1. ****** 1 1-1 December, 2011 ** Entrepreneurship and Starting A Home Based Business * **

2. ****** 2 Guess Which Company? He was selling baking soda & decided to entice customers by putting in two packages of chewing gum with each sale. The excitement over the gum started him thinking. Two Seattle teenagers pooled their money & came up with $100. They started delivering messages & parcels for local merchants. Though he didnt graduate from college, he found out college students eat a lot of pizza. He started his first pizzeria with $900 near a campus with a promise of 3- minute delivery.

3. ****** 3 Be an Entrepreneur Definition Why take the entrepreneurial challenge? Opportunity Profit Independence Challenge

4. ****** 4 Who Starts New Businesses? 18 - 24 8% 25 - 34 71% 35 - 44 13% 45 - 54 6% 55+ 2% AGE AT START-UP

5. ****** 5 Entrepreneurial Attributes Self-Directed & Self- Disciplined Self-Nurturing Action-Oriented Highly Energetic Tolerant of Uncertainty

6. ****** 6 Entrepreneurship Entrepreneurial Teams Micropreneurs and Home-Based Businesses Web-Based Businesses Intrapreneurs

7. ****** 7 Reasons for Growth of Home-Based Businesses Technology Downsizing Attitudes Tax Advantages

8. ****** 8 Home-Based Business Challenges New Customers Time Management Work vs. Family City Ordinances Risk Focus Find Opportunity Results vs. Routine Profit vs. Paycheck New Ideas Long Term vs. Short Term

9. ****** 9 Most Common Types of Home-Based Businesses Source: Independent Insurance Agents of America

10. ****** 10 Government & Entrepreneurship Immigration Act of 1990- Investor Visa Enterprise Zones Incubators

11. ****** 11 1. Utah 2. Nevada 3. Washington 4. Florida 5. Colorado 6. Washington D.C. 7. Maryland 8. Georgia 9. Tennessee 10. Alaska Source: Investor Business Daily, June 24, 2004 Top Ten States Where Businesses Have Started

12. ****** 12 Top Ten States Where Businesses Have Closed 1. Utah 2. Washington 3. New Mexico 4. Nevada 5. Idaho 6. Missouri 7. Arizona 8. Vermont 9. Georgia 10. California Source: Investor Business Daily, June 24, 2004

13. ****** 13 What is Small Business? Independently Owned Not Dominant in Its Field Meet Certain Standards of Size (Employees, Annual Receipts)

14. ****** 14 U.S. Small Businesses 20 Million Full/Part-time Businesses Account for More Than 50% of Gross Domestic Product (GDP) Jobs 80% of Americans 1 st job is in small business 75% of new jobs are created by small businesses Minority-owned Businesses Growing Rapidly

15. ****** 15 Business Ownership by Gender Source: USA Today

16. ****** 16 Female Owners Top Industries SOURCE: USA Today

17. ****** 17 Small Business – Major Causes of Failure Plunging in without first testing Under/over pricing Too little capital Little/no experience Borrowing money without planning Trying to do too much with too little Buying too much on credit Expanding credit too freely and rapidly Incomplete and/or inaccurate records Not understanding business cycles Forgetting about taxes, insurances, etc. Owner working or not, according to whim

18. ****** 18 Small Business – Situations for Success Personal attention Products not easily made by mass production Sales are not large enough for a large firm Unattractive neighborhood Franchising Paying attention to new competitors The business is in a growth industry

19. ****** 19 Learning about Small Business Operations Learn from Others Get Experience Take Over a Successful Firm

20. ****** 20 Where Did They Start? Source: World Features Syndicate HallmarkYMCA room Williams-SonomaAbandoned Hardware Store Estee LauderVacant Former Restaurant Walt DisneyCreated Mickey in a Garage

21. ****** 21 Early Sales of Well-Known Companies Johnson & Johnson$3,000 Worth of Band-Aids 1 st Year Cyrus McCormickSold No Reapers 1 st 10 Years Subway312 Sandwiches 1 st Day Burtons Snowboards Sold One 1 st Year BoseSold 40 Speakers 1 st Year (today #1 in market) Source: World Features Syndicate

22. ****** 22 Managing a Small Business Business Plan Adequate Funding Lenders/Investors Angels Venture Capitalists Professional Advice/Help SBA and SBIC Program Lawyers, Loan Officers, Insurance Agents SCORE Local College/universities Know Your Customer Manage Human Resources Keep Good Records

23. ****** 23 Small Business Collaborators Small Business Administration (SBA) Microloan program SBICs SBDCs Service Corps of Retired Executives (SCORE)

24. ****** 24 Small Business Strategies Examine Marketing & ID Areas for Growth Profile Best Customers & Market to Similar Prospects Invest in Sales Training & Technology Refresh Business Perspective With Outside Views Streamline Business & Eliminate Waste

25. ****** 25 Small Business & International Prospects Positives 1. World Market 2. Absorb Excess Inventory 3. Soften U.S. Downturns 4. Extend Product Life Negatives 1. Financing Difficult 2. How to Get Started? 3. Lack of Cultural Understanding 4. Paperwork

26. ****** 26 International Small Business Advantages Deal With Individuals Begin Shipping Orders Faster Variety of Suppliers Professional Service with Undivided Attention Information Dept. of Commerce- www.bxa.doc.gov www.bxa.doc.gov SBA- International- www.sba.gov/hotlist/in ternat.html www.sba.gov/hotlist/in ternat.html