Use the internet to learn more about careers in consulting. Choose one of the job titles listed and answer the following questions. 1.Identify the minimum educational requirements for the job. Explain other training or education that might be needed for advancement. 2.Does this career interest you?  Business analyst  Management consultant  Performance consultant  Quality control consultant  Security consultant  Training consultant  Use the Occupational Outlook Handbook at CAREER OPPORTUNITIES IN…CONSULTING Bell Ringer 1

Chapter 6 ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

6-1 BECOMING AN ENTREPRENEUR

 Identify characteristics of successful entrepreneurs  Recognize the importance of entrepreneurship in the economy  Describe opportunities and risks of entrepreneurship TODAY’S GOALS

Someone who takes a risk in starting a business to earn a profit  Characteristics:  Desire to be own boss  Develop good initial plan  Special skills and abilities  Innovative ideas ENTREPRENEUR

the process of starting, organizing, managing, and assuming the responsibility for a business ENTREPRENEURSHIP

WHAT ARE SOME ADVANTAGES AND DISADVANTAGES OF TURNING A HOBBY INTO A BUSINESS? A:KNOWLEDGE AND EXPERTISE D: MIGHT NOT BE ENJOYABLE IF IT BECOMES YOUR JOB

SUCCESSFUL ENTREPRENEURS ARE… Entrepreneurs Are They Have Persistent Problem-solving skills Inquisitive Tolerance for ambiguity Energetic Strong integrity Goal oriented Personal initiative Independent Ability to secure resources Self-confident Capability to learn from failure Creative Willingness to work hard Reliable Ability to partner Competitive Ability to spot opportunity

 Which characteristics of successful entrepreneurs do you possess?  Which ones would you like to develop? CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS

Using Microsoft Publisher, create an advertisement or brochure that showcases four characteristics of effective entrepreneurs. Also, include ways that people can develop those characteristics if they don't currently possess them. Use the internet to research ways to develop characteristics. *Print and turn in with rubric when finished!*

three The U.S. government is taking steps to support the more than 6 million women who own their own businesses. Go to and read the latest news on women’s entrepreneurship. After exploring the website, write a summary on what you believe to be the three most important supports the website has to offer women. *Be prepared to share with the class*

 1 in 10 of all Americans years old is involved in entrepreneurship 625,000  Over 625,000 new businesses are created every year close  The same number of small businesses close as begin each year ENTREPRENEURSHIP & THE ECONOMY

EMPLOYMENT

60%  Over 60% of new jobs were created by businesses with fewer than 500 employees  Financing  friends, family, work colleagues, loans, credit  Venture capital-money provided by large investors to finance new products and new businesses that have a good chance to be very profitable  Productivity  Small businesses account for > half of the U.S. GDP ENTREPRENEURSHIP & THE ECONOMY

Innovation – invention or creation that is brand new  may sell to another company  Ex:  Apple computer – Steve Jobs & Stephen Wozniak  Post-It Notes – Arthur Fry & Spencer Silver OPPORTUNITIES OF ENTREPRENEURSHIP

Improvement – design change that increases the usefulness of a product, service, or process  Can be…  Improved design  More effective procedures  Greater attention to quality OPPORTUNITIES OF ENTREPRENEURSHIP

RISKS OF ENTREPRENEURSHIP

Reasons Businesses Started By Entrepreneurs Close Lack of adequate capital Low sales Higher than expected expenses Competitive pressure An owner unprepared to manage a growing business Operations requiring more time than the owner is willing to commit RISKS OF ENTREPRENEURSHIP 50 percent Over a 10-year- period, more than 50 percent of all new businesses are discontinued

 Where do entrepreneurship opportunities begin? Innovations (ideas about new products and services) Improvements (ideas for changes to existing products, services, or processes) GOAL 3

Page 131 #5

If you could start your own business what would it be and why? BELL RINGER 2

6-2 SMALL BUSINESS BASICS

 Identify important characteristics of small businesses  Recognize the competitive advantages of small businesses  Identify problems faced by many small businesses TODAY’S GOALS

An independent business with fewer than 500 employees  Details…  Owner = manager  One or fewer locations  Serves a small market  Not dominant in its field  99.9% of the 26 million U.S. businesses are small businesses SMALL BUSINESSES

 Create 60-80% of all new jobs  Largest number in services and retailing  Pg133 Fig. 6-3 SMALL BUSINESS EMPLOYMENT

COMMON TYPES OF SMALL BUSINESSES AS A PERCENT OF ALL SMALL BUSINESSES

Services and retailing are 2 categories in which small businesses can get a start and provide customer service and value that large businesses may not be able to match. WHY ARE SO MANY SMALL BUSINESSES IN SERVICES AND RETAILING?

INITIAL CAPITAL  Part-time or service businesses=$5000 or less  Full-time with buildings, equipment, and employees=$100,000 or more

 Meet unique needs of customers…  Have more customer contact  Located close to customers  Get direct information from customers on likes and dislikes SMALL BUSINESS ADVANTAGES

 Provide unique services…  Take a special interest in the customer  Spend time determining needs and alternatives SMALL BUSINESS ADVANTAGES

Most Common Reasons for Small Business Failure 1. Not keeping adequate records 2. Not having enough start-up money 3. Lack of management experience 4. Lack of experience with the type of business 5. Not controlling operating expenses 6. Poor location for the business 7. Failure to manage credit offered to customers COMMON PROBLEMS

WHAT DO YOU THINK WOULD BE THE HARDEST PART OF MANAGING A SMALL BUSINESS?

 Universities & Colleges  Chambers of Commerce Chambers of Commerce  Small Business Administration (SBA) Small Business Administration (SBA)  Service Corps of Retired Executives (SCORE) SMALL BUSINESS ASSISTANCE

Page 136 # 4 three eBay has become the home of many small businesses. Thousands of small business owners earn an excellent income by selling their products using the online auction services provided by eBay. Visit the eBay website and identify three ways a small business can use the website to support its operations. *Turn in when finished!*

How do small businesses provide unique services that large businesses cannot? BELL RINGER 3

6-3 STARTING A SMALL BUSINESS

 Recognize important factors to be considered when starting a business TODAY’S GOALS

 Hobbies  Interests  Business Experiences THE BUSINESS DECISION

 High Customer Traffic  Easily Accessible  Customers  Manufacturers  Distributers LOCATION, LOCATION, LOCATION!!!

 Start when demand is high TIMING

 Team work!!  Employees  Bankers  Lawyers  Accountants TEAM APPROACH

Many entrepreneurs are independent and not always good team players. How can this result in problems for the business?

Information  Customers  Competitors  Operations  Government Regulations Resources  Libraries  Colleges  Universities  Small Business Assistance Centers THE MOST IMPORTANT STEP IS PREPARATION!

Pretend your best friend is thinking about starting a small business. Write a letter to him/her offering advice on the things they should consider carefully before making a final decision. Be sure to include the key elements from pages of your book, along with the video we watched in class. The letter should be typed, double spaced and 12pt. font. *Turn in when finished!*

Where can small businesses find assistance? BELL RINGER 4

 Describe the elements of a business plan  Identify types and sources of financing for small business TODAY’S GOALS

 Business plan – written description of the business idea and how it will be carried out, including all major business activities  Elements:  Company description  Owner credentials  Product or service description  Market analysis (demand, customers, competition)  Financial plan  See pg. 140 Figure 6-4 MUST HAVE A PLAN!!

 Helps the owner for see…  Important activities  Problems  Time they will take  Cost  Persuade lenders and investors BUSINESS PLAN

 1. Gather and review information  Other BPs  Activities and financial performance of competitors  2. Develop strategic alternatives  Production  Marketing  Staffing  Financing  3. Write it!  Legal form  Products or services  Competition  Customers  Operations  Marketing  Finances STEPS TO A BP

BP

Starting & Managing A BusinessThinking About Starting Is Entrepreneurship For You? 20 Questions Before Starting Go to sba.gov and click Starting & Managing A Business. Click Thinking About Starting and select Is Entrepreneurship For You? Read the article. Select 20 Questions Before Starting and read the questions. Use the website to find the SBDC and SCORE offices closest to Oswego. Write a summary on your findings. *Be prepared to share your findings with the class!*

 Financing is a key step in starting and running a new business!!! SHOW ME THE MONEY!!!

 Start-up financing – money needed to open the business  Includes costs of…  Buildings  Equipment  Inventory (products or raw materials on hand)  Supplies  Licenses TYPES OF FINANCING

 Short-term financing – money needed to pay for the current operating activities of a business  Obtained for a period of less than a year and often for one or two months TYPES OF FINANCING

 Long-term financing – money needed for the main resources of a business that will last for many years  Land  Buildings  Equipment  Large amounts of money paid over many years TYPES OF FINANCING

 Owner-Supplied Money  Proprietorship  One person  Partnership  Each partner contributes  Corporation  Shareholders  Borrowed funds  Bank loans  Family or friends  Credit SOURCES OF $$$

 Start-Up  Short-Term  Long-Term WHAT ARE 3 TYPES OF FINANCING?

 Owner-Supplied Money  Borrowed Money WHAT ARE 2 SOURCES OF FINANCING?

Parts of your presentation… Location Picture Rent/Lease Amount Positives Negatives Final Choice Why

Test Thursday!!!