AUGUST 23, 2010 Objective: Students will learn about the entrepreneurial startup process.

For Seniors: Pair up with a Senior and discuss: The difference between a Good and a Service What are the four Factors of Production? What is Scarcity? What are the two parts to Demand? Elastic Goods versus Inelastic Goods Everyone’s Back

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 Surplus – Too much supply for demand  Shortage – Too much demand for supply  Equilibrium – The point where consumers buy all of a product, leaving neither a surplus or a shortage. Suppy

The Entrepreneurial Process 1. The entrepreneur 2. The environment 3. The opportunity 4. Start-up resources 5. The new venture organization

The Entrepreneur  Sees the opportunity  Gathers the resources to take advantage of the opportunity  Creates a company to execute that opportunity

The Environment All those variables NOT controlled by the entrepreneur 1. The nature of the environment (uncertain, fast, changing, stable, conservative…) 2. Availability of resources (skilled labor, start-up capital…) 3. Realized value (favorable taxes, good market, supportive government policies) 4. Incentives (enterprise zones)

The Opportunity  An idea of commercial value

Start-up Resources May include:  Skilled labor  Management Expertise  Legal and financial advise  Location  Equipment  Customers

Organization  The last step in the entrepreneurial process is to formally organize the business and open for operations.

How many new businesses fail?  Talk to your neighbor… what percentage of new businesses do you think fail within 10 years?  According to Dun & Bradstreet 69.7% of new businesses are still in business 10 years later.

Ways a Business May Look Like a Failure  Discontinuance – a business operating under a new name or a business that has been purposely discontinued to start a new one.  Organization change – example: switching from sole proprietorship to a corporation.