Recognizing Opportunity Unit 1, Chapter 3 Page 46-63

Recognizing Opportunity After completing this chapter, you’ll be able to: Discuss current trends that provide opportunities for Entrepreneurs Explain how to think creatively about opportunity Identify the importance of personal values and goals in choosing an entrepreneurial pursuit Compare advantages and disadvantages of starting your own business

Recognizing Opportunity Definition 1- A (n) _________ is a business that conducts business by means of the Internet Online Business They have the potential to attract huge numbers of customers Why?

Recognizing Opportunity Definition 2 _____________are intangible things that business do for us to enhance our lives Services Even if company’s produce products, they still provide services The US Census reported in 2010 that service business are the fastest growing in the economy Examples?

Recognizing Opportunity Newer types of businesses: Home-Based Examples include: consultants sales reps, tradespeople, writers, artists, etc. Socially responsible/Non-Profits Examples include: feeding the hungry, theatre groups, education, etc.

Recognizing Opportunity Technology has helped make these changes possible Definition 3 _______________ is contracting with other companies for services Outsourcing What are the advantages and disadvantages of outsourcing?

Recognizing Opportunity Outsourcing allows small businesses to focus on what they do best while tapping into outside sources of expertise Video game example Allows for greater efficiencies, decreases overhead, lowers regulatory compliance, more attractive to investors

Recognizing Opportunity Work with a partner to answer the following: What are some functions/jobs that school districts could outsource to save money? Be prepared to present your findings

Recognizing Opportunity Definition 4 Forming a partnership with another company is a _____________ Strategic Alliance Example 3M

Recognizing Opportunity Entrepreneurial thinking is about generating ideas and recognizing opportunities How do people come up with ideas? Creativity!!

Recognizing Opportunity Definition 4 ___________ is finding new ways of doing things, usually with creativity Innovation It usually involves connection, discovery, invention, and application Ex DaVinci and trees

Recognizing Opportunity Ideas are not the same things as opportunities Anyone can be creative and have ideas, but it is another thing to make them commercially viable Definition 5 A _________ is a specialized market Niche Market The result can be new business resulting from the entrepreneurs alertness to unmet needs

Recognizing Opportunity Opportunities can develop from trends What are some examples? Fitness and Health, Ethnic Products, Indulgence Goods and Luxury Items, etc.

Recognizing Opportunity Consider your own experiences Look at your hobbies Look at things you do at work or in school What can be done to make life easier?

Recognizing Opportunity Section Review Identify two new trends that can be a source for new business. How do demographics affect business? How can brainstorming, creative thinking, and observations be used to develop new businesses?

Recognizing Opportunity Section 2 Value Inventory Definition 6 _________ define who you are, shape your attitudes, and help you identify your priorities Values

Recognizing Opportunity Adventure Balance Commitment Community Compassion Competition Courage Creativity Environmentalism Fairness Financial Security Fun Generosity Hard Work Health Honesty Independence Integrity Kindness Knowledge Learning Loyalty Physical Appearance Power Recognition Relationships Responsibility Security Social Responsibility Solitude Spirituality Tolerance

Recognizing Opportunity Choose the 10 values that matter to you the most Who or what has been the greatest influence on your values? Why? Be prepared to share!!

Recognizing Opportunity Family Businesses Buying an existing business Definition 7 _____________ is loyalty displayed by customers for the business you take over Goodwill What are other benefits? Employees in place, trained, established product, credit, reputation, etc.

Recognizing Opportunity Before you start your own business, ask the following questions: Do I have the motivation to start from nothing? Does the business align with my personality, abilities, values, and goals? Do I have sufficient knowledge of basic operation to undertake the business?

Recognizing Opportunity Do I have the necessary managerial ability? Do I have the right partners to help me with the business? Do I have enough financial resources to start from scratch? Am I willing to accept the risk?

Recognizing Opportunity 1. What role do your values play in the decision to buy or start a business? 2. Why would you start your own business instead of buying an existing one? Or would you? 3. Discuss the importance of personality when deciding what type of business to open.