EntrepreneurshipEntrepreneurship

Is it for you???Is it for you???

EntrepreneursEntrepreneurs

Someone who takes a risk to start a Someone who takes a risk to start a businessbusiness

The process of owning, operating, and The process of owning, operating, and establishing a business.establishing a business.

Differences between and Differences between and entrepreneur and manager????entrepreneur and manager???? A manager does not assume all of the risk A manager does not assume all of the risk

like an ownerlike an owner A manager is limited in his decision-A manager is limited in his decision-

makingmaking The owner keeps all of the profits – the The owner keeps all of the profits – the

manager gets a salarymanager gets a salary

Characteristics of entrepreneursCharacteristics of entrepreneurs

Creative thinkersCreative thinkers IndependentIndependent PersistentPersistent Self-confidentSelf-confident OrganizedOrganized Good decision-makersGood decision-makers Open-minded/flexibleOpen-minded/flexible Like challengesLike challenges

Ways to determine if Ways to determine if entrepreneurship is right for entrepreneurship is right for

you?you?Assess your interestsAssess your interestsAssess your aptitudeAssess your aptitudeAssess the advantages and Assess the advantages and

disadvantages of being an disadvantages of being an entrepreneurentrepreneur

Advantages of entrepreneurship?Advantages of entrepreneurship?

Are your own bossAre your own bossChoose a business that interests Choose a business that interests

youyouCan be creativeCan be creativePotential to make lots of Potential to make lots of

Disadvantages Disadvantages

Entrepreneurship is riskyEntrepreneurship is risky Have uncertain and irregular incomesHave uncertain and irregular incomes Work long hoursWork long hours Must make all decisions by themselvesMust make all decisions by themselves

Successful EntrepreneursSuccessful Entrepreneurs Do a self assessment – evaluate your Do a self assessment – evaluate your

strengths and weaknessesstrengths and weaknesses Investigate the opportunitiesInvestigate the opportunities

Is there a market?Is there a market? How many hours will I work?How many hours will I work? Do I have the right background?Do I have the right background?

Set goalsSet goals Financial – how much money make, how long Financial – how much money make, how long

to make a profitto make a profit Non-financial – personal satisfaction, Non-financial – personal satisfaction,

independenceindependence

Ways to obtain financingWays to obtain financing

BanksBanks Credit UnionsCredit Unions Loan agenciesLoan agencies FriendsFriends FamilyFamily

Offer financing for your Offer financing for your customerscustomers

Credit cardsCredit cards LayawayLayaway Outside finance companiesOutside finance companies

Professional Development: Professional Development: Updates in your fieldUpdates in your field

SeminarsSeminarsTrainingsTrainingsTrade showsTrade showsConferencesConferencesOnline classesOnline classes

Writing SkillsWriting Skills

Business letters - A more formal letter with Business letters - A more formal letter with business contentbusiness content TypedTyped No grammar errorsNo grammar errors Always put dateAlways put date Use titles and names properly: Mrs., Mr. etc.Use titles and names properly: Mrs., Mr. etc. Be positive and directBe positive and direct Use appropriate closings: sincerely, cordially, etc. Use appropriate closings: sincerely, cordially, etc. Parts of a Business LetterParts of a Business Letter

Memorandums (Memos)Memorandums (Memos) Short, written form of business communication that has Short, written form of business communication that has

a set formata set format To: All studentsTo: All students From: Debbie HarrisFrom: Debbie Harris Date: September 22, 201Date: September 22, 201 Re: Chicago Re: Chicago

http://www2.davidson.k12.nc.us/ndm/kb_curr/BigRocks/MarsBigRocks/BigRockMemohttp://www2.davidson.k12.nc.us/ndm/kb_curr/BigRocks/MarsBigRocks/BigRockMemo_ReviewMarsDay3AnsKey.pdf_ReviewMarsDay3AnsKey.pdf

The Chicago trip will be.......(body)The Chicago trip will be.......(body)

Interoffice memos – memo from one person in a company to Interoffice memos – memo from one person in a company to another in the company (hand delivered, faxed, emailed , etc.)another in the company (hand delivered, faxed, emailed , etc.)

Speaking SkillsSpeaking Skills Verbal: When on the telephoneVerbal: When on the telephone

Speak Clearly and directlySpeak Clearly and directly Be cheerfulBe cheerful Be politeBe polite Think about what you are going to sayThink about what you are going to say Take notesTake notes

Non-verbal skills/ business Non-verbal skills/ business presentationspresentations

Non-verbal: Your body languageNon-verbal: Your body language Facial expressionsFacial expressions Hand movements Hand movements Position of bodyPosition of body Sound of voiceSound of voice

Presentations: When speaking in front of a Presentations: When speaking in front of a groupgroup Loud enough and clearlyLoud enough and clearly Good postureGood posture Eye Contact with crowdEye Contact with crowd

Problem – Solving SkillsProblem – Solving Skills Define the problem: sales are downDefine the problem: sales are down Gather information: surveys, focus groups, Gather information: surveys, focus groups,

employee feedbackemployee feedback Identify various solutions – change product mixIdentify various solutions – change product mix Evaluate alternatives and select best options: Evaluate alternatives and select best options:

Choose more variety of jeansChoose more variety of jeans Take action: Buy more jeans targeted to teensTake action: Buy more jeans targeted to teens Evaluate the action: Look at sales Evaluate the action: Look at sales

afterwards/profitafterwards/profit

Technologies in businessTechnologies in business

E-mail - messages sent via the Internet E-mail - messages sent via the Internet (typically not as formal)(typically not as formal)

Fax machine – send hard copies to other Fax machine – send hard copies to other fax machines (usually put a cover sheet fax machines (usually put a cover sheet with it)with it)

Voice mail – Leave a message that is Voice mail – Leave a message that is recorded for the recipientrecorded for the recipient

Cell phone – used for calls when out of the Cell phone – used for calls when out of the officeoffice

Types of businessesTypes of businesses

Manufacturers – produce the products Manufacturers – produce the products they sell (Gatormade Trailers, Toyota, they sell (Gatormade Trailers, Toyota, etc.)etc.)

Wholesalers – Store and sell products to Wholesalers – Store and sell products to people other than final customerpeople other than final customer Modern Vending, Somerset Foods)Modern Vending, Somerset Foods)

Types of businessesTypes of businesses

Retailers – sell products directly to the Retailers – sell products directly to the people who use or consume thempeople who use or consume them Kroger, Kmart, Speedway, AutozoneKroger, Kmart, Speedway, Autozone

Service Business – Sell services rather Service Business – Sell services rather than productsthan products Hairdressers, car washes, repair shops, hotelsHairdressers, car washes, repair shops, hotels

Types of OwnershipTypes of Ownership Sole Proprietorship – A business owned by one person exclusively Sole Proprietorship – A business owned by one person exclusively

(most common form)(most common form) Advantages: Advantages:

• Government has little controlGovernment has little control• You are the main bossYou are the main boss• Keep all of the profitsKeep all of the profits

Disadvantages:Disadvantages:• You have all of the liability (can take your personal assets)You have all of the liability (can take your personal assets)• You work long hoursYou work long hours• You are the only one contributing moneYou are the only one contributing mone

• Government has little controlGovernment has little control• You are the main bossYou are the main boss• Keep all of the profitsKeep all of the profits

PartnershipPartnership Partnership – a business owned by two or Partnership – a business owned by two or

more peoplemore people Advantages:Advantages:

• Share responsibilitiesShare responsibilities• Have other income besides your ownHave other income besides your own• Share lossesShare losses• Not a lot of government regulationNot a lot of government regulation

Disadvantages:Disadvantages:• Share the profitsShare the profits• Are legally liable for the errors of the partnerAre legally liable for the errors of the partner

CorporationCorporation

Corporation – Is treated independently of its Corporation – Is treated independently of its owners and has the legal rights of a personowners and has the legal rights of a person Advantages:Advantages:

• Can raise capital by selling stockCan raise capital by selling stock

• Stockholders are only responsible for the money Stockholders are only responsible for the money invested (liability is less)invested (liability is less)

Disadvantages:Disadvantages:• High government regulationHigh government regulation

• Taxed higher (income is taxed twiceTaxed higher (income is taxed twice

• Costly to set upCostly to set up

FranchiseFranchise

Franchise – legal agreement that gives an Franchise – legal agreement that gives an individual the right to market a company’s individual the right to market a company’s product in a particular areaproduct in a particular area

Franchisor – person who offers franchise for Franchisor – person who offers franchise for purchasepurchase

Franchisee – person who buys franchise Franchisee – person who buys franchise agreementagreement McDonaldsMcDonalds Wendyshttp://company.papajohns.com/Wendyshttp://company.papajohns.com/

franchise_opps/pdf/2010_Dev_Incentive.pdffranchise_opps/pdf/2010_Dev_Incentive.pdf

4 main functions of a business4 main functions of a business Business/Management/Business/Management/

Entrepreneurship – Someone to Entrepreneurship – Someone to manage/run the businessmanage/run the business

Communication and Interpersonal skills – Communication and Interpersonal skills – verbal and nonverbal communicationverbal and nonverbal communication

Economics – how the economy affects Economics – how the economy affects your businessyour business

Professional Development – keeping Professional Development – keeping updated in your fieldupdated in your field

Social ResponsibilitiesSocial Responsibilities

Follow environmental laws (EPA)Follow environmental laws (EPA) Conservation and recycling/Green Conservation and recycling/Green

marketingmarketing Business ethics – fair, right, and honest Business ethics – fair, right, and honest

practicespractices Participate in community service activitiesParticipate in community service activities

Services that our Government Services that our Government providesprovides

Supporter of businessSupporter of business Provides disaster relief after a natural disaster. Provides disaster relief after a natural disaster.

Example: Hurricane KatrinaExample: Hurricane Katrina Run the Small Business Administration (SBA) – Run the Small Business Administration (SBA) –

which provides counseling and educational which provides counseling and educational materials to both businesses and home ownersmaterials to both businesses and home owners

http://www.sba.gov/http://www.sba.gov/ To encourage global business activity by To encourage global business activity by

establishing trade alliances with other countriesestablishing trade alliances with other countries Example: Selling Nike shoes to Example: Selling Nike shoes to

customers in Africacustomers in Africa

Regulator of Businesses/Consumer and Regulator of Businesses/Consumer and worker Protectionworker Protection

Consumer and worker protection:Consumer and worker protection: OSHA – protects against unsafe OSHA – protects against unsafe

conditionsconditions* Unhealthy chemicals* Unhealthy chemicals

* Unsafe equipment* Unsafe equipment

Food and Drug Administration(FDA): Food and Drug Administration(FDA): Protects consumers against bad food Protects consumers against bad food and drugsand drugs

Other regulationsOther regulations

Equal Employment Opportunity Equal Employment Opportunity Commission – protects against Commission – protects against discrimination in hiring due to age, discrimination in hiring due to age, gender, race, religion, disability, gender, race, religion, disability, national originnational origin

Regulation (cont.)Regulation (cont.) Environmental Protection Agency Environmental Protection Agency

(EPA) – protects against damage to (EPA) – protects against damage to the environmentthe environment

Securities Exchange Commission – Securities Exchange Commission – regulates the sale of stocks and bondsregulates the sale of stocks and bonds

Government’s role as a Government’s role as a CompetitorCompetitor

U.S. Post office competes with UPS U.S. Post office competes with UPS and Fed Exand Fed Ex

Tennessee Valley Authority (TVA) – Tennessee Valley Authority (TVA) – electric companyelectric company

Amtrak – competes with other forms Amtrak – competes with other forms of transportation like subways, of transportation like subways, busses, taxisbusses, taxis

Consumer Protection AgenciesConsumer Protection Agencies

Federal Trade Commission – investigation of Federal Trade Commission – investigation of deceptive and misleading business practices deceptive and misleading business practices like false advertising, prevents monopolies, etc.like false advertising, prevents monopolies, etc.

Better Business Bureau - Better Business Bureau - Consumer and Business Reviews, Reports, Ratings, Complaints and Accredited Business Listings http://www.bbb.org/

Consumer Protection AgenciesConsumer Protection Agencies

Consumer Product Safety Commission – Consumer Product Safety Commission – Home Page | cpsc.govHome Page | cpsc.gov

Protect "against unreasonable risks of injuries Protect "against unreasonable risks of injuries associated with consumer products." associated with consumer products."

Recalls/hazardsRecalls/hazards

Seven Marketing FunctionsSeven Marketing Functions

Distribution – getting the product to the Distribution – getting the product to the customercustomer

Pricing – competitive, fair, and profitable Pricing – competitive, fair, and profitable pricingpricing

Selling – How you present product to Selling – How you present product to customercustomer

Product service management – How you Product service management – How you manage a new products introductionmanage a new products introduction

Marketing FunctionsMarketing Functions

Promotion – how you will inform, Promotion – how you will inform, persuade, remind your customer about the persuade, remind your customer about the productproduct

Financing – how you obtain the money for Financing – how you obtain the money for your business, give your customers your business, give your customers financingfinancing

Marketing information management – Marketing information management – gather data to make informed decisions.gather data to make informed decisions.