Chapter OneBusiness Growth & Prosperity

EntrepreneurshipEntrepreneur: Someone who starts,

manages, and owns a businessMost entrepreneurships start as small

businesses

Small Business: The term applied to any business that is operated by a one or a few individuals

Why Do People Become Entrepreneurs?

To leave the fast paced corporate environment

To be at home but still earn an income

To pursue a personal dream

What are Characteristics of a successful Entrepreneur?

Independent: They want to make their own decisions and do what they enjoy

Self-Confident: They must have the confidence to make choices alone and bounce back from poor decisions.

Determination/Perseverance: They must persist through hard times until goals are met.

Goal Oriented: They know what they want, and they are able to focus on achieving it.

Creative: They think of new ways to market their business, and are always looking for new solutions to problems.

Act Quickly: They are not afraid to make quick decisions when necessary in order to beat their competitors.

Motivated: They are able to set and achieve challenging goals

Necessary Skills Skill 1: Leadership

An ability to build consensus in the face of uncertainty.

Skill 2: Communication The ability to keep a clear and consistent

message. Skill 3: Decision Making

Or more importantly, knowing when to make a decision.

Skill 4: Being a Good Team Player Knowing when to trust and when to delegate.

Skill 5: Ability to Telescope To focus in on the details and then move back to

the bigger picture.

Assessing Your AptitudeDifferent jobs require different

aptitudes.Aptitude is the ability to learn a

particular kind of job.ie: Auto mechanics must possess aptitude

for solving mechanical problems. They also must be good with their hands.

Answering questions like this will help you identify the kinds of opportunities that might be good for you.

Pros and Cons of Entrepreneurship You are your own boss.

No one tells you what to do.

You choose a business that interests you.

You can be creative. You can make a lot of

money (money to the ceiling..endless bling).

It is risky. Going out of business or losing money (bye-bye bling).

Uncertain and irregular income. As the business goes so does the money.

You work long hours, no paid days off, and they sometimes work weekends and nights.

No one else to help you with decisions.

Growth of Small BusinessMost large businesses today began as

very small businesses. Because they supplied products and services consumers desired and because they were well managed, they became larger and larger.

For example, Subway began as a small business and now has over 13,000 restaurants around the country.

McDonalds and Holiday Inn started as small businesses

Growth of Franchise BusinessFranchise: is a legal agreement in

which a distributor buys the right to sell the franchising company’s product or service under the company’s name and trademark

Subways, Pizza Huts, Roy Rogers are all examples of franchises

Two parties must exist; the franchisor and the franchisee

Operating Your Business In order to run a business you have the

option of being one of two extremes or attempting to meet in the middle.

Businesses can operate effectively or efficiently.

EfficiencyWhat do we mean by efficiency?

Where a business has efficient production, it is operating at maximum output at minimum cost per unit of output. 

ExamplesOlive GardenMcDonaldsFord

Effectiveness What do we mean by effectiveness?

Getting the customer exactly what they want

Which Fits You?Effectiveness Efficiency

Focuses on the desired result Focuses on doing one's work in the correct manner

Seeks successes Seeks to avoid failure

End of task most important Means or resource to do a task most important

Oriented toward strategy and setting and keeping priorities

Oriented toward keeping the present system going

Uses a job description to define the work to be done and to set goals based on priorities

Performs each of the stated duties of a job description in the correct manner.

Attempts to find new ways to perform the task better

Concerned with keeping the status quo (things the way they are)

Anticipates change Reacts to change

Flexible when change requires it. Inflexible -- determined to carry out plans regardless of change.

Motivated toward growth Comfortable with keeping things as they are.

Constantly giving critical evaluation of a task

Prone to keeping record of what is going on.

Being A (Blank) StudentEffectiveness Efficiency

Getting work done as fast as possible

Taking as much time as necessary to get it done right

Pro’s and Con’sWhat would be the outcome of each

example (How would the teacher/student feel)?