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Objective: Learn to calculate the costs required to start a venture
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Total Time: 90 Minutes
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Materials Required: Print Out of Costing Sheet
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Instructor Note:
Read on basics of costing/pro-forma income statement
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Opening Protocol:
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Greet the participants
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Take attendance
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In pairs, ask participants to share with each other how they are feeling
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Recap the previous session by asking 1-2 participants to share with the class, what they learnt and did in the previous session
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5 Minutes
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Opening Activity:
Introduce the session with the next challenge “How might we evaluate the financial feasibility of our business solution?” Revise the “Entrepreneurial Process” and ask students to reflect on the stage they are at in the process for their business ideas. Emphasise on how it is time to start thinking about the monetary part of their business now. P
ose a question “What are some questions you would ask regarding the finances when you are starting a business?”
Key Responses:
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What is the price of all the services or products your business plans to offer?
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How much money are you going to need to start and run the business?
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How will you source the money you need to start the business?
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How much money will you make from the business?
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How much time will it take for your business to become profitable?
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5 Minutes
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Concept discussion:
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Startup cost, operational cost, cost vs. expenses
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How to calculate cost using costing sheet
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How to prepare income statement
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How to prepare cash flow projection
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After 15 minutes, randomly ask group members to share their learnings
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Involve everyone in the discussion to ensure that all the participants understand all the concepts
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20 Minutes
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Activity 1: Savitha Sari Shop
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Divide participants in 2 groups
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Ask everyone to read the case of “Savitha Sari Shop”in the handbook
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Ask all the participants in group 1 to fill Income Statement
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and group 2 participants to fill cash flow projection sheet in their own handbooks
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Give them 10-15 minutes to do that
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Then ask all the group members to match their statements
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Explain the right way of doing it
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20 Minutes
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Project Time:
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Ask participants to sit with their groups as they are going to use 15 minutes to work on their business plan project
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Ask them to costing sheet, income statement and cash flow projection for their business idea
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25 Minutes
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Debrief:
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Ask any one group to come in front and share their statements and projections in front of everyone
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Trainer can use this group’s work as an example to share feedback and suggestions to guide participants
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10 Minutes
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Closing Protocol:
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Thank the participants for their time
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Announce the next time you will be visiting them
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Share the topic of the next session
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Collect 1-2 most interesting activity sheets/artefacts from students and show to Nodal officer and institution head after session
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Click pictures of the artefacts for documentation
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5 Minutes
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