Understanding Entrepreneurial Trends Entrepreneurship

 businesses that conduct business mainly on the internet  Advantages: ◦ potential to attract a huge amount of customers ◦ faster business growth

 Provide services to people for many different reasons ◦ biggest and fastest growing part of the American economy ◦ Examples: Banking, Insurance, Education, Advertising, Real Estate, Trades, Tax Preparation

 Businesses that are run out of an individuals home ◦ Rapid business growth since the late 1990’s ◦ Examples: Consultants, Sales Reps, Writers, Graphic Artists, Web Designers, Survey Takers

 A business that focuses on a goodwill mission to better society  Examples: United Way, Salvation Army, Feed the Children, YMCA, American Red Cross

 Trend in business to improve processes, efficiency and marketing to gain a competitive advantage over competition

 Contracting with other companies for services

 Partnering with another company for mutual benefit

 Starting another company within a company

1. Brainstorming – thinking freely to generate new ideas 2. Recognize Needs as Opportunities 3. Evaluate Products & Services 4. Observe the world around you and the people 5. Learn about different types of businesses and industries

 Thinking creatively that results in a new way of doing something

 A small specialized market

 Personal characteristics that describe a population ◦ Age ◦ Gender ◦ Income ◦ Ethnic background ◦ Education ◦ Occupation

 Interests  Hobbies  Work

 Trade Magazines ◦ Periodical published for specific types of business or industries

 Specialty Magazines ◦ periodical that targets people with a specific interest ◦ Examples: Sports, Fashion, Computers & Electronics, Entertainment, Autos, Cooking

 Trade Show ◦ Show or exhibition in which vendors promote new products and do demonstrations to market products

 Newspapers  Internet  Government Agencies

Entrepreneurship

 Beliefs and principles that you choose to live by ◦ Define who you are ◦ Shape your attitudes and choices ◦ Identify priorities  Influenced by ◦ Family ◦ Religion ◦ Friends ◦ Society ◦ Personal Experiences

 a business in which one or more members of a family have a significant ownership interest in the business ◦ Typically small businesses ◦ Exceptions: Marriot, Mattel Toys ◦ Only 1/3 survive to the second generation

 Shared feeling of trust and togetherness  Family working as a team can achieve great things  Family profits

 It is tough to separate business and family  Can’t get away  Trouble viewing problems objectively without emotion  Backstabbing

 Could I work for someone in my family?  Do we share similar values & goals?  Clear Expectations?  Can we separate family & business when we go home each night?  Can we keep relationships positive?

 Buying the rights to set up a new business patterned on an existing model  A legal agreement to begin a business in the name of the recognized company  Examples: ◦ Subway ◦ Dunkin Donuts ◦ UPS Store ◦ Super 8 ◦ McDonald's

 Franchisee – buyer of the rights ◦ Example: John Doe, Susan Smith  Need initial investment in $30,000 - $250,000 range  Franchisor- seller of the rights ◦ Example: McDonald’s, Subway

 Usually less risky  Facility, employees, equipment, procedures are usually established  Customer base  Goodwill – loyalty to existing customers

 Read pg. 60 thru the end of the Section 3.2 on pg. 63 ◦ Franchises ◦ Evaluating a Business Opportunity ◦ Starting Your Own Business ◦ Answer #3 and #4 on pg. 63 in your journal