Entrepreneurship

1. Entrepreneurship Is it for you???

2. Entrepreneurs • Someone who takes a risk to start a business • The process of owning, operating, and establishing a business.

3. Differences between and entrepreneur and manager???? • A manager does not assume all of the risk like an owner • A manager is limited in his decision-making • The owner keeps all of the profits – the manager gets a salary

4. Characteristics of entrepreneurs • Creative thinkers • Independent • Persistent • Self-confident • Organized • Good decision-makers • Open-minded/flexible • Like challenges

5. Ways to determine if entrepreneurship is right for you? • Assess your interests • Assess your aptitude • Assess the advantages and disadvantages of being an entrepreneur

6. Advantages of entrepreneurship? • Are your own boss • Choose a business that interests you • Can be creative • Potential to make lots of

7. Disadvantages • Entrepreneurship is risky • Have uncertain and irregular incomes • Work long hours • Must make all decisions by themselves

8. Successful Entrepreneurs • Do a self assessment – evaluate your strengths and weaknesses • Investigate the opportunities • Is there a market? • How many hours will I work? • Do I have the right background? • Set goals • Financial – how much money make, how long to make a profit • Non-financial – personal satisfaction, independence

9. Ways to obtain financing • Banks • Credit Unions • Loan agencies • Friends • Family

10. Offer financing for your customers • Credit cards • Layaway • Outside finance companies

11. Professional Development: Updates in your field • Seminars • Trainings • Trade shows • Conferences • Online classes

12. Writing Skills • Business letters - A more formal letter with business content • Typed • No grammar errors • Always put date • Use titles and names properly: Mrs., Mr. etc. • Be positive and direct • Use appropriate closings: sincerely, cordially, etc. • Parts of a Business Letter

13. Memorandums (Memos) • Short, written form of business communication that has a set format • To: All students • From: Debbie Harris • Date: September 22, 201 • Re: Chicago http://www2.davidson.k12.nc.us/ndm/kb_curr/BigRocks/MarsBigRocks/BigRockMemo_ReviewMarsDay3AnsKey.pdf • The Chicago trip will be.......(body) • Interoffice memos – memo from one person in a company to another in the company (hand delivered, faxed, emailed , etc.)

14. Speaking Skills • Verbal: When on the telephone • Speak Clearly and directly • Be cheerful • Be polite • Think about what you are going to say • Take notes

15. Non-verbal skills/ business presentations • Non-verbal: Your body language • Facial expressions • Hand movements • Position of body • Sound of voice • Presentations: When speaking in front of a group • Loud enough and clearly • Good posture • Eye Contact with crowd

16. Problem – Solving Skills • Define the problem: sales are down • Gather information: surveys, focus groups, employee feedback • Identify various solutions – change product mix • Evaluate alternatives and select best options: Choose more variety of jeans • Take action: Buy more jeans targeted to teens • Evaluate the action: Look at sales afterwards/profit

17. Technologies in business • E-mail - messages sent via the Internet (typically not as formal) • Fax machine – send hard copies to other fax machines (usually put a cover sheet with it) • Voice mail – Leave a message that is recorded for the recipient • Cell phone – used for calls when out of the office

18. Types of businesses • Manufacturers – produce the products they sell (Gatormade Trailers, Toyota, etc.) • Wholesalers – Store and sell products to people other than final customer • Modern Vending, Somerset Foods)

19. Types of businesses • Retailers – sell products directly to the people who use or consume them • Kroger, Kmart, Speedway, Autozone • Service Business – Sell services rather than products • Hairdressers, car washes, repair shops, hotels

20. Types of Ownership • Sole Proprietorship – A business owned by one person exclusively (most common form) • Advantages: • Government has little control • You are the main boss • Keep all of the profits • Disadvantages: • You have all of the liability (can take your personal assets) • You work long hours • You are the only one contributing mone • Government has little control • You are the main boss • Keep all of the profits

21. Partnership • Partnership – a business owned by two or more people • Advantages: • Share responsibilities • Have other income besides your own • Share losses • Not a lot of government regulation • Disadvantages: • Share the profits • Are legally liable for the errors of the partner

22. Corporation • Corporation – Is treated independently of its owners and has the legal rights of a person • Advantages: • Can raise capital by selling stock • Stockholders are only responsible for the money invested (liability is less) • Disadvantages: • High government regulation • Taxed higher (income is taxed twice • Costly to set up

23. Franchise • Franchise – legal agreement that gives an individual the right to market a company’s product in a particular area • Franchisor – person who offers franchise for purchase • Franchisee – person who buys franchise agreement • McDonalds • Wendyshttp://company.papajohns.com/franchise_opps/pdf/2010_Dev_Incentive.pdf

24. 4 main functions of a business • Business/Management/ Entrepreneurship – Someone to manage/run the business • Communication and Interpersonal skills – verbal and nonverbal communication • Economics – how the economy affects your business • Professional Development – keeping updated in your field

25. Social Responsibilities • Follow environmental laws (EPA) • Conservation and recycling/Green marketing • Business ethics – fair, right, and honest practices • Participate in community service activities

26. Services that our Government provides • Military • Police • Fire protection • Free public education • Roads, bridges • Public libraries • Social welfare system: Medicare – elderly Medicaid – poor

27. Supporter of business • Provides disaster relief after a natural disaster. Example: Hurricane Katrina • Run the Small Business Administration (SBA) – which provides counseling and educational materials to both businesses and home owners http://www.sba.gov/ • To encourage global business activity by establishing trade alliances with other countries • Example: Selling Nike shoes to customers in Africa

28. Regulator of Businesses/Consumer and worker Protection • Consumer and worker protection: • OSHA – protects against unsafe conditions * Unhealthy chemicals * Unsafe equipment • Food and Drug Administration(FDA): Protects consumers against bad food and drugs

29. Other regulations • Equal Employment Opportunity Commission – protects against discrimination in hiring due to age, gender, race, religion, disability, national origin

30. Regulation (cont.) • Environmental Protection Agency (EPA) – protects against damage to the environment • Securities Exchange Commission – regulates the sale of stocks and bonds

31. Government’s role as a Competitor • U.S. Post office competes with UPS and Fed Ex • Tennessee Valley Authority (TVA) – electric company • Amtrak – competes with other forms of transportation like subways, busses, taxis

32. Consumer Protection Agencies • Federal Trade Commission – investigation of deceptive and misleading business practices like false advertising, prevents monopolies, etc. • Better Business Bureau - Consumer and Business Reviews, Reports, Ratings, Complaints and Accredited Business Listings http://www.bbb.org/

33. Consumer Protection Agencies • Consumer Product Safety Commission – • Home Page | cpsc.gov • Protect "against unreasonable risks of injuries associated with consumer products." • Recalls/hazards

34. Seven Marketing Functions • Distribution – getting the product to the customer • Pricing – competitive, fair, and profitable pricing • Selling – How you present product to customer • Product service management – How you manage a new products introduction

35. Marketing Functions • Promotion – how you will inform, persuade, remind your customer about the product • Financing – how you obtain the money for your business, give your customers financing • Marketing information management – gather data to make informed decisions.