DO NOW: In your notebook: If you had the opportunity to start your own small business: What type of business would it be? How many hours a week would you work? How much start up money would you need? How many years would it take to be profitable?

Type of business 1: Food 2: Clothing 3: Entertainment 4: Other

Number of hours worked each week: 1: : : : 50+

Amount of start up money needed: 1: $10,000 2: $50,000 3: $100,000 4: $500,000

Number of years until you earn a profit: 1: 3 2: 5 3: 7 4: 10

Entrepreneurship and Small Business Chapter 5 Mrs. Nutt Intro to Business

Do you have the entrepreneurial qualities to make a small business work? Research shows that successful entrepreneurs have common characteristics. Are you in that group? Activity: How Entrepreneurial Are You? Complete the questions and add up your score Share your results with 2 or 3 around you Compare your results

Entrepreneurs Can Change the World So, what is an entrepreneur? Entrepreneurs are usually: take charge people self-directed people want to work for themselves often risk takers An entrepreneur is a person who recognizes a business opportunity and organizes, manages, and assumes the risk of a business enterprise, with the intent of increasing the market value of a business. Activity: “Who am I?” What entrepreneurs do we know?

Advantages of an Entrepreneurship A business started by someone who notices a need for a product or service is an entrepreneurship. 5 Advantages of an Entrepreneurship 1. Satisfaction in taking a risk 2. Becoming successful 3. Showing expertise and skills 4. Working from home 5. Gaining profit

Disadvantages of an Entrepreneurship 3 Disadvantages of an Entrepreneurship 1. Total responsibility for the business 2. Long hours 3. Financial risk The main reason that an entrepreneurship fails is the need for money

SMALL BUSINESS DO NOW: Did the entrepreneur that you researched start out as a small business owner?

How does an entrepreneur get started?

Small Business SBA is the Small Business Administration THE SBA Defines a small business as an independently owned business that usually has the owner as its manager. A small business Serves a limited geographic area Employs fewer than 500 people Is not dominant in its industry A virtual business or a dot-com company is a business that operates on the internet. Can you name some small businesses?

Advantages/Disadvantages of a small business 3 advantages of a small business 1. Being the boss 2. Opportunity to offer services that large companies cannot 3. Ease of formation 3 disadvantages of a small business 1. Effect of change 2. Managerial skills needed 3. Inadequate financial planning

Why some small business fail… Small business often fail because: Start with little money Freely extend credit Little business experience Don’t keep adequate records Don’t plan for ups and downs Haven’t mastered time management

What is a Business Plan A business plan is a written description of a new business venture that describes all aspects of the business. There are seven parts to a business plan: 1. Summary 2. Company description 3. Description of products/services 4. Marketing plan 5. Legal plan 6. Management and Operating plan 7. Financial plan What is the role of the business plan in entrepreneurial/small business success?

Advice for Small Businesses