Should You Become an Entrepreneur?

1. 1 Should You Become an Entrepreneur? 1.1 All About Entrepreneurship 1.2 Is Entrepreneurship Right for You? 1.3 Exploring Ideas and Opportunities 1.4 Problem Solving for Entrepreneurs

2. Lesson 1.1All About Entrepreneurship Goals • Define entrepreneurship. • Recognize the role entrepreneurs play in the U.S. economy. • Examine the reasons that businesses succeed or fail. Chapter 1

3. Terms • entrepreneurs • entrepreneurship • employees Chapter 1

4. What is an Entrepreneur? • entrepreneurs • people who own, operate, and take the risk of a business venture • entrepreneurship • The process of running a business of one’s own Chapter 1

5. Entrepreneurs identify unmet needs in the marketplace. • They provide a service or product to meet those needs. Chapter 1

6. employees • people who work for someone else • are subjected to neither the risks nor benefits of business ownership Chapter 1

7. Reasons for becoming an entrepreneur include: • the desire to set your own schedule • the need to work out of your home • the wish to pursue a personal dream Chapter 1

8. Types of Entrepreneurial Businesses • Manufacturing – produces products they sell • Wholesaling -sells products to other businesses • Retailing – sell products to those who consume them. Chapter 1

9. Types of Entrepreneurial Businesses • Service – sells services rather than products to consumers. • Agricultural – generates fresh produce and other farm products • Mining and extracting - takes resources out of the ground so they can be consumed. Chapter 1

10. Chapter 1

11. Recognizing Opportunity • Many companies began with one person who started a business based on a single opportunity. • Small businesses employ more workers than all of the country’s large corporations combined. Chapter 1

12. Recognizing Opportunity • Small firms with fewer than 500 employees represent 99.9% of 25.8 million businesses in the United States • Small companies can be more creative and take more risks than large companies. Their experimentation and innovation lead to technological change and increased productivity. Chapter 1

13. Entrepreneurs Who Changed America • Starbucks Coffee Company • retailer of coffee products • introduced new product, Espresso • became international coffeehouse franchise Chapter 1

14. The Home Depot • corporate vision was to provide home improvement products • at the lowest price • with the best customer service • within 30 years, has expanded to 2,100 stores Chapter 1

15. HARPO Productions, Inc. • founded in 1986 • Oprah Winfrey is the first woman in history to own and produce her own talk show • HARPO Entertainment Group • HARPO Films • HARPO Video Chapter 1

16. Describe how one of the entrepreneurs discussed above recognized an opportunity to develop a successful business. Chapter 1

17. Business Success or Failure • Over half of all new businesses fail within their first four years. • Major factor in a firm’s success include: • Having adequate capital • providing a product or service that meets customers • Owner’s education and experience • Owner’ reason for starting in the first place Chapter 1

18. Reasons business fail: • Owner’s poor planning • Lack of business knowledge • Lack of Entrepreneurial characteristics • Inability to work with others • Failure to choose the right business Chapter 1

19. Business Success or Failure • Success requires a firm understanding of how to run a business. • Most businesses fail because owner lacks business experience • Perseverance is a requirement for success. Chapter 1

20. What factors contribute in helping a business to succeed? Chapter 1

21. Lesson 1.2Is Entrepreneurship Right for You? Goals • Identify the characteristics of successful entrepreneurs. • Identify the characteristics of good team members. • Assess whether you have what it takes to succeed in your own business. Chapter 1

22. Characteristics of Successful Entrepreneurs • Successful entrepreneurs are: • independent • self-confident • determined • goal-oriented • achievement-oriented Chapter 1

23. inclined to set high standards for themselves • creative • able to act quickly • technologically savvy Chapter 1

24. Name three important characteristics of entrepreneurs. Chapter 1

25. Characteristics of Good Team Members • Good team members display the following traits: • commitment • competency • communication • cooperation • creativity Chapter 1

26. Why is it important for entrepreneurs to be good team members? Chapter 1

27. Are You Right for Entrepreneurship? • self-assessment • an evaluation of your strengths and weaknesses • aptitude • the ability to learn a particular type of job Chapter 1

28. Chapter 1

29. Assess the Advantages of Entrepreneurship • Advantages of entrepreneurship include: • being your own boss • choosing a business of interest to you • being creative • making large sums of money Chapter 1

30. Assess the Disadvantages of Entrepreneurship • Disadvantages of entrepreneurship include: • risk • uncertain and irregular incomes • long hours • all decisions are made independently Chapter 1

31. What characteristics do you have that are best suited to entrepreneurship? Chapter 1

32. Lesson 1.3Exploring Ideas and Opportunities Goals • Identify sources for new business ideas. • Recognize different business opportunities. • Identify you own personal goals. Chapter 1

33. Terms • opportunities • ideas • trade shows Chapter 1

34. Look for Ideas • opportunities • possibilities that arise from existing conditions • ideas • thoughts or concepts that come from creative thinking Chapter 1

35. Ideas come from a variety of sources including: • hobbies and interests • past experiences • discovery and invention Chapter 1

36. Where do new ideas for businesses come from? Chapter 1

37. Investigate Opportunities • Research can help you determine what is missing in a particular market. • Internet • library • Small Business Administration Chapter 1

38. trade shows • special meetings where companies of the same or related industry display their products Chapter 1

39. Compare Different Opportunities • For each business opportunity, you should consider: • Will people buy my product or service? • How much money is required to start the business? • How many hours per week will it take to run the business? Chapter 1

40. What are the business risks? • Do I have the right background to run this business? • What income will this business generate? Chapter 1

41. How can you find out about various business opportunities? Chapter 1

42. Setting Goals Chapter 1

43. Financial Goals • Financial goals should be: • realistic • measurable • easily attainable in the time allotted Chapter 1

44. Nonfinancial Goals • Nonfinancial goals may include: • personal satisfaction • serving a community need • enjoying personal independence Chapter 1

45. Why are financial goals important? Name some nonfinancial goals an entrepreneur may have. Chapter 1

46. Lesson 1.4Problem Solving for Entrepreneurs Goals • List the six steps of the problem-solving model. • Describe ways to improve your problem-solving skills. Chapter 1

47. Terms • brainstorming Chapter 1

48. Use the Problem-Solving Process Chapter 1

49. Define the Problem • write down what the problem is • define why it is a problem • quantify the problem • Gather Information • collect information that can help solve the problem Chapter 1

50. Identify Various Solutions • identify all possibilities before selecting a particular solution • Evaluate Alternatives and Select the Best Option • quantify or rank alternatives Chapter 1