1. ENTREPRENEURSHIP Ms. McDermott WHAT IS AN ENTREPRENEUR?

2. Every Student Should Start a Business  Gain experience & credentials  Learn more about yourself – the stuff you can only learn from experience  You are your own boss  Grow personally

3. Pros vs. Cons of being an entrepreneur  You are your own boss  Choose the business that interests you  Creative  Very successful  Risky  Irregular income  Long hours  Alone in making decisions ProsCons

4. What is an entrepreneur?  An innovator who owns, operates, and takes the risk of a business venture by meeting an unmet need with a product or service.

5. Characteristics of an entrepreneur  Independent  Self confident  Determined  Goal-oriented  High standards for self  Creative  Act quickly  Up to date with technology

6. Take the survey  Do you have what it takes to be an entrepreneur? Make decisions Take risks Be directly affected by those decisions and risks Pursue personal dreams Passion

7. Opportunities  Manufacturing  Produce a product to sell  Wholesale  Sell a product to another business to sell  Retail  Sell products directly to consumer  Service  Sell a service directly to consumer

8. Other Opportunities  Agricultural  Fresh produce and other farm products  Mining and extracting business  Use natural resources to be consumed Any other ideas?

9. GREEN Opportunities  Environmentally friendly products  Passion behind the product or service  Protecting the earth and conserving its resources

10. Helping the economy  Less to lose & more willing and able to make changes  More creative and take more risks  American Recovery and Reinvestment Act of 2009  $30 billion in tax relief  $13 billion in loans, lines of credit, and equity capital  Increase the Small Business Administration (SBA) guarantee on loans  SBA to refinance existing loans  Provide more lending assistance

11. Risks of entrepreneurship  67% survive 2 years  44% survive four years More than ½ do not survive beyond 4 years

12. How to succeed?  Adequate capital  Meet customer needs  Knowledgeable  Business experience: planning, negotiating, manage finances  Reason for starting business MUST provide enough motivation to owner  Specific, Measurable, Attainable, Realistic, and Timely (SMART) GOALS

13. Examples of Successful small businesses  Starbucks  Founded 1971  How did it become so successful in the last 10 years? Over 40,000,000 people visit per week  What characteristics did Schultz utilize to become successful?

14. Research your own entrepreneur Prepare a 3 minute oral presentation on this person’s life and the characteristics utilized to become successful. Be sure to include:  Name of entrepreneur & business  Characteristics used to become successful  Product or service  Market served

15. Lesson 1.3 Ideas and Opportunities

16.  Opportunities – possibilities that arise from existing conditions.  Ideas – thoughts or concepts that come from creative thinking.

17. Looking for Ideas  Hobbies and Interests  Passionate  Past Experiences  How do past experiences help you succeed as an entrepreneur? (picture on page 18)  Discovery or Invention  Discover an unmet need  Invent something to meet the unmet need What are some products with the latest technology?

18. SBA on the Internet  Go to www.sba.govwww.sba.gov  Small business link  What information would be useful if you were starting a business?  Numerous links to start and manage a business  Free newsletters and publications

19. Investigate Opportunities  Utilize Resources  Internet, Library, government publications, Trade Shows, SBA website  Compare Different Opportunities  Is there a market for it? Will people buy it?  How much $ will it take to start? Can I borrow it?  Time consuming? Can I commit that much time?  Risks associated with this particular business? Risk of failure?  Do I have the background? Experience of current business owners?  Can I make enough profit?

20. Utilize your resources to find your business opportunities!

21. SMART Goals  S pecific: what? and how?  M easureable: progress  A ttainable: reachable  R ealistic: willing to commit to  T imely: timeframe to achieve it

22. Financial vs. Nonfinancial  Financial Goals  Any monetary goal Profit Paying off debts  Nonfinancial Goal  Any goal not having to do with money Personal satisfaction Independence Make a change

23. Mo Yang  Mail-order model trains, planes, and cars  Goal = $27,000 income  Purchase price $1, Sales price $19 $19 - $10 = $9 profit $27,000 / $9 = 3,000 models per year

24. Frank’s Customized Calendars  He can make a profit of $6 for every calendar sold. If he sells 250 a month, how much income will he generate in a year? 250 calendars/month x 12 months/year = 3,000 calendars x $6 profit per calendar = $18,000

25. Lesson 1.4 Problem Solving for Entrepreneurs

26. Problem-Solving Process A formal problem-solving model helps people solve problems in a logical manner. 1. Define the problem 2. Gather information 3. Identify various solutions 4. Evaluate alternatives and select the best option 5. Take action 6. Evaluate the action

27. Problem-Solving Process 1. Define the problem  Write it down, quantify it 2. Gather information  Company records, industry data, trade magazines  How have other companies solved this problem? 3. Identify various solutions  What is the best way for you?

28. Problem-Solving Process 4. Evaluate alternatives and select the best option  Rank the various solutions from best to worst 5. Take action  Implementation 6. Evaluate the action  The solution chosen may not have been the best one

29. Problem-Solving Process 1. Define the problem  Should Dan start a website design company? 2. Gather information  Self-assessment: strengths and weaknesses  Consider his skills, experience, and interests  Does he have the right characteristics?

30. 3. Identify various solutions 1. Work as employee utilizing his customer service skills and management experience. 2. Work as a website designer for another company to get more experience. 3. Pursue his interests in the food industry and open his own restaurant. 4. Start his own website design company. Problem-Solving Process

31. 4. Evaluate alternatives and select the best option  Highest to lowest: Option 4 (his own website design business) Option 2 (employee as web designer) Option 3 (his own restaurant business) Option 1 (employee utilizing customer service and management skills) 5. Take action  Dan starts to write his business plan

32. 6. Evaluate the action  After 6 months, Dan evaluates if he is achieving his financial and nonfinancial goals Problem-Solving Process

33. Problem-Solving Skills  Communicate  Clear and confident  Brainstorm  Fresh ideas  Learn from your mistakes  Unlikely to have instant success Colonel Sanders – KFC was not his first try