Unit 3: Entrepreneurship Chapter 10 Day 1: Characteristics & Skills of an Entrepreneur

Entrepreneur An entrepreneur is someone who takes risks and starts a venture to solve a ____________ or to take advantage of an ______________ An entrepreneur is someone who provides an innovative product or service to meet a consumer want or need Examples????? Problem Opportunity

Characteristics of an Entrepreneur Many entrepreneurs have most of the below characteristics: Risk Taker Goal-setting Perceptive Hardworking Curious Self-confident Imaginative Flexible Persistent Independent

Risk Taker Many entrepreneurs take on a high degree of risk when starting their own business Higher Risk = _________________ However, the greater the risk there is also a greater chance of failure To be successful however, an entrepreneur must try to minimize and manage risk Not possible to eliminate risk completely Need to take calculated risks Greater Reward

Perceptive E.g. Cott Corporation Entrepreneurs view problems as ______________ or _____________ They tackle problems head- on Do not avoid them E.g. Cott Corporation Read paragraph 2 on page 312 Opportunities Challenges

Curious Entrepreneurs like to know _______ things work They are interested in many aspects of the business from production to marketing and sales E.g. Ray Kroc Read paragraph 3 on page 312 How

Imaginative Creative Entrepreneurs are _____________ They come up with new ideas, new products and/or imagine solutions to problems Entrepreneurs have a vision They can see where they want to go and how to get there E.g. T.P. Phelan Read paragraph 2 on page 313 Creative

Persistent Rarely is a new business successful right away There are many challenges that go along with setting up a new business. These can include; Confronting criticism Finding money (especially during start-up) Stress Misreading the market A true entrepreneur will stick with their idea and keep trying, overcoming the many challenges they face

Goal-Setting For many entrepreneurs, one success may not be enough Many entrepreneurs are motivated by the excitement of starting up a new venture They set a goal, then develop a venture to achieve that goal Once a goal is achieved, they need a new goal to work toward Most often setting a new goal means starting another venture

Hardworking Many entrepreneurs work _______ hours even after their business has been open for a while and is successful They are driven to succeed E.g. J.M. Schneider Read paragraph 1 on page 314 Long

Self-Confident Entrepreneurs must ___________ in themselves They must be convinced that their ideas are worth the effort May have doubts, but their confidence will help them overcome those doubts Believe

Flexible Change There are no sure things in business The only constant is ____________ Technology changes, consumer tastes change, etc. An entrepreneur looks at change as an opportunity Entrepreneurs must be flexible to adapt to changing trends, technology, markets, rules and regulations, economic developments, etc. E.g. VCR to DVD Change

Independent Most entrepreneurs become entrepreneurs because they want _________________ They don’t like to be told what to do They want to be in control They like to make their own decisions and generally don’t thrive in a controlled environment Independence

Entrepreneurial Skills A ___________ is the ability to do something specific or to translate knowledge into action E.g. knowing how to cook, having woodworking skills, etc. It is easier to learn a skill than to develop a characteristic Enables you to translate knowledge into action To succeed, entrepreneurs must have skills in the below 3 areas; Research Management Relationships

1. Research Skills Entrepreneurs need to be able to complete marketing and accounting tasks, as well as all the other business activities discussed in the textbook They must identify what you need to know, and then use _____________ to find it They must be able to learn or acquire the knowledge you need Entrepreneurs must first __________ the information and then know how to properly ______ it Research Gather Use

Gathering Information First step in obtaining knowledge is to ask a good _______________ There are many sources of information including; Books Periodicals (magazines) Indexes and databases Professionals (e.g. lawyers and accountants) Federal government websites are also helpful for obtaining information/statistics on various industries and markets Question

Using Information Not all information gathered can be used or is useful Information gathered must be __________ through to answer your initial question The answer may lead to other questions, and answers will become more specific and focused as the business develops Sorted

2. Management Skills Remember that all management perform four different functions; Planning Organizing Directing Controlling An entrepreneur achieves goals by applying the above management skills to their personal, financial and material resources Entrepreneurs must organize their time and empower their staff

3. Relationship Skills Staff Suppliers Customers As an entrepreneur different relationships are necessary including those with _______, _________ and ______________ Employees need to feel that they are being treated fairly and that they are rewarded for their hard work Communication skills are critical to the success of an entrepreneur Staff Suppliers Customers

Day 1 Assigned Work Students please complete the following; Profile: Rumba Games Inc. Read pages 309 & 310 and then answer the 3 corresponding questions Characteristics & Skills of Entrepreneurs Activity Posted on ClassNet under Tasks

Unit 3: Entrepreneurship Chapters 10 & 11 Day 2: Assessing Business Ideas & Entrepreneurial Opportunities

Overview Before starting a business, it is important to create and have a __________________ A business plan is a document that describes the objectives of a business and summarizes the strategies and resources needed to achieve those objectives Business Plan

Criteria Feasibility Marketability Profitability A business plan must outline the following information; Feasibility Marketability Profitability

1. Feasibility Will the business idea work? You must consider the following factors; Financing Location of business Licenses and permits Suppliers Staff

A. Financing Must consider the financial needs of the business Usually accomplished by completing a ___________ You should outline; The amount of money needed The source(s) of the financing (where you will get the money from) Be specific. Need to also out the term, interest rate, amount of the loan is applicable Budget

B. Location Need to explain why you chose the location you did Include details such as; Address Rent or Mortgage payment Taxes Utilities

C. Licenses and Permits Different types of businesses require different types of ___________ and/or ___________ E.g. if you’re selling something you will require a Vendor’s Permit Should include a description of where, when and how you plan to obtain your permits and/or licenses Permits Licenses

D. Suppliers Must know your needs in advance Should make a list of every item you will need to buy from others (suppliers) Need to outline the following info for each item you plan to buy; Name of item Name of supplier (who you will by that item from) The price The terms of purchase

E. Staff Describe your staffing needs You should outline the below information; Number of employees you will need Title of positions to be filled Job descriptions How you plan to recruit for the roles

2. Marketability Must ensure there is a market for your product or service Must analyze and outline; Target market Competition Price of the product or service The characteristics that make your product or service unique

3. Profitability Costs Income Statement Must be able to identify all _________ associated with the venture Ensure that your revenue is greater than your costs Helpful to produce an ______________________ to show the projected revenue and any foreseeable expenses Costs Income Statement

Selecting a Venture If you decide to start up a new venture, you will need to figure out; The type of business you want to start AND How you will start it There are two ways to start up a business venture; Idea-driven opportunity Market-driven opportunity

1. Idea-Driven Opportunity An idea-driven opportunity is a venture that starts as the result of an _____________ or _____________ Invention A product or process that is a new idea; something that has never been seen or made before E.g. the first telephone Innovation Using new technologies, materials or processes to improve on existing products or on how they’re produced or distributed E.g. the cordless telephone Invention Innovation

1. Idea-Driven Opportunity You can run into a problem with this type of opportunity You may have a great idea, but what if no one wants to buy your invention or innovation? No customers have expressed an interest in your product, so you can’t know for sure that there will be demand for it when it is time to start selling

2. Market-Driven Opportunity A market driven opportunity is a venture that starts with an idea about the ___________ rather than about a product Entrepreneur looks for a ___________ base first and then develops a product suitable to that market Advantage You know the market wants the product Problem Do you have the expertise to design and make the product? Market Customer

Bringing Ideas & Marketing Together No venture is ever purely idea-driven or market- driven The idea person often needs help with marketing and the marketing person often needs help generating ideas Can either learn the skills yourself or hire someone Ultimately, the entrepreneur wants to answer one question? Is my venture _____________? A feasible venture is one that has the potential to succeed and has reasonable goals Feasible

Finding Entrepreneurial Opportunities A venture is feasible only when it solves a problem or satisfies a need or want Entrepreneurs must research what is not already available in the market If a product or service is already available, you must be able to __________ it through innovation To investigate the market for a new business, an entrepreneur should do two things; Segment the current market Create a product or service map Improve

Segmenting the Current Market A ______________________ is any part of an overall market that has common characteristics Segments can be large or small Easier to determine what is available in a market if segmentation is smaller Must identify what segment of the market your product or service will fit into before launching your business Once you have identified what segment you are in, you need to research your competition Market Segment

Product or Service Mapping ____________________ is an activity that allows an entrepreneur to visualize all products or services that are available in a particular segment and group them by specific features Involves looking at sales statistics, product history and any other information available about the product or service Based on that information, a product map is created Map shows all characteristics that make the product or service popular See page 342 of your textbook for an example Product Mapping

Making Your Venture Unique It is important to identify what will make your product or service ______________ from others currently in the market Need to set yourself apart so consumers will select your product or service instead of the ___________________ Different Competition’s

Day 2 Assigned Work Students please complete the following; Ethical, Moral & Legal Considerations Read page 321 and answer the 3 corresponding questions Researching Young Entrepreneurs Activity Posted on ClassNet under Tasks

Unit 3: Entrepreneurship Chapter 11 Day 3: Invention and the Impact of Innovation

Inventions If you create a new product, it is important to protect your invention so others can’t profit from it There are a number of ways to accomplish this including; Patents Copyrights Licensing Agreements

Patents A __________ is the registration of an inventor’s legal right of ownership of his/her invention, preventing others form using the invention without permission for a set period of time The process of obtaining a patent can be complicated and expensive May require the services of a lawyer Patent

Copyrights & Licensing Agreements A ________________ gives someone the exclusive right to publish, produce, sell or distribute an original work of literature, art, music, software, etc. A ____________________ gives permission from the inventor to allow another business to produce and sell their invention for a fee This is the easiest way for an inventor to profit from his/her invention or innovation, because it involves little to no cost on the inventor’s part Copyright Licensing Agreement

Royalties Royalties are the _________ paid to the owner of the patent, copyright or licensing agreement by someone who used it A royalty can be a fixed amount of money or a percentage of the total sales of the business Fees

Innovations An innovation uses new technologies, materials or processes to improve an existing product in some way Changes to an existing product could involve changing; How the product is used The Packaging The Marketing Strategy The Distribution Process The Design The Manufacturing Process

Changing How the Product is Used Sometimes a new market can be developed by finding a new _______ for an existing product E.g. Scotch Tape Originally advertised and used as a cover for bandages, to repair the ends of shoelaces, attach coins to cards, etc. Now advertised and primarily used for wrapping gifts Use

Changing The Packaging Often times a change in packaging can make the product more _______________ for the consumer E.g. tetrahedron-shaped milk carton, instead of plastic bags There is also a move to more environmentally-friendly packaging E.g. new Sun Chips bag The challenge is to ensure the consumer continues to recognize your product and buy it, once the packaging has been changed Convenient

Changing The Marketing Strategy Marketing strategies determine the ________________ for a product and provide companies with direction for their advertising campaigns E.g. a kid’s cereal that wants to appeal to a bigger target market will need to change its advertising to reflect this new direction, in an attempt to appeal to this expanded target market Target Market

Changing The Distribution Process A change to the distribution process should result in more _________, as more consumers will now ______ the product Can also reach more customers by going to a trade show A trade show is an exhibition where a large number of manufacturers and distributors of a particular type of product show their goods Trade shows also allow contact to be made with retailers or distributors who want to see the product Sales See

Changing The Design There are many reasons for changing the design of a product, including; Improving its function E.g. The Green Box – read paragraph 5 on page 354 Appealing to a new market segment E.g. in an effort to appeal to kids, canned pasta uses popular characters such as Disney princesses, Scooby-Doo and Dora the Explorer

Changing The Manufacturing Process Manufacturers must constantly review their production processes to; Make their products better and/or Make their products less expensive to produce New processes and new machinery can improve efficiency and lower production costs A small change could provide a wider variety of products for consumers E.g. a potato chip company could offer more flavours by adding extra machines

Day 3 Assigned Work Students please complete the following; Impact of Innovation Activity Handout provided Review Questions #8 & #10 On page 357 in your textbook