DENNIS HANNO AND NICOLE SMITH

WITH AMY MALINOWSKI AND STEPHEN CHISA

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DENNIS HANNO AND NICOLE SMITH
WITH AMY MALINOWSKI AND STEPHEN CHISA

Ξ^KEK>>'ͳ:h>zϮϬϭϯ
 Authors and Contributors
dŚŝƐǁŽƌŬŬŝƐĂĐŽůůĂďŽƌĂƟǀĞĞīŽƌƚƚŚĂƚďĞŶĞĮƩĞĚĨƌŽŵƚŚĞŝŶƉƵƚĂŶĚŐƵŝĚĂŶĐĞŽĨƐĞǀĞƌĂů
ŝŶĚŝǀŝĚƵĂůƐ͕ĂůůĚĞĚŝĐĂƚĞĚƚŽĚĞǀĞůŽƉŝŶŐƚŚĞŶĞdžƚŐĞŶĞƌĂƟŽŶŽĨĞŶƚƌĞƉƌĞŶĞƵƌŝĂůůĞĂĚĞƌƐ͘

ƵƚŚŽƌƐ
Dennis Hanno, Babson College
Nicole Smith, Babson College ’10

ĞƐŝŐŶĞƌƐĂŶĚ>ĞĂĚŽŶƚƌŝďƵƚŽƌƐ
Amy Malinowski, Babson College ’13
Stephen Chisa, Babson College ’13

ŽŶƚƌŝďƵƚŽƌƐ
Billy Bregianos, Ghana Project ’08
Greg Brown,'ŚĂŶĂWƌŽũĞĐƚ͛Ϭϴ͕͛Ϭϵ͛ϭϬ͛ϭϭ
Tarini Chopra,Ghana Project ’09
Christopher McVety, Ghana Project ’10
Sandra Popaja, Ghana Project ’09
Vanessa Theoharis, Ghana Project ’10
Dan Brown, Ghana Project ’09
Samantha Chipman, Ghana Project ’09
Amanda Gauthier, Ghana Project ’07
^ĂďĂEĞũĂƟĂŶ͕ Ghana Project ’07
Meg Rabinowitz,'ŚĂŶĂWƌŽũĞĐƚ͕͛Ϭϳ

ŽǀĞƌƌƟƐƚ
Kobina Nyarko
dĂŬŽƌĂĚŝ͕'ŚĂŶĂ
ǁǁǁ͘ĐƌŽƐƐŐĂůůĞƌLJŐŚĂŶĂ͘ĐŽŵ

4 | Introduction
 WƵƫŶŐzŽƵƌ/ĚĞĂƐŝŶƚŽĐƟŽŶ
ƌĞLJŽƵĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͍ŶĞŶƚƌĞƉƌĞŶĞƵƌŝƐƐŽŵĞŽŶĞǁŚŽĂĐƚƐŽŶĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽĐƌĞĂƚĞƐŽŵĞƚŚŝŶŐŽĨǀĂůƵĞ͘dŚĞŬĞLJǁŽƌĚŝŶƚŚŝƐ
ĚĞƐĐƌŝƉƟŽŶŝƐĂĐƚʹŶŽƚŚŝŶŐŝƐĂĐŚŝĞǀĞĚ͕ŶŽǀĂůƵĞŝƐĐƌĞĂƚĞĚƵŶůĞƐƐĂĐƟŽŶŝƐƚĂŬĞŶ͘dŚĂƚ͛ƐǁŚLJƚŚŝƐǁŽƌŬŬŝƐĂůůĂďŽƵƚƐŚŽǁŝŶŐLJŽƵ
ŚŽǁƚŽĐƌĞĂƚĞƐŽŵĞƚŚŝŶŐŽĨǀĂůƵĞďLJŵŽǀŝŶŐŝŶƚŽĂĐƟŽŶĂŶĚďLJŝŶƐƉŝƌŝŶŐLJŽƵƚŽďĞĐŽŵĞĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘

/ĨLJŽƵ͛ƌĞƌĞĂĚŝŶŐƚŚŝƐŝŶƚƌŽĚƵĐƟŽŶ͕LJŽƵŵŝŐŚƚĂůƌĞĂĚLJŚĂǀĞƚŚĞŶĞĐĞƐƐĂƌLJĮƌƐƚŝŶŐƌĞĚŝĞŶƚƚŽďĞŝŶŐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͗ĂŶŝĚĞĂƚŚĂƚLJŽƵ
ƚŚŝŶŬŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽĐƌĞĂƚĞǀĂůƵĞĨŽƌLJŽƵŽƌŽƚŚĞƌƐ͘/ĨLJŽƵ͛ƌĞŶŽƚƚŚĞƌĞLJĞƚ͕ƚŚŝƐǁŽƌŬŬǁŝůůŚĞůƉLJŽƵŝĚĞŶƟĨLJLJŽƵƌƉĂƐƐŝŽŶƐĂŶĚ
ŐƵŝĚĞLJŽƵŝŶĚĞǀĞůŽƉŝŶŐŝĚĞĂƐƚŚĂƚĂƌŝƐĞĨƌŽŵƚŚŝƐƉĂƐƐŝŽŶĂŶĚLJŽƵƌƐŬŝůůƐ͘

DŽǀŝŶŐĨƌŽŵĂŶŝĚĞĂƚŽĂĐƟŽŶŝƐŶŽƚĂůǁĂLJƐĂƐŝŵƉůĞƉƌŽĐĞƐƐ͘^ƚĂƌƟŶŐĂďƵƐŝŶĞƐƐŝƐŶŽƚƐŽŵĞƚŚŝŶŐƚŚĂƚŵĂŶLJƉĞŽƉůĞŬŶŽǁĂůŽƚĂďŽƵƚ͘
ŶĚĞǀĞŶŝĨLJŽƵĚŝĚŬŶŽǁĂůŽƚĂďŽƵƚďƵƐŝŶĞƐƐ͕ŝƚƐƟůůŝƐŶ͛ƚĞĂƐLJƚŽĐƌĞĂƚĞƐŽŵĞƚŚŝŶŐŶĞǁďĞĐĂƵƐĞĐŽŶĚŝƟŽŶƐĐŚĂŶŐĞĂŶĚƚŚĞƌĞĂƌĞ
ĂůǁĂLJƐŶĞǁĐŚĂůůĞŶŐĞƐƚŽďĞĐŽŶĨƌŽŶƚĞĚ͘/ĨƐƚĂƌƟŶŐĂďƵƐŝŶĞƐƐǁĂƐĞĂƐLJ͕ƚŚĞŶĞǀĞƌLJďŽĚLJǁŽƵůĚďĞƐƵĐĐĞƐƐĨƵůĂƚŝƚǁŝƚŚǀĞƌLJůŝƩůĞĞīŽƌƚ
ŽƌƉůĂŶŶŝŶŐ͘tĞŬŶŽǁƚŚĂƚĚŽĞƐŶ͛ƚŚĂƉƉĞŶ͘

dŚŝƐǁŽƌŬŬǁŝůůƐĞƌǀĞĂƐLJŽƵƌƌŽĂĚŵĂƉĨŽƌŵŽǀŝŶŐĨƌŽŵŝĚĞĂƚŽĂĐƟŽŶ͘/ƚŝƐĨƵůůŽĨŐƵŝĚĂŶĐĞĂŶĚƉƌĂĐƟĐĂůĞdžĞƌĐŝƐĞƐƚŚĂƚLJŽƵĐĂŶ
ƵƐĞƚŽŚĞůƉLJŽƵƉƵƌƐƵĞLJŽƵƌƉĂƐƐŝŽŶĂƐLJŽƵĐƌĞĂƚĞĂŶĞǁǀĞŶƚƵƌĞ͘dŚĞƉĂƚŚĨƌŽŵŝĚĞĂƚŽĂĐƟŽŶĐĂŶďĞĚŝīĞƌĞŶƚĨŽƌĞǀĞƌLJŽŶĞ͕ĂŶĚƚŚĞ
ǁŽƌŬŬŝƐĚĞƐŝŐŶĞĚƚŽŵĂŬĞLJŽƵƌĞĂůŝnjĞƚŚĂƚŶŽŽŶĞĐĂŶŐŝǀĞLJŽƵĂƐƚĞƉͲďLJͲƐƚĞƉŐƵŝĚĞƚŽƐƵĐĐĞƐƐ͘zŽƵŵƵƐƚďƵŝůĚƐƵĐĐĞƐƐLJŽƵƌƐĞůĨ͘
tŚŝůĞLJŽƵĂƌĞůŝŬĞůLJƚŽĞŶĐŽƵŶƚĞƌŵĂŶLJŽďƐƚĂĐůĞƐĂůŽŶŐƚŚĞƌŽĂĚ͕ŝƚǁŝůůďĞƚŽƚĂůůLJƵƉƚŽLJŽƵƚŽĮŐƵƌĞŽƵƚŚŽǁƚŽĐŽŶĨƌŽŶƚƚŚĞŵĂŶĚƚŽ
ůĞĂƌŶĨƌŽŵƚŚĞŵ͘dŚŝƐǁŽƌŬŬǁŝůůŽīĞƌLJŽƵƉƌĂĐƟĐĂůƟƉƐĂŶĚƐƵƉƉŽƌƚƚŽŵĞĞƚƚŚĞĐŚĂůůĞŶŐĞƐĂůůĂůŽŶŐLJŽƵƌũŽƵƌŶĞLJ͘

zŽƵƐŚŽƵůĚƚĂŬĞLJŽƵƌƟŵĞĂŶĚĐĂƌĞĨƵůůLJǁŽƌŬƚŚƌŽƵŐŚĂůůƚŚĞůĞƐƐŽŶƐŝŶƚŚŝƐŬŝŶƚŚĞŽƌĚĞƌƚŚĞLJĂƌĞƉƌĞƐĞŶƚĞĚ͘ŽĂůůŽĨƚŚĞŵĂŶLJ
ĞdžĞƌĐŝƐĞƐĂŶĚƚŚŝŶŬĂďŽƵƚƚŚĞŐƵŝĚĂŶĐĞƉƌŽǀŝĚĞĚŝŶĞĂĐŚůĞƐƐŽŶ͘ǀĞŶŝĨLJŽƵĚŽŶ͛ƚƐĞĞƚŚĞǀĂůƵĞŝŶĂƉĂƌƟĐƵůĂƌĞdžĞƌĐŝƐĞƌŝŐŚƚĂǁĂLJ͕/
ĐĂŶĂƐƐƵƌĞLJŽƵƚŚĂƚŝƚǁŝůůďĞŽĨǀĂůƵĞƚŽLJŽƵƐŽŵĞƟŵĞŝŶƚŚĞĨƵƚƵƌĞ͘ƚƚŚĞĞŶĚŽĨĞǀĞƌLJĐŚĂƉƚĞƌƚŚĞƌĞŝƐƐƉĂĐĞĨŽƌŐƵŝĚĞĚƌĞŇĞĐƟŽŶ͘
dĂŬĞƚŚĞƟŵĞƚŽĚŽƚŚŝƐ͕ƚŽŽ͕ƐŝŶĐĞƌĞŇĞĐƟŽŶŝƐĂŶŝŵƉŽƌƚĂŶƚƉĂƌƚŽĨĂŶLJůĞĂƌŶŝŶŐƉƌŽĐĞƐƐ͘dŚĞĞŶĚͲŽĨͲƚŚĞĐŚĂƉƚĞƌƌĞŇĞĐƟŽŶƐǁŝůůĂůƐŽ
ŐƵŝĚĞLJŽƵŝŶďƵŝůĚŝŶŐĂƌĞĂůďƵƐŝŶĞƐƐƉůĂŶŝŶƉƉĞŶĚŝdž/͘dŚĞďƵƐŝŶĞƐƐƉůĂŶǁŝůůƉƌŽǀŝĚĞLJŽƵǁŝƚŚĂƉůĂŶŶŝŶŐĚŽĐƵŵĞŶƚĨŽƌLJŽƵƌƐĞůĨĂŶĚ
ĨŽƌŽƚŚĞƌƐǁŚŽLJŽƵǁĂŶƚƚŽŐĞƚŝŶǀŽůǀĞĚŝŶLJŽƵƌďƵƐŝŶĞƐƐ͘zŽƵƌďƵƐŝŶĞƐƐƉůĂŶŝƐĂǀĂůƵĂďůĞƚŽŽůƚŚĂƚLJŽƵǁŝůůƉƌŽďĂďůLJƌĞǀŝƐŝƚŵĂŶLJƟŵĞƐ
ĂƐLJŽƵƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐĂŶĚĞǀĞŶĂŌĞƌLJŽƵƌďƵƐŝŶĞƐƐŝƐƵƉĂŶĚƌƵŶŶŝŶŐ͘

dŚĞ ŝĚĞĂƐ ŝŶ ƚŚŝƐ ǁŽƌŬŬ ŚĂǀĞ ďĞĞŶ ƐŚĂƉĞĚ ďLJ ƚŚĞ ƚŚŽƵƐĂŶĚƐ ŽĨ ƉŽƚĞŶƟĂů LJŽƵŶŐ ĞŶƚƌĞƉƌĞŶĞƵƌƐ / ŚĂǀĞ ǁŽƌŬĞĚ ǁŝƚŚ ĚƵƌŝŶŐ ŵLJ
ĐĂƌĞĞƌĂƐĂŶĞĚƵĐĂƚŽƌ͘ƐWƌĞƐŝĚĞŶƚŽĨƚŚĞELJĂŶƐĂWƌŽũĞĐƚ͕ĂŶE'KĚĞĚŝĐĂƚĞĚƚŽƉƌŽŵŽƟŶŐĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŝŶ'ŚĂŶĂ͕/ŚĂǀĞŚĂĚ
ƚŚĞƉůĞĂƐƵƌĞŽĨǁŽƌŬŝŶŐŝŶƚŚĂƚĐŽƵŶƚƌLJǁŝƚŚůŝƚĞƌĂůůLJƚŚŽƵƐĂŶĚƐŽĨŚŝŐŚƐĐŚŽŽůƐƚƵĚĞŶƚƐ͕ŵĂŶLJǁŚŽĂƌĞĂƐƉŝƌŝŶŐĞŶƚƌĞƉƌĞŶĞƵƌƐ͘Ɛ
džĞĐƵƟǀĞŝƌĞĐƚŽƌŽĨƚŚĞĂďƐŽŶͲZǁĂŶĚĂŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĞŶƚĞƌ/ŚĂǀĞďĞŶĞĮƚĞĚĨƌŽŵƚŚĞƉĞƌƐƉĞĐƟǀĞƐƐŚĂƌĞĚǁŝƚŚŵĞďLJLJŽƵŶŐ
ĞŶƚƌĞƉƌĞŶĞƵƌƐŝŶƚŚĂƚĐŽƵŶƚƌLJ͘ŶĚĂƐĞĂŶĂƚƚŚĞůĞĂĚŝŶŐĂĐĂĚĞŵŝĐŝŶƐƟƚƵƟŽŶŝŶƚŚĞǁŽƌůĚĨŽƌĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ͕ĂďƐŽŶŽůůĞŐĞ͕/
ŚĂǀĞǁŽƌŬĞĚǁŝƚŚĞŶƚƌĞƉƌĞŶĞƵƌƐĨƌŽŵĂůůŽǀĞƌƚŚĞǁŽƌůĚ͘

dŚĞƌĞŚĂǀĞďĞĞŶŵĂŶLJĐŽŶƚƌŝďƵƚŽƌƐƚŽƚŚŝƐƉƌŽũĞĐƚĂŶĚƚŚĞLJĂƌĞĂĐŬŶŽǁůĞĚŐĞĚĞůƐĞǁŚĞƌĞŝŶƚŚĞǁŽƌŬŬ͘ǀĞƌLJŽŶĞŽĨƚŚĞĐŽŶƚƌŝďƵͲ
ƚŽƌƐƐŚĂƌĞƐŵLJƉĂƐƐŝŽŶĨŽƌĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĂŶĚďĞůŝĞǀĞƐ͕ůŝŬĞŵĞ͕ƚŚĂƚŝƚŚĂƐƚŚĞĂďŝůŝƚLJƚŽƚƌĂŶƐĨŽƌŵŝŶĚŝǀŝĚƵĂůƐ͕ĐŽŵŵƵŶŝƟĞƐĂŶĚ
ĞǀĞŶǁŚŽůĞĐŽƵŶƚƌŝĞƐ͘dŚŝƐǁŽƌŬŬŝƐŽƵƌĐŽŶƚƌŝďƵƟŽŶƚŽĐƌĞĂƟŶŐĂŶĞǁŐĞŶĞƌĂƟŽŶŽĨĞŶƚƌĞƉƌĞŶĞƵƌƐǁŚŽǁŝůůŵĂŬĞƚŚĞǁŽƌůĚĂ
ďĞƩĞƌƉůĂĐĞ͘EŽǁŝƚ͛ƐƵƉƚŽLJŽƵʹďĞŐŝŶLJŽƵƌũŽƵƌŶĞLJŽĨŵŽǀŝŶŐ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶďLJĚŝǀŝŶŐŝŶƚŽƚŚŝƐǁŽƌŬŬƌŝŐŚƚĂǁĂLJ͘/͛ŵƐƵƌĞ
LJŽƵǁŝůůĮŶĚƚŚĞũŽƵƌŶĞLJƌĞǁĂƌĚŝŶŐĂŶĚĞŶũŽLJĂďůĞ͊

Dennis Hanno

WƌŽǀŽƐƚĂŶĚsŝĐĞWƌĞƐŝĚĞŶƚ͕ĂďƐŽŶŽůůĞŐĞ
džĞĐƵƟǀĞŝƌĞĐƚŽƌ͕ĂďƐŽŶͲZǁĂŶĚĂŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĞŶƚĞƌ

Introduction | 5
 Featuring Local Entrepreneurs
&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶŚĂƐďĞĞŶƵƐĞĚŝŶŵĂŶLJĚŝīĞƌĞŶƚĐŽƵŶƚƌŝĞƐĂŶĚĐŽŶƟŶƵĞƐƚŽĞdžƉĂŶĚĞǀĞƌLJLJĞĂƌ͊
ĞůŽǁLJŽƵĐĂŶƐĞĞƚŚĞĐŽǀĞƌĂƌƚĂŶĚĂƌƟƐƚƐĨƌŽŵĐŽƵŶƚƌŝĞƐǁŚĞƌĞƚŚĞĐĂĚĞŵLJŚĂƐďĞĞŶƚŽƐŽĨĂƌ͘

GHANA RWANDA
Kobina Nyarko /ŶŶŽĐĞŶƚEŬƵƌƵŶnjŝnjĂ
dĂŬŽƌĂĚŝ͕'ŚĂŶĂ <ŝŐĂůŝ͕ZǁĂŶĚĂ

dEE/ UGANDA
Peter Ray Mwasha Daudi Karungi
DŝŬĂǁĂŚĂŶŝ͕dĂŶnjĂŶŝĂ <ĂŵƉĂůĂ͕hŐĂŶĚĂ

6 | Introduction
Content Overview
Part I: Thinking
 ŚĂƉƚĞƌϭ ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ13
ŚĂƉƚĞƌϮ <ŶŽǁŝŶŐDLJƐĞůĨ 21
 ŚĂƉƚĞƌϯ &ŝŶĚŝŶŐDLJWĂƐƐŝŽŶƐ33
 ŚĂƉƚĞƌϰ ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ43
 ŚĂƉƚĞƌϱ <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ55
 ŚĂƉƚĞƌϲ 'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ 75

Part II: Planning

 ŚĂƉƚĞƌϳ ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ105
 ŚĂƉƚĞƌϴ ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ121
 ŚĂƉƚĞƌϵ hƐŝŶŐĐĐŽƵŶƟŶŐĂƐĂdŽŽů143
 ŚĂƉƚĞƌϭϬ &ƵŶĚŝŶŐDLJƵƐŝŶĞƐƐ 155

Part III: Doing

 ŚĂƉƚĞƌϭϭ ^ŚĂƌŝŶŐDLJ/ĚĞĂ169
 ŚĂƉƚĞƌϭϮ dĂŬŝŶŐĐƟŽŶΘKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ181
 ŚĂƉƚĞƌϭϯ 'ƌŽǁŝŶŐDLJƵƐŝŶĞƐƐ191
ŚĂƉƚĞƌϭϰ ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŽĨůů<ŝŶĚƐ199

ƉƉĞŶĚŝĐĞƐ
 ƉƉĞŶĚŝdž/ DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ207
 ƉƉĞŶĚŝdž// DLJƵƐŝŶĞƐƐWůĂŶ223
 ƉƉĞŶĚŝdž/// DLJEŽƚĞƐ 239
 ƉƉĞŶĚŝdž/s 'ůŽƐƐĂƌLJ247
 ƉƉĞŶĚŝdžs ŝďůŝŽŐƌĂƉŚLJΘZĞĨĞƌĞŶĐĞƐ 251
 ƉƉĞŶĚŝdžs/ ^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ253

Introduction | 7
 Table of Contents
Part I: Thinking   džĞƌĐŝƐĞϱ͘ϳZĞĮŶŝŶŐƌĞĂƐŽĨKƉƉŽƌƚƵŶŝƚLJ
 >ĞƐƐŽŶϱ͘ϰŽŵƉůĞƟŶŐƚŚĞƉŝĐƚƵƌĞ
  džĞƌĐŝƐĞϱ͘ϴ'ŽŝŶŐĚĞĞƉĞƌ
ŚĂƉƚĞƌϭ͗ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ13  ZĞŇĞĐƟŽŶ͗DLJŽŵŵƵŶŝƚLJ
 >ĞƐƐŽŶϭ͘ϭtŚĂƚŝƐŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ͍
 >ĞƐƐŽŶϭ͘ϮĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ
 >ĞƐƐŽŶϭ͘ϯŽŵŵƵŶŝĐĂƟŶŐ ŚĂƉƚĞƌϲ͗'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ 75
 >ĞƐƐŽŶϭ͘ϰDŽǀŝŶŐĨƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ  >ĞƐƐŽŶϲ͘ϭzŽƵƌ/ŶƚĞƌĞƐƚƐ͕ZĞůĂƟŽŶƐŚŝƉƐ͕ĂŶĚŶǀŝƌŽŶŵĞŶƚ
  džĞƌĐŝƐĞϲ͘ϭDĂŬŝŶŐŽŶŶĞĐƟŽŶƐ
 >ĞƐƐŽŶϲ͘ϮƌĞĂƟŶŐ/ĚĞĂƐ
ŚĂƉƚĞƌϮ͗<ŶŽǁŝŶŐDLJƐĞůĨ21   džĞƌĐŝƐĞϲ͘ϮƌĂŝŶƐƚŽƌŵŝŶŐ
 >ĞƐƐŽŶϮ͘ϭDLJsĂůƵĞƐ   džĞƌĐŝƐĞϲ͘ϯtŽƌĚŽŶŶĞĐƟŽŶƐ
  džĞƌĐŝƐĞϮ͘ϭDLJŽƌĞsĂůƵĞƐ   džĞƌĐŝƐĞϲ͘ϰ/ĚĞĂDĂƉƉŝŶŐ
  džĞƌĐŝƐĞϮ͘ϮDLJDŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ   džĞƌĐŝƐĞϲ͘ϱDŽǀŝŶŐ&ŽƌǁĂƌĚ
 >ĞƐƐŽŶϮ͘ϮDLJ>ĞĂĚĞƌƐŚŝƉ^ƚLJůĞ  >ĞƐƐŽŶϲ͘ϯĞǀĞůŽƉŝŶŐ/ĚĞĂƐ
  džĞƌĐŝƐĞϮ͘ϯtƌŝƚĞLJŽƵƌŶĂŵĞ   džĞƌĐŝƐĞϲ͘ϲĐƚŝƚKƵƚ
  džĞƌĐŝƐĞϮ͘ϰ,ŽǁĚŽLJŽƵƌĞĂĐƚ͍   džĞƌĐŝƐĞϲ͘ϳŽŝŶŐ/ŶƚĞƌǀŝĞǁƐ
  džĞƌĐŝƐĞϮ͘ϱ^ƚƌĞŶŐƚŚƐĂŶĚtĞĂŬŶĞƐƐĞƐ   džĞƌĐŝƐĞϲ͘ϴĞǀĞůŽƉzŽƵƌ/ĚĞĂƐ
 >ĞƐƐŽŶϮ͘ϯtŚĂƚŝƐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͍  >ĞƐƐŽŶϲ͘ϰ/ĚĞĂ&ĞĂƐŝďŝůŝƚLJ
  džĞƌĐŝƐĞϮ͘ϲƌĂǁĂŶŶƚƌĞƉƌĞŶĞƵƌ   džĞƌĐŝƐĞϲ͘ϵ/ĚĞĂ&ĞĂƐŝďŝůŝƚLJ
  džĞƌĐŝƐĞϮ͘ϳĞĮŶĞĂŶŶƚƌĞƉƌĞŶĞƵƌ  >ĞƐƐŽŶϲ͘ϱZĞĮŶĞzŽƵƌ/ĚĞĂ
 ZĞŇĞĐƟŽŶ͗<ŶŽǁŝŶŐDLJƐĞůĨ   džĞƌĐŝƐĞϲ͘ϭϬhŶĚĞƌƐƚĂŶĚŝŶŐtŚĞƌĞzŽƵ&ŝƚ/Ŷ
  džĞƌĐŝƐĞϲ͘ϭϭzŽƵƌ^tKd
  džĞƌĐŝƐĞϲ͘ϭϮzŽƵƌWƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ
ŚĂƉƚĞƌϯ͗&ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ 33
 ZĞŇĞĐƟŽŶ͗'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ
 >ĞƐƐŽŶϯ͘ϭtŚĂƚŝƐƉĂƐƐŝŽŶ͍
  džĞƌĐŝƐĞϯ͘ϭWĂƐƐŝŽŶŝŶzŽƵƌŽŵŵƵŶŝƚLJ
 >ĞƐƐŽŶϯ͘ϮWĂƐƐŝŽŶĐĂŶďĞŝĚĞŶƟĮĞĚ
  džĞƌĐŝƐĞϯ͘ϮǁĞĞŬŝŶƚŚĞůŝĨĞŽĨŵĞ
  džĞƌĐŝƐĞϯ͘ϯhƐŝŶŐŵLJƟŵĞǁŝƐĞůLJ Part II: Planning
 >ĞƐƐŽŶϯ͘ϯ&ŝŶĚŝŶŐŵLJƉĂƐƐŝŽŶ
  džĞƌĐŝƐĞϯ͘ϰƐŬŵLJƐĞůĨ
  džĞƌĐŝƐĞϯ͘ϱŽŵŵŽŶƚŚĞŵĞƐ ŚĂƉƚĞƌϳ͗ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ105
 >ĞƐƐŽŶϯ͘ϰWĂƐƐŝŽŶŝŶƉƌĂĐƟĐĞ  >ĞƐƐŽŶϳ͘ϭWƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ
  džĞƌĐŝƐĞϯ͘ϲĐƟŶŐŽŶŵLJƉĂƐƐŝŽŶ   džĞƌĐŝƐĞϳ͘ϭDŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ
 ZĞŇĞĐƟŽŶ͗DLJWĂƐƐŝŽŶ  >ĞƐƐŽŶϳ͘Ϯ͗WĞŽƉůĞ
  džĞƌĐŝƐĞϳ͘ϮtŚŽƌĞdŚĞLJ͍
  džĞƌĐŝƐĞϳ͘ϯ,ŽǁĚŽƚŚĞLJƵƐĞƚŚĞƉƌŽĚƵĐƚ͍
ŚĂƉƚĞƌϰ͗ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ 43  >ĞƐƐŽŶϳ͘ϯWƌŽŵŽƟŽŶ
 >ĞƐƐŽŶϰ͘ϭ/ĚĞŶƟĨLJŝŶŐDLJEĞƚǁŽƌŬ   džĞƌĐŝƐĞϳ͘ϰƌĂŶĚŝŶŐ
  džĞƌĐŝƐĞϰ͘ϭ͘DLJEĞƚǁŽƌŬdƌĞĞ   džĞƌĐŝƐĞϳ͘ϱĞǀĞůŽƉŝŶŐzŽƵƌƌĂŶĚ
 >ĞƐƐŽŶϰ͘ϮhƐŝŶŐDLJEĞƚǁŽƌŬ   džĞƌĐŝƐĞϳ͘ϲƌŽĐŚƵƌĞƐΘ&ůŝĞƌƐ
 >ĞƐƐŽŶϰ͘ϯdĂůŬŝŶŐƚŽDLJEĞƚǁŽƌŬ   džĞƌĐŝƐĞϳ͘ϳŽŵŵƵŶŝĐĂƟŶŐzŽƵƌƌĂŶĚ
  džĞƌĐŝƐĞϰ͘ϮzŽƵƌWĞƌƐŽŶĂůWŝƚĐŚ   džĞƌĐŝƐĞϳ͘ϴ&ƌĞĞtĂLJƐƚŽWƌŽŵŽƚĞ
  džĞƌĐŝƐĞϰ͘ϯƵƐƚŽŵWŝƚĐŚ   džĞƌĐŝƐĞϳ͘ϵ>ŽĐĂůĚǀĞƌƟƐŝŶŐ
 >ĞƐƐŽŶϰ͘ϰdžƉĂŶĚŝŶŐDLJEĞƚǁŽƌŬ   džĞƌĐŝƐĞϳ͘ϭϬzŽƵƌWƌŽŵŽƟŽŶ^ƚƌĂƚĞŐLJ
  džĞƌĐŝƐĞϰ͘ϰŽŶŶĞĐƟŽŶƐ  >ĞƐƐŽŶϳ͘ϰWůĂĐĞ
 >ĞƐƐŽŶϰ͘ϱzŽƵƌWĞƌƐŽŶĂůƌĂŶĚ   džĞƌĐŝƐĞϳ͘ϭϭtŚĞƌĞƚŽ^Ğůů͍
  džĞƌĐŝƐĞϰ͘ϱzŽƵƌWĞƌƐŽŶĂůƌĂŶĚ  >ĞƐƐŽŶϳ͘ϱWƌŝĐĞ
  džĞƌĐŝƐĞϰ͘ϲ^ŽĐŝĂůDĞĚŝĂ   džĞƌĐŝƐĞϳ͘ϭϮƚtŚĂƚWƌŝĐĞ͍
 ZĞŇĞĐƟŽŶ͗DLJEĞƚǁŽƌŬ  ZĞŇĞĐƟŽŶ͗DĂƌŬĞƟŶŐzŽƵƌƵƐŝŶĞƐƐ

ŚĂƉƚĞƌϱ͗<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ 55 ŚĂƉƚĞƌϴ͗ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ121
 >ĞƐƐŽŶϱ͘ϭ<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ  >ĞƐƐŽŶϴ͘ϭDĂƉŽĨWƌŽĐĞƐƐ
  džĞƌĐŝƐĞϱ͘ϭdĞƐƚLJŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐ   džĞƌĐŝƐĞϴ͘ϭzŽƵƌDĂƉ
  džĞƌĐŝƐĞϱ͘ϮdŚŝŶŬŽĨĞdžĂŵƉůĞƐ   džĞƌĐŝƐĞϴ͘ϮtĂŶƚƐǀƐ͘EĞĞĚƐ
 >ĞƐƐŽŶϱ͘ϮtŚĂƚĚŽ/ŬŶŽǁ͍   džĞƌĐŝƐĞϴ͘ϯŽŵƉĂƌŝŶŐ^ƵƉƉůŝĞƌƐ
  džĞƌĐŝƐĞϱ͘ϯtŚĂƚ/ŬŶŽǁ  >ĞƐƐŽŶϴ͘Ϯ^ƵƉƉůLJŚĂŝŶ
 >ĞƐƐŽŶϱ͘ϯtŚĂƚĚŽŶ͛ƚ/ŬŶŽǁ͍   džĞƌĐŝƐĞϴ͘ϰzŽƵƌ^ƵƉƉůLJŚĂŝŶ
  džĞƌĐŝƐĞϱ͘ϰDLJĂƐƐƵŵƉƟŽŶƐ  >ĞƐƐŽŶϴ͘ϯdĞĂŵĂŶĚdĂůĞŶƚ
  džĞƌĐŝƐĞϱ͘ϱ'ĂƚŚŝŶŐ/ŶĨŽƌŵĂƟŽŶ   džĞƌĐŝƐĞϴ͘ϱzŽƵƌdĞĂŵ
  džĞƌĐŝƐĞϱ͘ϲ'ƌŽƵƉŝŶŐŝŶĨŽƌŵĂƟŽŶ

8 | Introduction
 >ĞƐƐŽŶϴ͘ϰĞǀĞůŽƉŝŶŐLJŽƵƌdĞĂŵ  >ĞƐƐŽŶϭϯ͘ϰŝǀĞƌƐŝĨLJ
  džĞƌĐŝƐĞϴ͘ϲŽƌĞŽŵŵŝƚŵĞŶƚƐ   džĞƌĐŝƐĞϭϯ͘ϯŽŵƉůŝŵĞŶƚĂƌLJWƌŽĚƵĐƚƐ
ZĞŇĞĐƟŽŶ͗KƉĞƌĂƟŶŐLJŽƵƌƵƐŝŶĞƐƐ  ZĞŇĞĐƟŽŶ͗'ƌŽǁƚŚ

ŚĂƉƚĞƌϵ͗hƐŝŶŐĐĐŽƵŶƟŶŐĂƐĂdŽŽů143 ŚĂƉƚĞƌϭϰ͗ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŽĨůů<ŝŶĚƐ199
>ĞƐƐŽŶϵ͘ϭtŚLJŝƐĂĐĐŽƵŶƟŶŐŝŵƉŽƌƚĂŶƚ͍  >ĞƐƐŽŶϭϰ͘ϭzŽƵĂƌĞĂŶĞŶƚƌĞƉƌĞŶĞƵƌ
 >ĞƐƐŽŶϵ͘ϮtŚĂƚŝƐĂĐĐŽƵŶƟŶŐĂďŽƵƚ͍  >ĞƐƐŽŶϭϰ͘ϮWƌĂĐƟĐŝŶŐĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ
>ĞƐƐŽŶϵ͘ϯdŚĞŵĞĐŚĂŶŝĐƐŽĨĂĐĐŽƵŶƟŶŐ   džĞƌĐŝƐĞϭϰ͘ϭDLJŐŽĂůƐĨŽƌĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ
  džĞƌĐŝƐĞϵ͘ϭ͗hŶĚĞƌƐƚĂŶĚŝŶŐŵLJƚƌĂŶƐĂĐƟŽŶƐ  >ĞƐƐŽŶϭϰ͘ϯŶƚƌĞƉƌĞŶĞƵƌŝĂůůĞĂĚĞƌƐŚŝƉ
  džĞƌĐŝƐĞϵ͘Ϯ͗ĂƐŚĂŶĚĐĂƐŚŇŽǁƐ  ZĞŇĞĐƟŽŶ͗ŶƚƌĞƉƌĞŶĞƵƌŝĂůůĞĂĚĞƌƐŚŝƉ
 >ĞƐƐŽŶϵ͘ϰ>ŽŽŬŝŶŐƚŽƚŚĞĨƵƚƵƌĞ
  džĞƌĐŝƐĞϵ͘ϯ͗WƌĞƉĂƌŝŶŐĂƐĐŚĞĚƵůĞŽĨƐƚĂƌƚͲƵƉĐŽƐƚƐ
 ZĞŇĞĐƟŽŶ͗ŽƐƚƐĂŶĚZĞĐŽƌĚ<ĞĞƉŝŶŐ
ƉƉĞŶĚŝĐĞƐ
ŚĂƉƚĞƌϭϬ͗&ƵŶĚŝŶŐzŽƵƌƵƐŝŶĞƐƐ155 ƉƉĞŶĚŝdž/ DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ207
 >ĞƐƐŽŶϭϬ͘ϭEŽŶͲDŽŶĞƚĂƌLJ&ƵŶĚŝŶŐ
  džĞƌĐŝƐĞϭϬ͘ϭĂƌƚĞƌŝŶŐdžĂŵƉůĞƐ ƉƉĞŶĚŝdž// DLJƵƐŝŶĞƐƐWůĂŶ223
 >ĞƐƐŽŶϭϬ͘Ϯ>ŽĂŶƐΘ/ŶƚĞƌĞƐƚ ƉƉĞŶĚŝdž/// DLJEŽƚĞƐ239
  džĞƌĐŝƐĞϭϬ͘ϮĂůĐƵůĂƟŶŐ^ŝŵƉůĞ/ŶƚĞƌĞƐƚ
  džĞƌĐŝƐĞϭϬ͘ϯĂůĐƵůĂƟŶŐŽŵƉŽƵŶĚ/ŶƚĞƌĞƐƚ ƉƉĞŶĚŝdž/s 'ůŽƐƐĂƌLJ247
 >ĞƐƐŽŶϭϬ͘ϯƋƵŝƚLJ&ŝŶĂŶĐŝŶŐ ƉƉĞŶĚŝdžs ŝďůŝŽŐƌĂƉŚLJΘZĞĨĞƌĞŶĐĞƐ251
  džĞƌĐŝƐĞϭϬ͘ϰƋƵŝƚLJ&ŝŶĂŶĐŝŶŐ
 >ĞƐƐŽŶϭϬ͘ϰŽƐƚŽĨĂƉŝƚĂů ƉƉĞŶĚŝdžs/ džĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ253
  džĞƌĐŝƐĞϭϬ͘ϱŽŵƉĂƌŝŶŐ&ƵŶĚŝŶŐKƉƟŽŶƐ
  džĞƌĐŝƐĞϭϬ͘ϲZĞǀŝƐŝƟŶŐEĞĞĚƐǀƐ͘tĂŶƚƐ
 >ĞƐƐŽŶϭϬ͘ϱ&ƵŶĚŝŶŐLJŽƵďƵƐŝŶĞƐƐ
  džĞƌĐŝƐĞϭϬ͘ϳĚǀŝĐĞĨƌŽŵdžƉĞƌƚƐ
 ZĞŇĞĐƟŽŶ͗&ƵŶĚŝŶŐLJŽƵƌƵƐŝŶĞƐƐ

Part III: Doing

ŚĂƉƚĞƌϭϭ͗^ŚĂƌŝŶŐzŽƵƌƵƐŝŶĞƐƐ169
 >ĞƐƐŽŶϭϭ͘ϭZŽĐŬĞƚWŝƚĐŚĞƐ
  džĞƌĐŝƐĞϭϭ͘ϭzŽƵƌKƵƚůŝŶĞ
 >ĞƐƐŽŶϭϭ͘ϮƌĂŌŝŶŐLJŽƵƌZŽĐŬĞƚWŝƚĐŚ
  džĞƌĐŝƐĞϭϭ͘ϮĚũƵƐƟŶŐLJŽƵƌZŽĐŬĞƚWŝƚĐŚ
  džĞƌĐŝƐĞϭϭ͘ϯƌĂŌŝŶŐLJŽƵƌZŽĐŬĞƚWŝƚĐŚ
  džĞƌĐŝƐĞϭϭ͘ϰZŽĐŬĞƚWŝƚĐŚ&ĞĞĚďĂĐŬ
  džĞƌĐŝƐĞϭϭ͘ϱĚŝƫŶŐLJŽƵƌZŽĐŬĞƚWŝƚĐŚ
 >ĞƐƐŽŶϭϭ͘ϯDĂŬŝŶŐzŽƵƌZŽĐŬĞƚWŝƚĐŚ
 ZĞŇĞĐƟŽŶ͗^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ

ŚĂƉƚĞƌϭϮ͗dĂŬŝŶŐĐƟŽŶ 181
 >ĞƐƐŽŶϭϮ͘ϭĞǀĞůŽƉĂ'ŽĂůƐdŝŵĞůŝŶĞ
  džĞƌĐŝƐĞϭϮ͘ϭĞǀĞůŽƉzŽƵƌ'ŽĂůƐdŝŵĞůŝŶĞ
 >ĞƐƐŽŶϭϮ͘ϮWůĂŶŶŝŶŐĨŽƌKďƐƚĂĐůĞƐ
  džĞƌĐŝƐĞϭϮ͘ϮzŽƵƌKďƐƚĂĐůĞƐ
 >ĞƐƐŽŶϭϮ͘ϯKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ
  džĞƌĐŝƐĞϭϮ͘ϯƵŝůĚĂ^ƵƉƉŽƌƚEĞƚǁŽƌŬ
  džĞƌĐŝƐĞϭϮ͘ϰWŝĐŬDĞhƉ͊
 >ĞƐƐŽŶϭϮ͘ϰŽŵŵŝƚƚŽzŽƵƌ'ŽĂůƐ
  džĞƌĐŝƐĞϭϮ͘ϱŽŵŵŝƚƚŽzŽƵƌƐĞůĨ
 ZĞŇĞĐƟŽŶ͗dĂŬŝŶŐĐƟŽŶ

ŚĂƉƚĞƌϭϯ͗'ƌŽǁŝŶŐzŽƵƌƵƐŝŶĞƐƐ191
 >ĞƐƐŽŶϭϯ͘ϭƌĞĂƚĞĂWƌŽĐĞƐƐ 
  džĞƌĐŝƐĞϭϯ͘ϭŶĂůLJnjŝŶŐzŽƵƌƵƐŝŶĞƐƐ
  džĞƌĐŝƐĞϭϯ͘ϮzŽƵƌdĞĂŵ
 >ĞƐƐŽŶϭϯ͘ϯĚĂƉƚ

Introduction | 9
^ĂŵƵĞůĂŶĚ'ƌĂĐĞĂƌĞŚŝŐŚƐĐŚŽŽůƐƚƵĚĞŶƚƐůŝŬĞLJŽƵ͊dŚƌŽƵŐŚŽƵƚƚŚĞŬ͕^ĂŵƵĞůĂŶĚ'ƌĂĐĞǁŝůůƐŚĂƌĞƐŽŵĞƟƉƐƚŚĂƚƚŚĞLJƵƐĞĚƚŽŚĞůƉLJŽƵǁŝƚŚ
LJŽƵƌůĞƐƐŽŶƐ͘dŚĞLJ͛ůůĂůƐŽƐŚĂƌĞĞdžĂŵƉůĞƐĨƌŽŵƚŚĞŝƌůŝǀĞƐĂŶĚĂƚŚĞŝƌĨƌŝĞŶĚƐ͛ŶĞǁůLJͲĨŽƌŵĞĚďƵƐŝŶĞƐƐ͕DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚ͕ƚŚĂƚLJŽƵ͛ůů
ƵƐĞƚŽůĞĂƌŶĐŽŶĐĞƉƚƐďĞĨŽƌĞLJŽƵĂƉƉůLJƚŚĞŵƚŽLJŽƵƌŽǁŶŝĚĞĂŽƌďƵƐŝŶĞƐƐ͘>ŽŽŬĨŽƌ'ƌĂĐĞŽƌ^ĂŵƵĞůŝŶƚŚĞŵĂƌŐŝŶƐŽĨLJŽƵƌŬƐĂŶĚďĞƐƵƌĞƚŽ
ƌĞĂĚƚŚĞŝƌƚŚŽƵŐŚƚƐƚŽĞŶŚĂŶĐĞLJŽƵƌůĞƐƐŽŶ͊

Samuel
Age: 15 years old
Grace
Age: 16 years old
'ƌĂĚĞ͗ 10 'ƌĂĚĞ͗ 11

^ĂŵƵĞů ŝƐ Ă ďŝƚ ƐŚLJ ďƵƚ ŚĞ͛Ɛ Ă ǀĞƌLJ ĨƌŝĞŶĚůLJ 'ƌĂĐĞŝƐŽƵƚŐŽŝŶŐĂŶĚůŽƵĚ͘^ŽŵĞƟŵĞƐƐŚĞ

ƉĞƌƐŽŶ͘,ĞǀĂůƵĞƐŚĂƌĚǁŽƌŬ͕ĐŽůůĂďŽƌĂƟŽŶ͕ ŐĞƚƐŝŶĂďŝƚŽĨƚƌŽƵďůĞŝŶĐůĂƐƐďĞĐĂƵƐĞƐŚĞ͛Ɛ
ƌĞƐŽƵƌĐĞĨƵůŶĞƐƐ͕ ŬŝŶĚŶĞƐƐ͕ ŬŶŽǁůĞĚŐĞ͕ ĂůǁĂLJƐ ƚĂůŬŝŶŐ ďƵƚ ƐŚĞ ŵĞĂŶƐ ǁĞůů ĂŶĚ ƐƟůů
ĞĚƵĐĂƟŽŶ͕ƉĞĂĐĞĂŶĚĐŽŵŵƵŶŝĐĂƟŽŶǁŚŝĐŚ ŐĞƚƐŐŽŽĚŐƌĂĚĞƐ͘'ƌĂĐĞǀĂůƵĞƐĞdžĐĞůůĞŶĐĞ͕
ŚĞĨĞĞůƐǁŝůůůĞĂĚŚŝŵŝŶĂŶĞdžĐŝƟŶŐĐĂƌĞĞƌĂƐ ƉĞƌĨŽƌŵĂŶĐĞ͕ ƐƵĐĐĞƐƐ͕ ĨƵŶ͕ ŬŶŽǁůĞĚŐĞ͕
ĂƚĞĂĐŚĞƌ͘ ĐŽŵƉĞƚĞŶĐĞ͕ ĐŽƵƌĂŐĞ͕ ĚĞƚĞƌŵŝŶĂƟŽŶ ĂŶĚ
ĞŵƉŽǁĞƌŵĞŶƚ͘
/ŶŚŝƐĚŽǁŶƟŵĞ^ĂŵƵĞůƉůĂLJƐĨŽŽƚďĂůůǁŝƚŚ
ŚŝƐ ĨƌŝĞŶĚƐ͕ ŽĐĐĂƐŝŽŶĂůůLJ ǀŝƐŝƚƐ ƚŚĞ ŝŶƚĞƌŶĞƚ ^ŚĞ ŝƐ ǀĞƌLJ ŝŶƚŽ ƚĞĐŚŶŽůŽŐLJ ĂŶĚ ŝƐ ŽŌĞŶ Ăƚ
ĐĂĨĠ͕ĂŶĚŚĞůƉƐŚŝƐƐŝƐƚĞƌǁŝƚŚŚĞƌŚŽŵĞǁŽƌŬ͘ ƚŚĞŝŶƚĞƌŶĞƚĐĂĨĠŽƌĞůĞĐƚƌŽŶŝĐƐƐƚŽƌĞƚƌLJŝŶŐ
^ĂŵƵĞů ŝƐ Ă ŐƌĞĂƚ ƐƚƵĚĞŶƚ ĂŶĚ ŝƐ ƐŽ ƐƚƌŽŶŐ ƚŽ ůĞĂƌŶ ŵŽƌĞ ĂďŽƵƚ ŶĞǁ ƚĞĐŚŶŽůŽŐLJ ĂŶĚ
ŚŝƐ ƚĞĂĐŚĞƌ͕ DƌƐ͘ dĞƐƚĂ͕ ŚĂƐ ĂƐŬĞĚ Śŝŵ ƚŽ ŚŽǁ ƚŽ ƵƐĞ ŝƚ͘ 'ƌĂĐĞ ŚŽƉĞƐ ƚŽ ŝŵƉƌŽǀĞ ŚĞƌ
ŚĞůƉ ŽƚŚĞƌ ƐƚƵĚĞŶƚƐ ǁŝƚŚ ƚŚĞŝƌ ƐƚƵĚŝĞƐ͘  /ƚ͛Ɛ ƐŬŝůůƐǁŝƚŚĐŽŵƉƵƚĞƌƐĂŶĚŽƚŚĞƌƚĞĐŚŶŽůŽŐLJ
ďĞĞŶ DƌƐ͘ dĞƐƚĂ͛Ɛ ŚĞůƉ ĂŶĚ ĞŶĐŽƵƌĂŐĞŵĞŶƚ ĂƐƐŚĞĐŽŶƟŶƵĞƐƚŚƌŽƵŐŚƐĐŚŽŽůďƵƚĂůƌĞĂĚLJ
ƚŚĂƚ ŚĂƐ ĂŝĚĞĚ Śŝŵ ŝŶ ĚĞĐŝĚŝŶŐ ŚĞ ǁŽƵůĚ ƐŚĞ ŝƐ ŽŌĞŶ ĂƐŬĞĚ ĨŽƌ ŚĞůƉ ďLJ ƉĞĞƌƐ ĂŶĚ
ůŝŬĞƚŽƚĞĂĐŚŽŶĞĚĂLJĂŶĚďLJŽďƐĞƌǀŝŶŐŚĞƌ ĐŽŵŵƵŶŝƚLJ ŵĞŵďĞƌƐ͊ 'ƌĂĐĞ ĂůƐŽ ǁĂƚĐŚĞƐ
ŝŶƚĞƌĂĐƟŽŶƐ ǁŝƚŚ ƐƚƵĚĞŶƚƐ ŚĞ ĨĞĞůƐ ŚĞ ŚĂƐ ůŽĐĂůĐŚŝůĚƌĞŶǁŚĞŶŶŽƚĂƚƐĐŚŽŽůĂŶĚǁŚĞŶ
ĂůƌĞĂĚLJůĞĂƌŶĞĚŐƌĞĂƚƐŬŝůůƐĨŽƌǁŚĞŶŚĞƌƵŶƐ ƚŚĞŝƌƉĂƌĞŶƚƐĂƌĞǁŽƌŬŝŶŐ͘
ŚŝƐŽǁŶĐůĂƐƐƌŽŽŵŽĨƐƚƵĚĞŶƚƐ͘
'ƌĂĐĞŚŽƉĞƐƚŽŐŽƚŽĂƵŶŝǀĞƌƐŝƚLJĂŌĞƌƐĐŚŽŽů
^ĂŵƵĞů ŚĂƐ Ă LJŽƵŶŐĞƌ ƐŝƐƚĞƌ DĂƌLJ ǁŚŽ ŝƐ ĂŶĚďĞĐŽŵĞĂĐŽŵƉƵƚĞƌĞŶŐŝŶĞĞƌ͘^ŚĞĂŶĚ
ŶŽƚ Ă ǀĞƌLJ ƐƚƌŽŶŐ ƐƚƵĚĞŶƚ ďƵƚ ŐƌĞĂƚ ǁŝƚŚ ŚĞƌ ďƌŽƚŚĞƌ͕ dŚŽŵĂƐ͕ ĂƌĞ ǀĞƌLJ ĚŝīĞƌĞŶƚ͘
ƉĞŽƉůĞʹƐŚĞǁĂŶƚƐƚŽďĞĂŵŽǀŝĞƐƚĂƌŽŶĞ dŚŽŵĂƐ ǁĂŶƚƐ ƚŽ ŽǁŶ Ă ŐƌŽĐĞƌLJ ƐƚŽƌĞ ŽŶĞ
ĚĂLJ͊^ĂŵƵĞůǁŝůůƚĂůŬĂďŽƵƚŚĞƌƐŽŵĞƟŵĞƐ ĚĂLJ͘ ĞƐƉŝƚĞ ƚŚĞŝƌ ĚŝīĞƌĞŶĐĞƐ͕ 'ƌĂĐĞ ĐĂƌĞƐ
ƚŚƌŽƵŐŚŽƵƚ ƚŚĞ Ŭ͘ dŚĞLJ ůŝǀĞ ǁŝƚŚ ƚŚĞŝƌ ĨŽƌdŚŽŵĂƐĂůŽƚĂŶĚǁŝůůĞǀĞŶŵĞŶƟŽŶŚŝŵ
ŵŽƚŚĞƌ͕ĂƐĞĂŵƐƚƌĞƐƐŝŶƚŽǁŶĂŶĚŚŝƐĨĂƚŚĞƌ͕ ŝŶŚĞƌƐƚŽƌŝĞƐƐŽŵĞƟŵĞƐ͘
ĂůŽĐĂůĮƐŚĞƌŵĂŶ͘

Metropolis Trash Management

DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚŝƐďĂƐĞĚŽŶĂďƵƐŝŶĞƐƐƐƚĂƌƚĞĚďLJƌĞĂů'ŚĂŶĂŝĂŶŚŝŐŚƐĐŚŽŽůƐƚƵĚĞŶƚƐĂƐĂƌĞƐƵůƚŽĨƐƚƵĚLJŝŶŐĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉǁŝƚŚ
ĂďƐŽŶŽůůĞŐĞ͘dŽĚĞǀĞůŽƉƚŚĞŝĚĞĂĨŽƌDĞƚƌŽƉŽůŝƐ͕ƚŚĞƚĞĂŵĚĞƚĞƌŵŝŶĞĚƚŚĞƐŬŝůůƐĂŶĚƉĂƐƐŝŽŶƐƚŚĞLJŚĂĚ͕ƚŚĞŶĞĞĚƐŽĨƚŚĞŝƌĐŽŵŵƵŶŝƚLJĂŶĚƚŚĞ
ƌĞƐŽƵƌĐĞƐƚŚĂƚƚŚĞLJŚĂĚƚŚĂƚĐŽƵůĚŚĞůƉƚŚĞŵŐĞƚƐƚĂƌƚĞĚ͘dŚĞLJƚŚĞŶŵĂĚĞƉůĂŶƐĨŽƌŚŽǁƚŚĞďƵƐŝŶĞƐƐǁŽƵůĚƌƵŶ͕ŚŽǁƉĞŽƉůĞǁŽƵůĚůĞĂƌŶĂďŽƵƚ
ƚŚĞŝƌďƵƐŝŶĞƐƐĂŶĚŚŽǁƚŚĞLJǁŽƵůĚƚƌĂĐŬƚŚĞƉƌŽŐƌĞƐƐŽĨƚŚĞŝƌďƵƐŝŶĞƐƐ͘/ŶƐŚŽƌƚ͕ƚŚĞLJƵƐĞĚƚŚĞƉƌŽĐĞƐƐƚŚŝƐŬŝĚĞŶƟĮĞƐƚŽŚĞůƉĐƌĞĂƚĞƚŚĞŝƌ
ďƵƐŝŶĞƐƐ͘dŚĞĐŽŵƉůĞƚĞĚďƵƐŝŶĞƐƐƉůĂŶĨŽƌDĞƚƌŽƉŽůŝƐĐĂŶďĞĨŽƵŶĚŝŶƉƉĞŶĚŝdžs//͘džĂŵƉůĞƐĨƌŽŵƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚďƵƐŝŶĞƐƐ
ĂƌĞƵƐĞĚƚŚƌŽƵŐŚŽƵƚƚŚĞŬ͘dŚŝƐďƵƐŝŶĞƐƐŝƐĂŐƌĞĂƚĞdžĂŵƉůĞŽĨƚŚĞǁĂLJƐƚŚĂƚLJŽƵŶŐƉĞŽƉůĞĐĂŶĚĞǀĞůŽƉĂĚLJŶĂŵŝĐďƵƐŝŶĞƐƐƚŚĂƚŽīĞƌƐŝŶĐŽŵĞ
ƚŽƚŚĞŽǁŶĞƌĂŶĚŐƌĞĂƚǀĂůƵĞƚŽƚŚĞŝƌĐŽŵŵƵŶŝƚLJ͊

10 | Introduction
T HINKING
 Part 1: T hinking
dŚŝƐƉĂƌƚŝƐĨŽĐƵƐĞĚŽŶĚĞǀĞůŽƉŝŶŐLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂďLJŐĞƫŶŐƚŽŬŶŽǁLJŽƵƌƐĞůĨĂŶĚ
LJŽƵƌƐƵƌƌŽƵŶĚŝŶŐƐďĞƩĞƌ͘dŚŝƐƉĂƌƚŝƐŶŽƚĂůŝŶĞĂƌƉƌŽĐĞƐƐ͖LJŽƵŵĂLJŶĞĞĚƚŽƌĞƉĞĂƚŝƚ
ĂĨĞǁƟŵĞƐƚŽĚĞǀĞůŽƉĂŶŝĚĞĂǁŝƚŚǁŚŝĐŚLJŽƵĂƌĞƐĂƟƐĮĞĚ͕ďĞĨŽƌĞŵŽǀŝŶŐŽŶƚŽWĂƌƚ
ϮĂŶĚWĂƌƚϯ͘

/ƚŝƐLJŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨLJŽƵƌƐŬŝůůƐ͕ƉĂƐƐŝŽŶƐ͕ďĞůŝĞĨƐ͕ƌĞůĂƟŽŶƐŚŝƉƐ͕ĂŶĚĐŽŵŵƵŶŝƚLJ
ƚŚĂƚ ƐƉĂƌŬ ĂŶ ŝĚĞĂ ĨŽƌ Ă ŐƌĞĂƚ ďƵƐŝŶĞƐƐ͘ zŽƵƌ ƐŬŝůůƐ͕ ƉĂƐƐŝŽŶƐ͕ ĂŶĚ ďĞůŝĞĨƐ ĚƌŝǀĞ LJŽƵƌ
ŵŽƟǀĂƟŽŶĂŶĚŐŽĂůƐĨŽƌĂůůƚŚĂƚLJŽƵĚŽ͕LJŽƵƌƌĞůĂƟŽŶƐŚŝƉƐŚĞůƉďƵŝůĚƵƉŽŶƚŚĞƐŬŝůůƐĞƚ
LJŽƵŚĂǀĞĂŶĚǁŝůůŚĞůƉLJŽƵƚŽĞdžƚĞŶĚLJŽƵƌĐĂƉĂďŝůŝƟĞƐďLJďĞŝŶŐĂďůĞƚŽĂƐŬĨŽƌŚĞůƉ͘LJ
ŬŶŽǁŝŶŐƚŚĞŶĞĞĚƐŽĨLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚĮůůŝŶŐƚŚĂƚŶĞĞĚǁŝƚŚLJŽƵƌďƵƐŝŶĞƐƐ͛ƐŐŽŽĚ
ŽƌƐĞƌǀŝĐĞLJŽƵĐĂŶŚĞůƉďŽƚŚLJŽƵƌƐĞůĨĂŶĚƚŚĞĐŽŵŵƵŶŝƚLJĂƌŽƵŶĚLJŽƵ͘

dŚŝƐƉĂƌƚŚĂƐƚŚƌĞĞŵĂŝŶŽďũĞĐƟǀĞƐ͗
• dŽŚĞůƉLJŽƵŝĚĞŶƟĨLJLJŽƵƌƐŬŝůůƐ͕ƉĂƐƐŝŽŶƐĂŶĚůĞĂĚĞƌƐŚŝƉƐƚLJůĞ
• dŽŝĚĞŶƟĨLJƉƌŽďůĞŵƐŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJĂƐƉŽƚĞŶƟĂůŽƉƉŽƌƚƵŶŝƟĞƐ
• dŽĚĞǀĞůŽƉĂĨĞĂƐŝďůĞĂŶĚŝŵƉůĞŵĞŶƚĂďůĞďƵƐŝŶĞƐƐŝĚĞĂƚŚĂƚLJŽƵǁŝůůĚĞǀĞůŽƉŝŶ
ƚŚĞƌĞƐƚŽĨƚŚĞŐƵŝĚĞ
>> Being an
Entrepreneur

tŚĂƚŝƐŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ

1
ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ
ŽŵŵƵŶŝĐĂƟŶŐ
hƐŝŶŐ/ĚĞĂƐƚŽĐƟŽŶ
dŚŝƐĐŚĂƉƚĞƌǁŝůůůĂLJŽƵƚĂďƌŝĞĨŽǀĞƌǀŝĞǁŽĨǁŚĂƚƚŽĞdžƉĞĐƚĂƐLJŽƵďĞŐŝŶƚŽƚƵƌŶLJŽƵƌŝĚĞĂƐ
ŝŶƚŽĂĐƟŽŶ͘zŽƵǁŝůůůĞĂƌŶĂďŽƵƚǁŚĂƚĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŵĞĂŶƐĂŶĚǁŚĂƚŝƚŵĞĂŶƐƚŽďĞĂŶ
ĞŶƚƌĞƉƌĞŶĞƵƌ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Entrepreneur: ĂƉĞƌƐŽŶƚŚĂƚƵƟůŝnjĞƐ
ƉƌŽďůĞŵͲƐŽůǀŝŶŐƚĞĐŚŶŝƋƵĞƐƚŽƐĞĞŬ
ŽƵƚŶĞǁŽƉƉŽƌƚƵŶŝƟĞƐ͘
Entrepreneurship: ĂǁĂLJŽĨ
ƚŚŝŶŬŝŶŐĂŶĚĂĐƟŶŐƚŚĂƚĨŽĐƵƐĞƐŽŶ
ŝĚĞŶƟĨLJŝŶŐŽƉƉŽƌƚƵŶŝƟĞƐ͕ŝŶĨŽƌŵƐ
ĂĐƟŽŶǁŝƚŚĂŶĂůLJƐŝƐ͕ĂŶĚŝƐĚƌŝǀĞŶďLJ
ĂƉĂƐƐŝŽŶĂƚĞŝŶĚŝǀŝĚƵĂůŽƌƚĞĂŵ͘
Rocketpitch: ďƌŝĞĨƉƌĞƐĞŶƚĂƟŽŶ
ŽĨĂďƵƐŝŶĞƐƐŝĚĞĂƵƐĞĚƚŽĂƩƌĂĐƚ
ŝŶǀĞƐƚŽƌƐ͕ĂĚǀŝƐŽƌƐ͕ƉĂƌƚŶĞƌƐ͕ĂŶĚ
ŽƚŚĞƌĐŽůůĂďŽƌĂƚŽƌƐ͘
 Lesson 1.1: tŚĂƚŝƐŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ͍
ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŝƐĞǀĞƌLJǁŚĞƌĞ͘ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŝƐĂƉƌŽďůĞŵƐŽůǀŝŶŐƚĞĐŚŶŝƋƵĞĂŶĚǁĂLJŽĨƚŚŝŶŬŝŶŐŝŶ
ǁŚŝĐŚĂƉƌŽďůĞŵ͕ĂǁĂŶƚŽƌŶĞĞĚŽĨĂŐƌŽƵƉŽĨƉĞŽƉůĞ͕ŝƐŝĚĞŶƟĮĞĚĂƐĂŶŽƉƉŽƌƚƵŶŝƚLJ͘dŚĂƚŽƉƉŽƌƚƵŶŝƚLJ
ŝƐ ƚŚĞŶ ĂƉƉƌŽĂĐŚĞĚ ƚŚƌŽƵŐŚ ƚŚĞ ƉƌĂĐƟĐĞ ŽĨ ĂĐƟŶŐ ǁŝƚŚ ƚŚĞ ƌĞƐŽƵƌĐĞƐ ĂǀĂŝůĂďůĞ͕ ůŝŵŝƟŶŐ ƌŝƐŬ ďLJ
ƵŶĚĞƌƐƚĂŶĚŝŶŐŽŶĞ͛ƐƐĞůĨ͕ĂǀĂŝůĂďůĞƌĞƐŽƵƌĐĞƐĂŶĚƌĞůĂƟǀĞĞŶǀŝƌŽŶŵĞŶƚ͕ĂĐŬŶŽǁůĞĚŐŝŶŐƚŚĞƵŶŬŶŽǁŶ͕
ĂŶĚƚŚĞŶůĞĂƌŶŝŶŐĨƌŽŵƚŚĞƐƵĐĐĞƐƐĞƐĂŶĚĨĂŝůƵƌĞƐŽĨƚŚĞĂĐƟŽŶŽƌĂĐƟŽŶƐƚĂŬĞŶ͘

Act

Build Learn

dƌĂĚŝƟŽŶĂůůLJ͕ ƚŚŝƐ ŚĂƐ ďĞĞŶ ƚĂůŬĞĚ ĂďŽƵƚ ĂƐ ďĞŝŶŐ ĂĐĐŽŵƉůŝƐŚĞĚ ƚŚƌŽƵŐŚ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ Ă ŶĞǁ
ďƵƐŝŶĞƐƐ͕ĂƉĂƌƟĐƵůĂƌŽƵƚĐŽŵĞŽĨĐŽŵƉůĞƟŶŐƚŚŝƐŬ͘,ŽǁĞǀĞƌ͕ĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĂŶĚŶƚƌĞƉƌĞŶĞƵƌŝĂů
dŚŽƵŐŚƚĂŶĚĐƟŽŶĐĂŶďĞĂƉƉůŝĞĚƚŽĂŶLJĞdžŝƐƟŶŐƐŝƚƵĂƟŽŶƚŽĐƌĞĂƚĞŝŶŶŽǀĂƟǀĞŶĞǁƐŽůƵƟŽŶƐƚŽǀĂƌŝŽƵƐ
ƉƌŽďůĞŵƐ ĂŶĚ ƐŝƚƵĂƟŽŶƐ͘ ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ ŝƐ ůĞĚ ďLJ ƉĞŽƉůĞ ǁŝƚŚ ƚŚĞ ƐŬŝůůƐĞƚ ĚĞƐĐƌŝďĞĚ ĂďŽǀĞ͖ ƚŚĞƐĞ
ƉĞŽƉůĞĂƌĞĐĂůůĞĚĞŶƚƌĞƉƌĞŶĞƵƌƐ͘

Lesson 1.2: Being an Entrepreneur

dŚĞƌĞ ĂƌĞ ŵĂŶLJ ŵLJƚŚƐ ĂďŽƵƚ ƚŚĞ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ĂŶĚ ĂĐƟŽŶƐ ŽĨ ĞŶƚƌĞƉƌĞŶĞƵƌƐ ƚŚĂƚ ŽŌĞŶ ĐŽŶǀĞLJ
ĞŶƚƌĞƉƌĞŶĞƵƌƐ ĂƐ ƌŝƐŬͲƚĂŬŝŶŐ͕ ƐĞůĨͲĐŽŶĮĚĞŶƚ͕ Žƌ ǁĞĂůƚŚLJ ŝŶĚŝǀŝĚƵĂůƐ͘ dŚĞ ŵŽƐƚ ĐŽŵŵŽŶ ŵLJƚŚ ŝƐ ƚŚĂƚ
ĞŶƚƌĞƉƌĞŶĞƵƌƐĂƌĞďŽƌŶʹƚŚĂƚŽŶůLJĐĞƌƚĂŝŶƉĞŽƉůĞĐĂŶďĞĞŶƚƌĞƉƌĞŶĞƵƌƐ͘dŚŝƐŝƐŶŽƚƚŚĞĐĂƐĞ͊ĞůŽǁŝƐĂ
ƚĂďůĞƚŚĂƚĐŽŵƉĂƌĞƐǁŚĂƚĞŶƚƌĞƉƌĞŶĞƵƌƐĂƌĞĂŶĚĂƌĞŶŽƚ͘

What are entrepreneurs not? What are entrepreneurs?

ŶƚƌĞƉƌĞŶĞƵƌƐŚĂǀĞĂůŽǁĂƉƉĞƟƚĞĨŽƌƌŝƐŬ͘
,ĂǀĞĂŶĂƉƉĞƟƚĞĨŽƌƌŝƐŬ /ŶƐƚĞĂĚ͕ƚŚĞLJĂƌĞĂĚĞƉƚĂƚƌĞĚƵĐŝŶŐĂŶĚ
ƐƉƌĞĂĚŝŶŐƌŝƐŬ͘
ŶƚƌĞƉƌĞŶĞƵƌƐŽŌĞŶƐƚĂƌƚǁŝƚŚŽƵƚĂƐŚĂƌƉůLJ
sŝƐŝŽŶĂƌLJ
ĚĞĮŶĞĚŐŽĂůŽƌǀŝƐŝŽŶ͘
ŶƚƌĞƉƌĞŶĞƵƌƐĚŝƐƚƌƵƐƚƉƌŽũĞĐƟŽŶƐ͕
&ŽƌĞƐĞĞƚŚĞĨƵƚƵƌĞ ĞdžƚƌĂƉŽůĂƟŽŶƐ͕ƐƚƵĚŝĞƐ͕ĞƚĐ͘ƚŚĂƚƉƵƌƉŽƌƚƚŽ
ƉƌĞĚŝĐƚƚŚĞĨƵƚƵƌĞ͘
ŶƚƌĞƉƌĞŶĞƵƌƐĐƌĞĂƚĞŶĞǁďƵƐŝŶĞƐƐĞƐƚŚĂƚ
ƐĂƟƐĨLJŶĞĞĚƐ͕ďƵƚƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝƐŶŽƚ
ŶĞĐĞƐƐĂƌŝůLJŽƌŝŐŝŶĂů͘ŶƚƌĞƉƌĞŶĞƵƌƐĚŽŶ͛ƚũƵƐƚ
ƌĞĂƟǀĞ
ƐƵĚĚĞŶůLJŚĂǀĞĂŶŝĚĞĂͲͲƚŚĞLJĐĂŶƵƐĞƚŚĞŵĞƚŚŽĚ
ŽĨƚŚŝŶŬŝŶŐ͕ĂĐƟŶŐ͕ĂŶĚůĞĂƌŶŝŶŐƚŽĐŽŵĞƵƉǁŝƚŚ
ŝŶŶŽǀĂƟǀĞŝĚĞĂƐ͘
^ĞůĨͲĐŽŶĮĚĞŶƚ͕ĚĞƚĞƌŵŝŶĞĚ͕ŽǀĞƌͲĐŽŶƚƌŽůůŝŶŐ͕ ŶƚƌĞƉƌĞŶĞƵƌƐŵĂLJĞdžŚŝďŝƚƐŽŵĞŽĨƚŚĞƐĞ
ĚĞĐŝƐŝǀĞ͕ĂŶĚĐŽŶĮĚĞŶƚ ƋƵĂůŝƟĞƐĂƚƟŵĞƐďƵƚŶŽŵŽƌĞƚŚĂŶĂŶLJŽŶĞĞůƐĞ͘

ŶƚƌĞƉƌĞŶĞƵƌƐ ĐĂŶ ďĞ ĂŶLJŽŶĞ ʹ ĂŶLJŽŶĞ ǁŝůůŝŶŐ ƚŽ ĞŵďƌĂĐĞ ƉƌŽďůĞŵƐ ĂƐ ŽƉƉŽƌƚƵŶŝƟĞƐ͕ ĂŶLJŽŶĞ ǁŚŽ
ĐŚŽŽƐĞƐƚŽĐƌĞĂƚĞĞĐŽŶŽŵŝĐŽƌƐŽĐŝĂůǀĂůƵĞ͘

ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ | T hinking | 15
 ŶƚƌĞƉƌĞŶĞƵƌƐ ƐŽůǀĞ ƉƌŽďůĞŵƐ͘ dŚĞƐĞ ƉƌŽďůĞŵƐ ŽŌĞŶ ŚĂǀĞ ƐŽĐŝĂů ĂŶĚ ĞĐŽŶŽŵŝĐ ŝŵƉĂĐƚ ŝŶ ƚŚĞ
ĐŽŵŵƵŶŝƟĞƐ Žƌ ƌĞŐŝŽŶƐ ŝŶ ǁŚŝĐŚ ƚŚĞLJ ĂƌĞ ŝŵƉůĞŵĞŶƚĞĚ͘ ŶƚƌĞƉƌĞŶĞƵƌƐ ǁŽƌůĚǁŝĚĞ ĂĚĚƌĞƐƐ Ă ďƌŽĂĚ
ƌĂŶŐĞŽĨǁĂŶƚƐĂŶĚŶĞĞĚƐ͘ŽƚŚƚŚĞĐŽŵŵƵŶŝƚLJƐƚŽƌĞĨŽƵŶĚĞƌ͕ǁŚŽƌĞĐŽŐŶŝnjĞƐĂŶĞĞĚĨŽƌĂůŽĐĂƟŽŶĨŽƌ
ĐŽŵŵƵŶŝƚLJŵĞŵďĞƌƐƚŽĮŶĚŚŽƵƐĞŚŽůĚŐŽŽĚƐŝŶŽŶĞƉůĂĐĞ͕ĂŶĚƚŚĞŝŶĚŝǀŝĚƵĂůƐ͕ǁŚŽĚĞǀĞůŽƉǁĂƚĞƌ
ĮůƚƌĂƟŽŶ ƐLJƐƚĞŵƐ ƚŽ ďƌŝŶŐ ĐůĞĂŶ ǁĂƚĞƌ ƚŽ ŶĞǁ ƉĂƌƚƐ ŽĨ ƚŚĞ ǁŽƌůĚ͕ ĂƌĞ ĞdžĂŵƉůĞƐ ŽĨ ĞŶƚƌĞƉƌĞŶĞƵƌƐ ŝŶ
ĂĐƟŽŶ͘

ŶƚƌĞƉƌĞŶĞƵƌƐǁŽƌŬƚŽůŝŵŝƚƌŝƐŬƚŚƌŽƵŐŚƌĞƐĞĂƌĐŚ͕ĂƐLJŽƵǁŝůůĚŽ͘ŶƚƌĞƉƌĞŶĞƵƌƐĂƌĞǀĞƌLJƐĞůĨͲĂǁĂƌĞĂŶĚ
ĚĞĮŶĞƚŚĞŝƌŐŽĂůƐĂŶĚǀŝƐŝŽŶƐĂƐƉĂƌƚŽĨƚŚĞŝƌƉƌŽĐĞƐƐ͕ĂƐLJŽƵǁŝůůĚŽ͘ŶƚƌĞƉƌĞŶĞƵƌƐƚĂŬĞĂĐƟŽŶ͕ĂƐLJŽƵ
ǁŝůůĚŽĂƐLJŽƵŐĞƚŝŶƚŽLJŽƵƌĐŽŵŵƵŶŝƚLJƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞŽƉƉŽƌƚƵŶŝƟĞƐƚŚĂƚƐƵƌƌŽƵŶĚLJŽƵ͊/ŶƐƵŵŵĂƌLJ
ʹLJŽƵĐĂŶďĞĐŽŵĞĂŶĞŶƚƌĞƉƌĞŶĞƵƌĂŶĚƚŚĞƚŽŽůƐǁŝƚŚŝŶƚŚŝƐŬǁŝůůŚĞůƉLJŽƵĚĞǀĞůŽƉLJŽƵƌƐŬŝůůƐĞƚ͘

Lesson 1.3: ŽŵŵƵŶŝĐĂƟŶŐ

ůůĞŶƚƌĞƉƌĞŶĞƵƌƐŵƵƐƚďĞĂďůĞƚŽĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚŵĂŶLJĚŝīĞƌĞŶƚƉĞŽƉůĞ͘ŽƚŚǀĞƌďĂůĂŶĚǁƌŝƩĞŶ
ĐŽŵŵƵŶŝĐĂƟŽŶƐ ĂƌĞ ŝŵƉŽƌƚĂŶƚ͊ dŚĞ ďĞƐƚ ǁĂLJ ƚŽ ďĞĐŽŵĞ ƐŬŝůůĞĚ Ăƚ ĐŽŵŵƵŶŝĐĂƟŶŐ ŝƐ ďLJ ƉƌĂĐƟĐŝŶŐ͘
dŚĞƌĞ ĂƌĞ ƚǁŽ ƚLJƉĞƐ ŽĨ ĐŽŵŵƵŶŝĐĂƟŽŶƐ ƚŚĂƚ ǁŝůů ďĞ ŝŵƉŽƌƚĂŶƚ ƚŚƌŽƵŐŚŽƵƚ ƚŚŝƐ Ŭ͗ ƌŽĐŬĞƚ ƉŝƚĐŚĞƐ
ĂŶĚďƵƐŝŶĞƐƐƉůĂŶƐ͘ƌŽĐŬĞƚƉŝƚĐŚŝƐĂƐŚŽƌƚƐƉĞĞĐŚƚŚĂƚĐŽŶǀĞLJƐŽŶĞ͛ƐǀŝƐŝŽŶ͕ŐŽĂůƐ͕ĂŶĚƉƵƌƉŽƐĞ͖ŝƚ
ŝĚĞŶƟĮĞƐĂŶŽƉƉŽƌƚƵŶŝƚLJĂŶĚďƌŝĞŇLJĚĞƐĐƌŝďĞƐƚŚĞĂƉƉƌŽĂĐŚƚŽƚŚĂƚŽƉƉŽƌƚƵŶŝƚLJʹƚŚĞƐŽůƵƟŽŶʹƚŚĂƚƚŚĞ
ĞŶƚƌĞƉƌĞŶĞƵƌǁŝůůƚĂŬĞ͘ƌŽĐŬĞƚƉŝƚĐŚŝƐƚĂƌŐĞƚĞĚƚŽƉŽƚĞŶƟĂůƐƵƉƉŽƌƚĞƌƐĂŶĚŽƚŚĞƌŝŶƚĞƌĞƐƚĞĚƉĂƌƟĞƐ͘
ďƵƐŝŶĞƐƐƉůĂŶŝƐĂĐŽŶĐŝƐĞĚŽĐƵŵĞŶƚƚŚĂƚŝŶĐůƵĚĞƐƚŚĞƐĂŵĞŝŶĨŽƌŵĂƟŽŶĂƐĂƌŽĐŬĞƚƉŝƚĐŚĂŶĚŝŶĐůƵĚĞƐ
ƚŚĞƌĞƐĞĂƌĐŚĂŶĚĂƐƐƵŵƉƟŽŶƐŽŶǁŚŝĐŚLJŽƵƌĂƉƉƌŽĂĐŚŝƐďĂƐĞĚ͘DŽƐƚŝŵƉŽƌƚĂŶƚůLJ͕ĂďƵƐŝŶĞƐƐƉůĂŶǁŝůů
ŝŶĐůƵĚĞŵŽƌĞĚĞƚĂŝůŽĨŚŽǁLJŽƵǁŝůůƌƵŶĂŶĚŽƌŐĂŶŝnjĞLJŽƵƌƐŽůƵƟŽŶ͘

Rocket Pitch
ŶƚƌĞƉƌĞŶĞƵƌƐŵƵƐƚůĞĂƌŶƚŽĐůĞĂƌůLJĂŶĚĞīĞĐƟǀĞůLJĐŽŵŵƵŶŝĐĂƚĞŝŶĂǁĂLJƚŚĂƚŐĞŶĞƌĂƚĞƐŝŶƚĞƌĞƐƚĨŽƌ
ƚŚĞŝƌŝĚĞĂƐ͘DŽƌĞŽŌĞŶƚŚĂŶŶŽƚLJŽƵŵĂLJŽŶůLJŚĂǀĞĂǀĞƌLJƐŚŽƌƚĂŵŽƵŶƚŽĨƟŵĞƚŽĐŽŶǀĞLJǁŚĂƚŝƐŵŽƐƚ
ŝŵƉŽƌƚĂŶƚĂŶĚͬŽƌŝŵƉƌĞƐƐŝǀĞĂďŽƵƚLJŽƵĂŶĚLJŽƵƌŝĚĞĂƐ͘KŶĞǁĂLJƚŽĚŽƚŚŝƐŝƐƚŚƌŽƵŐŚǁŚĂƚŝƐĐĂůůĞĚĂ
ƌŽĐŬĞƚƉŝƚĐŚʹĂƐƵĐĐŝŶĐƚĚĞůŝǀĞƌLJŽĨĂŶŝĚĞĂŽƌŽƉƉŽƌƚƵŶŝƚLJ͘ƌŽĐŬĞƚƉŝƚĐŚƵƐƵĂůůLJĐŽŶƐŝƐƚƐŽĨĂƐŝŵƉůĞ͕
ƚŚƌĞĞͲŵŝŶƵƚĞŽƌůĞƐƐƉƌĞƐĞŶƚĂƟŽŶƚŚĂƚĞdžƉůĂŝŶƐƚŚĞŵĂƌŬĞƚƉŽƚĞŶƟĂůĂŶĚŚŽǁLJŽƵƌƐŽůƵƟŽŶǁŝůůĂĚĚƌĞƐƐ
ŝƚ͘ ĞĐĂƵƐĞ ƚŚŝƐ ƉƌĞƐĞŶƚĂƟŽŶ ŝƐ ƐŽ ďƌŝĞĨ͕ LJŽƵ ǁĂŶƚ ƚŽ ŝŶĐůƵĚĞ ŽŶůLJ ĞŶŽƵŐŚ ĚĞƚĂŝů ƚŽ ŝŶƚĞƌĞƐƚ ƉŽƐƐŝďůĞ
ƐƵƉƉŽƌƚĞƌƐĂŶĚŚŝŐŚůŝŐŚƚǁŚLJLJŽƵƌŝĚĞĂŝƐƐƉĞĐŝĂů͘ĞĂƐĐŽŶĐŝƐĞĂŶĚƐƚƌĂŝŐŚƞŽƌǁĂƌĚĂƐƉŽƐƐŝďůĞ͕ďƵƚ
ďƌŝŶŐƉĂƐƐŝŽŶĂŶĚĞŶĞƌŐLJƚŽƚŚĞŝĚĞĂƐŽƚŚĂƚŽƚŚĞƌƐĂƌĞŝŶƐƉŝƌĞĚďLJLJŽƵ͘

dŚĞƌĞĂƌĞĨŽƵƌĂƌĞĂƐƚŚĂƚLJŽƵƐŚŽƵůĚĐŽǀĞƌŝŶLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚ͗
 ϭ͘dŚĞEĞĞĚ
 Ϯ͘WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
 ϯ͘'ŽĂůƐ
 ϰ͘ƵĚŝĞŶĐĞĂůůƚŽĐƟŽŶ

DŽƌĞĚĞƚĂŝůĂďŽƵƚƚŚĞƉĂƌƚƐŽĨƚŚĞƌŽĐŬĞƚƉŝƚĐŚĐĂŶďĞĨŽƵŶĚŝŶƚŚĞŽŝŶŐƐĞĐƟŽŶŽĨƚŚŝƐŬ͘

Business Plan
ďƵƐŝŶĞƐƐƉůĂŶŝƐƚLJƉŝĐĂůůLJŵĂĚĞƵƉŽĨŬĞLJŝŶĨŽƌŵĂƟŽŶŝŶĐůƵĚŝŶŐĂƐƵŵŵĂƌLJŽĨƚŚĞŽƉƉŽƌƚƵŶŝƚLJ͕ŵĂƌŬĞƚ
ƌĞƐĞĂƌĐŚŽĨƚŚĞŝŶĚƵƐƚƌLJĂŶĚĞŶǀŝƌŽŶŵĞŶƚŽĨƚŚĞŽƉƉŽƌƚƵŶŝƚLJ͕ƚŚĞĚĞƐĐƌŝƉƟŽŶŽĨƚŚĞƐŽůƵƟŽŶŝŶĐůƵĚŝŶŐ
ĂŶŽƉĞƌĂƟŽŶƐĂŶĚŵĂƌŬĞƟŶŐƉůĂŶ͕ŐŽĂůƐĂŶĚƉƌŽũĞĐƚĞĚŵĞĂƐƵƌĞƐŽĨƚŚŽƐĞŐŽĂůƐʹĮŶĂŶĐŝĂů͕ŝŵƉĂĐƚŽƌ
ŽƚŚĞƌǁŝƐĞĂŶĚŝĚĞŶƟĮĐĂƟŽŶŽĨŶĞĐĞƐƐĂƌLJƌĞƐŽƵƌĐĞƐƚŽŐĞƚƐƚĂƌƚĞĚ͘

ďƵƐŝŶĞƐƐƉůĂŶŝƐůŝŬĞĂƌŽĂĚŵĂƉʹƚŚĞƌĞĂƌĞŵĂŶLJǁĂLJƐƚŽŐĞƚĨƌŽŵƉŽŝŶƚƚŽƉŽŝŶƚ͕ĂŶĚŝŶŵĂŶLJĐĂƐĞƐ
LJŽƵǁŝůůŶŽƚĨŽůůŽǁƚŚĞƌŽĂĚŵĂƉĞdžĂĐƚůLJ͘,ŽǁĞǀĞƌ͕ŝƚƉƌŽǀŝĚĞƐĂĨƌĂŵĞǁŽƌŬƚŽŐĞƚƐƚĂƌƚĞĚĂŶĚŚĞůƉƐĂĐƚ
ĂƐĂĐŚĞĐŬůŝƐƚŝŶĐŽŶƐŝĚĞƌŝŶŐŝŵƉŽƌƚĂŶƚĨĂĐƚŽƌƐĂůŽŶŐƚŚĞǁĂLJ͘zŽƵƌďƵƐŝŶĞƐƐƉůĂŶǁŝůůĐŚĂŶŐĞĂƐLJŽƵďĞŐŝŶ
ƚŽŝŵƉůĞŵĞŶƚLJŽƵƌŝĚĞĂƐĂŶĚůĞĂƌŶĨƌŽŵƚŚŽƐĞĂĐƟŽŶƐdŚĂƚŝƐǁŚLJŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽďĞŐŝŶƉƌĂĐƟĐŝŶŐŽƌ
ƚƌLJŝŶŐŽƵƚLJŽƵƌŝĚĞĂƐĂƐƐŽŽŶĂƐƉŽƐƐŝďůĞʹƚŚĞƌĞ͛ƐŶŽďĞƩĞƌǁĂLJƚŽůĞĂƌŶ͊

tŚĞƌĞ LJŽƵƌ ƌŽĐŬĞƚ ƉŝƚĐŚ ǁŝůů ŚĞůƉ ƐƉĂƌŬ ŝŶƚĞƌĞƐƚ ĨƌŽŵ ƐƵƉƉŽƌƚĞƌƐ͕ LJŽƵƌ ďƵƐŝŶĞƐƐ ƉůĂŶ ƐŚŽƵůĚ ŚĞůƉ ƚŽ
ƐŽůŝĚŝĨLJƚŚĞŚĞůƉŽĨLJŽƵƌƐƵƉƉŽƌƚĞƌƐ͘zŽƵƌďƵƐŝŶĞƐƐ ƉůĂŶǁŝůůƐŚĂƌĞƚŚĞĂƐƐƵŵƉƟŽŶƐƚŚĂƚLJŽƵƌŝĚĞĂŽƌ
ƐŽůƵƟŽŶŝƐďĂƐĞĚŽŶ͕ĂŶĚǁŝůůƐŚŽǁƚŚĞƵŶĚĞƌůLJŝŶŐŝŶŶŽǀĂƟŽŶĂŶĚĐƌĞĂƟŽŶďĞŚŝŶĚLJŽƵƌŝĚĞĂ͘ĚĚŝƟŽŶĂůůLJ͕
ŝƚǁŝůůĐůĂƌŝĨLJƚŚĞŵĞĂƐƵƌĞŵĞŶƚĂŶĚƉƌŽũĞĐƟŽŶŽĨƚŚŽƐĞŐŽĂůƐ͕ǁŚŝĐŚǁŝůůŚĞůƉƉŽƚĞŶƟĂůƐƵƉƉŽƌƚĞƌƐĚĞĐŝĚĞ
ŝĨƚŚŽƐĞŐŽĂůƐĂƌĞďŽƚŚƌĞĂƐŽŶĂďůĞĂŶĚŝŶůŝŶĞǁŝƚŚƚŚĞŝƌŽďũĞĐƟǀĞƐ͘DĂŶLJďƵƐŝŶĞƐƐƉůĂŶƐǁŝůůĐŽǀĞƌƚŚĞ
ĨŽůůŽǁŝŶŐĂƌĞĂƐ͕ƚŚŽƵŐŚĞǀĞƌLJďƵƐŝŶĞƐƐƉůĂŶĐĂŶďĞĚŝīĞƌĞŶƚ͘

16 | T hinking | ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ
džĞĐƵƟǀĞ^ƵŵŵĂƌLJ
dŚŝƐƐĞĐƟŽŶǁŝůůƐĞƌǀĞĂƐĂƐƵŵŵĂƌLJŽĨLJŽƵƌĞŶƟƌĞďƵƐŝŶĞƐƐƉůĂŶ͘dŚĞŐŽĂůŽĨƚŚĞĞdžĞĐƵƟǀĞƐƵŵŵĂƌLJ
ŝƐ ƚŽ ŚŝŐŚůŝŐŚƚ ƚŚĞ ŝŵƉŽƌƚĂŶƚ ƉĂƌƚƐ ŽĨ ĞĂĐŚ ƐĞĐƟŽŶ ŝŶ LJŽƵƌ ďƵƐŝŶĞƐƐ ƉůĂŶ͘ dŚĞ ĞdžĞĐƵƟǀĞ ƐƵŵŵĂƌLJ
ƌĞƋƵŝƌĞƐŝŶĨŽƌŵĂƟŽŶĨƌŽŵƚŚĞŽƚŚĞƌƐĞĐƟŽŶƐƐŽŝƚǁŝůůůŝŬĞůLJďĞƚŚĞůĂƐƚƐĞĐƟŽŶŽĨLJŽƵƌƉůĂŶƚŚĂƚLJŽƵ
ǁƌŝƚĞ͘
DĂƌŬĞƚŶĂůLJƐŝƐ
WŽƐŝƟŽŶŝŶŐ͗ThŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŚŽǁLJŽƵƌŝĚĞĂŝƐƵŶŝƋƵĞĂŶĚĂĚĚƐǀĂůƵĞƌĞůĂƟǀĞƚŽŽƚŚĞƌďƵƐŝŶĞƐƐĞƐ
ǁŚŝĐŚŵĂLJĂůƌĞĂĚLJďĞŽƵƚƚŚĞƌĞĂĚĚƌĞƐƐŝŶŐƚŚĞǀĞƌLJƐĂŵĞŝƐƐƵĞ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞĂƉŽƐŝƟŽŶŝŶŐŵĂƉ͘

^tKd ŶĂůLJƐŝƐ͗ dŚŝƐ ƐĞĐƟŽŶ ĚĞƐĐƌŝďĞƐ ŝŶƚĞƌŶĂů ƐƚƌĞŶŐƚŚ ĂŶĚ ǁĞĂŬŶĞƐƐĞƐ ĂƐ ǁĞůů ĂƐ ĞdžƚĞƌŶĂů
ŽƉƉŽƌƚƵŶŝƟĞƐ ĂŶĚ ƚŚƌĞĂƚƐ ŝŶ ƚŚĞ ŵĂƌŬĞƚƉůĂĐĞ͘ Ğ ƐƵƌĞ ƚŽ ŝŶĐůƵĚĞ ŚŽǁ LJŽƵ ǁŝůů ĐĂƉŝƚĂůŝnjĞ ŽŶ LJŽƵƌ
streŶŐƚŚƐĂŶĚŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚŵŝŶŝŵŝnjĞLJŽƵƌǁĞĂŬŶĞƐƐĞƐĂŶĚƚŚƌĞĂƚƐ͘
WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ;^ŽůƵƟŽŶͿ
DŝƐƐŝŽŶ ^ƚĂƚĞŵĞŶƚ͗ dŚŝƐ ƐĞĐƟŽŶ ĚĞƐĐƌŝďĞƐ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ŝĚĞĂ ŝŶ ĂŶĚ ŝƚƐ ŝŵƉŽƌƚĂŶĐĞ ŝŶ Ă
ƐŚŽƌƚ͕ĐŽŶĐŝƐĞ͕ĂŶĚƉŽǁĞƌĨƵůǁĂLJ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞŝŶLJŽƵƌĚĞƐĐƌŝƉƟŽŶLJŽƵƌŝĚĞĂ͕ƚŚĞŶĞĞĚLJŽƵĂƌĞ
ŵĞĞƟŶŐ͕ĂŶĚƚŚĞƉĞŽƉůĞǁŚŽǁŝůůďĞŶĞĮƚĨƌŽŵLJŽƵƌŝĚĞĂ͘dŚĞŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚŝƐƚŚĞĚƌŝǀŝŶŐĨŽƌĐĞ
ďĞŚŝŶĚĞǀĞƌLJĚĞĐŝƐŝŽŶĨŽƌƚŚĞďƵƐŝŶĞƐƐ͘

WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞĞƐĐƌŝƉƟŽŶ͗dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞ
ŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƚŚĞǀĂůƵĞĂĚĚĞĚďLJLJŽƵƌŝĚĞĂĂŶĚŚŽǁLJŽƵĂƌĞƉŽƐŝƟŽŶŝŶŐLJŽƵƌƐĞůĨŝŶLJŽƵƌďƵƐŝŶĞƐƐ
ĞŶǀŝƌŽŶŵĞŶƚ͘
DĂƌŬĞƟŶŐΘ^ĂůĞƐ
WĞŽƉůĞ͗dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶĚĞƚĂŝůƚŚĞƉĞŽƉůĞǁŚŽƐĞŶĞĞĚLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝƐŵĞĞƟŶŐ͘Ğ
ƐƵƌĞƚŽŝŶĐůƵĚĞĚĞŵŽŐƌĂƉŚŝĐŝŶĨŽƌŵĂƟŽŶĂƐǁĞůůĂƐŚŽǁƚŚĞLJƵƐĞƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘

WƌŽŵŽƟŽŶ͗dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌƉƌŽŵŽƟŽŶƐƚƌĂƚĞŐLJ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞŝŶĨŽƌŵĂƟŽŶĂďŽƵƚLJŽƵƌ
ďƌĂŶĚŝĚĞŶƟƚLJĂƐǁĞůůĂƐŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƚŚĞĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚLJŽƵƌƉůĂŶƐ͘

WůĂĐĞ͗dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐƚŚĞůŽĐĂƟŽŶĂƚǁŚŝĐŚLJŽƵǁŝůůƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ĞƐƵƌĞƚŽ
ĞdžƉůĂŝŶǁŚLJLJŽƵŚĂǀĞƉŝĐŬĞĚƚŚŝƐůŽĐĂƟŽŶĂƐŝƚƌĞůĂƚĞƐƚŽǁŚĂƚLJŽƵŬŶŽǁĂďŽƵƚLJŽƵƌƚĂƌŐĞƚĐƵƐƚŽŵĞƌ͘
WƌŝĐĞ͗dŚŝƐƐĞĐƟŽŶŝĚĞŶƟĮĞƐƚŚĞƉƌŝĐĞĂƚǁŚŝĐŚLJŽƵǁŝůůƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘
KƉĞƌĂƟŽŶƐ
WƌŽĚƵĐƚĂŶĚŝƐƚƌŝďƵƟŽŶ͗dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶĚĞƚĂŝůŚŽǁLJŽƵǁŝůůŐĞƚLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŽ
ƚŚĞĐƵƐƚŽŵĞƌ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞĂĚƌĂǁŝŶŐŽĨLJŽƵƌƐƵƉƉůLJĐŚĂŝŶĂŶĚĂĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚůŝŶŬŝŶLJŽƵƌ
ĐŚĂŝŶĂƐǁĞůůĂƐǁŚĂƚŝŶƉƵƚƐLJŽƵǁŝůůŶĞĞĚĂŶĚĨƌŽŵǁŚŽŵLJŽƵǁŝůůŐĞƚƚŚĞŵ͘

dĞĂŵ͗ dŚŝƐ ƐĞĐƟŽŶ ĚĞƐĐƌŝďĞƐ ƚŚĞ ƚĞĂŵ ŵĞŵďĞƌƐ ǁŚŽ ǁŝůů ďĞ ƌƵŶŶŝŶŐ ƚŚĞ ďƵƐŝŶĞƐƐ͘ Ğ ƐƵƌĞ ƚŽ
ŝŶĐůƵĚĞǁŚĂƚƐŬŝůůƐĞĂĐŚƚĞĂŵŵĞŵďĞƌďƌŝŶŐƐƚŽƚŚĞƚŚĞďƵƐŝŶĞƐƐ͘/ŶĐůƵĚĞĂĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚƚĞĂŵ
ŵĞŵďĞƌ͛ƐƌŽůĞŝŶƚŚĞďƵƐŝŶĞƐƐ͛ƐŽƉĞƌĂƟŽŶƐ͘

ŽƌĞŽŵŵŝƚŵĞŶƚƐ͗dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌĐŽƌĞĐŽŵŵŝƚŵĞŶƚƐƚŽLJŽƵƌƐĞůĨ͕ƚŽĞĂĐŚŽƚŚĞƌ;ŝĨLJŽƵ
ŚĂǀĞĂƚĞĂŵͿ͕ĂŶĚƚŽƚŚĞĐŽŵŵƵŶŝƚLJLJŽƵƌďƵƐŝŶĞƐƐƐĞƌǀĞƐ͘

&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ
^ĂůĞƐƵĚŐĞƚ͗dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐǁŚĂƚLJŽƵƚŚŝŶŬLJŽƵƌĞdžƉĞĐƚĞĚƐĂůĞƐƌĞǀĞŶƵĞƐĂŶĚĞdžƉĞŶƐĞƐǁŝůů
ďĞĨŽƌĂƉĞƌŝŽĚŽĨƟŵĞ͘

WƌŽ&ŽƌŵĂ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͗dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐĂŶĞƐƟŵĂƟŽŶŽĨŚŽǁƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐ
ǁŝůůďĞŽǀĞƌƟŵĞ͘

^ĐŚĞĚƵůĞ ŽĨ ^ƚĂƌƚͲhƉ ŽƐƚƐ͗ dŚŝƐ ƐƚĂƚĞŵĞŶƚ ƐŚŽǁƐ ǁŚĂƚ ĞdžƉĞŶƐĞƐ LJŽƵƌ ďƵƐŝŶĞƐƐ ǁŝůů ŝŶĐƵƌ ďĞĨŽƌĞ
oƉĞƌĂƟŽŶƐƐƚĂƌƚĂŶĚŚŽǁŵƵĐŚĐĂƐŚǁŝůůďĞŶĞĞĚĞĚƚŽĐŽǀĞƌƚŚĞƐĞĞdžƉĞŶƐĞƐ͘

&ƵŶĚŝŶŐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐǁŚĂƚƌĞƐŽƵƌĐĞƐLJŽƵŶĞĞĚƚŽƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐĂŶĚĨƌŽŵǁŚĞƌĞLJŽƵǁŝůůŐĞƚ
ƚŚŽƐĞƌĞƐŽƵƌĐĞƐ͘

ZŝƐŬƐ
dŚŝƐƐĞĐƟŽŶĐŽǀĞƌƐƚŚĞƉŽƐƐŝďůĞƌŝƐŬƐŽĨŽƉĞŶŝŶŐLJŽƵƌďƵƐŝŶĞƐƐ͘DĂŬĞƐƵƌĞƚŽŝŶĐůƵĚĞĂŶLJĂƐƐƵŵƉƟŽŶƐ
LJŽƵĂƌĞŵĂŬŝŶŐĂďŽƵƚLJŽƵƌďƵƐŝŶĞƐƐ͘dŚŝŶŬŽĨǁŚĂƚƚŚĞƌŝƐŬƐƚŚĞƌĞĂƌĞĨŽƌŽƉĞŶŝŶŐLJŽƵƌďƵƐŝŶĞƐƐĂŶĚ
ŚŽǁƚŽŵŝŶŝŵŝnjĞƚŚĞŵ͘

ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ | T hinking | 17
 Lesson 1.4: DŽǀŝŶŐĨƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ
dŚŝƐŬŝƐĚĞƐŝŐŶĞĚƚŽŚĞůƉLJŽƵƵŶĚĞƌƐƚĂŶĚĂŶĚŶĂǀŝŐĂƚĞƚŚĞĞŶƚƌĞƉƌĞŶĞƵƌŝĂůƉƌŽĐĞƐƐ͘zŽƵǁŝůůŵŽǀĞ
ĨƌŽŵďĞŝŶŐĂŚŝŐŚƐĐŚŽŽůƐƚƵĚĞŶƚǁŝƚŚĂŶŝĚĞĂƚŽĂLJŽƵŶŐĞŶƚƌĞƉƌĞŶĞƵƌƌĞĂĚLJƚŽƚĂŬĞĂĐƟŽŶ͘zŽƵǁŝůů
ŚĂǀĞƚŽƚŚŝŶŬĂďŽƵƚLJŽƵƌƐĞůĨ͕LJŽƵƌĂĐƟǀŝƟĞƐ͕ĂŶĚLJŽƵƌƐŬŝůůƐŝŶǁĂLJƐƚŚĂƚĂƌĞƉƌŽďĂďůLJĚŝīĞƌĞŶƚĨƌŽŵŚŽǁ
LJŽƵŚĂǀĞƚŚŽƵŐŚƚĂďŽƵƚƚŚĞŵďĞĨŽƌĞ͘

tƌŝƚĞĂůůŽǀĞƌƚŚĞŬʹĚƌĂǁŝĚĞĂƐ͕ƚĂŬĞŶŽƚĞƐ͕ƵŶĚĞƌůŝŶĞƚĞdžƚ͕ĚŽĂůůƚŚĂƚLJŽƵŶĞĞĚƚŽĚŽƚŽŚĞůƉLJŽƵ
ŐĞŶĞƌĂƚĞŶĞǁŝĚĞĂƐ͘dŽƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚŝƐŬǁŝůůŐƵŝĚĞLJŽƵĨƌŽŵŝĚĞĂƐƚŽĂĐƟŽŶƚŚŝŶŬĂďŽƵƚƚŚĞǁĂLJ
ĂƚƌĞĞŐƌŽǁƐ͘/ŶƚŚĞĐĞŶƚĞƌŝƐLJŽƵ͕ƚŚĞƐĞĞĚĂŶĚLJŽƵƌĐŽŵŵƵŶŝƚLJ͕ƚŚĞŐƌŽƵŶĚŝŶǁŚŝĐŚLJŽƵĂƌĞƉůĂŶƚĞĚ͘
tŚĞƌĞ LJŽƵƌ ƉĂƐƐŝŽŶƐ ĂŶĚ ŬŶŽǁůĞĚŐĞ ŵĞĞƚ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͛Ɛ ŶĞĞĚƐ͕ LJŽƵ ĐĂŶ ĮŶĚ ĂŶ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ
ĐƌĞĂƚĞĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŚĂƚǁŝůůŵĂŬĞLJŽƵƌĐŽŵŵƵŶŝƚLJĂďĞƩĞƌƉůĂĐĞͲƚŚĞƚƌĞĞďĞŐŝŶƐƚŽŐƌŽǁƌŽŽƚƐ͘
dŚĞƚƌĞĞƐƉƌŽƵƚƐĨƌŽŵƚŚĞŐƌŽƵŶĚĂŶĚďĞŐŝŶƐƚŽůĞĂĨŽŶĐĞLJŽƵĂƌĞĂďůĞƚŽĚĞĮŶĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJĂŶĚ
ƚĂŬĞĂĐƟŽŶďLJĚĞǀĞůŽƉŝŶŐĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶ͘dŚĞĐŽŶĮĚĞŶĐĞLJŽƵŐĂŝŶĨƌŽŵƵŶĚĞƌƐƚĂŶĚŝŶŐ
LJŽƵƌƐĞůĨĂŶĚůĞĂƌŶŝŶŐƚŚĞƐŬŝůůƐĨƌŽŵǁŝƚŚŝŶ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶĂĐƚĂƐƚŚĞƐƵŶĚŽĞƐƚŽƚŚĞƚƌĞĞʹŝƚ
ŝŶƐƉŝƌĞƐ͕ŝƚĞŶĐŽƵƌĂŐĞƐĂŶĚŝƚĞŶĂďůĞƐ͘

Confidence

entrepreneurial
solu"on

you

opportunity

community
/ƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ ĂůǁĂLJƐ ŬĞĞƉ ŝŶ ŵŝŶĚ ƚŚĂƚ ƚŚŝƐ ŝƐ Ă ĐLJĐůĞ͘  Ɛ LJŽƵ ĐŚĂŶŐĞ͕ LJŽƵ ŵĂLJ ŶĞĞĚ ƚŽ ƌĞƚŚŝŶŬ
ǁŚĂƚ LJŽƵ ĂƌĞ ƉĂƐƐŝŽŶĂƚĞ ĂŶĚ ŬŶŽǁůĞĚŐĞĂďůĞ ĂďŽƵƚ ĂŶĚ ĂƐ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ ĐŚĂŶŐĞƐ LJŽƵ ŵĂLJ ŶĞĞĚ
ƚŽ ƌĞƚŚŝŶŬ ǁŚĂƚ ƚŚĞ ƌĞĂů ŶĞĞĚƐ ĂƌĞ ŽĨ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ ŶŽǁ͘ :ƵƐƚ ĂƐ Ă ƚƌĞĞ ŵƵƐƚ ƌĞĂĐƚ ƚŽ ĐŚĂŶŐĞƐ ŝŶ
ǁĞĂƚŚĞƌ͕ŝŶĐůƵĚŝŶŐƉĞƌŝŽĚƐŽĨĚƌŽƵŐŚƚŽƌŚĞĂǀLJƌĂŝŶ͕LJŽƵƚŽŽŵƵƐƚďĞƉƌĞƉĂƌĞĚĨŽƌƵŶĞdžƉĞĐƚĞĚĐŚĂŶŐĞƐ͘
tŚĞŶĞǀĞƌLJŽƵŽƌLJŽƵƌĐŽŵŵƵŶŝƚLJĐŚĂŶŐĞƐ͕LJŽƵǁŝůůŚĂǀĞƚŽƌĞͲĞǀĂůƵĂƚĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJĂŶĚ͕ĂƐĂƌĞƐƵůƚ͕
ƚŚĞ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ƐŽůƵƟŽŶ͕ ůŽŽŬŝŶŐ ĨŽƌ ǁĂLJƐ ƚŽ ŐƌŽǁ ƚĂůůĞƌ͕ ƐƚƌŽŶŐĞƌ ĂƐ ƚŚĞ ƚƌĞĞ ĚŽĞƐ Žƌ Ă ŵŽƌĞ
ƐƵĐĐĞƐƐĨƵů͕ŝŵƉĂĐƞƵůŵĞŵďĞƌŽĨLJŽƵƌĐŽŵŵƵŶŝƚLJ͘

18 | T hinking | ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ
&ŽůůŽǁĂůŽŶŐǁŝƚŚƚŚĞƉƌŽŐƌĞƐƐƌĞƉŽƌƚĂƐLJŽƵŵŽǀĞƚŚƌŽƵŐŚƚŚĞ/ĚĞĂƐƚŽĐƟŽŶtŽƌŬŬ͘ZĞĂĚƚŚĞ
WƌŽŐƌĞƐƐ^ƚĂƚĞŵĞŶƚŽŶƚŚĞůĞŌƐŝĚĞŽĨƚŚĞƚĂďůĞ͕ƚŚĞŶ͕ŝŶĂĐŽůƵŵŶ͕ĐŚĞĐŬŽīŝĨƚŚĞWƌŽŐƌĞƐƐƐƚĂƚĞŵĞŶƚŝƐ
ƚƌƵĞĂŶĚĂĚĚĐŽŵŵĞŶƚƐĂďŽƵƚǁŚĂƚƚŚĂƚƐƚĂƚĞŵĞŶƚŵĞĂŶƐƚŽLJŽƵ͘dŚŝƐŬŝƐĚĞƐŝŐŶĞĚĨŽƌLJŽƵƚŽƵƐĞ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶƐŽďĞƐƵƌĞƚŽĂĚĚLJŽƵƌĐŽŵŵĞŶƚƐĂďŽƵƚLJŽƵƌƉƌŽŐƌĞƐƐĨŽƌĞĂĐŚƟŵĞLJŽƵƵƐĞƚŚĞ
Ŭ͘ŽŵƉĂƌĞLJŽƵƌŶŽƚĞƐʹLJŽƵŵĂLJďĞŝŵƉƌĞƐƐĞĚƚŽƐĞĞŚŽǁLJŽƵŐƌŽǁĞĂĐŚƟŵĞ͘

WŽŐƌĞƐƐ^ƚĂƚĞŵĞŶƚ &ŝƌƐƚ ^ĞĐŽŶĚ dŚŝƌĚ

dŝŵĞ dŝŵĞ dŝŵĞ
/ďĞůŝĞǀĞ/ĂŵĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘
/ĐĂŶŝĚĞŶƟĨLJƚŚĞĐŽƌĞǀĂůƵĞƐ/ůŝǀĞďLJ͘
/ŬŶŽǁǁŚĂƚ/ĂŵƉĂƐƐŝŽŶĂƚĞĂďŽƵƚĂŶĚŚŽǁ/ĐĂŶƐƉĞŶĚŵŽƌĞ
ƟŵĞĚŽŝŶŐŝƚ͘
/ŚĂǀĞďƵŝůƚŵLJŶĞƚǁŽƌŬƚƌĞĞ͘/ŬŶŽǁŽĨƚŚĞƉĞŽƉůĞĂƌŽƵŶĚŵĞ
ĂŶĚŚŽǁ/ĐĂŶĐŽŶƟŶƵĞƚŽŵĞĞƚŶĞǁƉĞŽƉůĞĂŶĚĞdžƉĂŶĚŵLJ
ŶĞƚǁŽƌŬ͘
/ĐĂŶƌĞĐŽŐŶŝnjĞŶĞĞĚƐŝŶŵLJĐŽŵŵƵŶŝƚLJĂŶĚŚĂǀĞŝĚĞŶƟĮĞĚ
ƐƉĞĐŝĮĐŶĞĞĚƐƚŚĂƚ/ŵĂLJďĞĂďůĞƚŽŚĞůƉĂĚĚƌĞƐƐ͘
/ŚĂǀĞĞǀĂůƵĂƚĞĚŵLJĂďŝůŝƚLJƚŽĐƌĞĂƚĞƐŽůƵƟŽŶƐƚŽƚŚĞŶĞĞĚƐ/ŚĂǀĞ
ŽďƐĞƌǀĞĚ͘DLJĞǀĂůƵĂƟŽŶŝŶĚŝĐĂƚĞƐƚŚĂƚƚŚĞƌĞŝƐĂĚĞŵĂŶĚĨŽƌƚŚŝƐ
ƐŽůƵƟŽŶĂŶĚƚŚĂƚƚŚĞƐŽůƵƟŽŶŝƐƚŚĞďĞƐƚƉŽƐƐŝďůĞŽŶĞŐŝǀĞŶƚŚĞ
ŶĞĞĚƐĂŶĚƌĞƐŽƵƌĐĞƐŽĨƚŚĞĐŽŵŵƵŶŝƚLJ͘
/ŚĂǀĞƌĞƐĞĂƌĐŚĞĚŽƚŚĞƌƐŽůƵƟŽŶƐƚŚĂƚĞdžŝƐƚƚŽƚŚŝƐŶĞĞĚĂŶĚƚŚĞ
ƌĞƐĞĂƌĐŚŝŶĚŝĐĂƚĞƐƚŚĂƚŵŝŶĞŝƐĂƵŶŝƋƵĞƐŽůƵƟŽŶ͘/ĂŵĨĂŵŝůŝĂƌ
ǁŝƚŚƚŚŽƐĞƚŚĂƚǁŝůůďĞĐŽŶƐŝĚĞƌĞĚĐŽŵƉĞƟƚŽƌƐĂŶĚŽƚŚĞƌĚĞƚĂŝůƐ
ƵŶŝƋƵĞƚŽƚŚĞŵĂƌŬĞƚŝŶǁŚŝĐŚŵLJďƵƐŝŶĞƐƐƐŽůƵƟŽŶǁŝůůůŝǀĞ͘
/ŚĂǀĞĚĞǀĞůŽƉĞĚĂǁĂLJƚŚĂƚĐƵƐƚŽŵĞƌƐǁŝůůůĞĂƌŶĂďŽƵƚŵLJ
ƐŽůƵƟŽŶ͘
/ŬŶŽǁĂůůŽĨƚŚĞŝŶƉƵƚƐŽĨŵLJƐŽůƵƟŽŶĂŶĚǁŚĞƌĞƚŚĞLJǁŝůůĐŽŵĞ
ĨƌŽŵ͘
/ŬŶŽǁŚŽǁŵLJƐŽůƵƟŽŶǁŝůůďĞĐƌĞĂƚĞĚĂŶĚǁŝůůŵŽǀĞĨƌŽŵƚŚĞ
ŵĂƚĞƌŝĂůƐĨƌŽŵŵLJƐƵƉƉůŝĞƌƐƚŽƚŚĞƐŽůƵƟŽŶĨŽƌŵLJĐƵƐƚŽŵĞƌƐ͘
/ŬŶŽǁǁŚĂƚƉĞŽƉůĞ/ŶĞĞĚŽŶŵLJƚĞĂŵ͘
/ŚĂǀĞĂƉƌŽĐĞƐƐŝŶƉůĂĐĞĨŽƌƌĞĐŽƌĚŝŶŐŵLJƚƌĂŶƐĂĐƟŽŶƐĂŶĚ/
ƵŶĚĞƌƐƚĂŶĚŚŽǁ/ĐĂŶƵƐĞƚŚĂƚĚĂƚĂƚŽŵĂŬĞĚĞĐŝƐŝŽŶƐ͘
/ŚĂǀĞŝĚĞŶƟĮĞĚƚŚĞǁĂLJƐƚŚĂƚ/ǁŝůůŐĞƚƚŚĞŵĂƚĞƌŝĂůƐ/ŶĞĞĚ
ƚŽŐĞƚƐƚĂƌƚĞĚ͘/ŚĂǀĞĂƉůĂŶĨŽƌŚŽǁ/ǁŝůůŐĞƚĂŶLJƌĞŵĂŝŶŝŶŐ
ƌĞƐŽƵƌĐĞƐŶĞĐĞƐƐĂƌLJ͘
/ŚĂǀĞƉƌĂĐƟĐĞĚŵLJƌŽĐŬĞƚƉŝƚĐŚǁŝƚŚĚŝīĞƌĞŶƚƉĞŽƉůĞĂŶĚŚĂǀĞ
ƚĂŝůŽƌĞĚƚŚĞƉŝƚĐŚƚŽĚŝīĞƌĞŶƚƉĞŽƉůĞǁŚŽŵŝŐŚƚďĞŝŶƚĞƌĞƐƚĞĚĨŽƌ
ĚŝīĞƌĞŶƚƌĞĂƐŽŶƐ͘
/ŚĂǀĞĚĞǀĞůŽƉĞĚĂŐŽĂůƐƟŵĞůŝŶĞĂŶĚŚĂǀĞĂŶŝĚĞĂŽĨƚŚĞ
ŽďƐƚĂĐůĞƐƚŚĂƚ/ŵŝŐŚƚĨĂĐĞĂƐ/ŵŽǀĞƚŽĐŽŵƉůĞƚĞŵLJŐŽĂůƐ͘
/ŚĂǀĞŝĚĞŶƟĮĞĚĂƌĞĂƐŽĨŵLJďƵƐŝŶĞƐƐƚŚĂƚ/ĐĂŶƚƌĂŝŶŽƚŚĞƌƐƚŽĚŽ
ĂƐ/ŐƌŽǁƚŚĞďƵƐŝŶĞƐƐĂŶĚƚĂŬĞŽŶŽƚŚĞƌƌŽůĞƐ͘
/ŬŶŽǁŚŽǁ/ĐĂŶƵƐĞƚŚĞƐĞƐŬŝůůƐŝŶŵLJĞǀĞƌLJĚĂLJůŝĨĞ͘

ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ | T hinking | 19

ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
20 | T hinking | ĞŝŶŐĂŶŶƚƌĞƉƌĞŶĞƵƌ
ZĞŇĞĐƟŽŶ͗ Being an Entrepreneur
/ŶƚŚŝƐĐŚĂƉƚĞƌ͕LJŽƵ͛ǀĞŚŽƉĞĨƵůůLJĚŝƐĐŽǀĞƌĞĚĂůŝƩůĞĂďŽƵƚǁŚĂƚŝƚǁŝůůďĞůŝŬĞƚŽďĞĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘
ĂŶLJŽƵƚŚŝŶŬŽĨĂƟŵĞǁŚĞŶLJŽƵŚĂǀĞĂůƌĞĂĚLJĞŶĐŽƵŶƚĞƌĞĚƚŚĞƚŚŝŶŬͲůĞĂƌŶͲĂĐƚƉƌŽĐĞƐƐ͍ Think
ĂďŽƵƚĂƟŵĞǁŚĞŶLJŽƵŵĂĚĞďŝŐƉůĂŶƐďƵƚůŝĨĞĚŝĚŶ͛ƚŐŽƚŚĞǁĂLJLJŽƵƚŚŽƵŐŚƚŝƚǁŽƵůĚͲͲŚŽǁĚŝĚ
LJŽƵƌĞĂĐƚĂŶĚƌĞǀŝƐĞLJŽƵƌƉůĂŶƐ͍dŚŝŶŬĂďŽƵƚĂƟŵĞǁŚĞŶLJŽƵĚŝĚŶ͛ƚŚĂǀĞĞŶŽƵŐŚƌĞƐŽƵƌĐĞƐďƵƚ
LJŽƵƐƟůůƚŽŽŬƚŚĞĮƌƐƚƐƚĞƉͲͲŚŽǁĚŝĚƚŚĂƚǁŽƌŬŽƵƚ͍
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>> Knowing
Myself

My Values

2
My Leadership Style
What is an Entrepreneur?
ďŽǀĞĂůů͕ƐƵĐĐĞƐƐĨƵůĞŶƚƌĞƉƌĞŶĞƵƌƐĂƌĞƐĞůĨͲĂǁĂƌĞ͘dŚŝƐĐŚĂƉƚĞƌŵĂLJŚĞůƉLJŽƵƚŽĂƐŬƋƵĞƐƟŽŶƐ
ĂďŽƵƚ LJŽƵƌƐĞůĨ ƚŚĂƚ LJŽƵ ŚĂǀĞ ŶŽƚ ŚĂĚ ƚŽ ĂƐŬ ďĞĨŽƌĞ Ͳ ƚĂŬĞ ĂĚǀĂŶƚĂŐĞ ŽĨ ƚŚŝƐ͊ ŚĂůůĞŶŐĞ
LJŽƵƌƐĞůĨ͊tŚĂƚĂƌĞLJŽƵƌǀĂůƵĞƐ͍tŚĂƚŝƐLJŽƵƌďĞŚĂǀŝŽƌĂůƐƚLJůĞ͍tŚĂƚĂƌĞLJŽƵƌƐƚƌĞŶŐƚŚƐĂŶĚ
ǁĞĂŬŶĞƐƐĞƐ͍zŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨLJŽƵƌŽǁŶŚŽŶĞƐƚĂŶƐǁĞƌƐƚŽƚŚĞƐĞƋƵĞƐƟŽŶƐĐĂŶŚĞůƉ
LJŽƵƚŽŶŽƚŽŶůLJĚĞǀĞůŽƉŐƌĞĂƚŝĚĞĂƐďƵƚƚŽŬŶŽǁLJŽƵƌďĞƐƚǁĂLJƚŽƉƵƚƚŚĞŵŝŶƚŽĂĐƟŽŶ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

ZĞŇĞĐƚ͗ƚŽƚŚŝŶŬĐĂƌĞĨƵůůLJĂďŽƵƚ Entrepreneurship: ĂǁĂLJŽĨ

ƉĂƐƚĞdžƉĞƌŝĞŶĐĞƐĂŶĚƉĞƌƐŽŶĂů ƚŚŝŶŬŝŶŐĂŶĚĂĐƟŶŐƚŚĂƚĨŽĐƵƐĞƐŽŶ
ŬŶŽǁůĞĚŐĞĂŶĚĐŽŶƐŝĚĞƌǁŚĂƚŚĂƐ ŝĚĞŶƟĨLJŝŶŐŽƉƉŽƌƚƵŶŝƟĞƐ͕ŝŶĨŽƌŵƐ
ďĞĞŶůĞĂƌŶĞĚ͘ ĂĐƟŽŶǁŝƚŚĂŶĂůLJƐŝƐ͕ĂŶĚŝƐĚƌŝǀĞŶďLJ
ĂƉĂƐƐŝŽŶĂƚĞŝŶĚŝǀŝĚƵĂůŽƌƚĞĂŵ͘
Core Value: ŬĞLJĐŽŶĐĞƉƚĂŶĚŝĚĞĂů
ƚŚĂƚŐƵŝĚĞƐĂƉĞƌƐŽŶ͛ƐůŝĨĞĂŶĚŚĞůƉƐ
Entrepreneur: ĂƉĞƌƐŽŶƚŚĂƚƵƟůŝnjĞƐ
ŚŝŵŽƌŚĞƌƚŽŵĂŬĞŝŵƉŽƌƚĂŶƚ
ƉƌŽďůĞŵͲƐŽůǀŝŶŐƚĞĐŚŶŝƋƵĞƐƚŽƐĞĞŬ
ĚĞĐŝƐŝŽŶƐ͘
ŽƵƚŶĞǁŽƉƉŽƌƚƵŶŝƟĞƐ͘
Self-Awareness: being able to
ƵŶĚĞƌƐƚĂŶĚĂŶĚƐĞůĨͲƌĞŐƵůĂƚĞLJŽƵƌ
ĞŵŽƟŽŶƐĂƐƚŚĞLJŽĐĐƵƌ͘
Personal Mission Statement: a
ƐŵĂůůƐĞƚŽĨŬĞLJĐŽŶĐĞƉƚƐĂŶĚŝĚĞĂůƐ
ƚŚĂƚŐƵŝĚĞĂƉĞƌƐŽŶ͛ƐůŝĨĞĂŶĚŚĞůƉ
ŚŝŵŽƌŚĞƌƚŽŵĂŬĞŝŵƉŽƌƚĂŶƚ
ĚĞĐŝƐŝŽŶƐ͘
Behavioral Style: ƚŚĞďĞŚĂǀŝŽƌƐLJŽƵ
ŶĂƚƵƌĂůůLJĞdžŚŝďŝƚǁŚŝůĞŝŶŇƵĞŶĐŝŶŐ
ŽƚŚĞƌƐ͘
 Lesson 2.1: My Values
ŽƌĞǀĂůƵĞƐĂƌĞƚŚŽƐĞƋƵĂůŝƟĞƐƚŚĂƚĂƌĞŵŽƐƚŝŵƉŽƌƚĂŶƚƚŽǁŚĂƚLJŽƵĚŽ͘tŚĞƚŚĞƌLJŽƵƌĞĂůŝnjĞŝƚŽƌŶŽƚ͕
ŝƚŝƐLJŽƵƌĐŽƌĞǀĂůƵĞƐƚŚĂƚŝŶŇƵĞŶĐĞƚŚĞĚĞĐŝƐŝŽŶƐƚŚĂƚLJŽƵŵĂŬĞĞǀĞƌLJĚĂLJ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵŚĂǀĞĂ
ĐŽƌĞǀĂůƵĞŽĨŝŶƚĞŐƌŝƚLJ͕ŝƚǁŝůůŝŶŇƵĞŶĐĞLJŽƵƌĚĞĐŝƐŝŽŶǁŚĞŶLJŽƵĂƌĞƉƌĞƐĞŶƚĞĚǁŝƚŚĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽ
ĐŽƉLJLJŽƵƌĨƌŝĞŶĚ͛ƐŚŽŵĞǁŽƌŬ͘zŽƵƌǀĂůƵĞŽĨŝŶƚĞŐƌŝƚLJǁŽƵůĚŵĂŬĞLJŽƵĐŚŽŽƐĞŶŽƚƚŽĐŚĞĂƚƚŚŝƐǁĂLJďƵƚ
ƚŽĐŚŽŽƐĞƚŽĐŽŵƉůĞƚĞLJŽƵƌŽǁŶǁŽƌŬ͕ĞǀĞŶƚŚŽƵŐŚLJŽƵŵŝŐŚƚŶŽƚƌĞĂůŝnjĞĞdžĂĐƚůLJǁŚLJLJŽƵǁŽƵůĚƐĂLJŶŽ͘
,ĂǀŝŶŐƚƌŽƵďůĞĚĞƚĞƌŵŝŶŝŶŐ
hŶĚĞƌƐƚĂŶĚŝŶŐǁŚLJLJŽƵĚŽƚŚĞƚŚŝŶŐƐLJŽƵĚŽĂŶĚǁŚLJLJŽƵǀĂůƵĞǁŚĂƚLJŽƵĚŽǁŝůůŚĞůƉLJŽƵƚŽƌĞĂůŝnjĞ LJŽƵƌƚŽƉƚĞŶ͍/ĚŝĚƚŽŽ͘,ĞƌĞ
ǁŚĂƚŵĂƩĞƌƐŵŽƐƚƚŽLJŽƵĂŶĚǁŚĂƚLJŽƵĐĂŶĂŶĚǁŝůůĚŽǁĞůů͘dŚŝƐŝƐŝŵƉŽƌƚĂŶƚŝŶĂůůĂƐƉĞĐƚƐŽĨLJŽƵƌůŝĨĞ͕ ĂƌĞƐŽŵĞƋƵĞƐƟŽŶƐƚŚĂƚŵŝŐŚƚ
ďƵƚƐƉĞĐŝĮĐĂůůLJŝŶƚŚŝƐŬ͕ŝƚǁŝůůŚĞůƉLJŽƵƌƐĞůĨͲĂǁĂƌĞŶĞƐƐ͕ĂŬĞLJĨĂĐƚŽƌŝŶĚĞǀĞůŽƉŝŶŐĂƐŵĂůůďƵƐŝŶĞƐƐ͘ ŚĞůƉLJŽƵƚŚŝŶŬĂďŽƵƚǁŚĂƚŝƐ
^ĞůĨͲĂǁĂƌĞŶĞƐƐĂŶĚƌĞŇĞĐƟŽŶǁŝůůďĞĐƌƵĐŝĂůĂƚĞǀĞƌLJƉŚĂƐĞŽĨLJŽƵƌĞŶƚƌĞƉƌĞŶĞƵƌŝĂůƉƌŽĐĞƐƐ͘ ƌĞĂůůLJŵŽƐƚŝŵƉŽƌƚĂŶƚƚŽLJŽƵ͘͘͘
ƚŚĂƚ͛ƐŚŽǁ/ŐŽƚŵŝŶĞ͊
/ŶƚŚĞĨŽůůŽǁŝŶŐĞdžĞƌĐŝƐĞLJŽƵǁŝůůďĞŐŝǀĞŶĂůŝƐƚŽĨŵĂŶLJĚŝīĞƌĞŶƚƚƌĂŝƚƐĂŶĚƋƵĂůŝƟĞƐƚŚĂƚĂƉĞƌƐŽŶŵĂLJ
ǀĂůƵĞ͘dŚŽƵŐŚLJŽƵŵĂLJĨĞĞůƐƚƌŽŶŐůLJĂďŽƵƚŵĂŶLJŽĨƚŚĞŵLJŽƵŵƵƐƚĐŚŽŽƐĞŽŶůLJƚĞŶƚŚĂƚLJŽƵĨĞĞůĂƌĞ tŚŽĚŽLJŽƵůŽŽŬƵƉƚŽ͍tŚLJ
ŵŽƐƚŝŵƉŽƌƚĂŶƚƚŽLJŽƵ͘,ĂǀŝŶŐƚŽŵĂŬĞƚŚŝƐĐŚŽŝĐĞŵĂLJŵĂŬĞLJŽƵĂƐŬLJŽƵƌƐĞůĨƋƵĞƐƟŽŶƐƚŚĂƚLJŽƵŚĂǀĞ ĚŽLJŽƵůŽŽŬƵƉƚŽƚŚĞŵ͍tŚĂƚ
ŶŽƚďĞĨŽƌĞʹƚŚŝƐŝƐŐƌĞĂƚ͊ŚĂůůĞŶŐŝŶŐLJŽƵƌƐĞůĨĂŶĚLJŽƵƌŝĚĞĂƐŝƐƚŚĞďĞƐƚǁĂLJĨŽƌLJŽƵƚŽƵŶĐŽǀĞƌLJŽƵƌ ŵŝŐŚƚƚŚĞŝƌĐŽƌĞǀĂůƵĞďĞ͍
ƚƌƵĞƐĞůĨ͘
tŚĂƚǁŽƵůĚLJŽƵƐǁŝŵĂĐƌŽƐƐ
ƚŚĞŽĐĞĂŶĨŽƌ͍ŶĞǁĨŽŽƚďĂůů͍
>ŽƚƐŽĨŵŽŶĞLJ͍/ĨLJŽƵĐŽƵůĚďĞ
Exercise 2.1: My Core Values ĂĐĞůĞďƌŝƚLJ͍&ŽƌLJŽƵƌĨĂŵŝůLJ͍

/ĨLJŽƵĐŽƵůĚƐƉĞŶĚŽŶĞĚĂLJ
ŝƌĐůĞƚŚĞƚĞŶǀĂůƵĞƐƚŚĂƚĂƌĞŵŽƐƚŝŵƉŽƌƚĂŶƚƚŽLJŽƵ͘ ĚŽŝŶŐĂŶLJƚŚŝŶŐ͕ǁŚĂƚǁŽƵůĚ
LJŽƵĚŽ͍tŚLJ͍
ĐĐŽŵƉůŝƐŚŵĞŶƚ ĸĐŝĞŶĐLJ /ŶƚƵŝƟŽŶ ZĂƟŽŶĂůŝƚLJ
dŚŝŶŬŽĨĂŶŽďũĞĐƚƚŚĂƚ
ĐĐŽƵŶƚĂďŝůŝƚLJ ŵƉŽǁĞƌŵĞŶƚ /ŶǀŽůǀĞŵĞŶƚ ZĞĐŽŐŶŝƟŽŶ ƌĞƉƌĞƐĞŶƚƐLJŽƵ͘͘͘ƉůĂŶƚ͕ĂŶŝŵĂů͕
ĨŽŽĚ͕Ŭ͍tŚĂƚĂďŽƵƚƚŚĂƚ
ĐĐƵƌĂĐLJ ƋƵĂůŝƚLJ :ŽLJ ZĞůŝĂďŝůŝƚLJ ŽďũĞĐƚŵĂŬĞƐŝƚƐƉĞĐŝĂů͍

ĐŚŝĞǀĞŵĞŶƚ džĐĞůůĞŶĐĞ :ƵƐƟĐĞ ZĞƐŽƵƌĐĞĨƵůŶĞƐƐ >ŽŽŬĨŽƌƚŚĞŵĞƐŝŶLJŽƵƌ

ĂŶƐǁĞƌƐĂŶĚƐĞĞŝĨƚŚĞLJŵĂƚĐŚ
ƚŚĞǁŽƌĚƐƚŽƚŚĞůĞŌ͊
ĚǀĞŶƚƵƌĞ džƉĞƌŝĞŶĐĞ <ŝŶĚŶĞƐƐ ZĞƐƉĞĐƚ
^ƟůůƐƚƵĐŬ͍ŝƐĐƵƐƐƚŚĞ
ƐƉŝƌĂƟŽŶ džƉƌĞƐƐŝŽŶ <ŶŽǁůĞĚŐĞ ZĞƐƉŽŶƐŝďŝůŝƚLJ
ƋƵĞƐƟŽŶƐĂďŽǀĞǁŝƚŚƐŽŵĞŽŶĞ
ĐůŽƐĞƚŽLJŽƵ͘
ƫƚƵĚĞ &ĂŝƌŶĞƐƐ >ĞĂĚĞƌƐŚŝƉ ZĞƐƉŽŶƐŝǀĞŶĞƐƐ

ƵƚŚĞŶƟĐŝƚLJ &ĂŝƚŚ >ĞĂƌŶŝŶŐ ZĞƐƵůƚƐͲŽƌŝĞŶƚĞĚ

ƵƚŚŽƌŝƚLJ &ĂŵĞ >ĞŝƐƵƌĞ ZŝƐŬͲƚĂŬŝŶŐ

ƵƚŽŶŽŵLJ &ĂŵŝůLJ >ŽǀĞ ^ĞĐƵƌŝƚLJ

ĞĂƵƚLJ &ůĂŝƌ >ŽLJĂůƚLJ ^ĞůĨͲƌĞůŝĂŶĐĞ

Challenge &ƌĞĞĚŽŵ DŽŶĞLJͬǁĞĂůƚŚ ^ĞƌǀŝĐĞ

Change &ƌĞĞǁŝůů EƵƌƚƵƌŝŶŐ ^ŝŵƉůŝĐŝƚLJ

Cleanliness &ƌŝĞŶĚƐŚŝƉ KƉĞŶŶĞƐƐ ^ŝŶĐĞƌŝƚLJ

ŽůůĂďŽƌĂƟŽŶ &ƵŶ KƉƉŽƌƚƵŶŝƚLJ ^Ŭŝůů

ŽŵŵŝƚŵĞŶƚ 'ĞŶĞƌŽƐŝƚLJ KƉƟŵŝƐŵ ^ƉŝƌŝƚƵĂůŝƚLJ

ŽŵŵƵŶŝĐĂƟŽŶ 'ŝǀŝŶŐͬĐŚĂƌŝƚLJ Passion ^ƚĂďŝůŝƚLJ

ŽŵŵƵŶŝƚLJ 'ůŽďĂůǀŝĞǁ WĂƚƌŝŽƟƐŵ ^ƚĂƚƵƐ

<ŶŽǁŝŶŐDLJƐĞůĨ | T hinking | 23

DLJĐŽƌĞǀĂůƵĞŝƐŬŶŽǁůĞĚŐĞ͘
zŽƵĐĂŶŐŽĂŶLJǁŚĞƌĞŽƌĚŽ
ĂŶLJƚŚŝŶŐŝĨLJŽƵƚĂŬĞƚŚĞƟŵĞ
ƚŽůĞĂƌŶĂďŽƵƚƚŚĞĨĂĐƚƐďĞĨŽƌĞ
LJŽƵƚƌLJ͘/ǀĂůƵĞŵĂŶLJŽƚŚĞƌ
ƚƌĂŝƚƐďƵƚŵLJŽƚŚĞƌŚŝŐŚƌĂŶŬŝŶŐ
ŽŶĞƐǁŽƵůĚďĞĐŽŵŵƵŶŝĐĂƟŽŶ͕
ĐŽůůĂďŽƌĂƟŽŶĂŶĚĞĚƵĐĂƟŽŶ͘/
think these traits are the basis
ŽĨĂŶLJƚŚŝŶŐĂƉĞƌƐŽŶĐŽƵůĚĞǀĞƌ
ǁĂŶƚƚŽĚŽ͊
DLJƐŝƐƚĞƌ͕DĂƌLJ͕ǀĂůƵĞƐ
ŝŵƉƌŽǀĞŵĞŶƚ͘tŚLJ͍ĞĐĂƵƐĞ
ƐŚĞǁĂŶƚƐƚŽĐŽŶƟŶƵĂůůLJǁŽƌŬ
ƚŽŝŵƉƌŽǀĞŚĞƌƐĞůĨĂŶĚƚŚŽƐĞ
ĂƌŽƵŶĚŚĞƌ͘,ĞƌƉĞƌƐŽŶĂů
ŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚŝƐƚŽ͞'Ž
ƚŽƐůĞĞƉĞǀĞƌLJŶŝŐŚƚŬŶŽǁŝŶŐ
/ŐĂǀĞŶŽƚŚŝŶŐůĞƐƐƚŚĂŶŵLJ
ďĞƐƚ͘͟
DLJĨƌŝĞŶĚ͕ďƌĂŚĂŵ͕ŵĂĚĞŚŝƐ
ĐŽƌĞǀĂůƵĞƐŝŶƚŽƚŚĞĨŽůůŽǁŝŶŐ
ŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚƐ͗
ĚǀĞŶƚƵƌĞƌͶdĂŬĞƌŝƐŬƐ͕
ĞdžƉůŽƌĞ͕ŐŽŽƵƚƐŝĚĞŵLJĐŽŵĨŽƌƚ
njŽŶĞ͊
ĞƚĞƌŵŝŶĞĚͶŽŶ͛ƚũƵƐƚĚƌĞĂŵ
ŝƚ͘͘͘ĚŽŝƚ͊
ŝƐĐŝƉůŝŶĞͶŽǁŚĂƚ/ĚŽǁĞůů͊
ƫƚƵĚĞͶƌŝŶŐĂƉŽƐŝƟǀĞ
ĂƫƚƵĚĞ͊
ŶĞƌŐLJͶ^ŚĂƌĞŵLJƉŽƐŝƟǀĞ
ĞŶĞƌŐLJǁŝƚŚŽƚŚĞƌƐ͊
24 | T hinking | <ŶŽǁŝŶŐDLJƐĞůĨ
EŽǁ͕ ŽŶĞ ďLJ ŽŶĞ͕ ĞůŝŵŝŶĂƚĞ ǀĂůƵĞƐ ĨƌŽŵ LJŽƵƌ ůŝƐƚ ƵŶƟů ƚŚĞƌĞ ŝƐ ŽŶůLJ ŽŶĞ ůĞŌͶƚŚĞ ǀĂůƵĞ ŵŽƐƚ
ŝŵƉŽƌƚĂŶƚƚŽLJŽƵ͘tŚLJĚŝĚLJŽƵĐŚŽŽƐĞƚŚŝƐǀĂůƵĞ͍
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EŽǁƚŚĂƚLJŽƵŚĂǀĞŝĚĞŶƟĮĞĚLJŽƵƌĐŽƌĞǀĂůƵĞ͕ůĞƚ͛ƐĞdžƉĂŶĚŽŶƚŚĂƚǀĂůƵĞƚŽĐƌĞĂƚĞĂƉĞƌƐŽŶĂůŵŝƐƐŝŽŶ
ƐƚĂƚĞŵĞŶƚ͘:ƵƐƚĂƐĂŶŽƌŵĂůďƵƐŝŶĞƐƐƚŚĂƚƐĞůůƐĂŐŽŽĚŽƌƐĞƌǀŝĐĞŚĂƐĂŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚĚĞĮŶŝŶŐƚŚĞ
ďƵƐŝŶĞƐƐ͛ƐǀŝƐŝŽŶ͕ĂƉĞƌƐŽŶĂůŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚŝƐLJŽƵƌǀŝƐŝŽŶŽŶŚŽǁLJŽƵǁĂŶƚƚŽůŝǀĞLJŽƵƌůŝĨĞ͘ƌĞĂƟŶŐ
ĂƉĞƌƐŽŶĂůŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚŝƐĂŐƌĞĂƚǁĂLJƚŽ͗
• &ŽƌĐĞLJŽƵƌƐĞůĨƚŽƚŚŝŶŬĚĞĞƉůLJĂďŽƵƚǁŚĂƚLJŽƵǀĂůƵĞĂŶĚŚŽǁLJŽƵǁĂŶƚƚŽůŝǀĞLJŽƵƌůŝĨĞ͘
• 'ŝǀĞLJŽƵƌƐĞůĨĂĨĞǁǁŽƌĚƐŽĨŝŶƐƉŝƌĂƟŽŶǁŚŝĐŚĐĂŶĞŵƉŽǁĞƌLJŽƵƚŽŐĞƚƚŚƌŽƵŐŚƚŚĞĚĂLJͶĞǀĞŶ
ŽŶƚŚĞǁŽƌƐƚĚĂLJƐ͘
• džƉůĂŝŶǁŚŽLJŽƵĂƌĞƚŽŽƚŚĞƌƐŝŶĂǀĞƌLJƐŚŽƌƚ͕ƐƵĐĐŝŶĐƚLJĞƚƉŽǁĞƌĨƵůǁĂLJ͘
• 'ŝǀĞLJŽƵƌƐĞůĨĂƌƵůĞƚŽůŝǀĞďLJǁŚĞŶŝƚĐŽŵĞƐƚŽŵĂŬŝŶŐĚŝĸĐƵůƚŽƌŝŵƉŽƌƚĂŶƚĚĞĐŝƐŝŽŶƐƐŽƚŚĂƚ
LJŽƵĚŽŶ͛ƚůŽƐĞƐŝŐŚƚŽĨǁŚĂƚLJŽƵƚƌƵůLJǀĂůƵĞ͘
Exercise 2.2: My Mission Statement
DŝƐƐŝŽŶ ƐƚĂƚĞŵĞŶƚƐ ĐĂŶ ďĞ ĂŶLJǁŚĞƌĞ ĨƌŽŵ ƚŚƌĞĞ ǁŽƌĚƐ ƚŽ ƚŚƌĞĞ ƐĞŶƚĞŶĐĞƐͶŚŽǁĞǀĞƌ ŵĂŶLJ
ǁŽƌĚƐ LJŽƵ ĨĞĞů LJŽƵ ŶĞĞĚ ƚŽ ƚƌƵůLJ ĐŽŶǀĞLJ LJŽƵƌ ůŝĨĞ ƉŚŝůŽƐŽƉŚLJ͘ dŽ ĐƌĞĂƚĞ Ă ŵŝƐƐŝŽŶ ƐƚĂƚĞŵĞŶƚ͕
ƐƚĂƌƚďLJĂƐŬŝŶŐLJŽƵƌƐĞůĨ͞ǁŚLJ͟LJŽƵƉŝĐŬĞĚƚŚĞĐŽƌĞǀĂůƵĞƚŚĂƚLJŽƵƉŝĐŬĞĚ͘ĂƐĞĚŽŶLJŽƵƌĂŶƐǁĞƌ͕
ĐƌĞĂƚĞĂ͞ƌƵůĞ͟ĨŽƌLJŽƵƌůŝĨĞ͘/ƚĚŽĞƐŶ͛ƚŶĞĞĚƚŽďĞƉĞƌĨĞĐƚƚŚĞĮƌƐƚƟŵĞLJŽƵǁƌŝƚĞŝƚĚŽǁŶ͘:ƵƐƚƉƵƚ
ŝƚĚŽǁŶŽŶƉĂƉĞƌĂŶĚƚŚĞŶƌĞǀŝĞǁ͕ĞĚŝƚ͕ĂŶĚƌĞĮŶĞLJŽƵƌŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚĞǀĞƌLJĚĂLJƵŶƟůLJŽƵ
ĐŽŵƉůĞƚĞƚŚŝƐŐƵŝĚĞ͘
tƌŝƚĞLJŽƵƌƉĞƌƐŽŶĂůŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚďĞůŽǁ͘
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 Lesson 2.2: My Leadership Style
ǀĞƌǁŽŶĚĞƌǁŚLJƐŽŵĞƉĞŽƉůĞĂƌĞǀĞƌLJŽƵƚŐŽŝŶŐǁŚŝůĞŽƚŚĞƌƐĂƌĞŵŽƌĞƌĞƐĞƌǀĞĚ͍KƌǁŚLJƐŽŵĞƉĞŽƉůĞ
ĂƌĞŽƌŐĂŶŝnjĞĚǁŚŝůĞŽƚŚĞƌƐĂƌĞĚŝƐŽƌŐĂŶŝnjĞĚ͍/ŶƚŚŝƐůĞƐƐŽŶ͕LJŽƵǁŝůůƚĂŬĞĂŶĂƐƐĞƐƐŵĞŶƚǁŚŝĐŚǁŝůůŚĞůƉ
LJŽƵƵŶĚĞƌƐƚĂŶĚǁŚLJƉĞŽƉůĞĂĐƚƚŚĞǁĂLJƚŚĞLJĚŽďLJĞdžĂŵŝŶŝŶŐĨŽƵƌĚŝīĞƌĞŶƚůĞĂĚĞƌƐŚŝƉƐƚLJůĞƐ͘ǀĞƌLJ
ďĞŚĂǀŝŽƌĂůƐƚLJůĞŚĂƐŝƚƐŽǁŶƚĞŶĚĞŶĐŝĞƐ͕ƐƚƌĞŶŐƚŚƐ͕ĂŶĚǁĞĂŬŶĞƐƐĞƐ͘hŶĚĞƌƐƚĂŶĚŝŶŐLJŽƵƌŽǁŶůĞĂĚĞƌƐŚŝƉ
ƐƚLJůĞĂŶĚƚŚĞůĞĂĚĞƌƐŚŝƉƐƚLJůĞŽĨŽƚŚĞƌƐŚĞůƉƐLJŽƵƚŽ͗

• hŶĚĞƌƐƚĂŶĚ͕ƌĞŐƵůĂƚĞ͕ĂŶĚĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌĞŵŽƟŽŶƐ
• ƵŝůĚŽŶLJŽƵƌƐƚƌĞŶŐƚŚƐĂŶĚďĞĂǁĂƌĞŽĨLJŽƵƌǁĞĂŬŶĞƐƐĞƐ
• tŽƌŬǁŝƚŚŽƚŚĞƌƐŵŽƌĞĞīĞĐƟǀĞůLJ

tŚŝůĞƚŚŝƐĂƐƐĞƐƐŵĞŶƚĐĂŶĚĞĞƉĞŶLJŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨǁŚŽLJŽƵĂƌĞ͕ŝƚĐĂŶŽŶůLJĚŽƐŽŝĨLJŽƵĂƌĞŚŽŶĞƐƚ
ǁŝƚŚLJŽƵƌƐĞůĨǁŚŝůĞĂŶƐǁĞƌŝŶŐƚŚĞƋƵĞƐƟŽŶƐ͘tŚŝůĞLJŽƵŵŝŐŚƚŶŽƚŝŶƚĞŶƟŽŶĂůůLJůŝĞĂďŽƵƚďĞŚĂǀŝŽƌƐLJŽƵ
ƚĞŶĚƚŽĞdžŚŝďŝƚ͕ŝƚĐĂŶďĞĞĂƐLJƚŽďĞĐŽŵĞĐŽŶĨƵƐĞĚŝŶƚǁŽǁĂLJƐ͗;ϭͿLJŽƵĐŽŶĨƵƐĞǁŚĂƚďĞŚĂǀŝŽƌƐLJŽƵ
ĞdžŚŝďŝƚǁŝƚŚďĞŚĂǀŝŽƌƐLJŽƵǁŝƐŚLJŽƵĞdžŚŝďŝƚĞĚ͖;ϮͿLJŽƵƌĞĂůŝnjĞƚŚĂƚLJŽƵďĞŚĂǀĞĚŝīĞƌĞŶƚůLJĚĞƉĞŶĚŝŶŐ
ŽŶǁŚŽŵLJŽƵĂƌĞǁŝƚŚ͕ǁŚĞƚŚĞƌŝƚďĞĨĂŵŝůLJ͕ĨƌŝĞŶĚƐ͕ŽƌŽƚŚĞƌƐƚƵĚĞŶƚƐ͘dŚĞƌĞŝƐŶŽĞĂƐLJǁĂLJƚŽĂǀŽŝĚ
ƚŚŝƐ ĐŽŶĨƵƐŝŽŶ͘ :ƵƐƚ ĚŽ LJŽƵƌ ďĞƐƚ ƚŽ ďĞ ŚŽŶĞƐƚ ǁŝƚŚ LJŽƵƌƐĞůĨ ĂŶĚ ƚŚŝŶŬ ĂďŽƵƚ ŚŽǁ LJŽƵ ďĞŚĂǀĞ ŵŽƐƚ
ŶĂƚƵƌĂůůLJ͘/ĨLJŽƵĂƌĞƐƚƌƵŐŐůŝŶŐǁŝƚŚƚŚĞƋƵĞƐƟŽŶƐŽŶƚŚĞĂƐƐĞƐƐŵĞŶƚĨĞĞůĨƌĞĞƚŽƚĂůŬƚŽƉĞŽƉůĞLJŽƵĂƌĞ
ĐůŽƐĞƚŽďƵƚƌĞŵĞŵďĞƌƚŚĂƚƵůƟŵĂƚĞůLJLJŽƵŬŶŽǁLJŽƵƌƐĞůĨďĞƐƚ͘dŚŝƐĂƐƐĞƐƐŵĞŶƚŝƐĚĞƐŝŐŶĞĚƚŽŚŝŐŚůŝŐŚƚ
LJŽƵƌƉƌĞĨĞƌĞŶĐĞƐͲLJŽƵƌƚĞŶĚĞŶĐŝĞƐĂŶĚŶĂƚƵƌĂůĐŚŽŝĐĞŽĨĂĐƟŽŶƐ͘dŚŝƐĚŽĞƐŶŽƚŵĞĂŶƚŚĂƚLJŽƵĐĂŶŶŽƚ
Ăƚ ĚŝīĞƌĞŶƚ ƟŵĞƐ ĞdžŚŝďŝƚ ƚŚĞ ƐƚLJůĞƐ ŚŝŐŚůŝŐŚĞĚ ŝŶ Ăůů ŽĨ ƚŚĞ ůĞĂĚĞƌƐŚŝƉ ƐƚLJůĞƐ ƚŚĂƚ ĂƌĞ ĚĞƐĐƌŝďĞĚ͘ &Žƌ
ĞdžĂŵƉůĞ͕ƚƌLJƚŚŝƐĞdžĞƌĐŝƐĞďĞůŽǁ͘

Exercise 2.3: Write Your Name

^ŝŐŶLJŽƵƌŶĂŵĞďĞůŽǁǁŝƚŚƚŚĞŚĂŶĚLJŽƵǁƌŝƚĞǁŝƚŚ͗

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EŽǁƐŝŐŶLJŽƵƌŶĂŵĞďĞůŽǁǁŝƚŚLJŽƵƌŽƚŚĞƌŚĂŶĚ͗

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,ŽǁĚŝĚƚŚĂƚĨĞĞů͍

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tŚĞŶLJŽƵƐŝŐŶĞĚLJŽƵƌŶĂŵĞǁŝƚŚLJŽƵƌǁƌŝƟŶŐŚĂŶĚŝƚůŝŬĞůLJĨĞůƚŵŽƌĞĐŽŵĨŽƌƚĂďůĞ͕ǁĂƐŵŽƌĞĞĸĐŝĞŶƚ͕
ŵĂĚĞLJŽƵƌŚĂŶĚǁƌŝƟŶŐůŽŽŬďĞƩĞƌ͕ĂŶĚĂůůŽǁĞĚLJŽƵƚŽŶŽƚŚĂǀĞƚŽĨŽĐƵƐĂƐŚĂƌĚ͘dŚĂƚŝƐĞdžĂĐƚůLJǁŚĂƚƚŚŝƐ
ůĞĂĚĞƌƐŚŝƉƐƚLJůĞĂƐƐĞƐƐŵĞŶƚŵĞĂƐƵƌĞƐͶLJŽƵƌƉƌĞĨĞƌĞŶĐĞƐ͘zŽƵĐĂŶǁƌŝƚĞǁŝƚŚďŽƚŚŚĂŶĚƐ͕ďƵƚĐŚĂŶĐĞƐ
ĂƌĞLJŽƵŶŽƌŵĂůůLJƉƌĞĨĞƌŽŶĞŚĂŶĚŽǀĞƌƚŚĞŽƚŚĞƌ͘:ƵƐƚďĞĐĂƵƐĞLJŽƵƐĂLJƚŚĂƚLJŽƵĂƌĞ͞ĚŝƐŽƌŐĂŶŝnjĞĚ͟ŽŶ
ƚŚĞĂƐƐĞƐƐŵĞŶƚĚŽĞƐŶ͛ƚŵĞĂŶƚŚĂƚLJŽƵĐĂŶ͛ƚďĞ͞ŽƌŐĂŶŝnjĞĚ͕͟ŝƚũƵƐƚŵĞĂŶƐƚŚĂƚLJŽƵŶĂƚƵƌĂůůLJƚĞŶĚƚŽďĞ
ŵŽƌĞĚŝƐŽƌŐĂŶŝnjĞĚ͘

<ŶŽǁŝŶŐDLJƐĞůĨ | T hinking | 25
 Exercise 2.4: How do you react?
dŚĞĨŽůůŽǁŝŶŐĞdžĞƌĐŝƐĞǁĂƐĚĞǀĞůŽƉĞĚƚŽŐŝǀĞLJŽƵĂŶŝĚĞĂŽĨLJŽƵƌƐƚLJůĞŽĨůĞĂĚĞƌƐŚŝƉĂŶĚƚĞĂŵǁŽƌŬ͘ZĞĂĚƚŚƌŽƵŐŚƚŚĞƐĐĞŶĂƌŝŽďĞůŽǁĂŶĚ
ƌĞƐƉŽŶĚƚŚĞǁĂLJLJŽƵǁŽƵůĚŝĨLJŽƵǁĞƌĞŝŶƚŚŝƐƐŝƚƵĂƟŽŶ͘ŝƌĐůĞƚŚĞĐŽƌƌĞƐƉŽŶĚŝŶŐĂŶƐǁĞƌ͘&ŽƌƚŚĞƚĞƐƚƚŽďĞŵŽƐƚĂĐĐƵƌĂƚĞLJŽƵŵƵƐƚďĞ
ĞdžƚƌĞŵĞůLJŚŽŶĞƐƚǁŝƚŚLJŽƵƌƐĞůĨ͊
zŽƵĂƌĞĂƚƚŚĞĂďƐŽŶŶƚƌĞƉƌĞŶĞƵƌŝĂů>ĞĂĚĞƌƐŚŝƉĐĂĚĞŵLJ͘
ƚƚŚĞĐĂĚĞŵLJLJŽƵǁŝůůǁŽƌŬǁŝƚŚƚĞĂŵƐƚŽĐƌĞĂƚĞĂďƵƐŝŶĞƐƐ
ŝĚĞĂ͘zŽƵĂƌĞƚĂƐŬĞĚǁŝƚŚďƌĂŝŶƐƚŽƌŵŝŶŐŝĚĞĂƐŽŶLJŽƵƌŽǁŶ
ƚŚĂƚLJŽƵǁŝůůŚĂǀĞƚŽƐŚĂƌĞǁŝƚŚŶĞǁƚĞĂŵŵĞŵďĞƌƐ͘ŌĞƌ
ďƌĂŝŶƐƚŽƌŵŝŶŐ͕LJŽƵŚĂǀĞĂŶŝĚĞĂƚŚĂƚLJŽƵƚŚŝŶŬĐŽƵůĚďĞǀĞƌLJ
ƐƵĐĐĞƐƐĨƵů͊
΀ϭ΁/ƚ͛ƐŶŽǁƟŵĞƚŽƐŚĂƌĞLJŽƵƌŝĚĞĂ͘/ŶƐŚĂƌŝŶŐƚŚĞŝĚĞĂƚŚĂƚ
LJŽƵĨĞĞůǁŝůůďĞǀĞƌLJƐƵĐĐĞƐƐĨƵůǁŝƚŚLJŽƵƌƚĞĂŵLJŽƵǁŝůů
;ϭͿĞdžƉƌĞƐƐLJŽƵƌĞŶĞƌŐLJƚŚƌŽƵŐŚŵŽǀŝŶŐĂƌŽƵŶĚĂŶĚĨĂĐŝĂů
ĞdžƉƌĞƐƐŝŽŶƐ͘
;ϮͿŬĞĞƉĐĂůŵĂŶĚĐŽŵƉŽƐĞĚ͘
΀Ϯ΁zŽƵĨĞĞůƐƚƌŽŶŐůLJĂďŽƵƚƚŚŝƐŝĚĞĂďĞĐĂƵƐĞLJŽƵŚĂǀĞ
ƐŝŐŶŝĮĐĂŶƚĞdžƉĞƌŝĞŶĐĞǁŝƚŚƚŚĞƐƵďũĞĐƚ͘dŽĐŽŶǀĞLJƚŚĂƚ͕LJŽƵ
share
;ϭͿƐƚŽƌŝĞƐĂŶĚĞdžƉĞƌŝĞŶĐĞƐƚŚĂƚLJŽƵŬŶŽǁƐƵƉƉŽƌƚƚŚĞŝĚĞĂ͘
;ϮͿĨĂĐƚƐĂŶĚĚĂƚĂƚŚĂƚLJŽƵŬŶŽǁƐƵƉƉŽƌƚƚŚĞŝĚĞĂ͘
΀ϭ΁zŽƵƌƚĞĂŵŵĂƚĞƐůŝŬĞLJŽƵƌŝĚĞĂ͊KŶĞŵĞŵďĞƌŝŶ
ƉĂƌƟĐƵůĂƌĨĞĞůƐǀĞƌLJƉĂƐƐŝŽŶĂƚĞůLJƚŚĂƚLJŽƵƌŝĚĞĂĐŽƵůĚďĞ
ƐƵĐĐĞƐƐĨƵůĂŶĚĂůƐŽŚĂƐĞdžƉĞƌŝĞŶĐĞŝŶƚŚŝƐĂƌĞĂ͘dŚĂƚƚĞĂŵ
ŵĞŵďĞƌŚĂƐŽīĞƌĞĚƚŽŵĂŶĂŐĞƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚŝƐ
ŝĚĞĂ͘zŽƵ
;ϭͿƌĞƐƉĞĐƞƵůůLJĚĞĐůŝŶĞƚŚĞƚĞĂŵŵĞŵďĞƌ͛ƐŽīĞƌďĞĐĂƵƐĞ
LJŽƵǁŝƐŚƚŽƚĂŬĞĐŚĂƌŐĞŽĨƚŚĞƉƌŽũĞĐƚ͘
;ϮͿǁĞůĐŽŵĞƚŚĞůĞĂĚĞƌƐŚŝƉĨƌŽŵLJŽƵƌƚĞĂŵŵĂƚĞĂŶĚůŽŽŬ
ĨŽƌǁĂƌĚƚŽƉĂƌƟĐŝƉĂƟŶŐŝŶƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶƵŶĚĞƌ
ƚŚĂƚƚĞĂŵŵĞŵďĞƌ͛ƐĚŝƌĞĐƟŽŶ͘
΀ϯ΁dŚĞƚĞĂŵŚĂƐŵŽǀĞĚŽŶƚŽŝŵƉůĞŵĞŶƚLJŽƵƌŝĚĞĂ͘dŚĞƌĞ
ĂƌĞŵĂŶLJƚĂƐŬƐƚŚĂƚŶĞĞĚƚŽďĞĐŽŵƉůĞƚĞĚƚŽĂĐĐŽŵƉůŝƐŚƚŚĞ
ŝŶŝƟĂůŝŵƉůĞŵĞŶƚĂƟŽŶ͘zŽƵǁŽƵůĚƉƌĞĨĞƌƚŽ
;ϭͿǁŽƌŬĂƐĂƚĞĂŵƚŽĐŽŵƉůĞƚĞĂůůŽĨƚŚĞƚĂƐŬƐƚŽŐĞƚŚĞƌ͘
;ϮͿďƌĞĂŬƵƉƚŚĞƚĂƐŬƐĂŶĚŚĂǀĞĞĂĐŚŵĞŵďĞƌŽĨƚŚĞƚĞĂŵ
ǁŽƌŬŝŶĚŝǀŝĚƵĂůůLJŽŶĂĐĐŽŵƉůŝƐŚŝŶŐĞĂĐŚƐƵďͲƚĂƐŬ͘
΀Ϯ΁dŚĞƚĞĂŵŶŽǁŶĞĞĚƐƚŽŵĂŬĞĐŚŽŝĐĞƐĂďŽƵƚƚŚĞ
ĚŝƌĞĐƟŽŶŽĨƚŚĞƉƌŽũĞĐƚ͘KŶĞƚĞĂŵŵĞŵďĞƌĨĞĞůƐƚŚĂƚƚŚĞ
ƚĞĂŵƐŚŽƵůĚƚĂŬĞĂƐůŝƩůĞƌŝƐŬĂƐƉŽƐƐŝďůĞ͕ĚŽŵŽƌĞƌĞƐĞĂƌĐŚ
ĂŶĚĐƌĞĂƚĞĂůŝƐƚŽĨƉŽƐƐŝďůĞŽƉƟŽŶƐďĞĨŽƌĞĚĞĐŝĚŝŶŐ͘ŶŽƚŚĞƌ
ŽĨLJŽƵƌƚĞĂŵŵĞŵďĞƌƐǁŽƵůĚƉƌĞĨĞƌƚŽďĞŐŝŶĂĐƟŶŐƌŝŐŚƚ
ĂǁĂLJǁŚŝĐŚŵĂLJŵĞĂŶƚĂŬŝŶŐŵŽƌĞƌŝƐŬƐ͘dŚĞLJŚĂǀĞĂƐŬĞĚ
LJŽƵƚŽƐŚĂƌĞLJŽƵƌŽƉŝŶŝŽŶŽŶƚŚĞďĞƐƚƉƌŽĐĞƐƐŵŽǀŝŶŐ
ĨŽƌǁĂƌĚ͘zŽƵƐŚĂƌĞƚŚĂƚLJŽƵĂƌĞŵŽƌĞŝŶƚĞƌĞƐƚĞĚŝŶ
;ϭͿďĞŐŝŶŶŝŶŐƌŝŐŚƚĂǁĂLJĂŶĚƚĂŬŝŶŐůĂƌŐĞƌƌŝƐŬƐƚŽůĞĂƌŶ
ƚŚƌŽƵŐŚƚƌŝĂůĂŶĚĞƌƌŽƌ͘
;ϮͿƐƉĞŶĚŝŶŐŵŽƌĞƟŵĞƉůĂŶŶŝŶŐĂŶĚĚĞǀĞůŽƉŝŶŐĂůŝƐƚŽĨ
ŽƉƟŽŶƐ͘
26 | T hinking | <ŶŽǁŝŶŐDLJƐĞůĨ
΀ϯ΁dŚĞƚĞĂŵŚĂƐďĞŐƵŶŝŵƉůĞŵĞŶƟŶŐƚŚĞƉƌŽũĞĐƚĂŶĚŚĂƐ
ĐŽŵĞĂĐƌŽƐƐƐŽŵĞĐŚĂůůĞŶŐĞƐ͘zŽƵĚŝƐĂŐƌĞĞǁŝƚŚĂƚĞĂŵ
ŵĞŵďĞƌ͘zŽƵ
;ϭͿƚĂůŬƚŽƚŚĞŵŽƉĞŶůLJĂďŽƵƚƚŚĞŝƐƐƵĞ͘
;ϮͿĂǀŽŝĚƚĂůŬŝŶŐƚŽƚŚĂƚƉĞƌƐŽŶĂďŽƵƚƚŚĞŝƐƐƵĞ͘
΀ϰ΁ŶŽƚŚĞƌŽĨLJŽƵƌƚĞĂŵŵĂƚĞƐǁŚŽǁĂƐŶŽƚŝŶǀŽůǀĞĚ
ŽďƐĞƌǀĞƐƚŚĞĚŝƐĂŐƌĞĞŵĞŶƚĂŶĚĂƐŬƐLJŽƵŚŽǁLJŽƵĨĞĞů͘zŽƵ
;ϭͿƐŚĂƌĞLJŽƵƌĨĞĞůŝŶŐƐǁŝƚŚƚŚĂƚƚĞĂŵŵĞŵďĞƌĂŶĚĂƌĞ
ŐƌĂƚĞĨƵůƚŽŚĂǀĞĂŶŽƵƚůĞƚ͘
;ϮͿďƌƵƐŚŝƚŽīĂŶĚŵĂŶĂŐĞLJŽƵƌĨĞĞůŝŶŐƐŝŶƐŝĚĞŽĨLJŽƵ͘
΀ϱ΁dŚĞƐĂŵĞƚĞĂŵŵĞŵďĞƌǁŚŽĂƐŬĞĚLJŽƵŚŽǁLJŽƵĨĞĞů
ƚƌŝĞƐƚŽŚĞůƉŵĞĚŝĂƚĞƚŚĞĐŽŶŇŝĐƚďĞƚǁĞĞŶLJŽƵĂŶĚƚŚĞŽƚŚĞƌ
ƚĞĂŵŵĞŵďĞƌ͘dŚĞLJďĞŐŝŶƚŽĂƐŬLJŽƵƚŽĞdžƉůĂŝŶLJŽƵƌƉŽƐŝƟŽŶ
ŽŶƚŚĞŝƐƐƵĞ͘zŽƵ
;ϭͿƚĞůůƚŚĞŐƌŽƵƉĞdžĂĐƚůLJŚŽǁLJŽƵĨĞĞů͘
;ϮͿƐŝƚƋƵŝĞƚůLJĂŶĚĐŚŽŽƐĞŶŽƚƚŽƐŚĂƌĞLJŽƵƌƚŚŽƵŐŚƚƐ͘
΀ϰ΁dŚĞƚĞĂŵŵĞŵďĞƌǁŝƚŚǁŚŽŵLJŽƵĚŝƐĂŐƌĞĞĚŚĂƐůĞŌƚŚĞ
ƚĞĂŵ͘/ŶƚŚĞŝƌƉůĂĐĞ͕ĂŶĞǁŵĞŵďĞƌŚĂƐďĞĞŶĂĚĚĞĚƚŽLJŽƵƌ
ƚĞĂŵ͘zŽƵ
;ϭͿĂƉƉƌŽĂĐŚƚŚĞŵƚŽŐĞƚƚŽŬŶŽǁƚŚĞŵĂŶĚƚŽŚĞůƉƚŚĞŵ
ŐĞƚĐĂƵŐŚƚƵƉŽŶƚŚĞƉƌŽũĞĐƚ͘
;ϮͿǁĂŝƚĨŽƌƚŚĞŵƚŽĂƉƉƌŽĂĐŚLJŽƵĂďŽƵƚĂŶLJƋƵĞƐƟŽŶƐƚŚĞLJ
ŚĂǀĞ͘
΀ϲ΁tŝƚŚƚŚĞŶĞǁƚĞĂŵŵĞŵďĞƌĐĂƵŐŚƚƵƉĂŶĚLJŽƵƌƉƌŽũĞĐƚ
ƵŶĚĞƌǁĂLJ͕ƚŚĞƚĞĂŵďĞŐŝŶƐƚŽũƵĚŐĞŚŽǁƐƵĐĐĞƐƐĨƵůƚŚĞ
ƉƌŽũĞĐƚŝƐ͘zŽƵƉƌĞĨĞƌƚŽũƵĚŐĞƚŚŝƐďĂƐĞĚŽŶ
;ϭͿƚŚĞƐƵĐĐĞƐƐďĂƐĞĚŽŶŚŽǁǁĞůůƚŚĞƚĞĂŵǁŽƌŬĞĚ
ƚŽŐĞƚŚĞƌ͘
;ϮͿŚŽǁŵĂŶLJƐĂůĞƐƚŚĞƚĞĂŵǁĂƐĂďůĞƚŽŵĂŬĞ͘
΀ϱ΁dŚĞƚĞĂŵĂŶĚLJŽƵƌďƵƐŝŶĞƐƐŚĂƐďĞĞŶƌĞĐŽŐŶŝnjĞĚďLJƚŚĞ
ĚŝƌĞĐƚŽƌƐŽĨƚŚĞĐĂĚĞŵLJĂƐĂŵŽĚĞůƉƌŽũĞĐƚ͘zŽƵ
;ϭͿĂƌĞĚŝƐĂƉƉŽŝŶƚĞĚƚŚĂƚĚŝƌĞĐƚŽƌƐĚŝĚŶŽƚƌĞĐŽŐŶŝnjĞLJŽƵ
ƉĞƌƐŽŶĂůůLJĨŽƌƚŚĞŽƌŝŐŝŶĂůŝĚĞĂ͘
;ϮͿĐŽŶŐƌĂƚƵůĂƚĞLJŽƵƌƚĞĂŵŵĞŵďĞƌƐĨŽƌŵĂŬŝŶŐƚŚĞ
ďƵƐŝŶĞƐƐǁŚĂƚŝƚŝƐƚŚƌŽƵŐŚĂůůŽĨƚŚĞŝƌĞīŽƌƚ͘
΀ϳ΁,ĂǀŝŶŐĐŽŵƉůĞƚĞĚƚŚĞƉƌŽũĞĐƚLJŽƵƌƚĞĂŵŵƵƐƚĮůůŽƵƚ
ƉĞĞƌĞǀĂůƵĂƟŽŶĨŽƌŵƐ͘zŽƵĞdžƉĞĐƚƚŚĂƚLJŽƵƌƚĞĂŵŵĞŵďĞƌƐ
ǁŝůůĚĞƐĐƌŝďĞLJŽƵĂƐ
;ϭͿƉůĂLJĨƵůĂŶĚĨƵŶůŽǀŝŶŐ͘
;ϮͿƐĞƌŝŽƵƐĂŶĚƚŚŽƵŐŚƞƵů͘
 EŽǁƚƌĂŶƐĨĞƌƚŚĞŶƵŵďĞƌLJŽƵĐŝƌĐůĞĚƚŽƚŚĞůŝŶĞƐƚŚĂƚĐŽƌƌĞƐƉŽŶĚƚŽƚŚĞƋƵĞƐƟŽŶŶƵŵďĞƌƐ
ůŝƐƚĞĚďĞůŽǁ͘dŚĞŶƚŽƚĂůĂůůŽĨƚŚĞŶƵŵďĞƌƐƚŽĂƌƌŝǀĞĂƚĂƚŽƚĂůĨŽƌYƵĞƐƟŽŶƐĂŶĚĂƚŽƚĂůĨŽƌ
YƵĞƐƟŽŶƐ͘

YƵĞƐƟŽŶƐ YƵĞƐƟŽŶƐ
[A1] [B1]

΀Ϯ΁ ΀Ϯ΁

[A3] [B3]

΀ϰ΁ ΀ϰ΁

΀ϱ΁ ΀ϱ΁

΀ϲ΁ TOTAL B:

[A7]

TOTAL A:

EŽǁŐƌĂƉŚƚŚĞŶƵŵďĞƌƐLJŽƵƌĞĐĞŝǀĞĚĨƌŽŵƚŚĞůĂƐƚƉĂŐĞƚŽƐĞĞǁŚĞƌĞLJŽƵĨĂůůŽŶƚŚĞ>ĞĂĚĞƌƐŚŝƉ^ƚLJůĞ
ŐƌĂƉŚ͘&ŝƌƐƚƐƚĂƌƚǁŝƚŚƚŚĞƚŽƚĂůLJŽƵƌĞĐĞŝǀĞĚĨŽƌƚŚĞ͞YƵĞƐƟŽŶƐ͟ĐŽůƵŵŶ͘/ĨƚŚĞƚŽƚĂůLJŽƵƌĞĐĞŝǀĞĚŝƐ
ďĞƚǁĞĞŶϳƚŽϭϬ͕ƚŚĞŶLJŽƵĂƌĞĞŝƚŚĞƌĂŶdžƉƌĞƐƐŝǀĞŽƌĂ^ƵƉƉŽƌƟǀĞ͘/ĨƚŚĞƚŽƚĂůLJŽƵƌĞĐĞŝǀĞĚŝƐďĞƚǁĞĞŶ
ϭϭƚŽϭϰ͕ƚŚĞŶLJŽƵĂƌĞĞŝƚŚĞƌĂƌŝǀĞƌŽƌĂŶŶĂůLJƟĐ͘dŚĞŶ͕ĮŶĚƚŚĞƚŽƚĂůLJŽƵĐĂůĐƵůĂƚĞĚĨŽƌƚŚĞ͞YƵĞƐƟŽŶƐ
͟ĐŽůƵŵŶ͘/ĨƚŚĞƚŽƚĂůLJŽƵƌĞĐĞŝǀĞĚŝƐďĞƚǁĞĞŶϱƚŽϳ͕ƚŚĞŶLJŽƵĂƌĞĞŝƚŚĞƌĂŶdžƉƌĞƐƐŝǀĞŽƌĂƌŝǀĞƌ͘/Ĩ
ƚŚĞƚŽƚĂůLJŽƵƌĞĐĞŝǀĞĚŝƐďĞƚǁĞĞŶϴƚŽϭϬ͕LJŽƵĂƌĞĞŝƚŚĞƌĂ^ƵƉƉŽƌƟǀĞŽƌŶĂůLJƟĐ͘hƐŝŶŐďŽƚŚLJŽƵƌ
dŽƚĂůĂŶĚLJŽƵƌdŽƚĂů͕ĮŐƵƌĞŽƵƚǁŚŝĐŚŽĨƚŚĞĨŽƵƌůĞĂĚĞƌƐŚŝƉƐƚLJůĞƐLJŽƵĨĂůůŝŶƚŽ͘ZĞĂĚĂďŽƵƚƚŚĞƚLJƉŝĐĂů
ĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽĨůĞĂĚĞƌƐǁŝƚŚLJŽƵƌƐƚLJůĞ͘

EKd͗ dŚŝƐ ĂŶĂůLJƐŝƐ ŽĨ ůĞĂĚĞƌƐŚŝƉ ƐƚLJůĞƐ ŝƐ ŶŽƚ ŝŶƚĞŶĚĞĚ ƚŽ ďĞ ƵƐĞĚ ĂƐ ĂŶ ĞdžĐƵƐĞ͘ &Žƌ ĞdžĂŵƉůĞ͕ ũƵƐƚ
ďĞĐĂƵƐĞLJŽƵĂƌĞĂƌŝǀĞƌĚŽĞƐŶ͛ƚŵĞĂŶŝƚŝƐŽŬĂLJĨŽƌLJŽƵƚŽďŽƐƐLJŽƵƌĨƌŝĞŶĚƐĂŶĚƐŝďůŝŶŐƐĂƌŽƵŶĚ͘dŚŝƐ
ĂŶĂůLJƐŝƐŝƐĂůƐŽŶŽƚŝŶƚĞŶĚĞĚƚŽƉƵƚLJŽƵŽƌŽƚŚĞƌƐŝŶ͞ĂďŽdž͘͟:ƵƐƚďĞĐĂƵƐĞLJŽƵŵĂLJďĞĂŶŶĂůLJƟĐ͕ĚŽĞƐŶ͛ƚ
ŵĞĂŶƚŚĞŽŶůLJƚŚŝŶŐLJŽƵĂƌĞŐŽŽĚĂƚŝƐĂĐĐŽƵŶƟŶŐ͘zŽƵĂƌĞĐĂƉĂďůĞŽĨĂŶLJƚŚŝŶŐĂŶLJŽŶĞĞůƐĞŝƐĐĂƉĂďůĞ
ŽĨŶŽŵĂƩĞƌǁŚĂƚLJŽƵƌůĞĂĚĞƌƐŚŝƉƐƚLJůĞ͊dŚŝƐŝƐƚƌƵĞŽĨŽƚŚĞƌƐĂƐǁĞůů͘ĞĐĂƌĞĨƵůŽĨĂƐƐƵŵŝŶŐƚŚĞƐƚLJůĞŽĨ
ƐŽŵĞŽŶĞĞůƐĞĂŶĚǁŚĂƚƚŚĞLJĂƌĞĐĂƉĂďůĞŽĨ͘WĞŽƉůĞŐƌŽǁĂŶĚĐŚĂŶŐĞĂŶĚŝƚŝƐŝŵƉŽƌƚĂŶƚLJŽƵŐŝǀĞƚŚĞŵ
ƚŚĞƐƉĂĐĞƚŽĚŽƚŚĂƚ͘

<ŶŽǁŝŶŐDLJƐĞůĨ | T hinking | 27
 Expressive ^ƵƉƉŽƌƟǀĞ
ƚŽƚĂůсϳƚŽϭϬ ƚŽƚĂůсϳƚŽϭϬ
B total = 5 to 7 ƚŽƚĂůсϴƚŽϭϬ
Focus: ŝĚĞĂ͕ĚƌĞĂŵ͕ĞŶĞƌŐLJ͕ĂŶĚǀŝƐŝŽŶ Focus: ƉĞŽƉůĞĂŶĚĨĞĞůŝŶŐƐ
Likes:ĂƉƉƌĞĐŝĂƟŽŶĂŶĚĂŝĚĨŽƌƚŚĞŝƌĚƌĞĂŵ Likes:ĨƌŝĞŶĚƐŚŝƉĂŶĚƌĞůĂƟŽŶƐŚŝƉƐ
Dislikes:ŝƐŽůĂƟŽŶ Dislikes: ĐŽŶŇŝĐƚ
Risk: ŽŌĞŶƚĂŬĞƐƌŝƐŬƐ Risk:ƚĞŶĚƐƚŽĂǀŽŝĚƚĂŬŝŶŐƌŝƐŬƐ
Approach to decision making:ŐƌĞĂƚůLJŝŶŇƵĞŶĐĞĚďLJƚĞƐƟŵŽŶŝĂůƐ Approach to making decision: ŶĞĞĚƐ ƐĂĨĞͲŐƵĂƌĂŶƚĞĞƐ ĂŶĚ
Approach to life:ƋƵŝĐŬĂŶĚŝŵƉƵůƐŝǀĞ ĐůĞĂƌƐƉĞĐŝĮĐƐŽůƵƟŽŶƐ
ƉƉƌŽĂĐŚƚŽĐŽŶŇŝĐƚ͗ĂƩĂĐŬƐƚŚĞŝƐƐƵĞ Approach to life: ƵŶŚƵƌƌŝĞĚ͕ƐůŽǁͲƉĂĐĞĚ͕ĂŐƌĞĞĂďůĞ
When working with a expressive͘͘͘ůŝƐƚĞŶƚŽƚŚĞŵĂŶĚƉƌĞƐĞŶƚ ƉƉƌŽĂĐŚƚŽĐŽŶŇŝĐƚ͗ĐŽŵƉůŝĞƐǁŝƚŚŽƵƚƉƌŽƚĞƐƚ
ƉŽƐŝƟǀĞĂůƚĞƌŶĂƟǀĞƐĂŶĚŝĚĞĂƐ tŚĞŶǁŽƌŬŝŶŐǁŝƚŚĂƐƵƉƉŽƌƟǀĞ͘͘͘ĂƐŬƚŚĞŵĨŽƌƚŚĞŝƌŽƉŝŶŝŽŶ
You will most enjoy͘͘͘ƚŚĞƚŚŝŶŬŝŶŐƐĞĐƟŽŶ ĂŶĚĐƌĞĂƚĞĂƐĂĨĞĞŶǀŝƌŽŶŵĞŶƚ͘
You will most enjoy͘͘͘ƚŚĞŵĂƌŬĞƟŶŐͬĐŽŵŵƵŶŝĐĂƟŽŶƐĞĐƟŽŶ
͘

Driver ŶĂůLJƟĐ
ƚŽƚĂůсϭϭƚŽϭϰ ƚŽƚĂůсϭϭƚŽϭϰ
B total = 5 to 7 ƚŽƚĂůсϴƚŽϭϬ
Focus:ƉƌŽĚƵĐƟǀŝƚLJ͕ĂĐƟŽŶ͕ƌĞƐƵůƚƐ͕ƐƚƌƵĐƚƵƌĞ Focus:ĨĂĐƚƐ͕ƉƌŝŶĐŝƉůĞƐ͕ƌƵůĞƐ
Likes:ĂĐĐŽŵƉůŝƐŚŝŶŐƚĂƐŬƐ Likes:ďĞƌŝŐŚƚ͕ƉƌĞĚŝĐƚĂďůĞƉĂƩĞƌŶƐ
Dislikes:ŶŽƚƚĂŬŝŶŐĂĐƟŽŶ Dislikes:ŝŶǀŽůǀĞŵĞŶƚ
Risk:ŽŌĞŶƚĂŬĞƐƌŝƐŬƐ Risk:ƚĞŶĚƐƚŽĂǀŽŝĚƚĂŬŝŶŐƌŝƐŬƐ
Approach to decision making: ŶĞĞĚƐ ƚŽ ƐĞĞ ŽƉƟŽŶƐ ĂŶĚ Approach to decision making:ŶĞĞĚƐĞǀŝĚĞŶĐĞĂŶĚƐĞĞĂŐŽŽĚ
ƉŽƐƐŝďŝůŝƟĞƐ ĨƵƚƵƌĞ
Approach to life:ĞĸĐŝĞŶƚ͖ĚŽŝƚŶŽǁ Approach to life: ĚŝƐĐŝƉůŝŶĞĚĂŶĚĂĐĐƵƌĂƚĞ
ƉƉƌŽĂĐŚƚŽĐŽŶŇŝĐƚ͗ǁŽƌŬƐŝŶĚĞƉĞŶĚĞŶƚůLJ ƉƉƌŽĂĐŚƚŽĐŽŶŇŝĐƚ͗ĂǀŽŝĚĞƌ
When working with a driver͘͘͘ĂǀŽŝĚŝŐŶŽƌŝŶŐŽƌĐŽŵƉĞƟŶŐǁŝƚŚ tŚĞŶ ǁŽƌŬŝŶŐ ǁŝƚŚ ĂŶ ĂŶĂůLJƟĐ͘͘͘ĂĚĚƌĞƐƐ ƉƌŽĐĞĚƵƌĞƐ͖ ĞŶůŝƐƚ
ĚƌŝǀĞƌƐ͖ĚŝƐƉůĂLJƌĞƐƵůƚƐ ƚŚĞŵŝŶƚŚĞƉůĂŶŶŝŶŐƉƌŽĐĞƐƐ
You will most enjoy.͘͘ƚŚĞĚŽŝŶŐƐĞĐƟŽŶ You will most enjoy͘͘͘ƚŚĞĂĐĐŽƵŶƟŶŐƐĞĐƟŽŶ

28 | T hinking | <ŶŽǁŝŶŐDLJƐĞůĨ
 Exercise 2.5: Strengths and Weaknesses DLJůĞĂĚĞƌƐŚŝƉƐƚLJůĞŝƐŵŽƐƚůLJ
^ƵƉƉŽƌƟǀĞ͘dŚĞƋƵĂůŝƟĞƐůŝƐƚĞĚ
ŌĞƌƌĞĂĚŝŶŐƚŚĞĚĞƐĐƌŝƉƟŽŶŽĨLJŽƵƌďĞŚĂǀŝŽƌĂůƐƚLJůĞ͕ĂŶƐǁĞƌƚŚĞƋƵĞƐƟŽŶƐďĞůŽǁ͘ ĚĞƐĐƌŝďĞŵĞĂƐ͞ĂƉĞŽƉůĞƉĞƌƐŽŶ͟
ĂŶĚƚŚĂƚ͛ƐƚƌƵĞ͘/ĚŽůŝŬĞƚŽďĞ
tŚĂƚŚĂǀĞLJŽƵůĞĂƌŶĞĚĂďŽƵƚLJŽƵƌƐĞůĨ͍ŽLJŽƵĂŐƌĞĞǁŝƚŚƚŚĞĚĞƐĐƌŝƉƟŽŶ͍ ĂƌŽƵŶĚŽƚŚĞƌƐďƵƚƐŽŵĞƟŵĞƐ/͛ŵ
ĂĨƌĂŝĚƚŽũƵŵƉŝŶƚŽĂĐŽŶǀĞƌƐĂƟŽŶ
_______________________________________ ǁŚĞŶŝƚůŽŽŬƐůŝŬĞĞǀĞƌLJŽŶĞďƵƚŵĞ
ŝƐĐŽŵĨŽƌƚĂďůĞ͘^ŝŶĐĞ/͛ǀĞůĞĂƌŶĞĚ
_______________________________________ ƚŚŝƐ͕/͛ǀĞƚĂƵŐŚƚŵLJƐĞůĨƚŽǀŽŝĐĞŵLJ
ƚŚŽƵŐŚƚƐŵŽƌĞĂŶĚŵĂŬĞƐƵƌĞƚŚĂƚ
_______________________________________ ƉĞŽƉůĞŚĞĂƌŵLJŝĚĞĂƐ͘

_______________________________________
_______________________________________
_______________________________________
/ŚĂǀĞĂŶdžƉƌĞƐƐŝǀĞ>ĞĂĚĞƌƐŚŝƉ
^ƚLJůĞ͊dŚŝƐŝƐŶ͛ƚƚŚĞĮƌƐƚƟŵĞ
tŚĂƚ ĂƌĞ ƐŽŵĞ ƐƚƌĞŶŐƚŚƐ ŽĨ LJŽƵƌ ďĞŚĂǀŝŽƌĂů ƐƚLJůĞ͍ Ž LJŽƵ ƚŚŝŶŬ ŝƚ ĐĂƉƚƵƌĞƐ ƐŽŵĞ ŽĨ LJŽƵƌ
/͛ǀĞďĞĞŶƚŽůĚ/͛ŵĂĚƌĞĂŵĞƌ
ƐƚƌĞŶŐƚŚƐ͍
ďƵƚ͕ǁŽǁ͕ĚŽ/ŚĂƚĞďĞŝŶŐďLJ
ŵLJƐĞůĨ͘/ůŽǀĞƚŽďĞĂďůĞƚŽƚĞůů
_______________________________________ ƐƚŽƌŝĞƐĂŶĚƉƌĞƚĞŶĚ͘^ŽŵĞƟŵĞƐ
/ĚŽũƵŵƉƚŽŽƋƵŝĐŬůLJŝŶƚŽ
_______________________________________ ŵLJŝĚĞĂƐ͕ǁŝƚŚŽƵƚƉůĂŶŶŝŶŐ
ĐĂƌĞĨƵůůLJ͘/ƚŚŝŶŬƚŚĂƚďĞŝŶŐ
_______________________________________ ĂǁĂƌĞŽĨƚŚŝƐǁŝůůŚĞůƉŵĞƚŽ
ŵĂŬĞƐƵƌĞƚŚĂƚ/ǁƌŝƚĞŵLJŝĚĞĂƐ
_______________________________________ ĚŽǁŶĮƌƐƚĂŶĚŐĞƚĂĚǀŝĐĞĨƌŽŵ
ŵLJĨƌŝĞŶĚƐďĞĨŽƌĞƚĂŬŝŶŐĂĐƟŽŶ͘
_______________________________________
_______________________________________
/͛ŵĂƌŝǀĞƌ͘/ƚ͛ƐŶŽƚŵLJĨĂƵůƚŝĨŶŽ
ŽŶĞĞůƐĞǁĂŶƚƐƚŽŵĂŬĞĂĚĞĐŝƐŝŽŶ͕
tŚĂƚ ĂƌĞ ƐŽŵĞ ǁĞĂŬŶĞƐƐĞƐ ŽĨ ƚŚĞ ďĞŚĂǀŝŽƌĂů ƐƚLJůĞ͍ ƌĞ ƚŚĞLJ LJŽƵƌ ǁĞĂŬŶĞƐƐĞƐ͍ /Ĩ LJŽƵ ǁĞƌĞ
ƌŝŐŚƚ͍/ĚŽƚĞŶĚƚŽĐŚŽŽƐĞǁŚĂƚ
ĐƌĞĂƟŶŐ Ă ƚĞĂŵ ƚŚĂƚ ǁĂƐ ǁĞůů ďĂůĂŶĐĞĚ͕ ǁŚĂƚ ŽƚŚĞƌ ďĞŚĂǀŝŽƌĂů ƐƚLJůĞ ŵŝŐŚƚ LJŽƵ ǁĂŶƚ LJŽƵƌ
ŵLJĨƌŝĞŶĚƐĂŶĚ/ǁŝůůĚŽǁŚĞŶǁĞ
ƚĞĂŵŵĂƚĞƚŽŚĂǀĞ͍
ĂƌĞƚŽŐĞƚŚĞƌ͘^ŽŵĞƟŵĞƐƚŚĞLJ
ŵĞŶƟŽŶƚŚĂƚƚŚĞLJƚŚŝŶŬ/ĂŵƚŽŽ
_______________________________________ ďŽƐƐLJƚŚŝƐǁĂLJƚŚŽƵŐŚ͘ĞŝŶŐĂďůĞ
ƚŽŶŽƟĐĞƚŚŝƐŝŶŵLJŝŶƚĞƌĂĐƟŽŶƐ
_______________________________________ ǁŝůůŵĂŬĞƐƵƌĞƚŚĂƚ/ĂŵĐĂƌĞĨƵůƚŽ
ŐĞƚŽƚŚĞƌƐ͛ŽƉŝŶŝŽŶƐďĞĨŽƌĞŵĂŬŝŶŐ
_______________________________________ ƚŚĞĐĂůůƐ͘
_______________________________________
_______________________________________
_______________________________________
/ĂŵĂŶĂůLJƟĐĂů͕ƐŽ͕LJĞƐ͕/ďĞůŝĞǀĞ/
_______________________________________ ĚŽŚĂǀĞĂŶŶĂůLJƟĐĂů>ĞĂĚĞƌƐŚŝƉ
^ƚLJůĞůŝŬĞƚŚŝƐĂƐƐĞƐƐŵĞŶƚƐĂLJƐ͘
_______________________________________ /ĚŽǀĞƌLJǁĞůůŝŶŵLJƵƐŝŶĞƐƐ
ĐĐŽƵŶƟŶŐĐŽƵƌƐĞĂŶĚ/ŚĂƚĞ
_______________________________________ ƚŽƚƵƌŶŵLJĂƐƐŝŐŶŵĞŶƚƐŝŶůĂƚĞ͘
^ŽŵĞƟŵĞƐǁŚĞŶ/ĚĞĚƵĐƚĂ
_______________________________________ ƐŽůƵƟŽŶĨƌŽŵƚŚĞĚĞƚĂŝůƐŽĨĂ
ƉƌŽďůĞŵ͕/ŚĂǀĞĂŚĂƌĚƟŵĞƐĞĞŝŶŐ
_______________________________________ ĂŶLJŽƚŚĞƌƐŽůƵƟŽŶƐ͘<ŶŽǁŝŶŐ
ƚŚŝƐŚĞůƉƐŵĞƚŽƌĞŵĞŵďĞƌƚŚĂƚ
_______________________________________ /ŶĞĞĚƚŽďƌĂŝŶƐƚŽƌŵĂůŽƚŽĨ
ĚŝīĞƌĞŶƚŝĚĞĂƐďĞĨŽƌĞĐŽŵŝŶŐƚŽĂ
_______________________________________ ĐŽŶĐůƵƐŝŽŶ͘

<ŶŽǁŝŶŐDLJƐĞůĨ | T hinking | 29
 Lesson 2.3: Am I an Entrepreneur?
Entrepreneurship ŝƐ Ă ǁĂLJ ŽĨ ƚŚŝŶŬŝŶŐ ĂŶĚ ĂĐƟŶŐ ƚŚĂƚ ĨŽĐƵƐĞƐ ŽŶ ŝĚĞŶƟĨLJŝŶŐ ŽƉƉŽƌƚƵŶŝƟĞƐ͕ ŝŶĨŽƌŵƐ
ĂĐƟŽŶǁŝƚŚĂŶĂůLJƐŝƐ͕ĂŶĚŝƐĚƌŝǀĞŶďLJĂƉĂƐƐŝŽŶĂƚĞŝŶĚŝǀŝĚƵĂůŽƌƚĞĂŵ͘dŚĞĞŶƚƌĞƉƌĞŶĞƵƌŝƐƚŚĂƚƉĂƐƐŝŽŶĂƚĞ
ŝŶĚŝǀŝĚƵĂůŽƌƉĂƌƚŽĨƚŚĂƚƚĞĂŵ͘ŶentrepreneurĐĂŶŚĂǀĞĂǀĂƌŝĞƚLJŽĨĐŽƌĞǀĂůƵĞƐĂŶĚŚĂǀĞĂŶLJŽĨƚŚĞ
ůĞĂĚĞƌƐŚŝƉƐƚLJůĞƐ͘dŚĞďĞƐƚƚŚŝŶŐĂŶĞŶƚƌĞƉƌĞŶĞƵƌĐĂŶĚŽŝƐƚŽďĞƐĞůĨĂǁĂƌĞŽĨŚŽǁƚŚĞLJŽƉĞƌĂƚĞďLJ
ƵŶĚĞƌƐƚĂŶĚŝŶŐƚŚĞŝƌƉĞƌƐŽŶĂůǀĂůƵĞƐĂŶĚƐƚLJůĞ͘ŶĞŶƚƌĞƉƌĞŶĞƵƌǁŝůůďĞĂďůĞƚŽůĞǀĞƌĂŐĞƚŚĞŝƌƐƚƌĞŶŐƚŚƐ
ĂŶĚĐŽŵƉĞŶƐĂƚĞĨŽƌƚŚĞŝƌǁĞĂŬŶĞƐƐĞƐďLJĞŝƚŚĞƌĐĂƌĞĨƵůŵŽĚĞƌĂƟŽŶŽƌĐŽŶƐƵůƟŶŐǁŝƚŚƉĞŽƉůĞƚŚĂƚĂƌĞ
ƐƚƌŽŶŐĞƌŝŶƚŚŽƐĞĂƌĞĂƐ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŚĂƚLJŽƵŬŶŽǁǁŚĂƚƚŚĞĞŶƚƌĞƉƌĞŶĞƵƌƚŚĂƚLJŽƵǁĂŶƚƚŽďĞůŽŽŬƐ
ůŝŬĞ ƐŽ ƚŚĂƚ LJŽƵ ĐĂŶ ƌĞĨĞƌĞŶĐĞ ƚŚŝƐ ůĂƚĞƌ ǁŚĞŶ LJŽƵ ŵĂLJ ďĞ ƋƵĞƐƟŽŶŝŶŐ LJŽƵƌƐĞůĨ͘ ĞůŽǁ LJŽƵ ŚĂǀĞ ƚŚĞ
ŽƉƉŽƌƚƵŶŝƚLJƚŽĚŽũƵƐƚƚŚĂƚ͘

Exercise 2.6: Draw an Entrepreneur

&ƌŽŵ ƚŚĞ ŽƵƚƐŝĚĞ͕ ŝƚ ŝƐ ĞĂƐLJ ƚŽ ƐƉŽƚ Ă ƐƵĐĐĞƐƐĨƵů ĞŶƚƌĞƉƌĞŶĞƵƌ ďĞĐĂƵƐĞ ŽĨ ƚŚĞ ďƵƐŝŶĞƐƐ ƚŚĞLJ
ŚĂǀĞďƵŝůƚĂƌŽƵŶĚƚŚĞŵƐĞůǀĞƐ͘ƵƚǁŚĂƚŝƐŐŽŝŶŐŽŶŝŶƐŝĚĞĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͍tŚĂƚŵĂŬĞƐƚŚĞŵ
ƐƵĐĐĞƐƐĨƵů͍tŚĂƚĚŽƚŚĞLJŚĂǀĞŝŶĐŽŵŵŽŶ͍hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽ͞ďƵŝůĚĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘͟
Ğ ĐƌĞĂƟǀĞ͊ zŽƵ ŵŝŐŚƚ ŝŶĐůƵĚĞ ƐŽŵĞƚŚŝŶŐ ƚŚĞLJ ǁŽƵůĚ ƐĂLJ͕ ƐŽŵĞƚŚŝŶŐ ƚŚĞLJ ǁŽƵůĚ ĚŽ͕ ŽďũĞĐƚƐ
ĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞŵ͕ŽƌƵƐĞĚŝīĞƌĞŶƚďŽĚLJƉĂƌƚƐƚŽƐLJŵďŽůŝnjĞĂďĞŚĂǀŝŽƌĂůĂƩƌŝďƵƚĞ͘ƌĂǁƚŚĞŝƌ
ƐƵƌƌŽƵŶĚŝŶŐƐ͕ĞŶǀŝƌŽŶŵĞŶƚ͕ŽƌĂŶLJƚŚŝŶŐLJŽƵƚŚŝŶŬƚŚĞĞŶƚƌĞƉƌĞŶĞƵƌŶĞĞĚƐƚŽďĞƐƵĐĐĞƐƐĨƵů͘tŚĂƚ
ĐŽƌĞǀĂůƵĞƐĚŽLJŽƵƚŚŝŶŬĂƌĞŝŵƉŽƌƚĂŶƚƚŽĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͍

&ŽƌŵLJĞŶƚƌĞƉƌĞŶĞƵƌ/ĚƌĞǁ͗
ŝŐďƌĂŝŶͶĐƵƌŝŽƵƐ͕ƉƌŽďůĞŵͲ
ƐŽůǀĞƌ͕ƐĞĞƐďŝŐͲƉŝĐƚƵƌĞ
ŝŐŚĞĂƌƚͶƉĂƐƐŝŽŶĂƚĞ͕ǁĂŶƚƐ
ƚŽŵŽǀĞĂŶĚƐŚĂŬĞƚŚĞǁŽƌůĚ͕
ŚŽƉĞĨƵů
ŝŐŚĂŶĚƐͶƐĞŝnjĞƐ
ŽƉƉŽƌƚƵŶŝƟĞƐ͕ŵŽƟǀĂƚĞĚ͕ǁŽƌŬƐ
ŚĂƌĚ
ŝŐĨĞĞƚͶĐĞŶƚĞƌĞĚ͕ƐĞůĨͲ
ĂƐƐƵƌĞĚ͕ĐŽŶĮĚĞŶƚ

tŚĂƚĂďŽƵƚLJŽƵƌƐ͍

30 | T hinking | <ŶŽǁŝŶŐDLJƐĞůĨ
 Exercise 2.7: ĞĮŶĞĂŶŶƚƌĞƉƌĞŶĞƵƌ
ŌĞƌ ƌĞŇĞĐƟŶŐ ŽŶ LJŽƵƌƐĞůĨ ĂƐ ĂŶ ŝŶĚŝǀŝĚƵĂů͕ ŶŽǁ ŝƚ͛Ɛ ƟŵĞ ƚŽ ƚŚŝŶŬ ĂďŽƵƚ LJŽƵƌƐĞůĨ ĂŶĚ LJŽƵƌ
ƉŽƚĞŶƟĂůĂƐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘ŶƐǁĞƌƚŚĞĨŽůůŽǁŝŶŐƋƵĞƐƟŽŶƐ͘

tŚĂƚŝƐLJŽƵƌƉĞƌƐŽŶĂůĚĞĮŶŝƟŽŶŽĨĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͍

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tŚĂƚ ĂƩƌŝďƵƚĞƐŽĨ ĂŶ ĞŶƚƌĞƉƌĞŶĞƵƌĚŽ LJŽƵ ƚŚŝŶŬ ĐŽŵĞŵŽƌĞŶĂƚƵƌĂůůLJ ƚŽ LJŽƵ͍ hƐĞLJŽƵƌ ĐŽƌĞ
ǀĂůƵĞƐĂŶĚďĞŚĂǀŝŽƌĂůƐƚLJůĞŝŶLJŽƵƌĂŶƐǁĞƌ͘

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tŚĂƚĚŽLJŽƵƐĞĞĂƐƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐƚŽďĞĐŽŵŝŶŐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͍tŚĂƚŝƐŚŽůĚŝŶŐLJŽƵďĂĐŬ͍
,ŽǁĐŽƵůĚLJŽƵŽǀĞƌĐŽŵĞƚŚĞƐĞŽďƐƚĂĐůĞƐ͍

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<ŶŽǁŝŶŐDLJƐĞůĨ | T hinking | 31

ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
32 | T hinking | <ŶŽǁŝŶŐDLJƐĞůĨ
ZĞŇĞĐƟŽŶ͗ Knowing Myself
/ŶƚŚŝƐĐŚĂƉƚĞƌ͕LJŽƵ͛ǀĞŚŽƉĞĨƵůůLJĚŝƐĐŽǀĞƌĞĚĂůŝƩůĞĂďŽƵƚǁŚŽLJŽƵĂƌĞĂŶĚǁŚĂƚLJŽƵƚŚŝŶŬŝƚƚĂŬĞƐ
ƚŽďĞĂƐƵĐĐĞƐƐĨƵůĞŶƚƌĞƉƌĞŶĞƵƌ͘hƐĞƚŚŝƐƐƉĂĐĞƚŽƌĞŇĞĐƚŽŶŚŽǁLJŽƵƌǀĂůƵĞƐĂŶĚƐŬŝůůƐŵŝŐŚƚŚĞůƉ
LJŽƵƚŽďĞĂƐƵĐĐĞƐƐĨƵůĞŶƚƌĞƉƌĞŶĞƵƌ͘ŽLJŽƵƐĞĞĂƌĞĂƐǁŚĞƌĞLJŽƵǁŝůůŶĞĞĚƚŽĂĐƋƵŝƌĞŶĞǁƐŬŝůůƐ
ŽƌŝŵƉƌŽǀĞLJŽƵƌƐĞůĨ͍ĞůŽǁ͕ƐƵŵŵĂƌŝnjĞƐŽŵĞŽĨƚŚĞŽƉƉŽƌƚƵŶŝƟĞƐLJŽƵƌƐŬŝůůƐĂŶĚƉĂƐƐŝŽŶƐŵĂLJ
ƉƌŽǀŝĚĞLJŽƵŝŶĚĞǀĞůŽƉŝŶŐĂďƵƐŝŶĞƐƐ͘
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>> F inding My
Passion

tŚĂƚŝƐWĂƐƐŝŽŶ͍

3
WĂƐƐŝŽŶĂŶĞ/ĚĞŶƟĮĞĚ
&ŝŶĚŝŶŐŵLJWĂƐƐŝŽŶ
WĂƐƐŝŽŶŝŶWƌĂĐƟĐĞ
EŽǁƚŚĂƚLJŽƵŚĂǀĞĂďĞƩĞƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨǁŚŽŵLJŽƵĂƌĞŽŶƚŚĞŝŶƐŝĚĞ͕ŝƚ͛ƐŝŵƉŽƌƚĂŶƚƚŽ
ƵŶĚĞƌƐƚĂŶĚŚŽǁLJŽƵŝŶƚĞƌĂĐƚǁŝƚŚƚŚĞŽƵƚƐŝĚĞǁŽƌůĚ͘,ŽǁĚŽLJŽƵĐŚŽŽƐĞƚŽƐƉĞŶĚLJŽƵƌĚĂLJ͍
tŚĂƚĂƌĞLJŽƵƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͍,ŽǁĐĂŶLJŽƵƵƐĞLJŽƵƌŬŶŽǁůĞĚŐĞƚŽĚĞǀĞůŽƉĂďƵƐŝŶĞƐƐ
ŽƉƉŽƌƚƵŶŝƚLJ͍

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Passion:tŚĂƚĚƌŝǀĞƐ͕ŵŽƟǀĂƚĞƐ͕
ĂŶĚĚĞĮŶĞƐǁŚĂƚLJŽƵĚŽ͘
Opportunity:ŶŝĚĞĂ͕ĂĐƟǀŝƚLJ͕Žƌ
ĞǀĞŶƚLJŽƵĐĂŶĐŚŽŽƐĞƚŽƉƵƌƐƵĞ͘
Commitment:ĐƟǀŝƚLJŽƌ
ƌĞƐƉŽŶƐŝďŝůŝƚLJLJŽƵĂƌĞƌĞƋƵŝƌĞĚƚŽ
ƉƵƌƐƵĞ͘
Balance:dŚĞŝŶƚĞƌƐĞĐƟŽŶďĞƚǁĞĞŶ
ŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚĐŽŵŵŝƚŵĞŶƚƐ͘
ůůŽǁƐŽŶĞƚŽďĞƌĞƐƉŽŶƐŝďůĞLJĞƚ
ŚĂǀĞƚŚĞŽƉƟŽŶƚŽƉĂƌƟĐŝƉĂƚĞŝŶ
ŽƚŚĞƌĂĐƟǀŝƟĞƐ͕ĞǀĞŶƚƐ͕ŽƌŝĚĞĂƐ͘
 Lesson 3.1: What is Passion?
WĂƐƐŝŽŶŝƐĂŶŝŶƚĞŶƐĞĚĞƐŝƌĞŽƌĞŶƚŚƵƐŝĂƐŵƚŚĂƚĚƌŝǀĞƐĂŶĚĚĞĮŶĞƐĂƉĞƌƐŽŶ͘/Ŷ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ͕LJŽƵƌ
ƉĂƐƐŝŽŶǁŝůůŚĞůƉLJŽƵŝĚĞŶƟĨLJĞŶƚƌĞƉƌĞŶĞƵƌŝĂůŽƉƉŽƌƚƵŶŝƟĞƐďĂƐĞĚŽŶƚŚĞƚŚŝŶŐƐƚŚĂƚLJŽƵŬŶŽǁĂŶĚůŽǀĞ͘

ǀĞƌLJŽŶĞŚĂƐƚŽŵĂŬĞŵŽŶĞLJƚŽƐƵƉƉŽƌƚƚŚĞŝƌůŝĨĞĂŶĚŵĂŶLJƉĞŽƉůĞĂĐĐŽŵƉůŝƐŚƚŚŝƐƚŚƌŽƵŐŚƐƚĂƌƟŶŐĂ
ďƵƐŝŶĞƐƐ͘ƵƚǁŚĂƚŬŝŶĚŽĨďƵƐŝŶĞƐƐĐĂŶƚŚĞLJƐƚĂƌƚ͍DĂŶLJƉĞŽƉůĞƐƚĂƌƚďƵƐŝŶĞƐƐĞƐďĂƐĞĚŽŶǁŚĂƚƚŚĞLJ
ŬŶŽǁŽƌĂƌĞǁŝůůŝŶŐƚŽůĞĂƌŶ͘dŚĂƚƚŚŝŶŐƚŚĞLJŬŶŽǁŽƌĂƌĞǁŝůůŝŶŐƚŽůĞĂƌŶ͕ŝŶŵĂŶLJĐĂƐĞƐ͕ŝƐƚŚĞŝƌƉĂƐƐŝŽŶ͘
tŚĞŶ ƐŽŵĞŽŶĞ ŚĂƐ Ă ƉĂƐƐŝŽŶ͕ ǁĞ ƐĂLJ ƚŚĞLJ ĂƌĞ ƉĂƐƐŝŽŶĂƚĞ͘ tĞ ďĞůŝĞǀĞ ƚŚŝƐ ŵŽƟǀĂƟŽŶ ŝƐ ŽŶĞ ŽĨ ƚŚĞ
ƉƌŝŵĂƌLJĨĂĐƚŽƌƐŽĨĂƐƵĐĐĞƐƐĨƵůĞŶƚƌĞƉƌĞŶĞƵƌ͘

WĞŽƉůĞĐĂŶďĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚĂůůŬŝŶĚƐŽĨƐƵďũĞĐƚƐĨƌŽŵůĞĂƌŶŝŶŐŝŶƐĐŚŽŽůƚŽŚĞůƉŝŶŐŽƚŚĞƌƐƚŽƐŽůǀŝŶŐ
ƉƌŽďůĞŵƐŽƌŐƌŽǁŝŶŐĨƌƵŝƚ͘ƉĞƌƐŽŶ͛ƐƉĂƐƐŝŽŶŝƐƐŽŵĞƚŚŝŶŐƚŚĂƚƚŚĞLJǁŽƵůĚŶ͛ƚǁĂŶƚƚŽůŝǀĞǁŝƚŚŽƵƚŝĨ
ƚŚĞLJŚĂĚĂĐŚŽŝĐĞ͘,ĂǀŝŶŐĂƉĂƐƐŝŽŶĨŽƌƚŚĞĂĐƟǀŝƟĞƐƚŚĂƚLJŽƵĚŽ͕ĐĂŶŚĞůƉLJŽƵĚŽƚŚĞŵďĞƩĞƌͲďĞĐĂƵƐĞ
LJŽƵ͛ƌĞŵŽƟǀĂƚĞĚ͘&ŽƌĞdžĂŵƉůĞ͕ĂƐƚƵĚĞŶƚŵĂLJďĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚůĞĂƌŶŝŶŐŵĂƚŚ͘/ĨƚŚĂƚƐƚƵĚĞŶƚŝƐĂďůĞ
ƚŽƵƐĞƚŚĂƚŬŶŽǁůĞĚŐĞĂŶĚŝŶƚĞƌĞƐƚƚŽďƵŝůĚŵŽƌĞŽŌĞŶŝŶƚŚĞŝƌůŝĨĞ͕ƚŚĞLJǁŝůůŵŽƐƚůŝŬĞůLJďĞŚĂƉƉŝĞƌĞĂĐŚ
ĚĂLJ͘dŚĞƐĂŵĞƐƚƵĚĞŶƚŵĂLJďĞůĞƐƐƉĂƐƐŝŽŶĂƚĞĂďŽƵƚůĞĂƌŶŝŶŐůĂŶŐƵĂŐĞƐ͕ďƵƚƐƟůůƐŬŝůůĞĚ͘DŽƌĞŽŌĞŶƚŚĂŶ
ŶŽƚ͕ƚŚĂƚƐƚƵĚĞŶƚǁŝůůďĞĂďĞƩĞƌƚƵƚŽƌŝŶŵĂƚŚ͕ƚŚĂŶůĂŶŐƵĂŐĞ͘dŚŝƐŝƐƚŚĞĐĂƐĞ͕ĞdžĐŝƚĞŵĞŶƚŝƐĐŽŶƚĂŐŝŽƵƐ͘
/ĨLJŽƵĐĂŶĮŶĚLJŽƵƌĞdžĐŝƚĞŵĞŶƚ͕LJŽƵƌƉĂƐƐŝŽŶ͕LJŽƵŵĂLJďĞĂďůĞƚŽƵƐĞƚŚĂƚƚŽďĞĐŽŵĞŵŽƌĞƐƵĐĐĞƐƐĨƵů
ĂŶĚŚĂƉƉLJƚŽŽ͘

KŌĞŶƉĞŽƉůĞĚŽƚŚŝŶŐƐŝŶůŝĨĞǁŝƚŚŽƵƚƉĂƐƐŝŽŶ͘^ŝŵƉůLJŐĞƚŝƚĚŽŶĞĨƌŽŵƚŚŽƐĞǁŚŽĞdžĐĞů͕ƚŚŽƐĞǁŚŽĞdžĐĞů
ĚŽŝƚǁŝƚŚƉĂƐƐŝŽŶ͘&ŽƌĞdžĂŵƉůĞ͕ƚŚĞƉƌŽĨĞƐƐŝŽŶĂůƐďĞůŽǁŵĂLJŚĂǀĞƚŚĞƉĂƐƐŝŽŶŽŶƚŚĞƌŝŐŚƚ͘

WƌŽĨĞƐƐŝŽŶĂů Possible Passion

EĞǁƐƉĂƉĞƌWƌŽĚƵĐĞƌ ĚŝƟŶŐ

ƌƟƐƚͬ'ĂůůĞƌLJKǁŶĞƌ WĂŝŶƟŶŐ

Math Teacher Math

ŽŵƉƵƚĞƌ^ĂůĞƐWĞƌƐŽŶ dĞĐŚŶŽůŽŐLJ

^ĞĂŵƐƚƌĞƐƐ Clothing

dŚĞƐĞƉƌŽĨĞƐƐŝŽŶĂůƐŵĂLJŚĂǀĞŽƚŚĞƌŽƌĚŝīĞƌĞŶƚƉĂƐƐŝŽŶƐƚŚĂƚĚƌŝǀĞƚŚĞŵƚŽĚŽǁŚĂƚƚŚĞLJĚŽ͘^ŽŵĞƟŵĞƐ͕
ĂƉĂƐƐŝŽŶĐĂŶďĞĂƐĂďƐƚƌĂĐƚ͕ĂŶĚŽŶůLJƚŚĞƉĞƌƐŽŶƉƵƌƐƵŝŶŐƚŚĂƚƉĂƐƐŝŽŶĐĂŶƐĞĞƚŚĞĐŽŶŶĞĐƟŽŶďĞƚǁĞĞŶ
ƚŚĞŝƌƉĂƐƐŝŽŶĂŶĚƚŚĞĂĐƟǀŝƟĞƐƚŚĞLJĚŽĚĂLJͲƚŽͲĚĂLJ͘WĂƐƐŝŽŶŝƐƉĞƌƐŽŶĂů͕ďƵƚŝŵƉŽƌƚĂŶƚĨŽƌLJŽƵƚŽŝĚĞŶƞŝLJ
ƐŽƚŚĂƚLJŽƵĐĂŶǁŽƌŬƚŽǁĂƌĚƐůŽǀŝŶŐǁŚĂƚLJŽƵ͛ƌĞĚŽŝŶŐĂŶĚĨĞĞůŝŶŐŐŽŽĚĂďŽƵƚŝƚ͘

Exercise 3.1: Passion in your Community

dŚŝŶŬĂďŽƵƚƉĞŽƉůĞLJŽƵŬŶŽǁǁŚŽLJŽƵďĞůŝĞǀĞƚŽďĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚǁŚĂƚƚŚĞLJĚŽ͘/ŶƚĞƌǀŝĞǁ
ĂƚůĞĂƐƚƚǁŽŽĨƚŚĞŵ͘dĂŬĞŶŽƚĞƐĂďŽƵƚŚŽǁƚŚĞLJĚĞƐĐƌŝďĞƚŚĞŝƌƉĂƐƐŝŽŶĂŶĚŚŽǁŝƚŝŶŇƵĞŶĐĞƐƚŚĞ
ǁŽƌŬƚŚĞLJĚŽ͘

1. _____________________________________
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2._____________________________________
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&ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ | T hinking | 35
 Lesson 3.2: WĂƐƐŝŽŶĂŶĞ/ĚĞŶƟĮĞĚ
/ƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ ƌĞĐŽŐŶŝnjĞ ŚŽǁ LJŽƵƌ ĚĂLJͲƚŽͲĚĂLJ ĞdžƉĞƌŝĞŶĐĞƐ͕ LJŽƵƌ ŬŶŽǁůĞĚŐĞ͕ ĂŶĚ ǁŚĂƚ LJŽƵ ĂƌĞ
ƉĂƐƐŝŽŶĂƚĞĂďŽƵƚĐĂŶŝŵƉĂĐƚǁŚŽLJŽƵĂƌĞĂƐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘ƵŝůĚŝŶŐĂďƵƐŝŶĞƐƐĂƌŽƵŶĚLJŽƵƌƉĂƐƐŝŽŶ
ŵĞĂŶƐƚŚĂƚLJŽƵĐĂŶƐŚĂƌĞƚŚĂƚƉĂƐƐŝŽŶǁŝƚŚŽƚŚĞƌƐ͕ĂŶĚďĞŚĂƉƉLJĂďŽƵƚƚŚĞǁŽƌŬƚŚĂƚLJŽƵĚŽ͘

zŽƵŬŶŽǁĂůŽƚĂŶĚĚŽĂůŽƚŽĨĚŝīĞƌĞŶƚƚŚŝŶŐƐ͕ƉƌŽďĂďůLJǁŝƚŚŽƵƚĞǀĞƌƌĞĂůŝnjŝŶŐŝƚ͘dŚĞĨŽůůŽǁŝŶŐĞdžĞƌĐŝƐĞƐ
ǁŝůů ŚĞůƉ LJŽƵ ƚŚŝŶŬ ĂďŽƵƚ ƚŚĞ ƚŚŝŶŐƐ LJŽƵ ĚŽ ĂŶĚ ŚŽǁ ƚŚĞLJ ĚĞĮŶĞ ǁŚŽ LJŽƵ ĂƌĞ͘ /ƚ ǁŝůů ĂůƐŽ ŚĞůƉ LJŽƵ
ŝĚĞŶƟĨLJƚŚŽƐĞƚŚŝŶŐƐƚŚĂƚLJŽƵůŽǀĞƚŽĚŽʹLJŽƵƌƉĂƐƐŝŽŶƐ͘

Exercise 3.2: A Week in the Life of Me

hƐŝŶŐƚŚĞďŽdžĞƐďĞůŽǁ͕ůŝƐƚƚŚĞĂĐƟǀŝƟĞƐLJŽƵƉĂƌƟĐŝƉĂƚĞĚŝŶŽǀĞƌƚŚĞƉĂƐƚǁĞĞŬ͘ŶĂĐƟǀŝƚLJŝƐ
ĂŶLJƚŚŝŶŐ LJŽƵ ƐƉĞŶĚ LJŽƵƌ ƟŵĞ ĚŽŝŶŐ͘ &Žƌ ĞdžĂŵƉůĞ͕ ĂĐƟǀŝƟĞƐ ŝŶĐůƵĚĞ ŐŽŝŶŐ ƚŽ ƐĐŚŽŽů͕ ƉůĂLJŝŶŐ͕
ƌĞĂĚŝŶŐ͕ĞƚĐ͘

ĂLJŽĨƚŚĞǁĞĞŬ ĐƟǀŝƟĞƐ

^ƵŶĚĂLJ

DŽŶĚĂLJ

dƵĞƐĚĂLJ

tĞĚŶĞƐĚĂLJ

dŚƵƌƐĚĂLJ

&ƌŝĚĂLJ

^ĂƚƵƌĚĂLJ

36 | T hinking | &ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ
/ƚ͛ƐŐƌĞĂƚƚŽŬŶŽǁǁŚĂƚLJŽƵƌƉĂƐƐŝŽŶƐĂƌĞďƵƚƌĞĂůůLJŝŵƉŽƌƚĂŶƚƚŽĐŽŶƟŶƵĞƚŽĞŶŐĂŐĞŝŶĂĐƟǀŝƟĞƐƚŚĂƚ
ǁŝůůŚĞůƉLJŽƵƚŽĚĞǀĞůŽƉLJŽƵƌƉĂƐƐŝŽŶƐŵŽƌĞ͘ƐĂƐƚƵĚĞŶƚ͕ƐŽŶŽƌĚĂƵŐŚƚĞƌĂŶĚĐŽŵŵƵŶŝƚLJŵĞŵďĞƌ
LJŽƵŚĂǀĞŵĂŶLJĐŽŵŵŝƚŵĞŶƚƐĂŶĚƌĞƐƉŽŶƐŝďŝůŝƟĞƐŝŶLJŽƵƌůŝĨĞ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŚĂƚLJŽƵŵĂŝŶƚĂŝŶƚŚŽƐĞ
ƌĞƐƉŽŶƐŝďŝůŝƟĞƐ͘/ƚŝƐLJŽƵƌĨƌĞĞƟŵĞƚŚĂƚLJŽƵĐĂŶĐŽŶƚƌŽůʹƚŚĞƟŵĞǁŚĞŶLJŽƵĂƌĞŶŽƚǁŽƌŬŝŶŐƚŽŬĞĞƉ
ƵƉǁŝƚŚƚŚŽƐĞĐŽŵŵŝƚŵĞŶƚƐĂŶĚƌĞƐƉŽŶƐŝďŝůŝƟĞƐ͘zŽƵŵƵƐƚĞdžĂŵŝŶĞŚŽǁLJŽƵƐƉĞŶĚLJŽƵƌĨƌĞĞƟŵĞ
ǁŚĞŶLJŽƵŚĂǀĞŽƉƟŽŶƐƚŽĐŚŽŽƐĞĚŝīĞƌĞŶƚƚŚŝŶŐƐ͘dŚĞĐĂůĞŶĚĂƌƚŚĂƚLJŽƵĮůůĞĚŽƵƚĂƚƚŚĞďĞŐŝŶŶŝŶŐ
ŽĨƚŚŝƐƐĞĐƟŽŶǁŝůůŚĞůƉLJŽƵƚŽƌĞĂůŝnjĞŚŽǁŵƵĐŚŽĨLJŽƵƌĨƌĞĞƟŵĞLJŽƵŵŝŐŚƚďĞĂďůĞƚŽĚĞĚŝĐĂƚĞƚŽ
ůĞĂƌŶŝŶŐŵŽƌĞĂďŽƵƚƚŚŽƐĞƚŚŝŶŐƐLJŽƵƚŚŝŶŬLJŽƵĂƌĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͘

Exercise 3.3: hƐŝŶŐDLJdŝŵĞtŝƐĞůLJ

ĂƐĞĚŽŶƚŚĞĐĂůĞŶĚĂƌĞdžĞƌĐŝƐĞ͕ĂŶƐǁĞƌƚŚĞĨŽůůŽǁŝŶŐƋƵĞƐƟŽŶƐ͘

tŚĂƚĂĐƟǀŝƚLJĚŝĚLJŽƵƐƉĞŶĚƚŚĞŵŽƐƚƟŵĞĚŽŝŶŐ͍

_______________________________________
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tĞƌĞLJŽƵƐƵƌƉƌŝƐĞĚĂƚŚŽǁŵƵĐŚ;ŽƌŚŽǁůŝƩůĞͿƟŵĞLJŽƵƐƉĞŶƚĚŽŝŶŐĐĞƌƚĂŝŶĂĐƟǀŝƟĞƐ͍tŚLJŽƌ
ǁŚLJŶŽƚ͍

_______________________________________ ,ĞƌĞ͛ƐŚŽǁ/ĨŽƵŶĚďĂůĂŶĐĞ͗
_______________________________________ ŌĞƌůŽŽŬŝŶŐĂƚŵLJĐĂůĞŶĚĂƌ/
ƌĞĂůŝnjĞĚƚŚĂƚ/ǁĂƐƉůĂLJŝŶŐǁŝƚŚ
_______________________________________ ŵLJĨƌŝĞŶĚƐŽŌĞŶĚƵƌŝŶŐŵLJ
ĚŽǁŶƟŵĞ͘ƐŵƵĐŚĂƐ/ůŝŬĞĂŶĚ
tŚĂƚĂƌĞƐŽŵĞŽĨƚŚĞƚŚŝŶŐƐLJŽƵĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌ͍dŚŝƐĐŽƵůĚďĞŚĞůƉŝŶŐLJŽƵƌĨĂŵŝůLJ͕ƚĂŬŝŶŐ ǁĂŶƚƚŽǁŽƌŬǁŝƚŚĐŽŵƉƵƚĞƌƐ͕
ĐĂƌĞŽĨƐŝďůŝŶŐƐ͕ĐůĞĂŶŝŶŐ͕ĞƚĐ͘ ĂůŵŽƐƚŶŽŶĞŽĨŵLJƟŵĞǁĂƐ
ƐƉĞŶƚǁŽƌŬŝŶŐŽŶƚŚĞŵŽƌ
_______________________________________ ůĞĂƌŶŝŶŐĂďŽƵƚƚŚĞŵ͘/ĚĞĐŝĚĞĚ
/ĐŽƵůĚĮŶĚďĞƩĞƌďĂůĂŶĐĞďLJ
_______________________________________ ƐƉĞŶĚŝŶŐŚĂůĨŽĨŵLJĚŽǁŶƟŵĞ
ƉůĂLJŝŶŐǁŝƚŚŵLJĨƌŝĞŶĚƐĂŶĚ
_______________________________________ ŚĂůĨŽĨŵLJƟŵĞƌĞĂĚŝŶŐĂďŽƵƚ
ĐŽŵƉƵƚĞƌƐĨƌŽŵƚŚĞůŝďƌĂƌLJŽƌďLJ
_______________________________________ ǀŝƐŝƟŶŐĂŶŝŶƚĞƌŶĞƚĐĂĨĞ͘

,ĞƌĞ͛ƐƚŚĞŐŽĂů͗ƚƌLJƚŽƵƐĞLJŽƵƌĚŽǁŶƟŵĞǁŝƐĞůLJƐŽƚŚĂƚLJŽƵĐĂŶĞdžƉůŽƌĞĂŶĚŝŵƉƌŽǀĞƚŚĞƐŬŝůůƐ
LJŽƵǁŝƐŚƚŽŽďƚĂŝŶ͘ŽLJŽƵĨĞĞůLJŽƵŚĂǀĞĂďĂůĂŶĐĞĚƐĐŚĞĚƵůĞ͍tŚĂƚĚŽLJŽƵƚŚŝŶŬLJŽƵĐŽƵůĚŐŝǀĞ
ƵƉƟŵĞĚŽŝŶŐ͕ŝĨĂŶLJƚŚŝŶŐ͕ƚŽĨŽĐƵƐŵŽƌĞŽŶLJŽƵƌƉĂƐƐŝŽŶƐ͍&ŝŶŝƐŚƚŚĞƐĞƐĞŶƚĞŶĐĞƐƚŽŚĞůƉLJŽƵ
ĚĞǀĞůŽƉŐŽĂůƐĂďŽƵƚƵƐŝŶŐLJŽƵƌƟŵĞ͊

/ĐƵƌƌĞŶƚůLJƐƉĞŶĚĂůŽƚŽĨƟŵĞ__________________________͘
/ǁŝƐŚ/ŬŶĞǁŵŽƌĞĂďŽƵƚ____________________________͘

/ǁŝƐŚ/ĐŽƵůĚ ___________________________ŵŽƌĞŽŌĞŶ͘

/ĐŽƵůĚƉƌŽďĂďůLJƐƚŽƉĚŽŝŶŐƐŽŵƵĐŚ________________________͘

EŽǁ͕ǁƌŝƚĞĚŽǁŶƚŚĞŐŽĂůƐLJŽƵŚĂǀĞĨŽƌLJŽƵƌƟŵĞďĂƐĞĚŽŶƚŚĞǁĂLJLJŽƵĮŶŝƐŚĞĚƚŚŽƐĞƐĞŶƚĞŶĐĞƐ͘

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&ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ | T hinking | 37
 Lesson 3.3: Finding my Passion
^ŽŵĞƟŵĞƐ LJŽƵƌ ƉĂƐƐŝŽŶ ĐĂŶ ďĞ ĞdžƉŽƐĞĚ ďLJ ƚŚŝŶŬŝŶŐ ĂďŽƵƚ ƋƵĞƐƟŽŶƐ Žƌ ĐŽŶĐĞƉƚƐ ƚŚĂƚ ĂƌĞŶ͛ƚ ĂƐŬĞĚ
ĞǀĞƌLJĚĂLJ͕ďLJƚŚŝŶŬŝŶŐĂďŽƵƚLJŽƵƌƉĂƐƚĂŶĚĚƌĞĂŵŝŶŐĂďŽƵƚLJŽƵƌĨƵƚƵƌĞ͘tĞƚŚŝŶŬĂďŽƵƚĂŶĚĚŽƚŚŝŶŐƐ
ĞǀĞƌLJĚĂLJƚŚĂƚǁĞĚŽŶ͛ƚŽŌĞŶƐƉĞŶĚƟŵĞĂŶĂůLJnjŝŶŐ͘/ĨǁĞƐƚŽƉƚŽƚŚŝŶŬĂďŽƵƚƚŚĞƐĞƚŚŝŶŐƐ͕ǁĞŵĂLJďĞ
ĂďůĞƚŽŝĚĞŶƟĨLJƚŚĞŵĞƐĂŶĚƉĂƩĞƌŶƐƚŚĂƚƉŽŝŶƚƚŽƐƉĞĐŝĮĐƉĂƐƐŝŽŶƐ͘

Exercise 3.4: Ask Myself...

ŶƐǁĞƌ ƚŚĞ ĨŽůůŽǁŝŶŐ ƋƵĞƐƟŽŶƐ ƚŽ ůĞĂƌŶ ƐŽŵĞ ŵŽƌĞ ĂďŽƵƚ LJŽƵƌƐĞůĨ͘ ƐŬŝŶŐ ƚŚĞƐĞ ƚŚĞŽƌĞƟĐĂů
ƋƵĞƐƟŽŶƐƐŽŵĞƟŵĞƐŵĂŬĞƐƉĞŽƉůĞƚŚŝŶŬŝŶǁĂLJƐƚŚĞLJŚĂǀĞŶŽƚďĞĨŽƌĞ͘

tŚĂƚǁĂƐLJŽƵƌĨĂǀŽƌŝƚĞƚŚŝŶŐƚŽĚŽǁŚĞŶLJŽƵǁĞƌĞĮǀĞLJĞĂƌƐŽůĚ͍

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tŚĂƚĚŽLJŽƵƚŚŝŶŬLJŽƵĂƌĞŐŽŽĚĂƚĚŽŝŶŐ͍

,ĂǀŝŶŐƚƌŽƵďůĞ͍dŚŝŶŬďĂĐŬ
ĂďŽƵƚĐŽƌĞǀĂůƵĞƐ͘KŌĞŶǁĞ
ĂƌĞŚĂƉƉŝĞƐƚǁŚĞŶŽƵƌĐŽƌĞ
ǀĂůƵĞƐĂŶĚǁŚĂƚǁĞĚŽĚĂLJͲƚŽͲ
ĚĂLJĂƌĞŝŶŚĂƌŵŽŶLJ͘
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/ĨLJŽƵĐŽƵůĚĐŚĂŶŐĞƚŚƌĞĞƚŚŝŶŐƐĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJŽƌƚŚĞǁŽƌůĚ͕ǁŚĂƚǁŽƵůĚƚŚĞLJďĞ͍

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/ŵĂŐŝŶĞLJŽƵƌƐĞůĨŝŶϮϬLJĞĂƌƐ͙tŚĞƌĞǁŝůůLJŽƵďĞ͍tŚĂƚǁŝůůLJŽƵďĞĚŽŝŶŐ͍

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38 | T hinking | &ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ
tŚĂƚŝƐLJŽƵƌĨĂǀŽƌŝƚĞƐƵďũĞĐƚŝŶƐĐŚŽŽů͍tŚĂƚĚŽLJŽƵůŝŬĞĂďŽƵƚŝƚ͍

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tŚŽĚŽ/ŵŽƐƚĂĚŵŝƌĞĂƐƌŽůĞŵŽĚĞůƐĂŶĚǁŚLJĚŽLJŽƵĂĚŵŝƌĞƚŚĞŵ͍

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/ĨLJŽƵĐŽƵůĚǀŝƐŝƚĂŶLJǁŚĞƌĞŝŶƚŚĞǁŽƌůĚ͕ǁŚĞƌĞǁŽƵůĚŝƚďĞĂŶĚǁŚLJ͍

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tŚĂƚƐŬŝůůƐĚŽLJŽƵŶĞĞĚƚŽďĞĐŽŵĞƚŚĞƉĞƌƐŽŶLJŽƵǁĂŶƚƚŽďĞ͍

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tŚĂƚŝƐLJŽƵƌĨĂǀŽƌŝƚĞƋƵĂůŝƚLJŽĨLJŽƵƌĐŽŵŵƵŶŝƚLJ͍

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tŚĂƚŝƐLJŽƵƌĨĂǀŽƌŝƚĞƉůĂĐĞƚŽǀŝƐŝƚĂŶĚǁŚLJ͍

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&ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ | T hinking | 39
 /ƚ͛ƐĐŽŵŵŽŶƚŚĂƚLJŽƵŵĂLJƌĞĂůŝnjĞLJŽƵŚĂǀĞŵƵůƟƉůĞƉĂƐƐŝŽŶƐ͕ĞǀĞŶƉĂƐƐŝŽŶƐƚŚĂƚĂƌĞŶŽƚƌĞůĂƚĞĚ͘dŚŝƐŝƐ
ƉĞƌĨĞĐƚůLJŶŽƌŵĂůͲŵŽƐƚƉĞŽƉůĞǁŝůůŚĂǀĞŵŽƌĞƚŚĂŶŽŶĞƉĂƐƐŝŽŶ͕ŵŽƌĞƚŚĂŶŽŶĞƚŚŝŶŐƚŚĂƚĚƌŝǀĞƐƚŚĞŵ͘

zŽƵŵĂLJƌĞĂůŝnjĞĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐĞdž͘ƚŚĂƚLJŽƵŚĂǀĞŵƵůƟƉůĞƉĂƐƐŝŽŶƐƚŚĂƚĚŽŶŽƚƐĞĞŵƌĞůĂƚĞĚ͘,ŽǁĞǀĞƌ͕
LJŽƵŵŝŐŚƚďĞĂďůĞƚŽĮŶĚĐŽŶŶĞĐƟŽŶƐďĞƚǁĞĞŶƚŚĞŵ͘ŝƚŝƐǁŚĞƌĞƚŚĞƐĞĐŽŶŶĞĐƟŽŶƐŽĐĐƵƌƚŚĂƚŚĞůƉLJŽƵ
ƚŽŝĚĞŶƟĨLJŚŽǁLJŽƵŵŝŐŚƚĂĐƚŽŶLJŽƵƌƉĂƐƐŝŽŶƐ͘

Exercise 3.5: Common Themes

ĞůŽǁ͕ůŝƐƚƚŚĞŵŽƐƚĐŽŵŵŽŶǁŽƌĚƐ;ŽƚŚĞƌƚŚĂŶĐŽŵŵŽŶǁŽƌĚƐůŝŬĞƚŚĞ͕Ă͕ŝƐ͕ŵĞ͕ĞƚĐ͘ͿŽƌƚŚĞŵĞƐ
ĨƌŽŵdžĞƌĐŝƐĞϯ͘ϯ͘dŚĞƐĞǁŽƌĚƐŵĂLJďĞĐŽŵƉůĞƚĞůLJƵŶƌĞůĂƚĞĚ

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ϭ͘͘

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dŚĞƐĞǁŽƌĚƐŵŝŐŚƚŚĞůƉLJŽƵƚŽŝĚĞŶƟĨLJƚŚĞƚŚŝŶŐƐƚŚĂƚƌĞĂůůLJŵĂƩĞƌƚŽLJŽƵ͘dŚŝŶŬĂďŽƵƚŚŽǁ
ƚŚĞƐĞƌĞůĂƚĞƚŽƚŚĞǁĂLJLJŽƵĂŶƐǁĞƌĞĚƚŚĞŽƚŚĞƌƋƵĞƐƟŽŶƐŝŶƚŚŝƐĐŚĂƉƚĞƌ͘dŚĞLJŵŝŐŚƚƚĞůůLJŽƵ
ƐŽŵĞƚŚŝŶŐĂďŽƵƚǁŚĂƚLJŽƵƌĞĂůůLJĨĞĞůƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͘tƌŝƚĞĂƐĞŶƚĞŶĐĞŽƌƚǁŽĂďŽƵƚƚŚĞ
ƉĂƐƐŝŽŶƐ͘

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Lesson 3.4: WĂƐƐŝŽŶŝŶWƌĂĐƟĐĞ

dŚŽƐĞǁŚŽƚƌƵůLJĞdžĐĞů͕ŽŌĞŶĮŶĚĂǁĂLJƚŽůŝŶŬƚŚĞŝƌƉĂƐƐŝŽŶǁŝƚŚǁŚĂƚƚŚĞLJĚŽŝŶƚŚĞŝƌůŝǀĞƐ͘tŚĂƚ
ĚŽĞƐƚŚĂƚŵĞĂŶĨŽƌLJŽƵ͍dŚĞďĞƐƚǁĂLJƚŽƚƌƵůLJĞdžĐĞůĂƚƐŽŵĞƚŚŝŶŐŝƐƚŽĮŶĚĂƉƌŽĨĞƐƐŝŽŶǁŚĞƌĞLJŽƵ
ĐĂŶƉƌĂĐƟĐĞLJŽƵƌƉĂƐƐŝŽŶĞǀĞƌLJĚĂLJ͘/ƚŵĂLJƚĂŬĞLJŽƵĂǁŚŝůĞ͕LJĞĂƌƐĞǀĞŶ͕ƚŽŐĂŝŶƚŚĞĞdžƉĞƌŝĞŶĐĞĂŶĚ
ďĂĐŬŐƌŽƵŶĚLJŽƵŶĞĞĚƚŽĚŽǁŚĂƚLJŽƵǁĂŶƚƚŽĚŽ͕ďƵƚŚĂǀŝŶŐĂŐŽĂůŝŶŵŝŶĚǁŝůůŚĞůƉLJŽƵƚŽƐŚĂƉĞLJŽƵƌ
ĂĐƟǀŝƟĞƐĞǀĞŶĞĂƌůLJŝŶLJŽƵƌůŝĨĞ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵǁĂŶƚƚŽďĞĂŵĂƚŚƚĞĂĐŚĞƌ͕LJŽƵĐĂŶ͛ƚďĞĐŽŵĞŽŶĞ
ƚŽŵŽƌƌŽǁďƵƚLJŽƵĐĂŶĚĞĐŝĚĞLJŽƵǁŝůůŐŽƚŽƵŶŝǀĞƌƐŝƚLJĂŶĚƚŚĂƚLJŽƵǁŝůůƉƵƌƐƵĞLJŽƵƌƉƵďůŝĐƐƉĞĂŬŝŶŐ
ƐŬŝůůƐ͘

/ƚ͛ƐŝŵƉŽƌƚĂŶƚƚŚĂƚLJŽƵĐŽŶƟŶƵĞƚŽƐĞĞŬŽƵƚŶĞǁŝŶƚĞƌĞƐƚƐĂŶĚŬĞĞƉůĞĂƌŶŝŶŐ͘tŚĂƚLJŽƵŚĂǀĞŝĚĞŶƟĮĞĚ
ĂƐLJŽƵƌƉĂƐƐŝŽŶƐŚŽƵůĚƐŚĂƉĞƚŚĞŽƉƉŽƌƚƵŶŝƟĞƐLJŽƵĐŚŽŽƐĞƚŽƉƵƌƐƵĞ͘tŚŝůĞǁĞĐĂŶ͛ƚĂůǁĂLJƐĚŽ
ƐŽŵĞƚŚŝŶŐǁĞůŽǀĞ͕ǁĞĐĂŶĮŶĚƐŽŵĞƚŚŝŶŐǁĞůŽǀĞŝŶĞǀĞƌLJƚŚŝŶŐǁĞĚŽ͘>ŽŽŬƐĨŽƌǁĂLJƐƚŽŝŶĨƵƐĞLJŽƵƌ
ĚĂŝůLJĂĐƟǀŝƟĞƐǁŝƚŚƚŚĞƉĂƐƐŝŽŶƐƚŚĂƚLJŽƵŚĂǀĞŝĚĞŶƟĮĞĚ͘

Exercise 3.6: ĐƟŶŐŽŶDLJWĂƐƐŝŽŶ

ĂŶLJŽƵƚŚŝŶŬŽĨƉƌŽĨĞƐƐŝŽŶƐǁŚĞƌĞLJŽƵŵŽƐƚŽĨĂůůŽĨƚŚĞƚŚĞŵĞƐLJŽƵŝĚĞŶƟĮĞĚĂďŽǀĞǁŽƵůĚďĞ
ƉƵƚŝŶƚŽƉƌĂĐƟĐĞ͍>ŝƐƚƚŚĞŵďĞůŽǁĂŶĚĐŽŵŵĞŶƚŽŶŚŽǁƚŚĞLJƌĞůĂƚĞƚŽLJŽƵƌƉĂƐƐŝŽŶ͘

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40 | T hinking | &ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ
 ZĞŇĞĐƟŽŶ͗ My Passion
ĞůŽǁ͕ ƐƵŵŵĂƌŝnjĞ ƐŽŵĞ ŽĨ ƚŚĞ ŽƉƉŽƌƚƵŶŝƟĞƐ LJŽƵƌ ƐŬŝůůƐ ĂŶĚ ƉĂƐƐŝŽŶƐ ŵĂLJ ƉƌŽǀŝĚĞ LJŽƵ ŝŶ
ĚĞǀĞůŽƉŝŶŐĂďƵƐŝŶĞƐƐ͘/ŶƚŚŝƐĐŚĂƉƚĞƌ͕LJŽƵ͛ǀĞŝĚĞŶƟĮĞĚƚŚĞƚŚŝŶŐƐƚŚĂƚLJŽƵĂƌĞŐŽŽĚĂƚĂŶĚƚŚĞ
ƚŚŝŶŐƐƚŚĂƚLJŽƵĂƌĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͘dŚŝŶŬďĂĐŬƚŽƚŚĞĐŽƌĞǀĂůƵĞƐLJŽƵŝĚĞŶƟĮĞĚŝŶŚĂƉƚĞƌϭ͘
ƌĞLJŽƵƌĐŽƌĞǀĂůƵĞƐĂŶĚƚŚĞƚŚŝŶŐƐLJŽƵůŝŬĞƚŽĚŽĐŽŶƐŝƐƚĞŶƚǁŝƚŚĞĂĐŚŽƚŚĞƌ͍

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ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
_______________________________________ ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
_______________________________________ ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
_______________________________________ ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
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&ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ | T hinking | 41
>> Building My
Network

/ĚĞŶƟĨLJŝŶŐDLJEĞƚǁŽƌŬ

4
hƐŝŶŐDLJEĞƚǁŽƌŬ
dĂůŬŝŶŐƚŽDLJEĞƚǁŽƌŬ
/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽůĞĂƌŶŚŽǁƚŽŝĚĞŶƟĨLJĂŶĞƚǁŽƌŬŽĨƉĞŽƉůĞĂŶĚƌĞƐŽƵƌĐĞƐǁŚŽĐĂŶŚĞůƉLJŽƵ
ƉƵƌƐƵĞŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚĮŶĚLJŽƵƌƉĂƐƐŝŽŶ͘zŽƵĐĂŶůĞĂƌŶƚŽĐƌĞĂƚĞƚŚĂƚŶĞƚǁŽƌŬƚŚƌŽƵŐŚ
ƚŚĞŵĂŶLJŝŶƚĞƌĂĐƟŽŶƐLJŽƵŚĂǀĞŽŶĂĚĂŝůLJďĂƐŝƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Networking Tree:ĚŝĂŐƌĂŵƚŚĂƚ
ĚŝƐƉůĂLJƐƚŚĞƌĞůĂƟŽŶƐŚŝƉƐŽĨƉĞŽƉůĞ
ĐŽŶŶĞĐƚĞĚƚŽLJŽƵ͘
Personal Pitch:ǁĂLJƚŽĐŽŶĐŝƐĞůLJ
ĞdžƉůĂŝŶǁŚŽLJŽƵĂƌĞĂŶĚǁŚĂƚLJŽƵ
ǀĂůƵĞƚŽƐŽŵĞŽŶĞĞůƐĞ͘
 Lesson 4.1: /ĚĞŶƟĨLJŝŶŐDLJEĞƚǁŽƌŬ
/ŶƚŚĞďƵƐŝŶĞƐƐǁŽƌůĚ͕ǁĞŽŌĞŶƌĞůLJŽŶĂƚĞĂŵŽĨƉĞŽƉůĞƚŽǁŽƌŬǁŝƚŚƵƐ͘tŚĞƚŚĞƌŝƚŝƐƚŽƐƵƉƉůLJƌĂǁ
ŵĂƚĞƌŝĂůƐĨŽƌŽƵƌƉƌŽĚƵĐƚƐ͕ǁŽƌŬŝŶŽƵƌďƵƐŝŶĞƐƐĞƐ͕ƉƵƌĐŚĂƐĞŽƵƌŐŽŽĚƐ͕ŽƌƐŝŵƉůLJŽīĞƌŝŶĚƵƐƚƌLJĂĚǀŝĐĞ
ͲǁĞŶĞĞĚŽƚŚĞƌƉĞŽƉůĞƚŽƉĂƌƟĐŝƉĂƚĞŝŶŽƵƌďƵƐŝŶĞƐƐƚŽďĞƐƵĐĐĞƐƐĨƵů͘LJĐƌĞĂƟŶŐĂ͞EĞƚǁŽƌŬŝŶŐdƌĞĞ͟
LJŽƵĐĂŶƐĞĞƚŚĞŝŵƉŽƌƚĂŶĐĞŽĨƚƌƵůLJƵŶĚĞƌƐƚĂŶĚŝŶŐŚŽǁƚŽŝĚĞŶƟĨLJ͞ǁŚŽŵ͟LJŽƵŬŶŽǁ͕ĂŶĚŚŽǁƚŚĞLJ
ĐĂŶŚĞůƉLJŽƵ͘

zŽƵƌŶĞƚǁŽƌŬĞŶĂďůĞƐLJŽƵƚŽŝĚĞŶƟĨLJƚŚŽƐĞƉĞŽƉůĞLJŽƵǁŽƵůĚŐŽƚŽĮƌƐƚǁŝƚŚĂŶŝĚĞĂ͕ƚŽƐĞĞŬƐƵƉƉŽƌƚ͕
ŽƌĨŽƌũƵƐƚĂďŽƵƚĂŶLJĂĚǀŝĐĞŽƌŚĞůƉ͘ZĞŵĞŵďĞƌƚŚĂƚLJŽƵƌŶĞƚǁŽƌŬǁŝůůƉƌŽďĂďůLJĐŚĂŶŐĞŽǀĞƌƟŵĞ͘/ƚǁŝůů
ŚŽƉĞĨƵůůLJŐƌŽǁĂŶĚLJŽƵǁŝůůŚĂǀĞĞǀĞŶŵŽƌĞƉĞŽƉůĞƚŽŚĞůƉĂŶĚƐƵƉƉŽƌƚLJŽƵ͘

zŽƵĂƌĞŝŶƚŚĞĐĞŶƚĞƌŽĨƚŚĞŶĞƚǁŽƌŬ͘tƌŝƚĞƚŚĞŶĂŵĞƐŽĨƚŚĞƉĞŽƉůĞƚŚĂƚLJŽƵŬŶŽǁǁĞůůĂƌŽƵŶĚLJŽƵ͘
dŚĞŶĂĚĚĂƌƌŽǁƐĂŶĚŶĂŵĞƐŽĨƉĞŽƉůĞǁŚŽƚŚĞƐĞƉĞŽƉůĞŬŶŽǁ͕ŽƌǁŚĂƚŝŶĚƵƐƚƌLJƚŚĞLJŵĂLJŬŶŽǁĂďŽƵƚ͘

MR. HOWA
business owner in
nearby city

SUPPLIERS
of his store
MARIE’S
PARENT
GRACE manager at the bank
starting the
business with
Samuel MANY
STUDENTS
also learning about
business
MARIE
^ĂŵƵĞů͛ƐŶĞƚǁŽƌŬƚƌĞĞŝƐ
a student starting a ƐƉĞĐŝĮĐƚŽĂŶŝĚĞĂĂďŽƵƚ
business ĐŽŵƉƵƚĞƌƐ͘/ĨŚĞƚĂƌŐĞƚĞĚ
ƚŚŝƐƚŽĂŶŽƚŚĞƌŝĚĞĂŚĞǁŽƵůĚ
ƉƌŽďĂďůLJŝŶĐůƵĚĞĚŝīĞƌĞŶƚ
ƉĞŽƉůĞĂŶĚƚŚĞŝƌĂĸůŝĂƟŽŶƐ͘

SAMUEL

MR. SMITH
owns a general store

MRS. JONES
school teacher and
well known in the
FRIEND
community
owns a small MANY PARENTS
business of students

TEACHERS
at the school where
she works

ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ| T hinking | 45
 Exercise 4.1: My Network Tree
hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽĚƌĂǁLJŽƵƌŽǁŶ͞EĞƚǁŽƌŬŝŶŐdƌĞĞ͘͟

/ŶƚŚĞƐƉĂĐĞƉƌŽǀŝĚĞĚďĞůŽǁ͕ǁƌŝƚĞĂŶLJŬĞLJŽďƐĞƌǀĂƟŽŶƐĂŶĚŝŶĨŽƌŵĂƟŽŶƚŚĂƚLJŽƵůĞĂƌŶĞĚĨƌŽŵ
ƚŚŝƐĞdžĞƌĐŝƐĞ͘

<ĞLJŽďƐĞƌǀĂƟŽŶƐ͕ŝŶĨŽƌŵĂƟŽŶ͕ŽƌƚŚŝŶŐƐƚŽƌĞŵĞŵďĞƌ͗

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46 | T hinking | Building My Network

 Lesson 4.2: hƐŝŶŐDLJEĞƚǁŽƌŬ
KŶĐĞ LJŽƵ ŬŶŽǁ ǁŚŽ ŝƐ ŝŶ LJŽƵƌ ŶĞƚǁŽƌŬ͕ LJŽƵ ŚĂǀĞ ƚŽ ďĞ ĂďůĞ ƚŽ ƵŶĚĞƌƐƚĂŶĚ ŚŽǁ ƚŚĞLJ ĐĂŶ ŚĞůƉ͊ &Žƌ
ĞdžĂŵƉůĞ͕ŝĨLJŽƵŶĞĞĚĞĚŚĞůƉƵŶĚĞƌƐƚĂŶĚŝŶŐĂŶĞǁůĂŶŐƵĂŐĞ͕LJŽƵǁŽƵůĚǁĂŶƚƚŽĂƉƉƌŽĂĐŚƐŽŵĞŽŶĞŝŶ
LJŽƵƌŶĞƚǁŽƌŬƚŚĂƚŚĂĚƐŬŝůůƐŝŶƚŚĂƚĂƌĞĂ͘hŶĚĞƌƐƚĂŶĚŝŶŐǁŚŽƚŽĂƉƉƌŽĂĐŚŝƐĂďŝŐƉĂƌƚŽĨƵŶĚĞƌƐƚĂŶĚŝŶŐ
LJŽƵƌŶĞƚǁŽƌŬ͘

ZĞŵĞŵďĞƌ͊zŽƵƐŚŽƵůĚďĞĂĚĚŝŶŐǀĂůƵĞƚŽLJŽƵƌƌĞůĂƟŽŶƐŚŝƉƐ͊zŽƵĚŽŶ͛ƚǁĂŶƚƚŽďĞƵƐŝŶŐLJŽƵƌĨƌŝĞŶĚƐ
ĨŽƌŚŽǁƚŚĞLJĐĂŶŚĞůƉLJŽƵͶLJŽƵǁĂŶƚƚŽŵĂŬĞƐƵƌĞLJŽƵĐĂŶŚĞůƉƚŚĞŵƚŽŽ͊<ĞĞƉƌĞĂĚŝŶŐ>ĞƐƐŽŶϰ͘ϮĨŽƌ
ŵŽƌĞŝŶĨŽƌŵĂƟŽŶ͊

^ĂŵƵĞůĂŶĚ'ƌĂĐĞ͛ƐĨƌŝĞŶĚƐĂƌĞŚŽƉŝŶŐƚŽƐƚĂƌƚĂƚƌĂƐŚƌĞŵŽǀĂůďƵƐŝŶĞƐƐŝŶƚŚĞŝƌĐŽŵŵƵŶŝƚLJ͘/ŶŽƌĚĞƌƚŽ
ĮŐƵƌĞŽƵƚǁŚŽƚŚĞLJĐŽƵůĚƚĂůŬƚŽ͕ƚŚĞLJŵĂĚĞĂůŝƐƚŽĨĨƌŝĞŶĚƐŝŶŶĞƚǁŽƌŬĂŶĚĂůŝƐƚŽĨƚŚĞŝƌďƵƐŝŶĞƐƐŶĞĞĚƐ͘
EŽǁƚŚĞLJŶĞĞĚƚŽĮŐƵƌĞŽƵƚǁŚŝĐŚŽĨƚŚĞĨƌŝĞŶĚƐŝŶƚŚĞŝƌŶĞƚǁŽƌŬǁŝůůďĞŵŽƐƚŚĞůƉĨƵůǁŝƚŚĞĂĐŚŶĞĞĚ͘

Friends in Network Business Needs

a. Marie, a friend also starting a a. Gaining an understanding of the
business using the From Ideas to market for trash pick up
Action Guide Book

b. John, a friend who’s parent has b. Help understanding a chapter of

experience in the trash removal From Ideas to Action
industry

c. Mr. Smith, a local business owner c. Finding customers

d. Mrs. Jones, a friend of Sam’s d. Gaining an understanding of the

mother’s who has many friends regulations around trash disposal
around the municipality

tŚĞŶƚŚŝŶŬŝŶŐĂďŽƵƚǁŚŽƚŽƚĂůŬƚŽ͕ŝƚŝƐĂůƐŽŝŵƉŽƌƚĂŶƚƚŽƚŚŝŶŬĂďŽƵƚǁŚĂƚLJŽƵĐĂŶŽīĞƌƚŚĂƚƉĞƌƐŽŶ
ŝŶĞdžĐŚĂŶŐĞĨŽƌƚŚĞŝƌŚĞůƉ͘DĂƌŝĞǁŽƵůĚƉƌŽďĂďůLJďĞƚŚĞďĞƐƚƉĞƌƐŽŶƚŽƚĂůŬƚŽĂďŽƵƚƵŶĚĞƌƐƚĂŶĚŝŶŐƚŚĞ
ĐŚĂƉƚĞƌŽĨ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ͘/ŶĞdžĐŚĂŶŐĞ͕ƚŚĞLJĐŽƵůĚŽīĞƌŚĞƌŚĞůƉǁŝƚŚůĞĂƌŶŝŶŐŚŽǁƚŽ/ŶĞdžĐŚĂŶŐĞ
ĨŽƌŚĞƌŚĞůƉ͕^Ăŵ͛ƐĨƌŝĞŶĚĐŽƵůĚŽīĞƌƚŽŚĞůƉŚĞƌǁŝƚŚĂƐƵďũĞĐƚƚŚĂƚƐŚĞĚŽĞƐŶ͛ƚƵŶĚĞƌƐƚĂŶĚĂƐǁĞůů͘:ŽŚŶ
ůŝŬĞůLJ ŚĂƐ ƚŚĞ ďĞƐƚ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƚŚĞ ƌĞŐƵůĂƟŽŶƐ ĂƌŽƵŶĚ ƚƌĂƐŚ ĚŝƐƉŽƐĂů ďĞĐĂƵƐĞ ŽĨ ŚŝƐ ĞdžƉĞƌŝĞŶĐĞ
ŝŶƚŚĞƚƌĂƐŚƌĞŵŽǀĂůŝŶĚƵƐƚƌLJ͘Dƌ͘^ŵŝƚŚŵŝŐŚƚďĞĂďůĞƚŽŚĞůƉŝŶŐĂŝŶŝŶŐĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐƚŚĞŵĂƌŬĞƚ
ĨŽƌƚƌĂƐŚƉŝĐŬƵƉƐŝŶĐĞŚĞŝƐĂůŽĐĂůďƵƐŝŶĞƐƐŽǁŶĞƌ͘/ŶĞdžĐŚĂŶŐĞĨŽƌŚŝƐŝŶƐŝŐŚƚ͕ƚŚĞƚĞĂŵĐŽƵůĚĂŐƌĞĞƚŽ
ďƵLJƚŚĞŝƌƐƵƉƉůŝĞƐĨŽƌŵŚŝƐŐĞŶĞƌĂůƐƚŽƌĞ͘DƌƐ͘:ŽŶĞƐŵĂLJďĞĂďůĞƚŽŚĞůƉŝŶĮŶĚŝŶŐĐƵƐƚŽŵĞƌƐƐŝŶĐĞƐŚĞ
ŬŶŽǁƐŵĂŶLJƉĞŽƉůĞƚŚƌŽƵŐŚŚĞƌũŽďƚĞĂĐŚŝŶŐĂƚƚŚĞƐĐŚŽŽů͘/ŶĞdžĐŚĂŶŐĞ͕ƚŚĞƚĞĂŵĐŽƵůĚƉƌŽŵŝƐĞƚŽŐŝǀĞ
ŚĞƌĂĚŝƐĐŽƵŶƚĨŽƌƚŚĞŝƌƚƌĂƐŚƌĞŵŽǀĂůƐĞƌǀŝĐĞƐ͘

Lesson 4.3: Talking to My Network

ƚƚŚĞĞŶĚŽĨƚŚŝƐƐĞĐƟŽŶ͕LJŽƵǁŝůůďĞďĞƩĞƌĞƋƵŝƉƉĞĚƚŽƚĂůŬĂďŽƵƚLJŽƵƌƐŬŝůůƐ͕ŝĚĞĂƐ͕ĂŶĚLJŽƵƌƉĂƐƐŝŽŶƐ͘
dŚŝƐ ǁŝůů ďĞ ĞdžƚƌĞŵĞůLJ ŚĞůƉĨƵů ŝŶ ƌĞůĂƟŽŶƐŚŝƉ ďƵŝůĚŝŶŐ͕ ďŽƚŚ ďƵƐŝŶĞƐƐ ĂŶĚ ƉĞƌƐŽŶĂů͘ dŽ ĮŶĞ ƚƵŶĞ ƚŚŝƐ
ƐŬŝůů͕LJŽƵĐĂŶĚĞǀĞůŽƉǁŚĂƚŝƐĐĂůůĞĚĂƉĞƌƐŽŶĂůƉŝƚĐŚ͘dŚŝƐŝƐĂƉƌĂĐƟĐĞĚƐƉĞĞĐŚĂďŽƵƚLJŽƵƌƐĞůĨƚŚĂƚŝƐŶŽ
ůŽŶŐĞƌƚŚĂŶƚŚƌĞĞŵŝŶƵƚĞƐĂŶĚƚŚĂƚŝŶĐůƵĚĞƐLJŽƵƌŶĂŵĞ͕ǁŚĂƚLJŽƵĂƌĞĚŽŝŶŐ͕ĂŶĚǁŚĂƚLJŽƵǁŽƵůĚůŝŬĞ
ƚŽĚŽŝŶƌĞůĂƟŽŶƐŚŝƉƚŽLJŽƵƌƐŬŝůůƐ͕ƉĂƐƐŝŽŶƐ͕ĂŶĚĐŽƌĞǀĂůƵĞƐ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵĂĐĐŝĚĞŶƚůLJĞŶĚƵƉŝŶĂ
ƚĂdžŝǁŝƚŚĂƉĞƌƐŽŶǁŚŽŽǁŶƐĂďƵƐŝŶĞƐƐƚŚĂƚLJŽƵǁŽƵůĚůŝŬĞƚŽǁŽƌŬĨŽƌ͕ŚĂǀŝŶŐĂƉƌĂĐƟĐĞĚƐƉĞĞĐŚƐƵĐŚ
ĂƐƚŚŝƐǁŝůůŐŝǀĞLJŽƵĂŶĂĚǀĂŶƚĂŐĞŝŶƚŚĞĐŽŶǀĞƌƐĂƟŽŶ͘

ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ| T hinking | 47

DĂŬĞƐƵƌĞLJŽƵƌƉĞƌƐŽŶĂůƉŝƚĐŚ
ŝƐĂůǁĂLJƐƵƉƚŽĚĂƚĞďĞĐĂƵƐĞ
LJŽƵĂƌĞĂůǁĂLJƐůĞĂƌŶŝŶŐŶĞǁ
ƐŬŝůůƐƚŚĂƚLJŽƵǁŝůůǁĂŶƚƚŽ
ƐŚĂƌĞ͊
48 | T hinking | Building My Network
Exercise 4.2: Your Personal Pitch
hƐĞ ƚŚŝƐ ƐƉĂĐĞ ƚŽ ǁƌŝƚĞ ĂŶ ŽƵƚůŝŶĞ ĨŽƌ LJŽƵƌ ƚŚƌĞĞ ŵŝŶƵƚĞ ƉĞƌƐŽŶĂů ƉŝƚĐŚ͘ dŚŝƐ ŽƵƚůŝŶĞ ƐŚŽƵůĚ
ŝĚĞŶƟĨLJƚŚŽƐĞƉŽŝŶƚƐĂďŽƵƚLJŽƵƌƐĞůĨƚŚĂƚLJŽƵƚŚŝŶŬǁŽƵůĚďĞŝŵƉŽƌƚĂŶƚĨŽƌƐŽŵĞŽŶĞũƵƐƚŵĞĞƟŶŐ
LJŽƵƚŽŬŶŽǁ͘ZĞŵĞŵďĞƌ͕ƚŚŝƐƐŚŽƵůĚŝŶĐůƵĚĞƐŽŵĞďĂĐŬŐƌŽƵŶĚŽŶǁŚŽLJŽƵĂƌĞ͕ǁŚĂƚLJŽƵ͛ƌĞŐŽŽĚ
Ăƚ͕ĂŶĚǁŚĂƚLJŽƵĂƌĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͘ZĞĮŶĞŝƚďLJƉƌĂĐƟĐŝŶŐŝƚďLJLJŽƵƌƐĞůĨĂŶĚǁŝƚŚĨƌŝĞŶĚƐĂŶĚ
ĨĂŵŝůLJ͕ĂŶĚŵĂŬĞĐŚĂŶŐĞƐĂƐLJŽƵƌƐŬŝůůƐĂŶĚƉĂƐƐŝŽŶƐĚĞǀĞůŽƉ͘
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/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽƉĞƌƐŽŶĂůŝnjĞLJŽƵƌƉŝƚĐŚǁŚĞŶŝŶƚĞƌĂĐƟŶŐǁŝƚŚĚŝīĞƌĞŶƚƉĞŽƉůĞ͘hŶĚĞƌƐƚĂŶĚŝŶŐŚŽǁƚŽ
ĚŽƐŽǁŝůůŚĞůƉLJŽƵƚŽĂĚĂƉƚƚŽŶĞǁƐŝƚƵĂƟŽŶƐĂŶĚŚĞůƉLJŽƵƚŽĞdžƉĂŶĚďŽƚŚLJŽƵƌƐŬŝůůƐŽĨĐŽŵŵƵŶŝĐĂƟŽŶ
ĂŶĚLJŽƵƌŶĞƚǁŽƌŬďLJƌĞůĂƟŶŐƚŽŶĞǁƉĞŽƉůĞ͘

Exercise 4.3: Custom Pitch

ŚŽŽƐĞƚǁŽƉĞŽƉůĞĨƌŽŵLJŽƵƌŶĞƚǁŽƌŬŝŶŐƚƌĞĞŝŶdžĞƌĐŝƐĞϰ͘ϮĂŶĚŵĂŬĞŶŽƚĞƐĂďŽƵƚŚŽǁLJŽƵ
ŵŝŐŚƚ ŶĞĞĚ ƚŽ ĐƵƐƚŽŵŝnjĞ LJŽƵƌ ƉŝƚĐŚ ƚŽ ĞĂĐŚ ŽĨ ƚŚŽƐĞ ƉĞŽƉůĞ ďĂƐĞĚ ŽŶ LJŽƵƌ ŶĞĞĚƐ ĂŶĚ ƚŚĞŝƌ
ĞdžƉĞƌƟƐĞŽƌŚĞůƉ͗

Person #1:

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WĞƌƐŽŶηϮ͗

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ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ| T hinking | 49
 Lesson 4.4: Expanding My Network
zŽƵŵĂLJŚĂǀĞƐŽŵĞŝĚĞĂƐĨŽƌĂďƵƐŝŶĞƐƐLJŽƵǁĂŶƚƚŽƐƚĂƌƚďƵƚLJŽƵŵĂLJĨĞĞůLJŽƵůĂĐŬĐĞƌƚĂŝŶŬŶŽǁůĞĚŐĞ
ƚŽ ŵŽǀĞ LJŽƵƌ ŝĚĞĂ ƚŽ ƚŚĞ ŶĞdžƚ ƐƚĞƉ͘ dŚĞƌĞ ĂƌĞ ƉĞŽƉůĞ ŽƵƚ ƚŚĞƌĞ ǁŚŽ ŵĂLJ ŚĂǀĞ ƚŚĞ ŬŶŽǁůĞĚŐĞ LJŽƵ
ŶĞĞĚƐƵĐŚĂƐůĂǁLJĞƌƐ͕ĂĐĐŽƵŶƚĂŶƚƐ͕ĂŶĚĞŶŐŝŶĞĞƌƐ͘zŽƵŵĂLJŶŽƚƉĞƌƐŽŶĂůůLJŬŶŽǁƐŽŵĞŽŶĞǁŝƚŚƚŚĞƐĞ
ďĂĐŬŐƌŽƵŶĚƐďƵƚLJŽƵŵĂLJŬŶŽǁƐŽŵĞŽŶĞǁŚŽĐĂŶĐŽŶŶĞĐƚLJŽƵǁŝƚŚƚŚĞŵ͘dŚŝƐůĞƐƐŽŶǁŝůůŚĞůƉĐŽŶŶĞĐƚ
LJŽƵǁŝƚŚƚŚŽƐĞƉĞŽƉůĞ͊

Exercise 4.4: Connectors

ŚĂŶĐĞƐĂƌĞLJŽƵŬŶŽǁƐŽŵĞŽŶĞǁŚŽŬŶŽǁƐƐŽŵĞŽŶĞLJŽƵǁŽƵůĚůŝŬĞƚŽŬŶŽǁ͘hƐĞƚŚĞƐƉĂĐĞ
ďĞůŽǁůŝƐƚLJŽƵƌĐŽŶŶĞĐƚŽƌƐĂŶĚƚŚĞƉĞŽƉůĞƚŚĞLJĐĂŶĐŽŶŶĞĐƚLJŽƵǁŝƚŚ͘

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EŽǁƚŚĂƚLJŽƵŚĂǀĞLJŽƵƌůŝƐƚŽĨǁŚŽLJŽƵǁŽƵůĚůŝŬĞƚŽŬŶŽǁ͕ƚŚŝŶŬŽĨǁŚLJƚŚĞƉĞƌƐŽŶLJŽƵǁĂŶƚƚŽ
ďĞĐŽŶŶĞĐƚĞĚǁŝƚŚǁŝůůǁĂŶƚƚŽŚĞůƉLJŽƵ͘ŚĂŶĐĞƐĂƌĞƚŚĞLJǁŽŶ͛ƚŚĞůƉĨŽƌĨƌĞĞ͘zŽƵŵĂLJŶĞĞĚƚŽ
ŽīĞƌƐŽŵĞƚŚŝŶŐĨŽƌƚŚĞŝƌŚĞůƉ͘ƌĂŝŶƐƚŽƌŵƐŽŵĞŝĚĞĂƐƚŽŚĂǀĞƚŚĞƉĞƌƐŽŶďĞŵŽƌĞŝŶǀĞƐƚĞĚŝŶ
LJŽƵƌŝĚĞĂ͘DĂLJďĞLJŽƵĐĂŶŽīĞƌƚŚĞŵĂĚŝƐĐŽƵŶƚŽĨLJŽƵƌĨƵƚƵƌĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͍

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50 | T hinking | Building My Network

 Lesson 4.5: Your Personal Brand
ǀĞƌLJƚŚŝŶŐ LJŽƵ ĚŽ ĂŶĚ ƐĂLJ ĞīĞĐƚƐ LJŽƵƌ ƉĞƌƐŽŶĂů ďƌĂŶĚ͘ zŽƵƌ ƉĞƌƐŽŶĂů ďƌĂŶĚ ŝƐ ŚŽǁ ŽƚŚĞƌƐ ǀŝĞǁ ĂŶĚ
ƚŚŝŶŬĂďŽƵƚLJŽƵ͘zŽƵǁĂŶƚƚŽŵĂŬĞƐƵƌĞƚŚĂƚLJŽƵƌĂĐƟŽŶƐůŝŶĞƵƉǁŝƚŚLJŽƵƌǀĂůƵĞƐĂŶĚƐĞŶĚĂƉŽƐŝƟǀĞ
ŵĞƐƐĂŐĞƚŽŽƚŚĞƌƐ͘

Ž LJŽƵ ƵƐĞ &ĂĐĞŬ Žƌ dǁŝƩĞƌ͍ dŚĞƐĞ ĂƌĞ ŐƌĞĂƚ ĂƉƉůŝĐĂƟŽŶƐ ƚŽ ŚĞůƉ ƉƌŽŵŽƚĞ LJŽƵƌ ƉĞƌƐŽŶĂů ďƌĂŶĚ
ƚŽ LJŽƵƌ ŶĞƚǁŽƌŬ ĂŶĚ ƚŚĞ ǁŽƌůĚ͘ /ƚ ŝƐ ĂůƐŽ ǀĞƌLJ ĞĂƐLJ ƚŽ ƉƌŽŵŽƚĞ LJŽƵƌ ďƌĂŶĚ ŶĞŐĂƟǀĞůLJ ƚŚƌŽƵŐŚ ƚŚĞƐĞ
ĂƉƉůŝĐĂƟŽŶƐ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽƌĞŵĞŵďĞƌƚŚĂƚĂŶLJƚŚŝŶŐLJŽƵƉŽƐƚŽŶƚŚĞŝŶƚĞƌŶĞƚĐĂŶďĞƐĞĞŶďLJĂŶLJŽŶĞ
ƵƐŝŶŐĂĐŽŵƉƵƚĞƌ͊

dŚƌŽƵŐŚƚŚŝƐĞdžĞƌĐŝƐĞLJŽƵǁŝůůĚĞǀĞůŽƉĂŶĂĐƟŽŶƉůĂŶƚŽďƵŝůĚLJŽƵƌƉĞƌƐŽŶĂůďƌĂŶĚŝŶƉĞƌƐŽŶĂŶĚƚŚƌŽƵŐŚ
ƐŽĐŝĂůŵĞĚŝĂ͘

Exercise 4.5: Your Personal Brand

/ŵĂŐŝŶĞLJŽƵũƵƐƚŵĞƚƐŽŵĞŽŶĞŶĞǁ͘tŚĞŶLJŽƵƌĐŽŶǀĞƌƐĂƟŽŶŝƐŽǀĞƌ͕ǁŚĂƚĚŽLJŽƵŚŽƉĞƚŚĞŽƚŚĞƌ
ƉĞƌƐŽŶǁŝůůƚŚŝŶŬĂďŽƵƚLJŽƵ͍tŝůůƚŚĞLJƚŚŝŶŬLJŽƵĂƌĞƉĂƐƐŝŽŶĂƚĞ͍&ƵŶŶLJ͍<ŝŶĚ͍ZĞŵĞŵďĞƌLJŽƵ
ǁĂŶƚƚŽƐŚŽǁLJŽƵƌǀĂůƵĞƐ͊

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tƌŝƚĞĂƉĂƌĂŐƌĂƉŚŽŶǁŚĂƚĂĐƟŽŶƐLJŽƵƐŚŽƵůĚƐƚĂƌƚƚĂŬŝŶŐƚŽƉƌŽŵŽƚĞƚŚĞƉĞƌƐŽŶĂůďƌĂŶĚĂďŽǀĞ͘
EŽǁƵƐĞƚŚŝƐƉůĂŶƚŽƉƌŽŵŽƚĞLJŽƵƌƉĞƌƐŽŶĂůďƌĂŶĚ͊

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ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ| T hinking | 51
 Exercise 4.6: Social Media
dŚŝŶŬŽĨƚŚĞůĂƐƚĨĞǁƚŚŝŶŐƐLJŽƵƉŽƐƚĞĚƵƐŝŶŐƐŽĐŝĂůŵĞĚŝĂ͘/ĨĂƐƚƌĂŶŐĞƌƌĞĂĚƚŚŽƐĞƉŽƐƚƐ͕ǁŚĂƚ
ǁŽƵůĚƚŚĞLJƚŚŝŶŬĂďŽƵƚLJŽƵ͍

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tŚĂƚƚLJƉĞŽĨƉŽƐƚƐǁŝůůĞīĞĐƚLJŽƵƌƉĞƌƐŽŶĂůďƌĂŶĚŝŶĂƉŽƐŝƟǀĞǁĂLJͲͲĚĞǀĞůŽƉƐŽŵĞŐƵŝĚĞůŝŶĞƐƚŽ
ŵĂŬĞƐƵƌĞĞǀĞƌLJƚŚŝŶŐLJŽƵƉŽƐƚŽŶůŝŶĞƉƌŽŵŽƚĞƐLJŽƵŝŶĂƉŽƐŝƟǀĞǁĂLJ͘

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52 | T hinking | Building My Network

 ZĞŇĞĐƟŽŶ͗ My Network
ĞůŽǁ͕ƐƵŵŵĂƌŝnjĞƐŽŵĞŽĨƚŚĞƌĞůĂƟŽŶƐŚŝƉƐĂŶĚƌĞƐŽƵƌĐĞƐĂǀĂŝůĂďůĞƚŽLJŽƵƚŚĂƚŵĂLJŚĞůƉLJŽƵŝŶ
ĚĞǀĞůŽƉŝŶŐĂďƵƐŝŶĞƐƐ͘hƐĞƚŚŝƐƐƉĂĐĞƚŽůŝƐƚƐŽŵĞŽĨƚŚĞƚŚŝŶŐƐLJŽƵŚĂǀĞůĞĂƌŶĞĚĂďŽƵƚďƵŝůĚŝŶŐ
ŶĞƚǁŽƌŬƐ ĂŶĚ ƚŚĞŝƌ ŝŵƉŽƌƚĂŶĐĞ͘ ŝƐĐƵƐƐ ƐŽŵĞ ŽĨ ƚŚĞ ǁĂLJƐ LJŽƵƌ ŶĞƚǁŽƌŬ ĐĂŶ ŚĞůƉ LJŽƵ ďƵŝůĚ Ă
ďĞƩĞƌďƵƐŝŶĞƐƐ͘

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ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
_______________________________________ ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
_______________________________________ ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
_______________________________________ ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
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ƵŝůĚŝŶŐDLJEĞƚǁŽƌŬ| T hinking | 53
>> Knowing My
Community

tŚĂƚĚŽ/ŬŶŽǁ͍

5
tŚĂƚĚŽŶ͛ƚ/ŬŶŽǁ͍
ŽŵƉůĞƟŶŐƚŚĞWŝĐƚƵƌĞ
/ŶƚŚŝƐůĞƐƐŽŶ͕ǁĞǁŝůůĐŽŶƐŝĚĞƌǁŚĂƚLJŽƵŬŶŽǁĂďŽƵƚƚŚĞƉĞŽƉůĞ͕ŶĞĞĚƐĂŶĚǁĂŶƚƐŽĨLJŽƵƌ
ĐŽŵŵƵŶŝƚLJƚŽŚĞůƉLJŽƵŝĚĞŶƟĨLJƉŽƚĞŶƟĂůďƵƐŝŶĞƐƐŽƉƉŽƌƚƵŶŝƟĞƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Community:ƐŽĐŝĂůŐƌŽƵƉŽĨĂŶLJ
ƐŝnjĞǁŚŽƐĞŵĞŵďĞƌƐƌĞƐŝĚĞŝŶĂ
ƐƉĞĐŝĮĐůŽĐĂůŝƚLJ͘
Area of Opportunity:ŐŽŽĚ
ƉŽƐŝƟŽŶ͕ĐŚĂŶĐĞ͕ŽƌƉƌŽƐƉĞĐƚ͕ĂƐĨŽƌ
ĂĚǀĂŶĐĞŵĞŶƚŽƌƐƵĐĐĞƐƐ͘
Community Needs:^ŽŵĞƚŚŝŶŐƚŚĂƚ
ŝƐŶĞĐĞƐƐĂƌLJƚŽŝŵƉƌŽǀĞƚŚĞƋƵĂůŝƚLJ
ŽĨůŝĨĞŝŶƚŚĞĐŽŵŵƵŶŝƚLJ͘
ƐƐƵŵƉƟŽŶ͗^ŽŵĞƚŚŝŶŐLJŽƵƚŚŝŶŬ
ƚŽďĞƚƌƵĞǁŚŝĐŚŵĂLJŽƌŵĂLJŶŽƚ
ďĞƚƌƵĞ
 Lesson 5.1: Knowing My Community
<ŶŽǁŝŶŐLJŽƵƌĐŽŵŵƵŶŝƚLJŝƐĂďŽƵƚƵŶĚĞƌƐƚĂŶĚŝŶŐŚŽǁLJŽƵƌǀĂůƵĞƐ͕ƉĂƐƐŝŽŶƐ͕ĂŶĚƐŬŝůůƐŵĂƚĐŚǁŝƚŚƚŚĞ
ŶĞĞĚƐŽƌǁĂŶƚƐŽĨLJŽƵƌĐŽŵŵƵŶŝƚLJ͘WƌĞǀŝŽƵƐĐŚĂƉƚĞƌƐŝŶƚŚŝƐŬ͕ŚĞůƉĞĚLJŽƵƚŽŬŶŽǁLJŽƵƌǀĂůƵĞƐ͕
ƉĂƐƐŝŽŶƐ͕ĂŶĚƐŬŝůůƐ͘<ŶŽǁŝŶŐLJŽƵƌƐĞůĨƌĞƋƵŝƌĞƐŬŶŽǁŝŶŐǁŚŽLJŽƵĂƌĞ͕ǁŚĂƚLJŽƵĐĂƌĞĂďŽƵƚ͕ĂŶĚǁŚĂƚ
LJŽƵŚĂǀĞĂĐĐĞƐƐƚŽ͘EŽǁŝƚŝƐƟŵĞƚŽĚŽƚŚĞƐĂŵĞǁŝƚŚLJŽƵƌĐŽŵŵƵŶŝƚLJ͘dŚĞĮƌƐƚƐƚĞƉŝƐůŝƐƚĞŶŝŶŐ͘ǀĞŶ
ƚŚŽƵŐŚLJŽƵŵĂLJŚĂǀĞůŝǀĞĚŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJĨŽƌĂůŽŶŐƟŵĞ͕LJŽƵŵĂLJďĞƐƵƌƉƌŝƐĞĚďLJƚŚĞŶĞǁƚŚŝŶŐƐ
LJŽƵǁŝůůůĞĂƌŶǁŚĞŶLJŽƵůŝƐƚĞŶĐůŽƐĞůLJƚŽƚŚŽƐĞĂƌŽƵŶĚLJŽƵ͘dŚŝƐĐŚĂƉƚĞƌǁŝůůĐŚĂůůĞŶŐĞLJŽƵƚŽƌĞĂůůLJůŝƐƚĞŶ
ĂŶĚĞŶŐĂŐĞǁŝƚŚĚŝīĞƌĞŶƚƉĞŽƉůĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJŝŶŽƌĚĞƌƚŽŝĚĞŶƟĨLJĂŶĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJǁŚĞƌĞ
LJŽƵĐŽƵůĚŚĂǀĞĂƉŽƐŝƟǀĞŝŵƉĂĐƚŽŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͘

tŚŽŝƐLJŽƵƌĐŽŵŵƵŶŝƚLJ͍ƚĮƌƐƚŐůĂĐĞ͕LJŽƵŵŝŐŚƚƚŚŝŶŬŝƚŝƐLJŽƵƌ
ĞŶƟƌĞŝŵŵĞĚŝĂƚĞůŝǀŝŶŐĐŽŵŵƵŶŝƚLJ͘ƵƚůŽŽŬŝŶŐĨƵƌƚŚĞƌ͕LJŽƵŵĂLJ
ƌĞĂůŝnjĞ ƚŚĂƚ ƚŚĞƌĞ ĂƌĞ ŵĂŶLJ ĚŝīĞƌĞŶƚ ƐŵĂůůĞƌ ĐŽŵŵƵŶŝƟĞƐ ŽĨ
Dance ǁŚŝĐŚLJŽƵĂƌĞĂŵĞŵďĞƌͲͲĨŽƌĞdžĂŵƉůĞ͕LJŽƵƌƐĐŚŽŽůĐŽŵŵƵŶŝƚLJ͕
Football
Club LJŽƵƌ ĐŚƵƌĐŚ ĐŽŵŵƵŶŝƚLJ͕ LJŽƵƌ ƐŽĐĐĞƌ ĐŽŵŵƵŶŝƚLJ͕ ĐŽŵŵƵŶŝƚLJ
ŽĨ ǁŽŵĞŶ Žƌ ĐŽŵŵƵŶŝƚLJ ŽĨ ŵĞŶ͕ Žƌ LJŽƵƌ ŵƵƐŝĐŝĂŶ Žƌ ĚĂŶĐĞ
ĐŽŵŵƵŶŝƚLJ͘
Church
School tŚĂƚĚŽĞƐŝƚŵĞĂŶƚŽŬŶŽǁĂĐŽŵŵƵŶŝƚLJ͍<ŶŽǁŝŶŐĂĐŽŵŵƵŶŝƚLJ
ŵĞĂŶƐƵŶĚĞƌƐƚĂŶĚŝŶŐƚŚĞŝƌŶĞĞĚƐ͘ŶĞĞĚŝƐĂůĂĐŬŽĨƐŽŵĞƚŚŝŶŐ͘
ŽŵŵŽŶĐŽŵŵƵŶŝƚLJŶĞĞĚƐŵŝŐŚƚďĞĂůĂĐŬŽĨĞĚƵĐĂƟŽŶ͕ĨŽŽĚ͕
ŚŽƵƐŝŶŐ͕ ĞŶƚƌĞƉƌĞŶĞƵƌŝĂů ƐƉŝƌŝƚ͕ ƚƌĂŶƐƉŽƌƚĂƟŽŶ͕ ĐŽŵŵƵŶŝĐĂƟŽŶ͕
Your Community ŚĞĂůƚŚĐĂƌĞ͕ĐůŽƚŚŝŶŐ͕ƐĞŶƐĞŽĨĐŽŵŵƵŶŝƚLJ͕ƐĂŶŝƚĂƟŽŶ͕ĞŶĞƌŐLJ͕Žƌ
ƵŶĞŵƉůŽLJŵĞŶƚ ĂŶĚ ƵŶĚĞƌĞŵƉůŽLJŵĞŶƚ͘ <ŶŽǁŝŶŐ Ă ĐŽŵŵƵŶŝƚLJ
ĂůƐŽ ŵĞĂŶƐ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŬĞLJ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ƐƵĐŚ ĂƐ ůŽĐĂƟŽŶ͕

,ŽǁĚŽĞƐŬŶŽǁŝŶŐLJŽƵƌĐŽŵŵƵŶŝƚLJĐƌĞĂƚĞĂŶ
ĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJ͍KƉƉŽƌƚƵŶŝƚLJĐŽŵĞƐĨƌŽŵ
Ă ŵĂƚĐŚ ďĞƚǁĞĞŶ LJŽƵ ĂŶĚ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͘
/ĚĞŶƟĨLJŝŶŐ ĂŶ ĂƌĞĂ ŽĨ ŽƉƉŽƌƚƵŶŝƚLJ ŝƐ ƚŚĞ ĮƌƐƚ
ƐƚĞƉƚŽŐĞŶĞƌĂƟŶŐĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂ͘
Area of Your ŐŽŽĚŝĚĞĂŝŶŽŶĞƉůĂĐĞŝŶƚŚĞǁŽƌůĚŵĂLJŶŽƚďĞ
You
Opportunity Community ĂŐŽŽĚŝĚĞĂŝŶĂŶŽƚŚĞƌƉůĂĐĞ͘&ŽƌĞdžĂŵƉůĞ͕Ă
ƉƌŽĚƵĐƚƚĂƌŐĞƚĞĚĂƚƚŚŽƐĞǁŚŽĮƐŚŵŝŐŚƚǁŽƌŬ
ǁĞůůŝŶĂĐŽŵŵƵŶŝƚLJďLJƚŚĞŽĐĞĂŶďƵƚŶŽƚŝŶĂ
ĐŽŵŵƵŶŝƚLJŝŶƚŚĞŵŽƵŶƚĂŝŶƐ͘dŚŝƐŝƐďĞĐĂƵƐĞ
ƚŚĞ ŶĞĞĚƐ ĂŶĚ ƌĞƐŽƵƌĐĞƐ ŽĨ ĞĂĐŚ ĐŽŵŵƵŶŝƚLJ
ĂƌĞĚŝīĞƌĞŶƚ͘

ƐLJŽƵĐŚĂŶŐĞŽƌĂƐƚŚĞĐŽŵŵƵŶŝƚLJƵŶĚĞƌŐŽĞƐĐŚĂŶŐĞƐ͕ƚŚĞŽƉƉŽƌƚƵŶŝƚLJǁŝůůĐŚĂŶŐĞ͘/ƚŝƐĂŶŝƚĞƌĂƟǀĞ
ĐLJĐůĞ͘dŚŝƐŝƐǁŚLJŝƚŝƐƐŽŝŵƉŽƌƚĂŶƚƚŽĐŽŶƟŶƵĂůůLJƌĞŇĞĐƚŽŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͛ƐŶĞĞĚƐĂƐǁĞůůĂƐLJŽƵƌ
ŽǁŶŬŶŽǁůĞĚŐĞ͕ƉĂƐƐŝŽŶƐ͕ĂŶĚƐŬŝůůƐĂŶĚĂƐĂƌĞƐƵůƚ͕ƌĞƐŚĂƉĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJ͘/ƚŝƐƐŝŵƉůLJŶŽƚƉŽƐƐŝďůĞ
ƚŽŬĞĞƉƚŚĞƐĂŵĞƉƌŽĚƵĐƚͬƐĞƌǀŝĐĞƐŽůƵƟŽŶĨŽƌĞǀĞƌĂŶĚĂƐƐƵŵĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJŝƐƚŚĞƐĂŵĞĂƐŝƚǁĂƐϮϬ
LJĞĂƌƐĂŐŽ͘dŚŝŶŐƐĐŚĂŶŐĞ͘dŚŝƐŝƐǁŚĞƌĞŵŽƐƚĐŽŵƉĂŶŝĞƐĨĂŝůͲͲƚŚĞLJĚŽŶ͛ƚƌĞŇĞĐƚŽŶŚŽǁƚŚĞLJĂŶĚƚŚĞŝƌ
ĐŽŵŵƵŶŝƟĞƐŚĂǀĞĐŚĂŶŐĞĚĂŶĚĂĚĂƉƚ͘ĞůŽǁŝƐĂŶĞdžĂŵƉůĞŽĨŚŽǁĂďƵƐŝŶĞƐƐĮƚƐŝŶƚŚŝƐŵŽĚĞů͘

Your Community
Area of WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ
You Key
Needs Opportunity ^ŽůƵƟŽŶ
ŚĂƌĂĐƚĞƌŝƐƟĐƐ
Value:ŚĂƌĚǁŽƌŬ ŶũŽLJƉůĂLJŝŶŐ There is trash WƌŽǀŝĚĞƐŵĂůů tĂƐƚĞ
Skills:ďŝŬŝŶŐ͕ ĨŽŽƚďĂůůͲͲ ĞǀĞƌLJǁŚĞƌĞ͘ ďƵƐŝŶĞƐƐŽǁŶĞƌƐ ŵĂŶĂŐĞŵĞŶƚ
ĂĐĐŽƵŶƟŶŐ ĞƐƉĞĐŝĂůůLJLJŽƵŶŐ dŚĞƌĞĂƌĞƌĞĐLJĐůĞ ǁŝƚŚƐŽŵĞƚŚŝŶŐ ƐĞƌǀŝĐĞǁŚŝĐŚ
Passion:ŶĂƚƵƌĞ ĐŚŝůĚƌĞŶĂŌĞƌ ĨĂĐŝůŝƟĞƐďƵƚŶŽ ƚŽĚŽǁŝƚŚƚŚĞŝƌ ƉŝĐŬƐƵƉƚƌĂƐŚ͕
ĂŶĚĐŽŶƐĞƌǀŝŶŐ ƐĐŚŽŽů͘ ŽŶĞƵƐĞƐƚŚĞŵ͘ trash ĐŽŵƉŽƐƚĂďůĞƐ͕
ƚŚĞĞŶǀŝƌŽŶŵĞŶƚ WĞŽƉůĞŐĞƚƐŝĐŬ ĂŶĚƌĞĐLJĐůĂďůĞƐ
Network:ƐŵĂůů ĨƌŽŵůĂĐŬŽĨ ĨƌŽŵƐŵĂůů
ďƵƐŝŶĞƐƐŽǁŶĞƌƐ͕ ƐĂŶŝƚĂƟŽŶ͘ ďƵƐŝŶĞƐƐŽǁŶĞƌƐ
other bikers

<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ | T hinking | 57
 zŽƵŚĂǀĞĂůƌĞĂĚLJŝĚĞŶƟĮĞĚLJŽƵƌǀĂůƵĞƐ͕ƐŬŝůůƐ͕ƉĂƐƐŝŽŶƐ͕ĂŶĚŶĞƚǁŽƌŬĂƐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘/ŶƚŚŝƐĐŚĂƉƚĞƌ͕
LJŽƵǁŝůůŐĞƚƚŽŬŶŽǁLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚŝĚĞŶƟĨLJĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJ͘/ŶƚŚĞŶĞdžƚĐŚĂƉƚĞƌ͕LJŽƵǁŝůů
ƚƵƌŶƚŚŽƐĞĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJŝŶƚŽĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶ͘tŚŝůĞLJŽƵǁŝůůŶŽƚďĞƚŚŝŶŬŝŶŐĂďŽƵƚ
ƉŽƚĞŶƟĂůƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶƐŝŶƚŚŝƐĐŚĂƉƚĞƌ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽƌĞĂůŝnjĞǁŚLJƚƌƵůLJƵŶĚĞƌƐƚĂŶĚŝŶŐ
ĂŶĚĚĞǀĞůŽƉŝŶŐĂƐƚƌŽŶŐĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJŝƐĐƌƵĐŝĂůǁŚĞŶďĞŐŝŶŶŝŶŐƚŽŐĞŶĞƌĂƚĞďƵƐŝŶĞƐƐŝĚĞĂƐŝŶƚŚĞ
ŶĞdžƚĐŚĂƉƚĞƌ͘DŽƐƚŝŵƉŽƌƚĂŶƚůLJ͕ĂŶĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJŝƐĚŝīĞƌĞŶƚƚŚĂŶĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶ͘
ŶĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJŝƐĂŐŽĂůǁŚŝĐŚŝƐŝŶƚĞŶƟŽŶĂůůLJĂďƐƚƌĂĐƚLJĞƚƐƉĞĐŝĮĐŝŶŽƌĚĞƌƚŽĂůůŽǁLJŽƵƚŽƚŚŝŶŬ
ŵŽƌĞĐƌĞĂƟǀĞůLJĂďŽƵƚƉŽƚĞŶƟĂůƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂƐ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵŝĚĞŶƟĨLJƚŚĂƚĞĚƵĐĂƟŽŶŝƐĂ
ŶĞĞĚŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚLJŽƵƐƚĂƚĞLJŽƵƌĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJĂƐ͞ƐƚĂƌƟŶŐĂƐĐŚŽŽů͕͟LJŽƵůĞĂǀĞŶŽƌŽŽŵ
ĨŽƌLJŽƵƚŽŐĞŶĞƌĂƚĞĂŶLJďƵƐŝŶĞƐƐŝĚĞĂƐŽƚŚĞƌƚŚĂŶƐƚĂƌƟŶŐĂƐĐŚŽŽů͘/ĨLJŽƵŝĚĞŶƟĨLJƚŚĂƚŚĞĂůƚŚĐĂƌĞŝƐĂ
ŶĞĞĚŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚLJŽƵƐƚĂƚĞLJŽƵƌĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJĂƐ͞ůĂĐŬŽĨŵĞĚŝĐĂůĨĂĐŝůŝƟĞƐ͕͟LJŽƵůĞĂǀĞ
ŶŽƌŽŽŵĨŽƌLJŽƵƚŽŐĞŶĞƌĂƚĞďƵƐŝŶĞƐƐŝĚĞĂƐŽƚŚĞƌƚŚĂŶďƵŝůĚŝŶŐŵŽƌĞŵĞĚŝĐĂůĨĂĐŝůŝƟĞƐ͘/ƚŝƐƚĞŵƉƟŶŐƚŽ
ƐĞĞĂŶĞĞĚĂŶĚĂƵƚŽŵĂƟĐĂůůLJƚŚŝŶŬŽĨĂƐŽůƵƟŽŶƚŽƚŚĂƚŶĞĞĚͲͲďƵƚƌĞŵĞŵďĞƌƚŽƐƵƐƉĞŶĚƚŚŝƐ͊

Exercise 5.1: dĞƐƚzŽƵƌhŶĚĞƌƐƚĂŶĚŝŶŐ

EŽǁŝƚŝƐƟŵĞƚŽĐŚĞĐŬLJŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐ͘dĂŬĞƚŚĞůŝƐƚŽĨƐƚĂƚĞŵĞŶƚƐďĞůŽǁĂŶĚŽƌŐĂŶŝnjĞƚŚĞŵ
ŝŶƚŚĞĂƉƉƌŽƉƌŝĂƚĞĐŽŵƉĂƌƚŵĞŶƚƐŝŶƚŚĞƚĂďůĞďĞůŽǁ͘

ͻ/ŚĂǀĞƐŽŵĞŽŶĞŝŶŵLJŶĞƚǁŽƌŬǁŚŽŵĂŶƵĨĂĐƚƵƌĞƐĨŽŽƚďĂůůƐ͘
ͻWƌŽǀŝĚĞŵŽƌĞƟŵĞĨŽƌĚŽŝŶŐƐĐŚŽŽůǁŽƌŬ
ͻ/ŚĂǀĞŵĞĐŚĂŶŝĐĂůĞŶŐŝŶĞĞƌŝŶŐƐŬŝůůƐ
ͻ/ĂŵƉĂƐƐŝŽŶĂƚĞĂďŽƵƚĞĚƵĐĂƟŽŶ͘
ͻ&ŽŽƚďĂůůƚŚĂƚŚŽůĚƐĂďĂƩĞƌLJĐŚĂƌŐĞĚďLJŵŽƟŽŶ͘ŌĞƌƉůĂLJŝŶŐĚƵƌŝŶŐƚŚĞĚĂLJ͕ĐĂŶƉƵƚƚŚĞ
ĐŚĂƌŐĞĚďĂƩĞƌLJŝŶĂůŝŐŚƚƚŽƐƚƵĚLJďLJ͘
ͻŶũŽLJƉůĂLJŝŶŐĨŽŽƚďĂůůͲͲĞƐƉĞĐŝĂůůLJLJŽƵŶŐĐŚŝůĚƌĞŶĂŌĞƌƐĐŚŽŽů͘
ͻDĂŶLJƐƚƵĚĞŶƚƐĚƌŽƉͲŽƵƚŽĨƐĐŚŽŽů͘DĂŶLJƐƚƵĚĞŶƚƐŚĂǀĞĐŚŽƌĞƐƚŚĞLJŚĂǀĞƚŽĐŽŵƉůĞƚĞĚƵƌŝŶŐ
ƚŚĞĚĂLJůŝŐŚƚĂŶĚƌƵŶŽƵƚŽĨƟŵĞƚŽĚŽŚŽŵĞǁŽƌŬ͘

zŽƵƌŽŵŵƵŶŝƚLJ
ƌĞĂŽĨ WƌŽĚƵĐƚŽƌ
zŽƵ Key
Needs KƉƉŽƌƚƵŶŝƚLJ ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
ŚĂƌĂĐƚĞƌŝƐƟĐƐ

58 | T hinking | <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ
EŽǁƚŚĂƚLJŽƵƵŶĚĞƌƐƚĂŶĚƚŚĞƚĞƌŵƐĂŶĚƚŚĞǁĂLJŝŶǁŚŝĐŚLJŽƵĂŶĚLJŽƵƌĐŽŵŵƵŶŝƚLJĐĂŶĐŽŵĞƚŽŐĞƚŚĞƌ
ƚŽĐƌĞĂƚĞŽƉƉŽƌƚƵŶŝƚLJ͕ƵƐĞƚŚĞĞdžĞƌĐŝƐĞďĞůŽǁƚŽƚƌLJƚŚŝŶŬŝŶŐŽĨďƵƐŝŶĞƐƐĞƐLJŽƵŬŶŽǁŽĨǁŚŝĐŚĂƌĞďŽƚŚ
ƐƵĐĐĞƐƐĨƵůĂŶĚƵŶƐƵĐĐĞƐƐĨƵůŝŶĮŶĚŝŶŐƚŚŝƐŚĂƌŵŽŶLJ͘

Exercise 5.2: Think of Examples

dŚŝŶŬŽĨĂƐƵĐĐĞƐƐĨƵůƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶLJŽƵŬŶŽǁŽĨŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJŽƌĐŽƵŶƚƌLJ͘&ŝůů
ŝŶƚŚĞĐŚĂƌƚďĞůŽǁĨŽƌƚŚĞďƵƐŝŶĞƐƐ͘

zŽƵƌŽŵŵƵŶŝƚLJ
ƌĞĂŽĨ WƌŽĚƵĐƚŽƌ
zŽƵ Key
Needs KƉƉŽƌƚƵŶŝƚLJ ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
ŚĂƌĂĐƚĞƌŝƐƟĐƐ

tŚLJĚŽLJŽƵƚŚŝŶŬƚŚŝƐĐŽŵƉĂŶLJŝƐƐƵĐĐĞƐƐĨƵů͍

_______________________________________
dŚŝŶŬŽĨĂŶƵŶƐƵĐĐĞƐƐĨƵůƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶLJŽƵŬŶŽǁŽĨŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJŽƌĐŽƵŶƚƌLJ͘
&ŝůůŝŶƚŚĞĐŚĂƌƚďĞůŽǁĨŽƌƚŚĞďƵƐŝŶĞƐƐ͘

zŽƵƌŽŵŵƵŶŝƚLJ
ƌĞĂŽĨ WƌŽĚƵĐƚŽƌ
zŽƵ Key
Needs KƉƉŽƌƚƵŶŝƚLJ ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
ŚĂƌĂĐƚĞƌŝƐƟĐƐ

tŚLJĚŽLJŽƵƚŚŝŶŬƚŚŝƐĐŽŵƉĂŶLJŝƐŶŽƚƐƵĐĐĞƐƐĨƵů͍

_______________________________________

<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ | T hinking | 59
 Lesson 5.2: What Do I Know?
EŽǁ ƚŚĂƚ LJŽƵ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ĐŽŶĐĞƉƚƐ ŽĨ ƚŚŝƐ ĐŚĂƉƚĞƌ͕ ŝƚ ŝƐ ƟŵĞ ƚŽ ĂƉƉůLJ ƚŚŝƐ ƚŽ LJŽƵƌ ůŝĨĞ ĂŶĚ LJŽƵƌ
ĐŽŵŵƵŶŝƚLJ͘/ŶƚŚŝƐůĞƐƐŽŶ͕LJŽƵǁŝůůďĞŐŝŶƚŽŐĞŶĞƌĂƚĞĂƌŝĐŚƐŽƵƌĐĞŽĨŝŶĨŽƌŵĂƟŽŶĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJ͘
LJƚŚĞĞŶĚŽĨƚŚŝƐůĞƐƐŽŶ͕LJŽƵǁŝůůŚĂǀĞŝĚĞŶƟĮĞĚĨŽƵƌĚŝīĞƌĞŶƚĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJ͘zŽƵŵŝŐŚƚƚŚŝŶŬ
LJŽƵŬŶŽǁĂůŽƚĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJďƵƚLJŽƵǁŝůůůŝŬĞůLJĚŝƐĐŽǀĞƌĂůŽƚŵŽƌĞƚŚƌŽƵŐŚŽƵƚƚŚŝƐĐŚĂƉƚĞƌ͘

Exercise 5.3: What I Know

ŶƐǁĞƌƚŚĞƋƵĞƐƟŽŶƐďĞůŽǁĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJƚŽĐŽůůĞĐƚŝŶĨŽƌŵĂƟŽŶƚŚĂƚǁŝůůďĞŚĞůƉĨƵůƚŽ
LJŽƵŝŶƚŚĞĨƵƚƵƌĞ͘/ĨLJŽƵĚŽŶŽƚŬŶŽǁƚŚĞĂŶƐǁĞƌƚŽĞĂĐŚƋƵĞƐƟŽŶ͕ŵĂŬĞLJŽƵƌďĞƐƚŐƵĞƐƐŽƌĂƐŬ
ƚŚŽƐĞĂƌŽƵŶĚLJŽƵĂŶĚƐƵŵŵĂƌŝnjĞƚŚĞŝƌĂŶƐǁĞƌƐ͘

tŚĂƚŝƐƚŚĞŶĂŵĞŽĨLJŽƵƌĐŝƚLJŽƌĐŽŵŵƵŶŝƚLJ͍

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ďŽƵƚŚŽǁŵĂŶLJƉĞŽƉůĞůŝǀĞƚŚĞƌĞ͍

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tŚĂƚŝƐĂƉůĂĐĞǁŚĞƌĞŵĂŶLJƉĞŽƉůĞĐŽŵĞƚŽŐĞƚŚĞƌŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͍
/ůŝǀĞŝŶĂůĂƌŐĞĐŝƚLJǁŚĞƌĞ
ŵĂŶLJƚŚŽƵƐĂŶĚƐŽĨƉĞŽƉůĞ
ůŝǀĞĂƐǁĞůů͘tĞůŝŬĞƚŽŵĞĞƚ
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ĂƚƚŚĞĐŚƵƌĐŚŽƌƐŽŵĞƟŵĞƐ
ĂƚƚŚĞŵĂƌŬĞƚ͘WĞŽƉůĞŚĞƌĞ
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ƚĞŶĚƚŽǁĂůŬƚŽŵĂŶLJƉůĂĐĞƐ͘/
ŚĞĂƌƚŚĂƚŝŶƚŚĞĂƉŝƚĂů͕ƚŚĞƌĞ tŚĂƚŝƐĂƉŽƉƵůĂƌƐƚŽƌĞ͍
ŝƐŵŽƌĞƚƌĂŶƐƉŽƌƚĂƟŽŶďLJĐĂƌ͘
/ƚŚŝŶŬƚŚĂƚŝĨŵŽƌĞƉĞŽƉůĞ
ƚƌĂǀĞůĞĚďLJĐĂƌǁŚĞƌĞ/ůŝǀĞ͖
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ǀĞŶĚŽƌƐǁŽƵůĚŶŽƚďĞĂďůĞ
ƚŽƐĞůůĂƐŵƵĐŚŽŶƚŚĞƐƚƌĞĞƚƐ tŚĂƚŝƐĂƉŽƉƵůĂƌƐƉŽƌƚ͕ĂĐƟǀŝƚLJŽƌŐĂŵĞ͍
ǁŚĞƌĞǁĂůŬĞƌƐƚĞŶĚƚŽƉĂƐƐ͘
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,ŽǁĚŽŵŽƐƚƉĞŽƉůĞƚƌĂǀĞů͍

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tŚĞƌĞĚŽƉĞŽƉůĞŐŽƚŽƐĐŚŽŽů͍

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tŚĞƌĞĚŽƉĞŽƉůĞǁŽƌŬ͍tŚĂƚŝƐĂĐŽŵŵŽŶďƵƐŝŶĞƐƐ͍

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/ƐƚŚĞƌĞĂŶLJƚŚŝŶŐĞůƐĞƚŚĂƚŝƐƐŝŐŶŝĮĐĂŶƚƚŽƌĞŵĞŵďĞƌĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJ͍

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60 | T hinking | <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ
ĂƐĞĚ ŽŶ LJŽƵƌ ĐƵƌƌĞŶƚ ŬŶŽǁůĞĚŐĞ͕ ǁŚĂƚ ŵŝŐŚƚ ďĞ ŶĞĞĚƐ ŝŶ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͍ ,ĞƌĞ ĂƌĞ ƐŽŵĞ
ĐŽŵŵŽŶ ĐŽŵŵƵŶŝƚLJ ŶĞĞĚƐ ƚŽ ŚĞůƉ LJŽƵ ŐĞƚ ƐƚĂƌƚĞĚ ƚŚŝŶŬŝŶŐ͗ ĞĚƵĐĂƟŽŶ͕ ĨŽŽĚ͕ ŚŽƵƐŝŶŐ͕
ĞŶƚƌĞƉƌĞŶĞƵƌŝĂůƐƉŝƌŝƚ͕ƵŶĞŵƉůŽLJŵĞŶƚ͕ƚƌĂŶƐƉŽƌƚĂƟŽŶ͕ĞŶĞƌŐLJ͕ǁĂƚĞƌ͕ǁĂƐƚĞ͕ƐĞŶƐĞŽĨĐŽŵŵƵŶŝƚLJ͕
ĐůŽƚŚŝŶŐ͕ ĐŽŵŵƵŶŝĐĂƟŽŶ͕ ŚĞĂůƚŚ͕ ƵŶĞŵƉůŽLJŵĞŶƚ ĂŶĚ ƵŶĚĞƌĞŵƉůŽLJŵĞŶƚ͘ Ğ ƐƉĞĐŝĮĐ ĂďŽƵƚ
ǁŚŽƐĞŶĞĞĚLJŽƵƚŚŝŶŬŝƚŝƐĂŶĚǁŚĞƌĞƚŚĞŶĞĞĚƚĂŬĞƐƉůĂĐĞ͘

&ŽƌĞdžĂŵƉůĞ͕
^ĂŵĂŶĚ'ƌĂĐĞ
ŝĚĞŶƟĨLJůŝƩĞƌŝŶŐ
ŽŶƚŚĞƌŽĂĚƐ
WŽƚĞŶƟĂů ŶĞĂƌďLJƐŵĂůů
Community ďƵƐŝŶĞƐƐĞƐĂƐ
Needs ĂŶĞĞĚŝŶƚŚĞŝƌ
ĐŽŵŵƵŶŝƚLJ͘

<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ | T hinking | 61
 ĂƐĞĚŽŶǁŚĂƚLJŽƵŚĂǀĞǁƌŝƩĞŶĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJĂďŽǀĞ͕ǁŚĂƚĂƌĞĨŽƵƌƉŽƚĞŶƟĂůĂƌĞĂƐŽĨ
ŽƉƉŽƌƚƵŶŝƚLJLJŽƵǁĂŶƚƚŽŝŶǀĞƐƟŐĂƚĞĨƵƌƚŚĞƌ͍

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϭ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϮ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϯ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϰ͗

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<ĞĞƉĂŶŽƉĞŶŵŝŶĚĂďŽƵƚƉŽƚĞŶƟĂůƐŽůƵƟŽŶƐͲͲĨŽƌŶŽǁ͕ũƵƐƚĨŽĐƵƐŽŶƚŚĞƉƌŽďůĞŵƐLJŽƵǁĂŶƚƚŽƐŽůǀĞ͘
dŚŝƐĐŚĂƉƚĞƌŝƐĂďŽƵƚŬŶŽǁŝŶŐLJŽƵƌĐŽŵŵƵŶŝƚLJ͘zŽƵǁŝůůĨŽĐƵƐŽŶŝĚĞĂŐĞŶĞƌĂƟŽŶŝŶƚŚĞŶĞdžƚĐŚĂƉƚĞƌ͘
zŽƵƌĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJǁŝůůďĞĂũƵŵƉŝŶŐƉŽŝŶƚĨŽƌŝĚĞĂŐĞŶĞƌĂƟŽŶŝŶƚŚĞŶĞdžƚĐŚĂƉƚĞƌƐŽŝƚŝƐŝŵƉŽƌƚĂŶƚ
ƚŽĚŽƌĞƐĞĂƌĐŚŶŽǁ͘dŚŝƐŝƐŽŶĞŽĨƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚƉĂƌƚƐŽĨĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĂŶĚƐŽŵĞƚŚŝŶŐƉĞŽƉůĞ
ŽŌĞŶĚŽŶ͛ƚĚŽ͘

Lesson 5.3: What Don’t I Know?

tŚĞŶ LJŽƵ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ŶĞĞĚƐ ŽĨ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͕ LJŽƵ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ǁŝƚŚŝŶ LJŽƵƌ
ĐŽŵŵƵŶŝƚLJ͖ĞǀĞƌLJŶĞĞĚƚŚĂƚĞdžŝƐƚƐŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJĨŽƌLJŽƵƌďƵƐŝŶĞƐƐƚŽĨƵůĮůůƚŚĂƚŶĞĞĚ͘dŚŝƐŝƐǁŚLJŝƚ
ŝƐƐŽŝŵƉŽƌƚĂŶƚƚŽŚĂǀĞĂƚŚŽƌŽƵŐŚƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚƚŚĞĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJLJŽƵ
ĂƌĞĂĚĚƌĞƐƐŝŶŐ͘/ŶƚŚŝƐůĞƐƐŽŶ͕LJŽƵǁŝůůƚŚŝŶŬĂďŽƵƚǁŚĂƚĞůƐĞLJŽƵƐƟůůŶĞĞĚƚŽůĞĂƌŶ͕ŚŽǁLJŽƵǁŝůůŽďƚĂŝŶ
ƚŚŝƐŝŶĨŽƌŵĂƟŽŶ͕ĂŶĚƚŚĞŶĂĐƚƵĂůůLJŐŽŐĞƚŝƚ͘

/ĚĞŶƟĨLJzŽƵƌƐƐƵŵƉƟŽŶƐ
KŶĞŽĨƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚƐŬŝůůƐŽĨĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͕ŝƐďĞŝŶŐĂďůĞƚŽŝĚĞŶƟĨLJLJŽƵƌŽǁŶĂƐƐƵŵƉƟŽŶƐ͘
tĞŵĂŬĞĂƐƐƵŵƉƟŽŶƐĞǀĞƌLJĚĂLJ͘ĞŝŶŐĂǁĂƌĞŽĨŽƵƌĂƐƐƵŵƉƟŽŶƐĂŶĚĂĐƟǀĞůLJĐŽŶĚƵĐƟŶŐƐŵĂůůƚĞƐƚƐ
ƚŽƐĞĞǁŚĞƚŚĞƌƚŚĞLJĂƌĞƚƌƵĞŽƌŶŽƚ͕ŝƐĐƌŝƟĐĂůƚŽĂďƵƐŝŶĞƐƐ͛ƐŚĞĂůƚŚ͘dŽŽŵĂŶLJĂƐƐƵŵƉƟŽŶƐĐĂŶĐĂƵƐĞ
ĂďƵƐŝŶĞƐƐĞƐƚŽĨĂŝů͘dŚĞƌĞŝƐĂďŝŐĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶĂďƵƐŝŶĞƐƐĨĂŝůŝŶŐďĞĐĂƵƐĞŽĨŵĂŶLJĂƐƐƵŵƉƟŽŶƐ
ĂŶĚĂďƵƐŝŶĞƐƐƐƵĐĐĞĞĚŝŶŐďƵƚŚĂǀŝŶŐŵĂŶLJĂƐƐƵŵƉƟŽŶƐƚŚĂƚŚĂǀĞďĞĞŶŝŶƚĞŶƟŽŶĂůůLJƚĞƐƚĞĚĂŶĚƐŚŽǁŶ
ƚŽďĞǁƌŽŶŐ͘EŽƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨLJŽƵƌĐŽŵŵƵŶŝƚLJŝƐŐŽŝŶŐƚŽďĞƉĞƌĨĞĐƚĨƌŽŵƚŚĞďĞŐŝŶŶŝŶŐ͘ƚƚŚŝƐ
ŵŽŵĞŶƚ͕LJŽƵŚĂǀĞĂƐƐƵŵƉƟŽŶƐĂďŽƵƚLJŽƵƌĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJͲͲƐŽŵĞŽĨǁŚŝĐŚĂƌĞĐŽƌƌĞĐƚĂŶĚƐŽŵĞ
ŽĨǁŚŝĐŚĂƌĞůŝŬĞůLJŶŽƚ͘

&ŽƌĞdžĂŵƉůĞ͕ǁŚĞŶ^ĂŵĂŶĚ'ƌĂĐĞǁĞƌĞǁŽƌŬŝŶŐŽŶƚŚĞŝƌƚƌĂƐŚŵĂŶĂŐĞŵĞŶƚŝĚĞĂ͕ƚŚĞLJƌĞĂůŝnjĞĚƚŚĞLJ
ŵĂĚĞƚŚĞĂƐƐƵŵƉƟŽŶƚŚĂƚƐŵĂůůďƵƐŝŶĞƐƐŽǁŶĞƌƐĚŽŶ͛ƚƵŶĚĞƌƐƚĂŶĚƚŚĞŝŵƉŽƌƚĂŶĐĞŽĨƐĂŶŝƚĂƟŽŶĂŶĚ
ƌĞĐLJĐůŝŶŐ͘ŌĞƌƚĂůŬŝŶŐƚŽŵĂŶLJƐŵĂůůďƵƐŝŶĞƐƐŽǁŶĞƌƐ͕ŚŽǁĞǀĞƌ͕ƚŚĞLJƌĞĂůŝnjĞĚƚŚĂƚƚŚŝƐŝƐŶŽƚƚƌƵĞ͘^ŵĂůů
ďƵƐŝŶĞƐƐŽǁŶĞƌƐƵŶĚĞƌƐƚĂŶĚƚŚĞŝŵƉŽƌƚĂŶĐĞŽĨƌĞĐLJĐůŝŶŐďƵƚƐŝŵƉůLJĚŽŶ͛ƚŚĂǀĞƚŚĞƟŵĞƚŽĚŽŝƚ͘dŚŝƐ

62 | T hinking | <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ
ƌĞĂůŝnjĂƟŽŶĐŽŵƉůĞƚĞůLJĐŚĂŶŐĞĚ^ĂŵĂŶĚ'ƌĂĐĞ͛ƐĂƉƉƌŽĂĐŚ͘ĞĨŽƌĞ͕ƚŚĞLJƚŚŽƵŐŚƚƚŚĞLJǁĞƌĞŐŽŝŶŐƚŽƌƵŶ
ĂŶĂǁĂƌĞŶĞƐƐĐĂŵƉĂŝŐŶĂƐƚŚĞLJǁĞƌĞĚĞĂůŝŶŐǁŝƚŚĂƉƌŽďůĞŵŽĨĂǁĂƌĞŶĞƐƐĂŶĚĞĚƵĐĂƟŽŶĂďŽƵƚƚŚĞ
ŝŵƉŽƌƚĂŶĐĞŽĨƌĞĐLJĐůŝŶŐďƵƚŶŽǁ͕ƚŚĞLJƌĞĂůŝnjĞƚŚĂƚƚŚĞLJĚŽŶ͛ƚŶĞĞĚƚŽĚŽƚŚŝƐ͘^ĂŵĂŶĚ'ƌĂĐĞŵĂĚĞĂ
ǁƌŽŶŐĂƐƐƵŵƉƟŽŶďƵƚďĞĐĂƵƐĞƚŚĞLJǁĞƌĞĂďůĞƚŽĐŽƌƌĞĐƚŝƚ͕ƚŚĞLJǁĞƌĞĂďůĞƚŽƌƵŶŝŶƚĞƌǀŝĞǁƐĂƐĂƐŵĂůů
ƚĞƐƚĂŶĚŵŽǀĞŽŶǁŝƚŚĂƐƚƌŽŶŐĞƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞŝƌĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJ͘

Exercise 5.4: DLJƐƐƵŵƉƟŽŶƐ

KŶ ƚŚĞ ůŝŶĞƐ ďĞůŽǁ͕ ŝĚĞŶƟĨLJ ƚŚƌĞĞ ŬĞLJ ĂƐƐƵŵƉƟŽŶƐ LJŽƵ ŚĂǀĞ ƌŝŐŚƚ ŶŽǁ ĂďŽƵƚ LJŽƵƌ ĂƌĞĂ ŽĨ
ŽƉƉŽƌƚƵŶŝƚLJ͘dŚĞŶŐĞŶĞƌĂƚĞŝĚĞĂƐŽŶŚŽǁLJŽƵŵŝŐŚƚƚĞƐƚƚŚĞƐĞĂƐƐƵŵƉƟŽŶƐ͘

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<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ | T hinking | 63
 'ĂƚŚĞƌŝŶĨŽƌŵĂƟŽŶ
KŶĞŽĨƚŚĞďĞƐƚǁĂLJƐƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞŶĞĞĚƐŽĨƚŚĞĐŽŵŵƵŶŝƚLJĂŶĚŚŽǁƚŽďĞƐƚĂĚĚƌĞƐƐƚŚŽƐĞŶĞĞĚƐ
ŝƐƚŽĂƐŬƚŚŽƐĞǁŚŽĂƌĞŵŽƐƚĞīĞĐƚĞĚ͗ƚŚĞƉĞŽƉůĞŽĨƚŚĞĐŽŵŵƵŶŝƚLJ͘ŽƚŚŝƐƚŚƌŽƵŐŚŝŶƚĞƌǀŝĞǁŝŶŐƚŚĞŵ
ďŽƚŚĨŽƌŵĂůůLJĂŶĚŝŶĨŽƌŵĂůůLJĂŶĚƚŚĞŶĂŶĂůLJnjŝŶŐƚŚĞŝƌƌĞƐƉŽŶƐĞƐƚŽƌĞĮŶĞLJŽƵƌƐƚĂƚĞŵĞŶƚƐŽĨĂƌĞĂƐŽĨ
ŽƉƉŽƌƚƵŶŝƚLJ͘

ĞĨŽƌĞŝŶƚĞƌǀŝĞǁ͕ƚŚŝŶŬĂďŽƵƚǁŚĂƚƋƵĞƐƟŽŶƐLJŽƵǁĂŶƚƚŽĂƐŬ͘ƵƌŝŶŐƚŚĞŝŶƚĞƌǀŝĞǁ͕ƚĂŬĞŶŽƚĞƐ͕ƐŬĞƚĐŚ͕
Žƌ ĞǀĞŶ ƚĂŬĞ ƉŝĐƚƵƌĞƐ͘ ŌĞƌ ƚŚĞ ŝŶƚĞƌǀŝĞǁ͕ ĐŝƌĐůĞ ŬĞLJ ŝŶƐŝŐŚƚƐ LJŽƵ ůĞĂƌŶĞĚ ĨƌŽŵ ƚŚĞ ŝŶƚĞƌǀŝĞǁ͘ ŌĞƌ
ĐŽŵƉůĞƟŶŐĂůůƚŚĞŝŶƚĞƌǀŝĞǁƐ͕LJŽƵǁŝůůǁĂŶƚƚŽŐŽďĂĐŬƚŚƌŽƵŐŚLJŽƵƌŶŽƚĞƐĂŶĚŝĚĞŶƟĨLJĐŽŵŵŽŶƚŚĞŵĞƐ
ŽƌƚƌĞŶĚƐĨƌŽŵLJŽƵƌŝŶƚĞƌǀŝĞǁƐ͘zŽƵǁŝůůƚĂŬĞĂůůƚŚĞŝŶĨŽƌŵĂƟŽŶLJŽƵŚĂǀĞĐĂƉƚƵƌĞĚĂŶĚŐƌŽƵƉŝƚŝŶƚŽ
ĐĂƚĞŐŽƌŝĞƐƚŚĂƚŵĂŬĞƐĞŶƐĞ͘dŚŝƐǁŝůůďĞŝŵƉŽƌƚĂŶƚĂƐŝƚǁŝůůůĞĂĚƵƉƚŽLJŽƵƌĂďŝůŝƚLJƚŽĚĞĮŶĞĂƐƚƌŽŶŐĂƌĞĂ
ŽĨŽƉƉŽƌƚƵŶŝƚLJĨŽƌĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘

dŚĞƌĞĂƌĞƚŚƌĞĞŵĂŝŶŵĞƚŚŽĚƐƚŽůĞĂƌŶĂďŽƵƚƉĞŽƉůĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͗ŽďƐĞƌǀĞ͕ĂƐŬ͕ĂŶĚƚƌLJ͘

Observe. ŐƌĞĂƚǁĂLJƚŽƐƚĂƌƚůĞĂƌŶŝŶŐĂďŽƵƚLJŽƵƌĐŽŵƉĂŶLJŝƐďLJŽďƐĞƌǀŝŶŐ͘&ŽƌĞdžĂŵƉůĞ͕'ƌĂĐĞĂŶĚ^Ăŵ
ǁĂŶƚĞĚƚŽůĞĂƌŶŵŽƌĞĂďŽƵƚǁŚĂƚƐŵĂůůďƵƐŝŶĞƐƐŽǁŶĞƌƐĚŝĚǁŝƚŚƚŚĞŝƌƚƌĂƐŚƐŽƚŚĞLJĂƐŬĞĚƚŽƐŚĂĚŽǁĂ
ƐŚŽƉŽǁŶĞƌĨŽƌĂĚĂLJ͘zŽƵǁŝůůďĞƐƵƌƉƌŝƐĞĚǁŚĂƚLJŽƵůĞĂƌŶǁŚĞŶLJŽƵ

Ask.ƐŬŝŶŐƋƵĞƐƟŽŶƐŝƐĂŶŽƚŚĞƌŐƌĞĂƚǁĂLJƚŽŐĞƚƐƉĞĐŝĮĐĂŶƐǁĞƌƐ͘'ĞŶĞƌĂůůLJ͕ƚŚĞĨŽůůŽǁŝŶŐĂƌĞŐŽŽĚƟƉƐ
ĨŽƌŝŶƚĞƌǀŝĞǁŝŶŐ͗
• ƐŬƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞŝŶƚĞƌǀŝĞǁŝŶŐƚŽƚĞůůLJŽƵƐƚŽƌŝĞƐƚŚĂƚƐŚĂƌĞĞdžĂŵƉůĞƐŽĨƚŚĞŝƌƌĞĂĐƟŽŶƐŝŶ
ƐŝƚƵĂƟŽŶƐ͘
• ůǁĂLJƐĂƐŬ͞ǁŚLJ͍͟ĞǀĞŶǁŚĞŶLJŽƵƚŚŝŶŬLJŽƵŬŶŽǁƚŚĞĂŶƐǁĞƌ͘
• ŽŶ͛ƚƐƵŐŐĞƐƚĂŶƐǁĞƌƐƚŽƚŚĞƋƵĞƐƟŽŶƐLJŽƵĂƌĞĂƐŬŝŶŐͲůĞƚƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞŝŶƚĞƌǀŝĞǁŝŶŐ
ƐƉĞĂŬĮƌƐƚ͘
• DĂŬĞƐƵƌĞLJŽƵƌƋƵĞƐƟŽŶƐĂƌĞŶŽƚ͞LJĞƐŽƌŶŽ͟ƋƵĞƐƟŽŶƐͲĂůůƐŚŽƵůĚďĞŽƉĞŶͲĞŶĚĞĚůĞƫŶŐƚŚĞ
ƉĞƌƐŽŶLJŽƵĂƌĞŝŶƚĞƌǀŝĞǁŝŶŐƐŚĂƌĞĂƐŵƵĐŚĂƐƚŚĞLJůŝŬĞ͘

Try. dŚŝƐ ĐĂŶ ďĞ Ă ŐƌĞĂƚ ǁĂLJ ƚŽ ƚƌLJ ƚŽ ƵŶĚĞƌƐƚĂŶĚ ǁŚĂƚ ƚŚŝŶŐƐ ĂƌĞ ůŝŬĞ ĨƌŽŵ ƐŽŵĞŽŶĞ ĞůƐĞ͛Ɛ ƉŽŝŶƚ ŽĨ
ǀŝĞǁ͘tŚĞŶĂƐŬŝŶŐƋƵĞƐƟŽŶƐĂŶĚŽďƐĞƌǀŝŶŐ͕LJŽƵĂƌĞƐƟůůǀĞƌLJŵƵĐŚůŽŽŬŝŶŐĂƚLJŽƵƌĐŽŵŵƵŶŝƚLJƚŚƌŽƵŐŚ
LJŽƵƌŽǁŶůĞŶƐĞƐ͘dƌLJŝŶŐƚŽĚŽƐŽŵĞƚŚŝŶŐƚŚĂƚLJŽƵĐŽŵŵƵŶŝƚLJĚŽĞƐĐĂŶĨŽƌĐĞLJŽƵŝŶƚŽƚŚĞŝƌƐŚŽĞƐ͘&Žƌ
ĞdžĂŵƉůĞ͕ǁŚĞŶ'ƌĂĐĞĂŶĚ^ĂŵǁĂŶƚĞĚƚŽůĞĂƌŶŵŽƌĞĂďŽƵƚǁŚĂƚŝƚŝƐůŝŬĞƚŽďĞĂƐŵĂůůďƵƐŝŶĞƐƐŽǁŶĞƌ͕
ƚŚĞLJĂƐŬĞĚƚŽƐŚĂĚŽǁĂůŽĐĂůƐŚŽƉŽǁŶĞƌĂŶĚŽīĞƌĞĚƚŽƌĞĐLJĐůĞŚŝƐƚƌĂƐŚĨŽƌŚŝŵ͘/ŶĚŽŝŶŐƚŚŝƐ͕ƚŚĞLJ
ŚĂĚƚŽĐĂƌƌLJƚŚĞƚƌĂƐŚĂůŽŶŐĚŝƐƚĂŶĐĞƚŽƚŚĞƌĞĐLJĐůŝŶŐĨĂĐŝůŝƚLJĂŶĚƌĞĂůŝnjĞĚĨŽƌƚŚĞĮƌƐƚƟŵĞũƵƐƚŚŽǁ
ŝŶĐŽŶǀĞŶŝĞŶƚŝƚǁĂƐƚŽƉƌŽƉĞƌůLJĚŝƐƉŽƐĞŽĨƚŚĞƚƌĂƐŚ͘

Exercise 5.5: 'ĂƚŚĞƌŝŶŐ/ŶĨŽƌŵĂƟŽŶ

/ŶƚĞƌǀŝĞǁ Ăƚ ůĞĂƐƚ ĞŝŐŚƚ ƉĞŽƉůĞ ŝŶ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͘ ĞĨŽƌĞ LJŽƵ ďĞŐŝŶ͕ ŝĚĞŶƟĨLJ ǁŚĂƚ ƋƵĞƐƟŽŶƐ
LJŽƵŵŝŐŚƚǁĂŶƚƚŽĂƐŬ͍tŚĂƚĚŽƚŚĞLJƚŚŝŶŬƚŚĞĐŽŵŵƵŶŝƚLJŶĞĞĚƐ͍tŚĂƚŝƐŵŝƐƐŝŶŐ͍tŚĂƚĂƌĞ
ƉƌŽďůĞŵƐƚŚĞLJĂƌĞŚĂǀŝŶŐ͍ZĞĐŽƌĚŶŽƚĞƐĨƌŽŵƚŚĞĐŽŶǀĞƌƐĂƟŽŶƐLJŽƵŚĂǀĞďĞůŽǁ͘

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64 | T hinking | <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ
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_______________________________________ /ŶƚĞƌǀŝĞǁĚŝīĞƌĞŶƚƉĞŽƉůĞ
_______________________________________ ŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJǁŚŽ
ĞdžƉĞƌŝĞŶĐĞƚŚĞŶĞĞĚƐLJŽƵŚĂǀĞ
_______________________________________ ŝĚĞŶƟĮĞĚ͘DĂŬĞƐƵƌĞLJŽƵŐĞƚ
ŵĂŶLJƉĞƌƐƉĞĐƟǀĞƐƚŽŚĞůƉLJŽƵ
_______________________________________ ƵŶĚĞƌƐƚĂŶĚĂůůĂƐƉĞĐƚƐŽĨLJŽƵƌ
ĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJ͘
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66 | T hinking | <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ
'ƌŽƵƉŝŶĨŽƌŵĂƟŽŶ
EŽǁ ƚŚĂƚ LJŽƵ ŚĂǀĞ ŐĂƚŚĞƌĞĚ ŝŶĨŽƌŵĂƟŽŶ ĂďŽƵƚ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ ĂŶĚ ƚŚĞŝƌ ŶĞĞĚƐ ƐƉĞĐŝĮĐ ƚŽ ĂŶ ĂƌĞĂ
ŽĨ ŽƉƉŽƌƚƵŶŝƚLJ͕ ŝƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ ŐƌŽƵƉ ƚŚĂƚ ŝŶĨŽƌŵĂƟŽŶ ĂŶĚ ĚĞĐŝĚĞ ŚŽǁ ŝƚ ŝŵƉĂĐƚƐ LJŽƵƌ ĐƵƌƌĞŶƚ
ƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨLJŽƵƌĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJ͘'ŽƚŚƌŽƵŐŚLJŽƵƌŶŽƚĞƐĂŶĚĐŝƌĐůĞƚŚĞƚŚŝŶŐƐƚŚĂƚLJŽƵƚŚŝŶŬ
ĂƌĞ ƐŝŐŶŝĮĐĂŶƚ͕ ƐƵƌƉƌŝƐŝŶŐ͕ Žƌ ĚŝīĞƌĞŶƚ ƚŚĂŶ ǁŚĂƚ LJŽƵ ĞdžƉĞĐƚĞĚ͘ 'ƌŽƵƉ ƚŚĞ ŶŽƚĞƐ LJŽƵ ŚĂǀĞ ĐŝƌĐůĞĚ ƚŽ
ŝĚĞŶƟĨLJƚŚĞŵĞƐŽƌƉĂƩĞƌŶƐŝŶLJŽƵƌĮŶĚŝŶŐƐ͘&ŽƌĞdžĂŵƉůĞ͕ŽŶĞƚŚĞŵĞƚŚĂƚ^ĂŵĂŶĚ'ƌĂĐĞĨŽƵŶĚƚŚƌŽƵŐŚ
ƚŚĞŝƌŝŶƚĞƌǀŝĞǁƐǁĂƐƚŚĂƚƐŵĂůůďƵƐŝŶĞƐƐŽǁŶĞƌƐĨĞĞůůŝŬĞƚƌĂƐŚƚĂŬĞƐĂǁĂLJĨƌŽŵĐƵƐƚŽŵĞƌƐǀŝƐŝƟŶŐƚŚĞŝƌ
ƐŚŽƉ͘EŽǁŝƚŝƐLJŽƵƌƚƵƌŶƚŽŝĚĞŶƟĨLJŝŵƉŽƌƚĂŶƚƚŚĞŵĞƐŝŶLJŽƵƌƌĞƐĞĂƌĐŚĂďŽƵƚLJŽƵƌĐŽŵŵƵŶŝƚLJ͘

Exercise 5.6: 'ƌŽƵƉŝŶŐ/ŶĨŽƌŵĂƟŽŶ

/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ĚƌĂǁĐŽŵŵŽŶƚŚĞŵĞƐĨƌŽŵLJŽƵƌŝŶƚĞƌǀŝĞǁƐ͘ƌĞƚŚĞƌĞĂŶLJĞŵĞƌŐŝŶŐƉĂƩĞƌŶƐ
ŝŶLJŽƵƌĮŶĚŝŶŐƐ͍tŚĂƚƐƵƌƉƌŝƐĞĚLJŽƵ͍tŚĂƚŝƐĚŝīĞƌĞŶƚƚŚĂŶĞdžƉĞĐƚĞĚ͍,ŽǁĚŽĞƐǁŚĂƚLJŽƵŚĂǀĞ
ůĞĂƌŶĞĚŝŵƉĂĐƚLJŽƵƌĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJ͍

<ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ | T hinking | 67
 EŽǁ ƚŚĂƚ LJŽƵ ŚĂǀĞ Ă ďĞƩĞƌ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͕ ŝƚ ŝƐ ƟŵĞ ƚŽ ƌĞĂƐƐĞƐƐ ƚŚĞ ĂƌĞĂƐ ŽĨ
ŽƉƉŽƌƚƵŶŝƚLJLJŽƵĚĞǀĞůŽƉĞĚƉƌĞǀŝŽƵƐůLJ͘ŶĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJŝƐŶŽƚĂĚĞƐĐƌŝƉƟŽŶŽĨĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ
ŝĚĞĂͲͲŝŶƐƚĞĂĚŝƚŝƐĂĚĞƐĐƌŝƉƟŽŶŽĨǁŚĂƚŝƐŶĞĞĚĞĚŽƌĚĞƐŝƌĞĚ͘ƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJĂƌĞŝŵƉŽƌƚĂŶƚďĞĐĂƵƐĞ
ƚŚĞLJǁŝůůŐƵŝĚĞLJŽƵůĂƚĞƌǁŚĞŶŝƚŝƐƟŵĞƚŽŐĞŶĞƌĂƚĞŝĚĞĂƐĨŽƌĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŽŵĞĞƚƚŚĂƚŶĞĞĚ͘

Exercise 5.7: ZĞĮŶŝŶŐƌĞĂƐŽĨKƉƉŽƌƚƵŶŝƚLJ

ZĞǀŝĞǁLJŽƵƌŶŽƚĞƐĨŽƌLJŽƵƌŝŶƚĞƌǀŝĞǁƐĂŶĚƌĞĮŶĞƚŚĞĨŽƵƌĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJĨŽƌLJŽƵƌĐŽŵŵƵŶŝƚLJ
ƚŚĂƚLJŽƵǁƌŽƚĞƉƌĞǀŝŽƵƐůLJ͘

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϭ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϮ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϯ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϰ͗

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Lesson 5.3: ŽŵƉůĞƟŶŐƚŚĞWŝĐƚƵƌĞ

EŽǁƚŚĂƚLJŽƵŚĂǀĞĚĞǀĞůŽƉĞĚƐƚĂƚĞŵĞŶƚƐĂďŽƵƚĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽĚŝŐĚĞĞƉĞƌŝŶƚŽ
ĞĂĐŚŽĨƚŚĞƐĞŽƉƉŽƌƚƵŶŝƟĞƐ͘/ŶŽƌĚĞƌĨŽƌLJŽƵƚŽďĞĂďůĞƚŽůĂƚĞƌŐĞŶĞƌĂƚĞŝĚĞĂƐƚŽŵĞĞƚƚŚĞƐĞŶĞĞĚƐǁŝƚŚ
ĂŶŝŶŶŽǀĂƟǀĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͕LJŽƵǁŝůůŶĞĞĚƚŽŚĂǀĞƚŽŵĂŬĞƐƵƌĞLJŽƵŚĂǀĞƚŚŽƌŽƵŐŚůLJƌĞƐĞĂƌĐŚĞĚ
ĞĂĐŚŽĨƚŚĞƐĞĂŶĚƚŚĂƚLJŽƵƵŶĚĞƌƐƚĂŶĚǁŚLJĞĂĐŚŽĨƚŚĞƐĞŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͘KŶĞ
ŵĞƚŚŽĚƚŽĐĂƉƚƵƌĞǁŚĂƚLJŽƵŬŶŽǁĂďŽƵƚĞĂĐŚĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJ͕ŝƐƚŽĐƌĞĂƚĞĂŶĞŵƉĂƚŚLJŵĂƉǁŚŝĐŚ
ĚĞƐĐƌŝďĞƐ ŝŶ ĚĞƚĂŝů ƚŚĞ ƉĞƌƐŽŶ ǁŚŽ ŚĂƐ ƚŚĞ ŶĞĞĚ͘ ŶŽƚŚĞƌ ŵĞƚŚŽĚ ŝƐ ĐƌĞĂƟŶŐ Ă ũŽƵƌŶĞLJ ŵĂƉ ǁŚŝĐŚ
ĚĞƐĐƌŝďĞƐƚŚĞĞdžƉĞƌŝĞŶĐĞƚŚĞƉĞƌƐŽŶŚĂƐǁŝƚŚƚŚĞŶĞĞĚ͘

tŚĂƚŝƐĂƉĞƌƐŽŶĂ͍ƉĞƌƐŽŶĂĚĞƐĐƌŝďĞƐŚŽǁƚŚĞƉĞƌƐŽŶǁŚŽƐĞŶĞĞĚLJŽƵĂƌĞƐŽůǀŝŶŐƚLJƉŝĐĂůůLJƚŚŝŶŬƐ͕ĨĞĞůƐ͕
ƚĂůŬƐ͕ĂŶĚĂĐƚƐ͘DĂŬŝŶŐĂƉĞƌƐŽŶĂĂůůŽǁƐLJŽƵƚŽƌĞůĂƚĞŵŽƌĞĐůŽƐĞůLJǁŝƚŚƚŚĞƉĞƌƐŽŶŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJ
ǁŚŽƐĞŶĞĞĚLJŽƵĂƌĞƚƌLJŝŶŐƚŽƐŽůǀĞĂŶĚĨŽƌĐĞƐLJŽƵƚŽƐƚĞƉŝŶƚŽƚŚĞŝƌƐŚŽĞƐ͘&ŽƌĞdžĂŵƉůĞ͕^ĂŵĂŶĚ'ƌĂĐĞ
ŵĂĚĞĂƉĞƌƐŽŶĂŽĨƐŵĂůůďƵƐŝŶĞƐƐŽǁŶĞƌƐǁŚŽĐŽƵůĚďĞŶĞĮƚĨƌŽŵĮŶĚŝŶŐǁĂLJƐƚŽŐĞƚĂƌŝĚŽĨƚŚĞŝƌƚƌĂƐŚ͘

68 | T hinking | <ŶŽǁŝŶŐDLJŽŵŵƵŶŝƚLJ
dŚĞLJŶĂŵĞĚƚŚĞŝƌƉĞƌƐŽŶĂ͞ƵƐŝŶĞƐƐŽď͕͟ĚƌĞǁĂƉŝĐƚƵƌĞŽĨŚŝŵ͕ĂŶĚĚĞƐĐƌŝďĞĚŚŝŵĂƐƐŽŵĞŽŶĞǁŚŽ
ǁŽƌŬƐǀĞƌLJŚĂƌĚĂŶĚĞĸĐŝĞŶƚůLJĂƐƚŚĞŽŶůLJƉĞƌƐŽŶǁŚŽŬĞĞƉƐŚŝƐďƵƐŝŶĞƐƐƌƵŶŶŝŶŐ͘,ĞĐĂƌĞƐĂďŽƵƚŚŝƐ
ĐƵƐƚŽŵĞƌĞdžƉĞƌŝĞŶĐĞĂŶĚŚĞĐĂƌĞƐĂďŽƵƚƉƌŽƉĞƌƚƌĂƐŚĚŝƐƉŽƐĂůďƵƚŚĞŚĂƐŶŽƟŵĞƚŽĚŽŝƚŚŝŵƐĞůĨ͘dŚŝƐ
ŚĞůƉĞĚ'ƌĂĐĞĂŶĚ^ĂŵďĞƩĞƌƵŶĚĞƌƐƚĂŶĚŚŽǁƚŽĚĞƐŝŐŶĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĨŽƌ͞ƵƐŝŶĞƐƐŽď͘͟

tŚĂƚŝƐĂũŽƵƌŶĞLJŵĂƉ͍ũŽƵƌŶĞLJŵĂƉŝƐĂǁĂLJƚŚĂƚLJŽƵĐĂŶƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞƚƌLJŝŶŐ
ƚŽŚĞůƉĞdžƉĞƌŝĞŶĐĞƐƚŚĞŝƌŶĞĞĚƐ͘&ŽƌĞdžĂŵƉůĞ͕'ƌĂĐĞĂŶĚ^ĂŵĚƌĞǁĂŵĂƉŽĨƚŚĞƉƌŽĐĞƐƐƚŚĂƚ͞ƵƐŝŶĞƐƐ
Žď͟ŚĂƐƚŽŐŽƚŚƌŽƵŐŚŝŶŽƌĚĞƌƚŽĚŝƐƉŽƐĞŽĨŚŝƐƚƌĂƐŚ͘ƌĂǁŝŶŐƚŚĞŵĂƉŚĞůƉĞĚƚŚĞŵƌĞĂůŝnjĞĂůůƚŚĞ
ĚŝīĞƌĞŶƚ ǁĂLJƐ ƚŚĂƚ Žď ƚŚŝŶŬƐ ĂďŽƵƚ ƚƌĂƐŚ ĚŝƐƉŽƐĂů ĂŶĚ Ăůů ƚŚĞ ǁĂLJƐ ŝŶ ǁŚŝĐŚ ŚŝƐ ĐƵƌƌĞŶƚ ƉƌŽĐĞƐƐ ŝƐ
ƉĂŝŶĨƵůĨŽƌŚŝŵ͘

Exercise 5.8: Going Deeper

/ƚ͛ƐŝŵƉŽƌƚĂŶƚƚŚĂƚLJŽƵĂƌĞĂďůĞƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞǁŚŽůĞĐŚĂůůĞŶŐĞLJŽƵƌƉŽƚĞŶƟĂůĐƵƐƚŽŵĞƌŝƐ
ĨĂĐŝŶŐ͘&ŽƌĞĂĐŚŽĨLJŽƵƌĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJ͕ŝĚĞŶƟĨLJǁŚŽŚĂƐƚŚĞŶĞĞĚĂŶĚĚƌĂǁƚŚĂƚƉĞƌƐŽŶ͘
ĂƐĞĚŽŶƚŚĞŝŶƚĞƌǀŝĞǁƐLJŽƵŚĂǀĞĐŽŶĚƵĐƚĞĚ͕ŝŶĐůƵĚĞĚĞƚĂŝůƐĂďŽƵƚǁŚĂƚƚŚĂƚƉĞƌƐŽŶƐĂLJƐ͕ĚŽĞƐ͕
ƚŚŝŶŬƐ͕ĂŶĚĨĞĞůƐĂďŽƵƚƚŚĞƉƌŽďůĞŵƚŚĂƚƚŚĞLJŶĞĞĚƐŽůǀĞĚ͘/ƚ͛ƐĞƋƵĂůůLJŝŵƉŽƌƚĂŶƚƚŚĂƚLJŽƵĂƌĞ
ĂďůĞ ƚŽ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ͕ ďĞŚĂǀŝŽƌƐ ĂŶĚ ĂĐƟǀŝƟĞƐ ŽĨ LJŽƵƌ ƉŽƚĞŶƟĂů ĐƵƐƚŽŵĞƌ͘ hƐĞ
ƚŚĞƐƉĂĐĞďĞůŽǁƚŽĚƌĂǁĂŶŝŵĂŐĞŽĨLJŽƵƌŽďƐĞƌǀĂƟŽŶƐŽĨŚŽǁLJŽƵƌƉŽƚĞŶƟĂůĐƵƐƚŽŵĞƌďĞŚĂǀĞƐ
ĞĂĐŚĚĂLJŝŶƌĞŐĂƌĚƐƚŽƚŚĞĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJďĂƐĞĚŽŶƚŚĞŝŶƚĞƌǀŝĞǁƐLJŽƵĐŽŶĚƵĐƚĞĚ͘

/Ŷ ŽƌĚĞƌ ƚŽ ŐĞƚ ƚŚĞ ŝŶĨŽƌŵĂƟŽŶ ĨŽƌ ƚŚŝƐ͕ LJŽƵ ŵĂLJ ŶĞĞĚ ƚŽ ŐŽ ďĂĐŬ ŽƵƚ ĂŶĚ ĐŽŶĚƵĐƚ ŵŽƌĞ
ŝŶƚĞƌǀŝĞǁƐͲͲŽďƐĞƌǀĞŵŽƌĞ͕ůŝƐƚĞŶŵŽƌĞ͕ƚƌLJŵŽƌĞ͘zŽƵĐĂŶĞǀĞŶŚĂǀĞƚŚĞƉĞƌƐŽŶŝŶĞŶŐĂŐĞǁŝƚŚ
LJŽƵďLJĚƌĂǁŝŶŐǁŚĂƚƚŚĞLJƚŚŝŶŬ͘

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϭ͗

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:ŽƵƌŶĞLJDĂƉ͗

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 ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϮ͗

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Persona:

:ŽƵƌŶĞLJDĂƉ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϯ͗

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:ŽƵƌŶĞLJDĂƉ͗

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 ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϰ͗

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:ŽƵƌŶĞLJDĂƉ͗

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 ZĞŇĞĐƟŽŶ͗ My Community
,Žǁ ĚŽ ƚŚĞ ĂƌĞĂƐ ŽĨ ŽƉƉŽƌƚƵŶŝƚLJ LJŽƵ ŚĂǀĞ ŶŽǁ ĚŝīĞƌ ĨƌŽŵ ƚŚĞ ŽŶĞƐ LJŽƵ ƐƚĂƌƚĞĚ ǁŝƚŚ Ăƚ ƚŚĞ
ďĞŐŝŶŶŝŶŐŽĨƚŚĞĐŚĂƉƚĞƌ͍,ŽǁĚŽƚŚĞĂƌĞĂƐŽĨŽƉƉŽƌƚƵŶŝƚLJLJŽƵŚĂǀĞĚĞǀĞůŽƉĞĚĐŽŶŶĞĐƚǁŝƚŚ
LJŽƵƌĐŽƌĞǀĂůƵĞƐĂŶĚǁŚĂƚLJŽƵĂƌĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͍

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_______________________________________ ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
_______________________________________ ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
_______________________________________ ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
_______________________________________ ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘

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>> Generating
Great Ideas

6
/ŶƚĞƌĞƐƚƐ͕ZĞůĂƟŽŶƐŚŝƉƐ͕ĂŶĚŶǀŝƌŽŶŵĞŶƚ
ƌĞĂƟŶŐ/ĚĞĂƐ
ĞǀĞůŽƉŝŶŐ/ĚĞĂƐ
/ĚĞĂ&ĞĂƐŝďŝůŝƚLJ
ZĞĮŶĞzŽƵƌ/ĚĞĂ
/ŶƚŚŝƐůĞƐƐŽŶ͕LJŽƵǁŝůůƵƐĞƚŚĞŝŶĨŽƌŵĂƟŽŶLJŽƵŚĂǀĞůĞĂƌŶĞĚĂďŽƵƚLJŽƵƌƌĞůĂƟŽŶƐŚŝƉƐ͕ƐŬŝůůƐ͕
ĂŶĚƌĞƐŽƵƌĐĞƐƚŽĚĞǀĞůŽƉĂŶĚĞǀĂůƵĂƚĞLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

ZĂǁ/ĚĞĂƐ͗/ĚĞĂƐƚŚĂƚĂƌĞƐƟůůŝŶ
ƚŚĞƉƌŽĐĞƐƐŽĨďĞĐŽŵŝŶŐĐŽŵƉůĞƚĞ
ŝĚĞĂƐ͘
/ĚĞĂƚĞ͗ƐLJƐƚĞŵĨŽƌŐĞŶĞƌĂƟŶŐĂŶĚ
ĐƌĞĂƟŶŐŶĞǁŝĚĞĂƐ͘

WŽƐŝƟŽŶŝŶŐ͗dŚĞƉƌŽĐĞƐƐŽĨƐĞƫŶŐĂ
ƐƉĞĐŝĮĐƉĞƌĐĞƉƟŽŶŽĨLJŽƵƌƉƌŽĚƵĐƚ
ŝŶLJŽƵƌĐƵƐƚŽŵĞƌ͛ƐŵŝŶĚƐĞƚ;ƚŚŝŶŬ
ĂďŽƵƚƚŚĞƋƵĂůŝƚLJ͕ƉƌŝĐĞ͕ƐĞƌǀŝĐĞ͕ĂŶĚ
ŽƚŚĞƌƐƚƌĞŶŐƚŚƐŽĨLJŽƵƌďƵƐŝŶĞƐƐŽƌ
ƉƌŽĚƵĐƚͿ͘
Lesson 6.1: /ŶƚĞƌĞƐƚƐ͕ZĞůĂƟŽŶƐŚŝƉƐ͕ĂŶĚŶǀŝƌŽŶŵĞŶƚ
'ƌĞĂƚŝĚĞĂƐĐĂŶĐŽŵĞĨƌŽŵŵĂŶLJĚŝīĞƌĞŶƚƉůĂĐĞƐ͘dŚĞLJĐĂŶĐŽŵĞĨƌŽŵƌĂŶĚŽŵƚŚŽƵŐŚƚƐĂďŽƵƚĂƚŽƉŝĐ͕Ă
ĚĞƐŝƌĞƚŽĂƩĞŵƉƚƐŽŵĞƚŚŝŶŐŶĞǁ͕ŽƌƚŚĞĚƌŝǀĞƚŽĐƌĞĂƚĞƐŽŵĞƚŚŝŶŐďĞƩĞƌĨŽƌŽƚŚĞƌƐ͘dŚĞĐLJĐůĞŽĨƚƵƌŶŝŶŐ
ƚŚĞƐĞƚŚŽƵŐŚƚƐŝŶƚŽĂǀŝƐŝŽŶ͕ĂŶĚǀŝƐŝŽŶƐŝŶƚŽĂƌĞĂůŝƚLJ͕ŝƐĂƉƌŽĐĞƐƐǁŚŝĐŚŵĂLJƚĂŬĞŵĂŶLJĂƩĞŵƉƚƐĂŶĚ
ŵƵĐŚƚŚŽƵŐŚƚ͘ĞǀĞůŽƉŝŶŐĂďƵƐŝŶĞƐƐŝĚĞĂĐĂŶďĞǀĞƌLJŝŶƟŵŝĚĂƟŶŐĞǀĞŶĨŽƌƚŚĞŵŽƐƚĚƌŝǀĞŶŝŶĚŝǀŝĚƵĂů
ďĞĐĂƵƐĞŽĨŚŽǁƵŶĐĞƌƚĂŝŶŝƚĐĂŶďĞƚŚĂƚLJŽƵŚĂǀĞƚŚĞ͞ƌŝŐŚƚ͟ŝĚĞĂ͘ůƚŚŽƵŐŚŝƚŵĂLJƐĞĞŵĚŝĸĐƵůƚƚŽ
ĐŽŵĞƵƉǁŝƚŚĂŐƌĞĂƚŝĚĞĂ͕ƚŚĞĨŽůůŽǁŝŶŐƐĞĐƟŽŶǁŝůůŚĞůƉLJŽƵƚŽŝĚĞŶƟĨLJƉŽƚĞŶƟĂůŽƉƉŽƌƚƵŶŝƟĞƐ͕ĂŶĚ
ŐŝǀĞLJŽƵĂŶƵŵďĞƌŽĨĂƉƉƌŽĂĐŚĞƐƚŽƵƐĞƚŽŐĞŶĞƌĂƚĞĂŐŽŽĚŝĚĞĂĨŽƌLJŽƵƌƐĞůĨĂŶĚLJŽƵƌĐŽŵŵƵŶŝƚLJ͘

tŚĞŶƚƌLJŝŶŐƚŽďĞĐƌĞĂƟǀĞĂŶĚƚŚŝŶŬŽĨŶĞǁŝĚĞĂƐƌĞŵĞŵďĞƌƚŚĂƚƚŚĞƌĞƌĞĂůůLJŝƐŶŽƐƵĐŚƚŚŝŶŐĂƐĂ͞ŶĞǁ
ŝĚĞĂ͘͟/ŶŶŽǀĂƟŽŶĂŶĚďƌĞĂŬƚŚƌŽƵŐŚĐŽŶĐĞƉƚƐĂƌĞƚŚĞƌĞƐƵůƚŽĨĂŶĞǁĐŽŶŶĞĐƟŽŶďĞƚǁĞĞŶĂůƌĞĂĚLJŬŶŽǁŶ
ŝĚĞĂƐ͘^ŽǁŚĞŶLJŽƵĂƌĞƚƌLJŝŶŐƚŽďĞĐƌĞĂƟǀĞ͕ŽŶĞŽĨƚŚĞďĞƐƚǁĂLJƐƚŽƐƚĂƌƚŝƐďLJůŽŽŬŝŶŐŝŶƐŝĚĞLJŽƵƌƐĞůĨ
ĂŶĚĂƚƚŚĞŶĞĞĚƐŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJͲͲLJŽƵŵĂLJƌĞĂůŝnjĞŶĞǁĐŽŶŶĞĐƟŽŶƐƚŚĂƚĐŽƵůĚƌĞƐƵůƚŝŶĂƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞŝĚĞĂǁŝƚŚŐƌĞĂƚƉŽƚĞŶƟĂů͘

Exercise 6.1: DĂŬŝŶŐŽŶŶĞĐƟŽŶƐ

/ŶƚŚĞƉƌĞǀŝŽƵƐĐŚĂƉƚĞƌƐ͕ǁĞ͛ǀĞĂůƌĞĂĚLJĚŝƐĐƵƐƐĞĚŚŽǁƐĞůĨŬŶŽǁůĞĚŐĞĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůĐŽŶƚĞdžƚ
ǁŝůůƉůĂLJĂůĂƌŐĞƌŽůĞŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚĂŶĚĞdžĞĐƵƟŽŶŽĨLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂ͘ĞůŽǁ͕ůŝƐƚLJŽƵƌ
ƉĂƐƐŝŽŶƐ͕ĐŽƌĞǀĂůƵĞƐ͕ĐŽŵŵƵŶŝƚLJŝƐƐƵĞƐ͕ĂŶĚƌĞůĂƟŽŶƐŚŝƉĂĸůŝĂƟŽŶƐ;ŬŶŽǁůĞĚŐĞŽƌũŽďƐŚĞůĚďLJ
ƚŚĞƉĞŽƉůĞŽŶLJŽƵƌŶĞƚǁŽƌŬƚƌĞĞ͘ͿŌĞƌĮůůŝŶŐŝŶƚŚĞĐŽůƵŵŶƐďĞůŽǁ͕ĚƌĂǁĂƌƌŽǁƐďĞƚǁĞĞŶƚŚŽƐĞ
ƚŚŝŶŐƐŝŶƚŚĞĚŝīĞƌĞŶƚĐŽůƵŵŶƐƚŚĂƚƐĞĞŵƌĞůĂƚĞĚƚŽĞĂĐŚŽƚŚĞƌŝŶƐŽŵĞǁĂLJ͘

# Core Values Skills & Passions Areas of ZĞůĂƟŽŶƐŚŝƉ

Opportunity

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 77
 Lesson 6.2: ƌĞĂƟŶŐ/ĚĞĂƐ
/ĚĞĂƟŽŶŝƐĂƚĞƌŵƵƐĞĚƚŽĚĞƐĐƌŝďĞŚŽǁŶĞǁŝĚĞĂƐĂƌĞŐĞŶĞƌĂƚĞĚ͘dŚŝƐůĞƐƐŽŶǁŝůůĞdžƉŽƐĞLJŽƵƚŽƚǁŽ
ĚŝīĞƌĞŶƚŝĚĞĂƟŽŶƉƌŽĐĞƐƐĞƐ͘dŚĞƐĞƉƌŽĐĞƐƐĞƐĂƌĞŶŽƚŐƵĂƌĂŶƚĞĞĚĂŶĚŶŽƚĚĞƐŝŐŶĞĚƚŽǁŽƌŬĞǀĞƌLJƟŵĞ͘
&ŽƌĞdžĂŵƉůĞ͕LJŽƵŵĂLJĮŶĚƚŚĂƚďƌĂŝŶƐƚŽƌŵŝŶŐǁŽƌŬĞĚǁĞůůŽŶĞĚĂLJďƵƚĚŝĚŶŽƚǁŽƌŬĂŶŽƚŚĞƌĚĂLJ͘/ƚ
ŝƐŝŵƉŽƌƚĂŶƚƚŽƚƌLJĞĂĐŚŽĨƚŚĞƐĞŝĚĞĂƟŽŶŵĞƚŚŽĚƐŽƵƚďĞĐĂƵƐĞƚŚĞLJŵŝŐŚƚůĞĂĚƚŽĚŝīĞƌĞŶƚŝŶƐŝŐŚƚƐ͘
ůƚŚŽƵŐŚƐŽŵĞŽĨƚŚĞƐĞƉƌŽĐĞƐƐĞƐŵŝŐŚƚŶŽƚǁŽƌŬĨŽƌLJŽƵƚŚŝƐƟŵĞ͕ƚŚĞLJŵĂLJďĞďĞŶĞĮĐŝĂůƚŽŬŶŽǁŝŶ
ƚŚĞĨƵƚƵƌĞ͘dŚĞƌĞĂƌĞŽƚŚĞƌǁĂLJƐƚŽĐƌĞĂƚĞĂŶĚŐĞŶĞƌĂƚĞƚŚĞƐĞŝĚĞĂƐ͕ĂŶĚƚŚĞƐĞĞdžĞƌĐŝƐĞƐǁŝůůŚŽƉĞĨƵůůLJ
ŚĞůƉLJŽƵƚŽĚĞǀĞůŽƉLJŽƵƌŽǁŶĂƉƉƌŽĂĐŚĞƐ͘hůƟŵĂƚĞůLJ͕ĞĂĐŚŵĞƚŚŽĚŝƐũƵƐƚƚƌLJŝŶŐƚŽŚĞůƉLJŽƵůŽŽŬĂƚƚŚĞ
ǁŽƌůĚŝŶĚŝīĞƌĞŶƚǁĂLJƐƐŽƚŚĂƚLJŽƵŵŝŐŚƚƐĞĞĂĐŽŶŶĞĐƟŽŶLJŽƵĚŝĚŶŽƚƐĞĞďĞĨŽƌĞ͘

ƐLJŽƵďĞŐŝŶLJŽƵƌŝĚĞĂƟŽŶƉƌŽĐĞƐƐ͕ŚĞƌĞĂƌĞƐŽŵĞŐĞŶĞƌĂůŐƵŝĚĞůŝŶĞƐƚŽĨŽůůŽǁƚŚĂƚŵĂLJŚĞůƉLJŽƵ͗

• Don’t judge your ideas too harshly.tŚĞŶLJŽƵĮƌƐƚƐƚĂƌƚƚŽďƌĂŝŶƐƚŽƌŵ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽŶŽƚ

ũƵĚŐĞLJŽƵƌŝĚĞĂƐĂƚƚŚĞƐĂŵĞƟŵĞƚŚĂƚLJŽƵĂƌĞŐĞŶĞƌĂƟŶŐƚŚĞŵ͘/ĨLJŽƵĂƌĞƚŽŽĐƌŝƟĐĂůǁŚĞŶLJŽƵ
ĂƌĞƚŚŝŶŬŝŶŐŽĨŶĞǁŝĚĞĂƐ͕LJŽƵǁŝůůŵŽƐƚůŝŬĞůLJďĞĐŽŵĞƐƚƵĐŬďĞĐĂƵƐĞLJŽƵǁŝůůĨĞĞůůŝŬĞŶŽŝĚĞĂ
LJŽƵƚŚŝŶŬŽĨŝƐǁŽƌƚŚǁƌŝƟŶŐĚŽǁŶ͘ŽŶ͛ƚďĞĐŽŵĞĐŽŶƐƚƌĂŝŶĞĚďLJLJŽƵƌŽǁŶũƵĚŐĞŵĞŶƚŽƌƚŚĞ
ũƵĚŐĞŵĞŶƚŽĨŽƚŚĞƌƐ͘DĂŬĞƐƵƌĞŝĚĞĂŐĞŶĞƌĂƟŽŶĂŶĚŝĚĞĂĞǀĂůƵĂƟŽŶĂƌĞƚǁŽƐĞƉĂƌĂƚĞƐƚĞƉƐ͘
ͻǀĞƌLJŽŶĞĐĂŶďĞĐƌĞĂƟǀĞ͘^ŽŵĞƟŵĞƐŝƚŝƐĞĂƐLJƚŽƚŚŝŶŬƚŚĂƚƚŚĞƌĞĂƌĞƉĞŽƉůĞǁŚŽĂƌĞĐƌĞĂƟǀĞ
ĂŶĚ ƉĞŽƉůĞ ǁŚŽ ĂƌĞŶ͛ƚ ĐƌĞĂƟǀĞ͕ ďƵƚ ƌĞĂůůLJ ĂŶLJŽŶĞ ĐĂŶ ďĞ ĐƌĞĂƟǀĞ͊ /ƚ ŝƐ Ăůů ĂďŽƵƚ ƚƌƵƐƟŶŐ Ă
ĐƌĞĂƟǀĞƉƌŽĐĞƐƐ͕ĚŽŝŶŐůŽƚƐŽĨƌĞƐĞĂƌĐŚ͕ĂŶĚĮŶĚŝŶŐŝĚĞĂƟŽŶŵĞƚŚŽĚƐƚŚĂƚǁŽƌŬĨŽƌLJŽƵ͘dƌƵƐƚ
ƚŚĂƚLJŽƵǁŝůůŐĂŝŶŝŶƐŝŐŚƚĨƌŽŵĞĂĐŚŝĚĞĂƟŽŶŵĞƚŚŽĚLJŽƵǁŝůůƚƌLJŝŶƚŚŝƐĐŚĂƉƚĞƌͲͲŝĨLJŽƵĚŽŶ͛ƚ͕LJŽƵ
ŵŝŐŚƚŵŝƐƐŽƵƚŽŶĐƌĞĂƟǀĞŝĚĞĂƐLJŽƵĐŽƵůĚŚĂǀĞĐŽŵĞƵƉǁŝƚŚ͊
ͻ/ƚƚĂŬĞƐƟŵĞ͘ĞĐĂƵƟŽƵƐŽĨŝĚĞĂƐƚŚĂƚLJŽƵĐĂŶƚŚŝŶŬŽĨƌŝŐŚƚĂǁĂLJ͘^ŽŵĞƟŵĞƐŝƚŝƐƚĞŵƉƟŶŐ
ƚŽĐůŝŶŐƚŽƚŚĞĮƌƐƚŝĚĞĂƚŚĂƚǁĞƚŚŝŶŬŽĨ͕ďƵƚŝƚŝƐůŝŬĞůLJƚŚĂƚƚŚŽƐĞŝĚĞĂƐĂƌĞĐƌĞĂƚĞĚďĂƐĞĚŽŶ
ƐƵƌĨĂĐĞŬŶŽǁůĞĚŐĞĂďŽƵƚĂƉƌŽďůĞŵĂŶĚŵĂLJŶŽƚďĞƚŚĂƚŐƌĞĂƚ͘ĞŽƉĞŶƚŽŶĞǁŝŶƐŝŐŚƚ͊ZĞĂůůLJ
ŝŶǀĞƐƟŐĂƚĞƚŚĞŶĞĞĚLJŽƵĂƌĞƚƌLJŝŶŐƚŽƐŽůǀĞĂŶĚŐĞƚƚŽŬŶŽǁƚŚĞƉĞŽƉůĞǁŚŽĂƌĞŝŶǀŽůǀĞĚ͘/ƚƚĂŬĞƐ
ƟŵĞƚŽĚŽƚŚŝƐŬŝŶĚŽĨƌĞƐĞĂƌĐŚ͘ĞƉĂƟĞŶƚ͘
ͻ/ĚĞŶƟĨLJƚŚĞƉƌŽďůĞŵLJŽƵĂƌĞƚƌLJŝŶŐƚŽƐŽůǀĞ͘ZĞĂůůLJŐƌĞĂƚŝĚĞĂƐĂƌĞŶ͛ƚƵƐĞĨƵůƚŽƉĞŽƉůĞŝŶLJŽƵƌ
ĐŽŵŵƵŶŝƚLJŝĨƚŚĞLJĂƌĞŶŽƚƐŽůǀŝŶŐĂƌĞĂůƉƌŽďůĞŵ͘KŶĞǁĂLJƚŽŐĞƚƉĂƐƚLJŽƵƌƐƵƌĨĂĐĞƵŶĚĞƌƐƚĂŶĚŝŶŐ
ŽĨĂƐŝƚƵĂƟŽŶĂŶĚƚŽŐĞƚĚŽǁŶƚŽƚŚĞƌĞĂůƉƌŽďůĞŵŝƐďLJĐŽŶƟŶƵŝŶŐƚŽĂƐŬ͞ǁŚLJ͍͟tŚĞŶLJŽƵĂƐŬ
ǁŚLJƉĞŽƉůĞĂĐƚƚŚĞǁĂLJƚŚĞLJĚŽŽƌƚŚŝŶŬƚŚĞǁĂLJƚŚĞLJĚŽ͕LJŽƵŵĂLJƌĞĂůŝnjĞƚŚĂƚƚŚĞƉƌŽďůĞŵLJŽƵ
ƚŚŽƵŐŚƚLJŽƵǁĞƌĞƚƌLJŝŶŐƚŽƐŽůǀĞƌĞĂůůLJŝƐŶ͛ƚĂƉƌŽďůĞŵĂŶĚƚŚĂƚƚŚĞƌĞŝƐĂŵƵĐŚŵŽƌĞŝŶƚĞƌĞƐƟŶŐ͕
ůĞƐƐŽďǀŝŽƵƐƉƌŽďůĞŵƚŚĂƚŶĞĞĚƐƚŽďĞƐŽůǀĞĚ͘,ŽƉĞĨƵůůLJďĞĐĂƵƐĞLJŽƵŚĂǀĞƚĂŬĞŶƟŵĞƚŽŐĞƚƚŽ
ŬŶŽǁLJŽƵƌĐŽŵŵƵŶŝƚLJŝŶƉƌĞǀŝŽƵƐĐŚĂƉƚĞƌƐ͕LJŽƵǁŝůůŚĂǀĞĂůƌĞĂĚLJĚĞǀĞůŽƉĞĚĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐ
ŽĨƌĞĂůŶĞĞĚƐŽĨƉĞŽƉůĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͘hƐĞƚŚŽƐĞŶĞĞĚƐƚĂƚĞŵĞŶƚƐĂƐLJŽƵŵŽǀĞĨŽƌǁĂƌĚ
ŝŶƚŽŝĚĞĂƟŽŶ͘

ZĞŵĞŵďĞƌƚŚĞƐĞŐƵŝĚĞůŝŶĞƐĂƐLJŽƵďĞŐŝŶƚŽǁŽƌŬƚŚƌŽƵŐŚƚŚĞĞdžĞƌĐŝƐĞƐŝŶƚŚŝƐůĞƐƐŽŶ͘

dŚŝŶŬŽĨDĂŶLJ/ĚĞĂƐ
ƌĂŝŶƐƚŽƌŵŝŶŐŝƐĂŵĞƚŚŽĚƚŽŐĞŶĞƌĂƚĞĂůĂƌŐĞƋƵĂŶƟƚLJŽĨŝĚĞĂƐŝŶĂƐŚŽƌƚƉĞƌŝŽĚŽĨƟŵĞ͘&ŝƌƐƚLJŽƵŶĞĞĚ
ƚŽĐŚŽŽƐĞŽŶĞŽĨƚŚĞŶĞĞĚƐƚĂƚĞŵĞŶƚƐLJŽƵĐƌĞĂƚĞĚƚŽƵƐĞĂƐĂĨƌĂŵĞǁŽƌŬ͘ůůŽĨƚŚĞŝĚĞĂƐLJŽƵŐĞŶĞƌĂƚĞ
ƐŚŽƵůĚĨŽĐƵƐŽŶƐŽůǀŝŶŐƚŚŝƐŶĞĞĚ͘EĞdžƚ͕LJŽƵŶĞĞĚƚŽƐĞƚĂƟŵĞĨŽƌŚŽǁůŽŶŐLJŽƵǁŝůůďƌĂŝŶƐƚŽƌŵ͘zŽƵ
ƐŚŽƵůĚĂŝŵĨŽƌĂďŽƵƚϮϬͲϯϬŵŝŶƵƚĞƐƉĞƌƐĞƐƐŝŽŶ͘dŚĞŶĞdžƚƐƚĞƉŝƐũƵƐƚǁƌŝƟŶŐĚŽǁŶĂůůƚŚĞŝĚĞĂƐLJŽƵ
ĐŽŵĞƵƉǁŝƚŚ͘dŚŝƐĐĂŶďĞĚŽŶĞďLJLJŽƵƌƐĞůĨŽƌŝŶĂŐƌŽƵƉ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽƌĞŵĞŵďĞƌŶŽƚƚŽĐƌŝƟĐŝnjĞ
ŽƌĐƌŝƟƋƵĞĂŶLJŽĨƚŚĞŝĚĞĂƐLJŽƵŐĞŶĞƌĂƚĞǁŚŝůĞďƌĂŝŶƐƚŽƌŵŝŶŐ͘͘͘ĞǀĞŶƚŚĞŽŶĞƐƚŚĂƚƐĞĞŵŝŵƉŽƐƐŝďůĞ͘/ƚ
ŝƐŝŵƉŽƌƚĂŶƚƚŽũƵƐƚůĞƚLJŽƵƌĐƌĞĂƟǀŝƚLJŇŽǁ͊dŚĞĨŽĐƵƐŽĨƚŚŝƐĞdžĞƌĐŝƐĞŝƐƋƵĂŶƟƚLJŶŽƚƋƵĂůŝƚLJŽĨŝĚĞĂƐ͘

78 | T hinking | Generating Great Ideas

 Exercise 6.2: Brainstorming
/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ĮƌƐƚǁƌŝƚĞĚŽǁŶƚŚĞĂƌĞĂƐŽŶŽƉƉŽƌƚƵŶŝƚLJƚŚĂƚLJŽƵĚĞǀĞůŽƉĞĚŝŶŚĂƉƚĞƌϯ͘
dŚĞŶďƌĂŝŶƐƚŽƌŵǁĂLJƐƚŽŵĞĞƚƚŚŽƐĞŶĞĞĚƐ͘

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϭ͗

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ƌĞĂƐŽĨKƉƉŽƌƚƵŶŝƚLJηϮ͗

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'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 79
 ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϯ͗

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϰ͗

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80 | T hinking | Generating Great Ideas

dŚŝŶŬ/ŶEĞǁtĂLJƐ
tŽƌĚĐŽŶŶĞĐƟŽŶƐĂƌĞĂŶŝĚĞĂŐĞŶĞƌĂƟŽŶŵĞƚŚŽĚƚŚĂƚǁŝůůŚĞůƉLJŽƵĚĞǀĞůŽƉŝĚĞĂƐƚŚĂƚĂƌĞŽƵƚŽĨƚŚĞ
ŽƌĚŝŶĂƌLJ͘WŝĐŬĂǁŽƌĚƚŽĚĞƐĐƌŝďĞƚŚĞƉƌŽďůĞŵLJŽƵĂƌĞĐƵƌƌĞŶƚůLJƚƌLJŝŶŐƚŽƐŽůǀĞ͘dŚĂƚǁŽƌĚǁŝůůďĞLJŽƵƌ
ŽďũĞĐƚ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨƚŚĞƉƌŽďůĞŵŝƐƚŚĂƚĂǀŝůůĂŐĞůĂĐŬƐĐůĞĂŶǁĂƚĞƌ͕LJŽƵƌŽďũĞĐƚǁŽƌĚŵŝŐŚƚďĞǁĂƚĞƌ͘
EĞdžƚ͕ƵƐĞĞŝƚŚĞƌLJŽƵƌƐĞůĨŽƌĂĚŝĐƟŽŶĂƌLJƚŽĐŽŵĞƵƉǁŝƚŚĂůŝƐƚŽĨƌĂŶĚŽŵŶŽƵŶƐŶŽƚĚŝƌĞĐƚůLJƌĞůĂƚĞĚƚŽ
LJŽƵƌŽďũĞĐƚͲͲƚŚĞƐĞǁŝůůďĞLJŽƵƌƌĞƐƉŽŶƐĞǁŽƌĚƐ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŚĂƚƚŚĞƌĞŝƐŶŽƚĂůƌĞĂĚLJĂĐŽŶŶĞĐƟŽŶ
ďĞƚǁĞĞŶƚŚĞŽďũĞĐƚĂŶĚƌĞƐƉŽŶƐĞǁŽƌĚ͘/ĨǁĂƚĞƌŝƐLJŽƵƌŽďũĞĐƚǁŽƌĚ͕ĮƐŚǁŽƵůĚďĞĂŶĞdžĂŵƉůĞŽĨĂ
ďĂĚ ƌĞƐƉŽŶƐĞ ǁŽƌĚ͘ Ŷ ĞdžĂŵƉůĞ ŽĨ ŐŽŽĚ ƌĞƐƉŽŶƐĞ ǁŽƌĚƐ ĨŽƌ ǁĂƚĞƌ ǁŽƵůĚ ďĞ͗ ďŝŬĞ͕ ĚŽĐƵŵĞŶƚĂƟŽŶ͕
ĂŶĚĨĂƐŚŝŽŶ͘ŌĞƌLJŽƵŚĂǀĞLJŽƵƌŽďũĞĐƚĂŶĚƌĞƐƉŽŶƐĞǁŽƌĚƐŝƚŝƐƟŵĞƚŽƐƚĂƌƚŐĞŶĞƌĂƟŶŐŝĚĞĂƐ͘dƌLJƚŽ
ĐŽŶŶĞĐƚLJŽƵƌŽďũĞĐƚǁŽƌĚƚŽLJŽƵƌƌĞƐƉŽŶƐĞǁŽƌĚŝŶƚĞƌŵƐŽĨƚŚĞƉƌŽďůĞŵ͘tƌŝƚĞLJŽƵƌĞdžƉůĂŶĂƟŽŶ͕Žƌ
ŶĂƌƌĂƟŽŶ͕ŽĨLJŽƵƌƚŚŽƵŐŚƚƉƌŽĐĞƐƐĨŽƌƚŚĞĐŽŶŶĞĐƟŽŶƐ͘1

'ƌĂĐĞĂŶĚ^Ăŵ͛ƐĨƌŝĞŶĚƐŚĂǀĞƌĞĂůŝnjĞĚƚŚĂƚƚŚĞLJǁĂŶƚƚŽĐƌĞĂƚĞĂďƵƐŝŶĞƐƐŝĚĞĂƚŚĂƚĂĚĚƌĞƐƐĞƐƚŚĞŶĞĞĚ
ƚŽ ĐůĞĂŶ ƵƉ ƚŚĞ ƚƌĂƐŚ ŝŶ ƚŚĞŝƌ ĐŽŵŵƵŶŝƚLJ͘ ^Ăŵ ĂŶĚ 'ƌĂĐĞ ƐƵŐŐĞƐƚĞĚ ƚŚĞLJ ƚƌLJ ƚŚĞ ǁŽƌĚ ĐŽŶŶĞĐƟŽŶƐ
ŵĞƚŚŽĚĨŽƌŐĞŶĞƌĂƟŶŐŝĚĞĂƐ͘dŚĞLJƵƐĞĚ͞ƚƌĂƐŚ͟ĂƐƚŚĞŝƌŽďũĞĐƚĂŶĚŶĂƌƌĂƚĞĚŚŽǁƚŚŝƐĐŽŶŶĞĐƚƐƚŽƚŚĞŝƌ
ƌĞƐƉŽŶƐĞǁŽƌĚƐ͘

KďũĞĐƚ ZĞƐƉŽŶƐĞ

Trash Food

Car

Chair

Food. The consumption of food generates trash that will need to be collected. A trash
collection company could target restaurants and market establishments as customers.

Car. Cars are a large part of transportation to far away destinations. Often, much
trash builds up in peoples cars. As a way of promotion, the trash collection company could
RŦHUVSHFLDOGHDOVIRUFOHDQLQJRXWFDUVWRKHOSJHWWKHQDPHRIWKHFRPSDQ\RXW

Chair. The trash collection company will need to consider how it will dispose of large
items such as furniture including chairs. To better address this issue with as little
WURXEOHDVSRVVLEOHWKURXJKRXWWKH\HDUWKH\PLJKWFKRRVHWRKDYHDVSHFLŤFGD\RQD
regular basis that is meant for picking up large items so that they can better manage
the burden of transporting large items.

dŚƌŽƵŐŚƚŚŝƐĞdžĞƌĐŝƐĞƚŚĞLJŚĂǀĞĐŽŵĞƵƉǁŝƚŚŶĞǁŝĚĞĂƐĨŽƌƚŚĞŝƌƚƌĂƐŚƌĞŵŽǀĂůďƵƐŝŶĞƐƐŽƌŶĞǁĨĞĂƚƵƌĞƐ
ŽĨƚŚĂƚďƵƐŝŶĞƐƐũƵƐƚďLJƚŚŝŶŬŝŶŐĂďŽƵƚƚŚĞƐĞǁŽƌĚƐƚŚĂƚƚŚĞLJƚŚŽƵŐŚƚŚĂĚŶŽƚŚŝŶŐƚŽĚŽǁŝƚŚƚŚĞŝƌŝĚĞĂ͊
dŚĞLJŵĂLJƵƐĞƚŚĞƐĞŝĚĞĂƐŽƌƚŚĞLJŵĂLJŶŽƚďƵƚƚŚŝƐĚĞĮŶŝƚĞůLJŐŽƚƚŚĞŵƚŚŝŶŬŝŶŐĐƌĞĂƟǀĞůLJĂďŽƵƚƚŚĞŝƌ
ďƵƐŝŶĞƐƐ͘

Exercise 6.3: tŽƌĚŽŶŶĞĐƟŽŶƐ

/ŶƐĞƌƚĂǁŽƌĚƌĞůĂƚĞĚƚŽLJŽƵƌŶĞĞĚƐƚĂƚĞŵĞŶƚŝŶƚŚĞŽďũĞĐƚĐŽůƵŵŶĂŶĚĐŽŵĞƵƉǁŝƚŚĂůŝƐƚŽĨ
ƵŶƌĞůĂƚĞĚǁŽƌĚƐ͘dŚĞŶǁƌŝƚĞĚŽǁŶǁĂLJƐŝŶǁŚŝĐŚLJŽƵƌŽďũĞĐƚĂŶĚƌĞƐƉŽŶƐĞǁŽƌĚƐĐŽŶŶĞĐƚ͘zŽƵ
ŵĂLJĮŶĚƚŚĂƚLJŽƵǁĂŶƚƚŽƚƌLJƚŚŝƐĞdžĞƌĐŝƐĞĂĐŽƵƉůĞƟŵĞƐĨŽƌĞĂĐŚŶĞĞĚLJŽƵŚĂǀĞŝĚĞŶƟĮĞĚ͘

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϭ͗
KďũĞĐƚ ZĞƐƉŽŶƐĞ

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 81
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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϮ͗
KďũĞĐƚ ZĞƐƉŽŶƐĞ

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82 | T hinking | Generating Great Ideas

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϯ͗
KďũĞĐƚ ZĞƐƉŽŶƐĞ

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ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϰ͗
KďũĞĐƚ ZĞƐƉŽŶƐĞ

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'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 83
 DĂƉƉŝŶŐĂŶĚǀĂůƵĂƟŶŐzŽƵƌ/ĚĞĂƐ
EŽǁƚŚĂƚLJŽƵ͛ǀĞĚĞǀĞůŽƉĞĚƐŽŵĞŝĚĞĂƐ͕LJŽƵŶŽǁŶĞĞĚƚŽĞǀĂůƵĂƚĞƚŚĞŵ͘ǀĂůƵĂƟŽŶǁŝůůĂůůŽǁLJŽƵƚŽ
ƌĞŵŽǀĞƐŽŵĞŝĚĞĂƐŝŶŽƌĚĞƌƚŽĨŽĐƵƐŽŶƚŚĞŐŽŽĚŽŶĞƐ͘/ŶƚŚŝƐĞǀĂůƵĂƟŽŶŵĞƚŚŽĚ͕LJŽƵŶĞĞĚƚŽĐůĂƐƐŝĨLJ
LJŽƵƌ ŝĚĞĂƐ ŝŶƚŽ ƚŚƌĞĞ ƐĞƉĂƌĂƚĞ ĐĂƚĞŐŽƌŝĞƐ͘ dŚĞƐĞ ĐĂƚĞŐŽƌŝĞƐ ĂƌĞ͗ ŐƌŽƵŶĚ͕ ŚŽƌŝnjŽŶ͕ ĂŶĚ ƐŬLJ͘ ͞'ƌŽƵŶĚ͟
ŝĚĞĂƐĂƌĞƚŚĞŵŽƐƚďĂƐŝĐƐŽůƵƟŽŶƐLJŽƵĐĂŶĐŽŵĞƵƉǁŝƚŚďƵƚƚŚĂƚĂƌĞŶŽƚǀĞƌLJŝŶŶŽǀĂƟǀĞ͘͞^ŬLJ͟ŝĚĞĂƐ
ĂƌĞǁŝůĚĂŶĚĐƌĂnjLJŝĚĞĂƐƚŚĂƚLJŽƵĐĂŶƌĞĂĐŚĨŽƌďƵƚƚŚĂƚĂƌĞƚŽŽĚŝĸĐƵůƚƚŽŽďƚĂŝŶ͘dŚĞƐƉĂĐĞŝŶďĞƚǁĞĞŶ
ƚŚĞŐƌŽƵŶĚĂŶĚƐŬLJŝƐƚŚĞŚŽƌŝnjŽŶ͘/ĚĞĂƐƚŚĂƚĮƚŝŶƚŽƚŚĞ͞ŚŽƌŝnjŽŶ͟ĐĂƚĞŐŽƌLJĂƌĞŝĚĞĂƐƚŚĂƚLJŽƵĐĂŶƐĞĞ
ďƵƚƚŚĂƚLJŽƵĐĂŶ͛ƚŐĞƚƚŽƌŝŐŚƚĂǁĂLJ͘dŚĞLJĂƌĞĂĐŚŝĞǀĂďůĞŝĚĞĂƐͲͲŶŽƚƚŽŽďĂƐŝĐĂŶĚŶŽƚƚŽŽƵŶƌĞĂůŝƐƟĐͲ
ͲƚŚĂƚLJŽƵĐĂŶŵĂŬĞĂƉůĂŶƚŽŐĞƚƚŽ͘ŌĞƌŵĂƉƉŝŶŐLJŽƵƌŝĚĞĂƐŝŶƚŽƚŚĞƐĞĐĂƚĞŐŽƌŝĞƐ͕LJŽƵĐĂŶďĞŐŝŶƚŽ
ďƌĂŝŶƐƚŽƌŵǁĂLJƐƚŽŵŽǀĞŝĚĞĂƐƵƉŽƌĚŽǁŶŝŶƚŽƚŚĞ͞ŚŽƌŝnjŽŶ͘͟zŽƵĐĂŶƚŚŝŶŬĂďŽƵƚǁĂLJƐŽĨŵĂŬŝŶŐ͞ƐŬLJ͟
ŝĚĞĂƐŵŽƌĞƌĞĂůŝƐƟĐĂŶĚ͞ŐƌŽƵŶĚ͟ŝĚĞĂƐŵŽƌĞŝŶŶŽǀĂƟǀĞ͘

^ĂŵĂŶĚ'ƌĂĐĞŚĞůƉĞĚƚŚĞŝƌĨƌŝĞŶĚƐŵĂƉƚǁŽŽĨƚŚĞŝĚĞĂƐƚŚĂƚƚŚĞLJŚĂǀĞŐĞŶĞƌĂƚĞĚƐŽĨĂƌ͘dŚĞLJĚĞĐŝĚĞĚ
ƚŚĂƚŽŶĞŝĚĞĂĮƚƚŚĞ͞ƐŬLJ͟ĐĂƚĞŐŽƌLJĂŶĚŽŶĞŝĚĞĂĮƚƚŚĞ͞ŐƌŽƵŶĚ͟ĐĂƚĞŐŽƌLJ͕ďƵƚƚŚĂƚŶŽŶĞŽĨƚŚĞŝƌŝĚĞĂƐ
ƌĞĂůůLJůĂŶĚĞĚŝŶƚŚĞ͞ŚŽƌŝnjŽŶ͘͟

Remove trash from community

Use all of the trash to create

recycled artwork throughout
the city

Use a hand pulled wagon

to collect trash from the
community

^ĂŵĂŶĚ'ƌĂĐĞŚĞůƉĞĚƚŚĞŝƌĨƌŝĞŶĚƐƌĞĂƐƐĞƐƐƚŚĞŝĚĞĂƐŽŶƚŚĞŝƌŵĂƉ͘dŽŐĞƚŚĞƌƚŚĞLJďƌĂŝŶƐƚŽƌŵĞĚǁĂLJƐ
ƚŽŵĂŬĞƚŚĞŝƌ͞ŐƌŽƵŶĚ͟ŝĚĞĂƐŵŽƌĞĞdžĐŝƟŶŐĂŶĚƚŚĞŝƌ͞ƐŬLJ͟ŝĚĞĂƐŵŽƌĞĂĐŚŝĞǀĂďůĞ͘dŚƌŽƵŐŚƚŚŝƐƉƌŽĐĞƐƐ
ƚŚĞLJǁĞƌĞĂďůĞƚŽŐĞŶĞƌĂƚĞƚǁŽŶĞǁŝĚĞĂƐƚŚĂƚǁĞƌĞŝŶƚŚĞ͞ŚŽƌŝnjŽŶ͘͟

Remove trash from community

Use all of the trash to create

recycled artwork throughout
the city

Sort the trash into Modify a bicycle to attach a

recyclable, non recyclable wagon for trash collection
and organic material.
Compost the organic, sell the
recyclable to the factory and
make artwork from some of
the non recyclable material

Use a hand pulled wagon

to collect trash from the
community

84 | T hinking | Generating Great Ideas

 džĞƌĐŝƐĞϲ͘ϰ͗/ĚĞĂDĂƉƉŝŶŐ
tƌŝƚĞĂƐŚŽƌƚĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚŶĞĞĚƐƚĂƚĞŵĞŶƚŝŶƚŚĞƐƉĂĐĞƉƌŽǀŝĚĞĚĂƚƚŚĞƚŽƉŽĨĞĂĐŚĐŽůƵŵŶ͘dŚĞŶ͕ŝŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ŵĂƉĂůůƚŚĞ
ĚŝīĞƌĞŶƚŝĚĞĂƐLJŽƵŚĂǀĞĐŽŵĞƵƉǁŝƚŚĨŽƌĞĂĐŚĂƌĞĂŽĨŽƉƉŽƌƚƵŶŝƚLJ͘ŌĞƌŵĂƉƉŝŶŐĂůůƚŚĞŝĚĞĂƐ͕ŝĚĞŶƟĨLJǁĂLJƐƚŽŵŽǀĞƚŚĞŝĚĞĂƐƵƉŽƌ
ĚŽǁŶŝŶƚŽƚŚĞ͞ŚŽƌŝnjŽŶ͘͟

ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϭ ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϮ ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϯ ƌĞĂŽĨKƉƉŽƌƚƵŶŝƚLJηϰ

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 85
 /Ŷ ƚŚŝƐ ĐŚĂƉƚĞƌ͕ LJŽƵ ŚĂǀĞ ĂůƌĞĂĚLJ ĚĞǀĞůŽƉĞĚ ƐĞǀĞƌĂů ŝĚĞĂƐ ƚŽ ŵĞĞƚ ŶĞĞĚƐ LJŽƵ ŚĂǀĞ ŝĚĞŶƟĮĞĚ ŝŶ LJŽƵƌ
ĐŽŵŵƵŶŝƚLJ͘EŽǁŝƚ͛ƐƟŵĞƚŽĐŚŽŽƐĞƚŚƌĞĞŽĨƚŚŽƐĞŝĚĞĂƐĂŶĚĚĞǀĞůŽƉƚŚĞŵŝŶƚŽŵŽƌĞĐŽŵƉůĞƚĞŝĚĞĂƐ͘
dŚĞŝĚĞĂƐLJŽƵĐŚŽŽƐĞƚŽĚĞǀĞůŽƉƐŚŽƵůĚĮƚŝŶƚŽƚŚĞ͞ŚŽƌŝnjŽŶ͟ĐĂƚĞŐŽƌLJŽŶLJŽƵƌŝĚĞĂŵĂƉ͘

/ĨLJŽƵĂƌĞƵŶŚĂƉƉLJǁŝƚŚLJŽƵƌŝĚĞĂƐĂŌĞƌĮůůŝŶŐŽƵƚƚŚĞŵĂƉLJŽƵŵŝŐŚƚǁĂŶƚƚŽŐŽďĂĐŬƚŽƚŚĞďĞŐŝŶŶŝŶŐ
ŽĨƚŚĞĐŚĂƉƚĞƌĂŶĚŐĞŶĞƌĂƚĞƐŽŵĞŵŽƌĞŝĚĞĂƐ͘dŚĂƚ͛ƐŽŬĂLJ͊dŚĞŝĚĞĂŐĞŶĞƌĂƟŽŶƉƌŽĐĞƐƐŝƐĮůůĞĚǁŝƚŚ
ƌĞǀŝƐŝŶŐĂŶĚƌĞƚŚŝŶŬŝŶŐ͘Ϯ/ĨLJŽƵƚŚŝŶŬƚŚĞŝĚĞĂƐŝŶƚŚĞ͞ŚŽƌŝnjŽŶ͟ŽĨLJŽƵƌŝĚĞĂŵĂƉŚĂǀĞĂůŽƚŽĨƉŽƚĞŶƟĂů͕
ƚŚĞŶŵŽǀĞĨŽƌǁĂƌĚŝŶƚŽƚŚĞŶĞdžƚĞdžĞƌĐŝƐĞ͘

Exercise 6.5: Moving Forward

WŝĐŬƚŚƌĞĞŝĚĞĂƐĨƌŽŵƚŚĞ͞ŚŽƌŝnjŽŶ͟ŽŶLJŽƵƌŝĚĞĂŵĂƉƚŚĂƚLJŽƵƚŚŝŶŬŚĂǀĞƚŚĞŵŽƐƚƉŽƚĞŶƟĂů͘
ƌŝĞŇLJƐƵŵŵĂƌŝnjĞĞĂĐŚŽĨLJŽƵƌŝĚĞĂƐ͗

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Lesson 6.3: Developing Ideas

EŽǁƚŚĂƚLJŽƵŚĂǀĞƚŚƌĞĞƐŽůŝĚŝĚĞĂƐƚŚĂƚLJŽƵƚŚŝŶŬŚĂǀĞƉŽƚĞŶƟĂů͕ŝƚŝƐƟŵĞƚŽƌĞĮŶĞĂŶĚĚĞǀĞůŽƉƚŚŽƐĞ
ŝĚĞĂƐ͘dŚĞƌĞĂƌĞŵĂŶLJĚŝīĞƌĞŶƚǁĂLJƐƚŽŐŽĂďŽƵƚƚŚŝƐďƵƚƚǁŽŽĨƚŚĞďĞƐƚǁĂLJƐĂƌĞďLJĂĐƟŶŐŽƵƚLJŽƵƌ
ŝĚĞĂĂŶĚŐĞƫŶŐĨĞĞĚďĂĐŬĨƌŽŵƉĞŽƉůĞŝŶƚŚĞĐŽŵŵƵŶŝƚLJǁŚŽƐĞŶĞĞĚLJŽƵĂƌĞĨƵůĮůůŝŶŐ͘

dƌLJ/ƚKƵƚ
ŐƌĞĂƚǁĂLJƚŽĚĞƌŝǀĞŶĞǁŝĚĞĂƐŝƐďLJƉŚLJƐŝĐĂůůLJŐĞƫŶŐƵƉĂŶĚĞdžƉĞƌŝĞŶĐŝŶŐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ
ƐŽůƵƟŽŶ͘ dŚŝƐ ƌĞƋƵŝƌĞƐ ƐĞƫŶŐ ƵƉ ĂŶ ĞdžƉĞƌŝĞŶĐĞͲͲĐŽŵƉůĞƚĞ ǁŝƚŚ ŶĞĐĞƐƐĂƌLJ ĂƌƟĨĂĐƚƐ ĂŶĚ ƉĞŽƉůĞͲͲĂŶĚ
ƉŚLJƐŝĐĂůůLJ ͞ƚĞƐƟŶŐ͟ ŝƚ͘ zŽƵƌ ŐŽĂů ŝƐ ƚŽ ĨŽĐƵƐ ŽŶ ƚŚĞ ǁĂLJ LJŽƵ ŝŶƚĞƌĂĐƚ ǁŝƚŚ LJŽƵƌ ĞŶǀŝƌŽŶŵĞŶƚ ĂŶĚ ƚŚĞ
ĐŚŽŝĐĞƐ LJŽƵ ŵĂŬĞ ǁŚŝůĞ ŝŶ ŝƚ͘ tŚĞŶ LJŽƵ ĂƌĞ ƉŚLJƐŝĐĂůůLJ ĂĐƟŶŐ ŽƵƚ ĂŶ ŝĚĞĂ͕ ŝƚ ŝƐ ĞĂƐŝĞƌ ƚŽ ŐĞƚ ŝŶ LJŽƵƌ
ĐƵƐƚŽŵĞƌ͛ƐƐŚŽĞƐĂŶĚŐĞŶĞƌĂƚĞŝĚĞĂƐLJŽƵŵŝŐŚƚŶŽƚŚĂǀĞƌĞĂůŝnjĞĚďLJƚĂůŬŝŶŐŽƌĚƌĂǁŝŶŐ͘

'ƌĂĐĞĂŶĚ^Ăŵ͛ƐĨƌŝĞŶĚƐĚĞĐŝĚĞĚƚŽƚƌLJƚŚŝƐŵĞƚŚŽĚƚŽĞdžƉůŽƌĞƚŚĞŝƌƚƌĂƐŚƌĞŵŽǀĂůŝĚĞĂŵŽƌĞƚŚŽƌŽƵŐŚůLJ͘
dŚĞLJǀŝƐŝƚĞĚŚŽŵĞƐĂŶĚůŽĐĂůƐŵĂůůďƵƐŝŶĞƐƐĞƐĂŶĚŽďƐĞƌǀĞĚŚŽǁƉĞŽƉůĞŐĞŶĞƌĂƚĞƚƌĂƐŚĂŶĚĚŝƐƉŽƐĞ
ŽĨŝƚ;ŽƌĚŽŶ͛ƚĚŝƐƉŽƐĞŽĨŝƚ͘ͿdŚĞLJĂůƐŽǀŝƐŝƚĞĚƚŚĞůŽĐĂůƚƌĂƐŚĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJĂŶĚǁĂůŬĞĚƚŚƌŽƵŐŚǁŚĂƚ
ŝƚǁŽƵůĚďĞůŝŬĞƚŽďƌŝŶŐƚƌĂƐŚƚŚĞƌĞƚŽĚŝƐƉŽƐĞŽĨŝƚ͘tŚĂƚƚŚĞLJůĞĂƌŶĞĚǁĂƐƚŚĂƚǁŚŝůĞŵĂŶLJƉĞŽƉůĞ
ǁĂŶƚĞĚƚŽĚŝƐƉŽƐĞŽĨƚŚĞŝƌƚƌĂƐŚƉƌŽƉĞƌůLJ͕ƚŚĞLJĚŝĚŶ͛ƚŬŶŽǁŚŽǁƚŽƐŽƌƚƚŚĞĚŝīĞƌĞŶƚƚƌĂƐŚŝƚĞŵƐŶŽƌĚŝĚ
ƚŚĞLJŚĂǀĞƚŚĞƟŵĞƚŽďƌŝŶŐŝƚĂůůƚŚĞǁĂLJƚŽƚŚĞƚƌĂƐŚĨĂĐŝůŝƚLJĂŶĚƌĞĐLJĐůŝŶŐĨĂĐƚŽƌLJ͘

86 | T hinking | Generating Great Ideas

 Exercise 6.6: Act it out
ŌĞƌĂĐƟŶŐŽƵƚĞĂĐŚŽĨLJŽƵƌŝĚĞĂƐ͕ƌĞĐŽƌĚĂŶLJŝŶƐŝŐŚƚƐLJŽƵŚĂǀĞŐĂŝŶĞĚďĞůŽǁ͘,ĂƐĂƐƉĞĐƚƐŽĨ
LJŽƵƌŝĚĞĂƐĐŚĂŶŐĞĚ͍tŚLJŽƌǁŚLJŶŽƚ͍

/ŶƐŝŐŚƚƐĨŽƌŝĚĞĂηϭ͗

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/ŶƐŝŐŚƚƐĨŽƌŝĚĞĂηϮ͗

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/ŶƐŝŐŚƚƐĨŽƌŝĚĞĂηϯ͗

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'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 87
 Get Feedback
tŚĞŶ LJŽƵ ĂƌĞ ĚĞǀĞůŽƉŝŶŐ Ăůů ŽĨ LJŽƵƌ ŝĚĞĂƐ͕ ŝƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ ƌĞŵĞŵďĞƌ ƚŚĂƚ ƚŚĞLJ ĂƌĞ ŽŶůLJ ŽƉŝŶŝŽŶƐ
ƵŶůĞƐƐLJŽƵĂĐƟǀĞůLJŐŽŽƵƚŝŶƚŽƚŚĞĐŽŵŵƵŶŝƚLJĂŶĚĚŽƌĞƐĞĂƌĐŚ͘zŽƵŚĂǀĞĂůƌĞĂĚLJĚŽŶĞƐŽŵĞƌĞƐĞĂƌĐŚ
ǁŚĞŶLJŽƵĚĞǀĞůŽƉĞĚŶĞĞĚƐƚĂƚĞŵĞŶƚƐƚŚƌŽƵŐŚŝŶƚĞƌǀŝĞǁƐǁŝƚŚƉĞŽƉůĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJŝŶŚĂƉƚĞƌϯ͘
^ŝŶĐĞƚŚĞŶLJŽƵŚĂǀĞĚĞǀĞůŽƉĞĚŝĚĞĂƐƚŽĨƵůĮůůƚŚŽƐĞŶĞĞĚƐƚĂƚĞŵĞŶƚƐĂŶĚŝƚŝƐƟŵĞƚŽŐĂƚŚĞƌĨĞĞĚďĂĐŬŽŶ
ƚŚŽƐĞŝĚĞĂƐ͘ŐƌĞĂƚǁĂLJƚŽŵŝŶŝŵŝnjĞƚŚĞƉƌŽďĂďŝůŝƚLJŽĨĨĂŝůƵƌĞŝƐďLJĐŚĞĐŬŝŶŐLJŽƵƌŝĚĞĂƐĂŐĂŝŶƐƚƌĞĂůŝƚLJ͘
KŶĞŽĨƚŚĞďĞƐƚǁĂLJƐƚŽŽďƚĂŝŶĨĞĞĚďĂĐŬŝƐďLJĐŽŶĚƵĐƟŶŐƐƵƌǀĞLJƐĂŶĚŝŶƚĞƌǀŝĞǁƐǁŝƚŚƉĞŽƉůĞĨƌŽŵLJŽƵƌ
ŝŶƚĞŶĚĞĚŵĂƌŬĞƚ͘

tŚĞŶƉƌĞƉĂƌŝŶŐĨŽƌŝŶƚĞƌǀŝĞǁƐǁŝƚŚƉĞŽƉůĞĨƌŽŵLJŽƵƌĐŽŵŵƵŶŝƚLJ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽƌĞŵĞŵďĞƌǁŚŝůĞ
LJŽƵ ǁĂŶƚ ƚŽ ĐĂƉƚƵƌĞ ƵŶĞdžƉĞĐƚĞĚ ŝŶƐŝŐŚƚƐ ĨƌŽŵ LJŽƵƌ ƉŽƚĞŶƟĂů ĐƵƐƚŽŵĞƌƐ͕ LJŽƵ ĂůƐŽ ŶĞĞĚ ƚŽ ĚŽ ƐŽŵĞ
ƉƌĞƉĂƌĂƟŽŶ ƚŽ ŚĞůƉ ƐƚĂƌƚ ƚŚŽƐĞ ǀĂůƵĂďůĞ ĐŽŶǀĞƌƐĂƟŽŶƐ͘ ,ĞƌĞ ĂƌĞ ƐŽŵĞ ƚŽƉŝĐƐ ƚŚĂƚ LJŽƵ ŵĂLJ ǁĂŶƚ ƚŽ
ĚĞǀĞůŽƉƋƵĞƐƟŽŶƐĨŽƌĂŶĚĚŝƐĐƵƐƐ͗

• Show your idea. /ĨLJŽƵŚĂǀĞĂƉƌŽĚƵĐƚŝĚĞĂ͕LJŽƵŵĂLJǁĂŶƚƚŽŵĂŬĞĂŶĞdžĂŵƉůĞŽĨLJŽƵƌƉƌŽĚƵĐƚ

ƚŽƐŚŽǁƚŽƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞŝŶƚĞƌǀŝĞǁŝŶŐ͘/ƚĚŽĞƐŶŽƚŶĞĞĚƚŽďĞƌĞĂůďƵƚĐŽƵůĚďĞŵĂĚĞŽƵƚ
ŽĨƉĂƉĞƌŽƌƌĞĐLJĐůĞĚŵĂƚĞƌŝĂůƐŽƌĐŽƵůĚĞǀĞŶďĞũƵƐƚĂĚƌĂǁŝŶŐ͘dŚĞƉŽŝŶƚŝƐŶŽƚƚŽƐŚŽǁĞdžĂĐƚůLJ
ǁŚĂƚLJŽƵƌƉƌŽĚƵĐƚŝƐǁŝƚŚĂůůƚŚĞĚĞƚĂŝůƐĂŶĚĨĞĂƚƵƌĞƐ͕ďƵƚƌĂƚŚĞƌƚŽƐŚŽǁƚŚĞŽǀĞƌĂůůĐŽŶĐĞƉƚ͘
^ŚŽǁƚŚĞŵƚŚĞƉƌŽĚƵĐƚĂŶĚĂƐŬƚŚĞŵŚŽǁƚŚĞLJǁŽƵůĚƵƐĞŝƚ͘/ĨLJŽƵŚĂǀĞĂƐĞƌǀŝĐĞŝĚĞĂ͕LJŽƵŵĂLJ
ǁĂŶƚƚŽŚĂǀĞLJŽƵƌĐƵƐƚŽŵĞƌƌĞͲĞŶĂĐƚƚŚĞĞdžƉĞƌŝĞŶĐĞǁŝƚŚLJŽƵ͘ƌŝŶŐŝŵƉŽƌƚĂŶƚŽďũĞĐƚƐƚŽŚĞůƉ
LJŽƵƐĞƚƚŚĞƐĐĞŶĞ͘/ŶĞŝƚŚĞƌĐĂƐĞ͕ĚŽŶ͛ƚũƵŵƉŝŶƌŝŐŚƚĂǁĂLJŝĨLJŽƵƌĐƵƐƚŽŵĞƌŝƐƵƐŝŶŐLJŽƵƌƉƌŽĚƵĐƚ
ŽƌĞdžƉĞƌŝĞŶĐŝŶŐLJŽƵƌƐĞƌǀŝĐĞŝŶĂǁĂLJLJŽƵĚŝĚŶ͛ƚƉƌĞĚŝĐƚ͘/ŶƐƚĞĂĚ͕ŽďƐĞƌǀĞǁŚĂƚƚŚĞLJĚŽĂŶĚĂƐŬ
ƚŚĞŵƚŽƚĞůůLJŽƵĂďŽƵƚƚŚĞŝƌƚŚŽƵŐŚƚƉƌŽĐĞƐƐ͘
• Talk about your idea. tŚĂƚĚŽLJŽƵůŝŬĞĂďŽƵƚŝƚ͍tŚĂƚĚŽŶ͛ƚLJŽƵůŝŬĞĂďŽƵƚŝƚ͍tŚĂƚĂƩƌŝďƵƚĞƐŽĨ
LJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂƌĞŵŽƐƚŝŵƉŽƌƚĂŶƚƚŽƚŚĞĐƵƐƚŽŵĞƌ͍
ͻƐŬĂďŽƵƚƐŽůƵƟŽŶƐƚŚĞLJƵƐĞĂůƌĞĂĚLJ͘ŽLJŽƵƵƐĞƐŽŵĞƚŚŝŶŐƐŝŵŝůĂƌĂůƌĞĂĚLJ͍/ĨƐŽ͕ǁŚĂƚ͍tŚĞŶ
ĚŽLJŽƵƵƐĞŝƚ͍tŚĂƚĚŽLJŽƵůŝŬĞĂďŽƵƚŝƚ͍tŚĂƚĚŽŶ͛ƚLJŽƵůŝŬĞĂďŽƵƚŝƚ͍
• Ask about purchasing process͘/ĨLJŽƵĂůƌĞĂĚLJƵƐĞƐŽŵĞƚŚŝŶŐƐŝŵŝůĂƌ͕ŚŽǁĚŝĚLJŽƵĮŶĚŽƵƚĂďŽƵƚ
ŝƚ͍tŚĞƌĞĚŝĚLJŽƵďƵLJŝƚ͍,ŽǁŵƵĐŚĚŝĚLJŽƵƉĂLJ͍ŝĚLJŽƵƉƵƌĐŚĂƐĞŝƚ͍ŝĚƐŽŵĞŽŶĞƉƵƌĐŚĂƐĞ
ŝƚĨŽƌLJŽƵ͍

tŚĞŶĐŽŶĚƵĐƟŶŐƚŚĞŝŶƚĞƌǀŝĞǁƐ͕ƚŚĞƌĞĂƌĞƐŽŵĞƚĞĐŚŶŝƋƵĞƐLJŽƵĐĂŶƵƐĞƚŽŵĂŬĞƐƵƌĞLJŽƵĂƌĞŽďƚĂŝŶŝŶŐ
ƵƐĞĨƵůĨĞĞĚďĂĐŬ͘

• Encourage storytelling. KŶĞŽĨƚŚĞďĞƐƚǁĂLJƐLJŽƵĐĂŶŐĂŝŶŝŶƐŝŐŚƚƐĂďŽƵƚLJŽƵƌĐƵƐƚŽŵĞƌĂŶĚƚŚĞŝƌ

ŶĞĞĚƐ ŝƐ ďLJůŝƐƚĞŶŝŶŐ ƚŽ ƐƚŽƌŝĞƐ͘ ŶĐŽƵƌĂŐĞƚŚĞ ƉĞŽƉůĞ LJŽƵ ĂƌĞŝŶƚĞƌǀŝĞǁŝŶŐ ƚŽ ƚĞůů LJŽƵ ƐƚŽƌŝĞƐ
ĂďŽƵƚƚŚĞƉƌŽďůĞŵLJŽƵĂƌĞƚƌLJŝŶŐƚŽƐŽůǀĞŽƌƐƚŽƌŝĞƐĂďŽƵƚƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐƚŚĞLJŚĂǀĞƵƐĞĚ
ŝŶƚƌLJŝŶŐƚŽƐŽůǀĞƚŚĂƚƉƌŽďůĞŵ͘
ͻ>ĞĂƌŶĨƌŽŵŶĞŐĂƟǀĞĨĞĞĚďĂĐŬ͘/ĨƐŽŵĞŽŶĞŐŝǀĞƐLJŽƵŶĞŐĂƟǀĞĨĞĞĚďĂĐŬ͕ĚŽŶ͛ƚďĞƵƉƐĞƚ͘ƐŬǁŚLJ
ƚŚĞLJĚŽŶ͛ƚůŝŬĞŝƚŽƌǁŽƵůĚŶ͛ƚƵƐĞŝƚ͘dŚŝƐĐĂŶŽŌĞŶůĞĂĚƚŽƚŚĞŵŽƐƚŝŶĐƌĞĚŝďůLJƵƐĞĨƵůŝŶƐŝŐŚƚƐ͊
ͻŽŶ͛ƚũƵƐƚƐƟĐŬƚŽƚŚĞƋƵĞƐƟŽŶƐLJŽƵŚĂǀĞƉƌĞƉĂƌĞĚ͘ŽŶ͛ƚďĞĂĨƌĂŝĚƚŽůĞƚƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞ
ŝŶƚĞƌǀŝĞǁŝŶŐŵŽǀĞƚŚĞĐŽŶǀĞƌƐĂƟŽŶŝŶĂĚŝƌĞĐƟŽŶLJŽƵĚŝĚŶ͛ƚĞdžƉĞĐƚŽƌƉůĂŶ͘dŚŝŶŬĂďŽƵƚŚŽǁƚŚĞ
ĂŶƐǁĞƌƐƚŽƚŚĞƐĞƋƵĞƐƟŽŶƐǁŝůůŚĞůƉLJŽƵƚŽŵĂŬĞĚĞĐŝƐŝŽŶƐĂďŽƵƚLJŽƵƌƉƌŽĚƵĐƚʹLJŽƵŵŝŐŚƚŶĞĞĚ
ƚŽĐŚĂŶŐĞƚŚĞƋƵĞƐƟŽŶƐLJŽƵĂƐŬĂƐLJŽƵŐŽ͘
• Look for what is not obvious.>ŽŽŬĨŽƌƚŚĞĚĞƚĂŝůƐƚŚĂƚĂƌĞŶŽƚƐŽŽďǀŝŽƵƐͶǁŚĂƚĚŽƚŚĞLJǁĞĂƌ͕
ŚŽǁĚŽƚŚĞLJĂĐƚ͕ǁŚĂƚŝƐƚŚĞŝƌĂŐĞ͕ŐĞŶĚĞƌ͕ĂƫƚƵĚĞŽŶůŝĨĞ͕ŚĂďŝƚƐ͕ĞƚĐ͘dŚŝƐǁŝůůŚĞůƉLJŽƵŽƌŐĂŶŝnjĞ
LJŽƵƌĨĞĞĚďĂĐŬďĂƐĞĚŽŶĚĞŵŽŐƌĂƉŚŝĐĂŶĚĚŝīĞƌĞŶƚƐƵďͲŐƌŽƵƉƐ͘
• Look for inconsistencies.DĂŬĞŶŽƚĞǁŚĞŶƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞŝŶƚĞƌǀŝĞǁŝŶŐƐĂLJƐŽŶĞƚŚŝŶŐďƵƚ
ƚŚĞŶĚŽĞƐƐŽŵĞƚŚŝŶŐĞůƐĞ͘EŽƟĐŝŶŐƚŚĞƐĞŝŶĐŽŶƐŝƐƚĞŶĐŝĞƐĐĂŶůĞĂĚƚŽŐƌĞĂƚŝŶƐŝŐŚƚƐ͘
• Be okay with silence͘ zŽƵ ŵĂLJ ĨĞĞů Ă ŶĞĞĚ ƚŽ Įůů ŝŶ ĞǀĞƌLJ ƐŝůĞŶĐĞ ǁŝƚŚ ƋƵĞƐƟŽŶƐ ĂŶĚ ŵŽƌĞ
ĞdžƉůĂŶĂƟŽŶƐ ŽĨ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ŝĚĞĂ͘ /ŶƐƚĞĂĚ͕ ŐŝǀĞ ƉĂƵƐĞ ĨŽƌ ƚŚĞ ƉĞƌƐŽŶ LJŽƵ ĂƌĞ
ŝŶƚĞƌǀŝĞǁŝŶŐ ƚŽ ƚĂůŬ͘ ZĞŵĞŵďĞƌ ƚŚĂƚ LJŽƵ ĂƌĞ ƚŚĞƌĞ ƚŽ ŚĞĂƌ ǁŚĂƚ ƚŚĞLJ ŚĂǀĞ ƚŽ ƐĂLJ͕ ŶŽƚ ƚŽ ƚĞůů
ƚŚĞŵǁŚĂƚLJŽƵĂůƌĞĂĚLJŬŶŽǁ͘
• Take notes͘ DĂŬĞ ƐƵƌĞ ƚŽ ƌĞĐŽƌĚ ƚŚĞ ĂŶƐǁĞƌƐ ƚŚĂƚ LJŽƵ ƌĞĐĞŝǀĞ ĨƌŽŵ ĞĂĐŚ ƉĞƌƐŽŶ͕ ĂŶĚ ƵƐĞ
ĂĚĚŝƟŽŶĂůƉĂŐĞƐŝŶLJŽƵƌŶŽƚĞƐƐĞĐƟŽŶŝĨŶĞĐĞƐƐĂƌLJ͘/ƚŵĂLJďĞŚĞůƉĨƵůƚŽǁƌŝƚĞĚŽǁŶƚŚĞƉĞƌƐŽŶ͛Ɛ
ŶĂŵĞĂŶĚĂůůŽĨƚŚĞŝƌĂŶƐǁĞƌƐƐĞƉĂƌĂƚĞůLJƐŽƚŚĂƚLJŽƵĐĂŶƋƵŝĐŬůLJƌĞĨĞƌĞŶĐĞǁŚŽŐĂǀĞLJŽƵĞĂĐŚ
ĂŶƐǁĞƌ͘

88 | T hinking | Generating Great Ideas

 Exercise 6.7: Doing Interviews
WƌĞƉĂƌĞƚŽŝŶƚĞƌǀŝĞǁƉĞŽƉůĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJǁŚŽĞdžƉĞƌŝĞŶĐŝŶŐƚŚĞƉƌŽďůĞŵLJŽƵƌƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞǁŝůůƐŽůǀĞ͘hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽĚĞǀĞůŽƉǁŚĂƚƋƵĞƐƟŽŶƐŽƌƚŽƉŝĐƐLJŽƵǁŝůůǁĂŶƚƚŽďĞ
ƐƵƌĞƚŽĐŽǀĞƌĚƵƌŝŶŐƚŚĞŝŶƚĞƌǀŝĞǁƐ͘

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'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 89
 /ŶƚĞƌǀŝĞǁĂŵŝŶŝŵƵŵŽĨƚĞŶƉĞŽƉůĞ͘hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽĐĂƉƚƵƌĞĂůůLJŽƵƌŶŽƚĞƐĨƌŽŵLJŽƵƌŝŶƚĞƌǀŝĞǁƐ͘/ĨLJŽƵŶĞĞĚŵŽƌĞƐƉĂĐĞ͕ƚƵƌŶƚŽ
ƚŚĞĞdžƚƌĂŶŽƚĞƐƉĂŐĞƐŝŶƚŚĞďĂĐŬŽĨƚŚĞŬ͘

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90 | T hinking | Generating Great Ideas

/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ƐƵŵŵĂƌŝnjĞLJŽƵƌĮŶĚŝŶŐƐĂŶĚŝŶƐŝŐŚƚƐĨƌŽŵLJŽƵƌŝŶƚĞƌǀŝĞǁƐ͘tŚĂƚĚŝĚLJŽƵ
ůĞĂƌŶĨƌŽŵLJŽƵƌŝŶƚĞƌǀŝĞǁƐƚŚĂƚƐƵƌƉƌŝƐĞĚLJŽƵ͍tŚĂƚĚŝĚŶ͛ƚƐƵƌƉƌŝƐĞLJŽƵ͍

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'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 91
 Exercise 6.8: Develop Your Ideas
EŽǁƚŚĂƚLJŽƵŚĂǀĞŚĂĚƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽƚƌLJŽƵƚLJŽƵƌŝĚĞĂĂŶĚŐĂƚŚĞƌĨĞĞĚďĂĐŬ͕ŝƚŝƐƟŵĞƚŽ
ĨƵƌƚŚĞƌĚĞǀĞůŽƉLJŽƵƌŝĚĞĂƐďĂƐĞĚŽŶǁŚĂƚLJŽƵŚĂǀĞůĞĂƌŶĞĚ͘dŚĞĨĞĞĚďĂĐŬLJŽƵŚĂǀĞƌĞĐĞŝǀĞĚ
ŵŝŐŚƚŚĂǀĞǀĞƌŝĮĞĚLJŽƵƌŝĚĞĂŽƌŝƚŵĂLJŝŶƐƉŝƌĞLJŽƵƚŽƐůŝŐŚƚůLJĂůƚĞƌŽƌĐŽŵƉůĞƚĞůLJƌĞƚŚŝŶŬLJŽƵƌ
ŝĚĞĂƐ͘zŽƵŵĂLJŶĞĞĚƚŽŐŽďĂĐŬƚŽƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚĞĐŚĂƉƚĞƌĂŶĚƌĞǀŝĞǁƚŚĞŶĞĞĚLJŽƵĂƌĞ
ƚƌLJŝŶŐƚŽƐŽůǀĞ͕ĂůƚĞƌLJŽƵƌƉƌŽĚƵĐƚͬƐĞƌǀŝĐĞLJŽƵĚĞǀĞůŽƉĞĚƚŽƐŽůǀĞƚŚĞŶĞĞĚ͕ŽƌŵĂLJďĞLJŽƵƌŝĚĞĂƐ
ĂƌĞŐƌĞĂƚƚŚĞǁĂLJƚŚĞLJĂƌĞĂŶĚĂƌĞƌĞĂĚLJƚŽŵŽǀĞĨŽƌǁĂƌĚ͘

/ĨLJŽƵŶĞĞĚƚŽĚŽĂŶLJŵŽƌĞŝĚĞĂƟŽŶĂďŽƵƚLJŽƵƌŝĚĞĂďĞĨŽƌĞŵŽǀŝŶŐĨŽƌǁĂƌĚ͕ƵƐĞƚŚĞƐƉĂĐĞďĞůŽǁ
ƚŽĚŽƐŽ͘ƚƚŚĞĞŶĚŽĨƚŚĞĞdžĞƌĐŝƐĞ͕LJŽƵǁŝůůďĞĂƐŬĞĚƚŽďƌŝĞŇLJƐƵŵŵĂƌŝnjĞLJŽƵƌĮŶĂůƚŚƌĞĞŝĚĞĂƐ͘

92 | T hinking | Generating Great Ideas

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 93
 EŽǁƚŚĂƚLJŽƵŚĂǀĞƌĞĮŶĞĚLJŽƵƌŝĚĞĂƐŵŽƌĞ͕ďƌŝĞŇLJƐƵŵŵĂƌŝnjĞĞĂĐŚŽĨLJŽƵƌŝĚĞĂƐ͗

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Lesson 6.4: Idea Feasibility

EŽǁƚŚĂƚLJŽƵŚĂǀĞƚŚƌĞĞƐŽůŝĚ͕ǁĞůůͲĚĞǀĞůŽƉĞĚŝĚĞĂƐŝƚŝƐƟŵĞƚŽƐĞĞǁŚŝĐŚŝĚĞĂŚĂƐƚŚĞŵŽƐƚƉŽƚĞŶƟĂů
ĂŶĚĐĂŶĂĐƚƵĂůůLJďĞƉƵƚŝŶƚŽĂĐƟŽŶ͘dŚĞƌĞĂƌĞŵĂŶLJĨĂĐƚŽƌƐƚŚĂƚƐŚŽƵůĚLJŽƵƐŚŽƵůĚĐŽŶƐŝĚĞƌǁŚĞŶŵĂŬŝŶŐ
ƚŚŝƐĚĞĐŝƐŝŽŶƚŽŵĂŬĞƐƵƌĞLJŽƵƉŝĐŬƚŚĞŝĚĞĂƚŚĂƚŝƐŵŽƐƚĨĞĂƐŝďůĞĨŽƌLJŽƵƚŽƐƚĂƌƚŐŝǀĞŶǁŚŽLJŽƵĂƌĞĂŶĚ
ǁŚĂƚƌĞƐŽƵƌĐĞƐLJŽƵŚĂǀĞĂǀĂŝůĂďůĞƚŽLJŽƵ͘

94 | T hinking | Generating Great Ideas

 Exercise 6.9: Idea Feasibility
tƌŝƚĞĂƐŚŽƌƚĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚŽĨLJŽƵƌŝĚĞĂƐŝŶƚŚĞƐƉĂĐĞƉƌŽǀŝĚĞĚĂƚƚŚĞƚŽƉŽĨĞĂĐŚĐŽůƵŵŶ͘
ĂƌĞĨƵůůLJĂŶĂůLJnjĞĞĂĐŚŝĚĞĂĂƐƚŚĞLJƌĞůĂƚĞƚŽƐŬŝůůƐ͕ƌĞƐŽƵƌĐĞƐ͕ƟŵĞ͕ƉĂƐƐŝŽŶ͕ĂŶĚŵŽŶĞLJ͘&ŽƌĞĂĐŚ
ĐĂƚĞŐŽƌLJ͕ĂŶĂůLJnjĞƚŚĞƐƚĂƚĞŵĞŶƚƐďĞůŽǁĂŶĚƉŝĐŬŽŶĞǁŚŝĐŚďĞƐƚƌĞůĂƚĞƐƚŽLJŽƵƌŝĚĞĂ͘tƌŝƚĞƚŚĞ
ƉŽŝŶƚƐŐŝǀĞŶĨŽƌƚŚĂƚƐƚĂƚĞŵĞŶƚŝŶƚŚĂƚŝĚĞĂ͛ƐĐŽůƵŵŶ͘ŽƚŚŝƐĨŽƌĂůůƚŚƌĞĞŝĚĞĂƐ͘ƚƚŚĞĞŶĚ͕ƐƵŵ
ƵƉƚŚĞĐŽůƵŵŶƐƚŽĂƌƌŝǀĞĂƚĂƚŽƚĂůƐĐŽƌĞĨŽƌĞĂĐŚŝĚĞĂ͘ŶŝĚĞĂǁŝƚŚĂŚŝŐŚĞƌŶƵŵďĞƌŝƐŵŽƌĞůŝŬĞůLJ
ƚŽďĞĞĂƐŝĞƌĨŽƌLJŽƵƚŽƐƚĂƌƚŝŶƚŚĞƐŚŽƌƚƚĞƌŵŐŝǀĞŶLJŽƵƌĐƵƌƌĞŶƚƌĞƐŽƵƌĐĞƐ͘

/ĚĞĂηϭ /ĚĞĂηϮ /ĚĞĂηϯ

^</>>^͗
WĞŽƉůĞǁŚŽ/ŬŶŽǁŚĂǀĞƚŚĞƐŬŝůůƐ
ŶĞĐĞƐƐĂƌLJƚŽďĞĂďůĞƚŽŚĞůƉŵĞ͘
;ϯWK/Ed^Ϳ

dŚĞ ƉĞŽƉůĞ ǁŚŽ / ŬŶŽǁ ĚŽ ŶŽƚ

ŚĂǀĞ ƚŚĞ ƐŬŝůůƐ ŶĞĐĞƐƐĂƌLJ ƚŽ ŚĞůƉ
ŵĞ͖/ŶĞĞĚƚŽŵĞĞƚŶĞǁƉĞŽƉůĞ͘
;ϭWK/EdͿ
RESOURCES:
dŚĞ ŵĂƚĞƌŝĂůƐ / ŶĞĞĚ ƚŽ ƐƚĂƌƚ ƚŚŝƐ
ďƵƐŝŶĞƐƐ ǁŝůů ďĞ ŽĨ ůŽǁ ĐŽƐƚ ĂŶĚ
ĞĂƐLJĨŽƌŵĞƚŽŽďƚĂŝŶ͘;ϯWK/Ed^Ϳ

^ŽŵĞ͕ďƵƚŶŽƚĂůů͕ŽĨƚŚĞŵĂƚĞƌŝĂůƐ dŚŝƐŵĞƚŚŽĚŚĞůƉƐŝĚĞŶƟĨLJ
/ŶĞĞĚƚŽƐƚĂƌƚƚŚŝƐďƵƐŝŶĞƐƐǁŝůůďĞ ǁŚŝĐŚďƵƐŝŶĞƐƐŝĚĞĂƐŵŝŐŚƚ
ĐŚĂůůĞŶŐŝŶŐĨŽƌŵĞƚŽŽďƚĂŝŶ͘ ďĞƚŚĞĞĂƐŝĞƐƚĨŽƌLJŽƵƚŽƐƚĂƌƚ
;ϭWK/EdͿ ŐŝǀĞŶLJŽƵƌƌĞƐŽƵƌĐĞƐ͕ƐŬŝůůƐ
ĂŶĚŽƚŚĞƌĐŽŶƐƚƌĂŝŶƚƐ͘dŚĞƐĞ
dŚĞ ŵĂƚĞƌŝĂůƐ / ŶĞĞĚ ƚŽ ƐƚĂƌƚ ƚŚŝƐ ĨĂĐƚŽƌƐĂƌĞĂůůŝŵƉŽƌƚĂŶƚŝŶƚŚĞ
ďƵƐŝŶĞƐƐǁŝůůďĞĚŝĸĐƵůƚĨŽƌŵĞƚŽ ŽƉĞƌĂƟŽŶƐŽĨĂďƵƐŝŶĞƐƐ͕ďƵƚ
ŽďƚĂŝŶ͘;ϬWK/Ed^Ϳ ƚŚĞLJĂƌĞĂůƐŽǀĞƌLJŝŵƉŽƌƚĂŶƚ
ŝŶŝĚĞŶƟĨLJŝŶŐǁŚŝĐŚďƵƐŝŶĞƐƐ
d/D͗ ŽƉƉŽƌƚƵŶŝƚLJǁŽƵůĚĐƵƌƌĞŶƚůLJ
dŚĞ ďƵƐŝŶĞƐƐ ŝĚĞĂ ĐĂŶ ďĞ ƐƚĂƌƚĞĚ ďĞƚŚĞďĞƐƚĮƚĨŽƌLJŽƵƌ
ǁŝƚŚŝŶĂŵŽŶƚŚ͘;ϯWK/Ed^Ϳ ĐŝƌĐƵŵƐƚĂŶĐĞƐ͘

dŚĞďƵƐŝŶĞƐƐŝĚĞĂǁŝůůƚĂŬĞůŽŶŐĞƌ
ƚŚĂŶƚŚƌĞĞŵŽŶƚŚƐƚŽƐƚĂƌƚ͘
;ϭWK/EdͿ
W^^/KE͗
/ Ăŵ ĞdžĐŝƚĞĚ ĂďŽƵƚ ƚŚŝƐ ďƵƐŝŶĞƐƐ
ŝĚĞĂĂŶĚŝƚǁŝůůŚĞůƉŵLJĐŽŵŵƵŶŝƚLJ͊
;ϯWK/Ed^Ϳ

/ Ăŵ ŶŽƚ ĂƐ ĞdžĐŝƚĞĚ ĂďŽƵƚ ƚŚŝƐ

ďƵƐŝŶĞƐƐŝĚĞĂ͘;ϬWK/EdͿ
MONEY:
/ ĐĂŶ ƐƚĂƌƚ ƚŚŝƐ ďƵƐŝŶĞƐƐ ǁŝƚŚ ƚŚĞ
ŵŽŶĞLJ/ƐĂǀĞĚ͘;ϯWK/EdͿ

/ ŶĞĞĚ ƚŽ ŐŽ ƚŽ ƚŚĞ ďĂŶŬ ƚŽ ŐĞƚ Ă

ůŽĂŶ ƚŽ ďĞ ĂďůĞ ƚŽ ƐƚĂƌƚ ƚŚŝƐ ŝĚĞĂ͘
;ϭWK/EdͿ

TOTAL SCORE

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 95
 Lesson 6.5: ZĞĮŶĞzŽƵƌ/ĚĞĂ
EŽǁƚŚĂƚLJŽƵŚĂǀĞƉŝĐŬĞĚŽŶĞŝĚĞĂƚŽĐŽŶƟŶƵĞƚŽĚĞǀĞůŽƉ͕ŝƚŝƐƟŵĞƚŽďĞŐŝŶƚŽƌĞĮŶĞLJŽƵƌŝĚĞĂ͘tŚŝůĞ
LJŽƵŚĂǀĞůŝŬĞůLJƚŚŽƵŐŚƚĂďŽƵƚƚŚŝƐďĞĨŽƌĞ͕ŝƚǁŝůůďĞŝŵƉŽƌƚĂŶƚƚŽĮƌƐƚĨŽƌŵĂůůLJŝĚĞŶƟĨLJŚŽǁĞdžĂĐƚůLJLJŽƵƌ
ďƵƐŝŶĞƐƐĂĚĚƐǀĂůƵĞĂŶĚŚŽǁŝƚŝƐƉŽƐŝƟŽŶĞĚŝŶƚŚĞĐŽŶƚĞdžƚŽĨĐŽŵƉĞƟƚŽƌƐ͘dŚŝƐŝƐŝŵƉŽƌƚĂŶƚďĞĐĂƵƐĞLJŽƵ
ŵĂLJƌĞĂůŝnjĞƚŚĂƚLJŽƵƌŝĚĞĂ͛ƐǀĂůƵĞͲĂĚĚĞĚŝƐĂůƌĞĂĚLJďĞƐĂƟƐĮĞĚďLJĂĐŽŵƉĞƟƚŽƌ͘/ĨƚŚŝƐŝƐƚŚĞĐĂƐĞ͕ŝƚŵĂLJ
ďĞƟŵĞƚŽŐŽďĂĐŬƚŽƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚŝƐĐŚĂƉƚĞƌĂŶĚďƌĂŝŶƐƚŽƌŵŵŽƌĞŝĚĞĂƐ͘<ŶŽǁŝŶŐLJŽƵƌďƵƐŝŶĞƐƐ͛
ǀĂůƵĞͲĂĚĚĞĚŝƐĂůƐŽĐƌŝƟĐĂůĂƐLJŽƵďĞŐŝŶƚŽŵĂŬĞĚĞĐŝƐŝŽŶƐĂďŽƵƚŚŽǁƚŽŽƉĞƌĂƚĞLJŽƵƌďƵƐŝŶĞƐƐ͘

dŽŝĚĞŶƟĨLJLJŽƵƌďƵƐŝŶĞƐƐ͛ǀĂůƵĞͲĂĚĚĞĚ͕ƐƚĂƌƚďLJĚĞĮŶŝŶŐƚŚĞƉŽƚĞŶƟĂůĐƵƐƚŽŵĞƌƐĞƌǀĞĚďLJƚŚĞŝĚĞĂĂŶĚ
ƚŚĞ ŶĞĞĚ ƚŚĞ ŝĚĞĂ ǁŝůů ĂĚĚƌĞƐƐ͘ dŚĞŶ͕ ŝĚĞŶƟĨLJ ŚŽǁ ƚŚĞŝƌ ĞdžƉĞƌŝĞŶĐĞƐ ĐŚĂŶŐĞ ďĞĨŽƌĞ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ
ƐĞƌǀŝĐĞĞdžŝƐƚƐǀĞƌƐƵƐĂŌĞƌLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĞdžŝƐƚƐƚŚƌŽƵŐŚĐƌĞĂƟŶŐ͞ďĞĨŽƌĞ͟ĂŶĚ͞ĂŌĞƌ͟ĚƌĂǁŝŶŐƐ͘
3 zŽƵĐĂŶŝŶĐůƵĚĞŝŶLJŽƵƌĚƌĂǁŝŶŐƐǁŚĂƚLJŽƵƚŚŝŶŬLJŽƵƌĐƵƐƚŽŵĞƌƐǁŝůůƐĂLJŽƌĚŽ͘ŌĞƌLJŽƵŚĂǀĞLJŽƵƌ
ƉŝĐƚƵƌĞƐ͕ĚĞƚĞƌŵŝŶĞŝĨLJŽƵƚŚŝŶŬƚŚĞƌĞŝƐĞŶŽƵŐŚŽĨĂĚŝīĞƌĞŶĐĞŵĂĚĞďĞƚǁĞĞŶƚŚĞďĞĨŽƌĞƉŝĐƚƵƌĞĂŶĚ
ƚŚĞĂŌĞƌƉŝĐƚƵƌĞƚŽũƵƐƟĨLJLJŽƵƌďƵƐŝŶĞƐƐ͘ ^ĂŵĂŶĚ'ƌĂĐĞ͛ƐĨƌŝĞŶĚƐǁĂŶƚĞĚƚŽĐĂƉƚƵƌĞĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽƌ
ŝŵĂŐĞƐŽĨǁŚĂƚƚŚĞŝƌĐƵƐƚŽŵĞƌƐǁŝůůůŽŽŬůŝŬĞďĞĨŽƌĞĂŶĚĂŌĞƌƚŚĞŝŶƚƌŽĚƵĐƟŽŶŽĨƚŚĞŝƌƚƌĂƐŚƌĞŵŽǀĂů
ďƵƐŝŶĞƐƐ͘͘

IDEA: Collect trash from local businesses to promote healthy environments

DEFINE YOUR CUSTOMER: Small Business Owners, especially food stores and
restaurants

NEEDS BEING ADDRESSED: Some businesses have poor reputations because

customers can become sick from eating their products. This hurts many families in the
community who are dependent on those businesses.

VALUE ADDED: Frequent pick-up of trash

The Food Store

ĞĨŽƌĞ

Closed

The Food Store

ŌĞƌ

96 | T hinking | Generating Great Ideas

ŌĞƌƵŶĚĞƌƐƚĂŶĚŝŶŐLJŽƵďƵƐŝŶĞƐƐ͛ǀĂůƵĞͲĂĚĚĞĚ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚĂƚƚƌĂŶƐůĂƚĞƐŝŶƚŽ
LJŽƵƌďƵƐŝŶĞƐƐ͛ƉŽƐŝƟŽŶŝŶƚŚĞĐŽŶƚĞdžƚŽĨLJŽƵƌĐŽŵƉĞƟƚŽƌƐ͘KŶĞǁĂLJƚŽĚŽƚŚŝƐŝƐďLJĂĐƚƵĂůůLJŵĂƉƉŝŶŐŽƵƚ
ŚŽǁLJŽƵƌĐŽŵƉĞƟƚŽƌƐĂĚĚǀĂůƵĞƚŚƌŽƵŐŚĂƉŽƐŝƟŽŶŝŶŐŵĂƉ͘dŽĐƌĞĂƚĞĂƉŽƐŝƟŽŶŝŶŐŵĂƉ͕ĮƌƐƚŝĚĞŶƟĨLJ
ƚǁŽĚŝŵĞŶƐŝŽŶƐǁŚŝĐŚĂƌĞŝŵƉŽƌƚĂŶƚĂŶĚƌĞůĞǀĂŶƚƚŽLJŽƵƌďƵƐŝŶĞƐƐŽƌŝŶĚƵƐƚƌLJ͘WůĂĐĞƚŚŽƐĞĚŝŵĞŶƐŝŽŶƐ
ŽŶƚŚĞŐƌĂƉŚ͘dŚĞŶŐƌĂƉŚǁŚĞƌĞLJŽƵƚŚŝŶŬĞĂĐŚŽĨLJŽƵƌĐŽŵƉĞƟƚŽƌƐůŝĞƐĂŶĚǁŚLJ͘dŚŝƐŝƐĂŐƌĞĂƚǁĂLJƚŽ
ĐŚĞĐŬĂŶĚŵĂŬĞƐƵƌĞƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞLJŽƵŽīĞƌŝƐŶŽƚĂůƌĞĂĚLJŽīĞƌĞĚďLJƐŽŵĞŽŶĞĞůƐĞ͘

dŚĞƉŽƐŝƟŽŶŝŶŐŵĂƉďĞůŽǁŝƐƐƉĞĐŝĮĐƚŽ^ĂŵƵĞůĂŶĚ'ƌĂĐĞ͛ƐĨƌŝĞŶĚ͛ƐďƵƐŝŶĞƐƐ͘dŚĞLJŚĂǀĞŐƌĂƉŚĞĚƚǁŽŽĨ
ƚŚĞŝƌĐŽŵƉĞƟƚŽƌƐǁŚŽŚĂƉƉĞŶƚŽŚĂǀĞǀĞƌLJĚŝīĞƌĞŶƚƉŽƐŝƟŽŶŝŶŐƐƚĂƚĞŵĞŶƚƐ͘

Very cheap ŽŵƉĞƟƚŽƌϭ

;DŽŶƚŚůLJƉŝĐŬƵƉ͕ǀĞƌLJ
ĐŚĞĂƉͿ

ŽŵƉĞƟƚŽƌϭ
;ŝǁĞĞŬůLJƉŝĐŬƵƉ͕ĐŚĞĂƉĞƌͿ

Frequent pick up Infrequent pick up

/ŶĐƌĞĂƟŶŐƚŚĞŝƌƉŽƐŝƟŽŶŝŶŐ
^ĂŵΘ'ƌĂĐĞ͛Ɛ&ƌŝĞŶĚƐ ƐƚĂƚĞŵĞŶƚ͕ŽƵƌĨƌŝĞŶĚƐŵƵƐƚ
;tĞĞŬůLJƉŝĐŬƵƉ͕ŵŽƌĞĞdžƉĞŶƐŝǀĞͿ ĐŽŶƐŝĚĞƌƚŚĞŝƌƚĂƌŐĞƚĐƵƐƚŽŵĞƌ͗
ǁŚĂƚŝƐƚŚĞĂŐĞ͕ŝŶĐŽŵĞ͕ĂŶĚ
More expensive ŚŽǁŽŌĞŶĚŽƚŚĞLJďƵLJƚŚŝƐ
ƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞͲǁŚĂƚĂƌĞ
ƚŚĞLJůŽŽŬŝŶŐĨŽƌ͍dŽƵŶĚĞƌƐƚĂŶĚ
ƚŚŝƐƚŚĞLJ͛ůůŚĂǀĞƚŽĚŽƌĞƐĞĂƌĐŚ͖
/Ĩ^ĂŵƵĞůĂŶĚ'ƌĂĐĞ͛ƐĨƌŝĞŶĚƐĚĞĐŝĚĞƚŽƉŽƐŝƟŽŶƚŚĞŝƌďƵƐŝŶĞƐƐďĂƐĞĚŽŶƚŚĞĨƌĞƋƵĞŶĐLJŽĨƚƌĂƐŚƉŝĐŬ ƚŚĞLJŬŶŽǁƚŚĞLJĐĂŶ͛ƚĂƐƐƵŵĞ͊
ƵƉ͕ ƚŚĞŝƌ ƉŽƐŝƟŽŶŝŶŐ ƐƚĂƚĞŵĞŶƚ ŵŝŐŚƚ ůŽŽŬ ůŝŬĞ ƚŚŝƐ͗ ͞DŽƐƚ ZĞůŝĂďůĞ ĂŶĚ &ƌĞƋƵĞŶƚ dƌĂƐŚ ZĞŵŽǀĂů
^ĞƌǀŝĐĞ͘͟/ĨƚŚĞĐŽƐƚŽĨƚŚĞŝƌƐĞƌǀŝĐĞƐŝƐĂŶŝŵƉŽƌƚĂŶƚƐĞůůŝŶŐƉŽŝŶƚŽĨƚŚĞďƵƐŝŶĞƐƐ͕'ƌĂĐĞĂŶĚ^ĂŵƵĞů
ĐŽƵůĚĨŽĐƵƐƚŚĞŝƌĞīŽƌƚƐĂŶĚŵŽŶĞLJŽŶĚĞǀĞůŽƉŝŶŐƚŚĂƚĨƵƌƚŚĞƌ͘

Exercise 6.10: hŶĚĞƌƐƚĂŶĚŝŶŐtŚĞƌĞzŽƵ&ŝƚ/Ŷ

tŚŽƐĞŶĞĞĚĂƌĞLJŽƵĂĚĚƌĞƐƐŝŶŐ͍

_______________________________________
tŚĂƚŝƐƚŚĞŶĞĞĚLJŽƵĂƌĞĂĚĚƌĞƐƐŝŶŐ͍

_______________________________________
tŚĂƚǀĂůƵĞĂƌĞLJŽƵĂĚĚŝŶŐ͍

_______________________________________

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 97
 EŽǁŝůůƵƐƚƌĂƚĞŝŶƚŚĞƐƉĂĐĞďĞůŽǁŚŽǁLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶĂĚĚƌĞƐƐĞƐƚŚĞŶĞĞĚ͘

ĞĨŽƌĞ

ŌĞƌ

98 | T hinking | Generating Great Ideas

EŽǁ ĐƌĞĂƚĞ Ă ƉŽƐŝƟŽŶŝŶŐ ŵĂƉ ĨŽƌ LJŽƵƌ ďƵƐŝŶĞƐƐ͘ LJ ĐƌĞĂƟŶŐ ƚŚŝƐ ŵĂƉ LJŽƵ ƐŚŽƵůĚ ďĞ ĂďůĞ ƚŽ
ƐŚŽǁŚŽǁLJŽƵƌŝĚĞĂƐŽůǀĞƐĂŶĞĞĚƚŚĂƚŝƐŶŽƚŵĞƚ;ŽƌŶŽƚŵĞƚǁĞůůͿďLJĐŽŵƉĞƟƚŽƌƐ͘dŚŝŶŬŽĨƚǁŽ
ƋƵĂůŝĨLJŝŶŐ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ ŽĨ ƚŚĞ ĐŽŵƉĞƟƟŽŶ ĂŶĚ ŚŽǁ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ŝĚĞĂ ĐŽŵƉĂƌĞƐ͘
>ĂďĞůƚŚŽƐĞƚǁŽĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽŶƚŚĞĂdžŝƐƉŽŝŶƚƐŽĨƚŚĞĐŚĂƌƚ;ƚŚĞƉŽƐŝƟǀĞǀĂůƵĞƐƐŚŽƵůĚďĞĂƚ
ƚŚĞƚŽƉĂŶĚůĞŌĞŶĚƐŽĨƚŚĞĂdžŝƐͿ͘ŽŵƉůĞƚĞƚŚĞůĂďĞůƐŽŶĞĂĐŚƐŝĚĞŽĨƚŚĞƉŽƐŝƟŽŶŝŶŐŵĂƉǁŝƚŚ
ůĂďĞůƐƚŚĂƚĂƌĞƌĞůĞǀĂŶƚƚŽLJŽƵƌďƵƐŝŶĞƐƐƚŚĞŶƉůŽƚLJŽƵƌƐĞůĨĂŶĚĂƚůĞĂƐƚƚǁŽĐŽŵƉĞƟƚŽƌƐŽŶƚŚĞ
ŵĂƉ͘

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DLJƉƌŽĚƵĐƚŽīĞƌƐƚŚĞĨŽůůŽǁŝŶŐďĞŶĞĮƚƐ͗

___________________________ ƚŽƚŚĞĨŽůůŽǁŝŶŐĐƵƐƚŽŵĞƌƐ͗
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Your Business Plan
ĂƐĞĚŽŶLJŽƵƌĂŶƐǁĞƌƐĂďŽǀĞ͕ǁƌŝƚĞLJŽƵƌŽǁŶƉŽƐŝƟŽŶŝŶŐƐƚĂƚĞŵĞŶƚ͘
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
_______________________________________ Exercise 6.10͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
_______________________________________ ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
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Market Analysis:
_______________________________________ WŽƐŝƟŽŶŝŶŐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŚŽǁ
_______________________________________ LJŽƵƌŝĚĞĂŝƐƵŶŝƋƵĞĂŶĚ
ĂĚĚƐǀĂůƵĞƌĞůĂƟǀĞƚŽǁŚĂƚ
_______________________________________ ŝĚĞĂƐŵĂLJĂůƌĞĂĚLJďĞŽƵƚ
ƚŚĞƌĞĂĚĚƌĞƐƐŝŶŐƚŚĞǀĞƌLJ
_______________________________________ ƐĂŵĞŝƐƐƵĞĂƐLJŽƵ͘

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 99
 EŽǁƚŚĂƚLJŽƵƵŶĚĞƌƐƚĂŶĚLJŽƵďƵƐŝŶĞƐƐ͛ĐŽƌĞǀĂůƵĞͲĂĚĚĞĚĂŶĚLJŽƵƵŶĚĞƌƐƚĂŶĚŚŽǁLJŽƵĂƌĞƉŽƐŝƟŽŶĞĚ
ĐŽŵƉĂƌĞĚƚŽLJŽƵƌĐŽŵƉĞƟƚŽƌƐ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽƌĞĐŽŐŶŝnjĞƚŚĞƐƚƌĞŶŐƚŚƐ͕ǁĞĂŬŶĞƐƐ͕ŽƉƉŽƌƚƵŶŝƟĞƐ͕ĂŶĚ
ƚŚƌĞĂƚƐŽĨƚŚĞƉŽƐŝƟŽŶŝŶŐLJŽƵŚĂǀĞĐŚŽƐĞŶ͘dŽĚŽƚŚŝƐ͕ŵĂŶLJĞŶƚƌĞƉƌĞŶĞƵƌƐƵƐĞĂƚĂĐƟĐĐĂůůĞĚĂ^tKd
ĂŶĂůLJƐŝƐǁŚŝĐŚƐƚĂŶĚƐĨŽƌ^ƚƌĞŶŐƚŚƐ͕tĞĂŬŶĞƐƐĞƐ͕KƉƉŽƌƚƵŶŝƟĞƐĂŶĚdŚƌĞĂƚƐ͘^ƚƌĞŶŐƚŚƐĂŶĚtĞĂŬŶĞƐƐĞƐ
ĂƌĞ ĐŽŶƐŝĚĞƌĞĚ ŝŶƚĞƌŶĂů ĨĂĐƚŽƌƐ ǁŚŝůĞ KƉƉŽƌƚƵŶŝƟĞƐ ĂŶĚ dŚƌĞĂƚƐ ĂƐƐĞƐƐ ƚŚĞ ĞdžƚĞƌŶĂů ĨĂĐƚŽƌƐ ŽĨ ƚŚĞ
ďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚLJŽƵĂƌĞƚƌLJŝŶŐƚŽĞŶƚĞƌ͘ŽŶĚƵĐƟŶŐĂ^tKdĂŶĂůLJƐŝƐŝƐŝŵƉŽƌƚĂŶƚďĞĐĂƵƐĞƉĂƌƚ
ŽĨƉŝĐŬŝŶŐĂƉŽƐŝƟŽŶŝŶĂĐŽŵƉĞƟƟǀĞůĂŶĚƐĐĂƉĞŵĞĂŶƐƚŚĂƚLJŽƵĐĂŶŶŽƚďĞĞǀĞƌLJƚŚŝŶŐƚŽĞǀĞƌLJŽŶĞĂŶĚ
ƚŚĂƚLJŽƵǁŝůůŚĂǀĞǁĞĂŬŶĞƐƐĞƐĂŶĚƚŚƌĞĂƚƐ͘,ĂǀŝŶŐǁĞĂŬŶĞƐƐĞƐŽƌƚŚƌĞĂƚƐĚŽĞƐŶ͛ƚŵĞĂŶLJŽƵƌŝĚĞĂŝƐďĂĚ͕
ŝŶƐƚĞĂĚŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽďĞĂǁĂƌĞŽĨƚŚĞŵƐŽƚŚĂƚLJŽƵĐĂŶǁŽƌŬƚŽǁĂƌĚƐŵŝŶŝŵŝnjŝŶŐƚŚĞŵĂŶĚŵĂŬĞƚŚĞ
ŵŽƐƚŽĨLJŽƵƌƐƚƌĞŶŐƚŚƐĂŶĚŽƉƉŽƌƚƵŶŝƟĞƐ͘

'ƌĂĐĞĂŶĚ^ĂŵŚĂǀĞƐƵŐŐĞƐƚĞĚƚŚĞŝƌĨƌŝĞŶĚƐĐƌĞĂƚĞĂ^tKdĂŶĂůLJƐŝƐƚŽŚĞůƉƚŚĞŵďĞŵŽƌĞĂǁĂƌĞŽĨ
ǁŚĂƚƚŚĞLJĚŽǁĞůůĂƐĂďƵƐŝŶĞƐƐĂŶĚǁŚĂƚŝƐŵŽƌĞĐŚĂůůĞŶŐŝŶŐ͘

STRENGTHS WEAKNESSES

High quality disposal process; Transportation challenges

Existing relationship with manager at
recyclable material factory

OPPORTUNITIES THREATS

Founder has space for sorting process; Overwhelming need in the community;
High demand for art and jewelry made Government infrastructure may
from recycled materials ultimately overtake services

Exercise 6.11: Your SWOT

hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽĐŽŵƉůĞƚĞĂ^tKdĂŶĂůLJƐŝƐŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘

Strengths Weaknesses
tŚĂƚĂƌĞLJŽƵƌƉƌŽĚƵĐƚ͛ƐƐƚƌĞŶŐƚŚƐ͍tŚĂƚ tŚĂƚ ŝƐ ƐŽŵĞƚŚŝŶŐ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ
ŵĂŬĞƐLJŽƵƌƉƌŽĚƵĐƚĚŝīĞƌĞŶƚĨƌŽŵŽƚŚĞƌƐ͍ ĚŽĞƐŶŽƚĚŽǁĞůů͍

Your Business Plan

KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Exercise 6.11͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
KƉƉŽƌƚƵŶŝƟĞƐ Threats
tŚĂƚĂƌĞƚŚĞŽƉƉŽƌƚƵŶŝƟĞƐŝŶƚŚĞ tŚĂƚĂƌĞƚŚĞƚŚƌĞĂƚƐŝŶƚŚĞŵĂƌŬĞƚƉůĂĐĞ͍
ŵĂƌŬĞƚƉůĂĐĞ͍tŚĂƚĐĂŶLJŽƵƚĂŬĞĂĚǀĂŶƚĂŐĞ tŚĂƚǁŝůůŵĂŬĞŝƚĚŝĸĐƵůƚƚŽŝŶƚƌŽĚƵĐĞLJŽƵƌ
ŽĨƚŽŝŶƚƌŽĚƵĐĞLJŽƵƌďƵƐŝŶĞƐƐ͍ ƉƌŽĚƵĐƚ͍

Market Analysis:
^tKdŶĂůLJƐŝƐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐ
ŝŶƚĞƌŶĂůƐƚƌĞŶŐƚŚƐĂŶĚ
weaknesses as well as
ĞdžƚĞƌŶĂůŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚ
ƚŚƌĞĂƚƐŝŶƚŚĞŵĂƌŬĞƚƉůĂĐĞ͘

100 | T hinking | Generating Great Ideas

 Exercise 6.12: Your Product or Service
EŽǁƚŚĂƚLJŽƵŚĂǀĞĚĞǀĞůŽƉĞĚĂƐŽůŝĚƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂ͕ŝƚŝƐƟŵĞƚŽŵŽǀĞƚŽǁĂƌĚƐƉůĂŶŶŝŶŐ
ŚŽǁ ƚŽ ĞdžĞĐƵƚĞ LJŽƵƌ ŝĚĞĂ͘ /Ŷ ƚŚĞ ƐƉĂĐĞ ďĞůŽǁ ĚĞƐĐƌŝďĞ LJŽƵ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ĂƐ ĐůĞĂƌůLJ ĂŶĚ
ĞĸĐŝĞŶƚůLJĂƐƉŽƐƐŝďůĞ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞǁŚĂƚŶĞĞĚLJŽƵĂƌĞĂĚĚƌĞƐƐŝŶŐ͕ǁŚŽƚŚĞĐƵƐƚŽŵĞƌŝƐ͕ĂŶĚ
ƚŚĞǀĂůƵĞƚŚĂƚLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂĚĚƐĐŽŵƉĂƌĞĚƚŽLJŽƵƌĐŽŵƉĞƟƚŽƌƐ͘dŚŝƐĚĞƐĐƌŝƉƟŽŶǁŝůů
ŐƵŝĚĞƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨLJŽƵƌďƵƐŝŶĞƐƐƉůĂŶŝŶƚŚĞŶĞdžƚĐŚĂƉƚĞƌƐ͘

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Your Business Plan

KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Exercise 6.12͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗

Product or Service
^ŽůƵƟŽŶ͗
Product or Service
ĞƐĐƌŝƉƟŽŶ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌ
ƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂ͘Ğ
ƐƵƌĞƚŽŝŶĐůƵĚĞŝŶĨŽƌŵĂƟŽŶ
ĂďŽƵƚƚŚĞǀĂůƵĞĂĚĚĞĚďLJ
LJŽƵƌŝĚĞĂĂŶĚŚŽǁLJŽƵĂƌĞ
ƉŽƐŝƟŽŶŝŶŐLJŽƵƌƐĞůĨŝŶLJŽƵƌ
ďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚ͘

'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ | T hinking | 101


ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
102 | T hinking | Generating Great Ideas
ZĞŇĞĐƟŽŶ͗ 'ĞŶĞƌĂƟŶŐ'ƌĞĂƚ/ĚĞĂƐ
hƐĞƚŚŝƐƐƉĂĐĞƚŽƌĞŇĞĐƚŽŶLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂĂŶĚƚŚĞ͞ƚŚŝŶŬŝŶŐ͟ƚŚĂƚůĞĚƵƉƚŽŝƚ͘zŽƵŵĂLJǁĂŶƚ
ƚŽĚŝƐĐƵƐƐLJŽƵƌǀĂůƵĞƐ͕ƐŬŝůůƐ͕ĐŽŵŵƵŶŝƚLJŶĞĞĚƐ͕ĂŶĚƌĞůĂƟŽŶƐŚŝƉƐƚŚĂƚĐŽŶƚƌŝďƵƚĞĚƚŽLJŽƵƌŝĚĞĂ͘
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PLANNING
 WĂƌƚϮ͗Planning
dŚŝƐƉĂƌƚŝƐĨŽĐƵƐĞĚŽŶĚĞǀĞůŽƉŝŶŐƚŚĞďƵƐŝŶĞƐƐŝĚĞĂLJŽƵŐĞŶĞƌĂƚĞĚŝŶWĂƌƚϭ͘dŚŝƐƉĂƌƚ
ǁŝůůŐƵŝĚĞLJŽƵƚŚƌŽƵŐŚƚŚĞƉƌŽĐĞƐƐŽĨŵĂŬŝŶŐLJŽƵƌŝĚĞĂĂƌĞĂůŝƚLJ͘>ŝŬĞWĂƌƚϭƉĂƌƚƚŚŝƐ
ƐĞĐƟŽŶŝƐŶŽƚĂůŝŶĞĂƌƉƌŽĐĞƐƐ͖LJŽƵŵĂLJŶĞĞĚƚŽƌĞƉĞĂƚŝƚĂĨĞǁƟŵĞƐƚŽĚĞǀĞůŽƉĂƉůĂŶ
ǁŝƚŚǁŚŝĐŚLJŽƵĂƌĞƐĂƟƐĮĞĚ͕ďĞĨŽƌĞŵŽǀŝŶŐŽŶƚŽWĂƌƚϯ͘

/ƚŝƐLJŽƵƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŵĂƌŬĞƟŶŐ͕ŽƉĞƌĂƟŽŶƐ͕ĂĐĐŽƵŶƟŶŐ͕ĂŶĚĮŶĂŶĐĞĂŶĚŚŽǁ
ĞĂĐŚŽĨƚŚĞƐĞŝŵƉĂĐƚLJŽƵƌďƵƐŝŶĞƐƐƚŚĂƚǁŝůůĂůůŽǁLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŽďĞĐŽŵĞĂ
ƌĞĂůŝƚLJ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽŚĂǀĞĂƉůĂŶďĞĨŽƌĞũƵŵƉŝŶŐŝŶƚŽĂĐƟŽŶƐŽƚŚĂƚLJŽƵĞīĞĐƟǀĞůLJ
ƵƐĞ ƌĞƐŽƵƌĐĞƐ ĂŶĚ ĂƌĞ ƐƵĐĐĞƐƐĨƵů͘ dŚƌŽƵŐŚŽƵƚ ƚŚŝƐ ƐĞĐƟŽŶ LJŽƵ ǁŝůů ďĞ ĚŝƌĞĐƚĞĚ ƚŽ
ƉƉĞŶĚŝdž / ƚŽ ĐŽŵƉůĞƚĞ ĚŝīĞƌĞŶƚ ƐĞĐƟŽŶƐ ŽĨ LJŽƵƌ ďƵƐŝŶĞƐƐ ƉůĂŶ͘ LJ ƚŚĞ ĞŶĚ ŽĨ ƚŚŝƐ
ƐĞĐƟŽŶ͕LJŽƵǁŝůůŚĂǀĞĂĐŽŵƉůĞƚĞĚďƵƐŝŶĞƐƐƉůĂŶ͘

dŚŝƐƉĂƌƚŚĂƐƚǁŽŵĂŝŶŽďũĞĐƟǀĞƐ͗
• dŽŚĞůƉLJŽƵůŽŽŬĂƚLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂĨƌŽŵŵĂƌŬĞƟŶŐ͕ŽƉĞƌĂƟŽŶƐ͕ĮŶĂŶĐĞ͕ĂŶĚ
ĂĐĐŽƵŶƟŶŐƉĞƌƐƉĞĐƟǀĞƐ
• dŽĚĞǀĞůŽƉĂĨĞĂƐŝďůĞĂŶĚŝŵƉůĞŵĞŶƚĂďůĞďƵƐŝŶĞƐƐƉůĂŶƚŚĂƚLJŽƵĂƌĞƌĞĂĚLJƚŽ
ƉƵƚŝŶƚŽĂĐƟŽŶ
>> Developing
a Marketing
Plan

7
WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ
WĞŽƉůĞ
WƌŽŵŽƟŽŶ
Place
Price
DĂƌŬĞƟŶŐ ŝƐ ĂŶ ĞƐƐĞŶƟĂů ĐŽŵƉŽŶĞŶƚ ƚŽ ĂŶLJ ďƵƐŝŶĞƐƐ͘ /Ŷ WĂƌƚ /͕ LJŽƵ ŝĚĞŶƟĮĞĚ Ă ŐƌŽƵƉ ŽĨ
ƉĞŽƉůĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJǁŚŽƐŚĂƌĞĚĂŶĞĞĚŽƌƉƌŽďůĞŵĂŶĚŐĞŶĞƌĂƚĞĚĂĨĞĂƐŝďůĞƉƌŽĚƵĐƚ
ŽƌƐĞƌǀŝĐĞŝĚĞĂƚŚĂƚǁŽƵůĚĮůůƚŚĂƚŶĞĞĚ͘KŶĐĞLJŽƵĨƵƌƚŚĞƌĚĞǀĞůŽƉƚŚĞƵŶŝƋƵĞǀĂůƵĞƚŚĂƚLJŽƵƌ
ŝĚĞĂĂĚĚƐ͕LJŽƵŵƵƐƚƚŚŝŶŬĐĂƌĞĨƵůůLJĂďŽƵƚŚŽǁƚŽĐŽŶǀĞLJƚŚĂƚƐƚŽƌLJƚŽƚŚĂƚŐƌŽƵƉŽĨƉĞŽƉůĞ
ƐŽƚŚĂƚƚŚĞLJďƵLJLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘zŽƵǁŝůůůĞĂƌŶƚŽĐŽŶǀĞLJƚŚĂƚƐƚŽƌLJƚŚƌŽƵŐŚĂĚĞĞƉ
ƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨWĞŽƉůĞ;ǁŚŽƐĞŶĞĞĚĂƌĞLJŽƵƌƐŽůǀŝŶŐ͍Ϳ͕WƌŽĚƵĐƚ;ǁŚĂƚŝƐLJŽƵƌƐŽůƵƟŽŶ͍Ϳ͕
WƌŽŵŽƟŽŶ ;ŚŽǁ ǁŝůů LJŽƵ ĐŽŵŵƵŶŝĐĂƚĞ LJŽƵƌ ƐŽůƵƟŽŶ͍Ϳ͕ WůĂĐĞ ;ǁŚĞƌĞ ĐĂŶ ƚŚĞLJ ďƵLJ LJŽƵƌ
ƉƌŽĚƵĐƚ͍Ϳ͕ĂŶĚWƌŝĐĞ;ĂƚǁŚĂƚƉƌŝĐĞĐĂŶƚŚĞLJďƵLJLJŽƵƌƉƌŽĚƵĐƚ͍Ϳ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Mission statement:ŽŶǀĞLJƐLJŽƵƌ ZĞĂĐŚĂŶĚ&ƌĞƋƵĞŶĐLJ͗ZĞĂĐŚŝƐ

ƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂĂŶĚŝƚƐ
ŝŵƉŽƌƚĂŶĐĞŝŶĂƐŚŽƌƚ͕ĐŽŶĐŝƐĞ͕ĂŶĚ
ƉŽǁĞƌĨƵůǁĂLJ͘
DĂƌŬĞƟŶŐDŝdž͗dŚĞŵŝdžŝƐŵĂĚĞƵƉ
ŽĨƚŚĞϱďĂƐŝĐĞůĞŵĞŶƚƐŬŶŽǁŶĂƐ
ƚŚĞϱW͛Ɛ͗WƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͕WƌŝĐĞ͕
WůĂĐĞ͕WƌŽŵŽƟŽŶ͕ĂŶĚWĞŽƉůĞ͘
Target:dŚĞƉŽƉƵůĂƟŽŶŽƌŐƌŽƵƉ
ŽĨƉĞŽƉůĞǁŚŽǁĂŶƚƐƚŽďƵLJLJŽƵƌ
ƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘dŚĞƐĞĂƌĞ
ƚŚĞƉĞŽƉůĞLJŽƵǁŝůůĚŝƌĞĐƚLJŽƵƌ
ŵĂƌŬĞƟŶŐŵĞƐƐĂŐĞƐƚŽ͘
Networking:hƟůŝnjŝŶŐƚŚĞƉĞŽƉůĞ
ĂŶĚƉůĂĐĞƐĂƌŽƵŶĚLJŽƵƚŽŵĂƌŬĞƚ
LJŽƵƌďƵƐŝŶĞƐƐ͘
ƚŚĞŶƵŵďĞƌŽĨƉĞŽƉůĞLJŽƵƚŽƵĐŚ
ǁŝƚŚLJŽƵƌŵĂƌŬĞƟŶŐŵĞƐƐĂŐĞ
ŽƌƚŚĞŶƵŵďĞƌŽĨƉĞŽƉůĞƚŚĂƚ
ĂƌĞĞdžƉŽƐĞĚƚŽLJŽƵƌŵĞƐƐĂŐĞ͘
&ƌĞƋƵĞŶĐLJŝƐƚŚĞŶƵŵďĞƌŽĨƟŵĞƐ
LJŽƵƚŽƵĐŚĞĂĐŚƉĞƌƐŽŶǁŝƚŚLJŽƵƌ
ŵĞƐƐĂŐĞ͘ZĞŵĞŵďĞƌƚŚŝƐƌƵůĞ
ǁŚĞŶĐŽŶƐŝĚĞƌŝŶŐLJŽƵƌƌĞĂĐŚǀƐ͘
ĨƌĞƋƵĞŶĐLJŽƉƟŽŶƐ͗ZĞĂĐŚǁŝƚŚŽƵƚ
&ƌĞƋƵĞŶĐLJсtĂƐƚĞĚZĞƐŽƵƌĐĞƐ͘/ƚ
ŵĂLJďĞŵŽƌĞĞīĞĐƟǀĞƚŽƚŽƵĐŚĂ
ƐŵĂůůŶƵŵďĞƌŽĨƉĞŽƉůĞŵĂŶLJƟŵĞƐ
ƚŚĂŶƚŽƚŽƵĐŚĂůĂƌŐĞŶƵŵďĞƌŽĨ
ƉĞŽƉůĞŽŶůLJŽŶĐĞ͘
 Lesson 7.1: Product or Service
/ŶWĂƌƚ/͕LJŽƵǁĞŶƚĨƌŽŵŚĂǀŝŶŐĂŶŝĚĞĂŽŶŚŽǁƚŽƐŽůǀĞĂĐŽŵŵƵŶŝƚLJŶĞĞĚƚŽǀĞƌŝĨLJŝŶŐ͕ƐůŝŐŚƚůLJĂůƚĞƌŝŶŐ͕
ŽƌĐŽŵƉůĞƚĞůLJƌĞƚŚŝŶŬŝŶŐƚŚĂƚŝĚĞĂďĂƐĞĚŽŶĚŝƌĞĐƚĨĞĞĚďĂĐŬĨƌŽŵƉĞŽƉůĞ͘EŽǁƚŚĂƚLJŽƵŚĂǀĞĂƐŽůŝĚŝĚĞĂ͕
LJŽƵǁŝůůĚĞǀĞůŽƉĂŵĂƌŬĞƟŶŐƐƚƌĂƚĞŐLJƚŚĂƚǁŝůůŚĞůƉĂůůŽǁLJŽƵƚŽĐůĞĂƌůLJĐŽŵŵƵŶŝĐĂƚĞƚŚƌŽƵŐŚĞǀĞƌLJƚŚŝŶŐ
LJŽƵĚŽŚŽǁĞdžĂĐƚůLJLJŽƵƌŝĚĞĂƉƌŽǀŝĚĞƐƵŶŝƋƵĞǀĂůƵĞƚŽƚŚĂƚŐƌŽƵƉŽĨƉĞŽƉůĞ͘dŚĞĮƌƐƚƉĂƌƚŽĨĚĞǀĞůŽƉŝŶŐ
ƚŚŝƐƐƚƌĂƚĞŐLJŝƐďĞŝŶŐĂďůĞƚŽĐůĞĂƌůLJƐƚĂƚĞǁŚĂƚLJŽƵĂƌĞƐƚƌŝǀŝŶŐƚŽĚŽĂŶĚǁŚLJ͘dŚŝƐŝƐĐĂůůĞĚďƵŝůĚŝŶŐĂ
ŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚ͘dŚŝƐĐŽŶǀĞLJƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂĂŶĚŝƚƐŝŵƉŽƌƚĂŶĐĞŝŶĂƐŚŽƌƚ͕ĐŽŶĐŝƐĞ͕ĂŶĚ
ƉŽǁĞƌĨƵůǁĂLJ͘ǁĞůůͲǁƌŝƩĞŶŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚĐĂŶďĞƚŚĞŐƵŝĚŝŶŐĨŽƵŶĚĂƟŽŶĨŽƌĂďƵƐŝŶĞƐƐ͘

Your Business Plan

Exercise 7.1: Your Mission Statement
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
ĂƐĞĚŽŶƚŚĞŝŶĨŽƌŵĂƟŽŶLJŽƵŚĂǀĞĨƌŽŵWĂƌƚ/͕ĐƌĞĂƚĞĂŵŝƐƐŝŽŶƐƚĂƚĞŵĞŶƚƚŚĂƚĚĞƐĐƌŝďĞƐƚŚĞ Exercise 7.1͕ƚƵƌŶƚŽƚŚĞ
ŝĚĞĂLJŽƵĚĞǀĞůŽƉĞĚĂůŽŶŐǁŝƚŚƚŚĞĐŽŵŵƵŶŝƚLJŶĞĞĚŝƚĮůůƐ͘ ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
_______________________________________ LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗

_______________________________________ Product or Service

^ŽůƵƟŽŶ͗
_______________________________________ DŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐ
_______________________________________ LJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ
ŝĚĞĂŝŶĂŶĚŝƚƐŝŵƉŽƌƚĂŶĐĞ
_______________________________________ ŝŶĂƐŚŽƌƚ͕ĐŽŶĐŝƐĞ͕ĂŶĚ
ƉŽǁĞƌĨƵůǁĂLJ͘ĞƐƵƌĞƚŽ
_______________________________________ ŝŶĐůƵĚĞŝŶLJŽƵƌĚĞƐĐƌŝƉƟŽŶ
LJŽƵƌŝĚĞĂ͕ƚŚĞŶĞĞĚLJŽƵĂƌĞ
_______________________________________ ŵĞĞƟŶŐ͕ĂŶĚƚŚĞƉĞŽƉůĞ
ǁŚŽǁŝůůďĞŶĞĮƚĨƌŽŵLJŽƵƌ
_______________________________________ ŝĚĞĂ͘

Lesson 7.2: People

tŚŽĂƌĞƚŚĞƉĞŽƉůĞǁŚŽǁŝůůďĞŶĞĮƚĨƌŽŵLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂ͍ĂƐĞĚŽŶƚŚĞŝŶĨŽƌŵĂƟŽŶLJŽƵ
ŐĂƚŚĞƌĞĚǁŚĞŶĐŽŶĚƵĐƟŶŐŝŶƚĞƌǀŝĞǁƐ͕LJŽƵƐŚŽƵůĚďĞĂďůĞƚŽƚĂůŬĂďŽƵƚƚŚĞĨŽůůŽǁŝŶŐ͗

ͻWĞƌƐŽŶĂůŝŶĨŽƌŵĂƟŽŶ͗'ĞŶĚĞƌ͕ŝŶĐŽŵĞ͕ĂŐĞ͕ŽĐĐƵƉĂƟŽŶ͕ĞĚƵĐĂƟŽŶ͕ĨĂŵŝůLJ͕ůŝĨĞĐLJĐůĞ͕ŐĞŽŐƌĂƉŚŝĐ
ƌĞŐŝŽŶ͕ůŝĨĞƐƚLJůĞ͕ĂƫƚƵĚĞƐ
• Problem:EĞĞĚƐͬďĞŶĞĮƚƐƐŽƵŐŚƚďLJƚŚĞŵ͘
• Purchasing process:tŚĂƚĚŽĞƐƚŚĞĚĞĐŝƐŝŽŶŵĂŬŝŶŐƉƌŽĐĞƐƐŝŶǀŽůǀĞ͍tŚĂƚƐŽƵƌĐĞƐŽĨŝŶĨŽƌŵĂƟŽŶ
ĂƌĞƐŽƵŐŚƚƚŽŵĂŬĞĂĚĞĐŝƐŝŽŶ͍tŚĂƚŝƐƟŵĞůŝŶĞŽĨƉƵƌĐŚĂƐĞ͍tŚŽŵĂŬĞƐƚŚĞƉƵƌĐŚĂƐĞ͍
• Product usage:tŚŽŝƐƵƐŝŶŐƚŚĞƉƌŽĚƵĐƚ͍tŚLJĚŽƚŚĞLJƵƐĞŝƚ͍tŚĞŶĚŽƚŚĞLJƵƐĞŝƚ͍,ŽǁŝƐŝƚ
ƵƐĞĚ͍

/ƚ ŝƐ ĐƌŝƟĐĂů ƚŽ ƵŶĚĞƌƐƚĂŶĚ LJŽƵƌ ƚĂƌŐĞƚ ŵĂƌŬĞƚ ĂƐ ƚŚĞ ƉŝĐƚƵƌĞ LJŽƵ ŚĂǀĞ ŽĨ ƚŚĞŵ ǁŝůů ŐƵŝĚĞ Ăůů ŽĨ LJŽƵƌ
ŵĂƌŬĞƟŶŐƐƚƌĂƚĞŐLJĚĞĐŝƐŝŽŶƐŐŽŝŶŐĨŽƌǁĂƌĚ͘ǀĞƌLJƚŚŝŶŐLJŽƵĚŽƐŚŽƵůĚďĞŐƌŽƵŶĚĞĚŝŶŝŶĨŽƌŵĂƟŽŶLJŽƵ
ŬŶŽǁĂďŽƵƚƚŚĞƚĂƌŐĞƚŵĂƌŬĞƚƌĂƚŚĞƌƚŚĂŶďĂƐĞĚŽŶŐƵƚĨĞĞůŝŶŐŽƌǁŚĂƚǁŽƌŬƐĨŽƌĂŶŽƚŚĞƌďƵƐŝŶĞƐƐ͘

ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 107

 Exercise 7.2: Who are they?
hƐĞƚŚĞƋƵĞƐƟŽŶƐĂďŽǀĞƚŽƚŚŝŶŬĂďŽƵƚƚŚĞƉĞŽƉůĞŝŶƚŚĞŵĂƌŬĞƚĨŽƌLJŽƵƌŝĚĞĂ͘hƐĞ
ƚŚĞƐƉĂĐĞďĞůŽǁƚŽƌĞĐŽƌĚLJŽƵƌĂŶƐǁĞƌƐ͘

_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ĚƌĂǁĂĚĞƚĂŝůĞĚƉŝĐƚƵƌĞŽĨƚŚŽƐĞƉĞŽƉůĞ͘zŽƵŵĂLJŝŶĐůƵĚĞƚŚŝŶŐƐƚŚĞLJĂƌĞ
ƚŚŝŶŬŝŶŐ͕ƐĂLJŝŶŐŽƌĚŽŝŶŐŝŶLJŽƵƌƉŝĐƚƵƌĞŽƌĚŝĂŐƌĂŵ͘

108 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ

 Exercise 7.3: How do they use the product?
WƌŽǀŝĚĞĂĚĞƐĐƌŝƉƟŽŶďĞůŽǁƚŚĂƚĞdžƉůĂŝŶƐŚŽǁƚŚĞLJŝŶƚĞƌĂĐƚǁŝƚŚƚŚĞƉƌŽĚƵĐƚŽƌĞdžƉĞƌŝĞŶĐĞƚŚĞ
ƐĞƌǀŝĐĞ͘

_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ŝůůƵƐƚƌĂƚĞƚŚĞĂďŽǀĞĚĞƐĐƌŝƉƟŽŶ͘

Your Business Plan

KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Exercise 7.3͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗

DĂƌŬĞƟŶŐWůĂŶ͗
WĞŽƉůĞ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶ
ĚĞƚĂŝůƚŚĞƉĞŽƉůĞǁŚŽƐĞ
ŶĞĞĚLJŽƵƌƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞŝƐŵĞĞƟŶŐ͘ĞƐƵƌĞ
ƚŽŝŶĐůƵĚĞĚĞŵŽŐƌĂƉŚŝĐ
ŝŶĨŽƌŵĂƟŽŶĂƐǁĞůůĂƐŚŽǁ
ƚŚĞLJƵƐĞƚŚĞƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞ͘

ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 109

 Lesson 7.3: WƌŽŵŽƟŽŶ
ƌĂŶĚŝƐƚŚĞŝĚĞŶƟƚLJŽĨĂƐƉĞĐŝĮĐƉƌŽĚƵĐƚ͕ƐĞƌǀŝĐĞŽƌďƵƐŝŶĞƐƐ͘ďƌĂŶĚŝƐĞǀĞƌLJƚŚŝŶŐƚŚĂƚLJŽƵƌďƵƐŝŶĞƐƐ
ĐŽŵŵƵŶŝĐĂƚĞƐ ĂďŽƵƚ ŝƚƐĞůĨ ƚŽ ŽƚŚĞƌƐ ĨƌŽŵ ŝƚƐ ŶĂŵĞ͕ ůŽŐŽ͕ ĂŶĚ ĐŽůŽƌ ƉĂůĞƩĞ ƚŽ ŝƚƐ ŇLJĞƌ͕ ƐŝŐŶƐ͕ ĂŶĚ
ŵĂƌŬĞƟŶŐĐĂŵƉĂŝŐŶƐ͘ůĞŐĂůůLJƉƌŽƚĞĐƚĞĚďƌĂŶĚŶĂŵĞŝƐĐĂůůĞĚƚƌĂĚĞŵĂƌŬ͘ůůLJŽƵƌĚĞĐŝƐŝŽŶƐĂďŽƵƚLJŽƵƌ
ŵĂƌŬĞƟŶŐƐƚƌĂƚĞŐLJƐŚŽƵůĚďĞďĂƐĞĚŝŶƚŚĞďƌĂŶĚƚŚĂƚLJŽƵŚĂǀĞĚĞĮŶĞĚ͘/ŶƚŚŝƐůĞƐƐŽŶǁŝůůůĞĂƌŶŚŽǁƚŽ
ĚĞĮŶĞ͕ĐŽŵŵƵŶŝĐĂƚĞ͕ĂŶĚƉƌŽŵŽƚĞLJŽƵƌďƌĂŶĚ͘

ĞĮŶŝŶŐzŽƵƌƌĂŶĚ
dŚĞŵŽƐƚƉŽǁĞƌĨƵůǁĂLJƚŽĐŽŵŵƵŶŝĐĂƚĞǁŚŽLJŽƵĂƌĞĂƐĂďƵƐŝŶĞƐƐŝƐďLJďƵŝůĚŝŶŐĂƐƚƌŽŶŐĂŶĚƚŚŽƵŐŚƞƵů
ďƌĂŶĚ͘ǀĞƌLJƉĂƌƚŽĨLJŽƵƌďƌĂŶĚǁŚĞƚŚĞƌŝƚďĞƚŚĞůŽŐŽŽƌƚŚĞĐŽůŽƌƐLJŽƵƵƐĞŽŶƚŚĞŇLJĞƌ͕ƐŚŽƵůĚďĞ
ĚĞĐŝĚĞĚďĂƐĞĚŽŶǁŚĂƚLJŽƵŬŶŽǁĂďŽƵƚƚŚĞƉĞŽƉůĞǁŚŽƐĞŶĞĞĚLJŽƵĂƌĞŵĞĞƟŶŐƚŚƌŽƵŐŚLJŽƵƌƉƌŽĚƵĐƚ
ŽƌƐĞƌǀŝĐĞ͘zŽƵƌďƌĂŶĚŝĚĞŶƟƚLJŝƐůŝŬĞLJŽƵƌďƵƐŝŶĞƐƐ͛ƉĞƌƐŽŶĂůŝƚLJ͘&ŽƌĞdžĂŵƉůĞ͕ĂďƵƐŝŶĞƐƐƚŚĂƚƐĞůůƐĂƐŽĚĂ
ƉƌŽĚƵĐƚŵŝŐŚƚŚĂǀĞĂĨƵŶŽƌ͞ďƵďďůLJ͟ƉĞƌƐŽŶĂůŝƚLJ͕ƐŽLJŽƵŵŝŐŚƚĐƌĞĂƚĞĂŵĂƐĐŽƚŽƌŝĐŽŶƚŚĂƚĚĞŵŽŶƐƚƌĂƚĞƐ
ƚŚĂƚĐŚĂƌĂĐƚĞƌŝƐƟĐŽƌĐŚĂƌĂĐƚĞƌ͘/ĨLJŽƵƌŐŽĂůŝƐƋƵĂůŝƚLJ͕ƚŚĞŶLJŽƵŵĂLJŚĂǀĞĂŵŽƌĞĞdžƉĞŶƐŝǀĞƉƌŽĚƵĐƚĂŶĚ
LJŽƵƌŵĞƐƐĂŐŝŶŐƐŚŽƵůĚƌĞŇĞĐƚŝƚƐďĞŶĞĮƚƐŝŶƐƚĞĂĚŽĨŝƚƐƉƌŝĐĞ͘

tŚŝůĞĚĞĮŶŝŶŐLJŽƵƌďƌĂŶĚŝƐĂĐƌƵĐŝĂůĮƌƐƚƐƚĞƉ͕ŝƚŝƐƚŚĞŶŶĞĐĞƐƐĂƌLJƚŚĂƚLJŽƵĐŽŶƐŝƐƚĞŶƚůLJƵƐĞƚŚĂƚďƌĂŶĚ
ŝŶ Ăůů LJŽƵƌ ŵĞƐƐĂŐŝŶŐ͘ dŚĂƚ ŵĞĂŶƐ ŝĨ LJŽƵ ƵƐĞ Ă ůŽŐŽ͕ ĂůǁĂLJƐ ƵƐĞ ƚŚĞ ƐĂŵĞ ůŽŐŽ͕ ŝŶ ƚŚĞ ƐĂŵĞ ĨŽƌŵĂƚ͕
ǁŚĞŶĞǀĞƌŝƚŝƐƉƌŝŶƚĞĚ͘/ĨLJŽƵƵƐĞĂƐůŽŐĂŶ͕ŵĂŬĞƐƵƌĞŝƚŝƐĂůǁĂLJƐǁƌŝƩĞŶŝŶƚŚĞƐĂŵĞǁĂLJ͘ƐLJŽƵƉůĂŶĨŽƌ
ĂĚǀĞƌƟƐŝŶŐŽƌƐƉĞĐŝĂůƉƌŽŵŽƟŽŶƐ͕ŵĂŬĞƐƵƌĞƚŚĂƚŝƚŝƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚLJŽƵƌŝŵĂŐĞ͘

KŶĞĞdžĂŵƉůĞLJŽƵŵĂLJďĞĨĂŵŝůŝĂƌǁŝƚŚŝƐDƌ͘WƌŝĐĞ͕ƚŚĞĐůŽƚŚŝŶŐŐƌŽƵƉŽĨĂ^ŽƵƚŚĨƌŝĐĂŶƌĞƚĂŝůŝŶŐŐŝĂŶƚ͘
Dƌ͘WƌŝĐĞĐŽǀĞƌƐĂůůŐĞŶĚĞƌƐŝŶĐůŽƚŚŝŶŐ͕ŝŶƟŵĂƚĞǁĞĂƌ͕ĨŽŽƚǁĞĂƌĂŶĚĂĐĐĞƐƐŽƌŝĞƐƚŚĂƚĂƌĞĂŝŵĞĚƚŽǁĂƌĚƐ
ĨĂƐŚŝŽŶĐŽŶƐĐŝŽƵƐĂŶĚǀĂůƵĞͲŵŝŶĚĞĚĨĂŵŝůŝĞƐ͘ƐƚŚĞKŽĨƚŚĞĐŽŵƉĂŶLJĚĞƐĐƌŝďĞƐ͕ƚŚĞĐŽŵƉĂŶLJďƌŝŶŐƐ
ĨĂƐŚŝŽŶĂƚĞǀĞƌLJĚĂLJůŽǁƉƌŝĐĞƐƚŽƚŚĞŝƌĐŽŶƐƵŵĞƌƐ͘dŚƵƐ͕ƚŚĞŶĂŵĞ͞Dƌ͘WƌŝĐĞ͟ŝƐƚŚĞƉĞƌĨĞĐƚŶĂŵĞƚŽ
ƌĞŇĞĐƚƚŚĞǀĂůƵĞƚŚĂƚƚŚĞĐŽŵƉĂŶLJƉƌŽǀŝĚĞƐůŽǁĐŽƐƚĐůŽƚŚĞƐƚŽŝƚƐĐƵƐƚŽŵĞƌƐ͘

Exercise 7.4: Branding

ĂŶ LJŽƵ ŐŝǀĞ ƚŚƌĞĞ ŽƚŚĞƌ ĞdžĂŵƉůĞƐ ŽĨ ďƌĂŶĚŝŶŐ ƚŚĂƚ ĂƌĞ ĨĂŵŝůŝĂƌ ĂŶĚ ƌĞĐŽŐŶŝnjĂďůĞ ŝŶ LJŽƵƌ
ĐŽŵŵƵŶŝƚLJ͍tŚĂƚŝŵĂŐĞƐ͕ĐŽůŽƌƐ͕ƐŽƵŶĚƐ͕ƚĞdžƚƵƌĞƐ͕ƐŵĞůůƐ͕ŽƌǁŽƌĚƐĚŽLJŽƵĂƐƐŽĐŝĂƚĞǁŝƚŚƚŚĂƚ
ďƵƐŝŶĞƐƐ͍

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110 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ

 Exercise 7.5: Developing Your Brand
ƌĂǁǁŚĂƚŝŵĂŐĞƐ͕ĐŽůŽƌƐ͕ƐŽƵŶĚƐ͕ƚĞdžƚƵƌĞƐ͕ƐŵĞůůƐ͕ŽƌǁŽƌĚƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂŵĂŬĞƐLJŽƵƚŚŝŶŬŽĨ͘ŝƌĐůĞƚŚŽƐĞǁŚŝĐŚLJŽƵƚŚŝŶŬ
ďĞƐƚĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌďƵƐŝŶĞƐƐ͘dŚĞŶ͕ďĂƐĞĚŽŶǁŚĂƚLJŽƵŚĂǀĞĐŝƌĐůĞĚ͕ĚĞǀĞůŽƉŐƵŝĚĞůŝŶĞƐĨŽƌLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJ͘tŚĂƚĐŽůŽƌƐ͕ůŽŐŽ͕
ƐůŽŐĂŶ͕ŽƌŝŵĂŐĞƐƐŚŽƵůĚLJŽƵƵƐĞƚŽĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌďƵƐŝŶĞƐƐ͍dŚĞƐĞŐƵŝĚĞůŝŶĞƐĂƌĞŝŵƉŽƌƚĂŶƚĂƐLJŽƵǁŝůůƌĞĨĞƌĞŶĐĞƚŚĞƐĞĂƐLJŽƵŵĂŬĞ
ĚĞĐŝƐŝŽŶƐĂďŽƵƚĐŽŵŵƵŶŝĐĂƟŶŐĂŶĚƉƌŽŵŽƟŶŐLJŽƵƌďƌĂŶĚ͘

ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 111

 ŽŵŵƵŶŝĐĂƟŶŐzŽƵƌƌĂŶĚ
EŽǁƚŚĂƚLJŽƵŚĂǀĞĚĞǀĞůŽƉĞĚĂƐĞŶƐĞŽĨLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽƐƚĂƌƚƚŚŝŶŬŝŶŐĂďŽƵƚŚŽǁ
ƚŽĐŽŵŵƵŶŝĐĂƚĞƚŚŝƐŝĚĞŶƟƚLJ͘dŚĞƌĞĂƌĞŵĂŶLJĚŝīĞƌĞŶƚŵĂƌŬĞƟŶŐŵĂƚĞƌŝĂůƐLJŽƵĐĂŶŵĂŬĞͲͲƐŽŵĞǁŚŝĐŚ
ŵĂLJĐŽƐƚŵŽƌĞƚŚĂŶŽƚŚĞƌƐ͘dŚĞƌĞĂƌĞŵĂŶLJĚŝīĞƌĞŶƚǁĂLJƐLJŽƵĐĂŶĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌďƌĂŶĚďƵƚLJŽƵǁŝůů
ƉƌŽďĂďůLJŽŶůLJŵĂŬĞƵƐĞŽĨĂĨĞǁŽĨƚŚĞŵŽƌŵĂLJďĞŶŽŶĞĂƚĂůůͲͲŝƚƌĞĂůůLJĚĞƉĞŶĚƐŽŶǁŚĂƚŝƐŵŽƐƚŝŶůŝŶĞ
ǁŝƚŚLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJ͘,ĞƌĞĂƌĞƐŽŵĞĚŝīĞƌĞŶƚǁĂLJƐLJŽƵĐĂŶĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌďƌĂŶĚ͗

Brochures, Fliers, and other handouts.WƌŽĚƵĐŝŶŐďƌŽĐŚƵƌĞƐŽƌŇŝĞƌƐŝƐĂŐƌĞĂƚǁĂLJƚŽƉƌŽǀŝĚĞƚŚĞŵŽƐƚ

ŝŶĨŽƌŵĂƟŽŶĂďŽƵƚLJŽƵƌƉƌŽĚƵĐƚŝŶŽŶĞĚŽĐƵŵĞŶƚ͘&ůŝĞƌƐĂƌĞƵƐƵĂůůLJŽŶĞƉĂŐĞŝŶƐŝnjĞĂŶĚĐĂŶďĞŽŶĞͲ
ƐŝĚĞĚŽƌƚǁŽͲƐŝĚĞĚ͘dŚĞƌĞŝƐůĞƐƐƌŽŽŵĨŽƌŐƌĞĂƚĚĞƚĂŝůŽŶĂŇŝĞƌƚŚĂŶŝŶĂďƌŽĐŚƵƌĞ͕ƐŽLJŽƵŵƵƐƚĐŚŽŽƐĞ
ƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚĂŶĚƐŝŐŶŝĮĐĂŶƚŝŶĨŽƌŵĂƟŽŶƚŽŝŶĐůƵĚĞ͘tŚĞƚŚĞƌLJŽƵĂƌĞŵĂŬŝŶŐĂŇLJĞƌ͕ďƌŽĐŚƵƌĞ͕
ŽƌƐŽŵĞŽƚŚĞƌŚĂŶĚŽƵƚ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽŵĂŬĞƐƵƌĞLJŽƵŚĂǀĞĂĐůĞĂƌŵĞƐƐĂŐĞĂŶĚŐŽĂůďĞĨŽƌĞLJŽƵƐƚĂƌƚ
ŵĂŬŝŶŐŝƚ͘ĞĨŽƌĞLJŽƵƐƚĂƌƚ͕ĐŽŶƐŝĚĞƌƚŚĞƐĞĞůĞŵĞŶƚƐ͗

• tŚŽǁŝůůƌĞĂĚƚŚĞďƌŽĐŚƵƌĞ͍
• ,ŽǁǁŝůůƚŚĞƌĞĂĚĞƌƐŐĞƚƚŚĞďƌŽĐŚƵƌĞ͍
• tŚĂƚĚŽLJŽƵǁĂŶƚLJŽƵƌƌĞĂĚĞƌƐƚŽůĞĂƌŶĨƌŽŵLJŽƵƌďƌŽĐŚƵƌĞĂŶĚĚŽŽŶĐĞƚŚĞLJŚĂǀĞƚŚĂƚ
ŝŶĨŽƌŵĂƟŽŶ͍

tŚĞŶĐŽŶƐŝĚĞƌŝŶŐƚŚĞƵƐĞŽĨƉƌŝŶƚĞĚŵĂƚĞƌŝĂůƐ͕LJŽƵŵƵƐƚŬĞĞƉŝŶŵŝŶĚǁŚĂƚŝƚǁŝůůĐŽƐƚƚŽƉƌŽĚƵĐĞĂŶĚ
ĚŝƐƚƌŝďƵƚĞƚŚĞƐĞŝƚĞŵƐ͘WƌŝŶƚĞĚŵĂƚĞƌŝĂůƐĂůŵŽƐƚĂůǁĂLJƐƌĞƋƵŝƌĞƐŽŵĞĨŽƌŵŽĨǁŽƌĚͲƉƌŽĐĞƐƐŝŶŐƐŽŌǁĂƌĞ
ŝĨLJŽƵƉůĂŶƚŽĐƌĞĂƚĞLJŽƵƌƉŝĞĐĞŽŶĂĐŽŵƉƵƚĞƌ͕ĂƌĞƐŽƵƌĐĞĨŽƌĐŽƉLJŝŶŐŽƌŵĂŬŝŶŐŵĂŶLJĐŽƉŝĞƐŽĨƚŚĞ
ƐĂŵĞĚŽĐƵŵĞŶƚ͕ĂŶĚĂůĂƌŐĞƋƵĂŶƟƚLJŽĨƉĂƉĞƌ͘ůƚŚŽƵŐŚƚŚŝƐŵĂLJƐĞĞŵůŝŬĞŝƚǁŝůůĐŽƐƚƚŽŽŵƵĐŚǁŚĞŶ
LJŽƵĂƌĞĮƌƐƚƐƚĂƌƟŶŐͲƵƉ͕ďĞĐƌĞĂƟǀĞĂďŽƵƚĮŶĚŝŶŐƌĞƐŽƵƌĐĞƐĨŽƌƚŚĞƐĞŝƚĞŵƐ͘DĂLJďĞLJŽƵŬŶŽǁƐŽŵĞŽŶĞ
ǁŚŽĐĂŶƐƵƉƉůLJLJŽƵǁŝƚŚŝŶŬŽƌƉĂƉĞƌĂƚǀĞƌLJůŽǁƉƌŝĐĞƐ͕ŽƌLJŽƵĐĂŶƚƌĂĚĞƐĞƌǀŝĐĞƐǁŝƚŚƐŽŵĞŽŶĞƚŽŚĞůƉ
LJŽƵŵĂƐƐƉƌŽĚƵĐĞƚŚĞŝƚĞŵƐ͘/ĨLJŽƵŚĂǀĞĂĐŽŵƉƵƚĞƌĂƚƐĐŚŽŽůŽƌŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJ͕LJŽƵĐĂŶƉƌŽďĂďůLJ
ĂĐĐĞƐƐǁŽƌĚͲƉƌŽĐĞƐƐŝŶŐƐŽŌǁĂƌĞĨŽƌĂǀĞƌLJůŽǁĐŽƐƚŽƌŶŽĐŽƐƚĂƚĂůů͘zŽƵƐŚŽƵůĚĂůƐŽĐŽŶƐŝĚĞƌŚŽǁĂŶĚ
ǁŚĞƌĞLJŽƵǁŽƵůĚĚŝƐƚƌŝďƵƚĞĞĂĐŚƚLJƉĞŽĨƉƌŝŶƚĞĚŵĂƚĞƌŝĂůƐ͘ŽŵŵƵŶŝƚLJĞǀĞŶƚƐĂŶĚƉƵďůŝĐĂƌĞĂƐĂƌĞŐƌĞĂƚ
ƉůĂĐĞƐƚŽƐŚĂƌĞLJŽƵƌŝŶĨŽƌŵĂƟŽŶĂƚŶŽĐŽƐƚƚŽLJŽƵ;ĂŌĞƌƉƌŝŶƟŶŐĐŽƐƚƐ͘ͿzŽƵƐŚŽƵůĚĂůǁĂLJƐĮŶĚŽƵƚŝĨLJŽƵ
ĂƌĞĂůůŽǁĞĚƚŽĚŝƐƉůĂLJŽƌĚŝƐƚƌŝďƵƚĞŵĂƚĞƌŝĂůŝŶĂŐŝǀĞŶůŽĐĂƟŽŶďĞĨŽƌĞĚŽŝŶŐƐŽ͘

Packaging./ĨLJŽƵĂƌĞŐŽŝŶŐƚŽďĞƐĞůůŝŶŐĂƉƌŽĚƵĐƚƚŚĂƚƌĞƋƵŝƌĞƐƉĂĐŬĂŐŝŶŐ;ĂďŽdž͕ǁƌĂƉƉŝŶŐ͕ďĂŐŽƌŽƚŚĞƌ
ƉĂĐŬĂŐĞƚLJƉĞƚŽŬĞĞƉLJŽƵƌƉƌŽĚƵĐƚŝŶͿ͕ďĞƐƵƌĞƚŚĂƚLJŽƵƌĚĞƐŝŐŶŝƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJ͘
WĂĐŬĂŐŝŶŐ ĐĂŶ ďĞ ĂƐ ƐŝŵƉůĞ ĂƐ Ă ƐƋƵĂƌĞ ďŽdž͕ Žƌ ŝƚ ĐĂŶ ƐƚĂŶĚ ŽƵƚ ǁŝƚŚ ŝŵƉƌŽǀĞĚ ƌĞƐĞĂůĂďůĞ ĞůĞŵĞŶƚƐ͕
ƌĞĐLJĐůĂďůĞŵĂƚĞƌŝĂůƐ͕ŽƌƉƌŽǀŝĚĞƐŽŵĞƐŽƌƚŽĨůĂƐƟŶŐƋƵĂůŝƚLJďĞLJŽŶĚƚŚĞƉƌŽĚƵĐƚ͛ƐŽǁŶĐŚĂƌĂĐƚĞƌŝƐƟĐƐ
ƚŚĂƚĐĂŶďĞďĞŶĞĮĐŝĂůƚŽĐƵƐƚŽŵĞƌƐ͘DĂŬĞŝƚƐƚĂŶĚŽƵƚ͘zŽƵƌĐŚŽŝĐĞŵĂLJďĞĂƐƐŝŵƉůĞĂƐĂŶĂƩƌĂĐƟǀĞ
ĐŽůŽƌŽƌŝŵĂŐĞ͕ŽƌŵĂLJďĞĂƐĐŽŵƉůĞdžĂƐĚĞƐŝŐŶŝŶŐĂĐŽŶƚĂŝŶĞƌƚŚĂƚĐĂŶǁŝƚŚƐƚĂŶĚƌĞƵƐĞ͘/ĨLJŽƵĂƌĞŐŽŝŶŐ
ƚŽĐƌĞĂƚĞĂƵŶŝƋƵĞƉĂĐŬĂŐĞĨŽƌLJŽƵƌƉƌŽĚƵĐƚ͕LJŽƵƐŚŽƵůĚĨŽĐƵƐŽŶŵĂŬŝŶŐƐƵƌĞƚŚĂƚŝƚŝƐƵƐŝŶŐƚŚĞůĞĂƐƚ
ĂŵŽƵŶƚŽĨŵĂƚĞƌŝĂůƐƉŽƐƐŝďůĞ;ǁŚŝůĞƐƟůůĐŽŵŵƵŶŝĐĂƟŶŐLJŽƵƌďƌĂŶĚĂŶĚƉƌŽƚĞĐƟŶŐƚŚĞƉƌŽĚƵĐƚͿƐŽƚŚĂƚ
ŝƚŝƐůŽǁͲĐŽƐƚĂŶĚĐŽŶƐƵŵŝŶŐůĞƐƐŽĨƚŚĞĞĂƌƚŚ͛ƐƌĞƐŽƵƌĐĞƐ͘/ƚǁŝůůĂůƐŽďĞŝŵƉŽƌƚĂŶƚƚŽƚŚŝŶŬĂďŽƵƚŚŽǁ
LJŽƵƌƉĂĐŬĂŐŝŶŐŝƐĚŝīĞƌĞŶƚŽƌŝŵƉƌŽǀĞĚĨƌŽŵƚŚĂƚŽĨLJŽƵƌĐŽŵƉĞƟƚŽƌƐ͘

Website and emails.dŽĚĂLJ͕ĐŽŵƉĂŶŝĞƐĂƌĞŝŶĐƌĞĂƐŝŶŐůLJƵƐŝŶŐƚŚĞ/ŶƚĞƌŶĞƚƚŽŵĂƌŬĞƚƚŚĞŝƌƉƌŽĚƵĐƚƐĂŶĚ

ƐĞƌǀŝĐĞƐ͘ƚĂďĂƐŝĐůĞǀĞů͕ƚŚĞǁĞďĐŽƵůĚďĞƵƐĞĚƚŽĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚLJŽƵƌĐƵƐƚŽŵĞƌƐĂŶĚŵĂƌŬĞƚŶĞǁ
ƉƌŽĚƵĐƚŽīĞƌŝŶŐƐĂŶĚƉƌŝĐĞŝŶĨŽƌŵĂƟŽŶƚŽƚŚĞŵ͘/ĨLJŽƵŚĂǀĞĂĐĐĞƐƐƚŽĂŶ/ŶƚĞƌŶĞƚĐĂĨĠŽƌŚĂǀĞĂĨƌŝĞŶĚ
ǁŚŽŚĂƐĂĐŽŵƉƵƚĞƌǁŝƚŚ/ŶƚĞƌŶĞƚĂĐĐĞƐƐ͕LJŽƵƐŚŽƵůĚƵƐĞƚŚĂƚƚŽĐƌĞĂƚĞĂŶĞŵĂŝůĂĐĐŽƵŶƚĨŽƌLJŽƵƌƐĞůĨ͘
/ƚŝƐǀĞƌLJĞĂƐLJƚŽƐĞƚƵƉĂŶĞŵĂŝůĂĐĐŽƵŶƚ͕ĂŶĚŝƚŝƐĨƌĞĞŽĨĐŽƐƚ͘zŽƵĐŽƵůĚĐŽůůĞĐƚĞŵĂŝůĂĚĚƌĞƐƐĞƐŽĨLJŽƵƌ
ĐƵƐƚŽŵĞƌƐŽƌĞǀĞŶƉƌŽƐƉĞĐƟǀĞĐƵƐƚŽŵĞƌƐ͘zŽƵŵĂLJĐŚŽŽƐĞƚŽƵƐĞƚŚĞŝƌĞŵĂŝůĂĚĚƌĞƐƐĞƐƚŽƐĞŶĚŽƵƚ
ǁĞĞŬůLJŽƌŵŽŶƚŚůLJŝŶĨŽƌŵĂƟŽŶĂďŽƵƚLJŽƵƌďƵƐŝŶĞƐƐƚŽƚŚĞŵ͘ĞƐƵƌĞŶŽƚƚŽŽǀĞƌͲĐŽŵŵƵŶŝĐĂƚĞ͕ĂŶĚŽŶůLJ
ĞŵĂŝůƚŚĞŵǁŚĞŶLJŽƵŚĂǀĞǀĂůƵĂďůĞŝŶĨŽƌŵĂƟŽŶƚŚĂƚLJŽƵƚŚŝŶŬƚŚĞLJǁŽƵůĚďĞŝŶƚĞƌĞƐƚĞĚŝŶůĞĂƌŶŝŶŐ͘

tŚĂƚĐŽŵŵƵŶŝĐĂƟŽŶŵĞƚŚŽĚƐLJŽƵĚĞĐŝĚĞƚŽƵƐĞƌĞĂůůLJĂůůĚĞƉĞŶĚŽŶLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJ͘&ŽƌĞdžĂŵƉůĞ͕
ƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚĞĂŵǁĂƐĂƚĮƌƐƚƌĞĂůůLJĞdžĐŝƚĞĚƚŽĐƌĞĂƚĞĂƐĞƚŽĨŇLJĞƌƐ͕ďƌŽĐŚƵƌĞƐ͕
ĂŶĚƐŝŐŶƐǁŝƚŚůŽƚƐŽĨĚĞƚĂŝůƐĂŶĚŝŵĂŐĞƐĚĞƐĐƌŝďŝŶŐƚŚĞŝƌďƵƐŝŶĞƐƐ͘ƵƚĂŌĞƌĚĞĮŶŝŶŐƚŚĞŝƌďƌĂŶĚ͕ƚŚĞLJ
ƌĞĂůŝnjĞĚƚŚĂƚƚŚĞŝƌŝĚĞŶƟƚLJǁĂƐĂůůĂďŽƵƚďĞŝŶŐĐůĞĂŶĂŶĚƉƌŽƚĞĐƟŶŐƚŚĞĞĂƌƚŚ͘dŚĞLJĚĞĐŝĚĞĚƚŚĂƚƚŚĞƌĞ
ǁŝůůŶŽƚďĞĂŐƌĞĂƚŶĞĞĚƚŽĐƌĞĂƚĞĂůůƚŚĞƐĞŵĂƚĞƌŝĂůƐĂƐƚŚĞLJǁŝůůůŝŬĞůLJŽŶůLJƌĞĂůůLJŶĞĞĚŽŶĞƐŝŵƉůĞŇLJĞƌ
ƚŽĞdžƉůĂŝŶƚŚĞŝƌďƵƐŝŶĞƐƐŝĚĞĂƚŚĂƚĐĂŶďĞƉĂƐƐĞĚŽƵƚ͘dŚĞLJĂůƐŽǁĂŶƚƚŽďĞƐƵƌĞƚŚĂƚƚŚĞLJĂƌĞďĞŝŶŐ
ƐƵƐƚĂŝŶĂďůĞĂŶĚŵŝŶŝŵŝnjŝŶŐƚŚĞĂŵŽƵŶƚŽĨǁĂƐƚĞƚŚĂƚƚŚĞLJĐƌĞĂƚĞ͘

112 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ

 Exercise 7.6: Brochures and Fliers
sŝƐŝƚƐŽŵĞďƵƐŝŶĞƐƐĞƐŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚĐŽůůĞĐƚƚŚƌĞĞŽƌĨŽƵƌďƌŽĐŚƵƌĞƐĂŶĚƵƐĞƚŚĞŵƚŽ
ĂŶƐǁĞƌ ƚŚĞƐĞ ƋƵĞƐƟŽŶƐ͘ zŽƵ ŵĂLJ ǁĂŶƚ ƚŽ ƐĂǀĞ ƚŚĞŵ ĨŽƌ ƌĞĨĞƌĞŶĐĞ ĂƐ LJŽƵ ĚĞǀĞůŽƉ LJŽƵƌ ŽǁŶ
ĚŽĐƵŵĞŶƚƐ͘

tŚĂƚĞůĞŵĞŶƚƐĚŽƚŚĞĚŽĐƵŵĞŶƚƐŚĂǀĞŝŶĐŽŵŵŽŶ;ĚĞƐŝŐŶ͕ŝŶĨŽƌŵĂƟŽŶ͕ƋƵĂůŝƚLJ͕ĞƚĐ͘ͿƚŚĂƚŵĂŬĞ
ƚŚĞŵĞīĞĐƟǀĞ͍

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tŚĂƚĂƌĞƚŚĞƐƚƌĞŶŐƚŚƐĂŶĚǁĞĂŬŶĞƐƐĞƐŽĨĞĂĐŚďƌŽĐŚƵƌĞ͍

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tŚĞƌĞŚĂǀĞLJŽƵƐĞĞŶŇŝĞƌƐĨŽƌƉƌŽĚƵĐƚƐ͍

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>ŝƐƚĂĨĞǁƉůĂĐĞƐƚŚĂƚLJŽƵŵŝŐŚƚďĞĂďůĞƚŽĚŝƐƚƌŝďƵƚĞLJŽƵŽǁŶŇŝĞƌƐĨŽƌĨƌĞĞ͘

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tŚĂƚƐƚŽŽĚŽƵƚƚŽLJŽƵĂďŽƵƚĂŇŝĞƌLJŽƵŵŝŐŚƚŚĂǀĞƐĞĞŶƌĞĐĞŶƚůLJ͍ŽLJŽƵƌĞŵĞŵďĞƌǁŚĂƚƚŚĞ
ƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞǁĂƐƚŚĂƚǁĂƐďĞŝŶŐĂĚǀĞƌƟƐĞĚ͍

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ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 113

 Exercise 7.7: ŽŵŵƵŶŝĐĂƟŶŐzŽƵƌƌĂŶĚ
tŚĂƚŝĨĂŶLJŽĨƚŚĞƐĞŵĞƚŚŽĚƐŽĨĐŽŵŵƵŶŝĐĂƟŶŐǁŽƵůĚLJŽƵůŝŬĞƚŽƵƐĞĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͍hƐĞ
ƚŚĞƐƉĂĐĞďĞůŽǁƚŽǁƌŝƚĞŽƌĚƌĂǁǁŚĂƚLJŽƵǁŽƵůĚǁĂŶƚLJŽƵƌĐŽŵŵƵŶŝĐĂƟŽŶƐƚŽůŽŽŬůŝŬĞ͘&Žƌ
ĞdžĂŵƉůĞ͕ŝĨLJŽƵƉůĂŶŽŶŵĂŬŝŶŐĂŇLJĞƌ͕ƉůĂŶǁŚĂƚŝŶĨŽƌŵĂƟŽŶǁŽƵůĚŶĞĞĚƚŽďĞŝŶĐůƵĚĞĚĂƐǁĞůů
ĂƐŚŽǁLJŽƵƉůĂŶƚŽŵĂŬĞŝƚ͘

114 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ

WƌŽŵŽƟŶŐzŽƵƌƌĂŶĚ
ŌĞƌLJŽƵŚĂǀĞƚŚŽƵŐŚƚĂďŽƵƚǁĂLJƐƚŽĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌďƌĂŶĚ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽƚŚŝŶŬĂďŽƵƚŚŽǁƚŽ
ƉƌŽŵŽƚĞLJŽƵƌďƌĂŶĚ͘/ŶƉƌŽŵŽƟŶŐLJŽƵƌďƌĂŶĚLJŽƵǁŝůůůŝŬĞůLJŵĂŬĞƵƐĞŽĨĂŶLJŵĂƚĞƌŝĂůƐLJŽƵĐƌĞĂƚĞĚƚŽ
ŚĞůƉLJŽƵĐŽŵŵƵŶŝĐĂƚĞǁŚĞƚŚĞƌƚŚĂƚďĞĂŇLJĞƌ͕ďƌŽĐŚƵƌĞ͕ǁĞďƐŝƚĞ͕ŽƌĞŵĂŝů͘^ŽŵĞŽĨƚŚĞƐĞŵĂƌŬĞƟŶŐ
ŵĞƚŚŽĚƐĂƌĞĐŽŵƉůĞƚĞůLJĨƌĞĞƚŽƵƐĞǁŚŝůĞŽƚŚĞƌƐƌĞƋƵŝƌĞƐŽŵĞƌĞƐŽƵƌĐĞƐ͘tŚĂƚŝƐŵŽƐƚĐŽƐƚͲĞīĞĐƟǀĞĨŽƌ
LJŽƵĚĞƉĞŶĚƐŽŶLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJĂŶĚǁŚĂƚŝƐƚŚĞŵŽƐƚĂƉƉƌŽƉƌŝĂƚĞĨŽƌLJŽƵƌƐƉĞĐŝĮĐďƵƐŝŶĞƐƐ͘,ĞƌĞ
ĂƌĞƐŽŵĞĚŝīĞƌĞŶƚǁĂLJƐLJŽƵĐĂŶƉƌŽŵŽƚĞLJŽƵƌďƌĂŶĚ͗

Word of Mouth. tŽƌĚ ŽĨ ŵŽƵƚŚ ŝƐ ĚĞǀĞůŽƉĞĚ ǁŚĞŶ ƉĞŽƉůĞ ďĞĐŽŵĞ ĂǁĂƌĞ ŽĨ LJŽƵƌ ďƵƐŝŶĞƐƐ͕ ŚĂǀĞ
ĂŶ ŝŶƚĞƌĂĐƟŽŶ ĂŶĚ ƚŚĞŶ ƐŚĂƌĞ ƚŚĞŝƌ ĞdžƉĞƌŝĞŶĐĞƐ ǁŝƚŚ ŽƚŚĞƌƐ͘ tŽƌĚ ŽĨ ŵŽƵƚŚ ĐŽƵůĚ ďĞ ƉŽƐŝƟǀĞ Žƌ
ŶĞŐĂƟǀĞ͘dŚŝƐŵĞĂŶƐƚŚĂƚĞŶƐƵƌŝŶŐĂƉŽƐŝƟǀĞĞdžƉĞƌŝĞŶĐĞĨŽƌLJŽƵƌƚĂƌŐĞƚĐƵƐƚŽŵĞƌƐŝƐĐƌƵĐŝĂůͲͲĞƐƉĞĐŝĂůůLJ
ŝŶďƵƐŝŶĞƐƐĞƐƚŚĂƚŽīĞƌĂƐĞƌǀŝĐĞ͘'ŽŽĚƋƵĂůŝƚLJĂŶĚŐŽŽĚƐĞƌǀŝĐĞĂƌĞƐŽŵĞǁĂLJƐƚŽŐĞŶĞƌĂƚĞƉŽƐŝƟǀĞ
ĂƩĞŶƟŽŶ͘'ĞƚLJŽƵƌĐƵƐƚŽŵĞƌƐƚŽƚĂůŬĂďŽƵƚLJŽƵ͘zŽƵĐĂŶĚŽƚŚŝƐƚŚƌŽƵŐŚŶĞƚǁŽƌŬŝŶŐ͕ĂŶĚƉůĂLJŝŶŐĂƌŽůĞ
ŝŶ ŚŝŐŚůLJ ǀŝƐŝďůĞ ĞǀĞŶƚƐ͘ dŝĞ LJŽƵƌƐĞůĨ ŝŶƚŽ Ă ĐŽŵŵƵŶŝƚLJ ŽƌŐĂŶŝnjĂƟŽŶ ƚŚĂƚ ĚŽĞƐ ƐŽŵĞƚŚŝŶŐ ƚŽ ŝŵƉƌŽǀĞ
DLJĨƌŝĞŶĚWŚŝůŝƉǁŽƌŬƐ
ƚŚĞƋƵĂůŝƚLJŽĨůŝǀŝŶŐŝŶLJŽƵƌĂƌĞĂ͕ĂŶĚƉĞŽƉůĞǁŝůůĂƐƐŽĐŝĂƚĞLJŽƵĂŶĚLJŽƵƌƉƌŽĚƵĐƚǁŝƚŚŐŽŽĚĞƚŚŝĐƐĂŶĚ
ĂƚWƌŝŶƚdĞĐŚ͕ĂůŽĐĂůƉƌŝŶƚ
ďĞŚĂǀŝŽƌƐŽĨƚŚŽƐĞƉĞŽƉůĞĂŶĚŽƌŐĂŶŝnjĂƟŽŶƐ͘
ƐŚŽƉ͘,ĞƉƌŽĚƵĐĞƐŇŝĞƌƐ͕
ďƌŽĐŚƵƌĞƐĂŶĚƉŽƐƚĐĂƌĚƐ
Networking. EĞƚǁŽƌŬŝŶŐ ŝƐ ƚŚĞ ĂĐƚ ŽĨ ĚĞǀĞůŽƉŝŶŐ ŶĞǁ ƌĞůĂƟŽŶƐŚŝƉƐ͕ ǁŝƚŚ ƚŚĞ Ă ŐŽĂů ŽĨ ĐƌĞĂƟŶŐ ŶĞǁ
ĨŽƌŵĂŶLJďƵƐŝŶĞƐƐĞƐ
ŽƉƉŽƌƚƵŶŝƟĞƐ͘/ƚĐĂŶƚĂŬĞƉůĂĐĞĂŶLJǁŚĞƌĞ͖ƐƵĐŚĂƐŝŶLJŽƵƌŽǁŶĐŽŵŵƵŶŝƚLJǁŝƚŚƉĞŽƉůĞLJŽƵŝŶƚĞƌĂĐƚǁŝƚŚ
ŝŶŵLJĐŽŵŵƵŶŝƚLJ͘tĞ
ŽŶĂĚĂLJͲƚŽͲĚĂLJďĂƐŝƐ͕ĂƚƚƌĂĚĞƐŚŽǁƐŽƌǁŝƚŚƉĞŽƉůĞǁŚŽĂƌĞŝŶǀŽůǀĞĚŝŶLJŽƵƌďƵƐŝŶĞƐƐůŝŬĞĐƵƐƚŽŵĞƌƐ͕
ĂƌƌĂŶŐĞĚƚŚĂƚWŚŝůŝƉ
ĨƌŝĞŶĚƐŽĨĐƵƐƚŽŵĞƌƐĂŶĚƉĞŽƉůĞƚŽǁŚŽŵLJŽƵƌĞŵƉůŽLJĞĞƐĂƌĞĐŽŶŶĞĐƚĞĚ͘ŽŶ͛ƚŝŐŶŽƌĞĂƐĞĞŵŝŶŐůLJ
ǁŽƵůĚƐƵƉƉůLJƚŚĞdƌĂƐŚ
ƐŵĂůůĚŝƐĐƵƐƐŝŽŶͲŝƚĐŽƵůĚůĞĂĚƚŽĂŶĞǁĐƵƐƚŽŵĞƌ͊hƐĞĂŶLJŽƉƉŽƌƚƵŶŝƚLJŝŶĂŚŝŐŚůLJǀŝƐŝďůĞƉƵďůŝĐƐĞƫŶŐ
ZĞŵŽǀĂůďƵƐŝŶĞƐƐǁŝƚŚ
ƚŽƚĂůŬĂďŽƵƚLJŽƵƌďƵƐŝŶĞƐƐƚŽĂŶLJŽŶĞǁŚŽŵŝŐŚƚďĞŝŶƚĞƌĞƐƚĞĚ͘ǀĞƌLJĞdžƉĞƌŝĞŶĐĞĐŽƵŶƚƐ͊
ĂƐŵĂůůĂŵŽƵŶƚŽĨƉĂƉĞƌ
ƚŽŚĞůƉƚŚĞŵƉƌŝŶƚƚŚĞŝƌ
Engage with your community.  ŐƌĞĂƚ͕ ĐŽƐƚͲĞīĞĐƟǀĞ ŵĂƌŬĞƟŶŐ ŵĞƚŚŽĚ ŝƐ ƚŽ ƉĂƌƟĐŝƉĂƚĞ ŝŶ ĞǀĞŶƚƐ
ĮƌƐƚƌŽƵŶĚŽĨŵĂƌŬĞƟŶŐ
ĂŶĚ ĂĐƟǀŝƟĞƐ ŝŶ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͘ ^ƉŽƌƟŶŐ ĞǀĞŶƚƐ͕ ƐĞĂƐŽŶĂů ĨĞƐƟǀĂůƐ͕ ĂŶĚ ŚŽůŝĚĂLJ ĂĐƟǀŝƟĞƐ ĂƌĞ ŐƌĞĂƚ
ŵĂƚĞƌŝĂůƐ͘/ŶƌĞƚƵƌŶ͕ǁĞ
ĞdžĂŵƉůĞƐŽĨůŽǁͲĐŽƐƚŵĂƌŬĞƟŶŐŽƉƉŽƌƚƵŶŝƟĞƐ͘EĞƚǁŽƌŬŝŶŐĂƚƚŚĞƐĞĞǀĞŶƚƐĂůůŽǁƐĨŽƌĚŝƌĞĐƚĐŽŶƚĂĐƚĂŶĚ
ĂƌƌĂŶŐĞĚĨŽƌŚŝŵƚŽŚĂǀĞ
ĐŽŵŵƵŶŝĐĂƟŽŶǁŝƚŚLJŽƵƌƚĂƌŐĞƚ͘zŽƵǁĂŶƚƚŽůŽŽŬŽƵƚĨŽƌŽĐĐĂƐŝŽŶƐĂŶĚĞǀĞŶƚƐǁŚĞƌĞLJŽƵƌƚĂƌŐĞƚŐƌŽƵƉ
ĂĨĞǁŵŽŶƚŚƐŽĨĨƌĞĞƚƌĂƐŚ
ŐĂƚŚĞƌƐŝŶůĂƌŐĞŶƵŵďĞƌƐ͕ƐŽĂƐƚŽĂĐŚŝĞǀĞLJŽƵƌŐƌĞĂƚĞƐƚƌĞĂĐŚ͘^ĞƚƵƉĂƚŚ͕ƚĂďůĞŽƌĐĂƌƚ;ĂŶLJƚLJƉĞ
ƌĞŵŽǀĂůƐĞƌǀŝĐĞƐ͘
ŽĨŵŽďŝůĞĚŝƐƉůĂLJͿƚŽƐŚŽǁĐĂƐĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂŶĚŚĂǀĞƐŽŵĞƉƌŝŶƚĞĚŵĂƚĞƌŝĂůƐĂǀĂŝůĂďůĞĨŽƌ
ĐƵƐƚŽŵĞƌƐƚŽƚĂŬĞǁŝƚŚƚŚĞŵƐŽƚŚĂƚƚŚĞLJĐĂŶĐŽŵĞďĂĐŬƚŽLJŽƵƌƌĞŐƵůĂƌƉůĂĐĞŽĨďƵƐŝŶĞƐƐĂƚĂůĂƚĞƌĚĂƚĞ͘
/ĨLJŽƵĚŽŶ͛ƚŚĂǀĞƚŚĞĂďŝůŝƚLJƚŽƐĞƚƵƉĂƐƚĂƟŽŶ͕ƵƐĞLJŽƵƌƚĞĂŵƚŽŚĂŶĚŽƵƚƉƌŝŶƚĞĚŵĂƚĞƌŝĂů͕ŐŝǀĞŽƵƚĨƌĞĞ
ƐĂŵƉůĞƐ͕ĂŶĚŚĂǀĞĨĂĐĞƚŽĨĂĐĞĐŽŶǀĞƌƐĂƟŽŶƐǁŝƚŚƉŽƚĞŶƟĂůĐƵƐƚŽŵĞƌƐ͘dŚĞĂǁĂƌĞŶĞƐƐŽĨLJŽƵƌďƌĂŶĚŽƌ
ƉƌŽĚƵĐƚǁŝůůŝŶĐƌĞĂƐĞĚƌĂŵĂƟĐĂůůLJǁŝƚŚĞĂĐŚŝŶƚĞƌĂĐƟŽŶLJŽƵŚĂǀĞǁŝƚŚLJŽƵƌƚĂƌŐĞƚ͘
dŚĂƚ͛ƐĂŐƌĞĂƚǁĂLJƚŽ
ƐĂǀĞŵŽŶĞLJĂŶĚŚĞůƉ
Do something unexpected. hƐŝŶŐ ŶŽŶͲƚƌĂĚŝƟŽŶĂů͕ ƵŶĐŽŶǀĞŶƟŽŶĂů ŵĞƚŚŽĚ ŽĨ ŵĂƌŬĞƟŶŐ ƚŚĂƚ ŝƐ
ŽƚŚĞƌďƵƐŝŶĞƐƐĞƐŝŶŽƵƌ
ĐĂƉƟǀĂƟŶŐ ĂŶĚ ŐĂŝŶƐ LJŽƵƌ ĐƵƐƚŽŵĞƌ͛Ɛ ĂƩĞŶƟŽŶ͕ ǁŚŝůĞ ĂůƐŽ ďƵŝůĚŝŶŐ ĂǁĂƌĞŶĞƐƐ ŽĨ LJŽƵƌ ďƵƐŝŶĞƐƐ Žƌ
ĐŽŵŵƵŶŝƚLJ͘tĞĐŽƵůĚĂůƐŽ
ďƌĂŶĚĐĂŶďĞĂŐƌĞĂƚǁĂLJƚŽŐĞƚLJŽƵƌďƵƐŝŶĞƐƐŬŶŽǁŶŝŶƚŚĞĐŽŵŵƵŶŝƚLJ͘DŽƐƚŽŌĞŶ͕ƚŚĞƐĞŵĞƚŚŽĚƐĂƌĞ
ƚĞůůƚŚĞĐŽƐƚƵŵĞƌƐĂďŽƵƚ
ĞdžĐĞƉƟŽŶĂůůLJĐƌĞĂƟǀĞĂŶĚƌĞƐŽƵƌĐĞĨƵůǁĂLJƐŽĨƐĞŶĚŝŶŐĂŵĞƐƐĂŐĞŽƌŐƌĂďďŝŶŐLJŽƵƌƚĂƌŐĞƚ͛ƐĂƩĞŶƟŽŶ͘
WƌŝŶƚdĞĐŚĂŶĚƚŚĞŝƌŐƌĞĂƚ
dŚĞ ŬĞLJ ŝŶŐƌĞĚŝĞŶƚƐ ĂƌĞ ƟŵĞ͕ ĞŶĞƌŐLJ ĂŶĚ ŝŵĂŐŝŶĂƟŽŶ ʹ ƌĂƚŚĞƌ ƚŚĂŶ ůĂƌŐĞ ďƵĚŐĞƚƐ Žƌ ĞdžĐĞƐƐŝǀĞ ƵƐĞ
ƐĞƌǀŝĐĞƐ͘dŚĂƚ͛ƐǁŽƌĚŽĨ
ŽĨ ƌĞƐŽƵƌĐĞƐ͘ ƐƐĞŶƟĂůůLJ͕ ƚŚĞ ŐŽĂů ŽĨ ŝƐ ƚŽ ŐĞŶĞƌĂƚĞ Ă ďƵnjnj ĂďŽƵƚ LJŽƵƌ ďƵƐŝŶĞƐƐ Žƌ ďƌĂŶĚ͕ ǁŚŝĐŚ ǁŝůů
ŵŽƵƚŚŝŶĂĐƟŽŶ͊
ƚŚĞŶďĞĐŽŵĞǁŝĚĞůLJŬŶŽǁŶ͘dLJƉŝĐĂůůLJ͕ƚŚŝƐŵĞƚŚŽĚŽĨƉƌŽŵŽƟŽŶŝƐƐƉŽŶƚĂŶĞŽƵƐĂŶĚŽŌĞŶŝŶƚĞƌĂĐƟǀĞ͘
WĞŽƉůĞǁŝůůďĞĐŽŵĞǀĞƌLJŝŶǀŽůǀĞĚŝŶƚŚĞƌĂŶĚŽŵĂĐƟǀŝƚLJŽƌĞǀĞŶƚƚŚĂƚŚĂƉƉĞŶƐ͕ĂŶĚǁŝůůƚŚĞŶƐƉƌĞĂĚƚŚĞ
ǁŽƌĚĂďŽƵƚƚŚĞĞǀĞŶƚƚŽĞǀĞƌLJŽŶĞǁŝƚŚǁŚŽŵƚŚĞLJĐŽŵŵƵŶŝĐĂƚĞ͘tŚĞŶĐŽŶƐŝĚĞƌŝŶŐƚŚĞƐĞŵĂƌŬĞƟŶŐ
ƚĂĐƟĐƐ͕ LJŽƵ ƐŚŽƵůĚ ďĞ ĐĂƌĞĨƵů ƚŽ ƌĞƚĂŝŶ LJŽƵƌ ŽƌŝŐŝŶĂů ŝŵĂŐĞ ĂŶĚ ŶŽƚ ƉƵƚ LJŽƵƌƐĞůĨ͕ LJŽƵƌ ƚĞĂŵ͕ Žƌ ĂŶLJ
ƉŽƚĞŶƟĂůĂƵĚŝĞŶĐĞŵĞŵďĞƌƐŝŶĂĚĂŶŐĞƌŽƵƐŽƌĐŽŵƉƌŽŵŝƐŝŶŐƉŽƐŝƟŽŶ͘dŚĞĂĐƟǀŝƚLJƐŚŽƵůĚďĞĨƵŶĂŶĚ
ĞŶƚĞƌƚĂŝŶŝŶŐ͕ǁŚŝůĞĂůƐŽĞĚƵĐĂƟŽŶĂůĂŶĚŝŶĨŽƌŵĂƟŽŶĂůʹůĞĂĚŝŶŐĐƵƐƚŽŵĞƌƐƚŽǁĂŶƚƚŽŬŶŽǁŵŽƌĞĂďŽƵƚ
LJŽƵ ĂŶĚ LJŽƵƌ ďƵƐŝŶĞƐƐ͘ ^ƚƌĞĞƚ ĐĂŵƉĂŝŐŶƐ ĂŶĚ ĚĞŵŽŶƐƚƌĂƟŽŶƐ ŝŶ ƉƵďůŝĐ ǀĞŶƵĞƐ ĂƌĞ ĞdžĂŵƉůĞƐ ŽĨ ƚŚŝƐ
ƉƌŽŵŽƟŽŶŵĞƚŚŽĚ͘

Premium or Referral Program. ƵƐƚŽŵĞƌƌĞĨĞƌƌĂůƉƌŽŐƌĂŵƐĂŶĚĚŝƐĐŽƵŶƚƐǁŽƌŬďLJƌĞǁĂƌĚŝŶŐĐƵƌƌĞŶƚ

ĐƵƐƚŽŵĞƌƐĨŽƌďƌŝŶŐŝŶŐŝŶƐŽŵĞŽĨƚŚĞŝƌŽǁŶĨƌŝĞŶĚƐĂŶĚĐŽŶƚĂĐƚƐƚŽLJŽƵĂƐŶĞǁĐƵƐƚŽŵĞƌƐ͘zŽƵĐĂŶŽīĞƌ
ƌĞǁĂƌĚƐƚŽƚŚĞŽůĚĐƵƐƚŽŵĞƌƐůŝŬĞĚŝƐĐŽƵŶƚƐŽŶĨƵƚƵƌĞƉƵƌĐŚĂƐĞƐ͕ŽƌƐƉĞĐŝĂůƐǁŚĞŶƚŚĞLJŵĂŬĞĂƉƵƌĐŚĂƐĞ
ǁŝƚŚĂĨƌŝĞŶĚŽƌŽƚŚĞƌŶĞǁĐůŝĞŶƚ;ďƵLJŽŶĞ͕ŐĞƚƚŚĞƐĞĐŽŶĚĂƚŚĂůĨƉƌŝĐĞ͕ĞƚĐͿ͘ŶŽƚŚĞƌĞdžĂŵƉůĞǁŽƵůĚďĞ
ƌĞǁĂƌĚŝŶŐĂƌĞƉĞĂƚĐƵƐƚŽŵĞƌďLJŐŝǀŝŶŐƚŚĞŵĂĚŝƐĐŽƵŶƚĨŽƌĞǀĞƌLJƚŚŝƌĚƉƵƌĐŚĂƐĞƚŚĞLJŵĂŬĞ͘dŚĞŵĞƐƐĂŐĞ
LJŽƵƐĞŶĚǁŝƚŚLJŽƵƌƌĞǁĂƌĚƉƌŽŐƌĂŵƐŚŽƵůĚƌĞŵĂŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚLJŽƵƌďƌĂŶĚʹŐŝǀŝŶŐƚŽŽŵƵĐŚĂǁĂLJ
ĐŽƵůĚĂīĞĐƚƚŚĞƉĞƌĐĞƉƟŽŶŽĨƋƵĂůŝƚLJĂŶĚŝƚĐŽƵůĚƐĞƚĂŶƵŶƌĞĂƐŽŶĂďůĞĞdžƉĞĐƚĂƟŽŶĨŽƌůŽǁĞƌƉƌŝĐĞƐŝŶ
ƚŚĞŵŝŶĚŽĨLJŽƵƌĐƵƐƚŽŵĞƌƐ͘

EĞǁƐƉĂƉĞƌƐ͕DĂŐĂnjŝŶĞƐΘŽŵŵƵŶŝƚLJWƵďůŝĐĂƟŽŶƐ͘ŽLJŽƵƌĞĂĚƚŚĞŶĞǁƐƉĂƉĞƌƌĞŐƵůĂƌůLJ͍ĂŶLJŽƵ
ƚŚŝŶŬ ŽĨ Ă ǁĞůůͲŬŶŽǁŶ ƉŽƉƵůĂƌ ƉƵďůŝĐĂƟŽŶ ŝŶ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͍ ŚĂŶĐĞƐ ĂƌĞ ƚŚĂƚ ƚŚĞƐĞ ƉƵďůŝĐĂƟŽŶƐ
ƐĞůůƐƉĂĐĞŝŶƚŚĞŝƌŝƐƐƵĞƐƚŽĐŽŵƉĂŶŝĞƐĂŶĚďƌĂŶĚƐǁŚŽǁĂŶƚƚŽĂĚǀĞƌƟƐĞƚŚĞŝƌƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐ͘
ĞƚĞƌŵŝŶĞŝĨLJŽƵƌƚĂƌŐĞƚŵĂƌŬĞƚƌĞĂĚƐƚŚĞƐĞƉƵďůŝĐĂƟŽŶƐďĞĨŽƌĞŵŽǀŝŶŐĨŽƌǁĂƌĚǁŝƚŚƚŚŝƐŵĞƚŚŽĚ͘WƌŝŶƚ
ĂĚƐŵĂLJďĞĂŐƌĞĂƚǁĂLJƚŽŵĂƌŬĞƚLJŽƵƌƉƌŽĚƵĐƚƚŽĂůĂƌŐĞƌĂƵĚŝĞŶĐĞ͘zŽƵŵƵƐƚǀĞƌLJĐĂƌĞĨƵůůLJĂŶĂůLJnjĞƚŚĞ
ĐŽƐƚŽĨĂĚǀĞƌƟƐŝŶŐ͕ĂƐŶŽƚĂůůĨŽƌŵƐĂƌĞŝŶĞdžƉĞŶƐŝǀĞ͘ƵƚǁŝƚŚĐƌĞĂƟǀŝƚLJ͕LJŽƵŵĂLJďĞĂďůĞƚŽĮŶĚĐŽƐƚͲ
ĞīĞĐƟǀĞǁĂLJƐƚŽĂĚǀĞƌƟƐĞ͘

ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 115

 tŚĂƚŵĞƚŚŽĚƐLJŽƵĐŚŽŽƐĞĨŽƌƉƌŽŵŽƟŽŶĞŶƟƌĞůLJĚĞƉĞŶĚŽŶLJŽƵƌƐƉĞĐŝĮĐďƵƐŝŶĞƐƐĂŶĚŝƚƐďƌĂŶĚŝĚĞŶƟƚLJ͘
'ƌĂĐĞĂŶĚ^ĂŵĂƌĞƚƌLJŝŶŐƚŽŚĞůƉDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚĚĞǀĞůŽƉƚŚĞŝƌƉůĂŶĨŽƌƉƌŽŵŽƟŽŶ͘^ŽŵĞ
ŵĂƌŬĞƟŶŐŵĞƚŚŽĚƐƚŚĂƚ'ƌĂĐĞŝƐŝŶƚĞƌĞƐƚĞĚŝŶĂĚŽƉƟŶŐĂƌĞĂĚǀĞƌƟƐŝŶŐƚŚƌŽƵŐŚƌĂĚŝŽĐŽŵŵĞƌĐŝĂůƐ͕ĂŶĚ
ƉƵƫŶŐĂĚƐŝŶƉƌŝŶƚĞĚŶĞǁƐƉĂƉĞƌƐ͘'ƌĂĐĞďĞůŝĞǀĞƐƚŚĂƚďĞŝŶŐĂŶĞǁďƵƐŝŶĞƐƐ͕ƚŚĞŝŶŝƟĂůŵĂƌŬĞƟŶŐŐŽĂů
ĨŽƌƚŚĞdƌĂƐŚZĞŵŽǀĂůďƵƐŝŶĞƐƐƐŚŽƵůĚďĞƚŽƌĞĂĐŚĂŶĚŝŶĨŽƌŵĂůĂƌŐĞŶƵŵďĞƌŽĨƚĂƌŐĞƚĐƵƐƚŽŵĞƌƐĂďŽƵƚ
ƚŚĞďƵƐŝŶĞƐƐĂƚŽŶĞƟŵĞ͘'ƌĂĐĞƵŶĚĞƌƐƚĂŶĚƐƚŚĂƚŵĞƚŚŽĚƐƐƵĐŚĂƐƌĂĚŝŽĂŶĚŶĞǁƐƉĂƉĞƌĂĚǀĞƌƟƐĞŵĞŶƚƐ
ĐĂŶďĞĞdžƉĞŶƐŝǀĞ͕ĂŶĚĂƌĞŽŶĞͲƟŵĞŵĞƚŚŽĚƐŽĨƌĞĂĐŚŝŶŐƚŚĞĐƵƐƚŽŵĞƌƐ͘,ŽǁĞǀĞƌ͕ĂƚƚŚĞƐĞďĞŐŝŶŶŝŶŐ
ƐƚĂŐĞƐ͕'ƌĂĐĞďĞůŝĞǀĞƐƚŚĂƚƚŚŝƐŝŶǀĞƐƚŵĞŶƚǁŝůůďĞǁŽƌƚŚƚŚĞŵŽŶĞLJ͕ƐŝŶĐĞŝƚǁŝůůĂůůŽǁƚŚĞďƵƐŝŶĞƐƐƚŽ
ŐĞŶĞƌĂƚĞ ĂǁĂƌĞŶĞƐƐ ĂŶĚ ĐƌĞĂƚĞ Ă ďƵnjnj͘ ^ĂŵƵĞů͕ ŽŶ ƚŚĞ ŽƚŚĞƌ ŚĂŶĚ͕ ĚŽĞƐ ŶŽƚ ďĞůŝĞǀĞ ƚŚĂƚ ĞdžƉĞŶƐŝǀĞ
ŵĂƌŬĞƟŶŐŵĞƚŚŽĚƐƐƵĐŚĂƐƌĂĚŝŽĂŶĚŶĞǁƐƉĂƉĞƌĂĚǀĞƌƟƐĞŵĞŶƚƐĂƌĞŶĞĐĞƐƐĂƌLJƚŽŐĞŶĞƌĂƚĞĂǁĂƌĞŶĞƐƐ
ĂďŽƵƚDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚ͘^ĂŵƵĞůĨĞĞůƐƚŚĂƚĂƚƚŚĞƐĞŝŶŝƟĂůƐƚĂŐĞƐ͕ƚŚĞďƵƐŝŶĞƐƐƐŚŽƵůĚĨŽĐƵƐ
ŽŶ ƐĂǀŝŶŐ ŵŽŶĞLJ ĨŽƌ ĚĂLJͲƚŽͲĚĂLJ ĞdžƉĞŶƐĞƐ ĂƐ ǁĞůů ĂƐ ĨŽƌ ĂŶLJ ƵŶĨŽƌĞƐĞĞŶ Žƌ ƵŶĂŶƟĐŝƉĂƚĞĚ ĐŽƐƚƐ ƚŚĂƚ
ŵŝŐŚƚĐŽŵĞƵƉĂƐƚŚĞďƵƐŝŶĞƐƐŽƉĞŶƐ͘^ĂŵƵĞůƚŚŝŶŬƐůŽǁĞƌĐŽƐƚŵĞƚŚŽĚƐǁŝůůďĞŵŽƌĞĞīĞĐƟǀĞƐƵĐŚĂƐ
ĐƌĞĂƟŶŐďƌŽĐŚƵƌĞƐĂŶĚŇŝĞƌƐƚŽƉƵƚƵƉĂƌŽƵŶĚƚŚĞĐŽŵŵƵŶŝƚLJǁŚĞƌĞƚŚĞƚĂƌŐĞƚĐƵƐƚŽŵĞƌƐǁŝůůƐĞĞƚŚĞŵ͘
^ĂŵƵĞůĂůƐŽďĞůŝĞǀĞƐƚŚĂƚůĞǀĞƌĂŐŝŶŐĨƌŝĞŶĚƐ͕ĨĂŵŝůLJŵĞŵďĞƌƐ͕ĂŶĚŽƚŚĞƌŵĞŵďĞƌƐŽĨƚŚĞĐŽŵŵƵŶŝƚLJ
ƚŽƉƌŽŵŽƚĞŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƚŚĞƐĞƌǀŝĐĞƚŚƌŽƵŐŚǁŽƌĚŽĨŵŽƵƚŚ͕ǁŽƵůĚďĞĂŐŽŽĚǁĂLJŽĨĐƌĞĂƟŶŐ
ďƵnjnjĂŶĚĂǁĂƌĞŶĞƐƐŽĨƚŚĞďƵƐŝŶĞƐƐ͘/ĨŶĞĐĞƐƐĂƌLJ͕ƉĞŽƉůĞǁŚŽĚŽĂŐƌĞĂƚũŽďŽĨƵƐŝŶŐǁŽƌĚŽĨŵŽƵƚŚ
ƚŽƉƌŽŵŽƚĞƚŚĞƐĞƌǀŝĐĞŵŝŐŚƚĂůƐŽ ŐĞƚƐŽŵĞĐŽƵƉŽŶƐ ŽƌĚŝƐĐŽƵŶƚƐ͘^ĂŵƵĞů ĨĞĞůƐƚŚĂƚƚŚĞƐĞŵĞƚŚŽĚƐ
ǁŽƵůĚŶŽƚŽŶůLJďĞĐŽƐƚͲĞīĞĐƟǀĞ͕ďƵƚǁŝůůŐĞŶĞƌĂƚĞƌĞƉĞĂƚĞĚĂǁĂƌĞŶĞƐƐĂŶĚǁŝůůŶŽƚũƵƐƚďĞŽŶĞͲƟŵĞ
ĂŶŶŽƵŶĐĞŵĞŶƚƐ͘

Exercise 7.8: Free Ways to Promote

ĂŶLJŽƵƚŚŝŶŬŽĨƐƉĞĐŝĮĐĞǀĞŶƚƐŽƌŽƌŐĂŶŝnjĞĚĂĐƟǀŝƟĞƐǁŚĞƌĞLJŽƵŵŝŐŚƚŚĂǀĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJ
ƚŽƉĂƌƟĐŝƉĂƚĞĂŶĚƉƌŽŵŽƚĞLJŽƵƌďƵƐŝŶĞƐƐĨŽƌĨƌĞĞ͍ĞůŽǁ͕ĚĞƐĐƌŝďĞƚǁŽĞǀĞŶƚƐŽƌŽĐĐĂƐŝŽŶƐĂŶĚ
ŚŽǁLJŽƵŵŝŐŚƚŵĂƌŬĞƚLJŽƵƌďƵƐŝŶĞƐƐ͗

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tŚĂƚ ŬŝŶĚ ŽĨ ƵŶĐŽŶǀĞŶƟŽŶĂů ŵĞƚŚŽĚƐ ĐŽƵůĚ LJŽƵ ƵƐĞ ƚŽ ƉƌŽŵŽƚĞ LJŽƵƌ ďƵƐŝŶĞƐƐ͍ ĞƐĐƌŝďĞ Ă
ƐŝƚƵĂƟŽŶƚŚĂƚŵŝŐŚƚĐĂƉƚƵƌĞLJŽƵƌƚĂƌŐĞƚ͛ƐĂƩĞŶƟŽŶŝŶĂƐƉŽŶƚĂŶĞŽƵƐǁĂLJƚŚĂƚǁŝůůŚĂǀĞƚŚĞŵ
ǁĂŶƟŶŐƚŽŬŶŽǁŵŽƌĞ͘tŚĞƌĞĂŶĚǁŚĞŶǁŽƵůĚƚŚŝƐĞǀĞŶƚŚĂƉƉĞŶ͍tŚĂƚŵĂƚĞƌŝĂůƐŽƌƌĞƐŽƵƌĐĞƐ
ŵŝŐŚƚLJŽƵƌĞƋƵŝƌĞƚŽĂĐĐŽŵƉůŝƐŚLJŽƵƌŵĞƚŚŽĚ͍tŝůůLJŽƵŶĞĞĚĂƚĞĂŵƚŽŚĞůƉLJŽƵĂĐĐŽŵƉůŝƐŚƚŚŝƐ
ĞīŽƌƚ͍ĞƐĐƌŝďĞďĞůŽǁ͘

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116 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ

 Exercise 7.9: >ŽĐĂůĚǀĞƌƟƐŝŶŐ
ŽůůĞĐƚĂĨĞǁƉƌŝŶƚĞĚƉƵďůŝĐĂƟŽŶƐĨƌŽŵLJŽƵƌŶĞŝŐŚďŽƌŚŽŽĚĂŶĚĮŶĚŽƵƚǁŚŽƚŚĞƉƵďůŝƐŚĞƌŽƌ
ĞĚŝƚŽƌŝƐ͘/ŶƋƵŝƌĞǁŝƚŚƚŚĂƚƉĞƌƐŽŶĂďŽƵƚƚŚĞŝƌĂĚǀĞƌƟƐŝŶŐƌĂƚĞ͘zŽƵƐŚŽƵůĚŐĂƚŚĞƌŝŶĨŽƌŵĂƟŽŶ
ĨƌŽŵƚǁŽŽƌƚŚƌĞĞƉƵďůŝĐĂƟŽŶƐƚŚĂƚƚĞůůLJŽƵŚŽǁŵƵĐŚŝƚǁŽƵůĚĐŽƐƚƉĞƌƐŝnjĞŽĨĂĚĂŶĚŶƵŵďĞƌ
ŽĨƟŵĞƐŝƚŝƐƉƵďůŝƐŚĞĚ͘/ƚŵŝŐŚƚďĞǁŽƌƚŚĐŽŵƉĂƌŝŶŐƚŚĞƉƌŝĐĞŽĨLJŽƵƌůŽĐĂůŶĞǁƐƉĂƉĞƌ͕ƚŽƉƌŝĐĞƐ
ŽĨŽƚŚĞƌŶĞǁƐƉĂƉĞƌƐŶĞĂƌƚŚĞĂƌĞĂǁŚŝĐŚŵŝŐŚƚĂůůŽǁĨŽƌŶĞŐŽƟĂƟŶŐŽƌŐĞƫŶŐĂďĞƩĞƌƉƌŝĐĞ͘

ĂƐĞĚŽŶLJŽƵƌŽǁŶĐŽƐƚĞƐƟŵĂƚĞƐ͕ĐĂŶLJŽƵĂīŽƌĚĂŶLJŽĨƚŚĞƐĞĂĚƐƉĂĐĞƐŝŶLJŽƵƌŵĂƌŬĞƟŶŐƉůĂŶ͍

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ŽĞƐ LJŽƵƌ ĐŚƵƌĐŚ Žƌ ĐŽŵŵƵŶŝƚLJ ĐĞŶƚĞƌ ƉƵďůŝƐŚ Ă ǁĞĞŬůLJ ŶĞǁƐůĞƩĞƌ Žƌ ŽƚŚĞƌ ŝŶĨŽƌŵĂƟŽŶĂů
ĚŽĐƵŵĞŶƚ͍&ŝŶĚŽƵƚŝĨƚŚĞLJŽīĞƌĨƌĞĞŽƌǀĞƌLJůŽǁĐŽƐƚƐƉĂĐĞĨŽƌƐŵĂůůďƵƐŝŶĞƐƐĞƐƚŽĂĚǀĞƌƟƐĞ͘

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tŚŽƌĞĂĚƐƚŚĞƐĞƉƵďůŝĐĂƟŽŶƐ͍ŽĞƐŝƚŵĂŬĞƐĞŶƐĞĨŽƌLJŽƵƚŽĂĚǀĞƌƟƐĞƚŚŝƐǁĂLJďĂƐĞĚŽŶLJŽƵƌ
ƚĂƌŐĞƚŵĂƌŬĞƚ͍

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Exercise 7.10: zŽƵƌWƌŽŵŽƟŽŶ^ƚƌĂƚĞŐLJ

EŽǁƚŚĂƚLJŽƵŚĂǀĞƚŚŽƵŐŚƚĂďŽƵƚĚŝīĞƌĞŶƚŽƉƟŽŶƐĨŽƌƉƌŽŵŽƟŽŶ͕ŝƚŝƐƟŵĞƚŽŵĂŬĞĚĞĐŝƐŝŽŶƐ
ĂďŽƵƚLJŽƵƌƉƌŽŵŽƟŽŶƐƚƌĂƚĞŐLJ͘tŚĞŶLJŽƵĮƌƐƚƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐ͕ŚŽǁĚŽLJŽƵƉůĂŶƚŽƉƌŽŵŽƚĞ
LJŽƵƌ ďƌĂŶĚ ĂŶĚ ĂƩƌĂĐƚ ƚŚŽƐĞ ĮƌƐƚ ĐƵƐƚŽŵĞƌƐ͍ ,Žǁ ŵƵĐŚ ǁŝůů ƚŚĞ ĚŝīĞƌĞŶƚ ĞůĞŵĞŶƚƐ ŽĨ LJŽƵƌ
ƉƌŽŵŽƟŽŶƉůĂŶĐŽƐƚ͍

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_______________________________________ Exercise 7.10͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
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LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
_______________________________________ DĂƌŬĞƟŶŐ͗
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dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌ
_______________________________________ ƉƌŽŵŽƟŽŶƐƚƌĂƚĞŐLJ͘Ğ
ƐƵƌĞƚŽŝŶĐůƵĚĞŝŶĨŽƌŵĂƟŽŶ
_______________________________________ ĂďŽƵƚLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJ
ĂƐǁĞůůĂƐŝŶĨŽƌŵĂƟŽŶ
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ǁŝƚŚLJŽƵƌƉůĂŶƐ͘

ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 117

 Lesson 7.4: Place
tŚĞƌĞǁŝůůLJŽƵƌƉƌŽĚƵĐƚďĞƐŽůĚ͍tŚĞƌĞǁŝůůŝƚďĞŵĂĚĞ͍/ƐƚŚŝƐƚŚĞƐĂŵĞƉůĂĐĞ͍ƵƐƚŽŵĞƌƐŵŝŐŚƚŶŽƚ
ĂĐƟǀĞůLJďĞƐĞĞŬŝŶŐLJŽƵƌƉƌŽĚƵĐƚĂƚĮƌƐƚ͕ƐŽLJŽƵƐŚŽƵůĚĐŚŽŽƐĞĂŚŝŐŚůLJǀŝƐŝďůĞůŽĐĂƟŽŶǁŚĞŶLJŽƵĮƌƐƚ
ŝŶƚƌŽĚƵĐĞLJŽƵƌƉƌŽĚƵĐƚ͘/ĨŝƚŝƐƐƵĐĐĞƐƐĨƵů͕LJŽƵŵŝŐŚƚĐŚŽŽƐĞƚŽƌĞŵĂŝŶŝŶƚŚĂƚůŽĐĂƟŽŶ͘zŽƵŵƵƐƚĂůǁĂLJƐ
ƌĞĨĞƌďĂĐŬƚŽǁŚĂƚLJŽƵŬŶŽǁĂďŽƵƚLJŽƵƌĐƵƐƚŽŵĞƌƐƚŽŵĂŬĞĚĞĐŝƐŝŽŶƐƐƵĐŚĂƐƚŚĞƉůĂĐĞŵĞŶƚŽĨLJŽƵƌ
ƉƌŽĚƵĐƚ͘<ŶŽǁŝŶŐǁŚŽLJŽƵƌĐƵƐƚŽŵĞƌƐĂƌĞĂŶĚǁŚĞƌĞƚŚĞLJƐƉĞŶĚƚŚĞŝƌƟŵĞƐŚŽƵůĚƉůĂLJĂůĂƌŐĞƌŽůĞŝŶ
ƚŚĞƐĞĚĞĐŝƐŝŽŶƐ͘

Exercise 7.11: Where to sell?

tŚĞƌĞǁŝůůLJŽƵƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂŶĚǁŚLJ͍/ĨLJŽƵĂƌĞƐĞůůŝŶŐĂƉƌŽĚƵĐƚ͕ŚŽǁĚŽĞƐƚŚŝƐ
ůŽĐĂƟŽŶƌĞůĂƚĞƚŽǁŚĞƌĞLJŽƵƌƉƌŽĚƵĐƚŝƐŵĂĚĞ͍

_______________________________________
_______________________________________
_______________________________________
Your Business Plan
_______________________________________
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Exercise 7.11͕ƚƵƌŶƚŽƚŚĞ _______________________________________
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ _______________________________________
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
_______________________________________
DĂƌŬĞƟŶŐ͗
WůĂĐĞ _______________________________________
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐƚŚĞ
ůŽĐĂƟŽŶĂƚǁŚŝĐŚLJŽƵǁŝůů _______________________________________
ƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘
ĞƐƵƌĞƚŽĞdžƉůĂŝŶǁŚLJLJŽƵ _______________________________________
ŚĂǀĞƉŝĐŬĞĚƚŚŝƐůŽĐĂƟŽŶĂƐ
ŝƚƌĞůĂƚĞƐƚŽǁŚĂƚLJŽƵŬŶŽǁ _______________________________________
ĂďŽƵƚƚĂƌŐĞƚĐƵƐƚŽŵĞƌ͘

Lesson 7.5: Price

WƌŝĐĞŝƐƚŚĞĐŽƐƚŽĨLJŽƵƌƉƌŽĚƵĐƚƚŽƚŚĞĐŽŶƐƵŵĞƌ͘WƌŝĐŝŶŐĚŝĐƚĂƚĞƐŚŽǁLJŽƵƌƉƌŽĚƵĐƚƉƌŝĐĞĐŽŵƉĂƌĞƐ
ƚŽ ƚŚĞ ƉƌŝĐĞƐ ŽĨ ĐŽŵƉĞƟƚŽƌƐ͛ ƉƌŽĚƵĐƚƐ͘ /Ĩ LJŽƵƌ ƉƌŝĐĞ ŝƐ ŵŽƌĞ ĞdžƉĞŶƐŝǀĞ͕ LJŽƵ ŵŝŐŚƚ ǁĂŶƚ ƚŽ ĨŽĐƵƐ ŽŶ
ŵĂƌŬĞƟŶŐƚŚĞďĞŶĞĮƚƐŽĨLJŽƵƌƉƌŽĚƵĐƚ͘/ŶĂĚĚŝƟŽŶ͕ĨŽƌƐƵĐŚƉƌŽĚƵĐƚƐLJŽƵŵŝŐŚƚŽīĞƌĂŶŝŶŝƟĂůĚŝƐĐŽƵŶƚ͕
ĐŽƵƉŽŶ͕ Žƌ ƐĂŵƉůĞ ƚŽ ŝŶŇƵĞŶĐĞ LJŽƵƌ ĐƵƐƚŽŵĞƌƐ͛ ďƵLJŝŶŐ ĚĞĐŝƐŝŽŶ͘ WƌŝĐĞ ƉƌŽŵŽƟŽŶƐ ƐŚŽƵůĚ ďĞ ƐŚŽƌƚ
ƚĞƌŵ͕ĨŽƌƐƉĞĐŝĮĐƉĞƌŝŽĚƐŽĨƟŵĞĂŶĚƐŚŽƵůĚĂĐŚŝĞǀĞƐƉĞĐŝĮĐŐŽĂůƐ;ƐƵĐŚĂƐĂƩƌĂĐƟŶŐŶĞǁĐƵƐƚŽŵĞƌƐŽƌ
ĞŶĐŽƵƌĂŐŝŶŐƚŚĞŵƚŽƚƌLJŶĞǁƉƌŽĚƵĐƚƐ͘Ϳ

WƌŽĮƚс^ĞůůŝŶŐWƌŝĐĞʹŽƐƚWƌŝĐĞ
^ĞůůŝŶŐƉƌŝĐĞсĐŽƐƚƉƌŝĐĞнĚĞƐŝƌĞĚƉƌŽĮƚ

tŚĞŶĞŶƚĞƌŝŶŐĂŵĂƌŬĞƚ͕ƚŚĞĨŽůůŽǁŝŶŐĂƌĞƐŽŵĞƉƌŝĐŝŶŐƐƚƌĂƚĞŐŝĞƐ͗

• Price Skimming:,ŝŐŚŝŶŝƟĂůƉƌŝĐĞĨŽƌŚŝŐŚĞƌŝŶŝƟĂůŵĂƌŐŝŶƐ͕ĂŶĚƚŚĞŶůŽǁĞƌƉƌŝĐĞƐŽǀĞƌƟŵĞ͘
ͻWĞŶĞƚƌĂƟŽŶWƌŝĐŝŶŐ͗>ŽǁƉƌŝĐĞĐŽŵƉĂƌĞĚƚŽĐŽŵƉĞƟƚŽƌƐŝŶŝƟĂůůLJ͘dŚŝƐŚĞůƉƐƚŽŐĂŝŶƋƵŝĐŬŵĂƌŬĞƚ
ƐŚĂƌĞďĞĨŽƌĞĐŽŵƉĞƟƚŽƌƐ͘,ĞƌĞ͕ƉƌŽŵŽƟŽŶĂůƐƚƌĂƚĞŐŝĞƐƚĞŶĚƚŽďĞŐƌĞĂƚĞƌ͘

118 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ

WƌŝĐŝŶŐ ŝƐ ŝŵƉŽƌƚĂŶƚ ďĞĐĂƵƐĞ ŝƚ ĚŝĐƚĂƚĞƐ ŚŽǁ ĐŽŶƐƵŵĞƌƐ ǁŝůů ƉĞƌĐĞŝǀĞ LJŽƵƌ ƉƌŽĚƵĐƚ͛Ɛ ƉŽƐŝƟŽŶ ŝŶ ƚŚĞ
ŵĂƌŬĞƚƉůĂĐĞ͘dŽƵŶĚĞƌƐƚĂŶĚŚŽǁƚŽƉƌŝĐĞLJŽƵƌƉƌŽĚƵĐƚLJŽƵŵƵƐƚƵŶĚĞƌƐƚĂŶĚƚŚƌĞĞƚŚŝŶŐƐ͗

• ,ŽǁŵƵĐŚŝƐƚŚĞŝƚĞŵĐŽƐƟŶŐLJŽƵƚŽƉƌŽĚƵĐĞŽƌƐĞƌǀĞ͍;zŽƵ͛ůůůĞĂƌŶŵŽƌĞĂďŽƵƚŚŽǁƚŽĂƐƐĞƐƐ
ƚŚŝƐŝŶŚĂƉƚĞƌϳΘϴͿzŽƵǁŽƵůĚŶ͛ƚǁĂŶƚƚŽƐĞůůLJŽƵƌƉƌŽĚƵĐƚĨŽƌůĞƐƐƚŚĂŶŝƚĐŽƐƚƐLJŽƵƚŽŵĂŬĞ
ŝƚ͘
• tŚĂƚǁŝůůLJŽƵƌƚĂƌŐĞƚƉĂLJĨŽƌƚŚŝƐƐĞƌǀŝĐĞŽƌƉƌŽĚƵĐƚ͍zŽƵƐŚŽƵůĚĐŽůůĞĐƚŝŶĨŽƌŵĂƟŽŶĨƌŽŵLJŽƵƌ
ĨĞĞĚďĂĐŬ͘
• tŚĂƚĂƌĞLJŽƵƌĐŽŵƉĞƟƚŽƌƐĐŚĂƌŐŝŶŐ͍/ƚ͛ƐŽŬĂLJƚŽŚĂǀĞ͕ĂŶĚLJŽƵƉƌŽďĂďůLJǁŝůůŚĂǀĞ͕ĂĚŝīĞƌĞŶƚ
ƉƌŝĐĞƐƚƌƵĐƚƵƌĞƚŚĂŶLJŽƵƌĐŽŵƉĞƟƚŽƌƐ͘zŽƵŵƵƐƚďĞĂďůĞƚŽĞdžƉůĂŝŶǁŚLJLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ
ŝƐŵŽƌĞĞdžƉĞŶƐŝǀĞ;ŝĨƚŚĂƚ͛ƐƚŚĞĐĂƐĞͿŽƌLJŽƵŝĨLJŽƵƌƉƌŝĐĞƐĂƌĞůŽǁĞƌ͕LJŽƵŵƵƐƚƵŶĚĞƌƐƚĂŶĚǁŚLJ
LJŽƵĂƌĞĂďůĞƚŽƉƌŝĐĞůŽǁĞƌƚŚĂŶƚŚĞŵ͘

ZĞŵĞŵďĞƌƚŚĂƚLJŽƵƌƉƌŝĐĞŝƐƐĞƚďĂƐĞĚŽŶƚŚĞŝŵƉŽƌƚĂŶƚĨĂĐƚŽƌƐĂďŽǀĞ͘^ŽŵĞƟŵĞƐ͕ĚĞƉĞŶĚŝŶŐŽŶLJŽƵƌ
ďƵƐŝŶĞƐƐ͕LJŽƵŵĂLJŚĂǀĞƚŽĞŶŐĂŐĞŝŶŶĞŐŽƟĂƟŽŶƐŽĨLJŽƵƌƉƌŝĐĞǁŚĞŶƐŽŵĞŽŶĞŝƐƚƌLJŝŶŐƚŽŐĞƚLJŽƵƚŽ Your Business Plan
ƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĨŽƌůĞƐƐŵŽŶĞLJ͘ZĞŵĞŵďĞƌƚŚĞĨĂĐƚŽƌƐƐƵĐŚĂƐĐŽƐƚ͕ĐŽŵƉĞƟƚŽƌƐĂŶĚƚĂƌŐĞƚ
ŵĂƌŬĞƚŝĨLJŽƵĐŽŶƐŝĚĞƌůŽǁĞƌŝŶŐLJŽƵƌƉƌŝĐĞŝŶƚŚŽƐĞƐŝƚƵĂƟŽŶƐ͘ůƐŽ͕ĂƐĚĞƐĐƌŝďĞĚĞĂƌůŝĞƌŝŶƚŚŝƐĐŚĂƉƚĞƌ͕ KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
ǁŽƌĚŽĨŵŽƵƚŚŝƐĂƉŽǁĞƌĨƵůƚŽŽů͘dŚŝƐŵĞĂŶƐƚŚĂƚŝĨƐŽŵĞŽŶĞƐŚĂƌĞƐƚŚĂƚLJŽƵůŽǁĞƌĞĚLJŽƵƌƉƌŝĐĞĨŽƌ Exercise 7.12͕ƚƵƌŶƚŽƚŚĞ
ƚŚĞŵ͕ŶĞǁƐŽĨƚŚĂƚǁŝůůƚƌĂǀĞůĂŶĚŽƚŚĞƌĐƵƐƚŽŵĞƌƐǁŝůůĞdžƉĞĐƚƚŚĞŶĞǁůŽǁĞƌƉƌŝĐĞ͘ĞĐĂƌĞĨƵůŝŶLJŽƵƌ ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ŶĞŐŽƟĂƟŽŶ͊ ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗

DĂƌŬĞƟŶŐ͗
Exercise 7.12: At What Price? Price
dŚŝƐƐĞĐƟŽŶŝĚĞŶƟĮĞƐƚŚĞ
dŚŝŶŬŝŶŐĂďŽƵƚƚŚĞĐŽŵƉĞƟƟŽŶ͕LJŽƵƌŐŽĂůƐĂŶĚĐŽƐƚƐ͕ǁŚĂƚǁŝůůLJŽƵƌďĂƐĞƉƌŝĐĞďĞ͍ ƉƌŝĐĞĂƚǁŚŝĐŚLJŽƵǁŝůůƐĞůů
LJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘
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KƵƌĨƌŝĞŶĚƐĚĞĐŝĚĞĚƚŚĂƚƚŚĞLJ
ǁŽƵůĚŚĂǀĞĂƉƌŝĐĞĨŽƌĂŽŶĞ
tŝůůLJŽƵŽīĞƌĂŶLJƐƉĞĐŝĂůŝŶƚƌŽĚƵĐƚŽƌLJĚŝƐĐŽƵŶƚƐ͍tŚĂƚŝƐƚŚĞŽīĞƌĂŶĚƟŵĞĨƌĂŵĞ͍ ƟŵĞƉŝĐŬƵƉĂŶĚĂŶŽƚŚĞƌƉƌŝĐĞ
ĨŽƌĐƵƐƚŽŵĞƌƐǁŚŽƉƵƌĐŚĂƐĞĚ
_______________________________________ ƐĞƌǀŝĐĞƐĨŽƌĂLJĞĂƌĂƚĂƟŵĞ͘
ĚĚŝƟŽŶĂůůLJ͕ƚŚĞLJĐŽƵůĚĚŽƐŽŵĞ
_______________________________________ ĐƵƐƚŽŵƉƌŽŐƌĂŵƐƚŽŚĞůƉůŽĐĂů
ďƵƐŝŶĞƐƐĞƐ͊
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ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ | Planning | 119

 ZĞŇĞĐƟŽŶ͗ DĂƌŬĞƟŶŐLJŽƵƌƵƐŝŶĞƐƐ
ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
120 | Planning | ĞǀĞůŽƉŝŶŐĂDĂƌŬĞƟŶŐWůĂŶ
hƐĞ ƚŚŝƐ ƐƉĂĐĞ ƚŽ ƌĞŇĞĐƚ ŽŶ ƚŚĞ ĨŽůůŽǁŝŶŐ ƋƵĞƐƟŽŶƐ͗ ,Žǁ ǁŝůů LJŽƵ ŵĂŬĞ LJŽƵƌ ƚĂƌŐĞƚ ŵĂƌŬĞƚ
ĂǁĂƌĞŽĨLJŽƵƌƉƌŽĚƵĐƚ͍tŚĂƚĂƌĞƚŚĞĨŽƌŵƐŽĨĐŽŵŵƵŶŝĐĂƟŽŶƚŚĂƚLJŽƵƌƚĂƌŐĞƚƵƐĞƐŵŽƐƚŽŌĞŶ͍
tŚĂƚĐŽŵŵƵŶŝĐĂƟŽŶƚŽŽůƐǁŝůůLJŽƵĐŚŽŽƐĞ͍tŚĞƌĞǁŝůůLJŽƵƌƚĂƌŐĞƚŵĂƌŬĞƚůĞĂƌŶĂďŽƵƚ͕ƐĞĞĂŶĚ
ƉƵƌĐŚĂƐĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͍
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>> Developing
an Operations
Plan

DĂƉŽĨWƌŽĐĞƐƐ

8
^ƵƉƉůLJŚĂŝŶ
dĞĂŵĂŶĚdĂůĞŶƚ
ĞǀĞůŽƉŝŶŐzŽƵƌdĞĂŵ
/ŶƚŚŝƐĐŚĂƉƚĞƌLJŽƵǁŝůůƚŚŝŶŬĂďŽƵƚŚŽǁƚŽĞĸĐŝĞŶƚůLJƌƵŶLJŽƵƌďƵƐŝŶĞƐƐďLJŝĚĞŶƟĨLJŝŶŐƚŚĞ
ŵĂƚĞƌŝĂůƐĂŶĚƚĂƐŬƐLJŽƵŶĞĞĚƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘dŚŝƐĐŚĂƉƚĞƌ
ƉƌŽǀŝĚĞƐLJŽƵǁŝƚŚƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽĚŝǀĞĚĞĞƉŝŶƚŽŚŽǁLJŽƵƌĐŽŵƉĂŶLJǁŝůůĨƵŶĐƟŽŶ͘zŽƵǁŝůů
ĞdžĂŵŝŶĞƚŚĞĐƌĞĂƟŽŶ͕ĚŝƐƚƌŝďƵƟŽŶĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘KƉĞƌĂƚĞLJŽƵƌ
ďƵƐŝŶĞƐƐŝŶƚŚĞŵŽƐƚĞĸĐŝĞŶƚǁĂLJƉŽƐƐŝďůĞƚŽŵĂdžŝŵŝnjĞƚŚĞǀĂůƵĞLJŽƵĂĚĚƚŽLJŽƵƌĐƵƐƚŽŵĞƌƐ
ĂŶĚŝŶƚƵƌŶƚŚĞǀĂůƵĞLJŽƵĐƌĞĂƚĞĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͘

dŚĞďĞƐƚǁĂLJƚŽĞdžƉůĂŝŶƚŚĞŽƉĞƌĂƟŽŶƐŽĨLJŽƵƌďƵƐŝŶĞƐƐŝƐďLJůŽŽŬŝŶŐĂƚƚŚĞƐƵƉƉůLJĐŚĂŝŶ͘dŚĞ
ƐƵƉƉůLJĐŚĂŝŶƉƌŽǀŝĚĞƐĂƉŝĐƚƵƌĞŽĨǁŚĂƚLJŽƵƌŝŶƉƵƚƐĂƌĞ͕ǁŚĞƌĞLJŽƵǁŝůůŐĞƚƚŚĞŵ͕ŚŽǁLJŽƵ
ǁŝůůƵƐĞƚŚĞŵƚŽĐƌĞĂƚĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͕ĂŶĚŚŽǁLJŽƵǁŝůůĚŝƐƚƌŝďƵƚĞƚŚŝƐƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞƚŽLJŽƵƌĐƵƐƚŽŵĞƌƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

ĸĐŝĞŶĐLJ͗hƐŝŶŐŐŽŽĚƋƵĂůŝƚLJ Supply Chain Management: The

ŵĂƚĞƌŝĂůƐ͕ƌĞĚƵĐŝŶŐĐŽƐƚƐ͕ƐƉĞĞĚŝŶŐ ŵĂŶĂŐĞŵĞŶƚĂŶĚĐŽŽƌĚŝŶĂƟŽŶŽĨ
ƵƉƉƌŽĚƵĐƟŽŶƟŵĞ͕ĂŶĚƉƵƫŶŐ ĂƉƌŽĚƵĐƚ͛ƐƐƵƉƉůLJĐŚĂŝŶĨŽƌƚŚĞ
ŶĞĞĚƐĮƌƐƚŽǀĞƌǁĂŶƚƐ͘ ƉƵƌƉŽƐĞŽĨŝŶĐƌĞĂƐŝŶŐĞĸĐŝĞŶĐLJĂŶĚ
ƉƌŽĮƚĂďŝůŝƚLJ͘
/ŶƉƵƚƐ͗dŚĞƌĂǁŵĂƚĞƌŝĂůƐŶĞĞĚĞĚ
ƚŽŵĂŬĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘&Žƌ
ĞdžĂŵƉůĞ͕ĂŶŝŶƉƵƚŽĨĂĚƌĞƐƐƐŚŽƉ
ŝƐĨĂďƌŝĐ͘
Outputs:dŚĞĮŶŝƐŚĞĚƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞLJŽƵǁŝůůďĞƐĞůůŝŶŐƚŽLJŽƵƌ
ĐƵƐƚŽŵĞƌ͘
Suppliers:sĞŶĚŽƌƐLJŽƵƉƵƌĐŚĂƐĞ
LJŽƵƌŝŶƉƵƚƐĨƌŽŵ͘
Supply Chain:ĐŚĂŶŶĞůŽĨ
ĚŝƐƚƌŝďƵƟŽŶďĞŐŝŶŶŝŶŐǁŝƚŚ
ƚŚĞƐƵƉƉůŝĞƌŽĨŵĂƚĞƌŝĂůƐŽƌ
ĐŽŵƉŽŶĞŶƚƐ͕ĞdžƚĞŶĚŝŶŐƚŚƌŽƵŐŚ
ĂŵĂŶƵĨĂĐƚƵƌŝŶŐƉƌŽĐĞƐƐƚŽƚŚĞ
ĚŝƐƚƌŝďƵƚŽƌĂŶĚƌĞƚĂŝůĞƌ͕ĂŶĚ
ƵůƟŵĂƚĞůLJƚŽƚŚĞĐŽŶƐƵŵĞƌ͘
 Lesson 8.1: Map of Process
EŽǁƚŚĂƚLJŽƵŚĂǀĞŝĚĞŶƟĮĞĚĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽĐƌĞĂƚĞĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŚĂƚƐĞƌǀĞƐĂŶĞĞĚŝŶLJŽƵƌ
ĐŽŵŵƵŶŝƚLJ͕ŝƚǁŝůůďĞĐƌŝƟĐĂůƚŚĂƚLJŽƵĮŐƵƌĞŽƵƚŚŽǁƚŽŵĂŬĞƚŚĂƚŝĚĞĂƚƌĂŶƐĨŽƌŵĨƌŽŵũƵƐƚĂƚŚŽƵŐŚƚŽŶ
ƉĂƉĞƌƚŽĂƌĞĂůŽƉĞƌĂƟŶŐďƵƐŝŶĞƐƐ͘/ŶƚŚĞĨŽůůŽǁŝŶŐĞdžĞƌĐŝƐĞƐLJŽƵǁŝůůďĞŐŝŶƚŽƚŚŝŶŬĂďŽƵƚƚŚĞƉƌŽĐĞƐƐ
ďLJ ǁŚŝĐŚ LJŽƵ ƉůĂŶ ƚŽ ƉƌŽĚƵĐĞ ĂŶĚ ĚŝƐƚƌŝďƵƚĞ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ͘ DĂƉƉŝŶŐ ŽƵƚ LJŽƵƌ ĚĂLJ ƚŽ ĚĂLJ
ŽƉĞƌĂƟŽŶƐ ŝƐ ŶŽƚ ŽŶůLJ ŝŵƉŽƌƚĂŶƚ ƐŽ ƚŚĂƚ LJŽƵ ŚĂǀĞ Ă ƉůĂŶ ǁŚĞŶ LJŽƵ ĚŽ ƐƚĂƌƚ LJŽƵƌ ďƵƐŝŶĞƐƐ͕ ďƵƚ ĂůƐŽ
ďĞĐĂƵƐĞ ŚŽǁ LJŽƵ ĚŝƐƚƌŝďƵƚĞ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ŝƐ ŝŶ ŝƚƐĞůĨ ĂŶ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ ƚŚŝŶŬ ĐƌĞĂƟǀĞůLJ͕ ďĞ
ŝŶŶŽǀĂƟǀĞ͕ĂŶĚƌĞŝŶĨŽƌĐĞLJŽƵƌďƵƐŝŶĞƐƐ͛ƐƐƚƌĂƚĞŐLJ͘:ƵƐƚĂƐLJŽƵƌŵĂƌŬĞƟŶŐƉůĂŶŝƐĞŶƟƌĞůLJƐŚĂƉĞĚďLJLJŽƵƌ
ƚĂƌŐĞƚŵĂƌŬĞƚ͕LJŽƵƌŽƉĞƌĂƟŽŶƐƉůĂŶƐŚŽƵůĚďĞũƵƐƚĂƐĐĂƌĞĨƵůůLJĐƌĂŌĞĚƚŽŵĂƚĐŚƚŚĞŶĞĞĚLJŽƵĂƌĞƐĞƌǀŝŶŐ͘
&ŽƌĞdžĂŵƉůĞ͕ƚŚĞƌĞĂƌĞƚǁŽƌĞƐƚĂƵƌĂŶƚƐƚŚĂƚďŽƚŚƐĞƌǀĞƐŝŵŝůĂƌĨŽŽĚƐĂŶĚĂƌĞďŽƚŚǀĞƌLJƐƵĐĐĞƐƐĨƵůďƵƚĂƌĞ
ĐŽŵƉůĞƚĞůLJĚŝīĞƌĞŶƚŝŶƚŚŝĞƌƐƚƌĂƚĞŐLJĂŶĚŝŶƚŚĞŝƌŽƉĞƌĂƟŽŶƐƉůĂŶ͘KŶĞƌĞƐƚĂƵƌĂŶƚ͛ƐƐƚƌĂƚĞŐLJŝƐƚŽƐĞƌǀĞ
ĐƵƐƚŽŵĞƌƐƋƵŝĐŬůLJĂŶĚĐŚĞĂƉůLJ͘dŚĞŝƌŽƉĞƌĂƟŽŶƐƉůĂŶƌĞŇĞĐƚƐƚŚŝƐďLJŚĂǀŝŶŐĐƵƐƚŽŵĞƌƐƐƚĂŶĚŝŶůŝŶĞĂŶĚ
ŽƌĚĞƌĂƚĂĐŽƵŶƚĞƌ͕ĂƌƌĂŶŐŝŶŐƐŵĂůůƚĂďůĞƐĐůŽƐĞƚŽŐĞƚŚĞƌ͕ĂŶĚďLJƉƌŽǀŝĚŝŶŐƚŚĞŽƉƟŽŶŽĨƉĂĐŬĂŐŝŶŐĨŽƌ
ĨŽŽĚĐƵƐƚŽŵĞƌƐǁĂŶƚƚŽĞĂƚŽŶƚŚĞŐŽŽƌĂƚŚŽŵĞ͘dŚĞŽƚŚĞƌƌĞƐƚĂƵƌĂŶƚ͛ƐƐƚƌĂƚĞŐLJŝƐƚŽƐĞƌǀĞĐƵƐƚŽŵĞƌƐ
ĂŶĞdžƉĞƌŝĞŶĐĞǁŝƚŚĂŶŝĐĞĂƚŵŽƐƉŚĞƌĞĂŶĚŚŝŐŚƋƵĂůŝƚLJĨŽŽĚ͘dŚĞŝƌŽƉĞƌĂƟŽŶƐƉůĂŶƌĞŇĞĐƚƐƚŚŝƐďLJŚĂǀŝŶŐ
ĐƵƐƚŽŵĞƌƐƐŝƚĚŽǁŶ͕ůŽŽŬĂƚĂŵĞŶƵ͕ĂŶĚƚŚĞŶŽƌĚĞƌƚŚƌŽƵŐŚĂǁĂŝƚĞƌ͘ŽƚŚƌĞƐƚĂƵƌĂŶƚƐƐĞƌǀĞƐŝŵŝůĂƌ
ĨŽŽĚ͕ďƵƚƚŚĞŝƌƐĞƌǀŝĐĞƐĂƌĞǀĞƌLJĚŝīĞƌĞŶƚͲͲŽŶĞŵĞĞƚƐƚŚĞŶĞĞĚŽĨŐĞƫŶŐĨŽŽĚĨĂƐƚĂŶĚƚŚĞŽƚŚĞƌŵĞĞƚƐ
ƚŚĞŶĞĞĚŽĨŚĂǀŝŶŐĂƐƉĞĐŝĂůĚŝŶŝŶŐĞdžƉĞƌŝĞŶĐĞ͘ĞĐĂƵƐĞƚŚĞŝƌƐĞƌǀŝĐĞƐĂƌĞĚŝīĞƌĞŶƚ͕ƚŚĞŝƌƐƚƌĂƚĞŐŝĞƐĂƌĞ
ĚŝīĞƌĞŶƚĂŶĚƚŚŝĞƌŽƉĞƌĂƟŽŶƐƉůĂŶƐĂƌĞĂůŝŐŶĞĚƚŽƌĞŝŶĨŽƌĐĞƚŚŝƐ͘

Ɛ LJŽƵ ŵĂƉ ŽƵƚ LJŽƵƌ ŽƉĞƌĂƟŽŶƐ ƉůĂŶ͕ ŝƚ ǁŝůů ĂůƐŽ ďĞ ŝŵƉŽƌƚĂŶƚ ƚŽ ďĞŐŝŶ ƚŽ ŝĚĞŶƟĨLJ ǁŚĂƚ ŝŶƉƵƚƐ LJŽƵ
ǁŝůůŶĞĞĚƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂŶĚǁŚĂƚĐŚĂƌĂĐƚĞƌŝƐƟĐƐĞĂĐŚŝŶƉƵƚƐŚŽƵůĚ
ŚĂǀĞ͘/ŶƉƵƚƐĂƌĞĂůůŽĨƚŚĞŵĂƚĞƌŝĂůƐLJŽƵǁŝůůŶĞĞĚƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞLJŽƵƌŽƵƚƉƵƚͲͲƚŚĞƉƌŽĚƵĐƚŽƌ
ƐĞƌǀŝĐĞLJŽƵĂƌĞĐƌĞĂƟŶŐ͘dŚĞƌĞĂƌĞĂĮǀĞďĂƐŝĐĐĂƚĞŐŽƌŝĞƐŽĨŝŶƉƵƚƐ͗

• Raw materials:ƚŚĞďĂƐŝĐŵĂƚĞƌŝĂůƐŶĞĞĚĞĚƚŽŵĂŬĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘tŽŽĚŝƐĂŶ
ĞdžĂŵƉůĞŽĨĂƌĂǁŵĂƚĞƌŝĂůŶĞĞĚĞĚƚŽŵĂŬĞĂĐŚĂŝƌ͘
• Plant:ƚŚĞďƵŝůĚŝŶŐŽƌƉůĂĐĞǁŚĞƌĞLJŽƵǁŝůůƉƌŽĚƵĐĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ĨĂĐƚŽƌLJŝƐĂŶ
ĞdžĂŵƉůĞŽĨĂƉůĂŶƚŶĞĞĚĞĚƚŽŵĂŶƵĨĂĐƚƵƌĞƐƚĞĞů͘ƉĂŝŶƟŶŐƐƚƵĚŝŽŝƐĂŶĞdžĂŵƉůĞŽĨĂƉůĂŶƚ
ŶĞĞĚĞĚƚŽĐƌĞĂƚĞĂƌƚǁŽƌŬ͘
ͻƋƵŝƉŵĞŶƚ͗ƚŚĞƚŽŽůƐLJŽƵǁŝůůƵƐĞƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ŚĂŵŵĞƌ
ŝƐĂŶĞdžĂŵƉůĞŽĨĞƋƵŝƉŵĞŶƚŶĞĞĚĞĚƚŽďƵŝůĚĂŚŽƵƐĞ͘
• Labor: ƚŚĞƉĞŽƉůĞǁŚŽǁŝůůƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ĐĂƐŚŝĞƌŝƐĂŶ
ĞdžĂŵƉůĞŽĨƚŚĞůĂďŽƌŶĞĞĚĞĚƚŽŽƉĞƌĂƚĞĂƐƚŽƌĞ͘ ZĞŵĞŵďĞƌ͕ŶŽƚĂůů
• Skill or Knowledge: ƚŚĞƐŬŝůůƐŽƌďĂĐŬŐƌŽƵŶĚŬŶŽǁůĞĚŐĞŶĞĐĞƐƐĂƌLJƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞ ďƵƐŝŶĞƐƐĞƐǁŝůůŶĞĞĚĂƉŚLJƐŝĐĂů
LJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘dĞĂĐŚŝŶŐŚŽǁƚŽƌĞĂĚĂŶĚǁƌŝƚĞƌĞƋƵŝƌĞƐŚĂǀŝŶŐŬŶŽǁůĞĚŐĞŽĨƌĞĂĚŝŶŐ ŽĸĐĞďƵŝůĚŝŶŐŽƌĨŽƌŵĂů͚ƉůĂŶƚ͛͊

ĂŶĚǁƌŝƟŶŐ͘

/ƚĐĂŶďĞŚĞůƉĨƵůƚŽĐĂƚĞŐŽƌŝnjĞLJŽƵƌŝŶƉƵƚƐǁŚĞŶƚŚŝŶŬŝŶŐĂďŽƵƚǁŚĂƚŝƚĐŽƐƚƐƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞ
LJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘,ŽǁƚŽŬĞĞƉƚƌĂĐŬŽĨƚŚĞƐĞĐŽƐƚƐŝŶLJŽƵƌĂĐĐŽƵŶƟŶŐƌĞĐŽƌĚƐǁŝůůďĞĚŝƐĐƵƐƐĞĚ
ŝŶ ƚŚĞ ŶĞdžƚ ĐŚĂƉƚĞƌ͘ zŽƵ ǁŝůů ŵŽƐƚ ůŝŬĞůLJ ĞŶĚ ƵƉ ŶĞĞĚŝŶŐ Ăůů ƚLJƉĞƐ ŽĨ ŝŶƉƵƚƐ ďƵƚ LJŽƵ ŵŝŐŚƚ ŶĞĞĚ ŽŶĞ
ŝŶ ŐƌĞĂƚĞƌ ƋƵĂŶƟƚLJ ƚŚĂŶ ŽƚŚĞƌƐ͘ zŽƵ ŵŽƐƚ ůŝŬĞůLJ ǁŝůů ŶĞĞĚ ĚŝīĞƌĞŶƚ ŝŶƉƵƚƐ Ăƚ ĚŝīĞƌĞŶƚ ƉĂƌƚƐ ŝŶ LJŽƵƌ
ŽƉĞƌĂƟŽŶƐƉƌŽĐĞƐƐ͘/ƚǁŝůůďĞŝŵƉŽƌƚĂŶƚƚŽŶŽƚŽŶůLJŝĚĞŶƟĨLJLJŽƵƌŝŶƉƵƚƐ͕ďƵƚĂůƐŽƚŽŝĚĞŶƟĨLJǁŚĞƌĞŝŶ
LJŽƵƌŽƉĞƌĂƟŽŶƐƉƌŽĐĞƐƐLJŽƵŶĞĞĚĞĂĐŚŝŶƉƵƚ͘

/ƚŝƐƟŵĞĨŽƌ^ĂŵĂŶĚ'ƌĂĐĞ͛ƐĨƌŝĞŶĚƐǁŚŽǁĂŶƚƚŽƐƚĂƌƚƵƉDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚŽŵĂŬĞĂŶ
ŽƉĞƌĂƟŽŶƐ ƉůĂŶ͘ dŚĞLJ ŬŶŽǁ ƚŚĂƚ ůŝƩĞƌŝŶŐ ŝƐ Ă ƉƌŽďůĞŵ ŝŶ ƚŚĞŝƌ ĐŽŵŵƵŶŝƚLJ ĂŶĚ ƚŚĞLJ ŚĂǀĞ ĚŝƐĐŽǀĞƌĞĚ
ƚŚĂƚ ƚŚĞƌĞ ŝƐ Ă ŶĞĞĚ ƚŽ ŚĞůƉ ŚŽŵĞƐ ĂŶĚ ƐŵĂůů ďƵƐŝŶĞƐƐĞƐ ƉƌŽƉĞƌůLJ ĚŝƐƉŽƐĞ ŽĨ ƚŚĞŝƌ ƚƌĂƐŚ͘ dŚĞLJ ŚĂǀĞ
ĚĞĐŝĚĞĚƚŽǀŝƐŝƚƉĞŽƉůĞ͛ƐŚŽŵĞƐƚŽƉŝĐŬƵƉƚŚĞŝƌƚƌĂƐŚ͕ƐŽƌƚŝƚ͕ĂŶĚĚĞůŝǀĞƌŝƚƚŽƚŚĞĐŽƌƌĞĐƚĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJ͘
&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞLJƌĞĂůŝnjĞƚŚĂƚǁŚĞŶƚŚĞLJƐŽƌƚƚŚĞƚƌĂƐŚ͕ƚŚĞLJĐĂŶƉƵůůŽƵƚŽƌŐĂŶŝĐŝƚĞŵƐƚŽďĞĐŽŵƉŽƐƚĞĚ
ĂŶĚƚŚĞŶƐĞůůƚŚĞĐŽŵƉŽƐƚƚŽŶĞĂƌďLJĨĂƌŵĞƌƐ͘dŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚĞĂŵŝƐƌĞĂůůLJĞdžĐŝƚĞĚ
ĂďŽƵƚƚŚŝĞƌŝĚĞĂďƵƚƚŚĞLJŶŽǁŶĞĞĚƚŽƐŝƚĚŽǁŶĂŶĚĮŐƵƌĞŽƵƚŚŽǁĞdžĂĐƚůLJƚŚĞLJǁŝůůƌƵŶƚŚŝƐďƵƐŝŶĞƐƐŽŶ
ĂĚĂŝůLJďĂƐŝƐ͘^ĂŵĂŶĚ'ƌĂĐĞƐƵŐŐĞƐƚĞĚƚŚĂƚƚŚĞLJƐƚĂƌƚďLJĚƌĂǁŝŶŐĂŵĂƉŽĨƚŚĞŝƌĚĂLJƚŽĚĂLJŽƉĞƌĂƟŽŶƐ
ĂŶĚŝŶĐůƵĚĞǁŚĂƚƌĂǁŵĂƚĞƌŝĂůƐ͕ƉůĂŶƚ͕ĂŶĚĞƋƵŝƉŵĞŶƚƚŚĞLJǁŝůůŶĞĞĚĂƚĚŝīĞƌĞŶƚƉĂƌƚƐŽĨƚŚĞƉƌŽĐĞƐƐ͘

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 123

tŚĞŶDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚĮƌƐƚƐƚĂƌƚƐƵƉ͕ƚŚĞƚĞĂŵǁŝůůŶĞĞĚƚŽĞŶůŝƐƚŚŽŵĞƐĂŶĚƐŵĂůůďƵƐŝŶĞƐƐĞƐŝŶƚŚĞŶĞĂƌďLJĐŽŵŵƵŶŝƚLJƚŽŚŝƌĞ
ƚŚĞŝƌƚƌĂƐŚŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐĨŽƌĂŵŽŶƚŚůLJĨĞĞ͘dŚĞĮƌƐƚƐƚĞƉŝŶƚŚĞŝƌŽƉĞƌĂƟŽŶƐƉůĂŶŝƐƚŽƵƐĞƚǁŽŵŽĚŝĮĞĚďŝŬĞƐƚŽƌŝĚĞƚŽƚŚĞŚŽŵĞƐŽĨƚŚĞŝƌ
ĐůŝĞŶƚƐ͕ƉŝĐŬƵƉƚŚĞŝƌƚƌĂƐŚ͕ĂŶĚƐƵƉƉůLJƚŚĞŝƌĐůŝĞŶƚƐǁŝƚŚŶĞǁƚƌĂƐŚďĂŐƐ͘dŚĞƚĞĂŵǁŝůůƚŚĞŶďƌŝŶŐƚŚĞĐŽůůĞĐƚĞĚƚƌĂƐŚďĂŐƐďĂĐŬƚŽƚŚĞŝƌƉůĂŶƚƐŝƚĞ
ǁŚŝĐŚŝƐůŽĐĂƚĞĚŝŶƚŚĞďĂĐŬLJĂƌĚŽĨƚŚĞĨŽƵŶĚĞƌ ǁŚĞƌĞŝƚǁŝůůďĞƉƌŽĐĞƐƐĞĚ͘dŚĞƚĞĂŵǁŝůůƐŽƌƚƚŚĞƚƌĂƐŚ͕ƌĞƉĂĐŬĂŐĞŝƚ͕ĂŶĚĚĞůŝǀĞƌŝƚƚŽƚŚĞĐŽƌƌĞĐƚ
ĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJďLJďŝŬĞ͘KƌŐĂŶŝĐŝƚĞŵƐǁŚŝĐŚĐĂŶďĞĐŽŵƉŽƐƚĞĚǁŝůůďĞĐŽůůĞĐƚĞĚŝŶĂƐŵĂůůƉůŽƚŽĨůĂŶĚŶĞĂƌƚŚĞƐŽƌƟŶŐƐŝƚĞ͘dŚŝƐĐŽŵƉŽƐƚĐĂŶďĞ
ƉƵƌĐŚĂƐĞĚďLJŶĞĂƌďLJĨĂƌŵĞƌƐ͘ƐLJŽƵĐĂŶƚĞůůĨƌŽŵƚŚĞŵĂƉ͕DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŝůůŶĞĞĚƉůĂƐƟĐďĂŐƐĂƐĂƌĂǁŵĂƚĞƌŝĂů͕ƚǁŽŵŽĚŝĮĞĚ
ďŝŬĞƐĨŽƌĞƋƵŝƉŵĞŶƚ͕ĂŶĚƚŚĞĨŽƵŶĚĞƌ͛ƐďĂĐŬLJĂƌĚĂƐƚŚĞƉůĂŶƚƐŝƚĞ͘

Metropolis Trash Management

Process Map

farmer’s home
PLANT
Sorting site located in
backyard of home
EQUIPMENT
Bikes will be modified to (4) Compost sold
be able to carry multiple founder’s home to farmers.
bags of trash
backyard compost

(2) Sort the trash. Put

decomposable items in
compost. customer’s home
(1) Pick up trash from
each customer’s home
and bring it to the
sorting site.

customer’s home

trash facility

RAW MATERIALS
Give bags to customers
customer’s home for them to collect their
trash in
(3) Deliver sorted trash to
correct disposal facility.

124 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

 Exercise 8.1: Your Map
/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ĚƌĂǁĂŵĂƉŽĨĂůůƚŚĞďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐƚŚĂƚĂƌĞƌĞƋƵŝƌĞĚƚŽƉƌŽĚƵĐĞĂŶĚĚŝƐƚƌŝďƵƚĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘dŚŝƐ
ŵĂƉƐŚŽƵůĚŝŶĐůƵĚĞĞǀĞƌLJƚŚŝŶŐĨƌŽŵŐĂƚŚĞƌŝŶŐƐƵƉƉůŝĞƐƚŽĚĞůŝǀĞƌŝŶŐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŽƚŚĞĐƵƐƚŽŵĞƌ͘ŌĞƌLJŽƵĚƌĂǁƚŚĞŵĂƉ͕
ŝĚĞŶƟĨLJƚŚĞƌĂǁŵĂƚĞƌŝĂůƐ͕ƉůĂŶƚ͕ĂŶĚĞƋƵŝƉŵĞŶƚŶĞĞĚĞĚĂƚĚŝīĞƌĞŶƚƉĂƌƚƐŽĨƚŚĞƉƌŽĐĞƐƐ͘

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 125

 EŽǁƚŚĂƚLJŽƵŚĂǀĞĂŵĂƉŽĨLJŽƵƌƉƌŽĐĞƐƐĂŶĚŚĂǀĞǁƌŝƩĞŶĚŽǁŶƚŚĞƌĂǁŵĂƚĞƌŝĂůƐ͕ƉůĂŶƚ͕ĂŶĚĞƋƵŝƉŵĞŶƚ
ƚŚĂƚLJŽƵǁŝůůŶĞĞĚĂƚĚŝīĞƌĞŶƚƉŽŝŶƚƐŝŶƚŚĂƚƉƌŽĐĞƐƐ͕ŝƚŵŝŐŚƚďĞƟŵĞƚŽƐƚĞƉďĂĐŬĂŶĚƚŚŝŶŬĂďŽƵƚǁŚĂƚ
LJŽƵǁĂŶƚǀĞƌƐƵƐǁŚĂƚLJŽƵƌĞĂůůLJŶĞĞĚƚŽƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐ͘ĞĐĂƵƐĞŽĨƌĞƐŽƵƌĐĞĐŽŶƐƚƌĂŝŶƚƐ͕ŝƚŝƐƵƐƵĂůůLJ
ŶŽƚƉŽƐƐŝďůĞƚŽŚĂǀĞĞǀĞƌLJƚŚŝŶŐLJŽƵǁĂŶƚĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͕ďƵƚŝŶŽƌĚĞƌƚŽŵĂŬĞƐƵƌĞLJŽƵĐĂŶŽƉĞƌĂƚĞ
LJŽƵŶĞĞĚƚŽďĞĐůĞĂƌŽŶǁŚĂƚLJŽƵĂďƐŽůƵƚĞůLJŶĞĞĚŝŶŽƌĚĞƌƚŽƉƌŽĚƵĐĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ƚƚŚŝƐ
ƉŽŝŶƚŝƚǁŝůůďĞŝŵƉŽƌƚĂŶƚĨŽƌƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚĞĂŵƚŽƌĞͲĂƐƐĞƐƐĞĂĐŚŝƚĞŵŝĚĞŶƟĮĞĚ
ŽŶƚŚĞŵĂƉĂŶĚĂƐŬ͕͞ŽǁĞƌĞĂůůLJŶĞĞĚƚŚŝƐ͕ŽƌŝƐƚŚĞƌĞĂǁĂLJǁĞĐĂŶĚĞƐŝŐŶŽƵƌŽƉĞƌĂƟŽŶƐƐŽƚŚĂƚǁĞ
ĐĂŶŐĞƚƐƚĂƌƚĞĚǁŝƚŚŽƵƚƚŚŝƐŝƚĞŵ͍͟&ŽƌĞdžĂŵƉůĞ͕'ƌĂĐĞĂŶĚ^Ăŵ͛ƐĨƌŝĞŶĚƐŵĂLJƚŚŝŶŬƚŚĂƚƚŚĞLJǁĂŶƚƚŽ
ŚĂǀĞĮǀĞďŝĐLJĐůĞƐƚŽƐƚĂƌƚǁŝƚŚďƵƚƚŚĞLJƉƌŽďĂďůLJŽŶůLJƌĞĂůůLJŶĞĞĚƚǁŽďŝŬĞƐƚŽƐƚĂƌƚǁŝƚŚ͘dŚŝƐĞdžĞƌĐŝƐĞ
ǁŝůůŚĞůƉLJŽƵďĞĂďůĞƚŽƐƚĂƌƚƵƉLJŽƵƌďƵƐŝŶĞƐƐŵŽƌĞƋƵŝĐŬůLJ͕ŽŶĂƐŵĂůůĞƌďƵĚŐĞƚ͕ĂŶĚǁŝƚŚůĞƐƐƌŝƐŬ͘

Exercise 8.2: Wants Versus Needs

Go back to your process map in the previous exercise and circle all of the inputs (raw materials,
ƉůĂŶƚ͕ĂŶĚĞƋƵŝƉŵĞŶƚͿLJŽƵĂďƐŽůƵƚĞůLJŶĞĞĚ in order to get started and write a brief statement
ĂďŽƵƚĞĂĐŚŝƚĞŵƚŚĂƚĞdžƉůĂŝŶƐǁŚLJLJŽƵĐĂŶŶŽƚĚŽǁŝƚŚŽƵƚŝƚ͘zŽƵŵĂLJĮŶĚƚŚĂƚLJŽƵĂĐƚƵĂůůLJ
ŶĞĞĚǀĞƌLJůŝƩůĞŽĨǁŚĂƚLJŽƵƉƵƚŽŶLJŽƵƌŵĂƉŽƌLJŽƵŵŝŐŚƚĮŶĚƚŚĂƚLJŽƵŶĞĞĚĂůůŽĨŝƚ͘

EŽǁƚŚĂƚLJŽƵŚĂǀĞĂŵĂƉŽĨLJŽƵƌƉƌŽĐĞƐƐĂŶĚLJŽƵŬŶŽǁǁŚĂƚƌĂǁŵĂƚĞƌŝĂůƐ͕ƉůĂŶƚ͕ĂŶĚĞƋƵŝƉŵĞŶƚLJŽƵ
ǁŝůůŶĞĞĚ͕ŝƚŝƐƟŵĞƚŽŝĚĞŶƟĨLJǁŚĞƌĞLJŽƵǁŝůůŐĞƚƚŚŽƐĞƐƵƉƉůŝĞƐĨƌŽŵ͘^ƵƉƉůŝĞƌƐĂƌĞƚŚĞƉĞŽƉůĞĂŶĚ
ŽƌŐĂŶŝnjĂƟŽŶƐĨƌŽŵǁŚŽŵLJŽƵǁŝůůŐĞƚĂůůŽĨLJŽƵƌŝŶƉƵƚƐ͘zŽƵŵĂLJŚĂǀĞŽŶĞƐƵƉƉůŝĞƌŽƌLJŽƵŵĂLJŚĂǀĞ
ŵĂŶLJĚŝīĞƌĞŶƚƐƵƉƉůŝĞƌƐ͘,ĞƌĞĂƌĞƐŽŵĞŝŵƉŽƌƚĂŶƚĂƐƉĞĐƚƐƚŽĐŽŶƐŝĚĞƌǁŚĞŶĞǀĂůƵĂƟŶŐLJŽƵƌƉŽƚĞŶƟĂů
ƐƵƉƉůŝĞƌƐ͗

• Cost:/ĚĞŶƟĨLJŚŽǁŵƵĐŚŵŽŶĞLJLJŽƵƌŝŶƉƵƚƐĂƌĞǁŽƌƚŚƉĂLJŝŶŐĨŽƌŝŶƌĞůĂƟŽŶƚŽLJŽƵƌĮŶŝƐŚĞĚ
ƉƌŽĚƵĐƚ͘ZĞŵĞŵďĞƌ͕ƐŽŵĞĐŽƐƚƐŵĂLJŶŽƚďĞŽďǀŝŽƵƐĂƚĮƌƐƚƐƵĐŚĂƐĚĞůŝǀĞƌLJĐŽƐƚƐĂŶĚƐĞƚƵƉ
ĨĞĞƐ͘tŚŝůĞŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽůŽŽŬĨŽƌǁĂLJƐƚŽƌĞĚƵĐĞĐŽƐƚ͕ŝƚƐŚŽƵůĚŶŽƚďĞǁŚĂƚŵĂŬĞƐLJŽƵƌĮŶĂů
ĚĞĐŝƐŝŽŶŽŶǁŚŝĐŚƐƵƉƉůŝĞƌƚŽďƵLJĨƌŽŵ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽůŽŽŬĂƚĂůůĂƐƉĞĐƚƐŽĨƚŚĞƐƵƉƉůŝĞƌďŽƚŚ
ƚŽĞŶƐƵƌĞLJŽƵĂƌĞĐƌĞĂƟŶŐĂƋƵĂůŝƚLJƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĞdžƉĞƌŝĞŶĐĞĨŽƌLJŽƵƌĐƵƐƚŽŵĞƌƐĂƐǁĞůůĂƐ
ƚŽďĞƐƵƌĞLJŽƵĂƌĞŵĂdžŝŵŝnjŝŶŐLJŽƵƌƉŽƐŝƟǀĞŝŵƉĂĐƚŽŶďŽƚŚƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂŶĚƐŽĐŝĞƚLJ͘
• Reliability:/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽĐŚŽŽƐĞĂƐƵƉƉůŝĞƌƚŚĂƚLJŽƵŬŶŽǁLJŽƵĐĂŶƚƌƵƐƚƚŽďĞŽŶƟŵĞĂŶĚ
ĐŽŶƐŝƐƚĞŶƚŝŶǁŚĂƚƚŚĞLJŽīĞƌLJŽƵ͘
• Quality:dŚĞŝŶƉƵƚƐLJŽƵĐŚŽŽƐĞǁŝůůĐŽŶƚƌŝďƵƚĞƚŽƚŚĞƋƵĂůŝƚLJŽĨLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĞdžƉĞƌŝĞŶĐĞ͘
:ƵƐƚůŝŬĞŚŽǁLJŽƵǁĂŶƚƚŽďƵLJĨƌŽŵƐƵƉƉůŝĞƌƐǁŚŽĂƌĞƌĞůŝĂďůĞ͕LJŽƵƌĐƵƐƚŽŵĞƌƐǁĂŶƚĂƉƌŽĚƵĐƚ
ŽƌƐĞƌǀŝĐĞƚŚĞLJĐĂŶƚƌƵƐƚ͘ZĞƐĞĂƌĐŚƚŚĞƋƵĂůŝƚLJŽĨƚŚĞŝŶƉƵƚƐLJŽƵĂƌĞůŽŽŬŝŶŐĨŽƌĂŶĚƐĞĞŬŽƵƚĂ
ƐƵƉƉůŝĞƌƚŚĂƚŵĞĞƚƐLJŽƵƌƋƵĂůŝƚLJĞdžƉĞĐƚĂƟŽŶƐ͘
• Social and environmental impact:ƐLJŽƵĐŽŶƟŶƵĞƚŽĚĞǀĞůŽƉLJŽƵƌƉůĂŶƚŽƐƚĂƌƚƵƉĂďƵƐŝŶĞƐƐ͕ŝƚ
ŝƐŝŵƉŽƌƚĂŶƚƚŽƌĞŵĞŵďĞƌLJŽƵƌĐŽƌĞǀĂůƵĞƐĂŶĚƚŚĂƚLJŽƵƐƚĂƌƚĞĚƚŚŝƐďƵƐŝŶĞƐƐǁŝƚŚƚŚĞŝŶƚĞŶƟŽŶ
ŽĨĐƌĞĂƟŶŐĂƐŽůƵƟŽŶĨŽƌĂƉƌŽďůĞŵŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚƚŚĞǁŽƌůĚ͘zŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ
ŝƐŶŽƚĂĐƚƵĂůůLJĂƐŽůƵƟŽŶŝĨŝŶƚŚĞƉƌŽĐĞƐƐŝƚŝƐĐƌĞĂƟŶŐŵŽƌĞƉƌŽďůĞŵƐĨŽƌƚŚĞĐŽŵŵƵŶŝƚLJ͘&Žƌ
ĞdžĂŵƉůĞ͕ŝĨLJŽƵĂƌĞƐĞůůŝŶŐĂƉƌŽĚƵĐƚƚŚĂƚŵĂŬĞƐLJŽƵƌĐƵƐƚŽŵĞƌ͛ƐůŝĨĞĞĂƐŝĞƌďƵƚLJŽƵĂƌĞďƵLJŝŶŐ
ƚŚĞƌĂǁŵĂƚĞƌŝĂůƐƚŽŵĂŬĞƚŚĂƚƉƌŽĚƵĐƚĨƌŽŵĂƐƵƉƉůŝĞƌǁŚŝĐŚŝƐŬŶŽǁŶĨŽƌƚƌĞĂƟŶŐŝƚƐǁŽƌŬĞƌƐ
ƵŶĨĂŝƌůLJ͕LJŽƵŵĂLJďĞĐƌĞĂƟŶŐŵŽƌĞƉƌŽďůĞŵƐŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJƚŚĂŶLJŽƵĂƌĞƐŽůǀŝŶŐ͘:ƵƐƚĂƐ
ĐƵƐƚŽŵĞƌƐ ĐĂŶ ǀŽƚĞ ǁŝƚŚ ƚŚĞŝƌ ŵŽŶĞLJ ǁŚĂƚ ďƵƐŝŶĞƐƐĞƐ ƚŚĞLJ ĐŚŽŽƐĞ ƚŽ ƐƵƉƉŽƌƚ͕ LJŽƵ ĐĂŶ ǀŽƚĞ
ǁŝƚŚLJŽƵƌŵŽŶĞLJďLJĐŚŽŽƐŝŶŐǁŚŝĐŚƐƵƉƉůŝĞƌƐƚŽďƵLJĨƌŽŵ͘tŚŝůĞŝƚŵĂLJŶŽƚĂůǁĂLJƐƐĞĞŵĞĂƐLJƚŽ
ĚŽ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽďĞĂůĞĂĚĞƌŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJďLJĞŶĐŽƵƌĂŐŝŶŐLJŽƵƌĐƵƐƚŽŵĞƌƐƚŽƐƵƉƉŽƌƚ
ĞƚŚŝĐĂůďƵƐŝŶĞƐƐĞƐĂƐǁĞůůĂƐďLJƐĞůĞĐƟŶŐĂŶĚĞŶĐŽƵƌĂŐŝŶŐƚŚĞƐƵƉƉůŝĞƌƐLJŽƵďƵLJĨƌŽŵƚŽƚŚŝŶŬ
ĂďŽƵƚŝŵƉĂĐƚ͘hůƟŵĂƚĞůLJ͕ŝƚŝƐĂůůĂďŽƵƚĞŶƐƵƌŝŶŐLJŽƵƌďƵƐŝŶĞƐƐ͛ƐƉƌĞƐĞŶĐĞŵĂŬĞƐƚŚĞǁŽƌůĚĂ
ďĞƩĞƌƉůĂĐĞ͘

ŌĞƌĞǀĂůƵĂƟŶŐƚŚĞƐĞĚŝīĞƌĞŶƚĂƐƉĞĐƚƐŽĨĞĂĐŚƐƵƉƉůŝĞƌ͕LJŽƵǁŝůůŶĞĞĚƚŽƚŚŝŶŬĂďŽƵƚǁŚĂƚƚƌĂĚĞͲŽīƐ
ŵĂŬĞƚŚĞŵŽƐƚƐĞŶƐĞŝŶŽƌĚĞƌĨŽƌLJŽƵƚŽŵĞĞƚƚŚĞŐŽĂůŽĨƉƌŽǀŝĚŝŶŐĐƵƐƚŽŵĞƌƐŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJǁŝƚŚĂ
ƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŚĂƚŵĂŬĞƐƚŚĞŝƌůŝǀĞƐďĞƩĞƌ͘DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚŶĞĞĚƐƚŽďƵLJƉůĂƐƟĐďĂŐƐ
ĨŽƌƚŚĞŝƌďƵƐŝŶĞƐƐĂŶĚƚŚĞLJĐĂŶŶŽƚĚĞĐŝĚĞǁŚĂƚƐƵƉƉůŝĞƌƚŽƵƐĞ͘'ƌĂĐĞĂŶĚ^ĂŵŚĂǀĞŚĞůƉĞĚƚŚĞƚĞĂŵ
ĐƌĞĂƚĞĂƚĂďůĞƚŚĂƚǁŝůůĂůůŽǁƚŚĞŵƚŽŵŽƌĞĞĂƐŝůLJĐŽŵƉĂƌĞƉŽƚĞŶƟĂůƐƵƉƉůŝĞƌƐ͘

126 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

 /ƚĞŵ͗ plastic garbage bags

Environmental &
Supplier Cost Reliability Quality
^ŽĐŝĂů/ŵƉĂĐƚ

Business
Local business Not very
Not as high of owner is very
well-known in Cheap reliable or
quality supportive of
the community consistent
the community

Business
Larger store
Very reliable owner is very
located further More expensive High quality
and consistent supportive of
away
the community

Samuel wants to go with a local business which is well known in the community. Although this supplier
ŝƐ ǁĞůů ŬŶŽǁŶ͕ 'ƌĂĐĞ ƐŚŽƉƐ ĨŽƌ ŚĞƌ ƉĞƌƐŽŶĂů ƉƌŽĚƵĐƚƐ ƚŚĞƌĞ ĂŶĚ ŽŌĞŶ ŶŽƟĐĞƐ ƚŚĂƚ ŚŝƐ ƉƌŽĚƵĐƚƐ
ĨƌĞƋƵĞŶƚůLJ ĐŚĂŶŐĞ ĂŶĚ ŚŝƐ ŚŽƵƌƐ ĂƌĞ ŝƌƌĞŐƵůĂƌ͘ /ŶƐƚĞĂĚ͕ 'ƌĂĐĞ ǁŽƵůĚ ůŝŬĞ ƚŽ ŐŽ ǁŝƚŚ Ă ůĂƌŐĞƌ ƐƚŽƌĞ
ůŽĐĂƚĞĚĨĂƌĂǁĂLJĨƌŽŵƚŚĞŝƌůŽĐĂƟŽŶ͘ůƚŚŽƵŐŚƚŚŝƐƐƵƉƉůŝĞƌŝƐĨĂƌĂǁĂLJ͕ŚĞĐŽƵůĚƐƵƉƉůLJĐŽŶƐŝƐƚĞŶƚ
products to them as he does others in their city. Samuel does agree the products from that supplier
ĂƌĞďĞƩĞƌƋƵĂůŝƚLJ͕ďƵƚƚŚĞLJĂƌĞĂůƐŽŵƵĐŚŵŽƌĞĞdžƉĞŶƐŝǀĞĂŶĚŚĞŝƐŶĞƌǀŽƵƐƚŚĂƚƚŚĞĐŽƐƚƐĂƌĞŚŝŐŚĞƌ͕
especially because they are just opening their business. Grace and Sam must help Metropolis Trash
DĂŶĂŐĞŵĞŶƚĐŚŽŽƐĞďĞƚǁĞĞŶƋƵĂůŝƚLJƉƌŽĚƵĐƚƐĂŶĚĐŽŶƐŝƐƚĞŶƚŚŽƵƌƐŽƌĐŽŶǀĞŶŝĞŶĐĞĂŶĚĐŽƐƚƐĂǀŝŶŐƐ͘
:ƵƐƚůŝŬĞ'ƌĂĐĞĂŶĚ^Ăŵ͛ƐĨƌŝĞŶĚƐ͕LJŽƵŵĂLJďĞĨĂĐĞĚǁŝƚŚƚƌĂĚĞͲŽīƐǁŚĞŶĚĞĐŝĚŝŶŐŽŶĂƐƵƉƉůŝĞƌ͘

Exercise 8.3: Comparing Suppliers

EŽǁŝƚŝƐƟŵĞƚŽŐŽŽƵƚĂŶĚƐƚĂƌƚůŽŽŬŝŶŐĨŽƌƐƵƉƉůŝĞƌƐĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͘hƐĞƚŚĞĐŚĂƌƚďĞůŽǁ
ƚŽůŝƐƚĂůůŽĨƚŚĞŝƚĞŵƐLJŽƵǁŝůůŶĞĞĚĨŽƌĚĂLJƚŽĚĂLJŽƉĞƌĂƟŽŶƐ͘dŚĞŶƌĞƐĞĂƌĐŚƚŚĞƐƵƉƉůŝĞƌƐŝŶ
your community who will be able to provide you with each item and record what you learn in
the tables below.

/ƚĞŵ͗
Environmental
Supplier Cost Reliability Quality
Θ^ŽĐŝĂů/ŵƉĂĐƚ

__________________
Which supplier will you buy this item from? Why?

_______________________________________
_______________________________________

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 127

 /ƚĞŵ͗
Environmental
Supplier Cost Reliability Quality
Θ^ŽĐŝĂů/ŵƉĂĐƚ

__________________
Which supplier will you buy this item from? Why?

_______________________________________
_______________________________________

/ƚĞŵ͗
Environmental
Supplier Cost Reliability Quality
Θ^ŽĐŝĂů/ŵƉĂĐƚ

__________________
Which supplier will you buy this item from? Why?

_______________________________________
_______________________________________

128 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

 /ƚĞŵ͗
Environmental
Supplier Cost Reliability Quality
Θ^ŽĐŝĂů/ŵƉĂĐƚ

__________________
Which supplier will you buy this item from? Why?

_______________________________________
_______________________________________

/ƚĞŵ͗
Environmental
Supplier Cost Reliability Quality
Θ^ŽĐŝĂů/ŵƉĂĐƚ

__________________
Which supplier will you buy this item from? Why?

_______________________________________
_______________________________________

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 129

Lesson 8.2: Supply Chain
ŐƌĞĂƚǁĂLJƚŽƐƵŵŵĂƌŝnjĞLJŽƵƌŽƉĞƌĂƟŽŶƐŝŶĂƉŝĐƚƵƌĞŝƐƚŚƌŽƵŐŚLJŽƵƌƐƵƉƉůLJĐŚĂŝŶ͘zŽƵƌƐƵƉƉůLJĐŚĂŝŶŝƐĂĐŚĂŝŶŽĨĂĐƟǀŝƟĞƐƚŚĂƚĐĂƉƚƵƌĞƐƚŚĞ
ŵŽǀĞŵĞŶƚŽĨƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĨƌŽŵƚŚĞƐƵƉƉůŝĞƌƚŽƚŚĞĐƵƐƚŽŵĞƌ͘/ŶƚŚŝƐĐĂƐĞ͕LJŽƵƌƐƵƉƉůLJĐŚĂŝŶǁŝůůďĞĂƐƵŵŵĂƌLJŽĨƚŚĞƉƌŽĐĞƐƐŵĂƉLJŽƵ
ƉƌĞǀŝŽƵƐůLJĐƌĞĂƚĞĚ͘LJĂŶĂůLJnjŝŶŐƚŚĞůŝŶŬƐŝŶƚŚĞǀĂůƵĞĐŚĂŝŶ͕LJŽƵĐĂŶŝĚĞŶƟĨLJǁĂLJƐƚŽƌĞŝŶĨŽƌĐĞLJŽƵƌďƵƐŝŶĞƐƐƐƚƌĂƚĞŐLJĂŶĚŝŶĚŽŝŶŐƐŽŝŶĐƌĞĂƐĞ
LJŽƵƌĐŽŵƉĞƟƟǀĞŶĞƐƐ͘

ŌĞƌLJŽƵŚĂǀĞŵĂƉƉĞĚŽƵƚLJŽƵƌƐƵƉƉůLJĐŚĂŝŶ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽĞǀĂůƵĂƚĞLJŽƵƌƐŽĐŝĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚĂƚĞǀĞƌLJůŝŶŬŽĨƚŚĞĐŚĂŝŶ͘ŌĞƌ
Ăůů͕ŝƚŝƐŶŽŐŽŽĚƚŽŽīĞƌĐƵƐƚŽŵĞƌƐĂƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƐŽůƵƟŽŶŝĨƚŽĚŽƐŽLJŽƵŶĞĞĚƚŽƉŽůůƵƚĞƚŚĞĞĂƌƚŚŽƌƚƌĞĂƚLJŽƵƌǁŽƌŬĞƌƐƉŽŽƌůLJ͘ǀĞŶĂ
ďƵƐŝŶĞƐƐůŝŬĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŚŝĐŚǁŽƌŬƐƚŽŚĞůƉƚŚĞŝƌĐŽŵŵƵŶŝƚLJƉƌŽƉĞƌůLJĚŝƐƉŽƐĞŽĨƚƌĂƐŚŵƵƐƚĂůǁĂLJƐďĞƚŚŝŶŬŝŶŐĂďŽƵƚŚŽǁ
ƚŚŝĞƌŽƉĞƌĂƟŽŶƐĂůƐŽĐƌĞĂƚĞǁĂƐƚĞŽƌŝŵƉĂĐƚƐŽĐŝĞƚLJ͘ŌĞƌŵĂƉƉŝŶŐŽƵƚƚŚĞŝƌƐƵƉƉůLJĐŚĂŝŶ͕DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚĂƐƐĞƐƐĞĚƚŚĞŝƌƉŽƚĞŶƟĂů
ƉŽƐŝƟǀĞĂŶĚŶĞŐĂƟǀĞŝŵƉĂĐƚŽŶƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂŶĚƐŽĐŝĞƚLJĂƚĞĂĐŚůŝŶŬŝŶƚŚĞĐŚĂŝŶ͘dŚĞŶ'ƌĂĐĞĂŶĚ^ĂŵŚĞůƉĞĚƚŚĞŝƌĨƌŝĞŶĚƐďƌĂŝŶƐƚŽƌŵǁĂLJƐ
ƚŽŝŶĐƌĞĂƐĞƚŚĞŝƌƉŽƐŝƟǀĞŝŵƉĂĐƚĂŶĚŵŝŶŝŵŝnjĞƚŚĞŝƌƉŽƚĞŶƟĂůůLJŶĞŐĂƟǀĞŝŵƉĂĐƚ͘

Metropolis Trash Management

Supply Chain

COLLECT TRASH SORT TRASH DELIVER TRASH

from home of each at the sorting site to the correct disposal
customer facility

SELL COMPOST
to nearby
COLLECT TRASH farmers
Impact on environment and society...

>> POSITIVE
Using bikes rather than a vehicle for transportation cuts
down on the use of fuel and on the release of carbon
emissions.
>> NEGATIVE
Using disposable plastic bags to contain trash is not the
most ideal as they are usually only used once. Is there an
alternative type of bag that is reusable which can be used
to collect trash?? At the very least, after sorting the
trash we can plan to reuse bags when repackaging the
trash to be delivered to the disposal facilities.
SORT TRASH
Impact on environment and society...
>> POSITIVE
It is important to sort the trash so that it can be disposed
of properly according to the material that it is made of. Some
items may be able to be recycled!
>> NEGATIVE
It will be important to protect our team from the trash while
they are sorting it. We can develop policies for how to handle
the trash safely and make sure we train anyone we hire.
DELIVER TRASH
Impact on environment and society...
>> POSITIVE
Using bikes rather than a vehicle for transportation cuts
down on the use of fuel and on the release of carbon
emissions.
>> NEGATIVE
Properly disposing of trash is important to keeping our
water and our land clean. Even better than disposing of
trash is f inding creative ways to reuse trash such as
making jewelry or art. Perhaps we can f ind someone who
would want to take some of our trash for reuse?
SELL COMPOST
Impact on environment and society...
>> POSITIVE
Collecting decomposable items to be composted
creates rich soil which can be used for growing fruits
and vegetables.

130 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

ŌĞƌƚŚŝŶŬŝŶŐĂďŽƵƚǁĂLJƐƚŽŵŝŶŝŵŝnjĞƚŚĞŝƌŶĞŐĂƟǀĞŝŵƉĂĐƚŽŶƚŚĞĞŶǀŝƌŽŶŵĞŶƚĂŶĚƐŽĐŝĞƚLJ͕ƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚĞĂŵĚŝĚƐŽŵĞ
ƌĞƐĞĂƌĐŚĂďŽƵƚǁŚĂƚƚŚĞLJĐŽƵůĚĚŽǁŝƚŚƌĞĐLJĐůĂďůĞŵĂƚĞƌŝĂůƐƚŚĞLJĐŽůůĞĐƚ͘dŚĞLJƋƵŝĐŬůLJůĞĂƌŶĞĚĨƌŽŵĂĨƌŝĞŶĚƚŚĂƚƚŚĞƌĞŝƐĂƌĞĐLJĐůŝŶŐƉůĂŶƚŝŶƚŚĞŝƌ
ĐŽŵŵƵŶŝƚLJƚŚĂƚƚŚĞLJĐĂŶƐĞůůƌĞĐLJĐůĂďůĞƐƚŽ͘dŚĞƚĞĂŵĚĞĐŝĚĞĚƚŽŝŶĐŽƌƉŽƌĂƚĞƚŚŝƐŝŶƚŽƚŚĞŝƌŽƉĞƌĂƟŽŶƐƐƚƌĂƚĞŐLJƌŝŐŚƚĂǁĂLJ͘

Exercise 8.4: Your Supply Chain

/ŶƚŚĞƐƉĂĐĞďĞůŽǁŵĂƉŽƵƚLJŽƵƌƐƵƉƉůLJĐŚĂŝŶ͘dŚĞŶ͕ĂƚĞĂĐŚůŝŶŬŝŶLJŽƵƌĐŚĂŝŶ͕ŝĚĞŶƟĨLJƉŽƐŝƟǀĞĂŶĚŶĞŐĂƟǀĞƐŽĐŝĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂů
ŝŵƉĂĐƚƐLJŽƵƌďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐŵŝŐŚƚŚĂǀĞŽŶƚŚĞĐŽŵŵƵŶŝƚLJĂŶĚǁŽƌůĚĂƐĂǁŚŽůĞ͘ŌĞƌLJŽƵŚĂǀĞŝĚĞŶƟĮĞĚƚŚĞƐĞƉŽƚĞŶƟĂůƉŽŝŶƚƐ
ŽĨŝŵƉĂĐƚ͕ďƌĂŝŶƐƚŽƌŵǁĂLJƐŝŶǁŚŝĐŚLJŽƵĐĂŶŝŶĐƌĞĂƐĞLJŽƵƌƉŽƐŝƟǀĞŝŵƉĂĐƚĂŶĚŵŝŶŝŵŝnjĞLJŽƵƌŶĞŐĂƟǀĞŝŵƉĂĐƚ͘ŌĞƌďƌĂŝŶƐƚŽƌŵŝŶŐ͕
ĐŝƌĐůĞƚŚĞŝĚĞĂƐƚŚĂƚLJŽƵĐŽŵŵŝƚƚŽŵĂŬŝŶŐƉĂƌƚŽĨLJŽƵƌŽƉĞƌĂƟŽŶƐƐƚƌĂƚĞŐLJŐŽŝŶŐĨŽƌǁĂƌĚĂŶĚ͕ŝĨŶĞĐĞƐƐĂƌLJ͕ƵƉĚĂƚĞƚŚĞƉŝĐƚƵƌĞŽĨLJŽƵƌ
Supply Chain.

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 131

 Your Business Plan
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Exercise 8.3͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
KƉĞƌĂƟŽŶƐ͗
WƌŽĚƵĐƟŽŶĂŶĚŝƐƚƌŝďƵƟŽŶ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶ
ĚĞƚĂŝůŚŽǁLJŽƵǁŝůůŐĞƚ
LJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŽ
ƚŚĞĐƵƐƚŽŵĞƌ͘ĞƐƵƌĞƚŽ
ŝŶĐůƵĚĞĂĚĞƐĐƌŝƉƟŽŶŽĨ
ĞĂĐŚůŝŶŬŝŶLJŽƵƌƐƵƉƉůLJ
ĐŚĂŝŶĂƐǁĞůůĂƐǁŚĂƚŝŶƉƵƚƐ
LJŽƵǁŝůůŶĞĞĚĂŶĚĨƌŽŵ
ǁŚŽŵLJŽƵǁŝůůŐĞƚƚŚĞŵ͘
132 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ
Lesson 8.3: Team and Talent
EŽǁƚŚĂƚLJŽƵŚĂǀĞĂƐĞŶƐĞŽĨǁŚĂƚLJŽƵŶĞĞĚƚŽĚŽŝŶŽƌĚĞƌƚŽŽƉĞƌĂƚĞLJŽƵƌďƵƐŝŶĞƐƐ͕ŝƚŝƐƟŵĞƚŽĮŐƵƌĞ
ŽƵƚŝĨLJŽƵŚĂǀĞĂůůƚŚĞŬŶŽǁůĞĚŐĞ͕ƐŬŝůůƐ͕ĂŶĚͬŽƌůĂďŽƌŶĞĐĞƐƐĂƌLJƚŽĚŽƚŚŽƐĞĂĐƟǀŝƟĞƐ͘dŽĮŐƵƌĞŽƵƚǁŚĂƚ
ƚĞĂŵĂŶĚǁŚĂƚƚĂůĞŶƚƐƚŚĞLJŶĞĞĚƚŽŚĂǀĞ͕^ĂŵĂŶĚ'ƌĂĐĞƐƵŐŐĞƐƚĞĚƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚ
ƚĞĂŵ ŵĂŬĞ Ă ƚĂďůĞ͘ &ŝƌƐƚ ƚŚĞLJ ŶĞĞĚ ƚŽ ŝĚĞŶƟĨLJ ǁŚĂƚ ĂĐƟǀŝƟĞƐ ŶĞĞĚ ƚŽ ďĞ ĐŽŵƉůĞƚĞĚ ĂƐ ƉĂƌƚ ŽĨ ĚĂŝůLJ
ŽƉĞƌĂƟŽŶƐŽĨƚŚĞďƵƐŝŶĞƐƐ͘dŚĞŶƚŚĞLJŶĞĞĚƚŽŝĚĞŶƟĨLJǁŚĂƚƐŬŝůů͕ŬŶŽǁůĞĚŐĞ͕ŽƌůĂďŽƌŝƐŶĞĐĞƐƐĂƌLJƚŽ
ĐŽŵƉůĞƚĞĞĂĐŚŽĨƚŚŽƐĞĂĐƟǀŝƟĞƐ͘>ĂƐƚůLJ͕ƚŚĞLJŶĞĞĚƚŽĂƐƐĞƐƐƚŚĞŝƌŽǁŶƚĞĂŵĂŶĚĮŐƵƌĞŽƵƚǁŚŽǁŝůůďĞ
ƌĞƐƉŽŶƐŝďůĞĨŽƌǁŚĂƚĂĐƟǀŝƟĞƐ͘dŚĞLJŵĂLJĮŶĚƚŚĂƚƚŚĞƌĞĂƌĞĂĐƟǀŝƟĞƐǁŚŝĐŚƚŚŽƐĞŽŶƚŚĞŝƌƚĞĂŵĚŽŶŽƚ
ŚĂǀĞƚŚĞƟŵĞƚŽĚŽǁŚŝĐŚŵĞĂŶƐƚŚĞLJŵĂLJŶĞĞĚƚŽĞŶƌŽůůŵŽƌĞƉĞŽƉůĞŽŶƚŚĞŝƌƚĞĂŵ͘dŚĞLJĂůƐŽŵĂLJ
ĮŶĚƚŚĂƚƚŚĞƌĞĂƌĞĂĐƟǀŝƟĞƐǁŚŝĐŚƚŚŽƐĞŽŶƚŚĞŝƌƚĞĂŵĚŽŶŽƚŚĂǀĞƚŚĞƐŬŝůůƐŽƌŬŶŽǁůĞĚŐĞƚŽĚŽǁŚŝĐŚ
ŵĞĂŶƐƚŚĞLJǁŝůůĞŝƚŚĞƌŶĞĞĚƚŽĂĐƋƵŝƌĞƚŚĞŬŶŽǁůĞĚŐĞŽƌƐŬŝůůƐŽƌĞŶƌŽůůƐŽŵĞŽŶĞŽŶƚŚĞŝƌƚĞĂŵǁŚŽŚĂƐ
ƚŚĞŬŶŽǁůĞĚŐĞŽƌƐŬŝůůƐƚŽĐŽŵƉůĞƚĞƚŚĞƚĂƐŬ͘
Task ^ŬŝůůŽƌ<ŶŽǁůĞĚŐĞZĞƋƵŝƌĞĚ Team Member
Pick up trash from homes Physical strength and learn
Mary
and bring to sorting site the route to homes
Sort trash Training in how to sort Mary and Isaac
Deliver trash to waste Physical strength and learn
Mary
facility the route to waste facility
Sell recyclable trash to Physical strength and learn
Mary
Recycling plant the route to recycling plant
Move organic materials to
Training in how to compost Mary
the compost
Sales skills and good with
Sell the compost Isaac
people
Handle the accounting Accounting knowledge ?
Sales skills and good with
Recruit homes to participate Isaac
people
Create f lyers or other Computer knowledge or
Isaac
promotional materials drawing skills
DĂƌLJĂŶĚ/ƐĂĂĐĂƌĞĞdžĐŝƚĞĚďĞĐĂƵƐĞƚŚĞLJŚĂǀĞƌĞĂůŝnjĞĚƚŚĂƚƚŚĞLJĂůŵŽƐƚŚĂǀĞĂůůƚŚĞƐŬŝůůĂŶĚŬŶŽǁůĞĚŐĞ
ĂůƌĞĂĚLJ ƚŽ ƌƵŶ ƚŚŝĞƌ ďƵƐŝŶĞƐƐ͘ DĂƌLJ ŝƐ ůŽǀĞƐ ƚŽ ŐŽ ŽŶ ůŽŶŐ ďŝŬĞ ƌŝĚĞƐ ĂŶĚ ŬŶŽǁƐ ƚŚĞ ĐŽŵŵƵŶŝƚLJ
ŶĞŝŐŚďŽƌŚŽŽĚƐǁĞůůƐŽƐŚĞǁŝůůŚĂŶĚůĞĂůůƚŚĞƚƌĂŶƐƉŽƌƚĂƟŽŶŽĨƚƌĂƐŚ͘DĂƌLJǁŝůůďĞƚŚĞůĞĂĚĞƌŽĨďƵƐŝŶĞƐƐ
ŽƉĞƌĂƟŽŶƐĂƐƐŚĞǁĞůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƉŝĐŬŝŶŐƵƉƚŚĞƚƌĂƐŚĨƌŽŵƚŚĞŝƌĐƵƐƚŽŵĞƌ͛ƐŚŽŵĞƐĂƐǁĞůůĂƐ
ĚĞůŝǀĞƌŝŶŐƚŚĞƐŽƌƚĞĚƚƌĂƐŚĂŶĚƌĞĐLJĐůĂďůĞƐƚŽƚŚĞĐŽƌƌĞĐƚĚŝƐƉŽƐĂůĨĂĐŝůŝƟĞƐ͘/ƐĂĂĐĂŶĚDĂƌLJǁŝůůƐŚĂƌĞ
ƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƐŽƌƟŶŐƚŚĞƚƌĂƐŚ͘/ƐĂĂĐŝƐŐŽŽĚĂƚĚƌĂǁŝŶŐĂŶĚŵĂŬŝŶŐƐŝŐŶƐĂŶĚŇLJĞƌƐ͘,ĞŝƐĂůƐŽ
ǀĞƌLJŐŽŽĚĂƚŝŶƚĞƌĂĐƟŶŐǁŝƚŚĐƵƐƚŽŵĞƌƐĨƌŽŵŐƌŽǁŝŶŐƵƉǁĂƚĐŚŝŶŐŚŝƐŵŽƚŚĞƌƌƵŶĂƚĂŝůŽƌŝŶŐƐŚŽƉ͘/ƐĂĂĐ
ǁŝůůďĞƚŚĞůĞĂĚĞƌŽĨŵĂƌŬĞƟŶŐĂŶĚƐĂůĞƐĂƐŚĞǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĐƌĞĂƟŶŐƉƌŽŵŽƟŽŶĂůŵĂƚĞƌŝĂůƐ͕
ƌĞĐƌƵŝƟŶŐŚŽŵĞƐĂŶĚƐŵĂůůďƵƐŝŶĞƐƐĞƐƚŽďƵLJƚŚŝĞƌƐĞƌǀŝĐĞƐ͕ĂŶĚƐĞůůŝŶŐƚŚĞĐŽŵƉŽƐƚƚŽŶĞĂƌďLJĨĂƌŵĞƌƐ͘
DĂƌLJĂŶĚ/ƐĂĂĐƌĞĂůŝnjĞƚŚĂƚŶĞŝƚŚĞƌŽĨƚŚĞŵŚĂǀĞĂŶLJŬŶŽǁůĞĚŐĞĂďŽƵƚŚŽǁƚŽŬĞĞƉĂĐĐŽƵŶƟŶŐƌĞĐŽƌĚƐ
ĨŽƌƚŚĞďƵƐŝŶĞƐƐ͘dŚĞLJƌĞĂůŝnjĞƚŚĂƚƚŚŝƐǁŝůůĞŝƚŚĞƌŶĞĞĚƚŽďĞƐŽŵĞƚŚŝŶŐƚŚĂƚƚŚĞLJůĞĂƌŶŽƌƚŚĂƚƚŚĞLJ
ƌĞĐƌƵŝƚ ƐŽŵĞŽŶĞ ĞůƐĞ ŽŶ ƚŽ ƚŚŝĞƌ ƚĞĂŵ ƚŽ ĚŽ͘ dŚĞLJ ĚĞĐŝĚĞ ƚŚĂƚ ǁŚŝůĞ ƚŚĞLJ ĂƌĞ ũƵƐƚ ƐƚĂƌƟŶŐ ƵƉ ƚŚĞŝƌ
ďƵƐŝŶĞƐƐ/ƐĂĂĐǁŝůůůĞĂƌŶƚŚĞďĂƐŝĐƐŽĨĂĐĐŽƵŶƟŶŐĨƌŽŵƚŚĞŝƌĨƌŝĞŶĚƐ^ĂŵĂŶĚ'ƌĂĐĞ͘
 Exercise 8.5: Your Team
&ŝƌƐƚ͕ƚƌĂŶƐůĂƚĞLJŽƵƌƉƌŽĐĞƐƐŵĂƉŝŶƚŽĂůŝƐƚŽĨƚĂƐŬƐŽƌĂĐƟǀŝƟĞƐƚŚĂƚŶĞĞĚƚŽďĞĐŽŵƉůĞƚĞĚĨŽƌ
ƚŚĞĚĂŝůLJŽƉĞƌĂƟŽŶŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘dŚĞŶŝĚĞŶƟĨLJǁŚĂƚƐŬŝůůƐŽƌŬŶŽǁůĞĚŐĞĂƌĞƌĞƋƵŝƌĞĚƚŽ
ĐŽŵƉůĞƚĞƚŚŽƐĞƚĂƐŬƐ͘>ĂƐƚůLJ͕ŐŽƚŚƌŽƵŐŚƚŚĞůŝƐƚĂŶĚŝĚĞŶƟĨLJǁŚŝĐŚƚĂƐŬƐLJŽƵŚĂǀĞƚŚĞƟŵĞƚŽ
ĚŽĂŶĚƚŚĞƚĂůĞŶƚƚŽĚŽ͘/ĨLJŽƵŚĂǀĞƚĞĂŵŵĂƚĞƐ͕ŝĚĞŶƟĨLJǁŚŝĐŚƚĂƐŬƐĞĂĐŚƉĞƌƐŽŶŽŶLJŽƵƌƚĞĂŵ
ŚĂƐƟŵĞƚŽĚŽĂŶĚƚŚĞƚĂůĞŶƚƚŽĚŽ͘ŝƌĐůĞĂŶLJƚĂƐŬƐůĞŌǁŚŝĐŚLJŽƵ;ŽƌLJŽƵƌƚĞĂŵͿĞŝƚŚĞƌĚŽĞƐŶ͛ƚ
ŚĂǀĞƚŚĞƟŵĞƚŽĚŽŽƌĚŽĞƐŶŽƚŚĂǀĞƚŚĞƚĂůĞŶƚƚŽĚŽ͘

Task ^ŬŝůůŽƌ<ŶŽǁůĞĚŐĞZĞƋƵŝƌĞĚ Team Member

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 133

 Your Business Plan /ƐƚŚĞƌĞĂŶLJƐŬŝůůƐŽƌŬŶŽǁůĞĚŐĞǁŚŝĐŚLJŽƵĚŽŶ͛ƚŚĂǀĞŶŽǁ;ĂŶĚŶŽŽŶĞŽŶLJŽƵƌƚĞĂŵŚĂƐŶŽǁͿ
ƚŚĂƚLJŽƵǁŝůůŶĞĞĚŝŶŽƌĚĞƌĨŽƌLJŽƵƌďƵƐŝŶĞƐƐƚŽŽƉĞƌĂƚĞ͍/ĨƐŽ͕ďƌŝĞŇLJǁƌŝƚĞŚŽǁLJŽƵƉůĂŶƚŽ
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ either learn that skill or knowledge or enroll someone on your team with that talent.
Exercise 8.5͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ _______________________________________
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗ _______________________________________
KƉĞƌĂƟŽŶƐ͗ _______________________________________
Team
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐ _______________________________________
ƚŚĞƚĞĂŵŵĞŵďĞƌƐǁŚŽ
ǁŝůůƌƵŶŶŝŶŐƚŚĞďƵƐŝŶĞƐƐ͘ _______________________________________
ĞƐƵƌĞƚŽŝŶĐůƵĚĞĂ
ĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚƚĞĂŵ _______________________________________
ŵĞŵďĞƌ͛ƐƌŽůĞŝŶƚŚĞ
ďƵƐŝŶĞƐƐ͛ƐŽƉĞƌĂƟŽŶƐ͘

Lesson 8.4: Developing Your Team

tŚĞƚŚĞƌŽƌŶŽƚLJŽƵŚĂǀĞĨŽƵŶĚƚŚĂƚLJŽƵǁŝůůďĞĂďůĞŽƉĞƌĂƚĞLJŽƵƌďƵƐŝŶĞƐƐďLJLJŽƵƌƐĞůĨ͕LJŽƵǁŝůůŚŽƉĞĨƵůůLJ
ĂƚƐŽŵĞƉŽŝŶƚŶĞĞĚĂƚĞĂŵĂƐLJŽƵƌďƵƐŝŶĞƐƐŐƌŽǁƐ͘/ŶƚŚŝƐůĞƐƐŽŶ͕LJŽƵǁŝůůďĞŝŶƚƌŽĚƵĐĞĚƚŽƚŚĞĂƌƚŽĨ
ƚĞĂŵďƵŝůĚŝŶŐĂŶĚĚĞǀĞůŽƉĐŽƌĞĐŽŵŵŝƚŵĞŶƚƐƚŚĂƚLJŽƵĂŶĚLJŽƵƌƚĞĂŵĂŐƌĞĞƚŽƵƉŚŽůĚĂƐĂďƵƐŝŶĞƐƐ͘
ǀĞŶŝĨLJŽƵĚŽŶ͛ƚŚĂǀĞĂƚĞĂŵĂƚƚŚŝƐƉŽŝŶƚ͕ŝƚǁŝůůďĞŝŵƉŽƌƚĂŶƚƚŽƌĞĂĚƚŚƌŽƵŐŚƚŚŝƐƐĞĐƟŽŶĂŶĚĚĞǀĞůŽƉ
LJŽƵƌŽǁŶĐŽƌĞĐŽŵŵŝƚŵĞŶƚƐĂƐƚŚĞLJĐĂŶĂůǁĂLJƐďĞƵƉĚĂƚĞĚŝĨƉĞŽƉůĞĂƌĞĞŶƌŽůůĞĚŽŶLJŽƵƌƚĞĂŵŝŶƚŚĞ
ĨƵƚƵƌĞ͘KŌĞŶƟŵĞƐǁĞŐŝǀĞǀĞƌLJůŝƩůĞƚŚŽƵŐŚƚƚŽƚĞĂŵĚĞǀĞůŽƉŵĞŶƚĂŶĚŝŶƐƚĞĂĚũƵŵƉƌŝŐŚƚŝŶƚŽƚŚĞ
ĚĞƚĂŝůƐŽĨƚŚĞƉƌŽũĞĐƚǁĞĂƌĞǁŽƌŬŝŶŐŽŶ͘ƵŝůĚŝŶŐƚĞĂŵƐƚŚĂƚǁŽƌŬƚŽŐĞƚŚĞƌƐƵĐĐĞƐƐĨƵůůLJ͕ŚŽǁĞǀĞƌ͕ƚĂŬĞƐ
ŝŶƚĞŶƟŽŶĂůƚŚŽƵŐŚƚĂŶĚĂĐƟŽŶ͘/ŶŽƌĚĞƌƚŽĮŐƵƌĞŽƵƚŚŽǁƚŽďƵŝůĚLJŽƵƌƚĞĂŵ͕ŝƚĐĂŶďĞŚĞůƉĨƵůƚŽƚŚŝŶŬŽĨ
LJŽƵƌƚĞĂŵ͛ƐƉƌŽĐĞƐƐĂƐŐŽŝŶŐďĂĐŬĂŶĚĨŽƌƚŚďĞƚǁĞĞŶĨŽƵƌĚŝīĞƌĞŶƚŵŽĚĞƐͲͲĨŽƌŵŝŶŐ͕ŶŽƌŵŝŶŐ͕ƐƚŽƌŵŝŶŐ͕
ĂŶĚƉĞƌĨŽƌŵŝŶŐ͘

Norming

Forming

Storming

Performing

dŚĞĮƌƐƚƐƚĞƉƚŽƵƐŝŶŐƚŚŝƐŵŽĚĞůŽĨƚĞĂŵĚĞǀĞůŽƉŵĞŶƚŝƐƌĞĐŽŐŶŝnjŝŶŐǁŚĂƚŵŽĚĞLJŽƵƌƚĞĂŵŝƐŝŶĂŶĚ
ǁŚĂƚLJŽƵĐĂŶĚŽƚŽŚĞůƉĨĂĐŝůŝƚĂƚĞŵŽǀĞŵĞŶƚƚŽǁĂƌĚƐƉĞƌĨŽƌŵŝŶŐ͘^ŽŵĞŵŽĚĞƐŵĂLJůĂƐƚůŽŶŐĞƌƚŚĂŶ
ŽƚŚĞƌƐ ĂŶĚ ƚĞĂŵƐ ƚŚĂƚ ĚŽ ŶŽƚ ĨƵŶĐƟŽŶ ǁĞůů ŵŝŐŚƚ ŶĞǀĞƌ ŵŽǀĞ ŽƵƚ ŽĨ ŶŽƌŵŝŶŐ Žƌ ƐƚŽƌŵŝŶŐ ĂŶĚ ŝŶƚŽ
ƉĞƌĨŽƌŵŝŶŐ͘

• Forming:dŚŝƐŝƐǁŚĞŶƚŚĞƚĞĂŵĮƌƐƚĐŽŵĞƐƚŽŐĞƚŚĞƌƚŽǁŽƌŬŽŶƚŚĞƉƌŽũĞĐƚ͘/ƚŝƐĂƚƚŚŝƐƉŽŝŶƚ
ƚŚĂƚƚĞĂŵŵĞŵďĞƌƐďĞŐŝŶƚŽĚĞǀĞůŽƉŝŵƉƌĞƐƐŝŽŶƐĂďŽƵƚĞĂĐŚŽƚŚĞƌĂŶĚŚƚĞƉƌŽũĞĐƚƚŚĂƚƚŚĞLJǁŝůů
ďĞǁŽƌŬŝŶŐŽŶ͘ƐĂůĞĂĚĞƌ͕ĨĂĐŝůŝƚĂƚĞŝŶƚƌŽĚƵĐƟŽŶƐĂŶĚĞŶĐŽƵƌĂŐĞƚĞĂŵŵĂƚĞƐƚŽƚĂůŬĂďŽƵƚǁŚŽ
ƚŚĞLJĂƌĞĂŶĚǁŚĂƚƚŚĞLJĂƌĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͘WůĂLJŐĂŵĞƐĂŶĚŚĂŶŐŽƵƚŝŶŝŶĨŽƌŵĂůƐĞƫŶŐƐ͘^ŚĂƌĞ
ŬŶŽǁůĞĚŐĞĂďŽƵƚƚŚŝƐŵŽĚĞůǁŝƚŚLJŽƵƌƚĞĂŵƐŽƚŚĞLJĐĂŶƉĂƌƟĐŝƉĂƚĞŝŶƚŚĞƚĞĂŵĚĞǀĞůŽƉŵĞŶƚ
ƉƌŽĐĞƐƐ͘
• Norming:dŚĞƚĞĂŵďĞŐŝŶƐƚŽĚĞǀĞůŽƉĂĐƵůƚƵƌĞĂŶĚƌŚLJƚŚŵ͘,ĂǀĞĂĨŽƌŵĂůĚŝƐĐƵƐƐŝŽŶǁŝƚŚLJŽƵƌ
ƚĞĂŵŵĂƚĞƐĂďŽƵƚǁŚĂƚĞĂĐŚŽĨLJŽƵǁĂŶƚƚŽŐĞƚŽƵƚŽĨƐƚĂƌƟŶŐƚŚŝƐďƵƐŝŶĞƐƐĂŶĚĚĞǀĞůŽƉĂůŝƐƚ
ŽĨ ĐŽƌĞ ĐŽŵŵŝƚŵĞŶƚƐ ƚŽ LJŽƵƌƐĞůǀĞƐ͕ ĞĂĐŚŽƚŚĞƌ͕ ĂŶĚ ƚŽ ƚŚĞ ĐŽŵŵƵŶŝƚLJ LJŽƵƌ ďƵƐŝŶĞƐƐ ƐĞƌǀĞƐ͘
ĞǀĞůŽƉƐƉĞĐŝĮĐĂĐƟŽŶĂďůĞǁĂLJƐŝŶǁŚŝĐŚLJŽƵƌƚĞĂŵĐĂŶĨƵůĮůůƚŚŽƐĞĐŽŵŵŝƚŵĞŶƚƐ͘/ƚĐĂŶďĞ
ŚĞůƉĨƵůƚŽĚĞǀĞůŽƉĂƉůĂŶĨŽƌǁŚĂƚƚŽĚŽǁŚĞŶĨĞĞůůŝŬĞLJŽƵĂƌĞŶŽƚĨƵůĮůůŝŶŐƚŚĞĐŽŵŵŝƚŵĞŶƚƐ͘

134 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

 • Storming:ƐƚĞĂŵƐďĞŐŝŶƚŽĚŝŐĚĞĞƉĞƌŝŶƚŽƚŚĞƚĂƐŬƚŚĞLJĂƌĞƚƌLJŝŶŐƚŽĐŽŵƉůĞƚĞ͕ŵĞŵďĞƌƐǁŝůů
ďƌŝŶŐĚŝīĞƌĞŶƚŝĚĞĂƐƚŽƚŚĞƚĂďůĞĂŶĚŵƵƐƚĐŽŶĨƌŽŶƚƚŚĞĚŝƐĂŐƌĞĞŵĞŶƚ^ŽŵĞƟŵĞƐƐƚŽƌŵŝŶŐĐĂŶ
ďĞƌĞƐŽůǀĞĚƋƵŝĐŬůLJǁŚŝůĞŽƚŚĞƌƟŵĞƐƚĞĂŵƐĂƌĞƵŶĂďůĞƚŽŵŽǀĞŽƵƚŽĨƚŚŝƐŵŽĚĞ͘dŽůĞƌĂŶĐĞĂŶĚ
ƵŶĚĞƌƐƚĂŶĚŝŶŐŝƐŬĞLJ͘ZĞůLJŽŶƚŚĞĨŽƵŶĚĂƟŽŶLJŽƵŚĂǀĞƐĞƚŝŶĨŽƌŵŝŶŐĂŶĚŶŽƌŵŝŶŐďLJƌĞǀŝƐŝƟŶŐ
LJŽƵƌĐŽŵŵŝƚŵĞŶƚƐƚŽƐĞĞŝĨƚŚĞLJƐƟůůŚŽůĚƵƉŽƌŝĨƚŚĞLJŶĞĞĚƚŽďĞĂĚũƵƐƚĞĚ͘ZĞĐŽŐŶŝnjĞƚŚĂƚƚŚŝƐ
ŝƐĂŵŽĚĞĂŶĚƚŚĂƚŝƚŝƐŶĞĐĞƐƐĂƌLJďƵƚƚŚĂƚŝƚŝƐĂůƐŽŝŵƉŽƌƚĂŶƚƚŽŵŽǀĞƚŽǁĂƌĚƐƉĞƌĨŽƌŵŝŶŐ͘
• Performing:dĞĂŵƐƚŚĂƚǁŽƌŬǁĞůůƚŽŐĞƚŚĞƌĐĂŶƌĞĂĐŚĂƟŵĞǁŚĞŶƚŚĞLJĂƌĞƚƌƵůLJƉĞƌĨŽƌŵŝŶŐ͘
dŚŝƐ ŵĞĂŶƐ ƚŚĞLJ ĂƌĞ ĂďůĞ ƚŽ ĨƵŶĐƟŽŶ ĂƐ Ă ƚĞĂŵ ĂŶĚ ĮŶĚ ǁĂLJƐ ƚŽ ĐŽŵƉůĞƚĞ ƚĂƐŬƐ ĞīĞĐƟǀĞůLJ
ĂŶĚ ǁŝƚŚŽƵƚ ƚŽŽ ŵƵĐŚ ĐŽŶŇŝĐƚ͘ ŝǀĞƌƐŝƚLJ ŽĨ ŽƉŝŶŝŽŶŝŽŶ ĂŶĚ ĚŝƐĐƵƐƐŝŽŶ ŝƐ ĂůǁĂLJƐ ŚĞĂůƚŚLJ ďƵƚ
ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŚĂƚŝƚŝƐĂůǁĂLJƐĐŽŶƐƚƌƵĐƟǀĞ͘ƚƚŚŝƐƉŽŝŶƚ͕ƚĞĂŵŵĞŵďĞƌƐĂƌĞŬŶŽǁůĞĚŐĞĂďůĞ
ĂďŽƵƚƚŚĞŝƌŽǁŶƌŽůĞŽŶƚŚĞƚĞĂŵĂƐǁĞůůĂƐƚŚĞƌŽůĞƐŽĨŽƚŚĞƌƚĞĂŵŵĞŵďĞƌƐĂŶĚĂďůĞƚŽŬĞĞƉ
ƚŚĞŵƐĞůǀĞƐĂŶĚŽƚŚĞƌƐŵŽƟǀĂƚĞĚ͘ƐĂůĞĂĚĞƌ͕ŚĞůƉLJŽƵƌƚĞĂŵƌĞŇĞĐƚŽŶƚŚĞŝƌƉƌŽĐĞƐƐĂŶĚǁŚĂƚ
ŝƐǁŽƌŬŝŶŐ͘ǀĞŶŚŝŐŚͲƉĞƌĨŽƌŵŝŶŐƚĞĂŵƐŵĂLJŐŽďĂĐŬƚŽƐƚŽƌŵŝŶŐĂŶĚŶŽƌŵŝŶŐĂƐƚŚĞLJĂƌĞĨĂĐĞĚ
ǁŝƚŚŶĞǁĐŚĂůůĞŶŐĞƐŽƌĐŚĂŶŐŝŶŐĐŝƌĐƵŵƐƚĂŶĐĞƐƐƵĐŚĂƐĂĚĚŝŶŐĂŶĞǁŵĞŵďĞƌƚŽƚŚĞƚĞĂŵ͘

/Ĩ ƚŚŝƐ ŵŽĚĞů ŽĨ ƚĞĂŵ ĚĞǀĞůŽƉŵĞŶƚ ƐŚŽǁƐ ĂŶLJƚŚŝŶŐ͕ ŝƚ ŝƐ ƚŚĞ /ŵƉŽƌƚĂŶĐĞ ŽĨ ĐŽŵŵƵŶŝĐĂƟŽŶ ĂŶĚ
ĞƐƚĂďůŝƐŚŝŶŐƐŚĂƌĞĚĞdžƉĞĐƚĂƟŽŶƐǁŝƚŚŝŶƚŚĞƚĞĂŵ͘dŚŝƐŝƐŝŵƉŽƌƚĂŶƚƐŽƚŚĂƚǁŚĞŶLJŽƵĂƌĞŝŶƚŚĞƐƚŽƌŵŝŶŐ
ŵŽĚĞLJŽƵŚĂǀĞĂĐŽŵŵŽŶŐƌŽƵŶĚƚŽƌĞǀŝƐŝƚƚŚĂƚLJŽƵŚĂǀĞĂůůĂŐƌĞĞĚƵƉŽŶĂƚŽŶĞƉŽŝŶƚ͘,ĂǀŝŶŐŽƉĞŶ
ĐŽŵŵƵŶŝĐĂƟŽŶĂŶĚĐŽŶƐƚĂŶƚůLJƐĞƫŶŐĞdžƉĞĐƚĂƟŽŶƐĂŶĚƌĞǀŝƐŝƟŶŐƚŚŽƐĞĞdžƉĞĐƚĂƟŽŶƐĂůůŽǁƐŵĞŵďĞƌƐ
ŽĨƚŚĞƚĞĂŵƚŽĨĞĞůĞŶŐĂŐĞĚĂŶĚŵŽƟǀĂƚĞĚ͘KƉĞŶĐŽŵŵƵŶŝĐĂƟŽŶĂŶĚĐƌĞĂƟŶŐĂŶŽƉĞŶƚĞĂŵĐƵůƚƵƌĞŝƐ
ƚŚĞďĞƐƚǁĂLJƚŽƉƌĞǀĞŶƚďŽƚŚĨĂůůŽƵƚǁŝƚŚŝŶƚŚĞƚĞĂŵĂƐǁĞůůĂƐŬĞĞƉŝŶŐĞǀĞƌLJŽŶĞŽŶƚŚĞƚĞĂŵŚŽŶĞƐƚ͘

DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚĚĞĮŶŝƚĞůLJŶĞĞĚƐƚŽƐƚĂƌƚƚŚŝŶŬŝŶŐĂďŽƵƚŚŽǁƚŽďƵŝůĚƚŚŝĞƌƚĞĂŵ͘'ƌĂĐĞ
ĂŶĚ^ĂŵƐƚĂƌƚĞĚŽīďLJŚĞůƉŝŶŐƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚĞĂŵƚĂŬĞĂĨĞǁŵŝŶƵƚĞƐƚŽďƌĂŝŶƐƚŽƌŵ
ĞǀĞƌLJƚŚŝŶŐƚŚĂƚƚŚĞLJǁĂŶƚĞĚƚŽŐĞƚŽƵƚŽĨƚŚĞŝƌĞdžƉĞƌŝĞŶĐĞƐƚĂƌƟŶŐƚŚĞďƵƐŝŶĞƐƐ͘tŚĂƚƚŚĞLJĞdžƉĞĐƚĨƌŽŵ
ƚŚĞŵƐĞůǀĞƐĂƐǁĞůůĂƐǁŚĂƚƚŚĞLJĞdžƉĞĐƚĨƌŽŵĞĂĐŚŽƚŚĞƌ͘ƚƚŚŝƐƉŽŝŶƚďĞĐĂƵƐĞƚŚĞLJĂƌĞũƵƐƚĐŽůůĞĐƟŶŐ
ŝĚĞĂƐ͕ŶŽŝĚĞĂŝƐǁƌŽŶŐĂŶĚƚŚĞLJǁƌŽƚĞĚŽǁŶĞǀĞƌLJƚŚŝŶŐƚŚĂƚǁĂƐŽīĞƌĞĚŝŶƚŚĞĚŝƐĐƵƐƐŝŽŶ͘

Metropolis Trash Management

What do we expect of ourselves and eachother?

Always think
about ways to
other do
chother e with each
what we do ev
Trust ea Communicat
en better
Listen to eachother
and
practice empathy
Bring energy and a positive e
al f r om t h
outlook or ste
b or r ow
Work to make the world a Don’t
C om e ss
better place prepar
ed to t busine
meetin eam
gs

Have fun!
y
Be ethical and sociall Be open-min
sib le ded and don’
respon dismiss each t immediately
Treat others other’s ideas
in the way
you would wa
nt to be
treated
Create an environme
nt where we can be Do your share of the work and
honest and open with
eachother do it on time
Be okay with
ambiguity and
Be realistic but dream uncertainty
big

r your Give back to th

nsibility fo e
po
Take res hother community
ct eac
a cti on s Respe
Ask questions

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 135

 ŌĞƌĐĂƉƚƵƌŝŶŐĞǀĞƌLJŽŶĞ͛ƐŝĚĞĂƐ͕ƚŚĞƚĞĂŵƌĞĂůŝnjĞĚƚŚĂƚŵĂŶLJŽĨƚŚĞŝĚĞĂƐǁĞƌĞǀĞƌLJƐŝŵŝůĂƌĂŶĚĐŽƵůĚ
ďĞĐĂƚĞŐŽƌŝnjĞĚĂŶĚĐŽŶƐŽůŝĚĂƚĞĚ͘'ƌĂĐĞĂŶĚ^ĂŵĞŚĞůƉĞĚƚŚĞƚĞĂŵƐŽƌƚĞĚƚŚƌŽƵŐŚĂůůƚŚĞŝƌŝĚĞĂƐĂŶĚ
ƌĞĮŶĞĚƚŚĞŵŝŶƚŽƚŚƌĞĞŵĂŝŶŝĚĞĂƐƚŚĂƚĞǀĞƌLJŽŶĞŽŶƚŚĞƚĞĂŵǁĂƐĞdžĐŝƚĞĚƚŽĐŽŵŵŝƚƚŽ͘

Metropolis Trash Management

Core Commitments

Our team agrees to the following core commitments to ourselves, to eachother, and to
the community our business serves.

Empower eachother to be the best we can be

individually and as a team.
We will strive to be leaders in our community as we continually grow in
knowledge and skill and embrace challenges. We will create a team culture
full of positive energy, communication, and honesty. We will always act with
conscience and no regrets.

Make our community a better place.

We will create solutions to real needs in our community. We will strive to
make these solutions self-sustaining and long-term.

Constantly learn and innovate.

We will listen to our community to deeply understand their needs and
always think about new solutions. We will embrace opportunities to
learn from our own experiences, from eachother, and from others in our
community.

If at any point someone on our team feels that we are not upholding these
commitments, it is necessary that the team member take action by bringing it to the
attention of the other members of the team.

KŶĐĞ ƚŚĞ DĞƚƌŽƉŽůŝƐ dƌĂƐŚ DĂŶĂŐĞŵĞŶƚ ƚĞĂŵ ĐƌĞĂƚĞĚ ƚŚĞŝƌ ůŝƐƚ ŽĨ ĐŽŵŵŝƚŵĞŶƚƐ͕ ^Ăŵ ĂŶĚ 'ƌĂĐĞ
ƐƵŐŐĞƐƚĞĚ ƚŚĂƚ ƚŚĞLJ ŶŽǁ ďƌĂŝŶƐƚŽƌŵ ǁĂLJƐ ŝŶ ǁŚŝĐŚ ƚŚĞLJ ĐĂŶ ĂĐƟǀĞůLJ ǁŽƌŬ ƚŽǁĂƌĚƐ ĨƵůĮůůŝŶŐ ƚŚŽƐĞ
ĐŽŵŵŝƚŵĞŶƚƐ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽŶŽƚŽŶůLJĚĞǀĞůŽƉĐŽŵŵŝƚŵĞŶƚƐƚŚĂƚĞǀĞƌLJŽŶĞĐĂŶĂŐƌĞĞŽŶ͕ďƵƚĂůƐŽ
ƚŽƉƵƚƚŚŽƐĞĐŽŵŵŝƚŵĞŶƚƐŝŶƚŽĂĐƟŽŶƐŽƚŚĂƚƚŚĞLJĂƌĞŶŽƚũƵƐƚƐŽŵĞƚŚŝŶŐƚŚĂƚŝƐŽŶƉĂƉĞƌĂŶĚŶĞǀĞƌ
ƚŚŽƵŐŚƚĂďŽƵƚĂŐĂŝŶ͘

136 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

 Metropolis Trash Management
How can we act on our Core Commitments?

Empower eachother to be the best we can be

individually and as a team.
Take time to develop team culture by having fun together in our free time.

Take time to do talk about our behavioral styles and our team process.

Hang the list of Core Commitments on the wall whenever we have meetings as a
reminder of our agreement.

Make our community a better place.

Find ways to give back to the community by going into schools and giving workshops on
how to sort and dispose of trash properly. Sponsor awareness campaigns about the
issue of littering.

Constantly learn and innovate.

Meet with customers after they have participated in our services and ask how well
we are meeting their needs. Meet with people who have chosen not to pay for our
services and ask why. Improve our services based on their feedback.

Do research on other waste management services in our community and in similar

communities around the world.

Set up monthly brainstorming sessions where we meet and talk about what is
working and what we can do better.

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 137

 Exercise 8.6: Core Commitments
/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ďƌĂŝŶƐƚŽƌŵĞǀĞƌLJƚŚŝŶŐƚŚĂƚLJŽƵ;ĂŶĚLJŽƵƌƚĞĂŵͿĞdžƉĞĐƚĨƌŽŵLJŽƵƌƐĞůĨ;ĂŶĚ
ĨƌŽŵĞĂĐŚŽƚŚĞƌ͘ͿĞƐƉĞĐŝĮĐĂŶĚƌĞŵĞŵďĞƌƚŚĂƚĂƚƚŚŝƐƉŽŝŶƚƚŚĞƌĞĂƌĞŶŽďĂĚŝĚĞĂƐ͘

138 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

ŌĞƌ ĐĂƉƚƵƌŝŶŐ ĞǀĞƌLJŽŶĞ͛Ɛ ŝĚĞĂƐ͕ ĐĂƚĞŐŽƌŝnjĞ ĂŶĚ ĐŽŶƐŽůŝĚĂƚĞ LJŽƵƌ ŝĚĞĂƐ ŝŶƚŽ LJŽƵƌ ĐŽƌĞ
ĐŽŵŵŝƚŵĞŶƚƐƚŽLJŽƵƌƐĞůĨ͕ƚŽĞĂĐŚŽƚŚĞƌ;ŝĨLJŽƵŚĂǀĞĂƚĞĂŵͿ͕ĂŶĚƚŽƚŚĞĐŽŵŵƵŶŝƚLJLJŽƵƌďƵƐŝŶĞƐƐ
ƐĞƌǀĞƐ͘ /Ĩ LJŽƵ ĂƌĞ ĐƌĞĂƟŶŐ ƚŚŝƐ ůŝƐƚ ǁŝƚŚ Ă ƚĞĂŵ ŵĂŬĞ ƐƵƌĞ ĞǀĞƌLJŽŶĞ ĂŐƌĞĞƐ ƚŽ ƚŚĞ ĮŶĂů ůŝƐƚ ŽĨ
ĐŽŵŵŝƚŵĞŶƚƐ͘

ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 139

 EŽǁƚŚĂƚLJŽƵŚĂǀĞĂůŝƐƚŽĨĐŽŵŵŝƚŵĞŶƚƐ͕ŝƚŝƐƟŵĞƚŽďƌĂŝŶƐƚŽƌŵǁĂLJƐƚŽĂĐƟǀĞůLJǁŽƌŬƚŽǁĂƌĚƐ
ĨƵůĮůůŝŶŐƚŚŽƐĞĐŽŵŵŝƚŵĞŶƚƐ͘KŶĐĞLJŽƵĐƌĞĂƚĞƚŚĞůŝƐƚ͕ĐŝƌĐůĞƚŚĞŝĚĞĂƐƚŚĂƚLJŽƵĂŐƌĞĞƚŽƉƵƚŝŶƚŽ
ĂĐƟŽŶ͘

Your Business Plan

KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Exercise 8.6͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞĂ
ƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůŽǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗

KƉĞƌĂƟŽŶƐWůĂŶ͗
ŽƌĞŽŵŵŝƚŵĞŶƚƐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐ
ƚŚĞĐŽƌĞĐŽŵŵŝƚŵĞŶƚƐƚŽ
LJŽƵƌƐĞůĨ͕ĞĂĐŚŽƚŚĞƌ͕ĂŶĚƚŚĞ
ĐŽŵŵƵŶŝƚLJLJŽƵƌďƵƐŝŶĞƐƐ
ƐĞƌǀĞƐ͘

140 | Planning | ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ

 ZĞŇĞĐƟŽŶ͗ KƉĞƌĂƟŶŐLJŽƵƌƵƐŝŶĞƐƐ
hƐĞ ƚŚŝƐ ƐƉĂĐĞ ƚŽ ƌĞŇĞĐƚ ŽŶ ƚŚĞ ĚĞĐŝƐŝŽŶƐ LJŽƵ ŚĂǀĞ ŵĂĚĞ ĂďŽƵƚ LJŽƵƌ ďƵƐŝŶĞƐƐ͛Ɛ ŽƉĞƌĂƟŽŶƐ͘
/ŶĐůƵĚĞŚŽǁLJŽƵƚŚŝŶŬƚŚŝƐǁŝůůĞīĞĐƚŽƌĐŚĂŶŐĞĂŶLJŽĨƚŚĞĐŚŽŝĐĞƐLJŽƵŵĂĚĞǁŚĞŶĚĞǀĞůŽƉŝŶŐ
LJŽƵƌŵĂƌŬĞƟŶŐƉůĂŶ͘

_______________________________________
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_______________________________________ ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
_______________________________________ ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
_______________________________________ ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
_______________________________________ ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘

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ĞǀĞůŽƉŝŶŐĂŶKƉĞƌĂƟŽŶƐWůĂŶ | Planning | 141

>> Using
Accounting
as a Tool

9
tŚLJŝƐĐĐŽƵŶƟŶŐ/ŵƉŽƌƚĂŶƚ
tŚĂƚŝƐĐĐŽƵŶƟŶŐďŽƵƚ͍
dŚĞDĞĐŚĂŶŝĐƐŽĨĐĐŽƵŶƟŶŐ
>ŽŽŬŝŶŐƚŽƚŚĞ&ƵƚƵƌĞ
/ŶƚŚŝƐĐŚĂƉƚĞƌ͕LJŽƵǁŝůůůĞĂƌŶŚŽǁƚŽƌĞĐŽƌĚ͕ŽƌŐĂŶŝnjĞ͕ƌĞƉŽƌƚ͕ĂŶĚĂŶĂůLJnjĞLJŽƵƌďƵƐŝŶĞƐƐ͛Ɛ
ĮŶĂŶĐŝĂů ŝŶĨŽƌŵĂƟŽŶ͘ /Ŷ ƚŚŝƐ ĐŚĂƉƚĞƌ͕ LJŽƵ ǁŝůů ůĞĂƌŶ ĂďŽƵƚ ƚŚĞ ĂĐĐŽƵŶƟŶŐ ƉƌŽĐĞƐƐ͕ ŚŽǁ
ĂĐĐŽƵŶƟŶŐ ŝŶĨŽƌŵĂƟŽŶ ŝƐ ĐŽŵŵƵŶŝĐĂƚĞĚ ƚŽ LJŽƵ ĂŶĚ ŽƚŚĞƌ ŝŶƚĞƌĞƐƚĞĚ ƉĞƌƐŽŶƐ ƚŚƌŽƵŐŚ
ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ĂŶĚ ŚŽǁ ƚŽ ͞ƐĞĞ ŝŶƚŽ ƚŚĞ ĨƵƚƵƌĞ ŽĨ LJŽƵƌ ďƵƐŝŶĞƐƐ͟ ƵƐŝŶŐ ĂĐĐŽƵŶƟŶŐ
ƉƌŽũĞĐƟŽŶƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

dƌĂŶƐĂĐƟŽŶ͗ďƵLJŝŶŐ͕ƐĞůůŝŶŐ͕Žƌ
ƚƌĂĚŝŶŐƐŽŵĞƚŚŝŶŐĨŽƌŐŽŽĚƐ͕
ƐĞƌǀŝĐĞƐ͕ŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐŝŶĂ
ďƵƐŝŶĞƐƐĚĞĂů͘dƌĂŶƐĂĐƟŽŶƐŽŌĞŶ
ĚĞĂůǁŝƚŚŵŽŶĞLJŇŽǁŝŶŐŝŶƚŽĂŶĚ
ŽƵƚŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘
T-account:ĂƚŽŽůƚŚĂƚ͕ǁŚĞŶĚƌĂǁŶ͕
ůŽŽŬƐůŝŬĞĂ͞d͟ĂŶĚŝƐƵƐĞĚƚŽŚĞůƉ
ƐĞƉĂƌĂƚĞĂŶĚŬĞĞƉƚƌĂĐŬŽĨLJŽƵƌ
ĂĐĐŽƵŶƟŶŐƚƌĂŶƐĂĐƟŽŶƐ͘ĂĐŚ
dͲĂĐĐŽƵŶƚŚĂƐĂŶĂĐĐŽƵŶƚƟƚůĞ͕ƚǁŽ
ƐŝĚĞƐ;нĂŶĚͲͿ͕ĂŶĚĂŵŽƵŶƚƐĨŽƌ
ĂŶLJƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚŝŶĐƌĞĂƐĞŽƌ
ĚĞĐƌĞĂƐĞƚŚĂƚĂĐĐŽƵŶƚ͘
Assets:ƌĞƐŽƵƌĐĞƐLJŽƵƌďƵƐŝŶĞƐƐ
ĐŽŶƚƌŽůƐĂŶĚŽǁŶƐƚŽĐƌĞĂƚĞǀĂůƵĞ
ĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͘ƐƐĞƚƐĐĂŶďĞ
͞ƚĂŶŐŝďůĞ͟;ĐĂŶďĞƐĞĞŶ͕ƚŽƵĐŚĞĚ͕
ĞƚĐ͘ͿŽƌ͞ŝŶƚĂŶŐŝďůĞ͟;ŶŽƚǀŝƐŝďůĞ͕ŶŽƚ
ƚŽƵĐŚĂďůĞ͕ĞƚĐ͘Ϳ
>ŝĂďŝůŝƟĞƐ͗ŵŽŶĞLJLJŽƵƌďƵƐŝŶĞƐƐ
ŽǁĞƐƚŽƉĞŽƉůĞ͕ŽƌŐĂŶŝnjĂƟŽŶƐ͕Žƌ
ŽƚŚĞƌďƵƐŝŶĞƐƐĞƐ͘
ƋƵŝƚLJ͗ƚŚĞŽǁŶĞƌƐŚŝƉŝŶƚĞƌĞƐƚ
ŝŶLJŽƵƌďƵƐŝŶĞƐƐ͘ƋƵŝƚLJĐĂŶ
ĐŽŵĞĨƌŽŵŵŽŶĞLJLJŽƵŽƌŽƚŚĞƌƐ
ĐŽŶƚƌŝďƵƚĞƚŽƚŚĞďƵƐŝŶĞƐƐ͕ŽƌĨƌŽŵ
ƉƌŽĮƚƐƚŚĂƚĂƌĞƌĞͲŝŶǀĞƐƚĞĚŝŶƚŽLJŽƵƌ
ďƵƐŝŶĞƐƐ͘
Financial Statements:ƌĞƉŽƌƚƐ
ƚŚĂƚƐŚŽǁLJŽƵƌďƵƐŝŶĞƐƐ͛ĮŶĂŶĐŝĂů
ŚĞĂůƚŚ͖ƚǁŽŽĨƚŚĞŵŽƐƚĐŽŵŵŽŶ
ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƚŚĞĂůĂŶĐĞ
^ŚĞĞƚĂŶĚƚŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͘
dŚĞĂůĂŶĐĞ^ŚĞĞƚƐŚŽǁƐƚŚĞ
ĂƐƐĞƚƐ͕ůŝĂďŝůŝƟĞƐĂŶĚĞƋƵŝƚLJŽĨLJŽƵƌ
ďƵƐŝŶĞƐƐŽŶĂƐƉĞĐŝĮĐĚĂƚĞ͘dŚĞ
/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚƐŚŽǁƐŚŽǁ
ƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐǁĂƐŽǀĞƌĂ
ƉĞƌŝŽĚŽĨƟŵĞ͘
 Lesson 9.1: tŚLJŝƐĐĐŽƵŶƟŶŐ/ŵƉŽƌƚĂŶƚ
ĐĐŽƵŶƟŶŐŝƐŽŌĞŶĐĂůůĞĚ͞ƚŚĞůĂŶŐƵĂŐĞŽĨďƵƐŝŶĞƐƐ͕͟ďĞĐĂƵƐĞŝƚŝƐƚŚĞǁĂLJƚŚĂƚLJŽƵĐĂŶĐŽŵŵƵŶŝĐĂƚĞƚŽ
ŽƚŚĞƌƐƚŚĞƌĞƐƵůƚƐŽĨLJŽƵƌŽƉĞƌĂƟŽŶƐ͘tŝƚŚŽƵƚĂĐĐŽƵŶƟŶŐ͕ŝƚǁŽƵůĚďĞĚŝĸĐƵůƚĨŽƌLJŽƵŽƌŽƚŚĞƌƐƚŽƐĞĞ
ƚŚĞĮŶĂŶĐŝĂůŚĞĂůƚŚŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘ĐĐŽƵŶƟŶŐŝƐƚŚĞƉƌŽĐĞƐƐŽĨƌĞĐŽƌĚŝŶŐĂŶĚŽƌŐĂŶŝnjŝŶŐƚƌĂŶƐĂĐƟŽŶƐ
ƚŽƚƌĂĐŬŵŽŶĞLJĞĂƌŶĞĚĂŶĚƐƉĞŶƚ͕ƌĞƉŽƌƟŶŐƚŚĞŝŶĨŽƌŵĂƟŽŶƚŽLJŽƵƌƐĞůĨ͕ůĞŶĚĞƌƐ͕ŝŶǀĞƐƚŽƌƐ͕ƐƵƉƉůŝĞƌƐ͕
ĂŶĚŽƚŚĞƌƐĂŶĚĂŶĂůLJnjŝŶŐƚŚĞĮŶĂŶĐŝĂůŝŶĨŽƌŵĂƟŽŶƚŽŵĂŬĞǁŝƐĞĚĞĐŝƐŝŽŶƐ͘
zŽƵ͕ĂƐƚŚĞďƵƐŝŶĞƐƐŽǁŶĞƌ͕LJŽƵŶĞĞĚƚŽŬŶŽǁŚŽǁLJŽƵƌďƵƐŝŶĞƐƐŝƐŽƉĞƌĂƟŶŐĂŶĚĂĐĐŽƵŶƟŶŐǁŝůůƉƌŽǀŝĚĞ
LJŽƵƚŚĂƚŝŶĨŽƌŵĂƟŽŶ͘DĂŶLJŽƚŚĞƌŝŶĚŝǀŝĚƵĂůƐĂŶĚŝŶƐƟƚƵƟŽŶƐŵĂLJǁĂŶƚĂĐĐŽƵŶƟŶŐŝŶĨŽƌŵĂƟŽŶƚŽŽ͘
WŽƚĞŶƟĂůƐƵƉƉŽƌƚĞƌƐǁŚŽŵĂLJďĞŝŶƚĞƌĞƐƚĞĚŝŶLJŽƵƌďƵƐŝŶĞƐƐĂŶĚĐŽƵůĚƉƌŽǀŝĚĞLJŽƵǁŝƚŚƌĞƐŽƵƌĐĞƐŵĂLJ
ǁĂŶƚLJŽƵƌĂĐĐŽƵŶƟŶŐŝŶĨŽƌŵĂƟŽŶƚŽŚĞůƉƚŚĞŵůĞĂƌŶĂďŽƵƚLJŽƵƌďƵƐŝŶĞƐƐ͘dŚŝƐĐŽƵůĚďĞďĂŶŬƐ͕ŽƚŚĞƌ
ŬŝŶĚŽĨůĞŶĚĞƌƐŽƌŝŶǀĞƐƚŽƌƐǁŚŽŽǁŶƐƚŽĐŬŝŶLJŽƵƌĐŽŵƉĂŶLJ͘'ŽǀĞƌŶŵĞŶƚƐǁĂŶƚĂĐĐŽƵŶƟŶŐŝŶĨŽƌŵĂƟŽŶ
ĨŽƌƚĂdžƌĞĂƐŽŶƐ͕ĨŽƌůĞŐŝƐƚůĂƟǀĞĂŶĚůĞŐĂůƌĞĂƐŽŶƐĂŶĚŽƚŚĞƌŝŶŝƟĂƟǀĞƐƌĞůĂƚĞĚƚŽLJŽƵƌďƵƐŝŶĞƐƐ͛ƐŝŵƉĂĐƚ
ŽŶƚŚĞĮŶĂŶĐŝĂů͕ƐŽĐŝĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůĐŽŵŵƵŶŝƚLJ͘ŶĚĮŶĂůůLJ͕ƚŚĞƉƵďůŝĐĂƐĂǁŚŽůĞŵĂLJǁĂŶƚLJŽƵƌ
ĂĐĐŽƵŶƟŶŐŝŶĨŽŵƌĂƟŽŶďĞĐĂƵƐĞƚŚĞLJĂƌĞLJŽƵƌĐƵƐƚŽŵĞƌƐ͕ƚŚĞLJĂƌĞLJŽƵƌĞŵƉůŽLJĞĞƐĂŶĚLJŽƵƌďƵƐŝŶĞƐƐ
ĞīĞĐƚƐƚŚĞĞŶƟƌĞĐŽŵŵƵŶŝƚLJĂƌŽƵŶĚLJŽƵ͘dŚĞŐĞŶĞƌĂůƉƵďůŝĐǁŝůůďĞŝŶƚĞƌĞƐƚĞĚŝŶŬŶŽǁŝŶŐǁŚĂƚLJŽƵĂƌĞ
ĚŽŝŶŐĂŶĚŚŽǁLJŽƵĂƌĞĐŽŶƚƌŝďƵƟŶŐƚŽƚŚĞĐŽŵŵƵŶŝƚLJ͘

ůůŽĨƚŚĞƐĞŐƌŽƵƉƐ͕ŶĞĞĚŽƌǁĂŶƚƚŚŝƐŝŶĨŽƌŵĂƟŽŶƚŚĂƚĐĂŶďĞƉƌŽǀŝĚĞĚĨƌŽŵĂĐĐŽƵŶƟŶŐ͘

Lesson 9.2: tŚĂƚŝƐĐĐŽƵŶƟŶŐďŽƵƚ͍

dŽƌƵŶĂďƵƐŝŶĞƐƐ͕LJŽƵŶĞĞĚƌĞƐŽƵƌĐĞƐ͘ĐĐŽƵŶƟŶŐƐŝŵƉůLJŬĞĞƉƐƚƌĂĐŬŽĨƚŚŽƐĞƌĞƐŽƵƌĐĞƐʹǁŚĞƌĞƚŚĞLJ
ĐŽŵĞĨƌŽŵĂŶĚŚŽǁƚŚĞLJĂƌĞƵƐĞĚ͘

tĞĐĂƉƚƵƌĞƚŚŝƐŝŶǁŚĂƚŝƐĐĂůůĞĚƚŚĞĐĐŽƵŶƟŶŐƋƵĂƟŽŶ͘dŚĞĂĐĐŽƵŶƟŶŐĞƋƵĂƟŽŶŝƐŵĂĚĞƵƉŽĨ
ƚŚƌĞĞƚLJƉĞƐŽĨƚƌĂŶƐĂĐƟŽŶŝƚĞŵƐʹƐƐĞƚƐ͕>ŝĂďŝůŝƟĞƐĂŶĚƋƵŝƚLJ͘

ƐƐĞƚƐĂƌĞƌĞƐŽƵƌĐĞƐƚŚĂƚLJŽƵƵƐĞƚŽƌƵŶLJŽƵƌďƵƐŝŶĞƐƐ͘dŚĞLJĐŽŵĞĨƌŽŵŽŶĞŽĨƚǁŽƐŽƵƌĐĞƐ͘KŶĞ
ƐŽƵƌĐĞŝƐĨƌŽŵŵŽŶĞLJƚŚĂƚLJŽƵďŽƌƌŽǁĨƌŽŵƚŚŽƐĞƐŽƵƌĐĞƐůŝŬĞďĂŶŬƐĂŶĚŽƚŚĞƌůĞŶĚĞƌƐǁŚŝĐŚĂƌĞ
ĐĂůůĞĚ͞>ŝĂďŝůŝƟĞƐ͟ďĞĐĂƵƐĞLJŽƵĂƌĞƌĞƋƵŝƌĞĚƚŽƉĂLJŝƚďĂĐŬ͘dŚĞŽƚŚĞƌƐŽƵƌĐĞĨŽƌŐĞŶĞƌĂƟŶŐƌĞƐŽƵƌĐĞƐ
ĂƌĞƚŚŝŶŐƐƚŚĂƚLJŽƵƉƵƚŝŶLJŽƵƌƐĞůĨŽƌŵŽŶĞLJƚŚĂƚƚŚĞďƵƐŝŶĞƐƐŵĂŬĞƐʹƉƌŽĮƚĨƌŽŵƐĂůĞƐŽĨƉƌŽĚƵĐƚ
ŽƌƐĞƌǀŝĐĞƐ͘dŚĞƐĞĂƌĞĐĂůůĞĚƋƵŝƚLJ͘zŽƵƌƌĞƐŽƵƌĐĞƐŚĂǀĞƚŽĐŽŵĞĨƌŽŵƐŽŵĞǁŚĞƌĞ͘dŚĞLJŵƵƐƚĐŽŵĞ
ĨƌŽŵ>ŝĂďŝůŝƚLJŽƌƋƵŝƚLJ͘dŚĞƌĞĨŽƌĞ͕ǁĞĞŶĚƵƉǁŝƚŚĂǀĞƌLJĨƵŶĚĂŵĞŶƚĂůƌĞůĂƟŽŶƐŚŝƉŚĞƌĞ͘ƐƐĞƚƐŚĂǀĞ
ƚŽĞƋƵĂůůŝĂďŝůŝƟĞƐĂŶĚĞƋƵŝƚLJďĞĐĂƵƐĞƚŚĞLJĂƌĞƚŚĞŽŶůLJƉŽƚĞŶƟĂůƐŽƵƌĐĞŽĨƌĞƐŽƵƌĐĞƐ͘

dŚĂƚŝƐƚŚĞĂĐĐŽƵŶƟŶŐĞƋƵĂƟŽŶƐ͕ƐƐĞƚƐс>ŝĂďŝůŝƟĞƐнƋƵŝƚLJ͘dŚŝƐǁŝůůŚĞůƉLJŽƵƚŽƵŶĚĞƌƐƚĂŶĚŵŽƐƚ
ĂĐĐŽƵŶƟŶŐƐƚĂƚĞŵĞŶƚƐĨƌŽŵLJŽƵƌŬĂŶĚĐŽŶĐĞƉƚƐĂƐǁĞŵŽǀĞĨŽƌǁĂƌĚ͘

ƐƐĞƚƐс>ŝĂďŝůŝƟĞƐнƋƵŝƚLJ

ǀĞƌLJƚƌĂŶƐĂĐƟŽŶŽĨLJŽƵƌďƵƐŝŶĞƐƐƌĞůĂƚĞƐƚŽƚŚĞĂĐĐŽƵŶƟŶŐĞƋƵĂƟŽŶĂŶĚŝƚŵƵƐƚĂůǁĂLJƐďĂůĂŶĐĞ͘
dŚĞ͞ƐƐĞƚƐ͟ƐŝĚĞƌĞƉƌĞƐĞŶƚƐƚŚĞƌĞƐŽƵƌĐĞƐLJŽƵƌďƵƐŝŶĞƐƐŽǁŶƐŽƌĐŽŶƚƌŽůƐ͘dŚĞ͞>ŝĂďŝůŝƟĞƐнƋƵŝƚLJ͟
ƐŝĚĞƌĞƉƌĞƐĞŶƚƐǁŚĞƌĞƚŚŽƐĞƌĞƐŽƵƌĐĞƐĐĂŵĞĨƌŽŵ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵŐŽƚŽĂďĂŶŬĂŶĚďŽƌƌŽǁΨϱϬϬ͕
LJŽƵƌĐĂƐŚ;ĂŶĂƐƐĞƚͿŝŶĐƌĞĂƐĞƐďLJΨϱϬϬ͘^ŽƚŽŽĚŽĞƐLJŽƵƌĚĞďƚ;ĂůŝĂďŝůŝƚLJͿďLJΨϱϬϬ͘>Ğƚ͛ƐĂůƐŽĂƐƐƵŵĞ
LJŽƵĐŽŶƚƌŝďƵƚĞΨϱϬϬƚŽLJŽƵƌďƵƐŝŶĞƐƐĨƌŽŵLJŽƵƌŽǁŶƐĂǀŝŶŐƐ͘dŚĞĞdžĂŵƉůĞďĞůŽǁŝůůƵƐƚƌĂƚĞƐŚŽǁƚŚĞ
ĐĐŽƵŶƟŶŐƋƵĂƟŽŶďĂůĂŶĐĞƐ͗

Ψϭ͕ϬϬϬсΨϱϬϬнΨϱϬϬ
;ĂƐŚͿ;ĞďƚͿ;zŽƵƌŽŶƚƌŝďƵƟŽŶͿ

dŚĞĂĐĐŽƵŶƟŶŐĞƋƵĂƟŽŶŝƐƚŚĞďĂƐŝĐĨŽƌŵŽƐƚĂĐĐŽƵŶƟŶŐƌĞƉŽƌƚƐ͘hŶĚĞƌƐƚĂŶĚŝŶŐƚŚŝƐĐŽŶĐĞƉƚ͕ǁŝůů
ŚĞůƉ LJŽƵ ƚŽ ƵŶĚĞƌƐƚĂŶĚ ŵŽƐƚ ĂĐĐŽƵŶƟŶŐ ƐƚĂƚĞŵĞŶƚƐ ĨƌŽŵ LJŽƵƌ Ŭ ĂŶĚ ĐŽŶĐĞƉƚƐ ĂƐ ǁĞ ŵŽǀĞ
ĨŽƌǁĂƌĚ͘

Using Accounting as a Tool | Planning | 145

 Lesson 9.3: DĞĐŚĂŶŝĐƐŽĨĐĐŽƵŶƟŶŐ
dŚĞ ŵĞĐŚĂŶŝĐƐ ŽĨ ĂĐĐŽƵŶƟŶŐ ŝŶǀŽůǀĞ ďĂƐŝĐĂůůLJ ƵŶĚĞƌƐƚĂŶĚŝŶŐ Ă ǁĂLJ ŽĨ ĐĂƉƚƵƌŝŶŐ ŝŶĨŽƌŵĂƟŽŶ ƚŚĂƚ
LJŽƵĐĂŶƵƐĞĐŽŶƐŝƐƚĞŶƚůLJĂŶĚƚŚĂƚĂůůŽǁƐLJŽƵĂŶĚŽƚŚĞƌƐƚŽĐŽŵƉĂƌĞŝŶĨŽƌŵĂƟŽŶĨƌŽŵŽŶĞĐŽŵƉĂŶLJ
ƚŽĂŶŽƚŚĞƌƐŽƚŚĂƚĞǀĞƌLJƚŚŝŶŐůŽŽŬƐďĂƐŝĐĂůůLJŝŶƚŚĞƐĂŵĞĨŽƌŵĂƚ͘^ŽŵĞŽĨƚŚĞŬĞLJƚŚŝŶŐƐƚŚĂƚLJŽƵ
ŶĞĞĚƚŽƵŶĚĞƌƐƚĂŶĚŝƐϭ͘dƌĂŶƐĂĐƟŽŶƐ͘dŚŝŶŬŽĨƐŽŵĞƚŚŝŶŐƚŚĂƚŝŶĐƌĞĂƐĞƐŽƌĚĞĐƌĞĂƐĞƐƚŚĞƌĞƐŽƵƌĐĞƐ
ŽĨLJŽƵƌĐŽŵƉĂŶLJĂƐĂƚƌĂŶƐĂĐƟŽŶ͘^ŽŵĞƚŚŝŶŐƚŚĂƚŚĂƐĂŶŝŵƉĂĐƚŽŶLJŽƵƌďƵƐŝŶĞƐƐ͕ĂŶĞdžĂŵƉůĞŽĨĂ
ƚƌĂŶƐĂĐƟŽŶŵŝŐŚƚďĞĂƐĂůĞƚŽĂĐƵƐƚŽŵĞƌʹĂƚƌĂŶƐĂĐƟŽŶƚŚĂƚŝŶĐƌĞĂƐĞƐLJŽƵƌƌĞƐŽƵƌĐĞƐ͘^ŽƚŚĞĮƌƐƚ
ƚŚŝŶŐƚŽƚŚŝŶŬĂďŽƵƚŝŶďƵŝůĚŝŶŐĂŶĂĐĐŽƵŶƟŶŐƐLJƐƚĞŵŝƐŚŽǁLJŽƵĂƌĞŐŽŝŶŐƚŽĐĂƉƚƵƌĞŝŶĨŽƌŵĂƟŽŶ
ĂďŽƵƚƚŚĞƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚŽĐĐƵƌ͘

dŚĞƐĞĐŽŶĚƚĞƌŵŝƐƚŚĂƚLJŽƵŶĞĞĚƚŽďĞĨĂŵŝůŝĂƌǁŝƚŚŝƐƚŚĞƚĞƌŵ͞ĂĐĐŽƵŶƚƐ͟ĐĐŽƵŶƚƐĂƌĞĂƐLJƐƚĞŵŽĨ
ŽƌŐĂŶŝnjŝŶŐƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚĂƌĞƐŝŵŝůĂƌƚŽĞĂĐŚŽƚŚĞƌƐŽƚŚĂƚLJŽƵĐĂŶƌĞĂĚŝůLJƐƵŵŵĂƌŝnjĞƚŚĞŵ͘/ŶLJŽƵƌ
ĂĐĐŽƵŶƟŶŐƐLJƐƚĞŵ͕LJŽƵǁŝůůĐƌĞĂƚĞĂŶĂĐĐŽƵŶƚĨŽƌƐŽŵĞƚŚŝŶŐůŝŬĞƐĂůĞƐ͕ŽŶĞŽĨLJŽƵƌƌĞƐŽƵƌĐĞƐ͘dŚĞ
ĂĐĐŽƵŶƚǁŝůůďĞĂǁĂLJƚŚĂƚLJŽƵĐĂŶƉƵƚĂůůŽĨƚŚĞƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚĂīĞĐƚLJŽƵƌƐĂůĞƐƚŽŐĞƚŚĞƌ͘
dŚĞƐƚĂŶĚĂƌĚǁŚĞŶLJŽƵĐƌĞĂƚĞĂŶĂĐĐŽƵŶƚƐƵĐŚĂƐƐĂůĞƐŝƐƚŽƐĞƚŝƚƵƉŝŶǁŚĂƚŝƐĐĂůůĞĚĂ͞dͲĐĐŽƵŶƚ͟
ƚŚŝƐ ŝƐ Ă ŵĞĐŚĂŶŝƐŵ ĨŽƌ ĐĂƉƚƵƌŝŶŐ ƚŚĞ ŝŶĐƌĞĂƐĞƐ ŝŶ ƚŚĞ ĂĐĐŽƵŶƚ ŽŶ ŽŶĞ ƐŝĚĞ͕ ĂŶĚ ĚĞĐƌĞĂƐĞƐ ŝŶ ƚŚĞ
ĂĐĐŽƵŶƚŽŶĂŶŽƚŚĞƌƐŽƚŚĂƚLJŽƵĐĂŶƌĞĂĚŝůLJƐĞĞǁŚĞƌĞƚŚŝŶŐƐĐĂŵĞĨƌŽŵĂŶĚǁŚĞƌĞƚŚĞLJǁĞŶƚ͘zŽƵ͛ůů
ŽŌĞŶĂůƐŽŚĞĂƌƚŚĞǁŽƌĚƐĞďŝƚĂŶĚĐƌĞĚŝƚǁŚĞŶǁĞƚĂůŬĂďŽƵƚĂĐĐŽƵŶƟŶŐƐLJƐƚĞŵƐ͘dŚĞƐĞĂƌĞƐŝŵƉůLJ
ǁŽƌĚƐƚŽŚĞůƉƐƚĂƚĞǁŚŝĐŚƐŝĚĞŽĨƚŚĞdͲĂĐĐŽƵŶƚƚƌĂŶƐĂĐƟŽŶƐĂƌĞďĞŝŶŐƌĞĐŽƌĚĞĚ͘ĚĞďŝƚŵĞĂŶƐƚŚĂƚ
ƚŚŝŶŐƐĂƌĞďĞŝŶŐƌĞĐŽƌĚĞĚŽŶƚŚĞůĞŌƐŝĚĞŽĨƚŚĞdͲĂĐĐŽƵŶƚĂŶĚĐƌĞĚŝƚŵĞĂŶƐƚŚĂƚŝƚŝƐďĞŝŶŐƌĞĐŽƌĚĞĚ
ŽŶƚŚĞƌŝŐŚƚƐŝĚĞŽĨƚŚĞdͲĂĐĐŽƵŶƚ͘

&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵŚĂǀĞĂdͲĂĐĐŽƵŶƚĨŽƌ&ĂŵŝůLJĐĂƐŚ͘zŽƵƉƵƚŝŶϮϬϬŽĨLJŽƵƌŽǁŶĐĂƐŚ͕ϭϬϬŽĨLJŽƵƌ
ĨĂŵŝůLJĐĂƐŚ͕ĂƐĂůĞŽĨϳϱĂŶĚĂŶĞdžƉĞŶƐĞŽĨϱϬ͕ƚŚĞŶƚŚĞdͲĂĐĐŽƵŶƚǁŽƵůĚůŽŽŬůŝŬĞƚŚŝƐ͗

&ĂŵŝůLJĂƐŚ
Ğďŝƚ;нͿ ƌĞĚŝƚ;ͲͿ
ϮϬϬ ϱϬ
100
ϳϱ

/ŶĨŽƌŵĂůĂĐĐŽƵŶƟŶŐ͕ƚŚĞŶĞdžƚƐƚĞƉŝƐƚŽƐƵŵŵĂƌŝnjĞĂůůŽĨƚŚĞĞŶƚƌŝĞƐƚŚĂƚĂƌĞŝŶLJŽƵƌdͲĂĐĐŽƵŶƚ͘tĞ
ŽŌĞŶĐĂůůƚŚŝƐĂŐĞŶĞƌĂůůĞĚŐĞƌǁŚĞƌĞǁĞƐƵŵŵĂƌŝnjĞĂůůŽĨLJŽƵƌĂĐĐŽƵŶƚƐ͘

146 | Planning | Using Accounting as a Tool

 Exercise 9.1: hŶĚĞƌƐƚĂŶĚŝŶŐDLJdƌĂŶƐĂĐƟŽŶƐ
tŚĂƚĂƌĞƐŽŵĞĐŽŵŵŽŶƚƌĂŶƐĂĐƟŽŶƐ ƚŚĂƚĂŶLJďƵƐŝŶĞƐƐ ǁŽƵůĚ ŶĞĞĚƚŽŬĞĞƉƚƌĂĐŬŽĨ͍dŚŝŶŬ
ďĂĐŬƚŽƚŚĞDĂƌŬĞƟŶŐĂŶĚKƉĞƌĂƟŽŶƐŚĂƉƚĞƌƐ͘

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tŚĂƚƚƌĂŶƐĂĐƟŽŶƐǁŝůůLJŽƵƌďƵƐŝŶĞƐƐŶĞĞĚƚŽŬĞĞƉƚƌĂĐŬŽĨ͍

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dŚĞŝůůƵƐƚƌĂƟŽŶďĞůŽǁƐŚŽǁƐƚŚƌĞĞdͲĂĐĐŽƵŶƚƐ͕ĂŶĚŚŽǁƚŚĞLJĮƚŝŶƚŽƚŚĞĐĐŽƵŶƟŶŐƋƵĂƟŽŶ͘
&ŽƌƉƌĂĐƟĐĞ͕ƌĞĐŽƌĚƚŚĞƚƌĂŶƐĂĐƟŽŶƐŵĞŶƟŽŶĞĚƉƌĞǀŝŽƵƐůLJŝŶƚŚĞĂƉƉƌŽƉƌŝĂƚĞdͲĂĐĐŽƵŶƚƐ;LJŽƵ
ďŽƌƌŽǁΨϱϬϬĨƌŽŵƚŚĞďĂŶŬ͕ĂŶĚĐŽŶƚƌŝďƵƚĞΨϱϬϬĨƌŽŵLJŽƵƌŽǁŶƐĂǀŝŶŐƐ͕ďŽƚŚŝŶĐĂƐŚͿ͘

Assets с >ŝĂďŝůŝƟĞƐ н ƋƵŝƚLJ

Cash >ŽŶŐͲdĞƌŵĞďƚ ŽŶƚƌŝďƵƚĞĚĂƉŝƚĂů
Ğďŝƚ;нͿ ƌĞĚŝƚ;ͲͿ Ğďŝƚ;ͲͿ ƌĞĚŝƚ;нͿ Ğďŝƚ;ͲͿ ƌĞĚŝƚ;нͿ

Using Accounting as a Tool | Planning | 147

 dŚĞƌĞĂƌĞŵĂŶLJƚŚŝŶŐƐƚŚĂƚƚŚĞĚŝīĞƌĞŶƚĂƵĚŝĞŶĐĞƐŵĂLJǁĂŶƚƚŽŬŶŽǁĂďŽƵƚLJŽƵƌďƵƐŝŶĞƐƐĂŶĚƚŚĞƌĞĂƌĞ
ƐƚĂŶĚĂƌĚŵĞƚŚŽĚƐŽĨƐŚĂƌŝŶŐƚŚĞŝŶĨŽƌŵĂƟŽŶƚŚĞLJĐŽŵŵŽŶůLJǁĂŶƚ͘͘dŚĞĨŽůůŽǁŝŶŐĂƌĞƚŚĞďĂƐŝĐƌĞƉŽƌƚƐ
ƚŚĂƚŵĂLJďĞĂƐŬĞĚŽĨLJŽƵ͗ƚŚĞďĂůĂŶĐĞƐŚĞĞƚ͕ƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͕ƚŚĞĐĂƐŚŇŽǁƐƐƚĂƚĞŵĞŶƚĂŶĚ͕ǁŚĞŶ
LJŽƵ͛ƌĞĮƌƐƚƐƚĂƌƟŶŐŽƵƚ͕ƚŚĞ^ĐŚĞĚƵůĞŽĨƐƚĂƌƚƵƉĐŽƐƚƐ͘

The Balance Sheet

WĞŽƉůĞǁĂŶƚƚŽŬŶŽǁǁŚĂƚLJŽƵŽǁĞĂŶĚǁŚĂƚLJŽƵŽǁŶĂƚĂŶLJŐŝǀĞŶƟŵĞ͘dŚŝŶŬŽĨƚŚŝƐĂƐƚĂŬŝŶŐĂƉŝĐƚƵƌĞ
ŽĨ LJŽƵƌ ďƵƐŝŶĞƐƐ͘ dŚĞ ƉŝĐƚƵƌĞ ŝƐ ŽŶĞ ƚŚĂƚ ǁŝůů ĐŽŶǀĞLJ ƚŽ ƐŽŵĞŽŶĞ ĞdžĂĐƚůLJ ǁŚĂƚ ŝƐ ŚĂƉƉĞŶŝŶŐ Ăƚ LJŽƵƌ
ďƵƐŝŶĞƐƐĂƚƚŚĞƟŵĞƚŚĂƚƚŚĞƉŝĐƚƵƌĞŝƐƚĂŬĞŶ͘^ŽǁŝƚŚĂĐĐŽƵŶƟŶŐ͕LJŽƵĂƌĞƚƌLJŝŶŐƚŽĐĂƉƚƵƌĞǁŚĂƚLJŽƵ
ŽǁŶĂŶĚǁŚĂƚLJŽƵŽǁĞĂŶĚLJŽƵĚŽƚŚĂƚǁŝƚŚĂƐƚĂƚĞŵĞŶƚĐĂůůĞĚƚŚĞĂůĂŶĐĞ^ŚĞĞƚ͘dŚĞĂůĂŶĐĞƐŚĞĞƚŝƐ
ƚŚĞƉŝĐƚƵƌĞŽĨǁŚĂƚĂĐŽŵƉĂŶLJŽǁĞƐĂŶĚŽǁŶƐĂƚĂƉĂƌƟĐƵůĂƌƉŽŝŶƚŝŶƟŵĞ͘

dŚĞĂůĂŶĐĞ^ŚĞĞƚƐŚŽǁƐƚŚĞĮŶĂŶĐŝĂůĐŽŶĚŝƟŽŶŽĨĂďƵƐŝŶĞƐƐĂƚĂƐƉĞĐŝĮĐƉŽŝŶƚŝŶƟŵĞ͘dŚĞĂůĂŶĐĞ
^ŚĞĞƚ ŝƐ ďĂƐŝĐĂůůLJ ƚŚĞ ĐĐŽƵŶƟŶŐ ƋƵĂƟŽŶ ;ƐƐĞƚƐ с >ŝĂďŝůŝƟĞƐ н ƋƵŝƚLJͿ͕ ŽŶůLJ ŵŽƌĞ ĚĞƚĂŝůĞĚ͘ dŚŝŶŬ
ĂďŽƵƚƚŚĞĞƋƵĂƟŽŶĂŶĚďĂůĂŶĐĞƐŚĞĞƚƚŚŝƐǁĂLJ͗ĂůůƚŚĞƌĞƐŽƵƌĐĞƐŽĨLJŽƵƌďƵƐŝŶĞƐƐŚĂǀĞƚŽĐŽŵĞĨƌŽŵ
ƐŽŵĞǁŚĞƌĞ͕ ƐŽ ƚŚĞ ƐƵŵŵĂƌLJ ŽĨ LJŽƵƌ ƌĞƐŽƵƌĐĞƐ ;ƚŚĞ ĂƐƐĞƚƐͿ ŵƵƐƚ ĞƋƵĂů ƚŚĞ ƐƵŵŵĂƌLJ ŽĨ ŚŽǁ LJŽƵ
ŽďƚĂŝŶĞĚƚŚŽƐĞƌĞƐŽƵƌĐĞƐ;ƚŚĞůŝĂďŝůŝƟĞƐƉůƵƐƚŚĞĞƋƵŝƚLJͿ͘dŚŝƐĐŽŶĐĞƉƚĞǀĞŶĂƉƉůŝĞƐƚŽŚƵŐĞĐŽŵƉĂŶŝĞƐ
ĂŶĚĞǀĞŶƚŚĞŝƌďĂůĂŶĐĞƐŚĞĞƚƐŵƵƐƚ;ĂŶĚĚŽͿďĂůĂŶĐĞ͊dŚŝƐŝƐǁŚLJŝƚŝƐĐĂůůĞĚƚŚĞ͞ďĂůĂŶĐĞ͟ƐŚĞĞƚ͘ĞůŽǁ
ŝƐĂďĂůĂŶĐĞƐŚĞĞƚĨŽƌDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚ͘

Metropolis Trash Management

Balance Sheet
Your Plan Assets с
As of December 31, 2012
>ŝĂďŝůŝƟĞƐ н KǁŶĞƌƐ͛ƋƵŝƚLJ
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
ƚŚŝƐĞdžĞƌĐŝƐĞ͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞ ĐĐŽƵŶƚƐ ŽŶƚƌŝďƵƚĞĚ
ĂƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůǁŝŶŐŝŶ Cash ΨϰϬϬ WĂLJĂďůĞ ΨϭϱϬ ĂƉŝƚĂů ΨϭϱϬ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗ >ŽŶŐͲdĞƌŵ ZĞƚĂŝŶĞĚ
ŽŵƉƵƚĞƌ ΨϯϬϬ Debt ΨϬ ĂƌŶŝŶŐƐ ΨϰϰϬ
WƌŽũĞĐƟŽŶƐ͗
ĂůĂŶĐĞ^ŚĞĞƚ
/ŶǀĞŶƚŽƌLJ ΨϰϬ
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐƚŚĞ
ĂƐƐĞƚƐ͕ůŝĂďŝůŝƟĞƐĂŶĚĞƋƵŝƚLJ dŽƚĂůKǁŶĞƌƐ͛
ŽĨLJŽƵƌďƵƐŝŶĞƐƐŽŶĂ dŽƚĂů>ŝĂďŝůŝƟĞƐ ΨϭϱϬ ƋƵŝƚLJ ΨϱϵϬ
ƐƉĞĐŝĮĐĚĂƚĞ͘

dŽƚĂůƐƐĞƚƐс ΨϳϰϬ dŽƚĂů>ŝĂďŝůŝƟĞƐĂŶĚKǁŶĞƌƐ͛ƋƵŝƚLJс ΨϳϰϬ

>Ğƚ͛ƐǁĂůŬƚŚƌŽƵŐŚƚŚĞďĂůĂŶĐĞƐŚĞĞƚĂďŽǀĞƐƚĂƌƟŶŐǁŝƚŚƚŚĞĂƐƐĞƚƐĐŽůƵŵŶ͘ĂƐŚŝƐŵŽŶĞLJƚŚĂƚŝƐŽŶ
ŚĂŶĚ͘dŚŝƐŝƐŵŽŶĞLJƚŚĞďƵƐŝŶĞƐƐĐĂŶƵƐĞƚŽƉƵƌĐŚĂƐĞŵŽƌĞĂƐƐĞƚƐ͘dŚĞĐŽŵƉƵƚĞƌŝƐĞƋƵŝƉŵĞŶƚĂŶĚŚĂƐ
ĂǀĂůƵĞŽĨΨϯϬϬ͘dŚĞŝŶǀĞŶƚŽƌLJŝƐƚŚĞΨĂŵŽƵŶƚƚŚĞďƵƐŝŶĞƐƐƉĂŝĚĨŽƌƚŚĞŝƌŝŶǀĞŶƚŽƌLJ͘EŽǁůĞƚƐůŽŽŬĂƚ
>ŝĂďŝůŝƟĞƐ͘͘ĐĐŽƵŶƚƐƉĂLJĂďůĞŝƐŵŽŶĞLJƚŚĞďƵƐŝŶĞƐƐŽǁĞƐ͘dŚŝƐĐŽƵůĚďĞƐƵƉƉůŝĞƐƉƵƌĐŚĂƐĞĚŽŶĐƌĞĚŝƚ
ǁŝƚŚƚŚĞŝƌƐƵƉƉůŝĞƌ͘>ŽŶŐͲdĞƌŵĚĞďƚŝƐĨŽƌůŽĂŶƐƚŚĞďƵƐŝŶĞƐƐƌĞĐĞŝǀĞĚĨƌŽŵĂďĂŶŬ͘&ŝŶĂůůLJ͕ůŽŽŬĂƚKǁŶĞƌƐ
ƋƵŝƚLJ͘ŽŶƚƌŝďƵƚĞĚƋƵŝƚLJŝƐŵŽŶĞLJƚŚĞŽǁŶĞƌƐŚĂǀĞŝŶǀĞƐƚĞĚŝŶƚŚĞŝƌďƵƐŝŶĞƐƐ͘ZĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐŝƐƚŚĞ
ƉƌŽĮƚƐƚŚĂƚƐƚĂLJǁŝƚŚŝŶƚŚĞďƵƐŝŶĞƐƐ͘

148 | Planning | Using Accounting as a Tool

dŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ
WĞŽƉůĞĂůƐŽǁĂŶƚƚŽŬŶŽǁŚŽǁƚŚĞďƵƐŝŶĞƐƐŚĂƐďĞĞŶĚŽŝŶŐ͘dŚĞLJǁĂŶƚƚŽŬŶŽǁǁŚĂƚŝƐŚĂƉƉĞŶŝŶŐ
ĂƐĂŶŽƵƚĐŽŵĞŽĨLJŽƵƌďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐ͘dŚŝŶŬŽĨƚŚŝƐĂƐƚŚĞŵŽǀŝĞŽĨLJŽƵƌďƵƐŝŶĞƐƐďĞĐĂƵƐĞƚŚĞ
ŵŽǀŝĞǁŝůůƐŚŽǁŽǀĞƌĂƉĞƌŝŽĚŽĨƟŵĞ͕ƐƵĐŚĂƐŽŶĞLJĞĂƌ͕ǁŚĂƚŚĂƐƚƌĂŶƐƉŝƌĞĚĂƚLJŽƵƌďƵƐŝŶĞƐƐ͘tĞĚŽ
ƚŚŝƐŝŶĂƐƚĂƚĞŵĞŶƚĐĂůůĞĚƚŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͘

dŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚƐŚŽǁƐƚŚĞƉƌŽĮƚŽƌůŽƐƐŽĨƚŚĞďƵƐŝŶĞƐƐĨŽƌĂƉĞƌŝŽĚŽĨƟŵĞ͘dŚĞƌĞĂƌĞƚǁŽ
ŝŵƉŽƌƚĂŶƚƐĞĐƟŽŶƐŽĨƚŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͗ƌĞǀĞŶƵĞƐĂŶĚĞdžƉĞŶƐĞƐ͘ZĞǀĞŶƵĞƌĞŇĞĐƚƐƚŚĞƌĞƐŽƵƌĐĞƐ͕
ƵƐƵĂůůLJŵŽŶĞLJ͕ĞĂƌŶĞĚĨƌŽŵƚŚĞƐĂůĞŽĨŐŽŽĚƐŽƌƐĞƌǀŝĐĞƐ͘^ĞůůŝŶŐƐĐŚŽŽůƐƵƉƉůŝĞƐŝƐĂŶĞdžĂŵƉůĞŽĨĂ
ŐŽŽĚ͘dƵƚŽƌŝŶŐƉĞŽƉůĞŝŶĐŽŵƉƵƚĞƌƐŝƐĂŶĞdžĂŵƉůĞŽĨƉƌŽǀŝĚŝŶŐĂƐĞƌǀŝĐĞ͘džƉĞŶƐĞƐĂƌĞƚŚĞĐŽƐƚƐƚŚĂƚĂ
ďƵƐŝŶĞƐƐŵƵƐƚƉĂLJƚŽŽƉĞƌĂƚĞ͕ůŝŬĞƌĞŶƚĞdžƉĞŶƐĞ͕ǁĂŐĞĞdžƉĞŶƐĞ͕ĂŶĚƉƵƌĐŚĂƐŝŶŐŝŶƉƵƚƐ;ŽƐƚŽĨ'ŽŽĚƐ
^ŽůĚͿ͘

ZĞǀĞŶƵĞƐ ŵŝŶƵƐ ĞdžƉĞŶƐĞƐ ĞƋƵĂůƐ ŶĞƚ ŝŶĐŽŵĞ ĨŽƌ LJŽƵƌ ďƵƐŝŶĞƐƐ͘ dŚŝƐ ŝƐ ĂŶ ŝŵƉŽƌƚĂŶƚ ŶƵŵďĞƌ͘ /Ĩ
ƌĞǀĞŶƵĞƐĞdžĐĞĞĚĞdžƉĞŶƐĞƐ͕ƚŚĞďƵƐŝŶĞƐƐǁŝůůŚĂǀĞĂŶĞƚŝŶĐŽŵĞ;ĂƉƌŽĮƚͿ͘/ĨĞdžƉĞŶƐĞƐĂƌĞŐƌĞĂƚĞƌƚŚĂŶ
ƌĞǀĞŶƵĞƐ͕LJŽƵǁŝůůŚĂǀĞĂŶĞƚůŽƐƐ͘dŽďĞƐƵĐĐĞƐƐĨƵů͕LJŽƵƌďƵƐŝŶĞƐƐŵƵƐƚŐĞŶĞƌĂƚĞŶĞƚŝŶĐŽŵĞĞǀĞŶƚƵĂůůLJ
ĂŶĚŚŽƉĞĨƵůůLJĐŽŶƐŝƐƚĞŶƚůLJ͘ĞůŽǁŝƐĂŶ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚĨŽƌDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚ͘

Metropolis Trash Management

/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ
Year Ending December 31, 2012
Revenues:
^ĂůĞƐ͗
ZĞŵŽǀĂůƉƉŽŝŶƚŵĞŶƚƐ ΨϰϬϬ
ĂŐƐĂŶĚ^ƵƉƉůŝĞƐ ΨϳϬ
dŽƚĂů^ĂůĞƐ ΨϰϳϬ
Expenses:
ŽƐƚŽĨ'ŽŽĚƐ^ŽůĚ͗
^ƵƉƉůŝĞƐ
tĂŐŽŶ
Ψ;ϯϬͿ
Ψ;ϱϬͿ
Your Plan
ĚǀĞƌƟƐŝŶŐdžƉĞŶƐĞ Ψ;ϭϬϬͿ KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
ƚŚŝƐĞdžĞƌĐŝƐĞ͕ƚƵƌŶƚŽƚŚĞ
dŽƚĂůdžƉĞŶƐĞƐ Ψ;ϭϳϬͿ ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞ
ĂƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůǁŝŶŐŝŶ
EĞƚ/ŶĐŽŵĞ $ 300 LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗

WƌŽũĞĐƟŽŶƐ͗
/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐŚŽǁ
ƐƐƵŵĞƚŚĂƚƚŚĞdƌĂƐŚZĞŵŽǀĂůƵƐŝŶĞƐƐ ƉƵƌĐŚĂƐĞĚϯϬďĂŐƐĨŽƌΨϭĞĂĐŚĨƌŽŵĂůŽĐĂůƐƵƉƉůLJƐƚŽƌĞ͘ ƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐ
dŚĞLJƚŚĞŶƐŽůĚϮϬŽĨƚŚŽƐĞďĂŐƐƚŽƚŚĞŝƌĐƵƐƚŽŵĞƌƐĨŽƌΨϮĞĂĐŚ͘dŚĞϮϬĐƵƐƚŽŵĞƌƐƉĂŝĚƚŚĞŵĂƚŽƚĂů ǁĂƐŽǀĞƌƟŵĞ͘
ŽĨΨϯϬϬĨŽƌƚŚĞŝƌƚƌĂƐŚƌĞŵŽǀĂůĂƉƉŽŝŶƚŵĞŶƚƐ͘'ƌĂĐĞĂůƐŽƉĂŝĚΨϯϬƚŽĐƌĞĂƚĞŇŝĞƌƐƚŽĂĚǀĞƌƟƐĞƚŚĞŝƌ
ĨƌŝĞŶĚ͛ƐďƵƐŝŶĞƐƐ͘ůůŽĨƚŚĞƐĞƚƌĂŶƐĂĐƟŽŶƐŽĐĐƵƌƌĞĚŝŶƚŚĞƐĂŵĞƉĞƌŝŽĚ͘WƌĞƉĂƌĞĂŶ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ
ƵƐŝŶŐƚŚŝƐŝŶĨŽƌŵĂƟŽŶĨŽƌƚŚĞƉĞƌŝŽĚ;LJĞĂƌͿ

ƚ ƚŚĞ ĞŶĚ ŽĨ ƚŚĞ ƉĞƌŝŽĚ͕ ĂŌĞƌ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĚƐĞŶƚƐ ŚĂǀĞ ďĞĞŶ ƉƌĞƉĂƌĞĚ͕ LJŽƵƌ ƌĞǀĞŶƵĞ ĂŶĚ
ĞdžƉĞŶƐĞ ĂĐĐŽƵŶƚƐ ǁŝůů ďĞ ͞ĐůŽƐĞĚ ŽƵƚ͟ ƚŽ ƚŚĞ ZĞƚĂŝŶĞĚ ĂƌŶŝŶŐƐ ĂĐĐŽƵŶƚ͘ dŚĞ ZĞƚĂŝŶĞĚ ĂƌŶŝŶŐƐ
ĂĐĐŽƵŶƚƌĞƉƌĞƐĞŶƚƐƚŚĞĐƵŵƵůĂƟǀĞƉƌŽĮƚŽƌůŽƐƐƚŚĂƚŚĂƐƌĞƐƵůƚĞĚŽǀĞƌƚŚĞůŝĨĞŽĨLJŽƵƌďƵƐŝŶĞƐƐ;ůĞƐƐ
ƐŽŵĞŝƚĞŵƐƐƵĐŚĂƐĚŝƐƚƌŝďƵƟŽŶƐƚŽƚŚĞŽǁŶĞƌͿ͘ůŽƐŝŶŐŽƵƚƚŚĞƌĞǀĞŶƵĞĂŶĚĞdžƉĞŶƐĞĂĐĐŽƵŶƚƐĂƚƚŚĞ
ĞŶĚŽĨĞĂĐŚLJĞĂƌĂůƐŽĞŶƐƵƌĞƐƚŚĂƚĂůůŽĨƚŚĞƐĞĂĐĐŽƵŶƚƐĂƌĞƐĞƚƚŽnjĞƌŽĂŶĚƌĞĂĚLJƚŽĂĐĐƵŵƵůĂƚĞƚŚĞ
ƚƌĂŶƐĂĐƟŽŶƐĨŽƌƚŚĞŶĞdžƚLJĞĂƌ͘dŚƵƐ͕ƚŚĞĂŵŽƵŶƚƌĞĐŽƌĚĞĚĂƐŶĞƚŝŶĐŽŵĞŽŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚǁŝůů
ďĞĂĚĚĞĚƚŽƚŚĞĂŵŽƵŶƚĂůƌĞĂĚLJŝŶƚŚĞZĞƚĂŝŶĞĚĂƌŶŝŶŐƐdͲĂĐĐŽƵŶƚĂƚƚŚĞĞŶĚŽĨĞĂĐŚLJĞĂƌ͘

Using Accounting as a Tool | Planning | 149

 The Cash Flow Statement
dŚĞŶĞdžƚƚŚŝŶŐƚŚĂƚƉĞŽƉůĞĂƌĞŝŶƚĞƌĞƐƚĞĚŝŶŬŶŽǁŝŶŐŝƐǁŚĞƌĞŝƐLJŽƵƌĐĂƐŚĐŽŵŝŶŐĨƌŽŵĂŶĚǁŚĞƌĞ
ŝƐŝƚŐŽŝŶŐ͘/ƚŵĂLJƚŚĞƐĂŵĞĂƐĂŶŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚďƵƚŵŽƐƚƟŵĞƐ͕ĐĂƐŚŝƐŶŽƚƚŚĞŽŶůLJƌĞƐŽƵƌĐĞ
ƚŚĂƚƉĞŽƉůĞƉƌŽǀŝĚĞ͘tŚĂƚǁĞŚĂǀĞƚŽƌĞŵĞŵďĞƌŝŶƚĞƌŵƐŽĨƌƵŶŶŝŶŐƚŚĞďƵƐŝŶĞƐƐŝƐƚŚĂƚLJŽƵĐĂŶŶŽƚ
ƉĂLJƚŚĞďŝůůƐƵŶůĞƐƐLJŽƵŚĂǀĞĐĂƐŚ͘dŽŵĞĂƐƵƌĞƚŚŝƐ͕LJŽƵǁŽƵůĚŶĞĞĚƚŽĐƌĞĂƚĞĂĚŝīĞƌĞŶƚƐƚĂƚĞŵĞŶƚ
ƚŚĂƚƐŚŽǁƐŚŽǁƚŚĞĐĂƐŚŝƐďĞŝŶŐƵƐĞĚĂŶĚǁŚĞƌĞŝƚŝƐĐŽŵŝŶŐĨƌŽŵʹƚŚŝƐŝƐĐĂůůĞĚƚŚĞĂƐŚ&ůŽǁ
^ƚĂƚĞŵĞŶƚ͘

dŚĞƌĞĂƌĞŵĂŶLJĚŝīĞƌĞŶƚƌĞƐŽƵƌĐĞƐƚŚĂƚLJŽƵŶĞĞĚĂŶĚǁŝůůƵƐĞŝŶLJŽƵƌďƵƐŝŶĞƐƐ͕ďƵƚƉĞƌŚĂƉƐƚŚĞŵŽƐƚ
ŝŵƉŽƌƚĂŶƚŝƐĐĂƐŚ͘zŽƵƌďƵƐŝŶĞƐƐŶĞĞĚƐĐĂƐŚƚŽƐƵƌǀŝǀĞ͘hŶĚĞƌƐƚĂŶĚŝŶŐŚŽǁŵƵĐŚĐĂƐŚŝƐĐŽŵŝŶŐŝŶƚŽ
ĂŶĚŽƵƚŽĨLJŽƵƌďƵƐŝŶĞƐƐŝƐǀĞƌLJŝŵƉŽƌƚĂŶƚ͘/ĨƚŚĞŵŽŶĞLJLJŽƵƌĐƵƐƚŽŵĞƌƐŽǁĞLJŽƵ;ĐĂůůĞĚ͞ĐĐŽƵŶƚƐ
ZĞĐĞŝǀĂďůĞ͟ͿŝƐŶŽƚĐŽůůĞĐƚĞĚ͕ďƵƚďŝůůƐ͕ůŽĂŶƐ͕ĂŶĚǁĂŐĞƐƚŚĂƚLJŽƵŽǁĞĂƌĞĚƵĞ͕LJŽƵŚĂǀĞĂƉƌŽďůĞŵ͘
ǀĞŶŝĨLJŽƵƌďƵƐŝŶĞƐƐŚĂƐƌĞǀĞŶƵĞƐĐŽŵŝŶŐŝŶ͕ŝĨƚŚŽƐĞƌĞǀĞŶƵĞƐĂƌĞŶŽƚĐĂƐŚ͕ƚŚĞLJĐĂŶŶŽƚďĞƵƐĞĚƚŽ
ƉĂLJŽīLJŽƵƌĚĞďƚƐ͕ƉƵƌĐŚĂƐĞŵĂƚĞƌŝĂůƐ͕ŽƌŚŝƌĞǁŽƌŬĞƌƐ͘

Metropolis Trash Management

Cash Flow Sheet
Year Ending December 31, 2012
ĂƐŚ&ůŽǁͲKƉĞƌĂƟŽŶƐ
EĞƚ/ŶĐŽŵĞ ΨϱϬϬ͘ϬϬ
/ŶĐƌĞĂƐĞĐĐŽƵŶƚƐZĞĐĞŝǀĂďůĞ Ψ;ϭϬϬ͘ϬϬͿ
/ŶĐƌĞĂƐĞĐĐŽƵŶƚƐWĂLJĂďůĞ ΨϮϬϬ͘ϬϬ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵKƉĞƌĂƟŽŶƐ ΨϲϬϬ͘ϬϬ

ĂƐŚ&ůŽǁͲ/ŶǀĞƐƟŶŐ
ĐƋƵŝƐŝƟŽŶŽĨŶĞǁĞƋƵŝƉŵĞŶƚ Ψ;ϱϬ͘ϬϬͿ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵ/ŶǀĞƐƟŶŐ Ψ;ϱϬ͘ϬϬͿ

ĂƐŚ&ůŽǁͲ&ŝŶĂŶĐŝŶŐ
ZĞƉĂLJŵĞŶƚŽĨ>ŽŶŐdĞƌŵĞďƚ Ψ;ϱϬ͘ϬϬͿ
/ƐƐƵĞĚ^ƚŽĐŬ Ψϭϱ͘ϬϬ
WĂŝĚŝŶĂƉŝƚĂů ΨϭϬϬ͘ϬϬ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵ&ŝŶĂŶĐŝŶŐ Ψϲϱ͘ϬϬ

Total Change in Cash Ψϲϭϱ͘ϬϬ

ĂƐŚŝƐĐŽŵŵŽŶůLJĐĂƚĞŐŽƌŝnjĞĚŝŶƚŽŽŶĞŽĨƚŚƌĞĞĂƌĞĂƐ͗ĐĂƐŚĨƌŽŵŽƉĞƌĂƟŽŶƐ͕ĐĂƐŚĨƌŽŵŝŶǀĞƐƚŵĞŶƚ
ĂŶĚĐĂƐŚĨƌŽŵĮŶĂŶĐŝŶŐ͘ĂƐŚĨƌŽŵŽƉĞƌĂƟŽŶƐŝŶĐůƵĚĞƐLJŽƵƌĚĂLJƚŽĚĂLJĂĐƟǀŝƟĞƐ͘ƐĂůĞƐĂŶĚĚĂŝůLJ
ĞdžƉĞŶƐĞƐĂƌĞĐĂƉƚƵƌĞĚŝŶƚŚĞEĞƚ/ŶĐŽŵĞůŝŶĞ͕LJŽƵƌĐĂƐŚĚĞĐƌĞĂƐĞƐǁŚĞŶLJŽƵƌĂĐĐŽƵŶƚƐƌĞĐŝĞǀĂďůĞ
ŝŶĐƌĞĂƐĞƐďĞĐĂƵƐĞƚŚŽƵŐŚLJŽƵ͛ǀĞŵĂĚĞƚŚĞƐĂůĞĂŶĚŝƚ͛ƐƌĞĐŽƌĚĞĚŝŶLJŽƵƌŶĞƚŝŶĐŽŵĞ͕LJŽƵŚĂǀĞŶŽƚ
LJĞƚŐŽƩĞŶƚŚĞĐĂƐŚĨŽƌƚŚĂƚƐĂůĞLJĞƚ͘^ŝŵŝůĂƌůLJ͕ŝĨĂƐƵƉƉůŝĞƌŚĂƐŐŝǀĞŶLJŽƵŵĂƚĞƌŝĂůƐĨŽƌLJŽƵƌƉƌŽĚƵĐƚ
ďƵƚLJŽƵŚĂǀĞŶŽƚLJĞƚƉĂŝĚƚŚĞŵ͕LJŽƵƌĐĂƐŚŝŶĐƌĞĂƐĞƐďĞĐĂƵƐĞLJŽƵ͛ǀĞƌĞĐŽƌĚĞĚƚŚĞĞdžƉĞŶƐĞŝŶLJŽƵƌŶĞƚ
ŝŶĐŽŵĞďƵƚLJŽƵŚĂǀĞŶŽƚLJĞƚƚĂŬĞŶƚŚĞĐĂƐŚĨƌŽŵLJŽƵƌĂĐĐŽƵŶƚĂŶĚŐŝǀĞŶŝƚƚŽƚŚĞƐƵƉƉůŝĞƌ͘ĂƐŚĨƌŽŵ
/ŶǀĞƐƟŶŐŝŶĐůƵĚĞƐŵŽƐƚůLJŽŶĞƟŵĞŽƌŝƌƌĞŐƵůĂƌƉƵƌĐŚĂƐĞƐƚŚĂƚĐŽŶƚƌŝďƵƚĞƚŽLJŽƵƌďƵƐŝŶĞƐƐ͛ƐĂƐƐĞƚƐ͘
DŽƐƚůLJŝŶ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ͕LJŽƵ͛ůůƵƐĞƚŚŝƐĂƌĞĂƚŽƌĞĐŽƌĚƉƵƌĐŚĂƐĞƐŽƌŝŶǀĞƐƚŵĞŶƚƐŝŶƉƌŽƉĞƌƚLJ͕
ƉůĂŶƚŽƌĞƋƵŝƉŵĞŶƚ͘&ŝŶĂůůLJ͕ĐĂƐŚĨƌŽŵĮŶĂŶĐŝŶŐŝŶĐůƵĚĞƐĂŶLJůŽĂŶƐLJŽƵƚĂŬĞŽƵƚŽƌƉĂLJďĂĐŬ͕ĂŶLJ
ŵŽŶĞLJƚŚĂƚLJŽƵŽƌŽƚŚĞƌƐĐŽŶƚƌŝďƵƚĞƚŽƚŚĞďƵƐŝŶĞƐƐŝŶĞdžĐŚĂŶŐĞĨŽƌŽǁŶĞƌƐŚŝƉ͕ŽƌĞƋƵŝƚLJ͘dŚĞĮŶĂů
ŶƵŵďĞƌ͕Žƌ͞ƚŽƚĂůĐŚĂŶŐĞŝŶĐĂƐŚ͟ƐŚŽƵůĚďĞƚŚĞĂŵŽƵŶƚŽĨĐĂƐŚLJŽƵŚĂǀĞŝŶLJŽƵƌďƵƐŝŶĞƐƐ͛ƐďĂŶŬ
ĂĐĐŽƵŶƚ͘

150 | Planning | Using Accounting as a Tool

 Exercise 9.2: Cash and Cash Flows
,ŽǁǁŝůůLJŽƵŬĞĞƉLJŽƵƌďƵƐŝŶĞƐƐ͛ƚƌĂŶƐĂĐƟŽŶƐƐĞƉĂƌĂƚĞĨƌŽŵLJŽƵƌƉĞƌƐŽŶĂůƚƌĂŶƐĂĐƟŽŶƐ͍

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tŚĞƌĞǁŝůůLJŽƵŬĞĞƉLJŽƵƌďƵƐŝŶĞƐƐ͛ĐĂƐŚ͍tŝůůLJŽƵƵƐĞĂďĂŶŬĂĐĐŽƵŶƚ͍

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>ŝƐƚƚŚƌĞĞǁĂLJƐLJŽƵƌďƵƐŝŶĞƐƐĐĂŶŽďƚĂŝŶŵŽƌĞĐĂƐŚŽƌƐĂǀĞĐĂƐŚ͘

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>ŝƐƚƐŽŵĞďĞŶĞĮƚƐĂŶĚĚƌĂǁďĂĐŬƐƚŽƐĞůůŝŶŐŐŽŽĚƐŽƌƐĞƌǀŝĐĞƐŽŶĂĐĐŽƵŶƚ;ĂĐĐŽƵŶƚƐƌĞĐĞŝǀĂďůĞͿ͘
tŚĂƚƐƚĞƉƐĐĂŶLJŽƵƚĂŬĞƚŽŝŶĐƌĞĂƐĞƚŚĞůŝŬĞůŝŚŽŽĚƚŚĂƚLJŽƵƌĐƵƐƚŽŵĞƌƐǁŝůůƉĂLJLJŽƵ͍ 

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Lesson 9.4: Looking Toward the Future

dŽŐĞƚƐŽŵĞŽŶĞƚŽŝŶǀĞƐƚŝŶLJŽƵƌďƵƐŝŶĞƐƐ͕LJŽƵŶĞĞĚƚŽďĞĨŽƌǁĂƌĚůŽŽŬŝŶŐ͘ĂƐĞĚŽŶƉĂƐƚŚŝƐƚŽƌLJŽƌ
ĞǀĞŶŝĨLJŽƵĚŽŶ͛ƚŚĂǀĞĂƉĂƐƚŚŝƐƚŽƌLJďƵƚLJŽƵŚĂǀĞĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽƚŚŝŶŬĂďŽƵƚǁŚĂƚLJŽƵƌďƵƐŝŶĞƐƐ
ŵŝŐŚƚůŽŽŬůŝŬĞ͕ĂƌŵĞĚǁŝƚŚƚŚĞŬŶŽǁůĞĚŐĞŽĨǁŚĂƚƚŚĞŝŶĐŽŵĞĂŶĚďĂůĂŶĐĞƐŚĞĞƚƐůŽŽŬůŝŬĞ͕ĂŶĚLJŽƵ
ĐĂŶĚĞǀĞůŽƉĂƉƌŽũĞĐƟŽŶŽĨǁŚĂƚƚŚĞďƵƐŝŶĞƐƐŵŝŐŚƚůŽŽŬůŝŬĞ͘tŚĂƚŝƐƚŚĞƉƌŝŵĂƌLJǁĞĂŬŶĞƐƐŽĨƚŚŝƐ͍
dŚĂƚLJŽƵŵĂLJŚĂǀĞƚŽŐƵĞƐƐʹǁŝƚŚĂƐƐƵŵƉƟŽŶƐ͘

^Ž ŚŽǁ ĐĂŶ LJŽƵ ŐĞƚ ƐŽŵĞŽŶĞ ƚŽ ďĞůŝĞǀĞ LJŽƵƌ ŐƵĞƐƐ͍ /ƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ ĐĂƌĞĨƵůůLJ ĚŽĐƵŵĞŶƚ LJŽƵƌ
ĂƐƐƵŵƉƟŽŶƐͲƚŚĞŐƵĞƐƐĞƐƚŚĂƚLJŽƵ͛ǀĞŵĂĚĞŝŶƚĞƌŵƐŽĨǁŚĞƌĞLJŽƵƌƌĞƐŽƵƌĐĞƐǁŝůůĐŽŵĞĨƌŽŵĂŶĚ
ŚŽǁƚŚĞLJǁŝůůďĞƵƐĞĚͲďĞĐĂƵƐĞƐŽŵĞŽŶĞĐĂŶƚŚĞŶĂŶĂůLJnjĞLJŽƵƌĂƐƐƵŵƉƟŽŶƐĂŶĚƚŚĞŶƐĞĞŝĨƚŚĞLJ
ĂŐƌĞĞǁŝƚŚLJŽƵ͘ĞƐƉŝƚĞƚŚĂƚŝƚŝƐŝƐĂĨŽƌǁĂƌĚůŽŽŬŝŶŐƐƚĂƚĞŵĞŶƚĂŶĚŶŽƚĂĚĞĮŶŝƚĞƚƌƵƚŚ͕ŝƚĚŽĞƐŐŝǀĞ
ĂƉŽƚĞŶƟĂůŝŶǀĞƐƚŽƌĂůŽŽŬŝŶƚŽǁŚĂƚLJŽƵƌďƵƐŝŶĞƐƐŵŝŐŚƚďĞĐŽŵĞĂŶĚŚŽǁŝƚŵŝŐŚƚďĞƐƵĐĐĞƐƐĨƵů͘
EŽǁ͕LJŽƵŵŝŐŚƚĂƐŬ͕ǁŝůůƚŚĞƐĞƉƌŽũĞĐƟŽŶƐĐŽŵĞƚƌƵĞ͍dŚĞƚƌƵƚŚĨƵůĂŶƐǁĞƌŝƐ͕ƚŚĞLJǁŝůůŶĞǀĞƌĂůůĐŽŵĞ
ƚƌƵĞďĞĐĂƵƐĞƚŚŝŶŐƐǁŝůůĐŚĂŶŐĞ͘,ŽǁĞǀĞƌ͕ƚŚĞLJĚŽƉƌŽǀŝĚĞĂďĞƐƚŐƵĞƐƐĂŶĚĂƉůĂŶĨŽƌŚŽǁƚŽŵŽǀĞ
ĨŽƌǁĂƌĚ͘

dŚĞƌĞĂƌĞƚǁŽĐŽŵŵŽŶƌĞƉŽƌƚƐƚŚĂƚŽƚŚĞƌƐŵĂLJǁĂŶƚLJŽƵƚŽƐŚĂƌĞ͘KŶĞ͕ƚŚĞ^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚhƉ
ŽƐƚƐŝƐĐƌĞĂƚĞĚŽŶůLJǁŚĞŶLJŽƵĂƌĞƐƚĂƌƟŶŐLJŽƵƌŶĞǁďƵƐŝŶĞƐƐŽƌƉƌŽũĞĐƚ͘dŚĞŽƚŚĞƌ͕ƚŚĞWƌŽĨŽƌŵĂ
/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚƐŚĂƌĞƐLJŽƵƌƉƌĞĚŝĐƟŽŶƐŽĨLJŽƵƌďƵƐŝŶĞƐƐ͛ƐƐƵĐĐĞƐƐĨŽƌƚŚĞƵƉĐŽŵŝŶŐŵŽŶƚŚŽƌLJĞĂ

Using Accounting as a Tool | Planning | 151

 dŚĞWƌŽĨŽƌŵĂ^ƚĂƚĞŵĞŶƚŽƌWƌŽũĞĐƟŽŶƐ
ŶŽƚŚĞƌŬŝŶĚŽĨŝŶĨŽƌŵĂƟŽŶƚŚĂƚƉĞŽƉůĞĂƌĞƐŽŵĞƟŵĞƐůŽŽŬŝŶŐĨŽƌŝƐ͞ǁŚĂƚŝƐŐŽŝŶŐƚŽŚĂƉƉĞŶƚŽ
ƚŚŝƐďƵƐŝŶĞƐƐŝŶƚŚĞĨƵƚƵƌĞ͍͟dŚĞƐĞĂƌĞĐĂůůĞĚƉƌŽũĞĐƟŽŶƐŽƌƐŽŵĞƟŵĞƐƚŚĞǁŽƌĚ͞WƌŽĨŽƌŵĂ͟ŝƐƵƐĞĚ͘
dŚĞŽƚŚĞƌƚŚƌĞĞƐƚĂƚĞŵĞŶƚƐͲƚŚĞĂůĂŶĐĞ^ŚĞĞƚ͕ƚŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚĂŶĚƚŚĞĂƐŚ&ůŽǁʹůŽŽŬƐĂƚ
ǁŚĂƚŝƐŚĂƉƉĞŶŝŶŐǁŝƚŚƚŚĞďƵƐŝŶĞƐƐĐƵƌƌĞŶƚůLJŽƌĂƚĂƉƌĞǀŝŽƵƐƉĞƌŝŽĚŽĨƟŵĞďƵƚ͕ƚŚĞĨƵƚƵƌĞŝƐĂůƐŽŽĨ
ŝŶƚĞƌĞƐƚƚŽƉĞŽƉůĞ͘zŽƵĐĂŶƵƐĞƚŚĞŝŶĨŽƌŵĂƟŽŶĨƌŽŵƚŚĞƉĂƐƚƚŽŐĞƚĂŶŝĚĞĂŽĨǁŚĂƚǁŝůůŚĂƉƉĞŶĂŶĚ
ƐŽǁĞǁŽƵůĚƉƵƚƚŽŐĞƚŚĞƌĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƚŚĂƚĂƌĞƉƵƚƚŽŐĞƚŚĞƌďĂƐĞĚŽŶƚŚŽƐĞǀŝƐŝŽŶƐŽĨƚŚĞ
ĨƵƚƵƌĞĂŶĚǁĞǁŽƵůĚĐĂůůƚŚĞŵ͞ƉƌŽũĞĐƟŽŶƐ͘͟

dŽ ĐƌĞĂƚĞ Ă WƌŽĨŽƌŵĂ /ŶĐŽŵĞ ^ƚĂƚĞŵĞŶƚ͕ LJŽƵ ǁŝůů ĮƌƐƚ ŶĞĞĚ ƚŽ ĞƐƟŵĂƚĞ LJŽƵƌ ƉƌŽũĞĐƚĞĚ ĞdžƉĞŶƐĞƐ
ĂŶĚĐĂƐŚĚŝƐďƵƌƐĞŵĞŶƚƐ͘dŽĚŽƚŚŝƐ͕ƚŚŝŶŬďĂĐŬƚŽƚŚĞĚĂLJͲƚŽͲĚĂLJŽƉĞƌĂƟŽŶƐŽĨLJŽƵƌďƵƐŝŶĞƐƐ;ƚŚĞ
ƚĂƐŬƐĂŶĚĂĐƟǀŝƟĞƐLJŽƵƌďƵƐŝŶĞƐƐǁŝůůŶĞĞĚƚŽƉĞƌĨŽƌŵƚŽƐĞůůƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐͿ͘,ŽǁŵƵĐŚĚŽĞƐ
ĞĂĐŚƚĂƐŬŽƌĂĐƟǀŝƚLJĐŽƐƚĚĂŝůLJ͕ǁĞĞŬůLJ͕ŵŽŶƚŚůLJ͕ŽƌLJĞĂƌůLJ͍tŚĂƚƐƉĞĐŝĮĐĞdžƉĞŶƐĞƐǁŝůůďĞŝŶĐƵƌƌĞĚ
ƚŽĐŽŶĚƵĐƚƚŚĞƐĞƚĂƐŬƐĂŶĚĂĐƟǀŝƟĞƐ͍KŶĐĞLJŽƵŬŶŽǁƚŚŝƐ͕LJŽƵĐĂŶƵƐĞƐŝŵƉůĞŵĂƚŚƚŽĐĂůĐƵůĂƚĞƚŚĞ
ĞdžƉĞŶƐĞĂŵŽƵŶƚƐ͘/ĨLJŽƵŶŽƟĐĞƚŚĂƚLJŽƵǁŽŶ͛ƚŚĂǀĞĞŶŽƵŐŚĐĂƐŚƚŽŚĂŶĚůĞĂůůŽĨLJŽƵƌĞdžƉĞŶƐĞƐ͕LJŽƵ
ŵĂLJŶĞĞĚƚŽŵĂŬĞĂĚũƵƐƚŵĞŶƚƐƚŽLJŽƵƌƉůĂŶŶĞĚŽƉĞƌĂƟŽŶƐ͘ZĞĞǀĂůƵĂƚĞǁŚŝĐŚĞdžƉĞŶƐĞƐĂƌĞƌĞĂůůLJ
ŶĞĞĚƐĂƐŽƉƉŽƐĞĚƚŽũƵƐƚǁĂŶƚƐ͘/ĨLJŽƵĚĞĐŝĚĞƚŚĂƚLJŽƵĐĂŶ͛ƚŵĂŬĞĨƵƌƚŚĞƌĐƵƚƐƚŽLJŽƵƌŽƉĞƌĂƟŽŶƐ
ĂŶĚĞdžƉĞŶƐĞƐ͕LJŽƵŵĂLJƐƟůůďĞĂďůĞƚŽŐĞƚĂĚĚŝƟŽŶĂůĐĂƐŚƚŚƌŽƵŐŚůŽĂŶƐŽƌŝŶǀĞƐƚŽƌƐ͘dŽĚŽƚŚŝƐ͕LJŽƵ
ǁŝůůŶĞĞĚƚŽƐŚŽǁƐƚƌŽŶŐĞǀŝĚĞŶĐĞƚŚĂƚLJŽƵƌďƵƐŝŶĞƐƐĐĂŶĂŶĚǁŝůůďĞƉƌŽĮƚĂďůĞ͘ƐĂŶĞdžĂŵƉůĞ͕LJŽƵƌ
ƉƌŽͲĨŽƌŵĂŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŵĂLJůŽŽŬƐŽŵĞƚŚŝŶŐůŝŬĞƚŚĞďůĂŶŬĐŚĂƌƚďĞůŽǁďĞĨŽƌĞLJŽƵďĞŐŝŶƚŽĞŶƚĞƌ
LJŽƵƌƚƌĂŶƐĂĐƟŽŶƐ͘
hƐĞĂƚĞŵƉůĂƚĞůŝŬĞƚŚĞŽŶĞďĞůŽǁĨŽƌDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚŽĚƌĂŌLJŽƵƌƐƚĂƚĞŵĞŶƚ͘

Metropolis Trash Management

WƌŽ&ŽƌŵĂ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ
2013
^ĂůĞƐ

ŽƐƚŽĨ'ŽŽĚƐ^ŽůĚ

Gross Margin

KƉĞƌĂƟŶŐdžƉĞŶƐĞƐ͗
ĚǀĞƌƟƐŝŶŐ
ZĞŶƚ
tĂŐĞƐ
dŽƚĂůKƉĞƌĂƟŶŐdžƉĞŶƐĞƐ

Your Plan EĞƚ/ŶĐŽŵĞĞĨŽƌĞdĂdžĞƐ

/ŶĐŽŵĞdĂdžĞƐ
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
ƚŚŝƐĞdžĞƌĐŝƐĞ͕ƚƵƌŶƚŽƚŚĞ EĞƚ/ŶĐŽŵĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞ
ĂƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗ /ĨĂůůŐŽĞƐĂĐĐŽƌĚŝŶŐƚŽƉůĂŶ͕ƚŚĞĂĐƚƵĂůƌĞǀĞŶƵĞƐ͕ĞdžƉĞŶƐĞƐ͕ĂŶĚĐĂƐŚŇŽǁƐŽĨLJŽƵƌďƵƐŝŶĞƐƐƐŚŽƵůĚďĞ
ĐůŽƐĞƚŽƚŚĞďƵĚŐĞƚĞĚĂŵŽƵŶƚƐ͘/ĨƚŚĞƌĞĂƌĞůĂƌŐĞĚŝīĞƌĞŶĐĞƐ͕LJŽƵƐŚŽƵůĚĐŽŶƐŝĚĞƌǁŚLJƚŚŝƐŵŝŐŚƚďĞ
WƌŽũĞĐƟŽŶƐ͗ ĂŶĚŵĂŬĞĚĞĐŝƐŝŽŶƐĂďŽƵƚƚŚĞďƵƐŝŶĞƐƐĂĐĐŽƌĚŝŶŐůLJ͘zŽƵƐŚŽƵůĚŬŶŽǁƚŚĂƚLJŽƵƌƉƌŽũĞĐƚƐǁŝůůĂůŵŽƐƚ
WƌŽ&ŽƌŵĂ^ƚĂƚĞŵĞŶƚ ŶĞǀĞƌďĞĞdžĂĐƚůLJĂƐLJŽƵĞdžƉĞĐƚĞĚͲĐŽƐƚƐƌŝƐĞ͕ƵŶĞdžƉĞĐƚĞĚĞdžƉĞŶƐĞƐŽĐĐƵƌĂŶĚĐŽŶƐƵŵĞƌďĞŚĂǀŝŽƌƐ
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐŚŽǁ ŝŶŇƵĞŶĐĞŚŽǁǁĞůůLJŽƵƌƉƌŽĚƵĐƚĚŽĞƐŽŶƚŚĞŵĂƌŬĞƚ͘
ƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐ
ǁĂƐŽǀĞƌƟŵĞ͘

152 | Planning | Using Accounting as a Tool

The Schedule of Start Up Costs
ĞĨŽƌĞĚĞĐŝĚŝŶŐǁŚĞƌĞLJŽƵƌďƵƐŝŶĞƐƐǁŝůůŐĞƚŝƚƐĨƵŶĚŝŶŐ͕LJŽƵŵƵƐƚĮƌƐƚĐĂůĐƵůĂƚĞŚŽǁŵƵĐŚŵŽŶĞLJ
LJŽƵ ǁŝůů ŶĞĞĚ ;ƌĞĨĞƌ ďĂĐŬ ƚŽ ƚŚĞ ĚŝƐĐƵƐƐŝŽŶ ŽĨ ͞ǁĂŶƚƐ ǀƐ͘ ŶĞĞĚƐ͟ ŝŶ ƚŚĞ KƉĞƌĂƟŽŶƐ ƐĞĐƟŽŶͿ͕ ĂŶĚ
ǁŚĂƚƐƉĞĐŝĮĐĂůůLJƚŚĂƚŵŽŶĞLJǁŝůůďĞƐƉĞŶƚŽŶ͘dŚĞƐĐŚĞĚƵůĞŽĨƐƚĂƌƚͲƵƉĐŽƐƚƐƐŚŽǁƐǁŚĂƚĞdžƉĞŶƐĞƐ
LJŽƵƌďƵƐŝŶĞƐƐǁŝůůŝŶĐƵƌďĞĨŽƌĞŽƉĞƌĂƟŽŶƐƐƚĂƌƚ͕ĂŶĚŚŽǁŵƵĐŚĐĂƐŚǁŝůůďĞŶĞĞĚĞĚƚŽĐŽǀĞƌƚŚĞƐĞ
ĞdžƉĞŶƐĞƐ͘dŚŝƐƐĐŚĞĚƵůĞǁŝůůĞŶĂďůĞLJŽƵƚŽƵŶĚĞƌƐƚĂŶĚŚŽǁŵƵĐŚŵŽŶĞLJ;ŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐͿLJŽƵ
ŵƵƐƚƌĂŝƐĞƚŽŐĞƚƚŚŝƐďƵƐŝŶĞƐƐƵƉĂŶĚƌƵŶŶŝŶŐ͘tĞǁŝůůƵƐĞĂĨĞǁŵĂũŽƌĐĂƚĞŐŽƌŝĞƐƚŽĚĞǀĞůŽƉŽƵƌ
ƐĐŚĞĚƵůĞŽĨƐƚĂƌƚͲƵƉĐŽƐƚƐ͘dŚĞLJŝŶĐůƵĚĞ͗

ͻKŶĞͲƟŵĞŽƌŐĂŶŝnjĂƟŽŶĂůĐŽƐƚƐ;ďƵƐŝŶĞƐƐůŝĐĞŶƐĞ͕ĨĞĞƐ͕ĞƚĐ͘Ϳ
ͻĞƉŽƐŝƚƐĂŶĚƉƌĞƉĂŝĚĞdžƉĞŶƐĞƐ
ͻWƌŽƉĞƌƚLJĂŶĚƋƵŝƉŵĞŶƚ
ͻ/ŶŝƟĂů/ŶǀĞŶƚŽƌLJ
ͻĂƐŚŶĞĞĚĞĚĨŽƌƚŚĞĮƌƐƚĨĞǁŵŽŶƚŚƐŽĨŽƉĞƌĂƟŽŶ;ĐĂůůĞĚtŽƌŬŝŶŐĂƉŝƚĂůͿ

Exercise 9.3: WƌĞƉĂƌŝŶŐĂ^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚͲhƉŽƐƚƐ

zŽƵǁŽƵůĚůŝŬĞƚŽƐƚĂƌƚĂďƵƐŝŶĞƐƐ͕ďƵƚŶĞĞĚĂůŽĂŶƚŽĐŽǀĞƌďĞŐŝŶŶŝŶŐĞdžƉĞŶƐĞƐ͘dŚĞďĂŶŬŚĂƐ
ĂƐŬĞĚLJŽƵƚŽƉƌĞƉĂƌĞĂƐĐŚĞĚƵůĞŽĨƐƚĂƌƚͲƵƉĐŽƐƚƐƚŽĚĞƚĞƌŵŝŶĞŚŽǁŵƵĐŚŵŽŶĞLJLJŽƵƌďƵƐŝŶĞƐƐ
ǁŝůůŶĞĞĚ͘ŽŵƉůĞƚĞƚŚĞƐĐŚĞĚƵůĞŽĨƐƚĂƌƚͲƵƉĐŽƐƚƐďĞůŽǁƵƐŝŶŐƚŚĞĨŽůůŽǁŝŶŐĂƐƐƵŵƉƟŽŶƐ͗
ͻzŽƵŝŶƚĞŶĚƚŽŚŝƌĞĂĨƌŝĞŶĚƚŽĐƌĞĂƚĞĂůŽŐŽĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͕ǁŚŝĐŚǁŝůůĐŽƐƚΨϭϬϬ͘
ͻdŚĞďƵŝůĚŝŶŐLJŽƵǁĂŶƚƚŽƌĞŶƚƌĞƋƵŝƌĞƐĂΨϭϬϬĚĞƉŽƐŝƚƵƉĨƌŽŶƚ͘
ͻzŽƵƉůĂŶƚŽƐƉĞŶĚΨϱϬŝŶƉƌĞͲŽƉĞŶŝŶŐĂĚǀĞƌƟƐŝŶŐĨŽƌĂŶĂĚŝŶ^ĞŬŽŶĚŝͲdĂŬŽƌĂĚŝdŝŵĞƐ͘
ͻ^ƵƉƉůŝĞƐĨŽƌLJŽƵƌďƵƐŝŶĞƐƐǁŝůůĐŽƐƚΨϱϬ͘
ͻzŽƵǁŝůůŶĞĞĚĂƚƌƵĐŬ͕ĐŽƐƟŶŐΨϭϱϬϬ͕ƚŽĚĞůŝǀĞƌLJŽƵƌƉƌŽĚƵĐƚƚŽĐƵƐƚŽŵĞƌƐ͘
ͻzŽƵǁŝůůŶĞĞĚϱϬƵŶŝƚƐŽĨŝŶǀĞŶƚŽƌLJĨŽƌĮƌƐƚƋƵĂƌƚĞƌƐĂůĞƐ͘ĂĐŚƵŶŝƚǁŝůůĐŽƐƚLJŽƵΨϭ͘
ͻzŽƵǁŽƵůĚůŝŬĞƚŽŚĂǀĞΨϱϲϬŝŶtŽƌŬŝŶŐĂƉŝƚĂů͕ĂƐǁĞůůĂƐĂϭϬйĐŽŶƟŶŐĞŶĐLJ;ďƵīĞƌͿ͘
Your Plan
Metropolis Trash Management KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
Schedule of Start-up Costs ƚŚŝƐĞdžĞƌĐŝƐĞ͕ƚƵƌŶƚŽƚŚĞ
2013 ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞ
ĂƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůǁŝŶŐŝŶ
KŶĞͲƟŵĞKƌŐĂŶŝnjĂƟŽŶĂůŽƐƚƐ͗ LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
>ŽŐŽƌĞĂƟŽŶ ΨϭϬϬ
WƌŽũĞĐƟŽŶƐ͗
^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚͲhƉŽƐƚƐ
ĞƉŽƐŝƚƐĂŶĚWƌĞƉĂŝĚdžƉĞŶƐĞƐ͗
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐŚŽǁ
ZĞŶƚĞƉŽƐŝƚ ΨϭϬϬ ƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐ
WƌĞͲKƉĞŶŝŶŐĚǀĞƌƟƐŝŶŐ ΨϱϬ ǁĂƐŽǀĞƌƟŵĞ͘͘
^ƵƉƉůŝĞƐ ΨϱϬ

WƌŽƉĞƌƚLJĂŶĚƋƵŝƉŵĞŶƚ
;dƌƵĐŬͿ
/ŶŝƟĂů/ŶǀĞŶƚŽƌLJ
tŽƌŬŝŶŐĂƉŝƚĂů
ŽŶƟŶŐĞŶĐLJͬƵīĞƌ

Total Start-up Costs

Using Accounting as a Tool | Planning | 153


dŚŝƐǁŝůůŚĞůƉLJŽƵŝĨLJŽƵ
ŚĂǀĞƚŽĐŚĂŶŐĞLJŽƵƌŝĚĞĂ͊
154 | Planning | Using Accounting as a Tool
ĐĐŽƵŶƟŶŐŝƐĂĮŶĂŶĐŝĂůƌĞƉŽƌƟŶŐƚŽŽůĂŶĚŝƐŝŵƉŽƌƚĂŶƚĨŽƌLJŽƵƚŽƵƟůŝnjĞƚŽĞŶƐƵƌĞLJŽƵĂůǁĂLJƐŬŶŽǁ
ŽĨ ƚŚĞ ĮŶĂŶĐŝĂů ŚĞĂůƚŚ ŽĨ LJŽƵƌ ďƵƐŝŶĞƐƐ͘ zŽƵƌ ĂĐĐŽƵŶƟŶŐ ƐƚĂƚĞŵĞŶƚƐ ĂŶĚ ƚŚĞ ƌĞĐŽƌĚƐ ƚŚĞLJ ƌĞŇĞĐƚ
ĂƌĞƚŚĞĨŽƵŶĚĂƟŽŶŽĨĞǀĞƌLJďƵƐŝŶĞƐƐĚĞĐŝƐŝŽŶLJŽƵǁŝůůŵĂŬĞ͕ƚŽďĞĐŽƵƉůĞĚǁŝƚŚĚĞĐŝƐŝŽŶƐŽĨLJŽƵƌ
ďƵƐŝŶĞƐƐ͛ƐǀĂůƵĞƐĂŶĚŝŶƚĞŶƟŽŶƐ͕ŝƚƐĐŽŵŵƵŶŝƚLJŝŵƉĂĐƚĂŶĚƚŚĞďƵƐŝŶĞƐƐ͛ƐůŽŶŐƚĞƌŵŐŽĂůƐĨŽƌŐƌŽǁƚŚ
ĂŶĚĚĞǀĞůŽƉŵĞŶƚ͘͘
ZĞŇĞĐƟŽŶ͗ Costs and Record Keeping
ŌĞƌĐŽŵƉŝůŝŶŐƚŚĞƉƌŽũĞĐƚĞĚĮŶĂŶĐŝĂůĮŐƵƌĞƐĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͕LJŽƵŵĂLJƐƚĂƌƚƚŽĨĞĞůŽǀĞƌǁŚĞůŵĞĚ
ĂďŽƵƚƚŚĞĞdžƉĞŶƐĞƐLJŽƵǁŝůůŝŶĐƵƌĂƐĂƉĂƌƚƚŚĞƐƚĂƌƚƵƉŽƌŽƉĞƌĂƟŽŶŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘dĂŬĞĂĨĞǁ
ŵŝŶƵƚĞƐƚŽƌĞǀŝƐŝƚŚĂƉƚĞƌƐϲΘϳ͘ƌĞƚŚĞƌĞĐŽƐƚƐƚŚĂƚLJŽƵŵĂLJďĞĂďůĞƚŽĐƵƚĚŽǁŶŽŶ͍tŚĂƚŽƚŚĞƌ
ƚŚŽƵŐŚƚƐĚŽLJŽƵŚĂǀĞĂďŽƵƚƚŚĞŽƌŐĂŶŝnjĂƟŽŶ͕ŽƉĞƌĂƟŽŶĂŶĚƐƚĂƌƚƵƉŽĨLJŽƵƌďƵƐŝŶĞƐƐ͕ŶŽǁƚŚĂƚLJŽƵ
ŚĂǀĞůĞĂƌŶĞĚŵŽƌĞĂďŽƵƚƌĞĐŽƌĚŝŶŐƚŚĞďƵƐŝŶĞƐƐƚƌĂŶƐĂĐƟŽŶƐ͘
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>> Funding your
Business

EŽŶͲDŽŶĞƚĂƌLJ&ƵŶĚŝŶŐ

10
>ŽĂŶƐĂŶĚ/ŶƚĞƌĞƐƚ
ƋƵŝƚLJ&ŝŶĂŶĐŝŶŐ
ŽƐƚŽĨĂƉŝƚĂů
&ƵŶĚŝŶŐzŽƵƌƵƐŝŶĞƐƐ
/ŶƚŚŝƐĐŚĂƉƚĞƌ͕LJŽƵǁŝůůďĞŝŶƚƌŽĚƵĐĞĚƚŽĚŝīĞƌĞŶƚĨƵŶĚŝŶŐŽƉƟŽŶƐĂŶĚůĞĂƌŶŚŽǁƚŽĞǀĂůƵĂƚĞ
ƚŚĞŵƚŽĚĞƚĞƌŵŝŶĞƚŚĞďĞƐƚǁĂLJƚŽĨƵŶĚLJŽƵƌďƵƐŝŶĞƐƐ͘tŚŝůĞĮŶĚŝŶŐƚŚĞĨƵŶĚŝŶŐĨŽƌƚŚĞ
ƐƚĂƌƚͲƵƉĐŽƐƚƐŽĨĂďƵƐŝŶĞƐƐĐĂŶďĞĂĐŚĂůůĞŶŐŝŶŐƚĂƐŬ͕ĞŶƚƌĞƉƌĞŶĞƵƌƐƵƐĞƚŚĞŝƌŬŶŽǁůĞĚŐĞ͕
ƐŬŝůůƐ͕ĂŶĚŵŽƟǀĂƟŽŶƚŽŵĞĞƚƚŚŝƐĐŚĂůůĞŶŐĞŚĞĂĚͲŽŶ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Principal:dŚĞĂŵŽƵŶƚŽĨůŽĂŶ ƌĞƐŽƵƌĐĞƐĨƌŽŵǀĂƌŝŽƵƐƐŽƵƌĐĞƐ
ŵŽŶĞLJďŽƌƌŽǁĞĚ͘ ;ůŽĂŶƐ͕ŝŶǀĞƐƚŽƌƐ͕ĞƚĐͿ͘

/ŶƚĞƌĞƐƚ͗dŚĞĐŽƐƚŽĨďŽƌƌŽǁŝŶŐ
ŵŽŶĞLJ͕ƵƐƵĂůůLJĐĂůĐƵůĂƚĞĚĂƐĂ
ƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞƉƌŝŶĐŝƉĂů͘

Partnership:dǁŽŽƌŵŽƌĞƉĞŽƉůĞ
ǁŚŽĐŽŵĞƚŽŐĞƚŚĞƌ͕ƉŽŽůŝŶŐƚŚĞŝƌ
ŵŽŶĞLJ͕ŬŶŽǁůĞĚŐĞ͕ƟŵĞ͕ĂŶĚŽƚŚĞƌ
ƌĞƐŽƵƌĐĞƐƚŽƐƚĂƌƚĂŶĚŽƉĞƌĂƚĞĂ
ďƵƐŝŶĞƐƐ͘

/ŶǀĞƐƚŽƌƐ͗WĞŽƉůĞǁŚŽĐŽŶƚƌŝďƵƚĞ
ŵŽŶĞLJŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐƚŽLJŽƵƌ
ďƵƐŝŶĞƐƐ͘/ŶǀĞƐƚŽƌƐƵƐƵĂůůLJĞdžƉĞĐƚƚŽ
ŵĂŬĞĂƉƌŽĮƚĨƌŽŵƚŚĞŝƌŝŶǀĞƐƚŵĞŶƚ
ĂŶĚŽŌĞŶůŽŽŬĨŽƌƚŚĞĂďŝůŝƚLJƚŽĂƐŬ
ĨŽƌƚŚĞŝƌŵŽŶĞLJďĂĐŬĂƚƐŽŵĞƉŽŝŶƚ
ŝŶƟŵĞ͘

Cost of Capital:dŚĞĐŽƐƚƚŽLJŽƵƌ
ďƵƐŝŶĞƐƐŽĨŽďƚĂŝŶŝŶŐŵŽŶĞLJĂŶĚ
 Lesson 10.1: Non-Monetary Funding
DĂŶLJƉĞŽƉůĞĂƐƐƵŵĞƚŚĂƚŵŽŶĞLJŝƐƌĞƋƵŝƌĞĚĨŽƌĂůůƉƵƌĐŚĂƐĞƐ͘,ŽǁĞǀĞƌ͕ŝƚŝƐƐŽŵĞƟŵĞƐŵŽƌĞďĞŶĞĮĐŝĂů
ƚŽďŽƚŚƉĂƌƟĞƐǁŚĞŶĂĚŝƌĞĐƚĞdžĐŚĂŶŐĞŽĨŐŽŽĚƐŽƌƐĞƌǀŝĐĞƐŽĐĐƵƌƐ͘&ŽƌŝŶƐƚĂŶĐĞ͕ŝĨLJŽƵŶĞĞĚƚŽďƵLJƐŽĂƉ
ĨŽƌLJŽƵƌĐůĞĂŶŝŶŐďƵƐŝŶĞƐƐ͕LJŽƵŵĂLJŽīĞƌƚŚĞůŽĐĂůƐŽĂƉƐĞůůĞƌĂŶĞdžĐŚĂŶŐĞŽĨĐůĞĂŶŝŶŐƚŚĞŝƌŽĸĐĞĨŽƌ
ƚŚĞƉƌŽĚƵĐƚƐLJŽƵŶĞĞĚ͘ĂƌƚĞƌŝŶŐŝƐƚŚĞƉƌŽĐĞƐƐŝŶǁŚŝĐŚŐŽŽĚƐŽƌƐĞƌǀŝĐĞƐĂƌĞĚŝƌĞĐƚůLJĞdžĐŚĂŶŐĞĚĨŽƌ
ŽƚŚĞƌŐŽŽĚƐĂŶĚͬŽƌƐĞƌǀŝĐĞƐǁŝƚŚŽƵƚƚŚĞĞdžĐŚĂŶŐĞŽĨŵŽŶĞLJ͘ĂƌƚĞƌŝŶŐĐĂŶďĞĚŽŶĞǁŝƚŚďƵƐŝŶĞƐƐĞƐ͕
ŶĞŝŐŚďŽƌƐ͕ĨƌŝĞŶĚƐĂŶĚĐŽŵŵƵŶŝƚLJŵĞŵďĞƌƐ͘ƐƉĞĐŝĂůůLJǁŚĞŶLJŽƵĂƌĞũƵƐƚďĞŐŝŶŶŝŶŐLJŽƵƌďƵƐŝŶĞƐƐ͕ŝƚ
ŵŝŐŚƚďĞŶĞĐĞƐƐĂƌLJƚŽƚŚŝŶŬŽĨǁĂLJƐƚŚĂƚLJŽƵĐĂŶďĂƌƚĞƌǁŝƚŚŽƚŚĞƌƐƚŽŽďƚĂŝŶƚŚĞƌĞƐŽƵƌĐĞƐLJŽƵŶĞĞĚ
ƐŝŶĐĞLJŽƵƌĐĂƐŚƌĞƐŽƵƌĐĞƐŵĂLJďĞǀĞƌLJůŝŵŝƚĞĚ͘ŶĂĚǀĂŶƚĂŐĞŽĨĞŶŐĂŐŝŶŐŝŶĂďĂƌƚĞƌŝŶŐƚƌĂŶƐĂĐƟŽŶŝƐ
ƚŚĂƚƚŚĞƉĞƌƐŽŶLJŽƵĂƌĞƚƌĂĚŝŶŐǁŝƚŚĚŽĞƐŶŽƚŶĞĞĚƚŽƌĞůLJŽŶĂƉƌŽŵŝƐĞĨƌŽŵLJŽƵƚŽŵĂŬĞƉĂLJŵĞŶƚŝŶƚŚĞ
ĨƵƚƵƌĞ͘dŚĞLJƵƐƵĂůůLJŽďƚĂŝŶǁŚĂƚƚŚĞLJǁĂŶƚʹƚŚĞŐŽŽĚƐŽƌƐĞƌǀŝĐĞƐLJŽƵƉƌŽǀŝĚĞʹĨƌŽŵLJŽƵŝŵŵĞĚŝĂƚĞůLJ
ǁŝƚŚŽƵƚŚĂǀŝŶŐƚŽǁŽƌƌLJƚŚĂƚƚŚĞLJŵŝŐŚƚĞŶĚƵƉǁŝƚŚŶŽƚŚŝŶŐĨƌŽŵƚŚŝƐƚƌĂŶƐĂĐƟŽŶ͘

Exercise 10.1: Bartering Examples

>ŝƐƚĂƚůĞĂƐƚƚŚƌĞĞŽƚŚĞƌĞdžĂŵƉůĞƐŽĨďĂƌƚĞƌŝŶŐ;ŽŶĞŽĨǁŚŝĐŚĐŽƵůĚďĞƵƐĞĚďLJLJŽƵƌďƵƐŝŶĞƐƐͿ͘

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Lesson 10.2: Loans and Interest

ŌĞƌLJŽƵŚĂǀĞĞdžŚĂƵƐƚĞĚĂůůďĂƌƚĞƌŝŶŐŽƉƉŽƌƚƵŶŝƟĞƐ͕LJŽƵŵĂLJƐƟůůŶĞĞĚƚŽďŽƌƌŽǁŵŽŶĞLJƚŽƐƚĂƌƚLJŽƵƌ
ďƵƐŝŶĞƐƐ͘DŽŶĞLJĐĂŶďĞďŽƌƌŽǁĞĚĨƌŽŵďĂŶŬƐ͕ĨƌŝĞŶĚƐ͕ŽƚŚĞƌďƵƐŝŶĞƐƐƉĞŽƉůĞĂŶĚĨĂŵŝůLJ͘/ŶŽƌĚĞƌƚŽ
ƐĞĐƵƌĞůŽĂŶƐĨƌŽŵŽƚŚĞƌƐ͕LJŽƵŵƵƐƚďĞĂďůĞƚŽĐŽŶǀŝŶĐĞƚŚĞŵƚŚĂƚLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂǁŝůůďĞĂƉƌŽĮƚĂďůĞ
ŽŶĞƐŝŶĐĞůĞŶĚĞƌƐŶŽƌŵĂůůLJĞdžƉĞĐƚƚŚĞůŽĂŶƚŽďĞƉĂŝĚďĂĐŬĂůŽŶŐǁŝƚŚŝŶƚĞƌĞƐƚ͘dŚŝƐŝƐǁŚĞƌĞƉƌŽũĞĐƟŽŶƐ
ďĞĐŽŵĞƵƐĞĨƵů͘zŽƵĐĂŶƐŚŽǁƉŽƚĞŶƟĂůůĞŶĚĞƌƐƚŚĂƚLJŽƵƌďƵƐŝŶĞƐƐǁŝůůŚĂǀĞƚŚĞĂďŝůŝƚLJƚŽƉĂLJƚŚĞŵďĂĐŬ
ďLJĐŽŵŝŶŐƵƉǁŝƚŚƌĞĂůŝƐƟĐĂŶĚďĞůŝĞǀĂďůĞƉƌŽũĞĐƟŽŶƐƚŚĂƚƐŚŽǁƉŽƐŝƟǀĞŽƉĞƌĂƟŶŐƌĞƐƵůƚƐ͘

tŚĞŶĐŽŶƐŝĚĞƌŝŶŐƚŚĞŽƉƟŽŶŽĨƚĂŬŝŶŐŽƵƚĂůŽĂŶ͕ĐŚĞĐŬLJŽƵƌƉƌŽũĞĐƟŽŶƐƚŽĞŶƐƵƌĞLJŽƵĐĂŶƉĂLJďĂĐŬ
LJŽƵƌ ůŽĂŶ ƉƌŝŶĐŝƉĂů ǁŝƚŚ ŝŶƚĞƌĞƐƚ ŝŶ ƚŚĞ ĚĞƐŝŐŶĂƚĞĚ ĂŵŽƵŶƚ ŽĨ ƟŵĞ͘  >ŽĂŶ ƉƌŝŶĐŝƉĂů ŝƐ ƚŚĞ ĂŵŽƵŶƚ ŽĨ
ŵŽŶĞLJ LJŽƵ ďŽƌƌŽǁ͘ >ŽĂŶ /ŶƚĞƌĞƐƚ ŝƐ ƚŚĞ ĞdžƉĞŶƐĞ ŽĨ ďŽƌƌŽǁŝŶŐ ŵŽŶĞLJ͘ /ŶƚĞƌĞƐƚ ŝƐ ƵƐƵĂůůLJ ƐƚĂƚĞĚ ĂƐ Ă
ƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞƉƌŝŶĐŝƉĂůĂŶĚƵƐƵĂůůLJĚĞƚĞƌŵŝŶĞĚƚŚƌŽƵŐŚŶĞŐŽƟĂƟŽŶƐďĞƚǁĞĞŶƚŚĞďŽƌƌŽǁĞƌĂŶĚ
ůĞŶĚĞƌ͘

Funding your Business | Doing | 157

 ^ŝŵƉůĞ/ŶƚĞƌĞƐƚ
/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽƵŶĚĞƌƐƚĂŶĚǁŚĂƚƐŝŵƉůĞŝŶƚĞƌĞƐƚŵĞĂŶƐǁŚĞŶLJŽƵĂƌĞĐŽŶƐŝĚĞƌŝŶŐďŽƌƌŽǁŝŶŐŵŽŶĞLJ͘
/ƚŝƐůŝŬĞůLJƚŚĂƚĂĚĞĂůǁŝƚŚĂĐŽŵŵƵŶŝƚLJŵĞŵďĞƌǁŝůůƵƐĞƐŝŵƉůĞŝŶƚĞƌĞƐƚ͘dŚĞĨŽůůŽǁŝŶŐĨŽƌŵƵůĂǁŝůůŚĞůƉ
LJŽƵĐĂůĐƵůĂƚĞƐŝŵƉůĞŝŶƚĞƌĞƐƚǁŚĞŶLJŽƵŬŶŽǁŚŽǁŵƵĐŚLJŽƵǁŝůůďŽƌƌŽǁ;ƉƌŝŶĐŝƉĂůͿ͕ƚŚĞŝŶƚĞƌĞƐƚƌĂƚĞĨŽƌ
LJŽƵƌŝŶƚĞƌĞƐƚĞdžƉĞŶƐĞ;ĂйŽĨƚŚĞůŽĂŶ͛ƐƉƌŝŶĐŝƉĂůͿ͕ĂŶĚŚŽǁůŽŶŐLJŽƵ͛ůůƚĂŬĞƚŽƉĂLJŝƚďĂĐŬ;ƟŵĞͿ͘

/ŶƚĞƌĞƐƚсWƌŝŶĐŝƉĂůdž/ŶƚĞƌĞƐƚZĂƚĞdždŝŵĞ

&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵďŽƌƌŽǁΨϱϬĨŽƌϯLJĞĂƌƐĂƚϱйƐŝŵƉůĞĂŶŶƵĂůŝŶƚĞƌĞƐƚĂŶĚLJŽƵǁĂŶƚĞĚƚŽŬŶŽǁƚŚĞ
ƚŽƚĂůĂŵŽƵŶƚLJŽƵǁŽƵůĚƉĂLJĨŽƌƚŚĞůŽĂŶ͕LJŽƵǁŽƵůĚĐĂůĐƵůĂƚĞŝƚŝŶƚŚĞĨŽůůŽǁŝŶŐǁĂLJ͗

/ŶƚĞƌĞƐƚсWƌŝŶĐŝƉĂůdž/ŶƚĞƌĞƐƚZĂƚĞdždŝŵĞ
Ψϳ͘ϱϬсϱϬdžϬ͘Ϭϱdžϯ

/ŶƚĞƌĞƐƚнWƌŝŶĐŝƉĂůсƚŽƚĂůĂŵŽƵŶƚLJŽƵǁŝůůƉĂLJĨŽƌƚŚĞůŽĂŶ
ϱϬнϳ͘ϱсΨϱϳ͘ϱϬ

Exercise 10.2: ĂůĐƵůĂƟŶŐ^ŝŵƉůĞ/ŶƚĞƌĞƐƚ

ƐƐƵŵĞLJŽƵďŽƌƌŽǁΨϮϱϬĨŽƌϭLJĞĂƌĂƚϲйƐŝŵƉůĞĂŶŶƵĂůŝŶƚĞƌĞƐƚ͘

tŚĂƚŝƐLJŽƵƌƉƌŝŶĐŝƉĂů͍

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tŚĂƚŝƐLJŽƵƌŝŶƚĞƌĞƐƚƌĂƚĞ͍

_______________________________________
tŚĂƚŝƐƚŚĞƟŵĞƉĞƌŝŽĚ͍

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,ŽǁŵƵĐŚŝŶƚĞƌĞƐƚǁŝůůLJŽƵƉĂLJŽǀĞƌƚŚĞƟŵĞƚŚĂƚLJŽƵŚĂǀĞƚŚĞůŽĂŶ͍

_______________________________________
,ŽǁŵƵĐŚǁŝůůLJŽƵƉĂLJŝŶƚŽƚĂůĨŽƌƚŚĞůŽĂŶ͍

_______________________________________

ŽŵƉŽƵŶĚ/ŶƚĞƌĞƐƚ
/ĨLJŽƵĐŚŽŽƐĞƚŽƚĂŬĞĂůŽĂŶĨƌŽŵĂďĂŶŬ͕ƚŚĞďĂŶŬǁŝůůůŝŬĞůLJĐŚĂƌŐĞĐŽŵƉŽƵŶĚŝŶƚĞƌĞƐƚ͘tŝƚŚĐŽŵƉŽƵŶĚ
ŝŶƚĞƌĞƐƚ͕ƚŚĞĂŵŽƵŶƚŽĨƵŶƉĂŝĚŝŶƚĞƌĞƐƚĂƚƚŚĞĞŶĚŽĨĂƉĞƌŝŽĚŝƐĂĚĚĞĚƚŽƚŚĞƉƌĞǀŝŽƵƐƉƌŝŶĐŝƉĂůďĂůĂŶĐĞ
ƚŽĐĂůĐƵůĂƚĞĂŶĞǁďĂůĂŶĐĞŽŶǁŚŝĐŚŝŶƚĞƌĞƐƚĨŽƌƚŚĞŶĞdžƚ ƉĞƌŝŽĚǁŝůůďĞĐĂůĐƵůĂƚĞĚ͘/ŶĞƐƐĞŶĐĞ͕LJŽƵƌ
ƉƌŝŶĐŝƉĂů ďĂůĂŶĐĞ ŝƐ ƌĞĐĂůĐƵůĂƚĞĚ ĂŌĞƌ ĞĂĐŚ ƟŵĞ ƉĞƌŝŽĚ Ͳ ĞǀĞƌLJ ĚĂLJ͕ ǁĞĞŬ͕ ŵŽŶƚŚ Žƌ LJĞĂƌ͘ ,ĞƌĞ͛Ɛ ĂŶ
ĞdžĂŵƉůĞŽĨŚŽǁĐŽŵƉŽƵŶĚŝŶƚĞƌĞƐƚǁŽƌŬƐ͘

/ŶƚĞƌĞƐƚLJĞĂƌϭсƉƌŝŶĐŝƉĂůdžŝŶƚĞƌĞƐƚƌĂƚĞdžƟŵĞ
/ŶƚĞƌĞƐƚLJĞĂƌϮс;ƉƌŝŶĐŝƉĂůϮсƉƌŝŶĐŝƉĂůϭнŝŶƚĞƌĞƐƚϭͿdžŝŶƚĞƌĞƐƚƌĂƚĞdžƟŵĞ
/ŶƚĞƌĞƐƚLJĞĂƌϯс;ƉƌŝŶĐŝƉĂůϯсƉƌŝŶĐŝƉĂůϮнŝŶƚĞƌĞƐƚϮͿdžŝŶƚĞƌĞƐƚƌĂƚĞdžƟŵĞ

&ŽƌĞdžĂŵƉůĞ͕ŝĨLJŽƵďŽƌƌŽǁΨϱϬĨŽƌϯLJĞĂƌƐĂƚϲйŝŶƚĞƌĞƐƚĐŽŵƉŽƵŶĚĞĚĂŶŶƵĂůůLJ;LJĞĂƌůLJͿ͕ƚŚĞĐĂůĐƵůĂƟŽŶ
ŽĨƚŚĞĐŽŵƉŽƵŶĚŝŶƚĞƌĞƐƚǁŝůůďĞĂƐĨŽůůŽǁƐ͗

158 | Doing | Funding your Business

 /ŶƚĞƌĞƐƚLJĞĂƌϭсƉƌŝŶĐŝƉĂůdžŝŶƚĞƌĞƐƚƌĂƚĞdžƟŵĞ
ϯ͘ϬϬсϱϬdž͘Ϭϲdžϭ

/ŶƚĞƌĞƐƚLJĞĂƌϮс;ƉƌŝŶĐŝƉĂůϮсƉƌŝŶĐŝƉĂůϭнŝŶƚĞƌĞƐƚϭͿdžŝŶƚĞƌĞƐƚƌĂƚĞdžƟŵĞ
ϯ͘ϭϴс;ϱϬнϯ͘ϬϬͿdž͘Ϭϲdžϭ

/ŶƚĞƌĞƐƚLJĞĂƌϯс;ƉƌŝŶĐŝƉĂůϯсƉƌŝŶĐŝƉĂůϮнŝŶƚĞƌĞƐƚϮͿdžŝŶƚĞƌĞƐƚƌĂƚĞdžƟŵĞ
ϯ͘ϯϳс;ϱϯнϯ͘ϭϴͿdž͘Ϭϲdžϭ

/ŶƚĞƌĞƐƚнWƌŝŶĐŝƉĂůсƚŽƚĂůĂŵŽƵŶƚLJŽƵǁŝůůƉĂLJ
ϱϬнϯ͘ϬϬнϯ͘ϭϴнϯ͘ϯϳсΨϱϵ͘ϱϱ

ŽŶƚƌĂƐƚƚŚŝƐǁŝƚŚƚŚĞƚŽƚĂůĂŵŽƵŶƚLJŽƵǁŽƵůĚŽǁĞŝĨƐŝŵƉůĞŝŶƚĞƌĞƐƚŝƐƵƐĞĚŝŶƐƚĞĂĚ͗
ΨϱϬdž͘ϬϲdžϯсΨϵ͘ϬϬ͕ŽƌĂƚŽƚĂůďĂůĂŶĐĞŽǁĞĚŽĨΨϱϵ͘ϬϬ͘

Exercise 10.3: ĂůĐƵůĂƟŶŐŽŵƉŽƵŶĚ/ŶƚĞƌĞƐƚ

zŽƵďŽƌƌŽǁΨϮϱϬĨŽƌϱLJĞĂƌƐĂƚϲйĂŶŶƵĂůŝŶƚĞƌĞƐƚĐŽŵƉŽƵŶĚĞĚĂŶŶƵĂůůLJ͘

tŚĂƚŝƐLJŽƵƌƉƌŝŶĐŝƉĂů͍

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tŚĂƚŝƐLJŽƵƌŝŶƚĞƌĞƐƚƌĂƚĞ͍

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tŚĂƚŝƐƚŚĞƟŵĞƉĞƌŝŽĚ͍

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,ŽǁŵƵĐŚŝŶƚĞƌĞƐƚǁŝůůLJŽƵƉĂLJŽǀĞƌƚŚĞƟŵĞƚŚĂƚLJŽƵŚĂǀĞƚŚĞůŽĂŶ͍

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,ŽǁŵƵĐŚǁŝůůLJŽƵƉĂLJŝŶƚŽƚĂůĨŽƌƚŚĞůŽĂŶ͍

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Lesson 10.3: Equity Financing

ŶŽƚŚĞƌ ǁĂLJ ƚŽ ĨƵŶĚ LJŽƵƌ ďƵƐŝŶĞƐƐ ŝƐ ƚŚƌŽƵŐŚ ǁŚĂƚ ŝƐ ĐĂůůĞĚ ͞ĞƋƵŝƚLJ ĮŶĂŶĐŝŶŐ͘͟ hŶůŝŬĞ Ă ůŽĂŶ ǁŚĞƌĞ
LJŽƵŵĂŬĞƌĞŐƵůĂƌƉƌŝŶĐŝƉĂůĂŶĚŝŶƚĞƌĞƐƚƉĂLJŵĞŶƚƐƵŶƟůƚŚĞĂŵŽƵŶƚLJŽƵďŽƌƌŽǁĞĚŝƐƌĞƉĂŝĚ͕ŝŶĞƋƵŝƚLJ
ĮŶĂŶĐŝŶŐ͕͞ŝŶǀĞƐƚŽƌƐ͟Žƌ͞ƉĂƌƚŶĞƌƐ͟ƉƵƚŵŽŶĞLJŝŶƚŽLJŽƵƌďƵƐŝŶĞƐƐŝŶĞdžĐŚĂŶŐĞĨŽƌĂƐŚĂƌĞŽĨŝƚƐƉƌŽĮƚƐĂŶĚ
ĂƐĂLJŝŶƚŚĞĚĂLJͲƚŽͲĚĂLJŽƉĞƌĂƟŽŶƐŽĨƚŚĞďƵƐŝŶĞƐƐ͘/ŶŽƚŚĞƌǁŽƌĚƐ͕ƚŚŽƐĞǁŚŽƉƌŽǀŝĚĞĞƋƵŝƚLJĮŶĂŶĐŝŶŐ
ďĞĐŽŵĞ ƉĂƌƚ ŽǁŶĞƌƐ ŽĨ ƚŚĞ ďƵƐŝŶĞƐƐ͘ dŚĞ ŝŶǀĞƐƚŽƌƐ ƌĞĐĞŝǀĞ ƚŚĞŝƌ ƉƌŽĮƚ ;ƌĞƚƵƌŶͿ ĨƌŽŵ ĚŝƐƚƌŝďƵƟŽŶƐ ŽĨ
ƚŚĞƉƌŽĮƚƐĨƌŽŵƚŚĞďƵƐŝŶĞƐƐ͕ŽƌǁŚĞŶƚŚĞLJƐĞůůŽƌƌĞĚĞĞŵƚŚĞŝƌŽǁŶĞƌƐŚŝƉŝŶƚĞƌĞƐƚŝŶLJŽƵƌďƵƐŝŶĞƐƐ
ĨŽƌŵŽƌĞƚŚĂŶŝƚǁĂƐǁŽƌƚŚǁŚĞŶƚŚĞLJŐĂǀĞLJŽƵƚŚĞŵŽŶĞLJ͘/ŶǀĞƐƚŽƌƐŽŌĞŶĐŽŶƚƌŝďƵƚĞŵŽŶĞLJŽƌŽƚŚĞƌ
ƌĞƐŽƵƌĐĞƐƚŽLJŽƵƌďƵƐŝŶĞƐƐŽŶůLJŝŶĞdžĐŚĂŶŐĞĨŽƌĂƐŚĂƌĞŽĨLJŽƵƌƉƌŽĮƚƐǁŝƚŚŽƵƚŐĞƫŶŐŝŶǀŽůǀĞĚŝŶƚŚĞ
ĚĂLJͲƚŽͲĚĂLJŽƉĞƌĂƟŽŶƐŽĨƚŚĞďƵƐŝŶĞƐƐ͘,ŽǁĞǀĞƌ͕ŝŶĂƉĂƌƚŶĞƌƐŚŝƉ͕ƚǁŽŽƌŵŽƌĞƉĞŽƉůĞƉŽŽůƚŚĞŝƌŵŽŶĞLJ
ĂŶĚͬŽƌƐĞƌǀŝĐĞƐƚŽŐĞƚŚĞƌƚŽĨŽƌŵĂŶĞǁŬŝŶĚŽĨĞŶƟƚLJŝŶǁŚŝĐŚĂůůďŽƚŚŽǁŶĂŶĚĐŽͲŵĂŶĂŐĞƚŚĞďƵƐŝŶĞƐƐ͘
ůƚŚŽƵŐŚĨŽƌŵŝŶŐĂƉĂƌƚŶĞƌƐŚŝƉŵĞĂŶƐƚŚĂƚLJŽƵŵƵƐƚŐŝǀĞƵƉƐŽŵĞĐŽŶƚƌŽůŽǀĞƌLJŽƵƌďƵƐŝŶĞƐƐ͕LJŽƵƌ
ƉĂƌƚŶĞƌ;ƐͿŵĂLJďƌŝŶŐŬŶŽǁůĞĚŐĞ͕ƐŬŝůůƐ͕ŽƌŽƚŚĞƌŶĞĞĚĞĚƌĞƐŽƵƌĐĞƐƚŽƚŚĞďƵƐŝŶĞƐƐƚŚĂƚŽƚŚĞƌǁŝƐĞŵŝŐŚƚ
ŶŽƚďĞƚŚĞƌĞ͘

Funding your Business | Doing | 159

 Exercise 10.4: Equity Financing
/ŶƚŚĞƐƉĂĐĞďĞůŽǁĐŽŵƉĂƌĞĞƋƵŝƚLJĮŶĂŶĐŝŶŐǁŝƚŚďŽƌƌŽǁŝŶŐŵŽŶĞLJƚŽƐƚĂƌƚĂďƵƐŝŶĞƐƐ

tŚĂƚĂƌĞƐŽŵĞŽĨƚŚĞĂĚǀĂŶƚĂŐĞƐĂŶĚĚŝƐĂĚǀĂŶƚĂŐĞƐŽĨĞĂĐŚ͍

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tŚŝĐŚĚŽLJŽƵƚŚŝŶŬǁŝůůǁŽƌŬďĞƐƚĨŽƌLJŽƵƌďƵƐŝŶĞƐƐĂŶĚǁŚLJ͍

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Lesson 10.4: Cost of Capital

͞ĂƉŝƚĂů͟ ŝƐ Ă ƚĞƌŵ ƵƐĞĚ ƚŽ ƌĞĨĞƌ ƚŽ Ăůů ŽĨ ƚŚĞ ƌĞƐŽƵƌĐĞƐ LJŽƵ ǁŝůů ŶĞĞĚ ƚŽ ŽƉĞƌĂƚĞ LJŽƵƌ ďƵƐŝŶĞƐƐ ĂŶĚ
ŐĞŶĞƌĂƚĞ Ă ƉƌŽĮƚ͘ dŚŝƐ ƚLJƉŝĐĂůůLJ ŝŶĐůƵĚĞƐ ĐĂƐŚ͕ ďƵƚ ĂůƐŽ ƌĞĨĞƌƐ ƚŽ Ăůů ŽƚŚĞƌ ƚLJƉĞƐ ŽĨ ƌĞƐŽƵƌĐĞƐ ƐƵĐŚ ĂƐ
ŝŶǀĞŶƚŽƌLJ ĂŶĚ ƉƌŽƉĞƌƚLJ͘ Ɛ ǁĞ ŚĂǀĞ ƐĞĞŶ ĂůƌĞĂĚLJ ŝŶ ƚŚŝƐ ĐŚĂƉƚĞƌ͕ ƚŚĞƌĞ ĂƌĞ ŵĂŶLJ ĨƵŶĚŝŶŐ ŽƉƟŽŶƐ
ĂǀĂŝůĂďůĞĨŽƌƐŵĂůůďƵƐŝŶĞƐƐĞƐƚŽĂĐƋƵŝƌĞŶĞĞĚĞĚĐĂƉŝƚĂů͘,ŽǁĞǀĞƌ͕ŶŽƚĂůůĨƵŶĚŝŶŐŽƉƟŽŶƐĐŽƐƚƚŚĞƐĂŵĞ͘
ůŽĂŶĨƌŽŵĂďĂŶŬƚŚĂƚĐŚĂƌŐĞƐŝŶƚĞƌĞƐƚǁŝůůŶŽƚĐŽƐƚƚŚĞƐĂŵĞĂƐĂŶŝŶǀĞƐƚŽƌǁŚŽŐŝǀĞƐLJŽƵƌďƵƐŝŶĞƐƐ
ŵŽŶĞLJ ŝŶ ĞdžĐŚĂŶŐĞ ĨŽƌ Ă ƐŚĂƌĞ ŽĨ ƚŚĞ ƉƌŽĮƚƐ͘ dŚĞƐĞ ĐŽƐƚƐ ĐĂŶ ďĞ ĐĂůĐƵůĂƚĞĚ͘ ,ŽǁĞǀĞƌ͕ ŝŶƚĞƌĞƐƚ ĂŶĚ
ƉƌŽĮƚͲƐŚĂƌŝŶŐĂƌĞŶŽƚƚŚĞŽŶůLJ͞ĐŽƐƚƐ͟LJŽƵŶĞĞĚƚŽĐŽŶƐŝĚĞƌ͘'ŝǀŝŶŐƵƉƐŽŵĞĐŽŶƚƌŽůŽǀĞƌLJŽƵƌďƵƐŝŶĞƐƐ
ŝƐĂŶŽŶͲĮŶĂŶĐŝĂůĐŽƐƚƚŚĂƚƐŚŽƵůĚĂůƐŽďĞĐŽŶƐŝĚĞƌĞĚ͘zŽƵŵƵƐƚĂůƐŽĂƐƐĞƐƐƚŚĞƌŝƐŬƚŚĂƚŐŽĞƐǁŝƚŚĞĂĐŚ
ƐŽƵƌĐĞŽĨĨƵŶĚŝŶŐ͘/ĨLJŽƵƌďƵƐŝŶĞƐƐĚŽĞƐŶŽƚĚŽƐŽǁĞůůŝŶŝƚƐĮƌƐƚLJĞĂƌŽƌƚǁŽ͕ĂďĂŶŬƚŚĂƚƌĞƋƵŝƌĞƐĮdžĞĚ
ůŽĂŶƉĂLJŵĞŶƚƐŵĂLJďĞůĞƐƐĨŽƌŐŝǀŝŶŐƚŚĂŶĂĨĂŵŝůLJŵĞŵďĞƌǁŚŽŝŶǀĞƐƚĞĚŵŽŶĞLJ͘dŚĞĨŽůůŽǁŝŶŐĞdžĞƌĐŝƐĞ
ŚĞůƉƐLJŽƵƚŽƚŚŝŶŬĂďŽƵƚƐŽŵĞŽĨƚŚĞƚŚŝŶŐƐLJŽƵƐŚŽƵůĚĐŽŵƉĂƌĞǁŚĞŶĐŽŶƐŝĚĞƌŝŶŐƚŚĞĐŽƐƚŽĨŽďƚĂŝŶŝŶŐ
ĐĂƉŝƚĂů͘

160 | Doing | Funding your Business

 Exercise 10.5: ŽŵƉĂƌŝŶŐ&ƵŶĚŝŶŐKƉƟŽŶƐ
dŽƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐ͕LJŽƵĐĂůĐƵůĂƚĞƚŚĂƚLJŽƵǁŝůůŶĞĞĚΨϭ͕ϬϬϬƚŽƉƵƌĐŚĂƐĞĞƋƵŝƉŵĞŶƚ͘zŽƵŐŽƚŽLJŽƵƌůŽĐĂůďĂŶŬĂŶĚƌĞƋƵĞƐƚĂůŽĂŶĨŽƌ
Ψϭ͕ϬϬϬ͘dŚĞďĂŶŬŐŝǀĞƐLJŽƵƚŚĞĨŽůůŽǁŝŶŐƚĞƌŵƐ͗

ͻ/ŶƚĞƌĞƐƚZĂƚĞ͗ϭϬй;ĐŽŵƉŽƵŶĚĞĚĂŶŶƵĂůůLJͿ
ͻZĞƉĂLJŵĞŶƚdŝŵĞůŝŶĞ͗ϭϬLJĞĂƌƐ
ͻWĂLJŵĞŶƚǁŝůůďĞŵĂĚĞĂŶŶƵĂůůLJ͕ǁŝƚŚĂŶĞƋƵĂůƉĂLJŵĞŶƚĞĂĐŚLJĞĂƌ͘dŚĞƉĂLJŵĞŶƚǁŝůůĮƌƐƚďĞĂƉƉůŝĞĚƚŽƚŚĞŝŶƚĞƌĞƐƚĚƵĞĨŽƌƚŚĞLJĞĂƌ
ĂŶĚƚŚĞŶƚŽƚŚĞƉƌŝŶĐŝƉĂů͘
ͻĂƐĞĚŽŶƚŚĞƐĞƚĞƌŵƐ͕ƚŚĞďĂŶŬĐĂůĐƵůĂƚĞƐƚŚĂƚĂŶĂŶŶƵĂůƉĂLJŵĞŶƚŽĨΨϭϲϯǁŝůůƌĞƟƌĞƚŚĞůŽĂŶĂƚƚŚĞĞŶĚŽĨϭϬLJĞĂƌƐ͘

zŽƵƚŚŝŶŬƚŚĂƚƉĞƌŚĂƉƐLJŽƵĐĂŶŐĞƚĂůŽǁĞƌŝŶƚĞƌĞƐƚƌĂƚĞƚŚĂŶƚŚŝƐĨƌŽŵĂŶŽƚŚĞƌůĞŶĚĞƌ͕ƐŽŝŶƐƚĞĂĚŽĨĂƵƚŽŵĂƟĐĂůůLJƚĂŬŝŶŐƚŚĞďĂŶŬůŽĂŶ͕
LJŽƵŐŽƚŽĂĨĂŵŝůLJĨƌŝĞŶĚ;ĂŶŝŶǀĞƐƚŽƌͿĂŶĚĂƐŬŝĨŚĞǁŽƵůĚďĞǁŝůůŝŶŐƚŽůŽĂŶLJŽƵƌďƵƐŝŶĞƐƐΨϭ͕ϬϬϬƚŽƐƚĂƌƚͲƵƉ͘,ĞǁŝůůĚŽƚŚŝƐ͕ďƵƚŝŶƌĞƚƵƌŶ
ŚĞǁŝůůĞdžƉĞĐƚƚŽƌĞĐĞŝǀĞϭϬйŽĨĂůůƚŚĞƉƌŽĮƚƐŵĂĚĞďLJƚŚĞďƵƐŝŶĞƐƐĨŽƌĞĂĐŚŽĨƚŚĞŶĞdžƚƚĞŶLJĞĂƌƐ͘KǀĞƌƚŚĞŶĞdžƚϭϬLJĞĂƌƐ͕LJŽƵƉƌŽũĞĐƚ
ƚŚĂƚƚŚĞƉƌŽĮƚƐĂŶĚůŽƐƐĞƐĨŽƌƚŚĞďƵƐŝŶĞƐƐǁŝůůďĞĂƐĨŽůůŽǁƐ͗

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
ΨϭϬϬ ΨϮϬϬ ΨϯϬϬ ΨϬ ΨϮϬϬ ΨϱϬϬ ΨϴϬϬ Ψϭ͕ϬϬϬ Ψϭ͕ϱϬϬ ΨϮ͕ϬϬϬ

hƐŝŶŐƚŚĞƐĞĂƐƐƵŵƉƟŽŶƐ͕ĐĂůĐƵůĂƚĞƚŚĞŽƐƚŽĨĂƉŝƚĂůĨŽƌďŽƚŚƚŚĞΨϭϬ͕ϬϬϬďĂŶŬůŽĂŶĂŶĚƚŚĞΨϭϬ͕ϬϬϬĞƋƵŝƚLJŝŶǀĞƐƚŵĞŶƚĨƌŽŵLJŽƵƌ
ĨĂŵŝůLJĨƌŝĞŶĚ͘ŽŶ͛ƚǁŽƌƌLJĂďŽƵƚĐĂůĐƵůĂƟŶŐĐŽƐƚŽĨƚŚĞůŽĂŶĨŽƌĞĂĐŚLJĞĂƌďĞůŽǁ͕ďƵƚƵƐŝŶŐƚŚĞŝŶĨŽƌŵĂƟŽŶĂďŽǀĞLJŽƵƐŚŽƵůĚďĞĂďůĞƚŽ
ĐĂůĐƵůĂƚĞƚŚĞĐŽƐƚŽĨƚŚĞůŽĂŶŽǀĞƌƚŚĞĞŶƟƌĞƚĞŶͲLJĞĂƌƉĞƌŝŽĚ͘

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total

>ŽĂŶ
ΨϭϬϬ
Cost

ƋƵŝƚLJ
ΨϭϬ ΨϬ
Cost

,ŽǁŵƵĐŚǁŽƵůĚƚŚĞďĂŶŬůŽĂŶĐŽƐƚLJŽƵŝŶƚŽƚĂůŝŶƚĞƌĞƐƚ͍,ŽǁŵƵĐŚǁŽƵůĚƚŚĞŝŶǀĞƐƚŵĞŶƚĨƌŽŵLJŽƵƌĨĂŵŝůLJĨƌŝĞŶĚĐŽƐƚLJŽƵ͍ŝƐĐƵƐƐ
ǁŚŝĐŚŽƉƟŽŶLJŽƵǁŽƵůĚďĞŝŶĐůŝŶĞĚƚŽƉƵƌƐƵĞ͘ZĞŵĞŵďĞƌƚŽƚŚŝŶŬďĞLJŽŶĚƚŚĞŶƵŵďĞƌƐĂŶĚĐŽŶƐŝĚĞƌ>>ĨĂĐƚŽƌƐƐƵĐŚĂƐƌŝƐŬĂŶĚĞĂƐĞ
ŽĨŽďƚĂŝŶŝŶŐƚŚĞŵŽŶĞLJ͘

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ŌĞƌϭϬLJĞĂƌƐ͕LJŽƵƌĐŽƐƚĨŽƌƵƐŝŶŐƚŚĞŝŶǀĞƐƚŽƌ͛ƐΨϭ͕ϬϬϬŝƐ $660.,ĂĚLJŽƵƚĂŬĞŶƚŚĞďĂŶŬ͛ƐŽīĞƌ͕ƚŚĞƚŽƚĂůĂŵŽƵŶƚŽĨŝŶƚĞƌĞƐƚǁŽƵůĚŚĂǀĞ
been $630͘^ŽƚŚĞďĂŶŬůŽĂŶŝƐƚŚĞďĞƩĞƌĚĞĂů͕ƌŝŐŚƚ͍tĞůů͕ƚŚĂƚĚĞƉĞŶĚƐ͘ůƚŚŽƵŐŚLJŽƵƌĮŶĂŶĐŝĂůĐŽƐƚŽĨĐĂƉŝƚĂůǁĂƐŚŝŐŚĞƌƵƐŝŶŐLJŽƵƌ
ĨĂŵŝůLJĨƌŝĞŶĚ͛ƐŵŽŶĞLJ͕ŝƚǁĂƐůĞƐƐƌŝƐŬLJƚŚĂŶƚĂŬŝŶŐƚŚĞďĂŶŬ͛ƐůŽĂŶ͘dŚŝƐŝƐďĞĐĂƵƐĞŚĂĚLJŽƵƌďƵƐŝŶĞƐƐƉĞƌĨŽƌŵĞĚƉŽŽƌůLJ;ĂƐŝƚĚŝĚŝŶzĞĂƌ
ϰͿ͕ƚŚĞŝŶǀĞƐƚŽƌ͛ƐƐŚĂƌĞŽĨƉƌŽĮƚƐǁŽƵůĚŚĂǀĞƐŝŵƉůLJĚĞĐƌĞĂƐĞĚƚŽnjĞƌŽ͘dŚĞďĂŶŬ͕ŽŶƚŚĞŽƚŚĞƌŚĂŶĚ͕ǁŽƵůĚŚĂǀĞƐƟůůĐŚĂƌŐĞĚLJŽƵƚŚĞ
ƐĂŵĞΨϭϲϯƉĞƌLJĞĂƌ͕ǁŚŝĐŚLJŽƵŵĂLJŶŽƚŚĂǀĞďĞĞŶĂďůĞƚŽƉĂLJ͘ŶĚĂƐLJŽƵŵŝŐŚƚŚĂǀĞŐƵĞƐƐĞĚ͕ĨĂŝůŝŶŐƚŽƉĂLJďĂĐŬĂďĂŶŬůŽĂŶĐĂŶŵĞĂŶ
ƚŚĂƚLJŽƵƌďƵƐŝŶĞƐƐŵĂLJĂĐƚƵĂůůLJďĞƐŚƵƚĚŽǁŶ͘

/ŶƚŚĞĂďŽǀĞƐĐĞŶĂƌŝŽ͕ƚŚĞĐŽƐƚƐǁĞƌĞĨĂŝƌůLJƐŝŵŝůĂƌďĞƚǁĞĞŶĞƋƵŝƚLJ;ŝŶǀĞƐƚŽƌͿĂŶĚĚĞďƚ;ďĂŶŬůŽĂŶͿĮŶĂŶĐŝŶŐ͘ƵƚŝŶƚŚĞƌĞĂůǁŽƌůĚ͕ƚŚĞ
ĐŽƐƚƐǁŝůůƉƌŽďĂďůLJĚŝīĞƌďLJŵƵĐŚŵŽƌĞ͘dŚŝƐŝƐǁŚLJŝƚ͛ƐŝŵƉŽƌƚĂŶƚƚŽĐĂůĐƵůĂƚĞƚŚĞĐŽƐƚŽĨĞĂĐŚŽƉƟŽŶ͕ĂŶĚĐŽŶƐŝĚĞƌĂƐŵĂŶLJĨĂĐƚŽƌƐĂƐ
ƉŽƐƐŝďůĞŝŶLJŽƵƌĚĞĐŝƐŝŽŶ͘

Funding your Business | Doing | 161

 Exercise 10.6: ZĞǀŝƐŝƟŶŐEĞĞĚƐǀƐ͘tĂŶƚƐ
Part A: ƚĮƌƐƚ͕^ĂŵƵĞůΘ'ƌĂĐĞ͛ƐĨƌŝĞŶĚŚĂƐĚĞƚĞƌŵŝŶĞĚƚŚĂƚƚŚĞLJǁŝůůŶĞĞĚĂĐĂƌƚŽƚƌĂŶƐƉŽƌƚ
ƚŚĞƚƌĂƐŚ͕ĂŶŽĸĐĞĨŽƌƉĞŽƉůĞƚŽĐŽŵĞƚŽƐĐŚĞĚƵůĞƉŝĐŬƵƉƐ͕ĐůĞĂŶŝŶŐƐƵƉƉůŝĞƐŝŶĐůƵĚŝŶŐďĂŐƐĂŶĚ
ŵĂƌŬĞƟŶŐŵĂƚĞƌŝĂůƐŝŶŽƌĚĞƌƚŽďĞŐŝŶƚŚŝƐďƵƐŝŶĞƐƐ͘sĞƌLJƋƵŝĐŬůLJ͕ƚŚĞLJďĞŐĂŶƚŽƚŚŝŶŬƚŚĂƚƚŚĞLJ
ǁŽƵůĚŶŽƚďĞĂďůĞƚŽƐƚĂƌƚƚŚŝƐďƵƐŝŶĞƐƐ͕ďĞĐĂƵƐĞƚŚĞLJĐŽƵůĚŶŽƚĂīŽƌĚƚŚĞƐĞƚŚŝŶŐƐ͘

EŽƚǁĂŶƟŶŐƚŚĞŵƚŽŐŝǀĞƵƉ͕^ĂŵƵĞůƐƚĂƌƚĞĚƚŽƚŚŝŶŬĂďŽƵƚƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶǁĂŶƚƐĂŶĚ
ŶĞĞĚƐ͕ǁŚŝĐŚŚĞůĞĂƌŶĞĚŝŶŚĂƉƚĞƌϳ͘^ĂŵƵĞůĚĞƚĞƌŵŝŶĞĚƚŚĂƚĂůƚŚŽƵŐŚƚŚĞLJŵŝŐŚƚǁĂŶƚĂĐĂƌƚŽ
ƚƌĂŶƐƉŽƌƚƚŚĞǁĂƐƚĞ͕ƚŚĞLJĚŝĚŶŽƚŶĞĞĚŝƚƚŽďĞŐŝŶƐŵĂůůŝŶƚŚĞŝƌĐůŽƐĞĐŽŵŵƵŶŝƚLJ͘'ƌĂĐĞ͛ƐďƌŽƚŚĞƌ͕
dŚŽŵĂƐ͕ ǁŽƌŬĞĚ Ăƚ Ă ĐůĞĂŶŝŶŐ ƐƵƉƉůLJ ƐƚŽƌĞ͕ ĂŶĚ ŚĞůƉĞĚ ƚŚĞŵ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ƉƌŝĐŝŶŐ ŽĨ ƚŚĞŝƌ
ƌĞƋƵŝƌĞĚƐƵƉƉůŝĞƐ͘^ƵĚĚĞŶůLJ͕ƚŚĞĨƌŝĞŶĚďĞŐĂŶƚŽƐĞĞƚŚĂƚƚŚĞLJĂůƐŽǁŽƵůĚŶ͛ƚŶĞĞĚĂŶŽĸĐĞƵŶƟů
ƚŚĞŝƌďƵƐŝŶĞƐƐŐƌĞǁƐŝŐŶŝĮĐĂŶƚůLJʹƚŚĞLJŚĂĚůĞĂƌŶĞĚŝŶƚŚĞŝƌŵĂƌŬĞƚƌĞƐĞĂƌĐŚƚŚĂƚƉĞŽƉůĞĚŝĚŶŽƚ
ǁĂŶƚƚŽĐŽŵĞƚŽƚŚĞŵďƵƚƌĂƚŚĞƌƉƌĞĨĞƌƌĞĚƚŚĂƚĂƌĞƉƌĞƐĞŶƚĂƟǀĞǀŝƐŝƚƚŚĞĐůŝĞŶƚ͘

dŚŝƐ ůĞŌ ƚŚĞŵ ƚŽ ĮŶĚ ĨƵŶĚŝŶŐ ĨŽƌ ƚŚĞ ĐůĞĂŶŝŶŐ ƐƵƉƉůŝĞƐ ĂŶĚ ŵĂƌŬĞƟŶŐ ŵĂƚĞƌŝĂůƐ͘ dŚŝƐ ŵĂĚĞ
^ĂŵƵĞůĂŶĚ'ƌĂĐĞ͛ƐĨƌŝĞŶĚĨĞĞůƐďĞƩĞƌĂďŽƵƚƚŚĞĂŵŽƵŶƚŽĨŵŽŶĞLJƚŚĞLJǁŽƵůĚŶĞĞĚĨŽƌƐƚĂƌƚƵƉ
ĐĂƉŝƚĂůďƵƚƚŚĞLJƐƟůůĚŝĚŶŽƚŚĂǀĞĂŶLJŽĨƚŚĞŝƌŽǁŶŵŽŶĞLJƚŽŐĞƚƚŚĞďƵƐŝŶĞƐƐŐŽŝŶŐ͘^ĂŵƵĞůĂŶĚ
'ƌĂĐĞ ĚĞĐŝĚĞĚ ƚŚĂƚ ƚŚĞLJ ǁŽƵůĚ ŵĂŬĞ Ă ůŝƐƚ ŽĨ Ăůů ƉŽƐƐŝďůĞ ŽƉƟŽŶƐ ĨŽƌ ŽďƚĂŝŶŝŶŐ ƚŚĞƐĞ ƚŚŝŶŐƐ͕
ŵĂŬŝŶŐƐƵƌĞƚŚĂƚƚŚĞLJƌĞĨĞƌƌĞĚďĂĐŬƚŽWĂƌƚ/ŽĨƚŚŝƐǁŽƌŬŬƚŽĐŽŶƐŝĚĞƌƚŚĞŝƌŽǁŶƌĞƐŽƵƌĐĞƐ
ĂŶĚƐŬŝůůƐĂƐǁĞůůĂƐƚŚĞŝƌŶĞƚǁŽƌŬ͛ƐƌĞƐŽƵƌĐĞƐ͘

tŚĂƚĂƌĞƐŽŵĞŽƉƟŽŶƐƚŚĂƚ^ĂŵƵĞů͕'ƌĂĐĞ͕ĂŶĚƚŚĞŝƌĨƌŝĞŶĚŵŝŐŚƚƉƵƚŽŶƚŚĞŝƌůŝƐƚŽĨƉŽƐƐŝďůĞ
ƐŽƵƌĐĞƐĨŽƌƚŚĞŝƌŶĞĞĚĞĚĨƵŶĚŝŶŐ͍DĂŬĞƐƵƌĞLJŽƵĐŽŶƐŝĚĞƌǁŚŽƚŚĞLJŬŶŽǁĂŶĚǁŚĂƚƚŚĞLJŶĞĞĚ͘

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,ŽǁŵŝŐŚƚ^ĂŵƵĞůŽƌ'ƌĂĐĞ͛ƐĨƌŝĞŶĚŚĞůƉ͍tŚĂƚŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌďĂƌƚĞƌŝŶŐĚŽLJŽƵƐĞĞ͍

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džƉůĂŝŶǁŚLJ^ĂŵƵĞůĚĞƚĞƌŵŝŶĞĚŚĞǁŽƵůĚŶŽƚŶĞĞĚƚŽĨƵŶĚĂŶŽĸĐĞŽƌĂƚƌƵĐŬ͘

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Part B:^ĂŵƵĞůĂŶĚ'ƌĂĐĞĚĞƚĞƌŵŝŶĞĚƚŚĂƚƚŚĞLJǁŽƵůĚďĞĂďůĞƚŽƐŽůǀĞƚŚĞŝƌĨƌŝĞŶĚ͛ƐŶĞĞĚĨŽƌ
ŵĂƌŬĞƟŶŐŵĂƚĞƌŝĂůƐďĂƐĞĚŽŶƚŚĞůŝƐƚŝŶWĂƌƚʹ'ƌĂĐĞ͛ƐďƌŽƚŚĞƌǁĂƐĂďůĞƚŽƚĂůŬƚŽŚŝƐŵĂŶĂŐĞƌ
ĂŶĚůŽĂŶƚŚĞŵĂƚĞƌŝĂůƐƚŽƚŚĞŵƵŶƟůƚŚĞLJƐƚĂƌƚĞĚŵĂŬŝŶŐŵŽŶĞLJ͊dŚĞLJŶŽǁŶĞĞĚƚŽĚĞƚĞƌŵŝŶĞ
ŚŽǁƚŚĞLJǁŝůůŽďƚĂŝŶƚŚĞŵĂƌŬĞƟŶŐŵĂƚĞƌŝĂůƐ͘^ĂŵƵĞůŚĂƐƚŚĞŽƉƟŽŶŽĨďŽƌƌŽǁŝŶŐƚŚĞΨϰϬŚĞ
ŶĞĞĚƐĨƌŽŵĂĨƌŝĞŶĚŝŶƚŚĞĐŽŵŵƵŶŝƚLJŽƌŐŽŝŶŐƚŽƚŚĞďĂŶŬĨŽƌĂůŽĂŶ͘dŚĞďĂŶŬůŽĂŶǁŽƵůĚďĞĨŽƌ
ĂƉĞƌŝŽĚŽĨϭLJĞĂƌǁŝƚŚĂϭϬйŝŶƚĞƌĞƐƚƌĂƚĞǁŚŝůĞƚŚĞůŽĂŶĨƌŽŵƚŚĞĨƌŝĞŶĚǁŽƵůĚďĞĨŽƌϲŵŽŶƚŚƐ
ǁŝƚŚĂϳйŝŶƚĞƌĞƐƚƌĂƚĞ͘^ĂŵƵĞůŝƐŶĞƌǀŽƵƐĂďŽƵƚďŽƌƌŽǁŝŶŐŵŽŶĞLJĨƌŽŵĂŶLJŽŶĞ͕ƐŽŚĞƵƐĞƐŚŝƐ
ƉƌŽũĞĐƟŽŶƐŚĞĐĂůĐƵůĂƚĞĚĞĂƌůŝĞƌƚŽŵĂŬĞƐƵƌĞƚŚĂƚŚĞǁŽƵůĚďĞĂďůĞƚŽƉĂLJƚŚĞůŽĂŶďĂĐŬŝŶĂ
ƐŚŽƌƚĂŵŽƵŶƚŽĨƟŵĞ͘

tŚŝĐŚůŽĂŶŝƐďĞƩĞƌĨŽƌ^ĂŵƵĞů͍tŚLJ͍/ĨŵŽƌĞŝŶĨŽƌŵĂƟŽŶŝƐŶĞĞĚĞĚ͕ƉůĞĂƐĞĞdžƉůĂŝŶ͘

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tŚĂƚŽƚŚĞƌŝŶĨŽƌŵĂƟŽŶŵŝŐŚƚLJŽƵŶĞĞĚƚŽĚĞƚĞƌŵŝŶĞŝĨĂůŽĂŶŝƐƌŝŐŚƚĨŽƌLJŽƵ͍

162 | Doing | Funding your Business

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Part C: ^ĂŵƵĞů ŚĂƐ ĐŽŶŶĞĐƚĞĚ ǁŝƚŚ Ă ůŽĐĂů ďƵƐŝŶĞƐƐ ŵĂŶ ǁŚŽ ŝƐ ǁŝůůŝŶŐ ƚŽ ŵĂŬĞ ƚŚĞ ůŽĂŶ ƚŽ
^ĂŵƵĞů͛ƐĨƌŝĞŶĚ͘^ĂŵƵĞůǁĂŶƚƐƚŽŵĂŬĞĂĐŽŶƚƌĂĐƚǁŝƚŚƚŚŝƐďƵƐŝŶĞƐƐŵĂŶƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞLJ
ďŽƚŚŬŶŽǁǁŚĞŶƉĂLJŵĞŶƚƐĂƌĞĚƵĞĂŶĚĂƌĞĐůĞĂƌŽŶĂŶLJŽƚŚĞƌŽďůŝŐĂƟŽŶƐŽƌĐŽŵŵŝƚŵĞŶƚƐƚŽ
ĞĂĐŚŽƚŚĞƌ͘

tŚĂƚŝŶĨŽƌŵĂƟŽŶƐŚŽƵůĚ^ĂŵƵĞůŝŶĐůƵĚĞŝŶƚŚĞĐŽŶƚƌĂĐƚ͍

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Lesson 10.5: Funding Your Business

EŽǁŝƚŝƐƟŵĞƚŽĂƉƉůLJƚŚĞůĞƐƐŽŶƐLJŽƵŚĂǀĞůĞĂƌŶĞĚĨƌŽŵƚŚŝƐĐŚĂƉƚĞƌƚŽLJŽƵƌŽǁŶďƵƐŝŶĞƐƐ͘^ŽĨĂƌ
ŝŶƚŚŝƐĐŚĂƉƚĞƌǁĞŚĂǀĞĚŝƐĐƵƐƐĞĚŚŽǁƚŽĚĞƚĞƌŵŝŶĞǁŚĂƚLJŽƵŶĞĞĚƚŽŽƉĞƌĂƚĞLJŽƵƌďƵƐŝŶĞƐƐ͕ƐŽŵĞ
ŽĨ ƚŚĞ ƉŽƐƐŝďůĞ ŽƉƟŽŶƐ ĨŽƌ ƐĞĐƵƌŝŶŐ ƚŚĞ ĐĂƉŝƚĂů LJŽƵ ƌĞƋƵŝƌĞ ĂŶĚ ŚŽǁ ƚŽ ĐŽŵƉĂƌĞ ƚŚĞƐĞ ŽƉƟŽŶƐ͘ :ƵƐƚ
ůŝŬĞĂŶLJƉĂƌƚŽĨŽƉĞƌĂƟŶŐĂďƵƐŝŶĞƐƐ͕ŽďƚĂŝŶŝŶŐƚŚĞĨƵŶĚŝŶŐLJŽƵŶĞĞĚŝƐĐŚĂůůĞŶŐŝŶŐĂŶĚŝƐŶŽƚĂƐƵƌĞ
ƚŚŝŶŐ͘,ŽǁĞǀĞƌ͕ũƵƐƚůŝŬĞĂŶLJƉĂƌƚŽĨLJŽƵƌŽƉĞƌĂƟŽŶƐ͕ĐĂƌĞĨƵůƉůĂŶŶŝŶŐĂŶĚĐŽŶƐŝĚĞƌĂƟŽŶŽĨĂůůŽĨƚŚĞ
ƉŽƐƐŝďŝůŝƟĞƐĂŶĚƌĞůĞǀĂŶƚĨĂĐƚŽƌƐĐĂŶŵĂŬĞŽďƚĂŝŶŝŶŐĨƵŶĚƐĞĂƐŝĞƌĨŽƌLJŽƵ͘

Exercise 10.7: Advice from Experts

/ŶƚĞƌǀŝĞǁƐŽŵĞŽŶĞŝŶLJŽƵƌĐŽŵŵƵŶŝƚLJǁŚŽŚĂƐĞŝƚŚĞƌďŽƌƌŽǁĞĚĨƌŽŵĂďĂŶŬŽƌĂŶŝŶĚŝǀŝĚƵĂů
ǁŚŽŚĂƐŐƌĂŶƚĞĚƐŽŵĞŽŶĞĂůŽĂŶ͘zŽƵĐŽƵůĚĂůƐŽŝŶƚĞƌǀŝĞǁƐŽŵĞŽŶĞǁŚŽǁŽƌŬƐĂƚĂůŽĐĂůďĂŶŬ
ƐŝŶĐĞƚŚĞLJĂƌĞŝŶƚŚĞďƵƐŝŶĞƐƐŽĨůĞŶĚŝŶŐŵŽŶĞLJƚŽŽƚŚĞƌƐ͘ƐŬƚŚĞŵĨŽƌŐƵŝĚĂŶĐĞŽŶǁŚĂƚůĞŶĚĞƌƐ
ůŽŽŬ ĨŽƌ ďĞĨŽƌĞ ĚĞĐŝĚŝŶŐ ƚŽ ŵĂŬĞ Ă ůŽĂŶ͘ tŚĂƚ ŬŝŶĚ ŽĨ ŝŶĨŽƌŵĂƟŽŶ ŝƐ ŶĞĞĚĞĚ͍ tŚĂƚ ĂƌĞ ƚŚĞ
ĨĂĐƚŽƌƐƚŚĂƚŚĞůƉƐŽŵĞŽŶĞƚŽĚĞĐŝĚĞǁŚĞƚŚĞƌŽƌŶŽƚƚŽŵĂŬĞĂůŽĂŶ͍ŽƚŚĞLJŚĂǀĞĂŶLJĂĚǀŝĐĞ
ĨŽƌLJŽƵďĂƐĞĚƚŚĞŝƌĞdžƉĞƌŝĞŶĐĞƐ͍/ƐƚŚĞƌĞĂŶLJƚŚŝŶŐĞůƐĞƚŚĂƚLJŽƵůĞĂƌŶĞĚĨƌŽŵƚŚĞŵĂďŽƵƚƚŚĞ
ƉƌŽĐĞƐƐŽĨĂĐƋƵŝƌŝŶŐĐĂƉŝƚĂůƚŽƐƚĂƌƚĂŶĚƌƵŶLJŽƵƌďƵƐŝŶĞƐƐ͍

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Funding your Business | Doing | 163


Your Business Plan
KŶĐĞLJŽƵŚĂǀĞĐŽŵƉůĞƚĞĚ
ƚŚŝƐĞdžĞƌĐŝƐĞ͕ƚƵƌŶƚŽƚŚĞ
ďĂĐŬŽĨƚŚĞŬĂŶĚǁƌŝƚĞ
ĂƐƵŵŵĂƌLJŽĨƚŚĞĨŽůůǁŝŶŐŝŶ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͗
Funding:
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐǁŚĂƚ
ƌĞƐŽƵƌĐĞƐLJŽƵŶĞĞĚƚŽƐƚĂƌƚ
LJŽƵƌďƵƐŝŶĞƐƐĂŶĚǁŚĞƌĞ
LJŽƵǁŝůůŐĞƚƚŚŽƐĞƌĞƐŽƵƌĐĞƐ
ĨƌŽŵ͘
164 | Doing | Funding your Business
dŚĞ ŬŶŽǁůĞĚŐĞ ĂŶĚ ƚĞĐŚŶŝƋƵĞƐ ĐŽǀĞƌĞĚ ŝŶ ƚŚŝƐ ĐŚĂƉƚĞƌ ĂƌĞ ŝŵƉŽƌƚĂŶƚ ĂŶĚ ŚĞůƉĨƵů ƚŽŽůƐ ƚŽ ƵƐĞ ǁŚĞŶ
ƚƌLJŝŶŐ ƚŽ ŽďƚĂŝŶ ĐĂƉŝƚĂů͘ ,ŽǁĞǀĞƌ͕ ĞǀĞŶ ǁŝƚŚ ƚŚĞƐĞ ƚŽŽůƐ ŵĂŶLJ ĞŶƚƌĞƉƌĞŶĞƵƌƐ ĮŶĚ ŝƚ ĚŝĸĐƵůƚ ƚŽ ƌĂŝƐĞ
ĐĂƉŝƚĂů͘dŚŝŶŬŽĨŝƚƚŚŝƐǁĂLJ͗ŝĨŝƚǁĂƐĞĂƐLJƚŽƌĂŝƐĞĐĂƉŝƚĂůƚŚĞŶŚŽǁǁŽƵůĚŐŽŽĚŝĚĞĂƐĨƌŽŵŵŽƟǀĂƚĞĚĂŶĚ
ƐŬŝůůĞĚĞŶƚƌĞƉƌĞŶĞƵƌƐƐƚĂŶĚŽƵƚƚŽƉŽƚĞŶƟĂůůĞŶĚĞƌƐĨƌŽŵĂůůŽĨƚŚĞƉŽƐƐŝďůĞǁĂLJƐƚŚĞLJĐŽƵůĚŝŶǀĞƐƚƚŚĞŝƌ
ŵŽŶĞLJ͍EŽŽŶĞĐĂŶŽīĞƌLJŽƵĂŶĞĂƐLJĂŶĚĐĞƌƚĂŝŶƌŽƵƚĞĨŽƌŽďƚĂŝŶŝŶŐĐĂƉŝƚĂů͕ďƵƚƚŚĞƌĞĂƌĞƐĞǀĞƌĂůƉŝĞĐĞƐ
ŽĨĂĚǀŝĐĞƚŚĂƚǁŝůůŚĞůƉLJŽƵŝŶƚŚĞƉƵƌƐƵŝƚŽĨƚŚĞƌĞƐŽƵƌĐĞƐLJŽƵŶĞĞĚ͘
DŽƐƚĞŶƚƌĞƉƌĞŶĞƵƌƐƐƚĂƌƚǀĞƌLJƐŵĂůůďLJƵƐŝŶŐƚŚĞŝƌŽǁŶůĂďŽƌĂŶĚǁŚĂƚĞǀĞƌƌĞƐŽƵƌĐĞƐƚŚĞLJĐĂŶƐĂǀĞŽŶ
ƚŚĞŝƌŽǁŶŽƌĞĂƐŝůLJĂĐƋƵŝƌĞĨƌŽŵĐůŽƐĞĨƌŝĞŶĚƐĂŶĚĨĂŵŝůLJ͘dŚŝƐŵĞĂŶƐƚŚĂƚŝƚŝƐǀĞƌLJŝŵƉŽƌƚĂŶƚƚŽĚĞƐŝŐŶ
ĂƉƌŽĐĞƐƐĨŽƌLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂƚŚĂƚƌĞůŝĞƐŽŶĂƐĨĞǁƌĞƐŽƵƌĐĞƐĂƐƉŽƐƐŝďůĞ͘WĞƌŚĂƉƐƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚ
ƉĂƌƚŽĨĂĐƋƵŝƌŝŶŐŶĞĞĚĞĚĐĂƉŝƚĂůŝƐƚŽĚĞĐŝĚĞǁŚĂƚLJŽƵĐĂŶůŝǀĞǁŝƚŚŽƵƚƵŶƟůƚŚĞďƵƐŝŶĞƐƐŐƌŽǁƐĂŶĚ
ŐĞŶĞƌĂƚĞƐĐĂƉŝƚĂůŝƚƐĞůĨ͘
ǀĞŶƐĞĞŬŝŶŐƌĞƐŽƵƌĐĞƐĨƌŽŵĨĂŵŝůLJĂŶĚĨƌŝĞŶĚƐŝƐŶŽƚĂŶĞĂƐLJƚĂƐŬ͘dŚĞLJŵĂLJŚĂǀĞǀĞƌLJůŝŵŝƚĞĚƌĞƐŽƵƌĐĞƐ͕
ƚŽŽ͘dŚŝƐŝƐǁŚLJŵĂŶLJĞŶƚƌĞƉƌĞŶĞƵƌƐĂĐƟǀĞůLJƚƌLJƚŽĞdžƉĂŶĚƚŚĞŝƌĐŝƌĐůĞŽĨĨƌŝĞŶĚƐ͘dŚĞŵŽƌĞĨƌŝĞŶĚƐLJŽƵ
ŚĂǀĞ͕ ƚŚĞŶ ƚŚĞ ŐƌĞĂƚĞƌ ĐŚĂŶĐĞ LJŽƵ ŚĂǀĞ ƚŚĂƚ ƐŽŵĞŽŶĞ ǁŝůů ďĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ LJŽƵƌ ďƵƐŝŶĞƐƐ ŝĚĞĂƐ ĂŶĚ
ĐŽŶƐŝĚĞƌŝŶǀĞƐƟŶŐŝŶƚŚĞŵ͘dŽƚŚĞďĞƐƚŽĨLJŽƵƌĂďŝůŝƚLJ͕ƐĞĞŬŽƵƚĨƌŝĞŶĚƐǁŚŽĂƌĞůŝŬĞͲŵŝŶĚĞĚĂŶĚƚƌLJƚŽ
ĚĞǀĞůŽƉĂŶĞƚǁŽƌŬƚŚĂƚŝŶĐůƵĚĞƐƉĞŽƉůĞǁŚŽĂƌĞŝŶƚĞƌĞƐƚĞĚŝŶďƵƐŝŶĞƐƐĂŶĚǁŚŽĂƌĞƉŽƚĞŶƟĂůŝŶǀĞƐƚŽƌƐ͘
ĂŶŬƐĂƌĞƵƐƵĂůůLJǀĞƌLJƵŶǁŝůůŝŶŐƚŽůĞŶĚĐĂƉŝƚĂůƚŽŶĞǁďƵƐŝŶĞƐƐĞƐ͕ƉĂƌƟĐƵůĂƌůLJǁŚĞŶƚŚĞƉĞƌƐŽŶƐĞĞŬŝŶŐ
ĂůŽĂŶŚĂƐůŝŵŝƚĞĚƌĞƐŽƵƌĐĞƐƚŽďĞŐŝŶǁŝƚŚĂŶĚǀĞƌLJŽŌĞŶŶŽĞdžƉĞƌŝĞŶĐĞƚŚĂƚƉƌŽǀĞƐƚŚĞLJĐĂŶƉĂLJƚŚĞ
ůŽĂŶďĂĐŬ͘,ŽǁĞǀĞƌ͕ƚŚĞƌĞĂƌĞŵĂŶLJŐƌŽƵƉƐĂŶĚŽƌŐĂŶŝnjĂƟŽŶƐƚŽĚĂLJƚŚĂƚĂƌĞǁŝůůŝŶŐƚŽŵĂŬĞƐŵĂůůůŽĂŶƐ
ƚŽƐƚĂƌƚͲƵƉďƵƐŝŶĞƐƐĞƐ͘dŚĞƐĞŵŝĐƌŽͲĐƌĞĚŝƚŽƌŐĂŶŝnjĂƟŽŶƐĐĂŶďĞƐƉŽŶƐŽƌĞĚďLJƚŚĞŐŽǀĞƌŶŵĞŶƚ͕E'KƐ͕
ŽƌŽƚŚĞƌĞŶƟƟĞƐƐƵĐŚĂƐĐŽŵŵƵŶŝƚLJŐƌŽƵƉƐ͕ĐŚƵƌĐŚĞƐ͕ĂŶĚƵŶŝǀĞƌƐŝƟĞƐ͘dŚĞLJĐĂŶĞǀĞŶďĞĨŽƵŶĚŽŶƚŚĞ
ŝŶƚĞƌŶĞƚ͕ǁŝƚŚŽƌŐĂŶŝnjĂƟŽŶƐƐƵĐŚĂƐŬŝǀĂ͘ŽƌŐƐƵƉƉŽƌƟŶŐƐŵĂůůĞŶƚƌĞƉƌĞŶĞƵƌƐĂƌŽƵŶĚƚŚĞǁŽƌůĚ͘zŽƵŵƵƐƚ
ďĞǀĞƌLJƉƌŽĂĐƟǀĞŝŶƐĞĞŬŝŶŐŽƵƚĂŶĚĞdžƉůŽƌŝŶŐĂůůŽĨƚŚĞƚLJƉĞƐŽĨŽƌŐĂŶŝnjĂƟŽŶƐƚŚĂƚŵŝŐŚƚƉŽƐƐŝďůLJůĞŶĚ
LJŽƵƚŚĞƌĞƐŽƵƌĐĞƐLJŽƵŶĞĞĚ͘
EŽ ŵĂƩĞƌ ǁŚĞƌĞ LJŽƵ ƐĞĞŬ ŽƵƚ LJŽƵƌ ŶĞĞĚĞĚ ƌĞƐŽƵƌĐĞƐ͕ LJŽƵ ǁŝůů ŶĞǀĞƌ ŽďƚĂŝŶ ƚŚĞŵ ƵŶůĞƐƐ LJŽƵ ĐĂŶ
ĐŽŶǀŝŶĐĞŽƚŚĞƌƐƚŚĂƚLJŽƵŚĂǀĞĂŐƌĞĂƚŝĚĞĂĂŶĚƚŚĞƉĂƐƐŝŽŶĂŶĚƐŬŝůůƐƚŽĚĞůŝǀĞƌŽŶƚŚĂƚŝĚĞĂ͘dŚŝƐŝƐƚŚĞ
ƚƌƵĞƐĞĐƌĞƚƚŽŚŽǁƐƵĐĐĞƐƐĨƵůĞŶƚƌĞƉƌĞŶĞƵƌƐŽďƚĂŝŶƚŚĞŝƌŶĞĞĚĞĚƌĞƐŽƵƌĐĞƐ͘/ƚŝƐŶ͛ƚŽŶůLJĂďŽƵƚLJŽƵƌŝĚĞĂ
ĂŶĚǁŚŽLJŽƵĂƌĞ͕ďƵƚŝƚŝƐĂůƐŽĂďŽƵƚŚŽǁLJŽƵĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌŝĚĞĂƐĂŶĚƉƌĞƐĞŶƚLJŽƵƌƐĞůĨƚŽŽƚŚĞƌƐ͘
dŚĞƌĞĂƌĞŵĂŶLJǁĂLJƐƚŽĐŽŵŵƵŶŝĐĂƚĞLJŽƵƌŝĚĞĂƐ͕ĂŶĚƚŚĞƌĞƐƚŽĨƚŚŝƐŐƵŝĚĞǁŝůůĨŽĐƵƐŽŶǁĂLJƐƚŽĚŽƚŚŝƐ
ĞīĞĐƟǀĞůLJ͕ǁŚĞƚŚĞƌŝƚŝƐǁŝƚŚĂĨŽƌŵĂůďƵƐŝŶĞƐƐƉůĂŶŽƌĂƋƵŝĐŬƉŝƚĐŚŽĨLJŽƵƌŝĚĞĂƚŽĂĨƌŝĞŶĚŽƌƉŽƚĞŶƟĂů
ŝŶǀĞƐƚŽƌ͘ƵƚƌĞŵĞŵďĞƌ͕ƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚĨĂĐƚŽƌŝŶŽďƚĂŝŶŝŶŐƌĞƐŽƵƌĐĞƐŝƐzKh͘zŽƵŵƵƐƚĚĞǀĞůŽƉƚŚĞ
ŝĚĞĂ͕LJŽƵŵƵƐƚŚĂǀĞƚŚĞƉĂƐƐŝŽŶĂŶĚĐŽŵŵŝƚŵĞŶƚƚŽƉƵƌƐƵĞŝƚ͕ĂŶĚLJŽƵŵƵƐƚŚĂǀĞƚŚĞƐŬŝůůƐŶĞĞĚĞĚ
ƚŽŵŽǀĞƚŚĂƚŝĚĞĂŝŶƚŽĂĐƟŽŶ͘/ĨLJŽƵƌĞĂůŝnjĞƚŚĂƚĂůůŽĨƚŚŝƐŝƐƵŶĚĞƌLJŽƵƌĐŽŶƚƌŽůĂŶĚƚĂŬĞĂĐƟŽŶ͕ƐŽŽŶ
ƌĞƐŽƵƌĐĞƐǁŝůůĐŽŵĞLJŽƵƌǁĂLJďĞĐĂƵƐĞŽƚŚĞƌƐǁŝůůǁĂŶƚƚŽďĞĂƉĂƌƚŽĨƐŽŵĞƚŚŝŶŐƚŚĂƚŝƐƐƵĐĐĞƐƐĨƵůĂŶĚ
ĐƌĞĂƟŶŐǀĂůƵĞ͘
 ZĞŇĞĐƟŽŶ͗ Funding your Business
hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽƚŚŝŶŬĂďŽƵƚƚŚĞĨƵŶĚŝŶŐŽƉƟŽŶƐĂǀĂŝůĂďůĞƚŽLJŽƵ͘zŽƵŵĂLJƚŚŝŶŬŽĨŝĚĞĂƐ
ĨŽƌďĂƌƚĞƌŝŶŐĂŐƌĞĞŵĞŶƚƐ͕ƉůĂĐĞƐǁŚĞƌĞĨƌŝĞŶĚƐŵĂLJŚĂǀĞŐŽƩĞŶůŽĂŶƐŽƌŽƚŚĞƌŝĚĞĂƐĨŽƌŚŽǁƚŽ
ĂĐƋƵŝƌĞƚŚĞƐƚĂƌƚƵƉĐŽƐƚƐŶĞĞĚĞĚĨŽƌLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂ͘

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_______________________________________ ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
_______________________________________ ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
_______________________________________ ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
_______________________________________ ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘

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Funding your Business | Doing | 165

DOING
 Part 3: Doing
dŚŝƐƉĂƌƚǁŝůůŶŽƚŽŶůLJŚĞůƉLJŽƵĂĐƚŽŶLJŽƵƌďƵƐŝŶĞƐƐƉůĂŶĂŶĚƐƚĂƌƚͲƵƉLJŽƵƌďƵƐŝŶĞƐƐ͕
ďƵƚĂůƐŽĞŶĐŽƵƌĂŐĞLJŽƵƚŽƚŚŝŶŬůŽŶŐͲƚĞƌŵĂďŽƵƚŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌŐƌŽǁƚŚĂŶĚŚŽǁ
LJŽƵƌ ďƵƐŝŶĞƐƐ ĐĂŶ ĚĞŵŽŶƐƚƌĂƚĞ ƌĞƐƉŽŶƐŝďůĞ ůĞĂĚĞƌƐŚŝƉ ŝŶ LJŽƵƌ ĐŽŵŵƵŶŝƚLJ͘ ŌĞƌ
ĐŽŵƉůĞƟŶŐƚŚŝƐƉĂƌƚ͕LJŽƵǁŝůůǁĂůŬĂǁĂLJǁŝƚŚĂďĞƩĞƌŝĚĞĂŽĨǁŚĂƚƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐ
LJŽƵŵŝŐŚƚƌƵŶŝŶƚŽŝŶƚŚĞƐƚĂƌƚͲƵƉƉƌŽĐĞƐƐĂŶĚŚŽǁLJŽƵĐĂŶŽǀĞƌĐŽŵĞƚŚĞŵĂƐǁĞůůĂƐ
ĂůŽŶŐͲƚĞƌŵǀŝƐŝŽŶĨŽƌƚŚĞĨƵƚƵƌĞ͘

tŚŝůĞŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽŚĂǀĞĂƐŽůŝĚƉůĂŶďĞĨŽƌĞƚĂŬŝŶŐĂĐƟŽŶ͕ŝƚŝƐĞĂƐLJƚŽŐĞƚĐĂƵŐŚƚ
ƵƉŝŶƉůĂŶŶŝŶŐĂŶĚŶĞǀĞƌĂĐƚ͊/ƚŝƐĂůůĂďŽƵƚďĂůĂŶĐĞ͘dŚŝƐƉĂƌƚǁŝůůŚĞůƉLJŽƵďĂůĂŶĐĞ
ĞǀĞƌLJƚŚŝŶŐLJŽƵůĞĂƌŶĞĚŝŶWĂƌƚϯǁŝƚŚĂƉƌŽĐĞƐƐŽĨĂĐƟŽŶͲƌĞĂĐƚͲƌĞǀŝƐĞ͘

dŚŝƐƉĂƌƚŚĂƐƚŚƌĞĞŵĂŝŶŽďũĞĐƟǀĞƐ͗
• dŽŚĞůƉLJŽƵĐƌĞĂƚĞĂƌĞĂůŝƐƟĐĂŶĚŝŵƉůĞŵĞŶƚĂďůĞŐŽĂůƐƟŵĞůŝŶĞƚŽƐƚĂƌƚͲƵƉLJŽƵƌ
ďƵƐŝŶĞƐƐ
• dŽ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ŝŵƉŽƌƚĂŶĐĞ ŽĨ ůŽŶŐͲƚĞƌŵ ƚŚŝŶŬŝŶŐ ĂďŽƵƚ ƌĞƐƉŽŶƐŝďůĞ
ůĞĂĚĞƌƐŚŝƉĂŶĚďƵƐŝŶĞƐƐŐƌŽǁƚŚŽƉƉŽƌƚƵŶŝƟĞƐ
• dŽ ĞŵƉŽǁĞƌ ĂŶĚ ĞŶĐŽƵƌĂŐĞ LJŽƵ ƚŽ ĨŽůůŽǁ LJŽƵƌ ƉĂƐƐŝŽŶ͕ ǁŽƌŬ ŚĂƌĚ͕ ĂŶĚ
ŽǀĞƌĐŽŵĞŽďƐƚĂĐůĞƐŝŶŽƌĞƌƚŽŵĂŬĞƚŚĞǁŽƌůĚĂďĞƩĞƌƉůĂĐĞ
>> Sharing Your
Idea

ZŽĐŬĞƚWŝƚĐŚĞƐ

11
ƌĂŌŝŶŐLJŽƵƌWŝƚĐŚ
DĂŬŝŶŐLJŽƵƌZŽĐŬĞƚWŝƚĐŚ
ŌĞƌŚŽƵƌƐŽĨƌĞƐĞĂƌĐŚĂŶĚƌĞŇĞĐƟŽŶ͕LJŽƵŚĂǀĞƐƵĐĐĞƐƐĨƵůůLJǁƌŝƩĞŶĂďƵƐŝŶĞƐƐƉůĂŶ͘EŽǁ
ŝƚ͛ƐƟŵĞƚŽƐŚĂƌĞŝƚ͊dŚŝƐĐŚĂƉƚĞƌǁŝůůƚĞĂĐŚLJŽƵŚŽǁƚŽůĞǀĞƌĂŐĞLJŽƵƌƉůĂŶĂƐĂƚŽŽůƚŽĂƩƌĂĐƚ
ƉĂƌƚŶĞƌƐ͕ŝŶǀĞƐƚŽƌƐ͕ĂŶĚŽƚŚĞƌƐƵƉƉŽƌƚĞƌƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

/ŶǀĞƐƚŽƌ͗^ŽŵĞŽŶĞǁŚŽŽīĞƌƐ
ŵŽŶĞLJ͕ĞƋƵŝƉŵĞŶƚ͕ĞdžƉĞƌƟƐĞ͕ĂŶĚͬ
ŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐĨŽƌĂƉƌŽĮƚĂďůĞ
ƌĞƚƵƌŶ͘
Rocket Pitch:ďƌŝĞĨƉƌĞƐĞŶƚĂƟŽŶ
ŽĨĂďƵƐŝŶĞƐƐŝĚĞĂƵƐĞĚƚŽĂƩƌĂĐƚ
ŝŶǀĞƐƚŽƌƐ͕ĂĚǀŝƐŽƌƐ͕ƉĂƌƚŶĞƌƐ͕ĂŶĚ
ŽƚŚĞƌĐŽůůĂďŽƌĂƚŽƌƐ͘

Visual Aid:ƚŽŽůƵƐĞĚƚŽďĞƩĞƌ
ĞdžƉůĂŝŶĂĐŽŶĐĞƉƚ͕ĐŽŵŵƵŶŝĐĂƚĞŬĞLJ
ŝŶĨŽƌŵĂƟŽŶ͕ŽƌĞŶŐĂŐĞĂŶĂƵĚŝĞŶĐĞ͘
 Lesson 11.1: Rocket Pitches
ĞŝŶŐĂďůĞƚŽƐŚĂƌĞLJŽƵƌďƵƐŝŶĞƐƐƉůĂŶǁŝƚŚŽƚŚĞƌƐŝŶĂǁĂLJƚŚĂƚŐĞŶĞƌĂƚĞƐƚŚĞŝƌŝŶƚĞƌĞƐƚŝƐǀĞƌLJŝŵƉŽƌƚĂŶƚ͊
DŽƌĞŽŌĞŶƚŚĂŶŶŽƚ͕LJŽƵǁŽŶ͛ƚŚĂǀĞƚŽĐŽŶǀĞLJĂůůŽĨƚŚĞŝŶĨŽƌŵĂƟŽŶŝŶLJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͕ďƵƚLJŽƵŵĂLJ
ĂůƐŽŽŶůLJŚĂǀĞĂǀĞƌLJƐŚŽƌƚĂŵŽƵŶƚŽĨƟŵĞƚŽĐŽŶǀĞLJǁŚĂƚŝƐŵŽƐƚŝŵƉŽƌƚĂŶƚĂŶĚͬŽƌŝŵƉƌĞƐƐŝǀĞĂďŽƵƚ
ŝƚ͘KŶĞǁĂLJƚŽĚŽƚŚŝƐŝƐƚŚƌŽƵŐŚǁŚĂƚŝƐĐĂůůĞĚĂƌŽĐŬĞƚƉŝƚĐŚʹĂƐŚŽƌƚĚĞůŝǀĞƌLJŽĨĂďƵƐŝŶĞƐƐŝĚĞĂŽƌ
ŽƉƉŽƌƚƵŶŝƚLJ͘ƌŽĐŬĞƚƉŝƚĐŚƵƐƵĂůůLJĐŽŶƐŝƐƚƐŽĨĂƐŝŵƉůĞ͕ƚŚƌĞĞͲŵŝŶƵƚĞŽƌůĞƐƐƉƌĞƐĞŶƚĂƟŽŶƚŚĂƚĞdžƉůĂŝŶƐ
ƚŚĞŵĂƌŬĞƚƉŽƚĞŶƟĂůĂŶĚŚŽǁLJŽƵƌďƵƐŝŶĞƐƐŵŽĚĞůǁŝůůĐĂƉŝƚĂůŝnjĞŽŶŝƚ͘ĞĐĂƵƐĞƚŚŝƐƉƌĞƐĞŶƚĂƟŽŶŝƐƐŽ
ďƌŝĞĨ͕LJŽƵǁĂŶƚƚŽŝŶĐůƵĚĞŽŶůLJĞŶŽƵŐŚĚĞƚĂŝůƚŽŝŶƚĞƌĞƐƚŝŶǀĞƐƚŽƌƐĂŶĚŚŝŐŚůŝŐŚƚǁŚLJLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂ
ŝƐƐƵƉĞƌŝŽƌ͘ĞĂƐĐŽŶĐŝƐĞĂŶĚƐƚƌĂŝŐŚƞŽƌǁĂƌĚĂƐƉŽƐƐŝďůĞ͕ďƵƚďƌŝŶŐƉĂƐƐŝŽŶĂŶĚĞŶĞƌŐLJƚŽƚŚĞŝĚĞĂƐŽ
ƚŚĂƚŽƚŚĞƌƐĂƌĞŝŶƐƉŝƌĞĚďLJLJŽƵ͘

dŚĞƌĞĂƌĞĂƌĞĂƐƚŚĂƚLJŽƵƐŚŽƵůĚĐŽǀĞƌŝŶLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚĂƐǁĞůůĂƐŐƵŝĚĞůŝŶĞƐĨŽƌŝƚƐĚĞůŝǀĞƌLJ͗

The Need
• tŚĂƚŝƐƚŚĞŶĞĞĚ͍
• tŚŽŚĂƐƚŚĞŶĞĞĚ͍tŚŽŝƐƚŚĞƚĂƌŐĞƚŵĂƌŬĞƚ͍,ŽǁďŝŐŝƐƚŚŝƐŵĂƌŬĞƚ͍/ƐŝƚŐƌŽǁŝŶŐ͍
• ,ŽǁŝƐƚŚŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJ͍

WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
• tŚĂƚŝƐƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͍
• ,ŽǁĚŽĞƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂĚĚƌĞƐƐƚŚĞŶĞĞĚŝŶĂǁĂLJƚŚĂƚŝƚŝƐŶŽƚďLJĂŶLJŽŶĞĞůƐĞ͍
DĞŶƟŽŶǁŚŽLJŽƵƌĐŽŵƉĞƟƚŽƌƐĂƌĞĂŶĚŚŽǁLJŽƵƌƐŽůƵƟŽŶŝƐĚŝīĞƌĞŶƚ͘
• ,ŽǁǁŝůůLJŽƵŵĂŬĞĂƉƌŽĮƚ͍tŚĂƚŝƐLJŽƵƌďƵƐŝŶĞƐƐŵŽĚĞů͍

Goals
• ,ŽǁŵƵĐŚĚŽLJŽƵƉƌŽũĞĐƚƚŚĂƚLJŽƵĐĂŶŵĂŬĞ͍,ŽǁĚŝĚLJŽƵĂƌƌŝǀĞĂƚƚŚŝƐƉƌŽũĞĐƟŽŶ͍zŽƵ
ǁŝůůǁĂŶƚƚŽƌĞĨĞƌĞŶĐĞƚŽƚĂůƐĨƌŽŵLJŽƵƌWƌŽ&ŽƌŵĂ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͘
• tŚĂƚĚŽLJŽƵŶĞĞĚƚŽŐĞƚƐƚĂƌƚĞĚĮŶĂŶĐŝĂůůLJ͕ƐŽĐŝĂůůLJ͕ĂŶĚŽƚŚĞƌǁŝƐĞ͍zŽƵǁŝůůǁĂŶƚƚŽ
ƌĞĨĞƌĞŶĐĞƚŽƚĂůƐĨƌŽŵLJŽƵƌ^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚͲhƉŽƐƚƐ͘
• ,ŽǁĂŶĚǁŚĞŶĚŽLJŽƵƉůĂŶƚŽƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐ͍tŚĂƚŝƐLJŽƵƌĂĐƟŽŶƉůĂŶ͍

ƵĚŝĞŶĐĞĂůůƚŽĐƟŽŶ
• tŚĂƚĐĂŶƚŚĞĂƵĚŝĞŶĐĞĚŽƚŽŚĞůƉLJŽƵŐĞƚƐƚĂƌƚĞĚ͍ŽLJŽƵŚĂǀĞŝŵŵĞĚŝĂƚĞŶĞĞĚƐ;Ğ͘Ő͕͘
ĐĂƉŝƚĂů͕ĞƋƵŝƉŵĞŶƚ͕ĞdžƉĞƌƟƐĞ͕ǁŽƌĚͲŽĨͲŵŽƵƚŚĂĚǀĞƌƟƐŝŶŐ͕ĞƚĐ͘Ϳ͍HŽǁĐĂŶƚŚĞĂƵĚŝĞŶĐĞ
ĨƵůĮůůƚŚĞƐĞŶĞĞĚƐĂŶĚŐĞƚŝŶǀŽůǀĞĚƌŝŐŚƚĂǁĂLJ͍

WƌĞƐĞŶƚĂƟŽŶ'ƵŝĚĞůŝŶĞƐ
• dŽƚĂůƉƌĞƐĞŶƚĂƟŽŶƟŵĞůĂƐƚĞĚϯŵŝŶƵƚĞƐŽƌĨĞǁĞƌ
• WƌĞƐĞŶƚĞƌŝŵŵĞĚŝĂƚĞůLJĐĂƉƚƵƌĞĚƚŚĞĂƵĚŝĞŶĐĞ͛ƐĂƩĞŶƟŽŶ
• WƌĞƐĞŶƚĞƌƐƉŽŬĞůŽƵĚĞŶŽƵŐŚĨŽƌĞǀĞƌLJŽŶĞŝŶƚŚĞƌŽŽŵƚŽŚĞĂƌ
• WƌĞƐĞŶƚĞƌƐƉŽŬĞĐůĞĂƌůLJĂŶĚƐůŽǁůLJĞŶŽƵŐŚĨŽƌĂƵĚŝĞŶĐĞƚŽƵŶĚĞƌƐƚĂŶĚ
• WƌĞƐĞŶƚĞƌŚĂĚĂŶĞīĞĐƟǀĞĂŶĚŵĞŵŽƌĂďůĞĐůŽƐŝŶŐ
• WƌĞƐĞŶƚĞƌǁĂƐĐŽŶĮĚĞŶƚ
• sŝƐƵĂůĂŝĚƐǁĞƌĞƵƐĞĚĞīĞĐƟǀĞůLJ;ŝĨĂƉƉůŝĐĂďůĞͿ

tŚĞŶŵĂŬŝŶŐLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚ͕ƵƐŝŶŐǀŝƐƵĂůĂŝĚƐŵĂLJŚĞůƉLJŽƵƌĞĂĐŚLJŽƵƌŽďũĞĐƟǀĞƐďLJĞŵƉŚĂƐŝnjŝŶŐƚŚĞ
ŬĞLJŝŶĨŽƌŵĂƟŽŶLJŽƵƉƌĞƐĞŶƚ͘WŝĐƚƵƌĞƐĂŶĚĚŝĂŐƌĂŵƐ͕ĨŽƌĞdžĂŵƉůĞ͕ĂƌĞƵƐĞĚƚŽƌĂŝƐĞƚŚĞĂƵĚŝĞŶĐĞ͛ƐůĞǀĞů
ŽĨƵŶĚĞƌƐƚĂŶĚŝŶŐďLJĐůĂƌŝĨLJŝŶŐLJŽƵƌŵĞƐƐĂŐĞĂŶĚĐƌĞĂƟŶŐĞdžĐŝƚĞŵĞŶƚ͘KƚŚĞƌĞdžĂŵƉůĞƐŝŶĐůƵĚĞĚƌĂǁŝŶŐƐ͕
ĐŚĂƌƚƐ͕ŐƌĂƉŚƐ͕ĂŶĚƉƌŽƉƐ͘,ĞƌĞĂƌĞŽƚŚĞƌƟƉƐƚŽŬĞĞƉŝŶŵŝŶĚ͗

• /ĚĞŶƟĨLJǁŚĂƚLJŽƵǁĂŶƚƚŽĂĐĐŽŵƉůŝƐŚǁŝƚŚLJŽƵƌǀŝƐƵĂůĂŝĚƐĮƌƐƚ͘
• <ĞĞƉǀŝƐƵĂůĂŝĚƐƐŝŵƉůĞĂŶĚďƌŝĞĨʹĚŽŶŽƚŽǀĞƌůŽĂĚƚŚĞŵǁŝƚŚƚŽŽŵĂŶLJǁŽƌĚƐŽƌŐƌĂƉŚŝĐƐ͘
• DĂŬĞƐƵƌĞƚŚĂƚƚŚĞLJĐĂŶďĞƵŶĚĞƌƐƚŽŽĚďLJĞǀĞƌLJŽŶĞŝŶLJŽƵƌĂƵĚŝĞŶĐĞ͘
• /ĨŝŶĨŽƌŵĂƟŽŶĚŽĞƐŶŽƚŝŶĐƌĞĂƐĞůĞĂƌŶŝŶŐŽƌƵŶĚĞƌƐƚĂŶĚŝŶŐ͕ĚŽŶŽƚŝŶĐůƵĚĞŝƚ͘
• ŽŶŽƚĂůůŽǁǀŝƐƵĂůĂŝĚƐƚŽƚĂŬĞLJŽƵƌĂƩĞŶƟŽŶĂǁĂLJĨƌŽŵƚŚĞĂƵĚŝĞŶĐĞ͘
• ZĞĨĞƌĞŶĐĞĂůůďŽƌƌŽǁĞĚŵĂƚĞƌŝĂů͘

^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ | Doing | 171

 Exercise 11.1: Your Outline
ƌĞĂƚĞĂŶŽƵƚůŝŶĞŽĨƚŚĞƐƚƌƵĐƚƵƌĞŽĨLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚĂŶĚƚŚĞŝŶĨŽƌŵĂƟŽŶLJŽƵǁĂŶƚƚŽĐŽŶǀĞLJ
ŝŶŝƚŝŶƚŚĞƐƉĂĐĞďĞůŽǁ͘

1. Need
Ă͘ĞƐĐƌŝƉƟŽŶŽĨƚŚĞŶĞĞĚƐƚĂƚĞŵĞŶƚLJŽƵƌďƵƐŝŶĞƐƐŝƐĂĚĚƌĞƐƐŝŶŐ͗

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ď͘tŚŽŚĂƐƚŚĞŶĞĞĚ͍tŚŽŝƐƚŚĞƚĂƌŐĞƚŵĂƌŬĞƚ͍,ŽǁďŝŐŝƐƚŚŝƐŵĂƌŬĞƚ͍/ƐŝƚŐƌŽǁŝŶŐ͍

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Đ͘,ŽǁŝƐƚŚŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJ͍

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Ϯ͘WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
Ă͘ůĞĂƌ͕ĐŽŶĐŝƐĞĞdžƉůĂŶĂƟŽŶŽĨLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂŶĚ ďƵƐŝŶĞƐƐŵŽĚĞůŝŶĐůƵĚŝŶŐŚŽǁLJŽƵ
ŝŶƚĞŶĚƚŽŵĂŬĞŵŽŶĞLJ͗

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ď͘,ŽǁĚŽĞƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĂĚĚƌĞƐƐƚŚĞŶĞĞĚŝŶĂǁĂLJƚŚĂƚŝƚŝƐŶŽƚďLJĂŶLJŽŶĞĞůƐĞ͍
DĞŶƟŽŶǁŚŽLJŽƵƌĐŽŵƉĞƟƚŽƌƐĂƌĞĂŶĚŚŽǁLJŽƵƌƐŽůƵƟŽŶŝƐĚŝīĞƌĞŶƚ͘

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Đ͘,ŽǁǁŝůůLJŽƵŵĂŬĞĂƉƌŽĮƚ͍tŚĂƚŝƐLJŽƵƌďƵƐŝŶĞƐƐŵŽĚĞů͍

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3. Goals
Ă͘,ŽǁŵƵĐŚĚŽLJŽƵƉƌŽũĞĐƚƚŚĂƚLJŽƵĐĂŶŵĂŬĞ͍,ŽǁĚŝĚLJŽƵĂƌƌŝǀĞĂƚƚŚŝƐƉƌŽũĞĐƟŽŶ͍zŽƵǁŝůů
ǁĂŶƚƚŽƌĞĨĞƌĞŶĐĞƚŽƚĂůƐĨƌŽŵLJŽƵƌWƌŽ&ŽƌŵĂ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͘

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ď͘ tŚĂƚ ĚŽ LJŽƵ ŶĞĞĚ ƚŽ ŐĞƚ ƐƚĂƌƚĞĚ ĮŶĂŶĐŝĂůůLJ͕ ƐŽĐŝĂůůLJ͕ ĂŶĚ ŽƚŚĞƌǁŝƐĞ͍ zŽƵ ǁŝůů ǁĂŶƚ ƚŽ
ƌĞĨĞƌĞŶĐĞƚŽƚĂůƐĨƌŽŵLJŽƵƌ^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚͲhƉŽƐƚƐ͘

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172 | Doing | ^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ

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Đ͘,ŽǁĂŶĚǁŚĞŶĚŽLJŽƵƉůĂŶƚŽƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐ͍tŚĂƚŝƐLJŽƵƌĂĐƟŽŶƉůĂŶ͍

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ϰ͘ƵĚŝĞŶĐĞĂůůƚŽĐƟŽŶ
Ă͘ tŚĂƚ ĐĂŶ ƚŚĞ ĂƵĚŝĞŶĐĞ ĚŽ ƚŽ ŚĞůƉ LJŽƵ ŐĞƚ ƐƚĂƌƚĞĚ͍ Ž LJŽƵ ŚĂǀĞ ŝŵŵĞĚŝĂƚĞ ŶĞĞĚƐ ;Ğ͘Ő͕͘
ĐĂƉŝƚĂů͕ĞƋƵŝƉŵĞŶƚ͕ĞdžƉĞƌƟƐĞ͕ǁŽƌĚͲŽĨͲŵŽƵƚŚĂĚǀĞƌƟƐŝŶŐ͕ĞƚĐ͘Ϳ͍HŽǁĐĂŶƚŚĞĂƵĚŝĞŶĐĞĨƵůĮůů
ƚŚĞƐĞŶĞĞĚƐĂŶĚŐĞƚŝŶǀŽůǀĞĚƌŝŐŚƚĂǁĂLJ͍

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Lesson 11.2: ƌĂŌŝŶŐLJŽƵƌWŝƚĐŚ

ĞĨŽƌĞLJŽƵĐƌĞĂƚĞĂŶĚƉƌĞƐĞŶƚLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚ͕LJŽƵƐŚŽƵůĚďĞƐƵƌĞƚŚĂƚLJŽƵŚĂǀĞĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐ
ŽĨ ǁŚŽ LJŽƵ ĂƌĞ ƚĂůŬŝŶŐ ƚŽ͕ ǁŚĂƚ ƚŚĞŝƌ ŶĞĞĚƐ ĂƌĞ͕ ĂŶĚ ǁŚĂƚ LJŽƵ ǁĂŶƚ ƚŽ ĂĐŚŝĞǀĞ ĂƐ Ă ƌĞƐƵůƚ ŽĨ LJŽƵƌ
ĐŽŶǀĞƌƐĂƟŽŶ ǁŝƚŚ ƚŚĞŵ͘ /Ĩ LJŽƵ ĚŽŶ͛ƚ ĐŽŶƐŝĚĞƌ ƚŚĞƐĞ ĨĂĐƚŽƌƐ͕ LJŽƵƌ ƌŽĐŬĞƚ ƉŝƚĐŚ ŝƐ ůŝŬĞůLJ ƚŽ LJŝĞůĚ ĨĞǁ
ƌĞƐƵůƚƐ͘zŽƵƌƉŝƚĐŚƐŚŽƵůĚĐŽŶƐŝĚĞƌǁŚŽLJŽƵĂƌĞƚĂůŬŝŶŐƚŽĂŶĚƚŚĞƉƵƌƉŽƐĞŽĨƚŚĞƉŝƚĐŚ͘&ŽƌĞdžĂŵƉůĞ͕
ǁŝůůŝƚďĞĨĂŵŝůLJŵĞŵďĞƌƐ͕ƉƌŽĨĞƐƐŝŽŶĂůŝŶǀĞƐƚŽƌƐ͕ŽƌĂďĂŶŬ͍ĂĐŚƉĂƌƚLJƌĞƋƵŝƌĞƐĂĚŝīĞƌĞŶƚĂƉƉƌŽĂĐŚ
ĂŶĚƉƌĞƐĞŶƚĂƟŽŶƐƚLJůĞ͘&ŽƌƉƌŽĨĞƐƐŝŽŶĂůŝŶǀĞƐƚŽƌƐ͕LJŽƵŵĂLJŶĞĞĚĂĚĞƚĂŝůĞĚƉƌĞƐĞŶƚĂƟŽŶĐŽŵƉůĞƚĞǁŝƚŚ
ƉƌŽͲĨŽƌŵĂ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂŶĚ ĚĞƚĂŝůƐ ŽŶ ůŽŐŝƐƟĐƐ͘ ,ŽǁĞǀĞƌ͕ ĨĂŵŝůLJ ŵĞŵďĞƌƐ ŵĂLJ ŽŶůLJ ƌĞƋƵŝƌĞ
ŝŶĨŽƌŵĂƟŽŶŽŶƚŚĞďƵƐŝŶĞƐƐŵŽĚĞůĂŶĚƉĂLJďĂĐŬĚĂƚĞ͘zŽƵŵƵƐƚŬŶŽǁLJŽƵƌĂƵĚŝĞŶĐĞŝŶŽƌĚĞƌƚŽĐƌĞĂƚĞ
ƚŚĞŵŽƐƚŝŵƉĂĐƚ͘ĚŝƚLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚƚŽƚŚĞƐƉĞĐŝĮĐƉĞƌƐŽŶŽƌŐƌŽƵƉLJŽƵĂƌĞƚĂƌŐĞƟŶŐ͘/ĨLJŽƵĂƌĞŶŽƚ
ƐƵƌĞǁŚŽƚŚŝƐǁŝůůďĞ͕ĨŽĐƵƐĮƌƐƚŽŶǁŚŽLJŽƵƚŚŝŶŬǁŝůůďĞĂďůĞƚŽƐŽůǀĞLJŽƵƌŵŽƐƚŝŵƉŽƌƚĂŶƚŶĞĞĚƐ͘
KƚŚĞƌƌĞĂƐŽŶƐĨŽƌĨƵŶĚŝŶŐ
&Žƌ ĞdžĂŵƉůĞ͕ ^ĂŵƵĞů ĂŶĚ 'ƌĂĐĞ ŚĂǀĞ ŽīĞƌĞĚ ƚŽ ƉŝƚĐŚ ƚŚĞ dƌĂƐŚ ZĞŵŽǀĂů ďƵƐŝŶĞƐƐ ŽŶ ďĞŚĂůĨ ŽĨ ƚŚĞŝƌ ĐŽƵůĚďĞƚŽƐĞĐƵƌĞƉĂƌƟĂů
ĨƌŝĞŶĚ͘ dŚĞLJ ŚĂǀĞ ŝĚĞŶƟĮĞĚ ǁŚŽ ƚŚĞLJ ǁŝůů ƚĂƌŐĞƚ͕ ǁŚĂƚ ƚŚĞŝƌ ĚĞƐŝƌĞĚ ƉĂLJďĂĐŬ ŝƐ͕ Ͳ ďŽƚŚ ƚĂŶŐŝďůĞ ĂŶĚ ĨƵŶĚŝŶŐ͕ĂĚǀŝĐĞ͕ƉĂƌƚŶĞƌƐ͕
ŝŶƚĂŶŐŝďůĞͲĂŶĚǁŚĂƚďƵƐŝŶĞƐƐŝŶĨŽƌŵĂƟŽŶƚŚĞŝƌƉŽƚĞŶƟĂůŝŶǀĞƐƚŽƌǁŝůůƌĞƋƵŝƌĞŝŶƚŚĞƉƌĞƐĞŶƚĂƟŽŶ͘ ĞŵƉůŽLJĞĞƐ͕ŽƌŽƚŚĞƌ
collaborators
WŽƚĞŶƟĂůƐƵƉƉŽƌƚĞƌηϭ͗
Family Member

Their needs:
$20 for startup costs

ZĞĂƐŽŶĨŽƌƉƌĞƐĞŶƚĂƟŽŶ͗
To seek funding for all start-up costs

Supporter’s needs:
1. Amount of money requested
2. Plan for how the money will be spent
3. Assurance of payback within two years
4. To create sources of employment for family members

/ŶĨŽƌŵĂƟŽŶƚŽŝŶĐůƵĚĞŝŶƉƌĞƐĞŶƚĂƟŽŶ͗
1. Outline of how the money will be spent
3URMHFWHGŤQDQFLDOVWRGHPRQVWUDWHSURMHFWHGEUHDNHYHQSRLQWDQGSURŤW
3. Payback schedule
4. Summary of employees needed and which positions will be reserved for family members (if
applicable)

EŽǁƚŚĂƚƚŚĞLJŚĂǀĞŝĚĞŶƟĮĞĚƚŚŝƐŝŶĨŽƌŵĂƟŽŶ͕^ĂŵƵĞůĂŶĚ'ƌĂĐĞŚĂǀĞďĞĞŶĂďůĞƚŽĚƌĂŌĂƌŽĐŬĞƚ
ƉŝƚĐŚĨŽƌƚŚŝƐĂƵĚŝĞŶĐĞ͘zŽƵĐĂŶĮŶĚƚŚĞŝƌƌŽĐŬĞƚƉŝƚĐŚŝŶƚŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚďƵƐŝŶĞƐƐ
ƉůĂŶŝŶƉƉĞŶĚŝdžs/͘

^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ | Doing | 173

 Exercise 11.2: ĚũƵƐƟŶŐzŽƵƌWŝƚĐŚ
/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ŝĚĞŶƟĨLJǁŚĂƚƉĞƌƐŽŶŽƌŐƌŽƵƉLJŽƵǁŝůůƚĂƌŐĞƚǁŝƚŚLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚ͕ǁŚĂƚ
LJŽƵĞdžƉĞĐƚƚŽĂĐŚŝĞǀĞǁŝƚŚƚŚĞƉŝƚĐŚ͕ĂŶĚǁŚĂƚƐƉĞĐŝĮĐŝŶĨŽƌŵĂƟŽŶLJŽƵƚŚŝŶŬĞĂĐŚĂƵĚŝĞŶĐĞǁŝůů
ĞdžƉĞĐƚLJŽƵƚŽŝŶĐůƵĚĞŝŶLJŽƵƌƉƌĞƐĞŶƚĂƟŽŶ͘ĞĂƐĚĞƚĂŝůĞĚĂƐƉŽƐƐŝďůĞ͘

WŽƚĞŶƟĂů^ƵƉƉŽƌƚĞƌηϭ͗ _____________________________
zŽƵƌŶĞĞĚƐ͗

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ZĞĂƐŽŶĨŽƌƉƌĞƐĞŶƚĂƟŽŶ͗

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^ƵƉƉŽƌƚĞƌ͛ƐŶĞĞĚƐ͗

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/ŶĨŽƌŵĂƟŽŶƚŽŝŶĐůƵĚĞŝŶƉƌĞƐĞŶƚĂƟŽŶ͗

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WŽƚĞŶƟĂů^ƵƉƉŽƌƚĞƌηϮ͗ _____________________________
zŽƵƌŶĞĞĚƐ͗

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ZĞĂƐŽŶĨŽƌƉƌĞƐĞŶƚĂƟŽŶ͗

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174 | Doing | ^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ

 ^ƵƉƉŽƌƚĞƌ͛ƐŶĞĞĚƐ͗

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/ŶĨŽƌŵĂƟŽŶƚŽŝŶĐůƵĚĞŝŶƉƌĞƐĞŶƚĂƟŽŶ͗

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zŽƵƌŶĞĞĚƐ͗

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ZĞĂƐŽŶĨŽƌƉƌĞƐĞŶƚĂƟŽŶ͗

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^ƵƉƉŽƌƚĞƌ͛ƐŶĞĞĚƐ͗

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/ŶĨŽƌŵĂƟŽŶƚŽŝŶĐůƵĚĞŝŶƉƌĞƐĞŶƚĂƟŽŶ͗

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^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ | Doing | 175

 Exercise 11.3: ƌĂŌŝŶŐzŽƵƌWŝƚĐŚ
hƐŝŶŐLJŽƵƌZŽĐŬĞƚWŝƚĐŚŽƵƚůŝŶĞĂŶĚŽŶĞŽĨƚŚĞƉŽƚĞŶƟĂůĂƵĚŝĞŶĐĞƐƚŚĂƚLJŽƵŝĚĞŶƟĮĞĚŝŶƚŚĞůĂƐƚ
ĞdžĞƌĐŝƐĞ͕ĚƌĂŌŽŶĞĐŽŵƉůĞƚĞZŽĐŬĞƚWŝƚĐŚďĞůŽǁ͘

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176 | Doing | ^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ

ĞŝŶŐĂďůĞƚŽŵĂŬĞĂŶĞīĞĐƟǀĞƌŽĐŬĞƚƉŝƚĐŚŝƐƉĞƌŚĂƉƐƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚƐƚĞƉŝŶŐĞƫŶŐLJŽƵƌďƵƐŝŶĞƐƐ
ƐƚĂƌƚĞĚ͘,ŽǁĞǀĞƌ͕ŝƚ͛ƐĂůŵŽƐƚĐĞƌƚĂŝŶƚŚĂƚLJŽƵƌƉŝƚĐŚǁŝůůŶŽƚďĞƉĞƌĨĞĐƚƚŚĞĮƌƐƚƟŵĞLJŽƵŵĂŬĞŝƚ͘zŽƵ
ŶĞĞĚƚŽƉƌĂĐƟĐĞŝƚ͘

Exercise 11.4: Rocket Pitch Feedback

hƐŝŶŐƚŚĞŽƵƚůŝŶĞLJŽƵŚĂǀĞĚĞǀĞůŽƉĞĚĂďŽǀĞĂŶĚĂƌŵĞĚǁŝƚŚƚŚĞŬŶŽǁůĞĚŐĞŽĨǁŚŽLJŽƵƌĂƵĚŝĞŶĐĞ
ŝƐ͕ƉƌĂĐƟĐĞLJŽƵƌƉŝƚĐŚŽŶƚŚƌĞĞĚŝīĞƌĞŶƚŝŶĚŝǀŝĚƵĂůƐ͘ƐŬĞĂĐŚŽĨƚŚĞƐĞŝŶĚŝǀŝĚƵĂůƐĨŽƌĨĞĞĚďĂĐŬ
ŽŶLJŽƵƌƉŝƚĐŚ͘ĂĐŚƟŵĞLJŽƵŵĂŬĞLJŽƵƌƉŝƚĐŚ͕ƚƌLJƚŽĨŽĐƵƐŽŶĚŝīĞƌĞŶƚƐƵŐŐĞƐƟŽŶƐŵĞŶƟŽŶĞĚŽŶ
ƚŚĞƉƌĞǀŝŽƵƐƉĂŐĞ͘/ŶƚŚĞƐƉĂĐĞďĞůŽǁ͕ƐƵŵŵĂƌŝnjĞǁŚĂƚLJŽƵĨŽƵŶĚƚŽďĞŵŽƐƚĚŝĸĐƵůƚŝŶŵĂŬŝŶŐ
LJŽƵƌƉŝƚĐŚ͘tĂƐƚŚŝƐƚŚĞƐĂŵĞĞĂĐŚƟŵĞ͍tŚĂƚŬŝŶĚŽĨĨĞĞĚďĂĐŬĚŝĚLJŽƵƌĞĐĞŝǀĞĨƌŽŵƚŚŽƐĞƚŽ
ǁŚŽŵLJŽƵƉƌĞƐĞŶƚĞĚ͍ZĞĨĞƌďĂĐŬƚŽƚŚĞ͞ZŽĐŬĞƚWŝƚĐŚŚĞĐŬůŝƐƚ͟ƉƌĞƐĞŶƚĞĚĞĂƌůŝĞƌŝŶƚŚŝƐĐŚĂƉƚĞƌ͘
ŽĐƵŵĞŶƚƚŚĞĨĞĞĚďĂĐŬLJŽƵƌĞĐĞŝǀĞďĞůŽǁ͘

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^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ | Doing | 177

 Exercise 11.5: ĚŝƟŶŐzŽƵƌWŝƚĐŚ
ĚŝƚLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚďĂƐĞĚŽŶƚŚĞĨĞĞĚďĂĐŬLJŽƵƌĞĐĞŝǀĞĚ͘

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178 | Doing | ^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ

 Lesson 11.3: Making Your Rocket Pitch
dŚĞƌĞŝƐŽŶůLJŽŶĞǁĂLJƚŽĂĐŚŝĞǀĞƚŚĞŐŽĂůƐŽĨLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚĂŶĚŝƚŝƐƐŝŵƉůĞ͗ƉƌĂĐƟĐĞ͕ƉƌĂĐƟĐĞ͕ĂŶĚ
ŵŽƌĞƉƌĂĐƟĐĞ͘ZĞŚĞĂƌƐĞLJŽƵƌƉƌĞƐĞŶƚĂƟŽŶǁŝƚŚĨƌŝĞŶĚƐĂŶĚĨĂŵŝůLJĞǀĞƌLJĐŚĂŶĐĞLJŽƵŐĞƚ͘^ŝŶĐĞƚŚŝƐƉŝƚĐŚ
ŝƐĂďŽƵƚƐŽŵĞƚŚŝŶŐƚŚĂƚLJŽƵĂƌĞƉĂƐƐŝŽŶĂƚĞĂďŽƵƚ͕LJŽƵƐŚŽƵůĚŬŶŽǁŝƚǁĞůůĂŶĚďĞĂďůĞƚŽĚĞůŝǀĞƌŝƚĂƚĂ
ŵŽŵĞŶƚ͛ƐŶŽƟĐĞ͘

,ĞƌĞĂƌĞƐŽŵĞƚŚŝŶŐƐƚŽŬĞĞƉŝŶŵŝŶĚĂƐLJŽƵŵĂŬĞLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚ͘

ƫƚƵĚĞ
• tŚĞŶLJŽƵŵĂŬĞLJŽƵƌƉƌĞƐĞŶƚĂƟŽŶ͕ƌĞŵĞŵďĞƌƚŚĂƚĮƌƐƚŝŵƉƌĞƐƐŝŽŶƐŵĂƩĞƌ͘ƌĞƐƐ
ĂƉƉƌŽƉƌŝĂƚĞůLJĂŶĚĚĞůŝǀĞƌLJŽƵƌƉŝƚĐŚĨƌŽŵƚŚĞďĞŐŝŶŶŝŶŐǁŝƚŚĐŽŶĮĚĞŶĐĞĂŶĚĞŶĞƌŐLJ͘
• ůǁĂLJƐƐŚŽǁLJŽƵƌĞdžĐŝƚĞŵĞŶƚĂŶĚƉĂƐƐŝŽŶĨŽƌLJŽƵƌƉƌŽĚƵĐƚƚŽLJŽƵƌĂƵĚŝĞŶĐĞ

Storytelling
• dƌLJƚŽĞŶŐĂŐĞLJŽƵƌĂƵĚŝĞŶĐĞƌŝŐŚƚĨƌŽŵƚŚĞďĞŐŝŶŶŝŶŐǁŝƚŚƐŽŵĞƚŚŝŶŐƐŝŵƉůĞĂŶĚĂƩĞŶƟŽŶ
ŐƌĂďďŝŶŐƚŚĂƚŬĞĞƉƐLJŽƵƌĂƵĚŝĞŶĐĞŝŶƚĞƌĞƐƚĞĚ͘
• tŚŝůĞLJŽƵŽŶůLJŚĂǀĞĂƐŵĂůůĂŵŽƵŶƚŽĨƟŵĞƚŽŵĂŬĞLJŽƵƌƉŝƚĐŚ͕ĚŽŶŽƚƐƉĞĂŬĨĂƐƚ͘
DĂŬĞƐƵƌĞLJŽƵŚĂǀĞƉƌĂĐƟĐĞĚǁŚĂƚLJŽƵĂƌĞŐŽŝŶŐƚŽƐĂLJĂŶĚƐĂLJŝƚǁŝƚŚĂƵƚŚŽƌŝƚLJĂŶĚ
ĐŽŶĮĚĞŶĐĞ͘
• ŽŶ͛ƚƵƐĞůĂŶŐƵĂŐĞŽƌǀŝƐƵĂůƐƚŚĂƚǁŝůůďĞĐŽŶĨƵƐŝŶŐƚŽLJŽƵƌĂƵĚŝĞŶĐĞ͘/ŶŵŽƐƚĐĂƐĞƐ͕
ƐŝŵƉůĞŝƐďĞƩĞƌƐŽƚŚĂƚLJŽƵĐĂŶďĞƐƵƌĞĞǀĞƌLJŽŶĞŝŶLJŽƵƌĂƵĚŝĞŶĐĞƵŶĚĞƌƐƚĂŶĚƐǁŚĂƚLJŽƵ
ĂƌĞƚƌLJŝŶŐƚŽĐŽŶǀĞLJ͘
• ŽŶ͛ƚƌĞůLJƚŽŽŵƵĐŚŽŶLJŽƵƌǀŝƐƵĂůƐ͘dŚŝƐƐŚŽƵůĚďĞLJŽƵƌƐƚŽƌLJ͕ĂŶĚLJŽƵƌǁŽƌĚƐĂŶĚĂĐƟŽŶƐ
ĂƌĞŵŽƌĞŝŵƉŽƌƚĂŶƚƚŚĂŶĂŶLJǀŝƐƵĂůƌĞƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞŝĚĞĂ͘

^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ | Doing | 179


ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
180 | Doing | ^ŚĂƌŝŶŐzŽƵƌ/ĚĞĂ
ZĞŇĞĐƟŽŶ͗ Sharing Your Idea
tŚŽĚŽLJŽƵƉůĂŶŽŶƐŚĂƌŝŶŐLJŽƵƌƌŽĐŬĞƚƉŝƚĐŚǁŝƚŚ͍tŚLJ͕ŚŽǁ͕ĂŶĚǁŚĞŶ͍
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>> Taking
Action and
Overcoming
Obstacles

ĞǀĞůŽƉĂ'ŽĂůƐdŝŵĞ>ŝŶĞ

12
WůĂŶŶŝŶŐĨŽƌKďƐƚĂĐůĞƐ
KǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ
ŽŵŵŝƚƚŽzŽƵƌ'ŽĂůƐ
^Ž ŶŽǁ ƚŚĂƚ LJŽƵ͛ǀĞ ƚĂŬĞŶ ƚŚĞ ƟŵĞ ƚŽ ƚŚŝŶŬ ĂďŽƵƚ LJŽƵƌ ďƵƐŝŶĞƐƐ͕ ǁƌŝƚĞ Ă ďƵƐŝŶĞƐƐ ƉůĂŶ͕
ĂŶĚ ǁŽƌŬ ŽŶ LJŽƵƌ ďƵƐŝŶĞƐƐ ƉůĂŶ ƉƌĞƐĞŶƚĂƟŽŶ͘ /ƚ͛Ɛ ƟŵĞ ƚŽ ƚĂŬĞ ƐŽŵĞ ĂĐƟŽŶ ĂŶĚ ŐĞƚ LJŽƵƌ
ďƵƐŝŶĞƐƐ ƵƉ ĂŶĚ ƌƵŶŶŝŶŐ͊ tŝƚŚŽƵƚ ĂŶLJ ĂĐƟŽŶ ;ĞǀĞŶ ƐŵĂůů ƐƚĞƉƐ ŽĨ ĂĐƟŽŶͿ͕ LJŽƵ ǁŝůů ŶĞǀĞƌ
ŽďƚĂŝŶ ƌĞƐƵůƚƐ͕ŶĞǀĞƌůĞĂƌŶĂŶLJƚŚŝŶŐŶĞǁ͕ĂŶĚ ŶĞǀĞƌŐƌŽǁLJŽƵƌďƵƐŝŶĞƐƐůŝŬĞLJŽƵ ǁĂŶƚƚŽ͘
Ƶƚ͕ďĞĨŽƌĞLJŽƵũƵŵƉŝŶƚŽŝƚ͕LJŽƵ͛ůůǁĂŶƚƚŽŵĂŬĞĂŶĂĐƟŽŶƉůĂŶĂŶĚĂŐŽĂůƐƟŵĞůŝŶĞƐŽƚŚĂƚ
LJŽƵƐƚĂLJŽƌŐĂŶŝnjĞĚĂŶĚŽŶͲƚĂƐŬ͘ŶĚ͕ĞǀĞŶǁŝƚŚĂŶĂĐƟŽŶƉůĂŶ͕ƚŚŝŶŐƐǁŝůůŽŌĞŶŐŽĂůŝƩůĞ
ĚŝīĞƌĞŶƚůLJƚŚĂŶLJŽƵŝŵĂŐŝŶĞĚ͘zŽƵ͛ůůŶĞĞĚƚŽǁŽƌŬƚŚƌŽƵŐŚƚŚĞƐĞŽďƐƚĂĐůĞƐ͕ƐƚĂLJĨŽĐƵƐĞĚ͕ĂŶĚ
ůĞĂƌŶĨƌŽŵLJŽƵƌŵŝƐƚĂŬĞƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Goals:/ĚĞŶƟĨLJŝŶŐĂůůŽĨƚŚĞ
ƚĂƐŬƐLJŽƵŶĞĞĚƚŽĚŽŝŶŽƌĚĞƌƚŽ
ĂĐĐŽŵƉůŝƐŚƐŽŵĞƚŚŝŶŐ͘
Goals Timeline:ƚĞŶƚĂƟǀĞ
ƐĐŚĞĚƵůĞŽĨǁŚĞŶƚŽĐŽŵƉůĞƚĞ
ĐĞƌƚĂŝŶƚĂƐŬƐďLJŝŶŽƌĚĞƌƚŽ
ĂĐĐŽŵƉůŝƐŚƐŽŵĞƚŚŝŶŐ͘
Flexibility:ĞŝŶŐĂďůĞƚŽĂĚũƵƐƚ
ǁŚĂƚLJŽƵĂƌĞĚŽŝŶŐ͕ǁŚĞŶLJŽƵĚŽ
ŝƚ͕ĂŶĚŚŽǁLJŽƵĚŽŝƚĂƐƵŶĞdžƉĞĐƚĞĚ
ǀĂƌŝĂďůĞƐĂƌŝƐĞ͘
Obstacle:ŶƵŶĞdžƉĞĐƚĞĚǀĂƌŝĂďůĞ
ƚŚĂƚƉƌĞǀĞŶƚƐLJŽƵĨƌŽŵƌĞĂĐŚŝŶŐĂ
ŐŽĂů͘
 Lesson 12.1: Develop a Goals Timeline
dŽĐƌĞĂƚĞLJŽƵƌĂĐƟŽŶƉůĂŶ͕LJŽƵǁŝůůǁĂŶƚƚŽƐŝƚĚŽǁŶĂŶĚŵĂŬĞĂůŝƐƚŽĨĞdžĂĐƚůLJǁŚĂƚŶĞĞĚƐƚŽďĞĚŽŶĞ
ŝŶŽƌĚĞƌƚŽŐĞƚLJŽƵƌďƵƐŝŶĞƐƐƵƉĂŶĚƌƵŶŶŝŶŐ͘zŽƵƐŚŽƵůĚŚĂǀĞĂůƌĞĂĚLJƚŚŽƵŐŚƚƚŚƌŽƵŐŚƚŚĞƐĞŶĞĞĚƐŝŶ
ƚŚĞďƵƐŝŶĞƐƐƉůĂŶŶŝŶŐƉŚĂƐĞ͕ďƵƚŶŽǁLJŽƵǁŝůůǁĂŶƚƚŽƚĂŬĞĂŶŽƚŚĞƌůŽŽŬĂƚǁŚĂƚĂĐƟŽŶŝƚĞŵƐLJŽƵŶĞĞĚ
ƚŽĐŽŵƉůĞƚĞďĞĨŽƌĞLJŽƵĐĂŶŽƉĞŶƵƉLJŽƵƌďƵƐŝŶĞƐƐƚŽĐƵƐƚŽŵĞƌƐ͘DĂŬĞƐƵƌĞLJŽƵƉĂLJĂƩĞŶƟŽŶƚŽĚĞƚĂŝůƐ
ĂŶĚƚƌLJƚŽƚŚŝŶŬŽĨĂůůƚŚĞƐŵĂůůĂĐƟŽŶŝƚĞŵƐƚŚĂƚLJŽƵǁŝůůŶĞĞĚƚŽƚĂŬĞĐĂƌĞŽĨŝŶŽƌĚĞƌĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ
ƚŽƐƚĂƌƚƐŵŽŽƚŚůLJ͘

/ŶŽƌĚĞƌƚŽƐƚĂLJŽŶƚƌĂĐŬĂŶĚŬĞĞƉLJŽƵƌƐĞůĨŵŽƟǀĂƚĞĚƚŽŐĞƚLJŽƵƌďƵƐŝŶĞƐƐƐƚĂƌƚĞĚ͕LJŽƵǁŝůůĂůƐŽŶĞĞĚ
ƚŽĐƌĞĂƚĞĂŐŽĂůƐƟŵĞůŝŶĞƚŚĂƚŚĞůƉƐLJŽƵƉƌŝŽƌŝƟnjĞLJŽƵƌĂĐƟŽŶŝƚĞŵƐĂŶĚƐĞƚƐĂƟŵĞůŝŶĞĨŽƌǁŚĞŶLJŽƵ
ǁĂŶƚLJŽƵƌŐŽĂůƐƚŽďĞĐŽŵƉůĞƚĞĚ͘zŽƵƐŚŽƵůĚƵƐĞƚŚĞŐŽĂůƐƚŚĂƚLJŽƵĚĞǀĞůŽƉĞĚƚŽĐŽŵĞƵƉǁŝƚŚĂŐŽĂůƐ
ƟŵĞůŝŶĞ͘

&ŽƌĞdžĂŵƉůĞ͕ƚŚĞŽǁŶĞƌƐŽĨDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚŵĂLJŚĂǀĞĂƐĞƚŽĨŐŽĂůƐĂŶĚĂƟŵĞůŝŶĞ
ƚŚĂƚǁŽƵůĚůŽŽŬƐŽŵĞƚŚŝŶŐůŝŬĞǁŚĂƚŝƐďĞůŽǁ͘

Metropolis Trash Management

Goals and Timeline
• Raise funds by pitching business plan to potential investors, partners, or other
supporters
• Need to identify compost space
• Finalize supplier and costs
• Finalize the price of services
• Make a sign to display at markets and local businesses for promotion

Raise funds
Estimated completion time: 3 weeks;
need to complete before moving to next steps

Identify Compost Space

Estimated completion time: 1 week

Finalize Supplier Contract

Estimated completion time: 2 weeks

Finalize pricing
Estimated completion time: 1 week

Create sign for promotion

Estimated completion time: 1 day

Secure funds
Estimated completion time: 1 week

dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ | Doing | 183

 Exercise 12.1: Develop Your Goals Timeline
hƐŝŶŐƚŚĞďƵƐŝŶĞƐƐŝĚĞĂƚŚĂƚLJŽƵŚĂǀĞĐŚŽƐĞŶƚŽƉƵƌƐƵĞ͕ĚĞǀĞůŽƉĂŶĂĐƟŽŶƉůĂŶĂŶĚŐŽĂůƐƟŵĞ
ůŝŶĞƚŚĂƚLJŽƵĐŽƵůĚĨŽƌĞƐĞĞĨŽƌĂďƵƐŝŶĞƐƐŽĨƚŚŝƐƚLJƉĞ͘hƐĞƚŚĞĨŽůůŽǁŝŶŐƚĞŵƉůĂƚĞƐƚŽĚĞǀĞůŽƉ
LJŽƵƌĂĐƟŽŶƉůĂŶĂŶĚŐŽĂůƐƟŵĞůŝŶĞ͘

DĂŬĞĂůŝƐƚŽĨǁŚĂƚLJŽƵŶĞĞĚƚŽĚŽƚŽƐƚĂƌƚĂŶĚƌƵŶƚŚŝƐďƵƐŝŶĞƐƐ͍

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184 | Doing | dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ

dŚĞĞŶƚƌĞƉƌĞŶĞƵƌŝĂůƉƌŽĐĞƐƐŝƐĂďŽƵƚĮŶĚŝŶŐĂďĂůĂŶĐĞďĞƚǁĞĞŶƚŚŝŶŬŝŶŐ͕ƉůĂŶŶŝŶŐ͕ĂŶĚĚŽŝŶŐ͘/ƚ͛ƐŶŽƚ
ǁŽƌƚŚŝƚƚŽƚƌLJƚŽƉƌĞĚŝĐƚĂŶĚƉůĂŶĨŽƌĞǀĞƌLJƉŽƐƐŝďůĞŽďƐƚĂĐůĞďĞĐĂƵƐĞƐŽŽŶLJŽƵǁŽƵůĚďĞŽǀĞƌǁŚĞůŵĞĚ
ǁŝƚŚĞǀĞƌLJƚŚŝŶŐƚŚĂƚĐŽƵůĚŐŽǁƌŽŶŐĂŶĚĞŶĚƵƉŶĞǀĞƌƚĂŬŝŶŐĂŶLJĂĐƟŽŶ͘/ƚ͛ƐĂůƐŽŶŽƚĞĸĐŝĞŶƚƚŽũƵƐƚ
ƚĂŬĞĂĐƟŽŶǁŝƚŚŽƵƚŚĂǀŝŶŐƐŽŵĞŬŝŶĚŽĨƉůĂŶŝŶƉůĂĐĞďĞĐĂƵƐĞǁŝƚŚŽƵƚĂƉůĂŶŝƚǁŝůůďĞĚŝĸĐƵůƚƚŽŬŶŽǁ
ŝĨLJŽƵĂƌĞĞǀĞŶŚĞĂĚĞĚŝŶƚŚĞƌŝŐŚƚĚŝƌĞĐƟŽŶ͘/ŶƐƚĞĂĚ͕ŵĂŬĞĂƉůĂŶǁŝƚŚƚŚĞŬŶŽǁůĞĚŐĞƚŚĂƚLJŽƵůŝŬĞůLJǁŝůů
ŚĂǀĞƚŽďĞŇĞdžŝďůĞĂŶĚĂĚũƵƐƚLJŽƵƌŐŽĂůƐƟŵĞůŝŶĞĂƐLJŽƵŐŽ͘ĞŐŝŶƚŽĂĐƚŽŶƚŚĂƚƉůĂŶĂƐƐŽŽŶĂƐƉŽƐƐŝďůĞ
ĂŶĚƚŚĞŶĐŽŶƟŶƵĂůůLJŐŽƚŚƌŽƵŐŚĂĐLJĐůĞŽĨĂĐƟŶŐĂŶĚƌĞǀŝƐŝŶŐĂŶĚĂĐƟŶŐĂŶĚƌĞǀŝƐŝŶŐ͘ZĞŵĞŵďĞƌƚŚĂƚ
Ă ĨĂŝůƵƌĞ ŝƐ ŽŶůLJ Ă ĨĂŝůƵƌĞ ŝĨ LJŽƵ ůĞĂƌŶ ŶŽƚŚŝŶŐ ĨƌŽŵ ŝƚ͘ dŚĞ ĞŶƚƌĞƉƌĞŶĞƵƌŝĂů ƉƌŽĐĞƐƐ͕ ǁŚŝĐŚ ƚĂŬĞƐ LJŽƵ
ĨƌŽŵŝĚĞĂƐƚŽĂĐƟŽŶ͕ŝƐŽŶĞŽĨĐŽŶƐƚĂŶƚůĞĂƌŶŝŶŐĂŶĚƉƌŽďůĞŵͲƐŽůǀŝŶŐ͘ƚƟŵĞƐŝƚŵĂLJŶŽƚĨĞĞůůŝŬĞLJŽƵ
ĂƌĞŵĂŬŝŶŐĂŶLJƉƌŽŐƌĞƐƐŽƌƚŚĂƚLJŽƵĐĂŶ͛ƚŐŽĂŶLJĨƵƌƚŚĞƌ͕ďƵƚLJŽƵũƵƐƚŚĂǀĞƚŽŬĞĞƉŐŽŝŶŐĂŶĚƚŚŝŶŬ
ĐƌĞĂƟǀĞůLJ͘ŵďƌĂĐĞƚŚĞĐŚĂůůĞŶŐĞ͊ŶĚƌĞŵĞŵďĞƌƚŽĂůǁĂLJƐŬĞĞƉĂƉŽƐŝƟǀĞĂƫƚƵĚĞ͊

dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ | Doing | 185

 Lesson 12.2: Planning for Obstacles
KŶĞǁĂLJƚŽƉƌĞƉĂƌĞĨŽƌŽďƐƚĂĐůĞƐLJŽƵŵĂLJĨĂĐĞŝƐďLJďƌĂŝŶƐƚŽƌŵŝŶŐƉŽƚĞŶƟĂůĐŚĂůůĞŶŐĞƐĂŶĚƚŚŝŶŬŝŶŐ
ŽĨǁĂLJƐƚŚĂƚLJŽƵǁŽƵůĚǁŽƌŬƚŽŽǀĞƌĐŽŵĞƚŚĞŵ͘ZĞŵĞŵďĞƌ͕ŝƚŝƐŽŬĂLJŝĨLJŽƵŚĂǀĞŶ͛ƚĐŽŶƐŝĚĞƌĞĚĞǀĞƌLJ
ŽďƐƚĂĐůĞLJŽƵƌƵŶŝŶƚŽ͕ďƵƚŚĂǀŝŶŐĂƉůĂŶƚŽŽǀĞƌĐŽŵĞƐŽŵĞŽĨƚŚĞƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐǁŝůůŚĞůƉLJŽƵƚŽĨĞĞů
ŵŽƌĞƉƌĞƉĂƌĞĚǁŚĞŶƐƚĂƌƟŶŐLJŽƵƌďƵƐŝŶĞƐƐ͘

&ŽƌĞdžĂŵƉůĞ͕'ƌĂĐĞĂŶĚ^ĂŵƵĞůŚĂǀĞďƌĂŝŶƐƚŽƌŵĞĚĂŶĚŝĚĞŶƟĮĞĚƚŚĞĨŽůůŽǁŝŶŐƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐĂŶĚ
ƉŽƚĞŶƟĂůƉůĂŶƐĨŽƌŽǀĞƌĐŽŵŝŶŐƚŚŽƐĞŽďƐƚĂĐůĞƐĨŽƌƚŚĞŝƌĨƌŝĞŶĚ͛ƐdƌĂƐŚZĞŵŽǀĂůďƵƐŝŶĞƐƐ͘

KďƐƚĂĐůĞ
Clients have indicated that they would
like to utilize the removal service for items
larger than the bicycle wagon can hold.
WůĂŶƚŽKǀĞƌĐŽŵĞKďƐƚĂĐůĞ
Schedule one day a month or every few
months that you can borrow or rent a larger
vehicle to transport the large items in a
ZD\WKDWZLOOVWLOOEHSURŤWDEOH

Some local competitors have lower prices
for their trash removal services.
Metropolis will stay on top of research and
the price structure of their competitors.
Additionally, at times when competitors
lower their prices and Metropolis can not,
Metropolis could initiate a loyalty program
or a promotional campaign.

Their cleaning supplies supplier turns out to Metropolis will have a backup list of
be unreliable and does not get products to suppliers in the area to use in case of
them on time. emergency. This list will help to determine
a new supplier going forward.

Exercise 12.2: Your Obstacles

dŚŝŶŬĂďŽƵƚƐŽŵĞŽĨƚŚĞŽďƐƚĂĐůĞƐLJŽƵƚŚŝŶŬLJŽƵŵŝŐŚƚĞŶĐŽƵŶƚĞƌĂƐLJŽƵĚĞǀĞůŽƉLJŽƵƌďƵƐŝŶĞƐƐ͘
/ƚŵŝŐŚƚďĞŚĞůƉĨƵůƚŽĚŝƐĐƵƐƐLJŽƵƌďƵƐŝŶĞƐƐŝĚĞĂǁŝƚŚƐŽŵĞŽŶĞĞůƐĞĂŶĚĂƐŬƚŚĞŵƚŽŚĞůƉLJŽƵ
ďƌĂŝŶƐƚŽƌŵ ĂďŽƵƚ ƚŚĞ ŽďƐƚĂĐůĞƐ LJŽƵ ŵŝŐŚƚ ĞŶĐŽƵŶƚĞƌ͘ ^ŽŵĞƟŵĞƐ ǁĞ ďĞĐŽŵĞ ƚŽŽ ĨŽĐƵƐĞĚ ŽŶ
ŽƵƌŽǁŶŐŽĂůƐĂŶĚĐĂŶ͛ƚƐĞĞƚŚŝŶŐƐƚŚĂƚŽƚŚĞƌƐŵŝŐŚƚƐĞĞ͘>ŝƐƚƐŽŵĞŽĨƚŚĞƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐ
LJŽƵŚĂǀĞŝĚĞŶƟĮĞĚďĞůŽǁĂŶĚŐĞŶĞƌĂƚĞƉŽƐƐŝďůĞƉůĂŶƐƚŽŽǀĞƌĐŽŵĞƚŚĞƐĞŽďƐƚĂĐůĞƐŝŶƚŚĞƐƉĂĐĞ
ƉƌŽǀŝĚĞĚ͘

KďƐƚĂĐůĞ WůĂŶƚŽKǀĞƌĐŽŵĞKďƐƚĂĐůĞ

186 | Doing | dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ

 Lesson 12.3: Overcoming Obstacles
tŚŝůĞŝƚĐĂŶďĞƵƐĞĨƵůƚŽƚŚŝŶŬĂďŽƵƚƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐ͕LJŽƵǁŝůůŶĞǀĞƌďĞĂďůĞƚŽƉůĂŶĂŶĚƉƌĞǀĞŶƚ
ĞǀĞƌLJŽďƐƚĂĐůĞ͘dŚĞŬĞLJŝŶƐƚĞĂĚŝƐƚŽŚĂǀĞĂƉŽƐŝƟǀĞŵŝŶĚͲƐĞƚĂŶĚƚŚĞŇĞdžŝďŝůŝƚLJƚŽƌĞĂĐƚƚŽŽďƐƚĂĐůĞƐĂƐ
ƚŚĞLJĂƌŝƐĞ͘dŚŝƐŝƐĞĂƐŝĞƌƐĂŝĚƚŚĂŶĚŽŶĞ͘KǀĞƌĐŽŵŝŶŐĂŶŽďƐƚĂĐůĞŵŝŐŚƚŵĞĂŶĚŽŝŶŐƐŽŵĞƚŚŝŶŐĂůůŽǀĞƌ
ĂŐĂŝŶ͕ǁŚŝĐŚĐĂŶďĞĨƌƵƐƚƌĂƟŶŐĂŶĚƉĞƌŚĂƉƐŵĂŬĞLJŽƵĨĞĞůůŝŬĞŐŝǀŝŶŐƵƉ͘EŽƚĞƚŚĂƚďŽƚŚŽĨƚŚĞƐĞĨĞĞůŝŶŐƐ
ʹ ĨƌƵƐƚƌĂƟŽŶ ĂŶĚ ĚĞƐƉĞƌĂƟŽŶ ʹ ĂƌĞ ĚƌŝǀĞŶ ďLJ ŽƵƚƐŝĚĞ ĨŽƌĐĞƐ ďƵƚ ĐŽŵĞ ĨƌŽŵ ǁŝƚŚŝŶ LJŽƵ͘ zŽƵ ŵŝŐŚƚ
ďĞƵŶĂďůĞƚŽĐŽŶƚƌŽůǁŚĂƚŽďƐƚĂĐůĞƐĂƌŝƐĞ͕ďƵƚLJŽƵĐĂŶĐŽŶƚƌŽůƚŚĞǁĂLJLJŽƵƌĞĂĐƚƚŽƚŚŽƐĞŽďƐƚĂĐůĞƐ͘
dŚĞƌĞĂƌĞǁĂLJƐƚŚĂƚLJŽƵĐĂŶƉƌĞƉĂƌĞLJŽƵƌƐĞůĨƚŽŚĂŶĚůĞŽďƐƚĂĐůĞƐĂŶĚƌĞĂĐƚŵŽƌĞƉŽƐŝƟǀĞůLJǁŚĞŶLJŽƵ
ĞŶĐŽƵŶƚĞƌƚŚĞŵ͘dŚĞĨŽůůŽǁŝŶŐĞdžĞƌĐŝƐĞƐƉƌŽǀŝĚĞƐŽŵĞĞdžĂŵƉůĞƐ͘

Exercise 12.3: Build a Support Network

<ŶŽǁŝŶŐLJŽƵŚĂǀĞŽƚŚĞƌƐǁŚŽĂƌĞƐƵƉƉŽƌƟǀĞŽĨLJŽƵĂŶĚǁĂŶƚƚŽƐĞĞLJŽƵĚŽǁĞůůŝŶůŝĨĞŝƐƉƌŽďĂďůLJ
ŽŶĞŽĨƚŚĞďĞƐƚǁĂLJƐƚŽŚĞůƉLJŽƵĨĞĞůĐĂƉĂďůĞŽĨŽǀĞƌĐŽŵŝŶŐŽďƐƚĂĐůĞƐ͘^ŽŵĞƟŵĞƐũƵƐƚŚĂǀŝŶŐ
ƐŽŵĞŽŶĞĞůƐĞǁŚŽďĞůŝĞǀĞƐŝŶLJŽƵŝƐĞŶŽƵŐŚƚŽŵĂŬĞLJŽƵĨĞĞůůŝŬĞLJŽƵĐĂŶĐŚĂŶŐĞƚŚĞǁŽƌůĚ͘&Žƌ
ƚŚŝƐĞdžĞƌĐŝƐĞ͕ĂƐŬƚŚƌĞĞŝŵƉŽƌƚĂŶƚƉĞŽƉůĞŝŶLJŽƵƌůŝĨĞ͕ƉƌĞĨĞƌĂďůLJŽůĚĞƌƚŚĂŶLJŽƵĂŶĚŝŶĂƉŽƐŝƟŽŶŽĨ
ƐŽŵĞĂƵƚŚŽƌŝƚLJ͕ƚŽďĞƉĂƌƚŽĨLJŽƵƌƐƵƉƉŽƌƚŶĞƚǁŽƌŬ͘dŚĞƐĞƐŚŽƵůĚďĞƉĞŽƉůĞLJŽƵĐĂŶŐŽƚŽǁŚĞŶ
LJŽƵĂƌĞĨĞĞůŝŶŐůŝŬĞŐŝǀŝŶŐƵƉ͘dŚĞLJĚŽŶŽƚŶĞĞĚƚŽŬŶŽǁĂŶLJƚŚŝŶŐĂďŽƵƚĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŽƌLJŽƵƌ
ďƵƐŝŶĞƐƐͶƚŚĞLJũƵƐƚŶĞĞĚƚŽďĞƚŚĞƌĞƚŽůŝƐƚĞŶƚŽLJŽƵĂŶĚŐŝǀĞLJŽƵǁŽƌĚƐŽĨĞŶĐŽƵƌĂŐĞŵĞŶƚ͘>ŝƐƚ
ƚŚĞŶĂŵĞƐŽĨƉĞŽƉůĞďĞůŽǁĂŌĞƌƚŚĞLJĂŐƌĞĞƚŽƐƵƉƉŽƌƚLJŽƵ͘

EĂŵĞ͗ ____________ ZĞůĂƟŽŶƐŚŝƉƚŽLJŽƵ͗_______________

EĂŵĞ͗ ____________ ZĞůĂƟŽŶƐŚŝƉƚŽLJŽƵ͗_______________

EĂŵĞ͗ ____________ ZĞůĂƟŽŶƐŚŝƉƚŽLJŽƵ͗_______________

Exercise 12.4: WŝĐŬDĞhƉ͊

tŚĞŶĐŽŶĨƌŽŶƚĞĚǁŝƚŚŽďƐƚĂĐůĞƐ͕ŝƚŝƐĞĂƐLJƚŽůŽƐĞĐŽŶĮĚĞŶĐĞŝŶLJŽƵƌƐĞůĨĂŶĚĨŽƌŐĞƚƚŚĞƉĂƐƐŝŽŶ
LJŽƵŽŶĐĞŚĞůĚĨŽƌLJŽƵƌŝĚĞĂƐ͘/ŶƚŚŝƐĞdžĞƌĐŝƐĞ͕ǁƌŝƚĞǁŽƌĚƐŽĨĞŶĐŽƵƌĂŐĞŵĞŶƚƚŽLJŽƵƌƐĞůĨďĞůŽǁ͘
dŚŝƐ ĐŽƵůĚ ďĞ Ă ĐŽŵƉůŝŵĞŶƚ ƚŽ LJŽƵƌƐĞůĨ͕ Ă ĐŽŵƉůŝŵĞŶƚ ƐŽŵĞŽŶĞ ĞůƐĞ ƐĂŝĚ ƚŽ LJŽƵ͕ LJŽƵƌ ǀŝƐŝŽŶ
ĨŽƌƚŚĞĨƵƚƵƌĞ͕ŽƌƉĞƌŚĂƉƐĂƋƵŽƚĞƚŚĂƚLJŽƵĮŶĚƉĂƌƟĐƵůĂƌůLJŵŽƟǀĂƟŶŐĂŶĚƵƉůŝŌŝŶŐ͘dŚŝƐǁĂLJ
ǁŚĞŶĞǀĞƌ LJŽƵ ĂƌĞ ĨĞĞůŝŶŐ ůŝŬĞ ŐŝǀŝŶŐ ƵƉ Žƌ ǁŚĞŶ LJŽƵ ĂƌĞ ĚĞĂůŝŶŐ ǁŝƚŚ Ă ƉĂƌƟĐƵůĂƌůLJ ĚŝĸĐƵůƚ
ŽďƐƚĂĐůĞ͕LJŽƵĐĂŶũƵƐƚƚƵƌŶƚŽƚŚŝƐƉĂŐĞĂŶĚŚŽƉĞĨƵůůLJƚŚĞƐĞǁŽƌĚƐǁŝůůƌĞŵŝŶĚLJŽƵŽĨŚŽǁŐƌĞĂƚ
LJŽƵĂƌĞĂŶĚŚĞůƉLJŽƵĨĞĞůƌĞĂĚLJƚŽĐŽŶƋƵĞƌƚŚĞǁŽƌůĚĂŐĂŝŶ͊

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dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ | Doing | 187

 Lesson 12.4: Commit to Your Goals
ĞǀĞůŽƉŝŶŐŐŽĂůƐĂŶĚĂƟŵĞůŝŶĞĨŽƌŵĞĞƟŶŐƚŚĞƐĞŐŽĂůƐŝƐŐƌĞĂƚ͕ďƵƚĂĐƚƵĂůůLJĂĐŚŝĞǀŝŶŐƚŚĞŵŝƐĐĞƌƚĂŝŶůLJ
ĂŶŽƚŚĞƌƚŚŝŶŐ͘,ŽǁĐĂŶLJŽƵďĞƐƵƌĞƚŚĂƚLJŽƵĂĐŚŝĞǀĞƚŚĞƐĞŐŽĂůƐŽƌĂƚůĞĂƐƚĂƌĞŚĞĂĚĞĚŝŶƚŚĞƌŝŐŚƚ
ĚŝƌĞĐƟŽŶ͍dŚĞƚƌƵƚŚŝƐƚŚĂƚŶŽŽŶĞĐĂŶŐƵĂƌĂŶƚĞĞƚŚŝƐ͘ƵƚƚŚĞŽŶĞƚŚŝŶŐƚŚĂƚŝƐŶĞĞĚĞĚŝƐĐŽŵŵŝƚŵĞŶƚ
ŽŶLJŽƵƌƉĂƌƚ͘zŽƵŚĂǀĞƚŽďĞůŝĞǀĞŝŶLJŽƵƌƐĞůĨĂŶĚďĞůŝĞǀĞƚŚĂƚLJŽƵĐĂŶƌĞĂĐŚLJŽƵƌŐŽĂůƐ͘dŽďĞůŝĞǀĞŝŶ
LJŽƵƌƐĞůĨ͕LJŽƵŚĂǀĞƚŽŚĂǀĞĂƌĞĂůŝƐƟĐƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨLJŽƵƌĐĂƉĂďŝůŝƟĞƐĂŶĚĐŽŶƐŝĚĞƌǁŚĂƚLJŽƵƌĞĂůůLJĐĂŶ
ĂĐŚŝĞǀĞŐŝǀĞŶƚŚĞƐĞĐĂƉĂďŝůŝƟĞƐĂŶĚLJŽƵƌƌĞƐŽƵƌĐĞƐ͘/ƚĚŽĞƐŶ͛ƚƉĂLJƚŽĐŽŵŵŝƚƚŽŐŽĂůƐƚŚĂƚĂƌĞƵŶƌĞĂůŝƐƟĐ
ŽƌŶŽƚĂĐŚŝĞǀĂďůĞʹŝƚǁŝůůŽŶůLJĐƌĞĂƚĞĨƌƵƐƚƌĂƟŽŶĨŽƌLJŽƵ͘

tŚŝůĞLJŽƵŵĂLJŬŶŽǁLJŽƵƌĐĂƉĂďŝůŝƟĞƐďĞƩĞƌƚŚĂŶĂŶLJŽŶĞĞůƐĞ͕ďĞĨŽƌĞLJŽƵĐŽŵŵŝƚƚŽŐŽĂůƐLJŽƵŵŝŐŚƚ
ǁĂŶƚƚŽĚŝƐĐƵƐƐƚŚĞŵǁŝƚŚĨĂŵŝůLJŽƌĨƌŝĞŶĚƐ͘dŚĞLJĂůƐŽŬŶŽǁLJŽƵǁĞůůĂŶĚƉƌŽďĂďůLJŬŶŽǁǁŚĂƚLJŽƵĂƌĞ
ĐĂƉĂďůĞŽĨĂĐŚŝĞǀŝŶŐ͘ŝƐĐƵƐƐŝŶŐLJŽƵƌŐŽĂůƐǁŝƚŚƚŚĞŵŵŝŐŚƚĞǀĞŶƐƉƵƌLJŽƵŽŶƚŽďŝŐŐĞƌŐŽĂůƐƐŝŶĐĞƚŚĞLJ
ŵĂLJŚĂǀĞĞǀĞŶŵŽƌĞĐŽŶĮĚĞŶĐĞŝŶLJŽƵƚŚĂŶLJŽƵĚŽŝŶLJŽƵƌƐĞůĨ͘&ĂŵŝůLJĂŶĚĨƌŝĞŶĚƐĐĂŶĂůƐŽƐĞƌǀĞĂƐĂ
ƌĞĂůŝƚLJĐŚĞĐŬĂŶĚŵĂŬĞƐƵƌĞƚŚĂƚLJŽƵĂƌĞŶŽƚƐĞƫŶŐLJŽƵƌƐĞůĨƵƉĨŽƌĨĂŝůƵƌĞďLJĂŝŵŝŶŐƚŽŽŚŝŐŚǁŝƚŚLJŽƵƌ
ŐŽĂůƐ͘

/ŶƚŚĞĞŶĚ͕ĂĐŚŝĞǀŝŶŐLJŽƵƌŐŽĂůƐƌĞĂůůLJĐŽŵĞƐĚŽǁŶƚŽLJŽƵ͘zŽƵŬŶŽǁLJŽƵƌƐĞůĨďĞƩĞƌƚŚĂŶĂŶLJŽŶĞĞůƐĞ
ĂŶĚƚŚĞŵŽƟǀĂƟŽŶƚŽĂĐŚŝĞǀĞLJŽƵƌŐŽĂůƐŵƵƐƚĐŽŵĞĨƌŽŵǁŝƚŚŝŶ͘KƚŚĞƌƐĐĂŶŽīĞƌĂĚǀŝĐĞĂŶĚƐƵƉƉŽƌƚ͕
ďƵƚLJŽƵƌĂĐƟŽŶƐĂƌĞĂůůƚŚĂƚŵĂƩĞƌ͘tŚŝůĞLJŽƵŶĞĞĚƚŽůŝƐƚĞŶƚŽŽƚŚĞƌƐƚŽŚĞůƉLJŽƵƐŚĂƉĞLJŽƵƌŐŽĂůƐ͕
ĚŽŶ͛ƚ ďĞ ĚĞƚĞƌƌĞĚ ďLJ ƚŚŽƐĞ ǁŚŽ ŵĂLJ ŶŽƚ ƐŚĂƌĞ LJŽƵƌ ƉĂƐƐŝŽŶ ĂŶĚ ĐŽŵŵŝƚŵĞŶƚ͘ DŽǀĞ ĨƌŽŵ ŝĚĞĂƐ ƚŽ
ĂĐƟŽŶďLJƐĞƫŶŐŐŽĂůƐĂŶĚŵĂŬĞĂĐŽŵŵŝƚŵĞŶƚƚŽLJŽƵƌƐĞůĨƚŽĂĐŚŝĞǀĞƚŚŽƐĞŐŽĂůƐ͘

Exercise 12.5: Commit to Yourself

/ŶƚŚĞƐƉĂĐĞďĞůŽǁǁƌŝƚĞĂŵĞƐƐĂŐĞƚŽLJŽƵƌƐĞůĨĂďŽƵƚǁŚĂƚƉĞƌƐŽŶĂůĂŶĚƉƌŽĨĞƐƐŝŽŶĂůŐŽĂůƐ
LJŽƵǁŽƵůĚůŝŬĞƚŽĂĐĐŽŵƉůŝƐŚŝŶƚŚĞŶĞdžƚƐŝdžŵŽŶƚŚƐ͘ĞƐƉĞĐŝĮĐĂŶĚƌĞĂůŝƐƟĐĂŶĚŵĂŬĞƐƵƌĞ
ƚŚĞŐŽĂůƐLJŽƵůŝƐƚĂƌĞƚŚŝŶŐƐƚŚĂƚLJŽƵǁŝůůƉƵƌƐƵĞǁŝƚŚƉĂƐƐŝŽŶĂŶĚĞŶĞƌŐLJ͘ŽŵĞďĂĐŬƚŽƚŚŝƐ
ƉĂŐĞŝŶƐŝdžŵŽŶƚŚƐĂŶĚƌĞǀŝĞǁƚŚĞƐĞŐŽĂůƐ͘ǀĂůƵĂƚĞLJŽƵƌƐƵĐĐĞƐƐŝŶƌĞĂĐŚŝŶŐƚŚĞŵĂŶĚƚŚŝŶŬ
ĂďŽƵƚ ƚŚĞ ƌĞĂƐŽŶƐ LJŽƵ ǁĞƌĞ Žƌ ǁĞƌĞ ŶŽƚ ƐƵĐĐĞƐƐĨƵů͘ ĂƐĞĚ ŽŶ ƚŚŝƐ ƌĞǀŝĞǁ͕ ǁŽƵůĚ LJŽƵ ŚĂǀĞ
ĚŽŶĞĂŶLJƚŚŝŶŐĚŝīĞƌĞŶƚůLJĂƐLJŽƵƉƵƌƐƵĞĚƚŚĞƐĞŐŽĂůƐŽǀĞƌƚŚĞƉĂƐƚƐŝdžŵŽŶƚŚƐ͍

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188 | Doing | dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ

 ZĞŇĞĐƟŽŶ͗ dĂŬŝŶŐĐƟŽŶ
ŌĞƌ ůĞĂƌŶŝŶŐ ĂďŽƵƚ ĂĐƟŽŶ ƉůĂŶƐ ĂŶĚ ŐŽĂůƐ ƟŵĞ ůŝŶĞƐ͕ ǁŚLJ ĚŽ LJŽƵ ƚŚŝŶŬ ŝƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ
ĐŽŵƉůĞƚĞďŽƚŚŽĨƚŚĞƐĞƐƚĞƉƐďĞĨŽƌĞǁŽƌŬŝŶŐŽŶŐĞƫŶŐLJŽƵƌďƵƐŝŶĞƐƐƐƚĂƌƚĞĚ͍tŚĂƚǁĂƐLJŽƵƌ
ŵŽƐƚŝŵƉŽƌƚĂŶƚƚĂŬĞĂǁĂLJĨƌŽŵƚŚŝƐĐŚĂƉƚĞƌ͍ŝƐĐƵƐƐƚŚĞƉŽƚĞŶƟĂůŽďƐƚĂĐůĞƐƚŚĂƚLJŽƵƚŚŝŶŬLJŽƵ
ǁŝůůĐŽŶĨƌŽŶƚŝŶƐƚĂƌƟŶŐLJŽƵƌďƵƐŝŶĞƐƐĂŶĚŚŽǁLJŽƵŵŝŐŚƚŽǀĞƌĐŽŵĞƚŚĞŵ͘ƌĞƚŚĞƌĞĂŶLJƉůĂŶƐ
ĨŽƌŽǀĞƌĐŽŵŝŶŐŽďƐƚĂĐůĞƐƚŚĂƚƐƚĂŶĚŽƵƚŝŶLJŽƵƌŵŝŶĚĂƐŐŽŽĚŝĚĞĂƐƚŚĂƚLJŽƵĐŽƵůĚƉŽƚĞŶƟĂůůLJ
ƵƐĞŝŶƚŚĞĨƵƚƵƌĞ͍

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ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
_______________________________________ ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
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ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
_______________________________________ ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘
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dĂŬŝŶŐĐƟŽŶĂŶĚKǀĞƌĐŽŵŝŶŐKďƐƚĂĐůĞƐ | Doing | 189

>> Growing Your
Business

Create A Process
ĚĂƉƚ

13
ŝǀĞƌƐŝĨLJ
KŶĐĞLJŽƵŚĂǀĞLJŽƵƌďƵƐŝŶĞƐƐƵƉĂŶĚƌƵŶŶŝŶŐ͕ĂůŵŽƐƚŝŵŵĞĚŝĂƚĞůLJLJŽƵǁŝůůŶĞĞĚƚŽƐƚĂƌƚƚŽ
ƚŚŝŶŬĂďŽƵƚǁĂLJƐƚŽƐƵƐƚĂŝŶĂŶĚŐƌŽǁLJŽƵƌďƵƐŝŶĞƐƐ͘dŚĞƌĞĂƌĞŵĂŶLJǁĂLJƐƚŽĚŽƚŚŝƐŽŶĐĞLJŽƵ
ŚĂǀĞĞƐƚĂďůŝƐŚĞĚLJŽƵƌƐĞůĨŝŶƚŚĞŵĂƌŬĞƚ͘dŚŝƐĐŚĂƉƚĞƌǁŝůůƉƌĞƐĞŶƚLJŽƵǁŝƚŚƐŽŵĞŝĚĞĂƐĂďŽƵƚ
ŚŽǁLJŽƵŵŝŐŚƚďĞĂďůĞƚŽĞdžƉĂŶĚLJŽƵƌďƵƐŝŶĞƐƐ͘

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Complementary products:ƉƌŽĚƵĐƚƐ Diversifying:ĂƐƚƌĂƚĞŐLJƚŽŝŶĐƌĞĂƐĞ

ƚŚĂƚŝŵƉƌŽǀĞƚŚĞĞdžƉĞƌŝĞŶĐĞŽĨ ƉƌŽĮƚĂďŝůŝƚLJďLJĨŽĐƵƐŝŶŐŽŶŽīĞƌŝŶŐ
ƚŚĞŽƚŚĞƌŽƌĂƌĞĐŽŵŵŽŶůLJƐŽůĚŽƌ ŶĞǁƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐ͕ĞdžƉĂŶĚŝŶŐ
ďŽƵŐŚƚĂƐĂƉĂŝƌ͘ ŝŶƚŽŶĞǁĐƵƐƚŽŵĞƌŵĂƌŬĞƚƐ͕Žƌ
ŝĚĞŶƟĨLJŝŶŐŽƚŚĞƌǁĂLJƐƚŽĞdžƉĂŶĚ
Employee:ĂƉĞƌƐŽŶǁŚŽǁŽƌŬƐ
ǁŚĂƚƚŚĞďƵƐŝŶĞƐƐŽīĞƌƐ͘
ŝŶƚŚĞƐĞƌǀŝĐĞŽĨĂŶŽƚŚĞƌƵŶĚĞƌĂ
ĐŽŶƚƌĂĐƚƚŚĂƚŐŝǀĞƐƚŚĞĞŵƉůŽLJĞƌƚŚĞ
ƌŝŐŚƚƚŽĐŽŶƚƌŽůƚŚĞĚĞƚĂŝůƐŽĨƚŚĞ
ǁŽƌŬƉĞƌĨŽƌŵĂŶĐĞ͘

Customer log:ĂƌĞĐŽƌĚŽĨǁŚĂƚ
ĂĐƵƐƚŽŵĞƌďƵLJƐ͕ǁŚĞŶƚŚĞLJďƵLJ
ŝƚ͕ŚŽǁŵƵĐŚƚŚĞLJƉĂLJĂŶĚŽƚŚĞƌ
ƌĞůĞǀĂŶƚŝŶĨŽƌŵĂƟŽŶƚŚĂƚǁŝůůŚĞůƉ
ƚŚĞďƵƐŝŶĞƐƐŝĚĞŶƟĨLJƉĂƩĞƌŶƐŽĨ
ĐƵƐƚŽŵĞƌďĞŚĂǀŝŽƌ͘
 Lesson 13.1: Create a Process
ƐLJŽƵƌďƵƐŝŶĞƐƐŐƌŽǁƐ͕ŝƚǁŝůůƉƌŽďĂďůLJďĞĐŽŵĞŝŶĐƌĞĂƐŝŶŐůLJĚŝĸĐƵůƚƚŽƐĂƟƐĨLJƚŚĞĚĞŵĂŶĚĨƌŽŵLJŽƵƌ
ĐƵƐƚŽŵĞƌƐ͘ zŽƵ ŶĞĞĚ ƚŽ ĮŶĚ Ă ǁĂLJ ƚŽ ĚĞůŝǀĞƌ Ă ĐŽŶƐŝƐƚĞŶƚůLJ ŚŝŐŚͲƋƵĂůŝƚLJ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ǁŝƚŚŽƵƚ
ŚĂǀŝŶŐƚŽďĞƉĞƌƐŽŶĂůůLJŝŶǀŽůǀĞĚŝŶĞǀĞƌLJĚĞƚĂŝůŽĨƚŚĞďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐ͘&ŽƌĞdžĂŵƉůĞ͕ƉƌĞƚĞŶĚƚŚĂƚ
LJŽƵƐƚĂƌƚĞĚƐĞůůŝŶŐŚĂŶĚŵĂĚĞŶĞĐŬůĂĐĞƐĂĨĞǁǁĞĞŬƐĂŐŽ͕ďƵƚŶŽǁĞǀĞƌLJŽŶĞŝƐďƵLJŝŶŐLJŽƵƌŶĞĐŬůĂĐĞƐ
ĂŶĚLJŽƵŬĞĞƉƌƵŶŶŝŶŐŽƵƚ͘zŽƵŶĞĞĚƚŽŚŝƌĞŽƚŚĞƌƉĞŽƉůĞƚŽŚĞůƉLJŽƵŵĂŬĞŶĞĐŬůĂĐĞƐ͘ƵƚďĞĨŽƌĞLJŽƵ
ĐĂŶĚŽƚŚĂƚLJŽƵŶĞĞĚƚŽĐƌĞĂƚĞĞĂƐLJƚŽĨŽůůŽǁ͕ĐŽŶƐŝƐƚĞŶƚŝŶƐƚƌƵĐƟŽŶƐĨŽƌŵĂŬŝŶŐŶĞĐŬůĂĐĞƐƐŽƚŚĂƚƚŚŽƐĞ
LJŽƵŚŝƌĞĐĂŶƉƌŽĚƵĐĞƚŚĞƐĂŵĞŚĂŶĚŵĂĚĞƋƵĂůŝƚLJƉƌŽĚƵĐƚ͘zŽƵŶĞĞĚƚŽŵĂŬĞŝƚƐŽƚŚĂƚƐŽŵĞŽŶĞĞůƐĞ
ĐĂŶďĞƚƌĂŝŶĞĚƚŽĐŽŵƉůĞƚĞĂůůƚŚĞƚĂƐŬƐͬƉƌŽĐĞƐƐĞƐLJŽƵĚŽŽŶĂĚĂLJͲƚŽͲĚĂLJďĂƐŝƐĞĸĐŝĞŶƚůLJĂŶĚǁŝƚŚĂ
ŚŝŐŚƐƚĂŶĚĂƌĚŽĨƋƵĂůŝƚLJ͘ŽŝŶŐƚŚŝƐĂůƐŽŐŝǀĞƐLJŽƵŵŽƌĞƟŵĞƚŽƚŚŝŶŬĂďŽƵƚƚŚĞǀŝƐŝŽŶŽĨLJŽƵƌďƵƐŝŶĞƐƐ
ƌĂƚŚĞƌƚŚĂŶďĞŝŶŐĐĂƵŐŚƚƵƉŝŶƚŚĞĚĞƚĂŝůƐŽĨĚĂLJͲƚŽͲĚĂLJŽƉĞƌĂƟŽŶƐ͘zŽƵƌďƵƐŝŶĞƐƐŵĂLJŽƌŵĂLJŶŽƚŚĂǀĞ
ƐƚĂƌƚĞĚǁŝƚŚŵƵůƟƉůĞŽǁŶĞƌƐŽƌĞŵƉůŽLJĞĞƐ͘ŝƚŚĞƌǁĂLJ͕ƚŚĞƌĞŵĂLJĐŽŵĞĂƟŵĞǁŚĞŶLJŽƵǁŝůůŶĞĞĚƚŽ
ĂĚĚŵŽƌĞŵĞŵďĞƌƐƚŽLJŽƵƌƚĞĂŵ͘

Exercise 13.1: Analyzing Your Business

tŚŝůĞLJŽƵŵĂLJŶŽƚLJĞƚďĞƌĞĂĚLJƚŽĨŽĐƵƐŽŶŐƌŽǁŝŶŐLJŽƵƌďƵƐŝŶĞƐƐĂŶĚďƵŝůĚŝŶŐLJŽƵƌƚĞĂŵ͕ĐĂŶ
LJŽƵƚŚŝŶŬŽĨƉƌŽĐĞƐƐĞƐŽƌƚĂƐŬƐƚŚĂƚLJŽƵŚĂǀĞĂůƌĞĂĚLJŝĚĞŶƟĮĞĚŝŶLJŽƵƌŽǁŶďƵƐŝŶĞƐƐƚŚĂƚLJŽƵ
ŵŝŐŚƚďĞĂďůĞƚŽƐƚĂŶĚĂƌĚŝnjĞĂŶĚƚƌĂŝŶŽƚŚĞƌƐƚŽĚŽ͍tŚLJĚŽLJŽƵƚŚŝŶŬƚŚĞƐĞƚĂƐŬƐĂƌĞƚŚĞďĞƐƚ
ƚŽƉŽƚĞŶƟĂůůLJĂƐƐŝŐŶƚŽŽƚŚĞƌƐ͍

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ŌĞƌ LJŽƵ ŚĂǀĞ ƐƚĂƌƚĞĚ LJŽƵƌ ŽǁŶ ďƵƐŝŶĞƐƐ ĂŶĚ LJŽƵ ďĞŐŝŶ ƚŽ ďĞĐŽŵĞ ǁĞůůͲĞƐƚĂďůŝƐŚĞĚ ŝŶ LJŽƵƌ ŵĂƌŬĞƚ
ǁŝƚŚĂƐŽůŝĚĐƵƐƚŽŵĞƌďĂƐĞ͕ŝƚŝƐƟŵĞƚŽƚŚŝŶŬĂďŽƵƚĞdžƉĂŶĚŝŶŐ͘dŚĞƌĞŝƐŽŶůLJƐŽŵƵĐŚƚŚĂƚŽŶĞƉĞƌƐŽŶ
ĐĂŶĂĐĐŽŵƉůŝƐŚŽŶŚŝƐŽƌŚĞƌŽǁŶ͕ƐŽŝƚŵŝŐŚƚďĞƟŵĞƚŽƚŚŝŶŬĂďŽƵƚĂĚĚŝŶŐĞŵƉůŽLJĞĞƐǁŚŽĐŽƵůĚŚĞůƉ
LJŽƵŐƌŽǁLJŽƵƌďƵƐŝŶĞƐƐ͘&ŽƌĞdžĂŵƉůĞ͕ŝĨƚŚĞdƌĂƐŚZĞŵŽǀĂůďƵƐŝŶĞƐƐŝƐƌƵŶŶŝŶŐƐƵĐĐĞƐƐĨƵůůLJĂŶĚŐƌŽǁŝŶŐ͕
ƚŚĞLJŵŝŐŚƚĐŽŶƐŝĚĞƌŚŝƌŝŶŐƚŚĞĨŽůůŽǁŝŶŐĞŵƉůŽLJĞĞƐƚŽĨƌĞĞƐŽŵĞŽĨƚŚĞŝƌƟŵĞƚŽĨŽĐƵƐŽŶŐƌŽǁŝŶŐƚŚĞŝƌ
ďƵƐŝŶĞƐƐĞǀĞŶŵŽƌĞƌĂƉŝĚůLJ͗

ͻĚĚŝƟŽŶĂůƐŽƌƚĞƌƐ͗ŶŽƚŚĞƌƐŽƌƚĞƌĐŽƵůĚŵŽǀĞƚŚĞƉƌŽĐĞƐƐĂůŽŶŐŵŽƌĞƋƵŝĐŬůLJĂŶĚĞĸĐŝĞŶƚůLJ͘
ͻDĂƌŬĞƟŶŐĂƐƐŽĐŝĂƚĞ͗^ŽŵĞŽŶĞǁŝƚŚĞdžƚĞŶƐŝǀĞŬŶŽǁůĞĚŐĞŝŶŵĂƌŬĞƟŶŐǁŚŽĐĂŶŚĞůƉƚŚĞŵƌƵŶ
ĂŵŽƌĞŝŶƚĞŶƐĞŵĂƌŬĞƟŶŐĐĂŵƉĂŝŐŶĨŽƌƚŚĞŝƌƐĞƌǀŝĐĞƐ͘
• Book keeper:^ŽŵĞŽŶĞǁŚŽĐĂŶŚĞůƉƚŚĞŵĐŽŵƉŝůĞĚĂƚĂŽŶƚŚĞŝƌďƵƐŝŶĞƐƐ͕ŝŶĐůƵĚŝŶŐƐĂůĞƐĂŶĚ
ƉƵƌĐŚĂƐĞĚĂƚĂ͕ǁŚŝĐŚǁŝůůďĞŽŶĞůĞƐƐƚĂƐŬƚŚĞLJŚĂǀĞƚŽĐŽŵƉůĞƚĞŽŶƚŚĞŝƌŽǁŶ͘

ĞĐŝĚŝŶŐƚŽŐƌŽǁLJŽƵƌƚĞĂŵĂŶĚĞdžƉĂŶĚLJŽƵƌďƵƐŝŶĞƐƐŝƐŶŽƚƐŽŵĞƚŚŝŶŐƚŚĂƚƐŚŽƵůĚďĞƚĂŬĞŶůŝŐŚƚůLJ͕ĂƐ
ŶĞǁĞŵƉůŽLJĞĞƐĂĚĚŵŽƌĞƌŝƐŬ;ĂƌĞƚŚĞƉĞŽƉůĞLJŽƵĂƌĞůĞƫŶŐŝŶƚŽLJŽƵƌďƵƐŝŶĞƐƐƌĞůŝĂďůĞĂŶĚƚƌƵƐƚǁŽƌƚŚLJ͍Ϳ
ĂŶĚĂĚĚŵŽƌĞĞdžƉĞŶƐĞƐ;ŶĞǁĞŵƉůŽLJĞĞƐĂůĂƌŝĞƐͿƚŽLJŽƵƌďƵƐŝŶĞƐƐŵŽĚĞů͘ĞĨŽƌĞŚŝƌŝŶŐĂŶĞǁĞŵƉůŽLJĞĞ͕
ŵĂŬĞƐƵƌĞƚŚĂƚLJŽƵƌďƵƐŝŶĞƐƐĐĂŶĂīŽƌĚŝƚ;ǁĞŝŐŚƚŚĞĐƵƌƌĞŶƚƌŝƐŬŽĨĂĚĚŝŶŐĂŶĞǁƐĂůĂƌLJƚŽLJŽƵƌƉĂLJƌŽůů
ǀĞƌƐƵƐƚŚĞƉŽƚĞŶƟĂůƉĂLJŽīŝŶƚŚĞĨƵƚƵƌĞŝĨĂĚĚŝŶŐƚŚĞĞŵƉůŽLJĞĞĞŶĂďůĞƐLJŽƵƚŽĞdžƉĂŶĚLJŽƵƌďƵƐŝŶĞƐƐͿ͕
ĞdžƚĞŶƐŝǀĞůLJŝŶƚĞƌǀŝĞǁƚŚĂƚƉĞƌƐŽŶ͕ĂŶĚĐŚĞĐŬŚŝƐŽƌŚĞƌĐƌĞĚŝďŝůŝƚLJĂŶĚƌĞůŝĂďŝůŝƚLJǁŝƚŚŽƵƚƐŝĚĞƐŽƵƌĐĞƐ͘

'ƌŽǁŝŶŐzŽƵƌƵƐŝŶĞƐƐ | Doing | 193

 Exercise 13.2: Your Team
dŚŝŶŬŽĨƉŽƚĞŶƟĂůĞŵƉůŽLJĞĞƐƚŚĂƚLJŽƵĐŽƵůĚŚŝƌĞŝŶƚŚĞĨƵƚƵƌĞĂƐLJŽƵƌďƵƐŝŶĞƐƐŐƌŽǁƐ͘/ŶƚŚĞĐŚĂƌƚ
ďĞůŽǁ͕ůŝƐƚƚŚĞƐĞĞŵƉůŽLJĞĞƐ͕ŝĚĞŶƟĨLJƚŚĞƌŽůĞLJŽƵǁŽƵůĚĞdžƉĞĐƚƚŚĞŵƚŽƉůĂLJŝŶLJŽƵƌďƵƐŝŶĞƐƐ͕
ĂŶĚŶŽƚĞƐŽŵĞŽĨƚŚĞƐŬŝůůƐLJŽƵǁŽƵůĚĞdžƉĞĐƚƚŚĞŵƚŽŚĂǀĞ͘

ŵƉůŽLJĞĞdŝƚůĞ ZŽůĞŵƉůŽLJĞĞ^ŚŽƵůĚWůĂLJ džƉĞĐƚĞĚŵƉůŽLJĞĞ^ŬŝůůƐ

džĂŵƉůĞ͗ŽŽŬŬĞĞƉĞƌ
ŽŵƉŝůĞĚĂƚĂŽŶƚŚĞ
ďƵƐŝŶĞƐƐ͕ƐƵĐŚĂƐƉƵƌĐŚĂƐĞ
ĂŵŽƵŶƚƐĂŶĚƉƌŝĐĞƐ͕ƐĂůĞƐ
ĂŵŽƵŶƚƐĂŶĚƉƌŝĐĞƐ͕ŽƚŚĞƌ
ĞdžƉĞŶƐĞƐ͕ĚĂŝůLJƉƌŽĮƚ͕ĞƚĐ͘
'ĞŶĞƌĂůĂĐĐŽƵŶƟŶŐ
ŬŶŽǁůĞĚŐĞ͖ŽƌŐĂŶŝnjĂƟŽŶĂů
ƐŬŝůůƐ͖ƉƌĞǀŝŽƵƐ
ŬŬĞĞƉŝŶŐĞdžƉĞƌŝĞŶĐĞ

Lesson 13.2: Adapt

ŶŽƚŚĞƌǁĂLJƚŽŐƌŽǁLJŽƵƌďƵƐŝŶĞƐƐŝƐƚŽĐĂƌĞĨƵůůLJĂŶĂůLJnjĞǁŚĂƚLJŽƵŽďƐĞƌǀĞŚĂƉƉĞŶŝŶŐĂŶĚĂĐŬŶŽǁůĞĚŐĞ
ǁŚĂƚŝƐĂŶĚŝƐŶŽƚǁŽƌŬŝŶŐƚŚĞǁĂLJLJŽƵǁĂŶƚŝƚƚŽ͘dŚŝƐŝƐĐĞƌƚĂŝŶůLJĞĂƐŝĞƌƐĂŝĚƚŚĂŶĚŽŶĞ͘<ĞĞƉŝŶŐĂ
ĐƵƐƚŽŵĞƌ ůŽŐ ŝƐ ŽŶĞ ǁĂLJ ƚŽ ƐĞĞ ǁŚĂƚ ŝƐ ǁŽƌŬŝŶŐ͘  ĐƵƐƚŽŵĞƌ ůŽŐ ŝƐ ŶŽƚ ŶĞĐĞƐƐĂƌŝůLJ Ă ĨŽƌŵĂů ƉĂƌƚ ŽĨ
LJŽƵƌƌĞĐŽƌĚŬĞĞƉŝŶŐŽƌĂĐĐŽƵŶƟŶŐƐLJƐƚĞŵ͕ďƵƚŝƚŝƐƐŝŵƉůLJĂǁĂLJƚŽŚĞůƉLJŽƵŬĞĞƉƚƌĂĐŬŽĨǁŚĂƚLJŽƵƌ
ĐƵƐƚŽŵĞƌƐ ďƵLJ͕ ŚŽǁ ŽŌĞŶ ƚŚĞLJ ĂƌĞ ďƵLJŝŶŐ ĂŶĚ ĂŶLJ ŽƚŚĞƌ ŽďƐĞƌǀĂƟŽŶƐ LJŽƵ ŵŝŐŚƚ ŵĂŬĞ ĂďŽƵƚ ƚŚĞŝƌ
ƉƵƌĐŚĂƐŝŶŐďĞŚĂǀŝŽƌ͘:ƵƐƚũŽƫŶŐĚŽǁŶƐŽŵĞŶŽƚĞƐŝŶĂŶŽƚĞŬĐĂŶƐĞƌǀĞĂƐLJŽƵƌůŽŐĂŶĚŚĞůƉLJŽƵ
ƚŽƐĞĞǁŚŝĐŚƉƌŽĚƵĐƚƐĂƌĞƉŽƉƵůĂƌĂŶĚǁŚŝĐŚĂƌĞŶŽƚ͘ZĞŵĞŵďĞƌ͕LJŽƵĐĂŶŽŶůLJƐĞĞƉĂƩĞƌŶƐŽǀĞƌƟŵĞ
ƐŽŬĞĞƉĚŽŝŶŐƚŚŝƐ͘ŽŶŽƚũƵŵƉƚŽĐŽŶĐůƵƐŝŽŶƐĂŌĞƌƚŚĞĮƌƐƚĚĂLJŽĨƐĂůĞƐ͘ŌĞƌƐŽŵĞƟŵĞŚĂƐƉĂƐƐĞĚ͕
LJŽƵĐĂŶďĞŐŝŶƚŽƐĞĞǁŚĂƚĂƌĞLJŽƵƌŵŽƐƚƉŽƉƵůĂƌƉƌŽĚƵĐƚƐĂŶĚďĞŐŝŶƚŽĂŶĂůLJnjĞǁŚLJ͘/ĨLJŽƵĮŶĚƚŚĂƚ
ƐŽŵĞƚŚŝŶŐŝƐŶ͛ƚǁŽƌŬŝŶŐǁĞůů͕ĚŽŶ͛ƚŐŝǀĞƵƉŽŶŝƚĐŽŵƉůĞƚĞůLJ͊dŚĞƌĞŵĂLJďĞǁĂLJƐƚŽĐŚĂŶŐĞƚŚĞƉƌŽĚƵĐƚ
ŽƌƐĞƌǀŝĐĞƚŽŝŵƉƌŽǀĞŝƚ͕ĂŶĚƐƵŐŐĞƐƟŽŶƐĨŽƌƚŚĞƐĞĐŚĂŶŐĞƐĂƌĞůŝŬĞůLJƚŽĐŽŵĞĨƌŽŵǁŚĂƚLJŽƵŽďƐĞƌǀĞ
ĂďŽƵƚLJŽƵƌƐƵĐĐĞƐƐĨƵůƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐ͘/ŶƚŚĞĞŶĚ͕ŚŽǁĞǀĞƌ͕ŵĂŬĞƐƵƌĞLJŽƵĂƌĞŽďũĞĐƟǀĞŝŶLJŽƵƌ
ĚĞĐŝƐŝŽŶŵĂŬŝŶŐƉƌŽĐĞƐƐ͘zŽƵŵŝŐŚƚůŽǀĞƐŽŵĞƚŚŝŶŐLJŽƵĂƌĞƚƌLJŝŶŐƚŽƐĞůů͕ďƵƚŝĨŝƚŝƐƵŶƉƌŽĮƚĂďůĞĂŶĚ
LJŽƵƌĐƵƐƚŽŵĞƌƐĚŽŶŽƚƐĞĞŵƚŽůŝŬĞŝƚ͙ŝƚŵŝŐŚƚďĞƟŵĞƚŽŐĞƚƌŝĚŽĨŝƚŽƌŵŽĚŝĨLJŝƚ͘

dŚĞ ƚƌĂƐŚ ƌĞŵŽǀĂů ďƵƐŝŶĞƐƐ ŝƐ ĚŽŝŶŐ ƌĞůĂƟǀĞůLJ ǁĞůů ĂŶĚ ƚŚĞLJ ŚĂǀĞ ďĞĞŶ ĐŽŵƉŝůŝŶŐ ĚĂƚĂ ŽŶ ƚŚĞŝƌ
ĐƵƐƚŽŵĞƌƐĂŶĚƚŚĞŝƌŚĂďŝƚƐŝŶƉƵƌĐŚĂƐŝŶŐ͘dŚĞLJƐƚĂƌƚƚŽƌĞǀŝĞǁƚŚĞĚĂƚĂƚŚĂƚƚŚĞLJ͛ǀĞĐŽŵƉŝůĞĚŽǀĞƌ
ƚŚĞĨĞǁŵŽŶƚŚƐƚŚĞďƵƐŝŶĞƐƐŚĂƐďĞĞŶŽƉĞŶĂŶĚĚĞƚĞƌŵŝŶĞĚƚŚĞĨŽůůŽǁŝŶŐ͗

194 | Doing | 'ƌŽǁŝŶŐLJŽƵƌƵƐŝŶĞƐƐ

 /ŶĚŝǀŝĚƵĂů
ŽƐƚƉĞƌ ^ĞůůŝŶŐƉƌŝĐĞ
EƵŵďĞƌ ƉƌŽĮƚƉĞƌ
ƉƌŽĚƵĐƚŽƌ ƉĞƌƉƌŽĚƵĐƚ dŽƚĂůƉƌŽĮƚ
^ŽůĚ ƉƌŽĚƵĐƚ
ƐĞƌǀŝĐĞ ŽƌƐĞƌǀŝĐĞ ;Ϳdž;Ϳ
;Ϳ ŽƌƐĞƌǀŝĐĞ
;Ϳ ;Ϳ
;Ϳс;ͿͲ;Ϳ

KŶĞƟŵĞŽŶůLJ
ϭϮ ϰ͘ϬϬ ϴ͘ϬϬ ϰ͘ϬϬ ϰϴ͘ϬϬ
ƐĐŚĞĚƵůĞĚƉŝĐŬƵƉ

ϱŵŽŶƚŚƉŝĐŬƵƉ
ϭϬ͘ϬϬ Ϯϱ͘ϬϬ ϭϱ͘ϬϬ ϮϮϱ͘ϬϬ
ƉĂĐŬĂŐĞ ϭϱ

^ƉĞĐŝĂůƟŵĞƉŝĐŬ
7 ϭϬ͘ϬϬ ϯϬ͘ϬϬ ϮϬ͘ϬϬ ϭϰϬ͘ϬϬ
ƵƉƐ

Bags ϯϲ Ϭ͘ϭϬ Ϭ͘ϱϬ Ϭ͘ϰϬ ϭϰ͘ϰϬ

KƚŚĞƌůĞĂŶŝŶŐ
Ϯϰ ϭ͘ϬϬ Ϯ͘ϬϬ ϭ͘ϬϬ Ϯϰ͘ϬϬ
^ƵƉƉůŝĞƐ

ŽůůĞĐƟŶŐĚĂƚĂůŝŬĞƚŚŝƐŝƐǀĞƌLJŝŵƉŽƌƚĂŶƚ͘/ƚĐĂŶŚĞůƉDĞƚƌŽƉŽůŝƐŝĚĞŶƟĨLJƉƌŽĚƵĐƚƐƚŚĞLJƐŚŽƵůĚĞůŝŵŝŶĂƚĞ͕
ƐƚŽĐŬŵŽƌĞŽƌƉƌŽŵŽƚĞŵŽƌĞŽŌĞŶ͘ƐLJŽƵƌďƵƐŝŶĞƐƐŐƌŽǁƐ͕LJŽƵǁŝůůǁĂŶƚƚŽĐƌĞĂƚĞĂƐŝŵŝůĂƌƐLJƐƚĞŵƚŽ
ƚƌĂĐŬŚŽǁLJŽƵƌƉƌŽĚƵĐƚƐĂƌĞƐĞůůŝŶŐĂŶĚĨŽƌǁŚĂƚƉƌŽĮƚĞĂĐŚŝƐƌĞƐƉŽŶƐŝďůĞ͘

tŚŝůĞĂĐƵƐƚŽŵĞƌůŽŐŝƐĂŐƌĞĂƚǁĂLJŽĨĐĂƉƚƵƌŝŶŐƚŚĞƉƌŽĮƚĨƌŽŵĂƚƌĂŶƐĂĐƟŽŶ͕ŝƚŵĂLJŶŽƚďĞĐŽŵƉůĞƚĞůLJ
ƌĞŇĞĐƟǀĞŽĨƚŚĞƐƚƌĞŶŐƚŚŽĨĞĂĐŚƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ĞĨŽƌĞƚŚĞďƵƐŝŶĞƐƐƐƚŽƉƐƉƌŽǀŝĚŝŶŐĂŶLJƐĞƌǀŝĐĞ
ŽƌƐĞůůŝŶŐĂŶLJƉƌŽĚƵĐƚƐ͕ƚŚĞLJŚĂǀĞƚŽĐŽŶƐŝĚĞƌǁŚĞƚŚĞƌƚŚĞŝƌĐƵƐƚŽŵĞƌƐǁŝůůĐŚŽŽƐĞƚŽƵƐĞƚŚĞŝƌŽƚŚĞƌ
ƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐŝĨƚŚĞĐƵƌƌĞŶƚŽŶĞŝƐĚŝƐĐŽŶƟŶƵĞĚ͘&ŽƌŝŶƐƚĂŶĐĞ͕DĞƚƌŽƉŽůŝƐŚĂƐůĞĂƌŶĞĚĨƌŽŵƚŚĞŝƌ
ĐƵƐƚŽŵĞƌƐ ƚŚĂƚ ĐƵƐƚŽŵĞƌƐ ǁŚŽ ƉƵƌĐŚĂƐĞ ƚŚĞ ůŽǁ ŵĂƌŐŝŶ ƚƌĂƐŚ ďĂŐƐ ĂƌĞ ŵŽƌĞ ůŝŬĞůLJ ƚŽ ƉĂLJ ĨŽƌ ƚŚĞŝƌ
ŚŝŐŚĞƌͲŵĂƌŐŝŶƉŝĐŬƵƉƐĞƌǀŝĐĞƐ͘dŚĞƌĞĨŽƌĞ͕DĞƚƌŽƉŽůŝƐǁŝůůǁĂŶƚƚŽĐŽŶƟŶƵĞƚŽƐĞůůƚŚĞďĂŐƐ͘

ZĞŵĞŵďĞƌƚŚĂƚŝĚĞŶƟĨLJŝŶŐƚŚĞƐƚƌĞŶŐƚŚƐĂŶĚǁĞĂŬŶĞƐƐĞƐŽĨLJŽƵƌďƵƐŝŶĞƐƐŝƐĂŶŽŶŐŽŝŶŐƉƌŽĐĞƐƐ͘zŽƵ
ǁŝůůǁĂŶƚƚŽĐŽŶƟŶƵĂůůLJĞǀĂůƵĂƚĞLJŽƵƌŽƉĞƌĂƟŽŶƐĂŶĚĚĞƚĞƌŵŝŶĞǁŚĂƚŝƐǁŽƌŬŝŶŐĂŶĚǁŚĂƚŝƐŶ͛ƚĂŶĚ
ĚĞǀĞůŽƉĂŶĂĐƟŽŶƉůĂŶĨŽƌĂĚĚƌĞƐƐŝŶŐLJŽƵƌǁĞĂŬŶĞƐƐĞƐĂŶĚĨŽĐƵƐŝŶŐŽŶLJŽƵƌƐƚƌĞŶŐƚŚƐ͘

Lesson 13.3: Diversify

KŶĐĞLJŽƵŝĚĞŶƟĨLJƚŚĞƐƚƌĞŶŐƚŚƐĂŶĚǁĞĂŬŶĞƐƐĞƐŽĨLJŽƵƌďƵƐŝŶĞƐƐ͕LJŽƵŵŝŐŚƚĐŽŶƐŝĚĞƌĚŝǀĞƌƐŝĨLJŝŶŐLJŽƵƌ
ďƵƐŝŶĞƐƐ͘dŽĚŝǀĞƌƐŝĨLJLJŽƵƌďƵƐŝŶĞƐƐŵĞĂŶƐƚŽĞdžƉĂŶĚƚŚĞŬŝŶĚƐŽĨƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐƚŚĂƚLJŽƵŽīĞƌ͘
tŚĞŶLJŽƵĚŽƚŚŝƐ͕ďĞƐƵƌĞƚŽďƵŝůĚŽŶLJŽƵƌƐƚƌĞŶŐƚŚƐĂŶĚĂǀŽŝĚƚĂŬŝŶŐĂĐƟŽŶƐƚŚĂƚŵŝŐŚƚǁĞĂŬĞŶǁŚĂƚ
LJŽƵĂƌĞĂůƌĞĂĚLJĚŽŝŶŐ͘

KŶĞĞdžĂŵƉůĞŽĨĚŝǀĞƌƐŝĨLJŝŶŐŝƐƚŽŽīĞƌŶĞǁƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐƚŚĂƚĐŽŵƉůĞŵĞŶƚLJŽƵƌĐŽƌĞďƵƐŝŶĞƐƐ͘
dŚŝƐ ŵĞĂŶƐ ƚŚĂƚ LJŽƵ ǁŝůů ĂĚĚ ƉƌŽĚƵĐƚƐ Žƌ ƐĞƌǀŝĐĞƐ ƚŚĂƚ LJŽƵ ƚŚŝŶŬ LJŽƵƌ ĞdžŝƐƟŶŐ ĐƵƐƚŽŵĞƌƐ ĐŽƵůĚ ƵƐĞ
ŽƌƚŚĂƚǁŚĂƚĂĚĚƐŽŵĞƚŚŝŶŐƚŚĂƚŝƐĐůŽƐĞůLJƌĞůĂƚĞĚƚŽǁŚĂƚLJŽƵĂůƌĞĂĚLJŽīĞƌ͘&ŽƌĞdžĂŵƉůĞ͕ƚŚĞdƌĂƐŚ
ZĞŵŽǀĂůďƵƐŝŶĞƐƐŵĂLJŽŶĞĚĂLJĚĞĐŝĚĞƚŽĞdžƚĞŶĚƚŚĞŝƌƐĞƌǀŝĐĞƐƚŽŝŶĐůƵĚĞĂĚĚŝƟŽŶĂůĐůĞĂŶŝŶŐƐĞƌǀŝĐĞƐ͘
^ŽŽŶ͕ƚŚĞLJŵŝŐŚƚďĞĐŽŵĞŬŶŽǁŶĂƐƚŚĞŽǁŶĞƌƐŽĨĂďƵƐŝŶĞƐƐƚŚĂƚĐĂŶĂĚĚƌĞƐƐŵƵůƟƉůĞĐůĞĂŶŝŶŐŶĞĞĚƐŝŶ
ƚŚĞĐŽŵŵƵŶŝƚLJ͘ZĞŵĞŵďĞƌ͕ŚŽǁĞǀĞƌ͕ƚŚĂƚĚŝǀĞƌƐŝĨLJŝŶŐLJŽƵƌďƵƐŝŶĞƐƐǁŝůůĐŽƐƚŵŽŶĞLJ͘dŚĞƌĞĂƌĞĂůǁĂLJƐ
ĂĚĚŝƟŽŶĂůĞdžƉĞŶƐĞƐŝŶĐƵƌƌĞĚǁŚĞŶĂĚĚŝŶŐŶĞǁƉƌŽĚƵĐƚƐ͘DĂŬĞƐƵƌĞLJŽƵůŽŽŬďĂĐŬƚŽŽƚŚĞƌĐŚĂƉƚĞƌƐŽĨ
ƚŚŝƐŬĂƐLJŽƵĐŽŶƐŝĚĞƌĚŝǀĞƌƐŝĨLJŝŶŐƚŽŐƵŝĚĞLJŽƵƌĚĞĐŝƐŝŽŶƉƌŽĐĞƐƐǁŝƚŚLJŽƵƌŵŝƐƐŝŽŶ͕ŵĂƌŬĞƚƌĞƐĞĂƌĐŚ͕
ĂŶĚLJŽƵƌĮŶĂŶĐŝĂůƐŝƚƵĂƟŽŶ͘

'ƌŽǁŝŶŐzŽƵƌƵƐŝŶĞƐƐ | Doing | 195

 Exercise 13.3: Complementary Products
dŚŝƐĞdžĞƌĐŝƐĞŝƐƚŽŚĞůƉLJŽƵƚŚŝŶŬĂďŽƵƚǁĂLJƐƚŚĂƚǀĂƌŝŽƵƐďƵƐŝŶĞƐƐĞƐĐŽƵůĚĞdžƉĂŶĚŝŶƚŽĚŝīĞƌĞŶƚ
ƉƌŽĚƵĐƚ ůŝŶĞƐ͘ /ĚĞŶƟĨLJ ƚŚƌĞĞ ĐŽŵƉůĞŵĞŶƚĂƌLJ ƉƌŽĚƵĐƚƐ ƚŚĂƚ ĞĂĐŚ ŽĨ ƚŚĞ ĨŽůůŽǁŝŶŐ ďƵƐŝŶĞƐƐĞƐ
ŵŝŐŚƚŽīĞƌ͗

&ŝƐŚĞƌŵĂŶ

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,Ăŝƌ^ĂůŽŶ

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ƌƚ^ƚŽƌĞ

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zŽƵƌƵƐŝŶĞƐƐ

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KŶĐĞLJŽƵƐƚĂƌƚƚŚŝŶŬŝŶŐĂďŽƵƚĐŽŵƉůĞŵĞŶƚĂƌLJƉƌŽĚƵĐƚƐŽƌƐĞƌǀŝĐĞƐĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͕LJŽƵǁŝůůŶĞĞĚƚŽĚŽ
ƌĞƐĞĂƌĐŚĂŶĚĐŽŵĞƵƉǁŝƚŚĂƉůĂŶĨŽƌŝŵƉůĞŵĞŶƟŶŐƚŚĞŶĞǁƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘&ŽƌĞdžĂŵƉůĞ͕LJŽƵŶĞĞĚ
ƚŽŝĚĞŶƟĨLJĂƐƵƉƉůŝĞƌ͕ĚĞǀĞůŽƉƚŚĞƉƌŽĐĞƐƐĞƐĨŽƌƐĞůůŝŶŐƚŚŝƐƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͕ĚĞƚĞƌŵŝŶĞŚŽǁŵƵĐŚ
LJŽƵǁŝůůƐĞůůƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĨŽƌ͕ĞƚĐ͘/ŶĂǁĂLJ͕ŝƚ͛ƐĂůŵŽƐƚůŝŬĞŐŽŝŶŐďĂĐŬƚŽƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚŝƐ
ǁŽƌŬŬĂŶĚƐƚĂƌƟŶŐĂůůŽǀĞƌĂŐĂŝŶĨŽƌƚŚŝƐŶĞǁƉĂƌƚŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘KŶĐĞLJŽƵŚĂǀĞŝŵƉůĞŵĞŶƚĞĚ
ƚŚĞŶĞǁƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͕LJŽƵǁŝůůŶĞĞĚƚŽĐŽŶƟŶƵĂůůLJĂŶĂůLJnjĞǁŚĂƚŝƐŚĂƉƉĞŶŝŶŐƚŽĚĞƚĞƌŵŝŶĞŝĨŝƚŝƐ
ĂƐƵĐĐĞƐƐĨƵůĂĚĚŝƟŽŶƚŽLJŽƵƌďƵƐŝŶĞƐƐ͘ZĞŵĞŵďĞƌ͕ŶŽƚĞǀĞƌLJƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞǁŝůůďĞĂƐƵĐĐĞƐƐʹĞǀĞŶ
ŝĨŝƚƐŽƵŶĚĞĚůŝŬĞĂŐƌĞĂƚĂĚĚŝƟŽŶƚŽLJŽƵƌďƵƐŝŶĞƐƐ͕ŝƚŵĂLJŶŽƚǁŽƌŬŽƵƚƚŚĞǁĂLJLJŽƵǁĂŶƚŝƚƚŽ͘ĞƌĞĂĚLJ
ƚŽĂĚĂƉƚĂŶĚĐŚĂŶŐĞ͊

196 | Doing | 'ƌŽǁŝŶŐLJŽƵƌƵƐŝŶĞƐƐ

 ZĞŇĞĐƟŽŶ͗ Growth
'ƌŽǁŝŶŐLJŽƵƌďƵƐŝŶĞƐƐŝƐŶŽƚĂŶĞĂƐLJƚĂƐŬ͘/ƚƚĂŬĞƐĂůŽƚŽĨĞǀĂůƵĂƟŽŶĂŶĚĂůŽƚŽĨǁŽƌŬ͘zŽƵŶĞĞĚ
ƚŽůŽŽŬĂƚĂůůƚŚĞƉŝĞĐĞƐŽĨLJŽƵƌďƵƐŝŶĞƐƐʹŶŽƚũƵƐƚLJŽƵƌƉƌŽĚƵĐƚƐ͊zŽƵŵŝŐŚƚĮŶĚƚŚĂƚƚŚĞƉƌŝĐŝŶŐ
ŶĞĞĚƐ ƚŽ ĐŚĂŶŐĞ͕ Žƌ ƚŚĂƚ LJŽƵƌ ŵĂƌŬĞƟŶŐ ƉůĂŶƐ ĂƌĞŶ͛ƚ ǁŽƌŬŝŶŐ ĨŽƌ ŽŶĞ ƌĞĂƐŽŶ Žƌ ĂŶŽƚŚĞƌ͘ dŚĞ
ďƵƐŝŶĞƐƐƉůĂŶŶŝŶŐƉƌŽĐĞƐƐŶĞǀĞƌĞŶĚƐ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽĐŽŶƐƚĂŶƚůLJĞǀĂůƵĂƚĞLJŽƵƌďƵƐŝŶĞƐƐĂŶĚ
ŵĂŬĞƐƵƌĞƚŚĂƚĞǀĞƌLJƉŝĞĐĞŵĂŬĞƐƐĞŶƐĞ͘hƐĞƚŚŝƐƐƉĂĐĞƚŽƌĞŇĞĐƚLJŽƵƌŝĚĞĂƐĨŽƌĨƵƚƵƌĞŐƌŽǁƚŚ͘

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_______________________________________ ǀĞƌLJŐŽŽĚĞŶƚƌĞƉƌĞŶĞƵƌ
ǁŝůůŚĂǀĞƚŽƌĞǀŝƐĞƚŚĞŝƌƉůĂŶƐ
_______________________________________ ŽǀĞƌĂŶĚŽǀĞƌĂŐĂŝŶĂƐƚŚĞLJ
ŐĂŝŶŶĞǁŝŶƐŝŐŚƚƐ͘ZĞŵĞŵďĞƌƚŽ
_______________________________________ ůĞĂǀĞƐŽŵĞƐƉĂĐĞƚŽĐŽŵĞďĂĐŬ͕
ƌĞǀŝƐŝƚLJŽƵƌƌĞŇĞĐƟŽŶ͕ĂŶĚĂĚĚ
_______________________________________ ŵŽƌĞƚŚŽƵŐŚƚƐĂƐŶĞĞĚĞĚ͘

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'ƌŽǁŝŶŐzŽƵƌƵƐŝŶĞƐƐ | Doing | 197

>> Entrepreneurship
of All Kinds

zŽƵĂƌĞĂŶŶƚƌĞƉƌĞŶĞƵƌ

14
WƌĂĐƟĐŝŶŐŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ
ŶƚƌĞƉƌĞŶĞƵƌŝĂů>ĞĂĚĞƌƐŚŝƉ
/ŶƚŚŝƐĐŚĂƉƚĞƌ͕ǁĞ͛ůůĚŝƐĐƵƐƐƚŚĞǁĂLJƐLJŽƵĐĂŶĂƉƉůLJƚŚĞƐŬŝůůƐLJŽƵ͛ǀĞŐĂŝŶĞĚƚŚƌŽƵŐŚŽƵƚƚŚŝƐ
ŬƚŽLJŽƵƌĞǀĞƌLJĚĂLJůŝĨĞ͊

/ŵƉŽƌƚĂŶƚtŽƌĚƐƚŽ<ŶŽǁ

Entrepreneurial Leadership:ĨŽƌŵ
ŽĨůĞĂĚĞƌƐŚŝƉƚŚĂƚƉƌĂĐƟĐĞƐƚŚĞƐŬŝůůƐ
ŽĨĂŶĞŶƚƌĞƉƌĞŶĞƵƌŝŶĞǀĞƌLJĂƐƉĞĐƚ
ŽĨůŝĨĞƚŽďƌŝŶŐŝŶŶŽǀĂƟŽŶĂŶĚĂĐƟŽŶ
ƚŽĂůůƚŚĂƚLJŽƵĚŽ͘
 Lesson 14.1: You Are an Entrepreneur
ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŝƐĞǀĞƌLJǁŚĞƌĞ͘ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉŝƐĂƉƌŽďůĞŵƐŽůǀŝŶŐƚĞĐŚŶŝƋƵĞĂŶĚǁĂLJŽĨƚŚŝŶŬŝŶŐŝŶ
ǁŚŝĐŚĂƉƌŽďůĞŵ͕ĂǁĂŶƚŽƌŶĞĞĚŽĨĂŐƌŽƵƉŽĨƉĞŽƉůĞ͕ŝƐŝĚĞŶƟĮĞĚĂƐĂŶŽƉƉŽƌƚƵŶŝƚLJ͘dŚĂƚŽƉƉŽƌƚƵŶŝƚLJ
ŝƐ ƚŚĞŶ ĂƉƉƌŽĂĐŚĞĚ ƚŚƌŽƵŐŚ ƚŚĞ ƉƌĂĐƟĐĞ ŽĨ ĂĐƟŶŐ ǁŝƚŚ ƚŚĞ ƌĞƐŽƵƌĐĞƐ ĂǀĂŝůĂďůĞ͕ ůŝŵŝƟŶŐ ƌŝƐŬ ďLJ
ƵŶĚĞƌƐƚĂŶĚŝŶŐŽŶĞ͛ƐƐĞůĨ͕ĂǀĂŝůĂďůĞƌĞƐŽƵƌĐĞƐĂŶĚƌĞůĂƟǀĞĞŶǀŝƌŽŶŵĞŶƚ͕ĂĐŬŶŽǁůĞĚŐŝŶŐƚŚĞƵŶŬŶŽǁŶ͕
ĂŶĚƚŚĞŶůĞĂƌŶŝŶŐĨƌŽŵƚŚĞƐƵĐĐĞƐƐĞƐĂŶĚĨĂŝůƵƌĞƐŽĨƚŚĞĂĐƟŽŶŽƌĂĐƟŽŶƐƚĂŬĞŶ͘

ŶƚƌĞƉƌĞŶĞƵƌƐ ƐŽůǀĞ ƉƌŽďůĞŵƐ ďĞĐĂƵƐĞ ĞŶƚƌĞƉƌĞŶĞƵƌƐ ƐĞĞ ƉƌŽďůĞŵƐ ĂƐ ŽƉƉŽƌƚƵŶŝƟĞƐ͘ tĞ Ăůů ĨĂĐĞ
ƉƌŽďůĞŵƐŝŶĂůůĂƌĞĂƐŽĨŽƵƌůŝǀĞƐͲďŽƚŚǁŽƌŬĂŶĚƉĞƌƐŽŶĂů͘dŚĞƐŬŝůůƐLJŽƵ͛ǀĞůĞĂƌŶĞĚŝŶƚŚŝƐƉƌŽŐƌĂŵĂƌĞ
>/&ƐŬŝůůƐ͕ǁŚŝĐŚLJŽƵĐĂŶƵƐĞŝŶĂŶLJƉƌŽũĞĐƚLJŽƵƵŶĚĞƌƚĂŬĞ͕ŽƌǁŝƚŚŝŶĂŶLJŽƌŐĂŶŝnjĂƟŽŶŝŶǁŚŝĐŚLJŽƵƚĂŬĞ
ƉĂƌƚ͘

ŶƚƌĞƉƌĞŶĞƵƌƐĂĚĚƌĞƐƐŽƉƉŽƌƚƵŶŝƟĞƐƵƐŝŶŐƚŚĞƌĞƐŽƵƌĐĞƐƚŚĞLJŚĂǀĞŽŶŚĂŶĚͲďŽƚŚǁŚĞŶƚŚĞLJ͛ƌĞƐƚĂƌƟŶŐ
ĂǀĞŶƚƵƌĞ͕EŝŶƚŚĞŝƌĞǀĞƌLJĚĂLJůŝĨĞ͘/ŶĚŽŝŶŐƐŽ͕ĞŶƚƌĞƉƌĞŶĞƵƌƐƚĂŬĞƐŵĂůůƐƚĞƉƐͲĞǀĞƌLJĚĂLJĂĐƟŽŶƐƚŚĂƚ
ŵŽǀĞ ƚŚĞŵ Ă ďŝƚ ĐůŽƐĞƌ ƚŽ ƚŚĞŝƌ ŐŽĂůƐ Ͳ ĂŶĚ ƚŚĞŶ ůĞĂƌŶ ĨƌŽŵ ƚŚŽƐĞ ĂĐƟŽŶƐ͘ dŚĞLJ ƌĞƉĞĂƚ ƚŚŝƐ ƉƌŽĐĞƐƐ͕
ĐŽŶƟŶƵĂůůLJŵŽǀŝŶŐĨŽƌǁĂƌĚƵƐŝŶŐƚŚĞůĞƐƐŽŶƐƚŚĞLJ͛ǀĞůĞĂƌŶĞĚ͕ŝŶĂŵŽƌĞŝŶĨŽƌŵĞĚǁĂLJ͘

Act

Build Learn

dŚĞ͞Đƚх>ĞĂƌŶхƵŝůĚ͟ŵŽĚĞůͲǁŚŝĐŚǁĞƚĂůŬĞĚĂďŽƵƚŝŶŚĂƉƚĞƌKŶĞͲĐĂŶďĞƵƐĞĚŝŶĞǀĞƌLJĚĂLJůŝĨĞ͘
,ŽǁĐĂŶLJŽƵƵƐĞƚŚŝƐƉƌŽĐĞƐƐŽƵƚƐŝĚĞŽĨĐƌĞĂƟŶŐĂďƵƐŝŶĞƐƐ͍>Ğƚ͛ƐůŽŽŬĂƚĂĨĞǁĞdžĂŵƉůĞƐ͘

>Ğƚ͛ƐŝŵĂŐŝŶĞƚŚĂƚLJŽƵǁĂŶƚƚŽƐƚĂƌƚǁĂůŬŝŶŐƚŽƐĐŚŽŽůƚĂŬŝŶŐĂĚŝīĞƌĞŶƚƌŽƵƚĞƚŚĂŶLJŽƵŶŽƌŵĂůůLJĚŽ͕ďƵƚ
LJŽƵ͛ƌĞƵŶƐƵƌĞĂďŽƵƚƚŚĞĂŵŽƵŶƚŽĨƟŵĞŝƚǁŝůůƚĂŬĞƚŽŐĞƚƚŚĞƌĞ͘ZĂƚŚĞƌƚŚĂŶƚĂŬŝŶŐƚŚĞƌŝƐŬŽĨďĞŝŶŐ
ůĂƚĞƚŽĐůĂƐƐƚŚĞĮƌƐƚƟŵĞLJŽƵƚƌLJ͕LJŽƵĐŚŽŽƐĞƚŽƚĞƐƚLJŽƵƌƉŽƐƐŝďůĞŶĞǁƌŽƵƚĞŽŶĂ^ĂƚƵƌĚĂLJ͘zŽƵƉůĂŶϮϬ
ŵŝŶƵƚĞƐĨŽƌLJŽƵƌǁĂůŬ͕ĂŶĚůĞĂǀĞĂƚƚŚĞƐĂŵĞƟŵĞLJŽƵǁŽƵůĚŶŽƌŵĂůůLJůĞĂǀĞĨŽƌƐĐŚŽŽů͘

LJƚŚĞƟŵĞLJŽƵĂƌƌŝǀĞƚŽƐĐŚŽŽů͕LJŽƵƌĞĂůŝnjĞƚŚĂƚϯϱŵŝŶƵƚĞƐŚĂǀĞƉĂƐƐĞĚ͘zŽƵŶŽǁŬŶŽǁƚŚĂƚLJŽƵǁŝůů
ŶĞĞĚƚŽůĞĂǀĞϭϱŵŝŶƵƚĞƐĞĂƌůŝĞƌ͕ŽƌŐŽďĂĐŬƚŽLJŽƵƌŽůĚƌŽƵƚĞ͘ŝƚŚĞƌǁĂLJ͕LJŽƵŚĂǀĞŶ͛ƚůŽƐƚŵƵĐŚďĞĐĂƵƐĞ
LJŽƵĂƌĞŶŽƚůĂƚĞƚŽƐĐŚŽŽů͊

/ŶƚŚŝƐĞdžĂŵƉůĞ͕ƚŚĞŽƉƉŽƌƚƵŶŝƚLJŝƐĂŶĞǁƌŽƵƚĞƚŽƐĐŚŽŽů͘zŽƵĚĞĐŝĚĞĚƚŽdͲLJŽƵƚŽŽŬĂƐŵĂůů͕ƌĞůĂƟǀĞůLJ
ĞĂƐLJƐƚĞƉďLJƚƌLJŝŶŐŽƵƚLJŽƵƌŶĞǁƌŽƵƚĞŽŶĂ^ĂƚƵƌĚĂLJ͘zŽƵ>ZEƚŚĂƚŝƚƚĂŬĞƐLJŽƵůŽŶŐĞƌƚŽŐĞƚƚŽ
ƐĐŚŽŽůŽŶƚŚŝƐŶĞǁƌŽƵƚĞ͘EŽǁLJŽƵ͛ƌĞƌĞĂĚLJƚŽh/>͘͘͘ŶĞdžƚƟŵĞ͕LJŽƵ͛ůůĞŝƚŚĞƌŶĞĞĚƚŽůĞĂǀĞĞĂƌůŝĞƌƚŽ
ƚĂŬĞLJŽƵƌŶĞǁƌŽƵƚĞ͕ŽƌĐŽŶƟŶƵĞƚĂŬŝŶŐƚŚĞƌŽƵƚĞLJŽƵŶŽƌŵĂůůLJƚĂŬĞƚŽƐĐŚŽŽů͘

Act
You took a small, non-threatening step - saying ‘Hello’.

Learn
From his response, you now know he is a nice person.

Build
Finally, in the future, you’ll spend more &me with him.

Entrepreneurship of All Kinds | From Ideas to Action | 14

 >Ğƚ͛ƐůŽŽŬĂƚĂŶŽƚŚĞƌĞdžĂŵƉůĞ͗/ŵĂŐŝŶĞƚŚĂƚƚŚĞƌĞŝƐĂƐƚƵĚĞŶƚŝŶLJŽƵƌĐůĂƐƐǁŚŽŝƐĂůǁĂLJƐĂůŽŶĞ͕ĂŶĚ
ƚĞŶĚƐ ƚŽ ďĞ ǀĞƌLJ ƋƵŝĞƚ͘ /ƚ͛Ɛ ǀĞƌLJ ůŝŬĞůLJ ƚŚĂƚ ĞǀĞƌLJŽŶĞ ƚŚŝŶŬƐ ƚŚĂƚ ƚŚŝƐ ƐƚƵĚĞŶƚ ĚŽĞƐ ŶŽƚ ǁĂŶƚ ƚŽ ŵĂŬĞ
ĨƌŝĞŶĚƐ͘

ƐŬŝŶŐŚŝŵƚŽƉůĂLJƐŽĐĐĞƌǁŝƚŚLJŽƵĂŶĚLJŽƵƌĨƌŝĞŶĚƐƐĞĞŵƐůŝŬĞƚŽŽŵƵĐŚďĞĨŽƌĞLJŽƵŬŶŽǁŚŝŵ͕ďƵƚǁŚĂƚ
ŝĨLJŽƵĚĞĐŝĚĞĚƚŽƚĂŬĞĂƐŵĂůůƐƚĞƉĂŶĚũƵƐƚƐĂLJ͚ŚĞůůŽ͛ƚŽŚŝŵƚŽĚĂLJ͘tŚĞŶLJŽƵĚŽ͕ŚĞƌĞƐƉŽŶĚƐǀĞƌLJ
ŬŝŶĚůLJ͕ĂŶĚĂƐŬƐĂďŽƵƚLJŽƵƌĚĂLJ͘

'ŝǀĞŶŚŝƐƉŽƐŝƟǀĞƌĞƐƉŽŶƐĞĂŶĚĂƫƚƵĚĞ͕LJŽƵůĞĂƌŶƚŚĂƚŚĞ͛ƐĂǀĞƌLJŶŝĐĞƉĞƌƐŽŶ͘dŚĞŶĞdžƚƟŵĞLJŽƵƐĞĞ
Śŝŵ͕LJŽƵŵĂLJĂƐŬŚŝŵŝĨŚĞǁĂŶƚƐƚŽũŽŝŶLJŽƵĂƚƚŚĞůŽĐĂůŝŶƚĞƌŶĞƚĐĂĨĠĂŌĞƌƐĐŚŽŽů͘/ƚ͛ƐĂƐƐŝŵƉůĞĂƐƚŚĂƚ͊
tŚĂƚĚŝĚǁĞůĞĂƌŶŝŶƚŚŝƐĞdžĂŵƉůĞ͍zŽƵƌKWWKZdhE/dzŝƐƚŚĞƉŽƚĞŶƟĂůƚŽŵĂŬĞĂŶĞǁĨƌŝĞŶĚ͘zŽƵd
ďLJƚĂŬŝŶŐĂƐŵĂůů͕ŶŽŶƚŚƌĞĂƚĞŶŝŶŐƐƚĞƉͲƐĂLJŝŶŐ͚,ĞůůŽ͛͘&ƌŽŵŚŝƐƌĞƐƉŽŶƐĞ͕LJŽƵ>ZEƚŚĂƚŚĞŝƐĂŶŝĐĞ
ƉĞƌƐŽŶ͘&ŝŶĂůůLJ͕LJŽƵĚĞĐŝĚĞĚƚŽh/>͖ŝŶƚŚĞĨƵƚƵƌĞ͕LJŽƵ͛ůůƐƉĞŶĚŵŽƌĞƟŵĞǁŝƚŚŚŝŵ͘

Act
You took a small, rela!vely easy step by trying out your new
route on a Saturday.

Learn
It takes you longer to get to school on this new route.

Build
Next !me, you’ll either need to leave earlier to take your
new route, or con!nue to take the route you normally
take to school.

ƐLJŽƵĐĂŶƐĞĞ͕ƚŚĞĐƚͲ>ĞĂƌŶͲƵŝůĚŵŽĚĞůŝƐŶ͛ƚũƵƐƚĨŽƌďƵƐŝŶĞƐƐ͖ƚŚĞƌĞĂƌĞŵĂŶLJǁĂLJƐƚŚĂƚLJŽƵĐĂŶ
ĂƉƉůLJƚŚŝƐŵŽĚĞůƚŽLJŽƵƌĞǀĞƌLJĚĂLJůŝĨĞ͊

Lesson 14.2: WƌĂĐƟĐŝŶŐŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ

>ŝǀŝŶŐĞŶƚƌĞƉƌĞŶĞƵƌŝĂůůLJƌĞƋƵŝƌĞƐƉƌĂĐƟĐĞĂŶĚƌĞŇĞĐƟŽŶ͘zŽƵƌĨƵƚƵƌĞŝƐŵĂĚĞƵƉŽĨƚŚĞƌĞƐƵůƚƐŽĨŵĂŶLJ
ĚĞĐŝƐŝŽŶƐƚŚĂƚLJŽƵǁŝůůŵĂŬĞĂůŽŶŐƚŚĞǁĂLJ͘ƐLJŽƵŐŽƚŚƌŽƵŐŚLJŽƵƌůŝĨĞ͕ĐŽŶƐŝĚĞƌƚŚĞĨŽůůŽǁŝŶŐĞŝŐŚƚ
ƉƌĂĐƟĐĞƐĨŽƌůŝǀŝŶŐǁĞůůĂŶĚŵĂŬŝŶŐŐŽŽĚĚĞĐŝƐŝŽŶƐ͕ƚĂŬĞŶĨƌŽŵƚŚĞůĞƐƐŽŶƐŽĨ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ͘

Know yourself – your skills, passions and values.

/ŶƚŚĞ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶĐŚĂƉƚĞƌƐ͚<ŶŽǁŝŶDLJƐĞůĨ͟ĂŶĚ͞&ŝŶĚŝŶŐDLJWĂƐƐŝŽŶ͘͟LJŽƵŝĚĞŶƟĮĞĚLJŽƵƌ
ƐƚƌĞŶŐƚŚƐ͕ǀĂůƵĞƐĂŶĚƉĂƐƐŝŽŶƐ͕ĂůůŽĨǁŚŝĐŚŝŵƉĂĐƚŚŽǁLJŽƵƚŚŝŶŬĂŶĚƚŚĞǁĂLJLJŽƵŵĂŬĞĚĞĐŝƐŝŽŶƐ͘dŚĞ
ĨŽƵŶĚĂƟŽŶĨŽƌĂůůŽĨƚŚĞĚĞĐŝƐŝŽŶƐƚŚĂƚLJŽƵŵĂŬĞͲŝŶďƵƐŝŶĞƐƐĂŶĚŝŶůŝĨĞͲĂƌĞƌŽŽƚĞĚŝŶLJŽƵƌƉĂƐƐŝŽŶƐ
ĂŶĚĐŽƌĞǀĂůƵĞƐ͘͘͘ĂŶĚLJŽƵƌŐĞŶĞƌĂůƐĞůĨͲĂǁĂƌĞŶĞƐƐ͘

Know and Grow your Network.

DĞĞƟŶŐŶĞǁƉĞŽƉůĞŝƐƚŚĞƐŝŶŐůĞŐƌĞĂƚĞƐƚǁĂLJƚŽĮŶĚŶĞǁŽƉƉŽƌƚƵŶŝƟĞƐ͕ĂŶĚƐŽůǀĞƉƌŽďůĞŵƐĂƚŚŽŵĞ
ĂŶĚĂƚǁŽƌŬ͘

Know Your Audience - or Community!

ŶƚƌĞƉƌĞŶĞƵƌƐŵĂŬĞĚĞĐŝƐŝŽŶƐƚŚĂƚĂīĞĐƚƉĞŽƉůĞĞǀĞƌLJĚĂLJ͘dŚĞŵŽƌĞLJŽƵƵŶĚĞƌƐƚĂŶĚƚŚĞƉĞŽƉůĞǁŚŽ
ĂƌĞĂīĞĐƚĞĚďLJLJŽƵƌĚĞĐŝƐŝŽŶƐ͕ƚŚĞŵŽƌĞƐƵĐĐĞƐƐĨƵůLJŽƵǁŝůůďĞ͘<ŶŽǁŝŶŐǁŚĂƚŝƐŝŵƉŽƌƚĂŶƚƚŽƚŚĞŵ͕
ƚŚĞŝƌĐŚĂůůĞŶŐĞƐĂŶĚŚŽǁƚŚĞLJŐĞƚƚŚĞŝƌŝŶĨŽƌŵĂƟŽŶǁŝůůĐŽŶƚƌŝďƵƚĞƚŽLJŽƵƌƐƵĐĐĞƐƐ͘

>ŽŽŬĨŽƌŽŶŶĞĐƟŽŶƐ͘
dŚĞŵĞƚŚŽĚƐŽĨŵĂŬŝŶŐĐŽŶŶĞĐƟŽŶƐĚĞƐĐƌŝďĞĚŝŶƚŚĞ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶĐŚĂƉƚĞƌƐĂďŽƵƚLJŽƵƌ
ĐŽŵŵƵŶŝƚLJĂŶĚ/ĚĞĂ'ĞŶĞƌĂƟŽŶĐĂŶŚĞůƉLJŽƵƐĞĞƚŚĞǁĂLJLJŽƵͲLJŽƵƌƐŬŝůůƐ͕ŝŶƚĞƌĞƐƚƐ͕ĂŶĚǀĂůƵĞƐͲĮƚ
ŝŶƚŽĂŶLJƐĐĞŶĂƌŝŽ͘

Develop Processes and Good Teams.

īĞĐƟǀĞĚĞĐŝƐŝŽŶͲŵĂŬĞƌƐŵƵƐƚďĞĂďůĞƚŽƵŶĚĞƌƐƚĂŶĚĂŶĚĐƌĞĂƚĞƉƌŽĐĞƐƐĞƐ͕ĂŶĚŝĚĞŶƟĨLJĂŶĚĞŶŐĂŐĞ
ŽƚŚĞƌƉĞŽƉůĞ͛ƐƚĂůĞŶƚŝŶĂŶĞīĞĐƟǀĞǁĂLJ͘

14 | From Ideas to Action | Entrepreneurship of All Kinds

Create Systems to Measure your Progress
EŽŵĂƩĞƌǁŚĂƚLJŽƵĂƌĞƚƌĂĐŬŝŶŐͲŵŽŶĞLJ͕ŐƌĂĚĞƐ͕ŐŽĂůƐŽƌŽƚŚĞƌƚŚŝŶŐƐͲĚĞǀĞůŽƉŝŶŐĂƐLJƐƚĞŵĨŽƌ
ŵĞĂƐƵƌŝŶŐĂŶĚƌĞĐŽƌĚŝŶŐLJŽƵƌƉƌŽŐƌĞƐƐŝƐƚŚĞďĞƐƚǁĂLJĨŽƌLJŽƵƚŽŵĂŶĂŐĞŝŶĨŽƌŵĂƟŽŶͲǁŚŝĐŚLJŽƵĐĂŶ
ƚŚĞŶƵƐĞƚŽŵĂŬĞĚĞĐŝƐŝŽŶƐ͊

hƐĞLJŽƵƌZĞƐŽƵƌĐĞƐĸĐŝĞŶƚůLJ
ZĞĐŽŐŶŝnjŝŶŐƚŚĞƌĞƐŽƵƌĐĞƐLJŽƵŚĂǀĞĂŶĚŬŶŽǁŝŶŐŚŽǁLJŽƵĐĂŶƵƐĞƚŚŽƐĞƌĞƐŽƵƌĐĞƐƚŽƚĂŬĞĂĐƟŽŶŽŶ
LJŽƵƌŝĚĞĂƐŝƐŽŶĞŽĨƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚƐŬŝůůƐŽĨďĞŝŶŐĂŶĞŶƚƌĞƉƌĞŶĞƵƌ͘

ŽŵŵƵŶŝĐĂƚĞīĞĐƟǀĞůLJ
ZĞŐĂƌĚůĞƐƐŽĨƚŚĞƚĂƐŬ͕LJŽƵƌĂďŝůŝƚLJƚŽĐŽŵŵƵŶŝĐĂƚĞŝƐĞdžƚƌĞŵĞůLJŝŵƉŽƌƚĂŶƚ͘ĞŝŶŐĐůĞĂƌĂďŽƵƚLJŽƵĂŶĚ
LJŽƵƌŐŽĂůĐĂŶŚĞůƉLJŽƵĂŶĚŽƚŚĞƌƐƚŽĂĐĐŽŵƉůŝƐŚLJŽƵƌŽďũĞĐƟǀĞƐďĞƩĞƌ͘ZĞŵĞŵďĞƌLJŽƵƌZŽĐŬĞƚWŝƚĐŚ͊
KŶĞŽĨƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚĞǀĞƌLJĚĂLJĨƵŶĐƟŽŶƐŽĨĞŶƚƌĞƉƌĞŶĞƵƌƐŝƐƚŚĞĂďŝůŝƚLJƚŽĐŽŶƐŝĚĞƌĂůůŽĨƚŚĞ
ƐŬŝůůƐŵĞŶƟŽŶĞĚĂďŽǀĞ͕ĂŶĚƵƐĞƚŚĞŝŶĨŽƌŵĂƟŽŶŐĂƚŚĞƌĞĚƚŽŵĂŬĞŝŶĨŽƌŵĞĚĚĞĐŝƐŝŽŶƐͲǁŚĂƚǁĞĐĂůů
ƐƚƌĂƚĞŐŝĐĚĞĐŝƐŝŽŶŵĂŬŝŶŐ͘

Exercise 14.1: DLJ'ŽĂůƐĨŽƌWƌĂĐƟĐŝŶŐŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ

hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽŵĂŬĞŶŽƚĞƐĂďŽƵƚLJŽƵƌŐŽĂůƐĨŽƌĞĂĐŚŽĨƚŚĞĞŝŐŚƚƉƌŝŶĐŝƉůĞƐŽĨƉƌĂĐƟĐŝŶŐ
ĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ͘

<ŶŽǁzŽƵƌƐĞůĨʹLJŽƵƌ^ŬŝůůƐ͕WĂƐƐŝŽŶƐĂŶĚsĂůƵĞƐ͘

_______________________________________
_______________________________________
<ŶŽǁĂŶĚ'ƌŽǁLJŽƵƌEĞƚǁŽƌŬ͘

_______________________________________
_______________________________________
<ŶŽǁzŽƵƌƵĚŝĞŶĐĞͲŽƌŽŵŵƵŶŝƚLJ͊

_______________________________________
_______________________________________
>ŽŽŬĨŽƌŽŶŶĞĐƟŽŶƐ͘

_______________________________________
_______________________________________
ĞǀĞůŽƉWƌŽĐĞƐƐĞƐĂŶĚ'ŽŽĚdĞĂŵƐ͘

_______________________________________
_______________________________________
ƌĞĂƚĞ^LJƐƚĞŵƐƚŽDĞĂƐƵƌĞLJŽƵƌWƌŽŐƌĞƐƐ͘

_______________________________________
_______________________________________
hƐĞLJŽƵƌZĞƐŽƵƌĐĞƐĸĐŝĞŶƚůLJ͘

_______________________________________
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Entrepreneurship of All Kinds | From Ideas to Action | 14
 Lesson 14.3: Entrepreneurial Leadership
dŚĞƐŬŝůůƐƚŚĂƚǁĞ͛ǀĞƚĂůŬĞĚĂďŽƵƚŚĞƌĞĂƌĞŶŽƚũƵƐƚŝŵƉŽƌƚĂŶƚƚŽĞŶƚƌĞƉƌĞŶĞƵƌƐ͖ƚŚĞƐĞĐŽƌĞƐŬŝůůƐ
ĂƌĞŽŌĞŶƚŚĞƐĂŵĞƵƐĞĚƚŽĚĞƐĐƌŝďĞĂŐƌĞĂƚůĞĂĚĞƌ͘WĞŽƉůĞǁŚŽƵƐĞĂŶĚƉƌĂĐƟĐĞƚŚĞƐĞƐŬŝůůƐĂƌĞ
ŽŌĞŶĚĞƐĐƌŝďĞĚĂƐŝŶƐƉŝƌŝŶŐŽƚŚĞƌƐ͖ďĞŝŶŐƉĂƐƐŝŽŶĂƚĞ͖ĐŽŶĮĚĞŶƚ͖ĂŶĚƐŬŝůůĞĚĂƚǁŚĂƚƚŚĞLJĚŽ͘dŚŝƐ
ĐŽŵďŝŶĂƟŽŶŽĨĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĂŶĚůĞĂĚĞƌƐŚŝƉǁŝůůĞŶĂďůĞLJŽƵƚŽƚĂŬĞLJŽƵƌŝĚĞĂƐĨƵƌƚŚĞƌƚŚĂŶLJŽƵ
ĐŽƵůĚŝŵĂŐŝŶĞ͘zŽƵƌŝĚĞĂǁŝůůďĞĐŽŵĞŝŵƉŽƌƚĂŶƚ͕ŶŽƚŽŶůLJƚŽLJŽƵ͕ďƵƚƚŽŽƚŚĞƌƐĂƐǁĞůů͘

zŽƵƌŝĚĞĂĐŽƵůĚĐŚĂŶŐĞLJŽƵƌĐŽŵŵƵŶŝƚLJĂŶĚďĞLJŽŶĚ͊/ƚ͛ƐŝŵƉŽƌƚĂŶƚƚŽƌĞŵĞŵďĞƌƚŚĂƚĂƐĂŶ
ĞŶƚƌĞƉƌĞŶĞƵƌŝĂůůĞĂĚĞƌ͕LJŽƵƐŚŽƵůĚďĞĐŽŶƐŝƐƚĞŶƚŝŶLJŽƵƌǀĂůƵĞƐĂĐƌŽƐƐĂůůƚŚĂƚLJŽƵĚŽ͘ĞŚŽŶĞƐƚǁŝƚŚ
LJŽƵƌƐĞůĨĂďŽƵƚLJŽƵƌŐŽĂůƐĂŶĚŝŶƚĞŶƟŽŶƐ͖ďĞŽƉĞŶƚŽĐŚĂŶŐĞ͕ĂŶĚďĞƐƵƌĞƚŽĂůǁĂLJƐĞŵƉŽǁĞƌŽƚŚĞƌƐ
ƚŽĚŽƚŚĞƐĂŵĞ͘dŚĞƐĞƐŬŝůůƐͲĞŵƉŚĂƐŝnjĞĚƚŚƌŽƵŐŚŽƵƚƚŚŝƐǁŽƌŬŬͲĂƌĞƚŚĞĐŽƌĞŽĨĞŶƚƌĞƉƌĞŶĞƵƌŝĂů
ůĞĂĚĞƌƐŚŝƉ͘

ZĞŵĞŵďĞƌƚŚĂƚLJŽƵĂƌĞĂŶĞŶƚƌĞƉƌĞŶĞƵƌŝĂůůĞĂĚĞƌsZzz͘ŽŶƟŶƵĞƚŽƉƌĂĐƟĐĞŝƚ͕ďĞĐĂƵƐĞLJŽƵĐĂŶ
ĐŚĂŶŐĞƚŚĞǁŽƌůĚ͘

14 | From Ideas to Action | Entrepreneurship of All Kinds

 ZĞŇĞĐƟŽŶ͗ Entrepreneurial Leadership
zŽƵ͛ǀĞĐŽŵĞĂůŽŶŐǁĂLJ͊hƐĞƚŚĞƐƉĂĐĞďĞůŽǁƚŽƌĞŇĞĐƚŽŶLJŽƵƌũŽƵƌŶĞLJ&ƌŽŵ/ĚĞĂƐƚŽĐƟŽŶ͘
tŚĂƚĂĐƟŽŶƐǁŝůůLJŽƵƚĂŬĞŶŽǁ͍

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Entrepreneurship of All Kinds | From Ideas to Action | 14

>> My Business
Plan
(Annotated)
hƐĞƚŚŝƐŐƵŝĚĞĚƚĞŵƉůĂƚĞƚŽĐƌĞĂƚĞĂĚƌĂŌŽĨLJŽƵƌďƵƐŝŶĞƐƐ
ƉůĂŶĂƐLJŽƵǁŽƌŬƚŚƌŽƵŐŚƚŚĞĞdžĞƌĐŝƐĞƐŝŶƚŚĞŬ͘tŚĞŶ
LJŽƵĂƌĞĚŽŶĞ͕ŐŽƚŽƉƉĞŶĚŝdž//ĂŶĚǁƌŝƚĞƚŚĞĮŶĂůĚƌĂŌŽĨ
LJŽƵƌďƵƐŝŶĞƐƐƉůĂŶ͘

I
208 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ
EĂŵĞŽĨƵƐŝŶĞƐƐ͗___________________________________________

EĂŵĞŽĨŶƚƌĞƉƌĞŶĞƵƌ;ƐͿ͗ _____________________________________

ĂƚĞ͗ _____________________________________________________

dŚŝƐǁŝůůďĞLJŽƵƌĐŽǀĞƌƉĂŐĞ͘&ĞĞůĨƌĞĞƚŽĂĚĚĂƌƚǁŽƌŬƌĞůĞǀĂŶƚƚŽLJŽƵƌďƵƐŝŶĞƐƐŽƌĂůŽŐŽďƵƚďĞƐƵƌĞƚŽŝŶĐůƵĚĞƚŚĞŶĂŵĞŽĨƚŚĞďƵƐŝŶĞƐƐ͕ƚŚĞ
ŶĂŵĞ;ƐͿŽĨƚŚŽƐĞƐƚĂƌƟŶŐƚŚĞďƵƐŝŶĞƐƐ͕ĂŶĚƚŚĞĚĂƚĞ͘

DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 209

 Summary
dŚŝƐƐĞĐƟŽŶǁŝůůƐĞƌǀĞĂƐĂƐƵŵŵĂƌLJŽĨLJŽƵƌĞŶƟƌĞďƵƐŝŶĞƐƐƉůĂŶ͘/ƚǁŝůůůŝŬĞůLJďĞƚŚĞůĂƐƚƐĞĐƟŽŶŽĨLJŽƵƌƉůĂŶƚŚĂƚLJŽƵǁƌŝƚĞ͘

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210 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ

 Market Analysis
WŽƐŝƟŽŶŝŶŐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŚŽǁLJŽƵƌŝĚĞĂŝƐƵŶŝƋƵĞĂŶĚĂĚĚƐǀĂůƵĞƌĞůĂƟǀĞƚŽŽƚŚĞƌďƵƐŝŶĞƐƐĞƐǁŚŝĐŚŵĂLJĂůƌĞĂĚLJďĞŽƵƚƚŚĞƌĞĂĚĚƌĞƐƐŝŶŐƚŚĞǀĞƌLJ
ƐĂŵĞŝƐƐƵĞ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞĂƉŽƐŝƟŽŶŝŶŐŵĂƉ͘

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DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 211

^tKdŶĂůLJƐŝƐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶƚĞƌŶĂůƐƚƌĞŶŐƚŚĂŶĚǁĞĂŬŶĞƐƐĞƐĂƐǁĞůůĂƐĞdžƚĞƌŶĂůŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚƚŚƌĞĂƚƐŝŶƚŚĞŵĂƌŬĞƚƉůĂĐĞ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞŚŽǁ
LJŽƵǁŝůůĐĂƉŝƚĂůŝnjĞŽŶLJŽƵƌƐƚƌĞŶŐƚŚƐĂŶĚŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚŵŝŶŝŵŝnjĞLJŽƵƌǁĞĂŬŶĞƐƐĞƐĂŶĚƚŚƌĞĂƚƐ͘

Strengths Weaknesses
tŚĂƚĂƌĞLJŽƵƌƉƌŽĚƵĐƚ͛ƐƐƚƌĞŶŐƚŚƐ͍tŚĂƚŵĂŬĞƐLJŽƵƌƉƌŽĚƵĐƚ tŚĂƚŝƐƐŽŵĞƚŚŝŶŐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞĚŽĞƐŶŽƚĚŽǁĞůů͍
ĚŝīĞƌĞŶƚĨƌŽŵŽƚŚĞƌƐ͍

KƉƉŽƌƚƵŶŝƟĞƐ Threats
tŚĂƚĂƌĞƚŚĞŽƉƉŽƌƚƵŶŝƟĞƐŝŶƚŚĞŵĂƌŬĞƚƉůĂĐĞ͍tŚĂƚĐĂŶLJŽƵƚĂŬĞ tŚĂƚĂƌĞƚŚĞƚŚƌĞĂƚƐŝŶƚŚĞŵĂƌŬĞƚƉůĂĐĞ͍tŚĂƚǁŝůůŵĂŬĞŝƚĚŝĸĐƵůƚ
ĂĚǀĂŶƚĂŐĞŽĨƚŽŝŶƚƌŽĚƵĐĞLJŽƵƌďƵƐŝŶĞƐƐ͍ ƚŽŝŶƚƌŽĚƵĐĞLJŽƵƌƉƌŽĚƵĐƚ͍

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212 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ

 WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
DŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ
dŚŝƐ ƐĞĐƟŽŶ ĚĞƐĐƌŝďĞƐ LJŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ŝĚĞĂ ŝŶ ĂŶĚ ŝƚƐ ŝŵƉŽƌƚĂŶĐĞ ŝŶ Ă ƐŚŽƌƚ͕ ĐŽŶĐŝƐĞ͕ ĂŶĚ ƉŽǁĞƌĨƵů ǁĂLJ͘ Ğ ƐƵƌĞ ƚŽ ŝŶĐůƵĚĞ ŝŶ LJŽƵƌ
ĚĞƐĐƌŝƉƟŽŶLJŽƵƌŝĚĞĂ͕ƚŚĞŶĞĞĚLJŽƵĂƌĞŵĞĞƟŶŐ͕ĂŶĚƚŚĞƉĞŽƉůĞǁŚŽǁŝůůďĞŶĞĮƚĨƌŽŵLJŽƵƌŝĚĞĂ͘

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WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞĞƐĐƌŝƉƟŽŶ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƚŚĞǀĂůƵĞĂĚĚĞĚďLJLJŽƵƌŝĚĞĂĂŶĚŚŽǁLJŽƵĂƌĞƉŽƐŝƟŽŶŝŶŐ
LJŽƵƌƐĞůĨŝŶLJŽƵƌďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚ͘

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DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 213
 DĂƌŬĞƟŶŐĂŶĚ^ĂůĞƐ
WĞŽƉůĞ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶĚĞƚĂŝůƚŚĞƉĞŽƉůĞǁŚŽƐĞŶĞĞĚLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝƐŵĞĞƟŶŐ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞĚĞŵŽŐƌĂƉŚŝĐŝŶĨŽƌŵĂƟŽŶĂƐǁĞůůĂƐ
ŚŽǁƚŚĞLJƵƐĞƚŚĞƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘

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WƌŽŵŽƟŽŶ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌƉƌŽŵŽƟŽŶƐƚƌĂƚĞŐLJ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞŝŶĨŽƌŵĂƟŽŶĂďŽƵƚLJŽƵƌďƌĂŶĚŝĚĞŶƟƚLJĂƐǁĞůůĂƐŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƚŚĞĐŽƐƚƐ
ĂƐƐŽĐŝĂƚĞĚǁŝƚŚLJŽƵƌƉůĂŶƐ͘

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214 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ

WůĂĐĞ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐƚŚĞůŽĐĂƟŽŶĂƚǁŚŝĐŚLJŽƵǁŝůůƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘ĞƐƵƌĞƚŽĞdžƉůĂŝŶǁŚLJLJŽƵŚĂǀĞƉŝĐŬĞĚƚŚŝƐůŽĐĂƟŽŶĂƐŝƚƌĞůĂƚĞƐ
ƚŽǁŚĂƚLJŽƵŬŶŽǁĂďŽƵƚLJŽƵƌƚĂƌŐĞƚĐƵƐƚŽŵĞƌ͘

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Price
dŚŝƐƐĞĐƟŽŶŝĚĞŶƟĮĞƐƚŚĞƉƌŝĐĞĂƚǁŚŝĐŚLJŽƵǁŝůůƐĞůůLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘

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DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 215

 KƉĞƌĂƟŽŶƐ
WƌŽĚƵĐƚĂŶĚŝƐƚƌŝďƵƟŽŶ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐŝŶĚĞƚĂŝůŚŽǁLJŽƵǁŝůůŐĞƚLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞƚŽƚŚĞĐƵƐƚŽŵĞƌ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞĂĚƌĂǁŝŶŐŽĨLJŽƵƌƐƵƉƉůLJĐŚĂŝŶĂŶĚĂ
ĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚůŝŶŬŝŶLJŽƵƌĐŚĂŝŶĂƐǁĞůůĂƐǁŚĂƚŝŶƉƵƚƐLJŽƵǁŝůůŶĞĞĚĂŶĚĨƌŽŵǁŚŽŵLJŽƵǁŝůůŐĞƚƚŚĞŵ͘

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216 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ

Team
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐƚŚĞƚĞĂŵŵĞŵďĞƌƐǁŚŽǁŝůůďĞƌƵŶŶŝŶŐƚŚĞďƵƐŝŶĞƐƐ͘ĞƐƵƌĞƚŽŝŶĐůƵĚĞĂĚĞƐĐƌŝƉƟŽŶŽĨĞĂĐŚƚĞĂŵŵĞŵďĞƌ͛ƐƌŽůĞŝŶƚŚĞ
ďƵƐŝŶĞƐƐ͛ƐŽƉĞƌĂƟŽŶƐ͘

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ŽƌĞŽŵŵŝƚŵĞŶƚƐ
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐLJŽƵƌĐŽƌĞĐŽŵŵŝƚŵĞŶƚƐƚŽLJŽƵƌƐĞůĨ͕ƚŽĞĂĐŚŽƚŚĞƌ;ŝĨLJŽƵŚĂǀĞĂƚĞĂŵͿ͕ĂŶĚƚŽƚŚĞĐŽŵŵƵŶŝƚLJLJŽƵƌďƵƐŝŶĞƐƐƐĞƌǀĞƐ͘

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DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 217

 Financial Statements
ĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚ
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐLJŽƵƌƵƐĞŽĨĐĂƐŚĂŶĚƵůƟŵĂƚĞůLJƚŚĞĂŵŽƵŶĨŽĨĐĂƐŚƚŚĂƚLJŽƵŚĂǀĞĂǀĂŝůĂďůĞ͘

ĂƐŚ&ůŽǁͲKƉĞƌĂƟŽŶƐ
EĞƚ/ŶĐŽŵĞ
/ŶĐƌĞĂƐĞĐĐŽƵŶƚƐZĞĐĞŝǀĂďůĞ
/ŶĐƌĞĂƐĞĐĐŽƵŶƚƐWĂLJĂďůĞ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵKƉĞƌĂƟŽŶƐ

ĂƐŚ&ůŽǁͲ/ŶǀĞƐƟŶŐ
ĐƋƵŝƐŝƟŽŶŽĨŶĞǁĞƋƵŝƉŵĞŶƚ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵ/ŶǀĞƐƟŶŐ

ĂƐŚ&ůŽǁͲ&ŝŶĂŶĐŝŶŐ
ZĞƉĂLJŵĞŶƚŽĨ>ŽŶŐdĞƌŵĞďƚ
/ƐƐƵĞĚ^ƚŽĐŬ
WĂŝĚŝŶĂƉŝƚĂů
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵ&ŝŶĂŶĐŝŶŐ

Total Change in Cash

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218 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ

WƌŽ&ŽƌŵĂ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐĂŶĞƐƟŵĂƟŽŶŽĨŚŽǁƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐǁŝůůďĞŽǀĞƌƟŵĞ͘

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DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 219
^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚͲhƉŽƐƚƐ
dŚŝƐƐƚĂƚĞŵĞŶƚƐŚŽǁƐǁŚĂƚĞdžƉĞŶƐĞƐLJŽƵƌďƵƐŝŶĞƐƐǁŝůůŝŶĐƵƌďĞĨŽƌĞŽƉĞƌĂƟŽŶƐƐƚĂƌƚĂŶĚŚŽǁŵƵĐŚĐĂƐŚǁŝůůďĞŶĞĞĚĞĚƚŽĐŽǀĞƌƚŚĞƐĞ
ĞdžƉĞŶƐĞƐ͘

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220 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ

 Funding
dŚŝƐƐĞĐƟŽŶĚĞƐĐƌŝďĞƐǁŚĂƚƌĞƐŽƵƌĐĞƐLJŽƵŶĞĞĚƚŽƐƚĂƌƚLJŽƵƌďƵƐŝŶĞƐƐĂŶĚǁŚĞƌĞLJŽƵǁŝůůŐĞƚƚŚŽƐĞƌĞƐŽƵƌĐĞƐĨƌŽŵ͘

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DLJƵƐŝŶĞƐƐWůĂŶ;ŶŶŽƚĂƚĞĚͿ | Appendix | 221

>> My Business
Plan

II
224 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ
EĂŵĞŽĨƵƐŝŶĞƐƐ͗___________________________________________

EĂŵĞŽĨŶƚƌĞƉƌĞŶĞƵƌ;ƐͿ͗ _____________________________________

ĂƚĞ͗ _____________________________________________________

DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 225

 Summary
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226 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ

 Market Analysis
WŽƐŝƟŽŶŝŶŐ

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DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 227

^tKdŶĂůLJƐŝƐ

Strengths Weaknesses

KƉƉŽƌƚƵŶŝƟĞƐ Threats

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228 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ

 WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
DŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ
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WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞĞƐĐƌŝƉƟŽŶ
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DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 229
 DĂƌŬĞƟŶŐĂŶĚ^ĂůĞƐ
WĞŽƉůĞ
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WƌŽŵŽƟŽŶ
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230 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ

WůĂĐĞ
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Price
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DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 231

 KƉĞƌĂƟŽŶƐ
WƌŽĚƵĐƚĂŶĚŝƐƚƌŝďƵƟŽŶ

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232 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ
Team
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ŽƌĞŽŵŵŝƚŵĞŶƚƐ
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DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 233

 Financial Statements
ĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚ

ĂƐŚ&ůŽǁͲKƉĞƌĂƟŽŶƐ
EĞƚ/ŶĐŽŵĞ
/ŶĐƌĞĂƐĞĐĐŽƵŶƚƐZĞĐĞŝǀĂďůĞ
/ŶĐƌĞĂƐĞĐĐŽƵŶƚƐWĂLJĂďůĞ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵKƉĞƌĂƟŽŶƐ

ĂƐŚ&ůŽǁͲ/ŶǀĞƐƟŶŐ
ĐƋƵŝƐŝƟŽŶŽĨŶĞǁĞƋƵŝƉŵĞŶƚ
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵ/ŶǀĞƐƟŶŐ

ĂƐŚ&ůŽǁͲ&ŝŶĂŶĐŝŶŐ
ZĞƉĂLJŵĞŶƚŽĨ>ŽŶŐdĞƌŵĞďƚ
/ƐƐƵĞĚ^ƚŽĐŬ
WĂŝĚŝŶĂƉŝƚĂů
dŽƚĂůĂƐŚ&ůŽǁĨƌŽŵ&ŝŶĂŶĐŝŶŐ

Total Change in Cash

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234 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ

WƌŽ&ŽƌŵĂ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ

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DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 235
^ĐŚĞĚƵůĞŽĨ^ƚĂƌƚͲhƉŽƐƚƐ

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236 | Appendix | DLJƵƐŝŶĞƐƐWůĂŶ
 Funding
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DLJƵƐŝŶĞƐƐWůĂŶ | Appendix | 237
>> My Notes

III
DLJEŽƚĞƐ | Appendix | 239
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240 | Appendix | DLJEŽƚĞƐ

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DLJEŽƚĞƐ | Appendix | 241

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242 | Appendix | DLJEŽƚĞƐ

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DLJEŽƚĞƐ | Appendix | 243

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244 | Appendix | DLJEŽƚĞƐ

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DLJEŽƚĞƐ | Appendix | 245

__________________________________________________________
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246 | Appendix | DLJEŽƚĞƐ

>> Glossary

IV
'ůŽƐƐĂƌLJ | Appendix | 247
 Assets:ƌĞƐŽƵƌĐĞƐLJŽƵƌďƵƐŝŶĞƐƐĐŽŶƚƌŽůƐĂŶĚŽǁŶƐƚŽĐƌĞĂƚĞǀĂůƵĞĨŽƌLJŽƵƌďƵƐŝŶĞƐƐ͘ƐƐĞƚƐĐĂŶ
ďĞ͞ƚĂŶŐŝďůĞ͟;ĐĂŶďĞƐĞĞŶ͕ƚŽƵĐŚĞĚ͕ĞƚĐͿŽƌ͞ŝŶƚĂŶŐŝďůĞ͟;ŶŽƚǀŝƐŝďůĞ͕ŶŽƚƚŽƵĐŚĂďůĞ͕ĞƚĐͿ͘
Balance:ƚŚĞŝŶƚĞƌƐĞĐƟŽŶďĞƚǁĞĞŶŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚĐŽŵŵŝƚŵĞŶƚƐ͘ůůŽǁƐŽŶĞƚŽďĞ
ƌĞƐƉŽŶƐŝďůĞLJĞƚŚĂǀĞƚŚĞŽƉƟŽŶƚŽƉĂƌƟĐŝƉĂƚĞŝŶŽƚŚĞƌĂĐƟǀŝƟĞƐ͕ĞǀĞŶƚƐ͕ŽƌŝĚĞĂƐ͘
Behavioral Style:ƚŚĞďĞŚĂǀŝŽƌƐLJŽƵŶĂƚƵƌĂůůLJĞdžŚŝďŝƚǁŚŝůĞŝŶŇƵĞŶĐŝŶŐŽƚŚĞƌƐ͘
Commitment:ĂĐƟǀŝƚLJŽƌƌĞƐƉŽŶƐŝďŝůŝƚLJLJŽƵĂƌĞƌĞƋƵŝƌĞĚƚŽƉƵƌƐƵĞ͘
Community Needs:ƐŽŵĞƚŚŝŶŐƚŚĂƚŝƐŶĞĐĞƐƐĂƌLJƚŽŝŵƉƌŽǀĞƚŚĞƋƵĂůŝƚLJŽĨůŝĨĞŝŶƚŚĞĐŽŵŵƵŶŝƚLJ͘
Community:ĂƐŽĐŝĂůŐƌŽƵƉŽĨĂŶLJƐŝnjĞǁŚŽƐĞŵĞŵďĞƌƐƌĞƐŝĚĞŝŶĂƐƉĞĐŝĮĐůŽĐĂůŝƚLJ͘

Complimentary products:ƉƌŽĚƵĐƚƐƚŚĂƚŝŵƉƌŽǀĞƚŚĞĞdžƉĞƌŝĞŶĐĞŽĨƚŚĞŽƚŚĞƌŽƌĂƌĞĐŽŵŵŽŶůLJ
ƐŽůĚŽƌďŽƵŐŚƚĂƐĂƉĂŝƌ͘dž͘WĞĂŶƵƚƵƩĞƌĂŶĚ:ĞůůLJ

Core Value:ĂƐŵĂůůƐĞƚŽĨŬĞLJĐŽŶĐĞƉƚƐĂŶĚŝĚĞĂůƐƚŚĂƚŐƵŝĚĞĂƉĞƌƐŽŶ͛ƐůŝĨĞĂŶĚŚĞůƉŚŝŵŽƌŚĞƌ
ƚŽŵĂŬĞŝŵƉŽƌƚĂŶƚĚĞĐŝƐŝŽŶƐ͘

Cost of Capital:ƚŚĞĐŽƐƚƚŽLJŽƵƌďƵƐŝŶĞƐƐŽĨŽďƚĂŝŶŝŶŐŵŽŶĞLJĂŶĚƌĞƐŽƵƌĐĞƐĨƌŽŵǀĂƌŝŽƵƐƐŽƵƌĐĞƐ
;ůŽĂŶƐ͕ŝŶǀĞƐƚŽƌƐ͕ĞƚĐͿ͘
ĸĐŝĞŶĐLJ͗hƐŝŶŐ'ŽŽĚƋƵĂůŝƚLJŵĂƚĞƌŝĂůƐ͕ƌĞĚƵĐŝŶŐĐŽƐƚƐ͕ƐƉĞĞĚŝŶŐƵƉƉƌŽĚƵĐƟŽŶƟŵĞ͕ƉƵƫŶŐ
ŶĞĞĚƐĮƌƐƚŽǀĞƌǁĂŶƚƐ͘
Entrepreneur:ĂƉĞƌƐŽŶƚŚĂƚƵƟůŝnjĞƐƉƌŽďůĞŵͲƐŽůǀŝŶŐƚĞĐŚŶŝƋƵĞƐƚŽƐĞĞŬŽƵƚŶĞǁŽƉƉŽƌƚƵŶŝƟĞƐ͘
Entrepreneurship:ĂǁĂLJŽĨƚŚŝŶŬŝŶŐĂŶĚĂĐƟŶŐƚŚĂƚĨŽĐƵƐĞƐŽŶŝĚĞŶƟĨLJŝŶŐŽƉƉŽƌƚƵŶŝƟĞƐ͕
ŝŶĨŽƌŵƐĂĐƟŽŶǁŝƚŚĂŶĂůLJƐŝƐ͕ĂŶĚŝƐĚƌŝǀĞŶďLJĂƉĂƐƐŝŽŶĂƚĞŝŶĚŝǀŝĚƵĂůŽƌƚĞĂŵ͘
ƋƵŝƚLJ͗ƚŚĞŽǁŶĞƌƐŚŝƉŝŶƚĞƌĞƐƚŝŶLJŽƵƌďƵƐŝŶĞƐƐ͘ƋƵŝƚLJĐĂŶĐŽŵĞĨƌŽŵŵŽŶĞLJLJŽƵŽƌŽƚŚĞƌƐ
ĐŽŶƚƌŝďƵƚĞƚŽƚŚĞďƵƐŝŶĞƐƐ͕ŽƌĨƌŽŵƉƌŽĮƚƐƚŚĂƚĂƌĞƌĞͲŝŶǀĞƐƚĞĚŝŶƚŽLJŽƵƌďƵƐŝŶĞƐƐ͘
Ethics:^ƚƵĚLJŽĨƌŝŐŚƚĂŶĚǁƌŽŶŐ͕ĂĐŽĚĞŽĨĞƚŚŝĐƐĚĞĮŶĞƐĂďƵƐŝŶĞƐƐ͛ƐƉƌŽĨĞƐƐŝŽŶĂůďĞŚĂǀŝŽƌ͘
džĞĐƵƟǀĞ^ƵŵŵĂƌLJ͗ĂŶŽǀĞƌǀŝĞǁŽĨƚŚĞŵĂŝŶƉŽŝŶƚƐŽĨĂďƵƐŝŶĞƐƐƉůĂŶŽƌƉƌŽƉŽƐĂů
Financial Statements:ƌĞƉŽƌƚƐƚŚĂƚƐŚŽǁLJŽƵƌďƵƐŝŶĞƐƐ͛ĮŶĂŶĐŝĂůŚĞĂůƚŚ͖ƚǁŽŽĨƚŚĞŵŽƐƚ
ĐŽŵŵŽŶĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƚŚĞĂůĂŶĐĞ^ŚĞĞƚĂŶĚƚŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͘dŚĞĂůĂŶĐĞ
^ŚĞĞƚƐŚŽǁƐƚŚĞĂƐƐĞƚƐ͕ůŝĂďŝůŝƟĞƐĂŶĚĞƋƵŝƚLJŽĨLJŽƵƌďƵƐŝŶĞƐƐŽŶĂƐƉĞĐŝĮĐĚĂƚĞ͘dŚĞ/ŶĐŽŵĞ
^ƚĂƚĞŵĞŶƚƐŚŽǁƐŚŽǁƉƌŽĮƚĂďůĞLJŽƵƌďƵƐŝŶĞƐƐǁĂƐŽǀĞƌĂƉĞƌŝŽĚŽĨƟŵĞ͘
Flexibility:ďĞŝŶŐĂďůĞƚŽĂĚũƵƐƚǁŚĂƚLJŽƵĂƌĞĚŽŝŶŐ͕ǁŚĞŶLJŽƵĚŽŝƚ͕ĂŶĚŚŽǁLJŽƵĚŽŝƚĂƐ
ƵŶĞdžƉĞĐƚĞĚǀĂƌŝĂďůĞƐĂƌŝƐĞ
Goals:ŝĚĞŶƟĨLJŝŶŐĂůůŽĨƚŚĞƚĂƐŬƐLJŽƵŶĞĞĚƚŽĚŽŝŶŽƌĚĞƌƚŽĂĐĐŽŵƉůŝƐŚƐŽŵĞƚŚŝŶŐ
Goals Timeline:ĂƚĞŶƚĂƟǀĞƐĐŚĞĚƵůĞŽĨǁŚĞŶƚŽĐŽŵƉůĞƚĞĐĞƌƚĂŝŶƚĂƐŬƐďLJŝŶŽƌĚĞƌƚŽĂĐĐŽŵƉůŝƐŚ
ƐŽŵĞƚŚŝŶŐ
/ĚĞĂƚĞ͗ĂƐLJƐƚĞŵĨŽƌŐĞŶĞƌĂƟŶŐĂŶĚĐƌĞĂƟŶŐŶĞǁŝĚĞĂƐ͘
/ŶƉƵƚƐ͗dŚĞƌĂǁŵĂƚĞƌŝĂůƐŶĞĞĚĞĚƚŽŵĂŬĞLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ;ĞdžĂŵƉůĞ͗ĂŶŝŶƉƵƚŽĨĂĚƌĞƐƐ
ƐŚŽƉŝƐĨĂďƌŝĐͿ͘
/ŶƚĞƌĞƐƚ͗ƚŚĞĐŽƐƚŽĨďŽƌƌŽǁŝŶŐŵŽŶĞLJ͕ƵƐƵĂůůLJĐĂůĐƵůĂƚĞĚĂƐĂƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞƉƌŝŶĐŝƉĂů͘
/ŶǀĞƐƚŽƌ͗^ŽŵĞŽŶĞǁŚŽŽīĞƌƐŵŽŶĞLJ͕ĞƋƵŝƉŵĞŶƚ͕ĞdžƉĞƌƟƐĞ͕ĂŶĚͬŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐĨŽƌĂ
ƉƌŽĮƚĂďůĞƌĞƚƵƌŶ͘
/ŶǀĞƐƚŽƌƐ͗ƉĞŽƉůĞǁŚŽĐŽŶƚƌŝďƵƚĞŵŽŶĞLJŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐƚŽLJŽƵƌďƵƐŝŶĞƐƐ͘/ŶǀĞƐƚŽƌƐƵƐƵĂůůLJ
ĞdžƉĞĐƚƚŽŵĂŬĞĂƉƌŽĮƚĨƌŽŵƚŚĞŝƌŝŶǀĞƐƚŵĞŶƚĂŶĚŽŌĞŶůŽŽŬĨŽƌƚŚĞĂďŝůŝƚLJƚŽĂƐŬĨŽƌƚŚĞŝƌ
ŵŽŶĞLJďĂĐŬĂƚƐŽŵĞƉŽŝŶƚŝŶƟŵĞ͘
>ŝĂďŝůŝƟĞƐ͗ŵŽŶĞLJLJŽƵƌďƵƐŝŶĞƐƐŽǁĞƐƚŽƉĞŽƉůĞ͕ŽƌŐĂŶŝnjĂƟŽŶƐ͕ŽƌŽƚŚĞƌďƵƐŝŶĞƐƐĞƐ͘
DĂƌŬĞƟŶŐDŝdž͗ƚŚĞŵŝdžŝƐŵĂĚĞƵƉŽĨƚŚĞϱďĂƐŝĐĞůĞŵĞŶƚƐŬŶŽǁŶĂƐƚŚĞϱW͛Ɛ͗WƌŽĚƵĐƚ͕WƌŝĐĞ͕
WůĂĐĞ͕WƌŽŵŽƟŽŶĂŶĚWĞŽƉůĞ͘
Mission statement:ĐŽŶǀĞLJƐLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞŝĚĞĂĂŶĚŝƚƐŝŵƉŽƌƚĂŶĐĞŝŶĂƐŚŽƌƚ͕ĐŽŶĐŝƐĞ͕
ĂŶĚƉŽǁĞƌĨƵůǁĂLJ͘
Networking Tree:ĂĚŝĂŐƌĂŵƚŚĂƚĚŝƐƉůĂLJƐƚŚĞƌĞůĂƟŽŶƐŚŝƉƐŽĨƉĞŽƉůĞŝŶĐŽŶŶĞĐƟŽŶƚŽLJŽƵƌƐĞůĨ
Networking:hƟůŝnjŝŶŐƚŚĞƉĞŽƉůĞĂŶĚƉůĂĐĞƐĂƌŽƵŶĚLJŽƵƚŽŵĂƌŬĞƚLJŽƵƌďƵƐŝŶĞƐƐ͘
Obstacle:ŶƵŶĞdžƉĞĐƚĞĚǀĂƌŝĂďůĞƚŚĂƚƉƌĞǀĞŶƚƐLJŽƵĨƌŽŵƌĞĂĐŚŝŶŐĂŐŽĂů͘

248 | Appendix | 'ůŽƐƐĂƌLJ

Opportunity:ĂŐŽŽĚƉŽƐŝƟŽŶ͕ĐŚĂŶĐĞ͕ŽƌƉƌŽƐƉĞĐƚ͕ĂƐĨŽƌĂĚǀĂŶĐĞŵĞŶƚŽƌƐƵĐĐĞƐƐ͖͘ĂŶŝĚĞĂ͕
ĂĐƟǀŝƚLJ͕ŽƌĞǀĞŶƚLJŽƵĐĂŶĐŚŽŽƐĞƚŽƉƵƌƐƵĞ͘
Outputs:dŚĞĮŶŝƐŚĞĚƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞLJŽƵǁŝůůďĞƐĞůůŝŶŐƚŽLJŽƵƌĐƵƐƚŽŵĞƌ͘
Partnership:ƚǁŽŽƌŵŽƌĞƉĞŽƉůĞǁŚŽĐŽŵĞƚŽŐĞƚŚĞƌ͕ƉŽŽůŝŶŐƚŚĞŝƌŵŽŶĞLJ͕ŬŶŽǁůĞĚŐĞ͕ƟŵĞ͕
ĂŶĚŽƚŚĞƌƌĞƐŽƵƌĐĞƐƚŽƐƚĂƌƚĂŶĚŽƉĞƌĂƚĞĂďƵƐŝŶĞƐƐ͘
Passion:ǁŚĂƚĚƌŝǀĞƐ͕ŵŽƟǀĂƚĞƐ͕ĂŶĚĚĞĮŶĞƐǁŚĂƚLJŽƵĚŽ͘

Personal Mission Statement:ĂƐŵĂůůƐĞƚŽĨŬĞLJĐŽŶĐĞƉƚƐĂŶĚŝĚĞĂůƐƚŚĂƚŐƵŝĚĞĂƉĞƌƐŽŶ͛ƐůŝĨĞĂŶĚ

ŚĞůƉŚŝŵŽƌŚĞƌƚŽŵĂŬĞŝŵƉŽƌƚĂŶƚĚĞĐŝƐŝŽŶƐ͘
Personal Pitch:ŚŽǁLJŽƵĐĂŶĐŽŶĐŝƐĞůLJĞdžƉůĂŝŶǁŚŽLJŽƵĂƌĞĂŶĚǁŚĂƚLJŽƵǀĂůƵĞƚŽƐŽŵĞŽŶĞĞůƐĞ
WŽƐŝƟŽŶŝŶŐ͗dŚĞƉƌŽĐĞƐƐŽĨƐĞƫŶŐĂƐƉĞĐŝĮĐƉĞƌĐĞƉƟŽŶŽĨLJŽƵƌƉƌŽĚƵĐƚŝŶLJŽƵƌĐƵƐƚŽŵĞƌ͛ƐŵŝŶĚ
ƐĞƚ;ƚŚŝŶŬĂďŽƵƚƚŚĞƋƵĂůŝƚLJ͕ƉƌŝĐĞ͕ƐĞƌǀŝĐĞ͕ĂŶĚŽƚŚĞƌƐƚƌĞŶŐƚŚƐŽĨLJŽƵƌďƵƐŝŶĞƐƐŽƌƉƌŽĚƵĐƚͿ͘
Principal:ƚŚĞĂŵŽƵŶƚŽĨůŽĂŶŵŽŶĞLJďŽƌƌŽǁĞĚ͘
ZĂǁ/ĚĞĂƐ͗ŝĚĞĂƐƚŚĂƚĂƌĞƐƟůůŝŶƚŚĞƉƌŽĐĞƐƐŽĨďĞĐŽŵŝŶŐĐŽŵƉůĞƚĞ͘
ZĞĂĐŚĂŶĚ&ƌĞƋƵĞŶĐLJ͗ZĞĂĐŚŝƐƚŚĞŶƵŵďĞƌŽĨƉĞŽƉůĞLJŽƵƚŽƵĐŚǁŝƚŚLJŽƵƌŵĂƌŬĞƟŶŐŵĞƐƐĂŐĞ
ŽƌƚŚĞŶƵŵďĞƌŽĨƉĞŽƉůĞƚŚĂƚĂƌĞĞdžƉŽƐĞĚƚŽLJŽƵƌŵĞƐƐĂŐĞ͘&ƌĞƋƵĞŶĐLJŝƐƚŚĞŶƵŵďĞƌŽĨƟŵĞƐ
LJŽƵƚŽƵĐŚĞĂĐŚƉĞƌƐŽŶǁŝƚŚLJŽƵƌŵĞƐƐĂŐĞ͘ZĞŵĞŵďĞƌƚŚŝƐƌƵůĞǁŚĞŶĐŽŶƐŝĚĞƌŝŶŐLJŽƵƌƌĞĂĐŚǀƐ͘
ĨƌĞƋƵĞŶĐLJŽƉƟŽŶƐ͗ZĞĂĐŚǁŝƚŚŽƵƚ&ƌĞƋƵĞŶĐLJсtĂƐƚĞĚZĞƐŽƵƌĐĞƐ͘/ƚŵĂLJďĞŵŽƌĞĞīĞĐƟǀĞƚŽ
ƚŽƵĐŚĂƐŵĂůůŶƵŵďĞƌŽĨƉĞŽƉůĞŵĂŶLJƟŵĞƐƚŚĂŶƚŽƚŽƵĐŚĂůĂƌŐĞŶƵŵďĞƌŽĨƉĞŽƉůĞŽŶůLJŽŶĐĞ͘
ZĞŇĞĐƚ͗ƚŽƚŚŝŶŬĐĂƌĞĨƵůůLJĂďŽƵƚƉĂƐƚĞdžƉĞƌŝĞŶĐĞƐ͕ƉĞƌƐŽŶĂůŬŶŽǁůĞĚŐĞĂŶĚĐŽŶƐŝĚĞƌǁŚĂƚŚĂƐ
ďĞĞŶůĞĂƌŶĞĚ͘
Rocket Pitch:ƐƵĐĐŝŶĐƚƉƌĞƐĞŶƚĂƟŽŶŽĨĂďƵƐŝŶĞƐƐŝĚĞĂƵƐĞĚƚŽĂƩƌĂĐƚŝŶǀĞƐƚŽƌƐ͕ĂĚǀŝƐŽƌƐ͕
ƉĂƌƚŶĞƌƐ͕ĂŶĚŽƚŚĞƌĐŽůůĂďŽƌĂƚŽƌƐ͘
Self-Awareness:ďĞŝŶŐĂďůĞƚŽƵŶĚĞƌƐƚĂŶĚĂŶĚƐĞůĨͲƌĞŐƵůĂƚĞLJŽƵƌĞŵŽƟŽŶƐĂƐƚŚĞLJŽĐĐƵƌ͘
Social Responsibility:/ĚĞĂƚŚĂƚĂďƵƐŝŶĞƐƐŚĂƐĂĚƵƚLJƚŽĐŽŵŵƵŶŝƚLJŵĞŵďĞƌƐ͕ŶŽƚũƵƐƚƚŚĞ
ďƵƐŝŶĞƐƐ͘
Suppliers:sĞŶĚŽƌƐLJŽƵƉƵƌĐŚĂƐĞLJŽƵƌŝŶƉƵƚƐĨƌŽŵ͘
Supply Chain:ĂĐŚĂŶŶĞůŽĨĚŝƐƚƌŝďƵƟŽŶďĞŐŝŶŶŝŶŐǁŝƚŚƚŚĞƐƵƉƉůŝĞƌŽĨŵĂƚĞƌŝĂůƐŽƌĐŽŵƉŽŶĞŶƚƐ͕
ĞdžƚĞŶĚŝŶŐƚŚƌŽƵŐŚĂŵĂŶƵĨĂĐƚƵƌŝŶŐƉƌŽĐĞƐƐƚŽƚŚĞĚŝƐƚƌŝďƵƚŽƌĂŶĚƌĞƚĂŝůĞƌ͕ĂŶĚƵůƟŵĂƚĞůLJƚŽƚŚĞ
ĐŽŶƐƵŵĞƌ͘
Supply Chain Management:dŚĞŵĂŶĂŐĞŵĞŶƚĂŶĚĐŽŽƌĚŝŶĂƟŽŶŽĨĂƉƌŽĚƵĐƚ͛ƐƐƵƉƉůLJĐŚĂŝŶĨŽƌ
ƚŚĞƉƵƌƉŽƐĞŽĨŝŶĐƌĞĂƐŝŶŐĞĸĐŝĞŶĐLJĂŶĚƉƌŽĮƚĂďŝůŝƚLJ͘
T-account:ĂƚŽŽůƚŚĂƚ͕ǁŚĞŶĚƌĂǁŶ͕ůŽŽŬƐůŝŬĞĂ͞d͟ĂŶĚŝƐƵƐĞĚƚŽŚĞůƉƐĞƉĂƌĂƚĞĂŶĚŬĞĞƉƚƌĂĐŬ
ŽĨLJŽƵƌĂĐĐŽƵŶƟŶŐƚƌĂŶƐĂĐƟŽŶƐ͘ĂĐŚdͲĂĐĐŽƵŶƚŚĂƐĂŶĂĐĐŽƵŶƚƟƚůĞ͕ƚǁŽƐŝĚĞƐ;нĂŶĚͲͿ͕ĂŶĚ
ĂŵŽƵŶƚƐĨŽƌĂŶLJƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚŝŶĐƌĞĂƐĞŽƌĚĞĐƌĞĂƐĞƚŚĂƚĂĐĐŽƵŶƚ͘
Target Market:ƚŚĞƉŽƉƵůĂƟŽŶŽƌŐƌŽƵƉŽĨƉĞŽƉůĞǁŚŽǁĂŶƚƐƚŽďƵLJLJŽƵƌƉƌŽĚƵĐƚŽƌƐĞƌǀŝĐĞ͘
dŚĞƐĞĂƌĞƚŚĞƉĞŽƉůĞLJŽƵǁŝůůĚŝƌĞĐƚLJŽƵƌŵĂƌŬĞƟŶŐŵĞƐƐĂŐĞƐƚŽ͘
dƌĂŶƐĂĐƟŽŶ͗ďƵLJŝŶŐ͕ƐĞůůŝŶŐ͕ŽƌƚƌĂĚŝŶŐƐŽŵĞƚŚŝŶŐĨŽƌŐŽŽĚƐ͕ƐĞƌǀŝĐĞƐ͕ŽƌŽƚŚĞƌƌĞƐŽƵƌĐĞƐŝŶĂ
ďƵƐŝŶĞƐƐĚĞĂů͘dƌĂŶƐĂĐƟŽŶƐŽŌĞŶĚĞĂůǁŝƚŚŵŽŶĞLJŇŽǁŝŶŐŝŶƚŽĂŶĚŽƵƚŽĨLJŽƵƌďƵƐŝŶĞƐƐ͘
Visual Aid:ƚŽŽůƵƐĞĚƚŽďĞƩĞƌĞdžƉůĂŝŶĂĐŽŶĐĞƉƚ͕ĐŽŵŵƵŶŝĐĂƚĞŬĞLJŝŶĨŽƌŵĂƟŽŶ͕ŽƌĞŶŐĂŐĞĂŶ
ĂƵĚŝĞŶĐĞ͘

'ůŽƐƐĂƌLJ | Appendix | 249

250 | Appendix | 'ůŽƐƐĂƌLJ
>> Bibliography
& References

V
 Content:

1 WĂƉĂŶĞŬ͕sŝĐƚŽƌ͘ĞƐŝŐŶĨŽƌƚŚĞZĞĂůtŽƌůĚ͗,ƵŵĂŶĐŽůŽŐLJĂŶĚ^ŽĐŝĂůŚĂŶŐĞ͘ϮŶĚĚŝƟŽŶ͘ĐĂĚĞŵLJ

ŚŝĐĂŐŽWƵďůŝƐŚĞƌƐ͕ϭϵϴϱ͘ŽŽŬ͘

Ϯ>ŝŶĚĞƌ͕ĞŶ͘KůŝŶhƐĞƌKƌŝĞŶƚĞĚĞŶƚĞƌĞĚĞƐŝŐŶ/ĚĞĂƚĞWŚĂƐĞ/ŶƚƌŽ͘KůŝŶŽůůĞŐĞŽĨŶŐŝŶĞĞƌŝŶŐ͘ϭϬϬϬ

KůŝŶtĂLJ͕EĞĞĚŚĂŵ͕D͘ϭϳ&ĞďƌƵĂƌLJϮϬϭϭ͘>ĞĐƚƵƌĞ͘

3 DŽŽƌĞ͕'ĞŽīƌĞLJ͘ƌŽƐƐŝŶŐƚŚĞŚĂƐŵ͘EĞǁzŽƌŬ͗,ĂƌƉĞƌŽůůŝŶƐ͕ϭϵϵϭ͘ŽŽŬ͘

Graphics:

:ĂĐŬŝĞƐĞŬ͕'ůĂĚLJƐƌĞŶŶĞƌ͕DĂƌŐĂƌĞƚ&ĂLJĞ͕,ĞĂůƚŚĞƌDĞƌƌŝĮĞůĚ͕<ĂƚĞ<ĞĂƟŶŐ͕tĞŶĚLJKůŵƐƚĞĂĚ͕dŽĚĚ
WŝĞƌĐĞ͕ :ĂŵŝĞ ŽǁŐŝůů͕ :ŝŵ ŽůĞŬ͘  ͞DĞŶƚĂů ,ĞĂůƚŚ͘͟  ŚƩƉ͗ͬͬƚŚĞŶŽƵŶƉƌŽũĞĐƚ͘ĐŽŵͬŶŽƵŶͬŵĞŶƚĂůͲ
ŚĞĂůƚŚͬ͘WƵďůŝĐŽŵĂŝŶ͘

dŚĞEŽƵŶWƌŽũĞĐƚ͘͞ĂůĐƵůĂƚŽƌ͘͟ŚƩƉ͗ͬͬƚŚĞŶŽƵŶƉƌŽũĞĐƚ͘ĐŽŵͬŶŽƵŶͬĐĂůĐƵůĂƚŽƌͬ͘ƩƌŝďƵƟŽŶ͘

dŚĞEŽƵŶWƌŽũĞĐƚ͘͞ŽŵŵƵŶŝƚLJ͘͟ŚƩƉ͗ͬͬƚŚĞŶŽƵŶƉƌŽũĞĐƚ͘ĐŽŵͬŶŽƵŶͬĐĂůĐƵůĂƚŽƌͬ͘ƩƌŝďƵƟŽŶ͘

252 | Appendix | ŝďůŝŽŐƌĂƉŚLJΘZĞĨĞƌĞŶĐĞƐ

>> Sample
Business Plan
dŚŝƐƐĂŵƉůĞďƵƐŝŶĞƐƐƉůĂŶǁĂƐĂĚĂƉƚĞĚĨƌŽŵĂƌĞĂůƐƵďŵŝƐƐŝŽŶƚŽ
ƚŚĞŶƚƌĞƉƌĞŶĞƵƌŝĂů>ĞĂĚĞƌƐŚŝƉĐĂĚĞŵLJ͘

VI
254 | Appendix | ^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ
^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ | Appendix | 255
 Summary
ŌĞƌĂĐƌŝƟĐĂůůŽŽŬĂƚƵŶŵĞƚŶĞĞĚƐŽƵƌĐŽŵŵƵŶŝƚLJǁĞƐĂǁƚŚĂƚŵŽƐƚŚŽƵƐĞŚŽůĚƐĂŶĚďƵƐŝŶĞƐƐĞƐĮŶĚŝƚĚŝĸĐƵůƚƚŽŐĞƚƌŝĚŽĨƚŚĞŝƌ
ĂĐĐƵŵƵůĂƚĞĚƚƌĂƐŚƉƌŽƉĞƌůLJďĞĐĂƵƐĞĐƵƌƌĞŶƚǁĂƐƚĞŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐĚŽŶŽƚĨƌĞƋƵĞŶƚůLJĂƩĞŶĚƚŽŽƵƌŶĞŝŐŚďŽƌŚŽŽĚƐ͘dŚŝƐ
ĂĐĐƵŵƵůĂƚĞĚƚƌĂƐŚƉŽƐĞƐĂƚŚƌĞĂƚƚŽƚŚĞŚĞĂůƚŚŽĨƌĞƐŝĚĞŶƚƐĂŶĚƚŚĞĐŽŵŵƵŶŝƚLJĂƚůĂƌŐĞĂŶĚĚŽĞƐŶ͛ƚƚĂŬĞĂĚǀĂŶƚĂŐĞŽĨǁĂLJƐƚŽ
ƌĞĚƵĐĞƚŚĞĂŵŽƵŶƚŽĨƚƌĂƐŚĚŝƐƉŽƐĂůƚŚƌŽƵŐŚƌĞĐLJĐůŝŶŐĂŶĚĐŽŵƉŽƐƟŶŐ͘,ĞŶĐĞ͕ǁĞƐĂǁƚŚĞŽƉƉŽƌƚƵŶŝƚLJŽĨƐƚĂƌƟŶŐDĞƚƌŽƉŽůŝƐ
dƌĂƐŚDĂŶĂŐĞŵĞŶƚĨŽƌĐŽůůĞĐƟŶŐĂŶĚĞīĞĐƟǀĞůLJĚŝƐƉŽƐŝŶŐŽĨǁĂƐƚĞďŽƚŚƚŽŚĞůƉŽƵƌŶĞŝŐŚďŽƌƐĂŶĚŚĞůƉƉƌŽƚĞĐƚŽƵƌĞĂƌƚŚ͘

DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŝůůĐŽůůĞĐƚƌƵďďŝƐŚĨƌŽŵŚŽŵĞƐĂŶĚĮƌŵƐǁŚŝĐŚĮŶĚŝƚĚŝĸĐƵůƚƚŽĚŝƐƉŽƐĞŽĨƚƌĂƐŚƉƌŽƉĞƌůLJ͘dŚĞ
ƌƵďďŝƐŚǁŝůůďĞƐŽƌƚĞĚĂŶĚĐůĞĂŶĞĚƚŚĞƌĞĐLJĐůĂďůĞŵĂƚĞƌŝĂůƐĨƌŽŵƚŚĞŶŽŶƌĞĐLJĐůĂďůĞƚƌĂƐŚĂŶĚŽƌŐĂŶŝĐŵĂƚĞƌŝĂůƐ͘dŚĞĐůĞĂŶĞĚ
ƌĞĐLJĐůĂďůĞƚƌĂƐŚǁŝůůďĞƐŽůĚƚŽĂƌĞĐLJĐůŝŶŐĨĂĐƚŽƌLJŝŶŽƵƌĐŽŵŵƵŶŝƚLJ͕ŝƚǁŝůůďĞƚƌĂŶƐƉŽƌƚĞĚƚŽƚŚĂƚĨĂĐƚŽƌLJƵƐŝŶŐƚŚĞďŝĐLJĐůĞƐ͘dŚĞ
ŶŽŶƌĞĐLJĐůĂďůĞƚƌĂƐŚǁŝůůďĞĚƵŵƉĞĚĂƚĂŐŽǀĞƌŶŵĞŶƚƌĞĨƵƐĞĚƵŵƉŝŶŽƵƌůŽĐĂůŝƚLJ͘dŚĞŽƌŐĂŶŝĐƚƌĂƐŚǁŝůůďĞďƵƌŝĞĚĂƚĂĐŽŵƉŽƐƚ
ƐŝƚĞ͕ĨŽƌŶŽǁƚŚĞďĂĐŬLJĂƌĚŽĨĂĨŽƵŶĚĞƌ͛ƐŚŽŵĞ͕ĂŶĚƚŚĞĐŽŵƉŽƐƚǁŝůůůĂƚĞƌďĞƐŽůĚƚŽĂŐƌŝĐƵůƚƵƌĂůďƵƐŝŶĞƐƐĞƐĂƚĂŶĂīŽƌĚĂďůĞ
ƉƌŝĐĞ͘

Market Analysis
WŽƐŝƟŽŶŝŶŐ
dŚĞƌĞŝƐĂŶŽƚŚĞƌĐŽŵƉĂŶLJŝŶƚŚĞĐŽŵŵƵŶŝƚLJŽīĞƌŝŶŐƚƌĂƐŚŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐ͕ďƵƚƚŚĞLJĂƌĞƵŶĂďůĞƚŽŵĞĞƚƚŚĞĞŶƟƌĞŶĞĞĚŽĨ
ŽƵƌůĂƌŐĞĐŽŵŵƵŶŝƚLJ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞŝƌĨŽĐƵƐŝƐƉƌŝŵĂƌŝůLJŽŶďƵƐŝŶĞƐƐĞƐƌĂƚŚĞƌƚŚĂŶƌĞƐŝĚĞŶƟĂůĂƌĞƐĂŶĚƚŚĞŝƌƉŝĐŬͲƵƉƟŵĞƐĂƌĞ
ŝŶĨƌĞƋƵĞŶƚ͘

dŚĞDĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƚĞĂŵĨĞĞůƐƚŚĂƚƚŚĞŝƌďƵƐŝŶĞƐƐĂĚĚƐǀĂůƵĞƚŚƌŽƵŐŚƉƌŽǀŝĚŝŶŐĂĐŽŶƐŝƐƚĞŶƚĂŶĚĨƌĞƋƵĞŶƚƉŝĐŬͲƵƉ
ŽĨƚƌĂƐŚ͘^ŝŶĐĞƚŚĞLJŚĂǀĞĚĞĐŝĚĞĚƚŽƉŽƐŝƟŽŶƚŚĞŝƌďƵƐŝŶĞƐƐďĂƐĞĚŽŶƚŚĞĨƌĞƋƵĞŶĐLJŽĨƚƌĂƐŚƉŝĐŬƵƉ͕ƚŚĞŝƌƉŽƐŝƟŽŶŝŶŐƐƚĂƚĞŵĞŶƚŝƐ
͞DŽƐƚZĞůŝĂďůĞĂŶĚ&ƌĞƋƵĞŶƚdƌĂƐŚZĞŵŽǀĂů^ĞƌǀŝĐĞ͘͟

Very cheap ŽŵƉĞƟƚŽƌϭ

;DŽŶƚŚůLJƉŝĐŬƵƉ͕ǀĞƌLJ
ĐŚĞĂƉͿ

ŽŵƉĞƟƚŽƌϭ
;ŝǁĞĞŬůLJƉŝĐŬƵƉ͕ĐŚĞĂƉĞƌͿ

Frequent pick up Infrequent pick up

^ĂŵΘ'ƌĂĐĞ͛Ɛ&ƌŝĞŶĚƐ
;tĞĞŬůLJƉŝĐŬƵƉ͕ŵŽƌĞĞdžƉĞŶƐŝǀĞͿ

More expensive

256 | Appendix | ^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ

^ƚƌĞŶŐƚŚƐ͕tĞĂŬŶĞƐƐĞƐ͕KƉƉŽƌƚƵŶŝƟĞƐ͕ĂŶĚdŚƌĞĂƚƐ
Strengths Weaknesses
,ŝŐŚƋƵĂůŝƚLJĚŝƐƉŽƐĂůƉƌŽĐĞƐƐ͖ dƌĂŶƐƉŽƌƚĂƟŽŶĐŚĂůůĞŶŐĞƐ
džŝƐƟŶŐƌĞůĂƟŽŶƐŚŝƉǁŝƚŚŵĂŶĂŐĞƌĂƚƌĞĐLJĐůŝŶŐĨĂĐƚŽƌLJ

KƉƉŽƌƚƵŶŝƟĞƐ Threats
&ŽƵŶĚĞƌŚĂƐƐƉĂĐĞĨŽƌƐŽƌƟŶŐƉƌŽĐĞƐƐ͖ KǀĞƌǁŚĞůŵŝŶŐŶĞĞĚŝŶƚŚĞĐŽŵŵƵŶŝƚLJ͖
,ŝŐŚĚĞŵĂŶĚĨŽƌĂƌƚĂŶĚũĞǁĞůƌLJŵĂĚĞĨƌŽŵƌĞĐLJĐůĞĚ 'ŽǀĞƌŶŵĞŶƚŝŶĨƌĂƐƚƌƵĐƚƵƌĞŵĂLJƵůƟŵĂƚĞůLJŽǀĞƌƚĂŬĞƐĞƌǀŝĐĞƐ
ŵĂƚĞƌŝĂůƐ

WƌŽĚƵĐƚ^ĞƌǀŝĐĞ^ŽůƵƟŽŶ
DŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ
DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚƉƌŽǀŝĚĞƐƐŵĂůůďƵƐŝŶĞƐƐĞƐĂŶĚŚŽŵĞƐĂƌŽƵŶĚƚŚĞŝƌĐŽŵŵƵŶŝƚLJƚŚĞĂďŝůŝƚLJƚŽĂīŽƌĚĂďůLJůŝǀĞŝŶĂ
ŚĞĂůƚŚŝĞƌĞŶǀŝƌŽŶŵĞŶƚĂŶĚƚŽǁŽƌŬƚŽŐĞƚŚĞƌƚŽŵŝŶŝŵŝnjĞƚŚĞŝƌĐŽŵŵƵŶŝƚLJ͛ƐĞŶǀŝƌŽŶŵĞŶƚĂůĨŽŽƚƉƌŝŶƚƚŚƌŽƵŐŚƚŚĞĐŽƌƌĞĐƚĚŝƐƉŽƐĂů͕
ƌĞĐLJĐůŝŶŐ͕ĂŶĚĐŽŵƉŽƐƟŶŐŽĨǁĂƐƚĞŵĂƚĞƌŝĂůƐ͘

WƌŽĚƵĐƚŽƌ^ĞƌǀŝĐĞĞƐĐƌŝƉƟŽŶ
DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŝůůĐŽůůĞĐƚƌƵďďŝƐŚĨƌŽŵŚŽŵĞƐĂŶĚƐŵĂůůĮƌŵƐǁŚŝĐŚĮŶĚŝƚĚŝĸĐƵůƚƚŽĚŝƐƉŽƐĞŽĨƚƌĂƐŚƉƌŽƉĞƌůLJ͘
tĞǁŝůůĞŶůŝƐƚŚŽŵĞƐĂŶĚƐŵĂůůďƵƐŝŶĞƐƐĞƐƐƵĐŚĂƐŝŶƚĞƌŶĞƚĐĂĨĞƐ͕ƚĂŝůŽƌŝŶŐƐŚŽƉƐ͕ĂŶĚĨŽŽĚũŽŝŶƚƐƚŽŚŝƌĞŽƵƌƚƌĂƐŚŵĂŶĂŐĞŵĞŶƚ
ƐĞƌǀŝĐĞƐĨŽƌĂŵŽŶƚŚůLJĨĞĞ͘dŚĞDĞƚƌŽƉŽůŝƐƚĞĂŵǁŝůůƵƐĞƚǁŽŵŽĚŝĮĞĚďŝŬĞƐŝŶĂůůƚƌĂŶƐƉŽƌƟŶŐŽĨƚƌĂƐŚ͘dŚĞƚĞĂŵǁŝůůďŝŬĞƚŽ
ƚŚĞŚŽŵĞƐŽƌƐŵĂůůďƵƐŝŶĞƐƐĞƐŽĨƚŚĞŝƌĐůŝĞŶƚƐĂŶĚƉŝĐŬƵƉƚŚĞŝƌƚƌĂƐŚ͘dŚĞƚĞĂŵǁŝůůďƌŝŶŐƚŚĞƚƌĂƐŚďĂŐƐďĂĐŬƚŽƚŚĞŝƌƉůĂŶƚƐŝƚĞ
ǁŚĞƌĞŝƚǁŝůůďĞƉƌŽĐĞƐƐĞĚ͘dŚĞƚĞĂŵǁŝůůƚŚĞŶƐŽƌƚƚŚĞƚƌĂƐŚ͕ƌĞƉĂĐŬĂŐĞŝƚ͕ĂŶĚĞŝƚŚĞƌĚĞůŝǀĞƌŝƚƚŽĂĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJŽƌƐĞůůŝƚƚŽĂ
ƌĞĐLJĐůŝŶŐƉůĂŶƚ͘KƌŐĂŶŝĐŝƚĞŵƐǁŚŝĐŚĐĂŶďĞĐŽŵƉŽƐƚĞĚǁŝůůďĞĐŽůůĞĐƚĞĚŝŶĂƐŵĂůůƉůŽƚŽĨůĂŶĚŶĞĂƌƚŚĞƐŽƌƟŶŐƐŝƚĞ͘dŚŝƐĐŽŵƉŽƐƚ
ĐĂŶďĞƉƵƌĐŚĂƐĞĚďLJŶĞĂƌďLJĨĂƌŵĞƌƐ͘

dŚĞƌĞǁŝůůďĞĂŐƌŽǁŝŶŐĚĞŵĂŶĚĨŽƌŽƵƌƐĞƌǀŝĐĞƐďĞĐĂƵƐĞǁĞĂƌĞĨĂƐƚ͕ĞīĞĐƟǀĞĂŶĚƌĞůŝĂďůĞ͘/ŶĚŝǀŝĚƵĂůƐǁŝůůĂůǁĂLJƐŚĂǀĞƚƌĂƐŚ
ŝŶƚŚĞŝƌďŝŶƐƚŽďĞĐŽůůĞĐƚĞĚƐŽŽƵƌĐƵƐƚŽŵĞƌƐǁŝůůďĞĂŶdžŝŽƵƐƚŽĚŝƐƉŽƐĞŽĨƚŚĞŝƌƚƌĂƐŚƚŚƌŽƵŐŚŽƵƌƐĞƌǀŝĐĞƐ͘DĞƚƌŽƉŽůŝƐǁŝůůďĞ
ƐƵƐƚĂŝŶĂďůĞďĞĐĂƵƐĞƚŚĞƌĞŝƐĂĐŽŶƐƚĂŶƚƐƵƉƉůLJŽĨǁĂƐƚĞĨƌŽŵŚŽŵĞƐĂŶĚďƵƐŝŶĞƐƐĞƐ͘

DĂƌŬĞƟŶŐĂŶĚ^ĂůĞƐ
WĞŽƉůĞ
KƵƌƚĂƌŐĞƚŵĂƌŬĞƚŝƐŵĂĚĞƵƉŽĨƌĞƐŝĚĞŶƚƐŝŶƚŚĞĐŽŵŵƵŶŝƚLJĂƐǁĞůůĂƐƐŵĂůůďƵƐŝŶĞƐƐĞƐĂŶĚĮƌŵƐƐƵĐŚĂƐŝŶƚĞƌŶĞƚĐĂĨĞƐ͕ƚĂŝůŽƌŝŶŐ
ƐŚŽƉƐ͕ĂŶĚĨŽŽĚũŽŝŶƚƐ͘KƵƌĐƵƐƚŽŵĞƌƐǁŝůůŶĞĞĚŽƵƌƐĞƌǀŝĐĞƐďĞĐĂƵƐĞƚŚĞLJĐƵƌƌĞŶƚůLJĮŶĚŝƚĚŝĸĐƵůƚƚŽĚŝƐƉŽƐĞŽĨƚŚĞŝƌƚƌĂƐŚƉƌŽƉĞƌůLJ͘
ƐƉĞĐŝĂůůLJŝŶŽƵƌĐŽŵŵƵŶŝƚLJ͕ƚŚĞĐƵƌƌĞŶƚƐŽůƵƟŽŶŝƐŽǀĞƌǁŚĞůŵĞĚĂŶĚƵŶƌĞůŝĂďůĞ͘

WƌŽŵŽƟŽŶ
^ŝŶĐĞǁĞĂƌĞĂƐĞƌǀŝĐĞďƵƐŝŶĞƐƐ͕ǁĞƌĞĐŽŐŶŝnjĞƚŚĞŝŵƉŽƌƚĂŶĐĞŽĨĨŽĐƵƐŝŶŐŽƵƌƉƌŽŵŽƟŽŶĂƌŽƵŶĚďƵŝůĚŝŶŐƚƌƵƐƚĂŶĚƌĞůĂƟŽŶƐŚŝƉƐ
ǁŝƚŚŽƵƌĐƵƐƚŽŵĞƌƐ͘KƵƌĞĂƌůLJƉƌŽŵŽƟŽŶŵĞƚŚŽĚƐǁŝůůďĞůŽǁĐŽƐƚďĞĐĂƵƐĞǁĞǁŝůůƐŝŵƉůLJŐŽĚŽŽƌƚŽĚŽŽƌƚŽƐŚĂƌĞŝŶĨŽƌŵĂƟŽŶ
ĂďŽƵƚŽƵƌƐĞƌǀŝĐĞƐ͘KŶĐĞǁĞŚĂǀĞďĞŐƵŶŐĞŶĞƌĂƟŶŐƌĞǀĞŶƵĞ͕ǁĞǁŝůůŝŶǀĞƐƚŝŶƐƟĐŬĞƌƐĂŶĚƉŽƐƚĞƌƐƚŽŚĂŶŐĂƌŽƵŶĚŽƵƌĐŽŵŵƵŶŝƚLJ
ƚŽŐƌŽǁŽƵƌďƵƐŝŶĞƐƐŵŽƌĞ͘KƵƌďŝĐLJĐůĞƐǁŝůůďĞďƌŝŐŚƚůLJĚĞĐŽƌĂƚĞĚƚŽĐĂůůĂƩĞŶƟŽŶƚŽŽƵƌďƵƐŝŶĞƐƐ͘

^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ | Appendix | 257

Place
DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŝůůďĞŽƉĞƌĂƚĞĚŽƵƚŽĨƚŚĞŚŽŵĞŽĨŽŶĞŽĨŽƵƌĨŽƵŶĚĞƌƐ͘ĚĚŝƟŽŶĂůůLJ͕ƚŚĞďĂĐŬLJĂƌĚŽĨŽŶĞĨŽƵŶĚĞƌ
ǁŝůůƐĞƌǀĞĂƐŽƵƌƉůĂŶƚƐŝƚĞĂƚǁŚŝĐŚƚƌĂƐŚŝƐƉƌŽĐĞƐƐĞĚ͘dŚŝƐďĂĐŬLJĂƌĚǁŝůůĂůƐŽƐĞƌǀĞĂƐƚŚĞŽƌŝŐŝŶĂůĐŽŵƉŽƐƚƐŝƚĞĨŽƌŽƌŐĂŶŝĐŵĂƚĞƌŝĂůƐ
ĐŽůůĞĐƚĞĚ͘ƵƐƚŽŵĞƌƐǁŝůůŶŽƚĐŽŵĞƚŽŽƵƌƐŝƚĞ͕ƚŚĞLJǁŝůůƐĞĞŽƵƌďŝĐLJĐůĞƐŝŶƚŚĞĐŽŵŵƵŶŝƚLJǁŚŝĐŚǁŝůůƐƉƌĞĂĚŽƵƌŶĂŵĞĨƵƌƚŚĞƌ͘

Price
KƵƌƉƌŝĐĞƐĂƌĞĂīŽƌĚĂďůĞ͘ĂĐŚĐƵƐƚŽŵĞƌǁŝůůƉĂLJĂŵŽŶƚŚůLJĨĞĞĨŽƌƌĞŐƵůĂƌƉŝĐŬƵƉƐĞƌǀŝĐĞƐ͘dŚĞƌĞǁŝůůďĞŵƵůƟƉůĞƉƌŝĐŝŶŐƉĂĐŬĂŐĞƐ
ĚĞƉĞŶĚŝŶŐŽŶŚŽǁŽŌĞŶƚŚĞĐƵƐƚŽŵĞƌǁŽƵůĚůŝŬĞƚŚĞƉŝĐŬƵƉƐĞƌǀŝĐĞƐ͘

KƉĞƌĂƟŽŶƐ
WƌŽĚƵĐƟŽŶĂŶĚŝƐƚƌŝďƵƟŽŶ
DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŝůůĞŶůŝƐƚŚŽŵĞƐĂŶĚƐŵĂůůďƵƐŝŶĞƐƐĞƐƐƵĐŚĂƐŝŶƚĞƌŶĞƚĐĂĨĞƐ͕ƚĂŝůŽƌŝŶŐƐŚŽƉƐ͕ĂŶĚĨŽŽĚũŽŝŶƚƐƚŽŚŝƌĞ
ƚŚĞŝƌƚƌĂƐŚŵĂŶĂŐĞŵĞŶƚƐĞƌǀŝĐĞƐĨŽƌĂŵŽŶƚŚůLJĨĞĞ͘dŚĞDĞƚƌŽƉŽůŝƐƚĞĂŵǁŝůůƵƐĞƚǁŽŵŽĚŝĮĞĚďŝŬĞƐŝŶĂůůƚƌĂŶƐƉŽƌƟŶŐŽĨƚƌĂƐŚ͘dŚĞ
ƚĞĂŵǁŝůůďŝŬĞƚŽƚŚĞŚŽŵĞƐŽĨƚŚĞŝƌĐůŝĞŶƚƐ͕ƉŝĐŬƵƉƚŚĞŝƌƚƌĂƐŚ͕ĂŶĚƐƵƉƉůLJŶĞǁƚƌĂƐŚďĂŐƐ͘dŚĞƚĞĂŵǁŝůůďƌŝŶŐƚŚĞƚƌĂƐŚďĂŐƐďĂĐŬ
ƚŽƚŚĞŝƌƉůĂŶƚƐŝƚĞǁŚŝĐŚŝƐůŽĐĂƚĞĚŝŶƚŚĞďĂĐŬLJĂƌĚŽĨƚŚĞĨŽƵŶĚĞƌǁŚĞƌĞŝƚǁŝůůďĞƉƌŽĐĞƐƐĞĚ͘dŚĞƚĞĂŵǁŝůůƐŽƌƚƚŚĞƚƌĂƐŚ͕ƌĞƉĂĐŬĂŐĞ
ŝƚ͕ĂŶĚĞŝƚŚĞƌĚĞůŝǀĞƌŝƚƚŽĂĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJŽƌƐĞůůŝƚƚŽĂƌĞĐLJĐůŝŶŐƉůĂŶƚ͘KƌŐĂŶŝĐŝƚĞŵƐǁŚŝĐŚĐĂŶďĞĐŽŵƉŽƐƚĞĚǁŝůůďĞĐŽůůĞĐƚĞĚŝŶ
ĂƐŵĂůůƉůŽƚŽĨůĂŶĚŶĞĂƌƚŚĞƐŽƌƟŶŐƐŝƚĞ͘dŚŝƐĐŽŵƉŽƐƚĐĂŶďĞƉƵƌĐŚĂƐĞĚďLJŶĞĂƌďLJĨĂƌŵĞƌƐ͘

SELL RECYCABLES
to a recycling plant

COLLECT TRASH SORT TRASH DELIVER TRASH

from home of each at the sorting site to the disposal facility
customer

SELL COMPOST
to nearby
farmers

258 | Appendix | ^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ

Team
DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚŝƐĂũŽŝŶƚƉĂƌƚŶĞƌƐŚŝƉĨŽƵŶĚĞĚĂŶĚůĞĂĚďLJDĂƌLJĂŶĚ/ƐĂĂĐ͘ůůĚĞĐŝƐŝŽŶƐĂďŽƵƚƚŚĞďƵƐŝŶĞƐƐǁŝůůďĞ
ŵĂĚĞƚŽŐĞƚŚĞƌ͘

Mary
ŝƌĞĐƚŽƌŽĨKƉĞƌĂƟŽŶƐ

DĂƌLJůŽǀĞƐƚŽŐŽŽŶůŽŶŐďŝŬĞƌŝĚĞƐĂŶĚŬŶŽǁƐƚŚĞĐŽŵŵƵŶŝƚLJŶĞŝŐŚďŽƌŚŽŽĚƐǁĞůůƐŽƐŚĞǁŝůůŚĂŶĚůĞĂůůƚŚĞƚƌĂŶƐƉŽƌƚĂƟŽŶŽĨƚƌĂƐŚ͘
DĂƌLJǁŝůůďĞƚŚĞůĞĂĚĞƌŽĨďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐĂƐƐŚĞǁĞůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƉŝĐŬŝŶŐƵƉƚŚĞƚƌĂƐŚĨƌŽŵƚŚĞŝƌĐƵƐƚŽŵĞƌ͛ƐŚŽŵĞƐĂƐǁĞůů
ĂƐĚĞůŝǀĞƌŝŶŐƚŚĞƐŽƌƚĞĚƚƌĂƐŚĂŶĚƌĞĐLJĐůĂďůĞƐƚŽƚŚĞĐŽƌƌĞĐƚĚŝƐƉŽƐĂůĨĂĐŝůŝƟĞƐ͘/ƐĂĂĐĂŶĚDĂƌLJǁŝůůƐŚĂƌĞƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƐŽƌƟŶŐƚŚĞ
ƚƌĂƐŚ͘,ĞƌďĂĐŬLJĂƌĚǁŝůůƐĞƌǀĞĂƐƚŚĞƐŽƌƟŶŐƐŝƚĞĂŶĚĐŽŵƉŽƐƟŶŐƐŝƚĞ͘

/ƐĂĂĐ
ŝƌĞĐƚŽƌŽĨ^ĂůĞƐ͕DĂƌŬĞƟŶŐ͕ĂŶĚĐĐŽƵŶƟŶŐ

/ƐĂĂĐ ŝƐ ŐŽŽĚ Ăƚ ĚƌĂǁŝŶŐ ĂŶĚ ŵĂŬŝŶŐ ƐŝŐŶƐ ĂŶĚ ŇLJĞƌƐ͘ ,Ğ ŝƐ ĂůƐŽ ǀĞƌLJ ŐŽŽĚ Ăƚ ŝŶƚĞƌĂĐƟŶŐ ǁŝƚŚ ĐƵƐƚŽŵĞƌƐ ĨƌŽŵ ŐƌŽǁŝŶŐ ƵƉ ǁĂƚĐŚŝŶŐ
ŚŝƐŵŽƚŚĞƌƌƵŶĂǀĞƌLJƐƵĐĐĞƐƐĨƵůƚĂŝůŽƌŝŶŐƐŚŽƉ͘/ƐĂĂĐǁŝůůďĞƚŚĞůĞĂĚĞƌŽĨŵĂƌŬĞƟŶŐĂŶĚƐĂůĞƐĂƐŚĞǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĐƌĞĂƟŶŐ
ƉƌŽŵŽƟŽŶĂůŵĂƚĞƌŝĂůƐ͕ƌĞĐƌƵŝƟŶŐŚŽŵĞƐĂŶĚƐŵĂůůďƵƐŝŶĞƐƐĞƐƚŽďƵLJƚŚĞŝƌƐĞƌǀŝĐĞƐ͕ĂŶĚƐĞůůŝŶŐƚŚĞĐŽŵƉŽƐƚƚŽŶĞĂƌďLJĨĂƌŵĞƌƐ͘

ŽƌĞŽŵŵŝƚŵĞŶƚƐ
KƵƌƚĞĂŵĂŐƌĞĞƐƚŽƚŚĞĨŽůůŽǁŝŶŐĐŽƌĞĐŽŵŵŝƚŵĞŶƚƐƚŽŽƵƌƐĞůǀĞƐ͕ƚŽĞĂĐŚŽƚŚĞƌ͕ĂŶĚƚŽƚŚĞĐŽŵŵƵŶŝƚLJŽƵƌďƵƐŝŶĞƐƐƐĞƌǀĞƐ͗

• Empower each other to be the best we can be individually and as a team.tĞǁŝůůƐƚƌŝǀĞƚŽďĞůĞĂĚĞƌƐŝŶŽƵƌĐŽŵŵƵŶŝƚLJ

ĂƐǁĞĐŽŶƟŶƵĂůůLJŐƌŽǁŝŶŬŶŽǁůĞĚŐĞĂŶĚƐŬŝůůĂŶĚĞŵďƌĂĐĞĐŚĂůůĞŶŐĞƐ͘tĞǁŝůůĐƌĞĂƚĞĂƚĞĂŵĐƵůƚƵƌĞĨƵůůŽĨƉŽƐŝƟǀĞ
ĞŶĞƌŐLJ͕ĐŽŵŵƵŶŝĐĂƟŽŶ͕ĂŶĚŚŽŶĞƐƚLJ͘tĞǁŝůůĂůǁĂLJƐĂĐƚǁŝƚŚĐŽŶƐĐŝĞŶĐĞĂŶĚŶŽƌĞŐƌĞƚƐ͘

ͻDĂŬĞŽƵƌĐŽŵŵƵŶŝƚLJĂďĞƩĞƌƉůĂĐĞ͘tĞǁŝůůĐƌĞĂƚĞƐŽůƵƟŽŶƐƚŽƌĞĂůŶĞĞĚƐŝŶŽƵƌĐŽŵŵƵŶŝƚLJ͘tĞǁŝůůƐƚƌŝǀĞƚŽŵĂŬĞ
ƚŚĞƐĞƐŽůƵƟŽŶƐƐĞůĨͲƐƵƐƚĂŝŶŝŶŐĂŶĚůŽŶŐͲƚĞƌŵ͘

• Constantly learn and innovate.tĞǁŝůůůŝƐƚĞŶƚŽŽƵƌĐŽŵŵƵŶŝƚLJƚŽĚĞĞƉůLJƵŶĚĞƌƐƚĂŶĚƚŚĞŝƌŶĞĞĚƐĂŶĚĂůǁĂLJƐƚŚŝŶŬĂďŽƵƚ

ŶĞǁƐŽůƵƟŽŶƐ͘tĞǁŝůůĞŵďƌĂĐĞŽƉƉŽƌƚƵŶŝƟĞƐƚŽůĞĂƌŶĨƌŽŵŽƵƌŽǁŶĞdžƉĞƌŝĞŶĐĞƐ͕ĨƌŽŵĞĂĐŚŽƚŚĞƌ͕ĂŶĚĨƌŽŵŽƚŚĞƌƐŝŶŽƵƌ
ĐŽŵŵƵŶŝƚLJ͘

/ĨĂƚĂŶLJƉŽŝŶƚƐŽŵĞŽŶĞŽŶŽƵƌƚĞĂŵĨĞĞůƐƚŚĂƚǁĞĂƌĞŶŽƚƵƉŚŽůĚŝŶŐƚŚĞƐĞĐŽŵŵŝƚŵĞŶƚƐ͕ŝƚŝƐŶĞĐĞƐƐĂƌLJƚŚĂƚƚŚĞƚĞĂŵŵĞŵďĞƌ
ƚĂŬĞĂĐƟŽŶďLJďƌŝŶŐŝŶŐŝƚƚŽƚŚĞĂƩĞŶƟŽŶŽĨƚŚĞŽƚŚĞƌŵĞŵďĞƌƐŽĨƚŚĞƚĞĂŵ͘

Financial Statements
ZĞĨĞƌƚŽŚĂƉƚĞƌϴĨŽƌƐĂŵƉůĞĂĐĐŽƵŶƟŶŐƐƚĂƚĞŵĞŶƚƐ͘

Funding
DĞƚƌŽƉŽůŝƐdƌĂƐŚDĂŶĂŐĞŵĞŶƚǁŝůůĂĐƋƵŝƌĞŵŽƐƚŽĨŽƵƌŶĞĐĞƐƐĂƌLJƌĞƐŽƵƌĐĞƐƚŚƌŽƵŐŚŽƵƌĨĂŵŝůŝĞƐ͘KƵƌŵĂŝŶĞƋƵŝƉŵĞŶƚŶĞĞĚƐ
ĂƌĞƚĂŬĞŶĐĂƌĞŽĨďLJŽŶĞĨŽƵŶĚĞƌ͛ƐĨĂŵŝůLJĂůůŽǁŝŶŐƵƐƚŽƵƐĞƚŚĞŝƌŚŽŵĞĂƐŽƵƌƉůĂŶƚĂŶĚƐŽƌƟŶŐĂƌĞĂ͘ĚĚŝƟŽŶĂůůLJ͕ďŽƚŚĨŽƵŶĚĞƌƐ
ĂůƌĞĂĚLJŽǁŶďŝĐLJĐůĞƐƚŚĂƚǁŝůůďĞƚŚĞĮƌƐƚƚǁŽďŝĐLJĐůĞƐŽĨŽƵƌĐŽŵƉĂŶLJ͘dŚĞŽŶůLJĂĚĚŝƟŽŶĂůĐŽƐƚǁŝůůďĞǁŚĂƚŝƚĐŽƐƚƐƚŽŵŽĚŝĨLJ
ŽƵƌďŝŬĞƐĂŶĚƚŚĞďĂŐƐƚŚĂƚǁĞǁŝůůŶĞĞĚƚŽƉƌŽǀŝĚĞƚŽŽƵƌĐƵƐƚŽŵĞƌƐ͘tĞǁŝůůďŽƌƌŽǁĂƐŵĂůůůŽĂŶĨƌŽŵŽŶĞĨŽƵŶĚĞƌ͛ƐĨĂƚŚĞƌ͛Ɛ
ďƵƐŝŶĞƐƐƚŽĐŽǀĞƌŽƵƌŝŶŝƟĂůĐŽƐƚƐ͘tĞǁŝůůƉĂLJƚŚĞůŽĂŶďĂĐŬǁŝƚŚϯйŝŶƚĞƌĞƐƚŽǀĞƌƚŚĞŶĞdžƚϲŵŽŶƚŚƐ͘

^ĂŵƉůĞƵƐŝŶĞƐƐWůĂŶ | Appendix | 259

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