Learn

What will help my business make more money?

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

“Bicycle or Chickens?” (No video? See script on page 102.)

Read:An asset is something a business owns that is valuable. You can buy and sell assets. For example, Maria could buy a chair to sit on when selling eggs and she could sell a chicken. These are assets.

A productive asset makes money for a business. Maria’s hens are productive assets because they produce eggs, which Maria sells for money. A chair is an asset, but not a productive asset. It doesn’t make money.

Discuss:Successful business owners use productive assets to grow their business. How can a sewing machine or bicycle be a productive asset?

Successful business owners use productive assets to grow their business.

Practice:Choose a partner. List the productive assets your business already has:

Read:QUESTION OF THE WEEK—How do I use productive assets to grow my business?

ACTION OF THE WEEK—I will identify the assets I have and determine how to make them more productive. I will identify and prioritize other assets I need.

How can I make my assets more productive?

Read:Read the scripture on the right. We must use assets wisely. We take care of our assets so that they can be very productive.

“Thou shalt be diligent in preserving what thou hast, that thou mayest be a wise steward.”

Doctrine and Covenants 136:27

Discuss:What would happen to Maria’s business if she did not take good care of her productive assets (her chickens)?

Practice:Now, look at these business assets. Which of the following assets are currently productive assets?

SEWING MACHINE

Gloria is sewing many shirts today.

BROKEN BICYCLE

David hopes to fix his bicycle and use it soon.

HEN THAT DOESN’T LAY EGGS

Maria is waiting to see if her hen starts laying eggs.

Read:We need to use our assets as productively as possible. Read the following example of a wise steward.

GLORIA’S SEWING SHOP:

Gloria had one sewing machine. She took good care of it. She could sew five shirts each day. Her customers wanted more shirts.

She thought of hiring a helper and buying another sewing machine. But instead of buying another sewing machine, Gloria hired her friend to sew with Gloria’s machine during the night. Now Gloria’s business is able to make 10 shirts each day with one sewing machine.

Discuss:How was Gloria a wise steward with her productive asset? How can you make your own assets more productive?

How can I get more productive assets?

Practice:Think of assets that you could get that would help you grow your business. List them below.

TYPES OF ASSETS	ASSETS I HAVE	NEW ASSETS THAT COULD HELP GROW MY BUSINESS
Tool/Machine
Vehicle
Building
Animal
Other

Practice:Form a group with two other people. Discuss why these assets would help your business grow.

Practice:How could you get the assets you listed on the previous page? Below is a list of ways business people get new assets. Divide into groups of three, and discuss the advantages and disadvantages of each option. List them below.

WAYS TO GET THE ASSETS	ADVANTAGES	DISADVANTAGES
Save to buy an asset
Get a partner who has an asset
Rent an asset
Borrow an asset
Get a loan to buy an asset
Other

Practice:Now, with the same small group, discuss the following:

Which asset would be the most useful for your business right now? How much money will it help you make? How easy would it be to get? What are some of the ways that you could pay for the new asset?

Watch the success story “Susy: Private School Bus” to see how Susy has improved her business already and how she plans to get a productive asset. (No video? Skip to the next page.)

How can I control costs?

Read:Productive assets help our businesses make money. To grow our businesses, we also need to control costs. But not all expenses are the same!

“Careful with Fixed Costs” (No video? Read page 103.)

Read:Variable costs increase or decrease with sales.

Fixed costs must be paid no matter how much or how little we sell.

Successful business owners only add fixed costs when they know they will help the business make more money.

Practice:Look at Daniel’s business expenses. Circle fixed or variable for each expense.

Successful business owners only add fixed costs when they will increase profits.

DANIEL’S BUSINESS EXPENSES
Rent for shop	Fixed	Variable
Wood for furniture	Fixed	Variable
Delivery costs	Fixed	Variable
Daniel’s wage	Fixed	Variable

Practice:List your own business expenses. Circle variable or fixed for each expense.

MY BUSINESS EXPENSES
	Fixed	Variable
	Fixed	Variable
	Fixed	Variable
	Fixed	Variable
	Fixed	Variable
	Fixed	Variable
	Fixed	Variable
	Fixed	Variable

Read:During the week, we will record our income and expenses, showing which are fixed and which are variable, and we will bring our income statements to our next meeting.