1. Your Great Adventure Exploring Your Options Copyright © 2011 Nelson Education Ltd.1-1 chapter 11 Prepared by Ron Knowles Algonquin College & Jennifer Rouse Barbeau Canadore College

2. Your Adventure begins... Chances are you will:  Own your own business, or  Work for a smaller firm. Copyright © 2011 Nelson Education Ltd.1-2 chapter 11 All small businesses need a plan

3. Chapter Overview Chapter 1 will:  Define entrepreneurship  Introduce the basic building blocks of a business plan  Help you discover your entrepreneurial bent  Help you explore your career options Copyright © 2011 Nelson Education Ltd.1-3 chapter 11

4. Learning Opportunities  Identify the role, skills, and characteristics of successful Canadian entrepreneurs.  Discover why you might want to become an entrepreneur.  Identify your entrepreneurial quotient.  Understand what it takes to be an entrepreneur and intrapreneur.  Understand the meaning of the terms micro and small business. Copyright © 2011 Nelson Education Ltd.1-4 chapter 11

5. Learning Opportunities  Use mind maps to help you decide on the life you want.  Discover what success means to you.  Understand the rationale for a business plan and list the main components.  Improve your research & info-gathering skills. Copyright © 2011 Nelson Education Ltd.1-5 chapter 11

6. CANADA = Entrepreneurial Hot Bed! Canada has twice the percentage of self-employed people as the U.S.! Most of our self-employed (60%) have a post-secondary education About 1/3 are serial entrepreneurs:  they own or have owned more than one business Copyright © 2011 Nelson Education Ltd.1-6

7. CANADA = Entrepreneurial Hot Bed! 40% of Canadians think being your own boss is the most rewarding career decision 80% of all entrepreneurs say that starting a business was their best career decision Copyright © 2011 Nelson Education Ltd.1-7

8. Small Business: The Numbers 2.6 million Canadians are self- employed 35% female vs. 65% male 98% of employer businesses have fewer than 100 employees 57% of employer businesses are micro businesses: 1 to 4 employees Copyright © 2011 Nelson Education Ltd.1-8

9. Small Business: The Numbers About 75% of small business employees work in the service sector Almost 1/2 of our labour force work for small enterprises Small business accounts for about 25% of our Gross Domestic Product (a key measure of economic production) Copyright © 2011 Nelson Education Ltd.1-9

10. Small Business Entrepreneurs Are... Fuel for private enterprise  Visionary self-starters  Passionate, Opportunistic & Persistent Agents of change:  Doers who see a market need & satisfy that need by translating it into a successful business Copyright © 2011 Nelson Education Ltd.1-10

11. The Down Side 55% of small business owners work 50+ hrs per week Only half took 1 week vacation in 3 years 90% say running a business is stressful Copyright © 2011 Nelson Education Ltd.1-11 But... Those who own their own businesses report highest life satisfaction.

12. Successful Entrepreneurs Are… Copyright © 2011 Nelson Education Ltd.1-12 Passionate Opportunistic Persistent Visionaries Goal-oriented Independent thinkers Idea generators People-oriented Sharing Doers Moderate risk-takers... Are you?

13. Entrepreneurial Thinking Table¹ Copyright © 2011 Nelson Education Ltd.1-13...Which kind of thinker are you? Typical Employee ThinkingMaster Entrepreneur® Thinking I need to...I want to... Thank God it’s Friday!It’s Friday already? Why?Why not? I stay in my comfort zone...I expand my comfort zone I need money to make moneyI create money with no money ¹ Source: www.MasterEntrepreneur.com, Copyright © 2006, 2009 Chris Castillo.

14. Rev Up Copyright © 2011 Nelson Education Ltd.1-14 Action Step 1: Organize your personal & business ideas in a 24/7 Adventure Notebook Action Step 2: Find out why you want to be an entrepreneur Action Step 3: Assess your interests & abilities

15. Start a business that does social good Agents of social change  doers with innovative solutions to society’s most pressing social challenges Copyright © 2011 Nelson Education Ltd.1-15 The Social Entrepreneur

16. Enter the Intrapreneur Down the road…  You may find yourself working for a large company or (better still) owning your own large company Both require that you foster entrepreneurship Copyright © 2011 Nelson Education Ltd.1-16

17. Enter the Intrapreneur Making change in a large company is called intrapreneurship. Intrapreneurs stimulate, empower, and reward employees to be entrepreneurial, and: – Find opportunities – Take risks – Brainstorm for new ideas – Set goals – Take ownership Copyright © 2011 Nelson Education Ltd.1-17

18. Inc. Yourself Copyright © 2011 Nelson Education Ltd.1-18 What does success means to you?  Think of yourself as a product you want to create.  Create your own mind map—one that depicts the life you want.  Discover what success means to you.  Complete Action Step 5

19. Mind Mapping Idea Generator: Mind Mapping Copyright © 2011 Nelson Education Ltd.1-19 Mind map:  an idea-generating sketch  circled words connected by lines to form units  doodling to generate ideas.

20. Mind Mapping Idea Generator: Mind Mapping Copyright © 2011 Nelson Education Ltd.1-20 Create your mind map: 1. Write your goals in the centre of a page. 2. Circle key words. 3. Use lines to connect themes. 4. Create a spider web of opportunity!

21. What is Small Business? Copyright © 2011 Nelson Education Ltd.1-21  An independently owned & operated firm, not dominant in its field  Any venture with spirit  Any business you want to start  Any idea you want to bring to the marketplace  Employer of 1 to 20 employees Like 85% of businesses in Canada

22. Your Chances of Success  Some small businesses fail  Slightly more than 80% of small businesses survive their first year  On average, a company will be in business about 6 years  Only about 30% make it for 10 years  A business plan & research helps you beat the odds Copyright © 2011 Nelson Education Ltd.1-22

23. What is a Business Plan? Copyright © 2011 Nelson Education Ltd.1-23  A written summary of: Business goals Resources needed Plan to organize resources to meet personal & business objectives.  A blueprint or road-map for operating your business start-up & measuring progress.

24. A Business Plan: A Business Plan: Why Bother? Copyright © 2011 Nelson Education Ltd.1-24 A business plan is important because it: Lays out goals Provides an organizing tool Acts as a financial guide Helps obtain advice Helps secure investment.

25. the Business Plan Broad Components of the Business Plan Cover Sheet Table of Contents Executive Summary or Statement of Purpose Description of the Business:  The product or service  The market and the target customer  The competition  Marketing strategy  Location  Management and form of ownership  Personnel Financial Section:  Projected cash flow (monthly, first year)  Projected income statement  Projected balance sheet Copyright © 2011 Nelson Education Ltd.1-25

26. Conducting Research Copyright © 2011 Nelson Education Ltd.1-26 Market Research Collection and analysis of data pertinent to an existing or potential market Three Main Research Approaches 1. Primary Research 2. New-Eyes Research 3. Secondary Research

27. Copyright © 2011 Nelson Education Ltd.1-27 1.Primary Research Involves interacting with the world through interviews, observation, etc. (Action Step 6) 2. “New-Eyes” Research Involves the use of intuition and observation to learn things about the marketplace (Action Step 7) 3.Secondary Research Involves referring to someone else’s primary research (Action Step 8) 3 Research Approaches

28. Business Plan Business Plan Building Block Chapter 1 helps you inspire confidence in money lenders by identifying:  Where you are now Strengths & weaknesses Entrepreneurial aptitudes & skills  Where you are going Goals, passion & commitment Copyright © 2011 Nelson Education Ltd.1-28

29. Your Business Plan Checklist for Your Business Plan Copyright © 2011 Nelson Education Ltd.1-29  Are you organized? Do you have a central deposit for all your ideas?  Do you have what it takes to be an entrepreneur?  Have you assessed your interests, abilities, and weaknesses as they relate to owning a business?  Have you assessed your past accomplishments and shortcomings?  Do you have a list and a plan of new skills you will have to work on?

30. Your Business Plan Checklist for Your Business Plan Copyright © 2011 Nelson Education Ltd.1-30  Is your family or those you live with “on board”?  Are you prepared to take the time to do the research to write a business plan?  Have you interviewed entrepreneurs to see what it is really like to be in business for yourself?  Do you have any business ideas which you are passionate about?

31. Garrison Guitars, Part I Chris Griffiths has POP: he’s passionate, opportunity-seeking and persistent. Answer the Chapter 1 case study questions to learn:  That mind mapping can help you get new ideas  The entrepreneurial skills & personality traits that helped Chris Garrison launch his successful invention  How Chris overcame major roadblocks  How Chris used primary and “new eyes” research  How a business plan helped Chris launch his successful business. Copyright © 2011 Nelson Education Ltd.1-31 Case Study