Creating Your Business

1. Creating Your Business

2. Step 1 : Determining your Resources

3. Resources at your disposal • Capital Resources • An item that is used, that is man-made and must be purchased that helps you generate income. • Examples: cellphone, printer, fax, equipment etc. • Human Resources • Any human effort that is used during production, the effort can either be physical or intellectual • Examples: Assembly-line workers, ministers, store clerks etc. • Natural Resources • Items that are not man-made but come from the earth • Examples: Air, water, wood, crude oil, solar energy, wind energy

4. The Three Little Pigs

5. Once upon a time, there was a mother pig who had three little pigs. • The three little pigs grew so big that their mother said to them, “You are too big to live here any longer. You must go and build hoses for yourselves. But take care that the wolf doesn’t catch you.”

6. The three little pigs set off. “We will take care that the world does not catch us,” they said. • Soon they met a man who was carrying some straw. “Please will you give me some straw?” asked the first little pig. “I want to build a house for myself.” • “Yes,” said the man, and he gave the first little pig some straw.

7. He gathered together some twigs and twine and built himself a house of straw. He was very pleased with his house. He said, “Now the wolf won’t catch me and eat me.” • “I shat build a stronger house than yours,” said the second little pig. • “I shall build a stronger house than yours, too,” said the third little pig.

8. The second little pig and the third little pig went on along the road. Soon they met a man who was carrying some sticks. • “Please will you give me some sticks?” asked the second little pig. “I want to build a house for myself.” • “Yes,” said the man and he gave the second little pig some sticks.

9. The second pig gathered together some nails, a saw and a hammer, and built himself a house of sticks. It was much stronger than the house of straw. • The second little pig was very pleased with his house. He said, “Now the wolf won’t catch me and eat me.” • “I shall build a stronger house than yours,” said the third little pig.

10. The third little pig walked on, along the road, by himself. Soon he met a many carrying some bricks. • “Please will you give me some bricks?” asked the third little pig. “ I want to build a house for myself.” • “Yes,” said the man and he gave the third little pig some bricks.

11. The third little pig gathered together a trowel, a level, and some mortar, he hired some mice to help him along as he built his house of bricks. • It took him a long time to build it, or it was a very strong house. • The third little pig was very pleased with his house. He said, “Now the wolf won’t catch me and eat me.”

12. The next day the wolf came along the road. He came to the house of straw which the first little pig had built. • When the first little pig saw the wolf coming, he ran inside his house and shut the door. • The wolf knocked on the door and said, “Little pig, little pig, let me come in.”

13. “No, no,” said the little pig, “By the hair of my chinny chin chin, I will not let you come in. • “Then I’ll huff and I’ll puff and I’ll blow your house in,” said the wolf. • So he huffed and he puffed and he huffed and he puffed. The house of straw fell down and the wolf ate up the first little pig.

14. The next day the wolf walked further along the road. He came to the house of sticks which the second little pig had built. • When the second little pig saw the wolf coming, he ran inside his house and shut the door. • The wolf knocked on the door and said, “little pig, little pig, let me come in.”

15. “No, no,” said the little pig. “By the hair of my chinny chin chin, I will not let you come in.” • “Then I’ll huff and I’ll puff and I’ll blow your house in,” said the wolf. • So he huffed and he puffed and he huffed and he puffed. The house of sticks fell down and the wolf ate up the second little pig.

16. The next day the wolf walked further along the road. He came to the house of bricks which the third little pig had built. • When the third little pig saw the wolf coming, he ran inside his house and shut the door. • The wolf knocked on the door and said, “little pig, little pig, let me come in.”

17. “No, no,” said the little pig. “By the hair of my chinny chin chin, I will not let you come in.” • “Then I’ll huff and I’ll puff and I’ll blow your house in,” said the wolf. • So he huffed and he puffed and he huffed and he puffed. But the house of bricks did not fall down.

18. When the wolf saw that it was still standing he was very, very, very angry indeed. • He said, “little pig, I am going to eat you up. I am going to climb down your chimney to get you.” • The little pig was very frightened, but he said nothing. He put a big pot of water on the fire, to boil.

19. The wolf climbed on the roof. Then he began to come down the chimney. • The little pig took off the lid from the pot. Into the pot fell the wolf, with a big splash. And that was the end of the wolf. • The third little pig was too clever for him.

20. Step 2: Decision Time

21. Step 2: Decision Time • The first question • Nothing in this class is out of your reach… • How are you going to choose with an infinite amount of choices out there? • Is this a business that people are going to want to invest their money into? What type of business Do I Want to start?

22. Selecting your industry • Select the industry you are interested in working in • Some popular industries are: • Low cost • Food • Retail • Computer • Home Based • Automotive • Children • Health and Fitness • Mobile • Women’s • Sports • Cleaning

23. What are products? Goods • Car • Food • Home • Clothes Services • Hospital • TV repair • Auto Mechanic • Carpet Cleaners Ideas • Internet • Training • Computers • Printed Materials

24. Things to think about • Do people really want to buy it? • Sometimes you may be passionate about this product, but really nobody else is… you can’t sell things to people that they don’t want to buy. • Is your product seasonal? What are you going to do for the rest of the year? • Has someone else already thought of it? • You have a great idea, but someone beat you to it. They are better funded, may be doing it better/faster/cheaper etc. • A lot of people already thought of it • Is your market highly competitive? • There’s more to it than you realized. • Maybe you underestimated the cost, development time, energy required etc.

25. Best of Both Worlds • Self-Discovery • Find out what your are passionate about and figure out how to make a business out of it. • Inspiration • That idea just popped into your head one day may not be as crazy as you thought! • Observation • Constantly look for unmet needs. Is there a product or service that you would buy if it were accessible and affordable? • Imitation • One way to increase your odds of success is to find a proven business model and replicate it in a different market.

26. ­­­­­­­­­ What do you want to sell, or what service do you want to perform What is a good location for your business? Company Name / Idea Why do people want your company over other companies? What are some strengths of your company that others don’t have

27. Step 3: Finding your Target Market

28. What is a Target Market? • A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise

29. Who is the target market?