Transcript Should You Become an Entrepreneur? Chapter 1

Chapter 1
Should You Become an
Entrepreneur?
1.1 All About Entrepreneurship
1.2 Is Entrepreneurship Right for
You?
1.3 Exploring Ideas and Opportunities
Unit 1.1
All About Entrepreneurship
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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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
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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 (that’s YOU!)
Want to be their own boss
Immediate feedback / gratification
 Reasons for becoming an entrepreneur
include:
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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
3. Six Types of
Entrepreneurial Businesses
 Manufacturing
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Food products
Stone clay, glass products
Electronics equipment
 Wholesaling
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The business to whom you
sell is not the end
consumer
Motor vehicle equipment
Paper products
 Mining / Extracting
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Remove resources from
the ground to be consumed
 Retailing
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Sell goods to consumers
Clothing stores
Florists
 Service
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Lawn care
Painting
All repair work
 Agricultural
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Produce fresh produce
Produce farm products
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.
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2009 Business Statistics:
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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
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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:
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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**
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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.
Lesson 1.2
Is 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:
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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:
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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
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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.
Lesson 1.3
Exploring 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?
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 Do I have the right
background to run
this business?
 What income will
this business
generate?
 What are the
business risks?
15. Setting Goals
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Financial Goals
 Financial goals should be:
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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.
Lesson 1.4
Problem Solving for
Entrepreneurs
Goals
 List the six steps of the problem-solving
model.
 Describe ways to improve your
problem-solving skills.
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16. Use the Problem-Solving Process
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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
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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
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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
 Don’t be afraid to make them, don’t forget
to learn from them
Quick Review!
Goals
 List the six steps of the problem-solving
model.
 Describe ways to improve your
problem-solving skills.