Should You Become an Entrepreneur?

1. 1 Should You Become an Entrepreneur? 1.1 All About Entrepreneurship 1.2 Is Entrepreneurship Right for You? 1.3 Exploring Ideas and Opportunities

2. Unit 1.1All About Entrepreneurship Goals Define entrepreneurship. Recognize the role entrepreneurs play in the U.S. economy. Examine the reasons that businesses succeed or fail. Chapter 1 Slide 2

3. Chapter 1 1. What is an Entrepreneur? • entrepreneurs • people who own, operate, and take the risk of a business venture • identify unmet needs in the marketplace • entrepreneurship • running a business of one’s own

4. Chapter 1 2. Employee vs. Entrepreneur • Employees • people who work for someone else • are subjected to neither the risks nor benefits of business ownership **Both make decisions, only the entrepreneur is directly affected by the consequences

5. Chapter 1 • Characteristics of Gen Y (that’s YOU!) • Want to be their own boss • Immediate feedback / gratification • Reasons for becoming an entrepreneur include: • leave the fast-paced corporate world • the desire to set your own schedule • the need to work out of your home • the wish to pursue a personal dream

6. Manufacturing Food products Stone clay, glass products Electronics equipment Wholesaling The business to whom you sell is not the end consumer Motor vehicle equipment Paper products Mining / Extracting Remove resources from the ground to be consumed Retailing Sell goods to consumers Clothing stores Florists Service Lawn care Painting All repair work Agricultural Produce fresh produce Produce farm products 3. Six Types of Entrepreneurial Businesses

7. Chapter 1 4. Recognizing Opportunity • Many companies began with one person who started a business based on a single opportunity. • Small businesses employ more workers than all of the country’s large corporations combined.

8. Chapter 1 2009 Business Statistics: • 25.8 million businesses in US • 5.8 million firms with employees • 18.6 million without • Small firms with fewer than 500 employees represent 99.9% of the 25.8 million businesses • Only 17,000 US businesses are considered large • 10.4 million are owned by women; employ 12.8 million people

9. Chapter 1 • Small business – contribute billions of dollars to economy and employ more workers than all of the largest corporations combined • More creative, take more risks • Experimentation and innovation technological change and increased productivity

10. Chapter 1 5. Entrepreneurs Who Changed America • Starbucks Coffee Company • Howard Schultz • Retailer founded Seattle, 1971 • 40+ million customers per week • Introduced new product, Espresso • Became international coffeehouse franchise

11. Chapter 1 • The Home Depot • Bernie Marcus and Arthur Blank • Corporate vision was to provide home improvement products • at the lowest price • with the best customer service • Within 30 years, has expanded to 2,100 stores

12. Chapter 1 • HARPO Productions, Inc. • Founded in 1986 • Oprah Winfrey is the first woman in history to own and produce her own talk show • HARPO Entertainment Group • HARPO Films • HARPO Video

13. Chapter 1 6. Business Success or Failure • 2/3 of new businesses survive at least 2 years • Over half of all new businesses fail within their first four years. • Success requires a firm understanding of how to run a business. • Perseverance is a requirement for success.

14. Chapter 1 Factors of success: • Adequate capital • Providing a product or service that meets needs • Owner’s education level • Owner’s reason for starting the business in the first place • Owner’s businesses experience **Many businesses have failed due to owner’s lack of business knowledge and planning**

15. Quick Review: Goals • Define entrepreneurship. • Recognize the role entrepreneurs play in the U.S. economy. • Examine the reasons that businesses succeed or fail.

16. Chapter 1 Lesson 1.2Is Entrepreneurship Right for You? Goals • Identify the characteristics of successful entrepreneurs. • Identify the characteristics of good team members. • Assess whether you have what it takes to succeed in your own business.

17. Chapter 1 Internet: The Entrepreneur Quiz ( Do you have what it takes?)

18. Chapter 1 7. Characteristics of Successful Entrepreneurs • Successful entrepreneurs are: • independent • self-confident • determined • goal-oriented • achievement-oriented • inclined to set high standards for themselves • creative • able to act quickly • technologically savvy

19. Chapter 1 8. Characteristics of Good Team Members • Good team members display the following traits: • commitment • competency • communication • cooperation • creativity

20. Chapter 1 9. Are You Right for Entrepreneurship? • self-assessment • an evaluation of your strengths and weaknesses • aptitude • the ability to learn a particular type of job

21. Chapter 1 10. Advantages of Entrepreneurship • Being your own boss • Choosing a business of interest to you • Being creative • Making large sums of money

22. Chapter 1 11. Assess the Disadvantages of Entrepreneurship • Risk • Uncertain and irregular incomes • Long hours • All decisions are made independently

23. Quick Review! Goals • Identify the characteristics of successful entrepreneurs. • Identify the characteristics of good team members. • Assess whether you have what it takes to succeed in your own business.

24. Chapter 1 Lesson 1.3Exploring Ideas and Opportunities Goals • Identify sources for new business ideas. • Recognize different business opportunities. • Identify you own personal goals.

25. Chapter 1 12. Look for Ideas • Opportunities • possibilities that arise from existing conditions • Ideas • thoughts or concepts that come from creative thinking

26. Chapter 1 • Ideas come from a variety of sources including: • hobbies and interests • past work experiences • discovery and invention

27. Chapter 1 13. Investigate Opportunities • Research can help you determine what is missing in a particular market. • Internet • Library • Small Business Administration (SBA.gov)

28. Chapter 1 • Trade shows • special meetings where companies of the same or related industry display their products

29. Chapter 1 Will people buy my product or service? How much money is required to start the business? How many hours per week will it take to run the business? Do I have the right background to run this business? What income will this business generate? What are the business risks? 14. Compare Different Opportunities

30. Chapter 1 15. Setting Goals

31. Chapter 1 Financial Goals • Financial goals should be: • Realistic • Measurable • Easily attainable in the time allotted • If you expect a lot of money immediately  most likely will be disappointed

32. Chapter 1 Nonfinancial Goals • Nonfinancial goals may include: • personal satisfaction • serving a community need • enjoying personal independence

33. Quick Review! Goals • Identify sources for new business ideas. • Recognize different business opportunities. • Identify you own personal goals.

34. Lesson 1.4Problem Solving for Entrepreneurs Goals List the six steps of the problem-solving model. Describe ways to improve your problem-solving skills. Chapter 1 Slide 34

35. 16. Use the Problem-Solving Process Chapter 1 Slide 35

36. Define the Problem write down what the problem is define why it is a problem quantify the problem Gather Information collect information that can help solve the problem Use the Problem-Solving Process Chapter 1 Slide 36

37. Identify Various Solutions identify all possibilities before selecting a particular solution Evaluate Alternatives and Select the Best Option quantify or rank alternatives Take Action implement the solution Evaluate the Action Chapter 1 Slide 37

38. 17. Other Items to Help Problem Solve • Communicate • Talk regularly with employees • Brainstorm • Generate a large number of fresh ideas • Usually in a group setting • Learn from mistakes • Don’t be afraid to make them, don’t forget to learn from them

39. Quick Review! Goals • List the six steps of the problem-solving model. • Describe ways to improve your problem-solving skills.