Family Business Lesson Plan: An Entrepreneurship Project on Building a Legacy

A comprehensive, project-based lesson plan for teaching the family business model. Students will analyze strengths, weaknesses, conduct a SWOT analysis, design a company, tackle succession planning, and create a final business pitch. Ideal for entrepreneurship and business classes.

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Lesson Plan: The Family Firm - Building a Legacy

Materials Needed:

  • Computer with internet access
  • Notebook and pen/pencil
  • Access to a word processor or presentation software (like Google Docs/Slides or Microsoft Word/PowerPoint)
  • Optional: Art supplies for logo design (paper, markers, colored pencils)

1. Learning Objectives (The Goal)

By the end of this lesson, you will be able to:

  • Analyze the unique strengths and weaknesses of a family business model.
  • Design a foundational plan for a hypothetical family business, including its mission, structure, and a basic succession plan.
  • Evaluate the significance of family businesses to the local and national economy.
  • Create and present a compelling pitch for your conceptual family business.

2. The Spark: Introduction & Brainstorm (15 minutes)

Let's start by thinking about businesses you already know. Did you know the following companies are family-owned or controlled?

  • Walmart (Walton family)
  • Ford Motor Company (Ford family)
  • Comcast (Roberts family)
  • LEGO (Kristiansen family)
  • Chick-fil-A (Cathy family)

Activity: The Local Landscape

  1. In your notebook, brainstorm at least five businesses in your town or city that you think are owned by a family. (e.g., a local restaurant, a hardware store, a mechanic's shop, a farm).
  2. For one of those businesses, jot down your thoughts: What makes it feel like a family business? Do you think being family-owned helps or hurts it? Why?

3. The Founder's Briefing: Core Concepts (30-45 minutes)

Before you build your own business, you need to understand the blueprint. We'll explore the key ideas through a mix of short readings and videos.

Task 1: Define and Characterize

Watch this short video on the basics of family business (Example: Search YouTube for "What is a Family Business? An Introduction"). As you watch, answer the following in your notebook:

  • What are the two key ingredients that make a business a "family business"? (Hint: It involves ownership and control).
  • What is the "Three-Circle Model"? Briefly sketch it and label the parts: Family, Business, and Ownership. Where would a daughter who works in the business but doesn't own shares fit? Where would a non-family CEO fit?

Task 2: The Double-Edged Sword (Strengths vs. Weaknesses)

Read a short article about the pros and cons of family businesses (Example: Search for "Harvard Business Review advantages disadvantages family business").

Create a T-chart in your notebook. On one side, list at least 4 Strengths (e.g., high level of trust, long-term thinking). On the other, list at least 4 Weaknesses (e.g., succession challenges, family conflict spilling into work).

Task 3: Economic Powerhouse

Do a quick web search for "family business economic impact" or "family business statistics US." Find and write down three key statistics that show the significance of family businesses. For example:

  • What percentage of the U.S. Gross Domestic Product (GDP) do they generate?
  • What percentage of new job creation are they responsible for?
  • Approximately how many family businesses are there in the country?

4. The Main Event: Design Your Family Business (90 minutes)

This is your chance to apply everything you've learned. You will create a concept for a brand-new family business. The goal is creativity and thoughtful application, not a perfect business plan.

Step 1: The Big Idea
What is your family good at or passionate about? Think about skills (baking, coding, gardening, fixing things) or shared interests (board games, hiking, classic movies). Brainstorm a business idea based on one of these. Example: Your family loves cooking Italian food, so you'll create "The [Your Last Name] Pasta Kit Company."

Step 2: The Foundation
In a new document (e.g., Google Doc), define your business:

  • Business Name: Be creative!
  • Mission Statement: What is your purpose? What value do you provide? (e.g., "To bring families together by providing easy, delicious, and authentic pasta meal kits.")
  • Family Roles: Who does what? Assign roles to at least three hypothetical family members (you can use your real family or make them up). Include yourself!
    • Example: Mom, Maria - Head Chef & Recipe Development. Dad, David - Head of Operations & Shipping. Me - Head of Marketing & Social Media.
  • Logo Concept: Sketch a simple logo on paper or create one using a free online tool.

Step 3: The Reality Check (SWOT Analysis)
Now, think critically. Based on the family dynamics you've created and the nature of your business, fill out a SWOT Analysis.

  • Strengths: What internal advantages do you have because you are a family? (e.g., "Our family's secret sauce recipe gives us a unique product.")
  • Weaknesses: What internal disadvantages might you face? (e.g., "My brother and I often argue, which could disrupt business decisions.")
  • Opportunities: What external factors could help you? (e.g., "The market for at-home meal kits is growing.")
  • Threats: What external factors could hurt you? (e.g., "Large corporations like Blue Apron are major competitors.")

Step 4: The Next Generation (Succession Plan)
This is the most critical and challenging part of a family business. Think about the future. Write a short paragraph outlining your "Succession Rule."

  • Who gets to take over the business? How is the next leader chosen? Is it the oldest child? The most qualified person (even if they aren't family)? What happens if no one in the family wants it?
  • Example: "The role of CEO will pass to the family member deemed most qualified by a board consisting of the current CEO and two non-family advisors. To be considered, a family member must have worked in the business for at least 5 years and have a degree in business or a related field."

5. Assessment: The Founder's Pitch (30 minutes)

Consolidate your work from Step 4 into a short presentation. This can be either:

  1. A 5-slide presentation (using Google Slides/PowerPoint).
  2. A 2-page executive summary (using Google Docs/Word).

Your pitch must include:

  • Slide/Section 1: Business Name, Logo, Mission Statement.
  • Slide/Section 2: The Family Team (who is involved and their roles).
  • Slide/Section 3: Your SWOT Analysis (present it clearly).
  • Slide/Section 4: Your Succession Rule.
  • Slide/Section 5: Why You'll Succeed (a concluding statement about how your family's strengths will overcome the weaknesses and threats).

When you are finished, present your pitch aloud as if you were asking for a small business loan. This helps you practice articulating your ideas clearly and confidently.

6. Reflection & Extension (15 minutes)

In your notebook, answer the following questions:

  • What was the most challenging part of designing your business?
  • What surprised you most about the characteristics of family businesses?
  • After this exercise, do you think starting a business with your own family would be a dream or a nightmare? Why?

Extension Activity (Optional):
Choose one of the famous family businesses from the start of the lesson (or find another one that interests you). Research its history of succession. Did they handle it well (like the Ford family, despite bumps), or did it lead to disaster (like the Gucci family)? Write a brief summary of what happened and one lesson other family businesses could learn from their story.

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