Starting a Business Objective: Discover the fundamental things you need to know to start a business.

Generate Ideas Entrepreneurs must generates ideas by Entrepreneurs must generates ideas by  Recognizing business opportunities  Considering their own skills and hobbies  Thinking about people’s needs and wants  Researching potential ideas  Learning about potential competition. Use the Generating Business Ideas activity as a starting point (located on the 6 th grade class website).

Choose a Business Type Product Product Service Service Combination Product and Service Combination Product and Service

Product Businesses Sell goods to consumers and other businesses Sell goods to consumers and other businesses Retailers and distributors are product businesses Retailers and distributors are product businesses Examples Examples  Old Navy  Dollar General  Best Buy  Dick’s Sporting Goods

Service Businesses Provide services rather than goods Provide services rather than goods Some service businesses meet needs (medical clinics, law firms) Some service businesses meet needs (medical clinics, law firms) Some service businesses provide wants (taxi companies, ISPs) Some service businesses provide wants (taxi companies, ISPs) Examples Examples  Barber shop  Dry Cleaners  Dentist Office  Car repair shops

Combination Product and Service Some businesses are both product and service businesses—they sell a product and provide a service. Some businesses are both product and service businesses—they sell a product and provide a service. Examples Examples  Automobile dealerships  Hair salons  Appliance stores  Can you think of others?

Finding the Right Consumer A consumer is the person that will use the product. Consumers are the people that businesses sell to. A consumer is the person that will use the product. Consumers are the people that businesses sell to. When grouped together consumers are known as demographics. When grouped together consumers are known as demographics.  Demographics: Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, income and characteristics.

Finding the Right Consumer Use demographics to determine the profile of an average consumer for your business. Use demographics to determine the profile of an average consumer for your business. This profile is called a target audience/target market. This profile is called a target audience/target market.   Ex. Target market for a surf shop in Myrtle Beach: Men and women under the age of 30 who enjoy swimming, water sports and seek adventure. They are both experienced and beginning surfers.

Make a Decision Make a final decision on what products or services you will provide and you are selling to. Make a final decision on what products or services you will provide and you are selling to. How much will you charge? Be specific! How much will you charge? Be specific!

Spread the Word Spread the word so that people will know about your new business. Spread the word so that people will know about your new business. Remember to keep your target audience/target market in mind. Remember to keep your target audience/target market in mind. Here is information about advertising your business. Here is information about advertising your business. Information on Advertising - Link 1 Information on Advertising - Link 1 Information of Advertising - Link 2 Information of Advertising - Link 2 Information of Advertising - Link 3 Information of Advertising - Link 3

Get Started Once you have review this PowerPoint and completed the activity. Get started on the Once you have review this PowerPoint and completed the Generating Business Ideas activity. Get started on the Start Your Own Business (Entrepreneur) Project.

Resources Determine the resources needed to start and run your business. Consider the following cost and needs: Determine the resources needed to start and run your business. Consider the following cost and needs:  Rent Cost for Building Location  # of Employees to be Hired & Their Pay  Equipment & Materials to be Purchased