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Ch. 3: Recognizing Opportunity
Understanding Entrepreneurial Trends
Current Trends Internet – Most Businesses have an
Online Component Service – Most Small Businesses
Service = Intangible things that businesses do for us that enhance our lives
Home Based – Approximately 53% of Small Businesses
Typically online
Understanding Entrepreneurial Trends
Current Trends Green – Promote Sustainability
Sustainability = Achieve Goals without compromising the ability of future generations to meet their own needs
Social Entrepreneurship – Improve Society
Identify social needs and recognize them as opportunities
May be Non-Profit
Understanding Entrepreneurial Trends
Current Trends Focus on Technology – Critical
component of Business: As a Product or used to Increase Productivity
Outsourcing – Anything and Everything
Contracting with other companies for services
Allows Focus on what You do BEST
5 Main Benefits
Understanding Entrepreneurial Trends
Current Trends Outsourcing – Anything and Everything
5 Main Benefits
Greater Efficiency, Saving Money & Time
Decreases Overhead Investment or Debt
Lowers Regulatory Compliance Burdens
Start New Projects Quickly
More Attractive to Investors – Money is Directed Towards Money-Making Activities
Understanding Entrepreneurial Trends
Current Trends Strategic Alliances – Partnerships
Alliance with Another Company to Supply You with a Product or Service
Corporate Ventures – Spin-Off Resources Provided to get the New
Venture Started
Often Becomes Independent Company
Understanding Entrepreneurial Trends
Recognizing Opportunity Creativity and Innovation
Connection, Discovery, Invention, Application
Idea vs Opportunity Opportunities are Ideas that Have
Commercial Profit Potential
Finding Unfulfilled Niches Niche = Small Specialized Market
Understanding Entrepreneurial Trends
Strategies for Thinking Creatively Practice Brainstorming – Thinking Freely Look at Ordinary Items in New Ways Find Creative Solutions to Common
Problems Connect Unrelated Items
Being Creative Can Be Challenging! Time, Unsupportive People, Lack of
Confidence, & Rigid Thinking
Understanding Entrepreneurial Trends
Creative Sources of Ideas Observe the World Around You Watch for Demographic Changes
Demographics = Personal Characteristics that Describe a Population
Be an Avid Reader Consider Your Own Experiences
Interests, Hobbies, Work
Consult Outside Sources Magazines, Trade Shows, Internet, &
Government
Starting Vs. Buying a Business
Personal Values and Goals Influenced by Family, Religion, Teachers,
Friends, Society, and Personal Experiences
What are Your Core Values?
Family Business Approximately 1/3 Survive to the 2nd
Generation – Why? Advantages = Trust and Togetherness Disadvantages = Can’t get Away and
Parents Not Viewing their Children as Effective Business People
Starting Vs. Buying a Business
Family Business Question to Ask:
Do I Have the Ability to Work for a Member of My Family
Do I Get a Long with the Family Members Involved
Do we Share the Same Goals – Business and Personal Life
Starting Vs. Buying a Business
Family Business Question to Ask:
Can we be clear and Specific About Expectations of Each other
Can I Leave Business Problems at Work
Can We Maintain a Positive Family Relationship
Starting Vs. Buying a Business
Buying an Existing Business Typically Less Risky Employs Hired and Trained Equipment in Place Customers
Goodwill – Customer Loyalty
Established Procedures Inventory
Starting Vs. Buying a Business
Buying an Existing Business Franchise
Legal Agreement to Begin a New Business in the Name of a Recognized Company
McDonalds
Franchisee Does Not have to Acquire All Risk
Pay Fees and Annual Royalties
Franchisor Can restrict how You Run the Business
Starting Vs. Buying a Business
Starting Your Own Business Questions to Ask
Do I have MotivationDoes the Business Align with My
Personality, Ability, Values, and Goals
Do I have Sufficient Knowledge of Basic Operations to Undertake the Business
Starting Vs. Buying a Business
Starting Your Own Business Questions to Ask
Do I have the Managerial AbilityDo I have the Right Partners to
Help MeDo I have Enough Financial
ResourcesAm I willing to Accept the Risk
Starting Vs. Buying a Business
Starting Your Own Business What You Must Do
Test the Feasibility: Are there Enough Customers in the Market to Make the Effort Worthwhile
Traditional Business or Online, or Both
Business Plan: Seek Capital, Partners, Employees
Secure Professional Advisors: Accountants, Lawyers
Starting Vs. Buying a Business
Starting Your Own Business What You Must Do
Hire Employees and Build Relationships with Suppliers
Purchase Equipment and Determine Distribution Channels
Create Awareness
