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_ReviewMars
  Day3AnsKey.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.)

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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

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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

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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

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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)

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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

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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

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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

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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

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Franchise

• Franchise legal agreement that gives an
  individual the right to market a companys
  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

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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

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Social Responsibilities

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

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Services that our Government provides

• Military
• Police
• Fire protection
• Free public education
• Roads, bridges
• Public libraries
• Social welfare system Medicare elderly
• Medicaid poor

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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

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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

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Other regulations

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

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Regulation (cont.)

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

31
Governments 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

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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/
  

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Consumer Protection Agencies

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

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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

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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.