Chapter 1: The Entrepreneurial Life Page 5

The Entrepreneurial Life What is an Entrepreneur? What is an Entrepreneur? Most answers include: People who discover a market need, launch new businesses, take risks, changers, innovators, etc. Most answers include: People who discover a market need, launch new businesses, take risks, changers, innovators, etc. These are all correct!! These are all correct!! Can second generation owners or franchisees be considered entrepreneurs? Can second generation owners or franchisees be considered entrepreneurs?

The Entrepreneurial Life Definition 1- Entrepreneur Definition 1- Entrepreneur A person who relentlessly pursues an opportunity (new or existing) to create value while assuming risk AND reward A person who relentlessly pursues an opportunity (new or existing) to create value while assuming risk AND reward They do more with less They do more with less

The Entrepreneurial Life Definition 2- Bootstrapping Definition 2- Bootstrapping Controlling resources, even when you don’t own them Controlling resources, even when you don’t own them Huh? Huh? You don’t waste money even if it’s not yours!! You don’t waste money even if it’s not yours!!

The Entrepreneurial Life Definition 3- Small Business Definition 3- Small Business Small compared to larger companies in their industry, geographically concentrated, few investors, and small management team Small compared to larger companies in their industry, geographically concentrated, few investors, and small management team What are some examples? What are some examples?

The Entrepreneurial Life Can you be BOTH a Small Business Owner and an Entrepreneur? Can you be BOTH a Small Business Owner and an Entrepreneur? YES! YES! Definition 4- Entrepreneurial Opportunity Definition 4- Entrepreneurial Opportunity An “economically attractive” and “timely” opportunity that creates value for prospective customers and the business owner An “economically attractive” and “timely” opportunity that creates value for prospective customers and the business owner

The Entrepreneurial Life Research Activity Research Activity Work in groups to gather information about the following people Work in groups to gather information about the following people Group 1- Alex Calderwood- Ace Hotels Group 1- Alex Calderwood- Ace Hotels Group 2- Shannon Guderian- Late Model Restoration Supply Group 2- Shannon Guderian- Late Model Restoration Supply Group 3- Jerry Murrell- Five Guys Group 3- Jerry Murrell- Five Guys The basics: Who are they?, What did they do? How did they do it? Why did they do it? How are they entrepreneurs? The basics: Who are they?, What did they do? How did they do it? Why did they do it? How are they entrepreneurs?

The Entrepreneurial Life Key Stat #1: According to the US Census Bureau, over 50% of all Small Business owners were raised in a “Small Business Family.” Key Stat #1: According to the US Census Bureau, over 50% of all Small Business owners were raised in a “Small Business Family.” What are some reasons people seek to be Entrepreneurs? What are some reasons people seek to be Entrepreneurs?

The Entrepreneurial Life Enjoy Satisfying Work Enjoy Satisfying Work Find Fulfillment Find Fulfillment Develop Financial Wealth Develop Financial Wealth Be Your Own Boss Be Your Own Boss Escape a Bad Situation Escape a Bad Situation

The Entrepreneurial Life “Choose a job you love, and you will never have to work a day in your life.”- Confucius “Choose a job you love, and you will never have to work a day in your life.”- Confucius When you truly enjoy coming to work and doing your job, what happens? When you truly enjoy coming to work and doing your job, what happens?

The Entrepreneurial Life Finding Fulfillment Finding Fulfillment Not only happiness in your job, but making others’ lives better Not only happiness in your job, but making others’ lives better Who? Who? Employees, your Customers, the Public Employees, your Customers, the Public How? How? Pricing Strategies, Free Meals, Donating Profits to Charities, Sponsorships in the community, etc. Pricing Strategies, Free Meals, Donating Profits to Charities, Sponsorships in the community, etc.

The Entrepreneurial Life Internet Activity Internet Activity Who is Blake Mycoskie? Who is Blake Mycoskie? What are some endeavors he’s started? What are some endeavors he’s started? How does he feel fulfillment? How does he feel fulfillment?

The Entrepreneurial Life Developing Financial Wealth Developing Financial Wealth Is Money worth it? Is Money worth it? Be Your Own Boss Be Your Own Boss What are some advantages and disadvantages? What are some advantages and disadvantages?

The Entrepreneurial Life Escape a Bad Situation Escape a Bad Situation Definition 5- Reluctant Entrepreneur Definition 5- Reluctant Entrepreneur A person who becomes an Entrepreneur because of an extreme hardship A person who becomes an Entrepreneur because of an extreme hardship What is hardship? What is hardship? Tina Aldatz- Foot Petals Tina Aldatz- Foot Petals

The Entrepreneurial Life Definition 6- Refugees Definition 6- Refugees A person who becomes an Entrepreneur to escape an undesirable situation? A person who becomes an Entrepreneur to escape an undesirable situation? What is an undesirable situation? What is an undesirable situation? Someone who is “burnt out” Someone who is “burnt out”

The Entrepreneurial Life Founder Entrepreneurs v. Others Founder Entrepreneurs v. Others Definition 7- Founders Definition 7- Founders An entrepreneur who brings a new business into existence An entrepreneur who brings a new business into existence Definition 8- Franchisee Definition 8- Franchisee An entrepreneur who is limited by a contractual relationship with a Franchisor An entrepreneur who is limited by a contractual relationship with a Franchisor

The Entrepreneurial Life High Potential Ventures v. Attractive Small Firms and Microbusinesses High Potential Ventures v. Attractive Small Firms and Microbusinesses Definition 9- Gazelle (High Potential Venture) Definition 9- Gazelle (High Potential Venture) A gazelle is a small firm that has great potential for growth A gazelle is a small firm that has great potential for growth What are some famous gazelles? What are some famous gazelles?

The Entrepreneurial Life Definition 10- Attractive Small firm Definition 10- Attractive Small firm Potential for very large returns Potential for very large returns Construction, Manufacturing, Technology Construction, Manufacturing, Technology Key Stat #2 Key Stat #2 Women are starting new businesses at TWICE the rate of men!! Women are starting new businesses at TWICE the rate of men!!

The Entrepreneurial Life Definition 11- Microbusiness Definition 11- Microbusiness Provide modest returns to owners (Some can be big $) Provide modest returns to owners (Some can be big $) Dry cleaners, beauty shops, Auto shops, etc. Dry cleaners, beauty shops, Auto shops, etc.

The Entrepreneurial Life 5 Key Edges of Entrepreneurs 5 Key Edges of Entrepreneurs 1.) Customer Focus 1.) Customer Focus 2.) Quality Performance 2.) Quality Performance 3.) Integrity and Responsibility 3.) Integrity and Responsibility Innovation Innovation Special Niche Special Niche What is a niche market? What is a niche market?

The Entrepreneurial Life 6 Characteristics of Entrepreneurs 6 Characteristics of Entrepreneurs 1.) Commitment and Determination 1.) Commitment and Determination 2.) Leadership 2.) Leadership 3.) Opportunity Obsession 3.) Opportunity Obsession 4.) Tolerance of Risk, Ambiguity, Uncertainty 4.) Tolerance of Risk, Ambiguity, Uncertainty 5.) Creativity, Self- Reliance, and Adaptability 5.) Creativity, Self- Reliance, and Adaptability 6.) Motivation to excel 6.) Motivation to excel

The Entrepreneurial Life 6 Poor Attitudes 6 Poor Attitudes 1.) Overestimate your abilities 1.) Overestimate your abilities 2.) Lack of Market Understanding 2.) Lack of Market Understanding 3.) Hire mediocrity 3.) Hire mediocrity 4.) Fail to be member of the “team” 4.) Fail to be member of the “team” 5.) Be domineering 5.) Be domineering 6.) Not share any ownership 6.) Not share any ownership

The Entrepreneurial Life Why are mentors important? Why are mentors important? Definition 12- Mentor Definition 12- Mentor A knowledgeable person who can offer guidance based on experience in a given field A knowledgeable person who can offer guidance based on experience in a given field Wring activity Wring activity Who are two mentors in your life? Why are they important to your development? Who are two mentors in your life? Why are they important to your development?