1. Small business ownership
Introduction

2. Key terms
Business – the buying / selling of products / services in order to make a profit
Profit – money a company has left after expenses and taxes have been paid
Entrepreneur – individual who is willing to take the RISK of investing time and money in a business that has the potential to make a profit or to incur a loss
Employee – people who work for someone else – they don’t assume any risk  

3. entrepreneurs
Sense the needs of the marketplace and take risks to reach the goals that are important to them
Innovative
Proactive in their decision making skills
The foundation of the small businesses that exist in our country’s economy
These small business owners are essential to the economic strength of our country
Sell products / services that customers need, at prices they are willing to pay
Responsible for the introduction of many new products / services into the economy. 

4. Do you control your life or does your life control you
 Do you control your life or does your life control you?  Which one do you think an entrepreneur does? 

5. What is a small business ?
The public often thinks of business only in terms of “Big Business”.  The Small Business Administration (SBA) defines a Big Business as having more than 100 employees and selling more that $1 million worth  of products / services in a year. 

6. Advantages of Entrepreneurship
Control your own destiny, create a fulfilling life
Following your passions / dreams
Achieve freedom from the direct supervision of a boss
Strive for the potential to achieve profits greater than a salary earned from working for someone else
The opportunity to help one’s community
Increases competition in the marketplace 

7. Disadvantages of Entrepreneurship
Business failure 
Obstacles
Financial insecurity
Long hours (well over 40 per week) 
Hard work
Unlimited liability (exception LLC)
Risk (providing funds to operate the business) 

8. Types of Entrepreneurial Businesses
Manufacturing
Wholesaling
Retailing
Service 
Agriculture
Mining   

9. Manufacturing
Companies produce the products they sell Ex: cars, paper, food products, and more
The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications
Manufacturing commonly employs a man-machine setup with division of labor in a large scale production

10. Wholesaling
Buys the products in large quantities from the manufacturer and sells smaller quantities to retail stores Ex: supplying Foot Locker with sneakers 
What do you think the 2 most common Wholesale Distributors are in NJ?
Costco Wholesale & BJ's Wholesale

11. retailing
Sell products directly to individuals  Ex: grocery store, clothing store 
Top 100 Retailers – 2016

12. Services, agriculture, & mining
sells intangible products    Ex: hairdressers, tutoring services, repair shops 
Agriculture:
generate fresh produce and farm products 
Mining: 
remove resources from the ground Ex: oil, coal  

13. Small business facts

14. Approximately 30 million businesses contribute billions of dollars each year to our economy.  The overwhelming majority of these businesses are small businesses.   

15. These small companies employ more workers than all of the country’s large corporations combined.  They are instrumental in reducing the poverty level of our country as a whole. 

16. Approximately 2/3 of all new small businesses will fail within the first five years 
The ultimate goal of all entrepreneurs is to match their values, attitudes, needs and expectations with a business opportunity. These small businesses apply for more patents per year than corporate employees

17. Fun facts

18. Entrepreneurs must make choices
• Income – there is a direct correlation between how much money and time is invested and how much potential profit there is   • Type of work – a decision about the type of work will dictate your main occupation, and will account for your time away from your families    • Lifestyle – do you like to travel or stay close to home, work at night or during the day?  Many entrepreneurs start businesses that they can operate from home.

19. STOP

20. 4 P's of marketing
The 4Ps of marketing is a model for enhancing the components of your ‘marketing mix’ – the way in which you take a new product or service to market. It helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand. Video example

21. 1) Customer 2) Company 3) Competitor
The 3 C's of marketing
1) Customer 2) Company 3) Competitor
These 3 variables are dynamic and inter dependent on each other, meaning if one changes, the other has to change
If you don’t capture the audience, someone else will. Hence pay equal attention to all three – your customer, your competitor and yourself

22. Please have a general understanding of the following words:
Dreamer                                  
Perseverance
Responsible 
Employee 
Entrepreneur 
Independent                
Self-Confident      
Goal-Oriented                                      
Innovative  
High energy level     
Determination 
Flexible 
Success-oriented 
Creativity 
Technical skills 
Organizational skills 

23. End of notes
Questions?