Entrepreneur Starting your own business Unit 7

What is an Entrepreneur? Entrepreneur Entrepreneur –a person who organizes, manages, and assumes the risk of a business Risk Risk –possibility of loss Profit Profit –Earnings above the cost of doing business Loss Loss –Earnings below the cost of doing business

Characteristics of an Entrepreneur Persistent Persistent –continuing for a long period of time to accomplish a task Self-starter Self-starter A strong predisposition to be your own boss A strong predisposition to be your own boss High energy High energy A willingness to risk money and security A willingness to risk money and security Ability to inspire and energize others Ability to inspire and energize others Strong willed Strong willed Ability to learn from failures Ability to learn from failures May devote a disproportionate time to your business May devote a disproportionate time to your business Fiercely competitive Fiercely competitive A "never, never, never quit" attitude A "never, never, never quit" attitude

Famous Entrepreneurs Bill Hewlett – Hewlett Packard Bill Hewlett – Hewlett Packard Mike Ilitch – Little Caesars Pizza Mike Ilitch – Little Caesars Pizza Paul Orfaleo – Kinko’s Paul Orfaleo – Kinko’s Gordon Moore - Intel Gordon Moore - Intel Sam Walton - Walmart Sam Walton - Walmart Sean Combs – Sean John Clothing / Bad Boy Entertainment Sean Combs – Sean John Clothing / Bad Boy Entertainment Russell Simmons – Def Jam Records / Phat Farm Clothing Russell Simmons – Def Jam Records / Phat Farm Clothing Steven Spielberg - Dreamworks Steven Spielberg - Dreamworks Donald Trump – Trump Enterprises Donald Trump – Trump Enterprises Oprah Winfrey - Harpo Inc. Oprah Winfrey - Harpo Inc. Bill Gates – Microsoft Bill Gates – Microsoft Ted Turner – Turner Broadcasting Ted Turner – Turner Broadcasting Steve Wozniak - Apple Computers Steve Wozniak - Apple Computers Tyler Perry – Tyler Perry Productions Tyler Perry – Tyler Perry Productions Larry Page and Sergey Brin - Google Larry Page and Sergey Brin - Google Wayne Huizenga - Blockbuster Wayne Huizenga - Blockbuster J.K. Rowling - Harry Potter J.K. Rowling - Harry Potter Jeff Bezos – Amazon.com Jeff Bezos – Amazon.com David M. Overton - Cheesecake Factory David M. Overton - Cheesecake Factory Jerry Yang and David Filo - Yahoo Jerry Yang and David Filo - Yahoo Nolan Bushnell - Chuck E. Cheese Nolan Bushnell - Chuck E. Cheese Billy Blanks - Tae Bo Billy Blanks - Tae Bo

Calculating Profit and Loss Imagine a Lemonade Stand (real lemonade) Imagine a Lemonade Stand (real lemonade) –Expenses—(things we need before we get started that cost money) 4 things Cups Cups Lemons Lemons Sugar Sugar Ice Ice –Location and forecast for the day

Calculate You spent: You spent: –$2 on 50 cups –$5 on 25 lemons –$4 on 2 lbs of sugar –$2 on 100 ice cubs If you sell your lemonade for.25 cents a cup and you sell all 50 cups will you have a profit or loss? If you sell your lemonade for.25 cents a cup and you sell all 50 cups will you have a profit or loss?

Answer? Loss!! How much? -$0.50 Loss!! How much? -$0.50 Expenses=$13.00 Expenses=$13.00 – = 13 Sell 50 cups for.25 cents = $12.50 Sell 50 cups for.25 cents = $12.50 –50 X.25 = 12.5

What do you do now? Raise your prices Raise your prices –Advantages? Make more money Make more money ____________________ ____________________ –Disadvantages Customers not like it might lose them Customers not like it might lose them ______________________________ ______________________________ Cut your Expenses Cut your Expenses –Make weakened lemonade Lose customers when you cheapen the product Lose customers when you cheapen the product ______________________________________ ______________________________________ –Find lemons or sugar cheaper somewhere else