Our Economic System

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Chapter 13 Our Economic System
Lesson 13.2 Being Your Own Boss
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Discover

• The rewards and challenges of working for
  yourself
• How to start your own business

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Why Its Important

• In the free enterprise system, many people own
  and operate their own businesses. One day, you
  may be one of them.

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Key Terms

• entrepreneur
• business plan
• marketing

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Being Your Own Boss

• You may have a future as an entrepreneur.
• An entrepreneur is someone who organizes and runs
  a business.

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Being Your Own Boss

• More than 95 percent of the people employed in
  the United States work for small businesses.

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The Rewards and Challenges of Entrepreneurship




Advantages
Youre in Charge
Personal Satisfaction
Unlimited Income Potential
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Long Work Hours
Risk
Disadvantages
Competition
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Qualities of Entrepreneurs
Motivation
Sight and Foresight
Decision Making
Human Relations
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Launching Your Own Business

• Whether you launch your business this weekend,
  next summer, or in the future, you will need a
  plan.

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The Importance of Planning

• To run a successful business, you need a business
  plan.
• A business plan is a written proposal that
  describes your new business.

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Elements of a Business Plan
Shown to people who can lend you money to start
your business
Identifies where your business will be located
Business Plan
Identifies the goods or services you will offer
Outlines your goals and gives a timetable for
meeting them
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The Importance of Planning

• A business plan also describes who your customers
  will be and your marketing plan.
• Marketing is the process of developing,
  promoting, and distributing good and services to
  customers.

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Functions of Marketing
Market Research
Distribution
Selling
Finance
Service
Pricing
Promotion
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The Importance of Planning

• As part of your business plan, youll figure out
  how much it will cost to start and run your
  business.

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The Importance of Planning

• Many entrepreneurs borrow money from a commercial
  lender, such as a bank, to get their businesses
  started.

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Try This Activity
Develop a School-Based Business

• Work with a group of students. Brainstorm a list
  of businesses that would be successful at your
  school. Conduct research on other students to
  find out if they would patronize your business.

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Try This Activity
Develop a School-Based Business

• Prepare Your Business Plan
• Now develop the business plan.

continued
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Try This Activity
Develop a School-Based Business

• Conduct Research, Then Carry Out Your Plan Make
  sure your plan includes all the information
  listed. Then carry out your plan by starting the
  school-based business.

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The Importance of Planning

• Making a business plan is hard work, but its
  also exciting.
• A business plan is a dream on paper.

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Investigating Career Clusters
Manufacturing

• Manufacturing The process of making products by
  hand or by machine

continued
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Investigating Career Clusters
Manufacturing

• If you love to build things or make things, a
  career in manufacturing may be for you.

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Critical Thinking Review

• What should you consider in choosing a location
  for a business?

Critical Thinking
Q
continued
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Critical Thinking Review

• Answers include whether the business needs to be
  near customers or services location of
  competition the cost of property the condition
  of streets and buildings and the types of
  businesses in the area.

Critical Thinking
A
continued
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Critical Thinking Review

• What qualities of entrepreneurs are also
  important to have when you work for someone else?

Critical Thinking
Q
continued
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Critical Thinking Review

• Good employees are motivated and good at decision
  making. They can successfully relate to other
  people. These qualities are also required of
  entrepreneurs.

Critical Thinking
A
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End of Chapter 13 Our Economic System
Lesson 13.2 Being Your Own Boss