1. Entrepreneurship

2. Who is an Entrepreneur?
An entrepreneur is an individual who undertakes the creation, organization, and ownership of a business.

3. Why Be an Entrepreneur? Rewards Being your own boss.
Doing something you enjoy.
Having the opportunity to be creative.
Freedom to set your own schedule.
Controlling your own salary.
Contributing to the community.

4. Why Be an Entrepreneur? Costs and Risks Work Long hours
Having an uncertain future.
Being fully responsible.
Risking one’s investment.

5. Characteristics of an Entrepreneur
Persistent
Creative
Responsible
Inquisitive
Goal-Oriented
Independent

6. Characteristics of an Entrepreneur
Self-Demanding
Self-Confident
Risk-Taking
Restless
Action-Oriented
Enthusiastic

7. Skills Needed by Entrepreneurs
Communication Skills
Human Relations Skills
Math Skills
Problem-Solving and Decision-Making Skills
Technical Skills
Basic Business Skills

8. Entrepreneurship in the Food Industry
Independent Restaurant- has one or more owners and is not affiliated with a national name or brand.
Chain Restaurant-has many individual restaurants that all have the same atmosphere, service, menu and quality of food.
Franchise-a franchise company sells the business owner the rights to its name, logo, concept and products. In return, the business owner agrees to run the business as outlined by the franchise company.

9. Entrepreneurship in the Food Industry
Advantages
Ownership
Job Satisfaction
Earning Potential
Disadvantages
Financial Risk
Competition
No Guarantees- nearly ½ of all individually owned restaurants fail within 12 months. About 85% close within the first five years.

10. Business Planning Answer the following questions:
What is the product or service being offered?
Who is the customer?
What is the benefit you are providing?
How will you get the product or service to the customer?
A business concept is an idea for a new business that can be tested.

11. Testing the Concept in the Market
Feasibility Analysis- Process used to test a business concept.
Are there customers who want what you have to offer?
What conditions must be present for you to decide to go forward with the business?

12. Testing the Concept in the Market
Target Customers- the most likely the buy a product or service.
Niche- A small segment of the market.
Create a Competitive Grid- a chart that allows you to organize important information about the competition.

13. Competitive Grid

14. The Business Plan
A business plan is a document that describes a new business. It explains to lenders and investors why the new business deserves financial support.
Why Make a Business Plan?
To obtain financing.
To serve as a living guide for the business.
To provide a start-up blueprint.

15. The Parts of Business Plan
Operational Plan- Includes all of the processes that take place in the business so that the product or service is produces and delivered to the customer.
Organizational Plan- Looks at the people aspect of the business.
Marketing Plan- How a company makes it customers aware of its products or services.
Executive Summary -a brief summary of the key points contained in a business plan.
Product/Service Descriptions- Present the product or service you are offering.
Management Team- List your qualifications and those of any partners you will have.
Industry/Market Analysis- Present your research into the industry and market. Analyze your customers, competition, and industry.

16. The Parts of a Business Plan
Financial Plan -Presents the forecasts for the future of the business. Also explains the assumptions made when calculating your forecast figures.
Growth Plan- Looks at how the business will expand into the future.

17. Calculating Pricing
Break Even Point- point at which the money from product sales equals the costs of making and distributing the product.

18. Calculating Pricing
Markup- the amount added to the cost of an item to cover expenses and ensure a profit.
Cost + markup = Price

19. Purchasing Management
Inventory Management
Select the right quantity
Buy the right quantity- inventory management
Timing your purchases
Choose the right vendors
Reliability
Distance
Service

20. Finances Income Statement
A financial report that shows how much a business has earned or lost during a year.

21. Finances Balance Sheet
A financial statement that tells you what your business is worth at any given time.

22. Finances
Sales Forecast
An estimate of sales for a specified period.

23. Finances Variable Costs Fixed Costs
Business expenses that change with each unit of product produced such as utilities, wages, and production materials.
Fixed Costs
Expenses that do not change with number of units produced. Example: insurance and rent.

24. Finances Cash Flow Statement
A financial statement that describes the flow of cash into and out of a business.

25. Marketing Promotional Mix
The combination of promotional media to reach a target market within a promotional budget.
Includes print and broadcast media.

26. Marketing Five P’s of Promotion
Product-how you will design and package your product. Is it a known product or is it new and innovative?
Price- how you will price your product/service?
Place- where is your product or service sold? (web, over the phone, at a place of business)
Promotion-How promoted? Advertising, publicity, personal selling?
People- who will be responsible for marketing you product/service?

27. Pricing Factors affecting Price Costs and expenses Supply and demand
Customer perception
Competition
Government Regulations
Technological trends

28. Steps in Starting a Business
Idea for a new business- Business Concept.
Conduct a Feasibility Analysis to see if the idea is possible.

29. Steps in Starting a Business
Make a Prototype
Create a Competitive Grid to find out about competition in the market.
Determine Target Customers

30. Steps in Starting a Business
After you conduct a Feasibility Analysis, decide whether or not the business is possible.
If the idea is possible, then create a Business Plan
Need a business plan when getting a loan.
Need a business plan even if you have all the money you need to start a business

31. Review of Financial Statements
Income Statement
Shows the amount of profit or loss.
Balance Sheet
Tells what a business is worth at any given time. Includes inventory, loans, etc.
Cash Flow Statement
Shows the flow of cash into and out of a business.