Chapter 1: The Entrepreneurial Life Page 5

The Entrepreneurial Life What is an Entrepreneur? Most answers include: People who discover a market need, launch new businesses, take risks, changers, innovators, etc. These are all correct!! Can second generation owners or franchisees be considered entrepreneurs?

The Entrepreneurial Life Definition 1- Entrepreneur A person who relentlessly pursues an opportunity (new or existing) to create value while assuming risk AND reward They do more with less

The Entrepreneurial Life Definition 2- Bootstrapping Controlling resources, even when you don’t own them Huh? You don’t waste money even if it’s not yours!!

The Entrepreneurial Life Definition 3- Small Business Small compared to larger companies in their industry, geographically concentrated, few investors, and small management team What are some examples?

The Entrepreneurial Life Can you be BOTH a Small Business Owner and an Entrepreneur? YES! Definition 4- Entrepreneurial Opportunity An “economically attractive” and “timely” opportunity that creates value for prospective customers and the business owner

The Entrepreneurial Life Research Activity Work in groups to gather information about the following people Group 1- Alex Calderwood- Ace Hotels, Group 2- Shannon Guderian- Late Model Restoration Supply, Group 3- Jerry Murrell- Five Guys, Group 4- Elon Musk-PayPal, Group 5- John D. Rockefeller- Standard Oil, Group 6- Oprah Winfrey- Harpo Industries The basics: Who are they?, What did they do? How did they do it? Why did they do it? How are they entrepreneurs?

The Entrepreneurial Life Key Stat #1: According to the US Census Bureau, over 50% of all Small Business owners were raised in a “Small Business Family.” What are some reasons people seek to be Entrepreneurs?

The Entrepreneurial Life Enjoy Satisfying Work Find Fulfillment Develop Financial Wealth Be Your Own Boss Escape a Bad Situation

The Entrepreneurial Life “Choose a job you love, and you will never have to work a day in your life.”- Confucius When you truly enjoy coming to work and doing your job, what happens?

The Entrepreneurial Life Finding Fulfillment Not only happiness in your job, but making others’ lives better Who? Employees, your Customers, the Public How? Pricing Strategies, Free Meals, Donating Profits to Charities, Sponsorships in the community, etc.

The Entrepreneurial Life Internet Activity Who is Blake Mycoskie? What are some endeavors he’s started? How does he feel fulfillment?

The Entrepreneurial Life Developing Financial Wealth Is Money worth it? Be Your Own Boss What are some advantages and disadvantages?

The Entrepreneurial Life Escape a Bad Situation Definition 5- Reluctant Entrepreneur A person who becomes an Entrepreneur because of an extreme hardship What is hardship? Tina Aldatz- Foot Petals

The Entrepreneurial Life Definition 6- Refugees A person who becomes an Entrepreneur to escape an undesirable situation? What is an undesirable situation? Someone who is “burnt out”

The Entrepreneurial Life Founder Entrepreneurs v. Others Definition 7- Founders An entrepreneur who brings a new business into existence Definition 8- Franchisee An entrepreneur who is limited by a contractual relationship with a Franchisor

The Entrepreneurial Life High Potential Ventures v. Attractive Small Firms and Microbusinesses Definition 9- Gazelle (High Potential Venture) A gazelle is a small firm that has great potential for growth What are some famous gazelles?

The Entrepreneurial Life Definition 10- Attractive Small firm Potential for very large returns Construction, Manufacturing, Technology Key Stat #2 Women are starting new businesses at TWICE the rate of men!!

The Entrepreneurial Life Definition 11- Microbusiness Provide modest returns to owners (Some can be big $) Dry cleaners, beauty shops, Auto shops, etc.

The Entrepreneurial Life 5 Key Edges of Entrepreneurs 1.) Customer Focus 2.) Quality Performance 3.) Integrity and Responsibility Innovation Special Niche What is a niche market?

The Entrepreneurial Life 6 Characteristics of Entrepreneurs 1.) Commitment and Determination 2.) Leadership 3.) Opportunity Obsession 4.) Tolerance of Risk, Ambiguity, Uncertainty 5.) Creativity, Self-Reliance, and Adaptability 6.) Motivation to excel

The Entrepreneurial Life 6 Poor Attitudes 1.) Overestimate your abilities 2.) Lack of Market Understanding 3.) Hire mediocrity 4.) Fail to be member of the “team” 5.) Be domineering 6.) Not share any ownership

The Entrepreneurial Life Why are mentors important? Definition 12- Mentor A knowledgeable person who can offer guidance based on experience in a given field Wring activity Who are two mentors in your life? Why are they important to your development?