Entrepreneurship Opportunities Every business begins with an idea that becomes a dream. Hard work and dedication are ESSENTIAL to owning your own business, whether you aspire to open a fancy restaurant or a simple diner.

What is an entrepreneur? A small business is any business with fewer than 100 employees. Most entrepreneurs begin by starting small businesses. Entrepreneur – a self motivated person who creates, manages and owns a business

Qualities of a Successful Entrepreneur Excellent Communication Skills Mathematical Ability Good Hygiene and Personal Appearance Skilled with Tools of Technology (ie. Computers) Self Confident

The Pros & Cons of a Foodservice Entrepreneur Advantages + Ownership – you decide what to create and how to create it. + Job Satisfaction – You get to do what you truly enjoy! + Earning Potential – You can earn a good living from a profitable business. Disadvantages - Financial Risk – Starting a business takes a lot of $. You could lose what you invest or even more! Competition – Many people out there are trying the same kind or a similar business. NO Guarantees. Opening a business, including a restaurant or other food related business, involves BIG RISKS. But if you are a wise entrepreneur, it could result in an exciting and profitable career!

3 Patterns of Restaurant Ownership Independent Restaurant Has one or more owners Not affiliated with national brand Chain Restaurant Such as McDonalds® or Pizza Hut® Individual restaurants that have the same atmosphere, service, menu, and quality of food Franchise Common form of ownership used by chain restaurants Franchise sells the business owner the rights to its name, logo, concept and products. The business owner agrees to run the business as outlined by the franchise company.

Types of Business Ownership Sole proprietorship – when a business has only one owner Partnership – a legal association of 2 or more people who share the ownership of the business. Corporation – created when a state grants an individual or a group of people a charter with legal rights. The owners buy shares, or parts of the company. If the business fails, the owners lose only the amount of $ that they have invested in the business. The owners are called shareholders and earn a profit based on the number of shares they own.

Opening a Restaurant – Once you have an idea… Step 1: Writing a Business Concept A business concept is a clear and concise description of an opportunity; this includes 4 elements: Product – What is the product and/or service being offered? The target customer (s) – Who will most likely buy a specific product or service? The benefit – What is special or desired about this particular restaurant (distinctive value, aspect or quality)? What will draw customers – convenience? Special kind of food or preparation (ie. organic, etc?) Distribution – drive through, delivery, sit-down, counter service, etc? A Business Concept NEEDS to be tested!!!! It provides the entrepreneur with a blueprint or plan to work from.

Some things done during a feasibility analysis would include: Step 2: Feasibility Analysis Feasibility means the likelihood or ability that something can be done or carried out. A FEASIBILITY ANALYSIS is the process used to test a business concept; it helps the entrepreneur decide whether a new business concept has potential. IT DETERMINES IF AN IDEA IS PRACTICAL! Some things done during a feasibility analysis would include: Investigating the various types of restaurants in an area before deciding to open a new one Considering industry standards such as: demographics, trends, possible barriers, target customers based on area demographics, and financing. Studying the competition – know what businesses might pose a competition for your business and analyze what will be key in making consumers choose yours.

Step 3: Making a Business Plan A business plan is a document that describes a new business and a strategy to launch that business. It shows the start-up and growth of a new venture. It is a complete and detailed picture of the business. The first step involves writing a BUSINESS DESCRIPTION. Writing a business plan is a detailed and comprehensive undertaking that involves the next step: Market Analysis. A Business Plan predicts the success of a business. A Business Plan is Critical in order to gain financial support (a loan) from potential lenders (bank). A financial plan provides projected financial statements.

Step 4: Market Analysis Doing a market analysis involves collecting and analyzing information aimed at understanding the behavior of consumers in a certain market. This information would be included in the business plan. After doing market research, the following may be done: Identify potential markets Analyze demand – Before developing or offering a new product, there MUST be a demand for it. Forecast sales – how much product can be expected to be sold and how much money generated from the sales Make decisions Finding a niche in the market demonstrates that a business has a small segment of the market whose needs are being met.

Production and Distribution – Terms to Know Production Management has 3 functions: Acquiring the resources needed to create the product, planning how to convert those resources into products, and making sure the products meet the standards set for them. Scheduling – Includes describing each activity that must be completed to produce goods or services, estimating the amount of time each activity will take to complete. Productivity – measure of how much a business produces in a given time Automation – use of machines to do the work of people; it can cut production time, reduce errors, and simplify procedures although it can VERY expensive Prototype – a working model of a product; in the case of a food business it may be what is used for taste testing / sampling; often must be practiced and made several times before deciding which one would be the prototype to sell Quality Control – a system for verifying and maintaining the desired standards in a product or service.

School Based Businesses Target Customers – Usually Faculty and/or students Creation of Portfolios: represent a cooperative effort among students, teachers, and parents Usually kept in a notebook, folder, or binder Includes internet research projects, sample of a business plan, samples/pictures of projects, samples of actual work Take a lot of time and work to prepare Should only include actual accomplishments completed by the student that can fit in the binder likes pictures of cakes made (not lists of websites or reports on uses of knives, large posters, etc)

School Based Business Problem Analysis If a Foods II class was unable to fill all orders for holiday candy, they should evaluate – OPERATIONS. If customers are unhappy with the packaging of the product produced by a Foods II class, they should evaluate – STANDARDS. If the Foods II class lost money on their project, but all products were sold, they should evaluate – FINANCIALS. If the Foods II class made many loaves of bread or 25 dozens of cookies, but only a few were sold, they should evaluate – MARKETING.