high will alternately harm repeat business for a larger number of customers that are dissatisfied.  Complaints of any kind should be addressed immediately, as research has shown that customers who voice complaints that are quickly resolved to their satisfaction are more loyal than those who have never had a problem (Barlow & Moller, 1996).
Elasticity is a method for determining price change decisions.  However, when starting an SBE, experiential sales data to gauge demand are not available.  Researching other SBE‘s sales data (if possible), competitor‘s prices, or publications or guidance on the Internet, is an excellent way to begin. Also, meeting with consultants from a local small business development center or other experts from local small businesses and asking as many people as possible will provide a rich source of information. 
Classroom Exercise!
Step 6: Too High or Too Low? 
1.	Draw a long line on the board with Satisfaction and Dissatisfaction on opposite ends and Indifference in the middle. 
2.	Use the advertisement examples from Step 5 (or different examples) and make sure each has a price (for those that do not have a price listed, ask students how much they think they are worth). Then place all of the advertisements next to Satisfaction.
3.	Move each along the line toward Indifference and Dissatisfaction by asking students how high prices would need to increase to change customers’ perceptions to each of these.
Another exercise would start with all of the advertisements next to Indifference and the effect of sales. 
Step 7:  Promotion 
Promotions should be fun activities undertaken during the planning phase.  However, a lot of time and energy should be expected up front, especially regarding follow up with contacts.  An SBE is unique in that donations are part of promotion efforts.
A brainstorming list of potential donations and sources to the project is one way to organize and determine the feasibility of ideas.  Consider who would be contacted, how the items would be received, and what would be provided in return (e.g., signs indicating donated items or sponsors) would then follow.  Table 1. Sample Brainstorming List for Donations to Carwash Champions contains an example of possible donations to Carwash Champions.  
Table 1. Sample Brainstorming List for Donations to Carwash Champions 
Ice	Parent/supporters, refrigerators, convenience stores, Grocery Stores, Corporate sponsors	
Bottled water	Corporate sponsors	
Cooler	Parents/supporter donation, yard sales	
Uniform (T-shirt)	Fundraiser	
Markers and signs	School supplies	

Donations can also take the form of promotional items or messages to potential customers, such as radio announcements; a feature story in the local newspaper; free Web site hosting, coding, and updating; word-of-mouth; bulletin boards at community laundry facilities; counter space or bag stuffing at local businesses; printing services for flyers; and a wide range of cross-promotions involving coupons.
An extensive list of promotion ideas can be found in a number of resources, such as small business magazines (e.g., Inc., 2006; Florida Trend, 2006; SmallBiz, 2006), online the Small Business Administration or entrepreneurial Web sites (SBA, 2006; IdeaCafe, 2006), or within books outlining marketing and sales strategies (e.g., Gerson, 1996;  Stephenson, 2003).  
A few examples for Carwash Champions include: 
•	Games/contests involving give-aways or raffles 
•	Frequent customer cards 
•	Upselling/suggestive selling 
•	Seasonal themes (e.g., Valentine’s day sales) 
•	Refer-a-friend incentive programs 
Promotion efforts alone do not ensure success.  Therefore, both the effectiveness and efficiency of promotion efforts should be constantly evaluated.
Sample questions for determining these evaluations include:  
•	Are the signs clear, attractive, and legible from a distance?
•	How can additional attention be attracted, and would the associated costs be worth pursuing? (e.g., balloons, an inflatable character, a mascot)  
•	Is there a way to contact customers once they have left (e.g., by e-mail, mail, or fax)?
•	What is the return from the promotional efforts (i.e., are they being tracked)? (e.g., coupons are counted not only by the accountant but also the marketer, customers are asked how they came in and what promotions were seen) 
•	Will a failed effort be revisited or permanently dismissed? 
•	Is the timing correct? 
•	Has as much feedback by as many people as possible been gained? 
•	What might distort or compete with the promotion?
Classroom Exercise!
Step 7: Selling Points  
Features, advantages, and benefits are used to communicate the value of what is being sold.
1.	Write these categories on the board and ask students to create a list with a partner that will be shared with the class.  
2.	Explain that features are characteristics that are physical, such as color, size, weight, and packaging.
3.	Advantages are the reasons customers would buy what you are selling as opposed to competitors.  Examples include price (affordability), time (convenience), and intangible qualities (e.g., style).
4.	Benefits are the results of features and advantages.  Examples include something customers can show off to friends or a service they did not have to perform themselves.
Step 8: Place and Logistics 
Place and logistics refers not only to the location where the customer transaction takes place, but also to communications about marketing and social marketing efforts, the logistics and distribution of supplies for daily operations, and the potential short- and long-term impacts of changing all of these.  Another aspect of place and logistics is the placement of staff that self-determine and are assigned to specific jobs and tasks.
A map from a local American Automobile Association (AAA) office is helpful for location-based SBEs.  Using the example of the Carwash Champions SBE, markings of the car wash location relative to competitors can inform promotional efforts.  If nearby construction is planned, as indicated by the city/county urban development department, can a different lot be used to avoid construction? And will repeat customers know where to find it?  The location appropriateness of sign-holder staff or stationary signs (e.g., sandwich-board stands, posts) can also be planned with the use of a map.
•	Reflecting on the target market selected in Step 4, where are these customers most likely to be and at what times?
•	 Is there a reminder of your SBE “placed” with previous customers, such as a frequent customer card?
Classroom Exercise!
Step 8: When and Where to Be “with” Customers  
1.	Identify the target market on the board and ask students to list all the places these individuals visit frequently and infrequently.
2.	Ask students to think about when customers would be most likely and least likely to buy something from the SBE.
3.	Arrange the responses into the categories Before School, During Lunch/School, and After School.
Examples include places customers work, relax, volunteer, and shop.  Do they attend “big events”  where a booth may be set up? 
Events Examples 
•	PTA meetings  
•	Fairs (e.g., health fairs)  
•	Local government activity days
•	Charities
Step 9:  Start-up Feasibility & Viability 
Start-up feasibility and viability is an assessment of risk and involves identifying the degree of involvement and time commitment to the SBE; resources/supports and functions; financing; and the Strengths, Weaknesses, Opportunities, and Threats (SWOT) that can substantially change the direction of the SBE’s activities.  Knowing more about what will be involved and the resources needed to start and sustain an SBE will help in ensuring everyone is ready and committed.
Degree of Involvement and Time Commitment 
One major component of feasibility is to gauge the degree of involvement and amount of time involved in starting a new SBE.  One person does not have to do everything, and the resources and supports are critical to starting and sustaining a SBE.  Also, students stand to gain most from the SBE when they are directly involved with its activities.
The McCreary Centre Society provides the following Ladder of Participation model developed by Roger Hart (2002).   Starting at the highest point on this participation ladder is in keeping with the “youth as partners” Spectrum of Attitudes theory and is reflective of Transition to Independence Process (TIP) guidelines (National 4-H Council, 1997; Clark, 2007).  Youth leadership should begin at level 8 and be prevented from falling.  
Figure 5. Ladder of Participation model developed by Roger Hart (2002)
Figure is the shape of a ladder, with number 8 at the top. 
8) Youth-initiated, shared decisions with adults is when projects or programs are initiated by youth and decision-making is shared among youth and adults. These projects empower youth while, at the same time, enabling them to access and learn from the life experience and expertise of adults. 
7) Youth-initiated and directed is when young people initiate and direct a project or program. Adults are involved only in a supportive role. 
6) Adult-initiated, shared decisions with youth is when projects or programs are initiated by adults, but the decision-making is shared with the young people. 
5) Consulted and informed is when youth give advice on projects or programs designed and run by adults. The youth are informed about how their input will be used and about the outcomes of the decisions made by adults. 
4) Assigned but informed is where youth are assigned a specific role and informed about how and why they are being involved. 
3) Tokenism is where young people appear to be given a voice, but in fact have little or no choice about what they do or how they participate.
2) Decoration is where young people are used to help or "bolster" a cause in a relatively indirect way, although adults do not pretend that the cause is inspired by youth. 
1) Manipulation is where adults use youth to support causes and pretend that the causes are inspired by youth. 
Resources/Supports & Functions:  
Supports are individuals who can substantially help the enterprise and may be critically important to starting and maintaining its development. 
Gordon Leavitt, V.P. University Mall - Authorizes the use of the mall parking lot to hold car washes.
Nancy Ellington, Parent and Teachers Association (PTA) President - Coordinates parent volunteers to assist/chaperone business operations
A sample support team for Carwash Champions includes:
 Support in the form of donations can be requested from foundations, reciprocal or non-reciprocal corporate sponsorships, local government support, etc.  
Give-aways can include movie, event, theme park tickets; free pizzas; and other supportive, item-based donations for internal incentives for students.
Financing 
A major part of determining start-up feasibility and viability is to construct a budget-based feasibility analysis to estimate the sales needed to successfully operate the SBE without losing money.  Following is an example of a budget for Carwash Champions.
Table 2. Sample Start-up Budget for Carwash Champions 
Fixed Costs		Purchase Frequency*	
Sponges (10 at $1.50 each)	$10.50	Monthly 	
Soap (6 bottles at $3.00 each)	$18.00	Daily	
Wax (3 bottles at $4.00 each)	$12.00	Daily 	
Hand towels (40 at $3.00 each)	$120.00	Monthly 	
Car wash water	$40.00	Daily	
Uniforms (T-shirts) (10 at $7 each)	$70.00	As needed	
Parking lot fee (per day)	$150.00	Daily 	
Signs (4 at $1.50 each)	$6.00	Monthly	
Markers (1 at $2.50 each)	$2.50	Monthly 	
Bottled water (3 cases at $10.00 each)	$30.00	Daily 	
Cooler for water 	$15.00 	One time	
Ice for Water (3 bags at $1.00 each)	$3.00	Daily 	
Fixed costs sub-total 	$477.00		
Estimated Student involvement (5 at $6.50 per hour x 8 hours) 	$260.00	Daily	
Total 	$737.00		
* Increased as needed  
If the charge for a car wash is $10.00 each, then 48 would have to be sold before the below-line (meaning highly unchangeable or “fixed”) expenses would break-even.  Creating an estimate of purchase frequency can help to create a budget forecast by day, week, month, etc.
Estimated student involvement is a variable cost, meaning it could be less if someone leaves early or is sent home due to slow business, lateness in showing up, or being out for the day due to illness.  Utilizing this example, 74 car washes would need to be performed on the first day for the SBE to break-even!  This shows the need for long-term financing so that start-up costs can be recovered over time.  Figures 5 and 6 illustrate a more useful way to estimate break-even on a daily and weekly basis.
The question, “Is the SBE feasible?”‖ is heavily dependent on the assumptions behind these estimates.  A high (i.e., best case scenario), low (i.e., worst case scenario), and middle (average) can help to show a range of possibilities.
Figure 6. Daily Expenses (Fixed, Variable, and Total) and Revenues
This figure shows a five day graph of a business’ financial performance, broken down by fixed, variable, total expenses and revenue. 
•	Day 1
o	Fixed $500
o	Variable $250
o	Total Expenses $700
o	Revenue $100
•	Day 2
o	Fixed $0
o	Variable $250 
o	Total Expenses $250
o	Revenue $100
•	Day 3
o	Fixed $0
o	Variable $250
o	Total Expenses $250
o	Revenue $100
•	Day 4
o	Fixed $0 
o	Variable $250
o	Total Expenses $250
o	Revenue $100
•	Day 5
o	Fixed $0
o	Variable $250
o	Total Expenses $250
o	Revenue $100
Figure 7. Weekly Break-Even Estimate from Cumulative Revenues and Expenses
This figure shows a six week graph of a business’ weekly financial performance, broken down by expenses, revenues, and break-even. 
•	Week 1 
o	Expenses $2000
o	Revenues $500
o	Break-Even -$1500
•	Week 2
o	Expenses $400
o	Revenues $600
o	Break-Even -$1000
•	Week 3
o	Expenses $400
o	Revenues $600
o	Break-Even -$800
•	Week 4
o	Expenses $400
o	Revenues $600
o	Break-Even -$300
•	Week 5
o	Expenses $600
o	Revenues $650
o	Break-Even -$50
•	Week 6
o	Expenses $650
o	Revenues $650
o	Break-Even $400
A feasibility analysis is also useful for determining whether additional services can be provided.  For Carwash Champions, examples include cleaning the inside or detailing for additional fees.  
Research and operations planning are the most important activities for preventing unexpected costs.  For example, does the local municipality (city or county) require a permit?  In this example, the car wash is within a mall parking lot, but if the business had to move, will the new area be zoned for commercial activity?  How will the car wash drive line be organized?  Will someone be required to direct traffic? Will cones and ropes be needed?  Will customers stand or be given a place to sit with shade?  All of these operational considerations will impact costs, as will the ability to secure donations to reduce as many cost components as possible.
Another critical activity is start-up financing, such as how a line of credit or investors will be secured.  Ongoing budgeting, including an income statement, balance sheet, and statement of cash flows will eventually become necessary as the SBE grows.  Cash flow requires constant monitoring.  Weekly and monthly projections, accounting for spikes and troughs in business affected by internal or environmental factors, would extend the feasibility analysis.
SWOT Analysis 
Analyses of the internal Strengths and Weaknesses versus external Opportunities and Threats (SWOT) are also included in an examination of start-up feasibility and viability.  One way to approach SWOT is to first think of the resources that can turn a weakness into a strength and situations that can turn a threat into an opportunity (or vice versa).  SW is internal to the SBE, while OT is external to the SBE.  
Internal to the SBE  
Strengths:  
•	Students!  (e.g., knowledge, skills, attitudes, experience, commitment)  
•	Continuous free advertising in the local daily circular  
•	PTA word-of-mouth support 
•	Carpooling to and from the carwash 
•	Volunteers 
•	Adaptability of car wash staff (helping to wash/wax/dry, if needed) 
Weaknesses:  
•	Scheduling conflicts or difficulties 
•	The need for an accounting software package and upgrades (e.g., Quicken® or QuickBooks®) as finances become more complex 
•	Running out of supplies  
•	Potential bottlenecks between wash and wax if a vehicle is difficult to clean 
•	A maximum number of people needed to work during a peak time (leading to lines, dissatisfaction, and lost business) 
•	Worker fatigue 
External to the SBE  
Opportunities:  
•	An expected drought season 
•	A new store opening at the mall that will attract business 
•	Mall events such as dealership days held near the carwash 
•	An ability to put flyers on cars at the mall (if allowed) 
•	Peak traffic times during a lunch hour where signs can be displayed 
•	Tie-ins with other businesses (e.g., coupons given for a free oil change and inspection at a local vehicle repair shop with every car wash in exchange for coupons given by the shop for a car wash) 
Threats: 
•	An expected rainy season 
•	Road construction blocking customers or the view of the carwash 
•	Competition starting or expanding nearby 
•	Presence of comparable services (e.g., gas stations with car-washes begin to offer a free or discounted wash with a gas fill-up) 
Classroom Exercise!
Step 9: Brainstorming Start-up Needs  
1.	Divide students into four groups and ask each to work on a section of the SWOT analysis to share with the class.
2.	Brainstorm ideas for how to turn Weaknesses into Strengths and Threats into Opportunities.
3.	Using the economic, social, and educational skills list discussed previously, what specific skills do students bring or want to bring to Strengths?  A measure of time can be added to skills that are planned, which can be part of future evaluations.
4.	One item to add to threats in Florida is hurricanes.
5.	Other environmental concerns include the effect of rain or very hot/cold days.
6.	Students can learn about the importance of planning for the unexpected through its impact on the SBE.  For example, ask about the impacts they think would happen if power were lost for an extended period of time. 

Chapter 3: Phase II – Implementing
In this section, you will plan a school-based enterprise by following these nine steps:
•	Step 1: Gaining Support through Social Marketing
•	Step 2: Recurrent Evaluations
•	Step 3: Daily Operations and Process Refinement
•	Step 4: Communication Structures and Methods
•	Step 5: Sales Forecasting
•	Step 6: Accounting, Cash Management, and Budgeting
•	Step 7: Emerging Market Expansion or Retraction
•	Step 8: Partnering and Vendor Relationships 
Gaining Support through Social Marketing  Recurrent Evaluations  Daily Operations and Process Refinement  Communication Structures and Methods  Sales Forecasting  Accounting, Cash Management, and Budgeting  Emerging Market Expansion or Retraction  Partnering and Vendor Relationships 
Planning  Implementing  Evaluating 
Of the three step process which includes planning, implementing, then evaluating, this section details the implementation process. 
Implementing
Making changes while the SBE activities are being implemented is much more challenging than planning “on paper” in Phase I.  Meeting these challenges and succeeding, however, makes Phase II the most exciting.
 Day one of the SBE and its first transaction is a major marker of progress, and should receive as much attention as possible for its Grand Opening.  Gaining support, monitoring operations, and maintaining focus will then keep the SBE on an organized path. 
Step 1:  Gaining Support through Social Marketing 
 Defined as the “use of marketing principles and techniques to influence a target audience to voluntarily accept, reject, modify, or abandon a behavior for the benefit of individuals, groups, or society as a whole” (Kotler, Roberto, & Lee, 2002, p. 5), social marketing provides a useful framework for generating interest, gaining and maintaining support, and heightening the importance of the personal and social value of the project.  
Similar to traditional marketing that seeks to change consumer behavior for the purposes of revenue and profit, social marketing uses many of the same practices or means to achieve a different, socially-relevant end.  The emphasis of social marketing is behavioral change rather than buy/sell transactions.
The outline that follows will illustrate how changes in attention and a positive focus can translate into socially relevant resources for both the project (e.g., funding, time) and youth (e.g., job attainment, skills development, goal achievement).
Social Target Market 
The “targets” or receivers of the messages include both current and potential supporters that can provide needed resources, such as funding, attention, volunteer time, and other forms of support (e.g., word-of-mouth, letters of commendation/recommendation).  Examples of supporters include the school superintendent, administrators, community groups and corporate sponsors, parents, volunteers, and media contacts.
Messages to these supporters are tailored to emphasize what they would be most interested in supporting and should each conclude with a request, follow-up statement, and contact information.  Familiarity with their language (e.g., common terms and words), and experiences should be researched to inform how to best position messages.  For example, a letter to the Superintendent may include language that is reflective of the Mission of Florida's K-20 Education System: 
Increase the proficiency of all students within one seamless, efficient system, by providing them with the opportunity to expand their knowledge and skills through learning opportunities and research valued by students, parents, and communities, and to maintain an accountability system that measures student progress toward the following goals: 
A. Highest student achievement  
B. Seamless articulation and maximum access  
C. Skilled workforce and economic development  
D. Quality efficient services  
(Florida Department of Education, 2007b).
Since the emphasis for targeting these individuals is behavior change, understanding their placement on what Prochaska and colleagues describe as the Stages of Change is useful in creating messages that will increase these behaviors (Prochaska, Redding, & Evers, 1997; Prochaska, Norcross, & DiClemente, 1994). 
The stages of change range from Precontemplation (not thinking at all about change) to Contemplation (thinking about change but with perceived barriers), Preparation (perceived barriers are seen as less than benefits), Action (attempting change), Maintenance (fully committed, though relapse is possible), and Termination (habitual and continual without thought of relapse) [Sullivan (1998) provides a discussion of how student skills can also utilize this framework].
The SBE’s targeted messages will ideally reflect an understanding of the target market’s barriers to increasing support. 
Social Product/Service/Message 
The products/services/messages of social marketing are the benefits that result from behavioral changes that accrue to not only the target market, but also the local community and larger society.  Once the primary gains are identified (i.e., the outcome goals), messages to current and potential supporters can contain a statement of need coupled with a request for additional resources (e.g., funding, volunteer time) to achieve this gain.  This communicates how and why support should be given to the project, yet knowledge of their barriers should also reflect what is “in it for them.”‖
Positive messages that are assets-based should be emphasized over negative interventional approaches such as “preventing school dropout” for “at-risk students,” although this will depend on the target.  For example, is preventing school dropout the main focus, or is it a secondary gain to student engagement?
Following the “features, advantages, and benefits” framework for communicating value, each message includes intangible components of goodwill.  An emphasis on specific and measurable direct support (behaviors) linked to these gains utilizes the social marketing framework and creates a strong request.
Social Features 
Features are related to the activities undertaken to achieve the outcomes or deliverables of the project, which are primarily skills.  Examples include: 
•	Prepares students with specific job skills that are adaptable 
•	 Provides a service to the community by fostering student development 
•	 Provides unique transition experiences within an educational environment 
•	 Creates connections between the school and community 
Social Advantages 
•	Advantages include convenience, affordability, and other resource components of the project that make it distinctive or better than direct or indirect competitors (for limited resources).  Examples include: 
•	An established track record [if applicable] or other experience  
•	The use of practices that are supported by research/professional consensus 
•	Financial elements of support (e.g., cost-sharing agreements, donations)  
•	An advisory board that is diverse and well-connected 
Social Benefits
Benefits are the end results of the project that are positive.  One way to approach benefits is to frame them as efficient (greater inputs versus outputs) or effective (matching or exceeding targeted goals; progress toward the goals; the identification of opportunities for improvement).  
Each approach can incorporate a description of what was increased or decreased such as: 
•	Increased capacity to involve more students, parents, and supports 
•	Increased experience in what did or did not work (i.e., “lessons learned”) 
•	Increased teamwork
•	Increased resources
•	Decreased costs in terms of the time and energy of planning
•	Decreased search costs finding supporters (from renewed or expected pledges) 
•	Decreased errors (e.g., scheduling, coordinating)  
The features, advantages, and benefits described above are distinctive from those within the business aspects of the project.  
Each can be thought of as answers to the following questions:  
•	What are the most important things about the project the target (community, parents, supporters) should know?
•	What is the intangible social gain that will result from the improved experiences and engagement of the youth? 
•	What would the target (community, parents, supporters) miss if the project did not exist?  
•	Are the connections between target market behaviors (e.g., support activities) clearly tied to the SBE‘s features, advantages, and benefits?  
•	What social changes (e.g., crime, the state of the economy, local needs) are occurring that the project can positively affect?
•	What are the connections between the experiential gain of the project and the future of these youth in society and the workplace?
Social Price  
Placing a value or social price on the SBE’s activities can be related to the costs absorbed by the community without the SBE or gains to the community through supporting it.  Community can mean the business community, neighborhoods, non-profit community groups, or other organized sets of people devoted to a larger issue. 
Demonstrating the value of the SBE‘s activities to these groups can be explained in terms of the costs for training/retraining unprepared youth when they exit school and enter the workforce, the prevention of crime and poverty, the comparatively high degree of resources necessary to re-engage youth, and the multiple opportunities to connect youth with socially beneficial achievements.  If there is a stated mission or purpose of the group, then aligning the mission of the SBE with it is an excellent starting point.
The price or cost to the target market to provide additional support may be monetary or non-monetary (time and energy).  Perceived barriers relative to the “investment” or gain of providing support are critical components that hinder or facilitate stages of change.  Demonstrating and highlighting supporter impact will be the primary mechanism for achieving this perceptual change in price.
Social Promotion 
“We are in this together” is the underlying message for social promotion.
Sharing pictures, get-together events, and information with individual supporters (e.g., school superintendent, administrators, corporate sponsors, parents, volunteers, media contacts) and community-oriented centers furthers this message to achieve behavioral change (i.e., increase support).
Examples include: 
•	Pictures of the car wash staff  
•	Recognition (also affecting Price) 
o	Supporter and customer appreciation letters  
o	Thank you letters from the youth 
o	Rewards/plaques to local supporters 
•	Library displays and bookmarks 
•	Create an “(SBE theme) Day”‖  
•	Bulletin boards (e.g., community centers, Laundromats) 
•	Joint press releases 
Social Place
Social placement of the SBE can take the form of holding a gathering to celebrate successes (e.g., anniversary of the SBE).  Having as large of an audience as possible for these events also furthers Social Promotion.
Examples of SBE youth placing themselves in a socially marketable event include:  
•	Attending a radio show or cable access channel to talk about the SBE 
•	Appearing at libraries or local government events wearing SBE T-shirts  
•	Fire truck/ambulance wash 
•	Local sports team events 
•	Invited community group events
The presence of the SBE‘s highlighted activities can also be placed on poster boards with pictures and circulated in visible areas (e.g., library entrances, school district offices, school website).  The intention behind placement is to change behaviors (i.e., translate placement into increased support). 
Classroom Exercise!
Exercise 1: Compare and Contrast
Review the target market, product/service/message, price, promotion, and place identified in Phase 1. 
Then compare the overall similarities and differences between business marketing and social marketing (e.g., social marketing contains a characteristic emphasis on behaviors through communication and networking). 
Divide students into even groups and instruct each to identify specific similarities and differences, asking: 
1.	Is the target market larger or smaller?
2.	How can intangible features, advantages, and benefits be measured (i.e., given a number or value)?
3.	How do messages communicating the value of the SBE compare?
4.	How do promotional activities used to repeatedly remind people of the SBE change when what is being offered is intangible?
5.	What are the differences in perceived barriers?

Step 2:  Recurrent Evaluations 
Evaluating progress or opportunities for improvement at frequent intervals (e.g., weekly, monthly) should examine a progress-to-date snapshot (% of goals) as well as a trend graph that students can evaluate. 
These can be fun (e.g., depicted with large thermometers, prizes for contests).
At least three areas of evaluation are necessary and can be combined:  
1. An evaluation of the youth‘s individual progress 
2. An evaluation of progress in gaining/maintaining SBE support 
3. An evaluation of the SBE overall 
Classroom Exercise!
Exercise 2: Reporting is Boring Without Informing 
Students are constantly evaluated and frequently do not feel they have control and input into the process or an understanding of how valuations are determined.
Using the Goals for Evaluation as a base, ask students how to evaluate the SBE and themselves.  Then ask students what kind of report they would like to see to make it useful and informative.  Discuss how the school and future employers place a value on their education and work experience.
1.	Is there a match or disconnect (quantitative and qualitative) in how others evaluate students and how they evaluate themselves?  If they were in the position of school administration, their parents, or other supporters, would they expect the same?
2.	What progress or opportunities for improvement for themselves and the SBE would students want to share or emphasize with their parents, school administrators, and supporters? 
3.	Are changes needed in how students are evaluated versus changes they need to make? 
4.	How much time and energy is involved in collecting and formatting information for evaluation?  Is it worth it, and who makes this determination?
5.	What is the connection between evaluation and motivation?
Step 3:  Daily Operations and Process Refinement 
Labor dependent SBEs require advanced scheduling that will be flexible and designates on-call and first-cut staff relative to changes in demand, contingency plans for illness or transportation problems contributing to no-shows and lateness, break planning, relief staffing, a runner if supplies (including change for larger bills) run out, and set-up and disassembly time.
Other important operational issues include safety and security for the staff and money handling, how to handle complaints and other problems in advance (e.g., speaking to the side and not in front of other customers, an attempt to give a coupon versus a full refund, responding to dissatisfied customers), and staff training.
Wages are another consideration, since students cannot be paid for work.  They can receive points for being on time, maintaining an average, using appropriate language, and being active participants.
Some schools use timecards and an end of week reward system where students can redeem their points. Figure 8 highlights a payroll incentive system that outlines expectations for students’ contributions. 
Processes can be thought of as starting anew or a series of incremental improvements.  A discussion of quality management is beyond the scope of this document (e.g., Deming, 2000; Juran, 1992), but basic process flows such as “fishbone” or Ishikawa cause-and-effect diagrams can help students understand sequences (See Figure 9). Making process diagrams also allows students to reflect on what they experienced and think about how continuous improvements can be made. 
Figure 8. Program Highlight.
Example Source: Brookner, 2007

Program Highlight  
Falcon Express SBE at John A. Ferguson Senior High School set up payroll guidelines to reward students who:  
•	Follow class rules 
•	Use appropriate social skills 
•	Earn full points on assignments
Students receive award subtractions for:  
•	Tardiness to class or work 
•	Failing to follow directions 
•	Teasing or mocking of students 
•	Using inappropriate language 
•	Failing to complete assignments  
•	Refusing to perform job duties
Figure 9. “Fishbone” or Ishikawa Cause-and-Effect Diagram
This diagram is called “fishbone” because that is what it looks like. In this particular diagram there is a fishbone cause-and-effect diagram which depicts a car washing company.  
Classroom Exercise!
Exercise 3: From One-to-One to One-to-Many 
1.	Ask students to create a process flow chart highlighting their position in the operation of the SBE‘s activities. Peter, for example, is contributing to the overall process with an independent task. He can see himself within the larger picture.
2.	Using symbols such as rectangles, decision diamonds, and arrows to show where activities (processes) are performed and ask students if time or other important information (e.g., safety alerts) between steps is important.  Start with simple diagrams and build to more complex considerations.
Peter’s Carwash Champion Processes:
Start with customers' dirty vehicles. Jordan greets customers and exchanges money. Peter hoses vehicles. Natalie, Marianne, Dwayne, and John wash and dry vehicles. End with clean vehicles. Jordan thanks customers.
Step 4:  Communication Structures and Methods 
The phrase “one hand doesn‘t know what the other is doing” is a telling sign of disconnects in communication.  To avoid this, formal and informal meetings are used to drive internal connections between SBE planning and implementation.
If there is confusion, general questions may include: 
•	Are monthly SBE goals displayed and discussed regularly? 
•	Does everyone know the SBE‘s mission/vision/values?
•	Is there enough information being shared? 
•	Are progress or shortfall measures seen as negative (failures) or positive (opportunities for improvement)?
Classroom Exercise!
Exercise 4: Positive Communication 
Use the process flow diagram in Exercise 3, discuss the degree of dependency on one another (i.e., dependency students have on one another to succeed in accomplishing their work and the overall goals of the SBE) and the communication needs where links are found. 
Ask students to identify where communication is positive or needs improvement.
 For example, are there assumptions or expectations that can potentially cause problems? 
Step 5:  Sales Forecasting 
Sales forecasting is dependent on the amount and accuracy of collected data and the considerations used to produce estimates.  For example, an El Niño weather season changing monthly rain patterns would definitely be important to predict future sales for Carwash Champions.  A growth or decrease in population, changes in competition, and a host of other considerations can also dramatically change performance versus estimates.
High, low, and middle ranges can be used for “stretch goals,”‖ with the middle range representing the break-even point. 
Classroom Exercise!
Exercise 5: Expectations versus Reality 
Using the considerations made during Step 9 of the Planning phase, ask students to list the changes for projecting SBE sales based on what they have learned through operating the SBE.  A Who? What? When? Where? Why? and How? framework may be helpful to show expectations can differ dramatically from reality. 
For example, changes can occur in:  
•	Population growth 
•	Weather 
•	Jobs 
•	Support 
•	Technology  
An expanded discussion can include different ways to frame the primary variables that impact sales particular to the enterprise.  For example, sales are a function of or are dependent on X1, X2, and X3  ( $ =  customer volume + customer spending + sale items).
Step 6:  Accounting, Cash Management, and Budgeting 
Accounting organizes the transactions and financing of the SBE.  It can be highly rigid where the cost of producing exact figures outweighs the benefit (e.g., exact measurements of the liquid soap consumed/remaining for Carwash Champions) or relaxed where needs are “eyeballed” and approximated.  Designating a bookkeeper, treasurer, or accountant who will record and track sales will be very important to the SBE.
Cash management is also critical, since “current” funds change rapidly.  Ensuring that funds are coming in to cover subtracted costs ensures that payments can be made that will not halt the SBE‘s operations.  For example, five customers write checks that will not be deposited until the next day.
The bank account balance is very low since expenses were all recently paid at once.   Supplies are nearly empty, but there is no ability to pay for more.  Without reserve funds or credit, the SBE would not be able to function until a positive account balance is restored.  This simple phenomenon occurs very frequently unless there is a cash management strategy in place.
1.	Did all the expenses have to be paid at once, or could some have waited (with or without penalties)? 
2.	What borrowing (credit) is available in financial emergencies?  Is the “petty cash” amount large enough? 
3.	How frequently is the account being monitored? 

Do policies need to be changed regarding payment (checks)?  This is an excellent example of how accounting priorities can potentially conflict with marketing priorities (i.e., cash needs versus potential lost sales).
Budgeting projects accounting and current cash management functions into the future.  Questions regarding how much the SBE has, expects to make, and owes impact several important budgeting decisions regarding: 
4.	Overall growth or retrenchment 
5.	Investment  
6.	Risks and rewards
Classroom Exercise!
Exercise 6: Inflows and Outflows 
Hold a discussion with students about money handling with scenarios:  
Scenario 1:  Mixing funds 
Someone needs to run to the store to get supplies, and the petty (reserve) cash box is empty.  Should the treasurer borrow money from students or teachers to pay them back later?  Why or why not?
Funding is ideally never mixed.  This scenario shows the importance of reserve funds or a line of credit and can lead to a discussion of interest rates and penalties.
Scenario 2: Transaction Timing
The treasurer forgot to add a receipt into the expenses from last week, and the totals have already been completed.  Should she/he add it to this week or make an adjustment to last week‘s totals?
Decisions to make adjustments may depend on an accounting policy (e.g., no adjustments) and the size of the amount in question.  What impact do adjustments have on budgeting and forecasting?
Scenario 3: Lost Money
The expected cash for the day was $100, but only $95 was found.  What policies are in place for missing cash?  Is there a dollar or percentage-of-sales range for losses?  Is there a warning given with or without training/re-training? Should the treasurer notify everyone working of the incident to make sure everyone will “be careful,” or are there other considerations such as embarrassment?  If an extra $5 is found, are the actions taken similar or different?
Cash handling issues such as these need careful discussion and are the responsibility of the treasurer (or a similar designation). 
Step 7:  Emerging Market Expansion or Retraction 
Scanning the environment for Opportunities and Threats can identify emerging markets and change the focus of efforts to expand or retract. The constant question is whether current opportunities are being taken advantage of.
For example, the ability to target specific groups of current and potential customers is expanding greatly through the use of MySpace, Facebook, Yahoo Groups, and a host of social networking sites.
Interest groups centered on activities and sports (e.g., local bike riders, bowlers, minor league baseball fans) to parent groups (e.g., PTA, child welfare supporters) and others can be targeted and/or the SBE can form a new group moderated by the SBE teacher. 
Classroom Exercise!
Exercise 7: Market Makers and Takers 
Ask students to describe products, services, or messages that have changed since they were younger.  Discuss how new markets have been created and other markets have been replaced through the use of technology, changing consumer preferences and expectations, and global trade patterns.  For example, what competitive advantages do companies have when they give customers more information, and how has two-way communication changed how businesses retain customers?
Ask students to find examples to share with the class.  Suggestions can include companies that:  
•	Allow customers to check their account balances and transaction history and update their contact information online 
•	Give the option of “opting in” or “opting out” of targeted advertising messages. 
•	Update customers about changed information (e.g., We‘ve moved! or Our hours have changed!)
How have services such as these changed customer preferences and expectations and created new markets? 

Step 8:  Partnering and Vendor Relationships 
Partnering provides an ability to share resources to achieve mutual benefits.
Resources can include customer information, space, time, advertising, and communication channels.
Mutual benefit examples include: 
•	In exchange for an information or sign-up booth at an event, volunteer time can be provided to the event organizer
•	Payment terms, such as net 30/60/90 days (early payment discounts), free delivery, and bulk order rebates, can benefit both the enterprise and its vendor  
•	The enterprise can print bookmarks or fliers about an upcoming city/county event that also has information about the SBE in exchange for postage or distribution at public libraries
•	Reciprocal Web site links  
Intangible exchanges, such as recognition, testimonial praise, or thank you lines can provide additional relationships. 
Classroom Exercise!
Exercise 8: Potential Partners 
 Ask students to brainstorm potential partners for the SBE starting with the school and moving outward.  Differentiate “tie-ins” from partnerships, where tie-ins are short term and event driven and partnerships are long term.  Potential questions include: 
•	What are the advantages and disadvantages (risks) to partnering?
•	How feasible are partnerships in terms of their ease or difficulty?
•	Can partnerships be prioritized as short or long term? 
•	What supporters or contacts are needed to get a foot in the door? 
•	What are the barriers to gaining or maintaining a partnership?
•	 How can these barriers be overcome? 

Chapter 4: Phase III – Evaluating
In this section, you will learn about the three steps for evaluating your micro-enterprise: 
•	Step 1: Goal Outcomes and Impact
•	Step 2: Social Viability 
•	Step 3: Sustainability Development
Planning  Implementing  Evaluating 
Of the three step process which includes planning, implementing, then evaluating, this section details the last process, evaluating.
Evaluating 
Phase III is an overall evaluation of the steps in Phases I and II in relation to the future of the SBE.  While the forthcoming Steps 1 through 3 provide areas for concrete progress indicators, evaluation should also represent a step back from the day-to-day activities to “see the forest through the trees.”
Questions such as the following can guide this process:  
•	What things could have been done differently and why? 
•	Is the SBE closely aligned with its Mission, Vision, and Values? 
•	Are there policies and procedures that need to be changed? 
•	How has input from the point of product/service/message delivery been used?
•	What additional information would be helpful?
Step 1:  Goal Outcomes and Impact 
Evaluation goals that were created before the enterprise began have ideally been evaluated recurrently at set intervals described in Implementing Step 2, so the emphasis in the evaluation phase is on overall progress or areas for improvement that follow trends. 
Figure 10. Example of chart showing time intervals
This figure shows four periods at different time intervals. The target goal is 92 and the stretch goal is 96. 
•	Period 1 – 89
•	Period 2 – 92
•	Period 3 – 100
•	Period 4 – 100 
Classroom Exercise!
Activity 1: Right on Target or Room for Growth? 
1.	Ask students to create their own charts that illustrate prior time intervals.  If they had selected targets with stretch goals, ask them to indicate these within the charts (see Figure 10). 
2.	Ask students to create a report that explains where the chart increases, decreases, or remains the same, in addition to how closely their goals were met.
Students can also be asked to evaluate whether there is a difference between starting lower and ending higher or vice versa, and how a manager looking at charts like these would know about details that are not shown (e.g., problems that were beyond a student‘s control, such as becoming ill, experiencing a family crisis, etc.).
How do averages and scales change the interpretation of charts?
Students can also be asked to create or evaluate the overall trends for the enterprise and write about how they contributed.
Step 2:  Social Validity 
Social validity is the critique of the enterprise by students, teachers, supporters, and partners.  How satisfied is everyone with the enterprise in terms of the levels of:
•	Student development? 
•	Perceived benefits, costs, and usefulness? 
•	Interesting activities/engaging experiences? 
•	Fun and enjoyment? 
•	Applicability to real-world scenarios? 
•	Being on-target (e.g., meeting the needs of the students, school, and community)? 
•	Quality? 
Classroom Exercise!
Activity 2: Effectiveness and Efficiency 
 Ask students to create questions for a satisfaction survey by posing the question,  
How can we know if we were effective and efficient in accomplishing our mission? 
Effectiveness is the achievement of desired effects (i.e., what the enterprise would do), and efficiency is the gain in outputs versus inputs. 
Step 3:  Sustainability Development 
Sustainability will ultimately be determined by the SBE‘s ability to constantly adapt to change.  Monitoring internal and external developments through the SWOT analysis described previously will provide the basis for realigning the organization‘s strategies and activities while maintaining the overall mission.
Ongoing maintenance of a support network is vital as supporters move, change responsibilities and commitments, and sometimes forget how much they are needed or have an impact.  The parable of having to nurture relationships like plants (lest they wither) rings true, and networking and updating contact information through periodic emails, holiday cards, and other means are simple ways to ensure support of their importance and impact.
Diversification is widely used in financial planning to reduce risks, and as a financial vehicle the SBE can similarly build on its accomplishments to broaden its portfolio.  For example, can newly developed areas of expertise, such as mentoring or tutoring, be used to create additional, revenue-generating SBE activities? 
Classroom Exercise!
Activity 3: Onward and Upward 
Sustainability is at the heart of student achievement.  Ask students to reflect on their short- and long-term SBE experiences to create a list of five or more leverage points or specialized areas of competency that can be used independently (Olson & Raffanti, 2006).  What have they learned and how have their relationships changed (with others participating in the SBE)?  How can students support one another in the future?  How can they develop their skills outside of the SBE?   Did they overcome barriers?   Do they feel confident in their abilities?
Then ask students to relate these to their short- and long-term goals.  What is the importance of maintaining a social network and what can they do to make sure this happens?  How sustainable are their skills and what do they need to do to maintain them?  Do they want to be specialized or diversified, and what are the advantages and disadvantages of each?  Any of these questions can serve as a launching point for a classroom activity that reflects on the lessons learned and translates these into future opportunities. 

Chapter 5: Discussion 
In this chapter, you will read some concluding thoughts about setting up a micro-enterprise.
Discussion 
School-based enterprises (SBEs) provide an economic, social, and educational return to the student, school, and community.  The overriding goal of SBEs is to assist students with establishing and maintaining independence by complementing “real-world,” hands-on activities with in-school learning exercises and reinforcement.  The overall outcome is “productive adulthood”‖ (Quinn, 1999, p. 113) through successive achievements.  Students can directly apply their SBE experiences to self-employment and small business start-up, their work within larger organizations, and their community development activities. 
The Planning, Implementing, and Evaluating diagram below was used to illustrate a continuous progression that reflects these efforts.
Planning  Implementing  Evaluating
The arrow that exits the evaluation phase progress as a loop that continuously feeds back into Planning.  Because the SBE and its students will encounter events that are challenging and unexpected, it is hoped that this continuous process will be met with confidence and a set of organizational tools that will help them to succeed.
Planning, implementing, and evaluating (which involves researching, brainstorming, and organizing the seemingly inexhaustible considerations) make SBE start-up and sustainability both rewarding and daunting.  The greatest comfort to the devoted individuals spearheading the effort is that support can be found where there is a stake in the SBE‘s success.  Stakeholders include administrators, corporate sponsors, parents, volunteers, media contacts, and many others who will benefit from students’ achievement of improved and sustainable outcomes, adaptability to changes in society, and contributions to current and future generations. 

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Appendix 
General Resources on Enterprise Development
This appendix includes general resources related to or supportive of micro-enterprise efforts.  There is certainly no shortage of “small business start-up” resources, which are helpful in understanding and breaking down the steps to new business planning.  Much of the same information is available online or within older, used editions of the resources listed.  The major gain from reviewing multiple sources such as these is to generate product creation and marketing ideas.
Herzog, R. (1998). Unlikely entrepreneurs: A complete guide to business start-ups for people with 	disabilities and chronic health conditions. Traverse City, MI: North Peak Publishing.  
Kushell, J. (1999). The young entrepreneur's edge: Using your ambition, independence, and youth to 	launch a successful business. New York, NY:  Random House.  
Luther, W. M. (2001). The marketing plan: How to prepare and implement it. New York, NY: American 	Management Association.
 Mariotti, S. (2000). The young entrepreneur's guide to starting and running a business. New York, NY: 	Times Business.  
National Collegiate Inventors and Innovators Alliance. (2002). Getting started as an entrepreneur: A 	guide for students. Hadley, MA: Author.  
Pakroo, P., & Repa, B. K. (2004). The small business start-up kit. Berkeley, CA: Nolo.  
Pinson, L. (2004). Anatomy of a business plan: A step-by-step guide to building a business and securing 	your company's future. Chicago, IL: Dearborn Trade Publishing.  
Pinson, L., & Jinnett, J. (2000). Steps to small business start-up: Everything you need to know to turn 	your idea into a successful business. Chicago, IL: Dearborn Trade Publishing.  
Robins, S. P., & Coulter, M. (1999). Management (6th ed.). Upper Saddle River, NJ: Prentice Hall.

Relevant Web Sites and Resources 
Bridging Opportunities to Self-Sufficiency 
http://www.self-sufficiency.org/
The Martin County Florida School District Department of Vocational, Adult and Community Education and Tri-County TEC (Training-Employment-Community) corporation received State Leadership funding from the Florida Department of Education to produce a manual for educators and human service professionals titled “Bridging Opportunities to Self-Sufficiency” (BOSS).  BOSS includes an overview of strategies for development and implementation of the Micro-Enterprise process.
Center for Entrepreneurial Leadership Ewing Marion Kauffman Foundation 
http://www.kauffman.org/
The Kauffman foundation provides grants to school districts to further its interest in “education and entrepreneurship.” The site states that funding includes “idea grants to get innovation moving, seed grants to pilot and test good ideas, and scale grants to refine and bring good programs up to scale.”‖
Small Business and Self Employment for People with Disabilities & Entrepreneurship: A Flexible Route to Economic Independence for People with Disabilities (U.S. Department of Labor)
http://www.dol.gov/odep/pubs/ek00/small.htm
http://www.dol.gov/odep/pubs/misc/entrepre.htm
The first link is to a brief macro overview of small business development for people with disabilities in America.  Bullet-point considerations for benefits and challenges are provided.  The second link is to another brief discussion on the same topic that includes benefits, barriers, success stories, and resources.
Self Employment/Entrepreneurship/Diversity World http://www.diversityworld.com/Disability/selfempl.htm
This site provides a couple of articles on entrepreneurship, self-employment, and disabilities.  The second article cautions against self-employment in favor of supported employment where “necessary supports, both natural and rehabilitative are not available” and where “a good match with business supports and market development” are unaccounted.
Business Development and Self-Employment 
http://www.rcep6.org/resource_center/Employment/business_resources.htm
This site provides a large listing of business development and self-employment resources for business assistance information and sources for funding.
Presidential Task Force on the Employment of Adults with Disabilities (PTFEAD) Workworld  
http://www.workworld.org/ptfead.html
This site details the federal development originating from the 1998 Presidential Task Force on the Employment of Adults with Disabilities (PTFEAD) to the current Presidential “New Freedom Initiative”‖ that incorporates the goal of eliminating barriers from participating fully in community life for people with disabilities.
The Abilities Fund 
http://www.abilitiesfund.org/
This organization states that it “receives requests for assistance from prospective business owners each day from all parts of the United States.  Our primary goal is to obtain all necessary information to properly guide these individuals on the right path toward realizing their self-employment goals.  Ideally, we seek to find a local micro-enterprise organization that is near the individual geographically and make a referral so the client can receive direct assistance.”‖
Distributive Education Clubs of America (DECA): An Association of Marketing Students http://www.schoolbasedenterprises.org/
Resources on this site include a guide titled”Starting and Managing a School-based Enterprise,” and case studies within the document “School-based enterprise project: Best Practices.”‖
Road to Self-Sufficiency: A Guide to Entrepreneurship for Youth with Disabilities 
http://www.ncwd-youth.info/resources_&_Publications/entrepreneurship_guide.html
This guide presents an overview of entrepreneurship and describes why entrepreneurship education is relevant today.  It also examines entrepreneurship education programs and different activities that can be incorporated in those programs, in addition to a detailed description on how National Content Standards and the Guideposts for Success framework can drive entrepreneur programming.  The Guideposts for Success, developed by the NCWD/Youth in collaboration with the U. S. Department of Labor's (DOL) Office of Disability Employment Policy (ODEP), is a comprehensive framework that identifies what all youth, including youth with disabilities, need to succeed during the critical transition years to adulthood.  Additionally, this document identifies legislation that supports entrepreneurial activities for youth with disabilities.  It also describes the importance of accommodations in providing inclusive entrepreneurial programs and depicts the significance of financial planning and financial options for people with disabilities.  

Florida Department of Education 
Dr. Eric J. Smith, Commissioner
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