1. THE FACE OF AN ENTREPRENEUR!

2. ENTREPRENEURSHIP 30 (C)

3. https://www.youtube.com/watch?v=pem0ZSsMQVA

4. https://www.youtube.com/watch?v=BF91vCbzXTw

5. OBJECTIVES: Two Types of Business Characteristics of Entrepreneurial Ventures Form of Ownership Choices in Starting a Business Definitions Indian Act – Treaties – Business and Agriculture How to protect your ideas? Regulations/Law/Intellectual Property Young Entrepreneurs Resources

6. CHARACTERISTICS OF ENTREPRENEURIAL VENTURES 1.Profit or Not-For-Profit 2.Service - Goods 3.Large Scale/Small Scale 4.Physical/Virtual 5.Local – National - International 6.Note: GNP (gross national product) and Trade Agreements (NAFTA, GATT) Handout

8. PROFIT/NON-PROFIT Profit Ventures – MAKE MONEY  A commercial venture is created b/c of a desire to provide a product or service to the public in exchange for a monetary benefit (profit).  Profit – is the value that remains after all of the expenses (cost of purchasing goods, salaries, rent, utilities, supplies) of running the business have been paid.  Revenue – expense = net profit or loss  Most entrepreneurs make their living off of their venture.  Have to pay ee’s, however, owner’s take home pay depends on the success of the venture that month.

9. Non-Profit – OFFER SOMETHING TO SOCIETY  In the business to raising money for other people or causes.  Any surplus in funds after expenses will be used for the benefit of others, and not to increase the asset value of the owners, there are no owners in the sense of profit takers  Typically run by community groups, religious organizations, governments, and other civic-minded people.  Supported by volunteers (cuts down on costs) – food bank  Ex: international non-profit – International Red Cross

10. FOR-PROFIT American Eagle Sport Chek Canadian Tire Black’s Cameras Dell Computers Radio Shack General Motors Donegan’s Haulage Pizza Hut Drains Are Us Plumbing NOT-FOR-PROFIT Salvation Army Big Sisters United Way Boy Scouts of Canada Rotary Club Arthritis Society Girl Guides Cancer Society Canadian Red Cross Canadian Diabetes Association

12. SERVICE/GOOD PROVISION Service Provision (intangible, can’t see the result)  No good or things just a service, typically for a fee  Specialized areas – service then fee  Include:  Transportation (STC), house cleaning, dry cleaning, real estate, custom combining, autobody work, interior design, lawyers, and accountants are just a few.

13. EXAMPLES: Mobile pet grooming Diaper delivery Mobile locksmith Golf club cleaning Adventure tours Self defence instructor Pet sitting Personal chef Resume and cover letter service Tax consultant Mystery shopping Professional organizer Tutoring Packing and unpacking service Bookkeeping Language translator Limousine service Catering Welcoming service

14. Good Provision (tangible – can touch)  Ventures that operate in the retail/wholesale sector are in the business of supplying goods to the public, or to other retailers.  Retailers sell directly to the public.  Ex: gas stations, corner store, department stores, specialty stores  Wholesalers sell to retailers  Take out contracts with producers to purchase their produce, wholesalers then sell the produce to the retailers for a profit.  “middleman”  In many situations the company owns the wholesaler and the retail enterprise.

15. Manufacturing: The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications. Manufacturing commonly employs a man-machine setup with division of labor in a large scale production.processconvertingraw materialscomponentspartsfinished goodscustomer'sexpectationsspecificationsManufacturingsetupdivision of laborscaleproduction

16. ServicesGoods Bob’s Auto ServiceToyota Corp. Hair ExpressionBoh’s Cycle and Sports Dr. BraunLocal Clothing Stores IntrexMicrosoft Corp. Tax Team General Electric Ltd. Elite Hair SchoolSport Check Aspen DentalPrairie Plains Agro

17. Size  Usually start small and grow larger Physical/Virtual  Bricks and Mortar – actually have a store for people to visit  E-Commerce – The business is conducted online  Many do both

18. LOCAL /PROVINCIAL /NATIONAL/INTERNATIONAL

19. Operate on three geographic scales – becomes more complex as the area expands Local = 1 community  Exist in your school, local community, larger urban centres nearby – gives the town or city it’s personality and strength  Most basic venture, restricted to a well-defined market area (rural grocery store, family farms – total income for family), urban centre has an increased population base, more possibilities to expand, start operating a chain of video outlets or pizza stores in the city Provincial = within 1 province  Provincial business, franchise, culture, etc.  Early example – Tim Horton’s (province?)

20. National = includes several provinces  Typically the national retail chains, or nationally based professional firms. (The Bay, Zellers, Safeway, Superstore, Deliotte Touché, Price Waterhouse – accounting firms)  They all usually start with one store, or idea  Ex: Timothy Eaton Multinational/International = includes world  Globalization – has enabled businesses compete internationally  Mostly due to the ease of doing business over the internet  Very powerful, represent money, capital, and even political power.  Large and have the ability to influence  Becoming more of an option than before with globalization and technology  Ex: Exxon Corporation: oil and gas  Ex: manufacturing pulp and paper, tobacco, etc.

21. CANADIAN LOCAL, NATIONAL, INTERNATIONAL, BUSINESSES LOCAL – (list some local business) NATIONAL BUSINESSES  Canadian Tire-Radio Shack  Root’s-Hudson Bay  Canada Trust-Intrawest INTERNATIONAL BUSINESSES  NHL-CIBC  McCain’s Foods-Bombardier Corp.  Tim Horton’s-Nortel

22. LIST THREE ADVANTAGES AND THREE DISADVANTAGES TO SELLING A PRODUCT IN EACH TYPE OF MARKET. MarketAdvantagesDisadvantages Local Provincial National International

23. MarketAdvantagesDisadvantages Local - fast orders & sales - low shipping costs -personal knowledge of customers -You can control what happens with your company -You can be more flexible, for example, restaurant - you put more of a personal touch on the item - limited markets - may limit profits - is a lot of room for expansion (costly) - reach fewer people

24. MarketAdvantagesDisadvantages Provincial - larger than local market - shipping costs are still reasonable - no tariffs, duties -Can own more than one branch - higher costs for promotion and shipping than for local - more risk taking than local -

25. MarketAdvantagesDisadvantages National - lots of customers (all of Canada) - potential for higher profits - more advertisements - higher production costs to meet demand - high shipping and distribution costs - more legal problems (more chance of getting sued) -Need more rules (less flexible) to keep uniformity -More government regulations to follow

26. MarketAdvantagesDisadvantages International - very large market - potential for very high profits - well known stores or products (Coke, Walmart) - may have to deal with tariffs - packaging and advertising vary from one country to another - high shipping costs -possible security problems -Have to deal with language translations

27. STARTING A BUSINESS APPROACHES TO ENTREPRENEURSHIP WHAT KIND OF BUSINESS SHOULD IT BE ???

28. https://www.youtube.com/watch?v=Bv1MSHM-kzM#t=23

29. TYPES OF BUSINESS OWNERSHIP/FORMS OF BUSINESS OWNERSHIP Sole Proprietorship Partnership Corporation(private, public, crown) Cooperative Franchise

30. HANDOUT - ASSIGNMENT Forms of Ownership Establishing a Business Create a note on each of the main forms of business ownership listed on the chart provided.  Pick 3-4 major characteristics of each form of business  Describe and explain these advantages and disadvantages A Template is provided to you on the wiki site. We will take this up at the beginning of class tomorrow.

31. CHOICES IN STARTING A BUSINESS 1.Start the business from nothing (good/service/invention/innovation) 2.Buy an existing business 3.Modify an existing business 4.Buy a Franchise

32. CREATE THE FOLLOWING TABLE. LIST AS MANY ADV/DISADV AS POSSIBLE. ChoiceAdvantagesDisadvantages Start a business from scratch Buy an existing business Modify an existing business Buy a franchise

33. ChoiceAdvantagesDisadvantages Start a business from scratch -you have a lot of development options - able to personalize your company - hire -first to market -less competition -more potential for earnings -no tested model (trial and error) - lack of experience - trouble getting money - high cost of borrowing -high risk -can be copied

34. ChoiceAdvantagesDisadvantages Buy an existing business -don’t have to create it (existing model) - lower risk (you have a sense you will succeed) - established name (your are buying the reputation) -Already have clients -Less control (manager rather than entrepreneur) – Cost (higher price) - Ideas – already there - Might need to keep the same employees - Harder to change the co.

35. ChoiceAdvantagesDisadvantages Modify an existing business (tweaked – in order to fulfill needs and wants of a specific market) -Less work than starting from scratch - Less risk -Sound business model -Knowledge of your market -Established product/idea -Some of the customers might not like the modifications and leave (no guarantees) - High cost -Legal concerns -Change might not be “big” enough for customers to change

36. ChoiceAdvantagesDisadvantages Buy a franchise-The name is established - They give you the tools and procedures to run the co. - Better chance for success - National advertising - Business plan is set -You have to follow their rules - Less creativity allowed - Expensive

37. ChoiceAdvantagesDisadvantages Start a business from scratch -allow for development of your own idea -freedom to match market needs -freedom to set own goals -high risk of failure -difficult to get financing and support -lack of experience to learn from

38. ChoiceAdvantagesDisadvantages Buy an existing business -potential for growth -financial records and past success make it easier to get financing -lower risk than starting from scratch -customers and suppliers are in place -little opportunity for creativity -expensive -may lose some customers when the business changes hands

39. ChoiceAdvantagesDisadvantages Modify an existing business -opportunity for creativity and freedom combined with security of past success -expensive -may lose customers -more risk of failure

40. ChoiceAdvantagesDisadvantages Buy a franchise-Receive training, advice, support, everything from head office - Can take advantage of company advertising - Expensive - Must follow the exact procedures outlined by head office - Must buy all supplies, product from head office

41. DEFINITIONS – YOU NEED TO KNOW

42. Globalization: make, sell, trade around the globe

43. Gross National Product (GNP) the total monetary value of all the goods and services produced in Canada in one year

44. Trade Agreements: GATTGeneral Agreement on Tariffs & Trade NAFTA North American Free Trade Agreement

45. Downsizing is the “conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness”

46. Rightsizing to reduce (as a workforce) to an optimal size

47. Outsourcing means taking some specific, but limited, function that your company was doing in-house – and having another company perform that exact same function for you and then reintegrating their work back into your overall operation.

48. Offshoring is when a company takes one of its factories that it is operating here and moves the whole factor offshore – to another country

49. EQUITY/OPPORTUNITIES

50. INDIAN POLICY – EARLY RESERVE PERIOD Does everyone have a right to run their own business? Should they be restricted based on their ethic origin? Dark Spot on Saskatchewan History: -Indian Policy and Early Reserve Period -Two articles -http://www.ammsa.com/publications/windspeaker/indian-act-permit-control-culturehttp://www.ammsa.com/publications/windspeaker/indian-act-permit-control-culture -http://esask.uregina.ca/entry/indian_policy_and_the_early_reserve_period.htmlhttp://esask.uregina.ca/entry/indian_policy_and_the_early_reserve_period.html

52. AGRICULTURE/ABORIGINAL AND NON ABORIGINAL FARMERS

53. https://www.youtube.com/watch?v=VH35Iz9veM0

54. HOW DO YOU PROTECT YOUR IDEAS? Once you’ve come up with an idea, or invention, or an innovation, there are a number of ways to protect it so potential competitors can’t take advantage of it. In Canada there are several ways to protect your intellectual property.

55. DEFINITIONS Patents  Is a grant made by the government that gives the creator of an invention the sole right to make, use and sell the invention for a set period of time. Copyrights  Protects literacy works, musical works, artistic works, and software. Copyright to any original work they have created unless they were hired or employed to create it.  Copyright act – can’t use without the persons permission Trademarks Industrial Design Act Integrated Circuit Topography Act HANDOUT

56. YOUNG ENTREPRENEURS

57. CHALLENGES/OPPORTUNITIES FOR YOUNG ENTREPRENEURS http://www.inc.com/richard-branson/200-funded-virgin.html

58. YOUNG VS. ADULT What types of challenges do young entrepreneurs face that are different from adult entrepreneurs? Work with a partner and come up with a list of challenges that may face young entrepreneurs

59. YOUNG VS. ADULT Little or no business experience Little life experience May have less education Little or no capital May face discrimination due to age May lack maturity to operate a business May lack business contacts Self confidence Peer pressure

60. THE IMPORTANCE OF SELF-CONFIDENCE Self-confidence is essential to the development of self-control, or inner-control. Those who lack self-confidence often avoid exercising inner control, which means, while they avoid failure, they are also avoiding success It is very difficult for other people to trust and have confidence in someone when that same person does not have confidence in themselves.

61. HOW DO YOU GAIN SELF-CONFIDENCE? By having successes By being good at something By doing what you love to do Read books about successful people Challenge yourself Tackle your fears (on the other side of your fears is your greatest growth) Be positive Have initiative Establish goals

62. BENEFITS OF BEING YOUNG What are some of the benefits of being a young entrepreneur? More energy/Hard working Will not take “no” for an answer Resourceful Creative/Full of ideas Aware of popular culture and changing trends

63. WHAT DOES AN ENTREPRENEUR DO? Ideas and opportunities/aware/outside the box Identify needs for products or services Generate ideas on how to provide the needed products or services Evaluate whether an of the ideas present a venture opportunity Evaluate ideas and opportunities for development of a venture Develop a plan Implement the plan

64. RESOURCES/AGENCIES