Computer Maintenance Entrepreneurship Trade & Industrial Education Copyright © Texas Education Agency, 2011. All rights reserved. Trade & Industrial Education

What is Entrepreneurship? Entrepreneurship is the organizing, managing, and operating of a small business. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Who should start a business? If you have a personality where you feel the following: A need for achievement A need for independence Self-confidence A high level of activity Courage, curiosity, and creativity Or if you are someone who wants to control his or her own destiny, you qualify as someone who should start a business. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Why should you start a company? Starting a company might be a way to make more money than you could working for someone else. It would be a chance to do something different. You could use your own ideas. You could be recognized in your profession. It would allow you to help society by providing new services. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Why should you start a company? You might like being your own boss. You would answer only to yourself. You could set your own hours. It would give you the chance to discover if you have the ability to do something on your own. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Why should you start a company? Recently, a Gallup Poll found that 7 out of 10 high school students are strongly interested in owning and operating a business someday. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship What should you know about starting your own business? You should thoroughly research the business. You need to know the amount of money it will take to start your business. You should be aware of the importance of a good business location. You will need to have a way to manage your inventory. You should not invest too much of your money in a way that it cannot be quickly changed to cash. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship What should you know about starting your own business? You will need to have good credit policies. You will need to limit the amount of money you take out of the business. You must carefully make plans for expanding your business. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship 11 steps for starting a new business Write a business plan including every aspect of your new business. Establish a checking account with a commercial bank. Decide if you need a business partner. Draw up a partnership agreement if you have a partner. Obtain a business loan if needed. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship 11 steps for starting a new business (cont.) Study the regulations that apply to the type of business you wish to start: Federal regulations Wages Health laws Fair trade State regulations Licenses Permits Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship 11 steps for starting a new business (cont.) County or City Regulations Zoning Inspection requirements Permits Licenses Obtain insurance to cover your business. Obtain information about taxes. Set up a record-keeping system. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship 11 steps for starting a new business (cont.) Decide if you will need to hire employees. Set up employee policies. Decide on skills required. Inform the public about your business by advertising. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Financial risk Failure risk What risks are involved? You will probably have to invest all of your personal savings. Over 70% of all bankruptcies in business involve businesses with less than $100,000 in liabilities. Failure risk 50% of all new businesses fail within the first two years of operation. 70% of all new businesses fail within five years. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship What risks are involved? Risk to your career If you are currently employed in one occupation, you will, at some point, quit your job to start a business. If your business does not succeed, it may be difficult to return to your old job. Personal Risk You must spend time away from your family. You will have less time for social activities. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship What kind of rewards can you expect? If your business is a success, you may be able to make more money than you could have working for someone else. It is a way to feel good about yourself from having used your own talents and having been a success doing it. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship What kind of business should you start? You may want a business that provides a service such as Automobile repair Dry cleaning Grocery Cleaning Computer service Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship What kind of business should you start? You may want a business that produces a product such as Clothing Custom jewelry Home Furnishings Bakery Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Resources to help you start a business Professionals are ready to help you in areas you may not know enough about. The US has many ways to distribute products. Many companies are willing to design packaging and market your product the way you want. Copyright © Texas Education Agency, 2011. All rights reserved.

Entrepreneurship Conditions that are good for starting a new business: People with skills are available to help you. Many people are not satisfied with big business. People change jobs often. People are willing to move in order to find work. Many people will work for a share of your business instead of being paid wages. Copyright © Texas Education Agency, 2011. All rights reserved.