Chapter One Business Growth & Prosperity

Entrepreneurship Entrepreneur: Someone who starts, manages, and owns a business Most entrepreneurships start as small businesses Small Business: The term applied to any business that is operated by a one or a few individuals

Why Do People Become Entrepreneurs? To leave the fast paced corporate environment To be at home but still earn an income To pursue a personal dream

What are Characteristics of a successful Entrepreneur? Independent: They want to make their own decisions and do what they enjoy Self-Confident : They must have the confidence to make choices alone and bounce back from poor decisions. Determination/Perseverance : They must persist through hard times until goals are met. Goal Oriented : They know what they want, and they are able to focus on achieving it.

Creative: They think of new ways to market their business, and are always looking for new solutions to problems. Act Quickly: They are not afraid to make quick decisions when necessary in order to beat their competitors. Motivated : They are able to set and achieve challenging goals

Necessary Skills Skill 1: Leadership An ability to build consensus in the face of uncertainty. Skill 2: Communication The ability to keep a clear and consistent message. Skill 3: Decision Making Or more importantly, knowing when to make a decision. Skill 4: Being a Good Team Player Knowing when to trust and when to delegate. Skill 5: Ability to Telescope To focus in on the details and then move back to the bigger picture.

Assessing Your Aptitude Different jobs require different aptitudes. Aptitude is the ability to learn a particular kind of job. ie: Auto mechanics must possess aptitude for solving mechanical problems. They also must be good with their hands. Answering questions like this will help you identify the kinds of opportunities that might be good for you.

Pros and Cons of Entrepreneurship You are your own boss. No one tells you what to do. You choose a business that interests you. You can be creative. You can make a lot of money (money to the ceiling..endless bling).  It is risky. Going out of business or losing money (bye-bye bling).  Uncertain and irregular income. As the business goes so does the money.  You work long hours, no paid days off, and they sometimes work weekends and nights.  No one else to help you with decisions.

Growth of Small Business Most large businesses today began as very small businesses. Because they supplied products and services consumers desired and because they were well managed, they became larger and larger. For example, Subway began as a small business and now has over 13,000 restaurants around the country. McDonalds and Holiday Inn started as small businesses

Growth of Franchise Business Franchise: is a legal agreement in which a distributor buys the right to sell the franchising company’s product or service under the company’s name and trademark Subways, Pizza Huts, Roy Rogers are all examples of franchises Two parties must exist; the franchisor and the franchisee

Operating Your Business In order to run a business you have the option of being one of two extremes or attempting to meet in the middle. Businesses can operate effectively or efficiently.

Efficiency What do we mean by efficiency? Where a business has efficient production, it is operating at maximum output at minimum cost per unit of output.

Examples Olive Garden McDonalds Ford

Effectiveness  What do we mean by effectiveness?  Getting the customer exactly what they want

Which Fits You? EffectivenessEfficiency Focuses on the desired resultFocuses on doing one's work in the correct manner Seeks successesSeeks to avoid failure End of task most importantMeans or resource to do a task most important Oriented toward strategy and setting and keeping priorities Oriented toward keeping the present system going Uses a job description to define the work to be done and to set goals based on priorities Performs each of the stated duties of a job description in the correct manner. Attempts to find new ways to perform the task better Concerned with keeping the status quo (things the way they are) Anticipates changeReacts to change Flexible when change requires it.Inflexible -- determined to carry out plans regardless of change. Motivated toward growthComfortable with keeping things as they are. Constantly giving critical evaluation of a task Prone to keeping record of what is going on.

Being A (Blank) Student EffectivenessEfficiency Getting work done as fast as possible Taking as much time as necessary to get it done right

Pro’s and Con’s What would be the outcome of each example (How would the teacher/student feel)?