Recognizing Opportunity

Slides:



Advertisements
Similar presentations
Recognizing Opportunity
Advertisements

DO YOU WANT TO BE AN ENTREPRENEUR?. WHAT IT TAKES Starting your own business may sound exciting, but it is not something to take on lightly. Do some soul.
Entrepreneurship MGT 304.
1 Recognizing Opportunity Chapter 3: Understanding Entrepreneurial Trends Starting vs. Buying a Business.
Intro To Business Ch. 5 Entrepreneurship.
Read to Learn The four main ways to become a business owner and the advantages and disadvantages of each The different forms of legal business ownership.
Understanding Entrepreneurial Trends Entrepreneurship.
Select a Type of ownership
Recognizing Opportunity
PowerPoint Presentation
Recognizing Opportunity
Entrepreneurship and New Venture Management
ENTREPRENEURSHIP Unit 1.3 Students will explore entrepreneurial opportunities.
Warm-up: Record the definition in your notes for the following vocabulary words: B2B (business to business) ventures that sell product and services to.
Chapter 4.2 Own a Franchise or Start a Business
Chapter 4.2 Own a Franchise or Start a Business
SELECT A TYPE OF OWNERSHIP
Franchises.
ENTREPRENEURSHIP, NEW VENTURES, AND BUSINESS OWNERSHIP
How to Franchise Your Business
Recognizing Opportunity Back to Table of Contents.
Ch. 3: Recognizing Opportunity. Understanding Entrepreneurial Trends  Current Trends  Internet – Most Businesses have an Online Component  Service.
Opportunity Recognition
BUSINESS OPPORTUNITIES
Ways of Becoming a Business Owner
Entrepreneurship Chapter 4. What is an entrepreneur?  A person who runs and organizes their own business.  Must make good decisions  Find inventive.
All About Entrepreneurship CTAE-FS-11: Entrepreneurship - Learners demonstrate understanding of concepts, processes, and behaviors associated with entrepreneurial.
Being a Business Owner Section 4.2.
SELECT A TYPE OF OWNERSHIP
How to Franchise Your Business Speaker: Tony Fitzpatrick Managing Partner
PowerPoint Presentation to Accompany Management, 9/e John R. Schermerhorn, Jr. Prepared by: Jim LoPresti University of Colorado, Boulder Published by:
Recognizing Opportunity Back to Table of Contents.
Entrepreneurship: Owning Your Own Business
AB209 Small Business Management Unit 2 – Getting Started: From Idea to Business Venture.
To start a new business, buy an existing business, or buy a Franchise
AB209 Small Business Management Unit 2 – Getting Started: From Idea to Business Venture.
Facilitated by Wesley Clarence
Types of business ownership Chapter 4. Academic Preparation  To take business classes in high school  To go to college and get a degree in business.
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Chapter 8 Entrepreneurship and Innovation.
Jeopardy Key Terms Growth in Canadian Business Skills and Characteristics Invention vs. Innovation Entrepreneurs Q $100 Q $200 Q $300 Q $400 Q $500 Q.
Unit 1. Personal Values and Goals Owning a business is a huge responsibility Consider your personal values and goals Core values – beliefs and principles.
Recognizing Opportunity Glencoe Entrepreneurship: Building a Business Understanding Entrepreneurial Trends Starting Versus Buying a Business 3.1 Section.
5-1 Chapter 5: The Challenges of Starting a Business Exploring Business 2.0 © 2012 Flat World Knowledge.
Recognizing Opportunity 1 Whether you start a business from scratch or buy an existing business and make it better, owning a business that is compatible.
Chapter Take the steps to recognize an opportunity: 1. Study current trends 2. What are the current trends today? 2. Develop a business concept.
AB209 Small Business Management Unit 3 – Planning the Business and its Products or Services.
ONLINE BUSINESS 1. A company that conducts business by means of the internet.
CHAPTER 3 Recognizing Opportunity. Current Entrepreneurial Trends l more home-based businesses (from 6 to 41 million) fitness and health indulgence goods.
CHAPTER 6 ENTREPRENEURSHIP AND SMALL BUSINESS BOH4M1.
ENTREPRENEURSHIP Unit 1.3 Students will explore entrepreneurial opportunities.
Entrepreneurship CHAPTER 3 SECTION 2.  Values – beliefs and principles you choose to live by  Your values define who you are.  Core values do not change.
Entrepreneurship CHAPTER 3 SECTION 1.  To begin the entrepreneurial process, the first step is to identify a business opportunity.  The internet has.
Recognizing Opportunity 1 Examine current entrepreneurial trends Identify ways to recognize opportunity Discuss how to think creatively about opportunity.
Understanding Entrepreneurial Trends Section 1
INSTRUCTOR'S MANUAL Chapter 2 INSTRUCTOR'S MANUAL ENTREPRENEURSHIP.
ENTREPRENEURSHIP Unit 1.3
Initial Decisions: Starting Versus Buying a Business
ENTREPRENEURSHIP Unit 1.3
Starting Versus Buying a Business
Entrepreneurship and Innovation
Recognizing Opportunity
ENTREPRENEURSHIP Unit 1.3
Topic 2 : Cross Border Interdependence : Growth of Strategic ship Technology Partnership.
Global Entrepreneurship and Small Business Management
Recognizing Opportunity
ENTREPRENEURSHIP Unit 1.3
Recognizing Opportunity
Understanding Entrepreneurial Trends
© 2011 South-Western | Cengage Learning Global Entrepreneurship and Small Business Management Entrepreneurial Enterprises The Business Plan.
Starting Versus Buying a Business
Presentation transcript:

Recognizing Opportunity Entrepreneurship Ch 3 Recognizing Opportunity

Understanding Entrepreneurial Trends Current Trends Internet Business Transformed the way business is conducted Online Business – Business that conducts business by means of the internet Potential to attract a huge number of customers Service Businesses Most small business are service businesses Services – intangible things that a business does for us that enhances our lives

Understanding Entrepreneurial Trends Current Trends Home-Based Businesses Represents roughly 53% of all small businesses Many people who have lost their job due to cutbacks choose to work from home in the field where they were once employed Many companies choose Homesourcing (transfer of service industry employment from offices to home-based employment) to fill human resource needs

Understanding Entrepreneurial Trends Current Trends Green Businesses Design their business practices so that they promote sustainability (Venture seeks to achieve economic, environmental, and social goals without compromising the ability of future generations to meet their own needs) Includes: Food quality, energy resources, pollution, and human rights

Understanding Entrepreneurial Trends Current Trends Social Entrepreneurship Start business to improve society Identify social needs, such as finding employment for wounded veterans, combating pollution, or providing shoes for children who cannot afford them Focus on the arts Measure success by their positive impact they make on society

Understanding Entrepreneurial Trends Current Trends Focus on Technology An increased reliance on technology is the main trend that affect businesses today. Creates a strong competitive advantage

Understanding Entrepreneurial Trends Current Trends Outsourcing Contracting with other companies for services Allows small businesses to focus on what it does best while tapping into outside resources

Understanding Entrepreneurial Trends Current Trends Outsourcing Benefits Allows greater efficiency, saving time, and money Decreases overhead investment or debt Lowers regulatory compliance burdens Allow companies to start new projects quickly Makes companies more attractive to investors

Understanding Entrepreneurial Trends Current Trends Strategic Alliances Forming a partnership with another company Supply a product or service that is part of the other company Corporate Venture New venture started inside a large corporation Parent company supplies resources to the corporate venture to help the new venture get started New ventures usually become independent companies

Learning to Recognize Opportunity Creative and Innovation Creativity – Activity that results in innovation (finding new ways of doing something) All creativity leading to the invention of something new involves connection, discovery, invention, and application Connection – bring things together that are not usually connected Connection leads to a discovery that is turned into an invention

Learning to Recognize Opportunity Creative and Innovation Application – Is going beyond the original invention to other uses in new areas. Idea or Opportunity Ideas are generated by thinking creatively Opportunities are ideas that have commercial potential Innovative opportunity can be turned into a business Most business opportunities result from the entrepreneurs alertness to consumer needs and unfilled market niche (small specialized market)

Learning to Recognize Opportunity Creative and Innovation Understanding Industries One way to identify opportunities Industries – Group of businesses with a common purpose

Strategies for Thinking Critically New Enterprise Ideas Practice Brainstorming Brainstorm – Think freely to generate new ideas Ideas are not judged as good or bad Look at ordinary items in new ways Figure out new ways or uses you can find for it, Find creative solution's to common problems Connect unrelated items Try to come with new products Challenges to Creativity

Strategies for Thinking Critically Challenges Sources of Ideas Ideas can come to you from anywhere Observe the World Around You Watch People You can learn a lot about peoples wants and needs Watch for Demographics Changes Demographics – Personal characteristics that describe a population Includes age, gender, income, ethnic background, education, and occupation

Strategies for Thinking Critically Challenges Sources of Ideas Be an Avid Reader Consider Your Own Experiences Interests Practice thinking about the problems you encounter each day as you pursue your interest Hobby Turn into successful ventures Work Experience in the world of work can be an excellent source of business ideas

Strategies for Thinking Critically Consult outside sources Look at people, places, and things in the business community for business ideas Trade Magazines Periodical published for specific types of businesses or industries Contains articles, new products, services Specialty Magazines Periodicals that target people with special interests

Strategies for Thinking Critically Consult outside sources Trade Shows and Exhibits Vendors and manufactures introduce new items and promote established products and services Newspapers Provides ongoing source of ideas (Trends and Innovations)

Strategies for Thinking Critically Consult outside sources The Internet Government Agencies US Patent Office – contains detailed description of new products OSHA – Occupational Safety and Health Act

Starting versus Buying a Business Personal Value and Goals Values – Beliefs and principles you choose to live by Define who you are, shape you attitudes, and your choices, and help you identify your priorities Once you identify your core values, you can use them to lay out your goals for your future Goals are the objectives you are trying to achieve

Starting versus Buying a Business Entering the Family Business One way to experience entrepreneurship Important part of the US economy The rewards and challenges of family businesses Only about 1/3 of them survive to the second generation Greatest advantage is the trust and togetherness that family members share One of the greatest disadvantages is that its owners can never get away from the business

Starting versus Buying a Business The rewards and challenges of family businesses Important to establish clear lines of responsibility, be objective about family members qualifications, keeping decisions unaffected by personal emotions, and respect individual family members needs

Starting versus Buying a Business Questions to ask yourself Do you have the ability to work for a member of my family? Do I get along with the family members who I’ll be involved with? Do we share the same goals for the business? Do we share the same general goals for our personal lives? Can we be clear and specific about our expectations for each other?

Starting versus Buying a Business Questions to ask yourself Can I leave business problems at work when I go home? Can we maintain a positive family relationship? If you answered no to any of the questions, then we have a potential problem

Buying an Existing Business Acquire – Buy an existing business Less risky then starting a new one Because: Employees already hired and trained Equipment is already in place Company already has customers Goodwill – Customer loyalty Extremely valuable business asset

Buying an Existing Business Buying a Franchise Franchise – A legal agreement to begin a new business in the name of a recognized company Gives the franchisee (buyer) the right to a product, process, or service; training and assistance in setting up the business; and ongoing marketing and quality support while the business is in operation Most important advantage is that the entrepreneur does not incur all of the risk associated with starting a business

Buying an Existing Business Buying a Franchise Franchisee usually buys into a business with accepted name, product, or service. Franchisee is buying a way of operating a business and a product with name recognition Franchisee pays a fee and an annual royalty on sales, usually 3-8% Franchisor – Seller Franchisor is selling its planning and management experience

Buying an Existing Business Buying a Franchise Before buying franchise, understand all of the costs and limitations involved Evaluating a Business Opportunity Evaluate whether the business is a good prospect Why is it for sale? Hire an accountant to verify the value of the business’s inventory, accounts receivable, and assets

Buying an Existing Business Where to Find a Business Look in newspaper Most effective way - Network with people in the community You can hire a business broker – Someone whose job is to bring buyers and sellers together

Buying an Existing Business Questions to Ask? Is the business interesting to me and to other? Why is the owner selling? Check the businesses financial statements What is the business’s potential for growth? Business’s go through a cycle of growth – Growth, Maturity, and Decline

Starting Your Own Business Questions to ask: Do I have the motivation to start a new business from nothing? Does the business align with my personality, abilities, values, and goals? Do I have sufficient knowledge of basic operation to undertake the business? Do I have the necessary managerial skills? Do I have the right partners to help me with the business? Do I have enough financial resources to start from scratch? Am I willing to accept the risk?