Should You Become an Entrepreneur?

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

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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
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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 ones own

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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

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• Characteristics of Gen Y (thats 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

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3. Six Types of Entrepreneurial Businesses

• 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

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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 countrys large corporations combined.

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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

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• 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

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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

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• 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

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• 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

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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.

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Factors of success

• Adequate capital
• Providing a product or service that meets needs
• Owners education level
• Owners reason for starting the business in the
  first place
• Owners businesses experience
• Many businesses have failed due to owners lack
  of business knowledge and planning

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Quick Review

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

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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.

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Internet The Entrepreneur Quiz ( Do you have
what it takes?)
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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

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8. Characteristics of Good Team Members

• Good team members display the following traits
• commitment
• competency
• communication
• cooperation
• creativity

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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

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10. Advantages of Entrepreneurship

• Being your own boss
• Choosing a business of interest to you
• Being creative
• Making large sums of money

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11. Assess the Disadvantages of
Entrepreneurship

• Risk
• Uncertain and irregular incomes
• Long hours
• All decisions are made independently

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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.

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Lesson 1.3Exploring Ideas and Opportunities

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

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12. Look for Ideas

• Opportunities
• possibilities that arise from existing conditions
• Ideas
• thoughts or concepts that come from creative
  thinking

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• Ideas come from a variety of sources including

• hobbies and interests
• past work experiences
• discovery and invention

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13. Investigate Opportunities

• Research can help you determine what is missing
  in a particular market.
• Internet
• Library
• Small Business Administration (SBA.gov)

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• Trade shows

• special meetings where companies of the same or
  related industry display their products

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14. Compare Different Opportunities

• 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?

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15. Setting Goals
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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

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Nonfinancial Goals

• Nonfinancial goals may include
• personal satisfaction
• serving a community need
• enjoying personal independence

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Quick Review!

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

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

• 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

Chapter 1
Slide 36
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• 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
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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
• Dont be afraid to make them, dont forget to
  learn from them

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Quick Review!

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

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