J OURNAL Who do you think is one of the most important entrepreneurs and why?

S HOULD YOU BECOME AN ENTREPRENEUR ?

E NTREPRENEUR ? How would you define an entrepreneur? Who are some famous entrepreneurs? Why do people become entrepreneurs?

E NTREPRENEURSHIP Entrepreneur-People who own, operate and take the risk of a business venture Entrepreneurship-Process of running a business of one’s own. Employees –people who work for someone else. Both make decisions but only the entrepreneur is directly affected by the consequences of those decisions.

W HY BECOME AN ENTREPRENEUR ? Go into business for yourself Pursue a personal dream Become your own boss Freedom Financial gain Recognition Leave the corporate environment

T YPES OF BUSINESSES Manufacturing Produce products they sell Examples-Procter and Gamble, Ford Wholesaling Sell products to other businesses rather than final consumer Examples-Shehan Sales, Rockbottom Deals Retailing Sell products directly to those who use them Examples-Sears, Dierbergs Service Sell services rather than products Examples-U-Haul, Rottlier Pest

O THER B USINESS AREAS Agricultural Generate fresh produce and other farm products such as cattle and wheat Example-Tyson Mining and extracting Take resources out of the ground so they can be consumed such as coal or oil Example-BP

A MERICAN E NTREPRENEURS Howard Schultz-Took Starbuck’s to Espresso Bar and created the coffeehouse culture after a trip to Italy Bernie Marcus and Arthur Blank re-envisioned the local hardware store by developing the Home Depot as a warehouse type store carrying over product with a wide assortment at low prices. Oprah Winfrey expanded her vision of entertainment by developing her own production company, HARPO Productions. They produce her show, mini-series, TV movies and other TV shows such as Dr. Phil. Can you think of any others?

S UCCESS OR F AILURE 2/3 of new businesses survive in the first 2 years, 44% are still around after four years Major reasons for success: Adequate capital Meeting customers’ needs Owner’s education level Owner’s reason for starting the business Owner’s experience

S MALL BUSINESSES 6.5 million in the US economy Employ more workers than large corporations More creative and can take more risks Experimentation and innovation lead to technological change and increased productivity Play a vital role in US economy

C HARACTERISTICS OF AN ENTREPRENEUR Independent Self-confident Determination Goal oriented High standards Creative Act quickly Tech savvy

W ORKING WITH OTHERS Entrepreneurs need to also be good team members Commitment Competency Communication Cooperation Creativity

A DVANTAGES AND D ISADVANTAGES Advantages Own boss Choose a business that interest you Creativity Make money Disadvantages Risky Uncertain and irregular income Long hours of work Make all decisions yourself

F INDING AN IDEA Opportunities vs. ideas Hobbies and interests Past experiences Discovery or invention Library /Internet Trade shows Business magazines and newspapers Other business owners Gut instinct County business patterns

A SSESS YOUR IDEA Is there a market and will people buy it? How much money will I need up-front ? Will I need to borrow money? How much time will it take to run this business and can I make that commitment? What are the risks and rate of failure for this business? Do I have the experience and back ground to run this business? How much money can I make?

SMART G OALS Specific Measurable Attainable Realistic Timely Goal: I will learn about starting my own business vs. SMART Goal: I will learn more about starting my own catering business by obtaining info from SBA and talking to 3 other owners of catering businesses by the end of the month

S ET FINANCIAL AND NON - FINANCIAL GOALS Financial How much can I earn? How quickly can I pay off my debts? Be realistic Look at other similar businesses Non-financial Recognition Personal satisfaction Personal growth

P ROBLEM S OLVING P ROCESS 1. Define the problem 2. Gather information 3. Identify various solutions 4. Evaluate alternatives and select the best option 5. Take action 6. Evaluate the action

P ROBLEM SOLVING SKILLS Communication Brainstorming(generating a large number of fresh ideas) Learning from mistakes