Starting and Growing My Business

Contents
Introduction
Table of Contents
1: How do I start or improve my business?
2: What do people want to buy?
3: How do I buy my product and set the sales price?
4: How do I know if my business is making a profit?
5: How do I separate my business and family money?
6: How is my business progressing?
7: How will I grow my business?
8: How much can I afford to invest to grow my business?
9: How do I know if I should use a loan to grow my business?
10: How will I attract more customers and close sales?
11: How will I increase my profits?
12: How do I continue to improve my business?
Am I Progressing
Letter of Completion
Business Success Map

Learn

“Learn,” Starting and Growing My Business (2014), 34–38

“Learn,” Starting and Growing My Business, 34–38

Learn

Would I want this business?

Time:Set the timer to 60 minutes for the Learn section.

2:3

“A Bigger Truck?” (No video? Read page 42.)

Read:If these two men could transport 200 melons in a truckload, the math would look like this:

Discuss:Would a larger truck help? Why or why not?

Read:QUESTIONS OF THE WEEK—How do I buy my product and set the sales price?

ACTIONS OF THE WEEK—I will find a source for my product and choose a price.

Read:During this meeting, we will learn and practice skills to help us answer these questions and perform these actions.

Practice:Then, during this next week, you will learn how to talk with suppliers to “buy low,” or buy at a low price. You will also learn how to set a price in order to “sell high”—that is, make a profit.

Let’s read the Costs and Sales section of the Business Success Map.

How can I make a profit?

Read:The melon guys need to start making money at their melon business.

There are two ways to make a profit.

Lower the purchase price (the price you pay the supplier).

Raise the sales price (the price you charge the customer).

Sometimes you can do both: buy low and sell high!

Read:We do not have unlimited control over sales price or our costs. We do have some control. Successful business owners try to increase the sales price and decrease the purchase price.

Discuss:Do you think the businesses where you buy your food, fuel, and clothes make a profit?

Read:Here is another reason to buy low and sell high. All businesses have more expenses than just the cost of the product.

Think about the melon guys. Suppose they learn how to buy low and sell high. Still, they have other costs, like transportation and wages. Review this.

Read:By buying low and selling high, the men were able to cover costs, pay themselves wages, and still make a little profit. This is starting to be a real business!

Discuss:If you’re in a service business, what can you do to control costs and be more profitable?

How do I decrease costs?

2:3

“Don’t Close Your Business” (Parts I and II) (No video? Read page 43.)

Discuss:What would you have done? How many suppliers should you have?

How do I work with suppliers?

Read:It is crucial for us to talk with our suppliers.

2:3

“Talking to Suppliers” (No video? Just continue reading.)

Read:This week, speak with people who can supply you with your product or your product ingredients. If you are offering a service, speak with people who will help you provide your service. Write what you learn in your business notebook.

Practice:With a partner, practice the questions you will ask suppliers this week. Explain to your partner the kind of supplier you need to talk to for your business. Take turns asking the questions and giving helpful feedback. Take notes in your business notebook. Ask specific questions that will help you improve your business.

INTRODUCTION: Hello, I’m ___ (name). And you? I’m thinking about starting a business where I would need the products you supply. May I ask a few questions?

PRODUCT

What products sell best for you?
Why do you think business owners buy what you supply?
How do you check for quality? (Try to observe quality.)
How much can you supply? Do you have production limits?

PRICE

How much do you charge? Do you offer any discounts?
How did you decide on these prices?
What do you think would happen if you changed prices?

SALES, COMPETITION

Do you help your buyers sell the product?
Who buys the most of your product? Why are they successful?
Who are your competitors? What is unique about them?

Add any other questions you have. Be sure to thank them and write down what you learn!

Discuss:Once all have practiced at least once, discuss together:

What will you do as you speak with suppliers this week? Do you have any more questions to ask them? Write your thoughts here or in your business notebook:

How do I set my price to make a profit?

Read:Every business has to earn more than it spends. We know how we will talk with suppliers to find quality products at low cost, or buy low. Now, how will we set our price, or sell high? As we make this decision during the week, each of us might ask:

What’s the best cost I can get from my suppliers?
What other costs do I have? (Utilities, supplies, rent, etc.)
What wages do I need to pay myself and others?
How can I add value and make my product different? Convenience, service, friendliness, and quality can all add value and make me different.
What do competitors charge? Can I charge more based on added value?
Given all these factors, how much profit can I make so my business can grow and succeed? More is good!

Practice:With a partner, read the following and discuss how much Grace’s customers might be willing to pay for her water.

Grace buys water for:	5 per bottle
Her wages, transportation, and delivery costs:	2 per bottle
Competitors sell to customers for:	8–10 per bottle
She needs to make as much profit as possible:	? per bottle

Tell the group the price you decided Grace should set for her water and why.

Discuss:How could Grace discover how much customers are willing to pay?

How can you control costs, add value, and set the right price so your business can make a profit?