Create Your Own Business Activity

Using concepts from your What on Earth is Economics Notes, Create a Plan to Open Your Own
Business

Did you know that small businesses are the backbone of the American economy? More than
half of the working population work in a small business. However, not all businesses are
successful. Smart planning can go a long way into helping make your business successful. Take
the time to plan out a potential business you’d like to open.

For other small business stats look here.

What would you name your business? Hidalgo What is your idea for a business? Selling
tacos Mexican food.

Is the product or service something that people
want or need? Can you make a profit selling it?
Does the product work? Yes, our product is
needed because we live in an area with a lot of
Mexican people. Yes, I can make a profit selling
them. The product works because a lot of people
like Mexican food.
What is the LONG term goal for your business?
What do you want it to look like in 5 years? 10
years? 20 years? The long term goal for the
business is to open up multiple food trucks
throughout the city.

What land, or natural resources, are needed for What labor, or paid workers, are needed for your
your small business? We will need a parking lot to small business? At Least three workers are
put the truck in. needed in the food truck.

What physical capital is needed for your small What human capital is needed for your small
business? Physical capital that is needed is a business? Cooks that know how to make good
truck, a kitchen, and many kitchen utensils. Mexican food.

Who is your target market? Who are you planning What will it cost to START your business? It will
to sell to the most? I plan on selling to many cost approximately $100,000
hispanics and people that like Mexican food.
Where will you get the money to start your Where would you like to locate your business? I
business? Saving up for it or getting a loan. would like to locate my business in a parking lot
near a busy street so people can see it.

How do you plan to get the word out (advertise) What are three qualities you want to see in your
about your business? Set up a big sign and have employees? Three qualities I want to see in
people review the food. employees is hard working, good cooks, and being
on time.

How do you plan to minimize the effects of “Price’s As an entrepreneur, how will “opportunity cost”
Law”? By employing less people and handing out affect your business? It will affect our business if
rewards from time to time to have them compete we have high prices because we will lose
and do their work. customers over time.

If you were to create a 30 second commercial advertising your product on television or radio, what would
you create? Describe your commercial in detail: First thing is say why we are better than other food
trucks, what types of food we have, and where we are located at.

Watch Big Government Kills Small Businesses Describe some of the challenges facing small
business today:
Summarize three challenges to small businesses: What do you believe is the solution to these
challenges?

High taxes Lower taxes for small businesses.

Too much regulation Let small businesses employ more people.

Health care prices Lower the prices for healthcare.

There are also numerous benefits to running your own business.

Skim 12 Reasons Why You’re Better Off Being Self-Employed and choose three benefits to self
employment
List three benefits to running your own business:

1.) You earn more money as an entrepreneur than working for someone.

2.) You can have all the sick days you want without getting in trouble by your boss.

3.) You set your own schedule and work whenever you want.
For further info and tips on starting your own small business, check out 21 Success Tips for
Young and Aspiring Entrepreneurs

The end