Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: why cash is important to a business
Learning Objective/s:
  • Describe the role of cash in meeting a business’s short‑term obligations.
  • Explain the differences between cash and profit and why cash is critical for operational continuity.
  • Construct a simple cash‑flow forecast and interpret its results to identify potential cash deficits or surpluses.
  • Evaluate common pitfalls in cash‑flow forecasting and suggest corrective actions.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with a cash‑flow forecast template
  • Calculator for each pair of students
  • Sample cash‑flow data (handout)
  • Sticky notes for quick exit tickets
 Introduction:

Begin with a short video clip showing a small shop that runs out of cash despite making a profit. Ask students to discuss why this can happen and link it to liquidity. Clarify that today’s success criteria are to understand cash’s importance, differentiate cash from profit, and create a basic cash‑flow forecast.
Lesson Structure:
  1. Do‑Now (5’): Quick quiz on profit vs. cash concepts (paper).
  2. Direct Instruction (10’): Teacher explains cash importance using the five bullet points from the source and highlights the cash‑vs‑profit table.
  3. Guided Practice (15’): Walk through the sample retailer cash‑flow forecast on the board; students fill in missing figures on their worksheets.
  4. Partner Activity (12’): In pairs, students create a one‑month cash‑flow forecast for a fictional café using the provided template.
  5. Check for Understanding (5’): Each pair shares one insight about a potential cash deficit and how they would address it.
  6. Common Pitfalls Discussion (8’): Review the list of pitfalls; students add any they noticed during the activity.
  7. Exit Ticket (5’): Write one sentence summarising why cash flow forecasting is essential for business survival.
Conclusion:

Recap the key reasons cash is the lifeblood of a business and how a cash‑flow forecast helps anticipate problems. Collect exit tickets and highlight a strong response. For homework, assign a short task: students must record their own household cash inflows and outflows for a week and prepare a simple cash‑flow statement.