1. Career and Financial Management
Becoming an Entrepreneur

2. Objectives
Define entrepreneur and identify key traits of successful entrepreneurs
List the four ways to become a business owner
Identify forms of business ownership and factors that can affect business success

3. Small Businesses
The person who organizes and runs a business is an entrepreneur
99% of American companies are small businesses
Around 500 employees or less
Begin with a few employees

4. Traits of an Entrepreneur
Being an Entrepreneur
An entrepreneur’s life is challenging
Traits of an Entrepreneur
Sight and Foresight
Decision-making
Motivation

5. Advantages & Disadvantages
Independence
Stress
Flexibility
Administration
Excitement
Long Work Hours
Salary Potential
Financial Risk

6. Do You Have What it Takes?
Do you make good decisions quickly?
Can you supervise people well?
Can you motivate people to do their work well?
Do you have a good knowledge of the service or product you want to provide?
Are you comfortable around strangers?
Do you have unlimited ambition and drive?

7. The Bottom Line Being an Entrepreneur Requires specific traits
Has advantages and disadvantages
Not everyone has what it takes

8. Becoming a Business Owner
Four ways to go into business
Start a new business
Buy an existing business
Buy a franchise
Join a family business

9. Ideas for Starting a New Business
Hobby Business
Product Services
Personal Services
Business Services

10. Starting a New Business
ADVANTAGES
Develop your own reputation
Build business your own way
Personal satisfaction knowing you built the business
DIADVANTAGES
Requires more time and effort than buying an existing business
Start-up costs are high
Can be difficult to borrow money
No guarantee of success

11. Buying an Existing Business
Successful businesses for sale
Owner is retiring
Owner is starting a new business
Unsuccessful businesses for sale
Losing too much money
Determine if problems can be fixed before purchasing

12. Buying an Existing Business
ADVANTAGES
Puts you several steps ahead
Take advantage of previous owner’s agreements
Build on the goodwill of existing customers
Positive reputation
Trained staff
DIADVANTAGES
Poor location
Strong competition taking away business
Poor market outlook
Building or equipment may need expensive repairs or replacement
Poor reputation

13. Buying a Franchise
Franchise: the legal right to sell a company’s goods and services in a particular area
Many restaurants and real estate offices
Pay a percentage of your profits to the parent company

14. Buying a Franchise ADVANTAGES Recognizable product name
Established procedures and management systems
Established business reputation and customer goodwill
Training, advertising, financing, and support services
DIADVANTAGES
May be less profitable
Must follow established guidelines of parent company
Less personal satisfaction

15. Joining a Family Business
ADVANTAGES
Financing can be split amongst relatives
Trust and loyalty between family members
Working as a team can achieve more than as an individual
Same goodwill and trust of customers
DIADVANTAGES
Additional issues on top of typical business ownership stress
Not all families work well together
Difficulties can affect family relationships

16. The Bottom Line Start a Business Buy a Business BUSINESS OWNER
Family Business
Franchise

17. Forms of Business Ownership
Three basic ownership types
Sole proprietorship: business is completely owned by one person
Partnership: legal arrangement where two or more people share ownership of a business
Corporation: business chartered by a state that legally operates apart from the owner(s)

18. Financing Your Business
Starting a business requires money
Financing sources:
Personal savings
Loan from friends/family
Loan from commercial lenders
Develop a business plan and a financial plan before applying for loans

19. Business and Financial Plans
BUSINESS PLAN
Describes product
Business location
Number of employees
Salaries
Describes competition
Marketing plan
Timetable for starting
FINANCIAL PLAN
Start-up costs
Operating expenses
Cost of manufacturing product
Cost of selling product
Additional cost in the first few months

20. Succeeding in Business
Financing
Location
Business Success
Competition
Management

21. Loans from Friends/Family
The Bottom Line
Ownership
Financing
Success
Sole Proprietorship
Personal Savings
Financing
Starting a business
Partnership
Loans from Friends/Family
Management
Corporation
Commercial Lenders
Business Plan
Financial Plan
Competition
Location