Assessing Your Potential

1. Assessing Your Potential

2. Young Entrepreneurs • According to some studies (RBC, ‘97) being an entrepreneur is one of the most desirable professions. • Around a third of the youth surveyed (ages 18-35) indicated they wanted to start their own business. • While this survey may be dated it still reflects the positives with starting a venture, especially in this global economy.

3. Benefits • While being an entrepreneur may be challenging at a young age, the possible benefits offer life-long skills and experience that will assist in other career opportunities. • In other words, being an entrepreneur gives youth a head start on their future as employees or as employers.

4. Experience • Gaining experience can be a challenge for many youth, especially when employers are looking for workers that have skills they can bring to a job. • Unfortunately, many of you are inexperienced and unaware of how the business world works and you may find yourselves in some menial job that is unrewarding and boring.

5. One big challenge with youth ventures is the lack of credit history, collateral, and no history of paying off debt. How will you be able to pay for your venture when you have no money to start with and no banks want to deal with you?

6. Good News, kinda • Fortunately for you many young entrepreneurs have created successful businesses which may lead to investors taking a chance on ventures run by youth. It’s rare but it can happen with a plan. • Governments also offer incentives for young entrepreneurs and may help with consulting, mentoring and administration of the new venture.

7. The Value of Experience • When looking to start a venture one of the wise things to do is to become familiar with a similar or related industry. With a summer job or part-time work you can: • Learn about the infrastructure • Develop a positive reputation • Build a network of contacts • Earn money • Gain experience in the industry

8. Setting Goals • A goal is the purpose of your work-the objective you wish to reach. • Measuring your progress toward your goal can be done with milestones or stepping stones. • Stepping stones are short term while milestones are significant events.

9. Setting Goals • Follow these principles when setting your goals.

10. S.M.A.R.T. • Simple/Specific – keep it simple and write it down to serve as a constant reminder. • Measurable – You should know if you’ve reached the goal. • Achievable & Realistic – keep it challenging but not too challenging, frustration and failure may discourage you. • Timely – Have a target date to keep you focused.

11. Questions/activities to Do • What are some challenges facing young entrepreneurs? • Why is experience important for young entrepreneurs? How can you get experience? • Create a timeline for yourself with at least 10 milestones that you have and hope to achieve.

12. S.W.O.T. • Strengths • Weaknesses • Opportunities • Threats

13. Venture Case and self swot • Read page 54-55 of the text and complete questions 1,2 and 6 on page 55.

14. SWOT Analysis - Mercedes Benz Strengths • As a leading automobile company, Mercedes-Benz is in the prime position to lead other manufacturers around the world. It is well established, provides high quality vehicles, and enjoys very good branding, earning itself plenty of respect and prestige. It is a well known provider of luxury, offering solid design and expertly tuned ride comfort, making them one the most comfortable cars to ride. The company is also market savvy, with good access to global distribution with an array of agreements and alliances.

15. Weaknesses • The quality of the vehicles means that they are fairly or very expensive, with much of the cost due do fashion and prestige. The strong branding which promotes this has positives and negatives - consumers like a good brand, but high prices can be an issue. Promotion is one clear source of weakness. The company's promotional campaigns are rare, and the cars take a long time to make, which can lead to impatient customers.

16. Opportunities • There will always be plenty of opportunities for Mercedes-Benz, which can lead to higher profits and future expansion. The new clean energy cars will be the future, and will be a major new opportunity for the company if they can secure the right technology. Booming car markets in China offer new places to sell, and the honing of already established features will ensure that new customers will want to purchase from Mercedes-Benz.

17. Threats • Competition is increasing, as new and dominating Asian car markets move towards the global stage. Japan and America have increased car tax for large luxury cars, which makes them less desirable. There are also more subtle social and cultural factors which could have consequences for profitability in the future.

18. Regent Mall Car Wash Venture • For the summer months of June July and August, think about setting up a car wash detailing spot on the corner parking lot at the Regent Mall. Shoppers could drop off their cars for washing while they shop. Customers choose from a variety of car detailing ‘specials”. Basic wash, wash and wax, wash, wax and a carpet cleaning with vinyl cleaning. • Complete a SMART goals analysis of this Venture idea. What are the obstacle to overcome? What would be the goals to set for March, April and May? • Do a SWOT analysis for this venture. Refer to the handout for more detail

19. Why Set goals? • Day-to Day activities often prevent us from taking time to set goals. • Goal setting ultimately results in change. • Change comes hand in hand with risk. • Goal setting is a way to manage change • Helps recognize that the present is a steppingstone to the future. • Allows people to choose the path that fits/looks the best.

20. Are you an Edison or Einstein? • Handout Activity • Discussion – What are the advantages and disadvantages of each approach?

21. Classifying your Skills • Read pages 58 and 59. Consider your strongest skills. Are they interpersonal, thinking, or practical, or a combination of all three? Describe at least three of your best skills and classify them. • Pick one interpersonal skill, one thinking skill and one practical skill that you would like to improve. What can you do to improve them? Present your ideas in a chart or picture.