1. E n t r e p u
Standard- BMA-IBT-7
Demonstrate an understanding of entrepreneurship through recognizing a business opportunity, how to start a business based on the recognized opportunity, and basics of how to operate and maintain that business.

2. What is entrepreneurship?
It is a business started by someone who notices a need for a product or service.
It is the key driver of our economy because high majority of jobs are created by small businesses, which later on become big businesses and give a lot of people jobs. 

3. Big Business
Little business
turns into….

4. Henry Ford

5. Famous Entrepreneurs

6. Mary Kay Ash Company: Mary Kay Position: Chairman Industry: Cosmetics
Mary Kay Ash founded the cosmetics empire that helped to empower and inspire thousands of women. Her worldwide brand is now established in more than 30 countries and has a sales force of more than one million. Kay's business techniques were unconventional and attracted much attention with actions like giving her top sales people pink Mary Kay Cadillacs as an incentive and appreciation of their contribution to the company.

7. ROBERT L. JOHNSON Company: The RLJ Company Position: Founder, CEO
Industry: Real Estate, Hospitality, Professional Sports, Media and Entertainment, Gaming
In 1980 Robert L. Johnson launched a cable channel targeted at African Americans called BET, Black Entertainment Television. BET became the first African American firm to be listed on the New York Stock Exchange in In 2001, Johnson became the first African American billionaire when he sold BET to Viacom for $3 billion. After the sale, Johnson formed the RLJ Companies, where he began new business ventures in sports, hotels, lotteries and restaurants.

8. Bill Gates Company: Microsoft Position: Chairman Industry: Technology
Bill Gates is one of the most influential people in the world. He is cofounder of one of the most recognized brands in the computer industry with nearly every desk top computer using at least one software program from Microsoft. According to the Forbes magazine (2008), Bill Gates is third richest man in the United States with an estimated $58 million.

9. Advantages Satisfaction from taking a risk in becoming a success
Showing expertise at skills
Working from home
Gaining profit

10. Disadvantages Total responsibility for the business Long hours
Financial risks

11. Importance to
Economic Development
Entrepreneurship helps local economies turn into global economies. They are often risk- takers and try to develop their economy.
Example : McDonald’s was located only in America, and it spread into world-wide.

12. Popsicle
Frank Epperson
11 yrs old
1905

13. What It Takes
Starting your own business may sound exciting, but it is not something to take on lightly. Do some soul searching first to determine . . .
If it is the right path for you?
If you are really cut out to be an entrepreneur?

14. what exactly is an entrepreneur?
en·tre·pre·neur [ahn-truh-pruh-nur, -noor; Fr. ahn- truh-pruh-nɶr] -a person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk.
Dictionary.com Unabridged (v 1.1) Based on the Random House Unabridged Dictionary, © Random House, Inc

15. How to become an entrepreneur?
Develop a product or create a service.
Become an independent representative for someone else's company, selling or distributing their products.
Buy an existing business or franchise.
Become an "intrapreneur," operating autonomously within a company.

16. Why start your own business?
Many people become entrepreneurs because they want …
To create something of their own, to have a sense of personal achievement.
To create substantial wealth.
To break out of the "corporate rat race"
To be their own boss.

17. downside
Being your own boss, however, has its downside. The most frequently cited disadvantage is the long hard hours, particularly during the start-up period. It takes a great amount of effort to get a business up and running. That means you may be working late into the night and every weekend for some time.

18. financial risk The risk that a company will not have adequate
cash flow to meet financial obligations.
Entrepreneurs assume risk. This makes them different from employees (who are people who work for someone else).
Until the business takes off, your income may go up and down dramatically.
In addition, you may have to invest some of your own savings and/or use your personal assets as collateral for business loans.

19. Responsibility
Running your own business is a tremendous responsibility.
Your employees depend on you to provide stable employment.
Your customers expect you to deliver on your promises.
Your suppliers and bankers expect you to pay your bills.
Your investors expect you to turn a decent profit.
Are you the kind of person that can handle that kind of pressure?

20. Characteristics
Studies have identified a variety of personality characteristics associated with successful entrepreneurs. Among the most important are a healthy sense of self confidence and an optimistic attitude.

21. Characteristics
Successful entrepreneurs take risks, but they are calculated risks. They don't plunge blindly into new situations. Instead, they are thorough and prepared.

22. Entrepreneurs…
Accepts Risks & Opportunities in Creating/Operating A New Business
Characteristics
Resourceful
Good Customer Relations
Desire To Be Own Boss- Gain Control Of Life
Build For Family
Tolerance For Uncertainty/Risk

23. Non-Financial Reasons To Start A Business
Source: CIBC World Markets, Economics & Strategy, “Secrets to Small Business Success”, research.cibcwm.com/economic_public/ download/sb-ssbs pdf

24. Financial Reasons To Start A Business
Source: CIBC World Markets, Economics & Strategy, “Secrets to Small Business Success”, research.cibcwm.com/economic_public/ download/sb-ssbs pdf

25. Recognizing Opportunity
Many of America’s most successful companies started with one person who recognized an opportunity and came up with an idea for a business in response to that opportunity.

26. According to the sba… Small Business Administration
In 2009, out of the 27.5 million businesses in the U.S., there were 5.9 million firms with employees and 21.4 million without employees. Small firms with fewer than 500 employees represent 99.9% of total businesses in the United States. Only 18,469 U.S. businesses are considered large.
Seven out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more.

27. Starting a Business Develop a Business Plan Acquire Finances
Meet Legal Requirements

28. Develop a Business Plan
A detailed proposal that describes a new business
Presented to potential investors and lenders
Most business plans are 30 pages or more.

29. Purposes of a business plan
To obtain financing
Banks and potential lenders require a business plan
Helps organize and analyze data critical to the new business
To provide a start-up proposal
Provides an outline to follow when starting the business

30. The components of a business plan
Executive summary: brief one- to two-page description of the key points of each section of the business plan
Product/service plan: presents
Product or service being offered
Unique features of product or service
Management team plan:
Qualifications of the entrepreneur
Qualifications of any partners who may be involved in the business venture

31. The components of a business plan
Industry/market analysis analyzes the:
Customers
Competition
Industry
Demographic, geographic, and economic data
Operational plan: includes all processes involved in producing and/or delivering the product or service to the customer

32. The components of a business plan
Organizational plan:
Management philosophy of the business
Key management personnel
Key employment policies
Marketing plan: Describes
How the business will make its customers aware of its products or services
The market being served
Marketing strategies
Promotional plan
Marketing budget

33. The components of a business plan
Growth plan: The growth plan presents plans for future expansion of the business
Financial plan: includes financial statements that will help forecast the future financial health of the business

34. Finance the Business
Identify family and friends who are potential investors.
Are there other businesses that would be probable investors?
Seek Employees

35. Finance the Business
Contact financial agencies for loans, grants and assistance:
Small Business Administration
Banks
Credit Unions
Insurance companies

36. The Legal Environment Permits or licenses Contracts Zoning laws Taxes
Additional legal requirements for some businesses:
Permits or licenses
Building Permits
Cosmetology license
First aid certification
Contracts
Between partners
Between owner and clients
Zoning laws
Taxes

37. (Protect Your Business)
The Legal Environment
(Protect Your Business)
Trademarks: Protect business’ name or logo
Patents: Protect invention of products or processes from theft
Copyright: Protect creative works:
Literary
Musical
Dramatic
Artistic work

38. Types of Business Ownership

39. Standard/Element
BMA-IBT-7: Demonstrate an understanding of entrepreneurship through recognizing a business opportunity, how to start a business based on the recognized opportunity, and basics of how of operate and maintain that business.
7.6: Differentiate between the types of business ownership.

40. Types of business ownership
Sole Proprietorship
Partnership
Franchise
Corporation

41. Sole proprietorship A business owned by only one person Advantages
Complete control
Sole decision maker
No corporate tax payments
Minimal legal costs
Few formal business requirements
Disadvantages
Personally liable for all debt
Assumes all risks of business
Business decisions rely solely on you
Investors are slow to invest

42. Partnership
A business owned by two or more people who share its risks and rewards
Disadvantages
Limited capital
Unlimited liability
Instability
Risk of implied authority
Lack of harmony
Non-transferability of interest
Lack of public confidence
Advantages
Easy to format
Diverse skills ad expertise
Large resources
Flexibility of operations
Sharing of risks
Benefits of unlimited liability
Promptness in decision making

43. corporation
Company that is registered by a state and operates apart from its owners.
Advantages
Shareholders have limited responsibility
Can obtain more capital through sale of actions
Can deduct the cost of benefits offered to employees
Disadvantages
Requires more time to integrate
Supervised and subject to rules of entities
Payment of more taxes

44. franchise
Contractual agreement to use the name and sell the products and services of a company in a designated geographic area.
Advantages
Owning an established business
A known brand
Simpler business financing
Business relationships
Support and security
Less likely to fail
Disadvantages
1. Having no control
Ties to suppliers
2. Risks from others
3. Franchise costs
4. Cut of your profit

45. Vocabulary
Unlimited liability: a liability that holds the owner fully responsible for a company’s debts
Limited liability: A claim that holds a firm's owners responsible for no more than the capital that they have invested in it.
Cooperative: Organization that is owned and operated by its members.
Nonprofit organization: A type of business that focuses on providing a service rather than making a profit.
Sole: having no sharer; being the only one
Income: A gain or recurrent benefit usually measured in money that derives from capital or labor.
Regulate: to bring under control of law or constituted authority