1. Unit 3: Entrepreneurship Chapter 10 Day 1: Characteristics & Skills of an Entrepreneur

2. Entrepreneur
An entrepreneur is someone who takes risks and starts a venture to solve a ____________ or to take advantage of an ______________
An entrepreneur is someone who provides an innovative product or service to meet a consumer want or need
Examples?????
Problem
Opportunity

3. Characteristics of an Entrepreneur
Many entrepreneurs have most of the below characteristics:
Risk Taker
Goal-setting
Perceptive
Hardworking
Curious
Self-confident
Imaginative
Flexible
Persistent
Independent

4. Risk Taker
Many entrepreneurs take on a high degree of risk when starting their own business
Higher Risk = _________________
However, the greater the risk there is also a greater chance of failure
To be successful however, an entrepreneur must try to minimize and manage risk
Not possible to eliminate risk completely
Need to take calculated risks
Greater Reward

5. Perceptive E.g. Cott Corporation
Entrepreneurs view problems as ______________ or _____________
They tackle problems head- on
Do not avoid them
E.g. Cott Corporation
Read paragraph 2 on page 312
Opportunities
Challenges

6. Curious Entrepreneurs like to know _______ things work
They are interested in many aspects of the business from production to marketing and sales
E.g. Ray Kroc
Read paragraph 3 on page 312
How

7. Imaginative Creative Entrepreneurs are _____________
They come up with new ideas, new products and/or imagine solutions to problems
Entrepreneurs have a vision
They can see where they want to go and how to get there
E.g. T.P. Phelan
Read paragraph 2 on page 313
Creative

8. Persistent Rarely is a new business successful right away
There are many challenges that go along with setting up a new business. These can include;
Confronting criticism
Finding money (especially during start-up)
Stress
Misreading the market
A true entrepreneur will stick with their idea and keep trying, overcoming the many challenges they face

9. Goal-Setting For many entrepreneurs, one success may not be enough
Many entrepreneurs are motivated by the excitement of starting up a new venture
They set a goal, then develop a venture to achieve that goal
Once a goal is achieved, they need a new goal to work toward
Most often setting a new goal means starting another venture

10. Hardworking
Many entrepreneurs work _______ hours even after their business has been open for a while and is successful
They are driven to succeed
E.g. J.M. Schneider
Read paragraph 1 on page 314
Long

11. Self-Confident Entrepreneurs must ___________ in themselves
They must be convinced that their ideas are worth the effort
May have doubts, but their confidence will help them overcome those doubts
Believe

12. Flexible Change There are no sure things in business
The only constant is ____________
Technology changes, consumer tastes change, etc.
An entrepreneur looks at change as an opportunity
Entrepreneurs must be flexible to adapt to changing trends, technology, markets, rules and regulations, economic developments, etc.
E.g. VCR to DVD
Change

13. Independent
Most entrepreneurs become entrepreneurs because they want _________________
They don’t like to be told what to do
They want to be in control
They like to make their own decisions and generally don’t thrive in a controlled environment
Independence

14. Entrepreneurial Skills
A ___________ is the ability to do something specific or to translate knowledge into action
E.g. knowing how to cook, having woodworking skills, etc.
It is easier to learn a skill than to develop a characteristic
Enables you to translate knowledge into action
To succeed, entrepreneurs must have skills in the below 3 areas;
Research
Management
Relationships

15. 1. Research Skills
Entrepreneurs need to be able to complete marketing and accounting tasks, as well as all the other business activities discussed in the textbook
They must identify what you need to know, and then use _____________ to find it
They must be able to learn or acquire the knowledge you need
Entrepreneurs must first __________ the information and then know how to properly ______ it
Research
Gather
Use

16. Gathering Information
First step in obtaining knowledge is to ask a good _______________
There are many sources of information including;
Books
Periodicals (magazines)
Indexes and databases
Professionals (e.g. lawyers and accountants)
Federal government websites are also helpful for obtaining information/statistics on various industries and markets
Question

17. Using Information
Not all information gathered can be used or is useful
Information gathered must be __________ through to answer your initial question
The answer may lead to other questions, and answers will become more specific and focused as the business develops
Sorted

18. 2. Management Skills
Remember that all management perform four different functions;
Planning
Organizing
Directing
Controlling
An entrepreneur achieves goals by applying the above management skills to their personal, financial and material resources
Entrepreneurs must organize their time and empower their staff

19. 3. Relationship Skills Staff Suppliers Customers
As an entrepreneur different relationships are necessary including those with _______, _________ and ______________
Employees need to feel that they are being treated fairly and that they are rewarded for their hard work
Communication skills are critical to the success of an entrepreneur
Staff
Suppliers
Customers

20. Day 1 Assigned Work Students please complete the following;
Profile: Rumba Games Inc.
Read pages 309 & 310 and then answer the 3 corresponding questions
Characteristics & Skills of Entrepreneurs Activity
Posted on ClassNet under Tasks

21. Unit 3: Entrepreneurship Chapters 10 & 11 Day 2: Assessing Business Ideas & Entrepreneurial Opportunities

22. Overview
Before starting a business, it is important to create and have a __________________
A business plan is a document that describes the objectives of a business and summarizes the strategies and resources needed to achieve those objectives
Business Plan

23. Criteria Feasibility Marketability Profitability
A business plan must outline the following information;
Feasibility
Marketability
Profitability

24. 1. Feasibility Will the business idea work?
You must consider the following factors;
Financing
Location of business
Licenses and permits
Suppliers
Staff

25. A. Financing Must consider the financial needs of the business
Usually accomplished by completing a ___________
You should outline;
The amount of money needed
The source(s) of the financing (where you will get the money from)
Be specific. Need to also out the term, interest rate, amount of the loan is applicable
Budget

26. B. Location Need to explain why you chose the location you did
Include details such as;
Address
Rent or Mortgage payment
Taxes
Utilities

27. C. Licenses and Permits
Different types of businesses require different types of ___________ and/or ___________
E.g. if you’re selling something you will require a Vendor’s Permit
Should include a description of where, when and how you plan to obtain your permits and/or licenses
Permits
Licenses

28. D. Suppliers Must know your needs in advance
Should make a list of every item you will need to buy from others (suppliers)
Need to outline the following info for each item you plan to buy;
Name of item
Name of supplier (who you will by that item from)
The price
The terms of purchase

29. E. Staff Describe your staffing needs
You should outline the below information;
Number of employees you will need
Title of positions to be filled
Job descriptions
How you plan to recruit for the roles

30. 2. Marketability
Must ensure there is a market for your product or service
Must analyze and outline;
Target market
Competition
Price of the product or service
The characteristics that make your product or service unique

31. 3. Profitability Costs Income Statement
Must be able to identify all _________ associated with the venture
Ensure that your revenue is greater than your costs
Helpful to produce an ______________________ to show the projected revenue and any foreseeable expenses
Costs
Income Statement

32. Selecting a Venture
If you decide to start up a new venture, you will need to figure out;
The type of business you want to start
AND
How you will start it
There are two ways to start up a business venture;
Idea-driven opportunity
Market-driven opportunity

33. 1. Idea-Driven Opportunity
An idea-driven opportunity is a venture that starts as the result of an _____________ or _____________
Invention
A product or process that is a new idea; something that has never been seen or made before
E.g. the first telephone
Innovation
Using new technologies, materials or processes to improve on existing products or on how they’re produced or distributed
E.g. the cordless telephone
Invention
Innovation

34. 1. Idea-Driven Opportunity
You can run into a problem with this type of opportunity
You may have a great idea, but what if no one wants to buy your invention or innovation?
No customers have expressed an interest in your product, so you can’t know for sure that there will be demand for it when it is time to start selling

35. 2. Market-Driven Opportunity
A market driven opportunity is a venture that starts with an idea about the ___________ rather than about a product
Entrepreneur looks for a ___________ base first and then develops a product suitable to that market
Advantage
You know the market wants the product
Problem
Do you have the expertise to design and make the product?
Market
Customer

36. Bringing Ideas & Marketing Together
No venture is ever purely idea-driven or market- driven
The idea person often needs help with marketing and the marketing person often needs help generating ideas
Can either learn the skills yourself or hire someone
Ultimately, the entrepreneur wants to answer one question?
Is my venture _____________?
A feasible venture is one that has the potential to succeed and has reasonable goals
Feasible

37. Finding Entrepreneurial Opportunities
A venture is feasible only when it solves a problem or satisfies a need or want
Entrepreneurs must research what is not already available in the market
If a product or service is already available, you must be able to __________ it through innovation
To investigate the market for a new business, an entrepreneur should do two things;
Segment the current market
Create a product or service map
Improve

38. Segmenting the Current Market
A ______________________ is any part of an overall market that has common characteristics
Segments can be large or small
Easier to determine what is available in a market if segmentation is smaller
Must identify what segment of the market your product or service will fit into before launching your business
Once you have identified what segment you are in, you need to research your competition
Market Segment

39. Product or Service Mapping
____________________ is an activity that allows an entrepreneur to visualize all products or services that are available in a particular segment and group them by specific features
Involves looking at sales statistics, product history and any other information available about the product or service
Based on that information, a product map is created
Map shows all characteristics that make the product or service popular
See page 342 of your textbook for an example
Product Mapping

40. Making Your Venture Unique
It is important to identify what will make your product or service ______________ from others currently in the market
Need to set yourself apart so consumers will select your product or service instead of the ___________________
Different
Competition’s

41. Day 2 Assigned Work Students please complete the following;
Ethical, Moral & Legal Considerations
Read page 321 and answer the 3 corresponding questions
Researching Young Entrepreneurs Activity
Posted on ClassNet under Tasks

42. Unit 3: Entrepreneurship Chapter 11 Day 3: Invention and the Impact of Innovation

43. Inventions
If you create a new product, it is important to protect your invention so others can’t profit from it
There are a number of ways to accomplish this including;
Patents
Copyrights
Licensing Agreements

44. Patents
A __________ is the registration of an inventor’s legal right of ownership of his/her invention, preventing others form using the invention without permission for a set period of time
The process of obtaining a patent can be complicated and expensive
May require the services of a lawyer
Patent

45. Copyrights & Licensing Agreements
A ________________ gives someone the exclusive right to publish, produce, sell or distribute an original work of literature, art, music, software, etc.
A ____________________ gives permission from the inventor to allow another business to produce and sell their invention for a fee
This is the easiest way for an inventor to profit from his/her invention or innovation, because it involves little to no cost on the inventor’s part
Copyright
Licensing Agreement

46. Royalties
Royalties are the _________ paid to the owner of the patent, copyright or licensing agreement by someone who used it
A royalty can be a fixed amount of money or a percentage of the total sales of the business
Fees

47. Innovations
An innovation uses new technologies, materials or processes to improve an existing product in some way
Changes to an existing product could involve changing;
How the product is used
The Packaging
The Marketing Strategy
The Distribution Process
The Design
The Manufacturing Process

48. Changing How the Product is Used
Sometimes a new market can be developed by finding a new _______ for an existing product
E.g. Scotch Tape
Originally advertised and used as a cover for bandages, to repair the ends of shoelaces, attach coins to cards, etc.
Now advertised and primarily used for wrapping gifts
Use

49. Changing The Packaging
Often times a change in packaging can make the product more _______________ for the consumer
E.g. tetrahedron-shaped milk carton, instead of plastic bags
There is also a move to more environmentally-friendly packaging
E.g. new Sun Chips bag
The challenge is to ensure the consumer continues to recognize your product and buy it, once the packaging has been changed
Convenient

50. Changing The Marketing Strategy
Marketing strategies determine the ________________ for a product and provide companies with direction for their advertising campaigns
E.g. a kid’s cereal that wants to appeal to a bigger target market will need to change its advertising to reflect this new direction, in an attempt to appeal to this expanded target market
Target Market

51. Changing The Distribution Process
A change to the distribution process should result in more _________, as more consumers will now ______ the product
Can also reach more customers by going to a trade show
A trade show is an exhibition where a large number of manufacturers and distributors of a particular type of product show their goods
Trade shows also allow contact to be made with retailers or distributors who want to see the product
Sales
See

52. Changing The Design
There are many reasons for changing the design of a product, including;
Improving its function
E.g. The Green Box – read paragraph 5 on page 354
Appealing to a new market segment
E.g. in an effort to appeal to kids, canned pasta uses popular characters such as Disney princesses, Scooby-Doo and Dora the Explorer

53. Changing The Manufacturing Process
Manufacturers must constantly review their production processes to;
Make their products better and/or
Make their products less expensive to produce
New processes and new machinery can improve efficiency and lower production costs
A small change could provide a wider variety of products for consumers
E.g. a potato chip company could offer more flavours by adding extra machines

54. Day 3 Assigned Work Students please complete the following;
Impact of Innovation Activity
Handout provided
Review Questions #8 & #10
On page 357 in your textbook