Entrepreneurial Finance Project: Eagle Lather Soap Company
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Entrepreneurial Finance Project: Eagle Lather Soap Company

Grade 11EnglishMathScience5 days
In this project, 11th-grade students take on the role of entrepreneurs for a fictional soap company to explore and apply financial strategies critical for business success. They research sources of capital, manage costs, understand financial terminology, and learn to budget through hands-on activities that integrate math and business concepts. The project encourages practical application of Algebra and Geometry in real-world business contexts, enhancing students' financial literacy and strategic planning skills.
EntrepreneurshipFinanceCapital SourcesBudgetingMathematical ConceptsBusiness StrategyFinancial Literacy
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Inquiry Framework

Question Framework

Driving Question

The overarching question that guides the entire project.How can students, acting as entrepreneurs for the Eagle Lather Soap Company, effectively gather, evaluate, and apply various financial strategies and knowledge to ensure the business’s growth, sustainability, and financial stability?

Essential Questions

Supporting questions that break down major concepts.
  • What is the significance of understanding various sources of capital in entrepreneurship, and how do these choices impact a startup's growth and sustainability?
  • How can entrepreneurs effectively identify and manage fixed and variable costs within their business model to ensure financial stability?
  • Why is it important for entrepreneurs to understand and utilize financial terminology, and how does this knowledge affect their ability to communicate and make strategic decisions?
  • How can developing a budget with components like an income statement, balance sheet, and cash flow statement contribute to a business's financial planning and management?

Standards & Learning Goals

Learning Goals

By the end of this project, students will be able to:
  • Understand and evaluate the various sources of capital available to entrepreneurs and their impacts on business growth and sustainability.
  • Identify and differentiate between fixed and variable costs as well as tax liabilities in a business setting.
  • Gain proficiency in financial terminology and its application in developing financial reports.
  • Create and analyze business budgets, including income statements, balance sheets, and cash flow statements, to support strategic financial planning.
  • Apply mathematical concepts related to rational numbers, equations, and matrices to solve real-world business problems as encountered in entrepreneurship.

Customized Academic Standards

ENT-FIN-1
Primary
Gather, evaluate, and share information on the processes, strategies, and systems needed to guide the financial organization of an entrepreneurial entity.Reason: Directly aligns with the project's focus on entrepreneurial financial management and strategic planning.
ENT-FIN-1a-d
Primary
Discuss, compare, and contrast sources of capital used by entrepreneurs; Identify fixed and variable costs and tax liability for startup and maintenance of a business; Explain the terminology used in financial reports; Create a tentative budget for a proposed business and explain the purpose of each component, including income statement, balance sheet, and cash flow statement.Reason: Clearly outlines the project focus areas in entrepreneurial finance, aligning closely with learning activities and goals.

Algebra I

ALG.I.1-3
Secondary
Understanding rational and irrational numbers; using matrices to organize and manipulate data; applying units and measurements.Reason: These mathematical concepts are essential for analyzing and organizing business financial data.
ALG.I.8-13
Secondary
Solving systems of equations and inequalities; applying equations in real-world problem-solving.Reason: This standard supports the ability to solve complex financial problems that arise in business scenarios.

Algebra II

ALG.II.1-5
Secondary
Understanding rational and irrational numbers; using matrices to organize and manipulate data; applying units and measurements.Reason: This supports students in the complex calculations necessary for financial analysis and reporting in business.
ALG.II.8-13
Secondary
Solving systems of equations and inequalities; applying equations in real-world problem-solving.Reason: Assists students in navigating financial challenges and strategic decision making through applied mathematics.

Geometry

GEO.1-2
Supporting
Understanding rational and irrational numbers; using matrices to organize and manipulate data; applying units and measurements.Reason: Geometry aids in spatial understanding which can be valuable in logistical planning and resource management in businesses.

Entry Events

Events that will be used to introduce the project to students

Social Media Campaign for Business Launch

Students are tasked with creating a social media campaign to launch their hypothetical soap company. This task incorporates elements of creative design and marketing strategies tied to financial goals, encouraging student-led inquiry into both traditional and digital business launch methods.

Escape Room: Break the Code of Business Success

An escape room setting with puzzles related to financial terms, budget creation, costs, and cash flow concepts needing students to solve them to progress. This challenges students to apply Algebra and Geometry principles actively to unlock actual business strategies, inviting inquiry into real-world business applications.
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Portfolio Activities

Portfolio Activities

These activities progressively build towards your learning goals, with each submission contributing to the student's final portfolio.
Activity 1

Capital Quest Adventure

Students embark on a journey to explore and compare various sources of capital for an entrepreneurial venture. They will research and evaluate options such as small business loans, angel investors, crowdfunding, and venture capitalists, considering how each impacts a startup's potential growth and sustainability.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Begin by choosing two different sources of capital to research in depth.
2. Use online resources, library databases, and financial journals to gather information on each capital source's advantages, disadvantages, and typical use cases.
3. Compare how each source would affect the startup's growth, sustainability, and financial positioning.
4. Create a presentation that summarizes your findings and provides a recommendation for the best capital source for the Eagle Lather Soap Company.

Final Product

What students will submit as the final product of the activityA comparison analysis presentation on two sources of capital, including recommendations.

Alignment

How this activity aligns with the learning objectives & standardsAligns with ENT-FIN-1a, as students discuss, compare, and contrast sources of capital.
Activity 2

Cost Detective Challenge

In this activity, students identify and categorize fixed and variable costs, and assess potential tax liabilities for the Eagle Lather Soap Company. This will help them understand how these factors influence the financial planning of a business.

Steps

Here is some basic scaffolding to help students complete the activity.
1. List all potential costs associated with starting and running the soap company. Consider both fixed costs (e.g., rent, salaries) and variable costs (e.g., raw materials, utilities).
2. Research local and federal tax laws applicable to small businesses.
3. Calculate estimated tax liabilities based on projected earnings.
4. Compile the findings into a detailed report on cost management strategies.

Final Product

What students will submit as the final product of the activityA detailed report on fixed and variable costs and tax liabilities.

Alignment

How this activity aligns with the learning objectives & standardsAligns with ENT-FIN-1b, as students identify fixed and variable costs and tax liabilities.
Activity 3

Finance Terms Treasure Hunt

Students hunt for key financial terms and definitions that are crucial for understanding financial reports and statements. This is an engaging way to build their financial vocabulary and comprehension, necessary for strategic decision-making.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Create a list of financial terms to find (e.g., revenue, profit margin, liabilities, equity).
2. Use financial textbooks, online glossaries, and business articles to define and contextualize each term.
3. Work with peers to quiz each other on the terms, discussing real-world applications.
4. Compile a "term dictionary" that includes definitions and examples.

Final Product

What students will submit as the final product of the activityA personalized "financial term dictionary" with examples.

Alignment

How this activity aligns with the learning objectives & standardsAligns with ENT-FIN-1c, enhancing comprehension of financial terminology.
Activity 4

Budget Mastermind Workshop

In this hands-on workshop, students learn to create a budget for the Eagle Lather Soap Company, including drafting an income statement, balance sheet, and cash flow statement. They explore each component's purpose in strategic financial planning.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Gather financial data and projections for the soap company.
2. Learn about and draft an income statement, reflecting projected revenues and expenses.
3. Prepare a balance sheet, showing assets, liabilities, and equity.
4. Develop a cash flow statement to track anticipated cash inflows and outflows.
5. Present and justify the budget's components to a mock board of directors.

Final Product

What students will submit as the final product of the activityA comprehensive business budget, including income statement, balance sheet, and cash flow statement.

Alignment

How this activity aligns with the learning objectives & standardsAligns with ENT-FIN-1d, as students create and explain a business budget with financial statements.
Activity 5

Algebraic Business Solutions Lab

Students apply Algebra concepts to solve financial challenges faced by the soap company. Through equations, inequalities, and matrices, they navigate real-world business scenarios.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Identify key areas where mathematical analysis is needed (e.g., cost analysis, breakeven point).
2. Construct and solve equations to address these concerns (e.g., break-even analysis).
3. Use matrices to organize and visualize financial data.
4. Interpret the solutions in the context of business strategy.

Final Product

What students will submit as the final product of the activityA portfolio of solved business scenarios using algebraic methods.

Alignment

How this activity aligns with the learning objectives & standardsAligns with ALG.I & ALG.II standards, applying algebra to business problem-solving.
Activity 6

Geometry in Business Strategy Game

This interactive activity involves using Geometry concepts to plan space efficiency and logistics for the soap company, such as arranging production floor layout or optimizing delivery routes.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Analyze the spatial needs of the soap company for production, storage, and distribution.
2. Apply geometric principles to design an efficient production floor plan.
3. Use geometric calculations to optimize delivery routes.
4. Present the strategic logistics plan to the class.

Final Product

What students will submit as the final product of the activityA strategic logistics plan using geometric insights.

Alignment

How this activity aligns with the learning objectives & standardsAligns with GEO.1-2, using Geometry for business logistics and planning.
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Rubric & Reflection

Portfolio Rubric

Grading criteria for assessing the overall project portfolio

Entrepreneurial Finance and Math Application Rubric

Category 1

Financial Understanding

Assesses the depth of understanding of financial concepts including capital sources, cost management, and financial terminology.
Criterion 1

Capital Source Evaluation

Evaluates the ability to analyze and compare different sources of capital for an entrepreneurial venture.

Exemplary
4 Points

Thoroughly researches and evaluates multiple sources of capital, providing a sophisticated comparison analysis with clear recommendations based on solid evidence.

Proficient
3 Points

Effectively compares at least two sources of capital, with appropriate analysis and supported recommendations.

Developing
2 Points

Provides a basic comparison of capital sources with some analysis; recommendations lack depth.

Beginning
1 Points

Incomplete or inaccurate understanding of capital sources; little to no analysis provided.

Criterion 2

Cost Management Analysis

Assesses the ability to identify and manage fixed and variable costs and understand tax liabilities.

Exemplary
4 Points

Displays comprehensive identification and categorization of costs with an insightful analysis of tax implications and management strategies.

Proficient
3 Points

Clearly identifies and categorizes costs with correct calculation of tax liabilities; analysis is adequate.

Developing
2 Points

Identifies costs with some errors; tax calculation is attempted but often incorrect.

Beginning
1 Points

Minimal identification of costs; lacks understanding of tax liabilities.

Criterion 3

Financial Terminology Application

Evaluates understanding and application of financial vocabulary in developing financial reports.

Exemplary
4 Points

Demonstrates mastery of financial terminology, integrating it seamlessly into reports with practical examples.

Proficient
3 Points

Strong understanding of terms, with appropriate usage in reports and some examples.

Developing
2 Points

Basic understanding and use of financial terminology; reports contain few examples.

Beginning
1 Points

Limited knowledge of financial terms; inaccurate or no application in reports.

Category 2

Mathematical Analysis

Assesses application of algebraic and geometric concepts to solve business-related problems.
Criterion 1

Algebraic Problem Solving

Measures the ability to apply algebraic methods to analyze and solve business problems.

Exemplary
4 Points

Expertly applies algebraic concepts to solve complex business scenarios, with precise and accurate results.

Proficient
3 Points

Consistently applies algebraic methods to solve business problems accurately.

Developing
2 Points

Applies algebraic concepts with partial success; solutions often lack accuracy.

Beginning
1 Points

Struggles to apply algebraic methods; solutions are frequently inaccurate.

Criterion 2

Geometric Analysis and Application

Evaluates the use of geometry in logistical planning and strategic business design.

Exemplary
4 Points

Utilizes geometric principles creatively and effectively in logistics and business planning, demonstrating innovative solutions.

Proficient
3 Points

Applies geometric concepts effectively in logistics and planning with satisfactory results.

Developing
2 Points

Basic application of geometric principles; solutions lack thoroughness or creative insight.

Beginning
1 Points

Limited or incorrect application of geometric concepts in business context.

Category 3

Communication and Presentation

Assesses the ability to communicate financial and mathematical analyses effectively through written and oral presentations.
Criterion 1

Clarity and Organization

Evaluates the structure and coherence of the final presentations and reports.

Exemplary
4 Points

Presents information in a highly organized, clear, and engaging manner, exhibiting strong coherence and flow.

Proficient
3 Points

Presentation and reports are well-organized and clear, with logical flow.

Developing
2 Points

Presentation lacks some organization and clarity; may be somewhat difficult to follow.

Beginning
1 Points

Disorganized presentation and reports lacking clarity, making comprehension difficult.

Criterion 2

Use of Evidence and Examples

Measures the inclusion and integration of supporting evidence in presentations.

Exemplary
4 Points

Incorporates extensive, relevant evidence and examples to strengthen arguments and analyses.

Proficient
3 Points

Uses relevant evidence and examples to support key points effectively.

Developing
2 Points

Incorporates some evidence and examples, though they may not fully support the arguments.

Beginning
1 Points

Little to no use of relevant evidence or examples; weak support for arguments.

Reflection Prompts

End-of-project reflection questions to get students to think about their learning
Question 1

Reflect on how understanding various sources of capital impacts an entrepreneur's ability to make informed decisions about business growth and sustainability. How will you apply what you've learned about capital sources in future entrepreneurial endeavors?

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Question 2

How confident are you now in identifying and managing fixed and variable costs within a business model?

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Question 3

Considering the financial terminology you learned, which terms do you find most critical in effective business communication and why?

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Question 4

Rate your ability to create and analyze business budgets, including income statements, balance sheets, and cash flow statements.

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Question 5

In what ways has applying algebraic concepts enhanced your problem-solving skills in business scenarios?

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Question 6

How important is the role of geometry in strategic business planning, and where could you see it being applied in real-world scenarios?

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