Presentation is loading. Please wait.

Presentation is loading. Please wait.

Career and Financial Management Becoming an Entrepreneur.

Similar presentations


Presentation on theme: "Career and Financial Management Becoming an Entrepreneur."— Presentation transcript:

1 Career and Financial Management Becoming an Entrepreneur

2 Objectives  Define entrepreneur and identify key traits of successful entrepreneurs  List the four ways to become a business owner  Identify forms of business ownership and factors that can affect business success

3 Small Businesses  The person who organizes and runs a business is an entrepreneur  99% of American companies are small businesses  Around 500 employees or less  Begin with a few employees

4 Being an Entrepreneur  An entrepreneur’s life is challenging Traits of an Entrepreneur Sight and Foresight Decision- making Motivation

5 Advantages & Disadvantages AdvantagesDisadvantages IndependenceStress FlexibilityAdministration ExcitementLong Work Hours Salary PotentialFinancial Risk

6 Do You Have What it Takes?  Do you make good decisions quickly?  Can you supervise people well?  Can you motivate people to do their work well?  Do you have a good knowledge of the service or product you want to provide?  Are you comfortable around strangers?  Do you have unlimited ambition and drive?

7 The Bottom Line Being an Entrepreneur  Requires specific traits  Has advantages and disadvantages  Not everyone has what it takes

8 Becoming a Business Owner Four ways to go into business  Start a new business  Buy an existing business  Buy a franchise  Join a family business

9 Ideas for Starting a New Business  Hobby Business  Product Services  Personal Services  Business Services

10 Starting a New Business ADVANTAGES Develop your own reputation Build business your own way Personal satisfaction knowing you built the business DIADVANTAGES Requires more time and effort than buying an existing business Start-up costs are high Can be difficult to borrow money No guarantee of success

11 Buying an Existing Business  Successful businesses for sale  Owner is retiring  Owner is starting a new business  Unsuccessful businesses for sale  Losing too much money  Determine if problems can be fixed before purchasing

12 Buying an Existing Business ADVANTAGES Puts you several steps ahead Take advantage of previous owner’s agreements Build on the goodwill of existing customers Positive reputation Trained staff DIADVANTAGES Poor location Strong competition taking away business Poor market outlook Building or equipment may need expensive repairs or replacement Poor reputation

13 Buying a Franchise  Franchise: the legal right to sell a company’s goods and services in a particular area  Many restaurants and real estate offices  Pay a percentage of your profits to the parent company

14 Buying a Franchise ADVANTAGES Recognizable product name Established procedures and management systems Established business reputation and customer goodwill Training, advertising, financing, and support services DIADVANTAGES May be less profitable Must follow established guidelines of parent company Less personal satisfaction

15 Joining a Family Business ADVANTAGES Financing can be split amongst relatives Trust and loyalty between family members Working as a team can achieve more than as an individual Same goodwill and trust of customers DIADVANTAGES Additional issues on top of typical business ownership stress Not all families work well together Difficulties can affect family relationships

16 The Bottom Line BUSINESS OWNER Start a Business Buy a Business Family Business Franchise

17 Forms of Business Ownership  Three basic ownership types  Sole proprietorship: business is completely owned by one person  Partnership: legal arrangement where two or more people share ownership of a business  Corporation: business chartered by a state that legally operates apart from the owner(s)

18 Financing Your Business  Starting a business requires money  Financing sources:  Personal savings  Loan from friends/family  Loan from commercial lenders  Develop a business plan and a financial plan before applying for loans

19 Business and Financial Plans BUSINESS PLAN Describes product Business location Number of employees Salaries Describes competition Marketing plan Timetable for starting FINANCIAL PLAN Start-up costs Operating expenses Cost of manufacturing product Cost of selling product Additional cost in the first few months

20 Succeeding in Business Financing Competition Location Management Business Success

21 The Bottom Line Starting a business OwnershipFinancingSuccess Sole Proprietorship Personal Savings Financing Partnership Loans from Friends/Family Management Corporation Commercial Lenders Business Plan Financial Plan Competition Location


Download ppt "Career and Financial Management Becoming an Entrepreneur."

Similar presentations


Ads by Google