Transcript Entrepreneurship

Entrepreneurship
Is it for you???
Entrepreneurs
 Someone
who takes a risk to start a
business
 The process of owning, operating, and
establishing a business.
Differences between and
entrepreneur and manager????
A
manager does not assume all of the risk
like an owner
 A manager is limited in his decisionmaking
 The owner keeps all of the profits – the
manager gets a salary
Characteristics of entrepreneurs
 Creative
thinkers
 Independent
 Persistent
 Self-confident
 Organized
 Good decision-makers
 Open-minded/flexible
 Like challenges
Ways to determine if
entrepreneurship is right for
you?
 Assess
your interests
 Assess your aptitude
 Assess the advantages and
disadvantages of being an
entrepreneur
Advantages of entrepreneurship?
 Are
your own boss
 Choose a business that interests
you
 Can be creative
 Potential to make lots of
Disadvantages
 Entrepreneurship
is risky
 Have uncertain and irregular incomes
 Work long hours
 Must make all decisions by themselves
Successful Entrepreneurs
a self assessment – evaluate your
strengths and weaknesses
 Investigate the opportunities
 Do
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Is there a market?
How many hours will I work?
Do I have the right background?
 Set
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goals
Financial – how much money make, how long
to make a profit
Non-financial – personal satisfaction,
independence
Ways to obtain financing
 Banks
 Credit
Unions
 Loan agencies
 Friends
 Family
Offer financing for your
customers
 Credit
cards
 Layaway
 Outside finance companies
Professional Development:
Updates in your field
 Seminars
 Trainings
 Trade
shows
 Conferences
 Online classes
Writing Skills
 Business
letters - A more formal letter with
business content
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Typed
No grammar errors
Always put date
Use titles and names properly: Mrs., Mr. etc.
Be positive and direct
Use appropriate closings: sincerely, cordially,
etc.
Parts of a Business Letter
Memorandums (Memos)
 Short,
written form of business
communication that has a set format
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To: All students
From: Debbie Harris
Date: September 22, 201
Re: Chicago
http://www2.davidson.k12.nc.us/ndm/kb_curr/BigRocks/MarsBig
Rocks/BigRockMemo_ReviewMarsDay3AnsKey.pdf
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The Chicago trip will be.......(body)
Interoffice memos – memo from one person in
a company to another in the company (hand
Speaking Skills
 Verbal:
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When on the telephone
Speak Clearly and directly
Be cheerful
Be polite
Think about what you are going to say
Take notes
Non-verbal skills/ business
presentations
 Non-verbal:
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Your body language
Facial expressions
Hand movements
Position of body
Sound of voice
Presentations: When speaking in front of
a group
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Loud enough and clearly
Good posture
Eye Contact with crowd
Problem – Solving Skills
 Define
the problem: sales are down
 Gather information: surveys, focus groups,
employee feedback
 Identify various solutions – change product
mix
 Evaluate alternatives and select best
options: Choose more variety of jeans
 Take action: Buy more jeans targeted to
teens
 Evaluate the action: Look at sales
Technologies in business
 E-mail
- messages sent via the Internet
(typically not as formal)
 Fax machine – send hard copies to other
fax machines (usually put a cover sheet
with it)
 Voice mail – Leave a message that is
recorded for the recipient
 Cell phone – used for calls when out of the
office
Types of businesses
– produce the products
they sell (Gatormade Trailers, Toyota,
etc.)
 Manufacturers
– Store and sell products to
people other than final customer
 Wholesalers
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Modern Vending, Somerset Foods)
Types of businesses
– sell products directly to the
people who use or consume them
 Retailers
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Kroger, Kmart, Speedway, Autozone
Business – Sell services rather
than products
 Service
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Hairdressers, car washes, repair shops,
hotels
Types of Ownership
Proprietorship – A business owned
by one person exclusively (most common
form)
 Sole
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Advantages:
• Government has little control
• You are the main boss
• Keep all of the profits
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Disadvantages:
• You have all of the liability (can take your personal
assets)
• You work long hours
• You are the only one contributing mone
Partnership
– a business owned by two or
more people
 Partnership
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Advantages:
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Share responsibilities
Have other income besides your own
Share losses
Not a lot of government regulation
Disadvantages:
• Share the profits
• Are legally liable for the errors of the partner
Corporation
– Is treated independently of
its owners and has the legal rights of a
person
 Corporation
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Advantages:
• Can raise capital by selling stock
• Stockholders are only responsible for the money
invested (liability is less)
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Disadvantages:
• High government regulation
• Taxed higher (income is taxed twice
• Costly to set up
Franchise
– legal agreement that gives an
individual the right to market a company’s
product in a particular area
 Franchisor – person who offers franchise
for purchase
 Franchisee – person who buys franchise
agreement
 Franchise
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McDonalds
Wendyshttp://company.papajohns.com/franch
ise_opps/pdf/2010_Dev_Incentive.pdf
4 main functions of a business
 Business/Management/
Entrepreneurship – Someone to
manage/run the business
 Communication and Interpersonal
skills – verbal and nonverbal
communication
 Economics – how the economy affects
your business
 Professional Development – keeping
updated in your field
Social Responsibilities
 Follow
environmental laws (EPA)
 Conservation and recycling/Green
marketing
 Business ethics – fair, right, and honest
practices
 Participate in community service activities
Services that our Government
provides
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Military
 Police
 Fire protection
 Free public education
 Roads, bridges
 Public libraries
 Social welfare system: Medicare – elderly
Medicaid – poor
Supporter of business
 Provides
disaster relief after a natural
disaster. Example: Hurricane Katrina
 Run the Small Business Administration
(SBA) – which provides counseling and
educational materials to both businesses
and home owners http://www.sba.gov/
 To encourage global business activity by
establishing trade alliances with other
countries
 Example: Selling Nike shoes to
customers in Africa
Regulator of Businesses/Consumer and
worker Protection
 Consumer
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and worker protection:
OSHA – protects against unsafe
conditions
* Unhealthy chemicals
* Unsafe equipment
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Food and Drug Administration(FDA):
Protects consumers against bad food
and drugs
Other regulations
 Equal
Employment Opportunity
Commission – protects against
discrimination in hiring due to age,
gender, race, religion, disability,
national origin
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Regulation (cont.)
 Environmental
Protection Agency
(EPA) – protects against damage to
the environment
Exchange Commission –
regulates the sale of stocks and
bonds
 Securities
Government’s role as a
Competitor
 U.S.
Post office competes with UPS
and Fed Ex
Valley Authority (TVA) –
electric company
 Tennessee
– competes with other forms
of transportation like subways,
busses, taxis
 Amtrak
Consumer Protection Agencies
Trade Commission – investigation
of deceptive and misleading business
practices like false advertising, prevents
monopolies, etc.
 Federal
 Better
Business Bureau - Consumer and
Business Reviews, Reports, Ratings,
Complaints and Accredited Business
Listings http://www.bbb.org/
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Consumer Protection Agencies
Product Safety Commission –
 Home Page | cpsc.gov
 Consumer
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Protect "against unreasonable risks of injuries
associated with consumer products."
Recalls/hazards
Seven Marketing Functions
 Distribution
– getting the product to the
customer
 Pricing – competitive, fair, and profitable
pricing
 Selling – How you present product to
customer
 Product service management – How you
manage a new products introduction
Marketing Functions
– how you will inform,
persuade, remind your customer about the
product
 Financing – how you obtain the money for
your business, give your customers
financing
 Marketing information management –
gather data to make informed decisions.
 Promotion