Before children can embark on a business project, they must feel comfortable with relevant mathematical skills. According to the University of Chicago's developmental description of third graders, students at this age should be working on arithmetic skills such as addition and subtraction with multiple digits. Basic multiplication and division skills, as well as a knowledge of fractions and decimals, will emerge over the course of the third grade.
Commence your class business project after children have had some time to adjust to third grade, and you as a teacher have assessed their mathematical level. Lessons on place value, decimals and money should be well underway before the project begins.
Introduce the idea of a business project to the class. Discuss money with the children, who will be eager to share their personal experiences with money, work and allowances. A field trip to a local business can give students an intimate understanding of how the economy works, including concepts such as location, niche or advertising.
Brainstorm proposals for the class business. Students should choose a product that they can make and sell to other students, to parents or online. Arts and crafts are easy to ship, while snacks or lemonade may be sold nearby.
After deciding on a product, help the students assess the production costs. Explain to children that businesses have to buy things, and create a diagram breaking down the price of materials and advertising. Decide on the quantity of product you will be making; preferably, choose a small amount for your first attempt. Work with the children to select a reasonable sale price and help them calculate the profit.
If your expected costs are high, encourage children to solicit investors for their project by writing letters to local businesses. A bank may be willing to offer the class a small loan in exchange for the positive publicity.
During each school week or day, allot some time to the class business. Some children may enjoy creating the product, while others prefer focusing on advertising, design or charting their progress. Set concrete, incremental goals so that children feel inspired by their success.
You may use the profits from your project to celebrate with a pizza party or other class event. Consider donating some of the proceeds to charity. Discuss the value of charity with the children, and allow them to research and choose the organization to make the experience more meaningful.