Socratic Intro
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- What is a business?
[await answers]
A business is a good or service that seeks to make a profit by improving people's lives.
- What are some things you have enjoyed or relied on in the past day and were they a good or service?
[await answers]
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Most jobs work for a business. You can join someone else's business and help make run or even grow it.
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- Let’s start our own business. What shall we create?
[narrow kids suggestions to 2 business for them to vote on which we choose (lemonade stand, soccer club, YouTube streamer)]
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Lead a roleplay of the chosen business
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Starting up
- List and discuss startup costs
- How to fund the costs before you start earning money
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Operating
- Variable costs
- Gross margin
- Revenue = gross margin x volume
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Net Profit
- Gross revenue - fixed costs
- Deducting financing costs
- Income per owner
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The underlying advantage of being an owner vs employee
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How income scales with hours for employees vs volume for owners
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$20 per hr
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Vs
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COGS that scale with customers
Fixed cost
Profit per hour plotted vs volume
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![notion image](https://www.notion.so/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2F0cf10c00-9599-48d1-b309-4bb16acbc805%2F8e008e54-67bd-4ddc-9713-3e6e11662c76%2FUntitled.png?table=block&id=27979a82-c9a9-4a93-868c-36b5e9fd332e&cache=v2)
![notion image](https://www.notion.so/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2F0cf10c00-9599-48d1-b309-4bb16acbc805%2F449604a5-49fe-4b84-a88b-6c0afa4ec127%2FUntitled.png?table=block&id=617c71f8-8ff4-43c0-9041-e9f016f806cc&cache=v2)
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Other concepts:
- Fuzzy distinctions: Jobs and ownership very in responsibility/creativity/and autonomy (owning a franchise is like a job and some jobs are like being an owner)
- The innovation of limited liability and limited partners — most you can lose is your starting capital and your time
- Different types of business models
- B to C vs B to B
- Do all business make a profit? (No, Khan Academy…but still needs to cover costs)
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Lead Into Session III
Investing: Separating savings for a rainy day vs long-term savings
How to treat each of those 2 buckets