Hi Sara:
Prepared means being ready - ready by having the needed resources, lessons, equipment or instructional aids, handouts, etc available when needed. Even ready for extra questions, interruptions, or changing direction midtream. Readiness will allow this and the students won't necessarily know the change wasn't planned.
Students wnat to know their teacher is prepared. I think it's great to arrive early to get the class in order, but to be available should early arriving students can ask questions, or even just chat informally.
Regards, Barry