Learning Objectives
Understand the course curriculum and expectations. Understand the traits of successful entrepreneurs. Understand the concept of market segmentation, demographics, psychographics and niche markets. Understand how to create a simple customer profile. Understand how to prepare a personal financial statement.

Entrepreneurship: Startup & Growth
Session 1
Date:
Instructor Topics (60 min.)
(20 min.)	1.	Getting the Class Started
Collect student registration forms, collect money, distribute books
Have administrator and staff or sponsors introduce themselves
Introduce yourself with a brief history to build credibility
(15 min.)	2.	Course Introduction
Course overview, books, and session dates
Explain class structure
(5 min.)	3.	Expectations
Student responsibilities
Instructor responsibilities
(20 min.)	4.	Student Introductions—see Additional Instructor Notes
—NO GUEST SPEAKER THIS SESSION—
Break (20 min.)
Refreshments
Networking activity
Instructor Topics—continued (40 min.)
(30 min.)	5.	Thinking Entrepreneurially
Self-Assessment and Business Goals
Assessing Your Business Idea
Finding Your Business Niche
(10 min.)	6.	Introduction to the NxLeveL® Business Plan
Work Period (60 min.)—see Additional Instructor Notes
Assignment for Session 2
TEXT	Read Chapters 1 through 4 (Thinking Entrepreneurially, Assessing Your Business Idea, The NxLeveL® Business Plan, and The Marketing Plan). WORKBOOK	Complete the worksheets in Workbook Session 1. WRITE	After completing the Session 1 worksheets, follow the instructions on the Writing Your Business Plan page at the end of the worksheets to write Section III. Business Organization and Operations: A. Business Structure, Management and Personnel (Personal Background Information) and Section V. Financial Plan: D. Financial Statements (Personal Financial Statement).
Additional Instructor Notes
Session 1
Items 1 through 3 are self-explanatory (see OHDs 1-1 through 1-4)
Student Introductions
Option 1
Break the class into groups of two or three. Each member of the group will introduce one of the other members in that group. They have five minutes to interview their partner and find out the following information: name, business idea and reason for taking the course. They should also notice something unique or interesting about that person (e.g., a personality trait or mannerism).
One at a time, have students make their introductions. Write key descriptive words on the board. This is your lead-in to the self-assessment theme of this session. It also bonds the group for future networking, if done properly and with a sense of humor.
Also, listen for the reasons people are taking the class. This can lead to useful discussions about success, failure, insecurities, planning, family matters and so on.
Option 2 (for larger classes where Option 1 would take too long)
Ask students to introduce themselves in turn. They should describe their business ideas, explain why they’re taking the class, and describe what they think is their best and worst personality trait from the standpoint of running a business. Again, write down the key words for use during the discussion of self-assessment and entrepreneurial characteristics.
Thinking Entrepreneurially
Use OHD 1-5 to discuss traits of successful entrepreneurs. Where possible, relate these traits to the key words you recorded during the introduction exercise. Ask the question: What do these traits have in common? The answer: They can all be learned and practiced.
Self-Assessment and Business Goals
Have students turn to the Entrepreneurial Traits Worksheet on page 1-5 of the WORKBOOK. Give them two minutes to complete this self-assessment. Encourage them to be honest in their responses.
Next, ask students to look at statements for which they gave themselves a 3 or less. Ask the questions: How does this affect your ability to succeed in your business? What can you do to improve in this area? Discuss possible resources for help, guidance and knowledge.
Personal and business goals
When you launch or expand a business, it often becomes a central part of your life. Therefore, your business goals should be in tune with your personal goals.
Use OHD 1-6 to talk about setting personal and business goals. Ask the questions: What are your goals? Have you written them down? Explain the importance of doing so.
Assessing Your Business Idea
Startup and expansion ideas normally entail one of the following concepts:
Selling a new product to a new market
Selling a new product to an existing market
Selling an existing product to a new market
Selling an improved product to an existing market
Each approach has pros and cons. Selling a new product means you’ll have fewer competitors at first, but it may involve more risk and expense. Selling an existing product means you’ll probably have a better idea of the size of your market, but it may be harder to get noticed.
Which approach is best for you? That depends on your skills and interests, as well as the current market trends. Have you heard people complaining about an existing product, or expressing a desire for something that’s not currently on the market?
Remember: A great business idea doesn’t have to be something no one’s ever done before. Some of the greatest innovations are spinoffs or improvements of an existing idea.
Use OHD 1-7 to discuss common sources of business opportunities.
Have students turn to the Business Opportunity Worksheet on page 1-15, and give them a few minutes to complete as much of it as they can. Then, discuss what these questions tell them about their startup or growth idea. If students have several ideas, stress that they need to choose one idea to work on for the rest of the sessions.
Ask the question: If you do your best to answer all these questions, and you conclude that your idea is probably not viable, does that mean you should scrap it and start over? Not necessarily! Maybe the idea just needs a minor adjustment. Often, a small change in design, marketing or distribution can save an idea that seems like a dud. Or maybe you just need more time to prepare yourself—or find a partner—to launch the venture. Don’t scrap an idea without considering how you can improve it!
One last point: The idea you choose should seem viable to you, as well as to your family, friends and mentors. But it should also excite you. Entrepreneurs who are passionate about their idea work harder, enjoy themselves more, and are more likely to succeed.
When you’ve found a promising business idea, what does it take to make it succeed? Use OHD 1-8 to discuss questions you must answer to bring your dream to reality. Explain that it’s not necessary to answer all these questions right away. The first step is to figure out what you don’t know. Then, you can work to fill the gaps in your knowledge. That is the purpose of this class!
Finding Your Business Niche
A market consists of sellers who compete to meet the needs of buyers.
Mass markets consist of many customers with general needs, such as food and clothing.
Niche markets consist of a small group of customers with very specific needs, such as gluten-free baked goods or handmade wedding dresses.
Small businesses usually target niche markets, because it’s more manageable and takes much less startup capital. Also, there’s often less competition. Use OHD 1-9 to discuss the characteristics of a viable niche market.
Market segmentation
Market segmentation is the process of breaking a mass market into smaller target markets. It helps you find the primary target customers who are most likely to buy your product, which reduces the time and money you must spend on promotion.
Example: We all wear shoes, but we don’t all wear every kind of shoe. Joggers are more likely to wear running shoes, people who go hiking are more likely to wear hiking boots, and people who live in rural areas are more likely to wear cowboy boots.
Ask the questions: What kind of person is most likely to be in the market for hiking boots? What age range is more likely: 18 to 35 years old, or 55 and up? Also, consider factors like income, recreational preferences and geography (e.g., Chicago versus rural Wyoming).
This will introduce your discussion of basic segmentation methods. Use OHD 1-10 to show how customers can be segmented by common demographic, psychographic and geographic factors.
Demographic segmentation sorts customers by factors like age, gender, marital status, education, occupation and income.
Psychographic segmentation looks at opinions, culture, beliefs, values, lifestyle, recreational activities and entertainment preferences.
Geographic segmentation sorts customers into groups by country or neighborhood; by urban, suburban or rural environment; or even by climate (e.g., mild versus harsh winters).
Example: Skateboarders tend to be 25 or younger. But is everyone who’s younger than 25 in the market for skateboard parts? Of course not! That’s why you need psychographic data. Looking at lifestyles, opinions and even musical preferences narrows things down and also helps you to choose the right promotional strategy. Also, you’ll probably find more skateboarders in urban and suburban areas, and fewer in rural areas.
In fact, identifying people who are not your customers can be a good way to start segmenting your market. If you know that people over 60 rarely use your product, you can use that as a starting point. By defining who your customer isn’t, you’ll find out who your customer is.
Your customer profile
After identifying your target market, condense this information into short, clear statements to create a customer profile that describes your ideal target customer, like this:
My ideal customer is a woman in her late teens to early 30s. She lives in a city or a smaller college town and has at least some college education. She makes $30,000 to $50,000 per year and spends about $300 per year on beauty and grooming products. Of that, about $75 is soap and shampoo. She prefers organic, nontoxic products in recycled packaging. She usually buys online to save money, but she’ll pay a higher price for unique products from a local street fair or farmers’ market.
EXERCISE: Pair up students and have them work together on the Customer Profile Worksheet on page 1-18. Emphasize that this profile is just a rough draft. They will update it as they learn more about their market.
What makes your business idea unique?
Once you’ve segmented your market and found your primary target market, think about what you offer these customers that other businesses don’t. Ask the question: What do you think makes your business idea unique? What do you offer your customers that they can’t get from other businesses? Discuss differentiators, and ask students to give examples.
Don’t accept vague answers like “great customer service” or “high quality.” Examples should be concrete and definable. Example: A pizza parlor that delivers to parks and playgrounds.
Use OHD 1-11 to extend this discussion. Be ready with an example for each bullet point on the overhead (examples from student or local businesses are ideal). Emphasize the importance of telling stories and making local connections.
When considering these questions, always think about what you’re really selling. Are you cutting hair, or are you offering beauty and self-confidence? Are you selling child care, or are you offering security? Knowing what motivates your customers will help you find your niche.
Beginning the research process
NOTE: This is just a first look at the research process, so don’t go into too much depth. Explain that we’re not starting to do research at this point. We’re simply getting familiar with the idea of research, and thinking about the kinds of questions we’ll need to research as we move forward.
Again, use OHD 1-8 to discuss basic questions you must answer when starting a business. Ask the question: Where do you think you can find answers to these questions? Allow a brief time for discussion. Then, use OHD 1-12 to introduce helpful sources of business information.
Introduction to the NxLeveL® Business Plan
NOTE: Although current entrepreneurs may have been in business for some time, they may not know what a business plan looks like. Show them NxLeveL® sample business plans from the NxLeveL® business plan library. Stress that the marketing and financial sections of the business plan are the most important—and difficult!—parts of the plan, which is why we will spend most of our time in this class on these subjects.
Use OHDs 1-13 and 1-14 to briefly go over the outline of the NxLeveL® Business Plan. Explain the purpose of each section and tie those sections into the course sessions. You will go into more depth next session, so make this an overview only.
Next, have students turn to the Action Plan Worksheet on page 1-20 of the WORKBOOK. Explain how to use it. Suggest that they make additional copies of this worksheet so that planning becomes an ongoing activity throughout the course.
Ask the question: Did any part of our discussion today make you think of action steps you need to take? If so, encourage students to take a few minutes to write down these action steps.
Note that students should bring their Action Plan Worksheet to every session and use it to log new action steps as they come up. Emphasize the importance of researching costs.
Work Period
Workbook Preview—Session 1
NOTE: Depending on your class configuration, consider starting off Session 2 by asking a few students what they identified as weaknesses in this session’s self-assessment worksheets, and what action steps (if any) they identified to improve those weaknesses. If you decide to do this, tell students ahead of time so they won’t be caught off guard.
Have students look at the Worksheets Assignment for Session 2 on page 1-21 of the WORKBOOK. Explain how the worksheets in each session build the information needed for writing the plan. Show them that each session ends with a Writing Your Business Plan section, which details how to write the section of the plan for that session.
Suggest that students review the worksheets after reading the Session 1 text assignment.
Personal financial statement
NOTE: Some students may not be comfortable turning in a personal financial statement, either with the business plan or as a homework assignment. Stress that lenders will require this statement, but the information does not need to be shared with the class or instructor.
Have students turn to the Personal Financial Statement Worksheet on page 1-14 of the WORKBOOK. This statement is essentially a balance sheet showing assets, liabilities and net worth. Note that lenders look for a secondary means of paying back a loan if a business fails. A personal financial statement provides one view of that potential secondary source.
Use OHD 1-15 to explain how to complete the worksheet.
Assignment Review—Session 2
NOTE: Throughout the course, you can decide if you want to see individual worksheets or just the written sections of the business plan. Explain clearly how you want the sections of the business plan written, including any special guidelines you have developed for this particular class (e.g., will you accept handwritten sections?).
Have students look at the Assignment for Session 2 at the bottom of the Session 1 Student Outline. Stress the importance of reading this text before the next class.
Use OHD 1-13 and OHD 1-14 to show the NxLeveL® Business Plan Outline. Show students how the completed Session 1 worksheet pages will fit into Section III, Part A and Section V, Part D of the business plan.
Use the NxLeveL® sample business plans to show examples of these sections. Stress that this is only a draft of the business plan; it doesn’t have to be perfect.
Optional reading assignment
Depending on the makeup of your class, you may want to assign sections of Part VII: Managing Growth. Students with an existing business and a specific growth idea should read Chapter 28 Managing Growth. Students with an existing business who are looking for growth ideas may be helped by Chapter 29 Options for Growth or Chapter 30 Valuing and Buying a Business. Assign these chapters to individual students as appropriate, depending on their phase of development and business type. Otherwise, these chapters will be assigned in Session 9.
NOTE: If you choose to hold Session 2 in a library in order to introduce market research tools and methods, inform students now of the location change.
Overheads for Session 1
OHD	1-1	Course Overview
OHD	1-2	Student Materials
OHD	1-3	Class Agenda
OHD	1-4	Expectations and Ground Rules
OHD	1-5	Traits of Successful Entrepreneurs
OHD	1-6	Personal and Business Goals
OHD	1-7	Sources of Business Opportunities
OHD	1-8	Assessing Your Business Idea
OHD	1-9	What to Look For in a Niche Market
OHD	1-10	Segmenting Your Customers
OHD	1-11	What Makes Your Business Idea Unique?
OHD	1-12	Sources of Business Information
OHD	1-13	The NxLeveL® Business Plan Outline (Part A)
OHD	1-14	The NxLeveL® Business Plan Outline (Part B)
OHD	1-15	Personal Financial Statement Worksheet
Suggested Supplemental Materials for Session 1
Articles on the importance of business planning
Articles on stress and burnout in the entrepreneurial world, and how to handle stress
Information on local business resources (SBDC, chamber of commerce, WBC, MBDC, BIC, public library, trade associations, etc.)
Sample customer profiles (be sure to remove any personal information!)
Current articles on goal-setting in the business world
Current articles on juggling family and business responsibilities
NxLeveL® sample business plans (available to instructors at www.nxlevel.org)
You have the option of finding reputable articles and publications for use in class, or suggesting that students search them out on their own and share what they find with the rest of the class. Keep track of supplemental materials you used by making notes below. (This will be helpful if you choose to teach this course again.)
NOTE: Do not suggest that students read entire books on related subjects while taking this course. They have plenty of reading and homework to do, and tend to get overwhelmed by the amount of reading, research and writing already assigned.
Supplemental materials used in Session 1
Notes