Creating, Owning, and Operating a Business

1. 14 Creating, Owning, and Operating a Business 14.1 Entrepreneurship and Business Ownership 14.2 Managing Human Resources 14.3 Safety and Security

2. Winning Strategies Reeling in a Professional Career • Aaron Lee Jakub is a professional angler. • More people fish than play tennis and golf combined. • The number of fishing competitions is growing rapidly. • Aaron is trying to find sponsors that will support both his passion for fishing and his love of working with children. Chapter 14

3. Lesson 14.1Entrepreneurship and Business Ownership Goals • Define entrepreneur and describe characteristics of successful entrepreneurs. • List and describe the key elements of a business plan. Chapter 14

4. Terms • entrepreneurs • business plan • sole proprietorship • partnership • corporation Chapter 14

5. THE IMPORTANCE OF ENTREPRENEURS • entrepreneurs • individuals who take the risk of starting, owning, and operating a business Chapter 14

6. Impact of Entrepreneurs • In the U.S., there are more than 5.8 million small businesses that contribute billions of dollars to the economy annually. • Nike was begun as a small business. Chapter 14

7. What It Takes to Be an Entrepreneur • Business goals must be set. • financial • nonfinancial • Strong money management skills are necessary. • Cash reserves sufficient to carry the entrepreneur through the first lean years are necessary. Chapter 14

8. Entrepreneurs need effective communication skills. • written • oral • interpersonal • “You only get one chance to make a positive first impression.” • “Thank you!” Chapter 14

9. List five characteristics and skills required to be a successful entrepreneur. Chapter 14

10. THE BUSINESS PLAN • business plan • a formal, written document that provides the details for a proposed new business • stakeholders • investors • lenders • suppliers Chapter 14

11. Key Elements of the Business Plan • executive summary • a brief description of the business idea • business description • history and background of the business idea • short- and long-term goals • products and services that will be offered Chapter 14

12. marketing plan • market research • strategies • marketing • pricing • advertising • promotions • business structure • ownership structure Chapter 14

13. sole proprietorship • owned and operated by one person • partnership • two or more individuals sign an agreement to own and operate a business together • corporation • business ownership represented by shares of stock Chapter 14

14. stockholders • owners of a corporation • operations management • the roles of key managers and staff members • financial forecast • current and projected financial statements • schedule • deadlines for specific milestones Chapter 14

15. List seven key elements of a good business plan. Chapter 14

16. Lesson 14.2Managing Human Resources Goals • Explain the need for human resources. • List and discuss the four functions of human resource departments. Chapter 14

17. Terms • human resources • job analysis • probationary period • salary • fringe benefits • cafeteria plan Chapter 14

18. THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT • human resources • the employees who work for an organization Chapter 14

19. Attracting and Keeping the Best • The human resource department needs to match the right person to the right job. • The human resource department • identifies personnel needs • attracts and maintains an adequate supply of employees • matches abilities and interests with specific jobs Chapter 14

20. provides training and development • develops compensation plans • protects employee well being • maintains a satisfying work environment Chapter 14

21. Why is the human resource department so important for an organization? Chapter 14

22. FOUR FUNCTIONS OF HUMAN RESOURCE DEPARTMENTS Planning and Staffing • The planning process involves examining the company’s current and future personnel needs. • job analysis • the study of a specific job to identify the duties and skill requirements of the job Chapter 14

23. permanent employees • individuals with a long-term commitment to continue working for the business as long as the business remains profitable • part-time workers • employees in permanent on-going jobs who work less than 30 hours per week Chapter 14

24. temporary employees • workers hired for a short time to complete a specific task • outsourcing or subcontracting • specific tasks are completed by individuals who are not employees of the company Chapter 14

25. resume • a document that “sells” a job candidate’s qualifications • application letter • accompanies a resume • must capture attention of employer Chapter 14

26. Performance Management • probationary period • a test period of a few months to determine if the new employee will fulfill the needs of the organization • Performance evaluations determine whether the employee is meeting the job requirements. Chapter 14

27. Compensation and Benefits • salary • annual job compensation • regardless of number of hours worked • incentive pay • compensation based upon the quantity and quality of completed work Chapter 14

28. fringe benefits • extra incentives beyond salary and wages that employers are not required by law to provide • cafeteria plan • employees pick and choose from various benefit options to best meet their needs • On average, fringe benefits comprise 20% - 40% of employees’ salaries. Chapter 14

29. Employee Relations • The human resource department: • provides workplace orientation • helps with dispute resolution • protects employees’ rights and well being Chapter 14

30. Explain the importance of job analysis. Chapter 14

31. Lesson 14.3Safety and Security Goals • Describe risks and safety strategies at concert events. • Describe increased security measures at sporting events. Chapter 14

32. Terms • crowd surfing • stage diving • moshing Chapter 14

33. SAFETY RISKS AT CONCERTS • Large crowds can present safety problems. • Accidents at public events can result in serious injury. Chapter 14

34. Risks at Concerts • Overcrowded events can result in: • trampled fans • compression asphyxia • an intolerable pressure that prevents individuals from breathing properly Chapter 14

35. crowd surfing • when a person is lifted above a densely packed crowd and is passed from person to person above audience members’ heads • injury can result • clothing, including studs, can scratch and bruise fans • when a surfer falls • other audience members fall too • people can get trampled by the crowd Chapter 14

36. stage diving • when a performer or fan dives from the stage into the crowd • moshing • a frenzied form of dance in which people in a circle rotate while simultaneously slamming into each other Chapter 14

37. mosh-bobbing • when fans jump up and down in the mosh pit • 75% of surveyed concert attendees revealed: • they feared for their safety during an event • they received injuries during an event Chapter 14

38. Managing the Risks • assigned seating • safety and emergency training for venue personnel • bans on: • crowd surfing • stage diving • third-time-out rule Chapter 14

39. Fan Precautions • Concert attendees need to proactively plan for their own safety. • Arrive early to familiarize yourself with the venue’s layout, emergency exits, and first-aid locations. • Plan with friends where to meet if you become separated. • Avoid the front of the stage. Chapter 14

40. For outdoor events, be aware of weather forecasts and observe changing conditions. • Avoid crowd surfing, stage diving, and moshing. • Leave early to avoid the rush. Chapter 14

41. Why are concerts and sporting events at risk for accidents? Chapter 14

42. INCREASED SECURITY AT SPORTING EVENTS • Terrorism, 9/11, and unpredictable human behavior are all reasons for increased security at sporting events. Chapter 14

43. Security Plans at Ball Parks and Stadiums • Large-scale gatherings have contingency plans in place for • natural disasters • terrorist attacks • Stadium personnel rehearse safety procedures. • how to remain calm during a disaster Chapter 14

44. Additional proactive measures at major sporting events include • restricting items that are allowed into the venue • limiting curbside access to handicapped individuals • close-circuit security televisions • wireless network security to patrol large areas surrounding an event Chapter 14

45. Replacing Police with Wireless Video Cameras • New York City spent $9 million to install 500 security cameras throughout the city. • Chicago spent about $5 million on a 2,000-camera system. • $9.8 million is budgeted to install surveillance cameras and sensors on a rail line in Washington, D.C. Chapter 14

46. Why should sporting event planners be concerned with security? Chapter 14

47. PERFORMANCE INDICATORS EVALUATED • Understand the latest safety trends at amusement parks. • Describe the responsibility or liability for consumer safety at an amusement park. Chapter 14

48. Explain the importance of “caveat emptor” at an amusement park. • Explain how safety at amusement parks is a publicity issue. • Describe the conflict between maximizing profit and incorporating all safety measures. Chapter 14

49. THINK CRITICALLY • Why must amusement parks rank safety as a top priority? • Should an amusement park be held liable for injuries suffered by guests who carelessly do not follow rules? Explain your answer. Chapter 14

50. Why are some attorneys interested in personal injuries and deaths suffered at amusement parks? • How does the topic “Safety at Amusement Parks” involve ethics issues? Chapter 14